Source: https://www.federalregister.gov/documents/2002/05/17/02-11640/oil-and-gas-and-sulphur-operations-in-the-outer-continental-shelf-decommissioning-activities
Timestamp: 2017-11-17 23:56:17
Document Index: 152245659

Matched Legal Cases: ['§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', '§\u2009250', 'art 256', '§\u2009256', '§\u2009256', '§\u2009256', '§\u2009256', 'art 250', 'art 250']

Federal Register :: Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Decommissioning Activities
Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Decommissioning Activities
A Rule by the Minerals Management Service on 05/17/2002
67 FR 35397
35397-35412 (16 pages)
02-11640
Differences Between Proposed and Final Rules
Organization of the Regulation
Abandoning Platforms in Place (30 CFR 250.1728)
Power Cable Guidance
Section 250.1006
Section 250.1700
Section 250.1702
Section 250.1703
Section 250.1704
Section 250.1711 (Proposed section 250.1707)
Section 250.1712 (Proposed section 250.1709)
Section 250.1715 (Proposed section 250.1710)
Section 250.1716 (Proposed section 250.1712 and section 250.1713)
Section 250.1721 (Proposed section 250.1711)
Section 250.1725 (Proposed section 250.1718)
Section 250.1727 (Proposed section 250.1719)
Section 250.1728 (Proposed section 250.1720 and section 250.1721)
Section 250.1730 (Proposed section 250.1723)
Section 250.1740 (Proposed section 250.1714)
Section 250.1741 (Proposed section 250.1714 and section 250.1717)
Section 250.1742 (Proposed section 250.1715)
Section 250.1741 (Proposed section 250.1717)
Proposed Section 250.1722
Section 250.1750 (Proposed section 250.1724)
Section 250.1754 (Proposed section 250.1725)
Temporarily Plugging Wells
Temporary Plugging of Wells
https://www.federalregister.gov/d/02-11640 https://www.federalregister.gov/d/02-11640
Start Preamble Start Printed Page 35398
This final rule amends MMS regulations governing oil and gas operations in the Outer Continental Shelf (OCS) to update decommissioning requirements. The rule includes requirements for plugging a well, decommissioning a platform and pipeline, and clearing a lease site. We restructured the requirements to make the regulations easier to read and understand. The final rule also updates requirements to reflect changes in technology. The final technical changes will help ensure that lessees and pipeline right-of-way holders conduct decommissioning operations safely and effectively.
On July 7, 2000, we published the proposed rule in the Federal Register (65 FR 41892). During the 90-day comment period, which ended on October 5, 2000, MMS received eight letters of comment from the oil and gas industry, the environmental community, and other government agencies.
In 1996, at the request of MMS, the Marine Board of the National Research Council (NRC) published a report titled “An Assessment of Techniques for Removing Offshore Structures.” On April 15-17, 1996, MMS convened an International Decommissioning Workshop in New Orleans, Louisiana, to discuss the recommendations in the NRC report and current industry decommissioning practices. The workshop drew over 475 attendees to discuss and make recommendations on OCS decommissioning operations. On August 8, 1996, MMS published a notice in the Federal Register (61 FR 41422) that requested comments on its plans to follow up on recommendations received at the workshop.
We also sponsored several other public workshops, including one in Ventura, California, on September 23-25, 1997. The purpose of the workshops was to continue the process of discussing decommissioning activities and to receive recommendations.
In addition to the changes we made to the final rule in response to comments, MMS reworded certain phrases for further clarity. In many instances, the changes improve MMS's internal work processes. MMS has also added more specific guidance in this final rule concerning items that should be included in decommissioning applications.
We reviewed all of the comments, and in some instances, we revised the final language based on these comments. MMS grouped the comments by major issues and regulatory sections.
We received comments from various non-government agencies supporting the new organizational structure of the regulation which locates all of the decommissioning requirements into one subpart. We received no negative comments; therefore, we have kept that structure.
Comment: MMS received comments from non-profit public interest groups, private citizens and government agencies stating that MMS should not permit oil companies to abandon platforms in place in the Pacific and Alaska OCS Regions.
Response: MMS requires that lessees remove all platforms to at least 15 feet below the mud line. Depending on the situation, MMS may allow an alternate removal depth if the remaining structure would not become a hazard to other users of the seafloor and in other very specific situations as listed in § 250.1728. However, this is not meant to allow large portions of platforms to be abandoned in place. As one commenter suggested, MMS is closely following the research and legislation on artificial reefs. As provided in § 250.1730, MMS may grant a departure from the removal requirements if the structure becomes part of an artificial reef program.
Comment: A lessee requested that MMS provide guidance on power cables.
Response: Under 30 CFR 250.1700, power cables associated with OCS oil, gas, or sulphur operations may be considered to be obstructions. If they are, the lessee must remove them under §§ 250.1740 through 250.1743.
Comment: A lessee asked if NTL 98-26 concerning site clearance will be rescinded or revised because the new regulations would discuss site clearance.
Response: We may revise the NTL, as authorized under § 250.103, to provide more detail on trawling consistent with this final rule.
Comment: A government agency recommended that the regulation should specify that the operator must remove drilling piles or shell mounds from the base of the platform if required by the Department of the Interior (DOI).
Response: MMS has defined these items as obstructions in § 250.1700. Sections 250.1740 through 250.1743 require that obstructions be removed.
Comment: An oil industry group asked what the trawling requirements are for unburied pipelines.
Response: We address the relationship of the trawling requirements to unburied pipelines in the regulation at § 250.1741(g). That section prescribes that trawling must be parallel to an unburied pipeline and may not cross the pipeline unless the pipeline is smaller than 8 inches in diameter and has no obstructions present.
Comment: An oil industry representative asked if the Regional Supervisor would be authorized to prescribe variances for site clearance.
Response: Section 1740(c) authorizes variance.
Comment: Lessees commented that the costs for trawling operations for temporarily abandoned wells were underestimated for § 250.1722.
