{"operation":"document","citation":"PI-19-0017","title":"Flint Hills Resources — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2021-06-08","effective_on":null,"summary":"PI-19-0017 response to Flint Hills Resources concerning 195.0.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0017.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0017.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-19-0017","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/75171/flint-hills-resources-pi-19-0017-6-07-2021-part1950.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nJune 02, 2021\nMs. Kim Gerold\nManager of Pipeline Safety\nFlint Hills Resources\nP.O. Box 64596\nSaint Paul, MN 55164\nDear Ms. Gerold:\nIn a letter dated October 17, 2019, to the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Flint Hills Resources (FHR) requested an interpretation of 49 Code of\nFederal Regulations (CFR) Part 195. Specifically, FHR requested an interpretation of the\napplication of Part 195 to its pipeline that transports jet fuel from the FHR Pine Bend Refinery to\nthe Minneapolis St. Paul Airport (Airport Pipeline), in particular the points of demarcation\nbetween the regulated Airport Pipeline and the connecting in-plant and airport facilities. The\nAirport Pipeline is an intrastate pipeline subject to the regulatory authority of the Minnesota\nOffice of Pipeline Safety (MNOPS) under a § 60105 certification. You provided supplemental\nletters related to this matter on September 25, 2020.\nYou stated FHR received a PHMSA interpretation dated February 25, 2019 (Interpretation\nResponse PI-17-0011) issued to MNOPS concerning the applicability of 49 CFR Part 195 to the\nAirport Pipeline. You stated both the PHMSA interpretation and underlying MNOPS request\nwere based on inaccurate information regarding the Airport Pipeline and connecting facilities. In\nparticular, you noted that factual information was incorrect with regard to pipeline operating\npressure, pressure control and leak detection. For example, you stated the pipeline does not\noperate above 20% SMYS and there is no surge relief on the pipeline, as were stated in\nInterpretation PI-17-0011.\nIn light of your submission, PHMSA finds that it has conflicting information about the design\nand operating specifications of the Airport Pipeline that influence demarcation of the regulated\nportion. While PHMSA is not validating one statement of facts over another, PHMSA can\naffirm its longstanding interpretation of the scope of Part 195, including the end points of\nregulation when a pipeline leaves a refinery or delivers product to a materials transportation\nterminal.\nPart 195 applies to all pipeline facilities and the transportation of hazardous liquids or carbon\ndioxide associated with those facilities, with certain exceptions. Among those exceptions,\n§ 195.1(b)(8) and (b)(9)(ii) exclude from Part 195 certain facilities, including in-plant piping\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\nsystems associated with refining, and terminal facilities used exclusively to transfer hazardous\nliquid to or between a non-pipeline mode of transportation, respectively.\nWith respect to the in-plant piping exception in § 195.1(b)(8), Part 195 does not apply to the\ntransportation of hazardous liquid or carbon dioxide through onshore production (including flow\nlines), refining, or manufacturing facilities or storage or in-plant piping systems associated with\nsuch facilities. In-plant piping system means, pursuant to § 195.2, piping that is located on the\ngrounds of a plant and used to transfer hazardous liquid or carbon dioxide between plant\nfacilities or between plant facilities and a pipeline or other mode of transportation, not including\nany device and associated piping that are necessary to control pressure in the pipeline under\n§ 195.406(b). With respect to terminal facilities, § 195.1(b)(9)(ii) excepts facilities located on\nthe grounds of a materials transportation terminal if the facilities are used exclusively to transfer\nmaterials between non-pipeline modes of transportation or between a non-pipeline mode and a\npipeline. Like the in-plant piping exception, PHMSA has treated the demarcation point of the\nmaterials terminal facility to be the same as under § 195.1(b)(8).