Licensing of Officers and Operators for Mobile Offshore Drilling Units

DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Parts 10 and 15

[CGD 81-059a]

RIN 2115-AB91

Licensing of Officers and Operators for Mobile Offshore Drilling

Units

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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SUMMARY: In an interim final rule published on April 18, 1990, (55 FR

14792), the Coast Guard amended the regulations concerning the

licensing of officers on mobile offshore drilling units (MODUs) and the

manning of these vessels. The rulemaking implemented National

Transportation Safety Board (NTSB) recommendations for the

establishment of personnel qualifications and manning regulations for

MODUs. These minimum standards were intended to ensure that licensed

individuals on board MODUs are qualified to deal with specific marine

safety matters. This rule adopts the interim final rule with minor

changes.

EFFECTIVE DATE: This rule is effective on April 7, 1994.

FOR FURTHER INFORMATION CONTACT:

Mr. Paul W. Eulitt, Project Manager, Office of Marine Safety, Security

and Environmental Protection, (G-MVP), phone (202) 267-0224.

SUPPLEMENTARY INFORMATION:

Drafting Information

The principal persons involved in drafting this document are Mr.

Paul W. Eulitt, Project Manager, Office of Marine Safety, Security and

Environmental Protection, and Mr. Nicholas Grasselli, Project Counsel,

Office of Chief Counsel.

Regulatory History

On August 8, 1983, the Coast Guard published a notice of proposed

rulemaking (NPRM) entitled ``Licensing of Officers and Operators and

Registration of Staff Officers'' in the Federal Register, (48 FR

35920), proposing to completely revise the licensing regulations in

part 10 of title 46 Code of Federal Regulations. Included in the NPRM

were proposed rules formalizing the requirements for MODU industry

licenses.

As a result of comments received concerning the licensing and

manning requirements for MODU's, the Coast Guard published a separate

supplemental notice of proposed rulemaking (SNPRM) on October 24, 1985,

(50 FR 43366) addressing these issues.

An interim final rule (IFR) was published on October 16, 1987 (52

FR 38660). Comments received in response to this IFR indicated a need

to re-address several issues related to MODU licensing and manning. A

notice suspending the IFR's effective date was published on February

28, 1989 (54 FR 8334).

A second SNPRM published May 17, 1989 (54 FR 21246), proposed to

revise the offshore installation manager qualifications and MODU

manning levels. It also proposed a procedure by which unlicensed

individuals currently serving in positions requiring licenses could

obtain the required credentials.

A second IFR published on April 18, 1990, (55 FR 14792), adopted

the second SNPRM with minor changes and permitted the public the

opportunity to submit additional comments on this rulemaking. The Coast

Guard received 5 letters commenting on the IFR.

A public hearing was not requested and one was not held.

Background and Purpose

Public Law 96-378 (codified as 46 United States Code 7101(d))

requires the establishment, where possible, of suitable career

patterns, service and qualifying requirements, and substitution of

training time and courses of instruction for sea service on deck or in

the engine department. This places responsibilities on the Coast Guard

for modifying many sections of our licensing regulations.

The Coast Guard has long recognized the need for special licenses

adapted to the unique operations associated with MODUs. In response to

a number of major marine casualties on U.S. flag MODUs, investigations

were conducted by the NTSB and the Coast Guard marine boards of

investigation. These investigations concluded that current Coast Guard

regulations did not adequately address the unique characteristics

inherent in the offshore oil drilling industry. These investigation

reports recommended that the Commandant of the Coast Guard promulgate

personnel qualification and manning regulations for MODUs. Therefore,

the Coast Guard, with industry assistance proposed regulations enabling

personnel serving in the offshore drilling industry to qualify for

licenses.

The purpose of this rulemaking is to adopt as final the IFR

published in the Federal Register (55 FR 14792) on April 18, 1990,

entitled ``Licensing of Officers and Operators for Mobile Offshore

Drilling Units''. This rulemaking also makes minor changes adopting

recommendations provided in the comments received to the IFR.

Discussion of Comments and Changes

The Coast Guard appreciates the effort expended by the offshore

drilling industry and other interested parties in commenting on this

rulemaking. As addressed below, several commenters expressed similar

opinions on specific issues.

