# The Dow Chemical Company — Pipeline Safety Interpretation

**Citation:** PI-17-0007  
**Type / status:** guidance / guidance  
**Agency:** Pipeline and Hazardous Materials Safety Administration  
**Effective:** Not stated  
**Published:** 2017-12-13

PI-17-0007 response to The Dow Chemical Company.

## Document text

<<<PAGE 1>>>

U.S. Department
ofTransportation
Pipeline and Hazardous Materials
Safety Administration
1200 New Jersey Avenue SE
Washington DC 20590
DEC 0 4 2 0 17
Ms. Jennifer Ashcraft
Senior Regulatory Compliance Specialist
The Dow Chemical Company
2301 N. Brazosport Blvd., B-101
Freeport, TX 77541-3257
Dear Mr. Ashcraft:
In a March 31, 201 7, letter to the Pipeline and Hazardous Materials Safety Administration
(PHMSA), you requested an interpretation of 49 CFR Part 192 for your single gas line at Dow
Chemical Company(Dow)'s Seadrift Operations manufacturing facility in Seadrift, Texas. You
had previously requested an interpretation on these facts from the Railroad Commission of
Texas.
You provided the following information
Seadrift Operations is located on 4, 700 acres with 9 manufacturing plants representing
many of Dow's global businesses. Seadrift Operations purchases methane from multiple
pipeline operators to use for operating various area of the plant. All of the gas is
delivered to Dow on Dow property. Dow is the customer and the consumer of all
purchased gas. Dow meets the definition of a" large volume customer" with respect to 49
CFR Part 192. All of the in-plant gas piping that Dow owns and operates is located on
Dow property, with the exception of 220-feet of a single 1.5-inch line that crosses a
public thoroughfare (TX-185).
You stated that the 1.5-inch pipeline carries methane and operates at < 20% SMYS. You
provided regulatory information on 49 CFR Part 195 that you believe would exclude this line
from Federal pipeline safety regulations if this line were a hazardous liquid line. Therefore, you
requested PHMSA's interpretation and position on the applicability of the in-plant piping
exemption to this gas line and in general for applying to other Dow situations. Also, you
referenced 2010 and 1998 PHMSA interpretations that you believe are applicable to your
request.
The 2010 interpretation states that "piping operated by the facility operator entirely on the
grounds of the facility is considered 'in-plant piping' and would not be subject to the pipeline
safety regulations." It continues, however, that the gas pipelines at issue in that interpretation
"are not located on the geographically contiguous grounds of a facility. Rather these lines depart
[the operator's property] and cross roads and highways accessed by the public, albeit for
relatively short distances. To the extent such lines are not on plant property, they are subject to
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations (49 CFR
Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts
presented by the person reqµesting the clarification. Interpretations do not create legally-enforceable rights or obligations and are provided to
help the public understand how to comply with the regulations.

<<<PAGE 2>>>

2
the pipeline safety laws." (emphasis added). The interpretation also states that although PHMSA
has chosen not to enforce the Federal gas pipeline safety regulations in Part 192 on such lines, it
would "not object to a State regulating the portions of such lines that are not on plant property."
While the "Regulatory Review: Hazardous Liquid and Carbon Dioxide Pipeline Safety
Standards" rulemaking (59 FR 33,388 (June 28, 1994)) and 1998 PHMSA interpretation cited by
Dow both state there is an exception for in-plant piping that crosses a single public thoroughfare,
the scope of the rulemaking and 1998 interpretation was Part 195 of PHMSA's regulations.
Many of the Part 192 and 195 regulations are similar, but in this case, the 2010 interpretation
clearly shows that the application of in-plant piping is different for Part 192 than the rulemaking
and 1998 interpretation treat in-plant piping for Part 195. Because the 2010 interpretation
directly addresses Part 192, as does Dow's request, the 2010 interpretation governs Dow's
situation.
Based upon the 2010 interpretation, Dow's 1.5-inch pipeline is subject to Federal pipeline safety
regulations. It leaves Dow's property and crosses a public highway before reentering Dow's
property. As pointed out in the 2010 interpretation, "To the extent such lines are not on plant
property, they are subject to the pipeline safety laws." Likewise, though PHMSA may choose
not to enforce its regulations on these short pipelines, but PHMSA does not object where the
state regulating the portions of such lines does enforce the applicable regulations. Therefore,
because the Railroad Commission of Texas has regulatory authority over pipeline safety in
Texas, it may enforce its pipeline safety regulations on the 1.5-inch pipeline with PHMSA's
support.
It should be noted that the Railroad Commission of Texas has regulatory authority over intrastate
gas pipeline safety in Texas and may impose additional or more stringent safety measures than
the Federal regulations.
lfwe can be of further assistance, please contact Tewabe Asebe at 202-366-5523.
Sincerely,
Jo
Director, Office of Standards
and Rulemaking
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations
(49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the
specific facts presented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and
are provided to help the public understand how to comply with the regulations.

<<<PAGE 3>>>

March 31, 2017
CERTIFIED MAIL #7015 0640 0001 7680 2104
The Dow Chemical Company
2301 N. Brazosport Blvd.
Freeport, Texas 77541
USA
Mr. John A. Gale
Director, Office of Standards and Rulemaking
PHMSA, U.S. Departnient of Transportation
1200 New Jersey Averue, SE
Washington, D.C. 2050-0001
APR 052011
Re: Request for Witten Regulatory Interpretation on PHMSA Jurisdiction
The Dow Cheiiical Company
Dear Mr. Gale:
The Dow Chemical Cdmpany, respectfully requests a written interpretation concerning the applicability
of PHMSA Pipeline Stfety Regulations contained in 49 CFR § 192 to a single gas line at Dow's Seadrift
Operations manufactu4ng facility in Seadrift, Texas. Tn Texas, regulatory authority over pipeline safety
is delegated to the Railroad Commission of Texas, who has adopted the federal pipeline safety standards,
including 49 CFR § 192, in Texas Administrative Code, Title 16, Part 1, Chapter 8 (referenced as 16 TAC
§8).
Seadrift Operations is ocated on 4,700 acres with 9 manufacturing plants representing many of Dow's
global businesses. Se*lrift Operations purchases methane from multiple pipeline operators to use for
operating various area of the plant. All of the gas is delivered to Dow on Dow property. Dow is the
customer and the consmer of all purchased gas. Dow meets the definition of a "large volume customer"
with respect to 49 CF1 Part 192. All of the in-plant gas piping that Dow owns and operates is located on
Dow property, with th exception of 220-feet of a single 1 .5 -inch line that crosses a public thoroughfare
(TX-185). A map of this line is provided in Attachment 1.
Dow understands that, y definition, transmission ends upon delivery to a large volume customer. Dow
also understands that 1irt 192 applies to pipelines operating at >20% SMYS. This 1.5-inch methane line
is not involved in transportation in or affecting interstate commerce, and it operates at <20% SMYS;
therefore, Dow believes that this line is not a transmission line. This line is also clearly not a gathering
line, since it doesn't stjtrt at a production facility. The only other Part 192 definition for a regulated
pipeline is distribution line, which is a pipeline other than a transmission or gathering line. PHMSA's
Inspector Training & Qualifications Glossary further defines a distribution line as, "A pipeline that carries
or controls the supply of natural gas from a town border or city gate and moves the gas to the customer.
(A distribution line is network ofpiping downstream ofa distribution center used to supply gas to its
customers. In practica terms, the distribution piping ends at the customer's regulator and/or meter.)"
littn://www.ohnisa.clot eov/staticfiles/PHMSA/Pioeliiie/TOGlossarv/G!ossarv.htnil#DL. This line is not
a distribution line as dfined in PHMSA' s Inspector Training & Qualifications Glossary.
If this was a liquid 1in4 it would very simply meet the exemption for "in-plant piping" described in 49
CFR § 195.1(b)(8) for, 'Transportation of hazardous liquid or carbon dioxide through onshore production
(including flow lines), efining, or manufacturing facilities or storage or in-plant piping systems
associated with such fcilities." In 59 FR 33389 arid PHMSA Interpretation #PI-98-006 (Nov 18, 1998),
PHMSA appears to fu9ther clarify that if the grounds of a plant are separated by a single public
thoroughfare, transfer piping that crosses the thoroughfare from one part of the plant to the other is on
plant grounds for purposes of the in-plant piping definition. Although there is no specific regulatory in-

<<<PAGE 4>>>

Mr. John A. Gale
PHMSA, U.S. Dc
March 31, 2017
Page 2
of Transportation
plant piping exemption or gas lines, PHMSA' s Interpretation #PI-09-0020 (Aug 11, 2010) appears to
address the issue of regilation of "in-plant" gas pipelines, in stating that, "Historically, PHMSA has
elected not to apply the Federal gas pipeline safety regulations to such lines if they are associated with the
plant, meaning they are perated by plant personnel, run between plant buildings, and are less than one
mile in length." (Pleaselsee Attachment 2 for these references.)
In summary, Dow belie'yes that this line should not be regulated under the Pipeline Safety regulations,
since it is not a gathering line, a transmission line, or a distribution line. The particular facts in this
situation also may help 1HMSA to reach the decision that this particular pipeline should not be so
regulated. Dow also repectfully requests PHMSA' s interpretation and position on the applicability of the
in-plant piping exemptidrn to this gas line and in general for applying to other Dow situations.
If you would like to disquss, or need any additional information for your consideration, please do not
hesitate to contact me a (979) 238-0361.
Sincerely,
ershct
Sr. Regulatory Complia ce Specialist
The Dow Chemical Cor!ipany
2301 N. Brazosport BlvL, B-101
Freeport, Texas 7754 1-257
(979) 238-0361
Enclosures: Attachmeit 1- Map of Seadrift Operations and Pipeline
Attachmel* 2- 59 FR 33389;
PHMSA Interpretation #PI-98-006 (Nov 18, 1998);
PHMSA's Interpretation #PI-09-0020 (Aug 11, 2010)
cc: Stephanie Weidman PHMSA Program Manager, Railroad Conmuission of Texas, Austin

<<<PAGE 5>>>

Attachment 1
Map of Seadrift Operations and Pipeline

<<<PAGE 6>>>

The Dow Chemical Company, Seadrift Operations Manufacturing Facility, Seadrift, Texas
gle Earth mKes1
1 A
Zoomed-view
Pipeline leaves Dow fence-line, crosses one
public thoroughfare (HVVY TX-i 85), and re-
enters Dow fence-line.
The railroad tracks that this line crosses are
on Dow property and are operated by Dow.

