{"operation":"document","citation":"PI-09-0022","title":"Kansas Corporation Commission — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2010-03-08","effective_on":null,"summary":"PI-09-0022 response to Kansas Corporation Commission concerning 192.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0022.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0022.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-09-0022","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2009/PI-09-0022.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\nMAR - 8 2010\nMr. Leo M. Haynos\nChief of Gas Operations & Pipeline Safety\nKansas Corporation Commission\n1500 SW Arrowhead Road\nTopeka, KS 66604\nDear Mr. Haynos:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nNovember 10,2009, you requested PHMSA's views on an interpretation you drafted in response\nto a written request from Gardner Energy dated September 4,2009, for reconsideration of a\ndetermination by the Kansas Corporation Commission (KCC) that the 1.2 mile high pressure gas\npipeline it operated was a regulated transmission line.\nIn its letter, Gardner Energy, the electric utility serving the City of Gardner, stated that the 1.2\nmile high pressure gas line connects a Southern Star high pressure natural gas transmission line\nto two combustion turbine generators. The line is a 6\" diameter steel coated pipe. The metering\npoint is at the tap. The turbines, which are in standby mode 365 days each year, are the sole load\nconnected to the line; therefore, the only time that gas flows in the pipe is during operation of the\nturbines. Gardner Energy stated that the turbines were used solely for \"peaking\" and as a result,\ntheir operation was very limited and amounted to only 2,375.5 million cubic feet (MMCF) in\n2008 and 13,133 MMCF in 2009. Based on this limited operation, Gardner contended that the\npipeline should be considered to be an unregulated service line.\nUnder 49 CFR § 192.3, a transmission line is defined as:\n\"a pipeline, other than a gathering line, that: (1) transports gas from a gathering\nline 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\nstress of 20 percent or more of SMYS; or (3) transports gas within a storage\nfield. \"\nBased on the information provided by Gardner Energy, the line is a transmission line. We\nrecognize that the frequency of operation of the turbines has only been occasional to date, but\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written\nclarifications of the Regulations (49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect\nthe agency's current application of the regulations to the specific facts presented by the person requesting the\nclarification. Interpretations do not create legally-enforceable rights or obligations and are provided to help the\npublic understand how to comply with the regulations.\n\n<<<PAGE 2>>>\n\n2\nthis does not change the pipeline classification. Since the definition of a transmission line is met\nif anyone of the three conditions in the definition is satisfied, the line meets the definition of a\ntransmission line for the reasons stated in KCC's draft response to Gardner. We agree with KCC\nthat the turbine power plant is a large volume customer for purposes of the transmission line\ndefinition despite the limited use of the turbines to date. A power plant can potentially be used\nyear around and the maintenance and operating requirements for a pipeline supplying a power\nplant are consistent with other transmission pipelines, not service lines in a distribution system.\nAccordingly, we agree with KCC that the above-described 1.2 mile pipeline meets the definition\nof a regulated transmission line.\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\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written\nclarifications of the Regulations (49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect\nthe agency's current application of the regulations to the specific facts presented by the person requesting the\nclarification. Interpretations do not create legally-enforceable rights or obligations and are provided to help the\npublic understand how to comply with the regulations.\n\n<<<PAGE 3>>>\n\nGardner Energy\n1150 E. Santa Fe I Gardner, KS 66030\n(913) 856-7256\nNovember 20, 2009\nMr. John Gale\nU.S. Department of Transportation\nPipeline & Hazardous Materials Safety Administration\nEast Building, 2nd Floor\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nDear Mr. Gale,\nI represent Gardner Energy (GE) in Gardner, Kansas. About twenty years ago GE\nconstructed a high pressure natural gas line which serves two combustion turbine\ngenerators that are typically used only in the summer months for \"peaking\". Over the\nyears GE maintained and operated this line without incident. Earlier this year, we were\nnotified by the Kansas Corporation Commission (KCC) that the line fits into the definition\nof TRANSMISSION. As a result, GE has begun the effort and expense of becoming\ncompliant with this new classification.