{"operation":"document","citation":"PI-10-0024","title":"XTO Energy, Inc. — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2011-07-12","effective_on":null,"summary":"PI-10-0024 response to XTO Energy, Inc. concerning 192.1, 192.5.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-10-0024.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-10-0024.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-10-0024","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretations/Pipeline/2011/XTO%20Energy-PI-10-0024-07-12-2011%20Part.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\nJUL 1 2 2011\nMs. Alice Ratcliffe\nDOT Compliance Specialist\nXTO Energy, Inc.\n810 Houston Street\nFort Worth, TX 76102-6298\nDear Ms. Ratcliffe:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), you asked\nfor an interpretation of 49 CFR 192.1 (b )(S)(ii) and 192.S(b)(1 )(i). Specifically, you asked\nwhether or not your pipeline system located in and near Cook Inlet, Kenai, Alaska is subject to\nthe Federal Pipeline Safety Regulations. You believe that §§ 192.1 (b )(S)(ii) and 192.S(b)(1 )(i)\nprovide your pipeline with exclusion from the Federal Pipeline Safety Regulations and, therefore,\nyou eliminated the pipeline from your 2009 calendar year annual reporting requirements.\nYou stated that this pipeline was previously utilized for transportation of produced oil and water\nfrom your platforms to an onshore facility through two 8.62S-inch pipelines. In 200S, you\nstated, one of the two 8-inch pipelines was converted to transport natural gas from shore to the\nplatforms for heating and other platform usage. You purchase the natural gas from Marathon\nand transport the natural gas through a 2-inch pipeline owned and operated by XTO which\nconnects to the existing 8-inch subsea pipeline. Since XTO has decided to designate this 8-inch\npipeline for natural gas transportation, it is the intention of XTO to permanently remove it from\nthe liquid annual report, integrity management, and other liquid pipeline reporting and\ncompliance requirements in 49 CFR Part 19S.\nYou stated that the pipeline should also be exempted from the Part 192 requirements because:\n1. \"The pipeline transports only petroleum gas, supplies gas to a single customer (XTO) and\nthe onshore portion of the pipeline is located completely on the premises of the customer.\nThus, according to 49 CFR § 192.1 (b)( S)(ii), this pipeline would not be subject to Part\n192,\" and\n2. The American Petroleum Institute Recommended Practice 80 (API RP 80), \"incorporated\nby reference, indicates that fuel return pipelines used to support production operations are\nclassified as \"gathering\" and further, gathering F AQ #8 confirms this interpretation.\"\nSection 192.S(b)(1 )(i) reflects that offshore pipelines are considered Class 1, and Class 1\ngathering is exempt from Part 192 requirements.\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 ofthe 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\nAnalysis\nYour first question is whether § 192.1 (b )(5)(ii) excludes your pipeline from the Part 192\nrequirements. The exclusion in § 192.1 (b )(5)(ii) applies only to the transportation of petroleum\ngas or petroleum gas/air mixture. Your pipeline transports natural gas and therefore does not\nsatisfy the requirements of that exemption.\nYour second question is whether your pipeline is a Class 1 gathering line and therefore not\nregulated by Part 192. Section 192.3 defines a gathering line as \"a pipeline that transports gas\nfrom a current production facility to a transmission line or main.\" You purchase natural gas from\nMarathon and transport it to your platforms. The pipeline does not satisfy the definition and\ntherefore is not a gathering line. The definition of \"gathering\" in API RP 80 does not supersede\nthe definition in § 192.3.\nUnder § 192.3, a pipeline that transports gas from a transmission line to a large volume customer\nthat is not downstream from a distribution center is a transmission line. In this instance, there is\nno distribution center or transfer of operating responsibility to a distribution system. Therefore,\nthis pipeline is a transmission line, as defined in § 192.3. Moreover, you stated that the volume of\ngas transported by this pipeline is 1 mmcf/d. Large volume customers include those receiving\nthis quantity of gas.