Memorandum of Understanding (MOU) Between the Minerals Management Service and the United States Coast Guard

DEPARTMENT OF THE INTERIOR

Minerals Management Service

Memorandum of Understanding (MOU) Between the Minerals Management

Service and the United States Coast Guard

AGENCY: Minerals Management Service, Interior.

ACTION: Notice.

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SUMMARY: Minerals Management Service (MMS) and the United States Coast

Guard (USCG) have updated their MOU concerning responsibilities for

offshore facilities. The update was necessary to add responsibilities

associated with floating facilities, the Oil Pollution Act (OPA), and

civil penalties.

DATES: The effective date of the MOU is December 16, 1998.

FOR FURTHER INFORMATION CONTACT: Greg Gould, MMS at (703) 787-1616 or

Rajiv Khandpur, USCG at (202) 267-0494.

SUPPLEMENTARY INFORMATION: In August, 1989 the MMS and the USCG signed

an MOU that outlined responsibilities associated with facilities

located on the Outer Continental Shelf (OCS). The purpose was to

minimize duplication, and to promote consistent regulation of these

facilities. The use of floating facilities and responsibilities

assigned by OPA created a need to update the MOU. Therefore, on January

5, 1998, MMS and USCG published an update of the 1989 MOU (63 FR 256)

for public comment. We analyzed those comments and we revised the MOU

as shown in Appendix A. We appreciate the excellent comments and

suggestions that we received.

We are now implementing the MOU. The following is a sample list of

actions that we will be considering in the process:

Review the standards of both agencies for consistency;

Determine the need for legislative changes to improve

efficiency and clarify the jurisdiction for floating facilities;

Determine how to make a smooth transition of duties;

Determine how the certified verification agent program

will function;

Focus on our inspection programs to eliminate duplication;

Work on safety management including accident

investigations to promote safe practices;

Implement the civil penalties process set out in the MOU;

Continue to work on single point reporting;

Communicate electronically;

Improve the process of reporting and collecting incident

data;

Share incident data to prevent accidents, particularly

fatalities;

In the rare cases when both agencies are conducting a

review (i.e., Design, fabrication, installation of non-ship-shape

floating facilities), determine how the process will work; and

Coordinate more research efforts for safety and oil spill

prevention and response.

We will be forming many teams with participants from MMS, USCG, and

[[Page 2661]]

industry to ensure that implementation of the MOU is provides the most

efficient and effective means to manage offshore oil and gas

development. We also plan to have meetings/workshops during the MOU

implementation process. The current requirements for each agency will

remain in effect until new regulations implementing the MOU are

promulgated.

Dated: January 8, 1999.

Carolita Kallaur,

Associate Director for Offshore Minerals Management.

Appendix A--Memorandum of Understanding Between Minerals Management

Service, U.S. Department of the Interior and United States Coast Guard,

U.S. Department of Transportation

Ia. Purpose

This Memorandum of Understanding (MOU) defines the

responsibilities of the Minerals Management Service (MMS) and the

United States Coast Guard (USCG) relating to managing the activities

of MODU's, fixed, and floating systems. It is designed to minimize

duplication and promote consistent regulation of facilities under

the jurisdiction of both agencies. This MOU does not apply to

deepwater ports as licensed by the Secretary of Transportation under

the Deepwater Port Act of 1974, as amended.

Ib. Scope

This MOU covers oil and gas activities located in the Outer

Continental Shelf (OCS). However, oil-spill preparedness is for

facilities located seaward of the coast line, unless noted

otherwise. Certificates of financial responsibility are for certain

facilities located in the OCS and the State waters included in the

definition of Covered Offshore Facility found at 30 CFR 253.3. An

MOU, dated February 3, 1994, among the Departments of Transportation

and the Interior and the Environmental Protection Agency established

jurisdictional responsibilities for facilities located both seaward

and landward of the coast line.

