{"operation":"document","citation":"PI-03-0103","title":"Enron Pipeline Services Company — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2003-06-11","effective_on":null,"summary":"PI-03-0103 response to Enron Pipeline Services Company concerning 195.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-03-0103.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-03-0103.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-03-0103","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2003/g03-06-11_Johnson_195.1-wmx.pdf","body":"<<<PAGE 1>>>\n\nPI-03-0103\nU.S. Department of Transportation\nResearch and Special Programs Administration\n400 Seventh St., S.W.\nWashington, D.C. 20590\nJUN 11, 2003\nMr. David L. Johnson\nEnron Pipeline Services Company\nP.O. Box 188\nHouston, TX 77251-1188\nDear Mr. Johnson:\nThis is in response to your letter of June 18, 2002, in which you request an interpretation of the regulatory\nstatus of an EOTT Energy Pipeline Limited Partnership (EOTT) crude oil gathering pipeline system from Rhame Station in\nNorth Dakota to Baker Station in Montana.\nYou allege that this pipeline is non-regulated under 49 CFR 195.1(b)(4), which provides that Part 195,\nTransportation of Hazardous Liquids by Pipeline, does not apply to transportation of petroleum in onshore gathering\nlines in rural areas. \"Gathering line\" is defined at § 195.2, Definitions, as a pipeline of 8-5/8 inches or less nominal\noutside diameter that transports petroleum from a production facility.\nYou note that the EOTT pipeline has truck injection pipelines at Rhame Station and at one other location\nenroute to Baker Station, which you believe does not change the character of the downstream line from gathering. In\nsupport of this position you cite the preamble to Amendment 195-36 (effective August 20, 1986), which states that:\n[s]o long as the nominal pipe size remains 8 inches or less and the function of transporting petroleum from a\nproduction facility is maintained, an in-line surge tank, block valve, or other facility will not change the\ncharacter of the downstream line from gathering and [t]he only cause for a gathering line to terminate would\nbe upon connection with a non-pipeline facility (e.g., a refinery) or a pipeline larger than 8 inches in nominal\ndiameter.\nYou also cite a letter from James C. Thomas, Regional Director, Office of Pipeline Safety to Koch Industries (March 26,\n1997) that a lateral pipeline from a truck station does not change the status of a non-regulated gathering line.\nThe Office of Pipeline Safety agrees with your interpretation that the EOTT crude oil pipeline system from\nRhame Station in North Dakota to Baker Station in Montana is a non- regulated gathering line under § 195.1(b)(4)\nbecause it is less than 8 5/8 inches in nominal outside diameter, transports petroleum from a production facility, and is\nlocated in a rural area.\nIf you have any further questions about the pipeline safety regulations, please contact me at (202) 366-4565.\nSincerely,\nRichard D. Huriaux, P.E.\nManager, Regulations\nOffice of Pipeline Safety\n\n<<<PAGE 2>>>\n\nEnron Pipeline Service Company\nP.O. Box 1188\nHouston, Texas 77251-1188\nJune 18, 2002\nChris Hoidal, P.E.\nDirector, Western Region Office of Pipeline Safety 12600 West Colfax Avenue\nSuite A-250\nLakewood CO 80215\nDear Mr. Hoidal:\nThis letter is to clarify a jurisdictional question regarding an EOTT Energy Pipeline Limited Partnership (EOTT) crude oil\ngathering pipeline system from Rhame Station in North Dakota to Baker Station in Montana.\nEnron Pipeline Services Company (EPSC), the operator of the EOTT pipeline, determined that this pipeline system is a\nnon-jurisdictional pipeline per 49 CFR 195.1 (b)(4). Section 195.1(b)(4) provides that Part 195 does not apply to\ntransportation of petroleum in onshore gathering lines in rural areas. \"Gathering line\" is then further clearly defined in\nSection 195.2 as a pipeline of 8-5/8\" or less nominal outside diameter that transports petroleum from a petroleum\nfacility. This exactly describes the subject pipelines.\nThe pipeline system from Rhame Station to Baker Station consists of approximately 118 miles of 4\", 6\", and 8\" pipe in a\nrural area. Oil is gathered from production facilities to Rhame Station and is pumped to Baker Station. Also, pipeline-\ngathered oil from production facilities enters the gathering system at three other locations between Rhame Station and\nBaker Station.\nThe gathering system does have a truck injection pipeline at Rhame Station and at one other location before it gets to\nBaker Station, which per the preamble to Amendment 195-36, effective August 20, 1986, does not change the\ncharacter of the downstream line from gathering. In a reply to concerns of commenter’s, RSPA stated the following:\n\"So long as the nominal pipe size remains 8 inches or less and the function of transporting petroleum from a\nproduction facility is maintained, an in-line surge tank, block valve, or other facility will not change the character\nof the downstream line from gathering.\"\nIt also states the following:\n\"The only cause for a gathering line to terminate would be upon connection with a non- pipeline facility (e.g., a\nrefinery) or a pipeline larger than 8 inches in nominal diameter.\"\nFurther, a letter from the Office of Pipeline Safety to Koch Industries, dated March 26, 1997, signed by James C.\nThomas, Regional Director, reaffirms that a non-regulated gathering line that has been interrupted by a lateral pipeline\nfrom a truck station does not change the character as a gathering line (see attached.)\nIn addition, 49 CFR 195.1(b)(3) provides that Part 195 does not apply to a low-stress crude oil pipeline that does not\ntransport HVL, is located in a rural area, and is located outside a waterway currently used for commercial navigation.\nThe pipeline from the truck-unloading header to the gathering line meets the above criteria and therefore would also\nbe a non-jurisdictional pipeline.\nDuring the past several years, through a change in ownership and a subsequent change in operation responsibility,\nthere has been no change in the function or character of this system. Therefore, there should be no change in its\njurisdictional status, and it remains outside the applicability of 49 CFR Part 195. I trust that this information is sufficient\nto clarify this matter and resolve any question you may have had. If you have additional questions, please contact\nRonny Davenport by phone at 713-345-1645 or by email at ronny.davenport@enron.com\nVery truly yours,\nDavid L. Johnson\nVice President, Pipeline Safety","truncated":false,"body_characters":6033}