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6150 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Proposed Rulesacquisition and processing, graphicsimaging, modeling, and othertechnologies have significantlyincreased exploration, especially indeep water, subsalt plays, and in deeperhorizons of the Gulf of Mexico OCS.I. Background for Expanding the NoticeRequirementThe revised requirement for a noticebefore conducting any G&G scientificresearch was developed to addressinstances in which academicinstitutions conducted research and:• They or industry sponsors held thedata and analyzed and processedinformation as proprietary.• They also offered for sale at leastsome of the data and information.MMS defines such activities as G&Gexplorations and does not considerthem G&G scientific research. A permitis required for exploration. For thesereasons, the expanded noticerequirement is needed to keep MMSinformed of any G&G scientific researchconducted on the OCS related to oil,gas, and sulphur. After receiving thenotice, MMS will inform thoseconducting research of all necessaryenvironmental regulations and laws. Inthis way, the researcher will be betterable to follow safe and environmentallysound practices.II. Clarification of Meaning of Terms‘‘Transfer’’ and ‘‘Third Party’The current rule at §§ 251.11 and251.12 specifies what happens whenG&G data and information aretransferred from one person to anotherperson. MMS lists in the proposed ruleseveral different ways by which a‘‘transfer’’ can take place, for example,by sale, sale of rights, license agreement,or trade. The proposed rule clarifies thatif a permittee transfers data andinformation to a third party, no matterhow that transfer is formulated orcharacterized by the participants, theobligation to provide access to MMS ofthe data and information is a conditionof the transfer. Further, MMS clarifiesthat all third party recipients of the dataand information will be subject to thepenalty provisions of part 250, subpartN, if they fail to meet the obligation toprovide access. The term ‘‘third party’’continues to mean ‘‘any person otherthan a representative of the UnitedStates or the permittee’’ as stated in thecurrent rule. The proposed rule clarifiesthat the third party includes ‘‘allpersons to whom the permittee sold,licensed, traded, or otherwisetransferred data or information acquiredunder a permit.’’ These clarifications arenot new requirements. MMS routinelyobtains G&G data and information frompermittees and third parties to whomdata and information were transferredby a permittee.MMS is including these clarificationsin the proposed rule to eliminate anyconfusion that may arise due tomisinterpretation of the rule. Asmentioned earlier in the preamble,MMS administers G&G exploration andcertain scientific research on the publiclands of the OCS under the authority ofthe OCSLA. Since G&G explorationoccurs on public lands, the MMS, beforeissuing a permit, imposes the conditionthat access to any data or informationacquired must be provided to MMS. Theregulated community is aware beforeobtaining a permit and expending anyresources, or collecting any data andinformation, that it must agree toprovide MMS all the data andinformation MMS requests and thatMMS will pay reasonable costs forreproducing the data and information.III. Discussion of Proposed RuleThese revisions bring Part 251—Geological and Geophysical (G&G)Explorations of the Outer ContinentalShelf up to date with recent changes inrelated regulations at 30 CFR part 250.Section 251.1 of the proposedregulation updates the definition list byremoving unnecessary words andadding, modifying, or expandingdefinitions.Section 251.4(b)(2) explains that anotice will be required for all G&Gscientific research related to oil, gas,and sulphur conducted in the OCSexcept for research requiring a permit.Section 251.5(c)(7) clarifies that at theearliest possible time, the data andinformation acquired through scientificresearch will be made available to thepublic or the permittee or person filinga notice.Section 251.5(d) provides currentaddresses of MMS regional offices asfiling locations for permit applicationsand notices.Section 251.6(c) adds requirementsfor consulting and coordinating all G&Gactivities with other users of the area.Section 251.7(d) changes the bondamount for drilling of a deepstratigraphic test for a single test well,or for an area bond, to be consistentwith the current bonding requirementsin 30 CFR part 256, subpart I, fordrilling under an Exploration Plan.MMS published a proposed rulerevising surety bond requirements onDecember 8, 1995 (60 FR 63011). AfterMMS publishes the final rule on suretybond requirements, we will modify 30CFR part 251 to reflect the changes.Section 251.8(b) specifies that apermittee must request in writing tomodify or extend operations and couldproceed with the modifications onlyafter the Regional Director approvesthem.Section 251.8(c) directs a permittee tosubmit status reports on a schedulespecified in the permit rather thanmonthly. This would allow variations inthe reporting requirements among OCSRegions.Section 251.8(c)(2)(ii) requires thatthe final report contain digitalnavigational data in a format theRegional Director specifies in additionto charts, maps, and plats.Section 251.11 adds processedgeological information to the types ofdata requested throughout this section.The revision of § 251.11(b)(2) clarifiesthat washed samples may no longerreplace paleontological reports and, ifmaintained, should be made availablefor MMS inspection if requested by theRegional Director. Sections 251.11(c)and 251.12(d) clarify that any transfer ofgeological or geophysical data andinformation to a third party wouldtransfer the obligations to provideaccess to MMS as well. When the thirdparty accepts the transfer, it must alsoaccept the obligation to provide accessand is subject to the penalty provisionsof 30 CFR part 250 subpart N, if it failsto do so.IV. Procedural MattersExecutive Order (E.O.) 12866This proposed rule is not significantunder E.O. 12866.Regulatory Flexibility ActThe Department of the Interior (DOI)has determined that this proposed rulewill not have a significant economiceffect on a substantial number of smallentities. In many ways MMS offerscustomer service to a number of smallcompanies that participate in G&Gwork. An example is the northern Gulfof Mexico Oil and Gas Atlas whichMMS helped to develop. This atlasclassifies reservoirs based upon geologicand engineering parameters. The atlaswill assist smaller oil and gascompanies to more efficiently discoverand develop hydrocarbons in theoffshore northern Gulf of Mexico. Therevised requirements in this proposedrule contain simple and routinerequirements that can be carried out ata negligible cost. The benefits of therevisions are many. MMS would informthose conducting G&G research ofenvironmental laws and regulations andthus ensure environmentally safe andsound practices. The revisions wouldalso help to minimize conflict withother users of the area. The rule is in