27546 Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices

Land Management. Copies of the

exploration plan are available for review

during normal business hours in the

following offices (serialized under

number WYW136447): Bureau of Land

Management, Wyoming State Office,

2515 Warren Avenue, P.O. Box 1828,

Cheyenne, Wyoming 82003; and,

Bureau of Land Management, Casper

District Office, 1701 East ‘E’ Street,

Casper, Wyoming 82601.

SUPPLEMENTARY INFORMATION: This

notice of invitation will be published in

the The News-Record of Gillette,

Wyoming, Once each week for two

consecutive weeks beginning the week

of May 22, 1995, and in the Federal

Register. Any party electing to

participate in this exploration program

must send written notice to both the

Bureau of Land Management and

Antelope Coal Company no later than

thirty days after publication of this

invitation in the Federal Register. The

written notice should be sent to the

following addresses: Antelope Coal

Company, Attn: Tom Suchomel, Caller

Box 3009, Gillette, Wyoming 82717, and

the Bureau of Land Management,

Wyoming State Office, Home Base

Chief, Minerals and Lands

Authorization Group, P.O. Box 1828,

Cheyenne, WY 82003.

The foregoing is published in the

Federal Register pursuant to Title 43

Code of Federal Regulations, Section

3410.2–1(c)(1).

Michael J. Madrid,

Chief, Minerals/Lands Authorization Group,

Wyoming State Office.

[FR Doc. 95–12701 Filed 5–23–95; 8:45 am]

BILLING CODE 4310–22–M

[WY–920–05–1320–10; WYW136504]

Invitation for Coal Exploration License;

Campbell County, WY

AGENCY: Bureau of Land Management,

Interior.

ACTION: Invitation for Coal Exploration

License.

SUMMARY: Cordero Mining Co., a wholly

owned subsidiary of Kennecott Energy

and Coal Company, hereby invites all

interested parties to participate on a pro

rata cost sharing basis in its coal

exploration program concerning

federally-owned coal underlying the

following described land in Campbell

County, Wyoming:

T. 46 N., R. 71 W., 6th P.M., Wyoming,

Sec. 1: Lots 5 thru 20;

Sec. 11: Lot 16;

Sec. 12: Lots 4, 5, and 9 thru 16;

Sec. 13: Lots 1 thru 4, 7 and 8;

Sec. 14: Lot 1.

Containing 1,376.20 acres.

All of the coal in the above land

consists of unleased Federal coal within

the Powder River Basin Known Coal

Resource Area. The purpose of the

exploration program is to conduct

exploration drilling on the above listed

land.

ADDRESSES: A detailed description of

the proposed drilling program is

available for review during normal

business hours in the following offices

(under serial number WYW136504):

Bureau of Land Management, Wyoming

State Office, 4th Floor Public Room,

2515 Warren Avenue, P.O. Box 1828,

Cheyenne, Wyoming 82003; and,

Bureau of Land Management, Casper

District Office, Branch of Solid

Minerals, 1701 East ‘‘E’’ Street, Casper,

Wyoming 82601.

SUPPLEMENTARY INFORMATION: This

notice of invitation will be published in

the News-Record of Gillette, Wyoming,

once each week for two (2) consecutive

weeks and is expected to be published

beginning no later than the week of May

22, 1995, and in the Federal Register.

Any party electing to participate in this

exploration program must send written

notice to both the Bureau of Land

Management and the Cordero Mining

Co., no later than thirty (30) days after

publication of this invitation in the

Federal Register. The written notice

should be sent to the following

addresses: Bureau of Land Management,

Wyoming State Office (WSO 925–9),

Home Base Chief, Mineral/Lands

Authorization Group, Division of Land

and Minerals Authorization, P.O. Box

1828, Cheyenne, WY 82003–1828 and to

Cordero Mining Co., Attn: Mr. John

Trummel, Kennecott Energy Co., 505 S.

