[Federal Register Volume 75, Number 119 (Tuesday, June 22, 2010)]
[Proposed Rules]
[Pages 35366-35375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14998]
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DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
49 CFR Part 195
[Docket PHMSA-2008-0186]
RIN 2137-AE36
Pipeline Safety: Applying Safety Regulation to All Rural Onshore
Hazardous Liquid Low-Stress Lines
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Department of Transportation (DOT).
ACTION: Notice of Proposed Rulemaking.
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SUMMARY: PHMSA is proposing to amend its pipeline safety regulations to
apply safety regulations to rural low-stress hazardous liquid pipelines
that are not covered by safety regulations in 49 CFR Part 195. This
change complies with a mandate in the Pipeline Inspection, Protection,
Enforcement, and Safety Act of 2006 (PIPES Act).
DATES: Anyone interested in filing written comments on this Notice of
Proposed Rulemaking (NPRM) must do so by August 23, 2010. PHMSA will
consider late comments filed so far as practical.
ADDRESSES: Comments should reference Docket No. PHMSA-2008-0186 and may
be submitted in the following ways:
E-Gov Web site: http://www.regulations.gov. This Web site
allows the public to enter comments on any Federal Register notice
issued by any agency. Follow the instructions for submitting comments.
Fax: 1-202-493-2251.
Mail: DOT Docket Management System: U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue, SE., Washington DC, 20590-0001.
Hand Delivery: DOT Docket Management System; West Building
Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC
20590-0001 between 9 a.m. and 5 p.m., Monday through Friday, except
Federal holidays.
Instructions: You should identify the Docket ID PHMSA-2008-0186 at
the beginning of your comments. If you submit your comments by mail,
submit two copies. To receive confirmation that PHMSA received your
comments, include a self-addressed stamped postcard. Internet users may
submit comments at http://www.regulations.gov. Note: Comments are
posted without changes or edits to http://www.regulations.gov,
including any personal information provided. There is a privacy
statement published on http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For technical contents of the NPRM
contact Mike Israni by phone at 202-366-4571 or by e-mail at
[email protected]. For all other information contact Tewabe Asebe by
phone at 202-366-4595 or by e-mail at [email protected].
SUPPLEMENTARY INFORMATION: Until 2008, unless a rural low-stress
pipeline crossed a commercially navigable waterway, a hazardous liquid
pipeline operating at low-stress in a rural area was not regulated
under Federal pipeline safety regulations in 49 CFR Part 195. Section
195.2 defines a ``rural area'' as outside the limits of any
incorporated or unincorporated city, town, village, or any other
designated residential or commercial area, such as a subdivision, a
business or shopping center, or community development.
Because of the potential environmental damage a release from these
lines could pose, in 2006, PHMSA issued a NPRM (71 FR 52504), proposing
to apply a threat-focused set of safety requirements to larger-diameter
(8 \5/8\-inches or greater) rural onshore hazardous liquid low-stress
pipelines located in or within a quarter mile of an ``unusually
sensitive area (USA).'' USAs are defined in Sec. 195.6 as drinking
water or other ecological resources that are unusually sensitive to
environmental damage from a hazardous liquid pipeline release.
The Pipeline Inspection, Protection, Enforcement, and Safety Act of
2006 (PIPES Act), was signed into law on December 29, 2006, (Pub. L.
109-468). Section four of the PIPES Act (codified at 49 U.S.C.
60102(k)) requires PHMSA to ``issue regulations subjecting low-stress
hazardous liquid pipelines to the same standards and regulations as
other hazardous liquid pipelines.'' The Act also provides the new
regulations could be issued in phases.
The threat-focused set of requirements PHMSA proposed in the 2006
NPRM, although drawn from Part 195, would not have satisfied the ``same
standards and regulations'' requirement in the PIPES Act. PHMSA
concluded it would be inefficient to finalize that proposal and then
later impose the rest of the Part 195 requirements.
Implementation of the PIPES Act Mandate
PHMSA decided to implement the PIPES Act mandate in phases, in part
because PHMSA did not have complete data on the extent of rural low-
stress
[[Page 35367]]
pipelines that would be covered by the statutory mandate. Phase one
applied full Part 195 regulation to the higher-risk, larger-diameter
rural low-stress pipelines (i.e., those low-stress pipelines with a
diameter of 8\5/8\-inches or greater located in or within one-half mile
of an unusually sensitive area). These are the rural low-stress
pipelines that have more potential to cause harm to unusually sensitive
areas. These were also the rural low-stress pipelines on which PHMSA
had the most information to prepare a regulatory cost/benefit
evaluation.
Once PHMSA had more complete information on the extent of
unregulated rural low-stress pipelines, phase two would regulate all
smaller-diameter (less than 8\5/8\-inches diameter) rural low-stress
pipelines located in or within one-half mile of a USA and all rural
low-stress pipelines of any diameter located outside the one-half mile
USA buffer.
PHMSA presented its plan for phased rulemaking to the Technical
Hazardous Liquid Pipeline Safety Standards Committee (THLPSSC) \1\ in
January 2007. PHMSA explained that this phased approach would bring the
higher-risk pipelines under immediate regulation while PHMSA gathered
more comprehensive data for later rulemaking concerning the lower-risk
unregulated rural low-stress pipelines.
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\1\ The THLPSSC is a statutorily mandated advisory committee
that advises PHMSA about the technical feasibility, reasonableness
and cost-effectiveness of its proposed regulations. The committee
includes representatives of the pipeline industry, government
regulators, and the public. PHMSA must submit all new regulations
affecting hazardous liquid pipelines to this Committee for peer
review before the rules can be published.
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Phase One
To implement phase one, in 2007 PHMSA modified its 2006 NPRM via a
supplemental notice of proposed rulemaking (SNPRM) (72 FR 28008) that
proposed to apply all Part 195 requirements to any rural onshore
pipeline with a nominal diameter of 8\5/8\ inches or more and located
in or within one-half mile of a USA. The SNPRM also proposed to apply
reporting requirements in Subpart B of Part 195 to all rural low-stress
pipelines. This data was necessary for PHMSA to complete the regulatory
evaluation for the extension of all safety requirements to the
remaining rural low-stress pipelines in phase two. PHMSA published the
final rule on June 3, 2008 (73 FR 31634), which finalized the proposed
requirements.
Surveys
Because PHMSA did not have adequate information on the number of
operators with rural low-stress pipelines, or on the total mileage of
these lines in service, we initiated the following actions:
(1) We revised the Pipeline Safety Regulations to require operators
of any low-stress line (including those rural low-stress lines not
brought under safety regulation) to comply with the annual reporting
requirements and the incident reporting requirements of Part 195.
