{"operation":"document","citation":"PI-20-0010","title":"Counsel for MarkWest — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2020-10-05","effective_on":null,"summary":"PI-20-0010 response to Counsel for MarkWest concerning 192.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-20-0010.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-20-0010.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-20-0010","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/74546/markwest3-pi-20-0010-10-22-2020-part192-3-signed.pdf","body":"<<<PAGE 1>>>\n\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration October 26, 2020\nMr. Keith J. Coyle\nBabst, Calland, Clements and Zomnir, P.C.\nCounsel for MarkWest\n505 9th Street, NW, Suite 700\nWashington, DC 20004\nDear Mr. Coyle:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), dated\nApril 27, 2020, MarkWest requested that PHMSA clarify a statement in a supplemental\ninterpretation issued by the agency on April 7, 2020. In the supplemental interpretation,\nPHMSA confirmed an earlier interpretation dated October 15, 2019, that pipelines delivering gas\nto MarkWest’s gas processing plant were transmission lines. PHMSA described the pipelines as\ndelivering off-gas from refineries to the MarkWest Javelina processing plant, where the plant\n“uses the off-gas as chemical and plastic feedstocks and sends residue gas back to the refineries”\nfor their use as fuel. The interpretation noted that the plant processed approximately 28,000\nbbl/day of liquid hydrocarbons in this manner. PHMSA stated further that it disagreed with\nMarkwest’s opinion that the gas processing plant is not a large volume customer for purposes of\nthe transmission line definition in § 192.3.\nIn its April 27, 2020 letter, MarkWest asserted that during a November 19, 2019, meeting with\nPHMSA, the company indicated that none of the refinery off-gas received at the plant is used as\na feedstock for other products, but rather MarkWest processes the off-gas to create pipeline-\nquality gas for delivery to another downstream customer. Unless something has significantly\nchanged in its processing of the feedstock into chemical feedstocks, this assertion appears to be\ninconsistent with information MarkWest provided to PHMSA on November 14, 2016, which\nexplained in more detail how the Javelina plant separates off-gas into valuable components—as\nthe off-gas contains light hydrocarbon components that are more valuable as chemical and\nplastic feedstocks. In addition, the information provided by MarkWest on November 14, 2016,\nappears to be consistent with information provided to PHMSA by the Texas Railroad\nCommission. The products produced include propane, butane, ethane, and other NGLs. In\naddition, PHMSA notes that the Javelina plant receives up to 142 mmscfd of off-gas from\nrefineries, a volume consistent with, if not exceeding, volumes received by large volume\ncustomers. Accordingly, PHMSA finds no reason to modify its April 7, 2020, interpretation.\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\nFinally, as this pipeline is regulated by the Texas Railroad Commission, PHMSA encourages\nMarkWest to work directly with its regulator to resolve any future issues.\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 3>>>\n\nApril 27, 2020\nJohn A. Gale\nDirector, Office of Standards and Rulemaking\nOffice of Pipeline Safety (PHP-30)\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\n1200 New Jersey Avenue, S.E.\nWashington, DC 20590-0001\nRe: Response to Supplemental Written Regulatory Interpretation\nDear Mr. Gale:\nThe Office of Pipeline Safety (OPS) recently responded to a supplemental request for\nwritten regulatory interpretation from MarkWest Javelina Pipeline Company, L.L.C. (MarkWest).\nIn the supplemental interpretation letter, OPS affirmed the guidance provided in a prior\ninterpretation letter that several pipelines that transport off-gas from refineries to a natural gas\nprocessing plant in Corpus Christi, Texas, should be classified as transmission lines under 49\nC.F.R. Part 192. OPS also affirmed its prior guidance that the gas processing plant qualifies as a\nlarge volume customer under the transmission line definition in 49 C.F.R. § 192.3.\nMarkWest is respectfully requesting that OPS clarify a factual statement in the\nsupplemental interpretation letter. Specifically, OPS states in the large volume customer analysis\nthat “the gas processing plant uses the off-gas as chemical and plastic feedstocks[.]” However, as\nMarkWest indicated during its November 19, 2019, meeting with OPS staff, none of the refinery\noff-gas received at the Corpus Christi plant is used as a feedstock for other products. MarkWest\nprocesses the off-gas to create pipeline-quality gas for delivery to another downstream customer.\nTo the extent that fact is material to the large volume customer analysis, MarkWest is respectfully\nrequesting that OPS take appropriate action to clarify the supplemental interpretation letter.\nMarkWest appreciates OPS’s efforts in this matter. If you have any additional questions or\nconcerns, please feel free to contact me at 202-853-3460 or kcoyle@babstcalland.com.\nRespectfully Submitted,\n/s/ Keith J. Coyle\nKeith J. Coyle\nBabst, Calland, Clements & Zomnir, P.C.\n505 9th St. NW, Suite 700\nWashington DC, 20004\n(202) 853-3460\nkcoyle@babstcalland.com\nCounsel for MarkWest","truncated":false,"body_characters":6036}