[Federal Register Volume 87, Number 94 (Monday, May 16, 2022)]
[Proposed Rules]
[Pages 29790-29818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09560]



[[Page 29789]]

Vol. 87

Monday,

No. 94

May 16, 2022

Part II





Department of the Interior





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Bureau of Safety and Environmental Enforcement





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30 CFR Part 250





Oil and Gas and Sulfur Operations in the Outer Continental Shelf--High 
Pressure High Temperature and Subpart B Revisions; Proposed Rule

Federal Register / Vol. 87 , No. 94 / Monday, May 16, 2022 / Proposed 
Rules

[[Page 29790]]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2021-0003; EEEE500000 223E1700D2 ET1SF0000.EAQ000]
RIN 1014-AA49


Oil and Gas and Sulfur Operations in the Outer Continental 
Shelf--High Pressure High Temperature and Subpart B Revisions

AGENCY: Bureau of Safety and Environmental Enforcement, Interior.

ACTION: Proposed rule.

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SUMMARY: The Bureau of Safety and Environmental Enforcement (BSEE) is 
proposing to add requirements for new or unusual technology, including 
equipment used in high pressure high temperature (HPHT) environments, 
to revise and reorganize the information submission requirements for a 
project's Conceptual Plans and Deepwater Operations Plans (DWOP), and 
to require independent third parties to review certain information 
prior to submission to BSEE. This proposed rule would improve 
operational and environmental safety and human health while providing 
consistency and clarity to industry regarding the equipment and 
operational requirements necessary for BSEE review and approval of 
projects using new or unusual technology.

DATES: Send your comments on this proposed rule to BSEE on or before 
July 15, 2022. BSEE is not obligated to consider or include in the 
Administrative Record for the final rule comments that we receive after 
the close of the comment period (see DATES) or comments delivered to an 
address other than those listed below (see ADDRESSES). Information 
Collection Requirements: If you wish to comment on the information 
collection requirements in this proposed rule, please note that the 
Office of Management and Budget (OMB) is required to make a decision 
concerning the collection of information contained in this proposed 
rule between 30 and 60 days after publication of this proposed rule in 
the Federal Register. Therefore, comments should be submitted to OMB by 
June 15, 2022. The deadline for comments on the information collection 
burden does not affect the deadline for the public to comment to BSEE 
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) 
1014-AA49 as an identifier in your message. See also Public 
Availability of Comments under Procedural Matters.
    <bullet> Federal eRulemaking Portal: https://www.regulations.gov. 
In the entry titled Enter Keyword or ID, enter BSEE-2021-0003 then 
click search. Follow the instructions to submit public comments and 
view supporting and related materials available for this rulemaking. 
BSEE may post all submitted comments.
    <bullet> Mail or Hand-Carry Comments to BSEE: Attention: 
Regulations and Standards Branch, 45600 Woodland Road, VAE-ORP, 
Sterling VA 20166. Please reference RIN 1014-AA49, ``Oil and Gas and 
Sulfur Operations on the Outer Continental Shelf--High Pressure High 
Temperature and Subpart B Revisions,'' in your comments, and include 
your name and return address.
    <bullet> All API standards that are safety-related and that are 
incorporated into Federal regulations are available to the public for 
free viewing online in the Incorporation by Reference Reading Room or 
for purchase on API's website at: https://publications.api.org and 
https://www.api.org/products-and-services/standards/purchase, 
respectively.
    <bullet> NACE International (NACE) standards can be accessed 
through the American National Standards Institute (ANSI) Incorporated 
by Reference (IBR) Portal. The website can be accessed at: https://ibr.ansi.org.
    <bullet> For the convenience of the viewing public who may not wish 
to purchase or view the incorporated documents online, the documents 
may be inspected at BSEE's offices at: 1919 Smith Street, Suite 14042, 
Houston, Texas 77002 (phone: 1-844-259-4779), or 45600 Woodland Road, 
Sterling, Virginia 20166 (email: <a href="/cdn-cgi/l/email-protection#027067657142607167672c656d74"><span class="__cf_email__" data-cfemail="f486919387b496879191da939b82">[email protected]</span></a>), by appointment only.
    <bullet> Send comments on the information collection in this rule 
to: Interior Desk Officer 1014-0028, Office of Management and Budget; 
202-395-5806 (fax); email: <a href="/cdn-cgi/l/email-protection#b0dfd9c2d1efc3c5d2ddd9c3c3d9dfdef0dfddd29ed5dfc09ed7dfc6"><span class="__cf_email__" data-cfemail="83eceaf1e2dcf0f6e1eeeaf0f0eaecedc3eceee1ade6ecf3ade4ecf5">[email protected]</span></a>. Please send a 
copy to BSEE at <a href="/cdn-cgi/l/email-protection#94e6f1f3e7d4f6e7f1f1baf3fbe2"><span class="__cf_email__" data-cfemail="fe8c9b998dbe9c8d9b9bd0999188">[email protected]</span></a>.
    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. In order for BSEE to withhold from disclosure 
your personal identifying information, you must identify any 
information contained in your comment submittal that, if released, 
would constitute a clearly unwarranted invasion of your personal 
privacy. You must also briefly describe any possible harmful 
consequence(s) of the disclosure of information, such as embarrassment, 
injury, or other harm. While you may request that we withhold your 
personal identifying information from public review, we cannot 
guarantee that we will be able to do so.

FOR FURTHER INFORMATION CONTACT: For questions, contact Kirk Malstrom, 
Regulations and Standards Branch, (202) 258-1518, or by email: 
<a href="/cdn-cgi/l/email-protection#c3b1a6a4b083a1b0a6a6eda4acb5"><span class="__cf_email__" data-cfemail="a6d4c3c1d5e6c4d5c3c388c1c9d0">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Executive Summary

    Through this rulemaking, BSEE would improve operational safety and 
human health and environmental protections while providing industry 
with clarity and consistency regarding the submissions necessary for 
BSEE to review and approve operations using new or unusual technology. 
BSEE considers new or unusual technology to include equipment or 
procedures that have not been used previously or extensively under the 
anticipated operating conditions, or that have not been used previously 
in a particular BSEE Outer Continental Shelf (OCS) Region, or that have 
operating characteristics outside the performance parameters 
established in 30 CFR part 250. Currently, operations and equipment 
used in HPHT environments are relatively new on the United States OCS. 
In general, an HPHT environment is present when well conditions have 
pressures greater than 15,000 pounds per square inch absolute (psia) or 
have a temperature greater than 350 degrees Fahrenheit. Historically, 
oilfield equipment has not been designed to withstand these high 
pressures and temperatures. Working in an HPHT environment also 
increases the operational complexity because HPHT associated operations 
require the use of equipment that exists at the limits of current 
technology and without a long operational history. Due to limited 
industry experience in HPHT environments, there are few standards that 
directly address HPHT equipment and operations. Currently, BSEE 
carefully reviews HPHT projects on a case-by-case basis. To date, BSEE 
has received several applications for projects in an HPHT environment 
and anticipates HPHT project interest to increase due to equipment 
technological advancements and industry capabilities to develop 
resources in these environments.

[[Page 29791]]

    For new or unusual technology projects, including HPHT projects, 
BSEE regulations currently:
    <bullet> Require submission of information in a sequence that is 
not conducive to new or unusual technology projects because these 
projects require more BSEE review and approval upfront;
    <bullet> Lack specific equipment requirements because the 
technology is new and there are few applicable industry standards; and
    <bullet> Do not require submission of information in a way that 
best facilitates BSEE review.
    To address these issues, this rulemaking would:
    <bullet> Require submission of information in a sequence that 
provides both operators and BSEE the ability to evaluate whether a new 
or unusual technology project is economically and operationally 
feasible;
    <bullet> Add specific equipment requirements, particularly for 
barriers, through new regulations and incorporation of industry 
standards; and
    <bullet> Require Independent Third Party (I3P) review of operator 
submissions, in certain cases, or provide BSEE with the ability to 
require I3P review, to ensure project viability and safety.
    Currently, the DWOP process requires information to be submitted in 
two distinct phases: The Conceptual Plan phase and the DWOP approval 
phase. This rulemaking would revise the DWOP process to establish three 
stand-alone conceptual plans to address deepwater development projects, 
subsea tieback development technology, and new or unusual technology. 
The three proposed Conceptual Plans would be a Project Conceptual Plan, 
a New or Unusual Technology Conceptual Plan, or a New or Unusual 
Technology Barrier Conceptual Plan. A Project Conceptual Plan would be 
required for any project planned in water depths greater than 1,000 
feet or that will include the use of subsea tieback development 
technology regardless of water depth. A New or Unusual Technology 
Conceptual Plan would be required for any project or system involving 
new or unusual technology equipment or procedures. A New or Unusual 
Technology Barrier Conceptual Plan would be required for any project or 
system involving new or unusual technology equipment or procedures 
identified as a primary or secondary barrier to isolate hydrocarbons 
and or pressure from people and the environment. An operator must 
submit the applicable Conceptual Plan(s) and may be required to submit 
multiple Conceptual Plans based on specifics of the proposed project. 
Equipment or procedures that would be used in an HPHT environment would 
be considered new or unusual technology, and, for operations involving 
such equipment or procedures, an operator would be required to submit 
either a New or Unusual Technology Conceptual Plan or a New or Unusual 
Technology Barrier Conceptual Plan. The information specific to HPHT 
projects submitted in the applicable Conceptual Plan(s) or in the DWOP 
would be evaluated for adequacy prior to approval. Creation of the new 
Conceptual Plans and a new timing requirement--whereby these Conceptual 
Plans must be approved before any associated applicable permit (e.g., 
pipeline, platform, Application for Permit to Drill (APD), Application 
for Permit to Modify (APM)) approval--would provide both operators and 
BSEE the ability to evaluate whether a new or unusual technology 
project is economically and operationally feasible earlier in the 
project planning process, before permit approval.
    In addition, 30 CFR part 250, subpart B and the DWOP Process would 
be revised to incorporate the BSEE Barrier Concept into the 
requirements, including for new or unusual technology projects. The 
Barrier Concept is a holistic approach to the barrier system. BSEE 
considers a barrier or barrier system to be any engineered equipment, 
materials, component, or assembly that is intended to prevent the 
release of a hydrocarbon or other pressure source(s) that would cause 
harm to people or the environment. This proposed rulemaking would 
define, in subpart B, the types of equipment that BSEE considers to be 
barriers and how barriers must be used. Portions of the Barrier Concept 
would also be included in the DWOP Process under the New or Unusual 
Technology Barrier Conceptual Plan as a means of ensuring that new or 
unusual technology projects include sufficient barriers, which will 
enhance protections for people and the environment. This rulemaking 
would incorporate into regulations the existing BSEE policy on the 
Barrier Concept discussed in NTLs 2009-G36, Using Alternate Compliance 
in Safety Systems for Subsea Production Operations, 2019-G02, Guidance 
for Information Submissions Regarding Proposed High Pressure and/or 
High Temperature (HPHT) Well Design, Completion, and Intervention 
Operations, and 2019-G03, Guidance for Information Submissions 
Regarding Site Specific and Non-Site Specific HPHT Equipment Design 
Verification Analysis and Design Validation Testing.
    Furthermore, the DWOP Process would be revised to require I3P 
review of equipment or procedures identified in a New or Unusual 
Technology Barrier Conceptual Plan and allow BSEE to require an 
operator to use an I3P to review certain equipment or procedures 
identified in a New or Unusual Technology Conceptual Plan. Independent 
third parties have been utilized as a longstanding industry practice to 
support certifications and verifications that ensure project viability 
and safety. I3P review provides an additional review in circumstances 
where proposed equipment or processes may be technically complex and 
require a high degree of specialized engineering knowledge, expertise, 
and experience to evaluate.
    The Principal Deputy Assistant Secretary--Lands and Minerals 
Management takes this action pursuant to delegated authority.

Table of Contents

I. Background
    A. BSEE Statutory and Regulatory Authority and Responsibilities
    B. Purpose and Summary of the Rulemaking
    C. Summary of Documents Incorporated by Reference
II. Section-by-Section Discussion of Proposed Changes
III. Additional Comments Solicited
IV. Derivation Table
V. Procedural Matters

I. Background

A. BSEE Statutory and Regulatory Authority and Responsibilities

    BSEE derives its authority primarily from the Outer Continental 
Shelf Lands Act (OCSLA), 43 U.S.C. 1331-1356a. Congress enacted OCSLA 
in 1953, authorizing the Secretary of the Interior (Secretary) to lease 
the OCS for mineral development, and to regulate oil and gas 
exploration, development, and production operations on the OCS. The 
Secretary has delegated authority to perform certain of these functions 
to BSEE.
    To carry out its responsibilities, BSEE regulates offshore oil and 
gas operations to enhance the safety of exploration for and development 
of oil and gas on the OCS, to ensure that those operations protect the 
environment, and to implement advancements in technology. BSEE also 
conducts onsite inspections to assure compliance with regulations, 
lease terms, and approved plans and permits. Detailed information 
concerning BSEE's regulations and guidance to the offshore oil and gas 
industry may be found on BSEE's website at: https://www.bsee.gov/guidance-and-regulations.
    BSEE's regulatory program covers a wide range of OCS facilities and

[[Page 29792]]

activities, including drilling, completion, workover, production, 
pipeline, and decommissioning operations. Drilling, completion, 
workover, and decommissioning operations are types of well operations 
that offshore operators \1\ perform throughout the OCS. This rulemaking 
is applicable to these listed operational activities that involve 
deepwater development projects, subsea tieback development technology, 
projects or systems that use new or unusual technology, or barriers.
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    \1\ BSEE's regulations at 30 CFR part 250 generally apply to ``a 
lessee, the owner or holder of operating rights, a designated 
operator or agent of the lessee(s). . . .'' 30 CFR 250.105 
(definition of ``you''). For convenience, this preamble will refer 
to these regulated entities as ``operators'' unless otherwise 
indicated.
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B. Purpose and Summary of the Rulemaking

    The purpose of this rulemaking is to improve the requirements and 
information submission process for oil and gas operations in deepwater 
and for new or unusual technology equipment or procedures. The proposed 
regulations would achieve this purpose by adding requirements for new 
or unusual technology projects, including HPHT projects, by 
reorganizing the deepwater project information submission process, and 
by requiring I3P review of certain submissions.
    Together, these regulations would ensure that operators consider 
and submit sufficient information to BSEE at an early stage in the 
process so that the operator and BSEE can adequately address any issues 
concerning equipment selection, design, and fabrication.

C. Summary of Documents Incorporated by Reference

    This rulemaking would update one document currently incorporated by 
reference to a newer edition and would apply three documents already 
incorporated by reference to additional workover and completion 
operations. A brief summary of the proposed changes, based on the 
descriptions in each standard or specification, is provided in the 
following text.
    American National Standards Institute (ANSI)/API Specification 
(Spec.) 11D1, Packers and Bridge Plugs, Third Edition, April 2015.
    This specification provides minimum requirements and guidelines for 
packers and bridge plugs used downhole in oil and gas operations. The 
performance of this equipment is often critical to maintaining well 
control during drilling and production operations. This specification 
provides requirements for the design, design verification and 
validation, materials, documentation and data control, repair, 
shipment, and storage of packers and bridge plugs.
    ANSI/API Spec. 6A, Specification for Wellhead and Christmas Tree 
Equipment, October 2010; Addendum 1, November 2011; Errata 2, November 
2011; Addendum 2, November 2012; Addendum 3, March 2013; Errata 3, June 
2013; Errata 4, August 2013; Errata 5, November 2013; Errata 6, March 
2014; Errata 7, December 2014; Errata 8, February 2016; Addendum 4, 
June 2016; Errata 9, June 2016; Errata 10, August 2016.
    This specification defines requirements for the design of valves, 
wellheads and Christmas tree equipment that is used during drilling and 
production operations. This specification includes requirements related 
to dimensional and functional interchangeability, design, materials, 
testing, inspection, welding, marking, handling, storing, shipment, 
purchasing, repair and remanufacture.
    ANSI/API Spec. 17D, Design and Operation of Subsea Production 
Systems--Subsea Wellhead and Tree Equipment, Second Edition, May 2011; 
Addendum 1, September 2015; Errata, September 2011; Errata 2, January 
2012; Errata 3, June 2013; Errata 4, July 2013; Errata 5, October 2013; 
Errata 6, August 2015; Errata 7, October 2015.
    This specification provides requirements for subsea wellheads, 
mudline wellheads, and drill-through mudline wellheads, as well as 
vertical and horizontal subsea trees. These devices are located on the 
seafloor, and, therefore, ensuring the safe and reliable performance of 
this equipment is extremely important. This specification identifies 
the tooling necessary to handle, test and install the equipment. It 
also specifies the parameters for design, material, welding, quality 
control (including factory acceptance testing), marking, storing, and 
shipping for both individual sub-assemblies (used to build complete 
subsea tree assemblies) and complete subsea tree assemblies.
    NACE Standard MR0175-2003, Standard Material Requirements, Metals 
for Sulfide Stress Cracking and Stress Corrosion Cracking Resistance in 
Sour Oilfield Environments, Revised January 2003.
    This standard describes general principles and provides 
requirements and recommendations for the selection and qualification of 
metallic materials for equipment used in oil and gas production, and in 
natural-gas sweetening plants, in hydrogen sulfide (H<INF>2</INF>S)-
containing environments, where the failure of such equipment can pose a 
risk to the health and safety of the public and personnel or to the 
environment. Application of this standard can help avoid costly 
corrosion damage to equipment. This standard supplements, but does not 
replace, the material requirements contained in applicable design 
codes, standards, or regulations. This standard also addresses all 
mechanisms of cracking that can be caused by H<INF>2</INF>S, including 
sulfide stress cracking, stress corrosion cracking, hydrogen-induced 
cracking and stepwise cracking, stress-oriented hydrogen-induced 
cracking, soft zone cracking, and galvanically induced hydrogen stress 
cracking. This standard does not include, and is not intended to 
include design specifications.
    The American Petroleum Institute (API) provides free online public 
access to view read-only copies of its key industry standards, 
including a broad range of technical standards. All API standards that 
are safety-related and that are incorporated into Federal regulations 
are available to the public for free viewing online in the 
Incorporation by Reference Reading Room on API's website at: https://publications.api.org.\2\ In addition to the free availability of these 
standards on API's website, hardcopies and printable versions are 
available for purchase from API. The API website address to purchase 
standards is: https://www.api.org/products-and-services/standards/purchase.
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    \2\ BSEE's regulations at 30 CFR part 250 generally apply to ``a 
lessee, the owner or holder of operating rights, a designated 
operator or agent of the lessee(s). . . .'' 30 CFR 250.105 
(definition of ``you''). For convenience, this preamble will refer 
to these regulated entities as ``operators'' unless otherwise 
indicated.
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    NACE International (NACE) standards can be accessed through the 
American National Standards Institute (ANSI). The ANSI Incorporated by 
Reference (IBR) Portal provides access to many standards that have been 
incorporated by reference in the U.S. Code of Federal Regulations 
(CFR). These standards incorporated by the U.S. government in 
rulemakings are offered at no cost in ``read only'' format and are 
presented for online reading. However, there are no print or download 
options. The website can be accessed at: https://ibr.ansi.org.
    For the convenience of the viewing public who may not wish to 
purchase or view the incorporated documents online, the documents may 
be inspected at BSEE's offices at: 1919 Smith Street, Suite 14042, 
Houston, Texas 77002 (phone: 1-844-259-4779), or 45600

[[Page 29793]]

Woodland Road, Sterling, Virginia 20166 (email: <a href="/cdn-cgi/l/email-protection#fd8f989a8ebd9f8e9898d39a928b"><span class="__cf_email__" data-cfemail="b6c4d3d1c5f6d4c5d3d398d1d9c0">[email protected]</span></a>), by 
appointment only. An appointment is required to ensure personnel are 
available to accommodate the request and to account for competing 
agency obligations or concerns, including those related to public 
health and natural disasters. Additional information on where these 
documents can be inspected or purchased can be found at 30 CFR 250.198, 
Documents incorporated by reference, or by sending a request by email 
to <a href="/cdn-cgi/l/email-protection#601205071320021305054e070f16"><span class="__cf_email__" data-cfemail="4e3c2b293d0e2c3d2b2b60292138">[email protected]</span></a>.

