# Pipeline Safety: Safety of Gas Gathering Pipelines: Extension of Reporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments

- **operation:** document
- **citation:** 86 FR 63266
- **title:** Pipeline Safety: Safety of Gas Gathering Pipelines: Extension of Reporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments
- **source type:** rulemaking
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-11-15
- **effective on:** 2022-05-16
- **summary:** PHMSA is revising the Federal Pipeline Safety Regulations to improve the safety of onshore gas gathering pipelines. This final rule addresses Congressional mandates, Government Accountability Office recommendations, and public input received as part of the rulemaking process. The amendments in this final rule extend reporting requirements to all gas gathering operators and apply a set of minimum safety requirements to certain gas gathering pipelines with large diameters and high operating pressures. The rule does not affect offshore gas gathering pipelines.
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- **source url:** https://www.federalregister.gov/documents/2021/11/15/2021-24240/pipeline-safety-safety-of-gas-gathering-pipelines-extension-of-reporting-requirements-regulation-of
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Federal Register, Volume 86 Issue 217 (Monday, November 15, 2021) [Federal Register Volume 86, Number 217 (Monday, November 15, 2021)] [Rules and Regulations] [Pages 63266-63299] From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ] [FR Doc No: 2021-24240] [[Page 63265]] Vol. 86 Monday, No. 217 November 15, 2021 Part III Department of Transportation ----------------------------------------------------------------------- Pipeline and Hazardous Materials Safety Administration ----------------------------------------------------------------------- 49 CFR Parts 191 and 192 Pipeline Safety: Safety of Gas Gathering Pipelines: Extension of Reporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments; Final Rule Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Rules and Regulations [[Page 63266]] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration 49 CFR Parts 191 and 192 [Docket No. PHMSA-2011-0023; Amdt. Nos. 191-30; 192-129] RIN 2137-AF38 Pipeline Safety: Safety of Gas Gathering Pipelines: Extension of Reporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), Department of Transportation (DOT). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: PHMSA is revising the Federal Pipeline Safety Regulations to improve the safety of onshore gas gathering pipelines. This final rule addresses Congressional mandates, Government Accountability Office recommendations, and public input received as part of the rulemaking process. The amendments in this final rule extend reporting requirements to all gas gathering operators and apply a set of minimum safety requirements to certain gas gathering pipelines with large diameters and high operating pressures. The rule does not affect offshore gas gathering pipelines. DATES: The effective date of this final rule is May 16, 2022. The Director of the Federal Register approved the incorporation by reference of certain material listed in this rule as of April 14, 2006. FOR FURTHER INFORMATION CONTACT: Technical questions: Steve Nanney, Project Manager, by telephone at 713-272-2855. General information: Sayler Palabrica, Transportation Specialist, by telephone at 202-366-0559. SUPPLEMENTARY INFORMATION: I. Executive Summary A. Purpose of the Regulatory Action B. Summary of the Major Provisions of the Regulatory Action C. Costs and Benefits II. Background A. Detailed Overview B. Advance Notice of Proposed Rulemaking C. Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 D. Government Accountability Office (GAO) Recommendations E. Notice of Proposed Rulemaking F. Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020 III. Analysis of NPRM Comments, GPAC Recommendations, and PHMSA Response A. Reporting Requirements--Sec. Sec. 191.1, 192.5, 191.17, and 191.29 B. Gathering Line Definitions--Sec. Sec. 192.3 and 192.8 C. Expanded Scope of Gas Gathering Line Regulations--Sec. 192.8 D. Safety Requirements for Newly Regulated Gas Gathering Lines-- Sec. Sec. 192.9, 192.13, 192.18, 192.452, and 192.619 IV. Section-By-Section Analysis V. Availability of Standards Incorporated-by-Reference VI. Regulatory Analysis and Notices I. Executive Summary A. Purpose of the Final Rule This final rule responds to Government Accountability Office (GAO) recommendations and a Congressional mandate by extending existing design, operational and maintenance, and reporting requirements under the Federal Pipeline Safety Regulations to onshore natural gas gathering pipelines (``gathering lines'') in rural areas. Increasingly, many of these gathering lines have design and operating parameters that are similar to natural gas transmission lines (``transmission lines''), which pose an increased risk to public safety and the environment. PHMSA expects the regulatory amendments in this final rule will reduce the frequency and