The MMS has issued a Notice of Proposed Rulemaking (NPR) that would require operators to develop and implement a Safety and Environmental Management System to address oil and gas operations in the Outer Continental Shelf.

Through data analysis from 2000–2005, MMS found that four of the SEMP elements were key factors in serious offshore incidents, including numerous fatalities. An Advanced Notice of Proposed Rulemaking (ANPR) was issued on May 22, 2006 because of an “identified need for performance improvement.”

The new Notice of Proposed Rulemaking (NPR), released on June 17, 2009, is based on industry and public feedback from the 2006 ANPR. This NPR proposes a partial SEMS requirement focusing on the four RP 75 elements identified by MMS as necessary for performance improvement:

1. Hazards Analyses
2. Operating Procedures
3. Mechanical Integrity
4. Management of Change

MMS uses the more generic acronym SEMS instead of SEMP, which applies to RP 75, to describe the performance-based Safety and Environmental Management System. Under the proposed rule, each company’s SEMS program would be tailored to the scale and complexity of their operations, and structured to include accountability for contractors and subcontractors. The SEMS program would describe management commitment to safety and the environment, as well as policies and procedures to assure safety and environmental protection while conducting OCS operations (including those operations conducted by contractor and subcontractor personnel).

SEMP is designed to be used as a system. In order for the system to work as intended, all elements must be present and functioning correctly.

The MMS would enforce the SEMS requirements via audits. Therefore it is important to note that a comprehensive audit trail is vital for compliance.

General Considerations

Under the proposed rule, operators must ensure that their SEMS programs identify, address, and manage safety and environmental hazards and impacts during the design, construction, startup, operation, inspection, and maintenance of new and existing OCS facilities and DOI regulated pipelines.

Operators must comply with the provisions of this subpart on or before one (1) year after the effective date of the final rule.

SEMS programs must meet the minimum criteria outlined in this subpart and should be modeled after the requirements in:

• API RP 75 SEMP
• Other standards or guidelines (e.g., ISO 9001, 14001) that meet or exceed the API RP 75 standard.

Submitting Comments on the Proposed Rule

Comments on this proposed rule should be received by the MMS on or before September 15, 2009.

Comments can be submitted by any of the following methods. Please reference the Regulation Identifier Number (RIN) 1010-AD15 as an identifier in your message.

• Federal eRulemaking Portal: http://www.regulations.gov.
• Mail or hand-carry comments: Department of the Interior; Minerals Management Service; Attention: Regulations and Standards Branch (RSB); 381 Elden Street, MS-4024, Herndon, Virginia 20170-4817.
  Reference "Safety and Environmental Management Systems for Outer Continental Shelf Oil and Gas Operations, 1010-AD15" in your comments and include your name and return address.
  
  Send comments on the information collection in this rule to: Interior Desk Officer 1010-AD15, Office of Management and Budget; 202-395-6566 (fax); e-mail: oira_docket@omb.eop.gov. Please also send a copy to MMS.

For Further Information Contact

For questions on technical issues contact:

David Nedorostek, Safety and Enforcement Branch

Email: david.nedorostek@mms.gov / Phone: (703) 787-1029

For information on how JCC can assist with SEMS implementation, please contact:

Ken Smith, Vice President of Health and Safety Services

Email: Kenneth.Smith@jccteam.com / Phone: (281) 578-3388