BSEE and Coast Guard Sign Memorandum of Agreement for Regulating Mobile Offshore Drilling Units
On June 4, 2013, the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement (“BSEE”) and the U.S. Coast Guard signed a Memorandum of Agreement regarding division of lead agency responsibilities between the two agencies for regulation, inspection, and oversight of systems and sub-systems on mobile offshore drilling units (“MODUs”) used for oil, gas, or sulphur drilling, production, or related activities. The lead agency will be responsible for coordinating with the other agency as appropriate.
MODUs fall under Coast Guard authority for regulation of vessels, are inspected and certificated by the Coast Guard, and are subject to USCG regulatory authority under the Outer Continental Shelf Lands Act for matters relating to the protection of life and property, as well as for unregulated hazardous working conditions on the Outer Continental Shelf. During periods when a MODU is temporarily attached to the seabed, BSEE regulates well operations, including drilling, completions, workover, production, and decommissioning.
The Memorandum of Agreement sets forth the basis on which BSEE and the Coast Guard intend to work together to identify and coordinate responsibilities for the inspection and oversight of MODUs. Implementation is to be in accordance with a prior Memorandum of Understanding executed between the two agencies on Nov. 27, 2012, which generally addressed coordination of shared agency responsibility for management of the Outer Continental Shelf. As illustrated in the chart below, this new Memorandum of Agreement presents a detailed breakdown of lead responsibility by system and sub-system, thereby allowing operators of MODUs to more quickly identify the principal agency with regulatory oversight over any specific area.
Under the Memorandum of Agreement, the Coast Guard will have lead agency responsibilities over the following systems and sub-systems:
| System | Sub-System |
| Structural Integrity | Structural integrity, modifications for construction and repair requirements Design environmental conditions |
| Floating Stability | |
| Station Keeping | Foundations, supporting mat, spud cans or footings Mooring and anchoring equipment Dynamic positioning |
| Lightering Equipment & Procedures | |
| Marine Engineering Systems | |
| Lifts, Elevators and Personnel Transfer | |
| Aircraft Landing and Refueling | Decks, fuel handling, and storage |
| Fire Protection | Structural fire protection for accommodations Fire suppression systems Firefighting, water pumps, piping, hose reels and monitor equipment Fixed fire extinguishing equipment Portable and semi-portable extinguishers Fire and smoke detection Gas detection systems approval |
| Electrical Design & Equipment (other than electrical equipment on the drill floor) | |
| Hazardous Areas | Hazardous area classification & equipment approval |
| Aids to Navigation | |
| Communications | |
| Pollution Prevention | Prevention of unauthorized discharges to marine environment Petroleum and other product transfers to and from a vessel (including transfer of produced hydrocarbons) |
| Marine Cranes and Material Handling Equipment (other than cranes and lifting systems associated with drilling) | |
| Ventilation in Non-Hazardous Locations | |
| Life Saving Equipment | |
| Workplace Safety and Health | |
| Living Quarters and Accommodation Spaces |
|
| General Arrangements (including means of escape) | |
| Operational Requirements | Structural inspection requirements Manning/credentialing of Coast Guard credentialed personnel Training of Coast Guard credentialed personnel Emergency evacuation plans Drills – fire, abandon, and lifeboat Inspection and testing of marine and lifesaving equipment |
BSSE’s lead agency responsibilities will extend to the following areas:
| System | Sub-System |
| Structural Integrity | Risers (drilling and pipeline) |
| Station Keeping | Mooring analysis & anchoring plan |
| Drilling, Completion, Well Servicing & Workover Systems | Drilling systems Blowout prevention equipment and control systems Riser and guideline tensioning systems Motion compensating systems Atmospheric vessels and piping Lifting and hoisting systems Cementing systems Circulating systems Bulk drilling, material storage and handling systems Drilling Floor Electrical Equipment |
| Pipeline Operations and Components | |
| Fire Protection | Gas detection in drilling fluid handling areas |
| Hazardous Areas | Hazardous area equipment in the drilling fluid handling areas |
| Pollution Prevention | Pollution associated with exploration, development, production, and transportation of oil and gas and sulphur |
| Operational Requirements |
Training of drilling personnel For floating drilling units, a Contingency Plan for moving off location in an emergency situation Well control drills Testing of Emergency Disconnect Systems and disconnect functions of blowout preventer Inspection and testing of all drilling equipment H2S contingency plan (including equipment, control, and detection systems) Production test flow-back system (if installed) |