# CDX Gas — Pipeline Safety Interpretation

- **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:** Not available
- **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:**

<<<PAGE 1>>>

U.S. Department
of Transportation
Pipeline and Hazardous
Materiais Safety
Administration
1200 New Jersey Avenue, SE
Washington, D.C. 20590
JUL 1 42009
Mr. Greg Schrab
HSE Coordinator
CDXGas
14800 Landmark Blvd, Suite 400
Dallas, TX 75254
Dear Mr. Schrab:
In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated
September 19,2008, you requested an interpretation of the applicability of the Federal pipeline
safety regulations in 49 CFR Part 192 to your Slaytonville natural gas pipeline. You stated that
the Slaytonville line is an eight-mile line connecting Central Station, a gas processing and
compression facility, to the CenterPoint gas transmission pipeline. You explained that, contrary
to a recent determination by the Arkansas Oil and Gas Commission that the Slayton ville line is a
transmission line, you believe that the Slaytonville line is an "incidental gathering" line under
section 2.2(a)(l)(E) of API RP 80 as incorporated in Part 192 and, therefore, unregulated since it
is located entirely within a Class 1 area. You requested a final determination from PHMSA as to
whether the Slaytonville line is a regulated gas transmission line or a non-regulated incidental
gathering line.
Pursuant to 49 U.S.C. 60101 et seq., PHMSA prescribes and enforces standards and regulations
that apply to the gathering, transmission, and distribution of gas by pipeline. A gathering line is
defined in 49 CFR § 192.3 as "a pipeline that transports gas from a current production facility to
a transmission line or main." That same section defines a transmission line as "a pipeline, other
than a gathering line, that: (1) Transports 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) operates at a hoop stress of 20 percent or more of SMYS; or (3) transports
gas within a storage field."
On March 15, 2006, PHMSA issued a Final Rule that defined a "regulated gathering line" and
set forth the requirements that apply to regulated gathering lines (71 FR 13289). The rule
adopted API RP 80 with certain limitations. Section 192.8 now provides as follows:
§ 192.8 determined?
How are onshore gathering lines and regulated onshore gathering lines
(a) An operator must use API RP 80 (incorporated by reference, see § 192.7), to
determine if an onshore pipeline (or part of a connected series of pipelines) is an
onshore gathering line. The determination is subject to the limitations listed
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety. provides written clarification 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 2>>>

2
below. After making this determination, an operator must determine if the
onshore gathering line is a regulated onshore gathering line under paragraph (b) of
this section.
(1) The beginning of gathering, under section 2.2(a)(l) of API RP 80, may not
extend beyond the furthermost downstream point in a production operation as
defined in section 2.3 of API RP 80. This furthermost downstream point does not
include equipment that can be used in either production or transportation, such as
separators or dehydrators, unless that equipment is involved in the processes of
"production and preparation for transportation or delivery of hydrocarbon gas"
within the meaning of "production operation."
(2) The endpoint of gathering, under section 2.2(a)(I)(A) of API RP 80, may not
extend beyond the first downstream natural gas processing plant, unless the
operator can demonstrate, using sound engineering principles, that gathering
extends to a further downstream plant.
(3) If the endpoint of gathering, under section 2.2(a)(l)(C) of API RP 80, is
determined by the commingling of gas from separate production fields, the fields
may not be more than 50 miles from each other, unless the Administrator finds a
longer separation distance is justified in a particular case (see 49 CFR § 190.9).
(4) The endpoint of gathering, under section 2.2(a)(l)(D) of API RP 80, may not
extend beyond the furthermost downstream compressor used to increase gathering
line pressure for delivery to another pipeline.
While you correctly point out that the rule did not expressly adopt a limitation on the fifth
possible endpoint of gathering in section 2.2(a)(1 )(E) of API RP 80, PHMSA considers this to be
a drafting error that does not reflect PHMSA's intent. In the Supplemental Notice of Proposed
Rulemaking issued on October 3,2005, PHMSA expressed its intent to "assure gathering line
determinations do not stray significantly from PHMSA' s historic interpretations of gathering or
do not abuse the "furthermost downstream" concept." (70 FR 57540)
Historically PHMSA has not accepted the incidental gathering designation. Based on the
pressures at which these lines typically operate and the fact that they share maintenance and
inspection needs with high pressure transmission lines, PHMSA has historically treated these
lines as regulated transmission lines and did not intend to make any change in the rule. Indeed,
the intent of Congress in mandating the rulemaking was to bring additional pipeline mileage into
the regulations, not to deregulate lines.
In our experience, the majority of operators treat these lines as regulated transmission lines and
PHMSA believes they will continue to do so. Although incidental gathering designations are
currently permissible due to the drafting error and would apply to the Slaytonville line based on
the description you provided, PHMSA is currently considering whether a rule amendment should
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety, provides written clarification 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 legaIIy-enforceable rights or obligations and are provided to
help the public understand how to comply with the regulations.