consequences of failures of onshore gas gathering lines and in turn reduce the likelihood of gas-related releases and incidents. The requirements in the final rule are designed to prevent and detect threats to pipeline integrity, improve public awareness of pipeline safety, and improve emergency response to pipeline incidents. PHMSA expects this final rule, therefore, will (1) improve public safety; (2) reduce threats to the physical environment (including, but not limited to, greenhouse gas emissions released during natural gas gathering line incidents); and (3) promote environmental justice for minority populations, low-income populations, and other underserved and disadvantaged communities. Gas gathering lines are pipelines used to transport natural gas from a current production facility to a transmission line or distribution main lines (``main lines''). Generally, these pipelines are used to collect unprocessed gas from production facilities for transport to a gas treatment plant or other facility. From there, the natural gas is separated from petroleum liquids, water, and other impurities to prepare the gas for further transportation and sale. In the Federal Pipeline Safety Regulations (49 Code of Federal Regulations (CFR) parts 190 through 199), gas gathering lines are distinct from gas transmission pipelines which are defined in Sec. 192.3 as pipelines that: (1) Transport gas from a gathering line or storage facility to a distribution center, storage facility, or large volume customer that is not downstream from a distribution center; (2) operate at a hoop stress of 20 percent or more of specified minimum yield strength (SMYS); \1\ or (3) transport gas within a storage field. --------------------------------------------------------------------------- \1\ SMYS is defined in Sec. 192.3 and refers to the minimum force required to deform permanently the material as specified in the applicable design codes. --------------------------------------------------------------------------- Section 192.5 divides gas transmission and gathering lines into class locations based on the number of dwellings near the pipeline. These range from rural Class 1 to densely populated Class 4 locations. Class locations are defined in Sec. 192.5. A Class 1 location is an offshore pipeline or an onshore pipeline that has 10 or fewer buildings intended for human occupancy within a 1-mile-long class-location unit. Unlike transmission lines, which are regulated regardless of location, gathering lines in rural Class 1 locations are exempt from Federal pipeline safety and reporting regulations in parts 191 and 192. However, PHMSA has authority under 49 U.S.C. 60102(a)(2) to issue safety regulations for pipeline transportation and pipeline facilities, including non-rural gathering lines and rural gathering lines designated by the Secretary as ``regulated gathering lines'' under 49 U.S.C. 60101(a)(21) and (b). Section 60117(b)(2) also authorizes DOT to require owners and operators of gathering lines, including rural gathering lines that have not been defined as regulated gathering lines, to submit information pertinent to its ability to make a determination as to whether and to what extent to regulate gathering lines. Prior to 2005, U.S. gas production had been stagnant since a peak in the early 1970s.\2\ The gathering lines that received gas from conventional wells typically had smaller diameters than gas transmission lines and operated at lower pressures. All else equal, a smaller diameter and lower pressure pipeline will release less gas and energy during an incident compared with a larger diameter pipeline with a greater operating pressure, such as a major transmission line. As a result, gathering lines located in Class 1 locations were [[Page 63267]] thought to pose relatively low risk to the public and the environment; therefore, gathering lines in Class 1 locations were exempt from reporting and safety requirements in the Federal Pipeline Safety Regulations. On the other hand, to account for the risks related to their physical, functional, and operational characteristics, transmission pipelines have been subject to PHMSA regulations regardless of their location. --------------------------------------------------------------------------- \2\ See U.S. Energy Information Administration (EIA), ``Natural Gas Explained--U.S. natural gas consumption, dry production, and net imports, 1950-2019,'' https://www.eia.gov/energyexplained/natural-gas/where-our-natural-gas-comes-from.php (accessed Nov. 3, 2020). --------------------------------------------------------------------------- Regardless of their size, regulated gathering lines are required to comply with safety reporting requirements and minimum safety standards in parts 191 and 192. Section 192.8(b) currently provides for two categories of regulated onshore gathering lines. Type A gathering lines are located in Class 2, Class 3, or Class 4 locations (see Sec. 192.5) that operate at relatively higher stress levels. Section 192.9(c) subjects Type A regulated gathering lines to the same requirements as