# Gas Gathering Line Definition; Alternative Definition for Onshore Lines and Proposed Safety Standards

- **operation:** document
- **citation:** 70 FR 57536
- **title:** Gas Gathering Line Definition; Alternative Definition for Onshore Lines and Proposed Safety Standards
- **source type:** rulemaking
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** proposed
- **official:** true
- **published on:** 2005-10-03
- **effective on:** Not available
- **summary:** On September 25, 1991, DOT published a notice of proposed rulemaking to revise the definition of "gathering line" in its gas pipeline safety standards. Because the proposal proved controversial, final action was postponed pending collection of additional information. In this Supplemental Notice of Proposed Rulemaking (SNPRM), PHMSA is proposing use of a consensus standard to distinguish onshore gathering lines. PHMSA's gas pipeline safety standards do not provide an adequate basis for distinguishing these pipelines from production facilities and transmission lines. In addition, PHMSA is proposing to establish safety standards for certain higher-risk onshore gathering lines, and to relax current standards on certain low-risk onshore gathering lines. (Onshore gathering lines in inlets of the Gulf of Mexico are not affected by this rulemaking.) Operators would use a new risk-based approach to determine which of its gathering lines are "regulated onshore gathering lines" and what safety standards the lines must meet. At present, PHMSA's safety standards do not apply to onshore gathering lines in rural locations, while onshore gathering lines in non-rural locations must meet the same requirements as transmission lines. This regulatory approach is insufficient to assure that conditions on gathering lines that pose a greater risk to the public and property are addressed. And it does not take into account the lower risk some other gathering lines pose. The intended effects of the proposed rules are improved identification of gathering lines, improved public confidence in the safety of gathering lines, and safety requirements better tailored to gathering line risks.
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Federal Register, Volume 70 Issue 190 (Monday, October 3, 2005) [Federal Register Volume 70, Number 190 (Monday, October 3, 2005)] [Proposed Rules] [Pages 57536-57549] From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ] [FR Doc No: 05-19455] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration 49 CFR Part 192 [Docket No. RSPA-1998-4868; Notice 5] RIN 2137-AB15 Gas Gathering Line Definition; Alternative Definition for Onshore Lines and Proposed Safety Standards AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), U.S. Department of Transportation (DOT). ACTION: Supplemental notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: On September 25, 1991, DOT published a notice of proposed rulemaking to revise the definition of ``gathering line'' in its gas pipeline safety standards. Because the proposal proved controversial, final action was postponed pending collection of additional information. In this Supplemental Notice of Proposed Rulemaking (SNPRM), PHMSA is proposing use of a consensus standard to distinguish onshore gathering lines. PHMSA's gas pipeline safety standards do not provide an adequate basis for distinguishing these pipelines from production facilities and transmission lines. In addition, PHMSA is proposing to establish safety standards for certain higher-risk onshore gathering lines, and to relax current standards on certain low-risk onshore gathering lines. (Onshore gathering lines in inlets of the Gulf of Mexico are not affected by this rulemaking.) Operators would use a new risk-based approach to determine which of its gathering lines are ``regulated onshore gathering lines'' and what safety standards the lines must meet. At present, PHMSA's safety standards do not apply to onshore gathering lines in rural locations, while onshore gathering lines in non-rural locations must meet the same requirements as transmission lines. This regulatory approach is insufficient to assure that conditions on gathering lines that pose a greater risk to the public and property are addressed. And it does not take into account the lower risk some other gathering lines pose. The intended effects of the proposed rules are improved identification of gathering lines, improved public confidence in the safety of gathering lines, and safety requirements better tailored to gathering line risks. DATES: Persons interested in submitting written comments on the rules proposed in this notice must do so by January 3, 2006. Late filed comments will be considered so far as practicable. ADDRESSES: Comments should reference Docket No. RSPA-1998-4868 and may be submitted in the following ways: DOT Web site: http://dms.dot.gov . To submit comments on the DOT electronic docket site, click ``Comment/Submissions,'' click ``Continue,'' fill in the requested information, click ``Continue,'' enter your comment, then click ``Submit.'' Fax: 1-202-493-2251. Mail: Docket Management System: U.S. Department of Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, Washington, DC 20590-0001. Hand