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OOC December General Meeting

December 7, 2016 7:30am – 6:30pm

Harrah’s Hotel, New Orleans

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Internet Access

• HARRAH – open • No password needed

Antitrust Review • The Sherman Act and the Clayton Act are federal statutes which make

certain agreements in trade restraint illegal. Violators can be subject to criminal penalties and large monetary damages.

• The purpose of antitrust policies is to restrict communications concerning cost, production or other trade sensitive information which could be the foundation for such illegal agreements

• So we should always: – Avoid discussing cost, production, market analysis or other competitive

trade sensitive data – Have an agenda reviewed by own legal counsel – Report to our own counsel any concerns that we have of variation from

the agenda – Keep minutes for a record of our discussions

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SAFETY MOMENT David Helminiak, EnVen

As a Safety professional, are you a good patient?

They say doctors make the worst patients.

Or do you ignore your own advice?

We are all guilty.

Have you ever used your buddy for a table saw?

Probably not, but I bet you have:

Removed the guards to make that special cut?

Did you ever plug your Christmas lights up in the rain?

Did you ever find the quickest way onto the roof so you could fix the one strand of bubbles that’s been giving you problems

since you installed them?

Have you ever been to the hardware store and just couldn’t wait for the clerk to get the

ladder to get that item off the top shelf?

None of us text and drive.

When is the last time you checked your email or looked up a location on your maps application?

Anyone do this lately?

Any distractions while driving can yield the same results as texting.

All of us have been safety trained.

All of us know the common sense of being safe.

We just need to be good patients and practice what we preach.

2016 General Meeting Sponsors

SUBCOMMITTEE REPORTS Drilling , Technical / Deepwater, Platform, Pipeline

Drilling Subcommittee

Chair: Scherie Douglas Co-Chair: Bill Dehart

Current Activities

• Final Well Control Rule published and effective • BSEE held a workshop in August in Houston • Established BSEE policies would be in writing

on their Q&A website – not verbal • Committee held teleconferences to discuss

issues and potential further interaction with BSEE

Looking Forward

• Doug Morris agreed to meet if specific questions are given to him ahead of time

• Potential to form subgroups for: – BOP flowing conditions – Lift boats – Conditions of approval – Inspection Results – Interventions and Coil Tubing – Accumulator Bottles

Technical / Deepwater Subcommittee

Chair: Sandi Fury, Chevron Co-Chair: Bill Terrebonne, Shell

Issues – Work in Progress Royalty Reporting Work Group (Greg Necaise – Shell / Stella Alvarado - Anadarko) • Recommended Practice for Development of a Data Integrity Management

Program for Gulf of Mexico Operations is currently at about 80% complete – Held follow-up review with Kimbra from ONRR in early November – Possible presentation to GAO in Q1 2017

Measurement Work Group (Chad Simonton – Shell) • New Best Practice for Measurement Sealing (Site Security) - OOC website • New Surface Commingling Permit Application guidance – 90% complete – Reviewed draft with BSEE’s Measurement Approval & Enforcement Section 11/15/16

• Next Steps – Understand expectations of API Standards incorporated by reference on compliance

– Consider BLM Onshore Orders for measurement to understand impact if adopted by BSEE

Subpart H – Production Safety Rule (Bill Terrebonne – Shell / David Dykes – Chevron) • FR Publication Sept 7, 2016 with effective date of Nov 7, 2016 • Met w/BSEE GOM Region - Nov 7

– PSVs new test requirements – Annual Inspection/Testing Requirements – when due? – Fired components inspection and flame arrestors – Facility drawings – Certifications (SPPE, Drawings, company certifications) – Atmospheric Vessels

• Next steps – 12/14 workgroup mtg – PSV new test requirements – Next year: Failure reporting discussions to be held w/BSEE HQ - further defining of

failure for reporting purposes (future)

Issues – Work in Progress

Subpart H: BSEE GOM Region Feedback

• BSEE acknowledges unanticipated implementation problems with the rule • They are willing to work with operators to grant more time. • The mechanism will be departure and/or alternate compliance requests

from each operator. • BSEE is unwilling to grant “across the board” extensions – they want to

address problems on a case-by-case basis. • Operators should file letters seeking extensions / departures at the Region.


Safe Lift (Sandi Fury – Chevron) • Continue to press for a solution to the complex heavy lift issue recognizing

the lack of US Coastwise capability and maintaining critical best practices that deliver safe operations

• Critical to construction operations on the OCS

Well Intervention Workgroup (Evan Zimmerman, Greg Southworth – OOC) • Well intervention activities defined • Bow-ties developed for each case (70) • Work to be recognized in NOSAC report

Hydraulic Stimulation (Sarah Tsoflias – Chevron) • Continue technical work to support Industry engagement with the Agencies on

fracking / well stimulation and completion practices in support of permit renewals, to address operational questions and support robust NEPA reviews


BSEE Cost Recovery Fee (NPR) • FR publication November 17, 2016

- Comments on rule due January 17, 2017 - Comments on information collection due December 19, 2016

• Revises recovery fees for 31 different services. Most noticeable changes: - DWOP – Complex (New Technology) - $70,333(+ $66734) - DWOP – Simple - $14,290 (+ $10691) - APD - $10,420 (+ $8377) - Downhole commingling - $14064 (+ $8285) - Voluntary Unitization - $27288 (+ $14669)

• Letter being drafted seeking an extension of 30 days to address due to holidays

• Working on potential information collection burden response


Financial Assurance • Jt Trade Workshop with NOIA/LMOGA held Nov 17 which documented

concerns with current Agency direction – Over 100 participants – Diverse participation including BOEM, Surety Providers

• Jt trade letter sent to Dir Hopper on 12/2 articulating concerns based upon key messaging derived from workshop

• Next Steps – Continued dialogue with BOEM to address issues and seek stay of

program until remedied


Issues – For Consideration 2017 • Orderly decommissioning of deepwater infrastructure