\nYou stated that since this pipeline has begun transporting natural gas, your intention is to\npermanently remove this pipeline from the liquid annual report, integrity management, and other\nliquid pipeline reporting and compliance matters required by Part 195. Please note that\nrequirements for conversion to service subject to Part 192 appear in § 192.14.\nI hope that this information is helpful to you. If I can be of further assistance, please contact me\nat 202-366-4046.\no\nDirector, Division of\nStandards and Rulemaking\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations\n(49 eFR 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\n~TO\n~~RGY\nOctober 5, 2010\nJohn Gale\nPHMSA - Office of Pipeline Safety\n1200 New Jersey Avenue\nWashington, DC 20590 - 0001\nRe: XTO Energy, Kenai, Alaska Pipeline Operations\nDear Mr. Gale:\nThank you for speaking with me this morning. As stated, I am resending a letter to specifically\nrequest an interpretation. I understand this may take four (4) to five (5) months to receive a'\nresponse.\nThis letter is to address two (2) matters associated with the operation and jurisdictional status of\na certain pipeline system located in and near Cook Inlet, Kenai, Alaska. I first sent this letter in\nMarch, 2009 to Denver, DC and Alaska and again in September, 2009 to the Associate\nAdministrator. Historical documentation is included in this correspondence.\nBackground\nXTO Energy operates multiple offshore platforms within Cook Inlet and until 2005 transported\nproduced oil and water from these platforms to an onshore facility for further processing through\ntwo (2) 8.625\" pipelines. At that pOint the decision was made to temporarily stop the\ntransportation of oil/water through one of the pipelines and in its stead to transport natural gas\nfrom shore to the platforms for heating and other platform usage. Natural gas is purchased from\nMarathon and transported from this connection through a 2\" pipeline owned and operated by\nXTO to its connection with the eXisting 8\" subsea pipeline. At that point this pipeline was\ndesignated as a \"gas\" pipeline for pipeline safety purposes.\nItem 1\nThe temporary status of this pipeline designation as a \"gas\" has been made permanent and\nthere are no immediate plans to return the pipeline to liquid service. Thus the intent of XTO is to\npermanently remove this pipeline from the liquid annual report, integrity management and other\nliquid pipeline reporting or compliance matters reference by Part 195.\nItem 2\nGiven the conditions noted in Item 1, XTO has determined that the gas pipeline qualifies for\nnon-jurisdictional status for the following reasons:\n• The pipeline transports only petroleum gas, supplies gas to a single customer (XTO) and\nthe onshore portion of the pipeline is located completely on the premises of the\ncustomer. Thus according to 49 CFR 192.1 (b)(5)(ii) this pipeline would not be subject to\nPart 192.\nXTO Energy Inc. • 810 Houston Street • Fort Worth, Texas 76102-6298 • (817) 870-2800 • Fax: (817) 870-1671\n\n<<<PAGE 4>>>\n\n• RP-80, incorporated by reference, indicates that fuel return pipelines used to support\nproduction operations is classified as \"gathering\" and further, gathering FAQ #8 confirms\nthis interpretation. Regulations at 49 CFR 192.5(b)(1)(i) reflects that offshore pipelines\nare considered Class 1 and Class 1 gathering is exempt from Part 192 requirements.\nGiven these conditions, XTO removed this pipeline from jurisdictional status and eliminated it on\nthe 2009 CY annual report.\nShould there be any questions, please call me at 817-885-2181.\ncc: Chris Hoidal, Dennis Hinnah, Jon Strawn and Tom Johnson\n\n<<<PAGE 5>>>\n\n~TO\n~~RGY\nSeptember 21, 2009\nJeff Wiese, Associate Administrator\nUD DOT/PHMSAlOPS\nPHH-1\n1200 New Jersey Avenue, SE\nEast Bldg., 2nd Floor\nWashington, DC 20590\nRe: XTO Energy, Kenai, Alaska Pipeline Operations\nDear Mr. Wiese:\nThis letter is to address two (2) matters associated with the operation and jurisdictional status of\na certain pipeline system located in and near Cook Inlet, Kenai, Alaska. I first sent this letter in\nMarch, 2009 to Denver, DC and Alaska. Your review and comments would be appreciated.\nBackground\nXTO Energy operates two offshore platforms within Cook Inlet and until 2005 transported\nproduced oil and water from these platforms to an onshore facility for further processing through\ntwo (2) 8.625\" pipelines. At that point the decision was made to temporarily stop the\ntransportation of oil/water through one of the pipelines and in its stead to transport natural gas\nfrom shore to the platforms for heating and other platform usage. Natural gas is purchased from\nMarathon and transported from this connection through a 2\" pipeline owned and operated by\nXTO to its connection with the existing 8\" subsea pipeline. This pipeline was designated as a\n\"gas\" pipeline for pipeline safety purposes.