gas transmission pipelines, with a few exceptions, due to the high potential consequences of an incident on a high-stress pipeline in a populated area. Type B gathering lines are lower-stress pipelines in Class 3, Class 4, and certain Class 2 locations. Section 192.9(d) subjects Type B to a less comprehensive set of requirements since such pipelines operate at lower stress levels than transmission pipelines. As stated above, gathering lines in Class 1 locations are excluded from the reporting and safety standards contained in parts 191 and 192. In a 2006 final rule, PHMSA determined that the potential consequences of a release of a smaller-diameter pipeline with a lower maximum allowable operating pressure (``MAOP''), in a sparsely populated area, would be minimal.\3\ --------------------------------------------------------------------------- \3\ Gas Gathering Line Definition; Alternative Definition for Onshore Lines and New Safety Standards, 71 FR 13289, 13291 (Mar. 15, 2006). --------------------------------------------------------------------------- Due to new drilling technologies and changing demand factors, domestic gas production has been surging since approximately 2006.\4\ Besides larger overall production volumes, new drilling technologies have also greatly increased the volume of gas that can be extracted from a single production site.\5\ As a result, the volume of gas transported by gathering lines have also increased significantly. In order to transport this additional volume, some gas gathering lines are now constructed with large-diameter pipe and operating pressures comparable to large, interstate gas transmission pipelines. For example, the National Association of State Pipeline Safety Representatives (NAPSR) \6\ Resolution 2010-2 AC-2 notes that members have observed rural gathering lines as large as 30 inches in diameter with a MAOP as high as 1480 psi.\7\ The potential safety and environmental consequences of a gas pipeline rupture are proportional to the pipeline's diameter and operating pressure. Large diameter gathering lines are still exempt from the requirements in parts 191 and 192 if they are located in Class 1 locations despite their physical and functional similarities with transmission pipelines and their increased potential for adverse consequences in the event of incident. --------------------------------------------------------------------------- \4\ EIA, ``U.S. Natural Gas Marketed Production,'' https://www.eia.gov/dnav/ng/hist/n9050us2a.htm . (accessed Nov. 9, 2020). \5\ EIA, ``Hydraulically fractured horizontal wells account for most new oil and natural gas wells,'' https://www.eia.gov/todayinenergy/detail.php?id=34732 (Jan. 30, 2018). \6\ NAPSR is a nonprofit association of State pipeline safety officials. \7\ Available on the NAPSR website at http://www.napsr.org/resolutions.html . --------------------------------------------------------------------------- Large diameter, high-pressure gathering lines are susceptible to the same types of integrity threats as transmission pipelines, including corrosion, excavation damage, and construction defects. The exemption of these pipelines from the safety requirements of the Federal Pipeline Safety Regulations failed to consider the present risks that now exist. In addition, PHMSA has lacked detailed information on the safety of gas gathering lines in Class 1 locations because such lines have been exempted from requirements to submit incident and annual reports under part 191. These reports are necessary for PHMSA to analyze how recent changes in the gas production and midstream industries affect the functional and operational characteristics of unregulated gathering lines, and the safety consequences of those changes. While more comprehensive information is being collected and analyzed, expanded regulatory measures are needed to protect the human and natural environment from the consequences of incidents on large-diameter, high-pressure gathering lines from preventable causes such as corrosion, excavation damage, and inadequate design and construction practices. On August 25, 2011, PHMSA issued an advance notice of proposed rulemaking (ANPRM) that, among other things, requested comments with respect to improving the regulation of gas gathering lines.\8\ Following the ANPRM's publication, the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (2011 Pipeline Safety Act, Pub. L. 112-90) was enacted on January 3, 2012. Section 21 of the 2011 Pipeline Safety Act mandated that DOT review existing regulations for gathering lines and report to Congress on the sufficiency of existing Federal and State laws and the need to modify or revoke existing exemptions from Federal regulation for gathering lines. --------------------------------------------------------------------------- \8\ Pipeline Safety: Safety of Gas Transmission Pipelines, 76 FR 53086. --------------------------------------------------------------------------- Subsequently, in 2012, the GAO issued recommendation GAO-12-388 for PHMSA to collect data on Federally unregulated hazardous liquid and gas gathering lines.