DOT Pipeline Compliance News

September 2006 Issue

In This Issue

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DOT Pipeline Compliance Workshop – October 17, 2006

Join us at our Houston office for an informative, lively, and interactive workshop on DOT Pipeline Compliance. This workshop has been attended by hundreds of pipeline personnel, with excellent feedback. The workshop provides an overview of the DOT pipeline regulations, and is appropriate for people who are new to pipeline regulations, or who could use a refresher.

Introduction to DOT/PHMSA Pipeline Regulations

• Agency jurisdictions – what does DOT/PHMSA regulate anyway?
  • Important definitions
  • Important letters of clarification from the agency
  • Recent EPA/DOI memorandums of understanding
• State and Federal program variations, roles and responsibilities
• Gas and liquid design, construction, operations, maintenance, and emergency response requirements
• Spill response planning requirements
• How to monitor rulemaking activity and stay current with your compliance program
• Discussion of potential rulemaking – liquid gathering rules, controller certification, etc.

Your Instructor: As principal of RCP, Mr. Byrd enjoys a solid reputation for working with the public, corporate management, and regulatory agencies to resolve complex regulatory issues. He serves on various industry association committees, works as an expert witness and consulting expert, and is frequently called upon to comment on current or proposed rulemakings at public and private meetings and conferences.

For additional information, including a seminar brochure, go to our website here.

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New Safety Requirements for Rural Low-Stress and Gathering Pipelines in Unusually Sensitive Areas

The Pipeline and Hazardous Materials Safety Administration (PHMSA) has proposed new legislation that may have a profound effect on certain liquid pipeline operators. Current regulations exempt onshore liquid gathering lines and low-stress lines in rural areas from all or portions of the Part 195 regulatory requirements.

This new proposal extends pipeline safety regulations to those rural gathering lines with the following characteristics (aka Regulated Rural Gathering Line):

• Onshore rural gathering pipelines with a nominal diameter between 6 5/8″ and 8 5/8″;
• Operates at a maximum operating pressure corresponding to a stress level greater than 20% of SMYS or, if the stress level is unknown or the pipeline is not constructed of steel, at a pressure greater than 125 psig; and
• Is located in or within 1/4-mile of an unusually sensitive area.

This new proposal also extends pipeline safety regulations to those rural pipelines with the following characteristics (aka Regulated Low-Stress Line in a Rural Area):

• Onshore rural pipelines with a nominal outside diameter of 8 5/8″ or more;
• Is located in or within 1/4-mile of an unusually sensitive area.
• Operates at a maximum operating pressure corresponding to a stress level equal to or less than 20% of SMYS or, if the stress level is unknown or the pipeline is not constructed of steel, at a pressure greater than 125 psig;

The new requirements for these pipelines will include:

• Identify all regulated rural gathering segments, regulated low-stress lines in rural areas, and monitor for new unusually sensitive areas
• Design, installation, construction, initial inspection, and initial testing
• Reporting and recordkeeping
• Establishment of maximum operating pressure
• Installation and maintenance of line markers
• Establish and apply public education and damage prevention programs
• Corrosion control and remediation
• Operator qualification program

Additional requirements for Regulated Low-Stress Lines in Rural Areas include:

• Integrity management program
• Leak detection

PHMSA is accepting written comments until November 6, 2006 on the proposed rule. For more information, click here.

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Will the Proposed Safety Requirements for Rural Low-Stress and Gathering Pipelines in Unusually Sensitive Areas affect your pipeline operations?

RCP can conduct a detailed analysis of your liquid pipelines to determine how this legislation will affect your company. For more information, contact Jessica Roger.

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FERC Damage Reporting Revision

Effective August 29, 2006, the Federal Energy Regulatory Commission has amended its regulations concerning reporting requirements related to facility damage. This Final Rule is based upon experience following Hurricanes Katrina and Rita, where the Commission determined that it lacked vital information regarding the physical condition of facilities affecting operation of the pipeline grid even though it had been kept informed of serious service interruptions as the regulations required. In the past, FERC only required pipeline companies to report service interruptions and therefore did not require natural gas companies to report significant damage due to hurricanes, where service interruptions were avoided by rerouting gas supplies. In order to effectively monitor the nation’s natural gas infrastructure during crisis situations, including natural disasters and terrorist activity, the Commission has determined that additional reporting requirements are necessary. More information is available by clicking here.

To find out more about how these new reporting requirements will affect you, please contact Jessica Roger.

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New Assessment Appeal Process Proposed by TRRC

The Texas Railroad Commission has proposed new regulations, 16 TAC §§7.6001-7.6007, new Subchapter F, pertaining to the appeal process for pipeline owners and/or operators regarding a city’s assessment of an annual charge. These new provisions would give the Railroad Commission exclusive jurisdiction to determine whether a city’s annual charge is authorized under Texas Natural Resources Code, §117.102(b)(1), or Texas Utilities Code, §121.2025(b)(1). The earliest possible date of adoption of these rules is September 24, 2006. For more information on this proposed legislation, please click here.

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Changes to the Uniform Hazardous Waste Manifest – Effective 9/5/2006

Beginning on September 5, 2006, the EPA will require all waste-handling organizations to use the new version of the Uniform Hazardous Waste Manifest. This form is used to track hazardous waste from a generator’s site to the site of its disposition. According to the EPA, the changes have two main objectives:

• To establish a single form that can be used nationwide, thereby reducing the burden on transporters who operate in more than one state, and
• To improve the tracking of “problem wastes”, which include those wastes that facilities have rejected, waste residues from containers not completely emptied, or wastes entering or leaving the United States.

