On August 15, 2012, the Bureau of Safety and Environmental Enforcement (BSEE) issued the Final Drilling Safety Rule (Final Rule). The Final Rule modifies the Interim Final Rule (IFR) published on October 14, 2010, that was based on recommendations made by the Department of the Interior (DOI) in the May 27, 2010 Safety Measures Report requested by the President following the April 2010 Deepwater Horizon incident. The Final Rule takes effect on October 22, 2012. Until then, the IFR remains effective.

The Final Rule affirms the well-bore integrity requirements established by the IFR, including casing and cementing design and installation requirements, tighter cementing practices, the displacement of kill-weight fluids, and testing of independent well barriers — all intended to ensure additional physical barriers and decrease the likelihood of a loss of well-control. In addition, the Final Rule adopted, with only slight modifications, the IFR's requirements for well-control equipment, which are designed to ensure the proper operation of Blowout Preventers (BOPs) in an emergency and that Remotely Operated Vehicles (ROVs) can activate the BOPs.

While much of the Final Rule remains the same as the IFR, important changes were made as a result of consideration of public comments.

Significantly, responding to public criticisms of the feasibility and legality of incorporating some industry consensus guidelines, BSEE revised Rule §250.198(a)(3) to eliminate the interim instruction that when "any incorporated [consensus guideline] uses the word should, it means must for purposes of these regulations." BSEE continues to assert that all documents incorporated by reference have binding legal effect, but the change acknowledges a difference of opinion on the scope and application of non-mandatory recommendations found in industry standards that are adopted by the agency.

Other material changes from the IFR include revisions to the definition of well-control so that all persons responsible for monitoring the well and/or maintaining the well-control equipment are included in training requirements, revisions on the installation of dual mechanical barriers to require that operators install one mechanical barrier in addition to cement for the final casing string (or liner if it is the final string) to prevent flow in the event of a failure in the cement, and clarifications that float valves are not considered mechanical barriers. Additionally, at least two barriers must now be installed before removing the BOP although the BSEE District Manager may require additional barriers. The Final Rule extends the requirements for BOPs and well-control fluids to well-completion, well-workover, and decommissioning operations.

With regard to well-bore requirements, the Final Rule updates the incorporation by reference of API Standard 65, Part 2 to the second edition issued December 2010, which outlines the process for isolating potential flow zones during well construction and enhances the description and classification of well-control barriers. It clarifies that all BOP systems must include a wellhead assembly with a rated working pressure that exceeds the maximum anticipated wellhead pressure, rather than the maximum anticipated surface pressure as the IFR specified.

In sum, the Final Rule establishes and affirms:

  • New casing and cementing integrity tests and installation requirements;
  • Independent third-party verification of blind-shear ram capability and of subsea BOP stack capability;
  • New requirements and function testing for subsea secondary BOP intervention;
  • Documentation for BOP inspections and maintenance; and
  • New requirements for specific well-control training to include deepwater operations.

Although the bulk of the rule has not changed, BSEE's consideration of and response to public comments provides in the Final Rule more guidance to operators.

You can view the Final Rule and BSEE's responses to specific comments here.

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