Annular Casing Pressure Management for Offshore Wells, 23582-23587 [2010-10291]

Download as PDF 23582 Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Rules and Regulations Issued in Fort Worth, Texas, on April 23, 2010. Anthony D. Roetzel, Manager, Operations Support Group, ATO Central Service Center. BILLING CODE 4910–13–P 21, 2010, applicants shall comply with the net worth requirements set forth in paragraphs (n)(2)(iii) of this section.’’ is corrected to read ‘‘Effective on May 20, 2010, applicants shall comply with the net worth requirements set forth in paragraph (n)(2)(iii) of this section.’’ DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Dated: April 29, 2010. Camille E. Acevedo, Associate General Counsel for Legislation and Regulations. [FR Doc. 2010–10325 Filed 5–3–10; 8:45 am] [FR Doc. 2010–10424 Filed 5–3–10; 8:45 am] 24 CFR Part 202 BILLING CODE 4210–67–P [Docket No. FR 5356–C–03] RIN 2502–AI81 DEPARTMENT OF THE INTERIOR Federal Housing Administration: Continuation of FHA Reform— Strengthening Risk Management Through Responsible FHA-Approved Lenders; Correction Minerals Management Service AGENCY: WReier-Aviles on DSKGBLS3C1PROD with RULES Annular Casing Pressure Management for Offshore Wells Final rule; correction. SUMMARY: HUD is correcting a final rule that appeared in the Federal Register of April 20, 2010 (75 FR 20718). This final rule adopted changes pertaining to the approval of mortgage lenders by the Federal Housing Administration (FHA) that are designed to strengthen FHA by improving its management of risk. Although the preamble to the final rule correctly provides that the revised net worth requirements will take effect for applicants to the FHA programs on May 20, 2010, the corresponding regulatory text incorrectly provides that the requirements will take effect on June 21, 2010. This document makes the necessary correction. DATES: Effective Date: May 20, 2010. FOR FURTHER INFORMATION CONTACT: Camille E. Acevedo, Associate General Counsel for Legislation and Regulations, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street, SW., Room 10276, Washington, DC 20410–8000; telephone number 202–708–1793 (this is not a tollfree number). Persons with hearing or speech impairments may access this number through TTY by calling the tollfree Federal Information Relay Service at 800–877–8339. SUPPLEMENTARY INFORMATION: In FR Doc. 2010–8837 appearing on page 20718 in the Federal Register of Tuesday, April 20, 2010, the following correction is made: § 202.5 [Corrected] 1. On page 20733, in the third column, in § 202.5 General approval standards, in paragraph (n)(2)(i), ‘‘Effective on June ■ VerDate Mar<15>2010 14:28 May 03, 2010 Jkt 220001 [Docket ID: MMS–2007–OMM–0068] RIN 1010–AD47 Office of General Counsel, HUD. ACTION: 30 CFR Part 250 AGENCY: Minerals Management Service (MMS), Interior. ACTION: Final rule. SUMMARY: This final rule will establish regulations to address sustained casing pressure in oil and gas wells completed in the Outer Continental Shelf. Sustained casing pressure is a problem that, if left untreated, could cause serious harm to human life and the environment. The final rule will establish criteria for monitoring and testing of wells with sustained casing pressure, and will also incorporate the American Petroleum Institute’s Recommended Practice for managing annular casing pressure. New regulations are needed because the current regulations do not adequately address the requirements for wells that have sustained casing pressure. This rule will promote human safety and environmental protection, and require Outer Continental Shelf lessees to follow best industry practices for wells with sustained casing pressure. DATES: Effective Date: This rule becomes effective on June 3, 2010. The incorporation by reference of the publication listed in the regulation is approved by the Director of the Federal Register as of June 3, 2010. FOR FURTHER INFORMATION CONTACT: For comments or questions on procedural issues, contact Kirk Malstrom, Office of Offshore Regulatory Programs, Regulations and Standards Branch, 703– 787–1751. For questions on technical issues, contact Russell Hoshman, Technical Assessment and Operations PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 Support Section, Gulf of Mexico Outer Continental Shelf Region, 504–736– 2627. SUPPLEMENTARY INFORMATION: On July 31, 2009, MMS published the proposed rule Annular Casing Pressure Management for Offshore Wells (74 FR 38147). The comment period for the proposed rule was open for 60 days. During the comment period, MMS received three comments. Two comments were in favor of this rule and the remaining comment was not associated with this rulemaking. There are no changes between the proposed and final rule language. There are also no changes to the procedural matters discussion regarding information collection requirements, cost estimates, benefits, or impacts to small entities. Public Comments: The MMS received three comments on the proposed rule 1010–AD47 Annular Casing Pressure Management for Offshore Wells. The comments received are summarized as follows: • British Petroleum (BP)—BP, a large oil and gas company, expressed the importance of this rule and how they have been involved with MMS and industry to develop the industry standard. • Offshore Operators Committee (OOC)—OOC, a large oil and gas industry organization, stated their support of this rulemaking and their involvement with the industry standard. • Private citizen—This comment is not associated with this rulemaking. The two applicable comments received on the proposed rule are fully supportive of this rulemaking. Background: Sustained casing pressure (SCP) is pressure between the casing and the well’s tubing, or between strings of casing, that rebuilds after being bled down. The SCP represents an ongoing safety hazard and can cause serious or immediate harm or damage to human life, the marine and coastal environment, and property. The oil and gas industry in the Gulf of Mexico (GOM) has suffered serious accidents as a result of high SCP, and the lack of proper control and monitoring of these pressures. With over 8,000 affected wells in the GOM with SCP in at least one annulus, immediate elimination of all SCP has proved to be impractical and exceedingly costly. The MMS has sought to identify and eliminate SCP in cases that represent a clear hazard to the safety of personnel or the environment, and establish a monitoring system for the rest, all the while working towards elimination of the problem. The MMS is currently addressing the issue of casing pressure in a 1994 Letter E:\FR\FM\04MYR1.SGM 04MYR1 Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Rules and Regulations to Lessees (LTL) and a 2009 Notice to Lessees (NTL), 2009 G–22, August 3, 2009. Once the final rulemaking becomes effective, both the 1994 LTL and the 2009 NTL on casing pressure will be rescinded. Included in this final rule is the incorporation of a jointly developed industry standard that addresses management of casing pressure. The American Petroleum Institute (API), industry, and MMS have worked collectively to produce API Recommended Practice (RP) 90. As explained in API RP 90, Section 3, Annular Casing Pressure Management Program, this RP is based on establishing an annular casing pressure management program that filters out non-problematic wells that present an acceptable level of risk, thus allowing for a more focused effort on wells that are problematic. The management program, as outlined in API RP 90, includes monitoring, diagnostic testing, determining maximum allowable wellhead operating pressure (MAWOP) for each annulus, documentation, and risk assessment considerations. For further background information on this rulemaking, refer to the published proposed rule 1010–AD47 Annular Casing Pressure Management for Offshore Wells (74 FR 38147, July 31, 2009). Procedural Matters WReier-Aviles on DSKGBLS3C1PROD with RULES Regulatory Planning and Review (Executive Order (E.O.) 12866) This final 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) This 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. There will be some costs associated with this rulemaking, mostly for diagnostic testing, MAWOP calculations, and reporting to MMS. Taking into account paperwork burden requirements, diagnostic testing, and MAWOP calculations, the costs associated with this rulemaking will be approximately $5 million industrywide. The final rule will not require any new equipment to be installed and diagnostic testing is currently being done throughout industry and is not new. (2) This final rule will not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency. VerDate Mar<15>2010 14:28 May 03, 2010 Jkt 220001 (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. The changes in the final rule are strictly planning requirements for management of annular casing pressure in offshore wells. (4) This final rule will not raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in E.O. 12866. 