Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Pipelines and Pipeline Rights-of-Way, 56442-56512 [07-4831]

Agencies

• DEPARTMENT OF THE INTERIOR
• Minerals Management Service

[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Proposed Rules]
[Pages 56442-56512]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-4831]



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Part II





Department of the Interior





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Minerals Management Service



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30 CFR Parts 250, 253, 254, and 256



 Oil and Gas and Sulphur Operations in the Outer Continental Shelf--
Pipelines and Pipeline Rights-of-Way; Proposed Rule

Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / 
Proposed Rules

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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250, 253, 254, 256

RIN 1010-AD11


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Pipelines and Pipeline Rights-of-Way

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: This proposed rulemaking completely revises the MMS Outer 
Continental Shelf pipeline and pipeline Rights-of-Way (ROW) 
regulations, and brings them up to date with current industry practices 
and technology. The proposed rule incorporates parts of several new and 
revised industry standards into the regulations. It also incorporates 
several conditions of approval for pipelines, plus guidance from 
various Notices to Lessees and Operators (NTLs) and one Letter to 
Lessees and Operators (LTL) into one set of comprehensive pipeline 
regulations. The proposed regulations would eliminate several NTLs and 
the LTL, and have been rewritten in plain language.

DATES: Submit comments by January 31, 2008. The MMS may not fully 
consider comments received after this date. Submit comments to the 
Office of Management and Budget on the information collection burden in 
this proposed rule by November 2, 2007.

ADDRESSES: You may submit comments on the proposed rulemaking by any of 
the following methods. Please use the Regulation Identifier Number 
(RIN) 1010-AD11 as an identifier in your message. See also Public 
Availability of Comments under Procedural Matters.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions on the Web site for submitting comments.
     E-mail MMS at rules.comments@mms.gov. Use RIN 1010-AD11 in 
the subject line.
     Fax: 703-787-1546. Identify with the RIN, 1010-AD11.
     Mail or hand-carry comments to the Department of the 
Interior; Minerals Management Service; Attention: Regulations and 
Standards Branch (RSB); 381 Elden Street, MS-4024; Herndon, Virginia 
20170-4817. Please reference ``Pipelines and Pipeline Rights-of-way, 
1010-AD11'' in your comments and include your name and return address.
     Send comments on the information collection in this rule 
to: Interior Desk Officer 1010-0050, Office of Management and Budget, 
202-395-6566 (fax); e-mail: oira_docket@omb.eop.gov. Please also send 
a copy to MMS.

FOR FURTHER INFORMATION CONTACT: For comments or questions on 
procedural issues, contact Richard Ensele, Regulations and Standards 
Branch, 703-787-1583. For questions on technical issues, contact Alex 
Alvarado, Pipeline Section, Gulf of Mexico Outer Continental Shelf 
Region, 504-736-2547.

SUPPLEMENTARY INFORMATION: The proposed rule is a complete revision of 
the regulations regarding pipelines and pipeline ROWs on the Outer 
Continental Shelf (OCS). The current regulations were originally 
published on April 1, 1988; various sections have been updated, and MMS 
has issued several NTLs and one LTL to clarify the regulations and to 
provide guidance. In addition, MMS often uses ``conditions of 
approval'' when approving pipeline applications to ensure that 
pipelines are installed, operated, maintained, and repaired in a safe 
and environmentally sound manner. The proposed rule incorporates some 
of those conditions of approval, and the guidance from the following 
NTLs and LTL (these documents are available on the MMS Web site at 
https://www.mms.gov/ntls/):
     NTL No. 2007-G09, Air Emissions Information for 
Applications for Accessory Platforms to Pipeline Rights-of-way (would 
be eliminated by the proposed rule);
     NTL No. 98-09, Proposed and As-Built Pipeline Location 
Data (would be eliminated by the proposed rule);
     NTL No. 2007-G01, Shallow Hazards Requirements;
     NTL No. 2000-G20, Deepwater Chemosynthetic Communities;
     NTL No. 2002-G03, Supervisory Control and Data Acquisition 
(SCADA) Systems;
     NTL No. 2007-G20, Coastal Zone Management Program 
Requirements for OCS ROW Pipeline Applications (would be eliminated by 
the proposed rule);
     NTL No. 2004-G05, Biologically Sensitive Areas of the Gulf 
of Mexico;
     NTL No. 2005-G07, Archaeological Resource Surveys and 
Reports;
     NTL No. 2007-G14, Pipeline Risers Subject to the Platform 
Verification Program (would be eliminated by the proposed rule); and
     LTL dated April 18, 1991, Provide Clarification, 
Description, and Interpretation with Regard to Pipeline Requirements 
(would be eliminated by the proposed rule).
    One of the goals in the proposed rule is to minimize the use of 
conditions of approval and NTLs. By incorporating this information, we 
hope to eliminate most of the conditions of approval, the four NTLs as 
noted above, and the LTL listed above. The remaining five NTLs would 
remain in effect, since they apply to other operations in addition to 
pipelines. In most cases, the industry has complied with these 
conditions and followed the guidance in the NTLs for several years. 
Even though these requirements are new to the regulations, they are 
generally not new to the industry.
    Another goal of the proposed rule is to update several industry 
standards already incorporated by reference into the regulations, and 
to incorporate new standards which would give the industry more options 
in designing new pipelines.

Review of Proposed Rule

    The proposed revision of subpart J is much longer than the current 
regulations in subpart J. It is more comprehensive, clear, and 
detailed. Most of the changes are designed to enhance safety and 
protect the environment. Many of the changes are based on American 
Petroleum Institute (API), American National Standards Institute 
(ANSI), and American Society of Mechanical Engineers (ASME) recommended 
practices, as well as standard MMS and industry practices. MMS will 
discuss the more significant changes here.
    The proposed rule revises several of the definitions in Sec.  
250.105. The definitions in Sec.  250.105 that MMS proposes to revise 
appear in other subparts as well as subpart J. Terms used only in 
subpart J are defined in proposed Sec.  250.1000 if the term is used in 
more than one place in subpart J. If a term is used in only one place 
in subpart J, it is defined in place.
    The proposed rule uses standards incorporated by reference 
applicable to pipelines. In some cases, MMS decided to include only the 
applicable language from a standard in the rule, rather than 
incorporate the entire standard. In other instances, MMS incorporated 
the standard or updated the currently incorporated standard. MMS will 
address the specific standards as they appear in the proposed rule. 
Since all documents incorporated by reference are covered under 30 CFR 
250 subpart A at Sec.  250.198, MMS proposes to update this section to 
include any new or changed documents. This includes revising the 
citations listed for several currently incorporated documents to 
correspond to the proposed subpart J rulemaking. MMS also added and 
changed requirements that relate to OCS

