CFR-2018-title30-vol2 (Regulaciones USA) PDF

Title 30
Mineral Resources
Parts 200 to 699
Revised as of July 1, 2018
Containing a codification of documents

of general applicability and future effect
As of July 1, 2018
Published by the Office of the Federal Register

National Archives and Records Administration
as a Special Edition of the Federal Register
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Table of contents
Page
Explanation ................................................................................................ v
Title 30:
Chapter II—Bureau of Safety and Environmental Enforcement,

Department of the Interior .......................................................... 3
Chapter IV—Geological Survey, Department of the Interior .......... 335
Chapter V—Bureau of Ocean Energy Management, Department of

the Interior .................................................................................. 347
Finding Aids:
Table of CFR Titles and Chapters ....................................................... 635
Alphabetical List of Agencies Appearing in the CFR ......................... 655
List of CFR Sections Affected ............................................................. 665

iii
Cite this Code: CFR
To cite the regulations in

this volume use title,
part and section num-
ber. Thus, 30 CFR 203.0
refers to title 30, part
203, section 0.
iv
Explanation
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Each volume of the Code is revised at least once each calendar year and issued
on a quarterly basis approximately as follows:
Title 1 through Title 16..............................................................as of January 1
Title 17 through Title 27 .................................................................as of April 1
Title 28 through Title 41 ..................................................................as of July 1
Title 42 through Title 50 .............................................................as of October 1
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vi
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OLIVER A. POTTS,
Director,
Office of the Federal Register
July 1, 2018
vii
THIS TITLE
Title 30—MINERAL RESOURCES is composed of three volumes. The parts in these

volumes are arranged in the following order: parts 1—199, parts 200—699, and part
700 to end. The contents of these volumes represent all current regulations codi-
fied under this title of the CFR as of July 1, 2018.
For this volume, Cheryl E. Sirofchuck was Chief Editor. The Code of Federal
Regulations publication program is under the direction of John Hyrum Martinez,
assisted by Stephen J. Frattini.
ix
Title 30—Mineral
Resources
(This book contains parts 200 to 699)
Part
CHAPTER II—Bureau of Safety and Environmental Enforce-

ment, Department of the Interior ...................................... 203
CHAPTER IV—Geological Survey, Department of the Interior 401
CHAPTER V—Bureau of Ocean Energy Management, Depart-
ment of the Interior ........................................................... 519
CHAPTER II—BUREAU OF SAFETY AND
ENVIRONMENTAL ENFORCEMENT, DEPARTMENT
OF THE INTERIOR
SUBCHAPTER A—MINERALS REVENUE MANAGEMENT
Part Page
200–202 [Reserved]
203 Relief or reduction in royalty rates ........................ 5
219 [Reserved]
SUBCHAPTER B—OFFSHORE
250 Oil and gas and sulphur operations in the Outer

Continental Shelf ................................................. 44
251 Geological and geophysical (G&G) explorations of
the Outer Continental Shelf ................................. 286
252 Outer Continental Shelf (OCS) Oil and Gas Infor-
mation Program ................................................... 291
253 [Reserved]
254 Oil-spill response requirements for facilities lo-
cated seaward of the coast line ............................ 296
256 Leasing of sulphur or oil and gas in the Outer Con-
tinental Shelf ....................................................... 311
270 Nondiscrimination in the Outer Continental Shelf 313
280 Prospecting for minerals other than oil, gas, and
sulphur on the Outer Continental Shelf ............... 315
281 [Reserved]
282 Operations in the Outer Continental Shelf for min-
erals other than oil, gas, and sulphur .................. 316
285 [Reserved]
SUBCHAPTER C—APPEALS
290 Appeal procedures ................................................... 327

291 Open and nondiscriminatory access to oil and gas
pipelines under the Outer Continental Shelf

Lands Act ............................................................. 328
PARTS 200–202 [RESERVED] 203.43 To which production do I apply the

RSV earned from qualified deep wells or
qualified phase 1 ultra-deep wells on my
PART 203—RELIEF OR REDUCTION lease?
IN ROYALTY RATES 203.44 What administrative steps must I
take to use the royalty suspension vol-
Subpart A—General Provisions ume?
203.45 If I drill a certified unsuccessful well,
Sec. what royalty relief will my lease earn?
203.0 What definitions apply to this part? 203.46 To which production do I apply the
203.1 What is BSEE’s authority to grant royalty suspension supplements from
royalty relief? drilling one or two certified unsuccessful
203.2 How can I obtain royalty relief? wells on my lease?
203.3 Do I have to pay a fee to request roy- 203.47 What administrative steps do I take
alty relief? to obtain and use the royalty suspension
203.4 How do the provisions in this part supplement?
apply to different types of leases and 203.48 Do I keep royalty relief if prices rise
projects? significantly?
203.5 What is BSEE’s authority to collect 203.49 May I substitute the deep gas drilling
information? provisions in this part for the deep gas
royalty relief provided in my lease
Subpart B—OCS Oil, Gas, and Sulfur terms?
General ROYALTY RELIEF FOR END-OF-LIFE LEASES
ROYALTY RELIEF FOR DRILLING ULTRA-DEEP 203.50 Who may apply for end-of-life royalty
WELLS ON LEASES NOT SUBJECT TO DEEP relief?
WATER ROYALTY RELIEF 203.51 How do I apply for end-of-life royalty
relief?
203.30 Which leases are eligible for royalty 203.52 What criteria must I meet to get re-
relief as a result of drilling a phase 2 or lief?
phase 3 ultra-deep well? 203.53 What relief will BSEE grant?
203.31 If I have a qualified phase 2 or quali- 203.54 How does my relief arrangement for
fied phase 3 ultra-deep well, what royalty an oil and gas lease operate if prices rise
relief would that well earn for my lease? sharply?
203.32 What other requirements or restric- 203.55 Under what conditions can my end-of-
tions apply to royalty relief for a quali- life royalty relief arrangement for an oil
fied phase 2 or phase 3 ultra-deep well? and gas lease be ended?
203.33 To which production do I apply the 203.56 Does relief transfer when a lease is
RSV earned by qualified phase 2 and assigned?
phase 3 ultra-deep wells on my lease or in
my unit? ROYALTY RELIEF FOR PRE-ACT DEEP WATER
203.34 To which production may an RSV LEASES AND FOR DEVELOPMENT AND EXPAN-
earned by qualified phase 2 and phase 3 SION PROJECTS
ultra-deep wells on my lease not be ap-
203.60 Who may apply for royalty relief on a
plied?
case-by-case basis in deep water in the
203.35 What administrative steps must I
Gulf of Mexico or offshore of Alaska?
take to use the RSV earned by a quali- 203.61 How do I assess my chances for get-
fied phase 2 or phase 3 ultra-deep well? ting relief?
203.36 Do I keep royalty relief if prices rise 203.62 How do I apply for relief?
significantly? 203.63 Does my application have to include
ROYALTY RELIEF FOR DRILLING DEEP GAS all leases in the field?
WELLS ON LEASES NOT SUBJECT TO DEEP 203.64 How many applications may I file on
WATER ROYALTY RELIEF a field or a development project?
203.65 How long will BSEE take to evaluate
203.40 Which leases are eligible for royalty my application?
relief as a result of drilling a deep well or 203.66 What happens if BSEE does not act in
a phase 1 ultra-deep well? the time allowed?
203.41 If I have a qualified deep well or a 203.67 What economic criteria must I meet
qualified phase 1 ultra-deep well, what to get royalty relief on an authorized
royalty relief would my lease earn? field or project?

203.42 What conditions and limitations 203.68 What pre-application costs will BSEE
apply to royalty relief for deep wells and consider in determining economic viabil-
phase 1 ultra-deep wells? ity?
§ 203.0 30 CFR Ch. II (7–1–18 Edition)
203.69 If my application is approved, what Subpart I—OCS Sulfur [Reserved]
royalty relief will I receive?
203.70 What information must I provide
AUTHORITY: 25 U.S.C. 396 et seq.; 25 U.S.C.
after BSEE approves relief?
396a et seq.; 25 U.S.C. 2101 et seq.; 30 U.S.C. 181
203.71 How does BSEE allocate a field’s sus-
et seq.; 30 U.S.C. 351 et seq.; 30 U.S.C. 1001 et
pension volume between my lease and
seq.; 30 U.S.C. 1701 et seq.; 31 U.S.C. 9701; 42
other leases on my field?
U.S.C. 15903–15906; 43 U.S.C. 1301 et seq.; 43
203.72 Can my lease receive more than one
U.S.C. 1331 et seq.; and 43 U.S.C. 1801 et seq.
suspension volume?
203.73 How do suspension volumes apply to SOURCE: 76 FR 64462, Oct. 18, 2011, unless
natural gas? otherwise noted.
203.74 When will BSEE reconsider its deter-
mination?
203.75 What risk do I run if I request a rede- Subpart A—General Provisions
termination?
203.76 When might BSEE withdraw or re- § 203.0 What definitions apply to this
duce the approved size of my relief? part?
203.77 May I voluntarily give up relief if
conditions change?
Authorized field means a field:
203.78 Do I keep relief approved by BSEE (1) Located in a water depth of at
under this part for my lease, unit or least 200 meters and in the Gulf of Mex-
project if prices rise significantly? ico (GOM) west of 87 degrees, 30 min-
203.79 How do I appeal BSEE’s decisions re- utes West longitude;
lated to royalty relief for a deepwater (2) That includes one or more pre-Act
lease or a development or expansion
project?
leases; and
203.80 When can I get royalty relief if I am (3) From which no current pre-Act
not eligible for royalty relief under other lease produced, other than test produc-
sections in the subpart? tion, before November 28, 1995.
Certified unsuccessful well means an
REQUIRED REPORTS
original well or a sidetrack with a side-
203.81 What supplemental reports do roy- track measured depth (i.e., length) of
alty-relief applications require? at least 10,000 feet, on your lease that:
203.82 What is BSEE’s authority to collect
this information? (1) You begin drilling on or after
203.83 What is in an administrative informa- March 26, 2003, and before May 3, 2009,
tion report? on a lease that is located in water part-
203.84 What is in a net revenue and relief ly or entirely less than 200 meters deep
justification report? and that is not a non-converted lease,
203.85 What is in an economic viability and or on or after May 18, 2007, and before
relief justification report? May 3, 2013, on a lease that is located
203.86 What is in a G&G report?
203.87 What is in an engineering report?
in water entirely more than 200 meters
203.88 What is in a production report? and entirely less than 400 meters deep;
203.89 What is in a cost report? (2) You begin drilling before your
203.90 What is in a fabricator’s confirmation lease produces gas or oil from a well
report? with a perforated interval the top of
203.91 What is in a post-production develop- which is at least 18,000 feet true
ment report? vertical depth subsea (TVD SS), (i.e.,
Subpart C—Federal and Indian Oil below the datum at mean sea level);
[Reserved] (3) You drill to at least 18,000 feet
TVD SS with a target reservoir on your
Subpart D—Federal and Indian Gas lease, identified from seismic and re-
[Reserved] lated data, deeper than that depth;
(4) Fails to meet the producibility re-
Subpart E—Solid Minerals, General quirements of 30 CFR part 550, subpart
[Reserved] A, and does not produce gas or oil, or
meets those producibility requirements
Subpart F [Reserved]
and Bureau of Ocean Energy Manage-
Subpart G—Other Solid Minerals ment (BOEM) agrees it is not commer-
cially producible; and
[Reserved]
(5) For which you have provided the
Subpart H—Geothermal Resources notices and information required under
[Reserved] § 203.47.
Safety & Environmental Enforcement, Interior § 203.0
Complete application means an origi- (2) The project must be located on ei-
nal and two copies of the six reports ther:
consisting of the data specified in (i) A pre-Act lease in the GOM, or a
§§ 203.81, 203.83, and 203.85 through lease in the GOM issued in a sale held
203.89, along with one set of digital in- after November 28, 2000, located wholly
formation, which Bureau of Safety and west of 87 degrees, 30 minutes West lon-
Environmental Enforcement (BSEE) gitude; or
has reviewed and found complete. (ii) A lease in a planning area off-
Deep well means either an original shore Alaska.
well or a sidetrack with a perforated (3) On a pre-Act lease in the GOM,
interval the top of which is at least the project:
15,000 feet TVD SS and less than 20,000 (i) Must significantly increase the ul-
feet TVD SS. A deep well subsequently timate recovery of resources from one
re-perforated at less than 15,000 feet or more reservoirs that have not pre-
TVD SS in the same reservoir is still a viously produced (extending recovery
deep well. from reservoirs already in production
Determination means the binding deci- does not constitute a significant in-
sion by BSEE on whether your field crease); and
qualifies for relief or how large a roy- (ii) Must involve a substantial cap-
alty-suspension volume must be to ital investment (e.g., fixed-leg plat-
make the field economically viable. form, subsea template and manifold,
Development project means a project tension-leg platform, multiple well
to develop one or more oil or gas res- project, etc.).
ervoirs located on one or more contig- (4) For a lease issued in a planning
uous leases that have had no produc- area offshore Alaska, or in the GOM
tion (other than test production) before after November 28, 2000, the project
the current application for royalty re- must involve a new well drilled into a
lief and are either: reservoir that has not previously pro-
(1) Located in a planning area off- duced.
shore Alaska; or (5) On a lease in the GOM, the project
(2) Located in the GOM in a water must not include a reservoir the pro-
depth of at least 200 meters and wholly duction from which an RSV under
west of 87 degrees, 30 minutes West lon- §§ 203.30 through 203.36 or §§ 203.40
gitude, and were issued in a sale held through 203.48 would be applied.
after November 28, 2000. Fabrication (or start of construction)
Draft application means the prelimi- means evidence of an irreversible com-
nary set of information and assump- mitment to a concept and scale of de-
tions you submit to seek a nonbinding velopment. Evidence includes copies of
assessment on whether a field could be a binding contract between you (as ap-
expected to qualify for royalty relief. plicant) and a fabrication yard, a letter
Eligible lease means a lease that: from a fabricator certifying that con-
(1) Is issued as part of an OCS lease tinuous construction has begun, and a
sale held after November 28, 1995, and receipt for the customary down pay-
before November 28, 2000; ment.
(2) Is located in the Gulf of Mexico in Field means an area consisting of a
water depths of 200 meters or deeper; single reservoir or multiple reservoirs
(3) Lies wholly west of 87 degrees, 30 all grouped on, or related to, the same
minutes West longitude; and general geological structural feature or
(4) Is offered subject to a royalty sus- stratigraphic trapping condition. Two
pension volume. or more reservoirs may be in a field,
Expansion project means a project separated vertically by intervening im-
that meets the following requirements: pervious strata or laterally by local
(1) You must propose the project in a geologic barriers, or both.
(BOEM) Development and Production Lease means a lease or unit.
Plan, a BOEM Development Operations New production means any production
Coordination Document (DOCD), or a from a current pre-Act lease from
BOEM Supplement to a DOCD, ap- which no royalties are due on produc-

proved by the Secretary of the Interior tion, other than test production, before
after November 28, 1995. November 28, 1995. Also, it means any
§ 203.0 30 CFR Ch. II (7–1–18 Edition)
additional production resulting from that meets the requirements to be a

new lease-development activities on a certified unsuccessful well.
lease issued in a sale after November Phase 2 ultra-deep well means an
28, 2000, or a current pre-Act lease ultra-deep well for which drilling began
under a BOEM DOCD or a BOEM Sup- on or after May 18, 2007; and that either
plement approved by the Secretary of meets the requirements to be a cer-
the Interior after November 28, 1995. tified unsuccessful well or that begins
Nonbinding assessment means an opin- production:
ion by BSEE of whether your field (1) Before the date which is 5 years
could qualify for royalty relief. It is after the lease issuance date on a non-
based on your draft application and converted lease; or
does not entitle the field to relief. (2) Before May 3, 2009, on all other
Non-converted lease means a lease lo- leases located in water partly or en-
cated partly or entirely in water less tirely less than 200 meters deep; or
than 200 meters deep issued in a lease (3) Before May 3, 2013, on a lease that
sale held after January 1, 2001, and be- is located in water entirely more than
fore January 1, 2004, whose original 200 meters and entirely less than 400
lease terms provided for an RSV for meters deep.
deep gas production and the lessee has Phase 3 ultra-deep well means an
not exercised the option under § 203.49 ultra-deep well for which drilling began
to replace the lease terms for royalty on or after May 18, 2007, and that be-
relief with those in § 203.0 and §§ 203.40 gins production:
through 203.48. (1) On or after the date which is 5
Original well means a well that is years after the lease issuance date on a
drilled without utilizing an existing non-converted lease; or
wellbore. An original well includes all (2) On or after May 3, 2009, on all
sidetracks drilled from the original other leases located in water partly or
wellbore either before the drilling rig entirely less than 200 meters deep; or
moves off the well location or after a (3) On or after May 3, 2013, on a lease
temporary rig move that BSEE agrees that is located in water entirely more
was forced by a weather or safety than 200 meters and entirely less than
threat and drilling resumes within 1 400 meters deep.
year. A bypass from an original well Pre-Act lease means a lease that:
(e.g., drilling around material blocking (1) Results from a sale held before
the hole or to straighten crooked November 28, 1995;
holes) is part of the original well. (2) Is located in the GOM in water
Participating area means that part of depths of 200 meters or deeper; and
the unit area that BSEE determines is (3) Lies wholly west of 87 degrees, 30
reasonably proven by drilling and com- minutes West longitude.
pletion of producible wells, geological Production means all oil, gas, and
and geophysical information, and engi- other relevant products you save, re-
neering data to be capable of producing move, or sell from a tract or those
hydrocarbons in paying quantities. quantities allocated to your tract
Performance conditions mean min- under a unitization formula, as meas-
imum conditions you must meet, after ured for the purposes of determining
we have granted relief and before pro- the amount of royalty payable to the
duction begins, to remain qualified for United States.
that relief. If you do not meet each one Project means any activity that re-
of these performance conditions, we quires at least a permit to drill.
consider it a change in material fact Qualified deep well means:
significant enough to invalidate our (1) On a lease that is located in water
original evaluation and approval. partly or entirely less than 200 meters
Phase 1 ultra-deep well means an deep that is not a non-converted lease,
ultra-deep well on a lease that is lo- a deep well for which drilling began on
cated in water partly or entirely less or after March 26, 2003, that produces
than 200 meters deep for which drilling natural gas (other than test produc-
began before May 18, 2007, and that be- tion), including gas associated with oil
gins production before May 3, 2009, or production, before May 3, 2009, and for
which you have met the requirements system and segregated from other such
prescribed in § 203.44; accumulations.
(2) On a non-converted lease, a deep Royalty suspension (RS) lease means a
well that produces natural gas (other lease that:
than test production) before the date (1) Is issued as part of an OCS lease
which is 5 years after the lease sale held after November 28, 2000;
issuance date from a reservoir that has (2) Is in locations or planning areas
not produced from a deep well on any specified in a particular Notice of OCS
lease; or Lease Sale offering that lease; and
(3) On a lease that is located in water (3) Is offered subject to a royalty sus-
entirely more than 200 meters but en- pension specified in a Notice of OCS
tirely less than 400 meters deep, a deep Lease Sale published in the FEDERAL
well for which drilling began on or
REGISTER.
after May 18, 2007, that produces nat-
ural gas (other than test production), Royalty suspension supplement (RSS)
including gas associated with oil pro- means a royalty suspension volume re-
duction before May 3, 2013, and for sulting from drilling a certified unsuc-
which you have met the requirements cessful well that is applied to future
prescribed in § 203.44. natural gas and oil production gen-
Qualified ultra-deep well means: erated at any drilling depth on, or allo-
(1) On a lease that is located in water cated under a BSEE-approved unit
partly or entirely less than 200 meters agreement to, the same lease.
deep that is not a non-converted lease, Royalty suspension volume (RSV)
an ultra-deep well for which drilling means a volume of production from a
began on or after March 26, 2003, that lease that is not subject to royalty
produces natural gas (other than test under the provisions of this part.
production), including gas associated Sidetrack means, for the purpose of
with oil production, and for which you this subpart, a well resulting from
have met the requirements prescribed drilling an additional hole to a new ob-
in § 203.35 or § 203.44, as applicable; or jective bottom-hole location by leaving
(2) On a lease that is located in water a previously drilled hole. A sidetrack
entirely more than 200 meters and en- also includes drilling a well from a
tirely less than 400 meters deep, or on platform slot reclaimed from a pre-
a non-converted lease, an ultra-deep viously drilled well or re-entering and
well for which drilling began on or deepening a previously drilled well. A
after May 18, 2007, that produces nat- bypass from a sidetrack (e.g., drilling
ural gas (other than test production), around material blocking the hole, or
including gas associated with oil pro- to straighten crooked holes) is part of
duction, and for which you have met the sidetrack.
the requirements prescribed in § 203.35. Sidetrack measured depth means the
Qualified well means either a quali- actual distance or length in feet a side-
fied deep well or a qualified ultra-deep track is drilled beginning where it
well. exits a previously drilled hole to the
Redetermination means our reconsid- bottom hole of the sidetrack, that is,
eration of our determination on roy- to its total depth.
alty relief because you request it after: Sunk costs for an authorized field
(1) We have rejected your applica- means the after-tax eligible costs that
tion; you (not third parties) incur for explo-
(2) We have granted relief but you ration, development, and production
want a larger suspension volume; from the spud date of the first dis-
(3) We withdraw approval; or covery on the field to the date we re-
(4) You renounce royalty relief. ceive your complete application for
Renounce means action you take to royalty relief. The discovery well must
give up relief after we have granted it be qualified as producible under 30 CFR
and before you start production. part 550, subpart A. Sunk costs include
Reservoir means an underground ac- the rig mobilization and material costs
cumulation of oil or natural gas, or for the discovery well that you in-
both, characterized by a single pressure curred before its spud date.
§ 203.1 30 CFR Ch. II (7–1–18 Edition)
Sunk costs for an expansion or develop- (c) Under 43 U.S.C. 1337(a)(3)(C), we

ment project means the after-tax eligi- may suspend royalties for designated
ble costs that you (not third parties) volumes of new production from any
incur for only the first well that en- lease if:
counters hydrocarbons in the res- (1) Your lease is in deep water (water
ervoir(s) included in the application at least 200 meters deep);
and that meets the producibility re- (2) Your lease is in designated areas
quirements under 30 CFR part 550, sub- of the GOM (west of 87 degrees, 30 min-
part A on each lease participating in utes West longitude);
the application. Sunk costs include rig (3) Your lease was acquired in a lease
mobilization and material costs for the sale held before the DWRRA (before
discovery wells that you incurred be- November 28, 1995);
fore their spud dates. (4) We find that your new production
Ultra-deep well means either an origi- would not be economic without royalty
nal well or a sidetrack completed with relief; and
a perforated interval the top of which (5) Your lease is on a field that did
is at least 20,000 feet TVD SS. An ultra- not produce before enactment of the
deep well subsequently re-perforated DWRRA, or if you propose a project to
less than 20,000 feet TVD SS in the significantly expand production under
same reservoir is still an ultra-deep a Development Operations Coordina-
well.
tion Document (DOCD) or a supple-
Withdraw means action we take on a
mentary DOCD, that the Bureau of
field that has qualified for relief if you
Ocean Energy Management (BOEM) ap-
have not met one or more of the per-
proved after November 28, 1995.
formance conditions.
(d) Under 42 U.S.C. 15904–15905, we
§ 203.1 What is BSEE’s authority to may suspend royalties for designated
grant royalty relief? volumes of gas production from deep
The Outer Continental Shelf (OCS) and ultra-deep wells on a lease if:
Lands Act, 43 U.S.C. 1337, as amended (1) Your lease is in shallow water
by the OCS Deep Water Royalty Relief (water less than 400 meters deep) and
Act (DWRRA), Public Law 104–58 and you produce from an ultra-deep well
the Energy Policy Act of 2005, Public (top of the perforated interval is at
Law 109–058 authorizes us to grant roy- least 20,000 feet TVD SS) or your lease
alty relief in four situations. is in waters entirely more than 200 me-
(a) Under 43 U.S.C. 1337(a)(3)(A), we ters and entirely less than 400 meters
may reduce or eliminate any royalty or deep and you produce from a deep well
a net profit share specified for an OCS (top of the perforated interval is at
lease to promote increased production. least 15,000 feet TVD SS);
(b) Under 43 U.S.C. 1337(a)(3)(B), we (2) Your lease is in the designated
may reduce, modify, or eliminate any area of the GOM (wholly west of 87 de-
royalty or net profit share to promote grees, 30 minutes west longitude); and
development, increase production, or (3) Your lease is not eligible for deep
encourage production of marginal re- water royalty relief.
sources on certain leases or categories
of leases. This authority is restricted § 203.2 How can I obtain royalty relief?
to leases in the GOM that are west of 87 We may reduce or suspend royalties
degrees, 30 minutes West longitude, for Outer Continental Shelf (OCS)
and in the planning areas offshore leases or projects that meet the cri-
Alaska. teria in the following table.
If you have a lease . . . And if you . . . Then we may grant you . . .
(a) With earnings that cannot sustain pro- Would abandon otherwise potentially re- A reduced royalty rate on current month-
duction (i.e., End-of-life lease), coverable resources but seek to in- ly production and a higher royalty rate
crease production by operating be- on additional monthly production (see
yond the point at which the lease is §§ 203.50 through 203.56).
economic under the existing royalty
rate,
10
If you have a lease . . . And if you . . . Then we may grant you . . .
(b) Located in a designated GOM deep Propose an expansion project and can A royalty suspension for a minimum pro-
water area (i.e., 200 meters or greater) demonstrate your project is uneco- duction volume plus any additional
and acquired in a lease sale held be- nomic without royalty relief, production large enough to make the
fore November 28, 1995, or after No- project economic (see §§ 203.60
vember 28, 2000, through 203.79).
(c) Located in a designated GOM deep Are on a field from which no current pre- A royalty suspension for a minimum pro-
water area and acquired in a lease sale Act lease produced (other than test duction volume plus any additional
held before November 28, 1995 (Pre- production) before November 28, volume needed to make the field eco-
Act lease), 1995, (Authorized field,) nomic (see §§ 203.60 through 203.79).
(d) Located in a designated GOM deep Propose a development project and can A royalty suspension for a minimum pro-
water area and acquired in a lease sale demonstrate that the suspension vol- duction volume plus any additional
held after November 28, 2000, ume, if any, for your lease is not volume needed to make your project
enough to make development eco- economic (see §§ 203.60 through
nomic, 203.79).
(e) Where royalty relief would recover sig- Are not eligible to apply for end-of-life or A royalty modification in size, duration,
nificant additional resources or, offshore deep water royalty relief, but show us or form that makes your lease or
Alaska or in certain areas of the GOM, you meet certain eligibility conditions, project economic (see § 203.80).
would enable development,
(f) Located in a designated GOM shallow Drill a deep well on a lease that is not A royalty suspension for a volume of gas
water area and acquired in a lease sale eligible for deep water royalty relief produced from successful deep and
held before January 1, 2001, or after and you have not previously produced ultra-deep wells, or, for certain unsuc-
January 1, 2004, or have exercised an oil or gas from a deep well or an ultra- cessful deep and ultra-deep wells, a
option to substitute for royalty relief in deep well, smaller royalty suspension for a vol-
your lease terms, ume of gas or oil produced by all wells
on your lease (see §§ 203.40 through
203.49).
(g) Located in a designated GOM shallow Drill and produce gas from an ultra-deep A royalty suspension for a volume of gas
water area, well on a lease that is not eligible for produced from successful ultra-deep
deep water royalty relief and you have and deep wells on your lease (see
not previously produced oil or gas §§ 203.30 through 203.36).
from an ultra-deep well,
(h) Located in planning areas offshore Propose an expansion project or pro- A royalty suspension for a minimum pro-
Alaska, pose a development project and can duction volume plus any additional
demonstrate that the project is uneco- volume needed to make your project
nomic without relief or that the sus- economic (see §§ 203.60, 203.62,
pension volume, if any, for your lease 203.67 through 203.70, 203.73, and
is not enough to make development 203.76 through 203.79).
economic,
§ 203.3 Do I have to pay a fee to re- (b) You must file all payments elec-
quest royalty relief? tronically through the Fees for Services
page on the BSEE Web site at http://
When you submit an application or
www.bsee.gov, and you must include a
ask for a preview assessment, you must
copy of the Pay.gov confirmation re-
include a fee to reimburse us for our
ceipt page with your application or as-
costs of processing your application or sessment.
assessment. Federal policy and law re-
quire us to recover the cost of services [76 FR 64462, Oct. 18, 2011, as amended at 81
that confer special benefits to identifi- FR 36148, June 6, 2016]
able non-Federal recipients. The Inde- § 203.4 How do the provisions in this
pendent Offices Appropriation Act (31 part apply to different types of
U.S.C. 9701), Office of Management and leases and projects?
Budget Circular A–25, and the Omnibus The tables in this section summarize
Appropriations Bill (Pub. L. 104–134, 110 the similar application and approval
Stat. 1321, April 26, 1996) authorize us provisions for the discretionary end-of-
to collect these fees. life and deep water royalty relief pro-
(a) We will specify the necessary fees grams in §§ 203.50 to 203.91. Because roy-
for each of the types of royalty relief alty relief for deep gas on leases not
applications and possible BSEE audits subject to deep water royalty relief, as
in a Notice to Lessees. We will periodi- provided for under §§ 203.40 to 203.48,
cally update the fees to reflect changes does not involve an application, its
in costs, as well as provide other infor- provisions do not parallel the other
mation necessary to administer roy- two royalty relief programs and are
alty relief. not summarized in this section.
11
§ 203.4 30 CFR Ch. II (7–1–18 Edition)
(a) We require the information ele- 203.62, and 203.81 through 203.89 for ap-
ments indicated by an X in the fol- plications for royalty relief.
lowing table and described in §§ 203.51,
Deep water
End-of-life
Information elements lease Expansion Pre-act Development
project lease project
(1) Administrative information report ..................................................... X X X X

(2) Net revenue and relief justification report (prescribed format) ....... X .................. ..................
(3) Economic viability and relief justification report (Royalty Suspen-
sion Viability Program (RSVP) model inputs justified with Geologi-
cal and Geophysical (G&G), Engineering, Production, & Cost re-
ports) .................................................................................................. ...................... X X X
(4) G&G report ...................................................................................... ...................... X X X
(5) Engineering report ........................................................................... ...................... X X X
(6) Production report ............................................................................. ...................... X X X
(7) Deep water cost report .................................................................... ...................... X X X
(b) We require the confirmation ele- 203.81, 203.90 and 203.91 to retain roy-
ments indicated by an X in the fol- alty relief.
lowing table and described in §§ 203.70,
Deep water
End-of-life
Confirmation elements lease Expansion Pre-act Development
(1) Fabricator’s confirmation report ....................................................... ...................... X X X

(2) Post-production development report approved by an independent
certified public accountant (CPA) * * * ............................................ ...................... X X X
(c) The following table indicates by our approval of your royalty relief ap-
an X, and §§ 203.50, 203.52, 203.60 and plication.
203.67 describe, the prerequisites for
Deep water
End-of-life
Approval conditions lease Pre-act Development
Expansion lease project
(1) At least 12 of the last 15 months have the required level of pro-
duction ............................................................................................... X
(2) Already producing ............................................................................ X ..................
(3) A producible well into a reservoir that has not produced before .... ...................... X X X
(4) Royalties for qualifying months exceed 75 percent of net revenue
(NR) ................................................................................................... X .................. ..................
(5) Substantial investment on a pre-Act lease (e.g., platform, subsea
template) ............................................................................................ ...................... .................. ..................
(6) Determined to be economic only with relief .................................... ...................... X X X
(d) The following table indicates by scribe, the prerequisites for a redeter-
an X, and §§ 203.52, 203.74, and 203.75 de- mination of our royalty relief decision.
Deep water
End-of-life
Redetermination conditions lease Expansion Pre-act Development
(1) After 12 months under current rate, criteria same as for approval X .................. ..................
(2) For material change in geologic data, prices, costs, or available
technology ......................................................................................... ...................... X X X
12
(e) The following table indicates by the characteristics of approved royalty

an X, and §§ 203.53 and 203.69 describe, relief.
Deep water
End-of-life
Relief rate and volume, subject to certain conditions lease Expansion Pre-act Development
(1) One-half pre-application effective lease rate on the qualifying

amount, 1.5 times pre-application effective lease rate on additional
production up to twice the qualifying amount, and the pre-applica-
tion effective lease rate for any larger volumes ................................ X .................. ..................
(2) Qualifying amount is the average monthly production for 12 quali-
fying months ...................................................................................... X .................. ..................
(3) Zero royalty rate on the suspension volume and the original lease
rate on additional production ............................................................. ...................... X X X
(4) Suspension volume is at least 17.5, 52.5 or 87.5 million barrels of
oil equivalent (MMBOE) .................................................................... ...................... .................. X
(5) Suspension volume is at least the minimum set in the Notice of
Sale, the lease, or the regulations .................................................... ...................... X .................. X
(6) Amount needed to become economic ............................................ ...................... X X X
(f) The following table indicates by circumstances under which we dis-

an X, and §§ 203.54 and 203.78 describe, continue your royalty relief.
Deep water
End-of-life
Full royalty resumes when lease Expansion Pre-act Development
(1) Average NYMEX price for last 12 months is at least 25 percent

above the average for the qualifying months. ................................... X .................. ..................
(2) Average NYMEX price for last calendar year exceeds $28/bbl or
$3.50/mcf, escalated by the gross domestic product (GDP) deflator
since 1994 ......................................................................................... ...................... X X
(3) Average prices for designated periods exceed levels we specify
in the Notice of Sale or the lease ..................................................... ...................... X .................. X
(g) The following table indicates by scribe, circumstances under which we

an X, and §§ 203.55, 203.76, and 203.77 de- end or reduce royalty relief.
Deep water
End-of-life
Relief withdrawn or reduced lease Expansion Pre-act Development
(1) If recipient requests ......................................................................... X X X X

(2) Lease royalty rate is at the effective rate for 12 consecutive
months ............................................................................................... X .................. ..................
(3) Conditions occur that we specified in the approval letter in indi-
vidual cases ....................................................................................... X .................. ..................
(4) Recipient does not submit post-production report that compares
expected to actual costs .................................................................... ...................... X X X
(5) Recipient changes development system ......................................... ...................... X X X
(6) Recipient excessively delays starting fabrication ............................ ...................... X X X
(7) Recipient spends less than 80 percent of proposed pre-produc-
tion costs prior to start of production ................................................ ...................... X X X
(8) Amount of relief volume is produced .............................................. ...................... X X X
§ 203.5 What is BSEE’s authority to col- The title of this information collection
lect information? is ‘‘30 CFR part 203, Relief or Reduction
in Royalty Rates.’’
(a) The Office of Management and
Budget (OMB) has approved the infor- (b) BSEE collects this information to
make decisions on the economic viabil-
mation collection requirements in this

ity of leases requesting a suspension or
part under 44 U.S.C. 3501 et seq., and as-
elimination of royalty or net profit
signed OMB Control Number 1014–0005.
share. Responses are required to obtain
13
§ 203.30 30 CFR Ch. II (7–1–18 Edition)
a benefit or are mandatory according through 203.36 if the lease meets all the
to 43 U.S.C. 1331 et seq. BSEE will pro- requirements of this section.
tect information considered propri- (a) The lease is located in the GOM
etary under applicable law and under wholly west of 87 degrees, 30 minutes
regulations at § 203.61, ‘‘How do I assess West longitude in water depths en-
my chances for getting relief?’’ and 30 tirely less than 400 meters deep.
CFR 250.197, ‘‘Data and information to (b) The lease has not produced gas or
be made available to the public or for
oil from a deep well or an ultra-deep
limited inspection.’’
well, except as provided in § 203.31(b).
(c) An agency may not conduct or
sponsor, and a person is not required to (c) If the lease is located entirely in
respond to a collection of information more than 200 meters and entirely less
unless it displays a currently valid than 400 meters of water, it must ei-
OMB control number. ther:
(d) Send comments regarding any as- (1) Have been issued before November
pect of the collection of information 28, 1995, and not been granted deep
under this part, including suggestions water royalty relief under 43 U.S.C.
for reducing the burden, to the Infor- 1337(a)(3)(C), added by section 302 of the
mation Collection Clearance Officer, Deep Water Royalty Relief Act; or
Bureau of Safety and Environmental (2) Have been issued after November
Enforcement, 45600 Woodland Road, 28, 2000, and not been granted deep
Sterling, VA 20166. water royalty relief under §§ 203.60
[76 FR 64462, Oct. 18, 2011, as amended at 81 through 203.79.
FR 36148, June 6, 2016]
§ 203.31 If I have a qualified phase 2 or
Subpart B—OCS Oil, Gas, and qualified phase 3 ultra-deep well,
what royalty relief would that well
Sulfur General earn for my lease?
ROYALTY RELIEF FOR DRILLING ULTRA- (a) Subject to the administrative re-
DEEP WELLS ON LEASES NOT SUBJECT quirements of § 203.35 and the price con-
TO DEEP WATER ROYALTY RELIEF ditions in § 203.36, your qualified well
earns your lease an RSV shown in the
§ 203.30 Which leases are eligible for
royalty relief as a result of drilling following table in billions of cubic feet
a phase 2 or phase 3 ultra-deep (BCF) or in thousands of cubic feet
well? (MCF) as prescribed in § 203.33:
Your lease may receive a royalty sus-
pension volume (RSV) under §§ 203.31
If you have a qualified phase 2 or qualified phase 3 ultra-deep Then your lease earns an RSV on this volume of gas produc-
well tion:
that is:
(1) An original well, 35 BCF.

(2) A sidetrack with a sidetrack measured depth of at least 35 BCF.
20,000 feet,
(3) An ultra-deep short sidetrack that is a phase 2 ultra-deep 4 BCF plus 600 MCF times
well, sidetrack measured depth (rounded to the nearest 100 feet)
but no more than 25 BCF.
(4) An ultra-deep short sidetrack that is a phase 3 ultra-deep 0 BCF.
well,
(b)(1) This paragraph applies if your (iii) The terms of your lease ex-
lease: pressly incorporate the provisions of
(i) Has produced gas or oil from a §§ 203.41 through 203.47 as they existed
deep well with a perforated interval the at the time the lease was issued.
top of which is less than 18,000 feet (2) Subject to the administrative re-
TVD SS;
quirements of § 203.35 and the price con-

(ii) Was issued in a lease sale held be- ditions in § 203.36, your qualified well
tween January 1, 2004, and December earns your lease an RSV shown in the
31, 2005; and
14
following table in BCF or MCF as pre-

scribed in § 203.33:
Then your lease earns an RSV on this volume of gas produc-
If you have a qualified phase 2 ultra-deep well that is . . . tion:
(i) An original well or a sidetrack with a sidetrack measured 10 BCF.

depth of at least 20,000 feet TVD SS,
(ii) An ultra-deep short sidetrack, 4 BCF plus 600 MCF times sidetrack measured depth (round-
ed to the nearest 100 feet) but no more than 10 BCF.
(c) Lessees may request a refund of or Example 2: In 2005, you spudded and began
recoup royalties paid on production producing from an ultra-deep well with a
from qualified phase 2 or phase 3 ultra- perforated interval the top of which is 23,000
feet TVD SS. Your lease earns no RSV under
deep wells that: this section from this phase 1 ultra-deep well
(1) Occurs before December 18, 2008, (as defined in § 203.0) because you spudded the
and well before the publication date (May 18,
(2) Is subject to application of an 2007) of the proposed rule when royalty relief
RSV under either § 203.31 or § 203.41. under § 203.31(a) became effective. However,
this ultra-deep well may earn an RSV of 25
(d) The following examples illustrate BCF for your lease under § 203.41 (that be-
how this section applies. These exam- came effective May 3, 2004), if the lease is lo-
ples assume that your lease is located cated in water depths partly or entirely less
in the GOM west of 87 degrees, 30 min- than 200 meters and has not previously pro-
utes West longitude and in water less duced from a deep well (§ 203.30(b)).
than 400 meters deep (see § 203.30(a)), Example 3: In 2000, you began producing
from a deep well with a perforated interval
has no existing deep or ultra-deep wells the top of which is 16,000 feet TVD SS and
and that the price thresholds pre- your lease is located in water 100 meters
scribed in § 203.36 have not been exceed- deep. Then in 2008, you drill and produce
ed. from a new ultra-deep well with a perforated
interval the top of which is 24,000 feet TVD
Example 1: In 2008, you drill and begin pro- SS. Your lease earns no RSV under either
ducing from an ultra-deep well with a per- this section or § 203.41 because the 16,000-foot
forated interval the top of which is 25,000 well was drilled before we offered any way to
feet TVD SS, and your lease has had no prior earn an RSV for producing from a deep well
production from a deep or ultra-deep well. (see dates in the definition of qualified well
Assuming your lease has no deepwater roy- in § 203.0) and because the existence of the
alty relief (see § 203.30(c)), your lease is eligi- 16,000-foot well means the lease is not eligi-
ble (according to § 203.30(b)) to earn an RSV ble (see § 203.30(b)) to earn an RSV for the
under § 203.31 because it has not yet produced 24,000-foot well. Because the lease existed in
from a deep well. Your lease earns an RSV of the year 2000, it cannot be eligible for the ex-
35 BCF under this section when this well be- ception to this eligibility condition provided
gins producing. According to § 203.31(a), your in § 203.31(b).
25,000 foot well qualifies your lease for this Example 4: In 2008, you spud and produce
RSV because the well was drilled after the from an ultra-deep well with a perforated in-
relief authorized here became effective (when terval the top of which is 22,000 feet TVD SS,
the proposed version of this rule was pub- your lease is located in water 300 meters
lished on May 18, 2007) and produced from an deep, and your lease has had no previous pro-
interval that meets the criteria for an ultra- duction from a deep or ultra-deep well. Your
deep well (i.e., is a phase 2 ultra-deep well as lease earns an RSV of 35 BCF under this sec-
defined in § 203.0). Then in 2014, you drill and tion when this well begins producing because
produce from another ultra-deep well with a your lease meets the conditions in § 203.30
perforated interval the top of which is 29,000 and the well fits the definition of a phase 2
feet TVD SS. Your lease earns no additional ultra-deep well (in § 203.0). Then in 2010, you
RSV under this section when this second spud and produce from a deep well with a
ultra-deep well produces, because your lease perforated interval the top of which is 16,000
no longer meets the condition in (§ 203.30(b)) feet TVD SS. Your 16,000-foot well earns no
of no production from a deep well. However, RSV because it is on a lease that already has
any remaining RSV earned by the first ultra- a producing well at least 18,000 feet subsea
deep well on your lease would be applied to (see § 203.42(a)), but any remaining RSV
production from both the first and the sec- earned by the ultra-deep well would also be
ond ultra-deep wells as prescribed in applied to production from the deep well as
§ 203.33(a)(2), or § 203.33(b)(2) if your lease is prescribed in § 203.33(a)(2), or § 203.33(b)(2) if
part of a unit. your lease is part of a unit and § 203.43(a)(2),
15
§ 203.32 30 CFR Ch. II (7–1–18 Edition)
or § 203.43(b)(2) if your lease is part of a unit. that becomes a qualified well and earns an
However, if the 16,000-foot deep well does not RSV of 15 BCF under § 203.41 when it begins
begin production until 2016 (or if your lease producing. Then in February 2008, you spud
were located in water less than 200 meters an ultra-deep well (well no. 2) with a per-
deep), then the 16,000-foot well would not be forated interval the top of which is 22,300
a qualified deep well because this well does feet that begins producing in November 2008,
not begin production within the interval after well no. 1 has started production. Well
specified in the definition of a qualified well
no. 2 earns your lease an additional RSV of
in § 203.0, and the RSV earned by the ultra-
10 BCF under paragraph (b) of this section
deep well would not be applied to production
from this (unqualified) deep well. because it begins production in time to be
Example 5: In 2008, you spud a deep well classified as a phase 2 ultra-deep well. If, on
with a perforated interval the top of which is the other hand, well no. 2 had begun pro-
17,000 feet TVD SS that becomes a qualified ducing in June 2009, it would earn no addi-
well and earns an RSV of 15 BCF under tional RSV for the lease because it would be
§ 203.41 when it begins producing. Then in classified as a phase 3 ultra-deep well and
2011, you spud an ultra-deep well with a per- thus is not entitled to the exception under
forated interval the top of which is 26,000 paragraph (b) of this section.
feet TVD SS. Your 26,000-foot well becomes a
qualified ultra-deep well because it meets § 203.32 What other requirements or
the date and depth conditions in this defini- restrictions apply to royalty relief
tion under § 203.0 when it begins producing, for a qualified phase 2 or phase 3
but your lease earns no additional RSV ultra-deep well?
under this section or § 203.41 because it is on
a lease that already has production from a (a) If a qualified ultra-deep well on
deep well (see § 203.30(b)). Both the qualified your lease is within a unitized portion
deep well and the qualified ultra-deep well of your lease, the RSV earned by that
would share your lease’s total RSV of 15 BCF
in the manner prescribed in §§ 203.33 and
well under this section applies only to
203.43. your lease and not to other leases with-
Example 6: In 2008, you spud a qualified in the unit or to the unit as a whole.
ultra-deep well that is a sidetrack with a (b) If your qualified ultra-deep well is
sidetrack measured depth of 21,000 feet and a a directional well (either an original
perforated interval the top of which is 25,000
feet TVD SS. This well meets the definition
well or a sidetrack) drilled across a
of an ultra-deep well but is too long to be lease line, then either:
classified an ultra-deep short sidetrack in (1) The lease with the perforated in-
§ 203.0. If your lease is located in 150 meters terval that initially produces earns the
of water and has not previously produced RSV or
from a deep well, your lease earns an RSV of
35 BCF because it was drilled after the effec- (2) If the perforated interval crosses a
tive date for earning this RSV. Further, this lease line, the lease where the surface
RSV applies to gas production from this and of the well is located earns the RSV.
any future qualified deep and qualified ultra- (c) Any RSV earned under § 203.31 is
deep wells on your lease, as prescribed in in addition to any royalty suspension
§ 203.33. The absence of an expiration date for
earning an RSV on an ultra-deep well means supplement (RSS) for your lease under
this long sidetrack well becomes a qualified § 203.45 that results from a different
well whenever it starts production. If your wellbore.
sidetrack has a sidetrack measured depth of (d) If your lease earns an RSV under
14,000 feet and begins production in March § 203.31 and later produces from a deep
2009, it earns an RSV of 12.4 BCF under this
section because it meets the definitions of a
well that is not a qualified well, the
phase 2 ultra-deep well (production begins RSV is not forfeited or terminated, but
before the expiration date for the pre-exist- you may not apply the RSV earned
ing relief in its water depth category) and an under § 203.31 to production from the
ultra-deep short sidetrack in § 203.0. How- non-qualified well.
ever, if it does not begin production until
(e) You owe minimum royalties or
2010, it earns no RSV because it is too short
as a phase 3 ultra-deep well to be a qualified rentals in accordance with your lease
ultra-deep well. terms notwithstanding any RSVs al-
Example 7: Your lease was issued in June lowed under paragraphs (a) and (b) of
2004 and expressly incorporates the provi- § 203.31.
sions of §§ 203.41 through 203.47 as they ex- (f) Unused RSVs transfer to a suc-
isted at that time. In January 2005, you spud
a deep well (well no. 1) with a perforated in- cessor lessee and expire with the lease.
terval the top of which is 16,800 feet TVD SS
16
§ 203.33 To which production do I (i) From qualified wells on the non-

apply the RSV earned by qualified unitized area of your lease, regardless
phase 2 and phase 3 ultra-deep of their depth, for which you have met
wells on my lease or in my unit? the requirements in § 203.35 or § 203.44;
(a) You must apply the RSV allowed and
in § 203.31(a) and (b) to gas volumes pro- (ii) Allocated to your lease under a
duced from qualified wells on or after BSEE-approved unit agreement from
May 18, 2007, reported on the Oil and qualified wells on unitized areas of
Gas Operations Report, Part A (OGOR– your lease and on other leases in par-
A) for your lease under 30 CFR 1210.102. ticipating areas of the unit, regardless
All gas production from qualified wells of their depth, for which the require-
reported on the OGOR–A, including ments in § 203.35 or § 203.44 have been
production not subject to royalty, met. The allocated share under para-
counts toward the total lease RSV graph (a)(2)(ii) of this section does not
earned by both deep or ultra-deep wells increase the RSV for your lease.
on the lease.
Example: The east half of your lease A is
(b) This paragraph applies to any unitized with all of lease B. There is one
lease with a qualified phase 2 or phase qualified phase 2 ultra-deep well on the non-
3 ultra-deep well that is not within a unitized portion of lease A that earns lease A
BSEE-approved unit. Subject to the an RSV of 35 BCF under § 203.31, one qualified
price conditions of § 203.36, you must deep well on the unitized portion of lease A
apply the RSV prescribed in § 203.31 as (drilled after the ultra-deep well on the non-
required under the following para- unitized portion of that lease) and a qualified
phase 2 ultra-deep well on lease B that earns
graphs (b)(1) and (b)(2) of this section. lease B a 35 BCF RSV under § 203.31. The par-
(1) You must apply the RSV to the ticipating area percentages allocate 40 per-
earliest gas production occurring on cent of production from both of the unit
and after the later of May 18, 2007, or qualified wells to lease A and 60 percent to
the date the first qualified phase 2 or lease B. If the non-unitized qualified phase 2
phase 3 ultra-deep well that earns your ultra-deep well on lease A produces 12 BCF,
lease the RSV begins production (other and the unitized qualified well on lease A
produces 18 BCF, and the qualified well on
than test production).
lease B produces 37 BCF, then the production
(2) You must apply the RSV to only volume from and allocated to lease A to
gas production from qualified wells on which the lease A RSV applies is 34 BCF [12
your lease, regardless of their depth, + (18 + 37)(0.40)]. The production volume allo-
for which you have met the require- cated to lease B to which the lease B RSV
ments in § 203.35 or § 203.44. applies is 33 BCF [(18 + 37)(0.60)]. None of the
(c) This paragraph applies to any volumes produced from a well that is not
lease with a qualified phase 2 or phase within a unit participating area may be allo-
cated to other leases in the unit.
3 ultra-deep well where all or part of
the lease is within a BSEE-approved (d) You must begin paying royalties
unit. Under the unit agreement, a when the cumulative production of gas
share of the production from all the from all qualified wells on your lease,
qualified wells in the unit partici- or allocated to your lease under para-
pating area would be allocated to your graph (b) of this section, reaches the
lease each month according to the par- applicable RSV allowed under § 203.31
ticipating area percentages. Subject to or § 203.41. For the month in which cu-
the price conditions of § 203.36, you mulative production reaches this RSV,
must apply the RSV prescribed in you owe royalties on the portion of gas
§ 203.31 as follows: production from or allocated to your
(1) You must apply the RSV to the lease that exceeds the RSV remaining
earliest gas production occurring on at the beginning of that month.
and after the later of May 18, 2007, or
the date that the first qualified phase 2 § 203.34 To which production may an
or phase 3 ultra-deep well that earns RSV earned by qualified phase 2
your lease the RSV begins production and phase 3 ultra-deep wells on my
(other than test production). lease not be applied?

(2) You must apply the RSV to only You may not apply an RSV earned
gas production: under § 203.31:
17
§ 203.35 30 CFR Ch. II (7–1–18 Edition)
(a) To production from completions (2) If you produced from a qualified

less than 15,000 feet TVD SS, except in phase 2 or phase 3 ultra-deep well be-
cases where the qualified well is re-per- fore December 18, 2008, you must pro-
forated in the same reservoir pre- vide the information in paragraph
viously perforated deeper than 15,000 (c)(1) of this section no later than Jan-
feet TVD SS; uary 20, 2009.
(b) To production from a deep well or (d) If you cannot produce from a well
ultra-deep well on any other lease, ex- that otherwise meets the criteria for a
cept as provided in paragraph (c) of qualified phase 2 ultra-deep well that is
§ 203.33; an ultra-deep short sidetrack before
(c) To any liquid hydrocarbon (oil May 3, 2009, on a lease that is located
and condensate) volumes; or entirely or partly in water less than 200
(d) To production from a deep well or meters deep, or before May 3, 2013, on a
ultra-deep well that commenced drill- lease that is located entirely in water
ing before: more than 200 meters but less than 400
meters deep, the BSEE Regional Super-
(1) March 26, 2003, on a lease that is
visor for Production and Development
located entirely or partly in water less
may extend the deadline for beginning
than 200 meters deep; or
production for up to 1 year, based on
(2) May 18, 2007, on a lease that is lo- the circumstances of the particular
cated entirely in water more than 200 well involved, if it meets all the fol-
meters deep. lowing criteria.
(1) The delay occurred after drilling
§ 203.35 What administrative steps
must I take to use the RSV earned reached the total depth in your well.
by a qualified phase 2 or phase 3 (2) Production (other than test pro-
ultra-deep well? duction) was expected to begin from
the well before May 3, 2009, on a lease
To use an RSV earned under § 203.31:
that is located entirely or partly in
(a) You must notify the BSEE Re- water less than 200 meters deep or be-
gional Supervisor for Production and fore May 3, 2013, on a lease that is lo-
Development in writing of your intent cated entirely in water more than 200
to begin drilling operations on all your meters but less than 400 meters deep.
ultra-deep wells. You must provide a credible activity
(b) Before beginning production, you schedule with supporting documenta-
must meet any production measure- tion.
ment requirements that the BSEE Re- (3) The delay in beginning production
gional Supervisor for Production and is for reasons beyond your control,
Development has determined are nec- such as adverse weather and accidents
essary under 30 CFR part 250, subpart which BSEE deems were unavoidable.
L.
(c)(1) Within 30 days of the beginning § 203.36 Do I keep royalty relief if
of production from any wells that prices rise significantly?
would become qualified phase 2 or (a) You must pay the Office of Nat-
phase 3 ultra-deep wells by satisfying ural Resources Revenue royalties on
the requirements of this section: all gas production to which an RSV
(i) Provide written notification to otherwise would be applied under
the BSEE Regional Supervisor for Pro- § 203.33 for any calendar year in which
duction and Development that produc- the average daily closing New York
tion has begun; and Mercantile Exchange (NYMEX) natural
(ii) Request confirmation of the size gas price exceeds the applicable thresh-
of the RSV earned by your lease. old price shown in the following table.
A price threshold in year 2007 dollars of . . . Applies to . . .
(1) $10.15 per MMBtu, (i) The first 25 BCF of RSV earned under § 203.31(a) by a
phase 2 ultra-deep well on a lease that is located in water
partly or entirely less than 200 meters deep issued before
December 18, 2008; and

(ii) Any RSV earned under § 203.31(b) by a phase 2 ultra-deep
well.
18
A price threshold in year 2007 dollars of . . . Applies to . . .
(2) $4.55 per MMBtu, (i) Any RSV earned under § 203.31(a) by a phase 3 ultra-deep
well unless the lease terms prescribe a different price
threshold;
(ii) The last 10 BCF of the 35 BCF of RSV earned under
§ 203.31(a) by a phase 2 ultra-deep well on a lease that is
located in water partly or entirely less than 200 meters deep
issued before December 18, 2008, and that is not a non-
converted lease;
(iii) The last 15 BCF of the 35 BCF of RSV earned under
§ 203.31(a) by a phase 2 ultra-deep well on a non-converted
lease;
(iv) Any RSV earned under § 203.31(a) by a phase 2 ultra-
deep well on a lease in water partly or entirely less than 200
meters deep issued on or after December 18, 2008, unless
the lease terms prescribe a different price threshold; and
(v) Any RSV earned under § 203.31(a) by a phase 2 ultra-deep
well on a lease in water entirely more than 200 meters deep
and entirely less than 400 meters deep.
(3) $4.08 per MMBtu, (i) The first 20 BCF of RSV earned by a well that is located on
a non-converted lease issued in OCS Lease Sale 178.
(4) $5.83 per MMBtu, (i) The first 20 BCF of RSV earned by a well that is located on
a non-converted lease issued in OCS Lease Sales 180, 182,
184, 185, or 187.
(b) For purposes of paragraph (a) of $4.55 per MMBtu threshold under paragraph
this section, determine the threshold (a)(2)(ii) of this section which was exceeded.
Example 2: Assume that a lessee:
price for any calendar year after 2007 (1) Drills and produces from well no.1, a
by: qualified deep well in 2008 to a depth of 15,500
(1) Determining the percentage of feet TVD SS that earns a 15 BCF RSV for the
change during the year in the Depart- lease under § 203.41, which would be subject
ment of Commerce’s implicit price to a price threshold of $10.15 per MMBtu (ad-
justed for inflation after 2007), meaning the
deflator for the gross domestic product;
lease is partly or entirely in less than 200
and meters of water;
(2) Adjusting the threshold price for (2) Later in 2008, drills and produces from
the previous year by that percentage. well no. 2, a second qualified deep well to a
(c) The following examples illustrate depth of 17,000 feet TVD SS that earns no ad-
ditional RSV (see § 203.41(c)(1)); and
how this section applies. (3) In 2015, drills and produces from well
Example 1: Assume that a lessee drills and no. 3, a qualified phase 3 ultra-deep well that
begins producing from a qualified phase 2 earns no additional RSV since the lease al-
ultra-deep well in 2008 on a lease issued in ready has an RSV established by prior deep
2004 in less than 200 meters of water that well production. Further assume that in 2015,
earns the lease an RSV of 35 BCF. Further, the average daily closing NYMEX natural
gas price exceeds $4.55 per MMBtu (adjusted
assume the well produces a total of 18 BCF
for inflation after 2007) but does not exceed
by the end of 2009 and in both of those years,
$10.15 per MMBtu (adjusted for inflation
the average daily NYMEX closing natural
after 2007). In 2015, any remaining RSV
gas price is less than $10.15 (adjusted for in- earned by well no. 1 (which would have been
flation after 2007). The lessee does not pay applied to production from well nos. 1 and 2
royalty on the 18 BCF because the gas price in the intervening years), would be applied
threshold under paragraph (a)(1) of this sec- to production from all three qualified wells.
tion applies to the first 25 BCF of this RSV Because the price threshold applicable to
earned by this phase 2 ultra-deep well. In that RSV was not exceeded, the production
2010, the well produces another 13 BCF. In from all three qualified wells would be roy-
that year, the average daily closing NYMEX alty-free until the 15 BCF RSV earned by
natural gas price is greater than $4.55 per well no. 1 is exhausted.
MMBtu (adjusted for inflation after 2007), Example 3: Assume the same initial facts
but less than $10.15 per MMBtu (adjusted for regarding the three wells as in Example 2.
inflation after 2007). The first 7 BCF pro- Further assume that well no. 1 stopped pro-
duced in 2010 will exhaust the first 25 BCF ducing in 2011 after it had produced 8 BCF,
(that is subject to the $10.15 threshold) of the and that well no. 2 stopped producing in 2012
35 BCF RSV that the well earned. The lessee after it had produced 5 BCF. Two BCF of the
must pay royalty on the remaining 6 BCF RSV earned by well no. 1 remain. That RSV
produced in 2010, because it is subject to the would be applied to production from well no.
19
§ 203.40 30 CFR Ch. II (7–1–18 Edition)
3 until it is exhausted, and the lessee there- (b) The lease has not produced gas or
fore would not pay royalty on those 2 BCF oil from a well with a perforated inter-
produced in 2015, because the $10.15 per val the top of which is 18,000 feet TVD
MMBtu (adjusted for inflation after 2007)
SS or deeper that commenced drilling
price threshold is not exceeded. The deter-
mination of which price threshold applies to either:
deep gas production depends on when the (1) Before March 26, 2003, on a lease
first qualified well earned the RSV for the that is located partly or entirely in
lease, not on which wells use the RSV. water less than 200 meters deep; or
Example 4: Assume that in February 2010, a (2) Before May 18, 2007, on a lease
lessee completes and begins producing from that is located in water entirely more
an ultra-deep well (at a depth of 21,500 feet than 200 meters and entirely less than
TVD SS) on a lease located in 325 meters of
400 meters deep.
water with no prior production from any
deep well and no deep water royalty relief. (c) In the case of a lease located part-
The ultra-deep well would be a phase 2 ultra- ly or entirely in water less than 200
deep well (see definition in § 203.0), and would meters deep, the lease was issued in a
earn the lease an RSV of 35 BCF under lease sale held either:
§§ 203.30 and 203.31. Further assume that the (1) Before January 1, 2001;
average daily closing NYMEX natural gas (2) On or after January 1, 2001, and
price exceeds $4.55 per MMBtu (adjusted for before January 1, 2004, and, in cases
inflation after 2007) but does not exceed
where the original lease terms provided
$10.15 per MMBtu (adjusted for inflation
after 2007) during 2010. Because the lease is for an RSV for deep gas production, the
located in more than 200 but less than 400 lessee has exercised the option pro-
meters of water, the $4.55 per MMBtu price vided for in § 203.49; or
threshold applies to the whole RSV (see (3) On or after January 1, 2004, and
paragraph (a)(2)(v) of this section), and the the lease terms provide for royalty re-
lessee will owe royalty on all gas produced lief under §§ 203.41 through 203.47. (Note:
from the ultra-deep well in 2010. Because the original § 203.41 has been
(d) You must pay any royalty due divided into new §§ 203.41 and 203.42 and
under this section no later than March subsequent sections have been redesig-
31 of the year following the calendar nated as §§ 203.43 through 203.48, royalty
year for which you owe royalty. If you relief in lease terms for leases issued
do not pay by that date, you must pay on or after January 1, 2004, should be
late payment interest under 30 CFR read as referring to §§ 203.41 through
1218.54 from April 1 until the date of 203.48.)
payment. (d) If the lease is located entirely in
(e) Production volumes on which you more than 200 meters and less than 400
must pay royalty under this section meters of water, it must either:
count as part of your RSV. (1) Have been issued before November
28, 1995, and not been granted deep
ROYALTY RELIEF FOR DRILLING DEEP water royalty relief under 43 U.S.C.
GAS WELLS ON LEASES NOT SUBJECT 1337(a)(3)(C), added by section 302 of the
TO DEEP WATER ROYALTY RELIEF Deep Water Royalty Relief Act; or
(2) Have been issued after November
§ 203.40 Which leases are eligible for 28, 2000, and not been granted deep
royalty relief as a result of drilling water royalty relief under §§ 203.60
a deep well or a phase 1 ultra-deep
well? through 203.79.
Your lease may receive an RSV under § 203.41 If I have a qualified deep well
§§ 203.41 through 203.44, and may receive or a qualified phase 1 ultra-deep
an RSS under §§ 203.45 through 203.47, if well, what royalty relief would my
it meets all the requirements of this lease earn?
section. (a) To qualify for a suspension vol-
(a) The lease is located in the GOM ume under paragraphs (b) or (c) of this
wholly west of 87 degrees, 30 minutes section, your lease must meet the re-
West longitude in water depths en- quirements in § 203.40 and the require-
tirely less than 400 meters deep. ments in the following table.
20
If your lease has not . . . And if it later . . . Then your lease . . .
(1) produced gas or oil from any deep Has a qualified deep well or qualified earns an RSV specified in paragraph (b)
well or ultra-deep well, phase 1 ultra-deep well, of this section.
(2) produced gas or oil from a well with a Has a qualified deep well with a per- earns an RSV specified in paragraph (c)
perforated interval whose top is 18,000 forated interval whose top is 18,000 of this section.
feet TVD SS or deeper, feet TVD SS or deeper or a qualified
phase 1 ultra-deep well,
(b) If your lease meets the require- tion, it earns the RSV prescribed in the
ments in paragraph (a)(1) of this sec- following table:
If you have a qualified deep well or a qualified phase 1 ultra- Then your lease earns an RSV on this volume of gas produc-
deep well that is: tion:
(1) An original well with a perforated interval the top of which is 15 BCF.
from 15,000 to less than 18,000 feet TVD SS,
(2) A sidetrack with a perforated interval the top of which is 4 BCF plus 600 MCF times sidetrack measured depth (round-
from 15,000 to less than 18,000 feet TVD SS, ed to the nearest 100 feet) but no more than 15 BCF.
at least 18,000 feet TVD SS,
(4) A sidetrack with a perforated interval the top of which is at 4 BCF plus 600 MCF times sidetrack measured depth (round-
least 18,000 feet TVD SS, ed to the nearest 100 feet) but no more than 25 BCF.
(c) If your lease meets the require- RSV your lease already may have
ments in paragraph (a)(2) of this sec- earned from a qualified deep well with
tion, it earns the RSV prescribed in the a perforated interval whose top is from
following table. The RSV specified in 15,000 feet to less than 18,000 feet TVD
this paragraph is in addition to any SS.
If you have a qualified deep well or a qualified phase 1 ultra- Then you earn an RSV on this amount of gas production:
deep well that is . . .
(1) An original well or a sidetrack with a perforated interval the 0 BCF.

top of which is from 15,000 to less than 18,000 feet TVD SS,
18,000 feet TVD SS or deeper,
(3) A sidetrack with a perforated interval the top of which is 4 BCF plus 600 MCF times sidetrack measured depth (round-
18,000 feet TVD SS or deeper, ed to the nearest 100 feet) but no more than 10 BCF.
(d) Lessees may request a refund of qualified wells on your lease, as prescribed in
or recoup royalties paid on production §§ 203.43 and 203.48. However, if the top of the
from qualified wells on a lease that is perforated interval is 18,500 feet TVD SS, the
located in water entirely deeper than RSV is 25 BCF according to paragraph (b)(3)
of this section.
200 meters but entirely less than 400
Example 2: If you have a qualified deep well
meters deep that: that is a sidetrack, with a perforated inter-
(1) Occurs before December 18, 2008; val the top of which is 16,000 feet TVD SS
and and a sidetrack measured depth of 6,789 feet,
(2) Is subject to application of an we round the measured depth to 6,800 feet
RSV under either § 203.31 or § 203.41. and your lease earns an RSV of 8.08 BCF
(e) The following examples illustrate under paragraph (b)(2) of this section. This
how this section applies, assuming RSV would be applied to gas production from
your lease meets the location, prior all qualified wells on your lease, as pre-
production, and lease issuance condi- scribed in §§ 203.43 and 203.48.
tions in § 203.40 and paragraph (a) of Example 3: If you have a qualified deep well
this section: that is a sidetrack, with a perforated inter-
val the top of which is 16,000 feet TVD SS
Example 1: If you have a qualified deep well and a sidetrack measured depth of 19,500 feet,
that is an original well with a perforated in- your lease earns an RSV of 15 BCF. This RSV
terval the top of which is 16,000 feet TVD SS, would be applied to gas production from all
your lease earns an RSV of 15 BCF under qualified wells on your lease, as prescribed in
paragraph (b)(1) of this section. This RSV §§ 203.43 and 203.48, even though 4 BCF plus
must be applied to gas production from all 600 MCF per foot of sidetrack measured
21
§ 203.42 30 CFR Ch. II (7–1–18 Edition)
depth equals 15.7 BCF because paragraph would increase to 25 BCF only in 2 situa-
(b)(2) of this section limits the RSV for a tions: (1) If the second well was a phase 1
sidetrack at the amount an original well to ultra-deep well, i.e., if drilling began before
the same depth would earn. May 18, 2007, or (2) the exception in § 203.31(b)
Example 4: If you have drilled and produced applies. In both situations, your lease must
a deep well with a perforated interval the top be partly or entirely in less than 200 meters
of which is 16,000 feet TVD SS before March of water and production must begin on this
26, 2003 (and the well therefore is not a quali- well before May 3, 2009. If drilling of the sec-
fied well and has earned no RSV under this ond well began on or after May 18, 2007, the
section), and later drill: second well would be qualified as a phase 2 or
(i) A deep well with a perforated interval phase 3 ultra-deep well and, unless the excep-
the top of which is 17,000 feet TVD SS, your tion in § 203.31(b) applies, would not earn any
lease earns no RSV (see paragraph (c)(1) of additional RSV (as prescribed in § 203.30), so
this section); the total RSV for your lease would remain at
(ii) A qualified deep well that is an original 15 BCF.
well with a perforated interval the top of
Example 6: If you have a qualified deep well
which is 19,000 feet TVD SS, your lease earns
that is a sidetrack, with a perforated inter-
an RSV of 10 BCF under paragraph (c)(2) of
this section. This RSV would be applied to val the top of which is 16,000 feet TVD SS
gas production from qualified wells on your and a sidetrack measured depth of 4,000 feet,
lease, as prescribed in §§ 203.43 and 203.48; or and later drill a second qualified well that is
(iii) A qualified deep well that is a side- a sidetrack, with a perforated interval the
track with a perforated interval the top of top of which is 19,000 feet TVD SS and a side-
which is 19,000 feet TVD SS, that has a sidetrack measured depth of 8,000 feet, we in-
track measured depth of 7,000 feet, your lease crease the total RSV for your lease from 6.4
earns an RSV of 8.2 BCF under paragraph BCF [4 + (600 * 4,000)/1,000,000] to 15.2 BCF {6.4
(c)(3) of this section. This RSV would be ap- + [4 + (600 * 8,000)/1,000,000)]} under para-
plied to gas production from qualified wells graphs (b)(2) and (c)(3) of this section. We
on your lease, as prescribed in §§ 203.43 and would apply that RSV to gas production
203.48. from all qualified wells on your lease, as pre-
Example 5: If you have a qualified deep well scribed in §§ 203.43 and 203.48. The difference
that is an original well with a perforated in- of 8.8 BCF represents the RSV earned by the
terval the top of which is 16,000 feet TVD SS, second sidetrack that has a perforated inter-
and later drill a second qualified well that is val the top of which is deeper than 18,000 feet
an original well with a perforated interval TVD SS.
the top of which is 19,000 feet TVD SS, we in-
crease the total RSV for your lease from 15 § 203.42 What conditions and limita-
BCF to 25 BCF under paragraph (c)(2) of this tions apply to royalty relief for
section. We will apply that RSV to gas pro- deep wells and phase 1 ultra-deep
duction from all qualified wells on your wells?
lease, as prescribed in §§ 203.43 and 203.48. If
the second well has a perforated interval the The conditions and limitations in the
top of which is 22,000 feet TVD SS (instead of following table apply to royalty relief
19,000 feet), the total RSV for your lease under § 203.41.
If . . . Then . . .
(a) Your lease has produced gas or oil from a well with a per- your lease cannot earn an RSV under § 203.41 as a result of
forated interval the top of which is 18,000 feet TVD SS or drilling any subsequent deep wells or phase 1 ultra-deep
deeper, wells.
(b) You determine RSV under § 203.41 for the first qualified that determination establishes the total RSV available for that
deep well or qualified phase 1 ultra-deep well on your lease drilling depth interval on your lease (i.e., either 15,000–
(whether an original well or a sidetrack) because you drilled 18,000 feet TVD SS, or 18,000 feet TVD SS and deeper),
and produced it within the time intervals set forth in the defi- regardless of the number of subsequent qualified wells you
nitions for qualified wells, drill to that depth interval.
(c) A qualified deep well or qualified phase 1 ultra-deep well on the RSV earned by that well under § 203.41 applies only to
your lease is within a unitized portion of your lease, production from qualified wells on or allocated to your lease
and not to other leases within the unit.
(d) Your qualified deep well or qualified phase 1 ultra-deep well the lease with the perforated interval that initially produces
is a directional well (either an original well or a sidetrack) earns the RSV. However, if the perforated interval crosses a
drilled across a lease line, lease line, the lease where the surface of the well is located
earns the RSV.
(e) You earn an RSV under § 203.41, that RSV is in addition to any RSS for your lease under
§ 203.45 that results from a different wellbore.
(f) Your lease earns an RSV under § 203.41 and later pro- the RSV is not forfeited or terminated, but you may not apply
duces from a well that is not a qualified well, the RSV under § 203.41 to production from the non-qualified
well.
(g) You qualify for an RSV under paragraphs (b) or (c) of you still owe minimum royalties or rentals in accordance with
§ 203.41, your lease terms.
22
If . . . Then . . .
(h) You transfer your lease, unused RSVs transfer to a successor lessee and expire with
the lease.
Example to paragraph (b): If your first quali- gins production (other than test pro-
fied deep well is a sidetrack with a per- duction).
forated interval whose top is 16,000 feet TVD (2) You must apply the RSV to only
SS and earns an RSV of 12.5 BCF, and you
later drill a qualified original deep well to
gas production from qualified wells on
17,000 feet TVD SS, the RSV for your lease your lease, regardless of their depth,
remains at 12.5 BCF and does not increase to for which you have met the require-
15 BCF. However, under paragraph (c) of ments in § 203.35 or § 203.44.
§ 203.41, if you subsequently drill a qualified
deep well to a depth of 18,000 feet or greater Example 1: On a lease in water less than 200
TVD SS, you may earn an additional RSV. meters deep, you began drilling an original
deep well with a perforated interval the top
§ 203.43 To which production do I of which is 18,200 feet TVD SS in September
apply the RSV earned from quali- 2003, that became a qualified deep well in
fied deep wells or qualified phase 1 July 2004, when it began producing and using
ultra-deep wells on my lease? the RSV that it earned. You subsequently
drill another original deep well with a per-
(a) You must apply the RSV pre- forated interval the top of which is 16,600
scribed in § 203.41(b) and (c) to gas vol- feet TVD SS, which becomes a qualified deep
umes produced from qualified wells on well when production begins in August 2008.
or after May 3, 2004, reported on the The first well earned an RSV of 25 BCF (see
OGOR–A for your lease under 30 CFR § 203.41(a)(1) and (b)(3)). You must apply any
remaining RSV each month beginning in Au-
1210.102, as and to the extent prescribed
gust 2008 to production from both wells until
in §§ 203.43 and 203.48. the 25 BCF RSV is fully utilized according to
(1) Except as provided in paragraph paragraph (b)(2) of this section. If the second
(a)(2) of this section, all gas production well had begun production in August 2009, it
from qualified wells reported on the would not be a qualified deep well because it
OGOR–A, including production that is started production after expiration in May
not subject to royalty, counts toward 2009 of the ability to qualify for royalty re-
the lease RSV. lief in this water depth, and could not share
(2) Production to which an RSS ap- any of the remaining RSV (see definition of
a qualified deep well in § 203.0).
plies under §§ 203.45 and 203.46 does not Example 2: On a lease in water between 200
count toward the lease RSV. and 400 meters deep, you begin drilling an
(b) This paragraph applies to any original deep well with a perforated interval
lease with a qualified deep well or the top of which is 17,100 feet TVD SS in No-
qualified phase 1 ultra-deep well when vember 2010 that becomes a qualified deep
no part of the lease is within a BSEE- well in June 2011 when it begins producing
approved unit. Subject to the price and using the RSV. You subsequently drill
conditions in § 203.48, you must apply another original deep well with a perforated
interval the top of which is 15,300 feet TVD
the RSV prescribed in § 203.41 as re-
SS which becomes a qualified deep well by
quired under the following paragraphs beginning production in October 2011 (see
(b)(1) and (b)(2) of this section. definition of a qualified deep well in § 203.0).
(1) You must apply the RSV to the Only the first well earns an RSV equal to 15
earliest gas production occurring on BCF (see § 203.41(a) and (b)). You must apply
and after the later of: any remaining RSV each month beginning in
(i) May 3, 2004, for an RSV earned by October 2011 to production from both quali-
a qualified deep well or qualified phase fied deep wells until the 15 BCF RSV is fully
utilized according to paragraph (b)(2) of this
1 ultra-deep well on a lease that is lo-
section.
cated entirely or partly in water less
than 200 meters deep; (c) This paragraph applies to any
(ii) May 18, 2007, for an RSV earned lease with a qualified deep well or
by a qualified deep well on a lease that qualified phase 1 ultra-deep well when
is located entirely in water more than all or part of the lease is within a
200 meters deep; or BSEE-approved unit. Under the unit

(iii) The date that the first qualified agreement, a share of the production
well that earns your lease the RSV be- from all the qualified wells in the unit
23
§ 203.44 30 CFR Ch. II (7–1–18 Edition)
participating area would be allocated from and allocated to lease A to which the
to your lease each month according to lease an RSV applies is 20 BCF [12 + (15 + 10)
the participating area percentages. * (0.32)]. The production volume allocated to
lease B to which the lease B RSV applies is
Subject to the price conditions in
17 BCF [(15 + 10) * (0.68)].
§ 203.48, you must apply the RSV pre-
scribed under § 203.41 as required under (d) You must begin paying royalties
the following paragraphs (c)(1) through when the cumulative production of gas
(3) of this section. from all qualified wells on your lease,
(1) You must apply the RSV to the or allocated to your lease under para-
earliest gas production occurring on graph (c) of this section, reaches the
and after the later of: applicable RSV allowed under § 203.31
(i) May 3, 2004, for an RSV earned by or § 203.41. For the month in which cu-
a qualified well or qualified phase 1 mulative production reaches this RSV,
ultra-deep well on a lease that is lo- you owe royalties on the portion of gas
cated entirely or partly in water less production that exceeds the RSV re-
than 200 meters deep; maining at the beginning of that
(ii) May 18, 2007, for an RSV earned month.
by a qualified deep well on a lease that (e) You may not apply the RSV al-
is located entirely in water more than lowed under § 203.41 to:
200 meters deep; or (1) Production from completions less
(iii) The date that the first qualified than 15,000 feet TVD SS, except in
well that earns your lease the RSV be- cases where the qualified deep well is
gins production (other than test pro- re-perforated in the same reservoir pre-
duction). viously perforated deeper than 15,000
(2) You must apply the RSV to only feet TVD SS;
gas production: (2) Production from a deep well or
(i) From all qualified wells on the phase 1 ultra-deep well on any other
non-unitized area of your lease, regard- lease, except as provided in paragraph
less of their depth, for which you have (c) of this section;
met the requirements in § 203.35 or (3) Any liquid hydrocarbon (oil and
§ 203.44; and, condensate) volumes; or
(ii) Allocated to your lease under a
(4) Production from a deep well or
BSEE-approved unit agreement from
phase 1 ultra-deep well that com-
qualified wells on unitized areas of
menced drilling before:
your lease and on unitized areas of
other leases in the unit, regardless of (i) March 26, 2003, on a lease that is
their depth, for which the requirements located entirely or partly in water less
in § 203.35 or § 203.44 have been met. than 200 meters deep, or
(3) The allocated share under para- (ii) May 18, 2007, on a lease that is lo-
graph (c)(2)(ii) of this section does not cated entirely in water more than 200
increase the RSV for your lease. None meters deep.
of the volumes produced from a well
§ 203.44 What administrative steps
that is not within a unit participating must I take to use the royalty sus-
area may be allocated to other leases pension volume?
in the unit.
(a) You must notify the BSEE Re-
Example: The east half of your lease A is gional Supervisor for Production and
unitized with all of lease B. There is one Development in writing of your intent
qualified 19,000-foot TVD SS deep well on the
non-unitized portion of lease A, one qualified
to begin drilling operations on all deep
18,500-foot TVD SS deep well on the unitized wells and phase 1 ultra-deep wells; and
portion of lease A, and a qualified 19,400-foot (b) Within 30 days of the beginning of
TVD SS deep well on lease B. The partici- production from all wells that would
pating area percentages allocate 32 percent become qualified wells by satisfying
of production from both of the unit qualified the requirements of this section, you
deep wells to lease A and 68 percent to lease must:
B. If the non-unitized qualified deep well on
(1) Provide written notification to
lease A produces 12 BCF and the unitized

qualified deep well on lease A produces 15 the BSEE Regional Supervisor for Pro-
BCF, and the qualified deep well on lease B duction and Development that produc-
produces 10 BCF, then the production volume tion has begun; and
24
(2) Request confirmation of the size (3) Production (other than test pro-
of the royalty suspension volume duction) was expected to begin from
earned by your lease. the well before the applicable deadline
(c) Before beginning production, you in the definition of a qualified deep
must meet any production measure- well in § 203.0. You must provide a cred-
ment requirements that the BSEE Re- ible activity schedule with supporting
gional Supervisor for Production and documentation.
Development has determined are nec- (4) The delay in beginning production
essary under 30 CFR part 250, subpart is for reasons beyond your control,
L. such as adverse weather and accidents
(d) You must provide the information which BSEE deems were unavoidable.
in paragraph (b) of this section by Jan- § 203.45 If I drill a certified unsuccess-
uary 20, 2009, if you produced before De- ful well, what royalty relief will my
cember 18, 2008, from a qualified deep lease earn?
well or qualified phase 1 ultra-deep Your lease may earn a royalty sus-
well on a lease that is located entirely pension supplement. Subject to para-
in water more than 200 meters and less graph (d) of this section, the royalty
than 400 meters deep. suspension supplement is in addition to
(e) The BSEE Regional Supervisor for any royalty suspension volume your
Production and Development may ex- lease may earn under § 203.41.
tend the deadline for beginning produc- (a) If you drill a certified unsuccess-
tion for up to one year for a well that ful well and you satisfy the administra-
cannot begin production before the ap- tive requirements of § 203.47, subject to
plicable date prescribed in the defini- the price conditions in § 203.48, your
tion of ‘‘qualified deep well’’ in § 203.0 if lease earns an RSS shown in the fol-
it meets all of the following criteria. lowing table. The RSS is shown in bil-
(1) The well otherwise meets the cri- lions of cubic feet of gas equivalent
teria in the definition of a qualified (BCFE) or in thousands of cubic feet of
deep well in § 203.0. gas equivalent (MCFE) and is applica-
(2) The delay in production occurred ble to oil and gas production as pre-
after reaching total depth in the well. scribed in § 203.46.
Then your lease earns an RSS on this volume of oil and gas
If you have a certified unsuccessful well that is:— production as prescribed in this section and § 203.46:—
(1) An original well and your lease has not produced gas or oil 5 BCFE.
from a deep well or an ultra-deep well,
(2) A sidetrack (with a sidetrack measured depth of at least 0.8 BCFE plus 120 MCFE times sidetrack measured depth
10,000 feet) and your lease has not produced gas or oil from (rounded to the nearest 100 feet) but no more than 5 BCFE.
a deep well or an ultra-deep well,
(3) An original well or a sidetrack (with a sidetrack measured 2 BCFE.
depth of at least 10,000 feet) and your lease has produced
gas or oil from a deep well with a perforated interval the top
of which is from 15,000 to less than 18,000 feet TVD SS,
(b) This paragraph applies to oil and (ii) On or after May 3, 2004, if your
gas volumes you report on the OGOR– lease is located in water partly or en-
A for your lease under 30 CFR 1210.102. tirely less than 200 meters deep.
(1) You must apply the RSS pre- (2) Production to which an RSV ap-
scribed in paragraph (a) of this section, plies under §§ 203.31 through 203.33 and
in accordance with the requirements in §§ 203.41 through 203.43 does not count
§ 203.46, to all oil and gas produced from toward the lease RSS. All other pro-
the lease: duction, including production that is
(i) On or after December 18, 2008, if not subject to royalty, counts toward
your lease is located in water more the lease RSS.
than 200 meters but less than 400 me-
Example 1: If you drill a certified unsuc-

ters deep; or cessful well that is an original well to a tar-
get 19,000 feet TVD SS, your lease earns an
RSS of 5 BCFE that would be applied to gas
25
§ 203.46 30 CFR Ch. II (7–1–18 Edition)
and oil production if your lease has not pre- (f) If the same wellbore that earned a
viously produced from a deep well or an royalty suspension supplement later
ultra-deep well, or you earn an RSS of 2 has a sidetrack drilled from that
BCFE of gas and oil production if your lease
has previously produced from a deep well
wellbore, you are not required to sub-
with a perforated interval from 15,000 to less tract any royalty suspension supple-
than 18,000 feet TVD SS, as prescribed in ment earned by that wellbore from the
§ 203.46. royalty suspension volume that may be
Example 2: If you drill a certified unsuc- earned by the sidetrack.
cessful well that is a sidetrack that reaches (g) You owe minimum royalties or
a target 19,000 feet TVD SS, that has a side- rentals in accordance with your lease
track measured depth of 12,545 feet, and your
lease has not produced gas or oil from any
terms notwithstanding any royalty
deep well or ultra-deep well, BSEE rounds suspension supplements under this sec-
the sidetrack measured depth to 12,500 feet tion.
and your lease earns an RSS of 2.3 BCFE of
gas and oil production as prescribed in § 203.46 To which production do I
§ 203.45. apply the royalty suspension sup-
plements from drilling one or two
(c) The conversion from oil to gas for certified unsuccessful wells on my
using the royalty suspension supple- lease?
ment is specified in § 203.73. (a) Subject to the requirements of
(d) Each lease is eligible for up to two §§ 203.40, 203.43, 203.45, 203.47, and 203.48
royalty suspension supplements.
you must apply an RSS in § 203.45 to
Therefore, the total royalty suspension
the earliest oil and gas production:
supplement for a lease cannot exceed 10
(1) Occurring on and after the day
BCFE.
you file the information under
(1) You may not earn more than one
§ 203.47(b),
royalty suspension supplement from a
(2) From, or allocated under a BSEE-
single wellbore.
approved unit agreement to, the lease
(2) If you begin drilling a certified
on which the certified unsuccessful
unsuccessful well on one lease but the
well was drilled, without regard to the
completion target is on a second lease,
drilling depth of the well producing the
the entire royalty suspension supple-
gas or oil.
ment belongs to the second lease. How-
(b) If you have a royalty suspension
ever, if the target straddles a lease
volume for the lease under § 203.41, you
line, the lease where the surface of the
must use the royalty suspension vol-
well is located earns the royalty sus-
umes for gas produced from qualified
pension supplement.
wells on the lease before using royalty
(e) If the same wellbore that earns an
suspension supplements for gas pro-
RSS as a certified unsuccessful well
duced from qualified wells.
later produces from a perforated inter-
val the top of which is 15,000 feet TVD Example to paragraph (b): You have two
or deeper and becomes a qualified well, shallow oil wells on your lease. Then you
it will be subject to the following con- drill a certified unsuccessful well and earn a
ditions: royalty suspension supplement of 5 BCFE.
Thereafter, you begin production from an
(1) Beginning on the date production original well that is a qualified well that
starts, you must stop applying the roy- earns a royalty suspension volume of 15 BCF.
alty suspension supplement earned by You use only 2 BCFE of the royalty suspen-
that wellbore to your lease production. sion supplement before the oil wells deplete.
(2) If the completion of this qualified You must use up the 15 BCF of royalty sus-
well is on your lease or, in the case of pension volume before you use the remaining
a directional well, is on another lease, 3 BCFE of the royalty suspension supple-
then you must subtract from the roy- ment for gas produced from the qualified
well.
alty suspension volume earned by that
qualified well the royalty suspension (c) If you have no current production
supplement amounts earned by that on which to apply the RSS allowed
wellbore that have already been ap- under § 203.45, your RSS applies to the
plied either on your lease or any other earliest subsequent production of gas
lease. The difference represents the and oil from, or allocated under a
royalty suspension volume earned by BSEE-approved unit agreement to,
the qualified well. your lease.
26
(d) Unused royalty suspension supple- for Production and Development with-
ments transfer to a successor lessee in 60 days after reaching the total
and expire with the lease. depth in your well:
(e) You may not apply the RSS al- (1) Information that allows BSEE to
lowed under § 203.45 to production from confirm that you drilled a certified un-
any other lease, except for production successful well as defined under § 203.0,
allocated to your lease from a BSEE- including:
approved unit agreement. If your cer- (i) Well log data, if your original well
tified unsuccessful well is on a lease
or sidetrack does not meet the
subject to a BSEE-approved unit agree-
producibility requirements of 30 CFR
ment, the lessees of other leases in the
part 550, subpart A; or
unit may not apply any portion of the
RSS for your lease to production from (ii) Well log, well test, seismic, and
the other leases in the unit. economic data, if your well does meet
(f) You must begin or resume paying the producibility requirements of 30
royalties when cumulative gas and oil CFR part 550, subpart A; and
production from, or allocated under a (2) Information that allows BSEE to
BSEE-approved unit agreement to, confirm the size of the royalty suspen-
your lease (excluding any gas produced sion supplement for a sidetrack, in-
from qualified wells subject to a roy- cluding sidetrack measured depth and
alty suspension volume allowed under supporting documentation.
§ 203.41) reaches the applicable royalty (c) If you commenced drilling a well
suspension supplement. For the month that otherwise meets the criteria for a
in which the cumulative production certified unsuccessful well on a lease
reaches this royalty suspension supple- located entirely in more than 200 me-
ment, you owe royalties on the portion ters and entirely less than 400 meters
of gas or oil production that exceeds of water on or after May 18, 2007, and
the amount of the royalty suspension finished it before December 18, 2008,
supplement remaining at the beginning you must provide the information in
of that month. paragraph (b) of this section no later
§ 203.47 What administrative steps do I than February 17, 2009.
take to obtain and use the royalty
suspension supplement? § 203.48 Do I keep royalty relief if
prices rise significantly?
(a) Before you start drilling a well on
your lease targeted to a reservoir at (a) You must pay royalties on all gas
least 18,000 feet TVD SS, you must no- and oil production for which an RSV or
tify, in writing, the BSEE Regional Su- an RSS otherwise would be allowed
pervisor for Production and Develop- under §§ 203.40 through 203.47 for any
ment of your intent to begin drilling calendar year when the average daily
operations and the depth of the target. closing NYMEX natural gas price ex-
(b) After drilling the well, you must ceeds the applicable threshold price
provide the BSEE Regional Supervisor shown in the following table.
For a lease located in water . . And issued . . . The applicable threshold price is . . .
.
(1) Partly or entirely less than before December 18, 2008, $10.15 per MMBtu, adjusted annually after calendar year
200 meters deep, 2007 for inflation.
(2) Partly or entirely less than after December 18, 2008, $4.55 per MMBtu, adjusted annually after calendar year 2007
200 meters deep, for inflation unless the lease terms prescribe a different
price threshold.
(3) Entirely more than 200 me- on any date, $4.55 per MMBtu, adjusted annually after calendar year 2007
ters and entirely less than for inflation unless the lease terms prescribe a different
400 meters deep, price threshold.
(b) Determine the threshold price for mestic product, as published by the De-
any calendar year after 2007 by adjust- partment of Commerce, changed during
ing the threshold price in the previous the calendar year.

year by the percentage that the im- (c) You must pay any royalty due
plicit price deflator for the gross do- under this section no later than March
27
§ 203.49 30 CFR Ch. II (7–1–18 Edition)
31 of the year following the calendar most recent of these 12 months are con-
year for which you owe royalty. If you sidered the qualifying months. These 12
do not pay by that date, you must pay months should reflect the basic oper-
late payment interest under 30 CFR ation you intend to use until your re-
1218.54 from April 1 until the date of sources are depleted. If you changed
payment. your operation significantly (e.g.,
(d) Production volumes on which you begin re-injecting rather than recov-
must pay royalty under this section ering gas) during the qualifying
count as part of your RSV and RSS. months, or if you do so while we are
processing your application, we may
§ 203.49 May I substitute the deep gas defer action on your application until
drilling provisions in this part for
the deep gas royalty relief provided you revise it to show the new cir-
in my lease terms? cumstances.
(b) Your end-of-life lease is other
(a) You may exercise an option to re-
than an oil and gas lease (e.g., sulphur)
place the applicable lease terms for
and has production in at least 12 of the
royalty relief related to deep-well drill-
past 15 months. The most recent of
ing with those in § 203.0 and §§ 203.40
these 12 months are considered the
through 203.48 if you have a lease
qualifying months.
issued with royalty relief provisions for
deep-well drilling. Such leases: § 203.51 How do I apply for end-of-life
(1) Must be issued as part of an OCS royalty relief?
lease sale held after January 1, 2001,
and before April 1, 2004; and You must submit a complete applica-
(2) Must be located wholly west of 87 tion and the required fee to the appro-
degrees, 30 minutes West longitude in priate BSEE Regional Director. Your
the GOM entirely or partly in water BSEE regional office will provide spe-
less than 200 meters deep. cific guidance on the report formats. A
(b) To exercise the option under para- complete application for relief in-
graph (a) of this section, you must no- cludes:
tify, in writing, the BSEE Regional Su- (a) An administrative information re-
pervisor for Production and Develop- port (specified in § 203.83) and
ment of your decision before Sep- (b) A net revenue and relief justifica-
tember 1, 2004, or 180 days after your tion report (specified in § 203.84).
lease is issued, whichever is later, and
specify the lease and block number. § 203.52 What criteria must I meet to
(c) Once you exercise the option get relief?
under paragraph (a) of this section, you (a) To qualify for relief, you must
are subject to all the activity, timing, demonstrate that the sum of royalty
and administrative requirements per- payments over the 12 qualifying
taining to deep gas royalty relief as months exceeds 75 percent of the sum
specified in §§ 203.40 through 203.48. of net revenues (before-royalty reve-
(d) Exercising the option under para- nues minus allowable costs, as defined
graph (a) of this section is irrevocable. in § 203.84).
If you do not exercise this option, then (b) To re-qualify for relief, e.g., ei-
the terms of your lease apply. ther applying for additional relief on
top of relief already granted, or apply-
ROYALTY RELIEF FOR END-OF-LIFE
ing for relief sometime after your ear-
LEASES
lier agreement terminated, you must
§ 203.50 Who may apply for end-of-life demonstrate that:
royalty relief? (1) You have met the criterion listed
You may apply for royalty relief in in paragraph (a) of this section, and
two situations. (2) The 12 required qualifying months
(a) Your end-of-life lease (as defined of operation have occurred under the
in § 203.2) is an oil and gas lease and has current royalty arrangement.
average daily production of at least 100
barrels of oil equivalent (BOE) per § 203.53 What relief will BSEE grant?
month (as calculated in § 203.73) in at (a) If we approve your application
least 12 of the past 15 months. The and you meet certain conditions, we
28
will reduce the pre-application effec- renouncement of the relief arrange-

tive royalty rate by one-half on pro- ment.
duction up to the relief volume (b) If you pay the effective lease rate
amount. If you produce more than the for 12 consecutive months, we will ter-
relief volume amount: minate your relief. The lease rate will
(1) We will impose a royalty rate return to the effective rate in the first
equal to 1.5 times the effective royalty full month following this termination.
rate on your additional production up (c) We may stipulate in the letter of
to twice the relief volume amount; and approval for individual cases certain
(2) We will impose a royalty rate events that would cause us to termi-
equal to the effective rate on all pro- nate relief because they are incon-
duction greater than twice the relief sistent with an end-of-life situation.
volume amount.
(b) Regardless of the level of produc- § 203.56 Does relief transfer when a
tion or prices (see § 203.54), royalty pay- lease is assigned?
ments due under end-of-life relief will Yes. Royalty relief is based on the
not exceed the royalty obligations that lease circumstances, not ownership. It
would have been due at the effective transfers upon lease assignment.
royalty rate.
(1) The effective royalty rate is the ROYALTY RELIEF FOR PRE-ACT DEEP
average lease rate paid on production WATER LEASES AND FOR DEVELOP-
during the 12 qualifying months. MENT AND EXPANSION PROJECTS
(2) The relief volume amount is the
average monthly BOE production for § 203.60 Who may apply for royalty re-
lief on a case-by-case basis in deep
the 12 qualifying months. water in the Gulf of Mexico or off-
shore of Alaska?
§ 203.54 How does my relief arrange-
ment for an oil and gas lease oper- You may apply for royalty relief
ate if prices rise sharply? under §§ 203.61(b) and 203.62 for an indi-
In those months when your current vidual lease, unit or project if you:
reference price rises by at least 25 per- (a) Hold a pre-Act lease (as defined in
cent above your base reference price, § 203.0) that we have assigned to an au-
you must pay the effective royalty rate thorized field (as defined in § 203.0);
on all monthly production. (b) Propose an expansion project (as
(a) Your current reference price is a defined in § 203.0); or
weighted average of daily closing (c) Propose a development project (as
prices on the NYMEX for light sweet defined in § 203.0).
crude oil and natural gas over the most
§ 203.61 How do I assess my chances
recent full 12 calendar months; for getting relief?
(b) Your base reference price is a
weighted average of daily closing You may ask for a nonbinding assess-
prices on the NYMEX for light sweet ment (a formal opinion on whether a
crude oil and natural gas during the field would qualify for royalty relief)
qualifying months; and before turning in your first complete
(c) Your weighting factors are the application on an authorized field. This
proportions of your total production field must have a qualifying well under
volume (in BOE) provided by oil and 30 CFR part 550, subpart A, or be on a
gas during the qualifying months. lease that has allocated production
under an approved unit agreement.
§ 203.55 Under what conditions can my (a) To request a nonbinding assess-
end-of-life royalty relief arrangement, you must:
ment for an oil and gas lease be (1) Submit a draft application in the
ended? format and detail specified in guidance
(a) If you have an end-of-life royalty from the BSEE regional office for the
relief arrangement, you may renounce GOM;
it at any time. The lease rate will re- (2) Propose to drill at least one more
turn to the effective rate during the appraisal well if you get a favorable as-
qualifying period in the first full sessment; and
month following our receipt of your (3) Pay a fee under § 203.3.
29
§ 203.62 30 CFR Ch. II (7–1–18 Edition)
(b) You must wait at least 90 days dates of all leases in each designated
after receiving our assessment to apply field.
for relief under § 203.62. (2) To avoid sharing proprietary data
(c) This assessment is not binding be- with other lessees on the field, you
cause a complete application may con- may submit your proprietary G&G re-
tain more accurate information that port separately from the rest of your
does not support our original assess- application. Your application is not
ment. It will help you decide whether complete until we receive all the re-
your proposed inputs for evaluating quired information for each lease on
economic viability and your supporting the field. We will not disclose propri-
data and assumptions are adequate. etary data when explaining our as-
sumptions and reasons for our deter-
§ 203.62 How do I apply for relief? minations under § 203.67.
(a) You must send a complete appli- (3) We will not require a joint appli-
cation and the required fee to the cation if you show good cause and hon-
BSEE Regional Director for your re- est effort to get all lessees in the field
gion. to participate. If you must exclude a
(b) Your application for royalty relief lease from your application because its
offshore Alaska or in deep water in the lessee will not participate, that lease is
GOM must include an original and two ineligible for the royalty relief for the
copies (one set of digital information) designated field.
of: (b) If your application seeks only re-
(1) Administrative information relief for a development project or an ex-
port; pansion project, your application does
not have to include all leases in the
(2) Economic viability and relief jus-
field.
tification report;
(3) G&G report; § 203.64 How many applications may I
(4) Engineering report; file on a field or a development
(5) Production report; and project?
(6) Cost report. You may file one complete applica-
(c) Section 203.82 explains why we are tion for royalty relief during the life of
authorized to require these reports. the field or for a development project
(d) Sections 203.81, 203.83, and 203.85 or an expansion project designed to
through 203.89 describe what these re- produce a reservoir or set of reservoirs.
ports must include. The BSEE regional However, you may send another appli-
office for your region will guide you on cation if:
the format for the required reports, (a) You are eligible to apply for a re-
and we encourage you to contact this determination under § 203.74;
office before preparing your applica- (b) You apply for royalty relief for an
tion for this guidance. expansion project;
(c) You withdraw the application be-
§ 203.63 Does my application have to fore we make a determination; or
include all leases in the field? (d) You apply for end-of-life royalty
(a) For authorized fields, we will ac- relief.
cept only one joint application for all
leases that are part of the designated § 203.65 How long will BSEE take to
field on the date of application, except evaluate my application?
as provided in paragraph (a)(3) of this (a) We will determine within 20 work-
section and § 203.64. However, we will ing days if your application for royalty
evaluate all acreage that may eventu- relief is complete. If your application
ally become part of the authorized is incomplete, we will explain in writ-
field. Therefore, if you have any other ing what it needs. If you withdraw a
leases that you believe may eventually complete application, you may re-
be part of the authorized field, you apply.
must submit data for these leases ac- (b) We will evaluate your first appli-
cording to § 203.81. cation on a field within 180 days, evalu-

(1) The Regional Director maintains ate your first application on a develop-
a Field Names Master List with up- ment project or an expansion project
30
within 150 days and evaluate a redeter- (c) We may ask to extend the review
mination under § 203.75 within 120 days period for your application under the
after we determine that it is complete. conditions in the following table.
If . . . Then we may . . .
(1) We need more records to audit sunk costs, Ask to extend the 120-day or 180-day evaluation period. The
extension we request will equal the number of days between
when you receive our request for records and the day we re-
ceive the records.
(2) We cannot evaluate your application for a valid reason, Add another 30 days. We may add more than 30 days, but
such as missing vital information or inconsistent or inconclu- only if you agree.
sive supporting data,
(3) We need more data, explanations, or revision, Ask to extend the 120-day or 180-day evaluation period. The
extension we request will equal the number of days between
when you receive our request and the day we receive the in-
formation.
(d) We may change your assumptions § 203.66 What happens if BSEE does
under § 203.62 if our technical evalua- not act in the time allowed?
tion reveals others that are more ap-
If we do not act within the time-
propriate. We may consult with you be-
frames established under § 203.65, you
fore a final decision and will explain
any changes. get royalty relief according to the fol-
(e) We will notify all designated lease lowing table.
operators within a field when royalty
relief is granted.
If you apply for royalty relief for And we do not decide within the time specified, As long as you
(a) An authorized field, You get the minimum suspension volumes specified in § 203.69, Abide by §§ 203.70
and 203.76.
(b) An expansion project, You get a royalty suspension for the first year of production, Abide by §§ 203.70
and 203.76.
(c) A development project, You get a royalty suspension for initial production for the number of Abide by §§ 203.70
months that a decision is delayed beyond the stipulated time- and 203.76.
frames set by § 203.65, plus all the royalty suspension volume
for which you qualify,
§ 203.67 What economic criteria must I § 203.68 What pre-application costs

meet to get royalty relief on an au- will BSEE consider in determining
thorized field or project? economic viability?
We will not approve applications if (a) We will not consider ineligible
we determine that royalty relief can- costs as set forth in § 203.89(h) in deter-
not make the field, development mining economic viability for purposes
project, or expansion project economi- of royalty relief.
cally viable. Your field or project must
(b) We will consider sunk costs ac-
be uneconomic while you are paying
cording to the following table.
royalties and must become economic
with royalty relief.
We will . . . When determining . . .
(1) Include sunk costs, Whether a field that includes a pre-Act lease which has not produced, other than
test production, before the application or redetermination submission date needs
relief to become economic.
(2) Not include sunk costs, Whether an authorized field, a development project, or an expansion project can
become economic with full relief (see § 203.67).
(3) Not include sunk costs, How much suspension volume is necessary to make the field, a development
project, or an expansion project economic (see § 203.69(c)).
(4) Include sunk costs for the project dis- Whether a development project or an expansion project needs relief to become
covery well on each lease, economic.
31
§ 203.69 30 CFR Ch. II (7–1–18 Edition)
§ 203.69 If my application is approved, (b) For development projects, any re-

what royalty relief will I receive? lief we grant applies only to project
If we approve your application, sub- wells and replaces the royalty relief, if
ject to certain conditions, we will not any, with which we issued your lease.
collect royalties on a specified suspen- (c) If your project is economic given
sion volume for your field, develop- the royalty relief with which we issued
ment project, or expansion project. your lease, we will reject the applica-
Suspension volumes include volumes tion.
allocated to a lease under an approved (d) If the lease has earned or may
unit agreement, but exclude any vol- earn deep gas royalty relief under
umes of production that are not nor- §§ 203.40 through 203.49 or ultra-deep gas
mally royalty-bearing under the lease royalty relief under §§ 203.30 through
or the regulations of this chapter (e.g., 203.36, we will take the deep gas roy-
fuel gas).
alty relief or ultra-deep gas royalty re-
(a) For authorized fields, the min-
imum royalty-suspension volumes are: lief into account in determining wheth-
(1) 17.5 million barrels of oil equiva- er further royalty relief for a develop-
lent (MMBOE) for fields in 200 to 400 ment project is necessary for produc-
meters of water; tion to be economic.
(2) 52.5 MMBOE for fields in 400 to 800 (e) If neither paragraph (c) nor (d) of
meters of water; and this section apply, the minimum royalty
(3) 87.5 MMBOE for fields in more suspension volumes are as shown in the
than 800 meters of water. following table:
For . . . The minimum royalty suspension volume is . . . Plus . . .
(1) RS leases in the GOM or A volume equal to the combined royalty suspension volumes 10 percent of the median of
leases offshore Alaska, (or the volume equivalent based on the data in your ap- the distribution of known re-
proved application for other forms of royalty suspension) coverable resources upon
with which BSEE issued the leases participating in the ap- which BSEE based approval
plication that have or plan a well into a reservoir identified of your application from all
in the application, reservoirs included in the
project.
(2) Leases offshore Alaska or A volume equal to 10 percent of the median of the distribu-
other deep water GOM tion of known recoverable resources upon which BSEE
leases issued in sales after based approval of your application from all reservoirs in-
November 28, 2000, cluded in the project.
(f) If your application includes pre- distribution of known recoverable re-

Act leases in different categories of sources upon which we based approval
water depth, we apply the minimum of your application from all reservoirs
royalty suspension volume for the included in your project plus any sus-
deepest such lease then assigned to the pension volumes required under § 203.66.
field. We base the water depth and If we determine that your expansion
makeup of a field on the water-depth project may be economic only with
delineations in the ‘‘Lease Terms and more relief, we will determine and
Economic Conditions’’ map and the grant you the royalty suspension vol-
‘‘Fields Directory’’ documents and up- ume necessary to make the project
dates in effect at the time your appli- economic.
cation is deemed complete. These pub- (i) The royalty suspension volume ap-
lications are available from the BSEE plicable to specific leases will continue
Gulf of Mexico Regional Office. through the end of the month in which
(g) You will get a royalty suspension cumulative production reaches that
volume above the minimum if we de- volume. You must calculate cumu-
termine that you need more to make lative production from all the leases in
the field or development project eco- the authorized field or project that are
nomic.
entitled to share the royalty suspen-

(h) For expansion projects, the min- sion volume.
imum royalty suspension volume
equals 10 percent of the median of the
32
§ 203.70 What information must I pro- 203.81, 203.90, and 203.91 describe what
vide after BSEE approves relief? these reports must include. The BSEE
You must submit reports to us as in- Regional Office for your region will
dicated in the following table. Sections prescribe the formats.
Required report When due to BSEE Due date extensions
(a) Fabricator’s confirmation report. Within 18 months after approval of relief. BSEE Director may grant you an exten-
sion under § 203.79(c) for up to 6
months.
(b) Post-production report. Within 120 days after the start of pro- With acceptable justification from you,
duction that is subject to the approved the BSEE Regional Director for your
royalty suspension volume. region may extend the due date up to
30 days.
§ 203.71 How does BSEE allocate a (a) If your authorized field has an ap-
field’s suspension volume between proved royalty suspension volume
my lease and other leases on my under §§ 203.67 and 203.69, we will sus-
field? pend payment of royalties on produc-
The allocation depends on when pro- tion from all leases in the field that
duction occurs, when we issued the participate in the application until
lease, when we assigned it to the field, their cumulative production equals the
and whether we award the volume sus- approved volume. The following condi-
pension by an approved application or tions also apply:
establish it in the lease terms, as pre-
scribed in this section.
If . . . Then . . . And . . .
(1) We assign an eligible We will not change your authorized field’s royalty Production from the assigned eligible lease(s)
lease to your author- suspension volume determined under counts toward the royalty suspension volume
ized field after we ap- § 203.69, for the authorized field, but the eligible lease
prove relief, will not share any remaining royalty suspen-
sion volume for the authorized field after the
eligible lease has produced the volume appli-
cable under 30 CFR 560.114.
(2) We assign a pre-Act We will not change your field’s royalty suspen- The assigned lease(s) may share in any remain-
or post-November 2000 sion volume, ing royalty relief by filing the short-form appli-
deep water lease to cation specified in § 203.83 and authorized in
your field after we ap- § 203.82. An assigned RS lease also gets any
prove your application, portion of its royalty suspension volume re-
maining even after the field has produced the
approved relief volume.
(3) We assign another In our evaluation of your authorized field, we will (i) You toll the time period for evaluation until
lease that you operate take into account the value of any royalty relief you modify your application to be consistent
to your field while we the added lease already has under 30 CFR with the newly constituted field;
are evaluating your ap- 560.114 or its lease document. If we find your (ii) We have an additional 60 days to review the
plication, authorized field still needs additional royalty new information; and
suspension volume, that volume will be at (iii) The assigned pre-Act lease or royalty sus-
least the combined royalty suspension volume pension lease shares the royalty suspension
to which all added leases on the field are enti- we grant to the newly constituted field. An eli-
tled, or the minimum suspension volume of the gible lease does not share the royalty suspen-
authorized field, whichever is greater, sion we grant to the new field. If you do not
agree to toll, we will have to reject your appli-
cation due to incomplete information. Produc-
tion from an assigned eligible lease counts to-
ward the royalty suspension volume that we
grant under § 203.69 for your authorized field,
but you will not owe royalty on production from
the eligible lease until it has produced the vol-
ume applicable under 30 CFR 560.114.
33
§ 203.72 30 CFR Ch. II (7–1–18 Edition)
If . . . Then . . . And . . .
(4) We assign another We will change your field’s minimum suspension (i) You both toll the time period for evaluation
operator’s lease to your volume provided the assigned lease joins the until both of you modify your application to be
field while we are eval- application and is entitled to a larger minimum consistent with the new field;
uating your application, suspension volume, (ii) We have an additional 60 days to review the
new information; and
(iii) The assigned lease(s) shares the royalty
suspension we grant to the new field. If you
(the original applicant) do not agree to toll, the
other operator’s lease retains any suspension
volume it has or may share in any relief that
we grant by filing the short form application
specified in § 203.83 and authorized in
§ 203.82.
(5) We reassign a well on The past production from the well counts toward For any field based relief, the past production for
a pre-Act, eligible, or the royalty suspension volume that we grant that well will not count toward any royalty sus-
royalty suspension under § 203.69 to field B, pension volume that we grant under § 203.69
lease from field A to to field A. Moreover, past production from that
field B, well will count toward the royalty suspension
volume applicable for the lease under 30 CFR
560.114 if the well is on an eligible lease or
under 30 CFR 560.124 if the well is on a roy-
alty suspension lease.
(b) When a project has more than one § 203.73 How do suspension volumes
lease, the royalty suspension volume apply to natural gas?
for each lease equals that lease’s actual You must measure natural gas pro-
production from the project (or produc- duction under the royalty-suspension
tion allocated under an approved unit volume as follows: 5.62 thousand cubic
agreement) until total production for feet of natural gas, measured in accord-
all leases in the project equals the ance with 30 CFR part 250, subpart L,
project’s approved royalty suspension equals one barrel of oil equivalent.
volume.
(c) You may receive a royalty-sus- § 203.74 When will BSEE reconsider its
pension volume only if your entire determination?
lease is west of 87 degrees, 30 minutes You may request a redetermination
West longitude. If the field lies on both after we withdraw approval or after
sides of this meridian, only leases lo- you renounce royalty relief, unless we
cated entirely west of the meridian will withdraw approval due to your pro-
receive a royalty-suspension volume. viding false or intentionally inaccurate
information. Under certain conditions
§ 203.72 Can my lease receive more
than one suspension volume? you may also request a redetermina-
tion if we deny your application or if
Yes. You may apply for royalty relief you want your approved royalty sus-
that involves more than one suspension pension volume to change. In these in-
volume under § 203.62 in two cir- stances, to be eligible for a redeter-
cumstances. mination, at least one of the following
(a) Each field that includes your four conditions must occur.
lease may receive a separate royalty- (a) You have significant new G&G
suspension volume, if it meets the eval- data and you previously have not ei-
uation criteria of § 203.67. ther requested a redetermination or re-
(b) An expansion project on your applied for relief after we withdrew ap-
lease may receive a separate royalty- proval or you relinquished royalty re-
suspension volume, even if we have al- lief. ‘‘Significant’’ means that the new
ready granted a royalty-suspension G&G data:
volume to the field that encompasses (1) Results from drilling new wells or
the project. But the reserves associated getting new three-dimensional seismic
with the project must not have been data and information (but not reinter-
part of our original determination, and preting old data);

the project must meet the evaluation (2) Did not exist at the time of the
criteria of § 203.67. earlier application; and
34
(3) Changes your estimates of gross quest. In our evaluation, we may find
resource size, quality, or projected flow that you should receive a larger, equiv-
rates enough to materially affect the alent, smaller, or no suspension vol-
results of our earlier determination. ume. This means we could find that
(b) You demonstrate in your new ap- you do not qualify for the amount of
plication that the technology that relief previously granted or for any re-
most efficiently develops this field or lief at all.
lease was not considered or deemed fea-
sible in the original application. Your § 203.76 When might BSEE withdraw
newly proposed technology must im- or reduce the approved size of my
prove the profitability, under equiva- relief?
lent market conditions, of the field or We will withdraw approval of relief
lease relative to the development sys- for any of the following reasons.
tem proposed in the prior application. (a) You change the type of develop-
(c) Your current reference price de- ment system proposed in your applica-
creases by more than 25 percent from tion (e.g., change from a fixed platform
your base reference price as calculated to floating production system, or from
under this paragraph. an independent development and pro-
(1) Your current reference price is a duction system to one with subsea
weighted-average of daily closing wells tied back to a host production fa-
prices on the NYMEX for light sweet cility, etc.).
crude oil and natural gas over the most (b) You do not start building the pro-
recent full 12 calendar months; posed development and production sys-
(2) Your base reference price is a tem within 18 months of the date we
weighted average of daily closing approved your application, unless the
prices on the NYMEX for light sweet BSEE Director grants you an extension
crude oil and natural gas for the full 12 under § 203.79(c). If you start building
calendar months preceding the date of the proposed system and then suspend
your most recently approved applica- its construction before completion, and
tion for this royalty relief; and you do not restart continuous building
(3) The weighting factors are the proof the proposed system within 18
portions of the total production vol- months of our approval, we will with-
ume (in BOE) for oil and gas associated draw the relief we granted.
with the most likely scenario (identi- (c) Your actual development costs
fied in §§ 203.85 and 203.88) from your are less than 80 percent of the eligible
most recently approved application for development costs estimated in your
this royalty relief. application’s most likely scenario, and
(d) Before starting to build your de- you do not report that fact in your
velopment and production system, you post-production development report
have revised your estimated develop- (§ 203.70). Development costs are those
ment costs, and they are more than 120 expenditures defined in § 203.89(b) in-
percent of the eligible development curred between the application submis-
costs associated with the most likely sion date and start of production. If
scenario from your most recently ap- you report this fact in the post-produc-
proved application for this royalty re- tion development report, you may re-
lief. tain the lesser of 50 percent of the
original royalty suspension volume or
§ 203.75 What risk do I run if I request 50 percent of the median of the dis-
a redetermination? tribution of the potentially recoverable
If you request a redetermination resources anticipated in your applica-
after we have granted you a suspension tion.
volume, you could lose some or all of (d) We granted you a royalty-suspen-
the previously granted relief. This can sion volume after you qualified for a
happen because you must file a new redetermination under § 203.74(c), and
complete application and pay the re- we find out your actual development
quired fee, as discussed in § 203.62. We costs are less than 90 percent of the eli-
will evaluate your application under gible development costs associated

§ 203.67 using the conditions prevailing with your application’s most likely
at the time of your redetermination re- scenario. Development costs are those
35
§ 203.77 30 CFR Ch. II (7–1–18 Edition)
expenditures defined in § 203.89(b) in- § 203.78 Do I keep relief approved by

curred between your application sub- BSEE under this part for my lease,
mission date and start of production. unit or project if prices rise signifi-
(e) You do not send us the fabrication cantly?
confirmation report or the post-produc- If prices rise above a base price
tion development report, or you pro- threshold for light sweet crude oil or
vide false or intentionally inaccurate natural gas, you must pay full royal-
information that was material to our
ties on production otherwise subject to
granting royalty relief under this sec-
royalty relief approved by BSEE under
tion. You must pay royalties and late-
§§ 203.60–203.77 for your lease, unit or
payment interest determined under 30
U.S.C. 1721 and 30 CFR 1218.54 on all project as prescribed in this section.
volumes for which you used the royalty (a) The following table shows the
suspension. You also may be subject to base price threshold for various types
penalties under other provisions of law. of leases, subject to paragraph (b) of
this section. Note that, for post-No-
§ 203.77 May I voluntarily give up re- vember 2000 deepwater leases in the
lief if conditions change? GOM, price thresholds apply on a lease
Yes, you may voluntarily give up re- basis, so different leases on the same
lief by sending a letter to that effect to development project or expansion
the BSEE Regional office for your re- project approved for royalty relief may
gion. have different price thresholds.
For . . . The base price threshold is . . .
(1) Pre-Act leases in the GOM, set by statute.

(2) Post-November 2000 deep water leases in the GOM or indicated in your original lease agreement or, if none, those in
leases offshore of Alaska for which the lease or Notice of the Notice of Sale under which your lease was issued.
Sale set a base price threshold,
(3) Post-November 2000 deep water leases in the GOM or the threshold set by statute for pre-Act leases.
leases offshore of Alaska for which the lease or Notice of
Sale did not set a base price threshold,
(b) An exception may occur if we de- (d) Suppose your base gas price
termine that the price thresholds in threshold set under paragraph (a) is
paragraphs (a)(2) or (a)(3) of this sec- $3.50 per million British thermal units
tion mean the royalty suspension vol- (Btu), and the daily closing NYMEX
ume set under § 203.69 and in lease light sweet crude oil prices for the pre-
terms would provide inadequate en- vious calendar year exceeds $3.50 per
couragement to increase production or million Btu, as adjusted in paragraph
development, in which circumstance (h) of this section. In this case, we re-
we could specify a different set of price tract the royalty relief authorized in
thresholds on a case-by-case basis. this subpart and you must:
(c) Suppose your base oil price
(1) Pay royalties on all gas produc-
threshold set under paragraph (a) is
$28.00 per barrel, and the daily closing tion for the previous year at the lease
NYMEX light sweet crude oil prices for stipulated royalty rate plus interest
the previous calendar year exceeds (under 30 U.S.C. 1721 and 30 CFR 1218.54)
$28.00 per barrel, as adjusted in para- by March 31 of the current calendar
graph (h) of this section. In this case, year, and
we retract the royalty relief authorized (2) Pay royalties on all your gas pro-
in this subpart and you must: duction in the current year.
(1) Pay royalties on all oil production (e) Production under both paragraphs
for the previous year at the lease stipu- (c) and (d) of this section counts as
lated royalty rate plus interest (under part of the royalty-suspension volume.
30 U.S.C. 1721 and 30 CFR 1218.54) by (f) You are entitled to a refund or
March 31 of the current calendar year,
credit, with interest, of royalties paid

and on any production (that counts as part
(2) Pay royalties on all your oil proof the royalty-suspension volume):
duction in the current year.
36
(1) Of oil if the arithmetic average of They are judicially reviewable under
the closing prices for the current cal- section 10(a) of the Administrative Pro-
endar year is $28.00 per barrel or less, cedure Act (5 U.S.C. 702) only if you file
as adjusted in paragraph (h) of this sec- an action within 30 days of the date
tion, and you receive our decision.
(2) Of gas if the arithmetic average of
the closing natural gas prices for the § 203.80 When can I get royalty relief if
current calendar year is $3.50 per mil- I am not eligible for royalty relief
lion Btu or less, as adjusted in para- under other sections in the sub-
graph (h) of this section. part?
(g) You must follow our regulations We may grant royalty relief when it
in the Office of Natural Resources Rev- serves the statutory purposes summa-
enue, 30 CFR chapter XII, for receiving rized in § 203.1 and our formal relief
refunds or credits. programs, including but not limited to
(h) We change the prices referred to the applicable levels of the royalty sus-
in paragraphs (c), (d), and (f) of this pension volumes and price thresholds,
section periodically. For pre-Act provide inadequate encouragement to
leases, these prices change during each promote development or increase pro-
calendar year after 1994 by the percent- duction. Unless your lease lies offshore
age that the implicit price deflator for of Alaska or wholly west of 87 degrees,
the gross domestic product changed 30 minutes West longitude in the GOM,
during the preceding calendar year. your lease must be producing to qual-
For post-November 2000 deepwater ify for relief. Before you may apply for
leases, these prices change as indicated royalty relief apart from our programs
in the lease instrument or in the No- for end-of-life leases or for pre-Act deep
tice of Sale under which we issued the water leases and development and ex-
lease. pansion projects, we must agree that
your lease or project has two or more
§ 203.79 How do I appeal BSEE’s deci- of the following characteristics:
sions related to royalty relief for a
deepwater lease or a development (a) The lease has produced for a sub-
or expansion project? stantial period and the lessee can re-
cover significant additional resources.
(a) Once we have designated your
Significant additional resources mean
lease as part of a field and notified you
enough to allow production for at least
and other affected operators of the des-
a year more than would be profitable
ignation, you can request reconsider-
without royalty relief.
ation by sending the BSEE Director a
letter within 15 days that also states (b) Valuable facilities (e.g., a plat-
your reasons. The BSEE Director’s re- form or pipeline that would be removed
sponse is the final agency action. upon lease relinquishment) exist that
(b) Our decisions on your application we do not expect a successor lessee to
for relief from paying royalty under use. If the facilities are located off the
§ 203.67 and the royalty-suspension vol- lease, their preservation must depend
umes under § 203.69 are final agency ac- on continued production from the lease
tions. applying for royalty relief. We will
(c) If you cannot start construction only consider an allocable share of
by the deadline in § 203.76(b) for reasons costs for off-lease facilities in the relief
beyond your control (e.g., strike at the application.
fabrication yard), you may request an (c) A substantial risk exists that no
extension up to 1 year by writing the new lessee will recover the resources.
BSEE Director and stating your rea- (d) The lessee made major efforts to
sons. The BSEE Director’s response is reduce operating costs too recently to
the final agency action. use the formal program for royalty re-
(d) We will notify you of all final lief (e.g., recent significant change in
agency actions by certified mail, re- operations).
turn receipt requested. Final agency (e) Circumstances beyond the lessee’s
actions are not subject to appeal to the control, other than water depth, pre-
Interior Board of Land Appeals under clude reliance on one of the existing
30 CFR part 290 and 43 CFR part 4. royalty relief programs.
37
§ 203.81 30 CFR Ch. II (7–1–18 Edition)
REQUIRED REPORTS lowing table by an X, that apply to

your field. Sections 203.83 through
§ 203.81 What supplemental reports do 203.91 describe these reports in detail.
royalty-relief applications require?
(a) You must send us the supple-
mental reports, indicated in the fol-
Deep water
End-of-life
Required reports lease Expansion Development
Pre-act lease
project project
(1) Administrative information Report ................................... X X X X

(2) Net revenue & relief justification report ........................... X ........................ ........................
(3) Economic viability & relief justification report (RSVP
model inputs justified by other required reports) .............. ........................ X X X
(4) G&G report ...................................................................... ........................ X X X
(5) Engineering report ........................................................... ........................ X X X
(6) Production report ............................................................. ........................ X X X
(7) Deep water cost report .................................................... ........................ X X X
(8) Fabricator’s confirmation report ....................................... ........................ X X X
(9) Post-production development report ............................... ........................ X X X
(b) You must certify that all infor- 44 U.S.C. 3501 et seq., and assigned OMB
mation in your application, fabrica- control number 1010–0071.
tor’s confirmation and post-production (a) We use the information to deter-
development reports is accurate, com- mine whether royalty relief will result
plete, and conforms to the most recent in production that wouldn’t otherwise
content and presentation guidelines occur. We rely largely on your informa-
available from the BSEE Regional of- tion to make these determinations.
fice for your region. (1) Your application for royalty relief
(c) With your application and post- must contain enough information on fi-
production development report, you nances, economics, reservoirs, G&G
must submit an additional report pre- characteristics, production, and engi-
pared by an independent CPA that: neering estimates for us to determine
(1) Assesses the accuracy of the his- whether:
torical financial information in your (i) We should grant relief under the
report; and law, and
(2) Certifies that the content and (ii) The requested relief will ulti-
mately recover more resources and re-
presentation of the financial data and
turn a reasonable profit on project in-
information conform to our most re-
vestments.
cent guidelines on royalty relief. This
(2) Your fabricator confirmation and
means the data and information must:
post-production development reports
(i) Include only eligible costs that must contain enough information for
are incurred during the qualification us to verify that your application rea-
months; and sonably represented your plans.
(ii) Be shown in the proper format. (b) Applicants (respondents) are Fed-
(d) You must identify the people in eral OCS oil and gas lessees. Applica-
the CPA firm who prepared the reports tions are required to obtain or retain a
referred to in paragraph (c) of this sec- benefit. Therefore, if you apply for roy-
tion and make them available to us to alty relief, you must provide this infor-
respond to questions about the histor- mation. We will protect information
ical financial information. We may considered proprietary under applica-
also further review your records to sup- ble law and under regulations at § 203.63
port this information. and 30 CFR part 250.
(c) The Paperwork Reduction Act of
§ 203.82 What is BSEE’s authority to 1995 requires us to inform you that we
collect this information? may not conduct or sponsor, and you
The Office of Management and Budg- are not required to respond to, a collec-
et (OMB) approved the information col- tion of information unless it displays a
lection requirements in part 203 under currently valid OMB control number.
38
(d) Send comments regarding any as- Administration of Royalty Relief for
pect of the collection of information End-of-Life Leases’’, U.S. Department
under this part, including suggestions of the Interior, BSEE. Qualifying
for reducing the burden, to the Infor- months for an oil and gas lease are the
mation Collection Clearance Officer, most recent 12 months out of the last
Bureau of Safety and Environmental 15 months that you produced at least
Enforcement, 45600 Woodland Road, 100 BOE per day on average. Qualifying
Sterling, VA 20166. months for other than oil and gas
[76 FR 64462, Oct. 18, 2011, as amended at 81
leases are the most recent 12 of the last
FR 36148, June 6, 2016] 15 months having some production.
(a) The cash flow table you submit
§ 203.83 What is in an administrative must include historical data for:
information report? (1) Lease production subject to roy-
This report identifies the field or alty;
lease for which royalty relief is re- (2) Total revenues;
quested and must contain the following (3) Royalty payments out of produc-
items: tion;
(a) The field or lease name; (4) Total allowable costs; and
(b) The serial number of leases we (5) Transportation and processing
have assigned to the field, names of the costs.
lease title holders of record, the lease (b) Do not include in your cash flow
operators, and whether any lease is table the non-allowable costs listed at
part of a unit; 30 CFR 1220.013 or:
(c) Well number, API number, loca- (1) OCS rental payments on the
tion, and status of each well that has lease(s) in the application;
been drilled on the field or lease or (2) Damages and losses;
project (not required for non-oil and (3) Taxes;
gas leases); (4) Any costs associated with explor-
(d) The location of any new wells pro- atory activities;
posed under the terms of the applica- (5) Civil or criminal fines or pen-
tion (not required for non-oil and gas alties;
leases); (6) Fees for your royalty relief appli-
(e) A description of field or lease his- cation; and
tory; (7) Costs associated with existing ob-
(f) Full information as to whether ligations (e.g., royalty overrides or
you will pay royalties or a share of pro- other forms of payment for acquiring
duction to anyone other than the the lease, depreciation on previously
United States, the amount you will acquired equipment or facilities).
pay, and how much you will reduce this (c) We may, in reviewing and evalu-
payment if we grant relief; ating your application, disallow costs
(g) The type of royalty relief you are when you have not shown they are nec-
requesting; essary to operate the lease, or if they
(h) Confirmation that BOEM ap- are inconsistent with end-of-life oper-
proved a DOCD or supplemental DOCD ations.
(Deep Water expansion project applica-
tions only); and § 203.85 What is in an economic viabil-
(i) A narrative description of the de- ity and relief justification report?
velopment activities associated with This report should show that your
the proposed capital investments and project appears economic without roy-
an explanation of proposed timing of alties and sunk costs using the RSVP
the activities and the effect on produc- model we provide. The format of the re-
tion (Deep Water applications only). port and the assumptions and param-
eters we specify are found in the
§ 203.84 What is in a net revenue and ‘‘Guidelines for the Application, Re-
relief justification report? view, Approval and Administration of
This report presents cash flow data the Deep Water Royalty Relief Pro-
for 12 qualifying months, using the for- gram,’’ U.S. Department of the Inte-
mat specified in the ‘‘Guidelines for rior, BSEE. Clearly justify each param-
the Application, Review, Approval, and eter you set in every scenario you
39
§ 203.86 30 CFR Ch. II (7–1–18 Edition)
specify in the RSVP. You may provide the-art processing technique in a for-
supplemental information, including mat readable by BSEE and specified by
your own model and results. The eco- the deep water royalty relief guide-
nomic viability and relief justification lines;
report must contain the following (2) Interpreted 2D/3D seismic survey
items for an oil and gas lease. lines reflecting any available state-of-
(a) Economic assumptions we provide the-art processing technique identi-
which include: fying all known and prospective pay
(1) Starting oil and gas prices; horizons, wells, and fault cuts;
(2) Real price growth; (3) Digital velocity surveys in the
(3) Real cost growth or decline rate, format of the GOM region’s letter to
if any; lessees of 10/1/90;
(4) Base year; (4) Plat map of ‘‘shot points;’’ and
(5) Range of discount rates; and
(5) ‘‘Time slices’’ of potential hori-
(6) Tax rate (for use in determining
zons.
after-tax sunk costs).
(b) Analysis of projected cash flow (b) Well data which includes:
(from the date of the application using (1) Hard copies of all well logs in
annual totals and constant dollar val- which—
ues) which shows: (i) The 1-inch electric log shows pay
(1) Oil and gas production; zones and pay counts and lithologic
(2) Total revenues; and paleo correlation markers at least
(3) Capital expenditures; every 500-feet,
(4) Operating costs; (ii) The 1-inch type log shows missing
(5) Transportation costs; and sections from other logs where faulting
(6) Before-tax net cash flow without occurs,
royalties, overrides, sunk costs, and in- (iii) The 5-inch electric log shows pay
eligible costs. zones and pay counts and labeled
(c) Discounted values which include: points used in establishing resistivity
(1) Discount rate used (selected from of the formation, 100 percent water
within the range we specify). saturated (Ro) and the resistivity of the
(2) Before-tax net present value with- undisturbed formation (Rt), and
out royalties, overrides, sunk costs, (iv) The 5-inch porosity logs show
and ineligible costs. pay zones and pay counts and labeled
(d) Demonstrations that: points used in establishing reservoir
(1) All costs, gross production, and porosity or labeled points showing val-
scheduling are consistent with the data ues used in calculating reservoir poros-
in the G&G, engineering, production, ity such as bulk density or transit
and cost reports (§§ 203.86 through time;
203.89) and (2) Digital copies of all well logs
(2) The development and production spudded before December 1, 1995;
scenarios provided in the various re- (3) Core data, if available;
ports are consistent with each other
(4) Well correlation sections;
and with the proposed development
system. You can use up to three sce- (5) Pressure data;
narios (conservative, most likely, and (6) Production test results;
optimistic), but you must link each to (7) Pressure-volume-temperature
a specific range on the distribution of analysis, if available; and
resources from the RSVP Resource (8) A table listing the wells and com-
Module. pletions, and indicating which sands
and fault blocks will be targeted for
§ 203.86 What is in a G&G report? completion or recompletion.
This report supports the reserve and (c) Map interpretations which in-
resource estimates used in the eco- cludes for each reservoir in the field:
nomic evaluation and must contain (1) Structure maps consisting of top
each of the following elements. and base of sand maps showing well
(a) Seismic data which includes: and seismic shot point locations;
(1) Non-interpreted 2D/3D survey (2) Isopach maps for net sand, net oil,
lines reflecting any available state-of- net gas, all with well locations;
40
(3) Maps indicating well surface and fied by two positive reserve and re-
bottom hole locations, location of de- source points on the aggregated dis-
velopment facilities, and shot points; tribution. The range at the low end of
and the distribution will be associated with
(4) An explanation for excluding the the conservative development and pro-
reservoirs you are not planning to de- duction scenario; the middle range will
velop. be related to the most likely develop-
(d) Reservoir-specific data which in- ment and production scenario; and, the
cludes: high end range will be consistent with
(1) Probability of reservoir occur- the optimistic development and pro-
rence with hydrocarbons; duction scenario.
(2) Probability the hydrocarbon in
the reservoir is all oil and the prob- § 203.87 What is in an engineering re-
ability it is all gas; port?
(3) Distributions or point estimates This report defines the development
(accompanied by explanations of why plan and capital requirements for the
distributions less appropriately reflect economic evaluation and must contain
the uncertainty) for the parameters the following elements.
used to estimate reservoir size, i.e., (a) A description of the development
acres and net thickness; concept (e.g., tension leg platform,
(4) Most likely values for porosity, fixed platform, floater type, subsea
salt water saturation, volume factor tieback, etc.) which includes:
for oil formation, and volume factor for (1) Its size along with basic design
gas formation; specifications and drawings; and
(5) Distributions or point estimates (2) The construction schedule.
(accompanied by explanations of why (b) An identification of planned wells
distributions less appropriately reflect which includes:
the uncertainty) for recovery effi- (1) The number;
ciency (in percent) and oil or gas recov- (2) The type (platform, subsea,
ery (in stock-tank-barrels per acre-foot vertical, deviated, horizontal);
or in thousands of cubic feet per acre (3) The well depth;
foot); (4) The drilling schedule;
(6) A gas/oil ratio distribution or (5) The kind of completion (single,
point estimate (accompanied by expla- dual, horizontal, etc.); and
nations of why distributions less appro- (6) The completion schedule.
priately reflect the uncertainty) for (c) A description of the production
each reservoir; system equipment which includes:
(7) A yield distribution or point esti- (1) The production capacity for oil
mate (accompanied by explanations of and gas and a description of limiting
why distributions less appropriately re- component(s);
flect the uncertainty) for each gas res- (2) Any unusual problems (low grav-
ervoir; and ity, paraffin, etc.);
(8) Reserve or resource distribution (3) All subsea structures;
by reservoir. (4) All flowlines; and
(e) Aggregated reserve and resource (5) Schedule for installing the pro-
data which includes: duction system.
(1) The aggregated distributions for (d) A discussion of any plans for
reserves and resources (in BOE) and oil multi-phase development which in-
fraction for your field computed by the cludes the conceptual basis for devel-
resource module of our RSVP model; oping in phases and goals or milestones
(2) A description of anticipated hy- required for starting later phases.
drocarbon quality (i.e., specific grav- (e) A set of development scenarios
ity); and consisting of activity timing and scale
(3) The ranges within the aggregated associated with each of up to three pro-
distribution for reserves and resources duction profiles (conservative, most
that define the development and pro- likely, optimistic) provided in the pro-
duction scenarios presented in the en- duction report for your field (§ 203.88).
gineering and production reports. Typi- Each development scenario and produc-
cally there will be three ranges speci- tion profile must denote the likely
41
§ 203.88 30 CFR Ch. II (7–1–18 Edition)
events should the field size turn out to (d) Transportation costs, based on his-
be within a range represented by one of torical costs, engineering estimates, or
the three segments of the field size dis- analogous projects. These costs cover:
tribution. If you send in fewer than (1) Oil or gas tariffs from pipeline or
three scenarios, you must explain why tankerage;
fewer scenarios are more efficient (2) Trunkline and tieback lines; and
across the whole field size distribution. (3) Gas plant processing for natural
gas liquids.
§ 203.88 What is in a production re- (e) Abandonment costs, based on histor-
port? ical costs, engineering estimates, or analo-
This report supports your develop- gous projects. You should provide the
ment and production timing and prod- costs to plug and abandon only wells
uct quality expectations and must con- and to remove only production systems
tain the following elements. for which you have not incurred costs
(a) Production profiles by well com- as of the time of application submis-
pletion and field that specify the ac- sion. You should also include a point
tual and projected production by year estimate or distribution of prospective
for each of the following products: oil, salvage value for all potentially reus-
condensate, gas, and associated gas. able facilities and materials, along
The production from each profile must with the source and an explanation of
be consistent with a specific level of re- the figures provided.
(f) A set of cost estimates consistent
serves and resources on the aggregated
with each one of up to three field-develop-
distribution of field size.
ment scenarios and production profiles
(b) Production drive mechanisms for
(conservative, most likely, optimistic).
each reservoir. You should express costs in constant
§ 203.89 What is in a cost report? real dollar terms for the base year. You
may also express the uncertainty of
This report lists all actual and pro- each cost estimate with a minimum
jected costs for your field, must ex- and maximum percentage of the base
plain and document the source of each value.
cost estimate, and must identify the (g) A spending schedule. You should
following elements. provide costs for each year (in real dol-
(a) Sunk costs. Report sunk costs in lars) for each category in paragraphs
dollars not adjusted for inflation and (a) through (f) of this section.
only if you have documentation. (h) A summary of other costs which are
(b) Appraisal, delineation and develop- ineligible for evaluating your need for re-
ment costs. Base them on actual spend- lief. These costs cover:
ing, current authorization for expendi- (1) Expenses before first discovery on
ture, engineering estimates, or analo- the field;
gous projects. These costs cover: (2) Cash bonuses;
(1) Platform well drilling and average (3) Fees for royalty relief applica-
depth; tions;
(2) Platform well completion; (4) Lease rentals, royalties, and pay-
(3) Subsea well drilling and average ments of net profit share and net rev-
depth; enue share;
(5) Legal expenses;
(4) Subsea well completion;
(6) Damages and losses;
(5) Production system (platform); and (7) Taxes;
(6) Flowline fabrication and installa- (8) Interest or finance charges, in-
tion. cluding those embedded in equipment
(c) Production costs based on historical leases;
costs, engineering estimates, or analogous (9) Fines or penalties; and
projects. These costs cover: (10) Money spent on previously exist-
(1) Operation; ing obligations (e.g., royalty overrides
(2) Equipment; and or other forms of payment for acquir-
(3) Existing royalty overrides (we ing a financial position in a lease, ex-
will not use the royalty overrides in penditures for plugging wells and re-
evaluations). moving and abandoning facilities that
42
existed on the application submission cluded more than one development sce-
date). nario, you need to compare actual
costs with those in your scenario of
§ 203.90 What is in a fabricator’s con- most likely development. Also, you
firmation report? must have this report certified by an
This report shows you have com- independent CPA according to
mitted in a timely way to the approved § 203.81(c).
system for production. This report
must include the following (or its Subpart C—Federal and Indian Oil
equivalent for unconventionally ac- [Reserved]
quired systems):
(a) A copy of the contract(s) under Subpart D—Federal and Indian
which the fabrication yard is building
the approved system for you;
Gas [Reserved]
(b) A letter from the contractor
building the system to the BSEE Re- Subpart E—Solid Minerals, General
gional Director for your region certi- [Reserved]
fying when construction started on
your system; and Subpart F [Reserved]
(c) Evidence of an appropriate down
payment or equal action that you’ve Subpart G—Other Solid Minerals
started acquiring the approved system. [Reserved]
§ 203.91 What is in a post-production
development report? Subpart H—Geothermal
For each cost category in the deep Resources [Reserved]
water cost report, you must compare
actual costs up to the date when pro- Subpart I—OCS Sulfur [Reserved]
duction starts to your planned pre-pro-
duction costs. If your application in- PART 219 [RESERVED]
43
PART 250—OIL AND GAS AND SUL- 250.131 Will BSEE notify me before con-
ducting an inspection?
PHUR OPERATIONS IN THE OUTER 250.132 What must I do when BSEE conducts
CONTINENTAL SHELF an inspection?
250.133 Will BSEE reimburse me for my ex-
Subpart A—General penses related to inspections?
AUTHORITY AND DEFINITION OF TERMS DISQUALIFICATION
Sec. 250.135 What will BSEE do if my operating
250.101 Authority and applicability. performance is unacceptable?
250.102 What does this part do? 250.136 How will BSEE determine if my op-
250.103 Where can I find more information erating performance is unacceptable?
about the requirements in this part?
250.104 How may I appeal a decision made SPECIAL TYPES OF APPROVALS
under BSEE regulations?
250.105 Definitions. 250.140 When will I receive an oral approval?
250.141 May I ever use alternate procedures
PERFORMANCE STANDARDS or equipment?
250.142 How do I receive approval for depar-
250.106 What standards will the Director use
tures?
to regulate lease operations?
250.107 What must I do to protect health, 250.143–250.144 [Reserved]
safety, property, and the environment? 250.145 How do I designate an agent or a
250.108 What requirements must I follow for local agent?
cranes and other material-handling 250.146 Who is responsible for fulfilling
equipment? leasehold obligations?
250.109 What documents must I prepare and
maintain related to welding? NAMING AND IDENTIFYING FACILITIES AND
250.110 What must I include in my welding WELLS (DOES NOT INCLUDE MODUS)
plan? 250.150 How do I name facilities and wells in
250.111 Who oversees operations under my the Gulf of Mexico Region?
welding plan? 250.151 How do I name facilities in the Pa-
250.112 What standards must my welding cific Region?
equipment meet? 250.152 How do I name facilities in the Alas-
250.113 What procedures must I follow when ka Region?
welding? 250.153 Do I have to rename an existing fa-
250.114 How must I install, maintain, and cility or well?
operate electrical equipment?
250.154 What identification signs must I dis-
250.115–250.117 [Reserved]
play?
GAS STORAGE OR INJECTION 250.160–250.167 [Reserved]
250.118 Will BSEE approve gas injection? SUSPENSIONS
250.119 [Reserved]
250.120 How does injecting, storing, or treat- 250.168 May operations or production be sus-
ing gas affect my royalty payments? pended?
250.121 What happens when the reservoir 250.169 What effect does suspension have on
contains both original gas in place and my lease?
injected gas? 250.170 How long does a suspension last?
250.122 What effect does subsurface storage 250.171 How do I request a suspension?
have on the lease term? 250.172 When may the Regional Supervisor
250.123 [Reserved] grant or direct an SOO or SOP?
250.124 Will BSEE approve gas injection 250.173 When may the Regional Supervisor
into the cap rock containing a sulphur direct an SOO or SOP?
deposit? 250.174 When may the Regional Supervisor
grant or direct an SOP?
FEES
250.175 When may the Regional Supervisor
250.125 Service fees. grant an SOO?
250.126 Electronic payment instructions. 250.176 Does a suspension affect my royalty
payment?
INSPECTION OF OPERATIONS
250.177 What additional requirements may
250.130 Why does BSEE conduct inspec- the Regional Supervisor order for a sus-
tions? pension?
44
Safety & Environmental Enforcement, Interior Pt. 250
PRIMARY LEASE REQUIREMENTS, LEASE TERM 250.289 What must the Conceptual Plan con-
EXTENSIONS, AND LEASE CANCELLATIONS tain?
250.290 What operations require approval of
250.180 What am I required to do to keep my
the Conceptual Plan?
lease term in effect?
250.291 When and how must I submit the
250.181–250.185 [Reserved]
DWOP?
INFORMATION AND REPORTING REQUIREMENTS 250.292 What must the DWOP contain?
250.293 What operations require approval of
250.186 What reporting information and re- the DWOP?
port forms must I submit? 250.294 May I combine the Conceptual Plan
250.187 What are BSEE’s incident reporting and the DWOP?
requirements? 250.295 When must I revise my DWOP?
250.188 What incidents must I report to
BSEE and when must I report them? Subpart C—Pollution Prevention and
250.189 Reporting requirements for inci- Control
dents requiring immediate notification.
250.190 Reporting requirements for inci- 250.300 Pollution prevention.
dents requiring written notification. 250.301 Inspection of facilities.
250.191 How does BSEE conduct incident in-
vestigations? Subpart D—Oil and Gas Drilling Operations
250.192 What reports and statistics must I
submit relating to a hurricane, earth- GENERAL REQUIREMENTS
quake, or other natural occurrence? 250.400 General requirements.
250.193 Reports and investigations of pos- 250.401–250.403 [Reserved]
sible violations.
250.404 What are the requirements for the
250.194 How must I protect archaeological crown block?
resources?
250.405 What are the safety requirements for
250.195 What notification does BSEE require diesel engines used on a drilling rig?
on the production status of wells?
250.406 [Reserved]
250.196 Reimbursements for reproduction
250.407 What tests must I conduct to deter-
and processing costs.
mine reservoir characteristics?
250.197 Data and information to be made
250.408 May I use alternative procedures or
available to the public or for limited in-
equipment during drilling operations?
spection.
250.409 May I obtain departures from these
REFERENCES drilling requirements?
250.198 Documents incorporated by ref- APPLYING FOR A PERMIT TO DRILL

erence.
250.410 How do I obtain approval to drill a
250.199 Paperwork Reduction Act state-
well?
ments—information collection.
250.411 What information must I submit
with my application?
Subpart B—Plans and Information 250.412 What requirements must the loca-
GENERAL INFORMATION tion plat meet?
250.413 What must my description of well
250.200 Definitions. drilling design criteria address?
250.201 What plans and information must I 250.414 What must my drilling prognosis in-
submit before I conduct any activities on clude?
my lease or unit? 250.415 What must my casing and cementing
250.202–250.203 [Reserved] programs include?
250.204 How must I protect the rights of the 250.416 What must I include in the diverter
Federal government? description?
250.205 Are there special requirements if my 250.417 [Reserved]
well affects an adjacent property? 250.418 What additional information must I
submit with my APD?
POST-APPROVAL REQUIREMENTS FOR THE EP,
DPP, AND DOCD CASING AND CEMENTING REQUIREMENTS
250.282 Do I have to conduct post-approval 250.420 What well casing and cementing re-
monitoring? quirements must I meet?
250.421 What are the casing and cementing
DEEPWATER OPERATIONS PLANS (DWOP)
requirements by type of casing string?
250.286 What is a DWOP? 250.422 When may I resume drilling after ce-
250.287 For what development projects must menting?

I submit a DWOP? 250.423 What are the requirements for cas-
250.288 When and how must I submit the ing and liner installation?
Conceptual Plan? 250.424–250.426 [Reserved]
45
Pt. 250 30 CFR Ch. II (7–1–18 Edition)
250.427 What are the requirements for pres- Subpart E—Oil and Gas Well-Completion
sure integrity tests? Operations
250.428 What must I do in certain cementing
and casing situations? 250.500 General requirements.
250.501 Definition.
DIVERTER SYSTEM REQUIREMENTS 250.502 [Reserved]
250.430 When must I install a diverter sys- 250.503 Emergency shutdown system.
tem? 250.504 Hydrogen sulfide.
250.431 What are the diverter design and in- 250.505 Subsea completions.
stallation requirements? 250.506–250.508 [Reserved]
250.432 How do I obtain a departure to di- 250.509 Well-completion structures on fixed
verter design and installation require- platforms.
ments? 250.510 Diesel engine air intakes.
250.433 What are the diverter actuation and 250.511 Traveling-block safety device.
testing requirements? 250.512 Field well-completion rules.
250.434 What are the recordkeeping require- 250.513 Approval and reporting of well-com-
ments for diverter actuations and tests? pletion operations.
250.440–250.451 [Reserved] 250.514 Well-control fluids, equipment, and
operations.
DRILLING FLUID REQUIREMENTS 250.515–250.517 [Reserved]
250.518 Tubing and wellhead equipment.
250.452 What are the real-time monitoring
requirements for Arctic OCS exploratory CASING PRESSURE MANAGEMENT
drilling operations?
250.455 What are the general requirements 250.519 What are the requirements for cas-
for a drilling fluid program? ing pressure management?
250.520 How often do I have to monitor for
250.456 What safe practices must the drill-
casing pressure?
ing fluid program follow?
250.521 When do I have to perform a casing
250.457 What equipment is required to mon-
diagnostic test?
itor drilling fluids?
250.522 How do I manage the thermal effects
250.458 What quantities of drilling fluids are
caused by initial production on a newly
required?
completed or recompleted well?
250.459 What are the safety requirements for
250.523 When do I have to repeat casing di-
drilling fluid-handling areas?
agnostic testing?
OTHER DRILLING REQUIREMENTS 250.524 How long do I keep records of casing
pressure and diagnostic tests?
250.460 What are the requirements for con- 250.525 When am I required to take action
ducting a well test? from my casing diagnostic test?
250.461 What are the requirements for direc- 250.526 What do I submit if my casing diag-
tional and inclination surveys? nostic test requires action?
250.462 What are the requirements for well- 250.527 What must I include in my notifica-
control drills? tion of corrective action?
250.463 Who establishes field drilling rules? 250.528 What must I include in my casing
pressure request?
APPLYING FOR A PERMIT TO MODIFY AND 250.529 What are the terms of my casing
WELL RECORDS pressure request?
250.465 When must I submit an Application 250.530 What if my casing pressure request
for Permit to Modify (APM) or an End of is denied?
Operations Report to BSEE? 250.531 When does my casing pressure re-
250.466–250.469 [Reserved] quest approval become invalid?
ADDITIONAL ARCTIC OCS REQUIREMENTS Subpart F—Oil and Gas Well-Workover

250.470 What additional information must I Operations
submit with my APD for Arctic OCS ex- 250.600 General requirements.
ploratory drilling operations? 250.601 Definitions.
250.471 What are the requirements for Arc- 250.602 [Reserved]
tic OCS source control and containment? 250.603 Emergency shutdown system.
250.472 What are the relief rig requirements 250.604 Hydrogen sulfide.
for the Arctic OCS? 250.605 Subsea workovers.
250.473 What must I do to protect health, 250.606–250.608 [Reserved]
safety, property, and the environment 250.609 Well-workover structures on fixed
while operating on the Arctic OCS? platforms.

250.610 Diesel engine air intakes.
HYDROGEN SULFIDE
250.611 Traveling-block safety device.
250.490 Hydrogen sulfide. 250.612 Field well-workover rules.
46
250.613 Approval and reporting for well- 250.734 What are the requirements for a
workover operations. subsea BOP system?
250.614 Well-control fluids, equipment, and 250.735 What associated systems and related
operations. equipment must all BOP systems in-
250.615 [Reserved] clude?
250.616 Coiled tubing and snubbing oper- 250.736 What are the requirements for choke
ations. manifolds, kelly-type valves inside BOPs,
250.617–250.618 [Reserved] and drill string safety valves?
250.619 Tubing and wellhead equipment. 250.737 What are the BOP system testing re-
250.620 Wireline operations. quirements?
250.738 What must I do in certain situations
Subpart G—Well Operations and involving BOP equipment or systems?
Equipment 250.739 What are the BOP maintenance and
inspection requirements?
GENERAL REQUIREMENTS
RECORDS AND REPORTING
250.700 What operations and equipment does
this subpart cover? 250.740 What records must I keep?
250.701 May I use alternate procedures or 250.741 How long must I keep records?
equipment during operations? 250.742 What well records am I required to
250.702 May I obtain departures from these submit?
requirements? 250.743 What are the well activity reporting
250.703 What must I do to keep wells under requirements?
control? 250.744 What are the end of operation re-
porting requirements?
RIG REQUIREMENTS 250.745 What other well records could I be
250.710 What instructions must be given to required to submit?
personnel engaged in well operations? 250.746 What are the recordkeeping require-
250.711 What are the requirements for well- ments for casing, liner, and BOP tests,
control drills? and inspections of BOP systems and ma-
250.712 What rig unit movements must I re- rine risers?
port?
250.713 What must I provide if I plan to use Subpart H—Oil and Gas Production Safety
a mobile offshore drilling unit (MODU) Systems
for well operations?
GENERAL REQUIREMENTS
250.714 Do I have to develop a dropped ob-
jects plan? Sec.
250.715 Do I need a global positioning sys- 250.800 General.
tem (GPS) for all MODUs? 250.801 Safety and pollution prevention
equipment (SPPE) certification.
WELL OPERATIONS 250.802 Requirements for SPPE.
250.720 When and how must I secure a well? 250.803 What SPPE failure reporting proce-
250.721 What are the requirements for pres- dures must I follow?
sure testing casing and liners? 250.804 Additional requirements for sub-
250.722 What are the requirements for pro- surface safety valves (SSSVs) and related
longed operations in a well? equipment installed in high pressure
250.723 What additional safety measures high temperature (HPHT) environments.
must I take when I conduct operations 250.805 Hydrogen sulfide.
on a platform that has producing wells or 250.806–250.809 [Reserved]
has other hydrocarbon flow?
250.724 What are the real-time monitoring SURFACE AND SUBSURFACE SAFETY SYSTEMS—
requirements? DRY TREES
250.810 Dry tree subsurface safety devices—
BLOWOUT PREVENTER (BOP) SYSTEM general.
REQUIREMENTS 250.811 Specifications for SSSVs—dry trees.
250.730 What are the general requirements 250.812 Surface-controlled SSSVs—dry
for BOP systems and system compo- trees.
nents? 250.813 Subsurface-controlled SSSVs.
250.731 What information must I submit for 250.814 Design, installation, and operation
BOP systems and system components? of SSSVs—dry trees.
250.732 What are the BSEE-approved 250.815 Subsurface safety devices in shut-in
verification organization (BAVO) re- wells—dry trees.
quirements for BOP systems and system 250.816 Subsurface safety devices in injec-
components? tion wells—dry trees.
250.733 What are the requirements for a sur- 250.817 Temporary removal of subsurface
face BOP stack? safety devices for routine operations.
47
250.818 Additional safety equipment—dry 250.857 Glycol dehydration units.
trees. 250.858 Gas compressors.
250.819 Specification for surface safety 250.859 Firefighting systems.
valves (SSVs). 250.860 Chemical firefighting system.
250.820 Use of SSVs. 250.861 Foam firefighting systems.
250.821 Emergency action and safety system 250.862 Fire and gas-detection systems.
shutdown—dry trees. 250.863 Electrical equipment.
250.822–250.824 [Reserved] 250.864 Erosion.
SUBSEA AND SUBSURFACE SAFETY SYSTEMS— 250.865 Surface pumps.
SUBSEA TREES 250.866 Personnel safety equipment.
250.867 Temporary quarters and temporary
250.825 Subsea tree subsurface safety de- equipment.
vices—general. 250.868 Non-metallic piping.
250.826 Specifications for SSSVs—subsea 250.869 General platform operations.
trees. 250.870 Time delays on pressure safety low
250.827 Surface-controlled SSSVs—subsea (PSL) sensors.
trees. 250.871 Welding and burning practices and
250.828 Design, installation, and operation procedures.
of SSSVs—subsea trees. 250.872 Atmospheric vessels.
250.829 Subsurface safety devices in shut-in 250.873 Subsea gas lift requirements.
wells—subsea trees. 250.874 Subsea water injection systems.
250.830 Subsurface safety devices in injec- 250.875 Subsea pump systems.
tion wells—subsea trees. 250.876 Fired and exhaust heated compo-
250.831 Alteration or disconnection of
nents.
subsea pipeline or umbilical.
250.877–250.879 [Reserved]
250.832 Additional safety equipment—subsea
trees. SAFETY DEVICE TESTING
250.833 Specification for underwater safety
valves (USVs). 250.880 Production safety system testing.
250.834 Use of USVs. 250.881–250.889 [Reserved]
250.835 Specification for all boarding shut-
down valves (BSDVs) associated with RECORDS AND TRAINING
subsea systems. 250.890 Records.
250.836 Use of BSDVs. 250.891 Safety device training.
250.837 Emergency action and safety system 250.892–250.899 [Reserved]
shutdown—subsea trees.
250.838 What are the maximum allowable Subpart I—Platforms and Structures
valve closure times and hydraulic bleed-
ing requirements for an electro-hydrau- GENERAL REQUIREMENTS FOR PLATFORMS
lic control system?
250.839 What are the maximum allowable 250.900 What general requirements apply to
valve closure times and hydraulic bleed- all platforms?
ing requirements for a direct-hydraulic 250.901 What industry standards must your
control system? platform meet?
250.902 What are the requirements for plat-
PRODUCTION SAFETY SYSTEMS form removal and location clearance?
250.903 What records must I keep?
250.840 Design, installation, and mainte-
nance—general. PLATFORM APPROVAL PROGRAM
250.841 Platforms.
250.842 Approval of safety systems design 250.904 What is the Platform Approval Pro-
and installation features. gram?
250.843–250.849 [Reserved] 250.905 How do I get approval for the instal-
lation, modification, or repair of my
ADDITIONAL PRODUCTION SYSTEM platform?
REQUIREMENTS 250.906 What must I do to obtain approval
250.850 Production system requirements— for the proposed site of my platform?
general. 250.907 Where must I locate foundation
250.851 Pressure vessels (including heat ex- boreholes?
changers) and fired vessels. 250.908 What are the minimum structural
250.852 Flowlines/Headers. fatigue design requirements?
250.853 Safety sensors.
PLATFORM VERIFICATION PROGRAM
250.854 Floating production units equipped
with turrets and turret-mounted sys- 250.909 What is the Platform Verification
tems. Program?
250.855 Emergency shutdown (ESD) system. 250.910 Which of my facilities are subject to
250.856 Engines. the Platform Verification Program?
48
250.911 If my platform is subject to the Subpart K—Oil and Gas Production
Platform Verification Program, what Requirements
must I do?
250.912 What plans must I submit under the GENERAL
Platform Verification Program?
250.1150 What are the general reservoir pro-
250.913 When must I resubmit Platform duction requirements?
Verification Program plans?
250.914 How do I nominate a CVA? WELL TESTS AND SURVEYS
250.915 What are the CVA’s primary respon-
250.1151 How often must I conduct well pro-
sibilities?
duction tests?
250.916 What are the CVA’s primary duties
250.1152 How do I conduct well tests?
during the design phase?
250.1153 [Reserved]
during the fabrication phase? CLASSIFYING RESERVOIRS
during the installation phase? 250.1154–250.1155 [Reserved]
INSPECTION, MAINTENANCE, AND ASSESSMENT APPROVALS PRIOR TO PRODUCTION

OF PLATFORMS 250.1156 What steps must I take to receive
approval to produce within 500 feet of a
250.919 What in-service inspection require-
unit or lease line?
ments must I meet?
250.1157 How do I receive approval to
250.920 What are the BSEE requirements for
produce gas-cap gas from an oil reservoir
assessment of fixed platforms?
with an associated gas cap?
250.921 How do I analyze my platform for
250.1158 How do I receive approval to
cumulative fatigue?
downhole commingle hydrocarbons?
Subpart J—Pipelines and Pipeline Rights- PRODUCTION RATES
of-Way
250.1159 May the Regional Supervisor limit
250.1000 General requirements. my well or reservoir production rates?
250.1001 Definitions. LARING, VENTING, AND BURNING
250.1002 Design requirements for DOI pipe- HYDROCARBONS
lines.
250.1003 Installation, testing, and repair re- 250.1160 When may I flare or vent gas?
quirements for DOI pipelines. 250.1161 When may I flare or vent gas for ex-
250.1004 Safety equipment requirements for tended periods of time?
DOI pipelines. 250.1162 When may I burn produced liquid
250.1005 Inspection requirements for DOI hydrocarbons?
pipelines. 250.1163 How must I measure gas flaring or
250.1006 How must I decommission and take venting volumes and liquid hydrocarbon
out of service a DOI pipeline? burning volumes, and what records must
I maintain?
250.1007 What to include in applications.
250.1164 What are the requirements for flar-
250.1008 Reports.
ing or venting gas containing H2S?
250.1009 Requirements to obtain pipeline
right-of-way grants. OTHER REQUIREMENTS
250.1010 General requirements for pipeline
right-of-way holders. 250.1165 What must I do for enhanced recov-
ery operations?
250.1011 [Reserved]
250.1166 What additional reporting is re-
250.1012 Required payments for pipeline quired for developments in the Alaska
right-of-way holders. OCS Region?
250.1013 Grounds for forfeiture of pipeline 250.1167 What information must I submit
right-of-way grants. with forms and for approvals?
250.1014 When pipeline right-of-way grants
expire. Subpart L—Oil and Gas Production Meas-
250.1015 Applications for pipeline right-of- urement, Surface Commingling, and
way grants. Security
250.1016 Granting pipeline rights-of-way.
250.1017 Requirements for construction 250.1200 Question index table.
under pipeline right-of-way grants. 250.1201 Definitions.
250.1018 Assignment of pipeline right-of-way 250.1202 Liquid hydrocarbon measurement.

grants. 250.1203 Gas measurement.
250.1019 Relinquishment of pipeline right-of- 250.1204 Surface commingling.
way grants. 250.1205 Site security.
49
Subpart M—Unitization 250.1464 May I request a hearing on the

record regarding the amount of a civil
250.1300 What is the purpose of this subpart? penalty if I did not request a hearing on
250.1301 What are the requirements for unit- the Notice of Noncompliance?
ization?
250.1302 What if I have a competitive res- GENERAL PROVISIONS
ervoir on a lease? 250.1470 How does BSEE decide what the
250.1303 How do I apply for voluntary unit- amount of the penalty should be?
ization? 250.1471 Does the penalty affect whether I
250.1304 How will BSEE require unitization? owe interest?
250.1472 How will the Office of Hearings and
Subpart N—Outer Continental Shelf Civil Appeals conduct the hearing on the
Penalties record?
250.1473 How may I appeal the Administra-
OUTER CONTINENTAL SHELF LANDS ACT CIVIL
tive Law Judge’s decision?
PENALTIES
250.1474 May I seek judicial review of the
250.1400 How does BSEE begin the civil pen- decision of the Interior Board of Land
alty process? Appeals?
250.1401 [Reserved] 250.1475 When must I pay the penalty?
250.1402 Definitions. 250.1476 Can BSEE reduce my penalty once
250.1403 What is the maximum civil pen- it is assessed?
alty? 250.1477 How may BSEE collect the penalty?
250.1404 Which violations will BSEE review
for potential civil penalties? CRIMINAL PENALTIES
250.1405 When is a case file developed? 250.1480 May the United States criminally
250.1406 When will BSEE notify me and pro- prosecute me for violations under Fed-
vide penalty information? eral oil and gas leases?
250.1407 How do I respond to the letter of
notification? Subpart O—Well Control and Production
250.1408 When will I be notified of the Re-
Safety Training
viewing Officer’s decision?
250.1409 What are my appeal rights? 250.1500 Definitions.
250.1501 What is the goal of my training pro-
FEDERAL OIL AND GAS ROYALTY MANAGEMENT
gram?
ACT CIVIL PENALTIES DEFINITIONS
250.1503 What are my general responsibil-
250.1450 What definitions apply to this sub- ities for training?
part? 250.1504 May I use alternative training
methods?
PENALTIES AFTER A PERIOD TO CORRECT 250.1505 Where may I get training for my
250.1451 What may BSEE do if I violate a employees?
statute, regulation, order, or lease term 250.1506 How often must I train my employ-
relating to a Federal oil and gas lease? ees?
250.1452 What if I correct the violation? 250.1507 How will BSEE measure training
250.1453 What if I do not correct the viola- results?
tion? 250.1508 What must I do when BSEE admin-
250.1454 How may I request a hearing on the isters written or oral tests?
record on a Notice of Noncompliance? 250.1509 What must I do when BSEE admin-
250.1455 Does my request for a hearing on isters or requires hands-on, simulator, or
the record affect the penalties? other types of testing?
250.1456 May I request a hearing on the 250.1510 What will BSEE do if my training
record regarding the amount of a civil program does not comply with this sub-
penalty if I did not request a hearing on part?
the Notice of Noncompliance?
Subpart P—Sulphur Operations
PENALTIES WITHOUT A PERIOD TO CORRECT
250.1600 Performance standard.
250.1460 May I be subject to penalties with- 250.1601 Definitions.
out prior notice and an opportunity to 250.1602 Applicability.
correct? 250.1603 Determination of sulphur deposit.
250.1461 How will BSEE inform me of viola- 250.1604 General requirements.
tions without a period to correct? 250.1605 Drilling requirements.
250.1462 How may I request a hearing on the 250.1606 Control of wells.
record on a Notice of Noncompliance re- 250.1607 Field rules.
garding violations without a period to 250.1608 Well casing and cementing.

correct? 250.1609 Pressure testing of casing.
250.1463 Does my request for a hearing on 250.1610 Blowout preventer systems and sys-
the record affect the penalties? tem components.
50
250.1611 Blowout preventer systems tests, 250.1715 How must I permanently plug a
actuations, inspections, and mainte- well?
nance. 250.1716 To what depth must I remove
250.1612 Well-control drills. wellheads and casings?
250.1613 Diverter systems. 250.1717 [Reserved]
250.1614 Mud program.
250.1615 Securing of wells. TEMPORARY ABANDONED WELLS
250.1616 Supervision, surveillance, and 250.1721 If I temporarily abandon a well that
training. I plan to re-enter, what must I do?
250.1617 Application for permit to drill.
250.1722 If I install a subsea protective de-
250.1618 Application for permit to modify.
vice, what requirements must I meet?
250.1619 Well records.
250.1723 What must I do when it is no longer
250.1620 Well-completion and well-workover
necessary to maintain a well in tem-
requirements.
porary abandoned status?
250.1621 Crew instructions.
250.1622 Approvals and reporting of well- REMOVING PLATFORMS AND OTHER FACILITIES
completion and well-workover oper-
ations. 250.1725 When do I have to remove platforms
250.1623 Well-control fluids, equipment, and and other facilities?
operations. 250.1726 When must I submit an initial plat-
250.1624 Blowout prevention equipment. form removal application and what must
250.1625 Blowout preventer system testing, it include?
records, and drills. 250.1727 What information must I include in
250.1626 Tubing and wellhead equipment. my final application to remove a plat-
250.1627 Production requirements. form or other facility?
250.1628 Design, installation, and operation 250.1728 To what depth must I remove a
of production systems. platform or other facility?
250.1629 Additional production and fuel gas 250.1729 After I remove a platform or other
system requirements. facility, what information must I sub-
250.1630 Safety-system testing and records. mit?
250.1631 Safety device training. 250.1730 When might BSEE approve partial
250.1632 Production rates. structure removal or toppling in place?
250.1633 Production measurement. 250.1731 Who is responsible for decommis-
250.1634 Site security. sioning an OCS facility subject to an Al-
ternate Use RUE?
Subpart Q—Decommissioning Activities
SITE CLEARANCE FOR WELLS, PLATFORMS, AND
GENERAL OTHER FACILITIES
250.1700 What do the terms ‘‘decommis- 250.1740 How must I verify that the site of a
sioning’’, ‘‘obstructions’’, and ‘‘facility’’ permanently plugged well, removed plat-
mean? form, or other removed facility is clear
250.1701 Who must meet the decommis- of obstructions?
sioning obligations in this subpart? 250.1741 If I drag a trawl across a site, what
250.1702 When do I accrue decommissioning requirements must I meet?
obligations? 250.1742 What other methods can I use to
250.1703 What are the general requirements verify that a site is clear?
for decommissioning? 250.1743 How do I certify that a site is clear
250.1704 What decommissioning applications of obstructions?
and reports must I submit and when
must I submit them? PIPELINE DECOMMISSIONING
250.1705 [Reserved] 250.1750 When may I decommission a pipe-
250.1706 Coiled tubing and snubbing oper- line in place?
ations. 250.1751 How do I decommission a pipeline
250.1707–250.1709 [Reserved] in place?
250.1752 How do I remove a pipeline?
PERMANENTLY PLUGGING WELLS
250.1753 After I decommission a pipeline,
250.1710 When must I permanently plug all what information must I submit?
wells on a lease? 250.1754 When must I remove a pipeline de-
250.1711 When will BSEE order me to perma- commissioned in place?
nently plug a well?
250.1712 What information must I submit Subpart R [Reserved]
before I permanently plug a well or zone?
250.1713 Must I notify BSEE before I begin Subpart S—Safety and Environmental
well plugging operations? Management Systems (SEMS)
250.1714 What must I accomplish with well
plugs? 250.1900 Must I have a SEMS program?
51
§ 250.101 30 CFR Ch. II (7–1–18 Edition)
250.1901 What is the goal of my SEMS pro- EDITORIAL NOTE: Nomenclature changes to
gram? part 250 appear at 77 FR 50891, Aug. 22, 2012.
250.1902 What must I include in my SEMS
program?
250.1903 Acronyms and definitions.
Subpart A—General
250.1904 Special instructions.
250.1905–250.1908 [Reserved]
AUTHORITY AND DEFINITION OF TERMS
250.1909 What are management’s general re-
sponsibilities for the SEMS program?
§ 250.101 Authority and applicability.
250.1910 What safety and environmental in- The Secretary of the Interior (Sec-
formation is required? retary) authorized the Bureau of Safe-
250.1911 What hazards analysis criteria ty and Environmental Enforcement
must my SEMS program meet? (BSEE) to regulate oil, gas, and sul-
250.1912 What criteria for management of
change must my SEMS program meet?
phur exploration, development, and
250.1913 What criteria for operating proce- production operations on the Outer
dures must my SEMS program meet? Continental Shelf (OCS). Under the
250.1914 What criteria must be documented Secretary’s authority, the Director re-
in my SEMS program for safe work prac- quires that all operations:
tices and contractor selection? (a) Be conducted according to the
250.1915 What training criteria must be in OCS Lands Act (OCSLA), the regula-
my SEMS program? tions in this part, BSEE orders, the
250.1916 What criteria for mechanical integ-
rity must my SEMS program meet?
lease or right-of-way, and other appli-
250.1917 What criteria for pre-startup review cable laws, regulations, and amend-
must be in my SEMS program? ments; and
250.1918 What criteria for emergency re- (b) Conform to sound conservation
sponse and control must be in my SEMS practice to preserve, protect, and de-
program? velop mineral resources of the OCS to:
250.1919 What criteria for investigation of (1) Make resources available to meet
incidents must be in my SEMS program?
the Nation’s energy needs;
250.1920 What are the auditing requirements
for my SEMS program? (2) Balance orderly energy resource
250.1921 What qualifications must the ASP development with protection of the
meet? human, marine, and coastal environ-
250.1922 What qualifications must an AB ments;
meet? (3) Ensure the public receives a fair
250.1923 [Reserved] and equitable return on the resources
250.1924 How will BSEE determine if my of the OCS;
SEMS program is effective?
(4) Preserve and maintain free enter-
250.1925 May BSEE direct me to conduct ad-
ditional audits? prise competition; and
250.1926 [Reserved] (5) Minimize or eliminate conflicts
250.1927 What happens if BSEE finds short- between the exploration, development,
comings in my SEMS program? and production of oil and natural gas
250.1928 What are my recordkeeping and and the recovery of other resources.
documentation requirements?
250.1929 What are my responsibilities for § 250.102 What does this part do?
submitting OCS performance measure
data? (a) This part 250 contains the regula-
250.1930 What must be included in my SEMS tions of the BSEE Offshore program
program for SWA? that govern oil, gas, and sulphur explo-
250.1931 What must be included in my SEMS ration, development, and production
program for UWA? operations on the OCS. When you con-
250.1932 What are my EPP requirements? duct operations on the OCS, you must
250.1933 What procedures must be included submit requests, applications, and no-
for reporting unsafe working conditions?
tices, or provide supplemental informa-
AUTHORITY: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 tion for BSEE approval.
U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334. (b) The following table of general ref-
SOURCE: 76 FR 64462, Oct. 18, 2011, unless erences shows where to look for infor-
otherwise noted. mation about these processes.
For information about . . . Refer to . . .
(1) Applications for permit to drill, ............................................... 30 CFR part 250, subpart D.
(2) Development and Production Plans (DPP), .......................... 30 CFR part 550, subpart B.
52
For information about . . . Refer to . . .
(3) Downhole commingling, ......................................................... 30 CFR part 250, subpart K.

(4) Exploration Plans (EP), .......................................................... 30 CFR part 550, subpart B.
(5) Flaring, ................................................................................... 30 CFR part 250, subpart K.
(6) Gas measurement, ................................................................ 30 CFR part 250, subpart L.
(7) Off-lease geological and geophysical permits, ...................... 30 CFR part 551.
(8) Oil spill financial responsibility coverage, .............................. 30 CFR part 553.
(9) Oil and gas production safety systems, ................................ 30 CFR part 250, subpart H.
(10) Oil spill response plans, ....................................................... 30 CFR part 254.
(11) Oil and gas well-completion operations, .............................. 30 CFR part 250, subpart E.
(12) Oil and gas well-workover operations, ................................ 30 CFR part 250, subpart F.
(13) Decommissioning Activities, ................................................ 30 CFR part 250, subpart Q.
(14) Platforms and structures, ..................................................... 30 CFR part 250, subpart I.
(15) Pipelines and Pipeline Rights-of-Way, ................................ 30 CFR part 250, subpart J and 30 CFR part 550, subpart J.
(16) Sulphur operations, .............................................................. 30 CFR part 250, subpart P.
(17) Training, ............................................................................... 30 CFR part 250, subpart O.
(18) Unitization, ........................................................................... 30 CFR part 250, subpart M.
(19) Safety and Environmental Management Systems (SEMS), 30 CFR part 250, subpart S.
[76 FR 64462, Oct. 18, 2011, as amended at stallation or other device permanently
36148, June 6, 2016] or temporarily attached to the seabed;
(3) Which is receiving, or according
§ 250.103 Where can I find more infor- to the proposed activity, will receive
mation about the requirements in oil for processing, refining, or trans-
this part?
shipment that was extracted from the
BSEE may issue Notices to Lessees OCS and transported directly to such
and Operators (NTLs) that clarify, sup- State by means of vessels or by a com-
plement, or provide more detail about bination of means including vessels;
certain requirements. NTLs may also (4) Which is designated by the Sec-
outline what you must provide as re- retary as a State in which there is a
quired information in your various sub- substantial probability of significant
missions to BSEE. impact on or damage to the coastal,
marine, or human environment, or a
§ 250.104 How may I appeal a decision State in which there will be significant
made under BSEE regulations? changes in the social, governmental, or
To appeal orders or decisions issued economic infrastructure, resulting
under BSEE regulations in 30 CFR from the exploration, development, and
parts 250 to 282, follow the procedures production of oil and gas anywhere on
in 30 CFR part 290. the OCS; or
(5) In which the Secretary finds that
§ 250.105 Definitions. because of such activity there is, or
will be, a significant risk of serious
Terms used in this part will have the damage, due to factors such as pre-
meanings given in the Act and as de- vailing winds and currents to the ma-
fined in this section: rine or coastal environment in the
Act means the OCS Lands Act, as event of any oil spill, blowout, or re-
amended (43 U.S.C. 1331 et seq.). lease of oil or gas from vessels, pipe-
Affected State means with respect to lines, or other transshipment facilities.
any program, plan, lease sale, or other Air pollutant means any airborne
activity proposed, conducted, or ap- agent or combination of agents for
proved under the provisions of the Act, which the Environmental Protection
any State: Agency (EPA) has established, under
(1) The laws of which are declared, section 109 of the Clean Air Act, na-
under section 4(a)(2) of the Act, to be tional primary or secondary ambient
the law of the United States for the air quality standards.
portion of the OCS on which such ac- Analyzed geological information means
tivity is, or is proposed to be, con- data collected under a permit or a lease
ducted; that have been analyzed. Analysis may
(2) Which is, or is proposed to be, di- include, but is not limited to, identi-
rectly connected by transportation fa- fication of lithologic and fossil con-
cilities to any artificial island or intent, core analysis, laboratory analyses
53
§ 250.105 30 CFR Ch. II (7–1–18 Edition)
of physical and chemical properties, safest technologies that the BSEE Di-
well logs or charts, results from forma- rector determines to be economically
tion fluid tests, and descriptions of hy- feasible wherever failure of equipment
drocarbon occurrences or hazardous would have a significant effect on safe-
conditions. ty, health, or the environment.
Ancillary activities mean those activi- Best available control technology
ties on your lease or unit that you: (BACT) means an emission limitation
(1) Conduct to obtain data and infor- based on the maximum degree of reduc-
mation to ensure proper exploration or tion for each air pollutant subject to
development of your lease or unit; and regulation, taking into account energy,
(2) Can conduct without Bureau of environmental and economic impacts,
Ocean Energy Management (BOEM) ap- and other costs. The Regional Super-
proval of an application or permit. visor will verify the BACT on a case-
Archaeological interest means capable by-case basis, and it may include re-
of providing scientific or humanistic ductions achieved through the applica-
understanding of past human behavior, tion of processes, systems, and tech-
cultural adaptation, and related topics niques for the control of each air pol-
through the application of scientific or lutant.
scholarly techniques, such as con- Cap and flow system means an inte-
trolled observation, contextual meas- grated suite of equipment and vessels,
urement, controlled collection, anal- including a capping stack and associ-
ysis, interpretation, and explanation. ated flow lines, that, when installed or
Archaeological resource means any positioned, is used to control the flow
material remains of human life or ac- of fluids escaping from the well by con-
tivities that are at least 50 years of age veying the fluids to the surface to a
and that are of archaeological interest. vessel or facility equipped to process
Arctic OCS means the Beaufort Sea the flow of oil, gas, and water. A cap
and Chukchi Sea Planning Areas (for
and flow system is a high pressure sys-
more information on these areas, see
tem that includes the capping stack
the Proposed Final OCS Oil and Gas
and piping necessary to convey the
Leasing Program for 2012–2017 (June
flowing fluids through the choke mani-
2012) at http://www.boem.gov/Oil-and-
fold to the surface equipment.
Gas-Energy-Program/Leasing/Five-Year-
Program/2012-2017/Program-Area-Maps/ Capping stack means a mechanical de-
index.aspx). vice, including one that is pre-posi-
Arctic OCS conditions means, for the tioned, that can be installed on top of
purposes of this part, the conditions a subsea or surface wellhead or blowout
operators can reasonably expect during preventer to stop the uncontrolled flow
operations on the Arctic OCS. Such of fluids into the environment.
conditions, depending on the time of Coastal environment means the phys-
year, include, but are not limited to: ical, atmospheric, and biological com-
Extreme cold, freezing spray, snow, ex- ponents, conditions, and factors that
tended periods of low light, strong interactively determine the produc-
winds, dense fog, sea ice, strong cur- tivity, state, condition, and quality of
rents, and dangerous sea states. Re- the terrestrial ecosystem from the
mote location, relative lack of infra- shoreline inward to the boundaries of
structure, and the existence of subsist- the coastal zone.
ence hunting and fishing areas are also Coastal zone means the coastal waters
characteristic of the Arctic region. (including the lands therein and there-
Attainment area means, for any air under) and the adjacent shorelands (in-
pollutant, an area that is shown by cluding the waters therein and there-
monitored data or that is calculated by under) strongly influenced by each
air quality modeling (or other methods other and in proximity to the
determined by the Administrator of shorelands of the several coastal
EPA to be reliable) not to exceed any States. The coastal zone includes is-
primary or secondary ambient air qual- lands, transition and intertidal areas,
ity standards established by EPA. salt marshes, wetlands, and beaches.

Best available and safest technology The coastal zone extends seaward to
(BAST) means the best available and the outer limit of the U.S. territorial
54
sea and extends inland from the shore- your lease or unit that you conduct fol-
lines to the extent necessary to control lowing discovery of oil, gas, or sulphur
shorelands, the uses of which have a di- in paying quantities to detect or imply
rect and significant impact on the the presence of oil, gas, or sulphur in
coastal waters, and the inward bound- commercial quantities.
aries of which may be identified by the Director means the Director of BSEE
several coastal States, under the au- of the U.S. Department of the Interior,
thority in section 305(b)(1) of the Coast- or an official authorized to act on the
al Zone Management Act (CZMA) of Director’s behalf.
1972. District Manager means the BSEE of-
Competitive reservoir means a res- ficer with authority and responsibility
ervoir in which there are one or more
for operations or other designated pro-
producible or producing well comple-
gram functions for a district within a
tions on each of two or more leases or
BSEE Region. For activities on the
portions of leases, with different lease
operating interests, from which the les- Alaska OCS, any reference in this part
sees plan future production. to District Manager means the BSEE
Containment dome means a non-pres- Regional Supervisor.
surized container that can be used to Easement means an authorization for
collect fluids escaping from the well or a nonpossessory, nonexclusive interest
equipment below the sea surface or in a portion of the OCS, whether leased
from seeps by suspending the device or unleased, which specifies the rights
over the discharge or seep location. of the holder to use the area embraced
The containment dome includes all of in the easement in a manner consistent
the equipment necessary to capture with the terms and conditions of the
and convey fluids to the surface. granting authority.
Correlative rights when used with re- Eastern Gulf of Mexico means all OCS
spect to lessees of adjacent leases, areas of the Gulf of Mexico the BOEM
means the right of each lessee to be af- Director decides are adjacent to the
forded an equal opportunity to explore State of Florida. The Eastern Gulf of
for, develop, and produce, without Mexico is not the same as the Eastern
waste, minerals from a common source. Planning Area, an area established for
Data means facts and statistics, OCS lease sales.
measurements, or samples that have Emission offsets mean emission reduc-
not been analyzed, processed, or inter- tions obtained from facilities, either
preted. onshore or offshore, other than the fa-
Departures mean approvals granted cility or facilities covered by the pro-
by the appropriate BSEE or BOEM rep- posed Exploration Plan (EP) or Devel-
resentative for operating requirements/ opment and Production Plan (DPP).
procedures other than those specified Enhanced recovery operations mean
in the regulations found in this part. pressure maintenance operations, sec-
These requirements/procedures may be ondary and tertiary recovery, cycling,
necessary to control a well; properly
and similar recovery operations that
develop a lease; conserve natural re-
alter the natural forces in a reservoir
sources, or protect life, property, or
to increase the ultimate recovery of oil
the marine, coastal, or human environ-
or gas.
ment.
Development means those activities Existing facility, as used in 30 CFR
that take place following discovery of 550.303, means an OCS facility de-
minerals in paying quantities, includ- scribed in an Exploration Plan or a De-
ing but not limited to geophysical ac- velopment and Production Plan ap-
tivity, drilling, platform construction, proved before June 2, 1980.
and operation of all directly related on- Exploration means the commercial
shore support facilities, and which are search for oil, gas, or sulphur. Activi-
for the purpose of producing the min- ties classified as exploration include
erals discovered. but are not limited to:
Development geological and geophysical (1) Geophysical and geological (G&G)

(G&G) activities mean those G&G and surveys using magnetic, gravity, seis-
related data-gathering activities on mic reflection, seismic refraction, gas
55
§ 250.105 30 CFR Ch. II (7–1–18 Edition)
sniffers, coring, or other systems to de- production, storage and offloading fa-
tect or imply the presence of oil, gas, cilities (FPSOs); tension-leg platforms
or sulphur; and (TLPs); spars, etc. During production,
(2) Any drilling conducted for the multiple installations or devices are a
purpose of searching for commercial single facility if the installations or
quantities of oil, gas, and sulphur, in- devices are at a single site. Any vessel
cluding the drilling of any additional used to transfer production from an
well needed to delineate any reservoir offshore facility is part of the facility
to enable the lessee to decide whether while it is physically attached to the
to proceed with development and pro- facility.
duction. (3) As used in § 250.490(b), means a
Facility means: vessel, a structure, or an artificial is-
(1) As used in § 250.130, all installa- land used for drilling, well completion,
tions permanently or temporarily at- well-workover, or production oper-
tached to the seabed on the OCS (in- ations.
cluding manmade islands and bottom- (4) As used in §§ 250.900 through
sitting structures). They include mo- 250.921, means all installations or de-
bile offshore drilling units (MODUs) or vices permanently or temporarily at-
other vessels engaged in drilling or tached to the seabed. They are used for
downhole operations, used for oil, gas exploration, development, and produc-
or sulphur drilling, production, or re- tion activities for oil, gas, or sulphur
lated activities. They include all float- and emit or have the potential to emit
ing production systems (FPSs), var- any air pollutant from one or more
iously described as column-stabilized- sources. They include all floating pro-
units (CSUs); floating production, stor- duction systems (FPSs), including col-
age and offloading facilities (FPSOs); umn-stabilized-units (CSUs); floating
tension-leg platforms (TLPs); spars, production, storage and offloading fa-
etc. They also include facilities for cilities (FPSOs); tension-leg platforms
product measurement and royalty de- (TLPs); spars, etc. During production,
termination (e.g., lease Automatic Cus- multiple installations or devices are a
tody Transfer Units, gas meters) of single facility if the installations or
OCS production on installations not on devices are at a single site. Any vessel
the OCS. Any group of OCS installa- used to transfer production from an
tions interconnected with walkways, or offshore facility is part of the facility
any group of installations that in- while it is physically attached to the
cludes a central or primary installa- facility.
tion with processing equipment and (5) As used in subpart S of this part,
one or more satellite or secondary in- all types of structures permanently or
stallations is a single facility. The Re- temporarily attached to the seabed
gional Supervisor may decide that the (e.g., mobile offshore drilling units
complexity of the individual installa- (MODUs); floating production systems;
tions justifies their classification as floating production, storage and off-
separate facilities. loading facilities; tension-leg plat-
(2) As used in 30 CFR 550.303, means forms; and spars) that are used for ex-
all installations or devices perma- ploration, development, and production
nently or temporarily attached to the activities for oil, gas, or sulphur in the
seabed. They include mobile offshore OCS. Facilities also include DOI-regu-
drilling units (MODUs), even while op- lated pipelines.
erating in the ‘‘tender assist’’ mode Flaring means the burning of natural
(i.e., with skid-off drilling units) or gas as it is released into the atmos-
other vessels engaged in drilling or phere.
downhole operations. They are used for Gas reservoir means a reservoir that
exploration, development, and produc- contains hydrocarbons predominantly
tion activities for oil, gas, or sulphur in a gaseous (single-phase) state.
and emit or have the potential to emit Gas-well completion means a well com-
any air pollutant from one or more pleted in a gas reservoir or in the asso-
sources. They include all floating pro- ciated gas-cap of an oil reservoir.
duction systems (FPSs), including col- Geological and geophysical (G&G) ex-
umn-stabilized-units (CSUs); floating plorations mean those G&G surveys on
56
your lease or unit that use seismic re- thorizes exploration for, and develop-
flection, seismic refraction, magnetic, ment and production of, minerals. The
gravity, gas sniffers, coring, or other term also means the area covered by
systems to detect or imply the pres- that authorization, whichever the con-
ence of oil, gas, or sulphur in commer- text requires.
cial quantities. Lease term pipelines mean those pipe-
Governor means the Governor of a lines owned and operated by a lessee or
State, or the person or entity des- operator that are completely contained
ignated by, or under, State law to exer- within the boundaries of a single lease,
cise the powers granted to such Gov- unit, or contiguous (not cornering)
ernor under the Act. leases of that lessee or operator.
H2S absent means: Lessee means a person who has en-
(1) Drilling, logging, coring, testing, tered into a lease with the United
or producing operations have con- States to explore for, develop, and
firmed the absence of H2S in concentra- produce the leased minerals. The term
tions that could potentially result in lessee also includes the BOEM-ap-
atmospheric concentrations of 20 ppm proved assignee of the lease, and the
or more of H2S; or owner or the BOEM-approved assignee
(2) Drilling in the surrounding areas of operating rights for the lease.
and correlation of geological and seis- Major Federal action means any ac-
mic data with equivalent stratigraphic tion or proposal by the Secretary that
units have confirmed an absence of H2S is subject to the provisions of section
throughout the area to be drilled. 102(2)(C) of the National Environmental
H2S present means drilling, logging, Policy Act of 1969, 42 U.S.C. (2)(C) (i.e.,
coring, testing, or producing oper- an action that will have a significant
ations have confirmed the presence of impact on the quality of the human en-
H2S in concentrations and volumes vironment requiring preparation of an
that could potentially result in atmos- environmental impact statement under
pheric concentrations of 20 ppm or section 102(2)(C) of the National Envi-
more of H2S. ronmental Policy Act).
H2S unknown means the designation Marine environment means the phys-
of a zone or geologic formation where ical, atmospheric, and biological com-
neither the presence nor absence of H2S ponents, conditions, and factors that
has been confirmed. interactively determine the produc-
Human environment means the phys- tivity, state, condition, and quality of
ical, social, and economic components, the marine ecosystem. These include
conditions, and factors that inter- the waters of the high seas, the contig-
actively determine the state, condi- uous zone, transitional and intertidal
tion, and quality of living conditions, areas, salt marshes, and wetlands with-
employment, and health of those af- in the coastal zone and on the OCS.
fected, directly or indirectly, by activi- Material remains mean physical evi-
ties occurring on the OCS. dence of human habitation, occupation,
Interpreted geological information use, or activity, including the site, lo-
means geological knowledge, often in cation, or context in which such evi-
the form of schematic cross sections, 3- dence is situated.
dimensional representations, and maps, Maximum efficient rate (MER) means
developed by determining the geologi- the maximum sustainable daily oil or
cal significance of data and analyzed gas withdrawal rate from a reservoir
geological information. that will permit economic development
Interpreted geophysical information and depletion of that reservoir without
means geophysical knowledge, often in detriment to ultimate recovery.
the form of schematic cross sections, 3- Maximum production rate (MPR)
dimensional representations, and maps, means the approved maximum daily
developed by determining the geologi- rate at which oil or gas may be pro-
cal significance of geophysical data duced from a specified oil-well or gas-
and analyzed geophysical information. well completion.
Lease means an agreement that is Minerals include oil, gas, sulphur,

issued under section 8 or maintained geopressured-geothermal and associ-
under section 6 of the Act and that au- ated resources, and all other minerals
57
§ 250.105 30 CFR Ch. II (7–1–18 Edition)
that are authorized by an Act of Con- private, public, or municipal corpora-

gress to be produced. tion.
Natural resources include, without Pipelines are the piping, risers, and
limiting the generality thereof, oil, appurtenances installed for trans-
gas, and all other minerals, and fish, porting oil, gas, sulphur, and produced
shrimp, oysters, clams, crabs, lobsters, waters.
sponges, kelp, and other marine animal Processed geological or geophysical in-
and plant life but does not include formation means data collected under a
water power or the use of water for the permit or a lease that have been proc-
production of power. essed or reprocessed. Processing in-
Nonattainment area means, for any air volves changing the form of data to fa-
pollutant, an area that is shown by cilitate interpretation. Processing op-
monitored data or that is calculated by erations may include, but are not lim-
air quality modeling (or other methods ited to, applying corrections for known
determined by the Administrator of perturbing causes, rearranging or fil-
EPA to be reliable) to exceed any pri- tering data, and combining or trans-
mary or secondary ambient air quality forming data elements. Reprocessing is
standard established by EPA. the additional processing other than
Nonsensitive reservoir means a res- ordinary processing used in the general
ervoir in which ultimate recovery is course of evaluation. Reprocessing op-
not decreased by high reservoir produc- erations may include varying identi-
tion rates. fied parameters for the detailed study
of a specific problem area.
Oil reservoir means a reservoir that
Production means those activities
contains hydrocarbons predominantly
that take place after the successful
in a liquid (single-phase) state.
completion of any means for the re-
Oil reservoir with an associated gas cap moval of minerals, including such re-
means a reservoir that contains hydro- moval, field operations, transfer of
carbons in both a liquid and gaseous minerals to shore, operation moni-
(two-phase) state. toring, maintenance, and workover op-
Oil-well completion means a well com- erations.
pleted in an oil reservoir or in the oil Production areas are those areas
accumulation of an oil reservoir with where flammable petroleum gas, vola-
an associated gas cap. tile liquids or sulphur are produced,
Operating rights mean any interest processed (e.g., compressed), stored,
held in a lease with the right to explore transferred (e.g., pumped), or otherwise
for, develop, and produce leased sub- handled before entering the transpor-
stances. tation process.
Operator means the person the les- Projected emissions mean emissions,
see(s) designates as having control or either controlled or uncontrolled, from
management of operations on the a source or sources.
leased area or a portion thereof. An op- Prospect means a geologic feature
erator may be a lessee, the BSEE-ap- having the potential for mineral depos-
proved or BOEM-approved designated its.
agent of the lessee(s), or the holder of Regional Director means the BSEE of-
operating rights under a BOEM-ap- ficer with responsibility and authority
proved operating rights assignment. for a Region within BSEE.
Outer Continental Shelf (OCS) means Regional Supervisor means the BSEE
all submerged lands lying seaward and officer with responsibility and author-
outside of the area of lands beneath ity for operations or other designated
navigable waters as defined in section 2 program functions within a BSEE Re-
of the Submerged Lands Act (43 U.S.C. gion.
1301) whose subsoil and seabed apper- Right-of-use means any authorization
tain to the United States and are sub- issued under 30 CFR Part 550 to use
ject to its jurisdiction and control. OCS lands.
Person includes a natural person, an Right-of-way pipelines are those pipe-
association (including partnerships, lines that are contained within:

joint ventures, and trusts), a State, a (1) The boundaries of a single lease or
political subdivision of a State, or a unit, but are not owned and operated
58
by a lessee or operator of that lease or includes, but is not limited to, re-
unit; motely operated vehicles, anchors,
(2) The boundaries of contiguous (not buoyancy equipment, connectors, cam-
cornering) leases that do not have a eras, controls and other subsea equip-
common lessee or operator; ment necessary to facilitate the de-
(3) The boundaries of contiguous (not ployment, operation, and retrieval of
cornering) leases that have a common the SCCE. The SCCE does not include a
lessee or operator but are not owned blowout preventer.
and operated by that common lessee or Suspension means a granted or di-
operator; or rected deferral of the requirement to
(4) An unleased block(s). produce (Suspension of Production
Routine operations, for the purposes of (SOP)) or to conduct leaseholding oper-
subpart F, mean any of the following ations (Suspension of Operations
operations conducted on a well with (SOO)).
the tree installed: Venting means the release of gas into
(1) Cutting paraffin; the atmosphere without igniting it.
(2) Removing and setting pump- This includes gas that is released un-
through-type tubing plugs, gas-lift derwater and bubbles to the atmos-
valves, and subsurface safety valves phere.
that can be removed by wireline oper- Waste of oil, gas, or sulphur means:
ations; (1) The physical waste of oil, gas, or
(3) Bailing sand; sulphur;
(4) Pressure surveys; (2) The inefficient, excessive, or im-
(5) Swabbing; proper use, or the unnecessary dissipa-
(6) Scale or corrosion treatment; tion of reservoir energy;
(7) Caliper and gauge surveys;
(3) The locating, spacing, drilling,
(8) Corrosion inhibitor treatment;
equipping, operating, or producing of
(9) Removing or replacing subsurface
any oil, gas, or sulphur well(s) in a
pumps;
manner that causes or tends to cause a
(10) Through-tubing logging
reduction in the quantity of oil, gas, or
(diagnostics);
sulphur ultimately recoverable under
(11) Wireline fishing;
prudent and proper operations or that
(12) Setting and retrieving other sub-
causes or tends to cause unnecessary or
surface flow-control devices; and
excessive surface loss or destruction of
(13) Acid treatments.
oil or gas; or
Sensitive reservoir means a reservoir
in which the production rate will affect (4) The inefficient storage of oil.
ultimate recovery. Welding means all activities con-
Significant archaeological resource nected with welding, including hot tap-
means those archaeological resources ping and burning.
that meet the criteria of significance Wellbay is the area on a facility with-
for eligibility to the National Register in the perimeter of the outermost
of Historic Places as defined in 36 CFR wellheads.
60.4, or its successor. Well-completion operations mean the
Source control and containment equip- work conducted to establish production
ment (SCCE) means the capping stack, from a well after the production-casing
cap and flow system, containment string has been set, cemented, and
dome, and/or other subsea and surface pressure-tested.
devices, equipment, and vessels the col- Well-control fluid means drilling mud,
lective purpose of which is to control a completion fluid, or workover fluid as
spill source and stop the flow of fluids appropriate to the particular operation
into the environment or to contain being conducted.
fluids escaping into the environment. Western Gulf of Mexico means all OCS
‘‘Surface devices’’ refers to equipment areas of the Gulf of Mexico except
mounted or staged on a barge, vessel, those the BOEM Director decides are
or facility to separate, treat, store and/ adjacent to the State of Florida. The
or dispose of fluids conveyed to the sur- Western Gulf of Mexico is not the same
face by the cap and flow system or the as the Western Planning Area, an area
containment dome. ‘‘Subsea devices’’ established for OCS lease sales.
59
§ 250.106 30 CFR Ch. II (7–1–18 Edition)
Workover operations mean the work isting operations, you must use the
conducted on wells after the initial best available and safest technologies
well-completion operation for the pur- (BAST) which the Director determines
pose of maintaining or restoring the to be economically feasible whenever
productivity of a well. the Director determines that failure of
You means a lessee, the owner or equipment would have a significant ef-
holder of operating rights, a designated fect on safety, health, or the environ-
operator or agent of the lessee(s), a ment, except where the Director deter-
pipeline right-of-way holder, or a State mines that the incremental benefits
lessee granted a right-of-use and ease- are clearly insufficient to justify the
ment.
incremental costs of utilizing such
[76 FR 64462, Oct. 18, 2011, as amended at 78 technologies.
FR 20439, Apr. 5, 2013; 81 FR 46560, July 15, (2) Conformance with BSEE regula-
2016]
tions will be presumed to constitute
PERFORMANCE STANDARDS the use of BAST unless and until the
Director determines that other tech-
§ 250.106 What standards will the Di- nologies are required pursuant to para-
rector use to regulate lease oper- graph (c)(1) of this section.
ations? (3) The Director may waive the re-
The Director will regulate all oper- quirement to use BAST on a category
ations under a lease, right-of-use and of existing operations if the Director
easement, or right-of-way to: determines that use of BAST by that
(a) Promote orderly exploration, de- category of existing operations would
velopment, and production of mineral not be practicable. The Director may
resources; waive the requirement to use BAST on
(b) Prevent injury or loss of life; an existing operation at a specific fa-
(c) Prevent damage to or waste of
cility if you submit a waiver request
any natural resource, property, or the
demonstrating that the use of BAST
environment; and
would not be practicable.
(d) Cooperate and consult with af-
fected States, local governments, other (d) BSEE may issue orders to ensure
interested parties, and relevant Fed- compliance with this part, including,
eral agencies. but not limited to, orders to produce
and submit records and to inspect, re-
§ 250.107 What must I do to protect pair, and/or replace equipment. BSEE
health, safety, property, and the en- may also issue orders to shut-in oper-
vironment? ations of a component or facility be-
(a) You must protect health, safety, cause of a threat of serious, irrep-
property, and the environment by: arable, or immediate harm to health,
(1) Performing all operations in a safety, property, or the environment
safe and workmanlike manner; posed by those operations or because
(2) Maintaining all equipment and the operations violate law, including a
work areas in a safe condition; regulation, order, or provision of a
(3) Utilizing recognized engineering lease, plan, or permit.
practices that reduce risks to the low-
est level practicable when conducting [76 FR 64462, Oct. 18, 2011, as amended at 81
design, fabrication, installation, oper- FR 26014, Apr. 29, 2016; 81 FR 61915, Sept. 7,
ation, inspection, repair, and mainte- 2016]
nance activities; and
§ 250.108 What requirements must I
(4) Complying with all lease, plan,
follow for cranes and other mate-
and permit terms and conditions. rial-handling equipment?
(b) You must immediately control,
remove, or otherwise correct any haz- (a) All cranes installed on fixed plat-
ardous oil and gas accumulation or forms must be operated in accordance
other health, safety, or fire hazard. with American Petroleum Institute’s
(c) Best available and safest technology. Recommended Practice for Operation
(1) On all new drilling and production and Maintenance of Offshore Cranes,
operations and, except as provided in API RP 2D (as incorporated by ref-
paragraph (c)(3) of this section, on ex- erence in § 250.198).
60
(b) All cranes installed on fixed plat- (a) Standards or requirements for
forms must be equipped with a func- welders;
tional anti-two block device. (b) How you will ensure that only
(c) If a fixed platform is installed qualified personnel weld;
after March 17, 2003, all cranes on the (c) Practices and procedures for safe
platform must meet the requirements welding that address:
of American Petroleum Institute Spec- (1) Welding in designated safe areas;
ification for Offshore Pedestal Mounted (2) Welding in undesignated areas, in-
Cranes, API Spec 2C (as incorporated cluding wellbay;
by reference in § 250.198). (3) Fire watches;
(d) All cranes manufactured after (4) Maintenance of welding equip-
March 17, 2003, and installed on a fixed ment; and
platform, must meet the requirements (5) Plans showing all designated safe-
of API Spec 2C. welding areas.
(e) You must maintain records spe- (d) How you will prevent spark-pro-
cific to a crane or the operation of a ducing activities (i.e., grinding, abra-
crane installed on an OCS fixed plat- sive blasting/cutting and arc-welding)
form, as follows: in hazardous locations.
(1) Retain all design and construction
records, including installation records § 250.111 Who oversees operations
for any anti-two block safety devices, under my welding plan?
for the life of the crane. The records
A welding supervisor or a designated
must be kept at the OCS fixed plat-
person in charge must be thoroughly
form.
familiar with your welding plan. This
(2) Retain all inspection, testing, and
person must ensure that each welder is
maintenance records of cranes for at
properly qualified according to the
least 4 years. The records must be kept
welding plan. This person also must in-
at the OCS fixed platform.
spect all welding equipment before
(3) Retain the qualification records of
welding.
the crane operator and all rigger per-
sonnel for at least 4 years. The records § 250.112 What standards must my
must be kept at the OCS fixed plat- welding equipment meet?
form.
(f) You must operate and maintain Your welding equipment must meet
all other material-handling equipment the following requirements:
in a manner that ensures safe oper- (a) All engine-driven welding equip-
ations and prevents pollution. ment must be equipped with spark ar-
restors and drip pans;
§ 250.109 What documents must I pre- (b) Welding leads must be completely
pare and maintain related to weld- insulated and in good condition;
ing? (c) Hoses must be leak-free and
(a) You must submit a Welding Plan equipped with proper fittings, gauges,
to the District Manager before you and regulators; and
begin drilling or production activities (d) Oxygen and fuel gas bottles must
on a lease. You may not begin welding be secured in a safe place.
until the District Manager has ap-
proved your plan. § 250.113 What procedures must I fol-
(b) You must keep the following at low when welding?
the site where welding occurs: (a) Before you weld, you must move
(1) A copy of the plan and its ap- any equipment containing hydro-
proval letter; and carbons or other flammable substances
(2) Drawings showing the designated at least 35 feet horizontally from the
safe-welding areas. welding area. You must move similar
equipment on lower decks at least 35
§ 250.110 What must I include in my feet from the point of impact where
welding plan? slag, sparks, or other burning mate-
You must include all of the following rials could fall. If moving this equip-
in the welding plan that you prepare ment is impractical, you must protect
under § 250.109: that equipment with flame-proofed
61
§ 250.114 30 CFR Ch. II (7–1–18 Edition)
covers, shield it with metal or fire-re- or a positive overbalance toward the

sistant guards or curtains, or render formation.
the flammable substances inert.
(b) While you weld, you must mon- § 250.114 How must I install, maintain,
itor all water-discharge-point sources and operate electrical equipment?
from hydrocarbon-handling vessels. If a The requirements in this section
discharge of flammable fluids occurs, apply to all electrical equipment on all
you must stop welding. platforms, artificial islands, fixed
(c) If you cannot weld in one of the structures, and their facilities.
designated safe-welding areas that you (a) You must classify all areas ac-
listed in your safe welding plan, you cording to API RP 500, Recommended
must meet the following requirements: Practice for Classification of Locations
(1) You may not begin welding until: for Electrical Installations at Petro-
(i) The welding supervisor or des- leum Facilities Classified as Class I,
ignated person in charge advises in Division 1 and Division 2 (as incor-
writing that it is safe to weld. porated by reference in § 250.198), or
(ii) You and the designated person in API RP 505, Recommended Practice for
charge inspect the work area and areas Classification of Locations for Elec-
below it for potential fire and explosion trical Installations at Petroleum Fa-
hazards. cilities Classified as Class I, Zone 0,
(2) During welding, the person in Zone 1, and Zone 2 (as incorporated by
charge must designate one or more per- reference in § 250.198).
sons as a fire watch. The fire watch (b) Employees who maintain your
must: electrical systems must have expertise
(i) Have no other duties while actual in area classification and the perform-
welding is in progress; ance, operation and hazards of elec-
(ii) Have usable firefighting equip- trical equipment.
ment; (c) You must install all electrical
(iii) Remain on duty for 30 minutes systems according to API RP 14F, Rec-
after welding activities end; and ommended Practice for Design and In-
(iv) Maintain a continuous surveil- stallation of Electrical Systems for
lance with a portable gas detector dur- Fixed and Floating Offshore Petroleum
ing the welding and burning operation Facilities for Unclassified and Class I,
if welding occurs in an area not Division 1, and Division 2 Locations (as
equipped with a gas detector. incorporated by reference in § 250.198),
(3) You may not weld piping, con- or API RP 14FZ, Recommended Prac-
tainers, tanks, or other vessels that tice for Design and Installation of Elec-
have contained a flammable substance trical Systems for Fixed and Floating
unless you have rendered the contents Offshore Petroleum Facilities for Un-
inert and the designated person in classified and Class I, Zone 0, Zone 1,
charge has determined it is safe to and Zone 2 Locations (as incorporated
weld. This does not apply to approved by reference in § 250.198).
hot taps. (d) On each engine that has an elec-
(4) You may not weld within 10 feet tric ignition system, you must use an
of a wellbay unless you have shut in all ignition system designed and main-
producing wells in that wellbay. tained to reduce the release of elec-
(5) You may not weld within 10 feet trical energy.
of a production area, unless you have
shut in that production area. FR 36149, June 6, 2016]
(6) You may not weld while you drill,
complete, workover, or conduct §§ 250.115–250.117 [Reserved]
wireline operations unless:
(i) The fluids in the well (being GAS STORAGE OR INJECTION
drilled, completed, worked over, or
having wireline operations conducted) § 250.118 Will BSEE approve gas injec-
are noncombustible; and tion?
(ii) You have precluded the entry of The Regional Supervisor may author-
formation hydrocarbons into the ize you to inject gas on the OCS, on
wellbore by either mechanical means and off-lease, to promote conservation
62
of natural resources and to prevent you produce gas from the reservoir you
waste. must use a BSEE-approved formula to
(a) To receive BSEE approval for in- determine the amounts of injected or
jection, you must: stored gas and gas original to the res-
(1) Show that the injection will not ervoir.
result in undue interference with oper-
ations under existing leases; and § 250.122 What effect does subsurface
(2) Submit a written application to storage have on the lease term?
the Regional Supervisor for injection If you use a lease area for subsurface
of gas. storage of gas, it does not affect the
(b) The Regional Supervisor will ap- continuance or expiration of the lease.
prove gas injection applications that:
(1) Enhance recovery; § 250.123 [Reserved]
(2) Prevent flaring of casinghead gas;
§ 250.124 Will BSEE approve gas injec-
or tion into the cap rock containing a
(3) Implement other conservation sulphur deposit?
measures approved by the Regional Su-
pervisor. To receive the Regional Supervisor’s
approval to inject gas into the cap rock
§ 250.119 [Reserved] of a salt dome containing a sulphur de-
posit, you must show that the injec-
§ 250.120 How does injecting, storing, tion:
or treating gas affect my royalty (a) Is necessary to recover oil and gas
payments? contained in the cap rock; and
(a) If you produce gas from an OCS (b) Will not significantly increase po-
lease and inject it into a reservoir on tential hazards to present or future
the lease or unit for the purposes cited sulphur mining operations.
in § 250.118(b), you are not required to
pay royalties until you remove or sell FEES
the gas from the reservoir.
§ 250.125 Service fees.
(b) If you produce gas from an OCS
lease and store it according to 30 CFR (a) The table in this paragraph (a)
550.119, you must pay royalty before in- shows the fees that you must pay to
jecting it into the storage reservoir. BSEE for the services listed. The fees
(c) If you produce gas from an OCS will be adjusted periodically according
lease and treat it at an off-lease or off- to the Implicit Price Deflator for Gross
unit location, you must pay royalties Domestic Product by publication of a
when the gas is first produced. document in the FEDERAL REGISTER. If
a significant adjustment is needed to
§ 250.121 What happens when the res- arrive at the new actual cost for any
ervoir contains both original gas in reason other than inflation, then a pro-
place and injected gas? posed rule containing the new fees will
If the reservoir contains both origi- be published in the FEDERAL REGISTER
nal gas in place and injected gas, when for comment.
Service—processing of the Fee amount 30 CFR citation
following:
(1) Suspension of Operations/ $2,123 ....................................................................................... § 250.171(e).

