Requirements for Subsurface Safety Valve Equipment, 1276-1280 [2010-124]
Download as PDF
1276
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Rules and Regulations
List of Subjects in 21 CFR Part 558
Animal drugs, Animal feeds.
Therefore, under the Federal Food,
Drug, and Cosmetic Act and under the
authority delegated to the Commissioner
of Food and Drugs and redelegated to
the Center for Veterinary Medicine, 21
CFR part 558 is amended as follows:
■
remove ‘‘Ractopame’’ and in its place
add ‘‘Ractopamine’’; and add paragraph
(e)(2)(xi) to read as follows:
1. The authority citation for 21 CFR
part 558 continues to read as follows:
§ 558.500
■
*
2. In § 558.500, in paragraph (e)(2), in
the heading of the first table column,
■
*
*
*
*
*
Dated: December 31, 2009.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
[FR Doc. 2010–208 Filed 1–8–10; 8:45 am]
BILLING CODE 4160–01–S
DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
[Docket ID MMS–2007–OMM–0066]
RIN 1010–AD45
Requirements for Subsurface Safety
Valve Equipment
cprice-sewell on DSK2BSOYB1PROD with RULES
AGENCY: Minerals Management Service
(MMS), Interior.
ACTION: Final rule.
SUMMARY: The MMS is incorporating by
reference the Eleventh Edition of the
American Petroleum Institute’s
Specification for Subsurface Safety
Valve Equipment (API Spec 14A) into
its regulations. The MMS is
incorporating the Eleventh Edition of
API Spec 14A because it updated the
design validation and functional testing
requirements, incorporated new design
changes, and corrected ambiguous areas
open to misinterpretation. These
changes will ensure that lessees and
operators use the best available and
safest technologies while operating in
the Outer Continental Shelf. The rule
will also require that lessees and
operators provide supporting design
verification information for subsurface
safety valves intended for use in high
pressure high temperature
environments.
DATES: Effective Date: This final rule is
effective on February 10, 2010. The
VerDate Nov<24>2008
19:27 Jan 08, 2010
Jkt 220001
*
*
Frm 00008
Fmt 4700
*
*
Sfmt 4700
*
Sponsor
*
Top dress in a minimum of 1.0 lb
of medicated feed.
incorporation by reference of the
publication listed in the regulation is
approved by the Director of the Federal
Register as of February 10, 2010.
FOR FURTHER INFORMATION CONTACT:
Wilbon Rhome, Office of Offshore
Regulatory Programs, Regulations and
Standards Branch at (703) 787–1587.
SUPPLEMENTARY INFORMATION: The MMS
uses standards, specifications, and
recommended practices developed by
standard-setting organizations and the
oil and gas industry as a means of
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. The legal
effect of incorporation by reference is
that the material is treated as if the
entire document were published in the
Federal Register. This material, like any
other properly issued regulation, then
has the force and effect of law. We hold
operators/lessees accountable for
complying with the documents
incorporated by reference in our
regulations. We currently incorporate by
reference 97 private sector consensus
standards into the offshore operating
regulations. The regulations at 1 CFR
part 51 govern how we and other
Federal agencies incorporate various
documents by reference. Agencies may
only incorporate a document by
reference by publishing the document
title and affirmation/reaffirmation date
in the Federal Register. Agencies must
also gain 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, supplement, or
addendum cited in the regulations.
This rule adds the following API
document to those currently
PO 00000
*
Limitations
Cattle fed in confinement for
slaughter: As in paragraph
(e)(2)(i) of this section.
*
*
*
Ractopamine.
*
*
(e) * * *
(2) Cattle—
Indications for use
*
(xi) Not to exceed 800; to provide
70 to 400 mg/head/day.
*
*
Authority: 21 U.S.C. 360b, 371.
Combination in
grams/ton
Ractopamine in grams/ton
*
PART 558—NEW ANIMAL DRUGS FOR
USE IN ANIMAL FEEDS
*
000986
*
incorporated by reference in MMS
regulations:
ANSI/API Specification 14A,
Specification for Subsurface Safety
Valve Equipment, Eleventh Edition,
October 2005, Effective Date: May 1,
2006; also available as ISO 10432: 2004,
Product No. GX14A11.
The MMS has reviewed this
document and determined that
incorporating it into regulations ensures
that industry uses the best available and
safest technologies for downhole safety
valves.
This final rule updates the
requirements for subsurface safety
valves operating in high pressure, high
temperature (HPHT) environments in 30
CFR part 250 Subpart A—General and
Subpart H—Oil and Gas Production
Safety Systems. Subpart A is amended
to incorporate by reference ANSI/API
Specification 14A, Specification for
Subsurface Safety Valve (SSSV)
Equipment. The MMS is also adding a
new section (30 CFR 250.807) to
Subpart H that identifies additional
safety valve information requirements
for HPHT environments.
The Eleventh Edition of API Spec.
14A contains significant technological
and design changes that will increase
the safety of downhole operations in the
Outer Continental Shelf (OCS). The
updated API Spec. 14A is an
improvement over the current API Spec.
14A, Tenth Edition, incorporated in the
regulations because it does the
following:
• Strengthens the guidelines for
preparation of a functional specification
by the user/purchaser to submit to the
manufacturer/supplier when ordering
equipment addressed by this standard.
Functional characteristics in the
specification must include, but are not
limited to, well parameters, operational
parameters, environmental
E:\FR\FM\11JAR1.SGM
11JAR1
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Rules and Regulations
cprice-sewell on DSK2BSOYB1PROD with RULES
compatibility, and compatibility with
related well equipment.
• Adds new design verification and
validation guidelines.
• Clarifies procedures in areas such
as design methodology and verification.
• Introduces state-of-the-art
technological advances to improve
downhole performance.
Comments on the proposed rule: On
June 12, 2008, MMS published a rule
proposing to incorporate the Eleventh
Edition of API Spec 14A and to add a
new section to the regulations
identifying additional safety valve
information requirements for HPHT
conditions (73 FR 33333). The public
comment period ended on August 11,
2008. The MMS received only two
comments on the proposed rule; one
comment was received from Baker Oil
Tools and the other comment was
received from the Offshore Operators
Committee (OOC). You may view these
comments on MMS’s Web site at: https://
www.mms.gov/federalregister/
PublicComments/
AD45ReqSubsurfaceSafety
ValveEquip.htm.
