{"operation":"document","citation":"PI-15-0008","title":"Caelus Energy Alaska, LLC — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2016-02-10","effective_on":null,"summary":"PI-15-0008 response to Caelus Energy Alaska, LLC concerning 195.446.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-15-0008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-15-0008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-15-0008","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2016/PI_150008.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\nMr. John A. Jacobi\nG2 Partners\nRepresenting Caelus Energy Alaska, LLC\n10850 Richmond A venue, Suite 200\nHouston, TX 77042\nDear Mr. Jacobi:\n1200 New Jersey Avenue, SE\nWashington, D.C. 20590\nFEB 10 2016\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nOctober 2, 2015, you requested an interpretation of 49 CFR § 195.446 requirements for pipeline\ncontrol room management. You asked ifthe requirements of§ 195.446 apply to the operation of\na pipeline operated by Caelus Energy Alaska that transports diesel fuel (the \"Oooguruk line\").\nYou stated the following:\n• The line has no sensors or remote controlled valves \"outside the fence\" of the facility\nwhere it originates that affect or could affect the 2-inch diesel line;\n• All control functions are performed by personnel with other assigned functions at the\nOooguruk tie-in pad or at the Oooguruk drill site;\n• The 2-inch diesel line is used only intermittently and for short periods of time (usually\nonly a few hours). When the 2-inch diesel line is in use (either diesel fuel or base oil), it\nis operated by locally monitoring pressures and flow rates;\n• The monitoring is typically not continuous;\n• Automatic pressure and/or flow controls (local) are not attached directly to the pipeline\nto protect the line;\n• Caelus has the ability to monitor overall operation of the production facility but not to\nremotely monitor and operate the 2-inch diesel line; and\n• Caelus has no personnel in a control room using a SCADA system to monitor and\ncontrol operation of the 2-inch diesel line.\nSpecifically, you asked whether the requirements of§ 195.446 apply to the Oooguruk 2-inch\ndiesel line.\nSection 195.446 requirements apply to an operator of a pipeline facility \\Vi th a controller\nworking in a control room who monitors and controls all or part of a pipeline facility through a\nSC ADA system. From the information you provided, it appears that the 2-inch diesel line is\nisolated from the control system for the overall operation of the Oooguruk facilities for\nmonitoring purposes. Therefore, if the facility's control room and controllers are not used to\nmonitor the 2-inch diesel line, the§ 195.446 requirements do not apply to the operation of this\nline.\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\nOn the other hand, if the facility's control room and controllers are used to monitor the 2-inch\ndiesel line, no matter how infrequently the line is used, Caelus must comply with the\nrequirements of§ 195.446.\nIf we can be of further assistance, please contact Tewabe Ase be at 202-366-5523.\nSincerely,\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\nOctober 2, 2015\nMr. John Gale, Director via e-mail\nStandards & Rulemaking Hard copy via\nOffice of Pipeline Safety USPS\nPipeline and Hazardous Materials Safety Administration (PHP-30)\nU.S. Department of Transportation\n1200 New Jersey Avenue S.E.\nWashington, DC 20590-0001\nRe: Request for Written Interpretation\nApplicability of Control Room Management (195.446)\nDear Mr. Gale:\nCaelus Energy Alaska, LLC owns and operates a production facility (Oooguruk) in Alaska. While Caelus\nrespectfully disagrees with PHMSA’s interpretation that a 2” pipe that is used solely for the production of crude,\nis an integral part of the production facilities, used only intermittently to move diesel fuel to a man-made island\nto provide well freeze protection and fuel to a generator necessary for production or only intermittently used to\nmove base oil to be injected into the well as part of the drilling process is somehow “in the stream of regulated\ntransportation” (see PI-14-0022 dated March 11, 2015), Caelus hereby requests a written interpretation\nregarding the applicability of 49 CFR §195.446 to the Oooguruk 2” diesel line.\nPrior Interpretation\nOn April 2, 2015, PHMSA issued a written Interpretation to EnVen Energy Ventures, LLC (PI-15-0001) regarding\nthe applicability of 49 CFR 195.446 to certain off-shore operations. More specifically, at the bottom of page 4\nthe following language appears:\n“However, you stated that the off-shore platform operators have not been charged with the\nresponsibility of remotely controlling the pipeline. Also, all control actions are either performed by the\nautomated logic programmed into the SCADA or locally operated with manual on/off switches at the\npipeline components. In addition, at the land-based facility, there are three locally controlled valves\nused for normal flow and pig receiving. Therefore, for the off-shore application, as long as the persons\non the platform exclusively operate equipment on the platform (which may include pipeline pumps,\nvalves, and pressure control equipment located on the platform), and do not control the pipeline\ndownstream, they are not considered to be controllers subject to the CRM rule.” (emphasis added)\nThe Oooguruk Situation\nWith respect to the aforementioned Oooguruk 2” diesel line:\n1. There are no sensors or remote controlled valves “outside the fence” that affect or could affect the 2”\ndiesel line.\n2. All control functions are performed by personnel with other assigned functions at the Oooguruk tie-in\npad or at the Oooguruk drill site (both locations are part of an integrated production facility).\n\n<<<PAGE 4>>>\n\n3. The 2” diesel line is used only intermittently and for short periods of time (usually only a few hours).\n4. When the 2” diesel line is in use (either diesel fuel or base oil), proper function is assured by locally\nmonitoring pressures and flow rates.\n5. The monitoring is typically not continuous. Automatic pressure and/or flow controls (local) not attached\ndirectly to the pipeline serve to protect the line.\n6. Caelus has the ability to monitor overall operation of the production facility but not to remotely monitor\nand operate the 2” diesel line.\n7. Caelus has no personnel in a control room using a SCADA system to monitor and control operation of\nthe 2” diesel line.\n8. Transfer of diesel fuel or base oil using the 2” diesel line is performed by operating technicians with\ndirect access to the relevant gauges and controls.\n9. The relevant gauges and controls are all “inside the fence” of the production facility and none are\nlocated on the pipeline itself.\nBased on these circumstances, please confirm that the CRM requirements under 195.446 would NOT apply.\nPlease let me know if additional information is needed (john.jacobi@g2-is.com or via cell phone 832-712-3098).\nYour prompt attention to this matter would be greatly appreciated.\nSincerely,\nJohn A. Jacobi, P.E., J.D.\nRepresenting Caelus Energy Alaska, LLC\ncc: Mr. J. Patrick Foley, Caelus Energy LLC","truncated":false,"body_characters":7672}