{"operation":"document","citation":"PI-09-0002","title":"CDX Gas — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2009-07-14","effective_on":null,"summary":"PI-09-0002 response to CDX Gas concerning 192.8.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0002","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2009/PI-09-0002.pdf","body":"<<>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMateriais Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, D.C. 20590\nJUL 1 42009\nMr. Greg Schrab\nHSE Coordinator\nCDXGas\n14800 Landmark Blvd, Suite 400\nDallas, TX 75254\nDear Mr. Schrab:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nSeptember 19,2008, you requested an interpretation of the applicability of the Federal pipeline\nsafety regulations in 49 CFR Part 192 to your Slaytonville natural gas pipeline. You stated that\nthe Slaytonville line is an eight-mile line connecting Central Station, a gas processing and\ncompression facility, to the CenterPoint gas transmission pipeline. You explained that, contrary\nto a recent determination by the Arkansas Oil and Gas Commission that the Slayton ville line is a\ntransmission line, you believe that the Slaytonville line is an \"incidental gathering\" line under\nsection 2.2(a)(l)(E) of API RP 80 as incorporated in Part 192 and, therefore, unregulated since it\nis located entirely within a Class 1 area. You requested a final determination from PHMSA as to\nwhether the Slaytonville line is a regulated gas transmission line or a non-regulated incidental\ngathering line.\nPursuant to 49 U.S.C. 60101 et seq., PHMSA prescribes and enforces standards and regulations\nthat apply to the gathering, transmission, and distribution of gas by pipeline. A gathering line is\ndefined in 49 CFR § 192.3 as \"a pipeline that transports gas from a current production facility to\na transmission line or main.\" That same section defines a transmission line as \"a pipeline, other\nthan a gathering line, that: (1) Transports gas from a gathering line or storage facility to a\ndistribution center, storage facility, or large volume customer that is not downstream from a\ndistribution center; (2) operates at a hoop stress of 20 percent or more of SMYS; or (3) transports\ngas within a storage field.\"\nOn March 15, 2006, PHMSA issued a Final Rule that defined a \"regulated gathering line\" and\nset forth the requirements that apply to regulated gathering lines (71 FR 13289). The rule\nadopted API RP 80 with certain limitations. Section 192.8 now provides as follows:\n§ 192.8 determined?\nHow are onshore gathering lines and regulated onshore gathering lines\n(a) An operator must use API RP 80 (incorporated by reference, see § 192.7), to\ndetermine if an onshore pipeline (or part of a connected series of pipelines) is an\nonshore gathering line. The determination is subject to the limitations listed\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety. provides written clarification of the Regulations (49 CFR\nParts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts\npresented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and are provided to\nhelp the public understand how to comply with the regulations.\n\n<<>>\n\n2\nbelow. After making this determination, an operator must determine if the\nonshore gathering line is a regulated onshore gathering line under paragraph (b) of\nthis section.\n(1) The beginning of gathering, under section 2.2(a)(l) of API RP 80, may not\nextend beyond the furthermost downstream point in a production operation as\ndefined in section 2.3 of API RP 80. This furthermost downstream point does not\ninclude equipment that can be used in either production or transportation, such as\nseparators or dehydrators, unless that equipment is involved in the processes of\n\"production and preparation for transportation or delivery of hydrocarbon gas\"\nwithin the meaning of \"production operation.\"\n(2) The endpoint of gathering, under section 2.2(a)(I)(A) of API RP 80, may not\nextend beyond the first downstream natural gas processing plant, unless the\noperator can demonstrate, using sound engineering principles, that gathering\nextends to a further downstream plant.\n(3) If the endpoint of gathering, under section 2.2(a)(l)(C) of API RP 80, is\ndetermined by the commingling of gas from separate production fields, the fields\nmay not be more than 50 miles from each other, unless the Administrator finds a\nlonger separation distance is justified in a particular case (see 49 CFR § 190.9).