DOT Pipeline Compliance News January 2001 Edition Recent Trends in DOT Pipeline Regulations
In This Issue: API Operator Qualification Conference Workshop on Pipeline Integrity Management Proposed Rule on Hazardous Liquid Pipeline Corrosion Notice of Random Drug Testing Rate Natural Gas Pipeline Failure Report Risk Management Project - Tennessee Gas Pipeline Risk Management Project - Duke Energy OPS Issues Unusually Sensitive Area Rule Procedures for Transportation Workplace Drug and Alcohol Testing Programs Meetings of Pipeline Safety Advisory Committees Pipeline Penalty Proposed NTSB Chairman Jim Hall to resign Help Wanted
Notice: We are in the process of changing our website host and e-mail service provider. The omnipotent rulers of the internet domain name system can be rather arbitrary about when a host change will occur... so we aren't sure exactly when the swap will happen. If you reply to this newsletter and get any kind of error message, please re-try a day later. API Operator Qualification Conference: API will host a two-day Pipeline Operator Qualification Conference, February 14-15, 2001 at Sheraton Houston Brookhollow, 3000 North Loop West Houston, TX. This conference will feature speakers from industry and TSI, and will include the following topics: Introduction to API RP 1161 - Guidance Document for Qualification of Liquid Pipeline Personnel Discussion of the API/ National Center for Construction Education and Research (NCCER) Alliance OQ Program Discussion of OQ implementation issues, with recommended strategies. The conference web page can be found at http://www.api.org/training/Conferences/OQconference.htm. RCP is one of the corporate sponsors for this conference. We hope to see you there! Workshop on Pipeline Integrity Management: RCP is conducting a 3 day workshop on Pipeline Integrity Management on Tuesday, March 6-8, 2001 at our Houston office. We will review the new federal rulemaking for Pipeline Integrity Management in High Consequence Areas (see our December 2000 pipeline newsletter). This final rule specifies regulations to assess, evaluate, repair and validate through comprehensive analysis the integrity of hazardous liquid pipeline segments that, in the event of a leak or failure, could affect populated areas, areas unusually sensitive to environmental damage and commercially navigable waterways. This final rule takes effect March 31, 2001. We will also review and discuss the proposed pipeline integrity management rulemaking for the State of Texas, which will apply to ALL intrastate pipeline operators. The workshop web page can be found at http://www.your-rcp.com/dotseminar2001.htm Proposed Rule on Hazardous Liquid Pipeline Corrosion: On December 8, 2000, RSPA published their proposal to change some of the corrosion control standards for hazardous liquid and carbon dioxide pipelines by adding a new subpart H to part 195 called Corrosion Control. The proposed changes are intended to improve the clarity and effectiveness of the present standards and reduce the potential for pipeline accidents due to corrosion. Note that this proposal does not apply to the corrosion control standards in Part 192 (gas pipelines). You should also note that "breakout tanks" come within the scope of proposed subpart H, because part 195 defines "pipeline" to include breakout tanks (§195.2). Persons interested in submitting written comments on the proposed rules must do so by February 6, 2001 (docket No. RSPA-97-2762; Notice 3). The proposed rule can be downloaded from RCP's web site at 65 FR 76968. Notice of Random Drug Testing Rate: On December 26, 2000, RSPA announced the random drug testing rate for 2001. Each year, a minimum percentage of covered pipeline employees must be randomly tested for illegal drugs. The percentage, either 50 percent or 25 percent, depends on the positive rate of random testing reported to RSPA in the previous year. In accordance with applicable standards, we have determined that the positive rate of random testing reported this year for testing in calendar year 1999 was less than 1.0 percent. Therefore, in calendar year 2001, the minimum annual percentage rate for random drug testing is 25 percent of covered employees. Natural Gas Pipeline Failure Report: The National Transportation Safety Board (NTSB) has published a report on the Natural Gas Service Line and Rupture and Subsequent Explosion and Fire in Bridgeport, Alabama, on January 22, 1999. On January 22, 1999, while digging a trench behind a building at 406 Alabama Avenue, a backhoe operator damaged a ¾-inch steel natural gas service line and a 1-inch water service line. This resulted in two leaks in the natural gas service line, which was operated at 35 psi. One leak occurred where the backhoe bucket had contacted and pulled the natural gas service line. The other was a physical separation of the gas service line at an underground joint near the meter, which was close to the building. Gas migrated into the building at 406 Alabama Avenue, where it ignited about 10:02 a.m. An explosion followed, destroying three buildings: 404, 406, and 408 Alabama Avenue. Other buildings within a two-block area of the explosion sustained significant damage. Three fatalities, five serious injuries, and one minor injury resulted from