Outer Continental Shelf Pipelines

DEPARTMENT OF THE INTERIOR

Minerals Management Service

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

Outer Continental Shelf Pipelines

AGENCY: Minerals Management Service (MMS), Department of the Interior

(DOI), and Research and Special Programs Administration (RSPA),

Department of Transportation (DOT).

ACTION: Notice of memorandum of understanding.

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SUMMARY: DOI and DOT have revised a Memorandum of Understanding (MOU)

on their respective responsibilities for pipelines on the Outer

Continental Shelf (OCS). The revised MOU will replace an MOU in effect

since May 6, 1976.

EFFECTIVE DATE: December 10, 1996.

FOR FURTHER INFORMATION CONTACT:

L. E. Herrick, Office of Pipeline Safety Regulatory Programs, RSPA;

telephone (202) 366-5523; e-mail [email protected]; or Carl W.

Anderson, Operations Analysis Branch, MMS; telephone (703) 787-1608; e-

mail Carl__A[email protected].

SUPPLEMENTARY INFORMATION:

Background

On May 24, 1995, MMS and RSPA published a notice with request for

comments in the Federal Register (60 FR 27546; May 24, 1995). The

notice announced a proposed MOU between the two agencies re-defining

their respective responsibilities for pipelines on the OCS. Over 70

people attended a public meeting in New Orleans on August 1, 1995, to

discuss the proposal. A transcript of this meeting is available through

the agency representatives listed in the ``For Further Information''

section of this notice. The public meeting generated over 100 pages of

transcribed comments from natural gas and petroleum trade

organizations, natural gas and oil exploration and production

companies, transmission companies, offshore construction companies, and

industry consultants. The DOI and DOT received twenty-three written

comments on the Federal Register Notice.

Before the close of the comment period, the American Petroleum

Institute requested a 30-day extension to provide time to convene a

regulated community task team, review the proposal, and prepare a

detailed response. RSPA and MMS responded by extending the comment

period to September 22, 1995 (60 FR 43611; August 22, 1995).

The MOU places, to the greatest extent practicable, producer

operated pipelines under DOI responsibility and transporter operated

pipelines under DOT responsibility. Producers are companies which are

engaged in he extraction and processing of hydrocarbons on the OCS.

Transporters are companies which are engaged in the transportation of

those hydrocarbons. As a result of this revision, some pipelines,

predominantly producer operated pipelines, currently under DOT

responsibility, will be under DOI responsibility.

Each agency will initiate separate public rulemakings which will

reflect the new boundaries. The DOI and DOT will propose that any

changes in requirements for design or construction of pipelines which

result from the transfer of pipelines to another agency's

responsibility not apply to existing pipeline segment until each

operator makes significant repairs or modifications to those segments.

This MOU also establishes an agreement between the two agencies for

DOI to act as agent for DOT in identifying and reporting potential

violations of DOT regulations at offshore platforms on the OCS. As an

agent, DOI may inspect all DOT-regulated pipeline facilities on

production platforms during DOI inspections. DOI may also perform

coordinated DOI/DOT inspections of pipeline facilities on DOT-regulated

platforms. The inspections may include reviewing any operating or

maintenance records or reports that are located at the inspected OCS

platform facility.

Once implemented through regulation, the changes described in the

MOU will substantially reduce the burden of overlapping Federal

jurisdictions and inconsistencies between agency requirements This will

substantially increase the efficiency of governmental resources on the

OCS without compromising safety.

Dated: February 10, 1997.

Richard B. Felder,

Associate Administrator for Pipeline Safety.

Dated: February 10, 1997.

Carolita U. Kallaur,

Associate Director for Offshore Minerals Management.

The MOU reads as follows:

Memorandum of Understanding Between the Department of Transportation

and the Department of the Interior, Regarding Outer Continental Shelf

Pipelines

I. Purpose

This Memorandum of Understanding (MOU) establishes the boundaries

that will be used to delineate the locations over which the Department

of Transportation (DOT), Research and Special Programs Administration

(RSPA), and the Department of the Interior (DOI), Minerals Management

Service (MMS), will exercise their respective regulatory authority over

pipelines located on the Outer Continental Shelf (OCS). This MOU

replaces the MOU between DOT and DOI regarding OCS pipelines which was

signed and became effective May 6, 1976, and which terminates as of the

effective date of this MOU.