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pipelines contained in 30 CFR parts 253, Oil Spill Financial 
Responsibility; 254, Oil Spill Response Requirements for Facilities 
Located Seaward of the Coastline; and 256, Leasing of Sulphur or Oil or 
Gas in the Outer Continental Shelf.
    MMS has divided the proposed rule into several broad subject 
categories as follows:

 General
 Applications for New Pipelines
 Pipeline Application Contents
 Pipeline Design
 Pipeline Fabrication
 Pipeline Construction
 Pipeline Risers Connected to Floating Platforms
 Pipeline Pressure Testing
 Pipeline Safety Equipment
 Pipeline Leak Detection
 Pipeline Internal Corrosion Control and Flow Assurance
 Pipeline Operations and Maintenance
 Pipeline Modifications and Repairs
 Pipeline Surveying, Monitoring, and Inspection
 Pipeline Decommissioning
 Pipeline Right-of-way (ROW) Grants
 Accessories to Right-of-way (ROW) Pipelines

    The following is an overview of each category, and a discussion of 
the significant changes and requirements.

General

    The General category covers definitions, general requirements, 
types of pipelines, jurisdiction, and a table that summarizes required 
applications, notifications, plans, and reports. The definitions used 
in this rulemaking have been discussed above. MMS considered adding a 
listing or table of acronyms after the definitions section, but decided 
against that due to the length of this proposed subpart. Would it be 
helpful to include such a listing or table?
    The proposed rule provides the basic regulations for OCS pipelines. 
There are other laws, conditions, and stipulations that apply to 
pipelines on the OCS which are not mentioned in the current 
regulations, but are addressed in this proposed rule. They include:

 OCS Lands Act (OCSLA), as amended
 National Environmental Policy Act (NEPA)
 Coastal Zone Management Act (CZMA)
 Oil Pollution Act of 1990 (OPA 90)
 Federal Water Pollution Control Act (FWPCA)
 Applicable implementing regulations
 Approved applications
 Development Operations Coordination Documents (DOCD)
 Development and Production Plans (DPP)
 Lease provisions and stipulations

    The Department of the Interior (DOI), through MMS, is one of two 
Federal agencies with jurisdiction over OCS oil and gas pipelines. The 
other is the U.S. Department of Transportation (DOT). Jurisdictional 
issues between the two agencies are addressed in this category. The 
jurisdictional criteria are based on the December 1996 Memorandum of 
Understanding (MOU) between DOI and DOT. According to the MOU, 
producer-operated pipelines are generally under DOI jurisdiction, and 
transporter-operated pipelines are generally under DOT jurisdiction. 
The MOU includes the flexibility to cover situations that do not 
correspond to its general definition of the jurisdictional boundary as 
``the point at which operating responsibility transfers from a 
producing operator to a transporting operator.'' The MOU also provides 
that DOI and DOT may, through their enforcement agencies and in 
consultation with the affected parties, agree to exceptions to the MOU 
on a facility-by-facility or area-by-area basis. Operators may also 
petition DOI and DOT for exceptions to the MOU.
    This category includes a table that summarizes the various 
applications, notifications, plans, and reports that a company must 
submit to MMS, including the timing of the submittal or notification 
and the number of copies required.

Applications for New Pipelines

    MMS approval is required to install, maintain, and operate all new 
pipelines on the OCS. This category covers the responsibilities of the 
applicant and MMS in the pipeline application process. The conditions 
under which the Secretary of the Interior may cancel approval of a 
pipeline application are also addressed.
    The proposed rule covers:
     When the Regional Supervisor (RS) may require additional 
information;
     When the RS may limit the information needed;
     When an application may be withdrawn;
     Requirements for informing impacted lessees, lease 
operators, and pipeline ROW holders; and
     Information submitted to affected States.
    MMS added a section to allow the RS to require additional 
information for those situations where conditions or features may 
warrant further scrutiny. Additionally, MMS added a section to allow 
the RS to limit the information to be submitted, if that information 
was submitted previously or is otherwise available. MMS is also 
codifying the Coastal Zone Management information requirements for 
affected States for the first time in the pipeline regulations. 
Guidance on this subject is currently contained in an NTL which would 
be eliminated by this proposed rule.
    The proposed rule documents the current process that MMS follows in 
its standard review of applications. That process is not addressed in 
the current regulations. Steps in the process include:

 Initial review
 Compliance review
 Environmental impact evaluation
 Amendments
 Approval restrictions
 Objections to coastal zone consistency certifications

Pipeline Application Contents

    The information that the applicant must supply to MMS in a pipeline 
application is spelled out, in detail, in this category. The proposed 
rule consolidates current MMS application content and application 
process requirements, with related guidance from several NTLs and one 
LTL.
    Activities for lease term pipelines must be covered in DOCDs in the 
western Gulf of Mexico (GOM), and in DPPs in the eastern GOM and in the 
Pacific and Alaska OCS Regions. The requirements for these OCS plans 
are covered in 30 CFR 250, subpart B, Plans and Information. The 
proposed rule imposes similar requirements for information on ROW 
pipeline applications that must be addressed in the DOCD and DPP 
required by subpart B for lease term pipelines. Current pipeline ROW 
regulations do not impose these requirements. They are contained as 
guidance in an NTL. As stated earlier, this proposed rulemaking would 
eliminate four NTLs and one LTL.
    Proposed Sec.  250.1016 lists other agencies and entities with 
which an applicant must coordinate, and the information required by MMS 
documenting that the coordination has taken place. Proposed Sec. Sec.  
250.1017 and 1018 provide a detailed description of the information 
required regarding the location of the proposed pipeline. In addition, 
proposed Sec. Sec.  250.1019 and 1020 provide a detailed description of 
the information required in the application regarding horizontal 
components, risers, appurtenances, and schematic flow diagrams.
    Applicants currently provide much of the information required in 
proposed Sec. Sec.  250.1022, 1023, and 1025 regarding construction, 
support, and products under the guidance of the NTLs listed earlier. 
The information requirements in proposed Sec.  250.1026 regarding

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biological and archaeological resources are also currently submitted 
under the guidance of the NTLs. The proposed rule codifies current 
procedures.
    The requirements in proposed Sec.  250.1028 regarding oil spill 
response plans, and those in proposed Sec.  250.1029 regarding oil 
spill financial responsibility for ROW pipelines, are both new to 
subpart J. However, the proposed regulations simply reference current 
requirements in 30 CFR parts 254 and 253, respectively.
    The information requirements in proposed Sec.  250.1030 regarding 
environmental impact analyses for ROW pipelines are new to the pipeline 
regulations, but are necessary for MMS to comply with NEPA.