Discussion of Comments
Comment: Baker Oil Tools (Baker)
supports MMS’s proposal to incorporate
API Spec 14A into the regulations. The
comment stated that Baker supports the
proposal to revise 30 CFR § 250.806 to
accept the Eleventh Edition of API
Spec14A (and its specified functional
test provisions) for safety valves in use
in OCS waters. Baker also supports the
proposal to require that Operators
provide new information when
submitting an Application for Permit to
Drill (APD), an Application for Permit to
Modify (APM), or a Deepwater
Operations Plan (DWOP) that
demonstrates the SSSV and related
equipment are fit-for-service for
performing in HPHT environments.
Baker believes that the current design
verification and validation activities
specified in the Eleventh Edition of API
Spec14A, which has been in effect since
May 1, 2006, have and will continue to
reasonably ensure that products are fitfor-service in all pressure and
temperature environments.
Response: The MMS fully agrees with
the comment by Baker supporting the
incorporation of API Spec 14A and the
requirement for new information that
demonstrates the SSSV is fit-for-service.
Comment: The Offshore Operators
Committee (OOC) wanted MMS to
delete or clarify HPHT condition No. 1
in § 250.807, Additional requirements
for subsurface safety valves installed in
HPHT. The OOC stated that condition
No. 1, which describes the ‘‘HPHT
VerDate Nov<24>2008
15:08 Jan 08, 2010
Jkt 220001
environment,’’ is confusing as it is
currently worded. The commenter asked
what does condition No. 1 cover that
environment condition No. 2 does not
already cover? The OOC further stated
that basing the rule on ‘‘HPHT
environment’’ (defined as the pressures
and temperatures at the wellhead
whether a surface wellhead or subsea
wellhead) is not necessarily appropriate
for the ‘‘related’’ equipment, including
the SSSV. The OOC suggested that it
will be more appropriate to define
‘‘HPHT environment’’ by the anticipated
worst case service conditions at each
piece of related equipment. When the
significant physical distance between
the related equipment and the wellhead
is combined with the anticipated fluid
gradients and temperature gradients, it
can result in conditions that push
related equipment into greater than
15,000 pounds per square inch gauge
(psig), or greater than 350 degrees
Fahrenheit—conditions in wells that
may not be considered an HPHT
environment by the current wording.
Wells/environments that will not fall
into the categorization of HPHT, as the
rule is currently drafted, could actually
need related equipment that is greater
than 15,000 psig, or 350 degrees
Fahrenheit rated working pressure. As
written, the rule could be interpreted
such that, in these applications, it will
not be necessary for operators to supply
supporting design verification for this
related equipment (greater than 15,000
psig, or 350 degrees Fahrenheit rated
working pressure equipment), unless
the pressures or temperatures at the
wellhead are deemed to be an HPHT
environment. If it is intended that
operators planning to use related
equipment greater than 15,000 psig, or
350 degrees Fahrenheit working
pressure provide design verification,
then this should be clearly conveyed.
Response: The MMS revised the
language in § 250.807 based on OOC’s
comment to add clarity and specificity
to condition No. 1 that describes the
‘‘HPHT environment.’’
Final Rule Requirements
The new § 250.807 provisions will
require the lessee or operator to provide
additional information when SSSVs and
related equipment are intended to be
installed in an HPHT environment. The
lessee or operator will be required to
include such information in an APD,
APM, or DWOP and must demonstrate
that the SSSV and related equipment are
fit-for-service for performing in HPHT
environments. For the purpose of this
rulemaking, HPHT exists in any of the
following conditions:
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
1277
1. The completion of the well requires
completion equipment or well control
equipment with a pressure rating greater
than 15,000 psig or a temperature rating
greater than 350 degrees Fahrenheit;
2. The maximum anticipated surface
pressure or shut-in tubing pressure is
greater than 15,000 psig on the seafloor
for a well with a subsea wellhead or at
the surface for a well with a surface
wellhead; or
3. The flowing temperature is equal to
or greater than 350 degrees Fahrenheit
on the seafloor for a well with a subsea
wellhead or the surface for a well with
a surface wellhead.
Related equipment refers to
wellheads, tubing heads, tubulars,
packers, threaded connections, seals,
seal assemblies, production trees,
equipment associated with coiled
tubing, snubbing, operations, chokes,
well control equipment, and any other
equipment that will be exposed to rated
working pressures greater than 15,000
psig or temperatures greater than 350
degrees Fahrenheit.
Procedural Matters
Regulatory Planning and Review
(Executive Order (E.O.) 12866)
This final rule is not a significant rule
and is not subject to review by the
Office of Management and Budget
(OMB) under E.O. 12866.
(1) The final rule will not have an
annual 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 primary purpose of
this final rule is to establish minimum
acceptable requirements for SSSVs. The
requirements apply to SSSVs, as well as
all components that establish tolerance
and/or clearances that may affect
performance or interchangeability of
SSSVs. This rule also will set minimum
requirements for SSSVs and related
equipment to conform to international
standards. Finally, this rule will
establish minimum fitness-for-service
criteria for HPHT equipment operating
over 15,000 psig or 350 degrees
Fahrenheit and will require lessees and
operators to provide information that
demonstrates to the MMS that their
SSSVs are properly designed to operate
in HPHT environments.
The oil and gas industry took the lead
in revising API Spec 14A, Eleventh
Edition. The industry and API have
encouraged the promulgation of the
final rule incorporating API Spec 14A.
The API Spec 14A standard is now
accepted as an industry standard both
E:\FR\FM\11JAR1.SGM
11JAR1
cprice-sewell on DSK2BSOYB1PROD with RULES
1278
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Rules and Regulations
domestically and internationally;
consequently, the impact of this final
rule on the oil and gas industry is
expected to be negligible.
