[Federal Register Volume 78, Number 175 (Tuesday, September 10, 2013)]
[Proposed Rules]
[Pages 55230-55234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21938]
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
33 CFR Parts 140, 141, 142, 143, 144, 145, 146, and 147
[Docket No. USCG-2012-0779]
RIN 1625-AC05
Safety and Environmental Management System Requirements for
Vessels on the U.S. Outer Continental Shelf
AGENCY: Coast Guard, DHS.
ACTION: Advance notice of proposed rulemaking.
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SUMMARY: The Coast Guard intends to promulgate regulations that will
require vessels engaged in OCS activities (defined in 33 CFR Chapter I,
Subchapter N) to develop, implement, and maintain a vessel-specific
Safety and Environmental Management System (SEMS) that incorporates the
management program and principles of the American Petroleum Institute's
Recommended Practice for Development of a Safety and Environmental
Management Program for Offshore Operations and Facilities, Third
Edition, May 2004 (API RP 75). The Coast Guard intends for this SEMS to
be developed and implemented by the vessel's owner or operator and
compatible with a designated lease operator's SEMS required under
Bureau of Safety and Environmental Enforcement (BSEE) regulations. The
Coast Guard seeks comments on whether a SEMS that incorporates the
management program and principles of API RP 75 is appropriate for
vessels engaged in OCS activities, would reduce risk and casualties,
and improve safety on the OCS. Comments should address the feasibility
of implementing a SEMS that incorporates API RP 75, the compatibility
with BSEE SEMS regulations, potential methods of oversight, safety
issues, costs and regulatory burdens, and other issues of concern to
the regulated community and general public. The Coast Guard would use
such comments to assist in developing these new regulations.
DATES: Comments and related material must either be submitted to our
online docket via http://www.regulations.gov on or before December 9,
2013 or reach the Docket Management Facility by that date.
ADDRESSES: You may submit comments identified by docket number USCG-
2012-0779 using any one of the following methods:
(1) Federal eRulemaking Portal: http://www.regulations.gov.
(2) Fax: 202-493-2251.
(3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001.
(4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is 202-366-9329.
To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.
FOR FURTHER INFORMATION CONTACT: If you have questions on this advance
notice of proposed rulemaking, call or email LCDR Marc J. Montemerlo,
U.S. Coast Guard; telephone 202-372-1387, email
[email protected]. If you have questions on viewing or
submitting material to the docket, call Barbara Hairston, Program
Manager, Docket Operations, telephone 202-366-9826.
SUPPLEMENTARY INFORMATION:
Table of Contents for Preamble
I. Public Participation and Request for Comments
A. Submitting Comments
B. Viewing Comments and Documents
[[Page 55231]]
C. Privacy Act
D. Public Meeting
II. Abbreviations
III. Background
A. General
B. Relationship to BSEE Regulations
IV. Advance Notice of Proposed Rulemaking Discussion
V. Information Requested
I. Public Participation and Request for Comments
We encourage you to respond to this advance notice of proposed
rulemaking by submitting comments and related materials. All comments
received will be posted, without change, to http://www.regulations.gov
and will include any personal information you have provided.
A. Submitting Comments
If you submit a comment, please include the docket number for this
rulemaking (USCG-2012-0779), indicate the specific question number
under Section V. of this document to which each comment applies, and
provide a reason for each suggestion or recommendation. You may submit
your comments and material online or by fax, mail, or hand delivery,
but please use only one of these means. We recommend that you include
your name and a mailing address, an email address, or a phone number in
the body of your document so that we can contact you if we have
questions regarding your submission.
To submit your comment online, go to http://www.regulations.gov,
insert ``USCG-2012-0779'' in the ``Search'' box, and click ``Search.''
