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XIV. Regulatory Findings

This section addresses regulatory requirements that were in effect on
394
April 20, 2010.

Under the Outer Continental Shelf Lands Act (“OCSLA”), the Secretary of
the Interior is authorized to manage and regulate the leasing, exploration,
development, and production of resources on the Outer Continental Shelf
(“OCS”). The Secretary has delegated this authority to BOEMRE (MMS at the
time of the Macondo blowout). 395

OCSLA provides that lease or permit holders have an affirmative duty to:

(1) maintain all places of employment within the lease area or within the
area covered by such permit in compliance with occupational safety and
health standards and, in addition, free from recognized hazards to
employees of the lease holder or permit holder or of any contractor or

subcontractor operating within such lease area or within the area covered
by such permit on the OCS;

(2) maintain all operations within such lease area or within the area
covered by such permit in compliance with regulations intended to
protect persons, property and the environment on the OCS; and

(3) allow prompt access, at the site of any operation subject to safety
regulations, to any inspector, and to provide such documents and records

394 Since April 20, 2010, BOEMRE has implemented a number of regulatory reforms aimed at
improving drilling and workplace safety. On September 30, 2010, BOEMRE implemented the
Interim Final Rule (sometimes referred to as the “Drilling Safety Rule”) and the Workplace Safety
Rule (sometimes referred to as the “SEMS Rule” for Safety and Environmental Management
Systems). The Interim Final Rule created new standards for well design; casing and cementing;
and well control procedures and equipment, including blowout preventers. The Workplace
Safety Rule required operators to systematically identify and address risks in order to reduce the
human and organizational errors that lie at the heart of many accidents and oil spills. Effective
November 11, 2011, operators in the U.S. will be required to have a comprehensive SEMS
program that identifies the potential hazards and risk‐reduction strategies for all phases of
activity, from well design and construction, to operation and maintenance, and finally to the
decommissioning of platforms.
395 Effective October 1, 2011, BOEMRE will be reorganized into two bureaus – the Bureau of
Ocean Energy Management and the Bureau of Safety and Environmental Enforcement.

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