[Federal Register Volume 77, Number 61 (Thursday, March 29, 2012)]
[Rules and Regulations]
[Pages 18916-18922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7324]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID BSEE-2012-0003]
RIN 1014-AA01


Production Measurement Documents Incorporated by Reference

AGENCY: Bureau of Safety and Environmental Enforcement (BSEE), 
Interior.

ACTION: Final rule.

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SUMMARY: BSEE is establishing a final rule to incorporate by reference 
12 additional production measurement industry standards into the 
regulations governing oil, gas, and sulphur operations in the Outer 
Continental Shelf. Incorporation of these production measurement 
standards provides industry with up-to-date standards for measuring oil 
and gas production volumes. This rule will result in more accurate and 
efficient measurement of oil and gas production.

DATES: Effective Date: This final rule becomes effective on May 29, 
2012. The incorporation by reference of certain publications listed in 
the rule is approved by the Director of the Federal Register as of May 
29, 2012.

FOR FURTHER INFORMATION CONTACT: Wilbon Rhome, Regulations and 
Standards Branch, at <a href="/cdn-cgi/l/email-protection#7b2c121719141555291314161e3b39283e3e551c140d"><span class="__cf_email__" data-cfemail="c592aca9a7aaabeb97adaaa8a08587968080eba2aab3">[email protected]</span></a>, 703-787-1587.

SUPPLEMENTARY INFORMATION: This Final Rule falls under the authority of 
BSEE and as such, new Regulation Identifier Number (RIN) and Docket ID 
numbers were assigned to this rulemaking. The new RIN for this Final 
Rule is 1014-AA01, will replace RIN 1010-AD53 from the proposed rule. 
The Docket is now BSEE-2012-0003, replacing BOEM-2010-0033.
    BSEE uses standards, specifications, and recommended practices 
developed by standard-setting organizations and the oil and gas 
industry as a means of establishing requirements for activities in the 
Outer Continental Shelf (OCS). This practice, known as incorporation by 
reference, allows BSEE to incorporate the requirements of technical 
documents into the regulations at 30 CFR 250.198 without increasing the 
volume of the Code of Federal Regulations (CFR).
    The regulations found at 1 CFR part 51 govern how BSEE and other 
Federal agencies incorporate by reference the requirements found in 
various documents. Agencies can incorporate by reference only through 
publication in the Federal Register. Agencies must also obtain approval 
from the Director of the Federal Register for each publication 
incorporated by reference. Incorporation by reference of a document or 
publication is limited to the edition of the document or publication 
cited in the regulations. Accordingly, newer editions, amendments, or 
revisions to documents already incorporated by reference in regulations 
are not part of BSEE regulations.
    In some cases, BSEE may not agree with a standard or a specific 
section in a standard. As a result, a standard may not be included in 
the regulations at all or only a portion may be included.

Why Technical Standards Are Important

    Industry standards incorporated in BSEE regulations are invaluable 
for a variety of reasons. In some instances they enable us to avoid 
unnecessarily detailed regulations. They have helped us to evolve from 
a regulatory process that reacts to inadequacies in OCS operations to a 
more orderly process that recognizes technical innovation and 
progressive ideas aimed at improving performance, safety, and 
efficiencies. Industry standards are also important because the law 
mandates their use by Federal agencies under certain circumstances.

Legal and Policy Mandates

    Legal and Policy mandates to Federal agencies, including BSEE, to 
use industry standards include the following:
    <bullet> In October 1993, the Office of Management and Budget (OMB) 
issued a revised Circular A-119 entitled, ``Federal Participation in 
the Development and Use of Voluntary Standards''. This Circular 
established the policy for participation by Federal employees in the 
development of technical standards and the use of voluntary standards 
by Federal agencies.
    <bullet> In March 1996, President Clinton codified this OMB policy 
into Federal

[[Page 18917]]

law when he signed the National Technology Transfer and Advancement Act 
(NTTAA). This Act requires Federal agencies to achieve greater reliance 
on technical standards developed or adopted by voluntary consensus 
bodies, that are consistent with the agency's mission, with lessened 
dependence on in-house regulations.
    <bullet> A final revision of OMB Circular A-119 was issued 
effective February 19, 1998. The Circular now directs agencies to use 
voluntary consensus standards in lieu of government-unique standards 
except where inconsistent with law or otherwise impractical. The 
policies in this Circular are intended to reduce to a minimum the 
reliance by agencies on government-unique standards.