(2) On July 31, 2008 (73 FR 44800), OMB Control Number 2137-0623,
PHMSA published in the Federal Register a notice of OMB-approved survey
asking each operator of a rural low-stress hazardous liquid pipeline
for voluntary information concerning the mileage and characteristics of
these pipelines to assess the costs of subjecting rural low-stress
pipeline mileage to Part 195 regulation.
(3) Based on the information received in response to the notice,
PHMSA conducted two follow-up inquiries: (1) A request for information
from operators who operate rural low-stress lines to determine the
potential operating costs they were likely to incur to bring these
unregulated lines into compliance with Part 195 regulation; and (2)
Asked States with the majority of rural low-stress lines to identify
any incident data the State may have collected through the years.
Phase Two
With the information PHMSA gathered, we are now moving to phase two
to complete the requirement of the PIPES Act. In phase two, PHMSA is
proposing to apply Part 195 safety requirements to all rural low-stress
pipelines not included in the phase one rule. Thus, the pipelines
addressed by this proposed rule are those rural low-stress pipelines of
any diameter located more than one-half mile from a USA and those less
than 8\5/8\ inches in diameter located within one-half mile of a USA.
This phased approach results in the following distinct groups of
rural low-stress pipelines:
Rural low-stress pipelines that cross navigable waterways.
These are already subject to the safety requirements of Part 195. These
pipelines are not affected by this rulemaking.
Rural low-stress pipelines 8\5/8\ inches or greater in
diameter that are located in or within one-half mile of a USA. The
requirements of Part 195 were made applicable to these rural pipelines
in the phase one rule.
Rural pipelines less than 8\5/8\ inches in diameter that
are located within one-half mile of a USA.
Rural low-stress pipelines of any diameter that are
located more than one-half mile from a USA.
To implement the compliance dates and requirements for these
different groups, we are proposing to define several ``categories'' of
rural low-stress pipelines. These are as follows:
Category 1: Those rural low-stress pipelines that were
covered under the phase one rule;
Category 2: Rural low-stress pipelines of smaller diameter
(less than 8\5/8\ inches diameter) located in or within one-half mile
of a USA; and
Category 3: All other rural low-stress pipelines that were
not included in phase one.
This NPRM would retain the compliance deadlines established in
phase one for Category 1 pipelines. It would subject Category 2
pipelines to the same Part 195 requirements as those made applicable to
Category 1 pipelines in phase one but with different compliance
deadlines. PHMSA also proposes to apply all requirements of Part 195 to
Category 3 pipelines except for the integrity management requirements
of Sec. 195.452.
The phase one rule established a number of compliance deadlines for
the rural pipelines it addressed. These deadlines varied from
relatively near term (e.g., identifying all pipeline segments subject
to the phase one rule by April 3, 2009) to long term (e.g., completing
baseline integrity management assessments by July 3, 2015). We intend
to retain these deadlines in the regulations, while establishing new
compliance deadlines for those rural low-stress pipelines we are
covering in this phase two NPRM.
Integrity Management
Section 195.452 addresses integrity management (IM) requirements
for hazardous liquid pipelines. Operators must identify each pipeline
segment that could affect a high consequence area (HCA). PHMSA has
defined HCAs as populated areas, commercially navigable waterways and
USAs. HCAs are identified and displayed on maps available from the
National Pipeline Mapping System.
To comply with IM requirements, pipeline operators must first
determine which segments of their pipeline could affect an HCA. To do
this, an operator needs to compare its pipeline's location to the
locations of HCAs and determine which segments of the pipeline could
affect an HCA if there were a product release from the segment. These
[[Page 35368]]
comparisons have proven to be considerably more burdensome in practice
than PHMSA believed when IM rules were initially established. They
involve more than just comparison of maps of pipeline location to maps
of HCAs. Operators have had to consider the topography and nature of
ground cover around their pipelines to estimate the direction and
distance that released product might flow. Operators have also had to
consider the potential transport of released product via nearby
waterways, including such factors as seasonal variations in flow, the
effect of stream turbulence, and their ability to respond to a release
and contain further transport of spilled product.
During the Phase one rulemaking for rural low-stress pipelines,
PHMSA concluded it would be unnecessarily burdensome to require
operators of these pipelines to perform a complete ``could affect''
analysis to determine which rural low-stress pipeline segments would be
subject to IM requirements. Rather, PHMSA adopted a one-half mile
buffer around USAs \2\ as the ``could affect'' area (i.e., any rural
low-stress pipeline segment within the one-half mile buffer would be
subject to IM requirements). PHMSA found it unlikely a ``could affect''
analysis on a rural low-stress pipeline would result in a larger area
than the one-half mile buffer for application of IM requirements.
Available data showed that the largest spill on land from a low-stress
line traveled no more than two acres from the site of failure. This
data, coupled with the relatively lower pressure of low-stress
pipelines, led PHMSA to conclude that a one-half mile buffer was more
than adequate for application of IM requirements. The majority of
representatives on the THLPSSC agreed with this approach.
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\2\ The other component of HCAs, populated areas, was not
affected by the Phase One rulemaking and is not affected by this
NPRM since pipelines in populated areas are not, by definition, in
``rural areas'' and are already regulated.
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For phase two, PHMSA remains confident that the one-half mile
buffer continues to be an adequate ``could affect'' area that
identifies the vast majority (if not all) of rural low-stress pipelines
that could affect a USA. The smaller-diameter pipelines to which we
propose to apply integrity management regulation in this phase usually
release a smaller amount of product in a failure, which travels a
shorter distance within the environment than would the larger quantity
released from larger-diameter pipelines.
As in phase one, PHMSA has included an option for pipeline
operators to use ``could affect'' analyses in lieu of the one-half mile
buffer to determine which of their smaller-diameter low-stress
pipelines would be subject to IM requirements. PHMSA recognizes that
operators could use this option in circumstances where it is likely the
``could affect'' analysis would determine that a pipeline segment
cannot affect a USA (e.g., where the USA is uphill from the pipeline).
PHMSA concludes it would be unreasonable to exclude this option for
rural low-stress pipelines, since it can identify instances in which
application of IM requirements would be unnecessary.
This NPRM includes, as did the phase one rule, a provision
addressing newly identified USAs. Such new USAs could result in
additional pipeline segments meeting criteria for Category 1 or 2 rural
low-stress pipelines and thus become subject to IM requirements.