II. Section-by-Section Discussion of Proposed Changes

    BSEE is proposing to revise the following regulations:

Subpart A--General

Definitions (Sec.  250.105)
    This rulemaking would add definitions for ``BOP systems and related 
equipment'' and ``HPHT environment.''
    The new definition of ``BOP systems and related equipment'' would 
include all pressure controlling and pressure containing well control 
equipment that may or will be exposed to the well's maximum anticipated 
surface pressure (MASP) during any phase of operation (i.e., drilling, 
completion, workover, intervention, or abandonment). The definition 
would also explain that well control equipment includes equipment that 
is installed for the purpose of pressure control and containment when 
it becomes necessary to physically enter a well bore during drilling, 
completion, workover, intervention, or abandonment modes of operation. 
The proposed definition of ``BOP systems and related equipment'' is 
consistent with how BSEE defined the term in NTL 2019-G03.
    The definition of HPHT environment would be moved from Sec.  
250.804(b) to this section and revised to include operations (1) that 
require equipment or well control equipment pressure rated for greater 
than 15,000 psia or temperature rated for greater than 350 degrees 
Fahrenheit; (2) where the MASP or shut in tubing pressure (SITP) is 
greater than 15,000 psia on the seafloor for a well with a subsea 
wellhead or at the surface for a well with a surface wellhead; or (3) 
with a flowing temperature greater than 350 degrees Fahrenheit measured 
on the seafloor for a well with a subsea wellhead or at the surface for 
a well with a surface wellhead. The proposed definition is consistent 
with BSEE's current definition of HPHT environments in Sec.  250.804(b) 
and is identical to the definition in NTL 2019-G03.
Service Fees (Sec.  250.125)
    This rulemaking would revise paragraph (a)(2) of Sec.  250.125 by 
adding new service fees for BSEE review of submittals associated with 
the DWOP Process. Specifically, this rulemaking would add service fees 
for processing a Project Conceptual Plan, New or Unusual Technology 
Conceptual Plan, New or Unusual Technology Barrier Conceptual Plan, 
revised DWOP, Combined Conceptual Plan/DWOP, and Supplemental DWOP. 
This rulemaking would also revise the cost recovery fee amount for DWOP 
approval to reflect current BSEE review and processing timeframes. 
These service and cost recovery fees would cover BSEE's costs for 
administrative and technical review of each identified submittal and 
processing.
Documents Incorporated by Reference (Sec.  250.198)
    This rulemaking would revise paragraph (e)(82) of Sec.  250.198, 
which incorporates ANSI/API Spec. 6A, Specification for Wellhead and 
Christmas Tree Equipment, to add new references to Sec. Sec.  250.518 
and 250.619, making this standard applicable to completion and workover 
operations. The changes to this paragraph are administrative to reflect 
changes made to Sec. Sec.  250.518 and 250.619 to reference this 
standard and are addressed further in the section-by-section discussion 
for these two sections.
    This rulemaking would revise paragraph (e)(86) of Sec.  250.198 to 
update the incorporation of ANSI/API Spec. 11D1 to the third edition of 
that standard. BSEE reviewed the new edition and differences between 
the second and third editions of ANSI/API Spec. 11D1 and determined 
that the third edition is appropriate to incorporate into the 
regulations. The ANSI/API Spec. 11D1 third edition now includes an 
improved testing procedure for design verification and validation of 
packers and bridge plugs. The most significant change from the second 
edition to the third edition was the addition of the enhanced 
validation of the testing processes.
    This rulemaking would revise paragraph (e)(91) of Sec.  250.198, 
which incorporates ANSI/API Spec. 17D, Design and Operation of Subsea 
Production Systems--Subsea Wellhead and Tree Equipment, Second Edition, 
to add new references to Sec. Sec.  250.518 and 250.619, making this 
standard applicable to completion and workover operations. The changes 
to this paragraph are administrative and reflect changes made to 
Sec. Sec.  250.518 and 250.619 and are addressed further in the 
section-by-section discussion for these two sections.
    This rulemaking would also revise paragraph (i)(1) of Sec.  
250.198, which incorporates NACE Standard MR0175-2003, Standard 
Material Requirements, Metals for Sulfide Stress Cracking and Stress 
Corrosion Cracking Resistance in Sour Oilfield Environments, Revised 
January 17, 2003, to add new references to Sec. Sec.  250.518 and 
250.619, making this standard applicable to completion and workover 
operations. The changes to this paragraph are administrative and 
reflect changes made to Sec. Sec.  250.518 and 250.619 and are 
addressed further in the section-by-section discussion for these two 
sections.

Subpart B--Plans and Information

    BSEE is proposing to reorganize this subpart to incorporate new 
requirements and to ensure that information is submitted in an 
appropriate sequence. Many of the current provisions in this subpart 
would be moved into other sections within this same subpart without 
change. This section-by-section discussion identifies where BSEE 
proposes to move the content of the current provisions, explains 
proposed revisions to existing language, and proposes new provisions. 
For more information on these changes, BSEE has included a derivation 
table in Section IV of this notice.
    The proposed rule would restructure Subpart B--Plans and 
Information, under the following undesignated headings:

--General Information
--Barrier Equipment and Systems
--Activities and Post-Approval Requirements for the EP, DPP, DWOP, AND 
DOCD
--Deepwater Operations Plan (DWOP) Process
--Conceptual Plans
--DWOP Approval.
General Information
Definitions (Sec.  250.200)
    This rulemaking would revise paragraph (a) of Sec.  250.200 by 
adding the acronym for HPHT. These are all common terms that are used 
throughout this subpart.
    This rulemaking would also revise paragraph (b) of Sec.  250.200 by 
adding, revising, or eliminating the following definitions, as noted:
    <bullet> Add definition for ``Barrier categorization'' to identify 
barriers as one of the following two categories:
    [cir] Category 1 Barrier, which would mean any equipment, 
component, or

[[Page 29794]]

assembly that functions as part of a primary barrier system during any 
operational phase of its life cycle. The operational phases of the 
barrier equipment, component or assembly are drilling, completion, 
workover, intervention, injection, production, or abandonment; and
    [cir] Category 2 Barrier, which would mean any equipment, 
component, or assembly that normally functions as part of a secondary 
barrier system in all operational phases of its life cycle, except when 
a primary barrier fails. The operational phases of the barrier 
equipment, component or assembly are drilling, completion, workover, 
intervention, injection, production, or abandonment. BSEE may consider 
non-barrier structural components of a barrier system as Category 2 
barriers, if failure of this structural component could reasonably 
result in a barrier failure.
    <bullet> Add a definition for Primary Barrier system, which would 
mean the component, or group of components that is designated as the 
principle means of isolating the source of hydrocarbons and/or pressure 
from people and the environment.
    <bullet> Add the definition for Secondary Barrier system, which 
would mean the component or group of components that is designated as 
the secondary means of isolating the source of hydrocarbons and/or 
pressure from people and the environment. The secondary barrier system 
would be redundant to the primary barrier system as long as the primary 
barrier remains intact.
    <bullet> Revise the definition for ``new or unusual technology'' to 
include equipment or procedures used for any drilling, completion, 
workover, intervention, injection, production, pipeline, platform, 
decommissioning, or abandonment operation that meets any of the 
following criteria:
    (1) Has not been approved for use or used extensively in a BSEE OCS 
Region;
    (2) Has not been approved for use or used extensively under the 
anticipated operating conditions;
    (3) Has operating characteristics that are outside the performance 
parameters established in 30 CFR part 250;
    (4) Will operate in an HPHT environment as defined in proposed 
(Sec.  250.105); or
    (5) Is part of a primary or secondary barrier system that uses 
materials, design analysis techniques, validation testing methods or 
manufacturing processes not addressed in existing industry standards. 
This is intended to include any existing industry standard and is not 
limited to those standards incorporated by reference in BSEE 
regulations.
    These revisions would provide improved clarity regarding operations 
that BSEE has determined involve new or unusual technology and provide 
consistency for operators when actions would need to be taken using new 
or unusual technology.
    <bullet> Replace the definition for ``non-conventional production 
or completion technology'' with ``subsea tieback development 
technology.'' The definition of ``subsea tieback development 
technology'' would still include the current examples of floating 
production systems, tension leg platforms, spars, Floating Production 
Storage and Offloading Vessel (FPSO) systems, guyed towers, compliant 
towers, subsea manifolds, and subsea production components and would 
add subsea wells, hybrid wells, and other subsea completion components 
to the list of examples. This proposed term revision is intended to 
provide clarity and reflect the current nomenclature for this 
technology.
    <bullet> Remove the definitions of ``modification,'' ``offshore 
vehicle,'' ``resubmitted OCS plan,'' ``revised OCS plan,'' and 
``supplemental OCS plan.'' These terms are currently not used elsewhere 
in this subpart and are residual from when BSEE separated these 
regulations from BOEM requirements (see 76 FR 64432).
What plans and information must I submit before I conduct any 
activities on my lease or unit? (Sec.  250.201)
    This rulemaking would revise existing paragraph (a) of Sec.  
250.201 to reflect the creation of the New or Unusual Technology 
Conceptual Plan, New or Unusual Technology Barrier Conceptual Plan, and 
the Project Conceptual Plan. This section provides general information 
about each plan and identifies when BSEE approval is necessary. 
Paragraph (a) would also clarify when each plan approval is required 
for certain activities. An operator is only required to submit the 
applicable conceptual plan(s). Each of these conceptual plans are 
standalone plans and are not contingent upon approval of each other. 
For example, if an operator plans to use new or unusual technology 
barrier equipment, they would only be required to submit a New or 
Unusual Technology Barrier Conceptual Plan, they would not be required 
to submit a New or Unusual Technology Conceptual Plan as well.
    This rulemaking would also remove existing paragraph (c), which 
includes the limiting information provisions. The limiting information 
provisions allow the Regional Director to limit the amount of 
information or analyses required to be included with the submitted 
plans or documents, covered by this subpart, under certain conditions. 
The limiting information provisions are not used by BSEE and are 
residual from when BSEE separated these regulations from BOEM 
requirements (see 76 FR 64432).
How must I protect the rights of the Federal government? (Sec.  
250.202)
    The content of this proposed section would be moved from existing 
Sec.  250.204 without revision.
Are there special requirements if my well affects an adjacent property? 
(Sec.  250.203)
    The content of this proposed section would be moved from existing 
Sec.  250.205 without revision.
Requirements for High Pressure High Temperature (HPHT) Barrier 
Equipment (Sec.  250.204)
    This proposed section is new and clarifies what information an 
operator would be required to submit to BSEE if the operator plans to 
install HPHT barrier equipment. This section cross-references the 
applicable DWOP Process requirements associated with the New or Unusual 
Technology Barrier Conceptual Plan. These additions are necessary to 
help ensure that the equipment is fit for service in the specific HPHT 
environment. BSEE's review and approval of information submitted during 
the DWOP Process is intended to occur in conjunction with BSEE review 
and approval of associated applications or permits (e.g., APD, APM, 
pipeline, and production safety system).
Barrier Equipment and Systems
What equipment does BSEE consider to be a barrier? (Sec.  250.206)
    This section would codify some of the barrier concepts from BSEE 
NTL 2009-G36. Many parts of existing BSEE regulations under Subparts D, 
E, F, G, H, J and Q are dedicated to establishing barrier requirements. 
This section would clarify that BSEE considers a barrier or barrier 
system to be any engineered equipment, materials, component, or 
assembly that is installed to contain a hydrocarbon or other pressure 
source(s) to prevent harm to people or the environment. BSEE only 
recognizes barriers (non-mechanical or mechanical in nature) that are 
either permanently or temporarily installed, pressure controlling, and/
or pressure containing barriers. Pressure controlling barriers must be 
able to be activated on demand. This rulemaking would also

[[Page 29795]]

clarify that barriers or barrier systems are required to be able to 
function and/or be pressure tested repeatedly to defined acceptance 
criteria. If the barrier or barrier system is classified as Safety and 
Pollution Prevention Equipment (SPPE) (as described under Sec.  
250.801(a)), then it must also be compliant with the leak test 
requirements established in Subpart H. Any specific engineered 
equipment, materials, components, or assembly that exist within a 
barrier system that are not tested would not be considered a barrier. 
This section would not alter or impact any existing regulation; it only 
documents a principle that is the basis of many BSEE regulations.
    These barrier concepts are based on BSEE's viewpoint that abnormal 
conditions and/or failures are potential risks in a well or pipeline 
system. When an abnormal condition or failure occurs, it must be 
detectable, and upon detection, it is important to isolate its source 
behind redundant barriers. Primary or Secondary Barrier equipment may 
include, but is not limited to:

<bullet> Wellhead system, such as the high pressure housing, production 
casing hangers, and seal assemblies
<bullet> Tubing head
<bullet> Tubing hanger
<bullet> Tree, including all valves, fittings, and chokes
<bullet> Surface Controlled Subsurface Safety Valve (SCSSV), including 
all associated safety valve locks and landing nipples
<bullet> Capping stack
<bullet> BOP
<bullet> Completion workover riser system (CWOR)
<bullet> Surface flowhead used above a CWOR
<bullet> Subsea test tree (SSTT)
<bullet> Wellhead connector
<bullet> Landing nipples and tubing plugs
<bullet> Production liner hanger/packer
<bullet> Packers
<bullet> Pipeline boarding shutdown valve
<bullet> Flowline riser
<bullet> High integrity pressure protection system (HIPPS), including 
all equipment between the HIPPS and the tree
<bullet> Well top tension riser systems
<bullet> Production tubing
<bullet> Production casing
<bullet> Production liner
<bullet> Production casing and liner cement
<bullet> Production tubing, casing, and liner threaded connections
<bullet> Production liner hanger/packer
<bullet> Flowline jumpers
<bullet> Jumper connectors
<bullet> Manifolds
<bullet> Pipeline End Termination (PLETs)
<bullet> Pipeline End Manifolds (PLEMs)
<bullet> Flowlines
<bullet> Umbilicals
<bullet> Any other pressure containing or pressure controlling 
equipment from the production liner within the well through the last 
barrier in a subsea production, BOP, or intervention system.
How must barrier systems be used? (Sec.  250.207)
    Under this section, operators would be required to install and 
maintain a primary and secondary barrier system to prevent a loss of 
containment during any operational phase of a well, flowline, pipeline, 
production, or riser system. It is BSEE's goal to prevent loss of 
containment by minimizing single point failures wherever possible. 
Given the probability that any barrier may fail during its service life 
due to age, corrosion, wear, damage, environment or accidents, the best 
mitigation is redundancy. This section would not alter or impact any 
existing regulation; it only documents a principle that is the basis of 
many BSEE regulations.
Activities and Post-Approval Requirements for the EP, DPP, DWOP, and 
DOCD
How must I conduct activities under an approved EP, DPP, or DOCD? 
(Sec.  250.208)
    The content of this proposed section would be similar to the 
language in 30 CFR 550.280, How must I conduct activities under the 
approved EP, DPP, or DOCD? During the regulatory split between BSEE and 
BOEM, the content of this section was inadvertently removed from this 
part; however, the content is still applicable to BSEE and should be 
included in this part, as well as in 30 CFR part 550.
What must I do to conduct activities under the approved EP, DPP, or 
DOCD? (Sec.  250.209)
    The content of this proposed section would be similar to the 
language in 30 CFR 550.281, What must I do to conduct activities under 
the approved EP, DPP, or DOCD? paragraphs (a) and (b). During the 
regulatory split between BSEE and BOEM, the content of this section was 
inadvertently removed from this part; however, the content is still 
applicable to BSEE and should be included in this part, as well as in 
30 CFR part 550.
Do I have to conduct post-approval monitoring? (Sec.  250.210)
    The content of this proposed section would be moved from Sec.  
250.282. This section would also add minor revisions to clarify that 
the Regional Supervisor may direct operators to conduct monitoring 
programs in association with their approved EP, DPP, DWOP, or DOCD.
What are my new or unusual technology failure reporting requirements? 
(Sec.  250.211)
    This proposed section is new and would clarify the new or unusual 
technology failure reporting requirements. Currently, BSEE does not 
receive new or unusual technology failure data associated with approved 
DWOPs; however, BSEE has recently requested new or unusual technology 
failure data as a condition of DWOP approval. This section would 
require an operator to notify BSEE within 30 days of a failure and 
provide a written report identifying the root causes of the failure. 
This new section is intended to provide BSEE with a better 
understanding of operational limitations of equipment associated with 
an approved DWOP. Existing failure and incident reporting requirements 
in Sec. Sec.  250.188, What incidents must I report to BSEE and when 
must I report them?, 250.730, What are the general requirements for BOP 
systems and system components?, and 250.803, What SPPE failure 
reporting procedures must I follow? may be used to help fulfill the new 
or unusual technology failure reporting requirements of this section. 
This section is not a substitute for other currently applicable failure 
or incident reporting requirements. Even though BSEE requires the 
operator to perform a risk assessment, failure mode analysis, design 
verification analysis, and validation testing on all new or unusual 
technology, a failure could still occur. Operating experience is an 
important tool for comprehensively understanding all possible issues 
with new technologies. BSEE has approved many new technologies for 
operators in the OCS. Even with successful implementation, new 
technology is often modified based on lessons learned during its use 
and application on the OCS. If a failure occurs on a new or unusual 
technology that was installed, BSEE may not approve this same new or 
unusual technology for installation again until we comprehensively 
understand the root cause of the failure and we confirm that the 
failure can be mitigated. Therefore, it is important for all failures 
to be reported.
Deepwater Operations Plan (DWOP) Process
What is the DWOP Process? (Sec.  250.220)
    The content of this proposed section would be moved from Sec.  
250.286 and

[[Page 29796]]

would contain the following revisions and additions:
    Paragraph (a) of Sec.  250.220 would clarify that the DWOP Process 
is not only used for review of subsea tieback development technology, 
but also applies to deepwater development projects and other projects 
or systems that use new or unusual technology during any phase of 
drilling, completion, workover, intervention, injection, production, 
pipeline, platform, decommissioning, or abandonment operations. These 
additions clarify when the DWOP Process is necessary and correspond 
with the proposed additions of DWOP Process new or unusual technology 
requirements.
    Paragraph (b) would add that the DWOP Process does not replace 
other BSEE applications or permits (e.g., APD, APM, pipeline, and 
platform). Other minor revisions to this paragraph reflect the 
corresponding additions to the proposed new or unusual technology 
requirements for the DWOP Process.
    Paragraph (c) would clarify that the DWOP Process consists of two 
phases: The Conceptual Plans and the DWOP. The current DWOP regulations 
do not differentiate between the DWOP Process and the DWOP plan itself, 
as they currently use the term DWOP to refer to both. This proposed 
section would clarify the terms and is intended to reduce confusion 
about the different phases of the DWOP Process. The proposed DWOP 
requirements are not intended to require the submittal of a DWOP for 
operations not currently covered under the DWOP plan stage (e.g., 
drilling and decommissioning), but would require submittal of the 
appropriate Conceptual Plan. Proposed Sec. Sec.  250.227 through 
250.229 would identify the contents of the Conceptual Plans. Proposed 
Sec. Sec.  250.236 through 250.242 would identify what the DWOP must 
contain.
When must I use the DWOP Process? (Sec.  250.221)
    The content of this proposed section would be moved from Sec.  
250.287 and would clarify that the DWOP Process is applicable to any 
project in water depths greater than 1000 feet and to any project that 
will include the use of subsea tieback development technology, 
regardless of water depth, or new or unusual technology for any 
drilling, completion, workover, intervention, injection, production, 
pipeline, platform, decommissioning, or abandonment operations. These 
revisions provide consistency and reflect corresponding additions to 
the proposed new or unusual technology and DWOP requirements.
    DWOPs have always been required when a development is situated in 
water depths of 1000 feet or greater or when subsea tieback development 
technology is used in any water depth. BSEE proposes to codify our 
existing practices to include the expansion of new or unusual 
technology. This rulemaking would also add requirements for the DWOP 
Process when any new or unusual technology is used for drilling, 
completion, workover, intervention, injection, production, pipeline, 
platform, decommissioning, or abandonment projects. This would provide 
consistency for all new or unusual technology reviews.
Conceptual Plans
What are the types of Conceptual Plans that I must submit? (Sec.  
250.225)
    This proposed section is new and would identify the three types of 
proposed Conceptual Plans:
    <bullet> A Project Conceptual Plan is required for any project that 
is planned in water depths greater than 1000 feet or will include the 
use of subsea tieback development technology, regardless of water depth 
(see proposed Sec.  250.221 paragraphs (a)(1) and (2));
    <bullet> A new or unusual technology Conceptual Plan is required 
for any project or system that involves equipment or systems that are 
considered new or unusual technology (see proposed Sec.  250.200 for 
the definition of new or unusual technology); and
    <bullet> A new or unusual technology Barrier Conceptual Plan is 
required for any project or system involving new or unusual technology 
that is also identified as a primary or secondary barrier (see proposed 
Sec.  250.200 for the definition of primary or secondary barriers).
    This proposed section would add clarity by describing the proposed 
types of Conceptual Plans. The proposed requirements for each 
Conceptual Plan are discussed in the applicable corresponding sections, 
Sec. Sec.  250.227 through 250.229. An operator must submit the 
applicable Conceptual Plan(s) based on specifics of the proposed 
project. The operator may be required to submit multiple Conceptual 
Plans.
When and how must I submit each applicable Conceptual Plan? (Sec.  
250.226)
    The content of this proposed section would be moved from Sec. Sec.  
250.288 and 250.290 and revised to clarify that the operator must 
submit its Conceptual Plans to the Regional Supervisor after the 
operator decides on the general concept(s) for a project or system, and 
before it begins final engineering design of the equipment, well, well 
safety control system, or subsea production systems. These revisions 
would help ensure that the operator considers the information 
associated with the proposed Conceptual Plans before application or 
permit (e.g., APD, APM, pipeline, platform) approval. Once an operator 
begins final engineering design, it is generally too late to address 
changes to design and fabrication that may affect an entire project and 
may significantly delay project approval if such changes are necessary. 
This rulemaking would add a table to organize and clarify information 
associated with the three types of proposed Conceptual Plans.
    Proposed paragraph (a) of Sec.  250.226 would include content from 
Sec.  250.290 and would further clarify that Project Conceptual Plan 
approval would be required before completion of any production or 
injection well, or installation of the tree.
    Proposed paragraph (b) would add the following requirements 
regarding a New or Unusual Technology Conceptual Plan:

--The operator may not install any new or unusual technology until BSEE 
approves the New or Unusual Technology Conceptual Plan;

    BSEE must approve the New or Unusual Technology Conceptual Plan 
before BSEE may approve any associated application or permit (e.g., 
pipeline, platform, APD, APM); and

--The Regional Supervisor may require the operator to use an I3P to 
perform certain functions and verifications in accordance with Sec.  
250.231, as applicable. This addition would allow BSEE to use I3P 
services for new or unusual technology reviews that may involve 
technically complex engineering and require a high degree of 
specialized engineering knowledge, expertise, and experience to 
evaluate and help ensure appropriate reviews are conducted for the new 
or unusual technology.

