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					                                                                        Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                             28639

                                                  affiliate thereof, the Federal Home Loan                it has first obtained the prior written                but not limited to, cease-and-desist
                                                  Mortgage Corporation and any affiliate                  approval of the Director.                              proceedings and civil money penalties.
                                                  thereof, any Federal Home Loan Bank;                       (2) The restriction in paragraph (d)(1)             CHAPTER XVII—OFFICE OF FEDERAL
                                                  the term ‘‘regulated entities’’ means,                  of this section does not prohibit a                    HOUSING ENTERPRISE OVERSIGHT,
                                                  collectively, the Federal National                      regulated entity from—                                 DEPARTMENT OF HOUSING AND URBAN
                                                  Mortgage Association and any affiliate                     (i) Disclosing or reporting such fraud              DEVELOPMENT
                                                  thereof, the Federal Home Loan                          or possible fraud pursuant to legal
                                                  Mortgage Corporation and any affiliate                  requirements, including reporting to                   PART 1731—[REMOVED]
                                                  thereof, and the Federal Home Loan                      appropriate law enforcement or other
                                                                                                                                                                   2. Remove part 1731.
                                                  Banks.                                                  governmental authorities; or
                                                     Safety and Soundness Act means the                      (ii) Taking any legal or business                     Dated: June 4, 2009.
                                                  Federal Housing Enterprises Financial                   action it may deem appropriate,                        James B. Lockhart III,
                                                  Safety and Soundness Act of 1992, as                    including any action involving the party               Director, Federal Housing Finance Agency.
                                                  amended by the Federal Housing                          or parties connected with the fraud or                 [FR Doc. E9–14189 Filed 6–16–09; 8:45 am]
                                                  Finance Regulatory Reform Act of 2008,                  possible fraud.                                        BILLING CODE P
                                                  Division A of the Housing and                              (e) No waiver of privilege. A regulated
                                                  Economic Recovery Act of 2008, Public                   entity does not waive any privilege it
                                                  Law 110–289, 122 Stat. 2654 (2008).                     may possess under any applicable law
                                                                                                                                                                 DEPARTMENT OF THE INTERIOR
                                                                                                          as a consequence of reporting fraud or
                                                  § 1233.3   Reporting.                                   possible fraud under this part.                        Minerals Management Service
                                                     (a) Timeframe for reporting. (1) A
                                                  regulated entity shall submit to the                    § 1233.4 Internal controls, procedures, and
                                                                                                          training.                                              30 CFR Part 250
                                                  Director a written report relating to any
                                                  fraud or possible fraud occurring in                       (a) In General. Each regulated entity               RIN 1010–AD15
                                                  connection with a loan, a series of loans               shall establish and maintain adequate
                                                  or other financial instruments that the                 and efficient internal controls and                    [Docket ID MMS–2008–OMM–0003]
                                                  regulated entity has purchased or sold,                 procedures and an operational training
                                                  and shall do so promptly after                          program to assure an effective system to               Safety and Environmental Management
                                                  identifying such fraud or possible fraud                detect and report fraud in connection                  Systems for Outer Continental Shelf
                                                  or is notified about such fraud or                      with the purchase or sale of a loan or                 Oil and Gas Operations
                                                  possible fraud by law enforcement or                    other financial instrument.                            AGENCY: Minerals Management Service
                                                  other government authority.                                (b) Examination. The examination by                 (MMS), Interior.
                                                     (2) In addition to submitting a report               FHFA of fraud reporting programs of
                                                                                                                                                                 ACTION: Proposed rule.
                                                  in accordance with paragraph (a)(1) of                  each regulated entity must include an
                                                  this section, in any situation that would               evaluation of the extent to which                      SUMMARY: The MMS proposes to require
                                                  have a significant impact on the                        internal policies, procedures, and                     operators to develop and implement a
                                                  regulated entity, the regulated entity                  training programs of the regulated entity              Safety and Environmental Management
                                                  shall immediately report any fraud or                   minimize risks from fraud and to the                   System to address oil and gas operations
                                                  possible fraud to the Director by                       extent that fraud or possible fraud is                 in the Outer Continental Shelf. The
                                                  telephone or electronic communication.                  consistently reported to FHFA.                         Safety and Environmental Management
                                                     (b) Format for reporting. (1) The                    § 1233.5    Protection from liability for              System would consist of four
                                                  report shall be in such format and shall                reports.                                               elements—Hazards Analysis,
                                                  be filed in accordance with such                           As provided by section 1379E of the                 Management of Change, Operating
                                                  procedures that the Director may                        Safety and Soundness Act (12 U.S.C.                    Procedures, and Mechanical Integrity—
                                                  prescribe.                                              4642(b)), a regulated entity that, in good             that, until now, have not been covered
                                                     (2) The Director may require a                       faith, submits a report pursuant to this               in our regulations. The MMS analyzed
                                                  regulated entity to provide such                        part, and any entity-affiliated party,                 accident panel investigation reports,
                                                  additional or continuing information                    that, in good faith, submits or requires               incident reports, and incidents of
                                                  relating to such fraud or possible fraud                a person to submit a report pursuant to                noncompliance and determined that the
                                                  as the Director deems appropriate.                      this part, shall not be liable to any                  root cause of most safety and
                                                     (3) A regulated entity may satisfy the               person under any provision of law or                   environmental accidents and incidents
                                                  reporting requirements of this section by               regulation, any constitution, law, or                  is one or more of these four elements.
                                                  submitting the required information on                  regulation of any State or political                   The MMS believes that requiring
                                                  a form or in another format used by any                 subdivision of any State, or under any                 operators to implement a Safety and
                                                  other regulatory agency, provided it has                contract or other legally enforceable                  Environmental Management System
                                                  first obtained the prior written approval               agreement (including any arbitration                   will reduce the risk and number of
                                                  of the Director.                                        agreement) for such report, or for any                 accidents, injuries, and spills during
                                                     (c) Retention of records. A regulated                failure to provide notice of such report               Outer Continental Shelf activities.
                                                  entity shall maintain a copy of any                     to the person who is the subject of such               DATES: Submit comments by September
                                                  report submitted to the Director and the                report, or any other persons identified                15, 2009. The MMS may not fully
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                                                  original or business record equivalent of               in the report.                                         consider comments received after this
                                                  any supporting documentation for a                                                                             date. Submit comments to the Office of
                                                  period of five years from the date of                   § 1233.6    Supervisory action.                        Management and Budget on the
                                                  submission.                                               Failure by a regulated entity to                     information collection burden in this
                                                     (d) Nondisclosure. (1) A regulated                   comply with this part may subject the                  proposed rule by July 17, 2009. This
                                                  entity may not disclose to any person                   regulated entity or the board members,                 does not affect the deadline for the
                                                  that it has submitted a report to the                   officers, or employees thereof to                      public to comment to MMS on the
                                                  Director pursuant to this section, unless               supervisory action by FHFA, including                  proposed regulations.


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                                                  28640                 Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                  ADDRESSES: You may submit comments                      voluntary, but if MMS decided to                       would describe management
                                                  on the rulemaking by any of the                         mandate a SEMS, it should be a partial                 commitment to safety and the
                                                  following methods. Please use the                       SEMS requirement due to the number of                  environment, as well as policies and
                                                  Regulation Identifier Number (RIN)                      accidents that are related to the four                 procedures to assure safety and
                                                  1010-AD15 as an identifier in your                      critical elements identified. A partial                environmental protection while
                                                  message. See also Public Availability of                SEMS would consist of: Hazards                         conducting OCS operations (including
                                                  Comments under Procedural Matters.                      Analysis, Management of Change,                        those operations conducted by
                                                     • Federal eRulemaking Portal: http://                Operating Procedures, and Mechanical                   contractor and subcontractor personnel).
                                                  www.regulations.gov. Under the tab                      Integrity. The other four comments                     As company management and worker
                                                  ‘‘More Search Options,’’ click                          received recommended that MMS move                     attitudes play a critical role in
                                                  ‘‘Advanced Docket Search,’’ then select                 forward with a comprehensive SEMS                      determining the safety of operations and
                                                  ‘‘Minerals Management Service’’ from                    approach, i.e., the 12 elements listed in              environmental protection, a SEMS
                                                  the agency drop-down menu, then click                   American Petroleum Institute’s (API)                   program would play a major role in
                                                  the submit button. In the Docket ID                     Recommended Practice (RP) 75,                          focusing the attention of top
                                                  column, select MMS–2008–OMM–0003                        Development of a Safety and                            management on safety and the marine
                                                  to submit public comments and to view                   Environmental Management Program                       and coastal environments. This will
                                                  supporting and related materials                        for Offshore Operations and Facilities,                assure to the greatest extent possible, a
                                                  available for this rulemaking.                          Third Edition, May 2004. A                             broad organizational commitment to
                                                  Information on using Regulations.gov,                   comprehensive SEMS would consist of:                   human safety and environmental
                                                  including instructions for accessing                       • Safety and environmental                          protection.
                                                  documents, submitting comments, and                     information;                                              The MMS proposes that the SEMS
                                                  viewing the docket after the close of the                  • Hazards analysis;                                 program contain the four elements
                                                  comment period, is available through                       • Management of change;                             mentioned above which are described in
                                                  the site’s ‘‘User Tips’’ link. The MMS                     • Operating procedures;                             greater detail as:
                                                  will post all comments.                                    • Safe work practices;
                                                                                                                                                                 Hazards Analyses
                                                     • Mail or hand-carry comments to the                    • Training;
                                                  Department of the Interior; Minerals                       • Mechanical integrity;                                This element would require that a
                                                  Management Service; Attention:                             • Pre-startup review;                               hazards analysis (facility level) be
                                                                                                             • Emergency response and control;                   conducted for all facilities. The purpose
                                                  Regulations and Standards Branch
                                                                                                             • Investigations of incidents;                      of the analysis is to identify, evaluate,
                                                  (RSB); 381 Elden Street, MS–4024,                          • Auditing; and                                     and where unacceptable, reduce the
                                                  Herndon, Virginia 20170–4817. Please                       • Records and documentation.                        likelihood and/or minimize the
                                                  reference ‘‘Safety and Environmental                       Most comments expressed that API                    consequences of uncontrolled releases
                                                  Management Systems for Outer                            RP 75 provides excellent guidance on                   of oil and gas and other safety or
                                                  Continental Shelf Oil and Gas                           developing a SEMS plan, and allows                     environmental incidents. With respect
                                                  Operations, 1010–AD15’’ in your                         operators and contractors to tailor the                to analysis methods, MMS suggests that
                                                  comments and include your name and                      program to their individual needs and                  operators use API RP 14 C,
                                                  return address.                                         corporate cultures. The commenters do                  Recommended Practice for Analysis,
                                                     • Send comments on the information                   not support MMS approving SEMS                         Design, Installation, and Testing of
                                                  collection in this rule to: Interior Desk               plans, rather, a third party should                    Basic Surface Safety Systems for
                                                  Officer 1010–AD15, Office of                            determine or certify whether a SEMS                    Offshore Production Platforms, Seventh
                                                  Management and Budget; 202–395–6566                     plan is viable, because MMS may not                    Edition, March 2001; or API RP 14J,
                                                  (fax); e-mail: oira_docket@omb.eop.gov.                 have the resources and expertise to                    Recommended Practice for Design and
                                                  Please also send a copy to MMS.                         approve a minimum of one plan for                      Hazards Analysis for Offshore
                                                  FOR FURTHER INFORMATION CONTACT: For                    each OCS operator.                                     Production Facilities, Second Edition,
                                                  questions on technical issues contact                      After reviewing and discussing the                  May 2001, as guides, as well as other
                                                  David Nedorostek, Safety and                            comments, MMS proposes to require                      accepted documents and practices. In
                                                  Enforcement Branch at                                   each offshore lessee/operator to                       addition, this element would also
                                                  david.nedorostek@mms.gov or (703)                       develop, implement, maintain, and                      require that a job hazard analysis
                                                  787–1029.                                               operate under a SEMS program                           (operations/task level) be performed to
                                                  SUPPLEMENTARY INFORMATION: On May                       composed of the four elements. This                    identify and evaluate hazards of a job/
                                                  22, 2006, MMS published an Advance                      decision was based on incident                         task for the purpose of hazards control
                                                  Notice of Proposed Rulemaking (ANPR)                    investigation findings, and performance                or elimination.
                                                  in the Federal Register (71 FR 29277) to                reviews with operators which confirmed
                                                  seek comments and information on how                    that the majority of the accidents on the              Management of Change (MOC)
                                                  to improve our regulatory approach to                   OCS are related to the four elements in                   This element would require lessees/
                                                  Safety and Environmental Management                     the proposed rule (i.e., Hazards                       operators to document and analyze all
                                                  Systems (SEMS) for operations                           Analysis, Management of Change,                        proposed facility changes to determine
                                                  conducted in the Outer Continental                      Operating Procedures, and Mechanical                   possible adverse safety and
                                                  Shelf (OCS). The ANPR examined a                        Integrity). Since the existing regulations             environmental impacts, with the
                                                  variety of approaches to implementing                   (30 CFR 250) do not specifically address               exception of replacement in kind. There
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                                                  SEMS from voluntary to mandatory, and                   these four elements, MMS finds that it                 are a number of specific topics to be
                                                  from partial SEMS to comprehensive                      is appropriate to cover these SEMS                     covered in this analysis, including
                                                  SEMS.                                                   elements in its rule. Each SEMS                        changes in: facilities and procedures,
                                                     During the ANPR comment period,                      program would be tailored to the scale                 personnel, work practices, equipment
                                                  eight comments were received from the                   and complexity of the company’s                        (including addition of new equipment
                                                  public. One comment recommended                         operation, and structured to include                   or modifications to existing equipment),
                                                  keeping SEMS voluntary. Three                           accountability for contractors and                     and the safety and environmental
                                                  comments recommended keeping SEMS                       subcontractors. The SEMS program                       implications of these changes.


