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GCREAG Regulatory Update January, 2014 Lincoln Stroh J. Connor Consulting, Inc.

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Presentation on theme: "GCREAG Regulatory Update January, 2014 Lincoln Stroh J. Connor Consulting, Inc."— Presentation transcript:

1 GCREAG Regulatory Update January, 2014 Lincoln Stroh J. Connor Consulting, Inc.

2 Key Topics BSEE Regulatory Agenda USCG Regulatory Agenda DOT Regulatory Agenda Form / Information Collection Updates Proposed, Final Regulations & New NTL Deepwater Exploration Plan Approval Times

3 BSEE Regulatory Agenda BOPs – NPRM March 2014 – Final Rule October 2014 Production Safety Systems and Lifecycle Analysis – NPRM August 22, 2013 – Comment Period Ended October 21, 2013 – Final Action May 2014

4 USCG Regulatory Agenda Proposed regulations to add new requirements for lifesaving, fire protection, training, hazardous materials used as stores, and accommodation spaces Add standards for electrical and machinery installations in hazardous locations Provide regulations for DP systems Provide for USCG acceptance and approval of specified classification society plan reviews, inspections, audits, and surveys NPRM September 2014

5 USCG Regulatory Agenda Nontank Vessel Response Plans requires owners or operators of nontank vessels to prepare and submit oil spill response plans. Definition of nontank vessel: – Self-propelled vessels of 400 gross tons or greater that operate on the navigable waters of the US – Carry oil of any kind for main propulsion that are not tank vessels Updates SOPEP requirements that apply to nontank vessels and tank vessels Final Rule September 30, 2013 with effective date of October 30, 2013

6 DOT Regulatory Agenda PHMSA: Pipeline Safety regs at proposed rule stage: – Safety of On-Shore Liquid Hazardous Pipelines Addresses hazardous liquid operators improving protection of High Consequence Areas (HCA) and other vulnerable areas NPRM April 2014 – Issues with using Plastic Pipe in Gas Pipeline Industry Includes several issues regarding plastic pipe gas lines. NPRM April 2014 – Operator Qualification, Cost Recovery and other Pipeline Safety Proposed Changes Affects renewal process for special permits, cost recovery for design reviews, and incident reporting. NPRM November 2013

7 DOT Regulatory Agenda MARAD: Regulations To Be Followed by All Departments, Agencies and Shippers Having Responsibility To Provide a Preference for U.S.-Flag Vessels in the Shipment of Cargoes on Ocean Vessels – Would update and clarify the Cargo Preference rules that have not been revised substantially since 1971. – Next action is currently “undetermined”

8 Forms Update - APD / APM Application for Permit to Drill and Application for Permit to Modify updates will include a certification statement to state that false submissions are subject to criminal penalties Minor APD modifications Comments on each are due by Feb. 3, 2014

9 New Form BSEE-0011 iSEE Internet-Based Safety and Environmental Enforcement Reporting System – Created to clarify the needed information when someone reports an apparent violation Any person may report to BSEE any hazardous or unsafe working condition on any facility engaged in OCS activities, and any possible violation or failure to comply with: – Any provision of the Act – Any provision of a lease, approved plan, or permit issued under the Act, – Any provision of any regulation or order issued under the Act, or – Any other Federal law relating to safety of offshore oil and gas operations Comments due January 17, 2014

10 OSHA Injury Reporting Proposed Rule To require DIRECT electronic submission of workplace injury / illness data to OSHA “or its designee” (i.e. BSEE / form BSEE-0131) – Expands OSHA’s current direct collection abilities – Data is already tracked by employers (this won’t change), but is only accessed during inspections – 3 new requirements: > 250 employees = quarterly e-submission of info > 20 employees AND in certain industries = annual e- submission via form 300A to replace annual survey E-submit injury / illness data as requested by OSHA

11 Extension of Prior Notices to Lessees Two NTLs previously extended until the end of calendar year 2013 (NTL No. 2013-G02) are being extended again until June, 30, 2014. – NTL 2008-G04 provides guidance on the information requirements for OCS plans required by 30 CFR 550, subpart B, and – NTL 2008-G05 describes the shallow hazards program, which was designed to ensure that exploration, development, production, and transportation operations are conducted with a minimum risk to human life and the environment.

12 Upcoming Regulations Mike Saucier (BSEE) listed upcoming regulations at the December OOC Meeting: – Blowout Prevention Systems (in preparation, due out early 2014) – Arctic regulations (joint with BOEM) Upcoming proposed rules: – Suspensions of Production and Operations – Natural Gas Fluids Measurement – Oil Spill Mechanical Recovery

13 Deepwater Initial EP Approval Times Time Period EP Avg. Approval Time (Days) Pre DWH52 2010 (Post DWH)234 2011144 2012121 2013118

14 Down the Road January 28/29 – Hilton N.O. BSEE Standards Workshop January 29 – USCG Sector New Orleans Area Committee meeting March 19 – Central GOM Lease Sale 231 – N.O. March 19 – Eastern GOM Lease Sale 225 – N.O. (following CGOM sale) April 9/10 – Center for Offshore Safety 2 nd Annual Forum June 4 - Must be in compliance with SEMS II

15 Lincoln Stroh J. Connor Consulting, Inc. 281.578.3388 Thank you!

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