PPI Regulatory and News Updates

US BSEE Quintuples Inspection Fees for 2012

Created on Monday, 20 February 2012 13:57

For 2012, the US Bureau of Safety and Environmental Enforcement will receive increased nonrefundable inspection fees for facilities on the US Outer Continental Shelf (OCS) and for drilling rigs working on the US OCS. The 2012 fees are approximately five times those previously assessed.

The government anticipates collecting $62 million in inspection fees for 2012. Facility operators will be billed within 60 days, and payment is due within 30 days of billing. For drilling rigs, operators will be billed within 30 days of the end of the month of the inspection. The fee schedule is as follows:

$10,500/year for facilities with no wells but with processing equipment or gathering lines
$17,000/year for facilities with 1 to 10 wells, with any combination of active or inactive wells
$31,500/year for facilities with more than 10 wells, with any combination of active or inactive wells
$30,500 per inspection for drilling rigs operating in more than 500 ft of water
$16,700 per inspection for rigs operating in less than 500 ft of water

At least 50% of inspection fees will be used to fund personnel- and mission-related costs to expedite OCS development, including the review of applications for permits to drill.

For complete details, refer to the Notice to Lessees here: http://www.bsee.gov/Regulations-and-Guidance/Notices-to-Lessees-and-Operators.aspx.

For comparison, the previous schedule of fees is available here: http://www.boemre.gov/ntls/PDFs/09-N13_InspectionFee.pdf.

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US BSEE Requests $25 Million Budget Increase

Created on Monday, 13 February 2012 20:58

The Obama administration has requested $222.2 million to fund the US Bureau of Safety and Environmental Enforcement (BSEE) in fiscal year 2013—a budget increase of $25 million (13%) over fiscal year 2012. Specific plans include:

$4.2 million for environmental enforcement, specifically hiring, training, equipping, and supporting personnel to conduct environmental inspections, Safety & Environmental Management System (SEMS) audits, and other activities
$3.7 million to support training programs for the bureau’s safety inspectors, environmental enforcement officers, and engineers at the new National Offshore Training and Learning Center

BSEE also expects to boost its offsetting collections to $125.9 million—an increase of $4.8 million over 2012. The expected growth includes greater inspection fees, rental receipts, and cost recovery fees from industry.

"Today's budget proposal provides the necessary resources for BSEE to firmly establish itself as a world class offshore safety regulator," said BSEE Director James A. Watson. "We are stepping up our efforts to efficiently process drilling permits, provide better training for our inspectors and engineers, and enforce current requirements while continuing to search for better ways to protect the offshore environment."

The announcement is here: http://www.bsee.gov/BSEE-Newsroom/Press-Releases/2012/press02132012.aspx.

US BOEM Requests $3.3 Million Budget Increase

Created on Monday, 13 February 2012 20:58

The Obama administration has requested $164.1 million to fund the US Bureau of Ocean Energy Management in fiscal year 2013—a budget increase of $3.3 million (2%) above fiscal year 2012. Key priorities include implementing the Five-Year Outer Continental Shelf (OCS) Oil and Gas Leasing Program for 2012 – 2017 and conducting the first oil and gas lease sale under the new program in the first quarter of FY 2013.

The announcement is here: http://www.boem.gov/BOEM-Newsroom/Press-Releases/2012/press02132012.aspx.

BSEE, BOEM Issue Flurry of Notices to Lessees

Created on Tuesday, 03 January 2012 00:00

The US governmental agencies managing exploration and development on the US Outer Continental Shelf issued four Notices to Lessees (NTL) in a span of 4 days.

The Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Offshore Energy Management (BOEM) issued one joint NTL on Dec. 29, 2011: a directive expanding the list of Gulf of Mexico blocks requiring archeological survey. On Jan. 1, the agencies issued two joint Notices to Lessees, and BSEE issued another NTL.

NTL 2012-BSEE-G01 is called Marine Trash and Debris Awareness and Elimination. It provides information on a training video and updates postal and email addresses for submitting annual training reports.
NTL 2012-JOINT-G01 is called Vessel Strike Avoidance and Injured/Dead Protected Species Reporting. It updates guidelines for monitoring programs to reduce the risk of vessel strikes. It also provides specific guidelines for identifying and avoiding injury to marine mammals and sea turtles.
NTL 2012-JOINT-G02 is called Implementation of Seismic Survey Mitigation Measures and Protected Species Observer Program. It clarifies how to implement seismic survey mitigation measures, including ramp-up procedures, the use of a minimum sound source, airgun testing, and protected species observation and reporting.

BSEE Adds to List of Areas Requiring Archeological Survey

Created on Thursday, 29 December 2011 00:00

The US Bureau of Safety and Environmental Enforcement (BSEE) has issued new guidance on archeological survey and reporting requirements for lease blocks in the outer continental shelf. It also added some deepwater OCS blocks to the existing list of areas requiring archeological examination. Most of the additional blocks are shoreward of the 200-meter bathymetric contour line where shallow hazards require survey instrumentation, said BSEE.

See the BOEM Web site for a complete list of Gulf of Mexico OCS blocks requiring archeological resource surveys and reports.

BSEE Conducts Unannounced Spill Drill

Created on Tuesday, 27 December 2011 00:00

The US Bureau of Safety and Environmental Enforcement (BSEE) conducted an unannounced table-top spill drill last week. The drill, carried out by BSEE, the US Coast Guard, and the state of Louisiana, tested Stone Energy Corp.’s ability to respond to a hypothetical well blowout in deep water.

The drill was designed to evaluate the company’s ability to assess a subsea well control situation and mobilize the proper subsea containment/intervention equipment in a timely manner. BSEE said: "A final evaluation will follow when analysis of all documentation is completed."

The Unannounced Spill Drill Program was initiated in 1989.

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