{"operation":"document","citation":"PI-22-0012","title":"IACX Roswell, LLC — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2022-10-03","effective_on":null,"summary":"PI-22-0012 response to IACX Roswell, LLC concerning 192.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0012","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/76826/iacx-pi-22-0012-10-03-2022-part1921.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nOctober 03, 2022\nMr. Justin Wheeler\nDirector of Environmental, Health and Safety\nIACX Roswell, LLC\n5001 LBJ Freeway\nSuite 300\nDallas, TX 75244\nDear Mr. Wheeler:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), dated\nJune 6, 2022, you requested an interpretation of the Federal pipeline safety regulations in\n49 Code of Federal Regulations (CFR) Part 192 with respect to the scope of § 192.1 for your\n12.750-inch diameter pipeline.\nYour submitted documentation shows the pipeline named Bitter Lakes residue gas pipeline is\nlocated near Roswell, New Mexico and has the following characteristics: 3.68 miles long,\n12.750-inch diameter, operated above 20 percent specified minimum yield strength (SMYS), and\nlocated in a Class 1 location. Also, the pipeline's established maximum allowable operating\npressure is 1,200 pounds per square inch gauge (psig) with a nominal operating pressure of\nbetween 750 psig to 900 psig. The design pressure of the pipeline is 1,458 psig and the over\npressure protection of the pipeline is through a relief valve that is set at 1,025 psig. The pipeline\ntransports natural gas from the Bitter Lakes compressor station where the gas is treated to\nremove water, moisture, inert gas via membrane filtration, dew point control, liquids recovery,\nand compressed to flow directly to the end point where the pipeline terminates downstream at the\nTranswestern transmission line connection.\nYou believe the pipeline meets the definition of the API RP 80, Section 2.2.1.2.6 - Incidental\nGathering and should be regulated as a Type C gathering pipeline and, therefore, request\nPHMSA’s confirmation.\nPHMSA’s 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\napplication of the regulations to the specific facts presented by the person requesting the\nclarification. Interpretations are not generally applicable, do not create legally-enforceable rights\nor obligations, are not fact-finding tools, and are provided to help the specific requestor\nunderstand how to comply with the regulations.\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\nPage 2 of 2\nBased on the information you provided, PHMSA agrees that a 12.750-inch diameter, 3.68-miles\nlong pipeline, located in a Class 1 location, and operates at above 20% SMYS meets the\nregulatory requirements of a Type C gathering pipeline. For regulatory requirements, please\nrefer to the November 15, 2021, final rule published in the Federal Register [86 FR 63266] (see\n§§ 192.8(a)(5), 192.8(c), 192.9(e), 192.9(g), 192.452(c), 192.619(a)(3) and 192.619(c)(2)).\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 3>>>\n\n~ALTAMIRA\n'-'\nJune 06, 2022\nPipeline and Hazardous Materials Safety Administration\nOffice of Standards and Rulemaking\nU.S. Department of Transportation\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nUnited States\nRe: IACX Energy, LLC Request for Written Regulatory Interpretation\nIACX Energy, LLC (IACX) is requesting a written regulatory interpretation on one of its pipelines (the\n\"Roswell 12-inch Bitter Lakes line\") relative to 49 CFR Part 192 Gas Gathering Line Definition for Onshore\nGas Gathering Lines and Pipeline Safety: Safety of Gas Gathering Pipelines: Extension of Reporting\nRequirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments, New Safety\nStandards, Final Rule, Federal Register, Vol. 86, No. 217, November 15, 2021. IACX's determination, in\naccordance with the above-referenced regulation, is that the Roswell 12-inch Bitter Lakes line will become\na Type C regulated gathering line on May 16, 2022, the effective date of the above-referenced regulation\n(see attached IACX PSB Follow-up Letter and IACX Energy Roswell 12\" Bitter Lakes Pipeline\nreview documents, submitted to the New Mexico Public Regulation Commission on August 4, 2021 and\nDecember 16, 2021, respectively). IACX is making this request based at the direction of the New\nMexico Public Regulation Commission, as the commission has not concluded an exact determination for\nthe pipeline.\nAs illustrated in Figure 2-6 of section 2.2.1.2.6 of API RP-80, IACX's gathering endpoint is the Bitter Lakes\ntreatment plant. The 12-inch Bitter Lakes line then directly connects to the Transwestern transmission\nline a distance of 3.68 miles away, therefore connecting \"incidental gathering\" line with the endpoint of\ngathering being its connection with the downstream Transwestern transmission line (see attached\nschematic of the Bitter Lakes Gathering System).