Large OSV Rulemaking Overview OMSA: 23 Sept 2014

Overview History Background Highlights Requirements

History Existing OSV regulations in Subchapter L published 1996 Interim Rule (IR) Required by The Coast Guard Authorization Act of 2010 (Public Law 111-281) (“the Act”): Published Aug 18 (79 FR 48894) Issue an IR ensuring the safe carriage of oil, hazardous substances, and individuals in addition to crew OSVs of at least 6,000 gross tonnage as measured under the International Convention on Tonnage Measurement of Ships (6,000 GT ITC). Vessels of at least 500 gross tons as measured under the regulatory tonnage measurement system, if that vessel does not have a GT ITC Enables construction of larger vessels sought by industry for far offshore and/or international work

Why? OSVs larger OSVs performing more functions Carrying more over longer distances as oil rigs move to deeper water, further offshore OSVs performing more functions Providing ever expanding range of services including well stimulation, dive support, etc. Growing international work Brazil, Gulf of Guinea, etc.

Requirements Does not impact vessels currently under construction, as provided for by the Act (Sec. 617 (f)(3)) Classification / International Certificates / Engineering Carriage of Oil and Noxious Liquid Substance (NLS) cargoes in bulk Carriage of more than 36 offshore workers Number and Qualifications of Crew and Division of Watches 79 FR 48897 : “Section 125.100 paragraphs (b) and (c), which were put in place prior to this interim rule and are not substantively changed by it, provide for grandfathering of vessels contracted for, or the keels of which were laid, prior to March 15, 1996, on the condition that those vessels completed construction and obtained a Certificate of Inspection (COI) within 2 years.”

Classification / international certificates / engineering Requirements Classification / international certificates / engineering Obtain International Certificates: Cargo Ship Safety Construction, Cargo Ship Safety Equipment, Safety Management, Oil Pollution Prevention, Air Pollution Prevention, Load Line Certificates Meet Additional Cargo vessel Regulations (F & J); more options for electrical equipment in hazardous areas Anticipate use of Alternate Compliance Program Scope of Class” – Not to require “optional” notations for services not covered by regulation (e.g. well stimulation); see Supplement to ABS OSV Rules Coast Guard needs industry Comment! ( see slide 9 ; comment period closes November 17, 2014) NOSAC Task Statement: Definitions: offshore supply vessel, offshore worker, industrial vessel, and industrial personnel (see 79 FR 17558 ; new task statement; slide 9). Multi-certificated I/L – has situation changed with new rule? 79 FR 48896: “safety requirements in these international standards align with the increased risk associated with large OSVs’ capacity to carry cargo and passengers, and we also consider it very likely that large OSVs will comply with these international standards in order to engage in international commerce.” “increased capacity (to carry larger volumes of NLS) … and the corresponding increase in the potential consequences of an incident (risk to the environment if spilled) involving a large OSV.” “Existing OSV standards do not account for conditions found further offshore, such as larger and higher wave amplitude, or the capacity to carry more personnel. “ NOSAC Task Statement: “While the Coast Guard recognizes this evolution of the offshore supply vessel (OSV), and has tried to adjust to the industry needs through programs such as “multi-certification,” the Coast Guard also recognizes that additional adjustments are necessary as the OSV mission continues to evolve and the number of offshore workers on board an OSV will likely continue to grow.” This rule also creates new Subpart 111.106, ‘‘Hazardous Locations on OSVs,’’ specifically for large OSVs. The Subpart provides a choice of standards with which electrical installations must comply when they cannot be placed outside hazardous locations, and testing and certification requirements appropriate to each choice. Electrical installations must comply with either National Electric Code (NEC) standards or International Electrotechnical Commission (IEC) standards, subject to certain testing requirements and, in the case of the IEC option, substitution of U.S. requirements for certain provisions of the international standard. This rule provides the flexibility to choose an internationally accepted certification system that existing Subpart 111.105 does not provide.

