# Alaska Gasline Development Corp. - PI-15-0010

- **operation:** document
- **citation:** PHMSA Guidance, Alaska Gasline Development Corp. - PI-15-0010
- **title:** Alaska Gasline Development Corp. - PI-15-0010
- **source type:** guidance
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** guidance
- **official:** true
- **published on:** 2017-03-22
- **effective on:** 2017-03-22
- **summary:** Alaska Gasline Development Corp. - PI-15-0010 Document Alaska_LNG_PI_15_0010_03_22_2017_Part_192_327.pdf (3.48 MB) Interpretation of Part 192 as it applies to the cover requirement for a pipeline in Cook Inlet, Alaska. Issued Date: Wednesday, March 22, 2017
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- **source url:** https://www.phmsa.dot.gov/regulatory-compliance/phmsa-guidance/alaska-gasline-development-corp-pi-15-0010
**body:**

Alaska Gasline Development Corp. - PI-15-0010

Document

 Alaska_LNG_PI_15_0010_03_22_2017_Part_192_327.pdf (3.48 MB)

        Interpretation of Part 192 as it applies to the cover requirement for a pipeline in Cook Inlet, Alaska.

          Issued Date: Wednesday, March 22, 2017

<<<PAGE 1>>>

U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety
Administration
1200 New Jersey Avenue, SE
Washington, D.C. 20590
M AR Z Z 2017
Mr. Keith Meyer
President
Alaska Gasline Development Corporation
3201 C Street, Suite 200.
Anchorage AK 99503
Dear Mr. Meyer:
In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated
October 16, 2015, Exxon Mobil Alaska LNG (Exxon Mobil) requested a two-part interpretation
of 49 CFR 192.327(f)(2) to determine whether Exxon Mobil could use the cover requirement in
§ 192.327(f)(2) for a pipeline in Alaska's Cook Inlet. PHMSA. understands that Alaska Gasline ·
Development Corporation (Alaska Gasline) has purchased the project that was the subject of the
October 16, 2015, letter. This letter is being addressed to you as the new owner/developer.
Exxon Mobil stated in their letter that the Alaska LNG project is being developed to condition
Alaska North Slope natural gas and transport it to a tidewater port near Nikiski on the Cook Inlet
for liquefaction and loading to liquefied natural gas (LNG) marine vessels. The proposed project
facilities include a liquefaction facility on the eastern shore of Cook Inlet in the Nikiski area of
the Kenai Peninsula, which will be supplied by an approximately 1,287 km (800-mile ), large-
diameter natural gas pipeline from the North Slope. ·
PHMSA understands that Alaska Gasline is now leading the design and engineering of the
project facilities, including a large-diameter gas transmission pipeline that will cross the Cook
Inlet in Alaska. Exxon Mobil Alaska LNG sought confirmation that:
1. 2. The Cook Inlet is considered "Offshore" for purposes of49 CFR Part 192; and
Section 192.327(f)(2) details the cover requirements for the pipeline segment that crosses
the Cook Inlet.
In response to the first question, Exxon Mobil correctly notes that PHMSA has previously issued
an interpretation that the Cook Inlet waters are considered "Offshore." In a September 16, 1997,
letter of interpretation (#PI-97-010) to Mr. R.J. Redweik, Staff Environmental Engineer, Shell
Western E&P Inc., PHMSA stated:
The pipeline facilities are subject to Part 195 requiremeilts because, for purposes of the
pipeline safety regulations, we do not consider the facil!ties to be located onshore.
Although the pipeline safety regulations do not define onshore, offshore is defined in
§ 195 .3 as being "beyond the line of ordinary low water along that portion of the coast of
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations ( 49' CFR
Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts
presented by the person requesting the clarification. Interpretations do not create legally-enfo1 ceable rights or obligations and are provided to
help the public understand how to comply with the regulations.