Response: We received estimates from trawling organizations that the trawling operation would cost about $2,500 per day, and it may take 1 to 3 days to trawl the site of a temporarily abandoned (TA) well. However, we did not include an estimate for equipment that may be lost or damaged during the operation. Therefore, we may have unintentionally underestimated the cost by using an average cost of $3,000. We have re-verified the costs with trawling organizations and have adjusted the costs upward to an average cost of $9,000 per operation. The trawling organizations noted that the costs for temporary abandonment would be less than the costs of trawling for site clearance because the amount of debris Start Printed Page 35399should be substantially less for a TA well site.
Comment: Pipeline companies commented that it is not clear whether § 250.1006 applies to both lease term and right-of-way pipelines.
Response: The requirements apply to both lease term and right-of-way pipelines because DOI has regulatory authority for both. We have added the term “DOI” to the heading to make it clear that we are not referring to pipelines regulated by the Department of Transportation.
Comment: A pipeline company commented that MMS should clarify the requirements for out-of-service pipelines at each timeframe.
Response: We have created a table to clarify the requirements for out-of-service pipelines for 0 to 1 year, more than 1 year, and 5 or more years.
Comment: A pipeline company suggested adding a definition for out-of-service pipelines.
Response: We have added a definition for out-of-service pipelines in § 250.1001.
Comment: A pipeline company commented that 1 year is not enough time to allow before MMS requires a lessee to flush and fill a line with seawater when the line is out of service. Also, 5 years is too much time before requiring total decommissioning.
Response: We have retained the 1-year and 5-year requirements. MMS is doing research on flushing out-of-service pipelines and may address this in the future.
Comment: A government agency commented that MMS should expand the definition of obstacles to include marine growth such as shell mounds, and debris from oil, gas, or sulphur operations left in vessel traffic lanes.
Response: We have added marine growth to the definition of obstructions. Obstructions already include all debris from oil, gas, or sulphur operations, which is practical to remove from the area to be trawled.
Comment: A lessee commented that MMS should remove “(in the Pacific OCS Region)” from the definition because the Gulf OCS Region has power cables.
Response: We agree. MMS may require power cables to be removed if they are part of OCS oil, gas, or sulphur operations.
Comment: A lessee commented that MMS should add a qualifier that the sales contracts between operating partners may excuse the new lessee from accruing decommissioning obligations.
Response: All transferees of title or operating rights will continue to accrue the decommissioning obligations. Assignors and assignees may provide in their contract for allocation of responsibilities, but the Government should not be restricted from seeking performance by any of the parties by terms of a private agreement. This position has not changed.
Comment: A government agency commented that MMS should include a diligence requirement to prevent operators from indefinitely delaying proper decommissioning. As a mechanism, the commenter suggested that MMS review production to determine if the operator is entitled to continue operations based on economics.
Response: MMS does require lessees to prove that leases are still capable of production in paying quantities under 30 CFR 250.180 and that wells and other facilities are still needed for lease operations. Also see §§ 250.1710 and 250.1711 for timely well plugging requirements.
Comment: A lessee questioned how the MMS could expect to receive a platform removal application for the Pacific OCS Region and Alaska OCS Region at least 2 years before production ceases.
Response: Planning ahead is the key to a successful decommissioning operation, particularly given the size of the facilities to be removed in the Pacific OCS Region. Removal events are planned and contracted for several years in advance. The platforms that will be removed in the Pacific OCS Region will be the largest platforms located in the deepest water to date. According to a research project that MMS contracted for the Pacific OCS Region titled the “State of the Art of Removing Large Platforms Located in Deep Water,” some of the removal equipment will be brought in from the North Sea at great expense, and it will take a considerable amount of planning and time.
Comment: A lessee commented that MMS should include a requirement to make the final platform removal application due 2 years after the deadline for the initial platform removal application (in the Pacific OCS Region and Alaska OCS Region).
Response: We have included this recommendation in § 250.1704(b).
Comment: A lessee commented that MMS should replace the provision for submitting decommissioning applications in (a) “at least 2 years before production is projected to cease” with “at least 1 year before production is projected to cease.”
Response: We have maintained the requirement for submitting the application 2 years in advance because of the complexity of the platform removals. If we find that we no longer need 2 years notice, we will revisit this regulation. However, we have adopted the recommendation to add the language “before production is projected to cease” to the requirement.
Comment: An oil industry organization recommended that MMS change (b) to “If the well is the last producing well on a lease, and not useful for further operations and is not capable of profitable oil, gas, or sulphur production.” This would eliminate abandonment of wells for a producing lease, field, or platform.
Response: We disagree. It is MMS's responsibility to ensure that wells are properly plugged as soon as it is determined that they are no longer needed for operations. We do not see any benefit to keeping an unnecessary well unplugged.
Comment: We received a comment from a government agency asking how we know when a well is not capable of producing in paying quantities.
Response: Some of the information that we may request with form MMS-124 includes recent well tests, remaining recoverable reserves, production data, pressure data, and economic analysis. This information would help us determine if a well is capable of producing in paying quantities.
Comment: An oil industry organization recommended that in proposed § 250.1709(a)(2), MMS should only require submission of “available” recent well test data and pressure data because the data may not be available at the time of the submittal of form MMS-124.
Response: We agree, and we have revised the final rule at § 250.1712(b).
Comment: An oil industry organization recommended that MMS change proposed § 250.1709(a)(6)(ii) from “All perforated intervals” to “All perforated intervals that have not been plugged.” This eliminates the need to re-submit any details regarding other Start Printed Page 35400intervals in the well that were previously abandoned with the appropriate approvals.
Response: We agree, and we have made the change at § 250.1712(f)(2).
Comment: An oil industry organization recommended that MMS delete proposed paragraph § 250.1710(h) concerning cement displacement plugs because it is addressed in paragraph (k) for testing of plugs placed by displacement, it is not common practice and is expensive ($20,000).
Response: We agree, and we have made the change and renumbered the paragraphs. See § 250.1715(b) in this final rule.
Comment: An oil industry organization recommended that MMS change “plugs” to “plug(s)” as applicable to cover both where it would be one plug and where there may be more than one anticipated.
