{"operation":"document","citation":"PI-17-0015","title":"SI Group — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2018-03-12","effective_on":null,"summary":"PI-17-0015 response to SI Group concerning 195.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-17-0015.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-17-0015.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-17-0015","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/57446/si-group-pi-17-0015-03-12-2018-part-195-1.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nofTransportation\nPipeline and Hazardous Materials\nSafety Administration\n1200 New Jersey Avenue SE\nWashington DC 20590\nM AR 1 2 2018\nMs. Paulina Williams\nBaker Botts LLP\n98 San Jacinto Blvd.\nSuite 1500\nAustin, Texas 78701-4078\nDear Ms. Williams:\nIn an August 29, 2017, letter to the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), you requested an interpretation of 49 CFR Part 195. Specifically, you requested for\ninterpretation regarding the exemption in§ 195.l(b)(3)(ii).\nYou provided the following information.\nWe are writing on behalf of our client, SI Group-Baytown (\"SI Group\"), to request a\nwritten regulatory interpretation regarding application of an exception from Part 195\napplicability. Specifically, SI Group seeks an interpretation from Pipeline and Hazardous\nMaterials Safety Administration (\"PHMSA\") of the PHMSA pipeline safety regulation at\n49 CFR 195.l(b)(3)(ii) as it applies to a 4-inch liquid propane pipeline SI Group now\noperates at a chemical manufacturing plant SI Group recently acquired in Baytown,\nTexas. This pipeline is less than one-mile long, does not cross any waterways, and it will\nbe operated as a low stress pipeline. The pipeline transports propane from the plant a\ndistance of approximately 1800 feet outside the plant boundary to a customer operated\nlong-distance transportation line ...\nSI Group is requesting PHMSA guidance on whether the pipeline in question \"serves\" a\nmanufacturing facility within the meaning of the[§ 195.l(b)(3)(ii)]. SI Group has\nreviewed the rule language and relevant guidance and believes that the outbound propane\npipeline \"serves\" SI Group's manufacturing plant and, therefore, provided the other\nconditions of 49 CFR § 195.l(b)(3)(ii) are properly satisfied, the propane pipeline would\nnot be subject to Part 195. Because the regulation does not contain a definition of what\nconstitutes \"serving\" a manufacturing facility, however, SI Group is requesting\nconfirmation from PHMSA of the appropriate interpretation in this fact situation.\nYou also attached PHMSA rulemaking history and a February 1, 2001, interpretation on this\nexemption.\nThe section 195.l(b)(3)(ii) exemption reads as follows:\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\n§ 195 .1 Which pipelines are covered by this Part?\n(a) ...\n(b) Excepted This Part does not apply to any of the following:\n(3) Transportation of a hazardous liquid through any of the following low-stress\npipelines:\n(ii) A pipeline that serves refining, manufacturing, or truck, rail, or vessel terminal\nfacilities, if the pipeline is less than one mile long (measured outside facility grounds)\nanll does not cross- an offshore area or a waterway currently used fo1comrrr erctal\nnavigation ...\nOn September 2, 1998, PHMSA issued a final rule, \"Low-Stress Hazardous Liquid Pipelines\nServing Plants and Terminals,\" 63 FR 46692, whose purpose was to \"exclude from [PHMSA's]\nsafety standards for hazardous liquid ... low-stress pipelines less than 1 mile long that serve\ncertain plants and transportation terminals without crossing an offshore area or a waterway\ncurrently used for commercial navigation.\" The rule stated that this definition included\n\"interfacility transfer lines\" that \"move hazardous liquids for short distances between truck, rail,\nand vessel transportation terminals, manufacturing plants (including petrochemical plants), and\noil refineries, or between these facilities and associated storage or long distance pipeline\ntransportation.\" 63 FR 46692. The rule included the current regulatory language excluding a\nlow-stress pipeline that \"serves refining, manufacturing, or truck, rail, or vessel terminal\nfacilities, ifthe pipeline is less than 1 mile long (measured outside facility grounds) and does not\ncross an offshore area or a waterway currently used for commercial navigation.