DOT Pipeline Compliance News
November 2008 Edition

PHMSA Final Rule on Increasing MAOP for Gas Transmission Pipelines
[Docket ID PHMSA-2005-23447]
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The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued its final rule amending the pipeline safety regulations to prescribe safety requirements for the operation of certain gas transmission pipelines (49 CFR 192) at pressures based on higher operating stress levels. The result is an increase of maximum allowable operating pressure (MAOP) over that currently allowed in the regulations. This final rule updates regulatory standards to reflect improvements in pipeline materials, assessment tools, and maintenance practices, which together have significantly reduced the risk of failure in steel pipeline fabricated and installed over the last twenty-five years. The final rule would apply to both new and existing pipelines, and would allow use of an established industry standard for the calculation of MAOP, but limit application of the standard to pipelines posing a low safety risk based on location, materials, and construction.

PHMSA has previously granted special permits on a case-by-case basis to allow operation of particular pipeline segments at a higher MAOP than currently allowed under the design requirements. With the publication of this final rule, this case-by-case approach to approving operation under a special permit at higher operating stress levels is no longer needed, and PHMSA will terminate its review of any pending applications. Under the final rule, several types of segments will not qualify for the higher MAOP:

• Segments in densely populated Class 4 locations
• Segments of grandfathered pipeline already operating at a higher stress level but not constructed in accordance with modern standards.
• Bare pipe.
• Non-steel pipe
• Pipe with wrinkle bends
• Pipe experiencing failures indicative of a systemic problem, such as seam flaws, during the initial hydrostatic testing.
• Pipe manufactured by certain processes, such as low frequency electric welding process.
• Segments which cannot accommodate internal inspection devices.

• Incorporating by reference ASTM Designation: A578/A578M-96 (Reapproved 2001) "Standard Specification for Straight-Beam Ultrasonic Examination of Plain and Clad Steel Plates for Special Applications".
• Prescribing additional design requirements in §192.112.
• Prescribing additional construction requirements, including rigorous quality control and inspections, in §192.328.
• Specifying additional operations, maintenance, testing, and notification requirements.

• Use of an alternate International Institute of Welding Carbon Equivalent (CE) formula.
• Allow a long-term coating integrity monitoring program to be used as a basis for allowing pipe temperatures in excess of 120 degrees Fahrenheit. Operators must submit their programs to the PHMSA pipeline safety regional office for review before pipeline segments may be operated at alternative MAOP at these higher temperatures.
• Allow a root cause analysis of any failures as a way of justifying qualification of a pipeline segment.
• Revised the required patrol frequency from 26 patrols per year, to once per month, at intervals not to exceed 45 days.

MAOP Analysis Model

Are you familiar with our Maximum Allowable Operating Pressure (MAOP) Analysis Model? Changes to MAOP can have a direct impact to the bottom line. Many companies are finding that changes to the pipeline that have occurred over years significantly impact the calculated MAOP value. We can input the data including pressure test records, construction design records, and repair records to derive an accurate MAOP for your current system. The model also allows you to review the impact on MAOP of proposed changes to the pipeline before they happen. For more information, contact Jessica Roger.

Minerals Management Service (MMS) Damage Reporting Changes
[Docket ID MMS-2008-OMM-0001]
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Effective December 1, 2008, the MMS is amending its regulations to require lessees, lease operators, and pipeline right-of-way holders to submit a report if a facility or pipeline is damaged by a hurricane or other natural phenomena. The final rule also requires operators to provide assessment information on the structural integrity of Outer Continental Shelf platforms; information on the use of unbonded flexible pipe for pipelines; and additional information when installing pipeline risers on floating platforms. The rule also incorporates an industry-developed standard concerning the in-service inspection of mooring hardware for floating drilling units. These changes will allow MMS to better regulate the safety of the oil and gas infrastructure, and to promptly assess damage resulting from hurricanes or other natural phenomena.

For additional information about this rulemaking, or for assistance in developing and managing the offshore inspection requirements required by MMS for offshore pipelines, contact Jessica Roger.

