{"operation":"document","citation":"PI-19-0012","title":"Maverick — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2019-10-17","effective_on":null,"summary":"PI-19-0012 response to Maverick concerning 195.0.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0012","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/72681/maverick-pi-19-0012-10-17-2019-part-1950.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nofTransportation\nPipeline and Hazardous Materials\nSafety Administration\n1200 New Jersey Avenue SE\nWashington DC 20590\nOCT Tf 2019\nMr. Don Barkley\nHSE Advisor III\nMaverick\n10350 Heritage Park Drive\nSuite 201\nSanta Fe Springs, CA 90670\nDear Mr. Barkley:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated June\n21, 2019, you requested an interpretation of 49 Code of Federal Regulations (CFR) Part 195.\nYou specifically requested an interpretation regarding the applicability of§ 195.0 to a Santa Fe\nSprings crude oil shipping pipeline (Santa Fe Springs pipeline).\nYou described the Santa Fe Springs pipeline as an underground and aboveground intrastate\npipeline which was installed in 2014. You stated that the pipeline transports crude oil from the\nSanta Fe Springs tank farm and connects to the Crimson pipeline (0.44 miles) away. You stated\nthe Crimson pipeline then transports the crude oil to a refinery within the state of California. In\naddition, the Santa Fe Springs pipeline has a specified minimum yield strength (SMYS) of\n30,000 pounds per square inch (psi), and a maximum operating pressure of 375 psi.\nYou stated that you requested the California Office of the State Fire Marshal (OSFM) to\ndetermine whether the Santa Fe Springs pipeline is a low-stress, intrastate pipeline and whether it\nis regulated under 49 CFR Part 195. You stated that OSFM determined the pipeline is a low\nstress intrastate pipeline and regulated under Part 195.\nYou asked for PHMSA's interpretation of whether this intrastate pipeline is regulated by the\nFederal pipeline safety regulations since the pipeline is not \"in or affecting interstate or foreign\ncommerce\" within the scope of Part 195.\nPHMSA agrees with the OSFM interpretation that the Santa Fe Springs pipeline is regulated\nunder § 195.1 (a)(3) as any pipeline located in a rural or non-rural area of any diameter regardless\nof operating pressure. Pursuant to its authority under the Pipeline Safety Act, 49 U.S.C. chapter\n601, PHMSA establishes safety standards in 49 CFR Part 195 for pipeline facilities and the\ntransportation of hazardous liquids or carbon dioxide associated with those facilities in or\naffecting interstate or foreign commerce. The Pipeline Safety Act, and thereby the regulations in\n49 CFR Part 195, extend to pipeline facilities, whether intrastate or interstate. See, e.g., Five\nFlags Pipe Line Co. v. U.S. Dep't ofTransp., No. CIV. A. 89-0119 JGP, 1992 WL 78773\nThe Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations (49 CPR\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(D.D.C. Apr. 1, 1992). The Santa Fe Springs pipeline is an intrastate pipeline in or affecting\ninterstate or foreign commerce within the scope of the Pipeline Safety Act and 49 CFR Part 195.\nThe Santa Fe Springs pipeline transports the crude oil from the Santa Fe Springs tank farm and\nconnects to the Crimson pipeline (0.44 miles) away. The Crimson Pipeline in turn transports the\ncrude oil to a refinery.\nIntrastate pipeline facilities are regulated by states that submit annual certification to regulate\nthose facilities; California is one of those states. Accordingly, at a minimum, OSFM enforces\nthe Federal hazardous liquid pipeline safety regulations for intrastate pipelines in the state of\nCalifornia, including the Santa Fe Springs pipeline.