Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules 28525

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Parts 70, 73, 74, 80, 81, 82, 101,

178, 201, and 701

[Docket Nos. 79N–0043 and 92N–0334]

Permanent Listing of Color Additive

Lakes; Extension of Comment Period

AGENCY: Food and Drug Administration,

HHS.

ACTION: Proposed rule; extension of

comment period.

SUMMARY: The Food and Drug

Administration is extending to August

3, 1996, the comment period for a

proposed rule that published March 4,

1996 (61 FR 8372). The document

proposed to list certain color additive

lakes permanently as suitable and safe

for use in foods, drugs, and cosmetics.

FDA is taking this action in response to

a request for additional time to review

and understand the details of the

proposed rule.

DATES: Written comments by August 3,

1996.

ADDRESSES: Written comments to the

Dockets Management Branch (HFA–

305), Food and Drug Administration,

12420 Parklawn Dr., rm. 1–23,

Rockville, MD 20857. Process

descriptions, identity information for

anions in precipitants, and ingredient

specifications for substrata (including

rosin), and rosin samples to the Colors

Technology Branch (HFS–126), Food

and Drug Administration, 200 C St. SW.,

Washington, DC 20204.

FOR FURTHER INFORMATION CONTACT:

Regarding proposed certification

procedures and proposed product

ingredient declarations: Julie N.

Barrows, Center for Food Safety and

Applied Nutrition (HFS–105), Food

and Drug Administration, 200 C St.

SW., Washington, DC 20204, 202–

205–4662.

Regarding other issues: Arthur L.

Lipman, Center for Food Safety and

Applied Nutrition (HFS–217), Food

and Drug Administration, 200 C St.

SW., Washington, DC 20204, 202–

418–3073.

SUPPLEMENTARY INFORMATION: In the

Federal Register of March 4, 1996 (61

FR 8372), FDA issued a proposed rule

to list certain color additive lakes

permanently as suitable and safe for use

in foods, drugs, and cosmetics. The

proposed rule modified a July 21, 1995,

proposed rule regarding label

declaration of FD&C Yellow No. 6 (60

FR 37611). Interested persons were

given until June 3, 1996, to submit

written comments on the proposal.

The agency has received a request

from the Cosmetic, Toiletry, and

Fragrance Association (CTFA) for an

extension of the comment period for the

proposal. Although FDA’s general

policy is not to extend such comment

periods so that necessary regulations

can be issued as expeditiously as

possible, in this case the agency agrees

that the requestor and others may need

additional time to study the

ramifications of this complex proposal

in order to submit meaningful

comments. Therefore, after careful

consideration, FDA is extending the

comment period for the proposal for an

additional 60 days, until August 3,

1996.

Interested persons may, on or before

August 3, 1996, submit to the Dockets

Management Branch (address above)

written comments regarding this

proposal. Four copies of any comments

are to be submitted, except that

individuals may submit one copy.

Comments are to be identified with the

docket number of the rulemaking or

rulemakings to which the comment is

relevant. As stated in the March 4, 1996,

proposed rule (61 FR 8372 at 8406),

comments on modifications to the July

21, 1995 (60 FR 37611), proposal

regarding label declaration of FD&C

Yellow No. 6 should be identified with

both docket numbers found in brackets

in the heading of this document;

comments on other aspects of the

proposed rule should be identified with

docket number 79N–0043 only.

Received comments may be seen in the

office above between 9 a.m. and 4 p.m.,

Monday through Friday.

In addition, interested persons may,

on or before August 3, 1996, submit to

the Office of Cosmetics and Colors

(address above) written comments

containing process information relating

to the identity and current use of

substrata (including rosin) in lakes, and

samples of such substrata. Written

comments regarding the use of anions

other than chloride and sulfate in

precipitants may also be submitted to

this address. Two copies of each

comment and one 5-pound sample are

to be submitted, and each submission is

to be identified with the docket number

(79N–0043) found in brackets in the

heading of this document.

Dated: May 29, 1996.

William K. Hubbard,

Associate Commissioner for Policy

Coordination.

[FR Doc. 96–14053 Filed 5–31–96; 12:12 pm]

BILLING CODE 4160–01–F

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010–AC19

Unitization

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Notice of proposed rulemaking.

SUMMARY: MMS proposes to amend its

unitization regulations by removing the

model unit agreements for exploration,

development, and production units and

development and production units. The

model agreements would be available

from the Regional Supervisor. The rule

would also be written in ‘‘plain

English.’’ We take this action to support

the President’s initiative to reform

Government regulations. Our interest is

to shorten the regulation and clarify the

wording.