In recognition of each of the parties' respective regulatory

responsibilities for OCS pipelines, DOI and DOT agree that an MOU is

needed to avoid duplication of regulatory efforts regarding OCS

pipelines, to assure coordination and consultation during the

development and implementation of regulatory requirements, to

facilitate compatible regulatory requirements for all OCS pipelines

whether under DOI or DOT jurisdiction, and to promote safety and

environmental protection on the OCS. This MOU puts, to the greatest

extent practicable, OCS production pipelines under DOI responsibility

and OCS transportation pipelines under DOT responsibility.

II. Authority

DOT has the responsibility for promulgating and enforcing

regulations for the safe and environmentally sound transportation or

gases and hazardous liquids by pipeline. DOT administers the following

laws as they relate to pipelines: (1) the pipeline safety laws (49

U.S.C. 60101 et seq.); (2) the Deepwater Port Act of 1974 (33 U.S.C.

1501-1524); (3) the Federal Water Pollution Control Act (FWPCA) (33

U.S.C. 1251-1375), as amended by the Oil Pollution Act of 1990 (OPA)

(P.L. 101-380) and implemented under Executive Order (E.O.) 12777; and

(4)

[[Page 7038]]

the Hazardous Materials Transportation Act (49 U.S.C. 5101 et seq.).

DOI has responsibilities for promulgating and enforcing regulations

for the promotion of safe operations, protection of the environment,

and conservation of the natural resources of the OCS, as that area is

defined in the OCS Lands Act (OCSLA) (43 U.S.C. 1331 et seq.). DOI also

has certain responsibilities for granting rights-of-way for the

construction of pipelines and associated facilities on the OCS. DOI

administers the following laws as they related to OCS pipelines: (1)

The OCSLA for the transportation of minerals by pipeline, (2) the

Federal Oil and Gas Royalty Management Act of 1982 for oil and gas

production measurement, and (3) the FWPCA, as amended by OPA and

implemented under E.O. 12777.

III. Division of Responsibilities

DOI and DOT agree to the following division of OCS pipeline

regulatory responsibilities with respect to design, construction,

operation, and maintenance regulations for all pipelines on the OCS

pursuant to the statutes cited above.

DOI Responsibilities

1. DOI will establish and enforce design, construction, operation,

and maintenance regulations and investigate significant accidents

pursuant to the OCSLA for all OCS pipelines located upstream of the

point at which operating responsibility transfers from a producing

operator to a transporting operator. Such points shall be fixed and

clearly designated by the operators of the facilities.

2. DOI will perform authorized inspection tasks for OCS pipelines

under DOT responsibility, also described under paragraph 8, ``Joint

Responsibilities,'' as an agent of DOT, under DOT pipeline safety

regulations and enforcement guidelines.

3. DOI will consult with DOT during the development of regulatory

requirements and will send a copy of each draft notice of proposed

rulemaking (NPR) concerning OCS pipelines to DOT for review at least 60

days before the NPR is published in the Federal Register.

4. DOI will require all applications concerning pipelines and

pipeline rights-of-way to include a statement concerning which agency

has responsibility for the pipeline. When DOI grants rights-of-way for

pipelines which are under DOT responsibility, DOI will condition its

approval on the pipelines being designed, constructed, operated, and

maintained in compliance with DOT regulations. Upon approval of grants

for right-of-way pipelines under DOT responsibility, DOI will provide

copies of its approval letters to DOT.

5. DOI will allow DOT to use, on a reimbursable basis, DOI-

contracted helicopters for the inspection of OCS pipelines, subject to

helicopter availability.

6. For pipelines under DOT responsibility, DOI will report to DOT

in writing any apparent violation of DOT regulations that is identified

during the course of DOI inspections.

DOT Responsibilities

1. DOT will establish and enforce design, construction, operation,

and maintenance regulations and investigate significant accidents for

all OCS transportation pipelines beginning downstream of the point at

which operating responsibility transfers from a producing operator to a

transporting operator. Such points shall be fixed and clearly

designated by the operators of the facilities.

2. DOT delegates authorized inspection tasks for OCS pipelines

under DOT responsibility to DOI, also described under paragraph 8,

``Joint Responsibilities,'' as an agent of DOT, under DOT pipeline

safety regulations and enforcement guidelines.

