Oil and Gas and Sulphur Operations in the Outer Continental Shelf (OCS)-Document Incorporated by Reference-American Petroleum Institute (API) 510, 7401-7403 [05-2746]
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Federal Register / Vol. 70, No. 29 / Monday, February 14, 2005 / Rules and Regulations
Current
OMB control
No.
CFR part or section where
identified and described
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301.9000–5 ...............................
1545–1850
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Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
Approved: February 3, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary of the
Treasury.
[FR Doc. 05–2816 Filed 2–11–05; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
RIN 1010–AC95
Oil and Gas and Sulphur Operations in
the Outer Continental Shelf (OCS)—
Document Incorporated by
Reference—American Petroleum
Institute (API) 510
Minerals Management Service
(MMS), Interior.
ACTION: Final rule.
AGENCY:
SUMMARY: MMS is adding a document to
be incorporated by reference into the
regulations governing oil and gas and
sulphur operations in the OCS. The new
document, API 510, is titled ‘‘Pressure
Vessel Inspection Code: Maintenance
Inspection, Rating, Repair, and
Alteration.’’ This incorporation will
ensure that lessees use the best available
and safest technologies while
maintaining, repairing and altering
pressure vessels in use on the OCS.
DATES: This rule is effective March 16,
2005. The incorporation by reference of
the publication listed in the regulation
is approved by the Director of the
Federal Register as of March 16, 2005.
FOR FURTHER INFORMATION CONTACT:
Richard Ensele, Regulations and
Standards Branch, at (703) 787–1583.
SUPPLEMENTARY INFORMATION: MMS uses
standards, specifications, and
recommended practices developed by
standard-setting organizations and the
oil and gas industry for establishing
requirements for activities on the OCS.
This practice, known as incorporation
by reference, allows us to incorporate
the provisions of technical standards
into the regulations without increasing
VerDate jul<14>2003
15:21 Feb 11, 2005
Jkt 205001
the volume of the Code of Federal
Regulations (CFR). The legal effect of
incorporation by reference is that the
material is treated as if it were
published in the Federal Register. This
material, like any other properly issued
regulation, then has the force and effect
of law. MMS holds lessees and
operators accountable for complying
with the documents incorporated by
reference in our regulations. The
regulations found at 1 CFR part 51
govern how MMS and other Federal
agencies incorporate various documents
by reference. Agencies can only
incorporate by reference through
publication in the Federal Register.
Agencies must also obtain approval
from the Director of the Federal Register
for each publication incorporated by
reference. Incorporation by reference of
a document or publication is limited to
the specific edition, or specific edition
and supplement or addendum, cited in
the regulations.
The rule will incorporate by reference
the provisions of the Eighth Edition of
API 510 into MMS regulations. MMS
has reviewed this document and has
determined that the eighth edition
should be incorporated into the
regulations to ensure the use of the best
available and safest technologies.
The proposed rule was published on
December 27, 2001 (66 FR 66848) with
a 60-day comment period. We received
comments from two parties concerning
the proposed rule to incorporate API
510. One commenter felt that the
National Board Inspection Code (NBIC)
was a better document to incorporate for
the inspection, repair, rating, and
alteration of pressure vessels. MMS
agrees that the NBIC is an excellent
document. However, we have chosen to
adopt the API document. As we stated
in the proposed rule, it is the intention
of both API and NBIC that their
respective scopes not overlap. NBIC
advises in its scope that ‘‘It is
recognized that an American Petroleum
Institute Inspection Code, API–510,
exists covering the maintenance
inspection, repair, alteration and rerating procedures for pressure vessels
used by the petroleum and chemical
process industries, which is applicable
in these special circumstances. It is the
intent that this Inspection Code (NBIC)
cover installations other than those
covered by API–510 unless the
jurisdiction rules otherwise.’’
