2008 OCS Natural Gas and Oil Program

Advance Notice of Proposed Rules: (none)

Notice of Proposed Rules (2008)

	Technical Changes to Production Measurement and Training Requirements (72 KB PDF) Regulatory Identifier Number: 1010-AD50 Federal Register Cite: Vol. 73 No. 181, FR 53793 (9/17/08) Summary: This proposed rule would revise the production measurement regulations to establish meter proving, meter verification/calibration, and well test requirements after hurricanes and other vents beyond the control of the lessee. This rulemaking would eliminate some reporting burden on industry, and it would eliminate the need for MMS to grant waivers to the reporting requirements in certain situations. The proposed rule would also add new definitions providing clarity in the training regulations, which should lead to improved training of Outer Continental Shelf workers. Public Comments
	Extension of Comment Period for Proposed Rule Allocation and Disbursement of Royalties, Rentals, and Bonuses—Oil and Gas, Offshore (54 KB PDF) Regulatory Identifier Number: 1010-AD46 Federal Register Cite: Vol. 73, No. 145, FR 43673 (07/28/08) Summary: The Minerals Management Service hereby gives notice that it is extending the public comment period on a proposed rule, which was published in the Federal Register on May 27, 2008, with public comments due by July 28, 2008. The proposed rule would amend the regulations on distribution and disbursement of royalties, rentals, and bonuses to include the allocation and disbursement of revenues from certain leases on the Gulf of Mexico Outer Continental Shelf in accordance with the provisions of the Gulf of Mexico Energy Security Act of 2006. (73 FR 30331, May 27, 2008). Public Comments
	Alternative Energy and Alternate Uses of Existing Facilities on the Outer Continental Shelf (1151 KB PDF) Regulatory Identifier Number: 1010-AD30 Federal Register Cite: Vol. 73, No. 132, FR 39376 (07/09/08) Summary: The MMS is proposing regulations that would establish a program to grant leases, easements, and rights-of-way (ROW) for alternative energy project activities on the Outer Continental Shelf (OCS), as well as for certain previously unauthorized activities that involve the alternate use of existing facilities located on the OCS; and would establish the methods for sharing revenues generated by this program with nearby coastal States. These regulations are also intended to ensure the orderly, safe, and environmentally responsible development of alternative energy sources on the OCS.
	Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Requirements for Subsurface Safety Valve Equipment (71 KB PDF) Regulatory Identifier Number: 1010–AD45 Federal Register Cite: Vol. 73, No. 114, FR 33333 (06/12/2008) Summary: The MMS proposes to incorporate the Eleventh Edition of the American Petroleum Institute’s Specification for Subsurface Safety Valve Equipment (API Spec 14A), into the regulations. The rule also proposes that lessees and operators provide supporting design verification information for subsurface safety valves intended for use in high pressure high temperature environments. The MMS proposes to incorporate the Eleventh Edition of API Spec 14A because it updated the design validation and functional testing requirements, incorporated new design changes, and corrected ambiguous areas open to misinterpretation. These proposed changes would ensure that lessees and operators use the best available and safest technologies while operating in the Outer Continental Shelf. Public Comments
	Allocation and Disbursement of Royalties, Rentals, and Bonuses-- Oil and Gas, Offshore (60 KB PDF)

Regulatory Identifier Number: 1010-AD46
Federal Register Cite: Vol. 73, No. 102 (05/27/2008)

Summary: The MMS proposes to amend the regulations on distribution and disbursement of royalties, rentals, and bonuses to include the allocation and disbursement of revenues from certain leases on the Gulf of Mexico Outer Continental Shelf in accordance with the provisions of the Gulf of Mexico Energy Security Act of 2006. The regulations would set forth the formula and methodology for calculating and allocating revenues to the States of Alabama, Louisiana, Mississippi, and Texas and their eligible political subdivisions. This proposed rule seeks to establish and ensure that the process for implementing the Gulf of Mexico Energy Security Act of 2006 provisions and the resulting distribution of revenues is accurate, transparent, and fully complies with our statutory responsibilities.