    These revisions would help ensure that operators consider the 
information associated with the proposed Conceptual Plans before 
application submittal, which would allow for changes to be considered 
in the design and fabrication process, potentially saving operators 
significant time and expense. This would also establish a formalized 
process for BSEE to review new or unusual technology technologies.

[[Page 29797]]

    Proposed paragraph (c) would add the following requirements 
regarding a New or Unusual Technology Barrier Conceptual Plan:

--The operator must submit a New or Unusual Technology Barrier 
Conceptual Plan for any project or system involving new or unusual 
technology that is also identified as a primary or secondary barrier;
--BSEE must approve the New or Unusual Technology Barrier Conceptual 
Plan prior to new or unusual technology barrier equipment installation;
--BSEE must approve the new or unusual technology barrier equipment 
before BSEE may approve of any associated application or permit (e.g., 
pipeline, platform, APD, APM); and
--An operator submitting a New or Unusual Technology Barrier Conceptual 
Plan must use an I3P to perform certain functions and verifications in 
accordance with proposed Sec.  250.231, What are the I3P review 
requirements for Conceptual Plan reviews?

    These revisions would help ensure that operators consider the 
information associated with the proposed conceptual plans before 
application submittal, thereby allowing for changes to be considered in 
the design and fabrication process, potentially saving operators 
significant time and expense. This would also establish a formalized 
process for BSEE to review new or unusual technology barrier 
technologies.
What must the Project Conceptual Plan contain? (Sec.  250.227)
    This proposed section would require a Project Conceptual Plan to 
include the basis of design that the operator would use to develop the 
field. Proposed paragraphs (a), (b), (c), and (i)(1) of Sec.  250.227 
would reflect content of existing Sec.  250.289. In addition, this 
section would require the operator to include the following information 
in the Project Conceptual Plan:

--Confirmation that the subsea production safety system will comply 
with Subpart H;
--For a new facility, a description of the type of facility the 
operator plans to install (e.g., Spar, Tension Leg Platform (TLP), 
FPSO, etc.);
--For a subsea tieback to an existing facility, a statement identifying 
whether a minor or major structural modification will be made to the 
facility and the facility's remaining design life. If modifications 
will be made to the existing facility, a calculation of the facility's 
remaining design life and explanation of how the modifications will 
impact the design life;
--A statement regarding whether the host facility will be manned or 
unmanned;
--A schedule of development activities, including well completion, 
facility installation, and date of first oil;
--Schematics, including:
    [cir] A well location plat;
    [cir] A subsea field schematic depicting the planned development 
infrastructure that contains the wells, pipelines, riser systems, 
umbilical(s), and facility footprint;
    [cir] The surface or subsea tree;
    [cir] Wellbore and completion schematic for a typical well 
(including SCSSV location and chemical injection points; and depiction 
of, or statement of whether there will be gas zones behind the 
production casing or production liner and how they will be isolated); 
and
    [cir] Information concerning the drilling and completion systems.
--The estimated shut-in tubing pressure for the proposed well(s), 
including the calculation used to arrive at the estimate, specifying 
true vertical depth (TVD), reservoir pressure, and the fluid gradient 
used, or a brief discussion of the pressure volume temperature (PVT) 
data used for estimation;
--The wellbore static bottomhole temperature and the estimated flowing 
temperature at the tree;
--The pressure and temperature rating of the tree and wellhead;
--Identify if there will be corrosive production (e.g., H<INF>2</INF>S, 
carbon dioxide (CO<INF>2</INF>), Mercury (Hg) or injection fluids 
(e.g., acid), including concentrations;
--Identify whether any proposed equipment will be re-furbished and re-
certified;
--Identify whether enhanced recovery is planned for the early life of 
the project;
--Identify whether any new or unusual technology will be used to 
develop your project involving the following activities: Drilling, 
completion, injection, production, pipeline, or platform;
--Identify whether the well(s) will include smart completion 
technology; and
--Payment of the service fee listed in Sec.  250.125.

    BSEE currently requests and receives information similar to 
information listed in these proposed revisions for current conceptual 
plan approval. These revisions would codify current BSEE practices and 
provide BSEE with sufficient information to review Project Conceptual 
Plans. These revisions would also provide clarity and consistency for 
operator submittals of the Project Conceptual Plan. This rulemaking 
would also align the DWOP Process requirements with the current 
electronic system for submitting applicable plans.
    These revisions would help ensure that operators consider the 
information associated with the Project Conceptual Plan before 
application submittal and allow for potential changes to be considered 
in the design and fabrication process, potentially saving operators 
significant time and expense.
What must the New or Unusual Technology Conceptual Plan contain? (Sec.  
250.228)
    Proposed paragraph (a) of Sec.  250.228 would require the following 
information to be included in the New or Unusual Technology Conceptual 
Plan:

--How the New or Unusual Technology Conceptual Plan fits within the 
overall site-specific project, if applicable, including an overview of 
the project development concepts;
--Description of the technology and specific conditions under which it 
will be used;
--Description of shut-in capabilities and procedures;
--Description of redundancies of critical components or systems that 
will be used;
--Discussion of how the technology could impact the barrier system, if 
any, including the detection method for technology failure and how the 
barrier functions to a fail-safe state when impacted by new or unusual 
technology failure;
--Information on inspection and testing capabilities;
--A risk assessment and failure mode analysis;
--Operating procedures;
--History of development and application of the technology;
--The basis of design, including design verification and validation 
testing;
--Detailed schematics;
--Justification for new or unusual technology use, and any additional 
information required for a complete review;
--A list of any requested alternate procedures or equipment in 
accordance with Sec.  250.141 and requested departures in accordance 
with Sec.  250.142;
--A certification statement that the technology is fit for service in 
the applicable environment for the specific project location; and

[[Page 29798]]

--Payment of the service fee listed in Sec.  250.125.

    Proposed paragraph (b) would allow for the Regional Supervisor to 
require the use of an I3P according to proposed Sec.  250.230 if the 
system or equipment requires a high degree of specialized or 
technically complex engineering knowledge, expertise, and experience to 
evaluate, or is not addressed in existing industry standards. This 
addition would help BSEE ensure that the equipment or process is 
appropriate for use in the specific environmental and operating 
conditions. In addition, the Regional Supervisor would be able to 
require operators to follow I3P requirements under Sec.  250.231, on a 
case-by-case basis. Finally, this section would instruct operators to 
direct any questions about I3P requirements for New or Unusual 
Technology Conceptual Plans to the Regional Supervisor.
    BSEE currently requests and receives information for conceptual 
plans similar to what would be required by these revisions. These 
revisions would codify current BSEE practices and would ensure BSEE 
consistently receives sufficient information for New or Unusual 
Technology Conceptual Plan review. These revisions would also provide 
clarity and consistency for operator submittal of the New or Unusual 
Technology Conceptual Plan. Similar information is presently required 
or requested of operators and provided to BSEE for review in the 
current DWOP Process.
What must the New or Unusual Technology Barrier Conceptual Plan 
include? (Sec.  250.229)
    This proposed section would require the following information to be 
included in the New or Unusual Technology Barrier Conceptual Plan:

--Description of how the New or Unusual Technology Barrier Conceptual 
Plan fits within the overall site specific project, if applicable, 
including an overview of the project development concepts and a 
proposed schedule for submittal of associated conceptual plans;
--Diagram depicting the primary and secondary barriers, including all 
components, assemblies or sub-assemblies labeled and categorized as 
Category 1 barriers or Category 2 barriers;
--List of the primary and secondary barriers that include all 
components, assemblies, or sub-assemblies, specifying each assigned 
barrier as either a Category 1 barrier or Category 2 barrier;
--List of the engineering standards that will be used in the 
equipment's material selection and qualification, design verification 
analysis, and design validation testing;
--List of requested alternate procedures or equipment in accordance 
with Sec.  250.141 or requested departures in accordance Sec.  250.142;
--List of the functional requirements (i.e., environmental, and 
physical loads (magnitude and frequency)) for which the barrier 
equipment is being designed;
--Description of the barrier equipment's safety critical functions, 
(i.e., function(s) performed by or inherent to the equipment enabling 
it to achieve or maintain a safe state);
--An I3P nomination, in accordance with proposed Sec.  250.230 
paragraph (a); and
--An I3P verification plan that includes:
    --Discussion of the barrier equipment's material selection and 
qualification;
    --Discussion of the barrier equipment's design verification 
analyses;
    --Discussion of the barrier equipment's design validation testing;
    --Explanation of why the analyses, processes, and procedures ensure 
that the barrier equipment is fit for service in the applicable 
environment; and
    --Details regarding how the I3P will address the additional items 
listed in proposed Sec.  250.231;
--I3P reports as required in proposed Sec.  250.232; and
--Payment of the service fees listed in Sec.  250.125.

    Proposed paragraph (l) would clarify that, after BSEE receives all 
of the required I3P reports, the operator must submit a certification 
statement that the barrier equipment is fit for service in the 
applicable environment (for the specific project location).
    BSEE currently requests and receives information in conceptual 
plans similar to these proposed revisions. These revisions would 
provide clarity and consistency for operator submittal of the New or 
Unusual Technology Barrier Conceptual Plan, codify existing BSEE 
practices, and would provide BSEE with sufficient information for 
proper New or Unusual Technology Barrier Conceptual Plan review and, if 
warranted, approval.
What are the requirements for the Independent Third Party (I3P) 
nomination? (Sec.  250.230)
    This proposed section would outline the requirements for the 
operator to nominate an I3P to be used in conjunction with applicable 
Conceptual Plans. Paragraph (a) would add the nomination criteria for 
the I3P to review the design verification and design validation 
classification of the Original Equipment Manufacturer (OEM), including 
that the I3P must be a technical classification society, a licensed 
professional engineering firm, or a registered professional engineer 
capable of providing the required certifications and verifications. 
This paragraph would also clarify that the I3P nomination must be 
submitted to BSEE for approval and must include the following 
information:

--Previous experience in third-party verification or experience in the 
design, fabrication, or installation of applicable offshore oil and gas 
equipment;
--Technical capabilities of the individual or the primary staff for the 
specific project;
--Size and type of organization or corporation;
--In-house availability of, or access to, appropriate technology to 
review the specific project (this should include computer programs, 
hardware, and testing materials and equipment as applicable);
--Ability to perform the I3P functions for the specific project 
considering current commitments (e.g., project timelines, schedules, 
and personnel availability); and
--Previous experience with BSEE requirements and procedures.

    This proposed section would help ensure that BSEE is informed of 
the I3P competencies and show that the I3P is qualified to perform the 
required verifications and certifications of this subpart.
    Paragraph (b) would require that operators allow the I3P to access 
all associated documentation and equipment related to items in proposed 
Sec.  250.229(i) to perform the complete reviews in accordance with 
proposed Sec.  250.231. This may include OEM documents or access to the 
fabrication and manufacturing locations. The operator is responsible 
for ensuring that the I3P has the appropriate information to complete 
the required verifications and certifications. This documentation is 
necessary for the I3P to conduct its review and verify, as appropriate, 
that the equipment is designed and manufactured to operate within its 
specified operating limits.
    Multiple I3Ps may be used to conduct the applicable verifications. 
These proposed revisions are not intended to limit the number of I3Ps, 
as operators may need multiple I3Ps to cover

[[Page 29799]]

multiple types of equipment covered under all applicable Conceptual 
Plans.
What are the I3P review requirements for Conceptual Plan reviews? 
(Sec.  250.231)
    This proposed section identifies the requirements for the I3P 
review. Paragraph (a) would require the I3P to review the following 
information regarding the applicable equipment or system:

--Basis of Design, Technical Specification (if known at this point in 
the design process) and Functional Requirements (i.e., environmental, 
and physical loads (magnitude and frequency));
--Risk assessment and failure mode analysis;
--Material specification, selection, qualification, and testing;
--Design verification analysis, including a structural/strength 
analysis and fatigue assessment and/or analysis;
--If fatigue is identified as a potential failure mode in the required 
fatigue assessment and/or analysis, the plan to record and gather data 
(i.e., load monitoring) in order to conduct a future fatigue analysis;
--Design validation testing; and
--Fabrication, quality management system, and inspection and test 
plan(s) that identifies the quality control/quality assurance process, 
and inspection of the final products.

    Paragraph (b) would require the I3P to submit a report to BSEE 
documenting the review of each item covered under paragraph (a) of this 
section. This paragraph would also require each report to identify all 
OEM and operator documents used during the I3P reviews.
    Paragraph (c) would require the I3P to submit a final report to 
BSEE that summarizes each of the review requirements covered under 
paragraph (a) of this section. This paragraph would also require the 
final report to include the equipment and/or system's technical 
specifications, including a certification statement that the equipment 
and/or system is fit for purpose for the technical specification by the 
I3P, and verification that the equipment's technical specifications 
meet or exceed the project's functional requirements, including a 
certification statement that the equipment and/or system is fit for 
purpose for the proposed project by the I3P.
    Paragraph (d) would clarify that, for any subsequent I3P review of 
equipment and/or system's technical specification that was previously 
approved in the operator's New or Unusual Technology Barrier Conceptual 
Plan, the Regional Supervisor may accept a final report in accordance 
with Sec.  250.231(c), including the existing certification covered 
under paragraph (c)(1) of this section, in lieu of reports required in 
paragraph (b). The I3P would be required to submit an updated 
certification statement in accordance with Sec.  250.231(c)(2) for the 
specific project.
    This section would require I3P review of all new or unusual 
technology Category 1 or Category 2 barrier equipment to help minimize 
the risk of loss of containment on new barrier equipment through 
reliance on the principle of qualified redundant barrier systems. The 
concept of using an I3P review process has been used in the regulations 
for various operations (e.g., Sec. Sec.  250.914 through 250.918, 
250.420, and 250.732). The I3P review process within Sec.  250.231, 
would be the same process described in NTL 2019-G03 ``Guidance for 
Information Submissions Regarding Site Specific and Non-Site Specific 
HPHT Equipment Design Verification Analysis and Design Validation 
Testing.'' The industry is currently using this NTL for the design 
verification and validation analysis for HPHT barrier equipment that 
will be used in the Gulf of Mexico. The verification processes in this 
section would be similar to the basic engineering design and 
manufacturing methodologies found in many existing engineering 
standards.
General Requirements for Any I3P Report (Sec.  250.232)
    This proposed section would clarify expectations for the I3P 
reports. This rulemaking would require that an I3P report must be a 
standalone document that clearly summarizes the verification work 
performed and must contain a sufficient level of detail (i.e., 
quantitative information) and clarity to establish the basis of the 
I3P's findings and recommendation(s). Each report would be required to 
identify the OEM or operator documents reviewed, the detailed I3P 
review, and convey the results of the I3P's review without requiring 
BSEE to review any other referenced document. This section would 
establish basic expectations for I3P reports and provide consistency 
and uniformity for operator submittals and BSEE reviews. These reports 
are an important tool for BSEE to conduct appropriate reviews and it is 
imperative to ensure that these reports are comprehensive and clear. 
These reports also contain information necessary for audit purposes.
DWOP Approval
When and how must I submit the DWOP? (Sec.  250.235)
    The content of this proposed section would be moved from Sec.  
250.291, and would be revised to clarify that a DWOP must be submitted 
to the Regional Supervisor after BSEE has approved the operator's 
project conceptual plan and the operator has substantially completed 
system design, and before the operator conducts post-completion 
installation activities for a deepwater development project, or for any 
project that will involve the use of subsea tieback development 
technology in any water depth, which may include new or unusual 
technology or new or unusual technology barrier equipment. This section 
would also clarify that operators cannot begin production from the well 
until BSEE approves the DWOP. The revisions to this section would help 
ensure that there is enough time for BSEE to review a DWOP, including 
resolution of any potential issues, prior to DWOP approval. The 
operator should consider the DWOP requirements when beginning to 
procure or fabricate the safety and operational systems (other than a 
tree, because operators may install a tree after Conceptual Plan 
approval), production platforms, pipelines, or other parts of the 
production system.
What information must I submit with the DWOP? (Sec.  250.236)
    This proposed section is organizational in nature and would 
identify the types of information that the operator must submit with 
the DWOP by adding a table that lists the applicable sections and the 
information to be included. In this section, BSEE would reorganize and 
breakout the DWOP requirements by topic, as reflected in paragraphs (a) 
through (f). These revisions would improve clarity for applicable 
information requirements.
What general information must my DWOP include? (Sec.  250.237)
    This proposed section identifies the general information that an 
operator would be required to submit in the DWOP, as applicable. The 
content of paragraphs (a) and (b) of this proposed section would be 
moved from current Sec.  250.292(o) and (q). This section would add 
Paragraph (c) to require the submission of a list of any associated 
industry standards not incorporated in the regulations that the 
operator will use for project design or operation.

[[Page 29800]]

What well or completions information must my DWOP include? (Sec.  
250.238)
    The content of this proposed section would be moved from current 
Sec.  250.292 and would include a revision to paragraph (c) to clarify 
that this section requires information in the operator's DWOP about the 
design and fabrication of each wellbore riser system deployed from a 
floating production facility or TLP. This revision would clarify that 
these informational requirements apply to wellbore risers as components 
of the well and resolve confusion regarding the general term ``riser'' 
and its applicability of multiple types of risers (e.g., pipeline 
risers and wellbore risers) used on the OCS.
What structural information must my DWOP include? (Sec.  250.239)
    The content of this proposed section would be moved from current 
Sec.  250.292 and would include a revision to paragraph (b) to clarify 
that the design, fabrication, installation, and monitoring information 
would be required for the tendon or mooring systems, including the 
turret or buoy system, as applicable. This revision would reflect 
current equipment and operations common to DWOP approvals.
What production safety system information must my DWOP include? (Sec.  
250.240)
    This proposed section identifies the production safety system 
information that an operator would be required to submit in the DWOP, 
as applicable, to align with the activities the operator plans to 
address in the associated production safety systems application. The 
content of paragraphs (a), (b), (c), (d), (e)(3) of this proposed 
section would be moved from current Sec.  250.292. The additions to 
this proposed section would require submission of the following 
information:

--(In paragraph (e)(1)) Methods, frequency, and acceptance criteria for 
testing the Underwater Safety Valves (USVs), SCSSVs, and Boarding 
Shutdown Valves (BSDVs);
--(in paragraph (e)(2)) The function and testing of the host facility 
Emergency Shutdown Device (ESD) system and its interface to the subsea 
system; and
--(in paragraph (f)) Information on the design, operation, maintenance, 
personnel competency, and testing of your subsea leak detection system 
to protect your subsea field/infrastructure (e.g., trees, manifolds, 
jumpers). Operators must include procedures for how to operate the 
system, ensure system functionality, identify a leak, and the actions 
to be taken when a leak is identified.

