80_FR_76039 80 FR 75806 - Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Decommissioning Costs

80 FR 75806 - Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Decommissioning Costs

DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement

Federal Register Volume 80, Issue 233 (December 4, 2015)

Page Range75806-75811
FR Document2015-30585

This rule amends the regulations to require lessees and owners of operating rights to submit summaries of actual decommissioning expenditures incurred after completion of certain decommissioning activities for oil and gas and sulphur operations on the Outer Continental Shelf. This information will help BSEE to better estimate future decommissioning costs related to OCS leases, rights-of- way, and rights of use and easement.

Federal Register, Volume 80 Issue 233 (Friday, December 4, 2015)
[Federal Register Volume 80, Number 233 (Friday, December 4, 2015)]
[Rules and Regulations]
[Pages 75806-75811]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30585]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2015-0012; 15XE1700DX EEEE500000 EX1SF0000.DAQ000]
RIN 1014-AA24


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Decommissioning Costs

AGENCY:  Bureau of Safety and Environmental Enforcement, Interior.

ACTION:  Final rule.

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SUMMARY:  This rule amends the regulations to require lessees and 
owners of operating rights to submit summaries of actual 
decommissioning expenditures incurred after completion of certain 
decommissioning activities for oil and gas and sulphur operations on 
the Outer Continental Shelf. This information will help BSEE to better 
estimate future decommissioning costs related to OCS leases, rights-of-
way, and rights of use and easement.

DATES:  This final rule becomes effective on January 4, 2016.

FOR FURTHER INFORMATION CONTACT: Lakeisha Harrison, Chief, Regulations 
and Standards Branch, Lakeisha.Harrison@bsee.gov, (703) 787-1552.

SUPPLEMENTARY INFORMATION: 

Table of Contents

Executive Summary
I. Background
II. What This Final Rule Covers
III. Differences Between Proposed Rule and Final Rule
IV. Comments and Responses
V. Procedural Matters

Executive Summary

    This final rule requires lessees and owners of operating rights 
(collectively, ``lessees'') to submit to the Bureau of Safety and 
Environmental Enforcement (BSEE) summaries of actual expenditures for 
decommissioning of wells, platforms and other facilities on the Outer 
Continental Shelf (OCS) that are required under BSEE's existing 
regulations. This information will help BSEE to better estimate future 
decommissioning costs related to OCS leases, rights-of-way, and rights 
of use and easement. The Bureau of Ocean Energy Management (BOEM) may 
then use BSEE's future decommissioning cost estimates to set necessary 
financial assurance levels to minimize or eliminate the possibility 
that the government will incur decommissioning liability.
    In a proposed rule published on May 27, 2009, the Minerals 
Management Service (BSEE's predecessor agency) proposed to require 
lessees to submit information (including supporting documentation) 
regarding expenditures actually incurred for certain mandatory 
decommissioning activities within 30 days of completion of each 
activity. Based on BSEE's review of public comments on the proposed 
rule, the final rule generally requires only certified summaries of the 
actual expenditures (without other supporting documentation) for those 
decommissioning activities and extends the time period for submission 
of such reports to 120 days after completion of each such activity. 
BSEE may, however, require additional supporting information for 
specific decommissioning costs on a case-by-case basis.

I. Background

    On May 27, 2009, the former Minerals Management Service (MMS) 
published a Notice of Proposed Rulemaking in the Federal Register 
(Leasing of Sulphur or Oil and Gas and Bonding Requirements in the 
Outer Continental Shelf) in order to update and streamline the existing 
OCS leasing regulations under the Outer Continental Shelf Lands Act 
(OCSLA) and to clarify implementation of the Federal Oil and Gas 
Royalty Simplification and Fairness Act of 1996 (see 74 FR 25177). In 
2010 and 2011, the Secretary of the Interior (Secretary) reorganized 
MMS into three bureaus: BSEE, BOEM, and the Office of Natural Resources 
Revenue. The Secretary then delegated to BSEE certain responsibilities 
under OCSLA that were formerly held by MMS, including responsibilities 
for overseeing decommissioning.\1\ BSEE's primary purpose as an agency 
is to promote safety, protect the environment, and ensure responsible 
development and conservation of offshore oil and natural gas resources 
through vigorous regulatory oversight and enforcement.
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    \1\ For convenience, hereafter we use the term ``BSEE'' rather 
than ``MMS'' in this document, where appropriate, when referring to 
past actions of MMS.
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    This final rule completes the rulemaking for one of the issues 
covered by the proposed rule that is now under BSEE's authority. 
Specifically, this final rule addresses the proposed requirement that 
lessees submit information regarding actual expenditures incurred for 
certain decommissioning activities required under the existing 
regulations.
    The other issues covered by the proposed rule now under BSEE's 
authority include proposed consolidation of mechanisms for maintaining 
and extending leases past their primary terms and a proposed 
requirement for submittal of pipeline-related reports after approval of 
an assignment or change of designated operator (see 74 FR 25177-25178). 
BSEE may issue a final rule in the future regarding the proposed 
consolidation of mechanisms for extending and maintaining leases beyond 
their primary terms. Similarly, BSEE will decide at a later date 
whether to finalize the proposed pipeline report requirement or to 
address that issue again, potentially in a broader rulemaking under 30 
CFR part 250, Subpart J--Pipelines and Pipeline Rights-of-Way. 
Therefore, these two issues are not included in this final rule. In 
addition, this final rule does not include sections of the proposed 
rule that now fall under BOEM's authority.

 II. What This Final Rule Covers

    This final rule revises portions of BSEE's regulations at 30 CFR 
part 250, Subpart Q--Decommissioning Activities. Specifically, the 
final rule requires lessees to submit certified summaries of actual 
decommissioning expenditures incurred for certain decommissioning 
activities that are required under Subpart Q (i.e., plugging and 
abandonment of wells, removal of platforms and other facilities, and 
site clearance) \2\ within 120 days of completion of each such 
activity. This information will help BSEE better estimate future 
decommissioning costs related to OCS leases, rights-of-way, and rights 
of use and easement. BSEE's decommissioning cost estimates may then be 
used by BOEM to set financial assurance levels necessary to minimize

[[Page 75807]]

or eliminate the possibility that the government will incur 
decommissioning liability.
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    \2\ For example, Sec. Sec.  250.1710 and 250.1711 require wells 
to be plugged within a year after termination of a lease or when 
ordered by BSEE, respectively. Section 250.1725 requires platforms 
and other facilities to be removed within a year of termination of a 
lease unless the lessee has received approval to maintain the 
facility to conduct other activities. Section 250.1740 requires 
verification that a site has been cleared of obstructions within 60 
days after a well has been plugged or a platform or other facility 
has been removed.
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    The proposed rule would have added new reporting provisions to 
three separate existing regulatory provisions--Sec. Sec.  250.1717, 
250.1729 and 250.1743--that require submission of decommissioning 
information (including supporting documentation) regarding well 
plugging and abandonment, removal of platforms and other facilities, 
and site clearance, respectively. BSEE has determined, however, that 
adding the decommissioning cost reporting requirements to three 
separate sections would be unnecessarily redundant and potentially 
confusing. Therefore, this final rule adds two new paragraphs--(h) and 
(i)--containing the decommissioning cost reporting requirements to the 
existing Sec.  250.1704, which already provides other decommissioning 
applications and reporting requirements. This approach is intended to 
prevent unnecessary repetition and to provide for consistent cost 
reporting procedures for all of the specified decommissioning 
activities.

III. Differences Between Proposed Rule and Final Rule

    The following is a discussion of differences between the proposed 
rule and the final rule with regard to 30 CFR part 250.
    Subpart Q--Decommissioning Activities--The proposed rule would have 
amended Sec. Sec.  250.1717, 250.1729 and 250.1743 to require 
submission of information, including supporting documentation, on 
expenditures for the decommissioning activities previously described in 
parts II and III. Instead of amending those sections, however, the 
final rule adds new paragraphs (h) and (i) to Sec.  250.1704. Those new 
paragraphs require a lessee to submit to BSEE, after completing the 
specified decommissioning activities, a certified summary of actual 
decommissioning expenditures and, if requested by the Regional 
Supervisor, additional information to support the summary. The addition 
of paragraphs (h) and (i) to Sec.  250.1704 eliminates the need to 
insert repetitive language in Sec. Sec.  250.1717, 250.1729, and 
250.1743, and results in a more consolidated regulation, with 
consistent reporting procedures applicable to all of the specified 
decommissioning activities.
    Under the proposed rule, BSEE would have expected supporting 
documentation to include a statement certifying the truth and accuracy 
of the reported costs. The final rule addresses that expectation, and 
eliminates any potential ambiguity, by expressly requiring that cost 
summaries include such a certification statement.
    In addition, after consideration of comments received regarding 
potential burdens on lessees from the proposed requirement for 
submission of supporting documentation for each expenditure, the final 
rule requires that lessees submit, to the appropriate BSEE Regional 
Supervisor, only a certified summary of decommissioning 
expenditures.\3\ The final rule requires additional supporting 
information only if the appropriate Regional Supervisor specifically 
requires it on a case-by-case basis.
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    \3\ As a practical matter, BSEE recognizes that a designated 
operator may submit the required summary of decommissioning costs on 
behalf of a lessee.
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    Finally, based on BSEE's review of the comments on the proposed 
rule, the final rule requires that lessees submit the summary of actual 
decommissioning costs within 120 days of completion of those 
decommissioning activities, instead of the proposed requirement for 
reporting within 30 days. BSEE has determined that 120 days constitutes 
a more appropriate period for lessees to collect, summarize, and submit 
this information.