<<<PAGE 3>>>

3
be undertaken to correct the rule and propose adding a fifth limitation on API RP 80 which
would mean incidental gathering determinations are no longer permissible. Because PHMSA
may undertake such a rule amendment in the near future, operators should strongly consider
keeping incidental gathering designations to an absolute minimum and treating these lines as
regulated transmission lines.
In addition, be advised that because an incidental gathering line is a single connecting line and
not a system oflines, by definition it is limited to the first tie-in downstream of the processing or
compression facility even if that connection does not extend all the way to the large diameter
interstate line.
Finally, with respect to the beginning of gathering, the system maps you submitted as supporting
documentation incorrectly depict CDX's production operations as extending to the Central
Station. The relevant API RP 80 diagram (Fig. 2-6) clearly shows that gathering begins at the
terminus of production and transports gas to the processing, compression location depicted by
the schematic. Proper application of the definition for production in API RP 80, section 2.3 and
the supplemental definitions in section 2.4 indicate that the production operations in the CDX
system cease much further upstream, at least as far upstream as the facilities identified on the
map as "PODS". Further review of the equipment and processes would be necessary to make a
determination of the exact endpoint of production and beginning of gathering.
I hope that this information is helpful to you. If I can further assist you with this or any other
pipeline safety regulatory matter, please contact me at (202) 366-4046.
Sincerely,
·.4~2Y
sr~A.Gale
I Director, Office of Regulations
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety, provides written clarification 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 4>>>

14800 Landmark Blvd, Suite 400, Dallas, TX 75254
Phone: 972-392-1880 Fax: 972-392-1881
September 19, 2008
Office of Pipeline Safety (PHP-30)
PHMSA
u.S. Department of Transportation
1200 New Jersey Avenue, SE
Washington, D.C. 20590-0001
RE: CDX Gas, LLC Request for Written Regulatory Interpretation
CDX Gas, LLC is requesting a written regulatory interpretation on one of its pipelines (the "Slaytonville
line") relative to 49 CFR Part 192 Gas Gathering Line Definition; Alternative Definition for Onshore
Lines and New Safety Standards, Final Rule, Federal Register, Vol. 71, No. 50, March 15, 2006. CDX
Gas' determination, in accordance with the above-referenced regulation, is that the Slaytonville line is a
non-regulated Type A gathering line (see attached CDX Gas Arkoma Project determination document,
submitted to the Arkansas Oil and Gas Commission [AOGC] and PHMSA Southwest Region during a
meeting on August 7, 2008). CDX is making this request as a result of the determination made by the
AOGC- that the Slaytonville line is a transmission line (see attached September 4, 2008 letter).
Before summarizing CDX Gas' determination as a basis for requesting PHMSA's written regulatory
interpretation, CDX Gas would like to call out several points in the September 4, 2008 AOGC letter:
• AOGC General Rule 0-17 and 49 CFR Part 192 regulations (paragraph #1): the AOGC
State regulation D-17 has no bearing on the determination (it simply references 49 CFR 192),
other than D-17 does give AOGC jurisdiction over all "pipeline operator" lines from the
wellhead to the custody transfer meter (which effectively focuses on exploration and production
company production and gathering lines), previously, the Arkansas Public Service Commission
was the only Arkansas State agency enforcing PHMSA regulations; the complete 3115/06 Federal
Register Final Rule, 49 CFR 192, and API RP-80 incorporated by reference are codified and do
have a bearing on the actual determination
• Onshore Gas Gathering F AQs (paragraph #2): F AQs, referenced by AOGC, are examples to
be used as guidance in interpreting an actual rule or regulation-they are not part of or
referenced in the Federal Register Final Rule, 49 CFR 192, or API RP-80 as incorporated by
reference, therefore these F AQs are not codified and do not have the force of regulations;
specifically, F AQ no. 5 referenced by the AOGC, was written and is apparently being interpreted
in a way that contradicts the Federal Register Final Rule (specifically, definition of the fifth
possible endpoint of gathering and "incidental gathering")
• Incidental Gathering (paragraph #5): it has not "been determined that while incidental
gathering MAY NOT be limited"; PHMSA DID NOT propose a limitation on the fifth possible
endpoint of gathering in 49 CFR 192, therefore incidental gathering under section 2.2( a)( 1 )(E) of
API RP-80 IS NOT limited by PHMSA as discussed in the 3/15/06 Federal Register Final Rule
(p. 13292, #5) and incidental gathering IS NOT being used to "circumvent a stated limitation"

