September 2023 Issue
In This Issue
PHMSA Notice of Proposed Rulemaking – Gas Distribution
[Docket No. PHMSA-2021-0046]
On September 7th, PHMSA’s Notice of Proposed Rulemaking (NPRM), Safety of Gas Distribution Pipelines and Other Pipeline Safety Initiatives, was published in the Federal Register. This NPRM would require gas distribution operators to update their distribution integrity management programs (DIMP), emergency response plans, operations and maintenance manuals, and other safety practices. This NPRM implements congressional mandates from the Leonel Rondon Pipeline Safety Act and an NTSB recommendation directed toward preventing catastrophic incidents resulting from over pressurization of low-pressure gas distribution systems, similar to what occurred on a gas distribution system in Merrimack Valley, MA on September 13, 2018. The 59-page rulemaking is quite extensive, and includes (among other requirements):
- Improving construction procedures designed to minimize the risk of incidents caused by system over-pressurizations.
- Updating Operator’s DIMP plans to consider and prepare for the threat of over-pressurization, specifically over-pressurization on low pressure systems.
- Requiring new regulator stations to be designed with secondary pressure relief valves and remote gas monitoring, to better prepare gas distribution systems to avoid over pressurizations, and limit damage during incidents.
- Strengthening emergency response plans for gas pipeline emergencies, including requirements for operators to contact local emergency first responders / public officials for incidents involving fire/explosion/fatality/significant interruption and keep customers and the affected public informed of what to do in the event of an emergency and post incident.
- DIMP plans to be required to assess risk of cast iron, bare steel, unprotected steel, wrought iron, and historic plastics with known issues and low-pressure distribution systems, as well as the possibility of future accidents, to better account for high-consequence but low-probability events.
- DIMP plans to consider factors that increase the likelihood of failure such as age, increase the overall risk (including factors that simultaneously increase the likelihood and consequence of failure), and limit the effectiveness of leak management programs.
- Operators to consider and take appropriate action to address the impacts of extreme weather as a threat, regardless of whether they had experienced such events in their pipelines’ history, while still recognizing regional differences.
- DIMP plans to assess risk to low-pressure gas burning equipment.
- Revise O&M manual / Emergency plans to include procedures for responding to overpressure indications.
- MOC procedure to account for significant changes to distribution system, and to ensure SME review/approval of relevant construction plans.
- Traceable/Verifiable/Complete records for gas distribution facilities “critical to ensure proper pressure controls.”
- Monitoring for overpressure by OQ-qualified person during certain construction projects.
- Assess risk of (and eliminate) common mode of failure at district regulator stations.
- Construction inspection requirement for inspections to be performed using different personnel to conduct the inspection than had performed the construction activity.
PHMSA also proposes to codify use of its State Inspection Calculation Tool, which is used to help states determine the base-level amount of time needed for inspections to maintain an adequate pipeline safety program. PHMSA proposes other pipeline safety initiatives for all part 192-regulated pipelines, including gas transmission and gathering pipelines. This includes updating emergency response plans and inspection requirements. Finally, PHMSA proposes to apply annual reporting requirements to small, liquefied petroleum gas (LPG) operators in lieu of DIMP requirements.
For a copy of the NPRM, click here.
PHMSA PSMS Survey Now Live
The online portal for PHMSA’s Pipeline Safety Management Systems (PSMS) voluntary Information Collection Request is now available on the same portal used for Gas Distribution Annual Report submissions. Operators have until September 19, 2023, to respond.
RCP Offers PSMS Development and Gap Analysis
RCP has extensive experience in developing, assessing, and implementing safety management systems. RCP subject matter experts played an instrumental role in conducting industry research for the development and creation of API 1173, including the public awareness materials and the planning, implementation, and program effectiveness tools used throughout the industry.
PSMS programs provide proven benefits to operational productivity and efficiency through:
– Improving personnel and pipeline safety performance
– Installing a continuous improvement mindset
– Enabling active engagement with company leadership
Contact Jessica Foley to discuss how investing in your Pipeline Safety Management System can benefit you!
Arkansas Damage Prevention Reg Changes
On August 14th, the Arkansas State regulations for Chapter 271 – Underground Facilities Damage Prevention were updated. Additions, deletions and modifications were made to the definitions. New language was added to Chapter 14-271-104. Penalties – Civil Remedies. “. . .any person who damages an underground facility and violates this chapter shall be subject to a civil penalty or mandatory training in underground facilities damage prevention, as follows:
- For a first violation in a twelve-month period a person who violates this chapter may be required to undergo training in underground facilities damage prevention according to a training program developed and administered by the One Call Center.
- Subsequent violations within a twelve-month period, the maximum penalty amount under the penalty structure of this subsection shall not exceed $50,000.
- For a second violation in a twelve-month period, the person shall be ordered to pay a civil penalty in an amount up to $5,000 for each violation; and
- For three (3) or more violations in a twelve-month period, the person shall be ordered to pay a civil penalty in an amount up to $10,000 for each violation.
