HQ 109849: Application of the coastwise laws to a drilling vessel on the outer continental shelf (OCS).

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                      HQ 109849

                                  November 18, 1988

          VES-3-15 CO:R:P:C 109849 PH

          CATEGORY:  Carriers

          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