<<<PAGE 5>>>

Please refer to the attached detennination document for the detailed basis for CDX Gas' detennination
that the Slaytonville line is a non-regulated Type A gathering line, not a transmission line. CDX Gas'
detennination, and this request for a written interpretation, is based primarily on p. 13292, #5 of the
3/15/06 Federal Register Final Rule (p. 7 of the attached detennination document) and the referenced
section 2.2.1.2.6 in API RP-80 (p. 5 of the attached detennination document):
• p. 13292, #5, Federal Register Final Rule: "We did not propose a limitation on the fifth
possible endpoint under section 2.2(a}(I)(E). This endpoint is the connection to another pipeline
downstream of the furthermost downstream endpoint under sections 2.2(a)(l)(A) through (D), or
in the absence of such an endpoint, the furthermost downstream production operation." "The
endpoint applies to connecting lines described as 'incidental gathering' under section 2.2.1.2.6 of
API RP-80. An example of a connecting line is a pipeline that runs from the outlet of a natural
gas processing plant to a transmission line. PHMSA considers 'incidental gathering' to include
only lines that directly connect a transmission line to one of the endpoints (A) through (D), as
limited by this fmal rule. Lines that connect a transmission line to one of these endpoints by way
of another facility are not considered 'incidental' gathering." (emphasis added)
• Section 2.2.1.2.6, API RP-80: "The pipeline moving the gas from the plant to another pipeline
is termed 'incidental gathering'. The 'incidental gathering' resumes at the plant outlet and
continues to the other pipeline connection. Incidental gathering may also occur when a
compressor is a potential endpoint". From a functional standpoint, this section of incidental
gathering line is no different from the rest of the gathering system. The definition, therefore,
includes recognition that gathering may continue downstream of the last endpoint identified by
processing, treatment, commingling, or compression activities to the connection with another
pipeline. (emphasis added)
As illustrated in Figure 2-6 of section 2.2.1.2.6 of API RP-80, as referenced in the 3/15/06 Federal
Register Final Rule, CDX Gas' production operation ends at the outlet of the Central Station. The
Slaytonville line then directly connects the Centerpoint transmission line to the Central Station, which
contains two possible endpoints of gathering (gas treatment and compression). Therefore, the
Slaytonville line is a "connecting" "incidental gathering" line, with the endpoint of gathering being its
connection with the downstream Centerpoint transmission line.
CDX Gas respectfully requests a written regulatory interpretation of its detennination that the
Slaytonville line is a non-regulated, Type A gathering line, in response to the AOGC detennination that it
is a transmission line. Please call me at (214) 242-1147 with any questions regarding this request.
Sincerely,
HSE Coordinator
cc:
Thomas B. Deal/Attorney, CDX Gas, LLC, 14800 Landmark Blvd., Suite 400, Dallas, TX 75254
Gary Looney/Assistant Director, Arkansas Oil and Gas Commission, EI Dorado Regional Office, 2215
West Hillsboro, EI Dorado, AR 71730
Patrick Gaume/Staff Engineer, Office of Pipeline Safety Southwest Region, 8701 South Gessner, Suite
1110, Houston, TX 77074

<<<PAGE 6>>>

ARKANSAS OIL AND GAS COMMISSION
Direetor's 0fIke:
301 Natural Resourees Drive
Suite 102
Little Rode. AR 72205
Phone: (SOl) 683-5814
Fax: (SOl) 683-5818
http://www.aogc.atate.ar.us
Mlke8eebe
Governor
Lawrence Bengal
Director
£I Don4o ReaJoaal Oftke:
1115 W .. HIIIIbero
£I DeraIl., All 11730
PIootIe: (170) ~H5
FAX: (1'70) I62-IIt3
Fon SmiO JtecjouI 0fIIu;
;uo, PIIocaiI Avuae
,"" s.tG, All 7%903
no.e: (479) 646-6611
FAX: (m) ..... 7656
September 4, 2008
Mr. Greg Schrab
COX Gas, LLC
5485 Beltline Road, Ste 190
Dallas, TX 75254-7672
Re: Determination of Pipeline Status
Siaytonville Pipeline
Sebastian County, AR
Dear Mr. Schrab,
Commission staff conducted a review of the Hartford Pipeline System operated by COX
GAS, LLC on May 12,2008 in an effort to affirm regulatory compliance with AOGC
General Rule 0-17 and the applicable regulations contained within 49CFR Part 192.
DUring that review, I concluded that a portion of the pipeline system named as the
Siaytonville pipeline may be a transmission line and verbally communicated same to
you. My conclusion was based upon the limitations set forth under Part 192.8 (a) (4).
The Siaytonville pipeline is identified as the portion of your system downstream of the
final compressor station, which boost pressure and transports natural gas to another
pipeline at the custody transfer meter and is approximately eight (8) miles in length. In
further discussion, you indicated that the other pipeline is a transmission line operated
by Centerpoint Energy. Upon final review which included confirmation that the other
pipeline was indeed a transmission line and the Onshore Gas Gathering FAQs
published by PHMSA (specifically FAa no. 5), it was determined that the Siaytonville
line should be regulated as a Transmission Pipeline.
Subsequent emails and phone conversation ensued in which you expressed your
opinion that the Siaytonville line was not a transmission line and at your request I
agreed to discuss this matter with Mr. Patrick Gaume, PHMSA Liaison to AOGC.
Those discussions ended with the same decision that the Siaytonville line should be
regulated as a transmission line.
COMMISSION MEMBERS
Chad While. Chairman, Magnolia
W. Frank Morledge, Vice-Chairman, Forrest City
Charles Wohlford, Fort Smith • Bill Poynter. Texarkana
Mike Davis., Maanolia • Kenneth Williams. Jersey
Carolyn Pollan, Fort Smith· William L Dawkins. Jr., Fort Smith
Jerry Ungley. Smackover
An cqll1l opportunity employer