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                                                                              Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                                                                                       28641

                                                  Operating Procedures                                                     environmentally sound operations in                                          decision to require a SEMS program,
                                                                                                                           the OCS.                                                                     included the following:
                                                    This element would require OCS oil                                       The proposed decision to require a
                                                  and gas operators’ management officials                                                                                                               Accident Panel Investigation Reports
                                                                                                                           SEMS program consisting of the four
                                                  to include requirements for written                                      elements is based on incident                                                  Accident panel investigation reports
                                                  facility operating procedures designed                                   investigation findings, an analyses of                                       are prepared by MMS for select major
                                                  to enhance efficient, safe, and                                          Incidents of Noncompliance (INC) data,                                       accidents. An analysis of 33 accident
                                                  environmentally sound operations.                                        performance reviews with operators,                                          panel reports prepared by MMS from
                                                  While operating procedures are                                           and the fact that existing MMS                                               2000–2007 revealed that many fatalities
                                                  reviewed as part of MOC procedures,                                      regulations do not address these four                                        and injuries occurred while performing
                                                  MMS would also recommend that these                                      elements. Requiring operators to                                             routine tasks such as drilling,
                                                  procedures be reviewed separately to                                     implement these four elements of an                                          construction, coil tubing operations, and
                                                  ensure that they reflect current                                         integrated SEMS program would                                                crane and other lifting events.
                                                  practices.                                                               address human factor issues in safety                                          In addition, most of these accident
                                                  Mechanical Integrity                                                     and environmental protection. Most                                           panel reports made recommendations
                                                                                                                           industrial accidents and spills result                                       that relate to one of the following four
                                                    This element would require that                                        from human error or organizational                                           SEMS elements: Hazards Analysis,
                                                  procedures are in place to ensure that                                   errors, not device or equipment failure.                                     Management of Change, Operating
                                                  equipment is designed, fabricated,                                       These four elements would address                                            Procedures, and Mechanical Integrity.
                                                  installed, tested, inspected, monitored,                                 these types of accidents by encouraging                                        The accident panel reports can be
                                                  and maintained in a manner consistent                                    the use of sound management principles                                       viewed at the following Web site
                                                  with appropriate service requirements,                                   and safety procedures.                                                       address:http://www.gomr.mms.gov/
                                                  manufacturer’s recommendations, and                                        The MMS’s evaluation of safety                                             homepg/offshore/safety/acc_repo/
                                                  industry standards to promote safe and                                   information, which led us to the                                             accindex.html

                                                                                                                                          CONTRIBUTING CAUSES
                                                                                                                        Hazards                  Operating                 Mechanical                Management                      Injury                    Fatality
                                                                     MMS report                                         analysis                procedures                  integrity                 of change                     number                     number

                                                  MMS    2007–058       ........................................              X                          X               ........................              X               ........................              1
                                                  MMS    2007–045       ........................................              X                          X               ........................              X               ........................              1
                                                  MMS    2007–037       ........................................              X                          X               ........................   ........................   ........................              1
                                                  MMS    2006–070       ........................................              X                          X                          X               ........................   ........................              1
                                                  MMS    2006–058       ........................................              X                          X               ........................   ........................   ........................   ........................
                                                  MMS    2006–047       ........................................              X                          X               ........................   ........................   ........................   ........................
                                                  MMS    2006–039       ........................................   ........................              X               ........................   ........................   ........................   ........................
                                                  MMS    2006–021       ........................................   ........................              X               ........................   ........................   ........................   ........................
                                                  MMS    2006–002       ........................................              X                          X               ........................   ........................   ........................              1
                                                  MMS    2005–027       ........................................   ........................              X                          X                          X               ........................   ........................
                                                  MMS    2005–007       ........................................   ........................              X                          X               ........................   ........................   ........................
                                                  MMS    2004–078       ........................................              X                          X               ........................              X               ........................              1
                                                  MMS    2004–075       ........................................              X                          X                          X               ........................   ........................   ........................
                                                  MMS    2004–048       ........................................   ........................              X                          X               ........................   ........................   ........................
                                                  MMS    2004–046       ........................................              X                          X               ........................              X                          3               ........................
                                                  MMS    2004–010       ........................................              X               ........................   ........................   ........................   ........................   ........................
                                                  MMS    2004–004       ........................................              X               ........................   ........................   ........................   ........................              1
                                                  MMS    2003–068       ........................................   ........................              X               ........................   ........................   ........................   ........................
                                                  MMS    2003–046       ........................................   ........................              X               ........................   ........................   ........................   ........................
                                                  MMS    2003–023       ........................................   ........................   ........................   ........................              X               ........................   ........................
                                                  MMS    2002–080       ........................................   ........................   ........................   ........................              X               ........................   ........................
                                                  MMS    2002–076       ........................................              X               ........................              X                          X               ........................              1
                                                  MMS    2002–075       ........................................              X               ........................   ........................   ........................   ........................              1
                                                  MMS    2002–062       ........................................   ........................   ........................   ........................              X                          2                          1
                                                  MMS    2002–059       ........................................              X               ........................              X               ........................              1                          1
                                                  MMS    2002–040       ........................................   ........................   ........................              X               ........................   ........................   ........................
                                                  MMS    2001–084       ........................................   ........................   ........................              X                          X               ........................   ........................
                                                  MMS    2001–045       ........................................   ........................   ........................              X                          X               ........................              1
                                                  MMS    2001–042       ........................................              X               ........................              X                          X               ........................              1
                                                  MMS    2001–010       ........................................              X               ........................   ........................              X                          1               ........................
                                                  MMS    2001–009       ........................................   ........................              X               ........................              X               ........................   ........................
                                                  MMS    2001–005       ........................................              X               ........................   ........................              X               ........................   ........................
                                                  MMS    2000–089       ........................................              X               ........................              X               ........................   ........................              1

                                                       Total = 33 .........................................           Total = 19                 Total = 18                 Total = 12                 Total = 15                  Total = 7                 Total = 14
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                                                    The table shows that the accidents                                     causes that are related to the four                                          there was a lack of written procedures;
                                                  covered by 16 of the 33 panel reports                                    elements: (1) A lack of communication                                        (3) an onsite supervisor failed to enforce
                                                  resulted in a combined 21 fatalities and                                 between the operator and contractor(s);                                      existing procedures or practices; (4) a
                                                  injuries. The analysis done on the                                       (2) no job hazard analysis was                                               lack of written safe work procedural
                                                  accidents identified six contributing                                    conducted prior to beginning work, or                                        guidelines; (5) integrity of the facilities


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                                                  28642                         Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                  and equipment were not maintained                                           The majority of incidents occurring in                                                                               Number of
                                                                                                                                                                                                                  SEMS element
                                                  according to recommended practices;                                      the OCS were related to operational and                                                                                  incidents
                                                  and (6) workplace hazards were not                                       maintenance procedures or human
                                                  identified or corrected. The MMS                                         error. These incidents are not addressed                                   Mechanical Integrity ..................                 475
                                                  maintains that at least some of these                                    by the hardware-oriented compliance                                        Operating Procedures ..............                     481
                                                  accidents could have been minimized or                                   inspections used by MMS OCS
                                                  even prevented if the operator had                                       inspectors. Additionally, of the 1,443                                     OCS Spill Analysis
                                                  implemented a SEMS.                                                      incidents involving injuries, fires, and
                                                                                                                                                                                               The MMS performed a root cause
                                                  Incident Analysis                                                        pollution on or from production
                                                                                                                           facilities, only 25 were due to failure of                        analysis of OCS spills over 50 barrels
                                                    The MMS also conducted a study of                                      a safety device. The majority of the                              (bbls) from 2001–2007 with respect to
                                                  1,443 incidents that occurred in OCS                                     1,443 incidents had at least 1 of the                             the 4 elements. While root causes could
                                                  waters from 2001–2007 to determine if                                    following 4 elements as a contributing                            be linked to failing to properly
                                                  these events were associated with any of                                 cause for the event occurring:                                    implement 1 of 4 elements, operating
                                                  the 4 SEMS elements. The events                                                                                                            procedures and mechanical integrity
                                                  reviewed included 41 fatalities, 302                                                                                           Number of   contributed to the greatest number of
                                                  injuries, 10 losses of well control, 11                                               SEMS element                              incidents  these spills, and the 4 elements together
                                                  collisions, 476 fires, 356 pollution                                                                                                       could account for over 3⁄4 of the OCS
                                                  events, and 224 crane and other lifting                                   Management of Change ...........                             108 spills.
                                                  events (e.g., hoists, winches, etc.).                                     Hazards Analysis ......................                         185

                                                                                                                                                                        2001         2002         2003         2004            2005   2006      2007       Sums

                                                  Total OCS spills >50 bbl—Multiple spills, each >50 bbl, may occur during a
                                                    single event. Spill categories include: crude/condensate; refined petro-
                                                    leum (diesel, mineral oil); synthetic-based fluids; and chemical (e.g.,
                                                    ZnBr, Glycol). ...............................................................................................              8         13            11          26           42     16           5     ..........
                                                  Spills Related to Weather/Hurricanes ..............................................................                   ..........         4      ..........        15           35      4           1     ..........
                                                  Spill Events Unrelated to Weather ..................................................................                          8          9            11           9            7     12           4     ..........
                                                  Suggested Root Cause—Related to API RP 75:

                                                        Hazards Analysis ......................................................................................                1            1     ..........   ..........         1      1    ..........           4

                                                        Management of Change ...........................................................................                ..........          1     ..........          1           1      1    ..........          4

                                                        Operating Procedures ...............................................................................                   3            4            5            5           3      5           1          26

                                                        Mechanical Integrity ..................................................................................                4            1            2            1           1      2           3          14



                                                  Incidents of Noncompliance (INCs)                                          • G–111 (Equipment maintained in a                                       percent) were directly related to one or
                                                                                                                           safe condition), and                                                       more of the following four SEMS
                                                    The MMS inspectors issue three                                           • G–112 (Safety of personnel and all                                     elements: Hazards Analysis (including
                                                  General INCs (G-INCs) that potentially                                   necessary precautions taken to correct                                     job hazard analysis), Operating
                                                  relate to elements within a SEMS. The                                    and remove any hazards).                                                   Procedures, Mechanical Integrity, and
                                                  following summarizes these INCs:                                           The MMS issued 3,132 of these types                                      Management of Change. The following
                                                    • G–110 (Operations conducted in a                                     of G–INCs during 2003–2007 for drilling                                    table depicts the G–INCs written for
                                                  safe and workmanlike manner),                                            and production activities. Of these 3,132
                                                                                                                                                                                                      drilling and production activities:
                                                                                                                           G–INCs, 2,964 (approximately 95
                                                                                                                               G–INCS ISSUED FROM 2003–2007
                                                                                                                                                                                                                                   Drilling      Production
                                                                                                                          SEMS elements                                                                                          percentage      percentage

                                                  Management of Change ..............................................................................................................................................                    10                     11
                                                  Hazards Analysis .........................................................................................................................................................             25                     16
                                                  Operating Procedures ..................................................................................................................................................                26                     24
                                                  Mechanical Integrity .....................................................................................................................................................             39                     49



                                                     The MMS also reviewed records of                                      operations during field inspections each                                   venting violations, broad-based non-
                                                  violations of Environmental INCs (E–                                     year. The data indicate no discernible                                     compliance with lease stipulations,
                                                  INCs). The E–INCs focus on water                                         trend of improvement by industry over                                      approved plans, and permit
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                                                  quality as it relates to mud/oil/chemical                                the past 7 years (see the following tables                                 applications. Similar trends to those
                                                  spills and marine debris (E–100 thru E–                                  covering 2001–2007).                                                       previously described for the issuance of
                                                  202). Over the past 7 years, MMS has                                        The MMS has issued many other INCs                                      E–INCs are also observed in the
                                                  issued about 150 E–INCs for non-                                         that relate to environmental protection,                                   issuance of other INCs that address
                                                  compliant production and drilling                                        including those that address flaring and                                   environmental concerns.