3. DOT will consult with DOI during the development of regulatory

requirements and will send a copy of each draft NPR concerning OCS

pipelines to DOI for review at least 60 days before the NPR is

published in the Federal Register.

4. For pipelines under DOI regulatory authority, DOT will report to

DOI in writing any apparent violation of DOI regulations that is

identified during the course of DOT inspections.

Joint Responsibilities

1. DOI and DOT will consult and coordinate all of their respective

rulemaking efforts affecting OCS pipelines. Supporting regulatory

analyses (e.g., Determinations of Effects of Rules, Regulatory Impact

Analyses, and information collection burdens, etc.) will also be

coordinated, although the analyses will be appropriate for each agency

and the industry segments it regulates.

2. DOI and DOT will coordinate all of their respective research and

development projects concerning OCS pipelines.

3. DOI and DOT may perform joint inspections of pipeline segments

and facilities where either has jurisdiction, particularly when there

are potential safety impacts from one facility on another.

4. DOI and DOT may perform joint or independent investigations of

accidents involving OCS pipeline segments where either has

jurisdiction.

5. DOI and DOT will each provide the other agency with any final

rule, notice, agreement, or MOU with any Federal or State agency

concerning OCS pipelines.

6. At least once every 3 calendar years, DOI and DOT will jointly

review existing standards, regulations, orders, operating practices,

and environmental and safety issues concerning OCS pipelines.

7. DOI and DOT may, through their enforcement agencies and in

consultation with the affected parties, agree to exceptions to this MOU

on a facility by facility or area by area basis. Operators may also

petition DOI and DOT for exceptions to this MOU.

8. DOI is authorized by DOT to perform coordinated OCS platform

inspection tasks for pipelines under DOT responsibility. DOI will

advise pipeline operators and DOT of inspection findings and will refer

all cases of apparent noncompliance with DOT regulations to DOT.

IV. Implementation

1. Within 120 days of the signing of this MOU, DOI and DOT will

develop and initiate a joint implementation plan and rulemakings. The

plan will also establish the procedures under which the point of

demarcation at each facility will be fixed, marked, and reported.

2. Thereafter, DOI and DOT will meet periodically to review and

update the joint implementation plan and to review this MOU for any

needed revisions.

3. The respective points of contact for the provisions of this MOU

are:

Associate Administrator for Pipeline Safety, Research and Special

Programs Administration, Department of Transportation, 400 7th Street,

SW., Washington, D.C. 20590

Associate Director for Offshore Minerals Management, Minerals

Management Service, Department of the Interior, 1849 C Street, NW.,

Washington, D.C. 20240

V. Limitations

1. Nothing in this MOU is intended to alter, limit, or expand the

statutory or regulatory authority of DOT or DOI until implementing

regulations are adopted.

2. Nothing in this MOU limits informal consultations not otherwise

mentioned in this agreement.

3. Nothing in this MOU relieves an OCS pipeline owner or operator

from complying with the regulations of any State of Federal agency.

4. Under a separate MOU among DOI, DOT, and the U.S. Environmental

[[Page 7039]]

Protection Agency pursuant to the OPA, the agencies have divided their

respective responsibilities for oil spill prevention and response

according to the definition of ``coast line'' contained in the

Submerged Lands Act, 43 U.S.C. 1301(c) (59 FR 9494-9495). Nothing

herein is intended to affect the implementation or administration of

that MOU.

VI. Modification

Either party to this agreement may propose modifications by

submitting them in writing to the head of the other Department. No

modification may be adopted except with the consent of both parties.

Both parties shall indicate their consent to or disagreement with any

proposed modification within 60 days of receipt. Upon the request of

either party, representatives of both parties shall meet for the

purpose of considering modifications to this agreement.

VII. Termination

This MOU may be terminated by either party upon 60-day written

notice to the other party.

VIII. Administration

This MOU will be administered by DOI's Minerals Management Service

and DOT's Research and Special Programs Administration or such

successor agencies as may be designated by the respective Secretaries.

IX. Effective Date

This MOU is effective upon acceptance by both parties as indicated

by the signatures below.

Dated: December 10, 1996.

Department of the Interior.

Bruce Babbitt,

Secretary.

Dated: December 10, 1996.

Department of Transportation

Federico Pena,

Secretary.

[FR Doc. 97-3769 Filed 2-13-97; 8:45 am]

BILLING CODE 4310-MR-M