DATES: MMS will consider all comments

received by August 5, 1996. We will

begin reviewing comments at that time

and may not fully consider comments

we receive after August 5, 1996.

ADDRESSES: Mail or hand-carry written

comments to the Department of the

Interior, Minerals Management Service,

381 Elden Street, Mail Stop 4700,

Herndon, Virginia 22070–4817,

Attention: Chief, Engineering and

Standards Branch.

FOR FURTHER INFORMATION CONTACT:

Judith M. Wilson, Engineering and

Standards Branch, telephone (703) 787–

1600.

SUPPLEMENTARY INFORMATION: The rules

on unitization in 30 CFR part 250,

implementing Section 5(a)7 of the Outer

Continental Shelf (OCS) Lands Act

Amendments of 1978, were published

on May 2, 1980. The rules were

amended on February 16, 1982. The

amended rulemaking removed the

provisions that required segregation of

the portion of the OCS oil and gas lease

not included in the unit agreement. That

amendment was based on the

Department of the Interior (DOI)

Solicitor’s Opinion M–36927. The rules

were amended again in April 1988,

when MMS restructured and

consolidated into one document the

rules governing oil, gas, and sulphur

exploration, development, and

production operations on the OCS. The

model unit agreements were

incorporated at this time. The last

revision was in July 1991, to include

sulphur operations in unitization.

This subpart, 30 CFR part 250,

Subpart M, Unitization, is intended to
28526 Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules

prevent waste, conserve natural

resources (protection of marine life was

incorporated into conservation in 1971),

and/or protect correlative rights. The

rules include provisions to:

• explain the authority and

requirements for unitization;

• provide for compulsory or

voluntary unitization;

• explain requirements for

competitive reservoir operations;

• explain how a lessee may request a

determination of whether a reservoir is

competitive;

• explain how to submit a joint

development and production plan;

• explain the process for voluntary

unitization;

• explain the process for compulsory

unitization; and

• explain the role of a model

agreement.

This proposed rule does not intend

any substantive changes to this

regulation. It would shorten existing

regulations by removing the model unit

agreements. The ‘‘plain English’’ would

clarify the rule.

There are two model unit agreements,

one for exploration, development, and

production units, the other for

development and production units. The

model agreements would continue to be

available from the Regional Supervisor.

The Regional Supervisor could approve

variations from the model agreements

for good cause.

Author: This document was prepared

by Judy Wilson, Engineering and

Standards Branch, Offshore Resource

Evaluation Division, MMS.

Executive Order (E.O.) 12866

This rule does not meet the criteria for

a significant rule requiring review by

the Office of Management and Budget

under E.O. 12866.

Regulatory Flexibility Act

Since this proposed amendment has

no economic effects, DOI has

determined that this proposed rule will

not have a significant effect on a

substantial number of small entities.

Paperwork Reduction Act

This proposed rule contains a

collection of information which has

been submitted to the Office of

Management and Budget (OMB) for

review and approval under section

3507(d) of the Paperwork Reduction Act

of 1995. As part of our continuing effort

to reduce paperwork and respondent

burden, MMS invites the public and

other Federal agencies to comment on

any aspect of the reporting burden.

Submit your comments to the Office of

Information and Regulatory Affairs,

OMB, Attention Desk Officer for the

Department of the Interior (OMB control

number 1010–0068), Washington, DC

20503. Send a copy of your comments

to the Chief, Engineering and Standards

Branch; Mail Stop 4700; Minerals

Management Service; 381 Elden Street;

Herndon, Virginia 22070–4817. You

may obtain a copy of the proposed

collection of information by contacting

the Bureau’s Information Collection

Clearance Officer at (703) 787–1242.

The title of this collection of

information is ‘‘30 CFR 250, Subpart M,

Unitization.’’ OMB previously approved

it under OMB control number 1010–

0068.

The collection of information consists

of a proposed unit agreement; a

proposed initial plan of operation;

supporting geological, geophysical, and

engineering data; and any other

information necessary to show that the

unitization proposal meets the criteria

in § 250.190. If approved, respondents

will submit to MMS a unit agreement,

unit operation agreement, and the initial

plan of operation as the Regional

Supervisor may require.

MMS uses the information to ensure

that operations under the proposed unit

agreement will prevent waste, conserve

natural resources, and protect

correlative rights including the

Government’s interests.

Respondnets are Federal OCS oil, gas,

and sulphur lessees. MMS receives

approximately 53 responses each year.

The frequency of submission varies.

MMS estimates the annual reporting

burden to be approximately 2,424 hours,

an average of 45.7 hours per response.

