Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Decommissioning Costs for Pipelines, 53348-53353 [2016-19057]
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Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules
delegation, in any case in which a
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it appropriate, he or she may submit to
the Commission for its consideration the
question of whether an extension of
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of authority in this paragraph shall not
prohibit the Commission, at its election,
from exercising the authority set forth in
paragraph (f)(5) of this section.
Issued in Washington, DC, on August 8,
2016, by the Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.
Note: The following appendix will not
appear in the Code of Federal Regulations.
Appendix to Chief Compliance Officer
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Dealers, and Major Swap Participants;
Amendments to Filing Dates—
Commission Voting Summary
On this matter, Chairman Massad and
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in the affirmative. No Commissioner voted in
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[FR Doc. 2016–19231 Filed 8–11–16; 8:45 am]
BILLING CODE 6351–01–P
DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental
Enforcement
30 CFR Part 250
[Docket ID: BSEE–2016–0004; 16XE1700DX
EEEE500000 EX1SF0000.DAQ000]
RIN 1014–AA32
Oil and Gas and Sulfur Operations in
the Outer Continental Shelf—
Decommissioning Costs for Pipelines
Bureau of Safety and
Environmental Enforcement,
Department of the Interior.
ACTION: Proposed rule.
AGENCY:
The Bureau of Safety and
Environmental Enforcement (BSEE)
proposes to amend the regulations
requiring lessees and owners of
operating rights to submit summaries of
actual decommissioning expenditures
incurred for certain decommissioning
activities related to oil and gas and
sulfur operations on the Outer
Continental Shelf (OCS). The proposed
rule would expand the scope of the
current regulations to require lessees,
owners of operating rights, and right-ofway (ROW) holders to submit
summaries of actual expenditures
incurred for pipeline decommissioning
activities.
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SUMMARY:
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Submit comments by September
12, 2016. BSEE may not fully consider
comments received after this date. You
may submit comments to the Office of
Management and Budget (OMB) on the
information collection burden in this
proposed rule by September 12, 2016.
ADDRESSES: You may submit comments
on this proposed rulemaking by any of
the following methods. Please use the
Regulation Identifier Number (RIN)
1014–AA32 as an identifier in your
message. BSEE may post all submitted
comments on a public Web site.
1. Submit comments electronically via
the Federal eRulemaking Portal: https://
www.regulations.gov. In the entry titled
‘‘Enter Keyword or ID,’’ enter BSEE–
2016–0004, then click ‘‘Search.’’ Follow
the instructions to submit public
comments and view supporting and
related materials available for this
proposed rulemaking.
2. Mail or hand-carry comments to the
Department of the Interior (DOI); Bureau
of Safety and Environmental
Enforcement; Attention: Regulations
and Standards Branch; 45600 Woodland
Road, Sterling, VA 20166, VAE–ORP.
Please reference ‘‘Decommissioning
Costs for Pipelines, 1014–AA32’’ in
your comments and include your name
and return address.
3. Comments on the information
collection contained in this proposed
rule should be submitted separately
from those on the substance of the
proposed rule. Send comments on the
information collection burden in this
proposed rule to: OMB, Interior Desk
Officer 1014–AA32, 202–395–5806
(fax); or email: OIRA_submission@
omb.eop.gov. Please send a copy of your
comments to BSEE using one of the
methods previously described.
FOR FURTHER INFORMATION CONTACT:
Betty Cox, Regulatory Analyst,
Regulations and Standards Branch,
Betty.Cox@bsee.gov, (703) 787–1616.
SUPPLEMENTARY INFORMATION:
DATES:
BSEE’s Functions and Authority
BSEE promotes safety, protects the
environment, and conserves natural
resources through vigorous regulatory
oversight and enforcement of certain
activities on the OCS. BSEE derives its
authority primarily from the Outer
Continental Shelf Lands Act (OCSLA),
43 U.S.C. 1331–1356a. Congress enacted
OCSLA in 1953, codifying Federal
control over the OCS and authorizing
the Secretary of the Interior (Secretary)
to regulate oil and natural gas
exploration, development, and
production operations on the OCS. The
Secretary has authorized BSEE to
perform certain of these functions,
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including overseeing decommissioning.
(See 30 CFR 250.101; 30 CFR part 250,
subpart Q.) To carry out its
responsibilities, BSEE regulates
exploration, development, and
production of oil and natural gas to
enhance safety and environmental
protection in a way that reflects
advancements in technology and new
information. BSEE also conducts onsite
inspections to ensure compliance with
regulations, lease terms, and approved
plans or permits. Detailed information
concerning BSEE’s regulations and
guidance for the offshore industry may
be found on BSEE’s Web site at:
www.bsee.gov/Regulations-andGuidance/index.
Public Participation and Availability of
Comments
BSEE encourages you to participate in
this proposed rulemaking by submitting
written comments, as discussed in the
ADDRESSES and DATES sections of this
proposed rule. This proposed rule
provides 30 days for public comment for
the following reasons. The need for
submission of actual decommissioning
cost information for plugging wells,
removing platforms, and clearing of
sites was explained in a proposed rule
published on May 27, 2009 (74 FR
25177) and a final rule published on
December 4, 2015 (80 FR75806). That
final rule addressed and responded to
all of the relevant comments submitted
on the proposed rule. This proposed
rule would extend the existing
requirements for submitting summaries
of actual decommissioning costs (30
CFR 250.1704(i) and (j)) to pipelines.
The reasons for this proposed rule, as
discussed in the Background and
Purpose of Proposed Amendment
sections of this notice are effectively the
same for pipelines as the reasons
discussed in the December 4, 2016 rule
for the reporting of decommissioning
costs for other facilities. BSEE does not
expect that public comments on this
proposed rule are likely to raise any
significant issues that were not raised in
the earlier decommissioning cost
reporting rulemaking. Moreover, the
affected stakeholders in the oil and gas
industry are already familiar with the
terms and requirements of the existing
decommissioning cost reporting rule,
which would apply without change to
pipelines under this proposed rule.
Accordingly, BSEE has determined that
30 days provides a reasonable and
adequate opportunity for the public to
comment on this proposed rule.
Before including your address, phone
number, email address, or other
personal identifying information in your
comment on this proposed rule,
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however, you should be aware that your
entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
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Background
Among its responsibilities, BSEE
regulates certain types of oil and gas
pipelines used on the OCS. (See 30 CFR
250.1000–250.1019). In general, BSEE
regulates pipelines or pipeline segments
on the OCS that are operated by oil and
gas producers, as opposed to pipelines
operated by transporters. Specifically,
BSEE regulates producer-operated
pipelines that: (1) Extend upstream
(generally seaward) from each point on
the OCS at which operating
responsibility transfers from a
producing operator to a transporting
operator; (2) extend upstream (generally
seaward) from the last valve (including
associated safety equipment) on the last
OCS production facility and that do not
connect to a transporter-operated
pipeline on the OCS before crossing into
State waters; or (3) connect production
facilities on the OCS. (See § 250.1001.)
BSEE also regulates transporter-operated
pipelines that DOI and the U.S.
Department of Transportation (DOT)
have agreed are to be regulated as DOI
pipelines as well as all other OCS
pipelines not subject to DOT
regulation.1 (See id.)
