81_FR_53504 81 FR 53348 - Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Decommissioning Costs for Pipelines

81 FR 53348 - Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Decommissioning Costs for Pipelines

DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement

Federal Register Volume 81, Issue 156 (August 12, 2016)

Page Range53348-53353
FR Document2016-19057

The Bureau of Safety and Environmental Enforcement (BSEE) proposes to amend the regulations requiring lessees and owners of operating rights to submit summaries of actual decommissioning expenditures incurred for certain decommissioning activities related to oil and gas and sulfur operations on the Outer Continental Shelf (OCS). The proposed rule would expand the scope of the current regulations to require lessees, owners of operating rights, and right-of-way (ROW) holders to submit summaries of actual expenditures incurred for pipeline decommissioning activities.

Federal Register, Volume 81 Issue 156 (Friday, August 12, 2016)
[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Proposed Rules]
[Pages 53348-53353]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19057]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2016-0004; 16XE1700DX EEEE500000 EX1SF0000.DAQ000]
RIN 1014-AA32


Oil and Gas and Sulfur Operations in the Outer Continental 
Shelf--Decommissioning Costs for Pipelines

AGENCY: Bureau of Safety and Environmental Enforcement, Department of 
the Interior.

ACTION: Proposed rule.

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

SUMMARY: The Bureau of Safety and Environmental Enforcement (BSEE) 
proposes to amend the regulations requiring lessees and owners of 
operating rights to submit summaries of actual decommissioning 
expenditures incurred for certain decommissioning activities related to 
oil and gas and sulfur operations on the Outer Continental Shelf (OCS). 
The proposed rule would expand the scope of the current regulations to 
require lessees, owners of operating rights, and right-of-way (ROW) 
holders to submit summaries of actual expenditures incurred for 
pipeline decommissioning activities.

DATES: Submit comments by September 12, 2016. BSEE may not fully 
consider comments received after this date. You may submit comments to 
the Office of Management and Budget (OMB) on the information collection 
burden in this proposed rule by September 12, 2016.

ADDRESSES: You may submit comments on this proposed rulemaking by any 
of the following methods. Please use the Regulation Identifier Number 
(RIN) 1014-AA32 as an identifier in your message. BSEE may post all 
submitted comments on a public Web site.
    1. Submit comments electronically via the Federal eRulemaking 
Portal: http://www.regulations.gov. In the entry titled ``Enter Keyword 
or ID,'' enter BSEE-2016-0004, then click ``Search.'' Follow the 
instructions to submit public comments and view supporting and related 
materials available for this proposed rulemaking.
    2. Mail or hand-carry comments to the Department of the Interior 
(DOI); Bureau of Safety and Environmental Enforcement; Attention: 
Regulations and Standards Branch; 45600 Woodland Road, Sterling, VA 
20166, VAE-ORP. Please reference ``Decommissioning Costs for Pipelines, 
1014-AA32'' in your comments and include your name and return address.
    3. Comments on the information collection contained in this 
proposed rule should be submitted separately from those on the 
substance of the proposed rule. Send comments on the information 
collection burden in this proposed rule to: OMB, Interior Desk Officer 
1014-AA32, 202-395-5806 (fax); or email: OIRA_submission@omb.eop.gov. 
Please send a copy of your comments to BSEE using one of the methods 
previously described.

FOR FURTHER INFORMATION CONTACT: Betty Cox, Regulatory Analyst, 
Regulations and Standards Branch, Betty.Cox@bsee.gov, (703) 787-1616.

SUPPLEMENTARY INFORMATION: 

BSEE's Functions and Authority

    BSEE promotes safety, protects the environment, and conserves 
natural resources through vigorous regulatory oversight and enforcement 
of certain activities on the OCS. BSEE derives its authority primarily 
from the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1331-
1356a. Congress enacted OCSLA in 1953, codifying Federal control over 
the OCS and authorizing the Secretary of the Interior (Secretary) to 
regulate oil and natural gas exploration, development, and production 
operations on the OCS. The Secretary has authorized BSEE to perform 
certain of these functions, including overseeing decommissioning. (See 
30 CFR 250.101; 30 CFR part 250, subpart Q.) To carry out its 
responsibilities, BSEE regulates exploration, development, and 
production of oil and natural gas to enhance safety and environmental 
protection in a way that reflects advancements in technology and new 
information. BSEE also conducts onsite inspections to ensure compliance 
with regulations, lease terms, and approved plans or permits. Detailed 
information concerning BSEE's regulations and guidance for the offshore 
industry may be found on BSEE's Web site at: www.bsee.gov/Regulations-and-Guidance/index.

Public Participation and Availability of Comments

    BSEE encourages you to participate in this proposed rulemaking by 
submitting written comments, as discussed in the ADDRESSES and DATES 
sections of this proposed rule. This proposed rule provides 30 days for 
public comment for the following reasons. The need for submission of 
actual decommissioning cost information for plugging wells, removing 
platforms, and clearing of sites was explained in a proposed rule 
published on May 27, 2009 (74 FR 25177) and a final rule published on 
December 4, 2015 (80 FR75806). That final rule addressed and responded 
to all of the relevant comments submitted on the proposed rule. This 
proposed rule would extend the existing requirements for submitting 
summaries of actual decommissioning costs (30 CFR 250.1704(i) and (j)) 
to pipelines. The reasons for this proposed rule, as discussed in the 
Background and Purpose of Proposed Amendment sections of this notice 
are effectively the same for pipelines as the reasons discussed in the 
December 4, 2016 rule for the reporting of decommissioning costs for 
other facilities. BSEE does not expect that public comments on this 
proposed rule are likely to raise any significant issues that were not 
raised in the earlier decommissioning cost reporting rulemaking. 
Moreover, the affected stakeholders in the oil and gas industry are 
already familiar with the terms and requirements of the existing 
decommissioning cost reporting rule, which would apply without change 
to pipelines under this proposed rule. Accordingly, BSEE has determined 
that 30 days provides a reasonable and adequate opportunity for the 
public to comment on this proposed rule.
    Before including your address, phone number, email address, or 
other personal identifying information in your comment on this proposed 
rule,

[[Page 53349]]

however, you should be aware that your entire comment--including your 
personal identifying information--may be made publicly available at any 
time. While you can ask us in your comment to withhold your personal 
identifying information from public review, we cannot guarantee that we 
will be able to do so.

Background

    Among its responsibilities, BSEE regulates certain types of oil and 
gas pipelines used on the OCS. (See 30 CFR 250.1000-250.1019). In 
general, BSEE regulates pipelines or pipeline segments on the OCS that 
are operated by oil and gas producers, as opposed to pipelines operated 
by transporters. Specifically, BSEE regulates producer-operated 
pipelines that: (1) Extend upstream (generally seaward) from each point 
on the OCS at which operating responsibility transfers from a producing 
operator to a transporting operator; (2) extend upstream (generally 
seaward) from the last valve (including associated safety equipment) on 
the last OCS production facility and that do not connect to a 
transporter-operated pipeline on the OCS before crossing into State 
waters; or (3) connect production facilities on the OCS. (See Sec.  
250.1001.) BSEE also regulates transporter-operated pipelines that DOI 
and the U.S. Department of Transportation (DOT) have agreed are to be 
regulated as DOI pipelines as well as all other OCS pipelines not 
subject to DOT regulation.\1\ (See id.)
---------------------------------------------------------------------------

    \1\ BSEE-regulated pipelines are also referred to as ``DOI 
pipelines.'' See 30 CFR 250.1001. Pipelines subject to DOT 
regulations are commonly referred to as ``DOT pipelines,'' see id., 
and are regulated by the DOT Pipeline and Hazardous Materials Safety 
Administration (PHMSA).
---------------------------------------------------------------------------

    Pipelines regulated by BSEE generally fall within two categories: 
(1) ``lease term'' pipelines (i.e., pipelines owned and operated by a 
lessee or operator and located entirely within the boundaries of a 
single lease, unitized leases, or the contiguous leases of that lessee 
or operator); or (2) ROW pipelines (i.e., OCS pipelines owned and 
operated by an entity other than the lessee or operator of the 
lease(s), unit, or contiguous leases in which the pipeline is 
contained, as well as pipelines that cross unleased areas).\2\ Among 
other things, BSEE approves the installation, modification, and 
decommissioning of all lease term and ROW pipelines, and the 
modification or relinquishment of all pipeline ROW grants on the OCS. 
BSEE's regulations for decommissioning pipelines are found at 30 CFR 
250.1700 through 250.1704 and 250.1750 through 250.1754.
---------------------------------------------------------------------------

