{"operation":"document","citation":"PI-11-0014","title":"Bose McKinney & Evans LLP — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2012-08-27","effective_on":null,"summary":"PI-11-0014 response to Bose McKinney & Evans LLP concerning 191.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-11-0014.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-11-0014.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-11-0014","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretations/Pipeline/2012/Indiana%20PRC-PI-11-0014-03-27-2012-Parts%20191%2C%20192%2C%20199.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department of Transportation\nPipeline and Hazardous Materials\nSafety Administration\n1200 New Jersey Ave, S.E.\nWashington, D.C. 20590\nMAR 17 201£\nMr. Robert V eneck\nExecutive Director\nIndiana Utility Regulatory Commission\n101 West Washington Street\nSuite 1500 East\nIndianapolis, IN 46204-3407\nDear Mr. Veneck:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nAugust 30, 2011, you asked for an interpretation of a master meter under 49 CFR Part 191.\nBased on the definition of a \"master meter\" as defined in 49 CFR § 191 .3, you believe that the\npipeline downstream from the local distribution company (LDC) should be regulated by the\nFederal pipeline safety regulations because the apartment complex owners are operating natural\ngas distribution systems.\nYou stated that the property in question includes approximately twenty buildings. each having\nfive to seven residential units that are served by natural gas from the local distribution company\n(LDC). There is a meter, owned by the LDC. at the end of each of these buildings: the apartment\nowner's piping downstream from the meter goes back underground and around the back of the\nbuilding to each unit. The piping for each tenant's individual unit proceeds to a riser where it\nenters the building for each individual ultimate customer, the tenant. There is a minimum of\n12,293 feet of underground natural gas piping owned by the apartment complex owners that is\nlocated adjacent to and around the length of the twenty serviced buildings.\nAlso, you stated that the apartment complex owners, and the Indiana Apartment Association,\ndispute your determination because there are not multiple buildings being served by a single\nmeter. By the fact that there is a single meter per building. they insist that they are not, by\ndefinition, master meter operators. Therefore, you request a detem1ination by PHMSA regarding\nthe status of the owners of this apartment complex whether they are considered natural gas\noperators and are subject to Federal and state pipeline safety regulations.\nUnder 49 CFR § 191.3, a master meter system is defined as follows:\nMaster Meter System means a pipeline system for distributing gas within, but not limited\nto, a definable area, such as a mobile home park, housing project, or apartment complex,\nwhere the operator purchases metered gas from an outside source for resale through a gas\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\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\nas by rents;\nAlso, under 49 CFR § 192.3, an operator is defined as follows:\nOperator means a person who engages in the transportation of gas.\nIn this case, the apartment complex owners are operating the pipeline which provides gas to their\ntenants and, therefore, are engaged in the transportation of gas. The pipelines downstream of the\nmaster meter used to distribute the gas to the tenants are considered mains and service lines\nsubject to the Federal pipeline safety regulations. We consider the mains and service lines\ndownstream from the LDC master meter (whether or not there are multiple buildings being\nserved by a single meter) to be a distribution system that is subject to the Federal pipeline safety\nregulations in 49 CFR Parts 191 and 192.\nI hope that this information is helpful to you. If I can be of further assistance, please contact me\nat 202-366-4046.\n0\nDirector, Office of Standards\nand Rulemaking\nThe Pipeline and Hazardous Materials Safety Administration, Otlice of Pipeline Safety provides written clarifications of the Regulations\n(49 CFR Parts !90-199) 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\nSEP ·o 6 2011\nSTATE INDIANA\nINDIANA UTJLLTY REGULATORY COMMISSION\nI 01 WEST WASHlNGTON STREET, SUITE 1500 EAST\nlNDIANAPOLTS, INDIANA 46204-3407\nhttp://www.in.gov/iurc\nOffice: (317) 232-2701\nFacsimile: (3 17) 232-6758\nAugust 30, 2011\nMr. Jeffrey D. Wiese, Associate Administrator\nPipeline & Hazardous Materials Safety Administration\nUS Department of Transportation\n1200 New Jersey Ave, SE\nEast Building, 2nd Floor\nWashington, DC 20590\nDear Mr. Wiese:\nThe Pipeline Safety Division of the Indiana Utility Regulatory Commission requests an\ninterpretation of 49 CFR 191.3 regarding master meter natural gas systems.\nYou can also expect to receive a similar request on behalf of the Indiana Apartment Association.\nThere is an apartment complex in our state whose owners dispute our determination that they are\noperating natural gas distribution systems and therefore should fall under our jurisdiction and the\nrequirements found in 49 CFR 191 and 192, and 40 and 199, and 170 lAC 5-3.\nThe property in question includes approximately twenty buildings, each having five to seven\nresidential units that are served by natural gas from the local distribution company (LDC). There is\na meter, owned by the LDC, at the end of each of these buildings; the apartment owner's piping\ndownstream from the meter goes back underground and around the back of the building to each unit.\nThe piping for each tenant's individual unit proceeds to a riser where it enters the building for each\nindividual ultimate customer, the tenant. There is a minimum of 12,293 feet of underground natural\ngas piping owned by the landlord which is located adjacent to and around the length of the twenty\ngas serviced buildings.\nThe property owners, and the Indiana Apartment Association, dispute our determination because\nthere are not multiple buildings being served by a single meter. By the fact that there is a single\nmeter per building, they insist that they are not, by definition, master meter operators.\nThe Pipeline Safety Division maintains that the apartment complex owners fall under the definition\nof 49 CFR 191.3, and, because they are providing natural gas to their residents and recovering their\ncost through rents, they are operating natural gas distribution systems. Further, there is the fact that\nthe property owner's piping is all underground, which, in our opinion, increases risk for the\nresidents.\n\n<<<PAGE 4>>>\n\nAs I requested in the beginning of this letter, we request a determination from PHMSA regarding the\nstatus of the owners of this apartment complex as natural gas operators and subject to federal and\nstate pipeline safety laws. You should know that there are other apartment complexes in Indiana and\nlikely nation-wide, with similar piping configurations. It would no doubt be helpful for all if you\ncould clarify this situation for all similar apartment complexes.\nThank you for your consideration of this matter.\nRobert Veneck, Executive Director\nIndiana Utility Regulatory Commission\nRV/bh\nEnclosures\n2\n\n<<<PAGE 5>>>\n\n05/19/2011 15:42\n\n<<<PAGE 6>>>\n\n05/19/2011 15:40\n\n<<<PAGE 7>>>\n\n4917\n4915\n4907\n4905\n05/19/2011 15:43\n4901\n\n<<<PAGE 8>>>\n\n05/19/2011\n15:39","truncated":false,"body_characters":7715}