Complete information regarding these changes, including information on completing the new manifest and where to obtain copies, can be found by clicking here.

For help on how these changes will apply to your organization, please contact Jessica Roger.

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Need to make sure your Public Awareness Program meets API RP 1162 standards?

RCP can conduct a gap analysis of your current program that includes a self assessment of your Public Awareness Programs. This final product will help you to meet API RP 1162 standards. We can provide turnkey implementation, mail-outs, evaluations, and tracking of your program. For more information, call or click here.

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Minor Modifications to Texas Integrity Management Rule

§8.101 Pipeline Integrity Assessment and Management Plans for Natural Gas and Hazardous Liquids Pipelines

(a) This section does not apply to plastic pipelines.
(b) By February 1, 2002, operators of intrastate transmission and gathering lines subject to the requirements of 49 CFR Part 192 or 49 CFR Part 195 shall have designated to the Commission on a system-by-system or segment within each system basis whether the pipeline operator has chosen to use the risk-based analysis pursuant to paragraph (1) of this subsection or the prescriptive plan authorized by paragraph (2) of this subsection. Hazardous liquid pipeline operators using the risk-based plan shall complete at least 50% of the initial assessments by January 1, 2006, and the remainder by January 1, 2011; operators using the prescriptive plan shall complete the initial integrity testing by January 1, 2006, or January 1, 2011, pursuant to the requirements of paragraph (2) of this subsection. Natural gas pipeline operators using the risk-based plan shall complete at least 50% of the initial assessments by December 17, 2007, and the remainder by December 17, 2012; operators using the prescriptive plan shall complete the initial integrity testing by December 17, 2007, or December 17, 2012, pursuant to the requirements of paragraph (2) of this subsection.
(1) The risk-based plan shall contain at a minimum:
(A)
(B)
(C) assessment of pipeline integrity using at least one of the following methods appropriate for each segment:
(i) in-line inspection;
(ii) pressure test;
(iii) direct assessment after approval by the <<Safety Division director;>> {Commission,} or
(iv) other technology or assessment methodology not specifically listed in this paragraph after approval by the <<Safety Division director.>> {Commission.}
(c)
(d)
(e) Operators of pipelines for which an integrity assessment was performed prior to <<April 30, 2001 (the effective date of this rule),  >> {the effective date of this proposed new rule} shall not be required to implement a new plan as long as the original assessment meets the minimum requirements of this section.

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Has the new Gas Gathering definition affected your pipelines?

RCP can conduct a detailed analysis of your gas pipelines to determine end points of production and gathering based upon the recently finalized definition of gas gathering pipelines. The analysis will also determine whether your gathering pipelines are regulated and whether they are classified as Type A or B regulated gas gathering. For more information, click here.

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Reminder about pending deadline to submit Public Awareness Programs to PHMSA

An advisory (ADB-06-02) was issued by the Pipeline and Hazardous materials Safety Administration (PHMSA) in the Federal Register (Volume 71, Number 116) on June 16, 2006. This advisory informs pipeline operators how to submit their written public awareness programs for review.

• PHMSA has elected to use a clearinghouse approach for reviewing interstate and many intrastate operator programs.
• The following state pipeline safety agencies have decided to conduct independent reviews of the public awareness programs of at least some intrastate operators. Intrastate Operators from the following states should review the advisory bulletin in detail or contact the appropriate state agency.
  • District of Columbia
  • Illinois
  • Maryland
  • Montana
  • South Dakota
  • Virginia
  • Wyoming
• All interstate operators and those intrastate operator not filing with a State Pipeline Safety Agency (reference previous bullet) who are required to develop public awareness programs satisfying the requirements of 49 CFR 192.616 or 49 CFR 195.440 by June 20, 2006 must submit their written public awareness program to PHMSA’s Public Awareness Program Clearinghouse between August 8 and October 8 of this year (2006).
• Provide the following information for each pipeline covered by the Public Awareness Program.
  • Operator ID and Name of the Operator
  • Person to contact, with e-mail and telephone number
  • Type or types of pipeline covered by the Operator ID
    • Gathering (gas or hazardous liquid)
    • Petroleum gas distribution
    • Natural gas distribution – municipally-owned and privately-owned
    • Gas Distribution – other
    • Gas Transmission – intrastate and interstate
    • Hazardous Liquid – intrastate and interstate
  • State or states in which the pipeline operates (by type)
  • PHMSA region or regions in which pipeline is located (by type)
  • Copy of Plan
• Plans may be filed between August 8, 2006 and October 8, 2006 in any of the following ways:
  • E-filing. PHMSA strongly encourages operators to submit public awareness programs through the Internet. The Online Data Entry System (ODES) is being modified to accept these programs.
  • Mail a computer disk with the aforementioned information to the following address: Public Awareness Program Clearinghouse, PHMSA, 400 7th Street, SW., Room 2103, Washington, DC 20590.
  • Mail the same information in paper form to the following address: Public Awareness Program Clearinghouse, PHMSA, 400 7th Street, SW., Room 2103, Washington, DC 20590.

For further information contact: Blaine Keener by phone at 202-366-0970 or by e-mail at blaine.keener@dot.gov.

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Texas Railroad Commission Reschedules Workshop

The Public Rulemaking Workshop that was scheduled for Thursday, August 31 has been canceled. A draft copy of the rule will be circulated this week to give everyone time to review. The TRRC is looking to schedule the meeting the week of September 15 or September 25. The TRRC will notify everyone as soon as they have reserved meeting space. Please call if you have questions: (512) 463-7049

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