67278 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

subchapter, for which prior approval is

always required.

§ 129.7 Prior Approval (License).

(a) The following brokering activities

require the prior written approval of the

Office of Defense Trade Controls:

(1) Brokering activities pertaining to

certain defense articles (or associated

defense services) covered by or of a

nature described by Part 121, to or from

any country, as follows:

(i) Fully automatic firearms and

components and parts therefor;

(ii) Nuclear weapons strategic

delivery systems and all components,

parts, accessories, attachments

specifically designed for such systems

and associated equipment;

(iii) Nuclear weapons design and test

equipment of a nature described by

Category XVI of Part 121;

(iv) Naval nuclear propulsion

equipment of a nature described by

Category VI(e);

(v) Missile Technology Control

Regime Category I items (§ 121.16);

(vi) Classified defense articles,

services and technical data;

(vii) Foreign defense articles or

defense services (other than those that

are arranged wholly within and

destined exclusively for the North

Atlantic Treaty Organization, Japan,

Australia, or New Zealand (see

§§ 129.6(b)(2) and 129.7(a)).

(2) Brokering activities involving

defense articles or defense services

covered by, or of a nature described by,

Part 121, in addition to those specified

in § 129.7(a), that are designated as

significant military equipment under

this subchapter, for or from any country

not a member of the North Atlantic

Treaty Organization, Australia, New

Zealand, or Japan whenever any of the

following factors are present:

(i) The value of the significant

military equipment is $1,000,000 or

more;

(ii) The identical significant military

equipment has not been previously

licensed for export to the armed forces

of the country concerned under this

subchapter or approved for sale under

the Foreign Military Sales Program of

the Department of Defense;

(iii) Significant military equipment

would be manufactured abroad as a

result of the articles or services being

brokered; or

(iv) The recipient or end user is not

a foreign government or international

organization.

(b) The requirements of this section

for prior written approval are met by

any of the following:

(1) A license or other written approval

issued under parts 123, 124, or 125 of

this subchapter for the permanent or

temporary export or temporary import

of the particular defense article, defense

service or technical data subject to prior

approval under this section, provided

the names of all brokers have been

identified in an attachment

accompanying submission of the initial

application; or

(2) A written statement from the

Office of Defense Trade Controls

approving the proposed activity or the

making of a proposal or presentation.

(c) Requests for approval of brokering

activities shall be submitted in writing

to the Office of Defense Trade Controls

by an empowered official of the

registered broker; the letter shall also

meet the requirements of § 126.13 of this

subchapter.

(d) The request shall identify all

parties involved in the proposed

transaction and their roles, as well as

outline in detail the defense article and

related technical data (including

manufacturer, military designation and

model number), quantity and value, the

security classification, if any, of the

articles and related technical data, the

country or countries involved, and the

specific end use and end user(s).

(e) The procedures outlined in

§ 126.8(c) through (g) are equally

applicable with respect to this section.

§ 129.8 Prior Notification.

(a) Prior notification to the Office of

Defense Trade Controls is required for

brokering activities with respect to

significant military equipment valued at

less than $1,000,000, except for sharing

of basic marketing information (e.g.,

information that does not include

performance characteristics, price and

probable availability for delivery) by

U.S. persons registered as exporters

under Part 122.

(b) The requirement of this section for

prior notification is met by informing

the Office of Defense Trade Controls by

letter at least 30 days before making a

brokering proposal or presentation. The

Office of Defense Trade Controls will

provide written acknowledgment of

such prior notification to confirm

compliance with this requirement and

the commencement of the 30-day

notification period.

(c) The procedures outlined in

§ 126.8(c) through (g) are equally

applicable with respect to this section.

§ 129.9 Reports.

(a) Any person required to register

under this part shall provide annually a

report to the Office of Defense Trade

Controls enumerating and describing its

brokering activities by quantity, type,

U.S. dollar value, and purchaser(s) and

recipient(s), license(s) numbers for

approved activities and any exemptions

utilized for other covered activities.

§ 129.10 Guidance.

(a) Any person desiring guidance on

issues related to this part, such as

whether an activity is a brokering

activity within the scope of this Part, or

whether a prior approval or notification

requirement applies, may seek guidance

in writing from the Office of Defense

Trade Controls. The procedures and

conditions stated in § 126.9 apply

equally to requests under this section.

Dated: November 24, 1997.

Strobe Talbott,

Acting Secretary of State.

[FR Doc. 97–33649 Filed 12–23–97; 8:45 am]

BILLING CODE 4710–25–P

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250 and 251

RIN 1010–AC10

Geological and Geophysical (G&G)

Explorations of the Outer Continental

Shelf

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Final rule.

SUMMARY: This rule revises MMS’

regulations and expands the Notice

requirement to include all oil, gas, and

sulphur related G&G scientific research

not conducted under a permit. The

revisions also update the addresses for

applying for a permit or filing a Notice,

standardize definitions, describe the

procedures for protecting archaeological

resources, reflect changes in technology,

and clarify the obligations of third

parties who obtain G&G data and

information collected under a permit.

These revisions are being made because

there have been instances of commercial

G&G exploration being conducted by

academia without a permit, the

addresses for all the MMS regions have

changed, changes in technology need to

be incorporated, and permittees and

third parties have questioned MMS

access to certain G&G data and

information that were collected under a

permit and further processed by third

parties. The modifications will enable

MMS to better ensure safe use and

environmental protection of the outer

continental shelf (OCS) for all G&G

related operations, expedite permit

applications and Notices to MMS, and

make the regulatory language clearer
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67279

and more understandable. MMS also

believes that it is necessary to more

clearly assert its authority to acquire

G&G data and information.

Access to these data and information

is needed to ensure that the U.S.

Government receives fair market value

on leases, especially in areas of complex

geology, and for the Government to

conduct analyses or assessments for

royalty relief and other purposes.

EFFECTIVE DATE: January 23, 1998.

FOR FURTHER INFORMATION CONTACT:

David R. Zinzer, Resource Evaluation

Division, (703) 787–1515 or Kumkum

Ray, Rules Processing Team, 703) 787–

1600.

SUPPLEMENTARY INFORMATION: This final

rule implements changes put forward by

our notice of proposed rulemaking

(NPR) that was published February 11,

1997 (62 FR 6149) and which solicited

public comments. The comment period

was extended twice, the last extension

ending July 29, 1997. We met with

industry twice during the comment

period, May 15 in Washington, D.C.,

and July 10 in New Orleans, LA. We

received 22 sets of written comments

and recommendations in response to the

NPR. Ten of these comments and

recommendations were from industry

associations, and twelve were from

permittees and third party users of G&G

data and information collected on the

OCS. We have carefully considered each

of these comments and

recommendations. We did not adopt

recommendations that did not appear to

be in the public’s best interest.

In order to assist industry in

understanding how MMS will

implement the final rule, MMS will

conduct a meeting with industry and

other interested parties in the Gulf of

Mexico Region following publication of

a meeting time in the Federal Register.

Discussion and Analysis of Comments

Some commenters requested that

MMS withdraw the final rule in its

entirety and/or conduct a negotiated

rulemaking, citing adverse effects on the

oil and gas industry, including oil and

gas producers, independent oil and gas

companies, and geophysical service

companies, accompanied by a

significant reduction in the amount of

data collection and exploration by

industry.

MMS has decided to proceed with the

final rule after carefully considering all

written comments on the proposed

rulemaking and after lengthy

discussions with industry at the

meetings in Washington, D.C., and New

Orleans, Louisiana. MMS appreciates

the candor and scope of the many

comments that were put forth and the

concerns of the industry. However, we

believe that specific concerns with the

proposed rulemaking have been

addressed properly, and that where

MMS and industry disagree, MMS is

acting appropriately as the Federal

agency required by the OCS Lands Act

(OSCLA) to manage the oil and natural

gas resources of the OCS in an

environmentally responsible and safe

manner. MMS must oversee G&G

explorations on the OCS in an orderly

and fair manner, balancing the needs of

industry and the public interest.

Some commenters questioned

whether MMS had performed the

analysis required under the Regulatory

Flexibility Act, or made an estimate of

how much it would cost the exploration

and production industry to comply with

the proposed revisions to part 251.

These comments cited the potential

administrative burdens of the proposed

changes and their significant impact on

the ability of smaller companies to

compete in the Gulf of Mexico. MMS

has addressed these concerns under the

section of the preamble titled,

‘‘Regulatory Flexibility Act.’’

Section-by-Section Analysis

Section 251.1 Definitions

The definition of exploration was

expanded to include marine and

airborne surveys. Although MMS

proposed changing the definition of

human environment, several comments

criticized the proposed wording as

broad and ambiguous. MMS agrees to

retain the existing definition.

The definitions of lease and lessee

were changed to read the same as the

definitions in part 250.

The definitions of archaeological

interest, material remains, and

significant archaeological resource were

added to explain archaeological

protection requirements in part 251. The

language adopted in this rule is the

same as that used in part 250.

The definition of third party was

clarified to include all persons who, by

whatever means, obtained from

permittees or other third parties G&G

data or information collected under a

permit.

The definition of you was changed in

response to comments that the

definition in the proposed rule was too

vague and broad and should not include

persons who only inquire about a

permit or Notice. You also applies to

third parties who assume certain

responsibilities under §§ 251.11 and

251.12.

Section 251.2 Purpose of This Part

Paragraph (d) was added to this

section to clarify the U.S. Government’s

right to certain data and information,

explain MMS’ obligation to pay certain

reimbursements, and set out MMS’

procedures for safeguarding proprietary

and privileged data and information

acquired from industry and other

sources.

Section 251.3 Authority and

Applicability of This Part

One commenter questioned whether,

under the OCSLA, the Secretary of the

Interior (Secretary) could allow G&G

exploration under a Notice, instead of

requiring a permit. Section 11 of the

OCSLA (43 U.S.C. 1340) gives the

Secretary the authority to allow

geological and geophysical exploration.

Because of the commercial nature of the

activity, MMS believes that it is

preferable to require that G&G

exploration be conducted only under

the auspices of a permit. G&G scientific

research can be conducted either under

a permit or by filing a Notice, depending

on the activity being conducted.