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.). This rulemaking will affect lessees and operators of leases and pipeline right-of-way holders in the OCS. This could include about 130 active Federal oil and gas lessees. Small entities that operate under this rule are coded under the Small Business Administration’s 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 one with fewer than 500 employees. Based on these criteria, an estimated 70 percent (91) of these companies are considered small. This final rule, therefore, will affect a substantial number of small entities. This rule will affect every well in the OCS, and every operator both large and small will have the same criteria per well regardless of company size. Nonetheless, this rulemaking will not have a significant economic effect on a substantial number of small entities because management of annular casing pressure will be a moderate cost, mostly attributable to diagnostic testing. Taking into account recordkeeping, diagnostic testing, and MAWOP calculations, the costs associated with this rulemaking will be approximately $5 million industry-wide. In comparison, to remediate the approximate 8,000 wells with SCP (approximately $250,000 per well) would cost approximately $2 billion. The costs that are associated with this rulemaking will be minor when compared to SCP remediation costs and will not impede a company of any size. Your comments are important. The Small Business and Agriculture Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments from small businesses about Federal agency enforcement actions. The Ombudsman will annually evaluate the enforcement PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 23583 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. Allegations of discrimination/retaliation filed with the Small Business Administration will be investigated for appropriate action. Small Business Regulatory Enforcement Fairness Act This final rule is not a major rule under the Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 801 et seq.). This final rule: a. Will not have an annual effect on the economy of $100 million or more. 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 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: E:\FR\FM\04MYR1.SGM 04MYR1 23584 Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Rules and Regulations 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 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 nor tribally owned businesses subject to the regulation. Paperwork Reduction Act (PRA) The final rule contains no new reporting or recordkeeping requirements, and an Office of Management and Budget (OMB) submission under the PRA (44 U.S.C. 3501 et seq.) is not required. 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 final regulations will replace the references to LTLs and NTLs with specific cites to the Code of Federal Regulations. The final rulemaking refers to, but does not change, information collection requirements under approved OMB Control Number 1010–0067 (18,756 hours, expiration 12/31/2010). National Environmental Policy Act This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 is not required because we reached a Finding of No Significant Impact. A copy of the Environmental Assessment can be viewed at http://www.Regulations.gov. (type in ‘‘environmental assessment’’ for the document type and use the keyword/ID ‘‘MMS–2007–OMM–0068.’’) 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 section 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 Administrative practice and procedure, Continental shelf, Environmental protection, Incorporation by reference, Oil and gas exploration, and Reporting and recordkeeping requirements. Dated: April 2, 2010. Ned Farquhar, Assistant Secretary—Land and Minerals Management. For the reasons stated in the preamble, the Minerals Management Service (MMS) is amending 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. Amend § 250.198 by adding paragraph (h)(78) to read as follows: ■ § 250.198 Documents incorporated by reference. * * * * * (h) * * * (78) API RP 90, Annular Casing Pressure Management for Offshore Wells, First Edition, August 2006, Product No. G09001, incorporated by reference at § 250.518. * * * * * ■ 3. Revise § 250.517(c) to read as follows: § 250.517 Tubing and wellhead equipment. * * * * * (c) When the tree is installed, you must equip wells to monitor for casing pressure according to the following chart: If you have * * * you must equip * * * so you can monitor * * * (1) fixed platform wells, ................... (2) subsea wells, ............................. (3) hybrid* wells, ............................. the wellhead, ................................. the tubing head, ............................. the surface wellhead, .................... all annuli (A, B, C, D, etc., annuli). the production casing annulus (A annulus). all annuli at the surface (A and B riser annuli). If the production casing below the mudline and the production casing riser above the mudline are pressure isolated from each other, provisions must be made to monitor the production casing below the mudline for casing pressure. * Characterized as a well drilled with a subsea wellhead and completed with a surface casing head, a surface tubing head, a surface tubing hanger, and a surface christmas tree. * * * * * 4. Add an undesignated center heading and new §§ 250.518 through 250.530 to Subpart E—Oil and Gas Well-Completion Operations to read as follows: * * * * * WReier-Aviles on DSKGBLS3C1PROD with RULES ■ Casing Pressure Management Sec. 250.518 What are the requirements for casing pressure management? 250.519 How often do I have to monitor for casing pressure? 250.520 When do I have to perform a casing diagnostic test? VerDate Mar<15>2010 14:28 May 03, 2010 Jkt 220001 250.521 How do I manage the thermal effects caused by initial production on a newly completed or recompleted well? 250.522 When do I have to repeat casing diagnostic testing? 250.523 How long do I keep records of casing pressure and diagnostic tests? 250.524 When am I required to take action from my casing diagnostic test? 250.525 What do I submit if my casing diagnostic test requires action? 250.526 What must I include in my notification of corrective action? 250.527 What must I include in my casing pressure request? 250.528 What are the terms of my casing pressure request? PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 250.529 What if my casing pressure request is denied? 