<<<PAGE 7>>>

Your further disagreement in this matter resulted in a meeting at AOGC office in Little
Rock on August 7, 2008 to discuss this issue. Present were Mr. Bowen and you
representing CDX, Mr. Gaume and myself. You presented your opinion of the
regulation and submitted both verbal and written arguments that were taken under
submission for review by representatives of PHMSA.
It has been determined that while incidental gathering may not be limited. It is clear that
in 192.8 (a) (4) a limitation has been placed on the endpoint of gathering and that
incidental gathering can not be used to circumvent a stated limitation. Therefore the
fact that the pipetine in question is downstream of the last compressor becomes the
main determinate and it is therefore a Transmission Line and shall be regulated
accordingly.
Any appeal of this determination should be filed in accordance with 49 CFR Part
190.11. Should you desire to file an appeal, please submit a copy of any appeal
request and aU supporting documentation to my attention at the EI Dorado Regional
Office.
Sincerely,
z1 jJ
~L i) ,<(}G,,\/
G"a,.J D. Loon/y
Assistant Director
EI Dorado Regional Office

<<<PAGE 8>>>

cox Gas. LLC Arkoma Project: Determination of Jurisdictional Status of Pipelines
Production (CtnSrJl StatIon 1114 YpttrMn)
Based on a site visit on May 12 and foIow-up communic:atiOns, the AOGC has agreed with COX Gas'
determination that the system of COX Gas, LlC wells through the screw compressors -PODS- and the Central
Station (Which includes separation, dehydration. and compression) in the Arkoma Project all meet the definition of
production per 192.8 (1) and Sections 2.3 and 3.1.4 of APt RP 80. Therefore, production does not end until the
outtet of the Central Station. Per AOGC Rule 0-17, COX Gas has submitted a map of these production facilities
(as well as the SIaytonviIIe pipeline they deliver into) to AOGC per Rule 0-17.
SlaytonyUtt Type A Gatbtrina Un! (Downttr!am of C!ntrJI Station)
COX Gas, LlC's $laytonville line (approximately 8 miles in length) transports gas from the end of production at the
Central Station to the connection with, and custody transfer to, the Centerpoint transmission line. Therefore, the
Staytonvilte line functions as a gathering line. because it transports gas from a current production facility to a
transmission line. Based on their May 12 site visit and fo8ow-up communications, AOGC notified COX Gas that
AOGC has determined that the $laytonville line is a transmission fine and wiD be under the jurisdiction of the
AOOC. During a follow-up meeting with Gary LooneylAOGC on July 17. Mr. Looney again stated he has forwarded
all communications to his PHMSA liaison, whose stance continues to be that Slaytonville is a transmission line.
COX Gas' determination remains that the Siaytonville line is a gathering line. The Staytonvllfe line operates at a
hoop stress of >20% SMYS. so per 192.8 it is a Type A gathering line. It is not a regulated gathering pipeline per
192.8 (b), because It does not lie within a Class 2, 3 or 4 location. The $laytonville line lies within a Class 1
location. because there are 10 or fewer buildings Intended for human occupancy within 220 yards on either side of
the centerline of any continuous 1-mile length of the pipeline (see details on class location below). COX Gas'
determination remains the SlaytonvHle line does not meet the definition of a transmission line in 192.3:
"TransmIssion line means a pipeline. other than a gathering line. that (1) Transports gas from a gathermg Ime or
storage facility to 8 distribution center. storage faCility, or itffge volume customer that IS not down-stream from a
distrIbution center; (2} operates at hoop stress of 20 pen;enl or more of SMVS: or (3) transports gas Wlthm a
storage field •
As defined and described above. the SJaytonvilte line functions as a gathering. not a transmission line, because it
transports gas from a production facility (Centrat Station) to a transmission line (Centerpoint). it does not transport
gas from a gathering line or storage facility to a distribution center, storage facitity, large votume customer, or within
a storage field.
The endpoint of gathering. and therefore the determInation of the Slaytonville line as a gathering. not transmission.
line. can pethap$ best be illustrated using Figure 8--2 from API RP SO. In accordance with API RP 80 2.2 (a) as
incorporated with limitations in 192.8 (a). the gathering function. including the end of gathering. of the Arkoma
Project can best be represented by the decision tree Figure B-2 (attached). As described above. the Central
Station is the furthermost downstream point in the Production Operation [2.2 (a) (1)J. and is also the location of the
furthermost downstream Gas Treatment Facility [2.2 (a) (1) (B)} and Gas Compression [2.2 (a) (1) (O)J. the outlet of
which would be the possible end of gathering. except. the compressor delivers dlrect1y into the SlaytonviJle line.
The SiaytonviIte line transports and connects to the Centerpoint transmission line, not a distribution center, storage
facility, large volume customer. or within a storage fietd as described above. Therefore, the gathering function
extends downstream to the point of connection with another pipeline [2.2(a)(1)(E)). and the furthermost downstream
point and end of gathering is the custody transfer connection with the Centerpoint transmission line.
The Slaytonville line may best be identifted as an -incidental gathering-line, as descrtbed in 49 CFR 192 Gas
Gathering line Definition; Alternative Definition for Onshore Unes and New Safety Standards, Final Rule (Federal
Register Vol. 71. No. 50, March 15. 2006; see attached pages):
'Under section 2.2(e}(1}(DJ, the fourth possible endpoint IS the outlet of the furthermost downstream compressor
station used to lower gathering nne operating pressure to facilitate deliveries into the pipe/me from prodUCtion
operations or to increase gatheting lme pressure for delivery mto another pipeline For conSIstency with our past
Inteq::,retations and current enforcement policy. we proposed to limit thiS endpoint to the outlet of a compressor
used to deliver gas to another pIpe/me. ~ (/I A 5. page 13292J.
I