The commenter also asked under

what authority the Secretary applies

MMS regulations to ships or vessels,

and exempts Federal agencies from the

permit procedures. The OCSLA

definition of exploration includes

geophysical surveys where magnetic,

gravity, seismic, or other systems are

used to detect or imply the presence of

minerals. Ships and vessels are

commonly used in, and are an integral

part of, geophysical surveys. Therefore,

it is necessary to apply MMS’’

regulations to them. The definition of

person in the OCSLA does not include

Federal agencies. Thus, Federal agencies

are not authorized as persons by the

Secretary to conduct G&G explorations

in the OCS and thus are not subject to

part 251.

Finally, the same commenter found

no regulatory language dealing with the

Secretary’s review or approval of permit

applications or time limits to take action

on applications. While section 11 of the

OCSLA authorizes the Secretary to issue

permits for exploration, it does not

require the Secretary to set forth time

limits to issue permits. The authority to

review and approve permit applications

is delegated to the appropriate MMS

Regional Director who exercises this

authority under §§ 251.5 and 251.7, and

sets the administrative time limits to

review and approve permit applications.

Time limits may vary in each OCS

Region. Response times to permit

applications have not been an issue in

the past.
67280 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

Section 251.4 Types of G&G Activities

That Require Permits or Notices

Several commenters asked whether

commercial G&G research related to

developing or testing new equipment or

techniques would require a permit or

could be conducted under a Notice. As

mentioned earlier, MMS believes that a

Notice is not appropriate for commercial

G&G activities. Basically, whether the

G&G company calls the activity

‘‘research’’ or ‘‘exploration’’ is not

important. A permit is required if the

data collected from the ‘‘research’’

activity can be used in exploration for

oil, gas, or sulphur, or if the ‘‘research’’

activity involves solid or liquid

explosives, or deep stratigraphic tests.

Other research activities that only

involve developing or testing new

equipment or techniques do not require

a permit.

The underlying concern of the

commenters, however, seemed to be

whether they were required to give

MMS the testing and development work

they perform when a permit is required.

Generally, descriptions of new

equipment, techniques, computer

hardware/software, or the results of tests

on those items do not need to be given

to MMS. However, if these items were

used to produce G&G data and

information which must be submitted to

MMS, it may be necessary to provide

some explanatory information to MMS

in order to allow the agency to properly

evaluate the data and information.

Section 251.5 Applying for Permits or

Filing Notices

One commenter, addressing

§ 251.5(c)(7), noted that collaboration on

research between industry and

universities may make it difficult to

estimate the ‘‘earliest time’’ that data

will be available to the public. MMS

recognizes this difficulty and only

requires a good faith estimate of the

time that scientific research data and

information will be released to the

public. To alleviate these concerns,

MMS has inserted the word

‘‘practicable’’ between ‘‘earliest’’ and

‘‘time’’ to conform with the wording

used in part 251 since 1976.

Section 251.6 Obligations and Rights

Under a Permit or a Notice.

One commenter objected to the use of

‘‘human environment’’ in § 251.6(a)(2),

citing subjective judgments regarding

the term ‘‘quality of life’’, which was

part of the proposed definition of

‘‘human environment.’’ The definition

of ‘‘human environment’’ was not

changed in response to this and other

comments. However, the word

‘‘property’’ is added to § 251.6(a)(2) to

make the obligation under this part

conform with the standards in part 250

which apply to operations under a lease,

right of use or easement, or right-of-way.

Several commenters objected to the

wording of § 251.6(a)(7) which removed

the word ‘‘unreasonably’’ from the

requirement to not interfere with or

cause harm to other users of an area. We

agree, and ‘‘unreasonably’’ will be reinserted before the word ‘‘interfere’.

Several commenters objected to new

wording in § 251.6(c) that requires

entities conducting G&G operations to

consult with and coordinate their

operational activities with specific users

of an area. The commenters argued that

consultation is not always practicable

and that, in certain cases, proprietary

information regarding the timing and

location of planned surveys would be

unfairly revealed to competitors. The

wording has been changed to reflect that

MMS’s intent is for companies to

consult and coordinate their G&G

activities solely for navigational and

safety purposes. MMS also recognizes

that the International Association of

Geophysical Contractors acts on behalf

of the geophysical survey companies to

coordinate its members’ activities

through a time sharing system to

promote safe operations and protect

members’ proprietary survey designs

and plans.

Several commenters objected to

proposed language which expands the

use of the best available and safest

technologies (BAST) beyond the area of

test drilling requirements. The wording

in § 251.6(d) is changed to make clear

that the BAST requirement only applies

to shallow test drilling and deep

stratigraphic test drilling conducted

under a permit.

Section 251.7 Test Drilling Activities

Under a Permit

One commenter suggested deleting

§ 251.7(a)(2), stating that MMS cannot

mandate compliance of shallow test

drilling activities with requirements of

the Coastal Zone Management Act

(CZMA). We agree that MMS cannot

establish requirements under the

auspices of the CZMA. However, we

disagree that the proposed language

creates a new mandate. Section

251.7(a)(2) simply advises permit

applicants that MMS may require

submittal of consistency certification

when a federally approved coastal

management program requires

consistency review.

Section 251.7(b)(5), ‘‘Protecting

archaeological resources,’’ is revised in

the final rule to make the wording

conform with similar requirements in

part 250. Also, as mentioned previously,

new definitions related to

archaeological resources were added in

the definitions section to better explain

the requirements of this section.

Section 251.8 Inspection and

Reporting Requirements for Activities

Under a Permit

One commenter questioned our

proposed removal of the word ‘‘actual’’

from the term ‘‘actual costs’’ in

determining the amount of

reimbursement to a permittee when

MMS inspectors are required to be

accommodated during activities

authorized under part 251. The point of

the proposed change was to impose a

90-day time limit for reimbursement

requests so that MMS can quickly clear

such expenses. Permittees will be

reimbursed for actual expenses incurred

as long as their request for

reimbursement is made within the 90-

day period.

Some commenters noted that there

was no provision in § 251.8(b) for

permittees to make oral requests to

MMS for modifications to their

programs with a followup in writing,

although § 251.4(b)(2) allows a person to

file a Notice orally with a followup in

writing if circumstances preclude a 30-

day advance written Notice. MMS

recognizes that there are circumstances

when written requests to modify

programs are not practicable, and that

an oral request with a written followup

could be acceptable in such cases. The

wording in § 251.8(b) is changed to

allow for such oral requests, but we

want to emphasize that oral requests for

modifications should only be made

when necessary.

One commenter sought clarification

as to the beginning date of the 30-day

period to submit a final report under

§ 251.8(c)(2). The revised wording

indicates that a final report of

exploration or scientific research

activities under a permit is due within

30 days after completion of ‘‘acquisition

activities.’’

Section 251.9 Temporarily Stopping,

Canceling, or Relinquishing Activities

Approved Under a Permit

This section sets out the situation

under which MMS will halt ongoing

permit activities. Section 251.9(a)(2)

was changed to include G&G data and

information in the examples of items

required by MMS which, if not

submitted, could constitute a failure to

comply with applicable law, regulation,

order, or provision of a permit and

result in MMS halting the permit

activities.
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67281

Section 251.10 Penalties and Appeals

No comments were received regarding

§ 251.10.

Section 251.11 Inspection, Selection,

and Submission of Geological Data and

Information Collected Under a Permit

and Processed by Permittees or Third

Parties

Several commenters objected to the

proposed requirement in § 251.11(a)(1)

that a permittee notify the Regional

Director ‘‘immediately’’ after acquiring,

analyzing, processing, or interpreting

geological data and information, citing

excessive paperwork and other burdens.

MMS agrees. The wording has been

changed to require the permittee to

notify the Regional Director after

completion of the initial analysis,

processing, and interpretation of

geological data and information

collected under a permit. MMS does not

require continual notification of every

analysis, processing, and interpretation.

Furthermore, the reference in

§ 251.11(a)(1) to acquisition of

geological data is redundant and was

therefore removed, since the

requirement for reporting acquisition of

geological data resides in § 251.8(c)(2).

Some commenters objected to the

proposed wording in § 251.11(c)(1)

which requires a record of all geological

data and information, ‘‘describing each

operation of analysis, processing, and

interpretation.’’ The commenters

considered this a shift of MMS focus

from geological information, as defined

in part 251, to descriptions of the

technologies and techniques used to

arrive at processed, analyzed, or

interpreted information. It is not the

intent of MMS to acquire from industry

these types of proprietary or

confidential technical information.

Therefore, MMS will require only a

description of each ‘‘type’’ of analysis,

processing, or interpretation, as

specified in a G&G permit.

Several commenters objected to the

provisions in § 251.11(d), relating to the

obligations of permittees and third

parties who obtain geological data and

information. Since the requirements of

this section are similar to § 251.12(d),

we have combined our discussion of

those two sections. Please see the

section titled ‘‘Third Party Issues’’ for a

complete discussion of obligations

when G&G data and information

collected under a permit are obtained by

a third party.

Section 251.12 Inspection, Selection,

and Submission of Geophysical Data

and Information Collected Under a

Permit and Processed by Permittees or

Third Parties

Similar to the comments on

§ 251.11(a)(1), many commenters

objected to the requirement in

§ 251.12(a)(1) that a permittee notify the

Regional Director ‘‘immediately’’ after

initially acquiring, processing, and

interpreting any geophysical data and

information collected under a permit,

again citing excessive costs and other

burdens. MMS agrees. The wording is

changed to require the permittee to

notify the Regional Director after

completion of the initial processing and

interpretation of geophysical data and

information collected under a permit.

MMS does not intend to require

continual notification of every step of

initial processing and interpretation. In

addition, the reference in § 251.12(a)(1)

to acquisition of geophysical data is

redundant and removed, since the

requirement for reporting acquisition of

geophysical data also resides in

§ 251.8(c)(2).

Some commenters questioned the

provisions in §§ 251.12(c)(2) and

251.12(c)(3) which require that

processed geophysical information be

submitted to MMS in a ‘‘quality’’ format

suitable for processing or interpretive

evaluation. There was a

misunderstanding as to what was meant

by ‘‘quality’’ format. Here ‘‘quality’’

means the same level of format used by

a permittee or third party in the normal

course of their business.