250.530 When does my casing pressure request become invalid? § 250.518 What are the requirements for casing pressure management? Once you install your wellhead, you must meet the casing pressure management requirements of API RP 90 (incorporated by reference as specified in § 250.198) and the requirements of §§ 250.519 through 250.530. If there is a conflict between API RP 90 and the casing pressure requirements of this E:\FR\FM\04MYR1.SGM 04MYR1 Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Rules and Regulations 23585 § 250.519 How often do I have to monitor for casing pressure? subpart, you must follow the requirements of this subpart. You must monitor for casing pressure in your well according to the following table: If you have * * * you must monitor * * * with a minimum one pressure data point recorded per * * * (a) fixed platform wells, ................... (b) subsea wells, ............................. (c) hybrid wells, ............................... (d) wells operating under a casing pressure request on a manned fixed platform, (e) wells operating under a casing pressure request on an unmanned fixed platform, monthly, ......................................... continuously, .................................. continuously, .................................. daily, .............................................. month for each casing. day for the production casing. day for each riser and/or the production casing. day for each casing. weekly, ........................................... week for each casing. § 250.520 When do I have to perform a casing diagnostic test? observing or imposing casing pressure according to the following table: (a) You must perform a casing diagnostic test within 30 days after first If you have a * * * you must perform a casing diagnostic test if * * * (1) fixed platform well, .................... (2) subsea well, ............................... the casing pressure is greater than 100 psig. the measurable casing pressure is greater than the external hydrostatic pressure plus 100 psig measured at the subsea wellhead. a riser or the production casing pressure is greater than 100 psig measured at the surface. (3) hybrid well, ................................ (b) You are exempt from performing a diagnostic pressure test for the production casing on a well operating under active gas lift. § 250.521 How do I manage the thermal effects caused by initial production on a newly completed or recompleted well? A newly completed or recompleted well often has thermal casing pressure during initial startup. Bleeding casing pressure during the startup process is considered a normal and necessary operation to manage thermal casing pressure; therefore, you do not need to evaluate these operations as a casing diagnostic test. After 30 days of continuous production, the initial production startup operation is complete and you must perform casing diagnostic testing as required in §§ 250.520 and 250.522. § 250.522 When do I have to repeat casing diagnostic testing? Casing diagnostic testing must be repeated according to the following table: When * * * you must repeat diagnostic testing * * * (a) your casing pressure request approved term has expired, ................ (b) your well, previously on gas lift, has been shut-in or returned to flowing status without gas lift for more than 180 days, immediately. immediately on the production casing (A annulus). The production casing (A annulus) of wells on active gas lift are exempt from diagnostic testing. within 30 days. within 30 days. WReier-Aviles on DSKGBLS3C1PROD with RULES (c) your casing pressure request becomes invalid, ................................. (d) a casing or riser has an increase in pressure greater than 200 psig over the previous casing diagnostic test, (e) after any corrective action has been taken to remediate undesirable casing pressure, either as a result of a casing pressure request denial or any other action, (f) your fixed platform well production casing (A annulus) has pressure exceeding 10 percent of its minimum internal yield pressure (MIYP), except for production casings on active gas lift, (g) your fixed platform well’s outer casing (B, C, D, etc., annuli) has a pressure exceeding 20 percent of its MIYP, within 30 days. once per year, not to exceed 12 months between tests. once every 5 years, at a minimum. § 250.523 How long do I keep records of casing pressure and diagnostic tests? at the field office nearest the well until the well is abandoned. Records of casing pressure and diagnostic tests must be kept at the field office nearest the well for a minimum of 2 years. The last casing diagnostic test for each casing or riser must be retained § 250.524 When am I required to take action from my casing diagnostic test? VerDate Mar<15>2010 14:28 May 03, 2010 Jkt 220001 You must take action if you have any of the following conditions: PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 (a) Any fixed platform well with a casing pressure exceeding its maximum allowable wellhead operating pressure (MAWOP); (b) Any fixed platform well with a casing pressure that is greater than 100 psig and that cannot bleed to 0 psig E:\FR\FM\04MYR1.SGM 04MYR1 23586 Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Rules and Regulations through a 1⁄2-inch needle valve within 24 hours, or is not bled to 0 psig during a casing diagnostic test; (c) Any well that has demonstrated tubing/casing, tubing/riser, casing/ casing, riser/casing, or riser/riser communication; (d) Any well that has sustained casing pressure (SCP) and is bled down to prevent it from exceeding its MAWOP, except during initial startup operations described in § 250.521; (e) Any hybrid well with casing or riser pressure exceeding 100 psig; or (f) Any subsea well with a casing pressure 100 psig greater than the external hydrostatic pressure at the subsea wellhead. § 250.525 What do I submit if my casing diagnostic test requires action? Within 14 days after you perform a casing diagnostic test requiring action under § 250.524: You must submit either: to the appropriate: and it must include: You must also: (a) a notification of corrective action; or, District Manager and copy the Regional Supervisor, Field Operations, requirements under § 250.526 ...... submit an Application for Permit to Modify or Corrective Action Plan within 30 days of the diagnostic test. (b) a casing pressure request, ....... Regional Supervisor, Field Operations, requirements under § 250.527. § 250.526 What must I include in my notification of corrective action? The following information must be included in the notification of corrective (a) Lessee or Operator name; (b) Area name and OCS block number; (c) Well name and API number; and (d) Casing diagnostic test data. WReier-Aviles on DSKGBLS3C1PROD with RULES § 250.527 What must I include in my casing pressure request? The following information must be included in the casing pressure request: (a) API number; (b) Lease number; (c) Area name and OCS block number; (d) Well number; (e) Company name and mailing address; (f) All casing, riser, and tubing sizes, weights, grades, and MIYP; (g) All casing/riser calculated MAWOPs; (h) All casing/riser pre-bleed down pressures; (i) Shut-in tubing pressure; (j) Flowing tubing pressure; (k) Date and the calculated daily production rate during last well test (oil, gas, basic sediment, and water); (l) Well status (shut-in, temporarily abandoned, producing, injecting, or gas lift); (m) Well type (dry tree, hybrid, or subsea); (n) Date of diagnostic test; (o) Well schematic; (p) Water depth; (q) Volumes and types of fluid bled from each casing or riser evaluated; (r) Type of diagnostic test performed: (1) Bleed down/buildup test; (2) Shut-in the well and monitor the pressure drop test; (3) Constant production rate and decrease the annular pressure test; (4) Constant production rate and increase the annular pressure test; (5) Change the production rate and monitor the casing pressure test; and (6) Casing pressure and tubing pressure history plot; (s) The casing diagnostic test data for all casing exceeding 100 psig; (t) Associated shoe strengths for casing shoes exposed to annular fluids; (u) Concentration of any H2S that may be present; (v) Whether the structure on which the well is located is manned or unmanned; (w) Additional comments; and (x) Request date. § 250.528 What are the terms of my casing pressure request? Casing pressure requests are approved by the Regional Supervisor, Field Operations, for a term to be determined by the Regional Supervisor on a case-bycase basis. The Regional Supervisor may