Summary of Documents Incorporated by Reference in This Rule

    BSEE is incorporating the requirements found in 12 measurement 
documents (nine American Petroleum Institute (API) and three American 
Gas Association (AGA) documents) to add the most current and updated 
measurement standards to provide industry with up-to-date guidance for 
measurement technology. The incorporation of these additional standards 
will promote the use of the best available and most accurate 
measurement technologies while operating in the OCS.
    Measurement documents were chosen for incorporation into the 
regulations based on the latest technological advances introduced in 
these standards and highlighted in the synopsis below. BSEE, with the 
cooperation of independent reviewers from industry and academia, 
reviewed and commented on the contents of these documents in the course 
of their development. To ensure as consistent an approach as possible 
to onshore and offshore oil and gas measurement regulations the 
Department of the Interior's Gas and Oil Measurement Team (GOMT) 
reviewed the standards proposed for incorporation in this final rule. 
The GOMT, composed of BLM and BSEE oil and gas measurement experts, was 
established in August 2010 to provide technical and regulatory 
expertise to help ensure that oil and gas produced from Federal and 
Indian leases are accurately measured and properly reported and to 
provide greater regulatory consistency within the Department where 
possible.
    Based on its review, BSEE determined that three of the standards in 
the proposed rule would not be included in this final rule. These 
standards may be further considered in subsequent rulemakings. The 
following three API standards are not included in this Final Rule 
because they are generally not applicable to offshore operations:
    <bullet> API MPMS Chapter 2.2E--Petroleum and Liquid Petroleum 
Products--Calibration of Horizontal Cylindrical Tanks-Part 1: Manual 
Methods, First Edition, April 2004, ISO 12917-1: 2002 (Identical), 
Petroleum and liquid petroleum products--Calibration of horizontal 
cylindrical tanks--Part 1: Manual methods;
    <bullet> API MPMS Chapter 2.2F--Petroleum and Liquid Petroleum 
Products--Calibration of Horizontal Cylindrical Tanks--Part 2: Internal 
Electro-optical Distance-Ranging Method, First Edition, April 2004, ISO 
12917-2:2002 (Identical), Petroleum and liquid petroleum products--
Calibration of horizontal cylindrical tanks--Part 2: Internal electro-
optical distance-ranging method; and
    <bullet> API MPMS Chapter 12--Manual of Petroleum Measurement 
Standards Chapter 12--Calculation of Petroleum Quantities, Section 2--
Calculation of Petroleum Quantities Using Dynamic Measurement Methods 
and Volumetric Correction Factors, Part 5--Calculation of Base Prover 
Volume by Master Meter Method; First Edition, September 2001; 
Reaffirmed October 2006.
    BSEE regularly participates in the reviews, revisions, and updates 
of standards to determine if additional versions should be incorporated 
into our regulations. Additions may be necessary because of changes in 
technology, environmental concerns, or operational incidents or trends 
in industry. Also, BSEE may request that a standard-writing body 
develop a new standard based on incident analysis or due to the 
introduction of new exploration or production techniques or new 
technologies.
    BSEE has reviewed the following requirements in the nine documents 
discussed below and has decided to incorporate the documents into the 
regulations at 30 CFR part 250 to ensure that industry uses the best 
available and most accurate measurement technologies. BSEE review shows 
that using the standards contained in these documents will not impose 
significant additional costs on the offshore oil and gas industry.
    A summary of BSEE's review of the documents is provided below:
    <bullet> AGA Report No. 7--Measurement of Natural Gas by Turbine 
Meters; Revised February 2006:
    This standard applies to the installation, calibration, and 
operation of axial-flow turbine flow meters for measurement of natural 
gas, typically 2-inch and larger bore diameter, in which the entire gas 
stream flows through the meter rotor. Typical applications include 
measuring single-phase gas flow found in production, process, 
transmission, storage, distribution, and end-use gas measurement 
systems.
    <bullet> AGA Report No. 9--Measurement of Gas by Multipath 
Ultrasonic Meters; Second Edition, April 2007:
    This standard describes the optimum conditions and best practices 
for multipath ultrasonic transit-time flow meters used for the 
measurement of natural gas. Multipath ultrasonic meters have at least 
two independent pairs of measuring transducers (acoustic paths). 
Typical applications include measuring the flow of gas through 
production facilities, transmission pipelines, storage facilities, 
distribution systems, and large end-use customer meter sets. BSEE 
currently requires multipath ultrasonic meters used for gas royalty or 
allocation measurement to contain at least three independent pairs of 
measuring transducers, and that requirement remains unchanged.
    <bullet> AGA Report No. 10--Speed of Sound in Natural Gas and Other 
Related Hydrocarbon Gases; January 2003:
    This standard contains information for computation of the speed of 
sound in natural gas and other related hydrocarbon gases. Procedures 
are included for computation of several related gas properties, 
including heat capacity, enthalpy, and the critical flow coefficient 
for sonic nozzles.
    <bullet> API MPMS Chapter 4--Manual of Petroleum Measurement 
Standards Chapter 4--Proving Systems, Section 8--Operation of Proving 
Systems; First Edition, November 1995; Reaffirmed March 2007:
    This standard provides information on operating meter provers in 
single-phase liquid hydrocarbons, though much of the information 
provided is applicable to other fluids. It is intended for use as a 
reference manual for operating proving systems.
    <bullet> API MPMS Chapter 5--Manual of Petroleum Measurement 
Standards Chapter 5--Metering, Section 6--Measurement of Liquid 
Hydrocarbons by Coriolis Meters; First Edition, October 2002; 
Reaffirmed March 2008:
    This standard is applicable to custody transfer applications for 
liquid hydrocarbons. Topics covered are:
    [cir] Applicable API standards used in the operation of Coriolis 
meters;
    [cir] Proving and verification using both mass and volume-based 
methods; and
    [cir] Installation, operation, and maintenance.
    The mass and volume-based calculation procedures for proving and