\n(4) The endpoint of gathering, under section 2.2(a)(l)(D) of API RP 80, may not\nextend beyond the furthermost downstream compressor used to increase gathering\nline pressure for delivery to another pipeline.\nWhile you correctly point out that the rule did not expressly adopt a limitation on the fifth\npossible endpoint of gathering in section 2.2(a)(1 )(E) of API RP 80, PHMSA considers this to be\na drafting error that does not reflect PHMSA's intent. In the Supplemental Notice of Proposed\nRulemaking issued on October 3,2005, PHMSA expressed its intent to \"assure gathering line\ndeterminations do not stray significantly from PHMSA' s historic interpretations of gathering or\ndo not abuse the \"furthermost downstream\" concept.\" (70 FR 57540)\nHistorically PHMSA has not accepted the incidental gathering designation. Based on the\npressures at which these lines typically operate and the fact that they share maintenance and\ninspection needs with high pressure transmission lines, PHMSA has historically treated these\nlines as regulated transmission lines and did not intend to make any change in the rule. Indeed,\nthe intent of Congress in mandating the rulemaking was to bring additional pipeline mileage into\nthe regulations, not to deregulate lines.\nIn our experience, the majority of operators treat these lines as regulated transmission lines and\nPHMSA believes they will continue to do so. Although incidental gathering designations are\ncurrently permissible due to the drafting error and would apply to the Slaytonville line based on\nthe description you provided, PHMSA is currently considering whether a rule amendment should\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety, provides written clarification of the Regulations (49 CFR\nParts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts\npresented by the person requesting the clarification. Interpretations do not create legaIIy-enforceable rights or obligations and are provided to\nhelp the public understand how to comply with the regulations.\n\n<<>>\n\n3\nbe undertaken to correct the rule and propose adding a fifth limitation on API RP 80 which\nwould mean incidental gathering determinations are no longer permissible. Because PHMSA\nmay undertake such a rule amendment in the near future, operators should strongly consider\nkeeping incidental gathering designations to an absolute minimum and treating these lines as\nregulated transmission lines.\nIn addition, be advised that because an incidental gathering line is a single connecting line and\nnot a system oflines, by definition it is limited to the first tie-in downstream of the processing or\ncompression facility even if that connection does not extend all the way to the large diameter\ninterstate line.\nFinally, with respect to the beginning of gathering, the system maps you submitted as supporting\ndocumentation incorrectly depict CDX's production operations as extending to the Central\nStation. The relevant API RP 80 diagram (Fig. 2-6) clearly shows that gathering begins at the\nterminus of production and transports gas to the processing, compression location depicted by\nthe schematic. Proper application of the definition for production in API RP 80, section 2.3 and\nthe supplemental definitions in section 2.4 indicate that the production operations in the CDX\nsystem cease much further upstream, at least as far upstream as the facilities identified on the\nmap as \"PODS\". Further review of the equipment and processes would be necessary to make a\ndetermination of the exact endpoint of production and beginning of gathering.\nI hope that this information is helpful to you. If I can further assist you with this or any other\npipeline safety regulatory matter, please contact me at (202) 366-4046.\nSincerely,\n·.4~2Y\nsr~A.Gale\nI Director, Office of Regulations\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety, provides written clarification of the Regulations (49 CFR\nParts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts\npresented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and are provided to\nhelp the public understand how to comply with the regulations.