General rule for the regulation of natural gas pipelines

15 CAR § 275-406. General rule for the regulation of natural gas pipelines.#

(a)Definitions. As used in this section:#

(1)"Jurisdictional pipeline" means any onshore natural gas pipeline regulated under Federal Regulation 49 C.F.R. pt. 192, as amended, which is within the jurisdiction of the Oil and Gas Commission in accordance with Arkansas Code § 15-71-110, as amended;#

(2)"Nonjurisdictional pipeline" means any onshore natural gas pipeline, including but not limited to flowlines, production lines, or gathering lines, not under jurisdiction of Federal Regulation 49 C.F.R. pt. 192, as amended, which is within the jurisdiction of the Oil and Gas Commission in accordance with Arkansas Code § 15-71-110, as amended;#

(3)"Perennial stream" means:#

(A)A stream that has flowing water year-round during a typical year;#

(B)The water table is located above the streambed for most of the year;#

(C)Groundwater is the primary source of water for stream flow; and#

(D)Runoff from rainfall is a supplemental source of water for stream flow; and#

(4)"Pipeline operator" means any person who owns or operates and is responsible for the construction, operation, and maintenance of a natural gas pipeline which transports natural gas from the well within the jurisdiction of the Oil and Gas Commission in accordance with Arkansas Code § 15-71-110, as amended.#

(b)Applicability.#

(1)For purposes of this section, the jurisdiction of the Oil and Gas Commission, as specified in Arkansas Code § 15-71-110, as amended, extends and includes:#

(A)The production process or production facility as defined in Arkansas Code § 15-71-110, as amended; or#

(B)A natural gas pipeline or associated facility whose owner is not affiliated with an Arkansas natural gas public utility and the majority owner is either a production company or an affiliate of a production company.#

(2)(A)Every pipeline operator transporting natural gas by pipeline from the well is subject to the applicable provisions of this section.#

(B)Natural gas pipelines from the well to a custodial transfer meter located on the well pad are exempt from the provisions of this section.#

(c)General requirements for all jurisdictional and nonjurisdictional pipelines.#

(1)(A)Each pipeline operator shall apply, on a form prescribed by the Director of Production and Conservation, for an initial statewide permit to construct and operate a natural gas pipeline system.#

(B)The initial permit application shall contain at a minimum the following:#

(i)Name, address, and contact information for the pipeline operator;#

(ii)Map, or other media acceptable to the director, showing the location of all natural gas pipelines from the producing wells through any production or processing equipment or treating facility, and to the termination point of the jurisdiction of the commission, including all public road, railroad, and perennial stream crossings;#

(iii)A determination as to what pipelines are jurisdictional; and#

(iv)Submission of the applicable permit fee as follows:#

(a)No permit fee is required for one#

(1)mile or less, provided the pipeline does not cross a public road, railroad, or perennial stream;#

(b)Less than fifty#

(50)miles of pipeline, including pipelines in subdivision (c)(1)(B)(iv)(a) of this section, above, which cross a public road, railroad, or perennial stream - five hundred dollars ($500);#

(c)Fifty#

(50)miles to less than one hundred#

(100)miles of pipeline - one thousand five hundred dollars ($1,500);#

(d)One hundred#

(100)miles to less than two hundred fifty#

(250)miles of pipeline - two thousand five hundred dollars ($2,500); or#

(e)Two hundred fifty#

(250)miles or more of pipelines - five thousand dollars ($5,000).#

(2)Each pipeline operator shall be required to submit an annual permit renewal by January 31 of each year.#

(3)(A)The renewal permit shall include a revised pipeline map showing any new pipeline additions constructed during the previous year, an annual report on a form prescribed by the director, along with a permit renewal fee in accordance with subdivision (c)(1)(B)(iv) of this section, above.#

(B)The renewal permit shall also contain the pipeline operator's determination as to which pipelines are jurisdictional.#

(4)(A)Each pipeline operator shall submit a notice of construction or repair, on a form prescribed by the director, prior to commencing construction or within forty-eight#

(48)hours after completing repair, for each segment or project length of pipeline constructed during the year.#

(B)The notice shall indicate the location and extent of the natural gas pipelines to be constructed or repaired.#