Suspension of Production
(SOO/SOP) Request.
(2) Deepwater Operations Plan $3,599 ....................................................................................... § 250.292(q).
(DWOP).
(3) Application for Permit to $2,113 for initial applications only; no fee for revisions ........... § 250.410(d); § 250.513(b);
Drill (APD); Form BSEE– § 250.1617(a).
0123.
(4) Application for Permit to $125 .......................................................................................... § 250.465(b); § 250.513(b);
Modify (APM); Form BSEE– § 250.613(b); § 250.1618(a);
0124. § 250.1704(g).
63
§ 250.125 30 CFR Ch. II (7–1–18 Edition)

following:
(5) New Facility Production $5,426 ....................................................................................... § 250.842.

Safety System Application $14,280 additional fee will be charged if BSEE conducts a
for facility with more than pre-production inspection of a facility offshore, and $7,426
125 components. for an inspection of a facility while in a shipyard.
A component is a piece of equipment or ancillary system that
is protected by one or more of the safety devices required
by API RP 14C (as incorporated by reference in § 250.198).
(6) New Facility Production $1,314 ....................................................................................... § 250.842.
Safety System Application $8,967 additional fee will be charged if BSEE conducts a pre-
for facility with 25–125 com- production inspection of a facility offshore, and $5,141 for
ponents. an inspection of a facility while in a shipyard.
(7) New Facility Production $652 .......................................................................................... § 250.842.
Safety System Application
for facility with fewer than 25
components.
(8) Production Safety System $605 .......................................................................................... § 250.842.
Application—Modification
with more than 125 compo-
nents reviewed.
(9) Production Safety System $217 .......................................................................................... § 250.842.
with 25–125 components re-
viewed.
(10) Production Safety System $92 ............................................................................................ § 250.842.
with fewer than 25 compo-
nents reviewed.
(11) Platform Application—In- $22,734 ..................................................................................... § 250.905(l).
stallation—Under the Plat-
form Verification Program.
(12) Platform Application—In- $3,256 ....................................................................................... § 250.905(l).
stallation—Fixed Structure
Under the Platform Approval
Program.
(13) Platform Application—In- $1,657 ....................................................................................... § 250.905(l)
stallation—Caisson/Well Pro-
tector.
(14) Platform Application— $3,884 ....................................................................................... § 250.905(l).
Modification/Repair.
(15) New Pipeline Application $3,541 ....................................................................................... § 250.1000(b).
(Lease Term).
(16) Pipeline Application— $2,056 ....................................................................................... § 250.1000(b).
Modification (Lease Term).
(17) Pipeline Application— $4,169 ....................................................................................... § 250.1000(b).
Modification (ROW).
(18) Pipeline Repair Notifica- $388 .......................................................................................... § 250.1008(e).
tion.
(19) Pipeline Right-of-Way $2,771 ....................................................................................... § 250.1015(a).
(ROW) Grant Application.
(20) Pipeline Conversion of $236 .......................................................................................... § 250.1015(a).
Lease Term to ROW.
(21) Pipeline ROW Assignment $201 .......................................................................................... § 250.1018(b).
(22) 500 Feet From Lease/Unit $3,892 ....................................................................................... § 250.1156(a).
Line Production Request.
(23) Gas Cap Production Re- $4,953 ....................................................................................... § 250.1157.
quest.
(24) Downhole Commingling $5,779 ....................................................................................... § 250.1158(a).
Request.
(25) Complex Surface Com- $4,056 ....................................................................................... § 250.1202(a); § 250.1203(b);
mingling and Measurement § 250.1204(a).
Application.
(26) Simple Surface Commin- $1,371 ....................................................................................... § 250.1202(a); § 250.1203(b);
gling and Measurement Ap- § 250.1204(a).
plication.
(27) Voluntary Unitization Pro- $12,619 ..................................................................................... § 250.1303(d).
posal or Unit Expansion.
(28) Unitization Revision .......... $896 .......................................................................................... § 250.1303(d).
(29) Application to Remove a $4,684 ....................................................................................... § 250.1727.

Platform or Other Facility.
(30) Application to Decommis- $1,142 ....................................................................................... § 250.1751(a) or
sion a Pipeline (Lease Term). § 250.1752(a).
64

following:
(31) Application to Decommis- $2,170 ....................................................................................... § 250.1751(a) or

sion a Pipeline (ROW). § 250.1752(a).
(b) Payment of the fees listed in INSPECTIONS OF OPERATIONS

paragraph (a) of this section must ac-
company the submission of the docu- § 250.130 Why does BSEE conduct in-
ment for approval or be sent to an of- spections?
fice identified by the Regional Direc- BSEE will inspect OCS facilities and
tor. Once a fee is paid, it is nonrefund- any vessels engaged in drilling or other
able, even if an application or other re- downhole operations. These include fa-
quest is withdrawn. If your application cilities under jurisdiction of other Fed-
is returned to you as incomplete, you eral agencies that we inspect by agree-
are not required to submit a new fee ment. We conduct these inspections:
when you submit the amended applica- (a) To verify that you are conducting
tion. operations according to the Act, the
(c) Verbal approvals are occasionally regulations, the lease, right-of-way,
the BOEM-approved Exploration Plan
given in special circumstances. Any ac-
or Development and Production Plans;
tion that will be considered a verbal
or right-of-use and easement, and other
permit approval requires either a paper
applicable laws and regulations; and
permit application to follow the verbal
(b) To determine whether equipment
approval or an electronic application designed to prevent or ameliorate
submittal within 72 hours. Payment blowouts, fires, spillages, or other
must be made with the completed major accidents has been installed and
paper or electronic application. is operating properly according to the
[76 FR 64462, Oct. 18, 2011, as amended at 77 requirements of this part.
FR 50891, Aug. 22, 2012; 78 FR 60213, Oct. 1,
2013; 81 FR 26014, Apr. 29, 2016; 81 FR 61916, § 250.131 Will BSEE notify me before
Sept. 7, 2016] conducting an inspection?
BSEE conducts both scheduled and
§ 250.126 Electronic payment instruc- unscheduled inspections.
tions.
(a) You must file all payments elec- § 250.132 What must I do when BSEE
conducts an inspection?
tronically through the Fees for Serv-
ices page on the BSEE Web site at (a) When BSEE conducts an inspec-
http://www.bsee.gov. This includes, but tion, you must provide:
is not limited to, all OCS applications, (1) Access to all platforms, artificial
permits, or any filing fees. You must islands, and other installations on your
include a copy of the Pay.gov con- leases or associated with your lease,
firmation receipt page with your appli- right-of-use and easement, or right-of-
cation, permit, or filing fee. way; and
(2) Helicopter landing sites and re-
(b) If you submitted an application or
fueling facilities for any helicopters we
permit through eWell, you must use
use to regulate offshore operations.
the interactive payment feature in
(b) You must make the following
that system, which directs you through
available for us to inspect:
Pay.gov to make a payment. It is rec-
(1) The area covered under a lease,
ommended that you keep a copy of right-of-use and easement, right-of-
your payment confirmation receipt in way, or permit;
the event that any questions arise re- (2) All improvements, structures, and
garding your transaction. fixtures on these areas; and
(3) All records of design, construc-
[81 FR 36149, June 6, 2016]

tion, operation, maintenance, repairs,
or investigations on or related to the
area.
65
§ 250.133 30 CFR Ch. II (7–1–18 Edition)
§ 250.133 Will BSEE reimburse me for § 250.136 How will BSEE determine if
my expenses related to inspections? my operating performance is unac-
Upon request, BSEE will reimburse ceptable?
you for food, quarters, and transpor- In determining if your operating per-
tation that you provide for BSEE rep- formance is unacceptable, BSEE will
resentatives while they inspect lease consider, individually or collectively:
facilities and operations. You must (a) Accidents and their nature;
send us your reimbursement request (b) Pollution events, environmental
within 90 days of the inspection.
damages and their nature;
DISQUALIFICATION (c) Incidents of noncompliance;
(d) Civil penalties;
§ 250.135 What will BSEE do if my op- (e) Failure to adhere to OCS lease ob-
erating performance is unaccept- ligations; or
able?
(f) Any other relevant factors.
BSEE will determine if your oper-
ating performance is unacceptable. SPECIAL TYPES OF APPROVALS
BSEE will refer a determination of un-
acceptable performance to BOEM, who § 250.140 When will I receive an oral
may disapprove or revoke your des- approval?
ignation as operator on a single facil-
When you apply for BSEE approval of
ity or multiple facilities. We will give
any activity, we normally give you a
you adequate notice and opportunity
for a review by BSEE officials before written decision. The following table
making a determination that your op- shows circumstances under which we
erating performance is unacceptable. may give an oral approval.
When you . . . We may . . . And . . .
(a) Request approval orally Give you an oral approval, You must then confirm the oral request by sending us a writ-
ten request within 72 hours.
(b) Request approval in writing, Give you an oral approval if We will send you a written approval afterward. It will include
quick action is needed, any conditions that we place on the oral approval.
(c) Request approval orally for Give you an oral approval, You don’t have to follow up with a written request unless the
gas flaring, Regional Supervisor requires it. When you stop the ap-
proved flaring, you must promptly send a letter summa-
rizing the location, dates and hours, and volumes of liquid
hydrocarbons produced and gas flared by the approved
flaring (see 30 CFR 250, subpart K).
§ 250.141 May I ever use alternate pro- and safety features of the proposed pro-
cedures or equipment? cedure or equipment.
You may use alternate procedures or
§ 250.142 How do I receive approval
equipment after receiving approval as for departures?
described in this section.
(a) Any alternate procedures or We may approve departures to the
equipment that you propose to use operating requirements. You may
must provide a level of safety and envi- apply for a departure by writing to the
ronmental protection that equals or District Manager or Regional Super-
surpasses current BSEE requirements. visor.
(b) You must receive the District
Manager’s or Regional Supervisor’s §§ 250.143–250.144 [Reserved]
written approval before you can use al-
§ 250.145 How do I designate an agent
ternate procedures or equipment. or a local agent?
(c) To receive approval, you must ei-
ther submit information or give an oral (a) You or your designated operator
presentation to the appropriate Re- may designate for the Regional Super-
gional Supervisor. Your presentation visor’s approval, or the Regional Direc-

must describe the site-specific applica- tor may require you to designate an
tion(s), performance characteristics,
66
agent empowered to fulfill your obliga- number assigned when it was drilled.
tions under the Act, the lease, or the For example, the first well completed
regulations in this part. for production on Facility A would be
(b) You or your designated operator renamed Well A–1, the second would be
may designate for the Regional Super- Well A–2, and so on; and
visor’s approval a local agent empow- (2) When you have more than one fa-
ered to receive notices and submit re- cility on a block, each facility in-
quests, applications, notices, or supple- stalled, and not bridge-connected to
mental information. another facility, must be named using
§ 250.146 Who is responsible for ful- a different letter in sequential order.
filling leasehold obligations? For example, EC 222A, EC 222B, EC
222C.
(a) When you are not the sole lessee,
(3) When you have more than one fa-
you and your co-lessee(s) are jointly
and severally responsible for fulfilling cility on multiple blocks in a local
your obligations under the provisions area being co-developed, each facility
of 30 CFR parts 250 through 282 and 30 installed and not connected with a
CFR parts 550 through 582 unless other- walkway to another facility should be
wise provided in these regulations. named using a different letter in se-
(b) If your designated operator fails quential order with the block number
to fulfill any of your obligations under corresponding to the block on which
30 CFR parts 250 through 282 and 30 the platform is located. For example,
CFR parts 550 through 582, the Re- EC 221A, EC 222B, and EC 223C.
gional Supervisor may require you or (b) In naming multiple well caissons,
any or all of your co-lessees to fulfill you must assign a letter designation.
those obligations or other operational (c) In naming single well caissons,
obligations under the Act, the lease, or you must use certain criteria as fol-
the regulations. lows:
(c) Whenever the regulations in 30 (1) For single well caissons not at-
CFR parts 250 through 282 and 30 CFR tached to a facility with a walkway,
parts 550 through 582 require the lessee use the well designation. For example,
to meet a requirement or perform an Well No. 1;
action, the lessee, operator (if one has
(2) For single well caissons attached
been designated), and the person actu-
to a facility with a walkway, use the
ally performing the activity to which
the requirement applies are jointly and same designation as the facility. For
severally responsible for complying example, rename Well No.10 as A–10;
with the regulation. and
(3) For single well caissons with pro-
NAMING AND IDENTIFYING FACILITIES duction equipment, use a letter des-
AND WELLS (DOES NOT INCLUDE MODUS) ignation for the facility name and a
letter plus number designation for the
§ 250.150 How do I name facilities and well. For example, the Well No. 1 cais-
wells in the Gulf of Mexico Region?
son would be designated as Facility A,
(a) Assign each facility a letter des- and the well would be Well A–1.
ignation except for those types of fa-
cilities identified in paragraph (c)(1) of § 250.151 How do I name facilities in
this section. For example, A, B, CA, or the Pacific Region?
CB. The operator assigns a name to the
(1) After a facility is installed, re- facility.
name each predrilled well that was as-
signed only a number and was sus- § 250.152 How do I name facilities in
pended temporarily at the mudline or the Alaska Region?
at the surface. Use a letter and number
designation. The letter used must be Facilities will be named and identi-
the same as that of the production fa- fied according to the Regional Direc-
cility, and the number used must cor- tor’s directions.

respond to the order in which the well
was completed, not necessarily the
67
§ 250.153 30 CFR Ch. II (7–1–18 Edition)
§ 250.153 Do I have to rename an exist- flowline dedicated to that subsea well

ing facility or well? at a convenient location on the receiv-
You do not have to rename facilities ing platform. For multiple subsea wells
installed and wells drilled before Janu- that flow into a common pipeline or
ary 27, 2000, unless the Regional Direc- pipelines, no sign is required.
tor requires it. §§ 250.160–250.167 [Reserved]
§ 250.154 What identification signs SUSPENSIONS
must I display?
(a) You must identify all facilities, § 250.168 May operations or produc-
artificial islands, and mobile offshore tion be suspended?
drilling units with a sign maintained in (a) You may request approval of a
a legible condition. suspension, or the Regional Supervisor
(1) You must display an identifica- may direct a suspension (Directed Sus-
tion sign that can be viewed from the pension), for all or any part of a lease
waterline on at least one side of the or unit area.
platform. The sign must use at least 3- (b) Depending on the nature of the
inch letters and figures. suspended activity, suspensions are la-
(2) When helicopter landing facilities beled either Suspensions of Operations
are present, you must display an addi- (SOO) or Suspensions of Production
tional identification sign that is visible (SOP).
from the air. The sign must use at
least 12-inch letters and figures and § 250.169 What effect does suspension
must also display the weight capacity have on my lease?
of the helipad unless noted on the top (a) A suspension may extend the
of the helipad. If this sign is visible to term of a lease (see § 250.180(b), (d), and
both helicopter and boat traffic, then (e)). The extension is equal to the
the sign in paragraph (a)(1) of this sec- length of time the suspension is in ef-
tion is not required. fect, except as provided in paragraph
(3) Your identification sign must: (b) of this section.
(i) List the name of the lessee or des- (b) A Directed Suspension does not
ignated operator; extend the term of a lease when the Re-
(ii) In the GOM OCS Region, list the gional Supervisor directs a suspension
area designation or abbreviation and because of:
the block number of the facility loca- (1) Gross negligence; or
tion as depicted on OCS Official Pro- (2) A willful violation of a provision
traction Diagrams or leasing maps; of the lease or governing statutes and
(iii) In the Pacific OCS Region, list regulations.
the lease number on which the facility
is located; and § 250.170 How long does a suspension
(iv) List the name of the platform, last?
structure, artificial island, or mobile (a) BSEE may issue suspensions for
offshore drilling unit. up to 5 years per suspension. The Re-
(b) You must identify singly com- gional Supervisor will set the length of
pleted wells and multiple completions the suspension based on the conditions
as follows: of the individual case involved. BSEE
(1) For each singly completed well, may grant consecutive suspension peri-
list the lease number and well number ods.
on the wellhead or on a sign affixed to (b) An SOO ends automatically when
the wellhead; the suspended operation commences.
(2) For wells with multiple comple- (c) An SOP ends automatically when
tions, downhole splitter wells, and mul- production begins.
tilateral wells, identify each comple- (d) A Directed Suspension normally
tion in addition to the well name and ends as specified in the letter directing
lease number individually on the well the suspension.
flowline at the wellhead; and (e) BSEE may terminate any suspen-
(3) For subsea wells that flow individ- sion when the Regional Supervisor de-
ually into separate pipelines, affix the termines the circumstances that justi-
required sign on the pipeline or surface fied the suspension no longer exist or
68
that other lease conditions warrant (e) When necessary to allow for inor-
termination. The Regional Supervisor dinate delays encountered in obtaining
will notify you of the reasons for ter- required permits or consents, including
mination and the effective date. administrative or judicial challenges
or appeals.
§ 250.171 How do I request a suspen-
sion? § 250.173 When may the Regional Su-
You must submit your request for a pervisor direct an SOO or SOP?
suspension to the Regional Supervisor, The Regional Supervisor may direct
and BSEE must receive the request be- a suspension when:
fore the end of the lease term (i.e., end (a) You failed to comply with an ap-
of primary term, end of the 1-year pe- plicable law, regulation, order, or pro-
riod following the last leaseholding op- vision of a lease or permit; or
eration, and end of a current suspen- (b) The suspension is in the interest
sion). Your request must include: of National security or defense.
(a) The justification for the suspen-
sion including the length of suspension § 250.174 When may the Regional Su-
requested; pervisor grant or direct an SOP?
(b) A reasonable schedule of work
The Regional Supervisor may grant
leading to the commencement or res-
or direct an SOP when the suspension
toration of the suspended activity;
is in the National interest, and it is
(c) A statement that a well has been
necessary because the suspension will
drilled on the lease and determined to
meet one of the following criteria:
be producible according to § 250.1603
(SOP only), 30 CFR 550.115, or 30 CFR (a) It will allow you to properly de-
550.116; velop a lease, including time to con-
(d) A commitment to production struct and install production facilities;
(SOP only); and (b) It will allow you time to obtain
(e) The service fee listed in § 250.125 of adequate transportation facilities;
this subpart. (c) It will allow you time to enter a
sales contract for oil, gas, or sulphur.
[76 FR 64462, Oct. 18, 2011, as amended at 82 You must show that you are making an
FR 26744, June 9, 2017]
effort to enter into the contract(s); or
§ 250.172 When may the Regional Su- (d) It will avoid continued operations
pervisor grant or direct an SOO or that would result in premature aban-
SOP? donment of a producing well(s).
The Regional Supervisor may grant
§ 250.175 When may the Regional Su-
or direct an SOO or SOP under any of pervisor grant an SOO?
the following circumstances:
(a) When necessary to comply with (a) The Regional Supervisor may
judicial decrees prohibiting any activi- grant an SOO when necessary to allow
ties or the permitting of those activi- you time to begin drilling or other op-
ties. The effective date of the suspen- erations when you are prevented by
sion will be the effective date required reasons beyond your control, such as
by the action of the court; unexpected weather, unavoidable acci-
(b) When activities pose a threat of dents, or drilling rig delays.
serious, irreparable, or immediate (b) The Regional Supervisor may
harm or damage. This would include a grant an SOO when all of the following
threat to life (including fish and other conditions are met:
aquatic life), property, any mineral de- (1) The lease was issued with a pri-
posit, or the marine, coastal, or human mary lease term of 5 years, or with a
environment. BSEE may require you to primary term of 8 years with a require-
do a site-specific study (see § 250.177(a)). ment to drill within 5 years;
(c) When necessary for the installa- (2) Before the end of the third year of
tion of safety or environmental protec- the primary term, you or your prede-
tion equipment; cessor in interest must have acquired
(d) When necessary to carry out the and interpreted geophysical informa-
requirements of NEPA or to conduct an tion that indicates:
environmental analysis; or (i) The presence of a salt sheet;
69
§ 250.176 30 CFR Ch. II (7–1–18 Edition)
(ii) That all or a portion of a poten- structure or stratigraphic trap lying

tial hydrocarbon-bearing formation below 25,000 feet TVD SS.
may lie beneath or adjacent to the salt (4) You demonstrate that additional
sheet; and time is necessary to:
(iii) The salt sheet interferes with (i) Complete current processing or in-
identification of the potential hydro- terpretation of existing geophysical
carbon-bearing formation. data or information;
(3) The interpreted geophysical infor- (ii) Acquire, process, or interpret new
mation required under paragraph (b)(2) geophysical or geological data or infor-
of this section must include full 3–D mation that would affect the decision
depth migration beneath the salt sheet to drill the same geologic structure or
and over the entire lease area. stratigraphic trap, as determined by
(4) Before requesting the suspension, the Regional Supervisor, identified in
you have conducted or are conducting paragraphs (c)(2) and (c)(3) of this sec-
additional data processing or interpre- tion; or
tation of the geophysical information (iii) Drill a well below 25,000 feet TVD
with the objective of identifying a po- SS into the geologic structure or strat-
tential hydrocarbon-bearing formation. igraphic trap identified as a result of
(5) You demonstrate that additional the activities conducted in paragraphs
time is necessary to: (c)(2), (c)(3), and (c)(4)(i) and (ii) of this
(i) Complete current processing or in- section.
terpretation of existing geophysical
data or information; § 250.176 Does a suspension affect my
(ii) Acquire, process, or interpret new royalty payment?
geophysical data or information; or A directed suspension may affect the
(iii) Drill into the potential hydro- payment of rental or royalties for the
carbon-bearing formation identified as lease as provided in 30 CFR 1218.154.
a result of the activities conducted in
paragraphs (b)(2), (b)(4), and (b)(5) of § 250.177 What additional require-
this section. ments may the Regional Supervisor
(c) The Regional Supervisor may order for a suspension?
grant an SOO to conduct additional ge-
If BSEE grants or directs a suspen-
ological and geophysical data analysis
sion under paragraph § 250.172(b), the
that may lead to the drilling of a well
Regional Supervisor may require you
below 25,000 feet true vertical depth
to:
below the datum at mean sea level
(a) Conduct a site-specific study.
(TVD SS) when all of the following
conditions are met: (1) The Regional Supervisor must ap-
(1) The lease was issued with a pri- prove or prescribe the scope for any
mary lease term of: site-specific study that you perform.
(i) Five years; or (2) The study must evaluate the
(ii) Eight years with a requirement cause of the hazard, the potential dam-
to drill within 5 years. age, and the available mitigation
(2) Before the end of the fifth year of measures.
the primary term, you or your prede- (3) You must pay for the study unless
cessor in interest must have acquired you request, and the Regional Super-
and interpreted geophysical informa- visor agrees to arrange, payment by
tion that: another party.
(i) Indicates that all or a portion of a (4) You must furnish copies and re-
potential hydrocarbon-bearing forma- sults of the study to the Regional Su-
tion lies below 25,000 feet TVD SS; and pervisor.
(ii) Includes full 3–D depth migration (5) BSEE will make the results avail-
over the entire lease area. able to other interested parties and to
(3) Before requesting the suspension, the public.
you have conducted or are conducting (6) The Regional Supervisor will use
additional data processing or interpre- the results of the study and any other
tation of the geophysical information information that becomes available:

with the objective of identifying a po- (i) To decide if the suspension can be
tential hydrocarbon-bearing geologic lifted; and
70
(ii) To determine any actions that unless you resume operations or re-
you must take to mitigate or avoid any ceive an SOO or an SOP from the Re-
damage to the environment, life, or gional Supervisor under § 250.172,
property. § 250.173, § 250.174, or § 250.175 before the
(b) Submit a revised Exploration end of the year after you stop oper-
Plan (including any required miti- ations.
gating measures); (e) You may ask the Regional Super-
(c) Submit a revised Development visor to allow you more than a year to
and Production Plan (including any re- resume operations on a lease continued
quired mitigating measures); or beyond its primary term when oper-
(d) Submit a revised Development ating conditions warrant. The request
Operations Coordination Document ac- must be in writing and explain the op-
cording to 30 CFR part 550, subpart B. erating conditions that warrant a
longer period. In allowing additional
PRIMARY LEASE REQUIREMENTS, LEASE time, the Regional Supervisor must de-
TERM EXTENSIONS, AND LEASE CAN- termine that the longer period is in the
CELLATIONS National interest, and it conserves re-
sources, prevents waste, or protects
§ 250.180 What am I required to do to correlative rights.
keep my lease term in effect?
(f) When you begin conducting oper-
(a) If your lease is in its primary ations on a lease that has continued
term: beyond its primary term, you must im-
(1) You must submit a report to the mediately notify the District Manager
District Manager according to para- either orally or by fax or e-mail and
graphs (h) and (i) of this section when- follow up with a written report accord-
ever production begins initially, when- ing to paragraph (g) of this section.
ever production ceases during the last (g) If your lease is continued beyond
year of the primary term, and when- its primary term, you must submit a
ever production resumes during the report to the District Manager under
last year of the primary term. paragraphs (h) and (i) of this section
(2) Your lease expires at the end of whenever production begins initially,
its primary term unless you are con- whenever production ceases, whenever
ducting operations on your lease (see 30 production resumes before the end of
CFR part 556). For purposes of this sec- the 1-year period after having ceased,
tion, the term operations means, drill- or whenever drilling or well-reworking
ing, well-reworking, or production in operations begin before the end of the
paying quantities. The objective of the 1-year period.
drilling or well-reworking must be to (h) The reports required by para-
establish production in paying quan- graphs (a) and (g) of this section must
tities on the lease. contain:
(b) If you stop conducting operations
(1) Name of lessee or operator;
during the last year of your primary
lease term, your lease will expire un- (2) The well number, lease number,
less you either resume operations or area, and block;
receive an SOO or an SOP from the Re- (3) As appropriate, the unit agree-
gional Supervisor under § 250.172, ment name and number; and
§ 250.173, § 250.174, or § 250.175 before the (4) A description of the operation and
end of the year after you stop oper- pertinent dates.
ations. (i) You must submit the reports re-
(c) If you extend your lease term quired by paragraphs (a) and (g) of this
under paragraph (b) of this section, you section within the following time-
must pay rental or minimum royalty, frames:
as appropriate, for each year or part of (1) Initialization of production—with-
the year during which your lease con- in 5 days of initial production.
tinues in force beyond the end of the (2) Cessation of production—within 15
primary lease term. days after the first full month of zero
(d) If you stop conducting operations production.

on a lease that has continued beyond (3) Resumption of production—within
its primary term, your lease will expire 5 days of resuming production after
71
§§ 250.181–250.185 30 CFR Ch. II (7–1–18 Edition)
ceasing production under paragraph quirements for these incidents are con-
(i)(2) of this section. tained in §§ 250.189 and 250.190.
(4) Drilling or well reworking oper- (b) These reporting requirements
ations—within 5 days of beginning and apply to incidents that occur on the
completing the leaseholding oper- area covered by your lease, right-of-use
ations. and easement, pipeline right-of-way, or
(j) For leases continued beyond the other permit issued by BOEM or BSEE,
primary term, you must immediately and that are related to operations re-
report to the District Manager if oper- sulting from the exercise of your rights
ations do not begin before the end of under your lease, right-of-use and ease-
the 1-year period. ment, pipeline right-of-way, or permit.
(c) Nothing in this subpart relieves
FR 26744, June 9, 2017]
you from making notifications and re-
ports of incidents that may be required
§§ 250.181–250.185 [Reserved] by other regulatory agencies.
(d) You must report all spills of oil or
INFORMATION AND REPORTING other liquid pollutants in accordance
REQUIREMENTS with 30 CFR 254.46.
§ 250.186 What reporting information § 250.188 What incidents must I report

and report forms must I submit? to BSEE and when must I report
them?
(a) You must submit information and
reports as BSEE requires. (a) You must report the following in-
(1) You may obtain copies of forms cidents to the District Manager imme-
from, and submit completed forms to, diately via oral communication, and
the District Manager or Regional Su- provide a written follow-up report
pervisor. (hard copy or electronically trans-
(2) Instead of paper copies of forms mitted) within 15 calendar days after
available from the District Manager or the incident:
Regional Supervisor, you may use your (1) All fatalities.
own computer-generated forms that (2) All injuries that require the evac-
are equal in size to BSEE’s forms. You uation of the injured person(s) from the
must arrange the data on your form facility to shore or to another offshore
identical to the BSEE form. If you gen- facility.
erate your own form and it omits (3) All losses of well control. ‘‘Loss of
terms and conditions contained on the well control’’ means:
official BSEE form, we will consider it (i) Uncontrolled flow of formation or
to contain the omitted terms and con- other fluids. The flow may be to an ex-
ditions. posed formation (an underground blow-
(3) You may submit digital data when out) or at the surface (a surface blow-
the Region/District is equipped to ac- out);
cept it. (ii) Flow through a diverter; or
(b) When BSEE specifies, you must (iii) Uncontrolled flow resulting from
include, for public information, an ad- a failure of surface equipment or proce-
ditional copy of such reports. dures.
(1) You must mark it Public Informa- (4) All fires and explosions.
tion (5) All reportable releases of hydro-
(2) You must include all required in- gen sulfide (H2S) gas, as defined in
formation, except information exempt § 250.490(l).
from public disclosure under § 250.197 or (6) All collisions that result in prop-
otherwise exempt from public disclo- erty or equipment damage greater than
sure under law or regulation. $25,000. ‘‘Collision’’ means the act of a
moving vessel (including an aircraft)
§ 250.187 What are BSEE’s incident re- striking another vessel, or striking a
porting requirements? stationary vessel or object (e.g., a boat
(a) You must report all incidents list- striking a drilling rig or platform).
ed in § 250.188(a) and (b) to the District ‘‘Property or equipment damage’’
Manager. The specific reporting re- means the cost of labor and material to
72
restore all affected items to their con- report of such activities that conforms
dition before the damage, including, to the content requirements in § 250.190.
but not limited to, the OCS facility, a [76 FR 64462, Oct. 18, 2011, as amended at 81
vessel, helicopter, or equipment. It FR 46560, July 15, 2016]
does not include the cost of salvage,
cleaning, gas-freeing, dry docking, or § 250.189 Reporting requirements for
demurrage. incidents requiring immediate noti-
(7) All incidents involving structural fication.
damage to an OCS facility. ‘‘Structural For an incident requiring immediate
damage’’ means damage severe enough notification under § 250.188(a), you must
so that operations on the facility can- notify the District Manager via oral
not continue until repairs are made. communication immediately after aid-
(8) All incidents involving crane or ing the injured and stabilizing the situ-
personnel/material handling operation. Your oral communication must
ations. provide the following information:
(9) All incidents that damage or dis- (a) Date and time of occurrence;
able safety systems or equipment (in- (b) Operator, and operator represent-
cluding firefighting systems). ative’s, name and telephone number;
(b) You must provide a written report (c) Contractor, and contractor rep-
of the following incidents to the Dis- resentative’s name and telephone num-
trict Manager within 15 calendar days ber (if a contractor is involved in the
after the incident: incident or injury/fatality);
(1) Any injuries that result in one or (d) Lease number, OCS area, and
more days away from work or one or block;
more days on restricted work or job (e) Platform/facility name and num-
transfer. One or more days means the ber, or pipeline segment number;
injured person was not able to return (f) Type of incident or injury/fatality;
to work or to all of their normal duties (g) Operation or activity at time of
the day after the injury occurred; incident (i.e., drilling, production,
(2) All gas releases that initiate workover, completion, pipeline, crane,
equipment or process shutdown; etc.); and
(3) All incidents that require oper- (h) Description of the incident, dam-
ations personnel on the facility to mus- age, or injury/fatality.
ter for evacuation for reasons not re- § 250.190 Reporting requirements for
lated to weather or drills; incidents requiring written notifi-
(4) All other incidents, not listed in cation.
paragraph (a) of this section, resulting (a) For any incident covered under
in property or equipment damage § 250.188, you must submit a written re-
greater than $25,000. port within 15 calendar days after the
(c) On the Arctic OCS, in addition to incident to the District Manager. The
the requirements of paragraphs (a) and report must contain the following in-
(b) of this section, you must provide to formation:
the BSEE inspector on location, if one (1) Date and time of occurrence;
is present, or to the Regional Super- (2) Operator, and operator represent-
visor, both of the following: ative’s name and telephone number;
(1) An immediate oral report if any of (3) Contractor, and contractor rep-
the following occur: resentative’s name and telephone num-
(i) Any sea ice movement or condi- ber (if a contractor is involved in the
tion that has the potential to affect incident or injury);
your operation or trigger ice manage- (4) Lease number, OCS area, and
ment activities; block;
(ii) The start and termination of ice (5) Platform/facility name and num-
management activities; or ber, or pipeline segment number;
(iii) Any ‘‘kicks’’ or operational (6) Type of incident or injury;
issues that are unexpected and could (7) Operation or activity at time of
result in the loss of well control. incident (i.e., drilling, production,

(2) Within 24 hours after completing workover, completion, pipeline, crane
ice management activities, a written etc.);
73
§ 250.191 30 CFR Ch. II (7–1–18 Edition)
(8) Description of incident, damage, § 250.192 What reports and statistics

or injury (including days away from must I submit relating to a hurri-
work, restricted work or job transfer), cane, earthquake, or other natural
and any corrective action taken; and occurrence?
(9) Property or equipment damage es- (a) You must submit evacuation sta-
timate (in U.S. dollars). tistics to the Regional Supervisor for a
(b) You may submit a report or form natural occurrence, such as a hurri-
prepared for another agency in lieu of cane, a tropical storm, or an earth-
the written report required by para- quake. Statistics include facilities and
graph (a) of this section, provided the rigs evacuated and the amount of pro-
report or form contains all required induction shut-in for gas and oil. You
formation. must:
(c) The District Manager may require (1) Submit the statistics by fax or e-
you to submit additional information mail (for activities in the BSEE GOM
about an incident on a case-by-case OCS Region, use Form BSEE–0132) as
basis. soon as possible when evacuation oc-
curs. In lieu of submitting your statis-
§ 250.191 How does BSEE conduct inci-
dent investigations? tics by fax or e-mail, you may submit
them electronically in accordance with
Any investigation that BSEE con- 30 CFR 250.186(a)(3);
ducts under the authority of sections (2) Submit the statistics on a daily
22(d)(1) and (2) of the Act (43 U.S.C. basis by 11 a.m., as conditions allow,
1348(d)(1) and (2)) is a fact-finding pro- during the period of shut-in and evacu-
ceeding with no adverse parties. The ation;
purpose of the investigation is to pre-
(3) Inform BSEE when you resume
pare a public report that determines
production; and
the cause or causes of the incident. The
investigation may involve panel meet- (4) Submit the statistics either by
ings conducted by a chairperson ap- BSEE district, or the total figures for
pointed by BSEE. The following re- your operations in a BSEE region.
quirements apply to any panel meet- (b) If your facility, production equip-
ings involving persons giving testi- ment, or pipeline is damaged by a nat-
mony: ural occurrence, you must:
(a) A person giving testimony may (1) Submit an initial damage report
have legal or other representative(s) to the Regional Supervisor within 48
present to provide advice or counsel hours after you complete your initial
while the person is giving testimony. evaluation of the damage. You must
The chairperson may require a ver- use Form BSEE–0143, Facility/Equip-
batim transcript to be made of all oral ment Damage Report, to make this and
testimony. The chairperson also may all subsequent reports. In lieu of sub-
accept a sworn written statement in mitting Form BSEE–0143 by fax or e-
lieu of oral testimony. mail, you may submit the damage re-
(b) Only panel members, and any ex- port electronically in accordance with
perts the panel deems necessary, may 30 CFR 250.186(a)(3). In the report, you
address questions to any person giving must:
testimony. (i) Name the items damaged (e.g.,
(c) The chairperson may issue sub- platform or other structure, production
poenas to persons to appear and pro- equipment, pipeline);
vide testimony or documents at a panel (ii) Describe the damage and assess
meeting. A subpoena may not require a the extent of the damage (major, me-
person to attend a panel meeting held dium, minor); and
at a location more than 100 miles from (iii) Estimate the time it will take to
where a subpoena is served. replace or repair each damaged struc-
(d) Any person giving testimony may ture and piece of equipment and return
request compensation for mileage, and it to service. The initial estimate need
fees for services, within 90 days after not be provided on the form until avail-
the panel meeting. The compensated ability of hardware and repair capa-
expenses must be similar to mileage bility has been established (not to ex-
and fees the U.S. District Courts allow. ceed 30 days from your initial report).
74
(2) Submit subsequent reports (A) Phone at 1–877–440–0173 (BSEE

monthly and immediately whenever in- Toll-free Safety Hotline),
formation submitted in previous re- (B) Internet at www.bsee.gov, or
ports changes until the damaged struc- (C) Mail to: U.S. DOI/BSEE, 1849 C
ture or equipment is returned to serv- Street NW., Mail Stop 5438, Wash-
ice. In the final report, you must pro- ington, DC 20240 Attention: IRU Hot-
vide the date the item was returned to line Operations.
service. (ii) Include the following items in the
report:
§ 250.193 Reports and investigations of (A) Name, address, and telephone
possible violations. number should be provided if you do
(a) Any person may report to BSEE not want to remain anonymous;
any hazardous or unsafe working con- (B) The specific concern, provision or
dition on any facility engaged in OCS Federal law, if known, referenced in (a)
activities, and any possible violation or that a person violated or with which a
failure to comply with: person failed to comply; and
(1) Any provision of the Act, (C) Any other facts, data, and appli-
(2) Any provision of a lease, approved cable information.
plan, or permit issued under the Act, (f) When a possible violation is re-
(3) Any provision of any regulation or ported, BSEE will protect a person’s
order issued under the Act, or identity to the extent authorized by
(4) Any other Federal law relating to law.
safety of offshore oil and gas oper- [78 FR 20439, Apr. 5, 2013, as amended at 81
ations. FR 36149, June 6, 2016]
(b) To make a report under this sec-
tion, a person is not required to know § 250.194 How must I protect archae-
whether any legal requirement listed ological resources?
in paragraph (a) of this section has (a)–(b) [Reserved]
been violated. (c) If you discover any archaeological
(c) When BSEE receives a report of a resource while conducting operations
possible violation, or when a BSEE em- in the lease or right-of-way area, you
ployee detects a possible violation, must immediately halt operations
BSEE will investigate according to within the area of the discovery and re-
BSEE procedures and notify any other port the discovery to the BSEE Re-
Federal agency(ies) for further inves- gional Director. If investigations deter-
tigation, as appropriate. mine that the resource is significant,
(d) BSEE investigations of possible the Regional Director will tell you how
violations may include: to protect it.
(1) Conducting interviews of per-
sonnel; § 250.195 What notification does BSEE
(2) Requiring the prompt production require on the production status of
of documents, data, and other evidence; wells?
(3) Requiring the preservation of all You must notify the appropriate
relevant evidence and access for BSEE BSEE District Manager when you suc-
investigators to such evidence; and cessfully complete or recomplete a well
(4) Taking other actions and impos- for production. You must:
ing other requirements as necessary to (a) Notify the District Manager with-
investigate possible violations and as- in 5 working days of placing the well in
sure an orderly investigation. a production status. You must confirm
(e)(1) Reports should contain suffi- oral notification by telefax or e-mail
cient credible information to establish within those 5 working days.
a reasonable basis for BSEE to inves- (b) Provide the following information
tigate whether a violation or other in your notification:
hazardous or unsafe working condition (1) Lessee or operator name;
exists. (2) Well number, lease number, and
(2) To report hazardous or unsafe OCS area and block designations;
working conditions or a possible viola- (3) Date you placed the well on pro-
tion: duction (indicate whether or not this is
(i) Contact BSEE by: first production on the lease);
75
§ 250.196 30 CFR Ch. II (7–1–18 Edition)
(4) Type of production; and gional Director requests and retains

(5) Measured depth of the production the information.
interval. (c) When you request reimbursement,
you must identify reproduction and
§ 250.196 Reimbursements for repro- processing costs separately from acqui-
duction and processing costs. sition costs.
(a) BSEE will reimburse you for costs (d) BSEE will not reimburse you for
of reproducing data and information data acquisition costs or for the costs
that the Regional Director requests if: of analyzing or processing geological
(1) You deliver geophysical and geo- information or interpreting geological
logical (G&G) data and information to or geophysical information.
BSEE for the Regional Director to in- § 250.197 Data and information to be
spect or select and retain; made available to the public or for
(2) BSEE receives your request for re- limited inspection.
imbursement and the Regional Direc- BSEE will protect data and informa-
tor determines that the requested re- tion that you submit under this part,
imbursement is proper; and and 30 CFR part 203, as described in
(3) The cost is at your lowest rate or this section. Paragraphs (a) and (b) of
at the lowest commercial rate estab- this section describe what data and in-
lished in the area, whichever is less. formation will be made available to the
(b) BSEE will reimburse you for the public without the consent of the les-
costs of processing geophysical infor- see, under what circumstances, and in
mation (that does not include cost of what time period. Paragraph (c) of this
data acquisition): section describes what data and infor-
(1) If, at the request of the Regional mation will be made available for lim-
Director, you processed the geo- ited inspection without the consent of
physical data or information in a form the lessee, and under what cir-
or manner other than that used in the cumstances.
normal conduct of business; or (a) All data and information you sub-
(2) If you collected the information mit on BSEE forms will be made avail-
under a permit that BSEE issued to able to the public upon submission, ex-
you before October 1, 1985, and the Re- cept as specified in the following table:
Data and information not immediately Excepted data will be made available
On form . . . available are . . . . . .
(1) BSEE–0123, Application for Permit to Items 15, 16, 22 through 25, When the well goes on production or ac-
Drill, cording to the table in paragraph (b) of
this section, whichever is earlier.
(2) BSEE–0123S, Supplemental APD In- Items 3, 7, 8, 15 and 17, When the well goes on production or ac-
formation Sheet, cording to the table in paragraph (b) of
(3) BSEE–0124, Application for Permit to Item 17, When the well goes on production or ac-
Modify, cording to the table in paragraph (b) of
(4) BSEE–0125, End of Operations Re- Items 12, 13, 17, 21, 22, 26 through 38, When the well goes on production or ac-
port, cording to the table in paragraph (b) of
this section, whichever is earlier. How-
ever, items 33 through 38 will not be
released when the well goes on pro-
duction unless the period of time in
the table in paragraph (b) has expired.
(5) BSEE–0126, Well Potential Test Re- Item 101, 2 years after you submit it.
port,
(6) [Reserved]
(7) BSEE–0133 Well Activity Report, Item 10 Fields [WELLBORE START When the well goes on production or ac-
DATE, TD DATE, OP STATUS, END cording to the table in paragraph (b) of
DATE, MD, TVD, AND MW PPG]. this section, whichever is earlier.
Item 11 Fields [WELLBORE START
DATE, TD DATE, PLUGBACK DATE,
FINAL MD, AND FINAL TVD] and
Items 12 through 15,
(8) BSEE–0133S Open Hole Data Report, Boxes 7 and 8, When the well goes on production or ac-
cording to the table in paragraph (b) of
(9) [Reserved]
76
Data and information not immediately Excepted data will be made available
On form . . . available are . . . . . .
(10) [Reserved]
(b) BSEE will release lease and per- normally submitted on BSEE forms,
mit data and information that you sub- according to the following table:
mit and BSEE retains, but that are not
If . . . BSEE will release . . . At this time . . . Special provisions . . .
(1) The Director determines Geophysical data, Geological At any time, BSEE will release data and
that data and information are data Interpreted G&G infor- information only if release
needed for specific scientific mation, Processed G&G in- would further the National
or research purposes for the formation, Analyzed geo- interest without unduly
Government, logical information, damaging the competitive
position of the lessee.
(2) Data or information is col- Geophysical data, Geological 60 days after BSEE receives BSEE will release the data
lected with high-resolution data, Interpreted G&G infor- the data or information, if and information earlier than
systems (e.g., bathymetry, mation, Processed geologi- the Regional Supervisor 60 days if the Regional Su-
side-scan sonar, subbottom cal information, Analyzed deems it necessary, pervisor determines it is
profiler, and magnetometer) geological information, needed by affected States
to comply with safety or en- to make decisions under 30
vironmental protection re- CFR 550, subpart B. The
quirements, Regional Supervisor will re-
consider earlier release if
you satisfy him/her that it
would unduly damage your
competitive position.
(3) Your lease is no longer in Geophysical data, Geological When your lease terminates, This release time applies only
effect, data, Processed G&G infor- if the provisions in this table
mation Interpreted G&G in- governing high-resolution
formation, Analyzed geo- systems and the provisions
logical information, in 30 CFR 552.7 do not
apply. The release time ap-
plies to the geophysical
data and information only if
acquired postlease for a
lessee’s exclusive use.
(4) Your lease is still in effect, Geophysical data, Processed 10 years after you submit the This release time applies only
geophysical information, In- data and information, if the provisions in this table
terpreted G&G information, governing high-resolution
systems and the provisions
in 30 CFR 552.7 do not
apply. This release time ap-
plies to the geophysical
data and information only if
acquired postlease for a
lessee’s exclusive use.
(5) Your lease is still in effect Geological data, Analyzed ge- 2 years after the required These release times apply
and within the primary term ological information, submittal date or 60 days only if the provisions in this
specified in the lease, after a lease sale if any table governing high-resolu-
portion of an offered lease tion systems and the provi-
is within 50 miles of a well, sions in 30 CFR 552.7 do
whichever is later, not apply. If the primary
term specified in the lease
is extended under the
heading of ‘‘Suspensions’’
in this subpart, the exten-
sion applies to this provi-
sion.
(6) Your lease is in effect and Geological data, Analyzed ge- 2 years after the required None.
beyond the primary term ological information, submittal date,
specified in the lease,
(7) Data or information is sub- Descriptions of downhole lo- When the well goes on pro- Directional survey data may
mitted on well operations, cations, operations, and duction or when geological be released earlier to the
equipment, data is released according owner of an adjacent lease
to §§ 250.197(b)(5) and according to Subpart D of
(b)(6), whichever occurs this part.

earlier,
77
§ 250.198 30 CFR Ch. II (7–1–18 Edition)
If . . . BSEE will release . . . At this time . . . Special provisions . . .
(8) Data and information are Any data or information ob- At any time, None.
obtained from beneath un- tained,
leased land as a result of a
well deviation that has not
been approved by the Dis-
trict Manager or Regional
Supervisor,
(9) Except for high-resolution G&G data, analyzed geologi- Geological data and informa- None.
data and information re- cal information, processed tion: 10 years after BOEM
leased under paragraph and interpreted G&G infor- issues the permit; Geo-
(b)(2) of this section data mation, physical data: 50 years
and information acquired by after BOEM issues the per-
a permit under 30 CFR part mit; Geophysical informa-
551 are submitted by a les- tion: 25 years after BOEM
see under 30 CFR part 203, issues the permit,
30 CFR part 250, or 30 CFR
part 550,
(c) BSEE may allow limited inspec- a document in the FEDERAL REGISTER
tion, but only by persons with a direct and amend this section.
interest in related BSEE decisions and (2) The BSEE may make the rule
issues in specific geographic areas, and amending the document effective with-
who agree in writing to its confiden- out prior opportunity for public com-
tiality, of G&G data and information ment when BSEE determines:
submitted under this part or 30 CFR (i) That the revisions to a document
part 203 that BSEE uses to: result in safety improvements or rep-
(1) Make unitization determinations resent new industry standard tech-
on two or more leases; nology and do not impose undue costs
(2) Make competitive reservoir deter- on the affected parties; and
minations; (ii) The BSEE meets the require-
(3) Ensure proper plans of developments for making a rule immediately
ment for competitive reservoirs; effective under 5 U.S.C. 553.
(4) Promote operational safety; (3) The effect of incorporation by ref-
(5) Protect the environment; erence of a document into the regula-
(6) [Reserved]; or tions in this part is that the incor-
(7) Determine eligibility for royalty porated document is a requirement.
relief. When a section in this part incor-
porates all of a document, you are re-
REFERENCES sponsible for complying with the provi-
sions of that entire document, except
§ 250.198 Documents incorporated by to the extent that the section which in-
reference. corporates the document by reference
(a) The BSEE is incorporating by ref- provides otherwise. When a section in
erence the documents listed in para- this part incorporates part of a docu-
graphs (e) through (k) of this section. ment, you are responsible for com-
Paragraphs (e) through (k) identify the plying with that part of the document
publishing organization of the docu- as provided in that section.
ments, the address and phone number (b) The BSEE incorporated each doc-
where you may obtain these docu- ument or specific portion by reference
ments, and the documents incorporated in the sections noted. The entire docu-
by reference. The Director of the Fed- ment is incorporated by reference, un-
eral Register has approved the less the text of the corresponding sec-
incorporations by reference according tions in this part calls for compliance
to 5 U.S.C. 552(a) and 1 CFR part 51. with specific portions of the listed doc-
(1) Incorporation by reference of a uments. In each instance, the applica-
document is limited to the edition of ble document is the specific edition or
the publication that is cited in this specific edition and supplement or ad-
section. Future amendments or revi- dendum cited in this section.

sions of the document are not included. (c) Under §§ 250.141 and 250.142, you
The BSEE will publish any changes to may comply with a later edition of a
78
specific document incorporated by ref- Appendices, 2004 Edition; and July 1,

erence, provided: 2005 Addenda, and all Section I Inter-
(1) You show that complying with the pretations Volume 55, incorporated by
later edition provides a degree of pro- reference at §§ 250.851(a) and 250.1629(b).
tection, safety, or performance equal (2) ANSI/ASME Boiler and Pressure
to or better than would be achieved by Vessel Code, Section IV, Rules for Con-
compliance with the listed edition; and struction of Heating Boilers; including
(2) You obtain the prior written ap- Appendices 1, 2, 3, 5, 6, and Non-manda-
proval for alternative compliance from tory Appendices B, C, D, E, F, H, I, K,
the authorized BSEE official. L, and M, and the Guide to Manufac-
(d) You may inspect these documents turers Data Report Forms, 2004 Edi-
at the Bureau of Safety and Environ- tion; July 1, 2005 Addenda, and all Sec-
mental Enforcement, 45600 Woodland tion IV Interpretations Volume 55, in-
Rd, Sterling, VA 20166; phone: 1–844– corporated by reference at §§ 250.851(a)
259–4779; or at the National Archives and 250.1629(b).
and Records Administration (NARA). (3) ANSI/ASME Boiler and Pressure
For information on the availability of Vessel Code, Section VIII, Rules for
this material at NARA, call 202–741– Construction of Pressure Vessels; Divi-
6030, or go to: http://www.archives.gov/ sions 1 and 2, 2004 Edition; July 1, 2005
federallregister/codelofl Addenda, Divisions 1, 2, and 3 and all
federallregulations/ibrllocations.html. Section VIII Interpretations Volumes
(e) American Concrete Institute 54 and 55, incorporated by reference at
(ACI), ACI Standards, 38800 Country §§ 250.851(a) and 250.1629(b).
Club Drive, Farmington Hills, MI 48331– (4) ANSI/ASME B 16.5–2003, Pipe
3439: http://www.concrete.org; phone: 248– Flanges and Flanged Fittings incor-
848–3700: porated by reference at § 250.1002;
(1) ACI Standard 318–95, Building (5) ANSI/ASME B 31.8–2003, Gas
Code Requirements for Reinforced Con- Transmission and Distribution Piping
crete (ACI 318–95), incorporated by ref- Systems incorporated by reference at
erence at § 250.901. § 250.1002;
(2) ACI 318R–95, Commentary on (6) ANSI Z88.2–1992, American Na-
Building Code Requirements for Rein- tional Standard for Respiratory Pro-
forced Concrete, incorporated by ref- tection, incorporated by reference at,
erence at § 250.901. § 250.490.
(3) ACI 357R–84, Guide for the Design (h) American Petroleum Institute
and Construction of Fixed Offshore (API), API Recommended Practices
Concrete Structures, 1984; reapproved (RP), Specs, Standards, Manual of Pe-
1997, incorporated by reference at troleum Measurement Standards
§ 250.901. (MPMS) chapters, 1220 L Street, NW.,
(f) American Institute of Steel Con- Washington, DC 20005–4070; http://
struction, Inc. (AISC), AISC Standards, www.api.org; phone: 202–682–8000:
One East Wacker Drive, Suite 700, Chi- (1) API 510, Pressure Vessel Inspec-
cago, IL 60601–1802; http://www.aisc.org; tion Code: In-Service Inspection, Rat-
phone: 312–670–2400: ing, Repair, and Alteration, Down-
(1) ANSI/AISC 360–05, Specification stream Segment, Ninth Edition, June
for Structural Steel Buildings incor- 2006; incorporated by reference at
porated by reference at § 250.901. §§ 250.851(a) and 250.1629(b);
(2) [Reserved] (2) API Bulletin 2INT–DG, Interim
(g) American National Standards In- Guidance for Design of Offshore Struc-
stitute (ANSI), ANSI/ASME Codes, tures for Hurricane Conditions, May
http://www.webstore.ansi.org; phone: 212– 2007; incorporated by reference at
642–4900; and/or American Society of § 250.901;
Mechanical Engineers (ASME), 22 Law (3) API Bulletin 2INT–EX, Interim
Drive, P.O. Box 2900, Fairfield, NJ Guidance for Assessment of Existing
07007–2900; http://www.asme.org; phone: Offshore Structures for Hurricane Con-
1–800–843–2763: ditions, May 2007; incorporated by ref-
(1) ANSI/ASME Boiler and Pressure erence at § 250.901;

Vessel Code, Section I, Rules for Con- (4) API Bulletin 2INT–MET, Interim
struction of Power Boilers; including Guidance on Hurricane Conditions in
79
§ 250.198 30 CFR Ch. II (7–1–18 Edition)
the Gulf of Mexico, May 2007; incor- ber 1998; reaffirmed 2003; incorporated
porated by reference at § 250.901; by reference at § 250.1202;
(5) API MPMS, Chapter 1—Vocabu- (16) API MPMS, Chapter 5—Metering,
lary, Second Edition, July 1994; incor- Section 1—General Considerations for
porated by reference at § 250.1201; Measurement by Meters, Fourth Edi-
(6) API MPMS, Chapter 2—Tank Cali- tion, September 2005; incorporated by
bration, Section 2A—Measurement and reference at § 250.1202;
Calibration of Upright Cylindrical (17) API MPMS, Chapter 5—Metering,
Tanks by the Manual Tank Strapping Section 2—Measurement of Liquid Hy-
Method, First Edition, February 1995; drocarbons by Displacement Meters,
reaffirmed February 2007; incorporated Third Edition, September 2005; incor-
by reference at § 250.1202; porated by reference at § 250.1202;
(7) API MPMS, Chapter 2—Tank Cali- (18) API MPMS Chapter 5—Metering,
bration, Section 2B—Calibration of Up- Section 3—Measurement of Liquid Hy-
right Cylindrical Tanks Using the Opti- drocarbons by Turbine Meters, Fifth
cal Reference Line Method, First Edi- Edition, September 2005; incorporated
tion, March 1989; reaffirmed, December by reference at § 250.1202;
2007; incorporated by reference at (19) API MPMS, Chapter 5—Metering,
§ 250.1202; Section 4—Accessory Equipment for
(8) API MPMS, Chapter 3—Tank Liquid Meters, Fourth Edition, Sep-
Gauging, Section 1A—Standard Prac- tember 2005; incorporated by reference
tice for the Manual Gauging of Petro- at § 250.1202;
leum and Petroleum Products, Second (20) API MPMS, Chapter 5—Metering,
Edition, August 2005; incorporated by Section 5—Fidelity and Security of
reference at § 250.1202; Flow Measurement Pulsed-Data Trans-
(9) API MPMS, Chapter 3—Tank mission Systems, Second Edition, Au-
Gauging, Section 1B—Standard Prac- gust 2005; incorporated by reference at
tice for Level Measurement of Liquid § 250.1202;
Hydrocarbons in Stationary Tanks by (21) API MPMS, Chapter 6—Metering
Automatic Tank Gauging, Second Edi- Assemblies, Section 1—Lease Auto-
tion, June 2001, reaffirmed, October matic Custody Transfer (LACT) Sys-
2006; incorporated by reference at tems, Second Edition, May 1991; re-
§ 250.1202; affirmed, April 2007; incorporated by
(10) API MPMS, Chapter 4—Proving reference at § 250.1202;
Systems, Section 1—Introduction, (22) API MPMS, Chapter 6—Metering
Third Edition, February 2005; incor- Assemblies, Section 6—Pipeline Meter-
porated by reference at § 250.1202; ing Systems, Second Edition, May 1991;
(11) API MPMS, Chapter 4—Proving reaffirmed, February 2007; incorporated
Systems, Section 2—Displacement by reference at § 250.1202;
Provers, Third Edition, September 2003; (23) API MPMS, Chapter 6—Metering
incorporated by reference at § 250.1202; Assemblies, Section 7—Metering Vis-
(12) API MPMS, Chapter 4—Proving cous Hydrocarbons, Second Edition,
Systems, Section 4—Tank Provers, May 1991; reaffirmed, April 2007; incor-
Second Edition, May 1998, reaffirmed porated by reference at § 250.1202;
November 2005; incorporated by ref- (24) API MPMS, Chapter 7—Tempera-
erence at § 250.1202; ture Determination, First Edition,
(13) API MPMS, Chapter 4—Proving June 2001; reaffirmed, March 2007; in-
Systems, Section 5—Master-Meter corporated by reference at § 250.1202;
Provers, Second Edition, May 2000, re- (25) API MPMS, Chapter 8—Sam-
affirmed: August 2005; incorporated by pling, Section 1—Standard Practice for
reference at § 250.1202; Manual Sampling of Petroleum and Pe-
(14) API MPMS, Chapter 4—Proving troleum Products, Third Edition, Octo-
Systems, Section 6—Pulse Interpola- ber 1995; reaffirmed, March 2006; incor-
tion, Second Edition, May 1999; re- porated by reference at § 250.1202;
affirmed 2003; incorporated by ref- (26) API MPMS, Chapter 8—Sam-
erence at § 250.1202; pling, Section 2—Standard Practice for
(15) API MPMS, Chapter 4—Proving Automatic Sampling of Liquid Petro-

Systems, Section 7—Field Standard leum and Petroleum Products, Second
Test Measures, Second Edition, Decem- Edition, October 1995; reaffirmed, June
80
2005; incorporated by reference at 2540, First Edition, August 1980; re-

§ 250.1202; affirmed March 1997; incorporated by
(27) API MPMS, Chapter 9—Density reference at § 250.1202;
Determination, Section 1—Standard (35) API MPMS, Chapter 11.2.2—Com-
Test Method for Density, Relative Den- pressibility Factors for Hydrocarbons:
sity (Specific Gravity), or API Gravity 0.350–0.637 Relative Density (60 °F/60 °F)
of Crude Petroleum and Liquid Petro- and ¥50 °F to 140 °F Metering Tem-
leum Products by Hydrometer Method, perature, Second Edition, October 1986;
Second Edition, December 2002; re- reaffirmed: December 2007; incor-
affirmed October 2005; incorporated by porated by reference at § 250.1202;
reference at § 250.1202(a)(3) and (l)(4); (36) API MPMS, Chapter 11—Physical
(28) API MPMS, Chapter 9—Density Properties Data, Addendum to Section
Determination, Section 2—Standard 2, Part 2—Compressibility Factors for
Test Method for Density or Relative Hydrocarbons, Correlation of Vapor
Density of Light Hydrocarbons by Pressure for Commercial Natural Gas
Pressure Hydrometer, Second Edition, Liquids, First Edition, December 1994;
March 2003; incorporated by reference reaffirmed, December 2002; incor-
at § 250.1202; porated by reference at § 250.1202;
(29) API MPMS, Chapter 10—Sedi- (37) API MPMS, Chapter 12—Calcula-
ment and Water, Section 1—Standard tion of Petroleum Quantities, Section
Test Method for Sediment in Crude
2—Calculation of Petroleum Quantities
Oils and Fuel Oils by the Extraction
Using Dynamic Measurement Methods
Method, Third Edition, November 2007;
and Volumetric Correction Factors,
incorporated by reference at § 250.1202;
Part 1—Introduction, Second Edition,
(30) API MPMS, Chapter 10—Sedi-
May 1995; reaffirmed March 2002; incor-
ment and Water, Section 2—Standard
porated by reference at § 250.1202;
Test Method for Water in Crude Oil by
Distillation, Second Edition, November (38) API MPMS, Chapter 12—Calcula-
2007; incorporated by reference at tion of Petroleum Quantities, Section
§ 250.1202; 2—Calculation of Petroleum Quantities
(31) API MPMS, Chapter 10—Sedi- Using Dynamic Measurement Methods
ment and Water, Section 3—Standard and Volumetric Correction Factors,
Test Method for Water and Sediment in Part 2—Measurement Tickets, Third
Crude Oil by the Centrifuge Method Edition, June 2003; incorporated by ref-
(Laboratory Procedure), Third Edition, erence at § 250.1202;
May 2008; incorporated by reference at (39) API MPMS, Chapter 14—Natural
§ 250.1202; Gas Fluids Measurement, Section 3—
(32) API MPMS, Chapter 10—Sedi- Concentric, Square-Edged Orifice Me-
ment and Water, Section 4—Deter- ters, Part 1—General Equations and
mination of Water and/or Sediment in Uncertainty Guidelines, Third Edition,
Crude Oil by the Centrifuge Method September 1990; reaffirmed January
(Field Procedure), Third Edition, De- 2003; incorporated by reference at
cember 1999; incorporated by reference § 250.1203;
at § 250.1202; (40) API MPMS, Chapter 14—Natural
(33) API MPMS, Chapter 10—Sedi- Gas Fluids Measurement, Section 3—
ment and Water, Section 9—Standard Concentric, Square-Edged Orifice Me-
Test Method for Water in Crude Oils by ters, Part 2—Specification and Instal-
Coulometric Karl Fischer Titration, lation Requirements, Fourth Edition,
Second Edition, December 2002; re- April 2000; reaffirmed March 2006; in-
affirmed 2005; incorporated by ref- corporated by reference at § 250.1203;
erence at § 250.1202; (41) API MPMS, Chapter 14—Natural
(34) API MPMS, Chapter 11.1—Vol- Gas Fluids Measurement, Section 3—
ume Correction Factors, Volume 1, Concentric, Square-Edged Orifice Me-
Table 5A—Generalized Crude Oils and ters; Part 3—Natural Gas Applications;
JP–4 Correction of Observed API Grav- Third Edition, August 1992; Errata
ity to API Gravity at 60 °F, and Table March 1994, reaffirmed, February 2009;
6A—Generalized Crude Oils and JP–4 incorporated by reference at § 250.1203;

Correction of Volume to 60 °F Against (42) API MPMS, Chapter 14.5/GPA
API Gravity at 60 °F, API Standard Standard 2172–09; Calculation of Gross
81
§ 250.198 30 CFR Ch. II (7–1–18 Edition)
Heating Value, Relative Density, Com- reference at §§ 250.292, 250.733, 250.800(c),

pressibility and Theoretical Hydro- 250.901(a), (d), and 250.1002(b);
carbon Liquid Content for Natural Gas (52) API RP 2SK, Recommended Prac-
Mixtures for Custody Transfer; Third tice for Design and Analysis of
Edition, January 2009; incorporated by Stationkeeping Systems for Floating
reference at § 250.1203; Structures, Third Edition, October
(43) API MPMS, Chapter 14—Natural 2005, Addendum, May 2008; incorporated
Gas Fluids Measurement, Section 6— by reference at §§ 250.800(c) and
Continuous Density Measurement, Sec- 250.901(a), (d);
ond Edition, April 1991; reaffirmed, (53) API RP 2SM, Recommended
February 2006; incorporated by ref- Practice for Design, Manufacture, In-
erence at § 250.1203; stallation, and Maintenance of Syn-
(44) API MPMS, Chapter 14—Natural thetic Fiber Ropes for Offshore Moor-
Gas Fluids Measurement, Section 8— ing, First Edition, March 2001, Adden-
Liquefied Petroleum Gas Measure- dum, May 2007; incorporated by ref-
ment, Second Edition, July 1997; re- erence at §§ 250.800(c) and 250.901;
affirmed, March 2006; incorporated by (54) API RP 2T, Recommended Prac-
reference at § 250.1203; tice for Planning, Designing, and Con-
(45) API MPMS, Chapter 20—Section structing Tension Leg Platforms, Sec-
1—Allocation Measurement, First Edi- ond Edition, August 1997; incorporated
tion, September 1993; reaffirmed Octo- by reference at § 250.901;
ber 2006; incorporated by reference at (55) ANSI/API RP 14B, Recommended
§ 250.1202; Practice for Design, Installation, Re-
(46) API MPMS, Chapter 21—Flow pair and Operation of Subsurface Safe-
Measurement Using Electronic Meter- ty Valve Systems, Fifth Edition, Octo-
ing Systems, Section 1—Electronic Gas ber 2005; incorporated by reference at
Measurement, First Edition, August §§ 250.802(b), 250.803(a), 250.814(d),
1993; reaffirmed, July 2005; incor- 250.828(c), and 250.880(c);
porated by reference at § 250.1203; (56) API RP 14C, Recommended Prac-
(47) API RP 2A–WSD, Recommended tice for Analysis, Design, Installation,
Practice for Planning, Designing and and Testing of Basic Surface Safety
Constructing Fixed Offshore Plat- Systems for Offshore Production Plat-
forms—Working Stress Design, Twen- forms, Seventh Edition, March 2001,
ty-first Edition, December 2000; Errata Reaffirmed: March 2007; incorporated
and Supplement 1, December 2002; Er- by reference at §§ 250.125(a), 250.292(j),
rata and Supplement 2, September 2005; 250.841(a), 250.842(a), 250.850, 250.852(a),
Errata and Supplement 3, October 2007; 250.855, 250.856(a), 250.858(a), 250.862(e),
incorporated by reference at §§ 250.901, 250.865(a), 250.867(a), 250.869(a) through
250.908, 250.919, and 250.920; (c), 250.872(a), 250.873(a), 250.874(a),
(48) API RP 2D, Operation and Main- 250.880(b) and (c), 250.1002(d), 250.1004(b),
tenance of Offshore Cranes, Sixth Edi- 250.1628(c) and (d), 250.1629(b), and
tion, May 2007; incorporated by ref- 250.1630(a);
erence at § 250.108; (57) API RP 14E, Recommended Prac-
(49) API RP 2FPS, RP for Planning, tice for Design and Installation of Off-
Designing, and Constructing Floating shore Production Platform Piping Sys-
Production Systems; First Edition, tems, Fifth Edition, October 1991; Re-
March 2001; incorporated by reference affirmed, January 2013; incorporated by
at § 250.901; reference at §§ 250.841(b), 250.842(a), and
(50) API RP 2I, In-Service Inspection 250.1628(b) and (d);
of Mooring Hardware for Floating (58) API RP 14F, Recommended Prac-
Structures; Third Edition, April 2008; tice for Design, Installation, and Main-
incorporated by reference at § 250.901(a) tenance of Electrical Systems for
and (d); Fixed and Floating Offshore Petroleum
(51) API RP 2RD, Recommended Facilities for Unclassified and Class 1,
Practice for Design of Risers for Float- Division 1 and Division 2 Locations,
ing Production Systems (FPSs) and Upstream Segment, Fifth Edition, July
Tension-Leg Platforms (TLPs), First 2008, Reaffirmed: April 2013; incor-

Edition, June 1998; reaffirmed, May porated by reference at §§ 250.114(c),
2006, Errata, June 2009; incorporated by 250.842(b), 250.862(e), and 250.1629(b);
82
(59) API RP 14FZ, Recommended §§ 250.114(a), 250.459, 250.842(a), 250.862(a)

Practice for Design and Installation of and (e), 250.872(a), 250.1628(b) and (d),
Electrical Systems for Fixed and and 250.1629(b);
Floating Offshore Petroleum Facilities (67) API RP 2556, Recommended Prac-
for Unclassified and Class I, Zone 0, tice for Correcting Gauge Tables for In-
Zone 1 and Zone 2 Locations, First Edi- crustation, Second Edition, August
tion, September 2001, Reaffirmed: 1993; reaffirmed November 2003; incor-
March 2007; incorporated by reference porated by reference at § 250.1202;
at §§ 250.114(c), 250.842(b), 250.862(e), and (68) ANSI/API Specification Q1
250.1629(b); (ANSI/API Spec. Q1), Specification for
(60) API RP 14G, Recommended Prac- Quality Programs for the Petroleum,
tice for Fire Prevention and Control on Petrochemical and Natural Gas Indus-
Fixed Open-type Offshore Production try, Eighth Edition, December 2007, Ad-
Platforms, Fourth Edition, April 2007; dendum 1, June 2010; incorporated by
incorporated by reference at reference at §§ 250.730, 250.801(b) and (c);
§§ 250.859(a), 250.862(e), 250.880(c), and (69) API Spec. 2C, Specification for
250.1629(b); Offshore Pedestal Mounted Cranes,
(61) API RP 14H, Recommended Prac- Sixth Edition, March 2004, Effective
tice for Installation, Maintenance and Date: September 2004; incorporated by
Repair of Surface Safety Valves and reference at § 250.108;
Underwater Safety Valves Offshore,
(70) ANSI/API Specification 6A
Fifth Edition, August 2007; incor-
(ANSI/API Spec. 6A), Specification for
porated by reference at §§ 250.820,
Wellhead and Christmas Tree Equip-
250.834, 250.836, and 250.880(c);
(62) API RP 14J, Recommended Prac- ment, Nineteenth Edition, July 2004;
tice for Design and Hazards Analysis Errata 1 (September 2004), Errata 2
for Offshore Production Facilities, Sec- (April 2005), Errata 3 (June 2006) Errata
ond Edition, May 2001; Reaffirmed: 4 (August 2007), Errata 5 (May 2009), Ad-
January 2013; incorporated by reference dendum 1 (February 2008), Addenda 2, 3,
at §§ 250.800(b) and (c), 250.842(b), and and 4 (December 2008); incorporated by
250.901(a); reference at §§ 250.730, 250.802(a),
(63) API Standard 53, Blowout Pre- 250.803(a), 250.833, 250.873(b), 250.874(g),
vention Equipment Systems for Drill- and 250.1002(b);
ing Wells, Fourth Edition, November (71) API Spec. 6AV1, Specification for
2012, incorporated by reference at Verification Test of Wellhead Surface
§§ 250.730, 250.735, 250.737, and 250.739; Safety Valves and Underwater Safety
(64) API RP 65, Recommended Prac- Valves for Offshore Service, First Edi-
tice for Cementing Shallow Water Flow tion, February 1, 1996; reaffirmed April
Zones in Deepwater Wells, First Edi- 2008; incorporated by reference at
tion, September 2002; incorporated by §§ 250.802(a), 250.833, 250.873(b), and
reference at § 250.415; 250.874(g);
(65) API RP 500, Recommended Prac- (72) ANSI/API Spec. 6D, Specification
tice for Classification of Locations for for Pipeline Valves, Twenty-third Edi-
Electrical Installations at Petroleum tion, April 2008; Effective Date: October
Facilities Classified as Class I, Division 1, 2008, Errata 1, June 2008; Errata 2,
1 and Division 2, Second Edition, No- November 2008; Errata 3, February 2009;
vember 1997; Errata (August 17, 1998), Addendum 1, October 2009; Contains
Reaffirmed November 2002; incor- API Monogram Annex as Part of U.S.
porated by reference at §§ 250.114(a), National Adoption; ISO 14313:2007
250.459, 250.842(a), 250.862(a) and (e), (Identical), Petroleum and natural gas
250.872(a), 250.1628(b) and (d), and industries—Pipeline transportation
250.1629(b); systems—Pipeline valves; incorporated
(66) API RP 505, Recommended Prac- by reference at § 250.1002;
tice for Classification of Locations for (73) ANSI/API Spec. 14A, Specifica-
Electrical Installations at Petroleum tion for Subsurface Safety Valve
Facilities Classified as Class I, Zone 0, Equipment, Eleventh Edition, October
Zone 1, and Zone 2, First Edition, No- 2005, Reaffirmed, June 2012; incor-
vember 1997; Reaffirmed, August 2013; porated by reference at §§ 250.802(b) and
incorporated by reference at 250.803(a);
83
§ 250.198 30 CFR Ch. II (7–1–18 Edition)
(74) ANSI/API Spec. 17J, Specifica- Crude Oils, Refined Products, and Lu-
tion for Unbonded Flexible Pipe, Third bricating Oils; May 2004, (incorporating
Edition, July 2008, incorporated by ref- Addendum 1, September 2007); incor-
erence at §§ 250.852(e), 250.1002(b), and porated by reference at § 250.1202(a)(2),
250.1007(a). (a)(3), (g), and (l)(4);
(75) API Standard 2552, USA Standard (84) API Manual of Petroleum Meas-
Method for Measurement and Calibra- urement Standards (MPMS) Chapter
tion of Spheres and Spheroids, First 12—Calculation of Petroleum Quan-
Edition, 1966; reaffirmed, October 2007; tities, Section 2—Calculation of Petro-
incorporated by reference at § 250.1202; leum Quantities Using Dynamic Meas-
(76) API Standard 2555, Method for urement Methods and Volumetric Cor-
Liquid Calibration of Tanks, First Edi- rection Factors, Part 3—Proving Re-
tion, September 1966; reaffirmed March ports; First Edition, reaffirmed 2009;
2002; incorporated by reference at incorporated by reference at
§ 250.1202; § 250.1202(a)(2), (a)(3), and (g);
(77) API RP 90, Annular Casing Pres- (85) API Manual of Petroleum Meas-
sure Management for Offshore Wells, urement Standards (MPMS) Chapter
First Edition, August 2006, incor- 12—Calculation of Petroleum Quan-
porated by reference at § 250.518; tities, Section 2—Calculation of Petro-
(78) API Standard 65—Part 2, Iso- leum Quantities Using Dynamic Meas-
lating Potential Flow Zones During urement Methods and Volumetric Cor-
Well Construction; Second Edition, De- rection Factors, Part 4—Calculation of
cember 2010; incorporated by reference Base Prover Volumes by the
at § 250.415(f); Waterdraw Method, First Edition, re-
(79) API RP 75, Recommended Prac- affirmed 2009; incorporated by ref-
tice for Development of a Safety and erence at § 250.1202(a)(2), (a)(3), (f)(1),
Environmental Management Program and (g);
for Offshore Operations and Facilities, (86) API Manual of Petroleum Meas-
Third Edition, May 2004, Reaffirmed urement Standards (MPMS) Chapter
May 2008; incorporated by reference at 21—Flow Measurement Using Elec-
§§ 250.1900, 250.1902, 250.1903, 250.1909, tronic Metering Systems, Section 2—
250.1920; Electronic Liquid Volume Measure-
(80) API Manual of Petroleum Meas- ment Using Positive Displacement and
urement Standards (MPMS) Chapter Turbine Meters; First Edition, June
4—Proving Systems, Section 8—Oper- 1998; incorporated by reference at
ation of Proving Systems; First Edi- § 250.1202(a)(2);
tion, reaffirmed March 2007; incor- (87) API Manual of Petroleum Meas-
porated by reference at § 250.1202(a)(2), urement Standards Chapter 21—Flow
(a)(3), (f)(1), and (g); Measurement Using Electronic Meter-
(81) API Manual of Petroleum Meas- ing Systems, Addendum to Section 2—
urement Standards (MPMS) Chapter Flow Measurement Using Electronic
5—Metering, Section 6—Measurement Metering Systems, Inferred Mass; First
of Liquid Hydrocarbons by Coriolis Me- Edition, reaffirmed February 2006; in-
ters; First Edition, reaffirmed March corporated by reference at
2008; incorporated by reference at § 250.1202(a)(2);
§ 250.1202(a)(2) and (3); (88) API RP 86, API Recommended
(82) API Manual of Petroleum Meas- Practice for Measurement of Multi-
urement Standards (MPMS) Chapter phase Flow; First Edition, September
5—Metering, Section 8—Measurement 2005; incorporated by reference at
of Liquid Hydrocarbons by Ultrasonic § 250.1202(a)(2), (a)(3), and § 250.1203(b)(2);
Flow Meters Using Transit Time Tech- (89) ANSI/API Specification 11D1,
nology; First Edition, February 2005; Packers and Bridge Plugs, Second Edi-
incorporated by reference at tion, July 2009, incorporated by ref-
§ 250.1202(a)(2) and (3); erence at §§ 250.518, 250.619, and 250.1703;
(83) API Manual of Petroleum Meas- (90) ANSI/API Specification 16A,
urement Standards (MPMS) Chapter Specification for Drill-through Equip-
11—Physical Properties Data, Section ment, Third Edition, June 2004, Re-
1—Temperature and Pressure Volume affirmed August 2010, incorporated by
Correction Factors for Generalized reference at § 250.730;
84
(91) ANSI/API Specification 16C, (5) ASTM Standard C 595–08, approved

Specification for Choke and Kill Sys- January 1, 2008, Standard Specification
tems, First Edition, January 1993, Re- for Blended Hydraulic Cements; incor-
affirmed July 2010; incorporated by ref- porated by reference at § 250.901;
erence at § 250.730; (j) American Welding Society (AWS),
(92) API Specification 16D, Specifica- AWS Codes, 8669 NW 36 Street, #130,
tion for Control Systems for Drilling Miami, FL 33126; http://www.aws.org;
Well Control Equipment and Control phone: 800–443–9353:
Systems for Diverter Equipment, Sec- (1) AWS D1.1:2000, Structural Welding
ond Edition, July 2004, Reaffirmed Au- Code—Steel, 17th Edition, October 18,
gust 2013, incorporated by reference at 1999; incorporated by reference at
§ 250.730; § 250.901;
(93) ANSI/API Specification 17D, De- (2) AWS D1.4–98, Structural Welding
sign and Operation of Subsea Produc- Code—Reinforcing Steel, 1998 Edition;
tion Systems—Subsea Wellhead and incorporated by reference at § 250.901;
Tree Equipment, Second Edition, May (3) AWS D3.6M:1999, Specification for
2011, incorporated by reference at Underwater Welding (1999); incor-
§ 250.730; porated by reference at § 250.901.
(94) ANSI/API Recommended Prac- (k) National Association of Corrosion
tice 17H, Remotely Operated Vehicle Engineers (NACE) International, NACE
Interfaces on Subsea Production Sys- Standards, Park Ten Place, Houston,
tems, First Edition, July 2004, Re- TX 77084; http://www.nace.org; phone:
affirmed January 2009, incorporated by 281–228–6200:
reference at § 250.734; (1) NACE Standard MR0175–2003,
(95) ANSI/API RP 2N, Third Edition, Standard Material Requirements, Met-
‘‘Recommended Practice for Planning, als for Sulfide Stress Cracking and
Designing, and Constructing Struc- Stress Corrosion Cracking Resistance
tures and Pipelines for Arctic Condi- in Sour Oilfield Environments, Revised
tions’’, Third Edition, April 2015; incor- January 17, 2003; incorporated by ref-
porated by reference at § 250.470(g); and erence at §§ 250.901 and 250.490;
(96) API 570 Piping Inspection Code: (2) NACE Standard RP0176–2003,
In-service Inspection, Rating, Repair, Standard Recommended Practice, Cor-
and Alteration of Piping Systems, rosion Control of Steel Fixed Offshore
Third Edition, November 2009; incor- Structures Associated with Petroleum
porated by reference at § 250.841(b). Production; incorporated by reference
(i) American Society for Testing and at § 250.901.
Materials (ASTM), ASTM Standards, (l) American Gas Association (AGA
100 Bar Harbor Drive, P.O. Box C700, Reports), 400 North Capitol Street,
West Conshohocken, PA 19428–2959; NW., Suite 450, Washington, DC 20001,
http://www.astm.org; phone: 1–877–909– http://www.aga.org; phone: 202–824–7000;
2786: (1) AGA Report No. 7—Measurement
(1) ASTM Standard C 33–07, approved of Natural Gas by Turbine Meters; Re-
December 15, 2007, Standard Specifica- vised February 2006; incorporated by
tion for Concrete Aggregates; incor- reference at § 250.1203(b)(2);
porated by reference at § 250.901; (2) AGA Report No. 9—Measurement
(2) ASTM Standard C 94/C 94M–07, ap- of Gas by Multipath Ultrasonic Meters;
proved January 1, 2007, Standard Speci- Second Edition, April 2007; incor-
fication for Ready-Mixed Concrete; in- porated by reference at § 250.1203(b)(2);
corporated by reference at § 250.901; (3) AGA Report No. 10—Speed of
(3) ASTM Standard C 150–07, approved Sound in Natural Gas and Other Re-
May 1, 2007, Standard Specification for lated Hydrocarbon Gases; Copyright
Portland Cement; incorporated by ref- 2003; incorporated by reference at
erence at § 250.901; § 250.1203(b)(2).
(4) ASTM Standard C 330–05, approved (m) International Organization for
December 15, 2005, Standard Specifica- Standardization (ISO), 1, ch. de la Voie-
tion for Lightweight Aggregates for Creuse, CP 56, CH–1211, Geneva 20,
Structural Concrete; incorporated by Switzerland; www.iso.org; phone: 41–22–
reference at § 250.901; 749–01–11:
85
§ 250.199 30 CFR Ch. II (7–1–18 Edition)
(1) ISO/IEC (International Electro- under 44 U.S.C. 3501 et seq. The table in
technical Commission) 17011, Con- paragraph (e) of this section lists the
formity assessment—General require- subpart in the rule requiring the infor-
ments for accreditation bodies accred- mation and its title, provides the OMB
iting conformity assessment bodies, control number, and summarizes the
First edition 2004–09–01; Corrected reasons for collecting the information
version 2005–02–15; incorporated by ref- and how BSEE uses the information.
erence at §§ 250.1900, 250.1903, 250.1904, The associated BSEE forms required by
and 250.1922. this part are listed at the end of this
(2) [Reserved]
table with the relevant information.
(n) Center for Offshore Safety (COS),
1990 Post Oak Blvd., Suite 1370, Hous- (b) Respondents are OCS oil, gas, and
ton, TX 77056; sulphur lessees and operators. The re-
www.centerforoffshoresafety.org; phone: quirement to respond to the informa-
832–495–4925. tion collections in this part is man-
(1) COS Safety Publication COS–2–01, dated under the Act (43 U.S.C. 1331 et
Qualification and Competence Require- seq.) and the Act’s Amendments of 1978
ments for Audit Teams and Auditors (43 U.S.C. 1801 et seq.). Some responses
Performing Third-party SEMS Audits are also required to obtain or retain a
of Deepwater Operations, First Edition, benefit or may be voluntary. Propri-
Effective Date October 2012; incor- etary information will be protected
porated by reference at §§ 250.1900, under § 250.197, Data and information to
250.1903, 250.1904, and 250.1921. be made available to the public or for
(2) COS Safety Publication COS–2–03, limited inspection; parts 30 CFR Parts
Requirements for Third-party SEMS 251, 252; and the Freedom of Informa-
Auditing and Certification of Deep- tion Act (5 U.S.C. 552) and its imple-
water Operations, First Edition, Effec-
menting regulations at 43 CFR part 2.
tive Date October 2012; incorporated by
reference at §§ 250.1900, 250.1903, 250.1904, (c) The Paperwork Reduction Act of
and 250.1920. 1995 requires us to inform the public
(3) COS Safety Publication COS–2–04, that an agency may not conduct or
Requirements for Accreditation of sponsor, and you are not required to re-
Audit Service Providers Performing spond to, a collection of information
SEMS Audits and Certification of unless it displays a currently valid
Deepwater Operations, First Edition, OMB control number.
Effective Date October 2012; incor- (d) Send comments regarding any as-
porated by reference at §§ 250.1900, pect of the collections of information
250.1903, 250.1904, and 250.1922. under this part, including suggestions
[76 FR 64462, Oct. 18, 2011, as amended at 77 for reducing the burden, to the Infor-
FR 18921, Mar. 29, 2012; 77 FR 50891, Aug. 22, mation Collection Clearance Officer,
2012; 78 FR 20440, Apr. 5, 2013; 81 FR 26015, Bureau of Safety and Environmental
Apr. 29, 2016; 81 FR 36149, June 6, 2016; 81 FR Enforcement, 45600 Woodland Road,
46560, July 15, 2016; 81 FR 61917, Sept. 7, 2016]
Sterling, VA 20166.
§ 250.199 Paperwork Reduction Act (e) BSEE is collecting this informa-
statements—information collection. tion for the reasons given in the fol-
(a) OMB has approved the informa- lowing table:
tion collection requirements in part 250
30 CFR Subpart, title and/or BSEE Form (OMB Control No.) BSEE collects this information and uses it to:
(1) Subpart A, General (1014–0022), including Forms BSEE–0011, iSEE; (i) Determine that activities on the OCS comply
BSEE–0132, Evacuation Statistics; BSEE–0143, Facility/Equipment Dam- with statutory and regulatory requirements; are
age Report; BSEE–1832, Notification of Incidents of Noncompliance. safe and protect the environment; and result in
diligent development and production on OCS
leases.
(ii) Support the unproved and proved reserve esti-
mation, resource assessment, and fair market
value determinations.
(iii) Assess damage and project any disruption of
oil and gas production from the OCS after a
major natural occurrence.
86
(2) Subpart B, Plans and Information (1014–0024) ........................................ Evaluate Deepwater Operations Plans for compli-
ance with statutory and regulatory requirements
(3) Subpart C, Pollution Prevention and Control (1014–0023) ....................... (i) Evaluate measures to prevent unauthorized dis-
charge of pollutants into the offshore waters.
(ii) Ensure action is taken to control pollution.
(4) Subpart D, Oil and Gas and Drilling Operations (1014–0018), including (i) Evaluate the equipment and procedures to be
Forms BSEE–0125, End of Operations Report; BSEE–0133, Well Activity used in drilling operations on the OCS.
Report; and BSEE–0133S, Open Hole Data Report.
(ii) Ensure that drilling operations meet statutory
and regulatory requirements.
(5) Subpart E, Oil and Gas Well-Completion Operations (1014–0004) .......... (i) Evaluate the equipment and procedures to be
used in well-completion operations on the OCS.
(ii) Ensure that well-completion operations meet
statutory and regulatory requirements.
(6) Subpart F, Oil and Gas Well Workover Operations (1014–0001) ............. (i) Evaluate the equipment and procedures to be
used during well-workover operations on the
OCS.
(ii) Ensure that well-workover operations meet
(7) Subpart G, Blowout Preventer Systems (1014–0028), including Form (i) Evaluate the equipment and procedures to be
BSEE–0144, Rig Movement Notification Report. used during well drilling, completion, workover,
and abandonment operations on the OCS.
(ii) Ensure that well operations meet statutory and
regulatory requirements.
(8) Subpart H, Oil and Gas Production Safety Systems (1014–0003) ........... (i) Evaluate the equipment and procedures that
will be used during production operations on the
OCS.
(ii) Ensure that production operations meet statu-
tory and regulatory requirements.
(9) Subpart I, Platforms and Structures (1014–0011) ..................................... (i) Evaluate the design, fabrication, and installation
of platforms on the OCS.
(ii) Ensure the structural integrity of platforms in-
stalled on the OCS.
(10) Subpart J, Pipelines and Pipeline Rights-of-Way (1014–0016), includ- (i) Evaluate the design, installation, and operation
ing Form BSEE–0149, Assignment of Federal OCS Pipeline Right-of-Way of pipelines on the OCS.
Grant.
(ii) Ensure that pipeline operations meet statutory
and regulatory requirements.
(11) Subpart K, Oil and Gas Production Rates (1014–0019), including (i) Evaluate production rates for hydrocarbons pro-
Forms BSEE–0126, Well Potential Test Report and BSEE–0128, Semi- duced on the OCS.
annual Well Test Report.
(ii) Ensure economic maximization of ultimate hy-
drocarbon recovery.
(12) Subpart L, Oil and Gas Production Measurement, Surface Commin- (i) Evaluate the measurement of production, com-
gling, and Security (1014–0002). mingling of hydrocarbons, and site security
plans.
(ii) Ensure that produced hydrocarbons are meas-
ured and commingled to provide for accurate
royalty payments and security.
(13) Subpart M, Unitization (1014–0015) ........................................................ (i) Evaluate the unitization of leases.
(ii) Ensure that unitization prevents waste, con-
serves natural resources, and protects correl-
ative rights.
(14) Subpart N, Remedies and Penalties ........................................................ (The requirements in subpart N are exempt from
the Paperwork Reduction Act of 1995 according
to 5 CFR 1320.4).
(15) Subpart O, Well Control and Production Safety Training (1014–0008) .. (i) Evaluate training program curricula for OCS
workers, course schedules, and attendance.
(ii) Ensure that training programs are technically
accurate and sufficient to meet statutory and
regulatory requirements, and that workers are
properly trained.
(16) Subpart P, Sulfur Operations (1014–0006) ............................................. (i) Evaluate sulfur exploration and development
operations on the OCS.
(ii) Ensure that OCS sulfur operations meet statu-
tory and regulatory requirements and will result
in diligent development and production of sulfur
leases.
(17) Subpart Q, Decommissioning Activities (1014–0010) ............................. Ensure that decommissioning activities, site clear-
ance, and platform or pipeline removal are prop-

erly performed to meet statutory and regulatory
requirements and do not conflict with other
users of the OCS.
87
§ 250.200 30 CFR Ch. II (7–1–18 Edition)
(18) Subpart S, Safety and Environmental Management Systems (1014– (i) Evaluate operators’ policies and procedures to
0017), including Form BSEE–0131, Performance Measures Data. assure safety and environmental protection
while conducting OCS operations (including
those operations conducted by contractor and
subcontractor personnel).
(ii) Evaluate Performance Measures Data relating
to risk and number of accidents, injuries, and oil
spills during OCS activities.
(19) Application for Permit to Drill (APD, Revised APD), Form BSEE–0123; (i) Evaluate and approve the adequacy of the
and Supplemental APD Information Sheet, Form BSEE–0123S, and all equipment, materials, and/or procedures that
supporting documentation (1014–0025). the lessee or operator plans to use during drill-
ing.
(ii) Ensure that applicable OCS operations meet
(20) Application for Permit to Modify (APM), Form BSEE–0124, and sup- (i) Evaluate and approve the adequacy of the
porting documentation (1014–0026). equipment, materials, and/or procedures that
the lessee or operator plans to use during drill-
ing and to evaluate well plan modifications and
changes in major equipment.
(ii) Ensure that applicable OCS operations meet
[76 FR 64462, Oct. 18, 2011, as amended at 81 Amendment means a change you make
FR 26015, Apr. 29, 2016; 81 FR 36149, June 6, to an EP, DPP, or DOCD that is pend-
2016] ing before BOEM for a decision (see 30
CFR 550.232(d) and 550.267(d)).
Subpart B—Plans and Information Modification means a change required
by the Regional Supervisor to an EP,
GENERAL INFORMATION
DPP, or DOCD (see 30 CFR 550.233(b)(2)
§ 250.200 Definitions. and 550.270(b)(2)) that is pending before
BOEM for a decision because the OCS
Acronyms and terms used in this sub- plan is inconsistent with applicable re-
part have the following meanings: quirements.
(a) Acronyms used frequently in this
New or unusual technology means
subpart are listed alphabetically below:
equipment or procedures that:
BOEM means Bureau of Ocean En-
(1) Have not been used previously or
ergy Management of the Department of
extensively in a BSEE OCS Region;
the Interior.
BSEE means Bureau of Safety and (2) Have not been used previously
Environmental Enforcement of the De- under the anticipated operating condi-
partment of the Interior. tions; or
CID means Conservation Information (3) Have operating characteristics
Document. that are outside the performance pa-
CZMA means Coastal Zone Manage- rameters established by this part.
ment Act. Non-conventional production or comple-
DOCD means Development Oper- tion technology includes, but is not lim-
ations Coordination Document. ited to, floating production systems,
DPP means Development and Produc- tension leg platforms, spars, floating
tion Plan. production, storage, and offloading sys-
DWOP means Deepwater Operations tems, guyed towers, compliant towers,
Plan. subsea manifolds, and other subsea pro-
EIA means Environmental Impact duction components that rely on a re-
Analysis. mote site or host facility for utility
EP means Exploration Plan. and well control services.
NPDES means National Pollutant Offshore vehicle means a vehicle that
Discharge Elimination System. is capable of being driven on ice.
NTL means Notice to Lessees and Op- Resubmitted OCS plan means an EP,
erators. DPP, or DOCD that contains changes
OCS means Outer Continental Shelf. you make to an OCS plan that BOEM
(b) Terms used in this subpart are has disapproved (see 30 CFR 550.234(b),
listed alphabetically below: 550.272(a), and 550.273(b)).
88
Revised OCS plan means an EP, DPP, (4) Information is not necessary or
or DOCD that proposes changes to an required for a State to determine con-
approved OCS plan, such as those in sistency with their CZMA Plan.
the location of a well or platform, type (d) Referencing. In preparing your
of drilling unit, or location of the on- proposed plan or document, you may
shore support base (see 30 CFR reference information and data dis-
550.283(a)). cussed in other plans or documents you
Supplemental OCS plan means an EP, previously submitted or that are other-
DPP, or DOCD that proposes the addi- wise readily available to BSEE.
tion to an approved OCS plan of an ac-
§§ 250.202–250.203 [Reserved]
tivity that requires approval of an ap-
plication or permit (see 30 CFR § 250.204 How must I protect the rights
550.283(b)). of the Federal government?
(a) To protect the rights of the Fed-
§ 250.201 What plans and information
must I submit before I conduct any eral government, you must either:
activities on my lease or unit? (1) Drill and produce the wells that
the Regional Supervisor determines are
(a) Plans and documents. Before you necessary to protect the Federal gov-
conduct the activities on your lease or ernment from loss due to production on
unit listed in the following table, you other leases or units or from adjacent
must submit, and BSEE must approve, lands under the jurisdiction of other
the listed plans and documents. Your entities (e.g., State and foreign govern-
plans and documents may cover one or ments); or
more leases or units. (2) Pay a sum that the Regional Su-
pervisor determines as adequate to
You must submit
a(n) . . . Before you . . . compensate the Federal government
for your failure to drill and produce
(1) [Reserved] any well.
(2) [Reserved]
(b) Payment under paragraph (a)(2) of
(3) [Reserved]
(4) Deepwater Op- Conduct post-drilling installation activi-
this section may constitute production
erations Plan ties in any water depth associated in paying quantities for the purpose of
(DWOP), with a development project that will extending the lease term.
involve the use of a non-conven- (c) You must complete and produce
tional production or completion tech-
nology. any penetrated hydrocarbon-bearing
(5) [Reserved] zone that the Regional Supervisor de-
(6) [Reserved] termines is necessary to conform to
sound conservation practices.
(b) Submitting additional information.
On a case-by-case basis, the Regional § 250.205 Are there special require-
Supervisor may require you to submit ments if my well affects an adjacent
property?
additional information if the Regional
Supervisor determines that it is nec- For wells that could intersect or
essary to evaluate your proposed plan drain an adjacent property, the Re-
or document. gional Supervisor may require special
(c) Limiting information. The Regional measures to protect the rights of the
Director may limit the amount of in- Federal government and objecting les-
formation or analyses that you other- sees or operators of adjacent leases or
wise must provide in your proposed units.
plan or document under this subpart POST-APPROVAL REQUIREMENTS FOR THE
when: EP, DPP, AND DOCD
(1) Sufficient applicable information
or analysis is readily available to § 250.282 Do I have to conduct post-ap-
BSEE; proval monitoring?
(2) Other coastal or marine resources The Regional Supervisor may direct
are not present or affected; you to conduct monitoring programs.
(3) Other factors such as techno- You must retain copies of all moni-
logical advances affect information toring data obtained or derived from
needs; or your monitoring programs and make
89
§ 250.286 30 CFR Ch. II (7–1–18 Edition)
them available to BSEE upon request. § 250.288 When and how must I submit
The Regional Supervisor may require the Conceptual Plan?
you to: You must submit four copies, or one
(a) Monitoring plans. Submit moni- hard copy and one electronic version,
toring plans for approval before you of the Conceptual Plan to the Regional
begin work; and Director after you have decided on the
(b) Monitoring reports. Prepare and general concept(s) for development and
submit reports that summarize and before you begin engineering design of
analyze data and information obtained the well safety control system or
or derived from your monitoring pro- subsea production systems to be used
grams. The Regional Supervisor will after well completion.
specify requirements for preparing and
submitting these reports. § 250.289 What must the Conceptual
Plan contain?
DEEPWATER OPERATIONS PLAN (DWOP) In the Conceptual Plan, you must ex-
plain the general design basis and phi-
§ 250.286 What is a DWOP? losophy that you will use to develop
(a) A DWOP is a plan that provides the field. You must include the fol-
sufficient information for BSEE to re- lowing information:
view a deepwater development project, (a) An overview of the development
and any other project that uses non- concept(s);
conventional production or completion (b) A well location plat;
technology, from a total system ap- (c) The system control type (i.e., di-
rect hydraulic or electro-hydraulic);
proach. The DWOP does not replace,
and
but supplements other submittals re-
(d) The distance from each of the
quired by the regulations such as
wells to the host platform.
BOEM Exploration Plans, Development
and Production Plans, and Develop- § 250.290 What operations require ap-
ment Operations Coordination Docu- proval of the Conceptual Plan?
ments. BSEE will use the information You may not complete any produc-
in your DWOP to determine whether tion well or install the subsea wellhead
the project will be developed in an ac- and well safety control system (often
ceptable manner, particularly with re- called the tree) before BSEE has ap-
spect to operational safety and envi- proved the Conceptual Plan.
ronmental protection issues involved
with non-conventional production or § 250.291 When and how must I submit
completion technology. the DWOP?
(b) The DWOP process consists of two You must submit four copies, or one
parts: a Conceptual Plan and the hard copy and one electronic version,
DWOP. Section 250.289 prescribes what of the DWOP to the Regional Director
the Conceptual Plan must contain, and after you have substantially completed
§ 250.292 prescribes what the DWOP safety system design and before you
must contain. begin to procure or fabricate the safety
and operational systems (other than
§ 250.287 For what development the tree), production platforms, pipe-
projects must I submit a DWOP? lines, or other parts of the production
You must submit a DWOP for each system.
development project in which you will § 250.292 What must the DWOP con-
use non-conventional production or tain?
completion technology, regardless of
water depth. If you are unsure whether You must include the following infor-
mation in your DWOP:
BSEE considers the technology of your
(a) A description and schematic of
project non-conventional, you must
the typical wellbore, casing, and com-
contact the Regional Supervisor for

pletion;
guidance.
(b) Structural design, fabrication,
and installation information for each
90
surface system, including host facili- the discussions required by paragraphs

ties; (f) and (g) of this section:
(c) Design, fabrication, and installa- (1) A detailed description and draw-
tion information on the mooring sys- ings of the FSHR, buoy and the tether
tems for each surface system; system;
(d) Information on any active (2) Detailed information on the de-
stationkeeping system(s) involving sign, fabrication, and installation of
thrusters or other means of propulsion the FSHR, buoy and tether system, in-
used with a surface system; cluding pressure ratings, fatigue life,
(e) Information concerning the drill- and yield strengths;
ing and completion systems; (3) A description of how you met the
(f) Design and fabrication informa- design requirements, load cases, and al-
tion for each riser system (e.g., drill- lowable stresses for each load case ac-
ing, workover, production, and injec- cording to API RP 2RD (as incor-
tion);
porated by reference in § 250.198);
(g) Pipeline information;
(4) Detailed information regarding
(h) Information about the design, fab- the tether system used to connect the
rication, and operation of an offtake
FSHR to a buoyancy air can;
system for transferring produced hy-
drocarbons to a transport vessel; (5) Descriptions of your monitoring
system and monitoring plan to monitor
(i) Information about subsea wells
and associated systems that constitute the pipeline FSHR and tether for fa-
all or part of a single project develop- tigue, stress, and any other abnormal
ment covered by the DWOP; condition (e.g., corrosion) that may
(j) Flow schematics and Safety Anal- negatively impact the riser or tether;
ysis Function Evaluation (SAFE) and
charts (API RP 14C, subsection 4.3c, in- (6) Documentation that the tether
corporated by reference in § 250.198) of system and connection accessories for
the production system from the Sur- the pipeline FSHR have been certified
face Controlled Subsurface Safety by an approved classification society or
Valve (SCSSV) downstream to the first equivalent and verified by the CVA re-
item of separation equipment; quired in subpart I of this part; and
(k) A description of the surface/ (q) Payment of the service fee listed
subsea safety system and emergency in § 250.125.
support systems to include a table that
depicts what valves will close, at what
FR 26017, Apr. 29, 2016]
times, and for what events or reasons;
(l) A general description of the oper- § 250.293 What operations require ap-
ating procedures, including a table proval of the DWOP?
summarizing the curtailment of pro-
duction and offloading based on oper- You may not begin production until
ational considerations; BSEE approves your DWOP.
(m) A description of the facility in-
§ 250.294 May I combine the Concep-
stallation and commissioning proce-
tual Plan and the DWOP?
dure;
(n) A discussion of any new tech- If your development project meets
nology that affects hydrocarbon recov- the following criteria, you may submit
ery systems; a combined Conceptual Plan/DWOP on
(o) A list of any alternate compliance or before the deadline for submitting
procedures or departures for which you the Conceptual Plan.
anticipate requesting approval; (a) The project is located in water
(p) If you propose to use a pipeline depths of less than 400 meters (1,312
free standing hybrid riser (FSHR) on a feet); and
permanent installation that utilizes a (b) The project is similar to projects
critical chain, wire rope, or synthetic
involving non-conventional production

tether to connect the top of the riser to or completion technology for which
a buoyancy air can, provide the fol- you have obtained approval previously.
lowing information in your DWOP in
91
§ 250.295 30 CFR Ch. II (7–1–18 Edition)
§ 250.295 When must I revise my nents that could cause unreasonable

DWOP? degradation to the marine environ-
You must revise either the Concep- ment. No petroleum-based substances,
tual Plan or your DWOP to reflect including diesel fuel, may be added to
changes in your development project the drilling mud system without prior
that materially alter the facilities, approval of the District Manager. For
equipment, and systems described in Arctic OCS exploratory drilling, you
your plan. You must submit the revi- must capture all petroleum-based mud
sion within 60 days after any material to prevent its discharge into the ma-
change to the information required for rine environment. The Regional Super-
that part of your plan. visor may also require you to capture,
during your Arctic OCS exploratory
drilling operations, all water-based
Subpart C—Pollution Prevention mud from operations after completion
and Control of the hole for the conductor casing to
prevent its discharge into the marine
§ 250.300 Pollution prevention.
environment, based on various factors
(a) During the exploration, develop- including, but not limited to:
ment, production, and transportation (i) The proximity of your exploratory
of oil and gas or sulphur, the lessee drilling operation to subsistence hunt-
shall take measures to prevent unau- ing and fishing locations;
thorized discharge of pollutants into (ii) The extent to which discharged
the offshore waters. The lessee shall mud may cause marine mammals to
not create conditions that will pose un- alter their migratory patterns in a
reasonable risk to public health, life, manner that impedes subsistence users’
property, aquatic life, wildlife, recre- access to, or use of, those resources, or
ation, navigation, commercial fishing, increases the risk of injury to subsist-
or other uses of the ocean. ence users; or
(1) When pollution occurs as a result (iii) The extent to which discharged
of operations conducted by or on behalf mud may adversely affect marine
of the lessee and the pollution damages mammals, fish, or their habitat.
or threatens to damage life (including (2) You must obtain approval from
fish and other aquatic life), property, the District Manager of the method
any mineral deposits (in areas leased or you plan to use to dispose of drill
not leased), or the marine, coastal, or cuttings, sand, and other well solids.
human environment, the control and For Arctic OCS exploratory drilling,
removal of the pollution to the satis- you must capture all cuttings from op-
faction of the District Manager shall be erations that utilize petroleum-based
at the expense of the lessee. Immediate mud to prevent their discharge into the
corrective action shall be taken in all marine environment. The Regional Su-
cases where pollution has occurred. pervisor may also require you to cap-
Corrective action shall be subject to ture, during your Arctic OCS explor-
modification when directed by the Dis- atory drilling operations, all cuttings
trict Manager. from operations that utilize water-
(2) If the lessee fails to control and based mud after completion of the hole
remove the pollution, the Director, in for the conductor casing to prevent
cooperation with other appropriate their discharge into the marine envi-
Agencies of Federal, State, and local ronment, based on various factors in-
governments, or in cooperation with cluding, but not limited to:
the lessee, or both, shall have the right (i) The proximity of your exploratory
to control and remove the pollution at drilling operation to subsistence hunt-
the lessee’s expense. Such action shall ing and fishing locations;
not relieve the lessee of any responsi- (ii) The extent to which discharged
bility provided for by law. cuttings may cause marine mammals
(b)(1) The District Manager may re- to alter their migratory patterns in a
strict the rate of drilling fluid dis- manner that impedes subsistence users’
charges or prescribe alternative dis- access to, or use of, those resources, or
charge methods. The District Manager increases the risk of injury to subsist-
may also restrict the use of compo- ence users; or
92
(iii) The extent to which discharged marked container before transport over
cuttings may adversely affect marine offshore waters;
mammals, fish, or their habitat. (2) All cable, chain, or wire segments
(3) All hydrocarbon-handling equip- shall be recovered after use and se-
ment for testing and production such curely stored until suitable disposal is
as separators, tanks, and treaters shall accomplished;
be designed, installed, and operated to (3) Skid-mounted equipment, port-
prevent pollution. Maintenance or re- able containers, spools or reels, and
pairs which are necessary to prevent drums shall be marked with the own-
pollution of offshore waters shall be er’s name prior to use or transport over
undertaken immediately. offshore waters; and
(4) Curbs, gutters, drip pans, and (4) All markings must clearly iden-
drains shall be installed in deck areas tify the owner and must be durable
in a manner necessary to collect all enough to resist the effects of the envi-
contaminants not authorized for dis- ronmental conditions to which they
charge. Oil drainage shall be piped to a may be exposed.
properly designed, operated, and main- (d) Any of the items described in
tained sump system which will auto- paragraph (c) of this section that are
matically maintain the oil at a level lost overboard shall be recorded on the
sufficient to prevent discharge of oil facility’s daily operations report, as
into offshore waters. All gravity drains appropriate, and reported to the Dis-
shall be equipped with a water trap or trict Manager.
other means to prevent gas in the sump
system from escaping through the [76 FR 64462, Oct. 18, 2011, as amended at 81
drains. Sump piles shall not be used as FR 46560, July 15, 2016]
processing devices to treat or skim liq-
uids but may be used to collect treat- § 250.301 Inspection of facilities.
ed-produced water, treated-produced Drilling and production facilities
sand, or liquids from drip pans and shall be inspected daily or at intervals
deck drains and as a final trap for hy- approved or prescribed by the District
drocarbon liquids in the event of equip- Manager to determine if pollution is
ment upsets. Improperly designed, op- occurring. Necessary maintenance or
erated, or maintained sump piles which repairs shall be made immediately.
do not prevent the discharge of oil into Records of such inspections and repairs
offshore waters shall be replaced or re- shall be maintained at the facility or
paired. at a nearby manned facility for 2 years.
(5) On artificial islands, all vessels
containing hydrocarbons shall be Subpart D—Oil and Gas Drilling
placed inside an impervious berm or Operations
otherwise protected to contain spills.
Drainage shall be directed away from GENERAL REQUIREMENTS
the drilling rig to a sump. Drains and
sumps shall be constructed to prevent § 250.400 General requirements.
seepage.
Drilling operations must be con-
(6) Disposal of equipment, cables,
ducted in a safe manner to protect
chains, containers, or other materials
against harm or damage to life (includ-
into offshore waters is prohibited.
ing fish and other aquatic life), prop-
(c) Materials, equipment, tools, con- erty, natural resources of the Outer
tainers, and other items used in the Continental Shelf (OCS), including any
Outer Continental Shelf (OCS) which
mineral deposits (in areas leased and
are of such shape or configuration that
not leased), the National security or
they are likely to snag or damage fish-
defense, or the marine, coastal, or
ing devices shall be handled and
human environment. In addition to the
marked as follows:
requirements of this subpart, you must
(1) All loose material, small tools,
also follow the applicable requirements

and other small objects shall be kept in
of subpart G of this part.
a suitable storage area or a marked
container when not in use and in a [81 FR 26017, Apr. 29, 2016]
93
§§ 250.401–250.403 30 CFR Ch. II (7–1–18 Edition)
§§ 250.401–250.403 [Reserved] § 250.408 May I use alternative proce-

dures or equipment during drilling
§ 250.404 What are the requirements operations?
for the crown block?
You may use alternative procedures
You must have a crown block safety or equipment during drilling oper-
device that prevents the traveling ations after receiving approval from
block from striking the crown block. the District Manager. You must iden-
You must check the device for proper tify and discuss your proposed alter-
operation at least once per week and native procedures or equipment in your
after each drill-line slipping operation Application for Permit to Drill (APD)
and record the results of this oper- (Form BSEE–0123) (see § 250.414(h)).
ational check in the driller’s report. Procedures for obtaining approval are
described in § 250.141 of this part.
§ 250.405 What are the safety require-
ments for diesel engines used on a § 250.409 May I obtain departures from
drilling rig? these drilling requirements?
You must equip each diesel engine The District Manager may approve
with an air intake device to shut down departures from the drilling require-
the diesel engine in the event of a run- ments specified in this subpart. You
away. may apply for a departure from drilling
(a) For a diesel engine that is not requirements by writing to the District
continuously manned, you must equip Manager. You should identify and dis-
the engine with an automatic shut- cuss the departure you are requesting
down device; in your APD (see § 250.414(h)).
(b) For a diesel engine that is con-
tinuously manned, you may equip the APPLYING FOR A PERMIT TO DRILL
engine with either an automatic or re-
mote manual air intake shutdown de- § 250.410 How do I obtain approval to
vice; drill a well?
(c) You do not have to equip a diesel You must obtain written approval
engine with an air intake device if it from the District Manager before you
meets one of the following criteria: begin drilling any well or before you
(1) Starts a larger engine; sidetrack, bypass, or deepen a well. To
(2) Powers a firewater pump; obtain approval, you must:
(3) Powers an emergency generator; (a) Submit the information required
(4) Powers a BOP accumulator sys- by §§ 250.411 through 250.418;
tem; (b) Include the well in your approved
(5) Provides air supply to divers or Exploration Plan (EP), Development
confined entry personnel; and Production Plan (DPP), or Devel-
(6) Powers temporary equipment on a opment Operations Coordination Docu-
nonproducing platform; ment (DOCD);
(7) Powers an escape capsule; or (c) Meet the oil spill financial respon-
(8) Powers a portable single-cylinder sibility requirements for offshore fa-
rig washer. cilities as required by 30 CFR part 553;
and
FR 36149, June 6, 2016]
(d) Submit the following to the Dis-
trict Manager:
§ 250.406 [Reserved] (1) An original and two complete cop-
ies of Form BSEE–0123, Application for
§ 250.407 What tests must I conduct to Permit to Drill (APD), and Form
determine reservoir characteris- BSEE–0123S, Supplemental APD Infor-
tics? mation Sheet;
You must determine the presence, (2) A separate public information
quantity, quality, and reservoir char- copy of forms BSEE–0123 and BSEE–
acteristics of oil, gas, sulphur, and 0123S that meets the requirements of
water in the formations penetrated by § 250.186; and

logging, formation sampling, or well (3) Payment of the service fee listed
testing. in § 250.125.
94
§ 250.411 What information must I sub- formation required in this subpart and
mit with my application? subpart G of this part, including the
In addition to forms BSEE–0123 and following:
BSEE–0123S, you must include the in-
Information that you must include with an APD Where to find a description
(a) Plat that shows locations of the proposed well, ............................................ § 250.412.
(b) Design criteria used for the proposed well, ................................................... § 250.413.
(c) Drilling prognosis, ........................................................................................... § 250.414.
(d) Casing and cementing programs, .................................................................. § 250.415.
(e) Diverter systems descriptions, ....................................................................... § 250.416.
(f) BOP system descriptions, ............................................................................... § 250.731.
(g) Requirements for using a MODU, and .......................................................... § 250.713.
(h) Additional information. ................................................................................... § 250.418.
[81 FR 26017, Apr. 29, 2016] pressures that you reasonably expect
to be exerted upon a casing string and
§ 250.412 What requirements must the its related wellhead equipment. In cal-
location plat meet? culating maximum anticipated surface
The location plat must: pressures, you must consider: drilling,
(a) Have a scale of 1:24,000 (1 inch = completion, and producing conditions;
2,000 feet); drilling fluid densities to be used below
(b) Show the surface and subsurface various casing strings; fracture gra-
locations of the proposed well and all dients of the exposed formations; cas-
the wells in the vicinity; ing setting depths; total well depth;
(c) Show the surface and subsurface formation fluid types; safety margins;
locations of the proposed well in feet or and other pertinent conditions. You
meters from the block line; must include the calculations used to
(d) Contain the longitude and lati- determine the pressures for the drilling
tude coordinates, and either Universal and the completion phases, including
Transverse Mercator grid-system co- the anticipated surface pressure used
ordinates or state plane coordinates in for designing the production string;
the Lambert or Transverse Mercator (g) A single plot containing curves
Projection system for the surface and for estimated pore pressures, formation
subsurface locations of the proposed fracture gradients, proposed drilling
well; and fluid weights, planned safe drilling
(e) State the units and geodetic margin, and casing setting depths in
datum (including whether the datum is true vertical measurements;
North American Datum 27 or 83) for (h) A summary report of the shallow
these coordinates. If the datum was hazards site survey that describes the
converted, you must state the method geological and manmade conditions if
used for this conversion, since the var- not previously submitted; and
ious methods may produce different (i) Permafrost zones, if applicable.
values. [76 FR 64462, Oct. 18, 2011, as amended at 81
FR 26017, Apr. 29, 2016]
§ 250.413 What must my description of
well drilling design criteria ad- § 250.414 What must my drilling prog-
dress? nosis include?
Your description of well drilling de- Your drilling prognosis must include
sign criteria must address: a brief description of the procedures
(a) Pore pressures; you will follow in drilling the well.
(b) Formation fracture gradients, ad- This prognosis includes but is not lim-
justed for water depth; ited to the following:
(c) Potential lost circulation zones; (a) Projected plans for coring at spec-
(d) Drilling fluid weights; ified depths;
(e) Casing setting depths; (b) Projected plans for logging;
(f) Maximum anticipated surface (c) Planned safe drilling margin that
pressures. For this section, maximum is between the estimated pore pressure
anticipated surface pressures are the and the lesser of estimated fracture
95
§ 250.415 30 CFR Ch. II (7–1–18 Edition)
gradients or casing shoe pressure integ- to clarify or evaluate your drilling

rity test and that is based on a risk as- prognosis.
sessment consistent with expected well
conditions and operations. FR 26017, Apr. 29, 2016]
(1) Your safe drilling margin must
also include use of equivalent downhole § 250.415 What must my casing and ce-
mud weight that is: menting programs include?
(i) Greater than the estimated pore Your casing and cementing programs
pressure; and must include:
(ii) Except as provided in paragraph (a) The following well design infor-
(c)(2) of this section, a minimum of 0.5 mation:
pound per gallon below the lower of the (1) Hole sizes;
casing shoe pressure integrity test or (2) Bit depths (including measured
the lowest estimated fracture gradient. and true vertical depth (TVD));
(2) In lieu of meeting the criteria in (3) Casing information, including
paragraph (c)(1)(ii) of this section, you sizes, weights, grades, collapse and
may use an equivalent downhole mud burst values, types of connection, and
weight as specified in your APD, pro- setting depths (measured and TVD) for
vided that you submit adequate docu- all sections of each casing interval; and
mentation (such as risk modeling data, (4) Locations of any installed rupture
off-set well data, analog data, seismic disks (indicate if burst or collapse and
data) to justify the alternative equiva- rating);
lent downhole mud weight. (b) Casing design safety factors for
(3) When determining the pore pres- tension, collapse, and burst with the
sure and lowest estimated fracture gra- assumptions made to arrive at these
dient for a specific interval, you must values;
consider related off-set well behavior (c) Type and amount of cement (in
observations. cubic feet) planned for each casing
(d) Estimated depths to the top of string;
significant marker formations; (d) In areas containing permafrost,
(e) Estimated depths to significant setting depths for conductor and sur-
porous and permeable zones containing face casing based on the anticipated
fresh water, oil, gas, or abnormally depth of the permafrost. Your program
pressured formation fluids; must provide protection from thaw
(f) Estimated depths to major faults; subsidence and freezeback effect, prop-
(g) Estimated depths of permafrost, if er anchorage, and well control;
applicable; (e) A statement of how you evaluated
(h) A list and description of all re- the best practices included in API RP
65, Recommended Practice for Cement-
quests for using alternate procedures
ing Shallow Water Flow Zones in Deep
or departures from the requirements of
Water Wells (as incorporated by ref-
this subpart in one place in the APD.
erence in § 250.198), if you drill a well in
You must explain how the alternate
water depths greater than 500 feet and
procedures afford an equal or greater are in either of the following two areas:
degree of protection, safety, or per-
(1) An ‘‘area with an unknown shal-
formance, or why the departures are low water flow potential’’ is a zone or
requested; geologic formation where neither the
(i) Projected plans for well testing presence nor absence of potential for a
(refer to § 250.460); shallow water flow has been confirmed.
(j) The type of wellhead system and (2) An ‘‘area known to contain a shal-
liner hanger system to be installed and low water flow hazard’’ is a zone or
a descriptive schematic, which includes geologic formation for which drilling
but is not limited to pressure ratings, has confirmed the presence of shallow
dimensions, valves, load shoulders, and water flow; and
locking mechanisms, if applicable; and (f) A written description of how you

(k) Any additional information reevaluated the best practices included
quired by the District Manager needed in API Standard 65—Part 2, Isolating
96
Potential Flow Zones During Well Con- suitable for operating under such con-
struction, Second Edition (as incor- ditions;
porated by reference in § 250.198). Your (g) A request for approval, if you plan
written description must identify the to wash out or displace cement to fa-
mechanical barriers and cementing cilitate casing removal upon well aban-
practices you will use for each casing donment. Your request must include a
string (reference API Standard 65— description of how far below the
Part 2, Sections 4 and 5). mudline you propose to displace ce-
[76 FR 64462, Oct. 18, 2011, as amended at 77 ment and how you will visually mon-
FR 50891, Aug. 22, 2012; 81 FR 26018, Apr. 29, itor returns;
2016] (h) Certification of your casing and
cementing program as required in
§ 250.416 What must I include in the § 250.420(a)(7); and
diverter description?
(i) Such other information as the Dis-
You must include in the diverter de- trict Manager may require.
scription: (j) For Arctic OCS exploratory drill-
(a) A description of the diverter sys- ing operations, you must provide the
tem and its operating procedures; information required by § 250.470.
(b) A schematic drawing of the di-
verter system (plan and elevation [76 FR 64462, Oct. 18, 2011, as amended at 77
views) that shows: FR 50892, Aug. 22, 2012; 81 FR 26018, Apr. 29,
2016; 81 FR 46561, July 15, 2016]
(1) The size of the element installed
in the diverter housing; CASING AND CEMENTING REQUIREMENTS
(2) Spool outlet internal diameter(s);
(3) Diverter-line lengths and diame- § 250.420 What well casing and cement-
ters; burst strengths and radius of cur- ing requirements must I meet?
vature at each turn; and
You must case and cement all wells.
(4) Valve type, size, working pressure
Your casing and cementing programs
rating, and location.
must meet the applicable requirements
[81 FR 26018, Apr. 29, 2016] of this subpart and of subpart G of this
part.
§ 250.417 [Reserved] (a) Casing and cementing program re-
§ 250.418 What additional information quirements. Your casing and cementing
must I submit with my APD? programs must:
(1) Properly control formation pres-
You must include the following with sures and fluids;
the APD:
(2) Prevent the direct or indirect re-
(a) Rated capacities of the drilling
lease of fluids from any stratum
rig and major drilling equipment, if not
through the wellbore into offshore
already on file with the appropriate
waters;
District office;
(b) A drilling fluids program that in- (3) Prevent communication between
cludes the minimum quantities of drill- separate hydrocarbon-bearing strata;
ing fluids and drilling fluid materials, (4) Protect freshwater aquifers from
including weight materials, to be kept contamination;
at the site; (5) Support unconsolidated sedi-
(c) A proposed directional plot if the ments;
well is to be directionally drilled; (6) Provide adequate centralization
(d) A Hydrogen Sulfide Contingency to ensure proper cementation; and
Plan (see § 250.490), if applicable, and (7)(i) Include a certification signed by
not previously submitted; a registered professional engineer that
(e) A welding plan (see §§ 250.109 to the casing and cementing design is ap-
250.113) if not previously submitted; propriate for the purpose for which it is
(f) In areas subject to subfreezing intended under expected wellbore con-
conditions, evidence that the drilling ditions, and is sufficient to satisfy the
equipment, BOP systems and compo- tests and requirements of this section
nents, diverter systems, and other as- and § 250.423. Submit this certification
sociated equipment and materials are with your APD (Form BSEE–0123).
97
§ 250.421 30 CFR Ch. II (7–1–18 Edition)
(ii) You must have the registered pro- than what was approved in your APD,
fessional engineer involved in the cas- you must contact the District Manager
ing and cementing design process. for approval prior to installing the cas-
(iii) The registered professional engi- ing.
neer must be registered in a state of (c) Cementing requirements. (1) You
the United States and have sufficient must design and conduct your cement-
expertise and experience to perform ing jobs so that cement composition,
the certification. placement techniques, and waiting
(b) Casing requirements. (1) You must times ensure that the cement placed
design casing (including liners) to
behind the bottom 500 feet of casing at-
withstand the anticipated stresses im-
tains a minimum compressive strength
posed by tensile, compressive, and
buckling loads; burst and collapse pres- of 500 psi before drilling out the casing
sures; thermal effects; and combina- or before commencing completion oper-
tions thereof. ations. (If a liner is used refer to
(2) The casing design must include § 250.421(f)).
safety measures that ensure well con- (2) You must use a weighted fluid
trol during drilling and safe operations during displacement to maintain an
during the life of the well. overbalanced hydrostatic pressure dur-
(3) On all wells that use subsea BOP ing the cement setting time, except
stacks, you must include two inde- when cementing casings or liners in
pendent barriers, including one me- riserless hole sections.
chanical barrier, in each annular flow
path (examples of barriers include, but
FR 50892, Aug. 22, 2012; 81 FR 26018, Apr. 29,
are not limited to, primary cement job
2016]
and seal assembly). For the final casing
string (or liner if it is your final § 250.421 What are the casing and ce-
string), you must install one mechan- menting requirements by type of
ical barrier in addition to cement to casing string?
prevent flow in the event of a failure in
the cement. A dual float valve, by The table in this section identifies
itself, is not considered a mechanical specific design, setting, and cementing
barrier. These barriers cannot be modi- requirements for casing strings and lin-
fied prior to or during completion or ers. For the purposes of subpart D, the
abandonment operations. The BSEE casing strings in order of normal in-
District Manager may approve alter- stallation are as follows: drive or struc-
native options under § 250.141. You must tural, conductor, surface, intermediate,
submit documentation of this installa- and production casings (including lin-
tion to BSEE in the End-of-Operations ers). The District Manager may ap-
Report (Form BSEE–0125). prove or prescribe other casing and ce-
(4) If you need to substitute a dif- menting requirements where appro-
ferent size, grade, or weight of casing priate.
Casing type Casing requirements Cementing requirements
(a) Drive or Structural ..... Set by driving, jetting, or drilling to the minimum If you drilled a portion of this hole, you must use
depth as approved or prescribed by the Dis- enough cement to fill the annular space back
trict Manager. to the mudline.
(b) Conductor .................. Design casing and select setting depths based Use enough cement to fill the calculated annular
on relevant engineering and geologic factors. space back to the mudline.
These factors include the presence or ab- Verify annular fill by observing cement returns. If
sence of hydrocarbons, potential hazards, and you cannot observe cement returns, use addi-
water depths. tional cement to ensure fill-back to the
Set casing immediately before drilling into forma- mudline.
tions known to contain oil or gas. If you en- For drilling on an artificial island or when using a
counter oil or gas or unexpected formation well cellar, you must discuss the cement fill
pressure before the planned casing point, you level with the District Manager.
must set casing immediately and set it above
the encountered zone.
98
Casing type Casing requirements Cementing requirements
(c) Surface ....................... Design casing and select setting depths based Use enough cement to fill the calculated annular
on relevant engineering and geologic factors. space to at least 200 feet inside the conductor
These factors include the presence or ab- casing.
sence of hydrocarbons, potential hazards, and When geologic conditions such as near-surface
water depths. fractures and faulting exist, you must use
enough cement to fill the calculated annular
space to the mudline.
(d) Intermediate ............... Design casing and select setting depth based on Use enough cement to cover and isolate all hy-
anticipated or encountered geologic character- drocarbon-bearing zones and isolate abnormal
istics or wellbore conditions. pressure intervals from normal pressure inter-
vals in the well.
As a minimum, you must cement the annular
space 500 feet above the casing shoe and
500 feet above each zone to be isolated.
(e) Production .................. Design casing and select setting depth based on Use enough cement to cover or isolate all hydro-
anticipated or encountered geologic character- carbon-bearing zones above the shoe.
istics or wellbore conditions. As a minimum, you must cement the annular
space at least 500 feet above the casing shoe
and 500 feet above the uppermost hydro-
carbon-bearing zone.
(f) Liners .......................... If you use a liner as surface casing, you must Same as cementing requirements for specific
set the top of the liner at least 200 feet above casing types. For example, a liner used as in-
the previous casing/liner shoe. termediate casing must be cemented accord-
If you use a liner as an intermediate string below ing to the cementing requirements for inter-
a surface string or production casing below an mediate casing. If you have a liner lap and are
intermediate string, you must set the top of the unable to cement 500 feet above the previous
liner at least 100 feet above the previous cas- shoe, as provided by paragraphs (d) and (e) of
ing shoe. this section, you must submit and receive ap-
You may not use a liner as conductor casing ..... proval from the District Manager on a case-by-
A subsea well casing string whose top is above case basis.
the mudline and that has been cemented back
to the mudline will not be considered a liner.
[76 FR 64462, Oct. 18, 2011, as amended at 81 § 250.423 What are the requirements
FR 26018, Apr. 29, 2016] for casing and liner installation?
§ 250.422 When may I resume drilling You must ensure proper installation
after cementing? of casing in the subsea wellhead or
liner in the liner hanger.
(a) After cementing surface, inter- (a) You must ensure that the latch-
mediate, or production casing (or lining mechanisms or lock down mecha-
ers), you may resume drilling after the nisms are engaged upon successfully
cement has been held under pressure installing and cementing the casing
for 12 hours. For conductor casing, you string. If there is an indication of an
may resume drilling after the cement inadequate cement job, you must com-
has been held under pressure for 8 ply with § 250.428(c).
hours. One acceptable method of hold- (b) If you run a liner that has a latch-
ing cement under pressure is to use ing mechanism or lock down mecha-
float valves to hold the cement in nism, you must ensure that the latch-
place. ing mechanisms or lock down mecha-
nisms are engaged upon successfully
(b) If you plan to nipple down your
installing and cementing the liner. If
diverter or BOP stack during the 8- or
there is an indication of an inadequate
12-hour waiting time, you must deter- cement job, you must comply with
mine, before nippling down, when it § 250.428(c).
will be safe to do so. You must base (c) You must perform a pressure test
your determination on a knowledge of on the casing seal assembly to ensure
formation conditions, cement composi- proper installation of casing or liner.
tion, effects of nippling down, presence You must perform this test for the in-
of potential drilling hazards, well con- termediate and production casing
ditions during drilling, cementing, and strings or liners.
post cementing, as well as past experi- (1) You must submit for approval
ence. with your APD, test procedures and
criteria for a successful test.
99
§§ 250.424–250.426 30 CFR Ch. II (7–1–18 Edition)
(2) You must document all your test (a) You must use the pressure integ-
results and make them available to rity test and related hole-behavior ob-
BSEE upon request. servations, such as pore-pressure test
results, gas-cut drilling fluid, and well
[81 FR 26019, Apr. 29, 2016] kicks to adjust the drilling fluid pro-
gram and the setting depth of the next
§§ 250.424–250.426 [Reserved]
casing string. You must record all test
§ 250.427 What are the requirements results and hole-behavior observations
for pressure integrity tests? made during the course of drilling re-
lated to formation integrity and pore
You must conduct a pressure integ- pressure in the driller’s report.
rity test below the surface casing or (b) While drilling, you must maintain
liner and all intermediate casings or the safe drilling margins identified in
liners. The District Manager may re- § 250.414. When you cannot maintain
quire you to run a pressure-integrity the safe margins, you must suspend
test at the conductor casing shoe if drilling operations and remedy the sit-
warranted by local geologic conditions uation.
or the planned casing setting depth. [76 FR 64462, Oct. 18, 2011, as amended at 81
You must conduct each pressure integ- FR 26019, Apr. 29, 2016]
rity test after drilling at least 10 feet
but no more than 50 feet of new hole § 250.428 What must I do in certain ce-
below the casing shoe. You must test menting and casing situations?
to either the formation leak-off pres- The table in this section describes ac-
sure or to an equivalent drilling fluid tions that lessees must take when cer-
weight if identified in an approved tain situations occur during casing and
APD. cementing activities.
If you encounter the following situation: Then you must . . .
(a) Have unexpected formation pressures or conditions that Submit a revised casing program to the District Manager for
warrant revising your casing design, approval.
(b) Need to change casing setting depths or hole interval drill- Submit those changes to the District Manager for approval and
ing depth (for a BHA with an under-reamer, this means bit include a certification by a professional engineer (PE) that
depth) more than 100 feet true vertical depth (TVD) from the he or she reviewed and approved the proposed changes.
approved APD due to conditions encountered during drilling
operations,
(c) Have indication of inadequate cement job (such as lost re- (1) Locate the top of cement by:
turns, no cement returns to mudline or expected height, ce- (i) Running a temperature survey;
ment channeling, or failure of equipment), (ii) Running a cement evaluation log; or
(iii) Using a combination of these techniques.
(2) Determine if your cement job is inadequate. If your cement
job is determined to be inadequate, refer to paragraph (d) of
this section.
(3) If your cement job is determined to be adequate, report the
results to the District Manager in your submitted WAR.
(d) Inadequate cement job, Take remedial actions. The District Manager must review and
approve all remedial actions before you may take them, un-
less immediate actions must be taken to ensure the safety of
the crew or to prevent a well-control event. If you complete
any immediate action to ensure the safety of the crew or to
prevent a well-control event, submit a description of the ac-
tion to the District Manager when that action is complete.
Any changes to the well program will require submittal of a
certification by a professional engineer (PE) certifying that he
or she reviewed and approved the proposed changes, and
must meet any other requirements of the District Manager.
(e) Primary cement job that did not isolate abnormal pressure Isolate those intervals from normal pressures by squeeze ce-
intervals, menting before you complete; suspend operations; or aban-
don the well, whichever occurs first.
(f) Decide to produce a well that was not originally con- Have at least two cemented casing strings (does not include
templated for production, liners) in the well. Note: All producing wells must have at
least two cemented casing strings.
(g) Want to drill a well without setting conductor casing, Submit geologic data and information to the District Manager
that demonstrates the absence of shallow hydrocarbons or

hazards. This information must include logging and drilling
fluid-monitoring from wells previously drilled within 500 feet
of the proposed well path down to the next casing point.
100
(h) Need to use less than required cement for the surface cas- Submit information to the District Manager that demonstrates
ing during floating drilling operations to provide protection the use of less cement is necessary.
from burst and collapse pressures,
(i) Cement across a permafrost zone, Use cement that sets before it freezes and has a low heat of
hydration.
(j) Leave the annulus opposite a permafrost zone uncemented, Fill the annulus with a liquid that has a freezing point below the
minimum permafrost temperature and minimizes opposite a
corrosion.
(k) Plan to use a valve(s) on the drive pipe during cementing Include a description of the plan in your APD. Your description
operations for the conductor casing, surface casing, or liner, must include a schematic of the valve and height above the
water line. The valve must be remotely operated and full
opening with visual observation while taking returns. The
person in charge of observing returns must be in commu-
nication with the drill floor. You must record in your daily re-
port and in the WAR if cement returns were observed. If ce-
ment returns are not observed, you must contact the District
Manager and obtain approval of proposed plans to locate
the top of cement before continuing with operations.
[76 FR 64462, Oct. 18, 2011, as amended at 77 FR 50892, Aug. 22, 2012; 81 FR 26019, Apr. 29, 2016]
DIVERTER SYSTEM REQUIREMENTS (d) Use only remote-controlled valves

in the diverter lines. All valves in the
§ 250.430 When must I install a di- diverter system must be full-opening.
verter system?
You may not install manual or but-
You must install a diverter system terfly valves in any part of the diverter
before you drill a conductor or surface system;
hole. The diverter system consists of a (e) Minimize the number of turns
diverter sealing element, diverter
(only one 90-degree turn allowed for
lines, and control systems. You must
each line for bottom-founded drilling
design, install, use, maintain, and test
the diverter system to ensure proper units) in the diverter lines, maximize
diversion of gases, water, drilling fluid, the radius of curvature of turns, and
and other materials away from facili- target all right angles and sharp turns;
ties and personnel. (f) Anchor and support the entire di-
verter system to prevent whipping and
§ 250.431 What are the diverter design vibration; and
and installation requirements? (g) Protect all diverter-control in-
You must design and install your di- struments and lines from possible dam-
verter system to: age by thrown or falling objects.
(a) Use diverter spool outlets and di-
verter lines that have a nominal di- § 250.432 How do I obtain a departure
ameter of at least 10 inches for surface to diverter design and installation
wellhead configurations and at least 12 requirements?
inches for floating drilling operations; The table below describes possible de-
(b) Use dual diverter lines arranged partures from the diverter require-
to provide for downwind diversion ca-
ments and the conditions required for
pability;
each departure. To obtain one of these
(c) Use at least two diverter control
stations. One station must be on the departures, you must have discussed
drilling floor. The other station must the departure in your APD and re-
be in a readily accessible location away ceived approval from the District Man-
from the drilling floor; ager.
If you want a departure to: Then you must . . .
(a) Use flexible hose for diverter lines instead of rigid pipe, Use flexible hose that has integral end couplings.
(b) Use only one spool outlet for your diverter system, (1) Have branch lines that meet the minimum internal diameter
requirements; and (2) Provide downwind diversion capability.

(c) Use a spool with an outlet with an internal diameter of less Use a spool that has dual outlets with an internal diameter of
than 10 inches on a surface wellhead, at least 8 inches.
101
§ 250.433 30 CFR Ch. II (7–1–18 Edition)
If you want a departure to: Then you must . . .
(d) Use a single diverter line for floating drilling operations on a Maintain an appropriate vessel heading to provide for down-
dynamically positioned drillship, wind diversion.
§ 250.433 What are the diverter actu- §§ 250.440—250.451 [Reserved]

ation and testing requirements?
§ 250.452 What are the real-time moni-
When you install the diverter sys- toring requirements for Arctic OCS
tem, you must actuate the diverter exploratory drilling operations?
sealing element, diverter valves, and
(a) When conducting exploratory
diverter-control systems and control drilling operations on the Arctic OCS,
stations. You must also flow-test the you must gather and monitor real-time
vent lines. data using an independent, automatic,
(a) For drilling operations with a sur- and continuous monitoring system ca-
face wellhead configuration, you must pable of recording, storing, and trans-
actuate the diverter system at least mitting data regarding the following:
once every 24-hour period after the ini- (1) The BOP control system;
tial test. After you have nippled up on (2) The well’s fluid handling systems
conductor casing, you must pressure- on the rig; and
test the diverter-sealing element and (3) The well’s downhole conditions as
diverter valves to a minimum of 200 monitored by a downhole sensing sys-
psi. While the diverter is installed, you tem, when such a system is installed.
must conduct subsequent pressure (b) During well operations, you must
tests within 7 days after the previous transmit the data identified in para-
test. graph (a) of this section as they are
(b) For floating drilling operations gathered, barring unforeseeable or un-
with a subsea BOP stack, you must ac- preventable interruptions in trans-
tuate the diverter system within 7 days mission, and have the capability to
after the previous actuation. monitor the data onshore, using quali-
fied personnel. Onshore personnel who
(c) You must alternate actuations
monitor real-time data must have the
and tests between control stations. capability to contact rig personnel dur-
§ 250.434 What are the recordkeeping ing operations. After well operations,
requirements for diverter actu- you must store the data at a des-
ations and tests? ignated location for recordkeeping pur-
poses as required in §§ 250.740 and
You must record the time, date, and 250.741. You must provide BSEE with
results of all diverter actuations and access to your real-time monitoring
tests in the driller’s report. In addi- data onshore upon request.
tion, you must:
[81 FR 46561, July 15, 2016]
(a) Record the diverter pressure test
on a pressure chart; DRILLING FLUID REQUIREMENTS
(b) Require your onsite representa-
tive to sign and date the pressure test § 250.455 What are the general require-
chart; ments for a drilling fluid program?
(c) Identify the control station used You must design and implement your
during the test or actuation; drilling fluid program to prevent the
(d) Identify problems or irregular- loss of well control. This program must
ities observed during the testing or ac- address drilling fluid safe practices,
tuations and record actions taken to testing and monitoring equipment,
remedy the problems or irregularities; drilling fluid quantities, and drilling
and fluid-handling areas.
(e) Retain all pressure charts and re- § 250.456 What safe practices must the
ports pertaining to the diverter tests drilling fluid program follow?

and actuations at the facility for the
Your drilling fluid program must in-
duration of drilling the well.
clude the following safe practices:
102
(a) Before starting out of the hole District Manager). As a minimum, you
with drill pipe, you must properly con- must post the following two pressures:
dition the drilling fluid. You must cir- (1) The surface pressure at which the
culate a volume of drilling fluid equal shoe would break down. This calcula-
to the annular volume with the drill tion must consider the current drilling
pipe just off-bottom. You may omit fluid weight in the hole; and
this practice if documentation in the (2) The lesser of the BOP’s rated
driller’s report shows: working pressure or 70 percent of cas-
(1) No indication of formation fluid ing-burst pressure (or casing test oth-
influx before starting to pull the drill erwise approved by the District Man-
pipe from the hole; ager);
(2) The weight of returning drilling (g) You must install an operable
fluid is within 0.2 pounds per gallon (1.5 drilling fluid-gas separator and
pounds per cubic foot) of the drilling degasser before you begin drilling oper-
fluid entering the hole; and ations. You must maintain this equip-
(3) Other drilling fluid properties are ment throughout the drilling of the
within the limits established by the well;
program approved in the APD. (h) Before pulling drill-stem test
(b) Record each time you circulate tools from the hole, you must circulate
drilling fluid in the hole in the driller’s or reverse-circulate the test fluids in
report; the hole. If circulating out test fluids
(c) When coming out of the hole with is not feasible, you may bullhead test
drill pipe, you must fill the annulus fluids out of the drill-stem test string
with drilling fluid before the hydro- and tools with an appropriate kill
static pressure decreases by 75 psi, or weight fluid;
every five stands of drill pipe, which- (i) When circulating, you must test
ever gives a lower decrease in hydro- the drilling fluid at least once each
static pressure. You must calculate the tour, or more frequently if conditions
number of stands of drill pipe and drill warrant. Your tests must conform to
collars that you may pull before you industry-accepted practices and in-
must fill the hole. You must also cal- clude density, viscosity, and gel
culate the equivalent drilling fluid vol- strength; hydrogenion concentration;
ume needed to fill the hole. Both sets filtration; and any other tests the Dis-
of numbers must be posted near the trict Manager requires for monitoring
driller’s station. You must use a me- and maintaining drilling fluid quality,
chanical, volumetric, or electronic de- prevention of downhole equipment
vice to measure the drilling fluid re- problems and for kick detection. You
quired to fill the hole; must record the results of these tests
(d) You must run and pull drill pipe in the drilling fluid report; and
and downhole tools at controlled rates (j) In areas where permafrost and/or
so you do not swab or surge the well; hydrate zones are present or may be
(e) When there is an indication of present, you must control drilling fluid
swabbing or influx of formation fluids, temperatures to drill safely through
you must take appropriate measures to those zones.
control the well. You must circulate [76 FR 64462, Oct. 18, 2011, as amended at 77
and condition the well, on or near-bot- FR 50894, Aug. 22, 2012; 81 FR 26020, Apr. 29,
tom, unless well or drilling-fluid condi- 2016]
tions prevent running the drill pipe
back to the bottom; § 250.457 What equipment is required
(f) You must calculate and post near to monitor drilling fluids?
the driller’s console the maximum Once you establish drilling fluid re-
pressures that you may safely contain turns, you must install and maintain
under a shut-in BOP for each casing the following drilling fluid-system
string. The pressures posted must con- monitoring equipment throughout sub-
sider the surface pressure at which the sequent drilling operations. This equip-
formation at the shoe would break ment must have the following indica-
down, the rated working pressure of tors on the rig floor:

the BOP stack, and 70 percent of casing (a) Pit level indicator to determine
burst (or casing test as approved by the drilling fluid-pit volume gains and
103
§ 250.458 30 CFR Ch. II (7–1–18 Edition)
losses. This indicator must include Zone 0, Zone 1, and Zone 2 (as incor-
both a visual and an audible warning porated by reference in § 250.198). In
device; areas where dangerous concentrations
(b) Volume measuring device to accu- of combustible gas may accumulate,
rately determine drilling fluid volumes you must install and maintain a ven-
required to fill the hole on trips; tilation system and gas monitors.
(c) Return indicator devices that in- Drilling fluid-handling areas must have
dicate the relationship between drill- the following safety equipment:
ing fluid-return flow rate and pump (a) A ventilation system capable of
discharge rate. This indicator must in- replacing the air once every 5 minutes
clude both a visual and an audible or 1.0 cubic feet of air-volume flow per
warning device; and minute, per square foot of area, which-
(d) Gas-detecting equipment to mon- ever is greater. In addition:
itor the drilling fluid returns. The indi- (1) If natural means provide adequate
cator may be located in the drilling ventilation, then a mechanical ventila-
fluid-logging compartment or on the tion system is not necessary;
rig floor. If the indicators are only in (2) If a mechanical system does not
the logging compartment, you must run continuously, then it must acti-
continually man the equipment and vate when gas detectors indicate the
have a means of immediate commu- presence of 1 percent or more of com-
nication with the rig floor. If the indi- bustible gas by volume; and
cators are on the rig floor only, you (3) If discharges from a mechanical
must install an audible alarm. ventilation system may be hazardous,
then you must maintain the drilling
§ 250.458 What quantities of drilling fluid-handling area at a negative pres-
fluids are required? sure. You must protect the negative
(a) You must use, maintain, and re- pressure area by using at least one of
plenish quantities of drilling fluid and the following: a pressure-sensitive
drilling fluid materials at the drill site alarm, open-door alarms on each access
as necessary to ensure well control. to the area, automatic door-closing de-
You must determine those quantities vices, air locks, or other devices ap-
based on known or anticipated drilling proved by the District Manager;
conditions, rig storage capacity, (b) Gas detectors and alarms except
weather conditions, and estimated in open areas where adequate ventila-
time for delivery. tion is provided by natural means. You
(b) You must record the daily inven- must test and recalibrate gas detectors
tories of drilling fluid and drilling fluid quarterly. No more than 90 days may
materials, including weight materials elapse between tests;
and additives in the drilling fluid re- (c) Explosion-proof or pressurized
port. electrical equipment to prevent the ig-
(c) If you do not have sufficient quan- nition of explosive gases. Where you
tities of drilling fluid and drilling fluid use air for pressuring equipment, you
material to maintain well control, you must locate the air intake outside of
must suspend drilling operations. and as far as practicable from haz-
ardous areas; and
§ 250.459 What are the safety require- (d) Alarms that activate when the
ments for drilling fluid-handling mechanical ventilation system fails.
areas?
You must classify drilling fluid-han- OTHER DRILLING REQUIREMENTS
dling areas according to API RP 500,
Recommended Practice for Classifica- § 250.460 What are the requirements
tion of Locations for Electrical Instal- for conducting a well test?
lations at Petroleum Facilities, Classi- (a) If you intend to conduct a well
fied as Class I, Division 1 and Division test, you must include your projected
2 (as incorporated by reference in plans for the test with your APD (form
§ 250.198); or API RP 505, Recommended BSEE–0123) or in an Application for
Practice for Classification of Locations Permit to Modify (APM) (form BSEE–

for Electrical Installations at Petro- 0124). Your plans must include at least
leum Facilities, Classified as Class 1, the following information:
104
(1) Estimated flowing and shut-in tom of the conductor casing to total
tubing pressures; depth. In the absence of conductor cas-
(2) Estimated flow rates and cumu- ing, the survey must show the interval
lative volumes; from the bottom of the drive or struc-
(3) Time duration of flow, buildup, tural casing to total depth; and
and drawdown periods; (2) You must correct all surveys to
(4) Description and rating of surface Universal-Transverse-Mercator-Grid-
and subsurface test equipment; north or Lambert-Grid-north after
(5) Schematic drawing, showing the making the magnetic-to-true-north
layout of test equipment; correction. Surveys must show the
(6) Description of safety equipment, magnetic and grid corrections used and
including gas detectors and fire-fight- include a listing of the directionally
ing equipment; computed inclinations and azimuths.
(7) Proposed methods to handle or (e) If you drill within 500 feet of an
transport produced fluids; and adjacent lease, the Regional Supervisor
(8) Description of the test procedures. may require you to furnish a copy of
(b) You must give the District Man- the well’s directional survey to the af-
ager at least 24-hours notice before fected leaseholder. This could occur
starting a well test. when the adjoining leaseholder re-
quests a copy of the survey for the pro-
§ 250.461 What are the requirements
for directional and inclination sur- tection of correlative rights.
veys?
§ 250.462 What are the source control,
For this subpart, BSEE classifies a containment, and collocated equip-
well as vertical if the calculated aver- ment requirements?
age of inclination readings does not ex-
For drilling operations using a
ceed 3 degrees from the vertical.
subsea BOP or surface BOP on a float-
(a) Survey requirements for a vertical
ing facility, you must have the ability
well. (1) You must conduct inclination
to control or contain a blowout event
surveys on each vertical well and
at the sea floor.
record the results. Survey intervals
may not exceed 1,000 feet during the (a) To determine your required
normal course of drilling; source control and containment capa-
(2) You must also conduct a direc- bilities you must do the following:
tional survey that provides both incli- (1) Consider a scenario of the
nation and azimuth, and digitally wellbore fully evacuated to reservoir
record the results in electronic format: fluids, with no restrictions in the well.
(i) Within 500 feet of setting surface (2) Evaluate the performance of the
or intermediate casing; well as designed to determine if a full
(ii) Within 500 feet of setting any shut-in can be achieved without having
liner; and reservoir fluids broach to the sea floor.
(iii) When you reach total depth. If your evaluation indicates that the
(b) Survey requirements for directional well can only be partially shut-in, then
well. You must conduct directional sur- you must determine your ability to
veys on each directional well and flow and capture the residual fluids to
digitally record the results. Surveys a surface production and storage sys-
must give both inclination and azi- tem.
muth at intervals not to exceed 500 feet (b) You must have access to and the
during the normal course of drilling. ability to deploy Source Control and
Intervals during angle-changing por- Containment Equipment (SCCE) and
tions of the hole may not exceed 100 all other necessary supporting and col-
feet. located equipment to regain control of
(c) Measurement while drilling. You the well. SCCE means the capping
may use measurement-while-drilling stack, cap-and-flow system, contain-
technology if it meets the requirement dome, and/or other subsea and
ments of this section. surface devices, equipment, and ves-
(d) Composite survey requirements. (1) sels, which have the collective purpose
Your composite directional survey to control a spill source and stop the
must show the interval from the bot- flow of fluids into the environment or
105
§ 250.463 30 CFR Ch. II (7–1–18 Edition)
to contain fluids escaping into the en- capabilities must contain the fol-
vironment. This SCCE, supporting lowing:
equipment, and collocated equipment (1) Your source control and contain-
must include, but is not limited to, the ment capabilities for controlling and
following: containing a blowout event at the
(1) Subsea containment and capture seafloor;
equipment, including containment (2) A discussion of the determination
domes and capping stacks; required in paragraph (a) of this sec-
(2) Subsea utility equipment includ- tion; and
ing hydraulic power sources and hy- (3) Information showing that you
drate control equipment; have access to and the ability to deploy
(3) Collocated equipment including all equipment required by paragraph
dispersant injection equipment; (b) of this section.
(4) Riser systems; (d) You must contact the District
(5) Remotely operated vehicles Manager and Regional Supervisor for
(ROVs); reevaluation of your source control and
(6) Capture vessels; containment capabilities if your:
(7) Support vessels; and (1) Well design changes; or
(8) Storage facilities. (2) Approved source control and con-
(c) You must submit a description of tainment equipment is out of service.
your source control and containment (e) You must maintain, test, and in-
capabilities to the Regional Supervisor spect the source control, containment,
and receive approval before BSEE will and collocated equipment identified in
approve your APD, Form BSEE–0123. the following table according to these
The description of your containment requirements:
Equipment Requirements, you must: Additional information
(1) Capping stacks, ......... (i) Function test all pressure containing critical Pressure containing critical components are
components on a quarterly frequency (not to those components that will experience
exceed 104 days between tests), wellbore pressure during a shut-in after being
functioned.
(ii) Pressure test pressure containing critical Pressure containing critical components are
components on a bi-annual basis, but not later those components that will experience
than 210 days from the last pressure test. All wellbore pressure during a shut-in. These
pressure testing must be witnessed by BSEE components include, but are not limited to: All
(if available) and a BSEE-approved verification blind rams, wellhead connectors, and outlet
organization. valves.
(iii) Notify BSEE at least 21 days prior to com-
mencing any pressure testing.
(2) Production safety sys- (i) Meet or exceed the requirements set forth in
tems used for flow and §§ 250.800 through 250.808, excluding re-
capture operations, quired equipment that would be installed
below the wellhead or that is not applicable to
the cap and flow system.
(ii) Have all equipment unique to containment
operations available for inspection at all times.
(3) Subsea utility equip- Have all referenced containment equipment Subsea utility equipment includes, but is not lim-
ment,. available for inspection at all times. ited to: Hydraulic power sources, debris re-
moval, and hydrate control equipment.
(4) Collocated equipment, Have equipment available for inspection at all Collocated equipment includes, but is not limited
times. to, dispersant injection equipment and other
subsea control equipment.
[81 FR 26020, Apr. 29, 2016] ply with field drilling rules and non-
conflicting requirements of this sub-
§ 250.463 Who establishes field drilling part. The District Manager may amend
rules?
or cancel field drilling rules at any
(a) The District Manager may estab- time.
lish field drilling rules different from (b) You may request the District
the requirements of this subpart when
Manager to establish, amend, or cancel

geological and engineering information
field drilling rules.
shows that specific operating require-
ments are appropriate. You must com-
106
APPLYING FOR A PERMIT TO MODIFY AND port (form BSEE–0125) and other mate-
WELL RECORDS rials to the Regional Supervisor as
shown in the following table. You must
§ 250.465 When must I submit an Ap- also submit a public information copy
plication for Permit to Modify
(APM) or an End of Operations Re- of each form.
port to BSEE?
(a) You must submit an APM (form
BSEE–0124) or an End of Operations Re-
When you . . . Then you must . . . And . . .
(1) Intend to revise your drilling Submit form BSEE–0124 or Receive written or oral approval from the District Manager
plan, change major drilling request oral approval, before you begin the intended operation. If you get an ap-
equipment, or plugback, proval, you must submit form BSEE–0124 no later than the
end of the 3rd business day following the oral approval. In
all cases, or you must meet the additional requirements in
paragraph (b) of this section.
(2) Determine a well’s final sur- Immediately Submit a form Submit a plat certified by a registered land surveyor that
face location, water depth, BSEE–0124, meets the requirements of § 250.412.
and the rotary kelly bushing
elevation,
(3) Move a drilling unit from a Submit forms BSEE–0124 and Submit appropriate copies of the well records.
wellbore before completing a BSEE–0125 within 30 days
well, after the suspension of
wellbore operations,
(b) If you intend to perform any of § 250.470 What additional information

the actions specified in paragraph (a)(1) must I submit with my APD for Arc-
of this section, you must meet the fol- tic OCS exploratory drilling oper-
lowing additional requirements: ations?
(1) Your APM (Form BSEE–0124) In addition to complying with all
must contain a detailed statement of other applicable requirements included
the proposed work that would materi- in this part, you must provide with
ally change from the approved APD. your APD all of the following informa-
The submission of your APM must be tion pertaining to your proposed Arctic
OCS exploratory drilling:
accompanied by payment of the service
(a) A detailed description of:
fee listed in § 250.125;
(1) The environmental, meteorolog-
(2) Your form BSEE–0124 must in- ical, and oceanic conditions you expect
clude the present status of the well, to encounter at the well site(s);
depth of all casing strings set to date, (2) How you will prepare your equip-
well depth, present production zones ment, materials, and drilling unit for
and productive capability, and all service in the conditions identified in
other information specified; and paragraph (a)(1) of this section, and
(3) Within 30 days after completing how your drilling unit will be in com-
this work, you must submit an End of pliance with the requirements of
Operations Report (EOR), Form BSEE– § 250.713.
0125, as required under § 250.744. (b) A detailed description of all oper-
ations necessary in Arctic OCS condi-
[76 FR 64462, Oct. 18, 2011, as amended at 81 tions to transition the rig from being
FR 26021, Apr. 29, 2016] under way to conducting drilling oper-
ations and from ending drilling oper-
§§ 250.466—250.469 [Reserved] ations to being under way, as well as
any anticipated repair and mainte-
ADDITIONAL ARCTIC OCS REQUIREMENTS
nance plans for the drilling unit and
equipment. You should include, among
SOURCE: 81 FR 46561, July 15, 2016, unless
other things, a description of how you
otherwise noted.
plan to:
(1) Recover the subsea equipment, in-

cluding the marine riser and the lower
marine riser package;
107
§ 250.470 30 CFR Ch. II (7–1–18 Edition)
(2) Recover the BOP; (3) Verification that you have the ca-
(3) Recover the auxiliary sub-sea con- pabilities described in your BOEM-ap-
trols and template; proved EP.
(4) Lay down the drill pipe and secure (e) A detailed description of how you
the drill pipe and marine riser; will comply with the requirements of
(5) Secure the drilling equipment; § 250.472.
(6) Transfer the fluids for transport (f) A statement that you own, or have
or disposal; a contract with a provider for, source
(7) Secure ancillary equipment like control and containment equipment
the draw works and lines; (SCCE), which is capable of controlling
(8) Refuel or transfer fuel; and/or containing a worst case dis-
(9) Offload waste; charge, as described in your BOEM-ap-
(10) Recover the Remotely Operated proved EP, when proposing to use a
Vehicles; MODU to conduct exploratory drilling
operations on the Arctic OCS. The fol-
(11) Pick up the oil spill prevention
lowing information must be included in
booms and equipment; and
your SCCE submittal:
(12) Offload the drilling crew.
(1) A detailed description of your or
(c) A description of well-specific
your contractor’s SCCE capability to
drilling objectives, timelines, and up-
stop or contain flow from an out-of-
dated contingency plans for temporary
control well, including your operating
abandonment of the well, including but
assumptions and limitations; your ac-
not limited to the following:
cess to and ability to deploy, in accord-
(1) When you will spud the particular ance with § 250.471, all necessary SCCE;
well (i.e., begin drilling operations at and your ability to evaluate the per-
the well site) identified in the APD; formance of the well design to deter-
(2) How long you will take to drill mine how you can achieve a full shut-
the well; in without having reservoir fluids dis-
(3) Anticipated depths and geologic charged into the environment;
targets, with timelines; (2) An inventory of the local and re-
(4) When you expect to set and ce- gional SCCE, supplies, and services
ment each string of casing; that you own or for which you have a
(5) When and how you would log the contract with a provider. You must
well; identify each supplier of such equip-
(6) Your plans to test the well; ment and services and provide their lo-
(7) When and how you intend to aban- cations and telephone numbers;
don the well, including specifically ad- (3) Where applicable, proof of con-
dressing your plans for how to move tracts or membership agreements with
the rig off location and how you will cooperatives, service providers, or
meet the requirements of § 250.720(c); other contractors who will provide you
(8) A description of what equipment with the necessary SCCE or related
and vessels will be involved in the proc- supplies and services if you do not pos-
ess of temporarily abandoning the well sess them. The contract or membership
due to ice; and agreement must include provisions for
(9) An explanation of how you will in- ensuring the availability of the per-
tegrate these elements into your over- sonnel and/or equipment on a 24-hour
all program. per day basis while you are drilling
(d) A detailed description of your below or working below the surface
weather and ice forecasting capability casing;
for all phases of the drilling operation, (4) A detailed description of the pro-
including: cedures you plan to use to inspect,
(1) How you will ensure your contin- test, and maintain your SCCE; and
uous awareness of potential weather (5) A detailed description of your
and ice hazards at, and during transi- plan to ensure that all members of
tion between, wells; your operating team, who are respon-
(2) Your plans for managing ice haz- sible for operating the SCCE, have re-
ards and responding to weather events; ceived the necessary training to deploy
and and operate such equipment in Arctic
108
OCS conditions and demonstrate ongo- well control and can be deployed as di-
ing proficiency in source control oper- rected by the Regional Supervisor pur-
ations. You must also identify and in- suant to paragraph (h) of this section.
clude the dates of prior and planned The cap and flow system must be de-
training. signed to capture at least the amount
(g) Where it does not conflict with of hydrocarbons equivalent to the cal-
other requirements of this subpart, and culated worst case discharge rate ref-
except as provided in paragraphs (g)(1) erenced in your BOEM-approved EP;
through (11) of this section, you must and
comply with the requirements of API (3) A containment dome, positioned
RP 2N, Third Edition ‘‘Planning, De- to ensure that it will arrive at the well
signing, and Constructing Structures location within 7 days after a loss of
and Pipelines for Arctic Conditions’’ well control and can be deployed as di-
(incorporated by reference as specified rected by the Regional Supervisor pur-
in § 250.198), and provide a detailed de- suant to paragraph (h) of this section.
scription of how you will utilize the The containment dome must have the
best practices included in API RP 2N capacity to pump fluids without rely-
during your exploratory drilling oper- ing on buoyancy.
ations. You are not required to incor- (b) You must conduct a monthly
porate the following sections of API stump test of dry-stored capping
RP 2N into your drilling operations: stacks. If you use a pre-positioned cap-
(1) Sections 6.6.3 through 6.6.4; ping stack, you must conduct a stump
(2) The foundation recommendations test prior to each installation on each
in Section 8.4; well.
(3) Section 9.6; (c) As required by § 250.465(a), if you
(4) The recommendations for perma- propose to change your well design,
nently moored systems in Section 9.7; you must submit an APM. For Arctic
(5) The recommendations for pile OCS operations, your APM must in-
foundations in Section 9.10; clude a reevaluation of your SCCE ca-
(6) Section 12; pabilities for any new Worst Case Dis-
(7) Section 13.2.1; charge (WCD) rate, and a demonstra-
(8) Sections 13.8.1.1, 13.8.2.1, 13.8.2.2, tion that your SCCE capabilities will
13.8.2.4 through 13.8.2.7; meet the criteria in § 250.470(f) under
(9) Sections 13.9.1, 13.9.2, 13.9.4 the changed well design.
through 13.9.8; (d) You must conduct tests or exer-
(10) Sections 14 through 16; and cises of your SCCE, including deploy-
(11) Section 18. ment of your SCCE, when directed by
the Regional Supervisor.
§ 250.471 What are the requirements (e) You must maintain records per-
for Arctic OCS source control and taining to testing, inspection, and
containment? maintenance of your SCCE for at least
You must meet the following require- 10 years and make the records avail-
ments for all exploration wells drilled able to any authorized BSEE represent-
on the Arctic OCS: ative upon request.
(a) If you use a MODU when drilling (f) You must maintain records per-
below or working below the surface taining to the use of your SCCE during
casing, you must have access to the testing, training, and deployment ac-
following SCCE capable of stopping or tivities for at least 3 years and make
capturing the flow of an out-of-control the records available to any authorized
well: BSEE representative upon request.
(1) A capping stack, positioned to en- (g) Upon a loss of well control, you
sure that it will arrive at the well loca- must initiate transit of all SCCE iden-
tion within 24 hours after a loss of well tified in paragraph (a) of this section to
control and can be deployed as directed the well.
by the Regional Supervisor pursuant to (h) You must deploy and use SCCE
paragraph (h) of this section; when directed by the Regional Super-
(2) A cap and flow system, positioned visor.

to ensure that it will arrive at the well (i) Operators may request approval of
location within 7 days after a loss of alternate procedures or equipment to
109
§ 250.472 30 CFR Ch. II (7–1–18 Edition)
the SCCE requirements of subpara- Arctic OCS, you must protect health,
graph (a) of this section in accordance safety, property, and the environment
with § 250.141. The operator must show by using the following:
and document that the alternate proce- (a) Equipment and materials that are
dures or equipment will provide a level rated or de-rated for service under con-
of safety and environmental protection ditions that can be reasonably expected
that will meet or exceed the level of during your operations; and
safety and environmental protection (b) Measures to address human fac-
required by BSEE regulations, includ- tors associated with weather condi-
ing demonstrating that the alternate tions that can be reasonably expected
procedures or equipment will be capa- during your operations including, but
ble of stopping or capturing the flow of not limited to, provision of proper at-
an out-of-control well. tire and equipment, construction of
protected work spaces, and manage-
§ 250.472 What are the relief rig re- ment of shifts.
quirements for the Arctic OCS?
(a) In the event of a loss of well con- HYDROGEN SULFIDE
trol, the Regional Supervisor may di-
§ 250.490 Hydrogen sulfide.
rect you to drill a relief well using the
relief rig able to kill and permanently (a) What precautions must I take when
plug an out-of-control well as described operating in an H2S area? You must:
in your APD. Your relief rig must com- (1) Take all necessary and feasible
ply with all other requirements of this precautions and measures to protect
part pertaining to drill rig characteris- personnel from the toxic effects of H2S
tics and capabilities, and it must be and to mitigate damage to property
able to drill a relief well under antici- and the environment caused by H2S.
pated Arctic OCS conditions. You must follow the requirements of
(b) When you are drilling below or this section when conducting drilling,
working below the surface casing dur- well-completion/well-workover, and
ing Arctic OCS exploratory drilling op- production operations in zones with
erations, you must have access to a re- H2S present and when conducting oper-
lief rig, different from your primary ations in zones where the presence of
drilling rig, staged in a location such H2S is unknown. You do not need to
that it can arrive on site, drill a relief follow these requirements when oper-
well, kill and abandon the original ating in zones where the absence of H2S
well, and abandon the relief well prior has been confirmed; and
to expected seasonal ice encroachment (2) Follow your approved contingency
at the drill site, but no later than 45 plan.
days after the loss of well control. (b) Definitions. Terms used in this
(c) Operators may request approval of section have the following meanings:
alternative compliance measures to Facility means a vessel, a structure,
the relief rig requirement in accord- or an artificial island used for drilling,
ance with § 250.141. The operator must well-completion, well-workover, and/or
show and document that the alternate production operations.
compliance measure will meet or ex- H2S absent means:
ceed the level of safety and environ- (1) Drilling, logging, coring, testing,
mental protection required by BSEE or producing operations have con-
regulations, including demonstrating firmed the absence of H2S in concentra-
that the alternate compliance measure tions that could potentially result in
will be able to kill and permanently atmospheric concentrations of 20 ppm
plug an out-of-control well. or more of H2S; or
(2) Drilling in the surrounding areas
§ 250.473 What must I do to protect and correlation of geological and seis-
health, safety, property, and mic data with equivalent stratigraphic
theenvironment while operating on units have confirmed an absence of H2S
the Arctic OCS? throughout the area to be drilled.
In addition to the requirements set H2S present means that drilling, log-
forth in § 250.107, when conducting ex- ging, coring, testing, or producing op-
ploratory drilling operations on the erations have confirmed the presence
110
of H2S in concentrations and volumes (1) Safety procedures and rules that
that could potentially result in atmos- you will follow concerning equipment,
pheric concentrations of 20 ppm or drills, and smoking;
more of H2S. (2) Training you provide for employ-
H2S unknown means the designation ees, contractors, and visitors;
of a zone or geologic formation where (3) Job position and title of the per-
neither the presence nor absence of H2S son responsible for the overall safety of
has been confirmed. personnel;
Well-control fluid means drilling mud (4) Other key positions, how these po-
and completion or workover fluid as sitions fit into your organization, and
what the functions, duties, and respon-
appropriate to the particular operation
sibilities of those job positions are;
being conducted.
(5) Actions that you will take when
(c) Classifying an area for the presence the concentration of H2S in the atmos-
of H2S. You must: phere reaches 20 ppm, who will be re-
(1) Request and obtain an approved sponsible for those actions, and a de-
classification for the area from the Re- scription of the audible and visual
gional Supervisor before you begin op- alarms to be activated;
erations. Classifications are ‘‘H2S ab- (6) Briefing areas where personnel
sent,’’ H2S present,’’ or ‘‘H2S un- will assemble during an H2S alert. You
known’’; must have at least two briefing areas
(2) Submit your request with your on each facility and use the briefing
application for permit to drill; area that is upwind of the H2S source
(3) Support your request with avail- at any given time;
able information such as geologic and (7) Criteria you will use to decide
geophysical data and correlations, well when to evacuate the facility and pro-
logs, formation tests, cores and anal- cedures you will use to safely evacuate
ysis of formation fluids; and all personnel from the facility by ves-
(4) Submit a request for reclassifica- sel, capsule, or lifeboat. If you use heli-
tion of a zone when additional data in- copters during H2S alerts, describe the
dicate a different classification is need- types of H2S emergencies during which
ed. you consider the risk of helicopter ac-
(d) What do I do if conditions change? tivity to be acceptable and the pre-
If you encounter H2S that could poten- cautions you will take during the
tially result in atmospheric concentra- flights;
tions of 20 ppm or more in areas not (8) Procedures you will use to safely
previously classified as having H2S position all vessels attendant to the fa-
present, you must immediately notify cility. Indicate where you will locate
BSEE and begin to follow requirements the vessels with respect to wind direc-
tion. Include the distance from the fa-
for areas with H2S present.
cility and what procedures you will use
(e) What are the requirements for con-
to safely relocate the vessels in an
ducting simultaneous operations? When emergency;
conducting any combination of drill- (9) How you will provide protective-
ing, well-completion, well-workover, breathing equipment for all personnel,
and production operations simulta- including contractors and visitors;
neously, you must follow the require- (10) The agencies and facilities you
ments in the section applicable to each will notify in case of a release of H2S
individual operation. (that constitutes an emergency), how
(f) Requirements for submitting an H2S you will notify them, and their tele-
Contingency Plan. Before you begin op- phone numbers. Include all facilities
erations, you must submit an H2S Con- that might be exposed to atmospheric
tingency Plan to the District Manager concentrations of 20 ppm or more of
for approval. Do not begin operations H2S;
before the District Manager approves (11) The medical personnel and facili-
your plan. You must keep a copy of the ties you will use if needed, their ad-
approved plan in the field, and you dresses, and telephone numbers;
must follow the plan at all times. Your (12) H2S detector locations in produc-
plan must include: tion facilities producing gas containing
111
§ 250.490 30 CFR Ch. II (7–1–18 Edition)
20 ppm or more of H2S. Include an ‘‘H2S (i) You must have documentation of
Detector Location Drawing’’ showing: this training at the facility where the
(i) All vessels, flare outlets, individual is employed; or
wellheads, and other equipment han- (ii) The employee must carry a train-
dling production containing H2S; ing completion card.
(ii) Approximate maximum con- (3) What training do I need to give to
centration of H2S in the gas stream; visitors and employees previously trained
and on another facility?
(iii) Location of all H2S sensors in- (i) Trained employees or contractors
cluded in your contingency plan; transferred from another facility must
(13) Operational conditions when you attend a supplemental briefing on your
expect to flare gas containing H2S in- H2S equipment and procedures before
cluding the estimated maximum gas beginning duty at your facility;
flow rate, H2S concentration, and dura- (ii) Visitors who will remain on your
tion of flaring; facility more than 24 hours must re-
(14) Your assessment of the risks to ceive the training required for employ-
personnel during flaring and what pre- ees by paragraph (g)(4) of this section;
cautionary measures you will take; and
(15) Primary and alternate methods (iii) Visitors who will depart before
to ignite the flare and procedures for spending 24 hours on the facility are
sustaining ignition and monitoring the exempt from the training required for
status of the flare (i.e., ignited or ex- employees, but they must, upon ar-
tinguished); rival, complete a briefing that in-
(16) Procedures to shut off the gas to cludes:
the flare in the event the flare is extin- (A) Information on the location and
guished; use of an assigned respirator; practice
(17) Portable or fixed sulphur dioxide in donning and adjusting the assigned
(SO2)-detection system(s) you will use respirator; information on the safe
to determine SO2 concentration and ex- briefing areas, alarm system, and haz-
posure hazard when H2S is burned; ards of H2S and SO2; and
(18) Increased monitoring and warn- (B) Instructions on their responsibil-
ing procedures you will take when the ities in the event of an H2S release.
SO2 concentration in the atmosphere (4) What training must I provide to all
reaches 2 ppm; other employees? You must train all in-
(19) Personnel protection measures or dividuals on your facility on the:
evacuation procedures you will initiate (i) Hazards of H2S and of SO2 and the
when the SO2 concentration in the at- provisions for personnel safety con-
mosphere reaches 5 ppm; tained in the H2S Contingency Plan;
(20) Engineering controls to protect (ii) Proper use of safety equipment
personnel from SO2; and which the employee may be required to
(21) Any special equipment, proce- use;
dures, or precautions you will use if (iii) Location of protective breathing
you conduct any combination of drill- equipment, H2S detectors and alarms,
ing, well-completion, well-workover, ventilation equipment, briefing areas,
and production operations simulta- warning systems, evacuation proce-
neously. dures, and the direction of prevailing
(g) Training program: (1) When and winds;
how often do employees need to be (iv) Restrictions and corrective
trained? All operators and contract per- measures concerning beards, spec-
sonnel must complete an H2S training tacles, and contact lenses in conform-
program to meet the requirements of ance with ANSI Z88.2, American Na-
this section: tional Standard for Respiratory Pro-
(i) Before beginning work at the fa- tection (as specified in § 250.198);
cility; and (v) Basic first-aid procedures applica-
(ii) Each year, within 1 year after ble to victims of H2S exposure. During
completion of the previous class. all drills and training sessions, you
(2) What training documentation do I must address procedures for rescue and
need? For each individual working on first aid for H2S victims;
the platform, either: (vi) Location of:
112
(A) The first-aid kit on the facility; Letter height Wording

(B) Resuscitators; and
Poisonous Gas.
(C) Litter or other device on the fa- Hydrogen Sulfide.
cility. 7 inches .................................. Do not approach if red flag is
(vii) Meaning of all warning signals. flying.
(5) Do I need to post safety information? (Use appropriate wording at Do not approach if red lights
right). are flashing.
You must prominently post safety in-
formation on the facility and on ves-
sels serving the facility (i.e., basic (4) May I use existing signs? You may
first-aid, escape routes, instructions use existing signs containing the words
for use of life boats, etc.). ‘‘Danger-Hydrogen Sulfide-H2S,’’ pro-
(h) Drills. (1) When and how often do I vided the words ‘‘Poisonous Gas. Do
need to conduct drills on H2S safety dis- Not Approach if Red Flag is Flying’’ or
cussions on the facility? You must: ‘‘Red Lights are Flashing’’ in lettering
(i) Conduct a drill for each person at of a minimum of 7 inches in height are
the facility during normal duty hours displayed on a sign immediately adja-
at least once every 7-day period. The cent to the existing sign.
drills must consist of a dry-run per- (5) What are the requirements for flash-
formance of personnel activities re- ing lights or flags? You must activate a
lated to assigned jobs. sufficient number of lights or hoist a
(ii) At a safety meeting or other sufficient number of flags to be visible
meetings of all personnel, discuss drill to vessels and aircraft. Each light must
performance, new H2S considerations be of sufficient intensity to be seen by
at the facility, and other updated H2S approaching vessels or aircraft any
information at least monthly. time it is activated (day or night).
(2) What documentation do I need? You Each flag must be red, rectangular, a
must keep records of attendance for: minimum width of 3 feet, and a min-
(i) Drilling, well-completion, and imum height of 2 feet.
well-workover operations at the facil- (6) What is an audible warning system?
ity until operations are completed; and An audible warning system is a public
(ii) Production operations at the fa- address system or siren, horn, or other
cility or at the nearest field office for similar warning device with a unique
1 year. sound used only for H2S.
(i) Visual and audible warning systems: (7) Are there any other requirements for
(1) How must I install wind direction visual or audible warning devices? Yes,
equipment? You must install wind-di- you must:
rection equipment in a location visible (i) Illuminate all signs and flags at
at all times to individuals on or in the night and under conditions of poor visi-
immediate vicinity of the facility. bility; and
(2) When do I need to display oper- (ii) Use warning devices that are suit-
ational danger signs, display flags, or ac- able for the electrical classification of
tivate visual or audible alarms? the area.
(i) You must display warning signs at (8) What actions must I take when the
all times on facilities with wells capa- alarms are activated? When the warning
ble of producing H2S and on facilities devices are activated, the designated
that process gas containing H2S in con- responsible persons must inform per-
centrations of 20 ppm or more. sonnel of the level of danger and issue
(ii) In addition to the signs, you must instructions on the initiation of appro-
activate audible alarms and display priate protective measures.
flags or activate flashing red lights (j) H2S-detection and H2S monitoring
when atmospheric concentration of H2S equipment: (1) What are the requirements
reaches 20 ppm. for an H2S detection system? An H2S de-
(3) What are the requirements for signs? tection system must:
Each sign must be a high-visibility yel- (i) Be capable of sensing a minimum
low color with black lettering as fol- of 10 ppm of H2S in the atmosphere;
lows: and
(ii) Activate audible and visual

Letter height Wording
alarms when the concentration of H2S
12 inches ................................ Danger. in the atmosphere reaches 20 ppm.
113
§ 250.490 30 CFR Ch. II (7–1–18 Edition)
(2) Where must I have sensors for drill- (iv) You may use one sensor to detect
ing, well-completion, and well-workover H2S around multiple pieces of equip-
operations? You must locate sensors at ment, provided the sensor is located no
the: more than 10 feet from each piece, ex-
(i) Bell nipple; cept that you need to use at least two
(ii) Mud-return line receiver tank sensors to monitor compressors exceed-
(possum belly); ing 50 horsepower;
(iii) Pipe-trip tank; (v) You do not need to have sensors
(iv) Shale shaker; near wells that are shut in at the mas-
(v) Well-control fluid pit area; ter valve and sealed closed;
(vi) Driller’s station; (vi) When you determine where to
(vii) Living quarters; and place sensors, you must consider:
(A) The location of system fittings,
(viii) All other areas where H2S may
flanges, valves, and other devices sub-
accumulate.
ject to leaks to the atmosphere; and
(3) Do I need mud sensors? The Dis-
(B) Design factors, such as the type
trict Manager may require mud sensors
of decking and the location of fire
in the possum belly in cases where the
walls; and
ambient air sensors in the mud-return
(vii) The District Manager may re-
system do not consistently detect the
quire additional sensors or other moni-
presence of H2S.
toring capabilities, if warranted by site
(4) How often must I observe the sen- specific conditions.
sors? During drilling, well-completion (6) How must I functionally test the H2S
and well-workover operations, you Detectors? (i) Personnel trained to cali-
must continuously observe the H2S lev- brate the particular H2S detector
els indicated by the monitors in the equipment being used must test detec-
work areas during the following oper- tors by exposing them to a known con-
ations: centration in the range of 10 to 30 ppm
(i) When you pull a wet string of drill of H2S.
pipe or workover string; (ii) If the results of any functional
(ii) When circulating bottoms-up test are not within 2 ppm or 10 percent,
after a drilling break; whichever is greater, of the applied
(iii) During cementing operations; concentration, recalibrate the instru-
(iv) During logging operations; and ment.
(v) When circulating to condition (7) How often must I test my detectors?
mud or other well-control fluid. (i) When conducting drilling, drill stem
(5) Where must I have sensors for pro- testing, well-completion, or well-
duction operations? On a platform where workover operations in areas classified
gas containing H2S of 20 ppm or greater as H2S present or H2S unknown, test all
is produced, processed, or otherwise detectors at least once every 24 hours.
handled: When drilling, begin functional testing
(i) You must have a sensor in rooms, before the bit is 1,500 feet (vertically)
buildings, deck areas, or low-laying above the potential H2S zone.
deck areas not otherwise covered by (ii) When conducting production op-
paragraph (j)(2) of this section, where erations, test all detectors at least
atmospheric concentrations of H2S every 14 days between tests.
could reach 20 ppm or more. You must (iii) If equipment requires calibration
have at least one sensor per 400 square as a result of two consecutive func-
feet of deck area or fractional part of tional tests, the District Manager may
400 square feet; require that H2S-detection and H2S-
(ii) You must have a sensor in build- monitoring equipment be functionally
ings where personnel have their living tested and calibrated more frequently.
quarters; (8) What documentation must I keep? (i)
(iii) You must have a sensor within 10 You must maintain records of testing
feet of each vessel, compressor, well- and calibrations (in the drilling or pro-
head, manifold, or pump, which could duction operations report, as applica-
release enough H2S to result in atmos- ble) at the facility to show the present
pheric concentrations of 20 ppm at a status and history of each device, in-
distance of 10 feet from the component; cluding dates and details concerning:
114
(A) Installation; classified as H2S present or H2S un-

(B) Removal; known, you must:
(C) Inspection; (i) Provide all personnel, including
(D) Repairs; contractors and visitors on a facility,
(E) Adjustments; and with immediate access to self-con-
(F) Reinstallation. tained pressure-demand-type res-
(ii) Records must be available for in- pirators with hoseline capability and
spection by BSEE personnel. breathing time of at least 15 minutes.
(9) What are the requirements for near- (ii) Design, select, use, and maintain
by vessels? If vessels are stationed over- respirators in conformance with ANSI
night alongside facilities in areas of Z88.2 (as specified in § 250.198).
H2S present or H2S unknown, you must (iii) Make available at least two
equip vessels with an H2S-detection voice-transmission devices, which can
system that activates audible and vis- be used while wearing a respirator, for
ual alarms when the concentration of use by designated personnel.
H2S in the atmosphere reaches 20 ppm. (iv) Make spectacle kits available as
This requirement does not apply to needed.
vessels positioned upwind and at a safe (v) Store protective-breathing equip-
distance from the facility in accord- ment in a location that is quickly and
ance with the positioning procedure de- easily accessible to all personnel.
scribed in the approved H2S Contin- (vi) Label all breathing-air bottles as
gency Plan. containing breathing-quality air for
(10) What are the requirements for near- human use.
by facilities? The District Manager may (vii) Ensure that vessels attendant to
require you to equip nearby facilities facilities carry appropriate protective-
with portable or fixed H2S detector(s) breathing equipment for each crew
and to test and calibrate those detec- member. The District Manager may re-
tors. To invoke this requirement, the quire additional protective-breathing
District Manager will consider disper- equipment on certain vessels attendant
sion modeling results from a possible to the facility.
release to determine if 20 ppm H2S con- (viii) During H2S alerts, limit heli-
centration levels could be exceeded at copter flights to and from facilities to
nearby facilities. the conditions specified in the H2S Con-
(11) What must I do to protect against tingency Plan. During authorized
SO2 if I burn gas containing H2S? You flights, the flight crew and passengers
must: must use pressure-demand-type res-
(i) Monitor the SO2concentration in pirators. You must train all members
the air with portable or strategically of flight crews in the use of the par-
placed fixed devices capable of detect- ticular type(s) of respirator equipment
ing a minimum of 2 ppm of SO2; made available.
(ii) Take readings at least hourly and (ix) As appropriate to the particular
at any time personnel detect SO2 odor operation(s), (production, drilling,
or nasal irritation; well-completion or well-workover oper-
(iii) Implement the personnel protec- ations, or any combination of them),
tive measures specified in the H2S Con- provide a system of breathing-air
tingency Plan if the SO2 concentration manifolds, hoses, and masks at the fa-
in the work area reaches 2 ppm; and cility and the briefing areas. You must
(iv) Calibrate devices every 3 months provide a cascade air-bottle system for
if you use fixed or portable electronic the breathing-air manifolds to refill in-
sensing devices to detect SO2. dividual protective-breathing appa-
(12) May I use alternative measures? ratus bottles. The cascade air-bottle
You may follow alternative measures system may be recharged by a high-
instead of those in paragraph (j)(11) of pressure compressor suitable for pro-
this section if you propose and the Re- viding breathing-quality air, provided
gional Supervisor approves the alter- the compressor suction is located in an
native measures. uncontaminated atmosphere.