Some commenters questioned

whether MMS was seeking ‘‘black box’’

technologies that are privileged and

proprietary to the person submitting the

G&G data and information. MMS

requires only the information, including

a detailed format, necessary to load

digital data and information. MMS does

not request nor seek proprietary

software or procedures used to prepare

the data and information.

Third Party Issues

Several commenters strongly objected

to §§ 251.11(d) and 251.12(d), which

clarify the permit obligations placed on

both the permittee and the third party

when geological and geophysical data

and information are transferred by any

means to a third party. Most

commenters argued that the provisions

of §§ 251.11 and 251.12 should not

apply to third parties who obtain G&G

data and information from permittees

through a license agreement since no

‘‘transfer’’ of data and information takes

place. We disagree. The obligation to

notify the Regional Supervisor when a

permittee provides geophysical data or

processed information to a third party,

or a third party provides data and

information received from a permittee to

another third party, has been in place

since part 251 was added to Title 30 of

the Code of Federal Regulations,

effective June 11, 1976.

MMS has always considered a license

agreement a form of transfer or

exchange, as are a sale, trade, or other

agreement between a permittee and a

third party. In order to clarify any

confusion resulting from industry’s

interpretation of what constitutes a

transfer, MMS has revised the language

of the regulation to make clear that the

obligations under §§ 251.11 and 251.12

are triggered whenever a third party

obtains by any means data and

information collected under a permit.

However, in an effort to alleviate

industry concerns over the burden and

cost of reporting all license agreements,

MMS will require identification of third

parties who obtain data and information

under licensing agreements only in

response to a written request by MMS

to the permittee, or to the third party

which licensed the data to another third

party.

The commenters also questioned the

statutory authority of MMS to acquire

G&G data and information from third

parties who obtain the data and

information under a license agreement.

The authority for obtaining data and

information that were collected under a

permit and further processed by a third

party is at section 11 of the OCSLA (43

U.S.C. 1340 (a)(1)). This section

provides that only persons ‘‘authorized’’

by the Secretary may conduct G&G

activities on the OCS. In the absence of

a lease, MMS ‘‘authorization’’ is the

‘‘permit.’’

One of the terms of the permit is the

permittee’s agreement to provide MMS

with all of the data and information

collected, interpretations, etc., and to

identify third parties. The regulations in

turn, at former §§ 251.11(c) and 251.12

(c) required the recipients of those data

and information or interpretation to

accept those same permit obligations as

a condition of receipt. Third party

recipients are still subject to the

regulatory requirements of a permittee

in the revised §§ 251.11 and 251.12,

including the obligation to submit G&G

data and information for inspection and

possible retention by MMS.

Several commenters stated that there

would be an additional administrative

burden on third parties who would be

required to submit such data and

information to MMS for inspection and

possible retention, than is the case
67282 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

under the current regulations. We

acknowledge an increase in

administrative work and costs to third

parties. However, MMS does not

consider the extra burden under the

revised rule to be significant.

Furthermore, the requirement for third

parties to submit data and information

is not new relative to the requirement of

the existing regulations. MMS does

anticipate a larger percentage of its data

needs coming from third parties.

However, we anticipate that most of

MMS’ future data needs will continue to

come directly from permittees, who

have provided over 95 percent of

processed seismic information that

MMS has acquired on the OCS.

Some commenters also claimed that

the proposed language would require

that third parties assume all

responsibilities of permittees, including

operational and environmental

requirements. That is not the intent of

MMS. The responsibilities of third

parties to whom data and information

were transferred from permittees have

always been limited to the data

submittal sections of part 251,

specifically §§ 251.11 and 251.12. The

final rule has been modified so that

third parties who obtained data and

information are exempt from the

§§ 251.11(a)(1) and 251.12(a)(1)

requirement of automatic notification to

MMS. This exemption is a change from

the proposed rulemaking and from

previous final rulemakings and will ease

the potential administrative burdens on

third parties.

Several commenters objected to the

provisions that required third parties to

submit data and information obtained

from permittees to MMS, arguing that

the terms of license agreements will be

violated and/or license agreements will

have to be rewritten to accommodate

submittal to MMS, resulting in a large

paperwork burden. MMS has always

required that third parties assume all

the data submittal obligations of a

permittee if data and information are

transferred to the third party by a

permittee. License agreements should

therefore have always reflected the

possibility of submittal of data and

information to MMS by third parties.

Some commenters stated that the

acquisition of G&G data and information

by MMS from third parties who

obtained the data under license

agreements is a taking of private

property. MMS disagrees. Applicants for

a permit accept, as part of the permit

terms, an obligation to provide data

obtained under the permit to MMS. In

addition, applicants agree to require that

any third party who obtains the data

accept those same obligations. If an

applicant is unwilling to agree, they

have the choice of not obtaining the

permit. Third parties who agree to the

requirements can obtain the data from

the permittees. Those who choose not to

agree also have an option. They simply

cannot accept the data without also

accepting the obligation imposed by the

permit.

Several commenters expressed

concern about revealing to MMS the

identity of third parties who obtained

data and information from permittees.

The commenters noted that public

disclosure of a third party’s identity, or

the areas on the OCS for which the third

party obtained data, could jeopardize a

third party’s competitive position and

reveal business strategies of operating

and obtaining leases on the OCS. MMS

agrees that public disclosure of a third

party’s business interests and strategies,

or of other privileged and proprietary

information, would have a deleterious

effect on third parties. Such information

has been protected in the past by MMS,

and we are reaffirming through these

regulations that such information would

continue to be protected by MMS as

trade secrets or confidential business

information which are exempt from the

Freedom of Information Act and not

subject to release under regulations

which come under the purview of MMS.

A new provision in § 251.14(a)(3)

provides further protection for third

party recipients of data and information

collected under permits. Under this

provision, MMS will keep confidential

the identities of third party recipients

and will not release these identities

unless both the permittee and the third

parties agree to the disclosure.

Several commenters suggested that

MMS continue using the ‘‘trial

procedures’’ set up in 1995 between

MMS and industry as a mechanism for

leases in the Gulf of Mexico. Under

these procedures, bidders on a

particular tract were required to submit

to MMS specific seismic information

collected under a permit and processed

by the bidder (a third party). While

some of the commenters acknowledged

problems with implementation of the

‘‘trial procedures,’’ they encouraged

MMS to pursue improvements instead

of proceeding with this final rule.

MMS has always considered the ‘‘trial

procedures’’ to be temporary and has

indicated such to industry. In the two

meetings with industry, MMS cited

instances of noncompliance, in some

cases perhaps deliberate, with the

provisions of the ‘‘trial procedures.’’ It

is now also becoming apparent that

there are data necessary for a thorough

assessment of tracts receiving bids that

are not available under the ‘‘trial

procedures.’’ Furthermore, MMS now

needs to clarify and finalize the process

of obtaining G&G data and information

collected under permits for all of the

OCS, not only the Gulf of Mexico.

Section 251.14 Protecting and

Disclosing Data and Information

Submitted to MMS Under a Permit

Some commenters recommended that

the Director, MMS, rather than the

appropriate Regional Director, be

responsible for the provisions of

§ 251.14(c), the procedure that MMS

follows to disclose acquired data and

information to a contractor for

reproduction, processing, and

interpretation. The commenters argued

that wrongful disclosure of data could

have disastrous consequences from a

competitive standpoint, and that

ensuring that the top official of MMS is

bound by all applicable laws and

regulations regarding dissemination of

the data would better protect data. We

feel that it is unnecessary to specify that

only the Director be responsible for

disclosure of data or that only the

Director can notify the proper party of

disclosure of data to contractors for

authorized purposes. The Director is

still responsible for actions of

subordinates acting in an official

capacity.

Section 251.14(c) was changed to

clarify that the person, whether a

permittee or third party, who submitted

the data and information under

§§ 251.11 or 251.12 will be advised by

MMS of any contemplated disclosure to

a contractor for reproduction,

processing, and interpretation.

In this rulemaking, MMS is also

making two corrections in 30 CFR part

250.

The first correction is to § 250.209(c).

This technical amendment amends the

citation in (c) from ‘‘43 CFR part 62

subpart D’’ to ‘‘43 CFR part 12 subpart

D.’’ The second correction is to subpart

O. The numbering of subpart O will be

moved down one. The subpart will

begin at § 250.210 and end at § 250.234.

Authors: David R. Zinzer, Resource

Evaluation Division, and Kumkum Ray,

Rules Processing Team.

Executive Order (E.O.) 12866

This rule is not significant under E.O.

12866, ‘‘Regulatory Planning and

Review,’’ and does not require a review

by the Office of Management and

Budget (OMB). Most revisions to the

rule are generally nonsubstantive

changes and will have a negligible

economic effect on the oil, gas, sulphur,

and mining industries or scientific

researchers. Bonding requirements in

the rule affect G&G exploration costs as
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67283

outlined below. MMS estimated the

economic effects by assuming that one

deep stratigraphic well will be drilled

per year, based on past history of

frequency of wells drilled. Bonding

requirements for single deep

stratigraphic wells recently increased

from $50,000 to $200,000; at a 2-percent

maximum rate, the bonding cost

recently increased from $1,000 to

$4,000.

MMS does not expect that any

company will drill enough deep

stratigraphic wells to warrant an area

bond. If a company did want an area

bond, then the bonding requirement

would increase from $300,000 to

$1,000,000; at a 2-percent maximum

rate, the bonding cost would increase

from $6,000 to $20,000. Since this

increase in bonding cost will not have

a major economic effect (less than $100

million), the proposed rule is not

considered an economically significant

rule. Additionally, the proposed

revisions will not create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency, materially alter the

budgetary impact of entitlements,

grants, user fees, or loan programs, or

raise novel legal or policy issues.