Pipelines regulated by BSEE generally
fall within two categories: (1) ‘‘lease
term’’ pipelines (i.e., pipelines owned
and operated by a lessee or operator and
located entirely within the boundaries
of a single lease, unitized leases, or the
contiguous leases of that lessee or
operator); or (2) ROW pipelines (i.e.,
OCS pipelines owned and operated by
an entity other than the lessee or
operator of the lease(s), unit, or
contiguous leases in which the pipeline
is contained, as well as pipelines that
cross unleased areas).2 Among other
things, BSEE approves the installation,
modification, and decommissioning of
all lease term and ROW pipelines, and
the modification or relinquishment of
all pipeline ROW grants on the OCS.
BSEE’s regulations for decommissioning
1 BSEE-regulated pipelines are also referred to as
‘‘DOI pipelines.’’ See 30 CFR 250.1001. Pipelines
subject to DOT regulations are commonly referred
to as ‘‘DOT pipelines,’’ see id., and are regulated by
the DOT Pipeline and Hazardous Materials Safety
Administration (PHMSA).
2 ROW pipelines also include all DOI pipelines
not defined as lease term pipelines. See 30 CFR
250.1001 for definitions of lease term pipelines and
ROW pipelines.
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pipelines are found at 30 CFR 250.1700
through 250.1704 and 250.1750 through
250.1754.
As of August 1, 2016, BSEE regulates
4,842 active pipeline segments 3
(totaling approximately 20,837 miles)
and 1,553 out-of-service pipeline
segments (totaling approximately 2,249
miles). In addition, BSEE has regulatory
authority over 8,832 decommissioned
pipeline segments, as well as 825
pipeline segments that have been
approved for decommissioning.
BSEE’s requirements for
decommissioning a pipeline are found
at §§ 250.1750–250.1754. Pursuant to
§ 250.1751, requirements for
decommissioning a pipeline in place
include: pigging (to remove any residual
hydrocarbons from the pipeline), unless
the Regional Supervisor determines that
pigging is not practical; flushing and
filling the pipeline with seawater;
cutting and plugging the ends of the
pipeline; and burying the ends at least
3 feet below the seafloor or covering the
ends with protective concrete mats, if
required by the Regional Supervisor.
Section 250.1751(g) also requires
removal of all valves and other fittings
that could unduly interfere with other
uses of the OCS.
In addition, under § 250.1754, BSEE
has the authority to require that lessees,
owners of operating rights, and ROW
holders remove pipelines previously
decommissioned in place if and when
the Regional Supervisor determines that
the pipeline is an obstruction.
BSEE’s requirements for
decommissioning by removing all or
part of a pipeline are found at
§ 250.1752 and include, in part, pigging
and flushing the pipeline (unless the
Regional Supervisor determines that
pigging is not practical) before removal.
Purpose of Proposed Amendment
In 2009, BSEE’s predecessor agency,
the Minerals Management Service
(MMS), proposed new reporting
requirements related to lease term
pipelines when MMS approves a lease
assignment. (See 74 FR 25177 (May 27,
2009).) MMS also proposed to require
the submission of information on
expenditures for decommissioning of
wells, platforms and other facilities and
for site clearance. (See id.)
In a final rule published on December
4, 2015, BSEE amended its regulations
to require lessees and owners of
operating rights to submit summaries of
actual decommissioning expenditures
for certain required decommissioning
activities within 120 days after
3 BSEE assigns pipeline segment numbers as
specific pipeline identifiers.
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53349
completion of each such activity. (See
80 FR 75806.) Specifically, the final rule
required reporting of summaries of
expenditures for plugging wells,
removing platforms and other facilities,
and clearing obstructions from sites. In
addition, the final rule authorized BSEE
to require additional supporting
information regarding specific
decommissioning costs on a case-bycase basis. The final rule was codified
at 30 CFR 250.1704(h) and (i).
Effective July 28, 2016, BSEE’s Well
Control final rule revised paragraph (g)
in § 250.1704, added a new paragraph
(h), and redesignated existing
paragraphs (h) and (i) as paragraphs (i)
and (j), respectively. (See 81 FR 25888
(April 29, 2016).) The Well Control rule
did not, however, affect the substance of
those decommissioning cost reporting
provisions.
On April 27, 2016, BSEE issued a
Notice to Lessees and Operators (NTL),
No. 2016–N03, Reporting Requirements
for Decommissioning Expenditures on
the OCS, providing guidance and
clarification regarding the submission of
the decommissioning cost summaries
required by § 250.1704(i).
BSEE did not include reporting of
expenditures for pipeline
decommissioning in the December 2015
final rule because the 2009 proposed
rule did not expressly refer to pipeline
decommissioning expenditures. BSEE
has determined, however, that accurate
information about expenditures
incurred for pipeline decommissioning
activities is needed to better estimate
future decommissioning costs for those
activities.
As BSEE explained in the December
2015 final rule, with regard to
expenditures for other types of
decommissioning activities under
§ 250.1704(i), summaries of actual
decommissioning expenditures will
help BSEE better estimate future
decommissioning costs. (See 80 FR
75806.) For the same reason, summaries
of actual pipeline decommissioning
expenditures will help BSEE better
estimate future decommissioning costs.
In addition, BSEE will share its
decommissioning cost estimates with
the Bureau of Ocean Energy
Management (BOEM) for use in setting
necessary financial assurance levels to
(1) minimize the possibility that the
government will incur future financial
liability for decommissioning pipelines
where the responsible party has failed to
carry out the required decommissioning;
and (2) enhance the accuracy of
financial assurance requirements
necessary to cover future
decommissioning liabilities.
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Accordingly, BSEE proposes to
expand the scope of § 250.1704(i) to
require that lessees, owners of operating
rights, and pipeline ROW holders
submit certified summaries of actual
expenditures for decommissioning of
pipelines.4 This proposal would also
authorize Regional Supervisors, under
§ 250.1704(j), to require the submission
of additional information, on a case-bycase basis, to support summaries of
pipeline decommissioning expenditures
submitted under § 250.1704(i). This
proposal rule would not otherwise
revise the existing decommissioning
cost reporting provisions.
Procedural Matters
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Regulatory Planning and Review
(Executive Orders 12866 and 13563)
Executive Order (E.O.) 12866 provides
that OMB, Office of Information and
Regulatory Affairs (OIRA), will review
all significant rules. BSEE has
determined that this proposed rule
would not be a significant regulatory
action as defined by section 3(f) of E.O.
12866 because:
—It is not expected to have an annual
effect on the economy of $100 million
or more;
—It would not adversely affect in a
material way the economy,
productivity, competition, jobs, the
environment, public health or safety,
or State, local, or tribal governments
or communities;
—It would not create a serious
inconsistency or otherwise interfere
with an action taken or planned by
another agency;
—It would not materially alter the
budgetary impact of entitlements,
grants, user fees, or loan programs, or
the rights or obligations of their
recipients; and
—It would 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.
Accordingly, BSEE has not prepared
an economic analysis beyond the
analysis required under the Paperwork
Reduction Act, and OIRA has not
reviewed this proposed rule.
E.O. 13563 reaffirms the principles of
E.O. 12866 while calling for
improvements in the Nation’s regulatory
system to promote predictability, to
reduce uncertainty, and to use the best,
most innovative, and least burdensome
tools for achieving regulatory ends. E.O.
13563 directs agencies to consider
4 BSEE recognizes that a designated operator may
submit the required summary of decommissioning
costs on behalf of a lessee.