    \2\ ROW pipelines also include all DOI pipelines not defined as 
lease term pipelines. See 30 CFR 250.1001 for definitions of lease 
term pipelines and ROW pipelines.
---------------------------------------------------------------------------

    As of August 1, 2016, BSEE regulates 4,842 active pipeline segments 
\3\ (totaling approximately 20,837 miles) and 1,553 out-of-service 
pipeline segments (totaling approximately 2,249 miles). In addition, 
BSEE has regulatory authority over 8,832 decommissioned pipeline 
segments, as well as 825 pipeline segments that have been approved for 
decommissioning.
---------------------------------------------------------------------------

    \3\ BSEE assigns pipeline segment numbers as specific pipeline 
identifiers.
---------------------------------------------------------------------------

    BSEE's requirements for decommissioning a pipeline are found at 
Sec. Sec.  250.1750-250.1754. Pursuant to Sec.  250.1751, requirements 
for decommissioning a pipeline in place include: pigging (to remove any 
residual hydrocarbons from the pipeline), unless the Regional 
Supervisor determines that pigging is not practical; flushing and 
filling the pipeline with seawater; cutting and plugging the ends of 
the pipeline; and burying the ends at least 3 feet below the seafloor 
or covering the ends with protective concrete mats, if required by the 
Regional Supervisor. Section 250.1751(g) also requires removal of all 
valves and other fittings that could unduly interfere with other uses 
of the OCS.
    In addition, under Sec.  250.1754, BSEE has the authority to 
require that lessees, owners of operating rights, and ROW holders 
remove pipelines previously decommissioned in place if and when the 
Regional Supervisor determines that the pipeline is an obstruction.
    BSEE's requirements for decommissioning by removing all or part of 
a pipeline are found at Sec.  250.1752 and include, in part, pigging 
and flushing the pipeline (unless the Regional Supervisor determines 
that pigging is not practical) before removal.

Purpose of Proposed Amendment

    In 2009, BSEE's predecessor agency, the Minerals Management Service 
(MMS), proposed new reporting requirements related to lease term 
pipelines when MMS approves a lease assignment. (See 74 FR 25177 (May 
27, 2009).) MMS also proposed to require the submission of information 
on expenditures for decommissioning of wells, platforms and other 
facilities and for site clearance. (See id.)
    In a final rule published on December 4, 2015, BSEE amended its 
regulations to require lessees and owners of operating rights to submit 
summaries of actual decommissioning expenditures for certain required 
decommissioning activities within 120 days after completion of each 
such activity. (See 80 FR 75806.) Specifically, the final rule required 
reporting of summaries of expenditures for plugging wells, removing 
platforms and other facilities, and clearing obstructions from sites. 
In addition, the final rule authorized BSEE to require additional 
supporting information regarding specific decommissioning costs on a 
case-by-case basis. The final rule was codified at 30 CFR 250.1704(h) 
and (i).
    Effective July 28, 2016, BSEE's Well Control final rule revised 
paragraph (g) in Sec.  250.1704, added a new paragraph (h), and 
redesignated existing paragraphs (h) and (i) as paragraphs (i) and (j), 
respectively. (See 81 FR 25888 (April 29, 2016).) The Well Control rule 
did not, however, affect the substance of those decommissioning cost 
reporting provisions.
    On April 27, 2016, BSEE issued a Notice to Lessees and Operators 
(NTL), No. 2016-N03, Reporting Requirements for Decommissioning 
Expenditures on the OCS, providing guidance and clarification regarding 
the submission of the decommissioning cost summaries required by Sec.  
250.1704(i).
    BSEE did not include reporting of expenditures for pipeline 
decommissioning in the December 2015 final rule because the 2009 
proposed rule did not expressly refer to pipeline decommissioning 
expenditures. BSEE has determined, however, that accurate information 
about expenditures incurred for pipeline decommissioning activities is 
needed to better estimate future decommissioning costs for those 
activities.
    As BSEE explained in the December 2015 final rule, with regard to 
expenditures for other types of decommissioning activities under Sec.  
250.1704(i), summaries of actual decommissioning expenditures will help 
BSEE better estimate future decommissioning costs. (See 80 FR 75806.) 
For the same reason, summaries of actual pipeline decommissioning 
expenditures will help BSEE better estimate future decommissioning 
costs. In addition, BSEE will share its decommissioning cost estimates 
with the Bureau of Ocean Energy Management (BOEM) for use in setting 
necessary financial assurance levels to (1) minimize the possibility 
that the government will incur future financial liability for 
decommissioning pipelines where the responsible party has failed to 
carry out the required decommissioning; and (2) enhance the accuracy of 
financial assurance requirements necessary to cover future 
decommissioning liabilities.

[[Page 53350]]

    Accordingly, BSEE proposes to expand the scope of Sec.  250.1704(i) 
to require that lessees, owners of operating rights, and pipeline ROW 
holders submit certified summaries of actual expenditures for 
decommissioning of pipelines.\4\ This proposal would also authorize 
Regional Supervisors, under Sec.  250.1704(j), to require the 
submission of additional information, on a case-by-case basis, to 
support summaries of pipeline decommissioning expenditures submitted 
under Sec.  250.1704(i). This proposal rule would not otherwise revise 
the existing decommissioning cost reporting provisions.
---------------------------------------------------------------------------

    \4\ BSEE recognizes that a designated operator may submit the 
required summary of decommissioning costs on behalf of a lessee.
---------------------------------------------------------------------------

Procedural Matters

Regulatory Planning and Review (Executive Orders 12866 and 13563)

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

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

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

Regulatory Flexibility Act (RFA)

    BSEE certifies that this proposed rule would not have a significant 
economic effect on a substantial number of small entities under the RFA 
(5 U.S.C. 601 et seq.). This proposed rule would potentially affect 
offshore lessees, owners of operating rights and other operators, and 
pipeline ROW holders who perform decommissioning activities under 30 
CFR part 250, subpart Q. In the December 2015 final rule, using the 
Small Business Administration's North American Industry Classification 
System (NAICS) codes 211111 (Crude Petroleum and Natural Gas 
Extraction) and 213111 (Drilling Oil and Gas Wells), we estimated that 
a substantial number, about 90 of the 130 active companies potentially 
affected by that rule (i.e., lessees and operators), would be 
considered small entities. (See 80 FR 75808.) However, we concluded 
that the final rule would not have a significant economic effect on 
those small entities because the cost of requiring decommissioning cost 
summaries is not significant. (See id.)
    This proposed rule could affect some additional companies (i.e., 
ROW holders that were not covered by the December 2015 final rule as 
lessees or owners of operating rights) that would be required to submit 
pipeline decommissioning cost summaries. Using more recent information 
than was available to us when we published the December 2015 final 
rule, we estimate that the proposal to require reporting of pipeline 
decommissioning costs could affect approximately 111 lessees, owners of 
operating rights, and ROW holders that currently own or control DOI 
pipelines, including many companies already covered by the December 
2015 final rule. Of these 111 potentially affected entities, we 
estimate that a substantial number (66 companies) are small entities. 
Therefore, this proposed rule would affect a substantial number of 
small entities.
    However, the proposed rule would not impose significant economic 
impacts on the potentially affected small entities. The proposed 
requirement to submit pipeline decommissioning cost summaries would not 
result in significant additional costs or burdens for any affected 
entity. As indicated in the Paperwork Reduction Act section of this 
document, the annual burden of the proposed rule is estimated to be 
only 500 hours in total for all affected entities (whether or not 
small) to prepare and submit their pipeline decommissioning summaries. 
Accordingly, since the changes reflected in the proposed rule would not 
have a significant economic effect on a substantial number of small 
entities, the RFA does not require BSEE to prepare a regulatory 
flexibility analysis for this proposed rule.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This proposed rule is not a major rule under the SBREFA (5 U.S.C. 
804(2)). This rule would not:

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

    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the actions of BSEE, call 1-888-
734-3247. You may comment to the Small Business Administration (SBA) 
without fear of retaliation. Allegations of discrimination/retaliation 
filed with the SBA will be investigated for appropriate action.