    The content of this section would codify similar concepts from NTL 
2000-N06, Deepwater Operations Plans (DWOP). These proposed revisions 
would also help ensure compliance with the requirements of Subpart H. 
Subsea leak detection systems are critical for all subsea production 
systems to minimize discharges of hydrocarbons into the environment due 
to equipment failure below the waterline.
What subsea systems and pipeline information must my DWOP include? 
(Sec.  250.241)
    This proposed section would identify the subsea systems and 
associated pipeline systems information that must be included in the 
DWOP, as applicable. The content of paragraphs (c)(2)(i), (ii), (iii) 
of this proposed section would be moved from current Sec.  250.292. 
Proposed paragraph (a) would require the operator to identify the 
information common to the subsea system and the associated pipeline 
system, which constitute all or part of a single project development 
covered by the DWOP and/or aligns with activities addressed in an 
associated pipeline application, and would require the submission of 
the following:

--Subsea field schematic depicting the planned subsea development 
equipment and infrastructure, including wells/trees, non-pipe subsea 
equipment, pipeline route(s), pipeline riser systems, umbilical(s), and 
platform footprint;
--Description of the subsea development project detailing the subsea 
and pipeline equipment design criteria and analysis procedures 
(including industry standards, pressure and temperature ratings, 
materials selection), testing methods, and general operational 
procedures;
--Description of the fabrication and assembly/testing location of 
subsea trees, pipelines, and non-pipe subsea equipment (manifold, PLEM, 
PLET, Subsea Umbilical Termination Assembly (SUTA), subsea pumps, 
suction piles, etc.);
--Summary of the subsea tieback development technologies' Integrity 
Management Program, including a plan for inspection and monitoring to 
support assessment of system condition a minimum of once every 10 
years. This should include, but not be limited to, the in-service 
inspections or surveys of hull and topsides structures, tendons, 
moorings, and pipelines and/or wellbore riser systems to assess 
component condition by inspection and analysis after each significant 
environmental event (e.g., hurricane, earthquake, loop and eddy 
currents, or mudslide), impacting the system, or once every 10 years, 
whichever occurs first. The longevity of the activities covered by a 
DWOP has proven to be greater than was originally conceived in many 
cases. Subsea tiebacks have become more commonplace since this rule was 
last revised, and the importance of integrity management for these 
assets has become apparent. This is evident especially based on time-
dependent failure modes like corrosion and fatigue, which can 
significantly impact an operator's ability to maintain safe operations. 
Operators are already required to use recognized engineering practices, 
which are evaluated in a DWOP, to reduce risk in the operation of their 
assets. Other regulations specify that necessary in-service inspections 
be completed. Operators should already have integrity management 
programs in place to address the monitoring, inspection, and condition 
assessment of their assets. This section would codify similar 
inspection plans and maintenance language from NTL 2000-N06; and
--Summary of safety and environmental controls.

    Paragraph (b) would require submission of the following information 
about subsea systems that constitute all or part of a single project 
development covered by the DWOP, as applicable:

--System control type (i.e., direct hydraulic or electro-hydraulic);
--Well tree(s), wellhead, and non-pipe equipment general arrangement 
drawings and schematics, with size and valve type annotations to 
illustrate the tree and other equipment in operation;
--Estimated shut-in tubing pressure for the proposed well(s), including 
the calculations used to arrive at the estimate, specifying TVD, 
reservoir pressure, and the fluid gradient used, or a brief discussion 
of the PVT data used for estimation;
--Wellbore static bottomhole temperature and the estimated flowing 
temperature at the tree, including a description of the method used to 
calculate this estimate;
--Umbilical(s) and umbilical connection(s), including an umbilical 
cross-section schematic;
--Chemical or other injection systems and/or enhanced recovery systems 
to be used;

[[Page 29801]]

--Corrosion monitoring and prevention/inhibition provisions;
--Details of any re-furbished and/or re-certified equipment you plan to 
use; and
--A schedule of development activities, including well completion, 
facility installation, and anticipated date of first oil.

    Paragraph (c) would require an operator to include pipeline 
information in its DWOP, as applicable, to align with the activities to 
be addressed in the associated pipeline application(s):

--Design and fabrication information for each pipeline riser system;
--For projects that will use a pipeline free standing hybrid riser 
(FSHR) on a permanent installation that uses a buoyancy air can 
suspended from the top of the riser, the operator would be required to 
provide the following information in its DWOP as part of the discussion 
required by paragraph (b)(1) and (2) of this section: A detailed 
description and drawings of the FSHR, buoy, and the associated 
connection system; detailed information regarding the system used to 
connect the FSHR to the buoyancy air can, and associated redundancies; 
and descriptions of the monitoring system and monitoring plan for the 
pipeline FSHR and the associated connection system for fatigue, stress, 
and any other abnormal condition (e.g., corrosion), that may negatively 
impact the riser system's integrity; and
--Pipeline and pipeline riser installation methods.

    Submission of this information is consistent with what BSEE 
presently requires in the DWOP (and has historically required). The 
proposed requirements would clarify general language in the existing 
regulation by adding specificity regarding scope.
What new or unusual technology information must my DWOP include? (Sec.  
250.242)
    This proposed section would identify the new or unusual technology 
information that must be included in the DWOP, including the 
information referenced in the applicable Conceptual Plan. Proposed 
paragraph (a) would require the submission of a description of any new 
or unusual technology being used in a development project, including a 
reference to previously approved New or Unusual Technology Conceptual 
Plans or New or Unusual Technology Barrier Conceptual Plans.
    Paragraph (b) would require submission of a description of any new 
or unusual technology not covered under the New or Unusual Technology 
Conceptual Plan or New or Unusual Technology Barrier Conceptual Plan. 
It would also require an operator to include the same applicable 
information as required in Sec. Sec.  250.228 or 250.229.
    This information is consistent with what BSEE historically and 
presently requires to be included in the DWOP. The requirements clarify 
general language in the existing regulation by adding specificity to 
the scope of information required in a DWOP. This would allow for 
previously reviewed technology to be described and referenced, if 
applicable. It would also allow for new or unusual technology proposals 
and approvals at a later stage of project development, provided that 
enough time is allowed to also comply with Sec. Sec.  250.228 and/or 
250.229.
    These revisions would codify current BSEE practices and would 
provide BSEE with sufficient information for proper new or unusual 
technology and DWOP review. These revisions would also provide clarity 
and consistency for operator submittal of the DWOP.
May I combine the Conceptual Plan and the DWOP? (Sec.  250.245)
    The content of this proposed section, which addresses when an 
operator may submit a combined Conceptual Plan and DWOP, would be moved 
from current Sec.  250.294 and would include the following revisions:
    The introductory paragraph would be revised to clarify that, if the 
operator's development project meets the criteria in proposed 
paragraphs (a) and (b) of this section, an operator may submit a 
combined Conceptual Plan/DWOP that complies with all applicable 
requirements for both, on or before the deadline for submitting the 
Conceptual Plan, as described in proposed Sec.  250.226. Existing 
paragraph (a), which allows the operator to submit a combined 
Conceptual Plan/DWOP if the project is located in water depths of less 
than 400 meters (1,312 feet), would be removed. In the past, deepwater 
development projects, including projects in water depths greater than 
400 meters, involved the use of systems and technologies that, at the 
time, were new and complex, and necessitated separate reviews provided 
through the Conceptual Plan and DWOP process. Over time, however, as 
deepwater development projects became more common, the knowledge gained 
and technologies used have matured to such a degree that these projects 
are now largely standardized and routine. Therefore, BSEE no longer 
finds the water depth criteria relevant to the allowance to combine a 
Conceptual Plan and DWOP. The key factor necessary to determine the 
need for a separate Conceptual Plan and DWOP is whether the project 
proposes to use new technology, regardless of water depth.
    Existing paragraph (a) would be replaced with existing paragraph 
(b), which allows a combined plan if the project is similar to projects 
involving subsea tieback development technology for which the operator 
has obtained approval previously. This rulemaking would add a new 
paragraph (b) to allow for the submission of a combined Conceptual 
Plan/DWOP if the project does not involve either new or unusual 
technology or a new platform. As previously stated at the beginning of 
the paragraph, the operator must meet the criteria in paragraph (a) and 
(b) of proposed Sec.  250.245 in order to be able to submit a combined 
Conceptual Plan/DWOP.
    These revisions would provide clarity for operators to streamline 
the process, when appropriate, and would reflect conforming edits for 
new or unusual technology. These revisions would reflect current BSEE 
acceptance of combined submission of the Conceptual Plan and DWOP in 
certain situations.
When must I revise my DWOP? (Sec.  250.246)
    The content of this proposed section would be moved from current 
Sec.  250.295 and revised to clarify when revision to an approved 
Conceptual Plan or DWOP is necessary. Revision is necessary when there 
are changes in the development project that alter the proposed plan or 
procedures, but that do not involve a physical alteration of the 
equipment on the platform or the seabed. As explained below, a 
supplement is required when changes involve a physical alteration of 
the equipment on the platform or the seabed. This section and the 
following section are intended to reduce confusion by helping operators 
determine when a revision or a supplement to the applicable Conceptual 
Plan or DWOP is necessary.
When must I supplement my DWOP? (Sec.  250.247)
    This proposed section would identify when an operator must 
supplement the approved DWOP to reflect additions or changes in the 
development project.
    Proposed paragraph (a) would require the operator to submit a 
supplement to the DWOP to reflect any additions or changes in the 
development project that physically alter the platform, process 
facilities, equipment, or systems approved in the original Conceptual 
Plan or DWOP. If a Supplemental DWOP proposes the addition of any

[[Page 29802]]

wells (e.g., a new subsea field) not approved in the original DWOP, the 
operator may not complete or produce from the new well(s) until BSEE 
approves the Supplemental DWOP.
    Proposed paragraph (b) would require a supplement to the DWOP for 
additions or changes that involve the addition of any new or unusual 
technology to the project that was not previously approved under the 
New or Unusual Technology Conceptual Plan, New or Unusual Technology 
Barrier Conceptual Plan, or DWOP. This proposed paragraph would also 
clarify that the operator may not install any new or unusual technology 
until BSEE approves the Supplemental DWOP.
    This section would be added to clarify when operators must submit 
Supplemental DWOPs. This section and the section above are intended to 
reduce confusion by helping operators determine when a revision or a 
supplement to the DWOP is necessary.
What information must I include in my Supplemental DWOP? (Sec.  
250.248)
    This proposed section would describe the information that must be 
included in the supplement to the DWOP referenced in proposed Sec.  
250.247.
    Paragraph (a) would require the same information for the wells or 
equipment as required in the applicable Conceptual Plan and DWOP 
requirements in this subpart. This addition would ensure consistency 
between the initial and supplemental submissions.
    Paragraph (b) would describe information for each applicable 
Conceptual Plan or DWOP section that is being impacted by the addition 
or change.
    Paragraph (c) would require payment of the new service fee for 
BSEE's review and processing of a supplemental DWOP, as listed in the 
proposed revisions to Sec.  250.125.

Subpart D--Oil and Gas Drilling Operations

Hydrogen Sulfide (Sec.  250.490)
    This proposed rule would revise paragraph (p) of this section, 
which addresses metallurgical properties of equipment used in an 
H<INF>2</INF>S environment. The paragraph would be revised to state 
that if operating in a zone with H<INF>2</INF>S present or when the 
concentration of H<INF>2</INF>S in the produced fluid may exceed 0.05 
pounds per square inch (psi) partial pressure of H<INF>2</INF>S, the 
operator must use equipment that is constructed of materials with 
metallurgical properties that resist or prevent sulfide stress cracking 
(also known as hydrogen embrittlement, stress corrosion cracking, or 
H<INF>2</INF>S embrittlement), chloride-stress cracking, hydrogen-
induced cracking, and other failure modes.
    This regulation would be revised to be consistent with the 
requirements of NACE Standard MR0175-2003, ``Standard Material 
Requirements, Metals for Sulfide Stress Cracking and Stress Corrosion 
Cracking Resistance in Sour Oilfield Environments,'' Revised January 
17, 2003; incorporated by reference at existing Sec. Sec.  250.490 and 
250.901 and NTL 2009-G31. Section 250.490 paragraph (p) currently 
requires that the tubing and casing be designed for NACE requirements, 
but incorrectly refers only to ``H<INF>2</INF>S present'' as the 
concentration necessary to trigger this requirement. ``H<INF>2</INF>S 
present'' is defined in existing Sec.  250.490 paragraph (b) as ``could 
potentially result in atmospheric concentration of 20 ppm or more of 
H<INF>2</INF>S.'' This proposed rule would clarify that in either 
``H<INF>2</INF>S present'' conditions or when H<INF>2</INF>S 
concentrations in the produced fluid exceed 0.05 psi partial pressure 
of H<INF>2</INF>S, the operator must use equipment that is constructed 
of materials with certain metallurgical properties, in accordance with 
NACE Standard MR0175-2003.

Subpart E--Oil and Gas Well-Completion Operations

Tubing and Wellhead Equipment (Sec.  250.518)
    This proposed rule would revise paragraph (a) of Sec.  250.518 to 
include the following:

--The tubing string must be evaluated for burst, collapse, and axial 
loads with appropriate safety and design factors for the pressure and 
temperature environments of the completion, production, shut-in, and 
injection load cases.
--The tubing string materials must be appropriate for the environment. 
The operator must follow NACE Standard MR0175-2003 (as incorporated by 
reference in Sec.  250.198) when H<INF>2</INF>S concentration may equal 
or exceed 0.05 psi partial pressure.
--The tubing string threaded connectors must be appropriate for the 
loads identified in proposed paragraph (a)(1).

    These revisions would reflect essential well design elements 
addressed in industry standards. Current regulations discuss well 
design specific to casing, but little is provided for tubing design, 
which is equally critical for well integrity. Regulations currently 
establish H<INF>2</INF>S concentrations that constitute a specific 
threat to personnel and establish concentrations that trigger enactment 
of H<INF>2</INF>S protocols. Additional requirements added to this 
section would address H<INF>2</INF>S impacts to equipment integrity, as 
these components must function as barriers to personnel and the 
environment. Section 250.490 paragraph (p) currently requires that the 
tubing and casing be designed for NACE requirements, but incorrectly 
refers only to ``H<INF>2</INF>S present'' as the concentration 
necessary to trigger this requirement. ``H<INF>2</INF>S present'' is 
defined in existing Sec.  250.490 paragraph (b) as ``could potentially 
result in atmospheric concentration of 20 ppm or more of 
H<INF>2</INF>S.'' This proposed rule would clarify that, in either 
``H<INF>2</INF>S present'' conditions or when H<INF>2</INF>S 
concentrations in the produced fluid exceed 0.05 psi partial pressure 
of H<INF>2</INF>S, the operator must use equipment that is constructed 
of materials with certain metallurgical properties, in accordance with 
NACE Standard MR0175-2003.
    The proposed rule would also revise paragraph (c) of this section 
to include the design and testing of the wellhead, tree, and related 
equipment in accordance with ANSI/API Spec. 6A (as incorporated by 
reference in Sec.  250.198) or ANSI/API Spec. 17D (as incorporated by 
reference in Sec.  250.198), as applicable. This rulemaking would also 
add paragraphs (c)(1), (2), and (3) to clarify that:

--Newly completed dry trees (e.g., fixed, hybrid, or mudline 
suspension) for production or injection wells must be equipped with a 
minimum of one master valve and one surface safety valve (SSV), 
installed above the master valve, in the vertical run of the tree.
--Newly completed subsea production or injection wells must be equipped 
with a minimum of one USV installed in the horizontal or vertical run 
of the tree (e.g., vertical, or horizontal subsea trees).
--Newly completed wells with a mudline suspension conversion to a 
subsea tree must have a minimum of two casing strings tied back and 
sealed below the tubing head. At a minimum, the production casing and 
the next outer casing must be tied back to the wellhead, to ensure 
annular isolation.

    Current regulations do not address modern tree design and 
application. These proposed revisions would better define safety valve 
requirements based upon modern configuration and tree design. ANSI/API 
Spec. 6A is referenced extensively in Subpart H for Safety and 
Pollution Prevention Equipment (SPPE) equipment; by including ANSI/API 
Spec. 6A in this section, BSEE would reinforce the

[[Page 29803]]

importance of its use at the tree installation stage. ANSI/API Spec. 
17D is currently applied in regulations to Blowout Preventer (BOP) 
Systems and Components. However, its relevance extends heavily to tree 
design. These proposed changes would reduce requests to use alternate 
procedures or equipment and reflect universal industry accepted 
practices for tree design and operation.
    Proposed paragraph (c)(3) would also be added because ANSI/API 
Spec. 17D does not address mudline suspension conversion to a subsea 
tree with more than one casing tieback. These revisions would also 
codify similar language from NTL 2006 G-20, which would establish a 
requirement for a minimum of two casing strings tied back and sealed 
below the tubing head for a mudline suspension conversion to a subsea 
tree.
    Paragraph (d) of this section would also be revised to clarify that 
both the subsurface safety equipment and surface safety equipment must 
comply with applicable requirements of Subpart H.

Subpart F--Oil and Gas Well-Workover Operations

Tubing and Wellhead Equipment (Sec.  250.619)
    This proposed rule would revise paragraph (a) of Sec.  250.619 to 
include the following:

--The tubing string must be evaluated for burst, collapse, and axial 
loads with appropriate safety and design factors for the pressure and 
temperature environments of the completion, production, shut-in, and 
injection load cases.
--The tubing string materials must be appropriate for the environment. 
The operator must follow NACE Standard MR0175-2003 (as incorporated by 
reference in Sec.  250.198) when H<INF>2</INF>S concentration may equal 
or exceed 0.05 psi partial pressure.
--The tubing string threaded connectors must be appropriate for the 
loads identified in proposed paragraph (a)(1).

    These revisions would reflect essential well design elements 
addressed in industry standards. Current regulations discuss well 
design specific to casing, but little is provided for tubing design, 
which is equally critical for well integrity. Regulations currently 
establish H<INF>2</INF>S concentrations that constitute a threat to 
personnel and establish concentrations that trigger enactment of 
H<INF>2</INF>S protocols. Additional requirements added to this section 
address H<INF>2</INF>S impacts to equipment integrity, as these 
components must function as barriers to personnel and the environment. 
Section 250.490 paragraph (p) currently requires that the tubing and 
casing be designed for NACE requirements, but incorrectly refers only 
to ``H<INF>2</INF>S present'' as the concentration necessary to trigger 
this requirement. ``H<INF>2</INF>S present'' is defined in existing 
Sec.  250.490 paragraph (b) as ``could potentially result in 
atmospheric concentration of 20 ppm or more of H<INF>2</INF>S.'' This 
proposed rule would clarify that in either ``H<INF>2</INF>S present'' 
conditions or when H<INF>2</INF>S concentrations in the produced fluid 
exceed 0.05 psi partial pressure of H<INF>2</INF>S, the operator must 
use equipment that is constructed of materials with certain 
metallurgical properties, in accordance with NACE Standard MR0175-2003.
    This proposed rule would also revise paragraph (c) to include the 
design and testing of the wellhead, tree, and related equipment in 
accordance with ANSI/API Spec. 6A (as incorporated by reference in 
Sec.  250.198) or ANSI/API Spec. 17D (as incorporated by reference in 
Sec.  250.198), as applicable. This section would also add paragraphs 
(c)(1), (2), and (3) to clarify that:

--Newly completed dry trees (e.g., fixed, hybrid, or mudline 
suspension) for production or injection wells must be equipped with a 
minimum of one master valve and one SSV, installed above the master 
valve, in the vertical run of the tree.
--Newly completed subsea production or injection wells must be equipped 
with a minimum of one USV installed in the horizontal or vertical run 
of the tree (for vertical or horizontal subsea trees).
--Newly completed wells with a mudline suspension conversion to a 
subsea tree must have a minimum of two casing strings tied back and 
sealed below the tubing head. At a minimum, the production casing and 
the next outer casing must be tied back to the wellhead, to ensure 
annular isolation.

    Paragraph (d) would also be revised to clarify that surface safety 
equipment must be installed, maintained, and tested in accordance with 
applicable sections of Subpart H, in addition to the subsurface safety 
equipment.
    Current regulations do not address modern tree design and 
application. These revisions would better define safety valve 
requirements based upon configuration and tree design. ANSI/API Spec. 
6A is referenced extensively in Subpart H for SPPE equipment. By 
including ANSI/API Spec. 6A into this section, BSEE would reinforce the 
importance of its use at the tree installation stage. ANSI/API Spec. 
17D is currently applied in regulations related to BOP systems and 
components; however, its relevance extends heavily to tree design. 
These changes would reduce requests to use alternate procedures or 
equipment and reflect industry accepted practices for tree design and 
operation.

