`[Federal Register Volume 65, Number 2 (Tuesday, January 4, 2000)]
[Rules and Regulations]
[Pages 217-219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC55


Update of Documents Incorporated by Reference

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: MMS is updating one document incorporated by reference and 
adding a new document incorporated by reference in regulations 
governing oil and gas and sulphur operations in the Outer Continental 
Shelf (OCS). The new editions of these documents incorporated by 
reference will ensure that lessees use the best available and safest 
technologies while operating in the OCS. The updated document, with 
Errata Change dated August 17, 1998, is the Second Edition of the 
American Petroleum Institute's (API) Recommended Practice for 
Classification of Locations for Electrical Installations at Petroleum 
Facilities Classified as Class I, Division 1 and Division 2 (API RP 
500). The new document, with Errata Change dated August 17, 1998, is 
the First Edition of the API's Recommended Practice for Classification 
of Locations for Electrical Installations at Petroleum Facilities 
Classified as Class I, Zone 0, Zone 1, and Zone 2 (API RP 505).

DATES: This rule is effective February 3, 2000. The incorporation by 
reference of publications listed in the regulation is approved by the 
Director of the Federal Register as of February 3, 2000.

FOR FURTHER INFORMATION CONTACT: Fred Gray, Operations Analysis Branch, 
at (703) 787-1027.

SUPPLEMENTARY INFORMATION: On March 19, 1999, we published a Notice of 
Proposed Rulemaking (64 FR 13535), titled ``Update of Documents 
Incorporated by Reference,'' revising the table in 30 CFR 250.101(e); 
250.403(b); 250.802(e)(4)(i); 250.803(b)(9)(i); 250.1628(b)(3) and 
(d)(4)(i); and 250.1629(b)(4)(i). Our 90-day comment period closed on 
June 17, 1999. We received four positive, supportive comments. This 
final rule amends the seven foregoing regulations. Please note that our 
final regulations revising 30 CFR 250, subpart A, relocated 
Sec. 250.101(e) to 250.198(e) and Sec. 250.403(b) to 250.114(a). This 
final rule reflects those changes.
    We use standards, specifications, and recommended practices 
developed by standard-setting organizations and the oil and gas 
industry for establishing requirements for activities in the OCS. This 
practice, known as incorporation by reference, allows us to incorporate 
the provisions of technical standards into the regulations without 
increasing the volume of the Code of Federal Regulations (CFR). The 
legal effect of incorporation by reference is that the material is 
treated as if it were published in the Federal Register. This material, 
like any other properly issued regulation, then has the force and 
effect of law. We hold operators/lessees accountable for complying with 
the documents incorporated by reference in our regulations. After the 
effective date of this rule, 85 private sector consensus standards will 
be incorporated by reference into the offshore operating regulations.
    The regulations found at 1 CFR part 51 govern how we and other 
Federal agencies incorporate various documents by reference. Agencies 
can only incorporate by reference through publication in the Federal 
Register. Agencies must also gain 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 specific edition or specific edition and supplement or addendum 
cited in the regulations.

Comments on the Rule

    We received comments from Noble Drilling Services, Inc.; Shell 
Offshore Inc. on behalf of itself and other affiliates of Shell Oil 
Company; Mahl & Associates, Inc.; and the International Association of 
Drilling Contractors. All commenters support the proposed rule 
incorporating by reference the two API documents.

Procedural Matters

    This is a very simple rule. The rule's purpose is to update one 
document that is currently incorporated by reference in the regulations 
and to add one additional document incorporated by reference. The 
differences between the newer document and the older document are very 
minor. The minor differences between the newer and older document will 
not cause a significant economic effect on any entity (small or large). 
Similarly, the addition of the new document, API RP 505, will not have 
a significant effect on any entity (small or large). Therefore, this 
regulation's impact on the entire industry is minor.

Federalism (Executive Order (E.O. 13132)

    According to E.O. 13132, this rule does not have Federalism 
implications. This rule does not substantially and directly affect the 
relationship between the Federal and State governments. This rule does 
not impose costs on States or localities. The rule simply addresses 
offshore structure design methods for lessee/operator consideration.

Takings Implication Assessment (E.O. 12630)

    According to E.O. 12630, this rule does not have significant 
Takings Implications. A Takings Implication Assessment is not required.