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                                                                                Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                                                                 28643

                                                               RATIO OF TOTAL PRODUCTION OPERATION E–INCS AND NUMBER OF COMPONENTS INSPECTED PER YEAR
                                                                                                                                                                                                                   Total        Components
                                                                                                                         Year                                                                                                                  Ratio *
                                                                                                                                                                                                                  E–INCs         inspected

                                                  2001   ...................................................................................................................................................            156          66,065       0.0024
                                                  2002   ...................................................................................................................................................            173          68,355       0.0025
                                                  2003   ...................................................................................................................................................            134          66,056       0.0020
                                                  2004   ...................................................................................................................................................            141          67,267       0.0021
                                                  2005   ...................................................................................................................................................            122          61,520       0.0020
                                                  2006   ...................................................................................................................................................            133          56,930       0.0023
                                                  2007   ...................................................................................................................................................            111          46,384       0.0024
                                                     * Rounded.

                                                                              RATIO OF TOTAL DRILLING OPERATION E–INCS AND NUMBER OF WELLS SPUD PER YEAR
                                                                                                                                                                                                                   Total
                                                                                                                         Year                                                                                                   Wells spud     Ratio *
                                                                                                                                                                                                                  E–INCs

                                                  2001   ...................................................................................................................................................               19         1,264        0.015
                                                  2002   ...................................................................................................................................................                4           941        0.004
                                                  2003   ...................................................................................................................................................               10           893        0.011
                                                  2004   ...................................................................................................................................................               11           915        0.012
                                                  2005   ...................................................................................................................................................               10           817        0.012
                                                  2006   ...................................................................................................................................................                8           763        0.010
                                                  2007   ...................................................................................................................................................                7           607        0.012
                                                     * Rounded.


                                                     As a result of MMS research                                              habits, and assures that workers are                                             These audits would be conducted in an
                                                  conducted on accident panel                                                 properly trained. The MMS believes that                                          office environment and/or in the field,
                                                  investigations and reports, incident                                        if OCS oil and gas operations are better                                         and cover both a broad range of
                                                  analysis, and INCs, it appears that                                         planned and organized, then the                                                  activities or be focused on a particular
                                                  equipment failure is rarely the primary                                     likelihood of injury to workers and the                                          area (e.g., records, gas compressors,
                                                  cause of the incident or accident. This                                     risk of environmental pollution will be                                          blowout preventers, or documentation)
                                                  is due to technological advances which                                      further reduced.                                                                 as appropriate. Auditors must meet the
                                                  have provided industry with very                                               While this proposed rule requires                                             qualifications as proposed in this rule.
                                                  efficient and reliable equipment for                                        each offshore lessee/operator to                                                    The MMS may, at our discretion,
                                                  finding, producing, and transporting                                        develop, implement, maintain, and                                                evaluate independent third parties, meet
                                                  offshore oil and gas. However, in most                                      operate a SEMS program consisting of                                             with lessees and operators to
                                                  cases, accidents and oil spills can be                                      the 4 elements identified in this                                                periodically review the results of SEMS
                                                  traced to human error and/or                                                proposed rule, nothing prohibits the                                             program audits, and conduct announced
                                                  organizational failures. For that reason,                                   lessee/operator from adopting a more                                             or unannounced evaluations with MMS
                                                  operators must ensure that safe and                                         comprehensive SEMS approach as set                                               personnel and/or independent third
                                                  environmentally sound operating                                             forth in API RP 75. The MMS                                                      parties to determine SEMS plan
                                                  practices are followed. The MMS finds                                       encourages industry to incorporate the                                           compliance and effectiveness. The MMS
                                                  it important to focus our efforts on                                        comprehensive elements in their SEMS                                             would be more inclined to conduct a
                                                  ensuring that those who use the                                             program.                                                                         SEMS evaluation on an operator that
                                                  equipment do so safely and responsibly.                                        In addition to industry complying                                             has a history of poor performance. Poor
                                                  More progress can be made toward                                            with the 4 elements and electing to                                              performance may be based on the
                                                  achieving our goal of clean and safe                                        model their SEMS program after a                                                 number and/or type of incidents of non-
                                                  OCS operations by concentrating on                                          comprehensive SEMS program such as                                               compliance, civil or criminal penalties,
                                                  human behavior. The MMS regulations,                                        API RP 75, lessees and operators are                                             injuries, fatalities, accidents, fires,
                                                  historically, have focused on the                                           also encouraged to consider                                                      losses of well control, explosions,
                                                  installation, operation, testing, and                                       implementing the International                                                   collisions, pollution incidents, and/or
                                                  inspection of safety and pollution                                          Organization of Standardization (ISO)                                            damage to the marine environment.
                                                  prevention equipment, and risk based                                        9001, Quality Management Systems—                                                Lessees and operators would be
                                                  safety practices related to personnel.                                      Requirements; and ISO 14001,                                                     responsible for all costs associated with
                                                  Ensuring proper equipment operation,                                        Environmental Management Systems—                                                any independent third party evaluation
                                                  however, does not necessarily ensure                                        Requirements.                                                                    of their SEMS plan.
                                                  clean and safe operations. The research                                        This proposed rule would require                                                 In this proposed rule, MMS would
                                                  consistently points to the                                                  lessees and operators to have their                                              require operators, on an annual basis, to
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                                                  disproportionate contribution of human                                      SEMS program audited at least once                                               submit the number of hours worked for
                                                  and organizational errors to accidents                                      every 3 years by either an independent                                           all company and contract employees
                                                  and oil spills. The MMS believes that                                       third party or by qualified personnel                                            (people on the facility) during
                                                  operations are safer when management                                        designated within the company. A                                                 production, drilling, pipeline, and
                                                  systematically encourages individuals to                                    knowledgeable and experienced auditor                                            construction activities (which includes
                                                  be safety conscious, provides adequate                                      would audit the SEMS program to                                                  the adding or removing of equipment
                                                  resources, fosters safe worksite                                            determine if an OCS lessee and operator                                          and/or facility modifications). This
                                                  practices, promotes good housekeeping                                       is complying with the SEMS plan.                                                 information is submitted on Form


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                                                  28644                 Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                  MMS–131 on an annual basis. We use                      train offshore employees and                             Small lessees/operators that operate
                                                  the ‘‘hours worked’’ information to                     contractors.                                           under this rule fall under the Small
                                                  calculate Occupational Safety and                          Comments on this proposed SEMS                      Business Administration’s (SBA) North
                                                  Health Administration-style safety and                  rule are requested. Commenters are                     American Industry Classification
                                                  health indices. The MMS considers the                   encouraged to submit detailed                          System (NAICS) codes 211111, Crude
                                                  information to be significant to help us                comments with justifications or                        Petroleum and Natural Gas Extraction,
                                                  evaluate industry’s continued                           background information supporting                      and 213111, Drilling Oil and Gas Wells.
                                                  improvement of safety and                               their responses. In addition, we intend                For these NAICS code classifications, a
                                                  environmental management in the OCS.                    to conduct at least one public workshop                small company is one with fewer than
                                                  Information on Form MMS–131                             on this proposed SEMS rule during the                  500 employees. Based on these criteria,
                                                  includes company identification,                        upcoming comment period. We will                       an estimated 70 percent (91 operators)
                                                  number of company/contractor injuries                   announce the time and location in a                    of them are considered small. This
                                                  and/or illnesses suffered, company/                     separate document.                                     proposed rule, therefore, would affect a
                                                  contractor hours worked, EPA National                                                                          substantial number of small entities.
                                                  Pollutant Discharge Elimination System                  Procedural Matters
                                                  (NPDES) permit non-compliances and                                                                             Assumptions
                                                                                                          Regulatory Planning and Review
                                                  oil spill volumes for spills less than 1                (Executive Order (E.O.) 12866)                            In order to more accurately represent
                                                  barrel. All pieces of information are                                                                          costs associated with implementing this
                                                                                                             This proposed rule is not a significant
                                                  reported as collected during one                                                                               rule, MMS made the following
                                                                                                          rule as determined by the Office of
                                                  calendar year. We use the information                                                                          assumptions concerning the costs
                                                  obtained from this form to develop                      Management and Budget (OMB) and is
                                                                                                                                                                 associated with the requirements in the
                                                  industry average incident rates that help               not subject to review under E.O. 12866.
                                                                                                                                                                 proposed rulemaking.
                                                  to describe how well the offshore oil                      (1) This proposed rule would not have                  • Because of the wide variation in
                                                  and gas industry is performing. Using                   an annual effect of $100 million or more               company size, we have grouped
                                                  the produced data allows MMS to better                  on the economy. The MMS estimates                      operators into three classes (High,
                                                  focus our regulatory and research                       that it would cost OCS oil and gas                     Moderate, and Low Activity).
                                                  programs on areas where the                             lessees and operators $12,673,967 to                      • We have used the results of 10 years
                                                  performance measures indicate that                      comply with the requirements in the                    of voluntary SEMS Performance
                                                  operators are having difficulty meeting                 proposed rulemaking. This estimate                     Measures reporting by OCS operators to
                                                  our expectations.                                       includes the initial startup and                       determine that 70 of the 130 operators,
                                                    Additionally, operators can use the                   development costs for lessees and                      at a minimum, are using SEMS. We
                                                  data to make individual comparisons                     operators to develop and implement the                 suspect, however, that this number is
                                                  and evaluate trends. Knowing how the                    proposed four elements of a SEMS. This                 higher based on previous Annual
                                                  offshore industry as a whole is doing,                  is a one-time cost of approximately                    Performance Review Meetings where
                                                  and where their own company ranks,                      $4,590,000. The MMS estimates that                     voluntary SEMS was a discussion topic.
                                                  provides company management with                        annual recurring cost of the proposed                     • We have used actual costs from
                                                  information to focus on safety and                      rulemaking to be approximately                         safety management system vendors to
                                                  environmental improvement efforts.                      $8,083,967 for maintaining SEMS after                  derive our estimated costs for industry.
                                                  This information also provides offshore                 implementation. Details on the                            • We assume there are no new costs
                                                  operators with a credible data source to                estimated costs for this rulemaking are                for the estimated 70 operators who are
                                                  demonstrate how industry and                            further discussed in the Regulatory                    currently using SEMS, as their systems
                                                  individual operators are performing.                    Flexibility Act section. The proposed                  have already been developed and they
                                                    The MMS does not want the SEMS                        rulemaking would not adversely affect                  are expending funds to manage this
                                                  program to be a paperwork exercise                      in a material way the economy,                         process. However, we have calculated
                                                  conducted solely to meet regulatory                     productivity, competition, jobs, the                   costs associated with compliance that
                                                  requirements. Such an effort would                      environment, public health or safety, or               require new work on their behalf and
                                                  defeat the purpose of the proposed rule,                State, local, or tribal governments or                 continued maintenance/recordkeeping
                                                  which is to promote an attitude, or                     communities.                                           activities.
                                                  performance mentality, that helps to                       (2) This proposed rule would not                       • The estimated cost for the 60
                                                  achieve operational safety and                          create a serious inconsistency or                      remaining operators to implement,
                                                  environmental protection through                        otherwise interfere with an action taken               develop, and manage the SEMS program
                                                  awareness and planning. The MMS                         or planned by another agency.                          is based on the operator having an
                                                  knows that many lessee/operators have                      (3) This proposed rule would not alter              internet-based system, which has been
                                                  already integrated similar management                   the budgetary effects of entitlements,                 determined to be the most common
                                                  programs into their operations and                      grants, user fees, or loan programs or the             approach used by operators.
                                                  expects that most of the remaining                      rights or obligations of their recipients.                • Many operators are of such a
                                                  operators have some type of informal or                    (4) This proposed rule would not raise              modest size that a purchased template
                                                  undocumented management program                         novel legal or policy issues arising out               from a safety management system
                                                  that addresses safety and environmental                 of legal mandate, the President’s                      vendor would meet their needs and
                                                  policies and procedures. The MMS                        priorities, or the principles set forth in             would comply with the proposed
                                                  understands that the development and                    E.O. 12866.                                            regulation. They would not need to
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                                                  implementation of this type of program                                                                         spend additional money to customize a
                                                  may place an additional burden on                       Regulatory Flexibility Act
                                                                                                                                                                 template for their use.
                                                  some OCS operators, in the short-term.                     While the proposed rule would affect
                                                  However, MMS believes that a SEMS                       a substantial number of small entities, it             High, Moderate, and Low Activity
                                                  program would benefit all lessees/                      would not have a significant economic                  Definitions
                                                  operators in that it would identify and                 effect on a substantial number of small                  Oil and gas operators in the OCS vary
                                                  mitigate hazards, assure safe work                      entities under the Regulatory Flexibility              substantially in size and the degree in
                                                  practices, manage changes, and properly                 Act (5 U.S.C. 601 et seq.).                            which they are engaged in extracting oil


