Final Rule (FR 19640)

Dated: April 6, 2006. received are available for review on the the reporting of only the information we Brian D. Montgomery, MMS Web site at: http://www.mms.gov/ need to oversee the OCS program. Assistant Secretary for Housing, Federal federalregister/PublicComments/ Several commenters, including the Housing Commissioner. rulecomm.htm. OOC, objected to the multiple [FR Doc. 06–3646 Filed 4–14–06; 8:45 am] Most of the commenters stated that timeframes for verbal and written BILLING CODE 4210–67–P the proposed rule was overly reporting of incidents as being too prescriptive and burdensome to the complicated and burdensome. We agree industry and MMS. In addition, most with these comments, and have revised DEPARTMENT OF THE INTERIOR commenters expressed concern that the rule to require immediate reporting MMS and the U.S. Coast Guard (USCG) of certain incidents via oral Minerals Management Service were not making a sufficient effort to communication, with a written follow- coordinate incident reporting. First, in up within 15 calendar days. In addition, 30 CFR Part 250 this final rule we have scaled back most the rule requires written reporting of of the requirements contained in the certain less severe incidents within 15 RIN 1010–AC57 calendar days. We have also eliminated proposed rule that the commenters Oil and Gas and Sulphur Operations in asserted were overly burdensome. With the reporting forms contained in the the Outer Continental Shelf—Incident regard to the second issue raised in proposed rule. This final rule allows the Reporting Requirements these comments, this final rule reporting company to use its own format addresses only MMS’ incident reporting for the written report, or a form AGENCY: Minerals Management Service requirements regarding incidents that prepared for another agency, as long as (MMS), Interior. occur during OCS oil and gas the required information is included. ACTION: Final rule. operations. However, MMS allows the The proposed rule required that operator to submit USCG forms where written reports be submitted SUMMARY: This final rule revises the they contain all the information electronically. We have dropped that MMS requirements for reporting required in these regulations. In requirement. The final rule does not incidents associated with Outer addition, we will continue to work with specify or mention any method. You Continental Shelf (OCS) oil and gas and the USCG to coordinate our incident may submit written reports in whatever sulphur operations. The revisions will reporting requirements. manner (mail, courier, personal clarify the requirements, and provide In addition, the OOC commented that delivery, fax, or e-mail) you choose. more precise definitions and reporting MMS does not say how the information MMS may consider electronic submittal timeframes. This will result in a more collected by this rule will be used. of information in future rulemaking. consistent incident reporting program Among other uses, the information Several commenters, including the and the collection of more reliable required by the final rule will be used OOC, stated that the personnel injury incident information. by MMS in: categories in the proposed rule were not DATES: Effective Date: This rule becomes • Considering regulatory changes, realistic for reporting purposes, and that effective on July 17, 2006. • Determining research studies, they were too subjective. We agree with FOR FURTHER INFORMATION CONTACT: • Identifying unsafe procedures, these comments, and have simplified Richard Ensele, Rules and Standards • Working with industry to develop the categories. This rule requires the Branch, (703) 787–1583. standards, immediate reporting of all injuries that • Compiling accident statistics and require the evacuation of the injured SUPPLEMENTARY INFORMATION: On July 8, trend analyses, person(s) from the facility to shore or to 2003, MMS published a Notice of another offshore facility. A written Proposed Rulemaking (68 FR 40585), • Deciding which incidents are serious enough to form an accident follow-up report within 15 calendar titled ‘‘Oil and Gas and Sulphur days is required for any injury that Operations in the Outer Continental investigation panel, • Preparing operator performance results in days away from work, Shelf—Incident Reporting restricted work, or job transfer. Requirements.’’ The proposed rule had statistics, and In addition, the OOC and others an initial 90-day comment period that • Evaluating Safety Award for expressed concern that the proposed was extended by 60 days (68 FR 44910, Excellence (SAFE) candidates. rule may conflict with the Health July 31, 2003) to December 5, 2003. The One commenter stated that the Insurance Portability and proposed rule addressed amendments to proposed regulations did not go far Accountability Act of 1996 (HIPAA) in MMS’ regulations related to reporting enough in reporting information that it may require employee health accidents and other incidents on concerning occupational safety. This information to be disclosed. We agree platforms and other facilities on oil and commenter recommended that MMS with these concerns. This rule does not gas and sulphur leases and related require all employers to report require that any employee identification rights-of-way on the OCS. occupational injuries and illnesses in information be reported to MMS. When accordance with criteria identical to Comments on the Proposed Rule a reportable injury occurs, this rule those of the Occupational Safety and requires that the operator/lessee report We received 19 sets of comments on Health Administration (OSHA). There the following: the proposed rule. Three of the are employers on the OCS other than • Date and time of occurrence, commenters were industry trade lessees and operators. This regulation, • Operator and operator’s organizations (Offshore Operators however, applies only to lessees and representative name and telephone Committee (OOC), International operators on the OCS. The regulations number, Association of Drilling Contractors require the lessees and operators to • Contractor and contractor’s

rmajette on PROD1PC67 with RULES (IADC), and National Ocean Industries report all pertinent incidents, regardless representative name and telephone Association (NOIA)). We also received of whose employees were involved. The number, comments from one individual, two OSHA reporting requirements contain • Lease number, OCS area, and block, drilling contractors, ten operators, and information that MMS does not need to • Platform/facility name and number, one consultant. All of the comments perform its mission. We are requiring • Type of incident or injury/fatality,

