This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

28636 

Vol. 74, No. 115 

Wednesday, June 17, 2009 

1See Division A, titled the ‘‘Federal Housing 

Finance Regulatory Reform Act of 2008,’’ Title I, 

Section 1101 of HERA. 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Part 1233 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

Office of Federal Housing Enterprise 

Oversight 

12 CFR 1731 

RIN 2590–AA11 

Reporting of Fraudulent Financial 

Instruments 

AGENCY: Federal Housing Finance 

Agency; Office of Federal Housing 

Enterprise Oversight. 

ACTION: Notice of proposed rulemaking; 

request for comments. 

SUMMARY: The Federal Housing Finance 

Agency (FHFA) is issuing a proposed 

regulation that would require the 

Federal National Mortgage Association, 

the Federal Home Loan Mortgage 

Corporation, the Federal Home Loan 

Banks (regulated entities) to report to 

FHFA any fraudulent financial 

instruments that they purchased or sold. 

The proposed regulation would also 

require the regulated entities to 

establish and maintain internal controls, 

procedures, and training programs to 

ensure that any such fraudulent 

instruments are detected and reported. 

DATES: Written comments on the 

proposed regulation must be received 

on or before August 17, 2009. For 

additional information, see 

SUPPLEMENTARY INFORMATION. 

ADDRESSES: You may submit your 

comments on the proposed regulation, 

identified by regulatory information 

number (RIN) 2590–AA11, by any of the 

following methods: 

• U.S. Mail, United Parcel Service, 

Federal Express, or Other Mail Service: 

The mailing address for comments is: 

Alfred M. Pollard, General Counsel, 

Attention: Comments/RIN 2590–AA11, 

Federal Housing Finance Agency, 

Fourth Floor, 1700 G Street, NW., 

Washington, DC 20552. 

• Hand Delivered/Courier: The hand 

delivery address is: Alfred M. Pollard, 

General Counsel, Attention: Comments/ 

RIN 2590–AA11, Federal Housing 

Finance Agency, Fourth Floor, 1700 G 

Street, NW., Washington, DC 20552. The 

package should be logged at the Guard 

Desk, First Floor, on business days 

between 9 a.m. and 5 p.m. 

• E-mail: Comments to Alfred M. 

Pollard, General Counsel, may be sent 

by e-mail to RegComments@fhfa.gov. 

Please include ‘‘RIN 2590–AA11’’ in the 

subject line of the message. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. If 

you submit your comment to the 

Federal eRulemaking Portal, please also 

send it by e-mail to FHFA at 

RegComments@fhfa.gov to ensure 

timely receipt by the agency. Please 

include ‘‘RIN 2590–AA11’’ in the 

subject line of the message. 

FOR FURTHER INFORMATION CONTACT: 

Andra Grossman, Counsel, telephone 

(202) 343–1313 (not a toll-free number), 

Federal Housing Finance Agency, 

Fourth Floor, 1700 G Street, NW., 

Washington, DC 20552. The telephone 

number for the Telecommunications 

Device for the Deaf is (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

I. Comments 

FHFA invites comments on all aspects 

of the proposed regulation and will take 

all comments into consideration before 

issuing the final regulation. Copies of all 

comments will be posted without 

change, including any personal 

information you provide, such as your 

name and address, on the FHFA Web 

site at http://www.fhfa.gov. In addition, 

copies of all comments received will be 

available for examination by the public 

on business days between the hours of 

10 a.m. and 3 p.m., at the Federal 

Housing Finance Agency, Fourth Floor, 

1700 G Street, NW., Washington, DC 

20552. To make an appointment to 

inspect comments, please call the Office 

of General Counsel at (202) 414–6924. 