Response: We agree, and we have done so in appropriate places in the rule.
Comment: An oil industry organization recommended that MMS remove the word “permanent” before bridge plugs in proposed § 250.1710(d)(2), because other references to bridge plugs do not specify the type of bridge plug.
Response: We agree, and we have deleted this limitation to a specific type of bridge plug.
Comment: An oil industry organization recommended that MMS change proposed § 250.1710(i) to “Cement plugs designed to set before freezing and have a low heat of hydration” for clarity.
Response: We agree, and we have made the change.
Comments: A county government organization recommended that this section should specify that the operators should not leave the wellheads and casing above the mud line.
Response: MMS will only allow a lessee an alternate removal depth when the object would not become a hazard, the water depth is greater than 800 meters, or other very specific situations. We believe that this is a reasonable requirement. A 1996 report from the NRC titled, “An Assessment of Techniques for Removing Structures,” recommends that regulations governing removals need to be sufficiently flexible to accommodate the complex requirements of a wide variety of structures, a spectrum of marine life, and various users. MMS will analyze the requests for alternate removal depth carefully and case-by-case.
Comment: A lessee noted that it is not clear how to determine and/or prove that a particular obstruction constitutes a hazard.
Response: In determining whether an obstruction constitutes a hazard, consider whether the area would not be used by others (fishing community, military, etc.) and whether geotechnical information demonstrates that erosional processes will not expose the object to create obstructions.
Comment: A lessee recommended that MMS use 1,000 feet or more instead of 800 meters (2,624 feet) as the depth for departure from the requirement to remove all wellheads and casings to at least 15 feet below the mud line, in paragraph (a).
Response: Allowing an alternate removal requirement for all wellheads and casings in water depths 1,000 feet or more may not provide adequate protection against the wellhead becoming an obstruction. However, applications for removal in water depths less than 800 meters (2,624 feet) will be evaluated case-by-case. We also request concurrence from the Department of the Navy on these types of proposals.
Comment: An oil industry organization recommended that MMS add language to allow an alternative removal depth if “seafloor sediment stability poses safety concerns,” because when using divers, mudline requirements can be difficult to meet in areas with soft sediments, and cave-ins have led to diver injuries.
Response: We agree that there may be cases when seafloor sediment stability poses safety concerns if divers are used; however, we would only approve an alternative removal depth if you determine, and MMS concurs, that you must use divers, and seafloor sediment stability poses safety concerns. You must have determined that no other removal method is possible. We have made this change in the regulations.
Comment: An oil industry organization recommended that MMS change the wording in proposed § 250.1711(c) to “Set a retrievable or permanent-type bridge plug or a cement plug at least 100-feet long in the inner-most casing. The top of the bridge plug or cement plug must be no greater than 1,000 feet below the mud line. MMS may consider approving alternate requirements for sub-sea wells case-by-case.” Shallow plugs on wells intended for re-entry can be dangerous.
Response: We agree and have added § 250.1721(d).
Comment: A lessee commented that MMS should require a subsea dome cover only when the water is less than 200 feet.
Response: We disagree because damage can occur to fishing nets in depths between 200 and 300 feet. Therefore, we have specified in § 250.1721(f) that subsea domes are not required in water depths greater than 300 feet.
Comment: An oil industry organization recommended that MMS should allow subsea domes in proposed § 250.1711(g)(3) that extend more than 10 feet above the seafloor case-by-case due to different well conditions that may exist. The 10-foot requirement seems an arbitrary figure, with no engineering or maritime justification. In fact, the current installations are greater than 10 feet above the seafloor.
Response: We have added flexibility in § 250.1722(b) for allowing subsea domes that extend beyond 10 feet when approved. However, the higher the dome, the more difficult it will be for lessees to add a net guard and to have the trawling completed. We have also clarified that corrective action must be taken if the dome is not effective.
Comment: A lessee commented that MMS should rescind NTL 98-19 and use § 250.1720.
Response: The NTL is designed to give more specific guidance on satisfying the performance-based requirement. We plan to revise it to compliment the new regulation.
Comment: A lessee commented that MMS should add more flexibility to the new requirement for trawling over temporarily abandoned well domes.
Response: We agree. In § 250.1722(h), MMS has added that we may issue a departure for the trawling test if the lessee marks the subsea protective covering with an automatic daily tracking buoy or uses a design and installation method that has been proven with similar bottom conditions.
Comment: A lessee commented that in proposed § 250.1718(a) MMS should include a requirement for considering whether removal and placement in a previously designated artificial reef site is more appropriate, and to allow time to make this determination.
Response: MMS is not the agency to determine if placement in an artificial reef site is more appropriate. However, if time is needed to make this determination, it may be obtained under § 250.1725(a). Start Printed Page 35401
Comment: An oil industry organization recommended that MMS add language to allow abandonment in place of subsea equipment in greater than 1,000 feet of water because they pose no hazard or obstruction. This has also been approved in DWOP submittals by MMS.
Response: MMS may approve such a request on a case-by-case basis only. However, blanket approval will not be given.
Comment: An oil industry organization recommended that MMS amend the rule to provide a waiver to defer platform removal as part of a joint industry program to remove multiple platforms or facilities. A joint industry program to remove multiple platforms (e.g. SWARS program in the Pacific OCS Region) may require that platforms remain for longer than 1 year after lease termination. This may also be the preferred alternative due to lower environmental impacts.
Response: Under 30 CFR 250.141, MMS can grant departures from regulations or lease stipulations or approve alternative compliance measures for sufficient cause.
Comment: A commenter recommended that MMS require that unburied pipelines that may become an obstruction be removed.
Response: Removal is required under § 250.1754 because lessees and pipeline right-of-way holders may only decommission pipelines in place if they will not become a hazard.
Comment: A lessee asked what constitutes an active pipeline. Also NTL 98-26 lists requirements for unburied lines. The lessee recommended that we put these requirements in this rule.
Response: Active pipelines are those not out of service or decommissioned. We have put a definition for pipelines taken out of service at § 250.1001 and included the requirements for unburied pipelines in § 250.1741(g).