Regulatory Flexibility Act

The changes to 30 CFR part 251 will

not have a significant economic effect

on the oil and gas industry or small

business entities. The final rulemaking

may involve small businesses or other

small entities if they desire to perform

geological or geophysical exploration or

scientific research on the OCS. The

Small Business Administration defines

a small business as having:

• Annual revenues of $5 million or

less for exploration service and field

service companies;

• Less than 500 employees for

drilling companies and for companies

that extract oil, gas, or natural gas

liquids.

However, a typical exploratory well in

the shallow waters of the Gulf of Mexico

costs more than $2.7 million to drill;

and the acquisition and processing of a

single block (9 sq. mi) of exclusive 3D

seismic data could cost as much as $1

million. Because of the technical and

financial resources needed to perform

these activities offshore, the majority of

entities conducting these activities are

not considered small.

The primary economic effect on small

businesses is the cost associated with

information collection activities. The

final rulemaking contains virtually all of

the same reporting requirements and

attendant costs as the existing

regulations. There is only one change in

reporting requirements which

represents a small increase. The

increased burden is not on the oil and

gas industry, but for entities involved in

scientific research.

The increased reporting requirement

contained in these regulations relates to

the filing of a Notice for all scientific

research involving geological and

geophysical activities. Previously, the

requirement for a Notice existed solely

for certain geological scientific research

activities, namely shallow test drilling.

We estimate that the new requirement

will result in the filing of an additional

two to four Notices annually, all from

small entities: 24 to 36 hours; $840 to

$1,260.

Several commenters on the proposed

regulations commented on the extreme

burden that would be imposed on the

oil and gas industry if they were made

to comply with our clarification of

‘‘transfer.’’ They alluded to the need to

modify the large number of existing data

licenses. MMS does not agree with the

contention that there is a material

change in the definition. We maintain

that the requirement is unchanged from

the existing regulations. To the extent

existing licenses need to be revised we

believe the burden and cost of this

revision will not be incurred directly by

small business entities. MMS will,

however, be making requests directly to

small business entities. These new

requests will be offset in part by

elimination of the current procedures.

MMS concludes that complying with

these regulations will not have a

substantial or significant effect on small

business entities operating on the OCS.

MMS in its existing approved

information collection budget estimated

the total burden in complying with

these regulations is 10,604 hours for a

total of $371,140. Our estimate of the

annual burden to small business entities

is approximately 1,060 hours at a cost

of $37,100. This represents about 10

percent of the total compliance burden.

These costs are insignificant given the

fiscal resources required to perform

exploration and development activities

on the OCS. Furthermore, virtually all of

this burden existed under the old rule.

Paperwork Reduction Act

As required by the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.), we submitted the collection of

information contained in the proposed

rule to OMB. The OMB approved the

information collection requirements in

proposed 30 CFR part 251, Geological

and Geophysical (G&G) Explorations of

the Outer Continental Shelf and

assigned OMB control number 1010–

0048. We have examined the

information collection requirements in

this final rule and have determined that

there is no significant change from the

currently approved collection of

information for the proposed rule. The

estimated annual burden for this

collection of information is 10,604

hours, an average of 7.7 hour per

response.

Takings Implication Assessment

The rule does not represent a

government action capable of

interference with constitutionally

protected property rights. A new

requirement in the rule is a Notice for

scientific research in the OCS. Since

MMS is not requiring the researcher to

submit data and information or analyses

resulting from the research activity,

there is no direct or indirect taking.

The rule also clarifies the obligations

of a third party. When a permittee

transfers data and information to a third

party, there is a transfer of the obligation

to provide access to MMS as well.

Further, the recipient of the data and

information is subject to the same

penalty provisions as the original

permittee—if a third party fails to

provide access. These clarifications

better define existing requirements and

add no new requirements.

Other changes are not substantive or

were made to put the regulation into

plain English. Thus, a Takings

Implication Assessment need not be

prepared pursuant to E.O. 12630,

‘‘Governmental Actions and Interference

with Constitutionally Protected Property

Rights.’’

Unfunded Mandates Reform Act of

1995

DOI has determined and certifies

according to the Unfunded Mandates

Reform Act, 2 U.S.C. 1502 et seq., that

this rule will not impose a cost of $100

million or more in any given year on

local, tribal, and State governments, or

the private sector.

E.O. 12988

DOI has certified to OMB that the rule

meets the applicable reform standards

provided in sections 3(a) and 3(b)(2) of

E.O. 12988, ‘‘Civil Justice Reform.’’

National Environmental Policy Act

DOI has also determined that this

action does not constitute a major

Federal action affecting the quality of

the human environment; therefore, an

Environmental Impact Statement is not

required.
67284 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

List of Subjects

30 CFR Part 250

Continental shelf, Environmental

impact statements, Environmental

protection, Government contracts,

Incorporation by reference,

Investigations, Mineral royalties, Oil

and gas development and production,

Oil and gas exploration, Oil and gas

reserves, Penalties, Pipelines, Public

lands—mineral resources, Public

lands—rights-of-way, Reporting and

recordkeeping requirements, Sulphur

development and production, Sulphur

exploration, Surety bonds.

30 CFR Part 251

Continental shelf, Freedom of

information, Oil and gas exploration,

Public lands— mineral resources,

Reporting and recordkeeping

requirements, Research.

Dated: December 16, 1997.

Bob Armstrong,

Assistant Secretary, Land and Minerals

Management.

For the reasons stated in the

preamble, Minerals Management

Service (MMS) amends 30 CFR parts

250 and 251 to read as follows:

PART 250—OIL AND GAS AND

SULPHUR OPERATIONS IN THE

OUTER CONTINENTAL SHELF

1. The authority citation for part 250

continues to read as follows:

Authority: 43 U.S.C. 1334.

Subpart N—Outer Continental Shelf

(OCS) Civil Penalties

2. Section 250.209 paragraph (c) is

revised as follows:

§ 250.209 What are my rights?

* * * * *

(c) * * * The Department of Interior’s

regulations implementing these

authorities are found at 43 CFR part 12

subpart D.

Subpart O—Training

3. In subpart O, §§ 250.209 through

250.233 are redesignated as §§ 250.210

through 250.234, respectively.

4. 30 CFR part 251 is revised to read

as follows:

PART 251—GEOLOGICAL AND

GEOPHYSICAL (G&G) EXPLORATIONS

OF THE OUTER CONTINENTAL SHELF

Sec.

251.1 Definitions.

251.2 Purpose of this part.

251.3 Authority and applicability of this

part.

251.4 Types of G&G activities that require

permits or Notices.

251.5 Applying for permits or filing

Notices.

251.6 Obligations and rights under a permit

or a Notice.

251.7 Test drilling activities under a permit.

251.8 Inspection and reporting

requirements for activities under a

permit.

251.9 Temporarily stopping, canceling, or

relinquishing activities approved under a

permit.

251.10 Penalties and appeals.

251.11 Submission, inspection, and

selection of geological data and

information collected under a permit and

processed by permittees or third parties.

251.12 Submission, inspection, and

selection of geophysical data and

information collected under a permit and

processed by permittees or third parties.

251.13 Reimbursement for the cost of

reproducing data and information and

certain processing costs.

251.14 Protecting and disclosing data and

information submitted to MMS under a

permit.

251.15 Authority for information collection.

Authority: 43 U.S.C. 1331 et seq.

§ 251.1 Definitions.

Terms used in this part have the

following meaning:

Act means the Outer Continental

Shelf Lands Act (OCSLA), as amended

(43 U.S.C. 1331 et seq.).

Analyzed geological information

means data collected under a permit or

a lease that have been analyzed.

Analysis may include, but is not limited

to, identification of lithologic and fossil

content, core analyses, laboratory

analyses of physical and chemical

properties, well logs or charts, results

from formation fluid tests, and

descriptions of hydrocarbon

occurrences or hazardous conditions.

Archaeological interest means capable

of providing scientific or humanistic

understanding of past human behavior,

cultural adaptation, and related topics

through the application of scientific or

scholarly techniques, such as controlled

observation, contextual measurements,

controlled collection, analysis,

interpretation, and explanation.

Archaeological resources means any

material remains of human life or

activities that are at least 50 years of age

and of archaeological interest.

Coastal environment means the

physical, atmospheric, and biological

components, conditions, and factors

that interactively determine the

productivity, state, condition, and

quality of the terrestrial ecosystem from

the shoreline inward to the boundaries

of the coastal zone.

Coastal Zone means the coastal

waters (including the lands therein and

thereunder) and the adjacent shorelands

(including the waters therein and

thereunder), strongly influenced by each

other and in proximity to the shorelines

of the several coastal States and extends

seaward to the outer limit of the U.S.

territorial sea.

Coastal Zone Management Act means

the Coastal Zone Management Act of

1972, as amended (16 U.S.C. 1451 et

seq.).

Data means facts, statistics,

measurements, or samples that have not

been analyzed, processed, or

interpreted.

Deep stratigraphic test means drilling

that involves the penetration into the

sea bottom of more than 500 feet (152

meters).

Director means the Director of the

Minerals Management Service, U.S.

Department of the Interior, or a

subordinate authorized to act on the

Director’s behalf.

Exploration means the commercial

search for oil, gas, and sulphur.

Activities classified as exploration

include, but are not limited to:

(1) Geological and geophysical marine

and airborne surveys where magnetic,

gravity, seismic reflection, seismic

refraction, gas sniffers, coring, or other

systems are used to detect or imply the

presence of oil, gas, or sulphur; and

(2) Any drilling, whether on or off a

geological structure.

Geological and geophysical scientific

research means any oil, gas, or sulphur

related investigation conducted in the

OCS for scientific and/or research

purposes. Geological, geophysical, and

geochemical data and information

gathered and analyzed are made

available to the public for inspection

and reproduction at the earliest

practicable time. The term does not

include commercial geological or

geophysical exploration or research.

Geological exploration means

exploration that uses geological and

geochemical techniques (e.g., coring and

test drilling, well logging, and bottom

sampling) to produce data and

information on oil, gas, and sulphur

resources in support of possible

exploration and development activities.

The term does not include geological

scientific research.

Geophysical exploration means

exploration that utilizes geophysical

techniques (e.g., gravity, magnetic, or

seismic) to produce data and

information on oil, gas, and sulphur

resources in support of possible

exploration and development activities.