Pipeline Design

    Section 250.1002 of the current regulations contains pipeline 
design requirements. The proposed rule expands the design requirements 
into Sec. Sec.  250.1031 through 250.1036. The proposed rule includes 
performance requirements for designing a pipeline to mitigate and 
withstand the detrimental effects of environmental factors such as 
currents, storm and ice scouring, mud slides, earthquakes, hurricanes, 
and load factors such as differential pressures, dynamic loads, 
expansion and contraction, corrosion, and hydrogen sulfide gas.
    The proposed rule includes the formula for internal design pressure 
for steel horizontal components and risers that is in the current 
regulations. However, the proposed rule allows the use of equations 
from sections 4.3.1, 4.3.1.1, or 4.3.1.2 of API Recommended Practice 
1111, Design, Construction, Operation, and Maintenance of Offshore 
Hydrocarbon Pipelines (Limit State Design) (API RP 1111), in lieu of 
the current formula. This may result in a cost savings to the pipeline 
company depending on the type of pipe required by the different 
equations. It gives the pipeline company a choice in designing the 
pipeline. In addition, the proposed rule incorporates the formulas in 
sections 4.3.2.1 and 4.3.2.2 of API RP 1111 for predicting the external 
design (collapse) pressure for steel pipe, and the formulas in sections 
4.5.4 and 4.1.6.2 of API RP 1111 for designing a catenary riser for a 
fixed structure. The proposed rule would incorporate these seven 
sections of API RP 1111 into the regulations.

Pipeline Fabrication

    MMS included new performance requirements for pipeline fabrication 
in the proposed rule. The requirements are general in nature, and cover 
quality control, design tolerances, recognized engineering practices, 
and compliance.

Pipeline Construction

    Many of the proposed requirements in this category are new to the 
regulations. These include the performance requirements in the proposed 
Sec.  250.1040, and the requirements for constructing a pipeline in or 
near a designated use area, and in or near a sensitive biological 
feature or archaeological resource. Also new in the proposed 
regulations are requirements for hazard mitigation and installing hot 
taps.
    MMS included in this proposed rule a requirement to notify the 
military when crossing established military warning and water test 
areas, and a recommendation to notify the U.S. Coast Guard (USCG) for 
the preparation of a Notice to Mariners.
    The proposed rule would require pipeline companies in the Alaska 
OCS Region (AKOCSR) and Pacific OCS Region (POCSR) to take cathodic 
protection readings on all pipelines during repairs and hot tap 
installations, not just on those pipelines that are over 20 years old. 
MMS added this requirement to ensure that the entire length of the 
pipeline remains protected from external corrosion. MMS also proposes 
requirements for protecting the coating on the horizontal component of 
the pipeline and the riser during construction, and we changed the 
requirements for protecting appurtenances and crossings so that all 
equipment must have protection or cover in water depths less than 500 
feet. The separation for pipeline crossings is changed from 18 inches 
to 12 inches. The reduction still provides adequate protection, and is 
compatible with industry standards and DOT requirements. However, MMS 
invites your specific comments on this proposed change.
    The U.S. Department of Defense (DOD) provided the requirements in 
proposed Sec.  250.1047(a) regarding military test and water test 
areas. They are currently part of the lease agreement and stipulations. 
The requirements in proposed Sec.  250.1048 regarding sensitive 
biological features and archaeological resources are taken from 
guidance contained in several of the previously listed NTLs. Pipeline 
companies have followed the guidance in these NTLs and their 
predecessors for several years.
    The proposed rule would require companies to submit construction 
reports within 45 days after completion of pipeline construction, 
instead of the current 90 days. This is a reasonable requirement with 
today's technology, and will allow for faster updating of maps.

Pipeline Risers Connected to Floating Platforms

    The proposed rule establishes a Pipeline Riser Verification Program 
for risers connected to floating platforms. The proposed rule at Sec.  
250.1052 requires that all such pipeline risers be subject to separate 
verification that necessitates the use of a Certified Verification 
Agent (CVA) specifically for the pipeline riser. This requirement would 
be in addition to the platform verification requirements in subpart I. 
MMS is proposing this requirement because pipeline risers from floating 
platforms are highly sophisticated and complicated components that 
require extensive specialized technical analysis and oversight. Also, 
riser failures could have high failure consequences, such as spills, 
explosions, fires and other major incidents. The proposed rulemaking 
would eliminate one NTL on this subject.

Pipeline Pressure Testing

    This category covers hydrostatic pressure testing and leak testing. 
The proposed rule provides a definition of a successful hydrostatic 
pressure test, including when to conduct these tests and how to report 
the results. Most of the proposed requirements are the same as the 
current regulations. However, there are some new requirements for 
pressure testing after a repair using a spool piece.
    The requirements for submitting test results are revised to include 
specific information in the report. The proposed rule lists the 
instances when a hydrostatic pressure test is required, and the 
pressure requirements for the test. MMS is also proposing specific 
requirements for leak tests. In addition, the proposed rule allows 
pretesting of a spool piece for a repair to conform to DOT regulations.

Pipeline Safety Equipment

    This category covers the required safety equipment for pipelines. 
This includes departing, incoming, crossing, and bi-directional 
pipelines and pipeline pumps. The proposed rule describes the types, 
location, and operation of the required equipment. It also addresses 
requirements for providing redundant safety devices and for dealing 
with safety equipment failure.
    This category begins with a general performance requirement. MMS 
proposes to expand the regulatory requirements for departing pipelines 
to include certain requirements currently

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imposed as conditions of approval for various permits. These 
requirements include the settings of high/low pressure sensors (PSHLs), 
and methods to determine the settings. In addition, the RS may require 
the installation of a flow safety valve (FSV) or a shutdown valve (SDV) 
on departing pipelines. These requirements are currently common 
industry safety practices.
    On new incoming, crossing, and bidirectional pipelines, the 
proposed rule requires that companies install SDVs no more than 10 feet 
from the boarding pipeline riser and in an unclassified area. On new 
crossing pipelines, the proposed rule requires installation of an FSV 
on unmanned and non-production platforms to prevent backflow. MMS 
currently imposes these requirements as conditions of approval to 
prevent spills and decrease the likelihood of explosions and fires.
    If the safety equipment fails, the proposed rule requires that the 
company shut in all pipelines immediately to ensure safety and protect 
the environment. Pipeline companies may not resume operations until the 
equipment is repaired or replaced, unless an equivalent degree of 
protection is provided.