Public Comments

Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Pipelines and Pipeline Rights-of-Way; Reopening Public Comment Period (47.9 KB PDF) Regulatory Identifier Number: 1010-AD11 Federal Register Cite: Vol. 73, No. 35, FR 9506 (02/21/2008) Summary: This action reopens the period for submitting comments on the proposed rule published on October 3, 2007. That proposed rule requested comments on the revisions to Outer Continental Shelf pipeline and pipeline rights-of-way regulations. The comment period has been reopened to March 17, 2008. The MMS will hold a public meeting to discuss the proposed rule in the Gulf of Mexico Regional Office on February 22, 2008. Public Comments

Bonus or Royalty Credits for Relinquishing Certain Leases Offshore Florida (81 KB PDF)

Regulatory Identifier Number: 1010-AD44
Federal Register Cite: Vol. 73, No. 22, FR 6073 (02/01/2008)

Summary: The MMS proposes to amend its regulations for oil and gas leases on the Outer Continental Shelf to implement a mandate in the Gulf of Mexico Energy Security Act of 2006. This proposed rule would (1) provide a credit to lessees who relinquish certain eligible leases in the Gulf of Mexico; (2) define eligible leases as those within 125 miles of the Florida coast in the Eastern Planning Area and certain leases within 100 miles of the Florida coast in the Central Planning Area; and (3) allow lessees to use the credits in lieu of monetary payment for either a lease bonus bid or royalty due on oil and gas production from most other leases in the Gulf of Mexico or to transfer the credits to other Gulf of Mexico lessees for their use.

Public Comments

Notices (2008)
 

Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of Mexico (GOM) Oil and Gas Lease Sale 207 (79 KB PDF) Federal Register Cite: Vol. 73, No. 138, FR 41111 (07/17/2008) Summary: On Wednesday, August 20, 2008, the MMS will open and publicly announce bids received for blocks offered in WPA Oil and Gas Lease Sale 207, pursuant to the OCS Lands Act (43 U.S.C. 1331–1356, as amended) and the regulations issued there `under (30 CFR Part 256). The Final Notice of Sale 207 Package (FNOS 207 Package) contains information essential to bidders, and bidders are charged with the knowledge of the documents contained in the Package.

	Notice of the Annual Price Threshold Determination (64 KB PDF) Federal Register Cite: Vol. 73, No. 106, FR 31502 (06/02/2008) Summary: This notice provides the official MMS documentation of which Gulf of Mexico price thresholds have been exceeded by annual market prices for oil or gas, by lease vintage, for calendar year 2007. This notice also explains in detail how MMS calculates the annual oil and gas prices and applicable price thresholds used to determine whether royalty relief applies in calendar year 2007 for our various deepwater and deep depth royalty relief programs.
	Notice of Nominations Received and Proposed Limited Alternative Energy Leases on the Outer Continental Shelf (OCS) and Initiation of Coordination and Consultation; Correction (65 KB PDF) Federal Register Cite: Vol. 73, No. 84, FR 23490 (04/30/2008) Summary: The MMS published a Notice in the Federal Register on Friday, April 18, 2008 (73 FR 21152), announcing proposed areas of the OCS for limited alternative energy leasing and requesting indications of competitive interest in such proposed lease areas. That original Notice also requested public comment on the areas proposed for limited leasing. This correction Notice corrects the table in the original Notice identifying the proposed lease areas for alternative energy resource data collection and technology testing activities on the Outer Continental Shelf (OCS).
	Notice of Nominations Received and Proposed Limited Alternative Energy Leases on the Outer Continental Shelf (OCS) and Initiation of Coordination and Consultation (65 KB PDF)

Federal Register Cite: Vol. 73, No. 76, FR 21152 (04/18/2008)

Summary: On November 6, 2007, the Minerals Management Service (MMS) published in the Federal Register (72 FR 214, pp. 62673–62675) a request for information and nominations of areas for leases authorizing alternative energy resource assessment and technology testing activities pursuant to subsection 8(p) of the OCS Lands Act, as amended. We received over 40 nominations of areas for limited leases authorizing such activities relating to wind, wave, and ocean current energy resources on the OCS. The MMS has considered the nominations in light of relevant criteria for proceeding with the issuance of leases. As required by subsection 8(p), MMS must issue such leases on a competitive basis unless we determine after public notice that there is no competitive interest. Subsection 8(p) also requires MMS to coordinate and consult with relevant Federal agencies and affected State and local governments concerning the issuance of OCS alternative energy leases. This Notice provides the required public notice of proposed leases by announcing the nominations that MMS has decided to process as a priority and inquiring as to the existence of any competitive interest in these nominated areas. Also, with this announcement we intend to inform all interested and affected parties of these nominations and invite comments and information—including information on environmental issues and concerns—that will be useful in our consideration of the nominated areas for the issuance of limited alternative energy leases.

Notice Summarizing Outer Continental Shelf Civil Penalties Paid from January 1, 2007, through December 31, 2007 (58 KB PDF) Federal Register Cite: Vol. 73, No. 63, FR 17378 (04/01/2008) Summary: This notice provides a listing of civil penalties paid from January 1, 2007, through December 31, 2007, for violations of the Outer Continental Shelf Lands Act. The goal of the MMS Outer Continental Shelf Civil Penalties Program is to assure safe and clean operations on the Outer Continental Shelf. Through the pursuit, assessment, and collection of civil penalties and referrals for the consideration of criminal penalties, the program is designed to encourage compliance with applicable statutes and regulations. The purpose of publishing the penalties summary is to provide information to the public on violations of special concern in Outer Continental Shelf operations and to provide an additional incentive for safe and environmentally sound operations.

