
[Federal Register Volume 77, Number 127 (Monday, July 2, 2012)]
[Rules and Regulations]
[Pages 39164-39169]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16116]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 147

[Docket No. USCG-2011-1143]
RIN 1625-AA00


Safety Zone; KULLUK, Outer Continental Shelf Mobile Offshore 
Drilling Unit (MODU), Beaufort Sea, AK

AGENCY: Coast Guard, DHS.

ACTION: Temporary final rule.

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SUMMARY: The Coast Guard is establishing a 500-meter safety zone in the 
navigable waters, from the surface to seabed, around the MODU KULLUK 
while anchored or deploying and recovering moorings on location in 
order to drill exploratory wells at various prospects located in the 
Beaufort Sea Outer Continental Shelf, Alaska, on or about July 1, 2012, 
through November 30, 2012. See TABLE 1. The purpose of the temporary 
safety zone is to protect the MODU from surface and subsurface vessels 
that are operating outside the normal shipping channels and fairways. 
Placing a safety zone around the MODU will significantly reduce the 
threat of allisions that could result in oil spills, and releases of 
natural gas, and thereby protect the safety of life, property, and the 
environment. Lawful demonstrations may be conducted outside of the 
safety zone.

DATES: The temporary safety zone becomes effective on July 1, 2012, and 
terminates on December 1, 2012, unless sooner terminated by the 
Commander, Seventeenth Coast Guard District.

ADDRESSES: Comments and material received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
are part of docket USCG-2011-1143 and are available online by going to 
http://www.regulations.gov, inserting USCG-2011-1143 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.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call or email LT Jason Smilie, Seventeenth Coast Guard District (dpi); 
telephone 907-463-2809, Jason.A.Smilie@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: 

Regulatory Information

    On February 23, 2012, the Coast Guard published a notice of 
proposed rulemaking (NPRM) entitled ``Safety Zone; KULLUK, Outer 
Continental Shelf Mobile Offshore Drilling Unit (MODU), Beaufort Sea, 
Alaska'' in the Federal Register (77 FR 10711). The NPRM included a 30-
day comment period. We received 2 (two) submissions with comments on 
the proposed rule. No public meeting was requested, and none was held.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause 
exists for making this rule effective less than 30 days after 
publication in the Federal Register. The Coast Guard finds that good 
cause exists for making this rule effective less than 30 days after 
publication because to do otherwise would be contrary to the public 
interest since immediate action is required to protect mariners, 
vessels, and the

[[Page 39165]]

environment from potential harm while the MODU KULLUK is anchored or 
deploying and recovering moorings on location.