This NPRM would require that pipeline segments identified as
Category 1 or 2 continue to meet the requirements applicable to those
categories even if the boundaries of a USA are redefined so that the
pipeline segment (or portion thereof) is no longer within one-half mile
of the USA unless the operator determines that the segment could not
affect the USA. This provision adds no additional burden because
pipeline operators may simply continue to treat their pipelines as they
would have without the redefinition of USA boundaries.
Economic Burden
The phase one rule allowed operators of pipelines meeting specified
criteria to notify PHMSA if they would incur an excessive economic
burden in complying with the integrity management assessment
requirements. The criteria were designed for rural pipelines that carry
oil from a production facility and where the pipeline would be
abandoned or shut down as a result of the economic burden associated
with IM assessments. The phase one rule provides that PHMSA will stay
compliance with the integrity management assessment requirements while
it reviews the notification. Based on the outcome of the review, PHMSA
may grant the operator a special permit imposing alternative safety
requirements in lieu of an assessment.
For phase two, PHMSA considered extending the economic compliance
burden provision to Category 2 pipelines--those smaller diameter rural
low-stress pipelines located in or within one-half mile of a USA that
would be under IM regulation. Category 3 low-stress pipelines are not
subject to the IM requirements. However, PHMSA concluded that this was
not necessary because no Category 2 low-stress pipeline would meet the
criteria in the economic burden compliance provision of current Sec.
195.12(c) and that concerns about preserving oil production or
minimizing risk of alternative transport of crude oil from wells do not
apply to these pipelines. PHMSA's reasoning is based on the definition
of ``gathering line'' in Sec. 195.2. That Section defines any
``pipeline 219.1 mm (8\5/8\ inch) or less nominal outside diameter that
transports petroleum from a production facility'' as a gathering line.
Gathering lines are not subject to the provisions of Sec. 195.12.
Instead, requirements applicable to regulated gathering lines are
found in Sec. 195.11, and do not include IM requirements. As a result,
no low-stress pipeline of 8\5/8\ inch or less nominal diameter that
carries crude oil from a production facility is subject to IM
requirements, and it is not necessary to provide an economic burden
provision for these pipelines to ameliorate unintended impacts on
production. PHMSA invites comment on this reasoning and whether it is
necessary to provide an economic compliance burden provision applicable
to Category 2 low-stress pipelines similar to that included for those
in Category 1.
Proposed Rule
The NPRM would revise 49 CFR Part 195 to cover rural onshore low-
stress pipelines with a diameter smaller than 8\5/8\ inches located in
or within one-half mile of a USA and rural onshore low-stress pipelines
of any diameter located outside the one-half mile buffer from a USA.
Section-by-Section Analysis
Section 195.1 Which pipelines are covered by this Part?
Section 195.1 has been revised numerous times over the years to
include changes to the pipelines covered or excluded from the scope of
Part 195. Section 195.1 was revised in the phase one rule to provide
more clarity and to include the phase one rural low-stress pipelines
within the scope of Part 195. PHMSA is proposing to revise Sections
195.1(a) and (b) to include the rural low-stress pipelines we are
proposing to bring under Part 195 regulations in phase two. With the
exception of the phase two pipelines we are proposing to now regulate,
this NPRM is not changing any of the other covered or excluded
pipelines in this Part.
PHMSA is also proposing to correct an inadvertent error to Sec.
195.1 that was
[[Page 35369]]
adopted under the phase one rule. The error concerns the long standing
exception for low-stress pipelines subject to the regulations of the
U.S. Coast Guard. Under the phase one rule, Sec. 195.1 was incorrectly
revised to state that Part 195 does not apply to any pipeline subject
to the safety regulations of the U.S. Coast Guard. In this NPRM, we are
correcting Sec. 195.1 to state that Part 195 does not apply to any
low-stress pipeline subject to the safety regulations of the U.S. Coast
Guard.
Section 195.12 What requirements apply to low-stress pipelines in rural
areas?
This Section is being revised to clarify that all previously
unregulated low-stress pipelines in rural areas are now covered under
Part 195 regulation. This Section does not apply to rural low-stress
pipelines that cross a waterway used for commercial navigation because
they are already regulated under Part 195.
PHMSA proposes to revise this Section to define three categories of
rural low-stress pipelines (proposed Section 195.12(b)). Category 1
lines are those that were regulated in phase one (i.e., rural low-
stress pipelines with a diameter of 8\5/8\ inches or more located in or
within one-half mile of a USA). Category 2 pipelines would be those
rural low-stress pipelines of smaller diameter (less than 8\5/8\ inches
in diameter) located in or within one-half mile of a USA. Category 3
would be all remaining rural low-stress pipelines except for those that
cross navigable waterways (which are already regulated).
Section 195.12(c) would set forth the proposed requirements and
compliance dates for each category of pipeline. The requirements for
Category 1 rural low-stress pipelines are not affected. Operators of
Category 2 rural low-stress pipelines would have to comply with all
requirements of Part 195, including IM requirements. Operators of
Category 3 rural low-stress pipelines would be required to comply with
all requirements of Part 195 except IM requirements.
Proposed Section 195.12(c) also sets forth the proposed timetables
for compliance with various portions of Part 195. The compliance
deadlines established by the phase one final rule for Category 1 rural
low-stress pipelines remain unchanged. Except for the compliance
deadlines for the completion of the baseline assessments, we are
proposing to establish deadlines for Category 2 and Category 3 rural
low-stress pipelines in this NPRM by applying the same criteria to
Category 2 and Category 3 rural low-stress pipelines that we applied to
Category 1. For example, if we required a Category 1 operator to comply
with a requirement within 12 months of the effective date of the phase
one final rule, we are proposing the same 12-month time frame for an
operator of a Category 2 or Category 3 rural low-stress pipeline. In
phase one, PHMSA adopted compliance dates of seven years and 3\1/2\
years, respectively, for the completion of the baseline assessments.
PHMSA believes that it is appropriate to reduce the compliance
deadlines for these requirements considering the amount of time that
has transpired since the passage of the PIPES Act and the relatively
small number of miles that would be subject to these requirements.
Thus, we are proposing that operators of Category 2 pipelines complete
all baseline assessments within five years of the effective date of the
final rule and that at least 50 percent of the assessments be completed
within 30 months of the effective date of the final rule.
PHMSA established the proposed compliance deadlines for Category 2
and Category 3 pipelines using our judgment on how long it would take
an operator to implement the requirements without imposing undue
burden. PHMSA welcomes comment on whether the proposed time frames
achieve that goal.
As discussed above, PHMSA did not change the provision allowing
operators of some Category 1 rural low-stress pipelines to notify PHMSA
if they conclude that implementing the IM assessment requirements would
pose such an economic burden that they would abandon their pipelines.