– Changes in BOEM policy are evolving that will impact deepwater infrastructure abandonment activities

– Consider development of Best Practices Document to address orderly and safe dismantling of deepwater infrastructure

• OOC RTM Workgroup – Identify opportunities to achieve safety enhancements potentially

derived from remote RTM as a requirement of operations – Distinguish value of immediate from delayed data delivery and RTM

from remote RTM – Delineate Condition Based Monitoring (CBM) opportunities from

safety critical information

Contact Information

For Questions or Information… • Sandi Fury, Chevron

– [email protected]

• Bill Terrebonne, Shell

– [email protected]

mailto:[email protected]


Platform Subcommittee

Floater Chair: Craig Mullett, LLOG Fixed Chair: Steve Franz, Talos

Current Activities

• API RP 2L – Currently at an impasse

– HSAC committee members will not compromise on required helideck size for minimal structures

– Proposed 2L helideck size requirements will eliminate the installation of helidecks on freestanding caissons and some braced caisson structures

– Path forward and timing is unknown

Current Activities

• API RP 2CCU • 2CCU seeks to standardize and provide recommended

practice for the design, construction, marking, testing and repair and maintenance of cargo containers used in a marine environment.

• Current draft document was draft balloted, comments addressed, re-drafted and put on official ballot with deadline of December 16, 2016.

• After balloting and comment resolution the new API RP will be rolled out with a tentative release by mid 2017.

• BSEE will now move to the review and potential incorporation by reference of this document.

Pipeline Subcommittee

Chair: Joyce Davis, Shell Co-Chair: Michael Butler, ExxonMobil

Current Activities

• NPRM, “Pipeline Safety: Safety of Hazardous Liquid Pipelines” OOC Comments Filed Final Rule expected publication 1Q17 Potentially significant impact

• USACOE Galveston District, BSEE and Industry • Consistent framework for pipeline abandonment in place

vs. removal Monitoring Corps developments

Current Activities

• Engagement with BOEM, BSEE and LACZM • Focused on OCS sediment resource area designations

requiring pipeline removals Initial OOC engagement discuss concerns apparent inconsistencies to policy and possible

solutions for a path forward

Looking Forward

• Continued engagement with BSEE, BOEM, LACZM on sediment resource areas – develop a mutually agreeable solutions – Explore possible development of industry and

regulator sand sediment forum • Potential engagement with BSEE

– develop guidance for proper procedures and expectations for submittal for various permit requests. (e.g., Possible Guidance Document)

– potential safety and environmental inspection of Pipeline ROW Platforms.

Sand Sediment Working Group Meeting

• Hosted by BOEM’s Marine Minerals Program and GOMA

• Thursday, December 15, 2016 from 9:00 a.m. – 4:00 p.m.

• Location: Hilton Riverside Hotel, New Orleans, St. James Ballroom of the Hilton Riverside

BSEE GOM UPDATE ON INSPECTIONS, DECOMMISSIONING AND NEW REGULATION IMPLEMENTATION – LARS HERBST

OOC General Meeting

BSEE Key Issues Lars Herbst, PE

Regional Director Gulf of Mexico Region

December 7, 2016

“To promote safety, protect the environment and conserve

resources offshore through vigorous regulatory oversight and

enforcement.”

• Well Control Rule/Production Safety System Rule • Decommissioning cost • BSEE prospective on bankruptcies • Ide Iron • Deep water decommissioning • Risk Based Inspections • Maintenance and staffing in the low oil price

environment

Topic Agenda

• Presentation will be made available on the BSEE.gov website.

SUBCOMMITTEE REPORTS eGov, Fisheries & Restricted Areas

eGov Subcommittee

Chair: Connie Goers, Arena Co-Chair: Eva Gravouilla, Stone Energy

Current Activities

• BOEM – ePlans – Follow up ePlan Workshop held at BOEM’s

Regional Office in September 2016 • OOC continues to have great participation in these

workshops, and we continue moving forward with BOEM to resolve questions, comments and suggestions.

• Anticipate rollout Summer/Fall 2017 (not factoring in proposed air emissions)

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Current Activities

• BSEE – eOSRP • eOSRP module is scheduled to be released internally

December 2016 which will allow data from their old system to be migrated into the new system

• BSEE anticipates going live to the external companies 1st Quarter 2017

• Training is planned for both Houston and New Orleans with dates to follow

Current Activities

• BSEE – eFacility Safety System (FSS) • Module still in a voluntary utilization mode post the issuance

of NTL 2015-N05 “Electronic Submittal of Production Facility Safety System Applications”

• Updated system to ensure email notifications include project area (Area/Block, Rig/Platform name) with the identification number

• Current utilization rate is at 73% • BSEE anticipates a new NTL will be issued changing to

mandatory when they reach +80% • BSEE is also reviewing required drawings list to ensure all are

listed per the recently updated Subpart H

Current Activities

• BSEE – eIncidents of Noncompliance – Updated system to ensure email notifications include

project area (Area/Block, Rig/Platform name) with the identification number

– Resolved issue on providing operator representative with electronic version by downloading to a thumb drive

– BSEE is finalizing an internal policy document which should be signed by BSEE Headquarters soon.

