{"operation":"document","citation":"PI-22-0015","title":"Anheuser-Busch, LLC — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2023-03-31","effective_on":null,"summary":"PI-22-0015 response to Anheuser-Busch, LLC concerning 192.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0015.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0015.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0015","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/77276/anheuser-busch-llc-pi-22-0015-3-20-2023-part-1921.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nMarch 20, 2023\nMr. Kevin Fahrenkrog\nSr. General Manager\nAnheuser-Busch, LLC\n100 Busch Drive\nCartersville, GA 30121\nDear Mr. Fahrenkrog:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), dated\nFebruary 19, 2021, you requested an interpretation of the Federal pipeline safety regulations in\n49 Code of Federal Regulations (CFR) Part 192 with respect to where the Federal pipeline safety\nregulations become applicable to the Anheuser-Busch, LLC (Anheuser-Busch) biogas pipeline\nwithin the Anheuser-Busch beer production facility (Brewery) in Cartersville, Georgia.\nYou stated that both the Brewery and adjacent biogas production facility are owned by\nAnheuser-Busch and are divided by Interstate Highway 75 (I-75). You stated that the biogas\nproduction facility is on the west side of I-75 and the Brewery is on the east side of I-75. Your\nletter explained that wastewater from brewery processes flows via gravity through a tunnel under\nI-75 to the biogas production facility. After compression, cooling, and filtering the produced\nbiogas (which you indicate is composed primarily of methane and carbon dioxide) is transported\nback to the Brewery by pipeline and used to fuel boilers.\nYour letter explains the Georgia Public Service Commission (GPSC) has stated the compressors\nat the biogas production facility and the downstream pipeline to the beer production facility are\nregulated under 49 CFR Part 192. You stated you agree with GPSC that the pipeline that\ntransports the biogas under I-75 to the Brewery is a regulated “transmission line” under 49 CFR\nPart 192, because the pipeline transports gas to a large volume customer. However, you disagree\nwith GPSC’s position that the compressors and related equipment upstream from the\ntransmission line are also regulated. Therefore, you have requested PHMSA’s interpretation as\nto where the Federal pipeline safety regulations start.\nThe Federal pipeline safety laws at 49 U.S.C. § 60101 et seq. and applicable regulation under\nthat law at 49 CFR Part 192, generally apply to the gathering, transmission, and distribution of\nnatural and other gas by pipeline. The definition of a “pipeline” at § 192.3 includes its related\nequipment, to include compressors and other appurtenances.\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 3\nHowever, as established in § 192.1, 49 CFR Part 192 does not apply to the onshore gathering of\ngas through a pipeline that is not a “regulated onshore gathering line” as determined in § 192.8.\n1\nFor the reasons you explained in your letter (a biogas production facility in a Class 1 location is\nnot described as “regulated onshore gathering lines” in § 192.8(b) and its accompanying table,\nnor under the relevant API RP 80 provisions incorporated by reference into 49 CFR Part 192),\nPHMSA agrees that the compressors and related equipment at your biogas production facility are\nnot “regulated onshore gathering lines” as described by § 192.8. Therefore, the compressors and\nupstream equipment in the biogas production facility are not subject to the 49 CFR Part 192\npipeline safety regulations.\nPHMSA received a flow diagram of the biogas compressors from GPSC and agrees with you\nthat the compressors are not regulated because the pipeline pressure downstream of the\ncompressor is controlled from overpressure. The downstream pipeline and overpressure\nprotection are regulated pipeline facilities, see § 192.195 for requirements on protection against\naccidental overpressuring. The Anheuser-Busch list of “Fault/Flare conditions for pretreatment”\nstates, “if the closed-circuit cooler cuts off, then the biogas compressor shuts off, and flow is\nthen diverted through the biogas flare valves”). PHMSA also agrees with your letter that per the\ndefinition of “transmission line” at § 192.3, that the pipeline downstream of the compressor that\ntransports gas back to the Brewery is a regulated pipeline because it serves a large volume\ncustomer. As you described in your letter, one definition of a transmission line includes\npipelines transporting gas from a gathering line to a large volume customer that is not\ndownstream from a distribution center. A large volume customer includes factories and other\nanalogous facilities to your Brewery.2 Gas can be in transportation and subject to the Federal\npipeline safety regulations even if it is produced, transported, and consumed by the same entity.3\n1 See 49 C.F.R. § 192.1(b)(4).