This provision continues to be limited to Category 1 rural low-stress
pipelines carrying crude oil from production facilities and where
shutdown of the pipeline would cause loss of oil supply or a transition
to truck transportation. PHMSA (with assistance from DOE, as
appropriate) will review notifications and, if justified, may grant the
operator a special permit to allow continued operation of the pipeline
subject to alternative safety requirements. We would like comment on
whether this provision should be extended to Category 2 pipelines
meeting the same criteria.
Section 195.48 Scope
This Section was added in the phase one final rule. There had not
previously been a scope Section in Subpart B because all pipelines
subject to Part 195 were subject to all the reporting requirements in
Subpart B. This Section was added in phase one because the reporting
requirements of Subpart B were made applicable to all rural low-stress
pipelines, even those not subject to the technical requirements of the
phase one rule. Operators of those rural low-stress pipelines not
subject to the technical requirements of Part 195 under phase one were
not required to complete those portions of the annual report form that
relate to integrity management requirements and inspections.
With this NPRM, all rural low-stress pipelines are now subject to
all requirements of Part 195, except that Category 3 pipelines are not
subject to the IM requirements in Sec. 195.452. The exclusion of
portions of the annual report form related to IM has therefore been
modified to apply only to operators of Category 3 pipelines.
Regulatory Analyses and Notices
Executive Order 12866 and DOT Policies and Procedures
PHMSA considers this NPRM a non-significant regulatory action under
Section 3(f) of Executive Order 12866 (58 FR 51735; Oct. 4, 1993). The
NPRM is also non-significant under DOT regulatory policies and
procedures (44 FR 11034: February 26, 1979). PHMSA has prepared a
preliminary Regulatory Evaluation, a copy of which has been placed in
the docket.
This NPRM affects those rural low- stress pipelines of any diameter
that are more than one-half mile outside a USA and rural low-stress
pipelines less than 8\5/8\ inches in diameter that are located in or
within one-half mile of a USA. The following table presents the
estimates for the mileage affected by this proposed rulemaking:
Phase Two Eligible Mileage
------------------------------------------------------------------------
Miles inside Miles outside
Pipeline diameter USA USA
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< 8\5/8\''.............................. 100.5 443.2
>= 8\5/8\''............................. .............. 840.6
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Four sources of mileage data that provide varying levels of detail
were analyzed to derive these final mileage estimates:
The Regulatory Analysis for the low-stress I final rule by
PHMSA published in August 2006.
A survey of operators of low-stress pipelines.
The annual mileage data pipeline operators report to
PHMSA.
Mileage estimates reported to the National Pipeline
Mapping System (NPMS).
The estimate of 5,624 miles of rural low-stress pipeline made in
the phase
[[Page 35370]]
one regulatory analysis appears to be a high-end estimate. The results
of the survey PHMSA conducted identifies 1,575 miles and the NPMS
reports 1,672.9 miles, with the NPMS data excluding both intra-plant
miles and lines regulated in phase one. The PHMSA annual report
database includes 1,536 newly reported low-stress rural miles. Since
the data collected in the survey includes a variety of other
information used in this analysis, including characteristics of the
reported mileage, it is used for phase two rural low-stress pipeline
mileage estimates. Distribution percentages and assumptions relating to
the three phase two rural low-stress pipeline segments result in a
slightly lower estimate of miles than the original estimate that
resulted from the survey data. This final estimate is approximately
1,384 miles of eligible rural low-stress pipeline.
Costs of the Regulation
PHMSA estimates the 30-year net present values \3\ of compliance
costs for this NPRM to be $104.9 million. The operators of the
pipelines affected by the regulatory changes included in the NPRM are
expected to incur costs attributable to those changes. The costs of the
rulemaking will be those associated with bringing the affected
pipelines into compliance with Part 195, which has the following eight
Subparts:
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\3\ A 2.7 real discount rate is applied as suggested by OMB
Circular No. A-94 for 30-year net present values.
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Subpart A--General
Subpart B--Annual, Accident, and Safety-Related Condition
Reporting
Subpart C--Design Requirements
Subpart D--Construction
Subpart E--Pressure Testing
Subpart F--Operation and Maintenance
Subpart G--Qualification of Pipeline Personnel
Subpart H--Corrosion Control
In addition, the low-stress pipelines brought under Part 195 would
also need to comply with 49 CFR Part 199, the alcohol and drug testing
requirements.
Benefits of the Regulation
The 30-year net present value of benefits of this NPRM is $326.5
million. PHMSA expects the proposed regulatory changes to reduce the
number of incidents and the incident costs and consequences. The
ability of the NPRM to reduce or avoid these costs is considered to be
the primary benefit of the regulation and is referred to as traditional
benefits. Data on incident costs for rural low-stress pipelines are
generally not available because PHMSA has not regulated these pipelines
in the past. Moreover, the reduction in costs that the regulation would
cause is also unknown. The final 30-year net present value of benefits
of this NPRM is $326.5 million.
This NPRM also may produce benefits by preventing disruptions in
the fuel supply caused by pipeline failures. Any interruption in the
fuel supply impacts the U.S. economy by putting upward pressure on the
prices paid by businesses and consumers, as recent incidents on Alaskan
low-stress pipelines feeding major petroleum trunk lines have
illustrated. Supply disruptions also have national security
implications because they increase dependence on foreign sources of
oil.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980, as amended, requires
Federal agencies to conduct a separate analysis of the economic impact
of rules on small entities. The Regulatory Flexibility Act requires
that Federal agencies take small entities' concerns into account when
developing, writing, publicizing, promulgating, and enforcing
regulations.
Need for the Proposed Rule
This NPRM covers certain rural onshore low-stress hazardous liquid
pipelines. Beginning in 1991, Congress paid greater attention to the
risks that hazardous liquid and natural gas pipelines pose to the
environment. In the Pipeline Safety Act of 1992 (Pub. L. 102-508),
Congress gave DOT greater authority to protect the environment from
risks that pipelines pose. Congress continued to emphasize the need to
better protect the environment from the risks pipelines pose in the
Accountable Pipeline Safety and Partnership Act of 1996 (Pub. L. 104-
304). With the PIPES Act of 2006 (Pub. L. 109-468), Congress went
further and instructed DOT to apply all Part 195 requirements to
unregulated rural low-stress pipelines.
