DOT Pipeline Compliance News

August 2004 Issue

In This Issue

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Gas Pipeline Advisory Notice

Gas pipeline operators are required by 49 CFR 192.945 to make their first semi-annual submission of integrity management performance measures by August 31, 2004. The four overall performance measures that gas transmission pipeline operators are required to submit are:

1. Number of pipeline miles inspected versus program requirements.
   
   
2. Number of immediate repairs completed as a result of the integrity management inspection program.
   
   
3. Number of scheduled repairs completed as a result of the integrity management program.
   
   
4. Number of leaks, failures, and incidents (classified by cause).

RSPA/OPS is developing an electronic form to facilitate submission of the required measures. This form will be available on the OPS Home Page (http://ops.dot.gov), no later than August 1, 2004. The electronic report form for the August 2004 report will ask operators to verify that they began integrity management assessments, consistent with Advisory Bulletin ADB-03-07, by June 17, 2004. However, integrity management plans, including identification of high consequence area mileage, are not required to be completed until December 2004. Much of the data that might be reported in August would be preliminary and subject to change. Use of that data for comparison to later reports, (e.g., to identify trends), could be seriously misleading. RSPA/OPS has concluded that reporting numerical results for the four overall performance measures would be premature for the initial submission of performance measures required by August 31, 2004.

RSPA/OPS expects that the electronic submission form to be created for the August 2004 submissions will indicate the form in which data will be collected for future intervals, but that those data fields will be inoperable for this reporting cycle. Likewise, operators reporting by mail or facsimile need not include numerical data related to the four overall performance measures, and should simply indicate that they began assessment activities by the required date. RSPA/OPS will provide additional advice regarding reporting for specific performance measures at a later date, if needed. For a copy of the full advisory notice, contact Laura Wager at lwager@your-rcp.com.

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DOT Pipeline Compliance / Integrity Assessment Workshop September 28 – 30, 2004 – Houston

RCP will conduct a 3-day workshop on DOT Pipeline Regulations on September 28 – 30 in Houston.

• Day 1 of this workshop will present an overview of all the current DOT regulations for pipeline operators.
• Day 2 will review recent integrity management initiatives and national standards (ASME, NACE, API) for liquid gas pipelines including ECDA/ICDA, SCCDA, and ILI standard development.
• Day 3 will review a variety of regulatory requirements associated with integrity assessments, including permitting, waste management, remediation/repair, excavation, hydro testing, and ILI.

This workshop is suitable for all levels of pipeline regulatory and integrity management expertise. We have conducted several of these seminars in the past, and have received excellent feedback. We expect this workshop to fill up rapidly. Early registration and group discounts are available.

For more information or to register, you may visit our website www.your-rcp.com/seminars or call Maria at 1-888-727-9937.

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NTSB Recommendations Concerning Pipe Transportation

On July 1, 2004, the National Transportation Safety Board made the following safety recommendations to the Research and Special Programs Administration: Remove the exemption in 49 Code of Federal Regulations 192.65 (b) that permits pipe to be placed in natural gas service after pressure testing when the pipe can not be verified to have been transported in accordance with the American Petroleum Institute’s recommended practice RP 5L1. (P-04-01) Amend 49 Code of Federal Regulations to require that natural gas pipeline operators (Part 192) and hazardous liquid pipeline operators (Part 195) follow the American Petroleum Institute’s recommended practice RP 5LW for transportation of pipe on marine vessels. (P-04-02) Evaluate the need for a truck transportation standard to prevent damage to pipe, and, if needed, develop the standard and incorporate it in 49 Code of Federal Regulations Parts 192 and 195 for both natural gas and hazardous liquid line pipe. (P-04-03)

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Acquiring a pipeline?

RCP can provide due diligence audits to help you ensure that potential compliance issues have been addressed before the sale is final. Click Here.