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                                                                                  Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                                                                          28645

                                                  from the OCS. Of the 130 identified                                            • An operator that qualifies under the                                        • Operate less than 100 in-service
                                                  operators, there is a range in OCS oil                                       high activity category would need to                                          components during the year.
                                                  and gas activity from as little as 1                                         meet the following criteria:
                                                  complex to nearly 500 facilities; and                                          • Produce at least 10 million or more                                       Development of SEMS Program
                                                  from as low as 15,000 barrels of oil                                         BOE (MMBOE) per year.                                                           After reviewing the voluntary SEMS
                                                  equivalent (BOE) annual production to                                          • Operate a minimum of 1,000 in-
                                                                                                                                                                                                             submittals (OCS Performance Measures
                                                  more than 300 million BOE annual                                             service components or more during the
                                                                                                                                                                                                             Data, Form MMS–131) received from
                                                  production. Because of this tremendous                                       year.
                                                                                                                                 • An operator that qualifies under the                                      1996–2006, an average of 70 operators
                                                  variation in activity, MMS divides
                                                  operators into high, moderate, and low                                       moderate activity category would need                                         (54 percent = 70/130) reported having a
                                                  activity for the purpose of measuring                                        to meet the following criteria:                                               SEMS-type program in-place. The other
                                                  their performance. Using these same                                            • Produce at least 1 MMBOE, but less                                        60 operators (46 percent = 60/130) may
                                                  criteria (following this paragraph), we                                      than 10 MMBOE, per year.                                                      not have a SEMS program in-place or
                                                  have used these size categories to                                             • Operate a minimum of 100 in-                                              may have a SEMS program but are not
                                                  estimate costs associated with                                               service components, but less than 1,000                                       participating in the voluntary SEMS
                                                  developing, managing, and fulfilling                                         in-service components during the year.                                        program.
                                                  reporting requirements for the proposed                                        • An operator that qualifies under the                                        The following table shows a
                                                  SEMS rule.                                                                   low activity category would need to                                           breakdown by operator activity category
                                                     The criteria that categorizes an                                          meet the following criteria:                                                  (high, moderate, low):
                                                  operator as a high, moderate, or low                                           • Produce less than 1 MMBOE per
                                                  activity is as follows:                                                      year.

                                                                                                                                                                                                Number of                       Number of            Total number
                                                                                                        Activity category                                                                    operators without                 operators with        of operators
                                                                                                                                                                                                  SEMS                            SEMS                by activity

                                                  High ..................................................................................................................................                             0                      13                 13
                                                  Moderate ..........................................................................................................................                                12                      29                 41
                                                  Low ..................................................................................................................................                             48                      28                 76

                                                         Total ..........................................................................................................................                            60                      70                130



                                                     As shown from the table, all high                                         additional $10,000. As mentioned in the                                       The total for all 60 operators to buy a
                                                  activity operators have a SEMS program                                       assumptions, many operators would not                                         template and then modify the template
                                                  in-place; the moderate activity shows                                        spend the additional $10,000 to                                               to their philosophy is estimated at
                                                  over 70 percent are currently                                                customize a SEMS program for their use                                        $750,000 ($150,000 + $600,000).
                                                  participating in a SEMS program; and                                         because it would not be necessary.
                                                  finally, the low activity shows almost 40                                      If the 60 operators without a SEMS                                          SEMS Implementation
                                                  percent are using a SEMS program.                                            program decided to buy a SEMS
                                                     Information received from consultants                                     template, the cost would be $150,000                                            This section provides the estimated
                                                  and vendors stated that the cost for an                                      ($2,500 × 60). If all 60 operators needed                                     cost for industry to implement a SEMS.
                                                  operator to buy a generic SEMS                                               to modify the generic plans for their                                         The following table shows a breakdown
                                                  template is approximately $2,500. If an                                      specific OCS operations, which would                                          of the average number of facilities and
                                                  operator decided to modify the generic                                       be unlikely, an additional cost of                                            components for the 3 operator activity
                                                  SEMS template to make it specific to                                         $600,000 ($10,000 × 60) would be                                              levels:
                                                  their use, the cost would be an                                              incurred to perform these modifications.

                                                                                                                                                                                                                                    Average no. of   Average no. of
                                                                                                                            Activity category                                                                                        components        complexes
                                                                                                                                                                                                                                    (per complex)

                                                  High ..........................................................................................................................................................................               21             139
                                                  Moderate ..................................................................................................................................................................                   15              29
                                                  Low ..........................................................................................................................................................................                16               6



                                                    The total cost for implementing the                                        integrity) was calculated for a moderate                                      operator to update a hazards analysis for
                                                  SEMS program considers only the 60                                           activity operator as follows:                                                 the 29 facilities would be approximately
                                                  operators that do not have a functional                                         • A hazards analysis for a moderate                                        $10,000 for 3 facilities (10 percent of 29
                                                  SEMS program. The other 70 operators                                         activity operator at the complex level                                        facilities).
                                                  are already managing their SEMS                                              (facility risk assessment) would cost                                           • The job hazard analysis at the task
                                                  program throughout the company.
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                                                                                                                               approximately $102,000 for 29 facilities.                                     level includes data collection, analysis,
                                                  Moderate Activity Category                                                   This is a one-time implementation cost.                                       and report development. This cost is
                                                                                                                               In following years, this cost would be                                        included in the hazards analysis.
                                                    A breakdown of the cost to implement                                       less because the rule requires that a                                           • The MOC cost is based on one
                                                  and manage a SEMS program consisting                                         hazards analysis be performed for                                             change request per month and it is
                                                  of the four elements (i.e., hazards                                          changes in the process or the equipment                                       dependent on the complexity of the
                                                  analysis, management of change,                                              on a facility. We estimate that the                                           change. The MOC cost will be
                                                  operating procedures, and mechanical                                         annual cost for a moderate activity                                           determined by the physical state of the


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                                                  28646                        Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                  facilities, the status of technology, and                           The estimated average cost for a                                   most operators, no formal evaluation is
                                                  the turnover of personnel. The MOC                               moderate activity operator to maintain                                necessary since changes will be
                                                  would cost approximately $20,000 per                             their SEMS program is $86,000 a year.                                 identified through the job hazard
                                                  year (includes the year to implement                             The estimated cost for the 12 moderate                                analysis process and managed through
                                                  SEMS) which also includes MOC data                               activity operators to initially maintain                              the MOC process. Operating procedures
                                                  collection, evaluation, and                                      their SEMS program is $1,032,000. The                                 will cost approximately $5,000 per year
                                                  documentation update.                                            itemized cost is:                                                     (includes the year to implement SEMS)
                                                     • Based on information from                                   •   Hazards analysis ......................                $10,000    which also includes data collection,
                                                  consultants and vendors, a lessee/                               •   Management of Change ...........                        20,000    evaluation, documentation update, and
                                                  operator would need to evaluate the                              •   Operating Procedures ..............                     18,000    recordkeeping.
                                                  operating procedures of their facility                           •   Mechanical Integrity ................                   20,000       • The mechanical integrity cost is
                                                  each year. Also, the operating procedure                         •   Audits .......................................           5,000    based on the assumption that
                                                  cost would be determined by the                                  •   Report development and meet-                                      mechanical integrity is achieved
                                                  maintenance of such procedures. For                                  ings ............................................       13,000
                                                                                                                                                                                         through preventive maintenance. The
                                                  most operators, no formal evaluation is                                 Total ......................................       $ 86,000    preventive maintenance program is
                                                  necessary since changes will be                                                                                                        defined prior to the commissioning of
                                                  identified through the job hazard                                  Once all moderate operators have a                                  the facility. The cost of maintenance is
                                                  analysis process and managed through                             SEMS program implemented, the                                         not included in this assessment, only
                                                  the MOC process. Operating procedures                            estimated cost to maintain their SEMS                                 the cost of managing the program.
                                                  will cost approximately $18,000 per                              program will be approximately                                         Mechanical integrity will cost
                                                  year (includes the year to implement                             $3,526,000 ($86,000 per operator × 41                                 approximately $8,000 per year (includes
                                                  SEMS) which also includes data                                   moderate activity operators =                                         the year to implement SEMS), which
                                                  collection, evaluation, documentation                            $3,526,000).                                                          also includes the quality assurance
                                                  update, and recordkeeping.                                       Low Activity Category                                                 inspection plan, evaluation of schedule
                                                     • The mechanical integrity cost is                                                                                                  appropriateness, communication of
                                                  based on the assumption that                                        A breakdown of the cost to implement
                                                                                                                                                                                         maintenance program, maintenance,
                                                  mechanical integrity is achieved                                 and manage a SEMS program consisting
                                                                                                                                                                                         salaries, inspection reports, and
                                                  through preventive maintenance. The                              of the four elements (i.e., hazards
                                                                                                                                                                                         recordkeeping.
                                                  preventive maintenance program is                                analysis, management of change,
                                                                                                                                                                                            • Auditing of the SEMS program is
                                                  defined prior to the commissioning of                            operating procedures, and mechanical
                                                                                                                                                                                         required once every 3 years and this
                                                  the facility. The cost of maintenance is                         integrity) was calculated for a low
                                                                                                                                                                                         cost would be approximately $6,000, for
                                                  not included in this assessment, only                            activity operator as follows:
                                                                                                                      • A hazards analysis for a low activity                            an average of $2,000 per year. This cost
                                                  the cost of managing the program.                                                                                                      includes developing audit protocols,
                                                                                                                   operator at the complex level (facility
                                                  Mechanical integrity will cost                                                                                                         planning, performing audits, and
                                                                                                                   risk assessment) would cost
                                                  approximately $20,000 per year                                                                                                         recordkeeping. This is an annual cost
                                                                                                                   approximately $22,000 for 6 facilities.
                                                  (includes the year to implement SEMS),                                                                                                 after implementation of SEMS.
                                                                                                                   This is a one-time implementation cost.
                                                  which includes the quality assurance                                                                                                      • The cost for report development,
                                                                                                                   In following years, this cost would be
                                                  inspection plan, evaluation of schedule                                                                                                meetings, recordkeeping, and data
                                                                                                                   less because the rule requires that a
                                                  appropriateness, communication of                                                                                                      collection and analysis would be
                                                                                                                   hazards analysis be performed for
                                                  maintenance program, salaries,                                                                                                         approximately $6,000 per year. This is
                                                                                                                   changes in a process or equipment on a
                                                  maintenance and inspection reports,                                                                                                    an annual cost after implementation of
                                                                                                                   facility. We estimate that the annual
                                                  and recordkeeping.                                                                                                                     SEMS.
                                                     • Auditing of the SEMS program is                             cost for a low activity operator to update
                                                                                                                   a hazards analysis would be                                              The estimated cost for a low activity
                                                  required once every 3 years and this                                                                                                   operator to implement SEMS is $40,000.
                                                  cost would be approximately $15,000,                             approximately $2,000 for 1 facility.
                                                                                                                      • The job hazard analysis at the task                              The cost for the 48 low activity
                                                  for an average of $5,000 per year. This                                                                                                operators to implement SEMS is
                                                  cost includes developing audit                                   level includes data collection, analysis,
                                                                                                                   report development, and recordkeeping.                                $1,920,000 ($40,000 × 48 operators). The
                                                  protocols, planning, performing audits,                                                                                                itemized cost is:
                                                  and recordkeeping. This is an annual                             This cost is already included in the
                                                                                                                   hazards analysis.                                                     •   Hazards analysis ......................            $ 22,000
                                                  cost after implementation of SEMS.                                                                                                     •   Management of Change ...........                      5,000
                                                     • The cost for report development,                               • The MOC cost is based on one
                                                                                                                   change request per month and it is                                    •   Operating Procedures ..............                   5,000
                                                  meetings, data collection,                                                                                                             •   Mechanical Integrity ................                 8,000
                                                  recordkeeping, and analysis would be                             dependent on the complexity of the
                                                  approximately $13,000 per year. This is                          change. The MOC cost would be                                                Total ......................................    $40,000
                                                  an annual cost after implementation of                           determined by the physical state of the
                                                                                                                   facilities, the status of technology, and                                The estimated cost for a low activity
                                                  SEMS.                                                                                                                                  operator to maintain their SEMS
                                                     The estimated cost for a moderate                             the turnover of personnel. The MOC
                                                                                                                   would cost approximately $5,000 per                                   program is $28,000 a year. The cost for
                                                  activity operator to implement SEMS is                                                                                                 the 48 low activity operators to maintain
                                                  $160,000. The estimated cost for the 12                          year (includes the year to implement
                                                                                                                   SEMS) which also includes MOC data                                    SEMS is $1,344,000. The itemized cost
                                                  moderate activity operators to                                                                                                         is:
                                                  implement SEMS is $1,920,000                                     collection, evaluation, documentation
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                                                                                                                   update, and recordkeeping.                                            •   Hazards analysis ......................             $ 2,000
                                                  ($160,000 × 12 operators). The itemized                                                                                                •   Management of Change ...........                      5,000
                                                  cost is:                                                            • Based on information from
                                                                                                                   consultants and vendors, a lessee/                                    •   Operating Procedures ..............                   5,000
                                                  •   Hazards analysis ......................          $102,000                                                                          •   Mechanical Integrity ................                 8,000
                                                                                                                   operator would need to evaluate the
                                                  •   Management of Change ...........                   20,000                                                                          •   Audits .......................................        2,000
                                                  •   Operating Procedures ..............                18,000    operating procedures of their facility                                •   Report development and meet-
                                                  •   Mechanical Integrity ................              20,000    each year. Also the operating procedure                                   ings ...........................................     6,000
                                                                                                                   cost would be determined by the
                                                        Total ......................................   $160,000    maintenance of such procedures. For                                          Total ......................................    $ 28,000



