{"operation":"document","citation":"PI-09-0009","title":"Marathon Pipe Line L.L.C. — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2009-06-24","effective_on":null,"summary":"PI-09-0009 response to Marathon Pipe Line L.L.C. concerning 192.1, 192.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0009.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0009.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0009","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2009/PI-09-0009.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, D.C. 20590\nJUN 2 4 2009\nMr. Richard A. Abraham\nPipeline Safety Compliance Professional\nMarathon Pipe Line L.L.C\n539 South Main Street\nFindlay, OH 45840-3295\nDear Mr. Abraham:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nSeptember 29, 2008, you requested an interpretation of 49 CFR 192.1 and 192.3 of the Federal\npipeline safety regulations. You asked whether a pipeline you use to supply gas to an offshore\nplatform is subject to Part 192. You also asked what § 192.3 definition would apply to the\npipeline if PHMSA determined that the line is subject to Part 192. You indicated that you\nbelieve that Part 192 does not apply to your pipeline because you are the consumer, transporter\nand owner of the gas used on the platform. Finally, you stated that your position was supported\nby two interpretations issued by the Materials Transportation Bureau, a PHMSA predecessor\nagency, in the 1980's.\nPursuant to Chapter 601, Title 49, United States Code, PHMSA has responsibility for protecting\nagainst risks to life, property, and the environment posed by pipelines. In carrying out its\nresponsibilities, PHMSA has established design, construction, operation, and maintenance\nstandards and regulations for gas pipelines and has responsibility for enforcing these\nrequirements. Under 49 U.S.c. 60102(a)(l) and (2), these standards and regulations apply to\nboth \"pipeline transportation\" and \"pipeline facilities.\" The definition of pipeline transportation\nincludes the gathering, transmission, and distribution of gas, and the definition of a gas pipeline\nfacility includes \"a pipeline, a right-of-way, a facility, building, or equipment\" to be used in\ntransporting gas (49 U.S.C. 60101 (a)(3».\nYou provided the following background information in support of your request: Marathon owns\nand maintains an offshore platform (Spark Platform) that is no longer used to produce gas. The\nSpark Platform receives gas from a 6-inch offshore pipeline which becomes a 3-inch onshore\npipeline (collectively, \"Platform Line\"). Marathon operates the Platform Line at 990 psig. Gas\nusage is metered on the platform and typically indicates platform consumption of 300 mcf per\nmonth. The Platform Line receives gas from a 16-inch transmission line. Marathon operates the\ntransmission line and jointly owns the line with another company. The transmission line\ntransports gas produced by Marathon, the second owner and, occasionally, other companies.\nOur responses to your requests for interpretation are as follows:\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications 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<<<PAGE 2>>>\n\n2\nOur respons~s to your requests for interpretation are as follows:\n1. Question - Does Part 192 apply to the Platform Line?\nAnswer- Yes. The Pipeline Safety Laws (49 U.S.C. 60101 et seq.) and 49 C.F.R. Part 192\nprovide for safety regulation of pipeline facilities and the transportation of gas, without regard to\nwho owns the gas. A sale of the gas is not required. Therefore, gas can be in transportation even\nif it is produced, transported and consumed by the same entity. I\n2. Question - What § 192.3 definition applies to the Platform Line?\nAnswer - Based upon the information you provided, the Platform Line is a transmission line\nbecause it is operated at a hoop stress of 20 percent or more of SMYS. Section 192.3 provides\nthat a transmission line means a pipeline, other than a gathering line, that: (l) Transports gas\nfrom a gathering line or storage facility to a distribution center, storage facility, or large volume\ncustomer that is not down-stream from a distribution center; (2) operates at a hoop stress of 20\npercent or more of SMYS; or (3) transports gas within a storage field. The Platform Line is not a\ngathering line because it does not transport gas ·from a production well to a transmission line.