II. Definitions

For purposes of this MOU, the following definitions apply:

Act--The OCS Lands Act (OCSLA)--43 U.S.C. 1331 et seq.

Coast Line--The line of ordinary low water along that portion of

the coast that is in direct contact with the open sea and the line

marking the seaward limit of inland waters, as defined by the

Submerged Lands Act (43 U.S.C. 1301 (c)).

Outer Continental Shelf--The submerged lands that are subject to

the Act.

OCS Activity--Any activity in the OCS associated with

exploration, development, production, transporting, or processing of

OCS mineral resources including but not limited to oil and gas.

OCS Facility--Any artificial island, installation, pipeline, or

other device permanently or temporarily attached to the seabed,

erected for the purpose of exploring for, developing, producing, and

transporting resources from the OCS. This term does not include

ships or vessels for transporting produced hydrocarbons. The

following are types of OCS facilities:

1. Fixed OCS Facility--A bottom-founded OCS facility permanently

attached to the seabed or subsoil of the OCS, including platforms,

guyed towers, articulated gravity platforms, and other structures.

This definition also includes gravel and ice islands and caisson-

retained islands engaged in OCS activities used for drilling,

production, or both.

2. Floating OCS Facility--A buoyant OCS facility securely and

substantially moored so that it cannot be moved without a special

effort. This term includes tension leg platforms, spars,

semisubmersibles and shipshape hulls.

3. Mobile Offshore Drilling Units (MODU's)--Vessels capable of

engaging in drilling operations for exploring or exploiting subsea

oil, gas, or mineral resources.

OPA--The Oil Pollution Act of 1990 (Pub. L. 101-380).

Regional Director (RD)--The MMS officer delegated the

responsibility and authority for a region within MMS. The USCG

referrals for violations occurring in a particular MMS Region would

be made to that MMS Region's RD.

Regional Supervisor (RS)--The MMS officer (or the authorized

representative) in charge of operations within a Region.

Vessel--Every description of watercraft or other artificial

contrivance used, or capable of being used, as a means of

transportation on the water. This term does not include atmospheric

or pressure vessels used for containing liquids or gases.

Violation--Failure to comply with the OCSLA, any regulations, or

the terms or provisions of leases, licenses, permits, or rights-of-

way issued under the OCSLA.

III. Responsibilities

The following table lists the lead agency for system

responsibilities associated with MODU's and fixed and floating OCS

facilities. Other agency roles are identified where applicable. The

lead agency is responsible for coordinating with the other agency as

appropriate. The attachments to the table list the typical equipment

that is included in the system.

The MMS and USCG will work together to develop the standards

necessary to implement this MOU. Where the agencies have overlapping

responsibilities, they will work together to minimize duplication.

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Lead agency

Item System Sub-system --------------------------------------------------- Other agency role/comments

MODU Fixed Floating

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1............. Design & Operating

Overview/Plan.

1.a........... ................... Deepwater Operating N/A MMS MMS Where required.

Plan.

1.b........... ................... Design Basis USCG N/A USCG

Document.

1.c........... ................... Design, N/A MMS MMS Section applies to MMS's Certified

fabrication, and Verification Agent (CVA) Program.

installation

verification plans.

2............. Structural

Integrity.

2.a........... ................... Structural USCG MMS MMS & USCG USCG responsibilities for fabrication,

integrity, installation, and inspection of floating

modifications for units are found in 33 CFR Subchapter N.

construction and MMS responsibilities are found in 30 CFR

repair Subpart I. USCG and MMS will each review

requirements. the design of the turret and turret/hull

interface structure for ship-shape

floating facilities. All other aspects of

the design and fabrication of all ship-

shape floating facilities will receive

only USCG review. All design, fabrication,

and installation activities of all non-

ship-shape floating facilities will be

reviewed by both agencies.

[[Page 2662]]

2.b........... ................... Design USCG MMS MMS Establishes in-place design environmental

environmental criteria.

conditions.

.............. .............. USCG Establishes design environmental criteria

for intact and damage stability.