\9\ In August 2014, GAO issued recommendation 14-667 for PHMSA to ``move forward with rulemaking to address gathering pipeline safety that addresses the risks of larger-diameter, higher- pressure gathering pipelines, including subjecting such pipelines to emergency response planning requirements that currently do not apply to gathering pipelines.'' \10\ --------------------------------------------------------------------------- \9\ GAO, No. 12-388, ``Pipeline Safety: Collecting Data and Sharing Information on Federally Unregulated Gathering Pipelines Could Help Enhance Safety'' (Mar. 22, 2012). \10\ GAO, No. 14-667, ``Oil and Gas Transportation: Department of Transportation Is Taking Actions to Address Rail Safety, but Additional Actions Are Needed to Improve Pipeline Safety'' at 48 (Aug. 2014). --------------------------------------------------------------------------- On April 8, 2016, PHMSA issued a notice of proposed rulemaking (NPRM) responding to comments received on the ANPRM and proposing to further regulate gas gathering lines to enhance safety.\11\ This final rule addresses only those portions of the NPRM dealing with gas gathering lines. Portions of the NPRM dealing with gas transmission issues have already been implemented in the final rule, ``Pipeline Safety: Safety of Gas Transmission Pipelines: MAOP Reconfirmation, Expansion of Assessment Requirements, and Other Related Amendments,'' (``Gas Transmission Final Rule'') published on October 1, 2019.\12\ The remaining gas transmission issues will be addressed in the future in a separate rulemaking under the Regulatory Identifier Number (RIN) 2137- AF39, titled ``Pipeline Safety: Safety of Gas Transmission Pipelines, Repair Criteria, Integrity Management Improvements, Cathodic Protection, Management of Change, and Other Related Amendments.'' --------------------------------------------------------------------------- \11\ Pipeline Safety: Safety of Gas Transmission and Gathering Pipelines, 81 FR 20722. \12\ 84 FR 52180. --------------------------------------------------------------------------- The NPRM discussed the Congressional mandate and GAO recommendations, as well as the increased risk factors regarding gathering lines discussed above. In addition, the NPRM explained the need to clarify the definitions of gas gathering lines in Sec. Sec. 192.3 and 192.8, which rely on American Petroleum Institute (API) Recommended Practice (RP) 80, [[Page 63268]] ``Guidelines for the Definition of Onshore Gas Gathering Lines,'' first edition, April 2000. The current definitions are unclear with respect to each of (1) the point at which a non-jurisdictional production operation ends and a potentially regulated gas gathering line begins and (2) the use of the incidental gathering designation, which allows an operator to designate lines downstream from any gathering function defined in API RP 80 as a gathering line rather than as a transmission line. A summary of the proposed changes and PHMSA's response to the comments on the NPRM are provided below in section III of this final rule. On December 28, 2020, the Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020 (2020 PIPES Act, Pub. L. 116-260) was enacted. Section 112(a) directed PHMSA to issue a final rule in this rulemaking by March 27, 2021. B. Summary of the Major Provisions of the Final Rule This final rule addresses reporting and safety requirements for onshore gas gathering lines; offshore gas gathering lines are beyond the scope of this rulemaking.\13\ The final rule requires operators of all onshore gas gathering lines to report incidents and file annual reports under part 191. The purpose of this expanded reporting obligation is to gather data about the state of gas gathering infrastructure and monitor the safety performance of gas gathering lines that were previously exempt from Federal reporting requirements. The information in the reports will help determine the need for future regulatory changes to address the risks to the public, property, and the environment posed by all types of pipeline systems engaged in the transportation of gas. --------------------------------------------------------------------------- \13\ References in this final rule to ``gathering'' therefore refer, unless specified otherwise, to onshore gas gathering pipelines. Similar to Type A onshore gas gathering lines, offshore gas gathering lines are already covered by the requirements in part 192 applicable to transmission lines, with some exceptions listed in Sec. 192.9(b). --------------------------------------------------------------------------- In addition, the final rule provides for a new Type C regulated gathering line \14\ in Sec. 192.8. Type C gathering lines are defined as gas gathering lines in Class 1 locations that have outer diameters of 8.625 inches or greater and operate at higher stress levels or pressures. The safety requirements for Type C lines, referred to as Type C requirements in the final rule, are specified in revised Sec. 192.9(e) and vary based on the outer diameter of the pipeline and the