UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT

NTL No. 2019-N05 Effective Date: December 3, 2019

NOTICE TO LESSEES AND OPERATORS OF FEDERAL OIL, GAS, AND SULPHUR LEASES AND PIPELINE RIGHT-OF-WAY HOLDERS ON THE OUTER CONTINENTAL SHELF

Incident and Spill Reports This Notice to Lessees and Operators (NTL) updates and supersedes NTL No. 2008-G17, Incident and Oil Spill Reports, and provides clarification on the types of incidents to be reported and how those incidents should be reported to the Bureau of Safety and Environmental Enforcement (BSEE). Specifically, this NTL provides information on using BSEE’s electronic reporting system to report incidents, spills, and pipeline damage information and specifies the information that should be included in the various required oral and written reports. In addition to providing general guidance applicable to all BSEE Regions, this NTL also provides guidance on requirements for reporting spills and incidents specific to the Arctic Outer Continental Shelf (OCS).

Authority Incident and spill reporting requirements are found in BSEE regulations at 30 CFR Part 250, Oil and Gas and Sulphur Operations in the Outer Continental Shelf, and 30 CFR Part 254, Oil-Spill Response Requirements for Facilities Located Seaward of the Coast Line. Sections 250.186 – 250.190 provide detailed information and reporting requirements. Section 250.188 lists the various types of incidents that you are required to report to the BSEE District Manager immediately through oral communication and to whom you must provide written reports within 15 calendar days after the incident. Pursuant to 30 CFR 250.187(d) and 30 CFR 254.46(b), you must orally notify the BSEE Regional Supervisor without delay if you have (or think you have) a spill of oil or other liquid pollutant from your facility of one barrel or more and provide a written follow-up report to the Chief of the Oil Spill Preparedness Division (OSPD) within 15 days after the spillage has been stopped. In addition, 30 CFR 250.187(d) and 30 CFR 254.46(c) require you to immediately notify the BSEE Regional Supervisor and the responsible party if you observe a spill resulting from operations at another offshore facility.

Reporting requirements related to pipeline repairs are located in 30 CFR Part 250, Subpart J. Pursuant to 30 CFR 250.1008(e), you must notify the BSEE Regional Supervisor before you repair a pipeline, or as soon as practicable, and submit payment of the service fee listed in 30 CFR 250.125. You must also submit a detailed report within 30 days after you complete the repairs including the information described in 30 CFR 250.1008(e)(1)–(3).

Terms BSEE understands the following terms, as used in this NTL and the underlying regulations, to mean:

Collision is defined in 30 CFR 250.188(a)(6) as “the act of a moving vessel (including an aircraft) striking another vessel, or striking a stationary vessel or object (e.g., a boat striking a drilling rig or platform).” Examples of collisions include, but are not limited to: 1). allision(s) that involve an OCS facility and 2). a helicopter striking any part of an OCS facility, including a facility crane.

Crane or personnel/material handling incident (as used in 30 CFR 250.188(a)(8)) refers to an incident involving damage to, or a failure of, the crane itself (e.g., the boom, cables, winches, ballring), other lifting apparatuses (e.g., air tuggers, chain pulls), the rigging hardware (e.g., slings, shackles, turnbuckles), or the load (e.g., striking personnel, dropping the load, damaging the load, damaging the facility) at any time during exploration, development, or production operations on the OCS. This includes all incidents of shock loading that, upon inspection, reveals damage to any part of the crane, lifting apparatus, rigging hardware, or load. Personnel handling incidents include events involving swing ropes, personnel baskets, and any other means to move personnel. Material handling incidents include any activities involving the loading and unloading of material and moving it on, off, or around an OCS facility.

Evacuation (as used in 30 CFR 250.188) refers to the departure by any means of one or more persons on board an offshore facility to shore or to another offshore facility for injury or due to an incident.

Explosion (as used in 30 CFR 250.188(a)(4)) means the rapid expansion of gas. This includes contained explosions resulting from abnormal conditions or operations (e.g., a rich tube ignition). An explosion can happen even if a fire does not occur. Explosions do not include exhaust backfires.