Basis and Purpose

    The legal basis for the rule is 14 U.S.C. 85; 43 U.S.C. 1333; 
Department of Homeland Security Delegation No. 0170.1. Collectively 
they provide the authority for the Coast Guard to establish safety 
zones on the Outer Continental Shelf.
    The Coast Guard is establishing a temporary safety zone in the 
navigable waters, from the surface to seabed, around the MODU KULLUK 
while anchored or deploying and recovering moorings on location in 
order to drill exploratory wells in several prospects located in the 
Beaufort Sea during the 2012 drilling season.
    The request for the temporary safety zone was made by Shell 
Exploration & Production Company due to safety concerns for both the 
personnel aboard the KULLUK and the environment. Shell Exploration & 
Production Company indicated that it is highly likely that any allision 
or inability to identify, monitor or mitigate any risks or threats, 
including ice-related hazards that might be encountered, could result 
in a catastrophic event. Incursions into the safety zone by unapproved 
vessels, including subsurface vessels such as submersibles, could 
degrade the ability to monitor and mitigate such risks. In evaluating 
this request, the Coast Guard explored relevant safety factors and 
considered several criteria, including but not limited to: (1) The 
level of shipping activity around the operation; (2) safety concerns 
for personnel aboard the vessel; (3) concerns for the environment given 
the sensitivity of the environmental and subsistence importance to the 
indigenous population; (4) the lack of any established shipping 
fairways, fueling and supply storage/operations, and size of the crew 
increase the likelihood that an allision could result in a catastrophic 
event; (5) the recent and potential future maritime traffic in the 
vicinity of the areas; (6) the types of vessels navigating in the 
vicinity of the area; (7) the structural configuration of the vessel, 
and (8) the need to allow for lawful demonstrations without endangering 
the safe operation of the KULLUK. Navigation in the vicinity of the 
safety zone could consist of large commercial shipping vessels, fishing 
vessels, cruise ships, tugs with tows and the occasional recreational 
vessel. For any group or individual intending to conduct lawful 
demonstrations in the vicinity of the KULLUK, these demonstrations must 
be conducted outside the safety zone.
    Results from a thorough and comprehensive examination of the 
criteria, IMO guidelines, and existing regulations warrant the 
establishment of the temporary safety zone. The regulation will 
significantly reduce the threat of allisions that could result in oil 
spills and releases. Furthermore, the regulation will increase the 
safety of life, property, and the environment in the Beaufort Sea by 
prohibiting entry into the zone unless specifically authorized by the 
Commander, Seventeenth Coast Guard District, or a designated 
representative. Due to the remote location and the need to protect the 
environment, the Coast Guard may use criminal sanctions to enforce the 
safety zone as appropriate.
    The temporary safety zone will be around the KULLUK while anchored 
or deploying and recovering moorings on location in order to drill 
exploratory wells in various locations in the Beaufort Sea Outer 
Continental Shelf, Alaska, during the 2012 timeframe.
    Shell Exploration & Production Company has four proposed drill 
sites within the Suvulliq and Torpedo prospects, Beaufort Sea, Alaska 
(See Table 1).

                                                               Table 1--Prospect Locations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               NR06-04 Flaxman        Surface location (NAD 83)*          Distance to
                 Drill site                           Lease file No.             Island lease   --------------------------------------   mainland shore
                                                                                  block No.         Latitude (N)      Longitude (W)         mi (km)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sivulliq G..................................  OCS-Y 1805....................               6658  70[deg]23'46.82''  146[deg]01'03.46'        16.6 (26.7)
                                                                                                                                    '
Sivulliq N..................................  OCS-Y 1805....................               6658  70[deg]23'29.58''  145[deg]58'52.53'        16.2 (26.1)
                                                                                                                                    '
Torpedo H...................................  OCS-Y 1941....................               6610  70[deg]27'01.62''  145[deg]49'32.07'        20.8 (33.5)
                                                                                                                                    '
Torpedo J...................................  OCS-Y 1936....................               6559  70[deg]28'56.94''  145[deg]53'47.15'        23.1 (37.2)
                                                                                                                                    '
--------------------------------------------------------------------------------------------------------------------------------------------------------

    During the 2012 timeframe, Shell Exploration & Production Company 
has proposed drilling up to two exploration wells at the identified 
Beaufort Sea prospects depending on favorable ice conditions, weather, 
sea state, and any other pertinent factors. Each of these drill sites 
will be permitted for drilling in 2012 to allow for operational 
flexibility in the event sea ice conditions prevent access to one of 
the locations. The number of actual wells that will be drilled will 
depend on ice conditions and the length of time available for the 2012 
drilling season. The predicted ``average'' drilling season, constrained 
by prevailing ice conditions and regulatory restrictions, is long 
enough for two to three typical exploration wells to be drilled.
    The actual order of drilling activities will be controlled by an 
interplay between actual ice conditions immediately prior to movement 
of the KULLUK, ice forecasts, any regulatory restrictions with respect 
to the dates of allowed operating windows, whether the planned drilling 
activity involves only drilling the shallow non-objective section or 
penetrating potential hydrocarbon zones, the availability of permitted 
sites having approved shallow hazards clearance, the anticipated 
duration of each contemplated drilling activity, the results of 
preceding wells and Marine Mammal Monitoring and Mitigation plan 
requirements.
    The planned exploration drilling in the identified lease blocks 
will be conducted with the KULLUK. The KULLUK is a true Mobile Offshore 
Drilling Unit, and is a large self-contained drilling vessel that 
offers full accommodations for up to 108 persons. The hull has been 
reinforced for ice resistance.
    The KULLUK has a ``persons on board'' capacity of 108, and it is 
expected to be at capacity for most of its operating period. The 
KULLUK's personnel will include its crew, as well as Shell employees, 
third party contractors, Alaska Native Marine Mammal Observers and 
possibly Bureau of Ocean Energy Management, Regulation and Enforcement 
(BOEMRE) personnel.
    While conducting exploration drilling operations, the KULLUK will 
be anchored. The KULLUK has an Arctic Class IV hull design, is capable 
of drilling in up to 600 feet (ft) [182.9 meters (m)]) of water and is 
moored using a 12-point anchor system. The KULLUK's mooring system 
consists of