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regulatory approaches that reduce
burdens and maintain flexibility and
freedom of choice for the public where
these approaches are relevant, feasible,
and consistent with regulatory
objectives. It also emphasizes that
regulations must be based on the best
available science and that the
rulemaking process must allow for
public participation and an open
exchange of ideas. BSEE developed this
proposed rule in a manner consistent
with these requirements.
Regulatory Flexibility Act (RFA)
BSEE certifies that this proposed rule
would not have a significant economic
effect on a substantial number of small
entities under the RFA (5 U.S.C. 601 et
seq.). This proposed rule would
potentially affect offshore lessees,
owners of operating rights and other
operators, and pipeline ROW holders
who perform decommissioning
activities under 30 CFR part 250,
subpart Q. In the December 2015 final
rule, using 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), we
estimated that a substantial number,
about 90 of the 130 active companies
potentially affected by that rule (i.e.,
lessees and operators), would be
considered small entities. (See 80 FR
75808.) However, we concluded that the
final rule would not have a significant
economic effect on those small entities
because the cost of requiring
decommissioning cost summaries is not
significant. (See id.)
This proposed rule could affect some
additional companies (i.e., ROW holders
that were not covered by the December
2015 final rule as lessees or owners of
operating rights) that would be required
to submit pipeline decommissioning
cost summaries. Using more recent
information than was available to us
when we published the December 2015
final rule, we estimate that the proposal
to require reporting of pipeline
decommissioning costs could affect
approximately 111 lessees, owners of
operating rights, and ROW holders that
currently own or control DOI pipelines,
including many companies already
covered by the December 2015 final
rule. Of these 111 potentially affected
entities, we estimate that a substantial
number (66 companies) are small
entities. Therefore, this proposed rule
would affect a substantial number of
small entities.
However, the proposed rule would
not impose significant economic
impacts on the potentially affected
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small entities. The proposed
requirement to submit pipeline
decommissioning cost summaries
would not result in significant
additional costs or burdens for any
affected entity. As indicated in the
Paperwork Reduction Act section of this
document, the annual burden of the
proposed rule is estimated to be only
500 hours in total for all affected entities
(whether or not small) to prepare and
submit their pipeline decommissioning
summaries. Accordingly, since the
changes reflected in the proposed rule
would not have a significant economic
effect on a substantial number of small
entities, the RFA does not require BSEE
to prepare a regulatory flexibility
analysis for this proposed rule.
Small Business Regulatory Enforcement
Fairness Act (SBREFA)
This proposed rule is not a major rule
under the SBREFA (5 U.S.C. 804(2)).
This rule would not:
—Have an annual effect on the economy
of $100 million or more;
—Cause a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies, or geographic
regions; or
—Have significant adverse effects on
competition, employment,
investment, productivity, innovation,
or the ability of U.S.-based enterprises
to compete with foreign-based
enterprises.
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
BSEE, call 1–888–734–3247. You may
comment to the Small Business
Administration (SBA) without fear of
retaliation. Allegations of
discrimination/retaliation filed with the
SBA will be investigated for appropriate
action.
Unfunded Mandates Reform Act of 1995
This proposed rule would not impose
an unfunded mandate on State, Tribal,
or local governments or the private
sector of more than $100 million per
year. The proposed rule also would not
have a significant or unique effect on
State, Tribal, or local governments or
the private sector. Thus, a statement
containing the information required by
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the Unfunded Mandates Reform Act (2
U.S.C. 1531 et seq.) is not required.
Takings Implication Assessment (E.O.
12630)
Under the criteria in E.O. 12630, this
proposed rule would not effect a taking
or otherwise have takings implications.
This proposed rule is not a
governmental action capable of
interference with constitutionally
protected property rights. Therefore, a
Takings Implication Assessment is not
required.
Federalism (E.O. 13132)
Under the criteria in E.O. 13132, this
proposed rule would not have
federalism implications. This proposed
rule would not have a substantial direct
effect on the States or the relationship
between the Federal and State
governments. To the extent that State
and local governments have a role in
OCS activities, this proposed rule would
not affect that role. Accordingly, a
federalism summary impact statement is
not required.
Civil Justice Reform (E.O. 12988)
This proposed rule complies with the
requirements of E.O. 12988, Civil Justice
Reform (February 7, 1996). Specifically,
this rule:
—Meets the criteria of section 3(a) of
E.O. 12988 requiring that all
regulations be reviewed to eliminate
drafting errors and ambiguity and be
written to minimize litigation; and
—Meets the criteria of section 3(b)(2) of
E.O. 12988 requiring that all
regulations be written in clear
language and contain clear legal
standards.
Consultation With Indian Tribal
Governments (E.O. 13175)
We have evaluated this proposed rule
under the Department’s tribal
consultation policy and under the
criteria in E.O. 13175 and have
determined that it would have no
substantial direct effects on federally
recognized Indian tribes. As a result,
consultation under the Department’s
tribal consultation policy is not
required.
Paperwork Reduction Act (PRA)
This proposed rule contains an
information collection (IC) that will be
submitted to the OMB for review and
approval under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.). As part of our continuing effort
to reduce paperwork and respondent
burdens, BSEE invites the public and
other Federal agencies to comment on
any aspect of the reporting and
recordkeeping burden. If you wish to
comment on the IC aspects of this
proposed rule, you may send your
comments directly to OMB and send a
copy of your comments to the
Regulations and Standards Branch (for
more information, see the DATES and
ADDRESSES section of this document).
Please refer to Decommissioning Costs
for Pipelines, 1014–AA32, in your
comments. BSEE specifically requests
comments concerning the need for the
information, its practical utility, the
accuracy of the agency’s burden
estimate, and ways to minimize the
burden. You may obtain a copy of the
supporting statement for the new
collection of information by contacting
the Bureau’s Information Collection
Clearance Officer at (703) 787–1607. To
see a copy of the entire IC request
submitted to OMB, go to https://
www.reginfo.gov (select Information
Collection Review, Currently Under
Review).
The title of the collection of
information for this proposed rule is 30
CFR part 250, subpart Q,
53351
Decommissioning Costs for Pipelines.
As with the other decommissioning
expenditure information currently
required to be submitted to BSEE under
§ 250.1704(i), summaries of actual
pipeline decommissioning expenditures
will help BSEE to better estimate future
decommissioning costs for OCS
pipelines. BOEM will then use BSEE’s
future pipeline decommissioning cost
estimates to set necessary financial
assurance levels to minimize or
eliminate the possibility that the
government will incur liability for
future pipeline decommissioning.
Potential respondents comprise
Federal OCS oil, gas, and sulfur lessees,
owners of operating rights, and pipeline
ROW holders. Responses to this
collection are mandatory. The frequency
of response is on occasion. The IC does
not include questions of a sensitive
nature. BSEE will protect confidential
commercial and proprietary information
according to FOIA (5 U.S.C. 552) and its
implementing regulations (43 CFR part
2), and 30 CFR 250.197 (Data and
information to be made available to the
public or for limited inspection), and 30
CFR part 252 (OCS Oil and Gas
Information Program).
Once the requirements of this
proposed rulemaking have been
codified, BSEE will consolidate these
additional burden hours into the
primary collection for 30 CFR part 250,
subpart Q, under OMB Control Number
1014–0010 (expiration 10/31/16; 29,437
burden hours and $2,152,644 non-hour
cost burdens). There are no non-hour
cost burdens associated with this
proposed rulemaking. The following
table is a breakdown of the burden
estimate:
BURDEN TABLE
Reporting and recordkeeping requirements
250.1704(i) ........................