The term does not include geophysical

scientific research.

Governor means the Governor of a

State or the person or entity lawfully

designated to exercise the powers
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67285

granted to a Governor pursuant to the

Act.

Human environment means the

physical, social, and economic

components, conditions, and factors

which interactively determine the state,

condition, and quality of living

conditions, employment, and health of

those affected, directly or indirectly, by

activities occurring on the OCS.

Hydrocarbon occurrence means the

direct or indirect detection during

drilling operations of any liquid or

gaseous hydrocarbons by examination of

well cuttings, cores, gas detector

readings, formation fluid tests, wireline

logs, or by any other means. The term

does not include background gas, minor

accumulations of gas, or heavy oil

residues on cuttings and cores.

Information means geological and

geophysical data that have been

analyzed, processed, or interpreted.

Interpreted geological information

means knowledge, often in the form of

schematic cross sections, 3-dimensional

representations, and maps, developed

by determining the geological

significance of geological data and

analyzed and processed geologic

information.

Interpreted geophysical information

means knowledge, often in the form of

seismic cross sections, 3-dimensional

representations, and maps, developed

by determining the geological

significance of geophysical data and

processed geophysical information.

Lease means an agreement which is

issued under section 8 or maintained

under section 6 of the Act and which

authorizes exploration for, and

development and production of,

minerals or the area covered by that

authorization, whichever is required by

the context.

Lessee means a person who has

entered into, or is the MMS approved

assignee of, a lease with the United

States to explore for, develop, and

produce the leased minerals. The term

‘‘lessee’’ also includes an owner of

operating rights.

Marine environment means the

physical, atmospheric, and biological

components, conditions, and factors

that interactively determine the quality

of the marine ecosystem in the coastal

zone and in the OCS.

Material remains mean physical

evidence of human habitation,

occupation, use, or activity, including

the site, location, or context in which

such evidence is situated.

Minerals mean oil, gas, sulphur,

geopressured-geothermal and associated

resources, and all other minerals which

are authorized by an Act of Congress to

be produced from public lands as

defined in section 103 of the Federal

Land Policy and Management Act of

1976 (43 U.S.C. 1702).

Notice means a written statement of

intent to conduct geological or

geophysical scientific research related to

oil, gas, and sulphur in the OCS other

than under a permit.

Oil, gas, and sulphur mean oil, gas,

sulphur, geopressured-geothermal, and

associated resources.

Outer Continental Shelf (OCS) means

all submerged lands lying seaward and

outside the area of lands beneath

navigable waters as defined in section 2

of the Submerged Lands Act (43 U.S.C.

1301), and of which the subsoil and

seabed appertain to the United States

and are subject to its jurisdiction and

control.

Permit means the contract or

agreement, other than a lease, issued

pursuant to this part, under which a

person acquires the right to conduct on

the OCS, in accordance with

appropriate statutes, regulations, and

stipulations:

(1) Geological exploration for mineral

resources;

(2) Geophysical exploration for

mineral resources;

(3) Geological scientific research; or

(4) Geophysical scientific research.

Permittee means the person

authorized by a permit issued pursuant

to this part to conduct activities on the

OCS.

Person means a citizen or national of

the United States; an alien lawfully

admitted for permanent residence in the

United States as defined in section 8

U.S.C. 1101(a)(20); a private, public, or

municipal corporation organized under

the laws of the United States or of any

State or territory thereof; and

associations of such citizens, nationals,

resident aliens, or private, public, or

municipal corporations, States, or

political subdivisions of States or

anyone operating in a manner provided

for by treaty or other applicable

international agreements. The term does

not include Federal agencies.

Processed geological or geophysical

information means data collected under

a permit and later processed or

reprocessed. Processing involves

changing the form of data so as to

facilitate interpretation. Processing

operations may include, but are not

limited to, applying corrections for

known perturbing causes, rearranging or

filtering data, and combining or

transforming data elements.

Reprocessing is the additional

processing other than ordinary

processing used in the general course of

evaluation. Reprocessing operations

may include varying identified

parameters for the detailed study of a

specific problem area.

Secretary means the Secretary of the

Interior or a subordinate authorized to

act on the Secretary’s behalf.

Shallow test drilling means drilling

into the sea bottom to depths less than

those specified in the definition of a

deep stratigraphic test.

Significant archaeological resource

means those archaeological resources

that meet the criteria of significance for

eligibility to the National Register of

Historic Places as defined in 36 CFR

60.4.

Third Party means any person other

than the permittee or a representative of

the United States, including all persons

who obtain data or information acquired

under a permit from the permittee, or

from another third party, by sale, trade,

license agreement, or other means.

Violation means a failure to comply

with any provision of the Act, or a

provision of a regulation or order issued

under the Act, or any provision of a

lease, license, or permit issued under

the Act.

You means a person who applies for

and/or obtains a permit, or files a Notice

to conduct geological or geophysical

exploration or scientific research related

to oil, gas, and sulphur in the OCS.

§ 251.2 Purpose of this part.

(a) To allow you to conduct G&G

activities in the OCS related to oil, gas,

and sulphur on unleased lands or on

lands under lease to a third party.

(b) To ensure that you carry out G&G

activities in a safe and environmentally

sound manner so as to prevent harm or

damage to, or waste of, any natural

resources (including any mineral

deposit in areas leased or not leased),

any life (including fish and other

aquatic life), property, or the marine,

coastal, or human environment.

(c) To inform you and third parties of

your legal and contractual obligations.

(d) To inform you and third parties of

the U.S. Government’s rights to access

G&G data and information collected

under permit in the OCS,

reimbursement for submittal of data and

information, and the proprietary terms

of data and information submitted to,

and retained by, MMS.

§ 251.3 Authority and applicability of this

part.

MMS authorizes you to conduct

exploration or scientific research

activities under this part in accordance

with the Act, the regulations in this

part, orders of the Director/Regional

Director, and other applicable statutes,

regulations, and amendments.

(a) This part does not apply to G&G

exploration conducted by or on behalf
67286 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

of the lessee on a lease in the OCS. Refer

to 30 CFR part 250 if you plan to

conduct G&G activities related to oil,

gas, or sulphur under terms of a lease.

(b) Federal agencies are exempt from

the regulations in this part.

(c) G&G exploration or G&G scientific

research related to minerals other than

oil, gas, and sulphur is covered by

regulations at 30 CFR part 280.

§ 251.4 Types of G&G activities that

require permits or Notices.

(a) Exploration. You must have an

MMS-approved permit to conduct G&G

exploration, including deep

stratigraphic tests, for oil, gas, or

sulphur resources. If you conduct both

geological and geophysical exploration,

you must have a separate permit for

each.

(b) Scientific research. You may only

conduct G&G scientific research related

to oil, gas, and sulphur in the OCS after

you obtain an MMS-approved permit or

file a Notice.

(1) Permit. You must obtain a permit

if the research activities you propose to

conduct involve:

(i) Using solid or liquid explosives;

(ii) Drilling a deep stratigraphic test;

or

(iii) Developing data and information

for proprietary use or sale.

(2) Notice. Any other G&G scientific

research that you conduct related to oil,

gas, and sulphur in the OCS requires

you to file a Notice with the Regional

Director at least 30 days before you

begin. If circumstances preclude a 30-

day Notice, you must provide oral

notification and followup in writing.

You must also inform MMS in writing

when you conclude your work.

§ 251.5 Applying for permits or filing

Notices.

(a) Permits. You must submit a signed

original and three copies of the MMS

permit application form (Form MMS–

327). The form includes names of

persons, type, location, purpose, and

dates of activity, and environmental and

other information.

(b) Disapproval of permit application.

If MMS disapproves your application

for a permit, the Regional Director will

state the reasons for the denial and will

advise you of the changes needed to

obtain approval.

(c) Notices. You must sign and date a

Notice and state:

(1) The name(s) of the person(s) who

will conduct the proposed research;

(2) The name(s) of any other person(s)

participating in the proposed research,

including the sponsor;

(3) The type of research and a brief

description of how you will conduct it;

(4) The location in the OCS, indicated

on a map, plat, or chart, where you will

conduct research;

(5) The proposed dates you project for

your research activity to start and end;

(6) The name, registry number,

registered owner, and port of registry of

vessels used in the operation;

(7) The earliest practicable time you

expect to make the data and information

resulting from your research activity

available to the public;

(8) Your plan of how you will make

the data and information you collected

available to the public;

(9) That you and others involved will

not sell or withhold for exclusive use

the data and information resulting from

your research; and

(10) At your option, you may submit

(as a substitute for the material required

in paragraphs (c)(7), (c)(8), and (c)(9) of

this section) the nonexclusive use

agreement for scientific research

attachment to Form 327.

(d) Filing locations. You must apply

for a permit or file a Notice at one of the

following locations:

(1) For the OCS off the State of

Alaska—the Regional Supervisor for

Resource Evaluation, Minerals

Management Service, Alaska OCS

Region, 949 East 36th Avenue,

Anchorage, Alaska 99508–4302.

(2) For the OCS off the Atlantic Coast

and in the Gulf of Mexico—the Regional

Supervisor for Resource Evaluation,

Minerals Management Service, Gulf of

Mexico OCS Region, 1201 Elmwood

Park Boulevard, New Orleans, Louisiana

70123–2394.

(3) For the OCS off the coast of the

States of California, Oregon,

Washington, or Hawaii—the Regional

Supervisor for Resource Evaluation,

Minerals Management Service, Pacific

OCS Region, 770 Paseo Camarillo,

Camarillo, California 93010–6064.

§ 251.6 Obligations and rights under a

permit or a Notice.

While conducting G&G exploration or

scientific research activities under MMS

permit or Notice:

(a) You must not:

(1) Interfere with or endanger

operations under any lease, right-ofway, easement, right-of-use, Notice, or

permit issued or maintained under the

Act;

(2) Cause harm or damage to life

(including fish and other aquatic life),

property, or to the marine, coastal, or

human environment;

(3) Cause harm or damage to any

mineral resource (in areas leased or not

leased);

(4) Cause pollution;

(5) Disturb archaeological resources;

(6) Create hazardous or unsafe

conditions; or

(7) Unreasonably interfere with or

cause harm to other uses of the area.