Texas Pipeline Safety Regulations – Proposed Revisions
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The Texas Railroad Commission (TRRC) has proposed several revisions to 16 TAC Chapter 8 – Pipeline Safety Regulations. The amendments include:

• New language to address onshore gas production pipeline facilities. If finalized in current form, onshore production lines in Class 2, 3 and 4 locations, beginning at the first point of measurement and ending as defined by 49 CFR Part 192 as the beginning of an onshore gathering line would be regulated and follow similar requirements for regulated gas gathering pipelines.
• Removal of gas gathering pipeline facilities from the state required Pipeline Integrity Management regulations. If finalized in current form, gas gathering pipelines would be exempt from future assessments. However, gas transmission pipelines will still be required to follow the state integrity management requirements, in addition to any applicable federal integrity management requirements.

Save the Dates!

TRRC Risk-Based Leak Survey Program
16 TAC Chapter 8 – Pipeline Safety Regulations
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As a reminder, The Texas Railroad Commission (TRRC) adopted new §8.206, “Risk-Based Leak Survey Program” effective September 1, 2008, for operators of gas distribution pipeline systems. The adopted rules require Texas gas distribution companies to establish a risk-based schedule of increased leak inspections; standardize leak grading and repair time frames (§8.207); and the mandatory removal and replacement program of leaks identified on compression couplings that join both steel and plastic pipe (§8.208). Please reference RCP's newsletter article on the proposed rule in the July 2008 edition of DOT Pipeline Compliance News.

Beginning November 1, 2008, and every six months thereafter until all compression couplings on the operator's system subject to §8.208(f) have been removed and replaced, each operator shall file with the division a progress report showing the number of service riser installations checked, the condition of the coupling, and the total number of compression couplings replaced for that reporting period.

For more information, or a copy of the new rule, contact Jessica Roger.

Leak Management Tracking System

RCP has developed a leak management system that tracks all leaks through their life span and will allow for the reports required by the TRRC to be easily generated and uploaded into the TRRC Electronic Document Interchange process. It is a web-based application that can be customized so that field personnel can interface through laptops or hand-held devices. Because it is web-based, there are no IT issues to struggle through to get started. Simple to use, easy to access, and can be customized with GIS integration tools, etc. For more information Click here to contact Jessica Roger.

Texas Railroad Commission New Website!
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The Texas Railroad Commission has updated their website and it has a new look! If you haven’t visited their web page recently, check it out at http://www.rrc.state.tx.us

Emergency Planning and Community Right-to-Know Act (EPCRA)
[Docket EPA-HQ-SFUND-1998-0002]
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Sections 311 and 312 of EPCRA apply to any facility that is required to prepare or have available a Material Safety Data Sheet (MSDS) for any hazardous chemical under the Occupational Safety and Health Administration (OSHA) and its implementing regulations. Effective on December 3, 2008, EPA is finalizing changes to the Emergency Planning Notification, Emergency Release Notification and Hazardous Chemical Reporting regulations that were proposed on June 8, 1998. EPA proposed four major revisions and provided draft guidance on various reporting options that States and local agencies may wish to consider in implementing the hazardous chemical reporting requirements. This action addresses only those changes proposed under the heading "Other Regulatory Changes" described in the preamble to the 1998 proposed rule. This final action includes minor revisions to the Emergency Planning Notification, Emergency Release Notification and Hazardous Chemical Reporting regulations, codifying statutory requirements, and clarifying certain interpretations and policy statements that EPA has provided to the regulated community. This final action does not affect public access to any of the information provided under the Emergency Planning Notification, Emergency Release Notification and Hazardous Chemical Reporting regulations. In addition to the regulatory changes, the Agency is finalizing the plain language format of the regulations. Each section in these regulations will be re-numbered and tables will be added for further clarification. Improving the clarity of the regulatory requirements will make the rule easier to understand and improve compliance.

For additional information or for a copy of the applicable federal register notice, please contact Jessica Roger.

Interested in Web-Based Compliance Management Systems?

RCP has the latest technology to help manage all of your permits, inspections, procedures, and data requirements and neatly organize them into one overall compliance assurance system. Because it is web-based, there are no IT issues to struggle through to get started. For more information, click here to contact Jessica Roger.

Update of Bureau of Land Management Linear Right-of-Way Rent Schedule
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Effective December 1, 2008, the Bureau of Land Management (BLM) is amending its right-of-way regulations to update the linear right-of-way rent schedule in 43 CFR parts 2800 and 2880. The rent schedule covers most linear rights-of-way granted under Title V of the Federal Land Policy and Management Act of 1976, as amended (FLPMA), and Section 28 of the Mineral Leasing Act of 1920, as amended (MLA). Those laws require the holder of a right-of-way grant to pay annually, in advance, the fair market value to occupy, use, or traverse public lands for facilities such as power lines, fiber optic lines, pipelines, roads, and ditches.