(5)(A)Each pipeline operator shall notify the director or his or her designee within five#

(5)calendar days of exceeding any natural gas pipeline's established maximum allowable operating pressure.#

(B)This shall be submitted on a form prescribed by the director.#

(6)Each pipeline operator shall submit a notice of incident, on a form prescribed by the director, for each incident of release due to natural gas pipeline failure which results in:#

(A)A death or personal injury requiring inpatient hospitalization;#

(B)A total cost of repair, including the value of natural gas lost, of ten thousand dollars ($10,000) or more; or#

(C)An event that is significant, in the judgment of the operator, even though it did not meet the criteria of subdivisions (c)(6)(A) and#

(B)of this section, above.#

(d)Requirements for all nonjurisdictional pipelines.#

(1)(A)All pipelines crossing any stream or streambed shall comply with applicable state rules and federal regulations.#

(B)Additionally, any stream crossing of perennial streams, constructed on or after December 16, 2007, shall maintain a minimum of fifty feet (50') of undisturbed stream bank for the protection of the stream.#

(C)However, the fifty feet (50') of undisturbed stream bank requirement may be modified by the director provided that the pipeline operator provides proof that the pipeline operator has received approval for the crossing from a state or federal agency.#

(2)(A)Each pipeline operator shall place and maintain appropriate signage at all natural gas pipeline crossings of public roads and railroads.#

(B)The marker should include the words "Warning", "Caution", or "Danger" followed by the words "Gas Pipeline", along with the pipeline operator's name and telephone number where the pipeline operator can be reached at all times.#

(3)Each pipeline operator which operates natural gas pipelines within the limits of any incorporated or unincorporated city, town, or village, shall be a member of a qualified one-call program.#

(4)All natural gas pipelines, constructed after the effective date of this section, shall be buried at least twenty-four inches (24") below ground surface, or in accordance with other applicable state or federal laws.#

(e)Requirements for jurisdictional pipelines.#

(1)All jurisdictional pipelines shall be in compliance with construction, operation, and maintenance requirements contained in federal regulations 49 C.F.R. pt. 192, Subparts A - P, as amended, which are herein incorporated by reference.#

(2)All jurisdictional pipelines shall be subject to the applicable enforcement provisions of federal regulation 49 C.F.R. pt. 190, as amended, which are herein incorporated by reference.#

(3)All jurisdictional pipelines shall be subject to the applicable incident and other reporting requirements contained in federal regulation 49 C.F.R. pt. 191, as amended, which are herein incorporated by reference, and all such reports shall be submitted to the commission.#

(4)All pipeline operators of jurisdictional pipelines shall be subject to the applicable drug and alcohol testing requirements contained in federal regulation 49 C.F.R. pt. 199, as amended, which are herein incorporated by reference.#

(5)All jurisdictional pipelines which contain over one hundred parts per million (100 ppm) hydrogen sulfide shall also be subject to the provisions of subsection#

(f)of this section, below, unless the provisions of subsection#

(f)of this section are less stringent than any applicable requirement of this subsection.#

(f)Additional requirements for all pipelines containing one hundred parts per million (100 ppm) or greater hydrogen sulfide.#

(1)Construction, operating, and maintenance requirements.#

(A)All pipeline materials must be chemically compatible with any natural gas transported by the natural gas pipeline and such pipeline shall maintain structural integrity under the anticipated temperatures and environmental conditions for which the natural gas pipeline may be exposed.#

(B)All piping must be of sufficient thickness or must be installed with adequate protection to withstand anticipated external pressures and loads that will be imposed on the pipe after installation.#

(C)No natural gas pipeline may be operated after new construction, repair, or relocation until it has been successfully tested for at least one#

(1)hour with a minimum pressure of one and twenty-five hundredths (1.25) times the maximum operating pressure to substantiate the maximum operating pressure with all leaks located and eliminated.#

(D)All metallic natural gas pipelines must be adequately protected from both external and internal corrosion and the pipeline operator is required to submit an annual report by March 31 of every year for the preceding calendar year of the effectiveness of the company's corrosion program, with such protection efforts performed by an independent contractor specializing in the control of corrosion.#

(2)(A)Each pipeline operator shall prepare, maintain, and follow for each natural gas pipeline, a manual of written procedures for conducting operations, maintenance activities, and emergency response.#