2.c........... ................... Risers (drilling, MMS MMS MMS Some pipeline risers may be subject to the

production, and Research and Special Programs

pipeline). Administration's (RSPA) jurisdiction.

3............. Floating Stability. ................... USCG N/A USCG USCG reviews and approves stability and

sends copies to MMS.

4............. Station Keeping.

4.a........... ................... Foundations........ USCG MMS MMS

4.b........... ................... Mooring and USCG MMS USCG & MMS USCG is not responsible for site specific

tethering systems. mooring analyses.

4.c........... ................... Dynamic positioning USCG N/A USCG

5............. Drilling, ................... MMS MMS MMS See Attachment A for description of

Completion, Well Drilling, Completion, Well Servicing &

Servicing & Workover Systems.

Workover.

6............. Production......... ................... MMS* MMS MMS See Attachment B for description of

Production Systems. * Production equipment

is not normally installed on a MODU.

However, such equipment may be installed

for a finite time and designed for

removal. In such cases, MMS is the lead

agency.

7............. Pipeline Operations ................... MMS MMS MMS Note: Certain pipelines are subject to MMS

and Components. MOU(s) with RSPA.

8............. Lightering ................... USCG USCG USCG

Equipment &

Procedures.

9............. Utility Systems

9.a........... ................... Boilers, pressure USCG MMS USCG Listed equipment/systems not supporting

vessels, waste drilling or production.

heat recovery

(from any engine

exhaust), water

heaters and other

piping or

machinery.

.............. .............. MMS Listed equipment/systems supporting

drilling or production.

9.b........... ................... High pressure USCG MMS USCG Listed system components and piping not

(H.P.) washdown. supporting drilling or production.

.............. .............. MMS Listed system components and piping

supporting drilling or production.

9.c........... ................... Seawater supply.... USCG MMS USCG

9.d........... ................... Compressed air..... USCG MMS USCG Listed system components and piping not

supporting drilling or production.

.............. .............. MMS Listed system components and piping

supporting drilling or production.

9.e........... ................... Potable wash and USCG USCG USCG

sanitary water.

9.f........... ................... Sewage unit & USCG USCG USCG

piping.

9.g........... ................... Diesel fuel........ USCG MMS USCG

9.h........... ................... Bilge & ballast, USCG N/A USCG

including pumps

and related

control systems.

9.i........... ................... Fuel gas from well. MMS MMS MMS For MODU's and floating facilities, when

powering drilling and production systems.

USCG .............. USCG For MODU's and floating facilities, when

powering emergency and ship-service

systems.

[[Page 2663]]

10............ Elevators for ................... USCG USCG USCG

Personnel.

11............ Aircraft Landing Decks, fuel USCG MMS USCG

and Refueling. handling, and

storage.

12............ Fire Protection ................... .............. .............. .................

12.a.......... ................... Fire protection, USCG USCG USCG See Attachment C for description of Fire

detection, and Protection, Detection, and Extinguishing.

extinguishing. Excludes MMS-regulated safety systems.

2.b........... ................... Structural fire USCG USCG USCG

protection for

accommodations.

13............ Safety Systems..... ................... .............. .............. ................. Includes interfaces between fire protection

systems and MMS regulated safety systems.

13.a.......... ................... Emergency shut-down MMS MMS MMS For MMS required systems. Excludes ``remote

systems. stopping devices'' required for USCG-

regulated systems.

13.b.......... ................... Gas detection...... MMS MMS MMS

13.c.......... ................... Drilling, MMS MMS MMS

production, well-

control safety,

and shutdown

systems.

13.d.......... ................... General alarm...... USCG USCG USCG Includes public address system when

integrated with general alarm system.

14............ Electrical Design & ................... .............. .............. .................

Equipment.

14.a.......... ................... Production......... MMS* MMS MMS See Attachment B for definition of

Production Systems. *Same comment as item

#6.