\nPHMSA has previously explained that the point of demarcation between a regulated pipeline and\nunregulated in-plant piping is the inlet of the pressure control device if the pipeline is moving\nproduct away from plant grounds or the outlet of the pressure control device if the pipeline is\nsupplying the plant. If there is no such pressure control device on plant grounds, in-plant piping\nwould extend to the boundary of plant grounds. See, e.g., Regulatory Review: Hazardous Liquid\nand Carbon Dioxide Pipeline Safety Standards, Notice of Proposed Rulemaking, 57 FR 56304,\n56305 (Nov. 27, 1992); and PHMSA Letter of Interpretation to Buckeye Texas Processing, PI-\n20-0004 (Apr. 7, 2020). The regulation does not indicate any other component serves as the\ndemarcation point, such as a meter or leak detection component, if such device is not necessary\nto control pressure in the pipeline under § 195.406(b). See Regulatory Review: Hazardous\nLiquid and Carbon Dioxide Pipeline Safety Standards, Final Rule, 59 FR 33388, 33389 (Jun. 28,\n1994) (recognizing components, such as pipe, meters, instruments, and manifolds, located on\nplant grounds may fall outside Part 195, and affirming the plant boundary is a more convenient\ndemarcation of in-plant piping than an unspecific inside-the-plant component).\nPHMSA has also explained the exception for in-plant piping associated with refining applies\nonly to piping located on the grounds of the plant. If the refinery is separated by a public\nthoroughfare, the exception still applies to transfer piping crossing the road, but the exception\ndoes not apply to inter-facility lines or delivery lines off plant grounds. Final Rule, 59 FR at\n33389.\nWith respect to the terminal facilities exception in § 195.1(b)(9)(ii), Part 195 does not apply to\ntransportation of hazardous liquid or carbon dioxide through facilities located on the grounds of a\nmaterials transportation terminal if the facilities are used exclusively to transfer hazardous liquid\nor carbon dioxide between non-pipeline modes of transportation or between a non-pipeline mode\nand a pipeline. The exception does not include any device and associated piping necessary to\ncontrol pressure in the pipeline under § 195.406(b).\nLike the in-plant piping exception, PHMSA has treated the demarcation point between a\nregulated pipeline and unregulated materials terminal facility to be the pressure control device\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\nthat is necessary to control pressure on the pipeline. PHMSA has also explained the exception\ndoes not include breakout tanks and associated piping, because such facilities are not used\nexclusively for transfers between non-pipeline and pipeline modes. NPRM, 57 FR at 56305.\nWhile PHMSA did not mention demarcation where there is no pressure control device on\nterminal grounds, it is reasonable to apply the same demarcation as the in-plant piping exception,\nnamely, the terminal boundary. The terminal facilities exception applies only to those terminal\nfacilities located on the grounds of the terminal. Terminal facilities located off terminal grounds\ndo not fall within the exception and are, therefore, subject to Part 195. Final Rule, 59 FR at\n33389.\nIn light of the longstanding application of these exceptions, PHMSA recommends that FHR and\nMNOPS jointly evaluate the design and operating specifications of the Airport Pipeline and\ndetermine the demarcation points consistent with this interpretation. In particular, PHMSA notes\nthat FHR has described design limitations of its pipeline in which the pumps cannot cause the\nAirport Pipeline to experience pressures exceeding the maximum operating pressure (MOP) and,\ntherefore, the pipeline is not required to have pressure control devices on the plant grounds. If\nMOP could be exceeded (such as by the outlet pressure capacity of the pump, change-out of a\npump impeller or the closing or opening of a valve) however, the Airport Pipeline must have\nadequate controls and protective equipment to control the pressure within the limits established\nby § 195.406.\nPlease note this interpretation addresses the applicability of Part 195 to the Airport Pipeline\noperated by FHR, and does not address other facilities at or near the Minneapolis St. Paul\nAirport, such as tanks and pipelines operated by Swissport or other entities.