The second commenter, an industry
trade organization, recommended the
incorporation of API 510 into the
regulations, with the exception of
sections 6 and 8.5. Section 6 of API 510
is entitled, ‘‘Inspection and Testing of
Pressure Vessels and Pressure Relieving
PO 00000
Frm 00023
Fmt 4700
Sfmt 4700
7401
Devices.’’ Section 8 is entitled,
‘‘Alternative Rules for Exploration and
Production Pressure Vessels.’’ Section
6.5 and section 8.5 are both entitled,
‘‘Pressure Relieving Devices,’’ with
section 8.5 referring back to section 6.5
for specific procedures. The commenter
pointed out that MMS has more
stringent requirements for pressure
relieving devices elsewhere in the
regulations (§ 250.804(a)(2) and
§ 250.1630(a)(1)). MMS agrees. We will
incorporate API 510 into the regulations
except for sections 6.5 and 8.5, since
those two sections pertain specifically
to pressure relieving devices. The rest of
section 6 pertains to pressure vessels
and should be incorporated into the
regulations. We will also drop the
reference to API 510 that appeared in
the proposed rule in 30 CFR
250.803(b)(1)(i) and 30 CFR
250.1629(b)(1)(i), covering pressure
safety relief valves.
Procedural Matters
Regulatory Planning and Review
(Executive Order 12866)
This rule is not a significant rule
under Executive Order 12866. The
Office of Management and Budget
(OMB) has determined that it is not a
significant rule and will not review the
rule.
(1) This rule will not have an effect of
$100 million or more on the economy.
It will not adversely affect in a material
way the economy, productivity,
competition, jobs, the environment,
public health or safety, or State, local,
or tribal governments or communities.
The rule would have no significant
economic impact because the document
does not contain any significant
revisions that will cause lessees or
operators to change their business
practices. The document will not
require the retrofitting of any facilities.
The document may lead to minimal
changes in operating practices, but the
associated costs will be very minor.
(2) This rule will not create a serious
inconsistency or otherwise interfere
with an action taken or planned by
another agency. The rule does not affect
how lessees or operators interact with
other agencies. Nor does this rule affect
how MMS will interact with other
agencies.
(3) This rule does not alter the
budgetary effects or entitlements, grants,
user fees, or loan programs or the rights
or obligations of their recipients. The
rule only addresses the maintenance
inspection, rating, repair, and alteration
of pressure vessels in use on OCS
facilities.
E:\FR\FM\14FER1.SGM
14FER1
7402
Federal Register / Vol. 70, No. 29 / Monday, February 14, 2005 / Rules and Regulations
(4) This rule does not raise novel legal
or policy issues.
Regulatory Flexibility (RF) Act
The Department of the Interior (DOI)
certifies that this rule will not have a
significant economic effect on a
substantial number of small entities
under the RF Act (5 U.S.C. 601 et seq.).
This rule applies to all lessees and
operators that conduct activities on the
OCS. Small lessees and operators that
conduct activities under this rule would
fall under the Small Business
Administration’s (SBA) North American
Industry Classification System codes
211111, Crude Petroleum and Natural
Gas Extraction and 213111, Drilling Oil
and Gas Wells. Under these codes, SBA
considers all companies with fewer than
500 employees to be a small business.
MMS estimates that of the 130 lessees
and operators that explore for and
produce oil and gas on the OCS,
approximately 90 are small businesses
(70 percent). However, because of the
extremely high cost and technical
complexity involved in exploration and
development offshore, the vast majority
of lessees and operators that will be
affected will be companies with larger
revenues.
The API document proposed for
incorporation into MMS regulations
covers pressure vessels on offshore
structures. Offshore structures can cost
hundreds of millions of dollars to build
and install. The document to be
incorporated by this rule has been used
by the industry for many years and the
latest edition represents the current
state-of-the-art industry practices.
Boilers and pressure vessels currently
being built are being constructed
according to the requirements in the
American Society of Mechanical
Engineers Code. Existing pressure vessel
equipment is being inspected and
maintained to the requirements of API
510. Additional costs, if any, are already
accepted by the industry. As discussed
above, MMS does not believe that this
rule will have a significant impact on
the lessees or operators who explore for
and produce oil and gas on the OCS,
including those that are classified as
small businesses.