(b) You must immediately report to

the Regional Director if you:

(1) Detect hydrocarbon occurrences;

(2) Detect environmental hazards

which imminently threaten life and

property; or

(3) Adversely affect the environment,

aquatic life, archaeological resources, or

other uses of the area where you are

conducting exploration or scientific

research activities.

(c) You must also consult and

coordinate your G&G activities with

other users of the area for navigation

and safety purposes.

(d) Any persons conducting shallow

test drilling or deep stratigraphic test

drilling activities under a permit must

use the best available and safest

technologies that the Regional Director

determines to be economically feasible.

(e) You may not claim any oil, gas,

sulphur, or other minerals you discover

while conducting operations under a

permit or Notice.

§ 251.7 Test drilling activities under a

permit.

(a) Shallow test drilling. Before you

begin shallow test drilling under a

permit, the Regional Director may

require you to:

(1) Gather and submit seismic,

bathymetric, sidescan sonar,

magnetometer, or other geophysical data

and information to determine shallow

structural detail across and in the

vicinity of the proposed test.

(2) Submit information for coastal

zone consistency certification according

to paragraphs (b)(3) and (b)(4) of this

section, and for protecting

archaeological resources according to

paragraph (b)(5) of this section.

(3) Allow all interested parties the

opportunity to participate in the

shallow test according to paragraph (c)

of this section, and meet bonding

requirements according to paragraph (d)

of this section.

(b) Deep stratigraphic tests. You must

submit to the appropriate Regional

Director, at the address given in § 251.5,

a drilling plan, an environmental report,

and an application for permit to drill

(Form MMS–123) as follows:

(1) Drilling plan. The drilling plan

must include:

(i) The proposed type, sequence, and

timetable of drilling activities;

(ii) A description of your drilling rig,

indicating the important features with

special attention to safety, pollution

prevention, oil-spill containment and

cleanup plans, and onshore disposal

procedures;
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67287

(iii) The location of each deep

stratigraphic test you will conduct,

including the location of the surface and

projected bottomhole of the borehole;

(iv) The types of geological and

geophysical survey instruments you will

use before and during drilling;

(v) Seismic, bathymetric, sidescan

sonar, magnetometer, or other

geophysical data and information

sufficient to evaluate seafloor

characteristics, shallow geologic

hazards, and structural detail across and

in the vicinity of the proposed test to

the total depth of the proposed test well;

and

(vi) Other relevant data and

information that the Regional Director

requires.

(2) Environmental report. The

environmental report must include all

of the following material:

(i) A summary with data and

information available at the time you

submitted the related drilling plan.

MMS will consider site-specific data

and information developed since the

most recent environmental impact

statement or other environmental

impact analysis in the immediate area.

The summary must meet the following

requirements:

(A) You must concentrate on the

issues specific to the site(s) of drilling

activity. However, you only need to

summarize data and information

discussed in any environmental reports,

analyses, or impact statements prepared

for the geographic area of the drilling

activity.

(B) You must list referenced material.

Include brief descriptions and a

statement of where the material is

available for inspection.

(C) You must refer only to data that

are available to MMS.

(ii) Details about your project such as:

(A) A list and description of new or

unusual technologies;

(B) The location of travel routes for

supplies and personnel;

(C) The kinds and approximate levels

of energy sources;

(D) The environmental monitoring

systems; and

(E) Suitable maps and diagrams

showing details of the proposed project

layout.

(iii) A description of the existing

environment. For this section, you must

include the following information on

the area:

(A) Geology;

(B) Physical oceanography;

(C) Other uses of the area;

(D) Flora and fauna;

(E) Existing environmental monitoring

systems; and

(F) Other unusual or unique

characteristics that may affect or be

affected by the drilling activities.

(iv) A description of the probable

impacts of the proposed action on the

environment and the measures you

propose for mitigating these impacts.

(v) A description of any unavoidable

or irreversible adverse effects on the

environment that could occur.

(vi) Other relevant data that the

Regional Director requires.

(3) Copies for coastal States. You

must submit copies of the drilling plan

and environmental report to the

Regional Director for transmittal to the

Governor of each affected coastal State

and the coastal zone management

agency of each affected coastal State that

has an approved program under the

Coastal Zone Management Act. (The

Regional Director will make the drilling

plan and environmental report available

to appropriate Federal agencies and the

public according to the Department of

the Interior’s policies and procedures).

(4) Certification of coastal zone

management program consistency and

State concurrence. When required

under an approved coastal zone

management program of an affected

State, your drilling plan must include a

certification that the proposed activities

described in the plan comply with

enforceable policies of, and will be

conducted in a manner consistent with

such State’s program. The Regional

Director may not approve any of the

activities described in the drilling plan

unless the State concurs with the

consistency certification or the

Secretary of Commerce makes the

finding authorized by section

307(c)(3)(B)(iii) of the Coastal Zone

Management Act.

(5) Protecting archaeological

resources. If the Regional Director

believes that an archaeological resource

may exist in the area that may be

affected by drilling, the Regional

Director will notify you of the need to

prepare an archaeological report.

(i) If the evidence suggests that an

archaeological resource may be present,

you must:

(A) Locate the site of the drilling so

as to not adversely affect the area where

the archaeological resources may be, or

(B) Establish to the satisfaction of the

Regional Director that an archaeological

resource does not exist or will not be

adversely affected by drilling. This must

be done by further archaeological

investigation, conducted by an

archaeologist and a geophysicist, using

survey equipment and techniques

deemed necessary by the Regional

Director. A report on the investigation

must be submitted to the Regional

Director for review.

(ii) If the Regional Director determines

that an archaeological resource is likely

to be present in the area that may be

affected by drilling, and may be

adversely affected by drilling, the

Regional Director will notify you

immediately. You must take no action

that may adversely affect the

archaeological resource unless further

investigations determine that the

resource is not archaeologically

significant.

(iii) If you discover any archaeological

resource while drilling, you must

immediately halt drilling and report the

discovery to the Regional Director. If

investigations determine that the

resource is significant, the Regional

Director will inform you how to protect

it.

(6) Application for permit to drill

(APD). Before commencing deep

stratigraphic test drilling activities

under an approved drilling plan, you

must submit an APD (Form MMS–123)

and receive approval. You must comply

with all regulations relating to drilling

operations in 30 CFR part 250.

(7) Revising an approved drilling

plan. Before you revise an approved

drilling plan, you must obtain the

Regional Director’s approval.

(8) After drilling. When you complete

the test activities, you must

permanently plug and abandon the

boreholes of all deep stratigraphic tests

in compliance with 30 CFR part 250. If

the tract on which you conducted a

deep stratigraphic test is leased to

another party for exploration and

development, and if the lessee has not

disturbed the borehole, MMS will hold

you and not the lessee responsible for

problems associated with the test hole.

(9) Deadline for completing a deep

stratigraphic test. If your deep

stratigraphic test well is within 50

geographic miles of a tract that MMS

has identified for a future lease sale, as

listed on the currently approved OCS

leasing schedule, you must complete all

drilling activities and submit the data

and information to the Regional Director

at least 60 days before the first day of

the month in which MMS schedules the

lease sale. However, the Regional

Director may extend your permit

duration to allow you to complete

drilling activities and submit data and

information if the extension is in the

national interest.

(c) Group participation in test drilling.

MMS encourages group participation for

deep stratigraphic tests.

(1) Purpose of group participation.

The purpose is to minimize duplicative
67288 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

G&G activities involving drilling into

the seabed of the OCS.

(2) Providing opportunity for

participation in a deep stratigraphic

test. When you propose to drill a deep

stratigraphic test, you must give all

interested persons an opportunity to

participate in the test drilling through a

signed agreement on a cost-sharing

basis. You may include a penalty for

late participation of not more than 100

percent of the cost to each original

participant in addition to the original

share cost.

(i) The participants must assess and

distribute late participation penalties in

accordance with the terms of the

agreement.

(ii) For a significant hydrocarbon

occurrence that the Regional Director

announces to the public, the penalty for

subsequent late participants may be

raised to not more than 300 percent of

the cost of each original participant in

addition to the original share cost.

(3) Providing opportunity for

participation in a shallow test drilling

project. When you apply to conduct

shallow test drilling activities, you

must, if ordered by the Regional

Director or required by the permit, give

all interested persons an opportunity to

participate in the test activity on a costsharing basis. You may include a

penalty provision for late participation

of not more than 50 percent of the cost

to each original participant in addition

to the original share cost.

(4) Procedures for group participation

in drilling activities. You must:

(i) Publish a summary statement that

describes the approved activity in a

relevant trade publication;

(ii) Forward a copy of the published

statement to the Regional Director;

(iii) Allow at least 30 days from the

summary statement publication date for

other persons to join as original

participants;

(iv) Compute the estimated cost by

dividing the estimated total cost of the

program by the number of original

participants; and

(v) Furnish the Regional Director with

a complete list of all participants before

starting operations, or at the end of the

advertising period if you begin

operations before the advertising period

is over. The names of any subsequent or

late participants must also be furnished

to the Regional Director.

(5) Changes to the original application

for test drilling. If you propose changes

to the original application and the

Regional Director determines that the

changes are significant, the Regional

Director will require you to publish the

changes for an additional 30 days to

give other persons a chance to join as

original participants.

(d) Bonding requirements. You must

submit a bond under this part before

you may start a deep stratigraphic test.

(1) Before MMS issues a permit

authorizing the drilling of a deep

stratigraphic test, you must either:

(i) Furnish to MMS a bond of not less

than $200,000 that guarantees

compliance with all the terms and

conditions of the permit; or

(ii) Maintain a $1 million bond that

guarantees compliance with all the

terms and conditions of the permit you

hold for the OCS area where you

propose to drill.

(2) You must provide additional

security to MMS if the Regional Director

determines that it is necessary for the

permit or area.

(3) The Regional Director may require

you to provide a bond, in an amount the

Regional Director prescribes, before

authorizing you to drill a shallow test

well.

(4) Your bond must be on a form

approved by the Associate Director for

Offshore Minerals Management.

