{"operation":"document","citation":"PI-21-0003","title":"Pennsylvania Public Utility Commission — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2021-09-01","effective_on":null,"summary":"PI-21-0003 response to Pennsylvania Public Utility Commission concerning 192.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-21-0003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-21-0003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-21-0003","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/75856/pennsylvania-puc-pi-21-0003-09-01-2021-part1923.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration September 1, 2021\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nMs. Stephanie M. Wimer\nSenior Prosecutor\nPennsylvania Public Utility Commission\n400 North Street\nHarrisburg, PA 17120\nDear Ms. Wimer:\nIn a January 29, 2021, letter to the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), you requested an interpretation of 49 CFR Part 192. Specifically, you requested an\ninterpretation of the definitions of “service line” and “operator” under § 192.3.\nYou provided the following background. The Pennsylvania Public Utility Commission’s Bureau\nof Investigation and Enforcement (“I&E”) is investigating an April 9, 2020, natural gas\nexplosion. The suspected cause of the explosion is a leak on a consumer-owned line connected\nto an unregulated well pad production pipeline. The leak was upstream of the outlet of the\nmeter. I&E seeks to determine whether the portion of consumer-owned line that experienced the\nleak met the definition of “service line” set forth in § 192.3 at the time of the incident and\nwhether the producer was the operator of this portion of the line. You provided the following\nadditional information.\nA gas well is located on the property of House A and the well supplies gas to House A\nand to a neighboring property House B. There is one tap off of the production line for the\nconsumer-owned lines that take natural gas to House A and House B. The tap is located\non the property of House A and there is a T (tee) and a shut-off valve on each side of the\ntap. The meter and regulator for the line to House A are immediately adjacent to the tap.\nPrior to the end of March 2020, the meter and regulator for the line to House B have also\nbeen immediately adjacent to the tap; however, less than one month prior to the\nexplosion, the owners of House B relocated the meter and the regulator to the property of\nHouse B and closer to their residential structure. At the tapping point, the line is split to\nserve House A and House B. The line to House B originates on House A’s property,\ncrosses a public township road and then ends on House B’s property. Prior to the end of\nMarch 2020, the pressure in the production line upstream of both regulators for House A\nand House B was 10 pounds per square inch gauge (psig) and the pressure in the lines\ndownstream of both regulators was approximately 4-6 ounces (1/4 to 3/8 psig).\nSubsequent to the relocation of the meter and regulator for House B, the pressure in the\nline upstream of the relocated House B regulator (downstream from the original regulator\nlocation) increased from 4-6 ounces to 10 psig and the suspect leak on the consumer-\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 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\nowned line to House B is to be the cause of the explosion that demolished House A. The\nleak occurred on the line to House B between the split and relocated meter and regulator.\nThe producer maintains a lease agreement with House A, which provides that the\nproducer’s responsibilities end for installing and maintaining a meter and at the\nproduction line tap valve, and that House A is responsible for making its own\nconnections at a point designated by the producer in addition to installing and\nmaintaining a regulator. The lease agreement was extended to the owners of House B\nand when House B relocated the meter and regulator at the end of March 2020, House B\nnotified the producer of its intentions to move the meter and regulator, and received\npermission from the producer to move the producer’s meter.\nThe producer is not registered with the Commission as an Act 127 pipeline operator and,\ntherefore, the aforementioned pipelines were not reported as jurisdictional assets in\nPennsylvania. Additionally, the producer does not have a PHMSA Operator ID as it does\nnot define itself as an “operator” pursuant to 49 CFR § 192.3.\nOn March 8, 2021, PHMSA asked Pennsylvania PUC to respond to several questions and\nPennsylvania PUC responded on March 11, 2021.