{"operation":"document","citation":"PI-17-0004","title":"Pierce Atwood — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2018-09-10","effective_on":null,"summary":"PI-17-0004 response to Pierce Atwood concerning 195.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-17-0004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-17-0004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-17-0004","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/68406/pierce-atwood-pi-17-0004-09-10-2018-part-195-1.pdf","body":"<<<PAGE 1>>>\n\n0\nUS. Department\nofTransportation\nPipeline and Hazardous Materials\nSafety Administration\nSEP 1 0 2018\n1200 New Jersey Avenue SE\nWashington DC 20590\nMr. Richard S. Novak\nPierce Atwood\n100 Summer Street\nBoston, MA 02110\nDear Mr. Novak:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (\"PHMSA\") dated\nJanuary 31, 2017, you requested an interpretation of 49 CFR Part 195. You specifically\nrequested an interpretation regarding the applicability of§ 195.1 to a Calpine Fore River Energy\nCenter LLC (\"CFREC\" or \"Calpine\") fuel oil pipeline.\nYou described the Calpine pipeline as follows:\nThe pipeline at issue is a single purpose oil line approximately 1,800 feet in length, which\nsupplies Calpine's Tank 36 located at the Fore River Station. Fore River Station is a\n730MW gas-fired generation plant operated by CFREC on land bordering the tidal Fore\nRiver on the western border of Weymouth, Massachusetts. Tank 36 and the CFREC Pipe\nsupport dual fuel operation at Fore River Station. Dual Fuel operation is infrequent.\nImmediately across the Fore River Station is an oil terminal (\"Sprague Terminal\")\noperated by Sprague Resources LP (\"Sprague\"). The Sprague Terminal is on the eastern\nedge of Quincy, Massachusetts, also bordering Fore River. The CFREC Pipe begins at a\nflange located on the Sprague Terminal site in Quincy, enters a bedrock tunnel (owned by\nCFREC) under the Fore River land, remerges on the Weymouth side, and then proceeds\nacross CFREC property to Tank 36, where the CFREC Pipe terminates. At no point does\nthe CFREC Pipe interconnect with any other pipelines. It is owned and controlled by\nCFREC from the flange in the Sprague terminal to consumption at Calpine's Tank 36.\nAlso, in a February 14, 2017, email, you provided PHMSA with drawings of the pipeline and the\nfollowing additional information:\nCFREC staff was able to provide 18 drawings by pdf ... with the oil line highlighted in\nyellow . . . You can see the oil line beginning in the Sprague terminal, entering the\nQuincy headhouse, going under the Fore River (in a 6-foot underground tunnel owned by\nCalpine, which we call the \"BECO Tunnel\"), exiting the BECO Tunnel via the\nWeymouth headhouse, and then crossing under the state highway to \"L.C. Lot C\" (the\nsite of the Fore River Station), headed towards the day tank.\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\nYou ask whether this single-purpose intrastate pipeline would be regulated by the Federal\npipeline safety regulations since the pipeline is not \"in or affecting interstate or foreign\ncommerce\" within the scope of Part 195.\nPursuant to its authority under the Pipeline Safety Act, 49 U.S.C. chapter 601, PHMSA\nestablishes safety standards in Part 195 for pipeline facilities and the transportation of hazardous\nliquids or carbon dioxide associated with those facilities in or affecting interstate or foreign\ncommerce. The Pipeline Safety Act, and thereby the regulations in Part 195, extend to pipeline\nfacilities, whether intrastate or interstate. See, e.g., Five Flags Pipe Line Co. v. U.S. Dep't of\nTransp., No. CIV. A. 89-0119 JGP, 1992 WL 78773 (D.D.C. Apr. 1, 1992). The oil pipeline at\nissue is an intrastate pipeline in or affecting interstate or foreign commerce within the scope of\nthe Pipeline Safety Act and Part 195. The oil pipeline transports the commodity from the\nSprague oil terminal, under the Fore River through an underground tunnel, and crosses under the\nstate highway to the day tank.