PHMSA decided to apply Part 195 requirements to rural low-stress
pipelines as a two-phase process. The phase one rulemaking covered
large diameter pipe (greater than or equal to 8\5/8\ inches in
diameter) located in or within one-half mile of a USA. These were the
higher risk rural low-stress pipelines. The second phase, which is
covered by this NPRM, covers the remaining unregulated onshore rural
low-stress pipelines. This includes small diameter (less than 8\5/8\
inches diameter) pipeline in or within one-half mile of a USA, and any
diameter rural low-stress pipeline not within one-half mile of a USA.
Description of Actions
PHMSA is bringing the remaining rural onshore low-stress pipelines
not regulated by phase one under the safety regulation of 49 CFR Part
195. These lines include rural low-stress pipelines with a diameter of
less than 8\5/8\ inches that are within one-half mile of a USA and
rural low-stress pipelines of any size diameter that are outside of the
one-half mile USA buffer.
Related Federal Rules and Regulations
There are currently no related rules or regulations issued by other
department or agencies of the Federal Government.
Identification of Potentially Affected Small Entities
In accordance with size standards published by the Small Business
Administration, a pipeline transportation business with 1,500 or fewer
employees is considered a small entity.\4\ Depending on the products
being transported, low-stress pipeline operators belong to the North
American Industry Classification System Code (NAICS) 486110, Pipeline
Transportation of Crude Oil, or NAICS 486910, and Pipeline
Transportation of Refined Petroleum Products. For both NAICS codes, a
business with 1,500 or fewer employees is considered a small entity.
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\4\ U.S. Small Business Administration ``Table of Small Business
Size Standards Matched to North American Industry Classification
System Codes. August 22, 2008. http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf.
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PHMSA made an extensive effort to identify small and other
operators of rural low-stress lines. PHMSA surveyed these operators to
get better information about the number of miles and compliance costs
of rural hazardous liquid low-stress pipelines.
To ensure that the response rate was maximized, PHMSA publicized
its plans to conduct the survey in (1) a 60-day Federal Register (FR)
notice published on September 6, 2006, (71 FR 52504) and (2) a 30-day
FR notice published on September 7, 2007, (72 FR 51489). No comments
were submitted to either notice. PHMSA then announced the availability
of the survey in a FR notice published on July 31, 2008, (73 FR 44800).
PHMSA delivered the survey and a letter explaining the importance
of the study via three methods:
1. A version of the survey that allowed operators to directly input
responses was posted on the PHMSA
[[Page 35371]]
OPS Online Data Entry Web site (ODES). An e-mail announcing the survey
was sent to the contact person responsible for each company's most
recent annual report submission.
2. Respondents were also able to print an electronic version of the
survey directly from the e-mail received and mail or fax a completed
hard copy to the Volpe National Transportation Systems Center (Volpe
Center).
3. Finally, in an effort to reach companies that currently operate
unregulated pipelines exclusively, PHMSA and the Volpe Center worked
with the American Petroleum Institute, the Association of Oil Pipelines
and the Independent Petroleum Association of America to announce and
distribute the survey to their members via their e-mail newsletters.
Of the 112 operators that responded, 21 reported rural low-stress
pipeline mileage. PHMSA then conducted additional follow-up with these
operators. Only 12 of the 20 operators were identified as actually
having low-stress pipeline mileage eligible for the Phase 2 rulemaking.
Information on these companies was collected from a compilation of Dun
& Bradstreet data purchased by PHMSA, online company profiles and
direct phone calls. The enterprise name, number of employees, revenues,
profits, compliance costs and affected mileage are listed in Exhibit 5-
1.
[GRAPHIC] [TIFF OMITTED] TP22JN10.004
Exhibit 5-1 shows that three of the 11 enterprises fall under 1,500
employees and are thus considered small entities. The cost estimation
analysis, described in the Regulatory Analysis, concluded that the low-
stress mileage held by two of these operators is already in compliance
with Part 195. Therefore, these two small entities will not be
adversely affected by the rulemaking. The other small entity, which has
four miles of affected low-stress mileage, reports an initial
compliance cost of $475,000 and recurring costs of $100,000 every five
years.
Alternate Proposals for Small Businesses
The Regulatory Flexibility Act directs agencies to establish
exceptions and differing compliance standards for small businesses,
where it is possible to do so, and still meet the objectives of
applicable regulatory statutes.
The phase two Regulatory Analysis analyzes six regulatory
alternatives. They are as follows:
Alternative 1: Apply all Part 195 Requirements to All Eligible
rural low-stress pipelines.
Alternative 2: Apply all Part 195 Requirements to Small Diameter
rural low-stress pipelines located in or within one-half mile of a USA.
Alternative 3: Apply all Part 195 requirements to rural low-stress
pipelines equal to or greater than 8\5/8\ inches in diameter located
farther than one-half mile from a USA.
Alternative 4: Apply all Part 195 requirements to rural low-stress
pipelines less than 8\5/8\ inches in diameter outside one-half mile of
a USA.
Alternative 5: Apply all Part 195 requirements except Subpart H to
all rural low-stress pipelines not currently regulated.
Alternative 6: Apply all Part 195 requirements except the Integrity
Management Program to all rural low-stress pipelines not currently
regulated.
All six alternatives generate a benefit greater than the compliance
cost. If the proposed Alternative 1, which regulates all eligible rural
low-stress pipelines, is a significant economic burden to the small
operator identified in the survey or to any other small entity not
identified in this Regulatory Flexibility Analysis, PHMSA can consider
applying one of the other five alternatives to small businesses to
reduce compliance costs. Alternatives 5 and 6 are designed to eliminate
the compliance costs associated with Subpart H (Corrosion Control
Programs) and the Integrity Management Program (IMP). A significant
portion of the small company's initial costs and all of its recurring
costs is associated with the
[[Page 35372]]
IMP. Therefore, Alternative 6 may be a viable requirement for such
operators.
Alternative 1 is the alternative that PHMSA has selected. This
alternative not only complies with the statutory requirement but also
increases the level of safety associated with the transportation of
hazardous liquids through low-stress pipelines to a level commensurate
with other pipelines that are already subject to the pipeline safety
regulations.
Conclusion
From the information we have gathered, this NPRM will have an
economic impact on one known small entity. Therefore, under Section 605
of the Regulatory Flexibility Act, this NPRM will not have a
significant impact on a substantial number of small entities.
Executive Order 13175
PHMSA has analyzed this NPRM according to the principles and
criteria in Executive Order 13175, ``Consultation and Coordination with
Indian Tribal Governments.'' Because this NPPRM would not significantly
or uniquely affect the communities of the Indian tribal governments or
impose substantial direct compliance costs, the funding and
consultation requirements of Executive Order 13175 do not apply.