– Inspectors have been advised to issue INC’s electronically and the company representative to sign on the Toughbook

Current Activities

• BSEE – eIncidents of Noncompliance • Shut in (facility & component) INC’s can be issued each

day during inspection • Warning INC’s are generally issued on the last day of

inspection. • Company representatives are to provide BSEE with at

least one email address to forward eINC to company representative

Current Activities

• BSEE – eIncidents of Noncompliance • During November 2016, BSEE issued 94 electronic

INC’s; of which 39 were downloaded onto thumb drives at the request of the company representative

• Approximately 74% of all INC responses are submitted via this system

• BSEE requesting that any open paper INC’s be closed out within the system by uploading a copy of the actual submittal

Current Activities

• BSEE – eInspections • This module is being expanded to allow the BSEE

Inspectors to email inspection reports and receipts • Anticipate implementation early 2017

Current Activities

• BSEE – ePerformance Measures – Project placed on hold by Headquarters – Jason Matthews will be the assigned SME – System will be designed to

• Obtain statistical data as we normally receive from BSEE for Annual Performance Review Meetings

• Submit Annual Performances Measures Data

Looking Forward

• BSEE/BOEM – ePermits – 2017/2018

• ePipelines – Bimal Shrestha will be SME – Module design to start this year with a target completion date

of June 2017 – Design will include all applications/submittals currently

reviewed by the BSEE Pipeline Section. – Uncertain if rollout will be by phase or until design and testing

completed for all applications

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Looking Forward


• BSEE SEMS – Module elevated by BSEE Headquarters – Target design completion date late 2017

• BSEE Technical Assessment Section – DWOP’s/CID’s – Target design completion date late 2017

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Looking Forward


• BSEE eWell – All existing well permits in the stand-along system – Convert existing system to incorporate under the TIMS System – Target design completion date is late 2017

• BSEE Production & Development – All existing lease and well permit applications submitted to

this section – Target design completion date is late 2017

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Looking Forward


• BSEE OSTS Section – All existing structural applications submitted to this Section – Target design completion date is mid 2018

• BSEE Decommissioning Costs • BSEE Idle Iron Plans • Financial Risk Management

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Looking Forward

• OOC eGov Subcommittee – Appears 2017 has potential to be more active on

the upcoming modules kicking off development – Proposing to draft letter from OOC to BOEM/BSEE

on our continued participation and possibly at an earlier stage

– Schedule meeting post submittal of letter to define 2017 priorities

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eGov Subcommitte Contact Information

• Connie Goers - Arena – 281.210.3123 – [email protected]

• Eva Gravouilla - Stone – 337.521.2169 – [email protected]



Restricted Areas - Fisheries Subcommittee

Chair: Sarah Tsoflias, Chevron Co-Chair: Nick Owens, Anadarko

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Activities • Draft Environmental Impact Statement (EIS) for

Flower Garden Banks National Marine Sanctuary (FGBNMS) Expansion

• Draft Programmatic EIS for GoM Geological & Geophysical Activities

• Explosive Removal of Offshore Structures (EROS) Rulemaking

• Deep-water Corals • LA Special Artificial Reef Sites (SARS)

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Draft EIS for FGBNMS Expansion • 7 June 2016: DEIS released for public review &

comment – NOAA’s preferred Alternative 3 includes several

additional areas (greater than SAC/BEWG recommendation)

• 19 August 2016: OOC joined with other trades (API, IADC, IAGC, IPAA, NOIA) in submitting comments – expressed support for Alternative 1 – No Action – NOAA has not provided adequate analysis to

justify an expansion beyond the SAC recommendation

– proposed expansion areas do not meet NMSA requirements that sanctuary areas be “of special national significance” or “unique”

• Next Step: Final EIS published – timing – June 2017

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Draft EIS for FGBNMS Expansion

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Map courtesy of Ruth Perry, Shell

Draft PEIS GoM G&G Activities • 30 Sept 2016: DPEIS released for public

review & comment • 29 Nov 2016: OOC joined with other trades

(API, IAGC, & NOIA) in submitting extensive comments – expressed support for Alternative A – the other alternatives include overly

restrictive mitigation measures which do not demonstrate meaningful reduction of impact to marine mammals

– DPEIS relies on “worst case” analysis and a series of conservatively biased assumptions, resulting in grossly overestimated impacts

• Next Steps: Final PEIS published – timing – September 2017

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Draft PEIS GoM G&G Activities Proposed Mitigation Measures

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Map courtesy of Ruth Perry, Shell

Status of EROS Rulemaking

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• Oct 2016: Center for Independent Experts (CIE) review of the Underwater Calculator (UWC) completed – 3 reports; 1 report from each external reviewer – BSEE reviewing reports; determining next steps

• DOI Solicitor’s Office has determined an EIS will be required as the NEPA document to support new MMPA ITA for use of explosives for GoM OCS decommissioning activities - BOEM responsible for preparing EIS; no substantial progress

• Next Steps: prepare Draft EIS; prepare & submit MMPA ITA application – Timing??

Deep-water Corals • Oct 2016: Gulf of Mexico Fishery Management Council

Meeting – Joint Coral / Habitat Committee reviewed a scoping

document, “Recommended coral areas identified as priority habitats for management consideration in the Gulf of Mexico” (refer to next slides for priority areas)

– Reef Fish AP recommended all proposed HAPCs in GoM OCS have no fishing regulations

• At request of Council, revised scoping document to be presented at January 2017 Council meeting

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Deep-water Corals Recommended HAPCs – Priority Areas

No Fishing Regulations

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LA Special Artificial Reef Sites • LA Dept. of Wildlife & Fisheries proposal to lift 8-year

moratorium on creating new SARS – 11 Oct 2016: OOC met w/ LDWF via WebEx to discuss

proposal – 20 Oct 2016: OOC and LMOGA submitted a joint letter to

LDWF in support of lifting the moratorium on new SARS • develop a consistent, documented definition of “trawlable

bottom” to eliminate uncertainty • develop a consistent process for determining areas for removal

from the existing reef planning areas

• Next Steps: LDWF plans to present proposal to Artificial Reef Council (ARC) by year end