IV. Comments and Responses

    In response to the proposed rule, BSEE received three comments, all 
from representatives of the offshore oil and gas industry, related to 
the provisions for reporting costs of decommissioning activities. The 
full text of the relevant comments can be viewed at: 
www.regulations.gov. To access those comments, enter MMS-2007-OMM-0069 
in the Search box. A summary of the comments, with BSEE's responses, 
follows.
    Comment: One industry commenter stated that the proposed addition 
of Sec. Sec.  250.1717(e), 250.1729(d), and 250.1743(b)(8) to the 
regulations, requiring submittal of actual expenditures for every 
instance of site clearance, platform removal and well plugging, would 
be unduly burdensome in light of the potential benefits. The commenter 
stated that, while BSEE may need some access to accurate 
decommissioning cost data, there are alternatives available to obtain 
the same information, although the commenter did not state what those 
alternatives might be. The commenter also asserted that the proposed 
provisions gave no guidance as to exactly what expenditures should be 
included from an accounting perspective, and that the proposal to 
require each lessee to account for such expenses separately would 
diminish the usefulness of the information provided to BSEE. The 
commenter also stated that lessees are willing to work with BSEE on a 
case-by-case basis to provide specific cost information as necessary. 
Finally, the commenter stated that, to the extent any trade secret, or 
confidential or proprietary information might be included in 
submissions to BSEE, the proposed rule did not include a mechanism to 
protect that information from disclosure.
    Response: Contrary to the commenter's assertion, BSEE does not have 
ready access to other sources of information for actual expenditures 
incurred for decommissioning activities. As previously explained, BSEE 
needs and will use decommissioning cost data to estimate future 
decommissioning costs, which BOEM will use to set the amount of 
required bonds and other forms of financial security. However, while 
the final rule provides that a lessee must report actual 
decommissioning expenditures incurred for the specified decommissioning 
activities, it now requires, in general, that the lessee submit only a 
summary of such expenditures rather than specific supporting 
documentation for each expenditure. The information needed to prepare 
such a summary is readily available to industry as a matter of business 
practice, and supplying this summary information does not constitute an 
unreasonable burden.
    In addition, the final rule provides examples of activities 
(including, but not limited to, expenses incurred for the use of rigs, 
vessels, equipment, supplies and materials, transportation of any kind, 
personnel, and services) associated with the specified decommissioning 
activities for which summaries of actual expenditures incurred must be 
submitted.
    While the final rule does not include the proposed requirement to 
submit supporting documentation for each decommissioning expenditure, 
the final rule provides that BSEE may request additional information on 
a case-by-case basis to support the summary, as suggested by the 
commenter. However, in such cases, BSEE will minimize the burden by 
working directly with the lessee to determine what specific supporting 
information is required.\4\ In

[[Page 75808]]

addition, by working together on a case-by-case basis whenever 
supporting information is requested, BSEE and the lessee can help 
reduce the need to submit any confidential information. Any 
confidential information that is provided will be handled in accordance 
with the Freedom of Information Act (FOIA) (5 U.S.C. 552), the 
Department of the Interior's (DOI's) FOIA regulations (43 CFR part 2), 
and section 26 of OCSLA, 43 U.S.C. 1352.
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    \4\ Although BSEE does not anticipate that such supporting 
information will be needed often, there may be situations (e.g., 
when a lessee's summary reflects decommissioning expenditures 
substantially higher or lower than other lessees' summaries for 
similar activities in the same area) where additional supporting 
information would be appropriate.
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    Comment: Another commenter also stated that the proposed 
requirement to submit all ``expenses'' with ``supporting 
documentation'' would impose a significant burden. Further, the 
commenter observed that since the proposed rule provided no guidelines 
on what constitutes an ``expense,'' BSEE likely would receive 
inconsistent reporting from lessees. The commenter's preference is for 
BSEE to work directly with lessees to develop specific information 
requirements and to allow the lessees to exclude confidential or 
proprietary information.
    Response: As previously explained, BSEE needs information regarding 
actual decommissioning expenditures incurred by lessees in order to 
appropriately estimate future costs and minimize the government's risk 
of potential decommissioning liability. However, since the final rule 
typically will require only a summary of actual decommissioning 
expenditures, the overall potential burden on lessees will likely be 
less than under the proposed rule, and the summary will be less likely 
to reflect confidential or proprietary information. In addition, as 
suggested by two commenters, BSEE will work directly with lessees on a 
case-by-case basis, as necessary, whenever additional supporting 
information may be required in order to avoid or minimize the potential 
need for submission of any confidential information.
    Finally, since the final rule now lists several examples of the 
types of expenditures that must be included in the summaries, and since 
BSEE will work with individual lessees to determine what additional 
supporting information, if any, is needed in specific cases, the 
possibility of inconsistent reporting suggested by the commenter will 
be minimized. In addition, BSEE expects to issue further guidance to 
assist lessees in preparing expenditure summaries, such as using cost 
classifications and accounting methods consistent with current OCS 
joint interest summary form billing standards and practices.
    Comment: A third commenter stated that BSEE did not need cost data 
with supporting documentation to help assess bonding requirements. 
Rather, the commenter suggested that BSEE could request operators to 
certify the cost information instead of requiring supporting 
documentation.
    Response: As suggested by the commenter, instead of requiring 
supporting information in every case, the final rule requires that a 
lessee submit only a summary of its decommissioning costs, with a 
certification statement by an authorized company representative. 
Additional supporting information is required only when the Regional 
Supervisor requests such information on a case-by-case basis.

V. Procedural Matters

Regulatory Planning and Review (Executive Orders 12866 and 13563)

    Executive Order 12866 (E.O. 12866) provides that the Office of 
Management and Budget (OMB), Office of Information and Regulatory 
Affairs (OIRA), will review all significant rules. BSEE has determined 
that this final rule is not a significant regulatory action as defined 
by section 3(f) of E.O. 12866 because:

--It is not expected to have an annual effect on the economy of $100 
million or more;
--It will not adversely affect in a material way the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities;
--It will not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency;
--It will not alter the budgetary impact of entitlements, grants, user 
fees, or loan programs, or the rights or obligations of their 
recipients; and
--It does not raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
E.O. 12866.

    Accordingly, BSEE has not prepared an economic analysis, and OIRA 
has not reviewed this rule.
    Executive Order 13563 (E.O. 13563) reaffirms the principles of E.O. 
12866 while calling for improvements in the Nation's regulatory system 
to promote predictability, to reduce uncertainty, and to use the best, 
most innovative, and least burdensome tools for achieving regulatory 
ends. E.O. 13563 directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. It also emphasizes that 
regulations must be based on the best available science and that the 
rulemaking process must allow for public participation and an open 
exchange of ideas. BSEE developed this rule in a manner consistent with 
these requirements.

Regulatory Flexibility Act (RFA)

    BSEE certifies that this final rule will not have a significant 
economic effect on a substantial number of small entities under the RFA 
(5 U.S.C. 601 et seq.). This rule potentially affects offshore lessees 
who perform decommissioning activities under 30 CFR part 250. This 
could include about 130 active companies. Offshore lessees fall under 
the Small Business Administration's North American Industry 
Classification System (NAICS) codes 211111 (Crude Petroleum and Natural 
Gas Extraction) and 213111 (Drilling Oil and Gas Wells). For these 
NAICS code classifications, a small company is one with fewer than 500 
employees. Based on these criteria, an estimated 90 (or 69 percent) of 
the active companies are considered small. Thus, this final rule would 
affect a substantial number of small entities.
    However, because the final rule requires only summary reports of 
actual expenditures related to performance of decommissioning 
activities, it will not impose significant new costs or burdens on 
offshore oil and gas companies. Accordingly, this rule will not have a 
significant economic effect on a substantial number of small entities, 
and BSEE is not required by the RFA to prepare a regulatory flexibility 
analysis for this rule.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the actions of BSEE, call 1-888-
734-3247. You may comment to the Small Business Administration (SBA) 
without fear of retaliation. Allegations of discrimination/retaliation 
filed with the SBA will be investigated for appropriate action.