Submit to the Regional Supervisor a complete summary of expenditures incurred within 120 days
after completion of each decommissioning activity
(including permanently plugging any well, removal
of any platform or facility, decommissioning of
pipelines, etc.).
250.1704(i) ........................
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Citation 30 CFR 250
Submit certified statement attesting to accuracy of
the summary for expenditures incurred.
Total ...........................
....................................................................................
An agency may not conduct or
sponsor and you are not required to
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1
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500 pipeline summaries ..
Exempt from the PRA under 5 CFR
1320.3(i)(1).
........................
respond to, a collection of information
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Average number of
annual responses
Hour burden
500 responses .................
Annual burden
hours
500
0
500
unless it displays a currently valid OMB
control number.
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National Environmental Policy Act of
1969 (NEPA)
This proposed rule meets the criteria
set forth in 516 Departmental Manual
(DM) 15.4C(1) for a categorical
exclusion because it involves
modification of existing regulations, the
impacts of which would be limited to
administrative or economic effects with
minimal environmental impacts.
We have also analyzed this proposed
rule to determine if it meets any of the
extraordinary circumstances set forth in
43 CFR 46.215 that would require an
environmental assessment or an
environmental impact statement for
actions otherwise eligible for a
categorical exclusion. We have
concluded that this proposed rule
would not meet any of the criteria for
extraordinary circumstances.
Data Quality Act
In developing this proposed rule, we
did not conduct or use a study,
experiment, or survey requiring peer
review under the Data Quality Act (44
U.S.C. 3516 et seq.,
Public Law 106–554, app. C § 515,
114 Stat. 2763, 2763A–153–154).
Effects on the Nation’s Energy Supply
(E.O. 13211)
This proposed rule would not be a
significant energy action under E.O.
13211 because:
—It is not a significant regulatory action
under E.O. 12866;
—It is not likely to have a significant
adverse effect on the supply,
distribution or use of energy; and
—It has not been designated as a
significant energy action by the
Administrator of OIRA.
Clarity of This Regulation (E.O. 12866
and E.O. 12988)
We are required by E.O. 12866 and
E.O. 12988, and by the Presidential
Memorandum of June 1, 1998, to write
all rules in plain language. This means
that each rule we publish must:
—Be logically organized;
—Use the active voice to address
readers directly;
—Use clear language rather than jargon;
—Be divided into short sections and
sentences; and
—Use lists and tables wherever
possible.
If you feel that we have not met these
requirements, send us comments by one
of the methods listed in the ADDRESSES
section. To better help us meet these
requirements, your comments should be
as specific as possible. For example, you
should tell us the numbers of the
sections or paragraphs that you find
unclear, which sections or sentences are
too long, and the sections where you
feel lists or tables would be useful.
List of Subjects in 30 CFR Part 250
Administrative practice and
procedure, Continental Shelf,
Environmental impact statements,
Environmental protection, Government
contracts, Investigations, Oil and gas
exploration, Penalties, Reporting and
recordkeeping requirements, Sulfur.
Janice M. Schneider,
Assistant Secretary, Land and Minerals
Management.
For the reasons stated in the
preamble, BSEE proposes to amend 30
CFR part 250 as follows:
PART 250—OIL AND GAS AND
SULFUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
1. The authority citation for part 250
continues to read as follows:
■
Authority: 30 U.S.C. 1751, 31 U.S.C. 9701,
33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334.
2. Amend § 250.1704 by revising
paragraphs (i) and (j) in the table to read
as follows:
■
§ 250.1704 What decommissioning
applications and reports must I submit and
when must I submit them?
*
*
*
*
*
When to submit
Instructions
*
*
*
(i) A certified summary of expenditures for permanently
plugging any well, removal of any platform or other facility, clearance of any site after wells have been
plugged or platforms or facilities removed, and decommissioning of pipelines.
*
Within 120 days after completion of each decommissioning activity specified in this paragraph.
(j) If requested by the Regional Supervisor, additional information in support of any decommissioning activity
expenditures included in a summary submitted under
paragraph (i) of this section.
ehiers on DSK5VPTVN1PROD with PROPOSALS
Decommissioning applications and reports
Within a reasonable time
as determined by the Regional Supervisor.
*
*
*
Submit to the Regional Supervisor a complete summary of expenditures actually incurred for each decommissioning activity (including, but not limited to,
the use of rigs, vessels, equipment, supplies and materials; transportation of any kind; personnel; and
services). Include in, or attach to, the summary a
certified statement by an authorized representative of
your company attesting to the truth, accuracy and
completeness of the summary. The Regional Supervisor may provide specific instructions or guidance
regarding how to submit the certified summary.
The Regional Supervisor will review the summary and
may provide specific instructions or guidance regarding the submission of additional information (including, but not limited to, copies of contracts and invoices), if requested, to complete or otherwise support the summary.
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Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules
[FR Doc. 2016–19057 Filed 8–11–16; 8:45 am]
BILLING CODE 4310–VH–P
DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 4
RIN 2900–AP27
Schedule for Rating Disabilities; Skin
Conditions
Department of Veterans Affairs.
Proposed rule.
AGENCY:
ACTION:
The Department of Veterans
Affairs (VA) proposes to amend the
portion of the VA Schedule for Rating
Disabilities (VASRD or Rating Schedule)
that addresses skin conditions. The
purpose of these changes is to
incorporate medical advances that have
occurred since the last review, update
current medical terminology, and
provide clear evaluation criteria. The
proposed rule reflects advances in
medical knowledge, recommendations
from the Skin Disorders Work Group,
which is comprised of subject matter
experts from both the Veterans Benefits
Administration and the Veterans Health
Administration, and comments from
experts and the public gathered as part
of a public forum. The public forum,
focusing on revisions to the skin
conditions section of the VASRD, was
held in January 2012.
DATES: Comment Date: Comments must
be received by VA on or before October
11, 2016.
Applicability Date: The provisions of
this rulemaking shall apply to all
applications for benefits that are
received by VA or that are pending
before the agency of original jurisdiction
on or after the effective date of the final
rule. The Secretary does not intend for
the provisions of this rulemaking to
apply to claims that have been certified
for appeal to the Board of Veterans’
Appeals or are pending before the Board
of Veterans’ Appeals, the United States
Court of Appeals for Veterans Claims, or
the United States Court of Appeals for
the Federal Circuit.
ADDRESSES: Written comments may be
submitted through
www.Regulations.gov; by mail or handdelivery to Director, Regulation Policy
and Management (02REG), Department
of Veterans Affairs, 810 Vermont
Avenue NW., Room 1068, Washington,
DC 20420; or by fax to (202) 273–9026.
(This is not a toll free number.)
Comments should indicate that they are
submitted in response to ‘‘RIN 2900–
AP27-Schedule for Rating Disabilities;
ehiers on DSK5VPTVN1PROD with PROPOSALS
SUMMARY:
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Skin Conditions.’’ Copies of comments
received will be available for public
inspection in the Office of Regulation
Policy and Management, Room 1068,
between the hours of 8:00 a.m. and 4:30
p.m., Monday through Friday (except
holidays). Please call (202) 461–4902 for
an appointment. (This is not a toll free
number.) In addition, during the
comment period, comments may be
viewed online through the Federal
Docket Management System (FDMS) at
www.Regulations.gov.
FOR FURTHER INFORMATION CONTACT: Gary
Reynolds, M.D., Regulations Staff
(211C), Compensation Service, Veterans
Benefits Administration, Department of
Veterans Affairs, 810 Vermont Avenue
NW., Washington, DC 20420, (202) 461–
9700. (This is not a toll-free number.)