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                                                                        Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                                28647

                                                    Once all low operators have a SEMS                    estimated cost is greater than the low                     repair costs, damage claims, and
                                                  program implemented, the cost to                        and moderate activity operators because                    increased insurance premiums are a few
                                                  maintain their SEMS program will be                     of the increased complexity of their                       of the potential economic consequences
                                                  approximately $2,128,000 ($28,000 per                   operations. We did not discuss this cost                   of an accidental mishap.
                                                  operator × 76 low activity operators =                  in detail because all the high activity                       • Establishing a marketable safety
                                                  $2,128,000).                                            operators already have a SEMS program                      record—A record of consistently safe
                                                                                                          in place. A summary of all the costs are                   operations can be used to attract new
                                                  Cost to Submit to MMS                                                                                              business and investment.
                                                                                                          shown below.
                                                     The following are the estimated costs                Buy/develop and imple-                                        • Continuous improvement of
                                                  for complying with the proposed                           ment SEMS Plan for oper-                                 operational processes—SEMS allows for
                                                  submittals to MMS and associated                          ators without a SEMS Im-                                 lessons learned to be incorporated into
                                                  recordkeeping. The burden hours, that                     plementation cost .............            $ 750,000     the system and lead to superior
                                                  these costs are based on, are addressed                 • High activity operator                                   operations.
                                                  in the Paperwork Reduction Act section.                   cost (already imple-                                        • Improved employee morale and
                                                     • A letter notifying the Regional                      mented) .............................            $ -0-   productivity—Promoting
                                                  Supervisory Field Office (RSFO) when                    Moderate activity operator                                 communication between management
                                                  an operator plans on conducting an                        cost ($160,000 × 12) .........             1,920,000     and the rest of the organization prevents
                                                                                                          • Low activity operator cost                               disenfranchisement and lifts morale.
                                                  audit of their SEMS program in order for                  ($40,000 × 48) ...................         1,920,000
                                                  MMS to participate as observers would                                                                                 The financial burden estimated for
                                                  cost approximately $3,827 each year                          Total first year cost ......           $4,590,000     developing and managing a SEMS
                                                  (see proposed § 250.1910). This cost is                 Maintain SEMS (Annual                                      program is minor compared to the costs
                                                  based on one-third of all 130 operators                   Cost after Implementa-                                   associated with major accidents. For
                                                  sending a notification letter each year,                  tion).                                                   example, in 1987 prior to industry
                                                  with an estimated burden time of 1                      • High activity operator                                   having developed a safety management
                                                  hour.                                                     cost ($178,000 × 13) .........            $2,314,000     template for offshore operations, the
                                                     • A report must be sent to the RSFO                  • Moderate activity oper-                                  Mississippi Canyon 311, A (Bourbon),
                                                                                                            ator cost ($86,000 × 41) ...               3,526,000     platform in the Gulf of Mexico was
                                                  within 30 days of the audit completion                  • Low activity operator cost
                                                  date, once every 3 years. The report                                                                               tilted to one side by an extensive
                                                                                                            ($28,000 × 76) ...................         2,128,000
                                                  must outline the results of the audit                   Submittals required by
                                                                                                                                                                     underground blowout. The cost
                                                  including deficiencies identified, a                      MMS (annual cost) ...........                115,967     associated with this incident alone was
                                                  time-table or schedule for implementing                                                                            $274,000,000. In 1989, a fire associated
                                                  corrections to deficiencies, and the                          Total annual costs after                             with a pipeline repair killed 7 people
                                                  person responsible for correcting each                          implementation .........            $8,083,967     and destroyed a major production
                                                  identified deficiency including their job                                                                          facility. A SEMS plan would have
                                                                                                          Benefits of SEMS
                                                  title (see proposed § 250.1910). The                                                                               implemented several procedures and
                                                  annual cost would be approximately                         The ultimate goal of SEMS is to                         evaluations that may have prevented
                                                  $15,308. This cost is based on one-third                promote safety and environmental                           these accidents. A SEMS plan is not a
                                                  of the all 130 operators submitting a                   protection in the OCS during all                           guarantee of avoiding all accidents but
                                                  report each year.                                       offshore activities. Moreover, increasing                  MMS believes that a mandatory SEMS
                                                     • On an annual basis, Form MMS–                      a system’s level of safety leads to                        program (4 elements) will reduce the
                                                  131 (Performance Measures Data) must                    reduced material losses and enhanced                       likelihood of the types of accidents and
                                                  be submitted to MMS which would cost                    productivity. This supports the concept                    incidents discussed here and in the
                                                  approximately $92,560. This cost is                     that safety is good for business.                          Preamble and will also serve to raise the
                                                  based on all 130 operators with an                         Some further benefits include:                          safety awareness of all personnel in the
                                                  estimated time of 8 hours per response.                    • Logical prioritization of safety                      office and field.
                                                     • The MMS would conduct                              needs—SEMS emphasizes risk                                    The proposed requirement for SEMS
                                                  evaluations of SEMS programs. We                        mitigation actions that provide the                        would not have a significant economic
                                                  would require you to demonstrate and                    biggest impact on safety.                                  effect on a substantial number of small
                                                  explain the procedures and policies in                     • More efficient maintenance                            entities. The MMS estimates that over
                                                  your program and produce evidence, if                   scheduling and resource utilization—                       40 percent of the small entities currently
                                                  needed, to support your explanation                     Effective hazard reporting in SEMS                         operating on the OCS have already
                                                  which would cost approximately $4,272                   allows proactive scheduling of                             implemented a SEMS program that
                                                  a year (see proposed § 250.1913). This                  maintenance tasks when resources are                       meets the requirements under these
                                                  cost is based on conducting six                         available, increasing the likelihood that                  proposed regulations. These small
                                                  evaluations a year.                                     maintenance is performed on time and                       entities (28 low activity and 10 medium
                                                     The total cost for required paperwork                more efficiently.                                          activity operators) implemented SEMS
                                                  being submitted to MMS would be                            • Compliance with legal                                 because it improved the efficiency and
                                                  approximately $115,967.                                 responsibilities for safety—MMS                            safety of their OCS operations. The cost
                                                                                                          certification requirements mandate a                       for the remaining 60 percent of small
                                                  Summary of Annual Costs to Implement                    number of safety processes and                             entities to implement (approximately
                                                  and Maintain SEMS                                       standards that can be included in an                       $52,500) and maintain (approximately
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                                                    The total cost to implement and                       organization’s SEMS.                                       $28,000) SEMS is very small compared
                                                  maintain SEMS is approximately                             • Avoiding incident investigation                       to the average annual revenues they
                                                  $12,673,967. This total includes an                     costs and operational disruptions—                         would generate ($28,000,000) from the
                                                  estimated $2,314,000 for high activity                  Improved communication and risk                            production of oil and gas. The MMS
                                                  operators (13) to maintain their SEMS                   mitigation will prevent many accidents                     estimated the annual revenue by
                                                  program. We estimated the cost to                       from occurring.                                            multiplying the average production for
                                                  maintain SEMS for the high activity                        • Reduction of the direct and indirect                  a small entity (700,000 BOE) times a
                                                  operator to be $178,000 per year. This                  costs of accidents—Civil penalties,                        conservative price for a barrel of oil


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                                                  28648                 Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                  ($40). Therefore, this proposed                         implications. This proposed rule would                 concerning the collection of information
                                                  rulemaking would not have a significant                 not substantially and directly affect the              contained in these proposed regulations
                                                  economic effect on a substantial number                 relationship between the Federal and                   between 30 to 60 days after publication
                                                  of small entities.                                      State governments. To the extent that                  of this document in the Federal
                                                    Your comments are important. The                      State and local governments have a role                Register. Therefore, a comment to OMB
                                                  Small Business and Agriculture                          in OCS activities, this proposed rule                  is best assured of having its full effect
                                                  Regulatory Enforcement Ombudsman                        would not affect that role. A Federalism               if OMB receives it by July 17, 2009. This
                                                  and 10 Regional Fairness Boards were                    Assessment is not required.                            does not affect the deadline for the
                                                  established to receive comments from                                                                           public to comment to MMS on the
                                                                                                          Civil Justice Reform (E.O. 12988)                      proposed regulations.
                                                  small businesses about Federal agency
                                                  enforcement actions. The Ombudsman                         This rule complies with the                            The title of the collection of
                                                  will annually evaluate the enforcement                  requirements of E.O. 12988.                            information for the rule is 30 CFR Part
                                                  activities and rate each agency’s                       Specifically, this rule:                               250, Subpart S, Safety and
                                                  responsiveness to small business. If you                   (a) Meets the criteria of section 3(a)              Environmental Management Systems for
                                                  wish to comment on the actions of                       requiring that all regulations be                      Outer Continental Shelf Oil and Gas
                                                  MMS, call 1–888–734–3247. You may                       reviewed to eliminate errors and                       Operations. Respondents are
                                                  comment to the Small Business                           ambiguity and be written to minimize                   approximately 130 Federal OCS lessees,
                                                  Administration without fear of                          litigation; and                                        operators, and/or other independent
                                                  retaliation. Allegations of                                (b) Meets the criteria of section 3(b)(2)           third-parties. The MMS will use the
                                                  discrimination/retaliation filed with the               requiring that all regulations be written              information to: Evaluate the effect of
                                                  SBA will be investigated for appropriate                in clear language and contain clear legal              industry’s continued improvement of
                                                  action.                                                 standards.                                             safety and environmental management
                                                                                                          Consultation With Indian Tribes (E.O.                  of the OCS; develop an industry average
                                                  Small Business Regulatory Enforcement                                                                          that helps to describe how well the
                                                  Fairness Act                                            13175)
                                                                                                                                                                 offshore oil and gas industry is
                                                     The proposed rule is not a major rule                   Under the criteria in E.O. 13175, we                performing; and judge the
                                                  under 5 U.S.C. 804(2) of the Small                      have evaluated this proposed rule and                  reasonableness of company requests for
                                                  Business Regulatory Enforcement                         determined that it has no substantial                  any specific regulatory relief. Responses
                                                  Fairness Act. This proposed rule:                       effects on federally recognized Indian                 to this collection are mandatory. The
                                                     a. Would not have an annual effect on                tribes. There are no Indian or tribal                  frequency of response varies, but is
                                                  the economy of $100 million or more.                    lands in the OCS.                                      primarily annual. The information
                                                     b. Would not cause a major increase                  Paperwork Reduction Act (PRA)                          collection (IC) does not include
                                                  in costs or prices for consumers,                                                                              questions of a sensitive nature. The
                                                  individual industries, Federal, State, or                 This proposed rule contains a                        MMS will protect proprietary
                                                  local government agencies, or                           collection of information that has been                information according to the Freedom of
                                                  geographic regions.                                     submitted to the Office of Management                  Information Act (5 U.S.C. 522) and its
                                                     c. Would not have significant adverse                and Budget (OMB) for review and                        implementing regulations (43 CFR Part
                                                  effects on competition, employment,                     approval under 44 U.S.C. 3507(d). As                   2), and 30 CFR 250.197, Data and
                                                  investment, productivity, innovation, or                part of our continuing effort to reduce                information to be made available to the
                                                  the ability of U.S.-based enterprises to                paperwork and respondent burdens,                      public or for limited inspection, and 30
                                                  compete with foreign-based enterprises.                 MMS invites the public and other                       CFR Part 252, OCS Oil and Gas
                                                                                                          Federal agencies to comment on any                     Information Program.
                                                  Unfunded Mandates Reform Act of                         aspect of the reporting and                               During 1997, MMS, the U.S. Coast
                                                  1995                                                    recordkeeping burden. If you wish to                   Guard, and representatives of the OCS
                                                     This proposed rule would not impose                  comment on the information collection                  oil and gas industry worked together to
                                                  an unfunded mandate on State, local, or                 aspects of this proposed rule, you may                 develop a suite of consensus formulas
                                                  tribal governments or the private sector                send your comments directly to OMB                     for gauging the industry’s safety and
                                                  of more than $100 million per year. The                 (see the ADDRESSES section of this                     environmental performance. This
                                                  proposed rule would not have a                          notice). Please identify your comments                 resulted in the initiation of OMB
                                                  significant or unique effect on State,                  with 1010–AD15. Send a copy of your                    approved Form MMS–131, Performance
                                                  local, or tribal governments or the                     comments to the Regulations and                        Measures Data. With this new subpart,
                                                  private sector. A statement containing                  Standards Branch (RSB), Attn:                          MMS will continue to use the
                                                  the information required by the                         Comments; 381 Elden Street, MS–4024;                   information collected on Form MMS–
                                                  Unfunded Mandates Reform Act (2                         Herndon, Virginia 20170–4817. Please                   131 to calculate annually, OCS-wide,
                                                  U.S.C. 1501 et seq.) is not required.                   reference 30 CFR Part 250, Subpart S,                  performance indices based on those
                                                                                                          Safety and Environmental Management                    consensus formulas to provide the
                                                  Takings Implication Assessment (E.O.                    Systems for Outer Continental Shelf Oil                public with information about
                                                  12630)                                                  and Gas Operations, 1010–AD15 in                       performance trends, and allow OCS
                                                     Under the criteria in E.O. 12630, this               your comments. You may obtain a copy                   lease operators to compare their
                                                  proposed rule does not have significant                 of the supporting statement for the new                performance with industry averages.
                                                  takings implications. The proposed rule                 collection of information by contacting                The results will be posted by MMS for
dwashington3 on PROD1PC60 with PROPOSALS-1