\n2 61 Fed. Reg. 28,770-72 (June 6, 1996).\n3 See, e.g., Marathon Pipeline L.L.C.., PHMSA Interp. # PI-09-0009 (June. 24, 2009). See also, Illinois Commerce\nCommission, PHMSA Interp. # PI-09-0020 (Aug. 11, 2010) (“Because the coke oven gas is produced in one GCW\nfacility and is transported to another GCW facility under public right-of-way and public sidewalk, this pipeline is\nsubject to the pipeline safety regulations.”)The 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\nPage 3 of 3\nWhile PHMSA agrees with the assertion in your letter that the pipeline downstream of the\ncompressor is regulated by Part 192, you should be aware that the Federal pipeline safety\nregulations are minimum pipeline safety standards. Further, a State, such as GPSC in this case,\nmay have more stringent pipeline safety regulations and/or other authority to regulate the safety\nof facilities including gas compression facilities such as Anheuser-Busch’s Cartersville plant.\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\nAttachments\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\nONE' OF THE ANHEUSER BUSCH COMPANIES\nCertified Mail: 7015 0640 0002 0378 0306\nFebruary 19, 2021\nAnheuser-Busch LLC.\n100 Busch Dr.\nCartersville, GA 30121\nOffice of Pipeline Safety (PHP-30)\nPHMSA\nU.S. Department of Transportation\n1200 New Jersey Avenue SE.\nWashington, DC 20590-0001\nRE: Request for Interpretation\nBiogas Facilities\nOperator ID: 39773\nDear Sir/Madam:\nAnheuser-Busch, LLC (\"AB\") owns and operates a beer production facility in Cartersville,\nGeorgia, that includes infrastructure for collecting and treating production wastewater, and for\ncollecting and reusing the gases produced in the wastewater treatment process (the \"biogas\") as\nboiler fuel. In general terms, wastewater treatment produces biogas that is compressed and\ntransported through a pipeline to boilers.\nAB acknowledges that it is an Operator, as defined by PHMSA, based on the nature and\nconfiguration of the pipeline transporting biogas to the boilers and is therefore subject to\nenforcement of PHMSA regulations by the Georgia Public Service Commission (\"GPSC\"). AB\nalso acknowledges that its biogas pipeline meets the PHMSA definition of a Transmission Line.\nDuring a recent pipeline safety inspection and in the subsequent report, GPSC stated that the\ncompressors upstream of the Transmission Line are also subject to PHMSA/GPSC jurisdiction.\nAB has researched the regulations along with associated documents and publications and has\ncome to a different conclusion. AB believes its wastewater treatment facility that is the source of\nthe biogas should be classified as onshore Production, which is not subject to PHMSA\njurisdiction, and that the equipment that collects and compresses the biogas is non-jurisdictional\nGathering due to its Class Location. AB has discussed its research and resulting opinion with\nGPSC Staff and the two parties agree that there is enough uncertainty to warrant a request for\nclarification or Interpretation from PHMSA. Therefore, AB submits this request in accordance\nwith 49 CPR Part 190.11. AB appreciates the cooperation provided by GPSC Staff in addressing\nthis matter.\n\n<<<PAGE 5>>>\n\nThe attached documents provide a detailed description of AB's biogas facilities along with an\nexplanation and references supporting AB's position on the categorization of its facilities.\nAB personnel and consultants are available to discuss this matter and to provide additional\ninformation. Contact can be made at the address above or by calling Chris Ryan at (678) 266-\n8077.\nSincerely,\n~~\nSr. General Manager\nANHEUSER-BUSCH, LLC\nAttachments\ncc: Greg Wilson\nMichelle Kelly\nJay Eversman\nMichelle Thebert, Georgia Public Service Commission\nBill DeFoor, Municipal Gas Authority of Georgia\nMaurice Chaney, Municipal Gas Authority of Georgia\n\n<<<PAGE 6>>>\n\nAB Request for Interpretation\nPosition Statement\nFacility Description\nAnheuser-Busch, LLC (\"AB\") owns and operates a beer production facility in Cartersville,\nGeorgia, that includes infrastructure for collecting and treating production wastewater, and for\ncollecting and reusing the gases produced in the wastewater treatment process as boiler fuel. The\nbrewery is located on AB property on the east side of Interstate Highway 7 5. The wastewater\ntreatment facility (\"BTS\" which stands for Biological Treatment System) is located on AB\nproperty on the west side of I-75. There is a tunnel for utility facilities under I-75 between the\ntwo AB property parcels.