Gillette Avenue, Gillette, WY 82716.

The foregoing is published in the

Federal Register pursuant to Title 43

Code of Federal Regulations, Section

3410.2–1(c)(1).

Pamela J. Lewis,

Supervisory Land Law Examiner, Wyoming

State Office.

[FR Doc. 95–12702 Filed 5–23–95; 8:45 am]

BILLING CODE 4310–22–M

DEPARTMENT OF THE INTERIOR

Minerals Management Service

DEPARTMENT OF TRANSPORTATION

Research and Special Programs

Administration

Offshore Pipelines

AGENCIES: Minerals Management Service

(MMS), Interior. Research and Special

Programs Administration (RSPA),

Transportation.

ACTION: Notice of proposed revision of

memorandum of understanding (MOU)

and public meeting.

SUMMARY: The Department of the

Interior (DOI) and the Department of

Transportation (DOT) are proposing to

revise their May 6, 1976, MOU on their

respective responsibilities concerning

offshore pipelines. This action will

redefine the boundary lines over which

MMS and RSPA exercise their

inspection and enforcement roles,

giving MMS greater inspection

responsibilities over offshore pipelines

previously inspected by RSPA. The

intent of the new MOU is to put, to the

extent practicable, all flowlines and

gathering lines under DOI

responsibility, while transmission lines

remain under DOT responsibility. This

will result in more efficient utilization

of government resources for offshore

pipeline inspection. DOI and DOT will

hold a public meeting on this proposed

revision in New Orleans, Louisiana, on

August 1, 1995.

DATES: Comments must be submitted on

or before August 22, 1995.

ADDRESSES: Written comments should

be directed concurrently to: (a)

Department of the Interior; Minerals

Management Service; Mail Stop 4700;

381 Elden Street; Herndon, Virginia

22070–4817; Attention: Chief,

Engineering and Standards Branch, and

(b) Department of Transportation; Office

of Pipeline Safety Regulatory Programs,

Research and Special Programs

Administration; 400 Seventh Street SW.;

Room 2335; Washington, D.C. 20590;

Attention: L.E. Herrick.

PUBLIC MEETING: DOI and DOT will hold

a public meeting to receive comments

and to discuss the proposed MOU on

August 1, 1995, 8:30 a.m. to 5:00 p.m.,

Room 111; Minerals Management

Service; Gulf of Mexico Outer

Continental Shelf Region; 1201

Elmwood Park Boulevard; New Orleans,

Louisiana 70123–2394.

FOR FURTHER INFORMATION CONTACT:

Carl W. Anderson, Engineering and

Standards Branch, MMS; telephone

(703) 787–1600; or L.E. Herrick, Office

of Pipeline Safety Regulatory Programs;

telephone (202) 366–5523.

SUPPLEMENTARY INFORMATION:

Introduction

There are about 18,300 miles of active

Outer Continental Shelf (OCS) oil and

gas pipelines jointly regulated by DOI

and DOT under an MOU agreed upon in

1976 (41 FR 23746; June 11, 1976).

Under the existing MOU, DOI has
Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices 27547

primary responsibility for about 4,500

miles of these pipelines delegated to the

Minerals Management Service (MMS).

DOT has primary responsibility for

about 13,800 miles of these pipelines

delegated to RSPA. The MMS

regulations for pipelines in the OCS are

in 30 CFR part 250, Subpart J. The RSPA

pipeline safety regulations are in 49 CFR

parts 190–199.

The primary concerns with operating

pipelines offshore include protecting

life and property offshore, and

protecting the OCS from environmental

damage resulting from pipeline spills.

These issues are of paramount

importance to both MMS and RSPA.

The National Academy of Sciences

reported that while offshore oil and gas

production operations contribute less

than 2 percent by volume of the oil that

is spilled into the sea, pipelines

accounted for over 97 percent by

volume of that oil spilled from OCS

operations. These spills resulted almost

entirely from anchors, construction

operations, or fishing trawls that struck

the pipelines and caused them to

rupture.