II. Background 

The Housing and Economic Recovery 

Act of 2008 (HERA), Public Law 110– 

289, 122 Stat. 2654 (2008), amended the 

Federal Housing Enterprises Financial 

Safety and Soundness Act of 1992 (12 

U.S.C. 4501 et seq.) (Safety and 

Soundness Act) to establish FHFA as an 

independent agency of the Federal 

Government.1 FHFA was established to 

oversee the prudential operations of the 

Federal National Mortgage Association, 

the Federal Home Loan Mortgage 

Corporation (collectively, Enterprises), 

the Federal Home Loan Banks (Banks) 

(collectively, regulated entities) and to 

ensure that they operate in a safe and 

sound manner; remain adequately 

capitalized; foster liquid, efficient, 

competitive and resilient national 

housing finance markets; comply with 

the Safety and Soundness Act and their 

respective authorizing statutes, as well 

as all rules, regulations, guidelines, and 

orders, issued thereunder; and carry out 

their missions through activities that are 

authorized by the above-cited statutes 

and are consistent with the public 

interest. 

The Office of Federal Housing 

Enterprise Oversight (OFHEO) and the 

Federal Housing Finance Board (FHFB) 

will be abolished one year after 

enactment of HERA. However, the 

regulated entities continue to operate 

under regulations promulgated by 

OFHEO and FHFB until such 

regulations are supplanted by 

regulations promulgated by FHFA. 

In 2005, OFHEO issued a regulation 

requiring the Enterprises to report 

mortgage fraud and to establish internal 

controls, procedures, and training 

programs to ensure that mortgage fraud 

is detected and prevented. As part of 

this rulemaking, that regulation, 12 CFR 

part 1731, ‘‘Mortgage Fraud Reporting,’’ 

would be removed when this regulation 

becomes effective. 

III. Proposed Regulation 

Section 1379E of the Safety and 

Soundness Act (12 U.S.C. 4642(a)), 

subjects the regulated entities to both a 

reporting and an internal controls 

requirement. Under this statutory 

provision, the Director must require a 

regulated entity to submit a timely 

report upon discovery that it has 

purchased or sold a fraudulent loan or 

financial instrument, or suspects a 

possible fraud relating to the purchase 

or sale of any loan or financial 

instrument. In addition, the Director 

must require each regulated entity to 


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Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules 28637 

establish and maintain procedures 

designed to discover any such 

transactions. 

Section 1379E of the Safety and 

Soundness Act (12 U.S.C. 4642(b)) also 

provides each regulated entity, and any 

entity-affiliated party, protection from 

liability in making a report, or requiring 

another to make any report, if it acts in 

good faith. This protection extends to 

any liability arising under any provision 

of law or regulation, any constitution, 

law, or regulation of any State or 

political subdivision of any State, or 

under any contract or other legally 

enforceable agreement (including any 

arbitration agreement) for the 

submission of any report or for any 

failure to notify persons who are the 

subject of, or who are identified in, the 

report. 

In addition, Congress has continued 

to emphasize combating mortgage fraud 

as a key element in stabilizing mortgage 

markets and protecting homeowners 

and investors. The recently enacted 

Fraud Enforcement and Recovery Act of 

2009, Public Law 111–21 (2009), 

provides new funding for anti-fraud 

efforts, enhances federal penalties and 

includes a review of the current 

financial and economic crisis. 

Section 1313(f) of the Safety and 

Soundness Act (12 U.S.C. 4513(f)), 

requires the Director, when 

promulgating regulations relating to the 

Banks, to consider the differences 

between the Banks and the Enterprises 

with respect to the Banks’ cooperative 

ownership structure, liquidity mission, 

affordable housing and community 

development mission, capital structure, 

and joint and several liability. The 

Director may also consider any other 

differences that are deemed appropriate. 

The purpose of this proposed rule is to 

implement statutory provisions that 

address possible risks to the regulated 

entities associated with fraudulent loans 

or other instruments. Although the 

respective businesses in which the 

Banks and the Enterprises are engaged 

differ, all of them are involved to some 

degree in providing financing to the 

residential mortgage market and thus 

may be exposed to the risk of fraud, 

particularly when investing in whole 

mortgage loans. In preparing the 

proposed regulation, the Director 

considered the differences between the 

Banks and the Enterprises as they relate 

to the above factors. The Director 

believes that none of the unique factors 

relating to the Banks warrants 

establishing different treatment under 

the proposed regulation. However, 

detailed guidance may be issued that 

would address specific business or 

operational differences with respect to 

the regulated entities. Nonetheless, the 

Director requests comments about 

whether it would be appropriate to 

include in a final rule any provisions 

relating to the differences between the 

Banks and the Enterprises. 