Comment: An oil industry organization recommended that MMS add “if applicable” before the list of information to include in the platform removal application.
Comment: A commenter recommended that MMS include the requirements of the removal for subsea equipment.
Response: Subsea equipment removals are handled case-by-case by the MMS District offices. Too many variables exist to specify the requirements in the regulations. However, lessees can assume that equipment must be removed unless the requirements of §§ 250.1725 through 250.1728 are met.
Comment: A commenter argued that subsea equipment in water depths greater than 1,000 feet should be allowed to remain on the seafloor as long as it is cleaned and flushed of all hydrocarbons.
Response: MMS believes that § 250.1728 is flexible enough to accommodate this request if the equipment is not an obstruction. However, lessees must still seek approval from the Regional Supervisor. MMS coordinates with the Department of the Navy on these requests, and we keep a list of all objects remaining above the mud line. Also, MMS does not have the authority to allow leaving a partial platform in place. If the platform is not officially converted into an artificial reef, it requires an ocean dumping permit from the Environmental Protection Agency (EPA). MMS believes that wellheads and casing are not part of the platform, and the decision to leave these types of structures in place is similar to abandoning pipelines in place, and does not require an EPA permit.
Comment: Specify the 800-meter water depth in feet also.
Response: MMS will state the water depth both as 800 meters and 2,624 feet throughout the regulation.
Comment: A commenter suggested that a minimum unobstructed water column depth of 300 feet be given as acceptable for marine navigation regarding partial structure removals.
Response: MMS does not have the authority to set specific limitations on partial structure removals because the limitations will be determined by other agencies.
Comment: A commenter suggested that instead of requiring that an unobstructed water column be above the structure, MMS should require that lessees satisfy U.S. Coast Guard (USCG) navigational requirements for the remaining structure.
Response: We agree, and we have changed (b) accordingly. We have also made a change in (a) from the National Artificial Reef Program to the State's artificial reef plan for accuracy.
Comment: An oil industry organization recommended that MMS reduce the required water depth for trawling to 200 feet.
Response: We did not make this change in the final rule because we are also anticipating future fishing and military uses with our requirements because the obstructions would be there for a very long time. We also have determined this criteria in consultation with a representative group of interested parties; therefore, we have not made this change.
In § 250.1741, we have clarified that sensitive biological features must be protected by not trawling closer than 500 feet. This is a current requirement.
Comment: An oil industry organization recommended that MMS limit the requirement for trawling around wells to less than a 200-foot water depth and use a 200-foot radius centered on an exploration or delineation well.
Response: We are maintaining the requirement for 300 feet for both water depth and radius because 200 feet would not protect other users of the OCS. We have determined these requirements in consultation with a representative group of interested parties who are anticipating future needs.
Comment: An oil industry organization recommended that MMS add the flexibility to use diver or remotely operated vehicle (ROV) inspections and video documentation. Many drilling rigs are now equipped with an ROV, which provides for an efficient, reliable inspection of the well site before rig departure.
Comment: A commenter recommended that the lessee should send the clearance report that is required in proposed § 250.1717(g) to MMS, along with the completion report to ensure that all the right paperwork is submitted to MMS on time. Paragraph (g)(6) should be combined with (g).
Response: We agree and have changed the final rule accordingly. Start Printed Page 35402
Comments: A private citizen, a non-profit public interest group, and a government agency suggested that MMS should not state its policy on artificial reefs, since it does not manage the program, and it is controversial in California. Also, paragraph (c) needs to allow for the operator, not the State, to retain liability for the structure if left as an artificial reef. Another commenter said that paragraph (c) unilaterally requires the State agency to take responsibility for the platforms, in perpetuity. Also, another commenter mentioned that an area previously designated as an artificial reef should be considered the number one option for a reef proposal.
Response: MMS deleted proposed § 250.1722 because it is unnecessary to the regulation.
Comment: A commenter said that the rule should address other uses, such as mariculture and research for decommissioned platforms.
Response: Having agreed to delete proposed § 250.1722, there is no need for the suggested change.
Comment: A commenter argued that this paragraph needs to specify that pipelines may be left in place only when they are buried.
Response: If the unburied pipeline is an obstruction, it may not be left in place. This is now covered in § 250.1754.
Comment: A commenter suggested that the rule define the term “hazard.”
Response: We have changed the term “hazard” to “obstruction” because “obstruction” is defined in the regulation. We have also moved the requirement to remove a pipeline that subsequently becomes a hazard (proposed § 250.1725(i)) to § 250.1754 for emphasis and clarity.
(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 new or expanded requirements are written in plain language and designed to ensure that lessees decommission facilities to protect the environment and minimize obstructions to other uses of the OCS. The economic effects of this rule will be minimal. Lessees planning decommissioning activities in the Pacific OCS Region and Alaska OCS Region would be required to plan these activities at least 2 years before production ceases and submit an initial decommissioning application. This will impact an estimated two lessees a year, as shown in Table 1. The cost to develop an initial decommissioning application is estimated at $1,000 per application.
Table 1.—New Reporting Cost for the Initial Decommissioning Application Submitted in the Pacific and Alaska OCS Regions
Cost @ $1,000 per application
Lessees affected
Small Businesses $1,000 1 1
Other Lessees 1,000 1 1
Totals 2,000 2 2
Table 2.—New Requirement Cost for Trawling
Total cost @ $9000 per trawl
Domes trawled
Small Businesses $180,000 20 20 $27,000 3 3
Other Lessees 225,000 10 25 18,000 2 2
Totals 405,000 30 45 45,000 5 5
Table 3.—Total Costs for Both the New Plan and New Trawling Requirement
Domes trawled + plans submitted
Small Businesses $181,000 21 21 $28,000 4 4
Other Lessees 226,000 11 26 19,000 3 3
Totals 407,000 32 47 47,000 7 7
Also, lessees who use domes to protect temporarily abandoned wells would be required to trawl over those domes after they install them. We estimate the cost for trawling would be $9,000 for each of the 45 existing domes and $9,000 to trawl each of the 10 additional domes installed each year. We estimate that 30 lessees will be required to trawl the 45 existing domes, and 5 lessees will trawl the additional 10 domes each subsequent year as shown in Table 2. The total costs are shown in Table 3.