Corrosion-related pipeline spills tend

to be minor compared to spills resulting

from external damage; however, because

the pipeline system is extensive and

aging, MMS and RSPA are also

concerned about oil spills resulting from

corrosion.

Separate MOU on Oil-Spill Response

Under a separate MOU among DOI,

DOT, and the U.S. Environmental

Protection Agency pursuant to the Oil

Pollution Act of 1990, the agencies have

divided their respective responsibilities

for oil-spill prevention and response

according to the definition of ‘‘coast

line’’ contained in the Submerged Lands

Act, 43 U.S.C. 1301(c). (See 59 FR 9494;

February 28, 1994.) Nothing herein is

intended to affect the implementation or

administration of that MOU.

Background

The DOT and DOI are proposing to

revise the current MOU that delineates

DOI’s and DOT’s respective boundaries

with respect to inspection of offshore

pipelines in the OCS. The MOU has

never been updated, even though there

have been many legislative, regulatory,

and administrative changes during the

past 19 years affecting the respective

inspection responsibilities that each

agency performs. These changes,

coupled with the differing regulatory

priorities and operating responsibilities

of the two organizations (MMS and

RSPA) charged with promulgating and

enforcing regulation over pipeline safety

and environmental protection in the

OCS, have rendered the MOU outdated.

For example, the current MOU predates

the following legislative and regulatory

developments:

(1) The formation of RSPA in 1977,

(2) The 1978 OCS Lands Act

Amendments,

(3) The formation of MMS in 1982,

(4) Amendments to the pipeline safety

laws (see 49 U.S.C. 60101 et seq.), and

(5) The Federal Water Pollution Control

Act as amended by the Oil Pollution

Act of 1990 and implemented under

Executive order 12777 of October

1991.

Under the current MOU, RSPA is

responsible for enforcing its design,

construction, operation, and

maintenance requirements on pipelines

transporting hazardous liquids and

natural gas ‘‘to the shore from the outlet

flange at——

(i) Each OCS facility where

hydrocarbons are produced, or

(ii) Each OCS facility where produced

hydrocarbons are first separated,

dehydrated, or otherwise processed,

whichever facility is farther

downstream, including subsequent online transmission equipment but not

including any subsequent production

equipment.’’

Also under the current MOU, MMS is

responsible for enforcing its design,

construction, operation, and

maintenance regulations on offshore

pipelines extending upstream from the

outlet flange described above into each

production well in the OCS. In this

regard, MMS has responsibilities for

promulgating and enforcing regulations

for the prevention of waste, protection

of the environment, conservation of

natural resources, production

measurement, and safety of OCS lessee

and right-of-way holder activities.

MMS has regulatory responsibilities

relating to activities performed in the

OCS. RSPA has responsibilities for

inspecting and enforcing its regulations

over all onshore pipeline systems in the

country. The revised MOU would result

in MMS assuming a greater inspection

responsibility for pipelines currently

under DOT responsibility. MMS would

integrate these additional pipelines into

its current inspection program.

Because the revised MOU would shift

the boundaries being used by MMS and

RSPA in inspecting under their

regulations, some OCS pipelines that are

currently subject to DOT regulations

governing their design, construction,

maintenance, and operations, would

become subject to DOI regulations

governing such requirements. This shift

in boundary for areas of responsibility—

generally from the first OCS facility

where hydrocarbons are produced,

separated, dehydrated, or otherwise

processed to the last such facility—will

require subsequent public rulemaking

changes by both DOT and DOI.

Following the final approval and

signing of the revised MOU, DOT and

DOI will separately propose changes to

their respective regulations to reflect the

new regulatory boundaries. The

principal regulations that would be

affected are found at 49 CFR parts 191.1,

192.1, 195.1 and 199 for DOT and at 30

CFR part 250.150 for DOI.

