DOT Pipeline Compliance News
June 2008 Edition

PHMSA Liquid Pipeline Final Rule – Low Stress and Gathering Line Exemptions
[Docket ID PHMSA-RSPA-2003-15864]
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Effective July 3, 2008, PHMSA has amended its hazardous liquid pipeline safety regulations to:

• Define "regulated rural gathering line" as an onshore gathering line in a rural area that has a nominal diameter of 6 5/8” to 8 5/8”, located within ¼ mile of an Unusually Sensitive Area (USA), with an MOP greater than 20% of the SMYS (or greater than 125 psi if the SMYS is unknown or the pipe isn’t made of steel); and require operators of these lines to comply with a subset of the existing pipeline safety requirements.
• Narrow the regulatory exception for rural onshore low-stress hazardous liquid pipelines by extending all existing safety regulations, including integrity management requirements, to low-stress pipelines with a nominal diameter of 8 5/8” or more located within ½ mile of a USA. Operators of newly regulated low-stress pipelines that can show an undue economic burden from complying with all pipeline safety regulations may be able to obtain a special permit from PHMSA to comply with alternative safety requirements in order to keep operating.
• Require operators of all low-stress pipelines (even those that continue to be exempt), to comply with annual reporting requirements.

Jurisdictional Determination

Has the new PHMSA rule on low stress and gathering line exemptions affected your pipelines? RCP has the expertise and tools to analyze and document the jurisdictional status of your pipelines and develop programs to get you in compliance with the new requirements. Click here to request more information on how RCP can help.

PHMSA ADB-08-04- Installation of Excess Flow Valves into Gas Service Lines
[Docket ID PHMSA-RSPA-2004-19854]
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PHMSA issued an advisory bulletin to advise gas distribution pipeline operators of a statutory requirement to install excess flow valves in selected gas service lines. The Pipeline Inspection, Protection, Enforcement, and Safety (PIPES) Act of 2006 mandates that PHMSA require operators of natural gas distribution systems to install excess flow valves (EFV) on certain gas service lines. The statute directs that installation of EFVs will be required on single family residence service lines:

• That are installed or entirely replaced after June 1, 2008;
• That operate continuously throughout the year at a pressure not less than 10 psi gauge;
• That are not connected to a gas stream with respect to which the operator has had prior experience with contaminants the presence of which could interfere with the operation of an EFV, and
• For which an excess flow valve meeting the performance standards of 49 CFR 192.381 is commercially available.

Proposed Rule: Increasing MAOP for Gas Transmission Pipelines
[Docket ID PHMSA-2005-23447]
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The Department of Transportation / Pipeline Hazardous Materials Safety Administration (DOT/PHMSA) proposed to amend the pipeline safety regulations to prescribe safety requirements for the operation of certain gas transmission pipelines at pressures based on higher stress levels. The result would be an increase of maximum allowable operating pressure (MAOP) over that currently allowed in the regulations. Please reference RCP's newsletter article on the proposed rule in the April 2008 edition of DOT Pipeline Compliance News. PHMSA is extending the period for written comments on the proposed rule until May 19, 2008, and will consider late filed comments so far as practicable. Comments should reference Docket ID PHMSA-2005-23447 and may be submitted to the E-Gov Web Site: http://www.regulations.gov. For a complete copy of the proposed rulemaking, contact Jessica Roger.

Advisory Bulletin ADB-08-01 - Direct Sales Pipelines Jurisdiction
[Docket No. PHMSA-RSPA-2004-19856]
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Editor’s Note: If you ever wondered why a lot of companies hire us to do jurisdictional determination work, the following article should help make the reasons clear…

PHMSA has issued an advisory bulletin stating that the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 eliminated the former exception of direct sales natural gas pipelines from the definition of an interstate gas pipeline facility.

The Federal pipeline safety laws (49 U.S.C. 60101 et seq.) define an "interstate gas pipeline facility" as a facility subject to the jurisdiction of the FERC under the Natural Gas Act (15 U.S.C. 717 et seq.). Prior to the passage of the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 (PIPES Act) (Pub. L. 109-468), the interstate gas pipeline facility definition contained an exception for a gas pipeline facility transporting gas:

• from an interstate gas pipeline in a State
• to a direct sales customer in that State
• buying gas for its own consumption

Has the 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 to contact Jessica Roger.