potential consequences of a failure. The potential consequences of incidents are greater on larger-diameter, higher-pressure pipelines and pipelines that are located near buildings intended for human occupancy. Type C gathering lines with an outside diameter greater than 16 inches and certain other Type C gathering lines that could directly affect homes and other structures are required to comply with (1) existing requirements for Type B gas gathering lines, and (2) requirements at Sec. 192.615 that operators develop and implement emergency plans. Type C gathering lines with smaller diameters or that could not directly affect homes and other structures have fewer requirements that are limited to damage prevention, emergency plans, and public awareness. These requirements address known causes of pipeline failures including excavation damage, corrosion, and inadequate design and construction standards. --------------------------------------------------------------------------- \14\ This final rule and amended regulatory text use the formulation ``Type C'' to identify the newly-regulated onshore gathering lines described in the NPRM as ``Type A, Area 2.'' However, in discussion of the NPRM and comments thereon, this final rule will use the formulation ``Type A, Area 2'' for the convenience of the reader. --------------------------------------------------------------------------- C. Costs and Benefits Consistent with 49 U.S.C. 60102(b) and Executive Order 12866 (``Regulatory Planning and Review''),\15\ PHMSA has prepared an assessment of the benefits (including safety and environmental benefits) and costs of the final rule as well as reasonable alternatives. PHMSA expects benefits of the final rule to consist of improved safety and avoided environmental harms (including methane emissions) from reduction of the frequency and consequences of failures of onshore natural gas gathering lines that could result in releases and incidents. PHMSA estimates the annualized costs of the rule to be approximately $13.7 million per year at a 7-percent discount rate. The Regulatory Impact Analysis (RIA) for this final rule is available in the docket. The table below provides a summary of the estimated costs for the major provisions in this rulemaking and in total (see the RIA for further detail on these estimates). --------------------------------------------------------------------------- \15\ 58 FR 51375 (Oct. 4, 1993). ------------------------------------------------------------------------ Estimated annualized cost Provision (7%) ------------------------------------------------------------------------ Right-of-Way Surveillance................. $170,087. Corrosion Control......................... $2,043,260. Damage Prevention......................... $285,011. Public Awareness.......................... $550,464. Line Markers.............................. $1,680,870. Emergency Plan............................ $312,167. Leakage Surveys........................... $7,626,075. Incident reporting........................ $134,556. Annual reporting.......................... $943,408. Construction.............................. Negligible. ----------------------------- Total................................... $13,745,898. ------------------------------------------------------------------------ II. Background A. Detailed Overview Introduction The Pipeline Safety Regulations divide gas transmission and gathering lines into classes from Class 1 (rural areas) to Class 4 (densely populated, high-rise areas) that are based on the number of buildings or dwellings for human occupancy in the area. Class locations are defined in Sec. 192.5. A Class 1 location is an offshore pipeline or an onshore pipeline that has 10 or fewer buildings intended for human occupancy within a 1-mile-long class-location unit. This final rule addresses only onshore gas gathering lines. Gas gathering lines located in Class 2, Class 3, and Class 4 locations have been subject to reporting requirements in part 191 and safety requirements in part 192. Type A lines, which operate at higher pressure, are required to comply with most safety requirements applicable to transmission pipelines at part 192, while lower-pressure Type B lines are required to follow fewer requirements, which are listed in Sec. 192.9(d). When PHMSA last issued regulations addressing the safety of gas gathering lines in 2006,\16\ it exempted gathering lines in Class 1 locations from reporting and safety requirements in parts 191 and 192. At the time, such pipelines were mostly small-diameter, low-pressure pipelines located in sparsely populated, traditional oil-producing regions and were thought to pose relatively low risks to the public. However, by the time that the 2006 final rule was adopted, innovative drilling technologies, new hydrocarbon discoveries, and increasing demand for natural gas were starting to transform the industry. Highly productive ``unconventional'' drilling techniques have proliferated, and modern production sites can be several times more productive than conventional wells. The characteristics