Delivery: DOT Docket Management System; Room PL-401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., Washington, DC between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. E-Gov Web Site: http://www.Regulations.gov . This site allows the public to enter comments on any Federal Register notice issued by any agency. Instructions: You should identify the docket number, RSPA-1998- 4868, at the beginning of your comments. If you [[Page 57537]] submit your comments by mail, you should submit two copies. If you wish to receive confirmation that PHMSA received your comments, you should include a self-addressed stamped postcard. Internet users may submit comments at http://www.regulations.gov, and may access all comments received by DOT at http://dms.dot.gov by performing a simple search for the docket number. Note: All comments will be posted without changes or edits to http://dms.dot.gov including any personal information provided. Please see the Privacy Act heading under Section V, Regulatory Analyses and Notices, of the Supplemental Information. FOR FURTHER INFORMATION CONTACT: DeWitt Burdeaux by phone at 405-954- 7220 or by e-mail at [email protected] regarding the subject matter of this notice. SUPPLEMENTARY INFORMATION: I. Background A. Why Is Distinguishing Onshore Gathering Lines a Problem? Gathering lines are pipelines used to collect and transport natural gas from the well and related production facilities to transmission or distribution pipelines, which then transport the gas to a gas consumer, such as a residence or business. PHMSA safety regulations in 49 CFR Part 192 apply to the design, construction, operation, and maintenance of gathering, transmission, and distribution pipelines. However, the regulations do not cover production facilities or onshore gathering lines in locations outside cities, towns, villages, or designated residential or commercial areas (hereinafter ``rural locations'') (Sec. 192.1(b)(4)). (Onshore gathering lines within Gulf of Mexico inlets have been subject to the inspection and burial requirements of Sec. 192.612 (Sec. 192.1(b)(5)). These lines are not affected by this rulemaking.) Since Part 192 does not cover production facilities, in non-rural locations, pipeline operators and government inspectors must distinguish regulated gathering lines from unregulated production facilities. Similarly, in rural locations they must distinguish unregulated gathering lines from regulated transmission and distribution lines. Yet, since the Part 192 regulations were first published (35 FR 13248; Aug. 19, 1970), operators and government inspectors have had difficulty making these distinctions. The reason is twofold: First, as defined in Part 192, a ``gathering line'' begins at a production facility, but the term ``production facility'' is not defined. Operators and government inspectors must interpret the term ``production facility'' to determine whether a downstream pipeline is a gathering line. In the absence of a definition, their interpretations vary. Second, although a ``transmission line or main'' marks the end of gathering under the gathering line definition, Part 192 defines ``transmission line'' as a particular type of pipeline ``other than a gathering line'' and defines ``main'' as a particular type of ``distribution line,'' which is defined as a pipeline ``other than a gathering or transmission line.'' The circularity of these definitions makes it necessary to interpret the term ``gathering line'' to determine whether a pipeline is a transmission or distribution line.\1\ However, the complexity of many gathering systems results in varied interpretations of ``gathering line.'' --------------------------------------------------------------------------- \1\ As stated in Sec. 192.3: ``Gathering line'' means a pipeline that transports gas from a current production facility to a transmission line or main. ``Transmission line'' means a pipeline, other than a gathering line, that transports gas from a gathering line or storage facility to a distribution center or storage facility; operates at a hoop stress of 20 percent or more of SMYS, or transports gas within a storage field. ``Distribution line'' means a pipeline other than a gathering or transmission line. --------------------------------------------------------------------------- B. Has DOT Proposed To Revise Its Gathering Line Definition? In 1974, the Agency tried to correct the problem of distinguishing gathering lines by proposing to revise the gathering line definition (39 FR 34569; Sept. 26, 1974). But because comments indicated many terms and phrases in the proposal were unclear, it was later withdrawn from consideration (43 FR 42773; Sept. 21, 1978). Although the definition problem remained, the Agency took no further action until 1986, when it asked the National Association of Pipeline Safety Representatives (NAPSR), a non-profit association of State pipeline safety officials, to comment on the extent of the problem. Responses from NAPSR members showed that in the 30 states with gathering lines, there were at least 2,800 gathering operators and 111,000 miles of gathering lines (as interpreted by the States). NAPSR members from five States, with about 