14.b.......... ................... Drilling systems... USCG MMS USCG See Attachment A for definition of Drilling

Systems.

.............. .............. MMS * *MMS is the lead agency for drilling

equipment installed for a finite time and

designed for removal.

14.c.......... ................... Emergency lighting USCG USCG USCG

power generation

and distribution.

14.d.......... ................... Hazardous areas USCG MMS MMS and USCG MMS and USCG will work on common, logical

classification. standards to minimize duplication of

effort for industry.

15............ Aids to Navigation. ................... USCG USCG USCG

16............ Communications ................... USCG USCG USCG

17............ Pollution ................... .............. .............. ................. ...........................................

Prevention.

17.a.......... ................... Pollution not USCG USCG USCG Garbage and plastics per the International

associated with Convention for the Prevention of Pollution

vessel transfers. from Ships MARPOL 73/78.

MMS MMS MMS Other Pollution.

17.b.......... ................... Petroleum and other USCG USCG USCG ...........................................

product transfers

to and from a

vessel (includes

lightering of

produced

hydrocarbons).

18............ Cranes and Material ................... .............. .............. ................. ...........................................

Handling

Equipment.

[[Page 2664]]

18.a.......... ................... Crane design, USCG MMS USCG ...........................................

certification, and

operations.

18.b.......... ................... Other Material USCG MMS USCG ...........................................

Handling Equip.

19............ Ventilation ................... .............. .............. ................. ...........................................

19.a.......... ................... Accommodations and USCG USCG USCG ...........................................

machinery spaces.

19.b.......... ................... Areas other than USCG MMS MMS ...........................................

accommodations or

machinery spaces.

20............ Life Saving ................... USCG USCG USCG ...........................................

Equipment.

21............ Workplace Safety

and Health.

21.a.......... ................... Personnel USCG USCG USCG ...........................................

protection

equipment.

21.b.......... ................... Hazardous material USCG USCG USCG ...........................................

storage & handling

(other than

produced

hydrocarbons).

22............ Living Quarters and ................... USCG USCG USCG Includes permanent and temporary units

Accommodation design & arrangement.

Spaces.

23............ General

Arrangements.

23.a.......... ................... Access/egress & USCG USCG USCG ...........................................

means of escape.

23.b.......... ................... Safety plan, fire USCG USCG USCG ...........................................

control or fire

equipment, and

lifesaving

equipment plans.

24............ Miscellaneous ................... .............. .............. ................. Supplements list of above mentioned

Systems and systems.

Operational

Requirements.

24.a.......... ................... Structural USCG MMS USCG USCG will copy MMS on approvals and

inspection compliance records. MMS recommends that

requirements. USCG at least meet the requirements of the

American Petroleum Institute's Recommended

Practice 2A (API-RP2A)--Planning,

Designing, and Constructing Fixed Offshore

Platforms Working Stress Design.

24.b.......... ................... Personnel USCG USCG USCG ...........................................

requirements for

marine and

lifesaving

operations.

24.c.......... ................... Emergency USCG USCG USCG ...........................................

evacuation plans.

24.d.......... ................... Drills--fire, USCG USCG USCG ...........................................

abandon, and

lifeboat.

[[Page 2665]]

24.e.......... ................... Inspection and MMS MMS MMS Includes hydrogen sulfide gas (H2S).

testing of all

production and

drilling equipment.

24.f.......... ................... Inspection and USCG USCG USCG ...........................................

testing of marine

and lifesaving

equipment.

24.g.......... ................... Well-head & MMS MMS MMS ...........................................

platform removal

(decommissioning).

24.h.......... ................... Safe welding, MMS MMS MMS ...........................................

burning and hot

tapping.

24.i.......... ................... Diving operations & USCG USCG USCG ...........................................

equipment.

24.j.......... ................... H2S contingency MMS MMS MMS Includes H2S personnel protection

plan (including equipment.

equipment,

control, and

detection systems).