\" Therefore, the\nword \"serve\" includes both receiving and delivering regulated products through pipeline\ntransportation.\nIn this case, the pipeline is 1800 feet (0.34 miles) long, does not cross any waterways, and it will\nbe operated as a low stress pipeline. The pipeline transports propane a short distance between\nthe plant and a customer operated long-distance transportation line. It therefore \"serves\"\nmanufacturing facility within the meaning of the§ 195.l(b)(3)(ii)]. Under§ 195.l(b)(3)(ii), the\nline is therefore excluded from PHMSA's regulations.\nlfwe can be of further assistance, please contact Tewabe Asebe at 202-366-5523.\nSincerely,\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\n98 SAN JACINTO BLVD.\nSUITE 1500\nAUSTIN, TEXAS\n78701-4078\nTEL +1 512.322.2500\nFAX +1 512.322.2501\nBakerBotts.com\nAUSTIN\nBEIJING\nBRUSSELS\nDALLAS\nDUBAI\nHONG KONG\nHOUSTON\nLONDON\nMOSCOW\nNEW YORK\nPALO ALTO\nRIYADH\nSAN FRANCISCO\nWASHINGTON\nAugust 29, 2017\nPaulina Williams\nTEL: 5123222543\nFAX: 5123223643\npaulina.williams@bakerbotts.com\nDOT/PHMSA/OPS\nAttn: Information Resource Manager\ninformationresourcesmanager@dot.gov\nEast Building, 2nd Floor\nPHP-20, E22-321\n1200 New Jersey Avenue, SE\nWashington, DC 20590-0001\nRe: SI Group—Baytown Part 195 Interpretation Request\nDear Sir/Madam:\nWe are writing on behalf of our client, SI Group–Baytown (“SI Group”), to request a written\nregulatory interpretation regarding application of an exception from Part 195 applicability.\nSpecifically, SI Group seeks an interpretation from Pipeline and Hazardous Materials Safety\nAdministration (“PHMSA”) of the PHMSA pipeline safety regulation at 49 C.F.R.\n§ 195.1(b)(3)(ii) as it applies to a 4-inch liquid propane pipeline SI Group now operates at a\nchemical manufacturing plant SI Group recently acquired in Baytown, Texas. This pipeline is\nless than one-mile long, does not cross any waterways, and it will be operated as a low stress\npipeline. The pipeline transports propane from the plant a distance of approximately 1800 feet\noutside the plant boundary to a customer operated long-distance transportation line.\nThe relevant exception to Part 195 applicability set forth in 49 C.F.R. § 195.1(b) states:\nThis Part does not apply to any of the following: …\n(3) Transportation of a hazardous liquid through any of the following low-stress\npipelines:…\n(ii) A pipeline that serves refining, manufacturing, or truck, rail, or vessel terminal\nfacilities, if the pipeline is less than one mile long (measured outside facility\ngrounds) and does not cross an offshore area or a waterway currently used for\ncommercial navigation\nSI Group is requesting PHMSA guidance on whether the pipeline in question “serves” a\nmanufacturing facility within the meaning of the above provision. SI Group has reviewed the\nrule language and relevant guidance and believes that the outbound propane pipeline “serves” SI\nGroup’s manufacturing plant and, therefore, provided the other conditions of 49 C.F.R.\n§ 195.1(b)(3)(ii) are properly satisfied, the propane pipeline would not be subject to Part 195.\nActive 36110637.1\n\n<<<PAGE 4>>>\n\nDOT/PHMSA/OPS - 2 - August 29, 2017\nBecause the regulation does not contain a definition of what constitutes “serving” a\nmanufacturing facility, however, SI Group is requesting confirmation from PHMSA of the\nappropriate interpretation in this fact situation.\nWe have attached additional details and explanation in support of this request and relevant\npreambles and guidance for ease of reference.\nPlease contact me at 512.322.2543 or paulina.williams@bakerbotts.com with any questions\nregarding this request for written interpretation. We appreciate your time and consideration.\nVery truly yours,\nPaulina Williams\ncc: Charles Gardner, SI Group\nGary Crabtree, SI Group\nActive 36110637.1\n\n<<<PAGE 5>>>\n\nSI Group -\nBaytown\nW. Baker Rd.\n4” Propane\nPipeline\nActive 34784590.1\nConnection to\nEnergy Transfers’\nPipeline\n\n<<<PAGE 6>>>\n\nHazel St\nLcy Elastomers Lp O\nWade Ri\n* Lillian St\nLorraine Dre\nDecker Dr.\nLouise St\nVae Da\nSunshine A\nDecker Dr\nDecker Dra\nPonderosa Dr\nBaytown Self Storage\nCraigmont Bird\nMcElroy Park\nJames House\n~ Baker Ro\nW Baker Rd\nDairy Queen Store\nFluor Craft Employment\nW Baker Rd\nW Baker Rd\nW Baker Rd\nBaker Rd\nW Baker Rd\nW Baker Rd\nShopping Center\nDecy West Town C\nExxonMobil\nDecker Dr\nID Badge Gate\nEnterprise Products","truncated":false,"body_characters":9173}