[[Page 39166]]

12 Hepburn winches located on the outboard side of the main deck, 
Anchor wires lead off the bottom of each winch drum inboard for 
approximately 55 ft (16.8 m). The wire is then redirected by a sheave, 
down through a hawse pipe to an underwater, ice protected, swivel 
fairlead. The wire travels from the fairlead directly under the hull to 
the anchor system on the seafloor. The KULLUK will have an anchor 
radius of 3,117 ft (950 m) for the Sivulliq drill sites and 2,995 ft 
(913 m) for the Torpedo drill sites. Anchor marker buoys will delineate 
the outer edge of the anchor spread. The anchor spread, which radiates 
from the center of the KULLUK, may pose a fouling hazard to any vessel 
attempting to anchor within the anchor spread. Fouling of the KULLUK 
anchor lines may endanger the MODU, its 108 persons onboard, the third 
party vessel, persons onboard the third party vessel and the 
environment.
    The center point of the KULLUK will be positioned within the 
prospect location in the Beaufort Sea at the coordinates listed below 
(See Table 1).
    The KULLUK will transit through the Bering Strait on or about July 
1, 2012, and onto a prospect location when ice allows. Drilling will be 
curtailed on or before October 31, 2012. The MODU and support vessels 
will depart the Beaufort Sea at the conclusion of the 2012 drilling 
season.