SUPPLEMENTARY INFORMATION: The
National Defense Authorization Act For
Fiscal Year 2004, sec. 1501–07, Public
Law 108–136, 117 Stat. 1392,
established the Veterans’ Disability
Benefits Commission (Commission).
Section 1502 of Public Law 108–136
mandated the Commission to study
ways to improve the disability
compensation system for disabled
military veterans. The Commission
consulted with the Institute of Medicine
(IOM) to review the medical aspects of
the current disability compensation
policies for veterans. In 2007, the IOM
released its report titled, ‘‘A 21st
Century System for Evaluating Veterans
for Disability Benefits.’’
The IOM Report was notable in
several respects. The IOM observed, in
part, that the VASRD was inadequate at
times because it contained obsolete
information and did not sufficiently
integrate current and accepted
diagnostic procedures. In addition, the
IOM observed that the current body
system organization of the VASRD does
not reflect current knowledge of the
relationships between conditions and
comorbidities. Institute of Medicine,
Committee on Medical Evaluation of
Veterans for Disability Compensation,
‘‘A 21st Century System for Evaluating
Veterans for Disability Benefits,’’ 113
(Michael McGeary et al. eds. 2007).
Following release of the IOM report,
VA created a Skin Disorders Work
Group (Work Group). The goals adopted
by the Work Group were to: 1) improve
and update the criteria that VA uses to
assign levels of disability after service
connection is granted; 2) improve the
level of fairness in adjudication of
benefits related to service connected
disabilities of Veterans; and 3) invite
public participation. The Work Group
was led by co-chairs from the Veterans
Health Administration (VHA) and
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53353
Veterans Benefits Administration
(VBA). The workgroup was comprised
of subject matter experts (SMEs) from
within VA, DoD, and medical academia.
In addition, members from several
Veterans Service Organizations (VSOs)
were invited to participate as
representatives from the public. The
Work Group held a public forum in New
York City during January 2012, where
several SMEs gave presentations
focused on their particular area(s) of
expertise.
After the public forum, the Work
Group met periodically to continue the
revision efforts. Participants from VBA,
VHA, medical academia, and VSO
representatives continued work within
their areas of expertise. The regulation
drafting phase began in September 2013,
and continues through the publication
of this proposed rule. The rule VA
proposes is consistent with updating
and improving criteria by using
validated severity ratings specific to the
skin for each of the disability rating
levels. As discussed in more detail
below, the newly adopted classifications
are derived from current medical
practice.
Schedule of Ratings—Skin Conditions
General Rating Formula for Skin
Disorders
Section 4.118 currently lists 30
diagnostic codes (DCs) encompassing
conditions involving injury or disease of
the skin. VA proposes to revise these
codes, through addition, removal, or
other revisions, to reflect current
medical science, terminology, and
functional impairment.
VA would delete the current
introductory paragraph to § 4.118. VA
added the current paragraph to explain
the applicability of the 2008
amendments to § 4.118, DCs 7800, 7801,
7802, 7804, and 7805. This rulemaking
would make further amendments and
would render outdated the current
introductory paragraph. VA would add
an applicability date paragraph to the
dates section to explain this
rulemaking’s applicability. The existing
provisions in § 4.118 concerning review
of ratings and effective dates merely
reflect generally applicable principles
that need not be restated in the rating
schedule.
VA would add a new introductory
paragraph to state that, for the purposes
of § 4.118, systemic therapy is treatment
that is administered through any route
(orally, injection, suppository,
intranasally) other than the skin, and
topical therapy is treatment that is
administered through the skin. On
March 1, 2016, the United States Court
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]]>Agencies
- DEPARTMENT OF THE INTERIOR
- Bureau of Safety and Environmental Enforcement
[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Proposed Rules]
[Pages 53348-53353]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19057]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement
30 CFR Part 250
[Docket ID: BSEE-2016-0004; 16XE1700DX EEEE500000 EX1SF0000.DAQ000]
RIN 1014-AA32
Oil and Gas and Sulfur Operations in the Outer Continental
Shelf--Decommissioning Costs for Pipelines
AGENCY: Bureau of Safety and Environmental Enforcement, Department of
the Interior.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Safety and Environmental Enforcement (BSEE)
proposes to amend the regulations requiring lessees and owners of
operating rights to submit summaries of actual decommissioning
expenditures incurred for certain decommissioning activities related to
oil and gas and sulfur operations on the Outer Continental Shelf (OCS).
The proposed rule would expand the scope of the current regulations to
require lessees, owners of operating rights, and right-of-way (ROW)
holders to submit summaries of actual expenditures incurred for
pipeline decommissioning activities.
DATES: Submit comments by September 12, 2016. BSEE may not fully
consider comments received after this date. You may submit comments to
the Office of Management and Budget (OMB) on the information collection
burden in this proposed rule by September 12, 2016.
ADDRESSES: You may submit comments on this proposed rulemaking by any
of the following methods. Please use the Regulation Identifier Number
(RIN) 1014-AA32 as an identifier in your message. BSEE may post all
submitted comments on a public Web site.
1. Submit comments electronically via the Federal eRulemaking
Portal: https://www.regulations.gov. In the entry titled ``Enter Keyword
or ID,'' enter BSEE-2016-0004, then click ``Search.'' Follow the
instructions to submit public comments and view supporting and related
materials available for this proposed rulemaking.
2. Mail or hand-carry comments to the Department of the Interior
(DOI); Bureau of Safety and Environmental Enforcement; Attention:
Regulations and Standards Branch; 45600 Woodland Road, Sterling, VA
20166, VAE-ORP. Please reference ``Decommissioning Costs for Pipelines,
1014-AA32'' in your comments and include your name and return address.
3. Comments on the information collection contained in this
proposed rule should be submitted separately from those on the
substance of the proposed rule. Send comments on the information
collection burden in this proposed rule to: OMB, Interior Desk Officer
1014-AA32, 202-395-5806 (fax); or email: OIRA_submission@omb.eop.gov.
Please send a copy of your comments to BSEE using one of the methods
previously described.
FOR FURTHER INFORMATION CONTACT: Betty Cox, Regulatory Analyst,
Regulations and Standards Branch, Betty.Cox@bsee.gov, (703) 787-1616.
SUPPLEMENTARY INFORMATION:
BSEE's Functions and Authority
BSEE promotes safety, protects the environment, and conserves
natural resources through vigorous regulatory oversight and enforcement
of certain activities on the OCS. BSEE derives its authority primarily
from the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1331-
1356a. Congress enacted OCSLA in 1953, codifying Federal control over
the OCS and authorizing the Secretary of the Interior (Secretary) to
regulate oil and natural gas exploration, development, and production
operations on the OCS. The Secretary has authorized BSEE to perform
certain of these functions, including overseeing decommissioning. (See
30 CFR 250.101; 30 CFR part 250, subpart Q.) To carry out its
responsibilities, BSEE regulates exploration, development, and
production of oil and natural gas to enhance safety and environmental
protection in a way that reflects advancements in technology and new
information. BSEE also conducts onsite inspections to ensure compliance
with regulations, lease terms, and approved plans or permits. Detailed
information concerning BSEE's regulations and guidance for the offshore
industry may be found on BSEE's Web site at: www.bsee.gov/Regulations-and-Guidance/index.
