{"operation":"document","citation":"PI-19-0004","title":"Michigan Public Service Commission — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2020-09-21","effective_on":null,"summary":"PI-19-0004 response to Michigan Public Service Commission concerning 192.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0004","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/74426/michigan-psc-pi-19-0004-09-15-2020-part192-1.pdf","body":"<<<PAGE 1>>>\n\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration September 21, 2020\nMr. David J. Chislea\nManager of Gas Operations\nMichigan Public Service Commission\n7109 W. Saginaw Highway\nLansing, MI 48917\nDear Mr. Chislea:\nIn a May 1, 2019, letter to the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), you requested an interpretation of 49 Code of Federal Regulations (CFR) § 192.1.\nSpecifically, you requested an interpretation for the applicability of 49 CFR Part 192 in regards\nto pipelines located within buildings.\nYou mentioned several PHMSA interpretations on master meter systems which, after a phone\ncall with myself, we summarized into the following question:\nQuestion: Interpretation PI-16-0012 states,\n“The definition for a master meter system does not\nprohibit regulation for non-buried gas pipelines. PHMSA does not regulate gas piping inside a\nbuilding unless the interior piping is used by the gas pipeline operator to distribute gas.”\nHowever, interpretations PI-73-0112, PI-76-0114, and PI-01-0113 seem to contradict PI-16-\n0012. What is the reasoning why PI-16-0012 interprets the Mall of America’s inside gas\npipeline as regulated while the other three interpret inside gas pipelines as not being regulated by\nPart 192?\nAnswer: PHMSA’s interpretations respond to a unique set of facts presented by the requestor.\nShould any of the facts change, PHMSA’s response would be subject to change. In addition,\nPHMSA’s interpretations reflect the agency's application of the regulations to the specific facts\npresented by the person requesting the clarification. Prior interpretations given for a different set\nof facts are not generally applicable. They are provided to help the specific requestor understand\nhow to comply with the regulations. Regarding the interpretations raised by your question,\nPHMSA does not see a contradiction between these interpretations. The location of gas\npipelines is only one of many factors that determine whether a gas pipeline system is a master\nmeter system or not.\nInterpretation PI-73-0112 analyzes three master meter scenarios. It provides two characteristics\nthat are common to several master meter systems. First, the “existence of underground or\nexterior piping serving multiple buildings” and second, “the transfer (sale) of gas (metered or\nunmetered) from the master meter system operator to the ultimate gas consumers (tenants) for\nuse in the consumers’ appliances.”\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 2>>>\n\n2\nIn the first scenario discussed by PI-73-0112, a gas line enters a residence unit, proceeds through\nthe unit to serve various appliances, then leaves the unit and services other residence units in a\nlike manner. The interpretation explained that “normally, interior piping is not considered\nsubject to the regulations, [but] in this case where it is one continuous distribution line without\nseparate risers or services for individual units and is under the sole control of the operator,” the\ninterior segments are subject to the regulations to the same extent as the exterior and\nunderground portions.\nIn scenario 2, PHMSA discusses a residential master meter system in which a gas line enters a\nmultiple residence unit and travels throughout the residence unit tapping off services to the\nvarious residence units within the same building. PHMSA concluded the piping inside the wall\nis not subject to federal regulations because it is considered “customer piping.” PHMSA stated,\n“[b]ecause it is impractical in many situations to determine who owns the piping in a building,\nall the gas lines within a single building downstream of the \"master\" meter are considered by the\nOPS to be customer's piping.” The example PHMSA provided was a condominium, in which all\nthe unit owners may own the piping jointly and it is difficult to separate customer piping from a\ndistribution line. PI-16-0012 (the Mall of America interpretation) is not analogous to a\ncondominium. It is not difficult to determine who owns the interior piping in the Mall of\nAmerica. The interior piping within the Mall of America is owned by the Mall. The customer\npiping is located within each store and is metered separately. The stores do not jointly and\ncollectively own the Mall’s piping.\nIn scenario 3 described by PI-73-0112, PHMSA discussed a facility where a gas line leaves a\nmaster meter and travels through the ground, serving a plant unit, offices and other units.