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
Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules 28529

subject to a requirement that the lessee

begin an exploratory well within the

first 5 years, 30 CFR 256.37.

The OCSLA requires a lessee to be

diligent in exploring and developing a

lease. If production begins within the

primary term, then the lease continues

for as long as production continues, 30

CFR 256.37(b). However, 5 years may

not be adequate time in which to begin

exploratory drilling even for a diligent

lessee. Because of unusual

circumstances such as deep water, the

lessee risks losing a lease through no

fault of its own.

Due to the number of changes facing

the oil and gas leasing program—such as

lower oil prices, technological advances,

subsalt discoveries and expansion to

deeper waters—MMS initiated a review

of OCS leasing policy several years ago.

MMS found that the requirement that 8-

year leases be drilled by the end of the

fifth year did not result in meaningful

increases in drilling. Most of the offered

tracts were relinquished at the end of

the fifth year. In particular, between

1985 and 1992, 421 tracts were leased

for 8-year terms. Only 29 of the 421

leases had been drilled. Of those 29

leases, only 18 were still active by the

end of 1993.

With the enactment of the OCS Deep

Water Royalty Relief Act (DWRRA), P.L.

104–58, new deepwater leases are

offered for sale with available royalty

volume suspensions. Royalty volume

suspensions are available for new fields

in at least 200 meters of water and lying

west of 87 degrees, 30 minutes West

longitude. Royalty payments on

volumes of production are suspended

for at least the first 17.5 million barrels

of oil equivalent (mmboe) in 200 to 400

meters of water; 52.5 mmboe in 400 to

800 meters; and 87.5 mmboe in more

than 800 meters of water. MMS views

this significant financial incentive as

more effective than the drilling

requirement as a means of achieving

earlier drilling. In addition, the rental

rates for all leases lying in waters deeper

than 200 meters may be increased (e.g.,

they were increased from $5.00 to

$7.50/acre in Sale 157) to encourage

earlier drilling.

Therefore, MMS proposes to amend

its regulation at 30 CFR 256.37 to

remove the requirement that the lessee

must begin drilling within 5 years on 8-

year leases issued on or after the date

this rule becomes final. The amendment

would also change the 400 to 900 meter

depth requirement for 8-year leases to

400 to 800 meters to be consistent with

the DWRRA.

Author: This document was prepared by

Judy Wilson, Engineering and Standards

Branch, and Mary Vavrina, Offshore

Resource Evaluation Division, MMS.

Executive Order (E.O.) 12866

This rule is not a significant rule

requiring Office of Management and

Budget review under E.O. 12866.

Regulatory Flexibility Act

The Department of the Interior (DOI)

has 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 necessary 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 rules governing OCS operations,

we are not changing the rules that

govern the actual operations of a lease.

We are only proposing to modify the

rules that govern the length of time

required for drilling an exploratory well.

The rule could have a positive

secondary effect. By extending the time

available to begin drilling an

exploratory well in unusual

circumstances, more leases may be

active and this could result in an

increase in opportunities for small

entities to perform services. The added

time could also work to benefit small

companies who have slower computers

and could benefit from a longer period

of time to review data.

Paperwork Reduction Act

The proposed rule does not contain

new information collection

requirements that require approval by

the Office of Management and Budget

(OMB). The information collection

requirements in 30 CFR part 256 are

approved by OMB under approval No.

1010–0006.

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

The 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.

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 256

Administrative practice and

procedures, Continental shelf,

Environmental Protection, Government

contracts, Mineral royalties, Oil and gas

exploration, Pipelines, Public lands—

mineral resources, Public lands—rightsof-way, Reporting and recordkeeping

requirements, 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 parts

256 as follows:

PART 256–LEASING OF SULPHUR OR

OIL OR GAS IN THE OUTER

CONTINENTAL SHELF

1. The authority citation for part 256

continues to read as follows:

Authority: 43 U.S.C. 1331 et seq.

2. In § 256.37, paragraph (a)(2) is

revised to read as follows:

§ 256.37 Lease term.

(a)(1) * * *

(2) If your oil and gas lease is in water

depths of 400 meters or more, it will

have an initial lease term of at least 8

years but not more than 10 years. The

initial term for each lease will be stated

in the Final Notice of Sale.

(i) For leases issued before [the

effective date of the final rule], you must

commence an exploratory well within

the first 5 years of the initial 8-year term

or MMS will cancel the lease.

(ii) For leases issued on or after [the

effective date of the final rule], MMS

will incorporate into the lease terms by
28530 Federal Register / Vol. 61, No. 109 / Wednesday, June 5, 1996 / Proposed Rules

lease stipulation any drilling

requirements.

* * * * *

[FR Doc. 96–13989 Filed 6–4–96; 8:45 am]

BILLING CODE 4310–MR–M

National Park Service

36 CFR Part 7

RIN 1024–AC45

Big Thicket National Preserve, Moored

Houseboats

AGENCY: National Park Service, Interior.

ACTION: Proposed rule.

SUMMARY: The National Park Service

(NPS) is proposing regulations that will

require all houseboat owners to register

their houseboats at the Office of the

Superintendent of the Preserve to

adhere to regulations pertaining

specifically to moored houseboats

within the boundaries of the Preserve.