<<<PAGE 7>>>

Attachment 2
59 FR 33389;
PHMSA Interpretation #PI-98-006 (Nov 18, 1998);
PHMSA's Interpretation #PI-09-0020 (Aug 11, 2010)

<<<PAGE 8>>>

3388 Federal Register I Vol. 59, No.123 / Tuesday, June 28, 1994/ Rules and Regulations
DEPARTMENT OF TRANSPORTATION
Research and Special Programs
Administration
49 CFR Part 195
(Docket P5-127; Amdt. 195-52)
R1N2137-AC27
Regulatory Review: Hazardous Liquid
and Carbon Dioxide Pipeline Safety
Standards
AGENCY: Research and Special Programs
Administration (RSPA), DOT.
ACTION: Final rule.
SUMMARY: This rulemaking amends
miscellaneous hazardous liquid and
carbon dioxide pipeline safety standards
to provide clarity, eliminate
unnecessary or overly burdensome
requirements, and foster economic
growth. The changes result from the
regulatory review RSPA carried out in
response to the President's directive of
January 28, 1992, on reducing the
burden of government regulation. The
changes reduce costs in the liquid
pipeline industry without
compromising safety.
EFFECTIVE DATE This regulation is
effective July 28, 1994. The
incorporation by reference of certain
publications listed in the regulations is
approved by the Director of the Federal
Register as of July 28, 1994.
FOR FURThER INFORMATION CONTACT: J.
Willock, (202) 366-2392, regarding the
subject matter of this final rulemaking,
or the Dockets Unit, (202) 366-5046,
regarding copies of this final rtilemaking
or other material that is referenced
heiein.
SUPPLEMENTARY INFORMATION:
Background
In a January 28, 1992, memorandum,
the President wrote to Department and
agency heads about the need to reduce
the burden imposed by government
regulation. The President was
concerned that agencies were not doing
enough to review and revise existing
regulations to eliminate unnecessary
and overly burdensome requirements.
The President recognized that
regulations that donot keep pace with
new technologies and innovations
impose needless costs and impede
economic growth.
In response to the President's
memorandum, DOT published a notice
requesting public comment on the
Department's regulatoryprograms (57
FR 4745; Feb. 7, 1992). Commenters
were asked to identify regulations that
substantially impede economic growth,
may no longerbe necessary, are
unnecessarily burdensome, impose
needless costs or red tape, or overlap or
conflict with. other DOT or federal¯
regulations. The deadline for submitting
comments was March 2, 1992.
RSPA received comments from six
organizations about the pipeline safety
regulations in part 195. Comments were
from three regulated pipeline
companies, a pipeline trade association,
a state pipeline safety agency, and a
federal agency. RSPA considered all
comments in its review of the
regulations, and these comments are
available in the docket. Some comments
will be considered in future
rulemakings. Additionally, RSPA has
published a separate rulemaking
"Update of Standards Incorporated by
Reference" (58 FR 14519; March 18,
1993) which updates the editions of the
industry standards that are incorporated
in part 195.
On November 27, 1992, RSPA
published a Notice of Proposed
Rulemaking; NPRM, (57 FR 56304)
proposing 18 changes to the regulations
based on the comments received from
the public and asked for further
comments regarding the proposed
changes. RSPA received comments from
21 organizations: 15 pipeline
companies, 3 pipeline trade
associations, 2 environmental
organizations, and 1 county
government. RSPA considered all
comments in preparation of the final
rulemaking and the comments are
available in the Docket.-
Advisory Committee
The Technical Hazardous Liquid
Pipeline Safety Standards Committee
(THLPSSC), consisting of 15 members,
was established by statute to consider
the feasibility, reasonableness, and
practicability of proposed pipeline
regulations, RSPA implemented the
committee balloting process by mail.
After initial balloting, the process
allowed each member to review the
ballots, including comments, of all other
members, and to change his or her vote
or initial comment if desired. Although
some THLPSSC members did not vote
on every proposed change, a tally of the
second ballots showed that a large
majority of THLPSSC members found
all -the proposed chan8es technically
feasible, reasonable, and practicable.
Nonetheless, in developing the final
regulations, RSPA considered all final
THLPSSC votes and comments,
including minority positions. The
following discussion explains how
RSPA treated THLPSSC positions and
public comments on the proposed
amendments in developing the final
rule...
Changes to Part 195 Safety Standards
The following discussion explains the
changes to various standards in part
195:
Section 195.1 Applicability.
Offshore production. Part 15 does
not apply to pipelines used in offshore
production, whether on the Outer
Continental Shelf or in state offshore
waters. However, this exception is
clearly statedin part 195 only for
production on the Outer Continental
Shelf ( 195.1(b)(5)). To clarify that all
offshore pipelines used in production
are outside part 195, RSPA proposed to
delete from § 195.1(b)(5) the phrase "on
the Outer Continental Shelf'.
The 10 THLPSSC members who voted
on the proposed amendment to
§ 195.1(b)(5) all approved the
amendment.
In addition, RSPA received comments
from three operators and two pipeline-
related associations in support of the
amendment and no adverse comments.
Therefore, § 195.1(b)(5) is amended as
proposed in the NPRM.
¯ We also requested comments on
'.whether there is a gap in the regulation
of production lines in state offshore
waters. Only one commenter responded.
This commenter opined that existing
state and federal programs adequately
regulate production lines in state
waters. In Louisiana, the Departments of
Natural Resources and Environmental
Quality were said to have
comprehensive regulations on facility
installation, operation, integrity, and
removal, and sufficient authority to
address any "gap" that is identified.
Since the other states with production
lines in state waters have similar
regulations, RSPA does not believe there
is a gap in the regulation of production
lines in state waters.
In-plant piping. Part 195 does not
apply to pipeline transportation through
onshore production, refining, or
manufacturing facilities, or storage or
in-plant piping systems associated with
such facilities ( 195.1(b)(6)). Because
the physical distinction between a
regulated pipeline serving a plant and
unregulated in-plant piping is unclear,
RSPA proposed to add a definition of
"in-plant piping system" to § 195.2. The
definition proposed was: TiiIant
piping system means piping that is
located on the grounds of a plant and
used to transfer hazardous liquid or
carbon dioxide between plant facilities
or between plant facilities and a
pipeline, not including any device and
associated piping that are necessary to

<<<PAGE 9>>>

Federal Register./ Vol. 59, No. 123 I Tuesday, June 28, 1994 I Rules and Regulations control pressure in the pipeline." The
NPRM explained that we would
consider in-plant piping to extend to the
plant boundary in the absence of a
necessary pressure control device on
plant grounds.
All ten THLPSSC members who voted
on this proposal supported it. However,
four members believed that because the
NPRM primarily concerned pipeline
transportation rather than production,
refining, or manufacturing plants, it did
not give plant owners adequate notice
that the proposed definition could affect
plant piping. These members wanted
RSPA to publish a separate NPRM on
the subject of in-plant pi,ping.
RSPA does not agree that another
NPRM is needed. The subject of in-plant
piping and the associated issues were
clearly discussed in the published
NPRM. Also, all interested persons.
including plant owners as well as
pipeline operators, were given an
opportunity to comment on the subject
of in-plant piping.
¯ RSPA received comments on the
proposed definition from seven
operators, two pipeline-related
associations, and one state agency. Two
operators and one association fully
supported the proposal.
One operator and a pipeline-related
association thought plant owners were
not adequately notified of the proposed
rule, and that RSPA should treat the
subject in a separate NPRM. Our
position on this issue is given supra in
response to a similar criticism by four
THLPSSC members.
Another operator was concerned that
the proposed definition would cause
operator-owned components, such as
pipe, meters, instruments, and
manifolds, that are located on plant
grounds downstream from the operator's
pressure control device to fall outside
part 195. The operator was worried that
other agencies would .rgulate these
components as non-transportation
related facilities. We are not -persuaded,
however, that the potential for such
regulation i sufficient reason to exclude
the components from the definition of
in. p1ant piping system. The aim of the
proposed definition was to distinguish
unregulated piping, not to limit the
jurisdiction of other government
agencies.-
-
¯ In contrast, an operator of gathering
and processing facilities was concerned
that part 195 would apply to plant
piping that ties between anynecessary
- pressure' control device and the
connection to a pipeline. This
commenter apparently did not realize-
that such piping is subject to part 195.
RSPA has applied part 195 to such
-piping because. it is subject to pressure
33389
which is controlled by idevice
operator and association argued that the
operators must have to meet
off-grounds segments pose minimum
§ 195.406(b). However, this application
risk to public safety and the
has had little effect On plant owners,
¯ environment, because the, segments
because we hold the pipeline operator,
generally are located'in industrial areas,
not the plant owner, responsible for
roadways, or railways. The association
compliance.-
further argued that a plant has the same
An-operator commenting-on the plant
operational control, including response
device exclusion in the proposed
capability, over the off-grounds
definition advised us to change "control
segments as it does over piping on plant
pressure" to "prevent overpressure."
grounds,-
This commenter said the change would
In response to these comments, we
avoid making pipeline operators
note that § 195.1(b)(6) echoes section
responsible under part 195 for
201(3) of the Hazardous Liquid Pipeline
ponessential pressure control devices.
Safety Act of 1979 (HLPSA), (49 U.S.C.
We agree the suggested 'rewording
app. 2001(3)), which excludes certain
would better convey the intent of the
"in-plant piping systems" from
proposal. But, in the final definition, we
regulation under the HLPSA; Since
have changed "control pressure in the
'neither the HLPSA nor its legislative
pipelin&' to "control pressure in the
'history explain "in-plant piping," we
pipeline under § 195.406(b)" to convey
adopt an ordinary, reasonable
the intent even more precisely.
understanding of the term. Therefore,
The state agency commented that if
we do notaccept the interpretation that
piping on plant grounds does not
the term includes piping that crosses the
include a device necessary-to control'
property of others outside plant
pipeline pressure, the jurisdiction of
grounds. However, many plants are
part 195 over the pipeline should not
separated by a public thoroughfare, and
end at the plant boundary. Instead, the
plant transfer'piping crosses the-
state agency recommended ending
thoroughfare. A single public
jurisdiction at a component inside the
thoroughfare would include any road,
plant, such as a flange, where the
from a country lane to an interstate
pipeline can be isolated for purposes of
highway, but it does not include a
testing. Although operators may use-
railroad. Because transfer piping that
such components, part 195 does not
crosses such thoroughfares is
require that they be on the pipeline.
comparable in most respects to other in-
Also, we believe the plant boundary is
plant piping, RSPA considers the in-
a mOre convenient demarcation of in-
plant piping exception to include the
plant piping than -an unspecific inside-
thoroughfare crossings. The
the-plant component. Thus, the state
thoroughfare exception does not apply
agency's comment is not incorporated in
to inter-facility lines or delivery lines,
the final definition.
because these lines are distinct from in-
The state agency, an operator, and a
,'plant piping. We did not intend the
pipeline-related association were
proposed-definition of "in-plant piping
concerned that because segments of
systems" to expand our present
transfer piping located off plant grounds
- interpretation of the term. So the final
were not included in the proposed
definition does not incorporate any of
definition, a large number of short
the comments concerning piping-
pipelines would come under part 195.-
'located off plant grounds other than for
RSPA recognizes that production,
thoroughfare crossings.
refining, or manufacturing plants often
However the proposed definition's
install transfer piping off plant grounds.
first use of the term "pipeline" is
A plant may use this piping to transfer
changed to "pipeline or other mode of
hazardous liquids between its different
transportation." This change is needed.
facilities located on the same grounds;
to include, within the definition, piping
between its different facilities located
on plant grounds that transfer hazardous
on separate grounds'(usually separated
liquid or carbon dioxide between plant
by a roadway,'railway, waterway, or'
facilities and modes of transportation-
- industrial area); between its facilities
and a transportation system, such as a
other than pipeline. Terminalfacilities. Part 195 does not
railroad or pipeline; or between its
apply to the transportation of hazardous
facilities and the facilities of another
liquid or carbon dioxide by vessel,'
-
plant or industrial consumer. The three-
- aircraft, tank truck, tank car, or other
commenters thought the Off-grounds',
vehicle, or by terminal facilities used
segments should qualify as in-plant-
exclusively to transfer hazardpus liquid
piping if they connect facilities of the-
or carbon dioxide between such modes
same plant. The assOciatiOn 'also wanted
of transportation ( 195i(b)(7)). RSPA
to include under the definition' off-
proposed to amend § 195.1(b)(7) to
grounds segments that conned facilities,
clarify that terminal facilities lOcated off
of different plants. In addition, the
terminal grounds are subject to part 195,