impose additional restrictions or requirements to allow continued operation of the well. § 250.529 What if my casing pressure request is denied? (a) If your casing pressure request is denied, then the operating company must submit plans for corrective action to the respective District Manager within 30 days of receiving the denial. The District Manager will establish a specific time period in which this corrective action will be taken. You must notify the respective District Manager within 30 days after completion of your corrected action. (b) You must submit the casing diagnostic test data to the appropriate Regional Supervisor, Field Operations, within 14 days of completion of the diagnostic test required under § 250.522(e). § 250.530 When does my casing pressure request approval become invalid? A casing pressure request becomes invalid when: (a) The casing or riser pressure increases by 200 psig over the approved casing pressure request pressure; (b) The approved term ends; (c) The well is worked-over, sidetracked, redrilled, recompleted, or acid stimulated; (d) A different casing or riser on the same well requires a casing pressure request; or (e) A well has more than one casing operating under a casing pressure request and one of the casing pressure requests become invalid, then all casing pressure requests for that well become invalid. ■ 5. Revise § 250.617(c) to read as follows: § 250.617 Tubing and wellhead equipment. * * * * * (c) When reinstalling the tree, you must: (1) Equip wells to monitor for casing pressure according to the following chart: If you have * * * you must equip * * * so you can monitor * * * (i) fixed platform wells, .................... (ii) subsea wells, ............................. the wellhead, ................................. the tubing head, ............................. all annuli (A, B, C, D, etc., annuli). the production casing annulus (A annulus). VerDate Mar<15>2010 14:28 May 03, 2010 Jkt 220001 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:\FR\FM\04MYR1.SGM 04MYR1 Federal Register / Vol. 75, No. 85 / Tuesday, May 4, 2010 / Rules and Regulations 23587 If you have * * * you must equip * * * so you can monitor * * * (iii) hybrid* wells, ............................. the surface wellhead, .................... all annuli at the surface (A and B riser annuli). If the production casing below the mudline and the production casing riser above the mudline are pressure isolated from each other, provisions must be made to monitor the production casing below the mudline for casing pressure. *Characterized as a well drilled with a subsea wellhead and completed with a surface casing head, a surface tubing head, a surface tubing hanger, and a surface christmas tree. (2) Follow the casing pressure management requirements in subpart E of this part. * * * * * [FR Doc. 2010–10291 Filed 5–3–10; 8:45 am] BILLING CODE 4310–MR–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 100 [Docket No. USCG–2010–0346] Annual Seattle Yacht Club’s ‘‘Opening Day’’ Marine Parade Coast Guard, DHS. Notice of enforcement of regulation. AGENCY: WReier-Aviles on DSKGBLS3C1PROD with RULES ACTION: SUMMARY: The Coast Guard will enforce the Special Local Regulation in Portage Bay, Portage Cut (Montlake Cut), and Union Bay, WA during the Annual Seattle Yacht Club’s ‘‘Opening Day’’ Marine Parade from 8 a.m. through 6 p.m. on May 2, 2010. This action is necessary to ensure participant and spectator safety while preventing vessel congestion in these waterways during the parade. During the enforcement period, no spectators shall anchor, block, loiter in, or impede the transit of participants or official patrol vessels in the regulated area. Further, due to the large number of craft confined within this small body of water, all vessels, both spectator and participants will maintain a ‘‘NO WAKE’’ speed. DATES: The regulations in 33 CFR 100.1304 will be enforced from 8 a.m. through 6 p.m. on May 2, 2010. FOR FURTHER INFORMATION CONTACT: If you have questions on this notice, call or e-mail Ensign Ashley M. Wanzer, Sector Seattle Waterways Management Division, Coast Guard; telephone 206– 217–6175, e-mail SectorSeattleWWM@uscg.mil. The Coast Guard will enforce the Special Local Regulation for the annual Seattle Yacht Club’s ‘‘Opening Day’’ Marine Parade in 33 CFR 100.1304 on May 2, 2010, from SUPPLEMENTARY INFORMATION: VerDate Mar<15>2010 14:28 May 03, 2010 Jkt 220001 8 a.m. to 6 p.m. These regulations can be found in the May 4, 1989 issue of the Federal Register (54 FR 19167). Under the provisions of 33 CFR 100.1304, the regulated area shall be closed for the duration of the event to all vessel traffic not participating in the event and authorized by the event sponsor or Coast Guard Patrol Commander. All persons or vessels not registered with the sponsor as participants or not part of the regatta patrol are considered spectators. Spectator vessels must be at anchor within a designated spectator area or moored to a waterfront facility in a way that will not interfere with the progress of the event. The following are established as spectator areas: Northwest of the University Bridge, north of the log boom which will be placed in Union Bay, and east of Webster Point. No spectators shall anchor, block, loiter in, or impede the through transit of participants or official patrol vessels in the regulated area during the effective dates and times unless cleared for such entry by the Patrol Commander. Due to the large number of craft confined within this small body of water, all vessels, both spectator and participants, will maintain a ‘‘NO WAKE’’ speed. This requirement will be strictly enforced to preserve the safety of both life and property. The Coast Guard may be assisted by other Federal, State, or local law enforcement agencies in enforcing this regulation. This notice is issued under authority of 33 CFR 100.1304 and 5 U.S.C. 552(a). If the Captain of the Port determines that the regulated area need not be enforced for the full duration stated in this notice, she may use a Broadcast Notice to Mariners to grant general permission to enter the regulated area. Dated: April 6, 2010. Suzanne E. Englebert, Captain, U.S. Coast Guard, Captain of the Port, Puget Sound. [FR Doc. 2010–10310 Filed 4–30–10; 11:15 am] BILLING CODE 9110–04–P PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 100 [Docket No. USCG–2010–0345] Seattle Seafair Unlimited Hydroplane Race Coast Guard, DHS. Notice of enforcement of regulation. AGENCY: ACTION: SUMMARY: The Coast Guard will enforce the special local regulation supporting the Seattle Seafair Unlimited Hydroplane Race on Lake Washington, WA from 10 a.m. on August 5, 2010 through 6 p.m. on August 8, 2010 during hydroplane race times. This action is necessary to ensure public safety from the inherent dangers associated with high-speed races while ensuring unencumbered access for rescue personnel in the event of an emergency. During the enforcement period, no person or vessel will be allowed to enter the safety zone without the permission of the Captain of the Port, on-scene Patrol Commander or Designated Representative. DATES: The regulations in 33 CFR 100.1301 will be enforced on: August 5, 2010 from 10 a.m. to 3 p.m.; August 6, 2010 from 8:30 a.m. to 6 p.m.; August 7, 2010 from 8:30 a.m. to 6 p.m.; and August 8, 2010 from 7:30 a.m. to 6 p.m. FOR FURTHER INFORMATION CONTACT: If you have questions on this notice, call or e-mail Ensign Ashley M. Wanzer, Sector Seattle Waterways Management Division, Coast Guard; telephone 206– 217–6175, e-mail SectorSeattleWWM@uscg.mil. SUPPLEMENTARY INFORMATION: The Coast Guard will enforce the special local regulation for the annual Seattle Seafair Unlimited Hydroplane Race in 33 CFR 100.1301 on August 5, 2010 from 10 a.m. to 3 p.m.; August 6, 2010 from 8:30 a.m. to 6 p.m.; August 7, 2010 from 8:30 a.m. to 6 p.m.; and August 8, 2010 from 7:30 a.m. to 6 p.m. Under the provisions of 33 CFR 100.1301, the Coast Guard will restrict general navigation in the following area: E:\FR\FM\04MYR1.SGM 04MYR1

