Early indications are that the US Bureau of Safety and Environmental Enforcement avoided a well-intentioned mistake that could have created serious problems in its final interim offshore safety rule. “While our members are still reviewing the final rule, one of the key concerns of industry had been the ‘should’ to ‘must’ issue, which appears to have been addressed,” National Ocean Industries Association Pres. Randall B. Luthi said after BSEE released its new rule on Aug. 16.
Luthi referred to incorporation by reference, the process by which government agencies adopt an industry’s standard or practice as a regulation by turning a recommendation into a requirement. It’s an effective approach for two main reasons: It draws on industry expertise, and it saves a federal, state, or local government agency time and money that would be spent duplicating work that has already been done.
Where it nearly ran into trouble at BSEE was when the agency’s proposed offshore safety rule apparently took a blanket approach to incorporation by reference.
“The proposal which came out in October said that if the word ‘should’ appears, it changes to ‘must,’” said Erik Milito, the American Petroleum Institute’s upstream and industry operations director, just a day before BSEE released its final rule. “That occurrence in about 80,000 cases could create problems, including some which pose greater risk.
“There are a lot of [standards and practices] documents involving measurements and other aspects not related to safety,” Milito continued in an Aug. 15 teleconference with reporters. “Two key documents, cementing and blowout prevention standards, are what matter. We hope there’s a greater focus there.”
Heavy equipment lifts
One potential problem involved cleaning, inspecting, and maintaining equipment that is being moved from one well to another, Milito said. If the recommendation to clean and pressure-test such equipment during maintenance becomes a requirement, it would require multiple lifts of heavy equipment, he explained.
“This is one of the most hazardous aspects of offshore operations. A requirement like this would involve employees in a dangerous operation unnecessarily,” he said. “Doing this repeatedly also could pose problems for the well’s integrity.”
Federal representatives participate as API develops standards and practices, Milito added. “If it sees issues, it’s there to let us know,” he said. “There’s a lot of talk about government being behind industry, but it has been right there with us in this case.”
API members reported that BSEE inspectors were exercising enforcement discretion in a manner the trade association hoped the final regulation would, Milito said. The final rule seemed to do just that, although API officials were still studying it, an API spokesman told OGJ on Aug. 16.