this accident. This and other NTSB pipeline reports are available at http://www.ntsb.gov/publictn/P_acc.htm. Risk Management Project - Tennessee Gas Pipeline: The Accountable Pipeline Safety and Partnership Act of 1996 authorizes the Secretary of Transportation to establish risk management demonstration projects. Tennessee Gas Pipeline Company (TGP) is one of the companies participating in this demonstration program. TGP has identified a portion of its system where it believes performing alternative risk control activities in lieu of compliance with current regulations would result in a comparable margin of safety and environmental protection. On December 11, 2000, OPS announced their intent to consider granting a waiver to allow TGP to perform the proposed alternative risk control activities. TGP identified four pipeline segments in its system that have changed from Class Location 2 to Class Location 3. Under current regulations, TGP would have to either re-test these segments at a higher pressure, or reduce the maximum allowable operating pressure. TGP proposed to conduct risk control alternative activities (the "Activities") in lieu of the class location change requirements. These activities include: Internally inspect the waiver segments using geometry and magnetic flux leakage in-line inspection tools. Internally inspect an extended length of pipe (the "extended segments") bordering each waiver segment to further extend the benefits of the integrity analysis. Repair indications of corrosion, existing construction damage, and existing outside force damage identified by the internal inspection. Perform close-interval surveys on the waiver segments and extended segments, as an additional method to detect possible pipeline corrosion. Risk Management Project - Duke Energy: Also on December 11, OPS announced their intent to approve a waiver to allow Duke Energy to increase the allowable operating pressure in the fifteen pipe segments who had experienced class location increases. The risk control activities include: Internally inspect the waiver segments using geometry and magnetic flux leakage in-line inspection tools. Internally inspect approximately 166 miles of additional pipe on the three parallel lines in the Mt. Pleasant Discharge. Investigate dents upon completion of the dent inspections for an extended length of pipe (the "extended segments") bordering and including each waiver segment to further extend the benefits of the integrity analysis. Repair indications of corrosion, existing construction damage, and existing outside force damage identified by the internal inspection using conservative investigation and repair criteria. Perform hydrostatic tests of the portions of Line 10 which have not previously been tested to 100 percent (SMYS). This includes two of the waiver segments. Implement a Communications Plan designed to inform and educate appropriate stakeholders and Duke Energy employees about risk management concepts and the purposes and expected benefits of the Duke Energy Demonstration Project. Perform enhanced damage prevention activities including implementing selected recommendations from a recent study of one-call systems and damage prevention programs best practice, "Common Ground". Duke will also install, for a trial period, the TransWave monitoring system covering all of the waiver segments. This system will be tested to determine its reliability and usefulness for detecting third-party encroachments (construction, excavation, etc.) in the pipeline right-of-way. 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. OPS Issues Unusually Sensitive Area Rule: On December 21, 2000, OPS issued their final rule on the definition of Unusually Sensitive Areas (USAs). This final rule defines drinking water and ecological areas that are unusually sensitive to environmental damage if there is a hazardous liquid pipeline release. RSPA will map USA locations on a state by state basis, beginning with the states that have the largest number of liquid pipeline miles. RSPA expects to complete the first ten states by the end of the year. These states include Texas, Oklahoma, Kansas, Louisiana, Illinois, Wyoming, New Mexico, California, Missouri, and Montana. The remaining states are expected to be completed by the end of 2001. RSPA intends to update the USA maps every five years, contingent on the availability of funding and resources. This final rule is available on RCP's website at 65 FR 80530 . It does not require specific action by pipeline operators but will be used in existing and future regulations, such as: Integrity Management Rule. Applies to hazardous liquid pipelines that are in, or could effect, a USA. Risk-based Alternative to Pressure Testing Older Hazardous Liquid and Carbon Dioxide Pipelines. RSPA may clarify that USAs must be considered in identifying areas of environmental sensitivity. Response Plans for Onshore Oil Pipelines under 49 CFR part 194. RSPA may amend the definition of environmental importance to include USAs. Area Contingency Plans. Area Committees and OPS may use the USA definition in reviewing and validating response plans and response plan revisions. Low Stress Pipelines. Currently pipelines operating at low stress in rural areas are exempt from compliance with 49 