Subpart G--Well Operations and Equipment

What information must I submit for BOP systems and system components? 
(Sec.  250.731)
    This proposed rule would revise existing paragraph (c)(4) of this 
section to update a cross-reference to the definition of HPHT in 
accordance with proposed Sec.  250.105. This revision is 
administrative.
What are the independent third party requirements for BOP systems and 
system components? (Sec.  250.732)
    This rulemaking would revise existing paragraph (c) of Sec.  
250.732 to reflect the addition of the new or unusual technology and 
new or unusual technology barrier requirements in Subpart B. This 
rulemaking would delete the third party requirements under existing 
paragraph (c) because that information would be covered under the new 
DWOP Process requirements. These revisions would connect the HPHT 
permitting (e.g., APD) requirements and the DWOP Process requirements 
and would improve BSEE's review and decision process. These revisions 
help ensure that the specified equipment is fit for service in the 
environmental conditions reasonably expected at the operation's site.
    The proposed revisions to this section would remove duplicative 
requirements now covered under the DWOP new or unusual technology 
barrier requirements and would provide greater detail considering that 
the Conceptual Plan review occurs before use of HPHT equipment and 
would occur before application review. This rulemaking would 
consolidate the language and refer to the applicable new or unusual 
technology barrier requirements and would specify that BSEE would 
require Conceptual Plan and appropriate permit approval before 
equipment installation. This addition would provide clarification to 
operators unfamiliar with the applicable DWOP requirements.

[[Page 29804]]

Subpart H--Oil and Gas Production Safety Systems

Additional Requirements for Subsurface Safety Valves (SSSVs) and 
Related Equipment Installed in High Pressure High Temperature (HPHT) 
Environments (Sec.  250.804)
    This rulemaking proposes to remove and reserve this section. The 
existing requirements from this section would be addressed under 
proposed Sec. Sec.  250.105 and 250.204.

III. Additional Comments Solicited

    In addition to public comments on the revisions proposed under this 
rulemaking, BSEE is soliciting comments on the following issues:

A. Additional Industry Standards To Consider for Incorporation

    BSEE is seeking information regarding any existing industry 
standards that address qualification of new technology barrier 
equipment that should be considered for incorporation into the 
regulations. Please provide any rationale for BSEE to consider 
incorporation.

B. Fluid as a Conditional Temporary Barrier

    BSEE is considering adding the following into the final rule:
    ``BSEE may consider wellbore fluids as a temporary barrier if you 
meet the following criteria:
    (1) BOP systems and related equipment are installed in accordance 
with the approved operation on the well and can be actuated on demand;
    (2) The density of the wellbore fluid is known and creates a 
pressure greater than the source pressure;
    (3) The elevation of the wellbore fluid level is known;
    (4) The fluid pit volumes are continuously monitored for increases 
and the well for flow; and
    (5) The well must be continuously monitored during well operations 
and must not be left unattended at any time unless the well is shut in 
and secured.
    Once well bore fluids are isolated below a mechanical barrier, they 
are no longer considered a barrier.''
    BSEE is soliciting comments on the appropriateness of promulgating 
these provisions in the final rule. Additionally, BSEE is soliciting 
comments that identify any other conditions that should be considered 
when determining whether to use fluid as a temporary barrier. Please 
provide supporting reasons and data for your comments.

C. Economic Data

    The compliance costs and savings in the initial regulatory impact 
analysis (IRIA) are BSEE's best estimates based on experience with the 
current DWOP process, stakeholder interactions, and communication with 
industry. BSEE is requesting comments related to the appropriateness 
and accuracy of the compliance costs and benefits identified in the 
IRIA. Please provide supporting reasons and data for your comments.

IV. Derivation Table

    The following table is intended to provide information about the 
derivation of proposed requirements in Subparts B. This table provides 
guidance on the following:

--The destination of various existing requirements.
--The organization and content of the proposed revisions.

    This table does not provide definitive or exhaustive guidance and 
should be used in conjunction with the section-by-section discussion 
and regulatory text of this proposed rule.
    The proposed rule would make changes as outlined in the following 
table:

------------------------------------------------------------------------
                                  Proposed rule
  Current regulations section        section         Nature of change
------------------------------------------------------------------------
Subpart A:
    250.804....................         250.105  Would move the
                                                  definition of HPHT to
                                                  make it applicable to
                                                  all operations, not
                                                  just production
Subpart B:
    250.200....................         250.200  Would add definitions
                                                  for barrier
                                                  categorization,
                                                  primary and secondary
                                                  barriers, and new or
                                                  unusual technology.
    250.201....................         250.201  Would add information
                                                  about the three new
                                                  conceptual plans and
                                                  when submittal of each
                                                  plan is required.
    250.204....................         250.202  Moved without revision.
    250.205....................         250.203  Moved without revision.
    New........................         250.204  Would clarify what
                                                  information must be
                                                  submitted to BSEE if
                                                  an operator plans to
                                                  install HPHT barrier
                                                  equipment.
    New........................         250.206  Would codify some of
                                                  the barrier concepts
                                                  from existing BSEE
                                                  guidance.
    New........................         250.207  Would require the
                                                  installation and
                                                  maintenance of a
                                                  primary and secondary
                                                  barrier system to
                                                  contain the source.
    550.280....................         250.208  Would include similar
                                                  content with minor
                                                  formatting changes to
                                                  reflect BSEE
                                                  applicability.
    550.281(a) and (b).........         250.209  Would include similar
                                                  content with minor
                                                  formatting changes to
                                                  reflect BSEE
                                                  applicability.
    250.282....................         250.210  Would include similar
                                                  content with minor
                                                  formatting changes to
                                                  reflect BSEE
                                                  applicability.
    New........................         250.211  Would clarify the new
                                                  or unusual technology
                                                  failure reporting
                                                  requirements.
    250.286....................         250.220  Would clarify the
                                                  addition of new or
                                                  unusual technology,
                                                  and the operations
                                                  that could be covered
                                                  under the DWOP
                                                  Process.
    250.287....................         250.221  Would include similar
                                                  content and clarify
                                                  when the DWOP Process
                                                  is applicable.
    New........................         250.225  This rulemaking would
                                                  add this section to
                                                  identify the 3 new
                                                  proposed conceptual
                                                  plans.
    250.288 and 250.290........         250.226  Would include similar
                                                  content and clarify
                                                  when to submit the
                                                  applicable conceptual
                                                  plans.
    250.289....................         250.227  Would include content
                                                  from existing
                                                  paragraphs (a), (b),
                                                  (c), (i)(1), and
                                                  specify the content of
                                                  the Project Conceptual
                                                  Plan.
    New........................         250.228  Would specify the
                                                  content of the New or
                                                  Unusual Technology
                                                  Conceptual Plan.
    New........................         250.229  Would specify the
                                                  content of the New or
                                                  Unusual Technology
                                                  Barrier Conceptual
                                                  Plan.
    New........................         250.230  Would specify the I3P
                                                  nomination
                                                  requirements.

[[Page 29805]]

 
    New........................         250.231  Would specify the I3P
                                                  requirements for
                                                  applicable conceptual
                                                  plan review.
    New........................         250.232  Would clarify the I3P
                                                  report expectations.
    250.291....................         250.235  Would include similar
                                                  content and clarify
                                                  DWOP submittals to
                                                  reflect new or unusual
                                                  technology additions.
    New........................         250.236  Would add a table
                                                  listing the applicable
                                                  sections with
                                                  corresponding
                                                  information for the
                                                  DWOP content.
    250.292....................         250.237  Would include content
                                                  from existing
                                                  paragraphs (a), (b)
                                                  and clarify the
                                                  general DWOP
                                                  requirements.
    250.292....................         250.238  Would include content
                                                  from existing
                                                  paragraphs (a), (b),
                                                  (c) and clarify the
                                                  completions
                                                  information DWOP
                                                  requirements.
    250.292....................         250.239  Would include content
                                                  from existing
                                                  paragraphs (a), (b),
                                                  (c) and clarify the
                                                  structural information
                                                  DWOP requirements.
    250.292....................         250.240  Would include content
                                                  from existing
                                                  paragraphs (a), (b),
                                                  (c), (d), (e)(3) and
                                                  clarify the production
                                                  safety system
                                                  information DWOP
                                                  requirements.
    250.292....................         250.241  Would include content
                                                  from existing
                                                  paragraphs (c)(2)(i),
                                                  (ii), (iii) and
                                                  clarify the subsea
                                                  systems and pipeline
                                                  information DWOP
                                                  requirements.
    New........................         250.242  Would clarify the new
                                                  or unusual technology
                                                  information DWOP
                                                  requirements.
    250.294....................         250.245  Would include similar
                                                  content and clarify
                                                  when an operator can
                                                  combine the conceptual
                                                  plan and the DWOP.
    250.295....................         250.246  Would include similar
                                                  content and clarify
                                                  when a revised DWOP is
                                                  necessary.
    New........................         250.247  Would clarify when a
                                                  supplemental DWOP is
                                                  necessary.
    New........................         250.248  Would clarify the
                                                  content of a
                                                  supplemental DWOP.
------------------------------------------------------------------------

V. Procedural Matters

Regulatory Planning and Review (Executive Orders (E.O.) 12866 and 
13563)

    E.O. 12866, Regulatory Planning and Review provides that OMB's 
Office of Information and Regulatory Affairs (OIRA) will review all 
significant regulatory actions. A significant regulatory action is one 
that is likely to result in a rule that:
    <bullet> Has an annual effect on the economy of $100 million or 
more, or adversely affects in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or state, local, or tribal governments or 
communities;
    <bullet> Creates serious inconsistency or otherwise interferes with 
an action taken or planned by another agency;
    <bullet> Materially alters the budgetary impacts of entitlement 
grants, user fees, loan programs, or the rights and obligations of 
recipients thereof; or
    <bullet> Raises novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
E.O. 12866.
    BSEE has concluded that this proposed rule is not likely to be a 
significant action under E.O. 12866. In particular, it is estimated 
that this proposed rule would not have an annual economic impact of 
$100 million or more and would not have a material adverse effects or 
raise novel issues.
    In support of that conclusion, BSEE prepared an IRIA to assess the 
anticipated costs and potential benefits of the proposed rulemaking. 
The IRIA estimates that the increase in annualized costs, compared with 
the baseline in the absence of the proposed rule, is $2.9 million per 
year. Over the period 2021-2030, those costs are estimated to have a 
total present value of $29.0 million undiscounted, $24.7 million 
discounted at 3 percent, and $20.4 million discounted at 7 percent. The 
IRIA for this proposed rulemaking can be found in the docket at https://www.regulations.gov/ (Docket ID: BSEE-2021-0003).
    As required by the Independent Offices Appropriation Act (IOAA), as 
amended (31 U.S.C. 9701), the proposed rule would establish new fees 
for BSEE's review and processing of several types of operator 
submissions and reports. This rulemaking would add service fees for 
processing a Project Conceptual Plan, New or Unusual Technology 
Conceptual Plan, New or Unusual Technology Barrier Conceptual Plan, 
revised DWOP, Combined Conceptual Plan/DWOP, and Supplemental DWOP. 
This rulemaking would also revise the cost recovery fee amount for DWOP 
review. The proposed rule would increase, and not adversely affect, the 
government's receipt of user fees. BSEE's economic analysis projects 
that, altogether, the fees anticipated to be collected under the 
proposal over a 10-year period (2021-2030) would exceed the baseline 
fees collected by approximately $7.8 million (undiscounted).
    The rulemaking would improve operational and environmental safety 
and human health for deepwater development projects and other projects 
or systems that use new or unusual technology, not only by providing 
clarity and regulatory certainty regarding the information submission 
process, but also by ensuring that additional regulatory requirements 
and that New or Unusual Technology Barrier Conceptual Plans are 
reviewed by I3Ps, as well as providing BSEE discretion to require I3P 
review of New or Unusual Technology Conceptual Plans. In a detailed 
analysis of the costs and benefits of the proposed regulation, BSEE has 
estimated the increased costs for industry and government relating to 
the enhanced plan preparation and submission requirements. Anticipated 
costs to industry and government were estimated assuming current rules 
and practices and contrasted with the proposed rule. Combined costs 
over 2021-2030 totaled $38.1 million with current rules and practices 
versus $67.1 million with the proposed rule, implying annualized cost 
increases of $2.9 million discounted at 3% or 7%. BSEE has not 
quantified the benefits of the new submission process, the new 
requirements for new or unusual technology projects, including HPHT 
projects, and I3P reviews. BSEE believes that updating references to 
industry standards and by giving greater clarity to requirements for 
submissions for new or unusual technology and HPHT projects and plans, 
the proposed rule promotes the objectives of E.O. 13563, including a 
reasoned determination that its benefits justify its costs (recognizing 
that some benefits and costs are difficult to quantify).
    Executive Order 13563, Improving Regulation and Regulatory Review, 
reaffirms the principles of E.O. 12866 while calling for improvements 
in the

[[Page 29806]]

Nation's regulatory system to promote predictability, to reduce 
uncertainty, and to use the best, most innovative, and least burdensome 
tools for achieving regulatory ends. E.O. 13563 directs agencies to 
consider regulatory approaches that reduce burdens and maintain 
flexibility and freedom of choice for the public where these approaches 
are relevant, feasible, and consistent with regulatory objectives. E.O. 
13563 emphasizes further that regulations must be based on the best 
available science and that the rulemaking process must allow for public 
participation and an open exchange of ideas. We have developed this 
proposed rule in a manner consistent with these requirements.

Regulatory Flexibility Act and Small Business Regulatory Enforcement 
Fairness Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires 
agencies to analyze the economic impact of regulations when there is 
likely to be a significant economic impact on a substantial number of 
small entities, and allows an agency to certify a rule, in lieu of 
preparing an analysis, if the regulation will not have such an economic 
impact. Further, the Small Business Regulatory Enforcement Fairness Act 
of 1996 (SBREFA), Public Law 104-121, (March 29, 1996), as amended, 
requires agencies to produce compliance guidance for small entities if 
the rule has a significant economic impact on a substantial number of 
small entities.
    BSEE considers that a rule will have an impact on a ``substantial 
number of small entities'' when the total number of small entities 
impacted by the rule is equal to or exceeds 10 percent of the relevant 
universe of small entities in a given industry. The relevant small-size 
criteria for affected operators and firms likely to help prepare 
reports are presented in Table 1 below.

            Table 1--Small-Entity Criteria for Affected Firms
------------------------------------------------------------------------
              Industry sector                   Small-entity criteria
------------------------------------------------------------------------
211120 Crude petroleum extraction.........  1250 employees.
211130 Natural gas extraction.............  1250 employees.
213111 Drilling oil and gas wells.........  1000 employees.
541330 Engineering services (for the I3P    $16.5 million/year revenues.
 or other reports).
------------------------------------------------------------------------

    Using these criteria, BSEE estimates that about 23 companies would 
be affected by the proposed rule over the next 10 years (2021-2030), of 
which approximately 12 (52 percent) of the potentially impacted 
businesses are considered small; the rest are considered large 
businesses. All of the operating businesses meeting the U.S. Small 
Business Administration classification are potentially impacted; 
therefore, BSEE expects that the rule will affect a substantial number 
of small entities.
    As noted in the E.O. 12866 discussion, the amendments will result 
in increased costs to firms from HPHT and new or unusual technology 
reporting requirements and increased service fees, including mandatory 
I3P nominations and reports. The increase in cost borne by industry 
includes cost of submissions, preparation, and cost recovery fees. BSEE 
has evaluated quantifiable costs and benefits and has estimated that 
there are quantified costs to industry from the proposed provisions. 
BSEE has estimated the annualized industry costs by business size in 
Table 2. The percent of the total industry cost impacts to small 
operators was estimated based on their percentage of overall revenues. 
These revenues were estimated by applying Census Statistics of U.S. 
Businesses revenue estimates by employment ranges to each impacted 
operator. Based on historical information, BSEE estimates that small 
companies will bear 8 percent of the industry costs from this rule and 
large companies will bear the remaining 92 percent.

    Table 2--Total 10-Year Industry Costs Associated With Rulemaking
                               [2021-2030]
                       [Undiscounted annualized $]
------------------------------------------------------------------------
                                                               Industry
                 Company size                    Percent of   rulemaking
                                                  revenues    costs ($)
------------------------------------------------------------------------
Small Companies...............................            8      169,977
Large Companies...............................           92    1,954,737
                                               -------------------------
    Total.....................................          100    2,124,715
------------------------------------------------------------------------

    The average industry cost and revenue per firm were derived from 
data presented in Table 2 and the numbers of firms classified as small 
or large. This is presented in Table 3, which illustrates that on a 
per-firm basis the new reporting costs that would be imposed on small 
firms by the new requirements, at $14,165 per year, would represent 
approximately 0.005 percent of revenue. That is deemed to be not a 
significant impact. BSEE therefore projects that the proposed rule is 
not likely to have a significant economic impact on a substantial 
number of small entities. Although it is not likely required because of 
this projection, BSEE has conducted an initial regulatory flexibility 
analysis (IRFA) which provides information on the impact of the 
proposed rule on small entities; it is contained in the IRIA which can 
be found in the docket at https://www.regulations.gov/ (Docket ID: 
BSEE-2021-0003).

                           Table 3--Average Annual Industry Cost and Revenue per Firm
                                           [Undiscounted annualized $]
----------------------------------------------------------------------------------------------------------------
                                                              Average
                                                             annualized       Average annual    Cost as percent
            Company size                    Count        industry cost per   revenue per firm      of revenue
                                                                firm
----------------------------------------------------------------------------------------------------------------
Small Companies.....................                 12            $14,165       $283,524,338              0.005
Large Companies.....................                 11            177,703      3,555,005,441              0.005
----------------------------------------------------------------------------------------------------------------

    The proposed rule is not a major rule under the Small Business 
Regulatory Enforcement Fairness Act. To be a major rule for that 
purpose, it must have an annual effect on the economy of $100 million 
or more, cause a major increase in costs or prices, or 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 increase of cost noted earlier, $2.9 
million per year, would not have a significant adverse effect in terms 
of this Act.

[[Page 29807]]

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. The 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 Unfunded 
Mandates Reform Act (2 U.S.C. 1531 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 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 proposed rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (1) 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
    (2) 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)

    BSEE is committed to regular and meaningful consultation and 
collaboration with tribes on policy decisions that have tribal 
implications. Under the criteria in E.O. 13175 and DOI's Policy on 
Consultation with Indian Tribes (Secretarial Order 3317, Amendment 2, 
dated December 31, 2013), we have evaluated this proposed rule and 
determined that it has no substantial direct effects on federally 
recognized Indian tribes.

National Technology Transfer and Advancement Act (NTTAA)

    BSEE complies with the National Technology Transfer and Advancement 
Act (NTTAA) (15 U.S.C. 3701 et seq.) requirement that an agency ``use 
standards developed or adopted by voluntary consensus standards bodies 
rather than government-unique standards, except where inconsistent with 
applicable law or otherwise impractical.'' (OMB Circular A-119 at p. 
13). BSEE also complies with the Office of the Federal Register (OFR) 
regulations governing incorporation by reference. (See, 1 CFR part 51.) 
Those regulations also specify the process for updating an incorporated 
standard at Sec.  51.11(a), and BSEE complies with those requirements, 
including seeking approval by OFR for a change to a standard 
incorporated by reference in a final rule.

