Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules 18309

operator’s current sampling program to

determine the actual levels of dust

concentrations to which miners are

exposed.

The Advisory Committee is chartered

through September 30, 1996 (60 FR

55284). MSHA will defer full

development of the proposed rule until

it has received and thoroughly

considered the Advisory Committee

recommendations.

Dated: April 17, 1996.

J. Davitt McAteer,

Assistant Secretary for Mine Safety and

Health.

[FR Doc. 96–10245 Filed 4–24–96; 8:45 am]

BILLING CODE 4510–43–P

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010–AC07

Flexibility in Keeping Leases in Force

Beyond Their Primary Term

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Proposed rule.

SUMMARY: MMS proposes to amend

regulations that specify how Outer

Continental Shelf (OCS) lessees can

continue their leases beyond their

primary term. Changes in industry

exploration practices have increased the

time necessary to collect and analyze

data associated with drilling operations.

The proposed changes would increase

from 90 to 180 days the time allowed

between operations for a lease

continued beyond its primary term.

DATES: MMS will consider all comments

we receive by June 24, 1996. We will

begin reviewing comments at that time

and may not fully consider comments

we receive after June 24, 1996.

ADDRESSES: Mail or hand-carry

comments to the Department of the

Interior; Minerals Management Service;

Mail Stop 4700; 381 Elden Street;

Herndon, Virginia 22070–4817;

Attention: Chief, Engineering and

Standards Branch.

FOR FURTHER INFORMATION CONTACT:

Lawrence H. Ake or John Mirabella,

Engineering and Standards Branch,

telephone (703) 787–1600.

Author: The principal author of this

rule is Lawrence H. Ake, Engineering

and Standards Branch, MMS, Herndon,

Virginia.

SUPPLEMENTARY INFORMATION:

I. Background

On March 1, 1994, the Department of

the Interior (DOI) published a notice in

the Federal Register (59 FR 9718–9719),

requesting comments and suggestions

on DOI agency regulations. In its notice,

DOI announced its intention to

periodically review its regulations and

asked the public to participate in the

review. Over 40 responses were

received concerning MMS regulations

from the public, industry, and

Government.

Several comments suggested that

MMS make changes to Subpart A of 30

CFR Part 250. These comments

suggested allowing 180 days between

drilling, well-reworking, or other

operations in order to keep a lease in

effect beyond its primary term.

MMS held a public meeting in New

Orleans on June 12, 1995, to discuss this

and other issues. Based on the

comments heard at that meeting, as well

as those previously received, this notice

of proposed rulemaking has been

prepared for public comment.

II. Discussion of the Proposed Rule

Under current statute (43 U.S.C.

1337(b)(2)) and MMS regulations (30

CFR 250.13 and 256.37(b)), if no

production, drilling, or well-reworking

activities occur on the lease during the

last 90 days prior to lease expiration and

no suspension of operations or

production is in effect on the lease, the

lease expires by operation of law and

lease terms.

Current § 250.13 gives lessees several

methods to keep leases in effect beyond

their primary term. The most common

method is through production of

resources and payment of a royalty.

Continuous drilling or well-reworking

activities without a break of more than

90 days will also keep a lease in effect

beyond its primary term. Other methods

for extending a lease include receiving

a suspension of production (30 CFR

250.10); a suspension of operations (30

CFR 250.10); or participation in a unit

which has another lease that is being

held beyond its primary term by one of

these operations (30 CFR 250.190 (e)

and (f)).

Commentors told MMS that although

many OCS operations can be ended and

recommenced within the present 90-day

time allowance, many require

considerably more time. The search for

oil and gas resources in the OCS has

reached a mature phase. Most of the

easily found resources have been

produced. Industry is now focusing its

efforts in deeper waters, subsalt

projects, and other areas of extremely

complex geology. The proposed changes

will allow more time for efficient and

expedient production, drilling, and

well-reworking operations.

With this rulemaking MMS proposes

to increase from 90 to 180 days the time

allowed between production, drilling, or

well-reworking operations for leases

continued beyond their primary term.

For example, under the current rule if

a lessee ceases production, drilling or

well-reworking operations on a lease 60

days before the lease expiration date, he

must resume operations within 90 days

(i.e., within 30 days after the original

lease expiration date). Under this

proposed rule, the lessee would have

180 days (i.e., 120 days after the original

lease expiration date) within which to

resume operations.

Leases that have been continued past

their primary term, will remain in force

as long as the break in operations is no

longer than 180 days. This contrasts

with 90 days provided by the current

rule.

The proposed changes will allow

MMS regulations to more accurately

reflect the realities of exploration and

production of minerals on the OCS. The

proposed changes will also allow the

Regional Supervisor to give more

flexibility to lessees who are diligently

exploring their leases.

Executive Order (E.O.) 12866

This is a significant rule under E.O.

12866 and has been reviewed by the

Office of Management and Budget.

Regulatory Flexibility Act

The DOI determined that this

proposed rule will not have a significant

effect on a substantial number of small

entities. Most entities that engage in

offshore activities as operators are not

small because of the technical and

financial resources and experience

needed to conduct offshore activities.

Small entities are more likely to operate

onshore or in State Waters—areas not

covered by the proposed regulation.

When small entities work in the OCS,

they are more likely to be contractors

rather than operators. For example, a

company that collects geologic and

geophysical data might be a small

entity. While these contractors must

follow the rules governing OCS

operations, we are not changing the

rules that govern the actual operations

on a lease. We are only proposing to

modify the rules governing the extent of

a lease beyond the primary term. The

rule could have a secondary affect. By

extending the time available to the

lessee, more leases may be active and

this could result in an increase in
18310 Federal Register / Vol. 61, No. 81 / Thursday, April 25, 1996 / Proposed Rules

opportunities for small entities to

collect data or perform other services.

