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Memorandum of Understanding

Between Minerals Management Service
U.S. Department of the Interior

and

United States Coast Guard
U.S. Department of Transportation

NOTE: This document is also available for download in Adobe's Portable Document Format (PDF). You may find this format preferable for printing purposes.

	Final Copy of MOU as signed
	Final Copy of MOA as signed.
	Federal Register Notice containing the final language for the MOU: January 15, 1999.

Ia. Purpose

This Memorandum of Understanding (MOU) defines the responsibilities of the Minerals Management Service (MMS) and the United States Coast Guard (USCG) relating to managing the activities of MODU’s, fixed, and floating systems. It is designed to minimize duplication and promote consistent regulation of facilities under the jurisdiction of both agencies. This MOU does not apply to deepwater ports as licensed by the Secretary of Transportation under the Deepwater Port Act of 1974, as amended.

Ib. Scope

This MOU covers oil and gas activities located in the Outer Continental Shelf (OCS). However, oil-spill preparedness is for facilities located seaward of the coast line, unless noted otherwise. Certificates of financial responsibility are for certain facilities located in the OCS and the State waters included in the definition of Covered Offshore Facility found at 30 CFR 253.3. An MOU, dated February 3, 1994, among the Departments of Transportation and the Interior and the Environmental Protection Agency established jurisdictional responsibilities for facilities located both seaward and landward of the coast line.

II. Definitions

For purposes of this MOU, the following definitions apply:

Act - The OCS Lands Act (OCSLA) -- 43 U.S.C. 1331 et seq.

Coast Line - The line of ordinary low water along that portion of the coast that is in direct contact with the open sea and the line marking the seaward limit of inland waters, as defined by the Submerged Lands Act (43 U.S.C. 1301 (c)).

Outer Continental Shelf – The submerged lands that are subject to the Act.

OCS Activity - Any activity in the OCS associated with exploration, development, production, transporting, or processing of OCS mineral resources including but not limited to oil and gas.

OCS Facility - Any artificial island, installation, pipeline, or other device permanently or temporarily attached to the seabed, erected for the purpose of exploring for, developing, producing, and transporting resources from the OCS. This term does not include ships or vessels for transporting produced hydrocarbons. The following are types of OCS facilities:

OPA - The Oil Pollution Act of 1990 (Pub. L. 101-380).

Regional Director (RD) - The MMS officer delegated the responsibility and authority for a region within MMS. The USCG referrals for violations occurring in a particular MMS Region would be made to that MMS Region's RD.

Regional Supervisor (RS)- The MMS officer (or the authorized representative) in charge of operations within a Region.

Vessel - Every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on the water. This term does not include atmospheric or pressure vessels used for containing liquids or gases.

Violation - Failure to comply with the OCSLA, any regulations, or the terms or provisions of leases, licenses, permits, or rights-of-way issued under the OCSLA.

III. Responsibilities

The following table lists the lead agency for system responsibilities associated with MODU’s and fixed and floating OCS facilities. Other agency roles are identified where applicable. The lead agency is responsible for coordinating with the other agency as appropriate. The attachments to the table list the typical equipment that is included in the system.

The MMS and USCG will work together to develop the standards necessary to implement this MOU. Where the agencies have overlapping responsibilities, they will work together to minimize duplication.

IV. Civil Penalties

The USCG reports violations of OCSLA statutes or regulations that may result in civil penalty action to MMS. The USCG will investigate and document OCSLA based violation cases according to the procedures in 33 CFR 140.40 with the following clarification:

1. The cognizant Officer-in-Charge, Marine Inspection (OCMI) makes the determination whether a violation "constitutes or constituted a threat of serious, irreparable, or immediate harm." If the OCMI determines:

When referring a case to MMS, the OCMI will forward the following information:

2. If the violator files an appeal of a USCG’s enforcement action the USCG will not forward the case to MMS until the appeal has been resolved.

3. Upon receipt of the violation report, the MMS Regional Civil Penalty Coordinator will appoint a Reviewing Officer (RO) who will process the report in accordance with the MMS OCS Criminal/Civil Penalties Program Guidebook.

4. Notification of the MMS RO’s decision regarding the civil penalty assessment, collection, compromise, or dismissal shall be provided to the OCMI originating the violation report.

A. Certificates of Financial Responsibility (COFR)

1. The MMS issues certifications of oil-spill financial responsibility for certain facilities located in the OCS and State waters included in the definition of Covered Offshore Facility found at 30 CFR 253.3. The COFR ensures that responsible parties can pay for cleanup and damages from facility oil spills.

2. The MMS will provide COFR-related information to the USCG upon request. Upon request from the USCG, MMS will provide available information for any covered OCS facility (COF) in certain OCS and the State waters included in the definition of Covered Offshore Facility found at 30 CFR 253.3 that are involved in an oil pollution incident including:

(1) Copies of the lease, permit, or right of use and easement for the area in which the COF is located;

3. The USCG issues COFR for vessels and floating OCS facilities which store oil. This COFR is in addition to the MMS COFR and addresses the operator’s financial responsibility for the clean up and damages from oil discharges resulting from non-well-related sources and produced oil stored onboard the floating OCS facility.

