Changes proposed to OCS pipeline rules

Oct. 5, 2007
The US Minerals Management Service is proposing revisions to its Outer Continental Shelf pipeline and pipeline right-of-way regulations.

Nick Snow
Washington Correspondent

WASHINGTON, DC, Oct. 5 -- The US Minerals Management Service is proposing revisions to its Outer Continental Shelf pipeline and pipeline right-of-way (ROW) regulations. The new rules would bring the regulations, last revised in 1988, in line with current MMS policies and selected industry practices, it said.

Many industry standards covering pipelines have been revised since 1988, and MMS has issued several notices to lessees and operators containing guidance on applying for, installing, maintaining, and decommissioning pipelines, MMS said.

The proposals include two new safety initiatives. One is a requirement for companies to follow MMS pipeline operations and maintenance manuals as well as pipeline integrity management and personnel training manuals. Another would require a pipeline riser attached to a floating platform to use an independent, third-party review of its design, fabrication, and installation which would be similar to, but separate from, the platform verification program.

MMS said its proposed rule also would increase the ROW bonding amount to more accurately reflect actual pipeline decommissioning liabilities. The proposed revisions would let an ROW holder choose either a $300,000 individual bond or a $1 million area bond covering all pipeline ROW grants held by a company in an MMS OCS region.

The proposals also include an increase in annual rental fees for pipeline ROW grants, currently $15/mile. Guidelines for new rights of use and easement (RUE) and pipeline accessory structures and pipeline accessory structures based on acreage would equal about $125/mile. MMS said the proposed $70/mile rate attempts to strike a balance between the ROW and RUE amounts.

MMS is accepting comments on the proposals, which can be viewed online at www.mms.gov/federalregister, through Jan. 31, 2008.

Contact Nick Snow at [email protected].