<<<PAGE 2>>>

2
the United States that is in direct contact with the open seas and beyond the line marking
the seaward limit of inland waters." The facilities are located in the waters of Cook Inlet,
which average a depth of 100 feet, 35 foot tides, and 7 knot currents. Cook Inlet is in
direct contact with the open seas, as evidenced by tides and currents. Recent pipeline
safety legislation and regulations have focused on the potential hazards to navigation
posed by submerged pipeline facilities. Thus, our intent in delineating onshore from
offshore waters is to focus on waters where submerged pipeline facilities pose a risk to
the public and the environment. The pipeline facilities in Cook Inlet pose a safety hazard
to navigational traffic.
PHMSA had come to the same conclusion in an earlier May 19, 1997 letter of interpretation to
Mr. Redweik (#PI-97-010), noting that the Coast Guard-which shares similar concerns about
hazards to navigation - treats the Cook Inlet as "offshore" rather than "inland waters."
For the reasons stated above, PHMSA continues to classify the Cook Inlet as "Offshore."
PHMSA acknowledges that the May 19, 1997, and September 16, 1997, interpretations address
Part 195, not Part 192. However, neither Part defines the term "Onshore" and both include
identical definitions of the term "Offshore," and the 1997 interpretation therefore is fully
applicable to Part 192.1 For the reasons stated above, under the definition used in both Part 192
and Part 195, the Cook Inlet is "Offshore" - the inlet lies beyond the line of ordinary low water
along the portion of the coast of the United States that is in direct contact with the open seas, and
is beyond the line marking the seaward limit of inland waters.
Additionally, the conditions in the Cook Inlet are similar to open-sea operating conditions.
Recent measurements from three localities on the Cook Inlet: Nikiski, Alaska; Seldovia, Alaska;
and Tesoro Pier, Cook Inlet, Alaska, show that during September 2016, the Cook Inlet averaged
tides of 20 feet, winds of 5 knots, wind gusts that can reach above 20 knots, and currents in
excess of 5 knots.2 Therefore, pursuant to previous PHMSA letters of interpretations and the
current conditions in the Cook Inlet, the Cook Inlet waters are appropriately classified as
"Offshore."
1 Compare 49 CFR 192.3 with 49 CFR 195.2 ("Offshore means beyond the line of ordinaiy low water along that
portion of the coast of the United States that is in direct contact with the open seas and beyond the line marking the
seaward limit of inland waters.").
2 National Oceanic and Atmospheric Administration, Tides and Currents Map, State of Alaska - Nikiski Station,
· Alaska, and Seldovia Station, Alaska. Available at http://tidesandcurrents.noaa.gov/map/ (Site last visited
September 22, 2016); See also 2016 Current Tables, Western Alaska: Icy Bay to The Bearing Sea - Tesoro Pier,
Cook Inlet, Alaska. Pages 112-115. Approved by the United States Coast Guard.
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations
( 49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the
specific facts presented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and
are provided to help the public understand how to comply with the regulations.

<<<PAGE 3>>>

3
As to the second question whether cover requirements in§ 192.327(f)(2) apply to the pipeline
segment for the Alaska LNG project. Section 192.327 states, in relevant part:
§ 192.327 Cover.
(a) ...
(f) All pipe installed offshore, except in the Gulf of Mexico and its inlets, under
water not more than 200 feet ( 60 meters) deep, as measured from the mean low
tide, must be installed as follows:
(1) ...
(2) Pipe under water at least 12 feet (3.66 meters) deep must be installed so
that the top of the pipe is below the natural bottom, unless the pipe is supported by
stanchions, held in place by anchors or heavy concrete coating, or protected by an
equivalent means.
Per the interpretation #PI-97-010, the Cook Inlet waters average 100 feet in depth, which is less
than 200 feet; therefore, PHMSA's cover requirement in§ 192.327(f)(2) applies. Further, a
pipeline crossing Cook Inlet - whether installed below the natural bottom or supported by
stanchions, held in place by anchors or heavy concrete coating, as described by§ 192.327(f)(2)-
would also be required to meet all crossing and depth of cover requirements of any other agency
with permitting authority for navigable offshore waters, such as the U.S. Coast Guard and
U.S. Army Corp of Engineers.
I hope this interpretation has been helpful. If we can be of further assistance, please contact
Tewabe Asebe at 202-366-5523.
Sincerely,
Cameron H. Satterthwaite
Acting Director
Office of Standards and Rulemaking
cc: Mr. Rick Noecker
PHMSA Filing Coordinator
Alaska LNG Project
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations
(49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application ofthe regulations to the
specific facts presented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and
are provided to help the public understand how to comply with the regulations.