CFR 195 requirements. RSPA may consider removing this exemption for low stress lines that could impact USAs. There were a number of comments on the proposed rule. Many proposed changes were not adopted, as described in the preamble to the rule, while other suggested changes were adopted. Some important differences between the proposed rule and the final rule include: Source water protection areas (SWPAs) have replaced wellhead protection areas (WHPAs), specifically the areas of primary influence. Where SWPAs have not been created, WHPAs will be continue to be used to identify USAs. A preliminary drinking water USA is considered to be a USA unless it is verified that an adequate alternative drinking water source exists. The adequate alternative drinking water source definition has been changed to extend the amount of time needed for the backup water source from one month to six months for groundwater systems. The final definition removes the doubling of SWPAs and WHPAs in sole source aquifers. RSPA has included the recharge areas of sole source aquifers that are karst in nature in the final USA definition. RSPA added critically imperiled and imperiled rare ecological communities, such as California’s vernal pools, as ecological USA candidates, with the caveat that the natural community data must match recent nomenclature and conservation status rank conventions. In the pilot states, adding rare communities increased the amount of land mass by less than 1% in Louisiana and California. It did not increase the land mass covered in Texas. RSPA made imperiled, threatened and endangered, and depleted marine mammal species that are aquatic or aquatic dependent or are terrestrial and have a limited range USAs. In the pilot states, adding aquatic, aquatic dependent, and limited range species increased the amount of land mass by less than 2% in Texas, 4% in California, and 13% in Louisiana. RSPA added to the USA definition imperiled, threatened or endangered, or depleted marine mammal species occurrences and imperiled ecological community occurrences that are in the best condition and are therefore the most viable. In the pilot states, adding rare communities increased the amount of land mass by less than 1% in Texas, by 2% in California, and by 4% in Louisiana. RSPA will consider extending protection to other environmentally sensitive and vital resources such as national parks, wetlands, wildlife preservation areas, refuges, fish hatcheries, vulnerable species, cultural resources, recreation areas, and economic resource areas through future rulemaking. RSPA will also analyze new, revised, or refined drinking water and ecological programs every five years to determine if other programs should be added to the USA definition. RSPA will propose any revisions to the USA definition in a notice of proposed rulemaking. As additional ecological and drinking water resource information becomes available, and RSPA identifies and locates additional USAs, the operator has the responsibility to apply this new information in its integrity management program. Procedures for Transportation Workplace Drug and Alcohol Testing Programs: In a 119 page document, the Department of Transportation announced in the Federal Register that it is revising its drug and alcohol testing procedures regulation. (65 FR 79462, December 19, 2000) The purposes of the revision are to make the organization and language of the regulation clearer, to incorporate guidance and interpretations of the rule into its text, and to update the rule to include new provisions responding to changes in technology, the testing industry, and the Department's program. The rulemaking takes effect in two stages. Certain changes to the existing regulations in 49 CFR Part 40 become effective January 18, 2001. A completely reorganized 49 CFR Part 40 becomes effective August 1, 2001. These regulations apply to all parties who conduct drug and alcohol tests required by DOT agency regulations, including regulations published by the Coast Guard and Office of Pipeline Safety. The reorganized rule is in a greatly simplified question and answer format specifically directing particular parties to take particular actions (e.g., "As an employer, you must * * *"). In addition, DOT has attempted to rewrite the regulations in plain language. Among the significant issues addressed in the new rule is one related to stand-down, the employer practice of a temporarily removing an employee, such as a crew member, from performance of safety-sensitive duties upon learning that the individual had a confirmed laboratory positive drug test, but before the Medical Review Officer completed the verification process. The existing regulation prohibits stand-down. The revised regulation includes a procedure that permits employer, on a case-by-case basis, to request DOT agency approval for a specific, well-founded stand-down plan that effectively protects the interests of employees. The new regulations also include a Public Interest Exception (PIE). Under these provisions a DOT-regulated employer could be directed not to use certain persons and organizations that provide drug and alcohol testing services that have been found to be in serious non-compliance with 49 CFR Part 40. Pending Audits? Has the DOT notified