Permits for Structures Located Within Shipping Safety Fairways

DEPARTMENT OF DEFENSE

Department of the Army

Corps of Engineers

33 CFR Part 322

Permits for Structures Located Within Shipping Safety Fairways

AGENCY: U.S. Army Corps of Engineers, DoD.

ACTION: Final rule.

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SUMMARY: The Corps is changing its rules regarding permits for the

placement of temporary anchors, cables and chains for floating or

semisubmersible drilling rigs within shipping safety fairways. Shipping

safety fairways and anchorages are established on the Outer Continental

Shelf by the U.S. Coast Guard to provide unobstructed approaches for

vessels using U.S. ports. This change arises as a result of requests by

offshore oil companies for exemptions to the provisions of the existing

rule because drilling and production technologies have greatly extended

the range of deepwater drilling and the 120 day time limits placed on

temporary structures allowed within fairway boundaries are no longer

reasonable.

EFFECTIVE DATE: September 28, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph T. Eppard at (202) 761-1783.

SUPPLEMENTARY INFORMATION: Department of the Army permits are required

for the construction of any

[[Page 44761]]

structure in or over any navigable water of the United States pursuant

to Section 10 of the Rivers and Harbors Act of 1899 (30 Stat. 1151; 33

U.S.C. 403). This authority was extended to artificial islands and

fixed structures located on the Outer Continental Shelf (OCS) by

Section 4(f) of the Outer Continental Shelf Lands Act of 1953 (67 Stat.

463; 43 U.S.C. 1333(e)).

Background

Pursuant to the cited authorities, the Corps promulgated

regulations in 33 CFR 209.135 establishing shipping safety fairways in

the Gulf of Mexico to provide obstruction-free routes for vessels in

approaches to United States ports. The Corps provided these

obstruction-free routes by denying permits for structures within

certain designated lanes. In 1978, the Ports and Waterways Safety Act

(PWSA), was amended to delegate authority to the Department of

Transportation and the Commandant, U.S. Coast Guard to establish vessel

routing measures, including fairways and fairway anchorages. In

accordance with the PWSA, the Coast Guard completed the required

studies and published final rules establishing shipping safety fairways

on May 13, 1982. The Corps subsequently revoked its fairway regulations

in Section 209.135(d) but retained paragraph (b), which contains the

conditions under which the nationwide permit for oil exploration and

production structures on the OCS (33 CFR 330.5(a)(8)), was issued. On

November 13, 1986, the Corps fairway regulations were repromulgated in

33 CFR 322.5(l) to consolidate all permit regulations for structures in

the same part.

When the regulations allowing temporary structures within fairways

were promulgated by the Corps in 1981, deepwater drilling occurred in

water depths of 300 to 600 feet. At that time the limitation of 120

days that temporary anchors would be allowed within fairways was

considered reasonable. If the exploratory well was successful, a

conventional fixed production platform would be used and there would be

no further need to maintain the anchors within the fairway. Presently,

according to offshore hydrocarbon exploration and production companies,

technology has extended the range of deepwater drilling to water depths

of 1,000 to 4,000 feet. As a result, drilling times have increased and

production methods have changed. Accordingly, the limitation on the

length of time (120 days), that an anchor is allowed within a fairway

may not be appropriate, particularly in water depths in excess of 600

feet. The industry has available many types of production platforms,

including floating production systems that are anchored in place during

the productive life of the reserves and then moved to a new location.

In water depths greater than 600 feet, the floating production platform

becomes an important production option and in water depths greater than

1,000 feet these units are essential. In many instances, the only

obstacle to using this type of system to drill and produce hydrocarbons

is the location of a fairway. Current regulations require that the

production system be placed at great distance from the fairway in order

to keep the anchors clear of the fairway. The result is that there may

be hydrocarbon bearing lease areas that cannot be effectively

penetrated and produced. It should be noted that the requirement that

the rig must be situated as necessary to insure that the minimum

clearance over an anchor line within a fairway is 125 feet, is not

changed by these amendments. In addition, these amendments are not

intended to allow drilling structures within the fairways.