                                                  is not a governmental action capable of                 the Bureau’s Information Collection                    use by the public.
                                                  interference with constitutionally                      Clearance Officer at (202) 208–7744.                      This rule and IC request also include
                                                  protected property rights. A Takings                      The PRA provides that an agency may                  the hours and requirements already
                                                  Implication Assessment is not required.                 not conduct or sponsor, and a person is                approved for Form MMS–131 in OMB
                                                                                                          not required to respond to, a collection               Control Number 1010–0112, (280 hours,
                                                  Federalism (E.O. 13132)                                 of information unless it displays a                    expiration 3/31/11). This collection is
                                                    Under the criteria in E.O. 13132, this                currently valid OMB control number.                    voluntary, but the rulemaking will make
                                                  proposed rule does not have federalism                  The OMB is required to make a decision                 this and the new requirements


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                                                                                Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                                                                             28649

                                                  mandatory. The current collection                                        when the final regulations become                                            The following table details the IC
                                                  under 1010–0112 will be discontinued                                     effective.                                                                 burden for the proposed new
                                                                                                                                                                                                      requirements in subpart S.

                                                                                                                                                                                                                Average number of                      Annual burden
                                                    Citation 30 CFR 250 subpart S                         Reporting and recordkeeping requirement                                 Hour burden                   annual responses                          hours

                                                                                                                                                                                                             Non-hour cost burdens

                                                  1900 ............................................    Develop and implement a SEMS program.                                         $2,500 per implementation × 60 operators = $150,000.
                                                                                                        (One time implementation cost of SEMS
                                                                                                        template).

                                                  1900 ............................................    In-house modification (one time implementa-                                  $10,000 per implementation × 60 operators = $600,000.
                                                                                                         tion cost) of the generic SEMS program to
                                                                                                         meet needs of specific company.

                                                  1900–1915 ..................................         High Activity Operator: Maintain all records                                           2,000       13 ......................................           26,000
                                                                                                         pertaining to your SEMS program (e.g., op-
                                                                                                         erating procedures, MOC, mechanical in-
                                                                                                         tegrity, 3rd party and qualified personnel
                                                                                                         info, any supporting documentation, etc.),
                                                                                                         and retain for 5 years; hazards analysis
                                                                                                         records retain for the life of the operation;
                                                                                                         upon request, make available to MMS.
                                                  1900–1915 ..................................         Moderate Activity Operator: Maintain all                                                  966      41 ......................................           39,606
                                                                                                         records pertaining to your SEMS program
                                                                                                         (e.g., operating procedures, MOC, mechan-
                                                                                                         ical integrity, 3rd party and qualified per-
                                                                                                         sonnel info, any supporting documentation,
                                                                                                         etc.), and retain for 5 years; hazards anal-
                                                                                                         ysis records retain for the life of the oper-
                                                                                                         ation; upon request, make available to
                                                                                                         MMS.

                                                                                                       Moderate Activity Operator Implementation.                                      $160,000 per moderate activity implementation × 12
                                                                                                        (One time cost to implement SEMS).                                                          operators = $1,920,000.

                                                  1900–1915 ..................................         Low Activity Operator: Maintain all records                                               315      76 ......................................           23,940
                                                                                                         pertaining to your SEMS program (e.g., op-
                                                                                                         erating procedures, MOC, mechanical in-
                                                                                                         tegrity, 3rd party and qualified personnel
                                                                                                         info, any supporting documentation, etc),
                                                                                                         and retain for 5 years; hazards analysis
                                                                                                         records retain for the life of the operation;
                                                                                                         upon request, make available to MMS.

                                                                                                       Low Activity Operator Implementation. (One                                  $40,000 per low activity implementation × 48 operators =
                                                                                                         time cost to implement SEMS).                                                                    $1,920,000.

                                                  1910 ............................................    Notify RSFO with audit schedule in timely                                                     1    130 operators/once every                      43 (rounded)
                                                                                                         manner.                                                                                            3 years = 43 responses.
                                                  1910 ............................................    Submit audit report, once in every 3 years,                                                   4    130 operators/once every                              172
                                                                                                         within 30 days of audit including required                                                         3 years = 43 responses.
                                                                                                         information; retain records for 5 years;
                                                                                                         upon request, make available to MMS.
                                                  1913 ............................................    Demonstrate and explain, as required, the                                                     8    6 ........................................             48
                                                                                                         policies and procedures included in your
                                                                                                         SEMS program; produce supporting docu-
                                                                                                         mentation if required.
                                                  1915 ............................................    Submit Form MMS–131 ..................................                                        8    130 ....................................             1,040

                                                        Total burden ..................................................................................................................................   472 Responses ................                90,849 Hours

                                                                                                                                                                                                                $4,590,000 Non-Hour Cost Burdens
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                                                  28650                 Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                     The MMS specifically solicits                        National Environmental Policy Act of                       rule, your comments should be as
                                                  comments on the following questions:                    1969                                                       specific as possible. For example, you
                                                     (a) Is the proposed collection of                      This rule does not constitute a major                    should tell us the numbers of the
                                                  information necessary for MMS to                        Federal action significantly affecting the                 sections or paragraphs that you find
                                                  properly perform its functions, and will                quality of the human environment. A                        unclear, which sections or sentences are
                                                  it be useful?                                           detailed statement under the National                      too long, the sections where you feel
                                                     (b) Are the estimates of the burden                  Environmental Policy Act of 1969 is not                    lists or tables would be useful, etc.
                                                  hours of the proposed collection                        required because the rule is covered by                    Public Availability of Comments
                                                  reasonable?                                             a categorical exclusion. This rule is
                                                                                                          excluded from the requirement to                             Before including your address, phone
                                                     (c) Do you have any suggestions that
                                                                                                          prepare a detailed statement because it                    number, e-mail address, or other
                                                  would enhance the quality, clarity, or
                                                                                                          qualifies as a regulation of an                            personal identifying information in your
                                                  usefulness of the information to be
                                                                                                          administrative and procedural nature, in                   comment, you should be aware that
                                                  collected?
                                                                                                          that the proposed rule only requires that                  your entire comment—including your
                                                     (d) Is there a way to minimize the                                                                              personal identifying information—may
                                                  information collection burden on those                  industry develop a SEMS program. (For
                                                                                                          further information see 43 CFR                             be made publicly available at any time.
                                                  who are to respond, including the use                                                                              While you can ask us in your comment
                                                  of appropriate automated electronic,                    46.210(i)). We have also determined that
                                                                                                          the rule does not involve any of the                       to withhold your personal identifying
                                                  mechanical, or other forms of                                                                                      information from public review, we
                                                  information technology?                                 extraordinary circumstances listed in 43
                                                                                                          CFR 46.215 that would require further                      cannot guarantee that we will be able to
                                                     In addition, the PRA requires agencies                                                                          do so.
                                                  to estimate the total annual reporting                  analysis under the National
                                                  and recordkeeping non-hour cost                         Environmental Policy Act.                                  List of Subjects in 30 CFR 250
                                                  burden resulting from the collection of                 Data Quality Act                                             Administrative practice and
                                                  information. Other than the four non-                     In developing this rule we did not                       procedure, Continental shelf,
                                                  hour cost burdens for developing the                    conduct or use a study, experiment, or                     Environmental protection, Incorporation
                                                  program that are listed in the burden                   survey requiring peer review under the                     by reference, Public Lands—mineral
                                                  table, we have not identified any other                 Data Quality Act (Pub. L. 106–554, app.                    resources, Reporting and recordkeeping
                                                  costs, and we solicit your comments on                  C § 515, 114 Stat. 2763, 2763A–153–                        requirements.
                                                  this item. For reporting and                            154).                                                        Dated: June 4, 2009.
                                                  recordkeeping only, your response
                                                                                                          Effects on the Energy Supply (E.O.                         Assistant Secretary—Land and Minerals
                                                  should split the cost estimate into two
                                                                                                                                                                     Management.
                                                  components: (a) Total capital and                       13211)
                                                  startup cost component, and (b) annual                    This rule is not a significant energy                      For the reasons stated in the
                                                  operation, maintenance, and purchase                    action under the definition in E.O.                        preamble, Minerals Management
                                                  of services component. Your estimates                   13211. A Statement of Energy Effects is                    Service (MMS) proposes to amend 30
                                                  should consider the costs to generate,                  not required.                                              CFR part 250 as follows:
                                                  maintain, and disclose or provide the
                                                  information. You should describe the                    Clarity of This Regulation                                 PART 250—OIL AND GAS AND
                                                  methods you use to estimate major cost                     We are required by E.O. 12866, E.O.                     SULPHUR OPERATIONS IN THE
                                                  factors, including system and                           12988, and by the Presidential                             OUTER CONTINENTAL SHELF
                                                  technology acquisition, expected useful                 Memorandum of June 1, 1998, to write                         1. The authority citation for 30 CFR
                                                  life of capital equipment, discount                     all rules in plain language. This means                    part 250 continues to read as follows:
                                                  rate(s), and the period over which you                  that each rule we publish must:
                                                  incur costs. Generally, your estimates                     (a) Be logically organized;                                 Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.
                                                  should not include equipment or                            (b) Use the active voice to address                       2. In § 250.197, redesignate, in the
                                                  services purchased:                                     readers directly;                                          table, paragraphs (a)(7) through (10) as
                                                     (1) Before October 1, 1995;                             (c) Use clear language rather than                      paragraphs (a)(8) through (11), and add
                                                                                                          jargon;                                                    new paragraph (a)(7) to the table for
                                                     (2) To comply with requirements not                     (d) Be divided into short sections and
                                                  associated with the information                                                                                    Form MMS–131, Performance Measures
                                                                                                          sentences; and                                             Data, to read as follows:
                                                  collection;                                                (e) Use lists and tables wherever
                                                     (3) For reasons other than to provide                possible.                                                  § 250.197 Data and information to be made
                                                  information or keep records for the                        If you feel that we have not met these                  available to the public or for limited
                                                  Government; or                                          requirements, send us comments by one                      inspection.
                                                     (4) As part of customary and usual                   of the methods listed in the ADDRESSES                     *       *    *       *     *
                                                  business or private practices.                          section. To better help us revise the                          (a) * * *

                                                                                                            Data and information not immediately avail-
                                                                    On form * * *                                                                                        Excepted data will be made available * * *
                                                                                                                          able are * * *
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                                                          *                 *                              *                    *                *                                   *                  *
                                                  (7) MMS–131, Performance Measures Data ....             Company Name(s); Operator Code(s); Contact                 Aggregate data collected yearly will be pub-
                                                                                                            Name; E-mail Address; Telephone (Num-                      lished one month after submission deadline;
                                                                                                            ber); Fax (Number).                                        no individual company’s data will be made
                                                                                                                                                                       available to the public.

                                                            *                       *                       *                          *                       *                      *                   *




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                                                                        Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                                         28651

                                                  *     *    *   *    *                                   paragraph (e) in alphanumerical order to                      § 250.198 Documents incorporated by
                                                                                                          read as follows:                                              reference.
                                                    3. Amend § 250.198 by adding the
                                                  following document to the table in                                                                                    *       *    *       *      *
                                                                                                                                                                            (e) * * *

                                                                                Title of documents                                                                   Incorporated by reference at


                                                          *                  *                    *                    *                                         *                       *                  *
                                                  API RP 75 Development of a Safety and Environmental Management 250.1903.
                                                   Program, for Offshore Operations and Facilities, Third Edition, May
                                                   2004, Product No. G07503.