\nAlthough intrastate pipeline facilities may not be regulated by PHMSA in a state that submits an\nannual certification to regulate those facilities, Massachusetts does not regulate or enforce safety\nstandards and practices for intrastate hazardous liquid pipeline facilities. Accordingly, PHMSA\nenforces the Federal hazardous liquid pipeline safety regulations for intrastate pipelines in\nMassachusetts, including the pipeline at issue here.\nFurthermore, the oil pipeline is subject to the Clean Water Act as amended by the Oil Pollution\nAct of 1990 (33 U.S.C. § 1321) and an oil spill response plan is required to be submitted to\nPHMSA. An operator of a pipeline for which a response plan is required may not handle, store\nor transport oil in that pipeline unless the operator has submitted a response plan meeting the\nrequirements of 49 CFR Part 194.\nlfwe can be of further assistance, please contact Tewabe Asebe at 202-366-5523.\nSincerely,\nA. ale\nDirector, Office of Standards\nand Rulemaking\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\nFEB 062017\nPIERCE ATWOOD\nRICHARD S. NOVAK\n100 Summer Street\n22 Floor\nBoston, MA 02110\nP 617.488.8108\nF 617.824.2020\nrnovak@pierceatwood.com\npierceatwood .com\nAdmitted in: MA\nJanuary 31, 2017\nOffice of Pipeline Safety (PHP-30), PHMSA\nU.S. Department of Transportation\n1200 New Jersey Avenue SE\nWashington DC 20590-0001\nRE: Calpine Fore River Energy Center LLC (\"CFREC\")- PHMSA inquiry re: back\nup fuel oil line\nDear Sir or Madam:\nI am writing on behalf of CFREC (\"Calpine\") to obtain a written regulatory interpretation\npursuant to 49 C.F.R. §190.11 regarding potential U.S. Department of Transportation's\n(\"USDOT\") 49 CFR §195.1 jurisdiction over a purely intrastate hazardous liquid pipeline.\nWe understand that, pursuant to 49 C.F.R. §195.1(a), USDOT's Pipeline and Hazardous\nMaterials Safety Administration (\"PHMSA\") regulations \"cover\" the transportation of\nhazardous liquids in or affecting interstate or foreign commerce.\nThe pipeline at issue (\"CFREC Pipe\") is a single purpose oil line approximately 1,800 feet in\nlength, which supplies Calpine's Tank 36 located at the Fore River Station. Fore River\nStation is a 730MW gas-fired generation plant operated by CFREC on land bordering the\ntidal Fore River on the western border of Weymouth, Massachusetts. Tank 36 and the\nCFREC Pipe support dual fuel operation at Fore River Station. Dual Fuel operation is\ninfrequent.\nImmediately across the Fore River from Fore River Station is an oil terminal (\"Sprague\nTerminal\") operated by Sprague Resources LP (\"Sprague\"). The Sprague Terminal is on the\neastern edge of Quincy, Massachusetts, also bordering Fore River. The CFREC Pipe begins\nat a flange located on the Sprague Terminal site in Quincy, enters a bedrock tunnel (owned\nby CFREC) under the Fore River land, remerges on the Weymouth side, and then proceeds\nacross CFREC property to Tank 36, where the CFREC Pipe terminates. At no point does the\nCFREC Pipe interconnect with any other pipelines. It is owned and controlled by CFREC\nfrom the flange in the Sprague terminal to consumption at Calpine's Tank 36.\nBased on the foregoing facts, we believe that this single-purpose intrastate pipeline is not\n\"in or affecting interstate or foreign commerce\" such that it would be \"covered\" by PHMSA\nregulations.\nPORTLAND, ME BOSTON, MA PORTSMOUTH, NH PROVIDENCE, RI AUGUSTA, ME STOCKHOLM, SE WASHINGTON, DC\n\n<<<PAGE 4>>>\n\nPage 2\nJanuary 31, 2017\nWe appreciate your regulatory interpretation on the matter, and would be glad to provide\nfurther detail if you have questions.\nYour attention to this matter is very much appreciated.\nSincerely,\nRichard S. Novak\ncc: Lisa A. Gilbreath\n{W5983918.2}","truncated":false,"body_characters":8120}