Office of Offshore Regulatory Programs

The purpose of this Notice to Lessees and Operators (NTL) is to provide updated information regarding BSEE’s assessment of civil penalties for violations of the Outer Continental Shelf Lands Act (OCSLA). This NTL replaces NTL No. 2011-N06. Effective July 28, 2016, the maximum civil penalty amount will increase to $42,017 per day per violation in accordance with the authorities described below. BSEE has revised the Civil Penalty Assessment Matrix below to reflect the increased maximum civil penalty amount per day per violation. The increase in the OCSLA maximum civil penalty amount and the revised Civil Penalty Assessment Matrix apply to civil penalties assessed on and after July 28, 2016, even when the associated violation(s) predates July 28, 2016.

Remains Active past Expiration Date due to Continuing Resolution for Appropriations. The purpose of this NTL is to inform you that the Office of Natural Resources Revenue (ONRR) will collect inspection fees from you for FY 2016 as required by Division G, Section 107 of the Consolidated Appropriations Act, 2016 (Public Law 114-113), on behalf of the Bureau of Safety and Environmental Enforcement (BSEE).

ONRR will collect inspection fees from the designated operator of facilities above the waterline, excluding drilling rigs that were in place at the start of FY 2016. For drilling rigs (see definition), ONRR will collect inspection fees for all inspections completed during FY 2016, commencing on the first day of the Federal fiscal year (October 1, 2015). All subsea completions are counted as wells delivering production to a central facility and not as individual facilities requiring a separate inspection fee. Please note that ONRR has already invoiced the designated operators of facilities above the waterline, and for inspections of drilling rigs that have occurred through April 2016.

In addition, prior NTLs on this topic included a statement that structures in State waters that have bottom-founded wells in Federal waters are not subject to the inspection fee. Based on further review and interpretation of the appropriations language, this statement has been removed and the determination made that such structures are subject to the applicable inspection fees.

This Notice to Lessees and Operators (NTL) provides guidance and clarification regarding submission of certified decommissioning cost expenditure summaries following permanent plugging of any well, removal of any platform or other facility, and clearance of any site as required by § 250.1704(h).

Decommissioning Costs Rule Federal Register Post December 4, 2016

National Offshore Training Course Schedule

BSEE is responsible for developing, implementing, and enforcing regulations concerning oil, gas, and sulphur exploration, development, and production operations on the Outer Continental Shelf. BSEE also reviews and approves oil spill response plans submitted by owners and operators of offshore facilities and undertakes periodic inspections of oil spill response equipment.

Quality Control - Failure Incident Team (QC-FIT) technical evaluations are conducted when BSEE determines that a piece of equipment or system(s) used for oil and gas operations offshore could fail to perform safely. SRS/QC-FIT technical evaluations focus on identifying quality assurance (QA)/quality control (QC) concerns for a piece of equipment or system which affects its performance reliability resulting in an impact on the safety of oil and gas operations and environment protection on the Outer Continental Shelf (OCS).