<<<PAGE 9>>>

"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
mean delivering to another gathenng line" (IV 5 b .. page 13296)
'We did not propose a limitation on the fifth pasS/bht endpoint under Section 2.2(aJ(1)(£:}. This endpoint is the
connection to another pIpeline downstream of the furthermost downstream endpoint under sectIOns 2. 2(a)(1 }(A)
through (0), or In the absence of such an endpomt the furthermost downsnam production operation The
endpoint applies to the connecting lines described as 'Incidental gathering. under SI1CtiOn 2.2. 1.2,6 of API RP 80
An example of a connecting line is a pipeline that rullS from the outlet of a natural gfJS processing plant to a
transmission fine. PHMSA c.onsk/fIrs 'incident" fPlfheriltfl' to Include only lines tJutt directly connect 1*
transmission line to one of the endpoints (A) through (OJ. as limited by this final rule' (/I.A 5., page r 3292)
Please refer to Figure 2-6-tncidental Gathering Downstream of an Identified Endpoint in section 2.2.1.2.6 of APt
RP 80 as referenoec:t in FlOat Rule 49 CFR 192. As described also using decision tree Figure B--2. the Central
Station represents two possible endpoints of gathering Identified in Figure 2-6: the furthermost downstream gas
treatment facility [2.2 (a) (1) (8» and gas oompressor [2.2 (a) (1) (0»). The SlaytonviUe line directly connects the
Centerpoint transmission line to !he Central Station. which contains these two possible endpoints of gathering.
Therefore. the Siaytonvilie line can be identified as a ~connecting· -incidental gathering" Ilne. with the endpoint of
gathering being its connection with the downstream Centerpoint transmission line. However. as stated in API RP
80. from a functional standpoint. there is no difference between incidental gathering and other gathering. so there is
no impact on COX Gas' determination that the SIaytonviUe line is a non-regulated Type A gathering line.
Frequently Asked Questions (FAas) are examples to be used as guidance in interpreting an actual rule or
regulation-they are not part of the actual rule or regulation and therefore have no legal standing. Nonetheless,
because AOGC initially referenced FAa #5 during their May 12 site visit and used it as the basis for their
determination. FAa #5 (attached) is also used to further illustrate the COX Gas Siaytonville line case as described
above. Additionally. per API RP-80 (2.6.2.1 Physical Parameters) line length and pressure are not factors that can
be used to determine the actual function and therefore the designation of a pipeline; the Federal Register Final
Rule and 49 CFR 192 clearly describe that both Type A gathering and transmission lines operate at pressures
resulting in a hoop stress of >20% SMYS. and line length is not used as a determining factor in the Final Rule or 49
CFR 192. As another point of reference. the COX Gas Slaytonvifte line is not a FERC-regulated interstate or
intrastate transmission pipeline (see attached narrative).
c .... LocatIon of §laytonville Type A Gathtrina Uo..
As documented on our system map. and reviewed and discussed with Gary Looney/AOGC during our July 17
meeting. there are a total of fourteen houses within 220 yards on either side of the centerline of the SlaytonviUe
pipeline, along the approximately 8 mile line length from the Central Station to the custody transfer point at the
Centerpoint Interconnect:
• There are six houses within any continuous 1 mile of the Slaytonville line near its termination at the
CentervDle Interconnect;
• There are fIVe houses within any continuous 1 mile of the SlaytonvUIe line in the area where it crosses
State Highway 252;
• There are three houses within any continuous 1 mile going farther south of State Highway 252 along the
Slaytonville pipeline (and including the southernmost house of the aforementioned group of fIVe houses).
• Finally. there is one house within any continuous 1 mile of the Slaytonville line in the area on the west side
of Gap Road, across from the T -interse<:tion of Gap Road with Diamondback Lane.
Therefore, the SlaytonviJie Type A gathering line lies entirely in a Class 1 location [per 1925 (a) and (b){ 1}' ::10
bulldlflgs Intended for human occupancy wlthm 220 yardS of its centerline atong any continUOUS 1-mlle lengthL SO it
is a non-regulated Type A gathering line. Per 192.9 <e, (3). if a Change in class location causes the Sfaytonvil!e line
to become a regulated gathering tine, COX wi" have 2 years to comply with the requirements of a regulated Type A
Gathering line.