[[Page 18918]]

quantity determination are included in this document. Additionally, the 
Coriolis meter is capable of simultaneously determining density; 
however, this document does not address its use as a stand-alone 
densitometer.
    <bullet> API MPMS Chapter 5--Manual of Petroleum Measurement 
Standards Chapter 5--Metering, Section 8--Measurement of Liquid 
Hydrocarbons by Ultrasonic Flow Meters Using Transit Time Technology; 
First Edition, February 2005:
    This standard defines the application criteria for Ultrasonic Flow 
Meters (UFMs) and addresses the appropriate considerations regarding 
the liquids to be measured. Also, this document addresses the 
installation, operation, and maintenance of UFMs in liquid hydrocarbon 
service. This standard pertains only to spool type, two-or more-path 
ultrasonic flow meters with permanently affixed transducer assemblies. 
While this document was specifically written for custody transfer 
measurement, other acceptable applications may include allocation 
measurement, check meter measurement, and leak detection measurement.
    <bullet> API MPMS Chapter 11--Manual of Petroleum Measurement 
Standards Chapter 11--Physical Properties Data, Section 1--Temperature 
and Pressure Volume Correction Factors for Generalized Crude Oils, 
Refined Products, and Lubricating Oils; May 2004; Addendum 1, September 
2007:
    This standard provides the algorithm and implementation procedure 
for the correction of temperature and pressure effects on density and 
volume of liquid hydrocarbons which fall within the categories of crude 
oil, refined products, or lubricating oils. Natural gas liquids and 
liquid petroleum gases are excluded from this standard. The combination 
of density and volume correction factors for both temperature and 
pressure is collectively referred to in this standard as a Correction 
for Temperature and Pressure of a Liquid. The temperature portion of 
this correction is termed the Correction for the effect of Temperature 
on Liquid, also historically known as Volume Correction Factor. The 
pressure portion is termed the Correction for the effect of Pressure on 
Liquid.
    <bullet> API MPMS Chapter 12--Manual of Petroleum Measurement 
Standards Chapter 12--Calculation of Petroleum Quantities, Section 2--
Calculation of Petroleum Quantities Using Dynamic Measurement Methods 
and Volumetric Correction Factors, Part 3--Proving Reports; First 
Edition, October 1998; Reaffirmed 2009:
    This standard provides standardized calculation methods for the 
determination of meter factors under defined conditions, regardless of 
the point of origin or destination or units of measure required by 
governmental customs or statute. The criteria contained here will allow 
different entities using various computer languages on different 
computer hardware (or by manual calculations) to arrive at identical 
results using the same standardized input data. This document also 
specifies the equations for computing correction factors, including the 
calculation sequence, discrimination levels, and rules for rounding to 
be employed in the calculations. No deviations from these specified 
equations are permitted, since the intent of this document is to 
establish a rigorous standard.
    <bullet> API MPMS Chapter 12--Manual of Petroleum Measurement 
Standards Chapter 12--Calculation of Petroleum Quantities, Section 2--
Calculation of Petroleum Quantities Using Dynamic Measurement Methods 
and Volumetric Correction Factors, Part 4--Calculation of Base Prover 
Volumes by the Waterdraw Method; First Edition, December 1997; 
Reaffirmed 2009:
    This standard provides standardized calculation methods for the 
quantification of liquids and the determination of base prover volumes 
under defined conditions, regardless of the point of origin or 
destination or units of measure required by governmental organizations. 
The criteria contained in this document allow different individuals, 
using various computer languages on different computer hardware (or 
manual calculations), to arrive at identical results using the same 
standardized input data. Part 4 of this standard discusses the 
calculation procedures for the waterdraw calibration method. It is 
important to point out that this publication specifies the equations 
for computing correction factors, rules for rounding, the sequence of 
the calculations, and discrimination levels of all numbers to be used 
in these calculations. No deviations from these specifications are 
permitted since the intent of this document is to serve as a rigorous 
standard.
    <bullet> API MPMS, Chapter 21--Manual of Petroleum Measurement 
Standards Chapter 21--Flow Measurement Using Electronic Metering 
Systems, Section 2--Electronic Liquid Volume Measurement Using Positive 
Displacement and Turbine Meters; First Edition, June 1998:
    This standard provides guidance for effective utilization of 
electronic liquid measurement systems for custody transfer measurement 
of liquid hydrocarbons. The guidance applies to systems using turbine 
or positive displacement meters. The procedures and techniques 
discussed in the document are recommended for use with new measurement 
applications. Liquid measurement using existing equipment and 
techniques not in compliance with this standard may have a higher 
uncertainty than liquid measurement based on the recommendations 
contained in this document.
    <bullet> API MPMS Chapter 21--Manual of Petroleum Measurement 
Standards Chapter 21--Flow Measurement Using Electronic Metering 
Systems, Addendum to Section 2--Flow Measurement Using Electronic 
Metering Systems, Inferred Mass; First Edition, August 2000; Reaffirmed 
February 2006:
    This standard specifically covers inferred mass measurement systems 
utilizing flow computers as the tertiary flow calculation device and 
either turbine or displacement-type meters, working with on-line 
density meters, as the primary measurement devices. The procedures and 
techniques discussed in this document are required for use with new 
measurement applications. Liquid measurement using existing equipment 
and techniques not in compliance with this standard may have a higher 
uncertainty than liquid measurement based on the recommendations 
contained in this document.
    <bullet> API RP 86, API Recommended Practice for Measurement of 
Multiphase Flow; First Edition, September 2005:
    This recommended practice addresses how the user measures 
(multiphase) flow rates of oil, gas, water, and any other fluids that 
are present in the effluent stream. This recommended practice requires 
the definition not only of the methodology that is to be employed, but 
also the provision of evidence that this methodology will produce a 
quality measurement in the intended environment. It is intended that 
this recommended practice be used in conjunction with other similar 
documents to guide the user toward good measurement practice in 
upstream hydrocarbon production applications. The term ``upstream'' 
refers to those measurement points prior to, but not including, the 
custody transfer point.