(2) This rule will not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency. The new or expanded requirements are minimal and apply only to the OCS decommissioning activities.
(3) This rule does not significantly alter the budgetary effects or entitlements, grants, user fees, or loan programs or the rights or obligations of their recipients. The new requirements and costs are minimal, and the main purpose of the rule is to write it in plain language.
(4) This rule does not raise novel legal or policy issues. The new requirements are based on the legal authority of the OCS Lands Act and other laws.
The Department certifies that this proposed 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 changes proposed in 30 CFR 250, subpart Q, 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 a small business as having:
Under the SBA's North American Industry Classification System code 211111, Crude Petroleum and Natural Gas Extraction, MMS estimates that there is a total of 1,380 firms that drill oil and gas wells onshore and offshore. Of these, approximately 130 companies are offshore lessees/operators, based on current estimates. According to SBA estimates, 39 companies qualify as large firms, leaving 91 companies qualified as small firms with fewer than 500 employees.
Where there are some additional new or expanded reporting requirements in this rule, they do not impose extensive burdens. The cost to comply with the new requirements is a one-time cost of approximately $9,000 paid to a trawling organization to trawl over domes of temporarily abandoned wells in shallow water. The OCS has approximately 45 of these domes. In subsequent years, we predict that 10 new domes will be trawled over. We estimate that 20 of the 30 lessees that will trawl over the 45 existing domes are small businesses and 3 out of the 5 lessees that will trawl over domes in subsequent years will be small businesses. The cost to the small businesses will be $180,000 the first year and $27,000 each subsequent year, as shown in Table 2 (in the Regulatory Planning and Review section). However, the trawling industry, another small business, will benefit by having less loss to their equipment.
Also, about two lessees per year in the Pacific OCS Region or Alaska OCS Region will need to submit an initial decommissioning plan for a cost of approximately $1,000 to develop each application as shown in Table 1 (in the Regulatory Planning and Review section).
We estimate that one of these lessees will be a small business. These plans are necessary to ensure that early planning is occurring for these upcoming decommissioning activities.
Based on these calculations, this rule has no significant economic impact on small entities.
(a) Does not have an annual effect on the economy of $100 million or more. The main purpose of this rule is to reorganize the requirements and write them in plain language. The new requirements will cost lessees $407,000 for the first year and $47,000 in subsequent years and only a few lessees will be affected.
(b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. The cost to comply with the new requirements is minor and will minimize conflicts with other uses of the OCS.
(c) Does not have a significant adverse effect on competition, employment, investment, productivity, innovation, or ability of U.S.-based enterprises to compete with foreign-based enterprises. The regulation contains a few new requirements that are not burdensome and ensure that decommissioning operations in the OCS are conducted properly.
We examined the proposed rule and these final regulations under section 3507(d) of the PRA. As part of the proposed rulemaking process, we submitted the information collection requirements in the entire proposed subpart Q to OMB for approval. The final regulations do contain minor changes in the collection of information from what was proposed. Therefore, before publication, we again submitted the subpart Q information collection to OMB, and OMB approved them under OMB control number 1010-0142, with a current expiration date of July 31, 2004. An agency may not collect or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid OMB control number.
The title of the collection of information for this final rule is “30 CFR 250, Subpart Q—Decommissioning Activities.” Respondents include approximately 130 Federal OCS oil and gas or sulphur lessees and 106 holders of pipeline rights-of-way. The frequency of response is on occasion or annually, depending upon the requirement. Responses to this collection of information are mandatory. MMS will protect proprietary information according to the Freedom of Information Act and 30 CFR 250.196, “Data and information to be made available to the public.”
This rulemaking primarily consolidates information collection requirements on decommissioning from our current regulations in 30 CFR 250, subparts G, I, and J (approved under OMB control numbers 1010-0079, 1010-0058, and 1010-0050, respectively). The approved burdens for those subparts will be correspondingly reduced when the new subpart Q regulations take effect. The proposed rulemaking imposed only one new information collection burden. Section 250.1726 (proposed § 250.1705) requires submission of an initial decommissioning application in the Pacific OCS Region and Alaska OCS Start Printed Page 35404Region, which we estimate will require 20 burden hours per application.
Most of the section numbers in the final regulations have changed from the proposed rule, and information collection requirements are now in different sections. The final regulations also are more specific with respect to several reporting requirements. These new burdens were included in the subsequent information collection submission that OMB approved.
We estimate the total annual reporting “hour” burden for the final rule to be 6,071 hours. There are no recordkeeping requirements. There are no paperwork “non-hour cost” burdens associated with these regulations. Following is a breakdown of the hour burden estimate.