Paperwork Reduction Act
Pursuant to 5 CFR 1320.8(d), PHMSA is required to provide
interested members of the public and affected agencies with an
opportunity to comment on information collection and recordkeeping
requests. This proposed rule identifies several information collection
requests that PHMSA will submit to the Office of Management and Budget
(OMB) for approval based on the requirements in this proposed rule.
These information collections are contained in the pipeline safety
regulations, 49 CFR Parts 190-199.
PHMSA has developed revised burden estimates to reflect changes in
this proposed rule. The following information is provided for each
information collection: (1) Title of the information collection; (2)
OMB control number; (3) type of request; (4) abstract of the
information collection activity; (5) description of affected public;
(6) estimate of total annual reporting and recordkeeping burden; and
(7) frequency of collection. PHMSA estimates that based on the
proposals in this rule, the current information collection burden for
the following information collections will be revised as follows:
Title of Information Collection: Transportation of Hazardous
Liquids by Pipeline: Recordkeeping and Accident Reporting.
OMB Control Number: 2137-0047.
Type of Request: Revision of a currently approved information
collection.
Abstract: Hazardous liquid pipeline operators must keep records to
ensure that their pipelines are operated safely. Operators must also
report accidents.
Type of Respondents: Hazardous Liquid Operators.
Total Annual Number of Respondents: 300.
Total Annual Responses: 450.
Total Annual Burden Hours: 50,507 hours (initial increase of 1,860
hours).
Frequency of Collection: On occasion.
Title of Information Collection: National Pipeline Mapping Program.
OMB Control Number: 2137-0596.
Type of Request: Revision of a currently approved information
collection.
Abstract: The operator of a pipeline facility (except distribution
lines and gathering lines) provides information to the PHMSA on the
characteristics of their pipeline system. The submitted information
includes updates to annual mapping information for each mile of
pipeline.
Type of Respondents: Pipeline Facility Operators (except
distribution lines and gathering lines).
Total Annual Number of Respondents: 894.
Total Annual Responses: 894.
Total Annual Burden Hours: 16,912 hours (initial increase of 600
hours).
Frequency of Collection: Annual.
Title of Information Collection: Pipeline Integrity Management in
High Consequence Areas (Operators with less than 500 Miles of Hazardous
Liquid Pipelines).
OMB Control Number: 2137-0605.
Type of Request: Revision of a currently approved information
collection.
Abstract: Hazardous Liquid Operators with less than 500 miles of
Pipelines are required to continual assess and evaluate the integrity
of their pipeline through inspection or testing. Such operators must
also implement remedial, preventive, and mitigative actions on these
pipelines.
Type of Respondents: Hazardous Liquid Operators (w/less than 500
miles of pipelines).
Total Annual Number of Respondents: 132.
Total Annual Responses: 132.
Total Annual Burden Hours: 268,560 hours (initial increase of 600
hours).
Frequency of Collection: On occasion.
Title of Information Collection: Public Awareness Program.
OMB Control Number: 2137-0622.
Type of Request: Revision of a currently approved information
collection.
Abstract: Current regulations require pipeline operators to develop
and implement public awareness programs. Public awareness and
understanding of pipeline operations is vital to the continued safe
operation of pipelines. Upon request, operators must submit their
completed programs to the PHMSA or, in the case of an intrastate
pipeline facility operator, the appropriate State agency.
Type of Respondents: Pipeline Operators.
Total Annual Number of Respondents: 22,500.
Total Annual Responses: 22,500.
Total Annual Burden Hours: 517,720 hours (initial increase of 240
hours).
Frequency of Collection: On occasion.
Requests for copies of these information collections should be
directed to Cameron Satterthwaite, Office of Pipeline Safety (PHP-30),
Pipeline Hazardous Materials Safety Administration (PHMSA), 2nd Floor,
1200 New Jersey Avenue, SE., Washington, DC 20590-0001, Telephone (202)
366-8553.
Send comments directly to the Office of Management and Budget,
Office of Information and Regulatory Affairs, Attn: Desk Officer for
the Department of Transportation, 725 17th Street, NW., Washington, DC
20503. Comments should be submitted on or prior to August 23, 2010.
Unfunded Mandates Reform Act of 1995
This NPRM would not impose unfunded mandates under the Unfunded
Mandates Reform Act of 1995. It would not result in costs of $141.3
million or more to either State, local, or tribal governments, in the
aggregate, or to the private sector, and is the least burdensome
alternative that achieves the objective of the NPRM.
National Environmental Policy Act
The National Environmental Policy Act (NEPA) requires Federal
agencies to integrate environmental values into their decision making
processes by considering the environmental impacts of their proposed
actions and reasonable alternatives to those actions. PHMSA conducted a
preliminary environmental assessment of the application of phase two
safety regulations to rural onshore hazardous liquid pipelines. This
preliminary environmental assessment examines the environmental impacts
the
[[Page 35373]]
NPRM, and reasonable alternatives to those actions, would have on the
environment.
The preliminary environmental assessment found that the NPRM would
not significantly affect the quality of the environment. This NPRM
would require only limited physical modification or other work that
would disturb pipelines, such as identifying segments of pipelines
meeting the regulatory definitions, inspection and testing, installing
and maintaining line markers, implementing corrosion controls, pipeline
cleaning, and establishing integrity assessment programs. The
preliminary environmental assessment concludes the expected reductions
in hazardous liquid spills are a minor to moderate positive
environmental impact offsetting the negligible negative environmental
impacts associated with implementing the rulemaking. The full
preliminary environmental assessment is available for review in the
public docket.
Executive Order 13132
PHMSA has analyzed this NPRM according to the principles and
criteria contained in Executive Order 13132 (``Federalism''). This NPRM
would not (1) have substantial direct effects on the States, the
relationship between the national government and the States, or the
distribution of power and responsibilities among the various levels of
government; (2) impose substantial direct compliance costs on State and
local governments; or (3) preempt State law. Therefore, the
consultation and funding requirements of Executive Order 13132 do not
apply.
Executive Order 13211
This NPRM is not a ``significant energy action'' under Executive
Order 13211. It is not likely to have a significant adverse effect on
the supply, distribution, or use of energy. Furthermore, this NPRM has
not been designated by the Administrator of the Office of Information
and Regulatory Affairs as a significant energy action.
List of Subjects in 49 CFR Part 195
Carbon dioxide, Petroleum, Pipeline safety, Reporting and
recordkeeping requirements.
For the reasons provided in the preamble, PHMSA proposes to amend
49 CFR Part 195 as follows:
PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE
1. The authority citation for Part 195 continues to read as
follows:
Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60118;
and 49 CFR 1.53.
