{"operation":"document","citation":"PI-10-0004","title":"South Carolina Office of Regulatory Staff — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2010-09-17","effective_on":null,"summary":"PI-10-0004 response to South Carolina Office of Regulatory Staff concerning 192.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-10-0004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-10-0004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-10-0004","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2010/PI-10-0004.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\nSEP 1 7 2010\nMr. Vernon Gainey\nSouth Carolina Office of Regulatory Staff\nSupervisor, Pipeline Safety\n1401 Main Street, Suite 900\nColumbia, SC 29201\nDear Mr. Gainey:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nMay 11, 2010, the South Carolina Office of Regulatory Staff (ORS) requested an interpretation\nof 49 CFR § 192.1 in response to a letter ORS received from the Easley Housing Authority\n(EHA) asserting that it is not subject to the pipeline safety regulations in 49 CFR Parts 191 &\n192 as adopted by South Carolina pursuant to section 58-5-970 of the South Carolina Code of\nLaws.\nORS described the operation as follows: (1) EHA is a public housing authority that receives\nnatural gas from a metering station; (2) downstream from the metering station EHA owns and\noperates the natural gas pipeline system; (3) a gas meter was installed previously at each tenant\nhouse in the housing authority, but that metering system has been removed by the operator;\n(4) the cost of the natural gas EHA provides to each tenants is covered by the rent charged to\neach tenant. EHA contended that its natural gas pipeline system is not subject to the pipeline\nsafety regulations because it does not meter and sell gas to its tenants. ORS believes that EHA is\nsubject to the pipeline safety regulations because it transports gas in its pipeline system from the\ndistribution company's meter to the individual consumers which makes EHA a natural gas\npipeline operator.\nORS is correct that the natural gas pipeline system operated by EHA is subject to the pipeline\nsafety laws and regulations. Generally speaking, when gas is purchased at a master meter and\nthen is distributed through underground or exterior piping to others who consume the gas, the\nsystem is considered to be a gas distribution system. Operators of gas distribution systems,\nincluding master meter systems, must comply with both the reporting requirements in Part 191\nand the operating, maintenance and other requirements in Part 192.\nPursuant to 49 U.S.C. 60105, South Carolina is authorized to regulate the gas distribution\nsystems in the state. In the absence of an exemption for master meter systems in state law, this\nincludes master meter systems. Whether EHA meters and sells gas to individual customers is\nirrelevant. The piping through which gas is being transported is owned and operated by EHA.\nThis makes EHA a gas pipeline operator under the pipeline safety laws and regulations.\nAccordingly, as the operator, EHA is responsible for compliance with the pipeline safety\nregulations in 49 CFR Parts 191 and 192 as adopted by South Carolina.\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\nI hope that this information is helpful to you. If I can be of further assistance, please contact me\nat 202-366-4046.\nDirector, Office of Regulations\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations\n(49 CFR Parts 190·199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the\nspecific facts presented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and\nare provided to help the public understand how to comply with the regulations.\n\n<<<PAGE 3>>>\n\nPi-100004\nC DUKES SCOTT\nOFFICE\nEXECUTIVE DIRECTOR\nCHIEF OF STAFF\nDAN F. ARNETT\n1401 Main Street, Suite 900\nColumbia, SC 29201\nORS\nFax: (803) 737-0801\nPhone: (803) 737-0800\nJOHN W. FLITTER\nELECTRIC A GAS REGULATION\nDIRECTOR\nVERNON I GAINEY. CPM\nPIPELINE SAFETY\nSEPERVISOR\nMAY 1 2 2010\nMay 11, 2010\nMr. Jeffrey D. Wiese, Associate Administrator\nPipeline & Hazardous Materials Safety Administration\nU.S. DOT/ PHMSA/ PHP-30\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nDear Mr. Jeffrey D. Wiese:\nThe South Carolina Office of Regulatory Staff (ORS) requests an interpretation of 49 CFR 192.1 in response to\nan operator's written communication stating that the operator is not subject to the regulations of 49 CFR 191\nand 192. The operator's letter to the ORS is enclosed.