Your comments are important. The
Small Business and Agriculture
Regulatory Enforcement Ombudsman
and 10 Regional Fairness Boards were
established to receive comments from
small businesses about Federal agency
enforcement actions. The Ombudsman
will annually evaluate the enforcement
activities and rate each agency’s
responsiveness to small business. If you
wish to comment on the enforcement
actions of MMS, call 1–888–REG–FAIR
VerDate jul<14>2003
15:21 Feb 11, 2005
Jkt 205001
(1–888–734–3247). You may comment
to the SBA without fear of retaliation.
Disciplinary action for retaliation by an
MMS employee may include suspension
or termination from employment with
the DOI.
Small Business Regulatory Enforcement
Fairness Act (SBREFA)
This rule is not a major rule under 5
U.S.C. 804(2), SBREFA. This rule:
(a) Does not have an annual effect on
the economy of $100 million or more.
The proposed rule will not cause any
significant costs to lessees or operators.
The only costs will be the purchase of
the new document and minor revisions
to some operating and maintenance
procedures. The minor revisions to
operating and maintenance procedures
may result in some minor costs.
(b) Will not cause a major increase in
costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions. The minor increase
in cost will not change the way the oil
and gas industry conducts business, nor
will it affect regional oil and gas prices.
Therefore, it will not cause major cost
increases for consumers, the oil and gas
industry, or any government agencies.
(c) Does not have significant adverse
effect on competition, employment,
investment, productivity, innovation, or
the ability of U.S.-based enterprises to
compete with foreign-based enterprises.
All lessees and operators, regardless of
nationality, must comply with the
requirements of this rule. The rule will
not affect competition, employment,
investment, productivity, innovation, or
the ability of U.S.-based enterprises to
compete with foreign-based enterprises.
Paperwork Reduction Act (PRA) of 1995
There are no information collection
requirements associated with this rule.
DOI has determined that this regulation
does not contain information collection
requirements pursuant to PRA (44
U.S.C. 3501 et seq.) We will not be
submitting an information collection
request to OMB.
Federalism (Executive Order 13132)
According to Executive Order 13132,
the rule does not have federalism
implications. This rule does not
substantially and directly affect the
relationship between the Federal and
State Governments. This rule will
simply add one additional document
incorporated by reference to ensure that
the industry uses the best and safest
technologies. This rule does not impose
costs on States or localities. Any costs
will be the responsibility of the lessees
and operators.
PO 00000
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Fmt 4700
Sfmt 4700
Consultation and Coordination With
Indian Tribal Governments (Executive
Order 13175)
In accordance with Executive Order
13175, this rule does not have tribal
implications that impose substantial
direct compliance costs on Indian tribal
governments.
Takings Implication Assessment (TIA)
(Executive Order 12630)
According to Executive Order 12630,
this rule does not have significant TIA
implications. A TIA is not required. The
rule revises existing operating
regulations. It does not prevent any
lessee or operator from performing
operations on the OCS, providing they
follow the regulations. Thus, MMS did
not need to prepare a TIA according to
Executive Order 12630, Governmental
Actions and Interference with
Constitutionally Protected Property
Rights.
Energy Supply, Distribution, or Use
(Executive Order 13211)
The rule does not have a significant
effect on energy supply, distribution, or
use because it merely adds a new
standard to be incorporated by reference
that will provide for uniform
maintenance and inspection practices.
Thus, a Statement of Energy Supply,
Distribution, or Use is not required.
Civil Justice Reform (Executive Order
12988)
According to Executive Order 12988,
the Office of the Solicitor has
determined that this rule does not
unduly burden the judicial system and
meets the requirements of Sections 3(a)
and 3(b)(2) of the Order.
National Environmental Policy Act
(NEPA)
This rule does not constitute a major
Federal action significantly affecting the
quality of the human environment. An
environmental impact statement is not
required.
Unfunded Mandates Reform Act
(UMRA) of 1995
This rule does not impose an
unfunded mandate on State, local, and
tribal governments or the private sector
of more than $100 million per year. The
rule does not have a significant or
unique effect on State, local, or tribal
governments or the private sector. A
statement, containing the information
required by the UMRA (2 U.S.C. 1531 et
seq.), is not required.
