February 2024 Issue
In This Issue
- NTSB has issued its Final Incident Report on the 2021 San Pedro Bay Crude Oil Pipeline Incident
- PHMSA Delivers Proposed Rule On Carbon Pipeline Safety To White House OMB
- PHMSA’s Enforcement Discretion: Onshore Gas Transmission Pipeline Regulations Update and Relief Period Extension
- PHMSA Form Updates
- PHMSA Issues FAQ for RIN 2 Gas Transmission Rule
- 2024 D&A Random Rate, MIS Reporting Data
- Unlocking the Power of Legacy Knowledge: A Knowledge Transfer Success Story
- Q&A Section
- Did you know?
- The Enforcement Corner
- 2024 Conference News
- 2024 PSI Training Schedule
NTSB has issued its Final Incident Report on the 2021 San Pedro Bay Crude Oil Pipeline Incident
In its final report, NTSB has recommended PHMSA to encourage operators to implement PSMS. The following recommendation was approved by the NTSB Board to the Pipeline and Hazardous Materials Safety Administration.
“Issue an advisory bulletin to all Pipeline and Hazardous Materials Safety Administration-regulated pipeline owners and operators, promoting the benefits of pipeline safety management systems and asking them to develop and implement such a system based on American Petroleum Institute Recommended Practice 1173. (P-24-2)”
NTSB has indicated that it intends to follow up with additional correspondence that will (1) give kudos to operators who have voluntarily implemented PSMS, and (2) ask operators who have not implemented PSMS to do so.
For a copy of the incident report, please contact Jessica Foley.
PHMSA Delivers Proposed Rule On Carbon Pipeline Safety To White House OMB
“The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration on Feb. 2 delivered a proposed rule to the White House Office of Management and Budget focused on improving the safety of carbon dioxide pipelines. OMB review marks a final stage before a proposed rule is released for public comment.” Erin Voegele, Carbon Capture Magazine.
This Proposed rulemaking would amend PHMSA’s Pipeline Safety Regulations (49 CFR parts 190-199) to adopt revisions that would enhance the safe transportation of carbon dioxide by pipelines to accommodate an anticipated increase in the number of carbon dioxide pipelines and volume of carbon dioxide transported. Also, this proposed rulemaking would include requirements related to emergency preparedness and response for carbon dioxide.
For more information about this topic, please contact Jessica Foley.
PHMSA’s Enforcement Discretion: Onshore Gas Transmission Pipeline Regulations Update and Relief Period Extension
PHMSA will exercise enforcement discretion for onshore gas transmission pipelines that entered into service after August 24, 2022, and will not initiate enforcement action for an additional nine (9) months (to February 24, 2024) with the exception of the following:
- §§ 192.917(b) applies to data gathering and integration, and 192.13(d) pertains to the Management of Change
- §§ 192.319 establishes coating evaluation and records retention requirements for construction projects of 1,000 ft or more, while 192.461 establishes coating assessment requirements for repair or replacement projects of 1,000 ft or more. Additionally, 192.613 establishes requirements for inspection after extreme weather events
While these enforcement discretion actions provide limited relief in the form of an extension, pipeline operators should initiate their program updates as soon as practicable, as RIN 2 requirements are robust and require careful and thorough Operations and Maintenance and Integrity Management Program updates.
For more information regarding this enforcement discretion, please contact Jessica Foley.
PHMSA Form Updates
PHMSA has made changes to several forms as listed below.
PHMSA updated these forms on January 10, 2024
- OpID Assignment Request F1000.1
- Liquefied Natural Gas Facilities Annual Report F7100.3-1
- Underground Natural Gas Storage Annual Report Instructions F7100.4-1
PHMSA updated these forms on January 2 & 3, 2024
- PHMSA Drug Alcohol IA Question Set
- PHMSA Gas Distribution IA Question Set
- PHMSA Gas Transmission IA Question Set
- PHMSA Hazardous Liquid IA Question Set
- PHMSA LNG IA Question Set
- Gas Transmission and Gathering Systems Annual Report F7100.2-1
- Gas Transmission and Gathering Systems Annual Instructions F7100.2-1
You can download copies of these forms here.
PHMSA Issues FAQ for RIN 2 Gas Transmission Rule
PHMSA has posted new Frequently Asked Questions (FAQ) related to “Pipeline Safety: Safety of Gas Transmission Pipelines: Repair Criteria, Integrity Management Improvements, Cathodic Protection, Management of Change, and Other Related Amendments” Rule (87 FR 52224 (Aug. 24, 2022)), as amended by 88 FR 24708 (Apr. 24, 2023) (collectively, the “2022 Gas Transmission Final Rule”).
The FAQ addresses the following questions:
- When evaluating a pipeline to determine if it is a “transmission line,” how should an operator consider the phrase “a connected series of pipelines” in § 192.3?