54 percent of the operators of gathering lines and 75 percent of the mileage, stated they had disagreements with operators over whether rural pipelines were gathering lines or transmission lines. Members from three of these States said the disagreements were too numerous to list. One NAPSR member indicated numerous disagreements with two major gas gathering and transmission pipeline operators regarding the point where the gathering line ended. Another NAPSR member indicated continuing disagreements over the classification of various segments of pipeline operated by one of the largest gas gathering line operators in the United States. In 1991, boosted by the NAPSR survey, the Agency again proposed to revise the gathering line definition (Docket No. PS-122; 56 FR 48505; Sept. 25, 1991). The intent was to define the term consistent with prevailing practices. However, as with the earlier proposal, the response was generally unfavorable. Industry commenters disputed the significance of the problem, and alleged widespread reclassification of lines from production to gathering and from gathering to transmission. The Agency delayed further action pending the collection and consideration of more information. C. What Are the Statutory Considerations? PHMSA's authority to issue safety standards for gas pipeline transportation is found in 49 U.S.C. 60102(a). Gas pipeline transportation includes the gathering of gas in or affecting interstate commerce. Prior to 1992, the pipeline safety law (49 U.S.C. Chapter 601) limited safety regulation of the onshore gathering of gas to gathering lines in non-rural locations. In 1992, Congress provided DOT specific authority to define gas gathering for purposes of safety regulation, and to change the scope of regulation by defining ``regulated gathering.'' \2\ --------------------------------------------------------------------------- \2\ See Pub. L. 102-508, section 109; now 49 U.S.C. 60101(a)(21) and 60101(b). --------------------------------------------------------------------------- The 1992 statutory change expressly allows PHMSA to depart from the concepts of ``gathering'' as used under the Natural Gas Act (15 U.S.C. 717 et seq.). This allows focus on the safety purposes of the pipeline safety law for defining regulated facilities rather than on the purposes of the Natural Gas Act. The approach to defining and regulating gas gathering taken in this SNPRM does not rely on concepts of gathering as used under the Natural Gas Act. PHMSA does not intend for anyone to rely on its definition of gas gathering to decide whether particular lines are gathering within the meaning of the Natural Gas Act. In addition, the 1992 statutory change directed DOT to consider the functional and operational characteristics of the lines in labeling them as gathering, and to consider such factors as location, length of line from the well site, operating pressure, throughput, and the composition of the gas in deciding which ones to regulate. For example, in [[Page 57538]] deciding which gathering lines should be regulated, PHMSA considers location of the line in the vicinity of population as more precise than the rural/non-rural approach in the pre-1992 law. The use of this more precise approach coupled with the authority to define and to regulate ``regulated gathering'' lines makes it unnecessary to continue use of statutory terminology that limits regulation of gathering in rural areas (``outside the limits of any incorporated or unincorporated city, town, or village, or any other designated residential or commercial area''). As described more fully below, the approach to regulated gas gathering in this SNPRM follows the statutory direction. Pursuant to 49 U.S.C. 60102(b), a gas pipeline safety standard must be practicable and designed to meet the need for gas pipeline safety and for protection of the environment. To accomplish this, PHMSA must consider a number of factors in issuing a safety standard. These factors include the relevant available pipeline safety and environmental information, the appropriateness of the standard for the particular type of facility, the reasonableness of the standard, reasonably identifiable or estimated costs and benefits, any comments received from the public, and any comments and recommendations of the Technical Pipeline Safety Standards Committee (TPSSC). Except as explained in the following paragraph about public comments on the 1991 proposal, PHMSA has considered these factors in the development of this SNPRM and provides its analysis in the appropriate paragraphs of the preamble. With respect to public comments, PHMSA has dramatically altered its approach to regulating gathering lines from that of the 1991 Notice of Proposed Rulemaking (NPRM) (which was limited to a definition of gathering lines consistent with that in the Natural Gas Act). Thus, comments to the proposal in the 1991 NPRM are not addressed in detail in this SNPRM. The Agency reopened the docket to public comments in an electronic public discussion forum in 1999 and provided several other opportunities for public input into the development of this SNPRM. These comments have been used in the development of this SNPRM. If a commenter to