\nLiquid waste from the brewing process flows by gravity through the utilities tunnel to a set of\ntanks called digesters where a biological process (anaerobic digestion) is used to pretreat the\nwastewater for discharge into the local municipal sanitary sewer collection system. Anaerobic\ndigestion of the wastewater produces gases (\"biogas\") consisting primarily of methane and\ncarbon dioxide. Covers on the digester tanks capture the biogas to begin the reuse process.\nPressure from the digestion process moves the biogas from the covered digesters through a\ncondensate de-foamer tank to a holding tank from which the biogas can be pulled into one of two\ncompressors. (When production ofbiogas exceeds the amount of boiler fuel needed, when\nequipment or pipeline facilities are not in-service, or in other non-standard situations, some or all\nof the biogas is routed to a set of flares for disposal.) After compression, the biogas is cooled to\nremove liquids and then filtered before entering a pipeline running through the tunnel under I-75\nto the boiler building (\"Powerhouse\") located at the brewery.\nCategorization and Regulation Considerations\nThe Georgia Public Service Commission (\"GPSC\") has determined that the biogas pipeline\ntransporting biogas from BTS to the Powerhouse is subject to pipeline safety regulations\npromulgated by the Pipeline and Hazardous Materials Safety Administration (\"PHMSA\") as 49\nCPR Parts 191 and 192 and enforced by GPSC. GPSC also determined that the compressors at\nBTS are subject to GPSC enforcement of PHMSA regulations. GPSC has not stated its position\non pipeline safety jurisdictional authority over other equipment or facilities upstream of the\nbiogas pipeline, e.g., the digesters in which the biogas is produced.\nAB has researched relevant PHMSA Regulations in 49 CFR Part 192, American Petroleum\nInstitute Recommended Practice 80 (\"RP80\") that is incorporated by reference in full as a\nrequirement under Part 192, and PHMSA Interpretations of the provisions of Part 192 in search\nof clearly stated findings or examples that would be applicable to the various components of the\nAB facilities. As a result, AB believes its facilities should be classified as follows:\n\n<<<PAGE 7>>>\n\n• Digesters and De-foaming Tank- Onshore Production, which is not subject to\nPHMSA/GPSC jurisdiction\n• Holding Tank, Compressors, and Dehydration Equipment -Gathering Line facilities that\nare not regulated (not subject to PHMSA/GPSC jurisdiction) due to being in a Class 1\nLocation\n• Pipeline from BTS to Powerhouse - Transmission Line based on Transportation of Gas\nto a Large Volume Customer that is not down-stream from a gas distribution center and\nsubject to PHMSA/GPSC jurisdiction\nEach of these components is discussed further below.\nDigesters and Related Equipment\nCategorization\nSince flammable gas is created (produced) in the digesters, AB has explored whether these\ndigesters and associated equipment should be classified as Production. Part 192 does not define\n\"Production;\" however, RP80, which is incorporated by reference (see 192.7), provides\ndefinitions and \"definitional concepts\" that are applicable to the AB facilities as shown on\nAttachment A and excerpted below:\n2.3 Definition of Production Operation\n'Production Operation' means piping and equipment used for production and preparation for\ntransportation or delivery of hydrocarbon gas ... and includes the following processes:\n(a) extraction and recovery, ... treatment, separation ... of hydrocarbon gas\n2.3.1 Basic 'Production Operations' Defmitional Concepts\nProduction operations generally take place upstream of any gathering or other pipeline\nfacilities that could be regulated as transportation under Title 49 U.S. Code Chapter 601\n(Pipeline Safety Act). The production function ... may include several processes required to\nprepare the gas for transportation. Such processes may include separation, dehydration, ...\nprocessmg ...\n2.4 Supplemental Defmitions, also includes the following production-related term:\n2.4.4 Production: A blanket term referring to all of the operations enumerated in the\nfollowing definitions.\nf. treatment: The physical and/or chemical technique used to enhance separation of\nproduced well fluids and removal of impurities ( e.g., water, solids, basic sediment\nand water, sulfur compounds, carbon dioxide, etc.). Examples include iron sponge\nunits, field amine units, and dehydrators. In some cases, treatment can be a\nfunction or integral part of separation, and vice versa.\n\n<<<PAGE 8>>>\n\nAB believes the De-foaming Tank immediately downstream from the Digesters meets the\ndefinition of \"production treatment\" because it enhances separation of fluids produced in the\nDigesters.