Outer Continental Shelf (OCS) Policy Committee; Notice and Agenda for Meeting (53 KB PDF)

Federal Register Cite: Vol. 73, No. 35, FR 9586 (02/21/2008)

Summary: The OCS Policy Committee will meet at the Washington Dulles Crowne Plaza Hotel in Herndon, Virginia.

Dates: Wednesday, March 5, 2008, 8:30 a.m. to 5:30 p.m. and Thursday, March 6, 2008, from 8:30 a.m. to 12:30 p.m.

Royalty-in-Kind (RIK) Eligible Refiner, Determination of Need (58 KB PDF) Federal Register Cite: Vol. 73, No. 11, FR 2938 (01/16/2008) Summary: The Minerals Management Service (MMS), an agency of the U.S. Department of the Interior, is requesting written comments from interested parties, particularly refiners who qualify under the RIK eligible refiner program, regarding their experiences in the crude oil marketplace. Specifically, we are interested in eligible refiners’ experiences in gaining access to adequate supplies of crude oil at equitable prices. This Determination of Need process will assist the Secretary of the Interior in deciding whether or not to continue with sales of Federal Government royalty crude oil under the RIK eligible refiner program.

Outer Continental Shelf (OCS) Chukchi Sea Alaska, Oil and Gas Lease Sale 193 (478 KB PDF)

Federal Register Cite: Vol. 73, No. 1, FR 209 (01/02/2008)

Summary: The MMS will hold OCS Oil and Gas Lease Sale 193 on February 6, 2008, in accordance with provisions of the OCS Lands Act (43 U.S.C. 1331– 1356, as amended), the implementing regulations (30 CFR 256), and the OCS Oil and Gas Leasing Program 2007– 2012.

Final Rules (2008)
 

	Allocation and Disbursement of Royalties, Rentals, and Bonuses—Oil and Gas, Offshore (97 KB PDF) Regulatory Identifier Number: 1010-AD46 Federal Register Cite: Vol. 73, No. 247, FR 78622 (12/23/2008) Summary: The MMS is amending the regulations on distribution and disbursement of royalties, rentals, and bonuses to include the allocation and disbursement of revenues from certain leases on the Gulf of Mexico Outer Continental Shelf in accordance with the provisions of the Gulf of Mexico Energy Security Act of 2006. The regulations set forth the formula and methodology for calculating and allocating revenues to the States of Alabama, Louisiana, Mississippi, and Texas, their eligible political subdivisions, and the Land and Water Conservation Fund from the 181 Area in the Eastern Planning Area and 181 South Area in the Gulf of Mexico. The Secretary of the Interior will begin to disburse these revenues beginning on or before March 31, 2009. Effective Date: January 22, 2009
	Royalty Relief—Ultra-Deep Gas Wells and Deep Gas Wells on Leases in the Gulf of Mexico; Extension of Royalty Relief Provisions to Leases Offshore of Alaska (225 KB PDF) Regulatory Identifier Number: 1010-AD33 Federal Register Cite: Vol. 73, No. 223, FR 69490 (11/18/08) Summary: This final rule amends existing deep gas royalty relief regulations to reflect statutory changes enacted in the Energy Policy Act of 2005. It provides additional royalty relief for certain ultra-deep wells on Outer Continental Shelf leases in shallow water in the Gulf of Mexico. It extends both the existing and the additional deep gas royalty relief to Outer Continental Shelf leases in deeper water than before. Finally, this final rule applies discretionary royalty relief procedures that have been used by deepwater leases in the Gulf of Mexico to leases offshore of Alaska. Effective Date: December 18, 2008
	Revisions to Subpart AGeneral; Subpart IPlatforms and Structures; and Subpart JPipelines and Pipeline Rights-of-Way (78 KB PDF) Regulatory Identifier Number: 1010-AD18 Federal Register Cite: Vol. 73, No. 211, FR 64541 (10/30/08) Summary: The MMS is amending its regulations to require lessees, lease operators, and pipeline right-of-way holders to submit a report if a facility or pipeline is damaged by a hurricane or other natural phenomena. The final rule also requires operators to provide assessment information on the structural integrity of Outer Continental Shelf platforms; information on the use of unbonded flexible pipe for pipelines; and additional information when installing pipeline risers on floating platforms. The rule also incorporates an industry-developed standard concerning the in-service inspection of mooring hardware for floating drilling units. These changes will allow MMS to better regulate the safety of the oil and gas infrastructure, and to promptly assess damage resulting from hurricanes or other natural phenomena.
	Royalty Relief for Deepwater Outer Continental Shelf Oil and Gas Leases—Conforming Regulations to Court Decision (244 KB PDF)