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RECOGNITIONS

Subcommittee Chair Name Company

Steve Bodden – Executive Subcommittee Chair Stone Energy

Elizabeth Komiskey – Executive Subcommittee Vice Chair BP

Eva Gravouilla – Executive Subcommittee Secretary / Treasurer Stone Energy

*Steve Hamm – Water Quality / Environmental Waste Latitudes Environmental

Marsha Dupont – Water Quality / Environmental Waste Environmental Enterprise

*Scherie Douglas – Drilling Subcommittee Douglas Regulatory Solutions

Bill Dehart – Drilling Subcommittee Stone Energy

*Joe Smith – Environmental Sciences Subcommittee ExxonMobil (retired)

*Richard Krebs – Pipeline Subcommittee Shell Pipeline

Michael Butler – Pipeline Subcommittee ExxonMobil

Chris Woodle – Marine Safety & Security Chevron

Steve Velzis – Marine Safety & Security BP

Craig Mullet – Platform Subcommittee LLOG

Steve Frantz – Platform Subcommittee Talos

David Helminiak – SEMS Subcommittee EnVen

Jason Sullivan – SEMS Subcommittee Stone Energy

Sandi Fury – Technical / Deepwater Chevron

Bill Terrebonne – Technical / Deepwater Shell

Marla Begnaud – Air Quality Subcommittee Fieldwood

Sara Carlson – Air Quality Subcommittee Anadarko

John Cyr – Legal Subcommittee BP

J.T. Nesser – Legal Subcommittee Shell

Sarah Tsoflias – Restricted Areas / Fisheries Chevron

Nick Owens – Restricted Areas / Fisheries Anadarko

Metering & Measurement Workshop Planning Team

Name Company

Chad Simonton Shell

Bill Terrebonne Shell

Douglas Guay Shell

Wally Boudreaux Shell

Joby Lacombe Fieldwood

Lennie Zeringue Fieldwood

Jacob Woodard SGS

LJ Tabor Chevron

Shane Futch Shell

David Duplantis Williams

SEMS Forum Planning Group Name Company

Ernie Thibodeaux Ankor

Tim Westerman Ankor

Laurie Knape Apache

Wade Broussard Arena

Charlie Duhon Arena

John Cannon Chevron

Nolan Weaver Chevron

David Dykes Chevron

Troy Roberie EnVen

David Helminiak EnVen

Tery Trahan Fieldwood

Katherine Gamble Renaissance

Patrick Eiland Stone

Jason Sullivan Stone

Steve Frantz Talos

Bryan Mack Wood Group

John Cothern Wood Group

BOEM Proposed Air Rule Comment Group

Name Company

Meghan Gallinaro Chevron

Mandie Bosch Chevron

Sarah Tsoflias Chevron

Connie Goers Arena

Foster Wade Statoil

Joshua O'Brien Individual Member

Donna Giles BP

Jim Nolan BP

Sara Carlson Anadarko

Jeff McMenis Shell

Kenyatta Miles Shell

Brian Boyer BT Gap

Marla Begnaud Fieldwood

Valerie Greeve W&T Offshore

Poh Boon Ung BP

Rahul Pendse Trinity Consultants

David Broussard Fieldwood

Amber Tierce Chevron

Shallow Water Source Control Working Group

Name Company

Dan Lauer Apache

Steve Daigle Apache

Connie Goers Arena

Mike McCauley Arena

Kalil Ackal Arena

Jack Shelledy Fieldwood

John Garber Freeport-McMoran

Dan Eby Sierra Hamilton

Craig Brazan Stone

Ralph Moras Stone

Will Pecue Taylor Energy

Ray Smith Walter Oil

Joseph Savoy Wild Well Control

Chuck Ware Talos

Steve Heitzman Talos

Mike Partin Talos

Jon Garrett EnVen

Steve Goff Ankor

Maxwell Grove Apache

EPA Region 4 NPDES Permit Comments

Name Company

Rob Kuehn Shell (retired)

Mandie Bosch Chevron

Jim Floyd Chevron

Shelby Pennington ExxonMobil

Marsha Dupont Environmental Enterprises

Marsha Lutz JCC

Travis Etheredge Murphy

Sofia Lamon Anadarko

Joe Smith ExxonMobil (retired)

Joanna Spires Individual Member

Offshore Lifting Data Analysis Team

Name Company

Allen Verret OOC (retired)

JR Guidry Sparrows

Bob Watson ABCrane Safety

David Landry Fieldwood

Fred Klein Seatrax

Production Data Integrity Management Working Group

Name Company

Stella Alvarado Anadarko

Tad Little Fieldwood

Williamson Turner BP

Lennie Zeringue Fieldwood

Larry LaPoint Anadarko

Joby Lacombe Fieldwood

Greg Necaise Shell

Delia Molina Anadarko

Charles Marth BP

Chad Simonton Shell

Carl Carline W&T Offshore

Brandon Buquet FMI

Amy Gilman Fieldwood

Dave Curtis Anadarko

Continued Service Forum Planning Committee

Name Company

Greg Kusinski Chevron

Miland Prabhu Chevron

Jim Stear Chevron

Craig Mullett LLOG

Satish Balasubramanian ExxonMobil

Jack Kenney Shell

Stephen Hodges Shell

PI 2L-2 Comment Development Group

Name Company

LT Cooper EDG

Craig Mullett LLOG

Financial Assurance Forum Planning Group

Name Company

Susan Hathcock Anadarko Connie Goers Arena Keith Godwin Arena David Peterson BP Janet Aceves BP Sandi Fury Chevron Lynne L. Hackedorn Cobalt International Andy Harmon ConocoPhillips Benda Montalvo Eni Bryan Chapman ExxonMobil Kevin Bruce Fieldwood James Bassi LLOG Wendy Kirchoff Noble Energy Aubin Buquet PetroQuest Christie Webb Repsol Foster Wade Statoil Pransanth Chilukuri Talos Joseph Savoy Wild Well Control Brandon Towle Williams Shane Meyer Murphy Kim Kaal Shell James M. Auslander Beveridge & Diamond PC Jonathan K. Waldron Blank Rome LLP Bob Thibault Haynes and Boone LLP Robert M. Clemons Seacor Marine Larry Pechacek Vinson and Elkins Keith Couvillion Chevron

