U.S. Department of the Interior Minerals Management Service Gulf of Mexico OCS Region

Today, the Department of the Interior’s Minerals Management Service (MMS) published a proposed rule in the Federal Register which will update and clarify existing regulations found in Title 30, Code of Federal Regulations, Part 250, Subpart A.  The proposal includes a provision that would give the MMS the authority to disqualify operators for poor safety performance on the Outer Continental Shelf.

“Safety is MMS’s top priority for offshore operations, and this regulation will strengthen our effort to make certain that our standards are as high as possible,” remarked MMS Director Cynthia Quarterman.  “Under the proposed rule, MMS would have the authority to disqualify operators from acquiring additional leases if they have repeated poor safety performance.  The agency could also revoke a company’s status as a designated operator.”

Comments from the public on the proposed rule will be accepted for 90 days.  During the open comment period, the MMS will hold a public meeting with industry to consult on establishing criteria for the disqualification provision in the proposed rule.  The meeting will take place on March 24, in Houston, Texas, from 8 a.m. - 12 noon, at the Crown Plaza Sheraton.

MMS is the Federal Agency that manages the Nation’s oil and gas and other mineral resources on the OCS and collects, accounts for, and disburses about $6 billion yearly in revenues from Federal offshore leases and Federal and Indian onshore mineral leases.