\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\nOctober 17, 2019\nBy Electronic Mail\nJohn Gale\nDirector, Office of Standards and Rulemaking\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\n1200 New Jersey Avenue SE\nWashington, DC 20590-0001\nRe: PHMSA Interpretation Issued to Minnesota OPS Dated February 25, 2019\nDear Mr. Gale:\nFlint Hills Resources, LC (FHR) is in receipt of an interpretation dated February 25, 2019\n(Interpretation Response PI-17-0011) that was issued by the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) to the Minnesota Office of Pipeline Safety (MNOPS) regarding\napplicability of 49 C.F.R. Part 195 to an intrastate pipeline operated by FHR that transports jet fuel\nfrom the Flint Hills Resources Pine Bend Refinery to the Minneapolis St. Paul Airport (the Airport\nPipeline). Both PHMSA’s interpretation and the underlying MNOPS’s request for interpretation\nare based on inaccurate information regarding the Airport Pipeline and connecting facilities. The\npurpose of this letter is to provide PHMSA with relevant clarifications regarding the applicable\nFHR assets and their operational characteristics as it relates to PHMSA’s regulatory jurisdiction.\nBased on this information, FHR believes that the beginning and endpoint of Part 195 jurisdiction\noutlined in PHMSA’s Interpretation is not accurate and FHR respectfully requests a revised\ninterpretation pursuant to 49 C.F.R. Part 190.11(b).\nBackground\nFHR operates the Airport Pipeline, which is a 10-inch diameter, 12.9 mile long, intrastate pipeline\nthat transports jet fuel from storage tanks at Flint Hills Resources Pine Bend Refinery (at Gate 20)\nto a jet fuel storage tank facility operated by Swissport Fueling Services (Swissport) at the\nMinneapolis St. Paul Airport. The Airport Pipeline was constructed with an established maximum\noperating pressure (MOP) of 1322 psi based on a post construction pressure test. The pipeline\noperates at a stress level that is well below 20% specified minimum yield strength (SMYS).\nDuring a 2016 MNOPS inspection of the Airport Pipeline, MNOPS raised questions regarding the\nbeginning and endpoints of pipeline safety jurisdiction and requested a letter of interpretation from\nPHMSA in 2017. MNOPS informed FHR of its intention to submit an interpretation request and\nasked if FHR would like to review the submittal and provide information regarding the Airport\nPipeline prior to the submittal, which FHR indicated it would. Then in 2017, FHR discovered that\nMNOPS had submitted the request for interpretation to PHMSA without FHR’s information, after\nwhich FHR submitted process flow diagrams (PFD) and a detailed associated legend regarding the\nP.O. Box 64596 – Saint Paul, Minnesota 55164\n\n<<<PAGE 5>>>\n\nAirport Pipeline to MNOPS (attached as Exhibit A). FHR does not know if the PFD’s were\nsubmitted to PHMSA.\nRelevant Clarifications\nSeveral key operational characteristics regarding the Airport Pipeline and associated facilities\nrequire clarification. These characteristics are critical to determining the beginning and endpoints\nof PHMSA pipeline safety regulatory jurisdiction, and by extension MNOPS as a certified State\nfor intrastate liquid pipelines in Minnesota. They include: (1) normal operating pressure and MOP\nof the Airport Pipeline; (2) pressure control and leak detection at the Flint Hills Resources Pine\nBend refinery; and (3) pressure control and leak detection at the airport, including equipment into\ntanks operated by Swissport. We address below each of these characteristics in order below, with\nreferences to relevant statements contained in the PHMSA Interpretation appearing in bold font,\nfollowed by FHR’s clarifications in italic font. References to FHR’s process flow diagram and\nlegend numbers (Exhibit A) are included below as well.\n1. Operating pressure:\na. “This 13.38 miles of 10-inch diameter pipeline (FHR 10-inch Pipeline) is owned and\noperated by FHR, was built in 1988, and operates above 20% specified minimum yield\nstrength (SMYS).” Interpretation, p. 1 (emphasis added).