Federal Register / Vol. 71, No. 73 / Monday, April 17, 2006 / Rules and Regulations 19641

• Operation or activity at time of The proposed rule maintained the cause serious injuries or deaths. By incident, and current MMS requirement to report H2S collecting the information on gas • Description of the incident, damage, releases that result in a 15-minute-time­ releases that result in equipment or or injury/fatality. weighted average atmospheric process shut-in, we can track the trends, None of these items requires concentration of H2S of 20 parts per and possibly decrease the number of gas employee health information to be million (ppm) or more. The OOC releases. disclosed. MMS does not need any commented that ‘‘While we recognize The OOC commented on the proposed personal information, including the that this is a current requirement in 30 rule requirement to report incidents that identification of any injured personnel. CFR 250.490(l), it is unclear how the involved personnel mustering for The OOC submitted comments operator determines that a 15-minute evacuation for reasons not related to concerning the definitions in the time-weighted average atmospheric weather. They indicated that in many proposed rule. The definitions in the concentration of H2S of 20 ppm or more cases, visitors or non essential proposed rule were part of the reason occurs.’’ We did not make any changes personnel are required to report to the for the complexity of that rule. By to the rule as a result of this comment. muster station whenever an alarm is simplifying the rule, we have eliminated Time weighted average is a recognized sounded since they have no most of those definitions. The standard method for defining and responsibilities in responding to the definitions in this rule are contained in measuring permissible exposure limits alarm. They recommended that a the sections where the terms appear. We to ensure the safety of personnel. written report should only be required defined the terms ‘‘loss of well control’’, Because of the extreme toxicity of H2S, if personnel were actually evacuated. ‘‘structural damage’’, ‘‘collision’’, and detection and monitoring equipment on We agree that incidents where only ‘‘property damage.’’ The definition of a facility must be capable of alerting visitors to the facility muster for ‘‘loss of well control’’ has been modified personnel of sustained atmospheric evacuation should not be reported. We from the proposed rule to clarify that all concentrations of 20 ppm. Operators have reworded the requirement so that flows through a diverter are to be who have further questions about a written report is required when reported. The definition of ‘‘structural determining H2S concentrations to meet ‘‘operations’’ personnel muster for damage’’ is new. The definition of this requirement may contact the evacuation for reasons not related to ‘‘collision’’ was added so that only those appropriate District office for guidance. weather and drills. This should The requirement to report these H2S eliminate the need to report incidents collisions occurring at a facility be releases applies only to areas that have where visitors to the facility muster for reported. We simplified the definition of been classified ‘‘H2S present’’ or ‘‘H2S evacuation or when personnel muster ‘‘property damage’’ for those incidents unknown’’ as defined by the approved for non-emergency reasons. requiring an estimate of the damage area classification required by amount. Comparison of this Final Rule to the § 250.490(c). These areas are required to The OOC suggested that the phrase have H2S sensors for measuring Current Regulation ‘‘issued by MMS’’ be added after the atmospheric H2S concentrations. The current regulation on accident term ‘‘permit’’ in proposed The proposed rule would have reporting, § 250.191, requires operators, § 250.187(a)(1) (§ 250.187(b) in the final required the reporting of any lessees, easement holders, pipeline rule) to clarify that the requirement unintentional release of gas at an OCS right-of-way holders, and other permit applies only to operations conducted facility that could, without corrective holders to report all serious accidents, under MMS permitted activities. We action, raise hydrocarbon or other gas any death or serious injury, and all fires, agree with this suggestion and have concentrations to the lower flammable explosions, and blowouts. This final inserted the phrase. In addition, the (explosive) limit. Gas releases do not rule broadens the scope of serious OOC suggested that MMS accept USCG include events where gas is successfully accidents and serious injuries to include reports when duplicative reports are released through the vent or flare those incidents that had the potential to required. MMS agrees that the operator system. The OOC commented that it be serious. MMS is requiring reporting may submit USCG forms to MMS if they would not be clear how the operator is down to this level to learn more about contain all of the information required to determine if an unintentional release the causes of all incidents. MMS in these regulations. We have changed could raise the concentration to the considers these less serious incidents to the rule accordingly. lower explosive limit. They went on to be the ‘‘near misses’’ that could have The OOC commented on the say that the gas detectors in certain resulted in more serious consequences. definition of Loss of Well Control. OOC areas of the platform would cause the This final rule still requires the indicated that planned well fluid flows system to shut-in if the lower explosive reporting of all deaths, fires, explosions, through the diverter systems are not limit concentration was reached in and blowouts. MMS considers the unexpected or uncontrolled flows. OOC those areas. They also said that those following incidents to be serious does not consider these events to be a shut-in incidents could be reported to accidents or accidents that had the loss of well control and recommended MMS, but that would be burdensome on potential to be serious: that planned flows through the diverter both industry and MMS, and serve no • Injuries that require the evacuation not be reported. Planned flows through purpose in improving safety on of the injured person(s) from the facility the diverter system are not authorized platforms. We have simplified the to shore or to another offshore facility by Federal regulations. The use of the regulation to require the reporting of (oral notification), diverter system is for responding to those gas releases resulting in • Injuries that resulted in days away unexpected well conditions and equipment or process shut-in. We from work, restricted work, or job minimizing the risk of fires or wellbore disagree that this information would transfer (written report), cratering so that personnel can evacuate serve no purpose in improving safety on • Reportable releases of hydrogen