\nOn September 4, 2009, I appealed to the KCC (see attached) and requested the line be\nreclassified to a service. I recently received the attached response from Leo Haynos,\nChief of Gas Operations and Pipeline Safety. My request was denied. However, Mr.\nHaynos indicated in the letter that he was copying you with his correspondence and\nrequesting your interpretation of our gas pipeline installation and scenario. The purpose\nof my letter is to provide all of the necessary backgroul1d information to assist with your\ndecision.\nGardner Energy certainly wants to continue to utilize this line safely and without incident\nto generate electricity and meet the needs of thisjcommunity. We have been very\nsuccessful in these efforts for over twenty years: My cqncern is whether the significant\nexpense and effort now required by the new TRANSMISSION classification are really\nnecessary and how they could improve on a flawless record of operation.\nWU~T~\nW.C. (Bill) Krawczyk, P.E.\nElectric Director\n\n<<<PAGE 4>>>\n\nCORPORATION COMMISSION\nMark Parkinson, Governor\nThomas E. Wright, Chairman\nMichael C. Moffet, Commissioner\nJoseph F. Harkins, Commissioner\nNovember 10, 2009\nBill Krawczyk\nElectric Director\nGardner Energy Center\n1105 Santa Fe\nGardner KS 66030\nRe: Jurisdictional Status of High Pressure Gas Line Serving the Combustion Turbine Generators\nat the Gardner Energy Center\nDear Mr. Krawczyk:\nI received your letter dated September 4, 2009 requesting an interpretation on the function of the\ngas pipeline that serves your combustion generator facility. In your letter, you suggested the\npipeline should be considered as a long service line instead of a transmission pipeline. In my\nopinion, the subject pipeline meets the definition of a transmission pipeline because it serves a\nlarge volume customer not located downstream of a distribution center. As such, the KCC Staff\nexpects the City of Gardner tobe in full compliance with the Kansas pipeline safety regulations\nfor transmission pipelines found in K.A.R. 82-11-4.\nherefore, the gas pipeline regulations in Part 192 are applicable from the transmission line tap to\nthe point where the lateral pipeline enters plant grounds\nIn your letter, you noted the pipeline in question is typically at operating pressure but gas is not\nflowing through the line except when the standby generators are activated.\nAnalysis\nPipeline safety regulations prescribe minimum safety requirements for pipeline facilities used for\nthe transportation of gas. In your case, the transportation of gas can be defined generally as\nmovement of natural gas from the Southern Star sales point to the city property on which the\ngenerators are located, (e.g., land associated with plant processes, usually indicated by a security\nfence) and to any facilities on the plant grounds that are necessary to control the pressure or\nsafety of the pipeline. As pointed out in your letter, the classification of the function of the\npiping determines which portion of the regulations will apply to your pipeline facilities used for\nthe transportation of gas. Please note that a service line ends where the pipeline connects to a\nmeter or to the end-user's, (ie customer's) piping. The definition implies the endpoint of a\nservice line is at some point where the transportation of gas has ended. Because the piping in\nquestion is a pipeline used for the transportation of gas, I believe the definition of service line\n1500 SW Arrowhead Road, Topeka, KS 66604-4027 • (785) 271-3100 • Fax: (785) 271-3354 • http://kcc.ks.gov/\n\n<<<PAGE 5>>>\n\nwould not apply. The next iteration in the analysis would be to determine if the pipeline in\nquestion is performing the function of distribution or transmission.\nThe definitions of distribution line, service line and transmission line are as follows:\nDistribution Line means a pipeline other than a gathering or transmission line.\nService line means a distribution line that transports gas from a common source of supply to\nan individual customer. .. A service line ends at the outlet of the customer meter or at the\nconnection to a customer's piping, whichever is further downstream, or at the connection to\ncustomer piping if there is no meter.\nTransmission line means a pipeline, other than a gathering line, that:\n(a) Transports gas from a gathering line or storage facility to a distribution center,\nstorage facility, or large volume customer that is not down-stream from a distribution\ncenter;\n(b) operates at a hoop stress of 20 percent or more of SMYS; or\n(c) transports gas within a storage field.\nNote: A large volume customer may receive similar volumes of gas as a distribution center,\nand includes factories, power plants, and institutional users of gas.