DOT Pipeline Compliance News
September 2009 Edition

DOT Pipeline Compliance Workshop - October 6 & 7, 2009
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RCP will be hosting our very popular 2-day workshop on DOT Pipeline Compliance on October 6 & 7, 2009, in Houston, TX. Join us for an informative, lively, and interactive workshop on DOT Pipeline Compliance.

Day 1 (October 6): Gas Pipeline Regulations (49CFR192): Covering all the topics below but special emphasis will be placed on the changes in **GAS GATHERING** regulations.

Day 2 (October 7): Liquid Pipeline Regulations (49CFR195)

Each day of the workshop will address the following issues as they specifically relate to either Gas or Hazardous Liquid pipelines:

• PHMSA Overview
• PHMSA Jurisdictional Boundaries
• Production / Gathering / Transmission
• Onshore / Inlets to the Gulf of Mexico / Offshore
• Compliance Requirements:
• Design
• Construction
• Operation
• Maintenance
• Corrosion
• Testing
• Integrity Management
• Operator Qualification
• Emergency Response
• Reporting
• New/Proposed Regulations - including liquid rural low stress and new gas production pipeline rules in Texas and other states.

For additional information go to our website here.

PHMSA Request for Comments & OMB Approval of Existing Information Collection
[Docket No. PHMSA-2008-0211]
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On September 4, 2008, the Pipeline and Hazardous Materials Safety Administration (PHMSA) published a notice in the Federal Register of its intent to revise the following standardized forms for reporting pipeline incidents and accidents.

• Incident Report Form PHMSA F 7100.1, Gas Distribution Systems (Impacted Information Collection: OMB Control No. 2137-0522)
• Incident Report Form PHMSA F 7100.2, Gas Transmission and Gathering Systems (Impacted Information Collection: OMB Control No. 2137-0522)
• Incident Report Form PHMSA F 7000-1, Accident Report-- Hazardous Liquid Pipeline Systems (Impacted Information Collection: OMB Control No. 2137-0047)

New PHMSA Administrator Nomination
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President Barack Obama announced his intent to nominate Cynthia L. Quarterman to become the Administrator of the Pipeline and Hazardous Materials Safety Administration at the Department of Transportation. Ms. Quarterman is a partner in the Washington, DC office of the law firm Steptoe & Johnson LLP, where she has a regulatory and litigation practice in the areas of transportation and natural resources. She has more than 20 years of experience in the transportation of hazardous materials by pipeline. Quarterman served as a past Director of the Minerals Management Service at the Department of the Interior, which oversees the leasing, exploration and resource development on the Nation's outer continental shelf, including the transportation of hazardous materials by pipeline. Quarterman earned a Juris Doctorate degree from Columbia University's School of Law and a Bachelors of Science in Industrial Engineering degree from Northwestern University.

MMS NTL 2009-G28 on Pipeline Applications
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The Minerals Management Service (MMS) has issued a Notice to Lessees and Operators and Pipeline Right-of-way Holders (NTL) No. 2009-G28 concerning alternate compliance and departure requests in pipeline applications.

The purpose of the NTL is to provide guidance in submitting certain alternate procedures and equipment (alternate compliance) and departure requests from the regulations contained in 30 CFR 250 Subpart J. The following requests are routinely made to the MMS Gulf of Mexico OCS Region (GOMR) in pipeline applications, particularly those involving subsea tie-backs:

• Alternate compliance from the requirements of 30 CFR 250.1002(a) to use the provisions of API RP 1111 to calculate internal design pressure;
• Departure from the requirements of 30 CFR 250.1002(d) to allow the maximum allowable operating pressure (MAOP) of the pipeline to be less than the maximum source pressure (MSP) for Barrier Concept applications;
• Alternate compliance from the requirements of 30 CFR 250.1003(b)(1) to pre-test pipelines; and
• Alternate compliance or departure from the requirements of 30 CFR 250.1004(b)(9) to use subsea pipeline pumps.