The impact of the new requirements
of § 250.807 will also be negligible. A
review of drilling activity indicates that,
if the current trend continues, there may
not be any HPHT wells that exceed
15,000 psig at the wellhead drilled and
completed in the next 3 years. However,
there is activity in the Mobile Bay
region and in the western Gulf of
Mexico where the working environment
for SSSVs and related equipment may
reach over 350 degrees Fahrenheit,
flowing tubing temperature. The MMS
estimates that a maximum of 20 APDs
or APMs that could be subject to the
final rule may be submitted by lessees
or operators over the next 3 years. These
submittals will be required to provide
additional information on SSSVs and
related equipment for wells to be drilled
and completed that may be classified as
HPHT completions.
Section 250.807 will require lessees
and operators to provide supporting
design verification information. This is
the kind of information that a prudent
operator should have available for
operating in HPHT environments.
Companies will be required to gather
and present well data that should be
readily available if requested by MMS
for review. We estimate that the hourly
burden to produce this data will be
approximately 40 hours for each well at
an hourly rate of $100 per hour, totaling
$4,000 per well (40 hours × $100 per
hour × 1 well = $4,000).
The estimated cost to industry over
the next 3 years, based on the high
estimate of 20 APDs or APMs per year,
will be approximately $80,000 ($4,000
per well × 20 wells = $80,000). This
additional cost associated with
implementing these new requirements
will be negligible in relation to the
overall cost of offshore oil and gas
production. Additional costs could be
incurred if a lessee engages an
independent consultant to prepare the
fitness-for-service report for the
application to install SSSVs and related
equipment in an HPHT environment
with readily available information.
However, these costs are very small
when compared to the cost of drilling a
well in an HPHT environment, which
can cost over $150 million.
(2) The final rule will not create a
serious inconsistency or otherwise
interfere with action taken or planned
by another agency.
(3) This final rule will not alter the
budgetary effects of entitlements, grants,
user fees, or loan programs or the rights
or obligations of their recipients.
VerDate Nov<24>2008
15:08 Jan 08, 2010
Jkt 220001
(4) This final rule will not raise novel
legal or policy issues. The final rule
simply seeks to improve MMS safety
regulations by updating them with
improved oil and gas industry standards
and requires lessees and operators to
demonstrate that SSSVs and related
equipment are fit-for-service in HPHT
environments.
Regulatory Flexibility Act
The Department of the Interior
certifies that this final rule will not have
a significant economic effect on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.).
The new API Spec 14A will affect
lessees and operators of oil and gas
leases in the OCS. This includes
approximately 130 active Federal oil
and gas lessees. Lessees that conduct
business under this rule are coded
under the Small Business
Administration’s (SBA) North American
Industry Classification System (NAICS)
codes 211111, Crude Petroleum and
Natural Gas Extraction, and 213111,
Drilling Oil and Gas Wells. For these
NAICS code classifications, a small
company is defined as one with fewer
than 500 employees. Based on this
criterion, an estimated 70 percent of
these companies are considered small.
Therefore, this final rule will affect a
substantial number of small entities.
This final rule will not, however, have
a significant economic effect on a
substantial number of small companies
because the revised API Spec 14A will
not impose significant costs or burdens
on any lessees or operators.
With respect to the new § 250.807, the
MMS has determined that it is unlikely
that a substantial number of small
companies are currently involved with
HPHT wells in the OCS due to the
expense and the advanced technical
expertise needed for drilling,
completing, and producing HPHT wells.
Because very few, if any, small
companies will be involved in the
activities that will require compliance
with these additional requirements for
HPHT wells, the costs of the additional
requirements will not have a significant
economic effect on a substantial number
of small companies. Furthermore, as
mentioned previously, the costs of
complying with these final requirements
are very small when compared to the
cost of drilling an HPHT well, which
can cost over $150 million.
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
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
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 the MMS, call toll-free 1–888–
734–3247. You may submit comments
to the Small Business Administration
without concern for retaliation.
Allegations of discrimination/retaliation
filed with the Small Business
Administration will be investigated for
appropriate action.
Small Business Regulatory Enforcement
Fairness Act
The final rule is not a major rule
under 5 U.S.C. 804(2) of the Small
Business Regulatory Enforcement
Fairness Act. This final rule:
a. Will not have an annual effect on
the economy of $100 million or more.
The final rule will not impose any
significant costs to lessees or operators.
The main purpose of this rule is to
update an industry standard that will
ensure lessees use the best available and
safest technologies for downhole safety
valves. The costs associated with the
final rule will involve the cost of the
new document (API Spec 14A), and any
cost associated with gathering and
presenting the well data required by the
new § 250.807 to MMS. As mentioned
previously, the costs of complying with
these requirements are very small when
compared to the cost of drilling an
HPHT well, which can cost over $150
million.
b. Will not cause a major increase in
costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions.
c. Will 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.
Unfunded Mandates Reform Act of
1995
This final rule will not impose an
unfunded mandate on State, local, or
tribal governments or the private sector
of more than $100 million per year. The
final rule will 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 Unfunded Mandates
Reform Act (2 U.S.C. 1501 et seq.) is not
required.
Takings Implication Assessment (E.O.
12630)
Under the criteria in E.O. 12630, this
final rule does not have significant
takings implications. The final rule is
E:\FR\FM\11JAR1.SGM
11JAR1
1279
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Rules and Regulations
not a governmental action capable of
interference with constitutionally
protected property rights. A Takings
Implication Assessment is not required.
Federalism (E.O. 13132)
Under the criteria in E.O. 13132, this
final rule does not have federalism
implications. This final rule will 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 final rule will not
affect that role. A Federalism
Assessment is not required.
Civil Justice Reform (E.O. 12988)
This rule complies with the
requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a)
requiring that all regulations be
reviewed to eliminate errors and
ambiguity and be written to minimize
litigation; and
(b) Meets the criteria of section 3(b)(2)
requiring that all regulations be written
in clear language and contain clear legal
standards.
Consultation With Indian Tribes (E.O.
13175)
Under the criteria in E.O. 13175, we
have evaluated this final rule and
determined that it has no substantial
effects on federally recognized Indian
tribes. There are no Indian or tribal
lands in the OCS.