List of Subjects in 30 CFR Part 250
Environmental impact statements,
Environmental protection, Government
E:\FR\FM\14FER1.SGM
14FER1
Federal Register / Vol. 70, No. 29 / Monday, February 14, 2005 / Rules and Regulations
contracts, Incorporation by reference,
Investigations, Mineral royalties, Oil
and gas development and production,
Oil and gas exploration, Oil and gas
reserves, Outer continental shelf,
Penalties, Pipelines, Public lands—
mineral resources, Public lands—rightsof-way, Reporting and recordkeeping
requirements, Sulphur development and
production, Sulphur exploration, Surety
bonds.
provisions of the American Petroleum
Institute’s Pressure Vessel Inspection
Code: Maintenance Inspection, Rating,
Repair, and Alteration API 510 (except
Sections 6.5 and 8.5), which is
incorporated by reference in § 250.198
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*
I 4. In § 250.1629, paragraph (b)(1)
introductory text is revised to read as
follows:
Dated: February 2, 2005.
Rebecca W. Watson,
Assistant Secretary—Land and Minerals
Management.
§ 250.1629 Additional production and fuel
gas system requirements.
*
For the reasons stated in the preamble,
the Minerals Management Service
amends 30 CFR Part 250 as follows:
I
PART 250—OIL AND GAS AND
SULPHUR OPERATIONS IN THE
OUTER CONTINENTAL SHELF
1. The authority citation for part 250
continues to read as follows:
I
Authority: 43 U.S.C. 1331 et seq.
2. In § 250.198, in the table in
paragraph (e), a new entry for document
API 510 is added in alphanumeric order
to read as follows:
I
§ 250.198 Documents incorporated by
reference.
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(e) * * *
*
Title of document
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*
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*
(b) * * *
(1) Pressure and fired vessels must be
designed, fabricated, and code stamped
in accordance with the applicable
provisions of sections I, IV, and VIII of
the American Society of Mechanical
Engineers (ASME) Boiler and Pressure
Vessel Code. Pressure and fired vessels
must have maintenance inspection,
rating, repair, and alteration performed
in accordance with the provisions of the
American Petroleum Institute’s Pressure
Vessel Inspection Code: Maintenance
Inspection, Rating, Repair, and
Alteration, API 510 (except Sections 6.5
and 8.5), which is incorporated by
reference in § 250.198.
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[FR Doc. 05–2746 Filed 2–11–05; 8:45 am]
*
BILLING CODE 4310–MR–P
Incorporated by reference at
DEPARTMENT OF THE TREASURY
31 CFR Part 50
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*
*
API 510, Pressure Vessel Inspection Code:
Maintenance Inspection, Rating, Repair,
and Alteration, except
for Sections 6.5 and
8.5, Eighth Edition,
June 1997, API Stock
No. C51008.
*
*
§ 250.803(b)(1).
§ 250.1629(b)(1).
ACTION:
3. In § 250.803, paragraph (b)(1)
introductory text is revised to read as
follows:
§ 250.803 Additional production system
requirements.
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*
*
*
(b) * * *
(1) Pressure and fired vessels.
Pressure and fired vessels must be
designed, fabricated, and code stamped
in accordance with the applicable
provisions of Sections I, IV, and VIII of
the American Society of Mechanical
Engineers (ASME) Boiler and Pressure
Vessel Code. Pressure and fired vessels
must have maintenance inspection,
rating, repair, and alteration performed
in accordance with the applicable
15:21 Feb 11, 2005
Terrorism Risk Insurance Program;
Technical Amendments to ‘‘Make
Available’’ Provision and ‘‘Insurer
Deductible’’ Definition
Departmental Offices, Treasury.
Final rule.