Pipeline Leak Detection

    The proposed rule allows the RS to require leak detection systems 
if MMS determines that they are necessary. The proposed rule recommends 
the use of current technology. This includes, but is not limited to, 
computational pipeline monitoring (CPM), including supervisory control 
and data acquisition (SCADA) systems.

Pipeline Internal Corrosion Control and Flow Assurance

    This category includes new requirements to prevent internal 
pipeline corrosion and to maintain adequate flow over the life of a 
pipeline. These proposed changes are based on current industry 
practices included in API RP 1111.

Pipeline Operations and Maintenance

    Proposed Sec.  250.1079 would require the preparation of an 
operations and maintenance manual, an integrity management program, an 
emergency plan, and a personnel qualification program. MMS is proposing 
these requirements to ensure that lessees, designated lease operators, 
and pipeline ROW holders maintain OCS pipelines in accordance with 
current industry practices, and that the personnel performing the 
maintenance are capable of that task. Recent pipeline leaks in onshore 
pipelines in the United States, and other integrity issues associated 
with those pipelines, have prompted MMS to address offshore pipeline 
integrity in this proposed rule. The new requirements in Sec.  250.1079 
are performance based. At a later time, MMS may propose more 
prescriptive regulations if research indicates the need for them.
    Proposed Sec.  250.1080 would require marking pipeline segment 
numbers on the pipeline at each platform. The proposed rule would 
require marking immediately for new pipelines, but allows 6 months to 
mark existing pipelines. The proposed rule allows for the use of the 
component identifier from API RP 14C, Recommended Practice for 
Analysis, Design, Installation, and Testing of Basic Surface Safety 
Systems for Offshore Production Platforms (incorporated by reference 
into the regulations at Sec.  250.198) using the MMS-assigned pipeline 
segment number as the unique identifier. In API RP 14C, pipelines are 
identified by the codes KAA (bi-directional), KAH (departing), and KAQ 
(incoming). Under the proposed rule, the MMS-assigned pipeline segment 
number could be added to the API code (e.g., KAH-1425, where 1425 is 
the MMS-assigned pipeline segment number).
    MMS included new requirements for the preparation of an 
H2S Contingency Plan for pipelines that transport products 
containing H2S in certain concentrations. Since such plans 
are required for all other OCS operations where H2S is 
present, this proposed requirement makes the pipeline regulations 
consistent with the rest of our regulations.
    Although the requirements in proposed Sec.  250.1083 regarding 
remote operations are also new to the regulations, they are based on 
guidance from a current NTL covering operations during storms or other 
emergencies requiring evacuation.
    The specific requirements in proposed Sec.  250.1084 covering 
testing of safety equipment are new to the pipeline regulations. The 
current regulation at Sec.  250.1004(a) is a performance based 
requirement for testing safety equipment. The proposed rule would 
require testing as outlined in API RP 14C. Pipeline safety equipment is 
currently tested in accordance with the requirements in subpart H, Oil 
and Gas Production Safety Systems. This revision places the 
requirements in subpart J. Prudent companies already follow these 
procedures in testing pipeline safety equipment.
    The proposed rule includes notification and reporting requirements 
for safety equipment and pipelines removed from service. In addition, 
MMS proposes testing requirements for resuming operations on pipelines 
that have been shut in. Proposed Sec.  250.1088 would require 
suspension of pipeline operations and notification to MMS if a pipeline 
leaks. The notification requirement is based on guidance in a current 
LTL (which would be eliminated by this proposed rule), and is also 
normally a condition of approval to reactivate a pipeline. We included 
the requirements in proposed Sec.  250.1089, covering flaring gas from 
a pipeline, to be consistent with the regulations in subpart K, Oil and 
Gas Production Rates.

Pipeline Modifications and Repairs

    MMS has completely revised the regulations covering pipeline 
modifications and pipeline repairs to more closely resemble the 
requirements covering new pipelines. The information required in a 
modification application is expanded to satisfy safety and 
environmental protection requirements. MMS incorporated guidance 
currently addressed in an NTL to satisfy Coastal Zone Management Act 
(CZMA) requirements if the modification affects any States. For those 
modifications that involve the installation of a hot tap, we proposed 
requirements covering the design, location, and description of the hot 
tap. In addition, the proposed rule would require the submission of a 
modification report within 30 days of completion.
    The new information proposed for a repair application is necessary 
for safety and the protection of the environment. The proposed rule 
would require that the company submit a repair report within 30 days of 
the completion of the repair. The report must include location 
information, confirmation of the damage, confirmation that the repair 
was completed as approved, the results of pressure tests, and the 
cathodic protection measurements.
    MMS revised the requirements (proposed Sec.  250.1096) for 
repairing a pipeline with a clamp to differentiate those repairs below 
the splash zone from those in or above the splash zone. If you use a 
clamp to repair the pipeline on the horizontal component or on the 
pipeline riser below the splash zone, the proposed rule allows for the 
use of a welded clamp or a mechanical clamp. The proposed rule would 
require an application for a permanent repair in or above the splash 
zone, if you temporarily repaired the pipeline with a mechanical clamp. 
The permanent repair would require the use of a welded clamp, a spool 
piece, or other method approved by the RS.

[[Page 56446]]

Pipeline Surveying, Monitoring, and Inspection

    The proposed rule would require visual surveys of all pipeline 
routes at least monthly, and gives several methods for conducting the 
surveys. In addition, the proposed rule would require annual 
inspections of each pipeline riser in and above the splash zone, and 
inspection of the underwater portions of the riser in conjunction with 
the platform inspection requirements in 30 CFR 250, subpart I, 
Platforms and Structures. MMS included proposed requirements, currently 
in effect as guidance in an NTL, for inspecting the pipeline after a 
storm or earthquake. These proposed requirements are considered 
critical to the safe operation of pipelines.
    MMS proposes to change the deadline for reporting anode system 
inspections from March 1 to October 31 of each year, with the 
inspections to be conducted no later than September 30 of each year. 
This synchronizes MMS requirements for these reports with the timing of 
industry, since the inspections are normally conducted during the 
summer months. Pipeline companies currently either submit reports for 
inspections that they performed the previous summer, which are almost a 
year old, or they conduct the inspections when the weather is not 
ideal. By changing the reporting deadline to October 31 of each year, 
MMS ensures that the companies submit current information. The proposed 
regulation also allows the company to conduct tests at anytime and 
submit the reports within 60 days of the test, but no later than 
October 31 of each year. This provides more flexibility to the company 
in the timing of the tests.
    The ultrasonic test inspections, in-line inspections, and trawling 
tests in proposed Sec.  250.1103(d), (e), and (f) are new to the 
regulations. The RS may require these inspections and tests if specific 
conditions indicate the need for them.