<<<PAGE 10>>>

33390 Fuderal Rester / Vol. 59, No. 123, I Tuesday, June 28, 1994 I Rulas and Regulations
and to distinguish unregulated terminal
facilities from a regulated pipeline
entering or leaving the terminal. As with
the proposed in-plant piping definition,
any device and associated piping on
terminal grounds necalsary to-control
pressure in a regulated pipeline would
not be excepted from part 195.
The THLPSSC voted to approve this
proposal, but four members believed the
NPRM did not, give terminal owners
adequate notice that the proposed¯
amendment could affect their piping.
These members wanted RSPA to
publish a separate NPRM on the subject.
For the reasons stated supra in response
to a similar argument by these THLPSSC
members concerning implant piping,
RSPA does not agree that another NPRM
is needed.
Five oper tors and two pipeline-
related associations commented on the
propos&l amendment to § 195.i(b)(7).
Of'these commenters, two operators and
one association agreed with the
proposal.
A few commenters eçpressed the
same concerns about the proposed
amendment to §.195.1(b)(7) as they did,
about the proposed in-plant piping
definition. These concerns were that the
NPRM did not adequately notify plant
(terminal) owners of the proposed rule,
and that some operator-owned
components located on plant (terminal)
grounds would fall outside part 195.
Our response to these concerns is the
same as stated supra regarding in-plant
piping. In regard to transfer lines located
outside terminal grounds at ports, an
operator and a pipeline-related
association pointed out that the U.S.
Coast Guard regulates transfers between
terminal storage and dock facilities..
These commenters suggested that RSPA
and Coast Guard develop a
memorandum of wuierstanding to limit
Coast Guard's regulatipns to dock
facilities.
We recognize that Coast Guard and
RSPA jurisdictions overlap in port
areas, but the two agencies have
different responsibilities. Also, the
overlap does not automatically result in
regulatory conflicts, and the
commenters did not mention any.
Nonetheless, though we have not
changed the final rule as a result of this
comment, in enforcing part 195 at port
areas, RSPA will act appropriately to
resolve any unnecessary regulatory
burdens.
Carbon dioxide injection system.
Section 195.1(b)(8) provides that part
195 does not apply to "lt]ransportation'
of carbon dioxide downstream from a
point in the vicinity of the well site at
which carbon dioxide is delivered to a
production facihity" RSPA proposed to¯
amend this section to clarify that the
exception covers pipelines used in the-
injection of carbon dioxidefor oil
recovery operations.
The THLPSSC approved the proposed
amendment (10 voted in favor and 5 did
not vote), and w.e received no adverse
comments from the-public. The-
proposed amendment to § 195.1(b)(8) is,
therefore, adopted as final.
Section 195.2 Definitions.
The proposed revision of the
definition of "Secretary" is -not adopted
in this rulemaking. Instead, it is being
handled in an omnibus rulemaking
covering all regulations involving
pipeline safety.
The definition of "In-plant piping
system" is discussed above in § 195.1
Applicability.-
- Two commenters objected to the
proposed definition for petroleum
products because of its use of the terms
"flammable", "toxic", and "corrosive"
which are not defined-under part 195.
The commenters stated that absent
specific definitions for these terms, their
applicability could be unclear.
RSPA agrees with the comments
about the lack of clarity in the proposed
definition for petroleum products. So,
the final rule for this section includes
new definitions for "flammable",
"toxic", and "corrosive" that come from
the definitions contained in 49 CFR part
173 for Transportation and Packaging of
Hazardous Materials for the terms
"flammable liquid', "poisonous-
material", and "corrosivematerial",
respectively. RSPA has adopted the
definition of "poisonous material" for
"toxic" because it considers the terms
synonymous.-
Sections 1952, i95.W6,.195.112,
195.212 and 195.413
, (Nominal
Outside Diameter of the Pipe in Inches)
RSPA proposed to standardize the
dimensioning of pipe size throughout
part 195 (Changes are made to § 195.2,
195.106(b), 195.106(c), 195.112(c),-
195.212(b)(3)(ii) and 195.413(a)). All 10
THLPSSC members who voted were in
favor of the proposal and no commenter
objected thereto. Accordingly, the
proposed amendment is adopted as
final.-
Section 195.3 Matter incorporated by
reference.-
Section 195.3 sets out the general
requirements for the incorporation in
the regulations of industry standards for
the design, construction and operation
of hazardous liquid and carbon dioxide
pipelines. Paragraph 195.3(a) states that
incorporation of a -document by
reference has -the- same force' as if the
document were copiOdin the--
-- -
-
regulations. Some operatorshave-
misinterpreted this-section to mean that
they must- comply with all of the terms
- contained in a referenced 'document.-
- Acäordingly, RSPA hereby revises
§ 195.3(a) tO clarify that an entire
document is not incorporated when the
document is incorporated by reference;
rather, only those portions specifically
referenced in the regulations are
incorporated.
The rule is being revised to conform
to a recent update of references in
another rulemaking (Update of
Standards Incorporated by Reference (58
FR 14519; March 18, 1993)). Also,
references to ASME/ANSI Codes B31 :8
and B31.G are beingadded. The 10-
THLPSSC members who voted and 7
commenters favored the revision.
Section 195.5 Conversion to service.-
subject to this part.-
-
Section' 195.5 regulates the conversion
of steel pipelines to hazardous liquid or'
carbon -dioxide service that is subject to
part 195. Under § 195 .5(a)(4), a
converted pipeline must be
hydrostatically tested to substantiate the
maximum operatingpressure (MOP)
permitted by § 195.406.1
To substantiate the MOP of a
converted pipeline, an operator must
know the pipe design pressure (see
-
current § 195.406(a)(1)). Consequently.
if pipe design pressure.is unknown, a
steel pipeline may not be con earted
under § 195.5. Although the design.-
pressure of components is an MOP
factor under § 195.406(a)(2), pipeline
components hre normally designed to be
- as strong or stronger than attached pipe.
Thus, pipe design is the critical factor
in substantiating MOP under
§ 195.5(a)(4), and lack of knowledge of
component design pressure is not a
significant safety concern.
RSPA proposed to amend § '195.5 to
permit conversion using an approach
found in section 845.214 and Appendix
N of ASME B31.8 for gas pipelines
whose design pressure is imknown.
Under this proposal, operators would
pressim test the pipeline under
Appendix N until pipe yield occurs.'
Instead of design pressure, this yield
test pressure would he used to-compute
MOP by applying certain reduction
factors to 80 percent of the first pressure
that produces pipe yield.
All THLPSSC members who voted on
the proposed amendment to § 195.5-
I Section 195.51a)(4) actually uses the term
"maximum allowable operating pressure," but for
consistency with 195.406, this term is changed
below to MOP byremoving the word "allowable."