- May an “in-line inspection” be performed using free-swimming tools?
- What data do I consider when identifying and evaluating threats under § 192.917? What data is “pertinent”?
- Section § 192.465 references two terms for different sources of external cathodic causes to investigate and mitigate — non-systemic and systemic causes — what’s the difference?
- What remediation schedule should be implemented for a monitored condition under § 192.933(d)(3) with indications it “is expected to grow to dimensions” prior to the next scheduled assessment? How do I judge whether a monitored condition is expected to grow in dimensions?
- The monitored conditions at §§ 192.714(d)(3) and 192.933(d)(3) include that “critical strain levels are not exceeded.” How should I treat a condition if the critical strain levels of my anomaly are exceeded?
Per PHMSA’s release:
“PHMSA provides FAQ to help the public understand how to comply with the regulations. FAQ are not substantive rules, do not have the force or effect of law, and do not create new legal obligations. An operator who is able to demonstrate that it is acting in accordance with FAQ is likely to be able to demonstrate compliance with the relevant regulations. If a pipeline operator chooses not to follow FAQ, the operator must be able to demonstrate the operator’s conduct complies with the regulations.”
Click here to download a copy of these FAQ.
RCP has been actively assisting our clients with developing effective programs to comply with the recently finalized gas transmission and gathering rules. For more information, contact Jessica Foley.
2024 D&A Random Rate, MIS Reporting Data
Docket No. PHMSA-2023-0116
On December 8th, 2023, PHMSA published in the Federal Register a notice announcing that it has determined the minimum random drug testing rate for covered employees will remain at 25 percent during calendar year 2024. Of special note, for calendar year 2023 reporting, DOT is introducing MFA login procedures for submitting D&A testing data into the DAMIS database. This notice also explains how pipeline operators and contractors will obtain MFA login information. The effective dates of the current January 1, 2024, through December 31, 2024.
For a copy of the published notice, please message Jessica Foley.
Unlocking the Power of Legacy Knowledge: A Knowledge Transfer Success Story
In 2023, RCP had the opportunity to collaborate with an Operator on a vital knowledge transfer project, aiming to preserve valuable insights from the client’s retiring staff. Below is a summary of the effort in the form of a case study:
This case study illuminates how ‘Operator,’ a prominent utility company, effectively confronted the challenge of retaining and leveraging knowledge from departing employees. Faced with the imminent loss of crucial expertise, ‘Operator’ initiated a robust knowledge transfer program. The comprehensive approach encompassed identifying key knowledge domains, fostering collaborative mentorship and documentation processes, revising standard operating procedures, and incorporating regular feedback and evaluation. The outcomes were transformative, resulting in a seamless transition, heightened productivity, enhanced collaboration, significant cost savings, and a newfound competitive advantage. The success of this initiative underscores the critical importance of strategic investment in knowledge preservation for sustained success amidst the dynamism of today’s business environment. The unwavering commitment to knowledge transfer not only ensured a smooth transition during a pivotal retirement but also elevated the company’s overall efficiency and competitiveness.
To read the full case study and for details of how RCP can help facilitate a knowledge transfer effort for you, please contact Jessica Foley.
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: If a liquid pipeline operator installs the wrong style of gasket in a flange during a maintenance repair, and then the joint leaks 1 barrel of oil during startup, is that considered a maintenance-related release? Does the spill need to be reported?
A: Liquid pipelines report spills larger than 5 gallons, unless the release is “resulting from a pipeline maintenance activity”, in which case the volume threshold is 5 barrels. To qualify for the higher maintenance-related reporting threshold, the spill must occur as part of the maintenance activity. Installing the wrong style of gasket is due to operator error and falls under the 5 gallon, not the 5 barrel, reporting threshold.
Ask the Experts
Do you have a question for the experts at RCP? Submit your question using this form. If your question is selected for a future newsletter, you will be eligible for a gift of your choice from RCP’s online Store.
Upcoming Deadlines:
- The deadline to submit written comments in response to PHMSA’s forthcoming NPRM on Pipeline Safety: Safety of Gas Distribution Pipeline and Other Pipeline Safety Initiatives will have 60 days from the date of publication in the Federal Register. Comments may be filed at https://www.regulations.gov/ Docket No. PHMSA-2021-0046.
- And as a reminder, the “Stay of Enforcement” does not mean regulators don’t expect work toward getting compliance activities in place can be ignored.
If we can help, contact Jessica Foley.
Did you know?
Expanding American Infrastructure Helps Achieve Climate Progress!
#DidYouKnow that new pipelines could help further reduce emissions? Pipelines are key to safely capturing and storing carbon to keep it away from our air. To advance lower carbon technologies, it’s important that America expands modern infrastructure and accelerates energy innovations instead of delaying technologies and restricting needed infrastructure investments that can help achieve climate progress.
