{"operation":"document","citation":"PI-19-0002","title":"Cal Farley's Boys Ranch — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2020-02-06","effective_on":null,"summary":"PI-19-0002 response to Cal Farley's Boys Ranch concerning 191.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0002","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/73476/cal-farley-pi-19-0002-02-06-2020-part-1913.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nofTransportation\nPipeline and Hazardous Materials\nSafety Administration\n1200 New Jersey Avenue SE\nWashington DC 20590\nFEBO 6 2020\nMr. Mark Al Strother\nExecutive Vice President and\nChief Operating Officer\nCal Farley's Boys Ranch\n600 SW 11th Avenue\nAmarillo, TX 79101\nDear Mr. Strother:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), you\nrequested an interpretation of 49 Code of Federal Regulations (CFR) Part 191. Specifically, you\nrequested an interpretation of§ 191.3 as it relates to a master meter system.\nYou described the Cal Farley's Boys Ranch (Ranch) as an-unincorporated community in\nnortheastern Oldham County, Texas. You stated that as a non-profit organization, the purpose of\nthe ranch is to provide a stable living and learning environment to nurture children who have\nexperienced qualifying challenges that would stifle their potential. The citizen-residents of the\nRanch fall into two categories, employees of the Ranch and opportunity-challenged youth. All\npersonnel that reside on the Ranch are paid employees living in provided homes. The Ranch\ndoes not rent living space to any individual or family.\nYou described the Ranch's gas system as an odorized natural gas pipeline purchased through a\nmaster meter that enters a network of mains and services to serve gas deliveries to the campus's\nfacilities. All associated piping and appliances downstream of the purchase meter is owned,\noperated, and maintained by Cal Farley's Boys Ranch. Gas is delivered through the mains and\nservices to provide energy for central air conditioning, central heating, water heating, and\ncooking appliances for the school education and administrative buildings, gymnasiums,\ncafeterias, living quarters, and out-buildings, as applicable.\nYou asked PHMSA to provide insight on the regulatory status of the Ranch and you have\nprovided arguments that suggest you believe the Ranch is unique and distinct from a master\nmeter system. Based on the limited information provided in your request, PHMSA asked follow-\nup questions and you provided the responses on June 7, 2019.1\nPHMSA question - Is the Cal Farley's Boys Ranch gas pipeline system operated and\nmaintained by a third party?\n1 The questions and responses have been modified for clarity.\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations (49 CFR\nParts 190-199) in the fonn 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 are not generally applicable, do not create legally-enforceable rights or\nobligations, and are provided to help the specific requestor understand how to comply with the regulations.\n\n<<<PAGE 2>>>\n\n2\nYour response - No.\nPHMSA question - Does the Ranch sell gas to a tenant (coffee shop, restaurant, etc.)?\nYour response -No.\nPHMSA question - Are the employee tenants of the Ranch paying for the gas directly or\nindirectly? That is, does the Ranch pay the employee-tenants less than what it should pay\nthan if the employees where to live outside of the Ranch?\nYour response-No, employee-tenants of the Ranch do not pay for gas directly or\nindirectly. Cal Farley would only reduce an employee-tenant's pay for living on the\nRanch when their position is not absolutely required to live on the Ranch. We do not\nmeter for utilities, so whether a house is occupied or not, the utility usage would be about\nthe same.\nPHMSA question - Do all employees live on the Ranch? If not, is there a pay difference\nbetween employees living on the Ranch and employees living off the Ranch?\nYour response - No, all employees do not live on the Ranch. Employees living off the\nRanch do not have the option to live on the Ranch.\nSection 191.3 defiries a master meter system as a pipeline system for distributing gas within, but\nnot limited to, a definable area, such as a mobile home park, housing project, or apartment\ncomplex, where the operator purchases metered gas from an outside source for resale through a\ngas distribution 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 as by\nrents.\nTo determine whether Cal ·Farley's Boys Ranch meets the definition of a master meter system\nunder 49 CFR § 191.3 and, therefore, is subject to the requirements of 49 CFR Parts 191 and\n192, we must determine if the pipeline facilities are delivering gas to the ultimate consumer who\npays for the gas directly, via a bill, or pays for the gas indirectly through other means, such as\nrents.\nIn previous interpretations, PHMSA has stated that an entity would not meet the definition of a\nmaster meter system if it were only \"using the gas delivered through its pipeline to provide heat\nor hot water to its buildings.\" 2 In that instance, the entity would be the consumer of the gas.\nPHMSA went on to say that if the entity provides gas to consumers, such as concessionaires,\ntenants, or others, it is engaged in the distribution of gas, and the persons to whom it is providing\ngas would be considered customers even though they may not be individually metered.3\n2 Mr. Don A. Ledversis, Pipeline Safety Engineer, Rhode Island Division of Public Utilities & Carriers, PI-03-0101,\nFebruary 14, 2003.\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 are not generally applicable, do not create legally-enforceable rights or\nobligations, and are provided to help the specific requestor understand how to comply with the regulations.