Based on $35 per hour, the burden hour

cost to respondents is estimated to be

$84,840. The estimate of other annual

costs to respondents is unknown.

MMS will summarize written

responses to this notice and address

them in the final rule. All comments

will become a matter of public record.

1. MMS specifically solicits

comments on the following questions:

(a) Is the proposed collection of

information necessary for the proper

performance of MMS’s functions, and

will it be useful?

(b) Are the estimates of the burden

hours of the proposed collection

reasonable?

(c) Do you have any suggestions that

would enhance the quality, clarity, or

usefulness of the information to be

collected?

(d) Is there a way to minimize the

information collection burden on those

who are to respond, including through

the use of appropriate automated

electronic, mechanical, or other forms of

information technology?

2. In addition, the Paperwork

Reduction Act of 1995 requires agencies

to estimate the total annual cost burden

to respondents or recordkeepers

resulting from the collection of

information. MMS needs your

comments on this item. Your response

should split the cost estimate into two

components:

(a) Total capital and startup cost

component and

(b) Annual operation, maintenance,

and purchase of services component.

Your estimates should consider the

costs to generate, maintain, and disclose

or provide the information. You should

describe the methods you use to

estimate major cost factors, including

system and technology acquisition,

expected useful life of capital

equipment, discount rate(s), and the

period over which you incur costs.

Capital and startup costs include,

among other items, computers and

software you purchase to prepare for

collecting information; monitoring,

sampling, drilling, and testing

equipment; and record storage facilities.

Generally, your estimates should not

include equipment or services

purchased: before October 1, 1995; to

comply with requirements not

associated with the information

collection; for reasons other than to

provide information or keep records for

the Government; or as part of customary

and usual business or private practice.

The Paperwork Reduction Act of 1995

provides that an agency may not

conduct or sponsor, and a person is not

required to respond to, a collection of

information unless it displays a

currently valid OMB control number.

Takings Implication Assessment

The DOI certifies that this rule does

not represent a governmental action

capable of interference with

constitutionally protected property

rights. A Takings Implication

Assessment prepared pursuant to E.O.

12630, Government Action and

Interference with Constitutionally

Protected Property Rights, is not

required.

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. 12988

DOI has certified to OMB that this

proposed rule meets the applicable civil

justice reform standards provided in

Sections 3(b)(2) of E.O. 12988.
Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules 28527

National Environmental Policy Act

MMS has examined the proposed

rulemaking and has determined that this

rule does not constitute a major Federal

action significantly affecting the quality

of the human environment pursuant to

Section 102(2)(c) of the National

Environmental Policy Act of 1969 (42

U.S.C. 4332(2)(c)).

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.

Bob Armstrong,

Assistant Secretary, Land and Minerals

Management.

For the reasons set forth in the

preamble, the Minerals Management

Service proposes to amend 30 CFR part

250 as follows:

PART 250—SUBPART M—

UNITIZATION

1. The authority citation for part 250

continues to read as follows:

Authority: 43 U.S.C. 1334.

2. Subpart M is revised to read as

follows:

Subpart M—Unitization

Sec.

250.190 What is the purpose of this

subpart?

250.191 What are the requirements for

unitization?

250.192 What if I have a competitive

reservoir on my lease?

250.193 How do I get approval for

voluntary unitization?

250.194 How will MMS require unitization?

Subpart M—Unitization

§ 250.190 What is the purpose of this

subpart?

This subpart explains how Outer

Continental Shelf (OCS) leases are

unitized. If you are an OCS lessee, use

the regulations in this subpart for both

voluntary and required unitization

situations. The purpose of unitization is

to:

(a) Conserve natural resources;

(b) Prevent waste; and/or

(c) Protect correlative rights,

including Federal royalty interests.

§ 250.191 What are the requirements for

unitization?

(a) Voluntary unitization. You and

other OCS lessees may ask the Regional

Supervisor to approve a request for

voluntary unitization. The Regional

Supervisor may approve the request for

voluntary unitization if unitized

operations:

(1) Will promote and expedite lease

exploration and development; or

(2) Are necessary to prevent waste,

conserve natural resources, or protect

correlative rights, including Federal

royalty interests, of a reasonably

delineated and productive reservoir.

(b) Compuslory unitization. The

Regional Supervisor may require you

and other lessees to unitize operations

if unitized operations are necessary to

prevent waste, conserve natural

resources, or protect correlative rights of

a reasonably delineated and productive

reservoir.