Requirements NLS: Must have Certificate of Fitness to IMO A.673 (16) Carriage of Oil and Noxious Liquid Substance (NLS) cargoes in bulk NLS: Must have Certificate of Fitness to IMO A.673 (16) Based upon existing Coast Guard guidance on International Maritime Organization Resolution A.673 (16) that provides an alternative to the International Bulk Chemical Code, or IBC Code. Increasingly hazardous cargoes drive increased environmental protection requirements Cargos not classified in IMO A.673 (16) must be approved by CGHQ (CG-ENG) OSVs may carry unclassified cargoes, obtaining classification may induce delays Drilling Fluids Containing Oil: Integral tanks authorized to carry “oil” must meet “OPA 90” (33 CFR 157.10d ) double hull, can’t carry with over 240 total persons 79 FR 48899: The Coast Guard believes that Congress intended to enable the carriage of larger volumes of these liquids so as to better serve the changing offshore industry. Specifically, this rule amends § 125.110 to require that tanks authorized for carriage of cargo oil, including drilling fluids containing oil, comply with double hull requirements designed for tank vessels and found in 33 CFR 157.10d. Applying tank vessel double hull requirements is appropriate in light of the pollution risk that accompanies the large volumes of oil and oil-based cargoes these OSVs may Carry. The new § 125.125 integrates some of this guidance in regulation. It allows a large OSV to carry NLS in bulk in its integral and fixed independent tanks if the OSV holds either a valid Certificate of Fitness or a valid International Pollution Prevention Certificate for the carriage of NLS in bulk, issued pursuant to regulations implementing Resolution A.673(16) at § 125.125(b) through (f).

Requirements Carriage of more than 36 Offshore Workers Provides for the carriage of more than 36 offshore workers by setting new incremental safety standards based on the total number of personnel onboard. See NOSAC Task Statement 79 FR 17558: A person carried on a U.S. Documented OSV that engages in services “in support of” OCS activities (e.g. well testing, well stimulation, ROV operations, subsea construction, dive support) : Is an “Offshore Worker” ? (46 CFR 125.160) Is a “Seaman”? (MSM Vol II Part B CH 1 Sec. H Par. B1) Needs to be a U. S. Citizen? ( 46 U.S.C. 8103(b) ) Needs an MMD? (46 U.S.C. 8701 ) 79 FR 17558: NOSAC Task Statement: “The definition of an OSV, found in 46 USC § 2101(19) and 46 CFR 125.160, states that an OSV, “regularly carries goods, supplies, individuals in addition to the crew, or equipment in support of exploration, exploitation, or production of offshore mineral or energy resources.” There has been confusion over what the terms, “carries,” and, “in support of,” mean collectively in this definition. One interpretation is that these terms, when read together, would limit an OSV to the strict transportation of goods, supplies, individuals or equipment to another OCS unit attached to the seabed, such as a production facility or mobile offshore drilling unit (MODU). The other interpretation recognizes that what is transported (e.g., individuals or equipment) may be used in operations performed from the OSV in support of OCS activities - these operations may include well stimulation, testing and intervention, subsea construction and/or dive support.   After a review of the original 46 CFR Subchapter L NPRMs, class society OSV type definitions, and current industry practice, the Coast Guard believes it is this second interpretation which best reflects the current paradigm of OSV operations on the U.S. OCS The Coast Guard maintains that, in general, work performed like well testing, well stimulation, ROV operations, subsea construction, dive support, and/or etc. is done “in support of” OCS activities “In addition, a more practical application of offshore worker definition that also recognizes that offshore workers are conducting the “services” on the OSV, in addition to being carried to a platform, MODU, etc., is in order. The Coast Guard maintains that the definition of an offshore worker can be more broadly interpreted since it does not specifically prohibit an offshore worker from engaging in support operations on an OSV, provided it is in support of, "exploration, exploitation, or production.” and may be accomplished by an OSV. “ Note: references / background for NOSAC tasker: D8(m) Policy ltr 09-2001, “CERTIFICATION OF MULTI-SERVICE OFFSHORE SUPPLY VESSELS (OSVs)” 46 CFR 90.10–16 and 90.10–15 79 FR 48894, Offshore Supply Vessels of at Least 6,000 GT ITC 46 U.S.C. 8103(b) 33 CFR 141.15 43 U.S.C. §§ 1331-1356 USCG Marine Safety Manual, Vol. II: Materiel Inspection, SECTION G: OUTER CONTINENTAL SHELF ACTIVTIES, CHAPTER 1: Regulations, Policy and Guidance for a Unit Conducting OCS Activity, Paragraph H.1 “Determining Which Personnel May be Employed on a Unit Engaged in an OCS Activity” MSM Marine Safety Manual III: Marine Industry Personnel PART B: VESSEL MANNING CHAPTER 1: GENERAL PROVISIONS FOR VESSEL MANNING,Sec. H, p. B1 7, 8. 46 CFR 125.160 “Definitions”