\n\n<<>>\n\n14800 Landmark Blvd, Suite 400, Dallas, TX 75254\nPhone: 972-392-1880 Fax: 972-392-1881\nSeptember 19, 2008\nOffice of Pipeline Safety (PHP-30)\nPHMSA\nu.S. Department of Transportation\n1200 New Jersey Avenue, SE\nWashington, D.C. 20590-0001\nRE: CDX Gas, LLC Request for Written Regulatory Interpretation\nCDX Gas, LLC is requesting a written regulatory interpretation on one of its pipelines (the \"Slaytonville\nline\") relative to 49 CFR Part 192 Gas Gathering Line Definition; Alternative Definition for Onshore\nLines and New Safety Standards, Final Rule, Federal Register, Vol. 71, No. 50, March 15, 2006. CDX\nGas' determination, in accordance with the above-referenced regulation, is that the Slaytonville line is a\nnon-regulated Type A gathering line (see attached CDX Gas Arkoma Project determination document,\nsubmitted to the Arkansas Oil and Gas Commission [AOGC] and PHMSA Southwest Region during a\nmeeting on August 7, 2008). CDX is making this request as a result of the determination made by the\nAOGC- that the Slaytonville line is a transmission line (see attached September 4, 2008 letter).\nBefore summarizing CDX Gas' determination as a basis for requesting PHMSA's written regulatory\ninterpretation, CDX Gas would like to call out several points in the September 4, 2008 AOGC letter:\n• AOGC General Rule 0-17 and 49 CFR Part 192 regulations (paragraph #1): the AOGC\nState regulation D-17 has no bearing on the determination (it simply references 49 CFR 192),\nother than D-17 does give AOGC jurisdiction over all \"pipeline operator\" lines from the\nwellhead to the custody transfer meter (which effectively focuses on exploration and production\ncompany production and gathering lines), previously, the Arkansas Public Service Commission\nwas the only Arkansas State agency enforcing PHMSA regulations; the complete 3115/06 Federal\nRegister Final Rule, 49 CFR 192, and API RP-80 incorporated by reference are codified and do\nhave a bearing on the actual determination\n• Onshore Gas Gathering F AQs (paragraph #2): F AQs, referenced by AOGC, are examples to\nbe used as guidance in interpreting an actual rule or regulation-they are not part of or\nreferenced in the Federal Register Final Rule, 49 CFR 192, or API RP-80 as incorporated by\nreference, therefore these F AQs are not codified and do not have the force of regulations;\nspecifically, F AQ no. 5 referenced by the AOGC, was written and is apparently being interpreted\nin a way that contradicts the Federal Register Final Rule (specifically, definition of the fifth\npossible endpoint of gathering and \"incidental gathering\")\n• Incidental Gathering (paragraph #5): it has not \"been determined that while incidental\ngathering MAY NOT be limited\"; PHMSA DID NOT propose a limitation on the fifth possible\nendpoint of gathering in 49 CFR 192, therefore incidental gathering under section 2.2( a)( 1 )(E) of\nAPI RP-80 IS NOT limited by PHMSA as discussed in the 3/15/06 Federal Register Final Rule\n(p. 13292, #5) and incidental gathering IS NOT being used to \"circumvent a stated limitation\"\n\n<<>>\n\nPlease refer to the attached detennination document for the detailed basis for CDX Gas' detennination\nthat the Slaytonville line is a non-regulated Type A gathering line, not a transmission line. CDX Gas'\ndetennination, and this request for a written interpretation, is based primarily on p. 13292, #5 of the\n3/15/06 Federal Register Final Rule (p. 7 of the attached detennination document) and the referenced\nsection 2.2.1.2.6 in API RP-80 (p. 5 of the attached detennination document):\n• p. 13292, #5, Federal Register Final Rule: \"We did not propose a limitation on the fifth\npossible endpoint under section 2.2(a}(I)(E). This endpoint is the connection to another pipeline\ndownstream of the furthermost downstream endpoint under sections 2.2(a)(l)(A) through (D), or\nin the absence of such an endpoint, the furthermost downstream production operation.\" \"The\nendpoint applies to connecting lines described as 'incidental gathering' under section 2.2.1.2.6 of\nAPI RP-80. An example of a connecting line is a pipeline that runs from the outlet of a natural\ngas processing plant to a transmission line. PHMSA considers 'incidental gathering' to include\nonly lines that directly connect a transmission line to one of the endpoints (A) through (D), as\nlimited by this fmal rule. Lines that connect a transmission line to one of these endpoints by way\nof another facility are not considered 'incidental' gathering.