
[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39885-39886]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17112]



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DEPARTMENT OF HOMELAND SECURITY



Coast Guard



[Docket No. USCG-2011-0246]




Risk-Based Targeting of Foreign Flagged Mobile Offshore Drilling 

Units (MODUs)



AGENCY: Coast Guard, DHS.



ACTION: Notice of availability.



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SUMMARY: The Coast Guard announces the availability of Office of Vessel 

Activities Policy Letter 11-06, Risk-Based Targeting of Foreign Flagged 

Mobile Offshore Drilling Units (MODUs). This policy letter announces 

changes to the Coast Guard's system used to prioritize inspections of 

foreign-flagged MODUs.



DATES: This policy will become effective on July 7, 2011.



ADDRESSES: This notice and the policy are available in the docket and 

can be viewed by going to http://www.regulations.gov, inserting USCG-

2011-0246 in the ``Keyword'' box, and then clicking ``Search.'' This 

material is also available for inspection or copying at the Docket 

management Facility (M-30), U.S. Department of Transportation, West 

Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 

except Federal Holidays. This policy is also available at http://homeport.uscg.mil by clicking the ``Library'' tab > Policy > Policy 

letters (inspection); CG-543 Policy Letter 11-06.



FOR FURTHER INFORMATION CONTACT: If you have questions on this notice, 

call or e-mail LT. Rachelle N. Samuel, Foreign and Offshore Vessels 

Division (CG-5432), U.S. Coast Guard; telephone 202-372-2267, e-mail 

Rachelle.N.Samuel@uscg.mil. If you have questions on viewing or 

submitting material to the docket, call Renee V. Wright, Program 

Manager, Docket Operations, telephone 202-366-9826.



SUPPLEMENTARY INFORMATION:



Background and Purpose



    In order to ensure maritime safety and compliance with all 

applicable regulations, every foreign-flagged mobile offshore drilling 

unit (MODU) must undergo a Coast Guard Certificate of Compliance (COC) 

examination in order to operate on the U.S. Outer Continental Shelf 

(OCS). This certifies that the MODU complies with 33 CFR Part 143 and 

permits the MODU to conduct OCS activities. Upon a



[[Page 39886]]



satisfactory completion of the COC examination, the Coast Guard will 

issue the MODU a certificate valid for a period of 2 years. In 

addition, the Coast Guard will conduct a mid-period examination a year 

later to ensure the MODU remains in full compliance.

    Before the issuance of this policy letter, aside from this annual 

exam requirement, there was no process in place to identify a foreign-

flagged MODU that may require additional Coast Guard oversight while 

operating on the U.S. OCS (i.e. based on inspection history or other 

related factors). In response to April 2010 MACONDO 252 incident, the 

Coast Guard has taken steps to improve oversight of foreign-flagged 

MODUs.

    Office of Vessel Activities Policy Letter 11-06 addresses this 

issue by detailing inspection procedures using the newly developed MODU 

Safety and Environmental Protection Compliance Targeting Matrix. This 

targeting matrix will enable the Coast Guard to rationally and 

systematically determine the probable risk posed by foreign flagged 

MODUs operating on the U.S. OCS by identifying foreign-flagged MODUs 

that may require increased oversight.

    The matrix operates by recording five variables that the Coast 

Guard will use to determine whether a MODU should be subject to more 

frequent examinations to ensure compliance with safety regulations. If 

a MODU exhibits characteristics indicative of poor safety or 

environmental compliance, points are assigned for that variable. If a 

MODU accumulates a certain number of points, it is assigned 

``priority'' status and will be subject to more frequent inspections by 

the Coast Guard. These variables, which are described in detail in the 

policy advisory, include:

     Management: points will be assigned if the MODUs 

management company has a history of vessels detained in the U.S. in the 

previous 12 months.

     Flag: points will be assigned if the MODU's Flag 

Administration is a country with a higher than average rate of vessel 

detention.

     Classification Society/Recognized Organization: points 

will be assigned if MODU is certified by a Classification Society/

Recognized Organization that has a high safety detention ratio.

     Vessel History: points will be assigned for 1st time to 

U.S., no history of Coast Guard examinations, or history of operational 

controls, marine casualties or violations.

     MODU Particulars: points may be assigned based on certain 

characteristics of the MODU, such as propulsion, design (e.g. semi-

submersible, jack-up), or age.

    This policy letter also contains information collection procedures 

for Coast Guard personnel and documentation for use in examinations of 

foreign-flagged MODUs.

    Owners and operators of foreign flagged MODUs should review Policy 

Letter 11-06 and ensure their vessels are in compliance with the 

applicable regulations. MODUs that maintain their vessels consistently 

within the applicable regulations should not be subject to increased 

inspections.



    This notice is issued under the authority of 5 U.S.C. 552 (a), 

43 U.S.C. 1333(d), 43 U.S.C. 1348(c), and 14 U.S.C. 664.



    Dated: June 17, 2011

Kevin S. Cook,

Rear Admiral, U.S. Coast Guard, Director of Prevention Policy.

[FR Doc. 2011-17112 Filed 7-6-11; 8:45 am]

BILLING CODE 9110-04-P




