66848 Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / Proposed Rules

November 13, 2000. Several of these

comments raise substantive issues that

may result in modification of the

proposed rule. The comment period is

reopened to allow consideration of the

comments received after November 13,

2000, and to allow additional time for

comment on the proposed rule.

Comments must be received on on

before March 27, 2002.

This notice is published in

accordance with the authority delegated

by the Secretary of the Interior to the

Assistant Secretary—Indian Affairs by

209 Department Manual 8.1.

Dated: December 11, 2001.

Neal A. McCaleb,

Assistant Secretary, Indian Affairs.

[FR Doc. 01–31664 Filed 12–26–01; 8:45 am]

BILLING CODE 4310–02–M

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010–AC95

Oil and Gas and Sulphur Operations in

the Outer Continental Shelf—

Document Incorporated by

Reference—API 510

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Proposed rule.

SUMMARY: MMS is proposing to add a

document to be incorporated by

reference into our regulations governing

oil and gas and sulphur operations in

the Outer Continental Shelf (OCS). This

revision will ensure that lessees use the

best available and safest technologies

while operating in the OCS. The new

document, API 510, is titled ‘‘Pressure

Vessel Inspection Code: Maintenance

Inspection, Rating, Repair, and

Alteration.’’

DATES: We will consider all comments

we receive by February 25, 2002. We

will begin reviewing comments then

and may not fully consider comments

we receive after February 25, 2002.

ADDRESSES: Mail or hand-carry

comments (three copies) to the

Department of the Interior; Minerals

Management Service; Mail Stop 4024;

381 Elden Street; Herndon, Virginia

20170–4817; Attention: Rules

Processing Team. If you wish to e-mail

comments, the e-mail address is:

rules.comments@mms.gov. Reference

API 510 in your e-mail subject line.

Include your name and return address

in your e-mail message and mark your

message for return receipt.

FOR FURTHER INFORMATION CONTACT:

Richard Ensele, Operations Analysis

Branch, at (703) 787–1583.

SUPPLEMENTARY INFORMATION: We use

standards, specifications, and

recommended practices developed by

standard-setting organizations and the

oil and gas industry for establishing

requirements for activities in the OCS.

This practice, known as incorporation

by reference, allows us to incorporate

the provisions of technical standards

into the regulations without increasing

the volume of the Code of Federal

Regulations (CFR). The legal effect of

incorporation by reference is that the

material is treated as if it was published

in the Federal Register. This material,

like any other properly issued

regulation, then has the force and effect

of law. We hold operators/lessees

accountable for complying with the

documents incorporated by reference in

our regulations. The regulations found

at 1 CFR part 51 govern how MMS and

other Federal agencies incorporate

various documents by reference.

Agencies can only incorporate by

reference through publication in the

Federal Register. Agencies must also

gain approval from the Director of the

Federal Register for each publication

incorporated by reference. Incorporation

by reference of a document or

publication is limited to the specific

edition or specific edition and

supplement or addendum cited in the

regulations.

The proposed rule will incorporate by

reference into MMS regulations the

provisions of API 510.

We have reviewed this document and

have determined that the latest edition

should be incorporated into the

regulations to ensure the use of the best

available and safest technologies.

MMS’s Review Concerning Pressure

Vessels

The MMS documents incorporated by

reference currently include three

sections of the American Society of

Mechanical Engineers (ASME) 1998

Boiler and Pressure Vessel Code:

Section I— Rules for the Construction

of Power Boilers;

Section IV—Rules for the

Construction of Heating Boilers; and

Section VIII—Rules for the

Construction of Pressure Vessels.

Each of these sections provides

requirements applicable to the design,

fabrication, inspection, testing, and

certification of newly constructed

boilers and pressure vessels. The ASME

Code has been the recognized standard

for the construction of new boilers and

pressure vessels since the early 1900’s.

The ASME Code does not, however,

address the maintenance inspection,

rating, repair, and alteration of pressure

vessels after the vessels are placed into

service.