\nFurthermore, the Santa Fe Springs pipeline, which transports crude oil, may be subject to the\nClean Water Act as amended by the Oil Pollution Act of 1990 (33 U.S.C. § 1321) and an oil spill\nresponse plan may be required to be submitted to PHMSA if Maverick determines that it is likely\nthat the worst case discharge from any point on the line section would adversely affect, within 4\nhours after the initiation of the discharge, any navigable waters, public drinking water intake, or\nenvironmentally sensitive areas (§ 194.101 (b )(2)(ii)). An operator of a pipeline for which a\nresponse plan is required may not handle, store or transport crude oil in that pipeline unless the\noperator has submitted a response plan meeting the requirements of 49 CPR Part 194.\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 fonn 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\nJUL & 1 2 0 19\nBreitburn Operating LP\n(a wholly owned subsidiary of\nMaverick Natural Resources, LLC)\n1111 Bagby Street • Suite 1600\nHouston • Texas • 77002\n713-437-8000\nJune 21, 2019\nAlan K. Mayberry, Associate Administrator PHP-lPipeline and Hazardous\nMaterials Safety Administration\n1200 New Jersey Avenue SE\nWashington, DC 20590\nRE: Determination of Jurisdictional Status of Santa Fe Springs Crude Oil Shipping Pipeline (SFS2014)\nDear Mr. Mayberry,\nIn 2018, we sent the Office of the State Fire Marshal (OSFM) a letter requesting their concurrence that\nthe SFS 2014 Pipeline is a low-stress, intrastate pipeline under applicable state and federal regulations\nand therefore not jurisdictional to the OSFM Pipeline Safety Division under the statutes and regulations\ngoverning that agency nor under the Department of Transportation/Pipeline and Hazardous Materials\nSafety Administration (DOT/PHMSA). OSFM responded to our letter this week indicating that they\nconcur with our determination that this pipeline meets the low stress exception identified in California\nGovernment Code (GC), Chapter 5.5, Section 5101 0.5 (a)(3). However, they did not agree with our\ndetermination that this line is not subject 49CFR195. We have attached OSFM correspondence to this\nletter for your reference. Since we still believe that 49CFR195 requirements are not applicable to our\npipeline because our pipeline is an intrastate pipeline and is not in nor does it affect foreign or interstate\ncommerce, we are requesting a written opinion as to whether PHMSA is in agreement with our\ndetermination.\nBackground\nBOLP has a short length of both underground and aboveground pipeline (0.44 mi) in Santa Fe Springs,\nCA which connects our main Tank Farm to Crimson's commercial pipeline on Bloomfield Avenue for the\npurpose of transporting crude oil to local refineries. BOLP' s pipeline was installed in early 2014\n(SFS2014 Pipeline).\nAnalysis\n1. The SFS 2014 Pipeline is an intrastate pipeline and is not in nor does it affect foreign or interstate\ncommerce and is therefore not subject to the PHMSA regulations. While the CSFM is authorized\nto enforce DOT /PHMSA regulations. the DOT /PHMSA regulations do not apply to the SFS\n2014 Pipeline because it is strictly an intrastate line under 49 CFR § 195.1.\nWe understand that under the Elder California Pipeline Safety Act, CSFM is a certified agent for\nthe DOT /PHMSA for enforcement of the DOT/PHMSA regulations of interstate hazardous liquid\npipelines located within the state (49 CFR Parts 190-199. Part 195 covers crude oil lines).\nHowever, the SFS 2014 Pipeline is an intrastate pipeline that connects to the Crimson Pipeline -\nanother intrastate pipeline - that terminates at a refinery located in Southern California. Therefore,\nit is our assessment that the SFS 2014 Pipeline is not an interstate pipeline subject to 49 CFR Parts\n190-199.\nMaverick Natural Resources, LLC\n\n<<<PAGE 4>>>\n\nBreitburn Operating LP\n(a who lly owr w d su b sidiary of\nMaver 1 ck Na tu1 al l~eso u1 ces, L LC)\n1111 Bagby Street • Suite 1600\nHouston • Texas • 77002\n713-437-8000\nBy way of reference, 49 CFR § 195 .2 defines interstate pipelines as \"a pipeline or that part of a\npipeline that is used in the transportation of hazardous liquids or carbon dioxide in interstate or\nforeign commerce.\"\n49 U.S.Code §60101(a)(8) of the Pipeline Safety Laws defines interstate or foreign commerce as:\n\"(B) related to hazardous liquid, means commerce between (i) a place in a State and a\nplace outside that State; or (ii) places in the same State through a place outside the State.