B. Oil Spill Preparedness and Response Planning

1. The MMS, for all facilities seaward of the coast line, requires that responsible parties maintain approved Oil Spill Response Plans (OSRP) consistent with the area contingency plan; ensures that response personnel receive training; and that response equipment is inspected. The MMS will require unannounced oil-spill response drills. The MMS RS will advise the Federal On Scene Coordinator (FOSC) of drills to coordinate participation, and avoid conflict or duplication.

2. The USCG Captain of the Port serves as the pre-designated FOSC in accordance with the National Contingency Plan. The appropriate FOSC will also jointly approve OSRPs for floating facilities which store oil. Participation in MMS drills will be at the discretion of the FOSC. The FOSC will advise the MMS RS of spill-response drills and activities, such as exercise and response activities, occurring on facilities seaward of the coast line.

C. Spill Response

1. All spills are required to be reported to the National Response Center (NRC). The NRC provides notification to the appropriate agencies and State offices. Additionally, OCS facility owners or operators are required to report spills of one barrel or more to the MMS RS.

2. The FOSC will direct and monitor Federal, State, and private actions, consult with responsible parties, and determine the removal action. The MMS RS will direct measures to abate sources of pollution from an OCS facility. However, if a discharge poses a serious threat to public health, welfare, or the environment, in accordance with Public Law 101-380 (OPA) Sec. 4201, the FOSC may mitigate or prevent the substantial threat of a discharge and notify the MMS RS as soon as possible. The MMS will authorize the return of an OCS facility to operation in coordination with the FOSC.

VI. Exchanging Services and Personnel

To the extent its own operations and resources permit, each agency will provide the other agency with assistance, technical advice, and support, including transportation, if requested in accordance with 43 U.S.C. 1348. Exchange of services and personnel is non-reimbursable (except for pollution removal funding authorizations for incident specific fund access). The assistance may extend to areas beyond the OCS where one Agency's expertise will benefit the other agency in applying and enforcing its safety regulations.

VII. Other Cooperative Functions

1. Both agencies will exchange data and study results, participate in research and development projects, and exchange early drafts of rulemaking notices to avoid duplicative or conflicting requirements.

2. Both agencies will review current standards, regulations, and directives and will propose revisions to them as necessary in keeping with the provisions of this MOU.

3. Both agencies will review reporting and data collection requirements imposed on operators of OCS facilities and, where feasible, eliminate or minimize duplicate reporting and data collection requirements.

4. Each agency will conduct scheduled and unannounced inspections to ensure compliance with its own requirements. If the inspector notices deficiencies that fall within the responsibility of the other agency, the deficiency will be reported to the other agency for action. However, if the deficiency may cause serious or irreparable harm to persons, property, or the environment, the inspector may take the necessary preventative action. The preventative action will then be reported to the other agency.

VIII. Accident Investigations

The MMS or the USCG is responsible for conducting investigations and preparing a public report for each major fire, oil spillage, serious injury, and fatality associated with OCS activities. To avoid duplication of effort and to simplify administration, the responsibility for investigating and preparing a public report for these incidents rests with the agency that is listed in Section III as being responsible for the system associated with the incident. In addition, the MMS investigates blowouts and the USCG investigates collisions.

For those incidents for which both agencies have an investigative interest in the system associated with the incident, one agency will assume lead investigative responsibility with supporting participation by the other agency. The lead agency in a joint investigative effort shall investigate and prepare, approve, and release the report in accordance with the normal procedures of that agency, subject to the following terms and conditions:

IX. Implementing this MOU

1. Each agency will review its internal procedures and, where appropriate, will revise them to accommodate the provisions of this MOU. Each agency will also designate in writing one senior official who will be responsible for coordinating and implementing the provisions of this MOU.

2. Each agency will designate regional officials to be responsible for coordinating and implementing the provisions of this MOU in their respective regions.

3. The USCG--MMS MOU concerning regulation of activities and facilities in the OCS, dated August 29, 1989 is canceled on the effective date of this agreement.

4. If new technology (or new uses of current technology) require a change to this MOU, the MMS regional office and appropriate USCG district will work together to reach an agreement. The MMS regional office and the USCG district will notify their respective Headquarters office of any change. If the MMS regional office and the USCG district office can't reach an agreement, it will be elevated to MMS and USCG Headquarters. The new policy will become part of a revised MOU the next time the MOU is revised.

X. Savings Provision

Nothing in this MOU alters, amends, or affects in any way the statutory authority of MMS or the USCG.

XI. Effective Date

This MOU is effective upon signature.

XII. Termination

Both parties may amend this MOU by mutual agreement and either agency may terminate it with a 30-day written notice.

Signed at Washington, D.C., December 16, 1998 by

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