May 2002 Issue

In This Issue

OCS/State Water Pipelines Jurisdiction

On April 5, 2002, RSPA published a proposed rule to address producer-operated natural gas and hazardous liquid pipelines that cross into State waters without first connecting to a transporting operator’s facility on the OCS. This proposed rule would also address the procedures by which producer operators could petition for approval to operate under RSPA regulations governing pipeline design, construction, operation, and maintenance. Comments on the subject of this proposed rule must be received on or before June 4, 2002 (docket RSPA-99-6132). For additional information, contact L.E. Herrick by telephone at (202) 366-5523, by fax at (202) 366-4566, by mail at U.S. Department of Transportation, RSPA, DPS-10, room 7128, 400 Seventh Street, SW., Washington, DC 20590, or via e-mail le.herrick@rspa.dot.gov.

The main proposed change in the rule would add the following exemption:

Pipelines on the Outer Continental Shelf that are producer-operated and cross into State waters without first connecting to a transporting operator’s facility, upstream (generally seaward) of the last valve on the last production facility (excluding pipeline risers and associated safety equipment). Producing operators may petition the Administrator, or designee, for approval to operate under RSPA regulations governing pipeline design, construction, operation, and maintenance

The complete text of the proposed rule is available on RCP’s website HERE.

Are your processes covered by OSHA Process Safety Management (PSM), EPA Risk Management Plan (RMP), or similar state regulations?

If so, RCP can assist with all aspects of PSM and RMP compliance assurance. RCP services range from single-process program assessments to complete program development for the entire facility. A common approach that many clients prefer can be separated into three-phases:

Phase 1 – Conduct PSM/RMP Assessment

RCP’s regulatory compliance specialists will team with your personnel to conduct a PSM/RMP assessment at your facility. These site visits typically are completed within 2 – 5 days depending upon the complexity of the covered processes. While at your facility, RCP specialists will:

Meet with the appropriate site personnel
Review and evaluate existing policies, procedures, and related information sources for PSM/RMP compliance
Develop site-specific recommendations to bring the facility within compliance and improve the effectiveness of the facility’s PSM/RMP programs.

Soon after the site visit is complete, RCP will submit a written assessment, including improvement opportunities as well as recommendations for implementation strategy.

Phase 2 – Develop/Update Selected PSM/RMP Program Elements

Based upon the results of the Phase I assessment, you may request that RCP develop and/or update selected PSM/RMP program elements. RCP will deliver new/updated programs of the selected PSM/RMP program elements for your final approval. RCP will take full advantage of specific client input, any existing programs, OSHA/EPA guidance, and industry practices to develop effective programs for your covered processes.

Phase 3 – Lead/Assist Selected PSM/RMP Activities

RCP regulatory specialists will facilitate or assist with the implementation of the activities identified in the newly developed/updated PSM/RMP programs. This may include:

Leading and documenting process hazard analysis
Developing management of change processes
Reviewing operation and maintenance procedures
Optimizing mechanical integrity programs
Conducting incident investigations
Conducting compliance audits
Training for site personnel

For additional information, contact Chris Foley @ (713) 655-8080

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.

Review Process for Projects Involving Historic Natural Gas Pipelines – Clarifications

On April 5, 2002, the Advisory Council on Historic Preservation (“Council”) published in the Federal Register a Notice of Exemption Regarding Historic Preservation Review Process for Projects Involving Historic Natural Gas Pipelines (67 FR 16364). Since then, several questions regarding the interpretation and application of the exemption have been brought to the Council’s attention. The Advisory Council on Historic Preservation has clarified its exemption from historic preservation review for projects involving historic natural gas pipelines by answering five questions that were posed after the exemption went into effect.

FOR FURTHER INFORMATION CONTACT: Address all questions about this clarification to Javier Marques, Office of General Counsel, Advisory Council on Historic Preservation, 1100 Pennsylvania Ave., NW., Suite 809, Washington,DC 20004. Telephone: 202-606-8503. Facsimile: 202-606-8672. E-mail: jmarques@achp.gov.

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.

Electronic Transmission and Storage of Drug Testing Information Federal Advisory Committee; Meeting

The Department of Transportation (DOT) Electronic Transmission and Storage of Drug Testing Information Federal Advisory Committee will meet in a public session on June 17, 2002, from 8 a.m. to 5 p.m. and on June 18, 2002, from 8 a.m. to 2 p.m. at the J.W. Marriott Hotel, 1331 Pennsylvania Avenue, NW., Washington, DC 20004. The purpose of the Committee is to recommend to the Department the type and level of electronic security that should be used for the transmission and storage of drug testing information, to assess the type of format and methodology that would be appropriate, and to recommend the level and type of electronic signature technology that would support the procedures used in the DOT drug and alcohol program.

The Department would be interested in hearing from the public about their experiences with use of electronic security systems, their effectiveness, problems with initiating such systems, initial cost and maintenance of the systems, practicality of use for small businesses, and any other factors that the Committee should review as part of its final recommendation to DOT. Please note that the Committee will not specifically address the “paperless laboratory” concept, since that process will require new rule making and will need to address issues such as use of electronic technology to fulfill legal requirements for evidential chain of custody procedures. The Committee will be looking at the broad application of electronic security technology as a general concept and not necessarily assessing specific current products on the market. However, entities wanting to address specific technologies and products may submit a short product description and performance data to the docket for the Committee’s review. The Committee meeting will be recorded and transcribed. Within a short time after the meeting, copies of the transcripts will be available on the DOT electronic docket.