Facility is defined in 30 CFR 250.105, Facility (1) as “all installations permanently or temporarily attached to the seabed on the OCS (including manmade islands and bottom-sitting structures). They include mobile offshore drilling units (MODUs) or other vessels engaged in drilling or downhole operations, used for oil, gas or sulphur drilling, production, or related activities. They include all floating production systems (FPSs), variously described as column-stabilized-units (CSUs); floating production, storage and offloading facilities (FPSOs); tension-leg platforms (TLPs); spars, etc. They also include facilities for product measurement and royalty determination (e.g., lease Automatic Custody Transfer Units, gas meters) of OCS production on installations not on the OCS. Any group of OCS installations interconnected with walkways, or any group of installations that includes a central or primary installation with processing equipment and one or more satellite or secondary installations is a single facility. The Regional Supervisor may decide that the complexity of the individual installations justifies their classification as separate facilities.”

Fatalities (as used in 30 CFR 250.188(a)(1)) means all losses of human life, regardless of the mechanism of injury or nature of the illness.

Fire (as used in 30 CFR 250.188(a)(4)) means “a rapid oxidation process, which is a chemical reaction resulting in the evolution of light and heat in varying intensities” (National Fire Protection Association (NFPA) 921, Guide for Fire and Explosion Investigations, 2017, p. 921-15. A fire includes any incident where there is a visible flame or where there is evidence that burning has occurred, even if the fire was not actually witnessed. Evidence that burning has occurred includes soot, charring, melting, or other degradation of materials due to exposure to heat or direct flame impingement.

Gas releases that initiate equipment or process shutdown (as used in 30 CFR 250.188(b)(2)) refers to any gas release that results in a manual or automated response shutdown function for equipment or process(es).

Immediate[ly] (as used in 30 CFR 250.188) means directly after aiding the injured or stabilizing an event listed in 30 CFR 250.188(a) or without delay if an opportunity arises prior to stabilizing the event to notify an operator representative not on a facility

Incidents […] resulting in property or equipment damage greater than $25,000 (as used in 30 CFR 250.188(b)(4)) means any incident resulting in damage to property or equipment for which the cost of labor and material to restore all affected items to their condition before the damage exceeds $25,000. The property or equipment damaged can include, but is not limited to, the OCS facility, a vessel, and/or a helicopter. Damage costs do not include the cost of salvage, cleaning, gas-freeing, dry docking, or demurrage. BSEE understands that an exact dollar amount cannot be determined immediately after a collision or other damage incident. Operators should use their best judgment(s) about the damage amount in determining whether or not to report the incident. Operators should submit a written report within 15 calendar days of the incident if it is likely that the damage exceeds $25,000 and without delay upon a determination that the damage exceeds $25,000 if you make that determination 15 calendar days after the incident.

Injuries that require the evacuation of the injured person(s) (as used in 30 CFR 250.188(a)(2)) means those occupational injuries that require or result in evacuation of the injured person(s) by any means from the facility to shore or to another offshore facility for the purpose of receiving medical treatment (see definition below). A determination of whether the injury was an occupational injury or requires medical treatment should not inhibit your immediate notification to BSEE of an injury that required evacuation. Occupational injuries include injuries involving any person(s), regardless of their employer or purpose on the facility.

Injuries that result in one or more days away from work or one or more days on restricted work or job transfer (as used in 30 CFR 250.188(b)(1)) means those occupational injuries that result in the person being unable to return to work or to resume all of his or her normal duties (e.g., restricted work, job transfer) on the day after the injury occurred. “Days away from work” includes any day the person was not able to work, or would not have been able to work had the person been scheduled to work (includes weekend days, holidays, vacation days, or other days off).

Loss of well control (as used in 30 CFR 250.188(a)(3)) means the uncontrolled flow of formation or other fluids to an exposed formation (an underground blowout) or at the surface (a surface blowout), flow through a diverter, or uncontrolled flow resulting from a failure of surface equipment or procedures. Examples of uncontrolled flows that must be reported include saltwater flow through a diverter and cementing up the annulus. For the purposes of incident reporting, the following clarifications apply:

Underground blowout - The uncontrolled flow of fluid to an exposed formation or from one formation to another.