the 1991 proposal believes that this SNPRM does not adequately address the concerns raised in earlier comments, the commenter should raise the concerns again. Comments and recommendations of the TPSSC will be addressed when a final action is prepared on this SNPRM. D. What Has PHMSA Done To Get More Public Comments on Defining and Regulating Gathering Lines? In 1999, in furtherance of the ongoing 1991 gathering line proceeding and Congress' action on gathering lines, the Agency invited further public comments on the definition problem and the need to regulate rural gathering lines (Docket No. RSPA-1998-4868; 64 FR 12147; Mar. 11, 1999). The comments largely focused on a comprehensive treatment of the definition problem that the American Petroleum Institute (API) submitted on behalf of a coalition of 23 trade associations (RSPA-1998-4846-85). API later published the treatment as API Recommended Practice 80, ``Guidelines for the Definition of Onshore Gas Gathering Lines'' (API RP 80). API RP 80 defines gas gathering lines through a series of definitions, descriptions, and diagrams intended to represent the varied and complex nature of production and gathering in the United States. You may purchase a copy of API RP 80 from API through its Web site ( http://www.api.org ) or review a copy in room 2103 of the Nassif Building, 400 7th Street, SW., Washington, DC by contacting Jenny Donohue at (202) 366-4046 or [email protected] . Although industry commenters spoke favorably about the API RP 80 gathering line definition, NAPSR objected to the use of certain ``furthermost downstream'' endpoints to mark the beginning and end of gathering in the definition. NAPSR's concern was that if the definition were included in Part 192, operators would have an incentive to establish or move the endpoints further downstream to reduce the amount of regulated pipeline. NAPSR's concern is plausible because gathering begins at the end of production, which is not covered by Part 192. The amount of gathering subject, or potentially subject, to regulation becomes less the further production extends downstream. A similar situation exists at the end of gathering, which marks the beginning of transmission or distribution under Part 192. The amount of transmission or distribution lines subject to regulation becomes less the further gathering lines extends downstream. The Agency also had doubts about adopting the API RP 80 definition, as expressed in a letter to API dated January 12, 2001 (RSPA-1998-4868- 108). Nevertheless, the Agency did not discount the possibility of using API RP 80 as an alternative to the 1991 proposed definition. While considering its next step, in 2002, the Agency published an Advisory Bulletin to remind operators it was still regulating gathering lines according to court precedents and prior interpretations (ADB-02- 06; 67 FR 64447; October 18, 2002). Then in 2003, the Agency held public meetings in Austin, Texas (68 FR 62555; November 5, 2003) and Anchorage, Alaska (68 FR 67129; December 1, 2003) to attract more comments from interested persons on the best way to define gas gathering lines and what, if any, safety regulations may be needed for rural gathering lines. At the meetings, the Agency gave the history of the gas gathering issue and proffered a ``sliding corridor'' concept as a possible basis for deciding which lines should be regulated. This concept originated in a consent order the Agency issued to Hanley & Bird, Inc., a Pennsylvania gas production and gathering operator.\3\ It would require operators to slide an imaginary corridor 1000 feet long and 200 or 440 yards wide, depending on pipeline hoop stress, along their gathering lines. Wherever the corridor contains five or more dwellings, the gathering line would be subject to pipeline safety regulations, and the extent of regulation would vary by operating stress level. Transcripts of both meetings are in the docket (RSPA-1998-4868-120 and 122). --------------------------------------------------------------------------- \3\ The order may be viewed at http://ops.dot.gov/regions/easterndoc/cpf13002o.wpd . --------------------------------------------------------------------------- Following the two meetings, to promote informed public participation in resolving the gathering line issues, the Agency published a notice that clarified its intentions about defining and regulating gathering lines (69 FR 5305; February 4, 2004). In the notice, the Agency clarified its intention to adopt definitions of production and gathering that would identify the beginning of gathering without overlapping the jurisdiction of State regulations on production. The Agency said it was seeking definitions that could be applied consistently by both regulators and operators. Regarding rural gathering lines, the Agency explained the need for comments on an appropriate approach to identifying lines that should be regulated. The notice also extended the deadline for receipt of written comments to March 4, 2004. In addition to the 1999 Web discussion and 2003 public meetings, the Agency met several times over the last two years with State agency officials, industry representatives, and others to obtain views on gathering line risks and the need for regulations. Notes [[Page 57539]] of these informal meetings are in the docket (RSPA-1998-4868). E. What Were the Main Points Commenters Made? Twenty-three comments were submitted following the public meetings and clarification notice. A summary of significant comments follows. 