Regulatory Planning and Review (E.O. 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget under E.O. 12866.
    (1) This rule will not have an 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 rule would have no significant economic impact because the 
documents do not contain any significant revisions that will cause 
lessees or operators to change their business practices. The documents 
will not require the retrofitting of any facilities. The documents may 
lead to minor changes in operating practices, but the associated costs 
will be very minor.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. This rule 
simply grants lessee/operator additional flexibility when designing an 
offshore structure and will not affect any action of another agency.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients, because the documents do not address or affect any of 
these programs, rights or obligations.

[[Page 218]]

    (4) This rule does not raise novel legal or policy issues. This is 
a very simple rule which only addresses ordinary operational decisions 
of the lessee/operator and does not affect legal or policy issues.

Civil Justice Reform (E.O. 12988)

    According to E.O. 12988, the Office of the Solicitor has determined 
that this rule does not unduly burden the judicial system and meets the 
requirements of sections 3(a) and 3(b)(2) of the Order.

National Environmental Policy Act (NEPA) of 1969

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the NEPA is not required.

Paperwork Reduction Act of 1995

    There are no information collection requirements associated with 
this rule.

Regulatory Flexibility Act

    The Department certifies that this document 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.). The Small 
Business Administration (SBA) defines a small business as having:
     Annual revenues of $5 million or less for exploration 
service and field service companies.
     Fewer than 500 employees for drilling companies and for 
companies that extract oil, gas, or natural gas liquids.
    We estimate that there is a total of 1,380 firms that drill oil and 
gas wells onshore and offshore under the Small Business 
Administration's Standard Industrial Classification (SIC) 1381, 
Drilling Oil and Gas Wells. Of these, approximately 130 companies are 
offshore lessees/operators, based on current estimates. According to 
SBA estimates, 39 companies qualify as large firms, leaving 91 
companies qualified as small firms with fewer than 500 employees.
    Incorporation of the new document into MMS regulations would allow 
the offshore structure to be designed and built using either offshore 
electrical location classification method. Thus, incorporation of the 
new document will not impose new cost on the offshore oil and gas 
industry and may provide beneficial flexibility. The Department also 
determined that the indirect effects of this rule on small entities 
that provide support for offshore activities are small (in effect 
zero).
    Based on these reasons, this rule has no significant economic 
impact on the small entities.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small business 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 enforcement actions of MMS, 
call toll-free (888) 734-3247.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under 5 U.S.C. 804(2), SBREFA. This 
rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more. The final rule will not cause any significant costs to lessees 
or operators. The only costs will be the purchase of the new documents 
and minor revisions to some operating procedures. The minor revisions 
to operating procedures may result in some minor costs or may actually 
result in minor costs savings.
    (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 costs associated with this rule 
are either minor or may actually result in minor cost savings.
    (c) Does 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. This 
rule simply grants lessee/operator additional flexibility when 
designing an offshore structure and will not have any adverse effects.

Unfunded Mandates Reform Act (UMRA) of 1995

    This rule does not impose an unfunded mandate on State, local, and 
tribal governments or the private sector of more than $100 million per 
year. The rule does 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 UMRA (2 U.S.C. 1531 et seq.) 
is not required.

List of Subjects in 30 CFR Part 250

    Continental shelf, Environmental impact statements, Environmental 
protection, Government contracts, Incorporation by reference, 
Investigations, Mineral royalties, Oil and gas development and 
production, Oil and gas exploration, Oil and gas reserves, Penalties, 
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulphur development and 
production, Sulphur exploration, Surety bonds.

    Dated: November 22, 1999.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, MMS amends 30 CFR Part 250 
as follows:

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

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

    Authority: 43 U.S.C. 1331.

    2. In Sec. 250.198, in the table in paragraph (e), the entry for 
``API RP 500'' is revised to read as follows:


Sec. 250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

------------------------------------------------------------------------
                                               Incorporated by reference
              Title of document                            at
------------------------------------------------------------------------
 
*                  *                  *                  *
                            *                  *
API RP 500, Recommended Practice for           Sec.  250.114(a);
 Classification of Locations for Electrical    Sec.  250.802(e)(4)(i);
 Installations at Petroleum Facilities         Sec.  250.803(b)(9)(i);
 Classified as Class I, Division 1 and         Sec.  250.1628(b)(3);
 Division 2, Second Edition, November 1997,     (d)(4)(i);
 API Stock No. C50002.                         Sec.  250.1629(b)(4)(i).
 
*                  *                  *                  *
                            *                  *
------------------------------------------------------------------------


[[Page 219]]

    3. In Sec. 250.198, the following document incorporated by 
reference is added to the Table in paragraph (e) in alphanumerical 
order.