Comments on the Proposed Rule

    On November 26, 2010, the former Bureau of Ocean Energy Management 
Regulation, and Enforcement (BOEMRE) published a rule proposing to 
incorporate 15 additional production measurement industry standards 
into

[[Page 18919]]

the regulations governing oil, gas, and sulphur operations in the Outer 
Continental Shelf (75 FR 72761). The public comment period ended on 
January 25, 2011. BOEMRE received only two sets of comments on the 
proposed rule; one set from API, the other set was consolidated 
comments from the API, International Association of Drilling 
Contractors, Independent Petroleum Association of America, National 
Ocean Industries Association, Offshore Operators Committee, and US Oil 
and Gas Association. Some of the comments raised issues related to 
another rulemaking; those issues are not included in the discussion of 
comments on this rulemaking. You may view these comments on BSEE's Web 
site at: http://www.BSEE.gov/federalregister/2010.htm.

Discussion of Comments

    Comment: API's standards committees comply with the American 
National Standards Institute (ANSI)-approved procedures for standards 
development which, among other things, require API standards to be 
reviewed every five years. The comment stated that API acknowledges 
that the proposed rule refers to the latest editions of the API 
standards listed in the proposed rule. API further commented, 
``However, we would like to point out that a number of these standards 
are under revision, consistent with API's ANSI-approved procedures for 
standards development. As a result, new or revised editions will likely 
be published before the end of the year for a number of standards cited 
in the proposed rule, including:
    API MPMS Chapter 4.8 Operation of Proving Systems;
    API MPMS Chapter 5.8 Measurement of Liquid Hydrocarbons by 
Ultrasonic Flow Meters Using Transit Time Technology;
    API RP 86 Recommended Practice for Measurement of Multiphase Flow 
(to be replaced by API MPMS Chapter 20.3 Measurement of Multiphase 
Flow).''
    Response: New or revised editions of the standards cited by API may 
be considered for possible incorporation either in whole or in part 
into BSEE's regulations at the appropriate time. Of the documents 
suggested for incorporation, only the new edition of API MPMS Chapter 
5.8 has been published; the other documents are still under 
development. API MPMS Chapter 5.8 was recently released and BSEE is 
reviewing to determine if it wants to incorporate it in the future. 
BSEE will review revised or new standards when they are released and 
will prepare a Notice of Proposed Rulemaking if it decides to 
incorporate any or all of these three new editions. However, BSEE does 
not believe it is in the best interest of either the government or the 
industry to delay this rulemaking to incorporate the one recently 
released new standard or to wait for the publication of the other 
standards. Therefore, BSEE will move forward with the incorporation by 
reference of 12 additional standards in the form that they existed at 
the time BSEE completed its review of the standards for purposes of 
this Final Rule. These standards will result in more accurate and 
efficient measurement of oil and gas production in the OCS.
    Comment: API asked BSEE to clarify the intent of the new 30 CFR 
250.198(a)(3), promulgated as part of an Interim Final Rule, Increased 
Safety Measures for Energy Development on the Outer Continental Shelf, 
published on October 14, 2010 (75 FR 63346) and requested that BSEE 
give additional clarification on what is actually intended by the 
provision presented in that rule at 30 CFR 250.198(a)(3), and what is 
required.
    Response: This comment is beyond the scope of this rulemaking. The 
revised language was published in another proposed rule and BSEE will 
address this comment when that final rule is published.

Availability of Incorporated Documents for Public Viewing

    When a copyrighted technical industry standard is incorporated by 