Notice of proposed rulemaking: Reporting of Security Issues
[Docket No. TSA-2009-0014]
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The Transportation Security Administration (TSA) proposes to add new procedures to 49 CFR Part 1503 by which members of the public could report to TSA a problem, deficiency, or vulnerability regarding transportation security, including the security of aviation, maritime, railroad, motor carrier vehicle, or pipeline transportation, or any mode of public transportation, such as mass transit, in accordance with the Implementing Recommendations of the 9/11 Commission Act of 2007 (9/11 Act). Congress required that the Secretary of Homeland Security establish, by regulation and including a proposed rule, a process by which any person may submit a report to the Secretary regarding public transportation, railroad, or motor carrier vehicle security problems, deficiencies, or vulnerabilities. The proposed rule would, if promulgated in final form, establish a process by which reports could be submitted, either by U.S. mail, electronic mail, or telephone.

The 9/11 Act calls for a process to report security matters regarding public transit, railroad, or motor carrier vehicle transportation. TSA proposes to expand the scope of this provision beyond that required by the statute. The proposed rule provides a single point of contact for reporting transportation security problems, deficiencies, or vulnerabilities in any mode of transportation. The security benefits of receiving these reports would apply to other modes of transportation as well as to those enumerated in the statute. The broad language of the regulation would encourage members of the public to submit reports for all modes. If warranted, TSA would act to reduce security vulnerabilities that these reports bring to TSA's attention. Separately from this rulemaking, TSA is in the process of developing a program to confer monetary or other recognition on individuals who provide valuable information to TSA about criminal acts or other violations relating to transportation security.

Submit comments by October 26, 2009 to www.regulations.gov> and include the TSA docket number to this rulemaking.

RCP Web-Based Tracking Systems

We’ve developed two (extremely handy) web-based applications that will organize your compliance information.

RCP’s Compliance Management System manages all of your permit requirements, inspections, procedures and data requirements. The Compliance Management System’s email reminders and document links provide you with the information that you need to stay in compliance with the hundreds of regulatory tasks.

RCP’s Leak Tracking System tracks all leaks through their life span and compiles the data into annual DOT reports or semi-annual TRRC reports. (The TRRC report can be quickly uploaded into the TRRC Electronic Document Interchange process.) RCP’s Leak Tracking System is customizable so that field personnel can load data from laptops or hand-held devices. It’s simple to use, easy to access and can be integrated so that the leak data can be automatically sent to your GIS system.

Because these are web-based applications, there are no IT issues to struggle through to get started. For more information on either of these systems, please contact Jessica Roger.

Vessel and Facility Response Plans for Oil: 2003 Removal Equipment Requirements and Alternative Technology Revisions
[Docket No. USCG-2001-8661]
RIN 1625-AA26 [Formerly RIN 2115-AG05]
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The Coast Guard is updating its requirements for oil-spill removal equipment associated with vessel response plans and marine transportation-related facility response plans in 33 CFR Parts 154 and 155. These changes will add requirements for new response technologies and revise methods and procedures for responding to oil spills upon the navigable waters of the United States, adjoining shorelines, and the exclusive economic zone. The Coast Guard is also revising the compliance date for updates of vessel response plans (VRPs) required by the Salvage and Marine Firefighting final rule. This extension of the compliance date will ensure that plan holders are not required to update their VRPs twice within a 12-month period.

This final rule is effective September 30, 2009. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of September 30, 2009.

For a copy of this USCG final rule, contact Jessica Roger .

Pipeline Corporate Security Reviews by TSA
[Docket No. USCG-2001-8661]
RIN 1625-AA26 [Formerly RIN 2115-AG05]
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The Transportation Security Administration (TSA) plans to submit an information collection requirement to the Office of Management and Budget (OMB) for approval in compliance with the Paperwork Reduction Act. The collection will assess the current security practices in the pipeline industry by way of its Pipeline Corporate Security Review (PCSR) program, which encompasses site visits and interviews, and is part of the larger domain awareness, prevention, and protection program supporting TSA's and the Department of Homeland Security's (DHS') missions. TSA is seeking OMB approval for this information collection so that TSA can ascertain minimum security standards and identify coverage gaps, activities that are critical to carrying out its transportation security mission.