Discussion of Comments and Changes

    Two submissions with comments on the proposed rule were received. 
No public meeting was requested, and none was held.
    One comment was received suggesting that the safety zone be issued 
for a multi-year period similar to safety zones in the Gulf of Mexico. 
The Coast Guard disagrees. While the Coast Guard understands that the 
underlying justifications for the safety zone are not likely to change 
from year to year, we find that there are several operational and 
permitting variables with respect to these activities to support not 
continuing the safety zones period beyond the current 2012 drilling 
season as originally requested. Many of these variables would be 
considered substantive changes. Some of the factors that dictate a 
season by season publication of the safety zone include the possibility 
that a different vessel will be utilized for the exploratory wells; 
changes in the published prospect/drilling locations and corresponding 
latitude/longitude coordinates; significant changes in any approved 
future Outer Continental Shelf Lease Exploration Plans, and the limited 
timeframe each year (approximately 4 to 5 months) associated with 
actual on site activity. The nature of this activity as noted above is 
not comparable to the ``manned production facility'' operations in the 
Gulf of Mexico in that those safety zones are established for year-
round operations on permanent structures that are engaged in the 
exploration and production of sub-sea resources. The Coast Guard will 
reconsider the temporary nature of these safety zones should the nature 
of the operations significantly change from solely seasonal exploratory 
drilling operations.
    One comment asked for a clarification with regard to the 
probability of a catastrophic event resulting from an incident. The 
Coast Guard agrees and has amended the ``Basis and Purpose'' section of 
the Final Rule by changing the word ``would'' to ``could'' as it 
relates to the outcome of an ``allision or inability to identify, 
monitor or mitigate ice-related hazards that might be encountered.''
    One comment requested flexibility with respect to the effective 
dates of the temporary safety zone to allow for certain non-drilling 
demobilization activities. The Coast Guard understands the nature of 
the post-drilling activity and agrees that the safety zone effective 
period should be extended to provide that needed flexibility through 
November 30, 2012, but only while the vessel is on location as listed 
in Table 1 of the rule. The purpose of this change is to ensure the 
rule remains effective while the KULLUK completes demobilization 
activities on location, thereby enhancing the safety of the personnel 
aboard the OCS facility and the environment. The Coast Guard has 
amended the final rule to reflect the new effective termination date of 
December 1, 2012, so long as the vessel is on location and engaged in 
exploratory drilling demobilization activities until this date.
    One comment requested flexibility with respect to dates the 
drilling rigs will be engaged in exploratory drilling, noting that the 
commencement of drilling activities may not be on July 1, 2012. The 
Coast Guard agrees and is amending language in the preamble relating to 
the commencement of drilling activity to be ``on or about'' July 1, 
2012.
    One comment requested the rule be amended to have the safety zone 
in effect once the vessel is ``on location'' while the mooring system 
is being deployed or recovered not only when the vessel is anchored. 
The Coast Guard agrees. The safety factors that were evaluated in 
determining that a safety zone was warranted while the vessel was 
anchored on location are substantially similar for when the vessel is 
on location and the mooring system is in the process of being deployed 
or recovered. The Coast Guard has amended Sec.  147.T17-1143 to read: 
``The navigable waters, from the surface to seabed, within 500 meters 
(1,640.4 feet) from each point on the outer edge of the vessel, while 
anchored or deploying and recovering moorings on location, is a safety 
zone.''
    Two comments recommended an extension of the outer boundaries of 
the safety zone to include the anchor chain extending from the OCS 
facilities; one comment recommended an extension to 1,500 meters from 
the vessel, the other recommended the zone extend to 50 meters beyond 
the anchor marker buoys of the mobile drilling vessel. The safety zone 
extends the maximum distance permitted as per 33 CFR 147.15, which 
establishes the limits of a safety zone at a distance of ``500 meters 
around the OCS facility.'' Further, the determination that the outer 
edge of the OCS facility is marked by the physical structure of the 
MODU not to include any area encompassed by the anchor spread is 
consistent with other safety zones established for other similar OCS 
facilities operating on the Outer Continental Shelf, which is a 500 
meter enforcement radius from the outer edge of the OCS facility 
structure.
    One comment stated the safety zone should be a moving safety zone 
and that it should be extended to all support and tow vessels involved 
in the operation and referenced previous safety zones established by 
the Coast Guard as precedent. The safety zones referenced by the 
commenter were established under the Ports and Waterways Safety Act 
(PWSA) (33 U.S.C. 1226(b)), under which the Coast Guard agrees it has 
the authority to establish moving safety zones for any vessel operating 
within the U.S. territorial seas. The safety zone encompasses areas 
outside of the U.S. territorial seas and extends to the maximum extent 
permitted by 33 CFR 147.10 which provides a maximum enforcement area of 
500 meters from the OCS facility. 33 CFR 147 does not permit 
establishment of safety zones for non-OCS facilities. With respect to 
moving safety zones, safety zones may only be enforced while the OCS 
facility is being constructed, maintained, or operated on the Outer 
Continental Shelf. The Coast Guard, in conjunction with the Department 
of State, has determined that this definition does not include times 
where the OCS facility is in transit and not directly engaged in 
activity related to the exploration or extraction of mineral resources. 
Accordingly, the

[[Page 39167]]