Unfunded Mandates Reform Act of 1995

    This proposed rule would not impose an unfunded mandate on State, 
Tribal, or local governments or the private sector of more than $100 
million per year. The proposed rule also would not have a significant 
or unique effect on State, Tribal, or local governments or the private 
sector. Thus, a statement containing the information required by

[[Page 53351]]

the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not 
required.

Takings Implication Assessment (E.O. 12630)

    Under the criteria in E.O. 12630, this proposed rule would not 
effect a taking or otherwise have takings implications. This proposed 
rule is not a governmental action capable of interference with 
constitutionally protected property rights. Therefore, a Takings 
Implication Assessment is not required.

Federalism (E.O. 13132)

    Under the criteria in E.O. 13132, this proposed rule would not have 
federalism implications. This proposed rule would not have a 
substantial direct effect on the States or the relationship between the 
Federal and State governments. To the extent that State and local 
governments have a role in OCS activities, this proposed rule would not 
affect that role. Accordingly, a federalism summary impact statement is 
not required.

Civil Justice Reform (E.O. 12988)

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

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

Consultation With Indian Tribal Governments (E.O. 13175)

    We have evaluated this proposed rule under the Department's tribal 
consultation policy and under the criteria in E.O. 13175 and have 
determined that it would have no substantial direct effects on 
federally recognized Indian tribes. As a result, consultation under the 
Department's tribal consultation policy is not required.

Paperwork Reduction Act (PRA)

    This proposed rule contains an information collection (IC) that 
will be submitted to the OMB for review and approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). As part of 
our continuing effort to reduce paperwork and respondent burdens, BSEE 
invites the public and other Federal agencies to comment on any aspect 
of the reporting and recordkeeping burden. If you wish to comment on 
the IC aspects of this proposed rule, you may send your comments 
directly to OMB and send a copy of your comments to the Regulations and 
Standards Branch (for more information, see the DATES and ADDRESSES 
section of this document). Please refer to Decommissioning Costs for 
Pipelines, 1014-AA32, in your comments. BSEE specifically requests 
comments concerning the need for the information, its practical 
utility, the accuracy of the agency's burden estimate, and ways to 
minimize the burden. You may obtain a copy of the supporting statement 
for the new collection of information by contacting the Bureau's 
Information Collection Clearance Officer at (703) 787-1607. To see a 
copy of the entire IC request submitted to OMB, go to http://www.reginfo.gov (select Information Collection Review, Currently Under 
Review).
    The title of the collection of information for this proposed rule 
is 30 CFR part 250, subpart Q, Decommissioning Costs for Pipelines. As 
with the other decommissioning expenditure information currently 
required to be submitted to BSEE under Sec.  250.1704(i), summaries of 
actual pipeline decommissioning expenditures will help BSEE to better 
estimate future decommissioning costs for OCS pipelines. BOEM will then 
use BSEE's future pipeline decommissioning cost estimates to set 
necessary financial assurance levels to minimize or eliminate the 
possibility that the government will incur liability for future 
pipeline decommissioning.
    Potential respondents comprise Federal OCS oil, gas, and sulfur 
lessees, owners of operating rights, and pipeline ROW holders. 
Responses to this collection are mandatory. The frequency of response 
is on occasion. The IC does not include questions of a sensitive 
nature. BSEE will protect confidential commercial and proprietary 
information according to FOIA (5 U.S.C. 552) and its implementing 
regulations (43 CFR part 2), and 30 CFR 250.197 (Data and information 
to be made available to the public or for limited inspection), and 30 
CFR part 252 (OCS Oil and Gas Information Program).
    Once the requirements of this proposed rulemaking have been 
codified, BSEE will consolidate these additional burden hours into the 
primary collection for 30 CFR part 250, subpart Q, under OMB Control 
Number 1014-0010 (expiration 10/31/16; 29,437 burden hours and 
$2,152,644 non-hour cost burdens). There are no non-hour cost burdens 
associated with this proposed rulemaking. The following table is a 
breakdown of the burden estimate:

                                                  Burden Table
----------------------------------------------------------------------------------------------------------------
                                         Reporting and
       Citation 30 CFR 250               recordkeeping         Hour burden    Average number of    Annual burden
                                         requirements                          annual responses        hours
----------------------------------------------------------------------------------------------------------------
250.1704(i)......................  Submit to the Regional                 1  500 pipeline                    500
                                    Supervisor a complete                     summaries.
                                    summary of expenditures
                                    incurred within 120
                                    days after completion
                                    of each decommissioning
                                    activity (including
                                    permanently plugging
                                    any well, removal of
                                    any platform or
                                    facility,
                                    decommissioning of
                                    pipelines, etc.).
                                                            -------------------------------------
250.1704(i)......................  Submit certified            Exempt from the PRA under 5 CFR                 0
                                    statement attesting to              1320.3(i)(1).
                                    accuracy of the summary
                                    for expenditures
                                    incurred.
                                                            ----------------------------------------------------
    Total........................  ........................  ..............  500 responses......             500
----------------------------------------------------------------------------------------------------------------

    An agency may not conduct or sponsor and you are not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number.

[[Page 53352]]

National Environmental Policy Act of 1969 (NEPA)

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

Data Quality Act

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

Effects on the Nation's Energy Supply (E.O. 13211)

    This proposed rule would not be a significant energy action under 
E.O. 13211 because:

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

Clarity of This Regulation (E.O. 12866 and E.O. 12988)

    We are required by E.O. 12866 and E.O. 12988, and by the 
Presidential Memorandum of June 1, 1998, to write all rules in plain 
language. This means that each rule we publish must:

--Be logically organized;
--Use the active voice to address readers directly;
--Use clear language rather than jargon;
--Be divided into short sections and sentences; and
--Use lists and tables wherever possible.

    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us meet these requirements, your comments should be as 
specific as possible. For example, you should tell us the numbers of 
the sections or paragraphs that you find unclear, which sections or 
sentences are too long, and the sections where you feel lists or tables 
would be useful.

List of Subjects in 30 CFR Part 250

    Administrative practice and procedure, Continental Shelf, 
Environmental impact statements, Environmental protection, Government 
contracts, Investigations, Oil and gas exploration, Penalties, 
Reporting and recordkeeping requirements, Sulfur.

 Janice M. Schneider,
 Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, BSEE proposes to amend 30 
CFR part 250 as follows:

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

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

    Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 
1321(j)(1)(C), 43 U.S.C. 1334.

0
2. Amend Sec.  250.1704 by revising paragraphs (i) and (j) in the table 
to read as follows:


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

* * * * *

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


[[Page 53353]]

[FR Doc. 2016-19057 Filed 8-11-16; 8:45 am]
 BILLING CODE 4310-VH-P



                                               53348                    Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules

                                               delegation, in any case in which a                      DATES:  Submit comments by September                  including overseeing decommissioning.
                                               Commission employee delegated                           12, 2016. BSEE may not fully consider                 (See 30 CFR 250.101; 30 CFR part 250,
                                               authority under this paragraph believes                 comments received after this date. You                subpart Q.) To carry out its
                                               it appropriate, he or she may submit to                 may submit comments to the Office of                  responsibilities, BSEE regulates
                                               the Commission for its consideration the                Management and Budget (OMB) on the                    exploration, development, and
                                               question of whether an extension of                     information collection burden in this                 production of oil and natural gas to
                                               time should be granted. The delegation                  proposed rule by September 12, 2016.                  enhance safety and environmental
                                               of authority in this paragraph shall not                ADDRESSES: You may submit comments                    protection in a way that reflects
                                               prohibit the Commission, at its election,               on this proposed rulemaking by any of                 advancements in technology and new
                                               from exercising the authority set forth in              the following methods. Please use the                 information. BSEE also conducts onsite
                                               paragraph (f)(5) of this section.                       Regulation Identifier Number (RIN)                    inspections to ensure compliance with
                                                 Issued in Washington, DC, on August 8,                1014–AA32 as an identifier in your                    regulations, lease terms, and approved
                                               2016, by the Commission.                                message. BSEE may post all submitted                  plans or permits. Detailed information
                                               Christopher J. Kirkpatrick,                             comments on a public Web site.                        concerning BSEE’s regulations and
                                               Secretary of the Commission.                               1. Submit comments electronically via              guidance for the offshore industry may
                                                                                                       the Federal eRulemaking Portal: http://               be found on BSEE’s Web site at:
                                                 Note: The following appendix will not                 www.regulations.gov. In the entry titled              www.bsee.gov/Regulations-and-
                                               appear in the Code of Federal Regulations.                                                                    Guidance/index.
                                                                                                       ‘‘Enter Keyword or ID,’’ enter BSEE–
                                               Appendix to Chief Compliance Officer                    2016–0004, then click ‘‘Search.’’ Follow              Public Participation and Availability of
                                               Annual Report Requirements for                          the instructions to submit public                     Comments
                                               Futures Commission Merchants, Swap                      comments and view supporting and
                                                                                                                                                                BSEE encourages you to participate in
                                               Dealers, and Major Swap Participants;                   related materials available for this
                                                                                                                                                             this proposed rulemaking by submitting
                                               Amendments to Filing Dates—                             proposed rulemaking.
                                                                                                                                                             written comments, as discussed in the
                                               Commission Voting Summary                                  2. Mail or hand-carry comments to the
                                                                                                                                                             ADDRESSES and DATES sections of this
                                                                                                       Department of the Interior (DOI); Bureau
                                                 On this matter, Chairman Massad and                                                                         proposed rule. This proposed rule
                                                                                                       of Safety and Environmental
                                               Commissioners Bowen and Giancarlo voted                                                                       provides 30 days for public comment for
                                                                                                       Enforcement; Attention: Regulations
                                               in the affirmative. No Commissioner voted in                                                                  the following reasons. The need for
                                               the negative.                                           and Standards Branch; 45600 Woodland
                                                                                                                                                             submission of actual decommissioning
                                                                                                       Road, Sterling, VA 20166, VAE–ORP.
                                               [FR Doc. 2016–19231 Filed 8–11–16; 8:45 am]                                                                   cost information for plugging wells,
                                                                                                       Please reference ‘‘Decommissioning
                                               BILLING CODE 6351–01–P                                                                                        removing platforms, and clearing of
                                                                                                       Costs for Pipelines, 1014–AA32’’ in
                                                                                                                                                             sites was explained in a proposed rule
                                                                                                       your comments and include your name
                                                                                                                                                             published on May 27, 2009 (74 FR
                                                                                                       and return address.                                   25177) and a final rule published on
                                               DEPARTMENT OF THE INTERIOR                                 3. Comments on the information
                                                                                                                                                             December 4, 2015 (80 FR75806). That
                                                                                                       collection contained in this proposed
                                               Bureau of Safety and Environmental                                                                            final rule addressed and responded to
                                                                                                       rule should be submitted separately
                                               Enforcement                                                                                                   all of the relevant comments submitted
                                                                                                       from those on the substance of the                    on the proposed rule. This proposed
                                                                                                       proposed rule. Send comments on the                   rule would extend the existing
                                               30 CFR Part 250
                                                                                                       information collection burden in this                 requirements for submitting summaries
                                               [Docket ID: BSEE–2016–0004; 16XE1700DX                  proposed rule to: OMB, Interior Desk                  of actual decommissioning costs (30
                                               EEEE500000 EX1SF0000.DAQ000]                            Officer 1014–AA32, 202–395–5806                       CFR 250.1704(i) and (j)) to pipelines.
                                               RIN 1014–AA32                                           (fax); or email: OIRA_submission@                     The reasons for this proposed rule, as
                                                                                                       omb.eop.gov. Please send a copy of your               discussed in the Background and
                                               Oil and Gas and Sulfur Operations in                    comments to BSEE using one of the                     Purpose of Proposed Amendment
                                               the Outer Continental Shelf—                            methods previously described.                         sections of this notice are effectively the
                                               Decommissioning Costs for Pipelines                     FOR FURTHER INFORMATION CONTACT:                      same for pipelines as the reasons
                                               AGENCY:  Bureau of Safety and                           Betty Cox, Regulatory Analyst,                        discussed in the December 4, 2016 rule
                                               Environmental Enforcement,                              Regulations and Standards Branch,                     for the reporting of decommissioning
                                               Department of the Interior.                             Betty.Cox@bsee.gov, (703) 787–1616.                   costs for other facilities. BSEE does not
                                               ACTION: Proposed rule.                                  SUPPLEMENTARY INFORMATION:                            expect that public comments on this
                                                                                                                                                             proposed rule are likely to raise any
                                                                                                       BSEE’s Functions and Authority
                                               SUMMARY:    The Bureau of Safety and                                                                          significant issues that were not raised in
                                               Environmental Enforcement (BSEE)                          BSEE promotes safety, protects the                  the earlier decommissioning cost
                                               proposes to amend the regulations                       environment, and conserves natural                    reporting rulemaking. Moreover, the
                                               requiring lessees and owners of                         resources through vigorous regulatory                 affected stakeholders in the oil and gas
                                               operating rights to submit summaries of                 oversight and enforcement of certain                  industry are already familiar with the
                                               actual decommissioning expenditures                     activities on the OCS. BSEE derives its               terms and requirements of the existing
                                               incurred for certain decommissioning                    authority primarily from the Outer                    decommissioning cost reporting rule,
                                               activities related to oil and gas and                   Continental Shelf Lands Act (OCSLA),                  which would apply without change to
                                               sulfur operations on the Outer                          43 U.S.C. 1331–1356a. Congress enacted                pipelines under this proposed rule.
                                               Continental Shelf (OCS). The proposed                   OCSLA in 1953, codifying Federal
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                                                                                                                                                             Accordingly, BSEE has determined that
                                               rule would expand the scope of the                      control over the OCS and authorizing                  30 days provides a reasonable and
                                               current regulations to require lessees,                 the Secretary of the Interior (Secretary)             adequate opportunity for the public to
                                               owners of operating rights, and right-of-               to regulate oil and natural gas                       comment on this proposed rule.
                                               way (ROW) holders to submit                             exploration, development, and                            Before including your address, phone
                                               summaries of actual expenditures                        production operations on the OCS. The                 number, email address, or other
                                               incurred for pipeline decommissioning                   Secretary has authorized BSEE to                      personal identifying information in your
                                               activities.                                             perform certain of these functions,                   comment on this proposed rule,


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                                                                        Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules                                          53349