AGENCY:
I
VerDate jul<14>2003
RIN 1505–ZA01
Jkt 205001
SUMMARY: The Department of the
Treasury (Treasury) is issuing this final
rule as part of its implementation of
Title I of the Terrorism Risk Insurance
Act of 2002 (Act). The Act established
a temporary Terrorism Insurance
Program (Program) under which the
Federal Government will share the risk
of insured loss from certified acts of
terrorism with commercial property and
casualty insurers until the Program ends
on December 31, 2005. This final rule
makes minor technical changes to
Subpart A of Part 50 of Title 31. One
change conforms existing regulations to
the June 18, 2004 determination by the
Secretary of the Treasury to extend the
‘‘make available’’ provisions of section
103(c) of the Act through the third year
PO 00000
Frm 00025
Fmt 4700
Sfmt 4700
7403
of the Program (calendar year 2005). A
second change clarifies the definition of
the insurer deductible for Program Year
3 for certain newly formed insurers to
more closely parallel the language of the
Act.
DATES: This final rule is effective
February 14, 2005.
FOR FURTHER INFORMATION CONTACT:
David Brummond, Legal Counsel, or
Howard Leikin, Senior Insurance
Advisor, Terrorism Risk Insurance
Program, (202) 622–6770 (not a toll-free
number).
SUPPLEMENTARY INFORMATION:
I. Background
On November 26, 2002, the President
signed into law the Terrorism Risk
Insurance Act of 2002 (Pub. L. 107–297,
116 Stat. 2322). The Act was effective
immediately. The Act’s purposes are to
address market disruptions, ensure the
continued widespread availability and
affordability of commercial property
and casualty insurance for terrorism
risk, and to allow for a transition period
for the private markets to stabilize and
build capacity while preserving state
insurance regulation and consumer
protections.
Title I of the Act establishes a
temporary Federal program of shared
public and private compensation for
insured commercial property and
casualty losses resulting from an act of
terrorism, which as defined in the Act
is certified by the Secretary of the
Treasury, in concurrence with the
Secretary of State and the Attorney
General. The Act authorizes Treasury to
administer and implement the
Terrorism Risk Insurance Program, and
to issue regulations and procedures. The
Program provides a Federal reinsurance
backstop for three years. The Program
ends on December 31, 2005. Thereafter,
the Act provides Treasury with certain
continuing authority to take actions as
necessary to ensure payment,
recoupment, adjustments of
compensation, and reimbursement for
insured losses arising out of any act of
terrorism (as defined under the Act)
occurring during the period between
November 26, 2002, and December 31,
2005.
Each entity that meets the definition
of ‘‘insurer’’ (well over 2000 firms) must
participate in the Program. The amount
of the Federal share of an insured loss
resulting from an act of terrorism is to
be determined based upon insurance
company deductibles and excess loss
sharing with the Federal Government, as
specified by the Act and the
implementing regulations. An insurer’s
deductible increases each year of the
E:\FR\FM\14FER1.SGM
14FER1
Agencies
[Federal Register Volume 70, Number 29 (Monday, February 14, 2005)]
[Rules and Regulations]
[Pages 7401-7403]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-2746]
=======================================================================
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
RIN 1010-AC95
Oil and Gas and Sulphur Operations in the Outer Continental Shelf
(OCS)--Document Incorporated by Reference--American Petroleum Institute
(API) 510
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: MMS is adding a document to be incorporated by reference into
the regulations governing oil and gas and sulphur operations in the
OCS. The new document, API 510, is titled ``Pressure Vessel Inspection
Code: Maintenance Inspection, Rating, Repair, and Alteration.'' This
incorporation will ensure that lessees use the best available and
safest technologies while maintaining, repairing and altering pressure
vessels in use on the OCS.
DATES: This rule is effective March 16, 2005. The incorporation by
reference of the publication listed in the regulation is approved by
the Director of the Federal Register as of March 16, 2005.
FOR FURTHER INFORMATION CONTACT: Richard Ensele, Regulations and
Standards Branch, at (703) 787-1583.