2. Section 195.1 is revised to read as follows:
Sec. 195.1 Which pipelines are covered by this part?
(a) Covered. Except for the pipelines listed in paragraph (b) of
this section, this part applies to pipeline facilities and the
transportation of hazardous liquids or carbon dioxide associated with
those facilities in or affecting interstate or foreign commerce,
including pipeline facilities on the Outer Continental Shelf (OCS).
Covered pipelines include, but are not limited to:
(1) Any pipeline that transports a highly volatile liquid (HVL);
(2) Any pipeline segment that crosses a waterway currently used for
commercial navigation;
(3) Except for a gathering line not covered by paragraph (a)(4) of
this Section, any pipeline located in a rural or non-rural area of any
diameter regardless of operating pressure;
(4) Any of the following onshore gathering lines used for
transportation of petroleum:
(i) A pipeline located in a non-rural area;
(ii) A regulated rural gathering line as provided in Sec. 195.11;
or
(iii) A pipeline located in an inlet of the Gulf of Mexico as
provided in Sec. 195.413.
(b) Excepted. This Part does not apply to any of the following:
(1) Transportation of a hazardous liquid transported in a gaseous
state;
(2) Transportation of a hazardous liquid through a pipeline by
gravity;
(3) Transportation of a hazardous liquid through any of the
following low-stress pipelines:
(i) A pipeline subject to safety regulations of the U.S. Coast
Guard; or
(ii) A pipeline that serves refining, manufacturing, or truck,
rail, or vessel terminal facilities, if the pipeline is less than one
mile long (measured outside facility grounds) and does not cross an
offshore area or a waterway currently used for commercial navigation;
(4) Transportation of petroleum through an onshore rural gathering
line that does not meet the definition of a ``regulated rural gathering
line'' as provided in Sec. 195.11. This exception does not apply to
gathering lines in the inlets of the Gulf of Mexico subject to Sec.
195.413;
(5) Transportation of hazardous liquid or carbon dioxide in an
offshore pipeline in State waters where the pipeline is located
upstream from the outlet flange of the following farthest downstream
facility: The facility where hydrocarbons or carbon dioxide are
produced or the facility where produced hydrocarbons or carbon dioxide
are first separated, dehydrated, or otherwise processed;
(6) Transportation of hazardous liquid or carbon dioxide in a
pipeline on the OCS where the pipeline is located upstream of the point
at which operating responsibility transfers from a producing operator
to a transporting operator;
(7) A pipeline segment upstream (generally seaward) of the last
valve on the last production facility on the OCS where a pipeline on
the OCS is producer-operated and crosses into State waters without
first connecting to a transporting operator's facility on the OCS.
Safety equipment protecting PHMSA-regulated pipeline segments is not
excluded. A producing operator of a segment falling within this
exception may petition the Administrator, under Sec. 190.9 of this
chapter, for approval to operate under PHMSA regulations governing
pipeline design, construction, operation, and maintenance;
(8) Transportation of a hazardous liquid or carbon dioxide through
onshore production (including flow lines), refining, or manufacturing
facilities or storage or in-plant piping systems associated with such
facilities;
(9) Transportation of a hazardous liquid or carbon dioxide:
(i) By vessel, aircraft, tank truck, tank car, or other non-
pipeline mode of transportation; or
(ii) Through facilities located on the grounds of a materials
transportation terminal if the facilities are used exclusively to
transfer hazardous liquid or carbon dioxide between non-pipeline modes
of transportation or between a non-pipeline mode and a pipeline. These
facilities do not include any device and associated piping that are
necessary to control pressure in the pipeline under Sec. 195.406(b);
or (10) Transportation of carbon dioxide downstream from the applicable
following point:
(i) The inlet of a compressor used in the injection of carbon
dioxide for oil recovery operations, or the point where recycled carbon
dioxide enters the injection system, whichever is farther upstream; or
(ii) The connection of the first branch pipeline in the production
field where the pipeline transports carbon dioxide to an injection well
or to a header or manifold from which a pipeline branches to an
injection well.
(c) Breakout tanks. Breakout tanks subject to this Part must comply
with requirements that apply specifically to breakout tanks and, to the
extent
[[Page 35374]]
applicable, with requirements that apply to pipeline systems and
pipeline facilities. If a conflict exists between a requirement that
applies specifically to breakout tanks and a requirement that applies
to pipeline systems or pipeline facilities, the requirement that
applies specifically to breakout tanks prevails. Anhydrous ammonia
breakout tanks need not comply with Sec. Sec. 195.132(b), 195.205(b),
195.242(c) and (d), 195.264(b) and (e), 195.307, 195.428(c) and (d),
and 195.432(b) and (c).
3. Section 195.12 is revised to read as follows:
Sec. 195.12 What requirements apply to low-stress pipelines in rural
areas?
(a) General. This section sets forth the requirements for each
category of low-stress pipeline in a rural area set forth in paragraph
(b) of this section. This section does not apply to a rural low-stress
pipeline regulated under this part as a low-stress pipeline that
crosses a waterway currently used for commercial navigation.
(b) Categories. An operator of a rural low-stress pipeline must
meet the applicable requirements and compliance deadlines for the
category of pipeline set forth in paragraph (c) of this section. For
purposes of this section, a rural low-stress pipeline is a Category 1,
2, or 3 pipeline based on the following criteria:
(1) A Category 1 rural low-stress pipeline:
(i) Has a nominal diameter of 8-5/8 inches (219.1 mm) or more;
(ii) Is located in or within one-half mile (.80 km) of an unusually
sensitive area (USA) as defined in Sec. 195.6; and
(iii) Operates at a maximum pressure established under Sec.
195.406 corresponding to:
(A) A stress level equal to or less than 20-percent of the
specified minimum yield strength of the line pipe; or
(B) If the stress level is unknown or the pipeline is not
constructed with steel pipe, a pressure equal to or less than 125 psi
(861 kPa) gauge.
(2) A Category 2 rural pipeline:
(i) Has a nominal diameter of less than 8-5/8 inches (219.1mm);
(ii) Is located in or within a half mile (.80 km) of an unusually
sensitive area (USA) as defined in Sec. 195.6; and
(iii) Operates at a maximum pressure established under Sec.
195.406 corresponding to:
(A) A stress level equal to or less than 20-percent of the
specified minimum yield strength of the line pipe; or
(B) If the stress level is unknown or the pipeline is not
constructed with steel pipe, a pressure equal to or less than 125 psi
(861 kPa) gauge.