1704(f); 1712; 1716; 1717; 1721(a), (f), (g); 1722(a),(b), (d); 1723(b); 1743(a) Submit form MMS-124 to plug wells; provide subsequent report; request alternate depth departure; request procedure to protect obstructions above seafloor; report results of trawling; certify area cleared of obstructions; remove casing stub or mud line suspension equipment and subsea protective covering; or other departures. Burden included under 1010-0045. 0
1713 (Final New) Notify MMS 48 hours before beginning operations to permanently plug a well 15 minutes 100 notices 25
1721(e); 1722(e), (h)(1); 1741(c) Identify and report subsea wellheads, casing stubs, or other obstructions; mark wells protected by a dome; mark location to be cleared as navigation hazard U.S. Coast Guard requirement. 0
1722(c), (g)(2) (Final New) Notify MMS within 5 days if trawl does not pass over protective device or causes damages to it; or if inspection reveals casing stub or mud line suspension is no longer protected 15 minutes 10 notices 3
1722(f), (g)(3) Submit annual report on plans for re-entry to complete or permanently abandon the well and inspection report. 2 hours 75 reports 150
1722(h) (Final New) Request waiver of trawling test 2 hours 2 requests 4
1704(a); 1726 (Proposed New) Submit initial decommissioning application in Pacific OCS and Alaska OCS Regions 20 hours 2 applications 40
1704(b); 1725; 1727; 1728; 1730 Submit final application to remove platform or other subsea facility structures (including alternate depth departure) or approval to maintain, to conduct other operations, or to convert to artificial reef 8 hours 124 applications 992
1725(e) (Final New) Notify MMS 48 hours before beginning removal of platform and other facilities 15 minutes 124 notices 31
1704(c); 1729 (Final New) Submit post platform or other facility removal report 2 hours 124 reports 248
1740(b)(5), (c)(3); 1740(g)(1); 1743(b) Request approval of well site, platform, or other facility clearance method; including contacting pipeline owner or operator 4 hours 125 requests 500
1743(b) Verify permanently plugged well, platform, or other facility removal site cleared of obstructions and submit certification letter 12 hours 124 verifications 1,488
1704(d); 1751; 1752 Submit application to decommission pipeline in place or remove pipeline 8 hours 257 applications 2,056
1753 (Final New) Submit post pipeline decommissioning report 2 hours 257 reports 514
1700 through 1754 General departure and alternative compliance requests not specifically covered elsewhere in subpart Q regulations 2 hours 10 requests 20
Total Reporting 1,334 6,071
According to Executive Order 13132, this rule does not have Federalism implications. This rule does not substantially and directly affect the relationship between the Federal and State governments. The final rule revises existing operation regulations. It does not prevent any lessee, operator, or drilling contractor from performing operations on the OCS, provided they follow the regulations. This rule is updating decommissioning requirements and will not impose costs on States or localities.
According to Executive Order 12630, the final rule does not represent a governmental action capable of interference with constitutionally protected property rights. The new requirements are minor and deal with minimizing obstructions to other uses of the OCS. Thus, a Takings Implication Assessment need not be prepared according to Executive Order 12630, Government Action and Interference with Constitutionally Protected Property Rights.
This rule is not a significant rule and is not subject to review by OMB under Executive Order 13211. The rule does not have a significant effect on energy supply, distribution, or use because it will not reduce crude oil supply or production. It also will not increase energy prices or increase dependence on foreign supplies. The new or expanded requirements are written in plain language and designed to ensure that lessees decommission facilities to protect the environment and minimize Start Printed Page 35405obstructions to other uses of the OCS. The economic effects of this rule will be minimal.
This rule does not impose an unfunded mandate on State, local, or tribal governments or the private sector of more than $100 million per year. This rule was mainly updated to include plain language and to give additional guidance. It contains very few new requirements, and it will not have a significant or unique effect on State, local, or tribal governments or the private sector. Therefore, a statement containing the information required by the UMRA (2 U.S.C. 1531 et seq.) is not required.
2. In § 250.102, the following changes are made:
a. In § 250.102, in the table in paragraph (b), line (1) is removed.
b. Lines 2 through 13 are redesignated lines 1 through 12 respectively.
c. A new line 13 is added to read as follows:
Table.—Where To Find Information for Conducting Operations
For information about—
(13) Permanently plugging wells § 250.1710
3. In § 250.199, the following changes are made:
a. In the table in paragraph (e), entry (7) is removed.
b. Entries (8) through (16) are renumbered (7) through (15).
c. A new entry (16) is added to read as follows:
(16) Subpart Q, Decommissioning Activities (1010-0142) To determine that decommissioning activities comply with regulatory requirements and approvals. To ensure that site clearance and platform or pipeline removal are properly performed to protect marine life and the environment and do not conflict with other users of the OCS.
4. Subpart G ( §§ 250.700-250.704) is removed and reserved.
§ 250.913
5. Section 250.913 is removed.
6. In § 250.1001, the following definition is added in alphabetical order:
7. Section 250.1006 is revised to read as follows:
§ 250.1006
How must I decommission and take out of service a DOI pipeline?
(a) The requirements for decommissioning pipelines are listed in § 250.1750 through § 250.1754.
(b) The table in this section lists the requirements if you take a DOI pipeline out of service:
If you have the pipeline out of service for:
(1) 1 year or less Isolate the pipeline with a blind flange or a closed block valve at each end of the pipeline.
(2) More than 1 year but less than 5 years Flush and fill the pipeline with inhibited seawater.
(3) 5 or more years Decommission the pipeline according to §§ 250.1750-250.1754.
Start Printed Page 35406
8. In § 250.1007 paragraph (c) is removed.
9. In § 250.1014, the second sentence is revised to read as follows:
Relinquishment of a right-of-way grant.
* * * It must contain those items addressed in §§ 250.1751 and 250.1752 of this part. * * *
10. Subpart Q is added to read as follows:
250.1700 250.1701 250.1702 250.1703 250.1704
250.1710 250.1711 250.1712 250.1713 250.1714 250.1715 250.1716 250.1717
250.1721 250.1722 250.1723
250.1725 250.1726 250.1727 250.1728 250.1729 250.1730
250.1740 250.1741 250.1742 250.1743
250.1750 250.1751 250.1752 250.1753 250.1754 Start Authority
§ 250.1700
What do the terms “decommissioning”, “obstructions”, and “facility” mean?
(2) Returning the lease or pipeline right-of-way to a condition that meets the requirements of regulations of MMS and other agencies that have jurisdiction over decommissioning activities.
(b) Obstructions means structures, equipment, or objects that were used in oil, gas, or sulphur operations or marine growth that, if left in place, would hinder other users of the OCS. Obstructions may include, but are not limited to, shell mounds, wellheads, casing stubs, mud line suspensions, well protection devices, subsea trees, jumper assemblies, umbilicals, manifolds, termination skids, production and pipeline risers, platforms, templates, pilings, pipelines, pipeline valves, and power cables.
(c) Facility means any installation other than a pipeline used for oil, gas, or sulphur activities that is permanently or temporarily attached to the seabed on the OCS. Facilities include production and pipeline risers, templates and pilings, and any other facility or equipment that constitutes an obstruction such as jumper assemblies, termination skids, umbilicals, anchors, and mooring lines.