                                                            *                       *                         *                          *                       *                       *                  *



                                                    4. Revise § 250.199(e)(17) to read as                 § 250.199 Paperwork Reduction Act                                 (e) * * *
                                                  follows:                                                statements-information collection.
                                                                                                          *        *      *       *          *

                                                      30 CFR subpart, title and/or MMS Form (OMB Control Number)                                          Reasons for collecting information and how used


                                                           *                    *                *                  *                   *                    *                    *
                                                  (17) Subpart S, Safety and Environmental Management Systems The information collected is to gather the raw Performance Measures
                                                    (1010-xxxx), including Form MMS–131, Performance Measures Data.   Data relating to risk and number of accidents, injuries, and oil spills
                                                                                                                      during OCS activities. We use the information obtained from this
                                                                                                                      form to develop an industry average that helps to describe how well
                                                                                                                      the offshore oil and gas industry is performing in a safe manner.

                                                            *                       *                         *                          *                       *                       *                  *



                                                    5. Add new subpart S to read as                       § 250.1915 What are my responsibilities for                   § 250.1903 May I use an industry standard
                                                  follows:                                                    submitting OCS performance measure                        to develop my SEMS program?
                                                                                                              data?                                                        Your SEMS program must meet the
                                                  Subpart S—Safety and Environmental                                                                                    minimum criteria outlined in this
                                                  Management Systems (SEMS)                               § 250.1900      Must I have a SEMS program?
                                                                                                                                                                        subpart and should be modeled after the
                                                  Sec.                                                      You must develop, implement, and                            requirements in:
                                                  § 250.1900 Must I have a SEMS program?                  maintain a SEMS program. Your SEMS                               (a) API RP 75, Development of a
                                                  § 250.1901 What is the goal of my SEMS                  program must address the following                            Safety and Environmental Management
                                                       program?                                           four elements:                                                Program, for Offshore Operations and
                                                  § 250.1902 When must I comply with the                    (a) Hazards Analysis (including job                         Facilities, Third Edition, May 2004
                                                       regulations in this subpart?                                                                                     (incorporated by reference as specified
                                                  § 250.1903 May I use an industry standard
                                                                                                          hazard analysis), (b) Operating
                                                                                                          Procedures, (c) Management of Change,                         in § 250.198).
                                                       to develop my SEMS program?
                                                  § 250.1904 What are my general                          and (d) Mechanical Integrity.                                    (b) Other standards or guidelines (e.g.,
                                                       responsibilities for SEMS?                                                                                       ISO 9001, 14001) that meet or exceed
                                                  § 250.1905 What criteria for Hazards                    § 250.1901      What is the goal of my SEMS                   the API RP 75 standard.
                                                       Analyses must my SEMS program meet?                program?
                                                                                                                                                                        § 250.1904 What are my general
                                                  § 250.1906 What criteria for Operating                    (a) The goal of your SEMS program                           responsibilities for SEMS?
                                                       Procedures must my SEMS program
                                                                                                          must be to promote safety and                                   (a) You are responsible for the
                                                       meet?
                                                  § 250.1907 What criteria for Mechanical                 environmental protection in the OCS                           development, support, and continued
                                                       Integrity must my SEMS program meet?               during all offshore activities.                               improvement of your SEMS program.
                                                  § 250.1908 What criteria for Management of                (b) To accomplish this goal, you must                         (b) You must provide resources to
                                                       Change must my SEMS program meet?                  ensure that your SEMS program                                 implement and maintain your SEMS
                                                  § 250.1909 What criteria must be                        identifies, addresses, and manages                            program.
                                                       documented in my SEMS program for
                                                       contractor selection?
                                                                                                          safety and environmental hazards and                            (c) You must appoint a management
                                                  § 250.1910 What are my responsibilities                 impacts during the design, construction,                      official to serve as the operator’s
                                                       when conducting a SEMS audit?                      startup, operation, inspection, and                           Management System Coordinator who
                                                  § 250.1911 What are my documentation and                maintenance of new and existing OCS                           will be responsible for the following:
                                                                                                          facilities and DOI regulated pipelines.
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                                                       recordkeeping requirements?                                                                                        (1) Establishing, implementing, and
                                                  § 250.1912 What qualifications must an                                                                                maintaining SEMS program procedures,
                                                       independent third party or my                      § 250.1902 When must I comply with the
                                                                                                                                                                        (2) Reporting to your management
                                                       designated and qualified personnel                 regulations in this subpart?
                                                                                                                                                                        annually on the performance of the
                                                       meet?
                                                  § 250.1913 How will MMS determine if my
                                                                                                            You must comply with the provisions                         SEMS program and the need for
                                                       SEMS program is effective?                         of this subpart on or before [THE DATE                        improvement, and
                                                  § 250.1914 What happens if MMS finds                    1 YEAR AFTER THE EFFECTIVE DATE                                 (3) Reinforcing awareness of safety
                                                       shortcomings in my SEMS program?                   OF THE FINAL RULE].                                           and environmental protection


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                                                  28652                 Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                  requirements throughout the                             experience in the operations being                     they reflect any changes made to your
                                                  organization.                                           evaluated. These individuals also need                 operations.
                                                                                                          to be experienced in the hazards                         (d) You must develop and implement
                                                  § 250.1905 What criteria for Hazards                    analysis methodologies being employed.
                                                  Analyses must my SEMS program meet?
                                                                                                                                                                 safe and environmentally sound work
                                                                                                            (3) You should assure that the                       practices for identified hazards during
                                                     You must develop and implement a                     recommendations in the hazards                         operations.
                                                  hazards analysis (facility level) and a job             analysis are resolved and that the
                                                  hazard analysis (operations/task level)                 resolution is documented.                              § 250.1907 What criteria for Mechanical
                                                  for all of your facilities. For this subpart,             (b) Job Hazard Analysis (operations/                 Integrity must my SEMS program meet?
                                                  facilities include all types of offshore                task level). Job hazard analysis                         You must develop and implement
                                                  structures permanently or temporarily                   (operations/task level) must be                        written procedures that provide
                                                  attached to the seabed (i.e., mobile                    conducted for each work project and                    instructions to ensure the mechanical
                                                  offshore drilling units; floating                       activity.                                              integrity and safe operation of
                                                  production systems; floating                              (1) You must keep a copy of the most                 equipment through inspection, testing,
                                                  production, storage and offloading                      recent job hazard analysis at the job site,            and quality assurance. The purpose of
                                                  facilities; tension-leg platforms; and                  and they must be readily accessible to                 mechanical integrity is to ensure that
                                                  spars) used for exploration,                            employees.                                             equipment is fit-for-service. Your
                                                  development, production, and                              (2) You must complete and maintain                   mechanical integrity program must
                                                  transportation activities for oil, gas, or              an index naming the task, the date the                 encompass all equipment and systems
                                                  sulphur from areas leased in the OCS.                   job hazard analysis was completed, and                 used to prevent or mitigate uncontrolled
                                                  Facilities also include DOI regulated                   the date the analysis was revised.                     releases of hydrocarbons, toxic
                                                  pipelines. The purpose of both the                                                                             substances, or other materials that may
                                                  facility level and operations/task level                § 250.1906 What criteria for Operating                 cause environmental or safety
                                                  hazards analyses is to identify accident                Procedures must my SEMS program meet?
                                                                                                                                                                 consequences. These procedures must
                                                  scenarios which could lead to worker                       (a) You must develop and implement                  address the following:
                                                  injuries, fatalities, property damage,                  written operating procedures that                        (a) The design, procurement,
                                                  discharges and emissions, coastal and                   provide instructions for conducting safe               fabrication, installation, calibration, and
                                                  marine environmental impacts, or other                  and environmentally sound activities                   maintenance of your equipment and
                                                  adverse consequences. You must                          involved in each operation addressed in                systems in accordance with the
                                                  document and maintain current                           your SEMS program. These procedures                    manufacturer’s design and material
                                                  analyses for each operation covered by                  must address the following:                            specifications.
                                                  this section for the life of the operation                 (1) Initial startup;                                  (b) The training of each employee
                                                  at the facility. The analyses must be                      (2) Normal operations;                              involved in maintaining your
                                                  updated when an internal audit is                          (3) Temporary operations;
                                                                                                                                                                 equipment and systems so that your
                                                  conducted to assure that it is consistent                  (4) Emergency operations;
                                                                                                                                                                 employees can implement your
                                                  with the current operations on your                        (5) Normal shutdown;
                                                                                                             (6) Startup following a turnaround, or              mechanical integrity program.
                                                  facility.                                                                                                        (c) The frequency of inspections and
                                                     (a) Hazards Analysis (facility level).               after an emergency shutdown;
                                                                                                             (7) Bypassing and flagging;                         tests of your equipment and systems
                                                  For a hazards analysis (facility level),                                                                       must be in accordance with MMS
                                                  you must perform an initial hazards                        (8) Safety and environmental
                                                                                                          consequences of deviating from your                    regulations and meet the manufacturer’s
                                                  analysis on each facility on or before                                                                         recommendations. Inspections and tests
                                                  [THE DATE 1 YEAR AFTER THE                              equipment operating limits and steps
                                                                                                          required to correct or avoid this                      can be performed more frequently if
                                                  EFFECTIVE DATE OF THE FINAL                                                                                    determined to be necessary by prior
                                                  RULE]. The hazards analysis must be                     deviation;
                                                                                                             (9) Properties of, and hazards                      operating experience.
                                                  appropriate to the complexity of the
                                                                                                          presented by, the chemicals used in the                  (d) The documentation of each
                                                  operation and must identify, evaluate,
                                                                                                          operations;                                            inspection and test that has been
                                                  and manage the hazards involved in the
                                                                                                             (10) Precautions you will take to                   performed on your equipment and
                                                  operation.
                                                     (1) The hazards analysis must address                prevent the exposure of chemicals used                 systems. This documentation must
                                                  the following:                                          in your operations to personnel and the                identify the date of the inspection or
                                                     (i) Hazards of the operation;                        environment. The precautions must                      test, the name and position, and include
                                                     (ii) Previous incidents related to the               include control technology, personal                   the signature of the person who
                                                  operation you are evaluating. Special                   protective equipment, and measures to                  performed the inspection or test, the
                                                  attention should be given in your                       be taken if physical contact or airborne               serial number or other identifier of the
                                                  hazards analysis to any incident in                     exposure occurs;                                       equipment on which the inspection or
                                                  which you were issued an Incident of                       (11) Raw materials used in your                     test was performed, a description of the
                                                  Noncompliance, civil, or criminal                       operations and the quality control                     inspection or test performed, and the
                                                  penalty;                                                procedures you used in purchasing                      results of the inspection test.
                                                     (iii) Control technology applicable to               these raw materials;                                     (e) The correction of deficiencies
                                                  the operation your hazards analysis is                     (12) Control of hazardous chemical                  associated with equipment and systems
                                                  evaluating;                                             inventory; and                                         that are outside the manufacturer’s
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                                                     (iv) A qualitative evaluation of the                    (13) Coastal and marine                             recommended limits before further use.
                                                  possible safety and health effects on                   environmental impacts identified                         (f) The installation of new equipment
                                                  employees, and potential impacts to the                 through your hazards analysis.                         and constructing systems. The
                                                  coastal and marine environments,                           (b) Operating procedures must be                    procedures must address the application
                                                  which may result if the control                         accessible to all employees involved in                for which they will be used.
                                                  technology fails; and                                   the operations.                                          (g) The modification of existing
                                                     (2) The hazards analysis must be                        (c) Operating procedures must be                    equipment and systems. The procedures
                                                  performed by a person(s) with                           reviewed as often as necessary to assure               must assure that they are modified for


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                                                                        Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules                                             28653