Agencies

[Federal Register Volume 75, Number 85 (Tuesday, May 4, 2010)]
[Rules and Regulations]
[Pages 23582-23587]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-10291]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

[Docket ID: MMS-2007-OMM-0068]
RIN 1010-AD47


Annular Casing Pressure Management for Offshore Wells

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule will establish regulations to address 
sustained casing pressure in oil and gas wells completed in the Outer 
Continental Shelf. Sustained casing pressure is a problem that, if left 
untreated, could cause serious harm to human life and the environment. 
The final rule will establish criteria for monitoring and testing of 
wells with sustained casing pressure, and will also incorporate the 
American Petroleum Institute's Recommended Practice for managing 
annular casing pressure. New regulations are needed because the current 
regulations do not adequately address the requirements for wells that 
have sustained casing pressure. This rule will promote human safety and 
environmental protection, and require Outer Continental Shelf lessees 
to follow best industry practices for wells with sustained casing 
pressure.

DATES: Effective Date: This rule becomes effective on June 3, 2010. The 
incorporation by reference of the publication listed in the regulation 
is approved by the Director of the Federal Register as of June 3, 2010.

FOR FURTHER INFORMATION CONTACT: For comments or questions on 
procedural issues, contact Kirk Malstrom, Office of Offshore Regulatory 
Programs, Regulations and Standards Branch, 703-787-1751. For questions 
on technical issues, contact Russell Hoshman, Technical Assessment and 
Operations Support Section, Gulf of Mexico Outer Continental Shelf 
Region, 504-736-2627.

SUPPLEMENTARY INFORMATION: On July 31, 2009, MMS published the proposed 
rule Annular Casing Pressure Management for Offshore Wells (74 FR 
38147). The comment period for the proposed rule was open for 60 days. 
During the comment period, MMS received three comments. Two comments 
were in favor of this rule and the remaining comment was not associated 
with this rulemaking.
    There are no changes between the proposed and final rule language. 
There are also no changes to the procedural matters discussion 
regarding information collection requirements, cost estimates, 
benefits, or impacts to small entities.
    Public Comments: The MMS received three comments on the proposed 
rule 1010-AD47 Annular Casing Pressure Management for Offshore Wells. 
The comments received are summarized as follows:
     British Petroleum (BP)--BP, a large oil and gas company, 
expressed the importance of this rule and how they have been involved 
with MMS and industry to develop the industry standard.
     Offshore Operators Committee (OOC)--OOC, a large oil and 
gas industry organization, stated their support of this rulemaking and 
their involvement with the industry standard.
     Private citizen--This comment is not associated with this 
rulemaking.
    The two applicable comments received on the proposed rule are fully 
supportive of this rulemaking.
    Background: Sustained casing pressure (SCP) is pressure between the 
casing and the well's tubing, or between strings of casing, that 
rebuilds after being bled down. The SCP represents an ongoing safety 
hazard and can cause serious or immediate harm or damage to human life, 
the marine and coastal environment, and property. The oil and gas 
industry in the Gulf of Mexico (GOM) has suffered serious accidents as 
a result of high SCP, and the lack of proper control and monitoring of 
these pressures. With over 8,000 affected wells in the GOM with SCP in 
at least one annulus, immediate elimination of all SCP has proved to be 
impractical and exceedingly costly. The MMS has sought to identify and 
eliminate SCP in cases that represent a clear hazard to the safety of 
personnel or the environment, and establish a monitoring system for the 
rest, all the while working towards elimination of the problem.
    The MMS is currently addressing the issue of casing pressure in a 
1994 Letter

