DOT Pipeline Compliance News

August 2024 Issue

In This Issue

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Upcoming PHMSA Integrity Management Risk Modeling Workshop in Houston

PHMSA will host a two-day Integrity Management Risk Modeling Workshop on October 23-24, 2024, in Houston, TX. The event will highlight advancements in risk modeling for both pipeline and non-pipeline systems. More details will be shared soon.

This workshop offers a great opportunity to:

• Discuss the latest risk modeling techniques.
• Learn how pipeline operators are applying these methods to improve risk analysis.
• Explore enhancements in risk models and their practical integration.
• Gather public input on the newest risk modeling developments.

This is a must-attend event for anyone in pipeline safety and risk management, providing a platform to share and learn from industry innovations. Don’t miss your chance to participate!

Registration Deadline: October 11, 2024
To register:

1. Visit: PHMSA Risk Modeling Workshop
2. Select “Register” next to 2024 Risk Modeling Public Workshop.
3. If you don’t have a Login.gov account, create one.
4. Choose your registration type (in-person or virtual).
5. Complete the required info and confirm your registration.

For any questions, contact Lee Cooper.

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Standards Update Final Rule – Stay of Enforcement

On April 29, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA) published a final rule titled “Pipeline Safety: Periodic Updates of Regulatory References to Technical Standards and Miscellaneous Amendments,” effective June 28, 2024. This rule updates the Federal Pipeline Safety Regulations by incorporating over 20 new or revised industry technical standards in 49 CFR parts 192 and 195. Following its publication, several industry associations, including GPA Midstream Association and the American Petroleum Institute, filed petitions for reconsideration and motions to stay the rule’s effective date, citing the need for more time to comply with the new standards to avoid significant disruptions and costs.

In response, PHMSA has issued a notice of limited enforcement discretion, allowing operators to comply with either the updated standards or the previous ones until January 1, 2025. This flexibility aims to help pipeline operators transition smoothly during the 2024 construction season while maintaining safety standards. PHMSA also recommends that state partners adopt similar enforcement discretion during this period.

For a copy of this stay of enforcement notice, please message Jessica Foley.

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Valve Rule Correction

The Pipeline and Hazardous Materials Safety Administration (PHMSA) has announced a significant update under Docket No. PHMSA-2013-0255, identified as Amendment No. 192-136. This amendment follows a Petition for Reconsideration filed by the American Petroleum Institute and GPA Midstream Association on August 23, 2023, and aims to clarify the applicability of certain regulations to gas gathering lines.

Key Changes:

1. Revisions Following Petition: PHMSA is revising § 192.617(b) through (d) to remove references to Type A gas gathering lines and clarify that these provisions are inapplicable to gas gathering lines.
2. Clarification on Applicability: PHMSA is adding a disclaimer to § 192.635, explicitly stating that this section does not apply to gas gathering lines, aligning with the revised definition for “notification of potential rupture” at § 192.3.
3. Enhanced Safety Measures: New protocols introduced for natural gas pipelines to improve overall safety.
4. Stricter Compliance Requirements: Pipeline operators must now adhere to more stringent compliance measures.
5. Advanced Monitoring: Implementation of advanced monitoring technologies for better risk management and early detection of issues.
6. Improved Maintenance Standards: Updated maintenance requirements to ensure pipeline integrity and prevent failures.

For a copy of this valve rule correction, please message Jessica Foley.

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NTSB Issues Safety Alert Emphasizing Adoption of API RP 1173

The National Transportation Safety Board (NTSB) has recently issued a Safety Alert (SA095 July 2024), encouraging all pipeline operators to adopt and implement API RP 1173 Pipeline Safety Management System (PSMS) Requirements. The NTSB recognizes that over 85% of pipeline industry mileage has adopted PSMS but wants further adoption among smaller operators. Further, the NTSB encourages the following:

• Implement a robust PSMS as described in API RP 1173.
  • Pipeline Safety Management System Requirements provides guidance for operators to establish a system to continuously track and improve safety.
• For those who have incorporated PSMS into their practices, continue to improve operations and training.
  • Pipeline operators with PSMS cannot be complacent. One of the hallmarks of a good PSMS is that it continuously evolves and improves safety programs.
• Support revisions to API RP 1173 and other guidance as it is developed to include small operators and contractors in their efforts to establish a PSMS.
  • According to the 2022 Pipeline SMS Annual Report, “Last year also featured important initiatives to support small operator and contractor implementation of RP 1173 along their journey of continuous improvement and the combined vision of One Industry, One Team, One Mission, Pipeline Safety.
• With a PSMS, operators can ensure pipelines are designed, constructed, operated, and maintained in a way that complies with more than the minimum safety standards found in regulations.
  • Experience has shown that using a PSMS can be effective and result in significant reductions of serious pipeline accidents each year.

For a copy of the Safety Alert and to speak with RCP about how we support PSMS implementations and continuous improvement efforts across the pipeline industry, contact Jessica Foley.

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API Pipeline Information eXchange (PIX) Workshop

The American Petroleum Institute (API) is sponsoring the annual Pipeline Information eXchange (PIX) on November 6, 2024, at the JW Marriott Houston Downtown. The event runs from 9:00 am to 5:00 pm, followed by a reception, and is exclusive to pipeline operators. PIX offers a platform for sharing information and lessons on pipeline safety, incidents, and best practices.

API is also hosting a half-day pipeline safety workshop on November 5, 2024, from 1:00 pm to 5:00 pm at the same venue. This workshop, open to all, will cover best practices for corrosion assessment and integrity management.

Please Note: The PIX on November 6 is for operators only. The workshop on November 5 is open to all interested participants. 

Click here to register for this workshop.

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Featured Service

TaskOp Highlight: Underground Gas Storage

RCP has earned a worldwide reputation for providing professional engineering services and regulatory expertise to oil and gas operators, including underground gas storage in depleted reservoirs, aquifers and salt caverns.

We have the RESOURCES, SOFTWARE and the KNOWLEDGE to assist clients with building, implementing, and improving comprehensive operational integrity management programs in response to the PHMSA rule incorporating API RP 1171/1170 v2 (Jan. 1st, 2026) on underground gas storage.

Experienced Resources

• Highly respected underground storage industry & risk management SMEs
• Professional engineering support
• Knowledgeable technical standards developers
• Regulatory expertise

Asset Management Tools

• Gap assessment protocols
• Comprehensive risk analysis program through software
  • Out-of-the-box risk model designed by RCP SMEs
  • Operator-specific risk models
• Full-featured workflow & asset management software
  • Track, verify and complete all work done on a well
  • Wellsite/valve inspections, annulus pressure, well logging, well swabbing, capital projects, etc.

Gap Analysis/Effective Evaluation

• PHMSA Final Rule: Safety of Underground Natural Gas Storage
• API RP 1171/1170 v2
• PHMSA Advisory Bulletins
• State-Specific Regulations

Process Development and Continuous Improvement

• Storage risk management plan
• Site-specific operations & integrity standards
• Key performance indicators

Risk Analysis Model

• API RP 1171 v2, Section 8
  • Out-of-the-box risk model designed by RCP SMEs
  • Configurable to client and/or state needs
  • Separate models for depleted reservoirs and caverns
• Deterministic Approach
  • SME/Documentation
  • Data (ex. Well Log)
• Captures documents used in risk analysis and sub-surface safety valve assessment tools
• Customizable queries & reporting, including a fully revamped risk analysis dashboard experience to easily see what the risk model is trying to tell you

Asset Integrity Assessment & Remediation Progress Tracking

• Asset change management
• Traceable, verifiable, and complete record management
• Audit-ready software
• Schedule and progress reporting
  • Integrity assessment and repairs
  • Regulatory inspections
  • Preventative Maintenance
  • Capital Projects
  • Well Logging
• Data capture & analysis
  • Data trends for all the inspection data you are capturing
  • Data overlays to help make better, actionable decisions
  • Well log comparison (ex. corrosion rate)
• Documentation linkage to work activity

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Q&A Section

Do you have questions? RCP’s SMEs have the answers. Information will be posted here for questions we often get from clients or discussions we have with regulators regarding interpretations and pending regulatory deadlines.

Q:  How can TaskOp help an Operator prepare for an audit?