MMS has not previously included in

its documents incorporated by reference

a standard on pressure vessel

maintenance inspection, rating, repair,

and alteration. Our review of the

document proposed for incorporation

into MMS regulations, API 510,

indicates that it would be beneficial to

us and to the offshore industry to clarify

requirements on pressure vessel

operations, inspections, repairs, and

maintenance of the pressure vessels in

service on the OCS.

In December 1931, ASME and the

American Petroleum Institute (API)

created a joint committee to consider

safe practices in the design,

construction, inspection, and repair of

pressure vessels used in the oil and gas

industry. The resulting API/ASME Code

remained in effect until discontinued in

1956. Since the need for uniform

maintenance, inspection, and repair of

pressure vessels continued, API

published the first edition of API 510 in

1958 to satisfy this need.

Another set of boiler and pressure

vessel requirements exists, which is

widely used or referenced by many

states and municipalities in their

regulations. It is the National Board

Inspection Code (NBIC). Many elements

of the discontinued API/ASME Code

have been included in the NBIC since

its 1960 edition. It is the intention of

both API and NBIC that their respective

scopes not overlap. NBIC advises in its

scope that ‘‘It is recognized that an

American Petroleum Institute

Inspection Code, API–510, exists

covering the maintenance inspection,

repair, alteration and re-rating

procedures for pressure vessels used by

the petroleum and chemical process

industries, which is applicable in these

special circumstances. It is the intent

that this Inspection Code cover

installations other than those covered by

API–510 unless the jurisdiction rules

otherwise.’’

NBIC is an excellent generic code

applicable to boilers and pressure

vessels in general industrial uses. API

510 is designed specifically for the

petroleum and chemical process

industries. Therefore, API 510 is the

appropriate document to provide for the

safest maintenance inspection, rating,

repair, and alteration of pressure vessels

in service on the OCS.

Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / Proposed Rules 66849

Procedural Matters

Public Comments Procedure

Our practice is to make comments,

including names and home addresses of

respondents, available for public review

during regular business hours.

Individual respondents may request that

we withhold their home address from

the rulemaking record, which we will

honor to the extent allowable by law.

There may be circumstances in which

we would withhold from the

rulemaking record a respondent’s

identity, as allowable by the law. If you

wish us to withhold your name and/or

address, you must state this

prominently at the beginning of your

comment. However, we will not

consider anonymous comments. We

will make all submissions from

organizations or businesses, and from

individuals identifying themselves as

representatives or officials of

organizations or businesses, available

for public inspection in their entirety.

Background

This proposed rulemaking will add a

document to those incorporated by

reference in the regulations. The

addition of API 510, dealing with

maintenance inspection, rating, repair,

and alteration of the various pressure

vessels in use on the OCS, to the

documents incorporated by reference in

our regulations will have a minor

impact on the entire industry. The

maintenance and repair of pressure

vessels has been an ongoing

responsibility of the industry since the

OCS program’s inception. The inclusion

of API 510, first published in 1958, will

provide for uniform maintenance and

inspection practices.

Regulatory Planning and Review

(Executive Order 12866)

This document is not a significant

rule and is not subject to review by the

Office of Management and Budget

(OMB) under Executive Order 12866.

(1) This rule will not have an effect of

$100 million or more on the economy.

It will not adversely affect in a material

way the economy, productivity,

competition, jobs, the environment,

public health or safety, or State, local,

or tribal governments or communities.

The rule would have no significant

economic impact because the

documents do not contain any

significant revisions that will cause

lessees or operators to change their

business practices. The documents will

not require the retrofitting of any

facilities. The documents may lead to

minimal changes in operating practices,

but the associated costs will be very

minor.

(2) This rule will not create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency.

(3) This rule does not alter the

budgetary effects or entitlements, grants,

user fees, or loan programs or the rights

or obligations of their recipients.

(4) This rule does not raise novel legal

or policy issues.