1. Definition of Gathering Line Three industry commenters expressed satisfaction with the current Part 192 definition and prior Agency interpretations. But most commenters who addressed the issue, including a coalition of trade associations (API, the Gas Processors Association (GPA), the Louisiana Mid-Continent Oil and Gas Association, the Texas Oil and Gas Association, and the Texas Pipeline Association), urged the Agency to adopt API RP 80 as the basis for determining onshore gas gathering lines. These commenters welcomed the flexibility of API RP 80, and believed it would result in few, if any, reclassifications of pipelines from production to gathering or gathering to transmission. Taking a different view, NAPSR opposed the unqualified use of API RP 80 to identify gas gathering lines. First, regarding the beginning of gathering under section 2.2(a)(1) of API RP 80, NAPSR suggested that production operations should be limited to piping and equipment used solely in the process of extracting natural gas from the earth for the first time. This process involves removing natural substances from the earth, separating out natural gas, and preparing the gas for transportation. NAPSR stated that under its suggested limitation, any piping that serves a function besides processing in aid of extraction would be part of gathering operations rather than production operations. Secondly, NAPSR suggested limitations on the end of gathering under the API RP 80 definition. These limitations, such as restricting the end of gathering to the first, rather than furthermost, downstream gas processing plant, were intended to remove the opportunity to manipulate the changeover from gathering to transmission. In a letter dated September 9, 2004, NAPSR suggested ``gathering pipeline'' and ``production facility'' be defined as follows: ``Gathering pipeline'' (a) Means any pipeline or part of a connected series of pipelines used to transport gas from the endpoint of a production facility to the first natural gas processing plant. (b) In the absence of a natural gas processing plant, means any pipeline or connected series of pipelines used to: 1. Transport gas from the endpoint of a production facility to the furthermost downstream of the following endpoints: (A) The outlet of the first downstream gathering line gas treatment facility; or (B) The first downstream point where gas produced in the same production field or contiguous production fields is commingled; or (C) The outlet of the first downstream compressor used to facilitate deliveries from production operations into a pipeline. 2. Transport gas from a gathering line exclusively to points in adjacent production operations or gathering facility sites for use as fuel, gas lift, or gas injection within those operations; and (c) Does not include a natural gas processing plant. ``Production facility'' means any pipeline or equipment or part of a connected series of pipelines used solely in the process of extracting natural gas from the earth for the first time. 2. Need To Regulate Rural Gathering Lines As to the need to regulate gas gathering lines in rural locations, some industry commenters contended rural gathering lines generally pose a low risk to public safety, citing an incident survey GPA conducted in December 2003.\4\ GPA itself commented that based on its survey, onshore gas gathering lines do not pose a significant risk that warrants extensive new Federal regulations. A few industry commenters and the U.S. Department of Energy (DOE) suggested the Agency should first identify and analyze the risks involved and then target regulations to specific problems. Cook Inlet Keeper, a nonprofit organization dedicated to protecting Alaska's Cook Inlet Watershed and North Slope Borough, the northernmost county of Alaska, advocated that the Agency regulate all unregulated lines threatening people and the environment. Cook Inlet Keeper also submitted data on releases from unregulated pipelines in Alaska. --------------------------------------------------------------------------- \4\ GPA presented the survey at a meeting of the Agency's gas pipeline safety advisory committee on February 5, 2004 (RSPA-1998- 4470-120). --------------------------------------------------------------------------- 3. Regulatory Approach Concerning the appropriate approach to regulation, the coalition of trade associations suggested a tiered approach to regulating onshore gathering lines. Under the coalition's approach, the extent of regulation would increase with pipeline risk as determined by operating parameters and population density. Lines posing a lower risk to the public would be subject to fewer safety standards than they are now. This relaxation of current regulatory burden on lower-risk lines would help offset the added cost of regulating higher-risk gathering lines that are not currently regulated. ONEOK, Inc., an operator of gas gathering lines, suggested a similar but more detailed tiered approach. The coalition's approach is summarized as follows: ------------------------------------------------------------------------ Tier Gathering line Regulation ------------------------------------------------------------------------ I........................ All in Class 1 or 2 Periodic summary report location. of incidents; line markers; and one-call damage prevention programs. All = 20% SMYS in Tier I plus corrosion rural Class 3 or 4 control and a public location. awareness program. III...................... All >= 20% SMYS in Current Part 192 non-rural Class 3 requirements. or 4 location. ------------------------------------------------------------------------ Delta County, Colorado preferred the sliding corridor approach the Agency had discussed at the public meetings. Two industry commenters favored a hands-off approach that would leave the regulation of rural gathering to State agencies that oversee oil and gas production. [[Page 57540]] 4. Impact Several commenters were concerned about the impact of any new Federal regulations on gathering lines in rural locations. DOE and the Independent Petroleum Association of America were particularly concerned that increased costs could cause producers to shut-in marginally profitable wells. They pointed out that since marginal wells account for about 10 percent of the United States' gas production, additional costs would have the potential to reduce the Nation's supply of gas. (A discussion of the energy impacts of this proposal is found under the Executive Order 13211 heading in Section V, Regulatory Analyses and Notices, of this document.) II. Resolving the Definition Problem A. What Alternatives to the 1991 Proposal Did the Agency Consider? In view of the congressional directives and the importance of distinguishing onshore gas gathering lines, PHMSA believes resolving the definition problem is essential. However, the Agency's previous attempts in 1974 and again in 1991 to resolve the matter by formulating a gathering line definition were controversial. The controversy was no doubt due to the varied and complex configurations of gas gathering systems throughout the industry. For this reason, PHMSA now believes a single definition that is wholly consistent with industry practices probably cannot be developed. This conclusion and the comments resulting from the Austin and Anchorage meetings have caused the Agency to take a closer look at using API RP 80. It is a comprehensive treatment of gas gathering that was developed by experienced personnel representing over 20 national, regional, and State oil and gas industry associations. It covers every aspect of the gathering function, from its beginning in production operations, which are separately defined, to various defined endpoints. The attention to detail and solid backing by commenters led the Agency to believe API RP 80 can be used appropriately to distinguish gathering lines under Part 192 without the controversy attendant to prior proposals. PHMSA does not intend that persons use API RP 80 for non-safety purposes, such as to identify gathering under the Natural Gas Act. In this regard, readers should note API RP 80, by its terms, applies only in the context of pipeline safety: ``[T]he definitions presented herein are not designed to address issues--nor are they intended for application--in any regulatory context other than gas pipeline safety pursuant to the Federal Pipeline Safety Act.'' (Section 2.6.2.4 of API RP 80). The Agency considered the following ways API RP 80 could serve to determine onshore gas gathering under Part 192: 1. Use API RP 80 as Guidance Continue to apply the present Part 192 gathering line definition, but rely on API RP 80 as guidance to determine the beginning and end of onshore gathering. The advantages of this alternative are that comments indicate some operators would likely support it and rulemaking would not be necessary. On the other hand, this alternative would probably not be sufficient to satisfy the congressional directive to define gas gathering. And it would provide a shaky basis for regulating rural gathering lines. In addition, NAPSR's comments suggest many State pipeline safety agencies would be unlikely to accept some API RP 80 provisions even as guidance. 2. Adopt API RP 80 as a Definition Adopt API RP 80 as the basis for determining onshore gas gathering lines. This alternative has wide industry acceptance, would likely minimize the present difficulty of distinguishing gathering lines, and, considering its wide acceptance, would probably result in few pipeline reclassifications. However, besides a gathering line definition, API RP 80 contains many supplemental definitions, descriptions, and diagrams. Although these supplemental provisions are helpful to understand the definition, they could prove difficult to apply uniformly and probably would lead to further varied interpretations. Also, the flexibility of API RP 80 that industry applauds, NAPSR contends could result in equipment being relocated to avoid regulations. If that happened, State pipeline safety agencies could lose control over many miles of pipeline they now regulate, and public safety could be compromised. 