A: The TaskOp Audit module can streamline your audit preparation by isolating data relevant to the auditor’s specific questions. It organizes and presents this data in a clear, digital format, which helps reduce the time required for the audit. This targeted approach ensures that you can quickly and efficiently provide all the necessary information, making the audit process smoother and more efficient.

Ask the Experts

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Did you know?

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The Enforcement Corner

The Enforcement Corner summarizes recent PHMSA enforcement actions, indicating where PHMSA is putting its enforcement efforts and the fines they are proposing for various types of violations.

In June 2024, PHMSA issued 3 NOAs, 6 NOPVs, and 5 WLs accompanied by $232,000 in proposed fines. Significant proposed fines were attributed to the following code sections:

• $29,700 – 49 CFR 199.105(b)(1) – Drug Testing
• $29,700 – 49 CFR 199.225(a)(1) – Drug Testing
• $11,100 – 49 CFR 195.446(c)(4) – Control Room Management
• $30,100 – 49 CFR 195.446(c)(3) – Control Room Management
• $52,800 – 49 CFR 195.571 – Cathodic Protection
• $19,100 – 49 CFR 195.54(a) – Accident Reports
• $59,500 – 49 CFR 195.577(a) – Interference Currents

Please note:

1. Pipeline operators may disagree in whole or in part with each proposed violation cited by PHMSA. 
2. Proposed Civil Penalties (PCP) may be reduced or eliminated before an enforcement action becomes final.
3. A Corrective Action Order (CAO) usually addresses urgent situations arising out of an accident, spill, or other significant, immediate, or imminent safety or environmental concerns.
4. A Notice of Amendment (NOA) is frequently a result of a difference of opinion regarding written procedure requirements.
5. A Notice of Proposed Safety Order (PSO) addresses pipeline integrity risks that may not constitute a hazardous facility requiring immediate corrective action (see Corrective Action Order described above), but do need to be addressed over time.
6. A Notice of Probable Violation (NOPV) is not proof that a violation actually occurred.
7. Proposed Compliance Orders (PCO) frequently document actions the pipeline operator already planned to do.
8. Warning Letter (WL) is an official notice by PHMSA that an operator needs to make improvements but that no further enforcement is proposed for those findings at this time.

RCP maintains a detailed database of all PHMSA enforcement actions dating back to 2007 and is routinely asked for data analysis of various enforcement actions. For more information on how RCP can assist with enforcement action data analysis services, contact Jessica Foley.

Need to respond to a PHMSA enforcement action?
Need to know if your enforcement action is an outlier, or par for the course? 
RCP maintains a detailed database of all PHMSA enforcement actions and their resolution which enables us to compare and contrast individual enforcement actions to nationwide actions and trends.  We can help put things into context to ensure an effective reply for each citation.  For more information on how RCP can assist with enforcement action data analysis services, contact Jessica Foley.

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PSI Training Schedule

DATE	COURSE	FEE
August 4-6, 2026	DOT Pipeline Compliance Workshop (49 CFR 191, 192, 194, 195 & 199)	$2,150
On-Demand	DOT Pipeline Compliance Workshop (49 CFR 191, 192, 194, 195 & 199)	$2,150
On-Demand	Fundamentals of Pipeline Pressure Testing (Gas & Liquid Pipelines)	$1,200

WEBINAR RECORDING
Pipeline Safety: Unpacking the Class Location Change Requirements

Thank you to everyone who attended and participated in this informative webinar. The session recording is posted to our YouTube channel. Please watch, like, and subscribe to our channel!

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You asked and we listened!

Advanced DOT Pipeline Compliance Workshop is on the calendar!

This intensive and interactive 3-day, in-person workshop is designed for those who have previously completed our DOT Pipeline Compliance Workshop and are ready to take their knowledge to the next level.

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New Workshop Alert!

Prepare Your Team for Pipeline Safety Audits with Confidence!

Our 3-day Pipeline Safety Audit Workshop is tailored for professionals responsible for the safe operation of hazardous liquid and natural gas pipelines. Designed for groups of 10-15 participants, this interactive training…

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We would welcome the opportunity to discuss our services with you.

Sincerely,

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