of the gathering lines servicing current wells often have more in common with large interstate transmission systems than the diffuse network of small gathering lines that predominated when the current gas [[Page 63269]] gathering regulatory framework was being developed prior to 2006. These changes are placing unprecedented demands and increasing safety risks on the Nation's pipeline system. --------------------------------------------------------------------------- \16\ Gas Gathering Line Definition; Alternative Definition for Onshore Lines and New Safety Standards, 71 FR 13289 (Mar. 15, 2006). --------------------------------------------------------------------------- The final rule requires operators of all onshore gas gathering lines to prepare and submit annual reports with information about their gas gathering lines and to submit incident reports under part 191. The information is necessary to monitor the safety performance of gas gathering systems and inform the appropriate level of regulatory oversight. This final rule also adopts new safety requirements for larger-diameter (i.e., with outer diameters of 8.625 inches or greater), higher-operating pressure gas gathering lines to mitigate risks to public safety and pipeline integrity. The need to implement risk-based protections and build an understanding of the safety of gas gathering systems is critical since ``unconventional'' production operations continue to expand, often into regions inexperienced with oil and gas development--posing new risks to humans and the environment. Natural Gas Gathering Infrastructure Overview The U.S. natural gas pipeline network is designed to transport natural gas to and from most locations in the country. Approximately two-thirds of the lower 48 States depend almost entirely on the interstate transmission pipeline system for their supplies of natural gas.\17\ In 49 CFR part 192, pipelines are classified into three broad groups, based on their function and characteristics: Gathering, transmission, and distribution systems. Onshore gathering lines, the sole subject of this final rule, typically transport gas from production fields to gas transmission pipelines or centralized processing and storage facilities. From there, gas is typically transported to large industrial users such as gas-fired power stations or local distribution companies via transmission pipelines. Finally, distribution companies deliver gas to homes and businesses, and other end-users. Together, these systems form an interconnected network that transports natural gas from the production field to its end users. PHMSA estimates that there are over 400,000 miles of onshore gas gathering lines throughout the U.S., the vast majority of which are in Class 1 locations.\18\ --------------------------------------------------------------------------- \17\ U.S. Department of Energy (DOE), ``Appendix B: Natural Gas--Quadrennial Energy Review Report: Energy Transmission, Storage, and Distribution Infrastructure'' p. NG-28 (Apr. 2015). \18\ API estimated there were 240,000 miles of unregulated gathering lines in comments submitted October 23, 2012, available in the docket. In order to project an estimate of gathering lines in service today, PHMSA adjusted this estimate based on average rate of increase in reported mileage of regulated gathering lines from operators' annual reports since 2012. See the RIA, available in the docket, for additional information on estimates of gathering miles affected by the rule. --------------------------------------------------------------------------- Regulatory History The Natural Gas Pipeline Safety Act of 1968 (Pub. L. 90-481) vested the Secretary with statutory authority to issue regulations to ensure the safe transportation of natural gas by pipeline but excluded the regulation of gas gathering lines in rural areas, which were defined in section 2(3) of the 1968 Act as those locations outside the limits of any incorporated or unincorporated city, town, or village, or other designated residential or commercial area. Later, Congress modified the definition of ``transporting gas'' to provide Secretary the authority to designate non-rural areas in order to make pipelines in those non- rural areas subject to PHMSA's jurisdiction (49 U.S.C. 60101(a)(21)(B)). PHMSA,\19\ through delegation by the Secretary,\20\ and its State partners enforce requirements for regulated \21\ gas gathering systems in the Federal Pipeline Safety Regulations that are authorized under 49 U.S.C. 60101 et seq. DOT issued interim minimum Federal safety standard regulations for gas pipeline facilities and the transportation of natural and other gas by pipeline on November 13, 1968,\22\ and subsequently codified broad-based gas pipeline regulations in 49 CFR part 192 on August 19, 1970.