Pipeline Decommissioning

    The regulations for decommissioning a pipeline are mostly 
unchanged. MMS is proposing to relocate the pipeline decommissioning 
regulations from 30 CFR 250, subpart Q, Decommissioning Activities, to 
subpart J since these regulations are unique to pipeline operations. 
This would consolidate almost all pipeline specific regulations in one 
subpart. MMS requests your specific comments on this proposal, and 
comments on whether we should adopt this approach with other subparts 
within 30 CFR 250.
    MMS added one section (proposed Sec.  250.1113) covering the 
requirements for re-commissioning a decommissioned pipeline. This 
section refers the applicant to the pipeline application process in 
proposed Sec.  250.1007.

Pipeline Right-of-Way (ROW) Grants

    This category covers the terms and conditions for holding a 
pipeline ROW grant, including when a grant is needed, who may hold a 
grant, and how to apply for a grant. It also covers:

 Bonding
 Application submittal
 MMS review
 Compliance
 Environmental review
 State consistency review
 Modification
 Cessation of operations
 Assigning a grant
 Suspensions
 Relinquishing a grant
 Terminating a grant

    Because of certain administrative similarities between pipeline ROW 
grants and OCS leases, many of the proposed changes are based on or 
derived from the regulations in 30 CFR 256, which address OCS leasing. 
Each separate ROW pipeline requires a separate ROW grant. The proposed 
financial security requirements are more detailed than in the current 
regulations. Currently, pipeline companies must furnish an area bond in 
the amount of $300,000 to hold pipeline ROW grants in an MMS OCS 
Region. The proposed rule would allow a pipeline ROW holder the option 
of choosing to cover the pipeline ROW with either a $300,000 pipeline 
ROW grant individual bond or a $1,000,000 pipeline ROW grant area bond. 
The $1,000,000 area bond will cover all pipeline ROW grants held by a 
company in one MMS OCS Region. These requirements represent an increase 
from the current bonding amount, and will more accurately reflect the 
actual liabilities in decommissioning pipelines. The new proposed 
amounts would apply to all existing and future grants. Companies would 
be required to cover existing pipeline ROW grants by these increased 
amounts within 6 months after the rule becomes effective. The Regional 
Director may also require additional security based on an evaluation of 
a company's ability to carry out present and future financial 
obligations under the pipeline ROW grant. Companies have the 
opportunity to provide MMS with written or oral arguments during the 
evaluation. These securities are required primarily to ensure that the 
U.S. Government has sufficient funds available to properly decommission 
a pipeline in the event that the pipeline company is unable or 
unwilling to do so. The proposed rule includes language giving MMS the 
ability to reduce the amount required by a bond, to deal with lapses in 
bonds, and to determine bond forfeiture.
    The service fee for a pipeline ROW grant would remain unchanged. 
The proposed rule addresses pipeline ROW grant assignments. The 
conditions for when MMS will suspend a ROW grant are spelled out more 
clearly.
    The MMS is proposing to increase the annual rental fees for 
pipeline ROW grants to reflect the current rates established for new 
rights-of-use and easement (see 30 CFR 250.160(f) and (g)) and pipeline 
accessory structures (see 30 CFR 250.1012(b)). The amount established 
by these regulations are $5.00 per acre per year for sites in water 
depths less than 200 meters and $7.50 per acre per year for sites in 
water depths 200 meters or greater. The current rental rate for 
pipeline ROW grants is $15 per mile. A pipeline ROW grant is 200 feet 
wide. Therefore, the area of a pipeline ROW grant is 24.24 acres per 
mile. At $5.00 per acre, the rental rate would be approximately $125 
per mile (actually $121.20). Since raising the rental for pipeline ROW 
grants to $125 per mile from $15 per mile is a major increase, MMS is 
proposing to raise the rental in two steps. This proposed rule would 
increase the annual rental for pipeline ROW grants to $70 per mile. MMS 
will propose the second increase to $125 per mile in a future 
rulemaking. Although this is a large increase, MMS believes the higher 
fee is a fair and reasonable amount to pay for access to Federal lands.
    The terms and conditions for holding a pipeline ROW grant remain 
unchanged with respect to the OCS Lands Act provisions requiring ROW 
pipelines to transport oil and natural gas produced in the vicinity of 
the pipeline without discrimination, and to provide open access.
    The proposed rule (Sec.  250.1131(j)) would make compliance with 
Executive Order 11246, regarding non-discrimination in employment, a 
condition for holding a pipeline ROW grant. Therefore, the requirement 
(currently Sec.  250.1015(d)) for pipeline ROW grant applicants to 
include the ``Non-discrimination in Employment'' form (YN 3341-1) with 
their applications is eliminated.
    This category also covers relinquishing a pipeline ROW grant. It

[[Page 56447]]

addresses the application requirements, rental payments, delinquent 
payments, the effective date of relinquishment, and financial 
securities. Proposed Sec.  250.1137 covers cancellation, forfeiture, 
and expiration of pipeline ROW grants. One of the grounds for 
forfeiture in this proposed rule (Sec.  250.1137(b)(2)) concerns open 
and nondiscriminatory access to shippers. The MMS recently published in 
the Federal Register a proposed rule (72 FR 17047, April 6, 2007) which 
would establish 30 CFR part 291, Open and Nondiscriminatory Movement of 
Oil and Gas as Required by the Outer Continental Shelf Lands Act. Part 
291 will be referenced in this regulation when it (part 291) becomes 
final.
    The proposed rule covers the obligations of the pipeline ROW holder 
after a pipeline ROW grant is terminated for any reason. The pipeline 
ROW holder has 1 year after the grant terminates to decommission the 
associated ROW pipeline. Current regulations require that the company 
remove the pipeline. However, the proposed rule allows for ROW 
pipelines to be decommissioned in place if the RS approves. The 
proposed rule also provides requirements for re-commissioning of 
decommissioned pipelines.

Accessories to Right-of-Way (ROW) Pipelines

    The proposed rule expands the current subpart J regulations for 
accessories to ROW pipelines. However, there are very few new 
requirements. The proposed rule clarifies that accessories to ROW 
pipelines are subject to the requirements currently contained in 30 CFR 
250, subpart H, Oil and Gas Production Safety Systems, and 30 CFR 250, 
subpart I, Platforms and Structures, just like all other OCS 
structures. It also clarifies that applications for new accessories are 
subject to Coastal Zone Management Act consistency requirements. The 
proposed rule documents the internal MMS process for approving an 
accessory application.