Paperwork Reduction Act (PRA)
The final revisions to 30 CFR 250,
subpart H regulations (§ 250.807) will
specify that lessees and operators must
submit a detailed description in their
APD, APM, or DWOP when SSSVs and
related equipment are intended to
perform in HPHT environments. The
information that will be required by the
final rule should be readily available
since a prudent operator will already
possess this information for daily
operations. Lessees and operators must
then provide this existing information
as part of their APD, APM, or DWOP
submissions. The MMS has determined
that the number of hours of paperwork
burdens currently approved for
preparation of APDs (3,135 annual
burden hours) and APMs (9,900 annual
burden hours) pursuant to the
requirements set forth in 30 CFR 250,
subpart D (OMB Control Number 1010–
0141) and for DWOPs (51,000 annual
burden hours) in 30 CFR 250, subpart B
(OMB Control Number 1010–0151), are
more than enough to accommodate this
minor addition to existing submissions.
Therefore, due to the fact that the
burden hours are effectively included
under currently approved OMB
information collections, the final rule
does not require a submission to OMB
for review and approval under section
3507(d) of the PRA (44 USC 3501 et
seq.).
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 a collection of
information and assigns a control
number, you are not required to
respond. The OMB approved the
referenced information collection
requirements for 30 CFR 250, subparts
B, D, and H under OMB Control
Numbers 1010–0151 (321,817 hours;
expiration 7/31/08), 1010–0141 (163,954
hours; expiration 8/31/08) and 1010–
0059 (17,598 hours; expiration 2/28/09).
National Environmental Policy Act of
1969
This rule does not constitute a major
Federal action significantly affecting the
quality of the human environment. The
MMS has analyzed this final rule under
the criteria of the National
Environmental Policy Act and
implementing regulations. This final
rule meets the criteria set forth in 516
Departmental Manual 15.4(C)(1) for an
MMS ‘‘Categorical Exclusion’’ in that its
impacts are limited to administrative,
economic, or technological effects.
Further, the MMS has analyzed this
final rule to determine if it involves any
of the extraordinary circumstances that
would require an environmental
assessment or an environmental impact
statement as set forth in 43 CFR § 46.215
and concluded that it does not.
Data Quality Act
In developing this rule, we did not
conduct or use a study, experiment, or
survey requiring peer review under the
Data Quality Act (Pub. L. 106–554, app.
C § 515, 114 Stat. 2763, 2763A–153–
154).
Effects on the Energy Supply (E.O.
13211)
This rule is not a significant energy
action under the definition in E.O.
13211. A Statement of Energy Effects is
not required.
List of Subjects in 30 CFR Part 250
Continental shelf, Environmental
protection, Incorporation by reference,
Public lands—mineral resources,
Reporting and recordkeeping
requirements.
Dated: December 24, 2009.
Ned Farquhar,
Acting Assistant Secretary—Land and
Minerals Management.
For the reasons stated in the preamble,
the Minerals Management Service
(MMS) amends 30 CFR part 250 as
follows:
■
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:
■
Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.
2. In § 250.198(e), revise the entry for
API Spec 14A to read as follows:
■
§ 250.198 Documents incorporated by
reference.
*
*
*
(e) * * *
*
*
cprice-sewell on DSK2BSOYB1PROD with RULES
Title of documents
Incorporated by
reference at
*
*
*
*
*
*
ANSI/API Specification 14A, Specification for Subsurface Safety Valve Equipment, Eleventh Edition, October 2005, Effective Date: May 1, 2006; also available as ISO 10432: 2004, Product No. GX14A11 .............................................................
*
*
VerDate Nov<24>2008
*
15:08 Jan 08, 2010
*
Jkt 220001
PO 00000
*
Frm 00011
Fmt 4700
*
Sfmt 4700
E:\FR\FM\11JAR1.SGM
*
11JAR1
§ 250.806(a)(3).
*
1280
Federal Register / Vol. 75, No. 6 / Monday, January 11, 2010 / Rules and Regulations
3. In § 250.806, remove the last
sentence in paragraph (a)(3), and add
two sentences in its place to read as
follows:
■
§ 250.806 Safety and pollution prevention
equipment quality assurance requirements.
(a) * * *
(3) * * * All SSSVs must meet the
technical specifications of API
Specification 14A (incorporated by
reference as specified in § 250.198).
However, SSSVs and related equipment
planned to be used in high pressure
high temperature environments must
meet the additional requirements set
forth in § 250.807.
*
*
*
*
*
■ 4. Redesignate § 250.807 as § 250.808.
■ 5. Add new § 250.807 to read as
follows:
cprice-sewell on DSK2BSOYB1PROD with RULES
§ 250.807 Additional requirements for
subsurface safety valves and related
equipment installed in high pressure high
temperature (HPHT) environments.
(a) If you plan to install SSSVs and
related equipment in an HPHT
environment, you must submit detailed
information with your Application for
Permit to Drill (APD), Application for
Permit to Modify (APM), or Deepwater
Operations Plan (DWOP) that
demonstrates the SSSVs and related
equipment are capable of performing in
the applicable HPHT environment. Your
detailed information must include the
following:
(1) A discussion of the SSSVs’ and
related equipment’s design verification
analysis;
(2) A discussion of the SSSVs’ and
related equipment’s design validation
and functional testing process and
procedures used; and
(3) An explanation of why the
analysis, process, and procedures
ensure that the SSSVs and related
equipment are fit-for-service in the
applicable HPHT environment.
(b) For this section, HPHT
environment means when one or more
of the following well conditions exist:
(1) The completion of the well
requires completion equipment or well
control equipment assigned a pressure
rating greater than 15,000 psig or a
temperature rating greater than 350
degrees Fahrenheit;
(2) The maximum anticipated surface
pressure or shut-in tubing pressure is
greater than 15,000 psig on the seafloor
for a well with a subsea wellhead or at
the surface for a well with a surface
wellhead; or
(3) The flowing temperature is equal
to or greater than 350 degrees
Fahrenheit on the seafloor for a well
VerDate Nov<24>2008
15:08 Jan 08, 2010
Jkt 220001
with a subsea wellhead or at the surface
for a well with a surface wellhead.
(c) For this section, related equipment
includes wellheads, tubing heads,
tubulars, packers, threaded connections,
seals, seal assemblies, production trees,
chokes, well control equipment, and
any other equipment that will be
exposed to the HPHT environment.