Regulatory Identifier Number: 1010-AD29
Federal Register Cite: Vol. 73, No. 195, FR 58467 (10/07/08)

Summary: This rule amends 30 CFR parts 203 and 260 to conform the regulations to the decision of the United States Court of Appeals for the Fifth Circuit in Santa Fe Snyder Corp., et al. v. Norton. That decision found that certain provisions of the MMS regulations interpreting section 304 of the Deep Water Royalty Relief Act are contrary to the requirements of the statute. The MMS will determine lessees’ royalty under leases subject to Deep Water Royalty Relief Act section 304, for both past and future periods, in a manner consistent with the Fifth Circuit’s decision in the Santa Fe Snyder case and this rule. Effective Date: This rule is effective November 6, 2008.

	Bonus or Royalty Credits for Relinquishing Certain Leases Offshore Florida (66 KB PDF) Regulatory Identifier Number: 1010-AD-44 Federal Register Cite: Vol. 73 No. 178, FR 52917 (9/12/08) Summary: This final rule amends regulations for oil and gas leases on the Outer Continental Shelf to implement a mandate in the Gulf of Mexico Energy Security Act of 2006. These amendments (1) provide a credit to lessees who relinquish certain eligible leases in the Gulf of Mexico; (2) define eligible leases as those within 125 miles of the Florida coast in the Eastern Planning Area, and certain leases within 100 miles of the Florida coast in the Central Planning Area; and (3) allow lessees to use the credits in lieu of monetary payment for either a lease bonus bid or royalty due on oil and gas production from most other leases in the Gulf of Mexico, or to transfer the credits to other Gulf of Mexico lessees for their use.
	Electronic Payment of Fees for Outer Continental Shelf Activities (86 KB PDF) Regulatory Identifier Number: 1010-AD43 Federal Register Cite: Vol. 73. No. 165, FR 49943 (08/25/08) Summary: This final rule requires that all lessees, operators, permittees, and right-of-way holders pay all fees for processing plans, applications, and permits electronically. This rule will aid industry in payment processing and reduce payment processing errors. This rule will improve MMS processing efficiency and facilitate the correction of industry payment errors. The MMS will not accept checks, money orders, or cashier’s checks for payment of fees after the effective date of this final rule. The final rule also adjusts certain cost recovery fees for inflation.
	Open and Nondiscriminatory Movement of Oil and Gas as Required by the Outer Continental Shelf Lands Act (114 KB PDF)

Regulatory Identifier Number: 1010-AD17
Federal Register Cite: Vol. 73, No. 118, FR 34630 (06/18/2008)

Summary: The Minerals Management Service (MMS) is promulgating new regulations that establish a process for a shipper transporting oil or gas production from Federal leases on the Outer Continental Shelf (OCS) to follow if it believes it has been denied open and nondiscriminatory access to pipelines on the OCS. The rule provides MMS with tools to ensure that pipeline companies provide open and nondiscriminatory access to their pipelines.

Outer Continental Shelf Regulations—Technical Corrections (56 KB PDF) Regulatory Identifier Number: 1010-AD49 Federal Register Cite: Vol. 73, No. 73, FR 20170 (04/15/2008) Summary: This document makes minor technical changes to regulations that were published in various Federal Register documents and are codified in the Code of Federal Regulations. These changes will correct various citations and typographical errors in 30 CFR parts 250, 270, 281, and 282.

Incorporate American Petroleum Institute Hurricane Bulletins (68 KB PDF)

Regulatory Identifier Number: 1010-AD48
Federal Register Cite: Vol. 73, No. 73, FR 20166 (04/15/2008)

Summary: The direct final rule will incorporate by reference three American Petroleum Institute hurricane bulletins into MMS’s regulations. The three bulletins supplement the American Petroleum Institute’s Recommended Practice 2A-WSD, Recommended Practice for Planning, Designing, and Constructing Fixed Offshore Platforms—Working Stress Design, which contains engineering design principles and good practices for new platforms and assessments of existing platforms. These bulletins are needed to increase survivability during hurricane events by imposing more stringent design and assessment criteria for both new and existing structures located within particular Gulf of Mexico areas. By increasing survivability during hurricane conditions, fewer platforms will be damaged, thereby, protecting critical oil and gas resources and making those resources available after hurricane events.