<<<PAGE 11>>>

Federal Register / Vol. 59, No., 123 / Tuesday, June 28, 1994 / Rules and Regulations supported it in concept. However, two
members thought the wording of
Appendix N should be copied directly
into part 195 to avoid referencing a gas
pipeline code in liquid pipeline
regulations. We believe the principles of
Appendix N apply equally to gas and
liquid pipelines. And since the B31.8
Code is widely used, operators of
hazardous liquid or carbon dioxide
pipelines will not find it difficult to
obtain and appjy Appendix N.
RSPA received five comments on the
proposed amendment to § 195.5. Two
operators and a pipeline-related
association agreed with the proposed
amendment.
One operator suggested that if
pipelines operating at less than 20
percent of specified minimum yield
strength (SMYS) are subject to § 195.5,
RSPA- should allow operators up to 10
yearsto meet the testing requirements.
At present, none of the standards in part
195, including § 195.5, applies to
pipehnes operating at less than 20
percent of SMYS (see §.195.1(b)(3)).
However, this commenter may have had
in mind §206.of the Pipeline Safety Act
of 1992 (Pub. L. 102-508), which
provides that exceptions to regulations
under the Hazardous Liquid Pipeline
Safety Act of 1979 (49 U.S.C. app. 2001
et seq.), such as part 195, may not be
based solely on low internal stress.
Because of this statutory mandate, RSPA
has proposed to apply-part 195 to
certain low-stress hazardous liquid
pipelines (Docket PS-117; 58 FR 12213;
March 3, 1993). Still, that proposal
would not require any existing low-
stress hazardous liquid pipeline to he
tested under § 195.5, because such
pipelines would not be converted
pipelines. Of course, if part 195
becomes applicable to low stress
pipelines, any pipeline converted to low
stress hazardous liquid service subject
to part 195 would have to be tested
under § 195.5. But, since testing is the
backbone of the conversion process,
RSPA does not believe § 195.5 should be
amended to extend the time for, testing
to 10 years.-
A state agency was concerned that if
test pressure must be measured at the
high elevation point of test segments,
the test could stress the low point of the
segment beyond yield. However, the
Appendix N test method should not
result in overstress at the tow elevation,
because the method does not require
increases in test pressure after the first
yield occurs in the test segment.
In a separate rulemaking proceeding
(Docket No. PS-124; 57 FR 39572;
August 31, 1992), RSPA proposed to
allow the use of the Appendix N
method in converting pipelines to gas
service under 49 GFR 192.14. This gas
pipeline conversion standard is similar
to § 195.5. Comments to that notice
argued that pressure testing to yield is
unnecessary to qualify certain pipelines
that operate at low stress (generally
pipelines 12~ inches or less in nominal
outside diameter operating at pressures
of 200 psig or 'less). RSPA believes these
comments are-also relevant to hazardous
liquid pipelines All other factors being
equal, hazardous liquid pipelines
operating at low internal stress present
less risk of failure from 'time-dependent
defects than higher stress hazardàus
liquid pipelines. Because of the lower
risk, RSPA has modified the final rule
to provide that pipelines 12~ inches or
less in nominal outside diameter to be
operated at a pressure of 200 psig or less
may be converted without testing to
yield. The MOP of such pipelines may
be determined under § 195.406 by'using
200 psig as pipe design pressure.
The proposed rule has been redrafted
to improve clarity, to better relate
conversion to design pressure and MOP
under § 195.406, and to include the
changes discussed supra. In the final
rule, the proposed amendment to
§ 195.5(a)(1) is revised and published as
an amendment to § 195.406(a)(1). This
latter section deals. specifically with
pipe design pressure and MOP. 'As set
forth Infra, revised § 195.406(a)(1)
provides that- when pipe design pressure
is unknown for steel pipelines being
converted, a reduced value of first yield
hydrostatic test pressure may be usOd as
design pressure to compute MOP. If the
pipeline to be converted is 12/4 inches
or less in nominal outside diameter and
is not yield tested, 200 psig may be used
as design pressure.
Section 195.8 Transportation of
hazardous liquid or carbon dioxide in
pipelines constructed with other than
steel pipe.
The proposal to replace the word
"he" with "the Secretary" to remove
any implication'of gender is not adopted
in this rulemaking. Instead, this
proposal will be handled in an omnibus
rulemaking to make minor clarifications
and error corrections covering all the
pipeline safety regulations.
Section 195.50. Reporting accidents
and § 195.52 Telephonic notice of
certain accidents;
-
Sections 195.50(1) and 195.52(a)(3)-
-
require operators to prepare reports and-
give telephonic notice of accidents,-
respectively, when the estimated
property damage due to an accident
-
exceeds $5,000. RSPA discovered from
its regulatory review and previous
enforcement cases that a significant
33391
amount of confusion exists among
pipeline operators as to which Cost
estimates must be included in
calculating the "estimated property
damage to the property of the operator
-or others* * " Frequently, when
reporting accidents, pipeline operators
fail to include as "property damage" the
fair market value of the product released
or those costs associated with cIeanup
and recovery efforts. RSPA believes
-
these costs should be included when
reporting accidents.
Because the $5,000 reporting
requirement requires the reporting of
minor accidents, RSPA proposed
amending § 195.50(f) and 195.52(a)(3)
to increase the reporting threshold to
$50,000, the same level as required in
49 CFR part 192 and to include as
property damage the value of the
product released and the costs -
associated with clean-up end recovery
efforts. The THLPSSC voted 10 toO in
favor of the change (5 members did not
vote). Two of those favoring the
proposed changes recommended that
RSPA modify the final rule to limit
property damage to fair market value of
the lost product and initial clean-up and
product recovery costs. One member
said that clean-up and recovery costs
should not be included in total property
damage.-
Three commenters disagreed with the
proposed changes and recommended
that the rule be withdrawn. One
complaint was that the statistical base
would be discontinuous because, in the
future, RSPA would not receive
information on accidents costing
between $5,000 and $50,000. Another
complaint was that the change could
affect the developmeyit of environmental
protection requirements. RSPA
understands that a change in reporting
levels will cause a slight skewing due to
truncation of the data, but believes
requiring operators to report accidents
based solely on the $5,000 property
damage criterion is unnecessary arid
burdensome. Significant accidents will
still bereported because the other
criteria (especially those that are
-
environmentally related) requiring
reports will be unchanged: (1) Explosion
or fire, (2) loss of 50 barrels of liquid.
(3) escape of five barrels a day of highly
volatile liquids, (4) a death, (5) bodily
harm, or (6) resulted in the pollution of
any stream. Because these requirements
remain unchanged, those operators with
more frequent small releases will still be
identified. As to a skewing of the data.
those organizations that keep track of
such statistical data should be able to
make adjustments to account for such
changes. Also, as explained in the
NPRM, this change will make the liquid

<<<PAGE 12>>>

33392 Federal Register / Vol. 59, No. 123 / Tuesday, June 28, 1994 / Rules and Regulations
safety reporting requirements consistent
with the gas safety reporting
requirements which will eliminate
confusion. The rule change should have
little, if any, effect on the environment
because the same spill volume reporting
criteria remain in effect. Only the dollar
level of the reporting criterion is being
changed.
Two commenters supported the rule
changes as they were written. Five
others favored the changes, but
proposed modification of the rules to
explain more fully the meaning of
"estimated total damage" in order to
spell out the items that must be covered.
They said that "estimated total damage"
is ambiguous and confusing and subject
to interpretation. One cominenter stated
that the costs of subsurface restoration
should be excluded from property
damage because it is nearly impossible
to estimate the subsurface restoration
costs within the time allowed to report
the accident.
RSPA agrees that early estimates of
the costs to clean-up a liquid spill may
not be exact; however, the operator
should, at a later date, submit a revised
report that provides more reliable cost
figures for the clean-up.
RSPA is clarifying the issue by
amending § 195.50(f) to read: "(1)
Estimated property damage, including
cost of clean-up and recovery, value of
lost product, and damage to the
property of the operator or others, or
both, exceeding $50,000" and
§ 195.52(a)(3) to read: "(3) Caused
estimated property damage, including
cost of clean-up and recovery, value of
lost product, and damage to the
property of the operator or others. or
both, exceeding $50,000."
Section 195.106 Internal design
pressure.
Section 195.106(a) prescribes the
formula for calculating the design.
pressure of steel pipe. In addition,
§ 195.106(b) regulates the pipe yield
strength used in the design pressure
formula. When the specified minimum
yield strength (SMYS) of pipe is
unknown, § 195.106(b) requires that
yield strength be derived from tensile
tests on random samples of pipe. Based
on a comparable gas pipeline safety
standard (49 CFR 192.107(b)(2)), RSPA
proposed to amend § 195.106(b) to allow
operators to use 24,000 psi as yield
strength if pipe of unknown SMYS is
not tensile tested. Editing changes to
§ 195.106(b) were also proposed.
The 10 THLPSSC members who voted
on the proposed amendment of
§ 195.106(b) supported it (5 did not
vote). In addition, RSPA received
comments from four operators and one¯
pipeline-related association. The
(17th edition). For weld acceptability,
association and three of the operators
§ 195.228(b) now references the
agreed with the proposal. One of these
standards in Section 6 of API Standard
operators suggested further editing, part
1104.
of which RSPA has included in the final
In a notice of proposed rulemaking
rule.
involving our review of the gas pipeline
One operator was concerned that the
safety standards in 49 CFR part 192
proposed rule could unjustiflably
(Docket PS-124; 57 FR 39572; August
reduce the MOP of its pipelines. The
31, 1992), RSPA proposed to allow gas
operator said its pipelines are made of
operators to apply the API appendix in
Grade B pipe (yield strength at least
addition to section 6 criteria. Although
35,000 psi) or better. However, some
that proposal was based on a petition by
pipelines may contah pipe for which
API to incorporate the appendix by
documentation of yield strength or
reference in both parts 192 and 195, we
tensile testing does not exist. For such
overlooked the request to include such
pipe, without new tensile testing, yield
a proposal in the present rulemaking.
strength would have to be assumed to be
In the part 192 rulemaking, RSPA's
24,000 psi. The operator suggested that
gas pipeline safety advisory committee
RSPA allow operators to use appropriate
voted to support the proposed
evidence besides tensile tests to
amendment. Also, all but one of the
demonstrate the yield strength of pipe.
public comments were in favor of
In response to this comment, we note,
allowing use of the Appendix of API
first, that the proposed amendment to
Standard 11Y4.
-
§ 195.106(b) would not affect the design
The dissenting commenter was
pressure of existing pipelines unless
concerned that industry inspection
they are replaced, relocated, or
personnel may not be qualified to apply
otherwise changed (see § 195 .100).
the appendix. However, this commentër
Second, § 195.106(b) currently requires
may not have recognized that under
operators to use as yield strength either
§ 192.243(b) and (c), operators must
SMYS or a value based on tensile
ensure that nondestructive testing is
testing. So the operator's apparent
performed in accordance with written
difficulty in verifying yield strength is a
procedures by persons who have been
problem of compliance with the current
properly trained and qualified. Sections
rule. Third, the proposed nile would
195.234(b) and (c) provide similar
relax the burden of tensile testing only
requirements for nondestructive testing
when MOP does not exceed the level
of welds on hazardous liquid and
that corresponds to a yield strength of
carbon dioxide pipelines. RSPA believes
24,000 psi. When a higher MOP is
these requirements are adequate to
desired, operators must use the tensile
assure proper application of the
testing option. Finally, RSPA is not
aware of any acceptable evidence of the
appendix. The Appendix of API Standard 1104
yield strength of pipe of unknown
applies equally to girth welds in gas and
SMYS apart from appropriate tensile
liquid pipelines. This amendment is not
testing. Thus, the amendments to
mandatory, rather it provides pipeline
§ 195.106(b), as discussed above, are
operators an optional operating
adopted.
procedure. In view of the prior
opportunity for public comment on use
Section 195.204 inspection-general.
of the appendix for gas pipelines, the
The THLPSSC voted 10 to 0 in favor
favorable response by public
of the proposed change to make the
commenters and RSPA's advisory
language gender neutral and, except for
committee, and the fact that use of the
a minor correction, no objections were
appendix would not be mandatory, we
received from commenters. The'
believe that a further opportunity for
proposed change is adopted as
public comment is unnecessary to allow
corrected.
use of the appendix under § 195.228(b).
We feel this amendment is a logical
Section 195.228 Welds; standards of
outgrowth of the Notice and furthers our
acceptability.
efforts to make parts 192 and 195
One of the comments we received on
consistent wherever possible. This
proposed amendments to
amendment will not have a substantial
nondestructive testing requirements
impact on the regulated community.
under § 195.234(e) (discussed infra)
Thus, in accordance with 5 U.S.C.
concerned the standards for acceptance
553(b)(3)(B), we are amending
of weld flaws ( 195.228(b)). A pipeline-
195.228(b) to reference the appendix
related association asked us to
without further rulemaking notice.
incorporate by reference the alternative
However, should any person be
acceptance standards for girth welds
adversely affected by this decision or
that are in the Appendix to American
wish to change the final rule, that
Petroleum Institute (API) Standard 1104
person may submit a petition for