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 December 2023, PHMSA issued 7 NOAs, 8 NOPVs, and 7 WLs accompanied by $527,934 in proposed fines. Significant proposed fines were attributed to the following code sections:
- $225,134 49 CFR 192.605(a) Procedure Manual
- $20,400 49 CFR 40.25(a) Drug Testing
- $21,200 49 CFR 199.105(e) Drug Tests Required
- $65,900 49 CFR 195.452(f)(3) Integrity Management
- $35,300 49 CFR 192.355(b)(2) Customer Meters & Regulators
- $46,500 49 CFR 192.481(c) Atmospheric Corrosion Control
- $63,300 49 CFR 195.428(a) Overpressure Safety Devices
- $50,200 49 CFR 195.583(a) Atmospheric Corrosion Control
Please note:
- Pipeline operators may disagree in whole or in part with each proposed violation cited by PHMSA.
- Proposed Civil Penalties (PCP) may be reduced or eliminated before an enforcement action becomes final.
- 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.
- A Notice of Amendment (NOA) is frequently a result of a difference of opinion regarding written procedure requirements.
- A Notice of Proposed Safety Order (NOPSO) 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.
- A Notice of Probable Violation (NOPV) is not proof that a violation actually occurred.
- Proposed Compliance Orders (PCO) frequently document actions the pipeline operator already planned to do.
- 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.
2024 Conference News
API Pipeline Conference and Expo: Pipeline, Control Room and Cybernetics
May 6-May 8, 2024 | Hyatt Regency Salt Lake City | Salt Lake City, Utah
Join over 700 industry professionals in Salt Lake City, Utah from May 6-8, 2024, as we explore the evolving landscape of energy sustainability and security. Discover how oil and gas companies are pioneering innovative solutions to climate challenges, sustaining resources today while securing the future through cutting-edge business models. Be sure to visit the RCP booth #306 to visit with our SMEs and snag some swag! Don’t miss out on this opportunity to connect, collaborate, and learn with global leaders shaping the future of energy evolution.
Click here to register for the API Pipeline Conference and Expo: Pipeline, Control Room and Cybernetics.
RCP Speakers:
Mr. Chris Foley, VP “What’s new with 192?”
Join Chris Foley as he discusses the latest changes to CFR 192, governing the transportation of natural gas by pipeline. Discover the updated safety measures, regulatory compliance requirements, and emerging challenges in the industry. Don’t miss this opportunity to stay informed and ensure the safety and reliability of natural gas transportation infrastructure.
When: Monday, May 6 at 2:50 PM | Where: Showbird
Super DUG
May 15-May 17, 2024 | Fort Worth Convention Center | Fort Worth, TX
Don’t miss SUPER DUG 2024, the premier event focusing on energy production in the U.S. shale plays, including the Permian, Eagle Ford, Midcontinent, Bakken, and the Rockies. Following last year’s successful launch, this year’s event is set to be even bigger, with over 2,000 industry professionals, 130+ exhibitors, and 10+ hours of networking opportunities. Connect with key decision-makers from public and private producers, midstream operators, and leading service and technology providers.
Click here to register for Super Dug 2024!
TGA Annual Operations and Management Meeting
June 23-June 27, 2024 | Margaritaville Lake Resort | Montgomery, TX
The TGA Annual Operations and Management Meeting, celebrating its 50th anniversary, stands as the premier event for industry professionals to explore cutting-edge trends and best practices in operations and management. Through engaging discussions, workshops, and networking opportunities, attendees collaborate to drive organizational excellence. Join us for insightful presentations and interactive sessions as we commemorate our rich history and shape the future of operational success together.
Click here to register for TGA’s Annual Operations and Management Meeting.
Florida Natural Gas Association (FNGA) Symposium & Expo
June 24-June 26, 2024 | The Westin Cape Coral Resort at Marina Village | Cape Coral, FL
Discover the latest developments in Florida and gain insights into prominent industry figures at the Florida Natural Gas Association Symposium & Expo. Engage with thought-provoking content presented by esteemed guests and participate in industry discussions designed to enhance your expertise. This event offers invaluable networking opportunities to foster connections crucial for sustaining natural gas’ prominence in energy dialogues. Explore a diverse array of industry suppliers showcasing cutting-edge technologies and innovations essential for efficient natural gas delivery to consumers. Join us to stay informed, connected, and at the forefront of advancements in the natural gas industry.
Click here to register for the FNGA Symposium & Expo.
SGA Operations Conference
July 22-July 24, 2024 | DoubleTree by Hilton Nashville Downtown | Nashville, TN
The SGA Operations Conference is a gathering for professionals in the natural gas industry, specifically tailored for individual contributors to the natural gas industry operations space. This conference provides a platform for industry leaders to share insights, discuss best practices, and explore the latest advancements in operations, asset management, gas control, and technology.
Click here to register for the SGA Operations Conference.