3. Adopt API RP 80 as a Definition, But With Limitations Adopt API RP 80 as the basis for determining onshore gas gathering lines, but limit operators' ability to establish endpoints merely to avoid regulation. The main advantage of this alternative is it balances industry's desire to use API RP 80 to determine gathering lines under Part 192 with NAPSR's desire for more definite endpoints. The disadvantage is that limitations could make API RP 80 more difficult to apply. In addition, proposing any limitation on how API RP 80 is applied could renew industry claims of line reclassifications. B. What Are the Details of the Definition PHMSA Is Now Proposing? PHMSA wants to define ``onshore gathering line'' in a way that not only reasonably matches current classifications but also addresses the concerns of State pipeline safety agencies. PHMSA, therefore, chose the third alternative, for it alone takes into account NAPSR's concerns. PHMSA believes NAPSR's concerns deserve considerable weight because, under the pipeline safety law, onshore gas gathering lines are largely intrastate pipeline facilities. As such, they are under, or eligible for, exclusive regulation by certified State pipeline safety agencies. When regulated by these agencies through adoption and enforcement of PHMSA safety standards, PHMSA's role is to oversee State agency performance. In other words, regulation of an intrastate onshore gas gathering line by a certified State agency, removes the line from the direct regulatory authority of PHMSA. PHMSA is proposing to define ``onshore gathering line'' as it is defined in section 2.2 of API RP 80, but with a few limitations on applying the API RP 80 definition (see the proposed amendment to Sec. 192.3 below). The proposed limitations, based on NAPSR's comments, and PHMSA's concerns that it raised during the meetings held on gathering line regulation, are designed to assure gathering line determinations do not stray significantly from PHMSA's historic interpretations of gathering or do not abuse the ``furthermost downstream'' concept. 1. Beginning of Gathering The beginning of an onshore gathering line under section 2.2(a)(1) of API RP 80 is the furthermost downstream point in a production operation.\5\ PHMSA is proposing to restrict this point to piping or equipment used solely in the process of extracting natural gas from the earth for the first time and preparing it for transportation or delivery. Under this restriction, certain dual use equipment that can serve either a production or transportation function would be part of gathering when not used solely in the [[Page 57541]] extraction and preparation of gas for transportation. For example, drip pots, which provide a separation function, are used in pipeline transportation to maintain the quality of gas delivered to customers. When used this way, a drip pot would not be part of production operations even though as a separator it could conceivably be used in the extraction and preparation of gas for transportation. Also, separation or dehydration equipment is often used to safeguard the operation of gathering compressors. Under the proposed limitation, any equipment being used to protect a gathering compressor would not be part of production operations. --------------------------------------------------------------------------- \5\As defined in section 2.3 of API RP 80, ``production operation'' means piping and equipment used for production and preparation for transportation or delivery of hydrocarbon gas and/or liquids and includes the following processes: (a) Extraction and recovery, lifting, stabilization, treatment, separation, production processing, storage, and measurement of hydrocarbon gas and/or liquids; and (b) Associated production compression, gas lift, gas injection, or fuel gas supply. --------------------------------------------------------------------------- 2. End of Gathering Under the API RP 80 definition of onshore gathering line, gathering ends at the furthermost downstream of five possible endpoints. The first possible endpoint is the inlet of the furthermost downstream natural gas processing plant, other than a natural gas processing plant located on a transmission line (section 2.2(a)(1)(A) of API RP 80). PHMSA is proposing this endpoint may not be a natural gas processing plant located further downstream than the first downstream natural gas processing plant unless the operator can demonstrate, based on sound engineering reasons, that gathering should be extended beyond that first plant. DOT interpretations and State agency enforcement actions have recognized the first downstream natural gas processing plant as the customary end of gathering. The proposed limitation is based on this practice, but it would allow operators the flexibility of ending gathering to a further downstream processing plant essential to gathering. The second possible endpoint under section 2.2(a)(1)(B) of API RP 80 would apply only if no other endpoint under 2.2(a)(1) (A), (C), (D) or (E) exists. This endpoint is the outlet of the furthermost downstream gathering line gas treatment facility. The third possible endpoint is the furthermost downstream point where