                                                  the application for which they will be                  to the lessee or other contractors.                      (e) You must retain copies of either
                                                  used.                                                   Domestic services include janitorial                   the independent third party’s SEMS
                                                    (h) The verification that inspections                 work, food and beverage service,                       records or self audit for a period of 5
                                                  and tests are being performed. The                      laundry service, housekeeping, and                     years.
                                                  procedures must be appropriate to                       similar activities.
                                                  assure that equipment and systems are                                                                          § 250.1911 What are my documentation
                                                                                                            (b) You must document that your
                                                                                                                                                                 and recordkeeping requirements?
                                                  installed consistent with design                        contracted employees are competent in
                                                  specifications and the manufacturer’s                   the work practices necessary to perform                   (a) Your SEMS program procedures
                                                  instructions.                                           their job in a safe and environmentally                must ensure that records and documents
                                                    (i) The assurance that maintenance                    sound manner, and have policies and                    are maintained for a period of 5 years
                                                  materials, spare parts, and equipment                   practices in place that are consistent                 in an effective manner. Effective
                                                  are suitable for the applications for                   with your SEMS program.                                document and record control includes
                                                  which they will be used.                                Documentation of each contracted                       the means of identifying, collecting,
                                                                                                          employee’s competency to perform his/                  indexing, filing, storing, maintaining,
                                                  § 250.1908 What criteria for Management
                                                                                                          her job and a copy of the contractor’s                 and retrieving the documents and
                                                  of Change must my SEMS program meet?                                                                           records.
                                                                                                          SEMS program must be kept by the
                                                    (a) You must develop and implement                                                                              (b) Records must be dated, signed,
                                                                                                          operator and the contractor at the
                                                  written management of change                                                                                   and include information on compliance
                                                                                                          facility where the contracted operations
                                                  procedures for modifications associated                                                                        with applicable legal requirements and
                                                                                                          are being performed.
                                                  with the following:                                                                                            the results of SEMS audits and reviews.
                                                    (1) Equipment,                                        § 250.1910 What are my responsibilities                Details of deficiencies, corrective and
                                                    (2) Operating procedures,                             when conducting a SEMS audit?                          preventative actions, participation in
                                                    (3) Personnel changes (including                         (a) You must perform an audit of your               training, permits, licenses, or other
                                                  contractors),                                           entire SEMS program at least once every                forms of legal authorization, inspection
                                                    (4) Materials, and                                    3 years to evaluate compliance with the                and calibration activity, and results of
                                                    (5) Operating conditions.                             requirements of this subpart, and to                   operational controls (maintenance,
                                                    (b) Management of change procedures                   identify areas in which safety and                     design, and manufacture) should also be
                                                  do not apply to situations involving                    environmental performance needs to be                  included.
                                                  replacement in kind (such as,                           improved. You must have your SEMS                      § 250.1912 What qualifications must an
                                                  replacement of one component by                         program audited by either an                           independent third party or my designated
                                                  another component with the same                         independent third party or your                        and qualified personnel meet?
                                                  performance capabilities).                              designated and qualified personnel (see                  (a) An independent third party or
                                                    (c) You must review all changes prior                 § 250.1912).                                           designated and qualified personnel
                                                  to their implementation.                                   (b) Representatives from MMS may                    must possess the following
                                                    (d) The following items must be                       participate in your SEMS audit as                      qualifications:
                                                  included in your management of change                   observers. You must notify the Regional                  (1) Previous experience with SEMS,
                                                  procedures:                                             Supervisory Field Office (RSFO) at least               or similar management related
                                                    (1) The technical basis for the change;               30 days prior to conducting your audit                 programs;
                                                    (2) Impact of the change on safety,                   so that MMS may make arrangements to                     (2) Technical capabilities of the
                                                  health, and the coastal and marine                      participate in the audit.                              individual or organization for the
                                                  environments;                                              (c) You must submit a report to the                 specific project;
                                                    (3) Necessary time period to                          RSFO within 30 days of the audit                         (3) In-house availability of or access to
                                                  implement the change; and                               completion date. The report must                       technology, including computer
                                                    (4) Management approval procedures                    outline the results of the audit including             programs or hardware to be used for this
                                                  for the change.                                         deficiencies identified, a timetable or                specific project;
                                                    (e) Employees, including contractors                  schedule for implementing corrections                    (4) Ability to perform the independent
                                                  whose job tasks will be affected by a                   to deficiencies, and the person                        third party functions for the specific
                                                  change in the operation, must be                        responsible for correcting each                        project considering current
                                                  informed of, and trained in, the change                 identified deficiency including their job              commitments;
                                                  prior to startup of the process or affected             title.                                                   (5) Previous experience with MMS
                                                  part of the operation; and                                 (d) The MMS may verify that                         regulatory requirements and procedures;
                                                    (f) If a management of change results                 corrective actions have been undertaken                and
                                                  in a change in the operating procedures                 and that these actions effectively                       (6) Procedures to avoid conflicts of
                                                  of your SEMS program, such changes                      address the audit findings. Upon                       interest with the SEMS program they are
                                                  must be documented and dated.                           request, you must make available for                   reviewing.
                                                                                                          MMS review:                                              (b) You must document the
                                                  § 250.1909 What criteria must be
                                                                                                             (1) Your SEMS program, including                    qualifications for the independent third
                                                  documented in my SEMS program for
                                                  contractor selection?                                   information about your contractors;                    party or your designated and qualified
                                                                                                             (2) The qualifications of your                      personnel.
                                                    Your SEMS program must document                                                                                (c) The MMS reserves the right to
                                                  contractor selection criteria. When                     designated and qualified personnel or
                                                                                                                                                                 evaluate independent third parties as
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                                                  selecting a contractor, you must obtain                 your independent third party;
                                                                                                                                                                 needed.
                                                  and evaluate information regarding the                     (3) The SEMS report prepared by your
                                                  contractor’s safety and environmental                   designated and qualified personnel or                  § 250.1913 How will MMS determine if my
                                                  performance.                                            your independent third party;                          SEMS program is effective?
                                                    (a) A contractor is anyone performing                    (4) The SEMS audits conducted of                      (a) The MMS or its authorized
                                                  work for the lessee. However, these                     your program; and                                      representative may evaluate or visit
                                                  requirements do not apply to                               (5) Other supporting documents or                   your facility to determine whether your
                                                  contractors providing domestic services                 information.                                           SEMS program is in place, adequate,


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                                                  28654                 Federal Register / Vol. 74, No. 115 / Wednesday, June 17, 2009 / Proposed Rules

                                                  and effective in protecting the safety                  ENVIRONMENTAL PROTECTION                               Rm. 6428, 1201 Constitution Ave., NW.,
                                                  and health of workers, the environment,                 AGENCY                                                 Washington, DC. Attention: Docket ID
                                                  and preventing incidents. These                                                                                Number EPA–HQ–OPPT–2007–0490.
                                                  evaluations or visits may be random or                  40 CFR Part 799                                        The DCO is open from 8 a.m. to 4 p.m.,
                                                  based upon the OCS lease operator’s or                  [EPA–HQ–OPPT–2007–0490; FRL–8416–8]                    Monday through Friday, excluding legal
                                                  contractor’s performance.                                                                                      holidays. The telephone number for the
                                                                                                          RIN 2070–AJ34                                          DCO is (202) 564–8930. Such deliveries
                                                     (b) The MMS or its authorized                                                                               are only accepted during the DCO’s
                                                  representative may evaluate your SEMS                   Testing of Certain Nonylphenol and                     normal hours of operation, and special
                                                  program, including documentation of                     Nonylphenol Ethoxylate Substances                      arrangements should be made for
                                                  contractors, independent third parties,                                                                        deliveries of boxed information.
                                                                                                          AGENCY: Environmental Protection
                                                  and designated and qualified personnel,                                                                           Instructions: Direct your comments to
                                                                                                          Agency (EPA).
                                                  and audit reports to assess your SEMS                                                                          docket ID number EPA–HQ–OPPT–
                                                                                                          ACTION: Advance notice of proposed
                                                  program.                                                                                                       2007–0490. EPA’s policy is that all
                                                                                                          rulemaking.
                                                     (1) You must be prepared to explain                                                                         comments received will be included in
                                                  and demonstrate the procedures and                      SUMMARY: On June 6, 2007, the                          the docket without change and may be
                                                  policies included in your SEMS                          Environmental Law and Policy Center,                   made available on-line at http://
                                                  program and produce evidence to                         the Sierra Club, the Pacific Coast                     www.regulations.gov, including any
                                                                                                          Federation of Fishermen’s Associations,                personal information provided, unless
                                                  support your explanation.
                                                                                                          the Washington Toxics Coalition,                       the comment includes information
                                                     (2) The MMS or its authorized                        Physicians for Social Responsibility,                  claimed to be Confidential Business
                                                  representative may conduct a site visit                 and UNITE HERE (hereinafter                            Information (CBI) or other information
                                                  on your facility to verify that personnel               ‘‘petitioners’’), petitioned EPA under                 whose disclosure is restricted by statute.
                                                  are following your SEMS program and                     section 21 of the Toxic Substances                     Do not submit information that you
                                                  can explain and demonstrate the                         Control Act (TSCA) to initiate                         consider to be CBI or otherwise
                                                  procedures and policies included in                     rulemaking proceedings under section 4                 protected through regulations.gov or e-
                                                  your SEMS program and produce                           and section 6 of TSCA for the                          mail. The regulations.gov website is an
                                                  evidence to support their explanation                   substances nonylphenol (NP) and                        ‘‘anonymous access’’ system, which
                                                  for a specific task.                                    nonylphenol ethoxylates (NPEs). EPA                    means EPA will not know your identity
                                                                                                          granted the petitioners’ request for                   or contact information unless you
                                                     (3) If MMS directs you to do an                                                                             provide it in the body of your comment.
                                                  evaluation, you will be responsible for                 chronic aquatic toxicity testing and a
                                                                                                          few other aspects of the petitioners’                  If you send an e-mail comment directly
                                                  all costs associated with the evaluation                                                                       to EPA without going through
                                                  of your SEMS program.                                   TSCA section 4 request, but denied all
                                                                                                          of the petitioners’ section 6 requests.                regulations.gov, your e-mail address
                                                  § 250.1914 What happens if MMS finds                    Subsequently, on October 24, 2007, the                 will be automatically captured and
                                                  shortcomings in my SEMS program?                        petitioners filed suit in the U.S. District            included as part of the comment that is
                                                                                                          Court for the Northern District of                     placed in the docket and made available
                                                    If MMS determines that your SEMS                                                                             on the Internet. If you submit an
                                                                                                          California challenging EPA’s denial of
                                                  program is not in compliance with this                                                                         electronic comment, EPA recommends
                                                                                                          their TSCA section 21 petition. The
                                                  subpart, we may initiate one or more of                 lawsuit was mediated and, in an                        that you include your name and other
                                                  the following enforcement actions:                                                                             contact information in the body of your
                                                                                                          agreement signed on December 30,
                                                    (a) Issue an Incident(s) of                                                                                  comment and with any disk or CD–ROM
                                                                                                          2008, the parties settled the case. EPA
                                                  Noncompliance;                                                                                                 you submit. If EPA cannot read your
                                                                                                          is now providing this advance notice of
                                                                                                                                                                 comment due to technical difficulties
                                                    (b) Require you to revise and submit                  proposed rulemaking (ANPRM) for
                                                                                                                                                                 and cannot contact you for clarification,
                                                  to MMS your plan to address identified                  aquatic and sediment toxicity testing
                                                                                                                                                                 EPA may not be able to consider your
                                                  deficiencies in your SEMS program;                      under TSCA section 4 for these
                                                                                                                                                                 comment. Electronic files should avoid
                                                                                                          substances, and is also requesting
                                                    (c) Assess civil/criminal penalties; or                                                                      the use of special characters, any form
                                                                                                          comment on gathering data under TSCA
                                                                                                                                                                 of encryption, and be free of any defects
                                                    (d) Initiate probationary or                          and through other means to facilitate the
                                                                                                                                                                 or viruses. For additional information
                                                  disqualification procedures from serving                evaluation of industrial laundry worker                about EPA’s public docket, visit the EPA
                                                  as an OCS operator.                                     exposure to NPEs.                                      Docket Center homepage at http://
                                                                                                          DATES: Comments must be received on                    www.epa.gov/epahome/dockets.htm.
                                                  § 250.1915 What are my responsibilities
                                                                                                          or before September 15, 2009.                             Docket: All documents in the docket
                                                  for submitting OCS performance measure
                                                  data?                                                   ADDRESSES: Submit your comments,                       are listed in the docket index available
                                                                                                          identified by docket identification (ID)               in regulations.gov. Although listed in
                                                    You must submit Form MMS–131 on                       number EPA–HQ–OPPT–2007–0490, by                       the index, some information is not
                                                  an annual basis, for the previous                       one of the following methods:                          publicly available, e.g., CBI or other
                                                  calendar year, by March 31 of each year.                   • Federal eRulemaking Portal: http://               information whose disclosure is
                                                  [FR Doc. E9–14211 Filed 6–16–09; 8:45 am]               www.regulations.gov. Follow the on-line                restricted by statute. Certain other
                                                                                                          instructions for submitting comments.                  material, such as copyrighted material,
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                                                  BILLING CODE 4310–MR–P
                                                                                                             • Mail: Document Control Office                     will be publicly available only in hard
                                                                                                          (7407M), Office of Pollution Prevention                copy. Publicly available docket
                                                                                                          and Toxics (OPPT), Environmental                       materials are available electronically at
                                                                                                          Protection Agency, 1200 Pennsylvania                   http://www.regulations.gov, or, if only
                                                                                                          Ave., NW., Washington, DC 20460–                       available in hard copy, at the OPPT
                                                                                                          0001.                                                  Docket. The OPPT Docket is located in
                                                                                                             • Hand Delivery: OPPT Document                      the EPA Docket Center (EPA/DC) at Rm.
                                                                                                          Control Office (DCO), EPA East Bldg.,                  3334, EPA West Bldg., 1301


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