§ 250.1701
Who must meet the decommissioning obligations in this subpart?
(c) In this subpart, the terms “you” or “I” refer to lessees and owners of operating rights, as to facilities installed under the authority of a lease, and to right-of-way holders as to facilities installed under the authority of a right-of-way.Start Printed Page 35407
§ 250.1702
When do I accrue decommissioning obligations?
§ 250.1703
What are the general requirements for decommissioning?
(a) Get approval from the appropriate District Supervisor before decommissioning wells and from the Regional Supervisor before decommissioning platforms and pipelines or other facilities;
(b) Permanently plug all wells;
(c) Remove all platforms and other facilities;
(e) Clear the seafloor of all obstructions created by your lease and pipeline right-of-way operations; and
(f) Conduct all decommissioning activities in a manner that is safe, does not unreasonably interfere with other uses of the OCS, and does not cause undue or serious harm or damage to the human, marine, or coastal environment.
§ 250.1704
When must I submit decommissioning applications and reports?
You must submit decommissioning applications and receive approval and submit subsequent reports according to the table in this section.
(b) Final removal application for a platform or other facility Before removing a platform or other facility in the Gulf of Mexico OCS Region, or not more than 2 years after facility the submittal of an initial platform removal application to the Pacific OCS Region and the Alaska OCS Region Include information required under § 250.1727.
§ 250.1710
When must I permanently plug all wells on a lease?
§ 250.1711
When will MMS order me to permanently plug a well?
MMS will order you to permanently plug a well if that well:
§ 250.1712
What information must I submit before I permanently plug a well or zone?
Before you permanently plug a well or zone, you must submit form MMS-124, Sundry Notices and Reports on Wells, and receive approval. A request for approval must contain the following information:
(e) A description of the work (including any measures proposed to protect archaeological or biological bottom features from anchor damage); and
(14) Your plans to protect archaeological and sensitive biological features during plugging operations, including a brief assessment of the environmental impacts of the plugging operations and the procedures and Start Printed Page 35408mitigation measures you will take to minimize such impacts.
§ 250.1713
Must I notify MMS before I begin well plugging operations?
You must notify the appropriate District Supervisor at least 48 hours before beginning operations to permanently plug a well.
§ 250.1714
What must I accomplish with well plugs?
§ 250.1715
How must I permanently plug a well?
(a) You must permanently plug wells according to the table in this section. The District Supervisor may require additional well plugs as necessary.
(3) perforated zone that is currently open and not previously squeezed or isolated A (i) A method to squeeze cement to all perforations; (ii) A cement plug set by the displacement method, at least 100 feet above to 100 feet below the perforated interval, or down to a casing plug, whichever is less; or (iii) If the perforated zones are isolated from the hole below, you may use any of the plugs specified in paragraphs (A) through (E) of this paragraph instead of those specified in paragraphs (3)(i) and (3)(ii) of this section:
(2) A pump pressure of at least 1,000 pounds per square inch. Ensure that the pressure does not drop more than 10 percent in 15 minutes. The District Supervisor may require you to tests other plug(s).
§ 250.1716
To what depth must I remove wellheads and casings?
(a) Unless the District Supervisor approves an alternate depth under paragraph (b) of this section, you must remove all wellheads and casings to at least 15 feet below the mud line.
(b) The District Supervisor may approve an alternate removal depth if:
(2) You determine, and MMS concurs, that you must use divers, and the seafloor sediment stability poses safety concerns; or
Within 30 days after you permanently plug a well, you must submit form MMS-124, Sundry Notices and Reports Start Printed Page 35409on Wells (subsequent report), and include the following information:
(a) Information included in § 250.1712 with a final well schematic;
(b) Description of the plugging work;
(c) Nature and quantities of material used in the plugs; and
(d) If you cut and pulled any casing string, the following information:
(1) A description of the methods used (including information on explosives, if used);
(3) Casing removal depth.
§ 250.1721
If I temporarily plug a well that I plan to re-enter, what must I do?
You may temporarily plug a well when it is necessary for proper development and production of a lease. To temporarily plug a well, you must do all of the following:
(a) Submit form MMS-124, Sundry Notices and Reports on Wells, and the applicable information required by § 250.1712 to the appropriate District Supervisor and receive approval;
(b) Adhere to the plugging and testing requirements for permanently plugged wells listed in the table in § 250.1715, except for § 250.1715 (a)(8). You do not need to sever the casings, remove the wellhead, or clear the site;
(d) Set a retrievable or a permanent-type bridge plug or a cement plug at least 100 feet long in the inner-most casing. The top of the bridge plug or cement plug must be no more than 1,000 feet below the mud line. MMS may consider approving alternate requirements for subsea wells case-by-case;
(e) Identify and report subsea wellheads, casing stubs, or other obstructions that extend above the mud line according to U.S. Coast Guard (USCG) requirements; and
(f) Except in water depths greater than 300 feet, protect subsea wellheads, casing stubs, mud line suspensions, or other obstructions remaining above the seafloor by using one of the following methods, as approved by the Regional or District Supervisor:
(3) A subsea protective device that meets the requirements in § 250.1722.
(g) Within 30 days after you temporarily plug a well, you must submit form MMS-124, Sundry Notices and Reports on Wells (subsequent report), and include the following information:
(1) Information included in § 250.1712 with a well schematic;
(2) Information required by § 250.1717(b), (c), and (d); and
(3) A description of any remaining subsea wellheads, casing stubs, mudline suspension equipment, or other obstructions that extend above the seafloor.
§ 250.1722
If I install a subsea protective device, what requirements must I meet?
If you install a subsea protective device under § 250.1721(f), you must install it in a manner that allows fishing gear to pass over the obstruction without damage to the obstruction, the protective device, or the fishing gear.
(a) Use form MMS-124, Sundry Notices and Reports on Wells to request approval from the appropriate District Supervisor to install a subsea protective device.