rmajette on PROD1PC67 with RULES safely. A well that is flowing to the platforms. OCS platforms have sulfide (H2S) gas, as defined in atmosphere is not ‘‘controlled.’’ We numerous sources of ignition, and there § 250.490(l), have modified the definition to clarify are many small fires reported on these • Incidents in which a vessel or that all incidents involving flow through facilities. Small fires have the potential helicopter collides with an OCS facility a diverter are to be reported. to become major incidents that could or another vessel at an OCS facility that

result in property or equipment damage injuries that resulted in time away from work with the USCG to eliminate the greater than $25,000, work, restricted work, or job transfer. duplicative reporting. This rule may be • Incidents involving structural We estimate that there will be a very revised if the two agencies agree on a damage to an OCS facility, minor increase in the number of loss of joint rulemaking to eliminate the • Incidents involving cranes, well control incidents (blowouts) overlap. personnel handling, or materials reported due to this rule. The term had Regulatory Flexibility Act (RFA) handling equipment, never been defined in the regulations • Incidents that damage or disable before. There are very few of these The Department of the Interior safety systems or safety equipment, incidents each year. certifies that this rule will not have a • Incidents that require operational significant economic effect on a Procedural Matters substantial number of small entities as personnel to muster for evacuation for reasons not related to weather or drills, Regulatory Planning and Review defined under the RFA (5 U.S.C. 601 et • Gas releases that initiate equipment (Executive Order 12866) seq.). A regulatory flexibility analysis is not required. Accordingly, a Small or process shutdown, and This document is not a significant Entity Compliance Guide is not • Other incidents resulting in rule, and is not subject to review by the required. property or equipment damage greater Office of Management and Budget under This rule applies to all lessees/ than $25,000. Executive Order 12866. operators and pipeline right-of-way Some of the incidents described above a. This rule will not have an effect of holders operating on the OCS. Lessees/ are already reported by the industry. $100 million or more on the economy. operators fall under the Small Business These incidents usually occur with It will not adversely affect in a material Administration’s North American other reportable incidents such as way the economy, productivity, Industry Classification System (NAICS) fatalities, injuries, fires, explosions, or competition, jobs, the environment, code 211111, Crude Petroleum and blowouts. Our intent in requiring the public health or safety, or State, local, Natural Gas Extraction. Under this reporting of all of these incidents is to or tribal governments or communities. NAICS code, companies with less than catch the ‘‘near misses’’ that do not The rule will require additional 500 employees are considered small result in fatalities, injuries, fires, reporting of incidents by operators and businesses. MMS estimates that 130 explosions, or blowouts, but that could pipeline right-of-way holders, but the lessees/operators explore for and have resulted in serious outcomes. We financial effect will be well under the produce oil and gas on the OCS; estimate that there could be an increase threshold listed above. In the proposed approximately 70 percent of them (91 of up to 351 reports per year due to the rule, we estimated that start up costs for companies) fall into the small business new requirement to report the incidents electronic reporting of incidents would category. listed above. This is based on the results be approximately $491,000. We dropped A pipeline company (non-producer) is of the Safety and Environmental that proposed provision, so that a small entity if it is a liquid pipeline Management Program (SEMP) voluntary estimated cost no longer applies. See the company with fewer than 1,500 performance measures reporting during analysis below under Regulatory employees, or a natural gas pipeline the years 1996 through 2003 for injuries, Flexibility Act for specific information company with gross annual receipts of and internal estimates for the other on estimated costs of compliance. $25 million or less. MMS’s database incidents listed above. During that b. This rule will not create a serious indicates that there are 88 pipeline period, the industry reported an average inconsistency or otherwise interfere right-of-way holders who do not own an of 337 lost workday injury incidents per with an action taken or planned by interest in any oil and gas leases on the year. Therefore, we estimate that the another agency. This rule addresses OCS. Fifty-seven of these companies are first two items listed above (injuries that MMS’ incident reporting requirements either major energy companies (large oil required evacuation from the facility, only. It will have no effect on any other and gas or pipeline transmission and injuries that resulted in days away agency. The MMS and the USCG companies), or wholly owned from work, restricted work, or job attempted to coordinate overlapping subsidiaries of these companies. transfer) could require up to 291 incident reporting requirements, but Another 13 entities were either formed additional injury reports. We estimate were unsuccessful. We will continue by partnerships among major producers that the other eight items listed above efforts to coordinate with the USCG, and and transporters or have ‘‘arms-length’’ could require an additional 60 incident