PHMSA Workshop on Integrity Assessments of Transmission Pipelines in Casings
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On July 15-16, PHMSA plans to conduct a 2-day public workshop to discuss integrity assessments of transmission pipelines in casings. The workshop will feature presentations from operators, regulators and other industry stakeholders. The workshop is not yet posted on PHMSA’s website calendar, but should be held in Chicago close to O'Hare airport.

Integrity Management Services

RCP can assist pipeline operators with ongoing compliance management and engineering associated with your IMP. This includes direct assessment strategies, tool and vendor selection, ILI/ECDA report analysis, corrosion control programs, repair strategies, and IMP/risk model updates. For more information on how RCP can support your ongoing IMP needs, click here.

International Pipeline Conference 2008
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Pipeline industry professionals from around the world will gather for the 7th International Pipeline Conference (IPC) on September 29 – October 3, 2008 in Calgary, Alberta, Canada at the TELUS Convention Centre and Hyatt Regency Hotel. Organized by volunteers representing international E&P, transmission, and distribution corporations, energy and pipeline associations and governments, the IPC has become internationally renowned as the world’s premier pipeline conference. Visit the IPC website for more information.

RCP Hideout at the IPC Conference

If you are planning to attend the International Pipeline Conference in Calgary (September 29 – October 3) ask Donna for directions to the RCP Hideout. Wii’ll be hosting a two-day competition with the Nintendo Wiis®. Drop by for food, drinks, and some friendly competition. Practice your electronic tennis, bowling, and baseball skills. Win a Wii®! Your family will love you for it!

Department of Homeland Security Chemical Facility Anti-Terrorism Standards (DHS CFATS) and Impact on Underground Storage of Natural Gas Operations:
(Courtesy of the AGA Associate newsletter)
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Following extensive discussions and a formal technical session with DHS at which AGA-member company storage operators provided a tutorial of storage operations, member company security professionals detailed storage vulnerability/consequence analyses, and the associations (AGA & INGAA) proposed a more applicable consequence evaluation (C-FER circle and High Consequence Area analysis), DHS has amended the online Top Screen application and analysis to include questions which take into account the differences between underground natural gas storage and underground storage of other types of chemicals (e.g., underground tanks). In the absence of these additional questions, all underground natural gas storage facilities (due to mass quantity, alone) should plan for compliance with the CFATS regulations.

A letter indicating how the facility ranked as a result of the preliminary analysis by the unamended Top Screen tool will be distributed by DHS to the facility operator in June. At that point, the operator will have the option to re-submit facility information (in its entirety) to the amended online Top Screen application. If an operator selects to re-submit, the likelihood significantly increases that the re-evaluation would demonstrate a more favorable analysis for the facility and ideally, would drop the facility from the current CFATS program.

Need A Security Plan or Audit?

We have the expertise to develop a security plan and perform risk assessments for pipeline and terminal facilities to meet recent DOT Hazmat Transportation & Pipeline regulations. We can also assist you in USCG security plans for dock facilities and vessels. Please contact Jessica Roger for more information.

Draft National Pollutant Discharge Elimination System (NPDES) General Permit for Stormwater Discharges From Construction Activities.
Federal Register: May 16, 2008 (Vol. 73, No. 96)
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EPA is proposing for public comment the issuance of their 2008 National Pollutant Discharge Elimination System general permits for stormwater discharges from new dischargers engaged in large and small construction activities. This draft 2008 CGP contains the same limits and conditions as the Agency's 2003 CGP with the exception of a few minor modifications detailed below. As proposed, EPA is issuing this CGP for a period not to exceed two (2) years. All comments must be postmarked by June 16, 2008. In addition, EPA is also requesting comments on the criteria to be used by the Agency to incorporate, by reference, "qualifying local program requirements" for erosion and sediment control.

Significant changes from the 2003 CGP include clarification that: eligibility for coverage under the 2008 CGP is limited to operators of new and unpermitted ongoing construction projects; operators of ongoing permitted construction projects are not eligible for coverage under the 2008 CGP and removal of eligibility for operators in Tribal Lands in Maine from the list of areas in Appendix B where this permit is effective.

For a copy of the Draft NPDES, contact Jessica Roger.

Need to Update your SPCC Plan?