National Academies of Science Safety Culture Panel

Name Company

Charles Dudek Murphy

Patrick Eiland Stone

Katherine Gamble Renaissance

Steve Frantz Talos

Jason Sullivan Stone

Registration Assistance

• Ann Drewry, EnVen • LSU Society of Petroleum Engineers

– John Nunn – Ahmed Abedali

Secretary / Treasurer’s Report

Eva Gravouilla, Stone Energy

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OOC Bank Accounts

Reporting Period from January 1, 2016 – December 5, 2016 Operating Account: Total Balance on January 1, 2016: $869,294.75 Total Balance on December 5, 2016: $709,001.72 Savings Account (Rainy day funds):

Total Balance on January 1, 2016: $291,759.20 Total Balance on November 1, 2016: $291,786.29

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OOC Bank Accounts

Reporting Period from January 1, 2016 – December 5, 2016 CWIS Account: Total Balance on January 1, 2016: $95,917.54 Total Balance on December 5, 2016: $95,917.54 NPDES Account: Total Balance on January 1, 2016: $185,125.98 Total Balance on December 5, 2016: $121, 509.33

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Director’s Report

Greg Southworth, Associate Director

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2016 YEAR IN REVIEW

2016 Major Milestones OOC & NOIA MOU

OOC & Deepstar Partnership

Shallow Water Source Control Resources Database

HAZID Tool & Training Module

Completed Cooling Water Impact Study JIP

Significant Activity 2016

OOC Subcommittee Issue/Project J F M A M J J A S O N D

Executive Shallow Water SC

Financial Assurance

Technical Well Control Rule

Subpart H

Royalty Reporting

Metering/Measurement

Surface Commingling

Cyber Security

Decommissioning

Safe Lifting

Hyd Stimulation/P-DPEA



Platform API 2L-2

Pipeline Sand/Sediment Resources

P/L Abandonment

BSEE P/L Decom Rule

Marine Safety Well Intervention Risk

USCG Risk Based Inspect

D8 Lifeboat Policy

eGov eGov Workshops

SEMS HAZID Tool & Training



Air Quality BOEM Air Rule

Water & Waste EPA Region 4 NPDES Permit

EPA Region 6 NPDES Permit

Potable H2O Position Paper

Marine Trash/Debris Video

Restricted Areas FGBNMS DEIS

BOEM G&G DPEIS

LDWF SARS

The number of pages of comments submitted in 2016

The number of external conference presentations in 2016

NOSAC

The number of people who have taken the OOC HAZID Training

The number of attendees at OOC Forums in 2016

Forums

READY FOR 2017

Feedback From Members

75% of respondents said they get Significant or Good Value from OOC

Forums, Workshops, General Meetings, Communications considered effective

OOC should strive to be coordinating force for industry-agency-academic coordination

Keep Moving Forward in 2017

• Maintain strong, active subcommittees

• Continue effective General Meetings, Industry Days & Agency engagements

Continue Effective Activities

• Help OOC rapidly respond with input on strategy

• OOC Member companies can nominate board members

• Members have full P&L responsibility for GoM

Executive Leadership Board

• SEMS • 2 Environmental

Forums: • Air • NPDES

2017 Forums

• General regulatory update

• Held after quarterly BSEE, BOEM, USCG engagements

• Review “Issue Spot” items from the OOC website

• Webinar format

Quarterly Town Halls

Issue Spot Form

• Anonymous way to raise issues/problems.

• What do you need help with? • Where can OOC help?

www.theooc.us Click “News” Click “Issue Spot Form”

http://www.theooc.us/

Preparing for Our 70th

• 2018 will mark the 70th Anniversary of the OOC

• We Need Your Help with Putting Together Our History…

Our History

OOC is a great organization because of each of YOU

BOEM REGULATORY IMPLEMENTATION UPDATE – MIKE CELATA

Bureau of Ocean Energy Management

Mike Celata Regional Director

Gulf of Mexico Region

December 7, 2016

Offshore Energy and Marine Minerals Gulf of Mexico

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Topics

• OCS Lands Act • Gulf as Petroleum Basin • Air Quality Regulation • NTL 2016-N01 • Wind Energy Potential

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Outer Continental Shelf Lands Act

“(T)he outer Continental Shelf is a vital national resource reserve held by the Federal Government for the public, which should be made available for expeditious and orderly development, subject to environmental safeguards, in a manner which is consistent with the maintenance of competition and other national needs”

Outer Continental Shelf Lands Act Sec 3(3)

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The Gulf of Mexico is a proven petroleum basin that still offers significant opportunities

for exploration and development.

Conventional Energy

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Comparison of Annual Production Volumes from

Deep and Shallow Water

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Gulf of Mexico Highlights

Source: U.S. Energy Information Administration, Short-Term Energy Outlook, February 2016

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http://www.eia.gov/forecasts/steo/



Shallow Water vs. Deepwater

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Perdido

Lucius Jack

St. Malo

Cascade Chinook

Independence Hub

Platform and Pipeline Infrastructure

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Of this Gulf production, wells in deepwater produced 82 percent of the oil and 54 percent of the natural gas.

Of both onshore and offshore domestic production in 2014, the Gulf supplied the Nation with 16 percent of the total oil and 4.5 percent

of the total gas.

It is the primary offshore source of hydrocarbons for the United States, generating approximately 97 percent of all offshore oil and

natural gas production.

The Gulf of Mexico is one of the world’s prolific hydrocarbon basins, with a production history of more than 100 years.