\" (emphasis added)\n• Section 2.2.1.2.6, API RP-80: \"The pipeline moving the gas from the plant to another pipeline\nis termed 'incidental gathering'. The 'incidental gathering' resumes at the plant outlet and\ncontinues to the other pipeline connection. Incidental gathering may also occur when a\ncompressor is a potential endpoint\". From a functional standpoint, this section of incidental\ngathering line is no different from the rest of the gathering system. The definition, therefore,\nincludes recognition that gathering may continue downstream of the last endpoint identified by\nprocessing, treatment, commingling, or compression activities to the connection with another\npipeline. (emphasis added)\nAs illustrated in Figure 2-6 of section 2.2.1.2.6 of API RP-80, as referenced in the 3/15/06 Federal\nRegister Final Rule, CDX Gas' production operation ends at the outlet of the Central Station. The\nSlaytonville line then directly connects the Centerpoint transmission line to the Central Station, which\ncontains two possible endpoints of gathering (gas treatment and compression). Therefore, the\nSlaytonville line is a \"connecting\" \"incidental gathering\" line, with the endpoint of gathering being its\nconnection with the downstream Centerpoint transmission line.\nCDX Gas respectfully requests a written regulatory interpretation of its detennination that the\nSlaytonville line is a non-regulated, Type A gathering line, in response to the AOGC detennination that it\nis a transmission line. Please call me at (214) 242-1147 with any questions regarding this request.\nSincerely,\nHSE Coordinator\ncc:\nThomas B. Deal/Attorney, CDX Gas, LLC, 14800 Landmark Blvd., Suite 400, Dallas, TX 75254\nGary Looney/Assistant Director, Arkansas Oil and Gas Commission, EI Dorado Regional Office, 2215\nWest Hillsboro, EI Dorado, AR 71730\nPatrick Gaume/Staff Engineer, Office of Pipeline Safety Southwest Region, 8701 South Gessner, Suite\n1110, Houston, TX 77074\n\n<<>>\n\nARKANSAS OIL AND GAS COMMISSION\nDireetor's 0fIke:\n301 Natural Resourees Drive\nSuite 102\nLittle Rode. AR 72205\nPhone: (SOl) 683-5814\nFax: (SOl) 683-5818\nhttp://www.aogc.atate.ar.us\nMlke8eebe\nGovernor\nLawrence Bengal\nDirector\n£I Don4o ReaJoaal Oftke:\n1115 W .. HIIIIbero\n£I DeraIl., All 11730\nPIootIe: (170) ~H5\nFAX: (1'70) I62-IIt3\nFon SmiO JtecjouI 0fIIu;\n;uo, PIIocaiI Avuae\n,\"\" s.tG, All 7%903\nno.e: (479) 646-6611\nFAX: (m) ..... 7656\nSeptember 4, 2008\nMr. Greg Schrab\nCOX Gas, LLC\n5485 Beltline Road, Ste 190\nDallas, TX 75254-7672\nRe: Determination of Pipeline Status\nSiaytonville Pipeline\nSebastian County, AR\nDear Mr. Schrab,\nCommission staff conducted a review of the Hartford Pipeline System operated by COX\nGAS, LLC on May 12,2008 in an effort to affirm regulatory compliance with AOGC\nGeneral Rule 0-17 and the applicable regulations contained within 49CFR Part 192.\nDUring that review, I concluded that a portion of the pipeline system named as the\nSiaytonville pipeline may be a transmission line and verbally communicated same to\nyou. My conclusion was based upon the limitations set forth under Part 192.8 (a) (4).\nThe Siaytonville pipeline is identified as the portion of your system downstream of the\nfinal compressor station, which boost pressure and transports natural gas to another\npipeline at the custody transfer meter and is approximately eight (8) miles in length. In\nfurther discussion, you indicated that the other pipeline is a transmission line operated\nby Centerpoint Energy. Upon final review which included confirmation that the other\npipeline was indeed a transmission line and the Onshore Gas Gathering FAQs\npublished by PHMSA (specifically FAa no. 5), it was determined that the Siaytonville\nline should be regulated as a Transmission Pipeline.\nSubsequent emails and phone conversation ensued in which you expressed your\nopinion that the Siaytonville line was not a transmission line and at your request I\nagreed to discuss this matter with Mr. Patrick Gaume, PHMSA Liaison to AOGC.\nThose discussions ended with the same decision that the Siaytonville line should be\nregulated as a transmission line.