Filter the search results by placing a check in the box next to
``notice'' under the ``Document Type'' filter on the left side of the
page. A link to this notice will appear in the results list. Click the
``Comment Now'' box next to the entry for this notice to submit your
comment online. If you submit your comments by mail or hand delivery,
submit them in an unbound format, no larger than 8\1/2\ by 11 inches,
suitable for copying and electronic filing. If you submit them by mail
and would like to know that they reached the Facility, please enclose a
stamped, self-addressed postcard or envelope. We will consider all
comments and material received during the comment period.
B. Viewing Comments and Documents
To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
insert ``USCG-2012-0779'' in the ``Search'' box, and click ``Search.''
You can filter the results by document type using the filter options on
the left side of the page. If you do not have access to the Internet,
you may view the docket online by visiting the Docket Management
Facility in Room W12-140 on the ground floor of the Department of
Transportation West Building, 1200 New Jersey Avenue SE., Washington,
DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays. We have an agreement with the Department of
Transportation to use the Docket Management Facility.
C. Privacy Act
Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).
D. Public Meeting
We do not now plan to hold a public meeting, but you may submit a
request for one to the docket using one of the methods specified under
ADDRESSES. In your request, explain why you believe a public meeting
would be beneficial. If we determine that one would aid this
rulemaking, we will hold one at a time and place announced by a later
notice in the Federal Register.
II. Abbreviations
API RP 75 American Petroleum Institute's Recommended Practice for
Development of a Safety and Environmental Management Program for
Offshore Operations and Facilities, Third Edition, May 2004
BOEM Bureau of Ocean Energy Management
BSEE Bureau of Safety and Environmental Enforcement
CFR Code of Federal Regulations
DHS Department of Homeland Security
FOI Floating Offshore Installation
FPSO Floating Production and Storage Offload Units
FR Federal Register
ISM Code International Safety Management Code
MODU Mobile Offshore Drilling Unit
OCS Outer Continental Shelf
OCSLA Outer Continental Shelf Lands Act
OSV Offshore Supply Vessel
SEMS Safety and Environmental Management System
SMS Safety Management System
SOLAS International Convention for the Safety of Life at Sea 1974,
as amended
USCG United States Coast Guard
III. Background
A. General
Under the Outer Continental Shelf Lands Act (43 U.S.C. 1331-1356a)
(OCSLA), the Coast Guard is responsible for developing and implementing
regulations to protect the safety of life, property, and the
environment on Outer Continental Shelf (OCS) installations, vessels,
and units engaged in OCS activities,\1\ including the regulation of
workplace safety and health.\2\ The Coast Guard's regulatory authority
extends to matters relating to safety of life and property on OCS units
attached to the seabed for the purpose of engaging in OCS activities,
as well as units on the waters adjacent thereto (i.e., units, whether
attached or unattached), that are engaged in OCS activities in support
of attached units.\3\
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\1\ An OCS activity is any offshore activity associated with the
exploration for, or development or production of, the minerals of
the Outer Continental Shelf (33 CFR 140.10).
\2\ 43 U.S.C. 1347(c).
\3\ 43 U.S.C. 1333(d)(1).
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The exploration, development, and production of oil and gas on the
OCS require the careful coordination of multiple phases of complex
activities. These activities are typically accomplished by a network of
technical experts and specialists working for different companies,
using a variety of technologies and procedures on vessels and
facilities that are often operating simultaneously in close proximity
to one another. For example, a floating offshore installation (FOI)
producing oil and gas, a mobile offshore drilling unit (MODU) drilling
a well, and other service vessels providing well stimulation and
logistical support might work in close proximity to one another, and
can create significant risk to personnel, the environment, property,
and infrastructure. As illustrated by the Deepwater Horizon incident on
April 20, 2010, the consequences of accidents and mishaps, though
infrequent, can be severe. The Coast Guard believes that vessels
engaged in OCS activities (whether attached to the seabed or in the
waters adjacent thereto) should be required to develop, implement and
maintain a vessel-specific SEMS program that proactively manages the
risks inherent in OCS activities. This approach should be overseen by
the Coast Guard and be compatible with the designated lease operator's
SEMS program that BSEE requires.