IV. Section-by-Section Analysis 

Section 1233.1 Purpose 

This section as proposed would 

require each regulated entity to report to 

FHFA the discovery of fraud or possible 

fraud, in connection with a loan or other 

financial instrument that it has 

purchased or sold, and to establish 

internal controls, procedures, and 

training programs to detect and report 

such fraud. 

Section 1233.2 Definitions 

This section provides definitions for 

the terms contained in the proposed 

regulation. 

Bank or Federal Home Loan Bank 

would be defined as a Bank established 

under the Federal Home Loan Bank Act; 

the term ‘‘Federal Home Loan Banks’’ 

means, collectively, all the Federal 

Home Loan Banks. 

Director would be defined as the 

Director of FHFA or his or her designee. 

Enterprise would be defined as the 

Federal National Mortgage Association, 

the Federal Home Loan Mortgage 

Corporation (collectively, Enterprises), 

and any affiliate thereof. 

Entity-affiliated party would be 

defined as— 

• Any director, officer, employee, or 

controlling stockholder of, or agent for, 

a regulated entity; 

• Any shareholder, affiliate, 

consultant, or joint venture partner of a 

regulated entity, and any other person, 

as determined by the Director (by 

regulation or on a case-by-case basis) 

that participates in the conduct of the 

affairs of a regulated entity, provided 

that a member of a Federal Home Loan 

Bank shall not be deemed to have 

participated in the affairs of that Federal 

Home Loan Bank solely by virtue of 

being a shareholder of, and obtaining 

advances from, that Federal Home Loan 

Bank; 

• Any independent contractor for a 

regulated entity (including any attorney, 

appraiser, or accountant), if: 

Æ The independent contractor 

knowingly or recklessly participates 

in— 

—Any violation of any law or 

regulation; 

—Any breach of fiduciary duty; or 

—Any unsafe or unsound practice; and 

Æ Such violation, breach, or practice 

caused, or is likely to cause, more than 

a minimal financial loss to, or a 

significant adverse effect on, the 

regulated entity; 

• Any not-for-profit corporation that 

receives its principal funding, on an 

ongoing basis, from any regulated entity; 

and 

• The Office of Finance. 

Fraud would be defined as a material 

misstatement, misrepresentation, or 

omission relied upon by a regulated 

entity. 

Possible fraud would be defined as a 

situation that a regulated entity has a 

reasonable belief, based upon a review 

of information available to the regulated 

entity, that fraud may be occurring or 

has occurred. 

Regulated entity would be defined as 

the Federal National Mortgage 

Association and any affiliate thereof, the 

Federal Home Loan Mortgage 

Corporation and any affiliate thereof, 

and any Federal Home Loan Bank; the 

term ‘‘regulated entities’’ means, 

collectively, the Federal National 

Mortgage Association and any affiliate 

thereof, the Federal Home Loan 

Mortgage Corporation and any affiliate 

thereof, and the Federal Home Loan 

Banks. 

Safety and Soundness Act would be 

defined as the Federal Housing 

Enterprises Financial Safety and 

Soundness Act of 1992, as amended by 

the Federal Housing Finance Regulatory 

Reform Act of 2008, Division A of the 

Housing and Economic Recovery Act of 

2008, Public Law 110–289, 122 Stat. 

2654 (2008). 

Section 1233.3 Reporting 

This section as proposed sets forth the 

procedures for reporting fraud and 

possible fraud to FHFA, and requires a 

regulated entity to report promptly any 

fraud or possible fraud in writing to the 

Director. This section also provides that 

if the situation requires the immediate 

attention of FHFA, a regulated entity 

must report the matter to FHFA 

immediately by telephone or electronic 

communication. FHFA expects that it 

would issue guidance and instructions 

with respect to the format and content 

of fraud reports. This proposed section 

would allow the regulated entities to 

use fraud-reporting formats used by 

other agencies with jurisdiction over 

such fraud, but only upon receipt of 

written notice from the Director. For 

instance, under the Bank Secrecy Act of 

1970, banking regulatory agencies 

require the completion and submission 

of Suspicious Activity Reports to the 

United States Department of the 

Treasury Financial Crimes Enforcement 

Network. The section as proposed 

would further provide for retention of 

records by a regulated entity and would 


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28638 Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules 

prohibit the disclosure of reporting 

fraud or possible fraud to the parties 

connected with such fraud without the 

prior written approval of the Director. 