\nIn order to prove the line is a distribution line, the analysis must prove the subject line is not a\ntransmission line. Therefore, the next step in the analysis is to test the applicability of the\ndefinition of a transmission line. From the note attached to the federal definition of a\ntransmission line, it is clear that a power plant is considered to be a large volume customer. Once\nthat fact is established, the analysis must decide if the large volume customer is downstream of a\ndistribution center. Pipeline safety regulations do not define this term. However, a past\ninterpretation by the U.S. Department of Transportation provides the opinion that a distribution\ncenter is that point where gas enters piping used primarily to deliver gas to customers who\npurchase it for consumption as opposed to customers who purchase it for resale. It is my\nunderstanding that Gardner's pipeline is connected directly to Southern Star transmission line.\nAlthough Gardner purchases the gas for consumption, the tie-in point at Southern Star is not\nconnected to piping that primarily supplies gas for consumption. For example, if the Gardner\npipeline was connected to piping operated by the local distribution company, the pipeline would\nbe considered an extension of q distribution main. Hpwever, in the case at hand, the function of\nthe Gardner piping is an extension of the transmission function supplied by Southern Star.\nTherefore, in my opinion, the piping in question is not downstream of a distribution center.\nBecause the City of Gardner is a large volume customer by definition, and the pipeline\nsupplying the city is not downstream of a distribution center, the pipeline serving Gardner from\nthe Southern Star tap to the combustion turbines is a transmission pipeline regardless of the\nannual volumetric throughput or the operating pressure of the line.\n\n<<<PAGE 6>>>\n\n· '\nPlease note the above is my opinion. For a second and definitive answer to your question, I am\ncopying this letter to Mr. John Gale with the U.S. Department of Transportation and requesting\nhis interpretation of this scenario.\nSinCere y {? -11,\nLeo M. Hay, s\nChief of Gas Operations & Pipeline Safety\n\n<<<PAGE 7>>>\n\n_______________________________________________________________________\nGARDNER\nConnecting TheComnnmlty\nGardner Energy Center\n1150 E. Santa Fe I Gardner, KS 166030\nSeptember4, 2009 XiJR1UCSJ\nMr. Leo Haynos SEP S DUE\nKansas Corporation Commission\n1500 SWArrowhead Road 111 flIEs DIi'\nTopeka, Kansas 66604-4027\nDear Leo,\nGardner Energy, the electric utility serving the City of Gardner, was recently audited by\na memberof your staff. Jim Gorman, an inspector in the Pipeline Safety Division, met\nwith me and members of my staff regarding a gas line owned and operated by the City.\nIn 1990 the City constructed approximately 1.2 miles of high pressure gas line in\nconjunction with the installation of two combustion turbine generators. The line, which\nis located in a 20' wide easement, is a 6\" steel coated pipe. It connects to a Southern\nStar high pressure natural gas transmission line on the southeast corner of the City.\nThe metering point is at the tap. The turbines, which are in standby mode 365 days\neach year, are the sole load connected to the line. Therefore, the only time that gas\nflows in the pipe, is during operation of the turbines.\nFor many years, the City performed routine maintenance on the line, but otherwise gave\nvery little thought and/or attention to it. Weassumed that this pipeline was nothing\nmore than a long \"service\" line. However, the Kansas Corporation Commission's\nPipeline Safety Division has recently changed that priority. We have been informed the\nfacility meets the definition of a \"transmission\" line and is therefore subject to\nDepartment of Transportation DOTregulations. I have reviewed the formal definitions\nof a \"distribution\" line, \"service\" line and \"transmission\" line as provided in the Kansas\nPipeline Safety Regulations. I would contend that our pipeline does not meet the\ncriteria for a \"transmission\" line. Criterion aof the definition refers to a large volume\ncustomer. Based on the usage pattern of this equipment, Gardner Energy is not a large\nvolume customer.\nSince our turbines are used solely for \"peaking\", their operation is very limited. The\nturbines, which are only operated a few times a year, are connected to the end of a long\n\"service\" line that is metered at the source of supply. In 2008, the turbines were\noperated only one day for a total of 13 hours. The total gas usage for that day was\n2,375.5 MCF. In 2009, the turbines were operated seven days for a total of 62 hours.\nThe total gas usage for those hours was 13,133 MCF. Therefore, on average Gardner\nEnergy only used 7,754.25 MCF of natural gas per year or 646.19 MCF per month.\n\n<<<PAGE 8>>>\n\nI respecifully request that the KCC Pipeline Safety Division reconsider Gardner\nEnergy's pipeline classification. I believe the above information supports my position\nand clearly demonstrates that our pipeline meets the definition of a \"service\" line.\nSincerely,\noeeK\nBill Krawczyk\nElectric Director\n913-856-7256","truncated":false,"body_characters":14825}