\nThe Platform Line is operated at a pressure of 990 psig, a hoop stress of 20 percent or more of\nSMYS.\nI hope that this information is helpful to you. If I can be of further assistance, please contact me\nat (202) 366-4046.\nSincerely,\no\nDirector, Office of Regulations\nI In light of the broad applicability of the Pipeline Safety Laws, the narrower view reflected in the 1980 and 1983\nMTB interpretations cited by Marathon has long since been superseded. See e.g. July 14, J 992 DuPont\nInterpretation and September 14, 1992 Steer, Strauss, White & Tobias (Armco) Interpretation.\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications ofthe 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<<<PAGE 3>>>\n\nEnvironmental, Safety & Regulatory Compliance\n---------------------Marathon Pipe Line LLC\n539 South Main Street\nFindlay, OH 45840-3295\nTelephone 419/421-3529\nSeptember 29,2008\nAssociate Administrator for Pipeline Safety\nOffice of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\n400 7th Street, S.W.\nWashington, D.C. 20590\nRe: Request for 49 CFR Part 192 Interpretation (§§ 192.1 and 192.3)\nTo Whom It May Concern:\nBackground\nMarathon Oil Company (\"Marathon\") owns and maintains the Spark Platform\nlocated offshore in Alaska's Cook Inlet; however, gas production operations were\nsuspended in 2005, and a return to production is improbable.\nThe offshore 6-inch pipeline, a non-regulated gathering line until production\noperations ceased, becomes 3-inch onshore (the \"Platform Line\"), connects to an\nonshore 16-inch transmission line (\"Transmission Line\"). That Transmission Line\nis solely operated by Marathon but jointly owned by Marathon and a second\ntransporter (\"Owners\"). Further to that Transmission Line: it typically transports\nOwners' gas, but occasionally it carries third-party gas along with that of the\nOwners.\nThe Platform Line is now used to transport gas back to the platform for use as\nfuel for electric generators and other gas utilization needs of that facility. The\nSpark Platform's gas usage is accounted for by metering and subtraction from\nMarathon's portion of the Transmission Line's throughput.\nThe Owners' gas transported by the Transmission Line originates from the\nOwners' production wells.\nQuestion\nIs Marathon's Platform Line that now supplies gas as a fuel for the Spark\nPlatform from the Transmission Line subject to Part 192? If so, what §192.3\n\n<<<PAGE 4>>>\n\n. .\nAssociate Administrator for Pipeline Safety\nOffice of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nSeptember 29, 2008\nPage 2\ndefinition would apply to this fuel line, i.e., gathering or transmission?\nMarathon's Position\nBased on the following two interpretations issued by your office:\n• September 8, 1980, Mr. Melvin Judah, Acting Associate Director, MTB to\nMr. Raymond M. Ripple, E. I. Du Pont De Nemours & Company,\nWilmington, Delaware\n• May 19, 1983, Mr. Richard L. Beam, Associate Director, MTB to Mr. Kim\nR. Henry, Fountain Valley, California\nMarathon's opinion is that the Platform Line is not subject to Part 192, since the\nconcept expressed in both interpretations appears to apply to the conditions\nexisting at the Spark Platform. That concept is that the consumer, transporter,\nand producer are the same person, so, in effect, the consumer owns the gas as\nsoon as it is produced, or as soon as it enters the consumer-owner pipeline;\ntherefore, there is no transportation of gas between producer and consumer that\nis subject to the jurisdiction of Part 192.\nWe recognize that previous interpretations may be relied upon only by those\npersons to whom they were addressed, and it is for that reason that we now seek\nan interpretation based on the specific set of facts and circumstances provided\nherein.\nZIY, __\n-\nRichard A. Abraham\nPipeline Safety Compliance Professional\nAttachment: Installation Sketch\n\n<<<PAGE 5>>>\n\n...\n(I)\nc\n(I)\nQ. .- n.\nc\no .- t/J\nt/J .- E\nt/J\nC Platform Line\n~ t---------------~~ ~\nt/J\nca\n(!)\n'C\n(I)\n-\n~\n(I)\nQ.\no\n'-\n(I)\nC\no\n~","truncated":false,"body_characters":8849}