[[Page 23583]]

to Lessees (LTL) and a 2009 Notice to Lessees (NTL), 2009 G-22, August 
3, 2009. Once the final rulemaking becomes effective, both the 1994 LTL 
and the 2009 NTL on casing pressure will be rescinded.
    Included in this final rule is the incorporation of a jointly 
developed industry standard that addresses management of casing 
pressure. The American Petroleum Institute (API), industry, and MMS 
have worked collectively to produce API Recommended Practice (RP) 90. 
As explained in API RP 90, Section 3, Annular Casing Pressure 
Management Program, this RP is based on establishing an annular casing 
pressure management program that filters out non-problematic wells that 
present an acceptable level of risk, thus allowing for a more focused 
effort on wells that are problematic. The management program, as 
outlined in API RP 90, includes monitoring, diagnostic testing, 
determining maximum allowable wellhead operating pressure (MAWOP) for 
each annulus, documentation, and risk assessment considerations.
    For further background information on this rulemaking, refer to the 
published proposed rule 1010-AD47 Annular Casing Pressure Management 
for Offshore Wells (74 FR 38147, July 31, 2009).

Procedural Matters

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

    This final 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) This 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. There will be some costs associated with this rulemaking, 
mostly for diagnostic testing, MAWOP calculations, and reporting to 
MMS. Taking into account paperwork burden requirements, diagnostic 
testing, and MAWOP calculations, the costs associated with this 
rulemaking will be approximately $5 million industry-wide. The final 
rule will not require any new equipment to be installed and diagnostic 
testing is currently being done throughout industry and is not new.
    (2) This final rule will not create a serious inconsistency or 
otherwise interfere with an 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. The changes in the final rule are 
strictly planning requirements for management of annular casing 
pressure in offshore wells.
    (4) This final rule will not raise novel legal or policy issues 
arising out of legal mandates, the President's priorities, or the 
principles set forth in E.O. 12866.

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.).
    This rulemaking will affect lessees and operators of leases and 
pipeline right-of-way holders in the OCS. This could include about 130 
active Federal oil and gas lessees. Small entities that operate under 
this rule are coded under the Small Business Administration's 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 one 
with fewer than 500 employees. Based on these criteria, an estimated 70 
percent (91) of these companies are considered small. This final rule, 
therefore, will affect a substantial number of small entities. This 
rule will affect every well in the OCS, and every operator both large 
and small will have the same criteria per well regardless of company 
size.
    Nonetheless, this rulemaking will not have a significant economic 
effect on a substantial number of small entities because management of 
annular casing pressure will be a moderate cost, mostly attributable to 
diagnostic testing. Taking into account recordkeeping, diagnostic 
testing, and MAWOP calculations, the costs associated with this 
rulemaking will be approximately $5 million industry-wide. In 
comparison, to remediate the approximate 8,000 wells with SCP 
(approximately $250,000 per well) would cost approximately $2 billion. 
The costs that are associated with this rulemaking will be minor when 
compared to SCP remediation costs and will not impede a company of any 
size.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the actions of MMS, call 1-888-734-
3247. You may comment to the Small Business Administration without fear 
of retaliation. Allegations of discrimination/retaliation filed with 
the Small Business Administration will be investigated for appropriate 
action.

Small Business Regulatory Enforcement Fairness Act

    This final rule is not a major rule under the Small Business 
Regulatory Enforcement Fairness Act (5 U.S.C. 801 et seq.). This final 
rule:
    a. Will not have an annual effect on the economy of $100 million or 
more.
    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 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:

[[Page 23584]]

    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
    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 nor tribally owned businesses subject to the regulation.

Paperwork Reduction Act (PRA)

    The final rule contains no new reporting or recordkeeping 
requirements, and an Office of Management and Budget (OMB) submission 
under the PRA (44 U.S.C. 3501 et seq.) is not required. 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 final regulations will 
replace the references to LTLs and NTLs with specific cites to the Code 
of Federal Regulations. The final rulemaking refers to, but does not 
change, information collection requirements under approved OMB Control 
Number 1010-0067 (18,756 hours, expiration 12/31/2010).

National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 is not required 
because we reached a Finding of No Significant Impact. A copy of the 
Environmental Assessment can be viewed at http://www.Regulations.gov. 
(type in ``environmental assessment'' for the document type and use the 
keyword/ID ``MMS-2007-OMM-0068.'')

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 section 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

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Incorporation by reference, Oil and gas 
exploration, and Reporting and recordkeeping requirements.

    Dated: April 2, 2010.
Ned Farquhar,
Assistant Secretary--Land and Minerals Management.

0
For the reasons stated in the preamble, the Minerals Management Service 
(MMS) is amending 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. Amend Sec.  250.198 by adding paragraph (h)(78) to read as follows:


Sec.  250.198  Documents incorporated by reference.

* * * * *
    (h) * * *
    (78) API RP 90, Annular Casing Pressure Management for Offshore 
Wells, First Edition, August 2006, Product No. G09001, incorporated by 
reference at Sec.  250.518.
* * * * *

0
3. Revise Sec.  250.517(c) to read as follows:


Sec.  250.517  Tubing and wellhead equipment.

* * * * *
    (c) When the tree is installed, you must equip wells to monitor for 
casing pressure according to the following chart:

------------------------------------------------------------------------
                                 you must equip *   so you can monitor *
       If you have * * *               * *                  * *
------------------------------------------------------------------------
(1) fixed platform wells,.....  the wellhead,....  all annuli (A, B, C,
                                                    D, etc., annuli).
(2) subsea wells,.............  the tubing head,.  the production casing
                                                    annulus (A annulus).
(3) hybrid* wells,............  the surface        all annuli at the
                                 wellhead,.         surface (A and B
                                                    riser annuli). If
                                                    the production
                                                    casing below the
                                                    mudline and the
                                                    production casing
                                                    riser above the
                                                    mudline are pressure
                                                    isolated from each
                                                    other, provisions
                                                    must be made to
                                                    monitor the
                                                    production casing
                                                    below the mudline
                                                    for casing pressure.
------------------------------------------------------------------------
* Characterized as a well drilled with a subsea wellhead and completed
  with a surface casing head, a surface tubing head, a surface tubing
  hanger, and a surface christmas tree.

