Update of Documents Incorporated by Reference

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC55

Update of Documents Incorporated by Reference

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: MMS is updating one document incorporated by reference and

adding a new document incorporated by reference in regulations

governing oil and gas and sulphur operations in the Outer Continental

Shelf (OCS). The new editions of these documents incorporated by

reference will ensure that lessees use the best available and safest

technologies while operating in the OCS. The updated document, with

Errata Change dated August 17, 1998, is the Second Edition of the

American Petroleum Institute's (API) Recommended Practice for

Classification of Locations for Electrical Installations at Petroleum

Facilities Classified as Class I, Division 1 and Division 2 (API RP

500). The new document, with Errata Change dated August 17, 1998, is

the First Edition of the API's Recommended Practice for Classification

of Locations for Electrical Installations at Petroleum Facilities

Classified as Class I, Zone 0, Zone 1, and Zone 2 (API RP 505).

DATES: This rule is effective February 3, 2000. The incorporation by

reference of publications listed in the regulation is approved by the

Director of the Federal Register as of February 3, 2000.

FOR FURTHER INFORMATION CONTACT: Fred Gray, Operations Analysis Branch,

at (703) 787-1027.

SUPPLEMENTARY INFORMATION: On March 19, 1999, we published a Notice of

Proposed Rulemaking (64 FR 13535), titled ``Update of Documents

Incorporated by Reference,'' revising the table in 30 CFR 250.101(e);

250.403(b); 250.802(e)(4)(i); 250.803(b)(9)(i); 250.1628(b)(3) and

(d)(4)(i); and 250.1629(b)(4)(i). Our 90-day comment period closed on

June 17, 1999. We received four positive, supportive comments. This

final rule amends the seven foregoing regulations. Please note that our

final regulations revising 30 CFR 250, subpart A, relocated

Sec. 250.101(e) to 250.198(e) and Sec. 250.403(b) to 250.114(a). This

final rule reflects those changes.

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 were 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. After the

effective date of this rule, 85 private sector consensus standards will

be incorporated by reference into the offshore operating regulations.

The regulations found at 1 CFR part 51 govern how we 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.

Comments on the Rule

We received comments from Noble Drilling Services, Inc.; Shell

Offshore Inc. on behalf of itself and other affiliates of Shell Oil

Company; Mahl & Associates, Inc.; and the International Association of

Drilling Contractors. All commenters support the proposed rule

incorporating by reference the two API documents.

Procedural Matters

This is a very simple rule. The rule's purpose is to update one

document that is currently incorporated by reference in the regulations

and to add one additional document incorporated by reference. The

differences between the newer document and the older document are very

minor. The minor differences between the newer and older document will

not cause a significant economic effect on any entity (small or large).

Similarly, the addition of the new document, API RP 505, will not have

a significant effect on any entity (small or large). Therefore, this

regulation's impact on the entire industry is minor.

Federalism (Executive Order (E.O. 13132)

According to E.O. 13132, this rule does not have Federalism

implications. This rule does not substantially and directly affect the

relationship between the Federal and State governments. This rule does

not impose costs on States or localities. The rule simply addresses

offshore structure design methods for lessee/operator consideration.

Takings Implication Assessment (E.O. 12630)

According to E.O. 12630, this rule does not have significant

Takings Implications. A Takings Implication Assessment is not required.

Regulatory Planning and Review (E.O. 12866)

This document is not a significant rule and is not subject to

review by the Office of Management and Budget under E.O. 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 minor 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. This rule

simply grants lessee/operator additional flexibility when designing an

offshore structure and will not affect any action of 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, because the documents do not address or affect any of

these programs, rights or obligations.

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(4) This rule does not raise novel legal or policy issues. This is

a very simple rule which only addresses ordinary operational decisions

of the lessee/operator and does not affect legal or policy issues.

Civil Justice Reform (E.O. 12988)

According to E.O. 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) of 1969

This rule does not constitute a major Federal action significantly

affecting the quality of the human environment. A detailed statement

under the NEPA is not required.

Paperwork Reduction Act of 1995

There are no information collection requirements associated with

this rule.

Regulatory Flexibility Act

The Department certifies that this document will not have a

significant economic effect on a substantial number of small entities

under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The Small

Business Administration (SBA) defines a 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.

We estimate that there is a total of 1,380 firms that drill oil and

gas wells onshore and offshore under the Small Business

Administration's Standard Industrial Classification (SIC) 1381,

Drilling Oil and Gas Wells. 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.

Incorporation of the new document into MMS regulations would allow

the offshore structure to be designed and built using either offshore

electrical location classification method. Thus, incorporation of the

new document will not impose new cost on the offshore oil and gas

industry and may provide beneficial flexibility. The Department also

determined that the indirect effects of this rule on small entities

that provide support for offshore activities are small (in effect

zero).

Based on these reasons, this rule has no significant economic

impact on the small entities.

Your comments are important. The Small Business and Agriculture

Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were

established to receive comments from small business 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 final 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 procedures. The minor revisions

to operating procedures may result in some minor costs or may actually

result in minor costs 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. The costs associated with this rule

are either minor or may actually result in minor cost savings.