<<<PAGE 10>>>

FERC Status of $laytonville Type A Gathering Un.
API RP 80 (Section 2.2.2.4), as incorporated into 192. states: "It was recognlzed that FERC or other agency
pipeline designations were not developed with pipeline safety as the regulatory purpose and as such may represent
and include concepts and assumptions that are not relevant to Pipeline Safety Act objectives". However. the
review of 49 U.S.C 60101.15 U.S.C. 717, and AQ8..08-01 befow show the inter.relationshlp between the definition
of pipelines from a pipeline safety perspective-based on their functionaf and operational characteristics-and from a
FERC or State PUC regulatory perspective.
The federal pipeline safety laws (49 U.S.C. 60101 et seq.) can for the definition of gathering lines as follows:
60101 (b) Gathering LlIles.-{1 HAY Not later than October 24. 1994, the Secretary shall prescnbe standards defIning
the term .. gathering lineM
•
(8) In defining "gathering line" for gas. the Secretary--
(I) Shall consider functional and operatiOnal characteristics of the hnes to be Included In the definition; and
(Ii j IS nol bound by a ctasslflCabon the CommIssion establishes under the Natural Gas Act (15 USC 71 7 at
seq )
The Natural Gas Act (15 U.S.C. 717 et seq.) defines the transportation and sale of natural gas to be regulated
underFERC:
15 USC 717 (b) TransactIOns 10 whICh provIsions of chapter 3ppttCable
The provisions of this chapter shall apply to the transportation of natural gas .n mterstate commerce. 10 the sale
In Interstate commerce of natural gas for resale for ultImate publIC consumption for domestic, commercial,
Industrial, or any other use, and to natural...gas companies engaged In sucn transportatlon or sale and to the
ImportatIOn or exportation ot natural gas m foretgn commerce and (0 persons engaged 10 such Importahon Of
exportation but shalt not apply to any other transportation or sale of natural gas or to the local drstnbuhon of
natural gas or to the facilities used for such distribution or to the production or gathering of natural gas.
PHMSA has issued an Advisory Bulletin (A0B-08-01 - Direct Sales Pipelines Jurisdiction) stating that the Pipeline
Inspection, Protection. Enforcement, and Safety Act of 2006 (PIPES Act) eliminated the former exception of direct
sales natural gas pipelines from the definition of an interstate gas pipeUne facility. The Federal pipeline safety laws
(49 U.S.C. 60101 et seq.) define an "interstate gas pipeline facility" as a facility subject to the jurisdictiOn of the
FERC under the Natural Gas Act (15 U.S.C. 717 et seq.). Section 7 of the PIPES Act changed this by eliminating
the exception of direct sales pipelines. As a result. direct sales gas transmission pipelines subject to FERC
jurisdiction formerly considered to be intrastate pipelines for purposes of the pipeline safety laws are now
considered to be interstate pipelines. If the line has a State certification from the State Public Utility Commission
(PUC) SUCh that the State PUC has regulatory jurisdictiOn over the rates and service of the line and is exercising it
(i.e. the Stale PUC is exercising economic regulatory jurisdiction, not FERC). that would be grounds for concluding
that the line is not subject to FERC jurisdiction and therefore can be regulated as an intrastate pipeline by a State
having a certlfication for gas under 49 U.S.C. 60105.
In the case of the Siaytonville pipeline. it functions and operates as a gathering line from a safety perspective as
called for in 49 U.S.C 60101 and regulated in 192 (including the incorporated APt RP SO)-it transports gas from a
production facility (Central Station) to a transmission line (Centerpoint transmission line). Uk.wlse, under1S
U.S.C. 111, the SIaytonville fine is not n.guJat.d by FERC or the State PUC (APSe), because it Is the
gathering of natural gas-it'. function ctoe. not include transporUdion In intetstate commerce; reset. for
ultimate public consumption for domestic, commerdal. industrial, or any other use; transportatfon or sale
for local distribution, or as a c:fnct ..... interstate or Intrastate pipeline.