<<<PAGE 13>>>

Federal Register I Vol. 59, No. 123 / Tuesday, June 28, 1994 / Rules and Regulations reconsideration under RSPA's
Sections 195.246 Installation ofpipe
rulemaldng procedures in 49 CFR
in a ditch and 195.248 Cover over
106.35.
buried pipeline.
The final rule provides that the
Section 195.246(b) is inconsistent
appendixmay be used only for girth
with § 195.413(b)(3) for pipe in the Gulf
welds to which the appendix applies.
of Mexico and its inlets (See § 105.2
For example, as section A.1 of the
Definitions) under water less than 15
appendix states, neither welds in pump
stations nor welds used to connect
feet deep but at least 12 feet deep,
fittings and valves are covered by the
because § 195.246(b) permits the pipe to
be without cover or to be above the
appendix. Also, the appendix applies
only to girth welds between pipe of
seabed if properly protected. Such pipe
equal nominal wall thickness.
is a "hazard to navigafion" under the
definition of that teWn in § 195.2, and
Section 195.234 Welds:
must have the minimum cover required
Nondestructive testing.
by § 195.413(b)(3). In addition,
Section 195.234(e) requires that' 100
§ 195.248(a) and (b)are Inconsistent
percent of each day's girth welds
with § 195.413(b)(3) for pipe in the Gulf
installed in* * * [certain) locations
of Mexico and its inlets under water less
must be nondestructively tested 100
than 12 feet deep. Section 195.248(a)
percent unless impracticable, in which
allows pipe to be less than 12 inches
case at least 90 percent must be tested."
below the seabed (i.e., a hazard to
RSPA proposed to amend § 195.234(e)
navigation). In certain instances,
to clarify that "90 percent" pertains to
§ 195.248(b) allows pipe to be without
the number of girth welds that must be
cover or less than 12 inches below the
tested over their entire circumference.
seabed. Neither condition is allowed
In addition, § 195.234(g) requires: "At
under § 195.413(b)(3). In light of these
pipeline tie-ins 100 percent of the girth
inconsistences, RSPA proposed in the
welds must be nondestructively tested."
NPRM to amend §5195.246(b) and
RSPA proposed to clarify that this
195.248(a) and (b) to correct the
standard applies to tie-ins of
problem.
replacement sections of pipeline.
Ten THLPSSC members favored the
The THLPSSC supported the
proposed changes (5 members did not
proposed amendments, although one
vote). One of the members favoring the
member thought part 195 should define
changes said it would make more sense
the word 'impracticable." We did not
to retain the existing regulation which
adopt this recommendation because the
operators have adhered to for years. In
word is used in its ordinary dictionary
similar manner, two commenters and
sense.
one pipeline -related organization agreed
Three operators and two pipeline-
with the proposal. One cominenter and
related associations commented on the
two pipeline-related organizations
proposed amendments. Three
disagreed and suggested that references
commenters agreed with the proposal,
to a depth of 15 feet in the rule be
one suggested editing changes, and one
eliminated. RSPA proposed changes to
made a related proposal discussed supra
§5195.246(b), 195.248(a) and 195.248(b)
under the heading, "fi 195.228(b) Welds;
so these sections would conform with
standards of acceptability." Although
Public Law 101-599 (section 1, 104 Stat.
we did not adopt all the editing
3038 (1990)) which requires burial of
suggestions, these comments helped us
pipe where the subsurface is under 15
provide clarity to the final rule.
feet of water as measured from mean
In addition, one commenter thought
low water. Therefore, §5195.246(b),
the proposed amendment of § 195.234(g)
195.248(a) and 195.248(b) are adopted
was unnecessary because § 195.200
as proposed in the NPRM.
already indicates that § 195 .234(g)
applies to replacement sections.
Section 195.262 Pumping equipment.
Moreover, the cominenter thought
Section 195.262(d) regulates the
adding the proposed phrase to
location of pumping equipment. The
§ 195.234(g) would create confusion
rule prohibits the installation of
over whether § 195.234(a) through (I)
pumping equipment on property not
apply to replacement sections. While
under the operator's control. It also
these observations have theoretical
prohibits installation less than 50 feet
merit, in practice, some operators have
from the pump station boundary. RSPA
failed to recognize that "pipeline tie-
proposed to amend § 195.262(d) to
ins" include tie-ins of replacement
clarify that these two restraints on
sections. The clarifying phrase adds
location apply conjünctively not
emphasis where it is apparently needed
to assure compliance th the full
alternatively. The THLPSSC members who voted on
extent of the rule. Section 195.234(g) is,
the proposed amendment supported it
therefore, adopted as proposed.
in concept, but 5 members
33393
recommended further editing of the rule
for clarity. Although three of the five.
persons who commented on the
proposal supported it as proposed, the
other two commenters thought further
clarifying changes were needed. In view
of these comments and THLPSSC views,
we have modified the final rule based
on identical wording suggested by five
THLPSSC members and one commenter.
Section 1953O4 Testing of
components.
Section 195.304(b) excludes from
hydrostatic testing under part 195 any
component that is the only item being
replaced or added to a pipeline system
if the component or a prototype was
tested at the factory. RSPA proposed to
amend § 195.304(b) to clarify that the
excluded components do not include
pipe.
The THLPSSC fully supported the
proposed amendment. Of the six
comments from the public on the
proposal, a pipeline-related association
and two operators agreed with it, whIle
three operators suggested changes.
An operator suggested that instead of
amending § 195.304(b). we should
revise the definition of "component" to
exclude pipe. We did not adopt this
suggestion because the revision would
affect every rule in part 195 that uses
the term "component." Editing
suggested by another operator was not
adopted because it concerned matters
not addressed in the NPRM.
One operator felt pipe should be
excluded from hydrostatic testing under
§ 195.304(b) to the same extent as other
components. The operator said that.
hydrostatically testing short sections of
mill tested pipe is duplicative, costly,
and not needed for safety. Although the
NPRM did not propose to alter the
existing requirement that replacement
sections of pipe of any length must be
hydrostatically tested to part 195
standards before operation, we do not
agree with this commenter's contention.
Normal pipe mill tests are not
duplicative of part 195 tests, and are not
a proven safe alternative to part 195
requirements. However, for short
sections of replacement pipe, part 195
test requirements could be met
anywhere, including, by prior
arrangement with the operator, in the
pipe mill. So if an operator wishes to
avoid field testing of short replacement
sections of pipe, it only needs to assure
that the mill tests of those sections were
done in accordance with part 195 test
requirements.