reference into the agency's regulations, BSEE is obligated to observe 
and protect that copyright. BSEE provides members of the public with 
Web site addresses where these standards may be accessed for viewing--
sometimes for free and sometimes for a fee. The decision to charge a 
fee is made by the standard-developing organization. API provides free 
online public access to 160 key industry standards, including a broad 
range of technical standards. The standards represent almost one-third 
of all API standards and include all that are safety-related or have 
been incorporated into Federal regulations, including the standards in 
this rule, as of the effective date. The newly accessible standards 
will be available for review online, and hardcopies and printable 
versions will continue to be available for purchase. BSEE is 
incorporating both API and AGA standards. The addresses to these Web 
site locations are:
    API Standard/Document Contact IHS at 1-800-854-7179 or 303-397-7956 
Local and International, http://www.global.ihs.com; and AGA Standard/
Document 1-800-699-9277 Toll free in US & Canada http://www.techstreet.com/contact.tmpl. You may view or purchase these API 
documents at: http://www.api.org/.
    For the convenience of the viewing public who may not wish to 
purchase or view these final documents online, they may be inspected at 
the Bureau of Safety and Environmental Enforcement, 381 Elden Street, 
Room 3313, Herndon, Virginia 20170; phone: 703-787-1587; or at the 
National Archives and Records Administration (NARA). For information on 
the availability of this material at NARA, call 202-741-6030, or go to: 
http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.
    These documents, now incorporated in the final rule, will continue 
to be made available to the public for viewing when requested. Specific 
information on where these documents can be inspected or purchased can 
be found at 30 CFR 250.198, Documents Incorporated by Reference.

Procedural Matters

Regulatory Planning and Review (Executive Orders 12866 and 13563)

    This final rule is not a significant rule as determined by the 
Office of Management and Budget (OMB) and is not subject to review 
under E.O. 12866. This final rule:
    (1) Will not have an annual effect of $100 million or more on the 
economy. It will not adversely affect in a material way the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities. The 
primary purpose of this final rule is to add the most current and 
updated measurement standards so that lessees use new measurement 
technology. BSEE believes that these additional standards will not 
result in any significant additional costs. The benefits of the final 
changes in this rule justify the negligible cost incurred by the 
offshore oil and gas industry. The cost to the industry in most cases 
will be minor equipment modification or replacement, some additional 
training and the purchase price of these documents. Compliance with the 
standards in the editions of these documents incorporated by reference 
will assure the use of the best available and most accurate measurement 
technologies for operations on the OCS.
    (2) Will not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency because it does not

[[Page 18920]]

affect the work of other agencies or hinder other agencies from taking 
action.
    (3) Will not materially alter the budgetary effects or 
entitlements, grants, user fees, or loan programs or the rights or 
obligations of their recipients.
    (4) Will not raise novel, legal, or policy issues arising out of 
legal mandates, the President's priorities, or the principles set forth 
in E.O. 12866.
    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. E.O. 13563 emphasizes further 
that regulations must be based on the best available science and that 
the rulemaking process must allow for public participation and an open 
exchange of ideas. This final rule has been developed in a manner 
consistent with these requirements.