(3) A Category 3 rural low-stress pipeline:
(i) Has a nominal diameter of any size and is not located in or
within a half mile (.80 km) of an unusually sensitive area (USA) as
defined in Sec. 195.6; and
(ii) Operates at a maximum pressure established under Sec. 195.406
corresponding to a stress level equal to or less than 20-percent of the
specified minimum yield strength of the line pipe; or
(iii) If the stress level is unknown or the pipeline is not
constructed with steel pipe, a pressure equal to or less than 125 psi
(861 kPa) gauge.
(c) Applicable requirements and deadlines for compliance. An
operator must comply with the following compliance dates depending on
the category of pipeline determined by the criteria in paragraph (b)
(1) of this section:
(1) An operator of a Category 1 pipeline must:
(i) Identify all segments of pipeline meeting the criteria in
paragraph (b)(1) of this section before April 3, 2009.
(ii) Beginning no later than January 3, 2009, comply with the
reporting requirements of subpart B of this part for the identified
segments.
(iii) Integrity management requirements--
(A) Establish a written program that complies with Sec. 195.452
before July 3, 2009, to assure the integrity of the pipeline segments.
Continue to carry out such program in compliance with Sec. 195.452.
(B) An operator may conduct a determination per Sec. 195.452(a) in
lieu of the half mile buffer.
(C) Complete the baseline assessment of all segments in accordance
with Sec. 195.452(c) before July 3, 2015, and complete at least 50-
percent of the assessments, beginning with the highest risk pipe,
before January 3, 2012.
(iv) Comply with all other safety requirements of this part, except
subpart H, before July 3, 2009. Comply with the requirements of subpart
H before July 3, 2011.
(2) An operator of a Category 2 pipeline must:
(i) Identify all segments of pipeline before [date 9 months
following effective date of final rule].
(ii) Beginning no later than January 3, 2009, comply with the
reporting requirements of subpart B of this part for the identified
segments.
(iii) Integrity management requirements--
(A) Establish a written integrity management program that complies
with Sec. 195.452 before [date 12 months following effective date of
final rule] to assure the integrity of the pipeline segments. Continue
to carry out such program in compliance with Sec. 195.452.
(B) An operator may conduct a determination per Sec. 195.452(a) in
lieu of the half mile buffer.
(C) Complete the baseline assessment of all segments in accordance
with Sec. 195.452(c) before [date 60 months following the effective
date of final rule] and complete at least 50-percent of the
assessments, beginning with the highest risk pipe, before [date 30
months following the effective date of final rule].
(iv) Comply with all other safety requirements of this part, except
subpart H, before [date 12 months following effective date of final
rule]. Comply with subpart H of this part before [date 36 months
following effective date of final rule].
(3) An operator of a Category 3 pipeline must:
(i) Identify all segments of pipeline before [date 9 months
following effective date of final rule].
(ii) Comply with all safety requirements of this part, except the
requirements in Sec. 195.452, subpart B, and the requirements in
subpart H, before [date 12 months following effective date of final
rule].
(A) Comply with subpart B of this part by January 3, 2009.
(B) Comply with subpart H of this part before [date 36 months
following effective date of final rule].
(d) Economic compliance burden.
(1) An operator may notify PHMSA in accordance with Sec.
195.452(m) of a situation meeting the following criteria:
(i) The pipeline is a Category 1 rural low-stress pipeline;
(ii) The pipeline carries crude oil from a production facility;
(iii) The pipeline, when in operation, operates at a flow rate less
than or equal to 14,000 barrels per day; and
(iv) The operator determines it would abandon or shut-down the
pipeline as a result of the economic burden to comply with the
assessment requirements in Sec. 195.452(d) or 195.452((j).
(2) A notification submitted under this provision must include, at
minimum, the following information about the pipeline: Its operating,
maintenance and leak history; the estimated cost to comply with the
integrity assessment requirements (with a brief description of the
basis for the estimate); the estimated amount of production from
affected wells per year, whether wells will be shut in or alternate
transportation used, and if alternate transportation will be used, the
estimated cost to do so.
(3) When an operator notifies PHMSA in accordance with paragraph
(d)(1) of
[[Page 35375]]
this section, PHMSA will stay compliance with Sec. Sec. 195.452(d) and
195.452 (j)(3) until it has completed an analysis of the notification.
PHMSA will consult the Department of Energy, as appropriate, to help
analyze the potential energy impact of loss of the pipeline. Based on
the analysis, PHMSA may grant the operator a special permit to allow
continued operation of the pipeline subject to alternative safety
requirements.
(e) Changes in unusually sensitive areas.
(1) If, after June 3, 2008, an operator identifies a new USA that
causes a segment of pipeline to meet the criteria in paragraph (b) of
this section as a Category 1 or Category 2 rural low-stress pipeline,
the operator must:
(i) Comply with the integrity management program requirement in
paragraph (c)(1)(iii)(A) or (c)(2)(iii)(A) of this section, as
appropriate, within 12 months following the date the area is identified
regardless of the prior categorization of the pipeline; and
(ii) Complete the baseline assessment required by paragraph
(c)(1)(iii)(C) or (c)(2)(iii)(C) of this section, as appropriate,
according to the schedule in Sec. 195.452(d)(3).
(2) If a change to the boundaries of a USA cause a Category 1 or
Category 2 pipeline segment to no longer be within one-half mile of a
USA, an operator must continue to comply with paragraph (c)(1)(iii) or
paragraph (c)(2)(iii) of this section, as applicable, with respect to
that segment unless the operator determines that a release from the
pipeline could not affect the USA.
(f) Record Retention. An operator must maintain records
demonstrating compliance with each requirement applicable to the
category of pipeline according to the following schedule.
(1) An operator must maintain the segment identification records
required in paragraph (c)(1)(i), (c)(2) (i) or (c)(3)(i) of this
section for the life of the pipe.
(2) An operator must maintain the records necessary to demonstrate
compliance with each applicable requirement set forth in paragraph (c)
of this section according to the record retention requirements of the
referenced section or subpart.
4. Section 195.48 is revised to read as follows:
Sec. 195.48 Scope.
This subpart prescribes requirements for periodic reporting and for
reporting of accidents and safety-related conditions. This subpart
applies to all pipelines subject to this part. An operator of a
Category 3 rural low-stress pipeline meeting the criteria in Sec.
195.12 is not required to complete those parts of the hazardous liquid
annual report form PHMSA F 7000-1.1 associated with integrity
management or high consequence areas.
Issued in Washington, DC, on June 16, 2010.
Jeffrey D. Wiese,
Associate Administrator for Pipeline Safety.
[FR Doc. 2010-14998 Filed 6-21-10; 8:45 am]
BILLING CODE 4910-60-P