25............ Investigation--Lead ................... .............. .............. ................. Agencies to consolidate/standardize and

Responsibility: eliminate duplication in reporting and

data-collection requirements (see section

VIII of this MOU).

25.a.......... ................... Oil Pollution MMS MMS MMS Addresses oil pollution reportable under

reportable under OSCLA.

the Outer

Continental Shelf

Lands Act (OSCLA).

25.b.......... ................... Oil Pollution under USCG USCG USCG Conduct preliminary assessments and follow-

the Clean Water on actions in accordance with the National

Act (CWA impact). Contingency Plan and investigation into

violation of CWA.

25.c.......... ................... Incidents involving USCG USCG USCG ...........................................

systems under USCG

jurisdiction.

25.d.......... ................... Incidents involving MMS MMS MMS ...........................................

systems under

MMS's jurisdiction.

26............ Administer Shutdown ................... MMS MMS MMS See Section V, Para C.2 of this MOU for the

or Resumption of Federal On Scene Coordinator (FOSC)

Operation of a responsibility for spill response.

Facility.

27............ Safety Analysis.... Safety analysis of USCG MMS MMS For MODU's see the requirements of 46 CFR

industrial systems. 58.60-11 and 58.60-13.

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Attachment A--Drilling, Completion, Well Servicing and Workover Systems

System requirements for operating the following equipment and

systems:

--Drilling, production, and workover risers

--Blowout prevention equipment and control systems

--Drilling system and related relief valves, vent system, pressure

vessels and piping, pumps, water systems, safety systems, cementing

systems, and circulating systems

--Riser and guideline tensioning systems

--Motion compensation systems

--Instruments and controls

--Atmospheric vessels and piping

--Fitness of the Drilling Unit

--Lifting and hoisting equipment associated with the derrick

--Cementing systems

--Circulating systems, including:

pipes and pumps for mud;

shale shakers; desanders;

[[Page 2666]]

degassers.

--Structures including derrick and sub-structure

--Bulk material storage and handling systems

--Other pressurized systems designed for industrial operations

Attachment B--Production Systems

Includes but not limited to the following equipment:

--Hydraulic systems

--Connections between production and workover (industrial) systems

--Production safety systems including subsurface and surface well

control

--Relief valves, relief headers, vent and flare systems

--Production wells and wellhead

--Well-handling equipment (contract drilling rig)

--Instrumentation, controls, and measurement (including oil and

gas)s

--Gas compression

--Process system and related pumps

--Odorization for gas piped into enclosures

--Process system and related pressure vessels and piping

--Process system and related heat exchangers, including waste heat

recovery units

--Chemical injection and treatment systems

Attachment C--Fire Protection, Detection and Extinguishing

Includes the following equipment:

--Deluge systems in the wellbay area

--Firewater pumps, piping, hose reel and monitor equipment

--Foam extinguishing equipment

--Fixed gaseous extinguishing equipment [carbon dioxide(CO2) and

halon alternatives]

--Fixed watermist extinguishing equipment

--Portable and semi-portable extinguishers

--Fire and smoke detection (excludes interfaces to MMS regulated

safety systems)

IV. Civil Penalties

The USCG reports violations of OCSLA statutes or regulations

that may result in civil penalty action to MMS. The USCG will

investigate and document OCSLA based violation cases according to

the procedures in 33 CFR 140.40 with the following clarification:

1. The cognizant Officer-in-Charge, Marine Inspection (OCMI)

makes the determination whether a violation ``constitutes or

constituted a threat of serious, irreparable, or immediate harm.''

If the OCMI determines:

a. That it does, then the OCMI will refer the case to MMS and

recommend that a civil penalty be assessed.

b. That it does not, then the OCMI will establish a reasonable

time for the violator to fix the problem. The OCMI may do this in

consultation with MMS, particularly on matters in which MMS has

expertise or knowledge of industry practice. If the violator does

not correct the problem, or does not file an appeal with the

appropriate USCG official in the allotted time, the OCMI will refer

the case to MMS, pursuant to 43 U.S.C. 1348(a).