The United States Depends on the Gulf of Mexico

120

• Background – – Current 30 CFR Part 550, Subparts B and C were written by

USGS in the early 1980s – Changing technology and improved understanding of air quality

warrant updated guidance for reporting emissions • Purpose – To revise 30 CFR part 550 subparts B and C

– To create regulations applicable to all areas under BOEM’s jurisdiction, including the Chukchi and Beaufort Seas in Alaska

– To update terminology, standards, and sources – Important Changes to Emission Exemption Thresholds (EETs)

• EETs to be evaluated using distance to State Seaward Boundary • New EETs will consider shorter pollutant averaging periods

• Status – − Publish December 2016; Effective March 2017.

• Coordination – USEPA, FWS, BSEE

121

Air Quality Rule Update

• NTL Issue Date & General Notification Letter – July 2016 • NTL Effective Date - September 2016 • Self-Insurance Letter due September 2016 • Proposal Letter due October 2016 • Order Letter due November 2016 - Within 10 calendar days of the

order, written notification needs to be provided to BOEM if a company wishes to submit a tailored plan

• Within 60 calendar days of the order additional security must be provided for Sole Liability

• Within 120 calendar days of the order, additional security must be provided for the remaining properties and/or submit a tailored financial plan.

• Tailored Plan Approval or Denial, September 2017

https://www.boem.gov/Financial-Discussion/

122

NTL 2016-N01 Implementation Timeline

Self Insurance • Sixty-six Evaluations were performed • Letters were mailed in September and November 2016 • Self Insurance was granted to 20 lessees that totaled

$5.197B which can be used to cover liabilities • Self insurance ranged from 1-9% • Received 43 self insurance inquiries with 36 resolved

– Requests included clarification of ratio calculations, credit ratings and compliance criteria

• Nine out of the 20 have provided their self insurance allocations

• Meetings have been held with 9 companies

123

Self Insurance to Date

• 232 Letters were mailed in October 2016 • Received 35 disputes – 3 have been resolved

and we are actively working on the remainder. – Disputes include BSEE assessments, ownership,

ROW/ RUE and sole liability classification

124

Proposal Letter

• Order letters to be sent in November 2016 based on original timeline

• Industry has requested to delay implementation • Order for sole liabilities will be sent soon • Delay order for non-sole properties

– 3rd Party Guarantee Criteria final approval – Decisions on 3rd Party Guarantee

125

Order Letters

• Credit for a Decommissioning Trust Agreement (DTA) with a strong predecessor – The DTA is designed to address the decommissioning liabilities

for these properties – Specific properties to be decommissioned are identified and

scheduled as a requirement of the DTA – Access to funds by predecessor is provided if those funds are

needed to undertake decommissioning activities in the event of lessee default

• The DTA provides protective measures such as an advanced notice of default to predecessor

• Letter of Credit serves as liquid security to fund decommissioning costs

126

Proposed Solutions Under Consideration

• Credit for 3rd Party Securities (bonds) with predecessor – BOEM will verify that the securities are dedicated to cover decommissioning

costs in a default situation – The 3rd parties are jointly and severability liable for decommissioning of the

properties in associated with the bonds

• Deferral of financial assurance on producing properties based on their decline curve analysis and projected end of life

• Deferral of financial assurance on properties where actual decommissioning operations have commenced

• Funding for financial assurance over time based on BOEM’s risk categorization in the Risk Matrix

127

Proposed Solutions Under Consideration

Years of Production

Co-

Less

ee a

nd P

rede

cess

or S

treng

th p

er N

TL 5

Crit

eria

128

Co-Lessee and Co-Lessee and

Predecessor Co-Lessee and



Predecessor Predecessor Limited/No Reserves < 5 years Reserves 6-10 years Reserves > 10 years Reserves

Exp, Term, Relinq

Co-Lessee Only Co-Lessee Only Co-Lessee Only Co-Lessee Only Co-Lessee Exp, Term, Relinq Limited/No Reserves < 5 years Reserves 6-10 years Reserves > 10 years Reserves

Predecessor Only Predecessor Only Predecessor Only Predecessor Only Predecessor Only Exp, Term, Relinq Limited/No Reserves < 5years Reserves 6-10 years Reserves > 10 years Reserves

High Risk Co-Lessee or Predecessor



Co-Lessee or Predecessor

Co-Lessee or Predecessor

Exp, Term, Relinq Limited/No Reserves < 5 years Reserves 6-10 years Reserves > 10 years Reserves

Risk Matrix

Offshore 90-Meter Wind Maps and Wind Resource Potential

129

Deepwater Report http://www.boem.gov/Deepwater-Report-2014/

[email protected]

Thank You

Questions?

http://www.boem.gov/Deepwater-Report-2014/

• Termination of the Period of Liability ends the period during

which the obligations continue to accrue but does not relieve the Surety of obligations during the period of liability.

• Cancellation terminates the Period of Liability and relieves the

Surety of all obligations

OLP has significantly reduced the time it takes to process termination/cancellation requests. 30 CFR § 556.906 provides

BOEM 90 days to process a termination request, but we are now striving to complete the process within 37 days. In order to

meet this timeline, BOEM will need you to provide the appropriate information upfront.

131

Bond Release Processes

132

• Concurrence is requested within 30 days from the “committee” comprised of representatives from: – BSEE Decommissioning – ONRR – BSEE Civil Penalty Case Manager – BSEE Pipelines for ROWs – BOEM Plans for RUEs

If there are open issues with any party above, BOEM/BSEE/ONRR will deny your termination/cancellation request and OLP will notify you that your bond cannot be cancelled until the issues are resolved.

Why does it take so long?

• Once your request clears the committee or 30 days has passed, the Program Specialist mails a prepared letter to the principal and surety granting your termination/cancellation.

• Your termination/cancellation is updated in our system. • We have streamlined this process and working to

provide you better customer service. These improvements can continue if you ensure that complete, accurate information is provided with your requests.

133

What happens after committee clearance?

Common errors which delay your request or cause it to be returned to you by OLP: • If you know you owe back royalties or civil penalties or your

cancellation will leave an uncovered decommissioning balance, save us the time and please do not request the cancellation until you resolve the outstanding items.

