{"operation":"document","citation":"PI-15-0014","title":"Petersen Engineering — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2016-09-27","effective_on":null,"summary":"PI-15-0014 response to Petersen Engineering concerning 195.204.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-15-0014.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-15-0014.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-15-0014","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/2016/PI_150014.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 2 7 2016\nMr. J. Douglas Lindsay\nPrincipal Engineer\nPetersen Engineering\n8902 Vincennes Circle, Suite F\nIndianapoli s, IN 46268\nDear Mr. Lindsay:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nNovember 23 , 2015, you requested an interpretation of 49 CFR Part 195.204. You asked how\nthe requirements of § 195.204 apply to contractor serv ices and employees who work on an\ninstallation of a new interstate hazardous liquid pipeline or pipeline system for a pipeline\noperator.\nYou ask: (1) if the term \"operator personnel\" refers onl y to pipeline operator\" s personnel or its\ncontractors' personnel ; (2) if the installation inspection provision onl y applies to on-site\ninstallation work or if it appli es also to off-site installatio n work: (3) if an operator is allowed to\nassign or contract an installati on contractor or a fabricator to prov ide perso nnel and other\nspecialized inspection and testing reso urces. and what PHMSA ex pec ts of' the operator for\ninstall ation inspection of pipe. valves and other mate ri als and equipment that will be produced or\nal ready have been produced (\" in-stock\"); (4) if § 195.204 is limited to the immed iate pipe and\npipeline systems or if it extends to other construction scope, install ati ons and inspections and\ntesting; and (5) what prima facie evidence and records wi ll be sati sfactory to PHMSA to\ndemonstrate compli ance w ith § 195 .204.\nW ith regard to yo ur first question ( I), the operato r is responsible for safe operation of its\npipeline(s). Operator is defined in§ 195.2 as \"a person who owns or operates pipeline\nfac ilities.\" Person is defined in thi s section as .. any indi vidua l. firm . joint ve nture. partnership,\ncorporation, association, state, municipality. cooperative associat ion. or joint stoc k association.\nand inc ludes any trustee, receiver, assignee. or personal representative thereof.\" Therefore. the\nterm ·'operator personnel '\n. refers to both the operator·s and its contractor· s employees.\nFurthermore, any work done on behalf of the operator must comply with app li cable federal\npipeline safety regu lations.\nWith regard to your second question (2). pipeline or pipeline .) ystem is defined in § 195.2 to\nmean '·a.JI parts of a pipeline faci li ty through which a hazardous liquid or carbon dioxide moves\nin transportation. including, but not limi ted to. line pipe. valves. and other appurtenances\nconnected to line pipe, pumping units. fabricated assemblies associated with pumping units.\nmetering and de li very stati ons and fabricated assemblies therein, and breakout tanks.·· Whether\nThe Pipeline and Hazardous Materi als Safety A dmini stration. Oflice or Pipeline Safety provides written clarilications of the Regulations (49 CFR\nParts 1 90-1 99) in the form of interpretation letters. These letters rellect the agency's current appli cation of the regu lations to the spcci lie facts\npresented by the person requesting the clarification. Interpretations do not create k gall y-enlOrccable rights or obligations and are provided to\nhelp the public understand how to comply with the regulations.\n\n<<<PAGE 2>>>\n\n2\nthe construction is onsite or offsite, § 195.204 is a construction requirement and, therefore, all\noffsite work on shop-fabricated assemblies and breakout tanks must be compliant with applicable\nfederal pipeline safety regulations before installed into the pipeline system. Also, all pipeline\nand pipeline components must be visually inspected before they are installed in the pipeline\nsystem(§ 195.206).\nWith regard to your third question (3), please refer to our responses to your first and second\nquestions. That is, whether the construction is onsite or offsite, it is still the operator's\nresponsibility to comply with the federal pipeline safety regulations. The operator may use\ncontract personnel or its personnel for these inspections as long as those personnel are not\ninspecting their own work.\nWith regard to your fourth question ( 4), the § 195.204 requirements are to ensure the installation\nof pipe or pipeline systems in accordance with the requirements of Subpart D - Construction. As\nwe previously mentioned, the term pipeline or pipeline system is defined in § 195 .2 as all parts of\na pipeline facility through which a hazardous liquid or carbon dioxide moves in transportation.