\nWith your original request, you provided a map depicting the configuration of the pipeline\nfacilities at the incident site. In addition, you mentioned PHMSA provided guidance on the\napplicability of certain farm taps required by Kentucky state law to PHMSA’s regulation at\n§ 192.740 and provided a link to the guidance.\nYour questions and PHMSA’s responses are as follows:\nQuestion 1: Is the House B line from the split at the tap to the outlet of the relocated House B\nmeter a service line pursuant to 49 CFR § 192.3?\nResponse to question 1:\nUnder 49 CFR § 192.3, a service line is any distribution line that transports gas from a common\nsource of supply to an individual customer through a meter header or manifold. Under certain\ncircumstances, a service line may also be referred to as a “farm tap,” which is the common name\nfor a pipeline directly connected to a gas transmission, production, or gathering pipeline that\nprovides gas to a customer.\nOn a farm tap, the “source” piping ends and the service line begins at the first accessible point\nwhere the downstream service line can be isolated from source piping (e.g., the inlet to a valve or\nregulator). In this case, this point appears to be the shut-off valve downstream of the tap.\nPHMSA notes that additional safety regulations govern service-line valves, including the\nlocation of valves pursuant to § 192.365, and operators must comply with applicable\nrecordkeeping requirements in Part 192.\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 form 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\n3\nUnder the definition of service line, § 192.3, the service line ends at the outlet of the customer\nmeter or at the connection to a customer’s pipeline, whichever is further downstream, or at the\nconnection to customer piping if there is no meter. Here, the House B line transports gas from\nthe production line to the customer. The service line would end at the outlet of the meter, or the\nconnection to customer owned piping, whichever is further downstream. Since the outlet of the\nmeter is further downstream than the connection to customer owned piping, the service line\nwould end at the outlet of the relocated meter.\nQuestion 2: Does the lease agreement, which provides that the operator is responsible for the\nmeter and House B is responsible for the regulator and all other piping from the production line\ntap valve, impact the determination of whether the line is a service line?\nResponse to question 2: No. The private lease agreement does not impact the determination of\nwhether the line is a service line under 49 CFR § 192.3.\nQuestion 3: Given the above-described configuration, is the producer an “operator” as defined in\n49 CFR § 192.3?\nResponse to question 3: Yes. An “operator” is a person who engages in the transportation of\ngas, which includes the distribution of gas by pipeline in or affecting interstate commerce (49\nCFR §§ 191.3 and 192.3). From the information provided, the producer provided natural gas\nfrom its production line to the consumers which was measured by the producer-owned customer\nmeter. While production lines are not regulated, 49 CFR Parts 191 and 192 apply to distribution\nlines regardless of whether the “common source of supply” is a regulated line. Therefore,\nbecause the producer is engaged in the transportation of natural gas via a regulated service\npipeline, it is an operator under 49 CFR Parts 191 and 192 and must comply with all applicable\nrequirements contained therein on the “service line” defined in the Response to question 1.\nKeep in mind that this response letter reflects the agency's application of the regulations based on\nour understanding of the specific facts as presented by the person requesting the clarification.\nInterpretations do not create legally enforceable rights or obligations and are provided to help the\npublic understand how to comply with the regulations.\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\n(49 CFR Parts 190-199) in the form 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 4>>>\n\nCOMMONWEALTH OF PENNSYLVANIA\nPENNSYLVANIA PUBLIC UTILITY COMMISSION\nCOMMONWEALTH KEYSTONE BUILDING\n400 NORTH STREET, HARRISBURG, PA 17120\nJanuary 29, 2021\nBUREAU OF\nINVESTIGATION\n&\nENFORCEMENT\nVia Electronic Mail\nMr. John A. Gale\nDirector, Office of Standards and Rulemaking\nU.S. Department of Transportation\nPipeline and Hazardous Materials Safety Administration\n1200 New Jersey Avenue SE\nWashington, DC 20590\nJohn.Gale@dot.gov\nRe: Request for Written Regulatory Interpretation;\n49 CFR § 192.3 Related to Definition of “Service Line”\nDear Mr. Gale:\nThis letter represents a request from the Safety Division of the Pennsylvania Public\nUtility Commission’s (“Commission”) Bureau of Investigation and Enforcement (“I&E”) for an\ninterpretation of the Pipeline and Hazardous Materials Safety Administration (“PHMSA”)\nregulations at 49 CFR § 192.3 (related to the definition of a “service line”) and its applicability to\na pipeline configuration where an April 9, 2020 natural gas explosion occurred. The suspected\ncause of the explosion originated from a leak on a consumer-owned line connected to an\nunregulated well pad production pipeline. The leak was upstream of the outlet of the meter.