[[Page 75809]]

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under the SBREFA (5 U.S.C. 801 et 
seq.). This rule will not:

--Have an annual effect on the economy of $100 million or more;
--Cause a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; or
--Have significant adverse effects on competition, employment, 
investment, productivity, innovation, or the ability of U.S.-based 
enterprises to compete with foreign-based enterprises.

Unfunded Mandates Reform Act of 1995

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule also will not have a significant or unique effect on 
state, local, or tribal governments or the private sector. Thus, a 
statement containing the information required by the Unfunded Mandates 
Reform Act (2 U.S.C. 1531 et seq.) is not required.

Takings Implication Assessment (Executive Order 12630)

    Under the criteria in Executive Order 12630, this rule will not 
have significant takings implications. The rule is not a governmental 
action capable of interference with constitutionally protected property 
rights. Therefore, a Takings Implication Assessment is not required.

Federalism (Executive Order 13132)

    Under the criteria in Executive Order 13132, this rule does not 
have federalism implications. This rule does not substantially and 
directly affect the relationship between the Federal and State 
governments. To the extent that State and local governments have a role 
in OCS activities, this rule does not affect that role. Accordingly, a 
Federalism Assessment is not required.

Civil Justice Reform (Executive Order 12988)

    This rule complies with the requirements of Executive Order 12988 
(E.O. 12988), Civil Justice Reform (February 7, 1996). Specifically, 
this rule:

--Meets the criteria of section 3(a) of E.O. 12988 requiring that all 
regulations be reviewed to eliminate drafting errors and ambiguity and 
be written to minimize litigation; and
--Meets the criteria of section 3(b)(2) of E.O. 12988 requiring that 
all regulations be written in clear language and contain clear legal 
standards.

Consultation With Indian Tribal Governments (Executive Order 13175)

    We have evaluated this rule under the Department's tribal 
consultation policy and under the criteria in Executive Order 13175 and 
have determined that it has no substantial direct effects on federally 
recognized Indian tribes, or on the relationship or distribution of 
power and responsibilities between the Federal Government and Indian 
tribes, and that consultation under the Department's tribal 
consultation policy is not required.

Paperwork Reduction Act (PRA)

    This rule contains new information collection (IC) requirements and 
submission to the OMB under the PRA of 1995 (44 U.S.C. 3501 et seq.) is 
required. The OMB has approved the IC in this rule under OMB Control 
Number 1014-0029, expiration November 30, 2018. We estimate the annual 
burden associated with this IC to be 820 hours per year.
    The title of the collection of information for this rule is 30 CFR 
part 250, subpart Q, Decommissioning Costs. Potential respondents 
include approximately 130 OCS lessees. Responses to this collection are 
mandatory. The frequency of response is on occasion. The IC does not 
include questions of a sensitive nature. BSEE will protect confidential 
commercial and proprietary information according to section 26 of OCSLA 
(43 U.S.C. 1352), FOIA (5 U.S.C. 552) and DOI's implementing 
regulations (43 CFR part 2), and according to 30 CFR 250.197 (Data and 
information to be made available to the public or for limited 
inspection). Once the requirements of this rulemaking have been 
codified, BSEE will consolidate these additional burden hours into the 
primary collection for 30 CFR part 250, Subpart Q, under OMB Control 
Number 1014-0010 (expiration 10/31/16; 29,437 burden hours and 
$2,152,644 non-hour cost burdens).
    We received three comments stating that the proposed requirements 
would impose a significant burden. Although we reduced the regulatory 
requirements for this final rule, as previously described, we felt it 
was prudent to use the same number of burden hours as in the proposed 
rule. We will adjust the burden hours accordingly in the IC renewal 
when industry has had enough experience with the final rule to 
determine the actual burden associated with these requirements. Also, 
based on comments received, there are some regulatory text revisions, 
which consist of the following. The final rule:

--Requires lessees to submit to BSEE only a summary of actual 
decommissioning expenditures incurred for each decommissioning activity 
(unless additional information is specifically required by the BSEE 
Regional Supervisor on a case-by-case basis); and
--Changes the summary submission period from 30 days to 120 days after 
completion of each decommissioning activity, giving industry more time 
to comply.

    There are no non-hour cost burdens associated with this rulemaking. 
The following table is a breakdown of the burden estimate:

                                                  Burden Table
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                                         Reporting and
       Citation 30 CFR 250               recordkeeping         Hour burden    Average number of    Annual burden
                                         requirements                          annual responses        hours
----------------------------------------------------------------------------------------------------------------
Proposed 250.1717(e); 1729(d);     Submit to the Regional                 1  820 summaries/                  820
 1743(b)(8).                        Supervisor, within 120                    additional info.
Final 250.1704(h), (i)...........   days after completion
                                    of each identified
                                    decommissioning
                                    activity, a summary of
                                    expenditures incurred
                                    and subsequently, if
                                    requested, any
                                    additional information
                                    that will support and/
                                    or verify the summary.
----------------------------------------------------------------------------------------------------------------
Final 250.1704(h)................  Submit certified            Exempt from the PRA under 5 CFR                 0
                                    statement attesting to              1320.3(h)(1).
                                    accuracy of
                                    expenditures incurred
                                    data.
                                                            ----------------------------------------------------

[[Page 75810]]

 
    Total........................  ........................  ..............  820................             820
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    An agency may not conduct or sponsor, and you are not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number. The public may comment at any time on the 
accuracy of the IC burden in this rule and may submit any comments to 
the Department of the Interior, Bureau of Safety and Environmental 
Enforcement, Attention: Regulations and Standards Branch, VA-ORP, 45600 
Woodland Road, Sterling, VA 20166.

National Environmental Policy Act of 1969 (NEPA)

    This rule meets the criteria set forth in 43 CFR 46.210(i) and 516 
Departmental Manual (DM) 15.4C(1) for a categorical exclusion, because 
it involves modification of existing regulations, the impacts of which 
would be limited to administrative or economic effects with minimal 
environmental impacts.
    We also analyzed this rule to determine if it involves any of the 
extraordinary circumstances set forth in 43 CFR 46.215 that would 
require an environmental assessment or an environmental impact 
statement for actions otherwise eligible for a categorical exclusion. 
We concluded that this rule does not meet any of the criteria for 
extraordinary circumstances.

Data Quality Act

    In developing this rule, we did not conduct or use a study, 
experiment, or survey requiring peer review under the Data Quality Act 
(44 U.S.C. 3516 et seq., Public Law 106-554, app. C Sec.  515, 114 
Stat. 2763, 2763A-153-154).

Effects on the Nation's Energy Supply (Executive Order 13211)

    This rule is not a significant energy action under Executive Order 
13211 (E.O. 13211) because:

--It is not a significant regulatory action under E.O. 12866;
--It is not likely to have a significant adverse effect on the supply, 
distribution or use of energy; and
--It has not been designated as a significant energy action by the 
Administrator of OIRA.

List of Subjects in 30 CFR Part 250

    Administrative practice and procedure, Continental shelf, 
Environmental impact statements, Environmental protection, 
Investigations, Oil and gas exploration, Penalties, Reporting and 
recordkeeping requirements, Sulphur.

    Dated: August 28, 2015.
Janice M. Schneider,
Assistant Secretary, Land and Minerals Management.

    Editorial note: This document was received for publication by 
the Office of Federal Register on November 30, 2015.

    For the reasons stated in the preamble, BSEE amends 30 CFR part 250 
as follows:

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for part 250 continues to read as follows:

    Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 43 U.S.C. 1334.


0
2. Amend Sec.  250.1704 by revising the section heading and the 
introductory text, and by adding new paragraphs (h) and (i) to the 
Decommissioning Applications and Reports Table, to read as follows:


Sec.  250.1704  What decommissioning applications and reports must I 
submit and when must I submit them?