SUPPLEMENTARY INFORMATION: MMS uses standards, specifications, and
recommended practices developed by standard-setting organizations and
the oil and gas industry for establishing requirements for activities
on the OCS. This practice, known as incorporation by reference, allows
us to incorporate the provisions of technical standards into the
regulations without increasing the volume of the Code of Federal
Regulations (CFR). The legal effect of incorporation by reference is
that the material is treated as if it were published in the Federal
Register. This material, like any other properly issued regulation,
then has the force and effect of law. MMS holds lessees and operators
accountable for complying with the documents incorporated by reference
in our regulations. The regulations found at 1 CFR part 51 govern how
MMS and other Federal agencies incorporate various documents by
reference. Agencies can only incorporate by reference through
publication in the Federal Register. Agencies must also obtain approval
from the Director of the Federal Register for each publication
incorporated by reference. Incorporation by reference of a document or
publication is limited to the specific edition, or specific edition and
supplement or addendum, cited in the regulations.
The rule will incorporate by reference the provisions of the Eighth
Edition of API 510 into MMS regulations. MMS has reviewed this document
and has determined that the eighth edition should be incorporated into
the regulations to ensure the use of the best available and safest
technologies.
The proposed rule was published on December 27, 2001 (66 FR 66848)
with a 60-day comment period. We received comments from two parties
concerning the proposed rule to incorporate API 510. One commenter felt
that the National Board Inspection Code (NBIC) was a better document to
incorporate for the inspection, repair, rating, and alteration of
pressure vessels. MMS agrees that the NBIC is an excellent document.
However, we have chosen to adopt the API document. As we stated in the
proposed rule, it is the intention of both API and NBIC that their
respective scopes not overlap. NBIC advises in its scope that ``It is
recognized that an American Petroleum Institute Inspection Code, API-
510, exists covering the maintenance inspection, repair, alteration and
re-rating procedures for pressure vessels used by the petroleum and
chemical process industries, which is applicable in these special
circumstances. It is the intent that this Inspection Code (NBIC) cover
installations other than those covered by API-510 unless the
jurisdiction rules otherwise.''
The second commenter, an industry trade organization, recommended
the incorporation of API 510 into the regulations, with the exception
of sections 6 and 8.5. Section 6 of API 510 is entitled, ``Inspection
and Testing of Pressure Vessels and Pressure Relieving Devices.''
Section 8 is entitled, ``Alternative Rules for Exploration and
Production Pressure Vessels.'' Section 6.5 and section 8.5 are both
entitled, ``Pressure Relieving Devices,'' with section 8.5 referring
back to section 6.5 for specific procedures. The commenter pointed out
that MMS has more stringent requirements for pressure relieving devices
elsewhere in the regulations (Sec. 250.804(a)(2) and Sec.
250.1630(a)(1)). MMS agrees. We will incorporate API 510 into the
regulations except for sections 6.5 and 8.5, since those two sections
pertain specifically to pressure relieving devices. The rest of section
6 pertains to pressure vessels and should be incorporated into the
regulations. We will also drop the reference to API 510 that appeared
in the proposed rule in 30 CFR 250.803(b)(1)(i) and 30 CFR
250.1629(b)(1)(i), covering pressure safety relief valves.
Procedural Matters
Regulatory Planning and Review (Executive Order 12866)
This rule is not a significant rule under Executive Order 12866.
The Office of Management and Budget (OMB) has determined that it is not
a significant rule and will not review the rule.
(1) This rule will not have an effect of $100 million or more on
the economy. It will not adversely affect in a material way the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities. The rule would have no significant economic impact because
the document does not contain any significant revisions that will cause
lessees or operators to change their business practices. The document
will not require the retrofitting of any facilities. The document may
lead to minimal changes in operating practices, but the associated
costs will be very minor.
(2) This rule will not create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency. The rule
does not affect how lessees or operators interact with other agencies.
Nor does this rule affect how MMS will interact with other agencies.
(3) This rule does not alter the budgetary effects or entitlements,
grants, user fees, or loan programs or the rights or obligations of
their recipients. The rule only addresses the maintenance inspection,
rating, repair, and alteration of pressure vessels in use on OCS
facilities.
[[Page 7402]]
(4) This rule does not raise novel legal or policy issues.