Surface blowout - The uncontrolled flow of fluids (outside of pipe) from the mud line up to, but not including, the blowout preventer (BOP) stack or the tree. This includes failure of the casing shoe and associated surface broach. This also includes failure of the casing/conductor string below the BOP stack or tree.

Flow through a diverter - The flow of wellbore fluids through the diverter system, including any system or device whose primary purpose is to safely divert or direct flow.

Failure of surface equipment or procedures – This includes, but is not limited to, a failure of the BOP stack, tree, or monitoring systems that results in an inability to control the flow. This does not include normal leakage; nor does it include surface production equipment (and associated piping) failure that can be isolated and controlled by other surface or subsurface safety devices.

Shallow water flow – The uncontrolled flow of formation water and entrained sand from sub-seafloor shallow formations.

Kick - An influx of formation fluids or gas that results in an increase in pit volume. Without corrective measure, this condition can result in a loss of well control. Where a kick is taken in the wellbore and the secondary barrier equipment (i.e., BOP equipment) is effectively utilized, it is considered a significant event and is not considered a loss of well control. Significant events must be included in the Well Activity Reports (see 30 CFR 250.743(c)) but is not considered a reportable incident under 30 CFR 250.188(a)(3), except as required in the Arctic OCS (see 30 CFR 250.188(c)(1)(iii)).

Note in the Arctic OCS, you must provide immediate notification of any kicks or operational issues that are unexpected and which could result in the loss of well control as per 30 CFR 250.188(c)(1)(iii).

Medical treatment (as used in this NTL, including Attachments 1 and 2) means the management and care of a patient to combat disease, disorder, or injury. It does not include: 1. Visiting a physician or other licensed health care professional solely for observation or counseling; 2. Conducting diagnostic procedures, such as x-rays and blood tests and including the administration of prescription medications used solely for diagnostic purposes (e.g., eye drops to dilate pupils); or 3. Providing first aid (see Attachment No.1 of this NTL for a complete list of first aid treatments).

Muster incident (as used in 30 CFR 250.188(b)(3)) is an incident that requires operations personnel on a facility to muster for evacuation for reasons not related to weather or drills. A muster incident includes, but is not limited to, facility power loss and near misses (e.g., the collision avoidance radar detects a vessel inside the safe zone). A muster incident does not include musters due to false alarms (e.g. an H2S detector malfunctioning).

Releases of hydrogen sulfide (H2S) gas (as used in 30 CFR 250.188(a)(5)) means a gas release which results in a 15-minute time-weighted average atmospheric concentration of H2S of 20 parts per million (ppm) or more anywhere on the OCS facility (30 CFR 250.490(l); see generally 30 CFR 250.490 for H2S requirements).

Oil (as used in 30 CFR 250.187(d)) means oil of any kind or in any form, including but not limited to petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes other than dredged spoil (see 33 U.S.C. 1321(a)(1) and 30 CFR 254.6).

Other liquid pollutant (as used in 30 CFR 250.187(d)) means a hazardous substance, as identified in 40 CFR 302.4 pursuant to 33 U.S.C. 1321(a)(14), in liquid form. This may include, but is not limited to, completion fluids and chemical additives to the production stream, such as methanol and glycol.

Safety systems or equipment (as used in 30 CFR 250.188(a)(9)) includes, but is not limited to, the following: firefighting systems, Emergency Shutdown systems, fire detection systems, gas detection systems, ventilation systems, containment systems, sumps, Subsurface Safety Valves, and well control equipment. You must report to BSEE when one or more safety system(s) are damaged or disabled. Damage to safety device(s) or process component(s) that require(s) and/or result(s) in total process shutdown or damage that renders the safety system inoperable must be reported. If a loss of power event results in damage to or disability of a safety system, it must be reported; however, BSEE recommends that all total loss of power events be reported.