    You must submit decommissioning applications, receive approval of 
those applications, and submit subsequent reports according to the 
requirements and deadlines in the following table.
* * * * *

             Decommissioning Applications and Reports Table
------------------------------------------------------------------------
 Decommissioning applications
          and reports             When to submit        Instructions
------------------------------------------------------------------------
 
                              * * * * * * *
(h) A certified summary of      Within 120 days    Submit to the
 expenditures for permanently    after completion   Regional Supervisor
 plugging any well, removal of   of each            a complete summary
 any platform or other           decommissioning    of expenditures
 facility, and clearance of      activity           actually incurred
 any site after wells have       specified in       for each
 been plugged or platforms or    this paragraph.    decommissioning
 facilities removed.                                activity (including,
                                                    but not limited to,
                                                    the use of rigs,
                                                    vessels, equipment,
                                                    supplies and
                                                    materials;
                                                    transportation of
                                                    any kind; personnel;
                                                    and services).
                                                    Include in, or
                                                    attach to, the
                                                    summary a certified
                                                    statement by an
                                                    authorized
                                                    representative of
                                                    your company
                                                    attesting to the
                                                    truth, accuracy and
                                                    completeness of the
                                                    summary. The
                                                    Regional Supervisor
                                                    may provide specific
                                                    instructions or
                                                    guidance regarding
                                                    how to submit the
                                                    certified summary.
(i) If requested by the         Within a           The Regional
 Regional Supervisor,            reasonable time    Supervisor will
 additional information in       as determined by   review the summary
 support of any                  the Regional       and may provide
 decommissioning activity        Supervisor.        specific
 expenditures included in a                         instructions or
 summary submitted under                            guidance regarding
 paragraph (h) of this section.                     the submission of
                                                    additional
                                                    information
                                                    (including, but not
                                                    limited to, copies
                                                    of contracts and
                                                    invoices), if
                                                    requested, to
                                                    complete or
                                                    otherwise support
                                                    the summary.
------------------------------------------------------------------------


[[Page 75811]]

[FR Doc. 2015-30585 Filed 12-3-15; 8:45 am]
 BILLING CODE 4310-VH-P



                                           75806             Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations

                                             Dated: November 13, 2015.                             are required under BSEE’s existing                     gas resources through vigorous
                                           Harriet Tregoning,                                      regulations. This information will help                regulatory oversight and enforcement.
                                           Principal Deputy Assistant Secretary for                BSEE to better estimate future                            This final rule completes the
                                           Community Planning and Development.                     decommissioning costs related to OCS                   rulemaking for one of the issues covered
                                             Dated: Approved on November 24, 2015.                 leases, rights-of-way, and rights of use               by the proposed rule that is now under
                                                                                                   and easement. The Bureau of Ocean                      BSEE’s authority. Specifically, this final
                                           Nani A. Coloretti,
                                                                                                   Energy Management (BOEM) may then                      rule addresses the proposed
                                           Deputy Secretary.                                                                                              requirement that lessees submit
                                                                                                   use BSEE’s future decommissioning cost
                                           [FR Doc. 2015–30473 Filed 12–3–15; 8:45 am]                                                                    information regarding actual
                                                                                                   estimates to set necessary financial
                                           BILLING CODE 4210–67–P                                  assurance levels to minimize or                        expenditures incurred for certain
                                                                                                   eliminate the possibility that the                     decommissioning activities required
                                                                                                   government will incur decommissioning                  under the existing regulations.
                                           DEPARTMENT OF THE INTERIOR                              liability.                                                The other issues covered by the
                                                                                                      In a proposed rule published on May                 proposed rule now under BSEE’s
                                           Bureau of Safety and Environmental                      27, 2009, the Minerals Management                      authority include proposed
                                           Enforcement                                             Service (BSEE’s predecessor agency)                    consolidation of mechanisms for
                                                                                                   proposed to require lessees to submit                  maintaining and extending leases past
                                           30 CFR Part 250                                         information (including supporting                      their primary terms and a proposed
                                           [Docket ID: BSEE–2015–0012; 15XE1700DX                  documentation) regarding expenditures                  requirement for submittal of pipeline-
                                           EEEE500000 EX1SF0000.DAQ000]                            actually incurred for certain mandatory                related reports after approval of an
                                                                                                   decommissioning activities within 30                   assignment or change of designated
                                           RIN 1014–AA24                                                                                                  operator (see 74 FR 25177–25178). BSEE
                                                                                                   days of completion of each activity.
                                                                                                   Based on BSEE’s review of public                       may issue a final rule in the future
                                           Oil and Gas and Sulphur Operations in
                                                                                                   comments on the proposed rule, the                     regarding the proposed consolidation of
                                           the Outer Continental Shelf—                                                                                   mechanisms for extending and
                                           Decommissioning Costs                                   final rule generally requires only
                                                                                                   certified summaries of the actual                      maintaining leases beyond their primary
                                           AGENCY:  Bureau of Safety and                           expenditures (without other supporting                 terms. Similarly, BSEE will decide at a
                                           Environmental Enforcement, Interior.                    documentation) for those                               later date whether to finalize the
                                           ACTION: Final rule.                                     decommissioning activities and extends                 proposed pipeline report requirement or
                                                                                                   the time period for submission of such                 to address that issue again, potentially
                                           SUMMARY:   This rule amends the                         reports to 120 days after completion of                in a broader rulemaking under 30 CFR
                                           regulations to require lessees and                      each such activity. BSEE may, however,                 part 250, Subpart J—Pipelines and
                                           owners of operating rights to submit                                                                           Pipeline Rights-of-Way. Therefore, these
                                                                                                   require additional supporting
                                           summaries of actual decommissioning                                                                            two issues are not included in this final
                                                                                                   information for specific
                                           expenditures incurred after completion                                                                         rule. In addition, this final rule does not
                                                                                                   decommissioning costs on a case-by-
                                           of certain decommissioning activities                                                                          include sections of the proposed rule
                                                                                                   case basis.
                                           for oil and gas and sulphur operations                                                                         that now fall under BOEM’s authority.
                                           on the Outer Continental Shelf. This                    I. Background
                                                                                                                                                          II. What This Final Rule Covers
                                           information will help BSEE to better                      On May 27, 2009, the former Minerals
                                           estimate future decommissioning costs                                                                             This final rule revises portions of
                                                                                                   Management Service (MMS) published a                   BSEE’s regulations at 30 CFR part 250,
                                           related to OCS leases, rights-of-way, and               Notice of Proposed Rulemaking in the
                                           rights of use and easement.                                                                                    Subpart Q—Decommissioning
                                                                                                   Federal Register (Leasing of Sulphur or                Activities. Specifically, the final rule
                                           DATES: This final rule becomes effective                Oil and Gas and Bonding Requirements                   requires lessees to submit certified
                                           on January 4, 2016.                                     in the Outer Continental Shelf) in order               summaries of actual decommissioning
                                           FOR FURTHER INFORMATION CONTACT:                        to update and streamline the existing                  expenditures incurred for certain
                                           Lakeisha Harrison, Chief, Regulations                   OCS leasing regulations under the Outer                decommissioning activities that are
                                           and Standards Branch,                                   Continental Shelf Lands Act (OCSLA)                    required under Subpart Q (i.e., plugging
                                           Lakeisha.Harrison@bsee.gov, (703) 787–                  and to clarify implementation of the                   and abandonment of wells, removal of
                                           1552.                                                   Federal Oil and Gas Royalty                            platforms and other facilities, and site
                                           SUPPLEMENTARY INFORMATION:                              Simplification and Fairness Act of 1996                clearance) 2 within 120 days of
                                                                                                   (see 74 FR 25177). In 2010 and 2011, the               completion of each such activity. This
                                           Table of Contents                                       Secretary of the Interior (Secretary)                  information will help BSEE better
                                           Executive Summary                                       reorganized MMS into three bureaus:                    estimate future decommissioning costs
                                           I. Background                                           BSEE, BOEM, and the Office of Natural                  related to OCS leases, rights-of-way, and
                                           II. What This Final Rule Covers                         Resources Revenue. The Secretary then
                                           III. Differences Between Proposed Rule and                                                                     rights of use and easement. BSEE’s
                                                                                                   delegated to BSEE certain                              decommissioning cost estimates may
                                                 Final Rule                                        responsibilities under OCSLA that were
                                           IV. Comments and Responses                                                                                     then be used by BOEM to set financial
                                           V. Procedural Matters
                                                                                                   formerly held by MMS, including                        assurance levels necessary to minimize
                                                                                                   responsibilities for overseeing
                                           Executive Summary                                       decommissioning.1 BSEE’s primary                         2 For example, §§ 250.1710 and 250.1711 require

                                              This final rule requires lessees and                 purpose as an agency is to promote                     wells to be plugged within a year after termination
                                           owners of operating rights (collectively,               safety, protect the environment, and                   of a lease or when ordered by BSEE, respectively.
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                                                                                                   ensure responsible development and                     Section 250.1725 requires platforms and other
                                           ‘‘lessees’’) to submit to the Bureau of                                                                        facilities to be removed within a year of termination
                                           Safety and Environmental Enforcement                    conservation of offshore oil and natural               of a lease unless the lessee has received approval
                                           (BSEE) summaries of actual                                                                                     to maintain the facility to conduct other activities.
                                                                                                      1 For convenience, hereafter we use the term        Section 250.1740 requires verification that a site has
                                           expenditures for decommissioning of                     ‘‘BSEE’’ rather than ‘‘MMS’’ in this document,         been cleared of obstructions within 60 days after a
                                           wells, platforms and other facilities on                where appropriate, when referring to past actions of   well has been plugged or a platform or other facility
                                           the Outer Continental Shelf (OCS) that                  MMS.                                                   has been removed.