§ 251.8 Inspection and reporting

requirements for activities under a permit.

(a) Inspection of permit activities. You

must allow MMS representatives to

inspect your exploration or scientific

research activities under a permit. They

will determine whether operations are

adversely affecting the environment,

aquatic life, archaeological resources, or

other uses of the area. MMS will

reimburse you for food, quarters, and

transportation that you provide for

MMS representatives if you send in

your reimbursement request to the

Region that issued the permit within 90

days of the inspection.

(b) Approval for modifications. Before

you begin modified operations, you

must submit a written request

describing the modifications and receive

the Regional Director’s oral or written

approval. If circumstances preclude a

written request, you must make an oral

request and follow up in writing.

(c) Reports. (1) You must submit

status reports on a schedule specified in

the permit and include a daily log of

operations.

(2) You must submit a final report of

exploration or scientific research

activities under a permit within 30 days

after the completion of acquisition

activities under the permit. You may

combine the final report with the last

status report and must include each of

the following:

(i) A description of the work

performed.

(ii) Charts, maps, plats, and digital

navigational data in a format specified

by the Regional Director, showing the

areas and blocks in which any

exploration or permitted scientific

research activities were conducted.

Identify the lines of geophysical

traverses and their locations including a

reference sufficient to identify the data

produced during each activity.

(iii) The dates on which you

conducted the actual exploration or

scientific research activities.

(iv) A summary of any:

(A) Hydrocarbon or sulphur

occurrences encountered;

(B) Environmental hazards; and

(C) Adverse effects of the exploration

or scientific research activities on the

environment, aquatic life,

archaeological resources, or other uses

of the area in which the activities were

conducted.

(v) Other descriptions of the activities

conducted as specified by the Regional

Director.

§ 251.9 Temporarily stopping, canceling,

or relinquishing activities approved under a

permit.

(a) MMS may temporarily stop

exploration or scientific research

activities under a permit when the

Regional Director determines that:

(1) Activities pose a threat of serious,

irreparable, or immediate harm. This

includes damage to life (including fish

and other aquatic life), property, any

mineral deposit (in areas leased or not

leased), to the marine, coastal, or human

environment, or to an archaeological

resource;

(2) You failed to comply with any

applicable law, regulation, order, or

provision of the permit. This would

include MMS’ required submission of

reports, well records or logs, and G&G

data and information within the time

specified; or

(3) Stopping the activities is in the

interest of national security or defense.

(b) Procedures to temporarily stop

activities. (1) The Regional Director will

advise you either orally or in writing.

MMS will confirm an oral notification

in writing and deliver all written

notifications by courier or certified or

registered mail. You must halt all

activities under a permit as soon as you

receive an oral or written notification.

(2) The Regional Director will advise

you when you may start your permit

activities again.

(c) Procedure to cancel or relinquish

a permit. The Regional Director may

cancel, or a permittee may relinquish, a

permit at any time.

(1) If MMS cancels your permit, the

Regional Director will advise you by

certified or registered mail 30 days

before the cancellation date and will

state the reason.
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67289

(2) You may relinquish the permit by

advising the Regional Director by

certified or registered mail 30 days in

advance.

(3) After MMS cancels your permit or

you relinquish it, you are still

responsible for proper abandonment of

any drill sites in accordance with the

requirements of § 251.7(b)(8). You must

also comply with all other obligations

specified in this part or in the permit.

§ 251.10 Penalties and appeals.

(a) Penalties for noncompliance under

a permit issued by MMS. You are subject

to the penalty provisions of: (1) Section

24 of the Act (43 U.S.C. 1350); and (2)

The procedures contained in 30 CFR

part 250, subpart N, for noncompliance

with: (i) Any provision of the Act; (ii)

Any provision of a G&G or drilling

permit; or (iii) Any regulation or order

issued under the Act.

(b) Penalties under other laws and

regulations. The penalties prescribed in

this section are in addition to any other

penalty imposed by any other law or

regulation.

(c) Procedures to appeal orders or

decisions MMS issues. You may appeal

any orders or decisions that MMS issues

under the regulations in this part by

referring to 30 CFR part 290. When you

file an appeal with the Director, you

must continue to follow all

requirements for compliance with an

order or decision other than payment of

a civil penalty.

§ 251.11 Submission, inspection, and

selection of geological data and information

collected under a permit and processed by

permittees or third parties.

(a) Availability of geological data and

information collected under a permit.

(1) You must notify the Regional

Director, in writing, when you complete

the initial analysis, processing, or

interpretation of any geological data and

information. Initial analysis and

processing are the stages of analysis or

processing where the data and

information first become available for

in-house interpretation by the permittee,

or become available commercially to

third parties via sale, trade, license

agreement, or other means.

(2) The Regional Director may ask if

you have further analyzed, processed, or

interpreted any geological data and

information. When so asked, you must

respond to MMS in writing within 30

days.

(b) Submission, inspection, and

selection of geological data and

information. The Regional Director may

request the permittee or third party to

submit the analyzed, processed, and

interpreted geologic data and

information for inspection and/or

permanent retention by MMS. The data

and information must be submitted

within 30 days after such request.

(c) Requirements for submission of

geological data and information

collected under a permit. Unless the

Regional Director specifies otherwise,

geological data and information must

include:

(1) An accurate and complete record

of all geological (including geochemical)

data and information describing each

operation of analysis, processing, and

interpretation;

(2) Paleontological reports identifying

microscopic fossils by depth, including

the reference datum to which

paleontological sample depths are

related and, if the Regional Director

requests, washed samples that you

maintain for paleontological

determinations;

(3) Copies of well logs or charts in a

digital format, if available;

(4) Results and data obtained from

formation fluid tests;

(5) Analyses of core or bottom

samples and/or a representative cut or

split of the core or bottom sample;

(6) Detailed descriptions of any

hydrocarbons or hazardous conditions

encountered during operations,

including near losses of well control,

abnormal geopressures, and losses of

circulation; and

(7) Other geological data and

information that the Regional Director

may specify.

(d) Obligations when geological data

and information collected under permit

are obtained by a third party. A third

party may obtain geological data and

information from a permittee, or from

another third party, by sale, trade,

license agreement, or other means. If

this happens:

(1) The third party recipient of the

data and information assumes the

obligations under this section, except

for the notification provisions of

paragraph (a)(1), and is subject to the

penalty provisions of 30 CFR part 250,

subpart N; and

(2) A permittee or third party that

sells, trades, licenses, or otherwise

provides data and information to a third

party must advise the recipient, in

writing, that accepting these obligations

is a condition precedent of the sale,

trade, license, or other agreement; and

(3) Except for license agreements, a

permittee or third party that sells,

trades, or otherwise provides data and

information to a third party must advise

the Regional Director, in writing and

within 30 days, of the sale, trade, or

other agreement, including the identity

of the recipient of the data and

information; or

(4) For license agreements a permittee

or third party that licenses data and

information to a third party must,

within 30 days of a request by the

Regional Director, advise the Regional

Director, in writing, of the license

agreement, including the identity of the

recipient of the data and information.

§ 251.12 Submission, inspection, and

selection of geophysical data and

information collected under a permit and

processed by permittees or third parties.

(a) Availability of geophysical data

and information collected under a

permit. (1) You must notify the Regional

Director, in writing, when you complete

the initial processing and interpretation

of any geophysical data and

information. Initial processing is the

stage of processing where the data and

information become available for inhouse interpretation by the permittee, or

become available commercially to third

parties via sale, trade, license

agreement, or other means.

(2) The Regional Director may ask if

you have further processed or

interpreted any geophysical data and

information. When so asked, you must

respond to MMS in writing within 30

days.

(b) Submission, inspection and

selection of geophysical data and

information collected under a permit.

The Regional Director may request that

the permittee or third party submit

geophysical data and information before

making a final selection for retention.

MMS representatives may inspect and

select the data and information on your

premises, or the Regional Director can

request delivery of the data and

information to the appropriate MMS

regional office for review.

(1) You must submit the geophysical

data and information within 30 days of

receiving the request, unless the

Regional Director extends the delivery

time.

(2) At any time before final selection,

the Regional Director may return any or

all geophysical data and information

following review. You will be notified

in writing of all or portions of those data

the Regional Director decides to retain.

(c) Requirements for submission of

geophysical data and information

collected under a permit. Unless the

Regional Director specifies otherwise,

you must include:

(1) An accurate and complete record

of each geophysical survey conducted

under the permit, including digital

navigational data and final location

maps;
67290 Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations

(2) All seismic data collected under a

permit presented in a format and of a

quality suitable for processing;

(3) Processed geophysical information

derived from seismic data with

extraneous signals and interference

removed, presented in a quality format

suitable for interpretive evaluation,

reflecting state-of-the-art processing

techniques; and

(4) Other geophysical data, processed

geophysical information, and

interpreted geophysical information

including, but not limited to, shallow

and deep subbottom profiles,

bathymetry, sidescan sonar, gravity and

magnetic surveys, and special studies

such as refraction and velocity surveys.

(d) Obligations when geophysical data

and information collected under a

permit are obtained by a third party. A

third party may obtain geophysical data,

processed geophysical information, or

interpreted geophysical information

from a permittee, or from another third

party, by sale, trade, license agreement,

or other means. If this happens:

(1) The third party recipient of the

data and information assumes the

obligations under this section, except

for the notification provisions of

paragraph (a)(1), and is subject to the

penalty provisions of 30 CFR part 250,

subpart N; and

(2) A permittee or third party that

sells, trades, licenses, or otherwise

provides data and information to a third

party must advise the recipient, in

writing, that accepting these obligations

is a condition precedent of the sale,

trade, license, or other agreement; and

(3) Except for license agreements, a

permittee or third party that sells,

trades, or otherwise provides data and

information to a third party must advise

the Regional Director, in writing and

within 30 days, of the sale, trade, or

other agreement, including the identity

of the recipient of the data and

information; or

(4) For license agreements, a

permittee or third party that licenses

data and information to a third party

must, within 30 days of a request by the

Regional Director, advise the Regional

Director, in writing, of the license

agreement, including the identity of the

recipient of the data and information.