1. Time Limitation for Conversion of Existing MODU Licenses

Two comments indicated that the IFR was unclear as to how long a

holder of a license could convert an existing Master or Mate MODU

license to either one of three licenses: (1) Offshore Installation

Manager (OIM); (2) Barge Supervisor (BS); or (3) Ballast Control

Operator (BCO). The holder of an ``old'' MODU license will continue to

be able to convert the ``old'' MODU license as long as the holder comes

forward prior to the end of the one year grace period after the

expiration of their existing license (five years from the date of

issue) and the holder provides the appropriate required training

certificates. Thus, a license can be converted at any time after July

1, 1990, until the license lapses. Once the license has lapsed, an

applicant must follow the procedures for re-issuance of a license and

comply with the new requirements.

These same two comments also expressed a concern that license

holders would not get the word about converting to the ``new'' MODU

license prior to expiration of their ``old'' license. Comments

requested that the Coast Guard notify all MODU license holders by

letter of their opportunity to convert their ``old'' license. The Coast

Guard believes that the holder of a license has the responsibility for

the timely renewal of a license and believes it would be inefficient

for the Coast Guard to attempt to contact and inform all license

holders about this rulemaking. However, the Coast Guard intends to

publish articles in ``Proceedings of the Marine Safety Council'' as

well as in industry magazines and newsletters addressing changes

published in the Federal Register on licensing requirements. Also, the

Coast Guard will keep the membership of the National Offshore Safety

Advisory Committee advised of initiatives effecting the licensing

requirements for industry personnel.

2. Stability Courses

Two comments were received regarding the applicant's requirement to

complete a training course on MODU stability. One comment requested a

waiver of the requirement to complete a stability training course for

applicants until July 1, 1995, similar to what had been done with the

MODU survival suit/craft training. When this comment was received, the

Coast Guard had not yet developed specific guidelines for MODU

stability courses. Since publication of the IFR, the Coast Guard

developed MODU stability course guidelines and approved numerous MODU

stability training courses sufficient to meet the demand of the

industry. Therefore, the Coast Guard is retaining the requirement for

individuals to complete approved MODU stability training prior to

converting or obtaining an original MODU license. The second comment

suggested that since specific MODU stability course guidelines had not

been developed, the Coast Guard should accept certificates of

completion from all presently approved MODU stability courses to

satisfy this requirement. The Coast Guard agrees and will accept a

certificate from an applicant to meet the licensing requirement for the

successful completion of a presently approved MODU stability course.

3. Licensing and Manning Requirements for Tension Leg Platforms (TLPs)

The Coast Guard received a comment which requested that all

requirements for licensing and manning of TLPs be suspended until

specific TLP requirements could be developed. Essentially, the TLP is a

site specific buoyant outer continental shelf facility securely and

substantially moored so that it cannot be moved without special effort

and not intended for periodic relocation. In contrast, a MODU is a

buoyant vessel not site specific and capable of getting underway under

its own power without assistance to an alternate site. Even though

there are some significant differences between a MODU and a TLP, a TLP

still has characteristics of conventional MODUs. Although the TLP is a

new and unique offshore facility, the Coast Guard considers it a vessel

and believes it inappropriate to altogether suspend licensing and

manning requirements for TLPs. Due to the limited number of TLPs

presently in operation, the local Officer in Charge of Marine

Inspection (OCMI) will continue to consider TLP manning on a case by

case basis. Therefore, an individual assigned on board a TLP will

continue to be required to hold an endorsement for TLPs on an existing

MODU license until specific sea service and training requirements can

be developed.

The Coast Guard will review on a case by case basis the

qualifications and training recommendations to determine whether there

is a need to require specific license and manning regulations for TLPs.

Because of the unit's unique mooring design, a stability training

course specific to TLPs or, when in the operating mode, a weight

distribution and tendon tension monitoring training may be more

appropriate than conventional stability training for a TLP license.

However, when a TLP is underway, a licensed individual is required to

have completed an appropriate stability training course for the

position held.

4. Service Requirement on Self-Propelled Vessels for MODU Engineer

Licenses

One comment requested that the Coast Guard delete the self-

propelled service requirement on MODUs for engineering licenses. The

Coast Guard disagrees and believes that engineers must have propulsion

machinery experience to ensure the safety of self-propelled MODUs

operating in a marine environment. Therefore, the requirement for a

portion of the sea service time for a license as engineer (MODU) will

continue to include experience assigned to self-propelled units fitted

with propulsion machinery.