• Make sure the person requesting the cancellation is an authorized officer listed on your company qualification card and signs exactly as listed.

• Make sure the collateral numbers and Lease/ROW/RUE

numbers are included and correct.

134

How can you help the process?

USCG – ADMIRAL CALLAHAN

OOC LEADERSHIP AWARD Admiral David Callahan

2016 General Meeting Sponsors

SUBCOMMITTEE REPORTS Marine Safety and Security, SEMS

Marine Safety & Security Subcommittee

Chair: Chris Woodle, Chevron Co-Chair: Steve Velzis, BP

Current Activities • Opportunities to provide input to CG:

– Risk-Based Inspection Scheduling – Lifesaving Inspection and Emergency Evacuation

Drill policy letter (signed Oct 31st) • Industry Day (Nov 1st) • CG released update of Marine Safety Manual,

Volume II (July). New/established guidance for “Quarters Habitable” and “Buy-Back Gas” processes

Other Activities

• Continue to work with team on Well Intervention Risk Framework

• National Offshore Safety Advisory Committee – Issued final report for the Task Statement

on Well Intervention Activities (Nov 2nd) • Common Marine Guidelines: should be

available on the OOC website by the New Year

Future CG rulemaking • CG Headquarters anticipates the Final Rule for

Marine Casualty Reporting on the OCS (USCG-2013-1057) may publish 1Q 2017. In summary, this aligns marine casualty reporting for everyone on the OCS with the 46 CFR Part 4 requirements.

• Nothing to report on Subchapter N…

SEMS Subcommittee

Chair: David Helminiak, EnVen Co-Chair: Jason Sullivan, Stone Energy

SEMS Tool Box

• HAZID Tool • HAZID Training • 2016 Forum Guidance Documents

– A & D – Liftboat / MODU – Decom – Loop / Unmanned Operations

HAZID Training Utilization

0

50

100

150

200

250

Feb Mar Apr May Jun Jul Aug Sept Oct Nov

Roll Out

SEMS Forum

EnVen Contractors

COS Forum

Committee Focus for 2017 • HAZID Tool Level II Training

– JSA / Workplan • Bridging Road Map • Audit Preparation (Effectiveness rather than compliance)

– In coordination with COS activities • Process Safety Review (BSEE report) • Safety Culture

– Documentation of challenges – Options to address challenges – Assessment

• OOC Offshore Personnel Engagement – HAZID Level II (Input to plan) – Feedback to Safety Culture

• 4Q SEMS Forum

2016 Safety Stats

• Anonymous collection by OOC (TRIR, lost time)

• You submit, you get stats • Annual program

2017 HAZID Video Contest

• $500 prizes (5) • iPhone 90 – 120 seconds • Submissions Feb-April - Publish May

SUBCOMMITTEE REPORTS Environmental, Air Quality, Water Quality & Waste

Environmental Subcommittee

Subcommittee Updates

• New Chairs • Co-Chair: Ray Aronld, Chevron • Co-Chair: Kenyatta Miles, Shell

Air Quality Subcommittee

Chair: Marla Begnaud, Fieldwood Energy Co-Chair: Sara Carlson, Anadarko

Current Activities

• BOEM’s Proposed Air Quality Control, Reporting, and Compliance Rule – June 20: Joint Trades (OOC, API, NOIA, IPAA, IADC, OMSA) comments were

issued to BOEM. – Joint Trades met with BOEM in Washington DC twice. – Rule has not been sent to OMB yet. BOEM hopes to publish final rule on

12/31/16 with effective date of March 2017.

Looking Forward

• GOADS 2017 – NTL No. 2016-N03 was issued on 11/1/16. – Very similar to GOADS 2014. Same emission sources. – Data collection begins 1/1/17 through 12/31/17. – Activity data submittal due to BOEM by 4/17/18.

• Air Studies – Initial phase of information from BOEM’s Air Modeling Study should

be available in January 2017. – Fugitive Emissions Study

Water Quality Subcommittee

Chair: Steve Hamm Co-Chair: Marsha Dupont, Environmental Enterprise

155

Current Activities

• Region 4 NPDES Permit Renewal – Submitted comments on draft permit – Waiting for EPA Response to Comments &

Publication of Final Permit – being delayed by challenges from environmental groups

– Most likely will not be reissued until March 2017

156

Current Activities

– Region 6 NPDES Permit Renewal • Met with R6 to discuss OOC’s comments on

EPA’s proposed changes • EPA requested written comments to R6 in 2

weeks • EPA determined to publish Draft Permit by

January

157

Current Activities

– Possible Region 6 NPDES Permit Changes • More frequent PW Toxicity testing • Removal of exemption for USCG approved MSDs • Toxicity testing on all Well Fluids (possible Industry

Wide Study) • Increased visual observation requirements • EPA working on a way to transfer coverage to re-

issued permit so we don’t have to re-file all NOIs.

158

Current Activities

• Drinking Water White Paper – Draft reviewed by the Technical Subcommittee

and the Executive Subcommittees & sent to EPA – Steve Hamm is working with David Gillepsie at EPA

to set up a meeting to discuss

159

Looking Forward

• Continue to work with EPA Region 6 on the upcoming GMG290000 permit renewal

• Wait for Region 4 to issue the Final Eastern GOM GEG460000 general permit

• Meet with EPA to discuss the Drinking Water white paper

160

Subcommittee Updates

• New Chair – Von Magee, Chevron

WASHINGTON UPDATE – RANDALL LUTHI

A View From Washington 2017 – A Year of Change noia.org

A View From Washington: 2017 – A Year of Change

Randall Luthi President,

National Ocean Industries Association


Nearly 300 Member Companies Including:


First… A Victory Lap?