(13) What are the requirements for pro- (k) Personnel safety equipment: (1)
tective-breathing equipment? In an area What additional personnel-safety
115
§ 250.490 30 CFR Ch. II (7–1–18 Edition)
equipment do I need? You must ensure (m) Do I need to use special drilling,
that your facility has: completion and workover fluids or proce-
(i) Portable H2S detectors capable of dures? When working in an area classi-
detecting a 10 ppm concentration of fied as H2S present or H2S unknown:
H2S in the air available for use by all (1) You may use either water- or oil-
personnel; base muds in accordance with
(ii) Retrieval ropes with safety har- § 250.300(b)(1).
nesses to retrieve incapacitated per- (2) If you use water-base well-control
sonnel from contaminated areas; fluids, and if ambient air sensors detect
(iii) Chalkboards and/or note pads for H2S, you must immediately conduct ei-
communication purposes located on ther the Garrett-Gas-Train test or a
the rig floor, shale-shaker area, the ce- comparable test for soluble sulfides to
ment-pump rooms, well-bay areas, pro- confirm the presence of H2S.
duction processing equipment area, gas (3) If the concentration detected by
compressor area, and pipeline-pump air sensors in over 20 ppm, personnel
area; conducting the tests must don protec-
(iv) Bull horns and flashing lights; tive-breathing equipment conforming
and to paragraph (j)(13) of this section.
(v) At least three resuscitators on (4) You must maintain on the facility
manned facilities, and a number equal sufficient quantities of additives for
to the personnel on board, not to ex- the control of H2S, well-control fluid
ceed three, on normally unmanned fa- pH, and corrosion equipment.
cilities, complete with face masks, ox- (i) Scavengers. You must have scav-
ygen bottles, and spare oxygen bottles. engers for control of H2S available on
the facility. When H2S is detected, you
(2) What are the requirements for ven-
must add scavengers as needed. You
tilation equipment? You must:
must suspend drilling until the scav-
(i) Use only explosion-proof ventila-
enger is circulated throughout the sys-
tion devices;
tem.
(ii) Install ventilation devices in (ii) Control pH. You must add addi-
areas where H2S or SO2 may accumu- tives for the control of pH to water-
late; and base well-control fluids in sufficient
(iii) Provide movable ventilation de- quantities to maintain pH of at least
vices in work areas. The movable ven- 10.0.
tilation devices must be multidirec- (iii) Corrosion inhibitors. You must
tional and capable of dispersing H2S or add additives to the well-control fluid
SO2 vapors away from working per- system as needed for the control of cor-
sonnel. rosion.
(3) What other personnel safety equip- (5) You must degas well-control
ment do I need? You must have the fol- fluids containing H2S at the optimum
lowing equipment readily available on location for the particular facility. You
each facility: must collect the gases removed and
(i) A first-aid kit of appropriate size burn them in a closed flare system con-
and content for the number of performing to paragraph (q)(6) of this sec-
sonnel on the facility; and tion.
(ii) At least one litter or an equiva- (n) What must I do in the event of a
lent device. kick? In the event of a kick, you must
(l) Do I need to notify BSEE in the use one of the following alternatives to
event of an H2S release? You must notify dispose of the well-influx fluids giving
BSEE without delay in the event of a consideration to personnel safety, pos-
gas release which results in a 15- sible environmental damage, and pos-
minute time-weighted average atmos- sible facility well-equipment damage:
pheric concentration of H2S of 20 ppm (1) Contain the well-fluid influx by
or more anywhere on the OCS facility. shutting in the well and pumping the
You must report these gas releases to fluids back into the formation.
the District Manager immediately by (2) Control the kick by using appro-
oral communication, with a written priate well-control techniques to pre-

follow-up report within 15 days, pursu- vent formation fracturing in an open
ant to §§ 250.188 through 250.190. hole within the pressure limits of the
116
well equipment (drill pipe, work string, for this purpose after completion of the
casing, wellhead, BOP system, and retest.
lated equipment). The disposal of H2S (6) Use surface test units and related
and other gases must be through pres- equipment that is designed for H2S
surized or atmospheric mud-separator service.
equipment depending on volume, pres- (p) Metallurgical properties of equip-
sure and concentration of H2S. The ment. When operating in a zone with
equipment must be designed to recover H2S present, you must use equipment
well-control fluids and burn the gases that is constructed of materials with
separated from the well-control fluid. metallurgical properties that resist or
The well-control fluid must be treated prevent sulfide stress cracking (also
to neutralize H2S and restore and known as hydrogen embrittlement,
maintain the proper quality. stress corrosion cracking, or H2S em-
(o) Well testing in a zone known to con- brittlement), chloride-stress cracking,
tain H2S. When testing a well in a zone hydrogen-induced cracking, and other
with H2S present, you must do all of failure modes. You must do all of the
the following: following:
(1) Before starting a well test, con- (1) Use tubulars and other equipment,
duct safety meetings for all personnel casing, tubing, drill pipe, couplings,
who will be on the facility during the flanges, and related equipment that is
test. At the meetings, emphasize the designed for H2S service.
use of protective-breathing equipment, (2) Use BOP system components,
first-aid procedures, and the Contin- wellhead, pressure-control equipment,
gency Plan. Only competent personnel and related equipment exposed to H2S-
who are trained and are knowledgeable bearing fluids in conformance with
of the hazardous effects of H2S must be NACE Standard MR0175–03 (as specified
engaged in these tests. in § 250.198).
(2) Perform well testing with the (3) Use temporary downhole well-se-
minimum number of personnel in the curity devices such as retrievable
immediate vicinity of the rig floor and packers and bridge plugs that are de-
with the appropriate test equipment to signed for H2S service.
safely and adequately perform the test. (4) When producing in zones bearing
During the test, you must continuously H2S, use equipment constructed of ma-
monitor H2S levels. terials capable of resisting or pre-
(3) Not burn produced gases except venting sulfide stress cracking.
through a flare which meets the re- (5) Keep the use of welding to a min-
quirements of paragraph (q)(6) of this imum during the installation or modi-
section. Before flaring gas containing fication of a production facility. Weld-
H2S, you must activate SO2 monitoring ing must be done in a manner that en-
equipment in accordance with para- sures resistance to sulfide stress crack-
graph (j)(11) of this section. If you de- ing.
tect SO2 in excess of 2 ppm, you must (q) General requirements when oper-
implement the personnel protective ating in an H2S zone: (1) Coring oper-
measures in your H2S Contingency ations. When you conduct coring oper-
Plan, required by paragraph (f) of this ations in H2S-bearing zones, all per-
section. You must also follow the re- sonnel in the working area must wear
quirements of § 250.1164. You must pipe protective-breathing equipment at
gases from stored test fluids into the least 10 stands in advance of retrieving
flare outlet and burn them. the core barrel. Cores to be transported
(4) Use downhole test tools and well- must be sealed and marked for the
head equipment suitable for H2S serv- presence of H2S.
ice. (2) Logging operations. You must treat
(5) Use tubulars suitable for H2S serv- and condition well-control fluid in use
ice. You must not use drill pipe for well for logging operations to minimize the
testing without the prior approval of effects of H2S on the logging equip-
the District Manager. Water cushions ment.
must be thoroughly inhibited in order (3) Stripping operations. Personnel

to prevent H2S attack on metals. You must monitor displaced well-control
must flush the test string fluid treated fluid returns and wear protective-
117
§ 250.500 30 CFR Ch. II (7–1–18 Edition)
breathing equipment in the working taining H2S must be of H2S-resistant

area when the atmospheric concentra- materials.
tion of H2S reaches 20 ppm or if the (9) Fuel and/or instrument gas. You
well is under pressure. must not use gas containing H2S for in-
(4) Gas-cut well-control fluid or well strument gas. You must not use gas
kick from H2S-bearing zone. If you decide containing H2S for fuel gas without the
to circulate out a kick, personnel in prior approval of the District Manager.
the working area during bottoms-up (10) Sensing lines and devices. Metals
and extended-kill operations must wear used for sensing line and safety-control
protective-breathing equipment. devices which are necessarily exposed
(5) Drill- and workover-string design to H2S-bearing fluids must be con-
and precautions. Drill- and workover- structed of H2S-corrosion resistant ma-
strings must be designed consistent terials or coated so as to resist H2S
with the anticipated depth, conditions corrosion.
of the hole, and reservoir environment (11) Elastomer seals. You must use
to be encountered. You must minimize
H2S-resistant materials for all seals
exposure of the drill- or workover-
which may be exposed to fluids con-
string to high stresses as much as prac-
taining H2S.
tical and consistent with well condi-
tions. Proper handling techniques must (12) Water disposal. If you dispose of
be taken to minimize notching and produced water by means other than
stress concentrations. Precautions subsurface injection, you must submit
must be taken to minimize stresses to the District Manager an analysis of
caused by doglegs, improper stiffness the anticipated H2S content of the
ratios, improper torque, whip, abrasive water at the final treatment vessel and
wear on tool joints, and joint imbal- at the discharge point. The District
ance. Manager may require that the water be
(6) Flare system. The flare outlet must treated for removal of H2S. The Dis-
be of a diameter that allows easy non- trict Manager may require the sub-
restricted flow of gas. You must locate mittal of an updated analysis if the
flare line outlets on the downside of water disposal rate or the potential
the facility and as far from the facility H2S content increases.
as is feasible, taking into account the (13) Deck drains. You must equip open
prevailing wind directions, the wake deck drains with traps or similar de-
effects caused by the facility and adja- vices to prevent the escape of H2S gas
cent structure(s), and the height of all into the atmosphere.
such facilities and structures. You (14) Sealed voids. You must take pre-
must equip the flare outlet with an cautions to eliminate sealed spaces in
automatic ignition system including a piping designs (e.g., slip-on flanges, re-
pilot-light gas source or an equivalent inforcing pads) which can be invaded
system. You must have alternate by atomic hydrogen when H2S is
methods for igniting the flare. You present.
must pipe to the flare system used for
H2S all vents from production process
equipment, tanks, relief valves, burst
Subpart E—Oil and Gas Well-
plates, and similar devices. Completion Operations
(7) Corrosion mitigation. You must use
§ 250.500 General requirements.
effective means of monitoring and con-
trolling corrosion caused by acid gases Well-completion operations must be
(H2S and CO2) in both the downhole and conducted in a manner to protect
surface portions of a production sys- against harm or damage to life (includ-
tem. You must take specific corrosion ing fish and other aquatic life), prop-
monitoring and mitigating measures in erty, natural resources of the OCS, in-
areas of unusually severe corrosion cluding any mineral deposits (in areas
where accumulation of water and/or leased and not leased), the National se-
higher concentration of H2S exists. curity or defense, or the marine, coast-

(8) Wireline lubricators. Lubricators al, or human environment. In addition
which may be exposed to fluids con- to the requirements of this subpart,
118
you must also follow the applicable re- §§ 250.506–250.508 [Reserved]

quirements of subpart G of this part.
§ 250.509 Well-completion structures
[81 FR 26021, Apr. 29, 2016] on fixed platforms.
§ 250.501 Definition. Derricks, masts, substructures, and
related equipment shall be selected, de-
When used in this subpart, the fol- signed, installed, used, and maintained
lowing term shall have the meaning so as to be adequate for the potential
given below: loads and conditions of loading that
Well-completion operations means the may be encountered during the pro-
work conducted to establish the proposed operations. Prior to moving a
duction of a well after the production- well-completion rig or equipment onto
casing string has been set, cemented, a platform, the lessee shall determine
and pressure-tested. the structural capability of the plat-
form to safely support the equipment
§ 250.502 [Reserved] and proposed operations, taking into
consideration the corrosion protection,
§ 250.503 Emergency shutdown system. age of platform, and previous stresses
When well-completion operations are to the platform.
conducted on a platform where there § 250.510 Diesel engine air intakes.
are other hydrocarbon-producing wells
Diesel engine air intakes must be
or other hydrocarbon flow, an emer-
equipped with a device to shut down
gency shutdown system (ESD) manu-
the diesel engine in the event of run-
ally controlled station shall be in-
away. Diesel engines that are continu-
stalled near the driller’s console or ously attended must be equipped with
well-servicing unit operator’s work sta- either remote operated manual or
tion. automatic-shutdown devices. Diesel en-
gines that are not continuously at-
§ 250.504 Hydrogen sulfide.
tended must be equipped with auto-
When a well-completion operation is matic-shutdown devices.
conducted in zones known to contain
hydrogen sulfide (H2S) or in zones § 250.511 Traveling-block safety de-
where the presence of H2S is unknown vice.
(as defined in § 250.490 of this part), the All units being used for well-comple-
lessee shall take appropriate pre- tion operations that have both a trav-
cautions to protect life and property on eling block and a crown block must be
the platform or completion unit, in- equipped with a safety device that is
cluding, but not limited to operations designed to prevent the traveling block
such as blowing the well down, disman- from striking the crown block. The de-
tling wellhead equipment and flow vice must be checked for proper oper-
lines, circulating the well, swabbing, ation weekly and after each drill-line
and pulling tubing, pumps, and pack- slipping operation. The results of the
ers. The lessee shall comply with the operational check must be entered in
requirements in § 250.490 of this part as the operations log.
well as the appropriate requirements of § 250.512 Field well-completion rules.
this subpart.
When geological and engineering in-
§ 250.505 Subsea completions. formation available in a field enables
the District Manager to determine spe-
No subsea well completion shall be cific operating requirements, field
commenced until the lessee obtains well-completion rules may be estab-
written approval from the District lished on the District Manager’s initia-
Manager in accordance with § 250.513 of tive or in response to a request from a
this part. That approval shall be based lessee. Such rules may modify the spe-
upon a case-by-case determination that cific requirements of this subpart.
the proposed equipment and procedures After field well-completion rules have
will adequately control the well and been established, well-completion oper-
permit safe production operations. ations in the field shall be conducted in
119
§ 250.513 30 CFR Ch. II (7–1–18 Edition)
accordance with such rules and other (d) You must submit public informa-
requirements of this subpart. Field tion copies of Form BSEE–0125 accord-
well-completion rules may be amended ing to § 250.186.
or canceled for cause at any time upon
the initiative of the District Manager
FR 50894, Aug. 22, 2012; 81 FR 26021, Apr. 29,
or upon the request of a lessee. 2016]
§ 250.513 Approval and reporting of § 250.514 Well-control fluids, equip-
well-completion operations.
ment, and operations.
(a) No well-completion operation
(a) Well-control fluids, equipment,
may begin until the lessee receives
and operations shall be designed, uti-
written approval from the District
lized, maintained, and/or tested as nec-
Manager. If completion is planned and
the data are available at the time you essary to control the well in foresee-
submit the Application for Permit to able conditions and circumstances, in-
Drill and Supplemental APD Informa- cluding subfreezing conditions. The
tion Sheet (Forms BSEE–0123 and well shall be continuously monitored
BSEE–0123S), you may request ap- during well-completion operations and
proval for a well-completion on those shall not be left unattended at any
forms (see §§ 250.410 through 250.418 of time unless the well is shut in and se-
this part). If the District Manager has cured.
not approved the completion or if the (b) The following well-control-fluid
completion objective or plans have sig- equipment shall be installed, main-
nificantly changed, you must submit tained, and utilized:
an Application for Permit to Modify (1) A fill-up line above the uppermost
(Form BSEE–0124) for approval of such BOP;
operations. (2) A well-control, fluid-volume
(b) You must submit the following measuring device for determining fluid
with Form BSEE–0124 (or with Form volumes when filling the hole on trips;
BSEE–0123; Form BSEE–0123S): and
(1) A brief description of the well- (3) A recording mud-pit-level indi-
completion procedures to be followed, a cator to determine mud-pit-volume
statement of the expected surface pres- gains and losses. This indicator shall
sure, and type and weight of comple-
include both a visual and an audible
tion fluids;
warning device.
(2) A schematic drawing of the well
(c) When coming out of the hole with
showing the proposed producing zone(s)
drill pipe, the annulus shall be filled
and the subsurface well-completion
equipment to be used; with well-control fluid before the
change in such fluid level decreases the
(3) For multiple completions, a par-
tial electric log showing the zones pro- hydrostatic pressure 75 pounds per
posed for completion, if logs have not square inch (psi) or every five stands of
been previously submitted; drill pipe, whichever gives a lower de-
(4) All applicable information re- crease in hydrostatic pressure. The
quired in § 250.731. number of stands of drill pipe and drill
(5) When the well-completion is in a collars that may be pulled prior to fill-
zone known to contain H2S or a zone ing the hole and the equivalent well-
where the presence of H2S is unknown, control fluid volume shall be cal-
information pursuant to § 250.490 of this culated and posted near the operator’s
part; and station. A mechanical, volumetric, or
(6) Payment of the service fee listed electronic device for measuring the
in § 250.125. amount of well-control fluid required
(c) Within 30 days after completion, to fill the hole shall be utilized.
you must submit to the District Man- [76 FR 64462, Oct. 18, 2011, as amended at 77
ager an End of Operations Report
FR 50894, Aug. 22, 2012; 81 FR 26021, Apr. 29,

(Form BSEE–0125), including a sche- 2016]
matic of the tubing and subsurface
equipment.
120
§§ 250.515–250.517 [Reserved] strength and pressure integrity and is

otherwise suitable for its intended use.
§ 250.518 Tubing and wellhead equip- (b) When the tree is installed, you
ment. must equip wells to monitor for casing
(a) No tubing string shall be placed in pressure according to the following
service or continue to be used unless chart:
such tubing string has the necessary
If you . . . you must equip . . . so you can monitor . . .
(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 wellhead, all annuli at the surface (A and B riser annuli). If the produc-
tion 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.
(c) Wellhead, tree, and related equip- (3) The production packer must be
ment shall have a pressure rating set as close as practically possible to
greater than the shut-in tubing pres- the perforated interval; and
sure and shall be designed, installed, (4) The production packer must be
used, maintained, and tested so as to set at a depth that is within the ce-
achieve and maintain pressure control. mented interval of the selected casing
New wells completed as flowing or gas- section.
lift wells shall be equipped with a min- (f) Your APM must include a descrip-
imum of one master valve and one sur- tion and calculations for how you de-
face safety valve, installed above the termined the production packer setting
master valve, in the vertical run of the depth.
tree. [76 FR 64462, Oct. 18, 2011. Redesignated at 77
(d) Subsurface safety equipment FR 50894, Aug. 22, 2012; 81 FR 26021, Apr. 29,
2016; 81 FR 61918, Sept. 7, 2016]
must be installed, maintained, and
tested in compliance with the applica- CASING PRESSURE MANAGEMENT
ble sections in §§ 250.810 through 250.839.
(e) When installed, packers and § 250.519 What are the requirements
bridge plugs must meet the following: for casing pressure management?
(1) All permanently installed packers Once you install your wellhead, you
and bridge plugs must comply with API must meet the casing pressure manage-
Spec. 11D1 (as incorporated by ref- ment requirements of API RP 90 (as in-
erence in § 250.198); corporated by reference in § 250.198) and
(2) The production packer must be the requirements of §§ 250.519 through
set at a depth that will allow for a col- 250.530. If there is a conflict between
umn of weighted fluids to be placed API RP 90 and the casing pressure re-
above the packer that will exert a hy- quirements of this subpart, you must
drostatic force greater than or equal to follow the requirements of this sub-
the force created by the reservoir pres- part.
sure below the packer; [76 FR 64462, Oct. 18, 2011. Redesignated at 77
FR 50894, Aug. 22, 2012]
§ 250.520 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 pressure data point re-

If you have . . . you must monitor . . . corded per . . .
(a) fixed platform wells, monthly, month for each casing.
121
§ 250.521 30 CFR Ch. II (7–1–18 Edition)
with a minimum one pressure data point re-

If you have . . . you must monitor . . . corded per . . .
(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 casing pressure re- daily, day for each casing.
quest on a manned fixed platform,
(e) wells operating under a casing pressure re- weekly, week for each casing.
quest on an unmanned fixed platform,
[76 FR 64462, Oct. 18, 2011. Redesignated at 77 FR 50894, Aug. 22, 2012]
§ 250.521 When do I have to perform a serving or imposing casing pressure ac-

casing diagnostic test? cording to the following table:
(a) You must perform a casing diag-
nostic test within 30 days after first ob-
If you have a . . . you must perform a casing diagnostic 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 eration to manage thermal casing pres-
a diagnostic pressure test for the pro- sure; therefore, you do not need to
duction casing on a well operating evaluate these operations as a casing
under active gas lift. diagnostic test. After 30 days of contin-
uous production, the initial production
[76 FR 64462, Oct. 18, 2011. Redesignated at 77
FR 50894, Aug. 22, 2012]
startup operation is complete and you
must perform casing diagnostic testing
§ 250.522 How do I manage the thermal as required in §§ 250.520 and 250.522.
effects caused by initial production [76 FR 64462, Oct. 18, 2011. Redesignated at 77
on a newly completed or recom- FR 50894, Aug. 22, 2012]
pleted well?
A newly completed or recompleted § 250.523 When do I have to repeat cas-
well often has thermal casing pressure ing diagnostic testing?
during initial startup. Bleeding casing Casing diagnostic testing must be re-
pressure during the startup process is peated according to the following
considered a normal and necessary op- table:
When . . . you must repeat diagnostic testing . . .
(a) your casing pressure request approved term has expired, immediately.
(b) your well, previously on gas lift, has been shut-in or re- immediately on the production casing (A annulus). The produc-
turned to flowing status without gas lift for more than 180 tion casing (A annulus) of wells on active gas lift are exempt
days, from diagnostic testing.
(c) your casing pressure request becomes invalid, within 30 days.
(d) a casing or riser has an increase in pressure greater than within 30 days.
200 psig over the previous casing diagnostic test,
(e) after any corrective action has been taken to remediate un- within 30 days.
desirable 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 once per year, not to exceed 12 months between tests.
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) once every 5 years, at a minimum.
has a pressure exceeding 20 percent of its MIYP,
122
§ 250.524 How long do I keep records 24 hours, or is not bled to 0 psig during
of casing pressure and diagnostic a casing diagnostic test;
tests? (c) Any well that has demonstrated
Records of casing pressure and diag- tubing/casing, tubing/riser, casing/cas-
nostic tests must be kept at the field ing, riser/casing, or riser/riser commu-
office nearest the well for a minimum nication;
of 2 years. The last casing diagnostic (d) Any well that has sustained cas-
test for each casing or riser must be re- ing pressure (SCP) and is bled down to
tained at the field office nearest the prevent it from exceeding its MAWOP,
well until the well is abandoned. except during initial startup oper-
[76 FR 64462, Oct. 18, 2011. Redesignated at 77 ations described in § 250.521;
FR 50894, Aug. 22, 2012] (e) Any hybrid well with casing or
riser pressure exceeding 100 psig; or
§ 250.525 When am I required to take (f) Any subsea well with a casing
action from my casing diagnostic
test? pressure 100 psig greater than the ex-
ternal hydrostatic pressure at the
You must take action if you have subsea wellhead.
any of the following conditions:
(a) Any fixed platform well with a [76 FR 64462, Oct. 18, 2011. Redesignated at 77
casing pressure exceeding its maximum FR 50894, Aug. 22, 2012]
allowable wellhead operating pressure
(MAWOP); § 250.526 What do I submit if my cas-
ing diagnostic test requires action?
(b) Any fixed platform well with a
casing pressure that is greater than 100 Within 14 days after you perform a
psig and that cannot bleed to 0 psig casing diagnostic test requiring action
through a 1⁄2-inch needle valve within under § 250.524:
You must submit either to the appropriate . . . and it must include . . . You must also . . .
. . .
(a) a notification of cor- District Manager and requirements under submit an Application for Permit to Modify or
rective action; or, copy the Regional § 250.526, Corrective Action Plan within 30 days of the
Supervisor, Field Op- diagnostic test.
erations,
(b) a casing pressure re- Regional Supervisor, requirements under
quest, Field Operations, § 250.527.
§ 250.527 What must I include in my (c) Area name and OCS block num-
notification of corrective action? ber;
(d) Well number;
The following information must be
(e) Company name and mailing ad-
included in the notification of correc-
dress;
tive action:
(f) All casing, riser, and tubing sizes,
(a) Lessee or Operator name; weights, grades, and MIYP;
(b) Area name and OCS block num- (g) All casing/riser calculated
ber; MAWOPs;
(c) Well name and API number; and (h) All casing/riser pre-bleed down
(d) Casing diagnostic test data. pressures;
(i) Shut-in tubing pressure;
FR 50894, Aug. 22, 2012] (j) Flowing tubing pressure;
(k) Date and the calculated daily pro-
§ 250.528 What must I include in my duction rate during last well test (oil,
casing pressure request? gas, basic sediment, and water);
(l) Well status (shut-in, temporarily
The following information must be abandoned, producing, injecting, or gas
included in the casing pressure request: lift);

(a) API number; (m) Well type (dry tree, hybrid, or
(b) Lease number; subsea);
123
§ 250.529 30 CFR Ch. II (7–1–18 Edition)
(n) Date of diagnostic test; gional Supervisor, Field Operations,

(o) Well schematic; within 14 days of completion of the di-
(p) Water depth; agnostic test required under § 250.522(e).
(q) Volumes and types of fluid bled
from each casing or riser evaluated;
FR 50894, Aug. 22, 2012]
(r) Type of diagnostic test performed:
(1) Bleed down/buildup test; § 250.531 When does my casing pres-
(2) Shut-in the well and monitor the sure request approval become in-
pressure drop test; valid?
(3) Constant production rate and de-
A casing pressure request becomes
crease the annular pressure test;
invalid when:
(4) Constant production rate and in-
crease the annular pressure test; (a) The casing or riser pressure in-
(5) Change the production rate and creases by 200 psig over the approved
monitor the casing pressure test; and casing pressure request pressure;
(6) Casing pressure and tubing pres- (b) The approved term ends;
sure history plot; (c) The well is worked-over, side-
(s) The casing diagnostic test data tracked, redrilled, recompleted, or acid
for all casing exceeding 100 psig; stimulated;
(t) Associated shoe strengths for cas- (d) A different casing or riser on the
ing shoes exposed to annular fluids; same well requires a casing pressure re-
(u) Concentration of any H2S that quest; or
may be present; (e) A well has more than one casing
(v) Whether the structure on which operating under a casing pressure re-
the well is located is manned or un- quest and one of the casing pressure re-
manned; quests become invalid, then all casing
(w) Additional comments; and pressure requests for that well become
(x) Request date. invalid.
[76 FR 64462, Oct. 18, 2011. Redesignated at 77 [76 FR 64462, Oct. 18, 2011. Redesignated at 77
FR 50894, Aug. 22, 2012] FR 50894, Aug. 22, 2012]
§ 250.529 What are the terms of my

casing pressure request? Subpart F—Oil and Gas Well-
Workover Operations
Casing pressure requests are ap-
proved by the Regional Supervisor, § 250.600 General requirements.
Field Operations, for a term to be de-
termined by the Regional Supervisor Well-workover operations must be
on a case-by-case basis. The Regional conducted in a manner to protect
Supervisor may impose additional re- against harm or damage to life (includ-
strictions or requirements to allow ing fish and other aquatic life), prop-
continued operation of the well. erty, natural resources of the Outer
Continental Shelf (OCS) including any
[76 FR 64462, Oct. 18, 2011. Redesignated at 77 mineral deposits (in areas leased and
FR 50894, Aug. 22, 2012] not leased), the National security or
defense, or the marine, coastal, or
§ 250.530 What if my casing pressure
request is denied? human environment. In addition to the
requirements of this subpart, you must
(a) If your casing pressure request is also follow the applicable requirements
denied, then the operating company of subpart G of this part.
must submit plans for corrective ac-
tion to the respective District Manager [81 FR 26021, Apr. 29, 2016]
within 30 days of receiving the denial.
The District Manager will establish a § 250.601 Definitions.
specific time period in which this cor- When used in this subpart, the fol-
rective action will be taken. You must lowing terms shall have the meanings
notify the respective District Manager given below:
within 30 days after completion of your Expected surface pressure means the
corrected action. highest pressure predicted to be ex-

(b) You must submit the casing diag- erted upon the surface of a well. In cal-
nostic test data to the appropriate Re- culating expected surface pressure, you
124
must consider reservoir pressure as § 250.490 of this part as well as the ap-
well as applied surface pressure. propriate requirements of this subpart.
Routine operations mean any of the
following operations conducted on a § 250.605 Subsea workovers.
well with the tree installed: No subsea well-workover operation
(a) Cutting paraffin; including routine operations shall be
(b) Removing and setting pump- commenced until the lessee obtains
through-type tubing plugs, gas-lift written approval from the District
valves, and subsurface safety valves Manager in accordance with § 250.613 of
which can be removed by wireline oper- this part. That approval shall be based
ations; upon a case-by-case determination that
(c) Bailing sand; the proposed equipment and procedures
(d) Pressure surveys; will maintain adequate control of the
(e) Swabbing; well and permit continued safe produc-
(f) Scale or corrosion treatment; tion operations.
(g) Caliper and gauge surveys;
(h) Corrosion inhibitor treatment; §§ 250.606–250.608 [Reserved]
(i) Removing or replacing subsurface
pumps; § 250.609 Well-workover structures on
(j) Through-tubing logging fixed platforms.
(diagnostics); Derricks, masts, substructures, and
(k) Wireline fishing; and related equipment shall be selected, de-
(l) Setting and retrieving other sub- signed, installed, used, and maintained
surface flow-control devices. so as to be adequate for the potential
Workover operations mean the work loads and conditions of loading that
conducted on wells after the initial may be encountered during the oper-
completion for the purpose of main- ations proposed. Prior to moving a
taining or restoring the productivity of well-workover rig or well-servicing
a well. equipment onto a platform, the lessee
shall determine the structural capa-
§ 250.602 [Reserved] bility of the platform to safely support
§ 250.603 Emergency shutdown system. the equipment and proposed oper-
ations, taking into consideration the
When well-workover operations are corrosion protection, age of the plat-
conducted on a well with the tree re- form, and previous stresses to the plat-
moved, an emergency shutdown system form.
(ESD) manually controlled station
shall be installed near the driller’s con- § 250.610 Diesel engine air intakes.
sole or well-servicing unit operator’s
You must equip diesel engine air in-
work station, except when there is no
takes with a device to shut down the
other hydrocarbon-producing well or
diesel engine in the event of runaway.
other hydrocarbon flow on the plat-
Diesel engines that are continuously
form.
attended must be equipped with re-
§ 250.604 Hydrogen sulfide. motely operated, manual, or automatic
shutdown devices. Diesel engines that
When a well-workover operation is are not continuously attended must be
conducted in zones known to contain equipped with automatic shutdown de-
hydrogen sulfide (H2S) or in zones vices.
where the presence of H2S is unknown
(as defined in § 250.490 of this part), the [81 FR 36149, June 6, 2016]
lessee shall take appropriate pre-
cautions to protect life and property on § 250.611 Traveling-block safety de-
the platform or rig, including but not vice.
limited to operations such as blowing You must equip all units being used
the well down, dismantling wellhead for well-workover operations that have
equipment and flow lines, circulating both a traveling block and a crown
the well, swabbing, and pulling tubing, block with a safety device that is de-
pumps and packers. The lessee shall signed to prevent the traveling block
comply with the requirements in from striking the crown block. You
125
§ 250.612 30 CFR Ch. II (7–1–18 Edition)
must check the device for proper oper- (c) The following additional informa-
ation weekly and after each drill-line tion shall be submitted with Form
slipping operation. You must enter the BSEE–0124 if completing to a new zone
results of the operational check in the is proposed:
operations log. (1) Reason for abandonment of
present producing zone including sup-
[81 FR 36149, June 6, 2016]
portive well test data, and
§ 250.612 Field well-workover rules. (2) A statement of anticipated or
known pressure data for the new zone.
When geological and engineering in- (d) Within 30 days after completing
formation available in a field enables the well-workover operation, except
the District Manager to determine spe- routine operations, Form BSEE–0124,
cific operating requirements, field Application for Permit to Modify, shall
well-workover rules may be established be submitted to the District Manager,
on the District Manager’s initiative or showing the work as performed. In the
in response to a request from a lessee. case of a well-workover operation re-
Such rules may modify the specific resulting in the initial recompletion of a
quirements of this subpart. After field well into a new zone, a Form BSEE–
well-workover rules have been estab- 0125, End of Operations Report, shall be
lished, well-workover operations in the submitted to the District Manager and
field shall be conducted in accordance shall include a new schematic of the
with such rules and other requirements tubing subsurface equipment if any
of this subpart. Field well-workover subsurface equipment has been
rules may be amended or canceled for changed.
cause at any time upon the initiative
of the District Manager or upon the re- [76 FR 64462, Oct. 18, 2011, as amended at 77
FR 50895, Aug. 22, 2012; 81 FR 26021, Apr. 29,
quest of a lessee. 2016]
§ 250.613 Approval and reporting for § 250.614 Well-control fluids, equip-
well-workover operations. ment, and operations.
(a) No well-workover operation ex- The following requirements apply
cept routine ones, as defined in § 250.601 during all well-workover operations
of this part, shall begin until the lessee with the tree removed:
receives written approval from the Dis- (a) Well-control fluids, equipment,
trict Manager. Approval for these oper- and operations shall be designed, uti-
ations must be requested on Form lized, maintained, and/or tested as nec-
BSEE–0124, Application for Permit to essary to control the well in foresee-
Modify. able conditions and circumstances, in-
(b) You must submit the following cluding subfreezing conditions. The
with Form BSEE–0124: well shall be continuously monitored
(1) A brief description of the well- during well-workover operations and
workover procedures to be followed, a shall not be left unattended at anytime
statement of the expected surface pres- unless the well is shut in and secured.
sure, and type and weight of workover (b) When coming out of the hole with
fluids; drill pipe or a workover string, the an-
(2) When changes in existing sub- nulus shall be filled with well-control
surface equipment are proposed, a sche- fluid before the change in such fluid
matic drawing of the well showing the level decreases the hydrostatic pres-
zone proposed for workover and the sure 75 pounds per square inch (psi) or
workover equipment to be used; every five stands of drill pipe or
(3) All information required in workover string, whichever gives a
§ 250.731. lower decrease in hydrostatic pressure.
(4) Where the well-workover is in a The number of stands of drill pipe or
zone known to contain H2S or a zone workover string and drill collars that
where the presence of H2S is unknown, may be pulled prior to filling the hole
information pursuant to § 250.490 of this and the equivalent well-control fluid
part; and volume shall be calculated and posted

(5) Payment of the service fee listed near the operator’s station. A mechan-
in § 250.125. ical, volumetric, or electronic device
126
for measuring the amount of well-con- include both a visual and an audible
trol fluid required to fill the hold shall warning device.
be utilized. [76 FR 64462, Oct. 18, 2011, as amended at 77
(c) The following well-control-fluid FR 50895, Aug. 22, 2012; 81 FR 26021, Apr. 29,
equipment shall be installed, main- 2016]
tained, and utilized:
(1) A fill-up line above the uppermost § 250.615 [Reserved]
BOP; § 250.616 Coiled tubing and snubbing
(2) A well-control, fluid-volume operations.
measuring device for determining fluid
(a) For coiled tubing operations with
volumes when filling the hole on trips; the production tree in place, you must
and meet the following minimum require-
(3) A recording mud-pit-level indi- ments for the BOP system:
cator to determine mud-pit-volume (1) BOP system components must be
gains and losses. This indicator shall in the following order from the top
down:
BOP system when expected BOP system when expected BOP system for wells with returns taken
surface pressures are less than or equal surface pressures are greater than 3,500 through an outlet on the BOP stack
to 3,500 psi psi
Stripper or annular-type well control com- Stripper or annular-type well control Stripper or annular-type well control
ponent. component. component.
Hydraulically-operated blind rams ............. Hydraulically-operated blind rams ........... Hydraulically-operated blind rams
Hydraulically-operated shear rams ............ Hydraulically-operated shear rams ......... Hydraulically-operated shear rams.
Kill line inlet ............................................... Kill line inlet ............................................. Kill line inlet.
Hydraulically-operated two-way slip rams Hydraulically-operated two-way slip rams Hydraulically-operated two-way slip
rams.
Hydraulically-operated pipe rams.
Hydraulically-operated pipe rams .............. Hydraulically-operated pipe rams ............ A flow tee or cross.
Hydraulically-operated blind-shear rams. Hydraulically-operated pipe rams.
These rams should be located as Hydraulically-operated blind-shear rams
close to the tree as practical. on wells with surface pressures
>3,500 psi. As an option, the pipe
rams can be placed below the blind-
shear rams. The blind-shear rams
should be located as close to the tree
as practical.
(2) You may use a set of hydrau- manual valve instead of the remotely
lically-operated combination rams for controlled valve on the kill line if you
the blind rams and shear rams. install a check valve between the two
(3) You may use a set of hydrau- full-opening manual valves and the
lically-operated combination rams for pump or manifold. The valves must
the hydraulic two-way slip rams and have a working pressure rating equal
the hydraulically-operated pipe rams. to or greater than the working pres-
(4) You must attach a dual check sure rating of the connection to which
valve assembly to the coiled tubing they are attached, and you must in-
connector at the downhole end of the stall them between the well control
coiled tubing string for all coiled tub- stack and the choke or kill line. For
ing well-workover operations. If you operations with expected surface pres-
plan to conduct operations without sures greater than 3,500 psi, the kill
downhole check valves, you must de- line must be connected to a pump or
scribe alternate procedures and equip- manifold. You must not use the kill
ment in Form BSEE–0124, Application line inlet on the BOP stack for taking
for Permit to Modify and have it ap- fluid returns from the wellbore.
proved by the District Manager. (6) You must have a hydraulic-actu-
(5) You must have a kill line and a ating system that provides sufficient
separate choke line. You must equip accumulator capacity to close-open-
each line with two full-opening valves close each component in the BOP
and at least one of the valves must be stack. This cycle must be completed
remotely controlled. You may use a with at least 200 psi above the pre-
127
§§ 250.617–250.618 30 CFR Ch. II (7–1–18 Edition)
charge pressure, without assistance installed and using small tubing as the
from a charging system. work string. A wrench to fit the work-
(7) All connections used in the sur- string safety valve shall be readily
face BOP system from the tree to the available. Proper connections shall be
uppermost required ram must be readily available for inserting valves in
flanged, including the connections be- the work string. The full-opening safe-
tween the well control stack and the ty valve is not required for coiled tub-
first full-opening valve on the choke ing or snubbing operations.
line and the kill line. [76 FR 64462, Oct. 18, 2011. Redesignated at 77
(b) The minimum BOP-system com- FR 50895, Aug. 22, 2012, as amended at 81 FR
ponents for well-workover operations 26021, Apr. 29, 2016]
with the tree in place and performed by
moving tubing or drill pipe in or out of §§ 250.617–250.618 [Reserved]
a well under pressure utilizing equip-
ment specifically designed for that pur- § 250.619 Tubing and wellhead equip-
pose, i.e., snubbing operations, shall in- ment.
clude the following: The lessee shall comply with the fol-
(1) One set of pipe rams hydraulically lowing requirements during well-
operated, and workover operations with the tree re-
(2) Two sets of stripper-type pipe moved:
rams hydraulically operated with spac- (a) No tubing string shall be placed in
er spool. service or continue to be used unless
(c) An inside BOP or a spring-loaded, such tubing string has the necessary
back-pressure safety valve and an es- strength and pressure integrity and is
sentially full-opening, work-string otherwise suitable for its intended use.
safety valve in the open position shall (b) When reinstalling the tree, you
be maintained on the rig floor at all must:
times during well-workover operations (1) Equip wells to monitor for casing
when the tree is removed or during pressure according to the following
well-workover operations with the tree chart:
If you have . . . you must equip . . . so you can monitor . . .
(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).
(iii) hybrid* wells, the surface wellhead, all annuli at the surface (A and B riser annuli). If the produc-
tion 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 man- (e) If you pull and reinstall packers
agement requirements in subpart E of and bridge plugs, you must meet the
this part. following requirements:
(c) Wellhead, tree, and related equip- (1) All permanently installed packers
ment shall have a pressure rating and bridge plugs must comply with API
greater than the shut-in tubing pres- Spec. 11D1 (as incorporated by ref-
sure and shall be designed, installed, erence in § 250.198);
used, maintained, and tested so as to (2) The production packer must be
achieve and maintain pressure control. set at a depth that will allow for a col-
The tree shall be equipped with a min- umn of weighted fluids to be placed
imum of one master valve and one sur- above the packer that will exert a hy-
face safety valve in the vertical run of drostatic force greater than or equal to
the tree when it is reinstalled. the force created by the reservoir pres-
(d) Subsurface safety equipment sure below the packer;
must be installed, maintained, and (3) The production packer must be

tested in compliance with the applica- set as close as practically possible to
ble sections in §§ 250.810 through 250.839. the perforated interval; and
128
(4) The production packer must be § 250.701 May I use alternate proce-
set at a depth that is within the cedures or equipment during oper-
mented interval of the selected casing ations?
section. You may use alternate procedures or
(f) Your APM must include a descrip- equipment during operations after re-
tion and calculations for how you de- ceiving approval as described in
termined the production packer setting § 250.141. You must identify and discuss
depth. your proposed alternate procedures or
[76 FR 64462, Oct. 18, 2011. Redesignated at 77 equipment in your Application for Per-
FR 50895, Aug. 22, 2012, as amended at 81 FR mit to Drill (APD) (Form BSEE–0123)
26021, Apr. 29, 2016; 81 FR 61918, Sept. 7, 2016] (see § 250.414(h)) or your Application for
Permit to Modify (APM) (Form BSEE–
§ 250.620 Wireline operations. 0124). Procedures for obtaining ap-
The lessee shall comply with the fol- proval of alternate procedures or equip-
lowing requirements during routine, as ment are described in § 250.141.
defined in § 250.601 of this part, and
§ 250.702 May I obtain departures from
nonroutine wireline workover oper- these requirements?
ations:
(a) Wireline operations shall be con- You may apply for a departure from
ducted so as to minimize leakage of these requirements as described in
well fluids. Any leakage that does § 250.142. Your request must include a
occur shall be contained to prevent pol- justification showing why the depar-
lution. ture is necessary. You must identify
(b) All wireline perforating oper- and discuss the departure you are re-
ations and all other wireline operations questing in your APD (see § 250.414(h))
where communication exists between or your APM.
the completed hydrocarbon-bearing
§ 250.703 What must I do to keep wells
zone(s) and the wellbore shall use a lu- under control?
bricator assembly containing at least
one wireline valve. You must take the necessary pre-
(c) When the lubricator is initially cautions to keep wells under control at
installed on the well, it shall be suc- all times, including:
cessfully pressure tested to the ex- (a) Use recognized engineering prac-
pected shut-in surface pressure. tices to reduce risks to the lowest level
practicable when monitoring and eval-
[76 FR 64462, Oct. 18, 2011. Redesignated at 77 uating well conditions and to minimize
FR 50895, Aug. 22, 2012] the potential for the well to flow or
kick;
Subpart G—Well Operations and (b) Have a person onsite during oper-
Equipment ations who represents your interests
and can fulfill your responsibilities;
SOURCE: 81 FR 26022, Apr. 29, 2016, unless (c) Ensure that the toolpusher, opera-
otherwise noted. tor’s representative, or a member of
the rig crew maintains continuous sur-
GENERAL REQUIREMENTS veillance on the rig floor from the be-
ginning of operations until the well is
§ 250.700 What operations and equip- completed or abandoned, unless you
ment does this subpart cover? have secured the well with blowout
This subpart covers operations and preventers (BOPs), bridge plugs, ce-
equipment associated with drilling, ment plugs, or packers;
completion, workover, and decommis- (d) Use personnel trained according
sioning activities. This subpart in- to the provisions of subparts O and S of
cludes regulations applicable to drill- this part;
ing, completion, workover, and decom- (e) Use and maintain equipment and
missioning activities in addition to ap- materials necessary to ensure the safe-
plicable regulations contained in sub- ty and protection of personnel, equip-

parts D, E, F, and Q of this part unless ment, natural resources, and the envi-
explicitly stated otherwise. ronment; and
129
§ 250.710 30 CFR Ch. II (7–1–18 Edition)
(f) Use equipment that has been de- drilling, and tripping. The same drill
signed, tested, and rated for the max- may not be repeated consecutively
imum environmental and operational with the same crew.
conditions to which it may be exposed (b) Recordkeeping requirements. For
while in service. each drill, you must record the fol-
lowing in the daily report:
RIG REQUIREMENTS (1) Date, time, and type of drill con-
ducted;
§ 250.710 What instructions must be
given to personnel engaged in well (2) The amount of time it took to be
operations? ready to close the diverter or use each
well-control component of BOP system;
Prior to engaging in well operations,
and
personnel must be instructed in:
(3) The total time to complete the en-
(a) Hazards and safety requirements.
tire drill.
You must instruct your personnel re-
(c) A BSEE ordered drill. A BSEE rep-
garding the safety requirements for the
resentative may require you to conduct
operations to be performed, possible
a well-control drill during a BSEE in-
hazards to be encountered, and general
spection. The BSEE representative will
safety considerations to protect per-
sonnel, equipment, and the environ- consult with your onsite representative
ment as required by subpart S of this before requiring the drill.
part. The date and time of safety meet- § 250.712 What rig unit movements
ings must be recorded and available at must I report?
the facility for review by BSEE rep-
resentatives. (a) You must report the movement of
(b) Well control. You must prepare a all rig units on and off locations to the
well-control plan for each well. Each District Manager using Form BSEE–
well-control plan must contain instruc- 0144, Rig Movement Notification Re-
tions for personnel about the use of port. Rig units include MODUs, plat-
each well-control component of your form rigs, snubbing units, wire-line
BOP, procedures that describe how per- units used for non-routine operations,
sonnel will seal the wellbore and shear and coiled tubing units. You must in-
pipe before maximum anticipated sur- form the District Manager 24 hours be-
face pressure (MASP) conditions are fore:
exceeded, assignments for each crew (1) The arrival of a rig unit on loca-
member, and a schedule for completion tion;
of each assignment. You must keep a (2) The movement of a rig unit to an-
copy of your well-control plan on the other slot. For movements that will
rig at all times, and make it available occur less than 24 hours after initially
to BSEE upon request. You must post a moving onto location (e.g., coiled tub-
copy of the well-control plan on the rig ing and batch operations), you may in-
floor. clude your anticipated movement
schedule on Form BSEE–0144; or
§ 250.711 What are the requirements (3) The departure of a rig unit from
for well-control drills? the location.
You must conduct a weekly well-con- (b) You must provide the District
trol drill with all personnel engaged in Manager with the rig name, lease num-
well operations. Your drill must famil- ber, well number, and expected time of
iarize personnel engaged in well oper- arrival or departure.
ations with their roles and functions so (c) If a MODU or platform rig is to be
that they can perform their duties warm or cold stacked, you must inform
promptly and efficiently as outlined in the District Manager:
the well-control plan required by (1) Where the MODU or platform rig
§ 250.710. is coming from;
(a) Timing of drills. You must conduct (2) The location where the MODU or
each drill during a period of activity platform rig will be positioned;
that minimizes the risk to operations. (3) Whether the MODU or platform
The timing of your drills must cover a rig will be manned or unmanned; and
range of different operations, including (4) If the location for stacking the
drilling with a diverter, on-bottom MODU or platform rig changes.
130
(d) Prior to resuming operations must submit a plat of the rig’s anchor
after stacking, you must notify the ap- pattern approved in your EP, DPP, or
propriate District Manager of any con- DOCD in your APD or APM.
struction, repairs, or modifications as- (c) For frontier areas. (1) If the design
sociated with the drilling package of the MODU you plan to use in a fron-
made to the MODU or platform rig. tier area is unique or has not been
(e) If a drilling rig is entering OCS proven for use in the proposed environ-
waters, you must inform the District ment, the District Manager may re-
Manager where the drilling rig is com- quire you to submit a third-party re-
ing from. view of the MODU design. If required,
(f) If you change your anticipated you must obtain a third-party review
date for initially moving on or off loca- of your MODU similar to the process
tion by more than 24 hours, you must outlined in §§ 250.915 through 250.918.
submit an updated Form BSEE–0144, You may submit this information be-
Rig Movement Notification Report. fore submitting an APD or APM.
(2) If you plan to conduct operations
§ 250.713 What must I provide if I plan in a frontier area, you must have a
to use a mobile offshore drilling contingency plan that addresses design
unit (MODU) for well operations? and operating limitations of the
If you plan to use a MODU for well MODU. Your plan must identify the ac-
operations, you must provide: tions necessary to maintain safety and
(a) Fitness requirements. Information prevent damage to the environment.
and data to demonstrate the MODU’s Actions must include the suspension,
capability to perform at the proposed curtailment, or modification of oper-
location. This information must in- ations to remedy various operational
clude the maximum environmental and or environmental situations (e.g., ves-
operational conditions that the MODU sel motion, riser offset, anchor ten-
is designed to withstand, including the sions, wind speed, wave height, cur-
minimum air gap necessary for both rents, icing or ice-loading, settling, tilt
hurricane and non-hurricane seasons. If or lateral movement, resupply capa-
sufficient environmental information bility).
and data are not available at the time (d) Additional documentation. You
you submit your APD or APM, the Dis- must provide the current Certificate of
trict Manager may approve your APD Inspection (for U.S.-flag vessels) or
or APM, but require you to collect and Certificate of Compliance (for foreign-
report this information during oper- flag vessels) from the USCG and Cer-
ations. Under this circumstance, the tificate of Classification. You must
District Manager may revoke the ap- also provide current documentation of
proval of the APD or APM if informa- any operational limitations imposed by
tion collected during operations shows an appropriate classification society.
that the MODU is not capable of per- (e) Dynamically positioned MODU. If
forming at the proposed location. you use a dynamically positioned
(b) Foundation requirements. Informa- MODU, you must include in your APD
tion to show that site-specific soil and or APM your contingency plan for
oceanographic conditions are capable moving off location in an emergency
of supporting the proposed bottom- situation. At a minimum, your plan
founded MODU. If you provided suffi- must address emergency events caused
cient site-specific information in your by storms, currents, station-keeping
EP, DPP, or DOCD submitted to BOEM failures, power failures, and losses of
for that well location and conditions, well control. The District Manager
you may reference that information. may require your plan to include addi-
The District Manager may require you tional events that may require move-
to conduct additional surveys and soil ment of the MODU and other informa-
borings before approving the APD or tion needed to clarify or further ad-
APM if additional information is need- dress how the MODU will respond to
ed to make a determination that the emergencies or other events.
conditions are capable of supporting (f) Inspection of MODU. The MODU

the MODU, or equipment installed on a must be available for inspection by the
subsea wellhead. For a moored rig, you District Manager before commencing
131
§ 250.714 30 CFR Ch. II (7–1–18 Edition)
operations and at any time during op- all times, and you must provide to
erations. BSEE real-time access to the GPS data
(g) Current monitoring. For water prior to and during each hurricane sea-
depths greater than 400 meters (1,312 son.
feet), you must include in your APD or (a) The GPS must be capable of moni-
APM: toring the position and tracking the
(1) A description of the specific cur- path in real-time if the MODU moves
rent speeds that will cause you to im- from its location during a severe
plement rig shutdown, move-off proce- storm.
dures, or both; and (b) You must install and protect the
(2) A discussion of the specific meas- tracking system’s equipment to mini-
ures you will take to curtail rig oper- mize the risk of the system being dis-
ations and move off location when such abled.
currents are encountered. You may use (c) You must place the GPS tran-
criteria, such as current velocities, sponders in different locations for re-
riser angles, watch circles, and remain- dundancy to minimize risk of system
ing rig power to describe when these failure.
procedures or measures will be imple- (d) Each GPS transponder must be
mented. capable of transmitting data for at
[81 FR 26022, Apr. 29, 2016, as amended at 81 least 7 days after a storm has passed.
FR 36150, June 6, 2016] (e) If the MODU is moved off location
in the event of a storm, you must im-
§ 250.714 Do I have to develop a mediately begin to record the GPS lo-
dropped objects plan? cation data.
If you use a floating rig unit in an (f) You must contact the Regional Of-
area with subsea infrastructure, you fice and allow real-time access to the
must develop a dropped objects plan MODU location data. When you con-
and make it available to BSEE upon tact the Regional Office, provide the
request. This plan must be updated as following:
the infrastructure on the seafloor (1) Name of the lessee and operator
changes. Your plan must include: with contact information;
(a) A description and plot of the path (2) MODU name;
the rig will take while running and (3) Initial date and time; and
pulling the riser; (4) How you will provide GPS real-
(b) A plat showing the location of time access.
any subsea wells, production equip-
ment, pipelines, and any other identi- WELL OPERATIONS
fied debris;
(c) Modeling of a dropped object’s § 250.720 When and how must I secure
a well?
path with consideration given to
metocean conditions for various mate- (a) Whenever you interrupt oper-
rial forms, such as a tubular (e.g., riser ations, you must notify the District
or casing) and box (e.g., BOP or tree); Manager. Before moving off the well,
(d) Communications, procedures, and you must have two independent bar-
delegated authorities established with riers installed, at least one of which
the production host facility to shut-in must be a mechanical barrier, as ap-
any active subsea wells, equipment, or proved by the District Manager. You
pipelines in the event of a dropped ob- must install the barriers at appropriate
ject; and depths within a properly cemented cas-
(e) Any additional information re- ing string or liner. Before removing a
quired by the District Manager as ap- subsea BOP stack or surface BOP stack
propriate to clarify, update, or evalu- on a mudline suspension well, you
ate your dropped objects plan. must conduct a negative pressure test
in accordance with § 250.721.
§ 250.715 Do I need a global posi- (1) The events that would cause you
tioning system (GPS) for all to interrupt operations and notify the
MODUs? District Manager include, but are not

All MODUs must have a minimum of limited to, the following:
two functioning GPS transponders at (i) Evacuation of the rig crew;
132
(ii) Inability to keep the rig on loca- quirements of paragraphs (a) and (b) of
tion; this section:
(iii) Repair to major rig or well-con- (1) If you move your drilling rig off a
trol equipment; or well prior to completion or permanent
(iv) Observed flow outside the well’s abandonment, you must ensure that
casing (e.g., shallow water flow or bub- any equipment left on, near, or in a
bling). wellbore that has penetrated below the
(2) The District Manager may ap- surface casing is positioned in a man-
prove alternate procedures or barriers,
ner to:
in accordance with § 250.141, if you do
(i) Protect the well head; and
not have time to install the required
barriers or if special circumstances (ii) Prevent or minimize the likeli-
occur. hood of compromising the down-hole
(b) Before you displace kill-weight integrity of the well or the effective-
fluid from the wellbore and/or riser, ness of the well plugs.
thereby creating an underbalanced (2) In areas of ice scour you must use
state, you must obtain approval from a well mudline cellar or an equivalent
the District Manager. To obtain ap- means of minimizing the risk of dam-
proval, you must submit with your age to the well head and wellbore.
APD or APM your reasons for dis- BSEE may approve an equivalent
placing the kill-weight fluid and pro- means that will meet or exceed the
vide detailed step-by-step written pro- level of safety and environmental pro-
cedures describing how you will safely tection provided by a mudline cellar if
displace these fluids. The step-by-step the operator can show that utilizing a
displacement procedures must address mudline cellar would compromise the
the following: stability of the rig, impede access to
(1) Number and type of independent the well head during a well control
barriers, as described in § 250.420(b)(3), event, or otherwise create operational
that are in place for each flow path risks.
that requires such barriers;
(2) Tests you will conduct to ensure [81 FR 26022, Apr. 29, 2016, as amended at 81
integrity of independent barriers; FR 46563, July 15, 2016]
(3) BOP procedures you will use while
displacing kill-weight fluids; and § 250.721 What are the requirements
(4) Procedures you will use to mon- for pressure testing casing and lin-
ers?
itor the volumes and rates of fluids en-
tering and leaving the wellbore. (a) You must test each casing string
(c) For Arctic OCS exploratory drill- that extends to the wellhead according
ing operations, in addition to the re- to the following table:
Casing type Minimum test pressure
(1) Drive or Structural, ................................................................. Not required.

(2) Conductor, excluding subsea wellheads, .............................. 250 psi.
(3) Surface, Intermediate, and Production, ................................. 70 percent of its minimum internal yield.
(b) You must test each drilling liner (d) The District Manager may ap-
and liner-top to a pressure at least prove or require other casing test pres-
equal to the anticipated leak-off pressures as appropriate under the cir-
sure of the formation below that liner cumstances to ensure casing integrity.
shoe, or subsequent liner shoes if set. (e) If you plan to produce a well, you
You must conduct this test before you must:
continue operations in the well. (1) For a well that is fully cased and
(c) You must test each production cemented, pressure test the entire well
liner and liner-top to a minimum of 500 to maximum anticipated shut-in tub-
psi above the formation fracture pres- ing pressure, not to exceed 70% of the
sure at the casing shoe into which the burst rating limit of the weakest com-
liner is lapped. ponent before perforating the casing or
liner; or
133
§ 250.722 30 CFR Ch. II (7–1–18 Edition)
(2) For an open-hole completion, tigation confirms that a failure oc-

pressure test the entire well to max- curred during the negative pressure
imum anticipated shut-in tubing pres- test, you must:
sure, not to exceed 70% of the burst (i) Correct the problem and imme-
rating limit of the weakest component diately notify the appropriate District
before you drill the open-hole section. Manager; and
(f) You may not resume operations (ii) Submit a description of the cor-
until you obtain a satisfactory pres- rective action taken and receive ap-
sure test. If the pressure declines more proval from the appropriate District
than 10 percent in a 30-minute test, or Manager for the retest.
if there is another indication of a leak, (7) You must have two barriers in
you must submit to the District Man- place, as described in § 250.420(b)(3), at
ager for approval your proposed plans any time and for any well, prior to per-
to re-cement, repair the casing or liner, forming the negative pressure test.
or run additional casing/liner to pro- (8) You must include documentation
vide a proper seal. Your submittal of the successful negative pressure test
must include a PE certification of your in the End-of-Operations Report (Form
proposed plans. BSEE–0125).
(g) You must perform a negative
pressure test on all wells that use a § 250.722 What are the requirements
subsea BOP stack or wells with for prolonged operations in a well?
mudline suspension systems. If wellbore operations continue with-
(1) You must perform a negative pres- in a casing or liner for more than 30
sure test on your final casing string or days from the previous pressure test of
liner. This test must be conducted the well’s casing or liner, you must:
after setting your second barrier just (a) Stop operations as soon as prac-
above the shoe track, but prior to con- ticable, and evaluate the effects of the
ducting any completion operations. prolonged operations on continued op-
(2) You must perform a negative pres- erations and the life of the well. At a
sure test prior to unlatching the BOP minimum, you must:
at any point in the well. The negative (1) Evaluate the well casing with a
pressure test must be performed on pressure test, caliper tool, or imaging
those components, at a minimum, that tool. On a case-by-case basis, the Dis-
will be exposed to the negative dif- trict Manager may require a specific
ferential pressure that will occur when method of evaluation of the effects on
the BOP is disconnected. the well casing of prolonged oper-
(3) The District Manager may require ations; and
you to perform additional negative (2) Report the results of your evalua-
pressure tests on other casing strings tion to the District Manager and ob-
or liners (e.g., intermediate casing tain approval of those results before re-
string or liner) or on wells with a sur- suming operations. Your report must
face BOP stack as appropriate to dem- include calculations that show the
onstrate casing or liner integrity. well’s integrity is above the minimum
(4) You must submit for approval safety factors, if an imaging tool or
with your APD or APM, test proce- caliper is used.
dures and criteria for a successful neg- (b) If well integrity has deteriorated
ative pressure test. If any of your test to a level below minimum safety fac-
procedures or criteria for a successful tors, you must:
test change, you must submit for ap- (1) Obtain approval from the District
proval the changes in a revised APD or Manager to begin repairs or install ad-
APM. ditional casing. To obtain approval,
(5) You must document all your test you must also provide a PE certifi-
results and make them available to cation showing that he or she reviewed
BSEE upon request. and approved the proposed changes;
(6) If you have any indication of a (2) Repair the casing or run another
failed negative pressure test, such as, casing string; and
but not limited to, pressure buildup or (3) Perform a pressure test after the
observed flow, you must immediately repairs are made or additional casing is
investigate the cause. If your inves- installed and report the results to the
134
District Manager as specified in be equipped with a back pressure valve

§ 250.721. prior to removing the BOP system and
installing the production tree.
§ 250.723 What additional safety meas- (e) Coiled tubing units, snubbing
ures must I take when I conduct op- units, or wireline units may be moved
erations on a platform that has pro-
ducing wells or has other hydro- onto and off of a platform without
carbon flow? shutting in wells.
You must take the following safety § 250.724 What are the real-time moni-
measures when you conduct operations toring requirements?
with a rig unit or lift boat on or
(a) No later than April 29, 2019, when
jacked-up over a platform with pro-
conducting well operations with a
ducing wells or that has other hydro-
subsea BOP or with a surface BOP on a
carbon flow:
floating facility, or when operating in
(a) The movement of rig units and re-
an high pressure high temperature
lated equipment on and off a platform
(HPHT) environment, you must gather
or from well to well on the same plat-
and monitor real-time well data using
form, including rigging up and rigging
an independent, automatic, and contin-
down, must be conducted in a safe
manner; uous monitoring system capable of re-
(b) You must install an emergency cording, storing, and transmitting data
shutdown station for the production regarding the following:
system near the rig operator’s console; (1) The BOP control system;
(c) You must shut-in all producible (2) The well’s fluid handling system
wells located in the affected wellbay on the rig; and
below the surface and at the wellhead (3) The well’s downhole conditions
when: with the bottom hole assembly tools (if
(1) You move a rig unit or related any tools are installed).
equipment on and off a platform. This (b) You must transmit these data as
includes rigging up and rigging down they are gathered, barring unforesee-
activities within 500 feet of the affected able or unpreventable interruptions in
platform; transmission, and have the capability
(2) You move or skid a rig unit be- to monitor the data onshore, using
tween wells on a platform; or qualified personnel in accordance with
(3) A MODU or lift boat moves within a real-time monitoring plan, as pro-
500 feet of a platform. You may resume vided in paragraph (c) of this section.
production once the MODU or lift boat Onshore personnel who monitor real-
is in place, secured, and ready to begin time data must have the capability to
operations. contact rig personnel during oper-
(d) All wells in the same well-bay ations. After operations, you must pre-
which are capable of producing hydro- serve and store these data onshore for
carbons must be shut-in below the sur- recordkeeping purposes as required in
face with a pump-through-type tubing §§ 250.740 and 250.741. You must provide
plug and at the surface with a closed BSEE with access to your designated
master valve prior to moving rig units real-time monitoring data onshore
and related equipment, unless other- upon request. You must include in your
wise approved by the District Manager. APD a certification that you have a
(1) A closed surface-controlled sub- real-time monitoring plan that meets
surface safety valve of the pump- the criteria in paragraph (c) of this sec-
through-type may be used in lieu of the tion.
pump-through-type tubing plug pro- (c) You must develop and implement
vided that the surface control has been a real-time monitoring plan. Your real-
locked out of operation. time monitoring plan, and all real-time
(2) The well to which a rig unit or re- monitoring data, must be made avail-
lated equipment is to be moved must able to BSEE upon request. Your real-
be equipped with a back-pressure valve time monitoring plan must include the
prior to removing the tree and install- following:
ing and testing the BOP system. (1) A description of your real-time
(3) The well from which a rig unit or monitoring capabilities, including the
related equipment is to be moved must types of the data collected;
135
§ 250.730 30 CFR Ch. II (7–1–18 Edition)
(2) A description of how your real- wellbore that the BOP system may en-
time monitoring data will be trans- counter. Your BOP system must meet
mitted onshore during operations, how the following requirements:
the data will be labeled and monitored (1) The BOP requirements of API
by qualified onshore personnel, and Standard 53 (incorporated by reference
how it will be stored onshore; in § 250.198) and the requirements of
(3) A description of your procedures §§ 250.733 through 250.739. If there is a
for providing BSEE access, upon re- conflict between API Standard 53, and
quest, to your real-time monitoring the requirements of this subpart, you
data including, if applicable, the loca- must follow the requirements of this
tion of any onshore data monitoring or subpart.
data storage facilities; (2) Those provisions of the following
(4) The qualifications of the onshore industry standards (all incorporated by
personnel monitoring the data; reference in § 250.198) that apply to BOP
(5) Your procedures for, and methods systems:
of, communication between rig per-
(i) ANSI/API Spec. 6A;
sonnel and the onshore monitoring per-
sonnel; and (ii) ANSI/API Spec. 16A;
(6) Actions to be taken if you lose (iii) ANSI/API Spec. 16C;
any real-time monitoring capabilities (iv) API Spec. 16D; and
or communications between rig and on- (v) ANSI/API Spec. 17D.
shore personnel, and a protocol for how (3) For surface and subsea BOPs, the
you will respond to any significant and/ pipe and variable bore rams installed
or prolonged interruption of moni- in the BOP stack must be capable of ef-
toring or onshore-offshore communica- fectively closing and sealing on the tu-
tions, including your protocol for noti- bular body of any drill pipe,
fying BSEE of any significant and/or workstring, and tubing (excluding tub-
prolonged interruptions. ing with exterior control lines and flat
packs) in the hole under MASP, as de-
BLOWOUT PREVENTER (BOP) SYSTEM fined for the operation, with the pro-
REQUIREMENTS posed regulator settings of the BOP
§ 250.730 What are the general require- control system.
ments for BOP systems and system (4) The current set of approved sche-
components? matic drawings must be available on
(a) You must ensure that the BOP the rig and at an onshore location. If
system and system components are de- you make any modifications to the
signed, installed, maintained, in- BOP or control system that will
spected, tested, and used properly to change your BSEE-approved schematic
ensure well control. The working-pres- drawings, you must suspend operations
sure rating of each BOP component until you obtain approval from the Dis-
(excluding annular(s)) must exceed trict Manager.
MASP as defined for the operation. For (b) You must ensure that the design,
a subsea BOP, the MASP must be fabrication, maintenance, and repair of
taken at the mudline. The BOP system your BOP system is in accordance with
includes the BOP stack, control sys- the requirements contained in this
tem, and any other associated sys- part, Original Equipment Manufactur-
tem(s) and equipment. The BOP system ers (OEM) recommendations unless
and individual components must be otherwise directed by BSEE, and recog-
able to perform their expected func- nized engineering practices. The train-
tions and be compatible with each ing and qualification of repair and
other. Your BOP system (excluding maintenance personnel must meet or
casing shear) must be capable of clos- exceed any OEM training recommenda-
ing and sealing the wellbore at all tions unless otherwise directed by
times, including under anticipated BSEE.
flowing conditions for the specific well (c) You must follow the failure re-
conditions, without losing ram closure porting procedures contained in API
time and sealing integrity due to the Standard 53, ANSI/API Spec. 6A, and
corrosiveness, volume, and ANSI/API Spec 16A (all incorporated by
abrasiveness of any fluids in the reference in § 250.198), and:
136
(1) You must provide a written notice tem. Such quality management system
of equipment failure to the Chief, Of- must be certified by an entity that
fice of Offshore Regulatory Programs, meets the requirements of ISO 17011.
and the manufacturer of such equip- (1) BSEE may consider accepting
ment within 30 days after the discovery equipment manufactured under quality
and identification of the failure. A fail- assurance programs other than API
ure is any condition that prevents the Spec. Q1, provided you submit a re-
equipment from meeting the functional quest to the Chief, Office of Offshore
specification. Regulatory Programs for approval,
(2) You must ensure that an inves- containing relevant information about
tigation and a failure analysis are per- the alternative program.
formed within 120 days of the failure to (2) You must submit this request to
determine the cause of the failure. You the Chief, Office of Offshore Regulatory
must also ensure that the results and
Programs; Bureau of Safety and Envi-
any corrective action are documented.
ronmental Enforcement; 45600 Wood-
If the investigation and analysis are
land Road, Sterling, Virginia 20166.
performed by an entity other than the
manufacturer, you must ensure that § 250.731 What information must I sub-
the Chief, Office of Offshore Regulatory mit for BOP systems and system
Programs and the manufacturer re- components?
ceive a copy of the analysis report.
(3) If the equipment manufacturer For any operation that requires the
notifies you that it has changed the de- use of a BOP, you must include the in-
sign of the equipment that failed or if formation listed in this section with
you have changed operating or repair your applicable APD, APM, or other
procedures as a result of a failure, then submittal. You are required to submit
you must, within 30 days of such this information only once for each
changes, report the design change or well, unless the information changes
modified procedures in writing to the from what you provided in an earlier
Chief, Office of Offshore Regulatory approved submission or you have
Programs. moved off location from the well. After
(4) You must send the reports re- you have submitted this information
quired in this paragraph to: Chief, Of- for a particular well, subsequent APMs
fice of Offshore Regulatory Programs; or other submittals for the well should
Bureau of Safety and Environmental reference the approved submittal con-
Enforcement; 45600 Woodland Road, taining the information required by
Sterling, VA 20166. this section and confirm that the infor-
(d) If you plan to use a BOP stack mation remains accurate and that you
manufactured after the effective date have not moved off location from that
of this regulation, you must use one well. If the information changes or you
manufactured pursuant to an API have moved off location from the well,
Spec. Q1 (as incorporated by reference you must submit updated information
in § 250.198) quality management sys- in your next submission.
You must submit: Including:
(a) A complete description of the BOP system and (1) Pressure ratings of BOP equipment;
system components,
(2) Proposed BOP test pressures (for subsea BOPs, include both surface
and corresponding subsea pressures);
(3) Rated capacities for liquid and gas for the fluid-gas separator system;
(4) Control fluid volumes needed to close, seal, and open each component;
(5) Control system pressure and regulator settings needed to achieve an
effective seal of each ram BOP under MASP as defined for the oper-
ation;
(6) Number and volume of accumulator bottles and bottle banks (for subsea
BOP, include both surface and subsea bottles);
(7) Accumulator pre-charge calculations (for subsea BOP, include both sur-
face and subsea calculations);
(8) All locking devices; and
(9) Control fluid volume calculations for the accumulator system (for a
subsea BOP system, include both the surface and subsea volumes).
(b) Schematic drawings, ......................................... (1) The inside diameter of the BOP stack;
(2) Number and type of preventers (including blade type for shear ram(s));
137
§ 250.732 30 CFR Ch. II (7–1–18 Edition)
(3) All locking devices;

(4) Size range for variable bore ram(s);
(5) Size of fixed ram(s);
(6) All control systems with all alarms and set points labeled, including
pods;
(7) Location and size of choke and kill lines (and gas bleed line(s) for
subsea BOP);
(8) Associated valves of the BOP system;
(9) Control station locations; and
(10) A cross-section of the riser for a subsea BOP system showing number,
size, and labeling of all control, supply, choke, and kill lines down to the
BOP.
(c) Certification by a BSEE-approved verification Verification that:
organization (BAVO), (1) Test data demonstrate the shear ram(s) will shear the drill pipe at the
water depth as required in § 250.732;
(2) The BOP was designed, tested, and maintained to perform under the
maximum environmental and operational conditions anticipated to occur
at the well; and
(3) The accumulator system has sufficient fluid to operate the BOP system
without assistance from the charging system.
(d) Additional certification by a BAVO, if you use a Verification that:
subsea BOP, a BOP in an HPHT environment (1) The BOP stack is designed and suitable for the specific equipment on
as defined in § 250.807, or a surface BOP on a the rig and for the specific well design;
floating facility, (2) The BOP stack has not been compromised or damaged from previous
service; and
(3) The BOP stack will operate in the conditions in which it will be used.
(e) If you are using a subsea BOP, descriptions of A listing of the functions with their sequences and timing.
autoshear, deadman, and emergency dis-
connect sequence (EDS) systems,
(f) Certification stating that the MIA Report re-
quired in § 250.732(d) has been submitted with-
in the past 12 months for a subsea BOP, a BOP
being used in an HPHT environment as defined
in § 250.807, or a surface BOP on a floating fa-
cility.
§ 250.732 What are the BSEE-approved (2) The independent third-party must
verification organization (BAVO) be a technical classification society, or
requirements for BOP systems and a licensed professional engineering
system components? firm, or a registered professional engi-
(a) BSEE will maintain a list of neer capable of providing the certifi-
BSEE-approved verification organiza- cations, verifications, and reports re-
tions (BAVOs) on its public website quired under paragraph (a)(1) of this
that you must use to satisfy any provi- section.
sion in this subpart that requires a (3) For an organization to become a
BAVO certification, verification, re- BAVO, it must submit the following in-
port, or review. You must comply with formation to the Chief, Office of Off-
all requirements in this subpart for shore Regulatory Programs; Bureau of
BAVO certification, verification, or re- Safety and Environmental Enforce-
porting no later than 1 year from the ment; 45600 Woodland Road, Sterling,
date BSEE publishes a list of BAVOs. Virginia, 20166, for BSEE review and
(1) Until such time as you use a approval:
BAVO to perform the actions that this (i) Previous experience in
subpart requires to be performed by a verification or in the design, fabrica-
BAVO, but not after 1 year from the tion, installation, repair, or major
date BSEE publishes a list of BAVOs, modification of BOPs and related sys-
you must use an independent third- tems and equipment;
party meeting the criteria specified in (ii) Technical capabilities;
paragraph (a)(2) of this section to pre- (iii) Size and type of organization;
pare certifications, verifications, and (iv) In-house availability of, or access
reports as required by §§ 250.731(c) and to, appropriate technology. This should

(d), 250.732 (b) and (c), 250.734(b)(1), include computer programs, hardware,
250.738(b)(4), and 250.739(b). and testing materials and equipment;
138
(v) Ability to perform the (b) Prior to beginning any operation

verification functions for projects con- requiring the use of any BOP, you must
sidering current commitments; submit verification by a BAVO and
(vi) Previous experience with BSEE supporting documentation as required
requirements and procedures; and by this paragraph to the appropriate
(vii) Any additional information that District Manager and Regional Super-
may be relevant to BSEE’s review. visor.
You must submit verification and documentation That:
related to:
(1) Shear testing, .................................................... (i) Demonstrates that the BOP will shear the drill pipe and any electric-,
wire-, and slick-line to be used in the well, no later than April 30, 2018;
(ii) Demonstrates the use of test protocols and analysis that represent rec-
ognized engineering practices for ensuring the repeatability and repro-
ducibility of the tests, and that the testing was performed by a facility that
meets generally accepted quality assurance standards;
(iii) Provides a reasonable representation of field applications, taking into
consideration the physical and mechanical properties of the drill pipe;
(iv) Ensures testing was performed on the outermost edges of the shearing
blades of the shear ram positioning mechanism as required in
§ 250.734(a)(16);
(v) Demonstrates the shearing capacity of the BOP equipment to the phys-
ical and mechanical properties of the drill pipe; and
(vi) Includes relevant testing results.
(2) Pressure integrity testing, and ........................... (i) Shows that testing is conducted immediately after the shearing tests;
(ii) Demonstrates that the equipment will seal at the rated working pres-
sures (RWP) of the BOP for 30 minutes; and
(iii) Includes all relevant test results.
(3) Calculations ....................................................... Include shearing and sealing pressures for all pipe to be used in the well
including corrections for MASP.
(c) For wells in an HPHT environ- with the BOP system or related equip-
ment, as defined by § 250.807(b), you ment during the review process. You
must submit verification by a BAVO must submit the verifications required
that the verification organization con- by this paragraph (c) to the appro-
ducted a comprehensive review of the priate District Manager and Regional
BOP system and related equipment you Supervisor before you begin any oper-
propose to use. You must provide the ations in an HPHT environment with
BAVO access to any facility associated the proposed equipment.
(1) Verification that the verification organization

conducted a detailed review of the design pack-
age to ensure that all critical components and
systems meet recognized engineering practices,
(2) Verification that the designs of individual com- (i) Identification of all reasonable potential modes of failure; and
ponents and the overall system have been prov- (ii) Evaluation of the design verification tests. The design verification tests
en in a testing process that demonstrates the must assess the equipment for the identified potential modes of failure.
performance and reliability of the equipment in a
manner that is repeatable and reproducible,
(3) Verification that the BOP equipment will per-
form as designed in the temperature, pressure,
and environment that will be encountered, and
(4) Verification that the fabrication, manufacture, For the quality control and assurance mechanisms, complete material and
and assembly of individual components and the quality controls over all contractors, subcontractors, distributors, and sup-
overall system uses recognized engineering pliers at every stage in the fabrication, manufacture, and assembly proc-
practices and quality control and assurance ess.
mechanisms.
(d) Once every 12 months, you must a floating facility. This report must be
submit a Mechanical Integrity Assess- completed by a BAVO. You must sub-
ment Report for a subsea BOP, a BOP mit this report to the Chief, Office of
being used in an HPHT environment as Offshore Regulatory Programs; Bureau
defined in § 250.807, or a surface BOP on
139
§ 250.733 30 CFR Ch. II (7–1–18 Edition)
of Safety and Environmental Enforce- scheduled maintenance is implemented

ment; 45600 Woodland Road, Sterling, in a timely manner.
VA 20166. This report must include: (11) Identification of gaps or defi-
(1) A determination that the BOP ciencies related to inspection and
stack and system meets or exceeds all maintenance procedures and docu-
BSEE regulatory requirements, indus- mentation, documentation of any de-
try standards incorporated into this ferred maintenance, and verification of
subpart, and recognized engineering the completion of corrective action
practices. plans.
(2) Verification that complete docu- (12) Verification that any inspection,
mentation of the equipment’s service maintenance, or repair work meets the
life exists that demonstrates that the manufacturer’s design and material
BOP stack has not been compromised specifications.
or damaged during previous service. (13) Verification of written proce-
(3) A description of all inspection, re- dures for operating the BOP stack and
pair and maintenance records reviewed, Lower Marine Riser Package (LMRP)
and verification that all repairs, re- (including proper techniques to prevent
placement parts, and maintenance accidental disconnection of these com-
meet regulatory requirements, recog- ponents) and minimum knowledge re-
nized engineering practices, and OEM quirements for personnel authorized to
specifications. operate and maintain BOP compo-
nents.
(4) A description of records reviewed
(14) Recommendations, if any, for
related to any modifications to the
how to improve the fabrication, instal-
equipment and verification that any
lation, operation, maintenance, inspec-
such changes do not adversely affect
tion, and repair of the equipment.
the equipment’s capability to perform
(e) You must make all documenta-
as designed or invalidate test results.
tion that supports the requirements of
(5) A description of the Safety and this section available to BSEE upon re-
Environmental Management Systems quest.
(SEMS) plans reviewed related to as-
surance of quality and mechanical in- § 250.733 What are the requirements
tegrity of critical equipment and for a surface BOP stack?
verification that the plans are com- (a) When you drill or conduct oper-
prehensive and fully implemented. ations with a surface BOP stack, you
(6) Verification that the qualification must install the BOP system before
and training of inspection, repair, and drilling or conducting operations to
maintenance personnel for the BOP deepen the well below the surface cas-
systems meet recognized engineering ing and after the well is deepened
practices and any applicable OEM re- below the surface casing point. The
quirements. surface BOP stack must include at
(7) A description of all records re- least four remote-controlled, hydrau-
viewed covering OEM safety alerts, all lically operated BOPs, consisting of
failure reports, and verification that one annular BOP, one BOP equipped
any design or maintenance issues have with blind shear rams, and two BOPs
been completely identified and cor- equipped with pipe rams.
rected. (1) The blind shear rams must be ca-
(8) A comprehensive assessment of pable of shearing at any point along
the overall system and verification the tubular body of any drill pipe (ex-
that all components (including me- cluding tool joints, bottom-hole tools,
chanical, hydraulic, electrical, and and bottom hole assemblies that in-
software) are compatible. clude heavy-weight pipe or collars),
(9) Verification that documentation workstring, tubing provided that the
exists concerning the traceability of capability to shear tubing with exte-
the fabrication, repair, and mainte- rior control lines is not required prior
nance of all critical components. to April 30, 2018, and any electric-,
(10) Verification of use of a formal wire-, and slick-line that is in the hole
maintenance tracking system to en- and sealing the wellbore after shearing.
sure that corrective maintenance and If your blind shear rams are unable to
140
cut any electric-, wire-, or slick-line (ii) The inner riser for a dual riser
under MASP as defined for the oper- configuration is subject to the require-
ation and seal the wellbore, you must ments at § 250.721 for testing the casing
use an alternative cutting device capa- or liner.
ble of shearing the lines before closing (c) You must install separate side
the BOP. This device must be available outlets on the BOP stack for the kill
on the rig floor during operations that and choke lines. If your stack does not
require their use. have side outlets, you must install a
(2) The two BOPs equipped with pipe drilling spool with side outlets. The
rams must be capable of closing and outlet valves must hold pressure from
sealing on the tubular body of any drill both directions.
pipe, workstring, and tubing under (d) You must install a choke and a
MASP, as defined for the operation, ex- kill line on the BOP stack. You must
cept for tubing with exterior control
equip each line with two full-bore, full-
lines and flat packs, a bottom hole as-
opening valves, one of which must be
sembly that includes heavy-weight pipe
remote-controlled. On the kill line, you
or collars, and bottom-hole tools.
may install a check valve and a man-
(b) If you plan to use a surface BOP
ual valve instead of the remote-con-
on a floating production facility you
trolled valve. To use this configura-
must:
(1) For BOPs installed after April 29, tion, both manual valves must be read-
2019, follow the BOP requirements in ily accessible and you must install the
§ 250.734(a)(1). check valve between the manual valves
(2) For risers installed after July 28, and the pump.
2016, use a dual bore riser configuration
before drilling or operating in any hole for a subsea BOP system?
section or interval where hydrocarbons
are, or may be, exposed to the well. (a) When you drill or conduct oper-
The dual bore riser must meet the de- ations with a subsea BOP system, you
sign requirements of API RP 2RD (as must install the BOP system before
incorporated by reference in § 250.198), drilling to deepen the well below the
including appropriate design for the surface casing or before conducting op-
maximum anticipated operating and erations if the well is already deepened
environmental conditions. beyond the surface casing point. The
(i) For a dual bore riser configura- District Manager may require you to
tion, the annulus between the risers install a subsea BOP system before
must be monitored for pressure during drilling or conducting operations below
operations. You must describe in your the conductor casing if proposed casing
APD or APM your annulus monitoring setting depths or local geology indicate
plan and how you will secure the well the need. The following table outlines
in the event a leak is detected. your requirements.
When operating with a subsea BOP system, you must: Additional requirements:
(1) Have at least five remote-controlled, hydraulically operated You must have at least one annular BOP, two BOPs equipped
BOPs; with pipe rams, and two BOPs equipped with shear rams.
For the dual ram requirement, you must comply with this re-
quirement no later than April 29, 2021.
(i) Both BOPs equipped with pipe rams must be capable of
closing and sealing on the tubular body of any drill pipe,
workstring, and tubing under MASP, as defined for the oper-
ation, except tubing with exterior control lines and flat packs,
a bottom hole assembly that includes heavy-weight pipe or
collars, and bottom-hole tools.
141
§ 250.734 30 CFR Ch. II (7–1–18 Edition)
(ii) Both shear rams must be capable of shearing at any point

along the tubular body of any drill pipe (excluding tool joints,
bottom-hole tools, and bottom hole assemblies such as
heavy-weight pipe or collars), workstring, tubing provided
that the capability to shear tubing with exterior control lines
is not required prior to April 30, 2018, appropriate area for
the liner or casing landing string, shear sub on subsea test
tree, and any electric-, wire-, slick-line in the hole no later
than April 30, 2018; under MASP. At least one shear ram
must be capable of sealing the wellbore after shearing under
MASP conditions as defined for the operation. Any non-seal-
ing shear ram(s) must be installed below a sealing shear
ram(s).
(2) Have an operable redundant pod control system to ensure
proper and independent operation of the BOP system;
(3) Have the accumulator capacity located subsea, to provide The accumulator capacity must:
fast closure of the BOP components and to operate all crit- (i) Operate each required shear ram, ram locks, one pipe ram,
ical functions in case of a loss of the power fluid connection and disconnect the LMRP.
to the surface; (ii) Have the capability of delivering fluid to each ROV function
i.e., flying leads.
(iii) No later than April 29, 2021, have bottles for the
autoshear, and deadman that are dedicated to, but may be
shared between, those functions.
(iv) Perform under MASP conditions as defined for the oper-
ation.
(4) Have a subsea BOP stack equipped with remotely operated The ROV must be capable of opening and closing each shear
vehicle (ROV) intervention capability; ram, ram locks, one pipe ram, and LMRP disconnect under
MASP conditions as defined for the operation. The ROV
panels on the BOP and LMRP must be compliant with API
RP 17H (as incorporated by reference in § 250.198).
(5) Maintain an ROV and have a trained ROV crew on each rig The crew must be trained in the operation of the ROV. The
unit on a continuous basis once BOP deployment has been training must include simulator training on stabbing into an
initiated from the rig until recovered to the surface. The ROV ROV intervention panel on a subsea BOP stack. The ROV
crew must examine all ROV-related well-control equipment crew must be in communication with designated rig per-
(both surface and subsea) to ensure that it is properly main- sonnel who are knowledgeable about the BOP’s capabilities.
tained and capable of carrying out appropriate tasks during
emergency operations;
(6) Provide autoshear, deadman, and EDS systems for dynam- (i) Autoshear system means a safety system that is designed
ically positioned rigs; provide autoshear and deadman sys- to automatically shut-in the wellbore in the event of a dis-
tems for moored rigs; connect of the LMRP. This is considered a rapid discharge
system.
(ii) Deadman system means a safety system that is designed
to automatically shut-in the wellbore in the event of a simul-
taneous absence of hydraulic supply and signal transmission
capacity in both subsea control pods. This is considered a
rapid discharge system.
(iii) Emergency Disconnect Sequence (EDS) system means a
safety system that is designed to be manually activated to
shut-in the wellbore and disconnect the LMRP in the event
of an emergency situation. This is considered a rapid dis-
charge system.
(iv) Each emergency function must close at a minimum, two
shear rams in sequence and be capable of performing its
expected shearing and sealing action under MASP condi-
tions as defined for the operation.
(v) Your sequencing must allow a sufficient delay for closing
the upper shear ram after beginning closure of the lower
shear ram to provide for maximum sealing efficiency.
(vi) The control system for the emergency functions must be a
fail-safe design once activated.
(7) Demonstrate that any acoustic control system will function If you choose to use an acoustic control system in addition to
in the proposed environment and conditions; the autoshear, deadman, and EDS requirements, you must
demonstrate to the District Manager, as part of the informa-
tion submitted under § 250.731, that the acoustic control sys-
tem will function in the proposed environment and condi-
tions. The District Manager may require additional informa-
tion as appropriate to clarify or evaluate the acoustic control
system information provided in your demonstration.
(8) Have operational or physical barrier(s) on BOP control pan- You must incorporate enable buttons, or a similar feature, on
els to prevent accidental disconnect functions; control panels to ensure two-handed operation for all critical
functions.
(9) Clearly label all control panels for the subsea BOP system; Label other BOP control panels, such as hydraulic control
panel.
142
(10) Develop and use a management system for operating the The management system must include written procedures for
BOP system, including the prevention of accidental or un- operating the BOP stack and LMRP (including proper tech-
planned disconnects of the system; niques to prevent accidental disconnection of these compo-
nents) and minimum knowledge requirements for personnel
authorized to operate and maintain BOP components.
(11) Establish minimum requirements for personnel authorized Personnel must have:
to operate critical BOP equipment; (i) Training in deepwater well-control theory and practice ac-
cording to the requirements of Subparts O and S; and
(ii) A comprehensive knowledge of BOP hardware and control
systems.
(12) Before removing the marine riser, displace the fluid in the You must maintain sufficient hydrostatic pressure or take other
riser with seawater; suitable precautions to compensate for the reduction in pres-
sure and to maintain a safe and controlled well condition.
You must follow the requirements of § 250.720(b).
(13) Install the BOP stack in a well cellar when in an ice-scour Your well cellar must be deep enough to ensure that the top of
area; the stack is below the deepest probable ice-scour depth.
(14) Install at least two side outlets for a choke line and two (i) If your stack does not have side outlets, you must install a
side outlets for a kill line; drilling spool with side outlets.
(ii) Each side outlet must have two full-bore, full-opening
valves.
(iii) The valves must hold pressure from both directions and
must be remote-controlled.
iv) You must install a side outlet below the lowest sealing
shear ram. You may have a pipe ram or rams between the
shearing ram and side outlet.
(15) Install a gas bleed line with two valves for the annular pre- (i) The valves must hold pressure from both directions;
venter no later than April 30, 2018; (ii) If you have dual annulars, you must install the gas bleed
line below the upper annular.
(16) Use a BOP system that has the following mechanisms (i) A mechanism coupled with each shear ram to position the
and capabilities; entire pipe, completely within the area of the shearing blade
and ensure shearing will occur any time the shear rams are
activated. This mechanism cannot be another ram BOP or
annular preventer, but you may use those during a planned
shear. You must install this mechanism no later than May 1,
2023;
(ii) The ability to mitigate compression of the pipe stub be-
tween the shearing rams when both shear rams are closed;
(iii) If your control pods contain a subsea electronic module
with batteries, a mechanism for personnel on the rig to mon-
itor the state of charge of the subsea electronic module bat-
teries in the BOP control pods.
(b) If operations are suspended to Before drilling out the surface casing,
make repairs to any part of the subsea you must submit for approval a revised
BOP system, you must stop operations APD, including the verifications re-
at a safe downhole location. Before required in this subpart.
suming operations you must:
(1) Submit a revised permit with a § 250.735 What associated systems and
verification report from a BAVO docu- related equipment must all BOP
menting the repairs and that the BOP systems include?
is fit for service; All BOP systems must include the
(2) Upon relatch of the BOP, perform following associated systems and re-
an initial subsea BOP test in accord- lated equipment:
ance with § 250.737(d)(4), including (a) An accumulator system (as speci-
deadman. If repairs take longer than 30 fied in API Standard 53, and incor-
days, once the BOP is on deck, you porated by reference in § 250.198) that
must test in accordance with the re- provides the volume of fluid capacity
quirements of § 250.737; and (as specified in API Standard 53, Annex
(3) Receive approval from the Dis- C) necessary to close and hold closed
trict Manager. all BOP components against MASP.
(c) If you plan to drill a new well The system must operate under MASP
with a subsea BOP, you do not need to conditions as defined for the operation.
submit with your APD the You must be able to operate the BOP
verifications required by this subpart functions as defined in API Standard
for the open water drilling operation. 53, without assistance from a charging
143
§ 250.736 30 CFR Ch. II (7–1–18 Edition)
system, and still have a minimum pres- siveness, volume, and abrasiveness of
sure of 200 psi remaining on the bottles drilling fluids and well fluids that you
above the pre-charge pressure. If you may encounter.
supply the accumulator regulators by (b) Choke manifold components must
rig air and do not have a secondary have a RWP at least as great as the
source of pneumatic supply, you must RWP of the ram BOPs. If your choke
equip the regulators with manual over- manifold has buffer tanks downstream
rides or other devices to ensure capa- of choke assemblies, you must install
bility of hydraulic operations if rig air isolation valves on any bleed lines.
is lost; (c) Valves, pipes, flexible steel hoses,
(b) An automatic backup to the pri- and other fittings upstream of the
mary accumulator-charging system. choke manifold must have a RWP at
The power source must be independent least as great as the RWP of the ram
from the power source for the primary BOPs.
accumulator-charging system. The (d) You must use the following BOP
independent power source must possess equipment with a RWP and tempera-
sufficient capability to close and hold ture of at least as great as the working
closed all BOP components under pressure and temperature of the ram
MASP conditions as defined for the op- BOP during all operations:
eration; (1) The applicable kelly-type valves
(c) At least two full BOP control sta- as described in API Standard 53 (incor-
tions. One station must be on the rig porated by reference in § 250.198);
floor. You must locate the other sta- (2) On a top-drive system equipped
tion in a readily accessible location with a remote-controlled valve, a
away from the rig floor; strippable kelly-type valve must be in-
(d) The choke line(s) installed above stalled below the remote-controlled
the bottom well-control ram; valve;
(e) The kill line must be installed be- (3) An inside BOP in the open posi-
neath at least one well-control ram, tion located on the rig floor. You must
and may be installed below the bottom be able to install an inside BOP for
ram; each size connection in the pipe;
(f) A fill-up line above the uppermost (4) A drill string safety valve in the
BOP; open position located on the rig floor.
(g) Locking devices for all BOP seal- You must have a drill-string safety
ing rams (i.e., blind shear rams, pipe valve available for each size connection
rams and variable bore rams), as fol-
in the pipe;
lows:
(5) When running casing, a safety
(1) For subsea BOPs, hydraulic lock-
valve in the open position available on
ing devices must be installed on all
the rig floor to fit the casing string
sealing rams;
being run in the hole;
(2) For surface BOPs:
(6) All required manual and remote-
(i) Remotely-operated locking de-
vices must be installed on blind shear controlled kelly-type valves, drill-
rams no later than April 29, 2019; string safety valves, and comparable-
(ii) Manual or remotely-operated type valves (i.e., kelly-type valve in a
locking devices must be installed on top-drive system) that are essentially
pipe rams and variable bore rams; and full opening; and
(h) A wellhead assembly with a RWP (7) A wrench to fit each manual
that exceeds the maximum anticipated valve. Each wrench must be readily ac-
wellhead pressure. cessible to the drilling crew.
§ 250.736 What are the requirements § 250.737 What are the BOP system
for choke manifolds, kelly-type testing requirements?
valves inside BOPs, and drill string Your BOP system (this includes the
safety valves? choke manifold, kelly-type valves, in-
(a) Your BOP system must include a side BOP, and drill string safety valve)
choke manifold that is suitable for the must meet the following testing re-
anticipated surface pressures, antici- quirements:

pated methods of well control, the sur- (a) Pressure test frequency. You must
rounding environment, and the corro- pressure test your BOP system:
144
(1) When installed; blind shear rams). You must indicate

(2) Before 14 days have elapsed since in your APD which casing strings and
your last BOP pressure test, or 30 days liners meet these criteria;
since your last blind shear ram BOP (4) The District Manager may require
pressure test. You must begin to test more frequent testing if conditions or
your BOP system before midnight on your BOP performance warrant.
the 14th day (or 30th day for your blind (b) Pressure test procedures. When you
shear rams) following the conclusion of pressure test the BOP system, you
the previous test; must conduct a low-pressure test and a
(3) Before drilling out each string of high-pressure test for each BOP compo-
casing or a liner. You may omit this nent. You must begin each test by con-
pressure test requirement if you did ducting the low-pressure test then
not remove the BOP stack to run the transition to the high-pressure test.
casing string or liner, the required BOP Each individual pressure test must
test pressures for the next section of hold pressure long enough to dem-
the hole are not greater than the test onstrate the tested component(s) holds
pressures for the previous BOP test, the required pressure. The table in this
and the time elapsed between tests has paragraph (b) outlines your pressure
not exceeded 14 days (or 30 days for test requirements.
You must conduct a . . . According to the following procedures . . .
(1) Low-pressure test .............................................. All low-pressure tests must be between 250 and 350 psi. Any initial pres-
sure above 350 psi must be bled back to a pressure between 250 and
350 psi before starting the test. If the initial pressure exceeds 500 psi,
you must bleed back to zero and reinitiate the test.
(2) High-pressure test for blind shear ram-type The high-pressure test must equal the RWP of the equipment or be 500 psi
BOPs, ram-type BOPs, the choke manifold, out- greater than your calculated MASP, as defined for the operation for the
side of all choke and kill side outlet valves (and applicable section of hole. Before you may test BOP equipment to the
annular gas bleed valves for subsea BOP), in- MASP plus 500 psi, the District Manager must have approved those test
side of all choke and kill side outlet valves pressures in your APD.
below uppermost ram, and other BOP compo-
nents.
(3) High-pressure test for annular-type BOPs, in- The high pressure test must equal 70 percent of the RWP of the equipment
side of choke or kill valves (and annular gas or be 500 psi greater than your calculated MASP, as defined for the op-
bleed valves for subsea BOP) above the upper- eration for the applicable section of hole. Before you may test BOP
most ram BOP. equipment to the MASP plus 500 psi, the District Manager must have ap-
proved those test pressures in your APD.
(c) Duration of pressure test. Each test the middle half of the chart range, i.e.,
must hold the required pressure for 5 cannot be within the lower or upper
minutes, which must be recorded on a one-fourth of the chart range. If the
chart not exceeding 4 hours. However, equipment does not hold the required
for surface BOP systems and surface pressure during a test, you must cor-
equipment of a subsea BOP system, a 3- rect the problem and retest the af-
minute test duration is acceptable if fected component(s).
recorded on a chart not exceeding 4 (d) Additional test requirements. You
hours, or on a digital recorder. The re- must meet the following additional
corded test pressures must be within BOP testing requirements:
You must . . . Additional requirements . . .
(1) Follow the testing requirements of API Stand- If there is a conflict between API Standard 53, testing requirements and this
ard 53 (as incorporated in § 250.198). section, you must follow the requirements of this section.
(2) Use water to test a surface BOP system on (i) You must submit test procedures with your APD or APM for District Man-
the initial test. You may use drilling/completion/ ager approval.
workover fluids to conduct subsequent tests of a (ii) Contact the District Manager at least 72 hours prior to beginning the ini-
surface BOP system. tial test to allow BSEE representative(s) to witness testing. If BSEE rep-
resentative(s) are unable to witness testing, you must provide the initial
test results to the appropriate District Manager within 72 hours after com-
pletion of the tests.
(3) Stump test a subsea BOP system before in- (i) You must use water to conduct this test. You may use drilling/comple-
stallation. tion/workover fluids to conduct subsequent tests of a subsea BOP sys-
tem.
145
§ 250.737 30 CFR Ch. II (7–1–18 Edition)
(ii) You must submit test procedures with your APD or APM for District
Manager approval
(iii) Contact the District Manager at least 72 hours prior to beginning the
stump test to allow BSEE representative(s) to witness testing. If BSEE
representative(s) are unable to witness testing, you must provide the test
results to the appropriate District Manager within 72 hours after comple-
tion of the tests.
(iv) You must test and verify closure of all ROV intervention functions on
your subsea BOP stack during the stump test.
(v) You must follow paragraphs (b) and (c) of this section.
(4) Perform an initial subsea BOP test ................... (i) You must perform the initial subsea BOP test on the seafloor within 30
days of the stump test.
(ii) You must submit test procedures with your APD or APM for District
Manager approval.
(iii) You must pressure test well-control rams according to paragraphs (b)
and (c) of this section.
(iv) You must notify the District Manager at least 72 hours prior to begin-
ning the initial subsea test for the BOP system to allow BSEE represent-
ative(s) to witness testing.
(v) You must test and verify closure of at least one set of rams during the
initial subsea test through a ROV hot stab.
(vi) You must pressure test the selected rams according to paragraphs (b)
and (c) of this section.
(5) Alternate testing pods between control stations (i) For two complete BOP control stations:
(A) Designate a primary and secondary station, and both stations must be
function-tested weekly;
(B) The control station used for the pressure test must be alternated be-
tween pressure tests; and
(C) For a subsea BOP, the pods must be rotated between control stations
during weekly function testing and 14 day pressure testing.
(ii) Remote panels where all BOP functions are not included (e.g., life boat
panels) must be function-tested upon the initial BOP tests and monthly
thereafter.
(6) Pressure test variable bore-pipe ram BOPs
against pipe sizes according to API Standard
53, excluding the bottom hole assembly that in-
cludes heavy-weight pipe or collars and bottom-
hole tools.
(7) Pressure test annular type BOPs against pipe
sizes according to API Standard 53.
(8) Pressure test affected BOP components fol-
lowing the disconnection or repair of any well-
pressure containment seal in the wellhead or
BOP stack assembly.
(9) Function test annular and pipe/variable bore
ram BOPs every 7 days between pressure tests.
(10) Function test shear ram(s) BOPs every 14
days.
(11) Actuate safety valves assembled with proper
casing connections before running casing.
146
(12) Function test autoshear/deadman, and EDS (i) You must submit test procedures with your APD or APM for District Man-
systems separately on your subsea BOP stack ager approval. The procedures for these function tests must include the
during the stump test. The District Manager may schematics of the actual controls and circuitry of the system that will be
require additional testing of the emergency sys- used during an actual autoshear or deadman event.
tems. You must also test the deadman system (ii) The procedures must also include the actions and sequence of events
and verify closure of the shearing rams during that take place on the approved schematics of the BOP control system
the initial test on the seafloor. and describe specifically how the ROV will be utilized during this oper-
ation.
(iii) When you conduct the initial deadman system test on the seafloor, you
must ensure the well is secure and, if hydrocarbons have been present,
appropriate barriers are in place to isolate hydrocarbons from the well-
head. You must also have an ROV on bottom during the test.
(iv) The testing of the deadman system on the seafloor must indicate the
discharge pressure of the subsea accumulator system throughout the
test.
(v) For the function test of the deadman system during the initial test on the
seafloor, you must have the ability to quickly disconnect the LMRP
should the rig experience a loss of station-keeping event. You must in-
clude your quick-disconnect procedures with your deadman test proce-
dures.
(vi) You must pressure test the blind shear ram(s) according to paragraphs
(b) and (c) of this section.
(vii) If a casing shear ram is installed, you must describe how you will verify
closure of the ram.
(viii) You must document all your test results and make them available to
BSEE upon request.
(e) Prior to conducting any shear § 250.738 What must I do in certain sit-
ram tests in which you will shear pipe, uations involving BOP equipment
you must notify the District Manager or systems?
at least 72 hours in advance, to ensure The table in this section describes ac-
that a BSEE representative will have tions that you must take when certain
access to the location to witness any
situations occur with BOP systems.
testing.
(a) BOP equipment does not hold the required Correct the problem and retest the affected equipment. You must report
pressure during a test; any problems or irregularities, including any leaks, on the daily report as
required in § 250.746.
(b) Need to repair, replace, or reconfigure a sur- (1) First place the well in a safe, controlled condition as approved by the
face or subsea BOP system; District Manager (e.g., before drilling out a casing shoe or after setting a
cement plug, bridge plug, or a packer).
(2) Any repair or replacement parts must be manufactured under a quality
assurance program and must meet or exceed the performance of the
original part produced by the OEM.
(3) You must receive approval from the District Manager prior to resuming
operations with the new, repaired, or reconfigured BOP.
(4) You must submit a report from a BAVO to the District Manager certi-
fying that the BOP is fit for service.
(c) Need to postpone a BOP test due to well-con- Record the reason for postponing the test in the daily report and conduct
trol problems such as lost circulation, formation the required BOP test after the first trip out of the hole.
fluid influx, or stuck pipe;
(d) BOP control station or pod that does not func- Suspend operations until that station or pod is operable. You must report
tion properly; any problems or irregularities, including any leaks, to the District Man-
ager.
(e) Plan to operate with a tapered string; Install two or more sets of conventional or variable-bore pipe rams in the
BOP stack to provide for the following: two sets of rams must be capable
of sealing around the larger-size drill string and one set of pipe rams
must be capable of sealing around the smaller size pipe, excluding the
bottom hole assembly that includes heavy weight pipe or collars and bot-
tom-hole tools.
(f) Plan to install casing rams or casing shear Test the affected connections before running casing to the RWP or MASP
rams in a surface BOP stack; plus 500 psi. If this installation was not included in your approved permit,
and changes the BOP configuration approved in the APD or APM, you
must notify and receive approval from the District Manager.

(g) Plan to use an annular BOP with a RWP less Demonstrate that your well-control procedures or the anticipated well condi-
than the anticipated surface pressure; tions will not place demands above its RWP and obtain approval from the
District Manager.
147
§ 250.739 30 CFR Ch. II (7–1–18 Edition)
(h) Plan to use a subsea BOP system in an ice- Install the BOP stack in a well cellar. The well cellar must be deep enough
scour area; to ensure that the top of the stack is below the deepest probable ice-
scour depth.
(i) You activate any shear ram and pipe or casing Retrieve, physically inspect, and conduct a full pressure test of the BOP
is sheared; stack after the situation is fully controlled. You must submit to the District
Manager a report from a BSEE-approved verification organization certi-
fying that the BOP is fit to return to service.
(j) Need to remove the BOP stack; Have a minimum of two barriers in place prior to BOP removal. You must
obtain approval from the District Manager of the two barriers prior to re-
moval and the District Manager may require additional barriers and
test(s).
(k) In the event of a deadman or autoshear activa- Place the blind shear ram opening function in the block position prior to re-
tion, if there is a possibility of the blind shear establishing power to the stack. Contact the District Manager and receive
ram opening immediately upon re-establishing approval of procedures for re-establishing power and functions prior to
power to the BOP stack; latching up the BOP stack or re-establishing power to the stack.
(l) If a test ram is to be used; The wellhead/BOP connection must be tested to the MASP plus 500 psi for
the hole section to which it is exposed. This can be done by:
(1) Testing wellhead/BOP connection to the MASP plus 500 psi for the well
upon installation;
(2) Pressure testing each casing to the MASP plus 500 psi for the next hole
section; or
(3) Some combination of paragraphs (l)(1) and (2) of this section.
(m) Plan to utilize any other well-control equip- Contact the District Manager and request approval in your APD or APM.
ment (e.g., but not limited to, subsea isolation Your request must include a report from a BAVO on the equipment’s de-
device, subsea accumulator module, or gas sign and suitability for its intended use as well as any other information
handler) that is in addition to the equipment re- required by the District Manager. The District Manager may impose any
quired in this subpart; conditions regarding the equipment’s capabilities, operation, and testing.
(n) You have pipe/variable bore rams that have no Indicate in your APD or APM which pipe/variable bore rams meet these cri-
current utility or well-control purposes; teria and clearly label them on all BOP control panels. You do not need
to function test or pressure test pipe/variable bore rams having no current
utility, and that will not be used for well-control purposes, until such time
as they are intended to be used during operations.
(o) You install redundant components for well con- Comply with all testing, maintenance, and inspection requirements in this
trol in your BOP system that are in addition to subpart that are applicable to those well-control components. If any re-
the required components of this subpart (e.g., dundant component fails a test, you must submit a report from a BAVO
pipe/variable bore rams, shear rams, annular that describes the failure and confirms that there is no impact on the
preventers, gas bleed lines, and choke/kill side BOP that will make it unfit for well-control purposes. You must submit this
outlets or lines); report to the District Manager and receive approval before resuming op-
erations. The District Manager may require you to provide additional in-
formation as needed to clarify or evaluate your report.
(p) Need to position the bottom hole assembly, in- Ensure that the well is stable prior to positioning the bottom hole assembly
cluding heavy-weight pipe or collars, and bot- across the BOP. You must have, as part of your well-control plan re-
tom-hole tools across the BOP for tripping or quired by § 250.710, procedures that enable the removal of the bottom
any other operations. hole assembly from across the BOP in the event of a well-control or
emergency situation (for dynamically positioned rigs, your plan must also
include steps for when the EDS must be activated) before MASP condi-
tions are reached as defined for the operation.
§ 250.739 What are the BOP mainte- rication, and record the results of your
nance and inspection require- BOP inspections and maintenance ac-
ments? tions. You must make all records avail-
(a) You must maintain and inspect able to BSEE upon request.
your BOP system to ensure that the (b) A complete breakdown and de-
equipment functions as designed. The tailed physical inspection of the BOP
BOP maintenance and inspections and every associated system and com-
must meet or exceed any OEM rec- ponent must be performed every 5
ommendations, recognized engineering years. This complete breakdown and
practices, and industry standards in- inspection may be performed in phased
corporated by reference into the regu- intervals. You must track and docu-
lations of this subpart, including API ment all system and component inspec-
Standard 53 (incorporated by reference tion dates. These records must be
in § 250.198). You must document how available on the rig. A BAVO is re-
you met or exceeded the provisions of quired to be present during each in-
API Standard 53, maintain complete spection and must compile a detailed
records to ensure the traceability of report documenting the inspection, in-
BOP stack equipment beginning at fab- cluding descriptions of any problems
148
and how they were corrected. You must RECORDS AND REPORTING
make these reports available to BSEE
upon request. This complete break- § 250.740 What records must I keep?
down and inspection must be performed You must keep a daily report con-
every 5 years from the following appli- sisting of complete, legible, and accu-
cable dates, whichever is later: rate records for each well. You must
(1) The date the equipment owner ac- keep records onsite while well oper-
cepts delivery of a new build drilling ations continue. After completion of
rig with a new BOP system; operations, you must keep all oper-
(2) The date the new, repaired, or re- ation and other well records for the
manufactured equipment is initially time periods shown in § 250.741 at a lo-
installed into the system; or cation of your choice, except as re-
(3) The date of the last 5 year inspec- quired in § 250.746. The records must
tion for the component. contain complete information on all of
(c) You must visually inspect your the following:
surface BOP system on a daily basis. (a) Well operations, all testing con-
You must visually inspect your subsea ducted, and any real-time monitoring
BOP system, marine riser, and well- data as required by § 250.724;
head at least once every 3 days if
(b) Descriptions of formations pene-
weather and sea conditions permit.
trated;
You may use cameras to inspect subsea
(c) Content and character of oil, gas,
equipment.
water, and other mineral deposits in
(d) You must ensure that all per-
each formation;
sonnel maintaining, inspecting, or re-
pairing BOPs, or critical components of (d) Kind, weight, size, grade, and set-
the BOP system, are trained in accord- ting depth of casing;
ance with applicable training require- (e) All well logs and surveys run in
ments in subpart S of this part, any ap- the wellbore;
plicable OEM criteria, recognized engi- (f) Any significant malfunction or
neering practices, and industry stand- problem; and
ards incorporated by reference in this (g) All other information required by
subpart. the District Manager as appropriate to
(e) You must make all records avail- ensure compliance with the require-
able to BSEE upon request. You must ments of this section and to enable
ensure that the rig unit owner main- BSEE to determine that the well oper-
tains the BOP maintenance, inspec- ations are consistent with conservation
tion, and repair records on the rig unit of natural resources and protection of
for 2 years from the date the records safety and the environment on the
are created or for a longer period if di- OCS.
rected by BSEE. You must ensure that
all equipment schematics, mainte- § 250.741 How long must I keep
nance, inspection, and repair records records?
are located at an onshore location for You must keep records for the time
the service life of the equipment. periods shown in the following table.
You must keep records relating to . . . Until . . .
(a) Drilling; 90 days after you complete operations.

(b) Casing and liner pressure tests, diverter tests, BOP tests, 2 years after the completion of operations.
and real-time monitoring data;
(c) Completion of a well or of any workover activity that materi- You permanently plug and abandon the well or until you assign
ally alters the completion configuration or affects a hydro- the lease and forward the records to the assignee.
carbon-bearing zone.
§ 250.742 What well records am I re- ations; directional and vertical well
quired to submit? surveys; velocity profiles and surveys;
You must submit to BSEE copies of and analysis of cores. Each Region will
logs or charts of electrical, radioactive, provide specific instructions for sub-
sonic, and other well logging oper- mitting well logs and surveys.
149
§ 250.743 30 CFR Ch. II (7–1–18 Edition)
§ 250.743 What are the well activity re- § 250.744 What are the end of oper-
porting requirements? ation reporting requirements?
(a) For operations in the BSEE Gulf (a) Within 30 days after completing
of Mexico (GOM) OCS Region, you operations, except routine operations
must submit Form BSEE–0133, Well Ac- as defined in § 250.601, you must submit
tivity Report (WAR), to the District Form BSEE–0125, End of Operations
Manager on a weekly basis. The report- Report (EOR), to the District Manager.
ing week is defined as beginning on The EOR must include: a listing, with
Sunday (12 a.m.) and ending on the fol- top and bottom depths, of all hydro-
carbon zones and other zones of poros-
lowing Saturday (11:59 p.m.). This re-
ity encountered with any cored inter-
porting week corresponds to a week
vals; details on any drill-stem and for-
(Sunday through Saturday) on a stand- mation tests conducted; documenta-
ard calendar. Report any well oper- tion of successful negative pressure
ations that extend past the end of this testing on wells that use a subsea BOP
weekly reporting period on the next stack or wells with mudline suspension
weekly report. The reporting period for systems; and an updated schematic of
the weekly report is never longer than the full wellbore configuration. The
7 days, but could be less than 7 days for schematic must be clearly labeled and
the first reporting period and the last show all applicable top and bottom
reporting period for a particular well depths, locations and sizes of all cas-
operation. Submit each WAR and ac- ings, cut casing or stubs, casing per-
companying Form BSEE–0133S, Open forations, casing rupture discs (indi-
Hole Data Report, to the BSEE GOM cate if burst or collapse and rating), ce-
OCS Region no later than close of busi- mented intervals, cement plugs, me-
ness on the Friday immediately after chanical plugs, perforated zones, com-
the closure of the reporting week. The pletion equipment, production and iso-
District Manager may require more lation packers, alternate completions,
frequent submittal of the WAR on a tubing, landing nipples, subsurface
case-by-case basis. safety devices, and any other informa-
(b) For operations in the Pacific or tion required by the District Manager
Alaska OCS Regions, you must submit regarding the end of well operations.
Form BSEE–0133, WAR, to the District The EOR must indicate the status of
Manager on a daily basis. the well (completed, temporarily aban-
(c) The WAR must include a descrip- doned, permanently abandoned, or
tion of the operations conducted, any drilling suspended) and the date of the
abnormal or significant events that af- well status designation. The well sta-
fect the permitted operation each day tus date is subject to the following:
(1) For surface well operations and
within the report from the time you
riserless subsea operations, the oper-
begin operations to the time you end
ations end date is subject to the discre-
operations, any verbal approval re-
tion of the District Manager; and
ceived, the well’s as-built drawings, (2) For subsea well operations, the
casing, fluid weights, shoe tests, test operations end date is considered to be
pressures at surface conditions, and the date the BOP is disconnected from
any other information concerning well the wellhead unless otherwise specified
activities required by the District Man- by the District Manager.
ager. For casing cementing operations, (b) You must submit public informa-
indicate type of returns (i.e., full, par- tion copies of Form BSEE–0125 accord-
tial, or none). If partial or no returns ing to § 250.186(b).
are observed, you must indicate how
you determined the top of cement. For § 250.745 What other well records
each report, indicate the operation sta- could I be required to submit?
tus for the well at the end of the re- The District Manager or Regional
porting period. On the final WAR, indi- Supervisor may require you to submit
cate the status of the well (completed, copies of any or all of the following
temporarily abandoned, permanently well records:

abandoned, or drilling suspended) and (a) Well records as specified in
the date you finished such operations. § 250.740;
150
(b) Paleontological interpretations or (f) Retain all records, including pres-

reports identifying microscopic fossils sure charts, daily reports, and ref-
by depth and/or washed samples of drill erenced documents pertaining to tests,
cuttings that you normally maintain actuations, and inspections at the rig
for paleontological determinations. unit for the duration of the operation.
The Regional Supervisor may issue a After completion of the operation, you
Notice to Lessees that sets forth the must retain all the records listed in
manner, timeframe, and format for this section for a period of 2 years at
submitting this information; the rig unit. You must also retain the
(c) Service company reports on ce- records at the lessee’s field office near-
menting, perforating, acidizing, test- est the facility or at another location
ing, or other similar services; or available to BSEE. You must make all
(d) Other reports and records of oper- the records available to BSEE upon re-
ations. quest.
§ 250.746 What are the recordkeeping Subpart H—Oil and Gas

requirements for casing, liner, and
BOP tests, and inspections of BOP Production Safety Systems
systems and marine risers?
SOURCE: 81 FR 60918, Sept. 7, 2016, unless
You must record the time, date, and otherwise noted.
results of all casing and liner pressure
tests. You must also record pressure GENERAL REQUIREMENTS
tests, actuations, and inspections of
the BOP system, system components, § 250.800 General.
and marine riser in the daily report de- (a) You must design, install, use,
scribed in § 250.740. In addition, you maintain, and test production safety
must: equipment in a manner to ensure the
(a) Record test pressures on pressure safety and protection of the human,
charts or digital recorders; marine, and coastal environments. For
(b) Require your onsite lessee rep- production safety systems operated in
resentative, designated rig or con- subfreezing climates, you must use
tractor representative, and pump oper- equipment and procedures that account
ator to sign and date the pressure for floating ice, icing, and other ex-
charts or digital recordings and daily treme environmental conditions that
reports as correct; may occur in the area. You must not
(c) Document on the daily report the commence production until BSEE ap-
sequential order of BOP and auxiliary proves your production safety system
equipment testing and the pressure and application and you have requested a
duration of each test. For subsea BOP preproduction inspection.
systems, you must also record the clos- (b) For all new production systems
ing times for annular and ram BOPs. on fixed leg platforms, you must com-
You may reference a BOP test plan if it ply with API RP 14J (incorporated by
is available at the facility; reference as specified in § 250.198);
(d) Identify on the daily report the (c) For all new floating production
control station and pod used during the systems (FPSs) (e.g., column-sta-
test (identifying the pod does not apply bilized-units (CSUs); floating produc-
to coiled tubing and snubbing units); tion, storage and offloading facilities
(e) Identify on the daily report any (FPSOs); tension-leg platforms (TLPs);
problems or irregularities observed and spars), you must:
during BOP system testing and record (1) Comply with API RP 14J;
actions taken to remedy the problems (2) Meet the production riser stand-
or irregularities. Any leaks associated ards of API RP 2RD (incorporated by
with the BOP or control system during reference as specified in § 250.198), pro-
testing must be documented in the vided that you may not install single
WAR. If any problems that cannot be bore production risers from floating
resolved promptly are observed during production facilities;
testing, operations must be suspended (3) Design all stationkeeping (i.e., an-
until the District Manager determines choring and mooring) systems for
that you may continue; and floating production facilities to meet
151
§ 250.801 30 CFR Ch. II (7–1–18 Edition)
the standards of API RP 2SK and API (c) Accepting SPPE manufactured
RP 2SM (both incorporated by ref- under other quality assurance programs.
erence as specified in § 250.198); and BSEE may exercise its discretion to ac-
(4) Design stationkeeping (i.e., an- cept SPPE manufactured under a qual-
choring and mooring) systems for ity assurance program other than
floating facilities to meet the struc- ANSI/API Spec. Q1, provided that the
tural requirements of §§ 250.900 through alternative quality assurance program
250.921. is verified as equivalent to API Spec.
(d) If there are any conflicts between Q1 by an appropriately qualified entity
the documents incorporated by ref- and that the operator submits a re-
erence and the requirements of this quest to BSEE containing relevant in-
subpart, you must follow the require- formation about the alternative pro-
ments of this subpart. gram and receives BSEE approval. In
(e) You may use alternate procedures addition, an operator may request that
or equipment during operations after BSEE accept SPPE that is marked
receiving approval from the District
with a third-party certification mark
Manager. You must present your pro-
other than the API monogram. All re-
posed alternate procedures or equip-
quests under this paragraph should be
ment as required by § 250.141.
(f) You may apply for a departure submitted to the Chief, Office of Off-
from the operating requirements of shore Regulatory Programs; Bureau of
this subpart as provided by § 250.142. Safety and Environmental Enforce-
Your written request must include a ment; VAE–ORP; 45600 Woodland Road,
justification showing why the depar- Sterling, VA 20166.
ture is necessary and appropriate.
§ 250.802 Requirements for SPPE.
§ 250.801 Safety and pollution preven- (a) All SSVs, BSDVs, and USVs and
tion equipment (SPPE) certifi- their actuators must meet all of the
cation.
specifications contained in ANSI/API
(a) SPPE equipment. In wells located Spec. 6A and API Spec. 6AV1 (both in-
on the OCS, you must install only safe- corporated by reference as specified in
ty and pollution prevention equipment § 250.198).
(SPPE) considered certified under (b) All SSSVs and their actuators
paragraph (b) of this section or accept- must meet all of the specifications and
ed under paragraph (c) of this section. recommended practices of ANSI/API
BSEE considers the following equip- Spec. 14A and ANSI/API RP 14B, in-
ment to be types of SPPE:
cluding all annexes (both incorporated
(1) Surface safety valves (SSV) and
by reference as specified in § 250.198).
actuators, including those installed on
Subsurface-controlled SSSVs are not
injection wells capable of natural flow;
allowed on subsea wells.
(2) Boarding shutdown valves (BSDV)
and their actuators, as of September 7, (c) Requirements derived from the
2017. For subsea wells, the BSDV is the documents incorporated in this section
surface equivalent of an SSV on a sur- for SSVs, BSDVs, USVs, and SSSVs
face well; and their actuators, include, but are
(3) Underwater safety valves (USV) not limited to, the following:
and actuators; and (1) Each device must be designed to
(4) Subsurface safety valves (SSSV) function and to close in the most ex-
and associated safety valve locks and treme conditions to which it may be
landing nipples. exposed, including temperature, pres-
(b) Certification of SPPE. SPPE that is sure, flow rates, and environmental
manufactured and marked pursuant to conditions. You must have an inde-
ANSI/API Spec. Q1 (incorporated by pendent third-party review and certify
reference as specified in § 250.198), is that each device will function as de-
considered as certified SPPE under this signed under the conditions to which it
part. All other SPPE is considered as may be exposed. The independent
not certified, unless approved in ac- third-party must have sufficient exper-
cordance with paragraph (c) of this sec- tise and experience to perform the re-
tion. view and certification.
152
(2) All materials and parts must meet (5) You must comply with and docu-
the original equipment manufacturer ment all manufacturing, traceability,
specifications and acceptance criteria. quality control, and inspection require-
(3) The device must pass applicable ments.
validation tests and functional tests (6) You must follow specified instal-
performed by an API-licensed test lation, testing, and repair protocols.
agency. (7) You must use only qualified parts,
(4) You must have requalification procedures, and personnel to repair or
redress equipment.
testing performed following manufac-
(d) You must install and use SPPE
ture design changes.
according to the following table.
If . . . Then . . .
(1) You need to install any SPPE . . . ....................................... You must install SPPE that conforms to § 250.801.
(2) A non-certified SPPE is already in service . . . ................... It may remain in service on that well.
(3) A non-certified SPPE requires offsite repair, re-manufac- You must replace it with SPPE that conforms to § 250.801.
turing, or any hot work such as welding . . ..
(e) You must retain all documenta- (c) If the equipment manufacturer
tion related to the manufacture, instal- notifies you that it has changed the de-
lation, testing, repair, redress, and per- sign of the equipment that failed or if
formance of the SPPE until 1 year you have changed operating or repair
after the date of decommissioning of procedures as a result of a failure, then
the equipment. you must, within 30 days of such
changes, report the design change or
§ 250.803 What SPPE failure reporting modified procedures in writing to the
procedures must I follow? Chief, Office of Offshore Regulatory
(a) You must follow the failure re- Programs or the Chief’s designee.
porting requirements contained in sec- (d) Any notifications or reports sub-
tion 10.20.7.4 of API Spec. 6A for SSVs, mitted to the Chief, Office of Offshore
BSDVs, and USVs and section 7.10 of Regulatory Programs under paragraphs
API Spec. 14A and Annex F of API RP (a), (b), and (c) of this section must be
14B for SSSVs (all incorporated by ref- sent to: Bureau of Safety and Environ-
erence in § 250.198). You must provide a mental Enforcement; VAE–ORP, 45600
written notice of equipment failure to Woodland Road, Sterling, VA 20166.
the Chief, Office of Offshore Regulatory § 250.804 Additional requirements for
Programs or to the Chief’s designee subsurface safety valves (SSSVs)
and to the manufacturer of such equip- and related equipment installed in
ment within 30 days after the discovery high pressure high temperature
and identification of the failure. A fail- (HPHT) environments.
ure is any condition that prevents the (a) If you plan to install SSSVs and
equipment from meeting the functional related equipment in an HPHT environ-
specification or purpose. ment, you must submit detailed infor-
(b) You must ensure that an inves- mation with your Application for Per-
tigation and a failure analysis are permit to Drill (APD) or Application for
formed within 120 days of the failure to Permit to Modify (APM), and Deep-
determine the cause of the failure. If water Operations Plan (DWOP) that
the investigation and analyses are per- demonstrates the SSSVs and related
formed by an entity other than the equipment are capable of performing in
manufacturer, you must ensure that the applicable HPHT environment.
manufacturer and the Chief, Office of Your detailed information must in-
Offshore Regulatory Programs or the clude the following:
Chief’s designee receives a copy of the (1) A discussion of the SSSVs’ and re-
analysis report. You must also ensure lated equipment’s design verification
that the results of the investigation analyses;

and any corrective action are docu- (2) A discussion of the SSSVs’ and re-
mented in the analysis report. lated equipment’s design validation
153
§ 250.805 30 CFR Ch. II (7–1–18 Edition)
and functional testing processes and §§ 250.806—250.809 [Reserved]

procedures used; and
(3) An explanation of why the anal- SURFACE AND SUBSURFACE SAFETY
yses, processes, and procedures ensure SYSTEMS—DRY TREES
that the SSSVs and related equipment
are fit-for-service in the applicable § 250.810 Dry tree subsurface safety
devices—general.
HPHT environment.
(b) For this section, HPHT environ- For wells using dry trees or for which
ment means when one or more of the you intend to install dry trees, you
following well conditions exist: must equip all tubing installations
open to hydrocarbon-bearing zones
(1) The completion of the well re-
with subsurface safety devices that will
quires completion equipment or well
shut off the flow from the well in the
control equipment assigned a pressure
event of an emergency unless, after
rating greater than 15,000 psia or a you submit a request containing a jus-
temperature rating greater than 350 de- tification, the District Manager deter-
grees Fahrenheit; mines the well to be incapable of nat-
(2) The maximum anticipated surface ural flow. You must install flow cou-
pressure or shut-in tubing pressure is plings above and below the subsurface
greater than 15,000 psia on the seafloor safety devices. These subsurface safety
for a well with a subsea wellhead or at devices include the following devices
the surface for a well with a surface and any associated safety valve lock
wellhead; or and landing nipple:
(3) The flowing temperature is equal (a) An SSSV, including either:
to or greater than 350 degrees Fahr- (1) A surface-controlled SSSV; or
enheit on the seafloor for a well with a (2) A subsurface-controlled SSSV.
subsea wellhead or at the surface for a (b) An injection valve.
well with a surface wellhead. (c) A tubing plug.
(c) For this section, related equip- (d) A tubing/annular subsurface safe-
ment includes wellheads, tubing heads, ty device.
tubulars, packers, threaded connec-
tions, seals, seal assemblies, produc- § 250.811 Specifications for SSSVs—dry
tion trees, chokes, well control equip- trees.
ment, and any other equipment that All surface-controlled and sub-
will be exposed to the HPHT environ- surface-controlled SSSVs, safety valve
ment. locks, and landing nipples installed in
the OCS must conform to the require-
§ 250.805 Hydrogen sulfide. ments specified in §§ 250.801 through
(a) In zones known to contain hydro- 250.803.
gen sulfide (H2S) or in zones where the
§ 250.812 Surface-controlled SSSVs—
presence of H2S is unknown, as defined dry trees.
in § 250.490, you must conduct produc-
tion operations in accordance with You must equip all tubing installa-
that section and other relevant re- tions open to a hydrocarbon-bearing
zone that is capable of natural flow
quirements of this subpart.
with a surface-controlled SSSV, except
(b) You must receive approval
as specified in §§ 250.813, 250.815, and
through the DWOP process (§§ 250.286 250.816.
through 250.295) for production oper- (a) The surface controls must be lo-
ations in HPHT environments known cated on the site or at a BSEE-ap-
to contain H2S or in HPHT environ- proved remote location. You may re-
ments where the presence of H2S is un- quest District Manager approval to sit-
known. uate the surface controls at a remote
location.
(b) You must equip dry tree wells not
previously equipped with a surface-con-

trolled SSSV, and dry tree wells in
which a surface-controlled SSSV has
154
been replaced with a subsurface-con- § 250.815 Subsurface safety devices in

trolled SSSV, with a surface-controlled shut-in wells—dry trees.
SSSV when the tubing is first removed (a) You must equip all new dry tree
and reinstalled. completions (perforated but not placed
on production) and completions that
§ 250.813 Subsurface-controlled SSSVs. are shut-in for a period of 6 months
You may submit an APM or a request with one of the following:
to the District Manager for approval to (1) A pump-through-type tubing plug;
equip a dry tree well with a subsurface- (2) A surface-controlled SSSV, pro-
controlled SSSV in lieu of a surface- vided the surface control has been ren-
controlled SSSV, if the subsurface-con- dered inoperative; or
trolled SSSV is installed in a well (3) An injection valve capable of pre-
venting backflow.
equipped with a surface-controlled
(b) When warranted by conditions
SSSV that has become inoperable and
such as permafrost, unstable bottom
cannot be repaired without removal conditions, hydrate formation, and par-
and reinstallation of the tubing. If you affin problems, the District Manager
remove and reinstall the tubing, you must approve the setting depth of the
must equip the well with a surface-con- subsurface safety device for a shut-in
trolled SSSV. well on a case-by-case basis.
§ 250.814 Design, installation, and op- § 250.816 Subsurface safety devices in
eration of SSSVs—dry trees. injection wells—dry trees.
You must design, install, and operate You must install a surface-controlled
(including repair, maintain, and test) SSSV or an injection valve capable of
an SSSV to ensure its reliable oper- preventing backflow in all injection
ation. wells. This requirement is not applica-
(a) You must install the SSSV at a ble if the District Manager determines
depth at least 100 feet below the that the well is incapable of natural
mudline within 2 days after production flow. You must verify the no-flow con-
is established. When warranted by condition of the well annually.
ditions such as permafrost, unstable § 250.817 Temporary removal of sub-
bottom conditions, hydrate formation, surface safety devices for routine
or paraffin problems, the District Man- operations.
ager may approve an alternate setting (a) You may remove a wireline- or
depth on a case-by-case basis. pumpdown-retrievable subsurface safe-
(b) The well must not be open to flow ty device without further authoriza-
while the SSSV is inoperable, except tion or notice, for a routine operation
when flowing the well is necessary for that does not require BSEE approval of
a particular operation such as cutting a Form BSEE–0124, Application for
paraffin or performing other routine Permit to Modify (APM). For a list of
operations as defined in § 250.601. these routine operations, see § 250.601.
(c) Until the SSSV is installed, the The removal period must not exceed 15
well must be attended in the imme- days.
diate vicinity so that any necessary (b) Prior to removal, you must iden-
emergency actions can be taken while tify the well by placing a sign on the
the well is open to flow. During testing wellhead stating that the subsurface
and inspection procedures, the well safety device was removed. You must
must not be left unattended while open note the removal of the subsurface
safety device in the records required by
to production unless you have installed
§ 250.890. If the master valve is open,
a properly operating SSSV in the well.
you must ensure that a trained person
(d) You must design, install, main- (see § 250.891) is in the immediate vicin-
tain, inspect, repair, and test all ity to attend the well and take any
SSSVs in accordance with API RP 14B necessary emergency actions.
(incorporated by reference as specified (c) You must monitor a platform well

in § 250.198). For additional SSSV test- when a subsurface safety device has
ing requirements, refer to § 250.880. been removed, but a person does not
155
§ 250.818 30 CFR Ch. II (7–1–18 Edition)
need to remain in the well-bay area replace the valve before resuming pro-
continuously if the master valve is duction.
closed. If the well is on a satellite
structure, it must be attended by a § 250.821 Emergency action and safety
support vessel, or a pump-through plug system shutdown—dry trees.
must be installed in the tubing at least (a) In the event of an emergency,
100 feet below the mudline and the such as an impending National Weath-
master valve must be closed, unless er Service-named tropical storm or
otherwise approved by the appropriate hurricane:
District Manager. (1) Any well not yet equipped with a
(d) You must not allow the well to subsurface safety device and that is ca-
flow while the subsurface safety device pable of natural flow must have the
is removed, except when it is necessary subsurface safety device properly in-
for the particular operation for which
stalled as soon as possible, with due
the SSSV is removed. The provisions of
consideration being given to personnel
this paragraph are not applicable to
safety.
the testing and inspection procedures
specified in § 250.880. (2) You must shut-in (by closing the
SSV and the surface-controlled SSSV)
§ 250.818 Additional safety equip- the following types of wells:
ment—dry trees. (i) All oil wells, and
(a) You must equip all tubing instal- (ii) All gas wells requiring compres-
lations that have a wireline- or sion.
pumpdown-retrievable subsurface safe- (b) Closure of the SSV must not ex-
ty device with a landing nipple, with ceed 45 seconds after automatic detec-
flow couplings or other protective tion of an abnormal condition or actu-
equipment above and below it to pro- ation of an ESD. The surface-con-
vide for the setting of the device. trolled SSSV must close within 2 min-
(b) The control system for all sur- utes after the shut-in signal has closed
face-controlled SSSVs must be an inte- the SSV. The District Manager must
gral part of the platform emergency approve any alternative design-delayed
shutdown system (ESD). closure time of greater than 2 minutes
(c) In addition to the activation of based on the mechanical/production
the ESD by manual action on the plat- characteristics of the individual well.
form, the system may be activated by
a signal from a remote location. Sur- §§ 250.822—250.824 [Reserved]
face-controlled SSSVs must close in re-
sponse to shut-in signals from the ESD SUBSEA AND SUBSURFACE SAFETY
and in response to the fire loop or SYSTEMS—SUBSEA TREES
other fire detection devices.
§ 250.825 Subsea tree subsurface safety
§ 250.819 Specification for surface safe- devices—general.
ty valves (SSVs). (a) For wells using subsea (wet) trees
All wellhead SSVs and their actu- or for which you intend to install
ators must conform to the require- subsea trees, you must equip all tubing
ments specified in §§ 250.801 through installations open to hydrocarbon-
250.803. bearing zones with subsurface safety
devices that will shut off the flow from
§ 250.820 Use of SSVs. the well in the event of an emergency.
You must install, maintain, inspect, You must also install flow couplings
repair, and test all SSVs in accordance above and below the subsurface safety
with API RP 14H (incorporated by ref- devices. For instances where the well
erence as specified in § 250.198). If any at issue is incapable of natural flow,
SSV does not operate properly, or if you may seek District Manager ap-
any gas and/or liquid fluid flow is ob- proval for using alternative procedures
served during the leakage test as de- or equipment, if you propose to use a
scribed in § 250.880, then you must shut- subsea safety system that is not capa-
in all sources to the SSV and repair or ble of shutting off the flow from the
156
well in the event of an emergency. Sub- as specified in § 250.198). For additional

surface safety devices include the fol- SSSV testing requirements, refer to
lowing and any associated safety valve § 250.880.
lock and landing nipple:
(1) A surface-controlled SSSV; § 250.829 Subsurface safety devices in
(2) An injection valve; shut-in wells—subsea trees.
(3) A tubing plug; and (a) You must equip all new subsea
(4) A tubing/annular subsurface safe- tree completions (perforated but not
ty device. placed on production) and completions
(b) After installing the subsea tree, shut-in for a period of 6 months with
but before the rig or installation vessel
one of the following:
leaves the area, you must test all
valves and sensors to ensure that they (1) A pump-through-type tubing plug;
are operating as designed and meet all (2) An injection valve capable of pre-
the conditions specified in this subpart. venting backflow; or
(3) A surface-controlled SSSV, pro-
§ 250.826 Specifications for SSSVs— vided the surface control has been ren-
subsea trees. dered inoperative. For purposes of this
All SSSVs, safety valve locks, and section, a surface-controlled SSSV is
landing nipples installed on the OCS considered inoperative if, for a direct
must conform to the requirements hydraulic control system, you have
specified in §§ 250.801 through 250.803 bled the hydraulics from the control
and any Deepwater Operations Plan line and have isolated it from the hy-
(DWOP) required by §§ 250.286 through draulic control pressure. If your con-
250.295. trols employ an electro-hydraulic con-
trol umbilical and the hydraulic con-
§ 250.827 Surface-controlled SSSVs—
subsea trees. trol pressure to the individual well
cannot be isolated, a surface-controlled
You must equip all tubing installa- SSSV is considered inoperative if you
tions open to a hydrocarbon-bearing perform the following:
zone that is capable of natural flow
(i) Disable the control function of the
with a surface-controlled SSSV, except
as specified in §§ 250.829 and 250.830. The surface-controlled SSSV within the
surface controls must be located on the logic of the programmable logic con-
host facility. troller which controls the subsea well;
(ii) Place a pressure alarm high on
§ 250.828 Design, installation, and op- the control line to the surface-con-
eration of SSSVs—subsea trees. trolled SSSV of the subsea well; and
You must design, install, and operate (iii) Close the USV and at least one
(including repair, maintain, and test) other tree valve on the subsea well.
an SSSV to ensure its reliable oper- (b) When warranted by conditions,
ation. such as unstable bottom conditions,
(a) You must install the SSSV at a permafrost, hydrate formation, and
depth at least 100 feet below the paraffin problems, the District Man-
mudline. When warranted by condi- ager must approve the setting depth of
tions, such as unstable bottom condi- the subsurface safety device for a shut-
tions, permafrost, hydrate formation, in well on a case-by-case basis.
or paraffin problems, the District Man-
ager may approve an alternate setting § 250.830 Subsurface safety devices in
depth on a case-by-case basis. injection wells—subsea trees.
(b) The well must not be open to flow
You must install a surface-controlled
while an SSSV is inoperable, unless
specifically approved by the District SSSV or an injection valve capable of
Manager in an APM. preventing backflow in all injection
(c) You must design, install, main- wells. This requirement is not applica-
tain, inspect, repair, and test all ble if the District Manager determines
SSSVs in accordance with your Deep- that the well is incapable of natural
water Operations Plan (DWOP) and flow. You must verify the no-flow con-
API RP 14B (incorporated by reference dition of the well annually.
157
§ 250.831 30 CFR Ch. II (7–1–18 Edition)
§ 250.831 Alteration or disconnection greater than allowed in § 250.880, you

of subsea pipeline or umbilical. must notify the appropriate District
If a necessary alteration or dis- Office and designate the USV2 or an-
connection of the pipeline or umbilical other qualified valve (e.g., an AIV) that
of any subsea well would affect your meets all the requirements of this sub-
ability to monitor casing pressure or to part for USVs as the USV1. The USV2
test any subsea valves or equipment, must be located upstream of the choke.
you must contact the appropriate Dis-
trict Office at least 48 hours in advance § 250.834 Use of USVs.
and submit a repair or replacement You must install, maintain, inspect,
plan to conduct the required moni- repair, and test any valve designated as
toring and testing. You must not alter the primary USV in accordance with
or disconnect until the repair or re- this subpart, your DWOP (as specified
placement plan is approved. in §§ 250.286 through 250.295), and API
RP 14H (incorporated by reference as
§ 250.832 Additional safety equip- specified in § 250.198). For additional
ment—subsea trees.
USV testing requirements, refer to
(a) You must equip all tubing instal- § 250.880.
lations that have a wireline- or pump
down-retrievable subsurface safety de- § 250.835 Specification for all boarding
vice installed after May 31, 1988, with a shutdown valves (BSDVs) associ-
landing nipple, with flow couplings, or ated with subsea systems.
other protective equipment above and You must install a BSDV on the pipe-
below it to provide for the setting of line boarding riser. All new BSDVs and
the device. any BSDVs removed from service for
(b) The control system for all sur- remanufacturing or repair and their ac-
face-controlled SSSVs must be an inte- tuators installed on the OCS must
gral part of the platform ESD. meet the requirements specified in
(c) In addition to the activation of §§ 250.801 through 250.803. In addition,
the ESD by manual action on the plat- you must:
form, the system may be activated by (a) Ensure that the internal design
a signal from a remote location. pressure(s) of the pipeline(s), riser(s),
§ 250.833 Specification for underwater and BSDV(s) is fully rated for the max-
safety valves (USVs). imum pressure of any input source and
complies with the design requirements
All USVs, including those designated set forth in subpart J, unless BSEE ap-
as primary or secondary, and any alter- proves an alternate design.
nate isolation valve (AIV) that acts as
(b) Use a BSDV that is fire rated for
a USV, if applicable, and their actu-
30 minutes, and is pressure rated for
ators, must conform to the require-
the maximum allowable operating
ments specified in §§ 250.801 through
pressure (MAOP) approved in your
250.803. A production master or wing
pipeline application.
valve may qualify as a USV under API
Spec. 6A and API Spec. 6AV1 (both in- (c) Locate the BSDV within 10 feet of
corporated by reference as specified in the first point of access to the boarding
§ 250.198). pipeline riser (i.e., within 10 feet of the
(a) Primary USV (USV1). You must edge of platform if the BSDV is hori-
install and designate one USV on a zontal, or within 10 feet above the first
subsea tree as the USV1. The USV1 accessible working deck, excluding the
must be located upstream of the choke boat landing and above the splash zone,
valve. As provided in paragraph (b) of if the BSDV is vertical).
this section, you must inform BSEE if (d) Install a temperature safety ele-
the primary USV designation changes. ment (TSE) and locate it within 5 feet
(b) Secondary USV (USV2). You may of each BSDV.
equip your tree with two or more
valves qualified to be designated as a § 250.836 Use of BSDVs.
USV, one of which may be designated You must install, inspect, maintain,
as the USV2. If the USV1 fails to oper- repair, and test all new BSDVs and
ate properly or exhibits a leakage rate BSDVs that you remove from service
158
for remanufacturing or repair in ac- (c) In the event of an emergency, you

cordance with API RP 14H (incor- must operate your production system
porated by reference as specified in according to the valve closure times in
§ 250.198) for SSVs. If any BSDV does the applicable tables in §§ 250.838 and
not operate properly or if any gas fluid 250.839 for the following conditions:
and/or liquid fluid flow is observed dur- (1) Process upset. In the event an
ing the leakage test, as described in upset in the production process train
§ 250.880, you must shut-in all sources occurs downstream of the BSDV, you
to the BSDV and immediately repair or must close the BSDV in accordance
replace the valve. with the applicable tables in §§ 250.838
and 250.839. You may reopen the BSDV
§ 250.837 Emergency action and safety to blow down the pipeline to prevent
system shutdown—subsea trees. hydrates, provided you have secured
(a) In the event of an emergency, the well(s) and ensured adequate pro-
such as an impending named tropical tection.
storm or hurricane, you must shut-in (2) Pipeline pressure safety high and
all subsea wells unless otherwise ap- low (PSHL) sensor. In the event that ei-
proved by the District Manager. A ther a high or a low pressure condition
shut-in is defined as a closed BSDV, is detected by a PSHL sensor located
USV, and surface-controlled SSSV. upstream of the BSDV, you must se-
(b) When operating a mobile offshore cure the affected well and pipeline, and
all wells and pipelines associated with
drilling unit (MODU) or other type of
a dual or multi pipeline system, by
workover vessel in an area with pro-
closing the BSDVs, USVs, and surface-
ducing subsea wells, you must:
controlled SSSVs in accordance with
(1) Suspend production from all such the applicable tables in §§ 250.838 and
wells that could be affected by a 250.839. You must obtain approval from
dropped object, including upstream the appropriate District Manager to re-
wells that flow through the same pipe- sume production in the unaffected
line; or pipeline(s) of a dual or multi pipeline
(2) Establish direct, real-time com- system. If the PSHL sensor activation
munications between the MODU or was a false alarm, you may return the
other type of workover vessel and the wells to production without contacting
production facility control room and the appropriate District Manager.
prepare a plan to be submitted to the (3) ESD/TSE (platform). In the event of
appropriate District Manager for ap- an ESD activation that is initiated be-
proval, as part of an Application for cause of a platform ESD or platform
Permit to Drill (BSEE–0123) or an Ap- TSE not associated with the BSDV,
plication for Permit to Modify (BSEE– you must close the BSDV, USV, and
0124), to shut-in any wells that could be surface-controlled SSSV in accordance
affected by a dropped object. If an ob- with the applicable tables in §§ 250.838
ject is dropped, the driller (or other au- and 250.839.
thorized rig floor personnel) must im- (4) Subsea ESD (platform) or BSDV
mediately secure the well directly TSE. In the event of an emergency
under the MODU or other type of shutdown activation that is initiated
workover vessel using the ESD station by the host platform due to an abnor-
near the driller’s console while simul- mal condition subsea, or a TSE associ-
taneously communicating with the ated with the BSDV, you must close
platform to shut-in all affected wells. the BSDV, USV, and surface-controlled
You must also maintain without dis- SSSV in accordance with the applica-
ruption, and continuously verify, com- ble tables in §§ 250.838 and 250.839.
munication between the platform and (5) Subsea ESD (MODU). In the event
the MODU or other type of workover of an ESD activation that is initiated
vessel. If communication is lost be- by a dropped object from a MODU or
tween the MODU or other type of other type of workover vessel, you
workover vessel and the platform for 20 must secure all wells in the proximity
minutes or more, you must shut-in all of the MODU or other type of workover
wells that could be affected by a vessel by closing the USVs and surface-
dropped object. controlled SSSVs in accordance with
159
§ 250.838 30 CFR Ch. II (7–1–18 Edition)
the applicable tables in §§ 250.838 and (1) Design the subsea control system
250.839. You must notify the appro- to meet the valve closure times listed
priate District Manager before resum- in paragraphs (b) and (d) of this section
ing production. or your approved DWOP; and
(d) Following an ESD or fire, you (2) Verify the valve closure times
must bleed your low pressure (LP) and upon installation. The District Man-
high pressure (HP) hydraulic systems ager may require you to verify the clo-
in accordance with the applicable ta- sure time of the USV(s) through visual
bles in §§ 250.838 and 250.839 to ensure
authentication by diver or ROV.
that the valves are locked out of serv-
ice and cannot be reopened inadvert- (b) You must comply with the max-
ently. imum allowable valve closure times
and hydraulic system bleeding require-
§ 250.838 What are the maximum al- ments listed in the following table or
lowable valve closure times and hy- your approved DWOP as long as com-
draulic bleeding requirements for munication is maintained with the
an electro-hydraulic control sys-
tem? platform or with the MODU or other
type of workover vessel:
(a) If you have an electro-hydraulic
control system, you must:
VALVE CLOSURE TIMING, ELECTRO-HYDRAULIC CONTROL SYSTEM
Your alter- Your surface- Your LP Your HP
Your pipeline
If you have the Your USV1 Your USV2 nate isolation controlled hydraulic hydraulic
BSDV
following. . . must. . . must. . . valve SSSV system system
must. . . must. . . must. . . must. . . must. . .
(1) Process Close within [no requirements] [no require- [no require- [no require-
upset. 45 seconds ments]. ments]. ments].
after sen-
sor activa-
tion.
(2) Pipeline Close within Close one or more valves within 2 minutes Close within [no require- Initiate unre-
PSHL. 45 seconds and 45 seconds after sensor activation. Close 60 minutes ments]. stricted
after sen- the designated USV1 within 20 minutes after after sen- bleed with-
sor activa- sensor activation. sor activa- in 24 hours
tion. tion. If you after sen-
use a 60- sor activa-
minute tion.
manual re-
settable
timer, you
may con-
tinue to
reset the
time for
closure up
to a max-
imum of 24
hours total.
(3) ESD/TSE Close within Close within Close within 20 minutes after Close within Initiate unre- Initiate unre-
(Platform). 45 seconds 5 minutes ESD or sensor activation. 20 minutes stricted stricted
after ESD after ESD after ESD bleed with- bleed with-
or sensor or sensor or sensor in 60 min- in 60 min-
activation. activation. activation. utes after utes after
If you use If you use ESD or ESD or
a 5-minute a 20- sensor acti- sensor acti-
resettable minute vation. If vation. If
timer, you manual re- you use a you use a
may con- settable 60-minute 60-minute
tinue to timer, you manual re- manual re-
reset the may con- settable settable
time for tinue to timer you timer you
closure up reset the must ini- must ini-
to a max- time for tiate unre- tiate unre-
imum of 20 closure up stricted stricted
minutes to a max- bleed with- bleed with-

total. imum of 60 in 24 hours. in 24
minutes hours.
total.
160
VALVE CLOSURE TIMING, ELECTRO-HYDRAULIC CONTROL SYSTEM—Continued

Your pipeline
BSDV
(4) Subsea Close within Close one or more valves within 2 minutes Close within Initiate unre- Initiate unre-
ESD (Plat- 45 seconds and 45 seconds after ESD or sensor activa- 10 minutes stricted stricted
form) or after ESD tion. Close all tree valves within 10 minutes after ESD bleed with- bleed with-
BSDV TSE. or sensor after ESD or sensor activation or sensor in 60 min- in 60 min-
activation. activation. utes after utes after
ESD or ESD or
sensor acti- sensor acti-
vation. vation.
(5) Subsea [no require- Initiate valve closure immediately. You may allow for closure Initiate unre- Initiate
ESD (MODU ments]. of the tree valves immediately prior to closure of the surface- stricted unrestricted
or other type controlled SSSV if desired. bleed im- bleed with-
of workover mediately. in 10 min-
vessel, utes after
Dropped ob- ESD acti-
ject). vation.
(c) If you have an electro-hydraulic system within 180 minutes after loss of
control system and experience a loss of communication.
communications (EH Loss of Comms), (3) You must obtain approval from
you must comply with the following: the appropriate District Manager be-
(1) If you can meet the EH Loss of fore continuing to produce after loss of
Comms valve closure timing conditions communication when you cannot meet
specified in the table in paragraph (d) the EH Loss of Comms valve closure
of this section, you must notify the ap- times specified in the table in para-
propriate District Office within 12 graph (d) of this section. In your re-
hours of detecting the loss of commu-
quest, include an alternate valve clo-
nication.
(2) If you cannot meet the EH Loss of sure timing table that your system is
Comms valve closure timing conditions able to achieve. The appropriate Dis-
specified in the table in paragraph (d) trict Manager may also approve an al-
of this section, you must notify the ap- ternate hydraulic bleed schedule to
propriate District Office immediately allow for hydrate mitigation and or-
after detecting the loss of communica- derly shut-in.
tion. You must shut-in production by (d) If you experience a loss of com-
initiating a bleed of the low pressure munications, you must comply with
(LP) hydraulic system or the high pres- the maximum allowable valve closure
sure (HP) hydraulic system within 120 times and hydraulic system bleeding
minutes after loss of communication. requirements listed in the following
You must bleed the other hydraulic table or your approved DWOP:
VALVE CLOSURE TIMING, ELECTRO-HYDRAULIC CONTROL SYSTEM WITH LOSS OF COMMUNICATION
Your pipeline
BSDV
upset. 45 seconds ments]. ments]. ments].
after sen-
sor activa-
tion.
161
§ 250.839 30 CFR Ch. II (7–1–18 Edition)
VALVE CLOSURE TIMING, ELECTRO-HYDRAULIC CONTROL SYSTEM WITH LOSS OF COMMUNICATION—

Continued
Your pipeline
BSDV
(2) Pipeline Close within Initiate closure when LP hydraulic system is Initiate clo- Initiate unre- Initiate unre-
PSHL. 45 seconds bled (close valves within 5 minutes after sen- sure when stricted stricted
after sensor activation). HP hydrau- bleed im- bleed with-
sor activa- lic system mediately, in 24 hours
tion. is bled concurrent after sen-
(close with- with sensor sor activa-
in 24 hours activation. tion.
after sen-
sor activa-
tion).
(3) ESD/TSE Close within Initiate closure when LP hydraulic system is Initiate clo- Initiate unre- Initiate unre-
(Platform). 45 seconds bled (close valves within 20 minutes after sure when stricted stricted
after ESD ESD or sensor activation). HP hydrau- bleed con- bleed with-
or sensor lic system current with in 60 min-
activation. is bled BSDV clo- utes after
(close with- sure (bleed ESD or
in 60 min- within 20 sensor acti-
utes after minutes vation.
ESD or after ESD
sensor acti- or sensor
vation). activation).
(4) Subsea Close within Initiate closure when LP hydraulic system is Initiate clo- Initiate unre- Initiate unre-
ESD (Plat- 45 seconds bled (close valves within 5 minutes after ESD sure when stricted stricted
form) or after ESD or sensor activation). HP hydrau- bleed im- bleed im-
BSDV TSE. or sensor lic system mediately. mediately,
activation. is bled allowing for
(close with- surface-
in 20 min- controlled
utes after SSSV clo-
ESD or sure.
sensor acti-
vation).
(5) Subsea [no require- Initiate closure immediately. You may allow for closure of the Initiate unre- Initiate unre-
ESD (MODU ments]. tree valves immediately prior to closure of the surface-con- stricted stricted
or other type trolled SSSV if desired. bleed im- bleed im-
of workover mediately. mediately.
vessel),
Dropped ob-
ject.
§ 250.839 What are the maximum al- (2) Verify the valve closure times
lowable valve closure times and hy- upon installation. The District Man-
draulic bleeding requirements for a ager may require you to verify the clo-
direct-hydraulic control system? sure time of the USV(s) through visual
(a) If you have a direct-hydraulic authentication by diver or ROV.
control system, you must: (b) You must comply with the max-
(1) Design the subsea control system imum allowable valve closure times
to meet the valve closure times listed and hydraulic system bleeding require-
in this section or your approved DWOP; ments listed in the following table or
and your approved DWOP:
VALVE CLOSURE TIMING, DIRECT-HYDRAULIC CONTROL SYSTEM
Your pipeline
BSDV
upset. 45 seconds ments]. ments]. ments]

after sen-
sor activa-
tion.
162
VALVE CLOSURE TIMING, DIRECT-HYDRAULIC CONTROL SYSTEM—Continued

Your pipeline
BSDV
(2) Flowline Close within Close one or more valves within 2 minutes Close within Complete Complete
PSHL. 45 seconds and 45 seconds after sensor activation. Close 24 hours bleed of bleed with-
after sen- the designated USV1 within 20 minutes after after sen- USV1, in 24 hours
sor activa- sensor activation. sor activa- USV2, and after sen-
tion. tion. the AIV sor activa-
within 20 tion.
minutes
after sen-
sor activa-
tion.
(3) ESD/TSE Close within Close all valves within 20 minutes after ESD Close within Complete Complete
(Platform). 45 seconds or sensor activation. 60 minutes bleed of bleed with-
after ESD after ESD USV1, in 60 min-
or sensor or sensor USV2, and utes after
activation. activation. the AIV ESD or
within 20 sensor acti-
minutes vation.
after ESD
or sensor
activation.
(4) Subsea Close within Close one or more valves within 2 minutes Close within Complete Complete
ESD (Plat- 45 seconds and 45 seconds after ESD or sensor activa- 10 minutes bleed of bleed with-
form) or after ESD tion. Close all tree valves within 10 minutes after ESD USV1, in 10 min-
BSDV TSE. or sensor after ESD or sensor activation. or sensor USV2, and utes after
activation. activation. the AIV ESD or
within 10 sensor acti-
minutes vation.
after ESD
or sensor
activation.
(5) Subsea [no require- Initiate closure immediately. If desired, you may allow for clo- Initiate unre- Initiate unre-
ESD (MODU ments]. sure of the tree valves immediately prior to closure of the sur- stricted stricted
or other type face-controlled SSSV. bleed im- bleed im-
of workover mediately. mediately.
vessel),
Dropped ob-
ject.
PRODUCTION SAFETY SYSTEMS essing components other than those for

which Safety Analysis Checklists are
§ 250.840 Design, installation, and included in API RP 14C, you must uti-
maintenance—general. lize the analysis technique and docu-
You must design, install, and main- mentation specified in API RP 14C to
tain all production facilities and equip- determine the effects and requirements
ment including, but not limited to, sep- of these components on the safety sys-
arators, treaters, pumps, heat exchang- tem. Safety device requirements for
ers, fired components, wellhead injec- pipelines are contained in § 250.1004.
tion lines, compressors, headers, and (b) You must design, install, inspect,
flowlines in a manner that is efficient, repair, test, and maintain in operating
safe, and protects the environment. condition all platform production proc-
ess piping in accordance with API RP
§ 250.841 Platforms.
14E and API 570 (both incorporated by
(a) You must protect all platform reference as specified in § 250.198). The
production facilities with a basic and District Manager may approve tem-
ancillary surface safety system de- porary repairs to facility piping on a
signed, analyzed, installed, tested, and case-by-case basis for a period not to
maintained in operating condition in
exceed 30 days.
accordance with the provisions of API
RP 14C (incorporated by reference as
specified in § 250.198). If you use proc-
163
§ 250.842 30 CFR Ch. II (7–1–18 Edition)
§ 250.842 Approval of safety systems submit a production safety system ap-

design and installation features. plication to the District Manager for
approval. The application must include
(a) Before you install or modify a
the information prescribed in the fol-
production safety system, you must
lowing table:
You must submit: Details and/or additional requirements:
(1) A schematic piping and instrumentation diagram ................. Showing the following:
(i) Well shut-in tubing pressure;
(ii) Piping specification breaks, piping sizes;
(iii) Pressure relief valve set points;
(iv) Size, capacity, and design working pressures of separa-
tors, flare scrubbers, heat exchangers, treaters, storage
tanks, compressors and metering devices;
(v) Size, capacity, design working pressures, and maximum
discharge pressure of hydrocarbon-handling pumps;
(vi) Size, capacity, and design working pressures of hydro-
carbon-handling vessels, and chemical injection systems
handling a material having a flash point below 100 degrees
Fahrenheit for a Class I flammable liquid as described in API
RP 500 and 505 (both incorporated by reference as speci-
fied in § 250.198); and
(vii) Size and maximum allowable working pressures as deter-
mined in accordance with API RP 14E (incorporated by ref-
erence as specified in § 250.198).
(2) A safety analysis flow diagram (API RP 14C, Appendix E) If processing components are used, other than those for which
and the related Safety Analysis Function Evaluation (SAFE) Safety Analysis Checklists are included in API RP 14C, you
chart (API RP 14C, subsection 4.3.3) (incorporated by ref- must use the same analysis technique and documentation to
erence as specified in § 250.198). determine the effects and requirements of these components
upon the safety system.
(3) Electrical system information, including ................................. (i) A plan for each platform deck and outlining all classified
areas. You must classify areas according to API RP 500 or
API RP 505 (both incorporated by reference as specified in
§ 250.198).
(ii) Identification of all areas where potential ignition sources,
including non-electrical ignition sources, are to be installed
showing:
(A) All major production equipment, wells, and other significant
hydrocarbon sources, and a description of the type of deck-
ing, ceiling, walls (e.g., grating or solid), and firewalls and;
(B) The location of generators, control rooms, panel boards,
major cabling/conduit routes, and identification of the primary
wiring method (e.g., type cable, conduit, wire) and;
(iii) One-line electrical drawings of all electrical systems includ-
ing the safety shutdown system. You must also include a
functional legend.
(4) Schematics of the fire and gas-detection systems ................ Showing a functional block diagram of the detection system,
including the electrical power supply and also including the
type, location, and number of detection sensors; the type
and kind of alarms, including emergency equipment to be
activated; the method used for detection; and the method
and frequency of calibration.
(5) The service fee listed in § 250.125 ........................................ The fee you must pay will be determined by the number of
components involved in the review and approval process.
(b) In the production safety system priate registered professional engi-

application, you must also certify the neer(s). The registered professional en-
following: gineer must be registered in a State or
(1) That all electrical installations Territory of the United States and
were designed according to API RP 14F have sufficient expertise and experi-
or API RP 14FZ, as applicable (incor- ence to perform the duties; and
porated by reference as specified in (3) That a hazards analysis was per-
§ 250.198); formed in accordance with § 250.1911
(2) That the designs for the mechan- and API RP 14J (incorporated by ref-
ical and electrical systems under para- erence as specified in § 250.198), and
graph (a) of this section were reviewed,
approved, and stamped by an appro-
164
that you have a hazards analysis pro- fice nearest the OCS facility or at
gram in place to assess potential haz- other locations conveniently available
ards during the operation of the facil- to the District Manager. As-built pip-
ity. ing and instrumentation diagrams
(c) Before you begin production, you must be maintained at a secure on-
must certify, in a letter to the District shore location and readily available
Manager, that the mechanical and offshore. These documents must be
electrical systems were installed in ac- made available to BSEE upon request
cordance with the approved designs. and be retained for the life of the facil-
(d) Within 60 days after production ity. All approvals are subject to field
commences, you must certify, in a let- verifications.
ter to the District Manager, that the
as-built diagrams for the new or modi- §§ 250.843–250.849 [Reserved]
fied production safety systems outlined
in paragraphs (a)(1) and (2) of this sec- ADDITIONAL PRODUCTION SYSTEM
tion and the piping and instrumenta- REQUIREMENTS
tion diagrams are on file and have been
certified correct and stamped by an ap- § 250.850 Production system require-
ments—general.
propriate registered professional engi-
neer(s). The registered professional en- You must comply with the produc-
gineer must be registered in a State or tion safety system requirements in
Territory in the United States and §§ 250.851 through 250.872, in addition to
have sufficient expertise and experi- the practices contained in API RP 14C
ence to perform the duties. (incorporated by reference as specified
(e) All as-built diagrams outlined in in § 250.198).
paragraphs (a)(1) and (2) of this section
must be submitted to the District Man- § 250.851 Pressure vessels (including
ager within 60 days after production heat exchangers) and fired vessels.
commences. (a) Pressure vessels (including heat
(f) You must maintain information exchangers) and fired vessels sup-
concerning the approved designs and porting production operations must
installation features of the production meet the requirements in the following
safety system at your offshore field of- table:
Item name Applicable codes and requirements
(1) Pressure and fired vessels .................................................... (i) Must be designed, fabricated, and code stamped according
to applicable provisions of sections I, IV, and VIII of the
ANSI/ASME Boiler and Pressure Vessel Code (incorporated
by reference as specified in § 250.198).
(ii) Must be repaired, maintained, and inspected in accordance
with API 510 (incorporated by reference as specified in
§ 250.198).
(2) Existing uncoded pressure and fired vessels (i) in use on Must be justified and approval obtained from the District Man-
November 7, 2016; (ii) with an operating pressure greater ager for their continued use after March 1, 2018.
than 15 psig; and (iii) that are not code stamped in accord-
ance with the ANSI/ASME Boiler and Pressure Vessel Code.
(3) Pressure relief valves ............................................................ (i) Must be designed and installed according to applicable pro-
visions of sections I, IV, and VIII of the ASME Boiler and
Pressure Vessel Code (incorporated by reference as speci-
fied in § 250.198).
(ii) Must conform to the valve sizing and pressure-relieving re-
quirements specified in these documents, but must be set no
higher than the maximum-allowable working pressure of the
vessel (except for cases where staggered set pressures are
required for configurations using multiple relief valves or re-
dundant valves installed and designated for operator use
only).
(iii) Vents must be positioned in such a way as to prevent fluid
from striking personnel or ignition sources.
(4) Steam generators operating at less than 15 psig ................. Must be equipped with a level safety low (LSL) sensor which
will shut off the fuel supply when the water level drops below
the minimum safe level.
165
§ 250.852 30 CFR Ch. II (7–1–18 Edition)
Item name Applicable codes and requirements
(5) Steam generators operating at 15 psig or greater ................ (i) Must be equipped with a level safety low (LSL) sensor
which will shut off the fuel supply when the water level drops
below the minimum safe level.
(ii) Must be equipped with a water-feeding device that will
automatically control the water level except when closed
loop systems are used for steam generation.
(b) Operating pressure ranges. You You must maintain the pressure re-
must use pressure recording devices to cording information you used to deter-
establish the new operating pressure mine current operating pressure ranges
ranges of pressure vessels at any time at your field office nearest the OCS fa-
that the normalized system pressure cility or at another location conven-
changes by 50 psig or 5 percent. Once iently available to the District Man-
system pressure has stabilized, pres- ager for as long as the information is
sure recording devices must be utilized valid.
to establish the new operating pressure (c) Pressure shut-in sensors must be
ranges. The pressure recording devices set according to the following table
must document the pressure range over (initial set points for pressure sensors
time intervals that are no less than 4 must be set utilizing gauge readings
hours and no more than 30 days long. and engineering design):
Type of sensor Settings Additional requirements
(1) High pressure shut-in sen- Must be set no higher than 15 Must also be set sufficiently below (5 percent or 5 psi, which-
sor,. percent or 5 psi (whichever ever is greater) the relief valve’s set pressure to assure
is greater) above the highest that the pressure source is shut-in before the relief valve
operating pressure of the activates.
vessel.
(2) Low pressure shut-in sen- Must be set no lower than 15 You must receive specific approval from the District Manager
sor,. percent or 5 psi (whichever for activation limits on pressure vessels that have a pres-
is greater) below the lowest sure safety low (PSL) sensor set less than 5 psi.
pressure in the operating
range.
§ 250.852 Flowlines/Headers. range over time intervals that are no

(a) You must: less than 4 hours and no more than 30
(1) Equip flowlines from wells with days long.
both PSH and PSL sensors. You must (3) Maintain the most recent pressure
locate these sensors in accordance with recording information you used to de-
section A.1 of API RP 14C (incor- termine operating pressure ranges at
porated by reference as specified in your field office nearest the OCS facil-
§ 250.198). ity or at another location conveniently
(2) Use pressure recording devices to available to the District Manager for
establish the new operating pressure as long as the information is valid.
ranges of flowlines at any time when (b) Flowline shut-in sensors must
the normalized system pressure meet the requirements in the following
changes by 50 psig or 5 percent, which- table (initial set points for pressure
ever is higher. The pressure recording sensors must be set using gauge read-
devices must document the pressure ings and engineering design):
Type of flowline sensor Settings
(1) PSH sensor, ........................................................................... Must be set no higher than 15 percent or 5 psi (whichever is
greater) above the highest operating pressure of the flowline.
In all cases, the PSH must be set sufficiently below the max-
imum shut-in wellhead pressure or the gas-lift supply pres-
sure to ensure actuation of the SSV. Do not set the PSH
sensor above the maximum allowable working pressure of

the flowline.
166
Type of flowline sensor Settings
(2) PSL sensor, ........................................................................... Must be set no lower than 15 percent or 5 psi (whichever is
greater) below the lowest operating pressure of the flowline
in which it is installed.
(c) If a well flows directly to a pipe- (e) If you are installing flowlines con-
line before separation, the flowline and structed of unbonded flexible pipe on a
valves from the well located upstream floating platform, you must:
of and including the header inlet (1) Review the manufacturer’s Design
valve(s) must have a working pressure Methodology Verification Report and
equal to or greater than the maximum the independent verification agent’s
shut-in pressure of the well unless the (IVA’s) certificate for the design meth-
flowline is protected by one of the fol- odology contained in that report to en-
lowing: sure that the manufacturer has com-
plied with the requirements of API
(1) A relief valve which vents into the
Spec. 17J (incorporated by reference as
platform flare scrubber or some other
specified in § 250.198);
location approved by the District Man- (2) Determine that the unbonded
ager. You must design the platform flexible pipe is suitable for its intended
flare scrubber to handle, without liq- purpose;
uid-hydrocarbon carryover to the flare, (3) Submit to the District Manager
the maximum-anticipated flow of hy- the manufacturer’s design specifica-
drocarbons that may be relieved to the tions for the unbonded flexible pipe;
vessel; or and
(2) Two SSVs with independent PSH (4) Submit to the District Manager a
sensors connected to separate relays statement certifying that the pipe is
and sensing points and installed with suitable for its intended use and that
adequate volume upstream of any the manufacturer has complied with
block valve to allow sufficient time for the IVA requirements of API Spec. 17J
the SSVs to close before exceeding the (incorporated by reference as specified
maximum allowable working pressure. in § 250.198).
Each independent PSH sensor must (f) Automatic pressure or flow regu-
close both SSVs along with any associ- lating choking devices must not pre-
ated flowline PSL sensor. If the max- vent the normal functionality of the
imum shut-in pressure of a dry tree process safety system that includes,
satellite well(s) is greater than 11⁄2 but is not limited to, the flowline pres-
times the maximum allowable pressure sure safety devices and the SSV.
(g) You may install a single flow
of the pipeline, a pressure safety valve
safety valve (FSV) on the platform to
(PSV) of sufficient size and relief ca-
protect multiple subsea pipelines or
pacity to protect against any SSV wells that tie into a single pipeline
leakage or fluid hammer effect may be riser provided that you install an FSV
required by the District Manager. The for each riser on the platform and test
PSV must be installed upstream of the it in accordance with the criteria pre-
host platform boarding valve and vent scribed in § 250.880(c)(2)(v).
into the platform flare scrubber or (h) You may install a single PSHL
some other location approved by the sensor on the platform to protect mul-
District Manager. tiple subsea pipelines that tie into a
(d) If a well flows directly to the single pipeline riser provided that you
pipeline from a header without prior install a PSHL sensor for each riser on
separation, the header, the header inlet the platform and locate it upstream of
valves, and pipeline isolation valve the BSDV.
must have a working pressure equal to
or greater than the maximum shut-in § 250.853 Safety sensors.
pressure of the well unless the header You must ensure that:
is protected by the safety devices as (a) All shutdown devices, valves, and
outlined in paragraph (c) of this sec- pressure sensors function in a manual
tion. reset mode;
167
§ 250.854 30 CFR Ch. II (7–1–18 Edition)
(b) Sensors with integral automatic tronic ESD stations must be wired as
reset are equipped with an appropriate de-energize to trip circuits or as super-
device to override the automatic reset vised circuits. Because of the key role
mode; and of the ESD system in the platform
(c) All pressure sensors are equipped safety system, all ESD components
to permit testing with an external must be of high quality and corrosion
pressure source. resistant and stations must be unique-
ly identified. Only ESD stations at the
§ 250.854 Floating production units
equipped with turrets and turret- boat landing may utilize a loop of
mounted systems. breakable synthetic tubing in lieu of a
valve or electric switch. This breakable
(a) For floating production units
equipped with an auto slew system, loop is not required to be physically lo-
you must integrate the auto slew con- cated on the boat landing, but must be
trol system with your process safety accessible from a vessel adjacent to or
system allowing for automatic shut-in attached to the facility.
of the production process, including (b) You must maintain a schematic
the sources (subsea wells, subsea of the ESD that indicates the control
pumps, etc.) and releasing of the buoy. functions of all safety devices for the
Your safety system must immediately platforms on the platform, at your
initiate a process system shut-in ac- field office nearest the OCS facility, or
cording to §§ 250.838 and 250.839 and re- at another location conveniently avail-
lease the buoy to prevent hydrocarbon able to the District Manager, for the
discharge and damage to the subsea in- life of the facility.
frastructure when the following are en-
countered: § 250.856 Engines.
(1) Your buoy is clamped, (a) Engine exhaust. You must equip
(2) Your auto slew mode is activated, all engine exhausts to comply with the
and
insulation and personnel protection re-
(3) You encounter a ship heading/po-
quirements of API RP 14C, section 4.2
sition failure or an exceedance of the
(incorporated by reference as specified
rotational tolerances of the clamped
buoy. in § 250.198). You must equip exhaust
(b) For floating production units piping from diesel engines with spark
equipped with swivel stack arrange- arresters.
ments, you must equip the portion of (b) Diesel engine air intake. You must
the swivel stack containing hydro- equip diesel engine air intakes with a
carbons with a leak detection system. device to shut down the diesel engine
Your leak detection system must be in the event of runaway (i.e., over-
tied into your production process sur- speed). You must equip diesel engines
face safety system allowing for auto- that are continuously attended with ei-
matic shut-in of the system. Upon seal ther remotely operated manual or
system failure and detection of a hy- automatic shutdown devices. You must
drocarbon leak, your surface safety equip diesel engines that are not con-
system must immediately initiate a tinuously attended with automatic
process system shut-in according to shutdown devices. The following diesel
§§ 250.838 and 250.839. engines do not require a shutdown de-
vice: Engines for fire water pumps; en-
§ 250.855 Emergency shutdown (ESD)
system. gines on emergency generators; engines
that power BOP accumulator systems;
The ESD system must conform to the engines that power air supply for con-
requirements of Appendix C, section fined entry personnel; temporary
C1, of API RP 14C (incorporated by ref-
equipment on non-producing platforms;
erence as specified in § 250.198), and the
booster engines whose purpose is to
following:
start larger engines; and engines that
(a) The manually operated ESD
valve(s) must be quick-opening and power portable single cylinder rig

non-restricted to enable the rapid actu- washers.
ation of the shutdown system. Elec-
168
§ 250.857 Glycol dehydration units. vessels can be isolated from all input
(a) You must install a pressure relief sources. All automatic SDVs installed
system or an adequate vent on the gly- in compressor suction and fuel gas pip-
col regenerator (reboiler) to prevent ing must also be actuated by the shut-
over pressurization. The discharge of down of the prime mover. Unless other-
the relief valve must be vented in a wise approved by the District Manager,
nonhazardous manner. gas-well gas affected by the closure of
(b) You must install the FSV on the the automatic SDV on the suction side
dry glycol inlet to the glycol contact of a compressor must be diverted to the
tower as near as practical to the glycol pipeline, diverted to a flare or vent in
contact tower. accordance with §§ 250.1160 or 250.1161,
(c) You must install the shutdown or shut-in at the wellhead.
valve (SDV) on the wet glycol outlet (4) You must install a blowdown
from the glycol contact tower as near valve on the discharge line of all com-
as practical to the glycol contact pressor installations that are 1,000
tower. horsepower (746 kilowatts) or greater.
(b) Once system pressure has sta-
§ 250.858 Gas compressors. bilized, you must use pressure record-
(a) You must equip compressor in- ing devices to establish the new oper-
stallations with the following protec- ating pressure ranges for compressor
tive equipment as required in API RP discharge sensors whenever the nor-
14C, sections A.4 and A.8 (incorporated malized system pressure changes by 50
by reference as specified in § 250.198). psig or 5 percent, whichever is higher.
(1) A pressure safety high (PSH) sen- The pressure recording devices must
sor, a pressure safety low (PSL) sensor, document the pressure range over time
a pressure safety valve (PSV), a level intervals that are no less than 4 hours
safety high (LSH) sensor, and a level and no more than 30 days long. You
safety low (LSL) sensor to protect each must maintain the most recent pres-
interstage and suction scrubber. sure recording information that you
(2) A temperature safety high (TSH) used to determine operating pressure
sensor in the discharge piping of each ranges at your field office nearest the
compressor cylinder or case discharge. OCS facility or at another location
(3) You must design the PSH and conveniently available to the District
PSL sensors and LSH controls pro- Manager.
tecting compressor suction and (c) Pressure shut-in sensors must be
interstage scrubbers to actuate auto- set according to the following table
matic SDVs located in each compressor (initial set points for pressure sensors
suction and fuel gas line so that the must be set utilizing gauge readings
compressor unit and the associated and engineering design):
169
VerDate Sep<11>2014
(1) PSH sensor, Must be set no higher than 15 percent or 5 psi (whichever is greater) above the highest operating pres- Must also be set sufficiently below (5 percent or 5
10:34 Sep 13, 2018

sure of the discharge line and sufficiently below the maximum discharge pressure to ensure actuation psi, whichever is greater) the set pressure of the
of the suction SDV. PSV to assure that the pressure source is shut-in § 250.858
before the PSV activates.
(2) PSL sensor, Must be set no lower than 15 percent or 5 psi (whichever is greater) below the lowest operating pres-
sure of the discharge line in which it is installed.
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170
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244126
30 CFR Ch. II (7–1–18 Edition)
§ 250.859 Firefighting systems. (4) For operations in subfreezing cli-

(a) On fixed facilities, to protect all mates, you must furnish evidence to
areas where production-handling equip- the District Manager that the fire-
ment is located, you must install firefighting system is suitable for those
fighting systems that meet the require- conditions.
ments of this paragraph. You must in- (5) You must obtain approval from
stall a firewater system consisting of the District Manager before installing
rigid pipe with fire hose stations and/or any firefighting system.
fixed firewater monitors to protect all (6) All firefighting equipment located
areas where production-handling equip- on a facility must be in good working
ment is located. Your firewater system order whether approved as the primary,
must include installation of a fixed secondary, or ancillary firefighting
water spray system in enclosed well- system.
bay areas where hydrocarbon vapors (b) On floating facilities, to protect
may accumulate. all areas where production-handling
(1) Your firewater system must con- equipment is located, you must install
form to API RP 14G (incorporated by a firewater system consisting of rigid
reference as specified in § 250.198). pipe with fire hose stations and/or fixed
(2) Fuel or power for firewater pump firewater monitors. You must install a
drivers must be available for at least 30 fixed water spray system in enclosed
minutes of run time during a platform well-bay areas where hydrocarbon va-
shut-in. If necessary, you must install pors may accumulate. Your firewater
an alternate fuel or power supply to system must conform to the USCG re-
provide for this pump operating time quirements for firefighting systems on
unless the District Manager has ap- floating facilities.
proved an alternate firefighting sys- (c) Except as provided in paragraph
tem. In addition: (c)(1) and (2) of this section, on fixed
(i) As of September 7, 2017, you must and floating facilities, if you are re-
have equipped all new firewater pump quired to maintain a firewater system
drivers with automatic starting capa- and the system becomes inoperable,
bilities upon activation of the ESD, fu- you must shut-in your production oper-
sible loop, or other fire detection sys- ations while making the necessary re-
tem. pairs. For fixed facilities only, you
(ii) For electric-driven firewater may continue your production oper-
pump drivers, to provide for a potential ations on a temporary basis while you
loss of primary power, you must install make the necessary repairs, provided
an automatic transfer switch to cross that:
over to an emergency power source in (1) You request that the appropriate
order to maintain at least 30 minutes District Manager approve the use of a
of run time. The emergency power chemical firefighting system on a tem-
source must be reliable and have ade- porary basis (for a period up to 7 days)
quate capacity to carry the locked- while you make the necessary repairs;
rotor currents of the fire pump motor (2) If you are unable to complete re-
and accessory equipment. pairs during the approved time period
(iii) You must route power cables or because of circumstances beyond your
conduits with wires installed between control, the District Manager may
the fire water pump drivers and the grant multiple extensions to your pre-
automatic transfer switch away from viously approved request to use a
hazardous-classified locations that can chemical firefighting system for peri-
cause flame impingement. Power ca- ods up to 7 days each.
bles or conduits with wires that con-
nect to the fire water pump drivers § 250.860 Chemical firefighting system.
must be capable of maintaining circuit For fixed platforms:
integrity for not less than 30 minutes (a) On minor unmanned platforms,
of flame impingement. you may use a U.S. Coast Guard type
(3) You must post, in a prominent and size rating ‘‘B–II’’ portable dry
place on the facility, a diagram of the chemical unit (with a minimum UL

firefighting system showing the loca- Rating (US) of 60–B:C) or a 30-pound
tion of all firefighting equipment. portable dry chemical unit, in lieu of a
171
§ 250.860 30 CFR Ch. II (7–1–18 Edition)
water system, as long as you ensure more than one item of production proc-
that the unit is available on the plat- essing equipment.
form when personnel are on board. (3) A manned platform is one that is
(1) A minor platform is a structure attended 24 hours a day or one on
with zero to five completions and no which personnel are quartered over-
more than one item of production proc- night.
essing equipment. (c) On major platforms and minor
(2) An unmanned platform is one that
manned platforms, to obtain approval
is not attended 24 hours a day or one on
which personnel are not quartered to use a chemical-only fire prevention
overnight. and control system in lieu of a water
(b) On major platforms and minor system under paragraph (b) of this sec-
manned platforms, you may use a fire- tion, you must submit to the District
fighting system using chemicals-only Manager:
in lieu of a water-based system if the (1) A justification for asserting that
District Manager determines that the the use of a chemical system provides
use of a chemical system provides equivalent fire-protection control. The
equivalent fire-protection control and justification must address fire preven-
would not increase the risk to human tion, fire protection, fire control, and
safety. firefighting on the platform; and
(1) A major platform is a structure (2) A risk assessment demonstrating
with either six or more completions or that a chemical-only system would not
zero to five completions with more increase the risk to human safety. You
than one item of production processing must provide the following and any
equipment.
other important information in your
(2) A minor platform is a structure
risk assessment:
with zero to five completions and no
For the use of a chemical fire-
fighting system on major and
minor manned platforms, you Including . . .
must provide the following in
your risk assessment . . .
(i) Platform description ............. (A) The type and quantity of hydrocarbons (i.e., natural gas, oil) that are produced, handled,
stored, or processed at the facility.
(B) The capacity of any tanks on the facility that you use to store either liquid hydrocarbons or
other flammable liquids.
(C) The total volume of flammable liquids (other than produced hydrocarbons) stored on the
facility in containers other than bulk storage tanks. Include flammable liquids stored in paint
lockers, storerooms, and drums.
(D) If the facility is manned, provide the maximum number of personnel on board and the an-
ticipated length of their stay.
(E) If the facility is unmanned, provide the number of days per week the facility will be visited,
the average length of time spent on the facility per visit, the mode of transportation, and
whether or not transportation will be available at the facility while personnel are on board.
(F) A diagram that depicts: quarters location, production equipment location, fire prevention
and control equipment location, lifesaving appliances and equipment location, and evacu-
ation plan escape routes from quarters and all manned working spaces to primary evacu-
ation equipment.
(ii) Hazard assessment (facility (A) Identification of all likely fire initiation scenarios (including those resulting from maintenance
specific). and repair activities). For each scenario, discuss its potential severity and identify the igni-
tion and fuel sources.
(B) Estimates of the fire/radiant heat exposure that personnel could be subjected to. Show
how you have considered designated muster areas and evacuation routes near fuel sources
and have verified proper flare boom sizing for radiant heat exposure.
(iii) Human factors assessment (A) Descriptions of the fire-related training your employees and contractors have received. In-
(not facility specific). clude details on the length of training, whether the training was hands-on or classroom, the
training frequency, and the topics covered during the training.
(B) Descriptions of the training your employees and contractors have received in fire preven-
tion, control of ignition sources, and control of fuel sources when the facility is occupied.
(C) Descriptions of the instructions and procedures you have given to your employees and
contractors on the actions they should take if a fire occurs. Include those instructions and
procedures specific to evacuation. State how you convey this information to your employees
and contractors on the platform.
(iv) Evacuation assessment (fa- (A) A general discussion of your evacuation plan. Identify your muster areas (if applicable),
cility specific). both the primary and secondary evacuation routes, and the means of evacuation for both.
172
For the use of a chemical fire-

fighting system on major and
minor manned platforms, you Including . . .
must provide the following in
your risk assessment . . .
(B) Description of the type, quantity, and location of lifesaving appliances available on the fa-
cility. Show how you have ensured that lifesaving appliances are located in the near vicinity
of the escape routes.
(C) Description of the types and availability of support vessels, whether the support vessels
are equipped with a fire monitor, and the time needed for support vessels to arrive at the fa-
cility.
(D) Estimates of the worst case time needed for personnel to evacuate the facility should a fire
occur.
(v) Alternative protection as- (A) Discussion of the reasons you are proposing to use an alternative fire prevention and con-
sessment. trol system.
(B) Lists of the specific standards used to design the system, locate the equipment, and oper-
ate the equipment/system.
(C) Description of the proposed alternative fire prevention and control system/equipment. Pro-
vide details on the type, size, number, and location of the prevention and control equipment.
(D) Description of the testing, inspection, and maintenance program you will use to maintain
the fire prevention and control equipment in an operable condition. Provide specifics regard-
ing the type of inspection, the personnel who conduct the inspections, the inspection proce-
dures, and documentation and recordkeeping.
(vi) Conclusion .......................... A summary of your technical evaluation showing that the alternative system provides an equiv-
alent level of personnel protection for the specific hazards located on the facility.
(d) On major or minor platforms, if or storage containers for evidence of

BSEE has approved your request to use excessive sludging or deterioration;
a chemical-only fire suppressant sys- (b) Annually send samples of the
tem in lieu of a water system under foam concentrate to the manufacturer
paragraphs (b) and (c) of this section, or authorized representative for qual-
and if you make an insignificant ity condition testing. You must have
change to your platform subsequent to the sample tested to determine the spe-
that approval, you must document the cific gravity, pH, percentage of water
change and maintain the documenta- dilution, and solid content. Based on
tion for the life of the facility at either these results, the foam must be cer-
the facility or nearest field office for tified by an authorized representative
BSEE review and/or inspection. Do not of the manufacturer as suitable fire-
submit this documentation to the Dis- fighting foam consistent with the
trict Manager. However, if you make a original manufacturer’s specifications.
significant change to your platform The certification document must be
(e.g., placing a storage vessel with a ca- readily accessible for field inspection.
pacity of 100 barrels or more on the fa- In lieu of sampling and certification,
cility, adding production equipment), you may choose to replace the total in-
or if you plan to man an unmanned ventory of foam with suitable new
platform temporarily, you must submit stock;
(c) Ensure that the quantity of con-
a new request for approval, including
centrate meets design requirements,
an updated risk assessment if pre-
and that tanks or containers are kept
viously required, to the appropriate
full, with space allowed for expansion.
District Manager. You must maintain,
for the life of the facility, the most re- § 250.862 Fire and gas-detection sys-
cent documentation that you sub- tems.
mitted to BSEE at the facility or near- For production processing areas only:
est field office. (a) You must install fire (flame, heat,
or smoke) sensors in all enclosed clas-
§ 250.861 Foam firefighting systems.
sified areas. You must install gas sen-
When you install foam firefighting sors in all inadequately ventilated, en-
systems as part of a firefighting sys- closed classified areas.
tem that protects production handling (1) Adequate ventilation is defined as
areas, you must: ventilation that is sufficient to prevent

(a) Annually conduct an inspection of accumulation of significant quantities
the foam concentrates and their tanks of vapor-air mixture in concentrations
173
§ 250.863 30 CFR Ch. II (7–1–18 Edition)
over 25 percent of the lower explosive Guard, compliance with the U.S. Coast
limit. An acceptable method of pro- Guard regulations controls.
viding adequate ventilation is one that
provides a change of air volume each 5 § 250.863 Electrical equipment.
minutes or 1 cubic foot of air-volume You must design, install, and main-
flow per minute per square foot of solid tain electrical equipment and systems
floor area, whichever is greater. in accordance with the requirements in
(2) Enclosed areas (e.g., buildings, § 250.114.
living quarters, or doghouses) are de-
fined as those areas confined on more § 250.864 Erosion.
than 4 of their 6 possible sides by walls,
floors, or ceilings more restrictive to You must have a program of erosion
air flow than grating or fixed open control in effect for wells or fields that
louvers and of sufficient size to allow have a history of sand production. The
entry of personnel. erosion-control program may include
(3) A classified area is any area clas- sand probes, X-ray, ultrasonic, or other
sified Class I, Group D, Division 1 or 2, satisfactory monitoring methods. You
following the guidelines of API RP 500 must maintain records for each lease
(incorporated by reference as specified that indicate the wells that have ero-
in § 250.198), or any area classified Class sion-control programs in effect. You
I, Zone 0, Zone 1, or Zone 2, following must also maintain the results of the
the guidelines of API RP 505 (incor- programs for at least 2 years and make
porated by reference as specified in them available to BSEE upon request.
§ 250.198).
(b) All detection systems must be ca- § 250.865 Surface pumps.
pable of continuous monitoring. Fire- (a) You must equip pump installa-
detection systems and portions of com- tions with the protective equipment re-
bustible gas-detection systems related quired in API RP 14C, Appendix A—A.7,
to the higher gas-concentration levels Pumps (incorporated by reference as
must be of the manual-reset type. Com- specified in § 250.198).
bustible gas-detection systems related
(b) You must use pressure recording
to the lower gas-concentration level
may be of the automatic-reset type. devices to establish the new operating
(c) A fuel-gas odorant or an auto- pressure ranges for pump discharge
matic gas-detection and alarm system sensors at any time when the normal-
is required in enclosed, continuously ized system pressure changes by 50 psig
manned areas of the facility which are or 5 percent, whichever is higher. Once
provided with fuel gas. A gas detection system pressure has stabilized, pres-
system is not required for living quar- sure recording devices must be utilized
ters and doghouses that do not contain to establish the new operating pressure
a gas source and that are not located in ranges. The pressure recording devices
a classified area. must document the pressure range over
(d) The District Manager may require time intervals that are no less than 4
the installation and maintenance of a hours and no more than 30 days long.
gas detector or alarm in any poten- You must only maintain the most re-
tially hazardous area. cent pressure recording information
(e) Fire- and gas-detection systems that you used to determine operating
must be an approved type, and designed pressure ranges at your field office
and installed in accordance with API nearest the OCS facility or at another
RP 14C, API RP 14G, API RP 14F, API location conveniently available to the
RP 14FZ, API RP 500, and API RP 505 District Manager.
(all incorporated by reference as speci- (c) Pressure shut-in sensors must be
fied in § 250.198), provided that, if com- set according to the following table
pliance with any provision of those (initial set points for pressure sensors
standards would be in conflict with ap- must be set utilizing gauge readings
plicable regulations of the U.S. Coast and engineering design):
174
(1) PSH sensor .................... Must be no higher than 15 percent or 5 psi Must be set sufficiently below the maximum al-
(whichever is greater) above the highest op- lowable working pressure of the discharge
erating pressure of the discharge line. piping. The PSH must also be set at least 5
percent or 5 psi (whichever is greater) below
the set pressure of the PSV to assure that
the pressure source is shut-in before the
PSV activates.
(2) PSL sensor ..................... Must be set no lower than 15 percent or 5 psi
(whichever is greater) below the lowest oper-
ating pressure of the discharge line in which
it is installed.
(d) The PSL must be placed into serv- system for temporary quarters in pro-
ice when the pump discharge pressure duction processing areas or other clas-
has risen above the PSL sensing point, sified areas.
or within 45 seconds of the pump com- (c) Temporary equipment associated
ing into service, whichever is sooner. with the production process system, in-
(e) You may exclude the PSH and cluding equipment used for well testing
PSL sensors on small, low-volume and/or well clean-up, must be approved
pumps such as chemical injection-type by the District Manager.
pumps. This is acceptable if such a
pump is used as a sump pump or trans- § 250.868 Non-metallic piping.
fer pump, has a discharge rating of less
than 1⁄2 gallon per minute (gpm), dis- On fixed OCS facilities, you may use
charges into piping that is 1 inch or non-metallic piping (such as that made
less in diameter, and terminates in pip- from polyvinyl chloride, chlorinated
ing that is 2 inches or larger in diame- polyvinyl chloride, and reinforced fi-
ter. berglass) only in accordance with the
(f) You must install a TSE in the im- requirements of § 250.841(b).
mediate vicinity of all pumps in hydro-
carbon service or those powered by § 250.869 General platform operations.
platform fuel gas. (a) Surface or subsurface safety de-
(g) The pump maximum discharge vices must not be bypassed or blocked
pressure must be determined using the out of service unless they are tempo-
maximum possible suction pressure rarily out of service for startup, main-
and the maximum power output of the tenance, or testing. You may take only
driver as appropriate for the pump type the minimum number of safety devices
and service. out of service. Personnel must monitor
the bypassed or blocked-out functions
§ 250.866 Personnel safety equipment.
until the safety devices are placed back
You must maintain all personnel in service. Any surface or subsurface
safety equipment located on a facility, safety device which is temporarily out
whether required or not, in good work- of service must be flagged. A des-
ing condition. ignated visual indicator must be used
§ 250.867 Temporary quarters and tem- to identify the bypassed safety device.
porary equipment. You must follow the monitoring proce-
dures as follows:
(a) The District Manager must ap-
prove all temporary quarters to be in- (1) If you are using a non-computer-
stalled in production processing areas based system, meaning your safety sys-
or other classified areas on OCS facili- tem operates primarily with pneumatic
ties. You must equip such temporary supply or non-programmable electrical
quarters with all safety devices re- systems, you must monitor bypassed
quired by API RP 14C, Appendix C (in- safety devices by positioning moni-
corporated by reference as specified in toring personnel at either the control
§ 250.198). panel for the bypassed safety device, or

(b) The District Manager may require at the bypassed safety device, or at the
you to install a temporary firewater
175
§ 250.869 30 CFR Ch. II (7–1–18 Edition)
component that the bypassed safety de- normal conditions or undesirable

vice would be monitoring when in serv- events. You do not have to receive ap-
ice. You must also ensure that moni- proval from the District Manager for
toring personnel are able to view all manual reset and/or initial charging of
relevant essential operating conditions the system;
until all bypassed safety devices are (ii) The fire loop system to sense the
placed back in service and are able to heat of a fire and initiate platform
initiate shut-in action in the event of shutdown, and other fire detection de-
an abnormal condition. vices (flame, thermal, and smoke) that
(2) If you are using a computer-based are used to enhance fire detection ca-
technology system, meaning a com- pability. You do not have to receive ap-
puter-controlled electronic safety sys- proval from the District Manager for
tem such as supervisory control and manual reset and/or initial charging of
data acquisition and remote terminal the system;
units, you must monitor bypassed safe- (iii) The combustible gas detection
ty devices by maintaining instanta- system to sense the presence of hydro-
neous communications at all times carbons and initiate alarms and plat-
among remote monitoring personnel form shutdown before gas concentra-
and the personnel performing mainte- tions reach the lower explosive limit;
nance, testing, or startup. Until all by- (iv) Adequate ventilation;
passed safety devices are placed back (v) The containment system to col-
in service, you must also position mon- lect escaped liquid hydrocarbons and
itoring personnel at a designated con- initiate platform shutdown;
trol station that is capable of the fol- (vi) Subsurface safety valves, includ-
lowing: ing those that are self-actuated (sub-
(i) Displaying all relevant essential surface-controlled SSSVs) or those
operating conditions that affect the by- that are activated by an ESD system
passed safety device, well, pipeline, and and/or a fire loop (surface-controlled
process component. If electronic dis- SSSV). You do not have to receive ap-
play of all relevant essential condi- proval from the District Manager for
tions is not possible, you must have routine operations in accordance with
field personnel monitoring the level § 250.817;
gauges (sight glass) and pressure
(vii) The pneumatic supply system;
gauges in order to know the current
and
operating conditions. You must be in
communication with all field personnel (viii) The system for discharging gas
monitoring the gauges; to the atmosphere.
(ii) Controlling the production proc- (4) In instances where components of
ess equipment and the entire safety the ESD, as listed in paragraph (a)(3) of
system; this section, are bypassed for mainte-
(iii) Displaying a visual indicator nance, precautions must be taken to
when safety devices are placed in the provide the equivalent level of protec-
bypassed mode; and tion that existed prior to the bypass.
(iv) Upon command, overriding the (b) When wells are disconnected from
bypassed safety device and initiating producing facilities and blind flanged,
shut-in action in the event of an abnor- or equipped with a tubing plug, or the
mal condition. master valves have been locked closed,
(3) You must not bypass for startup you are not required to comply with
any element of the emergency support the provisions of API RP 14C (incor-
system or other support system re- porated by reference as specified in
quired by API RP 14C, Appendix C (in- § 250.198) or this regulation concerning
corporated by reference as specified in the following:
§ 250.198) without first receiving BSEE (1) Automatic fail-close SSVs on
approval to depart from this operating wellhead assemblies, and
procedure. These systems include, but (2) The PSH and PSL sensors in
are not limited to: flowlines from wells.
(i) The ESD system to provide a (c) When pressure or atmospheric

method to manually initiate platform vessels are isolated from production fa-
shutdown by personnel observing ab- cilities (e.g., inlet valve locked closed
176
or inlet blind-flanged) and are to re- corporate a combination of Class B and

main isolated for an extended period of Class C circuitry. These devices are
time, safety device testing in accord- used to ensure that the PSL sensors
ance with API RP 14C (incorporated by are not unnecessarily bypassed during
reference as specified in § 250.198), or startup and idle operations, (e.g., Class
this subpart is not required, with the B/C bypass circuitry activates when a
exception of the PSV, unless the vessel pump is shut down during normal oper-
is open to the atmosphere. ations). The PSL sensor remains by-
(d) All open-ended lines connected to passed until the pump’s start circuitry
producing facilities and wells must be is activated and either:
plugged or blind-flanged, except those
(i) The Class B timer expires no later
lines designed to be open-ended such as
than 45 seconds from start activation,
flare or vent lines.
(e) On all new production safety sys- or
tem installations, component process (ii) The Class C bypass is initiated
control devices and component safety until the pump builds up pressure
devices must not be installed utilizing above the PSL sensor set point and the
the same sensing points. PSL sensor comes into full service.
(f) All pneumatic control panels and (b) If you do not install time delay
computer based control stations must circuitry that bypasses activation of
be labeled according to API RP 14C no- PSL sensor shutdown logic for a speci-
menclature. fied time period on process and product
transport equipment during startup
§ 250.870 Time delays on pressure safe- and idle operations, you must manu-
ty low (PSL) sensors.
ally bypass (pin out or disengage) the
(a) You may apply any or all of the PSL sensor, with a time delay not to
industry standard Class B, Class C, or exceed 45 seconds.
Class B/C logic to all applicable PSL
sensors installed on process equipment, § 250.871 Welding and burning prac-
as long as the time delay does not ex- tices and procedures.
ceed 45 seconds. Use of a PSL sensor
All welding, burning, and hot-tapping
with a time delay greater than 45 sec-
activities must be conducted according
onds requires BSEE approval in accord-
ance with § 250.141. You must document to the specific requirements in § 250.113.
on your field test records any use of a § 250.872 Atmospheric vessels.
PSL sensor with a time delay greater
than 45 seconds. For purposes of this (a) You must equip atmospheric ves-
section, PSL sensors are categorized as sels used to process and/or store liquid
follows: hydrocarbons or other Class I liquids as
(1) Class B safety devices have logic described in API RP 500 or 505 (both in-
that allows for the PSL sensors to be corporated by reference as specified in
bypassed for a fixed time period (typi- § 250.198) with protective equipment
cally less than 15 seconds, but not more identified in API RP 14C, section A.5
than 45 seconds). Examples include sen- (incorporated by reference as specified
sors used in conjunction with the de- in § 250.198). Transport tanks approved
sign of pump and compressor panels by the U.S. Department of Transpor-
such as PSL sensors, lubricator no- tation, that are sealed and not con-
flows, and high-water jacket tempera- nected via interconnected piping to the
ture shutdowns. production process train and that are
(2) Class C safety devices have logic used only for storage of refined liquid
that allows for the PSL sensors to be
hydrocarbons or Class I liquids, are not
bypassed until the component comes
required to be equipped with the pro-
into full service (i.e., the time at which
tective equipment identified in API RP
the startup pressure equals or exceeds
the set pressure of the PSL sensor, the 14C, section A.5.
system reaches a stabilized pressure, (b) You must ensure that all atmos-
and the PSL sensor clears). pheric vessels are designed and main-
(3) Class B/C safety devices have logic tained to ensure the proper working
that allows for the PSL sensors to in- conditions for LSH sensors. The LSH
177
§ 250.873 30 CFR Ch. II (7–1–18 Edition)
sensor bridle must be designed to pre- § 250.873 Subsea gas lift requirements.
vent different density fluids from im- If you choose to install a subsea gas
pacting sensor functionality. For at- lift system, you must design your sys-
mospheric vessels that have oil buck- tem as approved in your DWOP or as
ets, the LSH sensor must be installed follows:
to sense the level in the oil bucket. (a) Design the gas lift supply pipeline
(c) You must ensure that all flame in accordance with API RP 14C (incor-
arrestors are maintained to ensure porated by reference as specified in
proper design function (installation of § 250.198) for the gas lift supply system
a system to allow for ease of inspection located on the platform.
should be considered). (b) Meet the applicable requirements
in the following table:
178
VerDate Sep<11>2014
Then you must install a
If your subsea gas
lift system API Spec 6A and API Spec 6AV1
10:34 Sep 13, 2018

API Spec 6A and
introduces the (both incorporated by FSV on the In addition, you must
PSHL on the gas- API Spec 6AV1
lift gas to reference as specified in § 250.198) gas-lift supply lift supply . . . manual isolation
the . . . gas-lift shutdown valve (GLSDV), pipeline . . . valve . . .
and . . .
Jkt 244126
(1) Subsea pipe- Meet all of the requirements for the on the platform pipeline on the downstream (out (i) Ensure that the MAOP of a
lines, pipeline ris- BSDV described in §§ 250.835 upstream (in- platform down- board) of the subsea gas lift supply pipeline is
ers, or manifolds and 250.836 on the gas-lift supply board) of the stream (out PSHL and equal to the MAOP of the produc-
via an external pipeline. Locate the GLSDV within GLSDV. board) of the above the wa- tion pipeline.
PO 00000
gas lift pipeline or 10 feet of the first point of access GLSDV. terline. This (ii) Install an actuated fail-safe close
umbilical. to the gas-lift riser or topsides um- valve does not gas-lift isolation valve (GLIV) lo-
bilical termination assembly have to be actu- cated at the point of intersection
(TUTA) (i.e., within 10 feet of the ated. between the gas lift supply pipe-
edge of the platform if the GLSDV line and the production pipeline,
Frm 00189
is horizontal, or within 10 feet pipeline riser, or manifold.
above the first accessible working (iii) Install the GLIV downstream of
deck, excluding the boat landing the underwater safety valve(s)
and above the splash zone, if the (USV) and/or AIV(s).
GLSDV is in the vertical run of a
Fmt 8010
riser, or within 10 feet of the TUTA
179
if using an umbilical).
Safety & Environmental Enforcement, Interior
(2) Subsea well(s) Meet all of the requirements for the on the platform pipeline on the downstream (out (i) Install an actuated, fail-safe-
through the cas- GLSDV described in §§ 250.835 upstream (in- platform down- board) of the closed GLIV on the gas lift supply
Sfmt 8010
ing string via an and 250.836 on the gas-lift supply board) of the stream (out PSHL and pipeline near the wellhead to pro-
external gas lift pipeline. Locate the GLSDV within GLSDV. board) of the above the wa- vide the dual function of con-
pipeline or umbil- 10 feet of the first point of access GLSDV. terline. This taining annular pressure and shut-
ical. to the gas-lift riser or topsides um- valve does not ting off the gas lift supply gas.
bilical termination assembly have to be actu- (ii) If your subsea tree or tubing
(TUTA) (i.e., within 10 feet of the ated.. head is equipped with an annulus
edge of the platform if the GLSDV master valve (AMV) or an annulus
is horizontal, or within 10 feet wing valve (AWV), one of these
above the first accessible working may be designated as the GLIV.
Y:\SGML\244126.XXX
deck, excluding the boat landing (iii) Consider installing the GLIV ex-
and above the splash zone, if the ternal to the subsea tree to facili-
GLSDV is in the vertical run of a tate repair and or replacement if
riser, or within 10 feet of the TUTA necessary.
244126
if using an umbilical).
§ 250.873
VerDate Sep<11>2014
Then you must install a
If your subsea gas
lift system API Spec 6A and API Spec 6AV1
10:34 Sep 13, 2018

API Spec 6A and
introduces the (both incorporated by FSV on the In addition, you must
PSHL on the gas- API Spec 6AV1
lift gas to reference as specified in § 250.198) gas-lift supply § 250.873
lift supply . . . manual isolation
the . . . gas-lift shutdown valve (GLSDV), pipeline . . . valve . . .
and . . .
Jkt 244126
(3) Pipeline risers Meet all of the requirements for the upstream (in- flowline upstream downstream (out (i) Ensure that the gas-lift supply
via a gas-lift line GLSDV described in board) of the (in-board) of the board) of the flowline from the gas-lift com-
contained within §§ 250.835(a), (b), and (d) and GLSDV. FSV. GLSDV. pressor to the GLSDV is pressure-
the pipeline riser. 250.836 on the gas-lift supply rated for the MAOP of the pipeline
PO 00000
pipeline. Attach the GLSDV by riser.
flanged connection directly to the (ii) Ensure that any surface equip-
API Spec. 6A component used to ment associated with the gas-lift
suspend and seal the gas-lift line system is rated for the MAOP of
contained within the production the pipeline riser.
Frm 00190
riser. To facilitate the repair or re- (iii) Ensure that the gas-lift com-
placement of the GLSDV or pro- pressor discharge pressure never
duction riser BSDV, you may in- exceeds the MAOP of the pipeline
stall a manual isolation valve be- riser.
tween the GLSDV and the API (iv) Suspend and seal the gas-lift
Fmt 8010
Spec. 6A component used to sus- flowline contained within the pro-
180
pend and seal the gas-lift line con- duction riser in a flanged API
tained within the production riser, Spec. 6A component such as an
or outboard of the production riser API Spec. 6A tubing head and
Sfmt 8010
BSDV and inboard of the API tubing hanger or a component de-
Spec. 6A component used to sus- signed, constructed, tested, and
pend and seal the gas-lift line con- installed to the requirements of
tained within the production riser. API Spec. 6A.
(v) Ensure that all potential leak
paths upstream or near the pro-
duction riser BSDV on the plat-
form provide the same level of
safety and environmental protec-
Y:\SGML\244126.XXX
tion as the production riser BSDV.
(vi) Ensure that this complete as-
sembly is fire-rated for 30 minutes.
244126
(c) Follow the valve closure times (2) Electro-hydraulic control system
and hydraulic bleed requirements ac- with gas lift with loss of communica-
cording to your approved DWOP for the tions,
following: (3) Direct-hydraulic control system
(1) Electro-hydraulic control system with gas lift.
with gas lift, (d) Follow the gas lift system valve
testing requirements according to the
following table:
181
VerDate Sep<11>2014
Type of gas lift system Valve Allowable leakage rate Testing frequency
(1) Gas lifting a subsea pipeline, pipeline riser, or mani- GLSDV Zero leakage ..................................................................... Monthly, not to exceed 6 weeks.
10:34 Sep 13, 2018

fold via an external gas lift pipeline.
GLIV N/A .................................................................................... Function tested quarterly, not to exceed 120 days. § 250.873
(2) Gas lifting a subsea well through the casing string via GLSDV Zero leakage ..................................................................... Monthly, not to exceed 6 weeks.
an external gas lift pipeline.
GLIV 400 cc per minute of liquid or 15 scf per minute of gas. Function tested quarterly, not to exceed 120 days
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(3) Gas lifting the pipeline riser via a gas lift line con- GLSDV Zero leakage ..................................................................... Monthly, not to exceed 6 weeks.
tained within the pipeline riser.
PO 00000
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182
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244126
§ 250.874 Subsea water injection sys- (d) Use subsea tree(s), wellhead(s),
tems. connector(s), and tree valves, and sur-
face-controlled SSSV or WIV associ-
If you choose to install a subsea
ated with a water injection system
water injection system, your system
that are rated for the maximum antici-
must comply with your approved
pated injection pressure.
DWOP, which must meet the following
(e) Consider the effects of hydrogen
minimum requirements:
sulfide (H2S) when designing your
(a) Adhere to the water injection re- water flood system, as required by
quirements described in API RP 14C § 250.805.
(incorporated by reference as specified (f) Follow the valve closure times and
in § 250.198) for the water injection hydraulic bleed requirements accord-
equipment located on the platform. In ing to your approved DWOP for the fol-
accordance with § 250.830, either a sur- lowing:
face-controlled SSSV or a water injec- (1) Electro-hydraulic control system
tion valve (WIV) that is self-activated with water injection,
and not controlled by emergency shut- (2) Electro-hydraulic control system
down (ESD) or sensor activation must with water injection with loss of com-
be installed in a subsea water injection munications, and
well. (3) Direct-hydraulic control system
(b) Equip a water injection pipeline with water injection.
with a surface FSV and water injection (g) Comply with the following injec-
shutdown valve (WISDV) on the surface tion valve testing requirements:
facility. (1) You must test your injection
(c) Install a PSHL sensor upstream valves as provided in the following
(in-board) of the FSV and WISDV. table:
Valve Allowable leakage rate Testing frequency
(i) WISDV ................................................. Zero leakage ............................................ Monthly, not to exceed 6 weeks between
tests.
(ii) Surface-controlled SSSV or WIV ........ 400 cc per minute of liquid or .................. Semiannually, not to exceed
15 scf per minute of gas .......................... 6 calendar months between tests.
(2) If a designated USV on a water in- (2) Obtain approval from the appro-
jection well fails the applicable test priate District Manager to continue to
under § 250.880(c)(4)(ii), you must notify inject during the loss of communica-
the appropriate District Manager and tion.
request approval to designate another
API Spec 6A and API Spec. 6AV1 (both § 250.875 Subsea pump systems.
incorporated by reference as specified If you choose to install a subsea
in § 250.198) certified subsea valve as pump system, your system must com-
your USV. ply with your approved DWOP, which
(3) If a USV on a water injection well must meet the following minimum re-
fails the test and the surface-controlled quirements:
SSSV or WIV cannot be tested as re- (a) Include the installation of an iso-
quired under (g)(1)(ii) of this section lation valve at the inlet of your subsea
because of low reservoir pressure, you pump module.
must submit a request to the appro- (b) Include a PSHL sensor upstream
priate District Manager with an alter- of the BSDV, if the maximum possible
native plan that ensures subsea shut- discharge pressure of the subsea pump
down capabilities. operating in a dead head condition
(h) If you experience a loss of com- (that is the maximum shut-in tubing
munications during water injection op- pressure at the pump inlet and a closed
erations, you must comply with the BSDV) is less than the MAOP of the as-
following: sociated pipeline.
(1) Notify the appropriate District (c) If the maximum possible dis-
Manager within 12 hours after detect- charge pressure of the subsea pump op-
ing loss of communication; and erating in a dead head situation could
183
§ 250.876 30 CFR Ch. II (7–1–18 Edition)
be greater than the MAOP of the pipe- (1) Electro-hydraulic control system
line: with a subsea pump;
(1) Include, at minimum, 2 inde- (2) A loss of communication with the
pendent functioning PSHL sensors up- subsea well(s) and not a loss of commu-
stream of the subsea pump and 2 inde- nication with the subsea pump control
pendent functioning PSHL sensors system without an ESD or sensor acti-
downstream of the pump, that: vation;
(i) Are operational when the subsea (3) A loss of communication with the
pump is in service; and subsea pump control system, and not a
(ii) Will, when activated, shut down loss of communication with the subsea
the subsea pump, the subsea inlet iso- well(s);
lation valve, and either the designated (4) A loss of communication with the
USV1, the USV2, or the alternate isola- subsea well(s) and the subsea pump
tion valve. control system.
(iii) If more than 2 PSHL sensors are (e) For subsea pump testing:
installed both upstream and down- (1) Perform a complete subsea pump
stream of the subsea pump for oper- function test, including full shutdown,
ational flexibility, then 2 out of 3 vot- after any intervention or changes to
ing logic may be implemented in which the software and equipment affecting
the subsea pump remains operational the subsea pump; and
provided a minimum of 2 independent (2) Test the subsea pump shutdown,
PSHL sensors are functional both up- including PSHL sensors both upstream
stream and downstream of the pump. and downstream of the pump, each
(2) Interlock the subsea pump motor quarter (not to exceed 120 days between
with the BSDV to ensure that the tests). This testing may be performed
pump cannot start or operate when the concurrently with the ESD function
BSDV is closed, incorporate at a min- test required by § 250.880(c)(4)(v).
imum the following permissive signals
into the control system for your subsea § 250.876 Fired and exhaust heated
pump, and ensure that the subsea pump components.
is not able to be started or re-started No later than September 7, 2018, and
unless: at least once every 5 years thereafter,
(i) The BSDV is open; you must have a qualified third-party
(ii) All automated valves downstream remove and inspect, and then you must
of the subsea pump are open; repair or replace, as needed, the fire
(iii) The upstream subsea pump isola- tube for tube-type heaters that are
tion valve is open; and equipped with either automatically
(iv) All parameters associated with controlled natural or forced draft burn-
the subsea pump operation (e.g., pump ers installed in either atmospheric or
temperature high, pump vibration pressure vessels that heat hydro-
high, pump suction pressure high, carbons and/or glycol. If removal and
pump discharge pressure high, pump inspection indicates tube-type heater
suction flow low) must be cleared (i.e., deficiencies, you must complete and
within operational limits) or continu- document repairs or replacements. You
ously monitored by personnel who ob- must document the inspection results,
serve visual indicators displayed at a retain such documentation for at least
designated control station and have 5 years, and make the documentation
the capability to initiate shut-in ac- available to BSEE upon request.
tion in the event of an abnormal condi-
tion. §§ 250.877—250.879 [Reserved]
(3) Monitor the separator for sea-
water. SAFETY DEVICE TESTING
(4) Ensure that the subsea pump sys-
tems are controlled by an electro-hy- § 250.880 Production safety system
draulic control system. testing.
(d) Follow the valve closure times (a) Notification. You must:
and hydraulic bleed requirements ac- (1) Notify the District Manager at
cording to your approved DWOP for the least 72 hours before commencing pro-
following: duction, so that BSEE may conduct a
184
preproduction inspection of the inte- (1) Test safety valves and other
grated safety system. equipment at the intervals specified in
(2) Notify the District Manager upon the tables set forth in paragraph (c) of
commencement of production so that this section or more frequently if oper-
BSEE may conduct a complete inspec- ating conditions warrant; and
tion. (2) Perform testing and inspections in
(3) Notify the District Manager and accordance with API RP 14C, Appendix
receive BSEE approval before you per- D (incorporated by reference as speci-
fied in § 250.198), and the additional re-
form any subsea intervention that
quirements specified in the tables of
modifies the existing subsea infrastruc-
this section or as approved in the
ture in a way that may affect the cas-
DWOP for your subsea system.
ing monitoring capabilities and testing (c) Testing frequencies. You must:
frequencies specified in the table set (1) Comply with the following testing
forth in paragraph (c)(4) of this section. requirements for subsurface safety de-
(b) Testing methodologies. You must: vices on dry tree wells:
185
VerDate Sep<11>2014
Item name Testing frequency, allowable leakage rates, and other requirements
(i) Surface-controlled SSSVs (including devices installed in shut- Semi-annually, not to exceed 6 calendar months between tests. Also test in place when first installed or reinstalled. If the
10:34 Sep 13, 2018

in and injection wells. device does not operate properly, or if a liquid leakage rate > 400 cubic centimeters per minute or a gas leakage rate
> 15 standard cubic feet per minute is observed, the device must be removed, repaired, and reinstalled or replaced. § 250.880
Testing must be according to API RP 14B (incorporated by reference as specified in § 250.198) to ensure proper oper-
ation.
(ii) Subsurface-controlled SSSVs .................................................... Semi-annually, not to exceed 6 calendar months between tests for valves not installed in a landing nipple and 12 months
Jkt 244126
for valves installed in a landing nipple. The valve must be removed, inspected, and repaired or adjusted, as nec-
essary, and reinstalled or replaced.
(iii) Tubing plug ................................................................................ Semi-annually, not to exceed 6 calendar months between tests. Test by opening the well to possible flow. If a liquid
leakage rate > 400 cubic centimeters per minute or a gas leakage rate > 15 standard cubic feet per minute is ob-
served, the plug must be removed, repaired, and reinstalled or replaced. An additional tubing plug may be installed in
PO 00000
lieu of removal.
(iv) Injection valves .......................................................................... Semi-annually, not to exceed 6 calendar months between tests. Test by opening the well to possible flow. If a liquid
leakage rate > 400 cubic centimeters per minute or a gas leakage rate > 15 standard cubic feet per minute is ob-
served, the valve must be removed, repaired and reinstalled or replaced.
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186
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(2) Comply with the following testing

requirements for surface valves:
187
VerDate Sep<11>2014
Item name Testing frequency and requirements
(i) PSVs ........................................................................................... Annually, not to exceed 12 calendar months between tests. Valve must either be bench-tested or equipped to permit
10:34 Sep 13, 2018

testing with an external pressure source. Weighted disc vent valves used as PSVs on atmospheric tanks may be dis-
assembled and inspected in lieu of function testing. The main valve piston must be lifted during this test. § 250.880
(ii) Automatic inlet SDVs that are actuated by a sensor on a ves- Once each calendar month, not to exceed 6 weeks between tests.
sel or compressor.
(iii) SDVs in liquid discharge lines and actuated by vessel low- Once each calendar month, not to exceed 6 weeks between tests.
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level sensors.
(iv) SSVs ......................................................................................... Once each calendar month, not to exceed 6 weeks between tests. Valves must be tested for both operation and leak-
age. You must test according to API RP 14H (incorporated by reference as specified in § 250.198). If an SSV does not
operate properly or if any gas and/or liquid fluid flow is observed during the leakage test, the valve must be imme-
diately repaired or replaced.
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(v) Flowline FSVs ............................................................................ Once each calendar month, not to exceed 6 weeks between tests. All flowline FSVs must be tested, including those in-
stalled on a host facility in lieu of being installed at a satellite well. You must test flowline FSVs for leakage in accord-
ance with the test procedure specified in API RP 14C (incorporated by reference as specified in § 250.198). If leakage
measured exceeds a liquid flow of 400 cubic centimeters per minute or a gas flow of 15 standard cubic feet per
minute, the FSV must be repaired or replaced.
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188
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(3) Comply with the following testing

requirements for surface safety sys-
tems and devices:
189
VerDate Sep<11>2014
Item name Testing frequency and requirements
(i) Pumps for firewater systems ...................................................... Must be inspected and operated according to API RP 14G, Section 7.2 (incorporated by reference as specified in
10:34 Sep 13, 2018