FOR FURTHER INFORMATION CONTACT: Don Shatinsky, Office of Drug and Alcohol Policy and Compliance (ODAPC), Office of the Secretary, Department of Transportation, at voice (202) 366-3784, fax (202) 366-3897. A list of the committee members may be obtained from Minnie McDonald, ODAPC, at (202) 366-3784 and a copy will be posted in the docket.

DOT/OPS Progressing on Gas Integrity Management Rule

During a recent conference call concerning the gas pipeline Integrity Management Rule, Mike Israni of OPS stated that OPS is making good progress toward having a final rule in place by the end of 2002. He noted that a Notice of Proposed Rulemaking (NOPR) will precede it by mid-year. He also commented that the gas rule would address the use of Direct Assessment, but the final language on this topic was still under development. The final rule may include both prescriptive and performance based assessment criteria.

Mr. Israni also commented that OPS is developing a mapping rule for both liquid and gas pipelines that may be issued as a NOPR or as a final rule sometime later this year.

Integrity Management FAQ

Editor’s note: this and all other Frfequently Asked Questions about the Pipeline Integrity Management rule can be found at: http://primis.rspa.dot.gov/iim/faqs.htm. 12.6 Will OPS review operator notifications and formally respond to the operator? Will OPS communicate responses to specific company notifications to the broader industry?

OPS expects to review all notifications received from operators. A centralized process involving input from the OPS Regions will be used to assure thorough review. OPS will coordinate review of notifications affecting intrastate pipelines subject to the rule with the States, as appropriate.

A summary of each notification (omitting any sensitive information) will be posted on this web site, along with the status of their review (pending, accepted, denied). this will the public to see where operators are deviating from the rule, and will also allow operators to see notifications from other operators. Operators who submit notifications will receive e-mail informing them any time the review status of their notification changes. OPS will respond any time it determines that the actions proposed in a notification are unacceptable, describing the basis for its conclusion.

Operators subject to specific State rules and regulations that require notification must also comply with those requirements.

ILTA Presentation on Pipeline Regulations

Attending the Independent Liquid Terminals Association meeting at the Adams Mark hotel in Houston? Our president will make a presentation on pipeline safety regulations at 10:30 a.m. on the opening day, June 10th. We hope to see you there!

Conference on Emergency Reallocation of Natural Gas

On April 23, 2002 at 9 a.m. in the Commission Meeting Room (2C), staff from the Federal Energy Regulatory Commission (FERC or Commission) and from the Department of Energy (DOE) will convene a technical conference to begin discussions with interested parties on whether and how to clarify, expedite and streamline processes for reallocating natural gas among shippers, pipelines, and local distribution companies (LDCs) in today’s non-vertically integrated industry in the event of a disaster, whether natural or otherwise.

Commission and DOE staff will provide an overview of their current processes for emergency reallocation of natural gas. Commission staff will review FERC-related statutes and regulations and discuss the provisions related to reallocation and compensation contained in natural gas companies’ tariffs. DOE staff will review DOE-related statutes and regulations. Other participants, including relevant Federal agencies and representatives of industry, will describe their responsibilities and present their views.

In order to more clearly focus the discussion at the technical conference, other potential presenters should consider the following questions and present their responses at the conference:

What industry practices exist to respond to emergency-related reallocations of natural gas? Does the industry need additional flexibility to respond to such situations? What are the antitrust implications of shippers, pipelines, and LDCs coordinating reallocation response?
Are there any antitrust limitations that would hinder the ability of industry to communicate and coordinate logistical and other information in the event of an emergency? If so, can and should remedies be crafted to facilitate such communication and coordination?
What existing state processes are there which may be useful to coordinate emergency responses across a diffuse community of industry and regulatory interests ?
Are there any existing regulations, authorities, and business practice standards that could be relied on to ‡facilitate transporting emergency reallocations of natural gas among shippers and across multiple pipeline systems? Are these sufficient to ensure the timely and effective reallocation of available natural gas supplies? If not, what changes may be warranted? Are modifications to, or waivers of, regulatory requirements called for?
How can natural gas requirements be identified and prioritized so that during emergencies efforts can be made to ensure delivery of available natural gas supplies to the most important requirements? Is it necessary to establish a process to collect and assess this information and keep it up-to-date in anticipation of future emergencies?
How do we ensure adequate emergency coordination among pipeline operators?
What types of decisions would natural gas pipeline operators need from regulators’and in what time frames would those decisions be required’to ensure adequate emergency response? What are the antitrust implications of pipeline companies coordinating these decisions? How should compensation be addressed?
What information on emergency status is available in real-time to keep relevant government officials informed? What additional information might regulators require to make appropriate time-critical decisions in an emergency?
What types of events or contingencies is the industry already prepared to face? And what types of contingencies is the industry not yet prepared to face? What should our expectations be as to what is reasonable to accomplish and expect?

FERC will issue further details on the conference, including the agenda and a list of participants, as plans evolve. For additional information, please contact Carol Connors in the Office of External Affairs at carol.connors@ferc.gov.

Conference on Emergency Reconstruction of Interstate Natural Gas Infrastructure

On April 22, 2002 at 9 a.m. in the Commission Meeting Room (2C), staff from the Federal Energy Regulatory Commission (Commission) and from the Office of Pipeline Safety (OPS) of the Department of Transportation will convene a technical conference to begin discussions with interested parties on whether and how to clarify, expedite and streamline permitting and approvals for interstate pipeline reconstruction in the event of disaster, whether natural or otherwise.

Commission and OPS staff will provide an overview of their current regulatory processes and recent experiences for dealing with emergency situations. Additionally, Commission and OPS staff will facilitate discussions on possible approaches to expedite permitting emergency reconstruction of natural gas facilities. Other participants, including relevant Federal agencies and representatives of industry, will describe their responsibilities and present their views.