(b) The protective device may not extend more than 10 feet above the seafloor (unless MMS approves otherwise).
(c) You must trawl over the protective device when you install it (adhere to the requirements at § 250.1740(a)). If the trawl does not pass over the protective device or causes damage to it, you must notify the appropriate District Supervisor within 5 days and perform remedial action within 30 days of the trawl;
(d) Within 30 days after you complete the trawling test described in paragraph (c) of this section, submit a report to the appropriate District Supervisor using form MMS-124, Sundry Notices and Reports on Wells, that includes the following:
(g) Ensure that all subsea wellheads, casing stubs, mud line suspensions, or other obstructions in water depths greater than 300 feet remain protected.
(2) If the inspection reveals that a casing stub or mud line suspension is no longer properly protected, or if the trawl does not pass over the subsea protective covering without causing damage to the covering, the casing stub or mud line suspension equipment, or the trawl, notify the appropriate District Supervisor within 5 days, and perform the necessary remedial work within 30 days of discovery of the problem.
§ 250.1723
What must I do when it is no longer necessary to maintain a well in temporary abandoned status?
If you or MMS determines that continued maintenance of a well in a temporarily plugged status is not necessary for the proper development or production of a lease, you must:
(a) Promptly and permanently plug the well according to § 250.1715;
(b) Remove any casing stub or mud line suspension equipment and any subsea protective covering. You must submit a request for approval to perform such work to the appropriate District Start Printed Page 35410Supervisor using form MMS-124, Sundry Notices and Reports on Wells; and
(c) Clear the well site according to § 250.1740 through § 250.1742.
§ 250.1725
When do I have to remove platforms and other facilities?
(a) You must remove all platforms and other facilities within 1 year after the lease or pipeline right-of-way terminates, unless you receive approval to maintain the structure to conduct other activities. Platforms include production platforms, well jackets, single-well caissons, and pipeline accessory platforms.
(b) Before you may remove a platform or other facility, you must submit a final removal application to the Regional Supervisor for approval and include the information listed in § 250.1727.
§ 250.1726
When must I submit an initial platform removal application and what must it include?
An initial platform removal application is required only for leases in the Pacific OCS Region or the Alaska OCS Region. It must include the following information:
§ 250.1727
What information must I include in my final application to remove a platform or other facility?
You must submit a final application to remove a platform or other facility to the Regional Supervisor for approval. This requirement applies to leases in all MMS Regions. If you are proposing to use explosives, provide three copies of the application. If you are not proposing to use explosives, provide two copies of the application. Include the following information in the final removal application, as applicable:
(1) Platform Name/MMS Complex ID Number;
§ 250.1728
To what depth must I remove a platform or other facility?
(2) You determine, and MMS concurs, that you must use divers and the seafloor sediment stability poses safety concerns; or
(c) A statement signed by your authorized representative that certifies that the types and amount of explosives you used in removing the platform or other facility were consistent with those Start Printed Page 35411set forth in the approved removal application.
§ 250.1730
When might MMS approve partial structure removal or toppling in place?
The Regional Supervisor may grant a departure from the requirement to remove a platform or other facility by approving partial structure removal or toppling in place for conversion to an artificial reef or other use if you meet the following conditions:
§ 250.1740
How must I verify that the site of a permanently plugged well, removed platform, or other removed facility is clear of obstructions?
(a) For a site in water depths less than 300 feet, you must drag a trawl over the site.
(b) For a well site in water depths 300 feet or more, you may:
(5) Use another method approved by the District Supervisor if the particular site conditions warrant.
(c) For a platform or other facility site in water depths 300 feet or more, you may:
(3) Use another method approved by the District Supervisor if the particular site conditions warrant.
§ 250.1741
If I drag a trawl across a site, what requirements must I meet?
If you drag a trawl across the site in accordance with § 250.1740, you must meet all of the requirements of this section.
You must drag the trawl across a—
(1) Well site 300-foot-radius circle centered on the well location.
(2) Subsea well site 600-foot-radius circle centered on the well location.
(3) Platform site 1,320-foot-radius circle centered on the location of the platform.
(4) Single-well caisson, well protector jacket, template, or manifold 600-foot-radius circle centered on the structure location.
(b) You must trawl 100 percent of the limits described in § 250.1741 in two directions.
(4) Unburied active pipelines in the trawl area that are smaller than 8 inches in diameter and have no obstructions present parallel to the pipeline
§ 250.1742
What other methods can I use to verify that a site is clear?
(c) An ROV ensure (remotely operated vehicle) ensure that the ROV camera records videotape over 100 percent of the appropriate grid area listed in § 250.1741(a) Ensure that the ROV uses a pattern of concentic circles or parallel lines spaced no more than 10 feet apart.
(a) For a well site, you must submit to the appropriate District Supervisor within 30 days after you complete the verification activities a form MMS-124, Sundry Notices and Reports on Wells, to include the following information:
(b) For a platform or other facility site, you must submit the following information to the appropriate District Supervisor within 30 days after you complete the verification activities:
(2) A letter signed by an authorized official of the company that performed the verification work for you certifying that they cleared the platform or other facility site area of all obstructions;
§ 250.1750
When may I decommission a pipeline in place?
§ 250.1751
How do I decommission a pipeline in place?
(a) Submit a pipeline decommissioning application in triplicate to the Regional Supervisor for approval that includes the following information:
§ 250.1752
How do I remove a pipeline?
(a) Submit a pipeline removal application in triplicate to the Regional Supervisor for approval that includes the following information:
§ 250.1753
After I decommission a pipeline, what information must I submit?
§ 250.1754
When must I remove a pipeline decommissioned in place?
11. The authority citation for part 256 continues to read as follows:
Authority: 42 U.S.C. 6213, 43 U.S.C. 1331 et seq.
§ 256.56
12. In § 256.56(a)(1), the citation “250.700” is revised to read “250.1703”.
§ 256.62
13. In § 256.62(e)(2), the citation “part 250”, subpart G” is revised to read “part 250, subpart Q”.
[FR Doc. 02-11640 Filed 5-16-02; 8:45 am]