OCS Rules Published
(April 2000)
After many years of work, the USCG published a Notice of
Proposed Rulemaking (NPRM) for the Outer Continental Shelf Activities, 33 CFR
Subchapter N, in December. This subchapter regulates oil and mineral
development and production activities on the U.S. Outer Continental Shelf (OCS).
It includes Mobile Offshore Drilling Units (MODU), platforms, Floating
Production Systems (FPSs), and would add a host of vessels providing various
support activities.
A major rewrite of this subchapter was last done nearly 20
years ago, and is considered long overdue because of changes in technology,
particularly of the last ten years. This new proposal has been written
and reorganized to make the rules more readable and understandable by the
general public, following the Presidential memorandum titled Plain Language in
Government Writing. In general terms, it would appear they have been
reasonably successful.
There is, however, a curious by-product of the plain
language: We who have become expert in reading regulations seem to be having
trouble obtaining a detailed understanding of the overall proposed rule
package. Those of us who have studied rules for 30 or 40 years are
having problems getting to the core of truth within the rules. Having said
that, it still seems worthwhile to have the rules in understandable English
rather than typical USCG technical jargon.
In an attempt to obtain a better feel for how the industry
is responding to the proposal, the docket was examined. The docket is
the repository of all public comments concerning the proposal. To my
surprise, it led me to conclude others are having the same problems with
understanding the proposal. The range of comments seems quite limited
and focused on specific issues of concern. There are no comments
addressing the broad spectrum of the proposal.
The major changes in this proposal includes areas of
operations, structural fire protection, lifesaving and fire protection
equipment, workplace safety and health, training, vessels engaged in OCS
activities, and accommodations on manned fixed facilities.
The most remarkable thing about the project is the lack of
proposed rules to govern manning and licensing of FPSs. For more than 10
years the USCG has been requiring FPSs to be manned with licensed personnel
when no such licenses exist in regulations.
The USCG has been operating by policy alone in an area
clearly requiring regulations. The USCG has basically been requiring modified
MODU licenses and manning on FPSs. That is not to say the USCG is not
responding reasonably to the needs of industry, but only that they have no
regulations to do what they are doing.
Such proposed new rules should have been included within
this NPRM. The lack of inclusion calls to question how the USCG intends to
handle the licensing and manning issues. According to the new proposal, the
person in charge of an FPS must be designated in writing.
No licensing requirements. Curious! Is this
really all the USCG will require with respect to licenses and manning?
Certainly, existing MODU license rules are inapplicable.
Workplace safety and health rules have been proposed for a full battery of
occupational safety rules concerning confined space entry, hearing, fall
reduction, radiation exposure, personnel training, offshore competent person
and hazard communication among others. These programs are all extensive and
quite comprehensive.
There are many knowledgeable about various elements of the
industry that would say they go too far, at least in their current form. The
most curious part of these workplace safety provisions is they will also apply
to other vessels engaged in activities on the OCS such as crew boats, offshore
supply vessels and industrial vessels working on the OCS.
If this inclusion comes to pass it is not clear how the
USCG will enforce this element of the rules, since under the OCS Lands Act, no
violation of the act occurs until the government identifies the non-conformity
and puts the violator on written notice and provides an opportunity to correct
the discrepancy.
The USCG is not used to operating in this manner and may
have some problems making the required adjustment. The proposal invents a new
term, Mobile Inland Drilling Units (MIDUs). These units may operate in less
than 30 ft. of water within 12 miles offshore in the Gulf of Mexico. They will
need a Letter of Compliance from the local USCG Marine Safety Office and will
have to comply with the firefighting, fire protection and lifesaving
requirements for offshore platforms.
This may not be as easy as it sounds under this proposal
because the proposal adds structural fire protection requirements for fixed
platforms. These requirements are similar to the requirements applicable to
shore side oil field fire protection schemes with the addition of a firewall
between the accommodations and the well bores.
There is still opportunity to comment, as the public
comment period on the NPRM has been extended until July 5, 2000.
This is an extremely complex and far-reaching proposal.
Various elements of the offshore industry will attempt to have the proposal
reshaped, to prevent their specific constituency from being adversely
impacted. It should be quite a free-for-all.
One can only watch the process unfold over the next year or
two to see what the end product will be.