you of a pending audit? RCP can provide confidential internal auditing to help ensure that your facilities are up to the agency's latest standards. Help Wanted Know someone with regulatory expertise who is interested in full or part time work? Our recruiting coordinator would be glad to get their resume! Have them sent to marilyn@your-rcp.com, or FAX to 713-655-8083. Meetings of Pipeline Safety Advisory Committees: On Tuesday, February 6, 2001, at 9 AM, the Technical Pipeline Safety Standards Committee (TPSSC) will meet. The preliminary agenda includes discussion of the following issues: Pipeline Integrity Management in High Consequence Areas (Gas Transmission Pipeline) Revision to Gas Incident/Annual Report Form Gas Gathering Line Definition Plastic Pipe Data Committee On Tuesday, February 6, 2001, from 1-4 PM, the TPSSC will be joined by members of the Technical Hazardous Liquid Pipeline Safety Standards Committee (THLPSSC) for a joint session. The preliminary agenda includes discussion of the following topics: An Overview of the State of the Pipeline Safety Program (including Reauthorization, Inspector General and General Accounting Office Reports, and National Transportation Safety Board Recommendations, Research and Development Plans). Drug Testing-Notice of Proposed Rulemaking (Vote). On Wednesday, February 7, 2001, from 9-11 AM, the joint meeting will continue with a demonstration of the National Pipeline Mapping System (NPMS). The Committee will also hear a report on concepts for community right-to-know reporting. The Technical Hazardous Liquid Pipeline Safety Standards Committee will meet on Wednesday afternoon from 1-4 PM. The preliminary agenda includes discussion of the following topics: Producer-Operated Outer Continental Shelf Gas & Hazardous Liquid Pipelines that Cross Directly into State Water-Notice of Proposed Rulemaking (Vote). Pipeline Integrity Management in High Consequence Areas for Hazardous Liquid Pipelines < 500 Miles-Notice of Proposed Rulemaking (Vote). Controlling Corrosion on Hazardous Liquid and Carbon Dioxide Pipelines-Notice of Proposed Rulemaking (Vote). Advisory on Response Plans Under the Oil Pollution Act. Both the TPSSC and the THLPSSC are statutorily mandated advisory committees that advise the RSPA's Office of Pipeline Safety (OPS) on proposed safety standards and other safety policies for hazardous liquid and natural gas pipelines. The committees typically meet twice a year, in May and November. However, the next advisory committee meetings will be held on February 6-7, 2001, to allow the committees to review several proposed rules early in the year to allow for the timely completion of these projects. (Editor's note: the agendas above give a very clear indication of rulemakings that can be expected in 2001). The conference room numbers for these meetings will be posted on the OPS web page approximately 15 days before the meeting date at http://ops.dot.gov. FOR FURTHER INFORMATION CONTACT: Cheryl Whetsel, OPS, (202) 366-4431 or Richard Huriaux, OPS, (202) 366-4565. Pipeline Penalty Proposed: The U.S. Department of Transportation's (DOT) Research and Special Programs Administration (RSPA) announced it is seeking a $674,000 civil penalty against Potomac Electric Power Company (PEPCO) and Support Terminal Services (ST Services), the owners and operators of a PEPCO pipeline, for safety violations related to an oil spill in Maryland. Approximately 3,000 barrels of oil spilled from a pipeline operated by ST Services into the Patuxent River and surrounding wetlands of Swanson Creek in southern Prince Georges County, Md., on April 7, 2000. The penalty action includes fines against PEPCO and ST Services for safety violations identified during the Office of Pipeline Safety's (OPS) investigation following the failure. Following are the safety violations cited and the proposed civil penalties against PEPCO: PEPCO failed to report all significant information relevant to the extent of damages of the failure. More specifically, PEPCO under-reported the amount of spill, which resulted in delayed federal response action. Proposed fine: $25,000. PEPCO failed to update their procedural manual for operations, maintenance and emergencies. Proposed fine: $75,000. PEPCO failed to have abnormal operating procedures for their reverse flow operations. Proposed fine: $500,000. PEPCO failed to maintain daily pumping station operating records. Proposed fine: $74,000. After the PEPCO pipeline failure, DOT shut down the entire 51.5-mile pipeline system. OPS issued a Corrective Action Order to PEPCO on April 12, 2000 outlining measures the company must complete before OPS will consider allowing the pipeline to reopen. NTSB Chairman Jim Hall to resign: On December 18, 2000, Acting Chairman Jim Hall announced that he will resign his position as Member of the National Transportation Safety Board on January 18. He joined the Board in October 1993 and has been Chairman since June 1994. During his tenure at NTSB, he has been an outspoken critic of several governmental agencies, including the Office of Pipeline Safety. Mr. Hall's replacement has not been announced. Visit Regulatory Compliance Partners on the Web at http://www.your-rcp.com or call us at 1-888-RCP-X-YES to see what we can do for you.