DOI anticipates that existing offshore

pipelines that shift from DOT to DOI

responsibility will not be immediately

subject to MMS design and construction

requirements unless: (1) those

requirements were a condition of MMS

approval for the right-of-way on which

the pipelines are located, or (2) the

pipeline undergoes major repair or

modification. Design and construction

requirements are those requirements

that are established when the pipeline is

initially designed and constructed, such

as pipe specifications, design of

pipeline components, and welding

procedures. Retrofitting existing

pipelines to conform to different design

and construction standards can involve

considerable risk to personnel and be

extremely costly. Therefore, DOI will be

cautious in imposing changes of this

type on pipeline operators heretofore

operating under DOT design and

construction requirements. On the other

hand, DOI operation and maintenance

regulations, such as corrosion

protection, operation and maintenance

plans, periodic inspections, and

periodic tests are requirements that can

be applied to pipelines any time after

construction. There are differences

between DOT and DOI regulations with

respect to these types of requirements

and their compliance costs. therefore,

any operator currently under DOT

responsibility who is shifted to DOI

responsibility—after implementation of

the revised MOU and appropriate

changes are promulgated for 30 CFR

part 250.150—will immediately become

subject to DOI operation, maintenance,

and inspection requirements.

Operators of pipelines that will

become subject to MMS regulatory

responsibility are reminded that MMS

has regulatory procedures under which

departures from its requirements may be

granted on a case-by-case basis,

provided there is sound engineering

analysis that shows the operation,

practice, or situation will provide an

equal or greater level of operational

safety or of environmental protection.

Comments are invited concerning (1)

the effect that the new MOU will have
27548 Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices

on offshore oil and gas lessees and

pipeline operators, (2) the time required

for operations currently operating under

DOT regulations to come into

compliance with DOI regulations, (3)

regulatory difficulties that may be

involved in complying with new

regulations, and (4) changes to the

proposed MOU that would facilitate the

implementation of the MOU.

Upon signing the proposed revised

MOU by both the Secretary of the

Interior and Secretary of Transportation,

the 1976 MOU will be terminated and

revised MOU will become effective. The

revised MOU will be published final in

a subsequent Federal Register Notice.

Dated: April 4, 1995.

Cynthia Quarterman,

Director, MMS.

Dated: May 16, 1995.

D.K. Sharma,

Administrator, RSPA.

The proposed revised MOU is as

follows:

Memorandum of Understanding

Between the Department of

Transportation and the Department of

the Interior Regarding Offshore

Pipelines

I. Introduction

This memorandum of Understanding

(MOU) replaces the MOU between the

Department of Transportation (DOT)

and the Department of the Interior (DOI)

regarding offshore pipelines which was

signed and became effective May 6,

1976, and which terminates as of the

effective date of this MOU. Nothing in

this MOU relieves an offshore pipeline

owner or operator from complying with

the regulations of any State or Federal

agency.

In recognition of each of the parties’

respective regulatory responsibilities,

DOI and DOT agree that an MOU is

needed to assure coordination and

consultation during the development

and implementation of regulatory

requirements and to facilitate

comparable regulatory requirements for

all offshore pipelines whether under

DOI or DOT jurisdiction.

II. Legislative and Regulatory

Responsibilities of the Parties

The DOT has the responsibility for

promulgating and enforcing regulations

for the safe and environmentally sound

transportation of gases and hazardous

liquids by pipeline. DOT administers

the following laws as they relate to

pipelines: (1) the pipeline safety laws

(49 U.S.C. 60101 et seq.), (2) the

Deepwater Port Act of 1974 (33 U.S.C.

1501–1524), and (3) the Federal Water

Pollution Control Act (FWPCA) (33

U.S.C. 1251–1375), as amended by the

Oil Pollution Act of 1990 (OPA) (Pub. L.