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Standards of Performance for Stationary Gas Turbines – Final rule; Amendments

The EPA has promulgated amendments to several sections of the standards of performance for stationary gas turbines in 40 CFR part 60, subpart GG. The amendments will codify several alternative testing and monitoring procedures that have routinely been approved by EPA. The amendments will also reflect changes in nitrogen oxides (NOX) emission control technologies and turbine design since the standards were promulgated. Regulated categories and entities include any industry using a stationary combustion turbine as defined in the final rule, including:

NAICS	SIC	Examples of regulated entities
2211 486210	4911 4922	Electric services. Natural gas transmission.
211111	1311	Crude petroleum and natural gas.
211112	1321	Natural gas liquids.

The final rule is effective July 8, 2004. The incorporation by reference of certain publications in the final rule is approved by the Director of the Office of the Federal Register as of July 8, 2004. The EPA has established a docket for this action under Docket ID No. OAR-2002-0053. For the full text of the final rule, the file can be downloaded here ( Gas Turbine Standards Update ) or contact Laura Wager at lwager@your-rcp.com.

Shameless Commerce Plug:Did you realize that RCP also handles Title V air permit applications, reporting, and site compliance manuals?

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Need A Security Plan or Audit?

We have the expertise to develop a security plan and perform risk assessments for pipeline and terminal facilities to meet recent DOT Hazmat Transportation & Pipeline regulations. We can also assist you in USCG security plans for dock facilities and vessels. Please contact Jessica Roger for more information.

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ASME B31Q Industry Teleconference Recap (July 2, 2004)

On July 2, 2004, various members of the ASME B31Q committee provided brief updates on the status and future of the upcoming Operator Qualification regulatory changes. The committee has not finalized anything yet, so take these notes with a large grain of salt because things could change (although not expected).

1. The committee plans to have a final draft available for ballot review by November 2004, Notice of Proposed Rulemaking completed by Spring �05, and publish a Final Rule by the Spring of 2006. Operators are expected to be granted at least 1 year after issuance of the Final Rule to fully implement the changes.
   
2. The scope of the revised rulemaking is intended to affect activities affecting safety and integrity; design tasks and off-pipeline activities (such as sending components for repair) are not expected to be included.
   
3. The standard is not expected to prescribe acceptable ratios for qualified individuals who can supervise unqualified individuals performing covered tasks.
   
4. A Covered Task List (�Applicable Tasks�) is being designed by one of the sub-committees which will allow operators to choose between this pre-defined list or utilize an Alternative Technical Basis for defining Covered Tasks specific to the operator. Operators will now have a Two-Part Test to identify Covered Tasks: Does the Task affect Safety and/or Integrity? Is the Task performed by the Operator, Contractor, or other construction-related activities on the pipeline?
   
5. Training Requirements are expected to include:
   
   1. a process for evaluating whether training is needed for a covered task
      
   2. a process for evaluating the content and quality of training materials and providers
      
   3. a process for evaluating initial qualification versus re-qualification techniques and intervals
      
6. One significant change from current requirements will be requirements for operators to manage changes and evaluate the effectiveness of their operator qualification program. This will involve documenting changes related to covered tasks, communicating with stakeholders, and assessing Evaluator credentials.
   
7. The idea of �Portability� for contractors who perform Covered Tasks for several different pipeline operators has received a lot of attention recently.  A new committee has been working on providing a standardized means of qualifications that can be widely accepted across the industry.  There is discussion about the possibility of an independent third party that has oversight of the effectiveness and quality of portability providers.

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O&M Manual Up-To-Date?

RCP has the tools and expertise to develop comprehensive procedures that you need to protect your people, facilities, and environment. Click Here

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Liquefied Natural Gas Facilities; Clarifying and Updating Safety Standards

On March 10, 2004, RSPA published a final rule that amended regulations in 49 CFR part 193 related to the fire protection of LNG facilities used in gas pipeline transportation ( 69 FR 11330; Docket No. RSPA-03-14456). An amendment to 49 CFR 193.2005 clarified that the fire protection requirements of part 193 (contained in � 193.2801, Fire protection) apply to LNG facilities existing on March 31, 2000. In addition, an amendment to � 193.2801 clarified which provisions of NFPA 59A, “Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG)” were incorporated by reference. That amendment also provided an extended compliance time for actions to be taken regarding certain systems and personnel qualification. A separate amendment updated all part 193 references to the 1996 edition of NFPA 59A to the 2001 edition of that standard.