In 1991, the Coast Guard, along with the Minerals Management
Service (MMS, now BSEE) promoted the concept of a management system
called a Safety Environmental Management Program. This concept was
further developed by API, which, with assistance from the Coast Guard
and MMS, published API RP 75 in 1993. API RP 75 provides an example of
a
[[Page 55232]]
systematic and proactive management approach that will assist vessel
owners and operators to safely plan, design, manage, and conduct
offshore oil, gas and sulphur operations. However, only a limited
subset of vessels that engage in OCS activities in support of offshore
oil, gas and sulphur operations are required to implement a SEMS based
on this standard, as illustrated in Table 1 of Part B of this section.
Some of these vessels implement a SMS based on the ISM Code, but this
Code assumes a vessel's mission is international transportation of
cargo, not OCS activities. API RP 75 is a more appropriate standard and
the Coast Guard intends to promulgate regulations that would expand the
number of vessels required to have a vessel-specific SEMS based on API
RP 75.
Implementing a vessel-specific SEMS that incorporates the
management program and principles of API RP 75 would start with an
assessment of operating and design requirements as well as a hazards
analysis. Under regulations contemplated by this ANPRM, the SEMS would
establish vessel-specific safe operating procedures, work practices,
management-of-change procedures, and associated training. The SEMS
would also incorporate procedures to ensure that the design,
fabrication, installation, testing, inspection, monitoring, and
maintenance of equipment comply with all applicable safety regulations
(e.g., 33 CFR Subchapter N). Additionally, the SEMS would be subject to
periodic safety audits, and would include procedures for emergency
response and vessel owner/operator internal incident investigations to
help mitigate risk and prevent future mistakes.
The Coast Guard estimates that approximately 2,200 foreign and
domestic vessels engaged in OCS activities could be affected by this
regulatory action, including: 1,800 Offshore Supply Vessels (OSVs), 150
liftboats, 125 MODUs, and 125 other vessels. The Coast Guard requests
comments from the public regarding the accuracy of these population
estimates.
B. Relationship to BSEE Regulations
BSEE works to promote safety, protect the environment, and conserve
resources offshore through vigorous regulatory oversight and
enforcement. Existing BSEE regulations in 30 CFR part 250, subpart S
(30 CFR 250.1900 et seq.) require designated lease operators to
develop, implement, and maintain a SEMS program based on API RP 75.
These regulations also require designated lease operators to ensure
that contractors have their own written safe work practices. While the
designated lease operator's SEMS program required by BSEE includes
elements of API RP 75, this program is focused on overall lease
activities and the offshore oil, gas and sulphur operations of
facilities on the lease. When a facility is also a vessel, the
designated lease operator's SEMS is not focused on the unique nature of
the facility/vessel and its marine support mission.
The majority of vessels engaged in OCS activities, including but
not limited to, MODUs, well stimulation vessels, accommodation vessels,
OSVs, and floating production and storage offload units (FPSOs) are
contracted by designated lease operators. These vessels conduct a
variety of tasks, such as seismic activities, exploration and
completion drilling, production, well servicing, well stimulation,
installation and construction, dive support, and supply and logistical
services for one or multiple designated lease operators. Although
BSEE's SEMS regulations hold the designated lease operators accountable
for the overall safety of operations conducted on the OCS lease, the
Coast Guard believes that vessel owners and operators should be
responsible for developing a vessel-specific SEMS because the owners
and operators manage vessel-based personnel, operations, maintenance,
equipment, emergency responses, and alterations. This regulatory action
would place such requirements on vessel owners and operators and seek
to align Coast Guard regulations with current BSEE SEMS, both of which
would incorporate the management program and principles of API RP 75.
Table 1 shows the current state of safety management system
regulations on the OCS as it pertains to vessels:
Table 1
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BSEE
USCG OSHA..............