\23\ The 1970 final rule defined a ``gathering line'' as ``a pipeline that transports gas from a current production facility to a transmission line or main,'' and subjected all gathering lines located in non-rural areas (e.g., within the limits of any incorporated or unincorporated city, town, or village, or other designated residential or commercial area) to all requirements applicable to transmission pipelines (Sec. Sec. 192.1 and 192.9). --------------------------------------------------------------------------- \19\ PHMSA's predecessor agencies include the Research and Special Programs Administration (RSPA), the Materials Transportation Bureau (MTB), and the Office of Pipeline Safety (OPS). For simplicity, all are referred to as DOT in this section. \20\ 49 CFR 1.97. \21\ Typically, onshore pipelines involved in the ``transportation of gas,'' see 49 CFR 192.1 and 192.3 for detailed applicability. \22\ Interim Minimum Federal Safety Standards for the Transportation of Natural and Other Gas by Pipeline, 33 FR 16500. \23\ Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards, 35 FR 13248. --------------------------------------------------------------------------- This historical approach to defining PHMSA's jurisdiction, however, has left several key gaps which made it difficult to determine where a gathering line started and ended. One was that it failed to define ``current production facility,'' and therefore the point where a non- jurisdictional production facility became a gathering line was not clear.\24\ Additionally, there was no clear definition of where a gathering line ended, and a transmission pipeline or distribution main line began. The DOT has attempted to clarify these gaps several times. In 1974, DOT proposed to revise the definition of a gas ``gathering line'' to address this uncertainty as to the beginning and end points of gas gathering.\25\ However, the proposal was later withdrawn.\26\ --------------------------------------------------------------------------- \24\ Transportation of Natural and Other Gas by Pipeline: Proposed Definition of Gathering Line, 39 FR 34569 (Sept. 26, 1974). \25\ Id. \26\ Transportation of Natural and Other Gas by Pipeline: Withdrawal of Proposed Definition of Gathering Line, 43 FR 42773 (Sept. 21, 1978). --------------------------------------------------------------------------- In 1991, DOT again proposed to revise the definition of a gathering line following a NAPSR survey of its members noting ongoing disagreements about the classification of certain segments of gas pipelines.\27\ However, in response to comments on the proposed rule and the issuance of the Pipeline Safety Act of 1992 (Pub. L. 102-508), PHMSA delayed final action on that proposal to consider additional information and the statutory changes. As described earlier, PHMSA was previously restricted from issuing regulations for rural gathering lines. Section 109 of The Pipeline Safety Act of 1992 expanded DOT's authority by authorizing the Secretary to define the term ``regulated gathering line,'' and issue safety regulations for the transportation of gas through those pipelines despite their location in rural areas (49 U.S.C. 60101(b)). The Pipeline Safety Act of 1992 also directed DOT to consider functional and operational characteristics in defining gathering lines (49 U.S.C. 60101(b)(1)(B)(i)). For the definition of the term ``regulated gathering line,'' Congress further directed DOT to consider such factors as location, length of line from the well site, operating pressure, throughput, and gas composition in deciding which gathering lines are functionally gathering yet warrant regulation as regulated gathering lines (49 U.S.C. 60101(b)(2)(A)). This authority also expressly allowed DOT to depart from the concepts used to define gathering for the purposes of determining the scope of the Federal Energy Regulatory [[Page 63270]] Commission's (FERC) authority under the Natural Gas Act (15 U.S.C. 717 et seq.) in order to define gas gathering lines based on functional, rather than rate-setting, considerations. In other words, whether the DOT classifies a pipeline as a transmission line, gathering line, or regulated gathering line has no impact on the pipeline's status with FERC and vice-versa. --------------------------------------------------------------------------- \27\ Gas Gathering Line Definition: Notice of Proposed Rulemaking, 56 FR 48505 (Sept. 25, 1991). --------------------------------------------------------------------------- In 1999, PHMSA renewed the effort to define gathering lines. To facilitate this project, PHMSA opened a website for public discussion on the question of how to define gas gathering lines and whether there was a need to subject rural gathering lines to Federal safety oversight.