<<<PAGE 11>>>

22
API REX
OMMENDED PRACTICE 80
CanitralStat.on
Decicion. Tree d
NOTE:
stors such as "(a)(THA)
subpamgraphs in ga.
acks refer to correspond
sing we
Predation 3
is there a downstruam
ins Protesting Pie
•You
downstream Gas Process
CHOOSE met outer
No
• Contral
station
ing Treatment Far
14 1000°
MOOSE
INTACH
downstream commeging
CHOOSE Furing mos:
20:0:
1.
intral
Statio
sease pressure
cuct on
anatner pooine
_ Canapar
Transmis
lind
to une dine rasporting gea
Producãon Operations
exclusivety back io
andior Gathering Facilties
Yes
CHOOSE turthernost downstrear
art of gas delivery to a Produca
FURTHERMOST OOWNSTREAM CHOSEN
lor tuel, gas let, or
Operabion or Gathering Facilty
POINT IS THE END OF GATHERING
pas injection
HIS TRANSPORTATION E
IOT GATHERING
COMMENT Su Process Parts an da pes transp
De 300 stat
Lahon
processing
Figure B-2-Alternative 1 Decision Tree for Figure B-1 (Scenario A)
4

<<<PAGE 12>>>

2.2.1.2.1 incidental GaIMrIng
_ In die ClIP A{ gat proceasiIIa or •• "".",. die CODIIIIC-
tIOD to a lJ'WISIDiSJion liDc is poenI1y a""irwl widlin the
boundariea of die facility. 1bia is DOt always tbe cae. bow·
8'tU The $IIbIIriDI tiae operab may bawl 10 IIIOWI !be 1M
through a pipeline some aaditiOliiI distance from the p!aql19
anoi&f mpeli!ie: Ttle pipeline movie,§ the gas from m.; Il'&tIl
t~ another e!pelioc is termed "inc;idenW gatb!;ring." 'J:M
-Incidental ga1herin( resumes ;u the e outlet and 1.UIQn-
ues to the other pIpeline connection. lncidental satheriDI!!!!Y
----------- - -- "'
----.' - --
,
Furthetmo8t
Downatraam
Point
in Production
r----.... /7.:::fn{wft!;G;,
Production ~ ....... p 'l)ct!ssar.9 Plan!. Gas 7' fllil\fnafl t
Operation >= ~IY, Gas COmO rEl,;iiJon, ?(
:'lOll'!: t ol l ast Comm7rqiJr':i
(~fQ'''"'''' , r,..r~s..........;:~, ; M _ ,
\ ';'"" It .----'
\
--
----- --- ~:==(=:x---::::--::..-:::.-::.-=--=-...J- -)
.... --~:;,..e---'Jq; ~~I~ -------.
cox P":.av";'-'''''''
Figure 2-6-(nddental Gathering Downstream of an Identified Endpoint
5