§ 250.198).
(ii) Fire- (flame, heat, or smoke) and gas detection systems ......... Must be tested for operation and recalibrated every 3 months, not to exceed 120 days between tests, provided that test- § 250.880
ing can be performed in a non-destructive manner. Open flame or devices operating at temperatures that could ignite
a methane-air mixture must not be used. All combustible gas-detection systems must be calibrated every 3 months.
(iii) ESD systems ............................................................................. (A) Pneumatic based ESD systems must be tested for operation at least once each calendar month, not to exceed 6
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weeks between tests. You must conduct the test by alternating ESD stations monthly to close at least one wellhead
SSV and verify a surface-controlled SSSV closure for that well as indicated by control circuitry actuation. All stations
must be checked for functionality at least once each calendar month, not to exceed 6 weeks between tests. No station
may be reused until all stations have been tested.
(B) Electronic based ESD systems must be tested for operation at least once every 3 calendar months, not to exceed
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120 days between tests. The test must be conducted by alternating ESD stations to close at least one wellhead SSV
and verify a surface-controlled SSSV closure for that well as indicated by control circuitry actuation. All stations must
be checked for functionality at least once every 3 calendar months, not to exceed 120 days between checks. No sta-
tion may be reused until all stations have been tested.
(C) Electronic/pneumatic based ESD systems must be tested for operation at least once every 3 calendar months, not to
exceed 120 days between tests. The test must be conducted by alternating ESD stations to close at least one well-
Frm 00200
head SSV and verify a surface-controlled SSSV closure for that well as indicated by control circuitry actuation. All sta-
tions must be checked for functionality at least once every 3 calendar months, not to exceed 120 days between
checks. No station may be reused until all stations have been used.
(iv) TSH devices .............................................................................. Must be tested for operation annually, not to exceed 12 calendar months between tests, excluding those addressed in
paragraph (c)(3)(v) of this section and those that would be destroyed by testing. Those that could be destroyed by
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testing must be visually inspected and the circuit tested for operations at least once every 12 months.
190
(v) TSH shutdown controls installed on compressor installations Must be tested every 6 months and repaired or replaced as necessary.
that can be nondestructively tested.
(vi) Burner safety low ...................................................................... Must be tested annually, not to exceed 12 calendar months between tests.
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(vii) Flow safety low devices ........................................................... Must be tested annually, not to exceed 12 calendar months between tests.
(viii) Flame, spark, and detonation arrestors .................................. Must be visually inspected annually, not to exceed 12 calendar months between inspections.
(ix) Electronic pressure transmitters and level sensors: PSH and Must be tested at least once every 3 months, not to exceed 120 days between tests.
PSL; LSH and LSL.
(x) Pneumatic/electronic switch PSH and PSL; pneumatic/elec- Must be tested at least once each calendar month, not to exceed 6 weeks between tests.
tronic switch/electric analog with mechanical linkage LSH and
LSL controls.
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244126
(4) Comply with the following testing vices and associated systems on subsea
requirements for subsurface safety de- tree wells:
191
VerDate Sep<11>2014
Item name Testing frequency, allowable leakage rates, and other requirements
(i) Surface-controlled SSSVs (including devices installed in shut- Tested semiannually, not to exceed 6 months between tests. If the device does not operate properly, or if a liquid leak-
10:34 Sep 13, 2018

in and injection wells). age rate > 400 cubic centimeters per minute or a gas leakage rate > 15 standard cubic feet per minute is observed,
the device must be removed, repaired, and reinstalled or replaced. Testing must be according to API RP 14B (incor- § 250.880
porated by reference as specified in § 250.198) to ensure proper operation, or as approved in your DWOP.
(ii) USVs .......................................................................................... Tested at least once every 3 calendar months, not to exceed 120 days between tests. If the device does not function
properly, or if a liquid leakage rate > 400 cubic centimeters per minute or a gas leakage rate > 15 standard cubic feet
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per minute is observed, the valve must be removed, repaired, and reinstalled or replaced.
(iii) BSDVs ....................................................................................... Tested at least once each calendar month, not to exceed 6 weeks between tests. Valves must be tested for both oper-
ation and leakage. You must test according to API RP 14H for SSVs (incorporated by reference as specified in
§ 250.198). If a BSDV does not operate properly or if any fluid flow is observed during the leakage test, the valve must
be immediately repaired or replaced.
PO 00000
(iv) Electronic ESD logic ................................................................. Tested at least once each calendar month, not to exceed 6 weeks between tests.
(v) Electronic ESD function ............................................................. Tested at least once every 3 calendar months, not to exceed 120 days between tests. Shut-in at least one well during
the ESD function test. If multiple wells are tied back to the same platform, a different well should be shut-in with each
quarterly test.
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192
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Y:\SGML\244126.XXX
244126
(d) Subsea wells. (1) Any subsea well pairing, adjustments, and reinstalla-
that is completed and disconnected tion.
from monitoring capability may not be (b) You must maintain these records
disconnected for more than 24 months, for at least 2 years. You must maintain
unless authorized by BSEE. the records at your field office nearest
(2) Any subsea well that is completed the OCS facility and a secure onshore
and disconnected from monitoring ca- location. These records must be avail-
pability for more than 6 months must able for review by a representative of
meet the following testing and other BSEE.
requirements: (c) You must submit to the appro-
(i) Each well must have 3 pressure priate District Manager a contact list
barriers: for all OCS facilities at least annually
(A) A closed and tested surface-con- or when contact information is revised.
trolled SSSV, The contact list must include:
(B) A closed and tested USV, and (1) Designated operator name;
(C) One additional closed and tested (2) Designated primary point of con-
tree valve. tact for the facility;
(ii) For new completed wells, prior to (3) Facility phone number(s), if appli-
the rig leaving the well, the pressure cable;
barriers must be tested as follows: (4) Facility fax number, if applicable;
(A) The surface-controlled SSSV (5) Facility radio frequency, if appli-
must be tested for leakage in accord- cable;
ance with § 250.828(c); (6) Facility helideck rating and size,
(B) The USV and other pressure bar- if applicable; and
rier must be tested to confirm zero (7) Facility records location if not
leakage rate. contained on the facility.
(iii) A sealing pressure cap must be
installed on the flowline connection § 250.891 Safety device training.
hub until the flowline is installed and
You must ensure that personnel in-
connected. The pressure cap must be
stalling, repairing, testing, maintain-
designed to accommodate monitoring
ing, and operating surface and sub-
for pressure between the production
wing valve and cap. The pressure cap surface safety devices, and personnel
must also be designed so that a re- operating production platforms (in-
motely operated vehicle can bleed pres- cluding, but not limited to, separation,
sure off, monitor for buildup, and con- dehydration, compression, sweetening,
firm barrier integrity. and metering operations), are trained
(iv) Pressure monitoring at the seal- in accordance with the procedures in
ing pressure cap on the flowline con- subpart O and subpart S of this part.
nection hub must be performed in each §§ 250.892–250.899 [Reserved]
well at intervals not to exceed 12
months from the time of initial testing
of the pressure barrier (prior to de- Subpart I—Platforms and
mobilizing the rig from the field). Structures
(v) You must have a drilling vessel
capable of intervention into the discon- GENERAL REQUIREMENTS FOR
nected well in the field or readily ac- PLATFORMS
cessible for use until the wells are § 250.900 What general requirements
brought on line. apply to all platforms?
§§ 250.881—250.889 [Reserved] (a) You must design, fabricate, in-
stall, use, maintain, inspect, and assess
RECORDS AND TRAINING all platforms and related structures on
the Outer Continental Shelf (OCS) so
§ 250.890 Records. as to ensure their structural integrity
(a) You must maintain records that for the safe conduct of drilling,
show the present status and history of workover, and production operations.
each safety device. Your records must In doing this, you must consider the
include dates and details of installa- specific environmental conditions at
tion, removal, inspection, testing, re- the platform location.
193
§ 250.900 30 CFR Ch. II (7–1–18 Edition)
(b) You must also submit an applica- pervisor before performing any of the
tion under § 250.905 of this subpart and activities described in the following
obtain the approval of the Regional Su- table:
Activity requiring application and approval Conditions for conducting the activity
(1) Install a platform. This includes placing a newly constructed (i) You must adhere to the requirements of this subpart, includ-
platform at a location or moving an existing platform to a ing the industry standards in § 250.901.
new site. (ii) If you are installing a floating platform, you must also ad-
here to U.S. Coast Guard (USCG) regulations for the fab-
rication, installation, and inspection of floating OCS facilities.
(2) Major modification to any platform. This includes any struc- (i) You must adhere to the requirements of this subpart, includ-
tural changes that materially alter the approved plan or ing the industry standards in § 250.901.
cause a major deviation from approved operations and any (ii) Before you make a major modification to a floating platform,
modification that increases loading on a platform by 10 per- you must obtain approval from both the BSEE and the
cent or more. USCG for the modification.
(3) Major repair of damage to any platform. This includes any (i) You must adhere to the requirements of this subpart, includ-
corrective operations involving structural members affecting ing the industry standards in § 250.901.
the structural integrity of a portion or all of the platform. (ii) Before you make a major repair to a floating platform, you
must obtain approval from both the BSEE and the USCG for
the repair.
(4) Convert an existing platform at the current location for a (i) The Regional Supervisor will determine on a case-by-case
new purpose. basis the requirements for an application for conversion of
an existing platform at the current location.
(ii) At a minimum, your application must include: the converted
platform’s intended use; and a demonstration of the ade-
quacy of the design and structural condition of the converted
platform.
(iii) If a floating platform, you must also adhere to USCG regu-
lations for the fabrication, installation, and inspection of float-
ing OCS facilities.
(5) Convert an existing mobile offshore drilling unit (MODU) for (i) The Regional Supervisor will determine on a case-by-case
a new purpose. basis the requirements for an application for conversion of
an existing MODU.
(ii) At a minimum, your application must include: the converted
MODU’s intended location and use; a demonstration of the
adequacy of the design and structural condition of the con-
verted MODU; and a demonstration that the level of safety
for the converted MODU is at least equal to that of re-used
platforms.
(iii) You must also adhere to USCG regulations for the fabrica-
tion, installation, and inspection of floating OCS facilities.
(c) Under emergency conditions, you platform is subject to the PVP, you
may make repairs to primary struc- must follow the requirements of
tural elements to restore an existing §§ 250.909 through 250.918 of this sub-
permitted condition without submit- part.
ting an application or receiving prior (e) You must submit notification of
BSEE approval for up to 120-calendar the platform installation date and the
days following an event. You must no- final as-built location data to the Re-
tify the Regional Supervisor of the gional Supervisor within 45-calendar
damage that occurred within 24 hours days of completion of platform instal-
of its discovery, and you must provide lation.
a written completion report to the Re- (1) For platforms not subject to the
gional Supervisor of the repairs that Platform Verification Program (PVP),
were made within 1 week after com- BSEE will cancel the approved plat-
pleting the repairs. If you make emer- form application 1 year after the ap-
gency repairs on a floating platform, proval has been granted if the platform
you must also notify the USCG. has not been installed. If BSEE cancels
(d) You must determine if your new the approval, you must resubmit your
platform or major modification to an platform application and receive BSEE
existing platform is subject to the approval if you still plan to install the
Platform Verification Program (PVP). platform.
Section 250.910 of this subpart fully de- (2) For platforms subject to the PVP,
scribes the facilities that are subject to cancellation of an approval will be on
the PVP. If you determine that your an individual platform basis. For these
194
platforms, BSEE will identify the date (10) API RP 2RD, Design of Risers for
when the installation approval will be Floating Production Systems (FPSs)
cancelled (if installation has not oc- and Tension-Leg Platforms (TLPs), (as
curred) during the application and ap- incorporated by reference in § 250.198);
proval process. If BSEE cancels your (11) API RP 2SK, Recommended Prac-
installation approval, you must resub- tice for Design and Analysis of Station
mit your platform application and re- Keeping Systems for Floating Struc-
ceive BSEE approval if you still plan to tures, (as incorporated by reference in
install the platform. § 250.198);
(12) API RP 2SM, Recommended
§ 250.901 What industry standards Practice for Design, Manufacture, In-
must your platform meet?
stallation, and Maintenance of Syn-
(a) In addition to the other require- thetic Fiber Ropes for Offshore Moor-
ments of this subpart, your plans for ing, (as incorporated by reference in
platform design, analysis, fabrication, § 250.198);
installation, use, maintenance, inspec- (13) API RP 2T, Recommended Prac-
tion and assessment must, as appro- tice for Planning, Designing and Con-
priate, conform to: structing Tension Leg Platforms, (as
(1) ACI Standard 318–95, Building incorporated by reference in § 250.198);
Code Requirements for Reinforced Con- (14) API RP 14J, Recommended Prac-
crete (ACI 318–95) and Commentary tice for Design and Hazards Analysis
(ACI 318R–95) (incorporated by ref- for Offshore Production Facilities, (as
erence at § 250.198); incorporated by reference in § 250.198);
(2) ACI 357R–84, Guide for the Design (15) American Society for Testing
and Construction of Fixed Offshore and Materials (ASTM) Standard C 33–
Concrete Structures, 1984; reapproved 07, approved December 15, 2007, Stand-
1997 (incorporated by reference at ard Specification for Concrete Aggre-
§ 250.198); gates (as incorporated by reference in
(3) ANSI/AISC 360–05, Specification § 250.198);
for Structural Steel Buildings, (as
(16) ASTM Standard C 94/C 94M–07,
approved January 1, 2007, Standard
(4) American Petroleum Institute
Specification for Ready-Mixed Con-
(API) Bulletin 2INT–DG, Interim Guid-
crete (as incorporated by reference in
ance for Design of Offshore Structures
§ 250.198);
for Hurricane Conditions, (as incor-
porated by reference in § 250.198); (17) ASTM Standard C 150–07, ap-
(5) API Bulletin 2INT–EX, Interim proved May 1, 2007, Standard Specifica-
Guidance for Assessment of Existing tion for Portland Cement (as incor-
Offshore Structures for Hurricane Con- porated by reference in § 250.198);
ditions, (as incorporated by reference (18) ASTM Standard C 330–05, ap-
in § 250.198); proved December 15, 2005, Standard
(6) API Bulletin 2INT–MET, Interim Specification for Lightweight Aggre-
Guidance on Hurricane Conditions in gates for Structural Concrete (as incor-
the Gulf of Mexico, (as incorporated by porated by reference in § 250.198);
reference in § 250.198); (19) ASTM Standard C 595–08, ap-
(7) API Recommend Practice (RP) proved January 1, 2008, Standard Speci-
2A–WSD, RP for Planning, Designing, fication for Blended Hydraulic Cements
and Constructing Fixed Offshore Plat- (as incorporated by reference in
forms—Working Stress Design (as in- § 250.198);
corporated by reference in § 250.198); (20) AWS D1.1, Structural Welding
(8) API RP 2FPS, Recommended Code—Steel, including Commentary,
Practice for Planning, Designing, and (as incorporated by reference in
Constructing Floating Production Sys- § 250.198);
tems, (as incorporated by reference in (21) AWS D1.4, Structural Welding
§ 250.198); Code—Reinforcing Steel, (as incor-
(9) API RP 2I, In-Service Inspection porated by reference in § 250.198);
of Mooring Hardware for Floating (22) AWS D3.6M, Specification for Un-
Drilling Units (as incorporated by ref- derwater Welding, (as incorporated by
erence in § 250.198); reference in § 250.198);
195
§ 250.902 30 CFR Ch. II (7–1–18 Edition)
(23) NACE Standard MR0175, Sulfide pervisor, for the design, fabrication,
Stress Cracking Resistant Metallic Ma- and installation of platforms such as
terials for Oilfield Equipment, (as in- spars, since standards specifically writ-
corporated by reference in § 250.198); ten for such structures do not exist.
(24) NACE Standard RP0176–2003, You may also use alternative codes,
Item No. 21018, Standard Recommended rules, or standards, as approved by the
Practice, Corrosion Control of Steel Regional Supervisor, under the condi-
Fixed Offshore Structures Associated tions enumerated in § 250.141.
with Petroleum Production (as incor-
(c) For information on the standards
porated by reference in § 250.198).
mentioned in this section, and where
(b) You must follow the requirements
contained in the documents listed they may be obtained, see § 250.198 of
under paragraph (a) of this section in- this part.
sofar as they do not conflict with other (d) The following chart summarizes
provisions of 30 CFR part 250. You may the applicability of the industry stand-
use applicable provisions of these docu- ards listed in this section for fixed and
ments, as approved by the Regional Su- floating platforms:
Industry standard Applicable to . . .
(1) ACI Standard 318–95, Building Code Requirements for Reinforced Concrete (ACI 318–95) Fixed and floating platform, as
and Commentary (ACI 318R–95), appropriate.
(2) ANSI/AISC 360–05, Specification for Structural Steel Buildings;
(3) API Bulletin 2INT–DG, Interim Guidance for Design of Offshore Structures for Hurricane
Conditions;
(4) API Bulletin 2INT–EX, Interim Guidance for Assessment of Existing Offshore Structures for
Hurricane Conditions;
(5) API Bulletin 2INT–MET, Interim Guidance on Hurricane Conditions in the Gulf of Mexico;
(6) API RP 2A–WSD, RP for Planning, Designing, and Constructing Fixed Offshore Plat-
forms—Working Stress Design;
(7) ASTM Standard C 33–07, approved December 15, 2007, Standard Specification for Con-
crete Aggregates;
(8) ASTM Standard C 94/C 94M–07, approved January 1, 2007, Standard Specification for
Ready-Mixed Concrete;
(9) ASTM Standard C 150–07, approved May 1, 2007, Standard Specification for Portland Ce-
ment;
(10) ASTM Standard C 330–05, approved December 15, 2005, Standard Specification for
Lightweight Aggregates for Structural Concrete;
(11) ASTM Standard C 595–08, approved January 1, 2008, Standard Specification for Blended
Hydraulic Cements;
(12) AWS D1.1, Structural Welding Code—Steel;
(13) AWS D1.4, Structural Welding Code—Reinforcing Steel;
(14) AWS D3.6M, Specification for Underwater Welding;
(15) NACE Standard RP 0176–2003, Standard Recommended Practice (RP), Corrosion Con-
trol of Steel Fixed Offshore Platforms Associated with Petroleum Production;
(16) ACI 357R–84, Guide for the Design and Construction of Fixed Offshore Concrete Struc- Fixed platforms.
tures, 1984; reapproved 1997,
(17) API RP 14J, RP for Design and Hazards Analysis for Offshore Production Facilities; Floating platforms.
(18) API RP 2FPS, RP for Planning, Designing, and Constructing, Floating Production Sys-
tems;
(19) API RP 2RD, Design of Risers for Floating Production Systems (FPSs) and Tension-Leg
Platforms (TLPs);
(20) API RP 2SK, RP for Design and Analysis of Station Keeping Systems for Floating Struc-
tures;
(21) API RP 2T, RP for Planning, Designing, and Constructing Tension Leg Platforms;
(22) API RP 2SM, RP for Design, Manufacture, Installation, and Maintenance of Synthetic
Fiber Ropes for Offshore Mooring;
(23) API RP 2I, In-Service Inspection of Mooring Hardware for Floating Drilling Units
[76 FR 64462, Oct. 18, 2011, as amended at 81 Subpart Q—Decommissioning Activi-

FR 36150, June 6, 2016] ties of this part.
for platform removal and location
clearance?
You must remove all structures ac-
cording to §§ 250.1725 through 250.1730 of
196
§ 250.903 What records must I keep? PLATFORM APPROVAL PROGRAM

(a) You must compile, retain, and § 250.904 What is the Platform Ap-
make available to BSEE representa- proval Program?
tives for the functional life of all plat- (a) The Platform Approval Program
forms: is the BSEE basic approval process for
(1) The as-built drawings; platforms on the OCS. The require-
(2) The design assumptions and anal- ments of the Platform Approval Pro-
yses; gram are described in §§ 250.904 through
(3) A summary of the fabrication and 250.908 of this subpart. Completing
installation nondestructive examina- these requirements will satisfy BSEE
tion records; criteria for approval of fixed platforms
(4) The inspection results from the of a proven design that will be placed
inspections required by § 250.919 of this in the shallow water areas (≤400 ft.) of
subpart; and the Gulf of Mexico OCS.
(5) Records of repairs not covered in (b) The requirements of the Platform
the inspection report submitted under Approval Program must be met by all
§ 250.919(b). platforms on the OCS. Additionally, if
you want approval for a floating plat-
(b) You must record and retain the
form; a platform of unique design; or a
original material test results of all pri- platform being installed in deepwater
mary structural materials during all (≤ 400 ft.) or a frontier area, you must
stages of construction. Primary mate- also meet the requirements of the Plat-
rial is material that, should it fail, form Verification Program. The re-
would lead to a significant reduction in quirements of the Platform
platform safety, structural reliability, Verification Program are described in
or operating capabilities. Items such as §§ 250.909 through 250.918 of this sub-
steel brackets, deck stiffeners and sec- part.
ondary braces or beams would not gen-
erally be considered primary structural § 250.905 How do I get approval for the
members (or materials). installation, modification, or repair
of my platform?
(c) You must provide BSEE with the
location of these records in the certifi- The Platform Approval Program re-
cation statement of your application quires that you submit the informa-
for platform approval as required in tion, documents, and fee listed in the
§ 250.905(j). following table for your proposed
project. In lieu of submitting the paper
copies specified in the table, you may
submit your application electronically
in accordance with 30 CFR 250.186(a)(3).
Required submittal Required contents Other requirements
(a) Application cover letter ........................ Proposed structure designation, lease You must submit three copies. If, your
number, area, name, and block num- facility is subject to the Platform
ber, and the type of facility your facility Verification Program (PVP), you must
(e.g., drilling, production, quarters). submit four copies.
The structure designation must be
unique for the field (some fields are
made up of several blocks); i.e. once
a platform ‘‘A’’ has been used in the
field there should never be another
platform ‘‘A’’ even if the old platform
‘‘A’’ has been removed. Single well
free standing caissons should be
given the same designation as the
well. All other structures are to be
designated by letter designations.
197
§ 250.905 30 CFR Ch. II (7–1–18 Edition)
(b) Location plat ........................................ Latitude and longitude coordinates, Uni- Your plat must be drawn to a scale of 1
versal Mercator grid-system coordi- inch equals 2,000 feet and include the
nates, state plane coordinates in the coordinates of the lease block bound-
Lambert or Transverse Mercator Pro- ary lines. You must submit three cop-
jection System, and distances in feet ies.
from the nearest block lines. These
coordinates must be based on the
NAD (North American Datum) 27
datum plane coordinate system.
(c) Front, Side, and Plan View drawings .. Platform dimensions and orientation, ele- Your drawing sizes must not exceed 11″
vations relative to M.L.L.W. (Mean × 17″. You must submit three copies
Lower Low Water), and pile sizes and (four copies for PVP applications).
penetration.
(d) Complete set of structural drawings .... The approved for construction fabrication Your drawing sizes must not exceed 11″
drawings should be submitted includ- × 17″. You must submit one copy.
ing; e.g., cathodic protection systems;
jacket design; pile foundations; drilling,
production, and pipeline risers and
riser tensioning systems; turrets and
turret-and-hull interfaces; mooring and
tethering systems; foundations and
anchoring systems.
(e) Summary of environmental data .......... A summary of the environmental data You must submit one copy.
described in the applicable standards
referenced under § 250.901(a) of this
subpart and in § 250.198 of Subpart A,
where the data is used in the design
or analysis of the platform. Examples
of relevant data include information on
waves, wind, current, tides, tempera-
ture, snow and ice effects, marine
growth, and water depth.
(f) Summary of the engineering design Loading information (e.g., live, dead, en- You must submit one copy.
data. vironmental), structural information
(e.g., design-life; material types; ca-
thodic protection systems; design cri-
teria; fatigue life; jacket design; deck
design; production component design;
pile foundations; drilling, production,
and pipeline risers and riser tensioning
systems; turrets and turret-and-hull
interfaces; foundations, foundation pil-
ings and templates, and anchoring
systems; mooring or tethering sys-
tems; fabrication and installation
guidelines), and foundation information
(e.g., soil stability, design criteria).
(g) Project-specific studies used in the All studies pertinent to platform design You must submit one copy of each
platform design or installation. or installation, e.g., oceanographic study.
and/or soil reports including the overall
site investigative report required in
§ 250.906.
(h) Description of the loads imposed on Loads imposed by jacket; decks; produc- You must submit one copy.
the facility. tion components; drilling, production,
and pipeline risers, and riser ten-
sioning systems; turrets and turret-
and-hull interfaces; foundations, foun-
dation pilings and templates, and an-
choring systems; and mooring or teth-
ering systems.
(i) Summary of safety factors utilized ........ A summary of pertinent derived factors You must submit one copy.
of safety against failure for major
structural members, e.g., unity check
ratios exceeding 0.85 for steel-jacket
platform members, indicated on ‘‘line’’
sketches of jacket sections.
(j) A copy of the in-service inspection plan This plan is described in § 250.919 ........ You must submit one copy.
198
(k) Certification statement ......................... The following statement: ‘‘The design of An authorized company representative
this structure has been certified by a must sign the statement. You must
recognized classification society, or a submit one copy.
registered civil or structural engineer
or equivalent, or a naval architect or
marine engineer or equivalent, spe-
cializing in the design of offshore
structures. The certified design and
as-built plans and specifications will
be on file at (give location)’’.
(l) Payment of the service fee listed in
§ 250.125.
§ 250.906 What must I do to obtain ap- and sampling to examine all important
proval for the proposed site of my soil and rock strata to determine its
platform? strength classification, deformation
(a) Shallow hazards surveys. You must properties, and dynamic characteris-
perform a high-resolution or acoustic- tics. If required to perform a sub-
profiling survey to obtain information surface survey, you must prepare and
on the conditions existing at and near submit to the Regional Supervisor a
the surface of the seafloor. You must summary report to briefly describe the
collect information through this sur- results of your soil testing program,
vey sufficient to determine the pres- the various field and laboratory test
ence of the following features and their methods employed, and the applica-
likely effects on your proposed plat- bility of these methods as they pertain
form: to the quality of the samples, the type
(1) Shallow faults; of soil, and the anticipated design ap-
plication. You must explain how the
(2) Gas seeps or shallow gas;
engineering properties of each soil
(3) Slump blocks or slump sediments;
stratum affect the design of your plat-
(4) Shallow water flows; form. In your explanation you must de-
(5) Hydrates; or scribe the uncertainties inherent in
(6) Ice scour of seafloor sediments. your overall testing program, and the
(b) Geologic surveys. You must per- reliability and applicability of each
form a geological survey relevant to test method.
the design and siting of your platform. (d) Overall site investigation report.
Your geological survey must assess: You must prepare and submit to the
(1) Seismic activity at your proposed Regional Supervisor an overall site in-
site; vestigation report for your platform
(2) Fault zones, the extent and geom- that integrates the findings of your
etry of faulting, and attenuation ef- shallow hazards surveys and geologic
fects of geologic conditions near your surveys, and, if required, your sub-
site; and surface surveys. Your overall site in-
(3) For platforms located in pro- vestigation report must include anal-
ducing areas, the possibility and effects yses of the potential for:
of seafloor subsidence. (1) Scouring of the seafloor;
(c) Subsurface surveys. Depending (2) Hydraulic instability;
upon the design and location of your (3) The occurrence of sand waves;
proposed platform and the results of (4) Instability of slopes at the plat-
the shallow hazard and geologic sur- form location;
veys, the Regional Supervisor may re- (5) Liquefaction, or possible reduc-
quire you to perform a subsurface sur- tion of soil strength due to increased
vey. This survey will include a testing pore pressures;
program for investigating the strati- (6) Degradation of subsea permafrost
graphic and engineering properties of layers;
the soil that may affect the founda- (7) Cyclic loading;
tions or anchoring systems for your fa- (8) Lateral loading;

cility. The testing program must in- (9) Dynamic loading;
clude adequate in situ testing, boring, (10) Settlements and displacements;
199
§ 250.907 30 CFR Ch. II (7–1–18 Edition)
(11) Plastic deformation and forma- as necessary, other points throughout

tion collapse mechanisms; and the anchor pattern to establish the soil
(12) Soil reactions on the platform profile suitable for foundation design
foundations or anchoring systems. purposes.
§ 250.907 Where must I locate founda- § 250.908 What are the minimum struc-
tion boreholes? tural fatigue design requirements?
(a) For fixed or bottom-founded plat-
(a) API RP 2A–WSD, Recommended
forms and tension leg platforms, your
Practice for Planning, Designing and
maximum distance from any founda-
tion pile to a soil boring must not ex- Constructing Fixed Offshore Platforms
ceed 500 feet. (as incorporated by reference in
(b) For deepwater floating platforms § 250.198), requires that the design fa-
which utilize catenary or taut-leg tigue life of each joint and member be
moorings, you must take borings at twice the intended service life of the
the most heavily loaded anchor loca- structure. When designing your plat-
tion, at the anchor points approxi- form, the following table provides min-
mately 120 and 240 degrees around the imum fatigue life safety factors for
anchor pattern from that boring, and, critical structural members and joints.
If . . . Then . . .
(1) There is sufficient structural redundancy to prevent cata- The results of the fatigue analysis must indicate a minimum
strophic failure of the platform or structure under consider- calculated life of twice the design life of the platform.
ation,
(2) There is not sufficient structural redundancy to prevent cat- The results of a fatigue analysis must indicate a minimum cal-
astrophic failure of the platform or structure, culated life or three times the design life of the platform.
(3) The desirable degree of redundancy is significantly reduced The results of a fatigue analysis must indicate a minimum cal-
as a result of fatigue damage, culated life of three times the design life of the platform.
(b) The documents incorporated by are in addition to the requirements of

reference in § 250.901 may require larger the Platform Approval Program de-
safety factors than indicated in para- scribed in §§ 250.904 through 250.908 of
graph (a) of this section for some key this subpart.
components. When the documents in-
corporated by reference require a larg- § 250.910 Which of my facilities are
er safety factor than the chart in para- subject to the Platform Verification
graph (a) of this section, the require- Program?
ments of the incorporated document (a) All new fixed or bottom-founded
will prevail. platforms that meet any of the fol-
lowing five conditions are subject to
FR 36150, June 6, 2016] the Platform Verification Program:
(1) Platforms installed in water
PLATFORM VERIFICATION PROGRAM depths exceeding 400 feet (122 meters);
(2) Platforms having natural periods
§ 250.909 What is the Platform in excess of 3 seconds;
Verification Program? (3) Platforms installed in areas of un-
The Platform Verification Program stable bottom conditions;
is the BSEE approval process for ensur- (4) Platforms having configurations
ing that floating platforms; platforms and designs which have not previously
of a new or unique design; platforms in been used or proven for use in the area;
seismic areas; or platforms located in or
deepwater or frontier areas meet strin- (5) Platforms installed in seismically
gent requirements for design and con- active areas.
struction. The program is applied dur- (b) All new floating platforms are
ing construction of new platforms and subject to the Platform Verification
major modifications of, or repairs to, Program to the extent indicated in the
existing platforms. These requirements following table:
200
If . . . Then . . .
(1) Your new floating platform is a buoyant offshore facility that The entire platform is subject to the Platform Verification Pro-
does not have a ship-shaped hull, gram including the following associated structures:
(i) Drilling, production, and pipeline risers, and riser tensioning
systems (each platform must be designed to accommodate
all the loads imposed by all risers and riser does not have
tensioning systems);
(ii) Turrets and turret-and-hull interfaces;
(iii) Foundations, foundation pilings and templates, and anchor-
ing systems; and
(iv) Mooring or tethering systems.
(2) Your new floating platform is a buoyant offshore facility with Only the following structures that may be associated with a
a ship-shaped hull, floating platform are subject to the Platform Verification Pro-
gram:
(i) Drilling, production, and pipeline risers, and riser tensioning
systems (each platform must be designed to accommodate
all the loads imposed by all risers and riser tensioning sys-
tems);
(iii) Foundations, foundation pilings and templates, and anchor-
ing systems; and
(c) If a platform is originally subject found in §§ 250.904 through 250.908 of

to the Platform Verification Program, this subpart.
then the conversion of that platform at (c) Submit for the Regional Super-
that same site for a new purpose, or visor’s approval three copies each of
making a major modification of, or the design verification, fabrication
major repair to, that platform, is also verification, and installation
subject to the Platform Verification verification plans required by § 250.912;
Program. A major modification in- (d) Submit a complete schedule of all
cludes any modification that increases phases of design, fabrication, and in-
loading on a platform by 10 percent or stallation for the Regional Supervisor’s
more. A major repair is a corrective op- approval. You must include a project
eration involving structural members
management timeline, Gantt Chart,
affecting the structural integrity of a
that depicts when interim and final re-
portion or all of the platform. Before
ports required by §§ 250.916, 250.917, and
you make a major modification or re-
250.918 will be submitted to the Re-
pair to a floating platform, you must
obtain approval from both the BSEE gional Supervisor for each phase. On
and the USCG. the timeline, you must break-out the
(d) The applicability of Platform specific scopes of work that inherently
Verification Program requirements to stand alone (e.g., deck, mooring sys-
other types of facilities will be deter- tems, tendon systems, riser systems,
mined by BSEE on a case-by-case basis. turret systems).
(e) Include your nomination of a Cer-
§ 250.911 If my platform is subject to tified Verification Agent (CVA) as a
the Platform Verification Program, part of each verification plan required
what must I do? by § 250.912;
If your platform, conversion, or (f) Follow the additional require-
major modification or repair meets the ments in §§ 250.913 through 250.918;
criteria in § 250.910, you must: (g) Obtain approval for modifications
(a) Design, fabricate, install, use, to approved plans and for major devi-
maintain and inspect your platform, ations from approved installation pro-
conversion, or major modification or cedures from the Regional Supervisor;
repair to your platform according to and
the requirements of this subpart, and (h) Comply with applicable USCG
the applicable documents listed in
regulations for floating OCS facilities.

§ 250.901(a) of this subpart;
(b) Comply with all the requirements
of the Platform Approval Program
201
§ 250.912 30 CFR Ch. II (7–1–18 Edition)
§ 250.912 What plans must I submit (iv) Fabrication standards;

under the Platform Verification (v) Material quality-control proce-
Program? dures;
If your platform, associated struc- (vi) Methods and extent of non-
ture, or major modification meets the destructive examinations for welds and
criteria in § 250.910, you must submit materials; and
the following plans to the Regional Su- (vii) Quality assurance procedures.
pervisor for approval: (c) Installation verification plan. The
(a) Design verification plan. You may Regional Supervisor must approve your
submit your design verification plan to installation verification plan before
BSEE with or subsequent to the sub- you may initiate any related oper-
mittal of your Development and Pro- ations. Your installation verification
duction Plan (DPP) or Development plan must include:
Operations Coordination Document (1) A summary description of the
(DOCD) to BOEM. Your design planned marine operations;
verification must be conducted by, or (2) Contingencies considered;
be under the direct supervision of, a (3) Alternative courses of action; and
registered professional civil or struc- (4) An identification of the areas to
tural engineer or equivalent, or a naval be inspected. You must specify the ac-
architect or marine engineer or equiva- ceptance and rejection criteria to be
lent, with previous experience in di- used for any inspections conducted dur-
recting the design of similar facilities, ing installation, and for the post-in-
systems, structures, or equipment. For stallation verification inspection.
floating platforms, you must ensure (d) You must combine fabrication
that the requirements of the USCG for verification and installation
structural integrity and stability, e.g., verification plans for manmade islands
verification of center of gravity, etc., or platforms fabricated and installed in
have been met. Your design place.
verification plan must include the fol-
§ 250.913 When must I resubmit Plat-
lowing: form Verification Program plans?
(1) All design documentation speci-
fied in § 250.905 of this subpart; (a) You must resubmit any design
(2) Abstracts of the computer pro- verification, fabrication verification,
grams used in the design process; and or installation verification plan to the
(3) A summary of the major design Regional Supervisor for approval if:
considerations and the approach to be (1) The CVA changes;
used to verify the validity of these de- (2) The CVA’s or assigned personnel’s
sign considerations. qualifications change; or
(b) Fabrication verification plan. The (3) The level of work to be performed
Regional Supervisor must approve your changes.
fabrication verification plan before you (b) If only part of a verification plan
may initiate any related operations. is affected by one of the changes de-
Your fabrication verification plan must scribed in paragraph (a) of this section,
include the following: you can resubmit only the affected
(1) Fabrication drawings and mate- part. You do not have to resubmit the
rial specifications for artificial island summary of technical details unless
structures and major members of con- you make changes in the technical de-
crete-gravity and steel-gravity struc- tails.
tures;
(2) For jacket and floating struc- § 250.914 How do I nominate a CVA?
tures, all the primary load-bearing (a) As part of your design
members included in the space-frame verification, fabrication verification,
analysis; and or installation verification plan, you
(3) A summary description of the fol- must nominate a CVA for the Regional
lowing: Supervisor’s approval. You must speci-
(i) Structural tolerances; fy whether the nomination is for the
(ii) Welding procedures; design, fabrication, or installation

(iii) Material (concrete, gravel, or phase of verification, or for any com-
silt) placement methods; bination of these phases.
202
(b) For each CVA, you must submit a (b) Individuals or organizations act-
list of documents to be forwarded to ing as CVAs must not function in any
the CVA, and a qualification statement capacity that would create a conflict of
that includes the following: interest, or the appearance of a conflict
(1) Previous experience in third-party of interest.
verification or experience in the de- (c) The CVA must consider the appli-
sign, fabrication, installation, or major cable provisions of the documents list-
modification of offshore oil and gas
ed in § 250.901(a); the alternative codes,
platforms. This should include fixed
rules, and standards approved under
platforms, floating platforms, man-
made islands, other similar marine § 250.901(b); and the requirements of
structures, and related systems and this subpart.
equipment; (d) The CVA is the primary contact
(2) Technical capabilities of the indi- with the Regional Supervisor and is di-
vidual or the primary staff for the spe- rectly responsible for providing imme-
cific project; diate reports of all incidents that af-
(3) Size and type of organization or fect the design, fabrication and instal-
corporation; lation of the platform.
(4) In-house availability of, or access
to, appropriate technology. This should § 250.916 What are the CVA’s primary
include computer programs, hardware, duties during the design phase?
and testing materials and equipment; (a) The CVA must use good engineer-
(5) Ability to perform the CVA func- ing judgment and practices in con-
tions for the specific project consid- ducting an independent assessment of
ering current commitments;
the design of the platform, major modi-
(6) Previous experience with BSEE
requirements and procedures; fication, or repair. The CVA must en-
(7) The level of work to be performed sure that the platform, major modi-
by the CVA. fication, or repair is designed to with-
stand the environmental and func-
§ 250.915 What are the CVA’s primary tional load conditions appropriate for
responsibilities? the intended service life at the pro-
(a) The CVA must conduct specified posed location.
reviews according to §§ 250.916, 250.917, (b) Primary duties of the CVA during
and 250.918 of this subpart. the design phase include the following:
Type of facility . . . The CVA must . . .
(1) For fixed platforms and non-ship- Conduct an independent assessment of all proposed:
shaped floating facilities, (i) Planning criteria;
(ii) Operational requirements;
(iii) Environmental loading data;
(iv) Load determinations;
(v) Stress analyses;
(vi) Material designations;
(vii) Soil and foundation conditions;
(viii) Safety factors; and
(ix) Other pertinent parameters of the proposed design.
(2) For all floating facilities, Ensure that the requirements of the U.S. Coast Guard for structural integrity and
stability, e.g., verification of center of gravity, etc., have been met. The CVA
must also consider:
(i) Drilling, production, and pipeline risers, and riser tensioning systems;
(iii) Foundations, foundation pilings and templates, and anchoring systems; and
(c) The CVA must submit interim re- In each interim and final report the
ports and a final report to the Regional CVA must:
Supervisor, and to you, during the de- (1) Provide a summary of the mate-
sign phase in accordance with the ap- rial reviewed and the CVA’s findings;
proved schedule required by § 250.911(d).
203
§ 250.917 30 CFR Ch. II (7–1–18 Edition)
(2) In the final CVA report, make a ducting an independent assessment of

recommendation that the Regional Su- the fabrication activities. The CVA
pervisor either accept, request modi- must monitor the fabrication of the
fications, or reject the proposed design platform or major modification to en-
unless such a recommendation has sure that it has been built according to
been previously made in an interim re- the approved design and the fabrication
port; plan. If the CVA finds that fabrication
(3) Describe the particulars of how, procedures are changed or design speci-
by whom, and when the independent re-
fications are modified, the CVA must
view was conducted; and
inform you. If you accept the modifica-
(4) Provide any additional comments
the CVA deems necessary. tions, then the CVA must so inform the
Regional Supervisor.
§ 250.917 What are the CVA’s primary (b) Primary duties of the CVA during
duties during the fabrication the fabrication phase include the fol-
phase? lowing:
(a) The CVA must use good engineer-
ing judgment and practices in con-
Type of facility . . . The CVA must . . .
(1) For all fixed platforms and non-ship- Make periodic onsite inspections while fabrication is in progress and must verify
shaped floating facilities, the following fabrication items, as appropriate:
(i) Quality control by lessee and builder;
(ii) Fabrication site facilities;
(iii) Material quality and identification methods;
(iv) Fabrication procedures specified in the approved plan, and adherence to such
procedures;
(v) Welder and welding procedure qualification and identification;
(vi) Structural tolerances specified and adherence to those tolerances;
(vii) The nondestructive examination requirements, and evaluation results of the
specified examinations;
(viii) Destructive testing requirements and results;
(ix) Repair procedures;
(x) Installation of corrosion-protection systems and splash-zone protection;
(xi) Erection procedures to ensure that overstressing of structural members does
not occur;
(xii) Alignment procedures;
(xiii) Dimensional check of the overall structure, including any turrets, turret-and-
hull interfaces, any mooring line and chain and riser tensioning line segments;
and
(xiv) Status of quality-control records at various stages of fabrication.
(2) For all floating facilities, Ensure that the requirements of the U.S. Coast Guard floating for structural integ-
rity and stability, e.g., verification of center of gravity, etc., have been met. The
CVA must also consider:
(i) Drilling, production, and pipeline risers, and riser tensioning systems (at least for
the initial fabrication of these elements);
(iii) Foundation pilings and templates, and anchoring systems; and
(c) The CVA must submit interim re- (4) Confirm or deny compliance with
ports and a final report to the Regional the design specifications and the ap-
Supervisor, and to you, during the fab- proved fabrication plan;
rication phase in accordance with the (5) In the final CVA report, make a
approved schedule required by recommendation to accept or reject
§ 250.911(d). In each interim and final the fabrication unless such a rec-
report the CVA must: ommendation has been previously
(1) Give details of how, by whom, and made in an interim report; and
when the independent monitoring ac- (6) Provide any additional comments
tivities were conducted; that the CVA deems necessary.
(2) Describe the CVA’s activities dur-

ing the verification process;
(3) Summarize the CVA’s findings;
204
§ 250.918 What are the CVA’s primary ducting an independent assessment of

duties during the installation the installation activities.
phase? (b) Primary duties of the CVA during
(a) The CVA must use good engineer- the installation phase include the fol-
ing judgment and practice in con- lowing:
The CVA must . . . Operation or equipment to be inspected . . .
(1) Verify, as appropriate, (i) Loadout and initial flotation operations;

(ii) Towing operations to the specified location, and review the towing records;
(iii) Launching and uprighting operations;
(iv) Submergence operations;
(v) Pile or anchor installations;
(vi) Installation of mooring and tethering systems;
(vii) Final deck and component installations; and
(viii) Installation at the approved location according to the approved design and the
installation plan.
(2) Witness (for a fixed or floating plat- (i) The loadout of the jacket, decks, piles, or structures from each fabrication site;
form),
(ii) The actual installation of the platform or major modification and the related in-
stallation activities.
(3) Witness (for a floating platform), (i) The loadout of the platform;
(ii) The installation of drilling, production, and pipeline risers, and riser tensioning
systems (at least for the initial installation of these elements);
(iii) The installation of turrets and turret-and-hull interfaces;
(iv) The installation of foundation pilings and templates, and anchoring systems;
and
(v) The installation of the mooring and tethering systems.
(4) Conduct an onsite survey, Survey the platform after transportation to the approved location.
(5) Spot-check as necessary to determine (i) Equipment;
compliance with the applicable docu- (ii) Procedures; and
ments listed in § 250.901(a); the alter- (iii) Recordkeeping.
native codes, rules and standards ap-
proved under § 250.901(b); the require-
ments listed in § 250.903 and §§ 250.906
through 250.908 of this subpart and the
approved plans,
(c) The CVA must submit interim re- INSPECTION, MAINTENANCE, AND
ports and a final report to the Regional ASSESSMENT OF PLATFORMS
Supervisor, and to you, during the in-
stallation phase in accordance with the § 250.919 What in-service inspection
approved schedule required by requirements must I meet?
§ 250.911(d). In each interim and final (a) You must submit a comprehensive
report the CVA must: in-service inspection report annually
(1) Give details of how, by whom, and by November 1 to the Regional Super-
when the independent monitoring ac- visor that must include:
tivities were conducted; (1) A list of fixed and floating plat-
(2) Describe the CVA’s activities dur- forms you inspected in the preceding 12
ing the verification process; months;
(3) Summarize the CVA’s findings; (2) The extent and area of inspection
(4) Confirm or deny compliance with for both the above-water and under-
water portions of the platform and the
the approved installation plan;
pertinent components of the mooring
(5) In the final report, make a rec- system for floating platforms;
ommendation to accept or reject the
(3) The type of inspection employed
installation unless such a recommenda- (e.g., visual, magnetic particle, ultra-
tion has been previously made in an in- sonic testing);
terim report; and (4) The overall structural condition
(6) Provide any additional comments of each platform, including a corrosion
that the CVA deems necessary. protection evaluation; and
(5) A summary of the inspection re-

sults indicating what repairs, if any,
were needed.
205
§ 250.920 30 CFR Ch. II (7–1–18 Edition)
(b) If any of your structures have adversely affected); or the exposure

been exposed to a natural occurrence category changes to a more restrictive
(e.g., hurricane, earthquake, or trop- level (see Sections 17.2.1 through 17.2.5
ical storm), the Regional Supervisor of API RP 2A–WSD, incorporated by
may require you to submit an initial reference in § 250.198, for a description
report of all structural damage, fol- of assessment initiators).
lowed by subsequent updates, which in- (c) You must initiate mitigation ac-
clude the following: tions for platforms that do not pass the
(1) A list of affected structures; assessment process of API RP 2A–WSD.
(2) A timetable for conducting the in- You must submit applications for your
spections described in section 14.4.3 of mitigation actions (e.g., repair, modi-
API RP 2A–WSD (as incorporated by fication, decommissioning) to the Re-
reference in § 250.198); and gional Supervisor for approval before
(3) An inspection plan for each struc- you conduct the work.
ture that describes the work you will (d) The BSEE may require you to
perform to determine the condition of conduct a platform design basis check
the structure. when the reduced environmental load-
(c) The Regional Supervisor may also ing criteria contained in API RP 2A–
require you to submit the results of the WSD Section 17.6 are not applicable.
inspections referred to in paragraph (e) By November 1, 2009, you must
(b)(2) of this section, including a de- submit a complete list of all the plat-
scription of any detected damage that forms you operate, together with all
may adversely affect structural integ- the appropriate data to support the as-
rity, an assessment of the structure’s sessment category you assign to each
ability to withstand any anticipated platform and the platform assessment
environmental conditions, and any re- initiators (as defined in API RP 2A–
mediation plans. Under §§ 250.900(b)(3) WSD) to the Regional Supervisor. You
and 250.905, you must obtain approval must submit subsequent complete lists
from BSEE before you make major re- and the appropriate data to support the
pairs of any damage unless you meet consequence-of-failure category every 5
the requirements of § 250.900(c). years thereafter, or as directed by the
Regional Supervisor.
§ 250.920 What are the BSEE require- (f) The use of Section 17, Assessment
ments for assessment of fixed plat- of Existing Platforms, of API RP 2A–
forms? WSD is limited to existing fixed struc-
(a) You must document all wells, tures that are serving their original ap-
equipment, and pipelines supported by proved purpose. You must obtain ap-
the platform if you intend to use either proval from the Regional Supervisor
the A–2 or A–3 assessment category. for any change in purpose of the plat-
Assessment categories are defined in form, following the provisions of API
API RP 2A–WSD, Section 17.3 (as incor- RP 2A–WSD, Section 15, Re-use.
porated by reference in § 250.198). If [76 FR 64462, Oct. 18, 2011, as amended at 81
BSEE objects to the assessment cat- FR 36150, June 6, 2016]
egory you used for your assessment,
you may need to redesign and/or mod- § 250.921 How do I analyze my plat-
ify the platform to adequately dem- form for cumulative fatigue?
onstrate that the platform is able to (a) If you are required to analyze cu-
withstand the environmental loadings mulative fatigue on your platform be-
for the appropriate assessment cat- cause of the results of an inspection or
egory. platform assessment, you must ensure
(b) You must perform an analysis that the safety factors for critical ele-
check when your platform will have ad- ments listed in § 250.908 are met or ex-
ditional personnel, additional topside ceeded.
facilities, increased environmental or (b) If the calculated life of a joint or
operational loading, inadequate deck member does not meet the criteria of
height, or suffered significant damage § 250.908, you must either mitigate the
(e.g., experienced damage to primary load, strengthen the joint or member,

structural members or conductor guide or develop an increased inspection
trays or global structural integrity is process.
206
Subpart J—Pipelines and Pipeline ment of Transportation (DOT) pipeline

Rights-of-Way official may jointly determine the
transfer point.
§ 250.1000 General requirements. (4) The transfer point serves as a reg-
(a) Pipelines and associated valves, ulatory boundary. An operator may re-
flanges, and fittings shall be designed, quest that the BSEE Regional Super-
installed, operated, maintained, and visor grant an exception to this re-
abandoned to provide safe and pollu- quirement for an individual facility or
tion-free transportation of fluids in a area. The Regional Supervisor, in con-
manner which does not unduly inter- sultation with the appropriate DOT
fere with other uses in the Outer Conti- pipeline official and affected parties,
nental Shelf (OCS). may grant the request.
(b) An application must be accom- (5) Pipeline segments designed, con-
panied by payment of the service fee structed, maintained, and operated
listed in § 250.125 and submitted to the under DOT regulations but transferring
Regional Supervisor and approval ob- to DOI regulation as of October 16, 1998,
tained before: may continue to operate under DOT de-
(1) Installation, modification, or sign and construction requirements
abandonment of a lease term pipeline; until significant modifications or re-
(2) Installation or modification of a pairs are made to those segments.
right-of-way (other than lease term) After October 16, 1998, BSEE oper-
pipeline; or ational and maintenance requirements
(3) Modification or relinquishment of will apply to those segments.
a pipeline right-of way. (6) Any producer operating a pipeline
(c)(1) Department of the Interior that crosses into State waters without
(DOI) pipelines, as defined in § 250.1001, first connecting to a transporting oper-
must meet the requirements in ator’s facility on the OCS must comply
§§ 250.1000 through 250.1008. with this subpart. Compliance must ex-
(2) A pipeline right-of-way grant tend from the point where hydro-
holder must identify in writing to the carbons are first produced, through and
Regional Supervisor the operator of including the last valve and associated
any pipeline located on its right-of- safety equipment (e.g., pressure safety
way, if the operator is different from sensors) on the last production facility
the right-of-way grant holder. on the OCS.
(3) A producing operator must iden- (7) Any producer operating a pipeline
tify for its own records, on all existing that connects facilities on the OCS
pipelines located on its lease or right- must comply with this subpart.
of-way, the specific points at which op- (8) Any operator of a pipeline that
erating responsibility transfers to a has a valve on the OCS downstream
transporting operator. (landward) of the last production facil-
(i) Each producing operator must, if ity may ask in writing that the BSEE
practical, durably mark all of its Regional Supervisor recognize that
above-water transfer points as of the valve as the last point BSEE will exer-
date a pipeline begins service. cise its regulatory authority.
(ii) If it is not practical to durably (9) A pipeline segment is not subject
mark a transfer point, and the transfer to BSEE regulations for design, con-
point is located above water, then the struction, operation, and maintenance
operator must identify the transfer if:
point on a schematic located on the fa- (i) It is downstream (generally shore-
cility. ward) of the last valve and associated
(iii) If a transfer point is located safety equipment on the last produc-
below water, then the operator must tion facility on the OCS; and
identify the transfer point on a sche- (ii) It is subject to regulation under
matic and provide the schematic to 49 CFR parts 192 and 195.
BSEE upon request. (10) DOT may inspect all upstream
(iv) If adjoining producing and trans- safety equipment (including valves,
porting operators cannot agree on a over-pressure protection devices, ca-

transfer point, the BSEE Regional Su- thodic protection equipment, and pig-
pervisor and the appropriate Depart- ging devices, etc.) that serve to protect
207
§ 250.1001 30 CFR Ch. II (7–1–18 Edition)
the integrity of DOT-regulated pipeline cable law, a provision of these or other

segments. applicable regulations, or a condition
(11) OCS pipeline segments not sub- of a permit or right-of-way grant.
ject to DOT regulation under 49 CFR (3) The Secretary of the Interior
parts 192 and 195 are subject to all (Secretary) may cancel a pipeline per-
BSEE regulations. mit or right-of-way grant in accord-
(12) A producer may request that its ance with 43 U.S.C. 1334(a)(2). A right-
pipeline operate under DOT regulations of-way grant may be forfeited in ac-
governing pipeline design, construc- cordance with 43 U.S.C. 1334(e).
tion, operation, and maintenance.
(i) The operator’s request must be in FR 36150, June 6, 2016]
the form of a written petition to the
BSEE Regional Supervisor that states § 250.1001 Definitions.
the justification for the pipeline to op-
erate under DOT regulation. Terms used in this subpart shall have
(ii) The Regional Supervisor will de- the meanings given below:
cide, on a case-by-case basis, whether DOI pipelines include:
to grant the operator’s request. In con- (1) Producer-operated pipelines ex-
sidering each petition, the Regional tending upstream (generally seaward)
Supervisor will consult with the appro- from each point on the OCS at which
priate DOT pipeline official. operating responsibility transfers from
(13) A transporter who operates a a producing operator to a transporting
pipeline regulated by DOT may request operator;
to operate under BSEE regulations (2) Producer-operated pipelines ex-
governing pipeline operation and main- tending upstream (generally seaward)
tenance. Any subsequent repairs or of the last valve (including associated
modifications will also be subject to safety equipment) on the last produc-
BSEE regulations governing design and tion facility on the OCS that do not
construction. connect to a transporter-operated pipe-
(i) The operator’s request must be in line on the OCS before crossing into
the form of a written petition to the State waters;
appropriate DOT pipeline official and (3) Producer-operated pipelines con-
the BSEE Regional Supervisor. necting production facilities on the
(ii) The BSEE Regional Supervisor OCS;
and the appropriate DOT pipeline offi- (4) Transporter-operated pipelines
cial will decide how to act on this peti- that DOI and DOT have agreed are to
tion. be regulated as DOI pipelines; and
(d) A pipeline which qualifies as a (5) All OCS pipelines not subject to
right-of-way pipeline (see § 250.1001, regulation under 49 CFR parts 192 and
Definitions) shall not be installed until 195.
a right-of-way has been requested and DOT pipelines include:
granted in accordance with this sub- (1) Transporter-operated pipelines
part. currently operated under DOT require-
(e)(1) The Regional Supervisor may ments governing design, construction,
suspend any pipeline operation upon a maintenance, and operation;
determination by the Regional Super- (2) Producer-operated pipelines that
visor that continued activity would DOI and DOT have agreed are to be reg-
threaten or result in serious, irrep- ulated under DOT requirements gov-
arable, or immediate harm or damage erning design, construction, mainte-
to life (including fish and other aquatic nance, and operation; and
life), property, mineral deposits, or the (3) Producer-operated pipelines down-
marine, coastal, or human environ- stream (generally shoreward) of the
ment. last valve (including associated safety
(2) The Regional Supervisor may also equipment) on the last production fa-
suspend pipeline operations or a right- cility on the OCS that do not connect
of-way grant if the Regional Supervisor to a transporter-operated pipeline on
determines that the lessee or right-of- the OCS before crossing into State
way holder has failed to comply with a waters and that are regulated under 49
provision of the Act or any other appli- CFR parts 192 and 195.
208
Lease term pipelines are those pipe- For limitations see section 841.121 of
lines owned and operated by a lessee or American National Standards Institute
operator and are wholly contained (ANSI) B31.8 (as incorporated by ref-
within the boundaries of a single lease, erence in § 250.198) where—
unitized leases, or contiguous (not cor- P = Internal design pressure in pounds per
nering) leases of that lessee or oper- square inch (psi).
ator. S = Specified minimum yield strength, in
Out-of-service pipelines are those pipe- psi, stipulated in the specification under
lines that have not been used to trans- which the pipe was purchased from the
port oil, natural gas, sulfur, or pro- manufacturer or determined in accord-
duced water for more than 30 consecu- ance with section 811.253(h) of ANSI
B31.8.
tive days. D = Nominal outside diameter of pipe, in
Pipelines are the piping, risers, and inches.
appurtenances installed for the purpose t = Nominal wall thickness, in inches.
of transporting oil, gas, sulphur, and F = Construction design factor of 0.72 for the
produced water. (Piping confined to a submerged component and 0.60 for the
production platform or structure is riser component.
covered in Subpart H, Production Safe- E = Longitudinal joint factor obtained from
Table 841.1B of ANSI B31.8 (see also sec-
ty Systems, and is excluded from this tion 811.253(d)).
subpart.) T = Temperature derating factor obtained
Production facilities means OCS facili- from Table 841.1C of ANSI B31.8.
ties that receive hydrocarbon produc-
(b)(1) Pipeline valves shall meet the
tion either directly from wells or from
minimum design requirements of
other facilities that produce hydro-
American Petroleum Institute (API)
carbons from wells. They may include
Spec 6A (as incorporated by reference
processing equipment for treating the
in § 250.198), API Spec 6D (as incor-
production or separating it into its
porated by reference in § 250.198), or the
various liquid and gaseous components
equivalent. A valve may not be used
before transporting it to shore.
under operating conditions that exceed
Right-of-way pipelines are those pipe- the applicable pressure-temperature
lines which— ratings contained in those standards.
(1) Are contained within the bound- (2) Pipeline flanges and flange acces-
aries of a single lease or group of unit- sories shall meet the minimum design
ized leases but are not owned and oper- requirements of ANSI B16.5, API Spec
ated by the lessee or operator of that 6A, or the equivalent (as incorporated
lease or unit, by reference in 30 CFR 250.198). Each
(2) Are contained within the bound- flange assembly must be able to with-
aries of contiguous (not cornering) stand the maximum pressure at which
leases which do not have a common les- the pipeline is to be operated and to
see or operator, maintain its physical and chemical
(3) Are contained within the bound- properties at any temperature to which
aries of contiguous (not cornering) it is anticipated that it might be sub-
leases which have a common lessee or jected in service.
operator but are not owned and oper- (3) Pipeline fittings shall have pres-
ated by that common lessee or oper- sure-temperature ratings based on
ator, or stresses for pipe of the same or equiva-
(4) Cross any portion of an unleased lent material. The actual bursting
block(s). strength of the fitting shall at least be
equal to the computed bursting
§ 250.1002 Design requirements for strength of the pipe.
DOI pipelines. (4) If you are installing pipelines con-
(a) The internal design pressure for structed of unbonded flexible pipe, you
steel pipe shall be determined in ac- must design them according to the
cordance with the following formula: standards and procedures of API Spec
17J, as incorporated by reference in 30
CFR 250.198.
(5) You must design pipeline risers
for tension leg platforms and other
209
ER18OC11.000</GPH>
§ 250.1003 30 CFR Ch. II (7–1–18 Edition)
floating platforms according to the determines that such burial will reduce
sign standards of API RP 2RD, Design the likelihood of environmental deg-
of Risers for Floating Production Sys- radation or that the pipeline may con-
tems (FPSs) and Tension Leg Plat- stitute a hazard to trawling operations
forms (TLPs) (as incorporated by ref- or other uses. A trawl test or diver sur-
erence in § 250.198). vey may be required to determine
(c) The maximum allowable oper- whether or not pipeline burial is nec-
ating pressure (MAOP) shall not exceed essary or to determine whether a pipe-
the least of the following: line has been properly buried.
(1) Internal design pressure of the (2) Pipeline valves, taps, tie-ins,
pipeline, valves, flanges, and fittings; capped lines, and repaired sections that
(2) Eighty percent of the hydrostatic could be obstructive shall be provided
pressure test (HPT) pressure of the with at least 3 feet of cover unless the
pipeline; or Regional Supervisor determines that
(3) If applicable, the MAOP of the re- such items present no hazard to trawl-
ceiving pipeline when the proposed ing or other operations. A protective
pipeline and the receiving pipeline are device may be used to cover an ob-
connected at a subsea tie-in. struction in lieu of burial if it is ap-
(d) If the maximum source pressure proved by the Regional Supervisor
(MSP) exceeds the pipeline’s MAOP, prior to installation.
you must install and maintain redun- (3) Pipelines shall be installed with a
dant safety devices meeting the re- minimum separation of 18 inches at
quirements of section A9 of API RP 14C pipeline crossings and from obstruc-
(as incorporated by reference in tions.
§ 250.198). Pressure safety valves (PSV) (4) Pipeline risers installed after
may be used only after a determination April 1, 1988, shall be protected from
by the Regional Supervisor that the physical damage that could result from
pressure will be relieved in a safe and contact with floating vessels. Riser
pollution-free manner. The setting protection on pipelines installed on or
level at which the primary and redun- before April 1, 1988, may be required
dant safety equipment actuates shall when the Regional Supervisor deter-
not exceed the pipeline’s MAOP. mines that significant damage poten-
(e) Pipelines shall be provided with tial exists.
an external protective coating capable (b)(1) Pipelines shall be pressure test-
of minimizing underfilm corrosion and ed with water at a stabilized pressure
a cathodic protection system designed of at least 1.25 times the MAOP for at
to mitigate corrosion for at least 20 least 8 hours when installed, relocated,
years. uprated, or reactivated after being out-
(f) Pipelines shall be designed and of-service for more than 1 year.
maintained to mitigate any reasonably (2) Prior to returning a pipeline to
anticipated detrimental effects of service after a repair, the pipeline shall
water currents, storm or ice scouring, be pressure tested with water or proc-
soft bottoms, mud slides, earthquakes, essed natural gas at a minimum sta-
subfreezing temperatures, and other bilized pressure of at least 1.25 times
environmental factors. the MAOP for at least 2 hours.
(3) Pipelines shall not be pressure
§ 250.1003 Installation, testing, and re- tested at a pressure which produces a
pair requirements for DOI pipe- stress in the pipeline in excess of 95
lines. percent of the specified minimum-yield
(a)(1) Pipelines greater than 85⁄8 strength of the pipeline. A temperature
inches in diameter and installed in recorder measuring test fluid tempera-
water depths of less than 200 feet shall ture synchronized with a pressure re-
be buried to a depth of at least 3 feet corder along with deadweight test
unless they are located in pipeline con- readings shall be employed for all pres-
gested areas or seismically active areas sure testing. When a pipeline is pres-
as determined by the Regional Super- sure tested, no observable leakage shall
visor. Nevertheless, the Regional Su- be allowed. Pressure gauges and record-
pervisor may require burial of any ers shall be of sufficient accuracy to
pipeline if the Regional Supervisor de- verify that leakage is not occurring.
210
(4) The Regional Supervisor may re- and remote-emergency shut-in sys-
quire pressure testing of pipelines to tems.
verify the integrity of the system when (5) The Regional Supervisor may re-
the Regional Supervisor determines quire that oil pipelines be equipped
that there is a reasonable likelihood with a metering system to provide a
that the line has been damaged or continuous volumetric comparison be-
weakened by external or internal con- tween the input to the line at the
ditions. structure(s) and the deliveries onshore.
(c) When a pipeline is repaired uti- The system shall include an alarm sys-
lizing a clamp, the clamp shall be a full tem and shall be of adequate sensi-
encirclement clamp able to withstand tivity to detect variations between
the anticipated pipeline pressure. input and discharge volumes. In lieu of
the foregoing, a system capable of de-
§ 250.1004 Safety equipment require- tecting leaks in the pipeline may be
ments for DOI pipelines.
substituted with the approval of the
(a) The lessee shall ensure the proper Regional Supervisor.
installation, operation, and mainte- (6) Pipelines incoming to a subsea
nance of safety devices required by this tie-in shall be equipped with a block
section on all incoming, departing, and valve and an FSV. Bidirectional pipe-
crossing pipelines on platforms. lines connected to a subsea tie-in shall
(b)(1)(i) Incoming pipelines to a plat- be equipped with only a block valve.
form shall be equipped with a flow safe- (7) Gas-lift or water-injection pipe-
ty valve (FSV). lines on unmanned platforms need only
(ii) For sulphur operations, incoming be equipped with an FSV installed im-
pipelines delivering gas to the power mediately upstream of each casing an-
plant platform may be equipped with nulus or the first inlet valve on the
high- and low-pressure sensors (PSHL), christmas tree.
which activate audible and visual (8) Bidirectional pipelines shall be
alarms in lieu of requirements in para-
equipped with a PSHL and an SDV im-
graph (b)(1)(i) of this section. The
mediately upon boarding each plat-
PSHL shall be set at 15 percent or 5 psi,
form.
whichever is greater, above and below
(9) Pipeline pumps must comply with
the normal operating pressure range.
section A7 of API RP 14C (as incor-
(2) Incoming pipelines boarding a
porated by reference in § 250.198). The
production platform shall be equipped
setting levels for the PSHL devices are
with an automatic shutdown valve
specified in paragraph (b)(3) of this sec-
(SDV) immediately upon boarding the
tion.
platform. The SDV shall be connected
to the automatic- and remote-emer- (c) If the required safety equipment
gency shut-in systems. is rendered ineffective or removed from
(3) Departing pipelines receiving pro- service on pipelines which are contin-
duction from production facilities shall ued in operation, an equivalent degree
be protected by high- and low-pressure of safety shall be provided. The safety
sensors (PSHL) to directly or indi- equipment shall be identified by the
rectly shut in all production facilities. placement of a sign on the equipment
The PSHL shall be set not to exceed 15 stating that the equipment is rendered
percent above and below the normal ineffective or removed from service.
operating pressure range. However,
high pilots shall not be set above the § 250.1005 Inspection requirements for
DOI pipelines.
pipeline’s MAOP.
(4) Crossing pipelines on production (a) Pipeline routes shall be inspected
or manned nonproduction platforms at time intervals and methods pre-
which do not receive production from scribed by the Regional Supervisor for
the platform shall be equipped with an indication of pipeline leakage. The re-
SDV immediately upon boarding the sults of these inspections shall be re-
platform. The SDV shall be operated by tained for at least 2 years and be made
a PSHL on the departing pipelines and available to the Regional Supervisor
connected to the platform automatic- upon request.
211
§ 250.1006 30 CFR Ch. II (7–1–18 Edition)
(b) When pipelines are protected by § 250.1006 How must I decommission

rectifiers or anodes for which the ini- and take out of service a DOI pipe-
tial life expectancy of the cathodic pro- line?
tection system either cannot be cal- (a) The requirements for decommis-
culated or calculations indicate a life sioning pipelines are listed in § 250.1750
expectancy of less than 20 years, such through § 250.1754.
pipelines shall be inspected annually (b) The table in this section lists the
by taking measurements of pipe-to- requirements if you take a DOI pipe-
electrolyte potential. line out of service:
If you have the pipeline out of service for: Then you must:
(1) 1 year or less, Isolate the pipeline with a blind flange or a closed block valve at each end of the
pipeline.
(2) More than 1 year but less than 5 years, Flush and fill the pipeline with inhibited seawater.
(3) 5 or more years, Decommission the pipeline according to §§ 250.1750–250.1754.
§ 250.1007 What to include in applica- with associated pressure-control lines;

tions. PSV’s and settings; SDV’s, FSV’s, and
(a) Applications to install a lease block valves; and manifolds. This sche-
term pipeline or for a pipeline right-of- matic drawing shall also show input
way grant must be submitted in quad- source(s), e.g., wells, pumps, compres-
ruplicate to the Regional Supervisor. sors, and vessels; maximum input pres-
Right-of-way grant applications must sure(s); the rated working pressure, as
include an identification of the oper- specified by ANSI or API, of all valves,
ator of the pipeline. Each application flanges, and fittings; the initial receiv-
must include the following: ing equipment and its rated working
(1) Plat(s) drawn to a scale specified pressure; and associated safety equip-
by the Regional Supervisor showing ment and pig launchers and receivers.
major features and other pertinent The schematic must indicate the point
data including area, lease, and block on the OCS at which operating respon-
designations; water depths; route; sibility transfers between a producing
length in Federal waters; width of operator and a transporting operator.
right-of-way, if applicable; connecting (3) General information as follows:
facilities; size; product(s) to be trans- (i) Description of cathodic protection
ported with anticipated gravity or den- system. If pipeline anodes are to be
sity; burial depth; direction of flow; X– used, specify the type, size, weight,
Y coordinates of key points; and the lo- number, spacing, and anticipated life;
cation of other pipelines that will be (ii) Description of external pipeline
connected to or crossed by the pro- coating system;
posed pipeline(s). The initial and ter- (iii) Description of internal protec-
minal points of the pipeline and any tive measures;
continuation into State jurisdiction (iv) Specific gravity of the empty
shall be accurately located even if the pipe;
pipeline is to have an onshore terminal
(v) MSP;
point. A plat(s) submitted for a pipe-
line right-of-way shall bear a signed (vi) MAOP and calculations used in
certificate upon its face by the engi- its determination;
neer who made the map that certifies (vii) Hydrostatic test pressure, me-
that the right-of-way is accurately rep- dium, and period of time that the line
resented upon the map and that the de- will be tested;
sign characteristics of the associated (viii) MAOP of the receiving pipeline
pipeline are in accordance with appli- or facility,
cable regulations. (ix) Proposed date for commencing
(2) A schematic drawing showing the installation and estimated time for
size, weight, grade, wall thickness, and construction; and
type of line pipe and risers; pressure- (x) Type of protection to be afforded
regulating devices (including back- crossing pipelines, subsea valves, taps,
pressure regulators); sensing devices and manifold assemblies, if applicable.
212
(4) A description of any additional de- least 48 hours prior to commencing the
sign precautions you took to enable installation or relocation of a pipeline
the pipeline to withstand the effects of or conducting a pressure test on a pipe-
water currents, storm or ice scouring, line.
soft bottoms, mudslides, earthquakes, (b) The lessee or right-of-way holder
permafrost, and other environmental shall submit a report to the Regional
factors. Supervisor within 90 days after comple-
(i) If you propose to use unbonded tion of any pipeline construction. The
flexible pipe, your application must in- report, submitted in triplicate, shall
clude: include an ‘‘as-built’’ location plat
(A) The manufacturer’s design speci- drawn to a scale specified by the Re-
fication sheet; gional Supervisor showing the loca-
(B) The design pressure (psi); tion, length in Federal waters, and X–
(C) An identification of the design Y coordinates of key points; the com-
standards you used; and pletion date; the proposed date of first
(D) A review by a third-party inde- operation; and the HPT data. Pipeline
pendent verification agent (IVA) ac- right-of-way ‘‘as-built’’ location plats
cording to API Spec 17J (as incor- shall be certified by a registered engi-
porated by reference in § 250.198), if ap- neer or land surveyor and show the
plicable. boundaries of the right-of-way as
(ii) If you propose to use one or more granted. If there is a substantial devi-
pipeline risers for a tension leg plat- ation of the pipeline route as granted
form or other floating platform, your in the right-of-way, the report shall in-
application must include: clude a discussion of the reasons for
(A) The design fatigue life of the such deviation.
riser, with calculations, and the fa-
(c) The lessee or right-of-way holder
tigue point at which you would replace
shall report to the Regional Supervisor
the riser;
any pipeline taken out of service. If the
(B) The results of your vortex-in-
period of time in which the pipeline is
duced vibration (VIV) analysis;
(C) An identification of the design out of service is greater than 60 days,
standards you used; and written confirmation is also required.
(D) A description of any necessary (d) The lessee or right-of-way holder
mitigation measures such as the use of shall report to the Regional Supervisor
helical strakes or anchoring devices. when any required pipeline safety
(5) The application shall include a equipment is taken out of service for
shallow hazards survey report and, if more than 12 hours. The Regional Su-
required by the Regional Director, an pervisor shall be notified when the
archaeological resource report that equipment is returned to service.
covers the entire length of the pipeline. (e) The lessee or right-of-way holder
A shallow hazards analysis may be in- must notify the Regional Supervisor
cluded in a lease term pipeline applica- before the repair of any pipeline or as
tion in lieu of the shallow hazards sur- soon as practicable. Your notification
vey report with the approval of the Re- must be accompanied by payment of
gional Director. The Regional Director the service fee listed in § 250.125. You
may require the submission of the data must submit a detailed report of the
upon which the report or analysis is repair of a pipeline or pipeline compo-
based. nent to the Regional Supervisor within
(b) Applications to modify an ap- 30 days after the completion of the re-
proved lease term pipeline or right-of- pairs. In the report you must include
way grant shall be submitted in quad- the following:
ruplicate to the Regional Supervisor. (1) Description of repairs;
These applications need only address (2) Results of pressure test; and
those items in the original application (3) Date returned to service.
affected by the proposed modification. (f) The Regional Supervisor may re-
quire that DOI pipeline failures be ana-
§ 250.1008 Reports. lyzed and that samples of a failed sec-

(a) The lessee, or right-of-way holder, tion be examined in a laboratory to as-
shall notify the Regional Supervisor at sist in determining the cause of the
213
§ 250.1009 30 CFR Ch. II (7–1–18 Edition)
failure. A comprehensive written re- greater width, and shall be limited to

port of the information obtained shall the area reasonably necessary for
be submitted by the lessee to the Re- pumping stations or other accessory
gional Supervisor as soon as available. structures.
(g) If the effects of scouring, soft bot-
toms, or other environmental factors § 250.1010 General requirements for
are observed to be detrimentally af- pipeline right-of-way holders.
fecting a pipeline, a plan of corrective An applicant, by accepting a right-of-
action shall be submitted to the Re- way grant, agrees to comply with the
gional Supervisor for approval within following requirements:
30 days of the observation. A report of (a) The right-of-way holder shall
the remedial action taken shall be sub- comply with applicable laws and regu-
mitted to the Regional Supervisor by lations and the terms of the grant.
the lessee or right-of-way holder within (b) The granting of the right-of-way
30 days after completion.
shall be subject to the express condi-
(h) The results and conclusions of
tion that the rights granted shall not
measurements of pipe-to-electrolyte
prevent or interfere in any way with
potential measurements taken annu-
the management, administration, or
ally on DOI pipelines in accordance
the granting of other rights by the
with § 250.1005(b) of this part shall be
United States, either prior or subse-
submitted to the Regional Supervisor
quent to the granting of the right-of-
by the lessee before March of each
way. Moreover, the holder agrees to
year.
allow the occupancy and use by the
§ 250.1009 Requirements to obtain United States, its lessees, or other
pipeline right-of-way grants. right-of-way holders, of any part of the
(a) In addition to applicable require- right-of-way grant not actually occu-
ments of §§ 250.1000 through 250.1008 and pied or necessarily incident to its use
other regulations of this part, regula- for any necessary operations involved
tions of the Department of Transpor- in the management, administration, or
tation, Department of the Army, and the enjoyment of such other granted
the Federal Energy Regulatory Com- rights.
mission (FERC), when a pipeline quali- (c) If the right-of-way holder dis-
fies as a right-of-way pipeline, the covers any archaeological resource
pipeline shall not be installed until a while conducting operations within the
right-of-way has been requested and right-of-way, the right-of-way holder
granted in accordance with this sub- shall immediately halt operations
part. The right-of-way grant is issued within the area of the discovery and re-
pursuant to 43 U.S.C. 1334(e) and may port the discovery to the Regional Di-
be acquired and held only by citizens rector. If investigations determine that
and nationals of the United States; the resource is significant, the Re-
aliens lawfully admitted for permanent gional Director will inform the right-
residence in the United States as de- of-way holder how to protect it.
fined in 8 U.S.C. 1101(a)(20); private, (d) The Regional Supervisor shall be
public, or municipal corporations orga- kept informed at all times of the right-
nized under the laws of the United of-way holder’s address and, if a cor-
States or territory thereof, the District poration, the address of its principal
of Columbia, or of any State; or asso- place of business and the name and ad-
ciations of such citizens, nationals, dress of the officer or agent authorized
resident aliens, or private, public, or to be served with process.
municipal corporations, States, or po- (e) The right-of-way holder shall pay
litical subdivisions of States. the United States or its lessees or
(b) A right-of-way shall include the right-of-way holders, as the case may
site on which the pipeline and associ- be, the full value of all damages to the
ated structures are to be situated, shall property of the United States or its
not exceed 200 feet in width unless safe- said lessees or right-of-way holders and
ty and environmental factors during shall indemnify the United States

construction and operation of the asso- against any and all liability for dam-
ciated right-of-way pipeline require a ages to life, person, or property arising
214
from the occupation and use of the the right-of-way holder shall remove
area covered by the right-of-way grant. all platforms, structures, domes over
(f)(1) The holder of a right-of-way oil valves, pipes, taps, and valves along
or gas pipeline shall transport or pur- the right-of-way. All of these improve-
chase oil or natural gas produced from ments shall be removed by the holder
submerged lands in the vicinity of the within 1 year of the effective date of
pipeline without discrimination and in the relinquishment, forfeiture, or can-
such proportionate amounts as the cellation unless this requirement is
FERC may, after a full hearing with waived in writing by the Regional Su-
due notice thereof to the interested pervisor. All such improvements not
parties, determine to be reasonable, removed within the time provided
taking into account, among other herein shall become the property of the
things, conservation and the preven- United States but that shall not relieve
tion of waste. the holder of liability for the cost of
(2) Unless otherwise exempted by their removal or for restoration of the
FERC pursuant to 43 U.S.C. 1334(f)(2), site. Furthermore, the holder is respon-
the holder shall: sible for accidents or damages which
(i) Provide open and nondiscrim- might occur as a result of failure to
inatory access to a right-of-way pipe- timely remove improvements and
line to both owner and nonowner ship- equipment and restore a site. An appli-
pers, and cation for relinquishment of a right-of-
(ii) Comply with the provisions of 43 way grant shall be filed in accordance
U.S.C. 1334(f)(1)(B) under which FERC with § 250.1019 of this part.
may order an expansion of the through-
put capacity of a right-of-way pipeline § 250.1011 [Reserved]
which is approved after September 18,
1978, and which is not located in the § 250.1012 Required payments for pipe-
Gulf of Mexico or the Santa Barbara line right-of-way holders.
Channel. (a) You must pay ONRR, under the
(g) The area covered by a right-of- regulations at 30 CFR part 1218, an an-
way and all improvements thereon nual rental of $15 for each statute mile,
shall be kept open at all reasonable or part of a statute mile, of the OCS
times for inspection by the Bureau of that your pipeline right-of-way crosses.
Safety and Environmental Enforce- (b) This paragraph applies to you if
ment (BSEE). The right-of-way holder you obtain a pipeline right-of-way that
shall make available all records rel- includes a site for an accessory to the
ative to the design, construction, oper- pipeline, including but not limited to a
ation, maintenance and repair, and in- platform. This paragraph also applies if
vestigations on or with regard to such you apply to modify a right-of-way to
area. change the site footprint. In either
(h) Upon relinquishment, forfeiture, case, you must pay the amounts shown
or cancellation of a right-of-way grant, in the following table.
If . . . Then . . .
(1) Your accessory site is located in water You must pay ONRR, under the regulations at 30 CFR part 1218, a rental of $5
depths of less than 200 meters; per acre per year with a minimum of $450 per year. The area subject to annual
rental includes the areal extent of anchor chains, pipeline risers, and other facili-
ties and devices associated with the accessory.
(2) Your accessory site is located in water You must pay ONRR, under the regulations at 30 CFR part 1218, a rental of $7.50
depths of 200 meters or greater; per acre per year with a minimum of $675 per year. The area subject to annual
rental includes the areal extent of anchor chains, pipeline risers, and other facili-
ties and devices associated with the accessory.
(c) If you hold a pipeline right-of-way rental of $75 for use of the affected
that includes a site for an accessory to area.
your pipeline and you are not covered (d) You may make the rental pay-
by paragraph (b) of this section, then ments required by paragraphs (a),

you must pay ONRR, under the regula- (b)(1), (b)(2), and (c) of this section on
tions at 30 CFR part 1218, an annual an annual basis, for a 5-year period, or
215
§ 250.1013 30 CFR Ch. II (7–1–18 Edition)
for multiples of 5 years. You must plication must state the date such use
make the first payment at the time began, by whom, and the date the ap-
you submit the pipeline right-of-way plicant obtained control of the im-
application. You must make all subse- provement. When you file your applica-
quent payments before the respective tion, you must pay the rental required
time periods begin. under § 250.1012 of this subpart, as well
(e) Late payments. An interest charge as the service fees listed in § 250.125 of
will be assessed on unpaid and under- this part for a pipeline ROW grant to
paid amounts from the date the install a new pipeline, or to convert an
amounts are due, in accordance with existing lease term pipeline into a
the provisions found in 30 CFR 1218.54. ROW pipeline. An application to mod-
If you fail to make a payment that is ify an approved ROW grant must be ac-
late after written notice from ONRR, companied by the additional rental re-
BSEE may initiate cancellation of the quired under § 250.1012 if applicable.
right-of-use grant and easement under You must file a separate application
§ 250.1013. for each ROW.
(b)(1) An individual applicant shall
§ 250.1013 Grounds for forfeiture of submit a statement of citizenship or
pipeline right-of-way grants. nationality with the application. An
Failure to comply with the Act, regu- applicant who is an alien lawfully ad-
lations, or any conditions of the right- mitted for permanent residence in the
of-way grant prescribed by the Re- United States shall also submit evi-
gional Supervisor shall be grounds for dence of such status with the applica-
forfeiture of the grant in an appro- tion.
priate judicial proceeding instituted by (2) If the applicant is an association
the United States in any U.S. District (including a partnership), the applica-
Court having jurisdiction in accord- tion shall also be accompanied by a
ance with the provisions of 43 U.S.C. certified copy of the articles of associa-
1349. tion or appropriate reference to a copy
of such articles already filed with
§ 250.1014 When pipeline right-of-way BSEE and a statement as to any subse-
grants expire. quent amendments.
Any right-of-way granted under the (3) If the applicant is a corporation,
provisions of this subpart remains in the application shall also include the
effect as long as the associated pipeline following:
is properly maintained and used for the (i) A statement certified by the Sec-
purpose for which the grant was made, retary or Assistant Secretary of the
unless otherwise expressly stated in corporation with the corporate seal
the grant. Temporary cessation or sus- showing the State in which it is incor-
pension of pipeline operations shall not porated and the name of the person(s)
cause the grant to expire. However, if authorized to act on behalf of the cor-
the purpose of the grant ceases to exist poration, or
or use of the associated pipeline is per- (ii) In lieu of such a statement, an
manently discontinued for any reason, appropriate reference to statements or
the grant shall be deemed to have ex- records previously submitted to BSEE
pired. (including material submitted in com-
pliance with prior regulations).
§ 250.1015 Applications for pipeline (c) The application shall include a
right-of-way grants. list of every lessee and right-of-way
(a) You must submit an original and holder whose lease or right-of-way is
three copies of an application for a new intersected by the proposed right-of-
or modified pipeline ROW grant to the way. The application shall also include
Regional Supervisor. The application a statement that a copy of the applica-
must address those items required by tion has been sent by registered or cer-
§ 250.1007(a) or (b) of this subpart, as ap- tified mail to each such lessee or right-
plicable. It must also state the primary of-way holder.
purpose for which you will use the (d) The applicant shall include in the
ROW grant. If the ROW has been used application an original and three cop-
before the application is made, the ap- ies of a completed Nondiscrimination
216
in Employment form (YN 3341–1 dated plication until the Regional Supervisor
July 1982). These forms are available at is satisfied that each such lessee or
each BSEE regional office. right-of-way holder has been afforded
[76 FR 64462, Oct. 18, 2011, as amended at 81 at least 30 days from the date deter-
FR 36150, June 6, 2016] mined in paragraph (c)(1) of this sec-
tion in which to submit comments.
§ 250.1016 Granting pipeline rights-of- (d) If a proposed right-of-way crosses
way. any lands not subject to disposition by
(a) In considering an application for a mineral leasing or restricted from oil
right-of-way, the Regional Supervisor and gas activities, it shall be rejected
shall consider the potential effect of by the Regional Supervisor unless the
the associated pipeline on the human, Federal Agency with jurisdiction over
marine, and coastal environments, life such excluded or restricted area gives
(including aquatic life), property, and its consent to the granting of the
mineral resources in the entire area right-of-way. In such case, the appli-
during construction and operational cant, upon a request filed within 30
phases. The Regional Supervisor shall days after receipt of the notification of
prepare an environmental analysis in such rejection, shall be allowed an op-
accordance with applicable policies and portunity to eliminate the conflict.
guidelines. To aid in the evaluation (e)(1) If the application and other re-
and determinations, the Regional Su- quired information are found to be in
pervisor may request and consider compliance with applicable laws and
views and recommendations of appro- regulations, the right-of-way may be
priate Federal Agencies, hold public granted. The Regional Supervisor may
meetings after appropriate notice, and prescribe, as conditions to the right-of-
consult, as appropriate, with State way grant, stipulations necessary to
agencies, organizations, industries, and protect human, marine, and coastal en-
individuals. Before granting a pipeline vironments, life (including aquatic
right-of-way, the Regional Supervisor life), property, and mineral resources
shall give consideration to any rec- located on or adjacent to the right-of-
ommendation by the intergovern- way.
mental planning program, or similar
(2) If the Regional Supervisor deter-
process, for the assessment and man-
mines that a change in the application
agement of OCS oil and gas transpor-
should be made, the Regional Super-
tation.
(b) Should the proposed route of a visor shall notify the applicant that an
right-of-way adjoin and subsequently amended application shall be filed sub-
cross any State submerged lands, the ject to stipulated changes. The Re-
applicant shall submit evidence to the gional Supervisor shall determine
Regional Supervisor that the State(s) whether the applicant shall deliver
so affected has reviewed the applica- copies of the amended application to
tion. The applicant shall also submit other parties for comment.
any comment received as a result of (3) A decision to reject an application
that review. In the event of a State shall be in writing and shall state the
recommendation to relocate the pro- reasons for the rejection.
posed route, the Regional Supervisor
may consult with the appropriate § 250.1017 Requirements for construc-
tion under pipeline right-of-way
State officials. grants.
(c)(1) The applicant shall submit pho-
tocopies of return receipts to the Re- (a) Failure to construct the associ-
gional Supervisor that indicate the ated right-of-way pipeline within 5
date that each lessee or right-of-way years of the date of the granting of a
holder referenced in § 250.1015(c) of this right-of-way shall cause the grant to
part has received a copy of the applica- expire.
tion. Letters of no objection may be (b)(1) A right-of-way holder shall en-
submitted in lieu of the return re- sure that the right-of-way pipeline is
ceipts. constructed in a manner that mini-

(2) The Regional Supervisor shall not mizes deviations from the right-of-way
take final action on a right-of-way ap- as granted.
217
§ 250.1018 30 CFR Ch. II (7–1–18 Edition)
(2) If, after constructing the right-of- part and must be supported by a state-
way pipeline, it is determined that a ment that the assignee agrees to com-
deviation from the proposed right-of- ply with and to be bound by the terms
way as granted has occurred, the right- and conditions of the ROW grant. The
of-way holder shall— assignee must satisfy the bonding re-
(i) Notify the operators of all leases quirements in 30 CFR 550.1011. No
and holders of all right-of-way grants transfer will be recognized unless and
in which a deviation has occurred, and until it is first approved, in writing, by
within 60 days of the date of the ac- the Regional Supervisor. The assignee
ceptance by the Regional Supervisor of must pay the service fee listed in
the completion of pipeline construction § 250.125 of this part for a pipeline ROW
report, provide the Regional Supervisor assignment request.
with evidence of such notification; and
(ii) Relinquish any unused portion of [76 FR 64462, Oct. 18, 2011, as amended at 81
FR 36150, June 6, 2016]
the right-of-way.
(3) Substantial deviation of a right- § 250.1019 Relinquishment of pipeline
of-way pipeline as constructed from the right-of-way grants.
proposed right-of-way as granted may
be grounds for forfeiture of the right- A right-of-way grant or a portion
of-way. thereof may be surrendered by the
(c) If the Regional Supervisor deter- holder by filing a written relinquish-
mines that a significant change in con- ment in triplicate with the Regional
ditions has occurred subsequent to the Supervisor. It must contain those
granting of a right-of-way but prior to items addressed in §§ 250.1751 and
the commencement of construction of 250.1752 of this part. A relinquishment
the associated pipeline, the Regional shall take effect on the date it is filed
Supervisor may suspend or temporarily subject to the satisfaction of all out-
prohibit the commencement of con- standing debts, fees, or fines and the
struction until the right-of-way grant requirements in § 250.1010(h) of this
is modified to the extent necessary to part.
address the changed conditions.
Subpart K—Oil and Gas
§ 250.1018 Assignment of pipeline Production Requirements
right-of-way grants.
(a) Assignment may be made of a GENERAL
right-of-way grant, in whole or of any
lineal segment thereof, subject to the § 250.1150 What are the general res-
approval of the Regional Supervisor. ervoir production requirements?
An application for approval of an as- You must produce wells and res-
signment of a right-of-way or of a lin- ervoirs at rates that provide for eco-
eal segment thereof, shall be filed in nomic development while maximizing
triplicate with the Regional Super- ultimate recovery and without ad-
visor. versely affecting correlative rights.
(b) Any application for approval for
an assignment, in whole or in part, of WELL TESTS AND SURVEYS
any right, title, or interest in a right-
of-way grant must be accompanied by § 250.1151 How often must I conduct
the same showing of qualifications of well production tests?
the assignees as is required of an appli- (a) You must conduct well production
cant for a ROW in § 250.1015 of this sub- tests as shown in the following table:
You must conduct: And you must submit to the Regional Supervisor:
(1) A well-flow potential test on all new, recompleted, or re- Form BSEE–0126, Well Potential Test Report, along with the
worked well completions within 30 days of the date of first supporting data as listed in the table in § 250.1167, within 15
continuous production, days after the end of the test period.
(2) At least one well test during a calendar half-year for each Results on Form BSEE–0128, Semiannual Well Test Report,
producing completion, of the most recent well test obtained. This must be sub-
mitted within 45 days after the end of the calendar half-year.
218
(b) You may request an extension gional Supervisor of the times and
from the Regional Supervisor if you dates of well tests.
cannot submit the results of a semi-
annual well test within the specified §§ 250.1153–250.1155 [Reserved]
time.
(c) You must submit to the Regional APPROVALS PRIOR TO PRODUCTION
Supervisor an original and two copies
of the appropriate form required by § 250.1156 What steps must I take to
receive approval to produce within
paragraph (a) of this section; one of the 500 feet of a unit or lease line?
copies of the form must be a public in-
formation copy in accordance with (a) You must obtain approval from
§§ 250.186 and 250.197, and marked ‘‘Pub- the Regional Supervisor before you
lic Information.’’ You must submit two start producing from a reservoir within
copies of the supporting information as a well that has any portion of the com-
listed in the table in § 250.1167 with pleted interval less than 500 feet from a
form BSEE–0126. unit or lease line. Submit to BSEE the
service fee listed in § 250.125, according
§ 250.1152 How do I conduct well tests? to the instructions in § 250.126, and the
(a) When you conduct well tests you supporting information, as listed in the
must: table in § 250.1167, with your request.
(1) Recover fluid from the well com- The Regional Supervisor will deter-
pletion equivalent to the amount of mine whether approval of your request
fluid introduced into the formation will maximize ultimate recovery, avoid
during completion, recompletion, re- the waste of natural resources, or pro-
working, or treatment operations be- tect correlative rights. You do not need
fore you start a well test; to obtain approval if the adjacent
(2) Produce the well completion leases or units have the same unit,
under stabilized rate conditions for at lease (record title and operating
least 6 consecutive hours before begin- rights), and royalty interests as the
ning the test period; lease or unit you plan to produce. You
(3) Conduct the test for at least 4 do not need to obtain approval if the
consecutive hours; adjacent block is unleased.
(4) Adjust measured gas volumes to (b) You must notify the operator(s) of
the standard conditions of 14.73 pounds adjacent property(ies) that are within
per square inch absolute (psia) and 60 500 feet of the completion, if the adja-
°F for all tests; and cent acreage is a leased block in the
(5) Use measured specific gravity val- Federal OCS. You must provide the Re-
ues to calculate gas volumes. gional Supervisor proof of the date of
(b) You may request approval from the notification. The operators of the
the Regional Supervisor to conduct a adjacent properties have 30 days after
well test using alternative procedures receiving the notification to provide
if you can demonstrate test reliability the Regional Supervisor letters of ac-
under those procedures. ceptance or objection. If an adjacent
(c) The Regional Supervisor may also operator does not respond within 30
require you to conduct the following days, the Regional Supervisor will pre-
tests and complete them within a spec- sume there are no objections and pro-
ified time period: ceed with a decision. The notification
(1) A retest or a prolonged test of a must include:
well completion if it is determined to (1) The well name;
be necessary for the proper establish- (2) The rectangular coordinates (x, y)
ment of a Maximum Production Rate of the location of the top and bottom of
(MPR) or a Maximum Efficient Rate the completion or target completion
(MER); and referenced to the North American
(2) A multipoint back-pressure test Datum 1983, and the subsea depths of
to determine the theoretical open-flow the top and bottom of the completion
potential of a gas well. or target completion;
(d) A BSEE representative may wit- (3) The distance from the completion
ness any well test. Upon request, you or target completion to the unit or
must provide advance notice to the Re- lease line at its nearest point; and
219
§ 250.1157 30 CFR Ch. II (7–1–18 Edition)
(4) A statement indicating whether reservoir that you intend to downhole

or not it will be a high-capacity com- commingle the reservoirs. Your request
pletion having a perforated or open for approval of downhole commingling
hole interval greater than 150 feet must include proof of the date of this
measured depth. notification. The notified operators
have 30 days after notification to pro-
§ 250.1157 How do I receive approval vide the Regional Supervisor with let-
to produce gas-cap gas from an oil ters of acceptance or objection. If the
reservoir with an associated gas
cap? notified operators do not respond with-
in the specified period, the Regional
(a) You must request and receive ap- Supervisor will assume the operators
proval from the Regional Supervisor: do not object and proceed with a deci-
(1) Before producing gas-cap gas from sion.
each completion in an oil reservoir
that is known to have an associated PRODUCTION RATES
gas cap.
(2) To continue production from a § 250.1159 May the Regional Super-
well if the oil reservoir is not initially visor limit my well or reservoir pro-
known to have an associated gas cap, duction rates?
but the oil well begins to show charac- (a) The Regional Supervisor may set
teristics of a gas well. a Maximum Production Rate (MPR) for
(b) For either request, you must sub- a producing well completion, or set a
mit the service fee listed in § 250.125, Maximum Efficient Rate (MER) for a
according to the instructions in
reservoir, or both, if the Regional Su-
§ 250.126, and the supporting informa-
pervisor determines that an excessive
tion, as listed in the table in § 250.1167,
production rate could harm ultimate
with your request.
recovery. An MPR or MER will be
(c) The Regional Supervisor will de-
based on well tests and any limitations
termine whether your request maxi-
imposed by well and surface equip-
mizes ultimate recovery.
ment, sand production, reservoir sensi-
§ 250.1158 How do I receive approval tivity, gas-oil and water-oil ratios, lo-
to downhole commingle hydro- cation of perforated intervals, and pru-
carbons? dent operating practices.
(a) Before you perforate a well, you (b) If the Regional Supervisor sets an
must request and receive approval from MPR for a producing well completion
the Regional Supervisor to commingle and/or an MER for a reservoir, you may
hydrocarbons produced from multiple not exceed those rates except due to
reservoirs within a common wellbore. normal variations and fluctuations in
The Regional Supervisor will deter- production rates as set by the Regional
mine whether your request maximizes Supervisor.
ultimate recovery. You must include
the service fee listed in § 250.125, ac- FLARING, VENTING, AND BURNING
cording to the instructions in § 250.126, HYDROCARBONS
and the supporting information, as list-
ed in the table in § 250.1167, with your § 250.1160 When may I flare or vent
request. gas?
(b) If one or more of the reservoirs (a) You must request and receive ap-
proposed for commingling is a competi- proval from the Regional Supervisor to
tive reservoir, you must notify the op- flare or vent natural gas at your facil-
erators of all leases that contain the ity, except in the following situations:
Condition Additional requirements
(1) When the gas is lease use gas (produced natural gas The volume of gas flared or vented may not exceed the
which is used on or for the benefit of lease operations such amount necessary for its intended purpose. Burning waste
as gas used to operate production facilities) or is used as an products may require approval under other regulations.
additive necessary to burn waste products, such as H2S.
(2) During the restart of a facility that was shut in because of Flaring or venting may not exceed 48 cumulative hours without
weather conditions, such as a hurricane. Regional Supervisor approval.
220
Condition Additional requirements
(3) During the blow down of transportation pipelines down- (i) You must report the location, time, flare/vent volume, and
stream of the royalty meter. reason for flaring/venting to the Regional Supervisor in writ-
ing within 72 hours after the incident is over.
(ii) Additional approval may be required under subparts H and
J of this part.
(4) During the unloading or cleaning of a well, drill-stem test- You may not exceed 48 cumulative hours of flaring or venting
ing, production testing, other well-evaluation testing, or the per unloading or cleaning or testing operation on a single
necessary blow down to perform these procedures. completion without Regional Supervisor approval.
(5) When properly working equipment yields flash gas (natural You may not flare or vent more than an average of 50 MCF
gas released from liquid hydrocarbons as a result of a de- per day during any calendar month without Regional Super-
crease in pressure, an increase in temperature, or both) from visor approval.
storage vessels or other low-pressure production vessels,
and you cannot economically recover this flash gas.
(6) When the equipment works properly but there is a tem- (i) For oil-well gas and gas-well flash gas (natural gas released
porary upset condition, such as a hydrate or paraffin plug. from condensate as a result of a decrease in pressure, an
increase in temperature, or both), you may not exceed 48
continuous hours of flaring or venting without Regional Su-
pervisor approval.
(ii) For primary gas-well gas (natural gas from a gas well com-
pletion that is at or near its wellhead pressure; this does not
include flash gas), you may not exceed 2 continuous hours
of flaring or venting without Regional Supervisor approval.
(iii) You may not exceed 144 cumulative hours of flaring or
venting during a calendar month without Regional Supervisor
approval.
(7) When equipment fails to work properly, during equipment (i) For oil-well gas and gas-well flash gas, you may not exceed
maintenance and repair, or when you must relieve system 48 continuous hours of flaring or venting without Regional
pressures. Supervisor approval.
(ii) For primary gas-well gas, you may not exceed 2 continuous
hours of flaring or venting without Regional Supervisor ap-
proval.
(iii) You may not exceed 144 cumulative hours of flaring or
venting during a calendar month without Regional Supervisor
approval.
(iv) The continuous and cumulative hours allowed under this
paragraph may be counted separately from the hours under
paragraph (a)(6) of this section.
(b) Regardless of the requirements in or liquid hydrocarbons avoidably lost

paragraph (a) of this section, you must or wasted under the provisions of 30
not flare or vent gas over the volume CFR part 1206.
approved in your Development Oper- (f) Fugitive emissions from valves,
ations Coordination Document (DOCD) fittings, flanges, pressure relief valves
or your Development and Production or similar components do not require
Plan (DPP) submitted to BOEM. approval under this subpart unless spe-
(c) The Regional Supervisor may es- cifically required by the Regional Su-
tablish alternative approval procedures pervisor.
to cover situations when you cannot
contact the BSEE office, such as dur- § 250.1161 When may I flare or vent
ing non-office hours. gas for extended periods of time?
(d) The Regional Supervisor may You must request and receive ap-
specify a volume limit, or a shorter proval from the Regional Supervisor to
time limit than specified elsewhere in flare or vent gas for an extended period
this part, in order to prevent air qual- of time. The Regional Supervisor will
ity degradation or loss of reserves. specify the approved period of time,
(e) If you flare or vent gas without which will not exceed 1 year. The Re-
the required approval, or if the Re- gional Supervisor may deny your re-
gional Supervisor determines that you quest if it does not ensure the con-
were negligent or could have avoided servation of natural resources or is not
flaring or venting the gas, the hydro- consistent with National interests re-
carbons will be considered avoidably lating to development and production
lost or wasted. You must pay royalties of minerals of the OCS. The Regional
on the loss or waste, according to 30 Supervisor may approve your request
CFR part 1202. You must value any gas for one of the following reasons:
221
§ 250.1162 30 CFR Ch. II (7–1–18 Edition)
(a) You initiated an action which, (3) You must calibrate the meters
when completed, will eliminate flaring regularly, in accordance with the man-
and venting; or ufacturer’s recommendation, or at
(b) You submit to the Regional Su- least once every year, whichever is
pervisor an evaluation supported by en- shorter; and
gineering, geologic, and economic data (4) You must use and maintain the
indicating that the oil and gas pro- flare/vent meters for the life of the fa-
duced from the well(s) will not eco- cility.
nomically support the facilities nec- (b) You must report all hydrocarbons
essary to sell the gas or to use the gas produced from a well completion, in-
on or for the benefit of the lease. cluding all gas flared, gas vented, and
liquid hydrocarbons burned, to Office
§ 250.1162 When may I burn produced of Natural Resources Revenue on Form
liquid hydrocarbons?
ONRR–4054 (Oil and Gas Operations Re-
(a) You must request and receive ap- port), in accordance with 30 CFR
proval from the Regional Supervisor to 1210.102.
burn any produced liquid hydro- (1) You must report the amount of
carbons. The Regional Supervisor may gas flared and the amount of gas vent-
allow you to burn liquid hydrocarbons ed separately.
if you demonstrate that transporting (2) You may classify and report gas
them to market or re-injecting them is used to operate equipment on the lease,
not technically feasible or poses a sig- such as gas used to power engines, in-
nificant risk of harm to offshore per- strument gas, and gas used to maintain
sonnel or the environment. pilot lights, as lease use gas.
(b) If you burn liquid hydrocarbons (3) If flare/vent meters are required
without the required approval, or if the at one or more of your facilities, you
Regional Supervisor determines that must report the amount of gas flared
you were negligent or could have and vented at each of those facilities
avoided burning liquid hydrocarbons, separately from those facilities that do
the hydrocarbons will be considered not require meters and separately from
avoidably lost or wasted. You must pay other facilities with meters.
royalties on the loss or waste, accord- (4) If flare/vent meters are not re-
ing to 30 CFR part 1202. You must value quired at your facility:
any liquid hydrocarbons avoidably lost
(i) You may report the gas flared and
or wasted under the provisions of 30
vented on a lease or unit basis. Gas
CFR part 1206.
flared and vented from multiple facili-
§ 250.1163 How must I measure gas ties on a single lease or unit may be re-
flaring or venting volumes and liq- ported together.
uid hydrocarbon burning volumes, (ii) If you choose to install meters,
and what records must I maintain? you may report the gas volume flared
(a) If your facility processes more and vented according to the method
than an average of 2,000 bopd during specified in paragraph (b)(3) of this sec-
May 2010, you must install flare/vent tion.
meters within 180 days after May 2010. (c) You must prepare and maintain
If your facility processes more than an records detailing gas flaring, gas vent-
average of 2,000 bopd during a calendar ing, and liquid hydrocarbon burning for
month after May 2010, you must install each facility for 6 years.
flare/vent meters within 120 days after (1) You must maintain these records
the end of the month in which the av- on the facility for at least the first 2
erage amount of oil processed exceeds years and have them available for in-
2,000 bopd. spection by BSEE representatives.
(1) You must notify the Regional Su- (2) After 2 years, you must maintain
pervisor when your facility begins to the records, allow BSEE representa-
process more than an average of 2,000 tives to inspect the records upon re-
bopd in a calendar month; quest and provide copies to the Re-
(2) The flare/vent meters must meas- gional Supervisor upon request, but are
ure all flared and vented gas within 5 not required to keep them on the facil-
percent accuracy; ity.
222
(3) The records must include, at a centration of H2S of 20 ppm or higher

minimum: anywhere on the platform.
(i) Daily volumes of gas flared, gas (b) You may flare gas containing H2S
vented, and liquid hydrocarbons only if you meet the requirements of
burned; §§ 250.1160, 250.1161, 250.1163, and the fol-
(ii) Number of hours of gas flaring, lowing additional requirements:
gas venting, and liquid hydrocarbon (1) For safety or air pollution preven-
burning, on a daily and monthly cumu- tion purposes, the Regional Supervisor
lative basis; may further restrict the flaring of gas
(iii) A list of the wells contributing containing H2S. The Regional Super-
to gas flaring, gas venting, and liquid visor will use information provided in
hydrocarbon burning, along with gas- the lessee’s H2S Contingency Plan
oil ratio data; (§ 250.490(f)), Exploration Plan, DPP,
(iv) Reasons for gas flaring, gas vent- DOCD submitted to BOEM, and associ-
ing, and liquid hydrocarbon burning; ated documents to determine the need
and for restrictions; and
(v) Documentation of all required ap- (2) If the Regional Supervisor deter-
provals. mines that flaring at a facility or
(d) If your facility is required to have group of facilities may significantly af-
flare/vent meters: fect the air quality of an onshore area,
the Regional Supervisor may require
(1) You must maintain the meter re-
you to conduct an air quality modeling
cordings for 6 years.
analysis, under 30 CFR 550.303, to deter-
(i) You must keep these recordings mine the potential effect of facility
on the facility for 2 years and have emissions. The Regional Supervisor
them available for inspection by BSEE may require monitoring and reporting,
representatives. or may restrict or prohibit flaring,
(ii) After 2 years, you must maintain under 30 CFR 550.303 and 30 CFR 550.304.
the recordings, allow BSEE representa- (c) The Regional Supervisor may re-
tives to inspect the recordings upon require you to submit monthly reports of
quest and provide copies to the Re- flared and vented gas containing H2S.
gional Supervisor upon request, but are Each report must contain, on a daily
not required to keep them on the facil- basis:
ity. (1) The volume and duration of each
(iii) These recordings must include flaring and venting occurrence;
the begin times, end times, and vol- (2) H2S concentration in the flared or
umes for all flaring and venting inci- vented gas; and
dents. (3) The calculated amount of SO2
(2) You must maintain flare/vent emitted.
meter calibration and maintenance
records on the facility for 2 years. OTHER REQUIREMENTS
(e) If your flaring or venting of gas,
or burning of liquid hydrocarbons, re- § 250.1165 What must I do for en-
quired written or oral approval, you hanced recovery operations?
must submit documentation to the Re- (a) You must promptly initiate en-
gional Supervisor summarizing the lo- hanced oil and gas recovery operations
cation, dates, number of hours, and for all reservoirs where these oper-
volumes of gas flared, gas vented, and ations would result in an increase in
liquid hydrocarbons burned under the ultimate recovery of oil or gas under
approval. sound engineering and economic prin-
ciples.
§ 250.1164 What are the requirements (b) Before initiating enhanced recov-
for flaring or venting gas con- ery operations, you must submit a pro-
taining H 2S? posed plan to the BSEE Regional Su-
(a) You may not vent gas containing pervisor and receive approval for pres-
H2S, except for minor releases during sure maintenance, secondary or ter-
maintenance and repair activities that tiary recovery, cycling, and similar re-
do not result in a 15-minute time- covery operations intended to increase
weighted average atmosphere con- the ultimate recovery of oil and gas
223
§ 250.1166 30 CFR Ch. II (7–1–18 Edition)
from a reservoir. The proposed plan vious year and planned for the upcom-
must include, for each project res- ing year that will:
ervoir, a geologic and engineering over- (1) Provide for the prevention of
view and any additional information waste;
required by the BSEE Regional Super- (2) Provide for the protection of cor-
visor. You also must submit Form relative rights; and
BOEM–0127 to BOEM along with the (3) Maximize ultimate recovery of oil
supporting data specified in BOEM reg- and gas.
ulations, 30 CFR part 550, subpart K. (b) If your development is jointly reg-
(c) You must report to Office of Nat- ulated by BSEE and the State of Alas-
ural Resources Revenue the volumes of ka, BSEE and the Alaska Oil and Gas
oil, gas, or other substances injected, Conservation Commission will jointly
produced, or produced for a second determine appropriate reporting re-
time under 30 CFR 1210.102. quirements to minimize or eliminate
[76 FR 64462, Oct. 18, 2011, as amended at 81 duplicate reporting requirements.
FR 36150, June 6, 2016] (c) [Reserved]
§ 250.1166 What additional reporting is § 250.1167 What information must I

required for developments in the submit with forms and for approv-
Alaska OCS Region? als?
(a) For any development in the Alas- You must submit the supporting in-
ka OCS Region, you must submit an formation listed in the following table
annual reservoir management report to with the form identified in column 1
the Regional Supervisor. The report and for the approvals required under
must contain information detailing the this subpart identified in columns 2
activities performed during the pre- through 4:
Production
WPT BSEE– Gas cap pro- Downhole within 500-ft of
0126 duction commingling a unit or lease
(2 copies) line
(a) Maps:
(1) Base map with surface, bottomhole, and com-
pletion locations with respect to the unit or lease
line and the orientation of representative seis-
mic lines or cross-sections .................................. ........................ ✔ ✔ ✔
(2) Structure maps with penetration point and
subsea depth for each well penetrating the res-
ervoirs, highlighting subject wells; reservoir
boundaries; and original and current fluid levels ✔ ✔ ✔ ✔
(3) Net sand isopach with total net sand pene-
trated for each well, identified at the penetration
point ..................................................................... ........................ ✔ ✔
(4) Net hydrocarbon isopach with net feet of pay
for each well, identified at the penetration point ........................ ✔ ✔
(b) Seismic data:
(1) Representative seismic lines, including strike
and dip lines that confirm the structure; indicate
polarity ................................................................. ........................ ✔ ✔ ✔
(2) Amplitude extraction of seismic horizon, if ap-
plicable ................................................................ ........................ ✔ ✔ ✔
(c) Logs:
(1) Well log sections with tops and bottoms of the
reservoir(s) and proposed or existing perfora-
tions ..................................................................... ✔ ✔ ✔ ✔
(2) Structural cross-sections showing the subject
well and nearby wells .......................................... ........................ ✔ ✔ *
(d) Engineering data:
(1) Estimated recoverable reserves for each well
completion in the reservoir; total recoverable re-
serves for each reservoir; method of calculation;
reservoir parameters used in volumetric and de-
cline curve analysis ............................................. ........................ † † ✔
(2) Well schematics showing current and pro-
posed conditions ................................................. ........................ ✔ ✔ ✔

(3) The drive mechanism of each reservoir ........... ........................ ✔ ✔ ✔
(4) Pressure data, by date, and whether they are
estimated or measured ....................................... ........................ ✔ ✔
224
Production
WPT BSEE– Gas cap pro- Downhole within 500-ft of
0126 duction commingling a unit or lease
(2 copies) line
(5) Production data and decline curve analysis in-

dicative of the reservoir performance ................. ........................ ✔ ✔
(6) Reservoir simulation with the reservoir param-
eters used, history matches, and prediction runs
(include proposed development scenario) .......... ........................ * * *
(e) General information:
(1) Detailed economic analysis .............................. ........................ * *
(2) Reservoir name and whether or not it is com-
petitive as defined under § 250.105 .................... ........................ ✔ ✔ ✔
(3) Operator name, lessee name(s), block, lease
number, royalty rate, and unit number (if appli-
cable) of all relevant leases ................................ ........................ ✔ ✔ ✔
(4) Geologic overview of project ............................. ........................ ✔ ✔ ✔
(5) Explanation of why the proposed completion
scenario will maximize ultimate recovery ........... ........................ ✔ ✔ ✔
(6) List of all wells in subject reservoirs that have
ever produced or been used for injection ........... ........................ ✔ ✔ ✔
✔ Required.
† Each Gas Cap Production request and Downhole Commingling request must include the estimated recoverable reserves for
(1) the case where your proposed production scenario is approved, and (2) the case where your proposed production scenario is
denied.
* Additional items the Regional Supervisor may request.
Note: All maps must be at a standard scale and show lease and unit lines. The Regional Supervisor may waive submittal of
some of the required data on a case-by-case basis.
(f) Depending on the type of approval Subpart L—Oil and Gas Produc-
requested, you must submit the appro- tion Measurement, Surface
priate payment of the service fee(s) Commingling, and Security
listed in § 250.125, according to the in-
structions in § 250.126. § 250.1200 Question index table.
The table in this section lists ques-
tions concerning Oil and Gas Produc-
tion Measurement, Surface Commin-
gling, and Security.
Frequently asked questions CFR citation
1. What are the requirements for measuring liquid hydrocarbons? § 250.1202(a)

2. What are the requirements for liquid hydrocarbon royalty meters? § 250.1202(b)
3. What are the requirements for run tickets? § 250.1202(c)
4. What are the requirements for liquid hydrocarbon royalty meter provings? § 250.1202(d)
5. What are the requirements for calibrating a master meter used in royalty meter provings? § 250.1202(e)
6. What are the requirements for calibrating mechanical-displacement provers and tank provers? § 250.1202(f)
7. What correction factors must a lessee use when proving meters with a mechanical displacement § 250.1202(g)
prover, tank prover, or master meter?
8. What are the requirements for establishing and applying operating meter factors for liquid hydro- § 250.1202(h)
carbons?
9. Under what circumstances does a liquid hydrocarbon royalty meter need to be taken out of service, § 250.1202(i)
and what must a lessee do?
10. How must a lessee correct gross liquid hydrocarbon volumes to standard conditions? § 250.1202(j)
11. What are the requirements for liquid hydrocarbon allocation meters? § 250.1202(k)
12. What are the requirements for royalty and inventory tank facilities? § 250.1202(l)
13. To which meters do BSEE requirements for gas measurement apply? § 250.1203(a)
14. What are the requirements for measuring gas? § 250.1203(b)
15. What are the requirements for gas meter calibrations? § 250.1203(c)
16. What must a lessee do if a gas meter is out of calibration or malfunctioning? § 250.1203(d)
17. What are the requirements when natural gas from a Federal lease is transferred to a gas plant be- § 250.1203(e)
fore royalty determination?
18. What are the requirements for measuring gas lost or used on a lease? § 250.1203(f)
19. What are the requirements for the surface commingling of production? § 250.1204(a)
20. What are the requirements for a periodic well test used for allocation? § 250.1204(b)
21. What are the requirements for site security? § 250.1205(a)
22. What are the requirements for using seals? § 250.1205(b)
225
§ 250.1201 30 CFR Ch. II (7–1–18 Edition)
§ 250.1201 Definitions. measurement system which exceeds

Terms not defined in this section contractual tolerances.
have the meanings given in the appli- Gas volume statement—a monthly
cable chapter of the API MPMS, which statement showing gas measurement
is incorporated by reference in § 250.198. data, including the volume (Mcf) and
Terms used in Subpart L have the fol- quality (Btu) of natural gas which
lowing meaning: flowed through a meter.
Allocation meter—a meter used to de- Inventory tank—a tank in which liq-
termine the portion of hydrocarbons uid hydrocarbons are stored prior to
attributable to one or more platforms, royalty measurement. The measured
leases, units, or wells, in relation to volumes are used in the allocation
the total production from a royalty or process.
allocation measurement point. Liquid hydrocarbons (free liquids)—hy-
API MPMS—the American Petroleum drocarbons which exist in liquid form
Institute’s Manual of Petroleum Meas- at standard conditions after passing
urement Standards, chapters 1, 20, and through separating facilities.
21. Malfunction factor—a liquid hydro-
British Thermal Unit (Btu)—the carbon royalty meter factor that dif-
amount of heat needed to raise the fers from the previous meter factor by
temperature of one pound of water an amount greater than 0.0025.
from 59.5 degrees Fahrenheit (59.5 °F) Natural gas—a highly compressible,
to 60.5 degrees Fahrenheit (60.5 °F) at highly expandable mixture of hydro-
standard pressure base (14.73 pounds carbons which occurs naturally in a
per square inch absolute (psia)). gaseous form and passes a meter in
Compositional Analysis—separating vapor phase.
mixtures into identifiable components Operating meter—a royalty or alloca-
expressed in mole percent. tion meter that is used for gas or liquid
Force majeure event—an event beyond hydrocarbon measurement for any pe-
your control such as war, act of ter- riod during a calibration cycle.
rorism, crime, or act of nature which Pipeline (retrograde) condensate—liq-
prevents you from operating the wells uid hydrocarbons which drop out of the
and meters on your OCS facility. separated gas stream at any point in a
Gas lost—gas that is neither sold nor pipeline during transmission to shore.
used on the lease or unit nor used in- Pressure base—the pressure at which
ternally by the producer. gas volumes and quality are reported.
Gas processing plant—an installation The standard pressure base is 14.73 psia.
that uses any process designed to re- Prove—to determine (as in meter
move elements or compounds (hydro- proving) the relationship between the
carbon and non-hydrocarbon) from gas, volume passing through a meter at one
including absorption, adsorption, or reset of conditions and the indicated vol-
frigeration. Processing does not in- ume at those same conditions.
clude treatment operations, including Royalty meter—a meter approved for
those necessary to put gas into mar- the purpose of determining the volume
ketable conditions such as natural of gas, oil, or other components re-
pressure reduction, mechanical separa- moved, saved, or sold from a Federal
tion, heating, cooling, dehydration, lease.
desulphurization, and compression. The Royalty tank—an approved tank in
changing of pressures or temperatures which liquid hydrocarbons are meas-
in a reservoir is not processing. ured and upon which royalty volumes
Gas processing plant statement—a are based.
monthly statement showing the vol- Run ticket—the invoice for liquid hy-
ume and quality of the inlet or field drocarbons measured at a royalty
gas stream and the plant products re- point.
covered during the period, volume of Sales meter—a meter at which custody
plant fuel, flare and shrinkage, and the transfer takes place (not necessarily a
allocation of these volumes to the royalty meter).
sources of the inlet stream. Seal—a device or approved method

Gas royalty meter malfunction—an used to prevent tampering with royalty
error in any component of the gas measurement components.
226
Standard conditions—atmospheric § 250.1202 Liquid hydrocarbon meas-

pressure of 14.73 pounds per square inch urement.
absolute (psia) and 60 °F.
(a) What are the requirements for meas-
Surface commingling—the surface mix-
ing of production from two or more uring liquid hydrocarbons? You must:
leases and/or unit participating areas (1) Submit a written application to,
prior to royalty measurement. and obtain approval from, the Regional
Temperature base—the temperature at Supervisor before commencing liquid
which gas and liquid hydrocarbon vol- hydrocarbon production, or making
umes and quality are reported. The any changes to the previously-approved
standard temperature base is 60 °F. measurement and/or allocation proce-
Verification/Calibration—testing and dures. Your application (which may
correcting, if necessary, a measuring also include any relevant gas measure-
device to ensure compliance with in- ment and surface commingling re-
dustry accepted, manufacturer’s rec- quests) must be accompanied by pay-
ommended, or regulatory required ment of the service fee listed in
standard of accuracy. § 250.125. The service fees are divided
You or your—the lessee or the oper- into two levels based on complexity as
ator or other lessees’ representative shown in the following table.
engaged in operations in the Outer
Continental Shelf (OCS).
Application type Actions
(i) Simple applications, Applications to temporarily reroute production (for a duration not to exceed six months); Pro-
duction tests prior to pipeline construction; Departures related to meter proving, well testing,
or sampling frequency.
(ii) Complex applications, Creation of new facility measurement points (FMPs); Association of leases or units with exist-
ing FMPs; Inclusion of production from additional structures; Meter updates which add buy-
back gas meters or pigging meters; Other applications which request deviations from the ap-
proved allocation procedures.
(2) Use measurement equipment and (viii) API MPMS, Chapter 21, Adden-
procedures that will accurately meas- dum to Section 2 (incorporated by ref-
ure the liquid hydrocarbons produced erence as specified in § 250.198);
from a lease or unit to comply with the (ix) API RP 86 (incorporated by ref-
following additional API MPMS indus- erence as specified in § 250.198);
try standards or API RP: (3) Use procedures and correction fac-
(i) API MPMS, Chapter 4, Section 8 tors according to the applicable chap-
(incorporated by reference as specified ters of the API MPMS or RP as incor-
in § 250.198); porated by reference in 30 CFR 250.198,
(ii) API MPMS, Chapter 5, Section 6 including the following additional edi-
(incorporated by reference as specified tions:
in § 250.198); (i) API MPMS, Chapter 4, Section 8
(iii) API MPMS, Chapter 5, Section 8 (incorporated by reference as specified
(incorporated by reference as specified in § 250.198);
in § 250.198); (ii) API MPMS, Chapter 5, Section 6
(iv) API MPMS, Chapter 11, Section 1 (incorporated by reference as specified
(incorporated by reference as specified in § 250.198);
in § 250.198); (iii) API MPMS, Chapter 5, Section 8
(v) API MPMS Chapter 12, Section 2, (incorporated by reference as specified
Part 3 (incorporated by reference as in § 250.198);
specified in § 250.198); (iv) API MPMS Chapter 11, Section 1
(vi) API MPMS Chapter 12, Section 2, (incorporated by reference as specified
Part 4 (incorporated by reference as in § 250.198);
(v) API MPMS Chapter 12, Section 2,

(vii) API MPMS, Chapter 21, Section Part 3 (incorporated by reference as
2 (incorporated by reference as speci- specified in § 250.198);
fied in § 250.198);
227
§ 250.1202 30 CFR Ch. II (7–1–18 Edition)
(vi) API MPMS Chapter 12, Section 2, downstream of the meter or divert
Part 4 (incorporated by reference as valve in accordance with the API
specified in § 250.198); MPMS (as incorporated by reference in
(vii) API RP 86 (incorporated by ref- § 250.198);
erence as specified in § 250.198); when (ii) The sample container is vapor-
obtaining net standard volume and as- tight and includes a power mixing de-
sociated measurement parameters; and vice to allow complete mixing of the
(4) When requested by the Regional sample before removal from the con-
Supervisor, provide the pipeline (retro- tainer; and
grade) condensate volumes as allocated (iii) The sample probe is in the center
to the individual leases or units. half of the pipe diameter in a vertical
(b) What are the requirements for liquid run and is located at least three pipe
hydrocarbon royalty meters? You must: diameters downstream of any pipe fit-
(1) Ensure that the royalty meter fa- ting within a region of turbulent flow.
cilities include the following approved The sample probe can be located in a
components (or other BSEE-approved horizontal pipe if adequate stream con-
components) which must be compatible ditioning such as power mixers or stat-
with their connected systems: ic mixers are installed upstream of the
(i) A meter equipped with a nonreset probe according to the manufacturer’s
totalizer; instructions.
(ii) A calibrated mechanical displace- (c) What are the requirements for run
ment (pipe) prover, master meter, or tickets? You must:
tank prover; (1) For royalty meters, ensure that
(iii) A proportional-to-flow sampling the run tickets clearly identify all ob-
device pulsed by the meter output; served data, all correction factors not
(iv) A temperature measurement or included in the meter factor, and the
temperature compensation device; and net standard volume.
(v) A sediment and water monitor (2) For royalty tanks, ensure that the
with a probe located upstream of the run tickets clearly identify all ob-
divert valve. served data, all applicable correction
(2) Ensure that the royalty meter fa- factors, on/off seal numbers, and the
cilities accomplish the following: net standard volume.
(i) Prevent flow reversal through the (3) Pull a run ticket at the beginning
meter; of the month and immediately after es-
(ii) Protect meters subjected to pres- tablishing the monthly meter factor or
sure pulsations or surges; a malfunction meter factor.
(iii) Prevent the meter from being (4) Send all run tickets for royalty
subjected to shock pressures greater meters and tanks to the Regional Su-
than the maximum working pressure; pervisor within 15 days after the end of
and the month;
(iv) Prevent meter bypassing. (d) What are the requirements for liquid
(3) Maintain royalty meter facilities hydrocarbon royalty meter provings? You
to ensure the following: must:
(i) Meters operate within the gravity (1) Permit BSEE representatives to
range specified by the manufacturer; witness provings;
(ii) Meters operate within the manu- (2) Ensure that the integrity of the
facturer’s specifications for maximum prover calibration is traceable to test
and minimum flow rate for linear accu- measures certified by the National In-
racy; and stitute of Standards and Technology;
(iii) Meters are reproven when (3) Prove each operating royalty
changes in metering conditions affect meter to determine the meter factor
the meters’ performance such as monthly, but the time between meter
changes in pressure, temperature, den- factor determinations must not exceed
sity (water content), viscosity, pres- 42 days. When a force majeure event
sure, and flow rate. precludes the required monthly meter
(4) Ensure that sampling devices con- proving, meters must be proved within
form to the following: 15 days after being returned to service.

(i) The sampling point is in the The meters must be proved monthly
flowstream immediately upstream or thereafter, but the time between meter
228
factor determinations must not exceed (2) Submit a copy of each calibration
42 days; report to the Regional Supervisor with-
(4) Obtain approval from the Re- in 15 days after the calibration.
gional Supervisor before proving on a (g) What correction factors must I use
schedule other than monthly; and when proving meters with a mechanical-
(5) Submit copies of all meter prov- displacement prover, tank prover, or mas-
ing reports for royalty meters to the ter meter? Calculate the following cor-
Regional Supervisor monthly within 15 rection factors using the API MPMS as
days after the end of the month. referenced in 30 CFR 250.198, including
(e) What are the requirements for cali- the following additional editions:
brating a master meter used in royalty (1) API MPMS, Chapter 4, Section 8
meter provings? You must: (incorporated by reference as specified
(1) Calibrate the master meter to ob- in § 250.198);
tain a master meter factor before using (2) API MPMS Chapter 11, Section 1
it to determine operating meter fac- (incorporated by reference as specified
tors; in § 250.198);
(2) Use a fluid of similar gravity, vis- (3) API MPMS Chapter 12, Section 2,
cosity, temperature, and flow rate as Part 3 (incorporated by reference as
the liquid hydrocarbons that flow specified in § 250.198);
through the operating meter to cali- (4) API MPMS Chapter 12, Section 2,
brate the master meter; Part 4 (incorporated by reference as
(3) Calibrate the master meter specified in § 250.198);
monthly, but the time between calibra- (h) What are the requirements for estab-
tions must not exceed 42 days; lishing and applying operating meter fac-
(4) Calibrate the master meter by re- tors for liquid hydrocarbons? (1) If you
cording runs until the results of two use a mechanical-displacement prover,
consecutive runs (if a tank prover is you must record proof runs until five
used) or five out of six consecutive runs out of six consecutive runs produce a
(if a mechanical-displacement prover is difference between individual runs of
used) produce meter factor differences no greater than .05 percent. You must
of no greater than 0.0002. Lessees must use the average of the five accepted
use the average of the two (or the five) runs to compute the meter factor.
runs that produced acceptable results (2) If you use a master meter, you
to compute the master meter factor; must record proof runs until three con-
(5) Install the master meter upstream secutive runs produce a total meter
of any back-pressure or reverse flow factor difference of no greater than
check valves associated with the oper- 0.0005. The flow rate through the me-
ating meter. However, the master ters during the proving must be within
meter may be installed either up- 10 percent of the rate at which the line
stream or downstream of the operating meter will operate. The final meter
meter; and factor is determined by averaging the
(6) Keep a copy of the master meter meter factors of the three runs;
calibration report at your field loca- (3) If you use a tank prover, you must
tion for 2 years. record proof runs until two consecutive
(f) What are the requirements for cali- runs produce a meter factor difference
brating mechanical-displacement provers of no greater than .0005. The final
and tank provers? You must: meter factor is determined by aver-
(1) Calibrate mechanical-displace- aging the meter factors of the two
ment provers and tank provers at least runs; and
once every 5 years according to the (4) You must apply operating meter
API MPMS as incorporated by ref- factors forward starting with the date
erence in 30 CFR 250.198, including the of the proving.
following additional editions: (i) Under what circumstances does a liq-
(i) API MPMS, Chapter 4, Section 8 uid hydrocarbon royalty meter need to be
(incorporated by reference as specified taken out of service, and what must I do?
in § 250.198); (1) If the difference between the meter
(ii) API MPMS Chapter 12, Section 2, factor and the previous factor exceeds
Part 4 (incorporated by reference as 0.0025 it is a malfunction factor, and
specified in § 250.198); you must:
229
§ 250.1202 30 CFR Ch. II (7–1–18 Edition)
(i) Remove the meter from service (3) Prove operating allocation meters
and inspect it for damage or wear; monthly if they measure 50 or more
(ii) Adjust or repair the meter, and barrels per day per meter the previous
reprove it; month. When a force majeure event
(iii) Apply the average of the mal- precludes the required monthly meter
function factor and the previous factor proving, meters must be proved within
to the production measured through 15 days after being returned to service.
the meter between the date of the pre- The meters must be proved monthly
vious factor and the date of the mal- thereafter; or
function factor; and (4) Prove operating allocation meters
(iv) Indicate that a meter malfunc- quarterly if they measure less than 50
tion occurred and show all appropriate barrels per day per meter the previous
remarks regarding subsequent repairs month. When a force majeure event
or adjustments on the proving report. precludes the required quarterly meter
(2) If a meter fails to register produc- proving, meters must be proved within
tion, you must: 15 days after being returned to service.
(i) Remove the meter from service, The meters must be proved quarterly
repair and reprove it; thereafter;
(ii) Apply the previous meter factor (5) Keep a copy of the proving reports
to the production run between the date at the field location for 2 years;
of that factor and the date of the fail- (6) Adjust and reprove the meter if
ure; and the meter factor differs from the pre-
(iii) Estimate and report unregistered vious meter factor by more than 2 per-
production on the run ticket. cent and less than 7 percent;
(3) If the results of a royalty meter (7) For turbine meters, remove from
proving exceed the run tolerance cri- service, inspect and reprove the meter
teria and all measures excluding the if the factor differs from the previous
adjustment or repair of the meter can- meter factor by more than 2 percent
not bring results within tolerance, you and less than 7 percent;
must:
(8) Repair and reprove, or replace and
(i) Establish a factor using proving prove the meter if the meter factor dif-
results made before any adjustment or fers from the previous meter factor by
repair of the meter; and
7 percent or more; and
(ii) Treat the established factor like
(9) Permit BSEE representatives to
a malfunction factor (see paragraph
witness provings.
(i)(1) of this section).
(l) What are the requirements for roy-
(j) How must I correct gross liquid hy-
drocarbon volumes to standard condi- alty and inventory tank facilities? You
tions? To correct gross liquid hydro- must:
carbon volumes to standard conditions, (1) Equip each royalty and inventory
you must: tank with a vapor-tight thief hatch, a
(1) Include Cpl factors in the meter vent-line valve, and a fill line designed
factor calculation or list and apply to minimize free fall and splashing;
them on the appropriate run ticket. (2) For royalty tanks, submit a com-
(2) List Ctl factors on the appropriate plete set of calibration charts (tank ta-
run ticket when the meter is not auto- bles) to the Regional Supervisor before
matically temperature compensated. using the tanks for royalty measure-
(k) What are the requirements for liquid ment;
hydrocarbon allocation meters? For liq- (3) For inventory tanks, retain the
uid hydrocarbon allocation meters you calibration charts for as long as the
must: tanks are in use and submit them to
(1) Take samples continuously pro- the Regional Supervisor upon request;
portional to flow or daily (use the pro- and
cedure in the applicable chapter of the (4) Obtain the volume and other
API MPMS as incorporated by ref- measurement parameters by using cor-
erence in § 250.198; rections factors and procedures in the

(2) For turbine meters, take the sam- API MPMS as incorporated by ref-
ple proportional to the flow only; erence in 30 CFR 250.198, including: API
230
MPMS Chapter 11, Section 1 (incor- (7) Ensure that standard conditions
porated by reference as specified in for reporting gross heating value (Btu)
§ 250.198). are at a base temperature of 60 °F and
at a base pressure of 14.73 psia and re-
FR 18921, Mar. 29, 2012] flect the same degree of water satura-
tion as in the gas volume.
§ 250.1203 Gas measurement. (8) When requested by the Regional
(a) To which meters do BSEE require- Supervisor, submit copies of gas vol-
ments for gas measurement apply? BSEE ume statements for each requested gas
requirements for gas measurements meter. Show whether gas volumes and
apply to all OCS gas royalty and allo- gross Btu heating values are reported
cation meters. at saturated or unsaturated conditions;
(b) What are the requirements for meas- and
uring gas? You must: (9) When requested by the Regional
(1) Submit a written application to, Supervisor, provide volume and quality
and obtain approval from, the Regional statements on dispositions other than
Supervisor before commencing gas pro- those on the gas volume statement.
duction, or making any changes to the (c) What are the requirements for gas
previously-approved measurement and/ meter calibrations? You must:
or allocation procedures. Your applica- (1) Verify/calibrate operating meters
tion (which may also include any rel- monthly, but do not exceed 42 days be-
evant liquid hydrocarbon measurement tween verifications/calibrations. When
and surface commingling requests) a force majeure event precludes the re-
must be accompanied by payment of quired monthly meter verification/cali-
the service fee listed in § 250.125. The bration, meters must be verified/cali-
service fees are divided into two levels brated within 15 days after being re-
based on complexity, see table in turned to service. The meters must be
§ 250.1202(a)(1). verified/calibrated monthly thereafter,
(2) Design, install, use, maintain, and but do not exceed 42 days between
test measurement equipment and pro- meter verifications/calibrations;
cedures to ensure accurate and (2) Calibrate each meter by using the
verifiable measurement. You must fol- manufacturer’s specifications;
low the recommendations in API (3) Conduct calibrations as close as
MPMS or RP and AGA as incorporated possible to the average hourly rate of
by reference in 30 CFR 250.198, includ- flow since the last calibration;
ing the following additional editions: (4) Retain calibration reports at the
(i) API RP 86 (incorporated by ref- field location for 2 years, and send the
erence as specified in § 250.198); reports to the Regional Supervisor
(ii) AGA Report No. 7 (incorporated upon request; and
by reference as specified in § 250.198); (5) Permit BSEE representatives to
(iii) AGA Report No. 9 (incorporated witness calibrations.
by reference as specified in § 250.198); (d) What must I do if a gas meter is out
(iv) AGA Report No. 10 (incorporated of calibration or malfunctioning? If a gas
by reference as specified in § 250.198); meter is out of calibration or malfunc-
(3) Ensure that the measurement tioning, you must:
components demonstrate consistent (1) If the readings are greater than
levels of accuracy throughout the sys- the contractual tolerances, adjust the
tem. meter to function properly or remove
(4) Equip the meter with a chart or it from service and replace it.
electronic data recorder. If an elec- (2) Correct the volumes to the last
tronic data recorder is used, you must acceptable calibration as follows:
follow the recommendations in API (i) If the duration of the error can be
MPMS. determined, calculate the volume ad-
(5) Take proportional-to-flow or spot justment for that period.
samples upstream or downstream of (ii) If the duration of the error can-
the meter at least once every 6 months. not be determined, apply the volume
(6) When requested by the Regional adjustment to one-half of the time

Supervisor, provide available informa- elapsed since the last calibration or 21
tion on the gas quality. days, whichever is less.
231
§ 250.1204 30 CFR Ch. II (7–1–18 Edition)
(e) What are the requirements when divided into two levels based on com-
natural gas from a Federal lease on the plexity, see table in § 250.1202(a)(1).
OCS is transferred to a gas plant before (2) Upon the request of the Regional
royalty determination? If natural gas Supervisor, lessees who deliver State
from a Federal lease on the OCS is lease production into a Federal com-
transferred to a gas plant before roy- mingling system must provide volu-
alty determination: metric or fractional analysis data on
(1) You must provide the following to the State lease production through the
the Regional Supervisor upon request: designated system operator.
(i) A copy of the monthly gas proc-
(b) What are the requirements for a
essing plant allocation statement; and
periodic well test used for allocation? You
(ii) Gross heating values of the inlet
must:
and residue streams when not reported
on the gas plant statement. (1) Conduct a well test at least once
(2) You must permit BSEE to inspect every 60 days unless the Regional Su-
the measurement and sampling equip- pervisor approves a different fre-
ment of natural gas processing plants quency. When a force majeure event
that process Federal production. precludes the required well test within
(f) What are the requirements for meas- the prescribed 60 day period (or other
uring gas lost or used on a lease? (1) You frequency approved by the Regional
must either measure or estimate the Supervisor), wells must be tested with-
volume of gas lost or used on a lease. in 15 days after being returned to pro-
(2) If you measure the volume, docu- duction. Thereafter, well tests must be
ment the measurement equipment used conducted at least once every 60 days
and include the volume measured. (or other frequency approved by the
(3) If you estimate the volume, docu- Regional Supervisor);
ment the estimating method, the data (2) Follow the well test procedures in
used, and the volumes estimated. 30 CFR part 250, subpart K; and
(4) You must keep the documenta- (3) Retain the well test data at the
tion, including the volume data, easily field location for 2 years.
obtainable for inspection at the field
location for at least 2 years, and must § 250.1205 Site security.
retain the documentation at a location (a) What are the requirements for site
of your choosing for at least 7 years security? You must:
after the documentation is generated,
(1) Protect Federal production
subject to all other document retention
against production loss or theft;
and production requirements in 30
U.S.C. 1713 and 30 CFR part 1212. (2) Post a sign at each royalty or in-
(5) Upon the request of the Regional ventory tank which is used in the roy-
Supervisor, you must provide copies of alty determination process. The sign
the records. must contain the name of the facility
operator, the size of the tank, and the
[76 FR 64462, Oct. 18, 2011, as amended at 77 tank number;
FR 18922, Mar. 29, 2012]
(3) Not bypass BSEE-approved liquid
§ 250.1204 Surface commingling. hydrocarbon royalty meters and tanks;
and
(a) What are the requirements for the
(4) Report the following to the Re-
surface commingling of production? You
gional Supervisor as soon as possible,
must:
(1) Submit a written application to, but no later than the next business day
and obtain approval from, the Regional after discovery:
Supervisor before commencing the (i) Theft or mishandling of produc-
commingling of production or making tion;
any changes to the previously approved (ii) Tampering or bypassing any com-
commingling procedures. Your applica- ponent of the royalty measurement fa-
tion (which may also include any rel- cility; and
evant liquid hydrocarbon and gas (iii) Falsifying production measure-
measurement requests) must be accom- ments.

panied by payment of the service fee (b) What are the requirements for using
listed in § 250.125. The service fees are seals? You must:
232
(1) Seal the following components of a reasonably delineated and productive

liquid hydrocarbon royalty meter in- reservoir.
stallations to ensure that tampering (b) Compulsory unitization. The Re-
cannot occur without destroying the gional Supervisor may require you and
seal: other lessees to unitize operations of a
(i) Meter component connections reasonably delineated and productive
from the base of the meter up to and reservoir if unitized operations are nec-
including the register; essary to:
(ii) Sampling systems including (1) Prevent waste;
packing device, fittings, sight glass, (2) Conserve natural resources; or
and container lid; (3) Protect correlative rights, includ-
(iii) Temperature and gravity coming Federal royalty interests.
pensation device components; (c) Unit area. The area that a unit in-
(iv) All valves on lines leaving a roy- cludes is the minimum number of
alty or inventory storage tank, includ- leases that will allow the lessees to
ing load-out line valves, drain-line minimize the number of platforms, fa-
valves, and connection-line valves be- cility installations, and wells nec-
tween royalty and non-royalty tanks; essary for efficient exploration, devel-
and opment, and production of mineral de-
(v) Any additional components re- posits, oil and gas reservoirs, or poten-
quired by the Regional Supervisor. tial hydrocarbon accumulations com-
(2) Seal all bypass valves of gas roy- mon to two or more leases. A unit may
alty and allocation meters. include whole leases or portions of
(3) Number and track the seals and leases.
keep the records at the field location (d) Unit agreement. You, the other les-
for at least 2 years; and sees, and the unit operator must enter
(4) Make the records of seals avail- into a unit agreement. The unit agree-
able for BSEE inspection. ment must: allocate benefits to unit-
ized leases, designate a unit operator,
Subpart M—Unitization and specify the effective date of the
unit agreement. The unit agreement
§ 250.1300 What is the purpose of this must terminate when: the unit no
subpart? longer produces unitized substances,
This subpart explains how Outer Con- and the unit operator no longer con-
tinental Shelf (OCS) leases are unit- ducts drilling or well-workover oper-
ized. If you are an OCS lessee, use the ations (§ 250.180) under the unit agree-
regulations in this subpart for both ment, unless the Regional Supervisor
competitive reservoir and unitization orders or approves a suspension of pro-
situations. The purpose of joint devel- duction under § 250.170.
opment and unitization is to: (e) Unit operating agreement. The unit
(a) Conserve natural resources; operator and the owners of working in-
(b) Prevent waste; and/or terests in the unitized leases must
(c) Protect correlative rights, includ- enter into a unit operating agreement.
ing Federal royalty interests. The unit operating agreement must de-
scribe how all the unit participants
§ 250.1301 What are the requirements will apportion all costs and liabilities
for unitization? incurred maintaining or conducting op-
(a) Voluntary unitization. You and erations. When a unit involves one or
other OCS lessees may ask the Re- more net-profit-share leases, the unit
gional Supervisor to approve a request operating agreement must describe
for voluntary unitization. The Re- how to attribute costs and credits to
gional Supervisor may approve the re- the net-profit-share lease(s), and this
quest for voluntary unitization if unit- part of the agreement must be ap-
ized operations: proved by the Regional Supervisor.
(1) Promote and expedite exploration Otherwise, you must provide a copy of
and development; or the unit operating agreement to the
(2) Prevent waste, conserve natural Regional Supervisor, but the Regional
resources, or protect correlative rights, Supervisor does not need to approve
including Federal royalty interests, of the unit operating agreement.
233
§ 250.1302 30 CFR Ch. II (7–1–18 Edition)
(f) Extension of a lease covered by unit agreement. A competitive reservoir has

operations. If your unit agreement ex- one or more producing or producible
pires or terminates, or the unit area well completions on each of two or
adjusts so that no part of your lease re- more leases, or portions of leases, with
mains within the unit boundaries, your different lease operating interests. For
lease expires unless: purposes of this paragraph, a produc-
(1) Its initial term has not expired; ible well completion is a well which is
(2) You conduct drilling, production, capable of production and which is shut
or well-reworking operations on your in at the well head or at the surface
lease consistent with applicable regula- but not necessarily connected to pro-
tions; or duction facilities and from which the
(3) BSEE orders or approves a suspen- operator plans future production.
sion of production or operations for
(b) You may request that the Re-
your lease.
gional Supervisor make a preliminary
(g) Unit operations. If your lease, or
determination whether a reservoir is
any part of your lease, is subject to a
competitive. When you receive the pre-
unit agreement, the entire lease con-
tinues for the term provided in the liminary determination, you have 30
lease, and as long thereafter as any days (or longer if the Regional Super-
portion of your lease remains part of visor allows additional time) to concur
the unit area, and as long as operations or to submit an objection with sup-
continue the unit in effect. porting evidence if you do not concur.
(1) If you drill, produce or perform The Regional Supervisor will make a
well-workover operations on a lease final determination and notify you and
within a unit, each lease, or part of a the other lessees.
lease, in the unit will remain active in (c) If you conduct drilling or produc-
accordance with the unit agreement. tion operations in a reservoir deter-
Following a discovery, if your unit mined competitive by the BSEE Re-
ceases drilling activities for a reason- gional Supervisor, you and the other
able time period between the delinea- affected lessees must submit for ap-
tion of one or more reservoirs and the proval a joint Competitive Reservoir
initiation of actual development drill- Development Program. You must sub-
ing or production operations and that mit the joint Competitive Reservoir
time period would extend beyond your Development Program within 90 days
lease’s primary term or any extension after the Regional Supervisor makes a
under § 250.180, the unit operator must final determination that the reservoir
request and obtain BSEE approval of a is competitive. The joint Competitive
suspension of production under § 250.170 Reservoir Development Program must
in order to keep the unit from termi- provide for the development and/or pro-
nating. duction of the reservoir. You may sub-
(2) When a lease in a unit agreement mit supplemental Competitive Res-
is beyond the primary term and the
ervoir Development Programs for the
lease or unit is not producing, the lease
Regional Supervisor’s approval.
will expire unless:
(i) You conduct a continuous drilling (d) If you and the other affected les-
or well reworking program designed to sees cannot reach an agreement on a
develop or restore the lease or unit pro- joint Competitive Reservoir Develop-
duction; or ment Program, submitted to BSEE
(ii) BSEE orders or approves a sus- within the approved period of time,
pension of operations under § 250.170. each lessee must submit a separate
Competitive Reservoir Development
§ 250.1302 What if I have a competitive Program to the Regional Supervisor.
reservoir on a lease? The Regional Supervisor will hold a
(a) The Regional Supervisor may re- hearing to resolve differences in the
quire you to conduct development and separate Competitive Reservoir Devel-
production operations in a competitive opment Programs. If the differences in
reservoir under either a joint Competi- the separate programs are not resolved
tive Reservoir Development Program at the hearing and the Regional Super-
submitted to BSEE or a unitization visor determines that unitization is
234
necessary under § 250.1301(b), BSEE will the Regional Supervisor. You must in-
initiate unitization under § 250.1304. clude a proposed unit agreement as de-
scribed in §§ 250.1301(d) and 250.1303(b); a
FR 36150, June 6, 2016] proposed unit operating agreement; a
proposed initial plan of operation; sup-
§ 250.1303 How do I apply for vol- porting geological, geophysical, and
untary unitization? engineering data; and any other infor-
(a) You must file a request for a vol- mation that may be necessary to show
untary unit with the Regional Super- that unitization meets the criteria of
visor. Your request must include: § 250.1300. The proposed unit agreement
(1) A draft of the proposed unit agree- must include a counterpart executed
ment; by each lessee seeking compulsory
(2) A proposed initial plan of oper- unitization. Lessees who seek compul-
ation; sory unitization must simultaneously
(3) Supporting geological, geo- serve on the nonconsenting lessees cop-
physical, and engineering data; and ies of:
(4) Other information that may be (1) The request;
necessary to show that the unitization (2) The proposed unit agreement with
proposal meets the criteria of § 250.1300. executed counterparts;
(b) The unit agreement must comply (3) The proposed unit operating
with the requirements of this part. agreement; and
BSEE will maintain and provide a (4) The proposed initial plan of oper-
model unit agreement for you to fol- ation.
low. If BSEE revises the model, BSEE (c) If the Regional Supervisor initi-
will publish the revised model in the ates compulsory unitization, BSEE will
FEDERAL REGISTER. If you vary your serve all lessees of the proposed unit
unit agreement from the model agree- area with a proposed unitization plan
ment, you must obtain the approval of and a statement of reasons for the pro-
the Regional Supervisor. posed unitization.
(c) After the Regional Supervisor ac- (d) The Regional Supervisor will not
cepts your unitization proposal, you, require unitization until BSEE pro-
the other lessees, and the unit operator vides all lessees of the proposed unit
must sign and file copies of the unit area written notice and an opportunity
agreement, the unit operating agree- for a hearing. If you want BSEE to
ment, and the initial plan of operation hold a hearing, you must request it
with the Regional Supervisor for ap- within 30 days after you receive writ-
proval. ten notice from the Regional Super-
(d) You must pay the service fee list- visor or after you are served with a re-
ed in § 250.125 of this part with your request for compulsory unitization from
quest for a voluntary unitization pro- another lessee.
posal or the expansion of a previously (e) BSEE will not hold a hearing
approved voluntary unit to include ad- under this paragraph until at least 30
ditional acreage. Additionally, you days after BSEE provides written no-
must pay the service fee listed in tice of the hearing date to all parties
§ 250.125 with your request for unitiza- owning interests that would be made
tion revision. subject to the unit agreement. The Re-
gional Supervisor must give all lessees
§ 250.1304 How will BSEE require unit- of the proposed unit area an oppor-
ization? tunity to submit views orally and in
(a) If the Regional Supervisor deter- writing and to question both those
mines that unitization of operations seeking and those opposing compulsory
within a proposed unit area is nec- unitization. Adjudicatory procedures
essary to prevent waste, conserve nat- are not required. The Regional Super-
ural resources of the OCS, or protect visor will make a decision based upon a
correlative rights, including Federal record of the hearing, including any
royalty interests, the Regional Super- written information made a part of the
visor may require unitization. record. The Regional Supervisor will

(b) If you ask BSEE to require unit- arrange for a court reporter to make a
ization, you must file a request with verbatim transcript. The party seeking
235
§ 250.1400 30 CFR Ch. II (7–1–18 Edition)
compulsory unitization must pay for rights-of-way, or other approvals

the court reporter and pay for and pro- issued under the OCSLA.
vide to the Regional Supervisor within Violator means a person responsible
10 days after the hearing three copies for a violation.
of the verbatim transcript.
(f) The Regional Supervisor will issue § 250.1403 What is the maximum civil
an order that requires or rejects com- penalty?
pulsory unitization. That order must The maximum civil penalty is $43,576
include a statement of reasons for the per day per violation.
action taken and identify those parts
of the record which form the basis of [83 FR 2540, Jan. 18, 2018]
the decision. Any adversely affected § 250.1404 Which violations will BSEE
party may appeal the final order of the review for potential civil penalties?
Regional Supervisor under 30 CFR part
290. BSEE will review each of the fol-
lowing violations for potential civil
penalties:
Subpart N—Outer Continental (a) Violations that you do not correct
Shelf Civil Penalties within the period BSEE grants;
OUTER CONTINENTAL SHELF LANDS ACT (b) Violations that BSEE determines
CIVIL PENALTIES may constitute, or constituted, a
threat of serious, irreparable, or imme-
§ 250.1400 How does BSEE begin the diate harm or damage to life (including
civil penalty process? fish and other aquatic life), property,
This subpart explains BSEEs civil any mineral deposit, or the marine,
penalty procedures whenever a lessee, coastal, or human environment; or
operator or other person engaged in oil, (c) Violations that cause serious, ir-
gas, sulphur or other minerals oper- reparable, or immediate harm or dam-
ations in the OCS has a violation. age to life (including fish and other
Whenever BSEE determines, on the aquatic life), property, any mineral de-
basis of available evidence, that a vio- posit, or the marine, coastal, or human
lation occurred and a civil penalty re- environment.
view is appropriate, it will prepare a (d) Violations of the oil spill finan-
case file. BSEE will appoint a Review- cial responsibility requirements at 30
ing Officer. CFR part 553.
§ 250.1401 [Reserved] § 250.1405 When is a case file devel-

oped?
§ 250.1402 Definitions. BSEE will develop a case file during
Terms used in this subpart have the its investigation of the violation, and
following meaning: forward it to a Reviewing Officer if any
Case file means a BSEE document file of the conditions in § 250.1404 exist. The
containing information and the record Reviewing Officer will review the case
of evidence related to the alleged viola- file and determine if a civil penalty is
tion. appropriate. The Reviewing Officer
Civil penalty means a fine. It is a may administer oaths and issue sub-
BSEE regulatory enforcement tool poenas requiring witnesses to attend
used in addition to Notices of Incidents meetings, submit depositions, or
of Noncompliance and directed suspen- produce evidence.
sions of production or other operations.
Reviewing Officer means a BSEE em- § 250.1406 When will BSEE notify me
ployee assigned to review case files and and provide penalty information?
assess civil penalties. If the Reviewing Officer determines
Violation means failure to comply that a civil penalty should be assessed,
with the Outer Continental Shelf the Reviewing Officer will send the vio-
Lands Act (OCSLA) or any other appli- lator a letter of notification. The letter
cable laws, with any regulations issued of notification will include:

under the OCSLA, or with the terms or (a) The amount of the proposed civil
provisions of leases, licenses, permits, penalty;
236
(b) Information on the violation(s); bond with the regional office in the
and same manner as under 30 CFR 556.53(d)
(c) Instruction on how to obtain a through (f). If the Regional Director
copy of the case file, schedule a meet- determines the appeal should be cov-
ing, submit information, or pay the ered by a lease-specific abandonment
penalty. account then you must establish an ac-
count that meets the requirements of
§ 250.1407 How do I respond to the let- 30 CFR part 556.56.
ter of notification?
(d) If you do not either pay the pen-
You have 30 calendar days after you alty or file a timely appeal, BSEE will
receive the Reviewing Officer’s letter take one or more of the following ac-
to either: tions:
(a) Request, in writing, a meeting (1) We will collect the amount you
with the Reviewing Officer;
were assessed, plus interest, late pay-
(b) Submit additional information; or
ment charges, and other fees as pro-
(c) Pay the proposed civil penalty.
vided by law, from the date you re-
§ 250.1408 When will I be notified of ceived the Reviewing Officer’s final de-
the Reviewing Officer’s decision? cision until the date we receive pay-
At the end of the 30 calendar days or ment;
after the meeting and submittal of ad- (2) We may initiate additional en-
ditional information, the Reviewing forcement, including, if appropriate,
Officer will review the case file, includ- cancellation of the lease, right-of-way,
ing all information you submitted, and license, permit, or approval, or the for-
send you a decision. The decision will feiture of a bond under this part; or
include the amount of any final civil (3) We may bar you from doing fur-
penalty, the basis for the civil penalty, ther business with the Federal Govern-
and instructions for paying or appeal- ment according to Executive Orders
ing the civil penalty. 12549 and 12689, and section 2455 of the
Federal Acquisition Streamlining Act
§ 250.1409 What are my appeal rights? of 1994, 31 U.S.C. 6101. The Department
(a) When you receive the Reviewing of the Interior’s regulations imple-
Officer’s final decision, you have 60 menting these authorities are found at
days to either pay the penalty or file 43 CFR part 12, subpart D.
an appeal in accordance with 30 CFR
part 290, subpart A. FEDERAL OIL AND GAS ROYALTY MAN-
(b) If you file an appeal, you must ei- AGEMENT ACT CIVIL PENALTIES DEFI-
ther: NITIONS
(1) Submit a surety bond in the
amount of the penalty to the appro- § 250.1450 What definitions apply to
priate Leasing Office in the Region this subpart?
where the penalty was assessed, fol- The terms used in this subpart have
lowing instructions that the Reviewing the same meaning as in 30 U.S.C. 1702.
Officer will include in the final deci-
sion; or PENALTIES AFTER A PERIOD TO CORRECT
(2) Notify the appropriate Leasing Of-
fice, in the Region where the penalty § 250.1451 What may BSEE do if I vio-
was assessed, that you want your lease- late a statute, regulation, order, or
specific/area-wide bond on file to be lease term relating to a Federal oil
and gas lease?
used as the bond for the penalty
amount. (a) If we believe that you have not
(c) If you choose the alternative in followed any requirement of a statute,
paragraph (b)(2) of this section, the regulation, order, or lease term for any
BOEM Regional Director may require Federal oil or gas lease, we may send
additional security (i.e., security in ex- you a Notice of Noncompliance inform-
cess of your existing bond) to ensure ing you what the violation is and what
sufficient coverage during an appeal. In you need to do to correct it to avoid

that event, the Regional Director will civil penalties under 30 U.S.C. 1719(a)
require you to post the supplemental and (b).
237
§ 250.1452 30 CFR Ch. II (7–1–18 Edition)
(b) We will serve the Notice of Non- violations identified in the Notice of
compliance by registered mail or per- Noncompliance.
sonal service using the most current
address on file as maintained by the § 250.1455 Does my request for a hear-
BOEM Leasing Office in your respec- ing on the record affect the pen-
tive Region. alties?
(a) If you do not correct the viola-
§ 250.1452 What if I correct the violations identified in the Notice of Non-
tion? compliance, the penalties will continue
The matter will be closed if you cor- to accrue even if you request a hearing
rect all of the violations identified in on the record.
the Notice of Noncompliance within 20 (b) You may petition the Hearings
days after you receive the Notice (or Division (Departmental) of the Office
within a longer time period specified in of Hearings and Appeals, to stay the
the Notice). accrual of penalties pending the hear-
ing on the record and a decision by the
§ 250.1453 What if I do not correct the Administrative Law Judge under
violation?
§ 250.1472.
(a) We may send you a Notice of Civil (1) You must file your petition within
Penalty if you do not correct all of the 45 calendar days of receiving the Notice
violations identified in the Notice of of Noncompliance.
Noncompliance within 20 days after (2) To stay the accrual of penalties,
you receive the Notice of Noncompli- you must post a bond or other surety
ance (or within a longer time period instrument, or demonstrate financial
specified in that Notice). The Notice of
solvency, using the standards and re-
Civil Penalty will tell you how much
quirements as prescribed in BOEM’s
penalty you must pay. The penalty
regulations, 30 CFR part 550, subpart N.
may be up to $500 per day, beginning
The posted amount must cover the un-
with the date of the Notice of Non-
paid principal and interest due for the
compliance, for each violation identi-
Notice of Noncompliance, plus the
fied in the Notice of Noncompliance for
amount of any penalties accrued before
as long as you do not correct the viola-
the date a stay becomes effective.
tions.
(3) The Hearings Division will grant
(b) If you do not correct all of the
or deny the petition under 43 CFR
violations identified in the Notice of
4.21(b).
Noncompliance within 40 days after
you receive the Notice of Noncompli- [76 FR 64462, Oct. 18, 2011, as amended at 81
ance (or 20 days following the expira- FR 36150, June 6, 2016]
tion of a longer time period specified in
that Notice), we may increase the pen- § 250.1456 May I request a hearing on
alty to up to $5,000 per day, beginning the record regarding the amount of
with the date of the Notice of Non- a civil penalty if I did not request a
hearing on the Notice of Non-
compliance, for each violation for as compliance?
long as you do not correct the viola-
tions. (a) You may request a hearing on the
record to challenge only the amount of
§ 250.1454 How may I request a hear- a civil penalty when you receive a No-
ing on the record on a Notice of tice of Civil Penalty, if you did not pre-
Noncompliance? viously request a hearing on the record
You may request a hearing on the under § 250.1454. If you did not request a
record on a Notice of Noncompliance hearing on the record on the Notice of
by filing a request within 30 days of the Noncompliance under § 250.1454, you
date you received the Notice of Non- may not contest your underlying li-
compliance with the Hearings Division ability for civil penalties.
(Departmental), Office of Hearings and (b) You must file your request within
Appeals, U.S. Department of the Inte- 10 days after you receive the Notice of
rior, 801 North Quincy Street, Arling- Civil Penalty with the Hearings Divi-
ton, Virginia 22203. You may do this re- sion (Departmental), Office of Hearings
gardless of whether you correct the and Appeals, U.S. Department of the
238
Interior, 801 North Quincy Street, Ar- your address of record as specified
lington, Virginia 22203. under 30 CFR part 1218, Subpart H.
PENALTIES WITHOUT A PERIOD TO § 250.1462 How may I request a hear-
CORRECT ing on the record on a Notice of
Noncompliance regarding viola-
§ 250.1460 May I be subject to pen- tions without a period to correct?
alties without prior notice and an
opportunity to correct? You may request a hearing on the
record of a Notice of Noncompliance
The Federal Oil and Gas Royalty regarding violations without a period
Management Act sets out several spe-
to correct by filing a request within 30
cific violations for which penalties ac-
days after you receive the Notice of
crue without an opportunity to first
correct the violation. Noncompliance with the Hearings Divi-
(a) Under 30 U.S.C. 1719(c), you may sion (Departmental), Office of Hearings
be subject to penalties of up to $10,000 and Appeals, U.S. Department of the
per day per violation for each day the Interior, 801 North Quincy Street, Ar-
violation continues if you: lington, Virginia 22203. You may do
(1) Fail or refuse to permit lawful this regardless of whether you correct
entry, inspection, or audit; or the violations identified in the Notice
(2) Knowingly or willfully fail or of Noncompliance.
refuse to notify the Secretary, within 5
business days after any well begins pro- § 250.1463 Does my request for a hear-
duction on a lease site or allocated to ing on the record affect the pen-
alties?
a lease site, or resumes production in
the case of a well which has been off (a) If you do not correct the viola-
production for more than 90 days, of tions identified in the Notice of Non-
the date on which production has compliance regarding violations with-
begun or resumed. out a period to correct, the penalties
(b) Under 30 U.S.C. 1719(d), you may will continue to accrue even if you re-
be subject to civil penalties of up to quest a hearing on the record.
$25,000 per day for each day each viola- (b) You may ask the Hearings Divi-
tion continues if you: sion (Departmental) to stay the ac-
(1) Knowingly or willfully prepare, crual of penalties pending the hearing
maintain, or submit false, inaccurate, on the record and a decision by the Ad-
or misleading reports, notices, affida- ministrative Law Judge under
vits, records, data, or other written in- § 250.1472.
formation;
(1) You must file your petition within
(2) Knowingly or willfully take or re-
45 calendar days after you receive the
move, transport, use or divert any oil
Notice of Noncompliance.
or gas from any lease site without hav-
ing valid legal authority to do so; or (2) To stay the accrual of penalties,
(3) Purchase, accept, sell, transport, you must post a bond or other surety
or convey to another person, any oil or instrument, or demonstrate financial
gas knowing or having reason to know solvency, using the standards and re-
that such oil or gas was stolen or un- quirements as prescribed in BOEM’s
lawfully removed or diverted. regulations, 30 CFR part 550, subpart N.
The posted amount must cover the un-
§ 250.1461 How will BSEE inform me of paid principal and interest due for the
violations without a period to cor- Notice of Noncompliance, plus the
rect? amount of any penalties accrued before
We will inform you of any violation, the date a stay becomes effective.
without a period to correct, by issuing (3) The Hearings Division will grant
a Notice of Noncompliance and Civil or deny the petition under 43 CFR
Penalty explaining the violation, how 4.21(b).
to correct it, and the penalty assess-
ment. We will serve the Notice of Non- [76 FR 64462, Oct. 18, 2011, as amended at 81
compliance and Civil Penalty by reg- FR 36150, June 6, 2016]
istered mail or personal service using
239
§ 250.1464 30 CFR Ch. II (7–1–18 Edition)
§ 250.1464 May I request a hearing on you may appeal that decision to the In-
the record regarding the amount of terior Board of Land Appeals under 43
a civil penalty if I did not request a CFR part 4, subpart E.
hearing on the Notice of Non-
compliance? § 250.1474 May I seek judicial review
(a) You may request a hearing on the of the decision of the Interior
record to challenge only the amount of Board of Land Appeals?
a civil penalty when you receive a No- Under 30 U.S.C. 1719(j), you may seek
tice of Civil Penalty regarding viola- judicial review of the decision of the
tions without a period to correct, if Interior Board of Land Appeals. A suit
you did not previously request a hear- for judicial review in the District Court
ing on the record under § 250.1462. If you
will be barred unless filed within 90
did not request a hearing on the record
days after the final order.
on the Notice of Noncompliance under
§ 250.1462, you may not contest your un- § 250.1475 When must I pay the pen-
derlying liability for civil penalties. alty?
(b) You must file your request within
10 days after you receive Notice of Civil (a) You must pay the amount of the
Penalty with the Hearings Division Notice of Civil Penalty issued under
(Departmental), Office of Hearings and § 250.1453 or § 250.1461, if you do not re-
Appeals, U.S. Department of the Inte- quest a hearing on the record under
rior, 801 North Quincy, Arlington, Vir- § 250.1454, § 250.1456, § 250.1462, or
ginia 22203. § 250.1464.
(b) If you request a hearing on the
GENERAL PROVISIONS record under § 250.1454, § 250.1456,
§ 250.1470 How does BSEE decide what § 250.1462, or § 250.1464, but you do not
the amount of the penalty should appeal the determination of the Ad-
be? ministrative Law Judge to the Interior
We determine the amount of the pen- Board of Land Appeals under § 250.1473,
alty by considering the severity of the you must pay the amount assessed by
violations, your history of compliance, the Administrative Law Judge.
and if you are a small business. (c) If you appeal the determination of
the Administrative Law Judge to the
§ 250.1471 Does the penalty affect Interior Board of Land Appeals, you
whether I owe interest? must pay the amount assessed in the
If you do not pay the penalty by the IBLA decision.
date required under § 250.1475(d), BSEE (d) You must pay the penalty as-
will assess you late payment interest sessed within 40 days after:
on the penalty amount at the same (1) You received the Notice of Civil
rate interest is assessed under 30 CFR Penalty, if you did not request a hear-
1218.54. ing on the record under either § 250.1454,
§ 250.1456, § 250.1462, or § 250.1464;
§ 250.1472 How will the Office of Hear-
ings and Appeals conduct the hear- (2) You received an Administrative
ing on the record? Law Judge’s decision under § 250.1472, if
you obtained a stay of the accrual of
If you request a hearing on the
record under §§ 250.1454, 250.1456, penalties pending the hearing on the
250.1462, or 250.1464, the hearing will be record under § 250.1455(b) or § 250.1463(b)
conducted by a Departmental Adminis- and did not appeal the Administrative
trative Law Judge from the Office of Law Judge’s determination to the
Hearings and Appeals. After the hear- IBLA under § 250.1473;
ing, the Administrative Law Judge will (3) You received an IBLA decision
issue a decision in accordance with the under § 250.1473 if the IBLA continued
evidence presented and applicable law. the stay of accrual of penalties pending
its decision and you did not seek judi-
§ 250.1473 How may I appeal the Ad- cial review of the IBLA’s decision; or
ministrative Law Judge’s decision? (4) A final non-appealable judgment

If you are adversely affected by the of a court of competent jurisdiction is
Administrative Law Judge’s decision, entered, if you sought judicial review
240
of the IBLA’s decision and the Depart- Subpart O—Well Control and
ment or the appropriate court sus- Production Safety Training
pended compliance with the IBLA’s de-
cision pending the adjudication of the § 250.1500 Definitions.
case.
Terms used in this subpart have the
(e) If you do not pay, that amount is following meaning:
subject to collection under the provi- Contractor and contract personnel
sions of § 250.1477. mean anyone, other than an employee
of the lessee, performing well control,
§ 250.1476 Can BSEE reduce my pen-
alty once it is assessed? deepwater well control, or production
safety duties for the lessee.
Under 30 U.S.C. 1719(g), the Director Deepwater well control means well
or his or her delegate may compromise control when you are using a subsea
or reduce civil penalties assessed under BOP system.
this part. Employee means direct employees of
the lessees who are assigned well con-
§ 250.1477 How may BSEE collect the trol, deepwater well control, or produc-
penalty?
tion safety duties.
(a) BSEE may use all available I or you means the lessee engaged in
means to collect the penalty including, oil, gas, or sulphur operations in the
but not limited to: Outer Continental Shelf (OCS).
(1) Requiring the lease surety, for Lessee means a person who has en-
amounts owed by lessees, to pay the tered into a lease with the United
penalty; States to explore for, develop, and
(2) Deducting the amount of the pen- produce the leased minerals. The term
alty from any sums the United States lessee also includes an owner of oper-
owes to you; and ating rights for that lease and the
(3) Using judicial process to compel BOEM-approved assignee of that lease.
your payment under 30 U.S.C. 1719(k). Periodic means occurring or recurring
(b) If the Department uses judicial at regular intervals. Each lessee must
process, or if you seek judicial review specify the intervals for periodic train-
under § 250.1474 and the court upholds ing and periodic assessment of training
assessment of a penalty, the court needs in their training programs.
shall have jurisdiction to award the Production operations include, but are
amount assessed plus interest assessed not limited to, separation, dehydra-
from the date of the expiration of the tion, compression, sweetening, and me-
90-day period referred to in § 250.1474. tering operations.
The amount of any penalty, as finally Production safety includes measures,
determined, may be deducted from any practices, procedures, and equipment
sum owing to you by the United States. to ensure safe, accident-free, and pollu-
tion-free production operations, as well
CRIMINAL PENALTIES as installation, repair, testing, mainte-
nance, and operation of surface and
§ 250.1480 May the United States subsurface safety equipment.
criminally prosecute me for viola- Well completion/well workover means
tions under Federal oil and gas those operations following the drilling
leases? of a well that are intended to establish
If you commit an act for which a or restore production.
civil penalty is provided at 30 U.S.C. Well-control means methods used to
1719(d) and § 250.1460(b), the United minimize the potential for the well to
States may pursue criminal penalties flow or kick and to maintain control of
as provided at 30 U.S.C. 1720, in addi- the well in the event of flow or a kick.
tion to any authority for prosecution Well-control applies to drilling, well-
completion, well-workover, abandon-
under other statutes.

ment, and well-servicing operations. It
includes measures, practices, proce-
dures and equipment, such as fluid flow
241
§ 250.1501 30 CFR Ch. II (7–1–18 Edition)
monitoring, to ensure safe and environ- ations can perform their assigned du-
mentally protective drilling, comple- ties;
tion, abandonment, and workover oper- (4) Procedures for assessing the train-
ations as well as the installation, re- ing needs of your employees on a peri-
pair, maintenance, and operation of odic basis;
surface and subsea well-control equip- (5) Recordkeeping and documenta-
ment. tion procedures; and
[76 FR 64462, Oct. 18, 2011, as amended at 77 (6) Internal audit procedures.
FR 50896, Aug. 22, 2012] (d) Upon request of the District Man-
ager or Regional Supervisor, you must
§ 250.1501 What is the goal of my train-
ing program? provide:
(1) Copies of training documentation
The goal of your training program for personnel involved in well control,
must be safe and clean OCS operations.
deepwater well control, or production
To accomplish this, you must ensure
safety operations during the past 5
that your employees and contract per-
years; and
sonnel engaged in well control, deep-
water well control, or production safe- (2) A copy of your training plan.
ty operations understand and can prop-
§ 250.1504 May I use alternative train-
erly perform their duties. ing methods?
§ 250.1503 What are my general re- You may use alternative training
sponsibilities for training? methods. These methods may include
(a) You must establish and imple- computer-based learning, films, or
ment a training program so that all of their equivalents. This training should
your employees are trained to com- be reinforced by appropriate dem-
petently perform their assigned well onstrations and ‘‘hands-on’’ training.
control, deepwater well control, and Alternative training methods must be
production safety duties. You must conducted according to, and meet the
verify that your employees understand objectives of, your training plan.
and can perform the assigned well con-
trol, deepwater well control, or produc- § 250.1505 Where may I get training for
tion safety duties. my employees?
(b) If you conduct operations with a You may get training from any
subsea BOP stack, your employees and source that meets the requirements of
contract personnel must be trained in your training plan.
deepwater well control. The trained
employees and contract personnel must § 250.1506 How often must I train my
have a comprehensive knowledge of employees?
deepwater well control equipment,
You determine the frequency of the
practices, and theory.
training you provide your employees.
(c) You must have a training plan
You must do all of the following:
that specifies the type, method(s),
length, frequency, and content of the (a) Provide periodic training to en-
training for your employees. Your sure that employees maintain under-
training plan must specify the meth- standing of, and competency in, well
od(s) of verifying employee under- control, deepwater well control, or pro-
standing and performance. This plan duction safety practices;
must include at least the following in- (b) Establish procedures to verify
formation: adequate retention of the knowledge
(1) Procedures for training employees and skills that employees need to per-
in well control, deepwater well control, form their assigned well control, deep-
or production safety practices; water well control, or production safe-
(2) Procedures for evaluating the ty duties; and
training programs of your contractors; (c) Ensure that your contractors’
(3) Procedures for verifying that all training programs provide for periodic
employees and contractor personnel training and verification of well con-

engaged in well control, deepwater well trol, deepwater well control, or produc-
control, or production safety oper- tion safety knowledge and skills.
242
§ 250.1507 How will BSEE measure ator, contractor, or sub-contractor

training results? company name).
BSEE may periodically assess your
§ 250.1509 What must I do when BSEE
training program, using one or more of administers or requires hands-on,
the methods in this section. simulator, or other types of testing?
(a) Training system audit. BSEE or its
authorized representative may conduct If BSEE or its authorized representa-
a training system audit at your office. tive conducts, or requires you or your
The training system audit will com- contractor to conduct hands-on, simu-
pare your training program against lator, or other types of testing, you
this subpart. You must be prepared to must:
explain your overall training program (a) Allow BSEE or its authorized rep-
and produce evidence to support your resentative to administer or witness
explanation. the testing;
(b) Employee or contract personnel (b) Identify personnel by current po-
interviews. BSEE or its authorized rep- sition, years of experience in present
resentative may conduct interviews at position, years of total oil field experi-
either onshore or offshore locations to ence, and employer’s name (e.g., oper-
inquire about the types of training ator, contractor, or sub-contractor
that were provided, when and where company name); and
this training was conducted, and how (c) Pay for all costs associated with
effective the training was. the testing, excluding salary and travel
(c) Employee or contract personnel test- costs for BSEE personnel.
ing. BSEE or its authorized representa-
tive may conduct testing at either on- § 250.1510 What will BSEE do if my
shore or offshore locations for the pur- training program does not comply
pose of evaluating an individual’s with this subpart?
knowledge and skills in perfecting well
control, deepwater well control, and If BSEE determines that your train-
production safety duties. ing program is not in compliance, we
(d) Hands-on production safety, simu- may initiate one or more of the fol-
lator, or live well testing. BSEE or its au- lowing enforcement actions:
thorized representative may conduct (a) Issue an Incident of Noncompli-
tests at either onshore or offshore loca- ance (INC);
tions. Tests will be designed to evalu- (b) Require you to revise and submit
ate the competency of your employees to BSEE your training plan to address
or contract personnel in performing identified deficiencies;
their assigned well control, deepwater (c) Assess civil/criminal penalties; or
well control, and production safety du- (d) Initiate disqualification proce-
ties. You are responsible for the costs dures.
associated with this testing, excluding
salary and travel costs for BSEE per-
sonnel.
Subpart P—Sulphur Operations
§ 250.1600 Performance standard.
§ 250.1508 What must I do when BSEE
administers written or oral tests? Operations to discover, develop, and
BSEE or its authorized representa- produce sulphur in the OCS shall be in
tive may test your employees or con- accordance with a BOEM-approved Ex-
tract personnel at your worksite or at ploration Plan or Development and
an onshore location. You and your con- Production Plan and shall be con-
tractors must: ducted in a manner to protect against
(a) Allow BSEE or its authorized rep- harm or damage to life (including fish
resentative to administer written or and other aquatic life), property, nat-
oral tests; and ural resources of the OCS including
(b) Identify personnel by current po- any mineral deposits (in areas leased or
sition, years of experience in present not leased), the National security or

position, years of total oil field experi- defense, and the marine, coastal, or
ence, and employer’s name (e.g., oper- human environment.
243
§ 250.1601 30 CFR Ch. II (7–1–18 Edition)
§ 250.1601 Definitions. provisions of 30 CFR 550 subparts A, B,

C, J and N.
Terms used in this subpart shall have
the meanings as defined below: (c) Lessees conducting sulphur oper-
ations in the OCS are also required to
Air line means a tubing string that is
comply with the requirements in the
used to inject air within a sulphur pro-
applicable provisions of subparts D, E,
ducing well to airlift sulphur out of the
F, H, K, and L of this part and the ap-
well.
plicable provisions of 30 CFR 550, sub-
Bleedwater means a mixture of mine
part K, where such provisions specifi-
water or booster water and connate
cally are referenced in this subpart.
water that is produced by a bleedwell.
Bleedwell means a well drilled into a § 250.1603 Determination of sulphur
producing sulphur deposit that is used deposit.
to control the mine pressure generated
by the injection of mine water. (a) Upon receipt of a written request
Brine means the water containing from the lessee, the District Manager
dissolved salt obtained from a brine will determine whether a sulphur de-
well by circulating water into and out posit has been defined that contains
of a cavity in the salt core of a salt sulphur in paying quantities (i.e., sul-
dome. phur in quantities sufficient to yield a
Brine well means a well drilled return in excess of the costs, after com-
through cap rock into the core at a salt pletion of the wells, of producing min-
dome for the purpose of producing erals at the wellheads).
brine. (b) A determination under paragraph
Cap rock means the rock formation, a (a) of this section shall be based upon
body of limestone, anhydride, and/or the following:
gypsum, overlying a salt dome. (1) Core analyses that indicate the
Sulphur deposit means a formation of presence of a producible sulphur de-
rock that contains elemental sulphur. posit (including an assay of elemental
Sulphur production rate means the sulphur);
number of long tons of sulphur pro- (2) An estimate of the amount of re-
duced during a certain period of time, coverable sulphur in long tons over a
usually per day. specified period of time; and
(3) Contour map of the cap rock to-
§ 250.1602 Applicability. gether with isopach map showing the
(a) The requirements of this subpart extent and estimated thickness of the
P are applicable to all exploration, de- sulphur deposit.
velopment, and production operations
§ 250.1604 General requirements.
under an OCS sulphur lease. Sulphur
operations include all activities con- Sulphur lessees shall comply with re-
ducted under a lease for the purpose of quirements of this section when con-
discovery or delineation of a sulphur ducting well-drilling, well-completion,
deposit and for the development and well-workover, or production oper-
production of elemental sulphur. Sul- ations.
phur operations also include activities (a) Equipment movement. The move-
conducted for related purposes. Activi- ment of well-drilling, well-completion,
ties conducted for related purposes in- or well-workover rigs and related
clude, but are not limited to, produc- equipment on and off an offshore plat-
tion of other minerals, such as salt, for form, or from one well to another well
use in the exploration for or the devel- on the same offshore platform, includ-
opment and production of sulphur. The ing rigging up and rigging down, shall
lessee must have obtained the right to be conducted in a safe manner.
produce and/or use these other min- (b) Hydrogen sulfide (H2S). When a
erals. drilling, well-completion, well-
(b) Lessees conducting sulphur oper- workover, or production operation is
ations in the OCS shall comply with being conducted on a well in zones
the requirements of the applicable pro- known to contain H2S or in zones

visions of subparts A, B, C, I, J, M, N, where the presence of H2S is unknown
O, and Q of this part and the applicable (as defined in § 250.490 of this part), the
244
lessee shall take appropriate pre- slipping operation. The results of the
cautions to protect life and property, operational check must be entered in
especially during operations such as the operations log.
dismantling wellhead equipment and
flow lines and circulating the well. The § 250.1605 Drilling requirements.
lessee shall also take appropriate pre- (a) Sulphur leases. Lessees of OCS sul-
cautions when H2S is generated as a re- phur leases shall conduct drilling oper-
sult of sulphur production operations. ations in accordance with §§ 250.1605
The lessee shall comply with the re- through 250.1619 of this subpart and
quirements in § 250.490 of this part as with other requirements of this part,
well as the requirements of this sub- as appropriate.
part. (b) Fitness of drilling unit. (1) Drilling
(c) Welding and burning practices and units shall be capable of withstanding
procedures. All welding, burning, and the oceanographic and meteorological
hot-tapping activities involved in drill- conditions for the proposed season and
ing, well-completion, well-workover or location of operations.
production operations shall be con- (2) Prior to commencing operation,
ducted with properly maintained equip- drilling units shall be made available
ment, trained personnel, and appro- for a complete inspection by the Dis-
priate procedures in order to minimize trict Manager.
the danger to life and property accord- (3) The lessee shall provide informa-
ing to the specific requirements in tion and data on the fitness of the
§§ 250.109 through 250.113 of this part. drilling unit to perform the proposed
(d) Electrical requirements. All elec- drilling operation. The information
trical equipment and systems involved shall be submitted with, or prior to,
in drilling, well-completion, well- the submission of Form BSEE–0123, Ap-
workover, and production operations plication for Permit to Drill (APD), in
shall be designed, installed, equipped, accordance with § 250.1617 of this sub-
protected, operated, and maintained so part. After a drilling unit has been ap-
as to minimize the danger to life and proved by a BSEE district office, the
property in accordance with the re- information required in this paragraph
quirements of § 250.114 of this part. need not be resubmitted unless re-
(e) Structures on fixed OCS platforms. quired by the District Manager or
Derricks, cranes, masts, substructures, there are changes in the equipment
and related equipment shall be se- that affect the rated capacity of the
lected, designed, installed, used, and unit.
maintained so as to be adequate for the (c) Oceanographic, meteorological, and
potential loads and conditions of load- drilling unit performance data. Where
ing that may be encountered during oceanographic, meteorological, and
the operations. Prior to moving equip- drilling unit performance data are not
ment such as a well-drilling, well-com- otherwise readily available, lessees
pletion, or well-workover rig or associ- shall collect and report such data upon
ated equipment or production equip- request to the District Manager. The
ment onto a platform, the lessee shall type of information to be collected and
determine the structural capability of reported will be determined by the Dis-
the platform to safely support the trict Manager in the interests of safety
equipment and operations, taking into in the conduct of operations and the
consideration corrosion protection, structural integrity of the drilling
platform age, and previous stresses. unit.
(f) Traveling-block safety device. All (d) Foundation requirements. When the
drilling units being used for drilling, lessee fails to provide sufficient infor-
well-completion, or well-workover op- mation pursuant to 30 CFR 550.211
erations that have both a traveling through 550.228 and 30 CFR 550.241
block and a crown block must be through 550.262 to support a determina-
equipped with a safety device that is tion that the seafloor is capable of sup-
designed to prevent the traveling block porting a specific bottom-founded drill-
from striking the crown block. The de- ing unit under the site-specific soil and
vice must be checked for proper oper- oceanographic conditions, the District
ation weekly and after each drill-line Manager may require that additional
245
§ 250.1606 30 CFR Ch. II (7–1–18 Edition)
surveys and soil borings be performed ative rights, furnish a copy of the di-
and the results submitted for review rectional survey to that leaseholder.
and evaluation by the District Manager (f) Fixed drilling platforms. Applica-
before approval is granted for com- tions for installation of fixed drilling
mencing drilling operations. platforms or structures including arti-
(e) Tests, surveys, and samples. (1) Les- ficial islands shall be submitted in ac-
sees shall drill and take cores and/or cordance with the provisions of subpart
run well and mud logs through the ob- I, Platforms and Structures, of this
jective interval to determine the pres- part. Mobile drilling units that have
ence, quality, and quantity of sulphur their jacking equipment removed or
and other minerals (e.g., oil and gas) in have been otherwise immobilized are
the cap rock and the outline of the classified as fixed bottom founded drill-
commercial sulphur deposit. ing platforms.
(2) Inclinational surveys shall be ob- (g) Crane operations. You must oper-
tained on all vertical wells at intervals ate a crane installed on fixed platforms
not exceeding 1,000 feet during the nor- according to § 250.108 of this subpart.
mal course of drilling. Directional sur- (h) Diesel-engine air intakes. Diesel-en-
veys giving both inclination and azi- gine air intakes must be equipped with
muth shall be obtained on all direc- a device to shut down the diesel engine
tionally drilled wells at intervals not in the event of runaway. Diesel engines
exceeding 500 feet during the normal that are continuously attended must
course of drilling and at intervals not be equipped with either remote-oper-
exceeding 200 feet in all planned angle- ated manual or automatic-shutdown
change portions of the borehole. devices. Diesel engines that are not
(3) Directional surveys giving both continuously attended must be
inclination and azimuth shall be ob- equipped with automatic shutdown de-
tained on both vertically and direc- vices.
tionally drilled wells at intervals not
exceeding 500 feet prior to or upon set- § 250.1606 Control of wells.
ting a string of casing, or production The lessee shall take necessary pre-
liner, and at total depth. Composite di- cautions to keep its wells under con-
rectional surveys shall be prepared trol at all times. Operations shall be
with the interval shown from the bot- conducted in a safe and workmanlike
tom of the conductor casing. In calcu- manner. The lessee shall utilize the
lating all surveys, a correction from best available and safest drilling tech-
the true north to Universal-Trans- nologies and state-of-the-art methods
verse-Mercator-Grid-north or Lambert- to evaluate and minimize the potential
Grid-north shall be made after making for a well to flow or kick. The lessee
the magnetic-to-true-north correction. shall utilize personnel who are trained
A composite dipmeter directional sur- and competent and shall utilize and
vey or a composite measurement maintain equipment and materials nec-
while-drilling directional survey will essary to assure the safety and protec-
be acceptable as fulfilling the application of personnel, equipment, natural
ble requirements of this paragraph. resources, and the environment.
(4) Wells are classified as vertical if
the calculated average of inclination § 250.1607 Field rules.
readings weighted by the respective in- When geological and engineering in-
terval lengths between readings from formation in a field enables a District
surface to drilled depth does not exceed Manager to determine specific oper-
3 degrees from the vertical. When the ating requirements, field rules may be
calculated average inclination readings established for drilling, well comple-
weighted by the length of the respec- tion, or well workover on the District
tive interval between readings from the Manager’s initiative or in response to a
surface to drilled depth exceeds 3 de- request from a lessee; such rules may
grees, the well is classified as direc- modify the specific requirements of
tional. this subpart. After field rules have
(5) At the request of a holder of an been established, operations in the

adjoining lease, the Regional Super- field shall be conducted in accordance
visor may, for the protection of correl- with such rules and other requirements
246
of this subpart. Field rules may be and against damage caused by adverse
amended or canceled for cause at any loads, pressures, and fluid flows is not
time upon the initiative of the District jeopardized.
Manager or upon the request of a les- (5) If there are indications of inad-
see. equate cementing (such as lost returns,
cement channeling, or mechanical fail-
§ 250.1608 Well casing and cementing. ure of equipment), the lessee shall
(a) General requirements. (1) For the evaluate the adequacy of the cement-
purpose of this subpart, the several ing operations by pressure testing the
casing strings in order of normal in- casing shoe. If the test indicates inad-
stallation are: equate cementing, the lessee shall ini-
(i) Drive or structural, tiate remedial action as approved by
(ii) Conductor, the District Manager. For cap rock cas-
(iii) Cap rock casing, ing, the test for adequacy of cementing
(iv) Bobtail cap rock casing (required shall be the pressure testing of the an-
when the cap rock casing does not pen- nulus between the cap rock and the
etrate into the cap rock), conductor casings. The pressure shall
(v) Second cap rock casing (brine not exceed 70 percent of the burst pres-
wells), and sure of the conductor casing or 70 per-
(vi) Production liner. cent of the collapse pressure of the cap
(2) The lessee shall case and cement rock casing.
all wells with a sufficient number of
(b) Drive or structural casing. This cas-
strings of casing cemented in a manner
ing shall be set by driving, jetting, or
necessary to prevent release of fluids
drilling to a minimum depth of 100 feet
from any stratum through the wellbore
below the mud line or such other
(directly or indirectly) into the sea,
depth, as may be required or approved
protect freshwater aquifers from con-
tamination, support unconsolidated by the District Manager, in order to
sediments, and otherwise provide a support unconsolidated deposits and to
means of control of the formation pres- provide hole stability for initial drill-
sures and fluids. Cement composition, ing operations. If this portion of the
placement techniques, and waiting hole is drilled, a quantity of cement
time shall be designed and conducted sufficient to fill the annular space back
so that the cement in place behind the to the mud line shall be used.
bottom 500 feet of casing or total (c) Conductor and cap rock casing set-
length of annular cement fill, if less, ting and cementing requirements. (1) Con-
attains a minimum compressive ductor and cap rock casing design and
strength of 160 pounds per square inch setting depths shall be based upon rel-
(psi). evant engineering and geologic factors
(3) The lessee shall install casing de- including the presence or absence of
signed to withstand the anticipated hydrocarbons, potential hazards, and
stresses imposed by tensile, compres- water depths. The proposed casing set-
sive, and buckling loads; burst and col- ting depths may be varied, subject to
lapse pressures; thermal effects; and District Manager approval, to permit
combinations thereof. Safety factors in the casing to be set in a competent for-
the drilling and casing program designs mation or through formations deter-
shall be of sufficient magnitude to pro- mined desirable to be isolated from the
vide well control during drilling and to wellbore by casing for safer drilling op-
assure safe operations for the life of erations. However, the conductor cas-
the well. ing shall be set immediately prior to
(4) In cases where cement has filled drilling into formations known to con-
the annular space back to the mud tain oil or gas or, if unknown, upon en-
line, the cement may be washed out or countering such formations. Cap rock
displaced to a depth not exceeding the casing shall be set and cemented
depth of the structural casing shoe to through formations known to contain
facilitate casing removal upon well oil or gas or, if unknown, upon encoun-
abandonment if the District Manager tering such formations. Upon encoun-

determines that subsurface protection tering unexpected formation pressures,
against damage to freshwater aquifers the lessee shall submit a revised casing
247
§ 250.1609 30 CFR Ch. II (7–1–18 Edition)
program to the District Manager for casing strings below the conductor cas-
approval. ing shall be tested to 500 psi or 0.22 psi/
(2) Conductor casing shall be ce- ft, whichever is greater. (When oil or
mented with a quantity of cement that gas is not present in the cap rock, the
fills the calculated annular space back production liner need not be cemented
to the mud line. Cement fill shall be in place; thus, it would not be subject
verified by the observation of cement to pressure testing.) If the pressure de-
returns. In the event that observation clines more than 10 percent in 30 min-
of cement returns is not feasible, addi- utes or if there is another indication of
tional quantities of cement shall be a leak, the casing shall be recemented,
used to assure fill to the mud line. repaired, or an additional casing string
(3) Cap rock casing shall be cemented run and the casing tested again. The
with a quantity of cement that fills the above procedures shall be repeated
calculated annular space to at least 200 until a satisfactory test is obtained.
feet inside the conductor casing. When The time, conditions of testing, and re-
geologic conditions such as near sur- sults of all casing pressure tests shall
face fractures and faulting exist, cap be recorded in the driller’s report.
rock casing shall be cemented with a (b) After cementing any string of cas-
quantity of cement that fills the cal- ing other than structural, drilling shall
culated annular space to the mud line, not be resumed until there has been a
unless otherwise approved by the Dis- time lapse of at least 8 hours under
trict Manager. In brine wells, the sec- pressure for the conductor casing
ond cap rock casing shall be cemented string or 12 hours under pressure for all
with a quantity of cement that fills the other casing strings. Cement is consid-
calculated annular space to at least 200 ered under pressure if one or more float
feet above the setting depth of the first valves are shown to be holding the ce-
cap rock casing. ment in place or when other means of
(d) Bobtail cap rock casing setting and holding pressure are used.
cementing requirements. (1) Bobtail cap [76 FR 64462, Oct. 18, 2011, as amended at 81
rock casing shall be set on or just in FR 36151, June 6, 2016]
cap rock and lapped a minimum of 100
feet into the previous casing string. § 250.1610 Blowout preventer systems
(2) Sufficient cement shall be used to and system components.
fill the annular space to the top of the (a) General. The blowout preventer
bobtail cap rock casing. (BOP) systems and system components
(e) Production liner setting and cement- shall be designed, installed, used,
ing requirements. (1) Production liners maintained, and tested to assure well
for sulphur wells and bleedwells shall control.
be set in cap rock at or above the bot- (b) BOP stacks. The BOP stacks shall
tom of the open hole (hole that is open consist of an annular preventer and the
in cap rock, below the bottom of the number of ram-type preventers as spec-
cap rock casing) and lapped into the ified under paragraphs (e) and (f) of
previous casing string or to the sur- this section. The pipe rams shall be of
face. For brine wells, the liner shall be proper size to fit the drill pipe in use.
set in salt and lapped into the previous (c) Working pressure. The working-
casing string or to the surface. pressure rating of any BOP shall ex-
(2) The production liner is not re- ceed the surface pressure to which it
quired to be cemented unless the cap may be anticipated to be subjected.
rock contains oil or gas. If the cap rock (d) BOP equipment. All BOP systems
contains oil or gas, sufficient cement shall be equipped and provided with the
shall be used to fill the annular space following:
to the top of the production liner. (1) An accumulator system that pro-
vides sufficient capacity to supply 1.5
§ 250.1609 Pressure testing of casing. times the volume necessary to close
(a) Prior to drilling the plug after ce- and hold closed all BOP equipment
menting, all casing strings, except the units with a minimum pressure of 200
drive or structural casing, shall be psi above the precharge pressure, with-
pressure tested. The conductor casing out assistance from a charging system.
shall be tested to at least 200 psi. All Accumulator regulators supplied by rig
248
air that do not have a secondary source bleed lines together, isolation valves
of pneumatic supply must be equipped shall be installed on each line.
with manual overrides or other devices (8) Valves, pipes, flexible steel hoses,
alternately provided to ensure capa- and other fittings upstream of, and in-
bility of hydraulic operations if rig air cluding, the choke manifold with a
is lost. pressure rating at least as great as the
(2) An automatic backup to the accu- rated working pressure of the ram-type
mulator system. The backup system BOP’s unless otherwise approved by
shall be supplied by a power source the District Manager.
independent from the power source to (9) A wellhead assembly with a rated
the primary accumulator system. The working pressure that exceeds the pres-
automatic backup system shall possess sure to which it might be subjected.
sufficient capability to close the BOP (10) The following system compo-
and hold it closed. nents:
(3) At least one operable remote BOP (i) A kelly cock (an essentially full-
control station in addition to the one opening valve) installed below the
on the drilling floor. This control sta- swivel and a similar valve of such de-
tion shall be in a readily accessible lo- sign that it can be run through the
cation away from the drilling floor. BOP stack installed at the bottom of
(4) A drilling spool with side outlets, the kelly. A wrench to fit each valve
if side outlets are not provided in the shall be stored in a location readily ac-
body of the BOP stack, to provide for cessible to the drilling crew;
separate kill and choke lines. (ii) An inside BOP and an essentially
(5) A choke line and a kill line each full-opening, drill-string safety valve
equipped with two full-opening valves. in the open position on the rig floor at
At least one of the valves on the choke all times while drilling operations are
line and one valve on the kill line shall being conducted. These valves shall be
be remotely controlled, except that a maintained on the rig floor to fit all
check valve may be installed on the connections that are in the drill string.
kill line in lieu of the remotely con- A wrench to fit the drill-string safety
trolled valve, provided that two readily valve shall be stored in a location read-
accessible manual valves are in place ily accessible to the drilling crew;
and the check valve is placed between (iii) A safety valve available on the
the manual valve and the pump. rig floor assembled with the proper
(6) A fill-up line above the uppermost connection to fit the casing string
preventer. being run in the hole; and
(7) A choke manifold designed with (iv) Locking devices installed on the
consideration of anticipated pressures ram-type preventers.
to which it may be subjected, method (e) BOP requirements. Prior to drilling
of well control to be employed, sur- below cap rock casing, a BOP system
rounding environment, and corrosive- shall be installed consisting of at least
ness, volume, and abrasiveness of three remote-controlled, hydraulically
fluids. The choke manifold shall also operated BOP’s including at least one
meet the following requirements: equipped with pipe rams, one with
(i) Manifold and choke equipment blind rams, and one annular type.
subject to well and/or pump pressure (f) Tapered drill-string operations.
shall have a rated working pressure at Prior to commencing tapered drill-
least as great as the rated working string operations, the BOP stack shall
pressure of the ram-type BOP’s or as be equipped with conventional and/or
otherwise approved by the District variable-bore pipe rams to provide ei-
Manager; ther of the following:
(ii) All components of the choke (1) One set of variable bore rams ca-
manifold system shall be protected pable of sealing around both sizes in
from freezing by heating, draining, or the string and one set of blind rams, or
filling with proper fluids; and (2) One set of pipe rams capable of
(iii) When buffer tanks are installed sealing around the larger size string,
downstream of the choke assemblies provided that blind-shear ram capa-
for the purpose of manifolding the bility is present, and crossover subs to
249
§ 250.1611 30 CFR Ch. II (7–1–18 Edition)
the larger size pipe are readily avail- shear rams greater than necessary to
able on the rig floor. indicate proper operation of the rams
is not required;
§ 250.1611 Blowout preventer systems (5) Variable bore-pipe rams shall be
tests, actuations, inspections, and
maintenance. pressure tested against all sizes of pipe
in use, excluding drill collars and
(a) Prior to conducting high-pressure bottomhole tools; and
tests, all BOP systems shall be tested
(6) Following the disconnection or re-
to a pressure of 200 to 300 psi.
pair of any well-pressure containment
(b) Ram-type BOP’s and the choke
seal in the wellhead/BOP stack assem-
manifold shall be pressure tested with
water to rated working pressure or as bly. In this situation, the pressure
otherwise approved by the District tests may be limited to the affected
Manager. Annular type BOP’s shall be component.
pressure tested with water to 70 per- (e) All BOP systems shall be in-
cent of rated working pressure or as spected and maintained to assure that
otherwise approved by the District the equipment will function properly.
Manager. The BOP systems shall be visually in-
(c) In conjunction with the weekly spected at least once each day. The
pressure test of BOP systems required manufacturer’s recommended inspec-
in paragraph (d) of this section, the tion and maintenance procedures are
choke manifold valves, upper and lower acceptable as guidelines in complying
kelly cocks, and drill-string safety with this requirement.
valves shall be pressure tested to pipe- (f) The lessee shall record pressure
ram test pressures. Safety valves with conditions during BOP tests on pres-
proper casing connections shall be ac- sure charts, unless otherwise approved
tuated prior to running casing. by the District Manager. The test dura-
(d) BOP system shall be pressure tion for each BOP component tested
tested as follows: shall be sufficient to demonstrate that
(1) When installed;
the component is effectively holding
(2) Before drilling out each string of
pressure. The charts shall be certified
casing or before continuing operations
as correct by the operator’s representa-
in cases where cement is not drilled
out; tive at the facility.
(3) At least once each week, but not (g) The time, date, and results of all
exceeding 7 days between pressure pressure tests, actuations, inspections,
tests, alternating between control sta- and crew drills of the BOP system and
tions. If either control system is not system components shall be recorded
functional, further drilling operations in the driller’s report. The BOP tests
shall be suspended until that system shall be documented in accordance
becomes operable. A period of more with the following:
than 7 days between BOP tests is al- (1) The documentation shall indicate
lowed when there is a stuck drill pipe the sequential order of BOP and auxil-
or there are pressure control oper- iary equipment testing and the pres-
ations and remedial efforts are being sure and duration of each test. As an
performed, provided that the pressure alternate, the documentation in the
tests are conducted as soon as possible driller’s report may reference a BOP
and before normal operations resume. test plan that contains the required in-
The date, time, and reason for post- formation and is retained on file at the
poning pressure testing shall be en- facility.
tered into the driller’s report. Pressure
(2) The control station used during
testing shall be performed at intervals
the test shall be identified in the
to allow each drilling crew to operate
driller’s report.
the equipment. The weekly pressure
test is not required for blind and blind- (3) Any problems or irregularities ob-
shear rams; served during BOP and auxiliary equip-
(4) Blind and blind-shear rams shall ment testing and any actions taken to
be actuated at least once every 7 days. remedy such problems or irregularities
Closing pressure on the blind and blind- shall be noted in the driller’s report.
250
(4) Documentation required to be en- (c) For drilling operations conducted

tered in the driller’s report may in- with a surface wellhead configuration,
stead be referenced in the driller’s re- the following shall apply:
port. All records, including pressure (1) If the diverter system utilizes
charts, driller’s report, and referenced only one spool outlet, branch lines
documents, pertaining to BOP tests, shall be installed to provide downwind
actuations, and inspections, shall be diversion capability, and
available for BSEE review at the facil- (2) No spool outlet or diverter line in-
ity for the duration of the drilling ac- ternal diameter shall be less than 10
tivity. Following completion of the inches, except that dual spool outlets
drilling activity, all drilling records are acceptable if each outlet has a min-
shall be retained for a period of 2 years imum internal diameter of 8 inches,
at the facility, at the lessee’s field of- and both outlets are piped to overboard
fice nearest the OCS facility, or at an- lines and that each line downstream of
other location conveniently available the changeover nipple at the spool has
to the District Manager. a minimum internal diameter of 10
inches.
§ 250.1612 Well-control drills. (d) The diverter sealing element and
Well-control drills must be conducted diverter valves shall be pressure tested
for each drilling crew in accordance to a minimum of 200 psi when nippled
with the requirements set forth in upon conductor casing. No more than 7
§ 250.711 or as approved by the District days shall elapse between subsequent
Manager. pressure tests. The diverter sealing ele-
[81 FR 26037, Apr. 29, 2016] ment, diverter valves, and diverter con-
trol systems (including the remote)
§ 250.1613 Diverter systems. shall be actuation tested, and the di-
verter lines shall be tested for flow
(a) When drilling a conductor or cap
rock hole, all drilling units shall be prior to spudding and thereafter at
equipped with a diverter system con- least once each 24-hour period alter-
sisting of a diverter sealing element, nating between control stations. All
diverter lines, and control systems. test times and results shall be recorded
The diverter system shall be designed, in the driller’s report.
installed, and maintained so as to di- § 250.1614 Mud program.
vert gases, water, mud, and other ma-
terials away from the facilities and (a) The quantities, characteristics,
personnel. use, and testing of drilling mud and the
(b) The diverter system shall be related drilling procedures shall be de-
equipped with remote-control valves in signed and implemented to prevent the
the flow lines that can be operated loss of well control.
from at least one remote-control sta- (b) The lessee shall comply with re-
tion in addition to the one on the drill- quirements concerning mud control,
ing floor. Any valve used in a diverter mud test and monitoring equipment,
system shall be full opening. No man- mud quantities, and safety precautions
ual or butterfly valves shall be in- in enclosed mud handling areas as pre-
stalled in any part of a diverter sys- scribed in §§ 250.455 through 250.459 of
tem. There shall be a minimum number this part, except that the installation
of turns in the vent line(s) downstream of an operable degasser in the mud sys-
of the spool outlet flange, and the ra- tem as required in § 250.456(g) is not re-
dius of curvature of turns shall be as quired for sulphur operations.
large as practicable. Flexible hose may
be used for diversion lines instead of § 250.1615 Securing of wells.
rigid pipe if the flexible hose has inte- A downhole-safety device such as a
gral end couplings. The entire diverter cement plug, bridge plug, or packer
system shall be firmly anchored and shall be timely installed when drilling
supported to prevent whipping and vi- operations are interrupted by events
brations. All diverter control equip- such as those that force evacuation of
ment and lines shall be protected from the drilling crew, prevent station keep-
physical damage from thrown and falling, or require repairs to major drilling
ing objects. units or well-control equipment. The
251
§ 250.1616 30 CFR Ch. II (7–1–18 Edition)
use of blind-shear rams or pipe rams and subsurface location of the well to
and an inside BOP may be approved by be drilled and of all the wells pre-
the District Manager in lieu of the viously drilled in the vicinity from
above requirements if cap rock casing which information is available. For de-
has been set. velopment wells on a lease, the wells
previously drilled in the vicinity need
§ 250.1616 Supervision, surveillance, not be shown on the plat. Locations
and training. shall be indicated in feet from the
(a) The lessee shall provide onsite su- nearest block line;
pervision of drilling operations at all (2) The design criteria considered for
times. the well and for well control, including
(b) From the time drilling operations the following:
are initiated and until the well is com- (i) Pore pressure;
pleted or abandoned, a member of the (ii) Formation fracture gradients;
drilling crew or the toolpusher shall (iii) Potential lost circulation zones;
maintain rig-floor surveillance con- (iv) Mud weights;
tinuously, unless the well is secured (v) Casing setting depths;
with BOP’s, bridge plugs, packers, or (vi) Anticipated surface pressures
cement plugs. (which for purposes of this section are
(c) Lessee and drilling contractor defined as the pressure that can rea-
personnel shall be trained and qualified sonably be expected to be exerted upon
in accordance with the provisions of a casing string and its related wellhead
subpart O of this part. Records of spe- equipment). In the calculation of an-
cific training that lessee and drilling ticipated surface pressure, the lessee
contractor personnel have successfully shall take into account the drilling,
completed, the dates of completion, completion, and producing conditions.
and the names and dates of the courses The lessee shall consider mud densities
shall be maintained at the drill site. to be used below various casing strings,
fracture gradients of the exposed for-
§ 250.1617 Application for permit to mations, casing setting depths, and ce-
drill. menting intervals, total well depth,
(a) Before drilling a well under a formation fluid type, and other perti-
BOEM-approved Exploration Plan, De- nent conditions. Considerations for cal-
velopment and Production Plan, or De- culating anticipated surface pressure
velopment Operations Coordination may vary for each segment of the well.
Document, you must file Form BSEE– The lessee shall include as a part of the
0123, APD, with the District Manager statement of anticipated surface pres-
for approval. The submission of your sure the calculations used to determine
APD must be accompanied by payment this pressure during the drilling phase
of the service fee listed in § 250.125. Be- and the completion phase, including
fore starting operations, you must re- the anticipated surface pressure used
ceive written approval from the Dis- for production string design; and
trict Manager unless you received oral (vii) If a shallow hazards site survey
approval under § 250.140. is conducted, the lessee shall submit
(b) An APD shall include rated capac- with or prior to the submittal of the
ities of the proposed drilling unit and APD, two copies of a summary report
of major drilling equipment. After a describing the geological and manmade
drilling unit has been approved for use conditions present. The lessee shall
in a BSEE district, the information also submit two copies of the site maps
need not be resubmitted unless re- and data records identified in the sur-
quired by the District Manager or vey strategy.
there are changes in the equipment (3) A BOP equipment program includ-
that affect the rated capacity of the ing the following:
unit. (i) The pressure rating of BOP equip-
(c) An APD shall include a fully comment,
pleted Form BSEE–0123 and the fol- (ii) A schematic drawing of the di-
lowing: verter system to be used (plan and ele-

