{"operation":"document","citation":"PI-01-0113","title":"Montana Public Service Commission — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2001-06-25","effective_on":null,"summary":"PI-01-0113 response to Montana Public Service Commission concerning 192.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-01-0113.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-01-0113.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-01-0113","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2001/g01-06-25_Tierney_192.3-master_meter-nlmx.pdf","body":"<<<PAGE 1>>>\n\nPI-01-0113\nU.S. Department of Transportation\nResearch and Special Programs Administration\n400 Seventh St., S.W.\nWashington, D.C. 20590\nJune 25, 2001\nMr. G. Joel Tierney\nUtilities Engineer\nMontana Public Service Commission\n1701 Prospect Avenue\nHelena, MT 59620-2601\nDear Mr. Tierney:\nThis is in response to your letter of May 31, 2001, requesting an interpretation of the definition of\nMaster Meter System as it applies to the Anaconda Housing Authority (AHA).\nAHA claims that its pipeline system, which serves multifamily public housing, does not meet the definition\nof Master Meter System at 49 CFR § 191.3 because:\n1. AHA does not resell the natural gas. Rather, it pays the utilities itself and does not pass the cost on to the\ntenants.\n2. AHA meets the definition for the test of \"Total Tenant Rent\" in 24 CFR § 913.107 because it does not\npass on the cost of utilities to its tenants.\n3. AHA receives a subsidy for utilities from the Federal government and does not bill or receive payment\nfrom the tenants for utilities.\nWe disagree. The gas distribution lines downstream from the master meter are a Master Meter System that\nis subject to the federal gas pipeline safety regulations in 49 CFR Parts 191 and 192.\nThe AHA system meets the requirements for classification as a Master Meter System as defined in the\npipeline safety regulations at 49 CFR § 191.3:\n\"a pipeline system for distributing gas within, but not limited to, a definable area, such as a mobile\nhome park, housing project, or apartment complex, where the operator purchases metered gas\nfrom an outside source for resale through a gas distribution pipeline system. The gas distribution\npipeline system supplies the ultimate consumer who either purchases the gas directly through a\nmeter or by other means, such as by rents.\"\nFor purposes of determining whether the AHA gas distribution pipeline facilities are subject to regulation\nunder 49 CFR Parts 191 and 192, we need only determine that the facilities are pipeline facilities and that the gas is\nbeing delivered to tenants who either pay a gas bill directly or do so indirectly through rents.\nThere is no contention that the AHA facilities are not a pipeline facility. In this case, only the interior piping\nwithin the buildings, beyond the first penetration of each building wall is non-jurisdictional. And, the tenants are clearly\npaying a rent for the privilege of occupying a housing unit and receiving utilities, including gas. The fact that they are not\nbilled for the gas and that there are subsidies for utility costs from the government under Department of Housing and\n\n<<<PAGE 2>>>\n\nUrban Development (HUD) programs are not relevant to the determination that AHA's gas distribution system is subject\nto the pipeline safety regulations.\nTherefore, the AHA gas distribution system is a Master Meter System and is subject to the pipeline safety\nregulations at 49 CFR Parts 191 and 192.\nIf you need further assistance, please call me at (202) 366-4565.\nSincerely yours,\nRichard D. Huriaux, P.E.\nManager, Regulations\nOffice of Pipeline Safety\n\n<<<PAGE 3>>>\n\nMontana Public Service Commission\n1701 Prospect Avenue\nPO Box 202601\nHelena, MT 59620-2601\nMay 31, 2001\nMs. Stacey Gerard\nAssociate Administrator\nResearch and Special Programs Administration\nUS Dept. of Transportation, Office of Pipeline Safety\nRoom 7128\n400 Seventh St. SW\nWashington, DC 20590\nDear Stacey:\nEnclosed for your interpretation is a letter from the Anaconda Housing Authority in which Montana has identified\nas a Master Meter Operator under Title 49, CFR, Parts 191 and 192.\nWe feel that housing authorities fit the definition of a master meter; however, we may be interpreting the\ndefinition wrong.\nIf you have any questions, please contact me at 406-444-6181.\nSincerely,\nMontana Public service Commission\nG. Joel Tierney\nUtilities Engineer\nUtility Division\n\n<<<PAGE 4>>>\n\nKnight, Dahood, McLean & Everett\nPost Office Box 727\n113 East Third Street\nAnaconda, Montana 59711\nFebruary 14, 23001\nDennis Crawford\nProgram Manager\nUtility Division\nMontana Public Service Commission\n1701 Prospect Avenue\nP. 0. Box 202601\nHelena, Montana 59620-2601\nRe: Anaconda Housing Authority Dear Mr. Crawford:\nOur law firm represents the Anaconda Housing Authority. Recently we have been consulted in\nconnection with the Montana Public Service Commission's request that the Anaconda Housing Authority comply\nwith the Federal Natural Gas Pipeline Safety Act. Apparently the Montana Public Service Commission believes that\nthe Anaconda Housing Authority meets the definition of Master Meter System requiring compliance.\nThe Master Meter System is defined at 49 CFR Part 191:\nMeans pipeline systems for distributing gas within, but not limited\nto, definable area, such as a mobile home park, housing project, or\napartment complex, where the operator purchases metered gas\nfrom an outside source for resale through a gas distribution pipeline\nsystem. The gas distribution pipeline system supplies the ultimate\nconsumer who either purchases the gas directly through a meter or\nby other means such as by rent.\nThe Anaconda Housing Authority does not meet the definition of a Master Meter System for the\nfollowing reasons:\n1. The Anaconda Housing Authority does not resell the natural gas. The\nHousing Authority pays 100% of all tenants' utilities including their gas,\nelectric and water. The cost is never passed on to or paid by the tenant.\n2. The Anaconda Housing Authority meets the definition for the test of \"Total\nTenant Rent\" set forth in 24 CFR 913.107 because the Authority does not\npass on the cost of utilities to its tenants.\n3. The Anaconda Housing Authority is subsidized 100% for utility usage. That\nsubsidy comes from the Federal Government. The tenant never receives a\nbill or makes payment for the utilities.\nBecause the Anaconda Housing Authority does not meet the definition of operating a Master Meter\nSystem set forth in 49 CFR Part 191, the Anaconda Housing Authority is exempt from compliance with the Federal\nNatural Gas Pipeline Safety Act.\nI trust that this answers your questions. If I can be of further assistance, please do not hesitate to\ncontact me.\nSincerely,\nBERNARD J. \"BEN\" EVERETT","truncated":false,"body_characters":6208}