Sec. 250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

------------------------------------------------------------------------
                                               Incorporated by reference
              Title of document                            at
------------------------------------------------------------------------
 
*                  *                  *                  *
                            *                  *
API RP 505, Recommended Practice for           Sec.  250.114(a);
 Classification of Locations for Electrical    Sec.  250.802(e)(4)(i);
 Installations at Petroleum Facilities         Sec.  250.803(b)(9)(i);
 Classified as Class I, Zone 0, Zone 1, and    Sec.  250.1628(b)(3);
 Zone 2, First Edition, November 1997, API      (d)(4)(i);
 Stock No. C50501.                             Sec.  250.1629(b)(4)(i).
 
*                  *                  *                  *
                            *                  *
------------------------------------------------------------------------

    4. In Sec. 250.114, paragraph (a) is revised to read as follows:


Sec. 250.114  How must I install and operate electrical equipment?

* * * * *
    (a) You must classify all areas according to API RP 500, 
Recommended Practice for Classification of Locations for Electrical 
Installations at Petroleum Facilities Classified as Class I, Division 1 
and Division 2, or API RP 505, Recommended Practice for Classification 
of Locations for Electrical Installations at Petroleum Facilities 
Classified as Class I, Zone 0, Zone 1, and Zone 2.
* * * * *
    5. In Sec. 250.802, paragraph (e)(4)(i) introductory text is 
revised to read as follows:


Sec. 250.802  Design, installation, and operation of surface 
production-safety systems.

* * * * *
    (e) * * *
    (4) * * *
    (i) A plan for each platform deck outlining all hazardous areas 
classified according to API RP 500, Recommended Practice for 
Classification of Locations for Electrical Installations at Petroleum 
Facilities Classified as Class I, Division 1 and Division 2, or API RP 
505, Recommended Practice for Classification of Locations for 
Electrical Installations at Petroleum Facilities Classified as Class I, 
Zone 0, Zone 1, and Zone 2, and outlining areas in which potential 
ignition sources, other than electrical, are to be installed. The area 
outlined will include the following information:
* * * * *
    6. In Sec. 250.803, the last sentence of paragraph (b)(9)(i) is 
revised to read as follows:


Sec. 250.803  Additional production system requirements.

* * * * *
    (b) * * *
    (9) * * *
    (i) * * * A classified area is any area classified Class I, Group 
D, Division 1 or 2, following the guidelines of API RP 500, or any area 
classified Class I, Zone 0, Zone 1, or Zone 2, following the guidelines 
of API RP 505.
* * * * *
    7. In Sec. 250.1628, paragraphs (b)(3) and (d)(4)(i) are revised to 
read as follows:


Sec. 250.1628  Design, installation, and operation of production 
systems.

* * * * *
    (b) * * *
    (3) Electrical system information including a plan of each platform 
deck, outlining all hazardous areas classified according to API RP 500, 
Recommended Practice for Classification of Locations for Electrical 
Installations at Petroleum Facilities Classified as Class I, Division 1 
and Division 2, or API RP 505, Recommended Practice for Classification 
of Locations for Electrical Installations at Petroleum Facilities 
Classified as Class I, Zone 0, Zone 1, and Zone 2, and outlining areas 
in which potential ignition sources are to be installed;
* * * * *
    (d) * * *
    (4) * * *
    (i) A plan of each platform deck, outlining all hazardous areas 
classified according to API RP 500, Recommended Practice for 
Classification of Locations for Electrical Installations at Petroleum 
Facilities Classified as Class I, Division 1 and Divisions 2, or API RP 
505, Recommended Practice for Classification of Locations for 
Electrical Installations at Petroleum Facilities Classified as Class I, 
Zone 0, Zone 1, and Zone 2, and outlining areas in which potential 
ignition sources are to be installed;
* * * * *
    8. In Sec. 250.1629, the last sentence of paragraph (b)(4)(i) is 
revised to read as follows:


Sec. 250.1629  Additional production and fuel gas system requirements.

* * * * *
    (b) * * *
    (4) * * *
    (i) * * * A classified area is any area classified Class I, Group 
D, Division 1 or 2, following the guidelines of API RP 500, or any area 
classified Class I, Zone 0, Zone 1, or Zone 2, following the guidelines 
of API RP 505.
* * * * *
[FR Doc. 00-26 Filed 1-3-00; 8:45 am]
BILLING CODE 4310-MR-P`