Public Participation and Availability of Comments
BSEE encourages you to participate in this proposed rulemaking by
submitting written comments, as discussed in the ADDRESSES and DATES
sections of this proposed rule. This proposed rule provides 30 days for
public comment for the following reasons. The need for submission of
actual decommissioning cost information for plugging wells, removing
platforms, and clearing of sites was explained in a proposed rule
published on May 27, 2009 (74 FR 25177) and a final rule published on
December 4, 2015 (80 FR75806). That final rule addressed and responded
to all of the relevant comments submitted on the proposed rule. This
proposed rule would extend the existing requirements for submitting
summaries of actual decommissioning costs (30 CFR 250.1704(i) and (j))
to pipelines. The reasons for this proposed rule, as discussed in the
Background and Purpose of Proposed Amendment sections of this notice
are effectively the same for pipelines as the reasons discussed in the
December 4, 2016 rule for the reporting of decommissioning costs for
other facilities. BSEE does not expect that public comments on this
proposed rule are likely to raise any significant issues that were not
raised in the earlier decommissioning cost reporting rulemaking.
Moreover, the affected stakeholders in the oil and gas industry are
already familiar with the terms and requirements of the existing
decommissioning cost reporting rule, which would apply without change
to pipelines under this proposed rule. Accordingly, BSEE has determined
that 30 days provides a reasonable and adequate opportunity for the
public to comment on this proposed rule.
Before including your address, phone number, email address, or
other personal identifying information in your comment on this proposed
rule,
[[Page 53349]]
however, you should be aware that your entire comment--including your
personal identifying information--may be made publicly available at any
time. While you can ask us in your comment to withhold your personal
identifying information from public review, we cannot guarantee that we
will be able to do so.
Background
Among its responsibilities, BSEE regulates certain types of oil and
gas pipelines used on the OCS. (See 30 CFR 250.1000-250.1019). In
general, BSEE regulates pipelines or pipeline segments on the OCS that
are operated by oil and gas producers, as opposed to pipelines operated
by transporters. Specifically, BSEE regulates producer-operated
pipelines that: (1) Extend upstream (generally seaward) from each point
on the OCS at which operating responsibility transfers from a producing
operator to a transporting operator; (2) extend upstream (generally
seaward) from the last valve (including associated safety equipment) on
the last OCS production facility and that do not connect to a
transporter-operated pipeline on the OCS before crossing into State
waters; or (3) connect production facilities on the OCS. (See Sec.
250.1001.) BSEE also regulates transporter-operated pipelines that DOI
and the U.S. Department of Transportation (DOT) have agreed are to be
regulated as DOI pipelines as well as all other OCS pipelines not
subject to DOT regulation.\1\ (See id.)
---------------------------------------------------------------------------
\1\ BSEE-regulated pipelines are also referred to as ``DOI
pipelines.'' See 30 CFR 250.1001. Pipelines subject to DOT
regulations are commonly referred to as ``DOT pipelines,'' see id.,
and are regulated by the DOT Pipeline and Hazardous Materials Safety
Administration (PHMSA).
---------------------------------------------------------------------------
Pipelines regulated by BSEE generally fall within two categories:
(1) ``lease term'' pipelines (i.e., pipelines owned and operated by a
lessee or operator and located entirely within the boundaries of a
single lease, unitized leases, or the contiguous leases of that lessee
or operator); or (2) ROW pipelines (i.e., OCS pipelines owned and
operated by an entity other than the lessee or operator of the
lease(s), unit, or contiguous leases in which the pipeline is
contained, as well as pipelines that cross unleased areas).\2\ Among
other things, BSEE approves the installation, modification, and
decommissioning of all lease term and ROW pipelines, and the
modification or relinquishment of all pipeline ROW grants on the OCS.
BSEE's regulations for decommissioning pipelines are found at 30 CFR
250.1700 through 250.1704 and 250.1750 through 250.1754.
---------------------------------------------------------------------------
\2\ ROW pipelines also include all DOI pipelines not defined as
lease term pipelines. See 30 CFR 250.1001 for definitions of lease
term pipelines and ROW pipelines.
---------------------------------------------------------------------------
As of August 1, 2016, BSEE regulates 4,842 active pipeline segments
\3\ (totaling approximately 20,837 miles) and 1,553 out-of-service
pipeline segments (totaling approximately 2,249 miles). In addition,
BSEE has regulatory authority over 8,832 decommissioned pipeline
segments, as well as 825 pipeline segments that have been approved for
decommissioning.
---------------------------------------------------------------------------
\3\ BSEE assigns pipeline segment numbers as specific pipeline
identifiers.
---------------------------------------------------------------------------
BSEE's requirements for decommissioning a pipeline are found at
Sec. Sec. 250.1750-250.1754. Pursuant to Sec. 250.1751, requirements
for decommissioning a pipeline in place include: pigging (to remove any
residual hydrocarbons from the pipeline), unless the Regional
Supervisor determines that pigging is not practical; flushing and
filling the pipeline with seawater; cutting and plugging the ends of
the pipeline; and burying the ends at least 3 feet below the seafloor
or covering the ends with protective concrete mats, if required by the
Regional Supervisor. Section 250.1751(g) also requires removal of all
valves and other fittings that could unduly interfere with other uses
of the OCS.
In addition, under Sec. 250.1754, BSEE has the authority to
require that lessees, owners of operating rights, and ROW holders
remove pipelines previously decommissioned in place if and when the
Regional Supervisor determines that the pipeline is an obstruction.
BSEE's requirements for decommissioning by removing all or part of
a pipeline are found at Sec. 250.1752 and include, in part, pigging
and flushing the pipeline (unless the Regional Supervisor determines
that pigging is not practical) before removal.
Purpose of Proposed Amendment
In 2009, BSEE's predecessor agency, the Minerals Management Service
(MMS), proposed new reporting requirements related to lease term
pipelines when MMS approves a lease assignment. (See 74 FR 25177 (May
27, 2009).) MMS also proposed to require the submission of information
on expenditures for decommissioning of wells, platforms and other
facilities and for site clearance. (See id.)
In a final rule published on December 4, 2015, BSEE amended its
regulations to require lessees and owners of operating rights to submit
summaries of actual decommissioning expenditures for certain required
decommissioning activities within 120 days after completion of each
such activity. (See 80 FR 75806.) Specifically, the final rule required
reporting of summaries of expenditures for plugging wells, removing
platforms and other facilities, and clearing obstructions from sites.
In addition, the final rule authorized BSEE to require additional
supporting information regarding specific decommissioning costs on a
case-by-case basis. The final rule was codified at 30 CFR 250.1704(h)
and (i).
Effective July 28, 2016, BSEE's Well Control final rule revised
paragraph (g) in Sec. 250.1704, added a new paragraph (h), and
redesignated existing paragraphs (h) and (i) as paragraphs (i) and (j),
respectively. (See 81 FR 25888 (April 29, 2016).) The Well Control rule
did not, however, affect the substance of those decommissioning cost
reporting provisions.
On April 27, 2016, BSEE issued a Notice to Lessees and Operators
(NTL), No. 2016-N03, Reporting Requirements for Decommissioning
Expenditures on the OCS, providing guidance and clarification regarding
the submission of the decommissioning cost summaries required by Sec.
250.1704(i).
BSEE did not include reporting of expenditures for pipeline
decommissioning in the December 2015 final rule because the 2009
proposed rule did not expressly refer to pipeline decommissioning
expenditures. BSEE has determined, however, that accurate information
about expenditures incurred for pipeline decommissioning activities is
needed to better estimate future decommissioning costs for those
activities.
