As part of its pipeline authorization process, FERC takes into account the effect that issuing such authorizations has on historic properties. In some pipeline projects, historic properties simply cannot be avoided because the existing natural gas pipelines and related pipeline facilities are themselves listed, or eligible for listing, in the National Register of Historic Places (“historic natural gas pipelines”). Natural gas pipelines and related pipeline facilities may be historic due to such things as their particular design and engineering features, or their association with important national or regional historic events and well-known persons. On October 19, 2001, the Advisory Council on Historic Preservation proposed a Program Comment to streamline the historic preservation review process for projects involving historic natural gas pipelines. The full text of the proposal is available on RCP’s website at 66 FR 53198 10-19-01 Historic Pipelines.pdf. Note that comments are due on or before November 9, 2001.

Pending Audits?

The Office of Pipeline Safety recently announced their new website dedicated to Pipeline Integrity Management issues. It is located at http://primis.rspa.dot.gov/iim/. We are sure that you will want to bookmark this site for future reference. As described in OPS’s notice concerning this new site: This web site provides information about OPS’s new Rule on Pipeline Integrity Management in High Consequence Areas for Hazardous Liquid Operators (49 CFR 195.452). The site provides information on the basic steps required for operator compliance with these new requirements. It also contains several useful resources, such as the rule and preamble text, a glossary of terminology, and a fact sheet summarizing the key requirements. This site is highly interconnected to assist users in locating information on a particular subject. For example, the major clauses in the rule all contain links to a set of “Frequently Asked Questions” that provide additional guidance and interpretation of the specific requirements.

The Frequently Asked Questions on this web site include the questions raised by participants at the August Integrity Management workshop. We had planned to discuss these issues at the October workshop. Since this workshop was cancelled for security reasons, our web site is now our primary vehicle for communicating this information.

Editor’s note: Our hats go off to OPS for getting this site up and running, and with such useful information, in the midst of very trying times in our nation’s Capitol. Great job!

Do you own or operate 500 miles of hazardous liquid pipeline? The answer may surprise you! The new OPS Implementing Integrity Management website (see article) contains the following Q&As; from the August Integrity Management workshop, concerning how the “500 mile” criteria should be applied when determining if the “Large Liquid” PIM rule applies to a pipeline operator:

Q – What is meant by “operator who owns or operates a total of 500 or more miles of pipeline” in 195.452 (a)? For example, if a large operator who operates more than 500 miles of pipeline also owns a small percentage of a small pipeline (less than 500 miles) that is operated by a different organization – does that smaller operator have to comply with the large operator rule – even if its O&M; manual, management processes, etc. are totally separate from the large operator?

A – The current rule applies to operators who own or operate a total of 500 or more miles of pipeline. This means that if an operator also is part owner of another pipeline operating company, the mileage of that other company is included in determining whether or not the 500 mile criteria is met. If the total pipeline mileage is equal to or greater than 500 miles, then the requirements of the current rule apply to both companies’ pipeline systems – even if they have totally distinct O&M; manuals, etc.

Q – If the operator of a small pipeline system (i.e. less than 500 miles) is partially owned by a large operator (i.e., one who operates more than 500 miles of pipeline), who is responsible for preparing the Baseline Assessment Plan and complying with the provisions of this rule – the operator, or the company that is part owner?

A – The operator is required to comply with OPS regulations, and thus is responsible for preparing a Baseline Assessment Plan that meets all of the requirements in 195.452 (c). Operators may use outside resources, including adopting management plans prepared by parent companies, but that does not relieve the operator of responsibility for having an acceptable plan.

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.