California Decision on MAOP Determination Methodology

This is somewhat old news to some, but not everyone, so we decided to include a brief article on a recent decision (June 16, 2011) the California PUC made in regards to intrastate gas transmission operators who have relied upon the pre-1970 grandfather clause for establishing MAOP. It requires all intrastate gas transmission operators in the state of California “to develop and file for California PUC consideration a Natural Gas Transmission Pipeline Comprehensive Pressure Testing Implementation Plan to achieve the goal of orderly and cost effectively replacing or testing all natural gas transmission pipeline that have not been pressure tested.” The deadline for submittal of these plans is August 26, 2011 for four operators specifically named in the decision. The decision requires that the implementation plans outline steps each operator will take to identify and either pressure test or replace all segments of natural gas pipelines which were not pressure tested (grandfathered highest actual operating pressures in 5 years previous to 1970) or lack sufficient details related to performance of such test. The decision also requires operators to give higher priority to class 3 & 4 areas as well as class 1 & 2 HCA’s. This decision is obviously limited to pipelines under the jurisdiction of the California PUC, but is certainly noteworthy for all gas transmission pipeline operators given the heightened attention that MAOP has received during the PHMSA reauthorization hearings. For a copy of the decision, contact Jessica Roger.