<<<PAGE 4>>>

Alaska L G
Alaska LNG Project
Pipeline Engineering
237 4th Ave SW
Calgary, AB T2P OH6
CANADA
16 October 2015
Mr. John A. Gale, Director
Office of Standards and Rulemaking (PHP-30)
PHMSA, U.S. Department of Tran~portation,
1200 New Jersey Avenue, SE ·
Washington, DC 20590-0001
USA
Re: Request for Interpretation of the cover requirements for the Cook Inlet pipeline
crossing and the applicability of 49 CFR §192.327(f)(2)
Dear Mr. Gale:
The Alaska LNG (AKLNG) Project is being developed to condition Alaska North Slope (ANS)
natural gas and transport it to a tidewater port near Nikiski on the Cook Inlet for liquefaction and
loading to liquefied natural gas (LNG) marine vessels. The project participants include the
Alaska Gasline Development Corporation (AGDC) and affiliates of Exxon Mobil, ConocoPhillips,
BP and TransCanada Pipelines. The proposed Project facilities include a Liquefaction Facility
on the eastern shore of Cook Inlet in the Nikiski area of the Kenai Peninsula, which will be
supplied by an approximately 1 ,287 -km (800-mi), large-diameter natural gas pipeline from the
North Slope. ·
Exxon Mobil Alaska LNG LLC (EMALL) is leading the design and engineering of the Project
facilities, including a large diameter gas transmission pipeline that will cross the Cook Inlet in
Alaska. EMALL is seeking confirmation that 1) the Cook Inlet is considered "Offshore" for the
purposes of CFR 192 and 2) that 49 CFR Part 192.327.(f)(2) details the cover requirements for
the pipeline segment that crosses the Cook Inlet.
Background
In response to Request for Interpretation Pl-97-100, PHMSA identified the Cook Inlet waters as
"Offshore" with the following statements:
"The lines in Cook Inlet are offshore ... "Offshore" means beyond the line of ordinary low
water along the portion of the coast of the United States that is in direct contact with the
open seas .and beyond the line f!larking the seaward limit of inland waters."

<<<PAGE 5>>>

"Cook Inlet waters are considered offshore as they are in direct contact with the open
sea and not categorized as ''inland waters'~ Inland waters are specifically established by
the US Coast Guard under 33 CFR 80.01." '
U.S. Coast Guard Title 33 CFR 80.01 goes on to state:
The regulations in this part establish the lines of demarcation delineating those waters
upon which mariners shall comply with the International Regulations for Preventing
Collisions at Sea, 1972 (72 COLREGS) and those water upon which mariners shall
comply with the Inland Navigation Rules.
The waters.inside of the lines are Inland Rules waters. The waters outside the lines are
COLREGS waters.
U.S. Coast Guard Title 33 CFR 80.1705 declares that:
The 72 COLREGS shall apply on all the sounds, bays, harbors, and inlets of Alaska.
For offshore pipelines, the requirements for cover are covered in 49 CFR 192.327(f)(2), which
states:
(f) All pipe installed offshore, except in the Gulf of Mexico and its inlets, under water not
more than 200 feet (60 meters) deep, as measured from the mean low tide, must be
installed as follows:
(2) Pipe under water at least 12 feet (3. 66 meters) deep must be installed so that
the top of the pipe is below the natural bottom, unless the pipe is supported by
stanchions, held in place by anchors or heavy concrete coating, or protected by
an equivalent means.
Request for Interpretation
Based on the foregoing, the Cook Inlet is considered Offshore in the context of PHMSA's
regulations per CFR 192. The Project pipeline as it crosses Cook Inlet, therefore, is an offshore
pipeline that is subject to the cover requirements of 49 CFR Part 192.327(f)(2). According to that
provision, the Cook Inlet crossing pipeline does not need to be buried so long as it is "supported
by stanchions, held in place by anchors or heavy concrete coating, or protected by an
equivalent means. EMALL respectfully requests PHMSA's confirmation of this interpretation.
· Thank you for your consideration of this request for interpretation. If you have any questions,
please contact me at 587-476-4891 or rick.noecker@exxonmobil.com.
Sincerely,
Rick Noecker
PHMSA Filing Coordinator
AKLNG Project, Pipeline Engineering
For and On Behalf of EMALL
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