Regulatory Flexibility Act

    The Department of the Interior certifies that this final rule will 
not have a significant economic effect on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
    This final rule will affect lessees and operators of oil and gas 
leases in the OCS. This includes approximately 130 active Federal oil 
and gas lessees. Lessees that conduct business under this rule are 
coded under the Small Business Administration's (SBA) North American 
Industry Classification System (NAICS) codes 211111, Crude Petroleum 
and Natural Gas Extraction, and 213111, Drilling Oil and Gas Wells. For 
these NAICS code classifications, a small company is defined as one 
with fewer than 500 employees. BSEE estimates that approximately 70 
percent of the 130 lessees and operators that explore for and produce 
oil and gas on the OCS meet the definition of a small company. This 
rule, which will incorporate 15 additional standards, will not have a 
significant economic effect on a substantial number of small companies 
because the newly incorporated standards will not impose significant 
costs or burdens on any lessees or operators. Therefore, the primary 
economic effect of this rule on small business will be the nominal cost 
associated with the purchase of the standards.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the actions of BSEE, call 1-888-
734-3247. You may comment to the Small Business Administration without 
fear of retaliation. Allegations of discrimination/retaliation filed 
with the Small Business Administration will be investigated for 
appropriate action.

Small Business Regulatory Enforcement Fairness Act

    The final rule is not a major rule under the Small Business 
Regulatory Enforcement Fairness Act (5 U.S.C. 801 et seq.). This final 
rule:
    a. Will not have an annual effect on the economy of $100 million or 
more.
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. The cost to comply with the rule will 
virtually be the same as current requirements.
    c. Will not have a significant adverse effect on competition, 
employment, investment, productivity, innovation, or ability of U.S.-
based enterprises to compete with foreign-based enterprises. The 
requirements will apply to all entities operating on the OCS.

Unfunded Mandates Reform Act of 1995

    This final rule will not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. The final rule will not have a significant or unique 
effect on State, local, or tribal governments or the private sector. A 
statement containing the information required by the Unfunded Mandates 
Reform Act (2 U.S.C. 1501 et seq.) is not required.

Takings Implication Assessment (E.O. 12630)

    Under the criteria in E.O. 12630, this final rule does not have 
significant takings implications. The final rule is not a governmental 
action capable of interference with constitutionally protected property 
rights. A Takings Implication Assessment is not required.

Federalism (E.O. 13132)

    Under the criteria in E.O. 13132, this final rule does not have 
federalism implications. This final rule will not substantially and 
directly affect the relationship between the Federal and State 
governments. To the extent that State and local governments have a role 
in OCS activities, this final rule will not affect that role. A 
Federalism Assessment is not required.

Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

Consultation With Indian Tribes (E.O. 13175)

    Under the criteria in E.O. 13175, we have evaluated this final rule 
and determined that it has no potential effects on federally recognized 
Indian tribes. There are no Indian or tribal lands in the OCS. Nor are 
tribally owned businesses subject to the regulation.

Paperwork Reduction Act

    The final revisions do not contain any information collection 
subject to the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et. seq.); 
therefore, a submission to OMB for review and approval is not required.

National Environmental Policy Act of 1969 (NEPA)

    This final rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. BSEE has 
analyzed this final rule under the criteria of NEPA and 43 CFR part 46. 
This final rule meets the criteria set forth in 43 CFR 46.210(i) for a 
Departmental ``Categorical Exclusion'' in that this final rule is ``* * 
* of an administrative, financial, legal, technical, or procedural 
nature * * *.'' This final rule also meets the criteria set forth in 
516 Departmental Manual 15.4(C)(1) for a BSEE ``Categorical Exclusion'' 
in that its impacts are limited to administrative, economic or 
technological effects. We have also determined that the rule does not 
involve any of the extraordinary circumstances listed in 43 CFR 46.215 
that will require further analysis under NEPA.

[[Page 18921]]

Data Quality Act

    In developing this rule, BSEE did not conduct or use a study, 
experiment, or survey requiring peer review under the Data Quality Act 
(Pub. L. 106-554, app. C Sec.  515, 114 Stat. 2763, 2763A-153-154).

Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O. 13211. A Statement of Energy Effects is not required.

List of Subjects in 30 CFR Part 250

    Continental shelf, Incorporation by reference, Public lands--
mineral resources, Reporting and recordkeeping requirements.

     Dated: March 16, 2012.
Marcilynn A. Burke,
Acting Assistant Secretary--Land and Minerals Management.

    For the reasons stated in the preamble, BSEE proposes to amend 30 
CFR part 250 as follows:

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for part 250 continues to read as follows:

    Authority:  31 U.S.C. 9701, 43 U.S.C. 1334.