\nThe operator, a housing authority, owns and operates a natural gas pipeline system downstream of a meter\nfacility from which the operator receives natural gas from a distribution company. The operator delivers natural\ngas to the tenants of the housing authority facility through its underground pipeline system. The operator does\nnot meter the natural gas it delivers to each of the tenants in the housing authority. Individual gas meters were\nin place previously and removed by the operator. The cost of the natural gas the operator provides to the\ntenants is covered by the rent charged to each tenant. It is the operator's contention that its natural gas system is\nnot regulated by federal pipeline safety regulations because it does not meter and sell gas to its tenants.\nThe ORS believes that the operator is transporting gas in its pipeline system from the distribution company's\nmeter to the individual tenants in the housing authority, which categorizes him as a natural gas system operator.\nThe ORS believes that the operator's natural gas system is subject to the pipeline safety regulations contained in\n49 CFR as stated in 49 CFR 192.1.\n\n<<<PAGE 4>>>\n\nThe ORS requests guidance in determining whether or not this facility is jurisdictional. Any written\ncorrespondence regarding this matter and/or the interpretation determination should be addressed to:\nVernon Gainey\nPipeline Safety Supervisor\nSouth Carolina Office of Regulatory Staff\n1401 Main Street, Suite 900\nColumbia, SC 29201\nYour attention to this matter is greatly appreciated.\nVernon L. Gainey, Sup\nPipeline Safety\nElectric and Gas Regulation\n\n<<<PAGE 5>>>\n\nEasley Housing Authority\n10] Wal1~lce Dri\\'~\nP.O. Box 1060\nEasley. S.c. 29641\nPh: Rfl-J-855-0629\nF\"\" 864-X55-086-l\nCOMMISSIONERS:\nWINSTON HOLTON\nIJI.rRETI.OWRANCE\nDAVID L. Mcb\\DDEI\\\nSHARON MORGAN\nDR. DANIEL LEE\nDecember 23, 2009\nMr. Vernon L. Gainey, Supervisor\nPipeline Safety\n1441 Main Street, Suite 300\nColmnbia, SC 2920 I\nDear Mr. Gainey,\nSu~iect: RULE OR REGULATION 192.807 Record Keeping\nIn reference to your request RULE OR REGULATION, 192.807 Record Keeping I am\nconcern with the classification. According to 49CRF Ch.1 (10-1-08 Edition) Ma.~ter\nMeter System are not subject to PART 192-Transportation of Natural and Other Gas by\nPipeline: Minimum Federal Safety Standards. Master Meters are subject to PART 191-\nTransportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports,\nand Safety Related Condition Reports.\n191.1 Scope.\n(b) This part does not apply to-\n(ii) Any designated residential or commercial area such as a subdivision, business or\nshopping center, or community development.\n191.3 Definitions.\nMaster Meter System means a pipeline system for distributing gas within, but not limited\nto, a definable area, such as a mobile park, housing project or apartment complex where\nthe operator purchases metered gas from an outside source for resale through a gas\ndistribution pipeline system. The gas distribution pipeline system supplies the ultimate\nconsumer who either purchases the gas directly through a meter or by other means, such\na.~ by rents.\nPipeline or Pipeline System means all parts of those physical facilities through which gas\nmoves in transportation, including, but not limited to, pipe, valves, and· other\nappurtenance attached to pipe, compressor units, metering stations, regulator stations,\ndelivery stations, holders, and fabricated assemblies.\nExecutive Director\nMARVIN STEPHENS\n\n<<<PAGE 6>>>\n\n192.3 Definitions\nCust'Omer meter means the meter that measures the transfer of gas from an operator to a\nconsumer.\nWe do not have a customer meter to measure the transfer of gas from an operator to a\ncon~umer.\nAccording to PART 191.11 Distribution Systems reporting transmission pipelines:\ntransmission or gathering system reponing distribution pipelines; there are no repons for\nMaster Meter.\nThe only information pertaining to Master Meter is found in PART 191 which conclude\nthat Master Meter does not tilll under the Minimum Federal Safety Standard alld is not\nsubject to the 192.807 Record Keeping.\nThis is the reply concerning the results of our investigation and no corrective aClion is\nnecessary at this time.\nSincerely. - L\nIf~ \" , ,-.,~--5Tc~ : · :; ~~ '· ,\n- I\nMarvin Stephens\nExecutive Director","truncated":false,"body_characters":9056}