\nCOMMISSION MEMBERS\nChad While. Chairman, Magnolia\nW. Frank Morledge, Vice-Chairman, Forrest City\nCharles Wohlford, Fort Smith • Bill Poynter. Texarkana\nMike Davis., Maanolia • Kenneth Williams. Jersey\nCarolyn Pollan, Fort Smith· William L Dawkins. Jr., Fort Smith\nJerry Ungley. Smackover\nAn cqll1l opportunity employer\n\n<<>>\n\nYour further disagreement in this matter resulted in a meeting at AOGC office in Little\nRock on August 7, 2008 to discuss this issue. Present were Mr. Bowen and you\nrepresenting CDX, Mr. Gaume and myself. You presented your opinion of the\nregulation and submitted both verbal and written arguments that were taken under\nsubmission for review by representatives of PHMSA.\nIt has been determined that while incidental gathering may not be limited. It is clear that\nin 192.8 (a) (4) a limitation has been placed on the endpoint of gathering and that\nincidental gathering can not be used to circumvent a stated limitation. Therefore the\nfact that the pipetine in question is downstream of the last compressor becomes the\nmain determinate and it is therefore a Transmission Line and shall be regulated\naccordingly.\nAny appeal of this determination should be filed in accordance with 49 CFR Part\n190.11. Should you desire to file an appeal, please submit a copy of any appeal\nrequest and aU supporting documentation to my attention at the EI Dorado Regional\nOffice.\nSincerely,\nz1 jJ\n~L i) ,<(}G,,\\/\nG\"a,.J D. Loon/y\nAssistant Director\nEI Dorado Regional Office\n\n<<>>\n\ncox Gas. LLC Arkoma Project: Determination of Jurisdictional Status of Pipelines\nProduction (CtnSrJl StatIon 1114 YpttrMn)\nBased on a site visit on May 12 and foIow-up communic:atiOns, the AOGC has agreed with COX Gas'\ndetermination that the system of COX Gas, LlC wells through the screw compressors -PODS- and the Central\nStation (Which includes separation, dehydration. and compression) in the Arkoma Project all meet the definition of\nproduction per 192.8 (1) and Sections 2.3 and 3.1.4 of APt RP 80. Therefore, production does not end until the\nouttet of the Central Station. Per AOGC Rule 0-17, COX Gas has submitted a map of these production facilities\n(as well as the SIaytonviIIe pipeline they deliver into) to AOGC per Rule 0-17.\nSlaytonyUtt Type A Gatbtrina Un! (Downttr!am of C!ntrJI Station)\nCOX Gas, LlC's $laytonville line (approximately 8 miles in length) transports gas from the end of production at the\nCentral Station to the connection with, and custody transfer to, the Centerpoint transmission line. Therefore, the\nStaytonvilte line functions as a gathering line. because it transports gas from a current production facility to a\ntransmission line. Based on their May 12 site visit and fo8ow-up communications, AOGC notified COX Gas that\nAOGC has determined that the $laytonville line is a transmission fine and wiD be under the jurisdiction of the\nAOOC. During a follow-up meeting with Gary LooneylAOGC on July 17. Mr. Looney again stated he has forwarded\nall communications to his PHMSA liaison, whose stance continues to be that Slaytonville is a transmission line.\nCOX Gas' determination remains that the Siaytonville line is a gathering line. The Staytonvllfe line operates at a\nhoop stress of >20% SMYS. so per 192.8 it is a Type A gathering line. It is not a regulated gathering pipeline per\n192.8 (b), because It does not lie within a Class 2, 3 or 4 location. The $laytonville line lies within a Class 1\nlocation. because there are 10 or fewer buildings Intended for human occupancy within 220 yards on either side of\nthe centerline of any continuous 1-mile length of the pipeline (see details on class location below). COX Gas'\ndetermination remains the SlaytonvHle line does not meet the definition of a transmission line in 192.3:\n\"TransmIssion line means a pipeline. other than a gathering line. that (1) Transports gas from a gathermg Ime or\nstorage facility to 8 distribution center. storage faCility, or itffge volume customer that IS not down-stream from a\ndistrIbution center; (2} operates at hoop stress of 20 pen;enl or more of SMVS: or (3) transports gas Wlthm a\nstorage field •\nAs defined and described above. the SJaytonvilte line functions as a gathering. not a transmission line, because it\ntransports gas from a production facility (Centrat Station) to a transmission line (Centerpoint). it does not transport\ngas from a gathering line or storage facility to a distribution center, storage facitity, large votume customer, or within\na storage field.