<<<PAGE 14>>>

fl3394 Federal Register / Vol. 59, No. 123 I Tuesday, June 28, 1994 / Rules and Regulations
Section 195.406 Maximum operating
pressure.
The changes to § 195.406 are
discussed supra under § 195.5.
Section 195.412 Inspection ofrights-
of-way and crossings under navigable
waters.
Section l95.12(a) requires an
operator, at intervals not exceeding 3
weeks, but at least 26 times each.
calendar-year, to inspect the surface
conditions on or adjacent to each
pipeline right-of-way. Because some
surface condition activities that affect
the safety and operation of pipelines are
more visible from aerial patrols than
from walking or driving the right-of-
way, RSPA proposed thafthe section be
changed to clarify that anrial patrols are
an optional method of compliance. No
comments were received regarding the
change and the THLPSSC voted 10 to 0
in favor of the change (5 members did
not vote). Accordingly, the change to
§ 195.412(a) is adopted as proposed.
Section (b) requires operators, at
intervals not exceeding 5 years, to
inspect each crossing under a navigable
waterway (except offshore) to determine
the condition of the crossing. The
purpose of the inspection is to look for
any damage, unanticipated loading, or
loss of protection that could threaten the
safety of the pipeline. We stated in the
NPRM that bored crossings are usually
so deep that there is little likelihood the
pipeline could be affected by waterway-
related events, such as scouring or
anchor dragging. We proposed to add an
exception to § 195.412(b) to cover bored
crossings that are too deep to be subject
to waterway-related damage.
The THLPSSC voted 10 to 0 in favor
of the rule (5 members did not vote).
However, a state pipeline agency
suggested the existing regulation be
retained. The agency stated that a
pipeline operator cannot be 100 percent
sure a bored crossing is so deep it
cannot be affected as stated. RSPA
received four additional- comments,
three of which expressed an opinion
that the phrase "too deep to anticipate
damage from waterway conditions or
vessel traffic" is vague and
inappropriate. The other commenter
said the proposal is unduly restrictive
and should be refocused from bored
crossings to a more generic performance
standard potentially including all
crossings.
In view of the comments received,
RSPA agrees with those who opined
that "too deep to anticipate damage
from waterway conditions or vessel
traffic" is too vague. In the absence of
a recognized standard on the subject, it
is too speculative to judge when bored
crossings are buried at a sufficient depth
to be safe from damage by external-
forces. Therefore, it is in the interest of
public safety that the current rule
requiring inspection at intervals not
exceeding 5 years be retained.
Accordingly, the proposed change to
§ 195.412(b) is not adopted.
Section 195.416 External Corrosion
Control.
Section 195.416( tates that each
operator shall, at in rvals not exceeding
15 months, but at least once each
calendar year, conduct tests on each
underground facility that is under
cathodic protection to determine
whether protection is adequate. RSPA is
clarifying the rule to reduce any
misunderstanding regarding what is
meant by "underground." The word
"underground" in this paragraph has
meant any facility that is burie4 or in
contact with,the ground. This rule
clarification will not change the burden
on operators because RSPA compliance
inspectors have consistently required
any facility in contact with the ground
to be cathodically protected.
RSPA received two comments
regarding the change to § 195.416(a).
One commenter recommended that
offshore pipelines be excluded from
annual testing requirements. RSPA'
believes there is no acceptable
substitute for regular testing to
determine if corrosion protection of all
lines, both onshore and offshore, is
adequate. Accordingly, "in contact with
the ground or submerged" is added to
the rule to assure that all underwater
pipelines, both onshore and offshore,
are included in the definition. The other
corrunenter suggested requiring the
testing of "carrier pipes" in casings.
"Carrier pipes" are normally buried and
subject to the rule. The THLPSSC voted
10 to 0 in favor of the proposed change
(5 members did not vote). The revision
to § 195.416(a) is adopted as modified.
Section 195.416(1) requires that any
pipe found to be generallycorroded so
that the remaining wall thickness is less
than the minimum thickness required
by the pipe specification tolerances
must either be replaced with coated
pipe that meets the requirements of part
195 or, if the area is small, must be
repaired. However, the operator need
not replace generally corroded pipe if.
the operating pressure is reduced to.b
commensurate with the limits on
operating pressure specified in
§ 195.406, based on the actual remaining
wall thickness.
Section 195.416(g) states that if
localized corrosion pitting is found to
exist to a degree where leakage might
result, the pipe must be replaced or
repaired or the operating pressure must
be reduced commensurate with the
strength of the pipe based on the actual
remaining wall thickness in the pits.
RSPA recpgnizes that paragraphs (f)
and (g) do not provide guidance for an
operator's use in determining the
strength of the actual remaining wall
thickness of corroded steel pipe. To
provide such guidance, RSPA proposed
amending § 195.416(h) to adopt the
ASMIE Manual B3IG procedure for
determining the remaining strength of
corroded steel pipe in existing
pipelines. Application of the procedure
was proposed to be in accordance with
the limitations set out in the B31G
Manual. The rule would provide
guidance as to whether a corroded
region (not penetrating the pipe wall)
may be left in service; this option might
require a reduction in maximum
allowable operating pressure, but may
be more economical than replacement
or repair of the corroded pipe.
Ten THLPSSC members voted for the
proposal (5 members did not vote).
Comments relative to § 195.416(h)
were received from five commenters.
One commenter said the proposal to
change § 195.416(h) is inappropriate
and should be redone to be consistent
with § 192.485. Others stated that the
proposal was unnecessarily restrictive
because it did not allow the use of other
proven industry developed methods for
determining the remaining strength of
corroded pipelines. The most
noteworthy method mentioned was "A
Modified Criterion for Evaluating the
Remaining Strength of Corroded Pipe
(with RSTRENG disk)" developed by
Battelle under the Pipeline Research
Committee of the American Gas
Association (AGA). (Project PR 3-805,
December 1989, AGA catalog No.
L51609). Project PR 3-805 was
undertaken to devise a modified
criterion that, while still assuring
pipeline integrity, would eliminate as
much as possible the excessive
specifications embodied in the ASME
B3IG manual. The AGA modied
criterion, using a complex analysis
approach, can be carried out by means
of a PC-based program called RSTRENG.
The modified criterion can a1sobe
applied via tables or curves or a long-
hand equation if a simplified analysis is
preferred. The addition of the modified criterion
to the rule does not compromise safety
because it merely accepts an established
pipeline industry guideline, and does
not impose new requirements on the
operators. Accord!hgly, RSPA is
amending § 195.416(h) to include the
AGA/Battelle-A Modified Criterion for

<<<PAGE 15>>>

Federal Register / Vol. 59, No. 123 / Tuesday, June 28, 1994 / Rules and Regulations
33395
Evaluating the Remaining Strength of
RSTRENG).
Corroded Pipe (with the computer disk
the original rulemaking processes.
covered by OMB Control Numbers
Currently, regulations in part 195 are
the injection of carbon dioxide for oil
(i) The inlet of a compressor used in
• Rulemaking Analyses
2137-0047 (approved through May 31,
recovery operations, or the point where
Impact Assessment
1994), 2137-0578 (approved through
injection system, whichever is farther
recycled carbon dioxide enters the
signiticant regulatory action under
This final rule is not considered a
(approved through May 31, 1994). There
October 31, 1994) and 2137-0583
upstream; or
and, therefore, was not subject to review
section 3(f) of Executive Order 12866
requirements in this final rule.
are no new information collection
pipeline in the production field that
(ii) The connection of the first branch
wells or to headers or manifolds from
transports carbon dioxide to injection
by the Office of Management and
List of Subjects in 49 CFR Part 195
significant under the regulatory policies
Budget. The rule is not considered
Ammonia, Carbon dioxide;
which pipelines branch to injection
"Transportation (44 FR 11034).
and procedures of the Department of
Incorporation by reference, Petroleum,
*
wells.
Pipeline safety, Reporting and
*
*
prepared and is available in the docket.
A Regulatory Evaluation has been
recordkeeping requirements.
republished, definitions for Corrosive
3. In § 195.2, the introductory text is
RSPA is amending 49 CFR part 195 as
In consideration of the foregoing.
product, Flammable product, In-plant
existing rules would result in an
RSPA estimates the proposed changes to
product, and Toxic product are added in
piping system, Petroleum, Petroleum
for the hazardous liquid pipeline
estimated savings of $1,534,000 per year.
PART 195- (AMENDED]
alphabetical order to read as follows:
industry at no cost to the industry, and
continues to read as follows:
1. The authority citation for part 195
§ 195.2 Definitions.
discussed above, these savings would
with no adverse effect on safety. As
As used in this part-
come largely from the use of new
and 49 CFR 1.53.
Authority: 49 app. U.S.C. 2002 and 2015;
material" as defined by § 173.136 Class
Corrosive product means "corrosive
technology, greater flexibility in
constructing and operating pipelines,
paragraph (b) is republished, paragraph
2. In § 195.1, the introductory text of
8-Definitions of this chapter.
and the elimination of unnecessary
(b)(5) is revised, in paragraph (b)(6) a
'in" and "plant", and paragraphs (b)(7)
hyphen is added between the words
"flammable liquid" as defined by
Flammable product means
RSPA has analyzed the proposed
and (b) 8) are revised to read as follows:
chapter.
§ 173.120 Class 3-Definitions of this
Order 12612 (52 FR 41685; October 30,
rules under the criteria of Executive
§ 195.1 Applicability.
substantial effects on the states, on the
1987). The regulations have no
*
(b) This part does not apply to
that is located on the grounds of a plant
In-plant piping system means piping
current federal-state relationship, or on
or carbon dioxide in offshore pipelines
(5) Transportation of hazardous liquid
and used to transfer hazardous liquid or
responsibilities among the various
the current distribution of power and
carbon dioxide between plant facilities
outlet flange of each facility where
which are located upstream from the
or between plant facilities and a
levels of government. Thus, preparation
transportation, not including any device
pipeline or other mode of
of a federalism assessment is not
warranted.
hydrocarbons or carbon dioxide are
produced or where produced
to control pressure in the pipeline under
and associated piping that are necessary
Regulatory Flexibility Act
hydrocarbons or carbon dioxide are first
entities are those with less than
RSPA criteria for small companies or
processed, whichever facility is farther
separated, dehydrated, or otherwise
§ 195.406(b).
$1,000,000 in revenues and are
downstream;
condensate, natural gasoline, natural gas
Petroleum means crude oil,
Few of the companies subject to this
independently owned and operated.
(7) Transportation of hazardous liquid
liquids, and liquefied petroleum gas.
Accordingly, based on the facts
rulemaking meet these criteria.
or carbon dioxide-
toxic, or corrosive products obtained
Petroleum product means flammable,
available concerning the impact of this
(i) By vessel, aircraft, tank truck, tank
the Regulatory Flexibility Act that this
proposal, I certify under Section 605 oi
car, or other non-pipeline mode of
from distilling and processing of crude
oil, unfinished oils, natural gas liquids,
economic impact on a substantial
proposal would not have a significant.
grounds of a materials transportation
(ii) Through facilities located on the
blend stocks and other miscellaneous
hydrocarbon compounds.
applies to intrastate and interstate
number of small entities. This rule
terminal that are used exclusively to
transfer hazardous liquid or carbon
material'
Toxic product means "poisonous
pipeline facilities used in the
transportation or between a non-
dioxide between non-pipeline modes of
6, Division 6.1-Definitions of this
as defined by § 173.132 Class
transportation of hazardous liquids or
carbon dioxide.
including any device and associated
pipeline mode and a pipeline, not
chapter.
piping that are necessary to control
§§ 195.2, 195.112, 195.212, 195.413
Paperwork Reduction Act
§ 195.406 b; and
pressure in the pipeline under
[Amended]
information collection requirements for
The documentation for the
4. In the list below, for each section
downstream from the following point,
(8) Transportation of carbon dioxide
indicated in the left column, the phrase
Management and Budget (OMB) during
part 195 was submitted to the Office of
indicated in the middle column is
as applicable:
removed and the phrase indicated in the
right column is added:

<<<PAGE 16>>>

33396
Federal Register / Vol. 59, No. 123 / Tuesday, June 28, 1994 / Rules and Regulations
Section
Remove
Add
195.2, Gathering line
3 inches or less in nominal diameter
219.1 mm (8% in) or less nominal outside di-
195.112 (c)
An outside diameter of 4 inches or more …......
A nominal outside diameter of 114.3 mm (4½
ameter:
195.212(b)(3)(ii)
The pipe is 12 inches or less in outside diam-
The pipe is 323.8 mm (12¾ in) or less nomi-
in) or more.
195.413(a)
Except for gathering lines of 4-inch nominal
eter.
Except for gathering lines of 114.3 mm (4½
nal outside diameter.
diameter or smaller.
in) nominal outside diameter or smaller.
to read as follows:
-5. In § 195.3, paragraph (a) is revised
Determining the Remaining Strength of
(iv) ASME/ANSI B31G, "Manual for
10. Section 195.50(f) is revised to read •
Corroded Pipelines" (1991)
as follows:
§ 195.3 Matter Incorporated by reference.
incorporated by reference in this part is
(a) Any document or portion thereof
8. In $ 195.3, paragraphs (c)(1)
$ 195.50 Reporting accidents.
included in this part as though it were
through (c)(4) are redesignated as
(f) Estimated property damage,
printed in full. When only a portion of
paragraph (c)(1) is added to read as
paragraphs (c)(2) through (c)(5) and
• including cost of clean-up and récovery
incorporates only that referenced
a document is referenced, then this part
follows:
property of the operator or others, o
value of lost product, and damage to the
• portion of the document and the
§ 195.3 Matter incorporated by reference.
both, exceeding $50,000
Applicable editions are listed in
remainder is not incorporated.
read as follows:
11. Section 195.52(a)(3) is revised to
(1) American Gas Association (AGA):
(c) * *
parentheses following the title of the
paragraph (c) of this section in.
AGA Pipeline Research Committee,
§ 195.52 Telephonic notice of certain
accidents.
listed in previous editions of this
referenced material. Earlier editions
Criterion for Evaluating the Remaining
Project PR-3-805, "A Modified
(3) Caused estimated property
(a)**
section may be used for components
1989). The RSTRENG program may be
Strength of Corroded Pipe" (December
manufactured, designed, or installed in
damage, including cost of cleanup and
accordance with those earlier editions at
used for calculating remaining strength.
recovery, value of lost product, and
refer to the appropriate previous edition
the time they were listed. The user must
.*
damage to the property of the operator
9. Section 195.5 is amended by
*
or others, or both, exceeding $50,000;
editions.
of 49 CFR for a listing of the earlier
read as follows:
revising paragraphs (a)(1) and (a)(4) to
read as follows:
12. Section 195.106(b) is revised to
*
through (b)(5) are redesignated as
6. In § 195.3, paragraphs (b)(1)
this part.
§ 195.5 Conversion to service subject to
(a) * * *
$ 195.106 Internal design pressure.
paragraphs (b)(2) through (b)(6) and
(1) The design, construction,
(b) The yield strength to be used in
follows:
paragraph (b)(1) is added to read as
operation, and maintenance history of
determining the internal design pressure
the pipeline must be reviewed and,
under paragraph (a) of this section is the
*
§ 195.3 Matter incorporated by reference.
where sufficient historical records are
specified minimum yield strength. If the
not available, appropriate tests must be
specified minimum yield strength is not
performed to determine if the pipeline
known, the yield strength to be used in
(b) * * *
is in satisfactory condition for safe
following:
. the design formula is one of the
1515 Wilson Boulevard, Arlington, VA
(1) American Gas Association (AGA),
necessary to verify the design pressure
operation. If one or more of the variables
(1)(i) The yield strength determined
22209.
under § 195.106 or to perform the
y performing all of the tensile tests (
*
testing under paragraph (a)(4) of this
Pi Specification 5L on randoml
(c)(2)(iv) are redesignated as paragraphs
7. In $195.3, paragraphs (c)(2)(iii) and
section is unknown, the design pressure
may be verified and the maximum
suece of lessens with the following
(c)(2)(v) and (c)(2) (vi) and paragraphs
operating pressure determined by-
as follows:
(c)(2)(iii) and (c)(2)(iv) are added to read
(i) Testing the pipeline in accordance
Pipe size
No. of tests
with ASME B31.8, Appendix N, to
produce a stress equal to the yield
. Less than 168.3 mm
(6% in) nominal out-
ne test for ear
strength; and
00 lengt
§ 195.3 Matter incorporated by reference.
(i) Applying, to not more than 80
side diameter.
percent of the first pressure that
One test for eact
(c) *
100 lengths
(2) * * *
in § 195.106(a) and the appropriate
produces a yielding, the design factor F
Transmission and Distribution Piping
(iii) ASME/ANSI B31.8 "Gas
factors in § 195.106(e).
Larger than 323.8 mm
(12¾ in) nominal out-
One test for each
side diameter.
50 lengths.
B31.8a-1990, B31.8b-1990, B31.8C-
Systems" (1989 with ASME/ANSI
accordance with subpart E of this part
(4) The pipeline must be tested in
1992 Addenda and Special Errata issued
to substantiate the maximum operating
exceeds 0.85, the yield strength shall be
(il) If the average yield-tensile ratio
issued February 28, 1991).
July 6, 1990 and Special Errata (Second)
pressure permitted by § 195.406.
taken as 165,474 kPa (24,000 psi). If the
average yield-tensile ratio is 0.85 or less.

<<<PAGE 17>>>

Federal Register / Vol. 59, No. 123 / Tuesday, June 28, 1994 / Rules and Regulations
33397
the yield strength of the pipe is taken as
the lower of the following:
of the girth welds must be
strength determined by the tensile tests.
(A) Eighty percent of the average yield
nondestructively tested.
no operator may operate a pipeline at a
17. Section 195.246 is amended by
pressure that exceeds any of the
determined by the tensile tests.
• (B) The lowest vield strength
revising paragraph (b) to read as follows:
pipe determined in accordance with
-(1) The internal design pressure of the
§ 195.246 Installation of pipe in a ditch.
provided in paragraph (b) of this
(2) If the pipe is not tensile tested as
§ 195.106. However, for steel pipe in
as 165,474 kPa (24,000 psi).
section, the yield strength shall be taken
Mexico and its inlets, all offshore pipe
(b) Except for pipe in the Gulf of
ipelines being converted under $ 195.5.
formula (§ 195.106) are unknown, one of
I one or more factors of the design
in water at least 3.7 m 12-ft-deep but not
13. In § 195.106(c), the last sentence is
more than 61 m (200 ft) deep, as
design pressure:
the following pressures is to be used as
be installed so that the top of the pipe
measured from the mean low tide, must
pressure that produces yield under
(i) Eighty percent of the first test
§ 195.106 Intemal design pressure.
pipe is supported by stanchions, held in
is below the natural bottom unless the
section N5.0 of Appendix N of ASME
thickness may not be more than 1.14
(c) * * * However, the nominal wall
coating, or protected by an equivalent
place by anchors or heavy concrete
B31.8, reduced by the appropriate
factors in S$ 195.106 (a) and (e); or •
or less outside diameter and is not •
(ii) If the pipe is 323.8mm (12¾ in)
on pipe that is less than 508mm (20 in)
times the smallest measurement taken
revising in the first column of the table
18. Section 195.248 is amended bv
tested to yield under this paragraph,
nominal outside diameter, nor more
than 1.11 times the smallest
in paragraph (a) the language "Other
1379 kPa (200 psig).
mm (20 in) or more in nominal outside
measurement taken on pipe that is 508
ft-deep as measured from the mean low
ofishore areas under water less than 12-
read as follows:
22. Section 195.412(a) is revised to
tide" to read "Gulf of Mexico and its
water less than 12-ft-deep as measured
inlets and other offshore areas under
§ 195.412 Inspection of rights-of-way and
crossings under navigable waters.
14. In § 195.204, the last sentence is
from the mean low tide" and by revising
not exceeding 3 weeks, but at least 26
(a) Each operator shall, at intervals.
the introductory text of paragraph (b) to
§ 195.204 Inspection-generat.
times each calendar year, inspect the
pertorm inspections unless that person
* No person may be used to
§ 195.248 Cover over buried pipeline.
each pipeline right-of-way. Methods of
surface conditions on or adjacent to
(b) Except for the Gulf of Mexico and
.*
*
*
flying or other appropriate means of
inspection include walking, driving,
phase of construction to be inspected.
has been trained and is qualified in the
read as follows:
15. Section 195.228(b) is revised to
its inlets, less cover than the minimum
required by paragraph (a) of this section
traversing the reht-of-way.
and § 195.210 may be used if—
follows:
adding a new paragraph (h) to read as
paragraph (h) as paragraph (i) and
revising paragraph (a), redesignating
23. Section 195.416 is amended by
*
*
*
§ 195.228 Welds and welding Inspection:
Standards of acceptability.
read as follows:
19. Section 195.262(d) is revised to
determined according to the standards •
(b) The acceptability of a weld is
§ 195.262 Pumping equipment.
*
*
§ 195.416 External corrosion control.
in section 6 of API Standard 1104.
pumping equipment must be installed
(d) Except for offshore pipelines,
not exceeding 15 months, but at least
(a) Each operator shall, at intervals
However, if a girth weld is unacceptable
than a crack, and if the Appendix to API
under those standards for a reason other
on property that is under the control of
once each calendar year, conduct tests
from the boundary of the pump station.
the operator and at least 15.2 m (50 ft) •
ground, or submerged pipeline facility
on each buried, in contact with the
Standard 1104 applies to the weld, the
acceptability of the weld may be
in its pipeline system that is under
determined under that appendix.
§ 195.304(b) is revised to read as
20. The introductory text of
whether the protection is adequate.
cathodic protection to determine
revising the introductory text of
16. Section 195.234 is amended by
paragraph (e) and by revising paragraph
follows:
§ 195.304 Testing of components.
actual remaining wall thickness, for
(h) The strength of the pipe, based on
$ 195.234 Wolds: Nondestructivo testing.
(b) A component, other than pipe, that
may be determined by the procedure in
paragraphs (f) and (g) of this section
in the following locations must be
(e) All girth welds installed each day
is the only item being replaced or added
ASME B31G manual for Determining
to the pipeline system need not be
the Remaining Strength of Corroded
nondestructively tested over their entire
hydrostatically tested under paragraph
(a) of this section if the manufacturer
by AGA/Battelle-A Modified Criterion
Pipelines or by the procedure developed
nondestructive testing is impracticable
circumference, except that when
certifies that either-
of Corroded Pipe (with RSTRENG disk).
for Evaluating the Remaining Strength
for a girth weld, it need not be tested if
testine is impracticable does not exceed
the number of girth welds for which
republishing the introductory text of
21. Section 195.406 is amended by
ASME B31G manual or the AGA/
Application of the procedure in the
10 percent of the girth welds installed
(a)(1) to read as follows:
paragraph (a) and revising paragraph
to corroded regions (not penetrating the
Battelle Modified Criterion is applicable
that day:
§ 195.406 Maximum operating pressure.
accordance with limitations set out in
pipe wall) in existing steel pipelines in.
ins of replacement sections, 100 percent
(g) At pipeline tie-ins, including tie-
other variations from normal operations,
(a) Except for surge pressures and
the respective procedures.