By letter dated April 8, 2004, the American Gas Association, a trade association representing operators of LNG facilities, submitted a petition for reconsideration of the final rule as it relates to the fire protection requirements of � 193.2801. RSPA�s response of July 12, 2004, rejected AGA�s petition, and gave additional information concerning RSPA�s interpretation of the new rule requirements. For a complete copy of RSPA�s response, please contact Laura Wager at lwager@your-rcp.com.

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Pending Audits?

Has the DOT notified you of a pending audit? RCP can provide confidential internal auditing to help ensure that your facilities are up to the agency’s latest standards.
Click Here.

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Procedural Change for Annual NPMS Submission Updates

The Office of Pipeline Safety has implemented a procedural change to the pipeline operators’ annual NPMS submission updates. Operators may now perform these updates through the NPMS Web site (http://www.npms.rspa.dot.gov/). Follow the link on the home page marked “Update Your Submission Online” to access this application. Through this interface, pipeline operators can inform the National Repository that their data and public contact information have not changed, or that they plan to resubmit. Operators must update their data or confirm it as accurate every 12 months in order to comply with the Pipeline Safety Improvement Act of 2002. Previously, operators could notify OPS that their data had not changed by sending an email to opsgis@rspa.dot.gov. Although that option is still available, OPS prefers that operators update their submissions through this Web-based application.

The application allows an operator to view geospatial information, attributes, and public contact information by submission or for an operator ID (OPID) as a whole. The operator may also verify contact information and submission dates. The application will provide the annual due date for an operator’s NPMS submission. Resubmission of data will continue to be handled through the National Repository.

To access the application, pipeline operators need a Pipeline Integrity Management Mapping Application (PIMMA) username and password. If an operator already has a PIMMA username and password, he or she may use it. If an operator has forgotten his or her username or password, please contact National Repository staff at npms-nr@mbakercorp.com or 703-317-6205.

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Integrity Management Plan Up-to-Date?

RCP has the tools and expertise to develop comprehensive Integrity Management Plans for both liquid and gas pipelines. Click Here if you would like information on RCP’s Integrity Management Services and receive a copy of our FREE Integrity Management CD.

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Gas Pipelines in Liquid Integrity Management Plans

The American Petroleum Institute (API) and the Association of Oil Pipeline (AOPL) have submitted two petitions to DOT/OPS to amend Title 49 CFR Part 195.452. While most API member companies are primarily engaged in the transportation of hazardous liquids, some of the members do operate small amounts of gas pipelines that are subject to the Part 192 Subpart O Pipeline Integrity Management Rule. Acceptance of the petition would allow operators to incorporate their gas pipelines into their hazardous liquid pipeline integrity management program under Part 195.452.

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Need to update your Public Awareness Program?

RCP can help develop your updated plan to meet API RP 1162 standards, and provide turnkey implementation, mail-outs, evaluations, and tracking of your program. For more information call or Click Here.

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Fire Safety Analysis Manual for LP-Gas Storage Facilities

With a consultant as a member of the NFPA, we at RCP Inc. try to benefit our newsletter recipients with the latest opportunities to enhance protections and to mitigate potential incidents/emergency conditions. The NFPA, National Propane Gas Association (NPGA), and the Propane Education and Research Council (PERC) have issued a new Fire Safety Analysis Manual, which provides forms and a step-by-step method for completing a written Fire Safety Analysis (FSA) as required in the 2001 edition of NFPA 58, LP-Gas Code. Complying with the important requirement for a written Fire Safety Analysis (FSA) for all LP-gas storage installations of more than 4,000 gallons water capacity (wc) can now be accomplished with greater ease. The following links are attached for access to the manual (and the appendix that has materials for specific follow up).