- For those that have been ordered to undergo training listed above, shall be subject to a civil penalty up to $2,500 for each violation if the person fails to complete any of the required training within 120 days from the entry of the order or settlement.
Operators of underground pipeline facilities and excavators, upon violation of certain applicable federal code requirements concerning marking facilities or general waivers as in effect on January 2023, unless excepted under § 14-271-109, and damage an interstate or intrastate natural gas pipeline facility or an interstate or intrastate hazardous liquid pipeline facility, shall be subject to civil penalties in an amount not to exceed two (2) times the amount of property damage to the facility, up to a maximum of $257,664 for each violation for each day that the violation persists, except that the maximum civil penalty shall not exceed $2,257,664 for any related series of violations.
Other miscellaneous changes:
- Working day starts at 7:00 a.m. on each business day.
- Operators shall provide an electronic positive response to the One Call Center.
- Excavators shall confirm through the One Call Center’s electronic positive response system before excavation.
- Excavators may begin excavation before the specified waiting period only if the excavator has confirmed that all operators have responded with an appropriate electronic positive response.
Changes were also made to 14-271-109 Notice to One Call Center – Exceptions and 14-271-110 Notifying operators of underground facilities — Identification of location.
For a copy of the updated regulation, contact Jessica Foley.
Texas RRC Notices to Pipeline Operators
The Railroad Commission of Texas (RRC) issued several notices to Pipeline Operators regarding electronic or online filing for POCs and new construction reports; and, there is a new address for the Fort Worth office.
Plan of Correction Letter Electronic or Online Filing Mandatory September 1
Pipeline operators must submit POC letters, including completion documentation, by email to Safety@rrc.texas.gov or online using the RRC’s Pipeline, Inspection, Permitting and Evaluation System (RRC PIPES) available on the RRC website. To view the full notice click here.
New Construction Reports Online Filing Mandatory September 1
Effective September 1, 2023, the RRC will no longer accept hard copy filings of Form PS-48, New Construction Report, by mail. Pipeline operators must submit New Construction Reports using the RRC’s Pipeline, Inspection, Permitting and Evaluation System (RRC PIPES) available on the RRC website.
Likewise, correspondence from the RRC to pipeline operators on New Construction Report status will no longer be sent by mail. All RRC correspondence will be sent by email. To ensure you receive the correspondence, we suggest you mark Safety@rrc.texas.gov as safe so emails from the RRC will appear in your inbox.
Pipeline operators, who are authenticated users, can log into RRC PIPES to submit New Construction Reports for review and approval by the RRC. To become an authenticated user, you must request access to the RRC Access Management Process (RAMP) through your organization’s Delegated Administrator. Each company must designate at least one Delegated Administrator to manage their PIPES authenticated users. The Delegated Administrator can create new users, reset passwords, inactivate accounts, and perform other administrative tasks for their organization’s users. To become a Delegated Administrator, visit the RRC website at https://www.rrc.texas.gov/apps/rrc-ramp/.
If you have any questions regarding this notice, please contact RRC Pipeline Safety Department at safety@rrc.texas.gov or 512-463-7058. To view the full notice click here.
Texas RRC Fort Worth Office Moving to New Location
The Fort Worth office of the RRC (Pipeline Safety Region 6) is moving. The new location is 6777 Camp Bowie Blvd., Suite 233, Fort Worth, Texas 76116. The office will open for regular business on Friday, September 1. The office’s telephone and fax numbers will remain the same.
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 July 2023, PHMSA issued 1 CAO, 3 NOAs, 5 NOPVs, and no WLs accompanied by $119,000 in proposed fines. Significant proposed fines were attributed to the following code sections:
- $33,500 – 49 CFR 192.805(b) – Qualification Program
- $16,700 – 49 CFR 195.446(c)(3) – Control Room Management
- $68,800 – PHMSA-2008-0331 – Response Time for ILI Results
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 concern.
- 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.
- A Proposed Compliance Order (PCO) frequently documents 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.
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, interpretations and pending regulatory deadlines.
Q: Is a spill of diesel fuel from a tank used to refill company vehicles at a crude oil pumping station considered to be a PHMSA-reportable spill?
A: PHMSA’s regulations in 49 CFR 195.50 require accident reporting for “a release of the hazardous liquid or carbon dioxide transported.” Since the facility in question does not transport diesel fuel, the spill is not reportable to PHMSA. Note that it may be reportable to other state or federal agencies.
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?
DID YOU KNOW? Natural gas is what fuels the stoves and ovens that deliver world-class, memorable meals in restaurants and resorts. Hotels use natural gas to provide hot showers, clean linens, and to keep the lights no matter the situation. In colder climates, heated pools and saunas allow guests to relax, and fire pits keep people warm while connecting with family and friends and enjoying the outdoors. Natural gas is the reliable, affordable fuel that is central to so much of the fun we experience and the time we spend with friends and family and the world around us. Learn more about how natural gas fuels the hospitality sector in AGA’s Advancing America Series.
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.
We would welcome the opportunity to discuss our services with you.
Sincerely,
W. R. (Bill) Byrd, PE
President
RCP Inc.