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                                                             Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations                                                75807

                                           or eliminate the possibility that the                   potential ambiguity, by expressly                     account for such expenses separately
                                           government will incur decommissioning                   requiring that cost summaries include                 would diminish the usefulness of the
                                           liability.                                              such a certification statement.                       information provided to BSEE. The
                                              The proposed rule would have added                      In addition, after consideration of                commenter also stated that lessees are
                                           new reporting provisions to three                       comments received regarding potential                 willing to work with BSEE on a case-by-
                                           separate existing regulatory                            burdens on lessees from the proposed                  case basis to provide specific cost
                                           provisions—§§ 250.1717, 250.1729 and                    requirement for submission of                         information as necessary. Finally, the
                                           250.1743—that require submission of                     supporting documentation for each                     commenter stated that, to the extent any
                                           decommissioning information                             expenditure, the final rule requires that             trade secret, or confidential or
                                           (including supporting documentation)                    lessees submit, to the appropriate BSEE               proprietary information might be
                                           regarding well plugging and                             Regional Supervisor, only a certified                 included in submissions to BSEE, the
                                           abandonment, removal of platforms and                   summary of decommissioning                            proposed rule did not include a
                                           other facilities, and site clearance,                   expenditures.3 The final rule requires                mechanism to protect that information
                                           respectively. BSEE has determined,                      additional supporting information only                from disclosure.
                                           however, that adding the                                if the appropriate Regional Supervisor                   Response: Contrary to the
                                           decommissioning cost reporting                          specifically requires it on a case-by-case            commenter’s assertion, BSEE does not
                                           requirements to three separate sections                 basis.                                                have ready access to other sources of
                                           would be unnecessarily redundant and                       Finally, based on BSEE’s review of the             information for actual expenditures
                                           potentially confusing. Therefore, this                  comments on the proposed rule, the                    incurred for decommissioning activities.
                                           final rule adds two new paragraphs—(h)                  final rule requires that lessees submit               As previously explained, BSEE needs
                                           and (i)—containing the                                  the summary of actual decommissioning                 and will use decommissioning cost data
                                           decommissioning cost reporting                          costs within 120 days of completion of                to estimate future decommissioning
                                           requirements to the existing § 250.1704,                those decommissioning activities,                     costs, which BOEM will use to set the
                                           which already provides other                            instead of the proposed requirement for               amount of required bonds and other
                                           decommissioning applications and                        reporting within 30 days. BSEE has                    forms of financial security. However,
                                           reporting requirements. This approach                   determined that 120 days constitutes a                while the final rule provides that a
                                           is intended to prevent unnecessary                      more appropriate period for lessees to                lessee must report actual
                                           repetition and to provide for consistent                collect, summarize, and submit this                   decommissioning expenditures incurred
                                           cost reporting procedures for all of the                information.                                          for the specified decommissioning
                                           specified decommissioning activities.
                                                                                                   IV. Comments and Responses                            activities, it now requires, in general,
                                           III. Differences Between Proposed Rule                                                                        that the lessee submit only a summary
                                           and Final Rule                                             In response to the proposed rule,                  of such expenditures rather than
                                                                                                   BSEE received three comments, all from                specific supporting documentation for
                                              The following is a discussion of
                                                                                                   representatives of the offshore oil and               each expenditure. The information
                                           differences between the proposed rule
                                                                                                   gas industry, related to the provisions               needed to prepare such a summary is
                                           and the final rule with regard to 30 CFR
                                                                                                   for reporting costs of decommissioning                readily available to industry as a matter
                                           part 250.
                                              Subpart Q—Decommissioning                            activities. The full text of the relevant             of business practice, and supplying this
                                           Activities—The proposed rule would                      comments can be viewed at:                            summary information does not
                                           have amended §§ 250.1717, 250.1729                      www.regulations.gov. To access those                  constitute an unreasonable burden.
                                           and 250.1743 to require submission of                   comments, enter MMS–2007–OMM–                            In addition, the final rule provides
                                           information, including supporting                       0069 in the Search box. A summary of                  examples of activities (including, but
                                           documentation, on expenditures for the                  the comments, with BSEE’s responses,                  not limited to, expenses incurred for the
                                           decommissioning activities previously                   follows.                                              use of rigs, vessels, equipment, supplies
                                           described in parts II and III. Instead of                  Comment: One industry commenter                    and materials, transportation of any
                                           amending those sections, however, the                   stated that the proposed addition of §§               kind, personnel, and services)
                                           final rule adds new paragraphs (h) and                  250.1717(e), 250.1729(d), and                         associated with the specified
                                           (i) to § 250.1704. Those new paragraphs                 250.1743(b)(8) to the regulations,                    decommissioning activities for which
                                           require a lessee to submit to BSEE, after               requiring submittal of actual                         summaries of actual expenditures
                                           completing the specified                                expenditures for every instance of site               incurred must be submitted.
                                           decommissioning activities, a certified                 clearance, platform removal and well
                                                                                                   plugging, would be unduly burdensome                     While the final rule does not include
                                           summary of actual decommissioning                                                                             the proposed requirement to submit
                                           expenditures and, if requested by the                   in light of the potential benefits. The
                                                                                                   commenter stated that, while BSEE may                 supporting documentation for each
                                           Regional Supervisor, additional                                                                               decommissioning expenditure, the final
                                           information to support the summary.                     need some access to accurate
                                                                                                   decommissioning cost data, there are                  rule provides that BSEE may request
                                           The addition of paragraphs (h) and (i) to                                                                     additional information on a case-by-case
                                           § 250.1704 eliminates the need to insert                alternatives available to obtain the same
                                                                                                   information, although the commenter                   basis to support the summary, as
                                           repetitive language in §§ 250.1717,                                                                           suggested by the commenter. However,
                                           250.1729, and 250.1743, and results in                  did not state what those alternatives
                                                                                                   might be. The commenter also asserted                 in such cases, BSEE will minimize the
                                           a more consolidated regulation, with                                                                          burden by working directly with the
                                           consistent reporting procedures                         that the proposed provisions gave no
                                                                                                   guidance as to exactly what                           lessee to determine what specific
                                           applicable to all of the specified                                                                            supporting information is required.4 In
                                           decommissioning activities.                             expenditures should be included from
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                                              Under the proposed rule, BSEE                        an accounting perspective, and that the                 4 Although BSEE does not anticipate that such

                                           would have expected supporting                          proposal to require each lessee to                    supporting information will be needed often, there
                                           documentation to include a statement                                                                          may be situations (e.g., when a lessee’s summary
                                                                                                     3 As a practical matter, BSEE recognizes that a     reflects decommissioning expenditures
                                           certifying the truth and accuracy of the                designated operator may submit the required           substantially higher or lower than other lessees’
                                           reported costs. The final rule addresses                summary of decommissioning costs on behalf of a       summaries for similar activities in the same area)
                                           that expectation, and eliminates any                    lessee.                                                                                         Continued




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                                           75808             Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations

                                           addition, by working together on a case-                interest summary form billing standards               approaches that reduce burdens and
                                           by-case basis whenever supporting                       and practices.                                        maintain flexibility and freedom of
                                           information is requested, BSEE and the                    Comment: A third commenter stated                   choice for the public where these
                                           lessee can help reduce the need to                      that BSEE did not need cost data with                 approaches are relevant, feasible, and
                                           submit any confidential information.                    supporting documentation to help                      consistent with regulatory objectives. It
                                           Any confidential information that is                    assess bonding requirements. Rather,                  also emphasizes that regulations must
                                           provided will be handled in accordance                  the commenter suggested that BSEE                     be based on the best available science
                                           with the Freedom of Information Act                     could request operators to certify the                and that the rulemaking process must
                                           (FOIA) (5 U.S.C. 552), the Department of                cost information instead of requiring                 allow for public participation and an
                                           the Interior’s (DOI’s) FOIA regulations                 supporting documentation.                             open exchange of ideas. BSEE
                                           (43 CFR part 2), and section 26 of                        Response: As suggested by the
                                                                                                                                                         developed this rule in a manner
                                           OCSLA, 43 U.S.C. 1352.                                  commenter, instead of requiring
                                                                                                   supporting information in every case,                 consistent with these requirements.
                                              Comment: Another commenter also
                                           stated that the proposed requirement to                 the final rule requires that a lessee                 Regulatory Flexibility Act (RFA)
                                           submit all ‘‘expenses’’ with ‘‘supporting               submit only a summary of its
                                           documentation’’ would impose a                          decommissioning costs, with a                           BSEE certifies that this final rule will
                                           significant burden. Further, the                        certification statement by an authorized              not have a significant economic effect
                                           commenter observed that since the                       company representative. Additional                    on a substantial number of small entities
                                           proposed rule provided no guidelines                    supporting information is required only               under the RFA (5 U.S.C. 601 et seq.).
                                           on what constitutes an ‘‘expense,’’ BSEE                when the Regional Supervisor requests                 This rule potentially affects offshore
                                           likely would receive inconsistent                       such information on a case-by-case                    lessees who perform decommissioning
                                           reporting from lessees. The commenter’s                 basis.                                                activities under 30 CFR part 250. This
                                           preference is for BSEE to work directly                 V. Procedural Matters                                 could include about 130 active
                                           with lessees to develop specific                                                                              companies. Offshore lessees fall under
                                           information requirements and to allow                   Regulatory Planning and Review                        the Small Business Administration’s
                                           the lessees to exclude confidential or                  (Executive Orders 12866 and 13563)                    North American Industry Classification
                                           proprietary information.                                   Executive Order 12866 (E.O. 12866)                 System (NAICS) codes 211111 (Crude
                                              Response: As previously explained,                   provides that the Office of Management                Petroleum and Natural Gas Extraction)
                                           BSEE needs information regarding                        and Budget (OMB), Office of                           and 213111 (Drilling Oil and Gas Wells).
                                           actual decommissioning expenditures                     Information and Regulatory Affairs                    For these NAICS code classifications, a
                                           incurred by lessees in order to                         (OIRA), will review all significant rules.            small company is one with fewer than
                                           appropriately estimate future costs and                 BSEE has determined that this final rule              500 employees. Based on these criteria,
                                           minimize the government’s risk of                       is not a significant regulatory action as             an estimated 90 (or 69 percent) of the
                                           potential decommissioning liability.                    defined by section 3(f) of E.O. 12866                 active companies are considered small.
                                           However, since the final rule typically                 because:                                              Thus, this final rule would affect a
                                           will require only a summary of actual                   —It is not expected to have an annual                 substantial number of small entities.
                                           decommissioning expenditures, the                          effect on the economy of $100 million
                                           overall potential burden on lessees will                                                                        However, because the final rule
                                                                                                      or more;
                                           likely be less than under the proposed                  —It will not adversely affect in a                    requires only summary reports of actual
                                           rule, and the summary will be less                         material way the economy,                          expenditures related to performance of
                                           likely to reflect confidential or                          productivity, competition, jobs, the               decommissioning activities, it will not
                                           proprietary information. In addition, as                   environment, public health or safety,              impose significant new costs or burdens
                                           suggested by two commenters, BSEE                          or State, local, or tribal governments             on offshore oil and gas companies.
                                           will work directly with lessees on a                       or communities;                                    Accordingly, this rule will not have a
                                           case-by-case basis, as necessary,                       —It will not create a serious                         significant economic effect on a
                                           whenever additional supporting                             inconsistency or otherwise interfere               substantial number of small entities,
                                           information may be required in order to                    with an action taken or planned by                 and BSEE is not required by the RFA to
                                           avoid or minimize the potential need for                   another agency;                                    prepare a regulatory flexibility analysis
                                           submission of any confidential                          —It will not alter the budgetary impact               for this rule.
                                           information.                                               of entitlements, grants, user fees, or
                                                                                                                                                           Your comments are important. The
                                              Finally, since the final rule now lists                 loan programs, or the rights or
                                                                                                                                                         Small Business and Agriculture
                                           several examples of the types of                           obligations of their recipients; and
                                                                                                   —It does not raise novel legal or policy              Regulatory Enforcement Ombudsman
                                           expenditures that must be included in
                                                                                                      issues arising out of legal mandates,              and 10 Regional Fairness Boards were
                                           the summaries, and since BSEE will
                                                                                                      the President’s priorities, or the                 established to receive comments from
                                           work with individual lessees to
                                                                                                      principles set forth in E.O. 12866.                small businesses about Federal agency
                                           determine what additional supporting
                                           information, if any, is needed in specific                 Accordingly, BSEE has not prepared                 enforcement actions. The Ombudsman
                                           cases, the possibility of inconsistent                  an economic analysis, and OIRA has not                will annually evaluate the enforcement
                                           reporting suggested by the commenter                    reviewed this rule.                                   activities and rate each agency’s
                                           will be minimized. In addition, BSEE                       Executive Order 13563 (E.O. 13563)                 responsiveness to small business. If you
                                           expects to issue further guidance to                    reaffirms the principles of E.O. 12866                wish to comment on the actions of
                                           assist lessees in preparing expenditure                 while calling for improvements in the                 BSEE, call 1–888–734–3247. You may
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                                           summaries, such as using cost                           Nation’s regulatory system to promote                 comment to the Small Business
                                           classifications and accounting methods                  predictability, to reduce uncertainty,                Administration (SBA) without fear of
                                           consistent with current OCS joint                       and to use the best, most innovative,                 retaliation. Allegations of
                                                                                                   and least burdensome tools for                        discrimination/retaliation filed with the
                                           where additional supporting information would be        achieving regulatory ends. E.O. 13563                 SBA will be investigated for appropriate
                                           appropriate.                                            directs agencies to consider regulatory               action.


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                                                              Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations                                            75809

                                           Small Business Regulatory Enforcement                   affect that role. Accordingly, a                        on occasion. The IC does not include
                                           Fairness Act (SBREFA)                                   Federalism Assessment is not required.                  questions of a sensitive nature. BSEE
                                                                                                                                                           will protect confidential commercial
                                             This rule is not a major rule under the               Civil Justice Reform (Executive Order
                                                                                                                                                           and proprietary information according
                                           SBREFA (5 U.S.C. 801 et seq.). This rule                12988)
                                                                                                                                                           to section 26 of OCSLA (43 U.S.C.
                                           will not:                                                 This rule complies with the                           1352), FOIA (5 U.S.C. 552) and DOI’s
                                           —Have an annual effect on the economy                   requirements of Executive Order 12988                   implementing regulations (43 CFR part
                                             of $100 million or more;                              (E.O. 12988), Civil Justice Reform                      2), and according to 30 CFR 250.197
                                           —Cause a major increase in costs or                     (February 7, 1996). Specifically, this                  (Data and information to be made
                                             prices for consumers, individual                      rule:                                                   available to the public or for limited
                                             industries, Federal, State, or local                  —Meets the criteria of section 3(a) of                  inspection). Once the requirements of
                                             government agencies, or geographic                      E.O. 12988 requiring that all                         this rulemaking have been codified,
                                             regions; or                                             regulations be reviewed to eliminate                  BSEE will consolidate these additional
                                           —Have significant adverse effects on                      drafting errors and ambiguity and be                  burden hours into the primary
                                             competition, employment,                                written to minimize litigation; and                   collection for 30 CFR part 250, Subpart
                                             investment, productivity, innovation,                 —Meets the criteria of section 3(b)(2) of               Q, under OMB Control Number 1014–
                                             or the ability of U.S.-based enterprises                E.O. 12988 requiring that all                         0010 (expiration 10/31/16; 29,437
                                             to compete with foreign-based                           regulations be written in clear                       burden hours and $2,152,644 non-hour
                                             enterprises.                                            language and contain clear legal                      cost burdens).
                                                                                                     standards.                                              We received three comments stating
                                           Unfunded Mandates Reform Act of 1995
                                                                                                   Consultation With Indian Tribal                         that the proposed requirements would
                                              This rule does not impose an                         Governments (Executive Order 13175)                     impose a significant burden. Although
                                           unfunded mandate on State, local, or                                                                            we reduced the regulatory requirements
                                                                                                      We have evaluated this rule under the
                                           tribal governments or the private sector                                                                        for this final rule, as previously
                                                                                                   Department’s tribal consultation policy
                                           of more than $100 million per year. The                                                                         described, we felt it was prudent to use
                                                                                                   and under the criteria in Executive
                                           rule also will not have a significant or                                                                        the same number of burden hours as in
                                                                                                   Order 13175 and have determined that
                                           unique effect on state, local, or tribal                                                                        the proposed rule. We will adjust the
                                                                                                   it has no substantial direct effects on
                                           governments or the private sector. Thus,                                                                        burden hours accordingly in the IC
                                                                                                   federally recognized Indian tribes, or on
                                           a statement containing the information                  the relationship or distribution of power               renewal when industry has had enough
                                           required by the Unfunded Mandates                       and responsibilities between the Federal                experience with the final rule to
                                           Reform Act (2 U.S.C. 1531 et seq.) is not               Government and Indian tribes, and that                  determine the actual burden associated
                                           required.                                               consultation under the Department’s                     with these requirements. Also, based on
                                           Takings Implication Assessment                          tribal consultation policy is not                       comments received, there are some
                                           (Executive Order 12630)                                 required.                                               regulatory text revisions, which consist
                                                                                                                                                           of the following. The final rule:
                                             Under the criteria in Executive Order                 Paperwork Reduction Act (PRA)
                                                                                                                                                           —Requires lessees to submit to BSEE
                                           12630, this rule will not have significant                This rule contains new information                      only a summary of actual
                                           takings implications. The rule is not a                 collection (IC) requirements and                          decommissioning expenditures
                                           governmental action capable of                          submission to the OMB under the PRA                       incurred for each decommissioning
                                           interference with constitutionally                      of 1995 (44 U.S.C. 3501 et seq.) is                       activity (unless additional
                                           protected property rights. Therefore, a                 required. The OMB has approved the IC                     information is specifically required by
                                           Takings Implication Assessment is not                   in this rule under OMB Control Number                     the BSEE Regional Supervisor on a
                                           required.                                               1014–0029, expiration November 30,                        case-by-case basis); and
                                           Federalism (Executive Order 13132)                      2018. We estimate the annual burden
                                                                                                                                                           —Changes the summary submission
                                                                                                   associated with this IC to be 820 hours
                                             Under the criteria in Executive Order                                                                           period from 30 days to 120 days after
                                                                                                   per year.
                                           13132, this rule does not have                            The title of the collection of                          completion of each decommissioning
                                           federalism implications. This rule does                 information for this rule is 30 CFR part                  activity, giving industry more time to
                                           not substantially and directly affect the               250, subpart Q, Decommissioning Costs.                    comply.
                                           relationship between the Federal and                    Potential respondents include                             There are no non-hour cost burdens
                                           State governments. To the extent that                   approximately 130 OCS lessees.                          associated with this rulemaking. The
                                           State and local governments have a role                 Responses to this collection are                        following table is a breakdown of the
                                           in OCS activities, this rule does not                   mandatory. The frequency of response is                 burden estimate:

                                                                                                                     BURDEN TABLE
                                                                                                                                                                  Average number of        Annual burden
                                               Citation 30 CFR 250                Reporting and recordkeeping requirements                   Hour burden          annual responses            hours

                                           Proposed 250.1717(e);              Submit to the Regional Supervisor, within 120 days                           1   820 summaries/ additional            820
                                             1729(d); 1743(b)(8).               after completion of each identified decommis-                                    info.
                                           Final 250.1704(h), (i).              sioning activity, a summary of expenditures in-
                                                                                curred and subsequently, if requested, any addi-
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                                                                                tional information that will support and/or verify
                                                                                the summary.

                                           Final 250.1704(h) ..............   Submit certified statement attesting to accuracy of              Exempt from the PRA under 5 CFR                         0
                                                                                expenditures incurred data.                                              1320.3(h)(1).




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                                           75810                 Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations

                                                                                                                             BURDEN TABLE—Continued
                                                                                                                                                                                                           Average number of                    Annual burden
                                               Citation 30 CFR 250                         Reporting and recordkeeping requirements                                         Hour burden                    annual responses                        hours

                                                Total ...........................   ....................................................................................   ........................   820 ...................................            820



                                             An agency may not conduct or                                         Data Quality Act                                                                 Dated: August 28, 2015.
                                           sponsor, and you are not required to                                                                                                                  Janice M. Schneider,
                                           respond to, a collection of information                                  In developing this rule, we did not                                          Assistant Secretary, Land and Minerals
                                           unless it displays a currently valid OMB                               conduct or use a study, experiment, or                                         Management.
                                           control number. The public may                                         survey requiring peer review under the
                                                                                                                  Data Quality Act (44 U.S.C. 3516 et seq.,                                        Editorial note: This document was
                                           comment at any time on the accuracy of                                                                                                                received for publication by the Office of
                                           the IC burden in this rule and may                                     Public Law 106–554, app. C § 515, 114                                          Federal Register on November 30, 2015.
                                           submit any comments to the Department                                  Stat. 2763, 2763A–153–154).
                                           of the Interior, Bureau of Safety and                                                                                                                   For the reasons stated in the
                                                                                                                  Effects on the Nation’s Energy Supply                                          preamble, BSEE amends 30 CFR part
                                           Environmental Enforcement, Attention:
                                                                                                                  (Executive Order 13211)                                                        250 as follows:
                                           Regulations and Standards Branch, VA–
                                           ORP, 45600 Woodland Road, Sterling,                                      This rule is not a significant energy                                        PART 250—OIL AND GAS AND
                                           VA 20166.                                                              action under Executive Order 13211                                             SULPHUR OPERATIONS IN THE
                                           National Environmental Policy Act of                                   (E.O. 13211) because:                                                          OUTER CONTINENTAL SHELF
                                           1969 (NEPA)                                                            —It is not a significant regulatory action                                     ■ 1. The authority citation for part 250
                                                                                                                   under E.O. 12866;                                                             continues to read as follows:
                                             This rule meets the criteria set forth
                                           in 43 CFR 46.210(i) and 516                                            —It is not likely to have a significant                                          Authority: 30 U.S.C. 1751, 31 U.S.C. 9701,
                                           Departmental Manual (DM) 15.4C(1) for                                   adverse effect on the supply,                                                 43 U.S.C. 1334.
                                           a categorical exclusion, because it                                     distribution or use of energy; and
                                                                                                                                                                                                 ■ 2. Amend § 250.1704 by revising the
                                           involves modification of existing                                      —It has not been designated as a                                               section heading and the introductory
                                           regulations, the impacts of which would                                 significant energy action by the                                              text, and by adding new paragraphs (h)
                                           be limited to administrative or                                         Administrator of OIRA.                                                        and (i) to the Decommissioning
                                           economic effects with minimal
                                                                                                                  List of Subjects in 30 CFR Part 250                                            Applications and Reports Table, to read
                                           environmental impacts.
                                                                                                                                                                                                 as follows:
                                             We also analyzed this rule to                                          Administrative practice and
                                           determine if it involves any of the                                                                                                                   § 250.1704 What decommissioning
                                                                                                                  procedure, Continental shelf,                                                  applications and reports must I submit and
                                           extraordinary circumstances set forth in                               Environmental impact statements,
                                           43 CFR 46.215 that would require an                                                                                                                   when must I submit them?
                                                                                                                  Environmental protection,                                                        You must submit decommissioning
                                           environmental assessment or an
                                                                                                                  Investigations, Oil and gas exploration,                                       applications, receive approval of those
                                           environmental impact statement for
                                                                                                                  Penalties, Reporting and recordkeeping                                         applications, and submit subsequent
                                           actions otherwise eligible for a
                                                                                                                  requirements, Sulphur.                                                         reports according to the requirements
                                           categorical exclusion. We concluded
                                           that this rule does not meet any of the                                                                                                               and deadlines in the following table.
                                           criteria for extraordinary circumstances.                                                                                                             *    *     *     *     *

                                                                                                   DECOMMISSIONING APPLICATIONS AND REPORTS TABLE
                                            Decommissioning applications and                                   When to submit                                                                             Instructions
                                                       reports


                                                       *                  *                                  *                   *                     *                    *                    *
                                           (h) A certified summary of expendi-                  Within 120 days after completion Submit to the Regional Supervisor a complete summary of expendi-
                                             tures for permanently plugging                      of each decommissioning activity    tures actually incurred for each decommissioning activity (including,
                                             any well, removal of any plat-                      specified in this paragraph.        but not limited to, the use of rigs, vessels, equipment, supplies and
                                             form or other facility, and clear-                                                      materials; transportation of any kind; personnel; and services). In-
                                             ance of any site after wells have                                                       clude in, or attach to, the summary a certified statement by an au-
                                             been plugged or platforms or fa-                                                        thorized representative of your company attesting to the truth, accu-
                                             cilities removed.                                                                       racy and completeness of the summary. The Regional Supervisor
                                                                                                                                     may provide specific instructions or guidance regarding how to sub-
                                                                                                                                     mit the certified summary.
                                           (i) If requested by the Regional Su-                 Within a reasonable time as deter- The Regional Supervisor will review the summary and may provide
                                              pervisor, additional information in                mined by the Regional Super-        specific instructions or guidance regarding the submission of addi-
                                              support of any decommissioning                     visor.                              tional information (including, but not limited to, copies of contracts
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                                              activity expenditures included in                                                      and invoices), if requested, to complete or otherwise support the
                                              a summary submitted under                                                              summary.
                                              paragraph (h) of this section.