\nThe endpoint of gathering. and therefore the determInation of the Slaytonville line as a gathering. not transmission.\nline. can pethap$ best be illustrated using Figure 8--2 from API RP SO. In accordance with API RP 80 2.2 (a) as\nincorporated with limitations in 192.8 (a). the gathering function. including the end of gathering. of the Arkoma\nProject can best be represented by the decision tree Figure B-2 (attached). As described above. the Central\nStation is the furthermost downstream point in the Production Operation [2.2 (a) (1)J. and is also the location of the\nfurthermost downstream Gas Treatment Facility [2.2 (a) (1) (B)} and Gas Compression [2.2 (a) (1) (O)J. the outlet of\nwhich would be the possible end of gathering. except. the compressor delivers dlrect1y into the SlaytonviJle line.\nThe SiaytonviIte line transports and connects to the Centerpoint transmission line, not a distribution center, storage\nfacility, large volume customer. or within a storage fietd as described above. Therefore, the gathering function\nextends downstream to the point of connection with another pipeline [2.2(a)(1)(E)). and the furthermost downstream\npoint and end of gathering is the custody transfer connection with the Centerpoint transmission line.\nThe Slaytonville line may best be identifted as an -incidental gathering-line, as descrtbed in 49 CFR 192 Gas\nGathering line Definition; Alternative Definition for Onshore Unes and New Safety Standards, Final Rule (Federal\nRegister Vol. 71. No. 50, March 15. 2006; see attached pages):\n'Under section 2.2(e}(1}(DJ, the fourth possible endpoint IS the outlet of the furthermost downstream compressor\nstation used to lower gathering nne operating pressure to facilitate deliveries into the pipe/me from prodUCtion\noperations or to increase gatheting lme pressure for delivery mto another pipeline For conSIstency with our past\nInteq::,retations and current enforcement policy. we proposed to limit thiS endpoint to the outlet of a compressor\nused to deliver gas to another pIpe/me. ~ (/I A 5. page 13292J.\nI\n\n<<>>\n\n\"Base<1on this clanficaJion. we believe the term 'another plp(l/ine' in section 2 2(a)(1J(D} 01 API RP 80 does nor\nmean delivering to another gathenng line\" (IV 5 b .. page 13296)\n'We did not propose a limitation on the fifth pasS/bht endpoint under Section 2.2(aJ(1)(£:}. This endpoint is the\nconnection to another pIpeline downstream of the furthermost downstream endpoint under sectIOns 2. 2(a)(1 }(A)\nthrough (0), or In the absence of such an endpomt the furthermost downsnam production operation The\nendpoint applies to the connecting lines described as 'Incidental gathering. under SI1CtiOn 2.2. 1.2,6 of API RP 80\nAn example of a connecting line is a pipeline that rullS from the outlet of a natural gfJS processing plant to a\ntransmission fine. PHMSA c.onsk/fIrs 'incident\" fPlfheriltfl' to Include only lines tJutt directly connect 1*\ntransmission line to one of the endpoints (A) through (OJ. as limited by this final rule' (/I.A 5., page r 3292)\nPlease refer to Figure 2-6-tncidental Gathering Downstream of an Identified Endpoint in section 2.2.1.2.6 of APt\nRP 80 as referenoec:t in FlOat Rule 49 CFR 192. As described also using decision tree Figure B--2. the Central\nStation represents two possible endpoints of gathering Identified in Figure 2-6: the furthermost downstream gas\ntreatment facility [2.2 (a) (1) (8» and gas oompressor [2.2 (a) (1) (0»). The SlaytonviUe line directly connects the\nCenterpoint transmission line to !he Central Station. which contains these two possible endpoints of gathering.\nTherefore. the Siaytonvilie line can be identified as a ~connecting· -incidental gathering\" Ilne. with the endpoint of\ngathering being its connection with the downstream Centerpoint transmission line. However. as stated in API RP\n80. from a functional standpoint. there is no difference between incidental gathering and other gathering. so there is\nno impact on COX Gas' determination that the SIaytonviUe line is a non-regulated Type A gathering line.