                                               however, you should be aware that your                   pipelines are found at 30 CFR 250.1700                completion of each such activity. (See
                                               entire comment—including your                            through 250.1704 and 250.1750 through                 80 FR 75806.) Specifically, the final rule
                                               personal identifying information—may                     250.1754.                                             required reporting of summaries of
                                               be made publicly available at any time.                     As of August 1, 2016, BSEE regulates               expenditures for plugging wells,
                                               While you can ask us in your comment                     4,842 active pipeline segments 3                      removing platforms and other facilities,
                                               to withhold your personal identifying                    (totaling approximately 20,837 miles)                 and clearing obstructions from sites. In
                                               information from public review, we                       and 1,553 out-of-service pipeline                     addition, the final rule authorized BSEE
                                               cannot guarantee that we will be able to                 segments (totaling approximately 2,249                to require additional supporting
                                               do so.                                                   miles). In addition, BSEE has regulatory              information regarding specific
                                                                                                        authority over 8,832 decommissioned                   decommissioning costs on a case-by-
                                               Background
                                                                                                        pipeline segments, as well as 825                     case basis. The final rule was codified
                                                  Among its responsibilities, BSEE                      pipeline segments that have been                      at 30 CFR 250.1704(h) and (i).
                                               regulates certain types of oil and gas                   approved for decommissioning.                            Effective July 28, 2016, BSEE’s Well
                                               pipelines used on the OCS. (See 30 CFR                      BSEE’s requirements for                            Control final rule revised paragraph (g)
                                               250.1000–250.1019). In general, BSEE                     decommissioning a pipeline are found                  in § 250.1704, added a new paragraph
                                               regulates pipelines or pipeline segments                 at §§ 250.1750–250.1754. Pursuant to                  (h), and redesignated existing
                                               on the OCS that are operated by oil and                  § 250.1751, requirements for                          paragraphs (h) and (i) as paragraphs (i)
                                               gas producers, as opposed to pipelines                   decommissioning a pipeline in place                   and (j), respectively. (See 81 FR 25888
                                               operated by transporters. Specifically,                  include: pigging (to remove any residual              (April 29, 2016).) The Well Control rule
                                               BSEE regulates producer-operated                         hydrocarbons from the pipeline), unless               did not, however, affect the substance of
                                               pipelines that: (1) Extend upstream                      the Regional Supervisor determines that               those decommissioning cost reporting
                                               (generally seaward) from each point on                   pigging is not practical; flushing and                provisions.
                                               the OCS at which operating                               filling the pipeline with seawater;                      On April 27, 2016, BSEE issued a
                                               responsibility transfers from a                          cutting and plugging the ends of the                  Notice to Lessees and Operators (NTL),
                                               producing operator to a transporting                     pipeline; and burying the ends at least               No. 2016–N03, Reporting Requirements
                                               operator; (2) extend upstream (generally                 3 feet below the seafloor or covering the             for Decommissioning Expenditures on
                                               seaward) from the last valve (including                  ends with protective concrete mats, if                the OCS, providing guidance and
                                               associated safety equipment) on the last                 required by the Regional Supervisor.                  clarification regarding the submission of
                                               OCS production facility and that do not                  Section 250.1751(g) also requires
                                               connect to a transporter-operated                                                                              the decommissioning cost summaries
                                                                                                        removal of all valves and other fittings              required by § 250.1704(i).
                                               pipeline on the OCS before crossing into                 that could unduly interfere with other
                                               State waters; or (3) connect production                                                                           BSEE did not include reporting of
                                                                                                        uses of the OCS.                                      expenditures for pipeline
                                               facilities on the OCS. (See § 250.1001.)                    In addition, under § 250.1754, BSEE
                                               BSEE also regulates transporter-operated                                                                       decommissioning in the December 2015
                                                                                                        has the authority to require that lessees,            final rule because the 2009 proposed
                                               pipelines that DOI and the U.S.                          owners of operating rights, and ROW
                                               Department of Transportation (DOT)                                                                             rule did not expressly refer to pipeline
                                                                                                        holders remove pipelines previously                   decommissioning expenditures. BSEE
                                               have agreed are to be regulated as DOI                   decommissioned in place if and when
                                               pipelines as well as all other OCS                                                                             has determined, however, that accurate
                                                                                                        the Regional Supervisor determines that               information about expenditures
                                               pipelines not subject to DOT                             the pipeline is an obstruction.
                                               regulation.1 (See id.)                                                                                         incurred for pipeline decommissioning
                                                                                                           BSEE’s requirements for
                                                  Pipelines regulated by BSEE generally                                                                       activities is needed to better estimate
                                                                                                        decommissioning by removing all or
                                               fall within two categories: (1) ‘‘lease                                                                        future decommissioning costs for those
                                                                                                        part of a pipeline are found at
                                               term’’ pipelines (i.e., pipelines owned                                                                        activities.
                                                                                                        § 250.1752 and include, in part, pigging
                                               and operated by a lessee or operator and                                                                          As BSEE explained in the December
                                                                                                        and flushing the pipeline (unless the
                                               located entirely within the boundaries                                                                         2015 final rule, with regard to
                                                                                                        Regional Supervisor determines that
                                               of a single lease, unitized leases, or the                                                                     expenditures for other types of
                                                                                                        pigging is not practical) before removal.
                                               contiguous leases of that lessee or                                                                            decommissioning activities under
                                               operator); or (2) ROW pipelines (i.e.,                   Purpose of Proposed Amendment                         § 250.1704(i), summaries of actual
                                               OCS pipelines owned and operated by                         In 2009, BSEE’s predecessor agency,                decommissioning expenditures will
                                               an entity other than the lessee or                       the Minerals Management Service                       help BSEE better estimate future
                                               operator of the lease(s), unit, or                       (MMS), proposed new reporting                         decommissioning costs. (See 80 FR
                                               contiguous leases in which the pipeline                  requirements related to lease term                    75806.) For the same reason, summaries
                                               is contained, as well as pipelines that                  pipelines when MMS approves a lease                   of actual pipeline decommissioning
                                               cross unleased areas).2 Among other                      assignment. (See 74 FR 25177 (May 27,                 expenditures will help BSEE better
                                               things, BSEE approves the installation,                  2009).) MMS also proposed to require                  estimate future decommissioning costs.
                                               modification, and decommissioning of                     the submission of information on                      In addition, BSEE will share its
                                               all lease term and ROW pipelines, and                    expenditures for decommissioning of                   decommissioning cost estimates with
                                               the modification or relinquishment of                    wells, platforms and other facilities and             the Bureau of Ocean Energy
                                               all pipeline ROW grants on the OCS.                      for site clearance. (See id.)                         Management (BOEM) for use in setting
                                               BSEE’s regulations for decommissioning                      In a final rule published on December              necessary financial assurance levels to
                                                                                                        4, 2015, BSEE amended its regulations                 (1) minimize the possibility that the
                                                  1 BSEE-regulated pipelines are also referred to as
                                                                                                                                                              government will incur future financial
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                                               ‘‘DOI pipelines.’’ See 30 CFR 250.1001. Pipelines
                                                                                                        to require lessees and owners of
                                               subject to DOT regulations are commonly referred         operating rights to submit summaries of               liability for decommissioning pipelines
                                               to as ‘‘DOT pipelines,’’ see id., and are regulated by   actual decommissioning expenditures                   where the responsible party has failed to
                                               the DOT Pipeline and Hazardous Materials Safety          for certain required decommissioning                  carry out the required decommissioning;
                                               Administration (PHMSA).                                                                                        and (2) enhance the accuracy of
                                                  2 ROW pipelines also include all DOI pipelines        activities within 120 days after
                                               not defined as lease term pipelines. See 30 CFR
                                                                                                                                                              financial assurance requirements
                                               250.1001 for definitions of lease term pipelines and       3 BSEE assigns pipeline segment numbers as          necessary to cover future
                                               ROW pipelines.                                           specific pipeline identifiers.                        decommissioning liabilities.


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                                               53350                   Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules

                                                  Accordingly, BSEE proposes to                        regulatory approaches that reduce                     small entities. The proposed
                                               expand the scope of § 250.1704(i) to                    burdens and maintain flexibility and                  requirement to submit pipeline
                                               require that lessees, owners of operating               freedom of choice for the public where                decommissioning cost summaries
                                               rights, and pipeline ROW holders                        these approaches are relevant, feasible,              would not result in significant
                                               submit certified summaries of actual                    and consistent with regulatory                        additional costs or burdens for any
                                               expenditures for decommissioning of                     objectives. It also emphasizes that                   affected entity. As indicated in the
                                               pipelines.4 This proposal would also                    regulations must be based on the best                 Paperwork Reduction Act section of this
                                               authorize Regional Supervisors, under                   available science and that the                        document, the annual burden of the
                                               § 250.1704(j), to require the submission                rulemaking process must allow for                     proposed rule is estimated to be only
                                               of additional information, on a case-by-                public participation and an open                      500 hours in total for all affected entities
                                               case basis, to support summaries of                     exchange of ideas. BSEE developed this                (whether or not small) to prepare and
                                               pipeline decommissioning expenditures                   proposed rule in a manner consistent                  submit their pipeline decommissioning
                                               submitted under § 250.1704(i). This                     with these requirements.                              summaries. Accordingly, since the
                                               proposal rule would not otherwise                       Regulatory Flexibility Act (RFA)                      changes reflected in the proposed rule
                                               revise the existing decommissioning                                                                           would not have a significant economic
                                               cost reporting provisions.                                 BSEE certifies that this proposed rule             effect on a substantial number of small
                                                                                                       would not have a significant economic                 entities, the RFA does not require BSEE
                                               Procedural Matters                                      effect on a substantial number of small               to prepare a regulatory flexibility
                                               Regulatory Planning and Review                          entities under the RFA (5 U.S.C. 601 et               analysis for this proposed rule.
                                               (Executive Orders 12866 and 13563)                      seq.). This proposed rule would
                                                                                                       potentially affect offshore lessees,                  Small Business Regulatory Enforcement
                                                  Executive Order (E.O.) 12866 provides                owners of operating rights and other                  Fairness Act (SBREFA)
                                               that OMB, Office of Information and                     operators, and pipeline ROW holders
                                               Regulatory Affairs (OIRA), will review                                                                          This proposed rule is not a major rule
                                                                                                       who perform decommissioning                           under the SBREFA (5 U.S.C. 804(2)).
                                               all significant rules. BSEE has                         activities under 30 CFR part 250,
                                               determined that this proposed rule                                                                            This rule would not:
                                                                                                       subpart Q. In the December 2015 final
                                               would not be a significant regulatory                   rule, using the Small Business                        —Have an annual effect on the economy
                                               action as defined by section 3(f) of E.O.               Administration’s North American                         of $100 million or more;
                                               12866 because:                                          Industry Classification System (NAICS)                —Cause a major increase in costs or
                                               —It is not expected to have an annual                   codes 211111 (Crude Petroleum and                       prices for consumers, individual
                                                  effect on the economy of $100 million                Natural Gas Extraction) and 213111                      industries, Federal, State, or local
                                                  or more;                                             (Drilling Oil and Gas Wells), we                        government agencies, or geographic
                                               —It would not adversely affect in a                     estimated that a substantial number,                    regions; or
                                                  material way the economy,                            about 90 of the 130 active companies                  —Have significant adverse effects on
                                                  productivity, competition, jobs, the                 potentially affected by that rule (i.e.,                competition, employment,
                                                  environment, public health or safety,                lessees and operators), would be                        investment, productivity, innovation,
                                                  or State, local, or tribal governments               considered small entities. (See 80 FR                   or the ability of U.S.-based enterprises
                                                  or communities;                                      75808.) However, we concluded that the                  to compete with foreign-based
                                               —It would not create a serious                          final rule would not have a significant                 enterprises.
                                                  inconsistency or otherwise interfere                 economic effect on those small entities
                                                  with an action taken or planned by                   because the cost of requiring                           Your comments are important. The
                                                  another agency;                                      decommissioning cost summaries is not                 Small Business and Agriculture
                                               —It would not materially alter the                      significant. (See id.)                                Regulatory Enforcement Ombudsman
                                                  budgetary impact of entitlements,                       This proposed rule could affect some               and 10 Regional Fairness Boards were
                                                  grants, user fees, or loan programs, or              additional companies (i.e., ROW holders               established to receive comments from
                                                  the rights or obligations of their                   that were not covered by the December                 small businesses about Federal agency
                                                  recipients; and                                      2015 final rule as lessees or owners of               enforcement actions. The Ombudsman
                                               —It would not raise novel legal or                      operating rights) that would be required              will annually evaluate the enforcement
                                                  policy issues arising out of legal                   to submit pipeline decommissioning                    activities and rate each agency’s
                                                  mandates, the President’s priorities,                cost summaries. Using more recent                     responsiveness to small business. If you
                                                  or the principles set forth in E.O.                  information than was available to us                  wish to comment on the actions of
                                                  12866.                                               when we published the December 2015                   BSEE, call 1–888–734–3247. You may
                                                                                                       final rule, we estimate that the proposal             comment to the Small Business
                                                 Accordingly, BSEE has not prepared
                                                                                                       to require reporting of pipeline                      Administration (SBA) without fear of
                                               an economic analysis beyond the
                                                                                                       decommissioning costs could affect                    retaliation. Allegations of
                                               analysis required under the Paperwork
                                                                                                       approximately 111 lessees, owners of                  discrimination/retaliation filed with the
                                               Reduction Act, and OIRA has not
                                                                                                       operating rights, and ROW holders that                SBA will be investigated for appropriate
                                               reviewed this proposed rule.
                                                                                                       currently own or control DOI pipelines,               action.
                                                 E.O. 13563 reaffirms the principles of
                                               E.O. 12866 while calling for                            including many companies already                      Unfunded Mandates Reform Act of 1995
                                               improvements in the Nation’s regulatory                 covered by the December 2015 final
                                                                                                       rule. Of these 111 potentially affected                 This proposed rule would not impose
                                               system to promote predictability, to
                                                                                                                                                             an unfunded mandate on State, Tribal,
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                                               reduce uncertainty, and to use the best,                entities, we estimate that a substantial
                                                                                                       number (66 companies) are small                       or local governments or the private
                                               most innovative, and least burdensome
                                                                                                       entities. Therefore, this proposed rule               sector of more than $100 million per
                                               tools for achieving regulatory ends. E.O.
                                                                                                       would affect a substantial number of                  year. The proposed rule also would not
                                               13563 directs agencies to consider
                                                                                                       small entities.                                       have a significant or unique effect on
                                                 4 BSEE recognizes that a designated operator may         However, the proposed rule would                   State, Tribal, or local governments or
                                               submit the required summary of decommissioning          not impose significant economic                       the private sector. Thus, a statement
                                               costs on behalf of a lessee.                            impacts on the potentially affected                   containing the information required by


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                                                                             Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules                                                                                      53351

                                               the Unfunded Mandates Reform Act (2                                    consultation policy and under the                                              Decommissioning Costs for Pipelines.
                                               U.S.C. 1531 et seq.) is not required.                                  criteria in E.O. 13175 and have                                                As with the other decommissioning
                                                                                                                      determined that it would have no                                               expenditure information currently
                                               Takings Implication Assessment (E.O.
                                                                                                                      substantial direct effects on federally                                        required to be submitted to BSEE under
                                               12630)
                                                                                                                      recognized Indian tribes. As a result,                                         § 250.1704(i), summaries of actual
                                                 Under the criteria in E.O. 12630, this                               consultation under the Department’s                                            pipeline decommissioning expenditures
                                               proposed rule would not effect a taking                                tribal consultation policy is not                                              will help BSEE to better estimate future
                                               or otherwise have takings implications.                                required.                                                                      decommissioning costs for OCS
                                               This proposed rule is not a
                                               governmental action capable of                                         Paperwork Reduction Act (PRA)                                                  pipelines. BOEM will then use BSEE’s
                                               interference with constitutionally                                                                                                                    future pipeline decommissioning cost
                                                                                                                         This proposed rule contains an
                                               protected property rights. Therefore, a                                                                                                               estimates to set necessary financial
                                                                                                                      information collection (IC) that will be
                                               Takings Implication Assessment is not                                                                                                                 assurance levels to minimize or
                                                                                                                      submitted to the OMB for review and
                                               required.                                                              approval under the Paperwork                                                   eliminate the possibility that the
                                                                                                                      Reduction Act of 1995 (44 U.S.C. 3501                                          government will incur liability for
                                               Federalism (E.O. 13132)                                                                                                                               future pipeline decommissioning.
                                                                                                                      et seq.). As part of our continuing effort
                                                  Under the criteria in E.O. 13132, this                              to reduce paperwork and respondent                                                Potential respondents comprise
                                               proposed rule would not have                                           burdens, BSEE invites the public and                                           Federal OCS oil, gas, and sulfur lessees,
                                               federalism implications. This proposed                                 other Federal agencies to comment on                                           owners of operating rights, and pipeline
                                               rule would not have a substantial direct                               any aspect of the reporting and                                                ROW holders. Responses to this
                                               effect on the States or the relationship                               recordkeeping burden. If you wish to
                                               between the Federal and State                                                                                                                         collection are mandatory. The frequency
                                                                                                                      comment on the IC aspects of this                                              of response is on occasion. The IC does
                                               governments. To the extent that State
                                                                                                                      proposed rule, you may send your                                               not include questions of a sensitive
                                               and local governments have a role in
                                                                                                                      comments directly to OMB and send a                                            nature. BSEE will protect confidential
                                               OCS activities, this proposed rule would
                                                                                                                      copy of your comments to the                                                   commercial and proprietary information
                                               not affect that role. Accordingly, a
                                                                                                                      Regulations and Standards Branch (for                                          according to FOIA (5 U.S.C. 552) and its
                                               federalism summary impact statement is
                                                                                                                      more information, see the DATES and                                            implementing regulations (43 CFR part
                                               not required.
                                                                                                                      ADDRESSES section of this document).
                                                                                                                                                                                                     2), and 30 CFR 250.197 (Data and
                                               Civil Justice Reform (E.O. 12988)                                      Please refer to Decommissioning Costs
                                                                                                                                                                                                     information to be made available to the
                                                 This proposed rule complies with the                                 for Pipelines, 1014–AA32, in your
                                                                                                                                                                                                     public or for limited inspection), and 30
                                               requirements of E.O. 12988, Civil Justice                              comments. BSEE specifically requests
                                                                                                                      comments concerning the need for the                                           CFR part 252 (OCS Oil and Gas
                                               Reform (February 7, 1996). Specifically,                                                                                                              Information Program).
                                               this rule:                                                             information, its practical utility, the
                                                                                                                      accuracy of the agency’s burden                                                   Once the requirements of this
                                               —Meets the criteria of section 3(a) of
                                                 E.O. 12988 requiring that all                                        estimate, and ways to minimize the                                             proposed rulemaking have been
                                                 regulations be reviewed to eliminate                                 burden. You may obtain a copy of the                                           codified, BSEE will consolidate these
                                                 drafting errors and ambiguity and be                                 supporting statement for the new                                               additional burden hours into the
                                                 written to minimize litigation; and                                  collection of information by contacting                                        primary collection for 30 CFR part 250,
                                               —Meets the criteria of section 3(b)(2) of                              the Bureau’s Information Collection                                            subpart Q, under OMB Control Number
                                                 E.O. 12988 requiring that all                                        Clearance Officer at (703) 787–1607. To                                        1014–0010 (expiration 10/31/16; 29,437
                                                 regulations be written in clear                                      see a copy of the entire IC request                                            burden hours and $2,152,644 non-hour
                                                 language and contain clear legal                                     submitted to OMB, go to http://                                                cost burdens). There are no non-hour
                                                 standards.                                                           www.reginfo.gov (select Information                                            cost burdens associated with this
                                                                                                                      Collection Review, Currently Under                                             proposed rulemaking. The following
                                               Consultation With Indian Tribal                                        Review).
                                               Governments (E.O. 13175)                                                                                                                              table is a breakdown of the burden
                                                                                                                         The title of the collection of                                              estimate:
                                                 We have evaluated this proposed rule                                 information for this proposed rule is 30
                                               under the Department’s tribal                                          CFR part 250, subpart Q,