\n\n<<<PAGE 3>>>\n\n3\nBased on your responses to PHMSA' s questions, it appears the Cal Farley's Boys Ranch would\nbe the consumer of gas since it does not provide gas to concessionaries or tenants. Rather, Cal\nFarley's Boys Ranch uses the gas to provide energy to the various buildings it owns. Keep in\nmind that this response letter reflects the agency's current application of the regulations to the\nspecific facts you presented. If your response to any of the questions PHMSA posed changes,\nthen the regulatory status of the pipeline system for the Cal Farley's Boys Ranch may change.\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 writteq 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 are not generally applicable, do not create legally-enforceable rights or\nobligations, and are provided to help the specific requestor understand how to comply with the regulations.\n\n<<<PAGE 4>>>\n\nCal Farley' s\n0 \"/l's .J,n ,-·~ J'1';J lld '-\"•hi\"\nCal Farley's provides professional programs and ,ervices\nin ~ Christ-centered atmosphere w )trengtheu familie,\nand support the overall development of child1 en.\n6005W ll th Ave.Amarillo, TX79101\n800-61>7-3722 • calfarley.org\nMark A Strother\n600 SW 11th Ave\nAmarillo, TX 79101\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nTo: Pipeline and Hazardous Materials Safety Administration\nAfter researching the various interpretations regarding the definition of a regulated gas distribution\nsystem, we at Cal Farley's Boys Ranch have not been able to identify a PHMSA interpretation pertaining\nto what we believe as our unique circumstances. We are seeking clarification regarding what we believe\nare residents that do not fall within the traditional definition of a \"tenant.\"\nThe Cal Farley's Boys Ranch is an-unincorporated comr:nunity :ir ,no, rtheast, ern Oldham County, Texa\ns that\n_\nhas the appearance ano functiqns muc, h likl:! a typica_l c<;>llege campus .. ,Originally est~blish~~ t.9.s~rv~ boys\nonly, the Ranch today encompasses girls as well. As a non-profit organization, the purpose of the ranch\nis to provide 'a stab. re iivir1g'arid lear'n1ng environ merit to nurture children who have experienced qualifying\nchallenges· that woutci\"stifle thei• ir poten. tial. The· citizen-re·sidents of Boys Rafi- ch farhnto two'categories,\nempldyees of the · 1tarich 'and opportunity:challeng'ed youth. Ail petsonnel t:ha't reside ori the Boys Ranch\ncampJs are 'paid employees livihg in provided homes arid compensated tb do so'.'-lt functions as a mutual\nbenefit of their employment and serves the interest of employee and the functionality of the Ranch. The\nRanch does not rent living space to any individual or family.\nA description of the Cal Farley's Boys Ranch gas system.\nOdoriied naturar gas is µu· rchased 'through a' mast'er meter and enters a netw6rk of mains and services\nthat ·serve as' deliveries to·the carhpus facilitie· s: 'Ali associated pipe and 'apj:>'liances· downstrear'n of the\npurthase meter is owne-c:J,'. operated, 'a'nd maintained by 'cal · Farley's Boys Ra heh. Gas is delivered' though\nthe mains and services to the following 'types of buildings, none of which ar· e metered. ·\nWhere natural-gc!.s provides energy,- for Boys Ranch C>wned central_ air conditioni~g, water _, h\n_ eatirS, , and\ncpoking appliances 9perated . and . managed. by the , employed, perso,1;1r;i~I; ., School Education and\nAdministrative Buildings, Gymnasiums, Cafeterias, out-buildings .\n. '•'• , . . .. \\ i) t '.' . . ' . ·~·\n• ~ .•1 I : .,, Ir, ' ····;• '\n· :\n:, t . ' ,\n•. t\n. ;_ . .:., . r·,\n\n<<<PAGE 5>>>\n\nWhere natural gas provides energy for domestic use in hot water heaters and air conditioning furnaces\ninside Boys Ranch owned homes inhabited by Boys Ranch employed house-parents and their assigned\nchildren. The house-parents do not pay rent, rather are paid to live in and provide parenting to children\nin the home by the Ranch at any hour of need. As Cal Farley's Boys Ranch employees, house parents are\non duty and employed while they live inside the provided residence just as employees are on duty and\nemployed while they live at work inside other Ranch owned buildings where natural gas provides central\nheating and water heating as a service to the building.\nSimilarly, where natural gas provides energy for domestic use in hot water heaters and air conditioning\nfurnaces inside Boys Ranch provided homes, inhabited by Boys Ranch employees. Likewise, the resident\nemployees do not pay rent, rather are paid to live in and provide services to the Ranch at a moment's\nnotice. As Cal Farley's Boys Ranch employees, employees are on duty and employed while they live inside\nthe provided residence just as employees are on duty and employed while they live at work inside other\nbuildings where natural gas provides central heating and water heating as a service to the building.\nThrough previous interpretations it is understood that gas, delivered to a tenant residence through\nhouse/building piping owned by the property owner and consumed by the tenant via appliances owned\nby the property owner, is still considered to be transported gas \"in commerce.\" However, the scenarios\ndefined in previous interpretations seemed to encompass only tenants who are paying to rent the\nresidence and not tenants such as the Ranch has that are continuous employees around the clock and\nwho are paid to reside inside the Cal Farley's Boys Ranch homes.\nAny insight you may provide to the regulatory status of Cal Farley's Boys Ranch is appreciated.\nSincerely,\nMark A Strother\nExecutive VP & Chief Operating Officer\nCal Farley's Boys Ranch","truncated":false,"body_characters":12056}