Regulatory Flexibility (RF) Act

The Department certifies that this rule

will not have a significant economic

effect on a substantial number of small

entities under the RF Act (5 U.S.C. 601

et seq.). The provisions of this rule will

not have a significant economic effect

on offshore lessees and operators,

including those that are classified as

small businesses. The Small Business

Administration (SBA) defines small

business as having:

• Annual revenues of $5 million or

less for exploration service and field

service companies.

• Fewer than 500 employees for

drilling companies and for companies

that extract oil, gas, or natural gas

liquids.

Under the North American Industry

Classification System Code 211111,

Crude Petroleum and Natural Gas

Extraction, MMS estimates that a total of

1,380 firms drill oil and gas wells

onshore and offshore. The group

affected by this rule is the

approximately 130 companies that are

offshore lessees/operators. According to

SBA criteria, 39 companies qualify as

large firms, leaving up to 91 companies

that may qualify as small firms with

fewer than 500 employees. However,

because of the extremely high cost and

technical complexity involved in

exploration and development offshore,

the vast majority of lessees/operators

that will be affected will be companies

with larger revenues.

The API document proposed for

incorporation into MMS regulations

covers pressure vessels on offshore

structures. Offshore structures can cost

hundreds of millions of dollars to build

and install. The document to be

incorporated by this rule has been used

by the industry for many years, and the

latest edition represents the current

state-of-the-art industry practices.

Boilers and pressure vessels currently

being built are being constructed

according to the requirements in the

ASME Code. Existing pressure vessel

equipment is being inspected and

maintained to the requirements of API

510. Additional costs, if any, are already

accepted by the industry.

Your comments are important. The

Small Business and Agriculture

Regulatory Enforcement Ombudsman

and 10 Regional Fairness Boards were

established to receive comments from

small businesses about Federal agency

enforcement actions. The Ombudsman

will annually evaluate the enforcement

activities and rate each agency’s

responsiveness to small business. If you

wish to comment on the enforcement

actions of MMS, call toll-free (888) 734–

3247.

Small Business Regulatory Enforcement

Fairness Act (SBREFA)

This rule is not a major rule under 5

U.S.C. 804(2), SBREFA. This rule:

(a) Does not have an annual effect on

the economy of $100 million or more.

The proposed rule will not cause any

significant costs to lessees or operators.

The only costs will be the purchase of

the new documents and minor revisions

to some operating and maintenance

procedures. The minor revisions to

operating and maintenance procedures

may result in some minor costs or may

actually result in minor cost savings.

(b) Will not cause a major increase in

costs or prices for consumers,

individual industries, Federal, State, or

local government agencies, or

geographic regions.

(c) Does not have significant adverse

effect on competition, employment,

investment, productivity, innovation, or

the ability of United States-based

enterprises to compete with foreignbased enterprises.

Paperwork Reduction Act (PRA) of

1995

There are no information collection

requirements associated with this rule.

The DOI has determined that this

regulation does not contain information

collection requirements pursuant to

PRA (44 U.S.C. 3501 et seq.) We will not

be submitting an information collection

request to OMB.

Federalism (Executive Order 13132)

According to Executive Order 13132,

the rule does not have significant

Federalism effects. This rule will not

substantially and directly affect the

relationship between the Federal and

State Governments. This rule will

simply add one additional document

incorporated by reference to ensure that

the industry uses the best and safest

technologies. This rule does not impose

costs on States or localities. Any costs

incurred affect only the oil industry and

will be minor.

66850 Federal Register / Vol. 66, No. 248 / Thursday, December 27, 2001 / Proposed Rules

Takings Implication Assessment

(Executive Order 12630)

According to Executive Order 12630,

this rule does not have significant

Takings implications. A Takings

Implication Assessment is not required.