\nAB notes that, while these definitions and RP80 as a whole are most commonly applied to\nProduction associated with traditional underground gas reserves, the same concepts have been\napplied to Production within landfill gas systems (see Interpretations PI-92-010 and PI-10-0014)\nand are seemingly appropriate for anaerobic digesters that produce biogas.\nRegulation\nSince Production is not included in the § 192.3 definition of \"Transportation of gas,\" it is AB' s\nunderstanding that Production facilities are not subject to PHMSA jurisdiction.\nCompressors and Related Equipment\nCategorization\nThe definitions of Gathering Line found in 192.3 and RP80 shown on Attachment B and\nexcerpted below are applicable to the AB facilities:\n§192.3 - Gathering Line means a pipeline that transports gas from a current production facility to\na transmission line or main.\nRP80 - \"Gathering Line\"\n(a) means any pipeline ... used to\n( 1) transport gas from the furthermost downstream point in a production\noperation to the furthermost downstream of the following endpoints,\n(D) the outlet of the furthermost downstream compressor station\nused to ... increase gathering line pressure for delivery to another\npipeline,\nAssuming the digesters and adjacent de-foaming tank discussed previously are determined to be\nProduction facilities, AB believe it follows that the holding tank, compressors, and dehydrating\nequipment immediately downstream meet the regulatory definitions of Gathering Line.\nRP80, Section 2.4 Supplemental Definitions, also includes the following gathering-related term:\n2.4.2 gathering line gas treatment facility: One or a series of gas treatment operations, other\nthan production treatment, operated for the purpose of removing impurities ( e.g., water,\nsolids, basic sediment and water, sulfur compounds, carbon dioxide, etc.).\nAB believes that dehydrating equipment associated with its compressors meets the definition of\n\"gathering line gas treatment facility.\"\nIn addition to defining Gathering Lines, RP80 also provides written and graphic means for\ndetermining whether specific facilities should be classified as Gathering and, if so, to what\nextent. Application of either of the Onshore Gas Gathering Decision Trees found in Appendix A\n\n<<<PAGE 9>>>\n\nof RP80 show that outlet of the gas compressor station is the end of AB gathering facilities. The\nroute taken through these Decision Trees is shown in Attachment C.\nRegulation\n49 CFR Part 192.8(b) provides for the identification of ''regulated onshore gathering line\" based\nprimarily on Class Location. § 192.5(a)(l) defines a \"class location unit\" as an onshore area that\nextends 220 yards on either side of the centerline of any continuous 1-mile of pipeline.\nAs shown on the attached map, titled Attachment D, other than BTS that houses the Gathering\nLine facilities, there are no other buildings intended for human occupancy within the Class\nLocation Unit area as applied in all directions from the portion of the building housing the\nGathering Line facilities. Therefore, based on the provisions of 192.5(b)(l)(ii), these Gathering\nLine facilities are in a Class 1 Location due to there being 10 or fewer buildings intended for\nhuman occupancy in the AB Class Location Unit.·\nThe table in § 192. 8(b )(2), which defines \"regulated onshore gathering lines,\" makes no reference\nto Gathering Lines in Class 1 Locations. Therefore, it is AB's understanding that its Gathering\nLine facilities are not regulated by PHMSA.\nPipeline to Boiler Plant\nAB acknowledges that it is an Operator as defined in § 192.3 because it engages in the\ntransportation of gas. AB also accepts the GPSC position that the biogas pipeline is a\nTransmission Line as defined in §192.3 because it (1) Transports gas from a gathering line ... to\na ... large volume customer that is not down-stream from a gas distribution center. AB believes\nPHMSA/GPSC jurisdiction is limited to the Transmission Line.\nConclusion\nAB believes the information provided above supports its position that its biogas facilities should\nbe categorized and regulated as follows:\n• Digesters and De-foaming Tank- Onshore Production, which is not subject to\nPHMSA/GPSC jurisdiction\n• Holding Tank, Compressors, and Dehydration Equipment - Gathering Line facilities that\nare not regulated (not subject to PHMSA/GPSC jurisdiction) due to being in a Class 1\nLocation\n• Pipeline from BTS to Powerhouse - Transmission Line based on Transportation of Gas\nto a Large Volume Customer that is not down-stream from a gas distribution center and\nsubject to PHMSA/GPSC jurisdiction\n\n<<<PAGE 10>>>\n\nAttachments\nA -RP80 Definition of Production\nB - Part 192 and RP80 Definitions of Gathering\nC - RP80 Appendix A Decision Trees\nD - Gathering Line Class Location Map\nE- Interpretations PI-92-010 and PI-10-0014\n\n<<<PAGE 11>>>","truncated":false,"body_characters":20258}