VES-3-15 CO:R:P:C 109849 PH
Mr. Robert P. Baumgartner
Exxon Company, U.S.A.
Post Office Box 61707
New Orleans, Louisiana 70161-1707
RE: Application of the coastwise laws to a drilling vessel on
the outer continental shelf (OCS).
Dear Mr. Baumgartner:
This is with reference to your letter of November 10, 1988,
concerning the application of the coastwise laws to a self-
propelled drilling vessel on the OCS after its anchors are
deployed at a drilling site on the OCS but before actual drilling
has commenced.
FACTS:
It is proposed to operate a non-coastwise-qualified mobile
oil drilling vessel on the OCS of the United States. The eight
40,000 pounds anchors of the vessel, which are part of the
vessel's permanent equipment, are to be deployed and resting on
the bed of the OCS approximately 2 weeks before the actual
spudding is to begin. It is anticipated that the vessel will
remain in its anchored position for approximately 100 days.
ISSUE:
Whether a self-propelled drilling vessel is considered to be
a coastwise point when it is at anchor at an OCS drilling site
before it engages in drilling operations.
LAW & ANALYSIS:
The coastwise laws (e.g., 46 U.S.C. App. 289 and 883, 46
U.S.C. 12106 and 12110) prohibit the transportation of
merchandise or passengers between points in the United States
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embraced within the coastwise laws in any vessel other than a
vessel built in and documented under the laws of the United
States and owned by persons who are citizens of the United
States.
Pursuant to section 4(a) of the Outer Continental Shelf Lands
Act of 1953, as amended (43 U.S.C. 1333(a)) (OCSLA), the laws of
the United States are extended to "... the subsoil and seabed of
the outer Continental Shelf and to all artificial islands, and
all installations and other devices permanently or temporarily
attached to the seabed, which may be erected thereon for the
purpose of exploring for, developing, or producing resources
therefrom ... to the same extent as if the outer Continental
Shelf were an area of exclusive Federal jurisdiction located
within a State."
Under the foregoing provision, we have ruled that the
coastwise laws are extended to mobile rigs during the period they
are secured to or submerged onto the seabed of the OCS (Treasury
Decision 54281(1)). Subsequent rulings applied the same
principles to drilling platforms, artificial islands, and similar
structures.
As indicated above, a drilling vessel is considered a
coastwise point while attached to the seabed of the OCS for the
purpose of drilling or exploring for resources from the OCS. A
drilling vessel is considered to be so attached to the seabed of
the OCS while engaged in drilling operations and while at anchor
before or after engaging in drilling at that location. Any
vessel transporting merchandise or passengers between the United
States mainland or any other United States coastwise point and
the vessel while it was considered to be a coastwise point would
be required to be coastwise qualified.
HOLDING:
A self-propelled drilling vessel is considered to be a
coastwise point when it is at anchor at an OCS drilling site
before and after it engages in drilling operations.
Sincerely,
B. James Fritz
Chief
Carrier Rulings Branch