As BSEE explained in the December 2015 final rule, with regard to
expenditures for other types of decommissioning activities under Sec.
250.1704(i), summaries of actual decommissioning expenditures will help
BSEE better estimate future decommissioning costs. (See 80 FR 75806.)
For the same reason, summaries of actual pipeline decommissioning
expenditures will help BSEE better estimate future decommissioning
costs. In addition, BSEE will share its decommissioning cost estimates
with the Bureau of Ocean Energy Management (BOEM) for use in setting
necessary financial assurance levels to (1) minimize the possibility
that the government will incur future financial liability for
decommissioning pipelines where the responsible party has failed to
carry out the required decommissioning; and (2) enhance the accuracy of
financial assurance requirements necessary to cover future
decommissioning liabilities.
[[Page 53350]]
Accordingly, BSEE proposes to expand the scope of Sec. 250.1704(i)
to require that lessees, owners of operating rights, and pipeline ROW
holders submit certified summaries of actual expenditures for
decommissioning of pipelines.\4\ This proposal would also authorize
Regional Supervisors, under Sec. 250.1704(j), to require the
submission of additional information, on a case-by-case basis, to
support summaries of pipeline decommissioning expenditures submitted
under Sec. 250.1704(i). This proposal rule would not otherwise revise
the existing decommissioning cost reporting provisions.
---------------------------------------------------------------------------
\4\ BSEE recognizes that a designated operator may submit the
required summary of decommissioning costs on behalf of a lessee.
---------------------------------------------------------------------------
Procedural Matters
Regulatory Planning and Review (Executive Orders 12866 and 13563)
Executive Order (E.O.) 12866 provides that OMB, Office of
Information and Regulatory Affairs (OIRA), will review all significant
rules. BSEE has determined that this proposed rule would not be a
significant regulatory action as defined by section 3(f) of E.O. 12866
because:
--It is not expected to have an annual effect on the economy of $100
million or more;
--It would not adversely affect in a material way the economy,
productivity, competition, jobs, the environment, public health or
safety, or State, local, or tribal governments or communities;
--It would not create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency;
--It would not materially alter the budgetary impact of entitlements,
grants, user fees, or loan programs, or the rights or obligations of
their recipients; and
--It would 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.
Accordingly, BSEE has not prepared an economic analysis beyond the
analysis required under the Paperwork Reduction Act, and OIRA has not
reviewed this proposed rule.
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to promote
predictability, to reduce uncertainty, and to use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
E.O. 13563 directs agencies to consider regulatory approaches that
reduce burdens and maintain flexibility and freedom of choice for the
public where these approaches are relevant, feasible, and consistent
with regulatory objectives. It also emphasizes that regulations must be
based on the best available science and that the rulemaking process
must allow for public participation and an open exchange of ideas. BSEE
developed this proposed rule in a manner consistent with these
requirements.
Regulatory Flexibility Act (RFA)
BSEE certifies that this proposed rule would not have a significant
economic effect on a substantial number of small entities under the RFA
(5 U.S.C. 601 et seq.). This proposed rule would potentially affect
offshore lessees, owners of operating rights and other operators, and
pipeline ROW holders who perform decommissioning activities under 30
CFR part 250, subpart Q. In the December 2015 final rule, using 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), we estimated that
a substantial number, about 90 of the 130 active companies potentially
affected by that rule (i.e., lessees and operators), would be
considered small entities. (See 80 FR 75808.) However, we concluded
that the final rule would not have a significant economic effect on
those small entities because the cost of requiring decommissioning cost
summaries is not significant. (See id.)
This proposed rule could affect some additional companies (i.e.,
ROW holders that were not covered by the December 2015 final rule as
lessees or owners of operating rights) that would be required to submit
pipeline decommissioning cost summaries. Using more recent information
than was available to us when we published the December 2015 final
rule, we estimate that the proposal to require reporting of pipeline
decommissioning costs could affect approximately 111 lessees, owners of
operating rights, and ROW holders that currently own or control DOI
pipelines, including many companies already covered by the December
2015 final rule. Of these 111 potentially affected entities, we
estimate that a substantial number (66 companies) are small entities.
Therefore, this proposed rule would affect a substantial number of
small entities.
However, the proposed rule would not impose significant economic
impacts on the potentially affected small entities. The proposed
requirement to submit pipeline decommissioning cost summaries would not
result in significant additional costs or burdens for any affected
entity. As indicated in the Paperwork Reduction Act section of this
document, the annual burden of the proposed rule is estimated to be
only 500 hours in total for all affected entities (whether or not
small) to prepare and submit their pipeline decommissioning summaries.
Accordingly, since the changes reflected in the proposed rule would not
have a significant economic effect on a substantial number of small
entities, the RFA does not require BSEE to prepare a regulatory
flexibility analysis for this proposed rule.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This proposed rule is not a major rule under the SBREFA (5 U.S.C.
804(2)). This rule would not:
--Have an annual effect on the economy of $100 million or more;
--Cause a major increase in costs or prices for consumers, individual
industries, Federal, State, or local government agencies, or geographic
regions; or
--Have significant adverse effects on competition, employment,
investment, productivity, innovation, or the ability of U.S.-based
enterprises to compete with foreign-based enterprises.
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 BSEE, call 1-888-
734-3247. You may comment to the Small Business Administration (SBA)
without fear of retaliation. Allegations of discrimination/retaliation
filed with the SBA will be investigated for appropriate action.
Unfunded Mandates Reform Act of 1995
This proposed rule would not impose an unfunded mandate on State,
Tribal, or local governments or the private sector of more than $100
million per year. The proposed rule also would not have a significant
or unique effect on State, Tribal, or local governments or the private
sector. Thus, a statement containing the information required by
[[Page 53351]]
the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not
required.
Takings Implication Assessment (E.O. 12630)
Under the criteria in E.O. 12630, this proposed rule would not
effect a taking or otherwise have takings implications. This proposed
rule is not a governmental action capable of interference with
constitutionally protected property rights. Therefore, a Takings
Implication Assessment is not required.
Federalism (E.O. 13132)
Under the criteria in E.O. 13132, this proposed rule would not have
federalism implications. This proposed rule would not have a
substantial direct effect on the States or the relationship between the
Federal and State governments. To the extent that State and local
governments have a role in OCS activities, this proposed rule would not
affect that role. Accordingly, a federalism summary impact statement is
not required.
Civil Justice Reform (E.O. 12988)
This proposed rule complies with the requirements of E.O. 12988,
Civil Justice Reform (February 7, 1996). Specifically, this rule:
--Meets the criteria of section 3(a) of E.O. 12988 requiring that all
regulations be reviewed to eliminate drafting errors and ambiguity and
be written to minimize litigation; and
--Meets the criteria of section 3(b)(2) of E.O. 12988 requiring that
all regulations be written in clear language and contain clear legal
standards.
Consultation With Indian Tribal Governments (E.O. 13175)
We have evaluated this proposed rule under the Department's tribal
consultation policy and under the criteria in E.O. 13175 and have
determined that it would have no substantial direct effects on
federally recognized Indian tribes. As a result, consultation under the
Department's tribal consultation policy is not required.