\nFrequently Asked Questions (FAas) are examples to be used as guidance in interpreting an actual rule or\nregulation-they are not part of the actual rule or regulation and therefore have no legal standing. Nonetheless,\nbecause AOGC initially referenced FAa #5 during their May 12 site visit and used it as the basis for their\ndetermination. FAa #5 (attached) is also used to further illustrate the COX Gas Siaytonville line case as described\nabove. Additionally. per API RP-80 (2.6.2.1 Physical Parameters) line length and pressure are not factors that can\nbe used to determine the actual function and therefore the designation of a pipeline; the Federal Register Final\nRule and 49 CFR 192 clearly describe that both Type A gathering and transmission lines operate at pressures\nresulting in a hoop stress of >20% SMYS. and line length is not used as a determining factor in the Final Rule or 49\nCFR 192. As another point of reference. the COX Gas Slaytonvifte line is not a FERC-regulated interstate or\nintrastate transmission pipeline (see attached narrative).\nc .... LocatIon of §laytonville Type A Gathtrina Uo..\nAs documented on our system map. and reviewed and discussed with Gary Looney/AOGC during our July 17\nmeeting. there are a total of fourteen houses within 220 yards on either side of the centerline of the SlaytonviUe\npipeline, along the approximately 8 mile line length from the Central Station to the custody transfer point at the\nCenterpoint Interconnect:\n• There are six houses within any continuous 1 mile of the Slaytonville line near its termination at the\nCentervDle Interconnect;\n• There are fIVe houses within any continuous 1 mile of the SlaytonvUIe line in the area where it crosses\nState Highway 252;\n• There are three houses within any continuous 1 mile going farther south of State Highway 252 along the\nSlaytonville pipeline (and including the southernmost house of the aforementioned group of fIVe houses).\n• Finally. there is one house within any continuous 1 mile of the Slaytonville line in the area on the west side\nof Gap Road, across from the T -interse<:tion of Gap Road with Diamondback Lane.\nTherefore, the SlaytonviJie Type A gathering line lies entirely in a Class 1 location [per 1925 (a) and (b){ 1}' ::10\nbulldlflgs Intended for human occupancy wlthm 220 yardS of its centerline atong any continUOUS 1-mlle lengthL SO it\nis a non-regulated Type A gathering line. Per 192.9 >>\n\nFERC Status of $laytonville Type A Gathering Un.\nAPI RP 80 (Section 2.2.2.4), as incorporated into 192. states: \"It was recognlzed that FERC or other agency\npipeline designations were not developed with pipeline safety as the regulatory purpose and as such may represent\nand include concepts and assumptions that are not relevant to Pipeline Safety Act objectives\". However. the\nreview of 49 U.S.C 60101.15 U.S.C. 717, and AQ8..08-01 befow show the inter.relationshlp between the definition\nof pipelines from a pipeline safety perspective-based on their functionaf and operational characteristics-and from a\nFERC or State PUC regulatory perspective.\nThe federal pipeline safety laws (49 U.S.C. 60101 et seq.) can for the definition of gathering lines as follows:\n60101 (b) Gathering LlIles.-{1 HAY Not later than October 24. 1994, the Secretary shall prescnbe standards defIning\nthe term .. gathering lineM\n•\n(8) In defining \"gathering line\" for gas. the Secretary--\n(I) Shall consider functional and operatiOnal characteristics of the hnes to be Included In the definition; and\n(Ii j IS nol bound by a ctasslflCabon the CommIssion establishes under the Natural Gas Act (15 USC 71 7 at\nseq )\nThe Natural Gas Act (15 U.S.C. 717 et seq.) defines the transportation and sale of natural gas to be regulated\nunderFERC:\n15 USC 717 (b) TransactIOns 10 whICh provIsions of chapter 3ppttCable\nThe provisions of this chapter shall apply to the transportation of natural gas .n mterstate commerce. 10 the sale\nIn Interstate commerce of natural gas for resale for ultImate publIC consumption for domestic, commercial,\nIndustrial, or any other use, and to natural...gas companies engaged In sucn transportatlon or sale and to the\nImportatIOn or exportation ot natural gas m foretgn commerce and (0 persons engaged 10 such Importahon Of\nexportation but shalt not apply to any other transportation or sale of natural gas or to the local drstnbuhon of\nnatural gas or to the facilities used for such distribution or to the production or gathering of natural gas.