\nItem 1\nThe temporary status of this pipeline designation as a \"gas\" has' been made permanent and\nthere are no immediate plans to return the pipeline to liquid service. Thus the intend of XTO is to\npermanently remove this pipeline from the liquid annual report, integrity management and other\nliquid pipeline reporting or compliance matters reference by Part 195.\nItem 2\nGiven the conditions noted in Item 1, XTO has determined that the gas pipeline qualifies for\nnon-jurisdictional status for the following reasons:\n• The pipeline transports only petroleum gas, supplies gas to a single customer (XTO) and\nthe onshore portion of the pipeline is located completely on the premises of the\ncustomer. Thus according to 49 CFR 192.1 (b)(5)(ii) this pipeline would not be subject to\nPart 192.\n• RP-80, incorporated by reference, indicates that fuel return pipelines used to support\nproduction operations is classified as \"gathering\" and further, gathering FAQ #8 confirms\nXTO Energy Inc. • 810 Houston Street • Fort Worth, Texas 76102-6298 • (817) 870·2800 • Fax: (817) 870·1671\n\n<<<PAGE 6>>>\n\nthis interpretation. Regulations at 49 CFR 192.5(b)(1)(i) reflects that offshore pipelines\nare considered Class 1 and Class 1 gathering is exempt from Part 192 requirements.\nGiven these conditions, unless otherwise directed, XTO will remove this pipeline from\njurisdictional status and eliminate reporting it on its annual report.\nShould there be any questions, please call me at 817-885-2181.\nSincerely,\n~~\nAlice Ratcliffe\nEHS Coordinator\n\n<<<PAGE 7>>>\n\nMarch 25, 2009\nMr. Chris Hoida', Director\nPHMSA Pipeline Safety\nWestern Region\n12300 W. Dakota Avenue\nSuite 110\nLakewood, CO. 80228\nRe: XTO Energy, Kenai, Alaska Pipeline Operations\nDear Mr. Hoidal:\nThis letter is to address two (2) matters associated with the operation and jurisdictional status of\na certain pipeline system located in and near Cooks Inlet, Kenai, Alaska.\nBackground\nXTO Energy operates multiple offshore platforms within Cooks Inlet and until 2005 transported\nproduced oil and water from these platforms to an onshore facility for further processing through\ntwo (2) 8.625\" pipelines. At that point the decision was made to temporarily stop the\ntransportation of oil/water through one of the pipelines and in its stead to transport natural gas\nfrom shore to the platforms for heating and other platform usage. Natural gas is purchased from\nMarathon and transported from this connection through a 2\" pipeline owned and operated by\nXTO to its connection with the existing 8\" subsea pipeline. At that point this pipeline was\ndesignated as a \"gas\" pipeline for pipeline safety purposes.\nItem 1\nThe temporary status of this pipeline designation as a \"gas\" has been made permanent and\nthere are no immediate plans to return the pipeline to liquid service. Thus the intend of XTO is to\npermanently remove this pipeline from the liquid annual report, integrity management and other\nliquid pipeline reporting or compliance matters reference by Part 195.\nItem 2\nGiven the conditions noted in Item 1, XTO has determined that the gas pipeline qualifies for\nnon-jurisdictional status for the following reasons:\n• The pipeline transports only petroleum gas, supplies gas to a single customer (XTO) and\nthe onshore portion of the pipeline is located completely on the premises of the\ncustomer. Thus according to 49 CFR 192.1 (b)(5)(ii) this pipeline would not be subject to\nPart 192.\n• RP-80, incorporated by reference, indicates that fuel return pipelines used to support\nproduction operations is classified as \"gathering\" and further, gathering FAQ #8 confirms\nthis interpretation. Regulations at 49 CFR 192.5(b)(1)(i) reflects that offshore pipelines\nare considered Class 1 and Class 1 gathering is exempt from Part 192 requirements.\nXTO Energy Inc. • 810 Houston Street • Fort Worth, Texas 76102-6298 • (817) 870-2800 • Fax: (817) 870-1671\n\n<<<PAGE 8>>>\n\nGiven these conditions, unless otherwise directed, XTO will remove this pipeline from\njurisdictional status and eliminate reporting it on its annual report.\nShould there be any questions, please call me at 817-885-2181.\nSincerely,\n~~\nAlice Ratcliffe\nEHS Coordinator","truncated":false,"body_characters":13746}