Paperwork Reduction Act (PRA) of 1995

    This proposed rule contains existing and new information collection 
(IC) requirements for regulations at 30 CFR part 250, subpart B and 
submission to the OMB for review under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501 et seq.) is required. Therefore, BSEE will submit 
an IC request to OMB for review and approval and will request a new OMB 
control number. Once the 1014-AA49 final rule is effective, we will 
transfer the hour burden and non-hour costs burden from 1014-NEW to 
1014-0024 (44,458 hours, $68,381 non-hour cost burden, expiration 
October 31, 2021) 30 CFR part 250, subpart B, Plans and Information, 
then discontinue the new number associated with this rulemaking. We may 
not conduct or sponsor, and you are not required to respond to, a 
collection of information, unless it displays a currently valid OMB 
control number.
    The proposed regulations would establish new and/or revise current 
requirements in Subpart B, Plans and Information, by revising 
regulations regarding the Deepwater Operations Plan (DWOP) Process and 
information submittal and approval process, which includes Conceptual 
Plans and DWOPs; adding requirements for HPHT barrier equipment and 
systems and new or unusual technology; and requiring, or providing BSEE 
with the option to require, independent third party reviews of 
Conceptual Plans and DWOPs.
    The following provides a breakdown of the paperwork hour burdens 
and non-hour cost burdens for this proposed rule. While some sections 
are being moved from existing Subpart B requirements, it is noted that 
the burden in proposed Sec.  250.210 (current Sec.  250.282) is covered 
under BOEM's 1010-0151. Accordingly, a new burden for BSEE is being 
added.
    As discussed in the Section-by-Section analysis above, and in the 
supporting statement available at RegInfo.gov, this rule proposes to 
add/revise:
    [New requirements due to the proposed rule are shown in bold]
    Sec.  250.210--This section would be revised and moved from 
existing Sec.  250.282. It would include minor revisions to clarify 
that the Regional Supervisor may direct operators to conduct monitoring 
programs in association with their approved EP, DPP, DWOP, or DOCD (+ 
12 burden hours).
    Sec.  250.211--This section is new and would clarify the new or 
unusual technology failure reporting requirements and would require 
notification to BSEE within 30 days of the failure and provision of a 
written report identifying the root causes of the failure (+ 400 burden 
hours).
    Sec.  250.221(b)--This section would be revised and moved from 
existing Sec.  250.287. It would clarify that the DWOP Process is 
applicable to any project that will include the use of new or unusual 
technology (+ 6 burden hours).
    Sec.  250.226--This section would be revised and moved from 
existing Sec. Sec.  250.288 and 250.290. It would add two new 
Conceptual Plans: New or Unusual Technology Conceptual Plan and New or 
Unusual Technology Barrier Conceptual Plan. There are also three new 
Cost Recovery Fees (250.125--Service Fees) associated with each 
conceptual plan (+ 39 burden hours and $1,276,600 non-hour costs 
burden).
    Sec.  250.227--This section would be revised and moved from 
existing Sec.  250.289. It would list additional information to be 
submitted with a Project Conceptual Plan and would add new Independent 
Third Party (I3P) costs for various reviews, certifications, 
verifications, etc. (+ 320 burden hours and $37,776 non-hour costs 
burden).
    Sec.  250.228--This section is new and would list the various 
submissions required with a New or Unusual Technology Conceptual Plan 
and would add new I3P costs for various reviews, certifications, 
verifications, etc. (+ 3,600 burden hours and $676,130 non-hour costs 
burden).
    Sec.  250.229--This section is new and lists the various 
submissions required with a New or Unusual Technology Barrier 
Conceptual Plan and would add new I3P costs for various reviews, 
certifications, verifications, etc. (+ 9,360 burden hours and 
$2,955,719 non-hour costs burden).
    Sec.  250.230--This section is new and would outline the 
requirements for the

[[Page 29808]]

operator to nominate an I3P to be used in conjunction with applicable 
conceptual plans, including that the I3P must be a technical 
classification society, a licensed professional engineering firm, or a 
registered professional engineer capable of providing the required 
certifications and verifications (+ 9 burden hours).
    Sec.  250.231(a)--This section is new and would add the required 
information that the I3P is to review (+ 16,660 burden hours).
    Sec. Sec.  250.231(b); 250.232--This section is new and would 
require the I3P to submit a report documenting the review of each item 
and identify all OEM and operator documents used during the reviews (+ 
60 burden hours).
    Sec. Sec.  250.231(c), (d); 250.232--This section is new and would 
require the I3P to submit a final report that summarizes each review 
requirement under (a) of this section and would also require the 
summary report to include the equipment and/or system's technical 
specifications, including a certification statement that the equipment 
and/or system is fit for purpose for the technical specification by the 
I3P, and verification that the equipment's technical specifications 
meet or exceed the project's functional requirements including a 
certification statement that the equipment and/or system is fit for 
purpose (+ 9 burden hours).
    Sec. Sec.  250.235; 250.236; 250.237; 250.238; 250.239; 250.240; 
250.241; 250.242; 250.243; 250.204; and 732(c)--These sections would be 
revised and moved from existing Sec. Sec.  250.291 and 250.292. These 
would identify when and how to submit a DWOP; and what general 
information, well or completions information, structural information, 
Production Safety System information, subsea systems, and pipeline 
information to submit with DWOPs (+ 1,070 burden hours and $194,655 
non-hour costs burden).
    Sec.  250.245--This section would be revised and moved from 
existing Sec.  250.294. It would be revised to clarify that operators 
may submit a combined Conceptual Plan/DWOP, with all applicable 
requirements for both, on or before the deadline for submitting the 
Conceptual Plan (+ 428 burden hours and $17,918 non-hour costs burden).
    Sec.  250.246--This section would be revised and moved from 
existing Sec.  250.295. It would be revised to clarify when a revision 
to a Conceptual Plan or DWOP is necessary (+ 80 burden hours and $1,792 
non-hour costs burden).
    Sec. Sec.  250.247; 250.248--This section is new and would identify 
when an operator must supplement the DWOP to reflect additions or 
changes in the development project and would add the required 
information that must be included in the supplement to the DWOP. It 
would also require a supplement to the DWOP when a project change 
involves the addition of any new or unusual technology that was not 
previously covered under the New or Unusual Technology Conceptual Plan, 
New or Unusual Technology Barrier Conceptual Plan, or DWOP (+ 3,990 
burden hours and $736,200 non-hour costs burden).
    Title of Collection: 30 CFR part 250, subpart B, Plans and 
Information.
    OMB Control Number: 1014-NEW.
    Form Number: None.
    Type of Review: New.
    Respondents/Affected Public: Potential respondents comprise Federal 
OCS oil, gas, and sulfur lessees/operators and holders of pipeline 
rights-of-way.
    Total Estimated Number of Annual Respondents: Currently there are 
approximately 60 oil and gas drilling and production operators in the 
OCS. Not all the potential respondents would submit information at any 
given time, and some may submit multiple times.
    Total Estimated Number of Annual Responses: 304.
    Estimated Completion Time per Response: Varies from 15 minutes to 
980 hours depending on activity.
    Total Estimated Number of Annual Burden Hours: 36,043.
    Respondent's Obligation: Responses are mandatory.
    Frequency of Collection: Generally, on occasion and as required in 
the regulations.
    Total Estimated Annual Nonhour Burden Cost: $5,944,006.
    This rule is also proposing edits and citation updates to 
Sec. Sec.  250.731(c) and 250.732(c). No burden changes are being 
proposed.
    In addition, the PRA requires agencies to estimate the total annual 
reporting and recordkeeping non-hour cost burden resulting from the 
collection of information, and we solicit your comments on this item. 
For reporting and recordkeeping only, your response should split the 
cost estimate into two components: (1) Total capital and startup cost 
component and (2) annual operation, maintenance, and purchase of 
service component. Your estimates should consider the cost 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; (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.
    As part of our continuing effort to reduce paperwork and respondent 
burdens, we invite the public and other Federal agencies to comment on 
any aspect of this information collection, including:
    (1) Whether the collection of information is necessary, including 
whether the information will have practical utility;
    (2) The accuracy of our estimate of the burden for this collection 
of information;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the collection of information on 
respondents.
    Send your comments and suggestions on this information collection 
by the date indicated in the DATES section to the Desk Officer for the 
Department of the Interior at OMB-OIRA at (202) 395-5806 (fax) or via 
the RegInfo.gov portal (online). You may view the information 
collection request(s) at https://www.reginfo.gov/public/do/PRAMain. 
Please provide a copy of your comments to the BSEE Information 
Collection Clearance Officer (see the ADDRESSES section). You may 
contact Kye Mason, BSEE Information Collection Clearance Officer at 
(703) 787-1607 with any questions. Please reference Proposed Rule 1014-
AA49, Oil and Gas and Sulfur Operations in the Outer Continental 
Shelf--30 CFR 250, Subpart B, Plans and Information (OMB Control No. 
1014-NEW), in your comments.

National Environmental Policy Act of 1969 (NEPA)

    BSEE is proposing to cover this action under a National 
Environmental Policy Act of 1969 (NEPA) categorical exclusion (see 43 
CFR 46.205). BSEE believes it meets the criteria set forth at 43 CFR 
46.210(i) for a Departmental Categorical Exclusion in that this 
proposed rule is ``. . . of an administrative, financial, legal, 
technical, or procedural nature . . . .'' Further, we have 
preliminarily determined that the proposed rule does not involve any of 
the extraordinary circumstances listed in 43 CFR 46.215 that would 
require further analysis under NEPA. The proposed rule does not 
authorize any activities on the OCS.

[[Page 29809]]

The proposed rule involves the review of concepts and specialized 
requirements associated with deepwater needs (special moorings, 
fittings, production equipment, HPHT items, etc.); however, actual 
approval of Conceptual Plans and DWOPs are for administrative purposes 
and do not directly lead to OCS activity that can result in 
environmental impacts. The Conceptual Plans and DWOPs only lead to an 
action once they are included and addressed in an Exploration Plan 
(EP), Development Operations Coordination Document (DOCD), or 
Development and Production Plan (DPP) and subsequent permit 
applications. EPs, DOCDs, DPPs, as well as the subsequent well and 
facility permit applications, are reviewed under site-specific NEPA 
analyses. Only EPs, DOCDs, and DPPs include the detailed regulatory 
requirements to fully assess environmental impacts. If an operator 
chooses to modify their Conceptual Plans, DWOPs, or proposed technology 
or submit a new one for an activity that has already been reviewed and 
approved under the respective EP, DOCD, or DPP, then the operator must 
submit a revised EP, DOCD, or DPP as per 30 CFR 550.283, which would 
undergo additional NEPA analysis.

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 Nation's Energy Supply (E.O. 13211)

    This proposed rule is not a significant energy action under the 
definition in E.O. 13211. Although the rule is a significant regulatory 
action under E.O. 12866, it is not likely to have a significant adverse 
effect on the supply, distribution, or use of energy. 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:
    (1) Be logically organized;
    (2) Use the active voice to address readers directly;
    (3) Use clear language rather than jargon;
    (4) Be divided into short sections and sentences; and
    (5) 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, or the sections where you feel lists or tables would be 
useful.

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. In order for 
BSEE to withhold from disclosure your personal identifying information, 
you must identify any information contained in your comment submittal 
that, if released, would constitute a clearly unwarranted invasion of 
your personal privacy. You must also briefly describe any possible 
harmful consequence(s) of the disclosure of information, such as 
embarrassment, injury, or other harm. While you may request that we 
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 impact statements, Environmental protection, Government 
contracts, Incorporation by reference, Investigations, Oil and gas 
exploration, Outer Continental Shelf--mineral resources, Outer 
Continental Shelf--rights-of-way, Penalties, Pipelines, Reporting and 
recordkeeping requirements, Sulfur.

Laura Daniel-Davis,
Principal Deputy Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the Bureau of Safety and 
Environmental Enforcement (BSEE) is proposing to amend 30 CFR part 250 
as follows:

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

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

    Authority:  30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 
1321(j)(1)(C), 43 U.S.C. 1334.

Subpart A--General

0
2. Amend Sec.  250.105 by adding definitions for ``BOP systems and 
related equipment'' and ``HPHT environment' in alphabetical order to 
read as follows:


Sec.  250.105   Definitions.

* * * * *
    BOP systems and related equipment includes all pressure controlling 
and pressure containing well control equipment that may or will be 
exposed to the well's MASP during drilling, completion, workover, 
intervention, or abandonment. Well control equipment includes equipment 
that is installed for the purpose of pressure control and containment 
when it becomes necessary to physically enter a well bore during 
drilling, completion, workover, intervention, or abandonment modes of 
operation.
* * * * *
    HPHT environment means when one or more of the following well 
conditions exist:
    (1) The drilling, completion, workover, intervention, injection, 
production, or abandonment of the well requires pressure controlling or 
pressure containing equipment, including well control equipment, 
assigned a pressure rating greater than 15,000 psia or a temperature 
rating greater than 350 degrees Fahrenheit;
    (2) The MASP or SITP is greater than 15,000 psia on the seafloor 
for a well with a subsea wellhead or at the surface for a well with a 
surface wellhead; or
    (3) The flowing temperature is greater than 350 degrees Fahrenheit 
on the seafloor for a well with a subsea wellhead or at the surface for 
a well with a surface wellhead.
* * * * *
0
3. Amend Sec.  250.125 by revising paragraph (a)(2) to read as follows:


Sec.  250.125  Service fees.

    (a) * * *

[[Page 29810]]



------------------------------------------------------------------------
                                                              30 CFR
  Service--processing of the following      Fee amount       citation
------------------------------------------------------------------------
 
                              * * * * * * *
(2) Deepwater Operations Plan (DWOP)
 process:
    (i) Project Conceptual Plan.........          $2,510        250.226.
    (ii) New or Unusual Technology                32,611        250.226.
     Conceptual Plan....................
    (iii) New or Unusual Technology               71,570        250.226.
     Barrier Conceptual Plan............
    (iv) DWOP...........................          13,907        250.235.
    (v) Revised DWOP....................             896        250.246.
    (vi) Combined Conceptual Plan/DWOP..           8,959        250.245.
    (vii) Supplemental DWOP.............           8,959        250.247.
 
                              * * * * * * *
------------------------------------------------------------------------

0
4. Amend Sec.  250.198 by revising the introductory text and paragraphs 
(e)(82), (86), (91), and (i)(1) to read as follows:


Sec.  250.198  Documents incorporated by reference.

    Certain material is incorporated by reference into this [chapter/
subchapter/part/subpart] with the approval of the Director of the 
Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. 
All approved material is available for inspection at BSEE and at the 
National Archives and Records Administration (NARA). Contact BSEE at: 
the Houston BSEE office at 1919 Smith Street Suite 14042, Houston, 
Texas 77002; 1-844-259-4779. For information on the availability of 
this material at NARA, email: <a href="/cdn-cgi/l/email-protection#cea8bce0a7a0bdbeabadbaa7a1a08ea0afbcafe0a9a1b8"><span class="__cf_email__" data-cfemail="2a4c58044344595a4f495e4345446a444b584b044d455c">[email protected]</span></a>, or go to: 
www.archives.gov/federal-register/cfr/ibr-locations.html. The material 
may be obtained from the following source(s):
* * * * *
    (e) * * *
    (82) ANSI/API Spec. 6A, Specification for Wellhead and Christmas 
Tree Equipment, Twentieth Edition, October 2010; Addendum 1, November 
2011; Errata 2, November 2011; Addendum 2, November 2012; Addendum 3, 
March 2013; Errata 3, June 2013; Errata 4, August 2013; Errata 5, 
November 2013; Errata 6, March 2014; Errata 7, December 2014; Errata 8, 
February 2016; Addendum 4, June 2016; Errata 9, June 2016; Errata 10, 
August 2016; incorporated by reference at Sec. Sec.  250.518(c), 
250.619(c), 250.730, 250.802(a), 250.803(a), 250.833, 250.873(b), 
250.874(g), and 250.1002(b);
* * * * *
    (86) ANSI/API Spec. 11D1, Packers and Bridge Plugs, Third Edition, 
April 2015; Errata 1, August 2019; incorporated by reference at 
Sec. Sec.  250.518(e), 250.619(e), and 250.1703;
* * * * *
    (91) ANSI/API Spec. 17D, Design and Operation of Subsea Production 
Systems--Subsea Wellhead and Tree Equipment, Second Edition, May 2011; 
incorporated by reference at Sec. Sec.  250.518(c), 250.619(c), and 
250.730;
* * * * *
    (i) * * *
    (1) NACE Standard MR0175-2003, Standard Material Requirements, 
Metals for Sulfide Stress Cracking and Stress Corrosion Cracking 
Resistance in Sour Oilfield Environments, Revised January 17, 2003; 
incorporated by reference at Sec. Sec.  250.490, 250.518(a), 
250.619(a), and 250.901;
* * * * *
0
5. Revise Subpart B to read as follows:
Subpart B--Plans and Information

General Information

Sec.
250.200 Definitions.
250.201 What plans and information must I submit before I conduct 
any activities on my lease or unit?
250.202 How must I protect the rights of the Federal government?
250.203 Are there special requirements if my well affects an 
adjacent property?
250.204 Requirements for high pressure high temperature (HPHT) 
barrier equipment.
250.205 [Reserved]

Barrier Equipment and Systems

250.206 What equipment does BSEE consider to be a Barrier?
250.207 How must barrier systems be used?

Activities and Post-Approval Requirements for the EP, DPP, DWOP, and 
DOCD

250.208 How must I conduct activities under an approved EP, DPP, or 
DOCD?
250.209 What must I do to conduct activities under the approved EP, 
DPP, or DOCD?
250.210 Do I have to conduct post-approval monitoring?
250.211 What are my new or unusual technology failure reporting 
requirements?
250.212-250.219 [Reserved]

Deepwater Operations Plan (DWOP) Process

250.220 What is the DWOP Process?
250.221 When must I use the DWOP Process?
250.222-250.224 [Reserved]

Conceptual Plans

250.225 What are the types of Conceptual Plans that I must submit?
250.226 When and how must I submit each applicable Conceptual Plan?
250.227 What must the Project Conceptual Plan contain?
250.228 What must the New or Unusual Technology Conceptual Plan 
contain?
250.229 What must the New or Unusual Technology Barrier Conceptual 
Plan include?
250.230 What are your requirements for the Independent Third Party 
(I3P) nomination?
250.231 What are the I3P review requirements for Conceptual Plan 
reviews?
250.232 General requirements for any I3P Report.

DWOP Approval

250.235 When and how must I submit the DWOP?
250.236 What information must I submit with the DWOP?
250.237 What general information must my DWOP include?
250.238 What well or completions information must my DWOP include?
250.239 What structural information must my DWOP include?
250.240 What Production Safety System information must my DWOP 
include?
250.241 What subsea systems and pipeline information must my DWOP 
include?
250.242 What new or unusual technology information must my DWOP 
include?
250.243 and 250.244 [Reserved]
250.245 May I combine the Conceptual Plan and the DWOP?
250.246 When must I revise my DWOP?
250.247 When must I supplement my DWOP?
250.248 What information must I include in my Supplemental DWOP?

Subpart B--Plans and Information

General Information


Sec.  250.200  Definitions.

    Acronyms and terms used in this subpart have the following 
meanings:
    (a) Acronyms used frequently in this subpart are listed 
alphabetically below:

[[Page 29811]]

    BOEM means Bureau of Ocean Energy Management of the U.S. Department 
of the Interior.
    BSEE means Bureau of Safety and Environmental Enforcement of the 
U.S. Department of the Interior.
    CID means Conservation Information Document.
    CZMA means Coastal Zone Management Act.
    DOCD means Development Operations Coordination Document.
    DPP means Development and Production Plan.
    DWOP means Deepwater Operations Plan.
    EIA means Environmental Impact Analysis.
    EP means Exploration Plan.
    ESA means Endangered Species Act.
    HPHT means High Pressure High Temperature
    MMPA means Marine Mammal Protection Act.
    NPDES means National Pollutant Discharge Elimination System.
    NTL means Notice to Lessees and Operators.
    OCS means Outer Continental Shelf.
    (b) Terms used in this subpart are listed alphabetically below:
    Amendment means a change you make to an EP, DPP, or DOCD that is 
pending before BOEM for a decision (see 30 CFR 550.232(d) and 
550.267(d)).
    Barrier categorization includes identifying barriers as one of the 
following two types of categories:
    Category 1 Barrier means any equipment, component, or assembly that 
functions as part of a primary barrier system during any operational 
phase of its life cycle. The operational phases of the barrier 
equipment, component, or assembly are drilling, completion, workover, 
intervention, injection, production, or abandonment.
    Category 2 Barrier means any equipment, component, or assembly that 
normally functions as part of a secondary barrier system in all 
operational phases of its life cycle, except when a primary barrier 
fails. The operational phases of the barrier equipment, component, or 
assembly are drilling, completion, workover, intervention, injection, 
production, or abandonment. BSEE may consider non-barrier structural 
components of a barrier system as Category 2 barrier if failure of this 
structural component could reasonably result in a barrier failure.
    Primary Barrier system means the component or group of components 
that is designated as the principal means of isolating the source of 
hydrocarbons and/or pressure from people and the environment.
    Secondary Barrier system means the component or group of components 
that is designated as the secondary means of isolating the source of 
hydrocarbons and/or pressure from people and the environment.
    New or unusual technology means equipment or procedures used for 
any drilling, completion, workover, intervention, injection, 
production, pipeline, platform, decommissioning, or abandonment 
operations that meet any of the following criteria:
    (1) Have not been approved for use or used extensively in a BSEE 
OCS Region;
    (2) Have not been approved for use or used extensively under the 
anticipated operating conditions;
    (3) Have operating characteristics that are outside the performance 
parameters established in 30 CFR part 250;
    (4) Will operate in an HPHT environment as defined in Sec.  
250.105; or
    (5) Is part of a primary or secondary barrier system that uses 
materials, design analysis techniques, validation testing methods, or 
manufacturing processes not addressed in existing industry standards.
    Subsea tieback development technology means, but is not limited to, 
floating production systems, tension leg platforms, spars, Floating 
Production Storage and Offloading Vessel (FPSO) systems, guyed towers, 
compliant towers, subsea manifolds, subsea wells, hybrid wells, and 
other subsea completion or production components that rely on a remote 
site or host facility for utility and well control services.