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Falls within the Does not fall Meets the Does not meet the
scope of 30 CFR within the scope applicability of applicability of
250.1900-.1901 of 30 CFR 33 CFR 96.110, 33 CFR 96.110,
and meets the 250.1900-.1901 96.210 (i.e. self- 96.210.
definition of and does not meet propelled over
``facility'' in the definition of 500 gross tons,
30 CFR 250.105. ``facility'' in engages on
30 CFR 250.105. international
voyages).
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Mobile
Offshore
Drilling
Unit
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Well Designated lease No SEMS directlly Vessel owner/ No SMS required No SEMS or SMS
Stimulation operator must required but may operator must
Vessel have a SEMS based or may not be have vessel-
on API RP 75. subject to a Specific SMS
designated lease based on ISM Code.
operator's SEMS.
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Floating
Production
Storage
Offloading
Unit
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Shuttle
Tanker
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Offshore No SEMS directly required but may or
Supply may not be subject to a designated
Vessel lease operator's SEMS
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Accommodatio
n
Vessel
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[[Page 55233]]
IV. Advance Notice of Proposed Rulemaking Discussion
The Coast Guard intends to promulgate regulations that will require
all domestic and foreign-flagged vessels engaged in OCS activities to
develop, implement, and maintain a SEMS that incorporates the
management program and principles of API RP 75. As discussed in Section
III, the Coast Guard would require a vessel-specific SEMS because
vessel owners and operators manage vessel-specific risks. This
requirement would apply to MODUs, well stimulation vessels, FPSOs,
shuttle tankers, OSVs accommodation vessels, and other vessels engaged
in OCS activities. One goal of a Coast Guard-required SEMS is to
complement existing prescriptive vessel design, equipment, and
operation safety standards and regulations. A Coast Guard-required SEMS
would also help to prevent accidents, injuries, and environmental
damage by reducing the probability and severity of uncontrolled
releases and other undesirable events. By incorporating the management
program and principles of API RP 75 as the basis for the Coast Guard's
SEMS requirements for vessels, this regulatory action would leverage
industry safety expertise and harmonize with BSEE's regulations for
designated lease operators.
The Coast Guard recognizes that there are vessels currently
operating on the OCS that comply with the Safety Management System
(SMS) standards of the International Safety Management (ISM) Code
(International Maritime Organization Resolution A.741(18)), and we
believe that any new SEMS requirements for vessels based on API RP 75
should take this into account. In 1997, the Coast Guard promulgated SMS
regulations (33 CFR part 96) for responsible persons and their vessels
engaged on international and domestic voyages. The purpose of these
regulations was to establish a national SMS standard that was
consistent with Chapter IX of the International Convention for the
Safety of Life at Sea (SOLAS) 1974, as amended, which requires that all
vessels subject to SOLAS have an effective SMS to meet the performance
elements of the ISM Code. The Coast Guard regulations followed the ISM
Code by setting broad performance standards designed to be flexible and
applicable to a wide variety of activities and vessel-types, including
large cruise ships, container ships, and MODUs. Certain vessels that
engage in OCS activities, including self-propelled MODUs, drillships,
heavy lift vessels, and OSVs that engage in international voyages are
currently required to comply with the ISM Code. The Coast Guard
estimates that there are approximately 185 total vessels subject to the
ISM Code currently engaged in OCS activities.
The Coast Guard believes that many elements of API RP 75 and the
ISM Code are similar. In crafting regulatory requirements, the Coast
Guard would consider whether ISM Code compliance should be an
alternative means of satisfying elements of API RP 75. The Coast Guard
is also aware that some vessels may be voluntarily implementing a
safety management system based on frameworks other than API RP 75 or
the ISM Code. These may include the International Association of
Drilling Contractors Health Safety and Environmental Case (IADC HSE
Case) or the International Standards Organization 9001 (ISO 9001:2008).
The Coast Guard is currently researching whether compliance with these
management programs would be appropriate alternatives to API RP 75.