Regulatory Flexibility (RF) Act
The Department of the Interior (DOI) certifies that this rule will
not have a significant economic effect on a substantial number of small
entities under the RF Act (5 U.S.C. 601 et seq.). This rule applies to
all lessees and operators that conduct activities on the OCS. Small
lessees and operators that conduct activities under this rule would
fall under the Small Business Administration's (SBA) North American
Industry Classification System codes 211111, Crude Petroleum and
Natural Gas Extraction and 213111, Drilling Oil and Gas Wells. Under
these codes, SBA considers all companies with fewer than 500 employees
to be a small business. MMS estimates that of the 130 lessees and
operators that explore for and produce oil and gas on the OCS,
approximately 90 are small businesses (70 percent). However, because of
the extremely high cost and technical complexity involved in
exploration and development offshore, the vast majority of lessees and
operators that will be affected will be companies with larger revenues.
The API document proposed for incorporation into MMS regulations
covers pressure vessels on offshore structures. Offshore structures can
cost hundreds of millions of dollars to build and install. The document
to be incorporated by this rule has been used by the industry for many
years and the latest edition represents the current state-of-the-art
industry practices. Boilers and pressure vessels currently being built
are being constructed according to the requirements in the American
Society of Mechanical Engineers Code. Existing pressure vessel
equipment is being inspected and maintained to the requirements of API
510. Additional costs, if any, are already accepted by the industry. As
discussed above, MMS does not believe that this rule will have a
significant impact on the lessees or operators who explore for and
produce oil and gas on the OCS, including those that are classified as
small businesses.
Your comments are important. The Small Business and Agriculture
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were
established to receive comments from small businesses about Federal
agency enforcement actions. The Ombudsman will annually evaluate the
enforcement activities and rate each agency's responsiveness to small
business. If you wish to comment on the enforcement actions of MMS,
call 1-888-REG-FAIR (1-888-734-3247). You may comment to the SBA
without fear of retaliation. Disciplinary action for retaliation by an
MMS employee may include suspension or termination from employment with
the DOI.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This rule is not a major rule under 5 U.S.C. 804(2), SBREFA. This
rule:
(a) Does not have an annual effect on the economy of $100 million
or more. The proposed rule will not cause any significant costs to
lessees or operators. The only costs will be the purchase of the new
document and minor revisions to some operating and maintenance
procedures. The minor revisions to operating and maintenance procedures
may result in some minor costs.
(b) Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions. The minor increase in cost will not
change the way the oil and gas industry conducts business, nor will it
affect regional oil and gas prices. Therefore, it will not cause major
cost increases for consumers, the oil and gas industry, or any
government agencies.
(c) Does not have significant adverse effect on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises. All
lessees and operators, regardless of nationality, must comply with the
requirements of this rule. The rule will not affect competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
Paperwork Reduction Act (PRA) of 1995
There are no information collection requirements associated with
this rule. DOI has determined that this regulation does not contain
information collection requirements pursuant to PRA (44 U.S.C. 3501 et
seq.) We will not be submitting an information collection request to
OMB.
Federalism (Executive Order 13132)
According to Executive Order 13132, the rule does not have
federalism implications. This rule does not substantially and directly
affect the relationship between the Federal and State Governments. This
rule will simply add one additional document incorporated by reference
to ensure that the industry uses the best and safest technologies. This
rule does not impose costs on States or localities. Any costs will be
the responsibility of the lessees and operators.
Consultation and Coordination With Indian Tribal Governments (Executive
Order 13175)
In accordance with Executive Order 13175, this rule does not have
tribal implications that impose substantial direct compliance costs on
Indian tribal governments.
Takings Implication Assessment (TIA) (Executive Order 12630)
According to Executive Order 12630, this rule does not have
significant TIA implications. A TIA is not required. The rule revises
existing operating regulations. It does not prevent any lessee or
operator from performing operations on the OCS, providing they follow
the regulations. Thus, MMS did not need to prepare a TIA according to
Executive Order 12630, Governmental Actions and Interference with
Constitutionally Protected Property Rights.