When referring a case to MMS, the OCMI will forward the

following information:

i. The case file, which consists of a summary of the

investigation and a USCG determination of the regulations violated.

ii. A description of the seriousness of violation and any

incidents actually associated with the violation.

iii. If requested, additional information concerning the merits

of a civil penalty action. All physical evidence remains with the

USCG, but available to MMS upon request.

2. If the violator files an appeal of a USCG's enforcement

action the USCG will not forward the case to MMS until the appeal

has been resolved.

3. Upon receipt of the violation report, the MMS Regional Civil

Penalty Coordinator will appoint a Reviewing Officer (RO) who will

process the report in accordance with the MMS OCS Criminal/Civil

Penalties Program Guidebook.

4. Notification of the MMS RO's decision regarding the civil

penalty assessment, collection, compromise, or dismissal shall be

provided to the OCMI originating the violation report.

V. Oil Pollution Responsibilities

A. Certificates of Financial Responsibility (COFR)

1. The MMS issues certifications of oil-spill financial

responsibility for certain facilities located in the OCS and State

waters included in the definition of Covered Offshore Facility found

at 30 CFR 253.3. The COFR ensures that responsible parties can pay

for cleanup and damages from facility oil spills.

2. The MMS will provide COFR-related information to the USCG

upon request. Upon request from the USCG, MMS will provide available

information for any covered OCS facility (COF) in certain OCS and

the State waters included in the definition of Covered Offshore

Facility found at 30 CFR 253.3 that are involved in an oil pollution

incident including:

(1) Copies of the lease, permit, or right of use and easement

for the area in which the COF is located;

(2) Contacts for claims;

(3) Agents for service of process;

(4) Amounts guaranteed; and

(5) List of all responsible parties.

3. The USCG issues COFR for vessels and floating OCS facilities

which store oil. This COFR is in addition to the MMS COFR and

addresses the operator's financial responsibility for the clean up

and damages from oil discharges resulting from non-well-related

sources and produced oil stored onboard the floating OCS facility.

B. Oil Spill Preparedness and Response Planning

1. The MMS, for all facilities seaward of the coast line,

requires that responsible parties maintain approved Oil Spill

Response Plans (OSRP) consistent with the area contingency plan;

ensures that response personnel receive training; and that response

equipment is inspected. The MMS will require unannounced oil-spill

response drills. The MMS RS will advise the Federal On Scene

Coordinator (FOSC) of drills to coordinate participation, and avoid

conflict or duplication.

2. The USCG Captain of the Port serves as the pre-designated

FOSC in accordance with the National Contingency Plan. The

appropriate FOSC will also jointly approve OSRPs for floating

facilities which store oil. Participation in MMS drills will be at

the discretion of the FOSC. The FOSC will advise the MMS RS of

spill-response drills and activities, such as exercise and response

activities, occurring on facilities seaward of the coast line.

C. Spill Response

1. All spills are required to be reported to the National

Response Center (NRC). The NRC provides notification to the

appropriate agencies and State offices. Additionally, OCS facility

owners or operators are required to report spills of one barrel or

more to the MMS RS.

2. The FOSC will direct and monitor Federal, State, and private

actions, consult with responsible parties, and determine the removal

action. The MMS RS will direct measures to abate sources of

pollution from an OCS facility. However, if a discharge poses a

serious threat to public health, welfare, or the environment, in

accordance with Public Law 101-380 (OPA) Sec. 4201, the FOSC may

mitigate or prevent the substantial threat of a discharge and notify

the MMS RS as soon as possible. The MMS will authorize the return of

an OCS facility to operation in coordination with the FOSC.

VI. Exchanging Services and Personnel

To the extent its own operations and resources permit, each

agency will provide the other agency with assistance, technical

advice, and support, including transportation, if requested in

accordance with 43 U.S.C. 1348. Exchange of services and personnel

is non-reimbursable (except for pollution removal funding

authorizations for incident specific fund access). The assistance

may extend to areas beyond the OCS where one Agency's expertise will

benefit the other agency in applying and enforcing its safety

regulations.