This requirement would not prevent a 

regulated entity from disclosing or 

reporting such fraud pursuant to legal 

requirements, including disclosure to 

appropriate law enforcement 

authorities. Finally, this section 

reiterates a statutory provision that 

makes clear that a regulated entity does 

not waive any privilege it may 

otherwise possess as a result of 

reporting fraud or possible fraud to 

FHFA under these provisions. 

Section 1233.4 Internal Controls, 

Procedures and Training 

This section as proposed would 

require each regulated entity to establish 

adequate and efficient internal controls 

and procedures, as well as an 

operational training program, to assure 

that it has in place an effective system 

to detect and report any fraud. 

Section 1233.5 Protection From 

Liability for Reports 

This section as proposed would 

provide that a regulated entity and any 

entity-affiliated party that submits a 

report pursuant to this part, in good 

faith (or requires another person to 

submit such a report), cannot be held 

liable either for submitting the report, or 

for failing to notify any person who is 

the subject of such report, or is 

identified in the report. 

Section 1233.6 Supervisory Action 

This section as proposed would 

address that failure to comply with the 

requirements of the final regulation may 

subject a regulated entity or its board 

members, officers, or employees to 

supervisory action by FHFA under the 

Safety and Soundness Act, including 

but not limited to, cease-and-desist 

proceedings and civil money penalties. 

Regulatory Impact 

Paperwork Reduction Act 

As the proposed regulation pertains to 

the regulated entities, it does not 

contain any information collection 

requirement that requires the approval 

of the Office of Management and Budget 

under the Paperwork Reduction Act (44 

U.S.C. 3501 et seq.). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) requires that a 

regulation that has a significant 

economic impact on a substantial 

number of small entities, small 

businesses, or small organizations must 

include an initial regulatory flexibility 

analysis describing the regulation’s 

impact on small entities. Such an 

analysis need not be undertaken if the 

agency has certified that the regulation 

will not have a significant economic 

impact on a substantial number of small 

entities. 5 U.S.C. 605(b). In this case, the 

proposed regulation would apply only 

to the regulated entities, none of which 

are small entities for purposes of this 

requirement. Accordingly, FHFA hereby 

certifies that the proposed regulation is 

not likely to have a significant economic 

impact on a substantial number of small 

business entities for purposes of the 

Regulatory Flexibility Act. 

List of Subjects 

12 CFR Part 1233 

Administrative practice and 

procedure, Federal home loan banks, 

Government-sponsored enterprises, 

Mortgages, Reporting and recordkeeping 

requirements. 

12 CFR Part 1731 

Administrative practice and 

procedure, Government-sponsored 

enterprises. 

Authority and Issuance 

Accordingly, for the reasons stated in 

the preamble, under the authority of 12 

U.S.C. 4514, 4526, and 4642, the Federal 

Housing Finance Agency proposes to 

amend chapters XII and XVII of Title 12, 

Code of Federal Regulations, as follows: 

CHAPTER XII—FEDERAL HOUSING 

FINANCE AGENCY 

Subchapter B—Entity Regulations 

1. Add part 1233 to subchapter B to 

read as follows: 

PART 1233—REPORTING OF 

FRAUDULENT FINANCIAL 

INSTRUMENTS 

Subpart A—General 

Sec. 

1233.1 Purpose. 

1233.2 Definitions. 

1233.3 Reporting. 

1233.4 Internal controls, procedures, and 

training. 

1233.5 Protection from liability for reports. 

1233.6 Supervisory action. 

Authority: 12 U.S.C. 4514, 4526, 4642. 

Subpart A—General 

§ 1233.1 Purpose. 

The purpose of this part is to 

implement section 1379E of the Safety 

and Soundness Act (12 U.S.C. 4642) by 

requiring each regulated entity to report 

to FHFA any known or possible fraud in 

connection with a loan or other 

financial instrument that it has 

purchased or sold, and by requiring 

each regulated entity to establish 

internal controls, procedures, and 

training programs designed to detect 

and report such fraud. 

§ 1233.2 Definitions. 