(1) A plat, drawn to a scale of 2,000 vation views) showing spool outlet in-
feet to the inch, showing the surface ternal diameter(s); diverter line
252
lengths and diameters, burst strengths, § 250.125. Before starting operations as-
and radius of curvature at each turn; sociated with the change, you must re-
valve type, size, working-pressure rat- ceive written approval from the Dis-
ing, and location; the control instru- trict Manager unless you received oral
mentation logic; and the operating pro- approval under § 250.140.
cedure to be used by personnel, and (b) The Form BSEE–0124 submittal
(iii) A schematic drawing of the BOP shall contain a detailed statement of
stack showing the inside diameter of the proposed work that will materially
the BOP stack and the number of annu- change from the work described in the
lar, pipe ram, variable-bore pipe ram, approved APD. Information submitted
blind ram, and blind-shear ram pre- shall include the present state of the
venters. well, including the production liner
(4) A casing program including the and last string of casing, the well depth
following: and production zone, and the well’s ca-
(i) Casing size, weight, grade, type of pability to produce. Within 30 days
connection and setting depth, and after completion of the work, a subse-
(ii) Casing design safety factors for quent detailed report of all the work
tension, collapse, and burst with the done and the results obtained shall be
assumptions made to arrive at these submitted.
values. (c) Public information copies of Form
(5) The drilling prognosis including BSEE–0124 shall be submitted in ac-
the following: cordance with § 250.186 of this part.
(i) Estimated coring intervals,
(ii) Estimated depths to the top of § 250.1619 Well records.
significant marker formations, and (a) Complete and accurate records for
(iii) Estimated depths at which en- each well and all well operations shall
counters with fresh water, sulphur, oil, be retained for a period of 2 years at
gas, or abnormally pressured water are the lessee’s field office nearest the OCS
expected. facility or at another location conven-
(6) A cementing program including iently available to the District Man-
type and amount of cement in cubic ager. The records shall contain a de-
feet to be used for each casing string; scription of any significant malfunc-
(7) A mud program including the tion or problem; all the formations
minimum quantities of mud and mud penetrated; the content and character
materials, including weight materials, of sulphur in each formation if cored
to be kept at the site; and analyzed; the kind, weight, size,
(8) A directional survey program for grade, and setting depth of casing; all
directionally drilled wells; well logs and surveys run in the
(9) An H2S Contingency Plan, if appli- wellbore; and all other information re-
cable, and if not previously submitted; quired by the District Manager in the
and interests of resource evaluation, pre-
(10) Such other information as may vention of waste, conservation of nat-
be required by the District Manager. ural resources, protection of correl-
(d) Public information copies of the ative rights, safety of operations, and
APD shall be submitted in accordance environmental protection.
with § 250.186 of this part. (b) When drilling operations are sus-
pended or temporarily prohibited under
§ 250.1618 Application for permit to the provisions of § 250.170 of this part,
modify. the lessee shall, within 30 days after
(a) You must submit requests for termination of the suspension or tem-
changes in plans, changes in major porary prohibition or within 30 days
drilling equipment, proposals to deep- after the completion of any activities
en, sidetrack, complete, workover, or related to the suspension or prohibi-
plug back a well, or engage in similar tion, transmit to the District Manager
activities to the District Manager on duplicate copies of the records of all
Form BSEE–0124, Application for Per- activities related to and conducted dur-
mit to Modify (APM). The submission ing the suspension or temporary prohi-
of your APM must be accompanied by bition on, or attached to, Form BSEE–
payment of the service fee listed in 0125, End of Operations Report, or
253
§ 250.1620 30 CFR Ch. II (7–1–18 Edition)
Form BSEE–0124, Application for Per- § 250.1621 Crew instructions.

mit to Modify, as appropriate.
Prior to engaging in well-completion
(c) Upon request by the District Man- or well-workover operations, crew
ager or Regional Supervisor, the lessee members shall be instructed in the
shall furnish the following: safety requirements of the operations
(1) Copies of the records of any of the to be performed, possible hazards to be
well operations specified in paragraph encountered, and general safety consid-
(a) of this section; erations to protect personnel, equip-
(2) Copies of the driller’s report at a ment, and the environment. Date and
frequency as determined by the Dis- time of safety meetings shall be re-
trict Manager. Items to be reported in- corded and available for BSEE review.
clude spud dates, casing setting depths,
cement quantities, casing characteris- § 250.1622 Approvals and reporting of
tics, mud weights, lost returns, and well-completion and well-workover
any unusual activities; and operations.
(3) Legible, exact copies of reports on (a) No well-completion or well-
cementing, acidizing, analyses of cores, workover operation shall begin until
testing, or other similar services. the lessee receives written approval
(d) As soon as available, the lessee from the District Manager. Approval
shall transmit copies of logs and charts for such operations shall be requested
developed by well-logging operations, on Form BSEE–0124. Approvals by the
directional-well surveys, and core anal- District Manager shall be based upon a
yses. Composite logs of multiple runs determination that the operations will
and directional-well surveys shall be be conducted in a manner to protect
transmitted to the District Manager in against harm or damage to life, prop-
duplicate as soon as available but not erty, natural resources of the OCS, in-
later than 30 days after completion of cluding any mineral deposits, the Na-
such operations for each well. tional security or defense, or the ma-
(e) If the District Manager deter- rine, coastal, or human environment.
mines that circumstances warrant, the (b) The following information shall
lessee shall submit any other reports be submitted with Form BSEE–0124 (or
and records of operations in the man- with Form BSEE–0123):
ner and form prescribed by the District (1) A brief description of the well-
Manager. completion or well-workover proce-
dures to be followed;
§ 250.1620 Well-completion and well- (2) When changes in existing sub-
workover requirements. surface equipment are proposed, a sche-
(a) Lessees shall conduct well-com- matic drawing showing the well equip-
ment; and
pletion and well-workover operations
in sulphur wells, bleedwells, and brine (3) Where the well is in zones known
wells in accordance with §§ 250.1620 to contain H2S or zones where the pres-
ence of H2S is unknown, a description
through 250.1626 of this part and other
of the safety precautions to be imple-
provisions of this part as appropriate
mented.
(see §§ 250.501 and 250.601 of this part for
(c)(1) Within 30 days after comple-
the definition of well-completion and
tion, Form BSEE–0125, including a
well-workover operations).
schematic of the tubing and the results
(b) Well-completion and well- of any well tests, shall be submitted to
workover operations shall be conducted the District Manager.
in a manner to protect against harm or (2) Within 30 days after completing
damage to life (including fish and other the well-workover operation, except
aquatic life), property, natural re- routine operations, Form BSEE–0124
sources of the OCS including any min- shall be submitted to the District Man-
eral deposits (in areas leased and not ager and shall include the results of
leased), the National security or de- any well tests and a new schematic of
fense, or the marine, coastal, or human the well if any subsurface equipment
environment. has been changed.
254
§ 250.1623 Well-control fluids, equip- (b) The minimum BOP stack for well-
ment, and operations. completion operations or for well-
(a) Well-control fluids, equipment, workover operations with the tree re-
and operations shall be designed, uti- moved shall consist of the following:
lized, maintained, and/or tested as nec- (1) Three remote-controlled, hydrau-
essary to control the well in foresee- lically operated preventers including
able conditions and circumstances, in- at least one equipped with pipe rams,
cluding subfreezing conditions. The one with blind rams, and one annular
well shall be continuously monitored type.
during well-completion and well- (2) When a tapered string is used, the
workover operations and shall not be minimum BOP stack shall consist of
left unattended at any time unless the either of the following:
well is shut in and secured; (i) An annular preventer, one set of
(b) The following well-control fluid variable bore rams capable of sealing
equipment shall be installed, main-
around both sizes in the string, and one
tained, and utilized:
set of blind rams; or
(1) A fill-up line above the uppermost
BOP, (ii) An annular preventer, one set of
(2) A well-control fluid-volume meas- pipe rams capable of sealing around the
uring device for determining fluid vol- larger size string, a preventer equipped
umes when filling the hole on trips, with blind-shear rams, and a crossover
and sub to the larger size pipe that shall be
(3) A recording mud-pit-level indi- readily available on the rig floor.
cator to determine mud-pit-volume (c) The BOP systems for well-comple-
gains and losses. This indicator shall tion operations, or for well-workover
include both a visual and an audible operations with the tree removed, shall
warning device. be equipped with the following:
(c) When coming out of the hole with (1) An accumulator system that pro-
drill pipe or a workover string, the an- vides sufficient capacity to supply 1.5
nulus shall be filled with well-control times the volume necessary to close
fluid before the change in fluid level and hold closed all BOP equipment
decreases the hydrostatic pressure 75 units with a minimum pressure of 200
psi or every five stands of drill pipe or psi above the precharge pressure with-
workover string, whichever gives a out assistance from a charging system.
lower decrease in hydrostatic pressure. After February 14, 1992, accumulator
The number of stands of drill pipe or regulators supplied by rig air which do
workover string and drill collars that not have a secondary source of pneu-
may be pulled prior to filling the hole matic supply shall be equipped with
and the equivalent well-control fluid manual overrides or alternately other
volume shall be calculated and posted devices provided to ensure capability of
near the operator’s station. A mechan- hydraulic operations if rig air is lost;
ical, volumetric, or electronic device (2) An automatic backup to the accu-
for measuring the amount of well-con- mulator system supplied by a power
trol fluid required to fill the hole shall source independent from the power
be utilized.
source to the primary accumulator sys-
§ 250.1624 Blowout prevention equip- tem and possessing sufficient capacity
ment. to close all BOP’s and hold them
(a) The BOP system and system com- closed;
ponents and related well-control equip- (3) Locking devices for the pipe-ram
ment shall be designed, used, main- preventers;
tained, and tested in a manner nec- (4) At least one remote BOP-control
essary to assure well control in foresee- station and one BOP-control station on
able conditions and circumstances, in- the rig floor; and
cluding subfreezing conditions. The (5) A choke line and a kill line each
working pressure of the BOP system equipped with two full-opening valves
and system components shall equal or and a choke manifold. One of the
exceed the expected surface pressure to choke-line valves and one of the kill-
which they may be subjected. line valves shall be remotely controlled
255
§ 250.1625 30 CFR Ch. II (7–1–18 Edition)
except that a check valve may be in- proper casing connections shall be ac-
stalled on the kill line in lieu of the re- tuated prior to running casing.
motely-controlled valve provided that (d) BOP system shall be pressure
two readily accessible manual valves tested as follows:
are in place, and the check valve is (1) When installed;
placed between the manual valve and (2) Before drilling out each string of
the pump. casing or before continuing operations
(d) The minimum BOP-stack compo- in cases where cement is not drilled
nents for well-workover operations out;
with the tree in place and performed (3) At least once each week, but not
through the wellhead inside of the sul- exceeding 7 days between pressure
phur line using small diameter jointed tests, alternating between control sta-
pipe (usually 3⁄4 inch to 11⁄4 inch) as a tions. If either control system is not
work string; i.e., small-tubing oper- functional, further drilling operations
ations, shall consist of the following: shall be suspended until that system
(1) For air line changes, the well becomes operable. A period of more
shall be killed prior to beginning oper- than 7 days between BOP tests is al-
ations. The procedures for killing the lowed when there is a stuck drill pipe
well shall be included in the descrip- or there are pressure control oper-
tion of well-workover procedures in ac- ations, and remedial efforts are being
cordance with § 250.1622 of this part. performed, provided that the pressure
Under these circumstances, no BOP tests are conducted as soon as possible
equipment is required. and before normal operations resume.
The time, date, and reason for post-
(2) For other work inside of the sul-
poning pressure testing shall be en-
phur line, a tubing stripper or annular
tered into the driller’s report. Pressure
preventer shall be installed prior to be-
testing shall be performed at intervals
ginning work.
to allow each drilling crew to operate
(e) An essentially full-opening, work- the equipment. The weekly pressure
string safety valve shall be maintained test is not required for blind and blind-
on the rig floor at all times during shear rams;
well-completion operations. A wrench (4) Blind and blind-shear rams shall
to fit the work-string safety valve shall be actuated at least once every 7 days.
be readily available. Proper connec- Closing pressure on the blind and blind-
tions shall be readily available for in- shear rams greater than necessary to
serting a safety valve in the work indicate proper operation of the rams
string. is not required;
(5) Variable bore-pipe rams shall be
§ 250.1625 Blowout preventer system
testing, records, and drills. pressure tested against all sizes of pipe
in use, excluding drill collars and
(a) Prior to conducting high-pressure bottomhole tools; and
tests, all BOP systems shall be tested (6) Following the disconnection or re-
to a pressure of 200 to 300 psi. pair of any well-pressure containment
(b) Ram-type BOP’s and the choke seal in the wellhead/BOP stack assem-
manifold shall be pressure tested with bly, the pressure tests may be limited
water to a rated working pressure or as to the affected component.
otherwise approved by the District (e) All personnel engaged in well-
Manager. Annular type BOP’s shall be completion operations shall participate
pressure tested with water to 70 per- in a weekly BOP drill to familiarize
cent of rated working pressure or as crew members with appropriate safety
otherwise approved by the District measures.
Manager. (f) The lessee shall record pressure
(c) In conjunction with the weekly conditions during BOP tests on pres-
pressure test of BOP systems required sure charts, unless otherwise approved
in paragraph (d) of this section, the by the District Manager. The test dura-
choke manifold valves, upper and lower tion for each BOP component tested
kelly cocks, and drill-string safety shall be sufficient to demonstrate that

valves shall be pressure tested to pipe- the component is effectively holding
ram test pressures. Safety valves with pressure. The charts shall be certified
256
as correct by the operator’s representa- with the approved Development and

tive at the facility. Production Plan requirements of
(g) The time, date, and results of all §§ 250.1627 through 250.1634 of this sub-
pressure tests, actuations, inspections, part and requirements of this part, as
and crew drills of the BOP system and appropriate.
system components shall be recorded (b) Production safety equipment
in the operations log. The BOP tests shall be designed, installed, used,
shall be documented in accordance maintained, and tested in a manner to
with the following: assure the safety of operations and pro-
(1) The documentation shall indicate tection of the human, marine, and
the sequential order of BOP and auxil- coastal environments.
iary equipment testing and the pres-
sure and duration of each test. As an § 250.1628 Design, installation, and op-
alternate, the documentation in the eration of production systems.
operations log may reference a BOP (a) General. All production facilities
test plan that contains the required in- shall be designed, installed, and main-
formation and is retained on file at the tained in a manner that provides for ef-
facility. ficiency and safety of operations and
(2) The control station used during
protection of the environment.
the test shall be identified in the oper-
(b) Approval of design and installation
ations log.
(3) Any problems or irregularities ob- features for sulphur production facilities.
served during BOP and auxiliary equip- Prior to installation, the lessee shall
ment testing and any actions taken to submit a sulphur production system
remedy such problems or irregularities application, in duplicate, to the Dis-
shall be noted in the operations log. trict Manager for approval. The appli-
(4) Documentation required to be en- cation shall include information rel-
tered in the driller’s report may in- ative to the proposed design and instal-
stead be referenced in the driller’s relation features. Information con-
port. All records, including pressure cerning approved design and installa-
charts, driller’s report, and referenced tion features shall be maintained by
documents, pertaining to BOP tests, the lessee at the lessee’s offshore field
actuations, and inspections shall be office nearest the OCS facility or at an-
available for BSEE review at the facil- other location conveniently available
ity for the duration of the drilling ac- to the District Manager. All approvals
tivity. Following completion of the are subject to field verification. The
drilling activity, all drilling records application shall include the following:
shall be retained for a period of 2 years (1) A schematic flow diagram show-
at the facility, at the lessee’s field of- ing size, capacity, design, working
fice nearest the OCS facility, or at an- pressure of separators, storage tanks,
other location conveniently available compressor pumps, metering devices,
to the District Manager. and other sulphur-handling vessels;
(2) A schematic piping diagram show-
§ 250.1626 Tubing and wellhead equip- ing the size and maximum allowable
ment. working pressures as determined in ac-
(a) No tubing string shall be placed cordance with API RP 14E, Rec-
into service or continue to be used un- ommended Practice for Design and In-
less such tubing string has the nec- stallation of Offshore Production Plat-
essary strength and pressure integrity form Piping Systems (as incorporated
and is otherwise suitable for its in- by reference in § 250.198);
tended use. (3) Electrical system information in-
(b) Wellhead, tree, and related equip- cluding a plan of each platform deck,
ment shall be designed, installed, test- outlining all hazardous areas classified
ed, used, and maintained so as to according to API RP 500, Rec-
achieve and maintain pressure control. ommended Practice for Classification
of Locations for Electrical Installa-
§ 250.1627 Production requirements. tions at Petroleum Facilities Classified

(a) The lessee shall conduct sulphur as Class I, Division 1 and Division 2, or
production operations in compliance API RP 505, Recommended Practice for
257
§ 250.1628 30 CFR Ch. II (7–1–18 Edition)
Classification of Locations for Elec- and other hydrocarbon-handling ves-

trical Installations at Petroleum Fa- sels;
cilities Classified as Class I, Zone 0, (2) A schematic flow diagram (API
Zone 1, and Zone 2 (as incorporated by RP 14C, Figure E1, as incorporated by
reference in § 250.198), and outlining reference in § 250.198) and the related
areas in which potential ignition Safety Analysis Function Evaluation
sources are to be installed; chart (API RP 14C, subsection 4.3c, as
(4) Certification that the design for incorporated by reference in § 250.198).
the mechanical and electrical systems (3) A schematic piping diagram show-
to be installed were approved by reg- ing the size and maximum allowable
istered professional engineers. After working pressures as determined in ac-
these systems are installed, the lessee cordance with API RP 14E, Design and
shall submit a statement to the Dis- Installation of Offshore Production
trict Manager certifying that the new Platform Piping Systems (as incor-
installations conform to the approved porated by reference in § 250.198);
designs of this subpart. (4) Electrical system information in-
(c) Hydrocarbon handling vessels asso- cluding the following:
ciated with fuel gas system. You must (i) A plan of each platform deck, out-
protect hydrocarbon handling vessels lining all hazardous areas classified ac-
associated with the fuel gas system cording to API RP 500, Recommended
with a basic and ancillary surface safe- Practice for Classification of Locations
ty system. This system must be de- for Electrical Installations at Petro-
leum Facilities Classified as Class I,
signed, analyzed, installed, tested, and
Division 1 and Division 2, or API RP
maintained in operating condition in
505, Recommended Practice for Classi-
accordance with API RP 14C, Analysis,
fication of Locations for Electrical In-
Design, Installation, and Testing of
stallations at Petroleum Facilities
Basic Surface Safety Systems for Off-
Classified as Class I, Zone 0, Zone 1,
shore Production Platforms (as incor-
and Zone 2 (as incorporated by ref-
porated by reference in § 250.198). If
erence in § 250.198), and outlining areas
processing components are to be uti-
in which potential ignition sources are
lized, other than those for which Safe-
to be installed;
ty Analysis Checklists are included in
(ii) All significant hydrocarbon
API RP 14C, you must use the analysis sources and a description of the type of
technique and documentation specified decking, ceiling, walls (e.g., grating or
therein to determine the effect and re- solid), and firewalls; and
quirements of these components upon (iii) Elementary electrical schematic
the safety system. of any platform safety shutdown sys-
(d) Approval of safety-systems design tem with a functional legend.
and installation features for fuel gas sys- (5) Certification that the design for
tem. Prior to installation, the lessee the mechanical and electrical systems
shall submit a fuel gas safety system to be installed was approved by reg-
application, in duplicate, to the Dis- istered professional engineers. After
trict Manager for approval. The appli- these systems are installed, the lessee
cation shall include information rel- shall submit a statement to the Dis-
ative to the proposed design and instal- trict Manager certifying that the new
lation features. Information con- installations conform to the approved
cerning approved design and installa- designs of this subpart; and
tion features shall be maintained by (6) Design and schematics of the in-
the lessee at the lessee’s offshore field stallation and maintenance of all fire-
office nearest the OCS facility or at an- and gas-detection systems including
other location conveniently available the following:
to the District Manager. All approvals (i) Type, location, and number of de-
are subject to field verification. The tection heads;
application shall include the following: (ii) Type and kind of alarm, including
(1) A schematic flow diagram show- emergency equipment to be activated;
ing size, capacity, design, working (iii) Method used for detection;
pressure of separators, storage tanks, (iv) Method and frequency of calibra-
compressor pumps, metering devices, tion; and
258
(v) A functional block diagram of the er, above the highest operating pres-
detection system, including the elec- sure of the vessel. This setting shall
tric power supply. also be set sufficiently below (15 per-
cent or 5 psi, whichever is greater) the
§ 250.1629 Additional production and safety relief valve’s set pressure to as-
fuel gas system requirements. sure that the high-pressure sensor
(a) General. Lessees shall comply sounds an alarm before the safety relief
with the following production safety valve starts relieving. The low-pressure
system requirements (some of which sensor shall sound an alarm no lower
are in addition to those contained in than 15 percent or 5 psi, whichever is
§ 250.1628 of this part). greater, below the lowest pressure in
(b) Design, installation, and operation the operating range.
of additional production systems, includ- (2) Engine exhaust. You must equip
ing fuel gas handling safety systems. (1) engine exhausts to comply with the in-
Pressure and fired vessels must be de- sulation and personnel protection re-
signed, fabricated, and code stamped in quirements of API RP 14C, section
accordance with the applicable provi- 4.2c(4) (as incorporated by reference in
sions of sections I, IV, and VIII of the § 250.198). Exhaust piping from diesel
American Society of Mechanical Engi- engines must be equipped with spark
neers (ASME) Boiler and Pressure Ves- arresters.
sel Code (as specified in § 250.198). Pres- (3) Firefighting systems. Firefighting
sure and fired vessels must have main- systems must conform to subsection
tenance inspection, rating, repair, and 5.2, Fire Water Systems, of API RP
alteration performed in accordance 14G, Recommended Practice for Fire
with the applicable provisions of API Prevention and Control on Open Type
Pressure Vessel Inspections Code: In- Offshore Production Platforms (as in-
Service Inspection, Rating, Repair, and corporated by reference in § 250.198),
Alteration, API 510 (except Sections 5.8
and must be subject to the approval of
and 9.5) (as incorporated by reference
the District Manager. Additional re-
in § 250.198).
quirements must apply as follows:
(i) Pressure safety relief valves shall
be designed, installed, and maintained (i) A firewater system consisting of
in accordance with applicable provi- rigid pipe with firehose stations shall
sions of sections I, IV, and VIII of the be installed. The firewater system shall
ANSI/ASME Boiler and Pressure Vessel be installed to provide needed protec-
Code (as specified in § 250.198). The safe- tion, especially in areas where fuel
ty relief valves shall conform to the handling equipment is located.
valve-sizing and pressure-relieving re- (ii) Fuel or power for firewater pump
quirements specified in these docu- drivers shall be available for at least 30
ments; however, the safety relief valves minutes of run time during platform
shall be set no higher than the max- shut-in time. If necessary, an alternate
imum-allowable working pressure of fuel or power supply shall be installed
the vessel. All safety relief valves and to provide for this pump-operating
vents shall be piped in such a way as to time unless an alternate firefighting
prevent fluid from striking personnel system has been approved by the Dis-
or ignition sources. trict Manager;
(ii) The lessee shall use pressure re- (iii) A firefighting system using
corders to establish the operating pres- chemicals may be used in lieu of a
sure ranges of pressure vessels in order water system if the District Manager
to establish the pressure-sensor set- determines that the use of a chemical
tings. Pressure-recording charts used system provides equivalent fire-protec-
to determine operating pressure ranges tion control; and
shall be maintained by the lessee for a (iv) A diagram of the firefighting sys-
period of 2 years at the lessee’s field of- tem showing the location of all fire-
fice nearest the OCS facility or at an- fighting equipment shall be posted in a
other location conveniently available prominent place on the facility or
to the District Manager. The high-pres- structure.

sure sensor shall be set no higher than (4) Fire- and gas-detection system. (i)
15 percent or 5 psi, whichever is great- Fire (flame, heat, or smoke) sensors
259
§ 250.1630 30 CFR Ch. II (7–1–18 Edition)
shall be installed in all enclosed classi- (c) General platform operations. Safety
fied areas. Gas sensors shall be in- devices shall not be bypassed or
stalled in all inadequately ventilated, blocked out of service unless they are
enclosed classified areas. Adequate temporarily out of service for startup,
ventilation is defined as ventilation maintenance, or testing procedures.
that is sufficient to prevent accumula- Only the minimum number of safety
tion of significant quantities of vapor- devices shall be taken out of service.
air mixture in concentrations over 25 Personnel shall monitor the bypassed
percent of the lower explosive limit. or blocked out functions until the safe-
One approved method of providing ade- ty devices are placed back in service.
quate ventilation is a change of air vol- Any safety device that is temporarily
ume each 5 minutes or 1 cubic foot of out of service shall be flagged by the
air-volume flow per minute per square person taking such device out of serv-
foot of solid floor area, whichever is ice.
greater. Enclosed areas (e.g., buildings,
living quarters, or doghouses) are de- § 250.1630 Safety-system testing and
fined as those areas confined on more records.
than four of their six possible sides by (a) Inspection and testing. You must
walls, floors, or ceilings more restric- inspect and successfully test safety
tive to air flow than grating or fixed system devices at the interval specified
open louvers and of sufficient size to below or more frequently if operating
allow entry of personnel. A classified conditions warrant. Testing must be in
area is any area classified Class I, accordance with API RP 14C, Appendix
Group D, Division 1 or 2, following the D (as incorporated by reference in
guidelines of API RP 500 (as incor- § 250.198). For safety system devices
porated by reference in § 250.198), or any other than those listed in API RP 14C,
area classified Class I, Zone 0, Zone 1, Appendix D, you must utilize the anal-
or Zone 2, following the guidelines of ysis technique and documentation
API RP 505 (as incorporated by ref- specified therein for inspection and
erence in § 205.198). testing of these components, and the
(ii) All detection systems shall be ca- following:
pable of continuous monitoring. Fire-
(1) Safety relief valves on the natural
detection systems and portions of com-
gas feed system for power plant oper-
ations such as pressure safety valves
to the higher gas concentration levels
shall be inspected and tested for oper-
shall be of the manual-reset type. Com-
ation at least once every 12 months.
These valves shall be either bench test-
to the lower gas-concentration level
ed or equipped to permit testing with
may be of the automatic-reset type.
an external pressure source.
(iii) A fuel-gas odorant or an auto-
(2) The following safety devices (ex-
matic gas-detection and alarm system
cluding electronic pressure transmit-
is required in enclosed, continuously
ters and level sensors) must be in-
manned areas of the facility that are
spected and tested at least once each
provided with fuel gas. Living quarters
calendar month, but at no time may
and doghouses not containing a gas
more than 6 weeks elapse between
source and not located in a classified
tests:
area do not require a gas detection sys-
tem. (i) All pressure safety high or pres-
(iv) The District Manager may re- sure safety low, and
quire the installation and maintenance (ii) All level safety high and level
of a gas detector or alarm in any po- safety low controls.
tentially hazardous area. (3) The following electronic pressure
(v) Fire- and gas-detection systems transmitters and level sensors must be
must be an approved type, designed and inspected and tested at least once
installed according to API RP 14C, API every 3 months, but at no time may
RP 14G, and either API RP 14F or API more than 120 days elapse between
RP 14FZ (the preceding four documents tests:

as incorporated by reference in (i) All PSH or PSL, and
§ 250.198). (ii) All LSH and LSL controls.
260
(4) All pumps for firewater systems § 250.1633 Production measurement.

shall be inspected and operated weekly. (a) General. Measurement equipment
(5) All fire- (flame, heat, or smoke) and security procedures shall be de-
and gas-detection systems shall be in- signed, installed, used, maintained, and
spected and tested for operation and re- tested so as to accurately and com-
calibrated every 3 months provided pletely measure the sulphur produced
that testing can be performed in a non- on a lease for purposes of royalty de-
destructive manner. termination.
(6) Prior to the commencement of (b) Application and approval. The les-
production, the lessee shall notify the see shall not commence production of
District Manager when the lessee is sulphur until the Regional Supervisor
ready to conduct a preproduction test has approved the method of measure-
and inspection of the safety system. ment. The request for approval of the
The lessee shall also notify the District method of measurement shall contain
Manager upon commencement of pro- sufficient information to demonstrate
duction in order that a complete in- to the satisfaction of the Regional Su-
spection may be conducted. pervisor that the method of measure-
ment meets the requirements of para-
(b) Records. The lessee shall maintain
graph (a) of this section.
records for a period of 2 years for each
safety device installed. These records § 250.1634 Site security.
shall be maintained by the lessee at
(a) All locations where sulphur is
the lessee’s field office nearest the OCS
produced, measured, or stored shall be
facility or another location conven-
operated and maintained to ensure
iently available to the District Man- against the loss or theft of produced
ager. These records shall be available sulphur and to assure accurate and
for BSEE review. The records shall complete measurement of produced
show the present status and history of sulphur for royalty purposes.
each safety device, including dates and (b) Evidence of mishandling of pro-
details of installation, removal, inspec- duced sulphur from an offshore lease,
tion, testing, repairing, adjustments, or tampering or falsifying any meas-
and reinstallation. urement of production for an offshore
lease, shall be reported to the Regional
§ 250.1631 Safety device training. Supervisor as soon as possible but no
Prior to engaging in production oper- later than the next business day after
ations on a lease and periodically discovery of the evidence of mis-
thereafter, personnel installing, in- handling.
specting, testing, and maintaining
safety devices shall be instructed in Subpart Q—Decommissioning
the safety requirements of the oper- Activities
ations to be performed; possible haz-
ards to be encountered; and general GENERAL
safety considerations to be taken to
§ 250.1700 What do the terms ‘‘decom-
protect personnel, equipment, and the missioning’’, ‘‘obstructions’’, and
environment. Date and time of safety ‘‘facility’’ mean?
meetings shall be recorded and avail-
(a) Decommissioning means:
able for BSEE review.
(1) Ending oil, gas, or sulphur oper-
§ 250.1632 Production rates. ations; and
(2) Returning the lease or pipeline
Each sulphur deposit shall be pro- right-of-way to a condition that meets
duced at rates that will provide eco- the requirements of regulations of
nomic development and depletion of BSEE and other agencies that have ju-
the deposit in a manner that would risdiction over decommissioning ac-
maximize the ultimate recovery of sul- tivities.
phur without resulting in waste (e.g., (b) Obstructions mean structures,
an undue reduction in the recovery of equipment, or objects that were used in

oil and gas from an associated hydro- oil, gas, or sulphur operations or ma-
carbon accumulation). rine growth that, if left in place, would
261
§ 250.1701 30 CFR Ch. II (7–1–18 Edition)
hinder other users of the OCS. Obstruc- (d) Are or become a lessee or the
tions may include, but are not limited owner of operating rights of a lease on
to, shell mounds, wellheads, casing which there is a well that has not been
stubs, mud line suspensions, well pro- permanently plugged according to this
tection devices, subsea trees, jumper subpart, a platform, a lease term pipe-
assemblies, umbilicals, manifolds, terline, or other facility, or an obstruc-
mination skids, production and pipe- tion;
line risers, platforms, templates, pil- (e) Are or become the holder of a
ings, pipelines, pipeline valves, and pipeline right-of-way on which there is
power cables. a pipeline, platform, or other facility,
(c) Facility means any installation or an obstruction; or
other than a pipeline used for oil, gas, (f) Re-enter a well that was pre-
or sulphur activities that is perma- viously plugged according to this sub-
nently or temporarily attached to the part.
seabed on the OCS. Facilities include
production and pipeline risers, tem- § 250.1703 What are the general re-
plates, pilings, and any other facility quirements for decommissioning?
or equipment that constitutes an ob- When your facilities are no longer
struction such as jumper assemblies, useful for operations, you must:
termination skids, umbilicals, anchors, (a) Get approval from the appropriate
and mooring lines. District Manager before decommis-
sioning wells and from the Regional
§ 250.1701 Who must meet the decom- Supervisor before decommissioning
missioning obligations in this sub- platforms and pipelines or other facili-
part? ties;
(a) Lessees and owners of operating (b) Permanently plug all wells. Per-
rights are jointly and severally respon- manently installed packers and bridge
sible for meeting decommissioning ob- plugs must comply with API Spec. 11D1
ligations for facilities on leases, in- (as incorporated by reference in
cluding the obligations related to § 250.198);
lease-term pipelines, as the obligations (c) Remove all platforms and other
accrue and until each obligation is facilities, except as provided in
met. §§ 250.1725(a) and 250.1730.
(b) All holders of a right-of-way are (d) Decommission all pipelines;
jointly and severally liable for meeting (e) Clear the seafloor of all obstruc-
decommissioning obligations for facili- tions created by your lease and pipe-
ties on their right-of-way, including line right-of-way operations;
right-of-way pipelines, as the obliga- (f) Follow all applicable requirements
tions accrue and until each obligation of subpart G of this part; and
is met. (g) Conduct all decommissioning ac-
(c) In this subpart, the terms ‘‘you’’ tivities in a manner that is safe, does
or ‘‘I’’ refer to lessees and owners of op- not unreasonably interfere with other
erating rights, as to facilities installed uses of the OCS, and does not cause
under the authority of a lease, and to undue or serious harm or damage to
right-of-way holders as to facilities in- the human, marine, or coastal environ-
stalled under the authority of a right- ment.
of-way. [76 FR 64462, Oct. 18, 2011, as amended at 81
FR 26037, Apr. 29 2016]
§ 250.1702 When do I accrue decommis-
sioning obligations? § 250.1704 What decommissioning ap-
You accrue decommissioning obliga- plications and reports must I sub-
tions when you do any of the following: mit and when must I submit them?
(a) Drill a well; You must submit decommissioning
(b) Install a platform, pipeline, or applications, receive approval of those
other facility; applications, and submit subsequent
(c) Create an obstruction to other reports according to the requirements

users of the OCS; and deadlines in the following table.
262
DECOMMISSIONING APPLICATIONS AND REPORTS TABLE

Decommissioning applications and re- When to submit Instructions
ports
(a) Initial platform removal application In the Pacific OCS Region or Alaska Include information required under
[not required in the Gulf of Mexico OCS Region, submit the application § 250.1726.
OCS Region]. to the Regional Supervisor at least
2 years before production is pro-
jected to cease.
(b) Final removal application for a plat- Before removing a platform or other Include information required under
form or other facility. facility in the Gulf of Mexico OCS § 250.1727.
Region, or not more than 2 years
after the submittal of an initial plat-
form removal application to the Pa-
cific OCS Region and the Alaska
OCS Region.
(c) Post-removal report for a platform Within 30 days after you remove a Include information required under
or other facility. platform or other facility. § 250.1729.
(d) Pipeline decommissioning applica- Before you decommission a pipeline .. Include information required under
tion. § 250.1751(a) or § 250.1752(a), as applica-
ble.
(e) Post-pipeline decommissioning re- Within 30 days after you decommis- Include information required under
port. sion a pipeline. § 250.1753.
(f) Site clearance report for a platform Within 30 days after you complete site Include information required under
or other facility. clearance verification activities. § 250.1743(b).
(g) Form BSEE–0124, Application for (1) Before you temporarily abandon or (i) Include information required under
Permit to Modify (APM). The submis- permanently plug a well or zone,. §§ 250.1712 and 250.1721.
sion of your APM must be accom- (ii) When using a BOP for abandonment oper-
panied by payment of the service fee ations, include information required under
listed in § 250.125;. § 250.731.
(2) Before you install a subsea protec- Refer to § 250.1722(a).
tive device,.
(3) Before you remove any casing Refer to § 250.1723.
stub or mud line suspension equip-
ment and any subsea protective de-
vice,.
(h) Form BSEE–0125, End of Oper- (1) Within 30 days after you complete Include information required under
ations Report (EOR);. a protective device trawl test,. § 250.1722(d).
(2) Within 30 days after you complete Include information required under
site clearance verification activities,. § 250.1743(a).
(i) A certified summary of expenditures Within 120 days after completion of Submit to the Regional Supervisor a complete
for permanently plugging any well, each decommissioning activity spec- summary of expenditures actually incurred
removal of any platform or other fa- ified in this paragraph. for each decommissioning activity (includ-
cility, clearance of any site after ing, but not limited to, the use of rigs, ves-
wells have been plugged or plat- sels, equipment, supplies and materials;
forms or facilities removed, and de- transportation of any kind; personnel; and
commissioning of pipelines. services). Include in, or attach to, the sum-
mary 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 re-
garding how to submit the certified sum-
mary.
(j) If requested by the Regional Super- Within a reasonable time as deter- The Regional Supervisor will review the sum-
visor, additional information in sup- mined by the Regional Supervisor. mary and may provide specific instructions
port of any decommissioning activity or guidance regarding the submission of
expenditures included in a summary additional information (including, but not
submitted under paragraph (i) of this limited to, copies of contracts and invoices),
section. if requested, to complete or otherwise sup-
port the summary.
[76 FR 64462, Oct. 18, 2011, as amended at 77 FR 50896, Aug. 22, 2012; 80 FR 75810, Dec. 4, 2015;
81 FR 26037, Apr. 29, 2016; 81 FR 80591, Nov. 16, 2016]
263
§ 250.1705 30 CFR Ch. II (7–1–18 Edition)
§ 250.1705 [Reserved] (a) For coiled tubing operations with

the production tree in place, you must
§ 250.1706 Coiled tubing and snubbing meet the following minimum require-
operations. ments for the BOP system:
If you use a BOP for any well aban- (1) BOP system components must be
donment operations, your BOP must in the following order from the top
meet the following requirements: down:
BOP system when expected BOP system when expected BOP system for wells with returns taken through an outlet on
surface pressures are less than surface pressures are greater the BOP stack
or equal to 3,500 psi than 3,500 psi
(i) Stripper or annular-type Stripper or annular-type well- Stripper or annular-type well-control component.
well-control component, control component,
(ii) Hydraulically-operated blind Hydraulically-operated blind Hydraulically-operated blind rams.
rams, rams,.
(iii) Hydraulically-operated Hydraulically-operated shear Hydraulically-operated shear rams.
shear rams, rams,.
(iv) Kill line inlet, Kill line inlet, Kill line inlet.
(v) Hydraulically-operated two- Hydraulically-operated two- Hydraulically-operated two-way slip rams.
way slip rams, way slip rams, Hydraulically-operated pipe rams.
(vi) Hydraulically-operated pipe Hydraulically-operated pipe A flow tee or cross.
rams, rams. Hydraulically-operated pipe rams.
Hydraulically-operated blind- Hydraulically-operated blind-shear rams on wells with surface
shear rams. These rams pressures >3,500 psi. As an option, the pipe rams can be
should be located as close placed below the blind-shear rams. The blind-shear rams
to the tree as practical, should be located as close to the tree as practical.
(2) You may use a set of hydrau- operations with expected surface pres-
lically-operated combination rams for sures greater than 3,500 psi, the kill
the blind rams and shear rams. line must be connected to a pump or
(3) You may use a set of hydrau- manifold. You must not use the kill
lically-operated combination rams for line inlet on the BOP stack for taking
the hydraulic two-way slip rams and fluid returns from the wellbore.
the hydraulically-operated pipe rams. (6) You must have a hydraulic-actu-
(4) You must attach a dual check ating system that provides sufficient
valve assembly to the coiled tubing accumulator capacity to close-open-
connector at the downhole end of the close each component in the BOP
coiled tubing string for all coiled tub- stack. This cycle must be completed
ing well abandonment operations. If with at least 200 psi above the pre-
you plan to conduct operations without charge pressure, without assistance
downhole check valves, you must de- from a charging system.
scribe alternate procedures and equip- (7) All connections used in the sur-
ment in Form BSEE–0124, Application face BOP system from the tree to the
for Permit to Modify, and have it ap- uppermost required ram must be
proved by the BSEE District Manager. flanged, including the connections be-
(5) You must have a kill line and a tween the well-control stack and the
separate choke line. You must equip first full-opening valve on the choke
each line with two full-opening valves line and the kill line.
and at least one of the valves must be (b) The minimum BOP system com-
remotely controlled. You may use a ponents for well abandonment oper-
manual valve instead of the remotely ations with the tree in place and per-
controlled valve on the kill line if you formed by moving tubing or drill pipe
install a check valve between the two in or out of a well under pressure uti-
full-opening manual valves and the lizing equipment specifically designed
pump or manifold. The valves must for that purpose, i.e., snubbing oper-
have a working pressure rating equal ations, must include the following:
to or greater than the working pres- (1) One set of pipe rams hydraulically
sure rating of the connection to which operated, and
they are attached, and you must in- (2) Two sets of stripper-type pipe
stall them between the well-control rams hydraulically operated with spac-
stack and the choke or kill line. For er spool.
264
(c) An inside BOP or a spring-loaded, (c) Maximum possible surface pres-

back-pressure safety valve, and an es- sure, and how it was determined;
sentially full-opening, work-string (d) Type and weight of well-control
safety valve in the open position must fluid you will use;
be maintained on the rig floor at all (e) A description of the work;
times during well abandonment oper- (f) A current and proposed well sche-
ations when the tree is removed or dur- matic and description that includes:
ing well abandonment operations with (1) Well depth;
the tree installed and using small tub-
(2) All perforated intervals that have
ing as the work string. A wrench to fit
not been plugged;
the work-string safety valve must be
readily available. Proper connections (3) Casing and tubing depths and de-
must be readily available for inserting tails;
valves in the work string. The full- (4) Subsurface equipment;
opening safety valve is not required for (5) Estimated tops of cement (and the
coiled tubing or snubbing operations. basis of the estimate) in each casing
annulus;
[77 FR 50897, Aug. 22, 2012, as amended at 81
(6) Plug locations;
FR 26037, Apr. 29, 2016]
(7) Plug types;
§§ 250.1707–250.1709 [Reserved] (8) Plug lengths;
(9) Properties of mud and cement to
PERMANENTLY PLUGGING WELLS be used;
(10) Perforating and casing cutting
§ 250.1710 When must I permanently plans;
plug all wells on a lease?
(11) Plug testing plans;
You must permanently plug all wells (12) Casing removal (including infor-
on a lease within 1 year after the lease mation on explosives, if used);
terminates. (13) Proposed casing removal depth;
and
§ 250.1711 When will BSEE order me to
permanently plug a well? (14) Your plans to protect archae-
ological and sensitive biological fea-
BSEE will order you to permanently tures, including anchor damage during
plug a well if that well: plugging operations, a brief assessment
(a) Poses a hazard to safety or the en- of the environmental impacts of the
vironment; or plugging operations, and the proce-
(b) Is not useful for lease operations dures and mitigation measures you will
and is not capable of oil, gas, or sul- take to minimize such impacts; and
phur production in paying quantities. (g) Certification by a Registered Pro-
§ 250.1712 What information must I fessional Engineer of the well abandon-
submit before I permanently plug a ment design and procedures and that
well or zone? all plugs meet the requirements in the
table in § 250.1715. In addition to the re-
Before you permanently plug a well
quirements of § 250.1715, the Registered
or zone, you must submit form BSEE–
Professional Engineer must also certify
0124, Application for Permit to Modify,
the design will include two independent
to the appropriate District Manager
barriers, one of which must be a me-
and receive approval. A request for ap-
chanical barrier, in the center wellbore
proval must contain the following in-
formation: as described in § 250.420(b)(3). The Reg-
istered Professional Engineer must be
(a) The reason you are plugging the
registered in a State of the United
well (or zone), for completions with
States and have sufficient expertise
production amounts specified by the
Regional Supervisor, along with sub- and experience to perform the certifi-
stantiating information demonstrating cation. You must submit this certifi-
its lack of capacity for further profit- cation with your APM (Form BSEE–
able production of oil, gas, or sulfur; 0124).

(b) Recent well test data and pressure [76 FR 64462, Oct. 18, 2011, as amended at 77
data, if available; FR 50900, Aug. 22, 2012]
265
§ 250.1713 30 CFR Ch. II (7–1–18 Edition)
§ 250.1713 Must I notify BSEE before I § 250.1714 What must I accomplish

begin well plugging operations? with well plugs?
You must notify the appropriate Dis- You must ensure that all well plugs:
trict Manager at least 48 hours before (a) Provide downhole isolation of hy-
beginning operations to permanently drocarbon and sulphur zones;
plug a well. (b) Protect freshwater aquifers; and
(c) Prevent migration of formation
fluids within the wellbore or to the
seafloor.
§ 250.1715 How must I permanently plug a well?

(a) You must permanently plug wells according to the table in this section. The
District Manager may require additional well plugs as necessary.
PERMANENT WELL PLUGGING REQUIREMENTS

If you have . . . Then you must use . . .
(1) Zones in open hole, Cement plug(s) set from at least 100 feet below the bottom to 100 feet above the
top of oil, gas, and fresh-water zones to isolate fluids in the strata.
(2) Open hole below casing, (i) A cement plug, set by the displacement method, at least 100 feet above and
below deepest casing shoe;
(ii) A cement retainer with effective back-pressure control set 50 to 100 feet
above the casing shoe, and a cement plug that extends at least 100 feet below
the casing shoe and at least 50 feet above the retainer; or
(iii) A bridge plug set 50 feet to 100 feet above the shoe with 50 feet of cement
on top of the bridge plug, for expected or known lost circulation conditions.
(3) A perforated zone that is currently (i) A method to squeeze cement to all perforations;
open and not previously squeezed or (ii) A cement plug set by the displacement method, at least 100 feet above to 100
isolated, feet below the perforated interval, or down to a casing plug, whichever is less;
or
(iii) If the perforated zones are isolated from the hole below, you may use any of
the plugs specified in paragraphs (a)(3)(iii)(A) through (E) of this section in-
stead of those specified in paragraphs (a)(3)(i) and (a)(3)(ii) of this section.
(A) A cement retainer with effective back-pressure control set 50 to 100 feet
above the top of the perforated interval, and a cement plug that extends at
least 100 feet below the bottom of the perforated interval with at least 50 feet
of cement above the retainer;
(B) A casing bridge plug set 50 to 100 feet above the top of the perforated inter-
val and at least 50 feet of cement on top of the bridge plug;
(C) A cement plug at least 200 feet in length, set by the displacement method,
with the bottom of the plug no more than 100 feet above the perforated inter-
val;
(D) A through-tubing basket plug set no more than 100 feet above the perforated
interval with at least 50 feet of cement on top of the basket plug; or
(E) A tubing plug set no more than 100 feet above the perforated interval topped
with a sufficient volume of cement so as to extend at least 100 feet above the
uppermost packer in the wellbore and at least 300 feet of cement in the casing
annulus immediately above the packer.
(4) A casing stub where the stub end is (i) A cement plug set at least 100 feet above and below the stub end;
within the casing,
(ii) A cement retainer or bridge plug set at least 50 to 100 feet above the stub
end with at least 50 feet of cement on top of the retainer or bridge plug; or
(iii) A cement plug at least 200 feet long with the bottom of the plug set no more
than 100 feet above the stub end.
(5) A casing stub where the stub end is A plug as specified in paragraph (a)(1) or (a)(2) of this section, as applicable.
below the casing,
(6) An annular space that communicates A cement plug at least 200 feet long set in the annular space. For a well com-
with open hole and extends to the mud pleted above the ocean surface, you must pressure test each casing annulus
line, to verify isolation.
(7) A subsea well with unsealed annulus, A cutter to sever the casing, and you must set a stub plug as specified in para-
graphs (a)(4) and (a)(5) of this section.
(8) A well with casing, A cement surface plug at least 150 feet long set in the smallest casing that ex-
tends to the mud line with the top of the plug no more than 150 feet below the
mud line.
(9) Fluid left in the hole, A fluid in the intervals between the plugs that is dense enough to exert a hydro-
static pressure that is greater than the formation pressures in the intervals.
(10) Permafrost areas, (i) A fluid to be left in the hole that has a freezing point below the temperature of
the permafrost, and a treatment to inhibit corrosion; and
266
PERMANENT WELL PLUGGING REQUIREMENTS—Continued

If you have . . . Then you must use . . .
(ii) Cement plugs designed to set before freezing and have a low heat of hydra-
tion.
(11) Removed the barriers required in Two independent barriers, one of which must be a mechanical barrier, in the cen-
§ 250.420(b)(3) for the well to be com- ter wellbore as described in § 250.420(b)(3) once the well is to be placed in a
pleted permanent or temporary abandonment..
(b) You must test the first plug below temporarily abandon a well, you must
the surface plug and all plugs in lost do all of the following:
circulation areas that are in open hole. (a) Submit form BSEE–0124, Applica-
The plug must pass one of the fol- tion for Permit to Modify, and the ap-
lowing tests to verify plug integrity: plicable information required by
(1) A pipe weight of at least 15,000 § 250.1712 to the appropriate District
pounds on the plug; or Manager and receive approval;
(2) A pump pressure of at least 1,000 (b) Adhere to the plugging and test-
pounds per square inch. Ensure that ing requirements for permanently
the pressure does not drop more than 10 plugged wells listed in the table in
percent in 15 minutes. The District § 250.1715, except for § 250.1715(a)(8). You
Manager may require you to tests do not need to sever the casings, re-
other plug(s). move the wellhead, or clear the site;
(c) Set a bridge plug or a cement plug
at least 100-feet long at the base of the
FR 50900, Aug. 22, 2012; 81 FR 26038, Apr. 29,
2016] deepest casing string, unless the casing
string has been cemented and has not
§ 250.1716 To what depth must I re- been drilled out. If a cement plug is
move wellheads and casings? set, it is not necessary for the cement
(a) Unless the District Manager ap- plug to extend below the casing shoe
proves an alternate depth under para- into the open hole;
graph (b) of this section, you must re- (d) Set a retrievable or a permanent-
move all wellheads and casings to at type bridge plug or a cement plug at
least 15 feet below the mud line. least 100 feet long in the inner-most
(b) The District Manager may ap- casing. The top of the bridge plug or
prove an alternate removal depth if: cement plug must be no more than
(1) The wellhead or casing would not 1,000 feet below the mud line. BSEE
become an obstruction to other users may consider approving alternate re-
of the seafloor or area, and quirements for subsea wells case-by-
geotechnical and other information case;
(e) Identify and report subsea
you provide demonstrate that erosional
wellheads, casing stubs, or other ob-
processes capable of exposing the ob-
structions that extend above the mud
structions are not expected; or
line according to U.S. Coast Guard
(2) You determine, and BSEE con-
(USCG) requirements;
curs, that you must use divers, and the
(f) Except in water depths greater
seafloor sediment stability poses safety
than 300 feet, protect subsea wellheads,
concerns; or
casing stubs, mud line suspensions, or
(3) The water depth is greater than
other obstructions remaining above the
800 meters (2,624 feet).
seafloor by using one of the following
§ 250.1717 [Reserved] methods, as approved by the District
Manager or Regional Supervisor:
TEMPORARY ABANDONED WELLS (1) A caisson designed according to 30
CFR 250, subpart I, and equipped with
§ 250.1721 If I temporarily abandon a aids to navigation;
well that I plan to re-enter, what (2) A jacket designed according to 30
must I do? CFR 250, subpart I, and equipped with
You may temporarily abandon a well aids to navigation; or

when it is necessary for proper develop- (3) A subsea protective device that
ment and production of a lease. To meets the requirements in § 250.1722.
267
§ 250.1722 30 CFR Ch. II (7–1–18 Edition)
(g) Submit certification by a Reg- (1) The date(s) the trawling test was
istered Professional Engineer of the performed and the vessel that was
well abandonment design and proce- used;
dures and that all plugs meet the re- (2) A plat at an appropriate scale
quirements of paragraph (b) of this sec- showing the trawl lines;
tion. In addition to the requirements of (3) A description of the trawling oper-
paragraph (b) of this section, the Reg- ation and the net(s) that were used;
istered Professional Engineer must (4) An estimate by the trawling con-
also certify the design will include two tractor of the seafloor penetration
independent barriers, one of which depth achieved by the trawl;
must be a mechanical barrier, in the (5) A summary of the results of the
center wellbore as described in trawling test including a discussion of
§ 250.420(b)(3). The Registered Profes- any snags and interruptions, a descrip-
sional Engineer must be registered in a tion of any damage to the protective
State of the United States and have covering, the casing stub or mud line
sufficient expertise and experience to suspension equipment, or the trawl,
perform the certification. You must and a discussion of any snag removals
submit this certification with your requiring diver assistance; and
APM (Form BSEE–0124) required by (6) A letter signed by your authorized
§ 250.1712 of this part. representative stating that he/she wit-
nessed the trawling test.
[76 FR 64462, Oct. 18, 2011, as amended at 77 (e) If a temporarily abandoned well is
FR 50900, Aug. 22, 2012; 81 FR 26038, Apr. 29, protected by a subsea device installed
2016]
in a water depth less than 100 feet,
§ 250.1722 If I install a subsea protec- mark the site with a buoy installed ac-
tive device, what requirements cording to the USCG requirements.
must I meet? (f) Provide annual reports to the Re-
gional Supervisor describing your plans
If you install a subsea protective de- to either re-enter and complete the
vice under § 250.1721(f)(3), you must in- well or to permanently plug the well.
stall it in a manner that allows fishing (g) Ensure that all subsea wellheads,
gear to pass over the obstruction with- casing stubs, mud line suspensions, or
out damage to the obstruction, the pro- other obstructions in water depths less
tective device, or the fishing gear. than 300 feet remain protected.
(a) Use form BSEE–0124, Application (1) To confirm that the subsea pro-
for Permit to Modify to request ap- tective covering remains properly in-
proval from the appropriate District stalled, either conduct a visual inspec-
Manager to install a subsea protective tion or perform a trawl test at least
device. annually.
(b) The protective device may not ex- (2) If the inspection reveals that a
tend more than 10 feet above the casing stub or mud line suspension is
seafloor (unless BSEE approves other- no longer properly protected, or if the
wise). trawl does not pass over the subsea
(c) You must trawl over the protec- protective covering without causing
tive device when you install it (adhere damage to the covering, the casing
to the requirements at § 250.1741(d) stub or mud line suspension equipment,
through (h)). If the trawl does not pass or the trawl, notify the appropriate
over the protective device or causes District Manager within 5 days, and
damage to it, you must notify the ap- perform the necessary remedial work
propriate District Manager within 5 within 30 days of discovery of the prob-
days and perform remedial action with- lem.
in 30 days of the trawl; (3) In your annual report required by
(d) Within 30 days after you complete paragraph (f) of this section, include
the trawling test described in para- the inspection date, results, and meth-
graph (c) of this section, submit a re- od used and a description of any reme-
port to the appropriate District Man- dial work you will perform or have per-
ager using form BSEE–0124, Applica- formed.

tion for Permit to Modify that includes (h) You may request approval to
the following: waive the trawling test required by
268
paragraph (c) of this section if you plan ceptable to BSEE. The approval will
to use either: specify:
(1) A buoy with automatic tracking (1) Whether you must continue to
capabilities installed and maintained maintain any financial assurance for
according to USCG requirements at 33 decommissioning; and
CFR part 67 (or its successor); or (2) Whether, and under what cir-
(2) A design and installation method cumstances, you must perform any de-
that has been proven successful by commissioning not performed by the
trawl testing of previous protective de- new facility owner/user.
vices of the same design and installed (b) Before you may remove a plat-
in areas with similar bottom condi- form or other facility, you must sub-
tions. mit a final removal application to the
Regional Supervisor for approval and
§ 250.1723 What must I do when it is include the information listed in
no longer necessary to maintain a § 250.1727.
well in temporary abandoned sta- (c) You must remove a platform or
tus?
other facility according to the ap-
If you or BSEE determines that con- proved application.
tinued maintenance of a well in a tem- (d) You must flush all production ris-
porary abandoned status is not nec- ers with seawater before you remove
essary for the proper development or them.
production of a lease, you must: (e) You must notify the Regional Su-
(a) Promptly and permanently plug pervisor at least 48 hours before you
the well according to § 250.1715; begin the removal operations.
(b) Remove any casing stub or mud
line suspension equipment and any § 250.1726 When must I submit an ini-
subsea protective covering. You must tial platform removal application
submit a request for approval to per- and what must it include?
form such work to the appropriate Dis- An initial platform removal applica-
trict Manager using form BSEE–0124, tion is required only for leases and
Application for Permit to Modify; and pipeline rights-of-way in the Pacific
(c) Clear the well site according to OCS Region or the Alaska OCS Region.
§§ 250.1740 through 250.1742. It must include the following informa-
tion:
REMOVING PLATFORMS AND OTHER (a) Platform or other facility re-
FACILITIES moval procedures, including the types
of vessels and equipment you will use;
§ 250.1725 When do I have to remove (b) Facilities (including pipelines)
platforms and other facilities? you plan to remove or leave in place;
(a) You must remove all platforms (c) Platform or other facility trans-
and other facilities within 1 year after portation and disposal plans;
the lease or pipeline right-of-way ter- (d) Plans to protect marine life and
minates, unless you receive approval to the environment during decommis-
maintain the structure to conduct sioning operations, including a brief as-
other activities. Platforms include pro- sessment of the environmental impacts
duction platforms, well jackets, single- of the operations, and procedures and
well caissons, and pipeline accessory mitigation measures that you will take
platforms. Other activities include to minimize the impacts; and
those supporting OCS oil and gas pro- (e) A projected decommissioning
duction and transportation, as well as schedule.
other energy-related or marine-related
uses (including LNG) for which ade- § 250.1727 What information must I in-
quate financial assurance for decom- clude in my final application to re-
missioning has been provided to a Fed- move a platform or other facility?
eral agency which has given BSEE a You must submit to the Regional Su-
commitment that it has and will exer- pervisor, a final application for ap-
cise authority to compel the perform- proval to remove a platform or other

ance of decommissioning within a time facility. Your application must be ac-
following cessation of the new use accompanied by payment of the service
269
§ 250.1728 30 CFR Ch. II (7–1–18 Edition)
fee listed in § 250.125. If you are pro- (ii) Number and sizes of charges;
posing to use explosives, provide three (iii) Whether you are using single
copies of the application. If you are not shot or multiple shots;
proposing to use explosives, provide (iv) If multiple shots, the sequence
two copies of the application. Include and timing of detonations;
the following information in the final (v) Whether you are using a bulk or
removal application, as applicable: shaped charge;
(a) Identification of the applicant in- (vi) Depth of detonation below the
cluding: mud line; and
(1) Lease operator/pipeline right-of- (vii) Whether you are placing the ex-
way holder; plosives inside or outside of the pilings;
(2) Address; (3) If you will use divers or acoustic
(3) Contact person and telephone devices to conduct a pre-removal sur-
number; and vey to detect the presence of turtles
(4) Shore base. and marine mammals, a description of
(b) Identification of the structure the proposed detection method; and
you are removing including:
(4) A statement whether or not you
(1) Platform Name/BSEE Complex ID
will use transducers to measure the
Number;
pressure and impulse of the detona-
(2) Location (lease/right-of-way, area,
tions.
block, and block coordinates);
(g) Your plans for transportation and
(3) Date installed (year);
disposal (including as an artificial reef)
(4) Proposed date of removal (Month/
or salvage of the removed platform.
Year); and
(5) Water depth. (h) If available, the results of any re-
(c) Description of the structure you cent biological surveys conducted in
are removing including: the vicinity of the structure and recent
(1) Configuration (attach a photo- observations of turtles or marine mam-
graph or a diagram); mals at the structure site.
(2) Size; (i) Your plans to protect archae-
(3) Number of legs/casings/pilings; ological and sensitive biological fea-
(4) Diameter and wall thickness of tures during removal operations, in-
legs/casings/pilings; cluding a brief assessment of the envi-
(5) Whether piles are grouted inside ronmental impacts of the removal op-
or outside; erations and procedures and mitigation
(6) Brief description of soil composi- measures you will take to minimize
tion and condition; such impacts.
(7) The sizes and weights of the jack- (j) A statement whether or not you
et, topsides (by module), conductors, will use divers to survey the area after
and pilings; and removal to determine any effects on
(8) The maximum removal lift weight marine life.
and estimated number of main lifts to
remove the structure. § 250.1728 To what depth must I re-
move a platform or other facility?
(d) A description, including anchor
pattern, of the vessel(s) you will use to (a) Unless the Regional Supervisor
remove the structure. approves an alternate depth under
(e) Identification of the purpose, in- paragraph (b) of this section, you must
cluding: remove all platforms and other facili-
(1) Lease expiration/right-of-way re- ties (including templates and pilings)
linquishment date; and to at least 15 feet below the mud line.
(2) Reason for removing the struc- (b) The Regional Supervisor may ap-
ture. prove an alternate removal depth if:
(f) A description of the removal (1) The remaining structure would
method, including: not become an obstruction to other
(1) A brief description of the method users of the seafloor or area, and
you will use; geotechnical and other information
(2) If you are using explosives, the you provide demonstrate that erosional
following: processes capable of exposing the ob-
(i) Type of explosives; structions are not expected; or
270
(2) You determine, and BSEE con- the decommissioning responsibilities of

curs, that you must use divers and the an Alternate Use RUE grant holder.
seafloor sediment stability poses safety (b) The lessee under the lease origi-
concerns; or nally issued under 30 CFR part 556 will
(3) The water depth is greater than remain responsible for decommis-
800 meters (2,624 feet). sioning obligations that accrued before
issuance of the Alternate Use RUE, as
§ 250.1729 After I remove a platform or well as for decommissioning obliga-
other facility, what information tions that accrue following issuance of
must I submit? the Alternate Use RUE to the extent
Within 30 days after you remove a associated with continued activities
platform or other facility, you must authorized under this part.
submit a written report to the Re- (c) If a lease issued under 30 CFR part
gional Supervisor that includes the fol- 556 is cancelled or otherwise termi-
lowing: nated under any provision of this sub-
(a) A summary of the removal oper- chapter, the lessee, upon our approval,
ation including the date it was com- may defer removal of any OCS facility
pleted; within the lease area that is subject to
(b) A description of any mitigation an Alternate Use RUE. If we elect to
measures you took; and grant such a deferral, the lessee re-
(c) A statement signed by your au- mains responsible for removing the fa-
thorized representative that certifies cility upon termination of the Alter-
that the types and amount of explo- nate Use RUE and will be required to
sives you used in removing the plat- retain sufficient bonding or other fi-
form or other facility were consistent nancial assurances to ensure that the
with those set forth in the approved re- structure is removed or otherwise de-
moval application. commissioned in accordance with the
provisions of this subpart.
§ 250.1730 When might BSEE approve
partial structure removal or top- SITE CLEARANCE FOR WELLS,
pling in place? PLATFORMS, AND OTHER FACILITIES
The Regional Supervisor may grant a § 250.1740 How must I verify that the
departure from the requirement to re- site of a permanently plugged well,
move a platform or other facility by removed platform, or other re-
approving partial structure removal or moved facility is clear of obstruc-
toppling in place for conversion to an tions?
artificial reef if you meet the following Within 60 days after you permanently
conditions: plug a well or remove a platform or
(a) The structure becomes part of a other facility, you must verify that the
State artificial reef program, and the site is clear of obstructions by using
responsible State agency acquires a one of the following methods:
permit from the U.S. Army Corps of (a) For a well site, you must either:
Engineers and accepts title and liabil- (1) Drag a trawl over the site;
ity for the structure; and (2) Scan across the location using
(b) You satisfy any U.S. Coast Guard sonar equipment;
(USCG) navigational requirements for (3) Inspect the site using a diver;
the structure. (4) Videotape the site using a camera
on a remotely operated vehicle (ROV);
§ 250.1731 Who is responsible for de- or
commissioning an OCS facility sub- (5) Use another method approved by
ject to an Alternate Use RUE? the District Manager if the particular
(a) The holder of an Alternate Use site conditions warrant.
RUE issued under 30 CFR part 585 is re- (b) For a platform or other facility
sponsible for all decommissioning obli- site in water depths less than 300 feet,
gations that accrue following the you must drag a trawl over the site.
issuance of the Alternate Use RUE and (c) For a platform or other facility
which pertain to the Alternate Use site in water depths 300 feet or more,
RUE. See 30 CFR part 585, subpart J, you must either:
for additional information concerning (1) Drag a trawl over the site;
271
§ 250.1741 30 CFR Ch. II (7–1–18 Edition)
(2) Scan across the site using sonar § 250.1741 If I drag a trawl across a
equipment; or site, what requirements must I
(3) Use another method approved by meet?
the Regional Supervisor if the par- If you drag a trawl across the site in
ticular site conditions warrant. accordance with § 250.1740, you must
meet all of the requirements of this
section.
(a) You must drag the trawl in a grid-
like pattern as shown in the following
table:
For a . . . You must drag the trawl across a . . .
(1) Well site, 300-foot-radius circle centered on the well location.

(2) Subsea well site, 600-foot-radius circle centered on the well location.
(3) Platform site, 1,320-foot-radius circle centered on the location of the plat-
form.
(4) Single-well caisson, well protector jacket, template, or mani- 600-foot-radius circle centered on the structure location.
fold,
(b) You must trawl 100 percent of the (e) You must use a trawling net that
limits described in paragraph (a) of is representative of those used in the
this section in two directions. commercial fishing industry (one that
(c) You must mark the area to be has a net strength equal or greater
cleared as a hazard to navigation ac- than that provided by No. 18 twine).
cording to USCG requirements until (f) You must ensure that you trawl
you complete the site clearance proce- no closer than 300 feet from a ship-
dures. wreck, and 500 feet from a sensitive bi-
(d) You must use a trawling vessel ological feature.
equipped with a calibrated naviga- (g) If you trawl near an active pipe-
tional positioning system capable of line, you must meet the requirements
providing position accuracy of ±30 feet. in the following table:
For . . . You must trawl . . . And you must . . .
(1) Buried active pipelines, First contact the pipeline owner or oper-
ator to determine the condition of the
pipeline before trawling over the bur-
ied pipeline.
(2) Unburied active pipelines that are 8 no closer than 100 feet to the either side Trawl parallel to the pipeline Do not
inches in diameter or larger, of the pipeline, trawl across the pipeline.
(3) Unburied smaller diameter active pipe- no closer than 100 feet to either side of Trawl parallel to the pipeline. Do not
lines in the trawl area that have ob- the pipeline, trawl across the pipeline.
structions (e.g., pipeline valves)
present,
(4) Unburied active pipelines in the trawl parallel to the pipeline,
area that are smaller than 8 inches in
diameter and have no obstructions
present,
(h) You must ensure that any trawl- § 250.1742 What other methods can I
ing contractor you may use: use to verify that a site is clear?
(1) Has no corporate or other finan-
If you do not trawl a site, you can
cial ties to you; and
verify that the site is clear of obstruc-
(2) Has a valid commercial trawling
tions by using any of the methods
license for both the vessel and its cap-
tain. shown in the following table:
If you use . . . You must . . . And you must . . .

(a) Sonar, cover 100 percent of the appropriate grid Use a sonar signal with a frequency of
area listed in § 250.1741(a), at least 500 kHz.
272
If you use . . . You must . . . And you must . . .
(b) A diver, ensure that the diver visually inspects Ensure that the diver uses a search pat-
100 percent of the appropriate grid tern of concentric circles or parallel
area listed in § 250.1741(a), lines spaced no more than 10 feet
apart.
(c) An ROV (remotely operated vehicle), ensure that the ROV camera records Ensure that the ROV uses a pattern of
videotape over 100 percent of the ap- concentric circles or parallel lines
propriate grid area listed in spaced no more than 10 feet apart.
§ 250.1741(a),
§ 250.1743 How do I certify that a site PIPELINE DECOMMISSIONING

is clear of obstructions?
(a) For a well site, you must submit § 250.1750 When may I decommission a
pipeline in place?
to the appropriate District Manager
within 30 days after you complete the You may decommission a pipeline in
verification activities a form BSEE– place when the Regional Supervisor de-
0124, Application for Permit to Modify, termines that the pipeline does not
to include the following information: constitute a hazard (obstruction) to
(1) A signed certification that the navigation and commercial fishing op-
well site area is cleared of all obstruc- erations, unduly interfere with other
tions; uses of the OCS, or have adverse envi-
(2) The date the verification work ronmental effects.
was performed and the vessel used;
(3) The extent of the area surveyed; § 250.1751 How do I decommission a
(4) The survey method used; pipeline in place?
(5) The results of the survey, includ-
ing a list of any debris removed or a You must do the following to decom-
statement from the trawling con- mission a pipeline in place:
tractor that no objects were recovered; (a) Submit a pipeline decommis-
and sioning application in triplicate to the
(6) A post-trawling job plot or map Regional Supervisor for approval. Your
showing the trawled area. application must be accompanied by
(b) For a platform or other facility payment of the service fee listed in
site, you must submit the following in- § 250.125. Your application must include
formation to the appropriate Regional the following information:
Supervisor within 30 days after you (1) Reason for the operation;
complete the verification activities: (2) Proposed decommissioning proce-
(1) A letter signed by an authorized dures;
company official certifying that the
(3) Length (feet) of segment to be de-
platform or other facility site area is
cleared of all obstructions and that a commissioned; and
company representative witnessed the (4) Length (feet) of segment remain-
verification activities; ing.
(2) A letter signed by an authorized (b) Pig the pipeline, unless the Re-
official of the company that performed gional Supervisor determines that pig-
the verification work for you certifying ging is not practical;
that it cleared the platform or other (c) Flush the pipeline;
facility site area of all obstructions; (d) Fill the pipeline with seawater;
(3) The date the verification work (e) Cut and plug each end of the pipe-
was performed and the vessel used; line;
(4) The extent of the area surveyed;
(f) Bury each end of the pipeline at
(5) The survey method used;
(6) The results of the survey, includ- least 3 feet below the seafloor or cover
ing a list of any debris removed or a each end with protective concrete
statement from the trawling con- mats, if required by the Regional Su-
tractor that no objects were recovered; pervisor; and
and (g) Remove all pipeline valves and

(7) A post-trawling job plot or map other fittings that could unduly inter-
showing the trawled area. fere with other uses of the OCS.
273
§ 250.1752 30 CFR Ch. II (7–1–18 Edition)
§ 250.1752 How do I remove a pipeline? Subpart R [Reserved]

Before removing a pipeline, you
must: Subpart S—Safety and Environ-
(a) Submit a pipeline removal appli- mental Management Systems
cation in triplicate to the Regional Su- (SEMS)
pervisor for approval. Your application
must be accompanied by payment of § 250.1900 Must I have a SEMS pro-
the service fee listed in § 250.125. Your gram?
application must include the following You must develop, implement, and
information: maintain a safety and environmental
(1) Proposed removal procedures; management system (SEMS) program.
(2) If the Regional Supervisor re- Your SEMS program must address the
quires it, a description, including an- elements described in § 250.1902, Amer-
chor pattern(s), of the vessel(s) you ican Petroleum Institute’s Rec-
will use to remove the pipeline; ommended Practice for Development of
(3) Length (feet) to be removed; a Safety and Environmental Manage-
(4) Length (feet) of the segment that ment Program for Offshore Operations
will remain in place; and Facilities (API RP 75) (as incor-
(5) Plans for transportation of the re- porated by reference in § 250.198), and
moved pipe for disposal or salvage; other requirements as identified in this
(6) Plans to protect archaeological subpart.
and sensitive biological features during (a) If there are any conflicts between
removal operations, including a brief the requirements of this subpart and
assessment of the environmental im- API RP 75; COS–2–01, COS–2–03, or COS–
pacts of the removal operations and 2–04; or ISO/IEC 17011 (incorporated by
procedures and mitigation measures reference as specified in § 250.198), you
that you will take to minimize such must follow the requirements of this
impacts; and subpart.
(7) Projected removal schedule and (b) Nothing in this subpart affects
duration. safety or other matters under the juris-
(b) Pig the pipeline, unless the Re- diction of the Coast Guard.
gional Supervisor determines that pig-
ging is not practical; and [76 FR 64462, Oct. 18, 2011, as amended at 78
(c) Flush the pipeline. FR 20440, Apr. 5, 2013]
§ 250.1753 After I decommission a pipe- § 250.1901 What is the goal of my

line, what information must I sub- SEMS program?
mit? The goal of your SEMS program is to
Within 30 days after you decommis- promote safety and environmental pro-
sion a pipeline, you must submit a tection by ensuring all personnel
written report to the Regional Super- aboard a facility are complying with
visor that includes the following: the policies and procedures identified
(a) A summary of the decommis- in your SEMS.
sioning operation including the date it (a) To accomplish this goal, you must
was completed; ensure that your SEMS program iden-
(b) A description of any mitigation tifies, addresses, and manages safety,
measures you took; and environmental hazards, and impacts
(c) A statement signed by your au- during the design, construction, start-
thorized representative that certifies up, operation (including, but not lim-
that the pipeline was decommissioned ited to, drilling and decommissioning),
according to the approved application. inspection, and maintenance of all new
and existing facilities, including mo-
§ 250.1754 When must I remove a pipe- bile offshore drilling units (MODUs)
line decommissioned in place? when attached to the seabed and De-
You must remove a pipeline decom- partment of the Interior (DOI) regu-
missioned in place if the Regional Su- lated pipelines.

pervisor determines that the pipeline is (b) All personnel involved with your
an obstruction. SEMS program must be trained to have
274
the skills and knowledge to perform § 250.1903 Acronyms and definitions.

their assigned duties.
Definitions listed in this section
[76 FR 64462, Oct. 18, 2011, as amended at 78 apply to this subpart and supersede
FR 20440, Apr. 5, 2013] definitions in API RP 75, Appendices D
and E; COS–2–01, COS–2–03, and COS–2–
§ 250.1902 What must I include in my 04; and ISO/IEC 17011 (incorporated by
SEMS program? reference as specified in § 250.198).
You must have a properly docu- (a) Acronyms used frequently in this
mented SEMS program in place and subpart have the following meanings:
make it available to BSEE upon re- AB means Accreditation Body,
quest as required by § 250.1924(b). ASP means Audit Service Provider,
(a) Your SEMS program must meet CAP means Corrective Action Plan,
the minimum criteria outlined in this COS means Center for Offshore Safe-
subpart, including the following SEMS ty,
program elements: EPP means Employee Participation
(1) General (see § 250.1909) Plan,
(2) Safety and Environmental Infor- ISO means International Organiza-
mation (see § 250.1910) tion for Standardization,
(3) Hazards Analysis (see § 250.1911) JSA means Job Safety Analysis,
(4) Management of Change (see MODU means Mobile Offshore Drill-
§ 250.1912) ing Unit,
(5) Operating Procedures (see OCS means Outer Continental Shelf,
§ 250.1913) SEMS means Safety and Environ-
(6) Safe Work Practices (see § 250.1914) mental Management Systems,
(7) Training (see § 250.1915) SWA means Stop Work Authority,
(8) Mechanical Integrity (Assurance USCG means United States Coast
of Quality and Mechanical Integrity of Guard, and
Critical Equipment) (see § 250.1916) UWA means Ultimate Work Author-
(9) Pre-startup Review (see § 250.1917) ity.
(10) Emergency Response and Control (b) Terms used in this subpart are
(see § 250.1918) listed alphabetically as follows:
(11) Investigation of Incidents (see Accreditation Body (AB) means a
§ 250.1919) BSEE-approved independent third-
(12) Auditing (Audit of Safety and party organization that assesses and
Environmental Management Program accredits ASPs.
Elements) (see § 250.1920) Audit Service Provider (ASP) means an
(13) Recordkeeping (Records and Doc- independent third-party organization
umentation) and additional BSEE re- that demonstrates competence to con-
quirements (see § 250.1928) duct SEMS audits in accordance with
(14) Stop Work Authority (SWA) (see the requirements of this subpart.
§ 250.1930) Corrective Action Plan (CAP) means a
(15) Ultimate Work Authority (UWA) scheduled plan to correct deficiencies
(see § 250.1931) identified during an audit and that is
(16) Employee Participation Plan developed by an operator following the
(EPP) (see § 250.1932) issuance of an audit report.
(17) Reporting Unsafe Working Condi- Personnel means direct employee(s) of
tions (see § 250.1933). the operator and contracted workers.
(b) You must include a job safety Ultimate Work Authority (UWA) means
analysis (JSA) for OCS activities iden- the authority assigned to an individual
tified or discussed in your SEMS pro- or position to make final decisions re-
gram (see § 250.1911). lating to activities and operations on
(c) Your SEMS program must meet the facility.
or exceed the standards of safety and [76 FR 64462, Oct. 18, 2011, as amended at 78
environmental protection of API RP 75 FR 20440, Apr. 5, 2013]
(as incorporated by reference in
§ 250.198). § 250.1904 Special instructions.

[76 FR 64462, Oct. 18, 2011, as amended at 78 (a) For purposes of this subpart, each
FR 20440, Apr. 5, 2013] and every reference in COS–2–01, COS–
275
§§ 250.1905–250.1908 30 CFR Ch. II (7–1–18 Edition)
2–03, and COS–2–04 (incorporated by ref- review the SEMS program to deter-
erence as specified in § 250.198) to the mine if it continues to be suitable, ade-
term deepwater means the entire OCS, quate and effective (by addressing the
including all water depths. possible need for changes to policy, ob-
(b) The BSEE does not incorporate by jectives, and other elements of the pro-
reference any requirement that you gram in light of program audit results,
must be a COS member company. For changing circumstances and the com-
purposes of this subpart, each and mitment to continual improvement)
every reference in COS–2–01, COS–2–03, and document the observations, con-
and COS–2–04 to the phrase COS member clusions and recommendations of that
company(ies) means you, whether or not review.
you are a COS member. (e) Develop and endorse a written de-
(c) For purposes of this subpart, each scription of your safety and environ-
and every reference in the relevant sec- mental policies and organizational
tions of COS–2–01, COS–2–03, and COS– structure that define responsibilities,
2–04 (incorporated by reference as spec- authorities, and lines of communica-
ified in § 250.198) to the Center for Off- tion required to implement the SEMS
shore Safety or COS means accreditation program.
body or AB. (f) Utilize personnel with expertise in
(d) For purposes of this subpart, each identifying safety hazards, environ-
and every reference in ISO/IEC 17011 mental impacts, optimizing operations,
(incorporated by reference as specified developing safe work practices, devel-
in § 250.198) to conformity assessment oping training programs and inves-
body (CAB) means ASP. tigating incidents.
[78 FR 20441, Apr. 5, 2013]
(g) Ensure that facilities are de-
signed, constructed, maintained, mon-
§§ 250.1905–250.1908 [Reserved] itored, and operated in a manner com-
patible with applicable industry codes,
§ 250.1909 What are management’s consensus standards, and generally ac-
general responsibilities for the cepted practice as well as in compli-
SEMS program? ance with all applicable governmental
You, through your management, regulations.
must require that the program ele- (h) Ensure that management of safe-
ments discussed in API RP 75 (as incor- ty hazards and environmental impacts
porated by reference in § 250.198) and in is an integral part of the design, con-
this subpart are properly documented struction, maintenance, operation, and
and are available at field and office lo- monitoring of each facility.
cations, as appropriate for each pro- (i) Ensure that suitably trained and
gram element. You, through your man- qualified personnel are employed to
agement, are responsible for the devel- carry out all aspects of the SEMS pro-
opment, support, continued improve- gram.
ment, and overall success of your (j) Ensure that the SEMS program is
SEMS program. Specifically you, maintained and kept up to date by
through your management, must: means of periodic audits to ensure ef-
(a) Establish goals and performance fective performance.
measures, demand accountability for
implementation, and provide necessary § 250.1910 What safety and environ-
resources for carrying out an effective mental information is required?
SEMS program. (a) You must require that SEMS pro-
(b) Appoint management representa- gram safety and environmental infor-
tives who are responsible for estab- mation be developed and maintained
lishing, implementing and maintaining for any facility that is subject to the
an effective SEMS program. SEMS program.
(c) Designate specific management (b) SEMS program safety and envi-
representatives who are responsible for ronmental information must include:
reporting to management on the per- (1) Information that provides the
formance of the SEMS program. basis for implementing all SEMS pro-
(d) At intervals specified in the gram elements, including the require-
SEMS program and at least annually, ments of hazard analysis (§ 250.1911);
276
(2) process design information includ- These individuals also need to be expe-
ing, as appropriate, a simplified proc- rienced in the hazards analysis meth-
ess flow diagram and acceptable upper odologies being employed.
and lower limits, where applicable, for (3) You should assure that the rec-
items such as temperature, pressure, ommendations in the hazards analysis
flow and composition; and are resolved and that the resolution is
(3) mechanical design information in- documented.
cluding, as appropriate, piping and in- (4) A single hazards analysis can be
strument diagrams; electrical area performed to fulfill the requirements
classifications; equipment arrange- for simple and nearly identical facili-
ment drawings; design basis of the re- ties, such as well jackets and single
lief system; description of alarm, shut-
well caissons. You can apply this single
down, and interlock systems; descrip-
hazards analysis to simple and nearly
tion of well control systems; and de-
identical facilities after you verify
sign basis for passive and active fire
that any site-specific deviations are
protection features and systems and
addressed in each of your SEMS pro-
emergency evacuation procedures.
gram elements.
§ 250.1911 What hazards analysis cri- (b) JSA. You must ensure a JSA is
teria must my SEMS program meet? prepared, conducted, and approved for
You must ensure that a hazards anal- OCS activities that are identified or
ysis (facility level) and a JSA (oper- discussed in your SEMS program. The
ations/task level) are developed and JSA is a technique used to identify
implemented for all of your facilities risks to personnel associated with their
and activities identified or discussed in job activities. The JSAs are also used
your SEMS. You must document and to determine the appropriate mitiga-
maintain a current analysis for each tion measures needed to reduce job
operation covered by this section for risks to personnel. The JSA must in-
the life of the operation at the facility. clude all personnel involved with the
You must update the analysis when an job activity.
internal audit is conducted to ensure (1) You must ensure that your JSA
that it is consistent with your facili- identifies, analyzes, and records:
ty’s current operations. (i) The steps involved in performing a
(a) Hazards analysis (facility level). specific job;
The hazards analysis must be appro- (ii) The existing or potential safety,
priate for the complexity of the oper- health, and environmental hazards as-
ation and must identify, evaluate, and sociated with each step; and
manage the hazards involved in the op- (iii) The recommended action(s) and/
eration. or procedure(s) that will eliminate or
(1) The hazards analysis must address reduce these hazards, the risk of a
the following: workplace injury or illness, or environ-
(i) Hazards of the operation; mental impacts.
(ii) Previous incidents related to the
(2) The immediate supervisor of the
operation you are evaluating, including
crew performing the job onsite must
any incident in which you were issued
an Incident of Noncompliance or a civil conduct the JSA, sign the JSA, and en-
or criminal penalty; sure that all personnel participating in
(iii) Control technology applicable to the job understand and sign the JSA.
the operation your hazards analysis is (3) The individual you designate as
evaluating; and being in charge of the facility must ap-
(iv) A qualitative evaluation of the prove and sign all JSAs before per-
possible safety and health effects on sonnel start the job.
employees, and potential impacts to (4) If a particular job is conducted on
the human and marine environments, a recurring basis, and if the parameters
which may result if the control tech- of these recurring jobs do not change,
nology fails. then the person in charge of the job
(2) The hazards analysis must be per- may decide that a JSA for each indi-
formed by a person(s) with experience vidual job is not required. The param-
in the operations being evaluated. eters you must consider in making this
277
§ 250.1912 30 CFR Ch. II (7–1–18 Edition)
determination include, but are not lim- § 250.1913 What criteria for operating
ited to, changes in personnel, proce- procedures must my SEMS program
dures, equipment, and environmental meet?
conditions associated with the job. (a) You must develop and implement
(c) All personnel, which includes con- written operating procedures that pro-
tractors, must be trained in accordance vide instructions for conducting safe
with the requirements of § 250.1915. You and environmentally sound activities
must also verify that contractors are involved in each operation addressed in
trained in accordance with § 250.1915 your SEMS program. These procedures
prior to performing a job. must include the job title and report-
ing relationship of the person or per-
[76 FR 64462, Oct. 18, 2011, as amended at 78 sons responsible for each of the facili-
FR 20441, Apr. 5, 2013]
ty’s operating areas and address the
following:
§ 250.1912 What criteria for manage-
ment of change must my SEMS pro- (1) Initial startup;
gram meet? (2) Normal operations;
(3) All emergency operations (includ-
(a) You must develop and implement ing but not limited to medical evacu-
written management of change proce- ations, weather-related evacuations
dures for modifications associated with and emergency shutdown operations);
the following: (4) Normal shutdown;
(1) Equipment, (5) Startup following a turnaround,
(2) Operating procedures, or after an emergency shutdown;
(3) Personnel changes (including con- (6) Bypassing and flagging out-of-
tractors), service equipment;
(4) Materials, and (7) Safety and environmental con-
(5) Operating conditions. sequences of deviating from your
equipment operating limits and steps
(b) Management of change procedures
required to correct or avoid this devi-
do not apply to situations involving re- ation;
placement in kind (such as, replace- (8) Properties of, and hazards pre-
ment of one component by another sented by, the chemicals used in the
component with the same performance operations;
capabilities). (9) Precautions you will take to pre-
(c) You must review all changes prior vent the exposure of chemicals used in
to their implementation. your operations to personnel and the
(d) The following items must be in- environment. The precautions must in-
cluded in your management of change clude control technology, personal pro-
procedures: tective equipment, and measures to be
(1) The technical basis for the taken if physical contact or airborne
change; exposure occurs;
(2) Impact of the change on safety, (10) Raw materials used in your oper-
health, and the coastal and marine en- ations and the quality control proce-
vironments; dures you used in purchasing these raw
(3) Necessary time period to imple- materials;
ment the change; and (11) Control of hazardous chemical in-
ventory; and
(4) Management approval procedures
(12) Impacts to the human and ma-
for the change.
rine environment identified through
(e) Employees, including contractors your hazards analysis.
whose job tasks will be affected by a (b) Operating procedures must be ac-
change in the operation, must be in- cessible to all employees involved in
formed of, and trained in, the change the operations.
prior to startup of the process or af- (c) Operating procedures must be re-
fected part of the operation; and viewed at the conclusion of specified
(f) If a management of change results periods and as often as necessary to as-
in a change in the operating procedures sure they reflect current and actual op-
of your SEMS program, such changes erating practices, including any
must be documented and dated. changes made to your operations.
278
(d) You must develop and implement are conducting their activities in ac-
safe and environmentally sound work cordance with your SEMS program.
practices for identified hazards during (2) You are responsible for making
operations and the degree of hazard certain that contractors have the skills
presented. and knowledge to perform their as-
(e) Review of and changes to the pro- signed duties and are conducting these
cedures must be documented and com- activities in accordance with the re-
municated to responsible personnel. quirements in your SEMS program.
(3) You must make the results of
§ 250.1914 What criteria must be docu- your verification for selecting contrac-
mented in my SEMS program for tors available to BSEE upon request.
safe work practices and contractor (d) Your SEMS program must include
selection? procedures and verification that con-
Your SEMS program must establish tractor personnel understand and can
and implement safe work practices de- perform their assigned duties for ac-
signed to minimize the risks associated tivities such as, but not limited to:
with operations, maintenance, modi- (1) Installation, maintenance, or re-
fication activities, and the handling of pair of equipment;
materials and substances that could af- (2) Construction, startup, and oper-
fect safety or the environment. Your ation of your facilities;
SEMS program must also document (3) Turnaround operations;
contractor selection criteria. When se- (4) Major renovation; or
lecting a contractor, you must obtain (5) Specialty work.
and evaluate information regarding the (e) You must:
contractor’s safety record and environ- (1) Perform periodic evaluations of
mental performance. You must ensure the performance of contract employees
that contractors have their own writ- that verifies they are fulfilling their
ten safe work practices. Contractors obligations, and
may adopt appropriate sections of your (2) Maintain a contractor employee
SEMS program. You and your con- injury and illness log for 2 years re-
tractor must document an agreement lated to the contractor’s work in the
on appropriate contractor safety and operation area, and include this infor-
environmental policies and practices mation on Form BSEE–0131.
before the contractor begins work at (f) You must inform your contractors
your facilities. of any known hazards at the facility
(a) A contractor is anyone per- they are working on including, but not
forming work for you. However, these limited to fires, explosions, slips, trips,
requirements do not apply to contrac- falls, other injuries, and hazards asso-
tors providing domestic services to you ciated with lifting operations.
or other contractors. Domestic services (g) You must develop and implement
include janitorial work, food and bev- safe work practices to control the pres-
erage service, laundry service, house- ence, entrance, and exit of contract
keeping, and similar activities. employees in operation areas.
(b) You must document that your [76 FR 64462, Oct. 18, 2011, as amended at 78
contracted employees are knowledge- FR 20441, Apr. 5, 2013]
able and experienced in the work prac-
tices necessary to perform their job in § 250.1915 What training criteria must
a safe and environmentally sound man- be in my SEMS program?
ner. Documentation of each contracted Your SEMS program must establish
employee’s expertise to perform his/her and implement a training program so
job and a copy of the contractor’s safe- that all personnel are trained in ac-
ty policies and procedures must be cordance with their duties and respon-
made available to the operator and sibilities to work safely and are aware
BSEE upon request. of potential environmental impacts.
(c) Your SEMS program must include Training must address such areas as
procedures and verification for select- operating procedures (§ 250.1913), safe
ing a contractor as follows: work practices (§ 250.1914), emergency

(1) Your SEMS program must have response and control measures
procedures that verify that contractors (§ 250.1918), SWA (§ 250.1930), UWA
279
§ 250.1916 30 CFR Ch. II (7–1–18 Edition)
(§ 250.1931), EPP (§ 250.1932), reporting consequences. These procedures must

unsafe working conditions (§ 250.1933), address the following:
and how to recognize and identify haz- (a) The design, procurement, fabrica-
ards and how to construct and imple- tion, installation, calibration, and
ment JSAs (§ 250.1911). You must docu- maintenance of your equipment and
ment your instructors’ qualifications. systems in accordance with the manu-
Your SEMS program must address: facturer’s design and material speci-
(a) Initial training for the basic well- fications.
being of personnel and protection of (b) The training of each employee in-
the environment, and ensure that per- volved in maintaining your equipment
sons assigned to operate and maintain and systems so that your employees
the facility possess the required knowl- can implement your mechanical integ-
edge and skills to carry out their du- rity program.
ties and responsibilities, including (c) The frequency of inspections and
startup and shutdown. tests of your equipment and systems.
(b) Periodic training to maintain un- The frequency of inspections and tests
derstanding of, and adherence to, the must be in accordance with BSEE regu-
current operating procedures, using lations and meet the manufacturer’s
periodic drills, to verify adequate re- recommendations. Inspections and
tention of the required knowledge and tests can be performed more frequently
skills. if determined to be necessary by prior
(c) Communication requirements to operating experience.
ensure that personnel will be informed (d) The documentation of each in-
of and trained as outlined in this sec- spection and test that has been per-
tion whenever a change is made in any formed on your equipment and sys-
of the areas in your SEMS program tems. This documentation must iden-
that impacts their ability to properly tify the date of the inspection or test;
understand and perform their duties include the name and position, and the
and responsibilities. Training and/or signature of the person who performed
notice of the change must be given be- the inspection or test; include the se-
fore personnel are expected to operate rial number or other identifier of the
the facility. equipment on which the inspection or
(d) How you will verify that the contest was performed; include a descrip-
tractors are trained in the work prac- tion of the inspection or test per-
tices necessary to understand and performed; and the results of the inspec-
form their jobs in a safe and environ- tion test.
mentally sound manner in accordance (e) The correction of deficiencies as-
with all provisions of this section. sociated with equipment and systems
[76 FR 64462, Oct. 18, 2011, as amended at 78 that are outside the manufacturer’s
FR 20441, Apr. 5, 2013] recommended limits. Such corrections
must be made before further use of the
§ 250.1916 What criteria for mechan- equipment and system.
ical integrity must my SEMS pro- (f) The installation of new equipment
gram meet? and constructing systems. The proce-
You must develop and implement dures must address the application for
written procedures that provide in- which they will be used.
structions to ensure the mechanical in- (g) The modification of existing
tegrity and safe operation of equip- equipment and systems. The proce-
ment through inspection, testing, and dures must ensure that they are modi-
quality assurance. The purpose of me- fied for the application for which they
chanical integrity is to ensure that will be used.
equipment is fit for service. Your me- (h) The verification that inspections
chanical integrity program must en- and tests are being performed. The pro-
compass all equipment and systems cedures must be appropriate to ensure
used to prevent or mitigate uncon- that equipment and systems are in-
trolled releases of hydrocarbons, toxic stalled consistent with design speci-

substances, or other materials that fications and the manufacturer’s in-
may cause environmental or safety structions.
280
(i) The assurance that maintenance (c) Training and Drills incorporating
materials, spare parts, and equipment emergency response and evacuation
are suitable for the applications for procedures conducted periodically for
which they will be used. all personnel (including contractor’s
personnel), as required by the SEMS
§ 250.1917 What criteria for pre-start- training program (§ 250.1915). Drills
up review must be in my SEMS pro-
gram? must be based on realistic scenarios
conducted periodically to exercise ele-
Your SEMS program must require ments contained in the facility or area
that the commissioning process include
emergency action plan. An analysis
a pre-startup safety and environmental
and critique of each drill must be con-
review for new and significantly modi-
fied facilities that are subject to this ducted to identify and correct weak-
subpart to confirm that the following nesses.
criteria are met:
§ 250.1919 What criteria for investiga-
(a) Construction and equipment are tion of incidents must be in my
in accordance with applicable speci- SEMS program?
fications.
(b) Safety, environmental, operating, To learn from incidents and help pre-
maintenance, and emergency proce- vent similar incidents, your SEMS pro-
dures are in place and are adequate. gram must establish procedures for in-
(c) Safety and environmental infor- vestigation of all incidents with seri-
mation is current. ous safety or environmental con-
(d) Hazards analysis recommenda- sequences and require investigation of
tions have been implemented as appro- incidents that are determined by facil-
priate. ity management or BSEE to have pos-
(e) Training of operating personnel sessed the potential for serious safety
has been completed. or environmental consequences. Inci-
(f) Programs to address management dent investigations must be initiated
of change and other elements of this as promptly as possible, with due re-
subpart are in place. gard for the necessity of securing the
(g) Safe work practices are in place. incident scene and protecting people
and the environment. Incident inves-
§ 250.1918 What criteria for emergency
response and control must be in my tigations must be conducted by per-
SEMS program? sonnel knowledgeable in the process in-
volved, investigation techniques, and
Your SEMS program must require
other specialties that are relevant or
that emergency response and control
necessary.
plans are in place and are ready for im-
mediate implementation. These plans (a) The investigation of an incident
must be validated by drills carried out must address the following:
in accordance with a schedule defined (1) The nature of the incident;
by the SEMS training program (2) The factors (human or other) that
(§ 250.1915). The SEMS emergency re- contributed to the initiation of the in-
sponse and control plans must include: cident and its escalation/control; and
(a) Emergency Action Plan that as- (3) Recommended changes identified
signs authority and responsibility to as a result of the investigation.
the appropriate qualified person(s) at a (b) A corrective action program must
facility for initiating effective emer- be established based on the findings of
gency response and control, addressing the investigation in order to analyze
emergency reporting and response re- incidents for common root causes. The
quirements, and complying with all ap- corrective action program must:
plicable governmental regulations; (1) Retain the findings of investiga-
(b) Emergency Control Center(s) des-
tions for use in the next hazard anal-
ignated for each facility with access to
ysis update or audit;
the Emergency Action Plans, oil spill
contingency plan, and other safety and (2) Determine and document the re-
environmental information (§ 250.1910); sponse to each finding to ensure that
and corrective actions are completed; and
281
§ 250.1920 30 CFR Ch. II (7–1–18 Edition)
(3) Implement a system whereby con- of an onshore portion and an offshore

clusions of investigations are distrib- portion, including all related infra-
uted to similar facilities and appro- structure, once per year for every year
priate personnel within their organiza- in which drilling is conducted.
tion. (6) Section 12.6 Audit Team. Your au-
dits must be performed by an ASP as
§ 250.1920 What are the auditing re- described in § 250.1921. You must in-
quirements for my SEMS program?
clude the ASP’s qualifications in your
(a) Your SEMS program must be au- audit plan.
dited by an accredited ASP according (c) You must submit an audit report
to the requirements of this subpart and of the audit findings, observations, de-
API RP 75, Section 12 (incorporated by ficiencies identified, and conclusions to
reference as specified in § 250.198). The BSEE within 60 days of the audit com-
audit process must also meet or exceed pletion date. For exploratory drilling
the criteria in Sections 9.1 through 9.8 operations taking place on the Arctic
of Requirements for Third-party SEMS OCS, you must submit an audit report
Auditing and Certification of Deepwater of the audit findings, observations, de-
Operations COS–2–03 (incorporated by ficiencies and conclusions for the on-
reference as specified in § 250.198) or its shore portion of your audit no later
equivalent. Additionally, the audit than March 1 in any year in which you
team lead must be an employee, rep- plan to drill, and for the offshore por-
resentative, or agent of the ASP, and tion of your audit, within 30 days of the
must not have any affiliation with the close of the audit.
operator. The remaining team mem-
(d) You must provide BSEE with a
bers may be chosen from your per-
copy of your CAP for addressing the de-
sonnel and those of the ASP. The audit
ficiencies identified in your audit with-
must be comprehensive and include all
in 60 days of the audit completion date.
elements of your SEMS program. It
Your CAP must include the name and
must also identify safety and environ-
job title of the personnel responsible
mental performance deficiencies.
for correcting the identified defi-
(b) Your audit plan and procedures
must meet or exceed all of the rec- ciency(ies). The BSEE will notify you
ommendations included in API RP 75 as soon as practicable after receipt of
section 12 (as specified in § 250.198) and your CAP if your proposed schedule is
include information on how you ad- not acceptable or if the CAP does not
dressed those recommendations. You effectively address the audit findings.
must specifically address the following For exploratory drilling operations
items: taking place on the Arctic OCS, you
(1) Section 12.1 General. must provide BSEE with a copy of your
(2) Section 12.2 Scope. CAP for addressing deficiencies or
(3) Section 12.3 Audit Coverage. nonconformities identified in the on-
(4) Section 12.4 Audit Plan. You must shore portion of the audit no later than
submit your written Audit Plan to March 1 in any year in which you plan
BSEE at least 30 days before the audit. to drill, and for the offshore portion of
BSEE reserves the right to modify the your audit, within 30 days of the close
list of facilities that you propose to of the audit.
audit. (e) BSEE may verify that you under-
(5) Section 12.5 Audit Frequency. You took the corrective actions and that
must have your SEMS program audited these actions effectively address the
by an ASP within 2 years after initial audit findings.
implementation and every 3 years (f) For exploratory drilling oper-
thereafter. The 3-year auditing cycle ations taking place on the Arctic OCS,
begins on the start date of each com- during the offshore portion of each
prehensive audit (including the initial audit, 100 percent of the facilities oper-
implementation audit) and ends on the ated must be audited while drilling ac-
start date of your next comprehensive tivities are underway. You must start
audit. For exploratory drilling oper- and close the offshore portion of the
ations taking place on the Arctic OCS, audit for each facility within 30 days
you must conduct an audit, consisting after the first spudding of the well or
282
entry into an existing wellbore for any of an ASP. Requests for approval must
purpose from that facility. be sent to DOI/BSEE, ATTN: Chief, Of-
(g) For exploratory drilling oper- fice of Offshore Regulatory Programs,
ations taking place on the Arctic OCS, 381 Elden Street, HE–3314, Herndon, VA
if BSEE determines that the CAP or 20170.
progress toward implementing the CAP (2) An AB may be subject to BSEE
is not satisfactory, BSEE may order audits and other requirements deemed
you to shut down all or part of your op- necessary to verify compliance with
erations. the accreditation requirements.
[76 FR 64462, Oct. 18, 2011, as amended at 78 (b) An AB must have procedures in
FR 20442, Apr. 5, 2013; 81 FR 36151, June 6, place to avoid conflicts of interest with
2016; 81 FR 46563, July 15, 2016] the ASP and make such information
available to BSEE upon request.
§ 250.1921 What qualifications must
the ASP meet? [78 FR 20442, Apr. 5, 2013]
(a) The ASP must meet or exceed the § 250.1923 [Reserved]
qualifications, competency, and train-
ing criteria contained in Section 3 and § 250.1924 How will BSEE determine if
Sections 6 through 10 of Qualification my SEMS program is effective?
and Competence Requirements for Audit (a) The BSEE, or its authorized rep-
Teams and Auditors Performing Third-
resentative, may evaluate or visit your
party SEMS Audits of Deepwater Oper-
facility(ies) to determine whether your
ations, COS–2–01, (incorporated by ref-
SEMS program is in place, addresses
erence as specified in § 250.198) or its
all required elements, is effective in
equivalent;
protecting worker safety and health
(b) The ASP must be accredited by a
and the environment, and preventing
BSEE-approved AB; and
incidents. The BSEE, or its authorized
(c) The ASP must perform an audit
in accordance with 250.1920(a). representative, may evaluate any and
all aspects of your SEMS program as
[78 FR 20442, Apr. 5, 2013] outlined in this subpart. These evalua-
tions or visits may be random and may
§ 250.1922 What qualifications must an be based upon your performance or
AB meet?
that of your contractors.
(a) In order for BSEE to approve an (b) For the evaluations, you must
AB, the organization must satisfy the make the following available to BSEE
requirements of the International Or- upon request:
ganization for Standardization’s (ISO/ (1) Your SEMS program;
IEC 17011) Conformity assessment—Gen- (2) Your audit team’s qualifications;
eral requirements for accreditation bodies (3) The SEMS audits conducted of
accrediting conformity assessment bodies, your program;
First Edition 2004–09–01; Corrected (4) Documents or information rel-
Version 2005–02–15 (incorporated by ref- evant to whether you have addressed
erence as specified in § 250.198) or its and corrected the deficiencies of your
equivalent. audit; and
(1) The AB must have an accredita-
(5) Other relevant documents or in-
tion process that meets or exceeds the
formation.
requirements contained in Section 6 of
(c) During the site visit BSEE may
Requirements for Accreditation of Audit
verify that:
Service Providers Performing SEMS Au-
dits and Certification of Deepwater Oper- (1) Personnel are following your
ations, COS–2–04 (incorporated by ref- SEMS program,
erence as specified in § 250.198) or its (2) You can explain and demonstrate
equivalent, and other requirements the procedures and policies included in
specified in this subpart. Organizations your SEMS program; and
requesting approval must submit docu- (3) You can produce evidence to sup-
mentation to BSEE describing the port the implementation of your SEMS
process for assessing an ASP for ac- program.

creditation and approving, maintain- [76 FR 64462, Oct. 18, 2011, as amended at 78
ing, and withdrawing the accreditation FR 20442, Apr. 5, 2013]
283
§ 250.1925 30 CFR Ch. II (7–1–18 Edition)
§ 250.1925 May BSEE direct me to con- § 250.1928 What are my recordkeeping

duct additional audits? and documentation requirements?
(a) The BSEE may direct you to have (a) Your SEMS program procedures
an ASP audit of your SEMS program if must ensure that records and docu-
BSEE identifies safety or non-compli- ments are maintained for a period of 6
ance concerns based on the results of years, except as provided below. You
our inspections and evaluations, or as a must document and keep all SEMS au-
result of an event. This BSEE-directed dits for 6 years and make them avail-
audit is in addition to the regular audit able to BSEE upon request. You must
required by § 250.1920. Alternatively, maintain a copy of all SEMS program
BSEE may conduct an audit. documents at an onshore location.
(1) If BSEE directs you to have an (b) For JSAs, the person in charge of
ASP audit, you are responsible for all the job must document the results of
of the costs associated with the audit,
the JSA in writing and must ensure
and
that records are kept onsite for 30
(i) The ASP must meet the require-
days. In the case of a MODU, records
ments of §§ 250.1920 and 250.1921 of this
must be kept onsite for 30 days or until
subpart.
you release the MODU, whichever
(ii) You must submit an audit report
comes first. You must retain these
of the audit findings, observations, de-
ficiencies identified, and conclusions to records for 2 years and make them
BSEE within 60 days of the audit com- available to BSEE upon request.
pletion date. (c) You must document and date all
(2) If BSEE conducts the audit, BSEE management of change provisions as
will provide you with a report of the specified in § 250.1912. You must retain
audit findings, observations, defi- these records for 2 years and make
ciencies identified, and conclusions as them available to BSEE upon request.
soon as practicable. (d) You must keep your injury/illness
(b) You must provide BSEE a copy of log for 2 years and make them avail-
your CAP for addressing the defi- able to BSEE upon request.
ciencies identified in the BSEE-di- (e) You must keep all evaluations
rected audit within 60 days of the audit completed on contractor’s safety poli-
completion date. Your CAP must in- cies and procedures for 2 years and
clude the name and job title of the per- make them available to BSEE upon re-
sonnel responsible for correcting the quest.
identified deficiency(ies). The BSEE (f) For SWA, you must document all
will notify you as soon as practicable training and reviews required by
after receipt of your CAP if your pro- § 250.1930(e). You must ensure that
posed schedule is not acceptable or if these records are kept onsite for 30
the CAP does not effectively address days. In the case of a MODU, records
the audit findings. must be kept onsite for 30 days or until
[78 FR 20442, Apr. 5, 2013] you release the MODU, whichever
comes first. You must retain these
§ 250.1926 [Reserved] records for 2 years and make them
available to BSEE upon request.
§ 250.1927 What happens if BSEE finds
shortcomings in my SEMS pro- (g) For EPP, you must document
gram? your employees’ participation in the
development and implementation of
If BSEE determines that your SEMS the SEMS program. You must retain
program is not in compliance with this these records for 2 years and make
subpart we may initiate one or more of
them available to BSEE upon request.
the following enforcement actions:
(h) You must keep all records in an
(a) Issue an Incident(s) of Noncompli-
orderly manner, readily identifiable,
ance;
retrievable and legible, and include the
(b) Assess civil penalties; or
date of any and all revisions.

(c) Initiate probationary or disquali-
fication procedures from serving as an [76 FR 64462, Oct. 18, 2011, as amended at 78
OCS operator. FR 20442, Apr. 5, 2013]
284
§ 250.1929 What are my responsibilities § 250.1931 What must be included in

for submitting OCS performance my SEMS program for UWA?
measure data?
(a) Your SEMS program must have a
You must submit Form BSEE–0131 on process to identify the individual with
an annual basis by March 31st. The the UWA on your facility(ies). You
form must be broken down quarterly, must designate this individual taking
reporting the previous calendar year’s into account all applicable USCG regu-
data. lations that deal with designating a
person in charge of an OCS facility.
§ 250.1930 What must be included in Your SEMS program must clearly de-
my SEMS program for SWA? fine who is in charge at all times. In
(a) Your SWA procedures must en- the event that multiple facilities, in-
sure the capability to immediately cluding a MODU, are attached and
stop work that is creating imminent working together or in close proximity
risk or danger. These procedures must to one another to perform an OCS oper-
grant all personnel the responsibility ation, your SEMS program must iden-
and authority, without fear of reprisal, tify the individual with the UWA over
to stop work or decline to perform an the entire operation, including all fa-
assigned task when an imminent risk cilities.
or danger exists. Imminent risk or dan- (b) You must ensure that all per-
ger means any condition, activity, or sonnel clearly know who has UWA and
practice in the workplace that could who is in charge of a specific operation
reasonably be expected to cause: or activity at all times, including when
(1) Death or serious physical harm; or that responsibility shifts to a different
individual.
(2) Significant environmental harm
to: (c) The SEMS program must provide
that if an emergency occurs that cre-
(i) Land;
ates an imminent risk or danger to the
(ii) Air; or
health or safety of an individual, the
(iii) Mineral deposits, marine, coast- public, or to the environment (as speci-
al, or human environment. fied in § 250.1930(a)), the individual with
(b) The person in charge of the con- the UWA is authorized to pursue the
ducted work is responsible for ensuring most effective action necessary in that
the work is stopped in an orderly and individual’s judgment for mitigating
safe manner. Individuals who receive a and abating the conditions or practices
notification to stop work must comply causing the emergency.
with that direction immediately.
(c) Work may be resumed when the [78 FR 20443, Apr. 5, 2013]
individual on the facility with UWA de- § 250.1932 What are my EPP require-
termines that the imminent risk or ments?
danger does not exist or no longer ex-
ists. The decision to resume activities (a) Your management must consult
must be documented in writing as soon with their employees on the develop-
as practicable. ment, implementation, and modifica-
tion of your SEMS program.
(d) You must include SWA procedures
and expectations as a standard state- (b) Your management must develop a
written plan of action regarding how
ment in all JSAs.
your appropriate employees, in both
(e) You must conduct training on
your offices and those working on off-
your SWA procedures as part of ori-
shore facilities, will participate in your
entations for all new personnel who
SEMS program development and im-
perform activities on the OCS. Addi- plementation.
tionally, the SWA procedures must be
(c) Your management must ensure
reviewed during all meetings focusing
that employees have access to sections
on safety on facilities subject to this
of your SEMS program that are rel-

subpart. evant to their jobs.
[78 FR 20443, Apr. 5, 2013]
[78 FR 20443, Apr. 5, 2013]
285
§ 250.1933 30 CFR Ch. II (7–1–18 Edition)
§ 250.1933 What procedures must be trolled observation, contextual meas-

included for reporting unsafe work- urements, controlled collection, anal-
ing conditions? ysis, interpretation, and explanation.
(a) Your SEMS program must include Archaeological resources mean any ma-
procedures for all personnel to report terial remains of human life or activi-
unsafe working conditions in accord- ties that are at least 50 years of age
ance with § 250.193. These procedures and of archaeological interest.
must take into account applicable Coastal environment means the phys-
USCG reporting requirements for un- ical, atmospheric, and biological com-
safe working conditions. ponents, conditions, and factors that
(b) You must post a notice at the interactively determine the produc-
place of employment in a visible loca- tivity, state, condition, and quality of
tion frequently visited by personnel the terrestrial ecosystem from the
that contains the reporting informa- shoreline inward to the boundaries of
tion in § 250.193. the coastal zone.
Coastal Zone means the coastal
[78 FR 20443, Apr. 5, 2013] waters (including the lands therein and
thereunder) and the adjacent
PART 251—GEOLOGICAL AND shorelands (including the waters there-
GEOPHYSICAL (G&G) EXPLO- in and thereunder), strongly influenced
RATIONS OF THE OUTER CONTI- by each other and in proximity to the
NENTAL SHELF shorelines of the several coastal States
and extends seaward to the outer limit
Sec. of the U.S. territorial sea.
251.1 Definitions. Coastal Zone Management Act means
251.2 [Reserved] the Coastal Zone Management Act of
251.3 Authority and applicability of this 1972, as amended (16 U.S.C. 1451 et seq.).
part. Data means facts, statistics, meas-
251.4–251.6 [Reserved] urements, or samples that have not
251.7 Test drilling activities under a permit.
been analyzed, processed, or inter-
251.8–251.14 [Reserved]
251.15 Authority for information collection. preted.
Deep stratigraphic test means drilling
AUTHORITY: 31 U.S.C. 9701, 43 U.S.C. 1334. that involves the penetration into the
SOURCE: 76 FR 64462, Oct. 18, 2011, unless sea bottom of more than 500 feet (152
otherwise noted. meters).
Director means the Director of the
§ 251.1 Definitions. Bureau of Safety and Environmental
Terms used in this part have the fol- Enforcement, U.S. Department of the
lowing meaning: Interior, or a subordinate authorized to
Act means the Outer Continental act on the Director’s behalf.
Shelf Lands Act (OCSLA), as amended Exploration means the commercial
(43 U.S.C. 1331 et seq.). search for oil, gas, and sulphur. Activi-
Analyzed geological information means ties classified as exploration include,
data collected under a permit or a lease but are not limited to:
that have been analyzed. Analysis may (1) Geological and geophysical ma-
include, but is not limited to, identi- rine and airborne surveys where mag-
fication of lithologic and fossil con- netic, gravity, seismic reflection, seis-
tent, core analyses, laboratory anal- mic refraction, gas sniffers, coring, or
yses of physical and chemical prop- other systems are used to detect or
erties, well logs or charts, results from imply the presence of oil, gas, or sul-
formation fluid tests, and descriptions phur; and
of hydrocarbon occurrences or haz- (2) Any drilling, whether on or off a
ardous conditions. geological structure.
Archaeological interest means capable Geological and geophysical scientific re-
of providing scientific or humanistic search means any oil, gas, or sulphur
understanding of past human behavior, related investigation conducted in the
cultural adaptation, and related topics OCS for scientific and/or research pur-
through the application of scientific or poses. Geological, geophysical, and
scholarly techniques, such as con- geochemical data and information
286
gathered and analyzed are made avail- schematic cross sections, 3-dimen-
able to the public for inspection and re- sional representations, and maps, de-
production at the earliest practicable veloped by determining the geological
time. The term does not include com- significance of geological data and ana-
mercial geological or geophysical ex- lyzed and processed geologic informa-
ploration or research. tion.
Geological exploration means explo- Interpreted geophysical information
ration that uses geological and geo- means knowledge, often in the form of
chemical techniques (e.g., coring and seismic cross sections, 3-dimensional
test drilling, well logging, and bottom representations, and maps, developed
sampling) to produce data and informa- by determining the geological signifi-
tion on oil, gas, and sulphur resources cance of geophysical data and proc-
in support of possible exploration and essed geophysical information.
development activities. The term does Lease means an agreement which is
not include geological scientific re- issued under section 8 or maintained
search. under section 6 of the Act and which
Geological information means geologi- authorizes exploration for, and devel-
cal or geochemical data that have been opment and production of, minerals or
analyzed, processed, or interpreted. the area covered by that authorization,
Geophysical data means measure- whichever is required by the context.
ments that have not been processed or Lessee means a person who has en-
interpreted. tered into, or is the BOEM approved as-
Geophysical exploration means explo- signee of, a lease with the United
ration that utilizes geophysical tech- States to explore for, develop, and
niques (e.g., gravity, magnetic, electro- produce the leased minerals. The term
magnetic, or seismic) to produce data ‘‘lessee’’ also includes an owner of op-
and information on oil, gas, and sul- erating rights.
phur resources in support of possible Marine environment means the phys-
exploration and development activi- ical, atmospheric, and biological com-
ties. The term does not include geo- ponents, conditions, and factors that
physical scientific research. interactively determine the quality of
Geophysical information means geo- the marine ecosystem in the coastal
physical data that have been processed zone and in the OCS.
or interpreted. Material remains mean physical evi-
Governor means the Governor of a dence of human habitation, occupation,
State or the person or entity lawfully use, or activity, including the site, lo-
designated to exercise the powers cation, or context in which such evi-
granted to a Governor pursuant to the dence is situated.
Act. Minerals mean oil, gas, sulphur,
Human environment means the phys- geopressured-geothermal and associ-
ical, social, and economic components, ated resources, and all other minerals
conditions, and factors which inter- which are authorized by an Act of Con-
actively determine the state, condi- gress to be produced from public lands
tion, and quality of living conditions, as defined in section 103 of the Federal
employment, and health of those af- Land Policy and Management Act of
fected, directly or indirectly, by activi- 1976 (43 U.S.C. 1702).
ties occurring on the OCS. Notice means a written statement of
Hydrocarbon occurrence means the di- intent to conduct geological or geo-
rect or indirect detection during drill- physical scientific research related to
ing operations of any liquid or gaseous oil, gas, and sulphur in the OCS other
hydrocarbons by examination of well than under a permit.
cuttings, cores, gas detector readings, Oil, gas, and sulphur mean oil, gas,
formation fluid tests, wireline logs, or sulphur, geopressured-geothermal, and
by any other means. The term does not associated resources.
include background gas, minor accu- Outer Continental Shelf (OCS) means
mulations of gas, or heavy oil residues all submerged lands lying seaward and
on cuttings and cores. outside the area of lands beneath navi-

Interpreted geological information gable waters as defined in section 2 of
means knowledge, often in the form of the Submerged Lands Act (43 U.S.C.
287
§ 251.2 30 CFR Ch. II (7–1–18 Edition)
1301), and of which the subsoil and sea- mittee, or becomes first available to
bed appertain to the United States and third parties via sale, trade, license
are subject to its jurisdiction and con- agreement, or other means.
trol. Secretary means the Secretary of the
Permit means the contract or agree- Interior or a subordinate authorized to
ment, other than a lease, issued pursu- act on the Secretary’s behalf.
ant to this part, under which a person Shallow test drilling means drilling
acquires the right to conduct on the into the sea bottom to depths less than
OCS, in accordance with appropriate those specified in the definition of a
statutes, regulations, and stipulations: deep stratigraphic test.
(1) Geological exploration for mineral Significant archaeological resource
resources; means those archaeological resources
(2) Geophysical exploration for min- that meet the criteria of significance
eral resources; for eligibility to the National Register
(3) Geological scientific research; or of Historic Places as defined in 36 CFR
(4) Geophysical scientific research. 60.4.
Permittee means the person author-
Third Party means any person other
ized by a permit issued pursuant to
than the permittee or a representative
this part to conduct activities on the
of the United States, including all per-
OCS.
sons who obtain data or information
Person means a citizen or national of
acquired under a permit from the per-
the United States; an alien lawfully ad-
mittee, or from another third party, by
mitted for permanent residence in the
sale, trade, license agreement, or other
United States as defined in section 8
means.
U.S.C. 1101(a)(20); a private, public, or
municipal corporation organized under Violation means a failure to comply
the laws of the United States or of any with any provision of the Act, or a pro-
State or territory thereof; and associa- vision of a regulation or order issued
tions of such citizens, nationals, resi- under the Act, or any provision of a
dent aliens, or private, public, or mu- lease, license, or permit issued under
nicipal corporations, States, or polit- the Act.
ical subdivisions of States or anyone You means a person who applies for
operating in a manner provided for by and/or obtains a permit, or files a No-
treaty or other applicable inter- tice to conduct geological or geo-
national agreements. The term does physical exploration or scientific re-
not include Federal agencies. search related to oil, gas, and sulphur
Processed geological or geophysical in- in the OCS.
formation means data collected under a
§ 251.2 [Reserved]
permit and later processed or reproc-
essed. Processing involves changing the § 251.3 Authority and applicability of
form of data so as to facilitate inter- this part.
pretation. Processing operations may
include, but are not limited to, apply- BSEE authorizes you to conduct ex-
ing corrections for known perturbing ploration or scientific research activi-
causes, rearranging or filtering data, ties under this part in accordance with
and combining or transforming data the Act, the regulations in this part,
elements. Reprocessing is the addi- orders of the Director/Regional Direc-
tional processing other than ordinary tor, and other applicable statutes, reg-
processing used in the general course of ulations, and amendments.
evaluation. Reprocessing operations (a) This part does not apply to G&G
may include varying identified param- exploration conducted by or on behalf
eters for the detailed study of a specific of the lessee on a lease in the OCS.
problem area. Reprocessing may occur Refer to 30 CFR part 550 if you plan to
several years after the original proc- conduct G&G activities related to oil,
essing date. Reprocessing is determined gas, or sulphur under terms of a lease.
to be completed on the date that the (b) Federal agencies are exempt from
reprocessed information is first avail- the regulations in this part.

able in a useable format for in-house (c) G&G exploration or G&G sci-
interpretation by BOEM or the per- entific research related to minerals
288
other than oil, gas, and sulphur is cov- mary must meet the following require-
ered by regulations at 30 CFR part 580. ments:
(A) You must concentrate on the
§§ 251.4–251.6 [Reserved] issues specific to the site(s) of drilling
activity. However, you only need to
§ 251.7 Test drilling activities under a summarize data and information dis-
permit.
cussed in any environmental reports,
(a) [Reserved] analyses, or impact statements pre-
(b) Deep stratigraphic tests. You must pared for the geographic area of the
submit to the appropriate BOEM or drilling activity.
BSEE Regional Director, at the address (B) You must list referenced mate-
in 30 CFR 551.5(d) for BOEM or 30 CFR rial. Include brief descriptions and a
254.7 for BSEE, a drilling plan (sub- statement of where the material is
mitted to BOEM), an environmental re- available for inspection.
port (submitted to BOEM), an Applica- (C) You must refer only to data that
tion for Permit to Drill (Form BSEE– are available to BOEM.
0123) (submitted to BSEE), and a Sup- (ii) Details about your project such
plemental APD Information Sheet as:
(Form BSEE–0123S) (submitted to (A) A list and description of new or
BSEE) as follows: unusual technologies;
(1) Drilling plan. The drilling plan (B) The location of travel routes for
must include: supplies and personnel;
(i) The proposed type, sequence, and (C) The kinds and approximate levels
timetable of drilling activities; of energy sources;
(ii) A description of your drilling rig, (D) The environmental monitoring
indicating the important features with systems; and
special attention to safety, pollution (E) Suitable maps and diagrams
prevention, oil-spill containment and showing details of the proposed project
cleanup plans, and onshore disposal layout.
procedures; (iii) A description of the existing en-
(iii) The location of each deep strati- vironment. For this section, you must
graphic test you will conduct, includ- include the following information on
ing the location of the surface and pro- the area:
jected bottomhole of the borehole; (A) Geology;
(iv) The types of geological and geo- (B) Physical oceanography;
physical survey instruments you will (C) Other uses of the area;
use before and during drilling; (D) Flora and fauna;
(v) Seismic, bathymetric, sidescan (E) Existing environmental moni-
sonar, magnetometer, or other geo- toring systems; and
physical data and information suffi- (F) Other unusual or unique charac-
cient to evaluate seafloor characteris- teristics that may affect or be affected
tics, shallow geologic hazards, and by the drilling activities.
structural detail across and in the vi- (iv) A description of the probable im-
cinity of the proposed test to the total pacts of the proposed action on the en-
depth of the proposed test well; and vironment and the measures you pro-
(vi) Other relevant data and informa- pose for mitigating these impacts.
tion that the BOEM Regional Director (v) A description of any unavoidable
requires. or irreversible adverse effects on the
(2) Environmental report. The environ- environment that could occur.
mental report must include all of the (vi) Other relevant data that the
following material: BOEM Regional Director requires.
(i) A summary with data and infor- (3) Copies for coastal States. You must
mation available at the time you sub- submit copies of the drilling plan and
mitted the related drilling plan. BOEM environmental report to the BOEM Re-
will consider site-specific data and in- gional Director for transmittal to the
formation developed since the most re- Governor of each affected coastal State
cent environmental impact statement and the coastal zone management

or other environmental impact anal- agency of each affected coastal State
ysis in the immediate area. The sum- that has an approved program under
289
§ 251.7 30 CFR Ch. II (7–1–18 Edition)
the Coastal Zone Management Act. take no action that may adversely af-
(The BOEM Regional Director will fect the archaeological resource unless
make the drilling plan and environ- further investigations determine that
mental report available to appropriate the resource is not archaeologically
Federal agencies and the public accord- significant.
ing to the Department of the Interior’s (iii) If you discover any archae-
policies and procedures). ological resource while drilling, you
(4) Certification of coastal zone manage- must immediately halt drilling and re-
ment program consistency and State con- port the discovery to the BOEM Re-
currence. When required under an ap- gional Director. If investigations deter-
proved coastal zone management pro- mine that the resource is significant,
gram of an affected State, your drilling the BOEM Regional Director will in-
plan must include a certification that
form you how to protect it.
the proposed activities described in the
(6) Application for permit to drill
plan comply with enforceable policies
of, and will be conducted in a manner (APD). Before commencing deep strati-
consistent with such State’s program. graphic test drilling activities under an
The BOEM Regional Director may not approved drilling plan, you must sub-
approve any of the activities described mit an APD and a Supplemental APD
in the drilling plan unless the State Information Sheet (Forms BSEE–0123
concurs with the consistency certifi- and BSEE–0123S) and receive approval.
cation or the Secretary of Commerce You must comply with all regulations
makes the finding authorized by sec- relating to drilling operations in 30
tion 307(c)(3)(B)(iii) of the Coastal Zone CFR part 250.
Management Act. (7) Revising an approved drilling plan.
(5) Protecting archaeological resources. Before you revise an approved drilling
If the BOEM Regional Director believes plan, you must obtain the BOEM Re-
that an archaeological resource may gional Director’s approval.
exist in the area that may be affected (8) After drilling. When you complete
by drilling, the BOEM Regional Direc- the test activities, you must perma-
tor will notify you of the need to pre- nently plug and abandon the boreholes
pare an archaeological report under 30 of all deep stratigraphic tests in com-
CFR 551.7(b)(5). pliance with 30 CFR part 250. If the
(i) If the evidence suggests that an tract on which you conducted a deep
archaeological resource may be stratigraphic test is leased to another
present, you must: party for exploration and development,
(A) Locate the site of the drilling so and if the lessee has not disturbed the
as to not adversely affect the area borehole, BSEE will hold you and not
where the archaeological resources
the lessee responsible for problems as-
may be, or
sociated with the test hole.
(B) Establish to the satisfaction of
the BOEM Regional Director that an (9) Deadline for completing a deep strat-
archaeological resource does not exist igraphic test. If your deep stratigraphic
or will not be adversely affected by test well is within 50 geographic miles
drilling. This must be done by further of a tract that BOEM has identified for
archaeological investigation, con- a future lease sale, as listed on the cur-
ducted by an archaeologist and a geo- rently approved OCS leasing schedule,
physicist, using survey equipment and you must complete all drilling activi-
techniques deemed necessary by the ties and submit the data and informa-
Regional Director. A report on the in- tion to the BOEM Regional Director at
vestigation must be submitted to the least 60 days before the first day of the
BOEM Regional Director for review. month in which BOEM schedules the
(ii) If the BOEM Regional Director lease sale. However, the BOEM Re-
determines that an archaeological regional Director may extend your per-
source is likely to be present in the mit duration to allow you to complete
area that may be affected by drilling, drilling activities and submit data and
and may be adversely affected by drill- information if the extension is in the

ing, the BOEM Regional Director will National interest.
notify you immediately. You must (c)–(d) [Reserved]
290
§§ 251.8–251.14 [Reserved] mental Enforcement (BSEE). In addi-

tion, this part establishes procedures
§ 251.15 Authority for information col- for the Director to make available cer-
lection. tain information to the Governors of
The Office of Management and Budg- affected States and, upon request, to
et has approved the information collec- the executives of affected local govern-
tion requirements in this part under 44 ments in accordance with the provi-
U.S.C. 3501 et seq. and assigned OMB sions of the Freedom of Information
control number 1014–0025 as it pertains Act and the Act.
to Application for Permit to Drill
(APD, Form BSEE–0123), and Supple- § 252.2 Definitions.
mental APD Information Sheet (Form When used in the regulations in this
BSEE–0123S). The title of this informa- part, the following terms shall have
tion collection is ‘‘30 CFR Part 250, Ap- the following meanings:
plication for Permit to Drill (APD, Re-
Act refers to the Outer Continental
vised APD) Supplemental APD Informa-
Shelf Lands Act, as amended (43 U.S.C.
tion Sheet, and all supporting docu-
1331 et seq.).
ments.’’
Affected local government means the
[81 FR 36151, June 6, 2016] principal governing body of a locality
which is in an affected State and is
PART 252—OUTER CONTINENTAL identified by the Governor of that
SHELF (OCS) OIL AND GAS IN- State as a locality which will be sig-
FORMATION PROGRAM nificantly affected by oil and gas ac-
tivities on the OCS.
Sec. Affected State means, with respect to
252.1 Purpose. any program, plan, lease sale, or other
252.2 Definitions. activity, proposed, conducted, or ap-
252.3 Oil and gas data and information to be proved pursuant to the provisions of
provided for use in the OCS Oil and Gas
Information Program.
the Act, any State:
252.4 Summary Report to affected States. (1) The laws of which are declared,
252.5 Information to be made available to pursuant to section 4(a)(2)(A) of the
affected States. Act, to be the law of the United States
252.6 Freedom of Information Act require- for the portion of the OCS on which
ments. such activity is, or is proposed to be,
252.7 Privileged and proprietary data and
information to be made available to af-
conducted;
fected States. (2) Which is, or is proposed to be, di-
rectly connected by transportation fa-
AUTHORITY: OCS Lands Act, 43 U.S.C. 1331
et seq., as amended, 92 Stat. 629; Freedom of
cilities to any artificial island or in-
Information Act, 5 U.S.C. 552; § 252.3 also stallations and other devices perma-
issued under Pub. L. 99–190 making con- nently, or temporarily attached to the
tinuing appropriations for Fiscal Year 1986, seabed;
and for other purposes. (3) Which is receiving, or in accord-
SOURCE: 76 FR 64462, Oct. 18, 2011, unless ance with the proposed activity will re-
otherwise noted. ceive, oil for processing, refining, or
transshipment which was extracted
§ 252.1 Purpose. from the OCS and transported directly
The purpose of this part is to imple- to such State by means of vessels or by
ment the provisions of section 26 of the a combination of means including ves-
Act (43 U.S.C. 1352). This part supple- sels;
ments the procedures and requirements (4) Which is designated by the Direc-
contained in 30 CFR parts 250, 251, 550, tor as a State in which there is a sub-
and 551 and provides procedures and re- stantial probability of significant im-
quirements for the submission of oil pact on or damage to the coastal, ma-
and gas data and information resulting rine, or human environment, or a State
from exploration, development, and in which there will be significant
production operations on the Outer changes in the social, governmental, or

Continental Shelf (OCS) to the Direc- economic infrastructure, resulting
tor, Bureau of Safety and Environ- from the exploration, development, and
291
§ 252.2 30 CFR Ch. II (7–1–18 Edition)
production of oil and gas anywhere on the drilling of a well in which a dis-
the OCS; or covery of oil or natural gas in paying
(5) In which the Director finds that quantities is made and the drilling of
because of such activity there is, or any additional delineation well after
will be, a significant risk of serious such discovery which is needed to de-
damage, due to factors such as pre- lineate any reservoir and to enable the
vailing winds and currents, to the ma- lessee to determine whether to proceed
rine or coastal environment in the with development and production.
event of any oil spill, blowout, or re- Governor means the Governor of a
lease of oil or gas from vessels, pipe- State, or the person or entity des-
lines, or other transshipment facilities. ignated by, or pursuant to, State law
Analyzed geological information means to exercise the powers granted to a
data collected under a permit or a lease Governor pursuant to the Act.
which have been analyzed. Analysis Information, when used without a
may include, but is not limited to, qualifying adjective, includes analyzed
identification of lithologic and fossil geological information, processed geo-
content, core analyses, laboratory physical information, interpreted geo-
analyses of physical and chemical logical information, and interpreted
properties, logs or charts of electrical, geophysical information.
radioactive, sonic, and other well logs, Interpreted geological information
and descriptions of hydrocarbon shows means knowledge, often in the form of
or hazardous conditions. schematic cross sections and maps, de-
Area adjacent to a State means all of veloped by determining the geological
that portion of the OCS included with- significance of data and analyzed geo-
in a planning area if such planning logical information.
area is bordered by that State. The Interpreted geophysical information
portion of the OCS in the Navarin means knowledge, often in the form of
Basin Planning Area is deemed to be schematic cross sections and maps, de-
adjacent to the State of Alaska. The veloped by determining the geological
States of New York and Rhode Island significance of geophysical data and
are deemed to be adjacent to both the processed geophysical information.
Mid-Atlantic Planning Area and the Lease means any form of authoriza-
North Atlantic Planning Area. tion which is issued under section 8 or
Data means facts and statistics or maintained under section 6 of the Act
samples which have not been analyzed and which authorizes exploration for,
or processed. and development and production of, oil
Development means those activities or natural gas, or the land covered by
which take place following discovery of such authorization, whichever is re-
oil or natural gas in paying quantities, quired by the context.
including geophysical activity, drill- Lessee means the party authorized by
ing, platform construction, and oper- a lease, or an approved assignment
ation of all onshore support facilities, thereof, to explore for and develop and
and which are for the purpose of ulti- produce the leased deposits in accord-
mately producing the oil and gas dis- ance with the regulations in 30 CFR
covered. part 550, including all parties holding
Director means the Director of the such authority by or through the les-
Bureau of Safety and Environmental see.
Enforcement (BSEE) of the U.S. De- Outer Continental Shelf (OCS) means
partment of the Interior or a designee all submerged lands which lie seaward
of the Director. and outside of the area of lands be-
Exploration means the process of neath navigable waters as defined in
searching for oil and natural gas, in- the Submerged Lands Act (67 Stat. 29)
cluding: and of which the subsoil and seabed ap-
(1) Geophysical surveys where mag- pertain to the United States and are
netic, gravity, seismic, or other sys- subject to its jurisdiction and control.
tems are used to detect or imply the Permittee means the party authorized
presence of such oil or natural gas, and by a permit issued pursuant to 30 CFR
(2) Any drilling, whether on or off parts 251 and 551 to conduct activities
known geological structures, including on the OCS.
292
Processed geophysical information the data and information if the lessee

means data collected under a permit or or permittee requests reimbursement.
a lease which have been processed. The cost shall be computed and paid in
Processing involves changing the form accordance with the applicable provi-
of data so as to facilitate interpreta- sions of paragraph (e)(1) of this section.
tion. Processing operations may in- (2) Whenever a lessee or permittee
clude, but are not limited to, applying provides any data or information, at
corrections for known perturbing the request of the Director and specifi-
causes, rearranging or filtering data, cally for use in the OCS Oil and Gas In-
and combining or transforming data formation Program, in a form and
elements. manner of processing not normally uti-
Production means those activities lized by the lessee or permittee in the
which take place after the successful normal conduct of business, the Direc-
completion of any means for the re- tor shall pay the lessee or permittee, if
moval of oil or natural gas, including the lessee or permittee requests reim-
such removal, field operations, transfer bursement, the reasonable cost of proc-
of oil or natural gas to shore, operation essing and reproducing the requested
monitoring, maintenance, and data and information. The cost is to be
workover drilling. computed and paid in accordance with
Secretary means the Secretary of the the applicable provisions of paragraph
Interior or a designee of the Secretary. (e)(2) of this section.
[76 FR 64462, Oct. 18, 2011, as amended at 81 (c) Data or information requested by
FR 36151, June 6, 2016] the Director shall be provided as soon
as practicable, but not later than 30
§ 252.3 Oil and gas data and informa- days following receipt of the Director’s
tion to be provided for use in the request, unless, for good reason, the Di-
OCS Oil and Gas Information Pro- rector authorizes a longer time period
gram. for the submission of the requested
(a) Any permittee or lessee engaging data or information.
in the activities of exploration for, or (d) The Director reserves the right to
development and production of, oil and disclose any data or information ac-
gas on the OCS shall provide the Direc- quired from a lessee or permittee to an
tor access to all data and information independent contractor or agent for
obtained or developed as a result of the purpose of reproducing, processing,
such activities, including geological reprocessing, or interpreting such data
data, geophysical data, analyzed geo- or information. When practicable, the
logical information, processed and re- Director shall notify the lessee(s) or
processed geophysical information, in- permittee(s) who provided the data or
terpreted geophysical information, and information of the intent to disclose
interpreted geological information. the data or information to an inde-
Copies of these data and information pendent contractor or agent. The Di-
and any interpretation of these data rector’s notice of intent will afford the
and information shall be provided to permittee(s) or lessee(s) a period of not
the Director upon request. No per- less than 5 working days within which
mittee or lessee submitting an inter- to comment on the intended action.
pretation of data or information, where When the Director so notifies a lessee
such interpretation has been submitted or permittee of the intent to disclose
in good faith, shall be held responsible data or information to an independent
for any consequence of the use of or re- contractor or agent, all other owners of
liance upon such interpretation. such data or information shall be
(b)(1) Whenever a lessee or permittee deemed to have been notified of the Di-
provides any data or information, at rector’s intent. Prior to any such dis-
the request of the Director and specifi- closure, the contractor or agent shall
cally for use in the OCS Oil and Gas In- be required to execute a written com-
formation Program in a form and man- mitment not to disclose any data or in-
ner of processing which is utilized by formation to anyone without the ex-
the lessee or permittee in the normal press consent of the Director, and not
conduct of business, the Director shall to make any disclosure or use of the
pay the reasonable cost of reproducing data or information other than that
293
§ 252.4 30 CFR Ch. II (7–1–18 Edition)
provided in the contract. Contracts be- § 252.4 Summary Report to affected

tween BSEE and independent contrac- States.
tors shall be available to the lessee(s) (a) The Director, as soon as prac-
or permittee(s) for inspection. In the ticable after analysis, interpretation,
event of any unauthorized use or dis- and compilation of oil and gas data and
closure of data or information by the information developed by BSEE or fur-
contractor or agent, or by an employee nished by lessees, permittees, or other
thereof, the responsible contractor or government agencies, shall make avail-
agent or employee thereof shall be lia- able to affected States and, upon re-
ble for penalties pursuant to section 24 quest, to the executive of any affected
of the Act. local government, a Summary Report
(e)(1) After delivery of data or infor- of data and information designed to as-
mation in accordance with paragraph sist them in planning for the onshore
(b)(1) of this section and upon receipt impacts of potential OCS oil and gas
of a request for reimbursement and a development and production. The Di-
determination by the Director that the rector shall consult with affected
requested reimbursement is proper, the States and other interested parties to
lessee or permittee shall be reimbursed define the nature, scope, content, and
for the cost of reproducing the data or timing of the Summary Report. The
information at the lessee’s or permit- Director may consult with affected
tee’s lowest rate or at the lowest com- States and other interested parties re-
mercial rate established in the area, garding subsequent revisions in the
whichever is less. Requests for reim- definition of the nature, scope, con-
bursement must be made within 60 tent, and timing of the Summary Re-
days of the delivery date of the data or port. The Summary Report shall not
information requested under paragraph contain data or information which the
(b)(1) of this section. Director determines is exempt from
(2) After delivery of data or informa- disclosure in accordance with this part.
tion in accordance with paragraph The Summary Report shall not contain
(b)(3) of this section, and upon receipt data or information the release of
of a request for reimbursement and a which the Director determines would
determination by the Director that the unduly damage the competitive posi-
requested reimbursement is proper, the tion of the lessee or permittee who pro-
lessee or permittee shall be reimbursed vided the data or information which
for the cost of processing or reprocess- the Director has processed, analyzed,
ing and of reproducing the requested or interpreted during the development
data or information. Requests for reim- of the Summary Report. The Summary
bursement must be made within 60 Report shall include:
days of the delivery date of the data or (1) Estimates of oil and gas reserves;
information and shall be for only the estimates of the oil and gas resources
costs attributable to processing or re- that may be found within areas which
processing and reproducing, as distin- the Secretary has leased or plans to
guished from the costs of data acquisi- offer for lease; and when available, pro-
tion. jected rates and volumes of oil and gas
(3) Requests for reimbursement are to be produced from leased areas;
to contain a breakdown of costs in suf- (2) Magnitude of the approximate
ficient detail to allow separation of re- projections and timing of development,
production, processing, and reprocess- if and when oil or gas, or both, is dis-
ing costs from acquisition and other covered;
costs. (3) Methods of transportation to be
(f) Each Federal Department or used, including vessels and pipelines
Agency shall provide the Director with and approximate location of routes to
any data which it has obtained pursu- be followed; and
ant to section 11 of the Act and any (4) General location and nature of
other information which may be nec- near-shore and onshore facilities ex-
essary or useful to assist the Director pected to be utilized.

in carrying out the provisions of the (b) When the Director determines
Act. that significant changes have occurred
294
in the information contained in a Sum- closure under paragraph (a) of this sec-
mary Report, the Director shall pre- tion shall be provided to any affected
pare and make available the new or re- State or be made available to the exec-
vised information to each affected utive of any affected local government
State, and, upon request, to the execu- or to the public unless the lessee, or
tive of any affected local government. the permittee and all persons to whom
such permittee has sold such data or
§ 252.5 Information to be made avail- information under promise of confiden-
able to affected States.
tiality, agree to such action.
(a) The BOEM Director shall prepare
an index of OCS information (see 30 § 252.7 Privileged and proprietary
CFR 556.10). The index shall list all rel- data and information to be made
evant actual or proposed programs, available to affected States.
plans, reports, environmental impact (a)(1) The Governor of any affected
statements, nominations information, State may designate an appropriate
environmental study reports, lease sale State official to inspect, at a regional
information, and any similar type of location which the Director shall des-
relevant information, including modi- ignate, any privileged or proprietary
fications, comments, and revisions pre- data or information received by the Di-
pared or directly obtained by the Di- rector regarding any activity in an
rector under the Act. The index shall area adjacent to such State, except
be sent to affected States and, upon re- that no such inspection shall take
quest, to any affected local govern- place prior to the sale of a lease cov-
ment. The public shall be informed of ering the area in which such activity
the availability of the index. was conducted.
(b) Upon request, the Director shall
(2)(i) Except as provided for in 30 CFR
transmit to affected States, affected
250.197, 30 CFR 550.197, and 30 CFR
local governments, and the public a
551.14, no privileged or proprietary data
copy of any information listed in the
or information will be transmitted to
index which is subject to the control of
any affected State unless the lessee
BOEM, in accordance with the require-
who provided the privileged or propri-
ments and subject to the limitations of
etary data or information agrees in
the Freedom of Information Act (5
U.S.C.552) and implementing regula- writing to the transmittal of the data
tions. The Director shall not transmit or information.
or make available any information (ii) Except as provided for in 30 CFR
which he determines is exempt from 250.197, 30 CFR 550.197, and 30 CFR
disclosure in accordance with this part. 551.14, no privileged or proprietary data
or information will be transmitted to
§ 252.6 Freedom of Information Act re- any affected State unless the permittee
quirements. and all persons to whom the permittee
(a) The Director shall make data and has sold the data or information under
information available in accordance promise of confidentiality agree in
with the requirements and subject to writing to the transmittal of the data
the limitations of the Freedom of In- or information.
formation Act (5 U.S.C. 552), the regu- (3) Knowledge obtained by a State of-
lations contained in 43 CFR part 2 ficial who inspects data or information
(Records and Testimony), the require- under paragraph (a)(1) or who receives
ments of the Act, and the regulations data or information under paragraph
contained in 30 CFR parts 250 and 550 (a)(2) of this section shall be subject to
(Oil and Gas and Sulphur Operations in the requirements and limitations of
the Outer Continental Shelf) and 30 the Freedom of Information Act (5
CFR parts 251 and 551 (Geological and U.S.C. 552), the regulations contained
Geophysical Explorations of the Outer in 43 CFR part 2 (Records and Testi-
Continental Shelf). mony), the Act (92 Stat. 629), the regu-
(b) Except as provided in § 252.7 or in lations contained in 30 CFR parts 250
30 CFR parts 250, 251, 550, and 551, no and 550 (Oil and Gas and Sulphur Oper-
data or information determined by the ations in the Outer Continental Shelf),
Director to be exempt from public dis- the regulations contained in 30 CFR
295
parts 251 and 551 (Geological and Geo- raise as a defense any claim of sov-
physical Explorations of the Outer ereign immunity, or any claim that the
Continental Shelf), and the regulations employee who revealed the privileged
contained in 30 CFR parts 252 and 552 or proprietary data or information
(Outer Continental Shelf Oil and Gas which is the basis of such suit was act-
Information Program). ing outside the scope of the person’s
(4) Prior to the transmittal of any employment in revealing such data or
privileged or proprietary data or infor- information.
mation to any State, or the grant of (c) If the Director finds that any
access to a State official to such data State cannot or does not comply with
or information, the Secretary shall the conditions described in the agree-
enter into a written agreement with ment entered into pursuant to para-
the Governor of the State in accord- graph (a)(4) of this section, the Direc-
ance with section 26(e) of the Act (43 tor shall thereafter withhold trans-
U.S.C. 1352). In that agreement the mittal and deny access for inspection
State shall agree, as a condition prece- of privileged or proprietary data or in-
dent to receiving or being granted ac- formation to such State until the Di-
cess to such data or information to: (i) rector finds that such State can and
Protect and maintain the confiden- will comply with those conditions.
tiality of privileged or proprietary data
and information in accordance with the PART 253 [RESERVED]
laws and regulations listed in para-
graph (a)(3) of this section; PART 254—OIL-SPILL RESPONSE RE-
(ii) Waive the defenses as set forth in QUIREMENTS FOR FACILITIES LO-
paragraph (b)(2) of this section; and
(iii) Hold the United States harmless
CATED SEAWARD OF THE COAST
from any violations of the agreement LINE
to protect the confidentiality of privi-
leged or proprietary data or informa- Subpart A—General
tion by the State or its employees or Sec.
contractors. 254.1 Who must submit an oil spill response
(b)(1) Whenever any employee of the plan (OSRP)?
Federal Government or of any State re- 254.2 When must I submit an OSRP?
veals in violation of the Act or of the 254.3 May I cover more than one facility in
my OSRP?
provisions of the regulations imple- 254.4 May I reference other documents in
menting the Act, privileged or propri- my OSRP?
etary data or information obtained 254.5 General response plan requirements.
pursuant to the regulations in this 254.6 Definitions.
chapter, the lessee or permittee who 254.7 How do I submit my OSRP to the
supplied such information to the Direc- BSEE?
tor or any other Federal official, and 254.8 May I appeal decisions under this
part?
any person to whom such lessee or per- 254.9 Authority for information collection.
mittee has sold such data or informa-
tion under the promise of confiden- Subpart B—Oil-Spill Response Plans for
tiality, may commence a civil action Outer Continental Shelf Facilities
for damages in the appropriate district
court of the United States against the 254.20 Purpose.
254.21 How must I format my OSRP?
Federal Government or such State, as 254.22 What information must I include in
the case may be. Any Federal or State the ‘‘Introduction and OSRP contents’’
employee who is found guilty of failure section?
to comply with any of the require- 254.23 What information must I include in
ments of this section shall be subject the ‘‘Emergency response action plan’’
to the penalties described in section 24 section?
of the Act (43 U.S.C. 1350). 254.24 What information must I include in
the ‘‘Equipment inventory’’ appendix?
(2) In any action commenced against
254.25 What information must I include in
the Federal Government or a State
the ‘‘Contractual agreements’’ appendix?

pursuant to paragraph (b)(1) of this sec- 254.26 What information must I include in
tion, the Federal Government or such the ‘‘Worst case discharge scenario’’ ap-
State, as the case may be, may not pendix?
296
254.27 What information must I include in SOURCE: 76 FR 64462, Oct. 18, 2011, unless
the ‘‘Dispersant use plan’’ appendix? otherwise noted.
the ‘‘In situ burning plan’’ appendix?
Subpart A—General
the ‘‘Training and drills’’ appendix?
254.30 When must I revise my OSRP?
§ 254.1 Who must submit an oil spill re-
sponse plan (OSRP)?
Subpart C—Related Requirements for (a) If you are the owner or operator
Outer Continental Shelf Facilities of an oil handling, storage, or transpor-
tation facility, and it is located sea-
254.40 Records.
254.41 Training your response personnel.
ward of the coast line, you must sub-
254.42 Exercises for your response personnel mit an oil spill response plan (OSRP)
and equipment. to BSEE for approval. Your OSRP
254.43 Maintenance and periodic inspection must demonstrate that you can re-
of response equipment. spond quickly and effectively whenever
254.44 Calculating response equipment effec- oil is discharged from your facility.
tive daily recovery capacities. Refer to § 254.6 for the definitions of oil,
254.45 Verifying the capabilities of your re-
facility, and coast line if you have any
sponse equipment.
254.46 Whom do I notify if an oil spill oc- doubts about whether to submit a plan.
curs? (b) You must maintain a current
254.47 Determining the volume of oil of your OSRP for an abandoned facility until
worst case discharge scenario. you physically remove or dismantle
the facility or until the Chief, Oil Spill
Subpart D—Oil-Spill Response Require- Preparedness Division (OSPD) notifies
ments for Facilities Located in State you in writing that a plan is no longer
Waters Seaward of the Coast Line required.
254.50 Spill response plans for facilities lo- (c) Owners or operators of offshore
cated in State waters seaward of the pipelines carrying essentially dry gas
coast line. do not need to submit a plan. You
254.51 Modifying an existing OCS OSRP. must, however, submit a plan for a
254.52 Following the format for an OCS pipeline that carries:
OSRP. (1) Oil;
254.53 Submitting an OSRP developed under
(2) Condensate that has been injected
State requirements.
254.54 Spill prevention for facilities located into the pipeline; or
in State waters seaward of the coast line. (3) Gas and naturally occurring con-
254.55 Spill response plans for facilities lo- densate.
cated in Alaska State waters seaward of (d) If you are in doubt as to whether
the coast line in the Chukchi and Beau- you must submit a plan for an offshore
fort Seas. facility or pipeline, you should check
with the Chief, OSPD.
Subpart E—Oil-Spill Response Require-
(e) If your facility is located land-
ments for Facilities Located on the
ward of the coast line, but you believe
Arctic OCS
your facility is sufficiently similar to
254.65 Purpose. OCS facilities that it should be regu-
254.66–254.69 [Reserved] lated by BSEE, you may contact the
254.70 What are the additional requirements Chief, OSPD, offer to accept BSEE ju-
for facilities conducting exploratory risdiction over your facility, and re-
drilling from a MODU on the Arctic OCS?
254.71–254.79 [Reserved]
quest that BSEE seek from the agency
254.80 What additional information must I with jurisdiction over your facility a
include in the ‘‘Emergency response ac- relinquishment of that jurisdiction.
tion plan’’ section for facilities con- [76 FR 64462, Oct. 18, 2011, as amended at 81
ducting exploratory drilling from a
FR 36151, June 6, 2016]
MODU on the Arctic OCS?
254.81–254.89 [Reserved]
§ 254.2 When must I submit an OSRP?
254.90 What are the additional requirements
for exercises of your response personnel (a) You must submit, and BSEE must
and equipment for facilities conducting approve, an OSRP that covers each fa-
exploratory drilling from a MODU on the cility located seaward of the coast line
Arctic OCS? before you may use that facility. To
AUTHORITY: 33 U.S.C. 1321. continue operations, you must operate
297
§ 254.3 30 CFR Ch. II (7–1–18 Edition)
the facility in compliance with the tain additional information if nec-

OSRP. essary for compliance with appropriate
(b) Despite the provisions of para- laws and regulations.
graph (a) of this section, you may oper- [81 FR 36151, June 6, 2016]
ate your facility after you submit your
OSRP while BSEE reviews it for ap- § 254.4 May I reference other docu-
proval. To operate a facility without ments in my OSRP?
an approved OSRP, you must certify in You may reference information con-
writing to the Chief, OSPD that you tained in other readily accessible docu-
have the capability to respond, to the ments in your OSRP. Examples of doc-
maximum extent practicable, to a uments that you may reference are the
worst case discharge or a substantial National Contingency Plan (NCP),
threat of such a discharge. The certifi-
Area Contingency Plan (ACP), BSEE or
cation must show that you have en-
BOEM environmental documents, and
sured by contract, or other means ap-
Oil Spill Removal Organization (OSRO)
proved by the Chief, OSPD, the avail-
documents that are readily accessible
ability of private personnel and equip-
to the Chief, OSPD. You must ensure
ment necessary to respond to the dis-
that the Chief, OSPD, possesses or is
charge. Verification from the organiza-
provided with copies of all OSRO docu-
tion(s) providing the personnel and
ments you reference. You should con-
equipment must accompany the certifi-
tact the Chief, OSPD, if you want to
cation. BSEE will not allow you to op-
know whether a reference is accept-
erate a facility for more than 2 years
able.
without an approved OSRP.
[81 FR 36152, June 6, 2016]
[81 FR 36151, June 6, 2016]
§ 254.5 General response plan require-
§ 254.3 May I cover more than one fa- ments.
cility in my OSRP?
(a) The OSRP must provide for re-
(a) Your OSRP may be for a single
sponse to an oil spill from the facility.
lease or facility or a group of leases or
You must immediately carry out the
facilities. All the leases or facilities in
provisions of the OSRP whenever there
your plan must have the same owner or
is a release of oil from the facility. You
operator (including affiliates) and must
must also carry out the training,
be located in the same BSEE Region
equipment testing, and periodic drills
(see definition of Regional OSRP in
described in the OSRP, and these meas-
§ 254.6).
ures must be sufficient to ensure the
(b) Regional OSRPs must address all
safety of the facility and to mitigate or
the elements required for an OSRP in
prevent a discharge or a substantial
subpart B, or subpart D of this part, as
threat of a discharge.
appropriate.
(b) The OSRP must be consistent
(c) When developing a Regional
with the National Contingency Plan
OSRP, you may group leases or facili-
and the appropriate Area Contingency
ties subject to the approval of the
Plan(s).
Chief, OSPD, for the purposes of:
(c) Nothing in this part relieves you
(1) Calculating response times;
from taking all appropriate actions
(2) Determining quantities of re-
necessary to immediately abate the
sponse equipment;
(3) Conducting oil-spill trajectory source of a spill and remove any spills
analyses; of oil.
(4) Determining worst case discharge (d) In addition to the requirements
scenarios; and listed in this part, you must provide
(5) Identifying areas of special eco- any other information the Chief,
nomic and environmental importance OSPD, requires for compliance with ap-
that may be impacted and the strate- propriate laws and regulations.
gies for their protection. [76 FR 64462, Oct. 18, 2011, as amended at 81
(d) The Chief, OSPD, may specify FR 36152, June 6, 2016]
how to address the elements of a Re-

gional OSRP. The Chief, OSPD, also § 254.6 Definitions.
may require that Regional OSRPs con- For the purposes of this part:
298
Adverse weather conditions means, for shore drilling unit is classified as a fa-
the purposes of this part, weather con- cility when engaged in drilling or
ditions found in the operating area downhole operations.
that make it difficult for response Ice intervention practices mean the
equipment and personnel to clean up or equipment, vessels, and procedures
remove spilled oil or hazardous sub- used to increase oil encounter rates
stances. These conditions include, but and the effectiveness of spill response
are not limited to: fog, inhospitable techniques and equipment when sea ice
water and air temperatures, wind, sea is present.
ice, extreme cold, freezing spray, snow, Maximum extent practicable means
currents, sea states, and extended peri- within the limitations of available
ods of low light. Adverse weather con- technology, as well as the physical lim-
ditions do not refer to conditions under itations of personnel, when responding
which it would be dangerous or impos- to a worst case discharge in adverse
sible to respond to a spill, such as a weather conditions.
hurricane. National Contingency Plan means the
Arctic OCS means the Beaufort Sea National Oil and Hazardous Substances
and Chukchi Sea Planning Areas (for Pollution Contingency Plan prepared
more information on these areas, see and published under section 311(d) of
the Proposed Final OCS Oil and Gas the FWPCA, (33 U.S.C. 1321(d)) or re-
Leasing Program for 2012–2017 (June
vised under section 105 of the Com-
2012) at http://www.boem.gov/Oil-and-
prehensive Environmental Response
Gas-Energy-Program/Leasing/Five-Year-
Compensation and Liability Act (42
Program/2012-2017/Program-Area-Maps/
U.S.C. 9605).
index.aspx).
Area Contingency Plan means an Area National Contingency Plan Product
Contingency Plan prepared and pub- Schedule means a schedule of
lished under section 311(j) of the Fed- dispersants and other chemical or bio-
eral Water Pollution Control Act logical products, maintained by the
(FWPCA). Environmental Protection Agency,
Chief, OSPD means the Chief, BSEE that may be authorized for use on oil
Oil Spill Preparedness Division or des- discharges in accordance with the pro-
ignee. cedures found at 40 CFR 300.910.
Coast line means the line of ordinary Oil means oil of any kind or in any
low water along that portion of the form, including but not limited to pe-
coast which is in direct contact with troleum, fuel oil, sludge, oil refuse, and
the open sea and the line marking the oil mixed with wastes other than
seaward limit of inland waters. dredged spoil. This also includes hydro-
Discharge means any emission (other carbons produced at the wellhead in
than natural seepage), intentional or liquid form (includes distillates or con-
unintentional, and includes, but is not densate associated with produced nat-
limited to, spilling, leaking, pumping, ural gas), and condensate that has been
pouring, emitting, emptying, or dump- separated from a gas prior to injection
ing. into a pipeline. It does not include pe-
District Manager means the BSEE of- troleum, including crude oil or any
ficer with authority and responsibility fraction thereof, which is specifically
for a district within a BSEE Region. listed or designated as a hazardous sub-
Facility means any structure, group stance under paragraphs (A) through
of structures, equipment, or device (F) of section 101(14) of the Comprehen-
(other than a vessel) which is used for sive Environmental Response, Com-
one or more of the following purposes: pensation, and Liability Act (42 U.S.C.
Exploring for, drilling for, producing, 9601) and which is subject to the provi-
storing, handling, transferring, proc- sions of that Act. It also does not in-
essing, or transporting oil. The term clude animal fats and oils and greases
excludes deep-water ports and their as- and fish and marine mammal oils,
sociated pipelines as defined by the within the meaning of paragraph (2) of
Deepwater Port Act of 1974, but in- section 61(a) of title 13, United States
cludes other pipelines used for one or Code, and oils of vegetable origin, in-
more of these purposes. A mobile off- cluding oils from the seeds, nuts, and
299
§ 254.7 30 CFR Ch. II (7–1–18 Edition)
kernels referred to in paragraph (1)(A) lines or the taking of other actions as

of that section. may be necessary to minimize or miti-
Oil spill removal organization (OSRO) gate damage to the public health or
means an entity contracted by an welfare, including, but not limited to,
owner or operator to provide spill-re- fish, shellfish, wildlife, public and pri-
sponse equipment and/or manpower in vate property, shorelines, and beaches.
the event of an oil or hazardous sub- Spill is synonymous with ‘‘discharge’’
stance spill. for the purposes of this part.
OSRP means an Oil Spill Response Spill management team means the
Plan. trained persons identified in an OSRP
Outer Continental Shelf means all sub- who staff the organizational structure
merged lands lying seaward and out- to manage spill response.
side of the area of lands beneath navi- Spill-response coordinator means a
gable waters as defined in section 2 of trained person charged with the re-
the Submerged Lands Act (43 U.S.C. sponsibility and designated the com-
1301) and of which the subsoil and sea- mensurate authority for directing and
bed appertain to the United States and coordinating response operations.
are subject to its jurisdiction and con- Spill-response operating team means
trol. the trained persons who respond to
Owner or operator means, in the case spills through deployment and oper-
of an offshore facility, any person own- ation of oil-spill response equipment.
ing or operating such offshore facility. State waters located seaward of the
In the case of any abandoned offshore coast line means the belt of the seas
facility, it means the person who measured from the coast line and ex-
owned such facility immediately prior tending seaward a distance of 3 miles
to such abandonment. (except the coast of Texas and the Gulf
Pipeline means pipe and any associ- coast of Florida, where the State
ated equipment, appurtenance, or waters extend seaward a distance of 3
building used or intended for use in the leagues).
transportation of oil located seaward of You means the owner or the operator
the coast line, except those used for as defined in this section.
deep-water ports. Pipelines do not in-
clude vessels such as barges or shuttle [76 FR 64462, Oct. 18, 2011, as amended at 81
tankers used to transport oil from fa- FR 36152, June 6, 2016; 81 FR 46563, July 15,
cilities located seaward of the coast 2016]
line.
Qualified individual means an § 254.7 How do I submit my OSRP to
the BSEE?
English-speaking representative of an
owner or operator, located in the You must submit the number of cop-
United States, available on a 24-hour ies of your OSRP that the appropriate
basis, with full authority to obligate BSEE regional office requires. If you
funds, carry out removal actions, and prefer to use improved information
communicate with the appropriate technology such as electronic filing to
Federal officials and the persons pro- submit your plan, ask the Chief, OSPD,
viding personnel and equipment in re- for further guidance.
moval operations. (a) Send OSRPs for facilities located
Regional Response Plan means a spill- seaward of the coast line of Alaska to:
response plan required by this part Bureau of Safety and Environmental
which covers multiple facilities or Enforcement, Oil Spill Preparedness
leases of an owner or operator, includ- Division, Attention: Senior Analyst,
ing affiliates, which are located in the 3801 Centerpoint Drive, Suite #500, An-
same BSEE Region. chorage, AK 99503–5823.
Regional Supervisor means the BSEE (b) Send OSRPs for facilities in the
official with responsibility and author- Gulf of Mexico or Atlantic Ocean to:
ity for operations or other designated Bureau of Safety and Environmental
program functions within a BSEE Re- Enforcement, Oil Spill Preparedness
gion. Division, Attention: GOM Section Su-

Remove means containment and pervisor, 1201 Elmwood Park Boule-
cleanup of oil from water and shore- vard, New Orleans, LA 70123–2394.
300
(c) Send OSRPs for facilities in the Subpart B—Oil-Spill Response

Pacific Ocean (except seaward of the Plans for Outer Continental
coast line of Alaska) to: Bureau of Shelf Facilities
Safety and Environmental Enforce-
ment, Oil Spill Preparedness Division, § 254.20 Purpose.
Attention: Senior Analyst, 760 Paseo
This subpart describes the require-
Camarillo, Suite 201, Camarillo, CA
93010–6002. ments for preparing OSRPs for facili-
ties located on the OCS.
[81 FR 36152, June 6, 2016]
§ 254.8 May I appeal decisions under FR 36152, June 6, 2016]
this part?
§ 254.21 How must I format my OSRP?
See 30 CFR part 290 for instructions
(a) You must divide your OSRP for
on how to appeal any order or decision
OCS facilities into the sections speci-
that we issue under this part.
fied in paragraph (b) of this section and
§ 254.9 Authority for information col- explained in the other sections of this
lection. subpart. The OSRP must have an eas-
ily found marker identifying each sec-
tion. You may use an alternate format
Budget (OMB) has approved the infor-
if you include a cross reference table to
mation collection requirements in this
identify the location of required sec-
part under 44 U.S.C. 3501 et seq. OMB as-
tions. You may use alternate contents
signed the control number 1014–0007.
if you can demonstrate to the Chief,
The title of this information collection
OSPD that they provide for equal or
is ‘‘30 CFR part 254, Oil Spill Response
greater levels of preparedness.
Requirements for Facilities Located
(b) Your OSRP must include:
Seaward of the Coast line.’’
(1) Introduction and OSRP contents.
(b) BSEE collects this information to
ensure that the owner or operator of an (2) Emergency response action plan.
offshore facility is prepared to respond (3) Appendices:
to an oil spill. BSEE uses the informa- (i) Equipment inventory.
tion to verify compliance with the (ii) Contractual agreements.
mandates of the Oil Pollution Act of (iii) Worst case discharge scenario.
1990 (OPA). The requirement to submit (iv) Dispersant use plan.
this information is mandatory. No con- (v) In situ burning plan.
fidential or proprietary information is (vi) Training and drills.
collected. [76 FR 64462, Oct. 18, 2011, as amended at 81
(c) An agency may not conduct or FR 36152, June 6, 2016]
sponsor, and a person is not required to
respond to, a collection of information § 254.22 What information must I in-
unless it displays a currently valid clude in the ‘‘Introduction and
OMB control number. OSRP contents’’ section?
(d) Send comments regarding any as- The ‘‘Introduction and OSRP con-
pect of the collection of information tents’’ section must provide:
under this part, including suggestions (a) Identification of the facility the
for reducing the burden, to the Infor- OSRP covers, including its location
mation Collection Clearance Officer, and type;
Bureau of Safety and Environmental (b) A table of contents;
Enforcement, 45600 Woodland Road, (c) A record of changes made to the
Sterling, VA 20166. OSRP; and
[76 FR 64462, Oct. 18, 2011, as amended at 81 (d) A cross-reference table, if needed,
FR 36152, June 6, 2016] because you are using an alternate for-
mat for your OSRP.

FR 36152, June 6, 2016]
301
§ 254.23 30 CFR Ch. II (7–1–18 Edition)
§ 254.23 What information must I in- (1) Your procedures for spill notifica-
clude in the ‘‘Emergency response tion. The plan must provide for the use
action plan’’ section? of the oil spill reporting forms included
The ‘‘Emergency response action in the Area Contingency Plan or an
plan’’ section is the core of the OSRP. equivalent reporting form.
Put information in easy-to-use formats (i) Your procedures must include a
such as flow charts or tables where ap- current list which identifies the fol-
propriate. This section must include: lowing by name or position, corporate
(a) Designation, by name or position, address, and telephone number (includ-
of a trained qualified individual (QI) ing facsimile number if applicable):
who has full authority to implement (A) The qualified individual;
removal actions and ensure immediate
(B) The spill-response coordinator
notification of appropriate Federal of-
and alternate(s); and
ficials and response personnel.
(b) Designation, by name or position, (C) Other spill-response management
of a trained spill management team team members.
available on a 24-hour basis. The team (ii) You must also provide names,
must include a trained spill-response telephone numbers, and addresses for
coordinator and alternate(s) who have the following:
the responsibility and authority to di- (A) OSRO’s that the plan cites;
rect and coordinate response oper- (B) Federal, State, and local regu-
ations on your behalf. You must de- latory agencies that you must consult
scribe the team’s organizational struc- to obtain site specific environmental
ture as well as the responsibilities and information; and
authorities of each position on the spill (C) Federal, State, and local regu-
management team. latory agencies that you must notify
(c) Description of a spill-response op- when an oil spill occurs.
erating team. Team members must be
(2) Your methods to monitor and pre-
trained and available on a 24-hour basis
dict spill movement;
to deploy and operate spill-response
equipment. They must be able to re- (3) Your methods to identify and
spond within a reasonable minimum prioritize the beaches, waterfowl, other
specified time. You must include the marine and shoreline resources, and
number and types of personnel avail- areas of special economic and environ-
able from each identified labor source. mental importance;
(d) A planned location for a spill-re- (4) Your methods to protect beaches,
sponse operations center and provi- waterfowl, other marine and shoreline
sions for primary and alternate com- resources, and areas of special eco-
munications systems available for use nomic or environmental importance;
in coordinating and directing spill-re- (5) Your methods to ensure that con-
sponse operations. You must provide tainment and recovery equipment as
telephone numbers for the response op- well as the response personnel are mo-
erations center. You also must provide bilized and deployed at the spill site;
any facsimile numbers and primary (6) Your methods to ensure that de-
and secondary radio frequencies that vices for the storage of recovered oil
will be used. are sufficient to allow containment and
(e) A listing of the types and charac-
recovery operations to continue with-
teristics of the oil handled, stored, or
out interruption;
transported at the facility.
(f) Procedures for the early detection (7) Your procedures to remove oil and
of a spill. oiled debris from shallow waters and
(g) Identification of procedures you along shorelines and rehabilitating wa-
will follow in the event of a spill or a terfowl which become oiled;
substantial threat of a spill. The proce- (8) Your procedures to store, transfer,
dures should show appropriate response and dispose of recovered oil and oil-
levels for differing spill sizes including contaminated materials and to ensure
those resulting from a fire or explo- that all disposal is in accordance with
sion. These will include, as appro- Federal, State, and local requirements;
priate: and
302
(9) Your methods to implement your that a discharge potentially could af-
dispersant use plan and your in situ fect. The trajectory analysis chosen
burning plan. must reflect the maximum distance
[76 FR 64462, Oct. 18, 2011, as amended at 81 from the facility that oil could move in
FR 36152, June 6, 2016] a time period that it reasonably could
be expected to persist in the environ-
§ 254.24 What information must I in- ment.
clude in the ‘‘Equipment inventory’’ (c) A list of the resources of special
appendix? economic or environmental importance
Your ‘‘Equipment inventory appen- that potentially could be impacted in
dix’’ must include: the areas identified by your trajectory
(a) An inventory of spill-response ma- analysis. You also must state the strat-
terials and supplies, services, equip- egies that you will use for their protec-
ment, and response vessels available tion. At a minimum, this list must in-
locally and regionally. You must iden- clude those resources of special eco-
tify each supplier and provide their lo- nomic and environmental importance,
cations and telephone numbers. if any, specified in the appropriate
(b) A description of the procedures Area Contingency Plan(s).
for inspecting and maintaining spill-re- (d) A discussion of your response to
sponse equipment in accordance with your worst case discharge scenario in
§ 254.43. adverse weather conditions. This dis-
§ 254.25 What information must I in- cussion must include:
clude in the ‘‘Contractual agree- (1) A description of the response
ments’’ appendix? equipment that you will use to contain
Your ‘‘Contractual agreements’’ ap- and recover the discharge to the max-
pendix must furnish proof of any con- imum extent practicable. This descrip-
tracts or membership agreements with tion must include the types, location(s)
OSRO’s, cooperatives, spill-response and owner, quantity, and capabilities
service providers, or spill management of the equipment. You also must in-
team members who are not your em- clude the effective daily recovery ca-
ployees that you cite in the OSRP. To pacities, where applicable. You must
provide this proof, submit copies of the calculate the effective daily recovery
contracts or membership agreements capacities using the methods described
or certify that contracts or member- in § 254.44. For operations at a drilling
ship agreements are in effect. The con- or production facility, your scenario
tract or membership agreement must must show how you will cope with the
include provisions for ensuring the initial spill volume upon arrival at the
availability of the personnel and/or scene and then support operations for a
equipment on a 24-hour-per-day basis. blowout lasting 30 days.
(2) A description of the personnel,
materials, and support vessels that
FR 36152, June 6, 2016]
would be necessary to ensure that the
§ 254.26 What information must I in- identified response equipment is de-
clude in the ‘‘Worst case discharge ployed and operated promptly and ef-
scenario’’ appendix? fectively. Your description must in-
The discussion of your worst case dis- clude the location and owner of these
charge scenario must include all of the resources as well as the quantities and
following elements: types (if applicable);
(a) The volume of your worst case (3) A description of your oil storage,
discharge scenario determined using transfer, and disposal equipment. Your
the criteria in § 254.47. Provide any as- description must include the types, lo-
sumptions made and the supporting cation and owner, quantity, and capac-
calculations used to determine this ities of the equipment; and
volume. (4) An estimation of the individual
(b) An appropriate trajectory anal- times needed for:
ysis specific to the area in which the (i) Procurement of the identified con-
facility is located. The analysis must tainment, recovery, and storage equip-
identify onshore and offshore areas ment;
303
§ 254.27 30 CFR Ch. II (7–1–18 Edition)
(ii) Procurement of equipment trans- (f) An outline of the procedures you

portation vessel(s); must follow in obtaining approval for
(iii) Procurement of personnel to product use.
load and operate the equipment;
(iv) Equipment loadout (transfer of § 254.28 What information must I in-
equipment to transportation vessel(s)); clude in the ‘‘In situ burning plan’’
(v) Travel to the deployment site (in- appendix?
cluding any time required for travel Your in situ burning plan must be
from an equipment storage area); and consistent with any guidelines author-
(vi) Equipment deployment. ized by the National Contingency Plan
(e) In preparing the discussion re- and the appropriate Area Contingency
quired by paragraph (d) of this section, Plan(s). Your in situ burning plan must
you must: include:
(1) Ensure that the response equip- (a) A description of the in situ burn
ment, materials, support vessels, and equipment including its availability,
strategies listed are suitable, within location, and owner;
the limits of current technology, for (b) A discussion of your in situ burn-
the range of environmental conditions ing procedures, including provisions for
anticipated at your facility; and ignition of an oil spill;
(2) Use standardized, defined terms to (c) A discussion of environmental ef-
describe the range of environmental fects of an in situ burn;
conditions anticipated and the capa-
(d) Your guidelines for well control
bilities of response equipment. Exam-
and safety of personnel and property;
ples of acceptable terms include those
defined in American Society for Test- (e) A discussion of the circumstances
ing of Materials (ASTM) publication in which in situ burning may be appro-
F625–94, Standard Practice for Describing priate;
Environmental Conditions Relevant to (f) Your guidelines for making the
Spill Control Systems for Use on Water, decision to ignite; and
and ASTM F818–93, Standard Definitions (g) An outline of the procedures you
Relating to Spill Response Barriers. must follow to obtain approval for an
in situ burn.
§ 254.27 What information must I in-
clude in the ‘‘Dispersant use plan’’ § 254.29 What information must I in-
appendix? clude in the ‘‘Training and drills’’
Your dispersant use plan must be appendix?
consistent with the National Contin- Your ‘‘Training and drills’’ appendix
gency Plan Product Schedule and other must:
provisions of the National Contingency (a) Identify and include the dates of
Plan and the appropriate Area Contin- the training provided to members of
gency Plan(s). The plan must include: the spill-response management team
(a) An inventory and a location of and the qualified individual. The types
the dispersants and other chemical or of training given to the members of the
biological products which you might spill-response operating team also
use on the oils handled, stored, or must be described. The training re-
transported at the facility;
quirements for your spill management
(b) A summary of toxicity data for
team and your spill-response operating
these products;
team are specified in § 254.41. You must
(c) A description and a location of
designate a location where you keep
any application equipment required as
course completion certificates or at-
well as an estimate of the time to com-
tendance records for this training.
mence application after approval is ob-
tained; (b) Describe in detail your plans for
(d) A discussion of the application satisfying the exercise requirements of
procedures; § 254.42. You must designate a location
(e) A discussion of the conditions where you keep the records of these ex-
under which product use may be re- ercises.
quested; and
304
§ 254.30 When must I revise my OSRP? § 254.41 Training your response per-
sonnel.
(a) You must review your OSRP at
least every 2 years and submit all re- (a) You must ensure that the mem-
sulting modifications to the Chief, bers of your spill-response operating
OSPD. If this review does not result in team who are responsible for operating
modifications, you must inform the response equipment attend hands-on
Chief, OSPD, in writing that there are training classes at least annually. This
no changes. training must include the deployment
and operation of the response equip-
(b) You must submit revisions to
ment they will use. Those responsible
your OSRP for approval within 15 days
for supervising the team must be
whenever:
trained annually in directing the de-
(1) A change occurs which signifi- ployment and use of the response
cantly reduces your response capabili- equipment.
ties; (b) You must ensure that the spill-re-
(2) A significant change occurs in the sponse management team, including
worst case discharge scenario or in the the spill-response coordinator and al-
type of oil being handled, stored, or ternates, receives annual training. This
transported at the facility; training must include instruction on:
(3) There is a change in the name(s) (1) Locations, intended use, deploy-
or capabilities of the oil spill removal ment strategies, and the operational
organizations cited in the OSRP; or and logistical requirements of response
(4) There is a significant change to equipment;
the Area Contingency Plan(s). (2) Spill reporting procedures;
(c) The Chief, OSPD, may require (3) Oil-spill trajectory analysis and
that you resubmit your OSRP if the predicting spill movement; and
OSRP has become outdated or if nu- (4) Any other responsibilities the
merous revisions have made its use dif- spill management team may have.
ficult. (c) You must ensure that the quali-
(d) The Chief, OSPD, will periodically fied individual is sufficiently trained to
review the equipment inventories of perform his or her duties.
OSRO’s to ensure that sufficient spill (d) You must keep all training cer-
removal equipment is available to tificates and training attendance
meet the cumulative needs of the own- records at the location designated in
ers and operators who cite these orga- your OSRP for at least 2 years. They
nizations in their OSRPs. must be made available to any author-
ized BSEE representative upon request.
(e) The Chief, OSPD, may require you
to revise your OSRP if significant inad- [76 FR 64462, Oct. 18, 2011, as amended at 81
equacies are indicated by: FR 36153, June 6, 2016]
(1) Periodic reviews (described in § 254.42 Exercises for your response
paragraph (d) of this section); personnel and equipment.
(2) Information obtained during drills
(a) You must exercise your entire
or actual spill responses; or
OSRP at least once every 3 years (tri-
(3) Other relevant information the ennial exercise). You may satisfy this
Chief, OSPD, obtained. requirement by conducting separate
[81 FR 36152, June 6, 2016] exercises for individual parts of the
OSRP over the 3-year period; you do
not have to exercise your entire OSRP
Subpart C—Related Requirements at one time.
for Outer Continental Shelf Fa- (b) In satisfying the triennial exer-
cilities cise requirement, you must, at a min-
imum, conduct:
§ 254.40 Records. (1) An annual spill management team
You must make all records of serv- tabletop exercise. The exercise must
ices, personnel, and equipment pro- test the spill management team’s orga-
vided by OSRO’s or cooperatives avail- nization, communication, and decision

able to any authorized BSEE represent- making in managing a response. You
ative upon request. must not reveal the spill scenario to
305
§ 254.43 30 CFR Ch. II (7–1–18 Edition)
team members before the exercise the OSRP. Records showing that
starts. OSROs and oil spill removal coopera-
(2) An annual deployment exercise of tives have deployed each type of equip-
response equipment identified in your ment also must be maintained for the
OSRP that is staged at onshore loca- 3-year cycle.
tions. You must deploy and operate (f) You must inform the Chief, OSPD
each type of equipment in each tri- of the date of any exercise required by
ennial period. However, it is not nec- paragraph (b)(1), (2), or (4) of this sec-
essary to deploy and operate each indi- tion at least 30 days before the exer-
vidual piece of equipment. cise. This will allow BSEE personnel
(3) An annual notification exercise the opportunity to witness any exer-
for each facility that is manned on a cises.
24- hour basis. The exercise must test (g) The Regional Supervisor periodi-
the ability of facility personnel to cally will initiate unannounced drills
communicate pertinent information in to test the spill response preparedness
a timely manner to the qualified indi- of owners and operators.
vidual. (h) The Chief, OSPD may require
(4) A semiannual deployment exer- changes in the frequency or location of
cise of any response equipment which the required exercises, equipment to be
the BSEE Regional Supervisor requires deployed and operated, or deployment
an owner or operator to maintain at
procedures or strategies. The Chief,
the facility or on dedicated vessels.
OSPD may evaluate the results of the
You must deploy and operate each type
exercises and advise the owner or oper-
of this equipment at least once each
ator of any needed changes in response
year. Each type need not be deployed
equipment, procedures, or strategies.
and operated at each exercise.
(c) During your exercises, you must (i) Compliance with the National
simulate conditions in the area of oper- Preparedness for Response Exercise
ations, including seasonal weather Program (PREP) Guidelines will sat-
variations, to the extent practicable. isfy the exercise requirements of this
The exercises must cover a range of section. Copies of the PREP document
scenarios over the 3-year exercise pe- may be obtained from the Chief, OSPD.
riod, simulating responses to large con- [76 FR 64462, Oct. 18, 2011, as amended at 81
tinuous spills, spills of short duration FR 36153, June 6, 2016]
and limited volume, and your worst
case discharge scenario. § 254.43 Maintenance and periodic in-
(d) BSEE will recognize and give spection of response equipment.
credit for any documented exercise (a) You must ensure that the re-
conducted that satisfies some part of sponse equipment listed in your OSRP
the required triennial exercise. You is inspected at least monthly and is
will receive this credit whether the maintained, as necessary, to ensure op-
owner or operator, an OSRO, or a Gov- timal performance.
ernment regulatory agency initiates (b) You must ensure that records of
the exercise. BSEE will give you credit the inspections and the maintenance
for an actual spill response if you activities are kept for at least 2 years
evaluate the response and generate a and are made available to any author-
proper record. Exercise documentation ized BSEE representative upon request.
should include the following informa-
tion: [76 FR 64462, Oct. 18, 2011, as amended at 81
(1) Type of exercise; FR 36153, June 6, 2016]
(2) Date and time of the exercise;
(3) Description of the exercise; § 254.44 Calculating response equip-
(4) Objectives met; and ment effective daily recovery capac-
ities.
(5) Lessons learned.
(e) All records of spill-response exer- (a) You are required by § 254.26(d)(1)
cises must be maintained for the com- to calculate the effective daily recov-
plete 3-year exercise cycle. Records ery capacity of the response equipment
should be maintained at the facility or identified in your OSRP that you
at a corporate location designated in would use to contain and recover your
306
worst case discharge. You must cal- § 254.46 Whom do I notify if an oil spill
culate the effective daily recovery ca- occurs?
pacity of the equipment by multiplying (a) You must immediately notify the
the manufacturer’s rated throughput National Response Center (1–800–424–
capacity over a 24-hour period by 20 8802) if you observe:
percent. This 20 percent efficiency fac- (1) An oil spill from your facility;
tor takes into account the limitations (2) An oil spill from another offshore
of the recovery operations due to avail- facility; or
able daylight, sea state, temperature,
(3) An offshore spill of unknown ori-
viscosity, and emulsification of the oil
gin.
being recovered. You must use this cal-
(b) In the event of a spill of 1 barrel
culated rate to determine if you have
or more from your facility, you must
sufficient recovery capacity to respond
orally notify the Regional Supervisor
to your worst case discharge scenario.
without delay. You also must report
(b) If you want to use a different effi-
spills from your facility of unknown
ciency factor for specific oil recovery
size but thought to be 1 barrel or more.
devices, you must submit evidence to
(1) If a spill from your facility not
substantiate that efficiency factor.
originally reported to the Regional Su-
Adequate evidence includes verified
pervisor is subsequently found to be 1
performance data measured during ac-
barrel or more, you must then report it
tual spills or test data gathered accord-
without delay.
ing to the provisions of § 254.45(b) and
(2) You must file a written follow up
(c).
report for any spill from your facility
[76 FR 64462, Oct. 18, 2011, as amended at 81 of 1 barrel or more. The Chief, OSPD
FR 36153, June 6, 2016] must receive this confirmation within
15 days after the spillage has been
§ 254.45 Verifying the capabilities of stopped. All reports must include the
your response equipment.
cause, location, volume, and remedial
(a) The Regional Supervisor may re- action taken. Reports of spills of more
quire performance testing of any spill- than 50 barrels must include informa-
response equipment listed in your tion on the sea state, meteorological
OSRP to verify its capabilities if the conditions, and the size and appearance
equipment: of the slick. The Regional Supervisor
(1) Has been modified; may require additional information if
(2) Has been damaged and repaired; or it is determined that an analysis of the
(3) Has a claimed effective daily re- response is necessary.
covery capacity that is inconsistent (c) If you observe a spill resulting
with data otherwise available to BSEE. from operations at another offshore fa-
(b) You must conduct any required cility, you must immediately notify
performance testing of booms in ac- the responsible party and the Regional
cordance with BSEE-approved test cri- Supervisor.
teria. You may use the document ‘‘Test
Protocol for the Evaluation of Oil-Spill FR 36153, June 6, 2016]
Containment Booms,’’ available from
BSEE, for guidance. Performance test- § 254.47 Determining the volume of oil
ing of skimmers also must be con- of your worst case discharge sce-
ducted in accordance with BSEE ap- nario.
proved test criteria. You may use the You must calculate the volume of oil
document ‘‘Suggested Test Protocol for of your worst case discharge scenario
the Evaluation of Oil Spill Skimmers as follows:
for the OCS,’’ available from BSEE, for (a) For an oil production platform fa-
guidance. cility, the size of your worst case dis-
(c) You are responsible for any re- charge scenario is the sum of the fol-
quired testing of equipment perform- lowing:
ance and for the accuracy of the infor- (1) The maximum capacity of all oil
mation submitted. storage tanks and flow lines on the fa-

[76 FR 64462, Oct. 18, 2011, as amended at 81 cility. Flow line volume may be esti-
FR 36153, June 6, 2016] mated; and
307
§ 254.50 30 CFR Ch. II (7–1–18 Edition)
(2) The volume of oil calculated to this section, contact the Chief, OSPD
leak from a break in any pipelines con- for instructions on the calculation of
nected to the facility considering shut- the volume of your worst case dis-
down time, the effect of hydrostatic charge scenario.
pressure, gravity, frictional wall forces
and other factors; and
FR 36153, June 6, 2016]
(3) The daily production volume from
an uncontrolled blowout of the highest
capacity well associated with the facil- Subpart D—Oil-Spill Response Re-
ity. In determining the daily discharge quirements for Facilities Lo-
rate, you must consider reservoir char- cated in State Waters Sea-
acteristics, casing/production tubing ward of the Coast Line
sizes, and historical production and
reservoir pressure data. Your scenario § 254.50 Spill response plans for facili-
must discuss how to respond to this ties located in State waters seaward
well flowing for 30 days as required by of the coast line.
§ 254.26(d)(1). Owners or operators of facilities lo-
(b) For exploratory or development cated in State waters seaward of the
drilling operations, the size of your coast line must submit a spill-response
worst case discharge scenario is the plan to BSEE for approval. You may
daily volume possible from an uncon- choose one of three methods to comply
trolled blowout. In determining the with this requirement. The three meth-
daily discharge rate, you must consider ods are described in §§ 254.51, 254.52, and
any known reservoir characteristics. If 254.53.
reservoir characteristics are unknown,
you must consider the characteristics § 254.51 Modifying an existing OCS
of any analog reservoirs from the area OSRP.
and give an explanation for the selec-
tion of the reservoir(s) used. Your sce- You may modify an existing response
nario must discuss how to respond to plan covering a lease or facility on the
this well flowing for 30 days as required OCS to include a lease or facility in
by § 254.26(d)(1). State waters located seaward of the
(c) For a pipeline facility, the size of coast line. Since this OSRP would
your worst case discharge scenario is cover more than one lease or facility,
the volume possible from a pipeline it would be considered a Regional Re-
break. You must calculate this volume sponse Plan. You should refer to § 254.3
as follows: and contact the appropriate regional
(1) Add the pipeline system leak de- BSEE office if you have any questions
tection time to the shutdown response on how to prepare this Regional Re-
time. sponse Plan.
(2) Multiply the time calculated in [76 FR 64462, Oct. 18, 2011, as amended at 81
paragraph (c)(1) of this section by the FR 36153, June 6, 2016]
highest measured oil flow rate over the
preceding 12-month period. For new § 254.52 Following the format for an
pipelines, you should use the predicted OCS OSRP.
oil flow rate in the calculation. You may develop a response OSRP
(3) Add to the volume calculated in following the requirements for plans
paragraph (c)(2) of this section the for OCS facilities found in subpart B of
total volume of oil that would leak this part.
from the pipeline after it is shut in.
Calculate this volume by taking into [76 FR 64462, Oct. 18, 2011, as amended at 81
account the effects of hydrostatic pres- FR 36153, June 6, 2016]
sure, gravity, frictional wall forces,
length of pipeline segment, tie-ins with § 254.53 Submitting an OSRP devel-
oped under State requirements.
other pipelines, and other factors.
(d) If your facility which stores, han- (a) You may submit a response plan
dles, transfers, processes, or transports to BSEE for approval that you devel-
oil does not fall into the categories oped in accordance with the laws or
listed in paragraph (a), (b), or (c) of regulations of the appropriate State.
308
The OSRP must contain all the ele- § 254.54 Spill prevention for facilities
ments the State and OPA require and located in State waters seaward of
must: the coast line.
(1) Be consistent with the require- In addition to your OSRP, you must
ments of the National Contingency submit to the Regional Supervisor a
Plan and appropriate Area Contingency description of the steps you are taking
Plan(s). to prevent spills of oil or mitigate a
(2) Identify a qualified individual and substantial threat of such a discharge.
require immediate communication be- You must identify all State or Federal
tween that person and appropriate Fed- safety or pollution prevention require-
eral officials and response personnel if ments that apply to the prevention of
there is a spill. oil spills from your facility, and dem-
(3) Identify any private personnel and onstrate your compliance with these
equipment necessary to remove, to the requirements. You also should include
maximum extent practicable, a worst a description of industry safety and
case discharge as defined in § 254.47. pollution prevention standards your fa-
cility meets. The Chief, OSPD may pre-
The plan must provide proof of con-
scribe additional equipment or proce-
tractual services or other evidence of a
dures for spill prevention if it is deter-
contractual agreement with any
mined that your efforts to prevent
OSRO’s or spill management team spills do not reflect good industry prac-
members who are not employees of the tices.
owner or operator.
(4) Describe the training, equipment [76 FR 64462, Oct. 18, 2011, as amended at 81
testing, periodic unannounced drills, FR 36153, June 6, 2016]
and response actions of personnel at
§ 254.55 Spill response plans for facili-
the facility. These must ensure both ties located in Alaska State waters
the safety of the facility and the miti- seaward of the coast line in the
gation or prevention of a discharge or Chukchi and Beaufort Seas.
the substantial threat of a discharge.
Response plans for facilities con-
(5) Describe the procedures you will ducting exploratory drilling operations
use to periodically update and resub- from a MODU seaward of the coast line
mit the plan for approval of each sig- in Alaska State waters in the Chukchi
nificant change. and Beaufort Seas must follow the re-
(b) Your plan developed under State quirements contained within subpart E
requirements also must include the fol- of this part, in addition to the other re-
lowing information: quirements of this subpart. Such re-
(1) A list of the facilities and leases sponse plans must address how the
the plan covers and a map showing source control procedures selected to
their location; comply with State law will be inte-
(2) A list of the types of oil handled, grated into the planning, training, and
stored, or transported at the facility; exercise requirements of §§ 254.70(a),
(3) Name and address of the State 254.90(a), and 254.90(c), in the event that
agency to whom the plan was sub- the proposed operations do not incor-
mitted; porate the capping stack, cap and flow
(4) Date you submitted the plan to system, containment dome, and/or
the State; other similar subsea and surface de-
vices and equipment and vessels ref-
(5) If the plan received formal ap-
erenced in those sections.
proval, the name of the approving orga-
nization, the date of approval, and a [81 FR 46563, July 15, 2016]
copy of the State agency’s approval
letter if one was issued; and Subpart E—Oil-Spill Response Re-
(6) Identification of any regulations quirements for Facilities Lo-
or standards used in preparing the cated on the Arctic OCS
plan.
[76 FR 64462, Oct. 18, 2011, as amended at 81 SOURCE: 81 FR 46564, July 15, 2016, unless
FR 36153, June 6, 2016] otherwise noted.
309
§ 254.65 30 CFR Ch. II (7–1–18 Edition)
§ 254.65 Purpose. (a) A description of your ice interven-

tion practices and how they will im-
This subpart describes the additional
prove the effectiveness of the oil spill
requirements for preparing OSRPs and
response options and strategies that
maintaining oil spill preparedness for
are listed in your OSRP in the presence
facilities conducting exploratory drill-
of sea ice. When developing the ice
ing operations from a mobile offshore
intervention practices for your OSRP,
drilling unit (MODU) on the Arctic
you must consider, at a minimum, the
OCS.
use of specialized tactics, modified re-
§§ 254.66–254.69 [Reserved] sponse equipment, ice management as-
sist vessels, and technologies for the
§ 254.70 What are the additional re- identification, tracking, containment
quirements for facilities conducting and removal of oil in ice.
exploratory drilling from a MODU (b) On areas of the Arctic OCS where
on the Arctic OCS? a planned shore-based response would
In addition to meeting the applicable not satisfy § 254.1(a):
requirements of this part, your OSRP (1) A list of all resources required to
must: ensure an effective offshore-based re-
(a) Describe how the relevant per- sponse capable of operating in adverse
sonnel, equipment, materials, and sup- weather conditions. This list must in-
port vessels associated with the cap- clude a description of how you will en-
ping stack, cap and flow system, con- sure the shortest possible transit
tainment dome, and other similar times, including but not limited to es-
subsea and surface devices and equip- tablishing an offshore resource man-
ment and vessels will be integrated agement capability (e.g., sea-based
into oil spill response incident action staging, maintenance, and berthing lo-
planning; gistics); and
(b) Describe how you will address (2) A list and description of logistics
human factors, such as cold stress and resupply chains, including waste man-
cold related conditions, associated with agement, that effectively factor in the
oil spill response activities in adverse remote and limited infrastructure that
weather conditions and their impacts exists in the Arctic and ensure you can
on decision-making and health and adequately sustain all oil spill response
safety; and activities for the duration of the re-
sponse. The components of the logistics
(c) Undergo plan-holder review prior
supply chain include, but are not lim-
to handling, storing, or transporting
ited to:
oil in connection with seasonal explor-
(i) Personnel and equipment trans-
atory drilling activities, and all result-
port services;
ing modifications must be submitted to
(ii) Airfields and types of aircraft
the Regional Supervisor. If this review
that can be supported;
does not result in modifications, you
(iii) Capabilities to mobilize supplies
must inform the Regional Supervisor
(e.g., response equipment, fuel, food,
in writing that there are no changes.
fresh water) and personnel to the re-
The requirements of this paragraph (c)
sponse sites;
are in lieu of the requirements in
(iv) Onshore staging areas, storage
§ 254.30(a).
areas that may be used en-route to
§§ 254.71–254.79 [Reserved] staging areas, and camp facilities to
support response personnel conducting
§ 254.80 What additional information offshore, nearshore and shoreline re-
must I include in the ‘‘Emergency sponse; and
response action plan’’ section for fa- (v) Management of recovered fluid
cilities conducting exploratory and contaminated debris and response
drilling from a MODU on the Arctic materials (e.g., oiled sorbents), as well
OCS? as waste streams generated at offshore
In addition to the requirements in and on-shore support facilities (e.g.,
§ 254.23, you must include the following sewage, food, and medical).
information in the emergency response (c) A description of the system you
action plan section of your OSRP: will use to maintain real-time location
310
tracking for all response resources PART 256—LEASING OF SULPHUR

while operating, transiting, or staging/ OR OIL AND GAS IN THE OUTER
maintaining such resources during a CONTINENTAL SHELF
spill response.
Subpart A—Outer Continental Shelf Oil,
§§ 254.81–254.89 [Reserved]
Gas, and Sulphur Management, General
§ 254.90 What are the additional re- Sec.
quirements for exercises of your re- 256.1 Purpose.
sponse personnel and equipment 256.7 Cross references.
for facilities conducting exploratory 256.8–256.12 [Reserved]
drilling from a MODU on the Arctic
OCS? Subpart B—Assignments, Transfers, and
In addition to the requirements in Extensions
§ 254.42, the following requirements 256.70 Extension of lease by drilling or well
apply to exercises for your response reworking operations.
personnel and equipment for facilities 256.71 Directional drilling.
conducting exploratory drilling from a 256.72 Compensatory payments as produc-
MODU on the Arctic OCS: tion.
256.73 Effect of suspensions on lease term.
(a) You must incorporate the per-
sonnel, materials, and equipment iden- Subpart C—Termination of Leases
tified in § 254.70(a), the safe working
practices identified in § 254.70(b), the 256.77 Cancellation of leases.
ice intervention practices described in
Subpart D—Section 6 Leases
§ 254.80(a), the offshore-based response
requirements in § 254.80(b), and the re- 256.79 Effect of regulations on lease.
source tracking requirements in AUTHORITY: 31 U.S.C. 9701, 42 U.S.C. 6213, 43
§ 254.80(c) into your spill-response U.S.C. 1334, Pub. L. 109–432.
training and exercise activities.
SOURCE: 76 FR 64462, Oct. 18, 2011, unless
(b) For each season in which you plan otherwise noted.
to conduct exploratory drilling oper-
ations from a MODU on the Arctic
OCS, you must notify the Regional Su-
Subpart A—Outer Continental
pervisor 60 days prior to handling, stor- Shelf Oil, Gas, and Sulphur
ing, or transporting oil. Management, General
(c) After the Regional Supervisor re- § 256.1 Purpose.
ceives notice pursuant to § 254.90(b), the
Regional Supervisor may direct you to The purpose of the regulations in 30
deploy and operate your spill response CFR part 256 is to establish the proce-
dures under which the Secretary of the
equipment and/or your capping stack,
Interior (Secretary) will exercise the
cap and flow system, and containment
authority to administer a leasing pro-
dome, and other similar subsea and
gram for oil, gas and sulphur. The pro-
surface devices and equipment and ves- cedures under which the Secretary will
sels, as part of announced or unan- exercise the authority to administer a
nounced exercises or compliance in- program to grant rights-of-way, are ad-
spections. For the purposes of this sec- dressed in part 250, subpart J.
tion, spill response equipment does not
include the use of blowout preventers, § 256.7 Cross references.
diverters, heavy weight mud to kill the (a) For Bureau of Safety and Envi-
well, relief wells, or other similar con- ronmental Enforcement (BSEE) regula-
ventional well control options. tions governing exploration, develop-
ment and production on leases, see 30
CFR parts 250 and 270.
(b) For BSEE regulations governing
the appeal of an order or decision

issued under the regulations in this
part, see 30 CFR part 290.
311
§ 256.70 30 CFR Ch. II (7–1–18 Edition)
(c) For multiple use conflicts, see the ered to have commenced on the leased
Environmental Protection Agency list- area when drilling is commenced on
ing of ocean dumping sites—40 CFR the adjacent or adjoining land for the
part 228. purpose of directional drilling under
(d) For related National Oceanic and the leased area through any directional
Atmospheric Administration programs well surfaced on adjacent or adjoining
see: land. Production, drilling or reworking
(1) Marine sanctuary regulations, 15 of any such directional well shall be
CFR part 922; considered production or drilling or re-
(2) Fishermen’s Contingency Fund, 50 working operations on the leased area
CFR part 296; for all purposes of the lease.
(3) Coastal Energy Impact Program,
15 CFR part 931; § 256.72 Compensatory payments as
production.
(e) For Coast Guard regulations on
the oil spill liability of vessels and op- If an oil and gas lessee makes com-
erators, see 33 CFR parts 132, 135, and pensatory payments and if the lease is
136. not being maintained in force by other
(f) For Coast Guard regulations on production of oil or gas in paying quan-
port access routes, see 33 CFR part 164. tities or by other approved drilling or
(g) For compliance with the National reworking operations, such payments
Environmental Policy Act, see 40 CFR shall be considered as the equivalent of
parts 1500 through 1508. production in paying quantities for all
(h) For Department of Transpor- purposes of the lease.
tation regulations on offshore pipeline § 256.73 Effect of suspensions on lease
facilities, see 49 CFR part 195. term.
(i) For Department of Defense regula-
tions on military activities on offshore (a) A suspension may extend the
areas, see 32 CFR part 252. term of a lease (see 30 CFR 250.171) with
(j) For Bureau of Ocean Energy Man- the extension being the length of time
agement (BOEM) regulations, see 30 the suspension is in effect except as
CFR chapter V. provided in paragraph (b) of this sec-
tion.
[76 FR 64462, Oct. 18, 2011, as amended at 81 (b) A Directed Suspension does not
FR 36153, June 6, 2016] extend the lease term when the Re-
gional Supervisor directs a suspension
Subpart B—Assignments, Transfers, because of:
and Extensions (1) Gross negligence; or
(2) A willful violation of a provision
SOURCE: 76 FR 64462, Oct. 18, 2011, Redesig- of the lease or governing regulations.
nated at 81 FR 36153, June 6, 2016. (c) BSEE may issue suspensions for a
period of up to 5 years per suspension.
§ 256.70 Extension of lease by drilling The Regional Supervisor will set the
or well reworking operations. length of the suspension based on the
The term of a lease shall be extended conditions of the individual case in-
beyond the primary term so long as volved. BSEE may grant consecutive
drilling or well reworking operations suspensions. For more information on
are approved by the Secretary accord- suspension of operations or production
ing to the conditions set forth in 30 refer to the section under the heading
CFR 250.180. ‘‘Suspensions’’ in 30 CFR part 250, sub-
part A.
§ 256.71 Directional drilling.
In accordance with a BOEM-approved Subpart C—Termination of Leases
exploration plan or development and
production plan, a lease may be main- SOURCE: 76 FR 64462, Oct. 18, 2011, Redesig-
tained in force by directional wells nated at 81 FR 36153, June 6, 2016.
drilled under the leased area from sur-
face locations on adjacent or adjoining § 256.77 Cancellation of leases.