(c) Does not have significant adverse effects on competition,

employment, investment, productivity, innovation, or the ability of

U.S.-based enterprises to compete with foreign-based enterprises. This

rule simply grants lessee/operator additional flexibility when

designing an offshore structure and will not have any adverse effects.

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: November 22, 1999.

Sylvia V. Baca,

Acting Assistant Secretary, Land and Minerals Management.

For the reasons stated in the preamble, MMS amends 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.

2. In Sec. 250.198, in the table in paragraph (e), the entry for

``API RP 500'' is revised to read as follows:

Sec. 250.198 Documents incorporated by reference.

* * * * *

(e) * * *

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Incorporated by reference

Title of document at

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* * * *

* *

API RP 500, Recommended Practice for Sec. 250.114(a);

Classification of Locations for Electrical Sec. 250.802(e)(4)(i);

Installations at Petroleum Facilities Sec. 250.803(b)(9)(i);

Classified as Class I, Division 1 and Sec. 250.1628(b)(3);

Division 2, Second Edition, November 1997, (d)(4)(i);

API Stock No. C50002. Sec. 250.1629(b)(4)(i).

* * * *

* *

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3. In Sec. 250.198, the following document incorporated by

reference is added to the Table in paragraph (e) in alphanumerical

order.

Sec. 250.198 Documents incorporated by reference.

* * * * *

(e) * * *

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Incorporated by reference

Title of document at

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* * * *

* *

API RP 505, Recommended Practice for Sec. 250.114(a);

Classification of Locations for Electrical Sec. 250.802(e)(4)(i);

Installations at Petroleum Facilities Sec. 250.803(b)(9)(i);

Classified as Class I, Zone 0, Zone 1, and Sec. 250.1628(b)(3);

Zone 2, First Edition, November 1997, API (d)(4)(i);

Stock No. C50501. Sec. 250.1629(b)(4)(i).

* * * *

* *

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4. In Sec. 250.114, paragraph (a) is revised to read as follows:

Sec. 250.114 How must I install and operate electrical equipment?

* * * * *

(a) You must classify all areas according to API RP 500,

Recommended Practice for Classification of Locations for Electrical

Installations at Petroleum Facilities Classified as Class I, Division 1

and Division 2, or API RP 505, Recommended Practice for Classification

of Locations for Electrical Installations at Petroleum Facilities

Classified as Class I, Zone 0, Zone 1, and Zone 2.

* * * * *

5. In Sec. 250.802, paragraph (e)(4)(i) introductory text is

revised to read as follows:

Sec. 250.802 Design, installation, and operation of surface

production-safety systems.

* * * * *

(e) * * *

(4) * * *

(i) A plan for each platform deck outlining all hazardous areas

classified according to API RP 500, Recommended Practice for

Classification of Locations for Electrical Installations at Petroleum

Facilities Classified as Class I, Division 1 and Division 2, or API RP

505, Recommended Practice for Classification of Locations for

Electrical Installations at Petroleum Facilities Classified as Class I,

Zone 0, Zone 1, and Zone 2, and outlining areas in which potential

ignition sources, other than electrical, are to be installed. The area

outlined will include the following information:

* * * * *

6. In Sec. 250.803, the last sentence of paragraph (b)(9)(i) is

revised to read as follows:

Sec. 250.803 Additional production system requirements.

* * * * *

(b) * * *

(9) * * *

(i) * * * A classified area is any area classified Class I, Group

D, Division 1 or 2, following the guidelines of API RP 500, or any area

classified Class I, Zone 0, Zone 1, or Zone 2, following the guidelines

of API RP 505.

* * * * *

7. In Sec. 250.1628, paragraphs (b)(3) and (d)(4)(i) are revised to

read as follows:

Sec. 250.1628 Design, installation, and operation of production

systems.

* * * * *

(b) * * *

(3) Electrical system information including a plan of each platform

deck, outlining all hazardous areas classified according to API RP 500,

Recommended Practice for Classification of Locations for Electrical

Installations at Petroleum Facilities Classified as Class I, Division 1

and Division 2, or API RP 505, Recommended Practice for Classification

of Locations for Electrical Installations at Petroleum Facilities

Classified as Class I, Zone 0, Zone 1, and Zone 2, and outlining areas

in which potential ignition sources are to be installed;

* * * * *

(d) * * *

(4) * * *

(i) A plan of each platform deck, outlining all hazardous areas

classified according to API RP 500, Recommended Practice for

Classification of Locations for Electrical Installations at Petroleum

Facilities Classified as Class I, Division 1 and Divisions 2, or API RP

505, Recommended Practice for Classification of Locations for

Electrical Installations at Petroleum Facilities Classified as Class I,

Zone 0, Zone 1, and Zone 2, and outlining areas in which potential

ignition sources are to be installed;

* * * * *

8. In Sec. 250.1629, the last sentence of paragraph (b)(4)(i) is

revised to read as follows:

Sec. 250.1629 Additional production and fuel gas system requirements.

* * * * *

(b) * * *

(4) * * *

(i) * * * A classified area is any area classified Class I, Group

D, Division 1 or 2, following the guidelines of API RP 500, or any area

classified Class I, Zone 0, Zone 1, or Zone 2, following the guidelines

of API RP 505.

* * * * *

[FR Doc. 00-26 Filed 1-3-00; 8:45 am]

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