(c) Unit area. The area that a unit

includes is the minimum number of

leases that will allow the lessees to

minimize the number of platforms,

facility installations, and wells

necessary for efficient exploration,

development, and production. A unit

may include whole leases of portions of

leases.

(d) Unit agreement. You and the other

lessees of the leases in the unit must

enter into a unit agreement that

allocates benefits to unitized leases. The

unit agreement must designate a unit

operator and specify the effective date of

the unit agreement. A unit agreement of

terminates when the unit no longer

produces unitized substances and the

unit operator no longer conducts

drilling or well-workover operations

under the unit agreement, unless the

Director orders or approves a

suspension of production under

§ 250.10.

(e) Unit operating agreement. The unit

operator and the owners of working

interests in the unitized leases must

enter into a unit operating agreement.

The unit operating agreements must

describe how all the unit participants

will apportion all costs and liabilities

incurred maintaining or conducting

operations. When a unit involves one or

more net-profit-share leases, the unit

operating agreement must describe how

to attribute costs and credits to the netprofit-share lease(s).

(f) Termination or adjustment of a

unit agreement. If your unit agreement

expires or terminates, or if MMS adjusts

the unit area to exclude your lease from

the unit, your lease expires unless:

(1) Its initial term has not expired;

(2) You conduct drilling, production,

or well-reworking operations on your

lease consistent with applicable

regulations; or

(3) MMS orders or approves a

suspension of production or operations

for your lease.

(g) Unit operations. If your lease is

subject to a unit agreement, the entire

lease continues for the term provided in

the lease and as long thereafter as any

portion of your lease remains part of the

unit area, and as long as operations

continue the unit in effect.

(1) Drilling, production, and wellreworking operations performed on any

lease in accordance with the unit

agreement benefit all leases in the unit.

If your unit ceases drilling activities for

a period between the discovery and

delineation of one or more reservoirs

and the initiation of actual development

and production operations and that time

period would extend beyond your

lease’s primary term, you must request

and obtain MMS approval of a

suspension of production under

§ 250.10.

(2) When a lease in a unit agreement

is beyond the primary term and the

lease or unit is not producing, the lease

will expire unless:

(i) You conduct a continuous drilling

or well reworking program designed to

develop or restore the lease or unit

production; or

(ii) MMS orders or approves a

suspension of operations under

§ 250.10.

§ 250.192 What if I have a competitive

reservoir on my lease?

(a) The Regional Supervisor may

require you to conduct development

and production operations in a

competitive reservoir under either a

voluntary joint Development and

Production Plan or a unitization

agreement. A competitive reservoir has

one or more producing or producible

well completions on each of two or

more leases, or portions, with different

owners. For purposes of this paragraph,

a producible well completion is a well

which is capable of production and

which is shut in but not necessarily

connected to production facilities, and

from which the operator plans future

production.

(b) You may request that the Regional

Supervisor make a preliminary

determination whether a reservoir is

competitive. When you receive the

preliminary determination, you have 30

days (or longer if the Regional

Supervisor allows additional time) to

concur or to submit an objection with

supporting evidence if you do not

concur. The Regional Supervisor will

make a final determination and notify

you.
28528 Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules

(c) If you conduct drilling or

production operations in a competitive

reservoir, you and the other affected

lessees must submit for approval a joint

plan of operations. You must submit the

joint plan within 90 days after the

Regional Supervisor makes a final

determination that the reservoir is

competitive. The joint plan must

provide for the development and/or

production of the reservoir. You may

submit supplemental plans for the

Regional Supervisor’s approval.

(d) If you and the other affected

lessees cannot reach an agreement on a

joint Development and Production Plan

within the approved period of time,

each lessee must submit a separate plan

to the Regional Supervisor. The

Regional Supervisor may hold a hearing

to resolve differences in the separate

plans. If the differences in the separate

plans are not resolved at the hearing and

the Regional Supervisor determines that

unitization is necessary under

§ 250.191(b), MMS will initiate

unitization under § 250.194.

§ 250.193 How do I get approval for

voluntary unitization?

(a) You must file a request with the

Regional Supervisor for approval of a

unit. Your request must include:

(1) A draft of the proposed unit

agreement;

(2) A proposed initial plan of

operation;

(3) Supporting geological,

geophysical, and engineering data; and

(4) Other information that may be

necessary to show that the unitization

proposal meets the criteria of § 250.190.

(b) The unit agreement must comply

with the requirements of this part. MMS

will provide a model unit agreement for

you to follow. If you make changes to

the model agreement, you must obtain

the approval of the Regional Supervisor.

(c) After the Regional Supervisor

approves your unitization proposal, you

and the unit operator must sign it and

file copies of the unit agreement, the

unit operating agreement, and the plan

of operation with the Regional

Supervisor.