\nPHMSA determined it was not a master meter system because the gas was being used by\ncompany employees for company purposes on company property. PHMSA noted that,\n“[o]ne of\nthe characteristics of a master meter system that makes it subject to the [pipeline safety]\nregulations [is] the transfer of gas from the operator (landlord) to other persons who are the\nultimate consumers of the gas.” This principle is reaffirmed in the Mall of America\ninterpretation. The ultimate consumer of gas in the Mall of America interpretation was the store\ntenants. The Mall, the landlord, distributes gas to the individual stores, who are the tenants.\nIn PI-76-0114, PHMSA added additional clarity to the classification of interior piping stating\n“interior piping is only subject to regulation when it is included in an operator's system which is\notherwise located outside.” Thus, interior piping is subject to regulation when it is part of a\n“regulated system” which would otherwise be located outside.\nIn PI-01-011, PHMSA found that a particular multi-family housing complex met the definition\nof a master meter system even if the tenants did not directly pay for utilities. The interpretation\nonly briefly mentions that the interior piping within the buildings, beyond the first penetration of\neach building wall is non-jurisdictional. Again, this interpretation discussing a particular multi-\nfamily housing complex is not analogous to Mall of America, which has many business\ncustomers with separate accounts and separate risers.\nMoreover, the Mall of America interpretation aligns with several interpretations PHMSA has\nissued concerning concessionaries on university campuses, a scenario that is analogous to the\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\nMall of America’s system unlike a multi-family housing complex. As noted in interpretations\nPI-73-030, PI-03-0101, and PI-17-0012, when a university sells gas to businesses, the university\nis distributing the gas, and the businesses are the ultimate consumer who either purchase the gas\ndirectly through a meter or by other means, such as by rents. These interpretations establish a\nkey consideration when seeking to determine whether a system is a master meter: where does\ntransportation end and consumption by the end user start?\nAs the Mall of America interpretation stated, gas pipelines inside buildings may be regulated\nwhere the gas piping is being used by the gas pipeline operator to transport gas to several\nbusinesses who are the ultimate consumers of the gas. If there is transportation of gas inside of a\nbuilding, above ground or underground, Part 192 applies up to the custody transfer point between\nthe gas distributer (LDC or master meter system operator) and the consumer.\nIf we can be of further assistance, please contact Tewabe Asebe at 202-366-5523.\nSincerely,\nJohn A. Gale\nDirector, Office of Standards\nand Rulemaking\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 4>>>\n\nFrom: Miller, Nathan (LARA) [mailto:MillerN13@michigan.gov]\nSent: Tuesday, June 30, 2020 9:39 AM\nTo: Gale, John (PHMSA) <john.gale@dot.gov>\nSubject: RE: MI Interp request on Master Meters\nJohn, that question looks good to me. Thank you for working with us on this!\nNathan J. Miller, P.E.\nGas Safety Supervisor\nFrom: Gale, John (PHMSA) <john.gale@dot.gov>\nSent: Thursday, June 25, 2020 9:29 AM\nTo: Miller, Nathan (LARA) <MillerN13@michigan.gov>\nSubject: RE: MI Interp request on Master Meters\nNathan:\nPer our discussion this am, here is my recommendation for re-couching your master meter\nquestion. Please let me know if that works or if you want any changes to it,\nJohn\n__________________________\nMr. David J. Chislea\nManager of Gas Operations\nMichigan Public Service Commission\n7109 W. Saginaw Highway\nLansing, MI 48917\nDear Mr. Chislea:\nIn a May 1, 2019, letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), you\nrequested an interpretation of 49 Code of Federal Regulations (CFR) Part 192.1. Specifically, you\nrequested an interpretation for the applicability of 49 CFR Part 192 in regard to pipelines located within\nbuildings.\nYou mentioned several PHMSA interpretations on master meter systems which, after a phone call with\nmyself, we summarized into the following question:\nQuestion. Interpretation PI-16-0012 states, “… The definition for a master meter system does not\nprohibit regulation for non-buried gas pipelines. PHMSA does not regulate gas piping inside a building\nunless the interior piping is used by the gas pipeline operator to distribute gas.” However,\ninterpretations PI-73-0112, PI-76-0114, and PI-01-0113 seem to contradict PI-16-0012. What is the\nreasoning why PI-16-0012 interprets the Mall of America’s inside gas pipeline as regulated while the\nother three interpret inside gas pipelines not regulated by Part 192.","truncated":false,"body_characters":10875}