The Coast Guard recognizes the difficulty some applicants

experience in obtaining the required self-propelled service Therefore,

the Coast Guard is adopting a provision in this rule to enable those

applicants unable to meet the service requirement for self-propelled

units to be issued a license limited to non-self-propelled units.

If an applicant has obtained the total sea service required to

qualify for a MODU engineering license without having satisfied that

portion of the service required on board self-propelled or propulsion

assisted units, then the OCMI may allow those individuals to complete a

modified examination and if successfully passed be issued a license

limited to non-self-propelled units. Upon presentation of the required

self-propelled sea service and completion of any examination

deficiencies, the non-self-propelled limitation may be removed.

5. Acceptance of Foreign Training Courses

Three comments were received urging the ``acceptance'' of foreign

training courses. Suggestions recommended that either a joint Coast

Guard/industry panel be created as a mechanism for review and

acceptance of foreign courses or accept those training programs which

have received approval by the foreign coastal state administration

where the course is offered. Previously, the Coast Guard has required

the industry to demonstrate that a shortage exists of domestically

located Coast Guard approved courses and the economic justification is

sufficient to allow for approval or acceptance of courses overseas. The

Coast Guard has been reluctant to approve courses offered overseas

because it has neither the oversight authority or resource capability

to conduct an approval program for courses offered worldwide.

Recognizing the introduction of international standards for

seafarers and the increased level of U.S. maritime industry activity

overseas, the Coast Guard may consider the acceptance of foreign

courses similar to domestically approved courses. The Coast Guard will

study the appropriateness of accepting or approving foreign training

courses when it conducts the next review of the course approval

process. Consideration will be given to ensure that sufficient

resources are allocated to properly perform the oversight

responsibilities of a foreign course acceptance/approval program.

6. Unlimited Master Examination Requirement for OIM Endorsements

One comment requested that the Coast Guard not require the holder

of a license as ``Master, oceans, any gross tons'' to complete

additional examination requirements in order to obtain an OIM

endorsement. The Coast Guard agrees that the professional competence of

an individual who has obtained an unlimited license as master has

already been successfully established to the satisfaction of the Coast

Guard. Therefore, an unlimited licensed master who possesses the

minimum sea service for any of the various OIM endorsements, and

completes the required Coast Guard approved courses, is qualified to

have the appropriate endorsement added to the license without

examination.

7. MODU License Application Evaluation Offices

In order to keep evaluations consistent, the IFR restricted MODU

license application approvals to the Coast Guard Regional Examination

Center (REC) in New Orleans until July 1, 1992. Although no comments

were received regarding MODU license evaluation offices, applications

may now be submitted for evaluation and examinations administered at

any REC.

Regulatory Evaluation

This rule is not a significant regulatory action under Executive

Order 12866 and is not significant under the Department of

Transportation Regulatory Policies and Procedures (44 FR 11040;

February 26, 1979). A full regulatory evaluation was prepared and

placed in the rulemaking docket. It may be inspected or copied at the

Marine Safety Council (G-LRA-2/36) [CGD 81-059a], Room 3600, U.S. Coast

Guard Headquarters, 2100 Second Street SW., Washington, DC 20593-0001,

from 8 a.m. to 3 p.m.

The costs associated with this rulemaking are primarily related to

the training of MODU personnel. It requires individuals serving in

certain responsible positions aboard MODUs (self-propelled or non-self-

propelled) to obtain a Coast Guard issued license or endorsement that

authorizes them to serve in those positions. Individuals assigned to

these positions on MODUs will have to meet licensing qualifications

which include specific length of service experience on board MODUs,

completion of training courses, physical standards and a professional

examination. The training and qualifications contained in this rule,

were strongly recommended by the National Transportation Safety Board

and supported by the mobile offshore drilling industry and the

international community.

The costs associated with licensing and qualification of the

personnel in positions of responsibility on MODUs are relatively

insignificant when compared to typical MODU construction costs and

operating fees. Implementation of this requirement will not increase

manning requirements on MODUs but rather set a standard for training

and level of experience for licensed individuals assigned to MODUs.

Most drilling companies already require high standards of experience

and training for individuals serving aboard their mobile offshore

units. Therefore, since this rulemaking does not require any major

expenditures by the maritime industry, consumers, Federal, state or

local governments, it is not expected to have a significant economic

impact.