The added time could also work to

benefit smaller companies who may

have slower computers and could

benefit from a longer time period for

review of data.

Paperwork Reduction Act

This proposed rule does not contain

any information collection

requirements.

Takings Implication Assessment

The DOI determined that this

proposed rule does not represent a

governmental action capable of

interference with constitutionally

protected property rights. Thus, DOI

does not need to prepare a Takings

Implication Assessment pursuant to

E.O. 12630, Government Action and

interference with constitutionally

Protected Property Rights.

Unfunded Mandate Reform Act of 1995

This rule does not contain any

unfunded mandates to State, local, or

tribal governments or the private sector.

E.O. 12778

The DOI certified to OMB that this

proposed rule meets the applicable civil

justice reform standards provided in

Sections 2(a) and 2(b)(2) of E.O. 12778.

National Environmental Policy Act

The DOI determined that this action

does not constitute a major Federal

action significantly affecting the quality

of the human environment; therefore, an

Environmental Impact Statement is not

required.

List of Subjects in 30 CFR Part 250

Continental shelf, Environmental

impact statements, Environmental

protection, Government contracts,

Incorporation by reference,

Investigations, Mineral royalties, Oil

and gas development and production,

Oil and gas exploration, Oil and gas

reserves, Penalties, pipelines, Public

lands—mineral resources, Public

lands—rights-of-way, Reporting and

recordkeeping requirements, Sulphur

development and production, Sulphur

exploration, Surety bonds.

Dated: April 3, 1996.

Bob Armstrong,

Assistant Secretary, Land and Minerals

Management.

For the reasons set forth in the

preamble, Minerals Management

Service (MMS) proposes to amend 30

CFR Part 250 as follows:

PART 250—OIL AND GAS AND

SULPHUR OPERATIONS IN THE

OUTER CONTINENTAL SHELF

1. The authority citation for part 250

continues to read as follows:

Authority: 43 U.S.C. 1334.

2. Section 250.13 is revised to read as

follows:

§ 250.13 How Does Production, Drilling, or

Well-reworking Affect Your Lease Term?

Continuous production or drilling or

well-reworking operations on the lease

will allow you to keep a lease past its

primary term. The drilling or wellreworking programs must be part of a

plan that has as its objective continuous

production on the lease. Throughout the

remainder of this section (250.13), the

term ‘‘operations’’ will refer to

continuous production, drilling, or wellreworking.

(a) How can I keep my lease in effect

if I stop conducting continuous

operations during the last 180 days of

the primary lease term? If you stop

conducting operations during the last

180 days of the primary lease term, you

must:

(1) Resume operations on the lease no

later than 180 days after the operations

ended; or

(2) Ask us for a suspension of

operations or production under 30 CFR

250.10, before the 180th day after you

stop operations. The Regional

Supervisor must approve this request; or

(3) Receive a directed suspension of

operations or production from the

Regional Supervisor under 30 CFR

250.10 before the 180th day after you

stop operations.

(b) How can I keep my lease in effect

if I stop conducting operations on a

lease that has been continued beyond its

primary term? If you stop conducting

operations on the lease, you must

comply with either paragraph (a) (1), (2),

or (3) of this section.

(c) Can I have more than 180 days to

resume operations? You may ask the

Regional Supervisor in writing to allow

you more time to resume operations on

a lease continued beyond its primary

term, when warranted by operating

conditions. In allowing additional time,

the Regional Supervisor must determine

that the longer period is in the national

interest and that it conserves resources,

prevents waste, or protects correlative

rights.

[FR Doc. 96–10059 Filed 4–24–96; 8:45 am]

BILLING CODE 4310–MR–M

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[KS–6–1–6985b, MO–31–1–7153b; FRL–

5449–1]

Approval and Promulgation of

Implementation Plans; States of

Kansas and Missouri

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: The EPA proposes to approve

the State Implementation Plan (SIP)

revisions submitted by the states of

Kansas and Missouri for the purpose of

updating the emissions inventory in the

Kansas City Maintenance Plan. The

submittals also establish a motor vehicle

emissions budget for the purposes of

fulfilling the requirements of the

Federal Transportation Conformity rule.

In the final rules section of the Federal

Register, the EPA is approving the

state’s SIP revision as a direct final rule

without prior proposal, because the

Agency views this as a noncontroversial

revision amendment and anticipates no

adverse comments. A detailed rationale

for the approval is set forth in the direct

final rule. If no adverse comments are

received in response to this proposed

rule, no further activity is contemplated

in relation to this rule. If the EPA

receives adverse comments, the direct

final rule will be withdrawn and all

public comments received will be

addressed in a subsequent final rule

based on this proposed rule. The EPA

will not institute a second comment

period on this document. Any parties

interested in commenting on this

document should do so at this time.

DATES: Comments on this proposed rule

must be received in writing by May 28,

1996.

ADDRESSES: Comments may be mailed to

Lisa V. Haugen, Environmental

Protection Agency, Air Planning and

Development Branch, 726 Minnesota

Avenue, Kansas City, Kansas 66101.

FOR FURTHER INFORMATION CONTACT: Lisa

V. Haugen at (913) 551–7877.

SUPPLEMENTARY INFORMATION: See the

information provided in the direct final

rule which is located in the rules

section of the Federal Register.

Dated: February 9, 1996.

Dennis Grams,

Regional Administrator.

[FR Doc. 96–10133 Filed 4–24–96; 8:45 am]

BILLING CODE 6560–50–P