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

                                               250.1704(i) ........................     Submit to the Regional Supervisor a complete sum-                                                           1     500 pipeline summaries ..                  500
                                                                                          mary of expenditures incurred within 120 days
                                                                                          after completion of each decommissioning activity
                                                                                          (including permanently plugging any well, removal
                                                                                          of any platform or facility, decommissioning of
                                                                                          pipelines, etc.).

                                               250.1704(i) ........................     Submit certified statement attesting to accuracy of                                          Exempt from the PRA under 5 CFR                                    0
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                                                                                          the summary for expenditures incurred.                                                               1320.3(i)(1).

                                                    Total ...........................   ....................................................................................   ........................   500 responses .................            500



                                                 An agency may not conduct or                                         respond to, a collection of information                                        unless it displays a currently valid OMB
                                               sponsor and you are not required to                                                                                                                   control number.



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                                               53352                   Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules

                                               National Environmental Policy Act of                    —It is not a significant regulatory action            List of Subjects in 30 CFR Part 250
                                               1969 (NEPA)                                              under E.O. 12866;
                                                                                                       —It is not likely to have a significant                 Administrative practice and
                                                 This proposed rule meets the criteria                                                                       procedure, Continental Shelf,
                                               set forth in 516 Departmental Manual                     adverse effect on the supply,
                                                                                                        distribution or use of energy; and                   Environmental impact statements,
                                               (DM) 15.4C(1) for a categorical
                                               exclusion because it involves                           —It has not been designated as a                      Environmental protection, Government
                                               modification of existing regulations, the                significant energy action by the                     contracts, Investigations, Oil and gas
                                               impacts of which would be limited to                     Administrator of OIRA.                               exploration, Penalties, Reporting and
                                               administrative or economic effects with                                                                       recordkeeping requirements, Sulfur.
                                                                                                       Clarity of This Regulation (E.O. 12866
                                               minimal environmental impacts.                          and E.O. 12988)                                       Janice M. Schneider,
                                                 We have also analyzed this proposed
                                                                                                          We are required by E.O. 12866 and                  Assistant Secretary, Land and Minerals
                                               rule to determine if it meets any of the
                                                                                                       E.O. 12988, and by the Presidential                   Management.
                                               extraordinary circumstances set forth in
                                               43 CFR 46.215 that would require an                     Memorandum of June 1, 1998, to write                    For the reasons stated in the
                                               environmental assessment or an                          all rules in plain language. This means               preamble, BSEE proposes to amend 30
                                               environmental impact statement for                      that each rule we publish must:                       CFR part 250 as follows:
                                               actions otherwise eligible for a                        —Be logically organized;
                                               categorical exclusion. We have                          —Use the active voice to address                      PART 250—OIL AND GAS AND
                                               concluded that this proposed rule                          readers directly;                                  SULFUR OPERATIONS IN THE OUTER
                                               would not meet any of the criteria for                  —Use clear language rather than jargon;               CONTINENTAL SHELF
                                               extraordinary circumstances.                            —Be divided into short sections and
                                               Data Quality Act                                           sentences; and                                     ■ 1. The authority citation for part 250
                                                                                                       —Use lists and tables wherever                        continues to read as follows:
                                                 In developing this proposed rule, we                     possible.
                                               did not conduct or use a study,                                                                                 Authority: 30 U.S.C. 1751, 31 U.S.C. 9701,
                                               experiment, or survey requiring peer                      If you feel that we have not met these              33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334.
                                               review under the Data Quality Act (44                   requirements, send us comments by one
                                                                                                       of the methods listed in the ADDRESSES                ■ 2. Amend § 250.1704 by revising
                                               U.S.C. 3516 et seq.,                                                                                          paragraphs (i) and (j) in the table to read
                                                 Public Law 106–554, app. C § 515,                     section. To better help us meet these
                                                                                                       requirements, your comments should be                 as follows:
                                               114 Stat. 2763, 2763A–153–154).
                                                                                                       as specific as possible. For example, you             § 250.1704 What decommissioning
                                               Effects on the Nation’s Energy Supply                   should tell us the numbers of the
                                               (E.O. 13211)                                                                                                  applications and reports must I submit and
                                                                                                       sections or paragraphs that you find                  when must I submit them?
                                                 This proposed rule would not be a                     unclear, which sections or sentences are
                                               significant energy action under E.O.                    too long, and the sections where you                  *        *   *      *        *
                                               13211 because:                                          feel lists or tables would be useful.



                                                       Decommissioning applications and reports                          When to submit                                    Instructions


                                                           *                   *                   *                           *                        *                    *                    *
                                               (i) A certified summary of expenditures for permanently            Within 120 days after com-        Submit to the Regional Supervisor a complete sum-
                                                  plugging any well, removal of any platform or other fa-          pletion of each decom-             mary of expenditures actually incurred for each de-
                                                  cility, clearance of any site after wells have been              missioning activity speci-         commissioning activity (including, but not limited to,
                                                  plugged or platforms or facilities removed, and decom-           fied in this paragraph.            the use of rigs, vessels, equipment, supplies and ma-
                                                  missioning of pipelines.                                                                            terials; 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 Super-
                                                                                                                                                      visor may provide specific instructions or guidance
                                                                                                                                                      regarding how to submit the certified summary.
                                               (j) If requested by the Regional Supervisor, additional in-        Within a reasonable time          The Regional Supervisor will review the summary and
                                                  formation in support of any decommissioning activity             as determined by the Re-           may provide specific instructions or guidance regard-
                                                  expenditures included in a summary submitted under               gional Supervisor.                 ing the submission of additional information (includ-
                                                  paragraph (i) of this section.                                                                      ing, but not limited to, copies of contracts and in-
                                                                                                                                                      voices), if requested, to complete or otherwise sup-
                                                                                                                                                      port the summary.
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                                                                        Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Proposed Rules                                         53353