Sec.  250.201   What plans and information must I submit before I 
conduct any activities on my lease or unit?

    (a) Plans and permits. Before you conduct the activities on your 
lease or unit listed in the following table, you must submit, and BSEE 
must approve, the listed plans, and any applicable permits. Your plans 
and applicable permits may cover one or more leases or units.

------------------------------------------------------------------------
You must have BSEE approval of                             Additional
          a(n) . . .               Before you . . .        information
------------------------------------------------------------------------
(1) New or Unusual Technology   install the new or      Must be approved
 Conceptual Plan.                unusual technology.     before any
                                                         associated
                                                         application or
                                                         permit (e.g.,
                                                         pipeline,
                                                         platform, APD,
                                                         APM) approval.
(2) New or Unusual Technology   install the new or      (i) Is required
 Barrier Conceptual Plan.        unusual technology      for any project
                                 barrier equipment.      or system
                                                         involving new
                                                         or unusual
                                                         technology that
                                                         is also
                                                         identified as a
                                                         primary or
                                                         secondary
                                                         barrier.
                                                        (ii) Must be
                                                         approved before
                                                         any associated
                                                         application or
                                                         permit (e.g.,
                                                         pipeline,
                                                         platform, APD,
                                                         APM) approval.
(3) Project Conceptual Plan...  conduct post-drilling   Must be approved
                                 installation or well    before well
                                 completion activities   completion
                                 for a deepwater         permit (e.g.,
                                 development project,    APM) approval.
                                 or for any project
                                 that will involve the
                                 use of a subsea
                                 tieback development
                                 technology in any
                                 water depth.
(4) Deepwater Operations Plan   (i) conduct post-       Must include
 (DWOP),.                        completion              reference to
                                 installation            all applicable,
                                 activities for a        previously
                                 deepwater development   approved
                                 project, or for any     Conceptual
                                 project that will       Plans for the
                                 involve the use of a    associated
                                 subsea tieback          development
                                 development             project.
                                 technology in any
                                 water depth, which
                                 may include new or
                                 unusual technology,
                                 or new or unusual
                                 technology barrier
                                 equipment; and.
                                (ii) initiate
                                 production
                                 activities..
------------------------------------------------------------------------


[[Page 29812]]

    (b) Submitting additional information. On a case-by-case basis, the 
Regional Supervisor may require you to submit additional information if 
the Regional Supervisor determines that it is necessary to evaluate 
your proposed plan or permit.
    (c) Referencing. In preparing your proposed plan or permit, you may 
reference information and data discussed in other plans or permits you 
previously submitted or that are otherwise readily available to BSEE.


Sec.  250.202   How must I protect the rights of the Federal 
government?

    (a) To protect the rights of the Federal government, you must 
either:
    (1) Drill and produce the wells that the Regional Supervisor 
determines are necessary to protect the Federal government from loss 
due to production on other leases or units or from adjacent lands under 
the jurisdiction of other entities (e.g., State and foreign 
governments); or
    (2) Pay a sum that the Regional Supervisor determines as adequate 
to compensate the Federal government for your failure to drill and 
produce any well.
    (b) Payment under paragraph (a)(2) of this section may constitute 
production in paying quantities for the purpose of extending the lease 
term.
    (c) You must complete and produce any penetrated hydrocarbon-
bearing zone that the Regional Supervisor determines is necessary to 
conform to sound conservation practices.


Sec.  250.203   Are there special requirements if my well affects an 
adjacent property?

    For wells that could intersect or drain an adjacent property, the 
Regional Supervisor may require special measures to protect the rights 
of the Federal government and objecting lessees or operators of 
adjacent leases or units.


Sec.  250.204   Requirements for high pressure high temperature (HPHT) 
barrier equipment.

    If you plan to install HPHT barrier equipment, you must submit 
information with your applicable permit and/or application, New or 
Unusual Technology Barrier Conceptual Plan, and/or DWOP that 
demonstrates the equipment is fit for service in the applicable HPHT 
environment. You must follow the applicable DWOP Process requirements, 
including Sec. Sec.  250.229 and 250.242.


Sec.  250.205   [Reserved]

Barrier Equipment and Systems


Sec.  250.206  What equipment does BSEE consider to be a Barrier?

    A barrier or barrier system is any engineered equipment, materials, 
component, or assembly that is installed to contain a hydrocarbon or 
other pressure source(s) to prevent harm to people or the environment. 
BSEE only recognizes barriers (non-mechanical or mechanical in nature) 
that are either permanently or temporarily installed, pressure 
controlling, and/or pressure containing. Pressure controlling barriers 
must be able to be activated on demand. You must be able to function 
and/or pressure test your barriers or barrier systems to a defined 
acceptance criteria that can be repeated. If the barrier or barrier 
system is classified as Safety and Pollution Prevention Equipment 
(SPPE) (as described under Sec.  250.801(a)), then it must also meet 
the leak test requirements established in Subpart H.


Sec.  250.207   How must barrier systems be used?

    You must install and maintain a primary and a secondary barrier 
system (redundant barriers) to prevent a loss of containment during any 
operational phase of a well, flowline, pipeline, production, or riser 
system.

Activities and Post-Approval Requirements for the EP, DPP, DWOP, and 
DOCD


Sec.  250.208   How must I conduct activities under an approved EP, 
DPP, or DOCD?

    (a) Compliance. You must conduct all of your lease and unit 
activities according to your approved EP, DPP, or DOCD and any approval 
conditions. If you fail to comply with your approved EP, DPP, or DOCD:
    (1) You may be subject to BSEE enforcement action, including civil 
penalties; and
    (2) The lease(s) involved in your EP, DPP, or DOCD may be forfeited 
or cancelled under 43 U.S.C. 1334(c) or (d). If this happens, you will 
not be entitled to compensation under Sec.  550.185(b) and 30 CFR 
556.77.
    (b) Emergencies. Nothing in this subpart or in your approved EP, 
DPP, or DOCD relieves you of, or limits your responsibility to take 
appropriate measures to meet emergency situations. In an emergency 
situation, the Regional Environmental Officer may approve or require 
departures from your approved EP, DPP, or DOCD.


Sec.  250.209   What must I do to conduct activities under the approved 
EP, DPP, or DOCD?

    (a) Approvals and permits. Before you conduct activities under your 
approved EP, DPP, or DOCD you must obtain the following approvals and 
or permits, as applicable, from the District Manager or BSEE Regional 
Supervisor:
    (1) Approval of Applications for Permits to Drill (APDs) (see 30 
CFR 250.410);
    (2) Approval of production safety systems (see 30 CFR 250.800);
    (3) Approval of new platforms and other structures (or major 
modifications to platforms and other structures) (see 30 CFR 250.905);
    (4) Approval of applications to install lease term pipelines (see 
30 CFR 250.1007); and
    (5) Other permits, as required by applicable law.
    (b) Conformance. The activities proposed in these applications and 
permits must conform to the activities described in detail in your 
approved EP, DPP, or DOCD.


Sec.  250.210   Do I have to conduct post-approval monitoring?

    The Regional Supervisor may direct you to conduct monitoring 
programs, including monitoring in accordance with the ESA and the MMPA, 
in association with your approved EP, DPP, DWOP, or DOCD. You must 
retain copies of all monitoring data obtained or derived from your 
monitoring programs and make them available to BSEE upon request. The 
Regional Supervisor may require you to:
    (a) Submit monitoring plans for approval before you begin work; and
    (b) Prepare and submit reports that summarize and analyze data and 
information obtained or derived from your monitoring programs. The 
Regional Supervisor will specify requirements for preparing and 
submitting these reports.


Sec.  250.211   What are my new or unusual technology failure reporting 
requirements?

    If you have an approved new or unusual technology and it 
experiences a failure during or post-installation, such that the 
technology is unable to perform its intended function or if it will be 
recovered and repaired or replaced, you must notify the applicable 
Regional Supervisor within 30 days of the failure and provide a written 
report as soon as available. The written report must identify the root 
cause(s) for the failure. You must also follow all applicable failure 
or incident reporting requirements associated with the failure (e.g., 
Sec. Sec.  250.188, 250.730, and 250.803).

[[Page 29813]]

Sec.  250.212-250.219   ]Reserved]

Deepwater Operations Plan (DWOP) Process


Sec.  250.220   What is the DWOP Process?

    (a) The DWOP Process consists of providing sufficient information 
from a total system approach for BSEE to review:
    (1) A deepwater development project,
    (2) A subsea tieback development technology, or
    (3) Any other project or system that uses new or unusual technology 
during any phase of drilling, completion, workover, intervention, 
injection, production, pipeline, platform, decommissioning, or 
abandonment operations.
    (b) The DWOP Process does not replace but complements other 
submittals required by the regulations, such as BOEM EPs, DPPs, and 
DOCDs, or BSEE applications and/or permits (e.g., APD, Application for 
Permit to Modify (APM), pipeline, and platform). BSEE will use the 
information in your DWOP Process to determine whether the project will 
be developed in an acceptable manner, particularly with respect to 
operational safety and environmental protection issues involved with a 
deepwater development project, subsea tieback development technology, 
or new or unusual technology.
    (c) The DWOP Process consists of two phases:
    (1) The Conceptual Plans. The Conceptual Plans outline certain 
equipment and process specifications, operational concepts, and basis 
of design that you plan to use for project development, and for 
applicable equipment design, installation and operation. Sections 
250.227 through 250.229 prescribe what each of the Conceptual Plans 
must contain. Each Conceptual Plan may be submitted separately or 
combined as applicable; and
    (2) The DWOP. The DWOP identifies specific design, fabrication, 
installation and operational requirements for equipment, systems, and 
activities as applicable in Sec. Sec.  250.236 through 250.242.


Sec.  250.221   When must I use the DWOP Process?

    (a) You must use the DWOP Process for any project that meets any of 
the following criteria:
    (1) Is planned in water depths greater than 1000 ft;
    (2) Will include the use of subsea tieback development technology, 
regardless of water depth; or
    (3) Will include the use of any new or unusual technology for any 
drilling, completion, workover, intervention, injection, production, 
pipeline, platform, decommissioning, or abandonment project.
    (b) If you are unsure if your project contains subsea tieback 
development technology or new or unusual technology, you must contact 
the Regional Supervisor for guidance.


Sec.  250.222-250.224   [Reserved]

Conceptual Plans


Sec.  250.225   What are the types of Conceptual Plans that I must 
submit?

    There are three types of Conceptual Plans:
    (a) A Project Conceptual Plan--is required for any project that is 
planned in water depths greater than 1000 feet or will include the use 
of subsea tieback development technology, regardless of water depth 
(see Sec.  250.221 paragraphs (a)(1) and (2))
    (b) A New or Unusual Technology Conceptual Plan--is required for 
any project or system that involves equipment or systems that are 
considered new or unusual technology (see Sec.  250.200 for the 
definition of new or unusual technology); and
    (c) A New or Unusual Technology Barrier Conceptual Plan--is 
required for any project or system involving new or unusual technology 
that is also identified as a primary or secondary barrier (see Sec.  
250.200 for the definition of primary or secondary barriers).


Sec.  250.226   When and how must I submit each applicable Conceptual 
Plan?

    You must submit each applicable Conceptual Plan to the Regional 
Supervisor after you have decided on the general concept(s) for a 
project or system, and before you begin final engineering design of the 
equipment, well, well safety control system, or subsea production 
systems. You must submit, for BSEE approval, each Conceptual Plan 
according to the following table:

------------------------------------------------------------------------
                                Where to find the        Additional
     Conceptual plan type          description          information
------------------------------------------------------------------------
(a) Project Conceptual Plan...     Sec.   250.227  You may not complete
                                                    any production or
                                                    injection well or
                                                    install the tree
                                                    before BSEE has
                                                    approved the Project
                                                    Conceptual Plan.
(b) New or Unusual Technology      Sec.   250.228  (1) You may not
 Conceptual Plan.                                   install any new or
                                                    unusual technology
                                                    until BSEE approves
                                                    your new or unusual
                                                    technology
                                                    Conceptual Plan.
                                                   (2) Your plan must be
                                                    approved by BSEE
                                                    before it can
                                                    approve any
                                                    associated
                                                    application or
                                                    permit (e.g.,
                                                    pipeline, platform,
                                                    APD, APM) approval.
                                                   (3) The Regional
                                                    Supervisor may
                                                    require the operator
                                                    to use an
                                                    independent third
                                                    party to perform
                                                    certain functions
                                                    and verifications in
                                                    accordance with Sec.
                                                      250.231, as
                                                    applicable.
(c) A New or Unusual               Sec.   250.229  (1) You must submit a
 Technology Barrier Conceptual                      new or unusual
 Plan.                                              technology Barrier
                                                    Conceptual Plan for
                                                    any project or
                                                    system involving new
                                                    or unusual
                                                    technology that is
                                                    also identified as a
                                                    primary or secondary
                                                    barrier.
                                                   (2) Your plan must be
                                                    approved by BSEE
                                                    prior to new or
                                                    unusual technology
                                                    barrier equipment
                                                    installation.
                                                   (3) All new or
                                                    unusual technology
                                                    barrier equipment
                                                    must be approved by
                                                    BSEE before any
                                                    associated
                                                    application or
                                                    permit (e.g.,
                                                    pipeline, platform,
                                                    APD, APM) approval.
                                                   (4) All new or
                                                    unusual technology
                                                    Barrier Conceptual
                                                    Plans require the
                                                    use of an
                                                    Independent Third
                                                    Party (I3P) to
                                                    perform certain
                                                    functions and
                                                    verifications in
                                                    accordance with Sec.
                                                      250.231.
------------------------------------------------------------------------


[[Page 29814]]

Sec.  250.227   What must the Project Conceptual Plan contain?

    In the Project Conceptual Plan, you must explain the basis of 
design that you will use to develop the field. You must include the 
following information:
    (a) An overview of the development concept(s);
    (b) The system control type (i.e., direct hydraulic or electro-
hydraulic);
    (c) The distance from each of the wells to the host platform, and 
umbilical length(s);
    (d) Confirmation that the subsea production safety system will 
comply with Subpart H of this part;
    (e) For a new facility, a description of the type of facility you 
plan to install (e.g. Spar, tension leg platform (TLP), FPSO, etc.);
    (f) For a subsea tieback to an existing facility, a statement 
identifying whether a minor or major structural modification will be 
made to the facility and the facility remaining design life. If 
modifications will be made to the facility, a calculation of the 
facility's remaining design life and explanation of how the 
modifications will impact the design life;
    (g) A statement regarding whether the host facility will be manned 
or unmanned;
    (h) A schedule of development activities, including well 
completion, facility installation, and date of first oil;
    (i) Schematics, including:
    (1) A well location plat,
    (2) A subsea field schematic depicting the planned development 
infrastructure that contains the wells, pipelines, riser systems, 
umbilical(s), and facility footprint,
    (3) The surface or subsea tree,
    (4) Wellbore and completion schematic for a typical well (including 
Surface Controlled Subsurface Safety Valve (SCSSV) location and 
chemical injection points; and depiction or description of gas zones, 
if any, behind the production casing or production liner and how those 
gas zones will be isolated), and
    (5) Information concerning the drilling and completion systems.
    (j) The estimated shut-in tubing pressure for the proposed well(s), 
including the calculation used to arrive at the estimate, specifying 
true vertical depth (TVD), reservoir pressure, and the fluid gradient 
used, or a brief discussion of the pressure volume temperature (PVT) 
data used for estimation;
    (k) The wellbore static bottomhole temperature and the estimated 
flowing temperature at the tree;
    (l) The pressure and temperature rating of the tree and wellhead;
    (m) Identify if there will be corrosive production (e.g., hydrogen 
sulfide (H<INF>2</INF>S), Carbon dioxide (CO<INF>2</INF>), Mercury (Hg) 
or injection fluids (e.g., acid), including concentrations;
    (n) Identify whether any of the proposed equipment will be re-
furbished and re-certified;
    (o) Identify whether enhanced recovery is planned for the early 
life of the project;
    (p) Identify whether any new or unusual technology will be used to 
develop your project involving the following activities: drilling, 
completion, injection, production, pipeline, or platform;
    (q) Identify whether the well(s) will include smart completion 
technology; and
    (r) Payment of the service fee listed in Sec.  250.125.


Sec.  250.228   What must the New or Unusual Technology Conceptual Plan 
contain?

    (a) You must include the following information, as applicable, in 
your New or Unusual Technology Conceptual Plan:
    (1) How the New or Unusual Technology Conceptual Plan fits within 
your overall site specific project, if applicable, including an 
overview of the project development concepts.
    (2) A description of the technology and specific conditions under 
which it will be used;
    (3) Description of shut-in capabilities and procedures;
    (4) Description of redundancies of critical components or systems 
that will be used;
    (5) Discussion of how the new or unusual technology could impact 
the barrier system, if any, including
    (i) Detection method for new or unusual technology failure,
    (ii) How the barrier functions to a fail-safe state when impacted 
by new or unusual technology failure;
    (6) Information on inspection and testing capabilities;
    (7) A risk assessment and failure mode analysis;
    (8) Operating procedures;
    (9) History of development and application of the technology;
    (10) The basis of design, including design verification and 
validation testing;
    (11) Detailed schematics;
    (12) Justification for new or unusual technology use, and any 
additional information required for a complete review;
    (13) A list of requests for alternate procedures or equipment in 
accordance with Sec.  250.141 and request for departures in accordance 
with Sec.  250.142;
    (14) A certification statement that the technology is fit for 
service in the applicable environment (for the specific project at 
location); and
    (15) Payment of the service fee listed in Sec.  250.125
    (b) The Regional Supervisor may require the use of an Independent 
Third Party (I3P) according to Sec.  250.230 if the system or equipment 
requires a high degree of specialized or technically complex 
engineering knowledge, expertise, and experience to evaluate, or is not 
addressed in existing industry standards.
    (1) The Regional Supervisor may also require you to follow the I3P 
requirements according to Sec.  250.231, as applicable, on a case-by-
case basis.
    (2) If you have any questions about I3P requirements for the New or 
Unusual Technology Conceptual Plan, contact the applicable Regional 
Supervisor.


Sec.  250.229   What must the New or Unusual Technology Barrier 
Conceptual Plan include?

    Your New or Unusual Technology Barrier Conceptual Plan must include 
the following information:
    (a) How the New or Unusual Technology Barrier Conceptual Plan fits 
within your overall site specific project, if applicable. You must 
include an overview of the project development concepts and a proposed 
schedule for submittal of associated conceptual plans;
    (b) A diagram depicting the primary and secondary barriers that 
includes all components, assemblies, or sub-assemblies, each labeled 
and categorized as a Category 1 barrier or Category 2 barrier;
    (c) A list of the primary and secondary barriers that includes all 
components, assemblies, or sub-assemblies specifying each assigned 
barrier as either a Category 1 barrier or Category 2 barrier;
    (d) A list of the engineering standards that will be used in the 
equipment's material selection and qualification, design verification 
analysis, and design validation testing;
    (e) A list of requested alternate procedures or equipment in 
accordance with Sec.  250.141 and requested departures in accordance 
with Sec.  250.142;
    (f) A list of the functional requirements (i.e., environmental and 
physical loads (magnitude and frequency)) for which the barrier 
equipment is being designed;
    (g) Description of the equipment's safety critical functions, 
(i.e., function(s) performed by or inherent to the equipment enabling 
it to achieve or maintain a safe state);
    (h) An I3P nomination, in accordance with Sec.  250.230(a);

[[Page 29815]]

    (i) An I3P verification plan that includes the following:
    (1) A discussion of the equipment's material selection and 
qualification;
    (2) A discussion of the equipment's design verification analyses;
    (3) A discussion of the equipment's design validation testing;
    (4) An explanation of why the analyses, processes, and procedures 
ensure that the equipment is fit for service in the applicable 
environment; and
    (5) Details regarding how the I3P will address the additional items 
listed in Sec.  250.231
    (j) I3P reports as required in Sec.  250.232;
    (k) Payment of the service fee listed in Sec.  250.125; and
    (l) After BSEE receives all of the required I3P reports, a 
certification statement that the barrier equipment is fit for service 
in the applicable environment (for the specific project location).


Sec.  250.230   What are your requirements for the Independent Third 
Party (I3P) nomination?