\nFHR Clarification:\nThe 10-inch diameter Airport pipeline is 12.9 miles from Item 13 to Item 16, and is operated\nby FHR. The MOP of the Airport Pipeline is 1322 psi. Normal operating pressure ranges\nfrom 205 to 250 psi. A pressure control device (i.e., a high-pressure shutdown switch) at\nGate 20 at the refinery is set at 270 psi, which equates to a stress level of approximately\n13.5% of the SMYS accounting for elevation change along the pipeline. The normal\noperating pressure at the receipt station is 57 psi.\nb. “The Swissport pipeline system, including the four 2.2 million gallon tanks and\nmultiple tank outlet pumps and pipelines that supply the MSP airport hydrant system\nis not a low-stress pipeline because it is fed by two regulated pipelines - one with\nmaximum operating pressure (MOP) ranging from 1322 pounds per square inch\ngauge (psig) to 2240 psig with pipe stress at 46.31 to 60.42 percent SMYS and the\nP.O. Box 64596 – Saint Paul, Minnesota 55164\n\n<<<PAGE 6>>>\n\nother with an MOP of 720 psig with pipe stress at 30 percent SMYS.” Interpretation,\np. 2 (emphasis added).\nFHR Clarification:\nSee above explanation. The MOP of the Airport Pipeline is 1322 psi and it operates well\nbelow 20% SMYS.\n2. Refinery Pressure Control and Leak Detection Metering:\na. “Regarding regulatory jurisdiction, under 49 CFR, Part 195, for Items 1-14 and 26\nin Attachment A (Origin Point is at the FHR Refinery Property), FHR must have\nover­ pressure protection for maximum operating pressure control and surge\npressure control at Item 13, see Attachment A. Because the FHR over-pressure\ncontrol and the leak detection system is upstream of Item 13 and is located at Item\n26, the piping and equipment operated by FHR from Item 26 to Item 13 are regulated\nunder 49 CFR Part 195. The FHR 13.38-miles of 10-inch diameter pipeline (FHR 10-\ninch pipeline) from Item 13 to Item 16 is regulated under 49 CFR Part 195 because\nin accordance with Part 195.1(a), it transports \"hazardous liquids or carbon dioxide\nassociated with those facilities in or affecting interstate or foreign commerce.\" This\nregulatory requirement extends to the closest isolation valves upstream of Item 26.”\nInterpretation, p. 4 (emphasis added).\nFHR Clarification:\nAs outlined in the attached PFD and legend, the asset locations and references described\nby PHMSA are incorrect. Most significantly, FHR’s overpressure control and leak\ndetection system is not located at Item 26 on PHMSA’s legend. As discussed above, there\nis a high-pressure shutdown switch at Gate 20 of the refinery and there is no surge relief\nsystem on the pipeline. From Gate 20, the jet fuel is pumped and metered for leak detection\noutbound to the airport. As such, PHMSA regulatory jurisdiction begins at the inlet\n(suction side) to this pump as the first pressure control device associated with the\ndownstream regulated Airport Pipeline (FHR PFD Item 5). In addition, the FHR 10-inch\ndiameter pipeline from Item 13 to Item 16 is 12.9 miles.\n3. Airport Pressure Control and Leak Detection Metering:\na. “The regulated FHR Airport pipeline flows directly into four (4) 2.2 million gallon\ntanks operated by Swissport with a backflow pressure valve near the end of the FHR\npipeline that directs product into the tanks in the event of overpressure. This could\nP.O. Box 64596 – Saint Paul, Minnesota 55164\n\n<<<PAGE 7>>>\n\nbe interpreted as the Swissport tanks relieving surges in the regulated pipeline\n(breakout tanks).” Interpretation, p. 1 (emphasis added).\nFHR Clarification:\nAt the Minneapolis airport, the Airport Pipeline flows to metering equipment used for leak\ndetection (FHR PFD Item 34), and then through piping and valves operated by FHR. A\nbackflow pressure valve operated by FHR (FHR PFD Item 38) then holds pressure on the\nmetering equipment to ensure accuracy. The backpressure valve is not used to direct\nproduct into tankage or to relieve surge. The jet fuel then flows into four (4) 2.2 million\ngallon tanks through valves operated by Swissport. As noted above, the normal operating\npressure at the receipt station is 57 psi.\nb. “As you stated, the regulated high-stress operating pressure FHR 10-inch pipeline\nappears to flow directly into four (4) 2.2 million gallon Swissport tanks with a\nbackflow pressure valve near the end of the FHR 10-inch pipeline that directs product\ninto the tanks in the event of overpressure […].” Interpretation, p. 2 (emphasis added).