§ 250.194 How will MMS require

unitization?

(a) If the Regional Supervisor

determines that unitization of

operations within a proposed unit area

is necessary to prevent waste, conserve

natural resources of the OCS, or protect

correlative rights, including Federal

royalty interests, the Regional

Supervisor may order unitization

according to a plan for unitization. This

plan will conform to the model unit

agreement available from the Regional

Supervisor unless the Regional

Supervisor approves a variation.

(b) If you ask MMS to compel

unitization, you must file a request with

the Regional Supervisor. Include a

proposed unit agreement as described in

§ 250.192(b), a proposed unit operating

agreement, and a proposed initial plan

of operation together with supporting

geological, geophysical, and engineering

data, and any other information that

may be necessary to show that

unitization meets the criteria of

§ 250.190. The proposed unit agreement

must include a counterpart executed by

each lessee seeking compulsory

unitization. Lessees seeking compulsory

unitization must simultaneously serve,

on the non-consenting lessees, copies of:

(1) The request;

(2) The proposed unit agreement with

executed counterparts;

(3) The proposed unit operating

agreement; and

(4) The proposed initial plan of

operation.

(c) If the Regional Supervisor initiates

compulsory unitization, MMS will serve

all lessees of the proposed unit area

with a copy of the plan for unitization

and a statement of reasons for the

proposed unitization.

(d) The Regional Supervisor will not

compel unitization until MMS provides

all lessees of the proposed unit area

written notice and an opportunity for a

hearing. If you want MMS to hold a

hearing, you must request it within 30

days after you receive written notice

from the Regional Supervisor or after

you are served with a request for

compulsory unitization from anther

lessee.

(e) MMS will not hold a hearing

under this paragraph until at least 30

days after MMS provides written notice

of the hearing date to all parties owning

interests which would be made subject

to the unit agreement. The Regional

Supervisor must give all lessees of the

proposed unit area an opportunity to

submit views orally or in writing and to

question both those seeking and those

opposing compulsory unitization.

Adjudicatory procedures are not

required. The Regional Supervisor will

make a decision based upon a record of

the hearing, including any written

information made a part of the record.

The Regional Supervisor will arrange for

a court reporter to make a verbatim

transcript. The party seeking

compulsory unitization must pay for the

court reporter and pay for and provide

to the Regional Supervisor within 10

days after the hearing three copies of the

verbatim transcript, made by a court

reporter.

(f) The Regional Supervisor will issue

an order that requires or rejects

compulsory unitization. That order

must include a statement of reasons for

the action taken including identification

of those parts of the record which form

the basis of the decision. Any party may

appeal the final order of the Regional

Supervisor under 30 CFR part 290.

[FR Doc. 96–13990 Filed 6–4–96; 8:45 am]

BILLING CODE 4310–MR–M

30 CFR Part 256

RIN 1010–AC15

Drilling Requirements for Outer

Continental Shelf Leases

AGENCY: Minerals Management Service,

Interior.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Minerals Management

Service (MMS) proposes to amend its

lease term regulations to remove the

requirement that all lessees begin an

exploratory well within the first 5 years

of the primary term for new 8-year

leases on the Outer Continental Shelf

(OCS). MMS is proposing this change

because recently enacted legislation

provides more effective incentives to

expedite lease development. A drilling

requirement would apply when MMS

stipulates a drilling requirement in the

notice of sale.

DATES: MMS will consider all comments

received by August 5, 1996. We will

begin reviewing comments at that time

and may not fully consider comments

we receive after August 5, 1996.

ADDRESSES: Mail or hand-carry written

comments to the Department of the

Interior; Minerals Management Service;

381 Elden Street; Mail Stop 4700;

Herndon, Virginia 22070–4817;

Attention: Chief, Engineering and

Standards Branch.

FOR FURTHER INFORMATION CONTACT:

Judith M. Wilson, Engineering and

Standards Branch, telephone (703) 787–

1600.

SUPPLEMENTARY INFORMATION: Section

8(b) of the Outer Continental Shelf

Lands Act (OCSLA), 43 U.S.C. 1331 et

seq., as amended, 92 Stat. 629, states

that an oil and gas lease is issued ‘‘for

an initial period of five years; or not to

exceed ten years where the Secretary

finds that such longer period is

necessary to encourage exploration and

development in areas because of

unusually deep water * * *.’’

Currently, MMS offers 10-year terms for

leases in water depths of 900 meters or

more. In water depths of 400 to 900

meters, MMS offers 8-year lease terms