The following definitions apply to the 

terms used in this part: 

Bank or Federal Home Loan Bank 

means a Bank established under the 

Federal Home Loan Bank Act; the term 

‘‘Federal Home Loan Banks’’ means, 

collectively, all the Federal Home Loan 

Banks. 

Director means the Director of FHFA 

or his or her designee. 

Enterprise means the Federal National 

Mortgage Association, the Federal Home 

Loan Mortgage Corporation 

(collectively, Enterprises), and any 

affiliate thereof. 

Entity-affiliated party means— 

(1) Any director, officer, employee, or 

controlling stockholder of, or agent for, 

a regulated entity; 

(2) Any shareholder, affiliate, 

consultant, or joint venture partner of a 

regulated entity, and any other person, 

as determined by the Director (by 

regulation or on a case-by-case basis) 

that participates in the conduct of the 

affairs of a regulated entity, provided 

that a member of a Federal Home Loan 

Bank shall not be deemed to have 

participated in the affairs of that Federal 

Home Loan Bank solely by virtue of 

being a shareholder of, and obtaining 

advances from, that Federal Home Loan 

Bank; 

(3) Any independent contractor for a 

regulated entity (including any attorney, 

appraiser, or accountant), if: 

(i) The independent contractor 

knowingly or recklessly participates 

in— 

(A) Any violation of any law or 

regulation; 

(B) Any breach of fiduciary duty; or 

(C) Any unsafe or unsound practice; 

and 

(ii) Such violation, breach, or practice 

caused, or is likely to cause, more than 

a minimal financial loss to, or a 

significant adverse effect on, the 

regulated entity; 

(4) Any not-for-profit corporation that 

receives its principal funding, on an 

ongoing basis, from any regulated entity; 

and 

(5) The Office of Finance. 

Fraud means a material misstatement, 

misrepresentation, or omission relied 

upon by a regulated entity. 

Possible fraud means that a regulated 

entity has a reasonable belief, based 

upon a review of information available 

to the regulated entity, that fraud may 

be occurring or has occurred. 

Regulated entity means the Federal 

National Mortgage Association and any 


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Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules 28639 

affiliate thereof, the Federal Home Loan 

Mortgage Corporation and any affiliate 

thereof, any Federal Home Loan Bank; 

the term ‘‘regulated entities’’ means, 

collectively, the Federal National 

Mortgage Association and any affiliate 

thereof, the Federal Home Loan 

Mortgage Corporation and any affiliate 

thereof, and the Federal Home Loan 

Banks. 

Safety and Soundness Act means the 

Federal Housing Enterprises Financial 

Safety and Soundness Act of 1992, as 

amended by the Federal Housing 

Finance Regulatory Reform Act of 2008, 

Division A of the Housing and 

Economic Recovery Act of 2008, Public 

Law 110–289, 122 Stat. 2654 (2008). 

§ 1233.3 Reporting. 

(a) Timeframe for reporting. (1) A 

regulated entity shall submit to the 

Director a written report relating to any 

fraud or possible fraud occurring in 

connection with a loan, a series of loans 

or other financial instruments that the 

regulated entity has purchased or sold, 

and shall do so promptly after 

identifying such fraud or possible fraud 

or is notified about such fraud or 

possible fraud by law enforcement or 

other government authority. 

(2) In addition to submitting a report 

in accordance with paragraph (a)(1) of 

this section, in any situation that would 

have a significant impact on the 

regulated entity, the regulated entity 

shall immediately report any fraud or 

possible fraud to the Director by 

telephone or electronic communication. 

(b) Format for reporting. (1) The 

report shall be in such format and shall 

be filed in accordance with such 

procedures that the Director may 

prescribe. 

(2) The Director may require a 

regulated entity to provide such 

additional or continuing information 

relating to such fraud or possible fraud 

as the Director deems appropriate. 

(3) A regulated entity may satisfy the 

reporting requirements of this section by 

submitting the required information on 

a form or in another format used by any 

other regulatory agency, provided it has 

first obtained the prior written approval 

of the Director. 

(c) Retention of records. A regulated 

entity shall maintain a copy of any 

report submitted to the Director and the 

original or business record equivalent of 

any supporting documentation for a 

period of five years from the date of 

submission. 

