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Decommissioning FAQs

Generally, after the useful life of an oil and gas platform, it must be decommissioned (i.e., dismantled and disposed of) according to the terms of the Department of the Interior (DOI) lease by which the platform was authorized. DOI regulations include a disposal option that, under certain circumstances, allows keeping a biologically valuable structure in the marine environment as an artificial reef through a process called “Rigs-to-Reefs.” Artificial reefs not only can enhance aquatic habitat, but also provide an additional option for conserving, managing, and/or developing fishery resources and can provide recreational opportunities.

Which States have approved Rigs-to-Reefs programs?

As of September 2012, the States of Louisiana, Texas, Mississippi, and California have passed specific legislation to establish programs for building artificial reefs from oil and gas platforms. To date, the Louisiana Department of Wildlife and Fisheries, the Texas Parks and Wildlife Department, and the Mississippi Department of Marine Resources have administered State artificial reef plans, including ongoing offshore Rigs-to-Reefs programs.

What is the National Artificial Reef Plan?

The National Artificial Reef Plan provides guidance on various aspects of artificial reef use, including types of construction materials, and planning, siting, designing, and managing of artificial reefs for the benefit of aquatic life. The Department of Commerce, under the auspices of the National Oceanic and Atmospheric Administration (NOAA), developed the National Artificial Reef Plan in order to guide understanding of the many facets of artificial reef development and use, including the roles of Federal, State, and local governments.

What is Rigs-to-Reefs?

Rigs-to-Reefs is a process, managed by Federal and State agencies, by which operators choose to donate – rather than scrap – decommissioned oil and gas platforms to coastal States to serve as artificial reefs under the National Artificial Reef Plan. Decommissioned structures are typically toppled in place, partially removed near the surface, or towed to existing reef sites or reef planning areas.

Does the use of explosives harm marine life?

The underwater detonation of explosives does result in a shock-wave and acoustic energy that can kill or harm marine species (i.e., fish, sea turtles, and marine mammals). In addition, underwater detonation may disrupt or damage marine life established on, at, or near the platform structure. Operators, therefore, are required to mitigate risks to protected species and all decommissioning operations must comply with a variety of Federal laws and regulations designed to protect endangered and threatened species as well as marine mammals.

How are platforms removed? Are explosives used?

OCSLA regulations require the operator to sever bottom-founded objects and their related components at least 15 feet below the mudline before removal. Platform operators typically use one of two primary options to sever structures attached to the sea bottom- “mechanical severance” or “explosive severance” methods. BSEE regulations do not mandate which method or tool is to be used, as not all cutting options work in every single situation.

Can inactive oil and gas platforms be marked for navigation and left standing in place?

In general, under OCSLA and DOI’s implementing regulations, non-producing platforms must be removed because they can create serious safety, environmental, and navigational risks. Abandoned platforms may deteriorate, making them more susceptible to structural failure, or can be toppled by hurricanes, potentially damaging neighboring active infrastructure. Under certain circumstances, a platform may remain in place for the creation of an artificial reef; this is known as reefing-in-place, which differs from abandonment of the platform.

What is the “idle iron” policy and why does it exist?

In October 2010, BSEE published Notice to Lessee (NTL) 2010-G05, “Decommissioning Guidance for Wells and Platforms” (sometimes referred to as the “Idle Iron” policy) to clarify existing regulations that apply when a well or platform is “no longer useful for operations,” and needs to be plugged (in the case of a well) or removed (in the case of platforms and other structures). NTL 2010-G05 clarifies that BSEE orders wells that were not useful (had not produced for five years) at the time the NTL was published to be plugged by October 2013.

What is decommissioning of offshore platforms?

Decommissioning is the process of ending offshore oil and gas operations at an offshore platform and returning the ocean and seafloor to its pre-lease condition. The Outer Continental Shelf Lands Act (OCSLA) and implementing regulations establish decommissioning obligations to which an operator must commit when they sign an offshore lease under the OCSLA, including the requirement to apply for and obtain a permit for subsequent removal of platforms.

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