101–380) and implemented under

Executive Order (E.O.) 12777.

The DOI has responsibilities for

promulgating and enforcing regulations

for the prevention of waste, protection

of the environment, and conservation of

the natural resources of the Outer

Continental Shelf (OCS) as that area is

defined in the OCS Lands Act (OCSLA)

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

responsibilities include production

measurement and safety of OCS lessee

and right-of-way holder activities,

including transportation of oil and

natural gas by pipeline. DOI also has

certain responsibilities for granting

rights-of-way and rights of use and

easement for the construction of

pipelines and associated facilities in the

OCS. DOI administers the following

laws as they relate to offshore piplines:

(1) the OCSLA for the production of

minerals which includes their

transportation to shore, (2) the Federal

Oil and Gas Royalty Management Act of

1982 for oil and gas production

measurement, and (3) the FWPCA, as

amended by OPA and implemented

under E.O. 12777.

Under a separate MOU pursuant to

the OPA, DOI and DOT have divided

their respective responsibilities for oilspill prevention and response according

to the definition of ‘‘coast line’’

contained in the Submerged Lands Act,

43 U.S.C. 1301(c).

III. Division of Responsibilities

DOI and DOT agree to the following

division of off shore pipeline regulatory

responsibilities with respect to design,

construction, operations, and

maintenance regulations for all

pipelines in the OCS pursuant to

OCSLA. The Appendix contains nine

hypothetical cases to illustrate how this

MOU would be interpreted in practice.

DOI Responsibilities

1. DOI will establish and enforce

design, construction, operation, and

maintenance and regulations and

investigate significant accidents

pursuant to the OCSLA for all pipelines

that connect to downstream production

or processing facilities in the OCS. The

DOI area of responsibility will extend

from producing wells to 50 meters (164

feet) downstream from the base of the

departing pipeline riser on the last OCS

production or processing facility (Cases

1, 7, and 9). Additionally, DOI will have

responsibility for the following

pipelines:

a. That portion of a pipeline otherwise

subject to DOT responsibility that

crosses an OCS production or

processing facility from 50 meters

upstream of the base of the incoming

riser to 50 meters downstream of the

base of the department riser (Case 2).

b. A pipeline from an OCS producing

well or production or processing facility

to the first subsea tie-in with a largerdiameter pipeline in the OCS (Cases 3,

7, and 9). However, if the first subsea

tie-in with a larger-diameter pipeline is

in State waters, DOI responsibility

extends to the Federal-State boundary

(Case 6).

c. The OCS portion of a pipeline that

connects directly to a production well

or a production or processing facility in

State waters (Cases 4, 8, and 9).

d. The OCS portion of a pipeline from

an OCS producing well that connects

directly to production or processing

facilities located onshore (Case 5).

e. OCS production service and water

lines.

2. DOI will consult with DOT during

the development of regulatory

requirements and will send a copy of

each draft notice of proposed

rulemaking (NPR) concerning offshore

pipelines to DOT for review at least 30

days before the NPR is published in the

Federal Register. Publication of the NPR

by DOI is not contingent upon the

concurrence of DOT with the proposal

contained in the NPR.

3. Upon approval of right-of-way

applications for pipelines under DOT

responsibility, DOI will provide copies

of its approval letters to DOT. When

DOI grants rights-of-way for pipelines

which are under DOT responsibility,

DOI will condition its approval on the

pipelines being designed, constructed,

operated, and maintained in compliance

with DOT regulations.

4. The DOI will allow DOT to utilize,

on a reimbursable basis, DOI-contracted

helicopters for the inspection of offshore

pipelines, subject to helicopter

availability.

5. For pipelines under DOT

responsibility, DOI will report to DOT

in writing any apparent violation of

DOT regulations that is identified

during the course of DOI inspections.