Small Entities

This rule applies to licenses for individuals only. The effect will

formalize the requirements to attend industry-specific training. Such

training was optional for individuals serving aboard MODUs. Because

this rule is essentially procedural and will permit the drilling

companies to operate according to current, long-standing industry

practice, the economic impact of this action is expected to be minimal.

Therefore, the Coast Guard certifies under section 605(b) of the

Regulatory Flexibility Act (5 U.S.C. 601 et seq.) that this final rule

will not have a significant economic impact on a substantial number of

small entities.

Collection of Information

This rule contains collection of information requirements.

Individuals seeking MODU licenses will be required to apply for a

license and provide certificates as evidence of having successfully

completed the required training. The certificate will be supplied by

the training facilities which provide the course(s). The Coast Guard

submitted the requirements to the Office of Management and Budget (OMB)

of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) and OMB has

approved them. The section numbers are in Sec. 10.107, and

Secs. 10.470, 10.472, 10.474, 10.542, and 10.544 and the corresponding

OMB approval number is OMB Control Number 2115-AB91. The time required

to comply with this requirement is inconsequential.

Federalism

The Coast Guard has analyzed this rulemaking under the principles

and criteria contained in Executive Order 12612 and has determined that

this action does not have sufficient federalism implications to warrant

the preparation of a Federalism Assessment. This final rule adopts a

new licensing structure for licensed officers aboard MODUs and provides

for safe manning of these vessels. This action was necessary to

establish personnel qualifications and manning regulations for this

type of vessel particular to the offshore drilling industry. Compliance

with these minimum standards will ensure that properly trained and

qualified individuals are on board MODUs to perform the daily marine

safety related matters. The Coast Guard is preempting any state action

addressing this same subject matter.

Environment

The Coast Guard considered the environmental impact of this rule

and concluded that under section 2.B.2 of Commandant Instruction

M16475.1B, this rule is categorically excluded from further

environmental documentation. The rule is procedural in nature and

permits the affected vessels to continue to operate according to

current industry practice. Therefore, this rule is included in the

categorical exclusion in subsection 2.B.2.1, ``Administrative actions

or procedural regulations and policies which clearly do not have any

environmental impact.'' A Categorical Exclusion Determination has been

placed in the docket.

List of Subjects in 46 CFR Part 10 and Part 15

Marine safety, Navigation (water), Reporting and record keeping

requirements, Seamen, Vessels and mobile offshore drilling units.

In consideration of the foregoing, the interim rule amending 46 CFR

parts 10 & 15 which was published at 55 FR 14792 on April 18, 1990, is

adopted as a final rule with the following changes.

1. Section 10.542 is amended by adding paragraph (c) to read as

follows:

Sec. 10.542 License for chief engineer (MODU).

* * * * *

(c) If an applicant successfully completes a modified examination

and possesses the total required sea service for a license as chief

engineer (MODU), but does not possess the required sea service on board

self-propelled or propulsion assisted units, the OCMI may issue the

applicant a license limited to non-self-propelled units. The OCMI may

remove the limitation upon presentation of satisfactory evidence of the

required self-propelled sea service and completion of any additional

required examination.

2. Section 10.544 is amended by adding paragraph (c) to read as

follows:

Sec. 10.544 License for assistant engineer (MODU).

* * * * *

(c) If an applicant successfully completes a modified examination

and possesses the total required sea service for a license as an

assistant engineer (MODU), but does not possess the required sea

service on board self-propelled or propulsion assisted units, the OCMI

may issue the applicant a license limited to non-self-propelled units.

The OCMI may remove the limitation upon presentation of the

satisfactory evidence of the required self-propelled sea service and

completion of any additional required examination.

3. Section 10.903 is amended by redesignating existing paragraphs

(b)(1) through (b)(3) as (b)(2) through (b)(4) respectively and by

adding a new paragraph (b)(1) to read as follows:

Sec. 10.903 Licenses requiring examinations.

* * * * *

(b) * * * (1) Master ocean any gross tons when adding an

endorsement as Offshore Installation Manager.

* * * * *

Dated: March 1, 1994.

A.E. Henn,

Rear Admiral, Coast Guard, Chief, Office of Marine Safety, Security and

Environmental Protection.

[FR Doc. 94-5277 Filed 3-7-94; 8:45 am]

BILLING CODE 4910-14-M