Energy Supply, Distribution, or Use

(Executive Order 13211)

This rule is not a significant rule and

is not subject to review by the Office of

Management and Budget under

Executive Order 12866. The rule does

not have a significant effect on energy

supply, distribution, or use because it

merely adds a new standard to be

incorporated by reference that will

provide for uniform maintenance and

inspection practices. Thus, a Statement

of Energy Supply, Distribution, or Use is

not required.

Civil Justice Reform (Executive Order

12988)

According to Executive Order 12988,

the Office of the Solicitor has

determined that this rule does not

unduly burden the judicial system and

meets the requirements of sections 3(a)

and 3(b)(2) of the Order.

National Environmental Policy Act

(NEPA)

This rule does not constitute a major

Federal action significantly affecting the

quality of the human environment. A

detailed statement under the NEPA of

1969 is not required.

Unfunded Mandates Reform Act

(UMRA) of 1995

This rule does not impose an

unfunded mandate on State, local, and

tribal governments or the private sector

of more than $100 million per year. The

rule does not have a significant or

unique effect on State, local, or tribal

governments or the private sector. A

statement containing the information

required by the UMRA (2 U.S.C. 1531 et

seq.), 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: December 3, 2001.

J. Steven Griles,

Acting Assistant Secretary, Land and

Minerals Management.

For the reasons stated in the

preamble, the Minerals Management

Service 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. 1331 et seq.

2. In § 250.198, in the table in

paragraph (e), a new entry for document

API 510 is added in alphanumeric order

to read as follows:

§ 250.198 Documents incorporated by

reference.

* * * * *

(e) * * *

Title of document Incorporated by reference at

*******

API 510, Pressure Vessel Inspection Code: Maintenance Inspection,

Rating, Repair, and Alteration, Eighth Edition, June 1997, API Stock

No. C51008.

§ 250.803(b)(1), (b)(1)(i); § 250.1629(b)(1), (b)(1)(i).

*******

4. In § 250.803, paragraph (b)(1) and

the first sentence of paragraph (b)(1)(i)

are revised to read as follows:

§ 250.803 Additional production system

requirements.

* * * * *

(b) * * *

(1) Pressure and fired vessels.

Pressure and fired vessels must be

designed, fabricated, and code stamped

in accordance with the applicable

provisions of sections I, IV, and VIII of

the American Society of Mechanical

Engineers (ASME) Boiler and Pressure

Vessel Code. Pressure and fired vessels

must have maintenance inspection,

rating, repair, and alteration performed

in accordance with the applicable

provisions of the American Petroleum

Institute’s Pressure Vessel Inspection

Code: Maintenance Inspection, Rating,

Repair, and Alteration (API 510).

(i) Pressure safety relief valves must

be designed and installed in accordance

with the applicable provisions of

sections I, IV, and VIII of the ASME

Boiler and Pressure Vessel Code, and

must have maintenance inspection,

rating, repair, and alteration performed

in accordance with the provisions of

API 510. * * *

* * * * *

5. In § 250.1629, paragraph (b)(1) and

the first sentence of paragraph (b)(1)(i)

are revised to read as follows:

§ 250.1629 Additional production and fuel

gas system requirements.

* * * * *

(b) * * *

(1) Pressure and fired vessels must be

designed, fabricated, and code stamped

in accordance with the applicable

provisions of sections I, IV, and VIII of

the American Society of Mechanical

Engineers (ASME) Boiler and Pressure

Vessel Code. Pressure and fired vessels

must have maintenance inspection,

rating, repair, and alteration performed

in accordance with the provisions of the

American Petroleum Institute’s Pressure

Vessel Inspection Code: Maintenance

Inspection, Rating, Repair, and

Alteration (API 510).

(i) Pressure safety relief valves must

be designed and installed in accordance

with the applicable provisions of

sections I, IV, and VIII of the ASME

Boiler and Pressure Vessel Code, and

must have maintenance inspection,

rating, repair, and alteration performed

in accordance with the applicable

provisions of API 510. * * *

* * * * *

[FR Doc. 01–31710 Filed 12–26–01; 8:45 am]

BILLING CODE 4310–MR–P