V. Information Requested
1. Should the Coast Guard require a SEMS based on API RP 75 for
vessels engaged in OCS activities?
2. Should the Coast Guard require that each SEMS be subject to a
certification process? If so, who should certify the SEMS programs, and
what should the certification process entail?
3. How can the Coast Guard ensure that its SEMS requirements are
consistent with BSEE's SEMS requirements?
4. Should Coast Guard-required SEMS programs be subject to
independent third-party audits? If so, how frequently should audits
take place (e.g., ISM audits annually)? To what types of
qualifications, certifications, and authorizing processes should
independent third-party auditors be subject?
5. What are the differences and similarities between API RP 75 and
the ISM Code? What would be required to bring ISM-compliant vessels
into compliance with API RP 75? Please provide cost estimates if
available.
6. Should the Coast Guard consider IADC HSE Case, ISO 9001:2008, or
any other performance-based safety management alternatives or
equivalencies to the proposed SEMS requirements outlined in this ANPRM?
If so, what alternatives or equivalencies should the Coast Guard
consider? Please provide specific details, if possible.
7. For vessel owners and operators, how many of your vessels have
an active Safety Management Certificate issued under the ISM Code or
employ another type of safety management system? Do any components of
API RP 75 conflict with the ISM Code or vice versa? If employing a non-
ISM Code SMS, please provide information on the management system.
8. For vessel owners and operators, is there a safety officer or
similar position(s) dedicated to the management of safety onboard your
vessels?
9. For vessel owners and operators, if you have an active Safety
Management Certificate issued under the ISM Code or employ another type
of safety management system, what costs have you incurred in
implementing the safety management system? Please provide the cost for
your company and per vessel if possible, including the following:
a. Costs for an assessment of operating and design requirements.
b. Costs for a hazards analysis.
c. Costs to establish safe operating procedures, work practices,
and management-of-change procedures.
d. Costs for training on the SMS.
e. Costs for procedures to ensure that the design, fabrication,
installation, testing, inspection, monitoring, and maintenance of
equipment meet safety standards.
f. Costs for periodic safety audits, including procedures for
emergency response and incident investigation.
10. For vessel owners and operators, if you have an active Safety
Management Certificate issued under the ISM Code or employ another type
of safety management system, have you seen improvements in safety and
operation from implementing the SMS? If so, please specify and provide
any supporting data if available.
11. For vessel owners and operators, if you have an active Safety
Management Certificate issued under the ISM Code or employ another type
of safety management system do you have any information or data,
qualitative or quantitative, for any cost savings from operating with a
safety management system? For vessel owners and operators that
voluntarily implement an API RP 75-compliant SEMS, are there any cost
savings of complying with API RP 75? Please provide cost savings
information based on type and size of your operations, if possible.
12. For vessel owners and operators, if you do not have an active
safety management system, what costs would you expect to incur per
vessel for implementing a Coast Guard-required SEMS based on API RP 75?
13. For vessel owners or operators, what are the reasons not to use
a SEMS? What type of operations may not benefit from a SEMS? Are there
any operations (such as small or limited operations)
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that may not necessitate a SEMS and why? Besides costs, what is the
downside of using a SEMS?
14. Are there any data, literature, or studies that show that
implementation of a SEMS leads to a reduction in oil spills, property
damage, injury or deaths, or other casualties?
15. The Occupational Safety and Health Administration (OSHA) held a
public meeting on September 20-21, 2012, on the use of performance-
based regulatory models in the U.S. oil and gas industry, offshore and
onshore (see 77 FR 50172). If you submitted comments during that public
meeting or to the docket [OSHA-2012-0033] and want them considered in
this rulemaking, please resubmit those comments to this docket [USCG-
2012-0779].
16. Please provide any additional information or comments on the
proposals in this ANPRM.
Dated: August 16, 2013.
Robert J. Papp, Jr.,
Admiral, U.S. Coast Guard Commandant.
[FR Doc. 2013-21938 Filed 9-9-13; 8:45 am]
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