<<<PAGE 13>>>

DEPAR11tBfT OF TRANSPORTA1lON
PiptfkJe and tta_ .. foua ........
w.ty AcfmifHttation
4t CFR hrt 1t2
{OodIlIt No. PtW8A-1t18 •• ; AmcIt. 192-
102)
FIN 2137-A81.
a.~UM~
AIterrIatiYe 0eflnifI0n for Onshore
Unea and New SafatyStandatds
AOINCY: Pipeline and Hazardous
Materials Safety Administration
(PHMSA). DOT
4CTtO\II: finat nd<J
._-------
SIJMMAllV: l'hlli dClion adopts a
COlUeOSUll standard to distinguiJlh
OIIJIho1'll gathering Hoas from other gas
pipeUnes and production operations. 10
addition. it establishes safety rules for
certain onshore gathering tines in rural
areas and revises cutre'ut rules for
certain onshore gathering lines in
nonrural areas. Operators will U$tI a new
risk-based. approach to determine which
onshore gathering lines are subject to
PHMSA's gas pipeline safety rules and
which of these rules the lines mUliI
meet. PHMSA intends this action to
reduce disagreements over
classifications of onshore gathering
lines, increase public confidence in the
safety of onshore gathering lines. and
provide safety rules comistent with the
risks of ombore pthering lines.
OATU: This final rule takes effect April
14. ZOO6. The Dltector of the Federal
Rtgister approves the incorporation by
ref'etence of API RP 80 in thill rule as of
April 14. 2006.
POll FlMTHIR 1NIORIIA11OH CONI'ACT:
DeWitt Butdeeux by phone at 405-954-
72%0 or bye-mail at
dewitt.burdeawcOcrot.gov.
SUH\.lllllrfAAY IMIOIIMATtON:
L8~
A. Current RejulatiOR of Onshore
Gathering Unes; Definition Problem
Gas gathering lines are pipelines used
to collect natural gas from production
facilities and transport it to transmission
or distribution lines. which then
tranaports it to the consumer. PHMSA's
pipelille safety ruJes in 49 CFR part 192
apply to tlut transportation o( natural
gas and other gas by pipeline, However.
onshore gathering lines in nual areas
(areas outside cities. towns. villages. or
designated tellidential or commercial
areas) are subject only to S 192.612.
which prescribes ilUpaction and burial
requirements for lines within Gulf of
Mexico inlett (f5192.1(b)(<I) and (b)(5)).
(Note: Lines in these inlets 81'11 nat
covered by this final rule.)
Under S 192.9. Ptherins lines in
nonrural areas must meet the tame
safety standards for deIip.
construc:tion. testing. operation. and
maintenance as p5 transmisaiDn lines,
except the requirements of § 192.150 on
passage of an intenIaJ inspection device
(also known as smart pigs) and subpart
o on integrity management. In addition,
PHMSA's drug and alcohol testing
regulatiOlU in 49 CFR part 199 apply to
nonrural gas ptbering lin •.
Section 192.3 currently defines the
terms "gathering line." "trammission
line," and "distribution line":
"Gathering liM" IlIMfU 8 pipeline thaI
transports sa. from a cummt production
facUity to a tranJlmiuion line or main.
''Trall$mUsloo liM" m-.s a pipeline. other
than a gathering Itne, tbat I_potU &as from
a pthering line or 5tDlIp I'acllity to a gas
distribution center or storage faciUly:
OpetatllS at a hoop stress of 20 percent or
more of a Spadlled Minimum Yield Strength
(SMYS). or IrarulpGrtS gas wilhin 8 storage
field. "Distribution line" _, a piptlliae
other than 8 gathering or transmasion line.
Beeatl4e these definitions are circular
and part 19Z does not dafine
"production CacUity," operators and
government inspectors have had
djfficulty distinguishing regulated
gathering lines from untegulated
production £acillties and unregulated
gathering lines from regulated
transmission and distribution lines.
Also. tbe complexity of many gathering
systems bu increased the difficulty of
distinguishing gathering lines.
B. Past Attempts To Resolve the
Definition Problem and Dtttermine the
,\Ieed To RBsuJate Rural Gathering UnftS
In 1974. DOT tried to correct the
problem of distinguishing gathering
lines by proposing to revise the
gathering line definition (39 FR 34569;
Sept. 26. 1914 •. However, the proposal
was later withdrawn becaUS8 comments
indicated many terms and phrases wen!
unclear (43 FR 42773: Sept. 21. 19781.
Afterward. the problem lingered until
1986. when the National Association of
Pipeline Safety Representatives
(NAPSRI. a nonprofit association of
State pipeline safety officials. svrveyed
its members and reported numerous and
continuing disagreements with
oparaton over ptberioa lines. Driven by
the NAPSR survey. in 1991 DOT apin
propoHd to revise the gathering line
definition (56 PR48SOS; Sept. 25. 1991).
However. the public response was
generally unfavorable. so DOT delayed
any furthet action until it collected and
considered mote information.
13289
Part 192 does not regulate the safety
of most rural ptbering lines because.
untill991. the pipeline safety law (49
U.S.c. Chapter 6(1) restricted OOT's
authority over onshore gathering lines to
linea in IlOIltW'&llocatiOlU. 1 In 1992.
Consresa save DOT specific authority to
define gas pthering lines foe purposes
of safety regulation. and to regulate a
class of twal pthering lines called
"regulated gathering lines" (49 U.S.C.
60101(a}(Zl) and 60101{b)). The new
authority directed DOT to consider
functional and operational
cbaracteri$tics in defining gathering
lines. Further direction was to consider
such factors as locetion. length of line,
operating pressure, throughput. and gas
composition in deciding which rural
lines warrant regula
- **truncated:** true
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