The MMS posted a proposed rule in the October 1, 1999 Federal Register (page 53298). This proposed rule would clarify some unresolved regulatory issues involving the 1996 memorandum of understanding between the DOI and DOT. It would primarily address producer-operated pipelines that do not connect to a transporting operator's pipeline on the OCS before crossing into state waters. This rule will also set up procedures for producer and transportation pipeline operators to get permission to operate under either MMS or DOT regulations concerning pipeline design, construction, operation, and maintenance according to their operating circumstances.

The MMS will consider all comments received by November 30, 1999. Comments received after that date may be considered.

The proposed rule will give the following jurisdictions:

  • Pipeline segments upstream of the last valve on the last OCS production facility should be operated under DOI regulatory responsibility. This responsibility would include the last valve on the last production facility and any related safety equipment. DOT would have regulatory responsibility for the pipeline segments shoreward of the last valve. DOT would have authority to inspect upstream safety equipment that may serve to protect the integrity of the pipeline segments.
  • For any OCS pipeline segment that DOT has determined to be "DOT non-jurisdictional," the OCS portion of the pipeline would be subject to MMS regulation, and the portion of the pipeline that lies in State waters would be under State Jurisdiction.
  • If a producer-operated pipeline has a subsea valve located on the OCS and shoreward of the last OCS production facility, the operator may choose that valve as the boundary between DOI and DOT regulatory responsibility. According to this proposed rule, producing operators who have been operating under DOT regulations must petition, in writing, the MMS Regional Supervisor for permission to continue operating under DOT regulations concerning pipeline design, construction, operation and maintenance. The Regional Supervisor will decide these on a case-by-case basis. Similarly, transportation pipeline operators may ask the MMS Regional Supervisor, in writing, for permission to operate under MMS regulations governing pipeline design, construction, operation, and maintenance. In considering these petitions, the Regional Supervisor will consult with the OPS Regional Director. This Federal Register Notice for this MMS Proposed Rule is available for viewing or download on the RCP Website.