[FR Doc. 2010–124 Filed 1–8–10; 8:45 am]
BILLING CODE 4310–MR–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2010–6 and CP2010–6;
Order No. 360]
New Postal Product
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
Express Mail Contract 6 to the
Competitive Product List. This action is
consistent with changes in a recent law
governing postal operations.
Republication of the lists of market
dominant and competitive products is
also consistent with new requirements
in the law.
DATES: Effective January 11, 2010 and is
applicable beginning December 15,
2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 or
stephen.sharfman@prc.gov.
Regulatory
History, 74 FR 57537 (November 6,
2009).
I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs
SUPPLEMENTARY INFORMATION:
I. Introduction
The Postal Service seeks to add a new
product identified as Express Mail
Contract 6 to the Competitive Product
List. For the reasons discussed below,
the Commission approves the Request.
II. Background
At the end of October 2009, the Postal
Service filed a formal request and
associated supporting information
pursuant to 39 U.S.C. 3642 and 39 CFR
3020.30 et seq. to add Express Mail
Contract 6 to the Competitive Product
List.1 The Postal Service asserts that the
Express Mail Contract 6 product is a
competitive product ‘‘not of general
applicability’’ within the meaning of 39
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
U.S.C. 3632(b)(3). This Request has been
assigned Docket No. MC2010–6.
The Postal Service
contemporaneously filed a contract
related to the proposed new product
pursuant to 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5. The contract has been
assigned Docket No. CP2010–6.
In support of its Request, the Postal
Service filed the following materials: (1)
A redacted version of the Governors’
Decision authorizing certain types of
Express Mail contracts;2 (2) a redacted
version of the contract;3 (3) a requested
change in the Mail Classification
Schedule product list;4 (4) a Statement
of Supporting Justification as required
by 39 CFR 3020.32;5 (5) a certification
of compliance with 39 U.S.C. 3633(a);6
and (6) an application for non-public
treatment of the materials filed under
seal.7 The redacted version of the
contract provides that the contract is
terminable on 30 days’ notice by either
party, but could continue for 3 years
from the effective date subject to annual
price adjustments. Request, Attachment
B.
In the Statement of Supporting
Justification, Mary Prince Anderson,
Acting Manager, Sales and
Communications, Expedited Shipping,
asserts that the service to be provided
under the contract will cover its
attributable costs, make a positive
contribution to coverage of institutional
costs, and will increase contribution
toward the requisite 5.5 percent of the
Postal Service’s total institutional costs.
Request, Attachment D, at 1. W. Ashley
Lyons, Manager, Regulatory Reporting
and Cost Analysis, Finance Department,
certifies that the contract complies with
39 U.S.C. 3633(a). Id., Attachment E.
The Postal Service filed much of the
supporting materials, including the
supporting data and the unredacted
contract, under seal. The Postal Service
maintains that the contract and related
financial information, including the
customer’s name and the accompanying
analyses that provide prices, certain
terms and conditions, and financial
1 Request of the United States Postal Service to
Add Express Mail Contract 6 to Competitive
Product List and Notice of Filing (Under Seal) of
Contract and Supporting Data, October 28, 2009
(Request). On October 29, 2009, the Postal Service
filed errata to its Request. See Notice of the United
States Postal Service of Filing Errata to Request and
Notice, October 29, 2009. Accordingly, the filing of
the entire set of documents related to this Request
was not completed until October 29, 2009.
2 Attachment A to the Request, reflecting
Governors’ Decision No. 09–14, October 26, 2009.
3 Attachment B to the Request.
4 Attachment C to the Request.
5 Attachment D to the Request.
6 Attachment E to the Request.
7 Attachment F to the Request.
E:\FR\FM\11JAR1.SGM
11JAR1
Agencies
[Federal Register Volume 75, Number 6 (Monday, January 11, 2010)]
[Rules and Regulations]
[Pages 1276-1280]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-124]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
[Docket ID MMS-2007-OMM-0066]
RIN 1010-AD45
Requirements for Subsurface Safety Valve Equipment
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The MMS is incorporating by reference the Eleventh Edition of
the American Petroleum Institute's Specification for Subsurface Safety
Valve Equipment (API Spec 14A) into its regulations. The MMS is
incorporating the Eleventh Edition of API Spec 14A because it updated
the design validation and functional testing requirements, incorporated
new design changes, and corrected ambiguous areas open to
misinterpretation. These changes will ensure that lessees and operators
use the best available and safest technologies while operating in the
Outer Continental Shelf. The rule will also require that lessees and
operators provide supporting design verification information for
subsurface safety valves intended for use in high pressure high
temperature environments.
DATES: Effective Date: This final rule is effective on February 10,
2010. The incorporation by reference of the publication listed in the
regulation is approved by the Director of the Federal Register as of
February 10, 2010.
FOR FURTHER INFORMATION CONTACT: Wilbon Rhome, Office of Offshore
Regulatory Programs, Regulations and Standards Branch at (703) 787-
1587.
SUPPLEMENTARY INFORMATION: The MMS uses standards, specifications, and
recommended practices developed by standard-setting organizations and
the oil and gas industry as a means of 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. The legal effect of incorporation by
reference is that the material is treated as if the entire document
were published in the Federal Register. This material, like any other
properly issued regulation, then has the force and effect of law. We
hold operators/lessees accountable for complying with the documents
incorporated by reference in our regulations. We currently incorporate
by reference 97 private sector consensus standards into the offshore
operating regulations. The regulations at 1 CFR part 51 govern how we
and other Federal agencies incorporate various documents by reference.
Agencies may only incorporate a document by reference by publishing the
document title and affirmation/reaffirmation date in the Federal
Register. Agencies must also gain 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, supplement, or addendum cited in the regulations.
This rule adds the following API document to those currently
incorporated by reference in MMS regulations:
ANSI/API Specification 14A, Specification for Subsurface Safety
Valve Equipment, Eleventh Edition, October 2005, Effective Date: May 1,
2006; also available as ISO 10432: 2004, Product No. GX14A11.
The MMS has reviewed this document and determined that
incorporating it into regulations ensures that industry uses the best
available and safest technologies for downhole safety valves.