\nPHMSA has issued an Advisory Bulletin (A0B-08-01 - Direct Sales Pipelines Jurisdiction) stating that the Pipeline\nInspection, Protection. Enforcement, and Safety Act of 2006 (PIPES Act) eliminated the former exception of direct\nsales natural gas pipelines from the definition of an interstate gas pipeUne facility. The Federal pipeline safety laws\n(49 U.S.C. 60101 et seq.) define an \"interstate gas pipeline facility\" as a facility subject to the jurisdictiOn of the\nFERC under the Natural Gas Act (15 U.S.C. 717 et seq.). Section 7 of the PIPES Act changed this by eliminating\nthe exception of direct sales pipelines. As a result. direct sales gas transmission pipelines subject to FERC\njurisdiction formerly considered to be intrastate pipelines for purposes of the pipeline safety laws are now\nconsidered to be interstate pipelines. If the line has a State certification from the State Public Utility Commission\n(PUC) SUCh that the State PUC has regulatory jurisdictiOn over the rates and service of the line and is exercising it\n(i.e. the Stale PUC is exercising economic regulatory jurisdiction, not FERC). that would be grounds for concluding\nthat the line is not subject to FERC jurisdiction and therefore can be regulated as an intrastate pipeline by a State\nhaving a certlfication for gas under 49 U.S.C. 60105.\nIn the case of the Siaytonville pipeline. it functions and operates as a gathering line from a safety perspective as\ncalled for in 49 U.S.C 60101 and regulated in 192 (including the incorporated APt RP SO)-it transports gas from a\nproduction facility (Central Station) to a transmission line (Centerpoint transmission line). Uk.wlse, under1S\nU.S.C. 111, the SIaytonville fine is not n.guJat.d by FERC or the State PUC (APSe), because it Is the\ngathering of natural gas-it'. function ctoe. not include transporUdion In intetstate commerce; reset. for\nultimate public consumption for domestic, commerdal. industrial, or any other use; transportatfon or sale\nfor local distribution, or as a c:fnct ..... interstate or Intrastate pipeline.\n\n<<>>\n\n22\nAPI REX\nOMMENDED PRACTICE 80\nCanitralStat.on\nDecicion. Tree d\nNOTE:\nstors such as \"(a)(THA)\nsubpamgraphs in ga.\nacks refer to correspond\nsing we\nPredation 3\nis there a downstruam\nins Protesting Pie\n•You\ndownstream Gas Process\nCHOOSE met outer\nNo\n• Contral\nstation\ning Treatment Far\n14 1000°\nMOOSE\nINTACH\ndownstream commeging\nCHOOSE Furing mos:\n20:0:\n1.\nintral\nStatio\nsease pressure\ncuct on\nanatner pooine\n_ Canapar\nTransmis\nlind\nto une dine rasporting gea\nProducãon Operations\nexclusivety back io\nandior Gathering Facilties\nYes\nCHOOSE turthernost downstrear\nart of gas delivery to a Produca\nFURTHERMOST OOWNSTREAM CHOSEN\nlor tuel, gas let, or\nOperabion or Gathering Facilty\nPOINT IS THE END OF GATHERING\npas injection\nHIS TRANSPORTATION E\nIOT GATHERING\nCOMMENT Su Process Parts an da pes transp\nDe 300 stat\nLahon\nprocessing\nFigure B-2-Alternative 1 Decision Tree for Figure B-1 (Scenario A)\n4\n\n<<>>\n\n2.2.1.2.1 incidental GaIMrIng\n_ In die ClIP A{ gat proceasiIIa or •• \"\".\",. die CODIIIIC-\ntIOD to a lJ'WISIDiSJion liDc is poenI1y a\"\"irwl widlin the\nboundariea of die facility. 1bia is DOt always tbe cae. bow·\n8'tU The $IIbIIriDI tiae operab may bawl 10 IIIOWI !be 1M\nthrough a pipeline some aaditiOliiI distance from the p!aql19\nanoi&f mpeli!ie: Ttle pipeline movie,§ the gas from m.; Il'&tIl\nt~ another e!pelioc is termed \"inc;idenW gatb!;ring.\" 'J:M\n-Incidental ga1herin( resumes ;u the e outlet and 1.UIQn-\nues to the other pIpeline connection. lncidental satheriDI!!!!Y\n----------- - -- \"'\n----.' - --\n,\nFurthetmo8t\nDownatraam\nPoint\nin Production\nr----.... /7.:::fn{wft!;G;,\nProduction ~ ....... p 'l)ct!ssar.9 Plan!. Gas 7' fllil\\fnafl t\nOperation >= ~IY, Gas COmO rEl,;iiJon, ?(\n:'lOll'!: t ol l ast Comm7rqiJr':i\n(~fQ'''\"'''' , r,..r~s..........;:~, ; M _ ,\n\\ ';'\"\" It .----'\n\\\n--\n----- --- ~:==(=:x---::::--::..-:::.-::.-=--=-...J- -)\n.... --~:;,..e---'Jq; ~~I~ -------.\ncox P\":.av\";'-'''''''\nFigure 2-6-(nddental Gathering Downstream of an Identified Endpoint\n5\n\n<<>>\n\nDEPAR11tBfT OF TRANSPORTA1lON\nPiptfkJe and tta_ .. foua ........\nw.ty AcfmifHttation\n4t CFR hrt 1t2\n{OodIlIt No. PtW8A-1t18 •• ; AmcIt. 192-\n102)\nFIN 2137-A81.\na.~UM~\nAIterrIatiYe 0eflnifI0n for Onshore\nUnea and New SafatyStandatds\nAOINCY: Pipeline and Hazardous\nMaterials Safety Administration\n(PHMSA). DOT\n4CTtO\\II: finat nd