Paperwork Reduction Act (PRA)
This proposed rule contains an information collection (IC) that
will be submitted to the OMB for review and approval under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). As part of
our continuing effort to reduce paperwork and respondent burdens, BSEE
invites the public and other Federal agencies to comment on any aspect
of the reporting and recordkeeping burden. If you wish to comment on
the IC aspects of this proposed rule, you may send your comments
directly to OMB and send a copy of your comments to the Regulations and
Standards Branch (for more information, see the DATES and ADDRESSES
section of this document). Please refer to Decommissioning Costs for
Pipelines, 1014-AA32, in your comments. BSEE specifically requests
comments concerning the need for the information, its practical
utility, the accuracy of the agency's burden estimate, and ways to
minimize the burden. You may obtain a copy of the supporting statement
for the new collection of information by contacting the Bureau's
Information Collection Clearance Officer at (703) 787-1607. To see a
copy of the entire IC request submitted to OMB, go to https://www.reginfo.gov (select Information Collection Review, Currently Under
Review).
The title of the collection of information for this proposed rule
is 30 CFR part 250, subpart Q, Decommissioning Costs for Pipelines. As
with the other decommissioning expenditure information currently
required to be submitted to BSEE under Sec. 250.1704(i), summaries of
actual pipeline decommissioning expenditures will help BSEE to better
estimate future decommissioning costs for OCS pipelines. BOEM will then
use BSEE's future pipeline decommissioning cost estimates to set
necessary financial assurance levels to minimize or eliminate the
possibility that the government will incur liability for future
pipeline decommissioning.
Potential respondents comprise Federal OCS oil, gas, and sulfur
lessees, owners of operating rights, and pipeline ROW holders.
Responses to this collection are mandatory. The frequency of response
is on occasion. The IC does not include questions of a sensitive
nature. BSEE will protect confidential commercial and proprietary
information according to FOIA (5 U.S.C. 552) and its implementing
regulations (43 CFR part 2), and 30 CFR 250.197 (Data and information
to be made available to the public or for limited inspection), and 30
CFR part 252 (OCS Oil and Gas Information Program).
Once the requirements of this proposed rulemaking have been
codified, BSEE will consolidate these additional burden hours into the
primary collection for 30 CFR part 250, subpart Q, under OMB Control
Number 1014-0010 (expiration 10/31/16; 29,437 burden hours and
$2,152,644 non-hour cost burdens). There are no non-hour cost burdens
associated with this proposed rulemaking. The following table is a
breakdown of the burden estimate:
Burden Table
----------------------------------------------------------------------------------------------------------------
Reporting and
Citation 30 CFR 250 recordkeeping Hour burden Average number of Annual burden
requirements annual responses hours
----------------------------------------------------------------------------------------------------------------
250.1704(i)...................... Submit to the Regional 1 500 pipeline 500
Supervisor a complete summaries.
summary of expenditures
incurred within 120
days after completion
of each decommissioning
activity (including
permanently plugging
any well, removal of
any platform or
facility,
decommissioning of
pipelines, etc.).
-------------------------------------
250.1704(i)...................... Submit certified Exempt from the PRA under 5 CFR 0
statement attesting to 1320.3(i)(1).
accuracy of the summary
for expenditures
incurred.
----------------------------------------------------
Total........................ ........................ .............. 500 responses...... 500
----------------------------------------------------------------------------------------------------------------
An agency may not conduct or sponsor and you are not required to
respond to, a collection of information unless it displays a currently
valid OMB control number.
[[Page 53352]]
National Environmental Policy Act of 1969 (NEPA)
This proposed rule meets the criteria set forth in 516 Departmental
Manual (DM) 15.4C(1) for a categorical exclusion because it involves
modification of existing regulations, the impacts of which would be
limited to administrative or economic effects with minimal
environmental impacts.
We have also analyzed this proposed rule to determine if it meets
any of the extraordinary circumstances set forth in 43 CFR 46.215 that
would require an environmental assessment or an environmental impact
statement for actions otherwise eligible for a categorical exclusion.
We have concluded that this proposed rule would not meet any of the
criteria for extraordinary circumstances.
Data Quality Act
In developing this proposed rule, we did not conduct or use a
study, experiment, or survey requiring peer review under the Data
Quality Act (44 U.S.C. 3516 et seq.,
Public Law 106-554, app. C Sec. 515, 114 Stat. 2763, 2763A-153-
154).
Effects on the Nation's Energy Supply (E.O. 13211)
This proposed rule would not be a significant energy action under
E.O. 13211 because:
--It is not a significant regulatory action under E.O. 12866;
--It is not likely to have a significant adverse effect on the supply,
distribution or use of energy; and
--It has not been designated as a significant energy action by the
Administrator of OIRA.
Clarity of This Regulation (E.O. 12866 and E.O. 12988)
We are required by E.O. 12866 and E.O. 12988, and by the
Presidential Memorandum of June 1, 1998, to write all rules in plain
language. This means that each rule we publish must:
--Be logically organized;
--Use the active voice to address readers directly;
--Use clear language rather than jargon;
--Be divided into short sections and sentences; and
--Use lists and tables wherever possible.
If you feel that we have not met these requirements, send us
comments by one of the methods listed in the ADDRESSES section. To
better help us meet these requirements, your comments should be as
specific as possible. For example, you should tell us the numbers of
the sections or paragraphs that you find unclear, which sections or
sentences are too long, and the sections where you feel lists or tables
would be useful.
List of Subjects in 30 CFR Part 250
Administrative practice and procedure, Continental Shelf,
Environmental impact statements, Environmental protection, Government
contracts, Investigations, Oil and gas exploration, Penalties,
Reporting and recordkeeping requirements, Sulfur.
Janice M. Schneider,
Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, BSEE proposes to amend 30
CFR part 250 as follows:
PART 250--OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
0
1. The authority citation for part 250 continues to read as follows:
Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C.
1321(j)(1)(C), 43 U.S.C. 1334.
0
2. Amend Sec. 250.1704 by revising paragraphs (i) and (j) in the table
to read as follows:
Sec. 250.1704 What decommissioning applications and reports must I
submit and when must I submit them?
* * * * *
------------------------------------------------------------------------
Decommissioning applications
and reports When to submit Instructions
------------------------------------------------------------------------
* * * * * * *
(i) A certified summary of Within 120 days Submit to the
expenditures for permanently after completion Regional Supervisor
plugging any well, removal of of each a complete summary
any platform or other decommissioning of expenditures
facility, clearance of any activity actually incurred
site after wells have been specified in for each
plugged or platforms or this paragraph. decommissioning
facilities removed, and activity (including,
decommissioning of pipelines. but not limited to,
the use of rigs,
vessels, equipment,
supplies and
materials;
transportation of
any kind; personnel;
and services).
Include in, or
attach to, the
summary a certified
statement by an
authorized
representative of
your company
attesting to the
truth, accuracy and
completeness of the
summary. The
Regional Supervisor
may provide specific
instructions or
guidance regarding
how to submit the
certified summary.
(j) If requested by the Within a The Regional
Regional Supervisor, reasonable time Supervisor will
additional information in as determined by review the summary
support of any the Regional and may provide
decommissioning activity Supervisor. specific
expenditures included in a instructions or
summary submitted under guidance regarding
paragraph (i) of this section. the submission of
additional
information
(including, but not
limited to, copies
of contracts and
invoices), if
requested, to
complete or
otherwise support
the summary.
------------------------------------------------------------------------
[[Page 53353]]
[FR Doc. 2016-19057 Filed 8-11-16; 8:45 am]
BILLING CODE 4310-VH-P