This final rule updates the requirements for subsurface safety
valves operating in high pressure, high temperature (HPHT) environments
in 30 CFR part 250 Subpart A--General and Subpart H--Oil and Gas
Production Safety Systems. Subpart A is amended to incorporate by
reference ANSI/API Specification 14A, Specification for Subsurface
Safety Valve (SSSV) Equipment. The MMS is also adding a new section (30
CFR 250.807) to Subpart H that identifies additional safety valve
information requirements for HPHT environments.
The Eleventh Edition of API Spec. 14A contains significant
technological and design changes that will increase the safety of
downhole operations in the Outer Continental Shelf (OCS). The updated
API Spec. 14A is an improvement over the current API Spec. 14A, Tenth
Edition, incorporated in the regulations because it does the following:
Strengthens the guidelines for preparation of a functional
specification by the user/purchaser to submit to the manufacturer/
supplier when ordering equipment addressed by this standard. Functional
characteristics in the specification must include, but are not limited
to, well parameters, operational parameters, environmental
[[Page 1277]]
compatibility, and compatibility with related well equipment.
Adds new design verification and validation guidelines.
Clarifies procedures in areas such as design methodology
and verification.
Introduces state-of-the-art technological advances to
improve downhole performance.
Comments on the proposed rule: On June 12, 2008, MMS published a
rule proposing to incorporate the Eleventh Edition of API Spec 14A and
to add a new section to the regulations identifying additional safety
valve information requirements for HPHT conditions (73 FR 33333). The
public comment period ended on August 11, 2008. The MMS received only
two comments on the proposed rule; one comment was received from Baker
Oil Tools and the other comment was received from the Offshore
Operators Committee (OOC). You may view these comments on MMS's Web
site at: http:[sol][sol]www.mms.gov/federalregister/PublicComments/
AD45ReqSubsurfaceSafetyValveEquip.htm.
Discussion of Comments
Comment: Baker Oil Tools (Baker) supports MMS's proposal to
incorporate API Spec 14A into the regulations. The comment stated that
Baker supports the proposal to revise 30 CFR Sec. 250.806 to accept
the Eleventh Edition of API Spec14A (and its specified functional test
provisions) for safety valves in use in OCS waters. Baker also supports
the proposal to require that Operators provide new information when
submitting an Application for Permit to Drill (APD), an Application for
Permit to Modify (APM), or a Deepwater Operations Plan (DWOP) that
demonstrates the SSSV and related equipment are fit-for-service for
performing in HPHT environments. Baker believes that the current design
verification and validation activities specified in the Eleventh
Edition of API Spec14A, which has been in effect since May 1, 2006,
have and will continue to reasonably ensure that products are fit-for-
service in all pressure and temperature environments.
Response: The MMS fully agrees with the comment by Baker supporting
the incorporation of API Spec 14A and the requirement for new
information that demonstrates the SSSV is fit-for-service.
Comment: The Offshore Operators Committee (OOC) wanted MMS to
delete or clarify HPHT condition No. 1 in Sec. 250.807, Additional
requirements for subsurface safety valves installed in HPHT. The OOC
stated that condition No. 1, which describes the ``HPHT environment,''
is confusing as it is currently worded. The commenter asked what does
condition No. 1 cover that environment condition No. 2 does not already
cover? The OOC further stated that basing the rule on ``HPHT
environment'' (defined as the pressures and temperatures at the
wellhead whether a surface wellhead or subsea wellhead) is not
necessarily appropriate for the ``related'' equipment, including the
SSSV. The OOC suggested that it will be more appropriate to define
``HPHT environment'' by the anticipated worst case service conditions
at each piece of related equipment. When the significant physical
distance between the related equipment and the wellhead is combined
with the anticipated fluid gradients and temperature gradients, it can
result in conditions that push related equipment into greater than
15,000 pounds per square inch gauge (psig), or greater than 350 degrees
Fahrenheit--conditions in wells that may not be considered an HPHT
environment by the current wording. Wells/environments that will not
fall into the categorization of HPHT, as the rule is currently drafted,
could actually need related equipment that is greater than 15,000 psig,
or 350 degrees Fahrenheit rated working pressure. As written, the rule
could be interpreted such that, in these applications, it will not be
necessary for operators to supply supporting design verification for
this related equipment (greater than 15,000 psig, or 350 degrees
Fahrenheit rated working pressure equipment), unless the pressures or
temperatures at the wellhead are deemed to be an HPHT environment. If
it is intended that operators planning to use related equipment greater
than 15,000 psig, or 350 degrees Fahrenheit working pressure provide
design verification, then this should be clearly conveyed.
Response: The MMS revised the language in Sec. 250.807 based on
OOC's comment to add clarity and specificity to condition No. 1 that
describes the ``HPHT environment.''
Final Rule Requirements
The new Sec. 250.807 provisions will require the lessee or
operator to provide additional information when SSSVs and related
equipment are intended to be installed in an HPHT environment. The
lessee or operator will be required to include such information in an
APD, APM, or DWOP and must demonstrate that the SSSV and related
equipment are fit-for-service for performing in HPHT environments. For
the purpose of this rulemaking, HPHT exists in any of the following
conditions:
1. The completion of the well requires completion equipment or well
control equipment with a pressure rating greater than 15,000 psig or a
temperature rating greater than 350 degrees Fahrenheit;
2. The maximum anticipated surface pressure or shut-in tubing
pressure is greater than 15,000 psig on the seafloor for a well with a
subsea wellhead or at the surface for a well with a surface wellhead;
or
3. The flowing temperature is equal to or greater than 350 degrees
Fahrenheit on the seafloor for a well with a subsea wellhead or the
surface for a well with a surface wellhead.
Related equipment refers to wellheads, tubing heads, tubulars,
packers, threaded connections, seals, seal assemblies, production
trees, equipment associated with coiled tubing, snubbing, operations,
chokes, well control equipment, and any other equipment that will be
exposed to rated working pressures greater than 15,000 psig or
temperatures greater than 350 degrees Fahrenheit.
Procedural Matters
Regulatory Planning and Review (Executive Order (E.O.) 12866)
This final rule is not a significant rule and is not subject to
review by the Office of Management and Budget (OMB) under E.O. 12866.