land not covered by the lease. In such (a) Any nonproducing lease issued
circumstances, drilling shall be consid- under the act may be cancelled by the
312
authorized officer whenever the lessee Act) shall continue in effect, and, in
fails to comply with any provision of the event of any conflict or inconsist-
the act or lease or applicable regula- ency, shall take precedence over these
tions, if such failure to comply con- regulations.
tinues for 30 days after mailing of no- (b) A lease maintained under section
tice by registered or certified letter to 6(a) of the Act shall also be subject to
the lease owner at the owner’s record all operating and conservation regula-
post office address. Any such cancellations applicable to the OCS. In addi-
tion is subject to judicial review as tion, the regulations relating to geo-
provided in section 23(b) of the Act. physical and geological exploratory op-
(b) Producing leases issued under the erations and to pipeline rights-of-way
Act may be cancelled by the Secretary are applicable, to the extent that those
whenever the lessee fails to comply regulations are not contrary to or in-
with any provision of the Act, applica- consistent with the lease provisions re-
ble regulations or the lease only after lating to area, the minerals, rentals,
judicial proceedings as prescribed by royalties and term. The lessee shall
section 5(d) of the Act. comply with any provision of the lease
(c) Any lease issued under the Act, as validated, the subject matter of
whether producing or not, shall be can- which is not covered in the regulations
celed by the authorized officer upon in this part.
proof that it was obtained by fraud or
misrepresentation, and after notice and PARTS 259–260 [RESERVED]
opportunity to be heard has been af-
forded to the lessee.
(d) Pursuant to section 5(a) of the
PART 270—NONDISCRIMINATION
Act, the Secretary may cancel a lease IN THE OUTER CONTINENTAL SHELF
when:
Sec.
(1) Continued activity pursuant to
270.1 Purpose.
such lease would probably cause seri- 270.2 Application of this part.
ous harm or damage to life, property, 270.3 Definitions.
any mineral, National security or de- 270.4 Discrimination prohibited.
fense, or to the marine, coastal or 270.5 Complaint.
human environment; 270.6 Process.
(2) The threat of harm or damage will 270.7 Remedies.
not disappear or decrease to an accept- AUTHORITY: 43 U.S.C. 1863.
able extent within a reasonable period SOURCE: 76 FR 64462, Oct. 18, 2011, unless
of time; and otherwise noted.
(3) The advantages of cancellation
outweigh the advantages of continuing § 270.1 Purpose.
such lease or permit in force. Proce- The purpose of this part is to imple-
dures and conditions contained in ment the provisions of section 604 of
§ 550.182 shall apply as appropriate. the OCSLA of 1978 which provides that
‘‘no person shall, on the grounds of
Subpart D—Section 6 Leases race, creed, color, national origin, or
sex, be excluded from receiving or par-
SOURCE: 76 FR 64462, Oct. 18, 2011, Redesig- ticipating in any activity, sale, or em-
nated at 81 FR 36153, June 6, 2016. ployment, conducted pursuant to the
provisions of * * * the Outer Conti-
§ 256.79 Effect of regulations on lease. nental Shelf Lands Act.’’
(a) All regulations in this part, inso-
far as they are applicable, shall super- § 270.2 Application of this part.
sede the provisions of any lease which This part applies to any contract or
is maintained under section 6(a) of the subcontract entered into by a lessee or
Act. However, the provisions of a lease by a contractor or subcontractor of a
relating to area, minerals, rentals, roy- lessee after the effective date of these
alties (subject to sections 6(a) (8) and regulations to provide goods, services,
(9) of the Act), and term (subject to facilities, or property in an amount of

section 6(a)(10) of the Act and, as to $10,000 or more in connection with any
sulfur, subject to section 6(b)(2) of the activity related to the exploration for
313
§ 270.3 30 CFR Ch. II (7–1–18 Edition)
or development and production of oil, contract which is the basis of the com-
gas, or other minerals or materials in plaint.
the OCS under the Act. (b) The complaint referred to in para-
graph (a) of this section shall be ac-
§ 270.3 Definitions. companied by such evidence as may be
As used in this part, the following available to a person and which is rel-
terms shall have the following mean- evant to the complaint including affi-
ings: davits and other documents.
Contract means any business agree- (c) Whenever any person files a com-
ment or arrangement (in which the plaint under this part, the Regional Di-
parties do not stand in the relationship rector with whom such complaint is
of employer and employee) between a filed shall give written notice of such
lessee and any person which creates an filing to all persons cited in the com-
obligation to provide goods, services, plaint no later than 10 days after re-
facilities, or property. ceipt of such complaint. Such notice
Lessee means the party authorized by shall include a statement describing
a lease, grant of right-of-way, or an ap- the alleged incident of discrimination,
proved assignment thereof to explore, including the date and the names of
develop, produce, or transport oil, gas, persons involved in it.
or other minerals or materials in the
OCS pursuant to the Act and this part. § 270.6 Process.
Person means a person or company,
including but not limited to, a corpora- Whenever a Regional Director deter-
tion, partnership, association, joint mines on the basis of any information,
stock venture, trust, mutual fund, or including that which may be obtained
any receiver, trustee in bankruptcy, or under § 270.5 of this part, that a viola-
other official acting in a similar capac- tion of or failure to comply with any
ity for such company. provision of this subpart probably oc-
Subcontract means any business curred, the Regional director shall un-
agreement or arrangement (in which dertake to afford the complainant and
the parties do not stand in the rela- the person(s) alleged to have violated
tionship of employer and employee) be- the provisions of this part an oppor-
tween a lessee’s contractor and any tunity to engage in informal consulta-
person other than a lessee that is in tions, meetings, or any other form of
any way related to the performance of communications for the purpose of re-
any one or more contracts. solving the complaint. In the event
such communications or consultations
§ 270.4 Discrimination prohibited. result in a mutually satisfactory reso-
No contract or subcontract to which lution of the complaint, the complain-
this part applies shall be denied to or ant and all persons cited in the com-
withheld from any person on the plaint shall notify the Regional Direc-
grounds of race, creed, color, national tor in writing of their agreement to
origin, or sex. such resolution. If either the complain-
ant or the person(s) alleged to have
§ 270.5 Complaint. wrongfully discriminated fail to pro-
(a) Whenever any person believes vide such written notice within a rea-
that he or she has been denied a con- sonable period of time, the Regional
tract or subcontract to which this part Director must proceed in accordance
applies on the grounds of race, creed, with the provisions of 30 CFR 250, sub-
color, national origin, or sex, such per- part N.
son may complain of such denial or
withholding to the Regional Director § 270.7 Remedies.
of the OCS Region in which such action In addition to the penalties available
is alleged to have occurred. Any com- under 30 CFR part 250, subpart N, the
plaint filed under this part must be Director may invoke any other rem-
submitted in writing to the appropriate edies available to him or her under the
Regional Director not later than 180 Act or regulations for the lessee’s fail-
days after the date of the alleged un- ure to comply with provisions of the
lawful denial of a contract or sub- Act, regulations, or lease.
314
PART 280—PROSPECTING FOR tion in writing and deliver all written

MINERALS OTHER THAN OIL, notifications by courier or certified/
GAS, AND SULPHUR ON THE registered mail. You must stop all ac-
OUTER CONTINENTAL SHELF tivities under a permit as soon as you
receive an oral or written notification.
Subparts A–B [Reserved] [76 FR 64462, Oct. 18, 2011, as amended at 81
FR 36153, June 6, 2016]
Subpart C—Obligations Under This Part
INTERRUPTED ACTIVITIES § 280.26 When may I resume activities?
Sec. The Regional Director will advise
280.20–280.24 [Reserved] you when you may start your permit
280.25 When may BSEE require me to stop activities again.
activities under this part?
280.26 When may I resume activities? § 280.27 When may BSEE cancel my
280.27 When may BSEE cancel my permit? permit?
280.28 May I relinquish my permit?
The Regional Director may cancel a
Subparts D–E [Reserved] permit at any time.
(a) If we cancel your permit, the Re-
AUTHORITY: 43 U.S.C. 1334. gional Director will advise you by cer-
SOURCE: 76 FR 64462, Oct. 18, 2011, unless tified or registered mail 30 days before
otherwise noted. the cancellation date and will state the
reason.
Subparts A–B [Reserved] (b) After we cancel your permit, you
are still responsible for proper aban-
Subpart C—Obligations Under This donment of any drill site according to
Part the requirements of 30 CFR 251.7(b)(8).
You must comply with all other obliga-
INTERRUPTED ACTIVITIES tions specified in this part or in the
§§ 280.20–280.24 [Reserved] permit.
§ 280.25 When may BSEE require me to § 280.28 May I relinquish my permit?

stop activities under this part? (a) You may relinquish your permit
(a) We may temporarily stop at any time by advising the Bureau of
prospecting or scientific research ac- Ocean Energy Management Regional
tivities under a permit when the Re- Director by certified or registered mail
gional Director determines that: 30 days in advance.
(1) Activities pose a threat of serious, (b) After you relinquish your permit,
irreparable, or immediate harm. This you are still responsible for proper
includes damage to life (including fish
abandonment of any drill sites accord-
and other aquatic life), property, and
ing to the requirements of 30 CFR
any minerals (in areas leased or not
leased), to the marine, coastal, or 251.7(b)(8). You must also comply with
human environment, or to an archae- all other obligations specified in this
ological resource; part or in the permit.
(2) You failed to comply with any ap- [76 FR 64462, Oct. 18, 2011, as amended at 81
plicable law, regulation, order or provi- FR 36153, June 6, 2016]
sion of the permit. This would include
the required submission of reports, well
records or logs, and G&G data and in-
Subparts D–E [Reserved]
formation within the time specified; or
(3) Stopping the activities is in the PART 281 [RESERVED]
interest of National security or de-
fense.
(b) The Regional Director will advise
you either orally or in writing of the

procedures to temporarily stop activi-
ties. We will confirm an oral notifica-
315
PART 282—OPERATIONS IN THE and Budget under 44 U.S.C. 3507 and as-
OUTER CONTINENTAL SHELF FOR signed clearance number 1014–0021. The
MINERALS OTHER THAN OIL, information is being collected to in-
GAS, AND SULPHUR form the Bureau of Safety and Envi-
ronmental Enforcement (BSEE) of gen-
Subpart A—General eral mining operations in the Outer
Continental Shelf (OCS). The informa-
Sec. tion will be used to ensure that oper-
282.0 Authority for information collection. ations are conducted in a safe and envi-
282.1 Purpose and authority.
282.2 Scope. ronmentally responsible manner in
282.3 Definitions. compliance with governing laws and
282.4 [Reserved] regulations. The requirement to re-
282.5 Disclosure of data and information to spond is mandatory.
the public. (b) Send comments regarding any as-
282.6 Disclosure of data and information to
an adjacent State. pect of the collection of information
282.7 Jurisdictional controversies. under this part, including suggestions
for reducing the burden, to: Informa-
Subpart B—Jurisdiction and Responsibilities tion Collection Clearance Officer, Bu-
of Director reau of Safety and Environmental En-
282.10 Jurisdiction and responsibilities of forcement, 45600 Woodland Road, Ster-
Director. ling, VA 20166.
282.11 Director’s authority.
282.12 Director’s responsibilities. [76 FR 64462, Oct. 18, 2011, as amended at 81
282.13 Suspension of production or other op- FR 36153, June 6, 2016]
erations.
282.14 Noncompliance, remedies, and pen- § 282.1 Purpose and authority.
alties. (a) The Act authorizes the Secretary
282.15 [Reserved]
to prescribe such rules and regulations
Subpart C—Obligations and as may be necessary to carry out the
Responsibilities of Lessees provisions of the Act (43 U.S.C. 1334).
The Secretary is authorized to pre-
282.20 [Reserved] scribe and amend regulations that the
282.21 Plans, general.
282.22–282.26 [Reserved] Secretary determines to be necessary
282.27 Conduct of operations. and proper in order to provide for the
282.28 Environmental protection measures. prevention of waste, conservation of
282.29–282.30 [Reserved] the natural resources of the OCS, and
282.31 Suspension of production or other op- the protection of correlative rights
erations.
therein. In the enforcement of safety,
Subpart D—Payments environmental, and conservation laws
and regulations, the Secretary is au-
282.40 [Reserved] thorized to cooperate with adjacent
282.41 Method of royalty calculation States and other Departments and
282.42 [Reserved]
Agencies of the Federal Government.
Subpart E—Appeals (b) Subject to the supervisory au-
thority of the Secretary, and unless
282.50 Appeals. otherwise specified, the regulations in
AUTHORITY: 43 U.S.C. 1334. this part shall be administered by the
SOURCE: 76 FR 64462, Oct. 18, 2011, unless Director of BSEE.
otherwise noted.
§ 282.2 Scope.
Subpart A—General The rules and regulations in this part
apply as of their effective date to all
§ 282.0 Authority for information col- operations conducted under a mineral
lection. lease for OCS minerals other than oil,
(a) The information collection re- gas, or sulphur issued under the provi-
quirements in this part have been ap- sions of section 8(k) of the Act.
proved by the Office of Management
316
§ 282.3 Definitions. Geological sample means a collected

When used in this part, the following portion of the seabed, the subseabed, or
terms shall have the following mean- the overlying waters (when obtained
ing: for geochemical analysis) acquired
Act means the OCS Lands Act, as while conducting postlease mining ac-
amended (43 U.S.C. 1331 et seq.). tivities.
Adjacent State means with respect to Governor means the Governor of a
any activity proposed, conducted, or State or the person or entity des-
approved under this part, any coastal ignated by, or pursuant to, State law
State: to exercise the power granted to a Gov-
(1) That is, or is proposed to be, re- ernor.
ceiving for processing, refining, or Information means G&G data that
transshipment OCS mineral resources have been analyzed, processed, or inter-
commercially recovered from the sea- preted.
bed; Lease means one of the following,
(2) That is used, or is scheduled to be whichever is required by the context:
used, as a support base for prospecting, Any form of authorization which is
exploration, testing, or mining activi- issued under section 8 or maintained
ties; or under section 6 of the Acts and which
(3) In which there is a reasonable authorizes exploration for, and devel-
probability of significant effect on land opment and production of, specific
or water uses from such activity. minerals; or the area covered by that
Contingency Plan means a plan for ac- authorization.
tion to be taken in emergency situa- Lessee means the person authorized
tions. by a lease, or an approved assignment
Data means geological and geo-
thereof, to explore for and develop and
physical (G&G) facts and statistics or
produce the leased deposits in accord-
samples which have not been analyzed,
ance with the regulations in this chap-
processed, or interpreted.
ter. The term includes all parties hold-
Development means those activities
ing that authority by or through the
which take place following the dis-
lessee.
covery of minerals in paying quantities
including geophysical activities, drill- Major Federal action means any ac-
ing, construction of offshore facilities, tion or proposal by the Secretary
and operation of all onshore support fa- which is subject to the provisions of
cilities, which are for the purpose of ul- section 102(2)(C) of the National Envi-
timately producing the minerals dis- ronmental Policy Act (NEPA) (i.e., an
covered. action which will have a significant
Director means the Director of BSEE impact on the quality of the human en-
of the U.S. Department of the Interior vironment requiring preparation of an
or an official authorized to act on the Environmental Impact Statement
Director’s behalf. (EIS) pursuant to section 102(2)(C) of
Exploration means the process of NEPA).
searching for minerals on a lease in- Marine environment means the phys-
cluding: ical, atmospheric, and biological com-
(1) Geophysical surveys where mag- ponents, conditions, and factors which
netic, gravity, seismic, or other sys- interactively determine the produc-
tems are used to detect or imply the tivity, state, condition, and quality of
presence of minerals; the marine ecosystem, including the
(2) Any drilling including the drilling waters of the high seas, the contiguous
of a borehole in which the discovery of zone, transitional and intertidal areas,
a mineral other than oil, gas, or sul- salt marshes, and wetlands within the
phur is made and the drilling of any ad- coastal zone and on the OCS.
ditional boreholes needed to delineate Minerals include oil, gas, sulphur,
any mineral deposits; and geopressured-geothermal and associ-
(3) The taking of sample portions of a ated resources, and all other minerals
mineral deposit to enable the lessee to which are authorized by an Act of Con-
determine whether to proceed with de- gress to be produced from ‘‘public
velopment and production. lands’’ as defined in section 103 of the
317
§ 282.4 30 CFR Ch. II (7–1–18 Edition)
Federal Land Policy and Management § 282.4 [Reserved]

Act of 1976.
OCS mineral means any mineral de- § 282.5 Disclosure of data and informa-
posit or accretion found on or below tion to the public.
the surface of the seabed but does not (a) The Director shall make data, in-
include oil, gas, or sulphur; salt or sand formation, and samples available in ac-
and gravel intended for use in associa- cordance with the requirements and
tion with the development of oil, gas, subject to the limitations of the Act,
or sulphur; or source materials essen- the Freedom of Information Act (5
tial to production of fissionable mate- U.S.C. 552), and the implementing regu-
rials which are reserved to the United lations (43 CFR part 2).
(b) Geophysical data, processed G&G
States pursuant to section 12(e) of the
information, interpreted G&G informa-
Act.
tion, and other data and information
Operator means the individual, part- submitted pursuant to the require-
nership, firm, or corporation having ments of this part shall not be avail-
control or management of operations able for public inspection without the
on the lease or a portion thereof. The consent of the lessee so long as the
operator may be a lessee, designated lease remains in effect, unless the Di-
agent of the lessee, or holder of rights rector determines that earlier limited
under an approved operating agree- release of such information is nec-
ment. essary for the unitization of operations
Outer Continental Shelf means all sub- on two or more leases, to ensure proper
merged lands lying seaward and out- Mining Plans for a common ore body,
side of the area of lands beneath navi- or to promote operational safety. When
gable waters as defined in section 2 of the Director determines that early lim-
Submerged Lands Act (43 U.S.C. 1301) ited release of data and information is
and of which the subsoil and seabed ap- necessary, the data and information
pertain to the United States and are shall be shown only to persons with a
subject to its jurisdiction and control. direct interest in the affected lease(s),
Person means a citizen or national of unitization agreement, or joint Mining
Plan.
the United States; an alien lawfully ad-
(c) Geophysical data, processed geo-
mitted for permanent residency in the
physical information and interpreted
United States as defined in 8 U.S.C. geophysical information collected on a
1101(a)(20); a private, public, or munic- lease with high resolution systems (in-
ipal corporation organized under the cluding, but not limited to, bathym-
laws of the United States or of any etry, side-scan sonar, subbottom pro-
State or territory thereof; an associa- filer, and magnetometer) in compliance
tion of such citizens, nationals, resi- with stipulations or orders concerning
dent aliens or private, public, or mu- protection of environmental aspects of
nicipal corporations, States, or polit- the lease may be made available to the
ical subdivisions of States; or anyone public 60 days after submittal to the
operating in a manner provided for by Director, unless the lessee can dem-
treaty or other applicable inter- onstrate to the satisfaction of the Di-
national agreements. The term does rector that release of the information
not include Federal Agencies. or data would unduly damage the les-
Secretary means the Secretary of the see’s competitive position.
Interior or an official authorized to act
§ 282.6 Disclosure of data and informa-
on the Secretary’s behalf. tion to an adjacent State.
Testing means removing bulk samples
for processing tests and feasibility (a) Proprietary data, information,
and samples submitted to BSEE pursu-
studies and/or the testing of mining
ant to the requirements of this part
equipment to obtain information need-
shall be made available for inspection
ed to develop a detailed Mining Plan. by representatives of adjacent State(s)
[76 FR 64462, Oct. 18, 2011, as amended at 81 upon request by the Governor(s) in ac-
FR 36153, June 6, 2016] cordance with paragraphs (b) and (c) of
this section.
318
(b) Disclosure shall occur only after operations together with the associ-
the Governor has entered into an ated environmental protection meas-
agreement with the Secretary pro- ures needed to permit those activities
viding that: to be conducted in an environmentally
(1) The confidentiality of the infor- responsible manner; handling, meas-
mation shall be maintained; urement, and transportation of OCS
(2) In any action commenced against minerals; and other operations and ac-
the Federal Government or the State tivities conducted pursuant to a lease
for failure to protect the confiden- issued under 30 CFR part 581, or pursu-
tiality of proprietary information, the ant to a right of use and easement
Federal Government or the State, as granted under 30 CFR 582.30, by or on
the case may be, may not raise as a de- behalf of a lessee or the holder of a
fense any claim of sovereign immunity right of use and easement.
or any claim that the employee who re-
vealed the proprietary information, § 282.11 Director’s authority.
which is the basis of the suit, was act- (a)–(c) [Reserved]
ing outside the scope of the person’s (d)(1) The Director may approve the
employment in revealing the informa- consolidation of two or more OCS min-
tion; eral leases or portions of two or more
(3) The State agrees to hold the OCS mineral leases into a single min-
United States harmless for any viola- ing unit requested by lessees, or the Di-
tion by the State or its employees or rector may require such consolidation
contractors of the agreement to pro- when the operation of those leases or
tect the confidentiality of proprietary portions of leases as a single mining
data, information, and samples; and unit is in the interest of conservation
(c) The data, information, and sam- of the natural resources of the OCS or
ples available for inspection by rep- the prevention of waste. A mining unit
resentatives of adjacent State(s) pursu- may also include all or portions of one
ant to an agreement shall be related to or more OCS mineral leases with all or
leased lands. portions of one or more adjacent State
§ 282.7 Jurisdictional controversies. leases for minerals in a common
orebody. A single unit operator shall be
In the event of a controversy between responsible for submission of required
the United States and a State as to Delineation, Testing, and Mining Plans
whether certain lands are subject to covering OCS mineral operations for an
Federal or State jurisdiction, either approved mining unit.
the Governor of the State or the Sec- (2) Operations such as exploration,
retary may initiate negotiations in an testing, and mining activities con-
attempt to settle the jurisdictional ducted in accordance with an approved
controversy. With the concurrence of plan on any lease or portion of a lease
the Attorney General, the Secretary which is subject to an approved mining
may enter into an agreement with a unit shall be considered operations on
State with respect to OCS mineral ac- each of the leases that is made subject
tivities and to payment and impound- to the approved mining unit.
ing of rents, royalties, and other sums (3) Minimum royalty paid pursuant
and with respect to the issuance or to a Federal lease, which is subject to
nonissuance of new leases pending set- an approved mining unit, is creditable
tlement of the controversy. against the production royalties allo-
cated to that Federal lease during the
Subpart B—Jurisdiction and lease year for which the minimum roy-
Responsibilities of Director alty is paid.
(4) Any OCS minerals produced from
§ 282.10 Jurisdiction and responsibil- State and Federal leases which are sub-
ities of Director. ject to an approved mining unit shall
Subject to the authority of the Sec- be accounted for separately unless a
retary, the following activities are sub- method of allocating production be-
ject to the regulations in this part and tween State and Federal leases has
are under the jurisdiction of the Direc- been approved by the Director and the
tor: Exploration, testing, and mining appropriate State official.
319
§ 282.12 30 CFR Ch. II (7–1–18 Edition)
§ 282.12 Director’s responsibilities. propriate, of the design plan, fabrica-

(a) The Director is responsible for the tion plan, and installation plan for
regulation of activities to assure that platforms, artificial islands, and other
all operations conducted under a lease installations and devices permanently
or right of use and easement are con- or temporarily attached to the seabed.
ducted in a manner that protects the The approval, disapproval, or require-
environment and promotes orderly de- ment to modify such plans may take
velopment of OCS mineral resources. the form of a condition of granting a
Those activities are to be designed to right of use and easement under para-
prevent serious harm or damage to, or graph (a) of this section or as author-
waste of, any natural resource (includ- ized under any lease issued or main-
ing OCS mineral deposits and oil, gas, tained under the Act.
and sulphur resources in areas leased (g) [Reserved]
or not leased), any life (including fish (h) The Director may prescribe or ap-
and other aquatic life), property, or the prove, in writing or orally, departures
marine, coastal, or human environ- from the operating requirements of the
ment. regulations of this part when such de-
(b)–(d) [Reserved] partures are necessary to facilitate the
(e) The Director shall assure that a proper development of a lease; to con-
scheduled onsite compliance inspection serve natural resources; or to protect
of each facility which is subject to reg- life (including fish and other aquatic
ulations in this part is conducted at life), property, or the marine, coastal,
least once a year. The inspection shall or human environment.
be to determine that the lessee is in
compliance with the requirements of § 282.13 Suspension of production or
other operations.
the law; provisions of the lease; the ap-
proved Delineation, Testing, or Mining (a) The Director may direct the sus-
Plan; and the regulations in this part. pension or temporary prohibition of
Additional unscheduled onsite inspec- production or any other operation or
tions shall be conducted without ad- activity on all or any part of a lease
vance notice to the lessee to assure when it has been determined that such
compliance with the provisions of ap- suspension or temporary prohibition is
plicable law; the lease; the approved in the National interest to:
Delineation, Testing, or Mining Plan; (1) Facilitate proper development of
and the regulations in this part. a lease including a reasonable time to
(f)(1) The Director shall, after com- develop a mine and construct necessary
pletion of the technical and environ- support facilities, or
mental evaluations, approve, dis- (2) Allow for the construction or ne-
approve, or require modification of the gotiation for use of transportation fa-
lessee’s requests, applications, plans, cilities.
and notices submitted pursuant to the (b) The Director may also direct or,
provisions of this part; issue orders to at the request of the lessee, approve a
govern lease operations; and require suspension or temporary prohibition of
compliance with applicable provisions production or any other operation or
of the law, the regulations, the lease, activity, if:
and the approved Delineation, Testing, (1) The lessee failed to comply with a
or Mining Plans. The Director may provision of applicable law, regulation,
give oral orders or approvals whenever order, or the lease;
prior approval is required before the (2) There is a threat of serious, irrep-
commencement of an operation or ac- arable, or immediate harm or damage
tivity. Oral orders or approvals given to life (including fish and other aquatic
in response to a written request shall life), property, any mineral deposit, or
be confirmed in writing within 3 work- the marine, coastal, or human environ-
ing days after issuance of the order or ment;
granting of the oral approval. (3) The suspension or temporary pro-
(2) The Director shall, after comple- hibition is in the interest of National
tion of the technical and environ- security or defense;

mental evaluations, approve, dis- (4) The suspension or temporary pro-
approve, or require modification, as ap- hibition is necessary for the initiation
320
and conduct of an environmental eval- proval of such plans in part 582 of this
uation to define mitigation measures title.
to avoid or minimize adverse environ- (e)(1) When the Director orders or
mental impacts. issues a suspension or a temporary pro-
(5) The suspension or temporary prohibition pursuant to paragraph (b)(2) of
hibition is necessary to facilitate the this section, the Director may require
installation of equipment necessary for the lessee to conduct site-specific stud-
safety of operations and protection of ies to identify and evaluate the
the environment; cause(s) of the hazard(s) generating the
(6) The suspension or temporary pro- suspension or temporary prohibition,
hibition is necessary to allow for undue the potential for damage from the haz-
delays encountered by the lessee in ob- ard(s), and the measures available for
taining required permits or consents, mitigating the hazard(s). The nature,
including administrative or judicial scope, and content of any study shall
challenges or appeals; be subject to approval by the Director.
(7) The Director determines that con- The lessee shall furnish copies and all
tinued operations would result in pre- results of any such study to the Direc-
mature abandonment of a producing tor. The cost of the study shall be
mine, resulting in the loss of otherwise borne by the lessee unless the Director
recoverable OCS minerals; arranges for the cost of the study to be
borne by a party other than the lessee.
(8) The Director determines that the
The Director shall make results of any
lessee cannot successfully operate a
such study available to interested par-
producing mine due to market condi-
ties and to the public as soon as prac-
tions that are either temporary in na- ticable after the completion of the
ture or require temporary shutdown study and submission of the results
and reinvestment in order for the les- thereof.
see to adapt to the conditions; or (2) When the Director determines
(9) The suspension or temporary pro- that measures are necessary, on the
hibition is necessary to comply with basis of the results of the studies con-
judicial decrees prohibiting production ducted in accordance with paragraph
or any other operation or activity, or (e)(1) of this section and other informa-
the permitting of those activities, ef- tion available to and identified by the
fective the date set by the court for Director, the lessee will be required to
that prohibition. take appropriate measures to mitigate,
(c) When the Director orders or ap- avoid, or minimize the damage or po-
proves a suspension or a temporary tential damage on which the suspen-
prohibition of operation or activity in- sion or temporary prohibition is based.
cluding production on all of a lease In choosing between alternative miti-
pursuant to paragraph (a) or (b) of this gation measures, the Director will bal-
section, the term of the lease shall be ance the cost of the required measures
extended for a period of time equal to against the reduction or potential re-
the period of time that the suspension duction in damage or threat of damage
or temporary prohibition is in effect, or harm to life (including fish and
except that no lease shall be so ex- other aquatic life), to property, to any
tended when the suspension or tem- mineral deposits (in areas leased or not
porary prohibition is the result of the leased), to the National security or de-
lessee’s gross negligence or willful vio- fense, or to the marine, coastal, or
lation of a provision of the lease or human environment. When deemed ap-
governing regulations. propriate by the Director, the lessee
(d) The Director may, at any time must submit to the Bureau of Ocean
within the period prescribed for a sus- Energy Management a revised Delinea-
pension or temporary prohibition tion, Testing, or Mining Plan that in-
issued pursuant to paragraph (b)(2) of corporates the mitigation measures re-
this section, require the lessee to sub- quired by the Director.
mit a Delineation, Testing, or Mining (f)(1) If under the provisions of para-
Plan to the Bureau of Ocean Energy graphs (b)(2), (3), and (4) of this section,
Management for approval in accord- the Director, with respect to any lease,
ance with the requirements for the ap- directs the suspension of production or
321
§ 282.14 30 CFR Ch. II (7–1–18 Edition)
other operations on the entire lease- rental or royalty relief resulting there-
hold, no payment of rental or min- from.
imum royalty shall be due for or dur-
ing the period of the directed suspen- FR 36153, June 6, 2016]
sion and the time for the lessee specify
royalty free period of a period of re- § 282.14 Noncompliance, remedies, and
duced royalty pursuant to 30 CFR penalties.
581.28(b) will be extended for the period
(a)(1) If the Director determines that
of directed suspension. If under the
a lessee has failed to comply with ap-
provisions of paragraphs (b)(2), (3), and
plicable provisions of law; the regula-
(4) of this section the Director, with re- tions in this part; other applicable reg-
spect to a lease on which there has ulations; the lease; the approved Delin-
been no production, directs the suspen- eation, Testing, or Mining Plan; or the
sion of operations on the entire lease- Director’s orders or instructions, and
hold, no payment of rental shall be due the Director determines that such non-
during the period of the directed sus- compliance poses a threat of imme-
pension. diate, serious, or irreparable damage to
(2) If under the provisions of this sec- the environment, the mine or the de-
tion, the Director grants the request of posit being mined, or other valuable
a lessee for a suspension of production mineral deposits or other resources,
or other operations, the lessee’s obliga- the Director shall order the lessee to
tions to pay rental, minimum royalty, take immediate and appropriate reme-
or royalty shall continue to apply dur- dial action to alleviate the threat. Any
ing the period of the approved suspen- oral orders shall be followed up by
sion, unless the Director’s approval of service of a notice of noncompliance
the lessee’s request for suspension au- upon the lessee by delivery in person to
thorizes the payment of a lesser the lessee or agent, or by certified or
amount during the period of approved registered mail addressed to the lessee
suspension. If under the provision of at the last known address.
this section, the Director grants a les- (2) If the Director determines that
see’s request for a suspension of pro- the lessee has failed to comply with ap-
duction or other operations for a lease plicable provisions of law; the regula-
which includes provisions for a time tions in this part; other applicable reg-
period which the lessee may specify ulations; the lease; the requirements of
during which production from the an approved Delineation, Testing, or
leasehold would be royalty free or sub- Mining Plan; or the Director’s orders
ject to a reduced royalty obligation or instructions, and such noncompli-
pursuant to 30 CFR 581.28(b), the time ance does not pose a threat of imme-
during which production from a lease- diate, serious, or irreparable damage to
hold may be royalty free or subject to the environment, the mine or the de-
a reduced royalty obligation shall not posit being mined, or other valuable
be extended unless the Director’s ap- mineral deposits or other resources,
proval of the suspension specifies oth- the Director shall serve a notice of
erwise. noncompliance upon the lessee by de-
(3) If the lease anniversary date falls livery in person to the lessee or agent
within a period of suspension for which or by certified or registered mail ad-
no rental or minimum royalty pay- dressed to the lessee at the last known
ments are required under paragraph (a) address.
of this section, the prorated rentals or (b) A notice of noncompliance shall
minimum royalties are due and pay- specify in what respect(s) the lessee
able as of the date the suspension pe- has failed to comply with the provi-
riod terminates. These amounts shall sions of applicable law; regulations; the
be computed and notice thereof given lease; the requirements of an approved
the lessee. The lessee shall pay the Delineation, Testing, or Mining Plan;
amount due within 30 days after re- or the Director’s orders or instruc-
ceipt of such notice. The anniversary tions, and shall specify the action(s)
date of a lease shall not change by rea- which must be taken to correct the
son of any period of lease suspension or noncompliance and the time limits
322
within which such action must be eral deposit and other resources of the
taken. OCS.
(c) Failure of a lessee to take the ac-
tions specified in the notice of non- §§ 282.22–282.26 [Reserved]
compliance within the time limit spec-
ified shall be grounds for a suspension § 282.27 Conduct of operations.
of operations and other appropriate ac- (a) The lessee shall conduct all explo-
tions, including but not limited to the ration, testing, development, and pro-
assessment of a civil penalty of up to duction activities and other operations
$40,000 per day for each violation that in a safe and workmanlike manner and
is not corrected within the time period shall maintain equipment in a manner
specified (43 U.S.C. 1350(b)). which assures the protection of the
(d) Whenever the Director determines lease and its improvements, the health
that a violation of or failure to comply and safety of all persons, and the con-
with any provision of the Act; or any servation of property, and the environ-
provision of a lease, license, or permit ment.
issued pursuant to the Act; or any pro-
(b) Nothing in this part shall pre-
vision of any regulation promulgated
clude the use of new or alternative
under the Act probably occurred and
technologies, techniques, procedures,
that such apparent violation continued
equipment, or activities, other than
beyond notice of the violation and the
expiration of the reasonable time pe- those prescribed in the regulations of
riod allowed for corrective action, the this part, if such other technologies,
Director shall follow the procedures techniques, procedures, equipment, or
concerning remedies and penalties in activities afford a degree of protection,
subpart N, Remedies and Penalties, of safety, and performance equal to or
30 CFR part 250 to determine and assess better than that intended to be
an appropriate penalty. achieved by the regulations of this
(e) The remedies and penalties pre- part, provided the lessee obtains the
scribed in this section shall be concur- written approval of the Director prior
rent and cumulative, and the exercise to the use of such new or alternative
of one shall not preclude the exercise of technologies, techniques, procedures,
the other. Further, the remedies and equipment, or activities.
penalties prescribed in this section (c) The lessee shall immediately no-
shall be in addition to any other rem- tify the Director when there is a death
edies and penalties afforded by any or serious injury; fire, explosion, or
other law or regulation (43 U.S.C. other hazardous event which threatens
1350(e)). damage to life, a mineral deposit, or
[76 FR 64462, Oct. 18, 2011, as amended at 81 equipment; spills of oil, chemical re-
FR 36154, June 6, 2016] agents, or other liquid pollutants
which could cause pollution; or damage
§ 282.15 [Reserved] to aquatic life or the environment as-
sociated with operations on the lease.
Subpart C—Obligations and As soon as practical, the lessee shall
Responsibilities of Lessees file a detailed report on the event and
action(s) taken to control the situation
§ 282.20 [Reserved] and to mitigate any further damage.
(d)(1) Lessees shall provide means, at
§ 282.21 Plans, general. all reasonable hours either day or
(a)–(d) [Reserved] night, for the Director to inspect or in-
(e) Leasehold activities shall be car- vestigate the conditions of the oper-
ried out with due regard to conserva- ation and to determine whether appli-
tion of resources, paying particular at- cable regulations; terms and conditions
tention to the wise management of of the lease; and the requirements of
OCS mineral resources, minimizing the approved Delineation, Testing, or
waste of the leased resource(s) in min- Mining Plan are being met.
ing and processing, and preventing (2) A lessee shall, on request by the
damage to unmined parts of the min- Director, furnish food, quarters, and
323
§ 282.27 30 CFR Ch. II (7–1–18 Edition)
transportation for BSEE representa- (iv) Cuttings from holes drilled on

tives to inspect its facilities. Upon re- the lease shall be disposed of and mon-
quest, you will be reimbursed by BSEE itored in accordance with the approved
for the actual costs that you incur as a plan.
result of providing transportation to (v) The use of muds in drilling holes
BSEE representatives. In addition, you on the lease and their subsequent dis-
will be reimbursed for the actual costs position shall be according to the ap-
that you incur for providing food and proved plan.
quarters for a BSEE representative’s (2) All drill holes which are suscep-
stay of more than 12 hours. You must tible to logging shall be logged, and the
submit an invoice for reimbursement lessee shall prepare a detailed litho-
within 90 days of the inspection. logic log of each drill hole. Drill holes
(e) Mining and processing vessels, which are drilled deeper than 500 feet
platforms, structures, artificial is- shall be drilled in a manner which per-
lands, and mobile drilling units which mits logging. Copies of logs of cores
have helicopter landing facilities shall and cuttings and all in-hole surveys
be identified with at least one sign such as electronic logs, gamma ray
using letters and figures not less than logs, neutron density logs, and sonic
12 inches in height. Signs for struc- logs shall be provided to the Director.
tures without helicopter landing facili- (3) Drill holes for exploration, test-
ties shall be identified with at least ing, development, or production shall
one sign using letters and figures not be properly plugged and abandoned to
less than 3 inches in height. Signs shall the satisfaction of the Director in ac-
be affixed at a location that is visible cordance with the approved plan and in
to approaching traffic and shall con- such a manner as to protect the surface
tain the following information which and not endanger any operation; any
may be abbreviated: freshwater aquifer; or deposit of oil,
(1) Name of the lease operator; gas, or other mineral substance.
(2) The area designation based on Of- (g) The use of explosives on the lease
ficial OCS Protraction Diagrams; shall be in accordance with the ap-
(3) The block number in which the fa- proved plan.
cility is located; and (h)(1) Any equipment placed on the
(4) Vessel, platform, structure, or rig seabed shall be designed to allow its re-
name. covery and removal upon abandonment
(f)(1) Drilling. (i) When drilling on of leasehold activities.
lands valuable or potentially valuable (2) Disposal of equipment, cables,
for oil and gas or geopressured or geo- chains, containers, or other materials
thermal resources, drilling equipment into the ocean is prohibited.
shall be equipped with blowout preven- (3) Materials, equipment, tools, con-
tion and control devices acceptable to tainers, and other items used on the
the Director before penetrating more OCS which are of such shape or con-
than 500 feet unless a different depth is figuration that they are likely to snag
specified in advance by the Director. or damage fishing devices shall be han-
(ii) In cases where the Director deter- dled and marked as follows:
mines that there is sufficient likeli- (i) All loose materials, small tools,
hood of encountering pressurized hy- and other small objects shall be kept in
drocarbons, the Director may require a suitable storage area or a marked
that the lessee comply with all or por- container when not in use or in a
tions of the requirements in part 250, marked container before transport over
subpart D, of this title. OCS waters;
(iii) Before drilling any hole which (ii) All cable, chain, or wire segments
may penetrate an aquifer, the lessee shall be recovered after use and se-
shall follow the procedures included in curely stored;
the approved plan for the penetration (iii) Skid-mounted equipment, port-
and isolation of the aquifer during the able containers, spools or reels, and
drilling operation, during use of the drums shall be marked with the own-
hole, and for subsequent abandonment er’s name prior to use or transport over
of the hole. OCS waters; and
324
(iv) All markings must clearly iden- with the practices approved in the
tify the owner and must be durable Testing or Mining Plan.
enough to resist the effects of the envi- (m) No material shall be discharged
ronmental conditions to which they or disposed of except in accordance
are exposed. with the approved disposal practice and
(4) Any equipment or material de- procedures contained in the approved
scribed in paragraphs (h)(2), (h)(3)(ii), Delineation, Testing, or Mining Plan.
and (iii) of this section that is lost
overboard shall be recorded on the
FR 36154, June 6, 2016]
daily operations report of the facility
and reported to the Director and to the § 282.28 Environmental protection
U.S. Coast Guard. measures.
(i) Any bulk sampling or testing that
(a)–(b) [Reserved]
is necessary to be conducted prior to
submission of a Mining Plan shall be in (c)(1) The lessee shall monitor activi-
accordance with an approved Testing ties in a manner that develops the data
Plan. The sale of any OCS minerals ac- and information necessary to enable
quired under an approved Testing Plan the Director to assess the impacts of
shall be subject to the payment of the exploration, testing, mining, and proc-
royalty specified in the lease to the essing activities on the environment on
United States. and off the lease; develop and evaluate
(j) Installations and structures: (1) methods for mitigating adverse envi-
The lessee shall design, fabricate, in- ronmental effects; validate assess-
stall, use, inspect, and maintain all in- ments made in previous environmental
stallations and structures, including evaluations; and ensure compliance
platforms on the OCS, to assure the with lease and other requirements for
structural integrity of all installations the protection of the environment.
and structures for the safe conduct of (2) Monitoring of environmental ef-
exploration, testing, mining, and proc- fects shall include determination of the
essing activities considering the spe- spatial and temporal environmental
cific environmental conditions at the changes induced by the exploration,
location of the installation or struc- testing, development, production, and
ture. processing activities on the flora and
(2) All fixed or bottom-founded plat- fauna of the sea surface, the water col-
forms or other structures, e.g., artifi- umn, and/or the seafloor.
cial islands shall be designed, fab- (3) The Director may place observers
ricated, installed, inspected, and main- onboard exploration, testing, mining,
tained in accordance with the provi- and processing vessels; installations; or
sions of 30 CFR part 250, subpart I. structures to ensure that the provi-
(k) The lessee shall not produce any sions of the lease, the approved plan,
OCS mineral until the method of meas- and these regulations are followed and
urement and the procedures for prod- to evaluate the effectiveness of the ap-
uct valuation have been instituted in proved monitoring and mitigation
accordance with the approved Testing practices and procedures in protecting
or Mining Plan. The lessee shall enter the environment.
the weight or quantity and quality of (4) The Director may order or the les-
each mineral produced in accordance see may request a modification of the
with 30 CFR 582.29. approved monitoring program prior to
(l) The lessee shall conduct OCS min- the startup of testing activities or
eral processing operations in accord- commercial-scale recovery, and at
ance with the approved Testing or Min- other appropriate times as necessary,
ing Plan and use due diligence in the to reflect accurately the proposed oper-
reduction, concentration, or separation ations or to incorporate the results of
of mineral substances by mechanical or recent research or improved moni-
chemical processes, by evaporation, or toring techniques.
other means, so that the percentage of (5) [Reserved]

concentrates or other mineral sub- (6) When required, the monitoring
stances are recovered in accordance plan will specify:
325
§§ 282.29–282.30 30 CFR Ch. II (7–1–18 Edition)
(i) The sampling techniques and pro- tification for granting the requested
cedures to be used to acquire the need- suspension, a schedule of work leading
ed data and information; to the initiation or restoration of pro-
(ii) The format to be used in analysis duction or other operations, and any
and presentation of the data and infor- other information the Director may re-
mation; quire.
(iii) The equipment, techniques, and
procedures to be used in carrying out Subpart D—Payments
the monitoring program; and
(iv) The name and qualifications of § 282.40 [Reserved]
person(s) designated to be responsible
for carrying out the environmental § 282.41 Method of royalty calculation.
monitoring. In the event that the provisions of
(d) Lessees shall develop and conduct royalty management regulations in
their operations in a manner designed part 1206 of chapter XII do not apply to
to avoid, minimize, or otherwise miti- the specific commodities produced
gate environmental impacts and to under regulations in this part, the les-
demonstrate the effectiveness of efforts see shall comply with procedures speci-
to that end. Based upon results of the fied in the leasing notice.
monitoring program, the Director may
specify particular procedures for miti- § 282.42 [Reserved]
gating environmental impacts.
(e) [Reserved] Subpart E—Appeals
§§ 282.29–282.30 [Reserved] § 282.50 Appeals.
§ 282.31 Suspension of production or See 30 CFR part 290 for instructions
other operations. on how to appeal any order or decision
A lessee may submit a request for a that we issue under this part.
suspension of production or other oper-
ations. The request shall include jus- PART 285 [RESERVED]
326
PART 290—APPEAL PROCEDURES there is no receipt, the date otherwise

documented.
Subpart A—Bureau of Safety and Environ-
§ 290.4 How do I file an appeal?
mental Enforcement Appeal Proce-
dures For your appeal to be filed, BSEE
must receive all of the following within
Sec. 60 days after you receive the decision
290.1 What is the purpose of this subpart? or order:
290.2 Who may appeal? (a) A written Notice of Appeal to-
290.3 What is the time limit for filing an ap- gether with a copy of the decision or
peal?
order you are appealing in the office of
290.4 How do I file an appeal?
290.5 Can I obtain an extension for filing my the BSEE officer that issued the deci-
Notice of Appeal? sion or order. You cannot extend the
290.6 Are informal resolutions permitted? 60-day period for that office to receive
290.7 Do I have to comply with the decision your Notice of Appeal; and
or order while my appeal is pending? (b) A nonrefundable processing fee of
290.8 How do I exhaust my administrative $150 paid with the Notice of Appeal.
remedies? (1) You must pay electronically
through the Fees for Services page on
Subpart B [Reserved] the BSEE Web site at http://
www.bsee.gov, and you must include a
AUTHORITY: 5 U.S.C. 305; 43 U.S.C. 1334. copy of the Pay.gov confirmation re-
SOURCE: 76 FR 64462, Oct. 18, 2011, unless ceipt page with your Notice of Appeal.
otherwise noted. (2) You cannot extend the 60-day pe-
riod for payment of the processing fee.
Subpart A—Bureau of Safety and [76 FR 64462, Oct. 18, 2011, as amended at 81
Environmental Enforcement FR 36154, June 6, 2016]
Appeal Procedures § 290.5 Can I obtain an extension for
filing my Notice of Appeal?
§ 290.1 What is the purpose of this sub-
part? You cannot obtain an extension of
The purpose of this subpart is to ex- time to file the Notice of Appeal. See
plain the procedures for appeals of Bu- 43 CFR 4.411(c).
reau of Safety and Environmental En- § 290.6 Are informal resolutions per-
forcement (BSEE) decisions and orders mitted?
issued under 30 CFR chapter II.
(a) You may seek informal resolution
§ 290.2 Who may appeal? with the issuing officer’s next level su-
pervisor during the 60-day period estab-
If you are adversely affected by a lished in § 290.3.
BSEE official’s final decision or order (b) Nothing in this subpart precludes
issued under 30 CFR chapter II, you resolution by settlement of any appeal
may appeal that decision or order to or matter pending in the administra-
the Interior Board of Land Appeals tive process after the 60-day period es-
(IBLA). Your appeal must conform tablished in § 290.3.
with the procedures found in this sub-
part and 43 CFR part 4, subpart E. § 290.7 Do I have to comply with the
decision or order while my appeal
§ 290.3 What is the time limit for filing is pending?
an appeal? (a) The decision or order is effective
You must file your appeal within 60 during the 60-day period for filing an
days after you receive BSEE’s final de- appeal under § 290.3 unless:
cision or order. The 60-day time period (1) BSEE notifies you that the deci-
applies rather than the time period sion or order, or some portion of it, is
provided in 43 CFR 4.411(a). A decision suspended during this period because
or order is received on the date you there is no likelihood of immediate and
sign a receipt confirming delivery or, if
327
§ 290.8 30 CFR Ch. II (7–1–18 Edition)
irreparable harm to human life, the en- 291.111 How does BSEE treat the confiden-
vironment, any mineral deposit, or tial information I provide?
property; or 291.112 What process will BSEE follow in
rendering a decision on whether a grant-
(2) You post a surety bond under 30 ee or transporter has provided open and
CFR 250.1409 pending the appeal chal- nondiscriminatory access?
lenging an order to pay a civil penalty. 291.113 What actions may BSEE take to
(b) This section applies rather than remedy denial of open and nondiscrim-
43 CFR 4.21(a) for appeals of BSEE or- inatory access?
ders. 291.114 How do I appeal to the IBLA?
(c) After you file your appeal, IBLA 291.115 How do I exhaust administrative
may grant a stay of a decision or order remedies?
under 43 CFR 4.21(b); however, a deci- AUTHORITY: 31 U.S.C. 9701, 43 U.S.C. 1334.
sion or order remains in effect until SOURCE: 76 FR 64462, Oct. 18, 2011, unless
IBLA grants your request for a stay of otherwise noted.
the decision or order under appeal.
§ 291.1 What is BSEE’s authority to col-
§ 290.8 How do I exhaust my adminis- lect information?
trative remedies?
(a) If you receive a decision or order Budget (OMB) has approved the infor-
issued under chapter II, subchapter B, mation collection requirements in this
you must appeal that decision or order part under 44 U.S.C. 3501 et seq., and as-
to IBLA under 43 CFR part 4, subpart E signed OMB Control Number 1014–0012.
to exhaust administrative remedies. (b) An agency may not conduct or
(b) This section does not apply if the sponsor, and you are not required to re-
Assistant Secretary for Land and Min- spond to, a collection of information
erals Management or the IBLA makes unless it displays a currently valid
a decision or order immediately effec- OMB control number.
tive notwithstanding an appeal. (c) We use the information collected
to determine whether or not the ship-
Subpart B [Reserved] per has been denied open and non-
discriminatory access to Outer Conti-
PART 291—OPEN AND NON- nental Shelf (OCS) pipelines as sections
DISCRIMINATORY ACCESS TO of 5(e) and (f) of the OCS Lands Act
OIL AND GAS PIPELINES UNDER (OCSLA) require.
(d) Respondents are companies that
THE OUTER CONTINENTAL SHELF ship or transport oil and gas produc-
LANDS ACT tion across the OCS. Responses are re-
quired to obtain or retain benefits. We
Sec. will protect information considered
291.1 What is BSEE’s authority to collect
information?
proprietary under applicable law.
291.100 What is the purpose of this part? (e) Send comments regarding any as-
291.101 What definitions apply to this part? pect of the collection of information
291.102 May I call the BSEE Hotline to in- under this part, including suggestions
formally resolve an allegation that open for reducing the burden, to the Infor-
and nondiscriminatory access was de- mation Collection Clearance Officer,
nied? Bureau of Safety and Environmental
291.103 May I use alternative dispute resolu- Enforcement, 45600 Woodland Road,
tion (ADR) to informally resolve an alle-
Sterling, VA 20166.
gation that and nondiscriminatory ac-
cess was denied? [76 FR 64462, Oct. 18, 2011, as amended at 81
291.104 Who may file a complaint or a third- FR 36154, June 6, 2016]
party brief?
291.105 What must a complaint contain? § 291.100 What is the purpose of this
291.106 How do I file a complaint? part?
291.107 How do I answer a complaint?
291.108 How do I pay the processing fee?
This part:
(a) Explains the procedures for filing
291.109 Can I ask for a fee waiver or a re-

duced processing fee? a complaint with the Director, Bureau
291.110 Who may BSEE require to produce of Safety and Environmental Enforce-
information? ment (BSEE) alleging that a grantee or
328
transporter has denied a shipper of pro- Outer Continental Shelf means all sub-
duction from the OCS open and non- merged lands lying seaward and out-
discriminatory access to a pipeline; side of the area of lands beneath navi-
(b) Explains the procedures BSEE gable waters as defined in section 2 of
will employ to determine whether vio- the Submerged Lands Act (43 U.S.C.
lations of the requirements of the 1301) and of which the subsoil and sea-
OCSLA have occurred, and to remedy bed appertain to the United States and
any violations; and are subject to its jurisdiction and con-
(c) Provides for alternative informal trol.
means of resolving pipeline access dis- Party means any person who files a
putes through either Hotline-assisted complaint, any person who files an an-
procedures or alternative dispute reso- swer, and BSEE.
lution (ADR). Person means an individual, corpora-
tion, government entity, partnership,
§ 291.101 What definitions apply to this
part? association (including a trust or lim-
ited liability company), consortium, or
As used in this part: joint venture (when established as a
Accessory means a platform, a major separate entity).
subsea manifold, or similar subsea Pipeline is the piping, risers, acces-
structure attached to a right-of-way sories and appurtenances installed for
(ROW) pipeline to support pump sta-
transportation of oil and gas.
tions, compressors, manifolds, etc. The
Serve means personally delivering a
site used for an accessory is part of the
document to a person, or sending a doc-
pipeline ROW grant.
Appurtenance means equipment, de- ument by U.S. mail or private delivery
vice, apparatus, or other object at- services that provide proof of delivery
tached to a horizontal component or (such as return receipt requested) to a
riser. Examples include anodes, valves, person.
flanges, fittings, umbilicals, subsea Shipper means a person who con-
manifolds, templates, pipeline end tracts or wants to contract with a
modules (PLEMs), pipeline end termi- grantee or transporter to transport oil
nals (PLETs), anode sleds, other sleds, or gas through the grantee’s or trans-
and jumpers (other than jumpers con- porter’s pipeline.
necting subsea wells to manifolds). Transportation means, for purposes of
FERC pipeline means any pipeline this part only, the movement of oil or
within the jurisdiction of the Federal gas through an OCSLA pipeline.
Energy Regulatory Commission Transporter means, for purposes of
(FERC) under the Natural Gas Act, 15 this part only, any person who owns or
U.S.C. 717–717z, or the Interstate Com- operates an OCSLA oil or gas pipeline.
merce Act, 42 U.S.C. 7172(a) and (b).
Grantee means any person to whom § 291.102 May I call the BSEE Hotline
BSEE has issued an oil or gas pipeline to informally resolve an allegation
permit, license, easement, right-of- that open and nondiscriminatory
access was denied?
way, or other grant of authority for
transportation on or across the OCS Before filing a complaint under
under 30 CFR part 250, subpart J, or 43 § 291.106, you may attempt to infor-
U.S.C. 1337(p), and any person who has mally resolve an allegation concerning
an assignment of a permit, license, open and nondiscriminatory access by
easement, right-of-way or other grant calling the toll-free BSEE Pipeline
of authority, or who has an assignment Open Access Hotline at 1–888–232–1713.
of any rights subject to any of those (a) BSEE Hotline staff will infor-
grants of authority under 30 CFR part mally seek information needed to re-
250, subpart J or 43 U.S.C. 1337(p). solve the dispute. BSEE Hotline staff
IBLA means the Interior Board of will attempt to resolve disputes with-
Land Appeals. out litigation or other formal pro-
OCSLA pipeline means any oil or gas ceedings. The Hotline staff will not at-
pipeline for which BSEE has issued a tempt to resolve matters that are be-
permit, license, easement, right-of- fore BSEE or FERC in docketed pro-
way, or other grant of authority. ceedings.
329
§ 291.103 30 CFR Ch. II (7–1–18 Edition)
(b) BSEE Hotline staff may provide (b) Any person that believes its inter-
information to you and give informal ests may be affected by precedents es-
oral advice. The advice given is not tablished by adjudication of com-
binding on BSEE, the Department of plaints under this rule may submit a
the Interior (DOI), or any other person. brief to BSEE. The brief must be served
(c) To the extent permitted by law, following the procedure set out in
the BSEE Hotline staff will treat all § 291.107. After considering the brief, it
information it obtains as non-public is within BSEE’s discretion as to
and confidential. whether BSEE may:
(d) You may call the BSEE Hotline (1) Address the brief in its decision;
anonymously. (2) Not address the brief in its deci-
(e) If you contact the BSEE Hotline, sion; or
you may file a complaint under this (3) Include the submitter of the brief
part if discussions assisted by BSEE in the proceeding as a party.
Hotline staff are unsuccessful at re-
solving the matter. § 291.105 What must a complaint con-
(f) You may terminate use of the tain?
BSEE Hotline procedure at any time. For purposes of this subpart, a com-
plaint means a comprehensive written
§ 291.103 May I use alternative dispute
resolution (ADR) to informally re- brief stating the legal and factual basis
solve an allegation that open and for the allegation that a shipper was
nondiscriminatory access was de- denied open and nondiscriminatory ac-
nied? cess, together with supporting mate-
You may ask to use ADR either be- rial. A complaint must:
fore or after you file a complaint. To (a) Clearly identify the action or in-
make a request, call the BSEE at 1–888– action which is alleged to violate 43
232–1713 or write to us at the following U.S.C. 1334(e) or (f)(1)(A);
address: Director, Bureau of Safety and (b) Explain how the action or inac-
Environmental Enforcement, Atten- tion violates 43 U.S.C. 1334(e) or
tion: Office of Policy and Analysis, 1849 (f)(1)(A);
C Street, NW., Mail Stop 5438, Wash- (c) Explain how the action or inac-
ington, DC 20240–0001. tion affects your interests, including
(a) You may request that ADR be ad- practical, operational, or other non-fi-
ministered by: nancial impacts;
(1) A contracted ADR provider agreed (d) Estimate any financial impact or
to by all parties; burden;
(2) The Department’s Office of Col- (e) State the specific relief or remedy
laborative Action and Dispute Resolu- requested; and
tion (CADR); or (f) Include all documents that sup-
(3) BSEE staff trained in ADR and port the facts in your complaint in-
certified by the CADR. cluding, but not limited to, contracts
(b) Each party must pay its respec- and any affidavits that may be nec-
tive share of all costs and fees associ- essary to support particular factual al-
ated with any contracted or Depart- legations.
mental ADR provider. For purposes of
this section, BSEE is not a party in an § 291.106 How do I file a complaint?
ADR proceeding. To file a complaint under this part,
[76 FR 64462, Oct. 18, 2011, as amended at 81 you must:
FR 36154, June 6, 2016] (a) File your complaint with the Di-
rector, Bureau of Safety and Environ-
§ 291.104 Who may file a complaint or mental Enforcement at the following
a third-party brief? address: Director, Bureau of Safety and
(a) You may file a complaint under Environmental Enforcement, Atten-
this subpart if you are a shipper and tion: Office of Policy and Analysis, 1849
you believe that you have been denied C Street, NW., Mail Stop 5438, Wash-
open and nondiscriminatory access to ington, DC 20240–0001; and

an OCSLA pipeline that is not a FERC (b) Include a nonrefundable proc-
pipeline. essing fee of $7,500 under § 291.108(a) or
330
a request for reduction or waiver of the claim under § 291.111 for confiden-
fee under § 291.109(a); and tiality, serve the redacted copy and
(c) Serve your complaint on all per- proposed form of a protective agree-
sons named in the complaint. If you ment to all parties named in the com-
make a claim under § 291.111 for con- plaint, including the complainant.
fidentiality, serve the redacted copy
and proposed form of a protective FR 36154, June 6, 2016]
agreement on all persons named in the
complaint. § 291.108 How do I pay the processing
(d) Complaints shall not be filed later fee?
than 2 years from the time of the al-
(a) You must pay the processing fee
leged access denial. If the complaint is
electronically through the Fees for
filed later than 2 years from the time
Services page on the BSEE Web site at
of the alleged access denial, the BSEE
http://www.bsee.gov, and you must in-
Director will not consider the com-
clude a copy of the Pay.gov confirma-
plaint and the case will be closed.
tion receipt page with your complaint.
[76 FR 64462, Oct. 18, 2011, as amended at 81 (b) You must include with the pay-
FR 36154, June 6, 2016] ment:
(1) Your taxpayer identification num-
§ 291.107 How do I answer a com- ber;
plaint?
(2) Your payor identification number,
(a) If you have been served a com- if applicable; and
plaint under § 291.106, you must file an (3) The complaint caption, or any
answer within 60 days of receiving the other applicable identification of the
complaint. If you miss this deadline, complaint you are filing.
BSEE may disregard your answer. We
consider your answer to be filed when [76 FR 64462, Oct. 18, 2011, as amended at 81
FR 36154, June 6, 2016]
the BSEE Director receives it at the
following address: Director, Bureau of § 291.109 Can I ask for a fee waiver or
Safety and Environmental Enforce- a reduced processing fee?
ment, Attention: Office of Policy and
(a) BSEE may grant a fee waiver or
Analysis, 1849 C Street, NW., Mail Stop
fee reduction in extraordinary cir-
5438, Washington, DC 20240–0001.
(b) For purposes of this paragraph, an cumstances. You may request a waiver
answer means a comprehensive written or reduction of your fee by:
brief stating the legal and factual basis (1) Sending a written request to the
refuting the allegations in the com- BSEE Office of Policy and Analysis
plaint, together with supporting mate- when you file your complaint; and
rial. You must: (2) Demonstrating in your request
(1) Attach to your answer a copy of that you are unable to pay the fee or
the complaint or reference the assigned that payment of the full fee would im-
BSEE docket number (you may obtain pose an undue hardship upon you.
the docket number by calling the Of- (b) The BSEE Office of Policy and
fice of Policy and Analysis at (202) 208– Analysis will send you a written deci-
1901); sion granting or denying your request
(2) Explain in your answer why the for a fee waiver or a fee reduction.
action or inaction alleged in the com- (1) If we grant your request for a fee
plaint does not violate 43 U.S.C. 1334(e) reduction, you must pay the reduced
or (f)(1)(A); processing fee within 30 days of the
(3) Include with your answer all docu- date you receive our decision.
ments in your possession or that you (2) If we deny your request, you must
can otherwise obtain that support the pay the entire processing fee within 30
facts in your answer including, but not days of the date you receive the deci-
limited to, contracts and any affidavits sion.
that may be necessary to support par- (3) BSEE’s decision granting or deny-
ticular factual allegations; and ing a fee waiver or reduction is final
(4) Provide a copy of your answer to for the Department.

all parties named in the complaint in- [76 FR 64462, Oct. 18, 2011, as amended at 81
cluding the complainant. If you make a FR 36154, June 6, 2016]
331
§ 291.110 30 CFR Ch. II (7–1–18 Edition)
§ 291.110 Who may BSEE require to ment with the confidential information
produce information? redacted, BSEE may assume that there
(a) BSEE may require any lessee, op- is no objection to public disclosure of
erator of a lease or unit, shipper, the document in its entirety.
grantee, or transporter to provide in- (b) In making data and information
formation that BSEE believes is nec- you submit available to the public,
essary to make a decision on whether BSEE will not disclose documents ex-
open access or nondiscriminatory ac- empt from disclosure under the Free-
cess was denied. dom of Information Act (5 U.S.C. 552)
(b) If you are a party and fail to pro- and will follow the procedures set forth
vide information BSEE requires under in the implementing regulations at 43
paragraph (a) of this section, BSEE CFR part 2 to give submitters an op-
may: portunity to object to disclosure.
(1) Assess civil penalties under 30 (c) BSEE retains the right to make
CFR part 250, subpart N; the determination with regard to any
(2) Dismiss your complaint or con- claim of confidentiality. BSEE will no-
sider your answer incomplete; or tify you of its decision to deny a claim,
(3) Presume the required information in whole or in part, and, to the extent
is adverse to you on the factual issues permitted by law, will give you an op-
to which the information is relevant. portunity to respond at least 10 days
(c) If you are not a party to a com- before its public disclosure.
plaint and fail to provide information
BSEE requires under paragraph (a) of § 291.112 What process will BSEE fol-
this section, BSEE may assess civil low in rendering a decision on
penalties under 30 CFR part 250, sub- whether a grantee or transporter
has provided open and nondiscrim-
part N. inatory access?
§ 291.111 How does BSEE treat the BSEE will begin processing a com-
confidential information I provide? plaint upon receipt of a processing fee
(a) Any person who provides docu- or granting a waiver of the fee. The
ments under this part in response to a BSEE Director will review the com-
request by BSEE to inform a decision plaint, answer, and other information,
on whether open access or nondiscrim- and will serve all parties with a writ-
inatory access was denied may claim ten decision that:
that some or all of the information (a) Makes findings of fact and conclu-
contained in a particular document is sions of law; and
confidential. If you claim confidential (b) Renders a decision determining
treatment, then when you provide the whether the complainant has been de-
document to BSEE you must: nied open and nondiscriminatory ac-
(1) Provide a complete unredacted cess.
copy of the document and indicate on
that copy that you are making a re- § 291.113 What actions may BSEE take
quest for confidential treatment for to remedy denial of open and non-
some or all of the information in the discriminatory access?
document. If the BSEE Director’s decision under
(2) Provide a statement specifying § 291.112 determines that the grantee or
the specific statutory justification for transporter has not provided open ac-
nondisclosure of the information for cess or nondiscriminatory access, then
which you claim confidential treat- the decision will describe the actions
ment. General claims of confidentiality BSEE will take to require the grantee
are not sufficient. You must furnish or transporter to remedy the denial of
sufficient information for BSEE to open access or nondiscriminatory ac-
make an informed decision on the re- cess. The remedies BSEE would require
quest for confidential treatment. must be consistent with BSEE’s statu-
(3) Provide a second copy of the docu- tory authority, regulations, and any
ment from which you have redacted limits thereon due to Congressional
the information for which you wish to delegations to other agencies. Actions
claim confidential treatment. If you do BSEE may take include, but are not
not submit a second copy of the docu- limited to:
332
(a) Ordering grantees and trans- (d) Initiating a proceeding to forfeit

porters to provide open and non- the right-of-way grant under 43 U.S.C.
discriminatory access to the complain- 1334(e).
ant;
(b) Assessing civil penalties of up to § 291.114 How do I appeal to the IBLA?
$10,000 per day under 30 CFR part 250, Any party, except as provided in
subpart N, for failure to comply with a § 291.115(b), adversely affected by a de-
BSEE order to provide open access or cision of the BSEE Director under this
nondiscriminatory access. Penalties part may appeal to the Interior Board
will begin to accrue 60 days after the of Land Appeals (IBLA) under the pro-
grantee or transporter receives the cedures in 43 CFR part 4, subpart E.
order to provide open and nondiscrim- § 291.115 How do I exhaust administra-
inatory access if it has not provided tive remedies?
such access by that time. However, if
(a) If the BSEE Director issues a de-
BSEE determines that requiring the
cision under this part but does not ex-
construction of facilities would be an pressly make the decision effective
appropriate remedy under the OCSLA, upon issuance, you must appeal the de-
penalties will begin to accrue 10 days cision to the IBLA under 43 CFR part 4
after conclusion of diligent construc- to exhaust administrative remedies.
tion of needed facilities or 60 days after Such decision will not be effective dur-
the grantee or transporter receives the ing the time in which a person ad-
order to provide open and nondiscrim- versely affected by the BSEE Direc-
inatory access, whichever is later, if it tor’s decision may file a notice of ap-
has not provided such access by that peal with the IBLA, and the timely fil-
time; ing of a notice of appeal will suspend
(c) Requesting the Attorney General the effect of the decision pending the
to institute a civil action in the appro- decision on appeal.
priate United States District Court (b) This section does not apply if a
under 43 U.S.C. 1350(a) for a temporary decision was made effective by:
restraining order, injunction, or other (1) The BSEE Director; or
appropriate remedy to enforce the open (2) The Assistant Secretary for Land
and nondiscriminatory access require- and Minerals Management.
ments of 43 U.S.C. 1334(e) and (f)(1)(A);
or PARTS 292–299 [RESERVED]
333
CHAPTER IV—GEOLOGICAL SURVEY,
DEPARTMENT OF THE INTERIOR
Part Page
400 [Reserved]
401 State Water Research Institute Program ............... 337
402 Water-Resources Research Program and the Water-
Resources Technology Development Program ..... 342
335
PART 400 [RESERVED] under the Act, are the responsibility of
the Secretary.
PART 401—STATE WATER RESEARCH § 401.3 Definitions.
INSTITUTE PROGRAM
Act means the Water Resources Re-
Subpart A—General search Act of 1984 (Pub. L. 98–242, 98
Stat. 97).
Sec. Fiscal year means a 12-month period
401.1 Purpose. ending on September 30.
401.2 Delegation of authority.
401.3 Definitions.
401.4 Information collection. USGS or a designee.
401.5 [Reserved] Grant means the funds made avail-
able to an institute in a particular fis-
Subpart B—Designation of Institutes; cal year pursuant to section 104 of the
Institute Programs Act and the regulations in this chap-
ter.
401.6 Designation of institutes.
401.7 Programs of institutes. Grantee means the college or univer-
401.8–401.10 [Reserved] sity at which an institute is estab-
lished.
Subpart C—Application and Management Granting agency means the USGS.
Procedures Institute means a water resources re-
401.11 Applications for grants.
search institute, center, or equivalent
401.12 Program management. agency established in accordance with
401.13–401.18 [Reserved] Title I of the Act.
Region means any grouping of two or
Subpart D—Reporting more institutes mutually chosen by
themselves to reflect a commonality of
401.19 Reporting procedures.
401.20–401.25 [Reserved]
water-resources problems.
Scientists means individuals engaged
Subpart E—Evaluation in any professional discipline, includ-
ing the life, physical or social sciences,
401.26 Evaluation of institutes. and engineers.
AUTHORITY: 42 U.S.C. 10303. Secretary means the Secretary of the
SOURCE: 50 FR 23114, May 31, 1985, unless Interior or a designee.
otherwise noted. State means each of the 50 States, the
Commonwealth of Puerto Rico, the
Subpart A—General Virgin Islands, the District of Colum-
bia, Guam, American Samoa, the Com-
§ 401.1 Purpose. monwealth of the Mariana Islands, and
the Federated States of Micronesia.
The regulations in this part are
issued pursuant to title I of the Water [50 FR 23114, May 31, 1985, as amended at 58
Research Act of 1984 (Pub. L. 98–242, 98 FR 27204, May 7, 1993]
Stat. 97) which authorizes appropria-
tions to, and confers authority upon, § 401.4 Information collection.
the Secretary of the Interior to pro- (a) The information collection re-
mote a national program of water-requirements contained in sections 401.11
sources research. and 401.19 have been approved by the
Office of Management and Budget
§ 401.2 Delegation of authority. under 44 U.S.C. 3501 et seq. and assigned
The State Water Research Institute clearance number 1028–0044. The infor-
Program, as authorized by section 104 mation will be used to support water
of the Act, has been established as a related research and provide perform-
component of the U.S. Geological Sur- ance reports on accomplishments
vey (USGS). Secretary of the Interior achieved under Pub. L. 98–242, 98 Stat.
has delegated to the Director of the 97 (42 U.S.C. 10303). This information
USGS authority to take the actions allows the agency to determine compli-
and make the determinations that, ance with the objectives and criteria of
337
§ 401.5 30 CFR Ch. IV (7–1–18 Edition)
the grant programs. Response is man- (b) The certification of designation

datory in accordance with 30 CFR 401.11 made pursuant to paragraph (a) of this
and 401.19. section shall originate following the
(b) Public reporting burden for the issuance of these regulations, be signed
collection of information is estimated by the highest ranking officer of the
to average 84 hours per response, in- college or university at which the in-
cluding the time for reviewing instruc- stitute is established and be submitted
tions, searching existing data sources, to the Director within 90 days of the ef-
gathering and maintaining the data fective date of these regulations. It
needed, and completing and reviewing shall be accompanied either by the evi-
the collection of information. Send dence of establishment under the provi-
comments regarding this burden esti- sions of 30 CFR part 401 or by new evi-
mate, or any other suggestions for re- dence of establishment made pursuant
ducing the burden, to Paperwork Man- to these regulations.
agement Officer, U.S. Geological Sur- (c) Any institute not previously es-
vey, Paperwork Management Section tablished under the provisions of the
MS 208, Reston, Virginia 22092 and the Water Resources Act of 1964 (Pub. L.
Office of Management and Budget, Pa- 88–379, 78 Stat. 331) or the Water Re-
perwork Reduction Project (1028–0044), search and Development Act of 1978
Washington, DC 20503. (Pub. L. 95–467, 92 Stat. 1305) shall also,
in addition to the annual program ap-
[58 FR 27204, May 7, 1993] plication specified in § 401.11 of this
chapter, submit to the Director the fol-
§ 401.5 [Reserved]
lowing information:
(1) Evidence of the appointment by
Subpart B—Designation of the governing authority of the college
Institutes; Institute Programs or university of an officer to receive
and account for all funds paid under
§ 401.6 Designation of institutes. the provisions of the Act and to make
(a) As a condition of recognition as annual reports to the granting agency
an established institute under the pro- on work accomplished; and
visions of this chapter, each institute (2) A management plan for meeting
shall provide to the Director written the requirements of the evaluation
evidence that it conforms to the re- mandated by § 401.26.
quirements of subsection 104(a) of the [50 FR 23114, May 31, 1985, as amended at 58
Act, in that: FR 27204, May 7, 1993]
(1) The institute is established at the
college or university in the State that § 401.7 Programs of institutes.
was established in accordance with the (a) Release of grant funds to partici-
Act of July 21, 1862 (12 Stat. 503; 7 pating institutes is conditioned on the
U.S.C. 301ff), i.e., a ‘‘land-grant’’ insti- ability of each receiving institute to
tution, or; plan, conduct, or otherwise arrange for:
(2) If established at some other insti- (1) Competent research, investiga-
tution, the institute is at a college or tions, and experiments of either a basic
university that has been designated by or practical nature, or both, in relation
act of the legislature for the purposes to water resources;
of the Act, or; (2) Promotion of the dissemination
(3) If there is more than one ‘‘land- and application of the results of these
grant’’ institution in the State, and no efforts; and
designation has been made according (3) Assistance in the training of sci-
to paragraph (a)(2) of this section, the entists in relevant fields of endeavor to
institute has been established at the water resources through the research,
one such institution designated by the investigations, and experiments.
Governor of the State to participate in (b) Such research, investigations, ex-
the program, or; periments and training may include:
(4) The institute has been designated (1) Aspects of the hydrologic cycle;
as an interstate or regional institute (2) Supply and demand;

by two or more cooperating States as (3) Demineralization of saline and
provided in the Act. other impaired waters;
338
Geological Survey, Interior § 401.11
(4) Conservation and best use of shall be made available in the suc-
available supplies of water and meth- ceeding fiscal year to support competi-
ods of increasing such supplies; tively selected research projects under
(5) Water reuse; the terms of section 104(g) of the Act.
(6) Depletion and degradation of Selection and approval of such projects
ground-water supplies; shall be based on criteria to be deter-
(7) Improvements in the productivity mined by the Director. Announcement
of water when used for agricultural, of such criteria shall be made by notice
municipal, and commercial purposes; in the FEDERAL REGISTER. The granting
(8) The economic, legal, engineering, agency may retain an amount up to 15
social, recreational, biological, geo- percent of the total appropriation for
graphical, ecological, or other aspects administrative costs.
of water problems; (b) The granting agency will annu-
(9) Scientific information dissemina- ally make available to qualified insti-
tion activities, including identifying, tutes instructions for the submittal of
assembling, and interpreting the re- applications for grants. The instruc-
sults of scientific research on water re- tions will include information perti-
sources problems, and ; nent only to a single fiscal year, such
(10) Providing means for improved as the closing date for applications and
communication of research results, the amount of funds initially available
having due regard for the varying con- to each institute. They also will in-
ditions and needs of the respective clude notification of the provisions and
States and regions. assurances necessary to ensure that ad-
(c) An institute shall cooperate close- ministration of the grant will be con-
ly with other colleges and universities ducted in compliance with this chapter
in the State that have demonstrated and other Federal laws and regulations
capabilities for research, information applicable to grants to institutions of
dissemination and graduate training in higher learning.
the development of its program. For (c) In making its application for
purposes of financial management, refunds to which it is entitled under the
porting and other research program Act, each institute shall use and follow
management and administration ac- the standard form for Federal assist-
tivities, the institutes shall be respon- ance (SF 424, Federal Assistance). No
sible for performance of the activities preapplication is required. The insti-
of other participating institutions. tute shall include in section IV of
(d) Each institute shall cooperate Standard Form 424 evidence that its
closely with other institutes and other application was:
research organizations in the region to (1) Developed in close consultation
increase the effectiveness of the insti- and collaboration with senior per-
tutes, to coordinate their activities, sonnel of the State’s department of
and to avoid undue duplication of ef- water resources or similar agencies,
fort. other leading water resources officials
within the State, and interested mem-
§§ 401.8–401.10 [Reserved] bers of the public;
(2) Coordinated with other institutes
Subpart C—Application and in the region for the purposes of avoid-
Management Procedures ing duplication of effort and encour-
aging regional cooperation in research
§ 401.11 Applications for grants. areas of water management, develop-
(a) Subject to the availability of ap- ment, and conservation that have a re-
propriated funds, but not to exceed a gional or national character; and
total of $10 million, an equal amount of (3) Reviewed for technical merit of
dollars will be available to each quali- its research components by qualified
fied institute in each fiscal year to as- scientists.
sist it in carrying out the purposes of (d) Each application shall further in-
the Act. If the full amount of the ap- clude:
propriated funds is not obligated by the (1) A financial plan relating expendi-
close of the fiscal year for which they tures to scheduled activity and rate of
were appropriated, the remaining funds effort to be expended and indicating
339
§ 401.12 30 CFR Ch. IV (7–1–18 Edition)
the times at which there will be need provisions of its instructions and this
for specified amounts of Federal funds; chapter and within no more than 90
and days request any revisions and addi-
(2) A description of the institute’s ar- tions necessary for such consistency.
rangements for development, adminis-
[50 FR 23114, May 31, 1985, as amended at 58
tration, and technical oversight of the FR 27204, May 7, 1993]
research program.
(e) Each annual program application § 401.12 Program management.
is to include separately identifiable
(a) Upon approval of each fiscal
proposals for conduct of research to
year’s proposed program, the granting
meet the needs of the State and region.
agency will transmit to the grantee an
Such proposals must set forth for each
award which will incorporate the appli-
project:
cation and assurances.
(1) The nature, scope and objectives
(b) The grant is effective and con-
of the project to be undertaken;
stitutes an obligation of Federal funds
(2) Its importance to the State, re-
in the amount and for the purpose stat-
gion, or Nation; its relation to other
ed in the award document at the time
known research projects already com-
of the Director’s signature.
pleted or in progress; and the antici-
(c)(1) Acceptance of the award docu-
pated applicability of the research re-
ment certifies the grantee’s assurance
sults;
that the grant will be administered in
(3) The period during which it will be
compliance with OMB regulations,
pursued;
policies, guidelines, and requirements
(4) The names and qualifications of
as described in:
the senior professional personnel who
(i) Circular No. A–21, revised, Cost
will direct and conduct the project;
Principles of Educational Institutions;
(5) Its estimated costs, with a break-
(ii) Memorandum No. M–92–01, Co-
down of the costs per year; and
ordination of Water Resources Infor-
(6) The extent of which it will provide
mation;
opportunity for the training of sci-
(iii) Circular No. A–88, revised, Indi-
entists.
rect Cost Rates, Audit and Audit Fol-
(f) Each program application shall
low-up at Educational Institutions;
contain a plan for disseminating infor-
(iv) Circular No. A–110, Uniform Ad-
mation on the results of research and
ministrative Requirements for Grants
promoting their application. Plans
and Agreements with Institutions of
which require the use of grant funds
Higher Education, Hospitals and other
shall contain:
Nonprofit Organizations; and
(1) Definition of the topics for dis-
(v) Circular No. A–124, Patents—
semination;
Small Business Firms and Nonprofit
(2) Identification of the target audi-
Organizations.
ences for dissemination;
(2) Copies of the documents listed in
(3) Strategies for accomplishing the
paragraph (c)(1) of this section shall be
dissemination;
available from the granting agency.
(4) Duties and qualifications of the
personnel to be involved; [50 FR 23114, May 31, 1985, as amended at 58
(5) Estimated costs of each identifi- FR 27204, May 7, 1993]
able element of the plan; and
(6) Identification of cooperating enti- §§ 401.13–401.18 [Reserved]
ties.
(g) The application shall provide as- Subpart D—Reporting
surance that non-Federal dollars will
be available to share the costs of the § 401.19 Reporting procedures.
proposed program. The Federal funds (a) The institutes are encouraged to
are to be matched on a basis of no less publish, as technical reports or in the
than two non-Federal dollars for each professional literature, the findings,
Federal dollar, unless this matching re- results, and conclusions relating to
quirement has been waived. separately identifiable research

(h) The granting agency will evaluate projects undertaken pursuant to the
the proposals for consistency with the Act.
340
(b) Each institute shall submit to the mining whether the national interest
granting agency, by a date to be speci- warrants its continued support under
fied in the award document, an annual the provisions of the Act. That deter-
program report which provides: mination shall be based on:
(1) A statement concerning the rela- (1) The quality and relevance of its
tionship of the institute’s program to water resources research as funded
the water problems and issues of the under the Act;
State; (2) Its effectiveness as an institution
(2) A synopsis of the objectives, for planning, conducting, or arranging
methods, and conclusions of each for research;
project completed within the period (3) Its demonstrated performance in
covered; making research results available to
(3) A progress report on each project users in the State and elsewhere; and
continuing into the subsequent fiscal (4) Its demonstrated record in pro-
year; viding for the training of scientists
(4) Citations of all reports, papers, through student involvement in its re-
publications or other communicable search program.
products resulting from each project (b) An evaluation team, selected by
completed or in progress; the granting agency on the basis of the
(5) A description of all activities un- members’ knowledge of water research
dertaken for the purpose of promoting and administration, shall evaluate
the application of research results; each institute, and may with the con-
(6) A description of cooperative ar- currence of the granting agency, visit
rangements with other educational in- such institutes as it considers nec-
stitutions, State agencies, and others. essary. The team is to include at least
(c) One manuscript of reproducible one individual from each of the fol-
quality and two copies of the annual lowing categories:
program report shall be furnished to (1) Employees of the Department of
the granting agency. One copy of a the Interior;
complete report on the objectives, (2) University faculty or other profes-
methods, and conclusions of each re- sionals with relevant experience in the
search project shall be maintained by conduct of water resources research;
the institute and open to inspection. (3) Former directors of water re-
(d) Appropriate acknowledgment search institutes; and
shall be given by institutes to the (4) University faculty or other profes-
granting agency’s participation in fi- sionals with relevant experience in in-
nancing activities carried out under formation transfer.
provisions of the Act. Such acknowl- (c) The granting agency may request
edgment shall be included in all re- recommendations for team selections
ports, publications, news releases, and from the National Research Council/
other information media developed by National Academy of Sciences and
institutes and others to publicize, de- from other organizations whose mem-
scribe, or report upon accomplishments bers include the types of individuals
and activities of the program. cited in paragraph (b) of this section.
(e) An original and two copies of the (d) The granting agency shall, as an
final ‘‘Financial Status Report,’’ SF administrative cost, provide the funds
269, shall be furnished to the granting for travel and per diem expense of the
agency within 90 days of completion of team members, within the maximum
the grant period. limits allowable under Federal travel
regulations (41 CFR subtitle F).
§§ 401.20–401.25 [Reserved] (e) The granting agency has the right
to select dates for evaluation visits,
Subpart E—Evaluation and notice of the team’s visit shall be
provided to the institute being evalu-
§ 401.26 Evaluation of institutes. ated at least 60 days in advance.
(a) Within 2 years of the date of its (f) It shall be the responsibility of
certification according to the provi- each institute to provide such docu-

sions of § 401.6, each institute will be mentation of its activities and accom-
evaluated for the purpose of deter- plishments as the granting agency and
341
Pt. 402 30 CFR Ch. IV (7–1–18 Edition)
evaluation team may reasonably re- Subpart A—General

quest. The request for this documenta-
tion shall be made at least 60 days § 402.1 Purpose.
prior to the due date of its receipt. The regulations in this part are
(g) The team shall, within 90 days issued pursuant to title I of the Water
after completion of its evaluation, sub- Resources Research Act of 1984 (Pub. L.
mit a written report of its findings to 98–242, 98 Stat. 97), which authorizes ap-
the granting agency for transmittal to propriations to, and confers authority
the institute. If an institute is found to upon, the Secretary of the Interior to
have deficiencies in meeting the objec- promote national programs of water-
tives of the Act, it shall be allowed 1 resources research and technology de-
year to correct them and to report velopment.
such action to the granting agency.
The decision as to the institute’s eligi- § 402.2 Delegation of authority.
bility to receive further funding will The Water-Resources Research Pro-
rest with the granting agency. gram and the Water-Resources Tech-
(h) After the initial evaluation, each nology Development Program, as au-
institute shall be reevaluated at least thorized by sections 105 and 106 of the
every 5 years. Act (42 U.S.C. 10304 and 10305), have
[58 FR 27204, May 7, 1993] been established as components of the
USGS. The Secretary of the Interior
PART 402—WATER-RESOURCES RE- has delegated to the Director of the
USGS authority to take actions and
SEARCH PROGRAM AND THE make the determinations that, under
WATER-RESOURCES TECH- the Act, are the responsibility of the
NOLOGY DEVELOPMENT PRO- Secretary.
GRAM
§ 402.3 Definitions.
Subpart A—General (a) Grant is used in these rules as a
Sec. generic term for a Federal assistance
402.1 Purpose. award, including project grants and co-
402.2 Delegation of authority. operative agreements.
402.3 Definitions. (b) Act means the Water Resources
402.4 Information collection. Research Act of 1984 (Pub. L. 98–242, 98
402.5 [Reserved] Stat. 97).
(c) Educational institution means any
Subpart B—Description of Water-Resources
educational institution—privately and/
Programs
or publicly owned.
402.6 Water-Resources Research Program. (d) Dollar-for-dollar matching grant
402.7 Water-Resources Technology Develop- means for each Federal dollar provided
ment Program. to support the projects, a non-Federal
402.8–402.9 [Reserved] dollar also must be provided to the
project.
Subpart C—Application, Evaluation, and
Management Procedures § 402.4 Information collection.
402.10 Research-project applications. The information-collection require-
402.11 Technology-development project ap- ments contained in sections 402.10,
plications. 402.11, and 402.15 have been approved by
402.12 Evaluation of applications for grants the OMB under 44 U.S.C. 3501 et seq. and
and contracts.
402.13 Program management.
assigned clearance number 1028–0046.
402.14 [Reserved] The application proposals being col-
lected will contain technical informa-
Subpart D—Reporting tion that will be used by the USGS as
a basis for selection and award of
402.15 Reporting procedures.
grants. The progress reports being col-
AUTHORITY: Secs. 105 and 106, Pub. L. 98– lected will contain a description of all
242, 98 Stat. 97 (42 U.S.C. 10304 and 10305). work accomplished and results
SOURCE: 51 FR 20963, June 10, 1986, unless achieved on each funded project and
otherwise noted. will enable the USGS to carry out its
342
oversight responsibilities and provide ditions and needs for the respective
dissemination of technical informa- States and regions.
tion.
§ 402.7 Water-Resources Technology
§ 402.5 [Reserved] Development Program.
(a) Subject to the availability of ap-
Subpart B—Description of Water- propriated funds, the Water-Resources
Resources Programs Technology Development Program will
provide funds in the form of grants or
§ 402.6 Water-Resources Research Pro- contracts to educational institutions,
gram. private firms, private foundations, in-
(a) Subject to the availability of ap- dividuals, and agencies of local or
propriated funds, the Water-Resources State governments for technology de-
Research Program will provide sup- velopment concerning any aspect of
port, in the form of a dollar-for-dollar water-related technology deemed to be
matching grant, to educational institu- of State, regional, and national impor-
tions, private foundations, private tance, including technology associated
firms, individuals, and agencies of local with improvement of waters of im-
or State governments for research con- paired quality and the operation of test
cerning any aspect of a water-resource facilities. Federal agencies are ex-
related problem deemed to be in the cluded from receiving grants or con-
national interest. Federal agencies are tracts. The types of technology-devel-
excluded from receiving matching opment to be undertaken under this
grants. Grants may be awarded on program shall include paragraphs 1
other than a dollar-for-dollar matching through 10 of § 402.6(b).
basis in cases where the USGS deter- (b) The USGS may establish any con-
mines that research on a high-priority dition for the matching of funds by the
subject is of a basic nature that other- recipient of any grant or cost-sharing
wise would not be undertaken. under a contract under the technology-
(b) The types of research to be under- development program which the USGS
taken under this program are listed considers to be in the best interest of
below, without indication of priority: the Nation.
(1) Aspects of the hydrologic cycle;
(2) Supply and demand for water; §§ 402.8–402.9 [Reserved]
(3) Demineralization of saline and
other impaired waters; Subpart C—Application, Evalua-
(4) Conservation and best use of tion, and Management Proce-
available supplies of water and meth- dures
ods of increasing such supplies;
(5) Water reuse; § 402.10 Research-project applications.
(6) Depletion and degradation of (a) Only those applications for grants
groundwater supplies; that are in response to and meet the
(7) Improvements in the productivity guidelines of specific USGS announce-
of water when used for agricultural, ments will be considered for funding
municipal, and commercial purposes; appropriated for this program.
and (b) The USGS program announce-
(8) The economic, legal, engineering, ments will identify priorities, match-
social, recreational, biological, geo- ing requirements, particular areas of
graphic, ecological, and other aspects interest, criteria for evaluation, OMB
of water problems. regulations as appropriate, assurances,
(9) Scientific information-dissemina- closing date, and proposal submittal
tion activities, including identifying, instructions. Program announcements
assembling, and interpreting the re- may also include criteria for high-pri-
sults of scientific and engineering re- ority subjects of a basic nature that
search on water-resources problems. may be funded on other than a dollar-
(10) Providing means for improved for-dollar basis. Program announce-

communications of research results, ments will be distributed to names on
having due regard for the varying con- the current USGS mailing list for the
343
§ 402.11 30 CFR Ch. IV (7–1–18 Edition)
Water-Resources Research Program an- ernment, the action must be regarded

nouncements, including new requests as a procurement contract. A competi-
received in response to published no- tive solicitation prepared in accord-
tices of upcoming program announce- ance with applicable acquisition regu-
ments. lations will be issued to interested par-
(c) Notification of the availability of ties. Notification of the availability of
the program announcement will be any contract solicitation will be pub-
published in the Commerce Business lished in the Commerce Business Daily,
Daily and/or FEDERAL REGISTER. unless waived in accordance with § 5.202
(d) The application for funds must be of the Federal Acquisition Regulation
signed by an individual or official au- (FAR). Contracts may be awarded
thorized to commit the applicant and without full and open competition only
it must contain: if justified in accordance with FAR
(1) A Standard Form 424 ‘‘Federal As- subpart 6.3.
sistance,’’ sections I and II completed
by applicant, used as the cover sheet § 402.12 Evaluation of applications for
for each proposal. grants and contracts.
(2) A project summary of no more (a) Grants. (1) Each grant application
than one typed, single-spaced page pro- will receive technical evaluations from
viding the following specific informa- Government and/or non-Government
tion: scientific or engineering personnel.
(i) Identification of the water or Utilizing the criteria for evaluation
water-related problems and the prob- identified in the applicable announce-
lem-solution approach; ment, each reviewer will assign a tech-
(ii) Identification of the proposed sci- nical score.
entific contribution of the problem so- (2) Grant applications with low tech-
lution; nical ratings will be screened out, and
(iii) Concise statement of the specific the remaining grant applications will
objectives of the project; be rank-ordered by review panels.
(iv) Identification of the approach to
(3) USGS program officials will com-
be used to accomplish the work; and
pile a single, consolidated rank-ordered
(v) Identification of potential users
list of the grant applications based on
of the proposed work.
technical scoring, program needs and
(3) Narrative information, as speci-
published priorities, and the available
fied in the published program an-
Federal funds.
nouncement, such as project title,
project objectives, background infor- (b) Contracts. Proposals for contract
mation, research tasks, methodology awards will be evaluated by a USGS
to conduct the research task, the rel- panel. Contracts will be awarded ac-
evancy of the proposed project to cording to procedures contained in the
water-resources problems, qualifica- FAR, the Department of the Interior
tions of the principal investigators and Acquisition Regulation, and in acquisi-
their organizations, and proposed budg- tion policy releases issued by the De-
et with supporting information suffi- partment and by the USGS.
cient to allow evaluation of costs.
§ 402.13 Program management.
§ 402.11 Technology-development (a) After the conclusion of negotia-
project applications. tions, the USGS will transmit a grant
(a) Grant awards will be used to sup- or contract-award document, as appro-
port those portions of the program for priate, setting forth the terms of the
which the principal purpose is other award.
than as described in § 402.11(b). Pro- (b) Grants. Recipients will be required
gram announcements and applications to execute funded projects in accord-
will be governed by the same proce- ance with OMB Circulars governing
dures provided in § 402.10. cost principles, administrative require-
(b) If it is determined that the prin- ments, and audit, as applicable to their
cipal purpose of a planned award (or organization type. In addition, OMB

awards) is to acquire goods or services Circular A–67, Coordination of Federal
for the direct benefit or use of the Gov- Activities in the Acquisition of Certain
344
Water Data, is applicable to awards copy shall be submitted to the USGS

under these programs. within 90 days after the expiration date
(c) Contracts. Administrative require- of the award and shall include a sum-
ments for performance of research con- mary of all work accomplished, results
tracts will be established in the con- achieved, conclusions, and rec-
tract clauses in conformance with ap- ommendations. The camera-ready copy
plicable procurement regulations and shall be prepared in a manner suitable
other interior or USGS acquisition pol- for reproduction by a photographic
icy documents. OMB Circular A–67 will
process. Format will be specified in the
also apply to some contract awards
terms and conditions of the award.
under this program.
(4) Final Report Abstract. A complete
§ 402.14 [Reserved] Water-Resources Scientific Informa-
tion Center Abstract Form 102 and Na-
Subpart D—Reporting tional Technical Information Service
Form 79 shall be submitted with the
§ 402.15 Reporting procedures. final report.
(a) Grantees or contractors will be (b) Grantees or contractors will be
required to submit the following tech- required to submit financial, adminis-
nical reports to the USGS address iden- trative, and closeout reports as identi-
tified under the terms and conditions fied under the terms of each award. Re-
of each award. porting requirements will conform to
(1) Quarterly Technical Progress Re- the procedures described in the Depart-
port. This report shall include a de- mental Manual of the Department of
scription of all work accomplished, re- the Interior at 505 DM 1–5.
sults achieved, and any changes that (c) Contracts for technology-develop-
affect the project’s scope of work, time
ment projects may also require deliv-
schedule, and personnel assignments.
ery of hardware items produced and/or
(2) Draft Technical Completion Report.
The draft report will be required for re- specifications, drawings, test results,
view prior to submission of the final or other data describing the funded
technical completion report. technology.
(3) Final Technical Completion Report.
The final report and a camera-ready PARTS 403–499 [RESERVED]
345
CHAPTER V—BUREAU OF OCEAN ENERGY
MANAGEMENT, DEPARTMENT OF THE INTERIOR
Part Page
550 Oil and gas and sulphur operations in the Outer

Continental Shelf ................................................. 350
551 Geological and geophysical (G&G) explorations of
the Outer Continental Shelf ................................. 415
552 Outer Continental Shelf (OCS) Oil and Gas Infor-
mation Program ................................................... 429
553 Oil spill financial responsibility for offshore facili-
ties ....................................................................... 434
556 Leasing of sulphur or oil and gas and bonding re-
quirements in the Outer Continental Shelf .......... 449
560 Outer Continental Shelf oil and gas leasing ............ 488
570 Nondiscrimination in the Outer Continental Shelf 496
580 Prospecting for minerals other than oil, gas, and
sulphur on the Outer Continental Shelf ............... 497
581 Leasing of minerals other than oil, gas, and sul-
phur in the Outer Continental Shelf .................... 509
582 Operations in the Outer Continental Shelf for min-
erals other than oil, gas, and sulphur .................. 522
583 Negotiated noncompetitive agreements for the use
of Outer Continental Shelf sand, gravel, and/or
shell resources ...................................................... 540
585 Renewable energy and alternate uses of existing
facilities on the Outer Continental Shelf ............. 546
590 Appeal procedures ................................................... 631

347
PARTS 500–519 [RESERVED]

349
PART 550—OIL AND GAS AND SUL- 550.147 Who is responsible for fulfilling
leasehold obligations?
PHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF RIGHT-OF-USE AND EASEMENT
550.160 When will BOEM grant me a right-
Subpart A—General of-use and easement, and what require-
ments must I meet?
550.161 What else must I submit with my ap-
Sec. plication?
550.101 Authority and applicability. 550.162 May I continue my right-of-use and
550.102 What does this part do? easement after the termination of any
550.103 Where can I find more information lease on which it is situated?
about the requirements in this part? 550.163 If I have a State lease, will BOEM
550.104 How may I appeal a decision made grant me a right-of-use and easement?
under BOEM regulations? 550.164 If I have a State lease, what condi-
550.105 Definitions. tions apply for a right-of-use and ease-
ment?
PERFORMANCE STANDARDS
550.165 If I have a State lease, what fees do
550.115 How do I determine well I have to pay for a right-of-use and ease-
producibility? ment?
550.116 How do I determine producibility if 550.166 If I have a State lease, what surety
my well is in the Gulf of Mexico? bond must I have for a right-of-use and
550.117 How does a determination of well easement?
producibility affect royalty status?
550.118 [Reserved] PRIMARY LEASE REQUIREMENTS, LEASE TERM
550.119 Will BOEM approve subsurface gas EXTENSIONS, AND LEASE CANCELLATIONS
storage?
550.181 When may the Secretary cancel my
550.120 What standards will BOEM use to
lease and when am I compensated for
regulate leases, rights-of-use and ease-
cancellation?
ment, and rights-of-way?
550.121 What must I do to protect health, 550.182 When may the Secretary cancel a
safety, property, and the environment? lease at the exploration stage?
550.122 What effect does subsurface storage 550.183 When may BOEM or the Secretary
have on the lease term? extend or cancel a lease at the develop-
550.123 Will BOEM allow gas storage on un- ment and production stage?
leased lands? 550.184 What is the amount of compensation
for lease cancellation?
FEES 550.185 When is there no compensation for a
lease cancellation?
550.125 Service fees.
550.126 Electronic payment instructions. INFORMATION AND REPORTING REQUIREMENTS
INSPECTION OF OPERATIONS 550.186 What reporting information and re-
550.130 [Reserved] port forms must I submit?
550.187–550.193 [Reserved]
DISQUALIFICATION 550.194 How must I protect archaeological
resources?
550.135 What will BOEM do if my operating 550.195 [Reserved]
performance is unacceptable?
550.196 Reimbursements for reproduction
550.136 How will BOEM determine if my op-
and processing costs.
erating performance is unacceptable?
550.197 Data and information to be made
SPECIAL TYPES OF APPROVALS available to the public or for limited in-
spection.
550.140 When will I receive an oral approval?
550.141 May I ever use alternate procedures REFERENCES
or equipment?
550.142 How do I receive approval for depar- 550.198 [Reserved]
tures? 550.199 Paperwork Reduction Act state-
550.143 How do I designate an operator? ments—information collection.
550.144 How do I designate a new operator
Subpart B—Plans and Information
when a designation of operator termi-

nates?
GENERAL INFORMATION
550.146 How do I designate an agent or a
local agent? 550.200 Definitions.
350
Ocean Energy Management, Interior Pt. 550
550.201 What plans and information must I 550.226 What Coastal Zone Management Act
submit before I conduct any activities on (CZMA) information must accompany
my lease or unit? the EP?
550.202 What criteria must the Exploration 550.227 What environmental impact analysis
Plan (EP), Development and Production (EIA) information must accompany the
Plan (DPP), or Development Operations EP?
Coordination Document (DOCD) meet? 550.228 What administrative information
550.203 Where can wells be located under an must accompany the EP?
EP, DPP, or DOCD?
550.204 When must I submit my IOP for pro- REVIEW AND DECISION PROCESS FOR THE EP
posed Arctic exploratory drilling oper- 550.231 After receiving the EP, what will
ations and what must the IOP include? BOEM do?
550.205 [Reserved] 550.232 What actions will BOEM take after
550.206 How do I submit the IOP, EP, DPP, the EP is deemed submitted?
or DOCD? 550.233 What decisions will BOEM make on
the EP and within what timeframe?
ANCILLARY ACTIVITIES
550.234 How do I submit a modified EP or re-
550.207 What ancillary activities may I con- submit a disapproved EP, and when will
duct? BOEM make a decision?
550.208 If I conduct ancillary activities, 550.235 If a State objects to the EP’s coastal
what notices must I provide? zone consistency certification, what can
550.209 What is the BOEM review process for I do?
the notice?
550.210 If I conduct ancillary activities, CONTENT OF DEVELOPMENT AND PRODUCTION
what reporting and data/information re- PLANS (DPP) AND DEVELOPMENT OPER-
tention requirements must I satisfy? ATIONS COORDINATION DOCUMENTS (DOCD)
550.241 What must the DPP or DOCD in-

CONTENTS OF EXPLORATION PLANS (EP)
clude?
550.211 What must the EP include? 550.242 What information must accompany
550.212 What information must accompany the DPP or DOCD?
the EP? 550.243 What general information must ac-
550.213 What general information must accompany the DPP or DOCD?
company the EP? 550.244 What geological and geophysical
550.214 What geological and geophysical (G&G) information must accompany the
(G&G) information must accompany the DPP or DOCD?
EP? 550.245 What hydrogen sulfide (H2S) infor-
550.215 What hydrogen sulfide (H2S) information must accompany the DPP or
mation must accompany the EP? DOCD?
550.216 What biological, physical, and socio- 550.246 What mineral resource conservation
economic information must accompany information must accompany the DPP or
the EP? DOCD?
550.217 What solid and liquid wastes and dis- 550.247 What biological, physical, and socio-
charges information and cooling water economic information must accompany
intake information must accompany the the DPP or DOCD?
EP? 550.248 What solid and liquid wastes and dis-
550.218 What air emissions information charges information and cooling water
must accompany the EP? intake information must accompany the
550.219 What oil and hazardous substance DPP or DOCD?
spills information must accompany the 550.249 What air emissions information
EP? must accompany the DPP or DOCD?
550.220 If I propose activities in the Alaska 550.250 What oil and hazardous substance
OCS Region, what planning information spills information must accompany the
must accompany the EP? DPP or DOCD?
550.221 What environmental monitoring in- 550.251 If I propose activities in the Alaska
formation must accompany the EP? OCS Region, what planning information
550.222 What lease stipulations information must accompany the DPP?
must accompany the EP? 550.252 What environmental monitoring in-
550.223 What mitigation measures informa- formation must accompany the DPP or
tion must accompany the EP? DOCD?
550.224 What information on support ves- 550.253 What lease stipulations information
sels, offshore vehicles, and aircraft you must accompany the DPP or DOCD?
will use must accompany the EP? 550.254 What mitigation measures informa-
550.225 What information on the onshore tion must accompany the DPP or DOCD?
support facilities you will use must ac- 550.255 What decommissioning information
company the EP? must accompany the DPP or DOCD?
351
Pt. 550 30 CFR Ch. V (7–1–18 Edition)
550.256 What related facilities and oper- 550.299 What operations require approval of
ations information must accompany the the CID?
DPP or DOCD?
550.257 What information on the support Subpart C—Pollution Prevention and
vessels, offshore vehicles, and aircraft Control
you will use must accompany the DPP or
DOCD? 550.300–550.301 [Reserved]
550.258 What information on the onshore 550.302 Definitions concerning air quality.
support facilities you will use must ac- 550.303 Facilities described in a new or re-
company the DPP or DOCD? vised Exploration Plan or Development
550.259 What sulphur operations informa- and Production Plan.
tion must accompany the DPP or DOCD? 550.304 Existing facilities.
550.260 What Coastal Zone Management Act
(CZMA) information must accompany Subpart D—Leasing Maps and Diagrams
the DPP or DOCD?
550.261 What environmental impact analysis 550.400 Leasing maps and diagrams.
(EIA) information must accompany the
DPP or DOCD? Subparts E–I [Reserved]
550.262 What administrative information
must accompany the DPP or DOCD? Subpart J—Pipelines and Pipeline Rights of
Way
REVIEW AND DECISION PROCESS FOR THE DPP
OR DOCD 550.1011 Bond requirements for pipeline
550.266 After receiving the DPP or DOCD, right-of-way holders.
what will BOEM do?
550.267 What actions will BOEM take after Subpart K—Oil and Gas Production
the DPP or DOCD is deemed submitted? Requirements
550.268 How does BOEM respond to rec-
ommendations? WELL TESTS AND SURVEYS
550.269 How will BOEM evaluate the envi- 550.1153 When must I conduct a static
ronmental impacts of the DPP or DOCD? bottomhole pressure survey?
550.270 What decisions will BOEM make on
the DPP or DOCD and within what time- CLASSIFYING RESERVOIRS
frame?
550.1154 How do I determine if my reservoir
550.271 For what reasons will BOEM dis-
is sensitive?
approve the DPP or DOCD?
550.1155 What information must I submit for
550.272 If a State objects to the DPP’s or
sensitive reservoirs?
DOCD’s coastal zone consistency certifi-
cation, what can I do? OTHER REQUIREMENTS
550.273 How do I submit a modified DPP or
DOCD or resubmit a disapproved DPP or 550.1165 What must I do for enhanced recov-
DOCD? ery operations?
550.1166 What additional reporting is re-
POST-APPROVAL REQUIREMENTS FOR THE EP, quired for developments in the Alaska
DPP, AND DOCD OCS Region?
550.280 How must I conduct activities under 550.1167 What information must I submit
the approved EP, DPP, or DOCD? with forms and for approvals?
550.281 What must I do to conduct activities
under the approved EP, DPP, or DOCD? Subparts L–M [Reserved]
550.282 Do I have to conduct post-approval
monitoring? Subpart N—Outer Continental Shelf Civil
550.283 When must I revise or supplement Penalties
the approved EP, DPP, or DOCD?
550.284 How will BOEM require revisions to OUTER CONTINENTAL SHELF LANDS ACT CIVIL
the approved EP, DPP, or DOCD? PENALTIES
550.285 How do I submit revised and supple- 550.1400 How does BOEM begin the civil pen-
mental EPs, DPPs, and DOCDs? alty process?
550.1401 Index table.
CONSERVATION INFORMATION DOCUMENTS 550.1402 Definitions.
(CID) 550.1403 What is the maximum civil pen-
550.296 When and how must I submit a CID alty?
or a revision to a CID? 550.1404 Which violations will BOEM review
550.297 What information must a CID con- for potential civil penalties?
tain? 550.1405 When is a case file developed?
550.298 How long will BOEM take to evalu- 550.1406 When will BOEM notify me and pro-
ate and make a decision on the CID? vide penalty information?
352
Ocean Energy Management, Interior § 550.101
550.1407 How do I respond to the letter of CRIMINAL PENALTIES
notification?
550.1480 May the United States criminally
550.1408 When will I be notified of the Re- prosecute me for violations under Fed-
viewing Officer’s decision? eral oil and gas leases?
550.1409 What are my appeal rights?
BONDING REQUIREMENTS
FEDERAL OIL AND GAS ROYALTY MANAGEMENT
550.1490 What standards must my BOEM-
ACT CIVIL PENALTIES DEFINITIONS
specified surety instrument meet?
550.1450 What definitions apply to this sub- 550.1491 How will BOEM determine the
part? amount of my bond or other surety in-
strument?
PENALTIES AFTER A PERIOD TO CORRECT
FINANCIAL SOLVENCY REQUIREMENTS
550.1451 What may BOEM do if I violate a
550.1495 How do I demonstrate financial sol-
statute, regulation, order, or lease term
vency?
relating to a Federal oil and gas lease?
550.1496 How will BOEM determine if I am
550.1452 What if I correct the violation? financially solvent?
550.1453 What if I do not correct the viola- 550.1497 When will BOEM monitor my finan-
tion? cial solvency?
550.1454 How may I request a hearing on the
record on a Notice of Noncompliance? Subparts O–S [Reserved]
550.1455 Does my request for a hearing on
the record affect the penalties? AUTHORITY: 30 U.S.C. 1751; 31 U.S.C. 9701; 43
550.1456 May I request a hearing on the U.S.C. 1334.
record regarding the amount of a civil
SOURCE: 76 FR 64623, Oct. 18, 2011, unless
penalty if I did not request a hearing on
otherwise noted.
the Notice of Noncompliance?
PENALTIES WITHOUT A PERIOD TO CORRECT Subpart A—General

550.1460 May I be subject to penalties with-
out prior notice and an opportunity to
correct? § 550.101 Authority and applicability.
550.1461 How will BOEM inform me of viola-
tions without a period to correct? The Secretary of the Interior (Sec-
550.1462 How may I request a hearing on the retary) authorized the Bureau of Ocean
record on a Notice of Noncompliance re- Energy Management (BOEM) to regu-
garding violations without a period to late oil, gas, and sulphur exploration,
correct? development, and production oper-
550.1463 Does my request for a hearing on ations on the Outer Continental Shelf
the record affect the penalties? (OCS). Under the Secretary’s author-
550.1464 May I request a hearing on the ity, the Director requires that all oper-
record regarding the amount of a civil ations:
penalty if I did not request a hearing on (a) Be conducted according to the
the Notice of Noncompliance? OCS Lands Act (OCSLA), the regula-
GENERAL PROVISIONS tions in this part, BOEM orders, the
lease or right-of-way, and other appli-
550.1470 How does BOEM decide what the cable laws, regulations, and amend-
amount of the penalty should be? ments; and
550.1471 Does the penalty affect whether I (b) Conform to sound conservation
owe interest? practice to preserve, protect, and de-
550.1472 How will the Office of Hearings and
velop mineral resources of the OCS to:
Appeals conduct the hearing on the
(1) Make resources available to meet
record?
550.1473 How may I appeal the Administra-
the Nation’s energy needs;
tive Law Judge’s decision? (2) Balance orderly energy resource
550.1474 May I seek judicial review of the development with protection of the
decision of the Interior Board of Land human, marine, and coastal environ-
Appeals? ments;
550.1475 When must I pay the penalty? (3) Ensure the public receives a fair
and equitable return on the resources
550.1476 Can BOEM reduce my penalty once

it is assessed? of the OCS;
550.1477 How may BOEM collect the pen- (4) Preserve and maintain free enter-
alty? prise competition; and
353
§ 550.102 30 CFR Ch. V (7–1–18 Edition)
(5) Minimize or eliminate conflicts ration, development, and production

between the exploration, development, operations on the OCS. When you con-
and production of oil and natural gas duct operations on the OCS, you must
and the recovery of other resources. submit requests, applications, and no-
tices, or provide supplemental informa-
§ 550.102 What does this part do? tion for BOEM approval.
(a) 30 CFR part 550 contains the regu- (b) The following table of general ref-
lations of the BOEM Offshore program erences shows where to look for infor-
that govern oil, gas, and sulphur explo- mation about these processes.
TABLE—WHERE TO FIND INFORMATION FOR CONDUCTING OPERATIONS
For information about Refer to
(1) Applications for permit to drill ................................................ 30 CFR 250, subpart D.

(2) Development and Production Plans (DPP) ........................... 30 CFR 550, subpart B.
(3) Downhole commingling .......................................................... 30 CFR 250, subpart K.
(4) Exploration Plans (EP) ........................................................... 30 CFR 550, subpart B.
(5) Flaring .................................................................................... 30 CFR 250, subpart K.
(6) Gas measurement ................................................................. 30 CFR 250, subpart L.
(7) Off-lease geological and geophysical permits ....................... 30 CFR 551.
(8) Oil spill financial responsibility coverage ............................... 30 CFR 553.
(9) Oil and gas production safety systems ................................. 30 CFR 250, subpart H.
(10) Oil spill response plans ........................................................ 30 CFR 254.
(11) Oil and gas well-completion operations ............................... 30 CFR 250, subpart E.
(12) Oil and gas well-workover operations ................................. 30 CFR 250, subpart F.
(13) Decommissioning Activities ................................................. 30 CFR 250, subpart Q.
(14) Platforms and structures ...................................................... 30 CFR 250, subpart I.
(15) Pipelines and Pipeline Rights-of-Way ................................. 30 CFR 250, subpart J and 30 CFR 550, subpart J.
(16) Sulphur operations ............................................................... 30 CFR 250, subpart P.
(17) Training ................................................................................ 30 CFR 250, subpart O.
(18) Unitization ............................................................................ 30 CFR 250, subpart M.
§ 550.103 Where can I find more infor- (1) The laws of which are declared,
mation about the requirements in under section 4(a)(2) of the Act, to be
this part? the law of the United States for the
BOEM may issue Notices to Lessees portion of the OCS on which such ac-
and Operators (NTLs) that clarify, sup- tivity is, or is proposed to be, con-
plement, or provide more detail about ducted;
certain requirements. NTLs may also (2) Which is, or is proposed to be, di-
outline what you must provide as re- rectly connected by transportation fa-
quired information in your various sub- cilities to any artificial island or in-
missions to BOEM. stallation or other device permanently
or temporarily attached to the seabed;
§ 550.104 How may I appeal a decision (3) Which is receiving, or according
made under BOEM regulations? to the proposed activity, will receive
To appeal orders or decisions issued oil for processing, refining, or trans-
under BOEM regulations in 30 CFR shipment that was extracted from the
parts 550 to 582, follow the procedures OCS and transported directly to such
in 30 CFR part 590. State by means of vessels or by a com-
bination of means including vessels;
§ 550.105 Definitions. (4) Which is designated by the Sec-
Terms used in this part will have the retary as a State in which there is a
meanings given in the Act and as de- substantial probability of significant
fined in this section: impact on or damage to the coastal,
Act means the OCS Lands Act, as marine, or human environment, or a
amended (43 U.S.C. 1331 et seq.). State in which there will be significant
Affected State means with respect to changes in the social, governmental, or
any program, plan, lease sale, or other economic infrastructure, resulting
activity proposed, conducted, or ap- from the exploration, development, and

proved under the provisions of the Act, production of oil and gas anywhere on
any State: the OCS; or
354
(5) In which the Secretary finds that operations on the Arctic OCS. Such
because of such activity there is, or conditions, depending on the time of
will be, a significant risk of serious year, include, but are not limited to:
damage, due to factors such as pre- extreme cold, freezing spray, snow, ex-
vailing winds and currents to the ma- tended periods of low light, strong
rine or coastal environment in the winds, dense fog, sea ice, strong cur-
event of any oil spill, blowout, or re- rents, and dangerous sea states. Re-
lease of oil or gas from vessels, pipe- mote location, relative lack of infra-
lines, or other transshipment facilities. structure, and the existence of subsist-
Air pollutant means any airborne ence hunting and fishing areas are also
agent or combination of agents for characteristic of the Arctic region.
which the Environmental Protection Attainment area means, for any air
Agency (EPA) has established, under pollutant, an area that is shown by
section 109 of the Clean Air Act, na- monitored data or that is calculated by
tional primary or secondary ambient air quality modeling (or other methods
air quality standards. determined by the Administrator of
Analyzed geological information means EPA to be reliable) not to exceed any
data collected under a permit or a lease primary or secondary ambient air qual-
that have been analyzed. Analysis may ity standards established by EPA.
include, but is not limited to, identi- Best available and safest technology
fication of lithologic and fossil con- (BAST) means the best available and
tent, core analysis, laboratory analyses safest technologies that the Director
of physical and chemical properties, determines to be economically feasible
well logs or charts, results from forma- wherever failure of equipment would
tion fluid tests, and descriptions of hy- have a significant effect on safety,
drocarbon occurrences or hazardous health, or the environment.
conditions.
Best available control technology
Ancillary activities mean those activi-
(BACT) means an emission limitation
ties on your lease or unit that you:
based on the maximum degree of reduc-
(1) Conduct to obtain data and infor-
tion for each air pollutant subject to
mation to ensure proper exploration or
development of your lease or unit; and regulation, taking into account energy,
(2) Can conduct without BOEM ap- environmental and economic impacts,
proval of an application or permit. and other costs. The Regional Director
Archaeological interest means capable will verify the BACT on a case-by-case
of providing scientific or humanistic basis, and it may include reductions
understanding of past human behavior, achieved through the application of
cultural adaptation, and related topics processes, systems, and techniques for
through the application of scientific or the control of each air pollutant.
scholarly techniques, such as con- Coastal environment means the phys-
trolled observation, contextual meas- ical, atmospheric, and biological com-
urement, controlled collection, anal- ponents, conditions, and factors that
ysis, interpretation, and explanation. interactively determine the produc-
Archaeological resource means any tivity, state, condition, and quality of
material remains of human life or ac- the terrestrial ecosystem from the
tivities that are at least 50 years of age shoreline inward to the boundaries of
and that are of archaeological interest. the coastal zone.
Arctic OCS means the Beaufort Sea Coastal zone means the coastal waters
and Chukchi Sea Planning Areas (for (including the lands therein and there-
more information on these areas, see under) and the adjacent shorelands (in-
the Proposed Final OCS Oil and Gas cluding the waters therein and there-
Leasing Program for 2012–2017 (June under) strongly influenced by each
2012) at http://www.boem.gov/Oil-and- other and in proximity to the
Gas-Energy-Program/Leasing/Five-Year- shorelands of the several coastal
Program/2012–2017/Program-Area-Maps/ States. The coastal zone includes is-
index.aspx). lands, transition and intertidal areas,
Arctic OCS conditions means, for the salt marshes, wetlands, and beaches.
purposes of this part, the conditions The coastal zone extends seaward to
operators can reasonably expect during the outer limit of the U.S. territorial
355
§ 550.105 30 CFR Ch. V (7–1–18 Edition)
sea and extends inland from the shore- District Manager means the BSEE of-
lines to the extent necessary to control ficer with authority and responsibility
shorelands, the uses of which have a di- for operations or other designated pro-
rect and significant impact on the gram functions for a district within a
coastal waters, and the inward bound- BSEE Region.
aries of which may be identified by the Easement means an authorization for
several coastal States, under the au- a nonpossessory, nonexclusive interest
thority in section 305(b)(1) of the Coast- in a portion of the OCS, whether leased
al Zone Management Act (CZMA) of or unleased, which specifies the rights
1972. of the holder to use the area embraced
Competitive reservoir means a res- in the easement in a manner consistent
ervoir in which there are one or more with the terms and conditions of the
producible or producing well comple- granting authority.
tions on each of two or more leases or Eastern Gulf of Mexico means all OCS
portions of leases, with different lease areas of the Gulf of Mexico the BOEM
operating interests, from which the les- Director decides are adjacent to the
sees plan future production. State of Florida. The Eastern Gulf of
Correlative rights when used with re- Mexico is not the same as the Eastern
spect to lessees of adjacent leases, Planning Area, an area established for
means the right of each lessee to be af- OCS lease sales.
forded an equal opportunity to explore Emission offsets mean emission reduc-
for, develop, and produce, without tions obtained from facilities, either
waste, minerals from a common source. onshore or offshore, other than the fa-
Data means facts and statistics, cility or facilities covered by the pro-
measurements, or samples that have posed Exploration Plan (EP) or Devel-
not been analyzed, processed, or inter- opment and Production Plan (DPP).
preted. Enhanced recovery operations mean
Departures mean approvals granted pressure maintenance operations, sec-
by the appropriate BSEE or BOEM rep- ondary and tertiary recovery, cycling,
resentative for operating requirements/ and similar recovery operations that
procedures other than those specified alter the natural forces in a reservoir
in the regulations found in this part. to increase the ultimate recovery of oil
These requirements/procedures may be or gas.
necessary to control a well; properly Existing facility, as used in § 550.303,
develop a lease; conserve natural re- means an OCS facility described in an
sources, or protect life, property, or Exploration Plan or a Development and
the marine, coastal, or human environ- Production Plan approved before June
ment. 2, 1980.
Development means those activities Exploration means the commercial
that take place following discovery of search for oil, gas, or sulphur. Activi-
minerals in paying quantities, includ- ties classified as exploration include
ing but not limited to geophysical ac- but are not limited to:
tivity, drilling, platform construction, (1) Geophysical and geological (G&G)
and operation of all directly related on- surveys using magnetic, gravity, seis-
shore support facilities, and which are mic reflection, seismic refraction, gas
for the purpose of producing the min- sniffers, coring, or other systems to de-
erals discovered. tect or imply the presence of oil, gas,
Development geological and geophysical or sulphur; and
(G&G) activities means those G&G and (2) Any drilling conducted for the
related data-gathering activities on purpose of searching for commercial
your lease or unit that you conduct fol- quantities of oil, gas, and sulphur, in-
lowing discovery of oil, gas, or sulphur cluding the drilling of any additional
in paying quantities to detect or imply well needed to delineate any reservoir
the presence of oil, gas, or sulphur in to enable the lessee to decide whether
commercial quantities. to proceed with development and pro-
Director means the Director of BOEM duction.
of the U.S. Department of the Interior, Facility, as used in § 550.303, means all
or an official authorized to act on the installations or devices permanently or
Director’s behalf. temporarily attached to the seabed.
356
They include mobile offshore drilling H2S in concentrations and volumes

units (MODUs), even while operating in that could potentially result in atmos-
the ‘‘tender assist’’ mode (i.e., with pheric concentrations of 20 ppm or
skid-off drilling units) or other vessels more of H2S.
engaged in drilling or downhole oper- H2S unknown means the designation
ations. They are used for exploration, of a zone or geologic formation where
development, and production activities neither the presence nor absence of H2S
for oil, gas, or sulphur and emit or has been confirmed.
have the potential to emit any air pol- Human environment means the phys-
lutant from one or more sources. They ical, social, and economic components,
include all floating production systems conditions, and factors that inter-
(FPSs), including column-stabilized- actively determine the state, condi-
units (CSUs); floating production, stor- tion, and quality of living conditions,
age and offloading facilities (FPSOs); employment, and health of those af-
tension-leg platforms (TLPs); spars, fected, directly or indirectly, by activi-
etc. During production, multiple instal- ties occurring on the OCS.
lations or devices are a single facility Interpreted geological information
if the installations or devices are at a means geological knowledge, often in
single site. Any vessel used to transfer the form of schematic cross sections, 3-
production from an offshore facility is dimensional representations, and maps,
part of the facility while it is phys-
developed by determining the geologi-
ically attached to the facility.
cal significance of data and analyzed
Flaring means the burning of natural
geological information.
gas as it is released into the atmos-
phere. Interpreted geophysical information
Gas reservoir means a reservoir that means geophysical knowledge, often in
contains hydrocarbons predominantly the form of schematic cross sections, 3-
in a gaseous (single-phase) state. dimensional representations, and maps,
Gas-well completion means a well com- developed by determining the geologi-
pleted in a gas reservoir or in the asso- cal significance of geophysical data
ciated gas-cap of an oil reservoir. and analyzed geophysical information.
Geological and geophysical (G&G) ex- Lease means an agreement that is
plorations means those G&G surveys on issued under section 8 or maintained
your lease or unit that use seismic re- under section 6 of the Act and that au-
flection, seismic refraction, magnetic, thorizes exploration for, and develop-
gravity, gas sniffers, coring, or other ment and production of, minerals. The
systems to detect or imply the pres- term also means the area covered by
ence of oil, gas, or sulphur in commer- that authorization, whichever the con-
cial quantities. text requires.
Governor means the Governor of a Lease term pipelines mean those pipe-
State, or the person or entity des- lines owned and operated by a lessee or
ignated by, or under, State law to exer- operator that are completely contained
cise the powers granted to such Gov- within the boundaries of a single lease,
ernor under the Act. unit, or contiguous (not cornering)
H2S absent means: leases of that lessee or operator.
(1) Drilling, logging, coring, testing, Lessee means a person who has en-
or producing operations have con- tered into a lease with the United
firmed the absence of H2S in concentra- States to explore for, develop, and
tions that could potentially result in produce the leased minerals. The term
atmospheric concentrations of 20 ppm lessee also includes the BOEM-ap-
or more of H2S; or proved assignee of the lease, and the
(2) Drilling in the surrounding areas owner or the BOEM-approved assignee
and correlation of geological and seis- of operating rights for the lease.
mic data with equivalent stratigraphic Major Federal action means any ac-
units have confirmed an absence of H2S tion or proposal by the Secretary that
throughout the area to be drilled. is subject to the provisions of section
H2S present means drilling, logging, 102(2)(C) of the National Environmental

coring, testing, or producing oper- Policy Act of 1969, 42 U.S.C. (2)(C) (i.e.,
ations have confirmed the presence of an action that will have a significant
357
§ 550.105 30 CFR Ch. V (7–1–18 Edition)
impact on the quality of the human en- Oil reservoir with an associated gas cap
vironment requiring preparation of an means a reservoir that contains hydro-
environmental impact statement under carbons in both a liquid and gaseous
section 102(2)(C) of the National Envi- (two-phase) state.
ronmental Policy Act). Oil-well completion means a well com-
Marine environment means the phys- pleted in an oil reservoir or in the oil
ical, atmospheric, and biological com- accumulation of an oil reservoir with
ponents, conditions, and factors that an associated gas cap.
interactively determine the produc- Operating rights mean any interest
tivity, state, condition, and quality of held in a lease with the right to explore
the marine ecosystem. These include for, develop, and produce leased sub-
the waters of the high seas, the contig- stances.
uous zone, transitional and intertidal Operator means the person the les-
areas, salt marshes, and wetlands with- see(s) designates as having control or
in the coastal zone and on the OCS. management of operations on the
Material remains means physical evi- leased area or a portion thereof. An op-
dence of human habitation, occupation, erator may be a lessee, the BOEM-ap-
use, or activity, including the site, lo- proved or BSEE-approved designated
cation, or context in which such evi- agent of the lessee(s), or the holder of
dence is situated. operating rights under a BOEM-ap-
Maximum efficient rate (MER) means
proved operating rights assignment.
the maximum sustainable daily oil or
Outer Continental Shelf (OCS) means
gas withdrawal rate from a reservoir
all submerged lands lying seaward and
that will permit economic development
and depletion of that reservoir without outside of the area of lands beneath
detriment to ultimate recovery. navigable waters as defined in section 2
Maximum production rate (MPR) of the Submerged Lands Act (43 U.S.C.
means the approved maximum daily 1301) whose subsoil and seabed apper-
rate at which oil or gas may be pro- tain to the United States and are sub-
duced from a specified oil-well or gas- ject to its jurisdiction and control.
well completion. Person includes a natural person, an
Minerals include oil, gas, sulphur, association (including partnerships,
geopressured-geothermal and associ- joint ventures, and trusts), a State, a
ated resources, and all other minerals political subdivision of a State, or a
that are authorized by an Act of Con- private, public, or municipal corpora-
gress to be produced. tion.
Natural resources include, without Pipelines are the piping, risers, and
limiting the generality thereof, oil, appurtenances installed for trans-
gas, and all other minerals, and fish, porting oil, gas, sulphur, and produced
shrimp, oysters, clams, crabs, lobsters, waters.
sponges, kelp, and other marine animal Processed geological or geophysical in-
and plant life but does not include formation means data collected under a
water power or the use of water for the permit or a lease that have been proc-
production of power. essed or reprocessed. Processing in-
Nonattainment area means, for any air volves changing the form of data to fa-
pollutant, an area that is shown by cilitate interpretation. Processing op-
monitored data or that is calculated by erations may include, but are not lim-
air quality modeling (or other methods ited to, applying corrections for known
determined by the Administrator of perturbing causes, rearranging or fil-
EPA to be reliable) to exceed any pri- tering data, and combining or trans-
mary or secondary ambient air quality forming data elements. Reprocessing is
standard established by EPA. the additional processing other than
Nonsensitive reservoir means a res- ordinary processing used in the general
ervoir in which ultimate recovery is course of evaluation. Reprocessing op-
not decreased by high reservoir produc- erations may include varying identi-
tion rates. fied parameters for the detailed study
Oil reservoir means a reservoir that of a specific problem area.

contains hydrocarbons predominantly Production means those activities
in a liquid (single-phase) state. that take place after the successful
358
completion of any means for the re- ations (Suspension of Operations

moval of minerals, including such re- (SOO)).
moval, field operations, transfer of Venting means the release of gas into
minerals to shore, operation moni- the atmosphere without igniting it.
toring, maintenance, and workover op- This includes gas that is released un-
erations. derwater and bubbles to the atmos-
Production areas are those areas phere.
where flammable petroleum gas, vola- Waste of oil, gas, or sulphur means:
tile liquids or sulphur are produced, (1) The physical waste of oil, gas, or
processed (e.g., compressed), stored, sulphur;
transferred (e.g., pumped), or otherwise (2) The inefficient, excessive, or im-
handled before entering the transpor- proper use, or the unnecessary dissipa-
tation process. tion of reservoir energy;
Projected emissions mean emissions, (3) The locating, spacing, drilling,
either controlled or uncontrolled, from equipping, operating, or producing of
a source or sources. any oil, gas, or sulphur well(s) in a
Prospect means a geologic feature manner that causes or tends to cause a
having the potential for mineral depos- reduction in the quantity of oil, gas, or
its. sulphur ultimately recoverable under
Regional Director means the BOEM of- prudent and proper operations or that
ficer with responsibility and authority causes or tends to cause unnecessary or
for a Region within BOEM. excessive surface loss or destruction of
oil or gas; or
Regional Supervisor means the BOEM
(4) The inefficient storage of oil.
officer with responsibility and author- Welding means all activities con-
ity for operations or other designated nected with welding, including hot tap-
program functions within a BOEM Re- ping and burning.
gion. Wellbay is the area on a facility with-
Right-of-use means any authorization in the perimeter of the outermost
issued under this part to use OCS wellheads.
lands. Well-completion operations mean the
Right-of-way pipelines are those pipe- work conducted to establish production
lines that are contained within: from a well after the production-casing
(1) The boundaries of a single lease or string has been set, cemented, and
unit, but are not owned and operated pressure-tested.
by a lessee or operator of that lease or Well-control fluid means drilling mud,
unit; completion fluid, or workover fluid as
(2) The boundaries of contiguous (not appropriate to the particular operation
cornering) leases that do not have a being conducted.
common lessee or operator; Western Gulf of Mexico means all OCS
(3) The boundaries of contiguous (not areas of the Gulf of Mexico except
cornering) leases that have a common those the BOEM Director decides are
lessee or operator but are not owned adjacent to the State of Florida. The
and operated by that common lessee or Western Gulf of Mexico is not the same
operator; or as the Western Planning Area, an area
(4) An unleased block(s). established for OCS lease sales.
Sensitive reservoir means a reservoir Workover operations mean the work
in which the production rate will affect conducted on wells after the initial
ultimate recovery. well-completion operation for the pur-
Significant archaeological resource pose of maintaining or restoring the
means those archaeological resources productivity of a well.
that meet the criteria of significance You means a lessee, the owner or
for eligibility to the National Register holder of operating rights, a designated
of Historic Places as defined in 36 CFR operator or agent of the lessee(s), a
60.4, or its successor. pipeline right-of-way holder, or a State
Suspension means a granted or di- lessee granted a right-of-use and ease-
rected deferral of the requirement to ment.

produce (Suspension of Production [76 FR 64623, Oct. 18, 2011, as amended at 81
(SOP)) or to conduct leaseholding oper- FR 46565, July 15, 2016]
359
§ 550.115 30 CFR Ch. V (7–1–18 Edition)
PERFORMANCE STANDARDS (c) No section that you count as pro-

ducible under paragraph (b)(4) of this
§ 550.115 How do I determine well section may include any interval that
producibility? appears to be water saturated.
You must follow the procedures in (d) Each section you count as produc-
this section to determine well ible under paragraph (b)(4) of this sec-
producibility if your well is not in the tion must exhibit:
GOM. If your well is in the GOM you (1) A minimum true resistivity ratio
must follow the procedures in either of the producible section to the nearest
this section or in § 550.116 of this sub- clean or water-bearing sand of at least
part. 5:1; and
(a) You must write to the Regional (2) One of the following:
Supervisor asking for permission to de- (i) Electrical spontaneous potential
termine producibility. exceeding 20-negative millivolts be-
(b) You must either: yond the shale baseline; or
(1) Allow the Regional Supervisor to (ii) Gamma ray log deflection of at
witness each test that you conduct least 70 percent of the maximum
under this section; or gamma ray deflection in the nearest
(2) Receive the Regional Supervisor clean water-bearing sand—if mud con-
prior approval so that you can submit ditions prevent a 20-negative millivolt
either test data with your affidavit or reading beyond the shale baseline.
third party test data.
(c) If the well is an oil well, you must § 550.117 How does a determination of
conduct a production test that lasts at well producibility affect royalty sta-
least 2 hours after flow stabilizes. tus?
(d) If the well is a gas well, you must A determination of well producibility
conduct a deliverability test that lasts invokes minimum royalty status on
at least 2 hours after flow stabilizes, or the lease as provided in 30 CFR 1202.53.
a four-point back pressure test.
§ 550.118 [Reserved]
§ 550.116 How do I determine
producibility if my well is in the § 550.119 Will BOEM approve sub-
Gulf of Mexico? surface gas storage?
If your well is in the GOM, you must The Regional Supervisor may author-
follow either the procedures in § 550.115 ize subsurface storage of gas on the
of this subpart or the procedures in OCS, on and off-lease, for later com-
this section to determine producibility. mercial benefit. The Regional Super-
(a) You must write to the Regional visor may authorize subsurface storage
Supervisor asking for permission to de- of gas on the OCS, off-lease, for later
termine producibility. commercial benefit. To receive ap-
(b) You must provide or make avail- proval you must:
able to the Regional Supervisor, as re- (a) Show that the subsurface storage
quested, the following log, core, anal- of gas will not result in undue inter-
yses, and test criteria that BOEM will ference with operations under existing
consider collectively: leases; and
(1) A log showing sufficient porosity (b) Sign a storage agreement that in-
in the producible section. cludes the required payment of a stor-
(2) Sidewall cores and core analyses age fee or rental.
that show that the section is capable of
producing oil or gas. § 550.120 What standards will BOEM
(3) Wireline formation test and/or use to regulate leases, rights-of-use
mud-logging analyses that show that and easement, and rights-of-way?
the section is capable of producing oil BOEM will regulate all activities
or gas. under a lease, a right-of-use and ease-
(4) A resistivity or induction electric ment, or a right-of-way to:
log of the well showing a minimum of (a) Promote the orderly exploration,
15 feet (true vertical thickness except development, and production of min-

for horizontal wells) of producible sand eral resources;
in one section. (b) Prevent injury or loss of life;
360
(c) Prevent damage to or waste of § 550.123 Will BOEM allow gas storage
any natural resource, property, or the on unleased lands?
environment; and
You may not store gas on unleased
(d) Ensure cooperation and consulta-
tion with affected States, local govern- lands unless the Regional Supervisor
ments, other interested parties, and approves a right-of-use and easement
relevant Federal agencies. for that purpose, under §§ 550.160
through 550.166 of this subpart.
[81 FR 18152, Mar. 30, 2016]
FEES
§ 550.121 What must I do to protect
health, safety, property, and the en- § 550.125 Service fees.
vironment?
The Director may require additional (a) The table in this paragraph (a)
measures to ensure the use of Best shows the fees that you must pay to
Available and Safest Technology BOEM for the services listed. The fees
(BAST) as identified by BSEE: will be adjusted periodically according
(a) To avoid the failure of equipment to the Implicit Price Deflator for Gross
that would have a significant effect on Domestic Product by publication of a
safety, health, or the environment; document in the FEDERAL REGISTER. If
(b) If it is economically feasible; and a significant adjustment is needed to
(c) If the incremental benefits justify arrive at the new actual cost for any
the incremental costs. reason other than inflation, then a pro-
[81 FR 18152, Mar. 30, 2016] posed rule containing the new fees will
be published in the FEDERAL REGISTER
§ 550.122 What effect does subsurface for comment.
storage have on the lease term?
If you use a lease area for subsurface
storage of gas, it does not affect the
continuance or expiration of the lease.
Service—processing of the following: Fee amount 30 CFR citation
(1) Change in Designation of Operator .................... $164 ......................................................................... § 550.143(d).

(2) Right-of-Use and Easement for State lessee ..... $2,569 ...................................................................... § 550.165.
(3) [Reserved].
(4) Exploration Plan (EP) .......................................... $3,442 for each surface location; no fee for revi- § 550.211(d).
sions.
(5) Development and Production Plan (DPP) or De- $3,971 for each well proposed; no fee for revisions § 550.241(e).
velopment Operations Coordination Document
(DOCD).
(6) [Reserved].
(7) Conservation Information Document ................... $25,629 .................................................................... § 550.296(a).
(b) Payment of the fees listed in approval or an electronic application

paragraph (a) of this section must ac- submittal within 72 hours. Payment
company the submission of the docu- must be made with the completed
ment for approval or be sent to an of- paper or electronic application.
fice identified by the Regional Direc-
tor. Once a fee is paid, it is nonrefund- § 550.126 Electronic payment instruc-
able, even if an application or other re- tions.
quest is withdrawn. If your application You must file all payments electroni-
is returned to you as incomplete, you cally through Pay.gov. This includes,
are not required to submit a new fee but is not limited to, all OCS applica-
when you submit the amended applications or filing fee payments. The
tion. Pay.gov Web site may be accessed
(c) Verbal approvals are occasionally through Pay.gov at https://www.pay.gov/
given in special circumstances. Any ac- paygov/.
tion that will be considered a verbal (a) [Reserved]

permit approval requires either a paper (b) You must use credit card or auto-
permit application to follow the verbal mated clearing house (ACH) payments
361
§ 550.130 30 CFR Ch. V (7–1–18 Edition)
through the Pay.gov Web site, and you § 550.136 How will BOEM determine if
must include a copy of the Pay.gov con- my performance is unacceptable?
firmation receipt page with your appli-
In determining if your operating per-
cation.
formance is unacceptable, BOEM will
[76 FR 64623, Oct. 18, 2011, as amended at 80 consider, individually or collectively:
FR 57096, Sept. 22, 2015] (a)–(b) [Reserved]
INSPECTION OF OPERATIONS (c) Incidents of noncompliance;
(d) Civil penalties;
§ 550.130 [Reserved] (e) Failure to adhere to OCS lease ob-
ligations; or
DISQUALIFICATION
(f) Any other relevant factors.
§ 550.135 What will BOEM do if my op-
erating performance is unaccept- SPECIAL TYPES OF APPROVALS
able?
§ 550.140 When will I receive an oral
If your operating performance is un- approval?
acceptable, BOEM may disapprove or
revoke your designation as operator on When you apply for BOEM approval
a single facility or multiple facilities. of any activity, we normally give you a
We will give you adequate notice and written decision. The following table
opportunity for a review by BOEM offi- shows circumstances under which we
cials before imposing a disqualifica- may give an oral approval.
tion.
When you . . . We may . . . And . . .
(a) Request approval orally, Give you an oral approval, You must then confirm the oral request by sending us a writ-
ten request within 72 hours.
(b) Request approval in writing, Give you an oral approval if We will send you a written approval afterward. It will include
quick action is needed, any conditions that we place on the oral approval.
§ 550.141 May I ever use alternate pro- apply for a departure by writing to the
cedures or equipment? Regional Supervisor.
You may use alternate procedures or § 550.143 How do I designate an oper-
equipment after receiving approval as ator?
described in this section.
(a) You must provide the Regional
(a) Any alternate procedures or Supervisor an executed Designation of
equipment that you propose to use Operator form (Form BOEM–1123) un-
must provide a level of safety and envi- less you are the only lessee and are the
ronmental protection that equals or only person conducting lease oper-
surpasses current BOEM requirements. ations. When there is more than one
(b) You must receive the Regional lessee, each lessee must submit the
Supervisor’s written approval before Designation of Operator form and the
you can use alternate procedures or Regional Supervisor must approve the
equipment. designation before the designated oper-
(c) To receive approval, you must ei- ator may begin operations on the lease-
ther submit information or give an oral hold.
presentation to the appropriate Re- (b) This designation is authority for
gional Supervisor. Your presentation the designated operator to act on your
must describe the site-specific applica- behalf and to fulfill your obligations
tion(s), performance characteristics, under the Act, the lease, and the regu-
and safety features of the proposed pro- lations in this part.
cedure or equipment. (c) You, or your designated operator,
must immediately provide the Re-
§ 550.142 How do I receive approval gional Supervisor a written notifica-
for departures? tion of any change of address.

We may approve departures to the (d) If you change the designated oper-
operating requirements. You may ator on your lease, you must pay the
362
service fee listed in § 550.125 of this sub- obligations under the Act, the lease, or
part with your request for a change in the regulations.
designation of operator. Should there (c) Whenever the regulations in 30
be multiple lessees, all designation of CFR parts 250 through 282 and 30 CFR
operator forms must be collected by parts 550 through 582 require the lessee
one lessee and submitted to BOEM in a to meet a requirement or perform an
single submittal, which is subject to action, the lessee, operator (if one has
only one filing fee. been designated), and the person actu-
ally performing the activity to which
§ 550.144 How do I designate a new op- the requirement applies are jointly and
erator when a designation of oper- severally responsible for complying
ator terminates? with the regulation.
(a) When a Designation of Operator
terminates, the Regional Supervisor
FR 18152, Mar. 30, 2016]
must approve a new designated oper-
ator before you may continue oper- RIGHT-OF-USE AND EASEMENT
ations. Each lessee must submit a new
executed Designation of Operator form. § 550.160 When will BOEM grant me a
(b) If your Designation of Operator is right-of-use and easement, and
terminated, or a controversy develops what requirements must I meet?
between you and your designated oper- BOEM may grant you a right-of-use
ator, you and your designated operator and easement on leased and unleased
must protect the lessor’s interests. lands on the OCS, if you meet these re-
quirements:
§ 550.146 How do I designate an agent
or a local agent? (a) You must need the right-of-use
and easement to construct and main-
(a) You or your designated operator tain platforms, artificial islands, and
may designate for the Regional Super- installations and other devices at an
visor’s approval, or the Regional Direc- OCS site other than an OCS lease you
tor may require you to designate an own, that are:
agent empowered to fulfill your obliga- (1) Permanently or temporarily at-
tions under the Act, the lease, or the tached to the seabed; and
regulations in this part. (2) Used for conducting exploration,
(b) You or your designated operator development, and production activities
may designate for the Regional Super- or other operations on or off lease; or
visor’s approval a local agent empow- (3) Used for other purposes approved
ered to receive notices and submit re- by BOEM.
quests, applications, notices, or supple- (b) You must exercise the right-of-
mental information. use and easement according to the reg-
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 ulations of this part;
FR 18152, Mar. 30, 2016] (c) You must meet the requirements
at 30 CFR 556.35 (Qualification of les-
§ 550.147 Who is responsible for ful- sees); establish a regional Company
filling leasehold obligations? File as required by BOEM; and must
(a) When you are not the sole lessee, meet bonding requirements;
you and your co-lessee(s) are jointly (d) If you apply for a right-of-use and
and severally responsible for fulfilling easement on a leased area, you must
your obligations under the provisions notify the lessee and give her/him an
of 30 CFR parts 250 through 282 and 30 opportunity to comment on your appli-
CFR parts 550 through 582 unless other- cation; and
wise provided in these regulations. (e) You must receive BOEM approval
(b) If your designated operator fails for all platforms, artificial islands, and
to fulfill any of your obligations under installations and other devices perma-
30 CFR parts 250 through 282 and 30 nently or temporarily attached to the
CFR parts 550 through 582, the Re- seabed.
gional Supervisor may require you or (f) You must pay a rental amount as
any or all of your co-lessees to fulfill required by paragraph (g) of this sec-
those obligations or other operational tion if:
363
§ 550.161 30 CFR Ch. V (7–1–18 Edition)
(1) You obtain a right-of-use and form, artificial island, or installation

easement after January 12, 2004; or or device.
(2) You ask BOEM to modify your (g) If you meet either of the condi-
right-of-use and easement to change tions in paragraph (f) of this section,
the footprint of the associated plat- you must pay a rental amount to
BOEM as shown in the following table:
If . . . Then . . .
(1) Your right-of-use and easement site is located You must pay a rental of $5 per acre per year with a minimum of $450 per
in water depths of less than 200 meters; year. The area subject to annual rental includes the areal extent of an-
chor chains, pipeline risers, and other equipment associated with the
platform, artificial island, installation or device.
(2) Your right-of-use and easement site is located You must pay a rental of $7.50 per acre per year with a minimum of $675
in water depths of 200 meters or greater; per year. The area subject to annual rental includes the areal extent of
anchor chains, pipeline risers, and other equipment associated with the
platform, artificial island, or installation or device.
(h) You may make the rental pay- § 550.162 May I continue my right-of-
ments required by paragraph (g)(1) and use and easement after the termi-
(g)(2) of this section on an annual nation of any lease on which it is
basis, for a 5-year period, or for mul- situated?
tiples of 5 years. You must make the If your right-of-use and easement is
first payment electronically through on a lease, you may continue to exer-
Pay.gov and you must include a copy of cise the right-of-use and easement
the Pay.gov confirmation receipt page after the lease on which it is situated
with your right-of-use and easement terminates. You must only use the
application. You must make all subse- right-of-use and easement for the pur-
quent payments before the respective pose that the grant specifies. All future
time periods begin. lessees of that portion of the OCS on
(i) Late payments. An interest charge which your right-of-use and easement
is situated must continue to recognize
will be assessed on unpaid and under-
the right-of-use and easement for the
paid amounts from the date the
purpose that the grant specifies.
amounts are due, in accordance with
the provisions found in 30 CFR 1218.54. § 550.163 If I have a State lease, will
If you fail to make a payment that is BOEM grant me a right-of-use and
late after written notice from BOEM, easement?
BOEM may initiate cancellation of the (a) BOEM may grant a lessee of a
right-of-use grant and easement. State lease located adjacent to or ac-
cessible from the OCS a right-of-use
§ 550.161 What else must I submit with and easement on the OCS.
my application? (b) BOEM will only grant a right-of-
With your application, you must de- use and easement under this paragraph
scribe the proposed use giving: to enable a State lessee to conduct and
(a) Details of the proposed uses and maintain a device that is permanently
activities including access needs and or temporarily attached to the seabed
special rights of use that you may (i.e., a platform, artificial island, or in-
need; stallation). The lessee must use the de-
(b) A description of all facilities for vice to explore for, develop, and
which you are seeking authorization; produce oil and gas from the adjacent
or accessible State lease and for other
(c) A map or plat describing primary
operations related to these activities.
and alternate project locations; and
(d) A schedule for constructing any § 550.164 If I have a State lease, what
new facilities, drilling or completing conditions apply for a right-of-use
any wells, anticipated production and easement?
rates, and productive life of existing (a) A right-of-use and easement

production facilities. granted under the heading of ‘‘Right-
of-use and easement’’ in this subpart is
364
subject to BOEM regulations, 30 CFR may cancel a lease after notice and op-
parts 550 through 582, BSEE regula- portunity for a hearing when:
tions, 30 CFR parts 250 through 282, and (a) Continued activity on the lease
any terms and conditions that the would probably cause harm or damage
BOEM Regional Director or BSEE Re- to life (including fish and other aquatic
gional Director prescribes. life), property, any mineral deposits (in
(b) For the whole or fraction of the areas leased or not leased), or the ma-
first calendar year, and annually after rine, coastal, or human environment;
that, you must pay to BOEM, in ad-
(b) The threat of harm or damage
vance, an annual rental payment.
will not disappear or decrease to an ac-
§ 550.165 If I have a State lease, what ceptable extent within a reasonable pe-
fees do I have to pay for a right-of- riod of time;
use and easement? (c) The advantages of cancellation
When you apply for a right-of-use and outweigh the advantages of continuing
easement, you must pay: the lease in force; and
(a) A nonrefundable filing fee as spec- (d) A suspension has been in effect for
ified in § 550.125; and at least 5 years or you request termi-
(b) The first year’s rental as specified nation of the suspension and lease can-
in § 550.160(g). cellation.
§ 550.166 If I have a State lease, what
surety bond must I have for a right- § 550.182 When may the Secretary can-
of-use and easement? cel a lease at the exploration stage?
(a) Before BOEM issues you a right- BOEM may not approve an explo-
of-use and easement on the OCS, you ration plan (EP) under 30 CFR part 550,
must furnish the Regional Director a subpart B, if the Regional Supervisor
surety bond for $500,000. determines that the proposed activities
(b) The Regional Director may re- may cause serious harm or damage to
quire additional security from you (i.e., life (including fish and other aquatic
security above the prescribed $500,000) life), property, any mineral deposits,
to cover additional costs and liabilities the National security or defense, or to
for regulatory compliance. This addi- the marine, coastal, or human environ-
tional surety: ment, and that the proposed activity
(1) Must be in the form of a supple- cannot be modified to avoid the condi-
mental bond or bonds meeting the re- tion(s). The Secretary may cancel the
quirements of 30 CFR 556.54 (General lease if:
requirements for bonds) or an increase (a) The primary lease term has not
in the coverage of an existing surety expired (or if the lease term has been
bond.
extended) and exploration has been
(2) Covers additional costs and liabil-
prohibited for 5 years following the dis-
ities for regulatory compliance, includ-
ing well abandonment, platform and approval; or
structure removal, and site clearance (b) You request cancellation at an
from the seafloor of the right-of-use earlier time.
and easement.
§ 550.183 When may BOEM or the Sec-
PRIMARY LEASE REQUIREMENTS, LEASE retary extend or cancel a lease at
TERM EXTENSIONS, AND LEASE CAN- the development and production
CELLATIONS stage?
(a) BOEM may extend your lease if
§ 550.181 When may the Secretary can- you submit a DPP and the Regional
cel my lease and when am I com-
pensated for cancellation? Supervisor disapproves the plan ac-
cording to the regulations in 30 CFR
If the Secretary cancels your lease part 550, subpart B. Following the dis-
under this part or under 30 CFR part approval:
556, you are entitled to compensation
(1) BOEM will allow you to hold the

under § 550.184. Section 550.185 states
conditions under which you will release for 5 years, or less time at your
ceive no compensation. The Secretary request;
365
§ 550.184 30 CFR Ch. V (7–1–18 Edition)
(2) Any time within 5 years after the the amount specified in paragraph (a)
disapproval, you may reapply for ap- of this section.
proval of the same or a modified plan;
and § 550.185 When is there no compensa-
(3) The Regional Supervisor will ap- tion for a lease cancellation?
prove, disapprove, or require modifica- You will not receive compensation
tion of the plan under 30 CFR part 550, from BOEM for lease cancellation if:
subpart B. (a) BOEM disapproves a DPP because
(b) If the Regional Supervisor has not you do not receive concurrence by the
approved a DPP or required you to sub- State under section 307(c)(3)(B)(i) or (ii)
mit a DPP for approval or modifica- of the CZMA, and the Secretary of
tion, the Secretary will cancel the Commerce does not make the finding
lease: authorized by section 307(c)(3)(B)(iii) of
(1) When the 5-year period in para- the CZMA;
graph (a)(1) of this section expires; or (b) You do not submit a DPP under 30
(2) If you request cancellation at an CFR part 550, subpart B or do not com-
earlier time. ply with the approved DPP;
(c) As the lessee of a nonproducing
§ 550.184 What is the amount of com- lease, you fail to comply with the Act,
pensation for lease cancellation? the lease, or the regulations issued
When the Secretary cancels a lease under the Act, and the default con-
under §§ 550.181, 550.182 or 550.183 of this tinues for 30 days after BOEM mails
subpart, you are entitled to receive you a notice by overnight mail;
compensation under 43 U.S.C. (d) The Regional Supervisor dis-
1334(a)(2)(C). You must show the Direc- approves a DPP because you fail to
tor that the amount of compensation comply with the requirements of appli-
claimed is the lesser of paragraph (a) or cable Federal law; or
(b) of this section: (e) The Secretary forfeits and cancels
(a) The fair value of the cancelled a producing lease under section 5(d) of
rights as of the date of cancellation, the Act (43 U.S.C. 1334(d)).
taking into account both:
INFORMATION AND REPORTING
(1) Anticipated revenues from the REQUIREMENTS
lease; and
(2) Costs reasonably anticipated on § 550.186 What reporting information
the lease, including: and report forms must I submit?
(i) Costs of compliance with all appli- (a) You must submit information and
cable regulations and operating orders; reports as BOEM requires.
and (1) You may obtain copies of forms
(ii) Liability for cleanup costs or from, and submit completed forms to,
damages, or both, in the case of an oil the Regional Supervisor.
spill. (2) Instead of paper copies of forms
(b) The excess, if any, over your reve- available from the Regional Super-
nues from the lease (plus interest visor, you may use your own computer-
thereon from the date of receipt to generated forms that are equal in size
date of reimbursement) of: to BOEM’s forms. You must arrange
(1) All consideration paid for the the data on your form identical to the
lease (plus interest from the date of BOEM form. If you generate your own
payment to the date of reimburse- form and it omits terms and conditions
ment); and contained on the official BOEM form,
(2) All your direct expenditures (plus we will consider it to contain the omit-
interest from the date of payment to ted terms and conditions.
the date of reimbursement): (3) You may submit digital data when
(i) After the issue date of the lease; the Region is equipped to accept it.
and (b) When BOEM specifies, you must
(ii) For exploration or development, include, for public information, an ad-
or both. ditional copy of such reports.

(c) Compensation for leases issued be- (1) You must mark it Public Informa-
fore September 18, 1978, will be equal to tion.
366
(2) You must include all required in- § 550.195 [Reserved]

formation, except information exempt
from public disclosure under § 550.197 or § 550.196 Reimbursements for repro-
otherwise exempt from public disclo- duction and processing costs.
sure under law or regulation. (a) BOEM will reimburse you for
costs of reproducing data and informa-
§§ 550.187–550.193 [Reserved] tion that the Regional Director re-
quests if:
§ 550.194 How must I protect archae- (1) You deliver geophysical and geo-
ological resources? logical (G&G) data and information to
(a) If the Regional Director has rea- BOEM for the Regional Director to in-
son to believe that an archaeological spect or select and retain;
resource may exist in the lease area, (2) BOEM receives your request for
the Regional Director will require in reimbursement and the Regional Direc-
writing that your EP, DOCD, or DPP tor determines that the requested re-
be accompanied by an archaeological imbursement is proper; and
report. If the archaeological report (3) The cost is at your lowest rate or
at the lowest commercial rate estab-
suggests that an archaeological re-
lished in the area, whichever is less.
source may be present, you must ei-
(b) BOEM will reimburse you for the
ther: costs of processing geophysical infor-
(1) Locate the site of any operation mation (that does not include cost of
so as not to adversely affect the area data acquisition):
where the archaeological resource may (1) If, at the request of the Regional
be; or Director, you processed the geo-
(2) Establish to the satisfaction of physical data or information in a form
the Regional Director that an archae- or manner other than that used in the
ological resource does not exist or will normal conduct of business; or
not be adversely affected by oper- (2) If you collected the information
ations. This requires further archae- under a permit that BOEM issued to
ological investigation, conducted by an you before October 1, 1985, and the Re-
archaeologist and a geophysicist, using gional Director requests and retains
survey equipment and techniques the the information.
Regional Director considers appro- (c) When you request reimbursement,
priate. You must submit the investiga- you must identify reproduction and
tion report to the Regional Director for processing costs separately from acqui-
review. sition costs.
(d) BOEM will not reimburse you for
(b) If the Regional Director deter-
data acquisition costs or for the costs
mines that an archaeological resource
of analyzing or processing geological
is likely to be present in the lease area
information or interpreting geological
and may be adversely affected by oper- or geophysical information.
ations, the Regional Director will no-
tify you immediately. You must not § 550.197 Data and information to be
take any action that may adversely af- made available to the public or for
fect the archaeological resource until limited inspection.
the Regional Director has told you how BOEM will protect data and informa-
to protect the resource. tion that you submit under this chap-
(c) If you discover any archaeological ter, as described in this section. Para-
resource while conducting operations graphs (a) and (b) of this section de-
in the lease or right-of-way area, you scribe what data and information will
must immediately halt operations be made available to the public with-
within the area of the discovery and re- out the consent of the lessee, under
port the discovery to the BOEM Re- what circumstances, and in what time
gional Director. If investigations deter- period. Paragraph (c) of this section de-
scribes what data and information will
mine that the resource is significant,

the Regional Director will tell you how be made available for limited inspec-
tion without the consent of the lessee,
to protect it.
and under what circumstances.
367
§ 550.197 30 CFR Ch. V (7–1–18 Edition)
(a) All data and information you sub- able to the public upon submission, ex-
mit on BOEM forms will be made avail- cept as specified in the following table:
Data and information not im-
On form . . . Excepted data will be made available . . .
mediately available are . . .
(1) [Reserved]
(2) [Reserved]
(3) [Reserved]
(4) [Reserved]
(5) [Reserved]
(6) BOEM–0127, Sensitive Items 124 through 168, 2 years after the effective date of the Sensitive Reservoir In-
Reservoir Information Re- formation Report.
port,
(7) [Reserved]
(8) [Reserved]
(9) BOEM–0137 OCS Plan In- Items providing the bottomhole When the well goes on production or according to the table in
formation, location, true vertical depth, paragraph (b) of this section, whichever is earlier.
and measured depth of
wells,
(10) BOEM–0140, Bottomhole All items, 2 years after the date of the survey.
Pressure Survey Report,
(b) BOEM will release lease and per- not normally submitted on BOEM
mit data and information that you sub- forms, according to the following table:
mit and BOEM retains, but that are
If . . . BOEM will release . . . At this time . . . Special provisions . . .
(1) The Director determines Geophysical data, Geological At any time, BOEM will release data and
that data and information are data Interpreted G&G infor- information only if release
needed for specific scientific mation, Processed G&G in- would further the National
or research purposes for the formation, Analyzed geo- interest without unduly
Government, logical information, damaging the competitive
position of the lessee.
(2) Data or information is col- Geophysical data, Geological 60 days after BOEM receives BOEM will release the data
lected with high-resolution data, Interpreted G&G infor- the data or information, if and information earlier than
systems (e.g., bathymetry, mation, Processed geologi- the Regional Supervisor 60 days if the Regional Su-
side-scan sonar, subbottom cal information, Analyzed deems it necessary, pervisor determines it is
profiler, and magnetometer) geological information, needed by affected States
to comply with safety or en- to make decisions under
vironmental protection re- subpart B. The Regional
quirements, Supervisor will reconsider
earlier release if you satisfy
him/her that it would unduly
damage your competitive
position.
(3) Your lease is no longer in Geophysical data, Geological When your lease terminates, This release time applies only
effect, data, Processed G&G infor- if the provisions in this table
mation Interpreted G&G in- governing high-resolution
formation, Analyzed geo- systems and the provisions
logical information, in § 552.7 do not apply. The
release time applies to the
geophysical data and infor-
mation only if acquired
postlease for a lessee’s ex-
clusive use.
(4) Your lease is still in effect, Geophysical data, Processed 10 years after you submit the This release time applies only
geophysical information, In- data and information, if the provisions in this table
terpreted G&G information, governing high-resolution
systems and the provisions
in § 552.7 do not apply.
This release time applies to
the geophysical data and
information only if acquired
postlease for a lessee’s ex-
clusive use.
368
If . . . BOEM will release . . . At this time . . . Special provisions . . .
(5) Your lease is still in effect Geological data, analyzed ge- Two years after the required These release times apply
and within the primary term ological information submittal date or 60 days only if the provisions in this
specified in the lease after a lease sale if any table governing high-resolu-
portion of an offered lease tion systems and the provi-
is within 50 miles of a well, sions in § 552.7 do not
whichever is later apply. If the primary term
specified in the lease is ex-
tended, this provision ap-
plies to the extension.
(6) Your lease is in effect and Geological data, Analyzed ge- 2 years after the required None.
beyond the primary term ological information, submittal date,
specified in the lease,
(7) Data or information is sub- Descriptions of downhole lo- When the well goes on pro- Directional survey data may
mitted on well operations, cations, operations, and duction or when geological be released earlier to the
equipment, data is released according owner of an adjacent lease
to §§ 550.197(b)(5) and according to 30 CFR 250
(b)(6), whichever occurs subpart D.
earlier,
(8) Data and information are Any data or information ob- At any time, None.
obtained from beneath un- tained,
leased land as a result of a
well deviation that has not
been approved by the Re-
gional Supervisor,
(9) Except for high-resolution G&G data, analyzed geologi- Geological data and informa- None.
data and information re- cal information, processed tion: 10 years after BOEM
leased under paragraph and interpreted G&G infor- issues the permit; Geo-
(b)(2) of this section data mation, physical data: 50 years
and information acquired by after BOEM issues the per-
a permit under 30 CFR part mit; Geophysical informa-
551 are submitted by a les- tion: 25 years after BOEM
see under part 550, 30 CFR issues the permit,
part 203, or 30 CFR part
250,
(c) BOEM may allow limited data and REFERENCES

information inspection, but only by a
person with a direct interest in related § 550.198 [Reserved]
BOEM decisions and issues in a specific § 550.199 Paperwork Reduction Act
geographic area, and who agrees in statements—information collection.
writing to maintain the confidentiality
(a) OMB has approved the informa-
of geological and geophysical (G&G) tion collection requirements in part 550
data and information submitted under under 44 U.S.C. 3501 et seq. The table in
this part that BOEM uses to: paragraph (e) of this section lists the
(1) Promote operational safety; subpart in the rule requiring the infor-
(2) Protect the environment; or mation and its title, provides the OMB
(3) Make field determinations. control number, and summarizes the
(d) No proprietary information re- reasons for collecting the information
ceived by BOEM under 43 U.S.C. 1352 and how BOEM uses the information.
will be transmitted to any affected The associated BOEM forms required
State unless the lessee, or the per- by this part are listed at the end of this
mittee and all persons to whom such table with the relevant information.
permittee has sold such information (b) Respondents are OCS oil, gas, and
under promise of confidentiality, agree sulphur lessees and operators. The re-
quirement to respond to the informa-
to such transmittal.
tion collections in this part is man-
[76 FR 64623, Oct. 18, 2011, as amended at 81 dated under the Act (43 U.S.C. 1331 et
FR 18152, Mar. 30, 2016] seq.) and the Act’s Amendments of 1978
(43 U.S.C. 1801 et seq.). Some responses
are also required to obtain or retain a
benefit or may be voluntary. Propri-

etary information will be protected
under § 550.197, Data and information to
369
§ 550.200 30 CFR Ch. V (7–1–18 Edition)
be made available to the public or for (d) Send comments regarding any as-
limited inspection; parts 551, 552; and pect of the collections of information
the Freedom of Information Act (5 under this part, including suggestions
U.S.C. 552) and its implementing regu- for reducing the burden, to the Infor-
lations at 43 CFR part 2. mation Collection Clearance Officer,
(c) The Paperwork Reduction Act of Bureau of Ocean Energy Management,
1995 requires us to inform the public 45600 Woodland Road, Sterling, VA
that an agency may not conduct or 20166.
sponsor, and you are not required to re-
(e) BOEM is collecting this informa-
spond to, a collection of information
tion for the reasons given in the fol-
unless it displays a currently valid
OMB control number. lowing table:
30 CFR subpart, title and/or BOEM Form (OMB Control No.) Reasons for collecting information and how used
(1) Subpart A, General (1010–0114), including Forms BOEM– To inform BOEM of actions taken to comply with general re-
1123, Designation of Operator and BOEM–1832, Notification quirements on the OCS. To ensure that operations on the
of Incidents of Noncompliance. OCS meet statutory and regulatory requirements, are safe
and protect the environment, and result in diligent explo-
ration, development, and production on OCS leases. To sup-
port the unproved and proved reserve estimation, resource
assessment, and fair market value determinations.
(2) Subpart B, Exploration and Development and Production To inform BOEM, States, and the public of planned explo-
Plans (1010–0151), including Forms BOEM–0137, OCS Plan ration, development, and production operations on the OCS.
Information Form; BOEM–0138, EP Air Quality Screening To ensure that operations on the OCS are planned to com-
Checklist; BOEM–0139, DOCD Air Quality Screening Check- ply with statutory and regulatory requirements, will be safe
list; BOEM–0141, ROV Survey Report Form; and BOEM– and protect the human, marine, and coastal environment,
0142, Environmental Impact Analysis Worksheet. and will result in diligent exploration, development, and pro-
duction of leases.
(3) Subpart C, Pollution Prevention and Control (1010–0057) ... To inform BOEM of measures to be taken to prevent air pollu-
tion. To ensure that appropriate measures are taken to pre-
vent air pollution.
(4) Subpart J, Pipelines and Pipeline Rights-of-Way (1010– To provide BOEM with information regarding the design, instal-
0050), including Form BOEM–2030, Outer Continental Shelf lation, and operation of pipelines on the OCS. To ensure
(OCS) Pipeline Right-of-Way Grant Bond. that pipeline operations are safe and protect the human, ma-
rine, and coastal environment.
(5) Subpart K, Oil and Gas Production Rates (1010–0041), in- To inform BOEM of production rates for hydrocarbons pro-
cluding Forms BOEM–0127, Sensitive Reservoir Information duced on the OCS. To ensure economic maximization of ul-
Report and BOEM–0140, Bottomhole Pressure Survey Re- timate hydrocarbon recovery.
port.
(6) Subpart N, Remedies and Penalties ..................................... The requirements in subpart N are exempt from the Paperwork
Reduction Act of 1995 according to 5 CFR 1320.4.
[76 FR 64623, Oct. 18, 2011, as amended at 80 DOCD means Development Oper-
FR 57096, Sept. 22, 2015] ations Coordination Document.
DPP means Development and Produc-
Subpart B—Plans and Information tion Plan.
DWOP means Deepwater Operations
GENERAL INFORMATION Plan.
EIA means Environmental Impact
Analysis.
Acronyms and terms used in this sub- EP means Exploration Plan.
part have the following meanings: IOP means Integrated Operations
(a) Acronyms used frequently in this Plan.
subpart are listed alphabetically below: NPDES means National Pollutant
BOEM means Bureau of Ocean En- Discharge Elimination System.
ergy Management. NTL means Notice to Lessees and Op-
BSEE means Bureau of Safety and erators.
Environmental Enforcement. OCS means Outer Continental Shelf.
CID means Conservation Information (b) Terms used in this subpart are
Document. listed alphabetically below:

CZMA means Coastal Zone Manage-
ment Act.
370
Amendment means a change you make Offshore vehicle means a vehicle that
to an EP, DPP, or DOCD that is pend- is capable of being driven on ice.
ing before BOEM for a decision (see Resubmitted OCS plan means an EP,
§§ 550.232(d) and 550.267(d)). DPP, or DOCD that contains changes
Modification means a change required you make to an OCS plan that BOEM
by the Regional Supervisor to an EP, has disapproved (see §§ 550.234(b),
DPP, or DOCD (see § 550.233(b)(2) and 550.272(a), and 550.273(b)).
§ 550.270(b)(2)) that is pending before Revised OCS plan means an EP, DPP,
BOEM for a decision because the OCS or DOCD that proposes changes to an
plan is inconsistent with applicable reapproved OCS plan, such as those in
quirements. the location of a well or platform, type
New or unusual technology means of drilling unit, or location of the on-
equipment or procedures that: shore support base (see § 550.283(a)).
(1) Have not been used previously or Supplemental OCS plan means an EP,
extensively in a BOEM OCS Region; DPP, or DOCD that proposes the addi-
(2) Have not been used previously tion to an approved OCS plan of an ac-
under the anticipated operating condi- tivity that requires approval of an ap-
tions; or plication or permit (see § 550.283(b)).
(3) Have operating characteristics [76 FR 64623, Oct. 18, 2011, as amended at 81
that are outside the performance pa- FR 46565, July 15, 2016]
rameters established by this part.
Non-conventional production or comple- § 550.201 What plans and information
tion technology includes, but is not lim- must I submit before I conduct any
ited to, floating production systems, activities on my lease or unit?
tension leg platforms, spars, floating (a) Plans and documents. Before you
production, storage, and offloading sys- conduct the activities on your lease or
tems, guyed towers, compliant towers, unit listed in the following table, you
subsea manifolds, and other subsea pro- must submit, and BOEM must approve,
duction components that rely on a re- the listed plans and documents. Your
mote site or host facility for utility plans and documents may cover one or
and well control services. more leases or units.
You must submit a(n) . . . Before you . . .
(1) Exploration Plan (EP), Conduct any exploration activities on a lease or unit.
(2) Development and Production Plan Conduct any development and production activities on a lease or unit in any OCS
(DPP), area other than the Western Gulf of Mexico.
(3) Development Operations Coordination Conduct any development and production activities on a lease or unit in the West-
Document (DOCD), ern GOM.
(4) BSEE approved Deepwater Operations Conduct post-drilling installation activities in any water depth associated with a de-
Plan (DWOP), velopment project that will involve the use of a non-conventional production or
completion technology.
(5) Conservation Information Document Commence production from development projects in water depths greater than
(CID), 1,312 feet (400 meters).
(6) EP, DPP, or DOCD, Conduct geological or geophysical (G&G) exploration or a development G&G activ-
ity (see definitions under § 550.105) on your lease or unit when:
(i) It will result in a physical penetration of the seabed greater than 500 feet (152
meters);
(ii) It will involve the use of explosives;
(iii) The Regional Director determines that it might have a significant adverse effect
on the human, marine, or coastal environment; or
(iv) The Regional Supervisor, after reviewing a notice under § 550.209, determines
that an EP, DPP, or DOCD is necessary.
(b) Submitting additional information. (c) Limiting information. The Regional

On a case-by-case basis, the Regional Director may limit the amount of in-
Supervisor may require you to submit formation or analyses that you other-
additional information if the Regional wise must provide in your proposed
Supervisor determines that it is nec- plan or document under this subpart
essary to evaluate your proposed plan when:

or document.
371
§ 550.202 30 CFR Ch. V (7–1–18 Edition)
(1) Sufficient applicable information (e) Location of drilling units and

or analysis is readily available to platforms;
BOEM; (f) Extent and thickness of the res-
(2) Other coastal or marine resources ervoir;
are not present or affected; (g) Geologic and other reservoir char-
(3) Other factors such as techno- acteristics;
logical advances affect information (h) Minimizing environmental risk;
needs; or (i) Preventing unreasonable inter-
(4) Information is not necessary or ference with other uses of the OCS; and
required for a State to determine con- (j) Drilling of unnecessary wells.
sistency with their CZMA Plan.
(d) Referencing. In preparing your § 550.204 When must I submit my IOP
proposed plan or document, you may for proposed Arctic exploratory
drilling operations and what must
reference information and data dis- the IOP include?
cussed in other plans or documents you
previously submitted or that are other- If you propose exploratory drilling
wise readily available to BOEM. activities on the Arctic OCS, you must
submit an Integrated Operations Plan
§ 550.202 What criteria must the Explo- (IOP) to the Regional Supervisor at
ration Plan (EP), Development and least 90 days prior to filing your EP.
Production Plan (DPP), or Develop- Your IOP must describe how your ex-
ment Operations Coordination Doc- ploratory drilling program will be de-
ument (DOCD) meet? signed and conducted in an integrated
Your EP, DPP, or DOCD must dem- manner that accounts for Arctic OCS
onstrate that you have planned and are conditions and include the following
prepared to conduct the proposed ac- information:
tivities in a manner that: (a) A description of how all vessels
(a) Conforms to the Outer Conti- and equipment will be designed, built,
nental Shelf Lands Act as amended and/or modified to account for Arctic
(Act), applicable implementing regula- OCS conditions;
tions, lease provisions and stipulations, (b) A schedule of your exploratory
and other Federal laws; drilling program, including contractor
(b) Is safe; work on critical components of your
(c) Conforms to sound conservation program;
practices and protects the rights of the (c) A description of your mobilization
lessor; and demobilization operations, includ-
(d) Does not unreasonably interfere ing tow plans that account for Arctic
with other uses of the OCS, including OCS conditions, as well as your general
those involved with National security maintenance schedule for vessels and
or defense; and equipment;
(e) Does not cause undue or serious (d) A description of your exploratory
harm or damage to the human, marine, drilling program objectives and
or coastal environment. timelines for each objective, including
general plans for abandonment of the
§ 550.203 Where can wells be located well(s), such as:
under an EP, DPP, or DOCD? (1) Contingency plans for temporary
The Regional Supervisor reviews and abandonment in the event of ice en-
approves proposed well location and croachment at the drill site;
spacing under an EP, DPP, or DOCD. In (2) Plans for permanent abandon-
deciding whether to approve a proposed ment; and
well location and spacing, the Regional (3) Plans for temporary seasonal
Supervisor will consider factors includ- abandonment.
ing, but not limited to, the following: (e) A description of your weather and
(a) Protecting correlative rights; ice forecasting capabilities for all
(b) Protecting Federal royalty inter- phases of the exploration program, in-
ests; cluding a description of how you would
(c) Recovering optimum resources; respond to and manage ice hazards and
(d) Number of wells that can be eco- weather events;

nomically drilled for proper reservoir (f) A description of work to be per-
management; formed by contractors supporting your
372
exploration drilling program (including fected States and other reviewing enti-
mobilization and demobilization), in- ties.
cluding: (b) Electronic submission. You may
(1) How such work will be designed or submit part or all of your IOP, EP,
modified to account for Arctic OCS DPP, or DOCD and its accompanying
conditions; and information electronically. If you pre-
(2) Your concepts for contractor man- fer to submit your IOP, EP, DPP, or
agement, oversight, and risk manage- DOCD electronically, ask the Regional
ment. Supervisor for further guidance.
(g) A description of how you will en- (c) Withdrawal after submission. You
sure operational safety while working may withdraw your proposed IOP, EP,
in Arctic OCS conditions, including but DPP, or DOCD at any time for any rea-
not limited to: son. Notify the appropriate BOEM OCS
(1) The safety principles that you in- Region if you do.
tend to apply to yourself and your con-
[81 FR 46565, July 15, 2016]
tractors;
(2) The accountability structure ANCILLARY ACTIVITIES
within your organization for imple-
menting such principles; § 550.207 What ancillary activities may
(3) How you will communicate such I conduct?
principles to your employees and con- Before or after you submit an EP,
tractors; and DPP, or DOCD to BOEM, you may
(4) How you will determine successful elect, the regulations in this part may
implementation of such principles. require, or the Regional Supervisor
(h) Information regarding your prep- may direct you to conduct ancillary
arations and plans for staging of oil activities. Ancillary activities include:
spill response assets; (a) Geological and geophysical (G&G)
(i) A description of your efforts to explorations and development G&G ac-
minimize impacts of your exploratory tivities;
drilling operations on local community (b) Geological and high-resolution
infrastructure, including but not lim- geophysical, geotechnical, archae-
ited to housing, energy supplies, and ological, biological, physical oceano-
services; and graphic, meteorological, socio-
(j) A description of whether and to economic, or other surveys; or
what extent your project will rely on (c) Studies that model potential oil
local community workforce and spill and hazardous substance spills, drilling
cleanup response capacity. muds and cuttings discharges, pro-
[81 FR 46565, July 15, 2016] jected air emissions, or potential hy-
drogen sulfide (H2S) releases.
§ 550.205 [Reserved]
§ 550.208 If I conduct ancillary activi-
§ 550.206 How do I submit the IOP, EP, ties, what notices must I provide?
DPP, or DOCD? At least 30 calendar days before you
(a) Number of copies. When you submit conduct any G&G exploration or devel-
an IOP, EP, DPP, or DOCD to BOEM, opment G&G activity (see § 550.207(a)),
you must provide: you must notify the Regional Super-
(1) Four copies that contain all re- visor in writing.
quired information (proprietary cop- (a) When you prepare the notice, you
ies); must:
(2) Eight copies for public distribu- (1) Sign and date the notice;
tion (public information copies) that (2) Provide the names of the vessel,
omit information that you assert is exits operator, and the person(s) in
empt from disclosure under the Free- charge; the specific type(s) of oper-
dom of Information Act (FOIA) (5 ations you will conduct; and the in-
U.S.C. 552) and the implementing regu- strumentation/techniques and vessel
lations (43 CFR part 2); and navigation system you will use;
(3) Any additional copies that may be (3) Provide expected start and com-
necessary to facilitate review of the pletion dates and the location of the
IOP, EP, DPP, or DOCD by certain af- activity; and
373
§ 550.209 30 CFR Ch. V (7–1–18 Edition)
(4) Describe the potential adverse en- applicable, BOEM will protect and dis-
vironmental effects of the proposed ac- close such submitted data and informa-
tivity and any mitigation to eliminate tion in accordance with § 550.197(b).
or minimize these effects on the ma-
rine, coastal, and human environment. CONTENTS OF EXPLORATION PLANS (EP)
(b) The Regional Supervisor may re-
quire you to: § 550.211 What must the EP include?
(1) Give written notice to BOEM at Your EP must include the following:
least 15 calendar days before you con- (a) Description, objectives, and sched-
duct any other ancillary activity (see ule. A description, discussion of the ob-
§ 550.207(b) and (c)) in addition to those jectives, and tentative schedule (from
listed in § 550.207(a); and start to completion) of the exploration
(2) Notify other users of the OCS be- activities that you propose to under-
fore you conduct any ancillary activ- take. Examples of exploration activi-
ity. ties include exploration drilling, well
test flaring, installing a well protec-
§ 550.209 What is the BOEM review tion structure, and temporary well
process for the notice? abandonment.
The Regional Supervisor will review (b) Location. A map showing the sur-
any notice required under § 550.208(a) face location and water depth of each
and (b)(1) to ensure that your ancillary proposed well and the locations of all
activity complies with the performance associated drilling unit anchors.
standards listed in § 550.202(a), (b), (d), (c) Drilling unit. A description of the
and (e). The Regional Supervisor may drilling unit and associated equipment
notify you that your ancillary activity you will use to conduct your proposed
does not comply with those standards. exploration activities, including a brief
In such a case, the Regional Supervisor description of its important safety and
will require you to submit an EP, DPP, pollution prevention features, and a
or DOCD and you may not start your table indicating the type and the esti-
ancillary activity until the Regional mated maximum quantity of fuels, oil,
Supervisor approves the EP, DPP, or and lubricants that will be stored on
DOCD. the facility (see definition of ‘‘facility’’
under § 550.105(3)).
§ 550.210 If I conduct ancillary activi-
ties, what reporting and data/infor- (d) Service fee. You must include pay-
mation retention requirements ment of the service fee listed in
must I satisfy? § 550.125.
(a) Reporting. The Regional Super- § 550.212 What information must ac-
visor may require you to prepare and company the EP?
submit reports that summarize and
analyze data or information obtained The following information must ac-
or derived from your ancillary activi- company your EP:
ties. When applicable, BOEM will pro- (a) General information required by
tect and disclose the data and informa- § 550.213;
tion in these reports in accordance (b) Geological and geophysical (G&G)
with § 550.197(b). information required by § 550.214;
(b) Data and information retention. (c) Hydrogen sulfide information re-
You must retain copies of all original quired by § 550.215;
data and information, including navi- (d) Biological, physical, and socio-
gation data, obtained or derived from economic information required by
your G&G explorations and develop- § 550.216;
ment G&G activities (see § 550.207(a)), (e) Solid and liquid wastes and dis-
including any such data and informa- charges information and cooling water
tion you obtained from previous lease- intake information required by
holders or unit operators. You must § 550.217;
submit such data and information to (f) Air emissions information re-
BOEM for inspection and possible required by § 550.218;

tention upon request at any time be- (g) Oil and hazardous substance spills
fore lease or unit termination. When information required by § 550.219;
374
(h) Alaska planning information re- to carry out your proposed exploration
quired by § 550.220; activities, include a statement so indi-
(i) Environmental monitoring infor- cating.
mation required by § 550.221; (e) Bonds, oil spill financial responsi-
(j) Lease stipulations information re- bility, and well control statements. State-
quired by § 550.222; ments attesting that:
(k) Mitigation measures information (1) The activities and facilities pro-
required by § 550.223; posed in your EP are or will be covered
(l) Support vessels and aircraft infor- by an appropriate bond under 30 CFR
mation required by § 550.224; part 556, subpart I;
(m) Onshore support facilities infor- (2) You have demonstrated or will
mation required by § 550.225; demonstrate oil spill financial respon-
(n) Coastal zone management infor- sibility for facilities proposed in your
mation required by § 550.226; EP according to 30 CFR part 553; and
(o) Environmental impact analysis (3) You have or will have the finan-
information required by § 550.227; and cial capability to drill a relief well and
(p) Administrative information re- conduct other emergency well control
quired by § 550.228. operations.
(f) Suspensions of operations. A brief
§ 550.213 What general information discussion of any suspensions of oper-
must accompany the EP? ations that you anticipate may be nec-
The following general information essary in the course of conducting your
must accompany your EP: activities under the EP.
(a) Applications and permits. A listing, (g) Blowout scenario. A scenario for
including filing or approval status, of the potential blowout of the proposed
the Federal, State, and local applica- well in your EP that you expect will
tion approvals or permits you must ob- have the highest volume of liquid hy-
tain to conduct your proposed explo- drocarbons. Include the estimated flow
ration activities. rate, total volume, and maximum dura-
(b) Drilling fluids. A table showing the tion of the potential blowout. Also, dis-
projected amount, discharge rate, and cuss the potential for the well to bridge
chemical constituents for each type over, the likelihood for surface inter-
(i.e., water-based, oil-based, synthetic- vention to stop the blowout, the avail-
based) of drilling fluid you plan to use ability of a rig to drill a relief well, and
to drill your proposed exploration rig package constraints. Estimate the
wells. time it would take to drill a relief well.
(c) Chemical products. A table showing (h) Contact. The name, address (e-
the name and brief description, quan- mail address, if available), and tele-
tities to be stored, storage method, and phone number of the person with whom
rates of usage of the chemical products the Regional Supervisor and any af-
you will use to conduct your proposed fected State(s) can communicate about
exploration activities. List only those your EP.
chemical products you will store or use
in quantities greater than the amounts § 550.214 What geological and geo-
defined as Reportable Quantities in 40 physical (G&G) information must
CFR part 302, or amounts specified by accompany the EP?
the Regional Supervisor. The following G&G information must
(d) New or unusual technology. A de- accompany your EP:
scription and discussion of any new or (a) Geological description. A geological
unusual technology (see definition description of the prospect(s).
under § 550.200) you will use to carry (b) Structure contour maps. Current
out your proposed exploration activi- structure contour maps (depth-based,
ties. In the public information copies of expressed in feet subsea) drawn on the
your EP, you may exclude any propri- top of each prospective hydrocarbon-
etary information from this descrip- bearing reservoir showing the locations
tion. In that case, include a brief dis- of proposed wells.
cussion of the general subject matter (c) Two-dimensional (2–D) or three-di-

of the omitted information. If you will mensional (3–D) seismic lines. Copies of
not use any new or unusual technology migrated and annotated 2–D or 3–D
375
§ 550.215 30 CFR Ch. V (7–1–18 Edition)
seismic lines (with depth scale) inter- § 550.215 What hydrogen sulfide (H 2S)
secting at or near your proposed well information must accompany the
locations. You are not required to con- EP?
duct both 2–D and 3–D seismic surveys The following H2S information, as ap-
if you choose to conduct only one type plicable, must accompany your EP:
of survey. If you have conducted both (a) Concentration. The estimated con-
types of surveys, the Regional Super- centration of any H2S you might en-
visor may instruct you to submit the counter while you conduct your pro-
results of both surveys. You must in- posed exploration activities.
terpret and display this information. (b) Classification. Under 30 CFR
Because of its volume, provide this in- 250.490(c), a request that the BSEE Re-
formation as an enclosure to only one gional Supervisor classify the area of
proprietary copy of your EP. your proposed exploration activities as
(d) Geological cross-sections. Inter- either H2S absent, H2S present, or H2S
preted geological cross-sections show- unknown. Provide sufficient informa-
ing the location and depth of each pro- tion to justify your request.
posed well. (c) H2S Contingency Plan. If you ask
the Regional Supervisor to classify the
(e) Shallow hazards report. A shallow
area of your proposed exploration ac-
hazards report based on information
tivities as either H2S present or H2S
obtained from a high-resolution geo- unknown, an H2S Contingency Plan
physical survey, or a reference to such prepared under 30 CFR 250.490(f), or a
report if you have already submitted it reference to an approved or submitted
to the Regional Supervisor. H2S Contingency Plan that covers the
(f) Shallow hazards assessment. For proposed exploration activities.
each proposed well, an assessment of (d) Modeling report. If you modeled a
any seafloor and subsurface geological potential H2S release when developing
and manmade features and conditions your EP, modeling report or the mod-
that may adversely affect your pro- eling results, or a reference to such re-
posed drilling operations. port or results if you have already sub-
(g) High-resolution seismic lines. A mitted it to the Regional Supervisor.
copy of the high-resolution survey line (1) The analysis in the modeling re-
closest to each of your proposed well port must be specific to the particular
locations. Because of its volume, pro- site of your proposed exploration ac-
vide this information as an enclosure tivities, and must consider any nearby
to only one proprietary copy of your human-occupied OCS facilities, ship-
EP. You are not required to provide ping lanes, fishery areas, and other
this information if the surface location points where humans may be subject to
of your proposed well has been ap- potential exposure from an H2S release
proved in a previously submitted EP, from your proposed exploration activi-
DPP, or DOCD. ties.
(h) Stratigraphic column. A general- (2) If any H2S emissions are projected
ized biostratigraphic/lithostratigraphic to affect an onshore location in con-
column from the surface to the total centrations greater than 10 parts per
depth of the prospect. million, the modeling analysis must be
consistent with the Environmental
(i) Time-versus-depth chart. A seismic
Protection Agency’s (EPA) risk man-
travel time-versus-depth chart based
agement plan methodologies outlined
on the appropriate velocity analysis in
in 40 CFR part 68.
the area of interpretation and speci-
fying the geodetic datum. § 550.216 What biological, physical,
(j) Geochemical information. A copy of and socioeconomic information
any geochemical reports you used or must accompany the EP?
generated. If you obtain the following informa-
(k) Future G&G activities. A brief de- tion in developing your EP, or if the
scription of the types of G&G explo- Regional Supervisor requires you to
rations and development G&G activi- obtain it, you must include a report, or
ties you may conduct for lease or unit the information obtained, or a ref-
purposes after your EP is approved. erence to such a report or information
376
if you have already submitted it to the NPDES permit that covers your pro-
Regional Supervisor, as accompanying posed exploration activities; or
information: (2) A copy of your application for an
(a) Biological environment reports. individual NPDES permit. Briefly de-
Site-specific information on scribe the major discharges and meth-
chemosynthetic communities, feder- ods you will use for compliance.
ally listed threatened or endangered (d) Modeling report. The modeling re-
species, marine mammals protected port or the modeling results (if you
under the Marine Mammal Protection modeled the discharges of your pro-
Act (MMPA), sensitive underwater fea- jected solid or liquid wastes when de-
tures, marine sanctuaries, critical veloping your EP), or a reference to
habitat designated under the Endan- such report or results if you have al-
gered Species Act (ESA), or other areas ready submitted it to the Regional Su-
of biological concern. pervisor.
(b) Physical environment reports. Site- (e) Projected cooling water intake. A
specific meteorological, physical table for each cooling water intake
oceanographic, geotechnical reports, or structure likely to be used by your pro-
archaeological reports (if required posed exploration activities that in-
under § 550.194). cludes a brief description of the cooling
(c) Socioeconomic study reports. Socio- water intake structure, daily water in-
economic information regarding your take rate, water intake through screen
proposed exploration activities. velocity, percentage of water intake
used for cooling water, mitigation
§ 550.217 What solid and liquid wastes measures for reducing impingement
and discharges information and and entrainment of aquatic organisms,
cooling water intake information and biofouling prevention measures.
must accompany the EP?
The following solid and liquid wastes § 550.218 What air emissions informa-
and discharges information and cooling tion must accompany the EP?
water intake information must accom- The following air emissions informa-
pany your EP: tion, as applicable, must accompany
(a) Projected wastes. A table providing your EP:
the name, brief description, projected (a) Projected emissions. Tables showing
quantity, and composition of solid and the projected emissions of sulphur di-
liquid wastes (such as spent drilling oxide (SO2), particulate matter in the
fluids, drill cuttings, trash, sanitary form of PM10 and PM2.5 when applica-
and domestic wastes, and chemical ble, nitrogen oxides (NOX), carbon mon-
product wastes) likely to be generated oxide (CO), and volatile organic com-
by your proposed exploration activi- pounds (VOC) that will be generated by
ties. Describe: your proposed exploration activities.
(1) The methods you used for deter- (1) For each source on or associated
mining this information; and with the drilling unit (including well
(2) Your plans for treating, storing, test flaring and well protection struc-
and downhole disposal of these wastes ture installation), you must list:
at your drilling location(s). (i) The projected peak hourly emis-
(b) Projected ocean discharges. If any sions;
of your solid and liquid wastes will be (ii) The total annual emissions in
discharged overboard, or are planned tons per year;
discharges from manmade islands: (iii) Emissions over the duration of
(1) A table showing the name, pro- the proposed exploration activities;
jected amount, and rate of discharge (iv) The frequency and duration of
for each waste type; and emissions; and
(2) A description of the discharge (v) The total of all emissions listed in
method (such as shunting through a paragraphs (a)(1)(i) through (iv) of this
downpipe, etc.) you will use. section.
(c) National Pollutant Discharge Elimi- (2) You must provide the basis for all
nation System (NPDES) permit. (1) A dis- calculations, including engine size and
cussion of how you will comply with rating, and applicable operational in-
the provisions of the applicable general formation.
377
§ 550.219 30 CFR Ch. V (7–1–18 Edition)
(3) You must base the projected emis- § 550.219 What oil and hazardous sub-
sions on the maximum rated capacity stance spills information must ac-
of the equipment on the proposed drill- company the EP?
ing unit under its physical and oper- The following information regarding
ational design. potential spills of oil (see definition
(4) If the specific drilling unit has not under 30 CFR 254.6) and hazardous sub-
yet been determined, you must use the stances (see definition under 40 CFR
maximum emission estimates for the part 116) as applicable, must accom-
type of drilling unit you will use. pany your EP:
(b) Emission reduction measures. A de- (a) Oil spill response planning. The ma-
scription of any proposed emission re- terial required under paragraph (a)(1)
duction measures, including the af- or (a)(2) of this section:
fected source(s), the emission reduc- (1) An Oil Spill Response Plan
(OSRP) for the facilities you will use to
tion control technologies or proce-
conduct your exploration activities
dures, the quantity of reductions to be
prepared according to the requirements
achieved, and any monitoring system
of 30 CFR part 254, subpart B; or
you propose to use to measure emis- (2) Reference to your approved re-
sions. gional OSRP (see 30 CFR 254.3) to in-
(c) Processes, equipment, fuels, and clude:
combustibles. A description of processes, (i) A discussion of your regional
processing equipment, combustion OSRP;
equipment, fuels, and storage units. (ii) The location of your primary oil
You must include the characteristics spill equipment base and staging area;
and the frequency, duration, and max- (iii) The name(s) of your oil spill re-
imum burn rate of any well test fluids moval organization(s) for both equip-
to be burned. ment and personnel;
(d) Distance to shore. Identification of (iv) The calculated volume of your
the distance of your drilling unit from worst case discharge scenario (see 30
the mean high water mark (mean high- CFR 254.26(a)), and a comparison of the
er high water mark on the Pacific appropriate worst case discharge sce-
coast) of the adjacent State. nario in your approved regional OSRP
(e) Non-exempt drilling units. A de- with the worst case discharge scenario
scription of how you will comply with that could result from your proposed
exploration activities; and
§ 550.303 when the projected emissions
(v) A description of the worst case
of SO2, PM, NOX, CO, or VOC, that will
discharge scenario that could result
be generated by your proposed explo-
from your proposed exploration activi-
ration activities, are greater than the ties (see 30 CFR 254.26(b), (c), (d), and
respective emission exemption (e)).
amounts ‘‘E’’ calculated using the for- (b) Modeling report. If you model a po-
mulas in § 550.303(d). When BOEM re- tential oil or hazardous substance spill
quires air quality modeling, you must in developing your EP, a modeling re-
use the guidelines in Appendix W of 40 port or the modeling results, or a ref-
CFR part 51 with a model approved by erence to such report or results if you
the Director. Submit the best available have already submitted it to the Re-
meteorological information and data gional Supervisor.
consistent with the model(s) used.
(f) Modeling report. A modeling report § 550.220 If I propose activities in the
Alaska OCS Region, what planning
or the modeling results (if § 550.303 re- information must accompany the
quires you to use an approved air qual- EP?
ity model to model projected air emis-
If you propose exploration activities
sions in developing your EP), or a ref-
in the Alaska OCS Region, the fol-
erence to such a report or results if you
lowing planning information must ac-
have already submitted it to the Re- company your EP:
gional Supervisor. (a) Emergency plans. A description of

your emergency plans to respond to a
fire, explosion, personnel evacuation,
378
or loss of well control, as well as a loss (5) Resource-sharing. Any agreements

or disablement of a drilling unit, and you have with third parties for the
loss of or damage to a support vessel, sharing of assets or the provision of
offshore vehicle, or aircraft. mutual aid in the event of an oil spill
(b) Critical operations and curtailment or other emergency.
procedures. Critical operations and cur- (6) Anticipated end of seasonal oper-
tailment procedures for your explo- ations dates. Your projected end of sea-
ration activities. The procedures must son dates, and the information used to
identify ice conditions, weather, and identify those dates, for:
other constraints under which the ex- (i) The completion of on-site oper-
ploration activities will either be cur- ations, which is contingent upon your
tailed or not proceed. capability in terms of equipment and
(c) If you propose exploration activi- procedures to manage and mitigate
ties on the Arctic OCS, the following risks associated with Arctic OCS condi-
planning information must also accom- tions; and
pany your EP: (ii) The termination of drilling oper-
(1) Suitability for Arctic OCS condi- ations consistent with the relief rig
tions. A description of how your explor- planning requirements under § 250.472 of
atory drilling activities will be de- this title and with your estimated
signed and conducted in a manner that timeframe under paragraph (c)(4) of
accounts for Arctic OCS conditions and this section for completion of relief
how such activities will be managed well operations.
and overseen as an integrated endeav-
or. [76 FR 64623, Oct. 18, 2011, as amended at 81
(2) Ice and weather management. A de- FR 46565, July 15, 2016]
scription of your weather and ice fore-
§ 550.221 What environmental moni-
casting and management plans for all toring information must accompany
phases of your exploratory drilling ac- the EP?
tivities, including:
(i) A description of how you will re- The following environmental moni-
spond to and manage ice hazards and toring information, as applicable, must
weather events; accompany your EP:
(ii) Your ice and weather alert proce- (a) Monitoring systems. A description
dures; of any existing and planned monitoring
(iii) Your procedures and thresholds systems that are measuring, or will
for activating your ice and weather measure, environmental conditions or
management system(s); and will provide project-specific data or in-
(iv) Confirmation that you will oper- formation on the impacts of your ex-
ate ice and weather management and ploration activities.
alert systems continuously throughout (b) Incidental takes. If there is reason
the planned operations, including mo- to believe that protected species may
bilization and demobilization oper- be incidentally taken by planned explo-
ations to and from the Arctic OCS. ration activities, you must describe
(3) Source control and containment how you will monitor for incidental
equipment capabilities. A general de- take of:
scription of how you will comply with (1) Threatened and endangered spe-
§ 250.471 of this title. cies listed under the ESA; and
(4) Deployment of a relief well rig. A (2) Marine mammals, as appropriate,
general description of how you will if you have not already received au-
comply with § 250.472 of this title, in- thorization for incidental take as may
cluding a description of the relief well be necessary under the MMPA.
rig, the anticipated staging area of the (c) Flower Garden Banks National Ma-
relief well rig, an estimate of the time rine Sanctuary (FGBNMS). If you pro-
it would take for the relief well rig to pose to conduct exploration activities
arrive at the site of a loss of well con- within the protective zones of the
trol, how you would drill a relief well if FGBNMS, a description of your provi-
necessary, and the approximate time- sions for monitoring the impacts of an
frame to complete relief well oper- oil spill on the environmentally sen-
ations. sitive resources at the FGBNMS.
379
§ 550.222 30 CFR Ch. V (7–1–18 Edition)
§ 550.222 What lease stipulations infor- of drilling fluids and chemical products
mation must accompany the EP? (see § 550.213(b) and (c)) you will trans-
A description of the measures you port from the onshore support facilities
took, or will take, to satisfy the condi- you will use to your drilling unit.
tions of lease stipulations related to (d) Solid and liquid wastes transpor-
your proposed exploration activities tation. A description of the transpor-
must accompany your EP. tation method and a brief description
of the composition, quantities, and des-
§ 550.223 What mitigation measures in- tination(s) of solid and liquid wastes
formation must accompany the EP? (see § 550.217(a)) you will transport from
(a) If you propose to use any meas- your drilling unit.
ures beyond those required by the regu- (e) Vicinity map. A map showing the
lations in this part to minimize or location of your proposed exploration
mitigate environmental impacts from activities relative to the shoreline. The
your proposed exploration activities, a map must depict the primary route(s)
description of the measures you will the support vessels and aircraft will
use must accompany your EP. use when traveling between the on-
(b) If there is reason to believe that shore support facilities you will use
protected species may be incidentally and your drilling unit.
taken by planned exploration activi-
§ 550.225 What information on the on-
ties, you must include mitigation shore support facilities you will use
measures designed to avoid or mini- must accompany the EP?
mize the incidental take of:
(1) Threatened and endangered spe- The following information on the on-
cies listed under the ESA; and shore support facilities you will use
(2) Marine mammals, as appropriate, must accompany your EP:
if you have not already received au- (a) General. A description of the on-
thorization for incidental take as may shore facilities you will use to provide
be necessary under the MMPA. supply and service support for your
proposed exploration activities (e.g.,
§ 550.224 What information on support service bases and mud company docks).
vessels, offshore vehicles, and air- (1) Indicate whether the onshore sup-
craft you will use must accompany port facilities are existing, to be con-
the EP? structed, or to be expanded.
The following information on the (2) If the onshore support facilities
support vessels, offshore vehicles, and are, or will be, located in areas not ad-
aircraft you will use must accompany jacent to the Western GOM, provide a
your EP: timetable for acquiring lands (includ-
(a) General. A description of the crew ing rights-of-way and easements) and
boats, supply boats, anchor handling constructing or expanding the facili-
vessels, tug boats, barges, ice manage- ties. Describe any State or Federal per-
ment vessels, other vessels, offshore ve- mits or approvals (dredging, filling,
hicles, and aircraft you will use to sup- etc.) that would be required for con-
port your exploration activities. The structing or expanding them.
description of vessels and offshore ve- (b) Air emissions. A description of the
hicles must estimate the storage ca- source, composition, frequency, and du-
pacity of their fuel tanks and the fre- ration of the air emissions (attrib-
quency of their visits to your drilling utable to your proposed exploration ac-
unit. tivities) likely to be generated by the
(b) Air emissions. A table showing the onshore support facilities you will use.
source, composition, frequency, and du- (c) Unusual solid and liquid wastes. A
ration of the air emissions likely to be description of the quantity, composi-
generated by the support vessels, off- tion, and method of disposal of any un-
shore vehicles, and aircraft you will usual solid and liquid wastes (attrib-
use that will operate within 25 miles of utable to your proposed exploration ac-
your drilling unit. tivities) likely to be generated by the
(c) Drilling fluids and chemical prod- onshore support facilities you will use.
ucts transportation. A description of the Unusual wastes are those wastes not
transportation method and quantities specifically addressed in the relevant
380
National Pollution Discharge Elimi- (2) Air and water quality;

nation System (NPDES) permit. (3) Benthic communities, marine
(d) Waste disposal. A description of mammals, sea turtles, coastal and ma-
the onshore facilities you will use to rine birds, fish and shellfish, and plant
store and dispose of solid and liquid life;
wastes generated by your proposed ex- (4) Threatened or endangered species
ploration activities (see § 550.217) and and their critical habitat as defined by
the types and quantities of such the Endangered Species Act of 1973;
wastes. (5) Sensitive biological resources or
§ 550.226 What Coastal Zone Manage- habitats such as essential fish habitat,
ment Act (CZMA) information must refuges, preserves, special management
accompany the EP? areas identified in coastal management
programs, sanctuaries, rookeries, and
The following CZMA information
calving grounds;
must accompany your EP:
(a) Consistency certification. A copy of (6) Archaeological resources;
your consistency certification under (7) Socioeconomic resources includ-
section 307(c)(3)(B) of the CZMA (16 ing employment, existing offshore and
U.S.C. 1456(c)(3)(B)) and 15 CFR coastal infrastructure (including major
930.76(d) stating that the proposed ex- sources of supplies, services, energy,
ploration activities described in detail and water), land use, subsistence re-
in this EP comply with (name of sources and harvest practices, recre-
State(s)) approved coastal management ation, recreational and commercial
program(s) and will be conducted in a fishing (including typical fishing sea-
manner that is consistent with such sons, location, and type), minority and
program(s); and lower income groups, and coastal zone
(b) Other information. ‘‘Information’’ management programs;
as required by 15 CFR 930.76(a) and 15 (8) Coastal and marine uses such as
CFR 930.58(a)(2)) and ‘‘Analysis’’ as re- military activities, shipping, and min-
quired by 15 CFR 930.58(a)(3). eral exploration or development; and
(9) Other resources, conditions, and
§ 550.227 What environmental impact activities identified by the Regional
analysis (EIA) information must ac- Supervisor.
company the EP?
(c) Environmental impacts. Your EIA
The following EIA information must must:
accompany your EP: (1) Analyze the potential direct and
(a) General requirements. Your EIA indirect impacts (including those from
must: accidents, cooling water intake struc-
(1) Assess the potential environ- tures, and those identified in relevant
mental impacts of your proposed explo- ESA biological opinions such as, but
ration activities; not limited to, those from noise, vessel
(2) Be project specific; and
collisions, and marine trash and debris)
(3) Be as detailed as necessary to as-
that your proposed exploration activi-
sist the Regional Supervisor in com-
ties will have on the identified re-
plying with the National Environ-
sources, conditions, and activities;
mental Policy Act (NEPA) of 1969 (42
U.S.C. 4321 et seq.) and other relevant (2) Analyze any potential cumulative
Federal laws such as the ESA and the impacts from other activities to those
MMPA. identified resources, conditions, and
(b) Resources, conditions, and activities. activities potentially impacted by your
Your EIA must describe those re- proposed exploration activities;
sources, conditions, and activities list- (3) Describe the type, severity, and
ed below that could be affected by your duration of these potential impacts and
proposed exploration activities, or that their biological, physical, and other
could affect the construction and oper- consequences and implications;
ation of facilities or structures, or the (4) Describe potential measures to
activities proposed in your EP. minimize or mitigate these potential
(1) Meteorology, oceanography, geol- impacts; and

ogy, and shallow geological or man- (5) Summarize the information you
made hazards; incorporate by reference.
381
§ 550.228 30 CFR Ch. V (7–1–18 Edition)
(d) Consultation. Your EIA must in- within 15 working days after the Re-
clude a list of agencies and persons gional Supervisor receives your EP and
with whom you consulted, or with its accompanying information. The Re-
whom you will be consulting, regarding gional Supervisor will not deem your
potential impacts associated with your EP submitted until you have corrected
proposed exploration activities. all problems or deficiencies identified
(e) References cited. Your EIA must in the notice.
include a list of the references that you (c) Deemed submitted notification. The
cite in the EIA. Regional Supervisor will notify you
when the EP is deemed submitted.
§ 550.228 What administrative informa-
tion must accompany the EP? § 550.232 What actions will BOEM take
The following administrative infor- after the EP is deemed submitted?
mation must accompany your EP: (a) State and CZMA consistency re-
(a) Exempted information description views. Within 2 working days after
(public information copies only). A de- deeming your EP submitted under
scription of the general subject matter § 550.231, the Regional Supervisor will
of the proprietary information that is use receipted mail or alternative meth-
included in the proprietary copies of od to send a public information copy of
your EP or its accompanying informa- the EP and its accompanying informa-
tion. tion to the following:
(b) Bibliography. (1) If you reference a (1) The Governor of each affected State.
previously submitted EP, DPP, DOCD, The Governor has 21 calendar days
study report, survey report, or other after receiving your deemed-submitted
material in your EP or its accom- EP to submit comments. The Regional
panying information, a list of the ref- Supervisor will not consider comments
erenced material; and received after the deadline.
(2) The location(s) where the Re- (2) The CZMA agency of each affected
gional Supervisor can inspect the cited State. The CZMA consistency review
referenced material if you have not period under section 307(c)(3)(B)(ii) of
submitted it. the CZMA (16 U.S.C. 1456(c)(3)(B)(ii))
and 15 CFR 930.78 begins when the
REVIEW AND DECISION PROCESS FOR THE State’s CZMA agency receives a copy
EP of your deemed-submitted EP, consist-
ency certification, and required nec-
§ 550.231 After receiving the EP, what essary data and information (see 15
will BOEM do? CFR 930.77(a)(1)).
(a) Determine whether deemed sub- (b) BOEM compliance review. The Re-
mitted. Within 15 working days after regional Supervisor will review the ex-
ceiving your proposed EP and its ac- ploration activities described in your
companying information, the Regional proposed EP to ensure that they con-
Supervisor will review your submission form to the performance standards in
and deem your EP submitted if: § 550.202.
(1) The submitted information, in- (c) BOEM environmental impact eval-
cluding the information that must ac- uation. The Regional Supervisor will
company the EP (refer to the list in evaluate the environmental impacts of
§ 550.212), fulfills requirements and is the activities described in your pro-
sufficiently accurate; posed EP and prepare environmental
(2) You have provided all needed ad- documentation under the National En-
ditional information (see § 550.201(b)); vironmental Policy Act (NEPA) (42
and U.S.C. 4321 et seq.) and the imple-
(3) You have provided the required menting regulations (40 CFR parts 1500
number of copies (see § 550.206(a)). through 1508).
(b) Identify problems and deficiencies. (d) Amendments. During the review of
If the Regional Supervisor determines your proposed EP, the Regional Super-
that you have not met one or more of visor may require you, or you may
the conditions in paragraph (a) of this elect, to change your EP. If you elect
section, the Regional Supervisor will to amend your EP, the Regional Super-
notify you of the problem or deficiency visor may determine that your EP, as
382
amended, is subject to the require- this section within 30 calendar days

ments of § 550.231. after the Regional Supervisor deems
your EP submitted under § 550.231, or
§ 550.233 What decisions will BOEM receives the last amendment to your
make on the EP and within what proposed EP, whichever occurs later.
timeframe? (b) BOEM decision. By the deadline in
(a) Timeframe. The Regional Super- paragraph (a) of this section, the Re-
visor will take one of the actions gional Supervisor will take one of the
shown in the table in paragraph (b) of following actions:
The regional If . . . And then . . .
supervisor will . . .
(1) Approve your EP, It complies with all applicable requirements, The Regional Supervisor will notify you in writing
of the decision and may require you to meet
certain conditions, including those to provide
monitoring information.
(2) Require you to modify The Regional Supervisor finds that it is incon- The Regional Supervisor will notify you in writing
your proposed EP, sistent with the lease, the Act, the regulations of the decision and describe the modifications
prescribed under the Act, or other Federal you must make to your proposed EP to ensure
laws, it complies with all applicable requirements.
(3) Disapprove your EP, Your proposed activities would probably cause (i) The Regional Supervisor will notify you in writ-
serious harm or damage to life (including fish ing of the decision and describe the reason(s)
or other aquatic life); property; any mineral (in for disapproving your EP.
areas leased or not leased); the National se- (ii) BOEM may cancel your lease and com-
curity or defense; or the marine, coastal, or pensate you under 43 U.S.C. 1334(a)(2)(C)
human environment; and you cannot modify and the implementing regulations in
your proposed activities to avoid such condi- §§ 550.182, 550.184, and 550.185 and 30
tion(s), CFR 556.77.
§ 550.234 How do I submit a modified § 550.235 If a State objects to the EP’s

