MMS Proposed Rule - Cost Recovery

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Published on November 14, 2005

The MMS has published a Notice of Proposed Rule in the November 14, 2005 edition of the Federal Register that proposes new fees to process certain plans, applications, and permits and seeks additional comments based on an Advanced Notice of Public Rulemaking published in March 2005. That ANPR announced a regulatory initiative regarding cost recovery for activities conducted by the MMS for OCS operations.

The proposed rule addresses cost recovery for activities that are in addition to the activities identified in the August 25, 2005 final rule. The comment period for the proposed rule is November 14, 2005 to January 13, 2006. The following table represents the proposed cost recovery fees for which the MMS is currently seeking comment.

Service	Proposed Fee	30 CFR Citation
Exploration Plan (EP)	$3,250 for each surface location	250.211(d)
Development and Production Plan (DPP)/Development Operations Coordination Document (DOCD)	$3,750 for each well proposed	250.241
Deepwater Operations Plan	$24,200	250.292
Conservation Information Document	$3,150	250.296
Application for Permit to Drill (APD; form MMS-123)	$1,850 Initial applications only, no fee for revisions	250.410(d); 250.411; 250.460; 250.513; 250.515; 250.1605; 250.1617; 250.1622
Application for Permit to Modify (APM; from MMS-124)	$110	250.460; 250.465; 250.513; 250.515; 250.613; 250.615; 250.1618; 250.1622; 250.1704
New Facility Production Safety System Application	$4,750 (> 125 components)(Additional fee of $12,500 will be charged if MMS deems it necessary to visit a facility offshore; and $6,500 to visit a facility in a shipyard). $1,150 (25-125 components). (Additional fee of $7,850 will be charged if MMS deems it necessary to visit a facility offshore; and $4,500 to visit a facility in a shipyard). $570 (< 25 components)	250.802(e)
Production Safety System Application--Modification	$530 (> 125 components). $190 (25-125 components). $80 (< 25 components)	250.802(e)
Platform Application-- Installation--under the Platform Verification Program.	$19,900	250.905(k)
Platform Application-- Installation--Fixed Structure Under the Platform Approval Program.	$2,850	250.905(k)
Platform Application-- Installation--Caisson/Well Protector.	$1,450	250.905(k)
Platform Application-- Modification.	$3,400	250.905(k)
New Pipeline Application-- Lease Term.	$3,100	250.1000(b)
Pipeline Application-- Modification (Lease Term).	$1,800	250.1000(b)
Pipeline Application-- Modification (ROW).	$3,650	250.1000(b)
Pipeline Repair Notification	$340	250.1008(e)
Simple Surface Commingling and Measurement Application	$1,200 (see proposed rule text)	250.1204(a)
Application to Remove a Platform	$4,100	250.1727
Application to Decommission a Pipeline (Lease Term)	$1,000	250.1751 and 250.1752
Application to Decommission a Pipeline (ROW)	$1,900	250.1751 and 250.1752
Permit for Geological or Geophysical Exploration for Mineral Resources or Scientific Research on the OCS related to oil, gas and Sulphur	$1,900	251.5 (form MMS-327)
Permit for Geological or Geophysical Prospecting for Mineral Resources or Scientific Research on the OCS Related to Minerals Other than Oil, Gas, and Sulphur	$1,900	280.12 (form MMS-134)

For more information on this proposed rule, contact Cathy Thornton at JCC.

This Regulatory Alert was prepared by J. Connor Consulting, Inc. to advise our clients of impending deadlines and applicable regulatory requirements. No official agency policy is implied.