0
2. Amend Sec.  250.198 by:
0
a. Removing paragraph (h)(75) and redesignating (h)(76) through (h)(80) 
as (h)(75) through (h)(79); and
0
b. Adding paragraphs (h)(80) through (h)(88) and (l) to read as 
follows:


Sec.  250.198  Documents incorporated by reference.

* * * * *
    (h) * * *
    (80) API Manual of Petroleum Measurement Standards (MPMS) Chapter 
4--Proving Systems, Section 8--Operation of Proving Systems; First 
Edition, reaffirmed March 2007; incorporated by reference at Sec.  
250.1202(a)(2), (a)(3), (f)(1), and (g);
    (81) API Manual of Petroleum Measurement Standards (MPMS) Chapter 
5--Metering, Section 6--Measurement of Liquid Hydrocarbons by Coriolis 
Meters; First Edition, reaffirmed March 2008; incorporated by reference 
at Sec.  250.1202(a)(2) and (3);
    (82) API Manual of Petroleum Measurement Standards (MPMS) Chapter 
5--Metering, Section 8--Measurement of Liquid Hydrocarbons by 
Ultrasonic Flow Meters Using Transit Time Technology; First Edition, 
February 2005; incorporated by reference at Sec.  250.1202(a)(2) and 
(3);
    (83) API Manual of Petroleum Measurement Standards (MPMS) Chapter 
11--Physical Properties Data, Section 1--Temperature and Pressure 
Volume Correction Factors for Generalized Crude Oils, Refined Products, 
and Lubricating Oils; May 2004, (incorporating Addendum 1, September 
2007); incorporated by reference at Sec.  250.1202(a)(2), (a)(3), (g), 
and (l)(4);
    (84) API Manual of Petroleum Measurement Standards (MPMS) Chapter 
12--Calculation of Petroleum Quantities, Section 2--Calculation of 
Petroleum Quantities Using Dynamic Measurement Methods and Volumetric 
Correction Factors, Part 3--Proving Reports; First Edition, reaffirmed 
2009; incorporated by reference at Sec.  250.1202(a)(2), (a)(3), and 
(g);
    (85) API Manual of Petroleum Measurement Standards (MPMS) Chapter 
12--Calculation of Petroleum Quantities, Section 2--Calculation of 
Petroleum Quantities Using Dynamic Measurement Methods and Volumetric 
Correction Factors, Part 4--Calculation of Base Prover Volumes by the 
Waterdraw Method, First Edition, reaffirmed 2009; incorporated by 
reference at Sec.  250.1202(a)(2), (a)(3), (f)(1), and (g);
    (86) API Manual of Petroleum Measurement Standards (MPMS) Chapter 
21--Flow Measurement Using Electronic Metering Systems, Section 2--
Electronic Liquid Volume Measurement Using Positive Displacement and 
Turbine Meters; First Edition, June 1998; incorporated by reference at 
Sec.  250.1202(a)(2);
    (87) API Manual of Petroleum Measurement Standards Chapter 21--Flow 
Measurement Using Electronic Metering Systems, Addendum to Section 2--
Flow Measurement Using Electronic Metering Systems, Inferred Mass; 
First Edition, reaffirmed February 2006; incorporated by reference at 
Sec.  250.1202(a)(2);
    (88) API RP 86, API Recommended Practice for Measurement of 
Multiphase Flow; First Edition, September 2005; incorporated by 
reference at Sec.  250.1202(a)(2), (a)(3), and Sec.  250.1203(b)(2).
* * * * *
    (l) American Gas Association (AGA Reports), 400 North Capitol 
Street, NW., Suite 450, Washington, DC 20001, http://www.aga.org; 
phone: 202-824-7000;
    (1) AGA Report No. 7--Measurement of Natural Gas by Turbine Meters; 
Revised February 2006; incorporated by reference at Sec.  
250.1203(b)(2);
    (2) AGA Report No. 9--Measurement of Gas by Multipath Ultrasonic 
Meters; Second Edition, April 2007; incorporated by reference at Sec.  
250.1203(b)(2);
    (3) AGA Report No. 10--Speed of Sound in Natural Gas and Other 
Related Hydrocarbon Gases; Copyright 2003; incorporated by reference at 
Sec.  250.1203(b)(2).

0
3. In Sec.  250.1202, revise paragraphs (a)(2) and (3), (f)(1), (g) 
introductory text and (g)(1) through (4), and (l)(4) to read as 
follows:


Sec.  250.1202  Liquid hydrocarbon measurement.