(1) The final rule will not have an annual 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 primary purpose of this final rule is to establish
minimum acceptable requirements for SSSVs. The requirements apply to
SSSVs, as well as all components that establish tolerance and/or
clearances that may affect performance or interchangeability of SSSVs.
This rule also will set minimum requirements for SSSVs and related
equipment to conform to international standards. Finally, this rule
will establish minimum fitness-for-service criteria for HPHT equipment
operating over 15,000 psig or 350 degrees Fahrenheit and will require
lessees and operators to provide information that demonstrates to the
MMS that their SSSVs are properly designed to operate in HPHT
environments.
The oil and gas industry took the lead in revising API Spec 14A,
Eleventh Edition. The industry and API have encouraged the promulgation
of the final rule incorporating API Spec 14A. The API Spec 14A standard
is now accepted as an industry standard both
[[Page 1278]]
domestically and internationally; consequently, the impact of this
final rule on the oil and gas industry is expected to be negligible.
The impact of the new requirements of Sec. 250.807 will also be
negligible. A review of drilling activity indicates that, if the
current trend continues, there may not be any HPHT wells that exceed
15,000 psig at the wellhead drilled and completed in the next 3 years.
However, there is activity in the Mobile Bay region and in the western
Gulf of Mexico where the working environment for SSSVs and related
equipment may reach over 350 degrees Fahrenheit, flowing tubing
temperature. The MMS estimates that a maximum of 20 APDs or APMs that
could be subject to the final rule may be submitted by lessees or
operators over the next 3 years. These submittals will be required to
provide additional information on SSSVs and related equipment for wells
to be drilled and completed that may be classified as HPHT completions.
Section 250.807 will require lessees and operators to provide
supporting design verification information. This is the kind of
information that a prudent operator should have available for operating
in HPHT environments. Companies will be required to gather and present
well data that should be readily available if requested by MMS for
review. We estimate that the hourly burden to produce this data will be
approximately 40 hours for each well at an hourly rate of $100 per
hour, totaling $4,000 per well (40 hours x $100 per hour x 1 well =
$4,000).
The estimated cost to industry over the next 3 years, based on the
high estimate of 20 APDs or APMs per year, will be approximately
$80,000 ($4,000 per well x 20 wells = $80,000). This additional cost
associated with implementing these new requirements will be negligible
in relation to the overall cost of offshore oil and gas production.
Additional costs could be incurred if a lessee engages an independent
consultant to prepare the fitness-for-service report for the
application to install SSSVs and related equipment in an HPHT
environment with readily available information. However, these costs
are very small when compared to the cost of drilling a well in an HPHT
environment, which can cost over $150 million.
(2) The final rule will not create a serious inconsistency or
otherwise interfere with action taken or planned by another agency.
(3) This final rule will not alter the budgetary effects of
entitlements, grants, user fees, or loan programs or the rights or
obligations of their recipients.
(4) This final rule will not raise novel legal or policy issues.
The final rule simply seeks to improve MMS safety regulations by
updating them with improved oil and gas industry standards and requires
lessees and operators to demonstrate that SSSVs and related equipment
are fit-for-service in HPHT environments.
Regulatory Flexibility Act
The Department of the Interior certifies that this final rule will
not have a significant economic effect on a substantial number of small
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
The new API Spec 14A will affect lessees and operators of oil and
gas leases in the OCS. This includes approximately 130 active Federal
oil and gas lessees. Lessees that conduct business under this rule are
coded under the Small Business Administration's (SBA) North American
Industry Classification System (NAICS) codes 211111, Crude Petroleum
and Natural Gas Extraction, and 213111, Drilling Oil and Gas Wells. For
these NAICS code classifications, a small company is defined as one
with fewer than 500 employees. Based on this criterion, an estimated 70
percent of these companies are considered small. Therefore, this final
rule will affect a substantial number of small entities. This final
rule will not, however, have a significant economic effect on a
substantial number of small companies because the revised API Spec 14A
will not impose significant costs or burdens on any lessees or
operators.
With respect to the new Sec. 250.807, the MMS has determined that
it is unlikely that a substantial number of small companies are
currently involved with HPHT wells in the OCS due to the expense and
the advanced technical expertise needed for drilling, completing, and
producing HPHT wells. Because very few, if any, small companies will be
involved in the activities that will require compliance with these
additional requirements for HPHT wells, the costs of the additional
requirements will not have a significant economic effect on a
substantial number of small companies. Furthermore, as mentioned
previously, the costs of complying with these final requirements are
very small when compared to the cost of drilling an HPHT well, which
can cost over $150 million.
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 enforcement actions of the MMS,
call toll-free 1-888-734-3247. You may submit comments to the Small
Business Administration without concern for retaliation. Allegations of
discrimination/retaliation filed with the Small Business Administration
will be investigated for appropriate action.
Small Business Regulatory Enforcement Fairness Act
The final rule is not a major rule under 5 U.S.C. 804(2) of the
Small Business Regulatory Enforcement Fairness Act. This final rule:
a. Will not have an annual effect on the economy of $100 million or
more. The final rule will not impose any significant costs to lessees
or operators. The main purpose of this rule is to update an industry
standard that will ensure lessees use the best available and safest
technologies for downhole safety valves. The costs associated with the
final rule will involve the cost of the new document (API Spec 14A),
and any cost associated with gathering and presenting the well data
required by the new Sec. 250.807 to MMS. As mentioned previously, the
costs of complying with these requirements are very small when compared
to the cost of drilling an HPHT well, which can cost over $150 million.
b. Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions.
c. Will 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.
Unfunded Mandates Reform Act of 1995
This final rule will not impose an unfunded mandate on State,
local, or tribal governments or the private sector of more than $100
million per year. The final rule will 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 Unfunded Mandates
Reform Act (2 U.S.C. 1501 et seq.) is not required.
Takings Implication Assessment (E.O. 12630)
Under the criteria in E.O. 12630, this final rule does not have
significant takings implications. The final rule is
[[Page 1279]]
not a governmental action capable of interference with constitutionally
protected property rights. A Takings Implication Assessment is not
required.
Federalism (E.O. 13132)
Under the criteria in E.O. 13132, this final rule does not have
federalism implications. This final rule will 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 final rule will not affect that role. A
Federalism Assessment is not required.