Appendix

    The following appendix will not appear in the Code of Federal 
Regulations. Appendix A is included in this proposed rule so we may 
solicit your comments on a proposed new form for use in reporting some 
of the information required in subpart J.

Appendix A--Department of the Interior--Form MMS 153, ``Notification of 
Pipeline Installation/Relocation/Hydrotest''

BILLING CODE 4310-MR-P

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Procedural Matters

Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

Regulatory Planning and Review (Executive Order (E.O.) 12866)

    This proposed rule is not a significant rule as determined by the 
Office of Management and Budget (OMB), and is not subject to review 
under E.O. 12866.
    (1) The proposed rule would not have an annual effect of $100 
million or more on the economy. It would 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. There will be an increase in administrative 
costs, mainly information submitted to MMS in applications, plans, 
requests, and reports. MMS estimates that this proposed rule would cost 
the industry approximately $11.8 million in administrative costs each 
year. For more detail about these costs, please see the Paperwork 
Reduction Act section in this preamble. We estimate that the current 
pipeline regulations cost the industry approximately $7 million in 
administrative costs each year. Therefore, this proposed rule increases 
the annual administrative cost to industry by $4.8 million. However, 
the industry is currently submitting most of the information which 
would be required by this proposed rule as a condition of approval for 
a pipeline or pipeline right-of-way, or as requested in the NTLs 
mentioned earlier in this preamble. In addition, we estimate that this 
proposed rule will add $10.2 million in one-time costs to industry to 
comply with the new requirements for pipeline integrity management 
plans and associated manuals. The increased rental rate for pipeline 
ROW grants would result in an additional annual cost of $1.2 million to 
the industry. See the Regulatory Flexibility Act section of this 
preamble for more information. The MMS estimates that increasing the 
area-wide pipeline ROW bond from $300,000 to $1,000,000 would result in 
an additional annual cost of $3.7 million to the industry. This 
estimate is based on 300 area-wide pipeline ROW bonds in the GOM. The 
increased amount per bond would be $700,000. The average annual cost 
per bond in the GOM is 1.75 percent of the bond amount. The average 
annual increase in pipeline ROW bonding costs would be: 300 x $700,000 
x 1.75% = $3,675,000. In summary, there would be an annual increase in 
costs to the industry of approximately $9.7 million plus a one time 
cost of $10.2 million. The overall impact would be less than $100 
million. Most of the changes in the proposed rule clarify existing 
requirements or incorporate standard practices. Most operations would 
continue without many changes. This proposed rule is designed to codify 
existing practices that MMS and industry have generally followed for 
many years.
    (2) The proposed rule would not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency.
    Both DOI and DOT have jurisdiction over OCS oil and natural gas 
pipelines. These jurisdictional boundaries are defined in the proposed 
rule.
    The DOI and DOT have a MOU dated December 10, 1996. According to 
the MOU, producer-operated pipelines are generally under DOI 
jurisdiction and transporter-operated pipelines are generally under DOT 
jurisdiction. The MOU includes the flexibility to cover situations that 
do not correspond to the general definition of the jurisdictional 
boundary as ``the point at which operating responsibility transfers 
from a producing operator to a transporting operator.'' The DOI and DOT 
may, through their enforcement agencies and in consultation with the 
affected parties, agree to exceptions to this MOU on a facility-by-
facility or area-by-area basis. Companies may also petition DOI and DOT 
for exceptions to this MOU.
    (3) The proposed rule would not alter the budgetary effects of 
entitlements, grants, user fees, or loan programs, or the rights or 
obligations of their recipients. The proposed rule does not address 
entitlements, grants, user fees, or loan programs; and therefore, can 
have no effects on such programs. The proposed rule does increase the 
rental fees paid for pipeline ROW grants by the pipeline companies.
    (4) The proposed rule would not raise novel legal or policy issues. 
Most of the requirements in the proposed rule represent established MMS 
and industry practices, and are in accordance with the provisions of 
the DOT/DOI MOU dated December 10, 1996.

Regulatory Flexibility Act (RFA)

    The Department certifies that this proposed rule would not have a 
significant economic effect on a substantial number of small entities 
under the RFA (5 U.S.C. 601 et seq.). A regulatory flexibility analysis 
is not required.
    This proposed rule applies to all lessees, designated lease 
operators, and pipeline ROW holders operating on the OCS. Lessees/
operators are classified under the Small Business Administration's 
North American Industry Classification System (NAICS) code 211111, 
Crude Petroleum and Natural Gas Extraction. Under this NAICS code, 
companies with fewer than 500 employees are considered small 
businesses. MMS estimates that 130 lessees/operators explore for and 
produce oil and gas on the OCS. Approximately 70 percent of them (91 
companies) fall into the small business category.
    A pipeline ROW holder (non-producer) is a small entity if it is a 
liquid pipeline company with fewer than 1,500 employees, or a natural 
gas pipeline company with gross annual receipts of $25 million or less. 
MMS's database indicates that there are 88 pipeline ROW holders who do 
not own an interest in any oil and gas leases on the OCS. Fifty-seven 
of these companies are either major energy companies (large oil and gas 
or pipeline transmission companies), or wholly owned subsidiaries of 
such companies. Another 13 entities were either formed by partnerships 
among major producers and transporters, or have ``arms-length'' 
contractual relationships with several major producers on the OCS for 
which they provide transportation services. It is our understanding 
that in such relationships, one of the major partners usually serves as 
the ``managing partner'' of the entity so that the entity (whether a 
partnership or a corporation) is not actually independent in the usual 
sense. The remaining 18 entities could be categorized as small 
independent pipeline companies in the sense that they provide 
transportation services for several non-major oil or gas producers. 
These companies are classified by NAICS code 213112, Support Activities 
for Oil and Gas Operations. Thus, there are 218 companies affected by 
this proposed rule, of which 109 would be considered small businesses.
    The costs of installing, operating, and maintaining pipelines on 
the OCS are high due to the operating environment, i.e., marine 
environment, water depth, distance from shore. The costs imposed by 
this proposed rule are mainly due to recordkeeping and reporting, and 
are therefore minor in comparison to the overall operation.