View the fire safety manual here       View the Appendix here

In addition to providing a valuable tool for system installers, operators of LPG facilities, and enforcement officials, the FSA Manual serves as a valuable reference for LPG operators. This is especially true for those who may be new to the LPG facility business or are unfamiliar with LP-gas facilities and the improvements made to product control features. The philosophy of NFPA 58 is to minimize fires by minimizing the accidental release of propane if an accident should occur, or in simple terms; no fuel, no fire. The manual does not address the following:

1. Marine terminals, refrigerated LP-Gas storage and the transportation of LP-gas either by rail tank cars or by cargo tank trucks. Marine terminals are governed by the OSHA Process Safety Management regulations and the US EPA Risk Management Plan regulations; refrigerated storage of LP-gas is a high-volume operation requiring special considerations; and, the transportation of LP-gas is addressed by Title 49 of the Code of Federal Regulations, Transportation;
   
2. Storage of LP-Gas in salt domes and caverns;
   
3. Installations ASME LP-gas containers on roofs of buildings. This type of installation is excluded from the scope of this manual (even though a FSA is required for such operations according to section 3.10.2.2 of the Code) primarily because of the rarity of such installations in the United States;
   
4. Cylinder filling operations at a dispensing facility, unless the storage threshold for LPGas has been exceeded, requiring an FSA to be prepared;
   
5. The use of facility employees performing as a �fire brigade.�

The above facilities may be required to comply with other safety analysis requirements.

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RCP Services Spotlight � Web Based Regulatory Compliance Management Systems

The Internet is coming to regulatory compliance and RCP is on the cutting edge of this technology. Combine RCP’s vast experience with developing comprehensive regulatory compliance programs with the capabilities of high speed Internet and you get a WORLD-CLASS COMPLIANCE MANAGEMENT SYSTEM, (CMS). This comprehensive system can neatly manage virtually any and all of your regulatory management requirements, including DOT, EPA, OSHA, USCG, as well as local & state-specific air, wastewater, hazardous waste, and safety requirements. Because RCP incorporates web-based technology, there are no IT issues to struggle through while getting started. The CMS program creates an institutional memory of the compliance history and ongoing compliance requirements, despite personnel or corporate turnover. If key personnel leave and other corporate changes take place, the system will still be in place and functioning. Records are maintained electronically and are accessible by any designated personnel in case of an agency inspection. The CMS is completely scalable, so RCP can manage a small division’s regulatory compliance and easily expand the program to handle an entire corporation’s regulatory management needs (including subsidiaries, etc.).

• DATA MANAGER allows data points to be recorded on a monthly, weekly, daily or hourly basis, perfect for air emissions and wastewater reporting. Information about the data collector and time of data collection is also gathered, creating a history of compliance activities pipelines.

• TASK MANAGER enables designated users to assign compliance tasks to others, track task progress, and collect other information such as time and cost required to complete tasks. The Task Manager component also generates automatic reminders and emails to notify users of important task deadlines.

• REPORT MANAGER allows RCP and other designated users to build standard reports required by local, state, and federal regulatory bodies. Routine agency reports are easily generated with this powerful component. The System also allows RCP and designated users to design custom reports to fulfill internal corporate reporting requirements. Custom reports can be generated on any data point in the System, numeric or non-numeric. Compliance data can then be compiled into HTML or Excel formatted reports.

• DOCUMENT MANAGER lets users store and track multiple versions of key compliance documents. Whether it’s a spreadsheet, PDF, or word processing document, users will be able to share or attach documents to any system object, including tasks. This tool is especially helpful in storing MSDSs, operating procedures, and inspection checklists.

Let RCP know if you are interested in a demonstration. RCP’s experienced professionals would be happy to show your team the power of web-based regulatory compliance. Please contact Laura Wager if you would like further information.

W. R. (Bill) Byrd, PE
President
RCP Inc.