This subpart prescribes rules that apply to the transfer of oil or natural gas at a deepwater port.

(a) No person may transfer oil or natural gas through a cargo transfer system (CTS) at a deepwater port unless it has been inspected and tested according to this section.

(b) The single point mooring (SPM)-CTS must be maintained as required by the design standards used to comply with § 149.650 of this chapter.

(c) If the manufacturer's maximum pressure rating for any cargo transfer hose in a SPM-CTS has been exceeded, unless it was exceeded for testing required by this section, the hose must be:

(1) Removed;

(2) Hydrostatically tested to 1.5 times its maximum working pressure for oil, or 1.1 times its maximum working pressure for natural gas; and

(3) Visually examined externally and internally for evidence of:

(i) Leakage;

(ii) Loose covers;

(iii) Kinks;

(iv) Bulges;

(v) Soft spots; and

(vi) Gouges, cuts, or slashes that penetrate the hose reinforcement.

(d) Each submarine hose used in cargo transfer operations in an SPM-CTS must have been removed from its coupling, surfaced, and examined as described in paragraphs (c)(2) and (c)(3) of this section, within the preceding 2 years for oil, or 15 months for natural gas; and

(e) Before resuming cargo transfer operations, each submarine hose in an SPM-CTS must be visually examined in place as described in paragraph (c)(3) of this section after cargo transfer operations are shut down due to sea conditions at the deepwater port.

When any piece of equipment involved in oil or natural gas transfer equipment is defective:

(a) The piece of equipment must be replaced or repaired before making any further cargo transfers; and

(b) The repaired or replaced piece must meet or exceed its original specifications. Repairs must be conducted in accordance with the port's maintenance program outlined in the operations manual, and that program must provide for the repair of natural gas transfer hoses in accordance with § 127.405 of this chapter.

Cargo transfer procedures must be outlined in the deepwater port operations manual and must provide:

(a) Oil transfer procedures that accord with § 156.120 of this chapter; and

(b) Natural gas transfer procedures that accord with §§ 127.315, 127.317 and 127.319 of this chapter.

(a) No person may transfer cargo from a tanker to a manned deepwater port unless a declaration of inspection complying with § 156.150(c) for oil, or § 127.317 for natural gas, of this chapter has been filled out and signed by the vessel's officer in charge of cargo transfer and the person in charge (PIC) of cargo transfer for the deepwater port.

(b) Before signing a declaration of inspection, the vessel's officer in charge of cargo transfer must inspect the tanker, and the PIC of cargo transfer for the deepwater port must inspect the deepwater port. They must indicate, by initialing each item on the declaration of inspection form, that the tanker and deepwater port comply with § 156.150 for oil, or § 127.317 for natural gas, of this chapter.

No person may transfer cargo at a deepwater port:

(a) When the person in charge (PIC) of cargo transfer is not on duty at the deepwater port;

(b) During an electrical storm in the deepwater port's vicinity;

(c) During a fire at the port, at the onshore receiving terminal, or aboard a vessel berthed at the port, unless the PIC of cargo transfer determines that a cargo transfer should be resumed as a safety measure;

(d) When a leak develops so that a sufficient quantity of product accumulates in the cargo containment underneath the manifold or piping;

(e) When there are not enough personnel nor equipment at the port dedicated to containand remove the discharge or perform the emergency response functions as required in the port's response plan under part 154 for oil, or emergency plan under part 127 for natural gas, of this chapter;

(f) Whenever the emergency shutdown system should have activated but failed to;

(g) By lighterage, except in bunkering operations, unless otherwise authorized by the Sector Commander, or MSU Commander, with COTP and OCMI authority ;

(h) When the weather at the port does not meet the minimum operating conditions for cargo transfers as defined in the port's operations manual; or

(i) When prescribed by the deepwater port security plan under heightened security conditions at the deepwater port or its adjacent areas, or on vessels calling on or serving the deepwater port.

(a) In case of emergency, the Sector Commander, or MSU Commander, with COTP and OCMI authority may order the suspension of cargo transfers at a deepwater port to prevent the discharge, or threat of discharge, of oil or natural gas, or to protect the safety of life and property.

(b) An order of suspension may be made effective immediately.

(c) The order of suspension must state the reasons for the suspension.

(d) The licensee may petition the District Commander to reconsider the order of suspension. The petition must be in writing, unless the order of suspension takes effect immediately, in which case the petition may be made by any means, but the petition does not delay the effective date of the suspension. The decision of the District Commander is considered a final agency action.

(a) The oil in an SPM-OTS must be displaced with water, and the valve at the pipeline end manifold must be closed whenever:

(1) A storm warning forecasts weather conditions that will exceed the design operating criteria listed in the operations manual for the SPM-OTS;

(2) A vessel is about to depart the SPM because of storm conditions; or

(3) The SPM is not scheduled for use in an oil transfer operation within the next 7 days.

(b) The requirement in paragraph (a) of this section is waived if port officials can demonstrate to the Sector Commander, or MSU Commander, with COTP and OCMI authority that a satisfactory alternative means of safely securing all cargo transfer hoses can be implemented in the event of severe weather conditions.