Energy Supply, Distribution, or Use (Executive Order 13211)
The rule does not have a significant effect on energy supply,
distribution, or use because it merely adds a new standard to be
incorporated by reference that will provide for uniform maintenance and
inspection practices. Thus, a Statement of Energy Supply, Distribution,
or Use is not required.
Civil Justice Reform (Executive Order 12988)
According to Executive Order 12988, the Office of the Solicitor has
determined that this rule does not unduly burden the judicial system
and meets the requirements of Sections 3(a) and 3(b)(2) of the Order.
National Environmental Policy Act (NEPA)
This rule does not constitute a major Federal action significantly
affecting the quality of the human environment. An environmental impact
statement is not required.
Unfunded Mandates Reform Act (UMRA) of 1995
This rule does not impose an unfunded mandate on State, local, and
tribal governments or the private sector of more than $100 million per
year. The rule does not have a significant or unique effect on State,
local, or tribal governments or the private sector. A statement,
containing the information required by the UMRA (2 U.S.C. 1531 et
seq.), is not required.
List of Subjects in 30 CFR Part 250
Environmental impact statements, Environmental protection,
Government
[[Page 7403]]
contracts, Incorporation by reference, Investigations, Mineral
royalties, Oil and gas development and production, Oil and gas
exploration, Oil and gas reserves, Outer continental shelf, Penalties,
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulphur development and
production, Sulphur exploration, Surety bonds.
Dated: February 2, 2005.
Rebecca W. Watson,
Assistant Secretary--Land and Minerals Management.
0
For the reasons stated in the preamble, the Minerals Management Service
amends 30 CFR Part 250 as follows:
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
0
1. The authority citation for part 250 continues to read as follows:
Authority: 43 U.S.C. 1331 et seq.
0
2. In Sec. 250.198, in the table in paragraph (e), a new entry for
document API 510 is added in alphanumeric order to read as follows:
Sec. 250.198 Documents incorporated by reference.
* * * * *
(e) * * *
------------------------------------------------------------------------
Title of document Incorporated by reference at
------------------------------------------------------------------------
* * * * *
API 510, Pressure Vessel Inspection Sec. 250.803(b)(1).
Code: Maintenance Inspection, Sec. 250.1629(b)(1).
Rating, Repair, and Alteration,
except for Sections 6.5 and 8.5,
Eighth Edition, June 1997, API Stock
No. C51008.
------------------------------------------------------------------------
0
3. In Sec. 250.803, paragraph (b)(1) introductory text is revised to
read as follows:
Sec. 250.803 Additional production system requirements.
* * * * *
(b) * * *
(1) Pressure and fired vessels. Pressure and fired vessels must be
designed, fabricated, and code stamped in accordance with the
applicable provisions of Sections I, IV, and VIII of the American
Society of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code.
Pressure and fired vessels must have maintenance inspection, rating,
repair, and alteration performed in accordance with the applicable
provisions of the American Petroleum Institute's Pressure Vessel
Inspection Code: Maintenance Inspection, Rating, Repair, and Alteration
API 510 (except Sections 6.5 and 8.5), which is incorporated by
reference in Sec. 250.198
* * * * *
0
4. In Sec. 250.1629, paragraph (b)(1) introductory text is revised to
read as follows:
Sec. 250.1629 Additional production and fuel gas system requirements.
* * * * *
(b) * * *
(1) Pressure and fired vessels must be designed, fabricated, and
code stamped in accordance with the applicable provisions of sections
I, IV, and VIII of the American Society of Mechanical Engineers (ASME)
Boiler and Pressure Vessel Code. Pressure and fired vessels must have
maintenance inspection, rating, repair, and alteration performed in
accordance with the provisions of the American Petroleum Institute's
Pressure Vessel Inspection Code: Maintenance Inspection, Rating,
Repair, and Alteration, API 510 (except Sections 6.5 and 8.5), which is
incorporated by reference in Sec. 250.198.
* * * * *
[FR Doc. 05-2746 Filed 2-11-05; 8:45 am]
BILLING CODE 4310-MR-P