§ 251.13 Reimbursement for the costs of

reproducing data and information and

certain processing costs.

(a) MMS will reimburse you or a third

party for reasonable costs of

reproducing data and information that

the Regional Director requests if:

(1) You deliver G&G data and

information to MMS for the Regional

Director to inspect or select and retain

(according to §§ 251.11 or 251.12 );

(2) MMS receives your request for

reimbursement and the Regional

Director determines that the requested

reimbursement is proper; and

(3) The cost is at your lowest rate (or

a third party’s) or at the lowest

commercial rate established in the area,

whichever is less.

(b) MMS will reimburse you or the

third party for the reasonable costs of

processing geophysical information

(which does not include cost of data

acquisition):

(1) If, at the request of the Regional

Director, you processed the geophysical

data or information in a form or manner

other than that used in the normal

conduct of business; or

(2) If you collected the information

under a permit that MMS issued to you

before October 1, 1985, and the Regional

Director requests and retains the

information.

(c) When you request reimbursement,

you must identify reproduction and

processing costs separately from

acquisition costs.

(d) MMS will not reimburse you or a

third party for data acquisition costs or

for the costs of analyzing or processing

geological information or interpreting

geological or geophysical information.

§ 251.14 Protecting and disclosing data

and information submitted to MMS under a

permit.

(a) Disclosure of data and information

to the public by MMS. (1) In making data

and information available to the public,

the Regional Director will follow the

applicable requirements of:

(i) The Freedom of Information Act (5

U.S.C. 552);

(ii) The implementing regulations at

43 CFR part 2;

(iii) The Act; and

(iv) The regulations at 30 CFR parts

250 and 252.

(2) Except as specified in this section

or in 30 CFR parts 250 and 252, if the

Regional Director determines any data

or information is exempt from public

disclosure under paragraph (a) of this

section, MMS will not provide the data

and information to any State or to the

executive of any local government or to

the public, unless you and all third

parties agree to the disclosure.

(3) MMS will keep confidential the

identity of third party recipients of data

and information collected under a

permit. MMS will not release the

identity unless you and the third parties

agree to the disclosure.

(4) When you detect any significant

hydrocarbon occurrences or

environmental hazards on unleased

lands during drilling operations, the

Regional Director will immediately

issue a public announcement. The

announcement must further the national

interest, but without unduly damaging

your competitive position.

(b) Timetable for release of G&G data

and information that MMS acquires.

MMS will release data and information

that you or a third party submits and

MMS retains, in accordance with

paragraphs (b)(1) and (b)(2) of this

section.

(1) If the data and information are not

related to a deep stratigraphic test, MMS

will release them to the public in

accordance with the following table:

If you or a third party

submit and MMS retains

The Regional Director

will disclose them to

the public

Geological data and

information.

10 years after issuing

the permit.

Geophysical data ...... 50 years after you or

a third party submit

the data.

Geophysical information.25 years after you or

a third party submit

the information.

(2) If the data and information are

related to a deep stratigraphic test, MMS

will release them to the public at the

earlier of the following times:

(i) Twenty-five years after you

complete the test; or

(ii) If a lease sale is held after you

complete a test well, 60 calendar days

after MMS issues the first lease, any

portion of which is located within 50

geographic miles (92.7 kilometers) of the

test.

(c) Procedure that MMS follows to

disclose acquired data and information

to a contractor for reproduction,

processing, and interpretation.

(1) When practical, the Regional

Director will advise the person who

submitted data and information under

§§ 251.11 or 251.12 of the intent to

disclose the data or information to an

independent contractor or agent.

(2) The person so notified will have

at least 5 working days to comment on

the action.

(3) When the Regional Director

advises the person who submitted the

data and information, all other owners

of the data or information will be

considered to have been so notified.

(4) Before disclosure, the contractor or

agent must sign a written commitment

not to sell, trade, license, or disclose

data or information to anyone without

the Regional Director’s consent.

(d) Sharing data and information with

coastal States. (1) When MMS solicits

nominations for leasing lands located

within 3 geographic miles (5.6
Federal Register / Vol. 62, No. 247 / Wednesday, December 24, 1997 / Rules and Regulations 67291

kilometers) of the seaward boundary of

any coastal State, the Regional Director,

in accordance with 30 CFR 252.7 (a)(4)

and (b) and subsections 8(g) and 26(e)

of the Act (43 U.S.C. 1337(g) and

1352(e)), will provide the Governor

with:

(i) All information on the

geographical, geological, and ecological

characteristics of the areas and regions

MMS proposes to offer for lease;

(ii) An estimate of the oil and gas

reserves in the areas proposed for

leasing; and

(iii) An identification of any field,

geological structure, or trap on the OCS

within 3 geographic miles (5.6

kilometers) of the seaward boundary of

the State.

(2) After receiving nominations for

leasing an area of the OCS within 3

geographic miles of the seaward

boundary of any coastal State, MMS will

carry out a tentative area identification

according to 30 CFR part 256, subparts

D and E. At that time, the Regional

Director will consult with the Governor

to determine whether any tracts further

considered for leasing may contain any

oil or gas reservoirs that underlie both

the OCS and lands subject to the

jurisdiction of the State.

(3) Before a sale, if a Governor

requests, the Regional Director, in

accordance with 30 CFR 252.7(a)(4) and

(b) and sections 8(g) and 26(e) of the Act

(43 U.S.C. 1337(g) and 1352(e)), will

share with the Governor information

that identifies potential and/or proven

common hydrocarbon bearing areas

within 3 geographic miles of the

seaward boundary of that State.

(4) Information received and

knowledge gained by a State official

under paragraph (d) of this section is

subject to applicable confidentiality

requirements of:

(i) The Act; and

(ii) The regulations at 30 CFR parts

250, 251, and 252.

§ 251.15 Authority for information

collection.

(a) The Office of Management and

Budget has approved the information

collection requirements in this part

under 44 U.S.C. 3501 et seq. and

assigned OMB control number 1010–

0048. The title of this information

collection is ‘‘30 CFR Part 251,

Geological and Geophysical (G&G)

Explorations of the OCS.’’

(b) We may not conduct or sponsor,

and you are not required to respond to,

a collection of information unless it

displays a currently valid OMB control

number.

(c) We use the information collected

under this part to:

(1) Evaluate permit applications and

monitor scientific research activities for

environmental and safety reasons.

(2) Determine that explorations do not

harm resources, result in pollution,

create hazardous or unsafe conditions,

or interfere with other users in the area.

(3) Approve reimbursement of certain

expenses.

(4) Monitor the progress and activities

carried out under an OCS G&G permit.

(5) Inspect and select G&G data and

information collected under an OCS

G&G permit.

(d) Respondents are Federal OCS

permittees and Notice filers. Responses

are mandatory or are required to obtain

or retain a benefit. We will protect

information considered proprietary

under applicable law and under

regulations at § 251.14 and part 250 of

this chapter.

(e) Send comments regarding any

aspect of the collection of information

under this part, including suggestions

for reducing the burden, to the

Information Collection Clearance

Officer, Minerals Management Service,

Mail Stop 4230, 1849 C Street, N.W.,

Washington, D.C. 20240; and to the

Office of Information and Regulatory

Affairs, Office of Management and

Budget, Attention: Desk Officer for the

Department of the Interior (1010–0048),

725 17th Street, N.W., Washington, D.C.

20503.

[FR Doc. 97–33530 Filed 12–23–97; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF DEFENSE

Defense Special Weapons Agency

32 CFR Part 318

[DSWA Instruction 5400.11B]

Defense Special Weapons Agency

Privacy Program

AGENCY: Defense Special Weapons

Agency, DOD.

ACTION: Final rule.

SUMMARY: The Defense Special Weapons

Agency (DSWA) is adding two sections

to its procedural rule for the DSWA

Privacy Program. The two sections are

entitled Disclosure of record to persons

other than the individual to whom it

pertains and Fees. The addition of these

two sections helps an individual to

better understand the DSWA Privacy

Program.

EFFECTIVE DATE: December 3, 1997.

ADDRESSES: General Counsel, Defense

Special Weapons Agency, 6801

Telegraph Road, Alexandria, VA 22310–

3398.

FOR FURTHER INFORMATION CONTACT: Mrs.

Sandy Barker at (703) 325–7681.

SUPPLEMENTARY INFORMATION:

Executive Order 12866. It has been

determined that this Privacy Act rule for

the Department of Defense does not

constitute ‘significant regulatory action’.

Analysis of the rule indicates that it

does not have an annual effect on the

economy of $100 million or more; does

not create a serious inconsistency or

otherwise interfere with an action taken

or planned by another agency; does not

materially alter the budgetary impact of

entitlements, grants, user fees, or loan

programs or the rights and obligations of

recipients thereof; does not raise novel

legal or policy issues arising out of legal

mandates, the President’s priorities, or

the principles set forth in Executive

Order 12866 (1993).

Regulatory Flexibility Act. It has been

determined that this Privacy Act rule for

the Department of Defense does not

have significant economic impact on a

substantial number of small entities

because it is concerned only with the

administration of Privacy Act systems of

records within the Department of

Defense.

Paperwork Reduction Act. It has been

determined that the Privacy Act rule for

the Department of Defense imposes no

information requirements beyond the

Department of Defense and that the

information collected within the

Department of Defense is necessary and

consistent with 5 U.S.C. 552a, known as

the Privacy Act of 1974.

The Defense Special Weapons Agency

is adopting the changes previously

published as a proposed rule on October

3, 1997, at 62 FR 51821. No comments

were received, therefore, the Defense

Special Weapons Agency is adopting

the rule as previously published.

List of Subjects in 32 CFR Part 318

Privacy.

Accordingly, the Defense Special

Weapons Agency amends 32 CFR part

318 as follows:

PART 318–DEFENSE SPECIAL

WEAPONS AGENCY PRIVACY

PROGRAM-[AMENDED]

1. The authority citation for 32 CFR

part 318 continues to read as follows:

AUTHORITY: Pub. L. 93–579, 88 Stat.

1896 (5 U.S.C. 552a).

2. Section 318.9 is redesignated as

318.11.

3. Sections 318.9 and 318.10 are

added as follows: