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[Federal Register Volume 76, Number 178 (Wednesday, September 14, 2011)]
[Proposed Rules]
[Pages 56683-56694]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23537]

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management, Regulation and Enforcement

30 CFR Part 250

[Docket ID BOEM-2011-0003]
RIN 1010-AD73

Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Revisions to Safety and Environmental Management Systems

AGENCY: Bureau of Ocean Energy Management, Regulation and Enforcement 
(BOEMRE), Interior.

ACTION: Proposed rule.

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SUMMARY: This rulemaking proposes to amend BOEMRE regulations to 
require operators to develop and implement additional provisions in 
their Safety and Environmental Management Systems (SEMS) programs for 
oil, gas, and sulphur operations in the Outer Continental Shelf (OCS). 
These revisions pertain to developing and implementing stop work 
authority and ultimate work authority, requiring employee participation 
in the development and implementation of SEMS programs, and 
establishing requirements for reporting unsafe working conditions. In 
addition, this proposed rule requires independent third parties to 
conduct audits of operators' SEMS programs and establishes further 
requirements relating to conducting job safety analysis (JSA) for 
activities identified in an operator's SEMS program. We believe that 
these new requirements will further reduce the likelihood of accidents, 
injuries, and spills in connection with OCS activities that are 
regulated under BOEMRE jurisdiction, by requiring OCS operators to 
specifically address issues associated with human behavior as it 
applies to their SEMS program.

DATES: Submit comments by November 14, 2011. BOEMRE may not fully 
consider comments received after this date. Submit comments to the 
Office of Management and Budget on the information collection burden in 
this

[[Page 56684]]

proposed rule by October 14, 2011. This does not affect the deadline 
for the public to comment to BOEMRE on the proposed regulations.

ADDRESSES: You may submit comments on the rulemaking by any of the 
following methods. Please use the Regulation Identifier Number (RIN) 
1010-AD73 as an identifier in your message. See also Public 
Availability of Comments under Procedural Matters.
     Federal eRulemaking Portal: http://www.regulations.gov. In 
the entry titled ``Enter Keyword or ID,'' enter BOEM-2011-0003 then 
click search. Follow the instructions to submit public comments and 
view supporting and related materials available for this rulemaking. 
BOEMRE will post all comments.
     Mail or hand-carry comments to the Department of the 
Interior; Bureau of Ocean Energy Management, Regulation and 
Enforcement; Attention: Regulations and Standards Branch (RSB); 381 
Elden Street, MS-4024, Herndon, Virginia 20170-4817. Please reference 
``Revisions to Safety and Environmental Management Systems (SEMS), 
1010-AD73'' in your comments and include your name and return address.
     Send comments on the information collection in this rule 
to: Interior Desk Officer 1010-AD73, Office of Management and Budget; 
202-395-5806 (fax); e-mail: oira_docket@omb.eop.gov. Please also send 
a copy to BOEMRE.

FOR FURTHER INFORMATION CONTACT: David Nedorostek, Safety and 
Enforcement Branch, BOEMRE, (703) 787-1029.

SUPPLEMENTARY INFORMATION: On October 15, 2010, BOEMRE published a 
final rule that established a new subpart S in part 250, containing 
SEMS requirements for all OCS operators (75 FR 63610). This proposed 
rule would add to and amend those requirements. This proposed rule 
would apply to all OCS oil and gas and sulphur operations and 
facilities under BOEMRE jurisdiction including drilling, production, 
construction, well workover, well completion, well servicing, and 
Department of the Interior (DOI) pipeline activities. Nothing in this 
proposed rule would affect the Coast Guard's authority with respect to 
safety regulations and authorities, and jurisdiction over vessels and 
offshore facilities. Thus, because several other agencies have 
jurisdiction over certain aspects of OCS activities and some of these 
agencies require the use of safety management systems, the requirements 
related to SEMS programs under this subpart do not affect operators' 
obligations to comply with other regulatory requirements outside of 
BOEMRE's jurisdiction. For example, if the operator's activities fall 
within the regulatory purview of another agency (including, e.g., 
United States Coast Guard, Department of Homeland Security), the 
operator is also required to follow that agency's regulations. 
Operations and activities that are regulated under BOEMREs jurisdiction 
and that should be identified/discussed in an operators SEMS plan cover 
industrial activities. These cover such activities as, mineral 
exploration, development, pipeline transportation, storage, production, 
drilling, completion and workover. A system/sub-system breakdown of 
what is regulated under BOEMREs jurisdiction can be found in Annex 1 of 
MMS/USCG MOA: OCS-01 and in the MMS/USCG MOA: OCS-04 (these documents 
have been placed in the public docket). Operators should refer to these 
documents when developing, implementing and auditing their SEMS plan.
    The importance of this proposed rule is highlighted by the 
Deepwater Horizon event on April 20, 2010. The blowout of the BP 
Macondo well, and the resulting explosion on the Deepwater Horizon 
drilling rig, resulted in the deaths of 11 workers, the loss of the 
Deepwater Horizon, and an oil spill of national significance. Although 
the causes of the event continue to be under investigation, the event 
further illustrates the importance of ensuring safe operations on the 
OCS. BOEMRE therefore intends to continue to evaluate findings from 
ongoing investigations and reviews into the Deepwater Horizon event, as 
well as other issues related to managing human factors to promote 
safety and environmental protection for offshore oil, gas, and sulphur 
development.
    This proposed rule will further enhancements to operators' SEMS 
programs. SEMS programs, properly implemented by the operator, are 
designed to improve the safety performance of offshore operations. 
Because SEMS programs focus on the overall safety performance of 
offshore operations activities that are regulated under BOEMRE 
jurisdiction, as opposed to compliance with specific prescriptive 
requirements governing those operations, the success of a SEMS program 
ultimately depends on how effectively the operator engrains the 
principles underlying SEMS into the safety culture of their operations. 
BOEMRE remains actively engaged with industry regarding the substance 
and implementation of SEMS programs.
    BOEMRE will continue to analyze information that becomes available, 
and to implement standards necessary to make offshore oil and gas 
activity safer and with appropriate protections for workers and the 
environment. BOEMRE may consider further safety and environmental 
protection requirements as well as other measures in future 
rulemakings. This may include consideration of further interagency 
coordination, further analysis of performance-based and prescriptive 
requirements, and maintaining a flexible approach to adopting 
requirements that can keep up with evolving technologies so as to 
promote systematic safety and other relevant matters. BOEMRE 
anticipates, in the near future, issuing an advanced notice of proposed 
rulemaking (ANPRM) that will solicit public comment regarding potential 
new safety measures for offshore operations. The ANPRM will include 
discussion of a range of new measures that are intended to encourage 
public comment on potential new prescriptive requirements, as well as 
performance-based standards, designed to further enhance the safety of 
offshore energy operations and promote appropriate safety culture in 
those operations.
    It is the intention of BOEMRE to share information with the public 
on aggregated results from SEMS audits. BOEMRE will develop metrics 
that demonstrate industry's degree of compliance with this new 
regulatory requirement.

Summary of the Proposed Rule

    BOEMRE proposes to expand, revise, and add several new requirements 
necessary for more thorough SEMS programs, and to facilitate BOEMRE 
oversight. BOEMRE believes the following requirements are necessary 
provisions to ensure a complete safety management program on OCS 
facilities that are regulated under BOEMRE jurisdiction. These six 
additional requirements provide several key ways for offshore employees 
to help ensure safe operation of activities that are regulated under 
BOEMRE jurisdiction on the OCS. The addition of a mandatory independent 
third party auditor brings necessary objectivity to identifying good 
practices and any deficiencies that may exist in an operator's SEMS 
program.
    (1) Procedures to authorize any and all employees on the facility 
to implement a Stop Work Authority (SWA) program when witnessing an 
activity that is regulated under BOEMRE jurisdiction that creates a 
threat of danger to an individual, property, and/or the environment;
    (2) Clearly defined requirements establishing who has the ultimate 
authority on the facility for operational

[[Page 56685]]

safety and decision making at any given time;
    (3) A plan of action that shows how operator employees are involved 
in the implementation of the American Petroleum Institute's Recommended 
Practice for Development of a Safety Environmental Management Program 
for Offshore Operations and Facilities (API RP 75), as incorporated by 
reference in the subpart S regulatory requirements in the October 15, 
2010, final rule;
    (4) Guidelines for reporting unsafe work conditions related to an 
operators SEMS program, that provide all employees the right to report 
a possible safety or environmental violation(s) and to request a BOEMRE 
inspection of the facility if they believe there is a serious threat of 
danger or their employer is not following BOEMRE regulations;
    (5) Revisions that require operators with SEMS programs to engage 
independent third party auditors to conduct all audits of operators' 
SEMS programs and that the independent third party auditors must meet 
the criteria listed in Section 250.1926 of this proposed rule;
    (6) Additional requirements for conducting a JSA.

Section-by-Section Discussion of the Proposed Requirements

What must I include in my SEMS program? (Sec.  250.1902)

    BOEMRE proposes additional requirements to subpart S in this 
rulemaking. The proposed rule would revise this section to include 
references to the following proposed new sections and requirements: 
stop work authority (Sec.  250.1930), ultimate work authority (Sec.  
250.1931), employee participation (Sec.  250.1932), and guidelines for 
reporting unsafe work conditions (Sec.  250.1933). These new 
requirements would need to be included in the operator's SEMS program.

Definitions (Sec.  250.1903)

    BOEMRE proposes to add definitions for management and mobile 
offshore drilling unit (MODU) in subpart S. Management would mean a 
team of individuals who have the day-to-day responsibilities for 
overseeing operations conducted on a facility or providing instruction 
to operational personnel, including but not limited to employees and 
contractors working on a facility or in the company's onshore offices; 
Mobile offshore drilling unit or MODU would mean a vessel capable of 
engaging in drilling, well workover, well completion or well servicing 
operations for exploring or exploiting subsea oil, gas or other mineral 
resources.

What criteria for hazards analyses must my SEMS program meet? (Sec.  
250.1911)

    BOEMRE proposes additional requirements for conducting a JSA. The 
proposed requirements would improve the effectiveness of the JSA 
through better identification of risks and hazards. The operator would 
be required to ensure a JSA is prepared, conducted, and approved for 
OCS activities that are regulated under BOEMRE jurisdiction and 
identified or discussed in the SEMS program. A JSA is a technique used 
to identify risks to personnel associated with the activity and the 
appropriate mitigation to reduce these risks. The analysis must include 
all personnel involved with or affected by the activity being 
conducted. The JSA must identify, analyze, and record: the steps 
involved in performing a specific job; the existing or potential safety 
and health hazards associated with each step; and the recommended 
action(s) or procedure(s) that will eliminate or reduce these hazards 
and the risk of a workplace injury or illness. If a particular activity 
is conducted on a recurring basis, and if the parameters of these 
recurring activities do not change, then the person in charge of the 
activity could decide that a JSA for each employee engaged in that 
activity is not required. The parameters the person in charge would be 
required to consider in making this determination include, but are not 
limited to, changes in personnel, procedures, equipment, and/or 
environmental conditions associated with the activity.
    The immediate supervisor of the personnel conducting the work would 
be required to prepare the JSA, sign the JSA, and ensure that all 
personnel participating in the job sign the JSA as well. The person 
onsite designated by the operator as the person in charge of the 
facility would have to approve and sign the JSA and document the 
results of the JSA in writing.
    The operator must conduct training for all personnel on how to 
recognize and identify hazards as part of the SEMS program. The 
operator must provide the training required under this rule to 
employees within 30 days of employment, and not less than once every 12 
months thereafter.

What criteria for training must be in my SEMS program? (Sec.  250.1915)

    BOEMRE proposes additional requirements for training so that all 
personnel performing activities on the OCS that are regulated under 
BOEMRE jurisdiction are trained to work safely and are aware of 
potential environmental considerations offshore, in accordance with 
their duties and responsibilities. Training would have to address the 
methods of recognizing and identifying hazards and how to develop and 
implement JSAs (Sec.  250.1911), operating procedures (Sec.  250.1913), 
safe work practices (Sec.  250.1914), emergency response and control 
measures (Sec.  250.1918), stop work authority (Sec.  250.1930), 
ultimate work authority (Sec.  250.1931), employee participation 
program (Sec.  250.1932), and the reporting of unsafe work conditions 
(Sec.  250.1933). Proposed Sec.  250.1915 (c) and (d) would ensure that 
changes in standards would be communicated to operator personnel and 
that training for contractor personnel would be verified.

What are the auditing requirements for my SEMS program? (Sec.  
250.1920)

    BOEMRE proposes to revise this section by removing the option for 
the operator to use designated and qualified operator personnel to 
perform an audit of the SEMS program. Use of an independent third party 
will provide for increased objectivity in regards to improving 
personnel safety and achieving environmental protection as compared to 
utilizing a designated and qualified person of the operator. Therefore, 
BOEMRE would require that audits of operators SEMS programs be 
conducted by independent third parties. Independent third parties would 
be required to meet the qualifications under Sec.  250.1926.

How will BOEMRE determine if my SEMS program is effective? (Sec.  
250.1924)

    BOEMRE proposes to require the operator to conduct audits using 
only an independent third party. The proposed rule would revise this 
section to be consistent with that requirement by removing the option 
to allow the operator to use designated and qualified operator 
personnel to perform an audit of the SEMS program. The audit is the 
initial step to determine if an operator's SEMS program is effective. 
It will take time to ascertain the ultimate effectiveness of this 
regulatory requirement. Provisions for submittal of accident and 
incident information in the initial SEMS rule published in October 
2010, will provide metrics that will help demonstrate the effectiveness 
of this requirement. BOEMRE is also researching additional ways to 
determine the effectiveness of an operator's SEMS program on an 
individual company basis.

[[Page 56686]]

What qualifications must an independent third party auditor meet? 
(Sec.  250.1926)

    BOEMRE proposes to revise this section by removing the option for 
the operator to use designated and qualified operator personnel to 
perform an audit of the SEMS program. This section also would include 
new qualifications that the independent third party auditor must meet.
    The operator would be required to nominate an independent third 
party to audit its SEMS program. The independent third party must be 
capable of performing all tasks associated with an audit. The operator 
would be required to notify BOEMRE in writing of its nomination and to 
submit a request to BOEMRE for approval of the proposed third party 
auditor at least 30 days prior to the next audit. The request must 
state the name and address of the nominated individual or organization. 
The request would have to include the following items: Qualifications 
of the nominated individual or organization relating to education and 
previous experience with SEMS, or similar management related programs; 
previous experience with BOEMRE regulatory requirements and procedures; 
and the educational background and previous experience that qualifies 
the proposed auditor to understand and evaluate how the operator's 
offshore activities, raw materials, production methods and equipment, 
products, byproducts, and business management systems may impact health 
and safety performance in the workplace. A request would also have to 
include a signed statement that the independent third party is not 
owned or controlled by, or otherwise affiliated with, the operator. An 
operator would also need to have procedures to avoid conflicts of 
interest related to the development of the operator's SEMS program and 
the independent third party auditor. The proposed rule would provide 
that if a third party auditor was involved in developing and/or 
maintaining the SEMS program, then that person, organization, and/or 
its subsidiaries could not audit the SEMS program.
    Under the proposed rule, after evaluating the third party's 
qualifications, BOEMRE could accept or not accept the operator's 
independent third party nomination. If BOEMRE does not accept the 
nomination of an independent third party, then the operator must submit 
a new nomination before the audit may go forward.
    The audit report, once completed, must be submitted to BOEMRE and 
the operator. BOEMRE will notify the operator of whether or not the 
audit report is sufficient and acceptable. Under the proposal, the 
operator would be responsible for the costs of the audit.

What are my recordkeeping and documentation requirements? (Sec.  
250.1928)

    BOEMRE proposes adding additional requirements to subpart S in this 
rulemaking. In the proposed rule, this section would be revised to 
include new recordkeeping and documentation requirements. For stop work 
authority, training and review records would have to be kept at the 
facility for 30 days, retained for two years, and made available to 
BOEMRE upon request. The operator would also have to document that all 
personnel participated in the development and implementation of the 
SEMS program. Such records would have to be retained for two years and 
made available to BOEMRE upon request.

What must be included in my SEMS program for ``Stop Work Authority'' 
(SWA)? (Sec.  250.1930)

    BOEMRE proposes to add a new section requiring operators to create 
and implement an SWA program. This program would ensure that all 
employees and personnel, including contractors performing activities on 
the OCS that are regulated under BOEMRE jurisdiction, are given the 
responsibility and authority to stop work at the facility when such 
employees or personnel witness an activity that is regulated under 
BOEMRE jurisdiction that creates an imminent risk or danger to the 
health or safety of an individual or of the public or to the 
environment. The SWA would include authority to stop the specific 
task(s) or activity that poses an imminent risk or danger. Imminent 
risk or danger would mean any condition, activity, or practice in the 
workplace that could reasonably be expected to cause: (1) Death or 
serious physical harm immediately or before the risk or danger can be 
eliminated through enforcement procedures; or (2) significant, imminent 
environmental harm to land, air, aquatic, marine or subsea environments 
or resources. The rule would provide further that individuals who 
receive notification to stop work must comply with the direction 
immediately. In supporting the safe execution of work and to promote a 
culture of safety at work, all personnel should have the responsibility 
and authority to stop work or decline to perform an assigned task when 
an immediate risk or danger exists, without fear of reprisal. Persons 
exercising the SWA should have discussions with co-workers, 
supervisors, and/or safety representatives to attempt to resolve any 
safety issues that may be causing the imminent danger or risk. The 
proposed rule would provide that when a stop work order under an SWA 
program use is issued, the person in charge of the activity that is 
subject to the order is responsible for ensuring the work is stopped in 
an orderly and safe manner. The rule would provide further that work 
may be resumed upon a determination by the person on the facility with 
ultimate work authority that the imminent danger or risk does not exist 
or no longer exists. The decision to resume activities would have to be 
documented as soon as practicable.

What must be included in my SEMS program for ``Ultimate Work 
Authority'' (UWA)? (Sec.  250.1931)

    BOEMRE is also proposing a requirement for operators to specify who 
has the Ultimate Work Authority (UWA) on fixed or floating facilities 
(i.e., floating production systems; floating production, storage and 
offloading facilities; tension-leg platforms; and spars) and on MODUs 
performing activities under BOEMRE's jurisdiction. The person with the 
UWA would be the person on the fixed or floating facilities or MODU 
with the final responsibility for making decisions. Under the proposed 
rule, the operator's SEMS program must identify all persons that could 
have UWA and those persons must be designated as such by the operator. 
Only a single person would have UWA at any given time, so operators 
must take into consideration all applicable Coast Guard regulations 
that deal with designating a ``person in charge'' (in accordance with 
USCG regulations) of a MODU or OCS floating facility.
    The SEMS program would have to define clearly who is in charge at 
all times, and would ensure that all personnel clearly know who is in 
charge, including when that responsibility shifts to a different 
person. The person with UWA must be known by name and be readily 
identifiable, and accessible by every person on the MODU or fixed and 
floating facility. This could be done, for instance, by posting a 
notice including contact information in a public and easily accessible 
location.
    Proposed Sec.  250.1931(c) would make it clear that the operator 
has the responsibility for ensuring its SEMS program is implemented on 
fixed and floating facilities, and on MODUs conducting activities under 
BOEMRE's

[[Page 56687]]

jurisdiction. The person with the UWA has a key role in assuring that 
the operator's SEMS program is implemented in a manner that addresses 
personnel safety and protection of the environment.
    Proposed Sec.  250.1931(d) would require the SEMS program to 
provide that if an emergency occurs that creates an imminent risk or 
danger to the health or safety of an individual or the public or to the 
environment (as specified in proposed Sec.  250.1930(a)), the person 
with the UWA is authorized to pursue any action necessary in that 
person's judgment to mitigate and abate the conditions, activities or 
practices causing the emergency. This grant of authority is needed to 
ensure that necessary actions will be taken to deal with a serious 
emergency.

What are my employee participation program requirements? (Sec.  
250.1932)

    BOEMRE proposes to add a new section to the rule that details 
operators' requirements relating to an employee participation program. 
Under the proposed rule, an operator's management would be required to 
consult with its employees that perform activities on the OCS that are 
regulated under BOEMRE jurisdiction on the development and 
implementation of the SEMS program. Management would also have to 
develop a written plan of action regarding how appropriate employees, 
in both the operator's offices and working on offshore facilities, will 
participate in the SEMS program development and implementation. The 
operator would have to provide each employee and contractor employee 
access to the SEMS program and to all other information required by API 
RP 75, as incorporated, and the employee participation program. 
Management must provide BOEMRE a copy of the employee participation 
program upon request and make it available during an audit.

What criteria must be included for reporting unsafe work conditions? 
(Sec.  250.1933)

    BOEMRE is proposing guidelines for the reporting of unsafe work 
conditions, which would permit operator personnel and contractors on 
any facility engaged in OCS activities under BOEMRE jurisdiction to 
report to BOEMRE violations of any BOEMRE order or regulation or any 
other provision of Federal law relating to offshore safety or other 
hazardous or unsafe working conditions. These procedures must also 
include the existing Coast Guard unsafe working conditions reporting 
requirements found in 33 CFR 142.7 and 46 CFR 109.419. The proposed 
rule would specify that a report should contain sufficient credible 
information to establish a reasonable basis for BOEMRE to determine 
whether a violation or other hazardous or unsafe working condition 
exists. Under the proposed rule, an employee or contractor would not be 
required to know whether a specific BOEMRE order or regulation has been 
violated in order to report potentially unsafe conditions. The proposal 
would provide that the identity of any person making a report under 
paragraph (c) of this section will not be made available by BOEMRE, 
without the permission of the reporting person, to anyone other than 
the employees of BOEMRE who have a need for the record in the 
performance of their official duties. Under the proposal, after 
reviewing the report and conducting any necessary investigation, BOEMRE 
would notify the operator of any deficiency or hazard and initiate 
enforcement measures as the circumstances warrant.
    The report could either be made in writing to the address provided 
in the regulation or verbally by calling the BOEMRE hotline (1-877-440-
0173).
    As relates to the reporting of unsafe work conditions, the operator 
would be responsible for:
    (1) Posting a notice explaining personnel rights and remedies in a 
visible location at the place of employment where employees frequent;
    (2) Providing training to personnel about their rights and 
responsibilities within 30 days of employment, and at least once every 
12 months thereafter; and
    (3) Providing personnel with a card containing a toll-free 
telephone number to contact BOEMRE or file a complaint.

Procedural Matters

Regulatory Planning and Review (Executive Order (E.O.) 12866)

    This proposed rule is a significant rule as determined by the 
Office of Management and Budget (OMB) and is subject to review under 
E.O. 12866.
    (1) This proposed rule would not have an annual effect of $100 
million or more on the economy. It would 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.
    (2) This proposed rule would not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency.
    (3) This proposed rule would not alter the budgetary effects of 
entitlements, grants, user fees, or loan programs or the rights or 
obligations of their recipients.
    (4) This proposed rule might raise novel legal or policy issues 
arising out of legal mandates, the President's priorities, or the 
principles set forth in E.O. 12866.
    BOEMRE has prepared a Regulatory Impact Analysis (RIA) for this 
rulemaking. The full analysis can be found on Federal eRulemaking 
Portal: http://www.regulations.gov. In the entry titled ``Enter Keyword 
or ID,'' enter BOEM-2011-0003 then click search. Follow the 
instructions to view the RIA and submit public comments for this 
rulemaking.
    BOEMRE estimates the average annual cost of complying with this 
rulemaking is $26.9 million, spread across all OCS oil and gas 
operators with active operations. The benefits of the proposed SEMS 
provisions in this rulemaking would come from enhanced safety for 
offshore workers and greater protection of the marine environment. 
These benefits would be realized through additional employee 
participation in safety procedures, training programs, notification 
obligations, as well as strengthened safety and SEMS auditing 
procedures.
    We estimated the costs of this proposed regulation by totaling the 
costs from both the Paperwork Reduction Act (PRA) burden estimates and 
the estimated required training costs added through this rulemaking. 
BOEMRE estimates that the compliance costs for this regulation are 
$15.2 million for recordkeeping, administration, and related costs and 
$11.7 million for training costs. This yields a total estimated annual 
compliance cost for this proposed rule of $26.9 million.
    Because OCS operators have until November 15, 2011 to implement to 
all thirteen elements of the SEMS program per 30 CFR 250.1900(a), the 
compliance cost estimate for this regulation also considers burden 
hours for legacy implementation costs covered by the PRA. These legacy 
PRA costs are estimated to be $40.0 million. If these legacy costs are 
included the total estimated compliance cost for this proposed rule is 
$66.9 million ($15.2 + $11.7 + $40.0 = $66.9 million).
    The protection of human life and the environment are the top 
priorities and objectives of this rule. While it is difficult to 
quantify the benefits of the lives saved and risks avoided due to this 
proposed regulation, implementation of a comprehensive SEMS program 
with these newly proposed requirements is intended to further the goal 
of avoiding accidents that may result in injuries,

[[Page 56688]]

fatalities, and serious environmental damage.
    The compliance cost for managing a comprehensive SEMS program is 
very minor compared to the costs associated with major accidents. For 
example, in 1987, prior to industry's development of a safety 
management template for offshore operations, the Mississippi Canyon 
311, A (Bourbon), platform in the Gulf of Mexico was tilted to one side 
by an extensive underground blowout. The cost associated with this 
incident alone was $274,000,000. In 1989, a fire associated with a 
pipeline repair killed 7 people and destroyed a major production 
facility. The 2010 Macondo blowout event killed 11 people, destroyed 
the drilling rig and caused billions of dollars in damage. A SEMS 
program is not a guarantee of avoiding or preventing all accidents, but 
BOEMRE's intent in requiring a comprehensive SEMS program, which 
includes all 13 elements in API RP75 and these newly proposed 
provisions in this rulemaking, is to reduce the likelihood of these 
types of accidents and incidents and raise the safety awareness of all 
personnel.

Regulatory Flexibility Act

    An Initial Regulatory Flexibility Analysis (IRFA) has been prepared 
for this rulemaking and is available as part of the RIA. The IRFA can 
be found on Federal eRulemaking Portal: http://www.regulations.gov. In 
the entry titled ``Enter Keyword or ID,'' enter BOEM-2011-0003, then 
click search. Follow the instructions to view the RIA and IRFA and 
submit public comments for this rulemaking.
    The changes proposed in the rule would affect lessees and operators 
of leases and pipeline right-of-way holders in the OCS. This group 
could include about 130 active Federal oil and gas lessees. Small 
lessees that operate under this rule fall under the Small Business 
Administration's 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 one with fewer than 500 employees. Based on these 
criteria, an estimated 65 percent of the affected companies are 
considered small. This proposed rule, therefore, would affect a 
substantial number of small entities.
    Small entities are represented in all activity levels of OCS 
operations (high, moderate, and low based on the number of offshore 
complexes the entity operates). Small companies would bear 
approximately 40 percent of the costs of this proposed rulemaking. This 
is approximately $10.7 million of the $26.9 million estimated 
compliance cost for this proposed rule. If the legacy PRA burden 
implementation costs are added to the new costs in this proposed 
rulemaking, small companies' burden is about $27.5 million of the 
estimated $66.9 million.
    While 40 percent is greater than small companies' share of OCS 
leases, small companies hold 45 percent of leases in the shallow water 
depths where most production facilities are located (98 percent of 
active platforms are in shallow water).
    The operating risk for small companies to incur safety or 
environmental accidents is not necessarily lower than it is for larger-
sized companies. Offshore operations are highly technical and can be 
hazardous. Adverse consequences in the event of incidents, are the same 
regardless of the operator's size. We have evaluated a number of 
alternatives to accommodate small entities and facilitate compliance 
with the intent of this rulemaking, but were unable to identify 
provisions that would achieve the same safety objectives.
    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 BOEMRE, 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 proposed rule is not a major rule under the Small Business 
Regulatory Enforcement Fairness Act (5 U.S.C. 801 et seq.). This 
proposed rule:
    a. Would not have an annual effect on the economy of $100 million 
or more.
    b. Would not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    c. Would not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises. The 
requirements would apply to all entities operating on the OCS.

Unfunded Mandates Reform Act of 1995

    This proposed rule would not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. This proposed rule would 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 proposed rule does not have 
significant takings implications. The proposed 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 proposed rule does not have 
federalism implications. This proposed rule would 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 proposed rule would 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 proposed 
rule and determined that it has no substantial effects on federally 
recognized Indian tribes.

Paperwork Reduction Act (PRA) of 1995

    This rulemaking proposes to add new requirements to current 
regulations under 30 CFR 250, Subpart S, Safety and Environmental 
Management Systems for Outer Continental Shelf Oil and Gas Operations. 
Therefore, an information collection request is being submitted to OMB 
for review and approval under 44 U.S.C. 3501 et seq. The information 
collection for the current regulations is approved under

[[Page 56689]]

OMB Control Number 1010-0186 (expiration date 10/31/2013, 465,099 
burden hours, $12,933,000 non-hour cost burdens).
    As part of our continuing effort to reduce paperwork and respondent 
burdens, BOEMRE invites the public and other Federal agencies to 
comment on any aspect of the reporting and recordkeeping burden. If you 
wish to comment on the information collection aspects of this proposed 
rule, please send your comments directly to OMB and send a copy of your 
comments to the Regulations and Standards Branch (see the ADDRESSES 
section of this notice). Please reference; 30 CFR Part 250, Subpart S, 
Safety and Environmental Management Systems for Outer Continental Shelf 
Oil and Gas and Sulphur Operations, 1010-0186 in your comments. You may 
obtain a copy of the supporting statement for the new collection of 
information by contacting the Bureau's Information Collection Clearance 
Officer at (703) 787-1025.
    The PRA provides that an agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number. OMB is 
required to make a decision concerning the collection of information 
contained in these proposed regulations between 30 to 60 days after 
publication of this document in the Federal Register. Therefore, a 
comment to OMB is best assured of having its full effect if OMB 
receives it by October 14, 2011. This does not affect the deadline for 
the public to comment to BOEMRE on the proposed regulations.
    The title of the collection of information for the rule is 30 CFR 
part 250, subpart S, Safety and Environmental Management Systems for 
Outer Continental Shelf Oil and Gas and Sulphur Operations. Respondents 
are Federal OCS lessees, operators, and independent third-parties. 
Responses to this collection are mandatory. The frequency of response 
varies, but is primarily on occasion. The information collection (IC) 
does not include questions of a sensitive nature. BOEMRE will protect 
proprietary information according to the Freedom of Information Act (5 
U.S.C. 522) and its implementing regulations (43 CFR part 2); 30 CFR 
250.197, Data and information to be made available to the public or for 
limited inspection; and 30 CFR part 252, OCS Oil and Gas Information 
Program. BOEMRE will use the information to evaluate the effect of 
industry's continued improvement of OCS safety and environmental 
management and its compliance with the regulations. It should be noted 
that while this rulemaking adds additional burden hours to industry, 
the vast majority of these hours stem from expanding their current SEMS 
program, along with documenting and recordkeeping relative to these 
expanded requirements, to address issues raised in testimony, hearings, 
and reports being released about the Deepwater Horizon explosion and 
resulting oil spill.
    This proposed rulemaking would add 177,077 burden hours through 
expansion of some existing requirements and through new regulatory 
requirements to the 465,099 hours already approved for this subpart, 
for a total of 642,176 hour burdens. The burden table portrays only the 
Expanded and/or New requirements/burden hours that would be added to 
those already approved by OMB.

                                                  Burden Table
               [Italics show expansion of existing requirements; bold indicates new requirements]
----------------------------------------------------------------------------------------------------------------
                                   Reporting and                         Average number
Citation 30 CFR 250 subpart S      recordkeeping         Hour burden       of  annual        Additional annual
                                    requirement                             responses          burden hours
----------------------------------------------------------------------------------------------------------------
1900-1933 Expanded...........  High Activity          2,848...........  13 operators....  37,024.
                                Operator: * * * As
                                part of your SEMS,
                                you must also
                                develop and
                                implement written
                                procedures for SWA
                                and include item as
                                standard info
                                pertaining to SWA in
                                all JSA drills; plan
                                of action re
                                employee
                                participation and
                                implementation; UWA
                                info/designated
                                person; procedures
                                for employees to
                                report unsafe work
                                conditions * * *.
----------------------------------------------------------------------------------------------------------------
1900-1933 Expanded...........  Moderate Activity      2,188...........  41 operators....  89,708.
                                Operator: * * * As
                                part of your SEMS,
                                you must also
                                develop and
                                implement written
                                procedures for SWA
                                and include item as
                                standard info
                                pertaining to SWA in
                                all JSA drills; plan
                                of action re
                                employee
                                participation and
                                implementation; UWA
                                info/designated
                                person; procedures
                                for employees to
                                report unsafe work
                                conditions * * *.
----------------------------------------------------------------------------------------------------------------
1900-1933 Expanded...........  Low Activity           100.............  76 operators....  7,600.
                                Operator: * * * As
                                part of your SEMS,
                                you must also
                                develop and
                                implement written
                                procedures for SWA
                                and include item as
                                standard info
                                pertaining to SWA in
                                all JSA drills; plan
                                of action re
                                employee
                                participation and
                                implementation; UWA
                                info/designated
                                person; procedures
                                for employees to
                                report unsafe work
                                conditions * * *.
----------------------------------------------------------------------------------------------------------------
1911(b) Expanded.............  Direct supervisor and  1 min...........  130 operators x   4,745.
                                onsite supervisory                       365 days x 6 =
                                approval to conduct                      284,700*.
                                a JSA. Employee
                                participation and
                                signing.
----------------------------------------------------------------------------------------------------------------

[[Page 56690]]

 
1920(c); 1925(a), (c);         Submit to BOEMRE                 Burden already covered under 1010-0186.
 1926(e).                       after completed
                                audit, report of
                                findings and
                                conclusions,
                                including
                                deficiencies and
                                required supporting
                                information/
                                documentation.
----------------------------------------------------------------------------------------------------------------
1925(a); 1926(f).............  Pay for all costs                Burden already covered under 1010-0186.
                                associated with
                                BOEMRE directed
                                audit approximately
                                20 percent per
                                operator per
                                category: 3 required
                                audits for high
                                operator ($20,000
                                per audit x 3 audits
                                = $60,000); 8
                                required audits for
                                moderate operator
                                ($12,000 per audit x
                                8 audits = $96,000;
                                and 15 required
                                audits for low
                                operator ($9,000 per
                                audit per 15 audits
                                = $135,000) = 26
                                required audits per
                                year at a total
                                yearly combined cost
                                of $291,000.
----------------------------------------------------------------------------------------------------------------
1926(a), (d) New.............  Notify BOEMRE in       3...............  130 operators     129.
                                writing of                               once every 3
                                nomination of                            years = 43.
                                independent third
                                party auditor,
                                submit request 30
                                days prior to audit
                                re approval with
                                relevant
                                information; include
                                signed statement re
                                owned/controlled by
                                operator and submit
                                new nomination if
                                needed.
----------------------------------------------------------------------------------------------------------------
1928Expanded.................  * * * (4) SWA          2 hrs/mo x 12     1,007 manned      24,168.
                                documentation must     mos/yr = 24 hrs.  facilities.      ......................
                                be kept onsite for    30 mins.........  ................  1,224 (rounded)
                                30 days; retain                         2,447 unmanned
                                records for 2 years.                     facilities.
                                (5) Document and                        ................
                                retain employee
                                participation
                                records for 2 years.
                                (6) All
                                documentation
                                included in this
                                requirement must be
                                made available to
                                BOEMRE upon request.
----------------------------------------------------------------------------------------------------------------
1930(c) New..................  Document decision to   8...............  Once every 2      208.
                                resume SWA                               weeks = 26.
                                activities.
----------------------------------------------------------------------------------------------------------------
1932(d), (e) New.............  Upon request, provide  1...............  43 audits.......  43.
                                BOEMRE copy of
                                employee
                                participation
                                program; make
                                program available
                                during an audit.
----------------------------------------------------------------------------------------------------------------
1933(c) NEW..................  Employee reports       10 mins.........  1 oral..........  1 hour (rounded).
                                unsafe practices and/ 30 mins.........  1 written.......
                                or health violation.
----------------------------------------------------------------------------------------------------------------
1933(f) New..................  Post notice where      30 mins.........  3,454 facilities  1,727.
                                employees can view
                                employees' rights
                                for reporting unsafe
                                practices.
----------------------------------------------------------------------------------------------------------------
1933(h) New..................  Provide to all         10 mins.........  63,000 full/part  10,500.
                                employees unsafe                         time employees.
                                activities card with
                                relevant information.
----------------------------------------------------------------------------------------------------------------
Total Hour Burden to be added to 30 CFR 250, subpart S..................................  177,077 hours.
----------------------------------------------------------------------------------------------------------------
* We calculated operators conducting six JSAs a day (3 JSAs for each 12-hour shift). Some contractors may
  perform none for a particular day, whereas others may conduct more than six per day. This estimate is an
  average.

    BOEMRE specifically solicits comments on the following questions:
    (a) Is the proposed collection of information necessary for BOEMRE 
to properly perform its functions, and will it be useful?
    (b) Are the estimates of the burden hours of the proposed 
collection reasonable?
    (c) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (d) Is there a way to minimize the information collection burden on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology?
    In addition, the PRA requires agencies to estimate the total annual 
reporting and recordkeeping non-hour cost burden resulting from the 
collection of information. We have not identified any additional costs 
in this proposed rulemaking, and we solicit your comments on this item. 
For reporting and recordkeeping only, your response should split the 
cost estimate into two components: (a) Total capital and startup cost 
component, and (b) Annual operation, maintenance, and purchase of 
services component. Your estimates should consider the costs to 
generate, maintain, and disclose or provide the information. You should 
describe the methods you use to estimate major cost factors, including 
system and technology acquisition, expected useful life of capital 
equipment, discount rate(s), and the period over which you incur costs. 
Generally, your estimates should not include equipment or services 
purchased:
    (1) Before October 1, 1995;

[[Page 56691]]

    (2) To comply with requirements not associated with the information 
collection;
    (3) For reasons other than to provide information or keep records 
for the Government; or
    (4) As part of customary and usual business or private practices.

National Environmental Policy Act of 1969

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. BOEMRE has analyzed 
this proposed rule under the criteria of the National Environmental 
Policy Act and 516 Departmental Manual 15. This proposed rule meets the 
criteria set forth in 43 CFR 46.210 for a Departmental ``Categorical 
Exclusion'' in that this rule is `` * * * of an administrative, 
financial, legal, technical, or procedural nature. * * *'' Further, 
BOEMRE has analyzed this rule to determine if it meets any of the 
extraordinary circumstances that would require an environmental 
assessment or an environmental impact statement as set forth in 43 CFR 
46.215.
    Each section and subsection has also been reviewed to ensure that 
no potentially relevant extraordinary circumstances apply to the 
proposed action that would warrant the preparation of an environmental 
assessment or environmental impact statement. All extraordinary 
circumstances were considered in accordance with 43 CFR 46.215, but 
only the following ones are potentially applicable:
    a. Have significant and adverse impacts on public health or safety.
    b. Establish a precedent for future action or represent a decision 
in principle about future actions with potentially significant 
environmental effects.
    c. Have a direct relationship to other actions with individually 
insignificant but cumulatively significant environmental effects.
    The first extraordinary circumstance does not apply since rule 
promulgation would not contribute to any significant and adverse 
impacts on public health and safety. The SEMS program is likely to 
improve OCS safety, given the available incident data trends and 
associated 10 years of analysis. The second extraordinary circumstance 
does not apply since the promulgation of the rule or the eventual 
implementation of SEMS by operators does not set precedent for future 
actions or decisions by BOEMRE. The last extraordinary circumstance 
does not apply since there is no direct relationship between this 
rulemaking and other actions that could together contribute to 
cumulatively significant effects.
    Most subsections of the rule address strictly administrative, 
technical, and/or procedural matters. Specific examples include 
definitions of terminology, scope and timing of documentation, 
recordkeeping, and transfer of information, and general descriptions of 
what is to be included in written procedures. The rule does not create 
the potential for environmental effects as a result of new 
technologies, technology configurations, or technological procedures as 
such measures are not part of the rule. For aspects of the rule dealing 
with mechanical integrity and inspections, the requirements are 
procedural and technical as the rule covers the content of the written 
procedures. While the rule identifies the requirement, it allows the 
operator to choose the means to achieve compliance as long as the means 
are consistent with the SEMS requirements.
    Other subsections require activities in addition to administrative 
tasks, advance planning and procedural documentation, such as training 
and emergency response drills, and require corrective procedural 
actions that address human errors identified in investigations. These 
requirements are also considered procedural in nature since the 
subsections describe general and ordered steps that operators must 
undertake to have and maintain a compliant SEMS program. Subsections 
that require training of personnel on conducting drills are procedural 
in that they target the cognitive skills and knowledge of personnel 
(e.g., Sec.  250.1915(b)) and/or clarify the purpose and/or scope of 
training (e.g., Sec.  250.1918(c)). For example, in Sec.  250.1918, 
BOEMRE requires training and drills for personnel to exercise elements 
in the Emergency Action Plan that focus on response, control, and 
evacuation procedures and reporting. The principal purpose of this is 
to ensure retention of and refine the skills, knowledge, and abilities 
of personnel. BOEMRE concluded that this rule does not meet any of the 
criteria for extraordinary circumstances as set forth in 43 CFR 46.215.

Data Quality Act

    In developing this rule, we 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.

Clarity of This Regulation

    We are required by E.O. 12866, E.O. 12988, and by the Presidential 
Memorandum of June 1, 1998, to write all rules in plain language. This 
means that each rule we publish must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use clear language rather than jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, the sections where you feel lists or tables would be useful, 
etc.

Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

List of Subjects in 30 CFR Part 250

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Public lands--mineral resources, Reporting 
and recordkeeping requirements.

    Dated: September 9, 2011.
Ned Farquhar,
Deputy Assistant Secretary--Land and Minerals Management.

    For the reasons stated in the preamble, Bureau of Ocean Energy 
Management, Regulation and Enforcement (BOEMRE) proposes to amend 30 
CFR part 250 as follows:

[[Page 56692]]

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

    1. The authority citation for 30 CFR part 250 continues to read as 
follows:

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

    2. Amend Sec.  250.1902 by adding paragraphs (a)(14), (a)(15), 
(a)(16), and (a)(17) to read as follows:

Sec.  250.1902  What must I include in my SEMS program?

* * * * *
    (a) * * *
    (14) Stop Work Authority (see Sec.  250.1930).
    (15) Ultimate Work Authority (see Sec.  250.1931).
    (16) Employee Participation (see Sec.  250.1932).
    (17) Reporting Unsafe Work Conditions (see Sec.  250.1933).
* * * * *
    3. Amend Sec.  250.1903 by adding definitions of ``Management'' and 
``Mobile offshore drilling unit or MODU'' in alphabetical order to read 
as follows:

Sec.  250.1903  Definitions.

* * * * *
    Management means a team of individuals who have the day-to-day 
responsibilities for overseeing operations conducted on a facility or 
providing instruction to operational personnel, including but not 
limited to employees and contractors working on a facility or in the 
company's onshore offices.
    Mobile offshore drilling unit or MODU means a vessel capable of 
engaging in drilling well workover, well completion and well servicing 
operations for exploring or exploiting subsea oil, gas or other mineral 
resources.
* * * * *
    4. In Sec.  250.1911, revise paragraph (b) and add new paragraphs 
(c) and (d) to read as follows:

Sec.  250.1911  What criteria for Hazards Analyses must my SEMS program 
meet?

* * * * *
    (b) Job Safety Analysis (JSA). You must ensure a JSA is prepared, 
conducted, and approved for OCS activities that are regulated under 
BOEMRE jurisdiction that are identified or discussed in your SEMS 
program. The JSA is a technique used to identify risks to personnel 
associated with the activity and the appropriate mitigation to reduce 
these risks. The JSA must include all personnel involved with or 
affected by the activity being conducted. You must ensure that:
    (1) Your JSA identifies, analyzes, and records:
    (i) The steps involved in performing a specific job;
    (ii) The existing or potential safety and health hazards associated 
with each step; and
    (iii) The recommended action(s)/procedure(s) that will eliminate or 
reduce these hazards and the risk of a workplace injury or illness.
    (2) The immediate supervisor of the crew conducting the work must 
conduct the JSA, sign the JSA, and ensure that all personnel 
participating in the job sign as well.
    (3) The person onsite designated by the operator as the person in 
charge of the facility must approve and sign the JSA.
    (4) A single JSA remains sufficient provided that the relevant 
activity is recurring, without major changes to personnel, procedures, 
equipment, environmental conditions, or other major issues associated 
with that activity.
    (c) As part of your SEMS program, all employees and contractors who 
perform activities on the OCS that are regulated under BOEMRE 
jurisdiction must be trained on the methods of recognizing and 
identifying hazards, and the development and implementation of your 
JSA. You must provide training to these personnel within 30 days of 
employment, and not less than once every 12 months thereafter.
    (d) You must verify that contractors have received training and 
that contractor employees have understood the training.
    5. Amend Sec.  250.1915 by revising the introductory text and 
paragraphs (c) and (d) to read as follows:

Sec.  250.1915  What criteria for training must be in my SEMS program?

    Your SEMS program must establish and implement a training program 
so that all personnel who perform activities on the OCS that are 
regulated under BOEMRE jurisdiction are trained to work safely and are 
aware of potential environmental impacts offshore, in accordance with 
their duties and responsibilities. Training must address the methods of 
recognizing and identifying hazards and how to develop and implement 
JSAs (Sec.  250.1911), operating procedures (Sec.  250.1913), safe work 
practices (Sec.  250.1914), emergency response and control measures 
(Sec.  250.1918), stop work authority (Sec.  250.1930), ultimate work 
authority (Sec.  250.1931), employee participation program (Sec.  
250.1932), and the reporting of unsafe work conditions (Sec.  
250.1933).
* * * * *
    (c) Communication requirements to ensure that whenever a change is 
made to the methods of recognizing and identifying hazards and how to 
develop and implement JSAs (Sec.  250.1911), operating procedures 
(Sec.  250.1913), safe work practices (Sec.  250.1914), emergency 
response and control measures (Sec.  250.1918), stop work authority 
(Sec.  250.1930), ultimate work authority (Sec.  250.1931), employee 
participation program (Sec.  250.1932), or the reporting of unsafe work 
conditions (Sec.  250.1933), personnel will be trained in or otherwise 
given notice of the change before they are expected to operate the 
facility.
    (d) Identify how you will verify that the contractors are trained 
in the work practices necessary to perform their jobs in a safe and 
environmentally responsible manner, including training on the methods 
of recognizing and identifying hazards, and the implementation of JSAs 
(Sec.  250.1911), operating procedures (Sec.  250.1913), safe work 
practices (Sec.  250.1914), emergency response and control measures 
(Sec.  250.1918), stop work authority (Sec.  250.1930), ultimate work 
authority (Sec.  250.1931), employee participation program (Sec.  
250.1932), and the reporting unsafe of work conditions (Sec.  
250.1933).
    6. Amend Sec.  250.1920 by:
    a. Revising the first sentence of paragraph (a), and
    b. Revising paragraphs (b)(6) and (c) to read as follows:

Sec.  250.1920  What are the auditing requirements for my SEMS program?

    (a) You must have your SEMS program audited by an independent third 
party according to the requirements of this subpart and API RP 75, 
Section 12 (incorporated by reference as specified in Sec.  250.198) 
within two years of the initial implementation of the SEMS program and 
at least once every three years thereafter. * * *
    (b) * * *
    (6) Section 12.6 Audit Team. The audit that you submit to BOEMRE 
must be conducted by an independent third party. The independent third 
party must meet the requirements in Sec.  250.1926.
    (c) You must require the independent third party auditor to submit 
an audit report of the findings and conclusions of the audit to BOEMRE 
within 30 days of the audit completion date. The report must outline 
the results of the audit, including any deficiencies identified through 
the audit.
* * * * *
    7. Amend Sec.  250.1924 by:
    a. Revising the second sentence of paragraph (a), and

[[Page 56693]]

    b. Revising paragraph (b)(2) to read as follows:

Sec.  250.1924  How will BOEMRE determine if my SEMS program is 
effective?

    (a) * * * BOEMRE or its authorized representative may evaluate your 
SEMS program, including documentation of contractors, independent third 
parties, and auditors, and audit reports, to assess your SEMS program. 
* * *
    (b) * * *
    (2) The qualifications of the independent third party;
* * * * *
    8. Revise Sec.  250.1926 to read as follows:

Sec.  250.1926  What qualifications must an independent third party 
auditor meet?

    (a) You must nominate an independent third party to audit your SEMS 
program. The independent third party auditor must be capable of 
performing all tasks associated with a SEMS program audit. You must 
notify BOEMRE in writing of your nomination and must submit a request 
to BOEMRE for approval at least 30 days prior to your next audit. The 
request must state the name and address of the nominated individual or 
organization and the request must include the following listed items:
    (1) Qualifications of the individual or organization related to:
    (i) Education and previous experience with SEMS, or similar 
management related programs;
    (ii) Previous experience with BOEMRE regulatory requirements and 
procedures;
    (iii) Educational background and previous experience relevant to 
understanding and evaluating how the operator's offshore activities, 
raw materials, production methods and equipment, products, byproducts, 
and business management systems may impact health and safety 
performance in the workplace; and
    (2) A statement signed by the operator's management that the 
independent third party auditor is not owned or controlled by, or 
otherwise affiliated with, the operator's company:
    (b) You must have procedures to avoid conflicts of interest related 
to the development of your SEMS program and the independent third party 
auditor. If an independent third party developed and/or maintains your 
SEMS program, then that person and/or its subsidiaries cannot audit 
your SEMS program.
    (c) After evaluating the qualifications of the nominated 
independent third party auditor, BOEMRE may or may not approve your 
nomination.
    (d) If BOEMRE does not approve your nomination of an independent 
third party auditor, then you must submit a new nomination.
    (e) The independent third party auditor's audit report must meet 
the criteria in Sec.  250.1920(c) and the independent third party 
auditor must submit the audit report to BOEMRE and the operator. BOEMRE 
will notify the operator if BOEMRE accepts or rejects the audit report.
    (f) You are responsible for all of the costs associated with the 
audit.
    9. Amend Sec.  250.1928 by:
    a. Redesignating paragraph (f) as paragraph (h), and
    b. Adding new paragraphs (f) and (g) to read as follows:

Sec.  250.1928  What are my recordkeeping and documentation 
requirements?

* * * * *
    (f) For Stop Work Authority (SWA), you must document all training 
and reviews and must ensure that these records are kept on the facility 
for 30 days. You must retain these records for two years and make them 
available to BOEMRE upon request.
    (g) For Employee Participation, you must document that your 
employees participated in the development and implementation of the 
SEMS program, retain these records for two years and make them 
available to BOEMRE upon request.
* * * * *
    10. Add new Sec.  250.1930 to read as follows:

Sec.  250.1930  What must be included in my SEMS program for ``Stop 
Work Authority'' (SWA)?

    (a) Your SEMS program must include SWA procedures that authorize 
and make responsible any and all employees and other personnel 
(including contractors) who perform activities on the OCS that are 
regulated under BOEMRE jurisdiction and witness an activity that 
creates an imminent risk or danger to the health or safety of an 
individual, the public, or to the environment to immediately stop the 
work that is creating the risk or danger. In this section, imminent 
risk or danger means any conditions activities or practices in the 
workplace that could reasonably be expected to cause:
    (1) Death or serious physical harm immediately or before the risk 
or danger can be eliminated through enforcement procedures; or
    (2) Significant, imminent harm to land, air, aquatic, marine or 
subsea environments or resources.
    (b) The person in charge of a specific activity is responsible for 
ensuring the work is stopped in an orderly and safe manner. Individuals 
who receive a notification to stop work must comply with that direction 
immediately.
    (c) Work may be resumed upon a determination by the person on the 
facility with ultimate work authority that the imminent risk or danger 
that led to the stoppage does not exist or no longer exists. The 
decision to resume activities must be documented in writing as soon as 
practicable.
    (d) You must include SWA authority and expectations as a standard 
line item in all JSA drills.
    (e) You must conduct training on your SWA Policy and Program as 
part of all new employee and contractor orientations that perform 
activities on the OCS that are regulated under BOEMRE jurisdiction. 
Additionally, a review of the SWA Policy must be completed as part of 
all safety meetings.
    11. Add new Sec.  250.1931 to read as follows:

Sec.  250.1931  What must be included in my SEMS program for ``Ultimate 
Work Authority'' (UWA)?

    (a) For fixed and floating facilities (e.g., floating production 
systems; floating production, storage and offloading facilities; 
tension-leg platforms; and spars) and for MODUs performing activities 
under BOEMRE's jurisdiction, your SEMS program must identify the person 
with the ultimate work authority (UWA), i.e. the person located on the 
facility or MODU with the final responsibility for making decisions 
relating to activity and operations on the facility. This person must 
be designated by the operator taking into account all applicable Coast 
Guard regulations that deal with designating a ``person in charge'' (in 
accordance with USCG definition) of a MODU or OCS facility found in 33 
CFR 146.5 and 46 CFR 109.109. Your SEMS program must clearly define who 
is in charge at all times.
    (b) You must ensure that all personnel clearly know who has UWA and 
who is in charge of a specific operation or activity that are regulated 
under BOEMRE jurisdiction, including when that responsibility shifts to 
a different person.
    (c) The operator must ensure that all the provisions of its SEMS 
program are implemented on fixed and floating facilities, and on MODUs 
conducting activities under BOEMRE's jurisdiction.
    (d) The SEMS program must provide that if an emergency occurs that 
creates an imminent risk or danger to the health or safety of an 
individual, the public, or to the environment (as specified in Sec.  
250.1930(a)), the person with the UWA is authorized to pursue the most 
effective action necessary in that

[[Page 56694]]

person's judgment for mitigating and abating the conditions or 
practices causing the emergency.
    12. Add new Sec.  250.1932 to read as follows:

Sec.  250.1932  What are my employee participation program 
requirements?

    (a) Management must consult with their employees on the development 
and implementation of the company's SEMS program.
    (b) Management must develop a written plan of action regarding how 
appropriate employees, in both the operator's offices and working on 
offshore facilities, will participate in their SEMS program development 
and implementation.
    (c) You must provide each employee of the operator and each 
contractor access to your SEMS program.
    (d) Management must provide BOEMRE a copy of their employee 
participation program upon request.
    (e) Management must assure that their employee participation 
program is made available during an audit.
    13. Add new Sec.  250.1933 to read as follows:

Sec.  250.1933  What criteria must be included for reporting unsafe 
work conditions?

    (a) Your SEMS program must include procedures that address the 
reporting of unsafe work conditions. These procedures must include the 
existing Coast Guard unsafe working conditions reporting requirements 
found in 33 CFR 142.7 and 46 CFR 109.419.
    (b) The unsafe work conditions section of your SEMS program must 
ensure all personnel including the operator's employees contractor 
employees, as well as, contractors providing domestic services to the 
lessee or other contractors, including domestic services include 
janitorial work, food and beverage service, laundry service, 
housekeeping, and similar activities, who perform activities on the OCS 
that are under BOEMRE jurisdiction are covered by the program. An 
employee or contractor is not required to know whether a specific 
BOEMRE order or regulation has been violated in order to report unsafe 
conditions.
    (c) Any person may report to BOEMRE a possible violation of any 
BOEMRE order, standard, or regulation in this subchapter, or other 
Federal law relating to offshore safety, or any other hazardous or 
unsafe working condition on any facility engaged in OCS activities 
under BOEMRE jurisdiction. The report should contain sufficient 
credible information to establish a reasonable basis for BOEMRE to 
investigate whether a violation or other hazardous or unsafe working 
condition exists.
    (1) To report hazardous or unsafe working conditions or a 
violation, you can contact BOEMRE by:
    (2) [By Phone]: 1-877-440-0173 or 202-208-5646 (BOEMRE Safety 
Hotline).
    (3) [Write To]: U.S. Department of the Interior, Bureau of Ocean 
Energy Management, Regulation and Enforcement, Investigations and 
Review Unit, 1849 C Street, NW., MS-5560, Washington, DC 20240, 
Attention: IRU Hotline Operations. You should include the following 
items in your report:
    (i) Your name, address, and telephone number (Anonymous reports can 
be processed in regards to unsafe working activities. If you would like 
to make an anonymous safety-only report, please use the BOEMRE Safety 
Hotline listed above.);
    (ii) The specific order or regulation of BOEMRE, or the specific 
provision of Federal law in question (if known);
    (iii) Any other facts, data, and applicable information.
    (d) After reviewing the report and conducting any necessary 
investigation, BOEMRE will notify the operator of any deficiency or 
hazard and initiate enforcement measures as the circumstances warrant.
    (e) The identity of any person making a report under paragraph (c) 
of this section shall not be made available, without the permission of 
the reporting person, to anyone other than the employees of BOEMRE who 
have a need for the record in the performance of their official duties.
    (f) All operators must post a notice explaining personnel rights 
and remedies under this section. The notice must be posted at the place 
of employment in a visible location frequently visited by personnel.
    (g) Each operator must provide training to employees on unsafe work 
conditions policy within 30 days of employment, and not less than once 
every 12 months thereafter.
    (h) Each employee must be provided a card that contains the BOEMRE 
telephone number (1-877-440-0173) which employees can call to get 
information or report unsafe activities under this section.

[FR Doc. 2011-23537 Filed 9-13-11; 8:45 am]
BILLING CODE 4310-MR-P
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