US Coast Guard withdraws 1999 offshore oil and gas proposed rule

The US Coast Guard withdrew a 1999 proposed rule covering oil and gas activities on the US Outer Continental Shelf. The passage of time, advances in technology, and changes in industry practices have rendered the proposed rule covering workplace safety on vessels obsolete, it said in a Sept. 19 Federal Register notice.

The Coast Guard said it proposed the ruling on Dec. 7, 1999, in responses to offshore oil and gas industry changes since the last major revision of its OCS regulations in 1982. “In the nearly 20 years since the Coast Guard published the [notice of proposed rulemaking] and the comment period closed, the offshore industry has continued to grow and evolve,” it noted.

“Due to the passage of time, advances in technology, and changes in industry practice, we found that much of what we proposed in the [NOPR] is now obsolete and no longer applicable to the modern OCS work environment. Consequently, the [NOPR] is no longer suitable as a basis for further rulemaking action,” the USCG said in its Sept. 19 notice.

The proposed rule also came before substantial reforms within the US Department of the Interior following the April 2010 Macondo deepwater well blowout and fire that killed 11 people and subsequently spilled 4.9 million bbl of crude oil into the Gulf of Mexico. DOI broke up the US Minerals Management Service and move its workplace safety and environmental protection responsibilities to a new agency, the US Bureau of Safety and Environmental Enforcement, where substantial regulations were enacted.

The US oil and gas industry responded by forming two entities that worked to advance offshore oil containment technology and capabilities. It also formed the Center for Offshore Safety in Houston to enhance and continuously improve the industry’s offshore safety and environmental performance.

In Houston, the International Association of Drilling Contractors welcomed the USCG’s notice as long overdue. “After sitting on the shelf for nearly 20 years, the provisions contained in the proposed rule have long ago been rendered obsolete by an industry that prides itself on embracing technological advances,” IADC Pres. Jason McFarland said.

“At IADC, we have advocated for the Coast Guard to withdraw their proposal in order to facilitate an open dialogue regarding regulations that reflect the current state of the industry,” McFarland said.

Contact Nick Snow at [email protected].