Section 367 of the Energy Policy Act of 2005 (the Act) directs the Secretary of the Interior to update the per acre rent schedule found in 43 CFR 2806.20. The Act requires that the BLM revise the per acre rental fee zone value schedule by state, county, and type of linear right-of-way use to reflect current land values in each zone. The Act also requires the Secretary of Agriculture (Forest Service) to make the same revisions for rights-of-way on National Forest System (NFS) lands. This final rule:

• Makes clear that the rent exemptions listed in section 2806.14 do not apply if the applicant/holder is in trespass;
• Provides that only the Per Acre Rent Schedule will be used to determine rent for linear right-of-way grants, unless the land encumbered by the grant is to be transferred out of Federal ownership;
• Provides for an annual rent payment term when the annual rent for non-individuals is $500 or more;
• Provides for a one-time rent payment for grants and easements when the land encumbered by the grant or easement is to be transferred out of Federal ownership;
• Provides for a limited phase-in provision to all holders for calendar year 2009, and, a possible additional phase-in period upon revision of the rent schedule under sections 2806.22(b) and 2885.19(a);
• Revises section 2920.6 to require reimbursement of processing and monitoring costs under sections 2804.14 and 2805.16 for applications for leases and permits issued under Title III of FLPMA;
• Amends section 2920.8(b) to assess a non-refundable processing fee and monitoring fee under sections 2804.14 and 2805.16 for each request for renewal, transfer, or assignment of a lease or easement;
• Amends sections 2805.11(b)(2) and 2885.11(a) so that all grants, except those issued for a term of 3 years or less and those issued in perpetuity under ‡FLPMA, expire on December 31 of the final year of the grant; and
• Amends sections 2805.14(f) and 2885.12(e) to make it clear that you may assign your grant, without the BLM's prior written approval, if your authorization so provides.

Technical Advisory Committee Meeting Notice
[Docket No. PHMSA-RSPA-1998-4470]
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The Technical Pipeline Safety Standards Committee (TPSSC) and the Technical Hazardous Liquid Pipeline Safety Standards Committee (THLPSSC) will meet in Arlington, VA on December 11 and 12 to discuss two important regulatory proposals and several future regulatory initiatives.

• The TPSSC and the THLPSSC will meet jointly on Thursday, December 11 from 9 a.m. to 5 p.m., to discuss and vote on the proposed rule on Control Room Management/Human Factors. (Please reference RCP's newsletter article on the proposed rule in the October 2008 edition of DOT Pipeline Compliance News.)
• The TPSSC will meet on Friday, December 12 from 9 a.m. to 5 p.m. EST to discuss and vote on the proposed rule for Integrity Management Program for Gas Distribution Pipelines. (Please reference RCP's newsletter article on the proposed rule in the July 2008 edition of DOT Pipeline Compliance News.)

Technical Assistance Grants to Communities
[Docket ID PHMSA-2008-0292]
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PHMSA has established the criteria and competitive procedures that will be used in awarding grants under the Technical Assistance Grants (TAG) program authorized in 49 U.S.C. 60130 and section 2(e) of the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006. Subject to future appropriations, the TAG program will provide grants of up to $50,000 each to local governments and community groups for engineering and other technical assistance related to pipeline safety matters.

PHMSA has also announced their plans for awarding the three demonstration grants authorized under the TAG program. These demonstration grants (not exceeding $25,000 each) are expected to assist pilot communities with testing draft recommended practices currently being developed by the Pipelines and Informed Planning Alliance (PIPA) task teams. PHMSA, in consultation with the PIPA Steering Committee, will select the three pilot communities based on the Applicant's interest in pilot testing draft PIPA best practices. Each demonstration grant recipient will be required to provide a report to PHMSA demonstrating completion of the work as outlined in the grant agreement. Further, each recipient of a grant under section 5 must ensure that:

• The technical findings made possible by the grants are made available to the relevant operators; and
• Open communication is maintained between the grant recipients, local operators, local communities and other interested parties.