gas produced in the same production field or separate production fields is commingled (section 2.2(a)(1)(C) of API RP 80). This endpoint recognizes a gathering line may receive gas from several production fields. However, PHMSA is concerned that since the endpoint does not restrict the distance between separate production fields, a gathering line could continue endlessly, causing reclassification of pipelines from transmission to gathering. NAPSR suggested commingling should be limited to adjacent fields. PHMSA believes ``adjacent'' is very restrictive. To set some limit, PHMSA is proposing the separate production fields from which gas is commingled must be within 50 miles of each other. PHMSA is interested in receiving comments on whether a maximum distance between production fields from which gas is commingled should be specified. One limitation is proposed on the fourth possible endpoint. This endpoint is the outlet of the furthermost downstream compressor station used to lower gathering line operating pressure or to facilitate deliveries into the pipeline from production operations or to increase gathering line pressure for delivery to another pipeline (section 2.2(a)(1)(D) of API RP 80). Gathering systems may contain many compressor units. (In gathering systems, compressors are smaller, self contained units, rather than the larger multiple unit facilities referred to as compressor stations.) In many cases, these compressor units lower the pressure on the upstream (suction) side to allow gas to flow from the wells. PHMSA believes these to be necessary to the gathering process. Also, whether they are located downstream of a processing plant or, stand alone, in the absence of a processing plant, many compressors serve to boost the pressure from the gathering line into either transmission or distribution pipelines. PHMSA is proposing to limit the endpoint to the outlet of a compressor used to deliver gas to another pipeline. In this case, PHMSA considers the gas to have been ``gathered'' and prepared for transportation. This is consistent with the Agency's past interpretation and enforcement policy. The fifth possible endpoint is the connection to another pipeline downstream of the furthermost downstream endpoint under sections 2.2(a)(1)(A) through (D) of API RP 80, or in the absence of such endpoint, the furthermost downstream production operation (section 2.2(a)(1)(E) of API RP 80). This endpoint applies to connecting lines called ``incidental gathering'' under section 2.2.1.2.6 of API RP 80. An example of a connecting line is a pipeline that runs from the outlet of a natural gas processing plant to a transmission line. III. Regulation of Onshore Gas Gathering Lines A. How Are Onshore Gas Gathering Lines Currently Regulated? 1. Non-Rural Lines In non-rural locations, the gathering of gas by pipeline has been subject to Part 192 since these safety standards were published in 1970. Gathering lines in non-rural locations must meet the same safety standards for design, construction, operation, and maintenance as gas transmission lines, except Sec. 192.150, standards for passage of smart pigs, and Subpart O of Part 192, integrity management (see Sec. 192.9). In addition, the drug and alcohol testing regulations in 49 CFR part 199 apply to onshore gas gathering lines in non-rural locations because these lines are regulated by Part 192. These regulations require operators to test personnel for use of prohibited drugs and misuse of alcohol. Persons subject to testing are those who perform a Part 192 regulated operation, maintenance, or emergency-response function on a regulated pipeline. As required by 49 CFR part 191, operators of onshore gathering lines in non-rural locations also must submit reports to PHMSA. Operators must submit telephonic and follow-up written reports of incidents involving a death, hospitalization, or property damage of $50,000 or more. Other requirements include safety-related condition reports and annual reports about pipe inventory and leaks repaired. 2. Rural Lines As discussed above, Part 192 does not apply to the onshore gathering of gas in rural locations. Rural gathering lines are also excluded from Part 191 reporting requirements and Part 199 drug and alcohol regulations. Until 1992, rural gathering lines were excluded by statute from pipeline safety regulation (although in 1990 Congress granted limited authority over gathering lines in Gulf of Mexico inlets (see Pub. L. 101-599)). In 1992, an amendment to the pipeline safety law gave DOT authority to regulate the safety of rural lines where warranted by risk. B. Are Safety Regulations Needed for Onshore Rural Gathering Lines? In 1992, Congress recognized some rural gathering lines that were exempt from DOT's regulatory authority may present risks that warrant safety regulation. Congress authorized DOT to define a class of ``regulated gathering lines'' that warrant safety regulation based on information about risk. In its report on H.R. 1489, a bill that led to the 1992 change in the law, the House Committee on Energy and Commerce said ``DOT should find out whether any gathering lines present a risk to people or t
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