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                                                             Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations                                        75811

                                           [FR Doc. 2015–30585 Filed 12–3–15; 8:45 am]             maintenance on the bridge. The                        DEPARTMENT OF HOMELAND
                                           BILLING CODE 4310–VH–P                                  deviation further allows the bridge to                SECURITY
                                                                                                   remain closed for up to 120 hours in
                                                                                                   duration occasionally to replace larger               Coast Guard
                                           DEPARTMENT OF HOMELAND                                  components as long as 72-hours notice
                                           SECURITY                                                is given to the USCG District Eight                   33 CFR Part 117
                                                                                                   Western Rivers Bridge Branch.                         [Docket No. USCG–2015–0975]
                                           Coast Guard
                                                                                                      The Illinois Central Railroad
                                                                                                                                                         Drawbridge Operation Regulation;
                                           33 CFR Part 117                                         Drawbridge currently operates in
                                                                                                                                                         Upper Mississippi River, Clinton, IA
                                                                                                   accordance with 33 CFR 117.5, which
                                           [Docket No. USCG–2015–0999]                             states the general requirement that the               AGENCY: Coast Guard, DHS.
                                                                                                   drawbridge shall open on signal.                      ACTION:Notice of deviation from
                                           Drawbridge Operation Regulation;
                                           Upper Mississippi River, Dubuque, IA                       There are no alternate routes for                  drawbridge regulation.
                                                                                                   vessels transiting this section of the                SUMMARY:   The Coast Guard has issued a
                                           AGENCY: Coast Guard, DHS.                               Upper Mississippi River. The bridge
                                           ACTION: Notice of deviation from
                                                                                                                                                         temporary deviation from the operating
                                                                                                   cannot open in case of emergency.                     schedule that governs the Clinton
                                           drawbridge regulation.
                                                                                                      Winter conditions on the Upper                     Railroad Drawbridge across the
                                           SUMMARY:    The Coast Guard has issued a                Mississippi River coupled with the                    Mississippi River, mile 518.0, at
                                           temporary deviation from the operating                  closure of Army Corps of Engineer’s                   Clinton, Iowa. The deviation is
                                           schedule that governs the Illinois                      Lock No. 13 (Mile 522.5 UMR) and Lock                 necessary to allow the bridge owner
                                           Central Railroad Drawbridge across the                  No. 21 (Mile 324.9 UMR) from 7 a.m.                   time to perform preventative
                                           Mississippi River, mile 579.9, at                       January 4, 2016 until 12 p.m., March 4,               maintenance that is essential to the
                                           Dubuque, Iowa. The deviation is                         2016 will preclude any significant                    continued safe operation of the
                                           necessary to allow the bridge owner                     navigation demands for the drawspan                   drawbridge. Maintenance is scheduled
                                           time to perform preventive maintenance                  opening. In addition, Army Corps Lock                 in the winter when there is less impact
                                           that is essential to the safe operation of              No. 14 (Mile 493.3 UMR) and Lock No.                  on navigation; instead of scheduling
                                           the drawbridge. Maintenance is                          17 (Mile 437.1 UMR) will be closed                    work in the summer, when river traffic
                                           scheduled in the winter when there is                                                                         increases. This deviation allows the
                                                                                                   from 7 a.m. December 14, 2015 until 12
                                           less impact on navigation, instead of                                                                         bridge to open on signal if at least 24-
                                                                                                   p.m. March 2, 2016.
                                           scheduling work in the summer when                                                                            hours advance notice is given. It further
                                           river traffic increases. This deviation                    The Illinois Central Railroad                      allows the bridge to remain closed for
                                           allows the bridge to open on signal if at               Drawbridge provides a vertical                        up to 120 hours in duration occasionally
                                           least 24-hours advance notice is given.                 clearance of 19.9 feet above normal pool              between January 4, 2016 and February
                                           It further allows the bridge to remain                  in the closed-to-navigation position.                 19, 2016 to replace larger bridge
                                           closed for up to 120 hours in duration                  Navigation on the waterway consists                   components as long as 72-hours notice
                                           occasionally to replace larger                          primarily of commercial tows and                      is given to the USCG District Eight
                                           components as long as 72-hours notice                   recreational watercraft and will not be               Western Rivers Bridge Branch.
                                           is given to the USCG District Eight                     significantly impacted. The drawbridge                DATES: This deviation is effective from
                                           Western Rivers Bridge Branch.                           will open if at least 24-hours advance                5 p.m., December 15, 2015 until 9 a.m.,
                                           DATES: This deviation is effective from                 notice is given and will close for up to              on March 1, 2016.
                                           5 p.m., December 14, 2015 until 9 a.m.,                 120 hours provided 72-hours advance                   ADDRESSES: The docket for this
                                           February 29, 2016.                                      notice is given to the USCG District                  deviation, (USCG–2015–0975) is
                                           ADDRESSES: The docket for this                          Eight Western Rivers Bridge Branch.                   available at http://www.regulations.gov.
                                           deviation, (USCG–2015–0999) is                          This temporary deviation has been                     Type the docket number in the
                                           available at http://www.regulations.gov.                coordinated with waterway users. No                   ‘‘SEARCH’’ box and click ‘‘SEARCH.’’
                                           Type the docket number in the                           objections were received.                             Click on Open Docket Folder on the line
                                           ‘‘SEARCH’’ box and click ‘‘SEARCH’’.                                                                          associated with this deviation.
                                                                                                      In accordance with 33 CFR 117.35(e),
                                           Click on Open Docket Folder on the line                                                                       FOR FURTHER INFORMATION CONTACT: If
                                                                                                   the drawbridge must return to its regular
                                           associated with this deviation.                                                                               you have questions on this temporary
                                                                                                   operating schedule immediately at the
                                           FOR FURTHER INFORMATION CONTACT: If                                                                           deviation, call or email Eric A.
                                                                                                   end of the effective period of this
                                           you have questions on this temporary                                                                          Washburn, Bridge Administrator,
                                                                                                   temporary deviation. This deviation
                                           deviation, call or email Eric A.                                                                              Western Rivers, Coast Guard; telephone
                                                                                                   from the operating regulations is                     314–269–2378, email Eric.Washburn@
                                           Washburn, Bridge Administrator,
                                           Western Rivers, Coast Guard; telephone                  authorized under 33 CFR 117.35.                       uscg.mil.
                                           314–269–2378, email Eric.Washburn@                        Dated: November 27, 2015.                           SUPPLEMENTARY INFORMATION: The Union
                                           uscg.mil.                                               Eric A. Washburn,                                     Pacific Railroad requested a temporary
                                           SUPPLEMENTARY INFORMATION: The                          Bridge Administrator, Western Rivers.                 deviation for the Clinton Railroad
                                           Chicago, Central & Pacific Railroad                     [FR Doc. 2015–30637 Filed 12–3–15; 8:45 am]           Drawbridge, across the Upper
                                           requested a temporary deviation for the                 BILLING CODE 9110–04–P                                Mississippi River, mile 518.0, at
                                           Illinois Central Railroad Drawbridge,                                                                         Clinton, Iowa to open on signal if at
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                                           across the Upper Mississippi River, mile                                                                      least 24-hours advance notice is given
                                           579.9, at Dubuque, Iowa to open on                                                                            for 76 days from 5 p.m., December 15,
                                           signal if at least 24-hours advance notice                                                                    2015 to 9 a.m., March 1, 2016 for
                                           is given for 77 days from 5 p.m.,                                                                             scheduled maintenance on the bridge.
                                           December 14, 2015 until 9 a.m.,                                                                               This deviation further allows the bridge
                                           February 29, 2016 for scheduled                                                                               to remain closed for up to 120 hours in


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Document Created: 2015-12-14 13:53:03
Document Modified: 2015-12-14 13:53:03
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule becomes effective on January 4, 2016.
ContactLakeisha Harrison, Chief, Regulations and Standards Branch, [email protected], (703) 787-1552.
FR Citation80 FR 75806 
RIN Number1014-AA24
CFR AssociatedAdministrative Practice and Procedure; Continental Shelf; Environmental Impact Statements; Environmental Protection; Investigations; Oil and Gas Exploration; Penalties; Reporting and Recordkeeping Requirements and Sulphur

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