* * * * *
    (a) * * *
    (2) Use measurement equipment and procedures that will accurately 
measure the liquid hydrocarbons produced from a lease or unit to comply 
with the following additional API MPMS industry standards or API RP:
    (i) API MPMS, Chapter 4, Section 8 (incorporated by reference as 
specified in Sec.  250.198);
    (ii) API MPMS, Chapter 5, Section 6 (incorporated by reference as 
specified in Sec.  250.198);
    (iii) API MPMS, Chapter 5, Section 8 (incorporated by reference as 
specified in Sec.  250.198);
    (iv) API MPMS, Chapter 11, Section 1 (incorporated by reference as 
specified in Sec.  250.198);
    (v) API MPMS Chapter 12, Section 2, Part 3 (incorporated by 
reference as specified in Sec.  250.198);
    (vi) API MPMS Chapter 12, Section 2, Part 4 (incorporated by 
reference as specified in Sec.  250.198);
    (vii) API MPMS, Chapter 21, Section 2 (incorporated by reference as 
specified in Sec.  250.198);
    (viii) API MPMS, Chapter 21, Addendum to Section 2 (incorporated by 
reference as specified in Sec.  250.198);
    (ix) API RP 86 (incorporated by reference as specified in Sec.  
250.198);
    (3) Use procedures and correction factors according to the 
applicable chapters of the API MPMS or RP as incorporated by reference 
in 30 CFR 250.198, including the following additional editions:
    (i) API MPMS, Chapter 4, Section 8 (incorporated by reference as 
specified in Sec.  250.198);
    (ii) API MPMS, Chapter 5, Section 6 (incorporated by reference as 
specified in Sec.  250.198);
    (iii) API MPMS, Chapter 5, Section 8 (incorporated by reference as 
specified in Sec.  250.198);
    (iv) API MPMS Chapter 11, Section 1 (incorporated by reference as 
specified in Sec.  250.198);
    (v) API MPMS Chapter 12, Section 2, Part 3 (incorporated by 
reference as specified in Sec.  250.198);

[[Page 18922]]

    (vi) API MPMS Chapter 12, Section 2, Part 4 (incorporated by 
reference as specified in Sec.  250.198);
    (vii) API RP 86 (incorporated by reference as specified in Sec.  
250.198); when obtaining net standard volume and associated measurement 
parameters; and
* * * * *
    (f) * * *
    (1) Calibrate mechanical-displacement provers and tank provers at 
least once every 5 years according to the API MPMS as incorporated by 
reference in 30 CFR 250.198, including the following additional 
editions:
    (i) API MPMS, Chapter 4, Section 8 (incorporated by reference as 
specified in Sec.  250.198);
    (ii) API MPMS Chapter 12, Section 2, Part 4 (incorporated by 
reference as specified in Sec.  250.198);
* * * * *
    (g) * * * Calculate the following correction factors using the API 
MPMS as referenced in 30 CFR 250.198, including the following 
additional editions:
    (1) API MPMS, Chapter 4, Section 8 (incorporated by reference as 
specified in Sec.  250.198);
    (2) API MPMS Chapter 11, Section 1 (incorporated by reference as 
specified in Sec.  250.198);
    (3) API MPMS Chapter 12, Section 2, Part 3 (incorporated by 
reference as specified in Sec.  250.198);
    (4) API MPMS Chapter 12, Section 2, Part 4 (incorporated by 
reference as specified in Sec.  250.198);
* * * * *
    (l) * * *
    (4) Obtain the volume and other measurement parameters by using 
corrections factors and procedures in the API MPMS as incorporated by 
reference in 30 CFR 250.198, including: API MPMS Chapter 11, Section 1 
(incorporated by reference as specified in Sec.  250.198).

0
4. Revise Sec.  250.1203(b)(2) to read as follows:


Sec.  250.1203  Gas measurement.

* * * * *
    (b) * * *
    (2) Design, install, use, maintain, and test measurement equipment 
and procedures to ensure accurate and verifiable measurement. You must 
follow the recommendations in API MPMS or RP and AGA as incorporated by 
reference in 30 CFR 250.198, including the following additional 
editions:
    (i) API RP 86 (incorporated by reference as specified in Sec.  
250.198);
    (ii) AGA Report No. 7 (incorporated by reference as specified in 
Sec.  250.198);
    (iii) AGA Report No. 9 (incorporated by reference as specified in 
Sec.  250.198);
    (iv) AGA Report No. 10 (incorporated by reference as specified in 
Sec.  250.198);
* * * * *

[FR Doc. 2012-7324 Filed 3-28-12; 8:45 am]
BILLING CODE 4310-VH-P


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