[Federal Register Volume 73, Number 93 (Tuesday, May 13, 2008)]
[Notices]
[Pages 27607-27608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10627]
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DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
[Docket No. PHMSA-RSPA-2004-19856]
Pipeline Safety: Notice to Operators of Gas Transmission
Pipelines on the Regulatory Status of Direct Sales Pipelines
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.
ACTION: Notice; Issuance of Advisory Bulletin.
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SUMMARY: PHMSA advises gas transmission pipeline operators that the
Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006
[[Page 27608]]
eliminated the former exception of direct sales natural gas pipelines
from the definition of an interstate gas pipeline facility. As a
result, direct sales gas transmission pipelines subject to the
jurisdiction of the Federal Energy Regulatory Commission (FERC)
formerly considered to be intrastate pipelines for purposes of the
pipeline safety laws are now defined as interstate pipelines. As
interstate pipelines, direct sales pipelines are subject to the
applicable Federal pipeline safety regulations and PHMSA is responsible
for regulatory oversight and enforcement. In some cases, inspections of
these pipelines may continue to be conducted by a State pipeline safety
agency acting as PHMSA's representative.
FOR FURTHER INFORMATION CONTACT: Cheryl Whetsel, (202) 366-4431, or by
e-mail at [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
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. Because of this exception, these pipelines
were considered to be intrastate pipelines and were regulated on a
state-by-state basis. Section 7 of the PIPES Act changed this by
eliminating the exception. As a result, direct sales gas transmission
pipelines subject to FERC jurisdiction formerly considered to be
intrastate pipelines for purposes of the pipeline safety laws are now
considered to be interstate pipelines.
As interstate gas pipeline facilities, direct sales pipelines are
subject to the applicable Federal pipeline safety regulations and PHMSA
is responsible for regulatory oversight and enforcement. Subjecting
direct sales gas pipelines to the same requirements as other interstate
gas pipelines should provide improved regulatory certainty and ensure
consistency in regulatory requirements.
In cases where a State has both an annual certification for gas
under 49 U.S.C. 60105 and an agreement under 49 U.S.C. 60106(b),
inspections of these direct sales pipelines may continue to be
conducted by a State pipeline safety agency acting as PHMSA's
representative although any enforcement action must be referred to
PHMSA. If the line has a State certification from the State Public
Utility Commission (PUC) that such State PUC has regulatory
jurisdiction over the rates and service of the line and is exercising
it, that would be grounds for concluding that the line is not subject
to FERC jurisdiction and therefore can be regulated as an intrastate
pipeline by a State having a certification for gas under 49 U.S.C.
60105. This change does not affect direct sales pipelines that are
intrastate pipelines because they extend from another intrastate line
to the consumer.
II. Advisory Bulletin (ADB-08-01)
To: Owners and Operators of Gas Transmission Pipeline Systems.
Subject: Notice to Operators of Gas Transmission Pipelines on the
Regulatory Status of Direct Sales Pipelines.
Advisory: PHMSA advises gas transmission pipeline operators that
the Pipeline Inspection, Protection, Enforcement, and Safety Act of
2006 eliminated the exception of direct sales natural gas pipelines
from the definition of an interstate gas pipeline facility. As a
result, direct sales gas transmission pipelines subject to the
jurisdiction of FERC formerly considered to be intrastate pipelines for
purposes of the pipeline safety laws are now defined as interstate
pipelines. As interstate pipelines, direct sales pipelines are subject
to the applicable Federal pipeline safety regulations and PHMSA is
responsible for regulatory oversight and enforcement. In some cases,
inspections of these pipelines may continue to be conducted by a State
pipeline safety agency acting as PHMSA's representative.
Authority: 49 U.S.C. chapter 601; 49 CFR 1.53.
Issued in Washington, DC, on May 7, 2008.
Jeffrey D. Wiess,
Associate Administrator for Pipeline Safety.
[FR Doc. E8-10627 Filed 5-12-08; 8:45 am]
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