\28\ The majority of the comments received focused on the work that was being done by API to classify gathering lines. That effort culminated in the publication of the first edition of API RP 80 in April 2000. --------------------------------------------------------------------------- \28\ Request for Comments: Gas Gathering Line Definition, 64 FR 12147 (Mar. 11, 1999). --------------------------------------------------------------------------- The purpose of API RP 80 is to define gas gathering lines in onshore areas based on the line's function. It distinguishes a gathering function from a ``production operation'' that is not engaged in transportation (see section 2.3 of API RP 80) and defines a number of points that determine the potential endpoint of the gathering function (see section 2.2(a)(1)(A) through (a)(1)(D) of API RP 80), such as the inlet to the furthermost downstream gas processing plant or the furthermost downstream point where gas produced in the same production field or separate production fields is commingled. API RP 80 defines a gathering line as ``a pipeline, or a connected series of pipelines, used to transport gas from the furthermost downstream point in a production operation to the furthermost downstream of one of the defined endpoints of gathering.'' The document also includes supplementary definitions, discussion, and diagrams to provide additional guidance on how operators may apply these definitions to various types of gathering systems. Section 192.8 includes limitations on how aspects of API RP 80 must be applied. Ever since API RP 80 was first issued, PHMSA has had concerns about ``incidental gathering.'' While section 2.2(a)(1)(A) through (a)(1)(D) describe points where the gathering function can end, paragraph (a)(1)(E) allows an operator to designate pipeline segments that are past the furthermost downstream of the other endpoint of gathering up to the connection to ``another pipeline'' (typically a transmission line) as a gathering line regardless of the actual function or operational characteristics of the pipeline itself. This is the ``incidental gathering'' concept discussed in API RP 80 section 2.2.1.2.6. By definition, these lines extend beyond the end of any gathering functions. When a major gas processing plant or a compressor used to raise the pressure for delivery into a transmission line is the endpoint, the incidental gathering line segment can be indistinguishable from a transmission line in terms of its function, diameter, pressure, and gas composition; yet is treated as a gathering line rather than a transmission line under part 192. Additionally, there are no limits on how far an incidental gathering line may extend under the API RP 80 definition. The API RP 80 concept of ``incidental gathering'' undermines the functional definition of ``gathering'' that API RP 80 was intended to establish. In fact, API RP 80 creates a regulatory gap for pipeline segments that bear the least functional and operational resemblance to gathering lines. In 2003, DOT held public meetings in Austin, Texas, and Anchorage, Alaska, to determine the best way to define the terms ``gas gathering line'' and ``regulated gathering line'' and what, if any, safety rules would be needed for rural regulated gathering lines.\29\ At the meetings, DOT proffered a ``sliding corridor'' concept as a possible basis for defining which gathering lines should be designated as regulated gathering lines. This concept was similar to the ``sliding mile'' used for class location determinations, except that the corridor would be 1,000 feet long rather than one mile, and the width would vary depending on the stress level of the segment of pipe. Wherever the corridor contained five or more dwellings, the gathering line segment would be subject to a subset of Federal Pipeline Safety Regulations, the scope of which would increase as the stress level \30\ of the segment increased. --------------------------------------------------------------------------- \29\ See 68 FR 62555 (Nov. 5, 2003) (Austin, TX, meeting) and 68 FR 67129 (Dec. 1, 2003) (Anchorage, AK, meeting). Transcripts for the meeting are available for download at regulations.gov under Docket No. PHMSA-RSPA-1998-4868. \30\ Expressed as the circumferential fore on a pipe (hoop stress) produced by the MAOP as a percent of the specified minimum yield strength (SMYS). SMYS is defined in Sec. 192.3 and refers to the minimum force required to deform permanently the material as specified in the applicable design codes. --------------------------------------------------------------------------- After these two meetings, DOT published a document that stated that the definitions of production and gathering should ensure that Federal regulation of gathering lines does not overlap with State regulations on production, and should promote consistent application by regulators and operators.\31\ The document invited comments on an appropriate approach for identifying rural gas gathering lines that warranted regulation. After the 2003 public meetings, DOT met several times with State agency officials, industry representatives, and others to obtain different views on the risks posed by gas gathering lines and the need for Federal regulation over the same. --------------------------------------------------------------------------- \31\ Gas and Hazardous Liquid Gathering Lines: Clarification of Rulemaking Intentions and Extension of Time for Comments, 69 FR 5305 (Feb. 4, 2004). --------------------------------------------------------------------------- In 2006, DOT published a final rule that established the current Federa
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