\nI&E seeks to determine whether the portion of consumer-owned line that experienced the leak\nwas subject to the definition of “service line” set forth in 49 CFR § 192.3 at the time of the\nincident and whether the producer was responsible for this portion of the line.\nThe I&E Safety Division participates in PHMSA’s State Pipeline Safety Program.\nThrough its agreement with PHMSA and participation in the Program, the I&E Safety Division\nhas assumed the safety responsibilities of intrastate pipeline facilities in Pennsylvania over which\nit maintains jurisdiction as authorized by state law.\nPursuant to Pennsylvania’s Gas and Hazardous Liquids Pipelines Act, 58 P.S. § 801.101\net seq. (“Act 127”), the Commission has authority to regulate and supervise pipeline operators\nwithin Pennsylvania consistent with Federal pipeline safety laws. 58 P.S. § 801.501(a). Pipeline\noperators are defined as “a person that owns or operates equipment or facilities in this\nCommonwealth for the transportation of gas or hazardous liquids by pipeline or pipeline facility\nregulated under Federal pipeline safety laws.” 58 P.S. § 801.102 (emphasis added). Pipeline\noperators are required to register with the Commission by March 31 of each year and report\ngathering, transmission and distribution pipeline mileage in class 1, 2, 3 and 4 locations for the\npreceding calendar year. See 58 P.S. § § 801.301(c)(1) and Act 127 of 2011 – The Gas and\nHazardous Liquids Pipeline Act; Assessment of Pipeline Operators, Docket No. M-2012-\n2282031 (Final Implementation Order entered February 17, 2012).\n\n<<<PAGE 5>>>\n\nMr. John A. Gale\nJanuary 29, 2021\nPage 2\nThe I&E Safety Division is investigating a natural gas explosion that occurred on April 9,\n2020 in Washington Township, Greene County, Pennsylvania on a line that I&E views to be a\nfarm tap. The explosion demolished a residence, referenced herein as “House A.” A gas well is\nlocated on the property of House A. This gas well feeds a non-jurisdictional production pipeline\nthat is the source of natural gas provided to House A and a neighboring property, referred to as\n“House B.\n” A leak on the consumer-owned line to House B is suspected to be the cause of the\nexplosion that demolished House A.\nFor the consumer-owned lines that take natural gas to House A and House B, there is one\ntap off of the production line. The tap is located on the property of House A. At the tap, there is\na T and a shut-off valve on each side of the tap. The meter and regulator for the line to House A\nare immediately adjacent to the tap. Prior to the end of March 2020, the meter and regulator for\nthe line to House B had also been immediately adjacent to the tap. However, less than one\nmonth prior to the explosion, the owners of House B relocated the meter and regulator to the\nproperty of House B and closer to their residential structure.\nAt the tapping point, the line is split to serve House A and House B. The line to House B\noriginates on House A’s property, crosses a public township road and then ends on House B’s\nproperty. A map depicting the configuration of the pipeline facilities at the incident site follows.\nPrior to the end of March 2020, the pressure in the production line upstream of both\nregulators for House A and House B was 10 pounds per square inch, gauge (“PSIG”) and the\npressure in the lines downstream of both regulators was approximately 4-6 ounces. Subsequent\nto the relocation of the meter and regulator for House B, the pressure in the line upstream of the\nrelocated House B regulator (downstream from the original regulator location) increased from 4-\n\n<<<PAGE 6>>>\n\nMr. John A. Gale\nJanuary 29, 2021\nPage 3\n6 ounces to 10 PSIG. The leak occurred on the line to House B between the split and relocated\nmeter and regulator.