[[Page 56450]]

    The increase in annual rental fees for pipeline ROW grants appears 
to be substantial, going from $15 per mile to $70 per mile. The MMS 
initially intended on raising the rental to the same rate as paid by 
holders of rights-of-use and easement and operators of accessory 
structures on the OCS ($5.00 per acre per year). Increasing the rental 
to $5.00 per acre would result in an annual rental rate of 
approximately $125 per mile. This proposed rule would increase the 
annual rental for pipeline ROW grants to $70 per mile (\1/2\ of the 
increase). MMS will propose the second increase in a future rulemaking. 
This acreage is computed based on a pipeline ROW being 200 feet wide. 
Therefore, the area of a pipeline ROW grant is 24.24 acres per mile. At 
$5.00 per acre, the rental rate would be approximately $125 per mile 
(actually $121.20). The MMS estimates that there are currently 20,114 
miles of active ROW pipelines in the Gulf of Mexico comprised of 2,512 
pipeline segments. Since MMS collects rentals on fractions of a mile 
for each segment, we added a correction factor to more accurately 
represent the mileage for which pipeline ROW holders are charged for 
annual rentals. Assuming the average fraction is 0.5 mile, the 
additional mileage will be the number of segments times 0.5. Therefore, 
the total mileage for which MMS collects rental is 20,114 + 1,256 = 
21,370. At $15 per mile, the total annual rental comes to $320,550. At 
$70 per mile, the total annual rental amounts to $1,495,900. However, 
this approximately $1.2 million annual increase is spread over the 
total number of pipeline ROW holders, and it is a minor cost when 
compared to the costs of installing, operating, and maintaining ROW 
pipelines.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small business 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 actions of MMS, call 1-888-734-
3247. You may comment to the Small Business Administration 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 proposed rule is not a major rule under the SBREFA (5 U.S.C. 
804(2)). This proposed rule:
    a. Would not have an annual effect on the economy of $100 million 
or more. The proposed rule deals with OCS pipeline operations. It would 
ensure that safe and environmentally sound pipeline operations 
continue. The impacts of this proposed rule would not be economic. This 
proposed rule would not have a large impact on the costs of OCS 
pipeline operations, and would not have an impact on oil or natural gas 
prices. Oil and natural gas prices are driven more by market factors 
than by the cost of production.
    b. Would not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. This proposed rule would not 
significantly increase the cost of pipeline operations on the OCS since 
most of the requirements are established practices that industry has 
followed for years. In general, doing business on the OCS (of any kind) 
is expensive. Any new costs imposed by this proposed rule would be 
minor.
    The proposed rule would not have a large impact on the costs of OCS 
pipeline operations, and will not have an impact on oil or natural gas 
prices. Oil and natural gas prices are driven more by market factors 
than by the cost of production.
    c. Would not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises. 
Leasing on the OCS is limited to residents of the U.S. or companies 
incorporated in the U.S. This proposed rule would not change that 
requirement. The proposed rule would not interfere with competition and 
would not impact employment, investment, or productivity. The proposed 
rule encourages innovation since it allows for alternative methods of 
conducting pipeline operations.

Unfunded Mandate Reform Act (UMRA)

    This proposed rule would not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. The proposed rule would 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. There are no mandates for State, 
local, or tribal governments. This proposed rule only impacts pipeline 
companies on the OCS; it does not affect State or local governments or 
tribal lands.

Takings Implication Assessment (Executive Order 12630)

    The proposed rule is not a governmental action capable of 
interference with constitutionally protected property rights. Thus, MMS 
did not need to prepare a Takings Implication Assessment according to 
E.O. 12630, Governmental Actions and Interference with Constitutionally 
Protected Property Rights. The proposed rule revises existing pipeline 
regulations. It would not prevent any lessee, designated lease 
operator, or pipeline ROW holder from performing operations on the OCS, 
as long as they complied with the regulations.

Federalism (Executive Order 13132)

    With respect to E.O. 13132, this proposed rule would not have 
federalism implications. This proposed rule would not substantially and 
directly affect the relationship between the Federal and State 
governments. To the extent that State and local governments have a role 
in OCS activities, this proposed rule would not affect that role.
    The OCS is under Federal jurisdiction seaward from the State's 
jurisdiction. There is no overlap between State and Federal 
jurisdiction. This proposed rule applies only to areas under Federal 
jurisdiction. None of the changes in this proposed rule would affect 
areas that are controlled by the States. It would not change the way 
that the States and the Federal government interact, or the way that 
States interact with private companies.

Civil Justice Reform (Executive Order 12988)

    With respect to E.O. 12988, the Office of the Solicitor has 
determined that the proposed rule does not unduly burden the judicial 
system and meets the requirements of sections 3(a) and 3(b)(2) of the 
Order.

Paperwork Reduction Act (PRA)

    This proposed rule contains a collection of information that will 
be submitted to the Office of Management and Budget (OMB) for review 
and approval under Sec.  3507(d) of the PRA. The title of the 
collection of information for this rule is 30 CFR 250, Subpart J 
Pipelines and Pipeline Rights-of-Way (Proposed Rulemaking) (OMB Control 
Number 1010-0050, expiration 3/31/09). Respondents primarily are an 
estimated 130 Federal OCS lessees and

[[Page 56451]]

