US Coast Guard issues interim security rules for offshore platforms, vessels

July 3, 2003
The US Coast Guard Tuesday issued sweeping interim maritime security rules for ports and waterways that will also impact offshore platform operators.

By OGJ editors

WASHINGTON, DC, July 3 -- The US Coast Guard Tuesday issued sweeping interim maritime security rules for ports and waterways that will also impact offshore platform operators. Under the new regulations, most outer continental shelf facilities must designate a security officer and monitor potential threats through mandatory security assessments filed with the government.

After a round of public hearings this summer, final rules are expected by Oct. 25, US officials said. The regulations impact an estimated 10,000 vessels, 5,000 facilities, and 40 Outer Continental Shelf facilities. Initial compliance costs for OCS facilities are expected to total $37 million, with compliance estimated at $5 million/year, USCG said. A public hearing on the OCS facility portion of the rule will be held in Washington, DC, July 23 with comments due by July 31.

A Federal Register notice said the interim rule provides security measures for mobile offshore drilling units (MODUs) not subject to the International Convention for the Safety of Life at Sea, 1974, (SOLAS) and certain fixed and floating OCS facilities other than deepwater ports.

"This rulemaking combines international requirements and existing domestic policy, and is published as a part of a new subchapter on maritime security," USCG said. It mandates that OCS facilities conduct security assessments and develop security plans.

The timetable is short. Within 6 months, companies must submit plans; within 12 months each OCS facility must be in compliance.

Offshore oil and gas platforms directly impacted by the new regulations include oil rigs that produce more than 100,000 b/d, gas platforms that produce more than 200 MMcfd, and any platform that is consistently manned by more than 150 people. These facilities must designate a security officer and submit detailed assessments or apply for a waiver. In some cases, existing company specific security programs may be substituted for the government's assessment blueprint if the two are similar.

Facilities that do not fall under those categories still may be subject to some government-mandated security protocol at the discretion of the local USCG commander, US officials said.

Industry reaction
Given that Congress mandated an unusually short regulatory timeframe to get the rules implemented, USCG's plan "is, on balance, a pretty good job," said Bill Hedrick, manager of health and safety at Houston-based Rowan Cos. Inc., and a member of the International Association of Drilling Contractors. He said that drilling companies and producers will be carefully reviewing the interim rule and plan to offer comments and suggestions.

Similarly, the National Petrochemical & Refiners Association said it will conduct its own security regulations compliance workshop to help members comply with the rule, which implements the Maritime Transportation Security Act of 2002.

NPRA said that the new rule requires each facility that is capable of transferring oil or hazardous materials, in bulk, to or from a vessel to develop "Facility Security Assessments" and "Facility Security Plans" to implement a range of security measures, and to submit those plans to USCG by Dec. 29.

"This marks the first body of security regulations promulgated by the Department of Homeland Security with a direct impact on the refining and petrochemical industries. NPRA is pleased that it has moved quickly to sponsor a workshop to help its members meet what is a very short compliance deadline. This is part of our efforts to promote a cooperative approach between government and industry to address facility security concerns," said NPRA President Bob Slaughter.

NPRA's workshop will be held in Houston July 23-24. It will provide a detailed look at USCG site security regulations and will also include instructions on complying with the US Department of Transportation's hazardous materials transportation regulations.