* * * * *

0
4. Add an undesignated center heading and new Sec. Sec.  250.518 
through 250.530 to Subpart E--Oil and Gas Well-Completion Operations to 
read as follows:
* * * * *

Casing Pressure Management

Sec.
250.518 What are the requirements for casing pressure management?
250.519 How often do I have to monitor for casing pressure?
250.520 When do I have to perform a casing diagnostic test?
250.521 How do I manage the thermal effects caused by initial 
production on a newly completed or recompleted well?
250.522 When do I have to repeat casing diagnostic testing?
250.523 How long do I keep records of casing pressure and diagnostic 
tests?
250.524 When am I required to take action from my casing diagnostic 
test?
250.525 What do I submit if my casing diagnostic test requires 
action?
250.526 What must I include in my notification of corrective action?
250.527 What must I include in my casing pressure request?
250.528 What are the terms of my casing pressure request?
250.529 What if my casing pressure request is denied?
250.530 When does my casing pressure request become invalid?


Sec.  250.518  What are the requirements for casing pressure 
management?

    Once you install your wellhead, you must meet the casing pressure 
management requirements of API RP 90 (incorporated by reference as 
specified in Sec.  250.198) and the requirements of Sec. Sec.  250.519 
through 250.530. If there is a conflict between API RP 90 and the 
casing pressure requirements of this

[[Page 23585]]

subpart, you must follow the requirements of this subpart.


Sec.  250.519  How often do I have to monitor for casing pressure?

    You must monitor for casing pressure in your well according to the 
following table:

 
------------------------------------------------------------------------
                                                     with a minimum one
       If you have * * *         you must monitor   pressure data point
                                      * * *          recorded per * * *
------------------------------------------------------------------------
(a) fixed platform wells,.....  monthly,.........  month for each
                                                    casing.
(b) subsea wells,.............  continuously,....  day for the
                                                    production casing.
(c) hybrid wells,.............  continuously,....  day for each riser
                                                    and/or the
                                                    production casing.
(d) wells operating under a     daily,...........  day for each casing.
 casing pressure request on a
 manned fixed platform,
(e) wells operating under a     weekly,..........  week for each casing.
 casing pressure request on an
 unmanned fixed platform,
------------------------------------------------------------------------

Sec.  250.520  When do I have to perform a casing diagnostic test?

    (a) You must perform a casing diagnostic test within 30 days after 
first observing or imposing casing pressure according to the following 
table:

------------------------------------------------------------------------
                                    you must perform a casing diagnostic
        If you have a * * *                     test if * * *
------------------------------------------------------------------------
(1) fixed platform well,..........  the casing pressure is greater than
                                     100 psig.
(2) subsea well,..................  the measurable casing pressure is
                                     greater than the external
                                     hydrostatic pressure plus 100 psig
                                     measured at the subsea wellhead.
(3) hybrid well,..................  a riser or the production casing
                                     pressure is greater than 100 psig
                                     measured at the surface.
------------------------------------------------------------------------

    (b) You are exempt from performing a diagnostic pressure test for 
the production casing on a well operating under active gas lift.


Sec.  250.521  How do I manage the thermal effects caused by initial 
production on a newly completed or recompleted well?

    A newly completed or recompleted well often has thermal casing 
pressure during initial startup. Bleeding casing pressure during the 
startup process is considered a normal and necessary operation to 
manage thermal casing pressure; therefore, you do not need to evaluate 
these operations as a casing diagnostic test. After 30 days of 
continuous production, the initial production startup operation is 
complete and you must perform casing diagnostic testing as required in 
Sec. Sec.  250.520 and 250.522.


Sec.  250.522  When do I have to repeat casing diagnostic testing?

    Casing diagnostic testing must be repeated according to the 
following table:

------------------------------------------------------------------------
                                            you must repeat diagnostic
               When * * *                         testing * * *
------------------------------------------------------------------------
(a) your casing pressure request         immediately.
 approved term has expired,.
(b) your well, previously on gas lift,   immediately on the production
 has been shut-in or returned to          casing (A annulus). The
 flowing status without gas lift for      production casing (A annulus)
 more than 180 days,                      of wells on active gas lift
                                          are exempt from diagnostic
                                          testing.
(c) your casing pressure request         within 30 days.
 becomes invalid,.
(d) a casing or riser has an increase    within 30 days.
 in pressure greater than 200 psig over
 the previous casing diagnostic test,
(e) after any corrective action has      within 30 days.
 been taken to remediate undesirable
 casing pressure, either as a result of
 a casing pressure request denial or
 any other action,
(f) your fixed platform well production  once per year, not to exceed 12
 casing (A annulus) has pressure          months between tests.
 exceeding 10 percent of its minimum
 internal yield pressure (MIYP), except
 for production casings on active gas
 lift,
(g) your fixed platform well's outer     once every 5 years, at a
 casing (B, C, D, etc., annuli) has a     minimum.
 pressure exceeding 20 percent of its
 MIYP,
------------------------------------------------------------------------

Sec.  250.523  How long do I keep records of casing pressure and 
diagnostic tests?

    Records of casing pressure and diagnostic tests must be kept at the 
field office nearest the well for a minimum of 2 years. The last casing 
diagnostic test for each casing or riser must be retained at the field 
office nearest the well until the well is abandoned.


Sec.  250.524  When am I required to take action from my casing 
diagnostic test?