\nFHR Clarification:\nSee above explanations. The Airport Pipeline operates at less than 20% SMYS and the\nbackflow pressure valve is not used for overpressure protection. The product flows to\nmetering equipment used for leak detection and then through piping and valves operated\nby FHR. As such, PHMSA regulatory jurisdiction of the Airport Pipeline ends at the valves\nimmediately downstream of the meter on the Airport Pipeline (the valves downstream of\nFHR PFD Item 35).\nc. “[…]The four (4) storage tanks (breakout tanks) on the MSP airport property (shown\non Attachment A) and the \"three (3) outgoing pipeline segments\" (operated by\nSwissport with unknown or above 20% SMYS) leaving the tanks that cross public\nroads and are located above public light rail tunnels within the MSP airport facility\nare also regulated under 49 CPR Part 195. The breakout tanks receive product and\nare attached to two (2) upstream regulated pipelines (the FHR 10-inch and the\nMagellan 8-inch Segment #8 pipelines are operated by Swissport within the MSP\nairport fence). Therefore, the four (4) 2.2 million-gallon storage tanks on the MSP\nairport property that receive product from upstream regulated pipelines and deliver\nproduct to regulated downstream pipelines are regulated as breakout tanks under§\n195.1(c). Interpretation, p. 5 (emphasis added).\nFHR Clarification:\nSee above explanations. The product flows to metering equipment used for leak detection\nand then to equipment and piping operated by FHR. As such, PHMSA regulatory\nP.O. Box 64596 – Saint Paul, Minnesota 55164\n\n<<<PAGE 8>>>\n\njurisdiction of the Airport Pipeline ends at the valves immediately downstream of the meter\non the Airport Pipeline.\nSummary\nIn light of the above clarifications, FHR believes that Part 195 regulatory jurisdiction begins at the\ninlet (or suction) side of pump 1 (FHR PFD Item 5) and ends at the valves, immediately\ndownstream of the meter used for leak detection on the Airport Pipeline.\nFHR shares PHMSA’s and MNOPS’s commitment to pipeline safety and integrity and we\nappreciate the Agency’s consideration of this information. We look forward to an updated letter\nof interpretation based upon these facts, characteristics and clarifications, pursuant to 49 C.F.R.\nPart 190.11(b). In the interim, please do not hesitate to contact me with any questions or concerns.\nSincerely,\nKim Gerold\nManager – Pipeline Safety\nFlint Hills Resources\nAttachments\ncc: Tewabe Asebe, PHMSA\nJonathan Wolfgram, Minnesota OPS\nP.O. Box 64596 – Saint Paul, Minnesota 55164\n\n<<<PAGE 9>>>\n\nEXHIBIT A\nAIRPORT STATION & PINE\nBEND JET (GATE 20) PFD\nSWISSPORT\nIRPORT RECENE STATION\n4\n1\n-N\n028\nWV232\nVMOT127\nRECEIVER\n33\nVOT120 & 23\n2,2 WAT128\nTHR REFINERY\nPINE BEND JET (GATE 20)\n238 VMOT125\n020\nAUNCHER\nSTORAGE TANK\n44i73\nWV133\n\n<<<PAGE 10>>>\n\nEXHIBIT A\nProcess Flow Diagram Legend: Airport system January 31, 2018\n1. Pump 1 Suction Valve\n2. Pump 1 Discharge Valve\n3. Pump 1 Bypass Valve (Open when using Unit 2, Unit 1 suction and discharge would be closed)\n4. Pump 1 Suction Pressure Transmitter (Line in Pressure)\n5. Pump 1\n6. Pre- Filter\n7. Pre-Filter\n8. Water Separator (Coalescer)\n9. Water Separator (Coalescer)\n10. Sump\n11. Sump Pump\n12. Flow Meter\n13. Meter Pressure Transmitter\n14. Meter Temperature Transmitter\n15. Prover Loop\n16. Pump 2 Suction Valve\n17. Pump 2 Discharge Valve\n18. Pump 2\n19. Pump 2 Bypass Check Valve (when using unit 1, the unit 2 suction and discharge valves are\nclosed to bypass unit 2\n20. Launcher Trap Inlet Valve\n21. Launcher Trap Bypass Valve (Open during normal operation)\n22. Launcher Trap Outlet Valve/Station Outlet Valve\n23. Launcher Trap\n24. Line Out Pressure Transmitter- Jet Pump Station\n25. Line in Pressure Transmitter - Jet Receive Station\n26. Receiver Trap Inlet Valve\n27. Receiver Trap Bypass Valve (open during normal operations)\n28. Receiver Trap Outlet Valve\n29. Receiver Trap\n30. Pre-Filter\n31. Water Separator (Coalescer)\n32. Sump Pump\n33. Sump\n34. Flow Meter\n35. Meter Temperature Transmitter\n36. Prover Loop\n37. Meter Pressure Transmitter\n38. Meter Back Pressure Valve (mechanically set to hold back pressure to meter for meter accuracy)\n39. Refinery Booster\n40. Refinery Booster Discharge Valve\n41. Refinery Booster Suction Valve","truncated":false,"body_characters":22632}