(d) Nondisclosure. (1) A regulated 

entity may not disclose to any person 

that it has submitted a report to the 

Director pursuant to this section, unless 

it has first obtained the prior written 

approval of the Director. 

(2) The restriction in paragraph (d)(1) 

of this section does not prohibit a 

regulated entity from— 

(i) Disclosing or reporting such fraud 

or possible fraud pursuant to legal 

requirements, including reporting to 

appropriate law enforcement or other 

governmental authorities; or 

(ii) Taking any legal or business 

action it may deem appropriate, 

including any action involving the party 

or parties connected with the fraud or 

possible fraud. 

(e) No waiver of privilege. A regulated 

entity does not waive any privilege it 

may possess under any applicable law 

as a consequence of reporting fraud or 

possible fraud under this part. 

§ 1233.4 Internal controls, procedures, and 

training. 

(a) In General. Each regulated entity 

shall establish and maintain adequate 

and efficient internal controls and 

procedures and an operational training 

program to assure an effective system to 

detect and report fraud in connection 

with the purchase or sale of a loan or 

other financial instrument. 

(b) Examination. The examination by 

FHFA of fraud reporting programs of 

each regulated entity must include an 

evaluation of the extent to which 

internal policies, procedures, and 

training programs of the regulated entity 

minimize risks from fraud and to the 

extent that fraud or possible fraud is 

consistently reported to FHFA. 

§ 1233.5 Protection from liability for 

reports. 

As provided by section 1379E of the 

Safety and Soundness Act (12 U.S.C. 

4642(b)), a regulated entity that, in good 

faith, submits a report pursuant to this 

part, and any entity-affiliated party, 

that, in good faith, submits or requires 

a person to submit a report pursuant to 

this part, shall not be liable to any 

person under any provision of law or 

regulation, any constitution, law, or 

regulation of any State or political 

subdivision of any State, or under any 

contract or other legally enforceable 

agreement (including any arbitration 

agreement) for such report, or for any 

failure to provide notice of such report 

to the person who is the subject of such 

report, or any other persons identified 

in the report. 

§ 1233.6 Supervisory action. 

Failure by a regulated entity to 

comply with this part may subject the 

regulated entity or the board members, 

officers, or employees thereof to 

supervisory action by FHFA, including 

but not limited to, cease-and-desist 

proceedings and civil money penalties. 

CHAPTER XVII—OFFICE OF FEDERAL 

HOUSING ENTERPRISE OVERSIGHT, 

DEPARTMENT OF HOUSING AND URBAN 

DEVELOPMENT 

PART 1731—[REMOVED] 

2. Remove part 1731. 

Dated: June 4, 2009. 

James B. Lockhart III, 

Director, Federal Housing Finance Agency. 

[FR Doc. E9–14189 Filed 6–16–09; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

30 CFR Part 250 

RIN 1010–AD15 

[Docket ID MMS–2008–OMM–0003] 

Safety and Environmental Management 

Systems for Outer Continental Shelf 

Oil and Gas Operations 

AGENCY: Minerals Management Service 

(MMS), Interior. 

ACTION: Proposed rule. 

SUMMARY: The MMS proposes to require 

operators to develop and implement a 

Safety and Environmental Management 

System to address oil and gas operations 

in the Outer Continental Shelf. The 

Safety and Environmental Management 

System would consist of four 

elements—Hazards Analysis, 

Management of Change, Operating 

Procedures, and Mechanical Integrity— 

that, until now, have not been covered 

in our regulations. The MMS analyzed 

accident panel investigation reports, 

incident reports, and incidents of 

noncompliance and determined that the 

root cause of most safety and 

environmental accidents and incidents 

is one or more of these four elements. 

The MMS believes that requiring 

operators to implement a Safety and 

Environmental Management System 

will reduce the risk and number of 

accidents, injuries, and spills during 

Outer Continental Shelf activities. 

DATES: Submit comments by September 

15, 2009. The MMS may not fully 

consider comments received after this 

date. Submit comments to the Office of 

Management and Budget on the 

information collection burden in this 

proposed rule by July 17, 2009. This 

does not affect the deadline for the 

public to comment to MMS on the 

proposed regulations. 


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