Note: Whereas damaged or disabled safety systems must be reported under 30 CFR 250.188(a)(9), Safety and Pollution Prevention Equipment device failures must be reported per the requirements of 30 CFR 250.803.

Spill (as used in 30 CFR 250.187(d)) is synonymous with discharge as it is defined in 33 U.S.C. 1321(a)(2) (see 30 CFR 254.6). Discharge includes but is not limited to: any intentional or unintentional spilling, leaking, pumping, pouring, emitting (other than natural seepage), emptying, or dumping that does not meet the exemptions specified in 33 U.S.C. 1321(a)(2). A final determination of volume should not inhibit a timely notification of a spill that is or is thought to be over the reportable quantities. The final spill volume can be updated at a later time. A notification to the National Response Center does not alleviate the responsibilities of reporting spills to BSEE as required by 30 CFR 250.187(d).

Structural damage (as used in 30 CFR 250.188(a)(7)) means damage severe enough so that operations on the facility cannot continue until repairs are made. BSEE recommends immediate notification when a person has fully or partially gone through an open hole or insufficient grating.

Oral Incident Notifications If the incident is associated with OCS well or production operations, you must make the oral notifications required by 30 CFR 250.187(d), 30 CFR 250.188(a), 30 CFR 250.188(c)(1), and 30 CFR 250.189 to the appropriate BSEE District or Regional office.

If the incident is associated with OCS pipeline operations, provide the oral notifications required by 30 CFR 250.187(d), 30 CFR 250.188(a), 30 CFR 250.188(c)(1), and 30 CFR 250.189 to the BSEE Regional Supervisor. In the GOM Region, make oral notification to the GOM Pipeline Section. In the Pacific Region, provide the oral notification to the Office of Strategic Operations. In the Alaska Region, use either of the phone numbers listed in the Contacts section of this NTL.

For oral notifications pursuant to 30 CFR 250.188(a), you must provide the information specified in 30 CFR 250.189, including a description of the incident, damage, or injury (see the Written Incident Reports section of this NTL for BSEE’s guidance regarding the description of incident, damage, or injury). For oral notifications pursuant to 30 CFR 250.187(d) and 30 CFR 250.188(c)(1), BSEE requests that you provide the information specified in 30 CFR 250.189. If the incident involves a spill, BSEE requests that you also provide the following information:

1. National Response Center report number; 2. Description of the spill; 3. Spill location, including latitude and longitude and distance to shore; 4. Estimated rate of release and current cumulative volume spilled; 5. Type of hydrocarbon spilled, including APIº gravity; 6. Spill response status, including total amount recovered; 7. Spill source abatement status; and 8. The sea state, meteorological conditions, and the size and appearance of the slick.

Reporting requirements are effective 24 hours a day, seven days a week. If the incident occurs after working hours, then reporting should be made to the appropriate after-hours BSEE office (refer to the Contacts section at the end of this NTL). After-hours includes 4:00PM to 7:00AM local time during the week, all day on weekends, and all day on Federal holidays. You must provide timely oral notification as required by the regulations, and the guidance and clarifications in this NTL should not be construed to inhibit a timely oral notification.

Written Incident Reports For written report submission pursuant to 30 CFR 250.188(a) and (b), you must provide the required written report to the appropriate BSEE District office within 15 calendar days of the incident. In these reports, you must provide the information specified in 30 CFR 250.190.

On the Arctic OCS, you must provide the written report required by 30 CFR 250.188(c)(2) within 24 hours after completing ice management activities. The subject report must contain the information specified in 30 CFR 250.190.

A description of the incident, damage, or injury must be included in all written incident reports (as per 30 CFR 250.190(a)(8)) and all immediate oral notifications under 30 CFR 250.188(a) (as per 30 CFR 250.189(h)). . BSEE’s understanding of what a description of the incident, damage, or injury includes for each incident type is as follows:

Crane or personnel/ material handling: the work being performed, the equipment being used and its location, details about the load and/or materials being used, if persons were injured as a result of the incident, if any equipment or structure was damaged, and the estimated cost to replace the damaged equipment.

Fatality: the