DOT Responsibilities

1. DOT will establish and enforce

design, construction, operation, and

maintenance regulations and investigate

significant accidents for all offshore

pipelines beginning 50 meters (164 feet)

downstream from the base of the

departing pipeline riser on the last OCS

production or processing facility, except

as provided for in paragraphs 1, 1(a),

1(b), 1(c), 1(d), and 1(e) under ‘‘DOI

Responsibilities;’’ and paragraph 7

under ‘‘Joint Responsibilities.’’
Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices 27549

2. DOT will consult with DOI during

the development of regulatory

requirements and will send a copy of

each draft NPR concerning offshore

pipelines to DOI for review at least 30

days before the NPR is published in the

Federal Register. Publication of the NPR

by DOT is not contingent upon the

concurrence of DOI with the proposal

contained in the NPR.

3. For pipelines under DOI

responsibility, DOT will report to DOI

in writing any apparent violation of DOI

regulations that is identified during the

course of DOT inspections.

Joint Responsibilities

1. DOI and DOT will consult and

coordinate all of their respective

rulemaking efforts affecting offshore

pipelines. Supporting regulatory

analyses (e.g., Determination of Effects

of Rules, Regulatory Impact Analyses,

and information collection burdens,

etc.) will also be coordinated, although

the analyses will be appropriate for each

agency and the industry segments it

regulates.

2. DOI and DOT will coordinate all of

their respective research and

development projects concerning

offshore pipelines.

3. DOI and DOT may perform joint

inspections of pipeline segments that

are subject to both DOI and DOT

regulations.

4. DOI and DOT may perform joint or

independent investigations of accidents

involving offshore pipeline segments

that are subject to either or both DOI

and DOT responsibility.

5. DOI and DOT will provide each

other with any agreement or MOU with

any Federal or State agency concerning

offshore pipelines.

6. At least once each calendar year,

DOI and DOT will jointly review

existing standards, regulations, orders,

operating practices, and environmental

and safety issues concerning offshore

pipelines.

7. The DOI and DOT may, through

their enforcement agencies, agree to

exceptions to this MOU on a facility by

facility or area by area basis. Affected

parties shall be notified of such

exceptions.

IV. Implementation

Within 120 days of the signing of this

MOU, DOI and DOT will develop and

initiate a joint implementation plan.

The plan will take into account

differences in the regulatory

requirements of DOI and DOT that

could cause regulatory conflicts or

incompatible requirements for those

offshore pipeline segments that are

subject to both DOI and DOT

jurisdiction.

The respective points of contact for

the provisions of this MOU are:

Associate Administrator for Pipeline

Safety, Research and Special

Programs Administration, Department

of Transportation, 400 7th Street, SW.,

Washington, D.C. 20590

Associate Director for Offshore Minerals

Management, Minerals Management

Service, Mail Stop 4000, 1849 C

Street, NW., Washington, D.C. 20240

Thereafter, DOI and DOT will meet

periodically to review and update the

joint implementation plan and to review

this MOU for any needed revisions.

V. Modification

Either party to this agreement may

propose modifications by submitting

them in writing to the head of the other

Department. No modification may be

adopted except with the consent of both

parties. Both parties shall indicate their

consent to or disagreement with any

proposed modification within 60 days

of receipt. Upon the request of either

party, representatives of both parties

shall meet for the purpose of

considering modifications to this

agreement.

VI. Termination

This MOU may be terminated by

either party upon 60-day written notice

to the other party.

VII. Administration

This MOU will be administered by

DOI’s Minerals Management Service

and DOT’s Research and Special

Programs Administration or such

successor agencies as may be designated

by the respective Secretaries.

VIII. Effective Date

This MOU is in effect upon signature.

BILLING CODE 4310–MR–M
27550 Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices
Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices 27551
27552 Federal Register / Vol. 60, No. 100 / Wednesday, May 24, 1995 / Notices

[FR Doc. 95–12633 Filed 5–23–95; 8:45 am]

BILLING CODE 4310–MR–C