RCP has created and/or updated over 200 Spill Prevention Control & Countermeasures Plans. We have the expertise to update your SPCC Plan. Please email Jessica Roger for more information.

Court Vacates Storm Water Permit Exemption
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On May 23, 2008, the U.S. Court of Appeals for the Ninth Circuit vacated a U.S. Environmental Protection Agency rule exempting certain natural gas construction activities (including gas transmission and storage construction projects) from Clean Water Act permitting requirements for storm water discharges. Construction activities that disturb more than 1 acre of soil may be impacted by this ruling, and may need storm water permits even if they were previously exempt. Click here for a copy of the petition for review.

MMS NTL 2008-G05 Shallow Hazards Program
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The U.S. Dept. of the Interior, Minerals Management Service (MMS) issued a Notice to Lessees and Operators and Pipeline Right-of-way Holders (NTL) No. 2008-G05 effective May 1, 2008. This supersedes NTL No. 2007-G01, effective February 15, 2007. It (1) specifies the group intervals for acquiring medium penetration seismic profiler information, (2) discontinues the process of obtaining prior approval if you want to substitute 3-D data and information for high-resolution subbottom profiler or a medium penetration seismic profiler information, (3) clarifies the procedures for submitting shallow hazards reports on CD-ROM’s, (4) amends the format for listing magnetic anomalies and sidescan sonar contacts in shallow hazards reports, (5) clarifies that the onsite provisions for mitigation of shallow hazards apply to lift and jack-up boats, and (6) allows a MODU or other vessel to depart a location without fully raising its legs or mat as long as they are raised sufficiently to ensure no contact with pipelines and other potential hazards.

For a copy of MMS NTL 2008-G05, contact Jessica Roger.

TEEX Pipeline Training Facility / Emergency Responders
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The Texas Engineering Extension Service (TEEX) is world renowned for its hands-on customized training — providing training and technical assistance to more than 204,000 workers last year. This year, TEEX is building a pipeline prop at their facility which will benefit the industry in training emergency responders. It will be fully functional for training on both gas and liquid pipelines. Phase I is complete which includes 6 stand alone props and 2,300 ft. of underground pipeline. Phase II features a Chemical Complex which will tie into the pipeline prop. Once completed, this complex will enable TEEX to continue to remain the flagship for training in the pipeline emergency response field.

For more information regarding TEEX and how you can make a monetary or equipment donation to the "Chemical Complex Program" please contact: Kevin McMaughan at (979) 458-0171, or by email: james.mcmaughan@teexmail.tamu.edu.

ERCB Directive 071 – Emergency Preparedness & Response Requirements for the Petroleum Industry
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The Energy Resources Conservation Board (ERCB) issued revised Directive 071 on April 8, 2008. This directive provides the requirements for petroleum industry operators. It covers not only sour operations but any activity where a hazard exists with the potential to cause a risk to the public. The format of the Directive has changed and is now divided into two parts: one for planning purposes and the other for response requirements. There are significant changes including new planning and response zones. Changes made are detailed in Table 1, "Summary of New Requirements" of the directive.

For a copy of this revised Directive 071, contact Jessica Roger.

Save the Dates!

2008 International Pipeline Security Forum
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The International Pipeline Security Forum (IPSF) will be held in Salt Lake City, UT at the Hilton Salt Lake City Center Hotel on October 29 & 30, 2008. The Forum is sponsored by the Transportation Security Administration (TSA) in collaboration with Natural Resources Canada. Registration and attendance at the forum is limited to pipeline, energy and security representatives and officials from private industry and government. This event is not open to the general public and media. IPSF Registration is free and hotel reservations can be made directly with the Hilton Salt Lake City Center Hotel no later than Sunday, September 28, 2008 for the discounted room rate.

Forum registration procedures and hotel reservation information can be found at the TSA Website.

The Forum agenda is currently being developed. Click here for the Draft Agenda.

Canadian NEB Pipeline Integrity Management Workshops
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The National Energy Board (NEB) is partnering with pipeline regulators in B.C., Saskatchewan and Manitoba to deliver workshops on pipeline integrity management programs and pipeline pigging.

Upcoming sessions will be held in Winnipeg, MB - June 24-25. Other workshops will be held in Lloydminster, Calgary, Edmonton, Regina, Grand Prairie, Bonnyville and Estevan in the Fall.

For more information about upcoming sessions, please download this document.