(B)This plan must be reviewed and updated as often as necessary.#

(C)A review must be conducted annually but not to exceed fifteen#

(15)months between reviews.#

(3)Each pipeline operator shall:#

(A)Have a procedure for continuing surveillance of its facilities; and#

(B)Take appropriate action regarding failures, corrosion, and operating conditions.#

(4)(A)Each pipeline operator must develop and carry out a damage prevention program to prevent damage to its natural gas pipelines from excavation activities.#

(B)Each pipeline operator shall be a member of the statewide One Call Center system.#

(C)The plan must have a method of communicating to excavators in the area where the natural gas pipeline is located of the existence of the natural gas pipeline, provide a means of receiving and recording notification of planned excavation activities, provide for temporary marking of the natural gas pipeline and inspection of the natural gas pipeline when the pipeline operator has reason to believe it could be damaged by excavation activities.#

(5)(A)Each pipeline operator shall establish written procedures to minimize the hazards resulting from a natural gas pipeline emergency event.#

(B)Each plan must include at a minimum:#

(i)Methods of receiving and identifying an event which requires immediate response;#

(ii)Methods for establishing and maintaining adequate communication with appropriate emergency response and public officials;#

(iii)Methods for determining safe areas related to evacuation and security during an event; and#

(iv)Methods for training employees of their duties and responsibilities during an event.#

(6)(A)Each pipeline operator shall develop and implement a written continuing public awareness plan which includes provisions for educating the:#

(i)Public;#

(ii)Appropriate governmental organizations; and#

(iii)Persons engaged in excavation activities.#

(B)Use of a one-call notification prior to conducting excavation, possible hazards associated with unintended releases from the natural gas pipeline, physical indications that such a release may have occurred, steps that should be taken for the safety of the public, procedures for reporting such an event.#

(C)The program must include activities to advise affected municipalities, schools, businesses, and residents along the pipeline right-of-way.#

(D)The program and media used must be as comprehensive as necessary to reach all areas in which the pipeline operator shall transport gas.#

(7)Each pipeline operator shall establish procedures for analyzing accidents and failures for the purpose of determining the cause of the failure and minimizing the possibility of subsequent reoccurrence.#

(8)Each pipeline operator shall not operate any natural gas pipeline at a pressure that exceeds the documented pressure at which the natural gas pipeline may be safely operated.#

(9)(A)Each pipeline operator shall have a patrol program to observe surface conditions on and adjacent to its pipeline right-of-way for indications of leaks, construction activity, erosion, condition of signage, conditions at public road and railroad crossings, and other factors affecting safety and operation of the pipeline.#

(B)Patrols shall be conducted and documented at least twice each calendar year, not to exceed seven and one-half (7 1/2) months between patrols.#

(10)(A)Each pipeline operator shall maintain appropriate pipeline markers at all public road and railroad crossings and along the pipeline at intervals necessary to identify the location of the buried pipeline.#

(B)The marker should include the words "Warning", "Caution", or "Danger" followed by the words "Gas Pipeline" along with the pipeline operator's name and telephone number where the pipeline operator can be reached at all times.#

(11)Each pressure relieving device in a compressor station, pressure limiting station, or regulator station must be inspected, tested, and operated at the pipeline's maximum operating pressure once each calendar year and not to exceed fifteen#

(15)months to determine proper operation.#

(12)Each remote controlled shutdown device must be inspected and tested once each calendar year and not to exceed fifteen#

(15)months to determine proper operation.#

(13)Each line valve that serves to block a segment of pipeline and/or might be used in an emergency, must be inspected and partially operated once each calendar year and not to exceed fifteen#

(15)months.#

(14)Each pipeline operator shall maintain records associated with operation and maintenance of the pipeline required in this section.#

(15)(A)Each natural gas pipeline abandoned in place must be disconnected from all sources of gas, purged of gas, filled with freshwater or inert material, and sealed at both ends.#

(B)When a pipeline is being purged, all efforts must be taken to:#

(i)Prevent the formation of a hazardous mixture of gas and air;#

(ii)Ensure that all safety equipment necessary is present;#

(iii)Remove all nonessential persons from the area; and#

(iv)Ensure the public is adequately protected.#