{"operation":"document","citation":"PI-22-0018","title":"XTO Energy, Inc. — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2022-11-22","effective_on":null,"summary":"PI-22-0018 response to XTO Energy, Inc. concerning 193.2001.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0018.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0018.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-22-0018","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/76966/xto-energy-pi-22-0018-11-22-2022-part193-2001.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nNovember 22, 2022\nMr. Jameson Gowin\nUnconventional SSHE DOT Advisor\nXTO Energy, Inc.\n22777 Springwoods Village Parkway\nSpring, TX 77389\nDear Mr. Gowin:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), dated\nSeptember 27, 2021, you requested an interpretation of the Federal pipeline safety regulations in\n49 Code of Federal Regulations (CFR) Part 193 with respect to your natural gas processing and\nliquefied natural gas (LNG) storage facility in Hawkins, Texas (Hawkins Gas Plant).\nYou stated that XTO Energy owns and operates the Hawkins Gas Plant, which receives feed gas\nfrom the Hawkins gas gathering system by a class 1 unregulated gathering pipeline. You stated\nthat the facility produces LNG as a byproduct and stores it onsite in two 50,000-gallon LNG\nstorage tanks. You stated that the LNG is periodically sold and transported by truck. In\naddition, you provided a block flow diagram of the facility. The diagram indicates, and you\nconfirmed in a follow-up email, that gas is sold to Kinder Morgan from the plant via a Part 192-\nregulated transmission line.\nYou believe the Hawkins Gas Plant is not regulated under Part 193 because it receives gas from\nan unregulated pipeline and the produced LNG is transported from the facility by truck. You\nasked whether the Hawkins Gas Plant is regulated under Part 193.\nUnder § 193.2007, an LNG facility is “a pipeline facility that is used for liquefying natural gas or\nsynthetic gas or transferring, storing, or vaporizing liquefied natural gas.” Additionally, a\npipeline facility “means new and existing piping, rights-of-way, and any equipment, facility, or\nbuilding used in the transportation of gas or in the treatment of gas during the course of\ntransportation.” Section 193.2001 defines the scope of regulated LNG facilities as:\n§ 193.2001 Scope of part.\n(a) This part prescribes safety standards for LNG facilities used\nin the transportation of gas by pipeline that is subject to the\npipeline safety laws (49 USC 60101 et seq.) and Part 192 of this\nchapter.\n(b) This part does not apply to:\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\n(1) LNG facilities used by ultimate consumers of LNG or\nnatural gas.\n(2) LNG facilities used in the course of natural gas treatment or\nhydrocarbon extraction which do not store LNG.\nIn addition, PHMSA has explained in guidance that LNG facilities are regulated under Part 193\nif the LNG facility either receives from or delivers to a Part 192 pipeline.\n1 The Hawkins Gas\nPlant is an LNG facility subject to regulation under Part 193 because it is a pipeline facility that\nstores LNG and because it delivers gas to a Part 192-regulated pipeline. Further, the Hawkins\nGas Plant is not exempt from Part 193 under § 193.2001(b)(1) or (b)(2) because the facility is not\nthe ultimate consumer of the LNG or natural gas and because the facility stores LNG.\nTherefore, the Hawkins Gas Plant is regulated under Part 193.\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\n1 See PHMSA, “LNG Plant Requirements: Frequently Asked Questions,” at G1,\nhttps://www.phmsa.dot.gov/pipeline/liquified-natural-gas/lng-plant-requirements-frequently-asked-questions.\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\nXTO Energy, Inc\n22777 Springwoods Village Parkway\nSpring, Texas 77389\nSeptember 27, 2021\nOffice of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\nEast Building, 2nd Floor 1200 New Jersey Ave.