    When required by BSEE and in accordance with each applicable 
Conceptual Plan, you must:
    (a) Nominate I3P(s) to review the design verification and design 
validation documentation of the Original Equipment Manufacturer (OEM). 
Your I3P must be a technical classification society, a licensed 
professional engineering firm, or a registered professional engineer 
capable of providing the required certifications and verifications. You 
must submit your I3P nomination(s) to BSEE for approval. Your I3P 
nomination must include the following:
    (1) Previous experience in third-party verification or experience 
in the design, fabrication, or installation of applicable offshore oil 
and gas equipment.
    (2) Technical capabilities of the individual or the primary staff 
for the specific project;
    (3) Size and type of organization or corporation;
    (4) In-house availability of, or access to, appropriate technology 
to review the specific project. This should include computer programs, 
hardware, and testing materials and equipment as applicable;
    (5) Ability to perform the I3P functions for the specific project 
considering current commitments (e.g., project timelines, schedules, 
and personnel availability); and
    (6) Previous experience with BSEE requirements and procedures;
    (b) You must ensure that the I3P has access to all associated 
documentation and equipment related to items Sec.  250.229(i) to 
perform the complete reviews in accordance with Sec.  250.231, 
including OEM documentation and access to the OEM fabrication and 
manufacturing locations.


Sec.  250.231   What are the I3P review requirements for Conceptual 
Plan reviews?

    As directed by BSEE, or for all new or unusual technology Barrier 
review for Equipment categorized as Category 1 or Category 2, the I3P 
must:
    (a) Review the following information regarding the applicable 
equipment and/or system:
    (1) Basis of Design, Technical Specification (if known at this 
point in the design process) and Functional Requirements (i.e., 
environmental and physical loads (magnitude and frequency)).
    (2) Risk assessment and failure mode analysis
    (3) Material specification, selection, qualification, and testing
    (4) Design verification analysis, including:
    (i) Structural/strength analysis and
    (ii) Fatigue assessment and/or analysis;
    (5) If fatigue is identified as a potential failure mode, as 
identified in the fatigue assessment and/or analysis in paragraph 
(a)(4)(ii) of this section, the plan to record and gather data (load 
monitoring) in order to conduct a future fatigue analysis;
    (6) Design validation testing;
    (7) Fabrication, quality management system, and inspection and test 
plan that identifies the quality control/quality assurance process, and 
inspection of the final products.
    (b) Submit a report to BSEE documenting the review of each item 
covered under paragraph (a). Each report must clearly identify all OEM 
and operator documents used during the I3P review;
    (c) Submit to BSEE a final report summarizing each of the review 
requirements covered under paragraph (a) of this section, including:
    (1) The equipment and/or system's technical specifications, 
including a certification statement that the equipment and/or system is 
fit for purpose for the technical specification by the I3P; and
    (2) Verification that the equipment's technical specifications meet 
or exceed the project's functional requirements, including a 
certification statement that the equipment and/or system is fit for 
purpose for the proposed project by the I3P.
    (d) For any subsequent I3P review of equipment and/or system's 
technical specification that was previously approved in your New or 
Unusual Technology Barrier Conceptual Plan, the Regional Supervisor may 
accept a final report in accordance with Sec.  250.231(c), including 
the existing certification covered under paragraph (c)(1) of this 
section, in lieu of reports required in paragraph (b) of this section. 
The I3P must also submit an updated certification statement in 
accordance with Sec.  250.231(c)(2) for the specific project.


Sec.  250.232   General requirements for any I3P Report.

    An I3P report as required in Sec.  250.231 must be a standalone 
document that clearly summarizes the verification work performed and 
must contain a sufficient level of detail (i.e., quantitative 
information) and clarity to establish the basis of the I3P's findings 
and/or recommendation(s). Each report must identify the OEM or operator 
documents reviewed, the detailed I3P review, and convey the results of 
the I3P's review without requiring BSEE to review of any other 
referenced document.


Sec.  250.233-250.234   [Reserved]

DWOP Approval


Sec.  250.235   When and how must I submit the DWOP?

    You must submit the DWOP to the Regional Supervisor after BSEE has 
approved your project conceptual plan and you have substantially 
completed system design, and before you conduct post-completion 
installation activities for a deepwater development project, or for any 
project that will involve the use of subsea tieback development 
technology in any water depth which may include new or unusual 
technology or new or unusual technology barrier equipment. You may not 
begin production from the well until BSEE approves your DWOP.


Sec.  250.236   What information must I submit with the DWOP?

    Your DWOP must contain the following information, as applicable:

------------------------------------------------------------------------
                                                               Where to
      Information that you must include with your DWOP         find the
                                                             description
------------------------------------------------------------------------
(a) General information....................................         Sec.
                                                                 250.237
(b) Well or completion information.........................         Sec.
                                                                 250.238
(c) Structural information.................................         Sec.
                                                                 250.239
(d) Production safety system information...................         Sec.
                                                                 250.240
(e) Subsea system and pipeline information.................         Sec.
                                                                 250.241

[[Page 29816]]

 
(f) New or unusual technology information..................         Sec.
                                                                 250.242
------------------------------------------------------------------------

Sec.  250.237   What general information must my DWOP include?

    You must include the following general information in your DWOP, as 
applicable:
    (a) A list of any alternate compliance procedures or equipment or 
departures being requested and a list of any for which you anticipate 
requesting approval in any future applicable permit or application;
    (b) Payment of the service fee listed in Sec.  250.125; and
    (c) A list of any associated industry standards not incorporated in 
the regulations that you are using for your project design or 
operation.


Sec.  250.238   What well or completions information must my DWOP 
include?

    You must include the following information in your DWOP, as 
applicable, to align with the activities to be addressed in the 
associated well permit(s):
    (a) A description and schematic of the typical wellbore, casing, 
and completion;
    (b) Information concerning the drilling and completion systems; and
    (c) Design and fabrication information for each wellbore riser 
system (e.g., drilling, completion, workover, intervention, injection, 
or production) deployed from a floating production facility or TLP.


Sec.  250.239   What structural information must my DWOP include?

    You must include the following information in your DWOP, as 
applicable, to align with the activities, including any major 
modifications, to be addressed in the associated platform application:
    (a) Structural design, fabrication, and installation information;
    (b) Design, fabrication, installation, and monitoring information 
on the tendon, or mooring systems, including the turret or buoy system, 
if applicable; and
    (c) Information on any active station keeping system(s) involving 
thrusters or other means of propulsion.


Sec.  250.240   What Production Safety System information must my DWOP 
include?

    You must include the following information in your DWOP, as 
applicable, to align with the activities you plan to address in the 
associated production safety system application:
    (a) A general description of the operating procedures, including a 
table summarizing the curtailment of production and offloading based on 
operational considerations;
    (b) Information about the design, fabrication, and operation of an 
offtake system for transferring produced hydrocarbons to a transport 
vessel;
    (c) A description of the process facility installation and 
commissioning procedure;
    (d) Safety analysis flow diagram of the production system from the 
SCSSV downstream to the first item of separation equipment;
    (e) A certification statement that the surface and/or subsea safety 
system and emergency support systems will comply with Subpart H of this 
part. You must also include:
    (1) Methods, frequency, and acceptance criteria for testing the 
Underwater Safety Valves (USVs), SCSSVs, and Boarding Shutdown Valves 
(BSDVs);
    (2) The function and testing of the host facility Emergency 
Shutdown Device (ESD) system and its interface to the subsea system;
    (3) If applicable, a description of the surface and/or subsea 
safety system and emergency support systems not covered in Subpart H of 
this part. For systems not covered in Subpart H, you must request an 
approval of alternate procedures or equipment according to Sec.  
250.141, and you must also include a table that depicts what valves 
will close, at what times, and for what events or reasons; and
    (f) Information on the design, operation, maintenance, personnel 
competency, and testing of your subsea leak detection system to protect 
your subsea field/infrastructure (e.g., trees, manifolds, jumpers). You 
must include procedures for how you will operate the system, ensure 
system functionality, identify a leak, and the actions you will take 
when a leak is identified.


Sec.  250.241   What subsea systems and pipeline information must my 
DWOP include?

    (a) You must include the following information common to the subsea 
system and the associated pipeline systems, which constitute all or 
part of a single project development covered by the DWOP and/or aligns 
with activities addressed in your associated pipeline application, as 
applicable:
    (1) The subsea field schematic depicting the planned subsea 
development equipment and infrastructure, including wells/trees, non-
pipe subsea equipment, pipeline route(s), pipeline riser systems, 
umbilical(s), and platform footprint;
    (2) Description of the subsea development project detailing the 
subsea and pipeline equipment design criteria and analysis procedures 
(including industry standards, pressure and temperature ratings, 
materials selection), testing methods, and general operational 
procedures;
    (3) Description of the fabrication and assembly/testing location of 
subsea trees, pipelines, and non-pipe subsea equipment (manifold, 
Pipeline End Manifold (PLEM), Pipeline End Termination (PLET), Subsea 
Umbilical Termination Assembly (SUTA), subsea pumps, suction piles, 
etc.);
    (4) Summary of the Integrity Management Program for subsea tieback 
development technologies, including a plan for inspection and 
monitoring to support assessment of the condition of the systems a 
minimum of once every 10 years. This should include, but is not limited 
to, the in-service inspections or survey of hull and topsides 
structures, tendons, mooring, and pipeline and/or wellbore riser 
systems to assess component condition by inspection and analysis after 
each significant environmental event (e.g., hurricane, earthquake, loop 
and eddy currents, or mudslide) impacting the system, or once every 10 
years, whichever occurs first; and
    (5) Summary of safety and environmental controls.
    (b) You must include the following information about subsea systems 
that constitute all or part of a single project development covered by 
the DWOP, as applicable:
    (1) The system control type (i.e., direct hydraulic or electro-
hydraulic);
    (2) Well tree(s), wellhead, and non-pipe equipment general 
arrangement drawings and schematics, with size and valve type 
annotations to illustrate the tree and other equipment in operation;
    (3) The estimated shut-in tubing pressure for the proposed well(s), 
including the calculation used to arrive at the estimate, specifying 
TVD, reservoir pressure, and the fluid gradient used, or a brief 
discussion of the pressure volume temperature (PVT) data used for 
estimation;
    (4) The wellbore static bottomhole temperature and the estimated 
flowing temperature at the tree, including a description of the method 
used to calculate this estimate;
    (5) Umbilical(s) and umbilical connection(s), including an 
umbilical cross-section schematic;
    (6) Chemical or other injection systems and/or enhanced recovery 
systems to be used;

[[Page 29817]]

    (7) Corrosion monitoring and prevention/inhibition provisions;
    (8) Details of any re-furbished and/or re-certified equipment you 
plan to use; and
    (9) A schedule of development activities, including well 
completion, facility installation, and anticipated date of first oil.
    (c) You must include the following pipeline information in your 
DWOP, as applicable, to align with the activities to be addressed in 
your associated pipeline application(s):
    (1) Design and fabrication information for each pipeline riser 
system;
    (2) If you propose to use a pipeline free standing hybrid riser 
(FSHR) on a permanent installation that uses a buoyancy air can 
suspended from the top of the riser, you must provide the following 
information in your DWOP as part of the discussions required by 
paragraphs (b)(1) and (2) of this section:
    (i) A detailed description and drawings of the FSHR, buoy, and the 
associated connection system;
    (ii) Detailed information regarding the system used to connect the 
FSHR to the buoyancy air can, and associated redundancies; and
    (iii) Descriptions of your monitoring system and monitoring plan 
for the pipeline FSHR and the associated connection system for fatigue, 
stress, and any other abnormal condition (e.g., corrosion), that may 
negatively impact the riser system's integrity; and
    (3) Pipeline and pipeline riser installation methods.


Sec.  250.242   What new or unusual technology information must my DWOP 
include?

    You must include the following new or unusual technology 
information in your DWOP, as applicable:
    (a) A description of any new or unusual technology being used in 
your development project, including a reference to previously approved 
New or Unusual Technology Conceptual Plans or New or Unusual Technology 
Barrier Conceptual Plans.
    (b) A description of any new or unusual technology not covered 
under the New or Unusual Technology Conceptual Plan or New or Unusual 
Technology Barrier Conceptual Plan. You must include the same 
applicable information as required in Sec. Sec.  250.228 or 250.229.


Sec. Sec.  250.243 and 250.244   [Reserved]


Sec.  250.245   May I combine the Conceptual Plan and the DWOP?

    If your development project meets the following criteria, you may 
submit a combined Conceptual Plan/DWOP that complies with all 
applicable requirements for both, on or before the deadline for 
submitting the Conceptual Plan, as described in Sec.  250.226:
    (a) The project is similar to projects involving subsea tieback 
development technology for which you have obtained approval previously, 
and
    (b) The project does not involve either new or unusual technology 
or a new platform.


Sec.  250.246   When must I revise my DWOP?

    You must revise either the Conceptual Plan or your DWOP to reflect 
any change to the proposed plan or procedures that does not involve a 
physical alteration of the equipment on the platform or the seabed.


Sec.  250.247   When must I supplement my DWOP?

    You must supplement your DWOP to reflect additions or changes in 
your development project that:
    (a) Physically alter the platform, process facilities, equipment, 
or systems approved in your original Conceptual Plan or DWOP. If a 
Supplemental DWOP includes the addition of a well or wells (e.g., a new 
subsea field) not approved in your original DWOP, you may not complete 
or produce from the new well(s) until BSEE approves the Supplemental 
DWOP.
    (b) Involves the addition of any new or unusual technology to your 
project that was not previously covered under the New or Unusual 
Technology Conceptual Plan, New or Unusual Technology Barrier 
Conceptual Plan, or DWOP. You cannot install any new or unusual 
technology until BSEE approves the Supplemental DWOP.


Sec.  250.248   What information must I include in my Supplemental 
DWOP?

    You must include the following information, as applicable, in your 
Supplemental DWOP:
    (a) The same information for your wells or equipment as required in 
the applicable Conceptual Plan and DWOP requirements in this subpart;
    (b) Information for each applicable Conceptual Plan or DWOP section 
that is being impacted by the addition or change; and
    (c) Payment of the service fee listed in Sec.  250.125.

Subpart D--Oil and Gas Drilling Operations

0
6. Amend Sec.  250.490 by revising the introductory text to paragraph 
(p) to read as follows:


Sec.  250.490   Hydrogen sulfide.

* * * * *
    (p) Metallurgical properties of equipment. When operating in a zone 
with H<INF>2</INF>S present or when the concentration of H<INF>2</INF>S 
in the produced fluid may exceed 0.05 psi partial pressure of 
H<INF>2</INF>S, you must use equipment that is constructed of materials 
with metallurgical properties that resist or prevent sulfide stress 
cracking (also known as hydrogen embrittlement, stress corrosion 
cracking, or H<INF>2</INF>S embrittlement), chloride-stress cracking, 
hydrogen-induced cracking, and other failure modes. You must do all of 
the following:
* * * * *
0
7. Amend Sec.  250.518 by revising paragraphs (a), (c), and (d) to read 
as follows:


Sec.  250.518   Tubing and wellhead equipment.

    (a) No tubing string can be placed in service or continue to be 
used unless such tubing string has the necessary strength and pressure 
integrity and is otherwise suitable for its intended use.
    (1) The tubing string must be evaluated for burst, collapse, and 
axial loads with appropriate safety and design factors for the pressure 
and temperature environments of the completion, production, shut-in, 
and injection load cases.
    (2) The tubing string materials must be appropriate for the 
environment. You must follow NACE Standard MR0175-2003 (as incorporated 
by reference in Sec.  250.198) when H<INF>2</INF>S concentration may 
equal or exceed 0.05 psi partial pressure.
    (3) The tubing string threaded connectors must be appropriate for 
the loads identified in paragraph (a)(1) of this section.
* * * * *
    (c) You must design and test the wellhead, tree, and related 
equipment in accordance with ANSI/API Spec. 6A (as incorporated by 
reference in Sec.  250.198) or ANSI/API Spec. 17D (as incorporated by 
reference in Sec.  250.198), as applicable. The wellhead, tree, and 
related equipment must have a pressure rating greater than the maximum 
anticipated surface pressure and must be designed, installed, operated, 
maintained, and tested to achieve and maintain pressure containment and 
pressure control.
    (1) Newly completed dry trees (e.g., fixed, hybrid, or mudline 
suspension) for production or injection wells must be equipped with a 
minimum of one master valve and one surface safety valve (SSV), 
installed above the master valve, in the vertical run of the tree.
    (2) Newly completed subsea production or injection wells must be 
equipped with a minimum of one underwater safety valve (USV) installed 
in the horizontal or vertical run of the

[[Page 29818]]

tree (e.g., vertical or horizontal subsea trees).
    (3) Newly completed wells with a mudline suspension conversion to a 
subsea tree must have a minimum of two casing strings tied back and 
sealed below the tubing head. At a minimum, the production casing and 
the next outer casing must be tied back to the wellhead, to ensure 
annular isolation.
    (d) You must install, maintain, and test surface and subsurface 
safety equipment in accordance with the applicable requirements in 
Subpart H of this part.
* * * * *
0
8. Amend Sec.  250.619 by revising paragraphs (a), (c), and (d) to read 
as follows:


Sec.  250.619   Tubing and wellhead equipment.

* * * * *
    (a) No tubing string can be placed in service or continue to be 
used unless such tubing string has the necessary strength and pressure 
integrity and is otherwise suitable for its intended use.
    (1) The tubing string must be evaluated for burst, collapse, and 
axial loads with appropriate safety and design factors for the pressure 
and temperature environments of the completion, production, shut-in, 
and injection load cases.
    (2) The tubing string materials must be appropriate for the 
environment. You must follow NACE Standard MR0175-2003 (as incorporated 
by reference in Sec.  250.198) when H<INF>2</INF>S concentration may 
equal or exceed 0.05 psi partial pressure .
    (3) The tubing string threaded connectors must be appropriate for 
the loading identified in paragraph (a)(1) of this section.
* * * * *
    (c) You must design and test the wellhead, tree, and related 
equipment in accordance with ANSI/API Spec. 6A (as incorporated by 
reference in Sec.  250.198) or ANSI/API Spec. 17D (as incorporated by 
reference in Sec.  250.198), as applicable. The wellhead, tree, and 
related equipment must have a pressure rating greater than the shut-in 
tubing pressure and must be designed, installed, operated, maintained, 
and tested so as to achieve and maintain pressure containment and 
pressure control.
    (1) Dry trees (e.g.., fixed, hybrid, or mudline suspension) for 
production or injection wells must be equipped with a minimum of one 
master valve and one surface safety valve (SSV), installed above the 
master valve, in the vertical run of the tree.
    (2) Subsea production or injection wells must be equipped with a 
minimum of one underwater safety valve (USV) installed in the 
horizontal or vertical run of the tree (for vertical or horizontal 
subsea trees).
    (3) Wells with a mudline suspension conversion to a subsea tree 
must have a minimum of two casing strings tied back and sealed below 
the tubing head. At minimum, the production casing and the next outer 
casing must be tied back to the wellhead, to ensure annular isolation.
    (d) You must install, maintain, and test surface and subsurface 
safety equipment in accordance with the applicable requirements in 
Subpart H of this part.
* * * * *
0
9. Amend Sec.  250.731 by revising paragraph (c)(4) to read as follows:


Sec.  250.731   What information must I submit for BOP systems and 
system components?

------------------------------------------------------------------------
         You must submit:                        Including:
------------------------------------------------------------------------
 
                              * * * * * * *
(c) * * *.........................  (4) If using a subsea BOP, a BOP in
                                     an HPHT environment, as defined in
                                     Sec.   250.105, or a surface BOP on
                                     a floating facility, the BOP has
                                     not been compromised or damaged
                                     from previous service.
 
                              * * * * * * *
------------------------------------------------------------------------

0
10. Amend Sec.  250.732 by revising paragraph (c) to read as follows:


Sec.  250.732   What are the independent third party requirements for 
BOP systems and system components?

* * * * *
    (c) Before you begin any operations in an HPHT environment, as 
defined by Sec.  250.105, with the proposed equipment, you must include 
the following in your applicable permit:
    (1) The I3P certification required in Sec.  250.731(c);
    (2) A description of any new or unusual technology being used;
    (3) A reference to the previously approved associated new or 
unusual technology Barrier Conceptual Plan;
    (4) The final report and certification statements in accordance 
with Sec.  250.231(c); and
    (5) The fit-for-service certification statement required in Sec.  
250.229(l).
    You may not deploy your proposed HPHT BOP systems and related 
equipment until BSEE approves the New or Unusual Technology Barrier 
Equipment Conceptual Plan and appropriate permits (e.g., APD).
* * * * *


 Sec.  250.804   [Removed and Reserved]

0
11. Remove and reserve Sec.  250.804.

[FR Doc. 2022-09560 Filed 5-13-22; 8:45 am]
BILLING CODE 4310-VH-P


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