                                               [FR Doc. 2016–19057 Filed 8–11–16; 8:45 am]             Skin Conditions.’’ Copies of comments                 Veterans Benefits Administration
                                               BILLING CODE 4310–VH–P                                  received will be available for public                 (VBA). The workgroup was comprised
                                                                                                       inspection in the Office of Regulation                of subject matter experts (SMEs) from
                                                                                                       Policy and Management, Room 1068,                     within VA, DoD, and medical academia.
                                               DEPARTMENT OF VETERANS                                  between the hours of 8:00 a.m. and 4:30               In addition, members from several
                                               AFFAIRS                                                 p.m., Monday through Friday (except                   Veterans Service Organizations (VSOs)
                                                                                                       holidays). Please call (202) 461–4902 for             were invited to participate as
                                               38 CFR Part 4                                           an appointment. (This is not a toll free              representatives from the public. The
                                                                                                       number.) In addition, during the                      Work Group held a public forum in New
                                               RIN 2900–AP27
                                                                                                       comment period, comments may be                       York City during January 2012, where
                                               Schedule for Rating Disabilities; Skin                  viewed online through the Federal                     several SMEs gave presentations
                                               Conditions                                              Docket Management System (FDMS) at                    focused on their particular area(s) of
                                                                                                       www.Regulations.gov.                                  expertise.
                                               AGENCY:    Department of Veterans Affairs.              FOR FURTHER INFORMATION CONTACT: Gary                   After the public forum, the Work
                                               ACTION:   Proposed rule.                                Reynolds, M.D., Regulations Staff                     Group met periodically to continue the
                                                                                                       (211C), Compensation Service, Veterans                revision efforts. Participants from VBA,
                                               SUMMARY:   The Department of Veterans                   Benefits Administration, Department of                VHA, medical academia, and VSO
                                               Affairs (VA) proposes to amend the                      Veterans Affairs, 810 Vermont Avenue                  representatives continued work within
                                               portion of the VA Schedule for Rating                   NW., Washington, DC 20420, (202) 461–                 their areas of expertise. The regulation
                                               Disabilities (VASRD or Rating Schedule)                 9700. (This is not a toll-free number.)               drafting phase began in September 2013,
                                               that addresses skin conditions. The                                                                           and continues through the publication
                                                                                                       SUPPLEMENTARY INFORMATION: The
                                               purpose of these changes is to                                                                                of this proposed rule. The rule VA
                                                                                                       National Defense Authorization Act For
                                               incorporate medical advances that have                                                                        proposes is consistent with updating
                                                                                                       Fiscal Year 2004, sec. 1501–07, Public
                                               occurred since the last review, update                                                                        and improving criteria by using
                                                                                                       Law 108–136, 117 Stat. 1392,
                                               current medical terminology, and                                                                              validated severity ratings specific to the
                                                                                                       established the Veterans’ Disability
                                               provide clear evaluation criteria. The                                                                        skin for each of the disability rating
                                                                                                       Benefits Commission (Commission).
                                               proposed rule reflects advances in                                                                            levels. As discussed in more detail
                                                                                                       Section 1502 of Public Law 108–136
                                               medical knowledge, recommendations                                                                            below, the newly adopted classifications
                                                                                                       mandated the Commission to study
                                               from the Skin Disorders Work Group,                                                                           are derived from current medical
                                                                                                       ways to improve the disability
                                               which is comprised of subject matter                                                                          practice.
                                                                                                       compensation system for disabled
                                               experts from both the Veterans Benefits
                                                                                                       military veterans. The Commission                     Schedule of Ratings—Skin Conditions
                                               Administration and the Veterans Health
                                                                                                       consulted with the Institute of Medicine
                                               Administration, and comments from                                                                             General Rating Formula for Skin
                                                                                                       (IOM) to review the medical aspects of
                                               experts and the public gathered as part                                                                       Disorders
                                                                                                       the current disability compensation
                                               of a public forum. The public forum,                                                                            Section 4.118 currently lists 30
                                                                                                       policies for veterans. In 2007, the IOM
                                               focusing on revisions to the skin                                                                             diagnostic codes (DCs) encompassing
                                                                                                       released its report titled, ‘‘A 21st
                                               conditions section of the VASRD, was                                                                          conditions involving injury or disease of
                                                                                                       Century System for Evaluating Veterans
                                               held in January 2012.                                                                                         the skin. VA proposes to revise these
                                                                                                       for Disability Benefits.’’
                                               DATES: Comment Date: Comments must                         The IOM Report was notable in                      codes, through addition, removal, or
                                               be received by VA on or before October                  several respects. The IOM observed, in                other revisions, to reflect current
                                               11, 2016.                                               part, that the VASRD was inadequate at                medical science, terminology, and
                                                 Applicability Date: The provisions of                 times because it contained obsolete                   functional impairment.
                                               this rulemaking shall apply to all                      information and did not sufficiently                    VA would delete the current
                                               applications for benefits that are                      integrate current and accepted                        introductory paragraph to § 4.118. VA
                                               received by VA or that are pending                      diagnostic procedures. In addition, the               added the current paragraph to explain
                                               before the agency of original jurisdiction              IOM observed that the current body                    the applicability of the 2008
                                               on or after the effective date of the final             system organization of the VASRD does                 amendments to § 4.118, DCs 7800, 7801,
                                               rule. The Secretary does not intend for                 not reflect current knowledge of the                  7802, 7804, and 7805. This rulemaking
                                               the provisions of this rulemaking to                    relationships between conditions and                  would make further amendments and
                                               apply to claims that have been certified                comorbidities. Institute of Medicine,                 would render outdated the current
                                               for appeal to the Board of Veterans’                    Committee on Medical Evaluation of                    introductory paragraph. VA would add
                                               Appeals or are pending before the Board                 Veterans for Disability Compensation,                 an applicability date paragraph to the
                                               of Veterans’ Appeals, the United States                 ‘‘A 21st Century System for Evaluating                dates section to explain this
                                               Court of Appeals for Veterans Claims, or                Veterans for Disability Benefits,’’ 113               rulemaking’s applicability. The existing
                                               the United States Court of Appeals for                  (Michael McGeary et al. eds. 2007).                   provisions in § 4.118 concerning review
                                               the Federal Circuit.                                       Following release of the IOM report,               of ratings and effective dates merely
                                               ADDRESSES: Written comments may be                      VA created a Skin Disorders Work                      reflect generally applicable principles
                                               submitted through                                       Group (Work Group). The goals adopted                 that need not be restated in the rating
                                               www.Regulations.gov; by mail or hand-                   by the Work Group were to: 1) improve                 schedule.
                                               delivery to Director, Regulation Policy                 and update the criteria that VA uses to                 VA would add a new introductory
                                               and Management (02REG), Department                      assign levels of disability after service             paragraph to state that, for the purposes
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                                               of Veterans Affairs, 810 Vermont                        connection is granted; 2) improve the                 of § 4.118, systemic therapy is treatment
                                               Avenue NW., Room 1068, Washington,                      level of fairness in adjudication of                  that is administered through any route
                                               DC 20420; or by fax to (202) 273–9026.                  benefits related to service connected                 (orally, injection, suppository,
                                               (This is not a toll free number.)                       disabilities of Veterans; and 3) invite               intranasally) other than the skin, and
                                               Comments should indicate that they are                  public participation. The Work Group                  topical therapy is treatment that is
                                               submitted in response to ‘‘RIN 2900–                    was led by co-chairs from the Veterans                administered through the skin. On
                                               AP27-Schedule for Rating Disabilities;                  Health Administration (VHA) and                       March 1, 2016, the United States Court


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Document Created: 2018-02-09 11:33:36
Document Modified: 2018-02-09 11:33:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesSubmit comments by September 12, 2016. BSEE may not fully consider comments received after this date. You may submit comments to the Office of Management and Budget (OMB) on the information collection burden in this proposed rule by September 12, 2016.
ContactBetty Cox, Regulatory Analyst, Regulations and Standards Branch, [email protected], (703) 787-1616.
FR Citation81 FR 53348 
RIN Number1014-AA32
CFR AssociatedAdministrative Practice and Procedure; Continental Shelf; Environmental Impact Statements; Environmental Protection; Government Contracts; Investigations; Oil and Gas Exploration; Penalties; Reporting and Recordkeeping Requirements and Sulfur

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