\"\nAnd finally, 49 U.S.Code §6010l(a)(10) of the Pipeline Safety Laws defines \"intrastate\nhazardous liquid pipeline facility\" as \"a hazardous liquid pipeline facility that is not an interstate\nhazardous liquid pipeline facility.\"\nThe SFS 2014 Pipeline starts at the Santa Fe Springs tank farm (in California) and connects to the\nCrimson Pipeline (0.44 miles away, in California) which then transfers the crude to a refinery\nlocated in California. Under our review of the applicable regulations, it is our assessment that\nthat the SFS 2014 Pipeline is an intrastate pipeline and is not an interstate pipeline subject to 49\nCFR Parts 190-199.\nIn light of the foregoing, we respectfully request requests an interpretive letter confirming our belief that\nour 2014 SFS crude shipping line is not subject requirements of Part 195.\nShould more information or additional discussion be needed, please contact me ( contact information\nattached below).\nDon Barkley\nHSE Advisor Ill\noffice: 562.968.2524\nmobile: 213.905.2168\ndonald.barkley@mavresources.com\nMAVERICK NATURAL RESOURCES, LLC\n(Parent of Breitburn Operating LP)\n10350 Heritage Park Drive, Suite 201\nSanta Fe Springs CA 90670\nMaverick Natural Resources, LLC 2\n\n<<<PAGE 5>>>\n\nSTATE OF CALIFORNIA- NATURAL RESOURCES AGENCY\nGavin Newsom, Governor\nDEPARTMENT OF FORESTRY AND FIRE PROTECTION\nOffice of the State Fire Marshal\nPipeline Safety Division\n3780 Kilroy Airport Way, Suite 500\n• Long Beach, CA 90806\n(562) 497-0366\nWebsite; www,fire.ca.gov\nJune 18, 2019\nTina Darjazanie\nRegional EHS Manager\nBreitburn Operating LP\n10350 Heritage Park, Suite 201\nSanta Fe Springs, California 90670\nSUBJECT: DETERMINATION OF JURISDICTIONAL STATUS OF SANTA FE\nSHIPPING (SFS2014) PIPELINE (OSFM LINE ID #1357)\nDear Ms. Darjazanie;\nCAL FIRE - Office of the State Fire Marshal (OSFM) received the Breitburn Operating LP\n(Breitburn) letter dated July 11, 2018 (Revised August 15, 2018) regarding the\njurisdictional status of the Santa Fe Shipping Pipeline (SFS2014) (OSFM Line 10#1357).\nThis line has a total length of 0.44 mile and trs;1nsports crude oil from the Breitburn Lease\nto the Crimson Pipeline Butler Road Line 756 (OSFM Line ID #0852) in the city of Santa\nFe Springs, California. According to Breitburn, the pipeline has a diameter of 4 inches, a\nSpecified Minimum Yield Strength (SMYS) of 30,000 psi., and a Maximum Operating\nPressure of 375 psi.\nThe OSFM has reviewed the information you provided regarding the SFS2014 Crude Oil\npipeline and determined that this pipeline meets the low stress exception identified in\nCalifornia Government Code (GC), Chapter 5.5, Section 51010.5 (a)(3). Low stress\npipelines operate at a stress level of 20 percent or less of the SMYS of the line pipe.\nTherefore, Breitburn will not be required to meet the requirements of the GC, Chapter 5.5.\nThis determination could change in the future should operating conditions change in this\npipeline or changes in applicable law occur.\nThe OSFM also concluded, that this line does not meet any exceptions identified in Title\n49, Code of Federal Regulations (49 CFR), Part 195.1(b). This pipeline is classified as an\nurban gathering crude oil pipeline under 49 CFR, Part 195(a)(4)(i). Therefore, this pipeline\n\"The Depart111e11t of ForesflJ1 and Fire l'roteclion serves and safeguards the people and protects the property and resources of California.\"\n\n<<<PAGE 6>>>\n\nTina Darjazanie\nJune 18, 2019\nPage2\nwill continue to be subject to 49 CFR, Part 195 regulations and will remain jurisdictional to\nthe OSFM. Breitburn will also need to continue to submit the OSFM Annual Pipeline\nOperator questionnaire and pay the pipeline operator and mileage fees for this pipeline.\nSincerely, ,~\nCIAMES HOSLER\nAssistant Deputy Director\nChief of Pipeline Safety and CUPA Programs\ncc: Hossain Monfared, OSFM, Supervising Pipeline Safety Engineer","truncated":false,"body_characters":12616}