\nThe producer maintains a lease agreement with House A, which provides that the\nproducer’s responsibilities end at the production line tap valve, and that House A is responsible\nfor making its own connections at a point designated by the producer in addition to installing and\nmaintaining a regulator. The lease agreement further provides that the producer is responsible\nfor installing and maintaining a meter. These provisions of the lease agreement were extended to\nthe owners of House B upon a conveyance of a portion of the original House A property. When\nHouse B relocated the meter and regulator at the end of March 2020, House B notified the\nproducer of its intentions to move the meter and regulator, and received permission from the\nproducer to move the producer’s meter.\nBut for the lease agreement, House A and House B likely would not be served with\nnatural gas. I&E estimates that between 5,000 and 7,000 farm taps exist in Pennsylvania, where\nindividual consumer lines are directly connected to unregulated production pipelines and such\nconsumers are served with natural gas via lease agreements, similar to the instant arrangement.\nThe producer is not registered with the Commission as an Act 127 pipeline operator and,\ntherefore, the aforementioned pipelines were not reported as jurisdictional assets in\nPennsylvania. Additionally, the producer does not have a PHMSA Operator ID as it does not\ndefine itself as an “operator” pursuant to 49 CFR § 192.3.\nI&E notes that the definition of “service line” provides, in pertinent part, that it “ends at\nthe outlet of the customer meter or at the connection to a customer’s piping, whichever is further\ndownstream, or at the connection to customer piping if there is no meter.” 49 CFR § 192.3.\nPHMSA recently elaborated on the definition of service line as it relates to farm tap applications.\nSee Pipeline Safety: Gas Pipeline Regulatory Reform, 86 Fed. Reg. 2210 at 2212-14 (January 11,\n2021). Providing gas to farm tap customers is not defined as a gathering or production function\nand may include a regulated service line. Id. at 2214. Furthermore, a farm tap facility may meet\nthe definition of a “service line” even if the source of the pipeline is not regulated by PHMSA.\nId. at 2212. Moreover, it is not necessary, under certain configurations, for the operator to be\nresponsible for maintaining the piping in order for a facility to be deemed a service line. Id. at\n2214.\nI&E also notes that PHMSA provided guidance on the applicability of certain farm taps\nrequired by Kentucky state law to PHMSA’s regulation at 49 CFR § 192.740. See PHMSA letter\ndated November 5, 2018 and addressed to the Chairman of the Kentucky Public Service\nCommission.\n1 In the letter, PHMSA stated that farm taps meet the definition of service lines,\nand the piping and appurtenances that comprise a farm tap that are owned or maintained by an\nentity engaged in the transportation of gas are subject to the requirements of Parts 191 and 192 as\na distribution service line. Letter at 1. PHMSA reiterated that a service line ends at the\n1 A link to the letter follows: kentucky-psc-pi-18-0019-11-05-2018-part-192740.pdf (dot.gov)\n\n<<<PAGE 7>>>\n\nMr. John A. Gale\nJanuary 29, 2021\nPage 4\nconnection to customer-owned piping or at the outlet of the meter, whichever is further\ndownstream. Id.\nRegarding the incident that is the subject of I&E’s investigation, the leak that precipitated\nthe explosion occurred on a portion of the pipe that was owned and maintained by the customer,\nbut upstream of the meter. The meter, as mentioned above, was relocated by the owners of\nHouse B with the permission of the producer less than one month prior to the incident.\nI&E’s questions to PHMSA are as follows:\n(1) Is the House B line from the split at the tap to the outlet of the relocated House B\nmeter a service line pursuant to 192 CFR § 192.3?\n(2) Does the lease agreement, which provides that the operator is responsible for the\nmeter and House B is responsible for the regulator and all other piping from the\nproduction line tap valve, impact the determination of whether the line is a service\nline?\n(3) Given the above-described configuration, is the producer an “operator” as defined in\n192 CFR § 192.3?\nThank you for your consideration in this matter. Should you have any questions or seek\nfurther clarification or details with respect to this request, please do not hesitate to contact the\nundersigned.\nSincerely,\nStephanie M. Wimer\nSenior Prosecutor\nPA Attorney ID No. 207522\nPA Public Utility Commission\nBureau of Investigation and Enforcement\n(717) 772-8839\nstwimer@pa.gov\ncc: Richard A. Kanaskie, Director, I&E (via e-mail only)\nMichael L. Swindler, Deputy Chief Prosecutor, I&E (via e-mail only)\nRobert D. Horensky, Manager, I&E Safety Division (via e-mail only)","truncated":false,"body_characters":19259}