The PCSR is an "instructive" review that provides TSA with an understanding of certain surface transportation owners'/operators' security programs, if they have voluntarily adopted such programs. In carrying out PCSRs, subject matter experts from TSA's Pipeline Security Division conduct site visits of pipeline operators throughout the nation that elected to adopt security plans. The TSA representatives analyze the owner's/operator's security plan and determine if the mitigation measures included in the plan are being properly implemented. In addition to examining the security plan document, TSA reviews one or more assets of the owner/operator. TSA conducts this collection of information on security measures to identify security gaps. The discussions also provide TSA with a method to encourage the pipeline owners/operators affected by the PCSRs to be diligent in implementing and maintaining security-related improvements.

During the pipeline site visits, TSA talks with the owner/operator and completes a PCSR form, which asks questions concerning the following topics:

• Management and oversight of the security plan
• Threat assessment
• Criticality
• Vulnerability assessment
• Credentialing
• Training
• Physical security countermeasures
• Information technology security
• Security exercises and drills
• Incident management and communications.

PHMSA Postpones Cased Piping Workshop
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PHMSA had previously announced plans to conduct a workshop on cased piping assessment in conjunction with the NACE Corrosion Technology Week in Houston the afternoons of September 23 and 24. That workshop has been deferred, and will probably be re-scheduled for later this year. The workshop will review the materials developed by the Cased Pipe Quality Action Team, which was formed after a workshop PHMSA conducted on July 15-16, 2008 to discuss ECDA for cased pipeline segments.

Standard Operating Procedure Updates

RCP has developed standard operating procedures for hundreds of pipeline operators ranging from gas transmission, hazardous liquids, gas distribution, reservoir and salt dome gas storage facilities, oil terminals, regulated onshore gathering and offshore oil & gas facilities. Our procedure development process goes well beyond the typical cookie-cutter generic templates that you can buy off the shelf. We have a strong track record with successful PHMSA and state inspection performance – failure is not an option. Our procedure development process integrates with the daily operating processes that your personnel and contractors currently follow. When complete, you will have a comprehensive set of procedures that are easy to manage and comply with federal and state regulatory requirements. For more information, contact Jessica Roger.

Technical Advisory Committees – Telephone Conference
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The Technical Pipeline Safety Standards Committee (TPSSC) and Technical Hazardous Liquid Pipeline Safety Standards Committee (THLPSSC) met via conference call on August 6 to review recent regulatory activity and proposed rules. PHMSA informed the committees that the proposed rules on Distribution Integrity Management (DIMP) and Control Room Management (CRM) were poised to go to the Office of Management and Budget (OMB). Both rules should go final in two to three months.

The committees were informed that rulemakings on the “one rule” (regarding reporting requirements) and industry standards incorporated by reference are expected to be presented to the committees in the fall for a vote, and finalized by the spring of 2010.

The results of the low stress liquid pipeline survey were reviewed, which indicated that 312 miles of previously exempt low stress liquid pipelines were regulated in phase I of the rulemaking process, and 1,263 miles of currently exempt low stress liquid pipelines will be regulated in phase II of the rulemaking process. There was no timeframe given for completion of the phase II rulemaking process.

PHMSA noted that they are still studying the issues surrounding installation of large Excess Flow Valves (EFVs) for Commercial and Industrial Properties.

PHMSA mentioned that four demonstration grants of up to $25k each have been awarded under the Community Technical Assistance Grant Program, and that 25 applications are currently under review for normal grants of up to $50k each. PHMSA anticipates that the full appropriation of $1M will be awarded in August, 2009.

PHMSA mentioned that work is continuing on the Pipelines and Informed Planning Alliance (PIPA), especially around the issues of Consultation Zones and Planning Zones. A subgroup is working on these issues, and their work will be presented to the full PIPA workgroup for their concurrence. The PIPA initiative is expected to be complete by the fall of 2009. The PIPA documents will be published on the web, which will allow them to be updated on a regular basis.

GIS for Oil & Gas Conference & Exhibition
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Join us at the GIS for Oil & Gas Conference & Exhibition on September 13-17, 2009 at the Marriott Westchase Hotel in Houston, Texas. Bill Byrd will be speaking at the seminar on End to End: Risk and Integrity Management, on Monday, September 14. This seminar is designed for the GIS professional and risk and integrity personnel who work in conjunction to prepare and manage the IMP. Click here for more information on the conference.