Requirements Number and Qualifications of Crew and Division of Watches OSV of at least 6,000 GT ITC must have: have two licensed mates on a voyage of less than 600 miles, and three licensed mates on a voyage of at least 600 miles Voyage Calculation ( new § 15.810(b)(6) ) purpose of the regulation: more mates—and therefore, shorter watches and less fatigue—on long voyages, even if voyages include visits to offshore points Engineers for Automated Engine Rooms (46 CFR 15.825 ): large OSVs approved for the use of automated systems must carry at least one assistant engineer; OCMI may require more Refer also to STCW final rule ; included provisions for credentialing of mariners who will serve aboard OSVs of greater than 3,000 Gross Tons (ITC). 46 CFR 11.491 through 11.497, on pages 147-148 of the linked document. The Coast Guard expects to publish NVIC, on credentialing of mariners for large OSVs 79 FR 48903: Section 617(c) of the Act amended 46 U.S.C. 8301 to specify the minimum number of licensed individuals required aboard OSVs. It requires that an OSV of less than 500 GRT or 6,000 GT ITC have one licensed mate on a voyage of less than 600 miles, and two licensed mates on a voyage of at least 600 miles. It also requires that an OSV of at least 6,000 GT ITC have two licensed mates on a voyage of less than 600 miles, and three licensed mates on a voyage of at least 600 miles. This interim rule revises 46 CFR 15.810 to reflect the statutory changes, Previously, regulations had stated that a voyage includes the accrued distance from port of departure to port of arrival and does not include stops at offshore points. The Coast Guard has become aware, however, that some readers misinterpret this provision to restart the voyage at each offshore point. This is an incorrect reading of the current language and undermines the purpose of the regulation, which is to provide for more mates—and therefore, shorter watches and less fatigue—on long voyages, even if those voyages include visits to offshore points. Therefore, new § 15.810(b)(6) for large OSVs clarifies that a voyage includes the total accrued distance between departing and arriving at a port. 46 CFR 15.825 to specify that large OSVs approved for the use of automated systems must carry at least one assistant engineer. The Coast Guard agrees with this NOSAC recommendation because, as the size of the vessel increases, so do the engineering demands. The increased number of engineering components and the enhanced complexity of component technology make it important to keep enough personnel on board to maintain those components, and to respond to shipboard emergencies and equipment failure. For these reasons, large vessels usually carry one or more assistant engineers. The requirement that large OSVs carry an assistant engineer is only a minimum standard and the operator should provide additional engineers if necessary for safe vessel operation. Additionally, the Officer in Charge, Marine Inspection (OCMI) may continue to require more than one engineer under existing § 15.825(c), which has been redesignated as paragraph (d). 78 FR 77851 (STW Final Rule)   32. Dynamic Positioning One commenter expresses disappointment that the SNPRM does not include an endorsement for Dynamic Positioning Officers (DPO) under B–V/f of the STCW Code. Issuing this endorsement, even if not required by the COI on U.S. flag vessels, would highlight the unique training and experience of DPOs and set a standard among other STCW signatory nations. The commenter urges the Coast Guard to consider creating such an endorsement. DP requirements are being addressed in a separate rulemaking. Additionally,§ 15.520 has been amended to clarify the status of a MODU on DP. STCW’s basic safety training as required in 46 CFR parts 11 and 12. This training includes (1) personal survival techniques, (2) fire prevention and firefighting, (3) elementary first aid, and (4) personal safety and social responsibilities, as set out in section A-VI/1 of the STCW Code.

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