safety zone cannot be implemented or enforced during times where the 
OCS facility is transiting through the Exclusive Economic Zone (EEZ). 
With respect to vessel movements within the U.S. territorial seas, the 
Coast Guard is establishing separate moving safety zones under the PWSA 
through a separate rulemaking process which will include safety zones 
for support and tow vessels in addition to OCS facilities during 
periods of transit within the 12 nautical mile territorial sea in the 
vicinity of Dutch Harbor, Alaska.
    One comment requested specific language granting State and Local 
officer's enforcement authority under 46 U.S.C. 70118, similar to 
safety zones established by the Coast Guard for the Columbia and Snake 
Rivers. Title 46 U.S.C. 70118 provides authority for state or local law 
enforcement officers to make arrests for safety zones established under 
the PWSA or Deepwater Port Act of 1974 (DPA) (33 U.S.C. 1509(d)). The 
PWSA does not apply for safety zones established outside of the 
territorial seas of the United States, and the DPA does not apply to 
the MODU to which the safety zone applies. The authority to implement 
this particular safety zone is based upon the Outer Continental Shelf 
Lands Act and 33 C.F.R 147. Accordingly, State and Local law 
enforcement officers do not have the authority to take law enforcement 
action due to the location of the safety zone.
    One comment stated that the safety zone is overbroad and 
unnecessarily restricts first amendment rights. We disagree. The safety 
zones were created to facilitate safe navigation and promote the 
conduct of safe operations for entities engaging in lawful activities. 
However, actions taken which may potentially endanger or threaten 
either the individuals operating within this zone or the OCS facility 
within this zone will be subject to law enforcement action. There are 
no prohibitions on persons exercising free speech; however, actions 
that endanger persons or property within the safety zone are 
prohibited. Unauthorized vessels operating within this safety zone 
create an unnecessary risk to all vessels within the zone, including 
themselves. The Coast Guard determined this to be the best course of 
action given the complexities in the Arctic, which includes ice 
management issues, Marine Mammal Monitoring and Mitigation plan 
requirements, the lack of infrastructure in the Arctic, and a harsh, 
dynamic offshore environment. These complexities dictate reducing 
unnecessary risks associated with vessels not engaged in natural 
resource extraction activities operating near the KULLUK in order to 
significantly reduce the threat of allisions and oil spills, and at the 
same time increase the safety of life, property, and the environment in 
the Beaufort Sea. The Coast Guard believes that the 500-meter safety 
zone is ideal because it still provides sufficient area for persons to 
peacefully assemble or engage in legitimate protest activities outside 
of the safety zone.
    One comment opined that the Coast Guard should be required to 
prepare an Environmental Assessment (EA) and Environmental Impact 
Statement (EIS) under NEPA. While safety zones are typically 
categorically excluded from NEPA analysis, the Coast Guard anticipates 
that it will have more assets operating in the Arctic than normal due 
to increased vessel traffic in the Arctic. Consequently, the Coast 
Guard has undertaken an EA to determine the environmental impacts of 
its operations in the Arctic during the summer of 2012, and the 
enforcement of the subject safety zone has been included for 
consideration of cumulative impacts.
    One comment pointed out that a preliminary environmental analysis 
checklist and categorical exclusion determination were stated to be 
available in the online record, but was not available. A preliminary 
determination was not completed. The Coast Guard is not required to 
provide a preliminary environmental analysis checklist and categorical 
exclusion determination for a temporary safety zone until publication 
of the Final Rule. The reasoning is that safety zones are generally 
categorically excluded, and the Coast Guard wanted to review all public 
comments before completing the environmental analysis checklist and 
categorical exclusion determination in order to ensure that it 
accounted for all concerns. The environmental analysis checklist and 
categorical exclusion determination for this temporary safety zone is 
available in the docket, and can be obtained online following the 
direction provided in the ADDRESSES section above.
    One comment stated that the safety zone will cause increased air 
pollution because the air permits issued for the KULLUK exclude air 
within the safety zones, and, therefore, the Coast Guard must undertake 
a ``NEPA analysis'' to determine the affects of any air emissions 
within the safety zone. The Coast Guard does not have the authority or 
agency expertise to issue air permits, and, therefore, does not have 
the authority to determine whether the issuance of those permits is 
appropriate. The safety zone is being implemented to enhance the safety 
of vessel operations during a period of increased vessel traffic at 
locations where any marine casualty will present unique challenges due 
to the remote locations, lack of infrastructure and unforgiving 
environmental variables.
    One comment supported the determination to prohibit all vessels, 
irrespective of size from the safety zone. The Coast Guard determined 
this to be the best course of action given the complexities of this 
Arctic operation, which includes ice management issues, Marine Mammal 
and Mitigation plan requirements, and a harsh, dynamic offshore 
environment. The safety zones will significantly reduce the threat of 
allisions and oil spills, and at the same time increase the safety of 
life, property, and the environment in the Beaufort Sea.
    A change was also made to clarify that the subject safety zones 
include ``the navigable waters, from the surface to seabed.''