\nThe term pipeline facility is also defined in§ 195.2 as \"new and existing pipe, rights-of-way, and\nany equipment, facility, or building used in the transportation of hazardous liquids or carbon\ndioxide.\" Therefore, this section' s requirements include all construction, installations,\ninspections, and testing that may affect all parts of a pipeline facility.\nWith regard to your last question (5), an operator must maintain the records necessary to\ndemonstrate compliance with the applicable regulations including required inspections or\ntraining and qualifications.\nIf we can be of further assistance, please contact Tewabe Asebe at 202-366-5523.\nSincerely,\nDirector, Standards and\nRulemaking Division\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations\n(49 CFR Parts 1 90-1 99) in the form of interpretation letters. These letters refl ect the agency's current application of the regul ations to the\nspecific facts presented by the person requesting the clarification. Interpretations do not create legall y-enfo rceable rights or obligations and\nare provided to help the public understand how to comply with the regulations.\n\n<<<PAGE 3>>>\n\n-P-T RS_N.\"\nENGINEERING\nNovember 23, 2015\nMr. John A. Gale\nDirector, Office of Standards and Rulemaking\nPipeline and Hazardous Materials Safety Administration\n1200 New Jersey Avenue, SW (East Building)\nWashington, DC 20590\nRE: Request for Interpretation\n§195.204 -Inspection -General\nDear Mr. Gale:\nGuidance is appreciated on how the construction inspection regulation, as provided by\n§195.204, may be involved for an installation of a new interstate, hazardous liquid\npipeline or pipeline system for a new operator or an existing operator that employs\ncontract services, general contractors or fabricators to supply inspection.\nOperator Personnel\nAs written, the regulation only governs \"operator personnel\" regarding training,\nqualifications, inspections and tasks. Does the term \"operator personnel\" refer only to\npersonnel under the control or employment by the operator and not to personnel that\nmay be employed or under hire by construction contractors or fabricators?\nInstallation Inspection\nThe regulation addresses only installation inspection.\n1. Does the installation inspection provision only apply to on-site installation or\ndoes it apply also to off-site installation work for shop-fabricated assemblies\n(e.g., metering and delivery stations) and breakout tanks (e.g, API12F for shop\nassembled tanks)?\n2. What is expected of the operator for installation inspection of pipe, valves and\nother materials and equipment that will be produced or already has been\nproduced (\"in-stock\")?\nContractual Inspection Limitations\nIs an operator allowed to assign or contract an installation contractor or a fabricator to\nprovide personnel and other specialized inspection and testing resources including\nspecialized, \"third-party\" inspection (e.g., NDE), pressure testing, and Ill and caliper tool\n!'I\nI •\n~ I I :\nI •\n.. ,.\n\n<<<PAGE 4>>>\n\n-P=T RS-N \"\nENGINEERING\nRequest for Interpretation\nNovember 23, 2015\nPage 2\nservices that are not directly involved with the installation? Operators may not have\nsufficient direct employees and resources to conduct or manage all phases of\nconstruction inspection and must contract that work directly or through a general or\ninstalling contractor or fabricator or such inspections can be more efficiently managed\nlogistically by a contractor or fabricator.\nExtent\nThis section is located under Subpart D of Part 195. Sections 195.200 and 202 specify\nthe respective scope and compliance with specifications and standards for this Subpart.\nIs §195.204 limited to the immediate pipe and pipeline systems or does it extend to\nother construction scope, installations and inspections and testing to include pipeline\nfacility electrical and control systems and wiring, foundations, computational pipeline\nsystems, cathodic protection, SCADA and control room systems, and ancillary\nequipment, and painting as may be governed by other subparts?\nPrima Facie Evidence\nWhat prima facie evidence and records will be satisfactory to PHMSA to demonstrate\ncompliance with §195.204?\nI do agree that appropriate inspections are an important means to ensure the safety,\nintegrity and productive operations of pipelines.\nAn expeditious, but thorough, response is greatly appreciated. lfthere any questions,-\nplease feel free to contact me at your earliest convenience. I may be contacted at\ndlindsay@pei-engineering.com or (317} 217-1701, ext. 115 to facilitate discussions.","truncated":false,"body_characters":9132}