EP or resubmit a disapproved EP, coastal zone consistency certifi-
and when will BOEM make a deci- cation, what can I do?
sion? If an affected State objects to the
(a) Modified EP. If the Regional Su- coastal zone consistency certification
pervisor requires you to modify your accompanying your proposed EP with-
proposed EP under § 550.233(b)(2), you in the timeframe prescribed in
must submit the modification(s) to the § 550.233(a) or § 550.234(c), you may do
Regional Supervisor in the same man- one of the following:
ner as for a new EP. You need submit (a) Amend your EP. Amend your EP
only information related to the pro- to accommodate the State’s objection
posed modification(s). and submit the amendment to the Re-
(b) Resubmitted EP. If the Regional gional Supervisor for approval. The
Supervisor disapproves your EP under amendment needs to only address in-
formation related to the State’s objec-
§ 550.233(b)(3), you may resubmit the
tion.
disapproved EP if there is a change in
(b) Appeal. Appeal the State’s objec-
the conditions that were the basis of
tion to the Secretary of Commerce
its disapproval. using the procedures in 15 CFR part
(c) BOEM review and timeframe. The 930, subpart H. The Secretary of Com-
Regional Supervisor will use the per- merce will either:
formance standards in § 550.202 to ei- (1) Grant your appeal by finding,
ther approve, require you to further under section 307(c)(3)(B)(iii) of the
modify, or disapprove your modified or CZMA (16 U.S.C. 1456(c)(3)(B)(iii)), that
resubmitted EP. The Regional Super- each activity described in detail in
visor will make a decision within 30 your EP is consistent with the objec-
calendar days after the Regional Su- tives of the CZMA, or is otherwise nec-
pervisor deems your modified or resub- essary in the interest of National secu-
mitted EP to be submitted, or receives rity; or
the last amendment to your modified (2) Deny your appeal, in which case
or resubmitted EP, whichever occurs you may amend your EP as described
later. in paragraph (a) of this section.
383
§ 550.241 30 CFR Ch. V (7–1–18 Edition)
(c) Withdraw your EP. Withdraw your a brief description of their important
EP if you decide not to conduct your safety and pollution prevention fea-
proposed exploration activities. tures, and a table indicating the type
and the estimated maximum quantity
CONTENTS OF DEVELOPMENT AND PRO- of fuels and oil that will be stored on
DUCTION PLANS (DPP) AND DEVELOP- the facility (see definition of ‘‘facility
MENT OPERATIONS COORDINATION DOC- (3)’’ under § 550.105).
UMENTS (DOCD) (e) Service fee. You must include pay-
ment of the service fee listed in
§ 550.241 What must the DPP or DOCD § 550.125.
include?
Your DPP or DOCD must include the § 550.242 What information must ac-
following: company the DPP or DOCD?
(a) Description, objectives, and sched- The following information must ac-
ule. A description, discussion of the ob- company your DPP or DOCD.
jectives, and tentative schedule (from (a) General information required by
start to completion) of the develop- § 550.243;
ment and production activities you (b) G&G information required by
propose to undertake. Examples of de- § 550.244;
velopment and production activities (c) Hydrogen sulfide information re-
include: quired by § 550.245;
(1) Development drilling; (d) Mineral resource conservation in-
(2) Well test flaring; formation required by § 550.246;
(3) Installation of production plat- (e) Biological, physical, and socio-
forms, satellite structures, subsea economic information required by
wellheads and manifolds, and lease § 550.247;
term pipelines (see definition at
(f) Solid and liquid wastes and dis-
§ 550.105); and
charges information and cooling water
(4) Installation of production facili-
intake information required by
ties and conduct of production oper-
§ 550.248;
ations.
(g) Air emissions information re-
(b) Location. The location and water
quired by § 550.249;
depth of each of your proposed wells
(h) Oil and hazardous substance spills
and production facilities. Include a
information required by § 550.250;
map showing the surface and bottom-
hole location and water depth of each (i) Alaska planning information re-
proposed well, the surface location of quired by § 550.251;
each production facility, and the loca- (j) Environmental monitoring infor-
tions of all associated drilling unit and mation required by § 550.252;
construction barge anchors. (k) Lease stipulations information
(c) Drilling unit. A description of the required by § 550.253;
drilling unit and associated equipment (l) Mitigation measures information
you will use to conduct your proposed required by § 550.254;
development drilling activities. Include (m) Decommissioning information re-
a brief description of its important quired by § 550.255;
safety and pollution prevention fea- (n) Related facilities and operations
tures, and a table indicating the type information required by § 550.256;
and the estimated maximum quantity (o) Support vessels and aircraft infor-
of fuels and oil that will be stored on mation required by § 550.257;
the facility (see definition of ‘‘facility (p) Onshore support facilities infor-
(3)’’ under § 550.105). mation required by § 550.258;
(d) Production facilities. A description (q) Sulphur operations information
of the production platforms, satellite required by § 550.259;
structures, subsea wellheads and mani- (r) Coastal zone management infor-
folds, lease term pipelines (see defini- mation required by § 550.260;
tion at § 550.105), production facilities, (s) Environmental impact analysis
umbilicals, and other facilities you will information required by § 550.261; and
use to conduct your proposed develop- (t) Administrative information re-
ment and production activities. Include quired by § 550.262.
384
§ 550.243 What general information (f) Bonds, oil spill financial responsi-
must accompany the DPP or bility, and well control statements. State-
DOCD? ments attesting that:
The following general information (1) The activities and facilities pro-
must accompany your DPP or DOCD: posed in your DPP or DOCD are or will
(a) Applications and permits. A listing, be covered by an appropriate bond
including filing or approval status, of under 30 CFR part 556, subpart I;
the Federal, State, and local applica- (2) You have demonstrated or will
demonstrate oil spill financial respon-
tion approvals or permits you must ob-
sibility for facilities proposed in your
tain to carry out your proposed devel-
DPP or DOCD, according to 30 CFR
opment and production activities.
part 553; and
(b) Drilling fluids. A table showing the
(3) You have or will have the finan-
projected amount, discharge rate, and
cial capability to drill a relief well and
chemical constituents for each type
conduct other emergency well control
(i.e., water based, oil based, synthetic
operations.
based) of drilling fluid you plan to use
(g) Suspensions of production or oper-
to drill your proposed development
ations. A brief discussion of any suspen-
wells.
sions of production or suspensions of
(c) Production. The following produc- operations that you anticipate may be
tion information: necessary in the course of conducting
(1) Estimates of the average and peak your activities under the DPP or
rates of production for each type of DOCD.
production and the life of the res- (h) Blowout scenario. A scenario for a
ervoir(s) you intend to produce; and potential blowout of the proposed well
(2) The chemical and physical charac- in your DPP or DOCD that you expect
teristics of the produced oil (see defini- will have the highest volume of liquid
tion under 30 CFR 254.6) that you will hydrocarbons. Include the estimated
handle or store at the facilities you flow rate, total volume, and maximum
will use to conduct your proposed de- duration of the potential blowout.
velopment and production activities. Also, discuss the potential for the well
(d) Chemical products. A table showing to bridge over, the likelihood for sur-
the name and brief description, quan- face intervention to stop the blowout,
tities to be stored, storage method, and the availability of a rig to drill a relief
rates of usage of the chemical products well, and rig package constraints. Esti-
you will use to conduct your proposed mate the time it would take to drill a
development and production activities. relief well.
You need list only those chemical prod- (i) Contact. The name, mailing ad-
ucts you will store or use in quantities dress, (e-mail address if available), and
greater than the amounts defined as telephone number of the person with
Reportable Quantities in 40 CFR part whom the Regional Supervisor and the
302, or amounts specified by the Re- affected State(s) can communicate
gional Supervisor. about your DPP or DOCD.
(e) New or unusual technology. A de-
scription and discussion of any new or § 550.244 What geological and geo-
unusual technology (see definition physical (G&G) information must
under § 550.200) you will use to carry accompany the DPP or DOCD?
out your proposed development and The following G&G information must
production activities. In the public in- accompany your DPP or DOCD:
formation copies of your DPP or (a) Geological description. A geological
DOCD, you may exclude any propri- description of the prospect(s).
etary information from this descrip- (b) Structure contour maps. Current
tion. In that case, include a brief dis- structure contour maps (depth-based,
cussion of the general subject matter expressed in feet subsea) showing
of the omitted information. If you will depths of expected productive forma-
not use any new or unusual technology tions and the locations of proposed
to carry out your proposed develop- wells.

ment and production activities, include (c) Two dimensional (2–D) or three-di-
a statement so indicating. mensional (3–D) seismic lines. Copies of
385
§ 550.245 30 CFR Ch. V (7–1–18 Edition)
migrated and annotated 2–D or 3–D § 550.245 What hydrogen sulfide (H 2S)
seismic lines (with depth scale) inter- information must accompany the
secting at or near your proposed well DPP or DOCD?
locations. You are not required to con- The following H2S information, as ap-
duct both 2–D and 3–D seismic surveys plicable, must accompany your DPP or
if you choose to conduct only one type DOCD:
of survey. If you have conducted both (a) Concentration. The estimated con-
types of surveys, the Regional Super- centration of any H2S you might en-
visor may instruct you to submit the counter or handle while you conduct
results of both surveys. You must in- your proposed development and produc-
terpret and display this information. tion activities.
Provide this information as an enclo- (b) Classification. Under 30 CFR
sure to only one proprietary copy of 250.490(c), a request that the Regional
your DPP or DOCD. Supervisor classify the area of your
(d) Geological cross-sections. Inter- proposed development and production
preted geological cross-sections show- activities as either H2S absent, H2S
ing the depths of expected productive present, or H2S unknown. Provide suffi-
formations. cient information to justify your re-
(e) Shallow hazards report. A shallow quest.
hazards report based on information (c) H 2S Contingency Plan. If you re-
obtained from a high-resolution geo- quest that the Regional Supervisor
physical survey, or a reference to such classify the area of your proposed de-
report if you have already submitted it velopment and production activities as
to the Regional Supervisor. either H2S present or H2S unknown, an
(f) Shallow hazards assessment. For H2S Contingency Plan prepared under
each proposed well, an assessment of 30 CFR 250.490(f), or a reference to an
any seafloor and subsurface geologic approved or submitted H2S Contin-
and manmade features and conditions gency Plan that covers the proposed
that may adversely affect your pro- development and production activities.
(d) Modeling report. (1) If you have de-
posed drilling operations.
termined or estimated that the con-
(g) High resolution seismic lines. A copy
centration of any H2S you may encoun-
of the high-resolution survey line clos-
ter or handle while you conduct your
est to each of your proposed well loca-
development and production activities
tions. Because of its volume, provide
will be greater than 500 parts per mil-
this information as an enclosure to
lion (ppm), you must:
only one proprietary copy of your DPP (i) Model a potential worst case H2S
or DOCD. You are not required to pro- release from the facilities you will use
vide this information if the surface lo- to conduct your proposed development
cation of your proposed well has been and production activities; and
approved in a previously submitted EP, (ii) Include a modeling report or
DPP, or DOCD. modeling results, or a reference to such
(h) Stratigraphic column. A general- report or results if you have already
ized biostratigraphic/lithostratigraphic submitted it to the Regional Super-
column from the surface to the total visor.
depth of each proposed well. (2) The analysis in the modeling re-
(i) Time-versus-depth chart. A seismic port must be specific to the particular
travel time-versus-depth chart based site of your development and produc-
on the appropriate velocity analysis in tion activities, and must consider any
the area of interpretation and speci- nearby human-occupied OCS facilities,
fying the geodetic datum. shipping lanes, fishery areas, and other
(j) Geochemical information. A copy of points where humans may be subject to
any geochemical reports you used or potential exposure from an H2S release
generated. from your proposed activities.
(k) Future G&G activities. A brief de- (3) If any H2S emissions are projected
scription of the G&G explorations and to affect an onshore location in con-
development G&G activities that you centrations greater than 10 ppm, the
may conduct for lease or unit purposes modeling analysis must be consistent
after your DPP or DOCD is approved. with the EPA’s risk management plan
386
methodologies outlined in 40 CFR part (c) Socioeconomic study reports. Socio-

68. economic information related to your
proposed development and production
§ 550.246 What mineral resource con- activities.
servation information must accom-
pany the DPP or DOCD? § 550.248 What solid and liquid wastes
The following mineral resource con- and discharges information and
servation information, as applicable, cooling water intake information
must accompany your DPP or DOCD: must accompany the DPP or
(a) Technology and reservoir engineer- DOCD?
ing practices and procedures. A descrip- The following solid and liquid wastes
tion of the technology and reservoir and discharges information and cooling
engineering practices and procedures water intake information must accom-
you will use to increase the ultimate pany your DPP or DOCD:
recovery of oil and gas (e.g., secondary, (a) Projected wastes. A table providing
tertiary, or other enhanced recovery the name, brief description, projected
practices). If you will not use enhanced quantity, and composition of solid and
recovery practices initially, provide an liquid wastes (such as spent drilling
explanation of the methods you consid- fluids, drill cuttings, trash, sanitary
ered and the reasons why you are not and domestic wastes, produced waters,
using them. and chemical product wastes) likely to
(b) Technology and recovery practices be generated by your proposed develop-
and procedures. A description of the ment and production activities. De-
technology and recovery practices and scribe:
procedures you will use to ensure opti- (1) The methods you used for deter-
mum recovery of oil and gas or sul- mining this information; and
phur. (2) Your plans for treating, storing,
(c) Reservoir development. A discussion and downhole disposal of these wastes
of exploratory well results, other res- at your facility location(s).
ervoir data, proposed well spacing, (b) Projected ocean discharges. If any
completion methods, and other rel- of your solid and liquid wastes will be
evant well plan information. discharged overboard or are planned
§ 550.247 What biological, physical, discharges from manmade islands:
and socioeconomic information (1) A table showing the name, pro-
must accompany the DPP or jected amount, and rate of discharge
DOCD? for each waste type; and
If you obtain the following informa- (2) A description of the discharge
tion in developing your DPP or DOCD, method (such as shunting through a
or if the Regional Supervisor requires downpipe, adding to a produced water
you to obtain it, you must include a re- stream, etc.) you will use.
port, or the information obtained, or a (c) National Pollutant Discharge Elimi-
reference to such a report or informa- nation System (NPDES) permit. (1) A dis-
tion if you have already submitted it cussion of how you will comply with
to the Regional Supervisor, as accom- the provisions of the applicable general
panying information: NPDES permit that covers your pro-
(a) Biological environment reports. posed development and production ac-
Site-specific information on tivities; or
chemosynthetic communities, feder- (2) A copy of your application for an
ally listed threatened or endangered individual NPDES permit. Briefly de-
species, marine mammals protected scribe the major discharges and meth-
under the MMPA, sensitive underwater ods you will use for compliance.
features, marine sanctuaries, critical (d) Modeling report. A modeling report
habitat designated under the ESA, or or the modeling results (if you modeled
other areas of biological concern. the discharges of your projected solid
(b) Physical environment reports. Site- or liquid wastes in developing your
specific meteorological, physical DPP or DOCD), or a reference to such
oceanographic, geotechnical reports, or report or results if you have already

archaeological reports (if required submitted it to the Regional Super-
under § 550.194). visor.
387
§ 550.249 30 CFR Ch. V (7–1–18 Edition)
(e) Projected cooling water intake. A (4) You must base the projected emis-
table for each cooling water intake sions on the maximum rated capacity
structure likely to be used by your proof the equipment and the maximum
posed development and production ac- throughput of the facility you will use
tivities that includes a brief descrip- to conduct your proposed development
tion of the cooling water intake struc- and production activities under its
ture, daily water intake rate, water in- physical and operational design.
take through-screen velocity, percent- (5) If the specific drilling unit has not
age of water intake used for cooling yet been determined, you must use the
water, mitigation measures for reduc- maximum emission estimates for the
ing impingement and entrainment of type of drilling unit you will use.
aquatic organisms, and biofouling pre-
(b) Emission reduction measures. A de-
vention measures.
scription of any proposed emission re-
§ 550.249 What air emissions informa- duction measures, including the af-
tion must accompany the DPP or fected source(s), the emission reduc-
DOCD? tion control technologies or proce-
The following air emissions informa- dures, the quantity of reductions to be
tion, as applicable, must accompany achieved, and any monitoring system
your DPP or DOCD: you propose to use to measure emis-
(a) Projected emissions. Tables showing sions.
the projected emissions of sulphur di- (c) Processes, equipment, fuels, and
oxide (SO2), particulate matter in the combustibles. A description of processes,
form of PM10 and PM2.5 when applica- processing equipment, combustion
ble, nitrogen oxides (NOX), carbon mon- equipment, fuels, and storage units.
oxide (CO), and volatile organic com- You must include the frequency, dura-
pounds (VOC) that will be generated by tion, and maximum burn rate of any
your proposed development and produc- flaring activity.
tion activities. (d) Distance to shore. Identification of
(1) For each source on or associated the distance of the site of your pro-
with the facility you will use to con- posed development and production ac-
duct your proposed development and tivities from the mean high water
production activities, you must list: mark (mean higher high water mark on
(i) The projected peak hourly emis- the Pacific coast) of the adjacent
sions; State.
(ii) The total annual emissions in
(e) Non-exempt facilities. A description
tons per year;
of how you will comply with § 550.303
(iii) Emissions over the duration of
when the projected emissions of SO2,
the proposed development and produc-
PM, NOX, CO, or VOC that will be gen-
tion activities;
erated by your proposed development
(iv) The frequency and duration of
emissions; and and production activities are greater
(v) The total of all emissions listed in than the respective emission exemp-
paragraph (a)(1)(i) through (iv) of this tion amounts ‘‘E’’ calculated using the
section. formulas in § 550.303(d). When BOEM re-
(2) If your proposed production and quires air quality modeling, you must
development activities would result in use the guidelines in appendix W of 40
an increase in the emissions of an air CFR part 51 with a model approved by
pollutant from your facility to an the Director. Submit the best available
amount greater than the amount speci- meteorological information and data
fied in your previously approved DPP consistent with the model(s) used.
or DOCD, you must show the revised (f) Modeling report. A modeling report
emission rates for each source as well or the modeling results (if § 550.303 re-
as the incremental change for each quires you to use an approved air qual-
source. ity model to model projected air emis-
(3) You must provide the basis for all sions in developing your DPP or
calculations, including engine size and DOCD), or a reference to such report or

rating, and applicable operational in- results if you have already submitted
formation. it to the Regional Supervisor.
388
§ 550.250 What oil and hazardous sub- (a) Emergency plans. A description of
stance spills information must ac- your emergency plans to respond to a
company the DPP or DOCD? blowout, loss or disablement of a drill-
The following information regarding ing unit, and loss of or damage to sup-
potential spills of oil (see definition port craft; and
under 30 CFR 254.6) and hazardous sub- (b) Critical operations and curtailment
stances (see definition under 40 CFR procedures. Critical operations and cur-
part 116), as applicable, must accom- tailment procedures for your develop-
pany your DPP or DOCD: ment and production activities. The
(a) Oil spill response planning. The ma- procedures must identify ice condi-
terial required under paragraph (a)(1) tions, weather, and other constraints
or (a)(2) of this section: under which the development and pro-
(1) An Oil Spill Response Plan duction activities will either be cur-
(OSRP) for the facilities you will use to tailed or not proceed.
conduct your proposed development
and production activities prepared ac- § 550.252 What environmental moni-
cording to the requirements of 30 CFR toring information must accompany
part 254, subpart B; or the DPP or DOCD?
(2) Reference to your approved re- The following environmental moni-
gional OSRP (see 30 CFR 254.3) to in- toring information, as applicable, must
clude: accompany your DPP or DOCD:
(i) A discussion of your regional (a) Monitoring systems. A description
OSRP; of any existing and planned monitoring
(ii) The location of your primary oil systems that are measuring, or will
spill equipment base and staging area; measure, environmental conditions or
(iii) The name(s) of your oil spill re- will provide project-specific data or in-
moval organization(s) for both equip- formation on the impacts of your de-
ment and personnel; velopment and production activities.
(iv) The calculated volume of your (b) Incidental takes. If there is reason
worst case discharge scenario (see 30 to believe that protected species may
CFR 254.26(a)), and a comparison of the be incidentally taken by planned devel-
appropriate worst case discharge sce- opment and production activities, you
nario in your approved regional OSRP must describe how you will monitor for
with the worst case discharge scenario incidental take of:
that could result from your proposed (1) Threatened and endangered spe-
development and production activities;
cies listed under the ESA; and
and
(2) Marine mammals, as appropriate,
(v) A description of the worst case oil
if you have not already received au-
spill scenario that could result from
thorization for incidental take of ma-
your proposed development and produc-
tion activities (see 30 CFR 254.26(b), (c), rine mammals as may be necessary
(d), and (e)). under the MMPA.
(b) Modeling report. If you model a po- (c) Flower Garden Banks National Ma-
tential oil or hazardous substance spill rine Sanctuary (FGBNMS). If you pro-
in developing your DPP or DOCD, a pose to conduct development and pro-
modeling report or the modeling reduction activities within the protec-
sults, or a reference to such report or tive zones of the FGBNMS, a descrip-
results if you have already submitted tion of your provisions for monitoring
it to the Regional Supervisor. the impacts of oil spill on the environ-
mentally sensitive resources of the
§ 550.251 If I propose activities in the FGBNMS.
Alaska OCS Region, what planning
information must accompany the § 550.253 What lease stipulations infor-
DPP? mation must accompany the DPP or
DOCD?
If you propose development and pro-
duction activities in the Alaska OCS A description of the measures you

Region, the following planning infor- took, or will take, to satisfy the condi-
mation must accompany your DPP: tions of lease stipulations related to
389
§ 550.254 30 CFR Ch. V (7–1–18 Edition)
your proposed development and produc- you will use to transport your produc-
tion activities must accompany your tion to shore, including:
DPP or DOCD. (1) Routes of any new pipelines;
(2) Information concerning barges
§ 550.254 What mitigation measures in- and shuttle tankers, including the stor-
formation must accompany the DPP age capacity of the transport vessel(s),
or DOCD?
and the number of transfers that will
(a) If you propose to use any meas- take place per year;
ures beyond those required by the regu- (3) Information concerning any inter-
lations in this part to minimize or mediate storage or processing facili-
mitigate environmental impacts from ties;
your proposed development and produc- (4) An estimate of the quantities of
tion activities, a description of the oil, gas, or sulphur to be transported
measures you will use must accompany from your production facilities; and
your DPP or DOCD. (5) A description and location of the
(b) If there is reason to believe that primary onshore terminal.
protected species may be incidentally
taken by planned development and pro- § 550.257 What information on the sup-
duction activities, you must include port vessels, offshore vehicles, and
mitigation measures designed to avoid aircraft you will use must accom-
or minimize that incidental take of: pany the DPP or DOCD?
(1) Threatened and endangered spe- The following information on the
cies listed under the ESA; and support vessels, offshore vehicles, and
(2) Marine mammals, as appropriate, aircraft you will use must accompany
if you have not already received au- your DPP or DOCD:
thorization for incidental take as may (a) General. A description of the crew
be necessary under the MMPA. boats, supply boats, anchor handling
§ 550.255 What decommissioning infor- vessels, tug boats, barges, ice manage-
mation must accompany the DPP or ment vessels, other vessels, offshore ve-
DOCD? hicles, and aircraft you will use to sup-
A brief description of how you intend port your development and production
to decommission your wells, platforms, activities. The description of vessels
pipelines, and other facilities, and and offshore vehicles must estimate
clear your site(s) must accompany the storage capacity of their fuel tanks
your DPP or DOCD. and the frequency of their visits to the
facilities you will use to conduct your
§ 550.256 What related facilities and proposed development and production
operations information must ac- activities.
company the DPP or DOCD? (b) Air emissions. A table showing the
The following information regarding source, composition, frequency, and du-
facilities and operations directly re- ration of the air emissions likely to be
lated to your proposed development generated by the support vessels, off-
and production activities must accom- shore vehicles, and aircraft you will
pany your DPP or DOCD. use that will operate within 25 miles of
(a) OCS facilities and operations. A de- the facilities you will use to conduct
scription and location of any of the fol- your proposed development and produc-
lowing that directly relate to your pro- tion activities.
posed development and production ac- (c) Drilling fluids and chemical prod-
tivities: ucts transportation. A description of the
(1) Drilling units; transportation method and quantities
(2) Production platforms; of drilling fluids and chemical products
(3) Right-of-way pipelines (including (see § 550.243(b) and (d)) you will trans-
those that transport chemical products port from the onshore support facilities
and produced water); and you will use to the facilities you will
(4) Other facilities and operations lo- use to conduct your proposed develop-
cated on the OCS (regardless of owner- ment and production activities.
ship). (d) Solid and liquid wastes transpor-

(b) Transportation system. A discus- tation. A description of the transpor-
sion of the transportation system that tation method and a brief description
390
of the composition, quantities, and des- store and dispose of solid and liquid
tination(s) of solid and liquid wastes wastes generated by your proposed de-
(see § 550.248(a)) you will transport from velopment and production activities
the facilities you will use to conduct (see § 550.248(a)) and the types and
your proposed development and produc- quantities of such wastes.
tion activities.
(e) Vicinity map. A map showing the § 550.259 What sulphur operations in-
location of your proposed development formation must accompany the DPP
or DOCD?
and production activities relative to
the shoreline. The map must depict the If you are proposing to conduct sul-
primary route(s) the support vessels phur development and production ac-
and aircraft will use when traveling be- tivities, the following information
tween the onshore support facilities must accompany your DPP or DOCD:
you will use and the facilities you will (a) Bleedwater. A discussion of the
use to conduct your proposed develop- bleedwater that will be generated by
ment and production activities. your proposed sulphur activities, in-
cluding the measures you will take to
§ 550.258 What information on the on- mitigate the potential toxic or thermal
shore support facilities you will use impacts on the environment caused by
must accompany the DPP or the discharge of bleedwater.
DOCD?
(b) Subsidence. An estimate of the de-
The following information on the on- gree of subsidence expected at various
shore support facilities you will use stages of your sulphur development
must accompany your DPP or DOCD: and production activities, and a de-
(a) General. A description of the on- scription of the measures you will take
shore facilities you will use to provide to mitigate the effects of subsidence on
supply and service support for your existing or potential oil and gas pro-
proposed development and production duction, production platforms, and pro-
activities (e.g., service bases and mud duction facilities, and to protect the
company docks). environment.
(1) Indicate whether the onshore sup-
port facilities are existing, to be con- § 550.260 What Coastal Zone Manage-
structed, or to be expanded; and ment Act (CZMA) information must
(2) For DPPs only, provide a time- accompany the DPP or DOCD?
table for acquiring lands (including The following CZMA information
rights-of-way and easements) and con- must accompany your DPP or DOCD:
structing or expanding any of the on- (a) Consistency certification. A copy of
shore support facilities. your consistency certification under
(b) Air emissions. A description of the section 307(c)(3)(B) of the CZMA (16
source, composition, frequency, and du- U.S.C. 1456(c)(3)(B)) and 15 CFR 930.76(c)
ration of the air emissions (attrib- stating that the proposed development
utable to your proposed development and production activities described in
and production activities) likely to be detail in this DPP or DOCD comply
generated by the onshore support fa- with (name of State(s)) approved coast-
cilities you will use. al management program(s) and will be
(c) Unusual solid and liquid wastes. A conducted in a manner that is con-
description of the quantity, composi- sistent with such program(s); and
tion, and method of disposal of any un- (b) Other information. ‘‘Information’’
usual solid and liquid wastes (attrib- as required by 15 CFR 930.76(a) and 15
utable to your proposed development CFR 930.58(a)(2)) and ‘‘Analysis’’ as re-
and production activities) likely to be quired by 15 CFR 930.58(a)(3).
generated by the onshore support fa-
cilities you will use. Unusual wastes § 550.261 What environmental impact
are those wastes not specifically ad- analysis (EIA) information must ac-
dressed in the relevant National Pollu- company the DPP or DOCD?
tion Discharge Elimination System The following EIA information must
(NPDES) permit. accompany your DPP or DOCD:

(d) Waste disposal. A description of (a) General requirements. Your EIA
the onshore facilities you will use to must:
391
§ 550.262 30 CFR Ch. V (7–1–18 Edition)
(1) Assess the potential environ- (c) Environmental impacts. Your EIA
mental impacts of your proposed devel- must:
opment and production activities; (1) Analyze the potential direct and
(2) Be project specific; and indirect impacts (including those from
(3) Be as detailed as necessary to as- accidents, cooling water intake struc-
sist the Regional Supervisor in com- tures, and those identified in relevant
plying with the NEPA of 1969 (42 U.S.C. ESA biological opinions such as, but
4321 et seq.) and other relevant Federal not limited to, those from noise, vessel
laws such as the ESA and the MMPA. collisions, and marine trash and debris)
(b) Resources, conditions, and activities. that your proposed development and
Your EIA must describe those reproduction activities will have on the
sources, conditions, and activities list- identified resources, conditions, and
ed below that could be affected by your activities;
proposed development and production (2) Describe the type, severity, and
activities, or that could affect the con- duration of these potential impacts and
struction and operation of facilities or their biological, physical, and other
structures or the activities proposed in consequences and implications;
your DPP or DOCD. (3) Describe potential measures to
(1) Meteorology, oceanography, geol- minimize or mitigate these potential
ogy, and shallow geological or man- impacts;
made hazards;
(4) Describe any alternatives to your
(2) Air and water quality;
proposed development and production
(3) Benthic communities, marine
activities that you considered while de-
mammals, sea turtles, coastal and ma-
veloping your DPP or DOCD, and com-
rine birds, fish and shellfish, and plant
pare the potential environmental im-
life;
pacts; and
(4) Threatened or endangered species
and their critical habitat; (5) Summarize the information you
(5) Sensitive biological resources or incorporate by reference.
habitats such as essential fish habitat, (d) Consultation. Your EIA must in-
refuges, preserves, special management clude a list of agencies and persons
areas identified in coastal management with whom you consulted, or with
programs, sanctuaries, rookeries, and whom you will be consulting, regarding
calving grounds; potential impacts associated with your
(6) Archaeological resources; proposed development and production
(7) Socioeconomic resources (includ- activities.
ing the approximate number, timing, (e) References cited. Your EIA must
and duration of employment of persons include a list of the references that you
engaged in onshore support and con- cite in the EIA.
struction activities), population (in-
cluding the approximate number of § 550.262 What administrative informa-
tion must accompany the DPP or
people and families added to local on- DOCD?
shore areas), existing offshore and on-
shore infrastructure (including major The following administrative infor-
sources of supplies, services, energy, mation must accompany your DPP or
and water), types of contractors or ven- DOCD:
dors that may place a demand on local (a) Exempted information description
goods and services, land use, subsist- (public information copies only). A de-
ence resources and harvest practices, scription of the general subject matter
recreation, recreational and commer- of the proprietary information that is
cial fishing (including seasons, loca- included in the proprietary copies of
tion, and type), minority and lower in- your DPP or DOCD or its accom-
come groups, and CZMA programs; panying information.
(8) Coastal and marine uses such as (b) Bibliography. (1) If you reference a
military activities, shipping, and min- previously submitted EP, DPP, DOCD,
eral exploration or development; and study report, survey report, or other
(9) Other resources, conditions, and material in your DPP or DOCD or its
activities identified by the Regional accompanying information, a list of
Supervisor. the referenced material; and
392
(2) The location(s) where the Re- DPP or DOCD to submit comments and
gional Supervisor can inspect the cited recommendations. The Regional Super-
referenced material if you have not visor will not consider comments and
submitted it. recommendations received after the
deadline.
REVIEW AND DECISION PROCESS FOR THE (2) The executive of any affected local
DPP OR DOCD government who requests a copy. The ex-
ecutive of any affected local govern-
§ 550.266 After receiving the DPP or
DOCD, what will BOEM do? ment has 60 calendar days after receipt
of your deemed-submitted DPP or
(a) Determine whether deemed sub- DOCD to submit comments and rec-
mitted. Within 25 working days after re- ommendations. The Regional Super-
ceiving your proposed DPP or DOCD visor will not consider comments and
and its accompanying information, the recommendations received after the
Regional Supervisor will deem your deadline. The executive of any affected
DPP or DOCD submitted if: local government must forward all
(1) The submitted information, in- comments and recommendations to the
cluding the information that must ac- respective Governor before submitting
company the DPP or DOCD (refer to them to the Regional Supervisor.
the list in § 550.242), fulfills require-
(3) The CZMA agency of each affected
ments and is sufficiently accurate;
State. The CZMA consistency review
(2) You have provided all needed ad-
period under section 307(c)(3)(B)(ii) of
ditional information (see § 550.201(b));
the CZMA (16 U.S.C.1456(c)(3)(B)(ii))
and
and 15 CFR 930.78 begins when the
(3) You have provided the required
States CZMA agency receives a copy of
number of copies (see § 550.206(a)).
(b) Identify problems and deficiencies. your deemed-submitted DPP or DOCD,
If the Regional Supervisor determines consistency certification, and required
that you have not met one or more of necessary data/information (see 15 CFR
the conditions in paragraph (a) of this 930.77(a)(1)).
section, the Regional Supervisor will (b) General public. Within 2 working
notify you of the problem or deficiency days after the Regional Supervisor
within 25 working days after the Re- deems your DPP or DOCD submitted
gional Supervisor receives your DPP or under § 550.266, the Regional Supervisor
DOCD and its accompanying informa- will make a public information copy of
tion. The Regional Supervisor will not the DPP or DOCD and its accom-
deem your DPP or DOCD submitted panying information available for re-
until you have corrected all problems view to any appropriate interstate re-
or deficiencies identified in the notice. gional entity and the public at the ap-
(c) Deemed submitted notification. The propriate BOEM Regional Public Infor-
Regional Supervisor will notify you mation Office. Any interested Federal
when your DPP or DOCD is deemed agency or person may submit com-
submitted. ments and recommendations to the Re-
gional Supervisor. Comments and rec-
§ 550.267 What actions will BOEM take ommendations must be received by the
after the DPP or DOCD is deemed Regional Supervisor within 60 calendar
submitted? days after the DPP or DOCD including
(a) State, local government, CZMA con- its accompanying information is made
sistency, and other reviews. Within 2 available.
working days after the Regional Super- (c) BOEM compliance review. The Re-
visor deems your DPP or DOCD sub- gional Supervisor will review the de-
mitted under § 550.266, the Regional Su- velopment and production activities in
pervisor will use receipted mail or al- your proposed DPP or DOCD to ensure
ternative method to send a public in- that they conform to the performance
formation copy of the DPP or DOCD standards in § 550.202.
and its accompanying information to (d) Amendments. During the review of
the following: your proposed DPP or DOCD, the Re-
(1) The Governor of each affected State. gional Supervisor may require you, or
The Governor has 60 calendar days you may elect, to change your DPP or
after receiving your deemed-submitted DOCD. If you elect to amend your DPP
393
§ 550.268 30 CFR Ch. V (7–1–18 Edition)
or DOCD, the Regional Supervisor may (c) Draft EIS. The Regional Super-
determine that your DPP or DOCD, as visor will send copies of the draft EIS
amended, is subject to the require- to the Governor of each affected State
ments of § 550.266. and to the executive of each affected
local government who requests a copy.
§ 550.268 How does BOEM respond to Additionally, when BOEM prepares a
recommendations?
DPP EIS, and the Federally-approved
(a) Governor. The Regional Supervisor CZMA program for an affected State
will accept those recommendations requires a DPP NEPA document for use
from the Governor that provide a rea- in determining consistency, the Re-
sonable balance between the National gional Supervisor will forward a copy
interest and the well-being of the citi- of the draft EIS to the State’s CZMA
zens of each affected State. The Re- agency. The Regional Supervisor will
gional Supervisor will explain in writ- also make copies of the draft EIS avail-
ing to the Governor the reasons for re- able to any appropriate Federal agen-
jecting any of his or her recommenda- cy, interstate regional entity, and the
tions. public.
(b) Local governments and the public.
The Regional Supervisor may accept § 550.270 What decisions will BOEM
recommendations from the executive make on the DPP or DOCD and
of any affected local government or the within what timeframe?
public.
(a) Timeframe. The Regional Super-
(c) Availability. The Regional Super-
visor will make all comments and rec- visor will act on your deemed-sub-
ommendations available to the public mitted DPP or DOCD as follows:
upon request. (1) The Regional Supervisor will
make a decision within 60 calendar
§ 550.269 How will BOEM evaluate the days after the latest of the day that:
environmental impacts of the DPP (i) The comment period provided in
or DOCD? § 550.267(a)(1), (a)(2), and (b) closes;
The Regional Supervisor will evalu- (ii) The final EIS for a DPP is re-
ate the environmental impacts of the leased or adopted; or
activities described in your proposed (iii) The last amendment to your pro-
DPP or DOCD and prepare environ- posed DOCD is received by the Re-
mental documentation under the Na- gional Supervisor.
tional Environmental Policy Act (2) Notwithstanding paragraph (a)(1)
(NEPA) (42 U.S.C.4321 et seq.) and the of this section, BOEM will not approve
implementing regulations (40 CFR your DPP or DOCD until either:
parts 1500 through 1508).
(i) All affected States with approved
(a) Environmental impact statement
CZMA programs concur, or have been
(EIS) declaration. At least once in each
conclusively presumed to concur, with
OCS planning area (other than the
Western and Central GOM Planning your DPP or DOCD consistency certifi-
Areas), the Director will declare that cation under section 307(c)(3)(B)(i) and
the approval of a proposed DPP is a (ii) of the CZMA (16 U.S.C.
major Federal action, and BOEM will 1456(c)(3)(B)(i) and (ii)); or
prepare an EIS. (ii) The Secretary of Commerce has
(b) Leases or units in the vicinity. Be- made a finding authorized by section
fore or immediately after the Director 307(c)(3)(B)(iii) of the CZMA (16 U.S.C.
determines that preparation of an EIS 1456(c)(3)(B)(iii)) that each activity de-
is required, the Regional Supervisor scribed in the DPP or DOCD is con-
may require lessees and operators of sistent with the objectives of the
leases or units in the vicinity of the CZMA, or is otherwise necessary in the
proposed development and production interest of National security.
activities for which DPPs have not (b) BOEM decision. By the deadline in
been approved to submit information paragraph (a) of this section, the Re-
about preliminary plans for their gional Supervisor will take one of the
leases or units. following actions:
394
The regional supervisor will . . . If . . . And then . . .
(1) Approve your DPP or It complies with all applicable The Regional Supervisor will notify you in writing of the deci-
DOCD, requirements, sion and may require you to meet certain conditions, in-
cluding those to provide monitoring information.
(2) Require you to modify your It fails to make adequate pro- The Regional Supervisor will notify you in writing of the deci-
proposed DPP or DOCD, visions for safety, environ- sion and describe the modifications you must make to your
mental protection, or con- proposed DPP or DOCD to ensure it complies with all ap-
servation of natural re- plicable requirements.
sources or otherwise does
not comply with the lease,
the Act, the regulations pre-
scribed under the Act, or
other Federal laws,
(3) Disapprove your DPP or Any of the reasons in (i) The Regional Supervisor will notify you in writing of the de-
DOCD, § 550.271 apply, cision and describe the reason(s) for disapproving your
DPP or DOCD; and
(ii) BOEM may cancel your lease and compensate you under
43 U.S.C. 1351(h)(2)(C) and the implementing regulations
in §§ 550.183 through 550.185 and 30 CFR 556.77.
§ 550.271 For what reasons will BOEM makes a finding authorized by section
disapprove the DPP or DOCD? 307(c)(3)(B)(iii) of the CZMA (16 U.S.C.
The Regional Supervisor will dis- 1456(c)(3)(B)(iii)) that each activity de-
approve your proposed DPP or DOCD if scribed in your DPP or DOCD is con-
one of the four reasons in this section sistent with the objectives of the
applies: CZMA, or is otherwise necessary in the
(a) Non-compliance. The Regional Su- interest of National security. In that
pervisor determines that you have event, you do not need to resubmit
failed to demonstrate that you can your DPP or DOCD for approval under
comply with the requirements of the § 550.273(b).
Outer Continental Shelf Lands Act, as (c) National security or defense con-
amended (Act), implementing regula- flicts. Your proposed activities would
tions, or other applicable Federal laws. threaten National security or defense.
(b) No consistency concurrence. (1) An (d) Exceptional circumstances. The Re-
affected State has not yet issued a gional Supervisor determines because
final decision on your coastal zone con- of exceptional geological conditions,
sistency certification (see 15 CFR exceptional resource values in the ma-
930.78(a)); or rine or coastal environment, or other
(2) An affected State objects to your exceptional circumstances that all of
coastal zone consistency certification, the following apply:
and the Secretary of Commerce, under (1) Implementing your DPP or DOCD
section 307(c)(3)(B)(iii) of the CZMA (16 would cause serious harm or damage to
U.S.C. 1456(c)(3)(B)(iii)), has not found life (including fish and other aquatic
that each activity described in the life), property, any mineral deposits (in
DPP or DOCD is consistent with the areas leased or not leased), the Na-
objectives of the CZMA or is otherwise tional security or defense, or the ma-
necessary in the interest of National rine, coastal, or human environment;
security. (2) The threat of harm or damage will
(3) If the Regional Supervisor dis- not disappear or decrease to an accept-
approved your DPP or DOCD for the able extent within a reasonable period
sole reason that an affected State ei- of time; and
ther has not yet issued a final decision (3) The advantages of disapproving
on, or has objected to, your coastal your DPP or DOCD outweigh the ad-
zone consistency certification (see vantages of development and produc-
paragraphs (b)(1) and (2) in this section.
tion), the Regional Supervisor will ap-
prove your DPP or DOCD upon receipt § 550.272 If a State objects to the DPP’s
of concurrence by the affected State, at or DOCD’s coastal zone consistency
the time concurrence of the affected certification, what can I do?

State is conclusively presumed, or If an affected State objects to the
when the Secretary of Commerce coastal zone consistency certification
395
§ 550.273 30 CFR Ch. V (7–1–18 Edition)
accompanying your proposed or dis- resubmitted DPP or DOCD. The Re-

approved DPP or DOCD, you may do gional Supervisor will make a decision
one of the following: within 60 calendar days after the Re-
(a) Amend or resubmit your DPP or gional Supervisor deems your modified
DOCD. Amend or resubmit your DPP or resubmitted DPP or DOCD to be
or DOCD to accommodate the State’s submitted, or receives the last amend-
objection and submit the amendment ment to your modified or resubmitted
or resubmittal to the Regional Super- DPP or DOCD, whichever occurs later.
visor for approval. The amendment or
resubmittal needs to only address in- POST-APPROVAL REQUIREMENTS FOR THE
formation related to the State’s objec- EP, DPP, AND DOCD
tions.
(b) Appeal. Appeal the State’s objec- § 550.280 How must I conduct activi-
tion to the Secretary of Commerce ties under the approved EP, DPP,
using the procedures in 15 CFR part or DOCD?
930, subpart H. The Secretary of Com- (a) Compliance. You must conduct all
merce will either: of your lease and unit activities ac-
(1) Grant your appeal by finding cording to your approved EP, DPP, or
under section 307(c)(3)(B)(iii) of the DOCD and any approval conditions. If
CZMA (16 U.S.C.1456(c)(3)(B)(iii)) that you fail to comply with your approved
each activity described in detail in EP, DPP, or DOCD:
your DPP or DOCD is consistent with (1) You may be subject to BOEM en-
the objectives of the CZMA, or is other- forcement action, including civil pen-
wise necessary in the interest of Na- alties; and
tional security; or (2) The lease(s) involved in your EP,
(2) Deny your appeal, in which case DPP, or DOCD may be forfeited or can-
you may amend or resubmit your DPP celled under 43 U.S.C. 1334(c) or (d). If
or DOCD, as described in paragraph (a) this happens, you will not be entitled
of this section. to compensation under § 550.185(b) and
(c) Withdraw your DPP or DOCD. 30 CFR 556.77.
Withdraw your DPP or DOCD if you de- (b) Emergencies. Nothing in this sub-
cide not to conduct your proposed depart or in your approved EP, DPP, or
velopment and production activities. DOCD relieves you of, or limits your
§ 550.273 How do I submit a modified responsibility to take appropriate
DPP or DOCD or resubmit a dis- measures to meet emergency situa-
approved DPP or DOCD? tions. In an emergency situation, the
Regional Supervisor may approve or
(a) Modified DPP or DOCD. If the Re-
require departures from your approved
gional Supervisor requires you to mod-
EP, DPP, or DOCD.
ify your proposed DPP or DOCD under
§ 550.270(b)(2), you must submit the § 550.281 What must I do to conduct
modification(s) to the Regional Super- activities under the approved EP,
visor in the same manner as for a new DPP, or DOCD?
DPP or DOCD. You need submit only
information related to the proposed (a) Approvals and permits. Before you
modification(s). conduct activities under your approved
(b) Resubmitted DPP or DOCD. If the EP, DPP, or DOCD you must obtain the
Regional Supervisor disapproves your following approvals and or permits, as
DPP or DOCD under § 550.270(b)(3), and applicable, from the District Manager
except as provided in § 550.271(b)(3), you or BSEE Regional Supervisor:
may resubmit the disapproved DPP or (1) Approval of applications for per-
DOCD if there is a change in the condi- mits to drill (APDs) (see 30 CFR
tions that were the basis of its dis- 250.410);
approval. (2) Approval of production safety sys-
(c) BOEM review and timeframe. The tems (see 30 CFR 250.800);
Regional Supervisor will use the per- (3) Approval of new platforms and
formance standards in § 550.202 to ei- other structures (or major modifica-

ther approve, require you to further tions to platforms and other struc-
modify, or disapprove your modified or tures) (see 30 CFR 250.905);
396
(4) Approval of applications to install § 550.282 Do I have to conduct post-ap-

lease term pipelines (see 30 CFR proval monitoring?
250.1007); and After approving your EP, DPP, or
(5) Other permits, as required by ap- DOCD, the Regional Supervisor may di-
plicable law. rect you to conduct monitoring pro-
(b) Conformance. The activities programs, including monitoring in accord-
posed in these applications and permits ance with the ESA and the MMPA. You
must conform to the activities de- must retain copies of all monitoring
scribed in detail in your approved EP, data obtained or derived from your
DPP, or DOCD. monitoring programs and make them
(c) Separate State CZMA consistency available to the BOEM upon request.
review. APDs, and other applications The Regional Supervisor may require
for licenses, approvals, or permits to you to:
conduct activities under your approved
(a) Monitoring plans. Submit moni-
EP, DPP, or DOCD including those
toring plans for approval before you
identified in paragraph (a) of this sec-
begin the work; and
tion, are not subject to separate State
(b) Monitoring reports. Prepare and
CZMA consistency review.
submit reports that summarize and
(d) Approval restrictions for permits for
analyze data and information obtained
activities conducted under EPs. The Re-
or derived from your monitoring pro-
gional Supervisor will not approve any
grams. The Regional Supervisor will
APDs or other applications for li-
specify requirements for preparing and
censes, approvals, or permits under
submitting these reports.
your approved EP until either:
(1) All affected States with approved § 550.283 When must I revise or sup-
coastal zone management programs plement the approved EP, DPP, or
concur, or are conclusively presumed DOCD?
to concur, with the coastal zone con-
sistency certification accompanying (a) Revised OCS plans. You must re-
your EP under section 307(c)(3)(B)(i) vise your approved EP, DPP, or DOCD
and (ii) of the CZMA (16 U.S.C. when you propose to:
1456(c)(3)(B)(i) and (ii)); or (1) Change the type of drilling rig
(2) The Secretary of Commerce finds, (e.g., jack-up, platform rig, barge, sub-
under section 307(c)(3)(B)(iii) of the mersible, semisubmersible, or
CZMA (16 U.S.C.1456(c)(3)(B)(iii)) that drillship), production facility (e.g.,
each activity covered by the EP is con- caisson, fixed platform with piles, ten-
sistent with the objectives of the sion leg platform), or transportation
CZMA or is otherwise necessary in the mode (e.g., pipeline, barge);
interest of National security; (2) Change the surface location of a
(3) If an affected State objects to the well or production platform by a dis-
coastal zone consistency certification tance more than that specified by the
accompanying your approved EP after Regional Supervisor;
BOEM has approved your EP, you may (3) Change the type of production or
either: significantly increase the volume of
(i) Revise your EP to accommodate production or storage capacity;
the State’s objection and submit the (4) Increase the emissions of an air
revision to the Regional Supervisor for pollutant to an amount that exceeds
approval; or the amount specified in your approved
(ii) Appeal the State’s objection to EP, DPP, or DOCD;
the Secretary of Commerce using the (5) Significantly increase the amount
procedures in 15 CFR part 930, subpart of solid or liquid wastes to be handled
H. The Secretary of Commerce will ei- or discharged;
ther: (6) Request a new H2S area classifica-
(A) Grant your appeal by making the tion, or increase the concentration of
finding described in paragraph (d)(2) of H2S to a concentration greater than
this section; or that specified by the Regional Super-
(B) Deny your appeal, in which case visor;

you may revise your EP as described in (7) Change the location of your on-
paragraph (d)(3)(i) of this section. shore support base either from one
397
§ 550.284 30 CFR Ch. V (7–1–18 Edition)
State to another or to a new base or a for EPs and §§ 550.266 through 550.273 for
base requiring expansion; or DPPs and DOCDs.
(8) Change any other activity speci-
fied by the Regional Supervisor. §§ 550.286–550.295 [Reserved]
(b) Supplemental OCS plans. You must
supplement your approved EP, DPP, or CONSERVATION INFORMATION DOCUMENTS
DOCD when you propose to conduct ac- (CID)
tivities on your lease(s) or unit that re- § 550.296 When and how must I submit
quire approval of a license or permit a CID or a revision to a CID?
which is not described in your approved
EP, DPP, or DOCD. These types of (a) You must submit one original and
changes are called supplemental OCS two copies of a CID to the appropriate
plans. OCS Region at the same time you first
submit your DOCD or DPP for any de-
§ 550.284 How will BOEM require revi- velopment of a lease or leases located
sions to the approved EP, DPP, or in water depths greater than 400 meters
DOCD? (1,312 feet). You must also submit a
(a) Periodic review. The Regional Su- CID for a Supplemental DOCD or DPP
pervisor will periodically review the when requested by the Regional Super-
activities you conduct under your ap- visor. The submission of your CID must
proved EP, DPP, or DOCD and may re- be accompanied by payment of the
quire you to submit updated informa- service fee listed in § 550.125.
tion on your activities. The frequency (b) If you decide not to develop a res-
and extent of this review will be based ervoir you committed to develop in
on the significance of any changes in your CID, you must submit one origi-
available information and onshore or nal and two copies of a revision to the
offshore conditions affecting, or af- CID to the appropriate OCS Region.
fected by, the activities in your ap- The revision to the CID must be sub-
proved EP, DPP, or DOCD. mitted within 14 calendar days after
(b) Results of review. The Regional Su- making your decision not to develop
pervisor may require you to revise the reservoir and before the reservoir is
your approved EP, DPP, or DOCD based bypassed. The Regional Supervisor will
on this review. In such cases, the Re- approve or disapprove any such revi-
gional Supervisor will inform you of sion to the original CID. If the Re-
the reasons for the decision. gional Supervisor disapproves the revi-
sion, you must develop the reservoir as
§ 550.285 How do I submit revised and described in the original CID.
supplemental EPs, DPPs, and
DOCDs? § 550.297 What information must a CID
contain?
(a) Submittal. You must submit to the
Regional Supervisor any revisions and (a) You must base the CID on wells
supplements to approved EPs, DPPs, or drilled before your CID submittal that
DOCDs for approval, whether you ini- define the extent of the reservoirs. You
tiate them or the Regional Supervisor must notify BOEM of any well that is
orders them. drilled to total depth during the CID
(b) Information. Revised and supple- evaluation period and you may be re-
mental EPs, DPPs, and DOCDs need in- quired to update your CID.
clude only information related to or af- (b) You must include all of the fol-
fected by the proposed changes, includ- lowing information if available. Infor-
ing information on changes in expected mation must be provided for each hy-
environmental impacts. drocarbon-bearing reservoir that is
(c) Procedures. All supplemental EPs, penetrated by a well that would meet
DPPs, and DOCDs, and those revised the producibility requirements of
EPs, DPPs, and DOCDs that the Re- § 550.115 or § 550.116:
gional Supervisor determines are like- (1) General discussion of the overall
ly to result in a significant change in development of the reservoir;
the impacts previously identified and (2) Summary spreadsheets of well log
evaluated, are subject to all of the pro- data and reservoir parameters (i.e.,
cedures under §§ 550.231 through 550.235 sand tops and bases, fluid contacts, net
398
pay, porosity, water saturations, pres- (i) A statement explaining the rea-
sures, formation volume factor); son(s) you will not develop the res-
(3) Appropriate well logs, including ervoir, and
digital well log (i.e., gamma ray, resis- (ii) Economic justification, including
tivity, neutron, density, sonic, caliper costs, recoverable reserve estimate,
curves) curves in an acceptable digital production profiles, and pricing as-
format; sumptions; and
(4) Sidewall core/whole core and pres- (16) Any other appropriate data you
sure-volume-temperature analysis; used in performing your reservoir eval-
(5) Structure maps, with the existing uations and preparing your reservoir
and proposed penetration points and development strategies.
subsea depths for all wells penetrating
the reservoirs, fluid contacts (or the § 550.298 How long will BOEM take to
lowest or highest known levels in the evaluate and make a decision on
absence of actual contacts), reservoir the CID?
boundaries, and the scale of the map; (a) The Regional Supervisor will
(6) Interpreted structural cross sec- make a decision within 150 calendar
tions and corresponding interpreted days of receiving your CID. If BOEM
seismic lines or block diagrams, as nec- does not act within 150 calendar days,
essary, that include all current your CID is considered approved.
wellbores and planned wellbores on the (b) BOEM may suspend the 150-cal-
leases or units to be developed, the res- endar-day evaluation period if there is
ervoir boundaries, fluid contacts, depth missing, inconclusive, or inaccurate
scale, stratigraphic positions, and rel- data, or when a well reaches total
ative biostratigraphic ages; depth during the evaluation period.
(7) Isopach maps of each reservoir BOEM may also suspend the evaluation
showing the net feet of pay for each period when a well penetrating a hy-
well within the reservoir identified at drocarbon-bearing structure reaches
the penetration point, along with the total depth during the evaluation pe-
well name, labeled contours, and scale; riod and the data from that well is
(8) Estimates of original oil and gas needed for the CID. You will receive
in-place and anticipated recoverable oil written notification from the Regional
and gas reserves, all reservoir param- Supervisor describing the additional
eters, and risk factors and assump- information that is needed, and the
tions; evaluation period will resume once
(9) Plat map at the same scale as the BOEM receives the requested informa-
structure maps with existing and pro- tion.
posed well paths, as well as existing (c) The Regional Supervisor will ap-
and proposed penetrations; prove or deny your CID request based
(10) Wellbore schematics indicating on your commitment to develop eco-
proposed perforations; nomically producible reservoirs accord-
(11) Proposed wellbore utility chart ing to sound conservation, engineering,
showing all existing and proposed and economic practices.
wells, with proposed completion inter-
vals indicated for each borehole; § 550.299 What operations require ap-
proval of the CID?
(12) Appropriate pressure data, speci-
fied by date, and whether estimated or You may not begin production before
measured; you receive BOEM approval of the CID.
(13) Description of reservoir develop-
ment strategies; Subpart C—Pollution Prevention
(14) Description of the enhanced re- and Control
covery practices you will use or, if you
do not plan to use such practices, an §§ 550.300–550.301 [Reserved]
explanation of the methods you consid-
ered and reasons you do not intend to § 550.302 Definitions concerning air
use them; quality.

(15) For each reservoir you do not in- For purposes of §§ 550.303 and 550.304
tend to develop: of this part:
399
§ 550.303 30 CFR Ch. V (7–1–18 Edition)
Air pollutant means any combination part of the facility while physically at-
of agents for which the Environmental tached to it.
Protection Agency (EPA) has estab- Nonattainment area means, for any air
lished, pursuant to section 109 of the pollutant, an area which is shown by
Clean Air Act, national primary or sec- monitored data or which is calculated
ondary ambient air quality standards. by air quality modeling (or other meth-
Attainment area means, for any air ods determined by the Administrator
pollutant, an area which is shown by of EPA to be reliable) to exceed any
monitored data or which is calculated primary or secondary ambient air qual-
by air quality modeling (or other meth- ity standard established by EPA.
ods determined by the Administrator Projected emissions mean emissions,
of EPA to be reliable) not to exceed either controlled or uncontrolled, from
any primary or secondary ambient air a source(s).
quality standards established by EPA. Source means an emission point. Sev-
Best available control technology eral sources may be included within a
(BACT) means an emission limitation single facility.
based on the maximum degree of reduc- Temporary facility means activities
tion for each air pollutant subject to associated with the construction of
regulation, taking into account energy, platforms offshore or with facilities re-
environmental and economic impacts, lated to exploration for or development
and other costs. The BACT shall be of offshore oil and gas resources which
verified on a case-by-case basis by the are conducted in one location for less
Regional Supervisor and may include than 3 years.
reductions achieved through the appli- Volatile organic compound (VOC)
cation of processes, systems, and tech- means any organic compound which is
niques for the control of each air pol- emitted to the atmosphere as a vapor.
lutant. The unreactive compounds are exempt
from the above definition.
Emission offsets mean emission reduc-
tions obtained from facilities, either § 550.303 Facilities described in a new
onshore or offshore, other than the fa- or revised Exploration Plan or De-
cility or facilities covered by the pro- velopment and Production Plan.
posed Exploration Plan or Develop- (a) New plans. All Exploration Plans
ment and Production Plan. and Development and Production Plans
Existing facility is an OCS facility de- shall include the information required
scribed in an Exploration Plan or a De- to make the necessary findings under
velopment and Production Plan subparagraphs (d) through (i) of this sec-
mitted or approved prior to June 2, tion, and the lessee shall comply with
1980. the requirements of this section as nec-
Facility means any installation or de- essary.
vice permanently or temporarily at- (b) Applicability of § 550.303 to existing
tached to the seabed which is used for facilities. (1) The Regional Supervisor
exploration, development, and produc- may review any Exploration Plan or
tion activities for oil, gas, or sulphur Development and Production Plan to
and which emits or has the potential to determine whether any facility de-
emit any air pollutant from one or scribed in the plan should be subject to
more sources. All equipment directly review under this section and has the
associated with the installation or de- potential to significantly affect the air
vice shall be considered part of a single quality of an onshore area. To make
facility if the equipment is dependent these decisions, the Regional Super-
on, or affects the processes of, the in- visor shall consider the distance of the
stallation or device. During produc- facility from shore, the size of the fa-
tion, multiple installations or devices cility, the number of sources planned
will be considered to be a single facil- for the facility and their operational
ity if the installations or devices are status, and the air quality status of the
directly related to the production of onshore area.
oil, gas, or sulphur at a single site. Any (2) For a facility identified by the Re-
vessel used to transfer production from gional Supervisor in paragraph (b)(1) of
an offshore facility shall be considered this section, the Regional Supervisor
400
shall require the lessee to refer to the in § 550.249(a) or § 550.218(a) of this part
information required in § 550.218 or and compare these emissions to the
§ 550.249 of this part and to submit only emission exemption amount ‘‘E’’ for
that information required to make the each air pollutant calculated using the
necessary findings under paragraphs (d) following formulas: E = 3400D 2⁄3 for car-
through (i) of this section. The lessee bon monoxide (CO); and E = 33.3D for
shall submit this information within total suspended particulates (TSP),
120 days of the Regional Supervisor’s sulphur dioxide (SO2), nitrogen oxides
determination or within a longer pe- (NOX), and VOC (where E is the emis-
riod of time at the discretion of the Re- sion exemption amount expressed in
gional Supervisor. The lessee shall tons per year, and D is the distance of
comply with the requirements of this the proposed facility from the closest
section as necessary. onshore area of a State expressed in
(c) Revised facilities. All revised Ex- statute miles). If the amount of these
ploration Plans and Development and projected emissions is less than or
Production Plans shall include the in- equal to the emission exemption
formation required to make the nec- amount ‘‘E’’ for the air pollutant, the
essary findings under paragraphs (d) facility is exempt from further air
through (i) of this section. The lessee quality review required under para-
shall comply with the requirements of graphs (e) through (i) of this section.
this section as necessary. (e) Significance levels. For a facility
(d) Exemption formulas. To determine not exempt under paragraph (d) of this
whether a facility described in a new, section for air pollutants other than
modified, or revised Exploration Plan VOC, the lessee shall use an approved
or Development and Production Plan is air quality model to determine whether
exempt from further air quality review, the projected emissions of those air
the lessee shall use the highest annual- pollutants from the facility result in
total amount of emissions from the fa- an onshore ambient air concentration
cility for each air pollutant calculated above the following significance levels:
SIGNIFICANCE LEVELS—AIR POLLUTANT CONCENTRATIONS
[μg/m3]
Averaging time (hours)

Air pollutant
Annual 24 8 3 1
SO2 ............................................................ 1 5 ........................ 25

TSP ........................................................... 1 5 ........................ ........................
NO2 ............................................................ 1 ........................ ........................ ........................
CO ............................................................. ........................ ........................ 500 ........................ 2,000
(f) Significance determinations. (1) The than VOC from any facility, except a
projected emissions of any air pollut- temporary facility, which significantly
ant other than VOC from any facility affect the quality of a nonattainment
which result in an onshore ambient air area, shall be fully reduced. This shall
concentration above the significance be done through the application of
level determined under paragraph (e) of BACT and, if additional reductions are
this section for that air pollutant, necessary, through the application of
shall be deemed to significantly affect additional emission controls or
the air quality of the onshore area for through the acquisition of offshore or
that air pollutant. onshore offsets.
(2) The projected emissions of VOC (2) The projected emissions of any air
from any facility which is not exempt pollutant other than VOC from any fa-
under paragraph (d) of this section for cility which significantly affect the air
that air pollutant shall be deemed to quality of an attainment or
significantly affect the air quality of unclassifiable area shall be reduced
the onshore area for VOC. through the application of BACT.

(g) Controls required. (1) The projected (i)(A) Except for temporary facilities,
emissions of any air pollutant other the lessee also shall use an approved
401
§ 550.303 30 CFR Ch. V (7–1–18 Edition)
air quality model to determine whether able increases over the baseline con-
the emissions of TSP or SO2 that re- centrations established in 40 CFR 52.21
main after the application of BACT to be exceeded in the attainment or
cause the following maximum allow- unclassifiable area:
MAXIMUM ALLOWABLE CONCENTRATION INCREASES
[μg/m3]
Averaging times
Air pollutant 24-hour 3-hour
Annual mean 1 maximum maximum
Class I:
TSP ..................................................................................................... 5 10
SO2 ...................................................................................................... 2 5 25
Class II:
TSP ..................................................................................................... 19 37
SO2 ...................................................................................................... 20 91 512
Class III:
TSP ..................................................................................................... 37 75
SO2 ...................................................................................................... 40 182 700
1 For TSP—geometric; For SO2—arithmetric.
(B) No concentration of an air pollut- (4)(i) If projected emissions from a fa-

ant shall exceed the concentration per- cility significantly affect the onshore
mitted under the national secondary air quality of both a nonattainment
ambient air quality standard or the and an attainment or unclassifiable
concentration permitted under the na- area, the regulatory requirements ap-
tional primary air quality standard, plicable to projected emissions signifi-
whichever concentration is lowest for cantly affecting a nonattainment area
the air pollutant for the period of expo- shall apply.
sure. For any period other than the an- (ii) If projected emissions from a fa-
nual period, the applicable maximum cility significantly affect the onshore
allowable increase may be exceeded air quality of more than one class of
during one such period per year at any attainment area, the lessee must re-
one onshore location. duce projected emissions to meet the
(ii) If the maximum allowable in- maximum allowable increases specified
creases are exceeded, the lessee shall for each class in paragraph (g)(2)(i) of
apply whatever additional emission this section.
controls are necessary to reduce or off-
(h) Controls required on temporary fa-
set the remaining emissions of TSP or
cilities. The lessee shall apply BACT to
SO2 so that concentrations in the on-
reduce projected emissions of any air
shore ambient air of an attainment or
unclassifiable area do not exceed the pollutant from a temporary facility
maximum allowable increases. which significantly affects the air
(3)(i) The projected emissions of VOC quality of an onshore area of a State.
from any facility, except a temporary (i) Emission offsets. When emission
facility, which significantly affect the offsets are to be obtained, the lessee
onshore air quality of a nonattainment must demonstrate that the offsets are
area shall be fully reduced. This shall equivalent in nature and quantity to
be done through the application of the projected emissions that must be
BACT and, if additional reductions are reduced after the application of BACT;
necessary, through the application of a binding commitment exists between
additional emission controls or the lessee and the owner or owners of
through the acquisition of offshore or the source or sources; the appropriate
onshore offsets. air quality control jurisdiction has
(ii) The projected emissions of VOC been notified of the need to revise the
from any facility which significantly State Implementation Plan to include
affect the onshore air quality of an at- the information regarding the offsets;
tainment area shall be reduced through and the required offsets come from
the application of BACT. sources which affect the air quality of
402
the area significantly affected by the submitting a request under paragraph

lessee’s offshore operations. (a)(1) of this section.
(j) Review of facilities with emissions (3) The State submitting a request
below the exemption amount. If, during under paragraph (a)(1) of this section
the review of a new, modified, or re- may submit information from its emis-
vised Exploration Plan or Development sion inventory which indicates that
and Production Plan, the Regional Su- emissions from existing facilities may
pervisor determines or an affected be significantly affecting the air qual-
State submits information to the Re- ity of the onshore area of the State.
gional Supervisor which demonstrates, The lessee shall be given the oppor-
in the judgment of the Regional Super- tunity to present information to the
visor, that projected emissions from an Regional Supervisor which dem-
otherwise exempt facility will, either onstrates that the facility is not sig-
individually or in combination with nificantly affecting the air quality of
other facilities in the area, signifi- the State.
cantly affect the air quality of an on- (4) The Regional Supervisor shall
shore area, then the Regional Super- evaluate the information submitted
visor shall require the lessee to submit under paragraph (a)(3) of this section
additional information to determine and shall determine, based on the basic
whether emission control measures are emission data, available meteorolog-
necessary. The lessee shall be given the ical data, and the distance of the facil-
opportunity to present information to ity or facilities from the onshore area,
the Regional Supervisor which dem- whether any existing facility has the
onstrates that the exempt facility is potential to significantly affect the air
not significantly affecting the air qual- quality of the onshore area of the
ity of an onshore area of the State. State.
(k) Emission monitoring requirements. (5) If the Regional Supervisor deter-
mines that no existing facility has the
The lessee shall monitor, in a manner
potential to significantly affect the air
approved or prescribed by the Regional
quality of the onshore area of the State
Supervisor, emissions from the facil-
submitting information under para-
ity. The lessee shall submit this infor-
graph (a)(3) of this section, the Re-
mation monthly in a manner and form
gional Supervisor shall notify the
approved or prescribed by the Regional
State of and explain the reasons for
Supervisor.
this finding.
(l) Collection of meteorological data. (6) If the Regional Supervisor deter-
The Regional Supervisor may require mines that an existing facility has the
the lessee to collect, for a period of potential to significantly affect the air
time and in a manner approved or pre- quality of an onshore area of the State
scribed by the Regional Supervisor, submitting information under para-
and submit meteorological data from a graph (a)(3) of this section, the Re-
facility. gional Supervisor shall require the les-
see to refer to the information require-
§ 550.304 Existing facilities.
ments under § 550.218 or § 550.249 of this
(a) Process leading to review of an exist- part and submit only that information
ing facility. (1) An affected State may required to make the necessary find-
request that the Regional Supervisor ings under paragraphs (b) through (e)
supply basic emission data from exist- of this section. The lessee shall submit
ing facilities when such data are need- this information within 120 days of the
ed for the updating of the State’s emis- Regional Supervisor’s determination or
sion inventory. In submitting the re- within a longer period of time at the
quest, the State must demonstrate discretion of the Regional Supervisor.
that similar offshore and onshore fa- The lessee shall comply with the re-
cilities in areas under the State’s juris- quirements of this section as nec-
diction are also included in the emis- essary.
sion inventory. (b) Exemption formulas. To determine
(2) The Regional Supervisor may re- whether an existing facility is exempt
quire lessees of existing facilities to from further air quality review, the
submit basic emission data to a State lessee shall use the highest annual
403
§ 550.304 30 CFR Ch. V (7–1–18 Edition)
total amount of emissions from the fa- tion amount ‘‘E’’ for the air pollutant,
cility for each air pollutant calculated the facility is exempt for that air pol-
in § 550.218(a) or § 550.249(a) of this part lutant from further air quality review
and compare these emissions to the required under paragraphs (c) through
emission exemption amount ‘‘E’’ for (e) of this section.
each air pollutant calculated using the (c) Significance levels. For a facility
following formulas: E = 3400D2/3 for CO; not exempt under paragraph (b) of this
and E = 33.3D for TSP, SO2, NOX, and section for air pollutants other than
VOC (where E is the emission exemp-
VOC, the lessee shall use an approved
tion amount expressed in tons per year,
air quality model to determine whether
and D is the distance of the facility
from the closest onshore area of the projected emissions of those air pollut-
State expressed in statute miles). If the ants from the facility result in an on-
amount of projected emissions is less shore ambient air concentration above
than or equal to the emission exemp- the following significance levels:
SIGNIFICANCE LEVELS—AIR POLLUTANT CONCENTRATIONS

[μG/M3]
Averaging time (hours)

Air pollutant
Annual 24 8 3 1
SO2 ............................................................ 1 5 ........................ 25

TSP ........................................................... 1 5 ........................ ........................
NO2 ............................................................ 1 ........................ ........................ ........................
CO ............................................................. ........................ ........................ 500 ........................ 2,000
(d) Significance determinations. (1) The the Regional Supervisor determines or

projected emissions of any air pollut- an affected State submits information
ant other than VOC from any facility to the Regional Supervisor which dem-
which result in an onshore ambient air onstrates, in the judgment of the Re-
concentration above the significance gional Supervisor, that projected emis-
levels determined under paragraph (c) sions from an otherwise exempt facil-
of this section for that air pollutant ity will, either individually or in com-
shall be deemed to significantly affect bination with other facilities in the
the air quality of the onshore area for area, significantly affect the air qual-
that air pollutant. ity of an onshore area, then the Re-
(2) The projected emissions of VOC gional Supervisor shall require the les-
from any facility which is not exempt see to submit additional information to
under paragraph (b) of this section for determine whether control measures
that air pollutant shall be deemed to are necessary. The lessee shall be given
significantly affect the air quality of the opportunity to present information
the onshore area for VOC.
to the Regional Supervisor which dem-
(e) Controls required. (1) The projected
onstrates that the exempt facility is
emissions of any air pollutant which
not significantly affecting the air qual-
significantly affect the air quality of
ity of an onshore area of the State.
an onshore area shall be reduced
through the application of BACT. (g) Emission monitoring requirements.
(2) The lessee shall submit a compli- The lessee shall monitor, in a manner
ance schedule for the application of approved or prescribed by the Regional
BACT. If it is necessary to cease oper- Supervisor, emissions from the facility
ations to allow for the installation of following the installation of emission
emission controls, the lessee may apply controls. The lessee shall submit this
for a suspension of operations under information monthly in a manner and
the provisions of 30 CFR 250.174. form approved or prescribed by the Re-
(f) Review of facilities with emissions gional Supervisor.
below the exemption amount. If, during (h) Collection of meteorological data.
the review of the information required The Regional Supervisor may require
under paragraph (a)(6) of this section, the lessee to collect, for a period of
404
time and in a manner approved or pre- required in 30 CFR part 256 and 30 CFR
scribed by the Regional Supervisor, part 556) that guarantees compliance
and submit meteorological data from a with all the terms and conditions of
facility. the rights-of-way you hold in an OCS
area; and
Subpart D—Leasing Maps and (2) Provide additional security if the
Diagrams Regional Director determines that a
bond in excess of $300,000 is needed.
§ 550.400 Leasing maps and diagrams. (b) For the purpose of this paragraph,
(a) Any area of the OCS, which has there are three areas:
been appropriately platted as provided (1) The Gulf of Mexico and the area
in paragraph (b) of this section, may be offshore the Atlantic Coast;
leased for any mineral not included in (2) The areas offshore the Pacific
an existing lease issued under the Act Coast States of California, Oregon,
or meeting the requirements of sub- Washington, and Hawaii; and
section (a) of section 6 of the Act. Be- (3) The area offshore the Coast of
fore any lease is offered or issued an Alaska.
area may be: (c) If, as the result of a default, the
(1) Withdrawn from disposition pur- surety on a right-of-way grant bond
suant to section 12(a) of the Act; or makes payment to the Government of
(2) Designated as an area or part of any indebtedness under a grant secured
an area restricted from operation by the bond, the face amount of such
under section 12(d) of the Act. bond and the surety’s liability shall be
(b) BOEM will prepare leasing maps reduced by the amount of such pay-
and official protraction diagrams of ment.
areas of the OCS. The areas included in (d) After a default, a new bond in the
each mineral lease will be in accord- amount of $300,000 shall be posted with-
ance with the appropriate leasing map in 6 months or such shorter period as
or official protraction diagram. the Regional Supervisor may direct.
Failure to post a new bond shall be
[81 FR 18152, Mar. 30, 2016] grounds for forfeiture of all grants cov-
ered by the defaulted bond.
Subparts E–I [Reserved]
Subpart K—Oil and Gas
Subpart J—Pipelines and Pipeline Production Requirements.
Rights-of-Way
WELL TESTS AND SURVEYS
§ 550.1011 Bond requirements for pipe-
line right-of-way holders. § 550.1153 When must I conduct a stat-
(a) When you apply for, or are the ic bottomhole pressure survey?
holder of, a right-of-way, you must: (a) You must conduct a static
(1) Provide and maintain a $300,000 bottomhole pressure survey under the
bond (in addition to the bond coverage following conditions:
If you have . . . Then you must conduct . . .
(1) A new producing reservoir, A static bottomhole pressure survey within 90 days after the date of first contin-
uous production.
(2) A reservoir with three or more pro- Annual static bottomhole pressure surveys in a sufficient number of key wells to
ducing completions, establish an average reservoir pressure. The Regional Supervisor may require
that bottomhole pressure surveys be performed on specific wells.
(b) Your bottomhole pressure survey ment at mid-perforation, and pressure

must meet the following requirements: measurements and gradient informa-
(1) You must shut-in the well for a tion for at least four gradient stops
minimum period of 4 hours to ensure coming out of the hole.
stabilized conditions; and (c) You must submit to the Regional

(2) The bottomhole pressure survey Supervisor the results of all static
must consist of a pressure measure- bottomhole pressure surveys on Form
405
§ 550.1154 30 CFR Ch. V (7–1–18 Edition)
BOEM–140, Bottomhole Pressure Sur- § 550.1155 What information must I

vey Report, within 60 days after the submit for sensitive reservoirs?
date of the survey. You must submit to the Regional Su-
(d) The Regional Supervisor may pervisor an original and two copies of
grant a departure from the require- Form BOEM–0127; one of the copies
ment to run a static bottomhole pres- must be a public information copy in
sure survey. To request a departure, accordance with §§ 550.186 and 550.197,
you must submit a justification, along and marked ‘‘Public Information.’’ You
with Form BOEM–0140, Bottomhole must also submit two copies of the sup-
Pressure Survey Report, showing a cal- porting information, as listed in the
culated bottomhole pressure or any table in § 550.1167. You must submit
measured data. this information:
[76 FR 64623, Oct. 18, 2011, as amended at 80 (a) Within 45 days after beginning
FR 57096, Sept. 22, 2015] production from the reservoir or dis-
covering that it is sensitive;
CLASSIFYING RESERVOIRS (b) At least once during the calendar
year, but you do not need to resubmit
§ 550.1154 How do I determine if my unrevised structure maps
reservoir is sensitive? (§ 550.1167(a)(2)) or previously submitted
(a) You must determine whether each well logs (§ 550.1167(c)(1));
reservoir is sensitive. You must clas- (c) Within 45 days after you revise
sify the reservoir as sensitive if: reservoir parameters; and
(1) Under initial conditions it is an (d) Within 45 days after the Regional
oil reservoir with an associated gas Supervisor classifies the reservoir as
cap; sensitive under § 550.1154(c).
(2) At any time there are near-crit-
ical fluids; or OTHER REQUIREMENTS
(3) The reservoir is undergoing en- § 550.1165 What must I do for en-
hanced recovery. hanced recovery operations?
(b) For the purposes of this subpart,
(a) [Reserved]
near-critical fluids are:
(b) Before initiating enhanced recov-
(1) Those fluids that occur in high
ery operations, you must submit a pro-
temperature, high-pressure reservoirs
posed plan to the BSEE Regional Su-
where it is not possible to define the
pervisor and receive approval for pres-
liquid-gas contact; or
sure maintenance, secondary or ter-
(2) Fluids in reservoirs that are near tiary recovery, cycling, and similar re-
bubble point or dew point conditions. covery operations intended to increase
(c) The Regional Supervisor may re- the ultimate recovery of oil and gas
classify a reservoir when available in- from a reservoir. The proposed plan
formation warrants reclassification. must include, for each project res-
(d) If available information indicates ervoir, a geologic and engineering over-
that a reservoir previously classified as view, Form BOEM–0127 (submitted to
non-sensitive is now sensitive, you BOEM) and supporting data as required
must submit a request to the Regional in § 550.1167, 30 CFR 250.1167, and any
Supervisor to reclassify the reservoir. additional information required by the
You must include supporting informa- BSEE Regional Supervisor.
tion, as listed in the table in § 550.1167, (c) [Reserved]
with your request.
(e) If information indicates that a § 550.1166 What additional reporting is
reservoir previously classified as sen- required for developments in the
sitive is now non-sensitive, you may Alaska OCS Region?
submit a request to the Regional Su- (a)–(b) [Reserved]
pervisor to reclassify the reservoir. (c) Every time you are required to
You must include supporting informa- submit Form BOEM–0127 under

tion, as listed in the table in § 550.1167, § 550.1155, you must request an MER for
with your request. each producing sensitive reservoir in
406
the Alaska OCS Region, unless other- § 550.1167 What information must I
wise instructed by the Regional Super- submit with forms and for approv-
visor. als?
You must submit the supporting in-
formation listed in the following table
with the form identified in column 1
and for the approval required under
this subpart identified in column 2:
SRI BOEM–0127 Reservoir reclassification
(2 copies)
(a) Maps:
(1) Base map with surface, bottomhole, and completion locations
with respect to the unit or lease line and the orientation of rep-
resentative seismic lines or cross-sections ................................. ........................................
(2) Structure maps with penetration point and subsea depth for
each well penetrating the reservoirs, highlighting subject wells;
reservoir boundaries; and original and current fluid levels ......... √ √
(3) Net sand isopach with total net sand penetrated for each well,
identified at the penetration point ................................................ *
(4) Net hydrocarbon isopach with net feet of pay for each well,
identified at the penetration point ................................................ *
(b) Seismic data:
(1) Representative seismic lines, including strike and dip lines
that confirm the structure; indicate polarity ................................. ........................................
(2) Amplitude extraction of seismic horizon, if applicable .............. ........................................ √
(c) Logs:
(1) Well log sections with tops and bottoms of the reservoir(s)
and proposed or existing perforations ........................................ √ √
(2) Structural cross-sections showing the subject well and nearby
wells ............................................................................................. ........................................ √
(d) Engineering data:
(1) Estimated recoverable reserves for each well completion in
the reservoir; total recoverable reserves for each reservoir;
method of calculation; reservoir parameters used in volumetric
and decline curve analysis .......................................................... √
(2) Well schematics showing current and proposed conditions .....
(3) The drive mechanism of each reservoir ................................... √ √
(4) Pressure data, by date, and whether they are estimated or
measured ..................................................................................... ........................................ √
(5) Production data and decline curve analysis indicative of the
reservoir performance ................................................................. ........................................ √
(6) Reservoir simulation with the reservoir parameters used, his-
tory matches, and prediction runs (include proposed develop-
ment scenario) ............................................................................. ........................................ *
(e) General information:
(1) Detailed economic analysis .......................................................
(2) Reservoir name and whether or not it is competitive as de-
fined under § 250.105 .................................................................. √ √
(3) Operator name, lessee name(s), block, lease number, royalty
rate, and unit number (if applicable) of all relevant leases ........ ........................................
(4) Geologic overview of project ..................................................... ........................................ √
(5) Explanation of why the proposed completion scenario will
maximize ultimate recovery ......................................................... ........................................
(6) List of all wells in subject reservoirs that have ever produced
or been used for injection ........................................................... ........................................ √
√ Required.
* Additional items the Regional Supervisor may request.
Note: All maps must be at a standard scale and show lease and unit lines. The Regional Supervisor may waive submittal of
some of the required data on a case-by-case basis.
407
§ 550.1400 30 CFR Ch. V (7–1–18 Edition)
(f) Depending on the type of approval operator or other person engaged in oil,
requested, you must submit the appro- gas, sulphur or other minerals oper-
priate payment of the service fee(s) ations in the OCS has a violation.
listed in § 550.125, according to the in- Whenever BOEM determines, on the
structions in § 550.126. basis of available evidence, that a vio-
lation occurred and a civil penalty re-
Subparts L–M [Reserved] view is appropriate, it will prepare a
case file. BOEM will appoint a Review-
Subpart N—Outer Continental ing Officer.
Shelf Civil Penalties
§ 550.1401 Index table.
OUTER CONTINENTAL SHELF LANDS ACT The following table is an index of the
CIVIL PENALTIES sections in this subpart:
§ 550.1400 How does BOEM begin the
civil penalty process?
This subpart explains BOEM’s civil
penalty procedures whenever a lessee,
(a) Definitions ..................................................................................................... § 550.1402

(b) What is the maximum civil penalty? ............................................................. § 550.1403
(c) Which violations will BOEM review for potential civil penalties? .................. § 550.1404
(d) When is a case file developed? ................................................................... § 550.1405
(e) When will BOEM notify me and provide penalty information? ..................... § 550.1406
(f) How do I respond to the letter of notification? .............................................. § 550.1407
(g) When will I be notified of the Reviewing Officer’s decision? ....................... § 550.1408
(h) What are my appeal rights? ......................................................................... § 550.1409
§ 550.1402 Definitions. § 550.1403 What is the maximum civil

penalty?
Terms used in this subpart have the
following meaning: The maximum civil penalty is $43,576
Case file means a BOEM document per day per violation.
file containing information and the [83 FR 8933, Mar. 2, 2018]
record of evidence related to the al-
leged violation. § 550.1404 Which violations will BOEM
Civil penalty means a fine. It is a review for potential civil penalties?
BOEM regulatory enforcement tool BOEM will review each of the fol-
used in addition to Notices of Incidents lowing violations for potential civil
of Noncompliance and directed suspen- penalties:
sions of production or other operations. (a) Violations that you do not correct
Reviewing Officer means a BOEM em- within the period BOEM grants;
ployee assigned to review case files and (b)–(c) [Reserved]
assess civil penalties. (d) Violations of the oil spill finan-
Violation means failure to comply cial responsibility requirements at 30
with the Outer Continental Shelf CFR part 553.
Lands Act (OCSLA) or any other appli-
cable laws, with any regulations issued § 550.1405 When is a case file devel-
under the OCSLA, or with the terms or oped?
provisions of leases, licenses, permits, BOEM will develop a case file during
rights-of-way, or other approvals its investigation of the violation, and
issued under the OCSLA. forward it to a Reviewing Officer if any
Violator means a person responsible of the conditions in § 550.1404 exist. The
for a violation. Reviewing Officer will review the case

file and determine if a civil penalty is
appropriate. The Reviewing Officer
408
may administer oaths and issue sub- (2) Notify the appropriate Leasing Of-
poenas requiring witnesses to attend fice, in the Region where the penalty
meetings, submit depositions, or was assessed, that you want your lease-
produce evidence. specific/area-wide bond on file to be
used as the bond for the penalty
§ 550.1406 When will BOEM notify me
and provide penalty information? amount.
(c) If you choose the alternative in
If the Reviewing Officer determines paragraph (b)(2) of this section, the
that a civil penalty should be assessed, BOEM Regional Director may require
the Reviewing Officer will send the vio-
additional security (i.e., security in ex-
lator a letter of notification. The letter
cess of your existing bond) to ensure
of notification will include:
(a) The amount of the proposed civil sufficient coverage during an appeal. In
penalty; that event, the Regional Director will
(b) Information on the violation(s); require you to post the supplemental
and bond with the regional office in the
(c) Instruction on how to obtain a same manner as under § 556.53(d)
copy of the case file, schedule a meet- through (f) of this chapter. If the Re-
ing, submit information, or pay the gional Director determines the appeal
penalty. should be covered by a lease-specific
abandonment account then you must
§ 550.1407 How do I respond to the let- establish an account that meets the re-
ter of notification? quirements of § 556.56.
You have 30 calendar days after you (d) If you do not either pay the pen-
receive the Reviewing Officer’s letter alty or file a timely appeal, BOEM will
to either: take one or more of the following ac-
(a) Request, in writing, a meeting tions:
with the Reviewing Officer; (1) We will collect the amount you
(b) Submit additional information; or were assessed, plus interest, late pay-
(c) Pay the proposed civil penalty.
ment charges, and other fees as pro-
§ 550.1408 When will I be notified of vided by law, from the date you re-
the Reviewing Officer’s decision? ceived the Reviewing Officer’s final de-
At the end of the 30 calendar days or cision until the date we receive pay-
after the meeting and submittal of ad- ment;
ditional information, the Reviewing (2) We may initiate additional en-
Officer will review the case file, includ- forcement, including, if appropriate,
ing all information you submitted, and cancellation of the lease, right-of-way,
send you a decision. The decision will license, permit, or approval, or the for-
include the amount of any final civil feiture of a bond under this part; or
penalty, the basis for the civil penalty, (3) We may bar you from doing fur-
and instructions for paying or appeal- ther business with the Federal Govern-
ing the civil penalty. ment according to Executive Orders
12549 and 12689, and section 2455 of the
§ 550.1409 What are my appeal rights? Federal Acquisition Streamlining Act
(a) When you receive the Reviewing of 1994, 31 U.S.C. 6101. The Department
Officer’s final decision, you have 60 of the Interior’s regulations imple-
days to either pay the penalty or file menting these authorities are found at
an appeal in accordance with 30 CFR 43 CFR part 12, subpart D.
part 590, subpart A.
(b) If you file an appeal, you must ei- FEDERAL OIL AND GAS ROYALTY MAN-
ther: AGEMENT ACT CIVIL PENALTIES DEFI-
(1) Submit a surety bond in the NITIONS
amount of the penalty to the appro-
priate Leasing Office in the Region § 550.1450 What definitions apply to
where the penalty was assessed, fol- this subpart?
lowing instructions that the Reviewing The terms used in this subpart have
Officer will include in the final deci-
the same meaning as in 30 U.S.C. 1702.
sion; or
409
§ 550.1451 30 CFR Ch. V (7–1–18 Edition)
PENALTIES AFTER A PERIOD TO CORRECT long as you do not correct the viola-
tions.
§ 550.1451 What may BOEM do if I vio-
late a statute, regulation, order, or § 550.1454 How may I request a hear-
lease term relating to a Federal oil ing on the record on a Notice of
and gas lease? Noncompliance?
(a) If we believe that you have not You may request a hearing on the
followed any requirement of a statute, record on a Notice of Noncompliance
regulation, order, or lease term for any by filing a request within 30 days of the
Federal oil or gas lease, we may send date you received the Notice of Non-
you a Notice of Noncompliance inform- compliance with the Hearings Division
ing you what the violation is and what (Departmental), Office of Hearings and
you need to do to correct it to avoid Appeals, U.S. Department of the Inte-
civil penalties under 30 U.S.C. 1719(a)
rior, 351 South West Temple, Suite
and (b).
6.300, Salt Lake City, Utah 84101. You
(b) We will serve the Notice of Non- may do this regardless of whether you
compliance by registered mail or per-
correct the violations identified in the
sonal service using the most current
Notice of Noncompliance.
address on file as maintained by the
BOEM Leasing Office in your respec- [76 FR 64623, Oct. 18, 2011, as amended at 80
tive Region. FR 57096, Sept. 22, 2015]
§ 550.1452 What if I correct the viola- § 550.1455 Does my request for a hear-
tion? ing on the record affect the pen-
alties?
The matter will be closed if you cor-
rect all of the violations identified in (a) If you do not correct the viola-
the Notice of Noncompliance within 20 tions identified in the Notice of Non-
days after you receive the Notice (or compliance, the penalties will continue
within a longer time period specified in to accrue even if you request a hearing
the Notice). on the record.
(b) You may petition the Hearings
§ 550.1453 What if I do not correct the Division (Departmental) of the Office
violation? of Hearings and Appeals, to stay the
(a) We may send you a Notice of Civil accrual of penalties pending the hear-
Penalty if you do not correct all of the ing on the record and a decision by the
violations identified in the Notice of Administrative Law Judge under
Noncompliance within 20 days after § 550.1472.
you receive the Notice of Noncompli- (1) You must file your petition within
ance (or within a longer time period 45 calendar days of receiving the Notice
specified in that Notice). The Notice of of Noncompliance.
Civil Penalty will tell you how much (2) To stay the accrual of penalties,
penalty you must pay. The penalty you must post a bond or other surety
may be up to $500 per day, beginning instrument, or demonstrate financial
solvency, using the standards and re-
compliance, for each violation identi-
quirements as prescribed in §§ 550.1490
fied in the Notice of Noncompliance for
through 550.1497, for the principal
as long as you do not correct the viola-
tions. amount of any unpaid amounts due
that are the subject of the Notice of
(b) If you do not correct all of the
Noncompliance, including interest
violations identified in the Notice of
Noncompliance within 40 days after thereon, plus the amount of any pen-
you receive the Notice of Noncompli- alties accrued before the date a stay
ance (or 20 days following the expira- becomes effective.
tion of a longer time period specified in (3) The Hearings Division will grant
that Notice), we may increase the pen- or deny the petition under 43 CFR
alty to up to $5,000 per day, beginning 4.21(b).

compliance, for each violation for as
410
§ 550.1456 May I request a hearing on your address of record as specified

the record regarding the amount of under 30 CFR part 1218, subpart H.
a civil penalty if I did not request a
hearing on the Notice of Non- § 550.1462 How may I request a hear-
compliance? ing on the record on a Notice of
(a) You may request a hearing on the Noncompliance regarding viola-
record to challenge only the amount of tions without a period to correct?
a civil penalty when you receive a No- You may request a hearing on the
tice of Civil Penalty, if you did not pre- record of a Notice of Noncompliance
viously request a hearing on the record regarding violations without a period
under § 550.1454. If you did not request a to correct by filing a request within 30
hearing on the record on the Notice of days after you receive the Notice of
Noncompliance under § 550.1454, you Noncompliance with the Hearings Divi-
may not contest your underlying li- sion (Departmental), Office of Hearings
ability for civil penalties. and Appeals, U.S. Department of the
(b) You must file your request within
Interior, 351 South West Temple, Suite
10 days after you receive the Notice of
6.300, Salt Lake City, Utah 84101. You
Civil Penalty with the Hearings Divi-
sion (Departmental), Office of Hearings may do this regardless of whether you
and Appeals, U.S. Department of the correct the violations identified in the
Interior, 351 South West Temple, Suite Notice of Noncompliance.
6.300, Salt Lake City, Utah 84101. [76 FR 64623, Oct. 18, 2011, as amended at 80
[76 FR 64623, Oct. 18, 2011, as amended at 80 FR 57096, Sept. 22, 2015]
FR 57096, Sept. 22, 2015]
§ 550.1463 Does my request for a hear-
PENALTIES WITHOUT A PERIOD TO ing on the record affect the pen-
CORRECT alties?
(a) If you do not correct the viola-
§ 550.1460 May I be subject to pen- tions identified in the Notice of Non-
alties without prior notice and an
opportunity to correct? compliance regarding violations with-
out a period to correct, the penalties
The Federal Oil and Gas Royalty will continue to accrue even if you re-
Management Act sets out several spe-
quest a hearing on the record.
cific violations for which penalties ac-
(b) You may ask the Hearings Divi-
crue without an opportunity to first
correct the violation. sion (Departmental) to stay the ac-
(a) [Reserved] crual of penalties pending the hearing
(b) Under 30 U.S.C. 1719(d), you may on the record and a decision by the Ad-
be subject to civil penalties of up to ministrative Law Judge under
$25,000 per day for each day each viola- § 550.1472.
tion continues if you: (1) You must file your petition within
(1) Knowingly or willfully prepare, 45 calendar days after you receive the
maintain, or submit false, inaccurate, Notice of Noncompliance.
or misleading reports, notices, affida- (2) To stay the accrual of penalties,
vits, records, data, or other written in- you must post a bond or other surety
formation; instrument, or demonstrate financial
(2)–(3) [Reserved] solvency, using the standards and re-
quirements as prescribed in §§ 550.1490
§ 550.1461 How will BOEM inform me through 550.1497, for the principal
of violations without a period to
correct? amount of any unpaid amounts due
that are the subject of the Notice of
We will inform you of any violation,
Noncompliance, including interest
without a period to correct, by issuing
thereon, plus the amount of any pen-
a Notice of Noncompliance and Civil
alties accrued before the date a stay
Penalty explaining the violation, how
to correct it, and the penalty assess- becomes effective.
ment. We will serve the Notice of Non- (3) The Hearings Division will grant
compliance and Civil Penalty by reg- or deny the petition under 43 CFR
istered mail or personal service using 4.21(b).
411
§ 550.1464 30 CFR Ch. V (7–1–18 Edition)
§ 550.1464 May I request a hearing on § 550.1473 How may I appeal the Ad-
the record regarding the amount of ministrative Law Judge’s decision?
a civil penalty if I did not request a
hearing on the Notice of Non- If you are adversely affected by the
compliance? Administrative Law Judge’s decision,
you may appeal that decision to the In-
(a) You may request a hearing on the terior Board of Land Appeals under 43
record to challenge only the amount of CFR part 4, subpart E.
a civil penalty when you receive a No-
tice of Civil Penalty regarding viola- § 550.1474 May I seek judicial review
tions without a period to correct, if of the decision of the Interior
you did not previously request a hear- Board of Land Appeals?
ing on the record under § 550.1462. If you Under 30 U.S.C. 1719(j), you may seek
did not request a hearing on the record judicial review of the decision of the
on the Notice of Noncompliance under Interior Board of Land Appeals. A suit
§ 550.1462, you may not contest your un- for judicial review in the District Court
derlying liability for civil penalties. will be barred unless filed within 90
(b) You must file your request within days after the final order.
10 days after you receive Notice of Civil
Penalty with the Hearings Division § 550.1475 When must I pay the pen-
(Departmental), Office of Hearings and alty?
Appeals, U.S. Department of the Inte- (a) You must pay the amount of the
rior, 351 South West Temple, Suite Notice of Civil Penalty issued under
6.300, Salt Lake City, Utah 84101. § 550.1453 or § 550.1461, if you do not re-
[76 FR 64623, Oct. 18, 2011, as amended at 80 quest a hearing on the record under
FR 57096, Sept. 22, 2015] § 550.1454, § 550.1456, § 550.1462, or
§ 550.1464
GENERAL PROVISIONS (b) If you request a hearing on the
record under § 550.1454, § 550.1456,
§ 550.1470 How does BOEM decide § 550.1462, or § 550.1464, but you do not
what the amount of the penalty appeal the determination of the Ad-
should be? ministrative Law Judge to the Interior
We determine the amount of the pen- Board of Land Appeals under § 550.1473,
alty by considering the severity of the you must pay the amount assessed by
violations, your history of compliance, the Administrative Law Judge.
and if you are a small business. (c) If you appeal the determination of
the Administrative Law Judge to the
§ 550.1471 Does the penalty affect Interior Board of Land Appeals, you
whether I owe interest? must pay the amount assessed in the
If you do not pay the penalty by the IBLA decision.
date required under § 550.1475(d), BOEM (d) You must pay the penalty as-
will assess you late payment interest sessed within 40 days after:
on the penalty amount at the same (1) You received the Notice of Civil
rate interest is assessed under 30 CFR Penalty, if you did not request a hear-
1218.54. ing on the record under either § 550.1454,
§ 550.1456, § 550.1462, or § 550.1464;
§ 550.1472 How will the Office of Hear- (2) You received an Administrative
ings and Appeals conduct the hear- Law Judge’s decision under § 550.1472, if
ing on the record? you obtained a stay of the accrual of
If you request a hearing on the penalties pending the hearing on the
record under § 550.1454, § 550.1456, record under § 550.1455(b) or § 550.1463(b)
§ 550.1462, or § 550.1464, the hearing will and did not appeal the Administrative
be conducted by a Departmental Ad- Law Judge’s determination to the
ministrative Law Judge from the Of- IBLA under § 550.1473;
fice of Hearings and Appeals. After the (3) You received an IBLA decision
hearing, the Administrative Law Judge under § 550.1473 if the IBLA continued
will issue a decision in accordance with the stay of accrual of penalties pending
the evidence presented and applicable its decision and you did not seek judi-
law. cial review of the IBLA’s decision; or
412
(4) A final non-appealable judgment BONDING REQUIREMENTS

of a court of competent jurisdiction is
entered, if you sought judicial review § 550.1490 What standards must my
of the IBLA’s decision and the Depart- BOEM-specified surety instrument
meet?
ment or the appropriate court sus-
pended compliance with the IBLA’s de- (a) A BOEM-specified surety instru-
cision pending the adjudication of the ment must be in a form specified in
case. BOEM instructions. BOEM will give
(e) If you do not pay, that amount is you written information and standard
subject to collection under the provi- forms for BOEM-specified surety in-
sions of § 550.1477. strument requirements.
(b) BOEM will use a bank-rating serv-
§ 550.1476 Can BOEM reduce my pen- ice to determine whether a financial
alty once it is assessed? institution has an acceptable rating to
Under 30 U.S.C. 1719(g), the Director provide a surety instrument adequate
or his or her delegate may compromise to indemnify the lessor from loss or
or reduce civil penalties assessed under damage.
this part. (1) Administrative appeal bonds must
be issued by a qualified surety com-
§ 550.1477 How may BOEM collect the pany which the Department of the
penalty? Treasury has approved.
(2) Irrevocable letters of credit or
(a) BOEM may use all available
certificates of deposit must be from a
means to collect the penalty including,
financial institution acceptable to
but not limited to:
BOEM with a minimum 1-year period
(1) Requiring the lease surety, for of coverage subject to automatic re-
amounts owed by lessees, to pay the newal up to 5 years.
penalty;
(2) Deducting the amount of the pen- § 550.1491 How will BOEM determine
alty from any sums the United States the amount of my bond or other
owes to you; and surety instrument?
(3) Using judicial process to compel (a) BOEM bond-approving officer may
your payment under 30 U.S.C. 1719(k). approve your surety if he or she deter-
(b) If the Department uses judicial mines that the amount is adequate to
process, or if you seek judicial review guarantee payment. The amount of
under § 550.1474 and the court upholds your surety may vary depending on the
assessment of a penalty, the court form of the surety and how long the
shall have jurisdiction to award the surety is effective.
amount assessed plus interest assessed (1) The amount of the BOEM-speci-
from the date of the expiration of the fied surety instrument must include
90-day period referred to in § 550.1474. the principal amount owed under the
The amount of any penalty, as finally Notice of Noncompliance or Notice of
determined, may be deducted from any Civil Penalty plus any accrued interest
sum owing to you by the United States. we determine is owed plus projected in-
terest for a 1-year period.
CRIMINAL PENALTIES (2) Treasury book-entry bond or note
amounts must be equal to at least 120
§ 550.1480 May the United States percent of the required surety amount.
criminally prosecute me for viola-
(b) If your appeal is not decided with-
tions under Federal oil and gas
leases? in 1 year from the filing date, you must
increase the surety amount to cover
If you commit an act for which a additional estimated interest for an-
civil penalty is provided at 30 U.S.C. other 1-year period. You must continue
1719(d) and § 550.1460(b), the United to do this annually on the date your
States may pursue criminal penalties appeal was filed. We will determine the
as provided at 30 U.S.C. 1720, in addi- additional estimated interest and no-

tion to any authority for prosecution tify you of the amount so you can
under other statutes. amend your surety instrument.
413
§ 550.1495 30 CFR Ch. V (7–1–18 Edition)
(c) You may submit a single surety § 550.1496 How will BOEM determine
instrument that covers multiple ap- if I am financially solvent?
peals. You may change the instrument (a) BOEM bond-approving officer will
to add new amounts under appeal or re- determine your financial solvency by
move amounts that have been adju- examining your total net worth, in-
dicated in your favor or that you have cluding, as appropriate, the net worth
paid, if you: of your affiliated entities.
(1) Amend the single surety instru-
(b) If your net worth, minus the
ment annually on the date you filed
amount we would require as surety
your first appeal; and
under §§ 550.1490 and 550.1491 for all or-
(2) Submit a separate surety instru-
ders you have appealed is greater than
ment for new amounts under appeal
$300 million, you are presumptively
until you amend the instrument to
deemed financially solvent, and we will
cover the new appeals.
not require you to post a bond or other
FINANCIAL SOLVENCY REQUIREMENTS surety instrument.
(c) If your net worth, minus the
§ 550.1495 How do I demonstrate finan- amount we would require as surety
cial solvency? under §§ 550.1490 and 550.1491 for all or-
(a) To demonstrate financial sol- ders you have appealed is less than $300
vency under this part, you must submit million, you must submit the following
an audited consolidated balance sheet, to BOEM by one of the methods in
and, if requested by the BOEM bond-ap- § 550.1495(a):
proving officer, up to 3 years of tax re- (1) A written request asking us to
turns to BOEM using the U.S. Postal consult a business-information, or
Service, private delivery, courier, or credit-reporting service or program to
overnight delivery at: determine your financial solvency; and
(1) For Alaska OCS: BOEM Alaska (2) A nonrefundable $50 processing
OCS Region, 3801 Centerpoint Drive, fee:
Suite 500, Anchorage, AK 99503, (907) (i) You must pay the processing fee
334–5200. to us following the requirements for
(2) For Gulf of Mexico and Atlantic making payments found in 30 CFR
OCS: BOEM Gulf of Mexico OCS Re- 550.126. You are required to use Elec-
gion, 1201 Elmwood Park Boulevard, tronic Funds Transfer (EFT) for these
New Orleans, LA 70123–2394, (800) 200– payments;
4853. (ii) You must submit the fee with
(3) For Pacific OCS: BOEM Pacific your request under paragraph (c)(1) of
OCS Region, 760 Paseo Camarillo, Suite this section, and then annually on the
102 (CM 102), Camarillo, CA 93010, (805) date we first determined that you dem-
384–6305. onstrated financial solvency, as long as
(b) You must submit an audited con- you are not able to demonstrate finan-
solidated balance sheet annually, and, cial solvency under paragraph (a) of
if requested, additional annual tax re- this section and you have active ap-
turns on the date BOEM first deter- peals.
mined that you demonstrated financial (d) If you request that we consult a
solvency as long as you have active ap- business-information or credit-report-
peals, or whenever BOEM requests. ing service or program under paragraph
(c) If you demonstrate financial sol- (c) of this section:
vency in the current calendar year, you (1) We will use criteria similar to
are not required to redemonstrate fi- that which a potential creditor would
nancial solvency for new appeals of or- use to lend an amount equal to the
ders during that calendar year unless bond or other surety instrument we
you file for protection under any provi- would require under §§ 550.1490 and
sion of the U.S. Bankruptcy Code (Title 550.1491;
11 of the United States Code), or BOEM (2) For us to consider you financially
notifies you that you must redem- solvent, the business-information or
onstrate financial solvency. credit-reporting service or program

[76 FR 64623, Oct. 18, 2011, as amended at 80 must demonstrate your degree of risk
FR 57096, Sept. 22, 2015] as low to moderate:
414
(i) If our bond-approving officer de- 551.6 Obligations and rights under a permit
termines that the business-information or a Notice.
or credit-reporting service or program 551.7 Test drilling activities under a permit.
information demonstrates your finan- 551.8 Inspection and reporting requirements
cial solvency to our satisfaction, our for activities under a permit.
bond-approving officer will not require 551.9 Temporarily stopping, canceling, or
relinquishing activities approved under a
you to post a bond or other surety in-
permit.
strument under §§ 550.1490 and 550.1491;
551.10 Penalties and appeals.
(ii) If our bond-approving officer de- 551.11 Submission, inspection, and selection
termines that the business-information of geological data and information col-
or credit-reporting service or program lected under a permit and processed by
information does not demonstrate your permittees or third parties.
financial solvency to our satisfaction, 551.12 Submission, inspection, and selection
our bond-approving officer will require of geophysical data and information col-
you to post a bond or other surety in- lected under a permit and processed by
strument under §§ 550.1490 and 550.1491 permittees or third parties.
or pay the obligation. 551.13 Reimbursement for the costs of repro-
ducing data and information and certain
§ 550.1497 When will BOEM monitor processing costs.
my financial solvency? 551.14 Protecting and disclosing data and
information submitted to BOEM under a
(a) If you are presumptively finan- permit.
cially solvent under § 550.1496(b), BOEM 551.15 Authority for information collection.
will determine your net worth as de-
scribed under §§ 550.1496(b) and (c) to AUTHORITY: Section 104, Public Law 97–451,
evaluate your financial solvency at 96 Stat. 2451 (30 U.S.C. 1714), Public Law 109–
least annually on the date we first de- 432, Div C, Title I, 120 Stat. 3000; 30 U.S.C.
1751; 31 U.S.C. 9701; 43 U.S.C. 1334; 33 U.S.C.
termined that you demonstrated finan-
2704, 2716; E.O. 12777, as amended; 43 U.S.C.
cial solvency as long as you have ac- 1331 et seq., 43 U.S.C. 1337.
tive appeals and each time you appeal
a new order. SOURCE: 76 FR 64623, Oct. 18, 2011, unless
(b) If you ask us to consult a busi- otherwise noted.
ness-information or credit-reporting
service or program under § 550.1496(c),
we will consult a service or program Terms used in this part have the fol-
annually as long as you have active ap- lowing meaning:
peals and each time you appeal a new Act means the Outer Continental
order. Shelf Lands Act (OCSLA), as amended
(c) If our bond-approving officer de- (43 U.S.C. 1331 et seq.).
termines that you are no longer finan- Analyzed geological information means
cially solvent, you must post a bond or data collected under a permit or a lease
other BOEM-specified surety instru- that have been analyzed. Analysis may
ment under §§ 550.1490 and 550.1491. include, but is not limited to, identi-
fication of lithologic and fossil con-
Subparts O–S [Reserved] tent, core analyses, laboratory anal-
yses of physical and chemical prop-
PART 551—GEOLOGICAL AND erties, well logs or charts, results from
GEOPHYSICAL (G&G) EXPLO- formation fluid tests, and descriptions
of hydrocarbon occurrences or haz-
RATIONS OF THE OUTER CONTI- ardous conditions.
NENTAL SHELF Archaeological interest means capable
of providing scientific or humanistic
Sec.
understanding of past human behavior,
551.1 Definitions.
cultural adaptation, and related topics
551.2 Purpose of this part.
551.3 Authority and applicability of this
through the application of scientific or
scholarly techniques, such as con-
part.
551.4 Types of G&G activities that require trolled observation, contextual meas-
permits or Notices. urements, controlled collection, anal-
551.5 Applying for permits or filing Notices. ysis, interpretation, and explanation.
415
§ 551.1 30 CFR Ch. V (7–1–18 Edition)
Archaeological resources mean any ma- time. The term does not include com-
terial remains of human life or activi- mercial geological or geophysical ex-
ties that are at least 50 years of age ploration or research.
and of archaeological interest. Geological exploration means explo-
Coastal environment means the phys- ration that uses geological and geo-
ical, atmospheric, and biological com- chemical techniques (e.g., coring and
ponents, conditions, and factors that test drilling, well logging, and bottom
interactively determine the produc- sampling) to produce data and informa-
tivity, state, condition, and quality of tion on oil, gas, and sulphur resources
the terrestrial ecosystem from the in support of possible exploration and
shoreline inward to the boundaries of development activities. The term does
the coastal zone. not include geological scientific re-
Coastal Zone means the coastal search.
waters (including the lands therein and Geological information means geologi-
thereunder) and the adjacent cal or geochemical data that have been
shorelands (including the waters there- analyzed, processed, or interpreted.
in and thereunder), strongly influenced Geophysical data means measure-
by each other and in proximity to the ments that have not been processed or
shorelines of the several coastal States interpreted.
and extends seaward to the outer limit Geophysical exploration means explo-
of the U.S. territorial sea. ration that utilizes geophysical tech-
Coastal Zone Management Act means niques (e.g., gravity, magnetic, electro-
the Coastal Zone Management Act of magnetic, or seismic) to produce data
1972, as amended (16 U.S.C. 1451 et seq.). and information on oil, gas, and sul-
Data means facts, statistics, meas- phur resources in support of possible
urements, or samples that have not exploration and development activi-
been analyzed, processed, or inter- ties. The term does not include geo-
preted. physical scientific research.
Deep stratigraphic test means drilling Geophysical information means geo-
that involves the penetration into the physical data that have been processed
sea bottom of more than 500 feet (152 or interpreted.
meters). Governor means the Governor of a
Director means the Director of the State or the person or entity lawfully
Bureau of Ocean Energy Management, designated to exercise the powers
U.S. Department of the Interior, or a granted to a Governor pursuant to the
subordinate authorized to act on the Act.
Director’s behalf. Human environment means the phys-
Exploration means the commercial ical, social, and economic components,
search for oil, gas, and sulphur. Activi- conditions, and factors which inter-
ties classified as exploration include, actively determine the state, condi-
but are not limited to: tion, and quality of living conditions,
(1) Geological and geophysical ma- employment, and health of those af-
rine and airborne surveys where mag- fected, directly or indirectly, by activi-
netic, gravity, seismic reflection, seis- ties occurring on the OCS.
mic refraction, gas sniffers, coring, or Hydrocarbon occurrence means the di-
other systems are used to detect or rect or indirect detection during drill-
imply the presence of oil, gas, or sul- ing operations of any liquid or gaseous
phur; and hydrocarbons by examination of well
(2) Any drilling, whether on or off a cuttings, cores, gas detector readings,
geological structure. formation fluid tests, wireline logs, or
Geological and geophysical scientific re- by any other means. The term does not
search means any oil, gas, or sulphur include background gas, minor accu-
related investigation conducted in the mulations of gas, or heavy oil residues
OCS for scientific and/or research pur- on cuttings and cores.
poses. Geological, geophysical, and Interpreted geological information
geochemical data and information means knowledge, often in the form of
gathered and analyzed are made avail- schematic cross sections, 3-dimen-
able to the public for inspection and re- sional representations, and maps, de-
production at the earliest practicable veloped by determining the geological
416
significance of geological data and ana- are subject to its jurisdiction and con-
lyzed and processed geologic informa- trol.
tion. Permit means the contract or agree-
Interpreted geophysical information ment, other than a lease, issued pursu-
means knowledge, often in the form of ant to this part, under which a person
seismic cross sections, 3-dimensional acquires the right to conduct on the
representations, and maps, developed OCS, in accordance with appropriate
by determining the geological signifi- statutes, regulations, and stipulations:
cance of geophysical data and proc- (1) Geological exploration for mineral
essed geophysical information. resources;
Lease means an agreement which is (2) Geophysical exploration for min-
issued under section 8 or maintained eral resources;
under section 6 of the Act and which (3) Geological scientific research; or
authorizes exploration for, and devel- (4) Geophysical scientific research.
opment and production of, minerals or Permittee means the person author-
the area covered by that authorization, ized by a permit issued pursuant to
whichever is required by the context. this part to conduct activities on the
Lessee means a person who has en- OCS.
tered into, or is the BOEM approved as- Person means a citizen or national of
signee of, a lease with the United the United States; an alien lawfully ad-
States to explore for, develop, and mitted for permanent residence in the
produce the leased minerals. The term United States as defined in section 8
‘‘lessee’’ also includes an owner of op- U.S.C. 1101(a)(20); a private, public, or
erating rights. municipal corporation organized under
Marine environment means the phys- the laws of the United States or of any
ical, atmospheric, and biological com- State or territory thereof; and associa-
ponents, conditions, and factors that tions of such citizens, nationals, resi-
interactively determine the quality of dent aliens, or private, public, or mu-
the marine ecosystem in the coastal nicipal corporations, States, or polit-
zone and in the OCS. ical subdivisions of States or anyone
Material remains mean physical evi- operating in a manner provided for by
dence of human habitation, occupation, treaty or other applicable inter-
use, or activity, including the site, lo- national agreements. The term does
cation, or context in which such evi- not include Federal agencies.
dence is situated. Processed geological or geophysical in-
Minerals mean oil, gas, sulphur, formation means data collected under a
geopressured-geothermal and associ- permit and later processed or reproc-
ated resources, and all other minerals essed. Processing involves changing the
which are authorized by an Act of Con- form of data so as to facilitate inter-
gress to be produced from public lands pretation. Processing operations may
as defined in section 103 of the Federal include, but are not limited to, apply-
Land Policy and Management Act of ing corrections for known perturbing
1976 (43 U.S.C. 1702). causes, rearranging or filtering data,
Notice means a written statement of and combining or transforming data
intent to conduct geological or geo- elements. Reprocessing is the addi-
physical scientific research related to tional processing other than ordinary
oil, gas, and sulphur in the OCS other processing used in the general course of
than under a permit. evaluation. Reprocessing operations
Oil, gas, and sulphur means oil, gas, may include varying identified param-
sulphur, geopressured-geothermal, and eters for the detailed study of a specific
associated resources. problem area. Reprocessing may occur
Outer Continental Shelf (OCS) means several years after the original proc-
all submerged lands lying seaward and essing date. Reprocessing is determined
outside the area of lands beneath navi- to be completed on the date that the
gable waters as defined in section 2 of reprocessed information is first avail-
the Submerged Lands Act (43 U.S.C. able in a useable format for in-house
1301), and of which the subsoil and sea- interpretation by BOEM or the per-
bed appertain to the United States and mittee, or becomes first available to
417
§ 551.2 30 CFR Ch. V (7–1–18 Edition)
third parties via sale, trade, license data and information submitted to, and
agreement, or other means. retained by, BOEM.
Secretary means the Secretary of the
Interior or a subordinate authorized to § 551.3 Authority and applicability of
act on the Secretary’s behalf. this part.
Shallow test drilling means drilling BOEM authorizes you to conduct ex-
into the sea bottom to depths less than ploration or scientific research activi-
those specified in the definition of a ties under this part in accordance with
deep stratigraphic test. the Act, the regulations in this part,
Significant archaeological resource orders of the Director/Regional Direc-
means those archaeological resources tor, and other applicable statutes, reg-
that meet the criteria of significance ulations, and amendments.
for eligibility to the National Register
(a) This part does not apply to G&G
of Historic Places as defined in 36 CFR
exploration conducted by or on behalf
60.4.
of the lessee on a lease in the OCS.
Third Party means any person other
Refer to 30 CFR part 250 if you plan to
than the permittee or a representative
of the United States, including all per- conduct G&G activities related to oil,
sons who obtain data or information gas, or sulphur under terms of a lease.
acquired under a permit from the per- (b) Federal agencies are exempt from
mittee, or from another third party, by the regulations in this part.
sale, trade, license agreement, or other (c) G&G exploration or G&G sci-
means. entific research related to minerals
Violation means a failure to comply other than oil, gas, and sulphur is cov-
with any provision of the Act, or a pro- ered by regulations at 30 CFR part 580.
vision of a regulation or order issued
under the Act, or any provision of a § 551.4 Types of G&G activities that re-
lease, license, or permit issued under quire permits or Notices.
the Act. (a) Exploration. You must have a
You means a person who applies for BOEM-approved permit to conduct
and/or obtains a permit, or files a No- G&G exploration, including deep strati-
tice to conduct geological or geographic tests, for oil, gas, or sulphur
physical exploration or scientific re- resources. If you conduct both geologi-
search related to oil, gas, and sulphur cal and geophysical exploration, you
in the OCS. must have a separate permit for each.
(b) Scientific research. You may only
§ 551.2 Purpose of this part.
conduct G&G scientific research re-
(a) To allow you to conduct G&G ac- lated to oil, gas, and sulphur in the
tivities in the OCS related to oil, gas, OCS after you obtain a BOEM-approved
and sulphur on unleased lands or on permit or file a Notice.
lands under lease to a third party. (1) Permit. You must obtain a permit
(b) To ensure that you carry out G&G if the research activities you propose
activities in a safe and environ-
to conduct involve:
mentally sound manner so as to pre-
(i) Using solid or liquid explosives;
vent harm or damage to, or waste of,
any natural resources (including any (ii) Drilling a deep stratigraphic test;
mineral deposit in areas leased or not or
leased), any life (including fish and (iii) Developing data and information
other aquatic life), property, or the for proprietary use or sale.
marine, coastal, or human environ- (2) Notice. Any other G&G scientific
ment. research that you conduct related to
(c) To inform you and third parties of oil, gas, and sulphur in the OCS re-
your legal and contractual obligations. quires you to file a Notice with the Re-
(d) To inform you and third parties of gional Director at least 30 days before
the U.S. Government’s rights to access you begin. If circumstances preclude a
G&G data and information collected 30-day Notice, you must provide oral
under permit in the OCS, reimburse- notification and followup in writing.

ment for submittal of data and infor- You must also inform BOEM in writing
mation, and the proprietary terms of when you conclude your work.
418
§ 551.5 Applying for permits or filing (1) For the OCS off the State of Alas-
Notices. ka—the Regional Supervisor for Re-
(a) Permits. You must submit a signed source Evaluation, Bureau of Ocean
original and three copies of the BOEM Energy Management, Alaska OCS Re-
permit application form (Form BOEM– gion, 3801 Centerpoint Drive, Suite 500,
0327). The form includes names of per- Anchorage, Alaska 99503.
sons; the type, location, purpose, and (2) For the OCS off the Atlantic
dates of activity; and environmental Coast and in the Gulf of Mexico—the
and other information. A nonrefund- Regional Supervisor for Resource Eval-
able service fee of $2,012 must be paid uation, Bureau of Ocean Energy Man-
electronically through Pay.gov at: agement, Gulf of Mexico OCS Region,
https://www.pay.gov/paygov/, and you 1201 Elmwood Park Boulevard, New Or-
must include a copy of the Pay.gov con- leans, Louisiana 70123–2394.
firmation receipt page with your appli- (3) For the OCS off the coast of the
cation. States of California, Oregon, Wash-
ington, or Hawaii—the Regional Super-
(b) Disapproval of permit application. If
visor for Resource Evaluation, Bureau
BOEM disapproves your application for
of Ocean Energy Management, Pacific
a permit, the Regional Director will
OCS Region, 760 Paseo Camarillo, Suite
state the reasons for the denial and
102 (CM 102), Camarillo, California
will advise you of the changes needed
93010.
to obtain approval.
(c) Notices. You must sign and date a [76 FR 64623, Oct. 18, 2011, as amended at 80
Notice and state: FR 57096, Sept. 22, 2015]
(1) The name(s) of the person(s) who
§ 551.6 Obligations and rights under a
will conduct the proposed research; permit or a Notice.
(2) The name(s) of any other person(s)
participating in the proposed research, While conducting G&G exploration or
including the sponsor; scientific research activities under
(3) The type of research and a brief BOEM permit or Notice:
(a) You must not:
description of how you will conduct it;
(1) Interfere with or endanger oper-
(4) The location in the OCS, indicated
ations under any lease, right-of-way,
on a map, plat, or chart, where you will
easement, right-of-use, Notice, or per-
conduct research;
mit issued or maintained under the
(5) The proposed dates you project for Act;
your research activity to start and end; (2) Cause harm or damage to life (in-
(6) The name, registry number, reg- cluding fish and other aquatic life),
istered owner, and port of registry of property, or to the marine, coastal, or
vessels used in the operation; human environment;
(7) The earliest practicable time you (3) Cause harm or damage to any
expect to make the data and informa- mineral resource (in areas leased or not
tion resulting from your research ac- leased);
tivity available to the public; (4) Cause pollution;
(8) Your plan of how you will make (5) Disturb archaeological resources;
the data and information you collected (6) Create hazardous or unsafe condi-
available to the public; tions; or
(9) That you and others involved will (7) Unreasonably interfere with or
not sell or withhold for exclusive use cause harm to other uses of the area.
the data and information resulting (b) You must immediately report to
from your research; and the Regional Director if you:
(10) At your option, you may submit (1) Detect hydrocarbon occurrences;
(as a substitute for the material re- (2) Detect environmental hazards
quired in paragraphs (c)(7), (c)(8), and which imminently threaten life and
(c)(9) of this section) the nonexclusive property; or
use agreement for scientific research (3) Adversely affect the environment,
attachment to Form BOEM–0327. aquatic life, archaeological resources,
(d) Filing locations. You must apply or other uses of the area where you are
for a permit or file a Notice at one of conducting exploration or scientific re-
the following locations: search activities.
419
§ 551.7 30 CFR Ch. V (7–1–18 Edition)
(c) You must also consult and coordi- cleanup plans, and onshore disposal
nate your G&G activities with other procedures;
users of the area for navigation and (iii) The location of each deep strati-
safety purposes. graphic test you will conduct, includ-
(d) Any persons conducting shallow ing the location of the surface and pro-
test drilling or deep stratigraphic test jected bottomhole of the borehole;
drilling activities under a permit must (iv) The types of geological and geo-
use the best available and safest tech- physical survey instruments you will
nologies that the Regional Director de- use before and during drilling;
termines to be economically feasible. (v) Seismic, bathymetric, sidescan
(e) You may not claim any oil, gas, sonar, magnetometer, or other geo-
sulphur, or other minerals you discover physical data and information suffi-
while conducting operations under a cient to evaluate seafloor characteris-
permit or Notice. tics, shallow geologic hazards, and
structural detail across and in the vi-
§ 551.7 Test drilling activities under a
permit. cinity of the proposed test to the total
depth of the proposed test well; and
(a) Shallow test drilling. Before you (vi) Other relevant data and informa-
begin shallow test drilling under a per- tion that the BOEM Regional Director
mit, the Regional Director may require requires.
you to: (2) Environmental report. The environ-
(1) Gather and submit seismic, bathy- mental report must include all of the
metric, sidescan sonar, magnetometer, following material:
or other geophysical data and informa- (i) A summary with data and infor-
tion to determine shallow structural
mation available at the time you sub-
detail across and in the vicinity of the
mitted the related drilling plan. BOEM
proposed test.
will consider site-specific data and in-
(2) Submit information for coastal formation developed since the most re-
zone consistency certification accord-
cent environmental impact statement
ing to paragraphs (b)(3) and (4) of this
or other environmental impact anal-
section, and for protecting archae-
ysis in the immediate area. The sum-
ological resources according to para-
mary must meet the following require-
graph (b)(5) of this section.
ments:
(3) Allow all interested parties the
(A) You must concentrate on the
opportunity to participate in the shal-
low test according to paragraph (c) of issues specific to the site(s) of drilling
this section, and meet bonding require- activity. However, you only need to
ments according to paragraph (d) of summarize data and information dis-
this section. cussed in any environmental reports,
analyses, or impact statements pre-
(b) Deep stratigraphic tests. You must
pared for the geographic area of the
submit to the appropriate BOEM or
drilling activity.
BSEE Regional Director, at the address
in § 551.7(d), a drilling plan (submitted (B) You must list referenced mate-
to BOEM), an environmental report rial. Include brief descriptions and a
(submitted to BOEM), an Application statement of where the material is
for Permit to Drill (Form BSEE–0123) available for inspection.
(submitted to BSEE), and a Supple- (C) You must refer only to data that
mental APD Information Sheet (Form are available to BOEM.
BSEE–0123S) (submitted to BSEE) as (ii) Details about your project such
follows: as:
(1) Drilling plan. The drilling plan (A) A list and description of new or
must include: unusual technologies;
(i) The proposed type, sequence, and (B) The location of travel routes for
timetable of drilling activities; supplies and personnel;
(ii) A description of your drilling rig, (C) The kinds and approximate levels
indicating the important features with of energy sources;

special attention to safety, pollution (D) The environmental monitoring
prevention, oil-spill containment and systems; and
420
(E) Suitable maps and diagrams (5) Protecting archaeological resources.

showing details of the proposed project If the Regional Director believes that
layout. an archaeological resource may exist
(iii) A description of the existing en- in the area that may be affected by
vironment. For this section, you must drilling, the Regional Director will no-
include the following information on tify you of the need to prepare an ar-
the area: chaeological report.
(A) Geology; (i) If the evidence suggests that an
(B) Physical oceanography; archaeological resource may be
(C) Other uses of the area; present, you must:
(D) Flora and fauna; (A) Locate the site of the drilling so
(E) Existing environmental moni- as to not adversely affect the area
toring systems; and where the archaeological resources
(F) Other unusual or unique charac- may be, or
teristics that may affect or be affected (B) Establish to the satisfaction of
by the drilling activities. the BOEM Regional Director that an
(iv) A description of the probable im- archaeological resource does not exist
pacts of the proposed action on the en- or will not be adversely affected by
vironment and the measures you pro- drilling. This must be done by further
pose for mitigating these impacts. archaeological investigation, con-
(v) A description of any unavoidable ducted by an archaeologist and a geo-
or irreversible adverse effects on the physicist, using survey equipment and
environment that could occur. techniques deemed necessary by the
(vi) Other relevant data that the Regional Director. A report on the in-
BOEM Regional Director requires. vestigation must be submitted to the
BOEM Regional Director for review.
(3) Copies for coastal States. You must
submit copies of the drilling plan and (ii) If the BOEM Regional Director
environmental report to the BOEM Re- determines that an archaeological re-
gional Director for transmittal to the source is likely to be present in the
Governor of each affected coastal State area that may be affected by drilling,
and the coastal zone management and may be adversely affected by drill-
agency of each affected coastal State ing, the BOEM Regional Director will
that has an approved program under notify you immediately. You must
the Coastal Zone Management Act. take no action that may adversely af-
(BOEM Regional Director will make fect the archaeological resource unless
the drilling plan and environmental re- an investigation by BOEM determines
port available to appropriate Federal that the resource is not
agencies and the public according to archaeologically significant.
the Department of the Interior’s poli- (iii) If you discover any archae-
cies and procedures). ological resource while drilling, you
(4) Certification of coastal zone manage- must immediately halt drilling and re-
ment program consistency and State con- port the discovery to the BOEM Re-
currence. When required under an ap- gional Director. If investigations deter-
proved coastal zone management pro- mine that the resource is significant,
gram of an affected State, your drilling the BOEM Regional Director will in-
plan must include a certification that form you how to protect it.
the proposed activities described in the (6) [Reserved]
plan comply with enforceable policies (7) Revising an approved drilling plan.
of, and will be conducted in a manner Before you revise an approved drilling
consistent with such State’s program. plan, you must obtain the BOEM Re-
BOEM Regional Director may not ap- gional Director’s approval.
prove any of the activities described in (8) [Reserved]
the drilling plan unless the State con- (9) Deadline for completing a deep strat-
curs with the consistency certification igraphic test. If your deep stratigraphic
or the Secretary of Commerce makes test well is within 50 geographic miles
the finding authorized by section of a tract that BOEM has identified for
307(c)(3)(B)(iii) of the Coastal Zone a future lease sale, as listed on the cur-
Management Act. rently approved OCS leasing schedule,
421
§ 551.7 30 CFR Ch. V (7–1–18 Edition)
you must complete all drilling activi- (ii) Forward a copy of the published
ties and submit the data and informa- statement to the Regional Director;
tion to the BOEM Regional Director at (iii) Allow at least 30 days from the
least 60 days before the first day of the summary statement publication date
month in which BOEM schedules the for other persons to join as original
lease sale. However, the BOEM Re- participants;
gional Director may extend your per- (iv) Compute the estimated cost by
mit duration to allow you to complete dividing the estimated total cost of the
drilling activities and submit data and program by the number of original par-
information if the extension is in the
ticipants; and
National interest.
(c) Group participation in test drilling. (v) Furnish the Regional Director
BOEM encourages group participation with a complete list of all participants
for deep stratigraphic tests. before starting operations, or at the
(1) Purpose of group participation. The end of the advertising period if you
purpose is to minimize duplicative begin operations before the advertising
G&G activities involving drilling into period is over. The names of any subse-
the seabed of the OCS. quent or late participants must also be
(2) Providing opportunity for participa- furnished to the Regional Director.
tion in a deep stratigraphic test. When (5) Changes to the original application
you propose to drill a deep strati- for test drilling. If you propose changes
graphic test, you must give all inter- to the original application and the Re-
ested persons an opportunity to par- gional Director determines that the
ticipate in the test drilling through a changes are significant, the Regional
signed agreement on a cost-sharing Director will require you to publish the
basis. You may include a penalty for changes for an additional 30 days to
late participation of not more than 100 give other persons a chance to join as
percent of the cost to each original original participants.
participant in addition to the original (d) Bonding requirements. You must
share cost. submit a bond under this part before
(i) The participants must assess and you may start a deep stratigraphic
distribute late participation penalties
test.
in accordance with the terms of the
(1) Before BOEM issues a permit au-
agreement.
(ii) For a significant hydrocarbon oc- thorizing the drilling of a deep strati-
currence that the Regional Director graphic test, you must either:
announces to the public, the penalty (i) Furnish to BOEM a bond of not
for subsequent late participants may less than $200,000 that guarantees com-
be raised to not more than 300 percent pliance with all the terms and condi-
of the cost of each original participant tions of the permit; or
in addition to the original share cost. (ii) Maintain a $1 million bond that
(3) Providing opportunity for participa- guarantees compliance with all the
tion in a shallow test drilling project. terms and conditions of the permit you
When you apply to conduct shallow hold for the OCS area where you pro-
test drilling activities, you must, if or- pose to drill.
dered by the Regional Director or re- (2) You must provide additional secu-
quired by the permit, give all inter- rity to BOEM if the Regional Director
ested persons an opportunity to par- determines that it is necessary for the
ticipate in the test activity on a cost- permit or area.
sharing basis. You may include a pen- (3) The Regional Director may re-
alty provision for late participation of quire you to provide a bond, in an
not more than 50 percent of the cost to amount the Regional Director pre-
each original participant in addition to scribes, before authorizing you to drill
the original share cost. a shallow test well.
(4) Procedures for group participation
(4) Your bond must be on a form ap-
in drilling activities. You must:
proved by the Deputy Director.

(i) Publish a summary statement
that describes the approved activity in [76 FR 64623, Oct. 18, 2011, as amended at 80
a relevant trade publication; FR 57097, Sept. 22, 2015]
422
§ 551.8 Inspection and reporting re- ological resources, or other uses of the
quirements for activities under a area in which the activities were con-
permit. ducted.
(a) Inspection of permit activities. You (v) Other descriptions of the activi-
must allow BOEM representatives to ties conducted as specified by the Re-
inspect your exploration or scientific gional Director.
research activities under a permit.
They will determine whether oper- § 551.9 Temporarily stopping, can-
ations are adversely affecting the envi- celing, or relinquishing activities
ronment, aquatic life, archaeological approved under a permit.
resources, or other uses of the area. (a) BOEM may temporarily stop ex-
BOEM will reimburse you for food, ploration or scientific research activi-
quarters, and transportation that you ties under a permit when the Regional
provide for BOEM representatives if Director determines that:
you send in your reimbursement re- (1) Activities pose a threat of serious,
quest to the Region that issued the irreparable, or immediate harm. This
permit within 90 days of the inspection. includes damage to life (including fish
(b) Approval for modifications. Before
and other aquatic life), property, any
you begin modified operations, you
mineral deposit (in areas leased or not
must submit a written request describ-
leased), to the marine, coastal, or
ing the modifications and receive the
human environment, or to an archae-
Regional Director’s oral or written ap-
proval. If circumstances preclude a ological resource;
written request, you must make an (2) You failed to comply with any ap-
oral request and follow up in writing. plicable law, regulation, order, or pro-
(c) Reports. (1) You must submit sta- vision of the permit. This would in-
tus reports on a schedule specified in clude BOEM’s required submission of
the permit and include a daily log of reports, well records or logs, and G&G
operations. data and information within the time
(2) You must submit a final report of specified; or
exploration or scientific research ac- (3) Stopping the activities is in the
tivities under a permit within 30 days interest of National security or de-
after the completion of acquisition ac- fense.
tivities under the permit. You may (b) Procedures to temporarily stop ac-
combine the final report with the last tivities. (1) The Regional Director will
status report and must include each of advise you either orally or in writing.
the following: BOEM will confirm an oral notification
(i) A description of the work per- in writing and deliver all written noti-
formed. fications by courier or certified or reg-
(ii) Charts, maps, plats, and digital istered mail. You must halt all activi-
navigational data in a format specified ties under a permit as soon as you re-
by the Regional Director, showing the ceive an oral or written notification.
areas and blocks in which any explo- (2) The Regional Director will advise
ration or permitted scientific research you when you may start your permit
activities were conducted. Identify the activities again.
lines of geophysical traverses and their
(c) Procedure to cancel or relinquish a
locations including a reference suffi-
permit. The Regional Director may can-
cient to identify the data produced dur-
cel, or a permittee may relinquish, a
ing each activity.
(iii) The dates on which you con- permit at any time.
ducted the actual exploration or sci- (1) If BOEM cancels your permit, the
entific research activities. Regional Director will advise you by
(iv) A summary of any: certified or registered mail 30 days be-
(A) Hydrocarbon or sulphur occur- fore the cancellation date and will
rences encountered; state the reason.
(B) Environmental hazards; and (2) You may relinquish the permit by
(C) Adverse effects of the exploration advising the Regional Director by cer-
or scientific research activities on the tified or registered mail 30 days in ad-
environment, aquatic life, archae- vance.
423
§ 551.10 30 CFR Ch. V (7–1–18 Edition)
(3) After BOEM cancels your permit (b) Submission, inspection, and selec-
or you relinquish it, you are still re- tion of geological data and information.
sponsible for proper abandonment of The Regional Director may request the
any drill sites in accordance with the permittee or third party to submit the
requirements of 30 CFR 251.7(b)(8). You analyzed, processed, and interpreted
must also comply with all other obliga- geologic data and information for in-
tions specified in this part or in the spection and/or permanent retention by
permit. BOEM. The data and information must
be submitted within 30 days after such
§ 551.10 Penalties and appeals. request.
(a) Penalties for noncompliance under a (c) Requirements for submission of geo-
permit issued by BOEM. You are subject logical data and information collected
to the penalty provisions of: under a permit. Unless the Regional Di-
(1) Section 24 of the Act (43 U.S.C. rector specifies otherwise, geological
1350); and data and information must include:
(2) The procedures contained in 30 (1) An accurate and complete record
CFR part 550, subpart N, for non- of all geological (including geo-
compliance with: chemical) data and information de-
(i) Any provision of the Act; scribing each operation of analysis,
(ii) Any provision of a G&G or drill- processing, and interpretation;
ing permit; or (2) Paleontological reports identi-
(iii) Any regulation or order issued fying microscopic fossils by depth, in-
under the Act. cluding the reference datum to which
(b) Penalties under other laws and reg- paleontological sample depths are re-
ulations. The penalties prescribed in lated and, if the Regional Director re-
this section are in addition to any quests, washed samples that you main-
other penalty imposed by any other tain for paleontological determina-
law or regulation. tions;
(c) Procedures to appeal orders or deci- (3) Copies of well logs or charts in a
sions BOEM issues. See 30 CFR part 590 digital format, if available;
for instructions on how to appeal any (4) Results and data obtained from
order or decision that we issue under formation fluid tests;
this part. (5) Analyses of core or bottom sam-
ples and/or a representative cut or split
§ 551.11 Submission, inspection, and of the core or bottom sample;
selection of geological data and in- (6) Detailed descriptions of any hy-
formation collected under a permit drocarbons or hazardous conditions en-
and processed by permittees or countered during operations, including
third parties. near losses of well control, abnormal
(a) Availability of geological data and geopressures, and losses of circulation;
information collected under a permit. (1) and
You must notify the Regional Director, (7) Other geological data and infor-
in writing, when you complete the ini- mation that the Regional Director may
tial analysis, processing, or interpreta- specify.
tion of any geological data and infor- (d) Obligations when geological data
mation. Initial analysis and processing and information collected under permit
are the stages of analysis or processing are obtained by a third party. A third
where the data and information first party may obtain geological data and
become available for in-house interpre- information from a permittee, or from
tation by the permittee, or become another third party, by sale, trade, li-
available commercially to third parties cense agreement, or other means. If
via sale, trade, license agreement, or this happens:
other means. (1) The third party recipient of the
(2) The Regional Director may ask if data and information assumes the obli-
you have further analyzed, processed, gations under this section, except for
or interpreted any geological data and the notification provisions of para-
information. When so asked, you must graph (a)(1), and is subject to the pen-
respond to BOEM in writing within 30 alty provisions of 30 CFR part 550, sub-
days. part N; and
424
(2) A permittee or third party that or the Regional Director can request
sells, trades, licenses, or otherwise pro- delivery of the data and information to
vides data and information to a third the appropriate BOEM regional office
party must advise the recipient, in for review.
writing, that accepting these obliga- (1) You must submit the geophysical
tions is a condition precedent of the data and information within 30 days of
sale, trade, license, or other agree- receiving the request, unless the Re-
ment; and gional Director extends the delivery
(3) Except for license agreements, a time.
permittee or third party that sells,
(2) At any time before final selection,
trades, or otherwise provides data and
information to a third party must ad- the Regional Director may return any
vise the Regional Director, in writing or all geophysical data and information
and within 30 days, of the sale, trade, following review. You will be notified
or other agreement, including the iden- in writing of all or portions of those
tity of the recipient of the data and in- data the Regional Director decides to
formation; or retain.
(4) For license agreements a per- (c) Requirements for submission of geo-
mittee or third party that licenses data physical data and information collected
and information to a third party must, under a permit. Unless the Regional Di-
within 30 days of a request by the Re- rector specifies otherwise, you must in-
gional Director, advise the Regional clude:
Director, in writing, of the license (1) An accurate and complete record
agreement, including the identity of of each geophysical survey conducted
the recipient of the data and informa- under the permit, including digital
tion. navigational data and final location
maps;
§ 551.12 Submission, inspection, and
selection of geophysical data and (2) All seismic data collected under a
information collected under a per- permit presented in a format and of a
mit and processed by permittees or quality suitable for processing;
third parties. (3) Processed geophysical informa-
(a) Availability of geophysical data and tion derived from seismic data with ex-
information collected under a permit. (1) traneous signals and interference re-
You must notify the Regional Director, moved, presented in a quality format
in writing, when you complete the ini- suitable for interpretive evaluation, re-
tial processing and interpretation of flecting state-of-the-art processing
any geophysical data and information. techniques; and
Initial processing is the stage of proc- (4) Other geophysical data, processed
essing where the data and information geophysical information, and inter-
become available for in-house interpre- preted geophysical information includ-
tation by the permittee, or become ing, but not limited to, shallow and
available commercially to third parties deep subbottom profiles, bathymetry,
via sale, trade, license agreement, or sidescan sonar, gravity and magnetic
other means. surveys, and special studies such as re-
(2) The Regional Director may ask if
fraction and velocity surveys.
you have further processed or inter-
preted any geophysical data and infor- (d) Obligations when geophysical data
mation. When so asked, you must re- and information collected under a permit
spond to BOEM in writing within 30 are obtained by a third party. A third
days. party may obtain geophysical data,
(b) Submission, inspection and selection processed geophysical information, or
of geophysical data and information col- interpreted geophysical information
lected under a permit. The Regional Di- from a permittee, or from another
rector may request that the permittee third party, by sale, trade, license
or third party submit geophysical data agreement, or other means. If this hap-
and information before making a final pens:
selection for retention. BOEM rep- (1) The third party recipient of the
resentatives may inspect and select the data and information assumes the obli-
data and information on your premises, gations under this section, except for
425
§ 551.13 30 CFR Ch. V (7–1–18 Edition)
the notification provisions of para- or manner other than that used in the
graph (a)(1), and is subject to the pen- normal conduct of business; or
alty provisions of 30 CFR part 550, sub- (2) If you collected the information
part N; and under a permit that BOEM issued to
(2) A permittee or third party that you before October 1, 1985, and the Re-
sells, trades, licenses, or otherwise pro- gional Director requests and retains
vides data and information to a third the information.
party must advise the recipient, in (c) When you request reimbursement,
writing, that accepting these obliga- you must identify reproduction and
tions is a condition precedent of the processing costs separately from acqui-
sale, trade, license, or other agree- sition costs.
ment; and (d) BOEM will not reimburse you or a
(3) Except for license agreements, a third party for data acquisition costs
permittee or third party that sells, or for the costs of analyzing or proc-
trades, or otherwise provides data and essing geological information or inter-
information to a third party must ad- preting geological or geophysical infor-
vise the Regional Director, in writing mation.
and within 30 days, of the sale, trade,
or other agreement, including the iden- § 551.14 Protecting and disclosing data
tity of the recipient of the data and in- and information submitted to
formation; or BOEM under a permit.
(4) For license agreements, a per- (a) Disclosure of data and information
mittee or third party that licenses data to the public by BOEM. (1) In making
and information to a third party must, data and information available to the
within 30 days of a request by the Re- public, the Regional Director will fol-
gional Director, advise the Regional low the applicable requirements of:
Director, in writing, of the license (i) The Freedom of Information Act
agreement, including the identity of (5 U.S.C. 552);
the recipient of the data and informa- (ii) The implementing regulations at
tion. 43 CFR part 2;
(iii) The Act; and
§ 551.13 Reimbursement for the costs (iv) The regulations at 30 CFR parts
of reproducing data and informa-
tion and certain processing costs. 550 and 552.
(2) Except as specified in this section
(a) BOEM will reimburse you or a or in 30 CFR parts 550 and 552, if the
third party for reasonable costs of re- Regional Director determines any data
producing data and information that or information is exempt from public
the Regional Director requests if: disclosure under this paragraph (a),
(1) You deliver G&G data and infor- BOEM will not provide the data and in-
mation to BOEM for the Regional Di- formation to any State or to the execu-
rector to inspect or select and retain tive of any local government or to the
(according to § 551.11 or § 551.12); public, unless you and all third parties
(2) BOEM receives your request for agree to the disclosure.
reimbursement and the Regional Direc- (3) BOEM will keep confidential the
tor determines that the requested re- identity of third party recipients of
imbursement is proper; and data and information collected under a
(3) The cost is at your lowest rate (or permit. BOEM will not release the
a third party’s) or at the lowest com- identity unless you and the third par-
mercial rate established in the area, ties agree to the disclosure.
whichever is less. (4) When you detect any significant
(b) BOEM will reimburse you or the hydrocarbon occurrences or environ-
third party for the reasonable costs of mental hazards on unleased lands dur-
processing geophysical information ing drilling operations, the Regional
(which does not include cost of data ac- Director will immediately issue a pub-
quisition): lic announcement. The announcement
(1) If, at the request of the Regional must further the National interest, but
Director, you processed the geo- without unduly damaging your com-
physical data or information in a form petitive position.
426
(b) Timetable for release of G&G data with paragraphs (b)(1) through (7) of
and information related to oil, gas, and this section.
sulphur that BOEM acquires. Except for (1) If the data and information are
high-resolution data and information not related to a deep stratigraphic test,
released under 30 CFR 550.197(b)(2), BOEM will release them to the public
BOEM will release or disclose acquired in accordance with the following table:
data and information in accordance
If you or a third party submit and BOEM retains . . . The Regional Director will release them to the public . . .
(i) Geological data and information, 10 years after BOEM issued the permit.
(ii) Geophysical data, 50 years after BOEM issued the permit.
(iii) Geophysical information processed or reprocessed less 25 years after BOEM issued the permit.
than 20 years after BOEM issued the germane permit,
(iv) Geophysical information processed or reprocessed 20 or 25 years after BOEM issued the permit; or, if you or a third
more years after BOEM issued the germane permit, party applied for an extension of the proprietary term, 5
years after BOEM approved the application for an extension.
In any case BOEM will release the information no later than
50 years after BOEM issued the permit.
(2) Permittees and third parties may (4) Geophysical information proc-
apply to BOEM for an extension of the essed or reprocessed 20 or more years
25-year proprietary term for geo- after the germane permit was issued
physical information reprocessed 20 or and granted the extension will be sub-
more years after BOEM issued the ger- ject to submission, inspection, and se-
mane permit. You must submit the ap- lection criteria under § 551.12 and reim-
plication to BOEM within 90 days after bursement criteria identified under
completion of the reprocessing, except § 551.13.
during the initial 1-year grace period (5) There was a 1-year grace period,
as provided in paragraph (b)(5) below. that started September 14, 2009, that
Filing locations are listed in § 551.5(d). allowed permittees and third parties
Your application must include: sufficient time to meet the above re-
(i) Name and address of the permittee quirements and apply for all eligible
or third party; extensions. During that time, BOEM
(ii) Product name; did not release geophysical informa-
tion which was reprocessed 20 or more
(iii) Identification of the geophysical
years after the date that the germane
information area;
permit was issued.
(iv) Identification of originating per-
(6) Since September 14, 2010, BOEM
mit number and date;
has resumed releasing eligible reproc-
(v) Description of reprocessing per- essed information. If an application for
formed; extension was not filed, not filed on
(vi) Identification of the date of com- time, or not approved by BOEM, the
pletion of reprocessing the geophysical original 25-year proprietary term ap-
information; plies to the release date of the reproc-
(vii) Certification that the product essed geophysical information.
meets the definition of processed geo- (7) If the data and information are re-
physical information and that all other lated to a deep stratigraphic test,
information in the application is accu- BOEM will release them to the public
rate; and at the earlier of the following times:
(viii) Signature and date. (i) Twenty-five years after you com-
(3) With each new reprocessing of per- plete the test; or
mitted data, you may apply for an ex- (ii) If a lease sale is held after you
tension of up to 5 years. However, the complete a test well, 60-calendar days
maximum proprietary term for geo- after BOEM issues the first lease, any
physical information is 50 years after portion of which is located within 50
the permit was issued. Once the max- geographic miles (92.7 kilometers) of
imum term is reached, the BOEM Re- the test.

gional Director will release the infor- (8) BOEM may allow limited inspec-
mation to the public. tion, but only by persons with a direct
427
§ 551.15 30 CFR Ch. V (7–1–18 Edition)
interest in related BOEM decisions and (iii) An identification of any field, ge-
issues in specific geographic areas, and ological structure, or trap on the OCS
who agree in writing to its confiden- within 3 geographic miles (5.6 kilo-
tiality, of G&G data and information meters) of the seaward boundary of the
submitted under this part that BOEM State.
uses to: (2) After receiving nominations for
(i) Make unitization determinations leasing an area of the OCS within 3 ge-
on two or more leases; ographic miles of the seaward bound-
(ii) Make competitive reservoir de- ary of any coastal State, BOEM will
terminations; carry out a tentative area identifica-
(iii) Ensure proper plans of develop- tion according to 30 CFR part 556, sub-
ment for competitive reservoirs; parts D and E. At that time, the Re-
(iv) Promote operational safety; gional Director will consult with the
(v) Protect the environment; Governor to determine whether any
(vi) Make field determinations; or tracts further considered for leasing
(vii) Determine eligibility for royalty may contain any oil or gas reservoirs
relief. that underlie both the OCS and lands
(c) Procedure that BOEM follows to dis- subject to the jurisdiction of the State.
close acquired data and information to a (3) Before a sale, if a Governor re-
contractor for reproduction, processing, quests, the Regional Director, in ac-
and interpretation. (1) When practical, cordance with 30 CFR 552.7(a)(4) and (b)
the Regional Director will advise the and sections 8(g) and 26(e) of the Act
person who submitted data and infor- (43 U.S.C. 1337(g) and 1352(e)), will share
mation under § 551.11 or § 551.12 of the with the Governor information that
intent to disclose the data or informa- identifies potential and/or proven com-
tion to an independent contractor or mon hydrocarbon bearing areas within
agent. 3 geographic miles of the seaward
(2) The person so notified will have at boundary of that State.
least 5 working days to comment on (4) Information received and knowl-
the action. edge gained by a State official under
(3) When the Regional Director ad- paragraph (d) of this section is subject
vises the person who submitted the to applicable confidentiality require-
data and information, all other owners ments of:
of the data or information will be con- (i) The Act; and
sidered to have been so notified. (ii) The regulations at 30 CFR parts
(4) Before disclosure, the contractor 550, 551, and 552.
or agent must sign a written commit-
ment not to sell, trade, license, or dis- § 551.15 Authority for information col-
lection.
close data or information to anyone
without the Regional Director’s con- (a) The Office of Management and
sent. Budget has approved the information
(d) Sharing data and information with collection requirements in this part
coastal States. (1) When BOEM solicits under 44 U.S.C. 3501 et seq. and assigned
nominations for leasing lands located OMB control number 1010–0048. The
within 3 geographic miles (5.6 kilo- title of this information collection is
meters) of the seaward boundary of any ‘‘30 CFR part 551, Geological and Geo-
coastal State, the Regional Director, in physical (G&G) Explorations of the
accordance with 30 CFR 552.7(a)(4) and OCS.’’
(b) and subsections 8(g) and 26(e) of the (b) We may not conduct or sponsor,
Act (43 U.S.C. 1337(g) and 1352(e)), will and you are not required to respond to,
provide the Governor with: a collection of information unless it
(i) All information on the geo- displays a currently valid OMB control
graphical, geological, and ecological number.
characteristics of the areas and regions (c) We use the information collected
BOEM proposes to offer for lease; under this part to:
(ii) An estimate of the oil and gas re- (1) Evaluate permit applications and
serves in the areas proposed for leas- monitor scientific research activities
ing; and for environmental and safety reasons.
428
(2) Determine that explorations do § 552.1 Purpose.

not harm resources, result in pollution, The purpose of this part is to imple-
create hazardous or unsafe conditions, ment the provisions of section 26 of the
or interfere with other users in the Act (43 U.S.C. 1352). This part supple-
area. ments the procedures and requirements
(3) Approve reimbursement of certain contained in 30 CFR parts 250, 251, 550,
expenses. and 551 and provides procedures and re-
(4) Monitor the progress and activi- quirements for the submission of oil
ties carried out under an OCS G&G per- and gas data and information resulting
mit. from exploration, development, and
(5) Inspect and select G&G data and production operations on the Outer
information collected under an OCS Continental Shelf (OCS) to the Direc-
G&G permit. tor, Bureau of Ocean Energy Manage-
(d) Respondents are Federal OCS per- ment. In addition, this part establishes
mittees and Notice filers. Responses procedures for the Director to make
are mandatory or are required to ob- available certain information to the
tain or retain a benefit. We will protect Governors of affected States and, upon
information considered proprietary request, to the executives of affected
under applicable law and under regula- local governments in accordance with
tions at § 551.14 and part 550 of this the provisions of the Freedom of Infor-
chapter. mation Act and the Act.
(e) Send comments regarding any as- § 552.2 Definitions.
pect of the collection of information
under this part, including suggestions When used in the regulations in this
for reducing the burden, to the Infor- part, the following terms shall have
mation Collection Clearance Officer, the meanings given below:
Bureau of Ocean Energy Management, Act refers to the Outer Continental
45600 Woodland Road, Sterling, VA Shelf Lands Act, as amended (43 U.S.C.
20166. 1331 et seq.).
Affected local government means the
[76 FR 64623, Oct. 18, 2011, as amended at 80 principal governing body of a locality
FR 57097, Sept. 22, 2015] which is in an affected State and is
identified by the Governor of that
PART 552—OUTER CONTINENTAL State as a locality which will be sig-
SHELF (OCS) OIL AND GAS IN- nificantly affected by oil and gas ac-
FORMATION PROGRAM tivities on the OCS.
Affected State means, with respect to
any program, plan, lease sale, or other
Sec.
activity, proposed, conducted, or ap-
552.1 Purpose.
proved pursuant to the provisions of
552.2 Definitions.
the Act, any State:
552.3 Oil and gas data and information to be
provided for use in the OCS Oil and Gas
(1) The laws of which are declared,
Information Program. pursuant to section 4(a)(2)(A) of the
552.4 Summary Report to affected States. Act, to be the law of the United States
552.5 Information to be made available to for the portion of the OCS on which
affected States. such activity is, or is proposed to be,
552.6 Freedom of Information Act require- conducted;
ments. (2) Which is, or is proposed to be, di-
552.7 Privileged and proprietary data and rectly connected by transportation fa-
information to be made available to af- cilities to any artificial island or in-
fected States. stallations and other devices perma-
AUTHORITY: OCS Lands Act, 43 U.S.C. 1331 nently, or temporarily attached to the
et seq., as amended, 92 Stat. 629; Freedom of seabed;
Information Act, 5 U.S.C. 552; § 252.3 also (3) Which is receiving, or in accord-
issued under Pub. L. 99–190 making con- ance with the proposed activity will re-
tinuing appropriations for Fiscal Year 1986, ceive, oil for processing, refining, or
and for other purposes. transshipment which was extracted

SOURCE: 76 FR 64623, Oct. 18, 2011, unless from the OCS and transported directly
otherwise noted. to such State by means of vessels or by
429
§ 552.2 30 CFR Ch. V (7–1–18 Edition)
a combination of means including ves- of the U.S. Department of the Interior

sels; or a designee of the Director.
(4) Which is designated by the Direc- Exploration means the process of
tor as a State in which there is a sub- searching for oil and natural gas, in-
stantial probability of significant im- cluding:
pact on or damage to the coastal, ma- (1) Geophysical surveys where mag-
rine, or human environment, or a State netic, gravity, seismic, or other sys-
in which there will be significant tems are used to detect or imply the
changes in the social, governmental, or presence of such oil or natural gas, and
economic infrastructure, resulting (2) Any drilling, whether on or off
from the exploration, development, and known geological structures, including
production of oil and gas anywhere on the drilling of a well in which a dis-
the OCS; or covery of oil or natural gas in paying
(5) In which the Director finds that quantities is made and the drilling of
because of such activity there is, or any additional delineation well after
will be, a significant risk of serious such discovery which is needed to de-
damage, due to factors such as pre- lineate any reservoir and to enable the
vailing winds and currents, to the ma- lessee to determine whether to proceed
rine or coastal environment in the with development and production.
event of any oilspill, blowout, or re- Governor means the Governor of a
lease of oil or gas from vessels, pipe- State, or the person or entity des-
lines, or other transshipment facilities. ignated by, or pursuant to, State law
Analyzed geological information means to exercise the powers granted to a
data collected under a permit or a lease Governor pursuant to the Act.
which have been analyzed. Analysis Information, when used without a
may include, but is not limited to, qualifying adjective, includes analyzed
identification of lithologic and fossil geological information, processed geo-
content, core analyses, laboratory physical information, interpreted geo-
analyses of physical and chemical logical information, and interpreted
properties, logs or charts of electrical, geophysical information.
radioactive, sonic, and other well logs, Interpreted geological information
and descriptions of hydrocarbon shows means knowledge, often in the form of
or hazardous conditions. schematic cross sections and maps, de-
Area adjacent to a State means all of veloped by determining the geological
that portion of the OCS included with- significance of data and analyzed geo-
in a planning area if such planning logical information.
area is bordered by that State. The Interpreted geophysical information
portion of the OCS in the Navarin means knowledge, often in the form of
Basin Planning Area is deemed to be schematic cross sections and maps, de-
adjacent to the State of Alaska. The veloped by determining the geological
States of New York and Rhode Island significance of geophysical data and
are deemed to be adjacent to both the processed geophysical information.
Mid-Atlantic Planning Area and the Lease means any form of authoriza-
North Atlantic Planning Area. tion which is issued under section 8 or
Data means facts and statistics or maintained under section 6 of the Act
samples which have not been analyzed and which authorizes exploration for,
or processed. and development and production of, oil
Development means those activities or natural gas, or the land covered by
which take place following discovery of such authorization, whichever is re-
oil or natural gas in paying quantities, quired by the context.
including geophysical activity, drill- Lessee means the party authorized by
ing, platform construction, and oper- a lease, or an approved assignment
ation of all onshore support facilities, thereof, to explore for and develop and
and which are for the purpose of ulti- produce the leased deposits in accord-
mately producing the oil and gas dis- ance with the regulations in part 550 of
covered. this chapter, including all parties hold-

Director means the Director of the ing such authority by or through the
Bureau of Ocean Energy Management lessee.
430
Outer Continental Shelf (OCS) means for any consequence of the use of or re-
all submerged lands which lie seaward liance upon such interpretation.
and outside of the area of lands be- (b)(1) Whenever a lessee or permittee
neath navigable waters as defined in provides any data or information, at
the Submerged Lands Act (67 Stat. 29) the request of the Director and specifi-
and of which the subsoil and seabed ap- cally for use in the OCS Oil and Gas In-
pertain to the United States and are formation Program in a form and man-
subject to its jurisdiction and control. ner of processing which is utilized by
Permittee means the party authorized the lessee or permittee in the normal
by a permit issued pursuant to part 551 conduct of business, the Director shall
of this chapter to conduct activities on pay the reasonable cost of reproducing
the OCS. the data and information if the lessee
Processed geophysical information or permittee requests reimbursement.
means data collected under a permit or The cost shall be computed and paid in
a lease which have been processed. accordance with the applicable provi-
sions of paragraph (e)(1) of this section.
Processing involves changing the form
(2) Whenever a lessee or permittee
of data so as to facilitate interpreta-
provides any data or information, at
tion. Processing operations may in-
the request of the Director and specifi-
clude, but are not limited to, applying
cally for use in the OCS Oil and Gas In-
corrections for known perturbing
formation Program, in a form and
causes, rearranging or filtering data,
manner of processing not normally uti-
and combining or transforming data
lized by the lessee or permittee in the
elements.
normal conduct of business, the Direc-
Production means those activities tor shall pay the lessee or permittee, if
which take place after the successful the lessee or permittee requests reim-
completion of any means for the re- bursement, the reasonable cost of proc-
moval of oil or natural gas, including essing and reproducing the requested
such removal, field operations, transfer data and information. The cost is to be
of oil or natural gas to shore, operation computed and paid in accordance with
monitoring, maintenance, and the applicable provisions of paragraph
workover drilling. (e)(2) of this section.
Secretary means the Secretary of the (c) Data or information requested by
Interior or a designee of the Secretary. the Director shall be provided as soon
as practicable, but not later than 30
§ 552.3 Oil and gas data and informa- days following receipt of the Director’s
tion to be provided for use in the request, unless, for good reason, the Di-
OCS Oil and Gas Information Pro-
gram. rector authorizes a longer time period
for the submission of the requested
(a) Any permittee or lessee engaging data or information.
in the activities of exploration for, or (d) The Director reserves the right to
development and production of, oil and disclose any data or information ac-
gas on the OCS shall provide the Direc- quired from a lessee or permittee to an
tor access to all data and information independent contractor or agent for
obtained or developed as a result of the purpose of reproducing, processing,
such activities, including geological reprocessing, or interpreting such data
data, geophysical data, analyzed geo- or information. When practicable, the
logical information, processed and re- Director shall notify the lessee(s) or
processed geophysical information, in- permittee(s) who provided the data or
terpreted geophysical information, and information of the intent to disclose
interpreted geological information. the data or information to an inde-
Copies of these data and information pendent contractor or agent. The Di-
and any interpretation of these data rector’s notice of intent will afford the
and information shall be provided to permittee(s) or lessee(s) a period of not
the Director upon request. No per- less than 5 working days within which
mittee or lessee submitting an inter- to comment on the intended action.
pretation of data or information, where When the Director so notifies a lessee

such interpretation has been submitted or permittee of the intent to disclose
in good faith, shall be held responsible data or information to an independent
431
§ 552.4 30 CFR Ch. V (7–1–18 Edition)
contractor or agent, all other owners of ing costs from acquisition and other
such data or information shall be costs.
deemed to have been notified of the Di- (f) Each Federal Department or
rector’s intent. Prior to any such dis- Agency shall provide the Director with
closure, the contractor or agent shall any data which it has obtained pursu-
be required to execute a written com- ant to section 11 of the Act and any
mitment not to disclose any data or in- other information which may be nec-
formation to anyone without the ex- essary or useful to assist the Director
press consent of the Director, and not in carrying out the provisions of the
to make any disclosure or use of the Act.
data or information other than that
provided in the contract. Contracts be- § 552.4 Summary Report to affected
tween BOEM and independent contrac- States.
tors shall be available to the lessee(s) (a) The Director, as soon as prac-
or permittee(s) for inspection. In the ticable after analysis, interpretation,
event of any unauthorized use or dis- and compilation of oil and gas data and
closure of data or information by the information developed by BOEM or fur-
contractor or agent, or by an employee nished by lessees, permittees, or other
thereof, the responsible contractor or government agencies, shall make avail-
agent or employee thereof shall be lia- able to affected States and, upon re-
ble for penalties pursuant to section 24 quest, to the executive of any affected
of the Act.
local government, a Summary Report
(e)(1) After delivery of data or infor-
of data and information designed to as-
mation in accordance with paragraph
sist them in planning for the onshore
(b)(1) of this section and upon receipt
impacts of potential OCS oil and gas
of a request for reimbursement and a
development and production. The Di-
determination by the Director that the
rector shall consult with affected
requested reimbursement is proper, the
States and other interested parties to
lessee or permittee shall be reimbursed
define the nature, scope, content, and
for the cost of reproducing the data or
timing of the Summary Report. The
information at the lessee’s or permit-
Director may consult with affected
tee’s lowest rate or at the lowest com-
mercial rate established in the area, States and other interested parties re-
whichever is less. Requests for reim- garding subsequent revisions in the
bursement must be made within 60 definition of the nature, scope, con-
days of the delivery date of the data or tent, and timing of the Summary Re-
information requested under paragraph port. The Summary Report shall not
(b)(1) of this section. contain data or information which the
(2) After delivery of data or informa- Director determines is exempt from
tion in accordance with paragraph disclosure in accordance with this part.
(b)(3) of this section, and upon receipt The Summary Report shall not contain
of a request for reimbursement and a data or information the release of
determination by the Director that the which the Director determines would
requested reimbursement is proper, the unduly damage the competitive posi-
lessee or permittee shall be reimbursed tion of the lessee or permittee who pro-
for the cost of processing or reprocess- vided the data or information which
ing and of reproducing the requested the Director has processed, analyzed,
data or information. Requests for reim- or interpreted during the development
bursement must be made within 60 of the Summary Report. The Summary
days of the delivery date of the data or Report shall include:
information and shall be for only the (1) Estimates of oil and gas reserves;
costs attributable to processing or re- estimates of the oil and gas resources
processing and reproducing, as distin- that may be found within areas which
guished from the costs of data acquisi- the Secretary has leased or plans to
tion. offer for lease; and when available, pro-
(3) Requests for reimbursement are jected rates and volumes of oil and gas
to contain a breakdown of costs in suf- to be produced from leased areas;

ficient detail to allow separation of re- (2) Magnitude of the approximate
production, processing, and reprocess- projections and timing of development,
432
if and when oil or gas, or both, is dis- ments of the Act, and the regulations
covered; contained in 30 CFR parts 250 and 550
(3) Methods of transportation to be (Oil and Gas and Sulphur Operations in
used, including vessels and pipelines the Outer Continental Shelf) and 30
and approximate location of routes to CFR part 551 (Geological and Geo-
be followed; and physical Explorations of the Outer
(4) General location and nature of Continental Shelf).
near-shore and onshore facilities ex- (b) Except as provided in § 552.7 or in
pected to be utilized. 30 CFR parts 250, 251, 550, and 551 of
(b) When the Director determines this chapter, no data or information
that significant changes have occurred determined by the director to be ex-
in the information contained in a Sum- empt from public disclosure under
mary Report, the Director shall pre- paragraph (a) of this section shall be
pare and make available the new or re- provided to any affected State or be
vised information to each affected made available to the executive of any
State, and, upon request, to the execu- affected local government or to the
tive of any affected local government. public unless the lessee, or the per-
mittee and all persons to whom such
§ 552.5 Information to be made avail- permittee has sold such data or infor-
able to affected States. mation under promise of confiden-
(a) The Director shall prepare an tiality, agree to such action.
index of OCS information (see 30 CFR
556.10). The index shall list all relevant § 552.7 Privileged and proprietary
actual or proposed programs, plans, re- data and information to be made
ports, environmental impact state- available to affected States.
ments, nominations information, envi- (a)(1) The Governor of any affected
ronmental study reports, lease sale in- State may designate an appropriate
formation, and any similar type of rel- State official to inspect, at a regional
evant information, including modifica- location which the Director shall des-
tions, comments, and revisions pre- ignate, any privileged or proprietary
pared or directly obtained by the Di- data or information received by the Di-
rector under the Act. The index shall rector regarding any activity in an
be sent to affected States and, upon re- area adjacent to such State, except
quest, to any affected local govern- that no such inspection shall take
ment. The public shall be informed of place prior to the sale of a lease cov-
the availability of the index. ering the area in which such activity
(b) Upon request, the Director shall was conducted.
transmit to affected States, affected (2)(i) Except as provided for in 30 CFR
local governments, and the public a 250.197, 550.197, and 551.14, no privileged
copy of any information listed in the or proprietary data or information will
index which is subject to the control of be transmitted to any affected State
BOEM, in accordance with the require- unless the lessee who provided the priv-
ments and subject to the limitations of ileged or proprietary data or informa-
the Freedom of Information Act (5 tion agrees in writing to the trans-
U.S.C. 552) and implementing regula- mittal of the data or information.
tions. The Director shall not transmit (ii) Except as provided for in 30 CFR
or make available any information 250.197, 550.197, and 551.14, no privileged
which he determines is exempt from or proprietary data or information will
disclosure in accordance with this part. be transmitted to any affected State
unless the permittee and all persons to
§ 552.6 Freedom of Information Act re- whom the permittee has sold the data
quirements. or information under promise of con-
(a) The Director shall make data and fidentiality agree in writing to the
information available in accordance transmittal of the data or information.
with the requirements and subject to (3) Knowledge obtained by a State of-
the limitations of the Freedom of In- ficial who inspects data or information
formation Act (5 U.S.C. 552), the regu- under paragraph (a)(1) of this section
lations contained in 43 CFR part 2 or who receives data or information
(Records and Testimony), the require- under paragraph (a)(2) of this section
433
shall be subject to the requirements employee who is found guilty of failure

and limitations of the Freedom of In- to comply with any of the require-
formation Act (5 U.S.C. 552), the regu- ments of this section shall be subject
lations contained in 43 CFR part 2 to the penalties described in section 24
(Records and Testimony), the Act (92 of the Act (43 U.S.C. 1350).
Stat. 629), the regulations contained in (2) In any action commenced against
30 CFR parts 250 and 550 (Oil and Gas the Federal Government or a State
and Sulphur Operations in the Outer pursuant to paragraph (b)(1) of this sec-
Continental Shelf), the regulations tion, the Federal Government or such
contained in 30 CFR parts 251 and 551 State, as the case may be, may not
(Geological and Geophysical Explo-
raise as a defense any claim of sov-
rations of the Outer Continental Shelf),
ereign immunity, or any claim that the
and the regulations contained in 30
CFR parts 252 and 552 (Outer Conti- employee who revealed the privileged
nental Shelf Oil and Gas Information or proprietary data or information
Program). which is the basis of such suit was act-
(4) Prior to the transmittal of any ing outside the scope of the person’s
privileged or proprietary data or infor- employment in revealing such data or
mation to any State, or the grant of information.
access to a State official to such data (c) If the Director finds that any
or information, the Secretary shall State cannot or does not comply with
enter into a written agreement with the conditions described in the agree-
the Governor of the State in accord- ment entered into pursuant to para-
ance with section 26(e) of the Act (43 graph (a)(4) of this section, the Direc-
U.S.C. 1352). In that agreement the tor shall thereafter withhold trans-
State shall agree, as a condition prece- mittal and deny access for inspection
dent to receiving or being granted ac- of privileged or proprietary data or in-
cess to such data or information to: formation to such State until the Di-
(i) Protect and maintain the con- rector finds that such State can and
fidentiality of privileged or proprietary will comply with those conditions.
data and information in accordance
with the laws and regulations listed in
paragraph (a)(3) of this section; PART 553—OIL SPILL FINANCIAL
(ii) Waive the defenses as set forth in RESPONSIBILITY FOR OFFSHORE
paragraph (b)(2) of this section; and FACILITIES
(iii) Hold the United States harmless
from any violations of the agreement Subpart A—General
to protect the confidentiality of privi-
leged or proprietary data or informa- Sec.
tion by the State or its employees or 553.1 What is the purpose of this part?
contractors. 553.3 How are the terms used in this regula-
tion defined?
(b)(1) Whenever any employee of the
553.5 What is the authority for collecting
Federal Government or of any State re-
Oil Spill Financial Responsibility
veals in violation of the Act or of the (OSFR) information?
provisions of the regulations imple-
menting the Act, privileged or propri- Subpart B—Applicability and Amount of
etary data or information obtained OSFR
pursuant to the regulations in this
chapter, the lessee or permittee who 553.10 What facilities does this part cover?
supplied such information to the Direc- 553.11 Who must demonstrate OSFR?
tor or any other Federal official, and 553.12 May I ask BOEM for a determination
any person to whom such lessee or per- of whether I must demonstrate OSFR?
mittee has sold such data or informa- 553.13 How much OSFR must I dem-
tion under the promise of confiden- onstrate?
tiality, may commence a civil action 553.14 How do I determine the worst case
for damages in the appropriate district oil-spill discharge volume?
court of the United States against the 553.15 What are my general OSFR compli-
ance responsibilities?
Federal Government or such State, as
the case may be. Any Federal or State
434
Subpart C—Methods for Demonstrating 553.62 What are the designated applicant’s
OSFR notification obligations regarding a
claim?
553.20 What methods may I use to dem-
onstrate OSFR? Subpart G—Limit of Liability for Offshore
553.21 How can I use self-insurance as OSFR Facilities
evidence?
553.22 How do I apply to use self-insurance 553.700 What is the scope of this subpart?
as OSFR evidence? 553.701 To which entities does this subpart
apply?
553.23 What information must I submit to
553.702 What limit of liability applies to my
support my net worth demonstration?
offshore facility?
553.24 When I submit audited annual finan- 553.703 What is the procedure for calcu-
cial statements to verify my net worth, lating the limit of liability adjustment
what standards must they meet? for inflation?
553.25 What financial test procedures must I 553.704 How will BOEM publish the offshore
use to determine the amount of self-in- facility limit of liability adjustment?
surance allowed as OSFR evidence based
on net worth? APPENDIX TO PART 553—LIST OF U.S. GEO-
LOGICAL SURVEY TOPOGRAPHIC MAPS
553.26 What information must I submit to
support my unencumbered assets dem- AUTHORITY: 33 U.S.C. 2704, 2716; E.O. 12777,
onstration? as amended.
553.27 When I submit audited annual finan- SOURCE: 76 FR 64623, Oct. 18, 2011, unless
cial statements to verify my otherwise noted.
unencumbered assets, what standards
must they meet?
553.28 What financial test procedures must I Subpart A—General
use to evaluate the amount of self-insur-
ance allowed as OSFR evidence based on § 553.1 What is the purpose of this
unencumbered assets? part?
553.29 How can I use insurance as OSFR evi- This part establishes the require-
dence? ments for demonstrating Oil Spill Fi-
553.30 How can I use an indemnity as OSFR nancial Responsibility for covered off-
evidence?
shore facilities (COF), sets forth the
553.31 How can I use a surety bond as OSFR
evidence? procedures for claims against COF
553.32 Are there alternative methods to guarantors, and sets forth the limit of
demonstrate OSFR? liability for offshore facilities, as ad-
justed, un der Title I of the Oil Pollu-
Subpart D—Requirements for Submitting tion Act of 1990, as amended, 33 U.S.C.
OSFR Information 2701 et seq. (OPA).
553.40 What OSFR evidence must I submit [79 FR 73839, Dec. 12, 2014]
to BOEM?
553.41 What terms must I include in my § 553.3 How are the terms used in this
OSFR evidence? regulation defined?
553.42 How can I amend my list of COFs? Terms used in this part have the fol-
553.43 When is my OSFR demonstration or lowing meaning:
the amendment to my OSFR demonstra- Advertise means publication of the
tion effective? notice of designation of the source of
553.44 [Reserved]
the incident and the procedures by
553.45 Where do I send my OSFR evidence?
which the claims may be presented, ac-
Subpart E—Revocation and Penalties cording to 33 CFR part 136, subpart D.
Annual CPI–U means the annual
553.50 How can BOEM refuse or invalidate ‘‘Consumer Price Index-All Urban Con-
my OSFR evidence? sumers, Not Seasonally Adjusted, U.S.
553.51 What are the penalties for not com- City Average, All items, 1982 ¥ 84 =
plying with this part? 100,’’ published by the U.S. Department
of Labor, Bureau of Labor Statistics.
Subpart F—Claims for Oil-Spill Removal
Bay means a body of water included
Costs and Damages
in the Geographic Names Information
553.60 To whom may I present a claim? System (GNIS) bay feature class. A
553.61 When is a guarantor subject to direct GNIS bay includes an arm, bay, bight,
action for claims? cove, estuary, gulf, inlet, or sound.
435
§ 553.3 30 CFR Ch. V (7–1–18 Edition)
Claim means a written request, for a Designated applicant means a person

specific sum, for compensation for the responsible parties designate to
damages or removal costs resulting demonstrate OSFR for a COF on a
from an oil-spill discharge or a sublease, permit, or right-of-use and ease-
stantial threat of the discharge of oil. ment.
Claimant means any person or gov- Director means the Director of the
ernment who presents a claim for com- Bureau of Ocean Energy Management.
pensation under OPA. Fund means the Oil Spill Liability
Coastline means the line of ordinary Trust Fund established by section 9509
low water along that portion of the of the Internal Revenue Code of 1986 as
coast that is in direct contact with the amended (26 U.S.C. 9509).
open sea which marks the seaward Geographic Names Information System
limit of inland waters. (GNIS) means the database developed
Covered offshore facility (COF) means by the USGS in cooperation with the
a facility: U.S. Board of Geographic Names which
(1) That includes any structure and contains the federally-recognized geo-
all its components (including wells graphic names for all known places,
completed at the structure and the as- features, and areas in the United
sociated pipelines), equipment, pipe- States that are identified by a proper
line, or device (other than a vessel or name. Each feature is located by state,
other than a pipeline or deepwater port county, and geographic coordinates
licensed under the Deepwater Port Act and is referenced to the appropriate
of 1974 (33 U.S.C. 1501 et seq.)) used for 1:24,000-scale or 1:63,360-scale USGS
exploring for, drilling for, or producing topographic map on which it is shown.
oil or for transporting oil from such fa- Guarantor means a person other than
cilities. This includes a well drilled a responsible party who provides OSFR
from a mobile offshore drilling unit evidence for a designated applicant.
(MODU) and the associated riser and Guaranty means any acceptable form
well control equipment from the mo- of OSFR evidence provided by a guar-
ment a drill shaft or other device first antor including an indemnity, insur-
touches the seabed for purposes of ex- ance, or surety bond.
ploring for, drilling for, or producing Incident means any occurrence or se-
oil, but it does not include the MODU; ries of occurrences having the same or-
and igin that results in the discharge or
(2) That is located: substantial threat of the discharge of
(i) Seaward of the coastline; or oil.
(ii) In any portion of a bay that is: Indemnity means an agreement to in-
(A) Connected to the sea, either di- demnify a designated applicant upon
rectly or through one or more other its satisfaction of a claim.
bays; and Indemnitor means a person providing
(B) Depicted in whole or in part on an indemnity for a designated appli-
any USGS map listed in the Appendix cant.
to this part, or on any map published Independent accountant means a cer-
by the USGS that is a successor to and tified public accountant who is cer-
covers all or part of the same area as a tified by a state, or a chartered ac-
listed map. Where any portion of a bay countant certified by the government
is included on a listed map, this rule of jurisdiction within the country of
applies to the entire bay; and incorporation of the company pro-
(3) That has a worst case oil-spill dis- posing to use one of the self-insurance
charge potential of more than 1,000 bbls evidence methods specified in this sub-
of oil, or a lesser volume if the Director part.
determines in writing that the oil-spill Insolvent has the meaning set forth in
discharge risk justifies the require- 11 U.S.C. 101, and generally refers to a
ment to demonstrate OSFR. financial condition in which the sum of
Current period means the year in a person’s debts is greater than the
which the Annual CPI–U was most re- value of the person’s assets.
cently published by the U.S. Depart- Lease means any form of authoriza-
ment of Labor, Bureau of Labor Statis- tion issued under the Outer Conti-
tics. nental Shelf Lands Act or state law
436
which allows oil and gas exploration the transportation of oil or natural
and production in the area covered by gas.
the authorization. Previous period means the year in
Lessee means a person holding a which the previous limit of liability
leasehold interest in an oil or gas lease was established, or last adjusted by
including an owner of record title or a statute or regulation, whichever is
holder of operating rights (working in- later.
terest owner). Responsible party, for purposes of sub-
Oil means oil of any kind or in any parts B through F, has the following
form, except as excluded by paragraph meanings:
(2) of this definition. (1) For a COF that is a pipeline, re-
(1) Oil includes: sponsible party means any person own-
(i) Petroleum, fuel oil, sludge, oil ing or operating the pipeline;
refuse, and oil mixed with wastes other (2) For a COF that is not a pipeline,
than dredged spoil; responsible party means either the les-
see or permittee of the area in which
(ii) Hydrocarbons produced at the
the COF is located, or the holder of a
wellhead in liquid form;
right-of-use and easement granted
(iii) Gas condensate that has been
under applicable State law or the
separated from gas before pipeline in-
OCSLA (43 U.S.C. 1301–1356) for the area
jection.
in which the COF is located (if the
(2) Oil does not include petroleum, in- holder is a different person than the
cluding crude oil or any fraction there- lessee or permittee). A Federal agency,
of, which is specifically listed or des- State, municipality, commission, or
ignated as a hazardous substance under political subdivision of a State, or any
subparagraphs (A) through (F) of sec- interstate body that as owner transfers
tion 101(14) of the Comprehensive Envi- possession and right to use the prop-
ronmental Response, Compensation, erty to another person by lease, assign-
and Liability Act (CERCLA) (42 U.S.C. ment, or permit is not a responsible
9601). party; and
Oil Spill Financial Responsibility (3) For an abandoned COF, respon-
(OSFR) means the capability and sible party means any person who
means by which a responsible party for would have been a responsible party for
a covered offshore facility will meet re- the COF immediately before abandon-
moval costs and damages for which it ment.
is liable under Title I of the Oil Pollu- Responsible party, for purposes of sub-
tion Act of 1990, as amended (33 CFR part G, has the meaning in 33 U.S.C.
2701 et seq.), with respect to both oil- 2701(32)(C), (E) and (F). This definition
spill discharges and substantial threats includes, as applicable, lessees as de-
of the discharge of oil. fined in this subpart, permittees, right-
Outer Continental Shelf (OCS) has the of-use and easement holders, and pipe-
same meaning as the term ‘‘Outer Con- line owners and operators.
tinental Shelf’’ defined in section 2(a) Right-of-use and easement (RUE)
of the OCS Lands Act (OCSLA) (43 means any authorization to use the
U.S.C. 1331(a)). OCS or submerged land for purposes
Permit means an authorization, li- other than those authorized by a lease
cense, or permit for geological explo- or permit, as defined herein. It includes
ration issued under section 11 of the pipeline rights-of-way.
OCSLA (43 U.S.C. 1340) or applicable Source of the incident means the facil-
state law. ity from which oil was discharged or
Person means an individual, corpora- which poses a substantial threat of dis-
tion, partnership, association (includ- charging oil, as designated by the Di-
ing a trust or limited liability com- rector, National Pollution Funds Cen-
pany), state, municipality, commission ter, according to 33 CFR part 136, sub-
or political subdivision of a state, or part D.
any interstate body. State means the several States of the
Pipeline means the pipeline segments United States, the District of Colum-
and any associated equipment or ap- bia, the Commonwealth of Puerto Rico,
purtenances used or intended for use in Guam, American Samoa, the United
437
§ 553.5 30 CFR Ch. V (7–1–18 Edition)
States Virgin Islands, the Common- Subpart B—Applicability and

wealth of the Northern Marianas, and Amount of OSFR
any other territory or possession of the
United States. § 553.10 What facilities does this part
cover?
FR 73839, Dec. 12, 2014] (a) This part applies to any COF on
any lease or permit issued or on any
§ 553.5 What is the authority for col- RUE granted under the OCSLA or ap-
lecting Oil Spill Financial Responsi- plicable State law.
bility (OSFR) information? (b) For a pipeline COF that extends
onto land, this part applies to that por-
(a) The Office of Management and tion of the pipeline lying seaward of
Budget (OMB) has approved the infor- the first accessible flow shut-off device
mation collection requirements in this on land.
part 553 under 44 U.S.C. 3501 et seq., and
assigned OMB control number 1010– § 553.11 Who must demonstrate OSFR?
0106. (a) A designated applicant must dem-
(b) BOEM collects the information to onstrate OSFR. A designated applicant
ensure that the designated applicant may be a responsible party or another
for a COF has the financial resources person authorized under this section.
necessary to pay for cleanup and dam- Each COF must have a single des-
ages that could be caused by oil dis- ignated applicant.
charges from the COF. BOEM uses the (1) If there is more than one respon-
information to ensure compliance of sible party, those responsible parties
offshore lessees, owners, and operators must use Form BOEM–1017 to select a
of covered facilities with OPA; to es- designated applicant. The designated
tablish eligibility of designated appli- applicant must submit Form BOEM–
cants for OSFR certification (OSFRC); 1016 and agree to demonstrate OSFR on
and to establish a reference source of behalf of all the responsible parties.
(2) If you are a designated applicant
names, addresses, and telephone num-
who is not a responsible party, you
bers of responsible parties for covered
must agree to be liable for claims made
facilities and their designated agents, under OPA jointly and severally with
guarantors, and U.S. agents for service the responsible parties.
of process for claims associated with (b) The designated applicant for a
oil pollution from designated covered COF on a lease must be either:
facilities. The requirement to provide (1) A lessee; or
the information is mandatory. No in- (2) The designated operator for the
formation submitted for OSFRC is con- OCS lease under 30 CFR 550.143 or the
fidential or proprietary. unit operator designated under a Fed-
(c) An agency may not conduct or erally approved unit including the OCS
sponsor, and a person is not required to lease. For a lease or unit not in the
respond to, a collection of information OCS, the operator designated under the
unless it displays a currently valid lease or unit operating agreement for
OMB control number. the lease may be the designated appli-
(d) Send comments regarding any as- cant only if the operator has agreed to
pect of the collection of information be responsible for compliance with all
under this part, including suggestions the laws and regulations applicable to
for reducing the burden, to the Infor- the lease or unit.
(c) The designated applicant for a
mation Collection Clearance Officer,
COF on a permit must be the per-
Bureau of Ocean Energy Management,
mittee.
45600 Woodland Road, Sterling, VA (d) The designated applicant for a
20166. COF on a RUE must be the holder of
[76 FR 64623, Oct. 18, 2011, as amended at 80 the RUE or, if there is a pipeline on the
RUE, the owner or operator of the pipe-
FR 57097, Sept. 22, 2015]

line.
(e) BOEM may require the designated
applicant for a lease, permit, or RUE to
438
be a person other than a person identi- bility. Address the request to the office
fied in paragraphs (b) through (d) of identified in § 553.45. You must include
this section if BOEM determines that a in your request any information that
person identified in paragraphs (b) will assist BOEM in making the deter-
through (d) cannot adequately dem- mination. BOEM may require you to
onstrate OSFR. submit other information before mak-
(f) If you are a responsible party and ing a determination of OSFR applica-
you fail to designate an applicant, then bility.
you must demonstrate OSFR under the
requirements of this part. § 553.13 How much OSFR must I dem-
onstrate?
§ 553.12 May I ask BOEM for a deter-
mination of whether I must dem- (a) The following general parameters
onstrate OSFR? apply to the amount of OSFR that you
You may submit to BOEM a request must demonstrate:
for a determination of OSFR applica-
If you are the designated applicant for . . . Then you must demonstrate . . .
Only one COF, The amount of OSFR that applies to the COF.
More than one COF, The highest amount of OSFR that applies to any one of the
COFs.
(b) You must demonstrate OSFR in onstrate OSFR in accordance with the
the amounts specified in this section: following table:
(1) For a COF located wholly or par-
tially in the OCS you must dem-
Applicable
COF worst case oil-spill discharge volume amount of
OSFR
Over 1,000 bbls but not more than 35,000 bbls ....................................................................................................... $35,000,000
Over 35,000 but not more than 70,000 bbls ............................................................................................................. 70,000,000
Over 70,000 but not more than 105,000 bbls ........................................................................................................... 105,000,000
Over 105,000 bbls ..................................................................................................................................................... 150,000,000
(2) For a COF not located in the OCS

you must demonstrate OSFR in accord-
ance with the following table:
Applicable
COF worst case oil-spill discharge volume amount of
OSFR
Over 1,000 bbls but not more than 10,000 bbls ....................................................................................................... $10,000,000
Over 70,000 but not more than 105,000 bbls ........................................................................................................... 105,000,000
Over 105,000 bbls ..................................................................................................................................................... 150,000,000
(3) The Director may determine that this section for your COF. The Director
you must demonstrate an amount of will not require an OSFR demonstra-
OSFR greater than the amount in tion that exceeds $150 million.
paragraphs (b)(1) and (2) of this section (4) You must demonstrate OSFR in
based on the relative operational, envi- the lowest amount specified in the ap-
ronmental, human health, and other plicable table in paragraph (b)(1) or (2)
risks that your COF poses. The Direc- of this section for a facility with a po-
tor may require an amount that is one tential worst case oil-spill discharge of
or more levels higher than the amount 1,000 bbls or less if the Director notifies
indicated in paragraph (b)(1) or (2) of you in writing that the demonstration
439
§ 553.14 30 CFR Ch. V (7–1–18 Edition)
is justified by the risks of the potential your bonding company has lost its
oil-spill discharge. state license or has had its U.S. Treas-
ury Department certification revoked,
§ 553.14 How do I determine the worst then you must replace the surety bond
case oil-spill discharge volume? within 15 calendar days using a method
(a) To calculate the amount of OSFR of OSFR that is acceptable to BOEM.
you must demonstrate for a facility (e) You must notify BOEM in writing
under § 553.13(b), you must use the within 15 calendar days after a change
worst case oil-spill discharge volume occurs that would prevent you from
that you determined under whichever meeting your OSFR obligations (e.g., if
of the following regulations applies: you or your indemnitor petition for
(1) 30 CFR part 254—Response Plans bankruptcy under chapters 7 or 11 of
for Facilities Located Seaward of the Title 11, U.S.C.). You must take any
Coast Line, except that the volume of action BOEM directs to ensure an ac-
the worst case oil-spill discharge for a ceptable OSFR demonstration.
well must be four times the uncon- (f) If you deny payment of a claim
trolled flow volume that you estimate presented to you under § 553.60, then
for the first 24 hours. you must give the claimant a written
(2) 40 CFR part 112—Oil Pollution explanation for your denial.
Prevention; or
(3) 49 CFR part 194—Response Plans Subpart C—Methods for
for Onshore Oil Pipelines. Demonstrating OSFR
(b) If you are a designated applicant
and you choose to demonstrate $150 § 553.20 What methods may I use to
million in OSFR, you are not required demonstrate OSFR?
to determine any worst case oil-spill As the designated applicant, you may
discharge volumes, since that is the satisfy your OSFR requirements by
maximum amount of OSFR required using one or a combination of the fol-
under this part. lowing methods to demonstrate OSFR:
(a) Self-insurance under §§ 553.21
§ 553.15 What are my general OSFR through 553.28;
compliance responsibilities?
(b) Insurance under § 553.29;
(a) You must maintain continuous (c) An indemnity under § 553.30;
OSFR coverage for all your leases, per- (d) A surety bond under § 553.31; or
mits, and RUEs with COFs for which (e) An alternative method the Direc-
you are the designated applicant. tor approves under § 553.32.
(b) You must ensure that new OSFR
evidence is submitted before your cur- § 553.21 How can I use self-insurance
rent evidence lapses or is canceled and as OSFR evidence?
that coverage for your new COF is sub- (a) If you use self-insurance to satisfy
mitted before the COF goes into oper- all or part of your obligation to dem-
ation. onstrate OSFR, you must annually
(c) If you use self-insurance to dem- pass either a net worth test under
onstrate OSFR and find that you no § 553.25 or an unencumbered net asset
longer qualify to self-insure the retest under § 553.28.
quired OSFR amount based upon your (b) To establish the amount of self-
latest audited annual financial state- insurance allowed, you must submit
ments, then you must demonstrate evidence of your net worth under
OSFR using other methods acceptable § 553.23 or evidence of your
to BOEM by whichever of the following unencumbered assets under § 553.26.
dates comes first: (c) You must identify a U.S. agent for
(1) Sixty calendar days after you re- service of process.
ceive your latest audited annual finan-
cial statement; or § 553.22 How do I apply to use self-in-
(2) The first calendar day of the 5th surance as OSFR evidence?
month after the close of your fiscal (a) You must submit a complete
year. Form BOEM–1018 with each application