This rulemaking will also include

regulations pertaining to sanitation and

refuse (trash removal), fire extinguishers

and personal flotation devices on board

houseboats. The addition of the

proposed regulations will allow the NPS

to identify each houseboat owner in the

event emergency notification is needed

while the houseboat is vacant. The

regulations will also assist the park in

monitoring recreational activities

directly related to houseboats. These

regulations will enhance protection of

the resources in the Preserve while

providing improved visitor protection

services by park personnel.

DATES: Written comments will be

accepted through August 5, 1996.

ADDRESSES: Comments should be

addressed to: Superintendent, Big

Thicket National Preserve, 3785 Milam,

Beaumont, Texas 77701.

FOR FURTHER INFORMATION CONTACT:

Robert D. Appling, Chief Ranger Big

Thicket National Preserve, Telephone

409–839–2689.

SUPPLEMENTARY INFORMATION:

Background

Houseboats have been moored on the

Neches River and its tributaries since

before Big Thicket National Preserve

was established. The mooring of

houseboats within the Preserve is

considered a traditional use and should

be allowed to continue. Houseboat

owners are primarily local residents of

the Southeast Texas area.

Houseboat owners and the

recreational activities associated with

these moored houseboats have been

mostly unregulated since the Preserve

was established in 1974 (16 U.S.C. 698).

Activities associated with houseboats

have led to the degradation of Preserve

resources in a variety of ways, including

the poaching of fish and game, damage

to and removal of vegetation to establish

egress routes, concentrated human use

impacts, stream bank erosion and the

prohibited discharge of sewage, animal

and fish remains, and other aquatic

pollutants.

Houseboats have been left unattended

for long periods of time and many are

utilized only during the approved

hunting season. Attempts by Preserve

personnel to contact houseboat owners

to inform them of damage to their

property or to advise them of violations

of regulations have proven to be

extremely difficult. Many houseboat

owners do not have telephones and the

park does not have permanent addresses

where the owners can be contacted.

The NPS believes that the addition of

these regulations will provide for better

management of the land and water

resources of the Preserve and improve

overall communications with houseboat

owners by providing accurate and

updated information concerning

hunting, fishing, boating and water use

activities.

Public Participation

It is the policy of the Department of

Interior, whenever practicable, to afford

the public an opportunity to participate

in the rulemaking process. Accordingly,

interested persons may submit written

comments regarding this proposed rule

to the address noted at the beginning of

this rulemaking. Big Thicket National

Preserve will also publish public notices

in local papers informing the general

public of the proposed rule. The NPS

will review comments and consider

making changes to the final rule based

upon an analysis of the comments.

Drafting Information. The primary authors

of this proposed rule are Robert D. Appling,

Chief Ranger and Richard F. Strahan, Chief,

Division of Resource Management, and

Dennis Burnett, Washington Office of Ranger

Activities, National Park Service.

Paperwork Reduction Act

This proposed rule does not contain

collections of information requiring

approval by the Office of Management

and Budget under the Paperwork

Reduction Act of 1995.

Compliance With Other Laws

This rule was not subject to Office of

Management and Budget review under

Executive Order 12866. The Department

of the Interior determined that this

document will not have a significant

economic effect on a substantial number

of small entities under the Regulatory

Flexibility Act (5 USC 601 et seq.). The

economic effects of this rulemaking are

local in nature and negligible in scope.

The NPS has determined that this

proposed rulemaking will not have a

significant effect on the quality of the

human environment, health and safety

because it is not expected to:

(a) Increase public use to the extent of

compromising the nature and character

of the area or causing physical damage

to it;

(b) Introduce incompatible uses

which compromise the nature and

character of the area or causing physical

damage to it;

(c) Conflict with adjacent ownerships

or land uses; or

(d) Cause a nuisance to adjacent

owners or occupants.

Based on this determination, the

regulation is categorically excluded

from the procedural requirements of the

National Environmental Policy Act

(NEPA) by Departmental guidelines in

516 DM 6 (49 FR 21438). As such,

neither an Environmental Assessment

(EA) nor an Environmental Impact

Statement (EIS) has been prepared.

List of Subjects in 36 CFR Part 7

National parks, Reporting and

recordkeeping requirements.

In consideration of the foregoing, it is

proposed to amend 36 CFR Chapter I as

follows:

PART 7—SPECIAL REGULATIONS,

AREAS OF THE NATIONAL PARK

SYSTEM

1. The authority citation continues to

read as follows:

Authority: 16 U.S.C. 1, 3, 9a, 460(q),

462(k); Sec. 7.96 also issued under D.C. Code

8–137 (1981) and D.C. Code 40–721 (1981).

2. Section 7.85 is amended by adding

new paragraph (e) to read as follows:

§ 7.85 Big Thicket National Preserve.

* * * * *

(e) Moored houseboats. Except as

otherwise provided, the following

regulations will be applicable:

(1) All houseboats moored on

waterways within the boundaries of Big

Thicket National Preserve are required

to be registered with the Office of the

Superintendent, Big Thicket National

Preserve. Houseboats will be assigned a

number and a decal at the beginning of

each calendar year. It is further required

that written notification will be given to

the Office of the Superintendent prior to

relocation of a houseboat from its

registered location.

(2) Houseboats will be located a

minimum distance of one-half mile from

other houseboats.