US Energy Self Sufficiency

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Perc

ent

Ratio of Domestic Energy Production to Consumption 1949-2015


With More on the Way


Offshore Is a Vital Part of The Energy Puzzle Picture


There is Room to Grow


Outgoing Administration, Ongoing Challenges


Offshore Regulations

• Financial Assurance and Bonding NTL

• Air Quality Rule • Well Control Rule • Arctic Drilling Rule


Final 2017-2022 OCS Leasing Program


Trump Wins the White House


Senate Stays Republican


The Presidential Transition


Executive Options


Congressional Options

• What legislative options are there to rollback the Regulatory Fiat? • Appropriations

Legislation • Congressional Review

Act; and • Budget Reconciliation


The Future is Bright


Thank You!! @oceanindustries



DEEPSTAR – GREG KUSINSKI

DeepStar ® - Global Offshore Technology Development Consortium - © 2016 Chevron

DeepStar ® Global Offshore Technology Development Consortium

Greg Kusinski – DeepStar Director

DeepStar ® Global Offshore Technology Development Consortium

DeepStar® Update Operators’ Driven Program OOC General Meeting December 7th, 2016

182


THINKING ABOUT THE FUTURE

Vision and Focus to Achieve Success via Collaboration Fact: What is “normal today” was “impossible 10 years ago”

Belief: What is “impossible today” with be normal 10 years from now”

Vision and commitment to develop technology TODAY are essential to achieve success in the FUTURE

DeepStar Mission Improve profitability, execution, operability, flexibility, reliability and safety of deepwater production systems

• Early Technology Development

• Foster Collaborations

• Gain Acceptance

• Strive for new breakthroughs

183


DeepStar® Project Portfolio - 2016 20

,000

psi

12202 Gas hydrate formation under extreme conditions of high pressure and high salinity 12302 20Ksi Systems 12403 Ultra Deepwater 20 KSI Composite Tubular 12407 Testing of High Strength Connected Steel Riser 12501 20 Ksi Well Drilling System MODU Upgrade 12502 20 ksi HPHT Completion Design Considerations and Well Intervention Systems 12503 Standardized Materials Selection Basis of Design and Equipment Testing Criteria 12504 Real Time Monitoring for Critical Barriers 12505 Analysis of Current Technology and Capabilities for Shearing

LDTB

12201 Asphaltene Deposition and Fouling in Reservoirs 12204 Guidelines/Benchmarks for LDHI/AA Standardized Testing Protocols 12301 Pipeline Integrity Management Initiative 12902 SS Electrical Power Strategies and Roadmap 12903 Long Distance Subsea Tieback Configuration Study

Con

tinue

d Se

rvic

e 12401 Continuing Service Guidance for Ageing Floating Infrastructure

12402-A Integrity Management of Mooring Systems Against Corrosion

Big

Gas

12203 Wet gas multiphase flows,

sand-fines transport / erosion tests in 16" & 4" facility

EOR

12702 Catalytic In-situ CO2 Generation

12901 Subsea Systems for EOR

water injection - Phase 2 of DS 11901

12904 Environmental Strategy for Enabling Subsea Discharge

Expl

orat

ion,

ap

prai

sal

12001 Large hydrophone array for efficient deep water 3D VSP acquisition 12701-A Appraisal look-back; focused data mining 12801 Estimating Marine Growth in Deepwater 12802 Extra-Tropical/Winter Storm Design Wind Relationships 12803 Extended Deepwater Ocean Current Hindcast 12804 Improved Boundary Conditions for Deepwater Ocean Current Hindcast

Floa

ting

Syst

ems

Tech

.

12404 New generation approach for flexible riser modeling

12405 Steel lazy wave riser for harsh environment and high vessel

motion

• 20,000 psi • Long Distance Tie Backs • Continued Service • Exploration, Appraisal • Floating Systems Technology • Enhanced Oil Recovery

184


DeepStar ® 2017 Global Offshore Technology Development Consortium

DeepStar Current Model

29 DeepStar projects totaling $10,000,00

DeepStar OOC CORE + Satellite

CORE Membership Focus on collaborative project development and

immediate industry needs

Satellite Projects $500,000 to +$5M Interested parties equally contribute

185


OOC Strategic Plan

OOC Administration

Structure

Executive Subcommittee

12 OOC Technical

Subcommittees

OOC DeepStar Operations

Advisory Board

OOC DeepStar Regulatory &

Policy Advisory Board

DeepStar Governing

Board

Core Projects Satellite Projects

OOC DeepStar Engineering &

Sciences Advisory Board

SCIENTIFIC PROCESS, NO

ADVOCACY WITH

REGULATORS

TECHNICAL BASED

ADVOCACY & SUB-

COMMITTEE FOCUS

NOIA MOU:

Advocacy Partner

186


DeepStar® 2017 mission and goals

Improve profitability, execution, capability, operability, flexibility, reliability and safety of deepwater production systems to:

– Shorten the cycle form concept to technology/ solution deployment into major capital projects and operations

– Assure lower Development Cost – Enable and assure cost effective Continued Service of producing assets – Ensure correct technology availability at a correct business INTERCEPT time

Mission accomplished by: • Providing a forum and process for discussion, guidance and feedback • Examining capabilities of existing, but not used / deployed technologies • Enhancing existing offshore technologies • Investigating and framing the use of new technologies • Stimulating market place to deliver improvement to meet near term needs • Developing new enabling offshore technologies • Gain acceptance of technologies by regulators and industry

near

longer


Floating Systems MetOcean

SubSea

Drilling & Completions

Flow Assurance

DeepStar® 2017

DeepStar® Management Committee is supported by 4 Technical Committees

• Drilling, Completion and Intervention • Flow Assurance • Facilities -

• Subsea • Floating Systems + Met-Ocean

Supporting Committees: Operations Regulatory & Policy Subsurface (Geosciences + Reservoir) Engineering & Sciences

Adjourn

Thank you for coming

Cocktail Reception!