State of Maine Public Utilities Commission — Pipeline Safety Interpretation

Page 1U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Ave, S.E. Washington, D.C. 20590 fEB 1 3 Z012 Mr. Gary A. Kenny. PE Gas Safety Manager State of Maine Public Utilities Commission 18 State House Station Augusta, ME 04 3 3 3-00 18 Dear Mr. Kenny: In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated June I 0, 2011, you asked for an interpretation on the applicability of 49 CFR 192.1 (b)(5) to a configuration of three hotel and/or motel rooms that are served by a liquefied petroleum gas (LPG) tank and its pipeline system. You provided a diagram ofthe pipeline system and described the diagram as follows: • Three hotel/motel guest rooms served by stubs off a common pipe; • Each guest room exits directly to the outside and they are not connected to any other structures; • Each stub provides LPG to a combination heating/cooling appliance in each of the guest rooms; • There are no meters; and • The tank(s). all piping. and the building are on private property. Section 192.1 (b)( 5)( i) states that Part 192 does not apply to any pipeline system that transports only petroleum gas or petroleum gas/air mixtures to fewer than 10 customers, ifno portion ofthe system is located in a public place. In the diagram given. each room would constitute a customer. Because the LPG system serves three customers which is fewer than 10, it would be exempted from the Part 192 requirements if no portion of the system was located in a public place. However, churches, schools and commercial buildings are considered to be public places under the regulations. Hotels/motels are The Pipeline and Hazardous Materials Safet\ Admmistratlon. Otlice or P1pel10e Satctv provides written clanfications of the Regulations (49 CFR Parts 190-199) in the tiJrm of interpretation letters. These letters retlect the agenq'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 22 commercial buildings and. therefore. are public places. The diagram does not meet the exemption and the system would be a regulated system. I hope that this information is helpful to you. If I can be of further assistance, please contact me at (202) 366-4046. Sincerely. Director, Office of Standards and Rulemaking The Pipeline and Hazardous Materials Safety Administration. Oftice of Pipeline Safety provides written clarifications of the Regulations ( 49 CFR Parts 190-199) in the tr1rm 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 regula(ions.#

Page 3STATE OF MAINE PUBLIC UTILITIES COMMISSION THOMAS L WELCH CHAIRMAN VENDEAN V. VAFIADES DAVID P. LITTELL COMMISSIONERS KAREN GERAGHTY ADMINISTRATIVE DIRECTOR June 10, 2011 Mr. Jeffery D. Wiese Associate Administrator for Pipeline Safety Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Ave., S.E. Washington, D:C. 20590 RE: Interpretation of 49 CFR, Part 192, §192.1(b)(5) Dear Mr. Wiese: Earlier this year, the Maine Public Utilities Commission advised you of legislation proposed by propane suppliers in conjunction with the Maine Energy Marketers Association (MEMA) regarding the safety jurisdiction over liquefied petroleum gas (LPG) distribution systems. The Maine State Legislature's Energy, Utility and Technology Committee has requested that MPUC staff work with MEMA representatives to develop a mutual understanding of the scope of enforcement of 49 CFR, Part 192, §192.1 (b )(5). Specifically, we are seeking PHMSA's opinion regarding the jurisdiction of hotel and/or motel rooms that are served by LPG distribution systems. Attached you will find a diagram of a scenario developed by MPUC staff and MEMA representatives which includes the specifics of the opinion requested. Your assistance on this matter will be greatly appreciated. Sincerely, Gary A. Kenny, P.E. Gas Safety Manager cc: Jamie PY, MEMA Carl Bisson, MEMA Attachment WCATION: 101 Second Street, Hallowell, ME 04347 PHONE: (207) 287-3831 (VOICE) MAIL: 18 State House Station, Augusta, ME 04333-0018 TTY: 1-800437-1220 FAX: (207)287-1039#

Page 4Attachment to June 10, 2011 Letter to Mr. Jeffery D. Wiese The following scenario has been developed by MPUC staff and MEMA representatives: / / / o T o o Please provide an opinion if the LPG distribution system sketched above is under the safety jurisdiction of 49 CFR, Part 192 as defined by the exclusions in §192.1(b)(5) and based on the following criteria: • Three hotel/motel guest rooms served by stubs off a common pipe. • Each guest room exits directly to the outside and they are not connected to any other structures. • Each stub provides LPG to a combination heating/cooling appliance in each of the guest rooms. • There are no meters. • The tank(s), all piping and the building are on private property. LOCATION: 101 Second Street, Hallowell, ME 04347 MAIL: 18 State House Station, Augusta, ME 04333-0018 PHONE: (207)287-3831 (VOICE) TTY: 1-800-437-1220 FAX: (207) 287-1039#