    You must take action if you have any of the following conditions:
    (a) Any fixed platform well with a casing pressure exceeding its 
maximum allowable wellhead operating pressure (MAWOP);
    (b) Any fixed platform well with a casing pressure that is greater 
than 100 psig and that cannot bleed to 0 psig

[[Page 23586]]

through a \1/2\-inch needle valve within 24 hours, or is not bled to 0 
psig during a casing diagnostic test;
    (c) Any well that has demonstrated tubing/casing, tubing/riser, 
casing/casing, riser/casing, or riser/riser communication;
    (d) Any well that has sustained casing pressure (SCP) and is bled 
down to prevent it from exceeding its MAWOP, except during initial 
startup operations described in Sec.  250.521;
    (e) Any hybrid well with casing or riser pressure exceeding 100 
psig; or
    (f) Any subsea well with a casing pressure 100 psig greater than 
the external hydrostatic pressure at the subsea wellhead.


Sec.  250.525  What do I submit if my casing diagnostic test requires 
action?

    Within 14 days after you perform a casing diagnostic test requiring 
action under Sec.  250.524:

----------------------------------------------------------------------------------------------------------------
       You must submit either:           to the appropriate:      and it must include:        You must also:
----------------------------------------------------------------------------------------------------------------
(a) a notification of corrective       District Manager and     requirements under Sec.  submit an Application
 action; or,                            copy the Regional          250.526.               for Permit to Modify
                                        Supervisor, Field                                 or Corrective Action
                                        Operations,                                       Plan within 30 days of
                                                                                          the diagnostic test.
(b) a casing pressure request,.......  Regional Supervisor,     requirements under Sec.
                                        Field Operations,          250.527.
----------------------------------------------------------------------------------------------------------------

Sec.  250.526  What must I include in my notification of corrective 
action?

    The following information must be included in the notification of 
corrective
    (a) Lessee or Operator name;
    (b) Area name and OCS block number;
    (c) Well name and API number; and
    (d) Casing diagnostic test data.


Sec.  250.527  What must I include in my casing pressure request?

    The following information must be included in the casing pressure 
request:
    (a) API number;
    (b) Lease number;
    (c) Area name and OCS block number;
    (d) Well number;
    (e) Company name and mailing address;
    (f) All casing, riser, and tubing sizes, weights, grades, and MIYP;
    (g) All casing/riser calculated MAWOPs;
    (h) All casing/riser pre-bleed down pressures;
    (i) Shut-in tubing pressure;
    (j) Flowing tubing pressure;
    (k) Date and the calculated daily production rate during last well 
test (oil, gas, basic sediment, and water);
    (l) Well status (shut-in, temporarily abandoned, producing, 
injecting, or gas lift);
    (m) Well type (dry tree, hybrid, or subsea);
    (n) Date of diagnostic test;
    (o) Well schematic;
    (p) Water depth;
    (q) Volumes and types of fluid bled from each casing or riser 
evaluated;
    (r) Type of diagnostic test performed:
    (1) Bleed down/buildup test;
    (2) Shut-in the well and monitor the pressure drop test;
    (3) Constant production rate and decrease the annular pressure 
test;
    (4) Constant production rate and increase the annular pressure 
test;
    (5) Change the production rate and monitor the casing pressure 
test; and
    (6) Casing pressure and tubing pressure history plot;
    (s) The casing diagnostic test data for all casing exceeding 100 
psig;
    (t) Associated shoe strengths for casing shoes exposed to annular 
fluids;
    (u) Concentration of any H2S that may be present;
    (v) Whether the structure on which the well is located is manned or 
unmanned;
    (w) Additional comments; and
    (x) Request date.


Sec.  250.528  What are the terms of my casing pressure request?

    Casing pressure requests are approved by the Regional Supervisor, 
Field Operations, for a term to be determined by the Regional 
Supervisor on a case-by-case basis. The Regional Supervisor may impose 
additional restrictions or requirements to allow continued operation of 
the well.


Sec.  250.529  What if my casing pressure request is denied?

    (a) If your casing pressure request is denied, then the operating 
company must submit plans for corrective action to the respective 
District Manager within 30 days of receiving the denial. The District 
Manager will establish a specific time period in which this corrective 
action will be taken. You must notify the respective District Manager 
within 30 days after completion of your corrected action.
    (b) You must submit the casing diagnostic test data to the 
appropriate Regional Supervisor, Field Operations, within 14 days of 
completion of the diagnostic test required under Sec.  250.522(e).


Sec.  250.530  When does my casing pressure request approval become 
invalid?

    A casing pressure request becomes invalid when:
    (a) The casing or riser pressure increases by 200 psig over the 
approved casing pressure request pressure;
    (b) The approved term ends;
    (c) The well is worked-over, side-tracked, redrilled, recompleted, 
or acid stimulated;
    (d) A different casing or riser on the same well requires a casing 
pressure request; or
    (e) A well has more than one casing operating under a casing 
pressure request and one of the casing pressure requests become 
invalid, then all casing pressure requests for that well become 
invalid.

0
5. Revise Sec.  250.617(c) to read as follows:


Sec.  250.617  Tubing and wellhead equipment.

* * * * *
    (c) When reinstalling the tree, you must:
    (1) Equip wells to monitor for casing pressure according to the 
following chart:

------------------------------------------------------------------------
                                 you must equip *   so you can monitor *
       If you have * * *               * *                  * *
------------------------------------------------------------------------
(i) fixed platform wells,.....  the wellhead,....  all annuli (A, B, C,
                                                    D, etc., annuli).
(ii) subsea wells,............  the tubing head,.  the production casing
                                                    annulus (A annulus).

[[Page 23587]]

 
(iii) hybrid* wells,..........  the surface        all annuli at the
                                 wellhead,.         surface (A and B
                                                    riser annuli). If
                                                    the production
                                                    casing below the
                                                    mudline and the
                                                    production casing
                                                    riser above the
                                                    mudline are pressure
                                                    isolated from each
                                                    other, provisions
                                                    must be made to
                                                    monitor the
                                                    production casing
                                                    below the mudline
                                                    for casing pressure.
------------------------------------------------------------------------
*Characterized as a well drilled with a subsea wellhead and completed
  with a surface casing head, a surface tubing head, a surface tubing
  hanger, and a surface christmas tree.

    (2) Follow the casing pressure management requirements in subpart E 
of this part.
* * * * *
[FR Doc. 2010-10291 Filed 5-3-10; 8:45 am]
BILLING CODE 4310-MR-P