[Federal Register: February 19, 2004 (Volume 69, Number 33)]
[Rules and Regulations]
[Page 7681-7682]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19fe04-6]
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
33 CFR Part 106
[USCG-2003-14759]
Outer Continental Shelf Facility Security
AGENCY: Coast Guard, DHS.
ACTION: Notice of agency policy.
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SUMMARY: On Wednesday, October 22, 2003, the Coast Guard published a
series of final rules for maritime security requirements mandated by
the Maritime Transportation Security Act of 2002, including provisions
for mobile offshore drilling units (MODUs) not subject to the
International Convention for the Safety of Life at Sea, 1974, and
certain fixed and floating facilities on the Outer Continental Shelf
(OCS) other than deepwater ports. This Notice of agency policy
clarifies which fixed and floating OCS facilities are subject to
regulation under Title 33 CFR part 106. This Notice also clarifies how
the Coast Guard establishes applicability to Title 33 CFR part 106.
DATES: This policy is effective as of November 21, 2003.
FOR FURTHER INFORMATION CONTACT: For further information on the subject
of this Notice, contact Lieutenant Commander Eric Walters (G-MOC) U.S.
Coast Guard by telephone at (202) 267-0499 or by electronic mail at
ewalters@comdt.uscg.mil.
SUPPLEMENTARY INFORMATION: The requirements of 33 CFR part 106 apply to
owners and operators of any fixed or floating facility, including MODUs
not subject to 33 CFR part 104, operating on the Outer Continental
Shelf (OCS) of the United States for the purposes of
[[Page 7682]]
engaging in the exploration, development, or production of oil, natural
gas or mineral resources, that are regulated by 33 CFR Subchapter N,
and that meet certain operating conditions of crewing or production.
These regulations were developed under the authority the Maritime
Transportation Security Act, which among other things, requires the
development of security plans designed to deter, to the maximum extent
practicable, transportation security incidents (TSIs). TSIs are
security incidents resulting in a significant loss of life,
environmental damage, transportation system disruption, or economic
disruption in a particular area.
The Coast Guard recognized that fixed and floating facilities come
in a wide array of designs, and support a variety of activities,
functions and processes that are intrinsic to the exploration,
development or production of oil, natural gas, or mineral resources.
Without the benefit of security measures, these facilities may be
susceptible to a TSI. To ensure we included all relevant OCS
facilities, we made our maritime security regulations applicable to
those OCS facilities regulated under 33 CFR subchapter N (see 33 CFR
106.105. Applicability). Subchapter N applies to a wide variety of OCS
facilities, including facilities used to support drilling, extraction,
and transmission. The security requirements of Title 33 CFR Part 106
apply to those OCS facilities now regulated under subchapter N, as may
be further limited by the ``consequence thresholds'' discussed below.
The Coast Guard used the National Risk Assessment Tool (N-RAT) to
determine ``consequence thresholds'' for various vessel and facility
types to determine which vessels and facilities could be involved in a
TSI. However, with regard to the facilities regulated by Title 33 part
106, and as indicated in the Preamble to the temporary interim rules
published on July 1, 2003 (68 FR 39250), we worked with the Minerals
Management Service (MMS) to compare OCS facility production rates and
operations to develop appropriate ``consequence thresholds.'' This is
because the N-RAT was not able to provide sensitivity to the OCS
facility size or production level that was sufficient for assessing the
``significant loss of life'', ``economic disruption in a particular
area'', ``transportation system disruption'', or ``environmental
damage'', that is necessary for us to make a TSI determination.
In Title 33 CFR 106.105, the Coast Guard identified three operating
conditions to determine if the ``consequence threshold'' for a TSI was
present on a particular OCS facility: the facility hosts more than 150
persons for 12 hours or more in any 24 hour period continuously for 30
days or more; the facility produces greater than 100,000 barrels of oil
per day; or the facility produces greater than 200 million cubic feet
of natural gas per day.
These criteria have been developed solely to establish the
``consequence thresholds'' for a TSI. Because a ``consequence
threshold'' is applied as a metric, the particular activity, function
or process that causes the threshold to be reached is irrelevant.
Therefore, the Coast Guard uses the term ``production'' to include the
handling, transfer or transmission of oil or natural gas by an OCS
facility. In that regard, reference is made to the definition of
``production'' used in 33 CFR subchapter N (140.10). Simply put, the
Coast Guard finds that an OCS facility that supports a pipeline
transmission junction transporting 100,000 barrels of oil per day
presents the same TSI risks as an OCS facility that supports wells
extracting 100,000 barrels of oil day from a down hole formation.
Similarly, the Coast Guard finds that an OCS facility that supports
both extraction and transportation activity, where neither the
extraction nor the transportation components individually exceed the
``consequence threshold'', but the aggregate of both activities exceeds
the ``consequence threshold'', presents the same TSI risk.
Policy: Title 33 CFR part 106 applies to those OCS facilities
already regulated by 33 CFR subchapter N that meet the operating
conditions of section 106.105 (a), (b) or (c). The Coast Guard uses the
definition of the term ``production'' given in 33 CFR subchapter N
(140.10) to include those activities, functions and processes that
could render the OCS facility susceptible to a TSI. These activities,
functions and processes may include, but are not necessarily limited
to, the handling, transfer or transportation of oil or natural gas by
an OCS facility supporting pipeline transmission junctions. The Coast
Guard will continue to work with the Minerals Management Service (MMS)
as necessary to refine and update the ``threshold characteristics''
upon which the applicability of 33 CFR part 106 is based.
To this end, the MMS has provided the Coast Guard with a list of
OCS facilities that, according to MMS data, meet or exceed the
``threshold characteristics'' in 33 CFR part 106. The Coast Guard has
sent letters to owners or operators of these facilities informing them
that they must comply with the requirements of 33 CFR part 106. The
Coast Guard intends to work closely with the MMS to identify all OCS
facilities to which 33 CFR part 106 applies, and to inform the owners
and operators of these facilities that they have been so identified.
Owners and operators who believe their OCS facilities have been
misidentified, or otherwise do not meet the ``threshold
characteristics'' may appeal as prescribed in 33 CFR 101.420. While the
Coast Guard will make a good faith effort to identify and notify the
owners and operators of those OCS facilities subject to the
requirements of 33 CFR part 106, ultimate responsibility for complying
with 33 CFR part 106 rests with the cognizant OCS facility owner or
operator.
Dated: February 12, 2004.
T.H. Gilmour,
Assistant Commandant for Marine Safety, Security and Environmental
Protection.
[FR Doc. 04-3619 Filed 2-18-04; 8:45 am]
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