Regulatory Analyses

    The Coast Guard developed this rule after considering numerous 
statutes and executive orders related to rulemaking. Below we summarize 
our analyses based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This rule is not a significant regulatory action under section 3(f) 
of Executive Order 12866, Regulatory Planning and Review, and does not 
require an assessment of potential costs and benefits under section 
6(a)(3) of that Order. The Office of Management and Budget has not 
reviewed it under that Order.
    This rule is not a significant regulatory action due to the 
location of the MODU KULLUK on the Outer Continental Shelf and its 
distance from both land and safety fairways. Additional considerations 
were the relatively short period of time that the safety zone will be 
in effect and the limited size of the safety zone. Vessels traversing 
waters near the safety zone will be able to safely travel around the 
zone without incurring additional costs.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), the Coast 
Guard has considered whether this rule would have a significant 
economic impact on a substantial number of small entities. The term 
``small entities'' comprises small businesses, not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and

[[Page 39168]]

governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule 
would not have a significant economic impact on a substantial number of 
small entities. This rule could affect the following entities, some of 
which might be small entities: The owners or operators of vessels 
intending to transit or anchor in the Sivulliq and Torpedo Prospect of 
the Beaufort Sea, including Flaxman Island blocks 6610, 6658 and 6659 
(See Table 1).
    This safety zone will not have a significant economic impact or a 
substantial number of small entities for the following reasons: This 
rule will enforce a temporary safety zone around a MODU facility that 
is in an area of the Beaufort Sea not frequented by vessel traffic and 
is not in close proximity to a safety fairway. Further, vessel traffic 
can pass safely around the safety zone without incurring additional 
costs.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), in the NPRM we offered to 
assist small entities in understanding the rule so that they could 
better evaluate its effects on them and participate in the rulemaking 
process.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247). The Coast Guard will not retaliate against small 
entities that question or complain about this rule or any policy or 
action of the Coast Guard.

Collection of Information

    This rule would call for no new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.).

Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on them. We have analyzed this rule under 
that Order and have determined that it does not have implications for 
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 (adjusted for 
inflation) or more in any one year. Though this rule would not result 
in such expenditure, we do discuss the effects of this rule elsewhere 
in this preamble.

Taking of Private Property

    This rule would not cause a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Protection of Children

    The Coast Guard has analyzed this rule under Executive Order 13045, 
Protection of Children from Environmental Health Risks and Safety 
Risks. This rule is not an economically significant rule and would not 
create an environmental risk to health or risk to safety that might 
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order 
13175, Consultation and Coordination with Indian Tribal Governments, 
because it would not have a substantial direct effect on one or more 
Indian tribes, on the relationship between the Federal Government and 
Indian tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes.

Energy Effects

    The Coast Guard analyzed this rule under Executive Order 13211, 
Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a ``significant 
energy action'' under that order because it is not a ``significant 
regulatory action'' under Executive Order 12866 and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy. The Administrator of the Office of Information and 
Regulatory Affairs has not designated it as a significant energy 
action. Therefore, it does not require a Statement of Energy Effects 
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through the Office of Management and Budget, with an explanation of why 
using these standards would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., specifications of materials, performance, design, or 
operation; test methods; sampling procedures; and related management 
systems practices) that are developed or adopted by voluntary consensus 
standards bodies.
    This rule does not use technical standards. Therefore, we did not 
consider the use of voluntary consensus standards.

Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.lD, which 
guide the Coast Guard in complying with the National Environmental 
Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have concluded 
this action is one of a category of actions that do not individually or 
cumulatively have a significant effect on the human environment. This 
rule is categorically excluded, under figure 2-1, paragraph (34)(g), of 
the Instruction. This rule involves a temporary final rule for a safety 
zone that will be established for 1 week or longer. An environmental 
analysis checklist and a categorical exclusion determination are 
included in the docket, and can be obtained online by following the 
directions delineated in the ADDRESSES section above. Nevertheless, 
while safety zones are typically categorically excluded from NEPA 
analysis the Coast Guard anticipates that it will have more assets 
operating in the Arctic Ocean than normal due to increased vessel 
traffic in the Arctic Ocean. Consequently, the Coast Guard has 
undertaken an Environmental Assessment (EA) to determine the 
environmental impacts of its overall operations in the Arctic Ocean 
during the summer of 2012, and the enforcement of the subject safety 
zones has been included for

[[Page 39169]]

consideration of cumulative impacts. Public hearings on the draft EA 
were held on May 30, 2012, in Anchorage, Alaska, and on May 31, 2012, 
in Barrow, Alaska.

List of Subjects in 33 CFR Part 147

    Continental shelf, Marine safety, Navigation (water).

    For the reasons discussed in the preamble, the Coast Guard amends 
33 CFR part 147 as follows:

PART 147--SAFETY ZONES

0
1. The authority citation for part 147 continues to read as follows:

    Authority: 14 U.S.C. 85; 43 U.S.C. 1333; Department of Homeland 
Security Delegation No. 0170.1.


0
2. Add Sec.  147.T17-1143 to read as follows:


Sec.  147.T17-1143  Safety Zone; KULLUK, Outer Continental Shelf Mobile 
Offshore Drilling Unit (MODU), Beaufort Sea, Alaska.

    (a) Description. (1) The KULLUK will be engaged in exploratory 
drilling operations at various locations in the Beaufort Sea on or 
about July 1, 2012, through November 30, 2012. The MODU will be 
anchored while conducting exploratory drilling operations with the 
center point of the vessel located at the coordinates listed in Table 
1. These coordinates are based upon [NAD 83] UTM Zone 3.

                                                               Table 1--Prospect Locations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               NR06-04 Flaxman        Surface location (NAD 83)*          Distance to
                 Drill Site                           Lease file No.             Island lease   --------------------------------------   mainland shore
                                                                                  block No.         Latitude (N)      Longitude (W)         mi (km)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sivulliq G..................................  OCS-Y 1805....................               6658  70[deg]23'46.82''  146[deg]01'03.46'        16.6 (26.7)
                                                                                                                                    '
Sivulliq N..................................  OCS-Y 1805....................               6658  70[deg]23'29.58''  145[deg]58'52.53'        16.2 (26.1)
                                                                                                                                    '
Torpedo H...................................  OCS-Y 1941....................               6610  70[deg]27'01.62''  145[deg]49'32.07'        20.8 (33.5)
                                                                                                                                    '
Torpedo J...................................  OCS-Y 1936....................               6559  70[deg]28'56.94''  145[deg]53'47.15'        23.1 (37.2)
                                                                                                                                    '
--------------------------------------------------------------------------------------------------------------------------------------------------------

     (2) The navigable waters, from the surface to seabed, within 500 
meters (1,640.4 feet) from each point on the outer edge of the vessel, 
while anchored or deploying and recovering moorings on location, is a 
safety zone. Lawful demonstrations may be conducted outside of the 
safety zone.
    (b) Regulation. No vessel may enter or remain in this safety zone 
except the following:
    (1) An attending vessel; or
    (2) A vessel authorized by the Commander, Seventeenth Coast Guard 
District, or a designated representative. A ``designated 
representative'' is any Coast Guard commissioned, warrant or petty 
officer of the U.S. Coast Guard who has been designated by the 
Commander, Seventeenth Coast Guard District to act on his or her 
behalf.
    (c) Penalties. Violation of this regulation may result in criminal 
or civil penalties, or both.
    (d) Effective period. This rule is effective from July 1, 2012, and 
terminates on December 1, 2012, unless sooner terminated by the 
Commander, Seventeenth Coast Guard District.

    Dated: June 13, 2012.
Thomas P. Ostebo,
Rear Admiral, U.S. Coast Guard, Commander, Seventeenth Coast Guard 
District.
[FR Doc. 2012-16116 Filed 6-29-12; 8:45 am]
BILLING CODE 9110-04-P