On July 7, 1994, we published an advance notice of proposed

rulemaking in the Federal Register, soliciting comments on four

separate options concerning this matter. On May 1, 1995, we published a

notice of proposed rulemaking in the Federal Register soliciting public

comment on the option which would remove the 120 day time restrictions

when water depths exceed 600 feet. We received eight letters in support

of the proposed change. We did not receive any objections to the

proposed change. Two of the commenters requested that the words

``production facilities'' be added to clarify the rule. We agree with

the addition of the production facilities as requested. The preamble to

the advanced notice and the proposed rule referred to production

platforms and production systems. As proposed, we are also amending the

rules in 33 CFR 322.5(l) by removing the word ``temporary'', making it

clear by restructuring the sentences that drilling rigs, including

floating or semisubmersible drilling rigs, are not allowed within

fairway boundaries and adding a sentence to subparagraph (i) to

eliminate time restrictions on temporary and permanent anchors,

attendant cable and chains within fairways when water depths exceed 600

feet. Such anchors, attendant cable and chains must be for floating or

semisubmersible exploratory or production drilling rigs only. In areas

where water depths are less than 600 feet, the time limit of 120 days

continues to apply.

Regulatory Analyses and Notices

The Corps has determined in accordance with E.O. 12866 that this

rule is not a major rule. It will not result in an annual effect on the

economy of $100 million or more. There will be no major increase in

costs or prices for consumers; individual industries, Federal, State or

local Governments or geographic regions. It will not have a significant

adverse effect on competition, employment, investment, productivity, or

the ability of United States-based enterprises to compete with foreign-

based enterprises in domestic or export markets. Pursuant to the

Regulatory Flexibility Act, Pub. L. 96-354, I certify that this rule

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

small entities as the rule would remove a restriction allowing access

to areas on the outer continental shelf previously unavailable.

List of Subjects in 33 CFR Part 322

Continental shelf, Electric power, Navigation, Water pollution

control, Waterways.

In consideration of the above, the Corps of Engineers is amending

Part 322 of Title 33, as follows:

PART 322--PERMITS FOR STRUCTURES OR WORK IN OR AFFECTING NAVIGABLE

WATERS OF THE UNITED STATES

1. The authority citation for Part 322 continues to read as

follows:

Authority: 33 U.S.C. 403.

2. Section 322.5 is amended by revising the introductory text of

paragraph (l)(1), redesignating paragraphs (l)(1)(i) through (l)(1)(vi)

as paragraphs (l)(1)(ii) through (l)(1)(vii) respectively, adding a new

paragraph (l)(1)(i), and revising redesignated paragraph (l)(1)(ii) to

read as follows:

Sec. 322.5 Special policies.

* * * * *

(l) Shipping safety fairways and anchorage areas.

* * * * *

(1) The Department of the Army will grant no permits for the

erection of structures in areas designated as fairways, except that

district engineers may permit anchors and attendant cables or chains

for floating or semisubmersible drilling rigs to be placed within a

fairway provided the following conditions are met:

(i) The purpose of such anchors and attendant cables or chains as

used in

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this section is to stabilize floating production facilities or

semisubmersible drilling rigs which are located outside the boundaries

of the fairway.

(ii) In water depths of 600 feet or less, the installation of

anchors and attendant cables or chains within fairways must be

temporary and shall be allowed to remain only 120 days. This period may

be extended by the district engineer provided reasonable cause for such

extension can be shown and the extension is otherwise justified. In

water depths greater than 600 feet, time restrictions on anchors and

attendant cables or chains located within a fairway, whether temporary

or permanent, shall not apply.

* * * * *

Dated: August 15, 1995.

Stanley G. Genega,

Major General, U.S. Army, Director of Civil Works.

[FR Doc. 95-21112 Filed 8-28-95; 8:45 am]

BILLING CODE 3710-92-M