(d) You may use a surety bond to to demonstrate OSFR using self-insur-
demonstrate OSFR. If you find that ance.
440
(b) You must submit your application auditing standards that BOEM deter-
to renew OSFR using self-insurance by mines to be equivalent.
the first calendar day of the 5th month (c) The financial information you
after the close of your fiscal year. You submit must be expressed in U.S. dol-
may submit to BOEM your initial ap- lars. If this information was originally
plication to demonstrate OSFR using reported in another form of currency,
self-insurance at any time. you must convert it to U.S. dollars
using the conversion factor that was
§ 553.23 What information must I sub- effective on the last day of the fiscal
mit to support my net worth dem- year pertinent to your financial state-
onstration? ments. You also must identify the
You must support your net worth source of the currency exchange rate.
evaluation with information contained
in your previous fiscal year’s audited § 553.25 What financial test procedures
annual financial statement. must I use to determine the amount
(a) Audited annual financial state- of self-insurance allowed as OSFR
ments must be in the form of: evidence based on net worth?
(1) An annual report, prepared in ac- (a) Divide the total amount of the
cordance with the generally accepted stockholders’/owners’ equity listed on
accounting practices (GAAP) of the the balance sheet by ten.
United States or other international (b) Divide the net amount of the
accounting practices determined to be identifiable U.S. assets by the net
equivalent by BOEM; or amount of the identifiable total assets.
(2) A Form 10–K or Form 20–F, pre- (c) Multiply the net amount of plant,
pared in accordance with Securities property, and equipment shown on the
and Exchange Commission regulations. balance sheet by the number calculated
(b) Audited annual financial state- under paragraph (b) of this section and
ments must be submitted together divide the resultant product by ten.
with a letter signed by your treasurer (d) The smaller of the numbers cal-
highlighting: culated under paragraphs (a) or (c) of
(1) The State or the country of incor- this section is the maximum allowable
poration; amount you may use to demonstrate
(2) The total amount of the stock- OSFR under this method.
holders’ equity as shown on the bal-
ance sheet; § 553.26 What information must I sub-
(3) The net amount of the plant, mit to support my unencumbered
assets demonstration?
property, and equipment shown on the
balance sheet; and You must support your
(4) The net amount of the identifiable unencumbered assets evaluation with
U.S. assets and the identifiable total the information required by § 553.23(a)
assets in the auditor’s notes to the fi- and a list of reserved, unencumbered,
nancial statement (i.e., a geographic and unimpaired U.S. assets whose
segmented business note). value will not be affected by an oil dis-
charge from a COF. The assets must be
§ 553.24 When I submit audited annual plant, property, or equipment held for
financial statements to verify my use. You must submit a letter signed
net worth, what standards must by your treasurer:
they meet? (a) Identifying which assets are re-
(a) Your audited annual financial served;
statements must be bound. (b) Certifying that the assets are
(b) Your audited annual financial unencumbered, including contingent
statements must include the unquali- encumbrances;
fied opinion of an independent account- (c) Promising that the identified as-
ant that states: sets will not be sold, subjected to a se-
(1) The financial statements are free curity interest, or otherwise encum-
from material misstatement, and bered throughout the specified fiscal
(2) The audit was conducted in ac- year; and
cordance with the generally accepted (d) Specifying:

auditing standards (GAAS) of the (1) The State or the country of incor-
United States, or other international poration;
441
§ 553.27 30 CFR Ch. V (7–1–18 Edition)
(2) The total amount of the stock- for claims paying ability in their latest
holders’/owners’ equity listed on the review by A.M. Best’s Insurance Re-
balance sheet; ports, Standard & Poor’s Insurance
(3) The identification and location of Rating Services, or other equivalent
the reserved U.S. assets; and rating made by a rating service accept-
(4) The value of the reserved U.S. as- able to BOEM.
sets less accumulated depreciation and (b) You must submit information
amortization, using the same valuation about your insurers to BOEM on a
method used in your audited annual fi- completed and unaltered Form BOEM–
nancial statement and expressed in 1019. The information you submit
U.S. dollars. The net value of the re- must:
served assets must be at least two (1) Include all the information re-
times the self-insurance amount required by § 553.41 and
quested for demonstration.
(2) Be executed on one original insur-
§ 553.27 When I submit audited annual ance certificate (i.e., Form BOEM–1019)
financial statements to verify my for each OSFR layer (see paragraph (c)
unencumbered assets, what stand- of this section), showing all partici-
ards must they meet? pating insurers and their proportion
Any audited annual financial state- (quota share) of this risk. The certifi-
ments that you submit must: cate must bear the original signatures
(a) Meet the standards in § 553.24; and of each insurer’s underwriter or of
(b) Include a certification by the their lead underwriters, underwriting
independent accountant who audited managers, or delegated brokers, de-
the financial statements that states: pending on who is authorized to bind
(1) The value of the unencumbered the underwriter.
assets is reasonable and uses the same (3) For each insurance company on
valuation method used in your audited the insurance certificate, indicate the
annual financial statements; insurer’s claims-paying-ability rating
(2) Any existing encumbrances are and the rating service that issued the
noted; rating.
(3) The assets are long-term assets (c) The insurance evidence you pro-
held for use; and vide to BOEM as OSFR evidence may
(4) The valuation method used in the be divided into layers, subject to the
audited annual financial statements is following restrictions:
for long-term assets held for use. (1) The total amount of OSFR evi-
dence must equal the total amount you
§ 553.28 What financial test procedures must demonstrate under § 553.13;
must I use to evaluate the amount
of self-insurance allowed as OSFR (2) No more than one insurance cer-
evidence based on unencumbered tificate may be used to cover each
assets? OSFR layer specified in § 553.13(b) (i.e.,
(a) Divide the total amount of the four layers for an OCS COF, and five
stockholders’/owners’ equity listed on layers for a non-OCS COF);
the balance sheet by 4. (3) You may use one insurance cer-
(b) Divide the value of the tificate to cover any number of con-
unencumbered U.S. assets by 2. secutive OSFR layers;
(c) The smaller number calculated (4) Each insurer’s participation in the
under paragraphs (a) or (b) of this sec- covered insurance risk must be on a
tion is the maximum allowable amount proportional (quota share) basis, must
you may use to demonstrate OSFR be expressed as a percentage of a whole
under this method. layer, and the certificate must not con-
tain intermediate, horizontal layers;
§ 553.29 How can I use insurance as (5) You may use an insurance deduct-
OSFR evidence? ible. If you use more than one insur-
(a) If you use insurance to satisfy all ance certificate, the deductible amount
or part of your obligation to dem- must apply only to the certificate that
onstrate OSFR, you may use only in- covers the base OSFR amount layer.
surance certificates issued by insurers To satisfy an insurance deductible, you
that have achieved a ‘‘Secure’’ rating may use only those methods that are
442
acceptable as evidence of OSFR under (3) Provide the surety bond on Form
this part; and BOEM–1020; and
(6) You must identify a U.S. agent for (4) Be in compliance with applicable
service of process on each insurance statutes regulating surety company
certificate you submit to BOEM. The participation in insurance-type risks.
agent may be different for each insur- (b) A surety bond that you submit as
ance certificate. OSFR evidence must include all the in-
(d) You may submit to BOEM a tem- formation required by § 553.41.
porary insurance confirmation (fax
binder) for each insurance certificate § 553.32 Are there alternative methods
to demonstrate OSFR?
you use as OSFR evidence. Submit
your fax binder on Form BOEM–1019, The Director may accept other meth-
and each form must include the signa- ods to demonstrate OSFR that provide
ture of an underwriter for at least one equivalent assurance of timely satis-
of the participating insurers. BOEM faction of claims. This may include
will accept your fax binder as OSFR pooling, letters of credit, pledges of
evidence during a period that ends 90 treasury notes, or other comparable
days after the date that you need the methods. Submit your proposal, to-
insurance to demonstrate OSFR. gether with all the supporting docu-
ments, to the Director at the address
§ 553.30 How can I use an indemnity as listed in § 553.45. The Director’s deci-
OSFR evidence? sion whether to approve your alter-
(a) You may use only one indemnity native method to evidence OSFR is by
issued by only one indemnitor to sat- this rule committed to the Director’s
isfy all or part of your obligation to sole discretion and is not subject to ad-
demonstrate OSFR. ministrative appeal under 30 CFR part
(b) Your indemnitor must be your 590 or 43 CFR part 4.
corporate parent or affiliate.
(c) Your indemnitor must complete a Subpart D—Requirements for
Form BOEM–1018 and provide an in- Submitting OSFR Information
demnity that:
(1) Includes all the information re- § 553.40 What OSFR evidence must I
quired by § 553.41; and submit to BOEM?
(2) Does not exceed the amounts cal- (a) You must submit to BOEM:
culated using the net worth or (1) A single demonstration of OSFR
unencumbered assets tests specified that covers all the COFs for which you
under §§ 553.21 through 553.28. are the designated applicant;
(d) You must submit your application (2) A completed and unaltered Form
to renew OSFR using an indemnity by BOEM–1016;
the first calendar day of the 5th month (3) BOEM forms that identify your
after the close of your indemnitor’s fis- COFs (Form BOEM–1021, Form BOEM–
cal year. You may submit to BOEM 1022), and the methods you will use to
your initial application to demonstrate demonstrate OSFR (Form BOEM–1018,
OSFR using an indemnity at any time. Form BOEM–1019, Form BOEM–1020).
(e) Your indemnitor must identify a Forms are available from the address
U.S. agent for service of process. listed in § 553.45;
(4) Any insurance certificates, indem-
§ 553.31 How can I use a surety bond nities, and surety bonds used as OSFR
as OSFR evidence? evidence for the COFs for which you
(a) Each bonding company that are the designated applicant;
issues a surety bond that you submit to (5) A completed Form BOEM–1017 for
BOEM as OSFR evidence must: each responsible party, unless you are
(1) Be licensed to do business in the the only responsible party for the COFs
State in which the surety bond is exe- covered by your OSFR demonstration;
cuted; and
(2) Be certified by the U.S. Treasury (6) Other financial instruments and
Department as an acceptable surety for information the Director requires to

Federal obligations and listed in the support your OSFR demonstration
current Treasury Circular No. 570; under § 553.32.
443
§ 553.41 30 CFR Ch. V (7–1–18 Edition)
(b) Each BOEM form you submit to you submit as part of your OSFR dem-
BOEM as part of your OSFR demonstration. If you attempt to do this,
onstration must be signed. You also BOEM will disregard the changes,
must attach to Form BOEM–1016 proof omissions, additions, limitations, or
of your authority to sign. exceptions and by operation of this
rule BOEM will consider the form to
§ 553.41 What terms must I include in contain all the terms and conditions
my OSFR evidence?
included on the original BOEM form.
(a) Each instrument you submit as
OSFR evidence must specify: § 553.42 How can I amend my list of
(1) The effective date, and except for COFs?
a surety bond, the expiration date; (a) If you want to add a COF that is
(2) That termination of the instru-
not identified in your current OSFR
ment will not affect the liability of the
demonstration, you must submit to
instrument issuer for claims arising
BOEM a completed Form BOEM–1022. If
from an incident (i.e., oil-spill dis-
charge or substantial threat of the dis- applicable, you also must submit any
charge of oil) that occurred on or be- additional indemnities, surety bonds,
fore the effective date of termination; insurance certificates, or other instru-
(3) That the instrument will remain ments required to extend the coverage
in force until the termination date or of your original OSFR demonstration
until the earlier of: to the COFs to be added. You do not
(i) Thirty calendar days after BOEM need to resubmit previously accepted
and the designated applicant receive audited annual financial statements
from the instrument issuer a notifica- for the current fiscal year.
tion of intent to cancel; or (b) If you want to drop a COF identi-
(ii) BOEM receives from the des- fied in your current OSFR demonstra-
ignated applicant other acceptable tion, you must submit to BOEM a com-
OSFR evidence; or pleted Form BOEM–1022. You must
(iii) All the COFs to which the in- continue to demonstrate OSFR for the
strument applies are permanently COF until BOEM approves OSFR evi-
abandoned in compliance with 30 CFR dence for the COF from another des-
part 250 or equivalent State require- ignated applicant, or OSFR is no
ments; longer required (e.g., until a well that
(4) That the instrument issuer agrees is a COF is properly plugged and aban-
to direct action for claims made under doned).
OPA up to the guaranty amount, sub-
ject to the defenses in paragraph (a)(6) § 553.43 When is my OSFR demonstra-
of this section and following the proce- tion or the amendment to my OSFR
dures in § 553.60 of this part; demonstration effective?
(5) An agent in the United States for (a) BOEM will notify you in writing
service of process; and when we approve your OSFR dem-
(6) That the instrument issuer will
onstration. If we find that you have not
not use any defenses against a claim
submitted all the information needed
made under OPA except:
to demonstrate OSFR, we may require
(i) The rights and defenses that
would be available to a designated ap- you to provide additional information
plicant or responsible party for whom before we determine whether your
the guaranty was provided; and OSFR evidence is acceptable.
(ii) The incident (i.e., oil-spill dis- (b) Except in the case of self-insur-
charge or a substantial threat of the ance or an indemnity, BOEM accept-
discharge of oil) leading to the claim ance of OSFR evidence is valid until
for removal costs or damages was the surety bond, insurance certificate,
caused by willful misconduct of a re- or other accepted OSFR instrument ex-
sponsible party for whom the des- pires or is canceled. In the case of self-
ignated applicant demonstrated OSFR. insurance or indemnity, acceptance is
(b) You may not change, omit, or add valid until the first day of the 5th
limitations or exceptions to the terms month after the close of your or your
and conditions in a BOEM form that indemnitor’s current fiscal year.
444
§ 553.44 [Reserved] § 553.51 What are the penalties for not

complying with this part?
§ 553.45 Where do I send my OSFR evi- (a) If you fail to comply with the fi-
dence?
nancial responsibility requirements of
Address all correspondence and re- OPA at 33 U.S.C. 2716 or with the re-
quired submissions related to this part quirements of this part, then you may
to: U.S. Department of the Interior, be liable for a civil penalty of up to
Bureau of Ocean Energy Management, $46,192 per COF per day of violation
Gulf of Mexico Region, Oil Spill Finan- (that is, each day a COF is operated
cial Responsibility Program, 1201 Elm- without acceptable evidence of OSFR).
wood Park Boulevard, New Orleans, (b) BOEM will determine the date of
Louisiana 70123. a noncompliance. BOEM will assess
penalties in accordance with an OSFR
Subpart E—Revocation and penalty schedule using the procedures
Penalties found at 30 CFR part 550, subpart N.
You may obtain a copy of the penalty
§ 553.50 How can BOEM refuse or in- schedule from BOEM at the address in
validate my OSFR evidence? § 553.45.
(a) If BOEM determines that any (c) BOEM may assess a civil penalty
OSFR evidence you submit fails to against you that is greater or less than
comply with the requirements of this the amount in the penalty schedule
part, we may not accept it. If we do not after taking into account the factors in
accept your OSFR evidence, then we section 4303(a) of OPA (33 U.S.C. 2716a).
will send you a written notification (d) If you fail to correct a deficiency
stating: in the OSFR evidence for a COF, then
(1) That your evidence is not accept- the Director may suspend operation of
able; a COF in the OCS under 30 CFR 250.170
(2) Why your evidence is unaccept- or seek judicial relief, including an
able; and order suspending the operation of any
(3) The amount of time you are al- COF.
lowed to submit acceptable evidence [76 FR 64623, Oct. 18, 2011, as amended at 81
without being subject to civil penalty FR 43069, July 1, 2016; 82 FR 10711, Feb. 15,
under § 553.51. 2017; 83 FR 8933, Mar. 2, 2018]
(b) BOEM may immediately and
without prior notice invalidate your Subpart F—Claims for Oil-Spill
OSFR demonstration if you: Removal Costs and Damages
(1) Are no longer eligible to be the
designated applicant for a COF in- § 553.60 To whom may I present a
cluded in your demonstration; or claim?
(2) Permit the cancellation or termi- (a) If you are a claimant, you must
nation of the insurance policy, surety present your claim first to the des-
bond, or indemnity upon which the ignated applicant for the COF that is
continued validity of the demonstra- the source of the incident resulting in
tion is based. your claim. If, however, the designated
(c) If BOEM determines you are not applicant has filed a petition for bank-
complying with the requirements of ruptcy under 11 U.S.C. chapter 7 or 11,
this part for any reason other than you may present your claim first to
paragraph (b) of this section, we will any of the designated applicant’s guar-
notify you of our intent to invalidate antors.
your OSFR demonstration and specify (b) If the claim you present to the
the corrective action needed. Unless designated applicant or guarantor is
you take the corrective action BOEM denied or not paid within 90 days after
specifies within 15 calendar days from you first present it or advertising be-
the date you receive such a notice, we gins, whichever is later, then you may
will invalidate your OSFR demonstra- seek any of the following remedies that
tion. apply:
445
§ 553.61 30 CFR Ch. V (7–1–18 Edition)
If the reason for denial or nonpayment is . . . Then you may elect to . . .
(1) Not an assertion of insolvency or petition in bankruptcy (i) Present your claim to any of the responsible parties for the
under 11 U.S.C. chapter 7 or 11, COF; or
(ii) Initiate a lawsuit against the designated applicant and/or
any of the responsible parties for the COF; or
(iii) Present your claim to the Fund using the procedures at 33
CFR part 136.
(2) An assertion of insolvency or petition in bankruptcy under (i) Pursue any of the remedies in items (1)(i) through (iii) of this
11 U.S.C. chapter 7 or 11, table; or
(ii) Present your claim to any of the designated applicant’s
guarantors; or
(iii) Initiate a lawsuit against any of the designated applicant’s
guarantors.
(c) If no one has resolved your claim § 553.62 What are the designated appli-
to your satisfaction using the remedy cant’s notification obligations re-
that you elected under paragraph (b) of garding a claim?
this section, then you may pursue an- If you are a designated applicant, and
other available remedy, unless the you receive a claim for removal costs
Fund has denied your claim or a court and damages, then within 15 calendar
of competent jurisdiction has ruled days of receipt of a claim you must no-
against your claim. You may not pur- tify:
sue more than one remedy at a time. (a) Your guarantors; and
(d) You may ask BOEM to assist you (b) The responsible parties for whom
in determining whether a guarantor you are acting as the designated appli-
may be liable for your claim. Send cant.
your request for assistance to the ad-
dress listed in § 553.45. You must in- Subpart G—Limit of Liability for
clude any information you have regard- Offshore Facilities
ing the existence or identity of possible
guarantors. SOURCE: 79 FR 73840, Dec. 12, 2014, unless
otherwise noted.
§ 553.61 When is a guarantor subject to
direct action for claims? § 553.700 What is the scope of this sub-
part?
(a) If you are a guarantor, then you
This subpart sets forth the limit of
are subject to direct action for any
liability for damages for offshore facili-
claim asserted by:
ties under Title I of the Oil Pollution
(1) The United States for any com- Act of 1990, as amended (33 U.S.C. 2701
pensation paid by the Fund under OPA, et seq.) (OPA), as adjusted, under sec-
including compensation claim proc- tion 1004(d) of OPA (33 U.S.C. 2704(d)).
essing costs; and This subpart also sets forth the method
(2) A claimant other than the United for adjusting the limit of liability for
States if the designated applicant has: damages for offshore facilities for in-
(i) Denied or failed to pay a claim be- flation, by regulation, under section
cause of being insolvent; or 1004(d) of OPA (33 U.S.C. 2704(d)).
(ii) Filed a petition in bankruptcy
under 11 U.S.C. chapters 7 or 11. § 553.701 To which entities does this
subpart apply?
(b) If you participate in an insurance
guaranty for a COF incident (i.e., oil- This subpart applies to you if you are
spill discharge or substantial threat of a responsible party for an offshore fa-
the discharge of oil) that is subject to cility, other than a deepwater port
claims under this part, then your max- under the Deepwater Port Act of 1974
(33 U.S.C. 1501–1524), but including an
imum, aggregate liability for those
offshore pipeline, or an abandoned off-
claims is equal to your quota share of
shore facility, including any abandoned
the insurance guaranty.

offshore pipeline, unless your liability
is unlimited under OPA 90 (33 U.S.C.
2704(c)).
446
Ocean Energy Management, Interior Pt. 553, App.
§ 553.702 What limit of liability applies rule the offshore facility limit of liabil-
to my offshore facility? ity for damages in § 553.702 by an
Except as provided in 33 U.S.C. amount equal to the cumulative per-
2704(c), the limit of liability under OPA cent change in the Annual CPI–U from
for a responsible party for any offshore the year the limit was established by
facility, including any offshore pipe- statute, or last adjusted by regulation,
line, is the total of all removal costs whichever is later. After this adjust-
plus $137.6595 million for damages with ment is made, BOEM will resume its
respect to each incident. process of conducting a review every
three years.
[83 FR 2542, Jan. 18, 2018]
(5) Nothing in this section will pre-
§ 553.703 What is the procedure for vent BOEM, in BOEM’s sole discretion,
calculating the limit of liability ad- from adjusting the offshore facility
justment for inflation? limit of liability for damages for infla-
The procedure for calculating limit tion by regulation issued more fre-
of liability adjustments for inflation is quently than every three years.
as follows: (c) Formula for calculating inflation
(a) Formula for calculating a cumu- adjustments. BOEM calculates adjust-
lative percent change in the Annual CPI– ments to the offshore facility limit of
U. BOEM calculates the cumulative liability in 30 CFR 553.702 for inflation
percent change in the Annual CPI–U using the following formula:
from the year the limit of liability was New limit of liability = Previous limit of li-
established by statute, or last adjusted ability + (Previous limit of liability ×
by regulation, whichever is later (i.e., the decimal equivalent of the percent
the Previous Period), to the year in change in the Annual CPI–U cal-
which the Annual CPI–U is most re- culated under paragraph (a) of this
cently published (i.e., the Current Pe- section), then rounded to the closest
riod), using the following formula: Per- $100.
cent change in the Annual CPI–U =
[(Annual CPI–U for Current Period ¥ § 553.704 How will BOEM publish the
Annual CPI–U for Previous Period) ÷ offshore facility limit of liability ad-
Annual CPI–U for Previous Period] × justment?
100. This cumulative percent change BOEM will publish the inflation-ad-
value is rounded to one decimal place. justed limit of liability, and any statu-
(b) Significance threshold. (1) A cumu- tory amendments to that limit of li-
lative increase in the Annual CPI–U ability in the FEDERAL REGISTER, as
equal to three percent or more con- amendments to § 553.702. Updates to the
stitutes a significant increase in the limit of liability under this section are
Consumer Price Index within the effective on the 90th day after publica-
meaning of 33 U.S.C. 2704(d)(4). tion in the FEDERAL REGISTER of the
(2) Not later than every three years amendments to § 553.702, unless other-
from the year the limit of liability was wise specified by statute (in the event
last adjusted for inflation, BOEM will of a statutory amendment to the limit
evaluate whether the cumulative per- of liability), or in the FEDERAL REG-
cent change in the Annual CPI–U since ISTER rule amending § 553.702.
that year has reached a significance
threshold of three percent or greater. APPENDIX TO PART 553—LIST OF U.S.
(3) For any three-year period evalu- GEOLOGICAL SURVEY TOPOGRAPHIC
ated under paragraph (b)(2) of this sec- MAPS
tion in which the cumulative percent
increase in the Annual CPI–U is less Alabama (1:24,000 scale): Bellefontaine; Bon
than three percent, if BOEM has not Secour Bay; Bridgehead; Coden; Daphne;
issued an inflation adjustment during Fort Morgan; Fort Morgan NW; Grand Bay;
that period, BOEM will publish a no- Grand Bay SW; Gulf Shores; Heron Bay;
Hollingers Island; Isle Aux Herbes; Kreole;
tice of no inflation adjustment to the Lillian; Little Dauphin Island; Little Point
offshore facility limit of liability for
Clear; Magnolia Springs; Mobile; Orange

damages in the FEDERAL REGISTER. Beach; Perdido Beach; Petit Bois Island;
(4) Once the three-percent threshold Petit Bois Pass; Pine Beach; Point Clear;
is reached, BOEM will increase by final Saint Andrews Bay; West Pensacola.
447
Pt. 553, App. 30 CFR Ch. V (7–1–18 Edition)
Alaska (1:63,360 scale): Afognak (A–1, A–2, Bluff; San Pedro; Santa Barbara; Saticoy;
A–3, A–4, A–5, A–0&B–0, B–1, B–2, B–3, C–1&2, Seal Beach; Surf; Tajiguas; Topanga; Tor-
C–2&3, C–5, C–6, D–1, D–4, D–5); Anchorage rance; Tranquillon Mountain; Triunfo Pass;
(A–1, A–2, A–3, A–4, A–8, B–7, B–8); Barrow Tustin; Venice; Ventura; White Ledge Peak.
(A–1, A–2, A–3, A–4, A–5, B–3, B–4); Baird Mts. Florida (1:24,000 scale): Allanton; Alligator
(A–6); Barter Island (A–3, A–4, A–5); Beechy Bay; Anna Maria; Apalachicola; Aripeka;
Point (A–1, A–2, B–1, B–2, B–3, B–4, B–5, C–4, Bayport; Beacon Beach; Beacon Hill; Bee
C–5); Bering Glacier (A–1, A–2, A–3, A–4, A–5, Ridge; Belle Meade; Belle Meade NW; Bev-
A–6, A–7, A–8); Black (A–1, A–2, B–1, C–1); erly; Big Lostmans Bay; Bird Keys; Bokeelia;
Blying Sound (C–7, C–8, D–1&2, D–3, D–4, D–5, Bonita Springs; Bradenton; Bradenton
D–6, D–7, D–8); Candle (D–6); Cordova (A–1, A– Beach; Bruce; Bunker; Cape Romano; Cape
2, A–3, A–4, A–7&8, B–2, B–3, B–4, B–5, B–6, B– Saint George; Cape San Blas; Captiva;
7, B–8, C–5, C–6, C–7, C–8, D–6, D–7, D–8); De Carrabelle; Cedar Key; Chassahowitzka;
Long Mts. (D–4, D–5); Demarcation Point (C– Chassahowitzka Bay; Chiefland SW; Choctaw
1, C–2, D–2, D–3); Flaxman Island (A–1, A–3, Beach; Chokoloskee; Clearwater; Clive Key;
A–4, A–5, B–5); Harrison Bay (B–1, B–2, B–3, Cobb Rocks; Cockroach Bay; Crawfordville
B–4, C–1, C–3, C–4, C–5, D–4, D–5); Icy Bay (D1, East; Crooked Island; Crooked Point; Cross
D–2&3); Iliamna (A–2, A–3, A–4, B–2, B–3, C–1, City SW; Crystal River; Destin; Dog Island;
C–2, D–1); Karluk (A–1, A–2, B–2, B–3, C–1, C– Dunedin; East Pass; Egmont Key; El Jobean;
2, C–4&5, C–6); Kenai (A–4, A–5, A–7, A–8, B– Elfers; Englewood; Englewood NW; Estero;
4, B–6, B–7, B–8, C–4, C–5, C–6, C–7, D–1, D–2, Everglades City; Fivay Junction; Flamingo;
D–3, D–4, D–5); Kodiak (A–3, A–4, A–5, A–6, B– Fort Barrancas; Fort Myers Beach; Fort
1&2, B–3, B–4, B–6, C–1, C–2, C–3, C–5, C–6, D– Myers SW; Fort Walton Beach; Freeport;
1, D–2, D–3, D–4, D–5, D–6); Kotzebue (A–1, A– Gandy Bridge; Garcon Point; Gator Hook
2, A–3, A–4, B–4, B–6, C–1, C–4, C–5, C–6, D–1, Swamp; Gibsonton; Goose Island; Grayton
D–2); Kwiguk (C–6, D–6); Meade River (D–1, Beach; Green Point; Gulf Breeze; Harney
D–3, D–4, D–5); Middleton Island (B–7, D–1&2); River; Harold SE; Holley; Holt SW;
Mt. Katmai (A–1, A–2, A–3; B–1); Mt. Homosassa; Horseshoe Beach; Indian Pass;
Michelson (D–1, D–2, D–3); Mt. St. Elias (A– Jackson River; Jena; Keaton Beach; Laguna
5); Noatak (A–1, A–2, A–3, A–4, B–4, C–4, C–5, Beach; Lake Ingraham East; Lake Ingraham
D–6, D–7); Nome (B–1, C–1, C–2, C–3, D–3, D–4, West; Lake Wimico; Laurel; Lebanon Sta-
D–7); Norton Bay (A–4, B–4, B–5, B–6, C–4, C– tion; Lighthouse Point; Lillian; Long Point;
5, C–6, D–4, D–5, D–6); Point Hope (A–1, A–2, Lostmans River Ranger Station; Manlin
B–2, B–3, C–2, C–3, D–1, D–2); Point Lay (A– Hammock; Marco Island; Mary Esther;
3&4, B–2&3, C–2, D–1, D–2); Selawik (A–5, A– Matlacha; McIntyre; Milton South; Miramar
6, B–5, B–6, C–5, C–6, D–6); Seldovia (A–3, A– Beach; Myakka River; Naples North; Naples
4, A–5, A–6, B–1, B–2, B–3, B–4, B–5, B–6, C–1, South; Navarre; New Inlet; Niceville; Nutall
C–2, C–3, C–4, C–5, D–1, D–3, D–4, D–5, D–8); Rise; Ochopee; Okefenokee Slough; Oldsmar;
Seward (A–1, A–2, A–3, A–4, A–5, A–6, A–7, B– Orange Beach; Oriole Beach; Overstreet;
1, B–2, B–3, B–4, B–5, C–1, C–2, C–3, C–4, C–5, Ozello; Pace; Palmetto; Panama City; Pan-
D–1, D–2, D–3, D–4, D–5, D–6, D–7, D–8); ama City Beach; Panther Key; Pass-A-Grille
Shishmaref (A–2, A–3, A–4, B–1, B–2, B–3); Beach; Pavillion Key; Pensacola; Perdido
Solomon (B–2, B–3, B–6, C–1, C–2, C–3, C–4, C– Bay; Pickett Bay; Pine Island Center;
5, C–6); St. Michael (A–2, A–3, A–4, A–5, A–6, Placida; Plover Key; Point Washington; Port
B–1, B–2, C–1, C–2); Teller (A–2, A–3, A–4, B– Boca Grande; Port Richey; Port Richey NE;
3, B–4, B–5, B–6, C–6, C–7, D–4, D–5, D–6, D–8); Port Saint Joe; Port Tampa; Punta Gorda;
Teshekpuk (D–1, D–2, D–3, D–4, D–5); Tyonek Punta Gorda SE; Punta Gorda SW; Red Head;
(A–1, A–2, A–3, A–4, B–1, B–2); Unalakleet (B– Red Level; Rock Islands; Royal Palm Ham-
5, B–6, C–4, C–5, D–4); Valdez (A–7, A–8); Wain- mock; Safety Harbor; Saint Joseph Point;
wright (A–5, A–6&7, B–2, B–3, B–4, B–5&6, C– Saint Joseph Spit; Saint Marks; Saint Marks
2, C–3, D–1, D–2; Yakutat (A–1, A–2, A–2, B–3, NE; Saint Petersburg; Saint Teresa Beach;
B–4, B–5, C–4, C–5, C–6, C–7, C–8, D–3, D–4, D– Salem SW; Sandy Key; Sanibel; Sarasota;
5, D–6, D–8). Seahorse Key; Seminole; Seminole Hills;
California (1:24,000 scale): Arroyo Grande Shark Point; Shark River Island; Shired Is-
NE; Beverly Hills; Carpinteria; Casmalia; land; Snipe Island; Sopchoppy; South of
Dana Point; Del Mar; Dos Pueblos Canyon; Holley; Southport; Sprague Island; Spring
Encinitas; Gaviota; Goleta; Guadalupe; Im- Creek; Springfield; Steinhatchee;
perial Beach; Laguna Beach; La Jolla; Las Steinhatchee SE; Steinhatchee SW; Sugar
Pulgas Canyon; Lompoc Hills; Long Beach; Hill; Sumner; Suwannee; Tampa; Tarpon
Los Alamitos; Malibu Beach; Morro Bay Springs; Valparaiso; Venice; Vista;
South; National City; Newport Beach; Waccassasa Bay; Ward Basin; Warrior
Oceano; Oceanside; Oxnard; Pismo Beach; Swamp; Weavers Station; Weeki Wachee
Pitas Point; Point Arguello; Point Concep- Spring; West Bay; West Pass; West Pensa-
tion; Point Dune; Point Loma; Point Mugu; cola; Whitewater Bay West; Withlacoochee
Point Sal; Port San Luis; Rancho Santa Fe; Bay; Wulfert; Yankeetown.
Redondo Beach; Sacate; San Clemente; San Louisiana (1:24,000 scale): Alligator Point;
Juan Capistrano; San Luis Rey; San Onofre Barataria Pass; Bastian Bay; Bay Batiste;
448
Bay Coquette; Bay Courant; Bay Dosgris; port; Frozen Point; Galveston; Green Island;
Bay Ronquille; Bay Tambour; Bayou Blanc; Hawk Island; High Island; Hitchcock; Hos-
Bayou Lucien; Belle Isle; Belle Pass; Big kins Mound; Jones Creek; Keller Bay;
Constance Lake; Black Bay North; Black Kleberg Point; La Comal; La Leona; La
Bay South; Breton Islands; Breton Islands Parra Ranch NE; Laguna Vista; Lake Austin;
SE; Buras; Burrwood Bayou East; Burwood Lake Como; Lake Stephenson; Lamar; Long
Bayou West; Calumet Island; Cameron; Island; Los Amigos; Windmill; Maria Estella
Caminada Pass; Cat Island; Cat Island Pass; Well; Matagorda; Matagorda SW; Mesquite
Central Isles Dernieres; Chandeleur Light; Bay; Mission Bay; Morgans Point; Mosquito
Chef Mentur; Cheniere Au Tigre; Cocodrie; Point; Mouth of Rio Grande; Mud Lake;
Coquille Point; Cow Island; Creole; North of Port Isabel NW; North of Port Isa-
Cypremort Point; Deep Lake; Dixon Bay; bel SW; Oak Island; Olivia; Oso Creek NE;
Dog Lake; Door Point; East Bay Junop; Oyster Creek; Palacios; Palacios NE;
Eastern Isles; Dernieres; Ellerslie; Empire; Palacios Point; Palacios SE; Panther Point;
English Lookout; False Mouth Bayou; Panther Point NE; Pass Cavallo SW; Pita Is-
Fearman Lake; Floating Turf Bayou; land; Point Comfort; Point of Rocks; Port
Fourleague Bay; Franklin; Freemason Is- Aransas; Port Arthur South; Port Bolivar;
land; Garden Island Pass; Grand Bayou; Port Ingleside; Port Isabel; Port Isabel NW;
Grand Bayou du Large; Grand Chenier; Port Lavaca East; Port Mansfield; Port
Grand Gosier Islands; Grand Isle; Hackberry O’Connor; Portland; Potrero Cortado;
Beach; Hammock Lake; Happy Jack; Hebert Potrero Lopeno NW; Potrero Lopeno SE;
Lake; Hell Hole Bayou; Hog Bayou; Holly Potrero Lopeno SW; Rockport; Sabine Pass;
Beach; Intercoastal City; Isle Au Pitre; San Luis Pass; Sargent; Sea Isle; Seadrift;
Jacko Bay; Johnson Bayou; Kemper; Lake Seadrift NE; Smith Point; South Bird Island;
Athanasio; Lake Cuatro Caballo; Lake Eloi; South Bird Island NW; South Bird Island SE;
Lake Eugene; Lake Felicity; Lake La South of Palacios Point; South of Potrero
Graisse; Lake Merchant; Lake Point; Lake Lopeno NE; South of Potrero Lopeno NW;
Salve; Lake Tambour; Leeville; Lena La- South of Potrero Lopeno SE; South of Star
goon; Lost Lake; Main Pass; Malheureux Lake; St. Charles Bay; St. Charles Bay SE;
Point; Marone Point; Martello Castle; Mink St. Charles Bay SW; Star Lake; Texas City;
Bayou; Mitchell Key; Morgan City SW; Mor- Texas Point; The Jetties; Three Islands; Tiv-
gan Harbor; Mound Point; Mulberry Island oli SE; Turtle Bay; Umbrella Point; Virginia
East; Mulberry Island West; New Harbor Is- Point; West of Johnson Bayou; Whites
lands; North Islands; Oak Mound Bayou; Oys- Ranch; Yarborough Pass.
ter Bayou; Pass A Loutre East; Pass A
Loutre West; Pass du Bois; Pass Tante
Phine; Pecan Island; Pelican Pass; Peveto PART 556—LEASING OF SULFUR OR
Beach; Pilottown; Plumb Bayou; Point Au OIL AND GAS AND BONDING
Fer; Point Au Fer NE; Point Chevreuil;
Point Chicot; Port Arthur South; Port Sul- REQUIREMENTS IN THE OUTER
phur; Pte. Aux Marchuttes; Proctor Point; CONTINENTAL SHELF
Pumpkin Islands; Redfish Point; Rollover
Lake; Sabine Pass; Saint Joe Pass; Smith Subpart A—General Provisions
Bayou; South of South Pass; South Pass;
Stake Islands; Taylor Pass; Texas Point; Sec.
Three Mile Bay; Tigre Lagoon; Timbalier Is- 556.100 Statement of policy.
land; Triumph; Venice; Weeks; West of John- 556.101 Purpose.
son Bayou; Western Isles Dernieres; 556.102 Authority.
Wilkinson Bay; Yscloskey. 556.103 Cross references.
Mississippi (1:24,000 scale): Bay Saint Louis;
556.104 Information collection and propri-
Biloxi; Cat Island; Chandeleur Light; Deer Is-
etary information.
land; Dog Keys Pass; English Lookout;
Gautier North; Gautier South; Grand Bay 556.105 Acronyms and definitions.
SW; Gulfport North; Gulfport NW; Gulfport 556.106 Service fees.
South; Horn Island East; Horn Island West; 556.107 Corporate seal requirements.
Isle Au Pitre; Kreole; Ocean Springs;
Pascagoula North; Pascagoula South; Pass Subpart B—Oil and Gas Five Year Leasing
Christian; Petit Bois Island; Saint Joe Pass; Program
Ship Island; Waveland.
Texas (1:24,000 scale): Allyns Bright; Ana- 556.200 What is the Five Year leasing pro-
huac; Aransas Pass; Austwell; Bacliff; gram?
Bayside; Big Hill Bayou; Brown Cedar Cut; 556.201 Does BOEM consider multiple uses
Caplen; Carancahua Pass; Cedar Lakes East; of the OCS?
Cedar Lakes West; Cedar Lane NE; Christ- 556.202 How does BOEM start the Five Year
mas Point; Clam Lake; Corpus Christi; Cove; program preparation process?
Crane Islands NW; Crane Islands SW; Decros 556.203 What does BOEM do before pub-
Point; Dressing Point; Estes; Flake; Free- lishing a proposed Five Year program?
449
556.204 How do Governments and citizens RESTRICTIONS ON JOINT BIDDING
comment on a proposed Five Year pro-
556.511 Are there restrictions on bidding
gram?
with others and do those restrictions af-
556.205 What does BOEM do before approv-
fect my ability to bid?
ing a proposed final Five Year program
556.512 What bids may be disqualified?
or a significant revision of a previously-
approved Five Year program? 556.513 When must I file a statement of pro-
duction?
Subpart C—Planning and Holding a Lease 556.514 How do I determine my production
for purposes of the restricted joint bid-
Sale ders list?
556.300 What reports may BOEM and other 556.515 May a person be exempted from joint
Federal agencies prepare before a lease bidding restrictions?
sale?
HOW DOES BOEM ACT ON BIDS?
556.301 What is a Call for Information and
Nominations? 556.516 What does BOEM do with my bid?
556.302 What does BOEM do with the infor- 556.517 What may I do if my bid is rejected?
mation from the Call?
556.303 What does BOEM do if an area pro- AWARDING THE LEASE
posed for leasing is within three nautical 556.520 What happens if I am the successful
miles of the seaward boundary of a coast- high bidder and BOEM accepts my bid?
al State? 556.521 When is my lease effective?
556.304 How is a proposed notice of sale pre- 556.522 What are the terms and conditions
pared? of the lease and when are they published?
556.305 How does BOEM coordinate and con-
sult with States regarding a proposed no- Subpart F—Lease Terms and Obligations
tice of sale?
556.306 What if a potentially oil or gas bear- LENGTH OF LEASE
ing area underlies both the OCS and
lands subject to State jurisdiction? 556.600 What is the primary term of my oil
556.307 What does BOEM do with comments and gas lease?
and recommendations received on the 556.601 How may I maintain my oil and gas
proposed notice of sale? lease beyond the primary term?
556.308 How does BOEM conduct a lease 556.602 What is the primary term of my sul-
sale? fur lease?
556.309 Does BOEM offer blocks in a sale 556.603 How may I maintain my sulfur lease
that is not on the Five Year program beyond the primary term?
schedule (called a Supplemental Sale)?
LEASE OBLIGATIONS
Subpart D—Qualifications 56.604 What are my rights and obligations
as a record title owner?
556.400 When must I demonstrate that I am 556.605 What are my rights and obligations
qualified to hold a lease on the OCS? as an operating rights owner?
556.401 What do I need to show to become
qualified to hold a lease on the OCS and HELIUM
obtain a qualification number?
556.606 What must a lessee do if BOEM
556.402 How do I make the necessary show-
elects to extract helium from a lease?
ing to qualify and obtain a qualification
number?
Subpart G—Transferring All or Part of the
556.403 Under what circumstances may I be
disqualified from holding a lease on the Record Title Interest in a Lease
OCS? 556.700 May I assign or sublease all or any
556.404 What do the non-procurement debar- part of the record title interest in my
ment rules require that I do? lease?
556.405 When must I notify BOEM of merg- 556.701 How do I seek approval of an assign-
ers, name changes, or changes of business ment of the record title interest in my
form? lease, or a severance of operating rights
from that record title interest?
Subpart E—Issuance of a Lease 556.702 When will my assignment result in a
HOW TO BID segregated lease?
556.703 What is the effect of the approval of
556.500 Once qualified, how do I submit a the assignment of 100 percent of the
bid? record title in a particular aliquot(s) of
556.501 What information do I need to sub- my lease and the resulting lease segrega-
mit with my bid? tion?
450
556.704 When would BOEM disapprove an as- 556.809 [Reserved]
signment or sublease of an interest in my 556.810 What must I do with respect to the
lease? designation of operator on a lease when a
556.705 How do I transfer the interest of a transfer of operating rights ownership is
deceased natural person who was a les- submitted?
see?
556.706 What if I want to transfer record Subpart I—Bonding or Other Financial
title interests in more than one lease at Assurance
the same time, but to different parties?
556.707 What if I want to transfer different 556.900 Bond requirements for an oil and gas
types of lease interests (not only record or sulfur lease.
title interests) in the same lease to dif- 556.901 Additional bonds.
ferent parties? 556.902 General requirements for bonds.
556.708 What if I want to transfer my record 556.903 Lapse of bond.
title interests in more than one lease to 556.904 Lease-specific abandonment ac-
the same party? counts.
556.709 What if I want to transfer my record
556.905 Using a third-party guarantee in-
title interest in one lease to multiple
stead of a bond.
parties?
556.710 What is the effect of an assignment 556.906 Termination of the period of liabil-
of a lease on an assignor’s liability under ity and cancellation of a bond.
the lease? 556.907 Forfeiture of bonds and/or other se-
556.711 What is the effect of a record title curities.
holder’s sublease of operating rights on
the record title holder’s liability? Subpart J—Bonus or Royalty Credits for
556.712 What is the effective date of a trans- Exchange of Certain Leases
fer?
556.713 What is the effect of an assignment 556.1000 Leases formerly eligible for a bonus
of a lease on an assignee’s liability under or royalty credit.
the lease?
556.714 As a restricted joint bidder, may I Subpart K—Ending a Lease
transfer an interest to another restricted
joint bidder? 556.1100 How does a lease expire?
556.715 Are there any interests I may trans- 556.1101 May I relinquish my lease or an ali-
fer or record without BOEM approval? quot part thereof?
556.716 What must I do with respect to the 556.1102 Under what circumstances will
designation of operator on a lease when a BOEM cancel my lease?
transfer of record title is submitted?
Subpart L—Leases Maintained Under
Subpart H—Transferring Operating Rights in Section 6 of OCSLA
All or Part of a Lease
556.1200 Effect of regulations on lease.
556.800 As an operating rights owner, may I 556.1201 Section 6(a) leases and leases other
assign all or part of my operating rights than those for oil, gas, or sulfur.
interest?
556.801 How do I seek approval of an assign- Subpart M—Environmental Studies
ment of my operating rights?
556.802 When would BOEM disapprove the 556.1300 Environmental studies.
assignment of all or part of my operating
AUTHORITY: 30 U.S.C. 1701 note, 30 U.S.C.
rights interest?
1711, 31 U.S.C. 9701, 42 U.S.C. 6213, 43 U.S.C.
556.803 What if I want to assign operating
1331 note, 43 U.S.C. 1334, 43 U.SC. 1801–1802.
rights interests in more than one lease at
the same time, but to different parties? SOURCE: 81 FR 18152, Mar. 30, 2016, unless
556.804 What if I want to assign my oper- otherwise noted.
ating rights interest in a lease to mul-
tiple parties?
556.805 What is the effect of an operating Subpart A—General Provisions
rights owner’s assignment of operating
rights on the assignor’s liability? § 556.100 Statement of policy.
556.806 What is the effective date of an as- The management of Outer Conti-
signment of operating rights? nental Shelf (OCS) resources is to be
556.807 What is the effect of an assignment
conducted in accordance with the find-
of operating rights on an assignee’s li-
ings, purposes, and policy directions
ability?
556.808 As an operating rights owner, are provided by the Outer Continental
there any interests I may assign without Shelf Lands Act Amendments of 1978
BOEM approval? (OCSLA or the Act) (43 U.S.C. 1332,
451
§ 556.101 30 CFR Ch. V (7–1–18 Edition)
1801, 1802), and other executive, legisla- § 556.103 Cross references.

tive, judicial and departmental guid- The following includes some of the
ance. The Secretary of the Interior (the major regulations relevant to offshore
Secretary) will consider available envi- oil and gas development:
ronmental information in making deci- (a) For other applicable Bureau of
sions affecting OCS resources. Ocean Energy Management (BOEM) oil
and gas regulations, see 30 CFR parts
§ 556.101 Purpose. 550 through 560.
The purpose of the regulations in this (b) For Bureau of Safety and Envi-
part is to establish the procedures ronmental Enforcement (BSEE) regula-
under which the Secretary will exercise tions governing exploration, develop-
the authority to administer a leasing ment and production, and oil spill re-
program for oil and gas, and sulfur. sponse, see 30 CFR chapter II.
The regulations pertaining to the pro- (c) For Office of Natural Resources
cedures under which the Secretary will Revenue (ONRR) regulations related to
exercise the authority to administer a rentals, royalties, and fees, see 30 CFR
program to grant rights-of-use and chapter XII.
easements are found in part 550 of this (d) For BOEM regulations governing
chapter. the appeal of an order or decision
issued under the regulations in this
§ 556.102 Authority. part, see 30 CFR part 590.
(e) For regulations on the National
(a) The Outer Continental Shelf Environmental Policy Act (NEPA), see
Lands Act (OCSLA) (43 U.S.C. 1334) au- 40 CFR 1500–1508 and 43 CFR part 46.
thorizes the Secretary of the Interior (f) For ocean dumping sites, see the
to issue, on a competitive basis, leases U.S. Environmental Protection Agency
for oil and gas, and sulfur, in sub- (USEPA) listing—40 CFR part 228.
merged lands of the OCS. The Act au- (g) For air quality, see USEPA regu-
thorizes the Secretary to grant rights- lations at 40 CFR part 55 and BOEM
of-way and easements through the sub- regulations at 30 CFR part 550 subparts
merged lands of the OCS. B and C.
(b) The Federal Oil and Gas Royalty (h) For related National Oceanic and
Management Act of 1982 (FOGRMA) (30 Atmospheric Administration (NOAA)
U.S.C. 1711) governs oil and gas royalty programs, see:
management and requires the develop- (1) Marine Sanctuary regulations, 15
ment of enforcement practices to en- CFR part 922;
sure the prompt and proper collection (2) Fishermen’s Contingency Fund, 50
of oil and gas revenues owed to the CFR part 296;
U.S. (3) Coastal Zone Management Act
(c) The Independent Offices Appro- (CZMA), 15 CFR part 930;
priations Act of 1952 (IOAA) (31 U.S.C. (4) Essential Fish Habitat, 50 CFR
9701) authorizes fees and charges for 600.90.
Federal government services. (i) For U.S. Coast Guard (USCG) reg-
ulations on the oil spill liability of ves-
(d) The Energy Policy and Conserva-
sels and operators, see 33 CFR parts
tion Act of 1975 (42 U.S.C. 6213) pro-
132, 135, and 136.
hibits joint bidding by major oil and
(j) For USCG regulations on port ac-
gas producers.
cess routes, see 33 CFR part 164.
(e) The Gulf of Mexico Energy Secu- (k) For Department of Transpor-
rity Act of 2006 (GOMESA) (Pub. L. 109– tation regulations on offshore pipeline
432, 43 U.S.C. 1331 note): facilities, see 49 CFR part 195.
(1) Shares leasing revenues with Gulf (1) For Department of Defense regu-
producing states and the Land & Water lations on military activities on off-
Conservation Fund for coastal restora- shore areas, see 32 CFR part 252.
tion projects; and
(2) Allows companies to exchange § 556.104 Information collection and
certain existing leases in moratorium proprietary information.

areas for bonus and royalty credits to (a) Information collection. (1) The Of-
be used on other Gulf of Mexico leases. fice of Management and Budget (OMB)
452
approved the collection of information issued by the Secretary is proprietary

under 44 U.S.C. 3501–3521), and assigned information.
OMB Control Number 1010–0006. The (2) Notwithstanding paragraph (c)(1)
title of this collection of information is of this section, BOEM may provide a
‘‘Leasing of Sulfur or Oil and Gas in summary of indications of interest in
the Outer Continental Shelf (30 CFR areas received in response to a Call for
part 550, part 556, and part 560).’’ a proposed sale.
(2) BOEM collects this information to
determine if an applicant seeking to § 556.105 Acronyms and definitions.
obtain a lease or right-of-use and ease- (a) Acronyms and terms used in this
ment (RUE) on the OCS is qualified to part have the following meanings:
hold such a lease or RUE and to deter- ASTM American Society for Testing and
mine whether any such applicant can Materials
meet the monetary and non-monetary BAST Best Available and Safest Tech-
requirements associated with a lease or nology
RUE. Responses to this information BOEM Bureau of Ocean Energy Manage-
collection are either required to obtain ment
BSEE Bureau of Safety and Environmental
or retain a benefit or are mandatory Enforcement
under OCSLA (43 U.S.C. 1331–1356a). CFR Code of Federal Regulations
BOEM will protect proprietary infor- CPA Central Planning Area of the GOM
mation collected according to section CZMA Coastal Zone Management Act
26 of OCSLA (43 U.S.C. 1352), and this DOI Department of the Interior
section. DOCD Development Operations Coordina-
tion Document
(3) The Paperwork Reduction Act of DOO Designation of Operator
1995 (44 U.S.C. 3501–3521) requires us to DPP Development and Production Plan
inform the public that an agency may EIA Environmental Impact Analysis
not conduct or sponsor, and that no EP Exploration Plan
one is required to respond to, a collec- EPA Eastern Planning Area of the GOM
tion of information unless it displays a EPAct Energy Policy Act of 2005
FNOS Final Notice of Sale
current and valid OMB control number. FOGRMA Federal Oil and Gas Royalty
(4) Send comments regarding any as- Management Act of 1982
pect of the collection of information G&G Geological and Geophysical
under this part, including suggestions GDIS Geophysical Data and Information
for reducing the burden, to the Infor- Statement
mation Collection Clearance Officer, GOM Gulf of Mexico
GOMESA Gulf of Mexico Energy Security
Bureau of Ocean Energy Management, Act of 2006
by mail at 45600 Woodland Road, Ster- IOAA Independent Offices Appropriations
ling, VA 20166 or by email to Act of 1952
regulation1@boem.gov, or by phone at LLC Limited Liability Company
(703) 787–1025. MBB Mapping and Boundary Branch
(b) Proprietary information. (1) Any NAD North American Datum
NEPA National Environmental Policy Act
proprietary information maintained by
of 1969
BOEM will be subject to the require- NGPA Natural Gas Processors Association
ments of 43 CFR part 2. NOAA National Oceanic and Atmospheric
(2) No proprietary information re- Administration
ceived by BOEM under 43 U.S.C. 1352(c) NTL Notice to Lessees
will be transmitted to any affected OCS Outer Continental Shelf
State unless the lessee, to whom such OCSLA Outer Continental Shelf Lands Act
OMB Office of Management and Budget
information applies, or the permittee ONRR Office of Natural Resources Revenue
and all persons, to whom such per- OPD Official Protraction Diagram
mittee has sold such information under PNOS Proposed Notice of Sale
promise of confidentiality, agree to PRA Paperwork Reduction Act
such transmittal. ROW Right of way
(c) Proprietary information in re- RSV Royalty Suspension Volume
RUE Right of Use and Easement
sponse to a Call for Information and
SLA Submerged Lands Act of 1953

Nominations (Call). U.S. United States
(1) A specific indication of interest in U.S.C. United States Code
an area received in response to a Call USCG U.S. Coast Guard
453
§ 556.105 30 CFR Ch. V (7–1–18 Edition)
USEPA U.S. Environmental Protection lease’s area, which can be a half of a
Agency lease (1⁄2), a quarter of a lease (1⁄4), a
UTM Universal Transverse Mercator co- quarter of a quarter of a lease (1⁄4 1⁄4), or
ordinate system
a quarter of a quarter of a quarter of a
WPA Western Planning Area of the GOM
lease (1⁄4 1⁄4 1⁄4).
(b) As used in this part, each of the Authorized officer means any person
terms and phrases listed below has the authorized by law or by delegation of
meaning given in the Act or as defined authority to or within BOEM to per-
in this section. form the duties described in this part.
Act means the Outer Continental Average daily production means the
Shelf Lands Act, as amended (OCSLA) total of all production in an applicable
(43 U.S.C. 1331–1356a). production period that is chargeable
Affected State means, with respect to under § 556.514 divided by the exact
any program, plan, lease sale, or other number of calendar days in the applica-
activity proposed, conducted, or ap- ble production period.
proved pursuant to the provisions of Barrel means 42 U.S. gallons. All
OCSLA, any State: measurements of crude oil and natural
(i) The laws of which are declared, gas liquids under this section must be
pursuant to section 4(a)(2) of OCSLA at 60 °F.
(43 U.S.C. 1333(a)(2)), to be the law of (i) For purposes of computing produc-
the United States for the portion of the tion and reporting of natural gas, 5,626
OCS on which such activity is, or is cubic feet of natural gas at 14.73 pounds
proposed to be, conducted; per square inch equals one barrel.
(ii) Which is, or is proposed to be, di- (ii) For purposes of computing pro-
rectly connected by transportation fa- duction and reporting of natural gas
cilities to any artificial island or struc- liquids, 1.454 barrels of natural gas liq-
ture referred to in section 4(a)(1) of uids at 60 °F equals one barrel of crude
OCSLA (43 U.S.C. 1333(a)(1)); oil.
(iii) Which is receiving, or in accord- Bidding unit means one or more OCS
ance with the proposed activity will re- blocks, or any portion thereof, that
ceive, oil for processing, refining, or may be bid upon as a single adminis-
transshipment that was extracted from trative unit and will become a single
the OCS and transported directly to lease. The term ‘tract,’’ as defined in
that State by means of one or more this section, may be used interchange-
vessels or by a combination of means, ably with the term ‘‘bidding unit.’’
including a vessel; BOEM means Bureau of Ocean En-
(iv) Which is designated by the Sec- ergy Management of the U.S. Depart-
retary as a State in which there is a ment of the Interior.
substantial probability of significant Bonus or royalty credit means a legal
impact on or damage to the coastal, instrument or other written docu-
marine, or human environment; or a mentation approved by BOEM, or an
State in which there will be significant entry in an account managed by the
changes in the social, governmental, or Secretary, that a bidder or lessee may
economic infrastructure resulting from use in lieu of any other monetary pay-
the exploration, development, and pro- ment for a bonus or a royalty due on
duction of oil and gas anywhere on the oil or gas production from certain
OCS; or leases, as specified in, and permitted
(v) In which the Secretary finds that by, the Gulf of Mexico Energy Security
because of such activity, there is, or Act of 2006, Pub. L. 109–432 (Div. C,
will be, a significant risk of serious Title 1), 120 Stat. 3000 (2006), codified at
damage, due to factors such as pre- 43 U.S.C. 1331, note.
vailing winds and currents, to the ma- BSEE means Bureau of Safety and
rine or coastal environment in the Environmental Enforcement of the
event of any oil spill, blowout, or re- U.S. Department of the Interior.
lease of oil or gas from one or more Central Planning Area (CPA) means
vessels, pipelines, or other trans- that portion of the Gulf of Mexico that
shipment facilities. lies southerly of Louisiana, Mississippi,

Aliquot or Aliquot part means an offi- and Alabama. Precise boundary infor-
cially designated subdivision of a mation is available from the BOEM
454
Leasing Division, Mapping and Bound- Desoto Canyon OPD means the Offi-
ary Branch (MBB). cial Protraction Diagram (OPD) des-
Coastal environment means the phys- ignated as Desoto Canyon that has a
ical, atmospheric, and biological com- western edge located at the universal
ponents, conditions, and factors that transverse mercator (UTM) X coordi-
interactively determine the produc- nate 1,346,400 in the North American
tivity, state, condition, and quality of Datum of 1927 (NAD27).
the terrestrial ecosystem from the Destin Dome OPD means the Official
shoreline inland to the boundaries of Protraction Diagram (OPD) designated
the coastal zone. as Destin Dome that has a western
Coastal zone means the coastal waters edge located at the Universal Trans-
(including the lands therein and there- verse Mercator (UTM) X coordinate
under) and the adjacent shorelands (in- 1,393,920 in the NAD27.
cluding the water therein and there- Development block means a block, in-
under), strongly influenced by each cluding a block susceptible to drain-
other and in proximity to the shore- age, which is located on the same gen-
lines of one or more of the several eral geologic structure as an existing
coastal States, and includes islands, lease having a well with indicated hy-
transition and intertidal areas, salt drocarbons; a reservoir may or may not
marshes, wetlands, and beaches, whose be interpreted to extend on to the
zone extends seaward to the outer limit block.
of the United States territorial sea and
extends inland from the shore lines to
BOEM of the U.S. Department of the
the extent necessary to control
Interior, or an official authorized to
shorelands, the uses of which have a di-
act on the Director’s behalf.
rect and significant impact on the
Eastern Planning Area (EPA) means
coastal waters, and the inland bound-
that portion of the Gulf of Mexico that
aries of which may be identified by the
lies southerly and westerly of Florida.
several coastal States, under section
Precise boundary information is avail-
305(b)(1) of the Coastal Zone Manage-
able from the BOEM Leasing Division,
ment Act (CZMA) of 1972, 16 U.S.C.
Mapping and Boundary Branch.
1454(b)(1).
Coastline means the line of mean or- Economic interest means any right to,
dinary low water along that portion of or any right dependent upon, produc-
the coast in direct contact with the tion of crude oil, natural gas, or nat-
open sea and the line marking the sea- ural gas liquids and includes, but is not
ward limit of inland waters. limited to: a royalty interest; an over-
Crude oil means a mixture of liquid riding royalty interest, whether pay-
hydrocarbons, including condensate able in cash or kind; a working interest
that exists in natural underground res- that does not include a record title in-
ervoirs and remains liquid at atmos- terest or an operating rights interest; a
pheric pressure after passing through carried working interest; a net profits
surface separating facilities, but does interest; or a production payment.
not include liquid hydrocarbons pro- Human environment means the phys-
duced from tar sand, gilsonite, oil ical, social, and economic components,
shale, or coal. conditions, and factors that inter-
Designated operator means a person actively determine the state, condi-
authorized to act on your behalf and tion, and quality of living conditions,
fulfill your obligations under the Act, employment, and health of those af-
the lease, and the regulations, who has fected, directly or indirectly, by activi-
been designated as an operator by all ties occurring on the OCS.
record title holders and all operating Initial period or primary term means
rights owners that own an operating the initial period referred to in 43
rights interest in the aliquot/depths in U.S.C. 1337(b)(2).
which the designated operator, to Joint bid means a bid submitted by
which the Designation of Operator two or more persons for an oil and gas
form applies, will be operating, and lease under section 8(a) of the Act.
who has been approved by BOEM to act Lease means an agreement that is
as designated operator. issued under section 8 or maintained
455
§ 556.105 30 CFR Ch. V (7–1–18 Edition)
under section 6 of the Act and that au- (A) Ethane—C2H6

thorizes exploration for, and develop- (B) Propane—C3H8
ment and production of, minerals on (C) Butane—C4H10, including all prod-
the OCS. The term also means the area ucts covered by NGPA specifications
covered by that agreement, whichever for commercial butane, including
the context requires. isobutane, normal butane, and other
Lease interest means one or more of butanes—all butanes not included as
the following ownership interests in an isobutane or normal butane;
OCS oil and gas or sulfur lease: a (D) Butane-Propane Mixtures—All
record title interest, an operating products covered by NGPA specifica-
rights interest, or an economic inter- tions for butane-propane mixtures;
est. (E) Natural Gasoline—A mixture of
Lessee means a person who has en- hydrocarbons extracted from natural
tered into a lease with the United gas, that meets vapor pressure, end
States to explore for, develop, and point, and other specifications for nat-
produce the leased minerals and is ural gasoline set by NGPA;
therefore a record title owner of the (F) Plant Condensate—A natural gas
lease, or the BOEM-approved assignee- plant product recovered and separated
owner of a record title interest. The as a liquid at gas inlet separators or
term lessee also includes the BOEM-ap- scrubbers in processing plants or field
proved sublessee- or assignee-owner of facilities; and
an operating rights interest in a lease. (G) Other Natural Gas plant products
Marine environment means the phys- meeting refined product standards (i.e.,
ical, atmospheric, and biological com- gasoline, kerosene, distillate, etc.).
ponents, conditions, and factors that Operating rights means an interest
interactively determine the produc- created by sublease out of the record
tivity, state, conditions, and quality of title interest in an oil and gas lease,
the marine ecosystem, including the authorizing the owner to explore for,
waters of the high seas, the contiguous develop, and/or produce the oil and gas
zone, transitional and intertidal areas, contained within a specified area and
salt marshes, and wetlands within the depth of the lease (i.e., operating rights
coastal zone and on the OCS. tract).
Mineral means oil, gas, and sulfur; it Operating rights owner means the
also includes sand, gravel, and salt holder of operating rights.
used to facilitate the development and Operating rights tract means the area
production of oil, gas, and sulfur. within the lease from which the oper-
Natural gas means a mixture of hy- ating rights have been severed on an
drocarbons and varying quantities of aliquot basis from the record title in-
non-hydrocarbons that exist in the gas- terest, defined by a beginning and end-
eous phase. ing depth.
Natural gas liquids means liquefied pe- Operator means the person designated
troleum products produced from res- as having control or management of
ervoir gas and liquefied at surface sep- operations on the leased area or a por-
arators, field facilities, or gas proc- tion thereof. An operator may be a les-
essing plants worldwide, including any see, the operating rights owner, or a
of the following: designated agent of the lessee or the
(i) Condensate—natural gas liquids operating rights owner.
recovered from gas well gas (associated Outer Continental Shelf (OCS) means
and non-associated) in separators or all submerged lands lying seaward and
field facilities; or outside of the area of lands beneath
(ii) Gas plant products—natural gas navigable waters as defined in the Sub-
liquids recovered from natural gas in merged Lands Act (43 U.S.C. 1301–1315)
gas processing plants and from field fa- and of which the subsoil and seabed ap-
cilities. Gas plant products include the pertain to the United States and are
following, as classified according to the subject to its jurisdiction and control.
standards of the Natural Gas Proc- Outer Continental Shelf Lands Act
essors Association (NGPA) or the (OCSLA) means the Outer Continental

American Society for Testing and Ma- Shelf Lands Act (43 U.S.C. 1331–1356a),
terials (ASTM): as amended.
456
Owned, as used in the context of re- employee authorized to act on the Sec-
stricted joint bidding or a statement of retary’s behalf.
production, means: Security or securities means any note,
(i) With respect to crude oil—having stock, treasury stock, bond, debenture,
either an economic interest in or a evidence of indebtedness, certificate of
power of disposition over the produc- interest or participation in any profit-
tion of crude oil; sharing agreement; collateral-trust
(ii) With respect to natural gas—hav- certificate; pre-organization certificate
ing either an economic interest in or a or subscription; transferable share; in-
power of disposition over the produc- vestment contract; voting-trust certifi-
tion of natural gas; and cate; certificate of deposit for a secu-
(iii) With respect to natural gas liq- rity; fractional undivided interest in
uids—having either an economic inter- oil, gas, or other mineral rights; or, in
est in or a power of disposition over general, any interest or instrument
any natural gas liquids at the time of commonly known as a ‘‘security’’ or
completion of the liquefaction process. any certificate of interest or participa-
Pensacola OPD means the Official tion in, temporary or interim certifi-
Protraction Diagram (OPD) designated cate for, receipt for, guarantee of, or
as Pensacola that has a western edge warrant or right to subscribe to or pur-
located at the UTM X coordinate chase any of the foregoing.
1,393,920 in the NAD27. Single bid means a bid submitted by
Person means a natural person, where one person for an oil and gas lease
so designated, or an entity, such as a under section 8(a) of the Act.
partnership, association, State, polit- Six-month bidding period means the 6-
ical subdivision of a State or territory, month period of time:
or a private, public, or municipal cor- (i) From May 1 through October 31;
poration. or
Planning area means a large portion
(ii) from November 1 through April
of the OCS, consisting of contiguous
30.
OCS blocks, defined for administrative
planning purposes. Statement of production means, in the
Primary term or initial period means context of joint restricted bidders, the
the initial period referred to in 43 following production during the appli-
U.S.C. 1337(b)(2). cable prior production period:
Regional Director means the BOEM of- (i) The average daily production in
ficer with responsibility and authority barrels of crude oil, natural gas, and
for a Region within BOEM. natural gas liquids which it owned
Regional Supervisor means the BOEM worldwide;
officer with responsibility and author- (ii) The average daily production in
ity for leasing or other designated pro- barrels of crude oil, natural gas, and
gram functions within a BOEM Region. natural gas liquids owned worldwide by
Right-of-Use and Easement (RUE) every subsidiary of the reporting per-
means a right to use a portion of the son;
seabed at an OCS site other than on a (iii) The average daily production in
lease you own, for the construction barrels of crude oil, natural gas, and
and/or use of artificial islands, facili- natural gas liquids owned worldwide by
ties, installations, and other devices, any person or persons of which the re-
established to support the exploration, porting person is a subsidiary; and
development or production of oil and (iv) The average daily production in
gas, mineral, or energy resources from barrels of crude oil, natural gas, and
an OCS or State submerged lands lease. natural gas liquids owned worldwide by
Right-of-Way (ROW) means an au- any subsidiary, other than the report-
thorization issued by BSEE under the ing person, of any person or persons of
authority of section 5(e) of the OCSLA which the reporting person is a sub-
(43 U.S.C. 1334(e)) for the use of subsidiary.
merged lands of the Outer Continental Tract means one or more OCS blocks,
Shelf for pipeline purposes. or any leasable portion thereof, that

Secretary means the Secretary of the will be part of a single oil and gas
Interior or an official or a designated lease. The term tract may be used
457
§ 556.106 30 CFR Ch. V (7–1–18 Edition)
interchangeably with the term ‘‘bid- RUE holder for a State or Federal
ding unit.’’ lease, or a pipeline ROW holder.
We, us, and our mean BOEM or the
[81 FR 18152, Mar. 30, 2016, as amended at 81
Department of the Interior, depending
FR 70358, Oct. 12, 2016]
on the context in which the word is
used. § 556.106 Service fees.
Western Planning Area (WPA) means
that portion of the Gulf of Mexico that (a) The table in this paragraph shows
lies south and east of Texas. Precise the fees you must pay to BOEM for the
boundary information is available from services listed. BOEM will adjust the
the Leasing Division, Mapping and fees periodically according to the Im-
Boundary Branch. plicit Price Deflator for Gross Domes-
You, depending on the context of the tic Product and publish a document
regulations, means a bidder, a prospec- showing the adjustment in the FED-
tive bidder, a lessee (record title ERAL REGISTER. If a significant adjust-
owner), an operating rights owner, an ment is needed to arrive at a new fee
applicant seeking to become an as- for any reason other than inflation,
signee of record title or operating then a proposed rule containing the
rights, a designated operator or agent new fees will be published in the FED-
of the lessee, a predecessor lessee, a ERAL REGISTER for comment.
SERVICE FEE TABLE

Service—processing of the following: Fee amount 30 CFR Citation
(1) Assignment of record title interest in Federal oil and gas lease(s) for BOEM ap-
proval. ............................................................................................................................ $198 § 556.701(a)
(2) Sublease or Assignment of operating rights interest in Federal oil and gas lease(s)
for BOEM approval. ....................................................................................................... 198 § 556.801(a)
(3) Required document filing for record purpose, but not for BOEM approval. ............... 29 § 556.715(a)
§ 556.808(a)
(4) Non-required document filing for record purposes. ..................................................... 29 § 556.715(b)
§ 556.808(b)
(b) Evidence of payment via pay.gov any requirement to use a corporate

of the fees listed in paragraph (a) of seal under this chapter will be satis-
this section must accompany the sub- fied, and you will not need to affix your
mission of a document for approval or corporate seal to such document or in-
filing, or be sent to an office identified formation, if:
by the Regional Director. (1) You properly file with BOEM a
(c) Once a fee is paid, it is nonrefund- paper, with a corporate seal and the
able, even if your service request is signature of the authorized person(s),
withdrawn. stating that electronic submissions
(d) If your request is returned to you made by you will be legally binding, as
as incomplete, you are not required to set forth in § 560.502 of this chapter; and
submit a new fee with the amended (2) You make electronic submissions
submission. to BOEM through a secure electronic
(e) The pay.gov Web site is accessible filing system that conforms to the re-
at https://www.pay.gov/paygov/ or quirements of § 560.500; or,
through the BOEM Web site at http:// (b) You may file with BOEM a non-
www.boem.gov/Fees-for-Services. electronic document, containing a cor-
(f) The fees listed in the table above porate seal and the signature of an au-
apply equally to any document or in- thorized person(s), attesting that fu-
formation submitted electronically ture documents and information filed
pursuant to part 560, subpart E, of this by you by electronic or non-electronic
chapter. means will be legally binding without
an affixed corporate seal. If you file
§ 556.107 Corporate seal requirements. such a non-electronic attestation docu-
(a) If you electronically submit to ment with BOEM, any requirement for
BOEM any document or information use of a corporate seal under the regu-
referenced in § 560.500 of this chapter, lations of this chapter will be satisfied,
458
and you will not need to affix your cor- pose, BOEM invites and considers sug-
porate seal to submissions where they gestions from States and local govern-
would have been otherwise required. ments, industry, and any other inter-
(c) If the State or territory in which ested parties, primarily through public
you are incorporated does not issue or notice and comment procedures. BOEM
require corporate seals, the document also invites and considers suggestions
referred to in paragraphs (a) and (b) of from Federal agencies.
this section need not contain a cor-
porate seal, but must still contain the § 556.202 How does BOEM start the
signature of the authorized person(s), a Five Year program preparation
statement that the State in which you process?
are incorporated does not issue or re- To begin preparation of the Five
quire corporate seals, and a statement Year program, BOEM invites and con-
that submissions made by you will be siders nominations for any areas to be
legally binding. included or excluded from leasing, by
(d) Any document, or information doing the following:
submitted without corporate seal must
(a) BOEM prepares and makes public
still contain the signature of an indi-
official protraction diagrams and leas-
vidual qualified to sign who has the
ing maps of OCS areas. In any area
requisite authority to act on your be-
properly included in the official Five
half.
Year diagrams and maps, any area not
(e) Any document or information
submitted pursuant to this section is already leased for oil and gas may be
submitted subject to the penalties of 18 offered for lease.
U.S.C. 1001, as amended by the False (b) BOEM invites and considers sug-
Statements Accountability Act of 1996. gestions and relevant information from
governors of States, local governments,
industry, Federal agencies, and other
Subpart B—Oil and Gas Five Year interested parties, through a publica-
Leasing Program tion of a request for information in the
§ 556.200 What is the Five Year leasing FEDERAL REGISTER. Any local govern-
program? ment must first submit its comments
on the request for information to its
Section 18(a) of OCSLA (43 U.S.C.
State governor before sending the com-
1344(a)), requires the Secretary to pre-
ments to BOEM.
pare an oil and gas leasing program
that consists of a five-year schedule of (c) BOEM sends a letter to the gov-
proposed lease sales to best meet na- ernor of each affected State asking the
tional energy needs, showing the size, governor to identify specific laws,
timing, and location of leasing activity goals, and policies that should be con-
as precisely as possible. BOEM prepares sidered. Each State governor, as well
the five year schedule of proposed lease as the Department of Commerce, is re-
sales consistent with the principles set quested to identify the relationship be-
out in section 18(a)(1) and (2)(A)-(H) of tween any oil and gas activity and the
OCSLA (43 U.S.C. 1344(a)(1) and (2)(A)- State under sections 305 and 306 of the
(H)) to obtain a proper balance among CZMA, 16 U.S.C. 1454 and 1455.
the potential for environmental dam- (d) BOEM asks the Department of
age, the potential for the discovery of Energy for information on regional and
oil and gas, and the potential for ad- national energy markets and transpor-
verse impact on the coastal zone, as re- tation networks.
quired by OCSLA section 18(a)(3) (43
U.S.C. 1344(a)(3)). § 556.203 What does BOEM do before
publishing a proposed Five Year
§ 556.201 Does BOEM consider mul- program?
tiple uses of the OCS? After considering the comments and
BOEM gathers information about information described in § 556.202,
multiple uses of the OCS in order to as- BOEM will prepare a draft proposed
sist the Secretary in making decisions Five Year program.

on the 5-year program pursuant to pro- (a) At least 60 days before publication
visions of 43 U.S.C. 1344. For this pur- of a proposed program, BOEM will send
459
§ 556.204 30 CFR Ch. V (7–1–18 Edition)
a letter, together with the draft pro- ernor of a State, or the executive of a
posed program, to the governor of each local government.
affected State, inviting the governor to
comment on the draft proposed pro- Subpart C—Planning and Holding
gram. a Lease Sale
(b) A governor, whether for purposes
of preparing that State’s comments or § 556.300 What reports may BOEM and
otherwise, may solicit comments from other Federal agencies prepare be-
local governments that he determines fore a lease sale?
may be affected by an oil and gas leas- For an oil and gas lease sale in a Five
ing program. Year program, and as the need arises
(c) If a governor’s comments on the for other mineral leasing pursuant to
draft proposed program are received by part 581 of this chapter, BOEM will pre-
BOEM at least 15 days before submis- pare a report describing the general ge-
sion of the proposed program to Con- ology and potential mineral resources
gress and its publication for comment of the area under consideration. The
in the FEDERAL REGISTER, BOEM will Director may request other interested
reply to the governor in writing. Federal agencies to prepare reports de-
scribing, to the extent known, any
§ 556.204 How do governments and other valuable resources contained
citizens comment on a proposed within the general area and the poten-
Five Year program? tial effect of mineral operations upon
BOEM publishes the proposed pro- the resources or upon the total envi-
gram in the FEDERAL REGISTER for ronment or other uses of the area.
comment by the public. At the same
time, BOEM sends the proposed pro- § 556.301 What is a Call for Informa-
gram to the governors of the affected tion and Nominations?
States and to Congress and the Attor- BOEM issues a Call for Information
ney General of the United States for and Nominations (‘‘Call’’) on an area
review and comment. proposed for leasing in the Five Year
(a) Governors are responsible for pro- program through publication in the
viding a copy of the proposed program FEDERAL REGISTER and other publica-
to affected local governments in their tions. A Call may include more than
States. Local governments may com- one proposed sale. Comments are re-
ment directly to BOEM, but must also quested from industry and the public
send their comments to the governor of on:
their State. (a) Industry interest in the area pro-
(b) All comments from any party are posed for leasing, including nomina-
due within 90 days after publication of tions or indications of interest in spe-
the request for comments in the FED- cific blocks within the area;
ERAL REGISTER. (b) Geological conditions, including
bottom hazards;
§ 556.205 What does BOEM do before (c) Archaeological sites on the seabed
approving a proposed final Five or near shore;
Year program or a significant revi- (d) Potential multiple uses of the
sion of a previously-approved Five proposed leasing area, including navi-
Year program? gation, recreation, and fisheries;
At least 60 days before the Secretary (e) Areas that should receive special
may approve a proposed final Five Year concern and analysis; and
program or a significant revision to a (f) Other socioeconomic, biological,
previously approved final Five Year and environmental information.
program, BOEM will submit a proposed
final program or proposed significant § 556.302 What does BOEM do with the
revision to the President and Congress. information from the Call?
BOEM will also submit comments re- (a) Based upon information and
ceived and indicate the reasons why nominations received in response to
BOEM did or did not accept any spe- the Call, and in consultation with ap-
cific recommendation of the Attorney propriate Federal agencies, the Direc-
General of the United States, the gov- tor will develop a recommendation of
460
areas proposed for leasing for the Sec- § 556.303 What does BOEM do if an
retary for further consideration for area proposed for leasing is within
leasing and/or environmental analysis. three nautical miles of the seaward
(1) In developing the recommenda- boundary of a coastal State?
tion, the Director will consider avail- For an area proposed for leasing that
able information concerning the envi- is within three nautical miles of the
ronment, conflicts with other uses, re- seaward boundary of a coastal State, as
source potential, industry interest, and governed by section 8(g)(1) of OCSLA
other relevant information, including (43 U.S.C. 1337(g)(1)):
comments received from State and (a) BOEM provides the governor of
local governments and other interested the coastal State, subject to the con-
parties in response to the Call. fidentiality requirements in this chap-
(2) The Director, on his/her own mo- ter:
tion, may include in the recommenda- (1) A schedule for leasing; and
tion areas in which interest has not (2) An estimate of the potential oil
been indicated in response to a Call. In and gas resources.
making a recommendation, the Direc- (b) At the request of the governor of
tor will consider all available environ- a coastal State, BOEM will provide to
mental information. that governor, subject to the confiden-
(3) Upon approval by the Secretary, tiality requirements in this chapter:
the Director will announce the area (1) Information concerning geo-
identified in the FEDERAL REGISTER. graphical, geological, and ecological
(b) BOEM will evaluate the area(s) characteristics; and
identified for further consideration for (2) An identification of any field, geo-
the potential effects of leasing on the logical structure, or trap, or portion
human, marine, and coastal environ- thereof, that lies within three nautical
ments, and may develop measures to miles of the State’s boundary.
mitigate adverse impacts, including
lease stipulations, for the options to be § 556.304 How is a proposed notice of
analyzed. The Director may hold public sale prepared?
hearings on the environmental analysis (a) The Director will, in consultation
after an appropriate notice. with appropriate Federal agencies, de-
(c) BOEM will seek to inform the velop measures, including lease stipu-
public, as soon as possible, of changes lations and conditions, to mitigate ad-
from the area(s) proposed for leasing verse impacts on the environment,
that occur after the Call process. which will be contained, or referenced,
(d) Upon request, the Director will in the proposed notice of sale.
provide relative indications of interest (b) A proposed notice of sale will be
in areas, as well as any comments filed submitted to the Secretary for ap-
in response to a Call for a proposed proval. All comments and rec-
sale. However, no information trans- ommendations received and the Direc-
mitted will identify any particular tor’s findings or actions thereon, will
area with the name of any particular also be forwarded to the Secretary.
party so as not to compromise the (c) Upon approval by the Secretary,
competitive position of any partici- BOEM will send a proposed notice of
pants in the process of indicating inter- sale to the governors of affected States
est. and publish the notice of its avail-
(e) For supplemental sales provided ability in the FEDERAL REGISTER. The
for by § 556.308, the Director’s rec- proposed notice of sale references or
ommendation will be replaced by a provides a link to the lease form, and
statement describing the results of the contains a description of the area pro-
Director’s consideration of the factors posed for leasing, the proposed lease
specified above in this section. terms and conditions of sale, and pro-
posed stipulations to mitigate poten-

tial adverse impacts on the environ-
ment.
461
§ 556.305 30 CFR Ch. V (7–1–18 Edition)
§ 556.305 How does BOEM coordinate governor of the coastal State may
and consult with States regarding a enter into an agreement for the equi-
proposed notice of sale? table disposition of the revenues from
(a) Within 60 days after receiving the production of any common potentially
proposed notice of sale, governors of af- hydrocarbon-bearing area, pursuant to
fected States may submit comments OCSLA section 8(g)(3) (43 U.S.C.
and recommendations to BOEM regard- 1337(g)(3)). Any revenues received by
ing the size, timing, and location of the the United States under such an agree-
proposed sale. Local governments may ment are subject to the requirements
comment to BOEM directly, but must of OSCLA section 8(g)(2) (43 U.S.C.
also send their comments to the gov- 1337(g)(2)).
ernor of their State. (e) If the Director and the governor
(b) BOEM will provide a consistency do not enter into an agreement under
determination under the Coastal Zone paragraph (d) of this section within 90
Management Act (CZMA) (16 U.S.C. days, BOEM may nevertheless proceed
1456) to each State with an approved with the leasing of the tracts, in which
coastal zone management program case all revenues will be deposited in a
that will determine whether the pro- separate account in the Treasury of the
posed sale is consistent, to the max- United States, pending disposition of
imum extent practicable, with the en- 27% (twenty-seven percent) of the reve-
forceable policies of the State’s ap- nues to the relevant coastal state(s),
proved coastal zone management pro- pursuant to the requirements of
gram. OCSLA section 8(g)(2). (43 U.S.C.
1337(g)(2)).
§ 556.306 What if a potentially oil- or
gas-bearing area underlies both the § 556.307 What does BOEM do with
OCS and lands subject to State ju- comments and recommendations re-
risdiction? ceived on the proposed notice of
sale?
(a) Whenever the Director or the gov-
ernor of a coastal State determines (a) BOEM will consider all comments
that a common potentially hydro- and recommendations received in re-
carbon-bearing area may underlie the sponse to the proposed notice of sale.
Federal OCS and State submerged (b) If the Secretary determines, after
lands, the Director or the governor will providing opportunity for consultation,
notify the other party in writing of the that a governor’s comments, and those
determination. of any affected local government, pro-
(b) Thereafter the Director will provide a reasonable balance between the
vide to the governor of the coastal national interest and the well-being of
State, subject to the confidentiality re- the citizens of the State, the Secretary
quirements in this chapter: will accept the recommendations of a
(1) An identification of the areas pro- State and/or local government(s). Any
posed for leasing and a schedule for, such determination of the national in-
leasing; and terest will be based on the findings,
(2) An estimate of the oil and gas re- purposes and policies of the Act set
sources. forth in 43 U.S.C. 1332 and 43 U.S.C.
(c) At the request of the governor of 1801.
the coastal State, the Director will (c) BOEM will send to each governor
provide to such governor, subject to written reasons for its determination
the confidentiality requirements in to accept or reject each governor’s rec-
this chapter: ommendation, and/or to implement any
(1) All geographical, geological, and alternative means to provide for a rea-
ecological characteristics of the areas sonable balance between the national
proposed for leasing; and interest and the interests of the citi-
(2) An identification of any field, geo- zens of the State.
logical structure, or trap that lies
within 3 miles of the State’s seaward § 556.308 How does BOEM conduct a
boundary. lease sale?

(d) If BOEM intends to lease such (a) BOEM publishes a final notice of
blocks or tracts, the Director and the sale in the FEDERAL REGISTER and in
462
other publications, as appropriate, at Subpart D—Qualifications

least 30 days before the date of the
sale. The final notice: § 556.400 When must I demonstrate
(1) States the place, time, and meth- that I am qualified to hold a lease
od for filing bids and the place, date, on the OCS?
and hour for opening bids; and In order to bid on, own, hold, or oper-
(2) Contains or references a descrip- ate a lease on the OCS, bidders, record
tion of the areas offered for lease, the title holders, and operating rights own-
lease terms and conditions of sale, and ers must first obtain a qualification
stipulations to mitigate potential ad- number from BOEM.
verse impacts on the environment.
§ 556.401 What do I need to show to be-
(b) Oil and gas tracts are offered for come qualified to hold a lease on
lease by competitive sealed bid in ac- the OCS and obtain a qualification
cordance with the terms and conditions number?
in the final notice of sale and applica-
(a) You may become qualified to hold
ble laws and regulations. a lease on the OCS and obtain a quali-
(c) Unless BOEM finds that a larger fication number in accordance with
area is necessary for reasonable eco- § 556.402, if you submit evidence dem-
nomic production, no individual tract onstrating that you are:
for oil and gas leasing will exceed 5,760 (1) A natural person who is a citizen
acres in area. If BOEM finds that an or national of the United States;
area larger than 5,760 acres is nec- (2) A natural person who is an alien
essary in any particular area, the size lawfully admitted for permanent resi-
of any such tract will be specified in dence in the United States, as defined
the final notice of sale. in 8 U.S.C. 1101(a)(20);
(d) The final notice of sale references, (3) A private, public, or municipal
or provides a link to, the OCS lease corporation or Limited Liability Com-
form which will be issued to successful pany or Limited Liability Corporation
bidders. (either/both sometimes herein referred
to as ‘‘LLC’’) organized under the laws
§ 556.309 Does BOEM offer blocks in a of any State of the United States, the
sale that is not on the Five Year District of Columbia, or any territory
program schedule (called a Supple- or insular possession subject to United
mental Sale)? States jurisdiction;
(a) Except as provided in paragraph (4) An association of such citizens,
(c) of this section, BOEM may offer a nationals, resident aliens, or corpora-
block within a planning area included tions;
in the Five Year program in an other- (5) A State, the District of Columbia,
wise unscheduled sale, if the block: or any territory or insular possession
(1) Received a bid that was rejected subject to United States jurisdiction;
in an earlier sale; (6) A political subdivision of a State,
(2) Had a high bid that was forfeited the District of Columbia, or any terri-
in a scheduled sale; or tory or insular possession subject to
(3) Is a development block subject to United States jurisdiction; or
drainage. (7) A Trust organized under the laws
(b) For an unscheduled sale, BOEM of any State of the United States, the
may disclose the classification of the District of Columbia, or any territory
or insular possession subject to United
block as a development block.
States jurisdiction;
(c) Blocks in the Central or Western
(b) Statements and evidence sub-
Gulf of Mexico Planning Areas cannot
mitted to demonstrate qualification
be offered in a sale that is not on the under paragraphs (a)(1) through (6) of
schedule. this section are subject to the penalties
of 18 U.S.C. 1001.
(b) BOEM may issue you a qualifica-

tion number after you have provided
evidence acceptable to BOEM.
463
§ 556.402 30 CFR Ch. V (7–1–18 Edition)
§ 556.402 How do I make the necessary (ii) Evidence of authority of holders

showing to qualify and obtain a of positions entitled to bind the cor-
qualification number? poration, certified by Secretary of the
(a) If BOEM has already issued you a corporation, over corporate seal, such
qualification number, you may present as:
that number to BOEM. If not, in order (A) Certified copy of resolution of the
to become qualified, you must provide board of directors with titles of officers
the information in paragraph (b) or (c) authorized to bind corporation;
of this section before BOEM will issue (B) Certified copy of resolutions
you a BOEM qualification number. granting corporate officer authority to
(b) A natural person must be a cit- issue a power of attorney; or
izen or national of the United States, (C) Certified copy of power of attor-
or a resident alien, to qualify. A United ney or certified copy of resolution
States citizen or national must submit granting power of attorney.
written evidence acceptable to BOEM (2) For a Limited or General Partner-
attesting to United States citizenship ship,
or national status. A resident alien (i) A statement by an authorized
must submit an original or a photo- party certifying that the partnership is
copy of the United States Citizenship authorized to hold OCS leases;
and Immigration Services form evi- (ii) A copy of your signed partnership
dencing legal status as a resident alien. formation documents, including a part-
(c) A person who is not a natural per- nership agreement;
son must submit evidence (refer to (iii) A statement from each partner
paragraph (d) of this section) accept- indicating, as appropriate, U.S. citizen-
able to BOEM that: ship or incorporation or organization
(1) It is authorized to conduct busi- under the laws of a State, the District
ness under the laws of a State, the Dis- of Columbia, or any territory or insu-
trict of Columbia, or any territory or lar possession subject to U.S. jurisdic-
insular possession subject to United tion; and
States jurisdiction under which it is (iv) Documentation evidencing the
organized; existence of the partnership and that it
(2) Under the operating rules of its was properly created, either from the
business, it is authorized to hold OCS Secretary of State of the State in
leases; and which the partnership is registered or
(3) Includes an up-to-date list of per- by an equivalent State or govern-
sons, and their titles, who are author- mental office.
ized to bind the corporation, associa- (3) For a Limited Liability Company
tion or other entity when conducting or Limited Liability Corporation,
business on the OCS. It is up to you, in (i) A certificate of formation of the
accordance with your organizational LLC;
structure or rules, to identify the indi- (ii) A statement by an individual au-
vidual, or group of individuals, who has thorized to bind the LLC, as listed
actual authority to bind your organiza- under (c)(4) above, certifying that the
tion, and the title(s) they will use when LLC is authorized to hold OCS leases;
they sign documents to bind the orga- (iii) A statement from each member
nization. You must maintain and regu- indicating, as appropriate, U.S. citizen-
larly update the information as to who ship, or incorporation or organization
has the authority to bind the organiza- under the laws of a State, the District
tion whenever that information of Columbia, or any territory or insu-
changes. lar possession subject to U.S. jurisdic-
(d) Acceptable evidence under para- tion; and
graph (c) of this section includes, but is (iv) Evidence of authority of holders
not limited to: of positions entitled to bind the LLC,
(1) For a corporation, certified by an individual authorized to
(i) A statement by the Secretary of bind the LLC.
the corporation, over corporate seal, (4) For a Trust,

certifying that the corporation is au- (i) A copy of the trust agreement or
thorized to hold OCS leases; and document establishing the trust and all
464
amendments, properly certified by the tion 8(d) of OCSLA (43 U.S.C. 1337(d))
trustee; and on any OCS lease; or
(ii) A statement indicating the law (c) BOEM disqualifies you from ac-
under which the trust is established quiring a lease or an interest in a lease
and that the trust is authorized to hold on the OCS based on your unacceptable
OCS leases. operating performance. BOEM will give
(e) In the event that a person may be you adequate notice and opportunity
eligible to hold OCS leases, but that for a hearing before imposing a dis-
type of person is not listed in para- qualification, unless BSEE has already
graphs (c) or (d) of this section, evi- provided such notice and opportunity
dence of such eligibility will be sub- for a hearing.
mitted and certified by the highest
level of management of the person au- [81 FR 34275, May 31, 2016]
thorized to do so pursuant to its oper-
ating agreement or governance docu- § 556.404 What do the non-procure-
ment debarment rules require that
ments. I do?
(f) Any person who obtains a quali-
fication number from BOEM is respon- You must comply with the Depart-
sible to ensure that it is not using the ment’s non-procurement debarment
qualification number approved by regulations at 2 CFR parts 180 and 1400.
BOEM for any purpose that its oper- (a) You must notify BOEM if you
ating rules do not allow. know that you or your principals are
(g) Any evidence submitted in re- excluded, disqualified, have been con-
sponse to paragraphs (c), (d), or (e) of victed or are indicted of a crime as de-
this section is submitted subject to 18 scribed in 2 CFR part 180, subpart C.
U.S.C. 1001. You must make this notification before
(h) A person may not hold leases on you sign a lease, sublease, or an assign-
the OCS until the evidence requested in ment of record title interest or oper-
this section has been accepted and ap- ating rights interest, or become a lease
proved by BOEM and BOEM has issued or unit operator. This paragraph does
a qualification number to that person. not apply if you have previously pro-
(i) If use of a corporate seal is re- vided a statement disclosing this infor-
quired by this section, you may meet mation, and you have received an ex-
the requirement as specified in § 556.107. ception from the Department, as de-
scribed in 2 CFR 180.135 and 2 CFR
§ 556.403 Under what circumstances 1400.137.
may I be disqualified from acquir- (b) If you wish to enter into a covered
ing a lease or an interest in a lease
on the OCS? transaction with another person at a
lower tier, as described in 2 CFR
You may be disqualified from acquir- 180.200, you must first:
ing a lease or an interest in a lease on (1) Verify that the person is not ex-
the OCS if: cluded or disqualified under 2 CFR part
(a) You or your principals are ex- 180; and
cluded or disqualified from partici- (2) Require the person to:
pating in a transaction covered by Fed-
(i) Comply with 2 CFR part 180, sub-
eral non-procurement debarment and
part C; and
suspension (2 CFR parts 180 and 1400),
unless the Department explicitly ap- (ii) Include the obligation to comply
proves an exception for a transaction with 2 CFR part 180, subpart C in its
pursuant to the regulations in those contracts and other transactions.
parts; (c) After you enter into a covered
(b) The Secretary finds, after notice transaction, you must immediately no-
and hearing, that you or your prin- tify BOEM in writing if you learn that:
cipals (including in the meaning of (1) You failed to disclose pertinent
‘‘you,’’ for purposes of this subpara- information earlier; or
graph, a bidder or prospective bidder) (2) Due to changed circumstances,

fail to meet due diligence requirements you or your principals now meet any of
or to exercise due diligence under sec- the criteria in 2 CFR 180.800.
465
§ 556.405 30 CFR Ch. V (7–1–18 Edition)
§ 556.405 When must I notify BOEM of all data and information (including
mergers, name changes, or changes processed, analyzed, and interpreted in-
of business form? formation) obtained from that activity
You must notify BOEM of any merg- and must provide copies of that data
er, name change, or change of business and information as the Secretary may
form as soon as practicable, but in no request.
case later than one year after the ear- (a) As part of the lease sale process,
lier of the effective date or the date of every bidder submitting a bid on a
filing the change or action with the tract, or participating as a joint bidder
Secretary of State or other authorized in such a bid, may at the time of bid be
official in the State of original reg- required to submit various informa-
istry. tion, including a Geophysical Data and
Information Statement (GDIS) cor-
Subpart E—Issuance of a Lease responding to that tract, as well as the
bidder’s exclusive/proprietary geo-
HOW TO BID physical data in order for BOEM to
properly evaluate the bid. If a GDIS re-
§ 556.500 Once qualified, how do I sub- quired, each GDIS must include, as re-
mit a bid?
quired by § 551.12(b) and (c) of this chap-
(a) You must submit a separate ter:
sealed bid for each tract or bidding (1) A list of geophysical surveys or
unit to the address provided and by the other information used as part of the
time specified in the final notice of decision to bid or participate in a bid
sale. You may not bid on less than an on the block.
entire tract or bidding unit. (2) An accurate and complete record
(b) BOEM requires a deposit for each of each geophysical survey conducted,
bid. The final notice of sale will specify including digital navigational data and
the amount and method of payment. final location maps. The bidder and
(c) Unless otherwise specified in the
any joint bidder must include a map
final notice of sale, the bid deposit
for each survey identified in the GDIS
amount will be 20 percent of the
that illustrates the actual areal extent
amount of the bid for any given tract
of the proprietary geophysical data.
or bidding unit.
(d) You may not submit a bid on an (b) If a bidder is required to submit a
OCS tract if, after notice and hearing GDIS, the GDIS must be submitted
under section 8(d) of OCSLA (43 U.S.C. even if the bidder did not rely on pro-
1337(d)), the Secretary finds that you prietary geophysical data and informa-
are not meeting the diligence require- tion in deciding to bid or participate as
ments on any OCS lease. a joint bidder in the bid for any par-
(e) If the authorized officer within ticular block, and must include entries
BOEM rejects your high bid, the deci- for all such blocks.
sion is final for the Department, sub- (c) The bidder must submit each
ject only to reconsideration upon your GDIS in a separate and sealed enve-
written request as set out in § 556.517. lope, or in an electronically readable
spreadsheet format, with proprietary
§ 556.501 What information do I need seismic data maps also available in an
to submit with my bid? electronic format. Each bidder must
In accordance with OCSLA section submit the GDIS even if its joint bid-
18(a)(4) (43 U.S.C. 1344(a)(4)), BOEM der or bidders on a specific block also
must evaluate every bid to ensure that have submitted a GDIS.
the federal government receives fair (d) If BOEM requires additional infor-
market value for every lease. Section mation related to bidding, it will de-
26(a)(1)(A) of OCSLA (43 U.S.C. scribe the additional information re-
1352(a)(1)(A)) provides that, in accord- quirements in the final notice of sale.
ance with regulations prescribed by the (e) BOEM will reimburse bidders for
Secretary, any lessee or permittee con- the costs of complying with the re-
ducting any exploration for, or devel- quirements of this section, in accord-

opment or production of, oil or gas ance with § 550.196 (on lease) and/or
must provide the Secretary access to § 551.13 (off lease) of this chapter.
466
(f) Bids that are not made in compli- or other conveyance of any potential
ance with this section will be consid- lease interest to two or more persons
ered incomplete and invalid. in different groups on the list of re-
stricted joint bidders.
RESTRICTIONS ON JOINT BIDDING (f) As a bidder, you are prohibited
from unlawful combination with, or in-
§ 556.511 Are there restrictions on bid-
ding with others and do those re- timidation of, bidders under 18 U.S.C.
strictions affect my ability to bid? 1860.
The Energy Policy and Conservation § 556.512 What bids may be disquali-
Act of 1975, 42 U.S.C. 6213, prohibits fied?
joint bidding by major oil and gas pro-
The following bids for any oil and gas
ducers under certain circumstances.
lease will be disqualified and rejected
BOEM implements 42 U.S.C. 6213 as fol-
in their entirety:
lows:
(a) A joint bid submitted by two or
(a) BOEM publishes twice yearly in
more persons who are on the effective
the FEDERAL REGISTER a restricted
List of Restricted Joint Bidders; or
joint bidders list. A person appearing
(b) A joint bid submitted by two or
on this list is limited in its ability to
submit a joint bid. The list: more persons when:
(1) Consists of the persons chargeable (1) One or more of those persons is
with an average worldwide daily pro- chargeable for the prior production pe-
duction in excess of 1.6 million barrels riod with an average daily production
of crude oil and/or its equivalent in in excess of 1.6 million barrels of crude
natural gas liquids and natural gas for oil, natural gas and natural gas liquids
the prior production period; and and has not filed a Statement of Pro-
(2) Is based upon the statement of duction, as required by § 556.513 of this
production that filed as required by part for the applicable 6-month bidding
§ 556.513. period, or
(b) If BOEM places you on the re- (2) Any of those persons have failed
stricted joint bidders list, BOEM will or refused to file a detailed report of
send you a copy of the order placing production when required to do so
you on the list. You may appeal this under § 556.513, or
order to the Interior Board of Land Ap- (c) A single or joint bid submitted
peals under 30 CFR part 590, subpart A. pursuant to an agreement (whether
(c) If you are listed in the FEDERAL written or oral, formal or informal, en-
REGISTER in any group of restricted tered into or arranged prior to or si-
bidders, you may not bid: multaneously with the submission of
(1) Jointly with another person in such single or joint bid, or prior to or
any other group of restricted bidders simultaneously with the award of the
for the applicable 6-month bidding pe- bid upon the tract) that provides:
riod; or (1) For the assignment, transfer, sale,
(2) Separately during the 6-month or other conveyance of less than a 100
bidding period if you have an agree- percent interest in the entire tract on
ment with another restricted bidder which the bid is submitted, by a person
that will result in joint ownership in or persons on the List of Restricted
an OCS lease. Joint Bidders, effective on the date of
(d) If you are listed in the FEDERAL submission of the bid, to another per-
REGISTER in any group of restricted son or persons on the same List of Re-
bidders, you may not make any pre- stricted Joint Bidders; or
bidding agreement for the conveyance (2) For the assignment, sale, transfer
of any potential lease interest, whether or other conveyance of less than a 100
by assignment, sale, transfer, or other percent interest in any fractional in-
means, to any person on the list of re- terest in the entire tract (which frac-
stricted joint bidders. tional interest was originally acquired
(e) Even if you are not listed in the by the person making the assignment,
FEDERAL REGISTER in any group of re- sale, transfer or other conveyance,
stricted bidders, you are prohibited under the provisions of the act) by a
from making any pre-bidding agree- person or persons on the List of Re-
ment for the assignment, sale, transfer, stricted Joint Bidders, effective on the
467
§ 556.513 30 CFR Ch. V (7–1–18 Edition)
date of submission of the bid, to an- (d) If you are required to file a state-
other person or persons on the same ment of production, BOEM may require
List of Restricted Joint Bidders; or you to submit a detailed report of pro-
(3) For the assignment, sale, transfer, duction.
or other conveyance of any interest in (1) The detailed report of production
a tract by a person or persons not on must list crude oil, natural gas liquids,
the List of Restricted Joint Bidders, ef- and natural gas produced worldwide
fective on the date of submission of the from reservoirs during the prior pro-
bid, to two or more persons on the duction period, and therefore charge-
same List of Restricted Joint Bidders; able to the prior production period.
or (i) The amount of crude oil charge-
(4) For any of the types of convey- able to the prior production period will
ances described in paragraphs (c)(1), be established by measurement of vol-
(2), or (3) of this section where any umes delivered at the point of custody
party to the conveyance is chargeable transfer (e.g., from storage tanks to
for the prior production period with an pipelines, trucks, tankers, or other
average daily production in excess of media for transport to refineries or ter-
1.6 million barrels of crude oil, natural minals), with adjustments for net dif-
gas and natural gas liquids and has not ferences between opening and closing
filed a Statement of Production pursu- inventories, and basic sediment and
ant to § 556.513 for the applicable six- water.
month bidding period. Assignments ex- (ii) The amount of natural gas liquids
pressly required by law, regulation, chargeable to the prior production pe-
lease or lease stipulation will not dis- riod must include gas liquefied at sur-
qualify an otherwise qualified bid; or face separators, field facilities, or gas
(d) A bid submitted by or in conjunc- processing plants.
tion with a person who has filed a false, (iii) The amount of natural gas
fraudulent or otherwise intentionally chargeable to the prior production pe-
false or misleading detailed Report of riod must include adjustments, where
Production. applicable, to reflect the volume of gas
returned to natural reservoirs, and the
§ 556.513 When must I file a statement
of production? reduction of volume resulting from the
removal of natural gas liquids and non-
(a) You must file a statement of pro- hydrocarbon gases.
duction if your average worldwide (2) You must submit the detailed re-
daily production exceeded 1.6 million port of production within 30 days after
barrels for the prior production period, receiving BOEM’s request.
as determined using the method set (3) BOEM may inspect and copy any
forth in § 556.514. Your statement of document, record of production, anal-
production must specify that you were ysis, and other material to verify the
chargeable with an average daily pro- accuracy of any earlier statement of
duction in excess of 1.6 million barrels production.
for the prior production period.
(e) If you submit a statement of pro-
(b) The prior production periods are duction that misrepresents your
as follows: chargeable production, the Department
The prior production period is may cancel any lease awarded in reli-
For the bidding period of the ance upon the statement.
preceding
(1) May through October ....... July through December. § 556.514 How do I determine my pro-
(2) November through April ... January through June. duction for purposes of the re-
stricted joint bidders list?
(c) You must file the statement of (a) To determine the amount of pro-
production by the following deadlines: duction chargeable to you, add to-
gether:
You must file the statement
For the bidding period of (1) Your average daily production in
by
barrels of crude oil, natural gas liquids,
(1) May through October ....... March 17.
and natural gas worldwide, all meas-
(2) November through April ... September 17.
ured at 60 °F, using the equivalency or
468
conversion factors for natural gas liq- BOEM determines that the extremely
uids and natural gas set out in 42 high costs in an area will preclude ex-
U.S.C. 6213(b)(2) and (3); and ploration and development without an
(2) Your proportionate share of the exemption.
average daily production owned by any
person that has an interest in you and/ HOW DOES BOEM ACT ON BIDS?
or in which you have an interest.
(b) For the purpose of paragraph § 556.516 What does BOEM do with my
(a)(1) of this section, your production bid?
includes 100 percent of production (a) BOEM opens the sealed bids at the
owned by: place, date, and hour specified in the
(1) You; final notice of sale for the sole purpose
(2) Every subsidiary of yours; of publicly announcing and recording
(3) Every person of which you are a the bids. BOEM does not accept or re-
subsidiary; and ject any bids at that time.
(4) Every subsidiary of any person of (b) BOEM reserves the right to reject
which you are a subsidiary. any and all bids received, regardless of
(c) For purposes of paragraph (a)(2) of the amount offered. BOEM accepts or
this section, interest means at least a rejects all bids within 90 days of open-
five percent ownership or control of ing. BOEM reserves the right to extend
you or the reporting person and in- that time if necessary, and in that
cludes any interest: event, BOEM will notify bidder(s) in
(1) From ownership of securities or writing prior to the expiration of the
other evidence of ownership; or, initial 90-day period, or of any exten-
(2) By participation in any contract, sion. Any bid not accepted within the
agreement, or understanding regarding prescribed 90-day period, or any exten-
control of the person or their produc- sion thereof, will be deemed rejected. If
tion of crude oil, natural gas liquids, or your bid is rejected, BOEM will refund
natural gas. any money deposited with your bid,
(d) For purposes of this section, sub- plus any interest accrued.
sidiary means a person, 50 percent or
(c) If the highest bids are a tie,
more of whose stock or other interest
BOEM will notify the bidders who sub-
having power to vote for the election of
mitted the tie bids. Within 15 days
a controlling body, such as directors or
after notification, those bidders, if
trustees, is directly or indirectly
qualified, and not otherwise prohibited
owned or controlled by another person.
from bidding together, may:
(e) For purposes of this section, pro-
(1) Agree to accept the lease jointly.
duction chargeable to you includes, but
The bidders must notify BOEM of their
is not limited to, production obtained
decision and submit a copy of their
as a result of a production payment or
agreement to accept the lease jointly.
a working, net profit, royalty, over-
riding royalty, or carried interest. (2) Agree between/among themselves
(f) For purposes of this section, pro- which bidder will accept the lease. The
duction must be measured with appro- bidders must notify BOEM of their de-
priate adjustments for: cision.
(1) Basic sediment and water; (d) If no agreement is submitted pur-
(2) Removal of natural gas liquids suant to paragraph (c) of this section,
and non-hydrocarbon gases; and BOEM will reject all the tie bids.
(3) Volume of gas returned to natural (e) The Attorney General, in con-
reservoirs. sultation with the Federal Trade Com-
mission, has 30 days to review the re-
§ 556.515 May a person be exempted sults of the lease sale before BOEM
from joint bidding restrictions? may accept the bid(s) and issue the
BOEM may exempt you from some or lease(s).
all of the reporting requirements listed
in § 556.513, and/or some or all of the § 556.517 What may I do if my high bid
joint bidding restrictions listed in is rejected?

§§ 556.511 and/or 556.512(a), (b), and/or (a) The decision of the authorized of-
(c), if, after opportunity for a hearing, ficer on bids is the final action of the
469
§ 556.520 30 CFR Ch. V (7–1–18 Edition)
Department, subject only to reconsid- (d) If you use an agent to execute the
eration of the rejection of the high bid lease, you must include evidence with
by the Director, in accordance with the executed copies of the lease that a
paragraph (b) of this section. person who is on the list of persons ref-
(b) Within 15 days of bid rejection, erenced in § 556.402(c)(3) authorized the
you may file a written request for re- agent to act for you.
consideration with the Director, with a (e) After you comply with all require-
copy to the authorized officer. Such re- ments in this section, and after BOEM
quest must provide evidence as to why has executed the lease, BOEM will send
the Director should reconsider your you a fully executed lease.
bid. You will receive a written response
either affirming or reversing the rejec- § 556.521 When is my lease effective?
tion of your bid. Your lease is effective on the first
(c) The Director’s decision on the re- day of the month following the date
quest for reconsideration is not subject that BOEM executes the lease. You
to appeal to the Interior Board of Land may request in writing, before BOEM
Appeals in the Department’s Office of executes the lease, that your lease be
Hearings and Appeals. effective as of the first day of the
month in which BOEM executes the
AWARDING THE LEASE
lease. If BOEM agrees to make the
§ 556.520 What happens if I am the suc- lease effective as of the earlier date,
cessful high bidder and BOEM ac- BOEM will so indicate when it executes
cepts my bid? the lease.
(a) If BOEM accepts your bid, BOEM § 556.522 What are the terms and con-
will provide you with the appropriate ditions of the lease and when are
number of copies of the lease for you to they published?
execute and return to BOEM. Within 11
The terms and conditions of the lease
business days after you receive the
will be stated in the final notice of sale
lease copies, you must:
and contained in the lease instrument
(1) Execute all copies of the lease;
itself. Oil and gas leases and leases for
(2) Pay the first year’s rental;
sulfur will be issued on forms approved
(3) Pay the balance of the bonus bid, by the Director.
unless deferred under paragraph (b)
below;
(4) Comply with subpart I of this Subpart F—Lease Term and
part; and, Obligations
(5) Return all copies of the executed
lease, including any required bond or LENGTH OF LEASE
other form of security approved by the
§ 556.600 What is the primary term of
Regional Director, to BOEM. my oil and gas lease?
(b) If provided for in the final notice
of sale, BOEM may defer any part of (a) The primary term of an oil and
the bonus and bid payment for up to gas lease will be five years, unless
five years after the sale according to a BOEM determines that:
schedule included in the final notice of (1) The lease is located in unusually
sale. You must provide a bond accept- deep water or involves other unusually
able to BOEM to guarantee payment of adverse conditions; and,
a deferred bonus bid. (2) A lease term longer than five
(c) If you do not make the required years is necessary to explore and de-
payments and execute and return all velop the lease.
copies of the lease and any required (b) If BOEM determines that the cri-
bond within 11 business days after re- teria in paragraphs (a)(1) and (2) of this
ceipt, or if you otherwise fail to com- section are met, it may specify a
ply with applicable regulations, your longer primary term, not to exceed 10
deposit will be forfeited. However, years.
BOEM will return any deposit with in- (c) BOEM will specify the primary
terest if the tract is withdrawn from term in the final notice of sale and in
leasing before you execute the lease. the lease instrument.
470
(d) The lease will expire at the end of pension directed by BSEE for reasons
the primary term, unless maintained other than gross negligence or a willful
beyond that term in accordance with violation of a provision of your lease or
the provisions of § 556.601. governing regulations.
§ 556.601 How may I maintain my oil LEASE OBLIGATIONS
and gas lease beyond the primary
term? § 556.604 What are my rights and obli-
You may maintain your oil and gas gations as a record title owner?
lease beyond the expiration of the pri- (a) As a record title owner, you are
mary term as long as: responsible for all administrative and
(a) You are producing oil or gas in operating performance on the lease, in-
paying quantities; cluding paying any rent and royalty
(b) You are conducting approved due.
drilling or well reworking operations (b)(1) A record title owner owns oper-
with the objective of establishing pro- ating rights to the lease, unless and
duction in paying quantities, in accord- until he or she severs the operating
ance with 30 CFR 250.180; rights by subleasing them to someone
(c) You are producing from, or drill- else.
ing or reworking, an approved well ad-
(2) A sublease of operating rights
jacent to or adjoining your lease that
from record title may be for a whole or
extends directionally into your lease in
undivided fractional interest in the en-
accordance with 30 CFR 256.71;
tire lease or a described aliquot portion
(d) You make compensatory pay-
of the lease and/or a depth interval.
ments on your lease in accordance with
The sublease creates an operating
30 CFR 256.72;
rights interest in the sublessee, herein
(e) Your lease is included in a BSEE-
referred to as the operating rights
approved unit, in accordance with 30
owner.
CFR part 250, subpart M; or
(f) Your lease is subject to a suspen- (c) Within any given aliquot, the
sion of production or a suspension of record title owner may sublease oper-
operations, in accordance with 30 CFR ating rights for up to a maximum of
250.168 through 250.180, for reasons two depth divisions, which may result
other than gross negligence or a willful in a maximum of three different depth
violation of a provision of your lease or intervals. But, if the one, or two, depth
any governing regulations. divisions to which operating rights are
subleased do not include the entire
§ 556.602 What is the primary term of depth of the lease, whatever depth divi-
my sulfur lease? sion(s) has not been subleased, remains
(a) Your sulfur lease will have a pri- part of the lessee/sublessor’s record
mary term of not more than 10 years, title interest. The depth intervals for
as specified in the lease. which operating rights are subleased
(b) BOEM will announce the primary must be defined by a beginning and
term prior to the lease sale. ending depth and the ending of one
(c) The lease will expire at the end of depth level must abut the beginning of
the primary term unless maintained the next depth level, with no gap in be-
beyond that term in accordance with tween.
the provisions of § 556.603. (d) Every current and prior record
title owner is jointly and severally lia-
§ 556.603 How may I maintain my sul- ble, along with all other record title
fur lease beyond the primary term? owners and all prior and current oper-
You may maintain your sulfur lease ating rights owners, for compliance
after the primary term as long as you with all non-monetary terms and con-
are producing sulfur in paying quan- ditions of the lease and all regulations
tities, conducting drilling, well re- issued under OCSLA, as well as for ful-
working or plant construction, or other filling all non-monetary obligations,
operations for the production of sulfur including decommissioning obliga-

or you are granted a suspension by tions, which accrue while it holds
BSEE; or your lease is subject to a sus- record title interest.
471
§ 556.605 30 CFR Ch. V (7–1–18 Edition)
(e) Record title owners that acquired ating rights appertain and that accrue
their record title interests through as- during the period in which the oper-
signment from a prior record title ating rights owner owned the operating
owner are also responsible for rem- rights.
edying all existing environmental or (e) You are jointly and severally lia-
operational problems on any lease in ble with other operating rights owners
which they own record title interests, and the record title owners for all non-
with subrogation rights against prior monetary lease obligations pertaining
lessees. to that portion of the lease subject to
(f) For monetary obligations, your your operating rights, which accrued
obligation depends on the source of the during the time you held your oper-
monetary obligation and whether you ating rights interest.
have retained or severed your oper- (f) An operating rights owner that ac-
ating rights. quires its operating rights interests
(1) With respect to those operating through assignment from a prior oper-
rights that you have retained, you are ating rights owner is also responsible,
primarily liable under 30 U.S.C. 1712(a) with subrogation rights against prior
for your pro-rata share of all other operating rights owners, for remedying
monetary obligations pertaining to existing environmental or operational
that portion of the lease subject to the problems, to the extent that such prob-
operating rights you have retained, lems arise from that portion of the
based on your share of operating rights lease to which its operating rights ap-
in that portion of the lease. pertain, on any lease in which it owns
(2) With respect to all monetary obli- operating rights.
gations arising from or in connection (g) You are primarily liable for mon-
with those operating rights that have etary obligations pertaining to that
been severed from your record title in- portion of the lease subject to your op-
terest, your obligation is secondary to erating rights, and the record title
that of the sublessee(s) or later as- owners are secondarily liable. If there
signee(s) of the operating rights that is more than one operating rights
were severed from your record title in- owner in a lease, each operating rights
terest, as prescribed in 30 U.S.C. owner is primarily liable for its pro-
1712(a). rata share of the monetary obligations
that pertain to the portion of the lease
§ 556.605 What are my rights and obli- that is subject to its operating rights.
gations as an operating rights
owner? HELIUM
(a) As an operating rights owner, you § 556.606 What must a lessee do if
have the right to enter the leased area BOEM elects to extract helium from
to explore for, develop, and produce oil a lease?
and gas resources, except helium gas, (a) BOEM reserves the ownership of,
contained within the aliquot(s) and and the right to extract, helium from
depths within which you own operating all gas produced from your OCS lease.
rights, according to the lease terms, Under section 12(f) of OCSLA (43 U.S.C.
applicable regulations, and BOEM’s ap- 1341(f)), upon our request, you must de-
proval of the sublease or subsequent as- liver all or a specified portion of the
signment of the operating rights. gas containing helium to BOEM at a
(b) Unless otherwise prohibited, you point on the leased area or at an on-
have the right to authorize another shore processing facility that BOEM
party to conduct operations on the designates.
part of the lease to which your oper- (b) BOEM will determine reasonable
ating rights appertain. compensation and pay you for any loss
(c) An owner of operating rights who caused by the extraction of helium, ex-
is designating a new designated oper- cept for the value of the helium itself.
ator must file a designation of operator BOEM may erect, maintain, and oper-
under § 550.143 of this chapter. ate on your lease any reduction work
(d) An operating rights owner is only and other equipment necessary for he-
liable for obligations arising from that lium extraction. Our extraction of he-
portion of the lease to which its oper- lium will be conducted in a manner to
472
not cause substantial delays in the de- ator, in accordance with § 550.143 of this
livery of gas to your purchaser. chapter, along with the request for the
approval of the assignment.
Subpart G—Transferring All or Part § 556.702 When will my assignment re-
of the Record Title Interest in a sult in a segregated lease?
Lease (a) When there is an assignment by
§ 556.700 May I assign or sublease all all record title owners of 100 percent of
or any part of the record title inter- the record title to one or more aliquots
est in my lease? in a lease, the assigned and retained
portions become segregated into sepa-
(a) With BOEM approval, you may as-
rate and distinct leases. In such case,
sign your whole, or a partial record
both the new lease and the remaining
title interest in your entire lease, or in
portion of the original lease are re-
any aliquot(s) thereof.
ferred to as ‘‘segregated leases’’ and
(b) With BOEM approval, you may
the assignee(s) becomes the record title
sever all, or a portion of, your oper-
owner(s) of the new lease, which is sub-
ating rights.
ject to all the terms and conditions of
(c) You must request approval of
the original lease.
each assignment of a record title inter- (b) If a record title holder transfers
est and each sublease of an operating an undivided interest, i.e., less than 100
rights interest. Each instrument that percent of the record title interest in
transfers a record title interest must any given aliquot(s), that transfer will
describe, by aliquot parts, the interest not segregate the portions of the
you propose to transfer. Each instru- aliquots, or the whole aliquots, in
ment that severs an operating rights which part of the record title was
interest must describe, by officially transferred, into separate leases from
designated aliquot parts and depth lev- the portion(s) in which no interest was
els, the interest proposed to be trans- transferred. Instead, that transfer will
ferred. create a joint ownership between the
assignee(s) and assignor(s) in the por-
§ 556.701 How do I seek approval of an
assignment of the record title inter- tions of the lease in which part of the
est in my lease, or a severance of record title interest was transferred.
operating rights from that record Any transfer of an undivided interest is
title interest? subject to approval by BOEM.
(a) The Regional Director will pro- § 556.703 What is the effect of the ap-
vide the form to record an assignment proval of the assignment of 100 per-
of record title interest in a Federal cent of the record title in a par-
OCS oil and gas or sulfur lease, or a ticular aliquot(s) of my lease and of
severance of operating rights from that the resulting lease segregation?
record title interest. You must submit (a) The bonding/financial assurance
to BOEM two originals of each instru- requirements of subpart I of this part
ment that transfers ownership of apply separately to each segregated
record title within 90 days after the lease.
last party executes the transfer instru- (b) The royalty, minimum royalty,
ment. You must pay the service fee and rental provisions of the original
listed in § 556.106 with your request and lease will apply separately to each seg-
your submission must include evidence regated lease.
of payment via pay.gov. (c) BOEM will allocate among the
(b) Before BOEM approves an assign- segregated leases, on a basis that is eq-
ment or transfer, it must consult with, uitable under the circumstances, any
and consider the views of, the Attorney remaining unused royalty suspension
General. The Secretary may act on an volume or other form of royalty sus-
assignment or transfer if the Attorney pension or royalty relief that had been
General has not responded to a request granted to the original lease, not to ex-
for consultation within 30 days of said ceed in aggregate the total remaining
request. amount.
(c) A new record title owner or sub- (d) Each segregated lease will con-
lessee must file a designation of oper- tinue in full force and effect for the
473
§ 556.704 30 CFR Ch. V (7–1–18 Edition)
primary term of the original lease and (c) If the heir or devisee does not
so long thereafter as each segregated qualify to hold a lease under subpart D
lease meets the requirements outlined of this part, he/she will be recognized
in § 556.601. A segregated lease that as the successor in interest, but he/she
does not meet the requirements of must divest him/herself of this interest
§ 556.601 does not continue in force even in the lease, to a person qualified to be
if another segregated lease, which was a hold a lease, within two years.
part of the original lease, continues to
meet those requirements. § 556.706 What if I want to transfer
record title interests in more than
one lease at the same time, but to
§ 556.704 When would BOEM dis- different parties?
approve an assignment or sublease
of an interest in my lease? You may not transfer interests in
more than one lease to different parties
(a) BOEM may disapprove an assign- using the same instrument. If you want
ment or sublease of all or part of your to transfer the interest in more than
lease interest(s): one lease at the same time, you must
(1) When the transferor or transferee submit duplicate, originally executed
has unsatisfied obligations under this forms for each transfer. The forms used
chapter or 30 CFR chapters II or XII; for each transfer must be accompanied
(2) When a transferor attempts a by a cover letter executed by one of the
transfer that is not acceptable as to parties to the transfer (or an author-
form or content (e.g., not on standard ized agent thereof) and evidence of pay-
form, containing incorrect legal de- ment via pay.gov.
scription, not executed by a person au-
thorized to bind the corporation, trans- § 556.707 What if I want to transfer dif-
feree does not meet the requirements ferent types of lease interests (not
only record title interests) in the
of § 556.401, etc.); or, same lease to different parties?
(3) When the transfer does not con-
form to these regulations, or any other You may not transfer different types
applicable laws or regulations (e.g., de- of lease interests in a lease to different
partmental debarment rules). parties using the same instrument.
You must submit duplicate, originally
(b) A transfer will be void if it is
executed forms for each transfer, to a
made pursuant to any prelease agree-
different party, of a different type of
ment that would cause a bid to be dis-
lease interest. The form used to trans-
qualified, such as those described in fer each type of lease interest must be
§ 556.511(c), (d), or (e). accompanied by a cover letter executed
§ 556.705 How do I transfer the inter- by one of the parties to the transfer (or
est of a deceased natural person an authorized agent thereof) and evi-
who was a lessee? dence of payment via pay.gov.
(a) An heir or devisee must submit § 556.708 What if I want to transfer my
evidence by means of a certified copy record title interests in more than
of an appropriate court order or decree one lease to the same party?
that the person is deceased; or, if no You may not transfer your record
court action is necessary, a certified title interests in more than one lease
copy of the will and death certificate to the same party using the same in-
or notarized affidavits of two disin- strument. If you want to transfer
terested parties with knowledge of the record title interests in more than one
facts. lease at the same time, you must sub-
(b) The heir or devisee, if the lawful mit separate, originally executed forms
successor in interest, must submit evi- for each transfer. The forms used for
dence that he/she is the person named each transfer must be accompanied by
in the will or evidence from an appro- a cover letter executed by one of the
priate judgment of a court or decree parties to the transfer (or an author-
that he/she is the lawful successor in ized agent thereof), and evidence of
interest, along with the required evi- payment via pay.gov. A separate fee
dence of his/her qualifications to hold a applies to each individual transfer of
lease under subpart D of this part. interest.
474
§ 556.709 What if I want to transfer my the liability of the record title holder
record title interest in one lease to for nonmonetary obligations.
multiple parties? (c) Upon approval of the sublease of
You may transfer your record title the operating rights, the sublessee and
interest in one lease to multiple par- subsequent assignees of the operating
ties using the same instrument. That rights become primarily liable for
instrument must be submitted in dupli- monetary obligations, but the record
cate originals, accompanied by a cover title holder remains secondarily liable
letter executed by one of the parties to for them, as prescribed in 30 U.S.C.
the transfer (or an authorized agent 1712(a) and § 556.604(f)(2).
thereof). In such a multiple transfer of
interests using a single instrument, a § 556.712 What is the effective date of a
separate fee applies to each individual transfer?
transfer of interest, and evidence of Any transfer is effective at 12:01 a.m.
payment via pay.gov must accompany on the first day of the month following
the instrument. the date on which BOEM approves your
request, unless you request an earlier
§ 556.710 What is the effect of an as- effective date and BOEM approves that
signment of a lease on an assignor’s
liability under the lease? earlier date, but such earlier effective
date, if prior to the date of BOEM’s ap-
If you assign your record title inter- proval, does not relieve you of obliga-
est, as an assignor you remain liable tions accrued between that earlier ef-
for all obligations, monetary and non- fective date and the date of approval.
monetary, that accrued in connection
with your lease during the period in § 556.713 What is the effect of an as-
which you owned the record title inter- signment of a lease on an assignee’s
est, up to the date BOEM approves liability under the lease?
your assignment. BOEM’s approval of
As assignee, you and any subsequent
the assignment does not relieve you of
assignees are liable for all obligations
these accrued obligations. Even after
that accrue after the effective date of
assignment, BOEM or BSEE may re-
your assignment. As assignee, you
quire you to bring the lease into com-
must comply with all the terms and
pliance if your assignee or any subse-
conditions of the lease and regulations
quent assignee fails to perform any ob-
issued under OCSLA, and in addition,
ligation under the lease, to the extent
you must remedy all existing environ-
the obligation accrued before approval
mental and operational problems on
of your assignment. Until there is a
BOEM-approved assignment of inter- the lease, properly abandon all wells,
est, you, as the assignor, remain liable and reclaim the site, as required under
for the performance of all lease obliga- 30 CFR part 250.
tions that accrued while you held
§ 556.714 As a restricted joint bidder,
record title interest, until all such ob- may I transfer an interest to an-
ligations are fulfilled. other restricted joint bidder?
§ 556.711 What is the effect of a record (a) Where the proposed assignment or
title holder’s sublease of operating transfer is by a person who, at the time
rights on the record title holder’s li- of acquisition of an interest in the
ability? lease, was on the List of Restricted
(a) A record title holder who sub- Joint Bidders, and that assignment or
leases operating rights remains liable transfer is of less than the entire inter-
for all obligations of the lease, includ- est held by the assignor or transferor
ing those obligations accruing after and to a person or persons on the same
BOEM’s approval of the sublease, sub- List of Restricted Joint Bidders, the
ject to § 556.604(e) and (f). assignor or transferor must file, prior
(b) Neither the sublease of operating to the approval of the assignment, a
rights, nor subsequent assignment of copy of all agreements applicable to
those rights by the original sublessee, the acquisition of that lease or frac-
nor by any subsequent assignee of the tional interest, or a description of the
operating rights, alters in any manner timing and nature of the agreement(s)
475
§ 556.715 30 CFR Ch. V (7–1–18 Edition)
by which the assignor or transferor ac- are involved in the transaction, and no
quired the interest it now wishes to change of designated operator is made,
transfer. you will not need to submit a new des-
(b) Such description of the timing ignation of operator form.
and nature of the transfer agreement (b) In all cases other than that in
must be submitted together with a cer- paragraph (a) of this section, you must
tified statement that attests to the submit new designation of operator
truth and accuracy of any information forms in accordance with § 550.143 of
reported concerning that agreement, this chapter. In the event that you are
subject to the penalties of 18 U.S.C. transferring multiple record title in-
1001. terests, you must comply with this re-
(c) If you wish to transfer less than quirement for each interest that does
your entire interest to another re- not fall within paragraph (a) of this
stricted joint bidder, BOEM may re- section.
quest the opinion of the Attorney Gen-
eral before acting on your request.
(d) You may request that any sub- Subpart H—Transferring All or Part
mission to BOEM made pursuant to of the Operating Rights in a Lease
this part be treated confidentially.
Please note such a request on your sub- § 556.800 As an operating rights owner,
may I assign all or part of my oper-
mission. BOEM will treat this request ating rights interest?
for confidentiality in accordance with
the regulations at § 556.104 and the reg- An operating rights owner may as-
ulations at 43 CFR part 2. sign all or part of its operating rights
interests, subject to BOEM approval.
§ 556.715 Are there any interests I may Each instrument that transfers an in-
transfer or record without BOEM terest must describe, by officially des-
approval? ignated aliquot parts and depth levels,
(a) You may create, transfer, or as- the interest proposed to be transferred.
sign economic interests without BOEM
approval. However, for record purposes, § 556.801 How do I seek approval of an
you must send BOEM a copy of each in- assignment of my operating rights?
strument creating or transferring such (a) The Regional Director will pro-
interests within 90 days after the last vide the form to document the assign-
party executes the transfer instrument of an operating rights interest.
ment. For each lease affected, you You must request approval of each as-
must pay the service fee listed in signment of operating rights and sub-
§ 556.106 with your documents submit to BOEM two originals of each in-
mitted for record purposes and your strument that transfers ownership of
submission must include evidence of operating rights within 90 days after
payment via pay.gov. the last party executes the transfer in-
(b) For recordkeeping purposes, you strument. You must pay the service fee
may also submit other legal documents listed in § 556.106 with your request and
to BOEM for transactions that do not your submission must include evidence
require BOEM approval. If you submit of payment via pay.gov.
such documents for record purposes not
(b) A new operating rights owner
required by this part, you must pay the
must file a designation of operator, in
service fee listed in § 556.106 with your
accordance with § 550.143, along with
document submissions for each lease
affected. Your submission must include the request for the approval of the as-
evidence of payment via pay.gov. signment.
(c) If an operating rights owner as-
§ 556.716 What must I do with respect signs an undivided ownership interest
to the designation of operator on a in its operating rights, that assign-
lease when a transfer of record title ment creates a joint ownership in the
is submitted? operating rights.
(a) If a transfer of ownership of the (d) Before BOEM approves a sublease
record title interest only changes the or re-assignment of operating rights,

percentage ownership of the record BOEM may consult with and consider
title, no new parties or new aliquots the views of the Attorney General.
476
§ 556.802 When would BOEM dis- § 556.805 What is the effect of an oper-
approve the assignment of all or ating rights owner’s assignment of
part of my operating rights inter- operating rights on the assignor’s
est? liability?
BOEM may disapprove an assignment An operating rights owner (who does
of all or part of your operating rights not hold record title) who assigns the
interest: operating rights remains liable for all
(a) When the transferor or transferee obligations of the lease that accrued
has outstanding or unsatisfied obliga- during the period in which the assignor
tions under this chapter or 30 CFR owned the operating rights, up to the
chapter II or XII; effective date of the assignment, in-
(b) When a transferor attempts a cluding decommissioning obligations
transfer that is not acceptable as to that accrued during that period.
form or content (e.g., not on standard BOEM’s approval of the assignment
form, containing incorrect legal de- does not alter that liability. Even after
scription, not executed in accordance assignment, BOEM or BSEE may re-
with corporate governance, transferee quire the assignor to bring the lease
does not meet the requirements of into compliance if the assignee or any
§ 556.401, etc.); or subsequent assignee fails to perform
any obligation under the lease, to the
(c) When the transfer does not con-
extent the obligation accrued before
form to these regulations, or any other
approval of the assignment.
applicable laws or regulations (e.g., de-
partmental debarment rules). § 556.806 What is the effective date of
an assignment of operating rights?
§ 556.803 What if I want to assign oper-
ating rights interests in more than An assignment is effective at 12:01
one lease at the same time, but to a.m. on the first day of the month fol-
different parties? lowing the date on which BOEM ap-
proves your request, unless you request
You may not assign operating rights
an earlier effective date and BOEM ap-
interests in more than one lease to dif-
proves that earlier date. Such an ear-
ferent parties using the same instru-
lier effective date, if prior to the date
ment. If you want to transfer operating
of BOEM’s approval, does not relieve
rights interests in more than one lease
you of obligations accrued between
at the same time, you must submit two
that earlier effective date and the date
originally executed forms for each
of approval.
transfer. Each request for a transfer of
operating rights interest must be ac- § 556.807 What is the effect of an as-
companied by a cover letter executed signment of operating rights on an
by one of the parties to the transfer (or assignee’s liability?
an authorized agent thereof) and evi- As assignee, you and any subsequent
dence of payment via pay.gov. assignees are liable for all obligations
that accrue after the effective date of
§ 556.804 What if I want to assign my your assignment. As assignee, you
operating rights interest in a lease
to multiple parties? must comply with all the terms and
conditions of the lease and regulations
You may assign your operating issued under OCSLA. In addition, you
rights interest in one lease to multiple must remedy all existing environ-
parties using the same instrument. mental and operational problems on
That instrument must be submitted in the lease, properly abandon all wells,
duplicate originals, accompanied by a and reclaim the site, as required under
cover letter executed by one of the par- 30 CFR part 250.
ties to the transfer (or an authorized
agent thereof). In such a multiple § 556.808 As an operating rights owner,
transfer of interests using a single in- are there any interests I may assign
strument, a separate fee applies to without BOEM approval?
each individual transfer of interest and (a) You may create, transfer, or as-
evidence of payment via pay.gov must sign economic interests without BOEM
accompany the instrument. approval. However, for record purposes,
477
§ 556.809 30 CFR Ch. V (7–1–18 Edition)
you must send BOEM a copy of each in- another record title owner for the lease
strument creating or transferring such must:
interests within 90 days after the last (1) Maintain with the Regional Direc-
party executes the transfer instru- tor a $50,000 lease bond that guarantees
ment. For each lease affected, you compliance with all the terms and con-
must pay the service fee listed in ditions of the lease; or
§ 556.106 with your documents sub- (2) Maintain a $300,000 area-wide bond
mitted for record purposes, and your that guarantees compliance with all
submission must include evidence of the terms and conditions of all your oil
payment via pay.gov. and gas and sulfur leases in the area
(b) For record keeping purposes, you where the lease is located; or
may also submit other legal documents (3) Maintain a lease or area-wide
to BOEM for transactions that do not
bond in the amount required in
require BOEM approval. If you submit
§ 556.901(a) or (b).
such documents for record purposes
(b) For the purpose of this section,
that are not required by these regula-
tions, for each lease affected, you must there are three areas. The three areas
pay the service fee listed in § 556.106 are:
with your document submissions, and (1) The Gulf of Mexico and the area
your submission must include evidence offshore the Atlantic Coast;
of payment via pay.gov. (2) The area offshore the Pacific
Coast States of California, Oregon,
§ 556.809 [Reserved] Washington, and Hawaii; and
(3) The area offshore the Coast of
§ 556.810 What must I do with respect Alaska.
to the designation of operator on a
lease when a transfer of operating (c) The requirement to maintain a
rights ownership is submitted? lease bond (or substitute security in-
strument) under paragraph (a)(1) of
(a) If a transfer of ownership of oper- this section and § 556.901(a) and (b) may
ating rights only changes the percent- be satisfied if your operator or an oper-
age ownership; no new parties, new
ating rights owner provides a lease
aliquots, or new depths are involved in
bond in the required amount that guar-
the transaction; and no change of des-
antees compliance with all the terms
ignated operator is made, you will not
and conditions of the lease. Your oper-
need to submit a new designation of op-
erator form. ator or an operating rights owner may
use an areawide bond under this para-
(b) In all cases other than that in
paragraph (a) of this section, you must graph to satisfy your bond obligation.
submit new designation of operator (d) If a surety makes payment to the
forms, in accordance with § 550.143 of United States under a bond or alter-
this chapter. In the event that you are native form of security maintained
transferring multiple operating rights under this section, the surety’s remain-
interests, you must comply with this ing liability under the bond or alter-
requirement for each interest that does native form of security is reduced by
not fall within paragraph (a) of this the amount of that payment. See para-
section. graph (e) of this section for the require-
ment to replace the reduced bond cov-
Subpart I—Bonding or Other erage.
Financial Assurance (e) If the value of your surety bond or
alternative security is reduced because
§ 556.900 Bond requirements for an oil of a default or for any other reason,
and gas or sulfur lease. you must provide additional bond cov-
This section establishes bond require- erage sufficient to meet the security
ments for the lessee of an OCS oil and required under this subpart within 6
gas or sulfur lease. months, or such shorter period of time
(a) Before BOEM will issue a new as the Regional Director may direct.
lease or approve the assignment of an (f) You may pledge United States De-
existing lease to you as lessee, you or partment of the Treasury (Treasury)
478
securities instead of a bond. The Treas- conditions of the lease by the earliest
ury securities you pledge must be nego- of:
tiable for an amount of cash equal to (A) The date you submit a proposed
the value of the bond they replace. exploration plan (EP) for approval; or
(1) If you pledge Treasury securities (B) The date you submit a request for
under this paragraph (f), you must approval of the assignment of a lease
monitor their value. If their market on which an EP has been approved.
value falls below the level of bond cov- (ii) The Regional Director may au-
erage required under this subpart, you thorize you to submit the $200,000 lease
must pledge additional Treasury secu-
exploration bond after you submit an
rities to raise the value of the securi-
EP, but before approval of drilling ac-
ties pledged to the required amount.
tivities under the EP.
(2) If you pledge Treasury securities,
you must include authority for the Re- (iii) You may satisfy the bond re-
gional Director to sell them and use quirement of this paragraph (a) by pro-
the proceeds in the event that the Re- viding a new bond or by increasing the
gional Director determines that you amount of your existing bond.
fail to satisfy any lease obligation. (2) A $200,000 lease exploration bond
(g) You may pledge alternative types pursuant to paragraph (a)(1) of this sec-
of security instruments instead of pro- tion need not be submitted and main-
viding a bond if the Regional Director tained if the lessee either:
determines that the alternative secu- (i) Furnishes and maintains an
rity protects the interests of the areawide bond in the sum of $1 million
United States to the same extent as issued by a qualified surety and condi-
the required bond. tioned on compliance with all the
(1) If you pledge an alternative type terms and conditions of oil and gas and
of security under this paragraph, you sulfur leases held by the lessee on the
must monitor the security’s value. If OCS for the area in which the lease is
its market value falls below the level situated; or
of bond coverage required under this (ii) Furnishes and maintains a bond
subpart, you must pledge additional se- pursuant to paragraph (b)(2) of this sec-
curities to raise the value of the securi- tion.
ties pledged to the required amount. (b) This paragraph explains what
(2) If you pledge an alternative type bonds you (the lessee) must provide be-
of security, you must include authority fore lease development and production
for the Regional Director to sell the se-
activities commence.
curity and use the proceeds when the
Regional Director determines that you (1)(i) You must furnish the Regional
failed to satisfy any lease obligation. Director a $500,000 bond that guaran-
(h) If you fail to replace a deficient tees compliance with all the terms and
bond or to provide additional bond cov- conditions of the lease by the earliest
erage upon demand, the Regional Di- of:
rector may: (A) The date you submit a proposed
(1) Assess penalties under part 550, development and production plan
subpart N of this chapter; (DPP) or development operations co-
(2) Suspend production and other op- ordination document (DOCD) for ap-
erations on your leases in accordance proval; or
with 30 CFR 250.173; and (B) The date you submit a request for
(3) Initiate action to cancel your approval of the assignment of a lease
lease. on which a DPP or DOCD has been ap-
proved.
§ 556.901 Additional bonds. (ii) The Regional Director may au-
(a) This paragraph explains what thorize you to submit the $500,000 lease
bonds you must provide before lease ex- development bond after you submit a
ploration activities commence. DPP or DOCD, but before he/she ap-
(1)(i) You must furnish the Regional proves the installation of a platform or
Director a $200,000 bond that guaran- the commencement of drilling activi-
tees compliance with all the terms and ties under the DPP or DOCD.
479
§ 556.902 30 CFR Ch. V (7–1–18 Edition)
(iii) You may satisfy the bond re- (B) Trade references, including
quirement of this paragraph by pro- names and addresses of other lessees,
viding a new bond or by increasing the drilling contractors, and suppliers with
amount of your existing bond. whom you have dealt; and
(2) You need not submit and main- (v) Record of compliance with laws,
tain a $500,000 lease development bond regulations, and lease terms.
pursuant to paragraph (b)(1) of this sec- (2) You may satisfy the Regional Di-
tion if you furnish and maintain an rector’s demand for additional security
areawide bond in the sum of $3 million by increasing the amount of your exist-
issued by a qualified surety and condi- ing bond or by providing additional
tioned on compliance with all the bond or bonds.
terms and conditions of oil and gas and (e) The Regional Director will deter-
sulfur leases you hold on the OCS for mine the amount of additional bond re-
the area in which the lease is located. quired to guarantee compliance. The
(c) If you can demonstrate to the sat- Regional Director will consider poten-
isfaction of the authorized officer that tial underpayment of royalty and cu-
you can satisfy your decommissioning mulative decommissioning obligations.
obligations for less than the amount of (f) If your cumulative potential obli-
lease bond coverage required under gations and liabilities either increase
paragraph (b)(1) of this section, the au- or decrease, the Regional Director may
thorized officer may accept a lease sur- adjust the amount of additional bond
ety bond in an amount less than the required.
prescribed amount, but not less than (1) If the Regional Director proposes
the amount of the cost for decommis- an adjustment, the Regional Director
sioning. will:
(d) The Regional Director may deter-
(i) Notify you and the surety of any
mine that additional security (i.e., se-
proposed adjustment to the amount of
curity above the amounts prescribed in
bond required; and
§ 556.900(a) and paragraphs (a) and (b) of
(ii) Give you an opportunity to sub-
this section) is necessary to ensure
mit written or oral comment on the ad-
compliance with the obligations under
justment.
your lease, the regulations in this
chapter, and the regulations in 30 CFR (2) If you request a reduction of the
chapters II and XII. amount of additional bond required,
(1) The Regional Director’s deter- you must submit evidence to the Re-
mination will be based on his/her eval- gional Director demonstrating that the
uation of your ability to carry out projected amount of royalties due the
present and future financial obliga- Government and the estimated costs of
tions demonstrated by: decommissioning are less than the re-
(i) Financial capacity substantially quired bond amount. If the Regional
in excess of existing and anticipated Director finds that the evidence you
lease and other obligations, as evi- submit is convincing, the Regional Di-
denced by audited financial statements rector may reduce the amount of addi-
(including auditor’s certificate, bal- tional bond required.
ance sheet, and profit and loss sheet);
§ 556.902 General requirements for
(ii) Projected financial strength sig- bonds.
nificantly in excess of existing and fu-
ture lease obligations based on the es- (a) Any bond or other security that
timated value of your existing OCS you, as lessee, operating rights owner
lease production and proven reserves or operator, provide under this part
for future production; must:
(iii) Business stability based on five (1) Be payable upon demand to the
years of continuous operation and pro- Regional Director;
duction of oil and gas or sulfur in the (2) Guarantee compliance with all of
OCS or in the onshore oil and gas in- your obligations under the lease, regu-
dustry; lations in this chapter, and regulations
(iv) Reliability in meeting obliga- under 30 CFR chapters II and XII; and
tions based on: (3) Guarantee compliance with the
(A) Credit rating; or obligations of all lessees, operating
480
rights owners and operators on the (b) You must notify the Regional Di-
lease. rector of any action filed alleging that
(b) All bonds and pledges you furnish you, your surety, or your guarantor are
under this part must be on a form or in insolvent or bankrupt. You must notify
a form approved by the Director. Sur- the Regional Director within 72 hours
ety bonds must be issued by a surety of learning of such an action. All bonds
that the Treasury certifies as an ac- must require the surety to provide this
ceptable surety on Federal bonds and information to you and directly to
that is listed in the current Treasury BOEM.
Circular No. 570. You may obtain a
copy of the current Treasury Circular § 556.904 Lease-specific abandonment
No. 570 from the Surety Bond Branch, accounts.
Financial Management Service, De- (a) The Regional Director may au-
partment of the Treasury, East-West thorize you to establish a lease-specific
Highway, Hyattsville, MD 20782. abandonment account in a federally in-
(c) You and a qualified surety must sured institution in lieu of the bond re-
execute your bond. When either party quired under § 556.901(d). The account
is a corporation, an authorized official must provide that, except as provided
for the party must sign the bond and in paragraph (a)(3) of this section,
attest to it by an imprint of the cor- funds may not be withdrawn without
porate seal. the written approval of the Regional
(d) Bonds must be non-cancellable, Director.
except as provided in § 556.906 of this (1) Funds in a lease-specific abandon-
part. Bonds must continue in full force ment account must be payable upon de-
and effect even though an event occurs mand to BOEM and pledged to meet
that could diminish, terminate, or can- your decommissioning obligations.
cel a surety obligation under State sur- (2) You must fully fund the lease-spe-
ety law. cific abandonment account to cover all
(e) Lease bonds must be: decommissioning costs as estimated by
(1) A surety bond; BOEM within the timeframe the Re-
gional Director prescribes.
(2) Treasury securities as provided in
(3) You must provide binding instruc-
§ 556.900(f);
tions under which the institution man-
(3) Another form of security approved aging the account is to purchase Treas-
by the Regional Director; or ury securities pledged to BOEM under
(4) A combination of these security paragraph (d) of this section.
methods. (b) Any interest paid on funds in a
(f) You may submit a bond to the Re- lease-specific abandonment account
gional Director executed on a form ap- will be treated as other funds in the ac-
proved under paragraph (b) of this sec- count unless the Regional Director au-
tion that you have reproduced or gen- thorizes in writing the payment of in-
erated by use of a computer. If you do, terest to the party who deposits the
and if the document omits terms or funds.
conditions contained on the form ap- (c) The Regional Director may allow
proved by the Director, the bond you you to pledge Treasury securities that
submit will be deemed to contain the are made payable upon demand to the
omitted terms and conditions. Regional Director to satisfy your obli-
gation to make payments into a lease-
§ 556.903 Lapse of bond. specific abandonment account.
(a) If your surety becomes bankrupt, (d) Before the amount of funds in a
insolvent, or has its charter or license lease-specific abandonment account
suspended or revoked, any bond cov- equals the maximum insurable amount
erage from that surety terminates im- as determined by the Federal Deposit
mediately. In that event, you must Insurance Corporation or the Federal
promptly provide a new bond in the Savings and Loan Insurance Corpora-
amount required under §§ 556.900 and tion, the institution managing the ac-
556.901 to the Regional Director and ad- count must use the funds in the ac-
vise the Regional Director of the lapse count to purchase Treasury securities
in your previous bond. pledged to BOEM under paragraph (c)
481
§ 556.905 30 CFR Ch. V (7–1–18 Edition)
of this section. The institution man- compliance with all lessees’ lease obli-
aging the lease specific-abandonment gations, the obligations of all oper-
account will join with the Regional Di- ating rights owners, and the obliga-
rector to establish a Federal Reserve tions of all operators on the lease. The
Circular 154 account to hold these Regional Director will base acceptance
Treasury securities, unless the Re- of your third-party guarantee on the
gional Director authorizes the man- following criteria:
aging institution to retain the pledged (1) The period of time that your
Treasury securities in a separate trust third-party guarantor (guarantor) has
account. You may obtain a copy of the been in continuous operation as a busi-
current Treasury Circular No. 154 from ness entity where:
the Surety Bond Branch, Financial (i) Continuous operation is the time
Management Service, Department of that your guarantor conducts business
the Treasury, East-West Highway, Hy- immediately before you post the guar-
attsville, MD 20782. antee; and
(e) The Regional Director may re- (ii) Continuous operation excludes
quire you to create an overriding roy- periods of interruption in operations
alty or production payment obligation that are beyond your guarantor’s con-
for the benefit of a lease-specific ac- trol and that do not affect your guar-
count pledged for the decommissioning antor’s likelihood of remaining in busi-
of a lease. The required obligation may ness during exploration, development,
be associated with oil and gas or sulfur production, and decommissioning.
production from a lease other than the (2) Financial information available in
lease bonded through the lease-specific the public record or submitted by your
abandonment account. guarantor, on your guarantor’s own
initiative, in sufficient detail to show
§ 556.905 Using a third-party guar- to the Regional Director’s satisfaction
antee instead of a bond. that your guarantor is qualified based
(a) When the Regional Director may ac- on:
cept a third-party guarantee. The Re- (i) Your guarantor’s current rating
gional Director may accept a third- for its most recent bond issuance by ei-
party guarantee instead of an addi- ther Moody’s Investor Service or
tional bond under § 556.901(d) if: Standard and Poor’s Corporation;
(1) The guarantee meets the criteria (ii) Your guarantor’s net worth, tak-
in paragraph (c) of this section; ing into account liabilities under its
(2) The guarantee includes the terms guarantee of compliance with all the
specified in paragraph (d) of this sec- terms and conditions of your lease, the
tion; regulations in this chapter and 30 CFR
(3) The guarantor’s total outstanding chapters II and XII, and your guaran-
and proposed guarantees do not exceed tor’s other guarantees;
25 percent of its unencumbered net (iii) Your guarantor’s ratio of current
worth in the United States; and assets to current liabilities, taking
(4) The guarantor submits an indem- into account liabilities under its guar-
nity agreement meeting the criteria in antee of compliance with all the terms
paragraph (e) of this section. and conditions of your lease, the regu-
(b) What to do if your guarantor be- lations in this chapter and 30 CFR
comes unqualified. If, during the life of chapters II and XII, and your guaran-
your third-party guarantee, your guar- tor’s other guarantees; and
antor no longer meets the criteria of (iv) Your guarantor’s unencumbered
paragraphs (a)(3) and (c)(3) of this sec- fixed assets in the United States.
tion, you must: (3) When the information required by
(1) Notify the Regional Director im- paragraph (c) of this section is not pub-
mediately; and licly available, your guarantor may
(2) Cease production until you com- submit the information in the fol-
ply with the bond coverage require- lowing table. Your guarantor must up-
ments of this subpart. date the information annually within
(c) Criteria for acceptable guarantees. If 90 days of the end of the fiscal year or
you propose to furnish a third party’s by the date prescribed by the Regional
guarantee, that guarantee must ensure Director.
482
The guarantor should submit That
(i) Financial statements for the most recently Include a report by an independent certified public accountant containing the
completed fiscal year, accountant’s audit opinion or review opinion of the statements. The report
must be prepared in conformance with generally accepted accounting prin-
ciples and contain no adverse opinion.
(ii) Financial statements for completed quarters Your guarantor’s financial officer certifies to be correct.
in the current fiscal year, and
(iii) Additional information as requested by the Your guarantor’s financial officer certifies to be correct.
Regional Director.
(d) Provisions required in all third- (3) When a person or party bound by
party guarantees. Your third-party the indemnity agreement is a cor-
guarantee must contain each of the fol- porate entity, two corporate officers
lowing provisions. who are authorized to bind the corpora-
(1) If you, your operator, or an oper- tion must sign the indemnity agree-
ating rights owner fails to comply with ment.
any lease term or regulation, your (4) Your guarantor and the other cor-
guarantor must either: porate entities bound by the indemnity
(i) Take corrective action; or, agreement must provide the Regional
(ii) Be liable under the indemnity Director copies of:
agreement to provide, within 7 cal- (i) The authorization of the signatory
endar days, sufficient funds for the Re- corporate officials to bind their respec-
gional Director to complete corrective tive corporations;
action. (ii) An affidavit certifying that the
(2) If your guarantor complies with agreement is valid under all applicable
paragraph (d)(1) of this section, this laws; and
compliance will not reduce its liabil- (iii) Each corporation’s corporate au-
ity. thorization to execute the indemnity
(3) If your guarantor wishes to termi- agreement.
nate the period of liability under its
(5) If your third-party guarantor or
guarantee, it must:
another party bound by the indemnity
(i) Notify you and the Regional Di-
agreement is a partnership, joint ven-
rector at least 90 days before the pro-
ture, or syndicate, the indemnity
posed termination date;
agreement must:
(ii) Obtain the Regional Director’s
approval for the termination of the pe- (i) Bind each partner or party who
riod of liability for all or a specified has a beneficial interest in your guar-
portion of your guarantor’s guarantee; antor; and
and (ii) Provide that, upon demand by the
(iii) Remain liable for all work and Regional Director under your third-
workmanship performed during the pe- party guarantee, each partner is joint-
riod that your guarantor’s guarantee is ly and severally liable for compliance
in effect. with all terms and conditions of your
(4) You must provide a suitable release.
placement security instrument before (6) When forfeiture is called for under
the termination of the period of liabil- § 556.907, the indemnity agreement
ity under your third-party guarantee. must provide that your guarantor will
(e) Required criteria for indemnity either:
agreements. If the Regional Director ap- (i) Bring your lease into compliance;
proves your third-party guarantee, the or
guarantor must submit an indemnity (ii) Provide, within 7 calendar days,
agreement. sufficient funds to permit the Regional
(1) The indemnity agreement must be Director to complete corrective action.
executed by your guarantor and all (7) The indemnity agreement must
persons and parties bound by the agree- contain a confession of judgment. It
ment. must provide that, if the Regional Di-
(2) The indemnity agreement must rector determines that you, your oper-
bind each person and party executing ator, or an operating rights owner is in
the agreement jointly and severally. default of the lease, the guarantor:
483
§ 556.906 30 CFR Ch. V (7–1–18 Edition)
(i) Will not challenge the determina- (1) The new bond is equal to or great-
tion; and er than the bond that was terminated,
(ii) Will remedy the default. or you provide an alternative form of
(8) Each indemnity agreement is security, and the Regional Director de-
deemed to contain all terms and condi- termines that the alternative form of
tions contained in this paragraph (e), security provides a level of security
even if the guarantor has omitted equal to or greater than that provided
them. for by the bond that was terminated;
§ 556.906 Termination of the period of (2) For a base bond submitted under
liability and cancellation of a bond. § 556.900(a) or under § 556.901(a) or (b),
the surety issuing the new bond agrees
This section defines the terms and
conditions under which BOEM will ter- to assume all outstanding liabilities
minate the period of liability of a bond that accrued during the period of li-
or cancel a bond. Terminating the pe- ability that was terminated; and
riod of liability of a bond ends the pe- (3) For additional bonds submitted
riod during which obligations continue under § 556.901(d), the surety issuing the
to accrue, but does not relieve the sur- new additional bond agrees to assume
ety of the responsibility for obligations that portion of the outstanding liabil-
that accrued during the period of li- ities that accrued during the period of
ability. Canceling a bond relieves the liability that was terminated and that
surety of all liability. The liabilities the Regional Director determines may
that accrue during a period of liability exceed the coverage of the base bond,
include obligations that started to ac- and of which the Regional Director no-
crue prior to the beginning of the pe- tifies the provider of the bond.
riod of liability and had not been met, (c) This paragraph applies if the pe-
and obligations that begin accruing riod of liability is terminated for a
during the period of liability. bond, but the bond is not replaced by a
(a) When you or the surety under bond of an equivalent amount. The sur-
your bond requests termination: ety that provided your terminated
(1) The Regional Director will termi- bond will continue to be responsible for
nate the period of liability under your accrued obligations:
bond within 90 days after BOEM re-
(1) Until the obligations are satisfied;
ceives the request; and
and
(2) If you intend to continue oper-
ations, or have not met all decommis- (2) For additional periods of time in
sioning obligations, you must provide a accordance with paragraph (d) of this
replacement bond of an equivalent section.
amount. (d) When your lease expires or is ter-
(b) If you provide a replacement minated, the surety that issued a bond
bond, the Regional Director will cancel will continue to be responsible, and the
your previous bond and the surety that Regional Director will retain other
provided your previous bond will not forms of security as shown in the fol-
retain any liability, provided that: lowing table:
For the following type of bond The period of liability will end Your bond will be cancelled
(1) Base bonds submitted When the Regional Director Seven years after the termination of the lease, 6 years after
under § 556.900(a), determines that you have completion of all bonded obligations, or at the conclusion of
§ 556.901(a), or (b). met all of your obligations any appeals or litigation related to your bonded obligation,
under the lease, whichever is the latest. The Regional Director will reduce
the amount of your bond or return a portion of your security
if the Regional Director determines that you need less than
the full amount of the base bond to meet any possible fu-
ture problems.
(2) Additional bonds submitted When the Regional Director When you meet your bonded obligations, unless the Regional
under § 556.901(d). determines that you have Director: (i) Determines that the future potential liability re-
met all your obligations cov- sulting from any undetected problem is greater than the
ered by the additional bond, amount of the base bond; and
(ii) Notifies the provider of the bond that the Regional Director
will wait 7 years before cancelling all or a part of the bond
(or longer period as necessary to complete any appeals or
judicial litigation related to your bonding obligation).
484
(e) For all bonds, the Regional Direc- (i) You agree to, and demonstrate
tor may reinstate your bond as if no that you will bring your lease into
cancellation or release had occurred if: compliance within the timeframe that
(1) A person makes a payment under the Regional Director prescribes;
the lease and the payment is rescinded (ii) Your third-party guarantor
or must be repaid by the recipient be- agrees to and demonstrates that it will
cause the person making the payment complete the corrective action to bring
is insolvent, bankrupt, subject to reor- your lease into compliance within the
ganization, or placed in receivership; or timeframe that the Regional Director
(2) The responsible party represents prescribes; or
to BOEM that it has discharged its ob- (iii) Your surety agrees to and dem-
ligations under the lease, and the rep- onstrates that it will bring your lease
resentation was materially false when into compliance within the timeframe
the bond was canceled or released. that the Regional Director prescribes,
even if the cost of compliance exceeds
§ 556.907 Forfeiture of bonds and/or
other securities. the face amount of the bond or other
surety instrument.
This section explains how a bond or (d) If the Regional Director finds you
other security may be forfeited. are in default, he/she may cause the
(a) The Regional Director will call forfeiture of any bonds and other secu-
for forfeiture of all or part of the bond, rity deposited as your guarantee of
other form of security, or guarantee compliance with the terms and condi-
you provide under this part if: tions of your lease and the regulations
(1) You (the party who provided the in this chapter and 30 CFR chapters II
bond) refuse, or the Regional Director and XII.
determines that you are unable to com- (e) If the Regional Director deter-
ply with any term or condition of your
mines that your bond and/or other se-
lease; or
curity is forfeited, the Regional Direc-
(2) You default on one of the condi- tor will:
tions under which the Regional Direc-
(1) Collect the forfeited amount; and
tor accepts your bond, third-party
guarantee, and/or other form of secu- (2) Use the funds collected to bring
rity. your leases into compliance and to cor-
(b) The Regional Director may pur- rect any default.
sue forfeiture of your bond without (f) If the amount the Regional Direc-
first making demands for performance tor collects under your bond and other
against any lessee, operating rights security is insufficient to pay the full
owner, or other person authorized to cost of corrective actions he/she may:
perform lease obligations. (1) Take or direct action to obtain
(c) The Regional Director will: full compliance with your lease and the
(1) Notify you, the surety on your regulations in this chapter; and
bond or other form of security, and any (2) Recover from you, any co-lessee,
third-party guarantor of a determina- operating rights owner, and/or any
tion to call for forfeiture of the bond, third-party guarantor responsible
security, or guarantee under this sec- under this subpart all costs in excess of
tion. the amount he/she collects under your
(i) This notice will be in writing, and forfeited bond and other security.
will provide the reason for the for- (g) The amount that the Regional Di-
feiture and the amount to be forfeited. rector collects under your forfeited
(ii) The Regional Director must base bond and other security may exceed
the amount he/she determines is for- the costs of taking the corrective ac-
feited upon his/her estimate of the tions required to obtain full compli-
total cost of corrective action to bring ance with the terms and conditions of
your lease into compliance. your lease and the regulations in this
(2) Advise you, your third-party guar- chapter and 30 CFR chapters II and XII.
antor, and any surety that you, your In this case, the Regional Director will
guarantor, and any surety may avoid return the excess funds to the party
forfeiture if, within five working days: from whom they were collected.
485
§ 556.1000 30 CFR Ch. V (7–1–18 Edition)
Subpart J—Bonus or Royalty Cred- quished to the satisfaction of the Di-

its for Exchange of Certain rector.
Leases (c) The effective date of the relin-
quishment is the date on which the re-
§ 556.1000 Leases formerly eligible for linquishment is filed with the proper
a bonus or royalty credit. BOEM regional office.
Bonus or royalty credits were avail- § 556.1102 Under what circumstances
able to lessees with leases: will BOEM cancel my lease?
(a) In effect on December 20, 2006, and
(a) BOEM may cancel your non-pro-
located in:
ducing lease if you fail to comply with
(1) The Eastern Planning Area and
any provision of OCSLA, the lease, or
within 125 miles of the coastline of the
applicable regulations if the failure
State of Florida; or,
continues for 30 days after mailing of
(2) The Central Planning Area and notice to your post office address of
within the Desoto Canyon OPD, the record by registered mail and you have
Destin Dome OPD, or the Pensacola not requested and been granted any ad-
OPD and within 100 miles of the coast-
ditional time within which to correct
line of the State of Florida.
the failure. Such cancellation is sub-
(b) The deadline for applying for such ject to judicial review under section 23
a bonus or royalty credit was October of OCSLA (43 U.S.C. 1349).
14, 2010; therefore, lessees may no
(b) Your producing lease may be can-
longer apply for such credits.
celled if you fail to comply with any
provision of OCSLA, the lease, or appli-
Subpart K—Ending a Lease cable regulations. The Secretary will
cancel a producing lease after the judi-
§ 556.1100 How does a lease expire? cial proceedings required under section
(a) Your oil and gas lease will auto- 5(d) of OCSLA (43 U.S.C. 1334(d)).
matically expire at the end of its pri- (c) BOEM may cancel your lease if it
mary term unless you have taken ac- determines that the lease was obtained
tion, as set forth in § 556.601, to main- by fraud or misrepresentation. You will
tain the lease beyond the primary have notice and an opportunity to be
term. heard before BOEM cancels your lease.
(b) Your sulfur lease will automati- (d) BOEM may cancel your lease at
cally expire at the end of its primary any time if it determines, after a hear-
term unless you have taken action, as ing, that continued activity will prob-
set forth in § 556.603, to maintain the ably cause serious harm or damage to
lease beyond the primary term. life (including fish and other aquatic
life), property, any mineral, national
§ 556.1101 May I relinquish my lease or security or defense, or the marine,
an aliquot part thereof? coastal, or human environment; that
(a) A record title owner may relin- the threat of harm or damage will not
quish a lease or an aliquot part of a disappear or decrease to an acceptable
lease if all record title owners of a level within a reasonable period of
lease or any aliquot part(s) of the lease time; and the advantages of cancella-
file three original copies of a request to tion outweigh the advantages of con-
relinquish with BOEM on Form BOEM– tinuing the lease.
0152, entitled, ‘‘Relinquishment of Fed- (e) BOEM may cancel your lease at
eral Oil and Gas Lease.’’ No filing fee is any time after operations under the
required. lease have been suspended or tempo-
(b) A relinquishment will be subject rarily prohibited by the Department
to the continued obligation of the continuously for a period of five years
record title owner and the surety to pursuant to paragraph (d) of this sec-
make all payments due, including any tion, absent your request for a shorter
accrued rentals, royalties and deferred period.
bonuses, and to abandon all wells and (f) If, upon demand, you fail to pro-
condition or remove all platforms and vide a bond, or alternative type of se-
other facilities on the land to be relin- curity instrument acceptable to BOEM,
486
the Regional Director may assess pen- that is included in a lease covering sul-
alties or cancel your lease in accord- fur under section 6(b) of the Act.
ance with part 550, subpart N of this
chapter; Subpart M—Environmental Studies
(g) Title 30, part 550, subpart A of the
CFR provides the procedures for lease § 556.1300 Environmental studies.
cancellation and compensation, if ap- (a) The Director will conduct a study
plicable. or studies of any area or region in-
cluded in any oil and gas lease sale or
Subpart L—Leases Maintained other lease in order to establish infor-
Under Section 6 of OCSLA mation needed for assessment and
management of impacts on the human,
§ 556.1200 Effect of regulations on marine and coastal environments
lease. which may be affected by OCS oil and
(a) All regulations in this part, inso- gas or other mineral activities in such
far as they are applicable, will super- area or region. The purposes of such
sede the provisions of any lease that is studies will include, to the extent prac-
maintained under section 6(a) of the ticable, analyses of the impacts of pol-
Act. However, the provisions of a lease lutants introduced into the environ-
relating to area, minerals, rentals, roy- ments and impacts of offshore activi-
alties (subject to sections 6(a)(8) and (9) ties on the seabed and affected coastal
of the Act), and term (subject to sec- areas.
tion 6(a)(10) of the Act and, as to sul- (b) Studies will be planned and car-
fur, subject to section 6(b)(2) of the ried out in cooperation with the af-
Act) will continue in effect, and, in the fected States and interested parties
event of any conflict or inconsistency, and, to the extent possible, will not du-
will take precedence over these regula- plicate studies done under other laws.
tions. Where appropriate, the Director will,
(b) A lease maintained under section to the maximum extent practicable,
6(a) of the Act is also subject to all op- coordinate with the National Oceanic
erating and conservation regulations and Atmospheric Administration
applicable to the OCS. In addition, the (NOAA) in executing its environmental
regulations relating to geophysical and studies responsibilities. The Director
geological exploratory operations and may also make agreements for the co-
to pipeline ROW(s) are applicable, to ordination with, or the use of the serv-
the extent that those regulations are ices or resources of, any other Federal,
not contrary to or inconsistent with State or local government agency in
the lease provisions relating to area, the conduct of such studies.
minerals, rentals, royalties and term. (c) Any study of an area or region re-
The lessee must comply with any pro- quired by paragraph (a) of this section
vision of the lease as validated, the for a lease sale will be commenced not
subject matter of which is not covered later than six months prior to holding
in the regulations in this part. a lease sale for that area. The Director
may use information collected in any
§ 556.1201 Section 6(a) leases and prior study. The Director may initiate
leases other than those for oil, gas, studies for an area or region not identi-
or sulfur. fied in the leasing program.
The existence of an oil and gas lease (d) After the leasing and developing
maintained under section 6(a) of the of any area or region, the Director will
Act precludes only the issuance in the conduct such studies as are deemed
same area of an oil and gas lease under necessary to establish additional infor-
OCSLA, but does not preclude the mation and will monitor the human,
issuance of other types of leases under marine and coastal environments of
OCSLA. However, no other lease may such area or region in a manner de-
authorize or permit the lessee there- signed to provide information, which
under unreasonably to interfere with can be compared with the results of
or endanger operations under the exist- studies conducted prior to OCS oil and
ing lease. The United States will not gas development. This will be done to
grant any sulfur leases on any area identify any significant changes in the
487
quality and productivity of such envi- 560.222 How long will a royalty suspension
ronments, to establish trends in the volume be effective for a lease issued in
area studies, and to design experiments a sale held after November 2000?
identifying the causes of such changes. 560.223 How do I measure natural gas pro-
Findings from such studies will be used duction for a lease issued in a sale held
to recommend modifications in prac- after November 2000?
tices that are employed to mitigate the 560.224 How will royalty suspension apply if
BOEM assigns a lease issued in a sale
effects of OCS activities and to en-
held after November 2000 to a field that
hance the data/information base for
has a pre-Act lease?
predicting impacts which might result
from a single lease sale or cumulative BIDDING SYSTEM SELECTION CRITERIA
OCS activities.
560.230 What criteria does BOEM use for se-
(e) Information available or collected
lecting bidding systems and bidding sys-
by the studies program will, to the ex- tem components?
tent practicable, be provided in a form
and in a timeframe that can be used in Subpart C—Operating Allowances
the decision-making process associated
with a specific leasing action or with 560.300 Operating allowances.
longer term OCS minerals management
responsibilities. Subpart D [Reserved]
Subpart E—Electronic Filings

PART 560—OUTER CONTINENTAL
SHELF OIL AND GAS LEASING 560.500 Electronic document and data trans-
missions.
Subpart A—General Provisions 560.501 How long will the confidentiality of
electronic document and data trans-
560.100 Authority missions be maintained?
560.100 What is the purpose of this part? 560.502 Are electronically filed document
560.102 What definitions apply to this part?
transmissions legally binding?
560.103 What is BOEM’s authority to collect
information? AUTHORITY: Section 104, Public Law 97–451,
96 Stat. 2451 (30 U.S.C. 1714), Public Law 109–
Subpart B—Bidding Systems 432, Div C, Title I, 120 Stat. 3000; 30 U.S.C.
1751; 31 U.S.C. 9701; 43 U.S.C. 1334; 33 U.S.C.
GENERAL PROVISIONS
2704, 2716; E.O. 12777, as amended; 43 U.S.C.
560.200 What is the purpose of this subpart? 1331 et seq., 43 U.S.C. 1337.
560.201 What definitions apply to this sub-
part? SOURCE: 76 FR 64623, Oct. 18, 2011, unless
560.202 What bidding systems may BOEM otherwise noted.
use?
560.203 What conditions apply to the bidding
systems that BOEM uses?
Subpart A—General Provisions
ELIGIBLE LEASES § 560.100 Authority.
560.210 How do royalty suspension volumes (a) The Outer Continental Shelf
apply to eligible leases? Lands Act (OCSLA) (43 U.S.C. 1334)
560.211 When does an eligible lease qualify (‘‘Outer Continental Shelf Lands Act
for a royalty suspension volume?
560.212 How does BOEM assign and monitor Amendments of 1978’’).
royalty suspension volumes for eligible (b) The Federal Oil and Gas Royalty
leases? Management Act, as amended
560.213 How long will a royalty suspension (FOGRMA) (30 U.S.C. 1711), including
volume for an eligible lease be effective? the Federal Oil and Gas Royalty Sim-
550.214 How do I measure natural gas pro-
duction on my eligible lease?
plification and Fairness Act of 1996, (30
U.S.C. 1701 note).
ROYALTY SUSPENSIONS (RS) LEASES (c) The Independent Offices Appro-
560.220 How does royalty suspension apply priations Act of 1952 (31 U.S.C. 9701).
to leases issued in a sale held after No- (d) Public Law 89–554, 1966 (5 U.S.C.
vember 2000? 301).

560.221 When does a lease issued in a sale
held after November 2000 get a royalty [81 FR 18175, Mar. 30, 2016]
suspension?
488
§ 560.101 What is the purpose of this of non-hydrocarbons that exist in the

part? gaseous phase.
This part 560 implements the Outer Oil means a mixture of hydrocarbons
Continental Shelf Lands Act (OCSLA), that exists in a liquid or gaseous phase
43 U.S.C. 1331 et seq., as amended, by in an underground reservoir and which
providing regulations to foster com- remains or becomes liquid at atmos-
pheric pressure after passing through
petition including, but not limited to:
surface separating facilities, including
(a) Implementing alternative bidding
condensate recovered by means other
systems;
than a manufacturing process.
(b) Prohibiting joint bidding for de- Outer Continental Shelf (OCS) means
velopment rights by certain types of all submerged lands lying seaward and
joint ventures; and outside of the area of lands beneath
(c) Establishing diligence require- navigable waters as defined in the Sub-
ments for Federal OCS leases. merged Lands Act (43 U.S.C. 1301–1315)
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 and of which the subsoil and seabed ap-
FR 18175, Mar. 30, 2016] pertain to the United States and are
subject to its jurisdiction and control.
§ 560.102 What definitions apply to this OCSLA means the Outer Continental
part? What definitions apply to Shelf Lands Act, as amended (Act of
this part? August 7, 1953, Ch. 345, 67 Stat. 462, 43
(a) Terms used in this part have the U.S.C. 1331–1356a, as amended by Pub.
meaning given in the Act and as de- L. 95–372, 92 Stat. 629).
fined in this part. Person means a natural person, where
(b) The following definitions apply to so designated, or an entity, such as a
this part: partnership, association, State, polit-
Area or region means the geographic ical subdivision of a State or territory,
area or region over which the BOEM or a private, public, or municipal cor-
authorized officer has jurisdiction, un- poration.
less the context in which those words We means the Bureau of Ocean En-
are used indicates that a different ergy Management (BOEM).
meaning is intended. You means the lessee or operating
BOEM means Bureau of Ocean En- rights owner.
ergy Management. [81 FR 18175, Mar. 30, 2016]
Designated official means a represent-
ative of DOI subject to the direction § 560.103 What is BOEM’s authority to
and supervisory authority of the Direc- collect information?
tors, BOEM, and the appropriate Re- (a) The Paperwork Reduction Act of
gional Manager of the BOEM author- 1995 (PRA) requires us to inform you
ized and empowered to supervise and that we may not conduct or sponsor,
direct all oil and gas operations and to and you are not required to respond to,
perform other duties prescribed in this a collection of information unless it
chapter. displays a currently valid OMB control
Director means Director, BOEM, DOI. number. The information collection
DOI means the Department of the In- under 30 CFR part 560 is either exempt
terior, including the Secretary of the from the PRA (5 CFR 1320.4(a)(2), (c)) or
Interior, or his or her delegate. refers to requirements covered under 30
Federal lease means an agreement CFR parts 203 and 556.
which, for consideration, including, but (b) You may send comments regard-
not limited to, bonuses, rents or royal- ing any aspect of the collection of in-
ties conferred, and covenants to be ob- formation under this part, including
served, authorizes a person to explore suggestions for reducing the burden, to
for, or develop, or produce (or to do any the Information Collection Clearance
or all of these) oil and gas, coal, oil Officer, Bureau of Ocean Energy Man-
shale, tar sands, and geothermal re- agement, 45600 Woodland Road, Ster-
sources on lands or interests in lands ling, VA 20166.
under Federal jurisdiction. [76 FR 64623, Oct. 18, 2011, as amended at 80

Gas or Natural Gas means a mixture FR 57097, Sept. 22, 2015. Redesignated at 81
of hydrocarbons and varying quantities FR 18175, Mar. 30, 2016]
489
§ 560.200 30 CFR Ch. V (7–1–18 Edition)
Subpart B—Bidding Systems which leases for certain OCS tracts are
offered for sale by competitive bidding
GENERAL PROVISIONS and during which bids are received, an-
nounced, and recorded.
§ 560.200 What is the purpose of this Pre-Act lease means a lease that:
subpart?
(1) Is issued as part of an OCS lease
This subpart establishes the bidding sale held before November 28, 1995;
systems that we may use to offer and (2) Is located in the Gulf of Mexico in
sell Federal leases for the exploration, water depths of 200 meters or deeper;
development, and production of oil and and
gas resources located on the OCS.
(3) Lies wholly west of 87 degrees, 30
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 minutes West longitude (see 30 CFR
FR 18175, Mar. 30, 2016] part 203).
Production period means the period
§ 560.201 What definitions apply to this
subpart? during which the amount of oil and gas
produced from a tract (or, if the tract
Act means the Outer Continental is unitized, the amount of oil and gas
Shelf Deep Water Royalty Relief Act, as allocated under a unitization for-
Pub. L. 104–58, 43 U.S.C. 1337(3). mula) will be measured for purposes of
Eligible lease means a lease that: determining the amount of royalty
(1) Is issued as part of an OCS lease
payable to the United States.
sale held after November 28, 1995, and
Qualified bidder means a person who
before November 28, 2000;
(2) Is located in the Gulf of Mexico in has met the appropriate requirements
water depths of 200 meters or deeper; of 30 CFR part 556, subpart G.
(3) Lies wholly west of 87 degrees, 30 Royalty rate means the percentage of
minutes West longitude; and the amount or value of the production
(4) Is offered subject to a royalty sus- saved, removed, or sold that is due and
pension volume. payable to the United States Govern-
Field means an area consisting of a ment.
single reservoir or multiple reservoirs Royalty suspension (RS) lease means a
all grouped on, or related to, the same lease that:
general geological structural feature (1) Is issued as part of an OCS lease
and/or stratigraphic trapping condi- sale held after November 28, 2000;
tion. Two or more reservoirs may be in (2) Is in locations or planning areas
a field, separated vertically by inter- specified in a particular Notice of OCS
vening impervious strata, or laterally Lease Sale; and
by local geologic barriers, or by both. (3) Is offered subject to a royalty sus-
Highest responsible qualified bidder pension specified in a Notice of OCS
means a person who has met the appro- Lease Sale published in the FEDERAL
priate requirements of 30 CFR part 556, REGISTER.
subpart G, and has submitted a bid Tract means a designation assigned
higher than any other bids by qualified solely for administrative purposes to a
bidders on the same tract. block or combination of blocks that
Highest royalty rate means the highest are identified by a leasing map or an
percent rate payable to the United official protraction diagram prepared
States, as specified in the lease, in the by the DOI.
amount or value of the production
Value of production means the value
saved, removed, or sold.
of all oil and gas production saved, re-
Lease period means the time from
moved, or sold from a tract (or, if the
lease issuance until relinquishment,
tract is unitized, the value of all oil
expiration, or termination.
and gas production saved, removed, or
Lowest royalty rate means the lowest
percent rate payable to the United sold and credited to the tract under a
States, as specified in the lease, in the unitization formula) during a period of
amount or value of the production production. The value of production is
saved, removed, or sold. determined under 30 CFR part 1206.

OCS lease sale means the Department [76 FR 64623, Oct. 18, 2011. Redesignated at 81
of the Interior (DOI) proceeding by FR 18175, Mar. 30, 2016]
490
§ 560.202 What bidding systems may tion to each tract included in an OCS
BOEM use? lease sale. The following table lists bid-
We will apply a single bidding system ding systems, the bid variables, and
selected from those listed in this sec- characteristics.
For the bidding system . . . The bid variable is the . . . And the characteristics are . . .
(a) Cash bonus bid with a fixed Cash bonus, The highest responsible qualified bidder will pay a royalty
royalty rate of not less than rate of not less than 12.5 percent at the beginning of the
12.5 percent, lease period. We will specify the royalty rate for each tract
offered in the Notice of OCS Lease Sale published in the
FEDERAL REGISTER.
(b) Royalty rate bid with fixed Royalty rate, We will specify the fixed amount of cash bonus the highest
cash bonus, responsible qualified bidder must pay in the Notice of OCS
Lease Sale published in the FEDERAL REGISTER.
(c) Cash bonus bid with a slid- Cash bonus, (1) We will calculate the royalty rate the highest responsible
ing royalty rate of not less qualified bidder must pay using either:
than 12.5 percent at the be- (i) A sliding-scale formula, which relates the royalty rate to
ginning of the lease period, the adjusted value or volume of production, or
(ii) A schedule that establishes the royalty rate that we will
apply to specified ranges of the adjusted value or volume
of production.
(2) We will determine the adjusted value of production by ap-
plying an inflation factor to the actual value of production.
(3) If you are the successful high bidder, your lease will in-
clude the sliding-scale formula or schedule and will specify
the lowest and highest royalty rates that will apply.
(4) You will pay a royalty rate of not less than 12.5 percent at
the beginning of the lease period.
(5) We will include the sliding-scale royalty formula or sched-
ule, inflation factor and procedures for making the inflation
adjustment and determining the value or amount of produc-
tion in the Notice of OCS Lease Sale published in the FED-
ERAL REGISTER.
(d) Cash bonus bid with fixed Cash bonus, (1) If we award you a lease as the highest responsible quali-
share of the net profits of no fied bidder, you will determine the amount of the net profit
less than 30 percent, share payment to the United States for each month by mul-
tiplying the net profit share base times the net profit share
rate, according to 30 CFR 1220.022. You will calculate the
net profit share base according to 30 CFR 1220.021.
(2) You will pay a net profit share of not less than 30 percent.
(3) We will specify the capital recovery factor, as described in
30 CFR 1220.020, and the net profit share rate, both of
which may vary from tract to tract, in the Notice of OCS
Lease Sale published in the FEDERAL REGISTER.
(e) Cash bonus with variable Cash bonus, (1) We may suspend or defer royalty for a period, volume, or
royalty rate(s) during one or value of production. Notwithstanding suspensions or defer-
more periods of production, rals, we may impose a minimum royalty. The suspensions
or deferrals may vary based on prices or price changes of
oil and/or gas.
(2) You may pay a royalty rate less than 12.5 percent on pro-
duction but not less than zero percent.
(3) We will specify the applicable royalty rates(s) and suspen-
sion or deferral magnitudes, formulas, or relationships in
the Notice of OCS Lease Sale published in the FEDERAL
REGISTER.
(f) Cash bonus with royalty Cash bonus, We will base the royalty rate on formula(s) or schedule(s)
rate(s) based on formula(s) specified in the Notice of OCS Lease Sale published in the
or schedule(s) during one or FEDERAL REGISTER.
more periods of production,
(g) Cash bonus with a fixed Cash bonus, Except for periods of royalty suspension, you will pay a fixed
royalty rate of not less than royalty rate of not less than 12.5 percent. If we award to
12.5 percent, at the begin- you a lease under this system, you must calculate the roy-
ning of the lease period, sus- alty due during the designated period using the rate, for-
pension of royalties for a pe- mula, or schedule specified in the lease. We will specify
riod, volume, or value of pro- the royalty rate, formula, or schedule in the Notice of OCS
duction, or depending upon Lease Sale published in the FEDERAL REGISTER.
selected characteristics of
extraction, and with suspen-

sions that may vary based
on the price of production,
491
§ 560.203 30 CFR Ch. V (7–1–18 Edition)
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 (b) Production includes volumes allo-
FR 18175, Mar. 30, 2016] cated to a lease under an approved unit
agreement.
§ 560.203 What conditions apply to the
bidding systems that BOEM uses? [76 FR 64623, Oct. 18, 2011. Redesignated at 81
FR 18175, Mar. 30, 2016]
(a) For each of the bidding systems in
§ 560.110, we will include an annual § 560.211 When does an eligible lease
rental fee. Other fees and provisions qualify for a royalty suspension vol-
may apply as well. The Notice of OCS ume?
Lease Sale published in the FEDERAL
REGISTER will specify the annual rental (a) Your eligible lease will receive a
and any other fees the highest respon- royalty suspension volume as specified
sible qualified bidder must pay and any in the Act. The bidding system in
other provisions. § 560.110(g) applies.
(b) If we use any deferment or sched- (b) Your eligible lease may receive a
ule of payments for the cash bonus bid, royalty suspension volume only if your
we will specify and include it in the entire lease is west of 87 degrees, 30
Notice of OCS Lease Sale published in minutes West longitude.
the FEDERAL REGISTER. [76 FR 64623, Oct. 18, 2011. Redesignated at 81
(c) For the bidding systems listed in FR 18175, Mar. 30, 2016]
this subpart, if the bid variable is a
cash bonus bid, the highest bid by a § 560.212 How does BOEM assign and
qualified bidder determines the amount monitor royalty suspension volumes
of cash bonus to be paid. We will infor eligible leases?
clude the minimum bid level(s) in the (a) We have specified the water depth
Notice of OCS Lease Sale published in category for each eligible lease in the
the FEDERAL REGISTER. final Notice of OCS Lease Sale Pack-
(d) For the bidding systems listed in age. The Final Notice of Sale is pub-
this subpart, if the bid variable is the lished in the FEDERAL REGISTER and
royalty rate, the highest bid by a the complete Final Notice of OCS
qualified bidder determines the royalty Lease Sale Package is available on the
rate to be paid. We will include the BOEM Web site. Our determination of
minimum royalty rate(s) in the Notice water depth for each lease became final
of OCS Lease Sale published in the when we issued the lease.
FEDERAL REGISTER. (b) We have specified in the Notice of
(e) We may, by rule, add to or modify OCS Lease Sale the royalty suspension
the bidding systems listed in § 560.110, volume applicable to each water depth.
according to the procedural require- The following table shows the royalty
ments of the OCSLA, 43 U.S.C. 1331 et suspension volumes for each eligible
seq., as amended by Public Law 95–372, lease in million barrels of oil equiva-
92 Stat. 629.
lent (MMBOE):
FR 18175, Mar. 30, 2016] Minimum royalty suspen-
Water depth sion volume
ELIGIBLE LEASES (1) 200 to less than 400 meters 17.5 MMBOE.
(2) 400 to less than 800 meters 52.5 MMBOE.
§ 560.210 How do royalty suspension (3) 800 meters or more ............ 87.5 MMBOE.
volumes apply to eligible leases?
Royalty suspension volumes, as spec- [76 FR 64623, Oct. 18, 2011. Redesignated at 81
ified in section 304 of the Act, apply to FR 18175, Mar. 30, 2016]
eligible leases that meet the criteria in
§ 560.113. For purposes of this section § 560.213 How long will a royalty sus-
and §§ 560.113 through 560.117: pension volume for an eligible lease
be effective?
(a) Any volumes of production that
are not normally royalty-bearing under A royalty suspension volume for an
the lease or the regulations (e.g., fuel eligible lease will continue through the
gas) do not count against royalty sus- end of the month in which cumulative
pension volumes; and production from the leases in a field
492
entitled to share the royalty suspen- (b) You may apply for a supplemental
sion volume reaches that volume or the royalty suspension for a project under
lease period ends. 30 CFR part 203, if your lease is lo-
cated:
FR 18175, Mar. 30, 2016] (1) In the Gulf of Mexico, in water 200
meters or deeper, and wholly west of 87
§ 560.214 How do I measure natural degrees, 30 minutes West longitude; or
gas production on my eligible lease? (2) Offshore of Alaska.
You must measure natural gas pro- (c) Your RS lease retains the royalty
duction on your eligible lease subject suspension with which we issued it
to the royalty suspension volume as even if we deny your application for
follows: 5.62 thousand cubic feet of nat- more relief.
ural gas, measured according to 30 CFR [76 FR 64623, Oct. 18, 2011. Redesignated at 81
part 250, subpart L, equals one barrel of FR 18175, Mar. 30, 2016]
oil equivalent.
§ 560.222 How long will a royalty sus-
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 pension volume be effective for a
FR 18175, Mar. 30, 2016] lease issued in a sale held after No-
vember 2000?
ROYALTY SUSPENSION (RS) LEASES
(a) The royalty suspension volume
§ 560.220 How does royalty suspension for your RS lease will continue
apply to leases issued in a sale held through the end of the month in which
after November 2000? cumulative production from your lease
We may issue leases with suspension reaches the applicable royalty suspen-
of royalties for a period, volume or sion volume or the lease period ends.
value of production, as authorized in (b)(1) Notwithstanding any royalty
section 303 of the Act. For purposes of suspension volume under this subpart,
this section and §§ 560.121 through you must pay royalty at the lease stip-
560.124: ulated rate on:
(a) Any volumes of production that (i) Any oil produced for any period
are not normally royalty-bearing under stipulated in the lease during which
the lease or the regulations (e.g., fuel the arithmetic average of the daily
gas) do not count against royalty sus- closing price on the New York Mer-
pension volumes; and cantile Exchange (NYMEX) for light
(b) Production includes volumes allo- sweet crude oil exceeds the applicable
cated to a lease under an approved unit threshold price of $36.39 per barrel, ad-
agreement. justed annually after calendar year
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 2007 for inflation unless the lease terms
FR 18175, Mar. 30, 2016] prescribe a different price threshold.
(ii) Any natural gas produced for any
§ 560.221 When does a lease issued in a period stipulated in the lease during
sale held after November 2000 get a which the arithmetic average of the
royalty suspension? daily closing price on the NYMEX for
(a) We will specify any royalty sus- natural gas exceeds the applicable
pension for your RS lease in the Notice threshold price of $4.55 per MMBtu, ad-
of OCS Lease Sale published in the justed annually after calendar year
FEDERAL REGISTER for the sale in 2007 for inflation unless the lease terms
which you acquire the RS lease and prescribe a different price threshold.
will repeat it in the lease document. In (iii) Determine the threshold price
addition: for any calendar year after 2007 by ad-
(1) Your RS lease may produce roy- justing the threshold price in the pre-
alty-free the royalty suspension we vious year by the percentage that the
specify for your lease, even if the field implicit price deflator for the gross do-
to which we assign it is producing. mestic product, as published by the De-
(2) The royalty suspension we specify partment of Commerce, changed during
in the Notice of OCS Lease Sale for the calendar year.
your lease does not apply to any other (2) You must pay any royalty due
leases in the field to which we assign under this paragraph, plus late pay-
your RS lease. ment interest under 30 CFR 1218.54, no
493
§ 560.223 30 CFR Ch. V (7–1–18 Edition)
later than 90 days after the end of the assignment decision. The Director’s de-
period for which royalty is owed. cision is the final action of the Depart-
(3) Any production on which you ment of the Interior and is not subject
must pay royalty under this paragraph to appeal to the Interior Board of Land
will count toward the production vol- Appeals under 30 CFR part 590 and 43
ume determined under §§ 560.120 CFR part 4.
through 560.124. (b) If we establish a royalty suspen-
(c) If you must pay royalty on any sion volume for a field as a result of an
product (either oil or natural gas) for approved application for royalty relief
any period under paragraph (b) of this submitted for a pre-Act lease under 30
section, you must continue to pay roy- CFR part 203, then:
alty on that product during the next (1) Royalty-free production from
succeeding period of the same length your RS lease shares from and counts
until the arithmetic average of the as part of any royalty suspension vol-
daily closing NYMEX prices for that ume under § 560.114(d) for the field to
product for that period can be deter- which we assign your lease; and
mined. If the arithmetic average of the (2) Your RS lease may continue to
daily closing prices for that product for produce royalty-free up to the royalty
that period is less than the threshold suspension we specified for your lease,
price stipulated in the lease, you are even if the field to which we assign
entitled to a credit or refund of royal- your RS lease has produced all of its
ties paid for that period with interest royalty suspension volume.
under applicable law. (c) Your lease may share in a suspen-
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 sion volume larger than the royalty
FR 18175, Mar. 30, 2016] suspension with which we issued it and
to the extent we grant a larger volume
§ 560.223 How do I measure natural in response to an application by a pre-
gas production for a lease issued in Act lease submitted under 30 CFR part
a sale held after November 2000? 203. To share in any larger royalty sus-
You must measure natural gas pro- pension volume, you must file an appli-
duction subject to the royalty suspen- cation described in 30 CFR part 203
sion volume for your lease as follows: (§§ 203.71 and 203.83). In no case will roy-
5.62 thousand cubic feet of natural gas, alty-free production for your RS lease
measured according to 30 CFR part 250, be less than the royalty suspension
subpart L, equals one barrel of oil specified for your lease.
equivalent. [76 FR 64623, Oct. 18, 2011. Redesignated at 81
[76 FR 64623, Oct. 18, 2011. Redesignated at 81 FR 18175, Mar. 30, 2016]
FR 18175, Mar. 30, 2016]
BIDDING SYSTEM SELECTION CRITERIA
§ 560.224 How will royalty suspension
apply if BOEM assigns a lease § 560.230 What criteria does BOEM use
issued in a sale held after Novem- for selecting bidding systems and
ber 2000 to a field that has a pre- bidding system components?
Act lease? In analyzing the application of one of
(a) We will assign your lease that has the bidding systems listed in § 560.110 to
a qualifying well (under 30 CFR part tracts selected for any OCS lease sale,
250, subpart A) to an existing field or we may, at our discretion, consider the
designate a new field and will notify following purposes and policies. We
you and other affected lessees and op- recognize that each of the purposes and
erating rights holders in the field of policies may not be specifically appli-
that assignment. cable to the selection process for a par-
(1) Within 15 days of the final notifi- ticular bidding system or tract, or may
cation, you or any of the other affected present a conflict that we will have to
lessees or operating rights holders may resolve in the process of bidding sys-
file a written request with the Director tem selection. The order of listing does
for reconsideration, accompanied by a not denote a ranking.
Statement of Reasons. (a) Providing fair return to the Fed-

(2) The Director will respond in writ- eral Government;
ing either affirming or reversing the (b) Increasing competition;
494
(c) Ensuring competent and safe op- legal and business address or addresses,
erations; its legal form and status, and the
(d) Avoiding undue speculation; names and contact information of a
(e) Avoiding unnecessary delays in person or organization authorized to
exploration, development, and produc- act on the person’s behalf.
tion; (2) Any document(s) or information
(f) Discovering and recovering oil and required to obtain BOEM’s approval of
gas; an assignment or sublease, including
(g) Developing new oil and gas re- any form or instrument that creates or
sources in an efficient and timely man- transfers ownership of a lease interest.
ner; (3) Any document(s) or information
(h) Limiting the administrative bur- required to obtain BOEM’s approval of
dens on Government and industry; and your relinquishment of all, or any ali-
(i) Providing an opportunity to ex- quot part of your lease, as specified in
periment with various bidding systems
§ 556.1101 of this chapter.
to enable us to identify those most ap-
(4) Any document(s) creating, trans-
propriate for the satisfaction of the ob-
ferring or assigning economic inter-
jectives of the United States in OCS
lease sales. ests, as specified in §§ 556.715 and 556.808
of this chapter.
(5) Any document(s) related to a
Subpart C—Operating Allowances bond, U.S. Treasury note or other secu-
§ 560.300 Operating allowances. rity provided to BOEM, which is re-
quired to guarantee your compliance
Notwithstanding any other provision with terms and conditions of a lease.
in the regulations in this part, BOEM
(6) Any document(s) or information
may issue a lease containing an oper-
necessary to bid for an OCS lease.
ating allowance when so specified in
the final notice of sale and the lease. (7) Any forms, document(s) or infor-
The allowance amount or formula will mation necessary to determine worst
be specified in the final notice of sale case oil-spill discharge volume(s), or to
and in the lease. provide evidence demonstrating oil
spill financial responsibility, or to
[81 FR 18175, Mar. 10, 2016] guarantee such financial responsibility
or to comply with any other require-
Subpart D [Reserved] ments of the Oil Spill Financial Re-
sponsibility Program, as described in
Subpart E—Electronic Filings part 553 of this chapter.
(b) BOEM reserves the right to re-
SOURCE: 81 FR 18176, Mar. 30, 2016, unless quire the electronic filing of any docu-
otherwise noted. ment(s) or information addressed in
paragraph (a)(5) of this section upon a
§ 560.500 Electronic document and 90-day notice published in the FEDERAL
data transmissions. REGISTER; if BOEM mandates that you
(a) BOEM may notify you that it will transmit such document(s) or informa-
allow or request you to submit the fol- tion electronically, the FEDERAL REG-
lowing information electronically ISTER notice will specify the filing de-
through BOEM’s secure electronic fil- tails necessary to comply with this
ing system, through an alternate se- regulation.
cure electronic filing system supported (c) In the event BOEM sends docu-
and maintained by the Department, or ments to you in a secure electronic for-
through some other electronic filing mat, you may either return the docu-
system that BOEM has approved for ment(s) in an electronic format uti-
this purpose: lizing the same secure transmission
(1) Any document(s) or information mechanism or print the document(s)
described in the Qualifications section and return them.
of part 556 of this chapter, as specified (d) BOEM may electronically ac-
in subpart E. Such information would knowledge, approve, sign, or execute

include, but not be limited to, the offi- any document(s) referenced in this sec-
cial name of the qualifying person, its tion.
495
§ 560.501 30 CFR Ch. V (7–1–18 Edition)
§ 560.501 How long will the confiden- § 570.3 Definitions.

tiality of electronic document and
data transmissions be maintained? As used in this part, the following
terms shall have the following mean-
The confidentiality of any electroni- ing:
cally submitted information will be
Contract means any business agree-
maintained for the same proprietary
ment or arrangement (in which the
term that would apply to the cor-
responding non-electronic confidential parties do not stand in the relationship
submission, pursuant to § 556.104(b) of of employer and employee) between a
this chapter. lessee and any person which creates an
obligation to provide goods, services,
§ 560.502 Are electronically filed docu- facilities, or property.
ment transmissions legally binding? Lessee means the party authorized by
Any document or information ref- a lease, grant of right-of-way, or an ap-
erenced in § 560.500 which is submitted proved assignment thereof to explore,
to BOEM through a secure electronic develop, produce, or transport oil, gas,
filing system that is approved by or other minerals or materials in the
BOEM will be legally binding, without OCS pursuant to the Act and this part.
the need for a paper copy thereof. Person means a person or company,
including but not limited to, a corpora-
PART 570—NONDISCRIMINATION tion, partnership, association, joint
IN THE OUTER CONTINENTAL SHELF stock venture, trust, mutual fund, or
any receiver, trustee in bankruptcy, or
Sec. other official acting in a similar capac-
570.1 Purpose. ity for such company.
570.2 Application of this part. Subcontract means any business
570.3 Definitions. agreement or arrangement (in which
570.4 Discrimination prohibited.
the parties do not stand in the rela-
570.5 Complaint.
570.6 Process. tionship of employer and employee) be-
570.7 Remedies. tween a lessee’s contractor and any
person other than a lessee that is in
AUTHORITY: 43 U.S.C. 1863.
any way related to the performance of
SOURCE: 76 FR 64623, Oct. 18, 2011, unless any one or more contracts.
otherwise noted.
§ 570.4 Discrimination prohibited.
§ 570.1 Purpose.
The purpose of this part is to imple- No contract or subcontract to which
ment the provisions of section 604 of this part applies shall be denied to or
the OCSLA of 1978 which provides that withheld from any person on the
‘‘no person shall, on the grounds of grounds of race, creed, color, national
race, creed, color, national origin, or origin, or sex.
sex, be excluded from receiving or par-
§ 570.5 Complaint.
ticipating in any activity, sale, or em-
ployment, conducted pursuant to the (a) Whenever any person believes
provisions of * * * the Outer Conti- that he or she has been denied a con-
nental Shelf Lands Act.’’ tract or subcontract to which this part
applies on the grounds of race, creed,
§ 570.2 Application of this part. color, national origin, or sex, such per-
This part applies to any contract or son may complain of such denial or
subcontract entered into by a lessee or withholding to the Regional Director
by a contractor or subcontractor of a of the OCS Region in which such action
lessee after the effective date of these is alleged to have occurred. Any com-
regulations to provide goods, services, plaint filed under this part must be
facilities, or property in an amount of submitted in writing to the appropriate
$10,000 or more in connection with any Regional Director not later than 180
activity related to the exploration for days after the date of the alleged un-
or development and production of oil, lawful denial of a contract or sub-

gas, or other minerals or materials in contract which is the basis of the com-
the OCS under the Act. plaint.
496
(b) The complaint referred to in para- PART 580—PROSPECTING FOR

graph (a) of this section shall be ac- MINERALS OTHER THAN OIL,
companied by such evidence as may be GAS, AND SULPHUR ON THE
available to a person and which is rel- OUTER CONTINENTAL SHELF
evant to the complaint including affi-
davits and other documents. Subpart A—General Information
(c) Whenever any person files a com-
plaint under this part, the Regional Di- Sec.
rector with whom such complaint is 580.1 What definitions apply to this part?
filed shall give written notice of such 580.2 What is the purpose of this part?
filing to all persons cited in the com- 580.3 What requirements must I follow when
I conduct prospecting or research activi-
plaint no later than 10 days after re- ties?
ceipt of such complaint. Such notice 580.4 What activities are not covered by this
shall include a statement describing part?
the alleged incident of discrimination,
including the date and the names of Subpart B—How To Apply for a Permit or
persons involved in it. File a Notice
§ 570.6 Process. 580.10 What must I do before I may conduct

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Title 30

Revised as of July 1, 2018

Containing a codification of documents

Published by the Office of the Federal Register

Legal Status and Use of Seals and Logos

Use of ISBN Prefix

U.S. GOVERNMENT PUBLISHING OFFICE

U.S. Superintendent of Documents • Washington, DC 20402–0001

Chapter II—Bureau of Safety and Environmental Enforcement,

Chapter IV—Geological Survey, Department of the Interior .......... 335

Chapter V—Bureau of Ocean Energy Management, Department of

Table of CFR Titles and Chapters ....................................................... 635

Alphabetical List of Agencies Appearing in the CFR ......................... 655

List of CFR Sections Affected ............................................................. 665

To cite the regulations in

OMB CONTROL NUMBERS

Title 30—MINERAL RESOURCES is composed of three volumes. The parts in these

CHAPTER II—Bureau of Safety and Environmental Enforce-

SUBCHAPTER A—MINERALS REVENUE MANAGEMENT

250 Oil and gas and sulphur operations in the Outer

290 Appeal procedures ................................................... 327

pipelines under the Outer Continental Shelf

PARTS 200–202 [RESERVED] 203.43 To which production do I apply the

royalty relief would my lease earn? field or project?

BOEM Supplement to a DOCD, ap- which no royalties are due on produc-

additional production resulting from that meets the requirements to be a

Sunk costs for an expansion or develop- (c) Under 43 U.S.C. 1337(a)(3)(C), we

If you have a lease . . . And if you . . . Then we may grant you . . .

(1) Administrative information report ..................................................... X X X X

(1) Fabricator’s confirmation report ....................................................... ...................... X X X

(e) The following table indicates by the characteristics of approved royalty

(1) One-half pre-application effective lease rate on the qualifying

(f) The following table indicates by circumstances under which we dis-

(1) Average NYMEX price for last 12 months is at least 25 percent

(g) The following table indicates by scribe, circumstances under which we

(1) If recipient requests ......................................................................... X X X X

mation collection requirements in this

(1) An original well, 35 BCF.

quirements of § 203.35 and the price con-

following table in BCF or MCF as pre-

(i) An original well or a sidetrack with a sidetrack measured 10 BCF.

§ 203.33 To which production do I (i) From qualified wells on the non-

(other than test production). lease not be applied?

(a) To production from completions (2) If you produced from a qualified

December 18, 2008; and

A price threshold in year 2007 dollars of . . . Applies to . . .

If your lease has not . . . And if it later . . . Then your lease . . .

(1) An original well or a sidetrack with a perforated interval the 0 BCF.

200 meters deep; or BSEE-approved unit. Under the unit

lease A produces 12 BCF and the unitized

Example 1: If you drill a certified unsuc-

ing the threshold price in the previous the calendar year.

will reduce the pre-application effec- renouncement of the relief arrange-

cording to § 203.81. cation on a field within 180 days, evalu-

§ 203.67 What economic criteria must I § 203.68 What pre-application costs

covery well on each lease, economic.

§ 203.69 If my application is approved, (b) For development projects, any re-

(f) If your application includes pre- distribution of known recoverable re-

entitled to share the royalty suspen-

part of our original determination, and preting old data);

will evaluate your application under gible development costs associated

expenditures defined in § 203.89(b) in- § 203.78 Do I keep relief approved by

(1) Pre-Act leases in the GOM, set by statute.