\nBased on previous PHMSA interpretations (Pl-09-0008 July 30, 2009) and (Pl-09-0002 July 14, 2009)\nincidental gathering designations were permissible due to what was considered a drafting error. To\nIACX's knowledge, no other related rulemaking has been issued until the November 2021 publication of\nthe final gas gathering rule. IACX's understanding of Safety of Gas Gathering Pipelines: Extension of\nReporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments, New\nSafety Standards, Final Rule, Federal Register, Vol. 86, No. 217 is that the incidental gathering concept as\ndescribed in API RP-80 may not be used for new, replaced, relocated, or otherwise changed gas gathering\nline installed after the effective date of the final rule (May 16, 2022) if the endpoint is 10 miles or more\nfrom the furthest downstream point where a gathering line begins as determined in paragraphs\n2.2(a)(l)(A) through (a)(l)(D) of API RP-80. Incidental gathering lines existing on or before the effective\ndate of the rule may continue to operate as a gathering line, regardless of length. The Roswell 12-inch\nBitter Lakes line was existing prior to the final rule.\n1\nALTAMIRA-US.COM\n\n<<<PAGE 4>>>\n\n~ALTAMIRA\n'-'\nIACX expects to operate the Roswell 12-inch Bitter Lakes line as a \"regulated gas gathering line\" under a\nType C designation based on the final rule. IACX respectfully requests a written regulatory interpretation\nof its determination that the Roswell 12-inch Bitter Lakes line as of May 16, 2022, is a regulated, Type C\ngathering line. Please call me at 972-679-2147 with any questions regarding this request.\nSincerely,\nJustin Wheeler\nDirector of EHS\nIACX Roswell, LLC\nj ustinwheeler@iacx.com\nAttachments:\nBitter Lakes System Schematic\nAPI RP-80 2.2.1.2.6 Incidental Gathering Reference\nAugust 2021 Letter to NM PRC\nDecember 2021 Pipeline Review Letter to NM PRC\n2\nALT AMIRA-US.COM\n\n<<<PAGE 5>>>\n\nAttachment 1\n\n<<<PAGE 6>>>\n\nCommingled Wells\n-\n-\n-\n-\n-\nBitter Lakes Gathering System Schematic\nBegin Gathering\nWright\nCompressor\nStation\nBitter Lakes\nTreatment Plant\nGathering< 50 miles\nTranswestern\nTransmission\nline\nGathering\n12\" Bitter\nLakes Line\n(3.68 miles)\nEnd Gathering\n(2.2.1.2 API RP-80)\nIncidental Gathering\nBeginning & End Points\n(2.2.1.2.6 API RP-80)\n\n<<<PAGE 7>>>\n\nAttachment 2\n\n<<<PAGE 8>>>\n\nAPI RP-80 2.2.1.2.6 Incidental Gathering Reference\n2.2.1.2.6 Incidental Gathering\nIn the case of gas processing or gas treatment, the connec•\ntion to a transmission line is generally contained within the\nboundaries of the facility. Tlrls is not always the case, how•\never. The gathering line operator may have to move the gas\nthrough a pipeline some additional distance from the plant to\nanother pipeline. The pipeline moving the gas from the plant\nto another pipeline is termed \"'incidental gathering.\" The\n.. incidental gathering\" res\\lllles at the plant outlet and contin-\nues to the other pipeline connection. Incidental gathering may\nalso occur when a compressor is a potential endpoint. Inci-\ndental gathering normally is present when the point of last\ncommingling is the last .. identified endpoint.\" From a func-\ntional standpoint, this section of incidental gathering line is\nno different from the rest of the gathering system. The defini•\ntion, therefore, includes recognition that gathering may con-\ntinue downstream of the last endpoint identified by\nprocessing. treatment. commingling, or compression activi-\nties to the comection with another pipeline. Figure 2\"'6 illuse\ntrates thls concept.\nFurthermost\nDownstream\nOther\n••--pipeline\nPoint\nin Production\nOperation\n...------. I Furthermost Downstream Gas\nIncidental\nGathering\nProduction ..,_ ...... Processing Plant, Gas Treatment\n1 0 _\nOperation Facility, Gas Compression, or .. '\nPoint of Last Commingling\n\"Incidental gathering\" is the\nadditional downstream\ngathering pipeline sometimes\nneeded to connect the outlet\nof an identified gathering\nendpoint with a transmission\nline. distribution line, or other\npipeline facility.\nGathering\nFunction\nFigure 2--6-lncidental Gathering Downstream of an Identified Endpoint\n\n<<<PAGE 9>>>\n\nAttachment 3\n\n<<<PAGE 10>>>\n\nAugust 4, 2021\nKevin Duke, Pipeline Safety Inspector\nPublic Regulation Commission\nPipeline Safety Bureau\n1120 Paseo De Peralta, Rm. 416\nP.O. Box 1269\nSanta Fe, NM 87504\nRe: IACX-Roswell Standard Inspection\nDear M r. Duke,\nThis letter is to document the July 28, 2021, Zoom teleconference agreement between the IACX Roswell\nOperations Team and the NM-Pipeline Safety Bureau regarding the Bitter Lakes 12\" line. In this discussion\nit was agreed that based on API RP-80 and 49 CFR 192.9, that the 12\" discharge line from Bitter Lakes to\nthe Transwestern line tie-in is, 1) classified as an incidental gathering line, and 2) the line is a non-regulated\nonshore gathering line.\nThis determination by your office, removes this line as a regulated line, thus not applicable to PHMSA and\nNew M exico Pipeline Safety Bureau purview.\nPlease let us know if you have any questions or if we need to make further clarification of this agreement.\nLastly, thank you for your time and assistance in helping us understand the applicable regulations.\nBest Regards,\nJustin Wheeler\nDirector of EHS\nIACX Energy\n972-679-2147\njustinwheeler@iacx.com","truncated":false,"body_characters":11213}