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The NewsRoom
Release: #3705
Date: October 3, 2007
MMS Proposes
Modernization of Pipeline Regulations
Update Would Ensure
Use of Current Technology in Pipeline Operations
WASHINGTON –
The U.S. Department of the Interior’s Minerals Management Service
(MMS) is proposing to revise the regulations covering pipelines and
pipeline rights-of-way on the Outer Continental Shelf (OCS). The
proposed rule will bring the regulations up to date with current MMS
policies and selected industry practices.
The regulations
were last revised in 1988. Since then, many industry standards
covering pipelines have been written and revised, and MMS has issued
several Notices to Lessees and Operators (NTLs) containing guidance on
applying for, installing, maintaining, and decommissioning pipelines.
“The proposed
revision of the MMS pipeline regulations will ensure the use of the
best available and safest technologies related to pipeline operations
on the OCS,” said MMS Director Randall Luthi.
Two new safety
initiatives are included in the proposed rulemaking. MMS is proposing
a requirement that companies submit to the MMS pipeline operations and
maintenance manuals as well as pipeline integrity management and
personnel training manuals. The proposed rule would also require that
all pipeline risers attached to floating platforms be subject to a
verification program – an independent third party review of the
design, fabrication and installation of the pipeline risers -- similar
to, but separate from, the platform verification program.
The
proposed rule would require an increase in the Right of Way
(ROW) bonding amount to more accurately reflect the actual liabilities
in decommissioning pipelines. ROW bonds ensure companies have adequate
funds in reserve for the eventual decommissioning and removal of
pipelines. The proposed revisions would allow an ROW holder the option
of choosing to cover the pipeline ROW with either a $300,000
individual bond or a $1,000,000 area bond—one that would cover all
pipeline ROW grants held by a company in one MMS OCS Region.
MMS is also
proposing to increase annual rental fees for pipeline ROW grants,
currently $15 per mile, to more closely reflect the guidelines
established for new rights of use and easement (RUE) and pipeline
accessory structures, which are based on acreage and would equal
approximately $125 per mile. The proposed rule stipulates rates of $70
per mile, striking a balance between the ROW and RUE amounts.
MMS is accepting
comments on the proposed rule for the next 120 days. Comments must be
identified with RIN 1010-AD11 in the subject line, and will be
accepted via one of the following methods through January 31, 2008.
· Federal
eRulemaking Portal
· Email
· Fax:
703-787-1546
Mail or
hand-carry: Minerals Management Service
Attention: Regulations and Standards Branch (RSB)
381 Elden Street, MS-4024
Herndon, Virginia 20170-4817
Relevant Web Sites: Minerals Management Service
2007
Federal Register
Media Contacts:
Nicolette Nye,
703-787-1011
MMS: Securing Ocean Energy & Economic Value for America
U.S. Department of the Interior
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