Civil Justice Reform (E.O. 12988)
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
Consultation With Indian Tribes (E.O. 13175)
Under the criteria in E.O. 13175, we have evaluated this final rule
and determined that it has no substantial effects on federally
recognized Indian tribes. There are no Indian or tribal lands in the
OCS.
Paperwork Reduction Act (PRA)
The final revisions to 30 CFR 250, subpart H regulations (Sec.
250.807) will specify that lessees and operators must submit a detailed
description in their APD, APM, or DWOP when SSSVs and related equipment
are intended to perform in HPHT environments. The information that will
be required by the final rule should be readily available since a
prudent operator will already possess this information for daily
operations. Lessees and operators must then provide this existing
information as part of their APD, APM, or DWOP submissions. The MMS has
determined that the number of hours of paperwork burdens currently
approved for preparation of APDs (3,135 annual burden hours) and APMs
(9,900 annual burden hours) pursuant to the requirements set forth in
30 CFR 250, subpart D (OMB Control Number 1010-0141) and for DWOPs
(51,000 annual burden hours) in 30 CFR 250, subpart B (OMB Control
Number 1010-0151), are more than enough to accommodate this minor
addition to existing submissions. Therefore, due to the fact that the
burden hours are effectively included under currently approved OMB
information collections, the final rule does not require a submission
to OMB for review and approval under section 3507(d) of the PRA (44 USC
3501 et seq.).
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 a collection of information and
assigns a control number, you are not required to respond. The OMB
approved the referenced information collection requirements for 30 CFR
250, subparts B, D, and H under OMB Control Numbers 1010-0151 (321,817
hours; expiration 7/31/08), 1010-0141 (163,954 hours; expiration 8/31/
08) and 1010-0059 (17,598 hours; expiration 2/28/09).
National Environmental Policy Act of 1969
This rule does not constitute a major Federal action significantly
affecting the quality of the human environment. The MMS has analyzed
this final rule under the criteria of the National Environmental Policy
Act and implementing regulations. This final rule meets the criteria
set forth in 516 Departmental Manual 15.4(C)(1) for an MMS
``Categorical Exclusion'' in that its impacts are limited to
administrative, economic, or technological effects. Further, the MMS
has analyzed this final rule to determine if it involves any of the
extraordinary circumstances that would require an environmental
assessment or an environmental impact statement as set forth in 43 CFR
Sec. 46.215 and concluded that it does not.
Data Quality Act
In developing this rule, we did not conduct or use a study,
experiment, or survey requiring peer review under the Data Quality Act
(Pub. L. 106-554, app. C Sec. 515, 114 Stat. 2763, 2763A-153-154).
Effects on the Energy Supply (E.O. 13211)
This rule is not a significant energy action under the definition
in E.O. 13211. A Statement of Energy Effects is not required.
List of Subjects in 30 CFR Part 250
Continental shelf, Environmental protection, Incorporation by
reference, Public lands--mineral resources, Reporting and recordkeeping
requirements.
Dated: December 24, 2009.
Ned Farquhar,
Acting Assistant Secretary--Land and Minerals Management.
0
For the reasons stated in the preamble, the Minerals Management Service
(MMS) 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: 31 U.S.C. 9701, 43 U.S.C. 1334.
0
2. In Sec. 250.198(e), revise the entry for API Spec 14A to read as
follows:
Sec. 250.198 Documents incorporated by reference.
* * * * *
(e) * * *
------------------------------------------------------------------------
Incorporated by
Title of documents reference at
------------------------------------------------------------------------
* * * * * * *
ANSI/API Specification 14A, Specification for Sec.
Subsurface Safety Valve Equipment, Eleventh 250.806(a)(3).
Edition, October 2005, Effective Date: May 1, 2006;
also available as ISO 10432: 2004, Product No.
GX14A11............................................
* * * * * * *
------------------------------------------------------------------------
[[Page 1280]]
0
3. In Sec. 250.806, remove the last sentence in paragraph (a)(3), and
add two sentences in its place to read as follows:
Sec. 250.806 Safety and pollution prevention equipment quality
assurance requirements.
(a) * * *
(3) * * * All SSSVs must meet the technical specifications of API
Specification 14A (incorporated by reference as specified in Sec.
250.198). However, SSSVs and related equipment planned to be used in
high pressure high temperature environments must meet the additional
requirements set forth in Sec. 250.807.
* * * * *
0
4. Redesignate Sec. 250.807 as Sec. 250.808.
0
5. Add new Sec. 250.807 to read as follows:
Sec. 250.807 Additional requirements for subsurface safety valves and
related equipment installed in high pressure high temperature (HPHT)
environments.
(a) If you plan to install SSSVs and related equipment in an HPHT
environment, you must submit detailed information with your Application
for Permit to Drill (APD), Application for Permit to Modify (APM), or
Deepwater Operations Plan (DWOP) that demonstrates the SSSVs and
related equipment are capable of performing in the applicable HPHT
environment. Your detailed information must include the following:
(1) A discussion of the SSSVs' and related equipment's design
verification analysis;
(2) A discussion of the SSSVs' and related equipment's design
validation and functional testing process and procedures used; and
(3) An explanation of why the analysis, process, and procedures
ensure that the SSSVs and related equipment are fit-for-service in the
applicable HPHT environment.
(b) For this section, HPHT environment means when one or more of
the following well conditions exist:
(1) The completion of the well requires completion equipment or
well control equipment assigned a pressure rating greater than 15,000
psig or a temperature rating greater than 350 degrees Fahrenheit;
(2) The maximum anticipated surface pressure or shut-in tubing
pressure is greater than 15,000 psig on the seafloor for a well with a
subsea wellhead or at the surface for a well with a surface wellhead;
or
(3) The flowing temperature is equal to or greater than 350 degrees
Fahrenheit on the seafloor for a well with a subsea wellhead or at the
surface for a well with a surface wellhead.
(c) For this section, related equipment includes wellheads, tubing
heads, tubulars, packers, threaded connections, seals, seal assemblies,
production trees, chokes, well control equipment, and any other
equipment that will be exposed to the HPHT environment.
[FR Doc. 2010-124 Filed 1-8-10; 8:45 am]
BILLING CODE 4310-MR-P