VII. Other Cooperative Functions

1. Both agencies will exchange data and study results,

participate in research and development projects, and exchange early

drafts of rulemaking notices to avoid duplicative or conflicting

requirements.

2. Both agencies will review current standards, regulations, and

directives and will propose revisions to them as necessary in

keeping with the provisions of this MOU.

3. Both agencies will review reporting and data collection

requirements imposed on operators of OCS facilities and, where

feasible, eliminate or minimize duplicate reporting and data

collection requirements.

4. Each agency will conduct scheduled and unannounced

inspections to ensure compliance with its own requirements. If the

inspector notices deficiencies that fall within the responsibility

of the other agency, the deficiency will be reported to the other

agency for action. However, if the deficiency may cause serious or

irreparable harm to persons, property, or the environment, the

inspector may take the necessary preventative action. The

preventative action will then be reported to the other agency.

[[Page 2667]]

VIII. Accident Investigations

The MMS or the USCG is responsible for conducting investigations

and preparing a public report for each major fire, oil spillage,

serious injury, and fatality associated with OCS activities. To

avoid duplication of effort and to simplify administration, the

responsibility for investigating and preparing a public report for

these incidents rests with the agency that is listed in Section III

as being responsible for the system associated with the incident. In

addition, the MMS investigates blowouts and the USCG investigates

collisions.

For those incidents for which both agencies have an

investigative interest in the system associated with the incident,

one agency will assume lead investigative responsibility with

supporting participation by the other agency. The lead agency in a

joint investigative effort shall investigate and prepare, approve,

and release the report in accordance with the normal procedures of

that agency, subject to the following terms and conditions:

1. The lead agency shall be determined through mutual agreement.

If mutual agreement is not reached, each agency may decide to

conduct its own investigation.

2. The specific details of a supporting agency's participation

in a joint investigation shall be determined on a case-by-case basis

through mutual agreement.

3. Prior to the public release of a joint agency report, the

supporting agency will be afforded an opportunity to comment on the

report. If the supporting agency's conclusions and/or

recommendations differ with those of the lead agency, either both

conclusions and/or recommendations will be included in the lead

agency's report in a mutually acceptable manner, or a joint report

will not be issued, and each agency may issue separate reports.

IX. Implementing this MOU

1. Each agency will review its internal procedures and, where

appropriate, will revise them to accommodate the provisions of this

MOU. Each agency will also designate in writing one senior official

who will be responsible for coordinating and implementing the

provisions of this MOU.

2. Each agency will designate regional officials to be

responsible for coordinating and implementing the provisions of this

MOU in their respective regions.

3. The USCG--MMS MOU concerning regulation of activities and

facilities in the OCS, dated August 29, 1989 is canceled on the

effective date of this agreement.

4. If new technology (or new uses of current technology) require

a change to this MOU, the MMS regional office and appropriate USCG

district will work together to reach an agreement. The MMS regional

office and the USCG district will notify their respective

Headquarters office of any change. If the MMS regional office and

the USCG district office can't reach an agreement, it will be

elevated to MMS and USCG Headquarters. The new policy will become

part of a revised MOU the next time the MOU is revised.

X. Savings Provision

Nothing in this MOU alters, amends, or affects in any way the

statutory authority of MMS or the USCG.

XI. Effective Date

This MOU is effective upon signature.

XII. Termination

Both parties may amend this MOU by mutual agreement and either

agency may terminate it with a 30-day written notice.

Signed at Washington, DC, December 16, 1998.

James M. Loy,

Commandant, U.S. Coast Guard, Department of Transportation.

Cynthia Quarterman,

Director, Minerals Management Service, Department of Interior.

[FR Doc. 99-817 Filed 1-14-99; 8:45 am]

BILLING CODE 4310-MR-P