\nSE Washington, DC 20590-0001\nAttn: Mr. John Gale\nNote: Request for Interpretation of 49 CFR Part 193\nDear Mr. Gale,\nXTO Energy, Inc is requesting a formal written interpretation pursuant to 49 CFR Part §190.11(b).\nRegarding the applicability of the Department of Transportation regulations at 49 CFR Part §193.2001\nfor XTO Energy’s Hawkins Gas Plant, located in Hawkins, Texas. Please see written description and\nAppendix A which contains block flow diagram of process flow.\nFacility Overview\nXTO Energy owns and operates a natural gas processing facility in Hawkins, TX. The plant is located in a\nrural area where it receives feed gas from the Hawkins gas gathering system via non-jurisdictional Class\n1 pipelines, per 49 CFR Part §192.5.\nGas Processing Overview\nLow Pressure Gas, fed from non-jurisdictional Class 1 pipelines, is compressed via compression, blends\nwith High Pressure and Cap Gas, and then enters into the inlet of the amine system. The gas is stripped\nof any H2S and CO2. The gas is then sent into a mole sieve dehydration system to remove any remaining\nmoisture content. The gas enters the Nitrogen Recovery Unit (NRU) through an expander where Natural\nGas Liquids (NGL’s) are dropped out. The gas continues through brazed aluminum exchangers in the\nNRU to continue the temperature drop with help of a propane chiller to temperatures of a minus (-)\n260° F to separate the N2 from the methane stream. When the methane is separated in its liquid stage,\na side stream flow that is not needed for cooling of the NRU process, is moved to Liquid Natural Gas\n(LNG) tanks for 3rd party Truck Sales. The N2 stream is warmed to a gaseous state and compressed and\nreinjected back into the field reservoir to the Enhanced Oil Recovery (EOR) System. The liquefied\nmethane that continues through the NRU is warmed to a gaseous state and compressed to a gas Sales\nLine. The LNG volume produced to tanks is purely based on the amount of liquid methane that can be\nflowed through the side stream without effecting the cooling of the NRU and LNG customer loading and\nmarket prices (max LNG side stream flow 60K gallons per 24 hours with cool ambient temperatures)(Hot\nambient temperatures about 40K gallons per 24 hours). When both market price and scheduling of truck\ntransportation is met, the LNG is unloaded onto truck loading system from 1 of 2 50,000 gallon storage\ntanks onsite within the gas processing facility.\n\n<<<PAGE 4>>>\n\nDue to the fact that XTO Energy’s Hawkins Gas Plant receives its gas feed via an unregulated Class 1 49\nCFR Part §192.5 pipeline and the resulting LNG leaves the facility via 3rd party trucks, XTO Energy\nbelieves that the Hawkins Gas Plant would not be subject to the requirements of 49 CFR Part §193.\nIf the Pipeline and Hazardous Materials Safety Administration (PHMSA) requires any additional\ninformation or would like to discuss further, please do not hesitate to contact me at the number and\naddress below.\nWe thank PHMSA in advance for your consideration of this request.\nSincerely,\nJameson Gowin – Unconventional SSHE DOT Advisor\n22777 Springwoods Village Parkway\nSpring, Texas 77389\nCell: 817-201-9373\njameson.gowin@exxonmobil.com\nAppendix A\n\n<<<PAGE 5>>>\n\nLNG LOADING SKID/\nGASOLINE STORAGE\nSCALE\nCENTRAL\nGASOLINE STORAGE\nTRAING\nUNG VAPORS\nVAPOR RECOVERY UNT\nLOW PRESSUFE\nBACK TO THE\nLING STORAGE\nSISTEM\nLING STORAGE\nNG. STORAGE\nNEW ING FAGUTY 2016) T\nDEBUTANIZER TOWER\nEXISTING FACILITY (201 1)\nINDER MORGAN\nSALES GAST\nSALE GAS COMPRESSC\nREJECTION UNT\n\"NITROGEN\nPROCESS PLANT\nOFESPEC GASTO PM COMPRESSOR\nFROM FIELD\nFEED GAS\nTO RED\n- N2 RECYCLE N2 COMPRESSOR\nPRESSURE MANTENANCE COMPRESSOR\n—BYPASS TO PM","truncated":false,"body_characters":8415}