designated lease operators and 88 pipeline ROW holders. Other potential 
respondents are companies that submit letters of no objection to, or 
comments on, pipeline applications; certified verification agents 
(CVAs), independent certification agents (IVAs), or other third-party 
reviewers; and surety or other third-party guarantors. The frequency of 
response varies depending upon the requirement. Responses to this 
collection of information are mandatory or required to obtain or retain 
a benefit. MMS will protect proprietary information according to the 
Freedom of Information Act and 30 CFR 250.197, ``Data and information 
to be made available to the public or for limited inspection.''
    As discussed earlier in the preamble, the proposed rule is a 
complete revision of the current pipelines and pipeline rights-of-way 
regulations at 30 CFR 250, subpart J. It incorporates guidance from 
several NTLs and one LTL that respondents currently follow, and would 
codify various conditions that MMS imposes when approving pipeline 
applications to ensure that pipelines are installed and operated in a 
safe and environmentally sound manner. The OMB approved the information 
collection burden of the current 30 CFR 250, subpart J regulations 
under control number 1010-0050 (107,874 burden hours; and $2,369,400 
non-hour burden cost service fees). When the final revised subpart J 
regulations take effect, the information collection burden approved for 
this rulemaking will replace the collection under 1010-0050 in its 
entirety.
    A table at Sec.  250.198 lists all of the 30 CFR 250 incorporated 
documents. That table would be revised to include the new 30 CFR 250, 
subpart J, incorporated documents added or updated under this proposed 
regulation. There are also several proposed changes to 30 CFR parts 253 
and 254. However, these proposed changes do not affect the currently 
approved information collection burden of 30 CFR 250, subpart A (OMB 
Control Number 1010-0114) or 30 CFR parts 253 and 254 (OMB Control 
Numbers 1010-0106 and 1010-0091, respectively).
    The current regulations on pipeline decommissioning and associated 
information collection are located in 30 CFR 250, subpart Q. The rule 
proposes to relocate the pipeline decommissioning requirements into the 
revised 30 CFR 250, subpart J regulations. The OMB approved the 
information collection burden of the current subpart Q regulations 
under control number 1010-0142. When the new 30 CFR 250, subpart J 
final regulations take effect, the pertinent 30 CFR 250, subpart Q 
pipeline decommissioning paperwork burden (3,000 burden hours) and 
their associated non-hour cost fees ($417,000) will be removed from the 
1010-0142 collection of information.
    There is a new paragraph (g) proposed for 30 CFR 256.62 which does 
impose a new information collection requirement. The paperwork burden 
for this proposed regulation is included in the submission to OMB for 
approval of the proposed 30 CFR 250 subpart J information collection. 
When this regulation becomes final, the 30 CFR 256 paperwork burden 
would be removed from this collection of information and consolidated 
with the information collection burden for 30 CFR 256 under OMB Control 
Number 1010-0006.
    The following table provides a breakdown of the paperwork burden 
and fee estimates for this proposed rulemaking. For the current 
requirements retained in the proposed rule, we used the approved 
estimated hour burdens and the average number of annual responses where 
discernable. However, due to the vastly different structure of the 
proposed rule from current regulations, some adjustments (-4,874 hours) 
occurred. The proposed rule eliminates four currently approved 
information collection requirements in current regulations at 
Sec. Sec.  250.1000(c)(2), (4), (8); and 250.1016 for a minimal burden 
reduction (-9 hours). However, there are several new requirements in 
the proposed rule as follows:
     Most are procedures and practices that are currently being 
followed by respondents. However, their hour burdens are not 
identifiable in the OMB approval of current information collection 
estimates, and are therefore considered ``new'' information collection 
burdens (+67,293 hours).
     Although a new Form MMS-153 is proposed for notifying MMS 
of pipeline installations or relocations and hydrostatic pressure 
tests, it should be noted that the information reported on the form is 
not a new burden (0 hours).
     A proposed new section, Pipeline Risers Connected to 
Floating Platforms (Sec. Sec.  250.1053-1056) would add new burden 
requirements (+8,100 hours).
     When the rule takes effect, proposed Sec.  250.1079 will 
require an initial one-time burden (+141,700 hours) on current 
respondents to develop the operating procedures. In future years, this 
burden will be drastically reduced as only new respondents will have to 
develop their initial operating procedures. There will be a 
substantially lower ongoing burden to maintain and update the 
procedures annually (+15,260 hours).
     Current subpart J regulations have 107,874 hours approved 
by OMB. This revision to the collection requests a total of 337,884 
hours which is a burden hour net increase of 230,010 hours. The fee is 
unchanged.

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    As part of our continuing effort to reduce paperwork and respondent 
burdens, MMS invites the public and other Federal agencies to comment 
on any aspect of the reporting and recordkeeping burden. You may submit

[[Page 56461]]

your comments directly to the Office of Information and Regulatory 
Affairs, OMB. You should provide MMS with a copy of your comments so 
that we can summarize all written comments and address them in the 
final rule preamble. Refer to the ADDRESSEES section for instructions 
on submitting comments. You may obtain a copy of our submission to OMB 
to revise and extend the OMB approval for 1010-0050 by contacting the 
Bureau's Information Collection Clearance Officer at (202) 208-7744.
    The PRA provides that an agency may not conduct or sponsor a 
collection of information unless it displays a currently valid OMB 
control number. Until OMB approves this collection of information and 
assigns an OMB control number and the regulations become final, you are 
not required to respond. OMB is required to make a decision concerning 
the collection of information of this proposed regulation between 30 to 
60 days after publication of this document in the Federal Register. 
Therefore, a comment to OMB is best assured of having its full effect 
if OMB receives it by November 2, 2007. This does not affect the 
deadline for the public to comment to MMS on the proposed regulations.
    MMS specifically solicits comments on the following questions:
    (a) Is the collection of information necessary for MMS to properly 
perform its functions, and will it be useful?
    (b) Are the estimates of the burden hours of the collection 
reasonable?
    (c) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (d) Is there a way to minimize the information collection burden on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology?
    In addition, the PRA requires agencies to estimate the total annual 
reporting and recordkeeping ``non-hour cost'' burden resulting from the 
collection of information. Other than the cost recovery fees listed in 
the table above, we have not identified any other costs, and we solicit 
your comments on this item. For reporting and recordkeeping only, your 
response should split the cost estimate into two components: (a) Total 
capital and start-up cost component, and (b) annual operation, 
maintenance, and purchase of services component. Your estimates should 
consider the costs to generate, maintain, and disclose or provide the 
information. You should describe the methods you use to estimate major 
cost factors, including system and technology acquisition, expected 
useful life of capital equipment, discount rate(s), and the period over 
which you incur costs. Generally, your estimates should not include 
equipment or services purchased:
    (1) Before October 1, 1995;
    (2) To comply with requirements not associated with the information 
collection;
    (3) For reasons other than to provide information or keep records 
for the Government; or
    (4) As part of customary and usual business or private practices.

National Environmental Policy Act (NEPA) of 1969

    The MMS has determined that this proposed rule is categorically 
excluded under 516 Department Manual Chapter 2, Appendix 1, 1.10, which 
covers ``Policies, directives, regulations, and guidelines that are of 
an administrative, financial, legal, technical, or procedural nature 
and whose environmental effects are too broad, speculative, or 
conjectural to lend themselves to meaningful analysis and will later be 
subject to the NEPA process, either collectively or case-by-case.
    This proposed rule would revise MMS's regulations at 30 CFR parts 
250, 253, 254, and 256 and brings them up-to-date with current industry 
practices and technology. It also incorporates several conditions of 
approval for pipelines, plus guidance from various Notices to Lessees 
and Operators and one Letter to Lessees and Operators into one set of 
comprehensive pipeline regulations. The proposed regulations also have 
been written in plain language.
    The changes to be implemented by this proposed rule are 
administrative, technical, and procedural in nature. The environmental 
effects of the proposed changes are either indirect (e.g., revised 
monitoring and reporting requirements), or too broad and speculative to 
lend themselves to a meaningful NEPA analysis. Individual pipelines and 
pipeline rights-of-way approved and regulated under this proposed rule 
will be subjected to the NEPA process. In addition, this proposed rule 
does not involve extraordinary circumstances as outlined in 516 DM 2, 
Appendix 2 that would trigger further NEPA analysis.

Energy Supply, Distribution, or Use (Executive Order 13211)

    Executive Order 13211 requires the agency to prepare a Statement of 
Energy Effects when it takes a regulatory action that is identified as 
a significant en