[Federal Register: November 8, 2007 (Volume 72, Number 216)]
[Proposed Rules]
[Page 63155-63156]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08no07-23]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
Notice of Public Workshop To Discuss the Possible Need for
Suspension of Operations Specifically Related to High Pressure or High
Temperature Equipment
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of Public Workshop.
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SUMMARY: The MMS will hold a workshop to discuss the possible need to
develop a new regulation allowing for a Suspension of Operations,
specifically related to high pressure or high temperature equipment
needed for safe drilling, completion, or production operations. This
Suspension of Operations would allow for an extension of a lease when
the modification of existing technology is considered necessary in
order to operate in frontier areas due to unexpected high temperatures
or high pressures encountered on your lease. This type of Suspension of
Operations would not apply to the initial design, development, or
manufacturing of new technology.
Workshop Date: January 23, 2008, beginning at 9 a.m.
Workshop Location:The workshop will be held at the Gulf of Mexico
Regional Office, Minerals Management Service, Room 111, 1201 Elmwood
Park Boulevard, New Orleans, Louisiana 70123-2394. All interested
parties are invited to attend.
FOR FURTHER INFORMATION CONTACT: Carole Danos, MMS, Gulf of Mexico
Outer Continental Shelf Region, Office of Production and Development,
1201 Elmwood Park Blvd., MS 5300, New Orleans, Louisiana 70123-2394, e-
mail: carole.danos@mms.gov, telephone (504) 736-2675.
SUPPLEMENTARY INFORMATION: The MMS received requests from industry to
consider a procedure to grant lease extensions in order to develop new
technology which may lead to the production of hydrocarbons. The MMS
will hold a workshop to gain additional insight from industry to help
determine whether such suspensions would be warranted. Also to be
discussed are the accompanying data and information that would be
submitted to validate a request for a lease extension.
Background: Regulations governing the granting of Suspensions of
Production (SOP) and Suspensions of Operations (SOO) are found at 30
CFR 250.168-177. Our current regulations allow MMS to issue SOOs for
the following reasons:
When necessary to comply with judicial decrees (see Sec.
250.172(a)).
When activities pose a threat or harm to life,
environment, or mineral deposits (see Sec. 250.172(b)).
For installation of safety or environmental equipment (see
Sec. 250.172(c)).
When necessary to carry out NEPA requirements (see Sec.
250.172(d)).
When inordinate delays are encountered in obtaining
required permits or consents (see Sec. 250.172(e)).
You fail to comply with a law, regulation, order, or lease
provision (see Sec. 250.173(a)).
[[Page 63156]]
The suspension is in the interest of National security or
defense (see Sec. 250.173(b)).
When you are prevented from drilling or other operations
for reasons beyond your control (see Sec. 250.175(a)).
When additional time is needed for potentially drilling
under salt sheets (see Sec. 250.175(b)).
When additional time is needed to potentially drill ultra-
deep wells (see Sec. 250.175(c)).
Suspensions have been limited because lease maintenance is a very
critical issue to the operator and also to MMS. Leases expire at the
end of their primary term unless operations (drilling, well re-working,
or production in paying quantities) are being conducted. Under current
regulations, only these operations or a suspension will extend the term
of a lease. Unless the suspension program is properly designed, it
could delay the overall development of Outer Continental Shelf (OCS)
hydrocarbon resources. The existence of many deepwater units further
complicates the issue because units are comprised of multiple leases.
Lastly, this proposed type of suspension may be regarded as harmful by
associated businesses as it may postpone drilling and associated
operations.
Discussion
The MMS has modified regulations governing suspensions in the past
to reflect technological challenges, i.e., complexities of geophysical
imaging under salt sheets and at extreme depths. However, the
regulations do not allow for the granting of a SOP or SOO based on time
needed to develop technology. The MMS will consider proposing a rule
that would allow a SOO to provide additional time for the technological
improvement of existing surface and wellbore equipment to promote
safety and protect the environment when High Pressure (HP) or High
Temperature (HT) beyond the capability of existing equipment has been
encountered on the lease.
Technology Suspension
The MMS has been approached by companies that have drilled wells,
made discoveries, but have encountered HT/HP conditions that create
technological challenges for drilling additional wells or forming a
development plan. The concept would be to allow a suspension to address
these challenges.
Questions industry presenters should address:
1. Is this concept warranted? Why?
2. How would MMS define ``technological challenge'' that would make
one eligible for such a suspension?
3. What other eligibility criteria should be considered?
4. What would tangible/observable milestones be for technology
development related to a lease?
5. How long should such a suspension last, and should it be
renewable?
Presentations and Written Comments
The MMS has not decided whether technology suspensions are
warranted. This workshop is being held to provide industry with an
opportunity to provide the necessary facts (pros and cons) that MMS
should consider in making a determination on whether or not to propose
such a rule. Therefore, we expect industry to play a major role in this
workshop. Requests by parties interested in making a formal
presentation at the workshop should be accompanied by a summary of the
material to be covered by the presentation and an estimate of the
amount of time required. If time constraints dictate, a time limit may
be placed on individual presentations. Please address requests to make
a presentation to Carole Danos. Requests must be received by close of
business on December 7, 2007. Approved presenters will be notified
prior to the workshop. A final agenda will be posted by December 21,
2007, on the MMS Web site at http://www.gomr.mms.gov/homepg/new/calendr.html.
The MMS encourages written comments responding to this
notice or the workshop discussions.
DATES: You may submit written comments by February 22, 2008. The MMS
may not fully consider comments received after this date.
ADDRESSES: You may submit comments on this concept by any of the
following methods. Please use ``Technology Suspension'' as the heading
for your comments.
Federal eRulemaking Portal: http://www.regulations.gov,
select ``Minerals Management Service'' from the agency drop-down menu,
then click ``submit.'' In the Docket ID column, select MMS-2007-OMM-
0062 to submit public comments and to view supporting and related
materials available for this rulemaking. Information on using
Regulations.gov, including instructions for accessing documents,
submitting comments, and viewing the docket after the close of the
comment period, is available through the site's ``User Tips'' link. All
comments submitted will be posted to the docket.
Mail or hand-carry comments to the Department of the
Interior; Minerals Management Service; Attention: Regulations and
Standards Branch (RSB); 381 Elden Street, MS-4024, Herndon, Virginia
20170-4817. Please reference ``Technology Suspension'' in your comments
and include your name and return address.
Registration: There is no registration fee for this workshop.
However, to assess the number of participants, MMS requests
participants to register with Carole Danos at (504) 736-2675 or
carole.danos@mms.gov prior to the meeting. The deadline to register is
January 11, 2008. Seating is limited and the number of attendees from
each organization may have to be restricted.
Dated: November 2, 2007.
Chris C. Oynes,
Associate Director for Offshore Minerals Management.
[FR Doc. E7-21895 Filed 11-7-07; 8:45 am]
BILLING CODE 4310-MR-P