<<<PAGE 18>>>

L3398 Federal Register./ Vol. 59, No. 123 / Tuesday, June 28, 1994 1 Rules and Regulations
Issued in Washington, DC, on June 9, 1994.
Ana Sol Gutiérrez,
Acting Administrator, Research and Special
PrograinsAdministràtion.
[FR Doc. 4-1551O Filed 6-27--94; 845 amj
BILLING CODE 4910-60-,P

<<<PAGE 19>>>

November 18, 1998
Ms. Gweneyette Broussard
Shell Oil Products Company
P0 Box 2463
Houston TX 77252
Dear Ms. Broussard:
This responds to your inquiry on our interpretation ofthe term, "in-plant piping system," as defined in 49 CFR 195.2. You
asked us to expand the interpretation to include in-plant transfer piping that crosses railroad mainlines.
The request arises because some refinery or petrochemical plants are separated by a railroad mainline over which trains
travel at a reduced speed through the plant. A typical plant is said to have 3 0-50 transfer lines up to 16 inches in diameter
that cross a railroad. The crossings may be up to 500 feet long, with a 6 to 10-foot clearance between overhead crossings
and trains. As with other in-plant piping, the railroad crossings are designed and inspected in accordance with ANSI B3 1.3
standards for chemical plants and refineries and are subject to the Process Safety Management regulations ofthe
Occupational Safety and Health Administration (29 CFR 1910.119).
The safety standards in 49 CFR Part 195 do not apply to transportation through onshore production, refining, or
manufacturing facilities, or storage or in-plant piping systems associated with such facilities ( 195.1(b)(6)). To clarify the
limits ofPart 195 for in-plant piping systems, we defined the term and stated that it includes pipeline crossings of single
public thoroughfares that divide plants (59 FR 33389; June 28, 1994). We further explained that by thoroughfare we meant
a road but not a railroad. Although we considered road crossings to be comparable in most respects to other in-plant
piping, we were apprehensive about the risk oftrain-related accidents at railroad crossings.
Your request has caused us to reconsider whether railroad crossings fall under the in-plant piping exception from Part 195.
The information you provided about design, maintenance, and regulation demonstrates that in-plant railroad crossings are
subject to the same safety standards as other in-plant piping. And our increased familiarity with in-plant railroad crossings
confirms that the risk oftrain-related accidents does not jus6tify distinguishing these crossings from road crossings. It
follows that, like road crossings, in-plant railroad crossings are comparable in most respects to other in-plant piping.
Therefore, we will consider the thoroughfare interpretation of in-plant piping system to include in-plant railroad crossings.
Sincerely,
Richard B. Felder
Associate Administrator for Pipeline Safety
Page 1 of 1

<<<PAGE 20>>>

C
U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety
Administration
1200 New Jersey Avenue, SE
Washington, D.C. 20590
AUG 112010
Mr. Darin R. Burk
Manager, Pipeline Safety
Illinois Commerce Commission
527 East Capitol Avenue
Springfield, IL 62701
Dear Mr. Burk:
In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated
October 14, 2009, you requested an interpretation regarding the applicability ofthe pipeline
safety regulations to certain pipelines operated by United States Steel Corporation (USS) in the
vicinity of its Granite City Works (GCW) steelmaking complex in southern Illinois. These
pipelines consist of: (1) natural gas pipelines transporting natural gas supplied by Centerpoint
Energy's Mississippi River Transmission (MRT) pipeline to various GCW facilities; and (2) a
pipeline transporting coke oven gas produced in one GCW facility and transported to another
GCW facility for processing and burning. You stated that the GCW complex consists of a
number of facilities separated by one State highway and several public streets which are
accessible to the public. You asked whether the pipeline safety regulations applied to these lines
and if so whether they should be classified as distribution lines or transmission lines.
Natural Gas Pipelines
With respect to the natural gas pipelines, you stated that the GCW complex receives the natural
gas through four taps from the MRT pipeline. Three of the taps are located on the grounds of
GCW facilities and connect to an interconnected system of pipes within and between the
facilities. You stated that the system ofpiping that connects to the three taps leave the GCW
property boundaries six times. You stated the fourth tap is off of a separate MRT transmission
line and is located outside of the facility's property. You stated that you had no indication that
the natural gas pipelines operate above 20 percent of specified minimum yield strength (SMYS).
The Federal pipeline safety laws in 49U.S.C. 60101 et seq. apply to the gathering, transmission,
and distribution of natural and other gas by pipeline. Typically, a transmission pipeline
transporting gas to a destination facility such as a large volume customer is subject to the
pipeline safety laws and regulations up to the point where pressure control changes from the
pipeline operator to the destination facility operator (which can be on the grounds of the facility).
Beyond that point, piping operated by the facility operator entirely on the grounds ofthe facility
is considered "in-plant piping" and would not be subject to the pipeline safety regulations
although it may be subject to State building codes or other regulations. In this case, however, the
natural gas pipelines operated by GCW are not located entirely on the geographically contiguous
grounds of a facility. Rather, these lines depart GCW facilities and cross roads and highways
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations (49 CFR
Parts 190-199) in the form of interpretation letters. These letters reflect the agencys current application ofthe regulations to the specific facts
presented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and are provided to
help the public understand how to comply with the regulations.

<<<PAGE 21>>>

2
accessed by the public, albeit for relatively short distances. To the extent such lines are not on
plant property they are subject to the pipeline safety laws. Historically, PHMSA has elected not
to apply the Federal gas pipeline safety regulations to such lines if they are associated with the
plant, meaning they are operated by plant personnel, run between plant buildings, and are less
than one mile in length. PHMSA, however, would not object to a State regulating the portions of
such lines that are not on plant property ifthe State determined there was a need. Note that a
State that regulates its intrastate gas pipelines under a Public Utility Commission (PUC) may
need to determine whether the PUC is restricted to only regulating "public utilities" which GCW
presumably is not.
With respect to the question of whether such a line is a transmission line or a distribution line,
PFIMSA has not taken a position on that since we currently do not regulate such lines as stated
above. If a State decided to begin regulating such lines, one possible approach the State could
take would be to provide advance notice to operators of such lines that it would treat a line
operated below 20% SMYS as a distribution line and a line operated above 20% SMYS as a
transmission line, provide an opportunity for comment as appropriate under State procedures,
and publish a final policy.
Coke Oven Gas Pipeline
With respect to the coke oven gas pipeline, you stated that a mixture of gaseous hydrocarbons
produced by the facility is transported several thousand linear feet before it is burned. You
further stated that most ofthis distance is located under the public right of way, some of which
runs beneath a public sidewalk outside the fence from the facility in which the gas is burned.
Because the coke oven gas is produced in one GCW facility and is transported to another GCW
facility under public right-of-way and public sidewalk, this pipeline is subject to the pipeline
safety regulations. With respect to classifring such a line as a transmission or a distribution line,
you could take a similar approach as the one suggested above.
We were pleased to see that you secured a commitment by USS to comply with Illinois' pipeline
safety requirements as evidenced by its letter of May 1, 2009. Your participation in the
FederallState pipeline safety program is greatly appreciated.
I hope that this information is helpful to you. 1ff can be of further assistance, please contact me
at (202) 366-4046.
Director, Office of Regulations
The Pipeline and Hazardous Materials Safety Administration, Office ofPipeline Safety provides written clarifications ofthe Regulations
(49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application ofthe regulations to the
specific facts presented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and
are provided to help the public understand how to comply with the regulations.

## Provenance

- Official: Yes
- Source: <https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/56686/dow-pi-17-0007-12-04-2017-part-1921.pdf>
- Source ID: `phmsa`
- SHA-256: `59a4a3368297565dbe8eef60520f6db293aa5fe6e33646abfe00123d26664e56`
- Retrieved: 2026-08-20T00:59:31.977Z
- Exported: 2026-08-25T11:39:36.652Z
- Document slug: `phmsa-interpretation-pi-17-0007`

### Source metadata

```json
{
  "materialSubtype": "interpretation",
  "interpretationArea": "pipeline_safety",
  "representation": "full_text_from_official_pdf",
  "companies": [
    "The Dow Chemical Company"
  ],
  "individuals": [
    "Ms. Jennifer Ashcraft"
  ],
  "refIds": [
    "PI-17-0007"
  ],
  "catalogDates": [
    "2017-12-13"
  ],
  "catalogParts": [
    192
  ],
  "catalogRowCount": 1,
  "sourceRecordUrls": [
    "https://www.phmsa.dot.gov/node/70111"
  ],
  "linkedAttachmentUrls": [],
  "unavailableResponseUrls": [],
  "duplicateRepresentationUrls": [],
  "citedSections": [
    "195.1(b)(8)",
    "195.2",
    "195.406(b)",
    "195.112",
    "195.212",
    "195.413",
    "195.106(b)",
    "195.3",
    "195.5",
    "195.51a",
    "192.14",
    "195.8",
    "195.50",
    "195.52",
    "192.107(b)(2)",
    "195.228(b)",
    "192.243(b)",
    "195.234(b)",
    "195.204",
    "195.246",
    "195.248",
    "195.200",
    "195.262",
    "195.304(b)",
    "195.412",
    "195.416",
    "192.485",
    "173.136",
    "173.120",
    "173.132",
    "195.210"
  ],
  "catalogPageUrls": [
    "https://www.phmsa.dot.gov/regulations/title49/part/192"
  ],
  "pdfUrls": [
    "https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/56686/dow-pi-17-0007-12-04-2017-part-1921.pdf"
  ],
  "representations": [
    {
      "viewUrl": "https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/56686/dow-pi-17-0007-12-04-2017-part-1921.pdf",
      "detailUrl": null,
      "detailHtmlPath": null,
      "pdfUrl": "https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/56686/dow-pi-17-0007-12-04-2017-part-1921.pdf",
      "pdfArtifactPath": "data/sources/phmsa-interpretations/pi-17-0007.pdf",
      "pdfArtifactSha256": "643f78aca813531d97f35348b39ae033c32b92f623608596d3b297c9325d88d6",
      "extractedTextPath": "data/sources/phmsa-interpretations/pi-17-0007.v2.txt",
      "extractedTextSha256": "4065f09416dffea4b19d0e9a1ab710e293c6e0bc9c1c02c4db56c73e14d01ab4",
      "pageCount": 21,
      "extractionVersion": 2
    }
  ],
  "caveat": "Interpretations apply regulations to the facts presented and do not create independently enforceable requirements.",
  "jurisdiction": "US"
}
```
