Riverfront Exploration, LLC — Pipeline Safety Interpretation

Page 1U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, DC 20590 April 10, 2023 Ms. Jennifer Sebo Production Tech Riverfront Exploration, LLC 109 North 6th Street Fort Smith, AR 72901 Dear Ms. Sebo: In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), dated November 7, 2022, you requested an interpretation of the Federal pipeline safety regulations in 49 Code of Federal Regulations (CFR) Part 192.8 for the Riverfront Exploration, LLC (Riverfront) Washburn Creek 6-inch diameter and Fort Chaffee 2-inch diameter natural gas pipelines (Riverfront pipelines) in the state of Arkansas. You stated the Fort Chaffee 2-inch diameter pipeline has a maximum allowable operating pressure (MAOP) of 1,200 pounds per square inch gauge (psig) and operates at 17.57 percent specified minimum yield strength (SMYS). You stated the pipeline is in a Class 1 location and is not in a high consequence area (HCA). You stated the pipeline is 216 feet long from the compressor station to its connection to Blackbear transmission line. You stated the Washburn Creek 6-inch diameter pipeline has an MAOP of 1,000 psig and operates above 20 percent SMYS. You stated the pipeline is in Class 1 location and is not in a HCA. You stated the pipeline is 0.877 miles long from the compressor station to its connection to the Enable Transmission Line. Based on the information you provided, both Riverfront pipelines upstream of the compressor stations are connected to wells as gathering lines. You stated that both Riverfront pipelines are currently regulated as transmission pipelines. However, you ask PHMSA whether the pipelines qualify as Type R gathering pipelines. In an e-mail dated February 6, 2023, PHMSA asked Riverfront Exploration, “[s]ince the transmission line definition did not change what makes the pipeline gathering of any type? What made the pipeline to be designated as transmission in the first place?” On the same day you responded to PHMSA stating that both the Fort Chaffee and the Washburn pipelines were designated as transmission lines by previous operators before Riverfront acquired them and, therefore, you could not speak on their behalf of why they determined these pipelines as transmission pipelines. The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations (49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts presented by the person requesting the clarification. Interpretations are not generally applicable, do not create legally-enforceable rights or obligations, and are provided to help the specific requestor understand how to comply with the regulations.#

Page 2of 2 Table 1 to Paragraph(c)(2) of § 192.8 in the November 15, 2021[86 FR 63296], Safety of Gas Gathering Pipelines final rule describes Type R pipelines as onshore pipelines in Class 1 and Class 2 locations that do not meet the Type A, Type B or Type C criteria. Per § 192.8(a)(5), new, replaced, relocated or otherwise changed gas gathering pipelines installed after May 16, 2022, the endpoint of gathering under sections 2.2(a)(1)(E) and 2.2.1.2.6 of API RP 80 (incorporated by reference, see § 192.7)—also known as ‘‘incidental gathering’’—may not be used if the pipeline terminates 10 or more miles downstream from the furthermost downstream endpoint as defined in paragraphs 2.2(a)(1)(A) through (a)(1)(D) of API RP 80. Pursuant to § 192.8(c)(3), a Type R gathering line is subject to reporting requirements under 49 CFR Part 191 and is not considered a regulated onshore gathering line under 49 CFR Part 192. Based on the information you provided, the Riverfront pipelines are less than 8.625-inches in diameter, operate in Class 1 locations, and are less than 10 miles long from the furthermost downstream endpoint to the gas transmission pipelines. Therefore, PHMSA agrees with your assessment that the two Riverfront pipelines meet the definition of a Type R gathering pipeline and are subject to the 49 CFR Part 191 reporting requirements. If we can be of further assistance, please contact Tewabe Asebe at 202-366-5523. Sincerely, John A. Gale Director, Office of Standards and Rulemaking Attachments The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations (49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts presented by the person requesting the clarification. Interpretations are not generally applicable, do not create legally-enforceable rights or obligations, and are provided to help the specific requestor understand how to comply with the regulations.#

Page 3RIVERFRONT EXPLORATION November 7th , 2022 Pipeline and Hazardous Materials Safety Administration Office of Standards and Rulemaking U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 United States Re: Riverfront Exploration, LLC. Request for Written Regulatory Interpretation Riverfront Exploration, LLC is requesting a written regulatory interpretation on two of its natural gas pipelines in Arkansas being the Washburn Creek 6.625 inch line and the Fort Chaffee 2.375 inch line relative to the following reporting and Regulations: 1.) 49 CFR Part 192 Gas Gathering Line Definition for Onshore Gas Gathering lines and Pipeline Safety: 2.) Safety of Gas Gathering Pipeline; Extension of Reporting requirement 3.) Regulation of Large, High-Pressure Lines, and Other Related Amendments 4.) New Safety Standards, Final Rule, 5.) Federal Register, Vol 86, No. 217 November 15,2021, 6.) The Latest definitions in API RP 80 March 2020. Based on the above referenced regulations and according to the definition of API RP 80 The Washburn Creek 6.625 inch line and the Fort Chafee 2.375 inch line both said lines would be considered incidental Gathering Type R reporting lines on May 16th 2022. "As Illustrated in Figure 8 of section 4.3.2.5 of API RP 80 In the case of gas processing or gas treatment, the connection to a transmission line may have to move the gas through a pipeline an additional distance from the outlet of the plant to a transmission pipeline. The pipeline moving the gas from the plant to another pipeline is termed incidental gathering. The incidental gathering begins at the plant outlet and ends at the other pipeline connections. Incidental gathering may also occur when a compressor is a potential end point or when the point of last commingling is the last identified end point. From a functional standpoint, the section of incidental gathering line is no different from the rest of the gathering system. The definition recognizes that gathering may continue downstream from the last end point identified by processing, treatment, commingling, or compression activities to the connection with another pipeline."#

Page 4Riverfronts Fort Chaffee and Washburn Creek's endpoint is at a compressor station then they both directly connect to a transmission line; the Washburn Creek is under one mile of line and the Fort Chaffee is only 216 feet long. F urthermost Oownstream Point In Produdlon Op«!nation Transmls$lon crDfslrblUon .,.__p lne F urthen"IKl$l DC1'11Yn$1r'hm Gas Prodl.tdion / ProcNslng Plant, Gm Trealmtnt O peration ~--- Fadllly, Gu Oornpnmlan. or ...,.....,._...,;;;i,. Point of Last Commlngllng Galhedng Funclien Fi ure 8-lnctdental Gathering Downstream of an Identified End point Fort Chaffee's 2-inch line leaves the compressor site and has a .041 miles (216 Feet long) pipeline that has a MAOP of 1200 which then connects to Merits Meter then to Blackbear's Transmission line. This line operates at 17.57% of SMYS. Class 1 with no HCA areas. Washburn Creek's 6-inch line leaves the compressor site and .877 miles (under 1 mile) away it connects to Enable's Transmission line. The pipeline does operate over 20% of SMYS at 33.88% and has a MAOP of 1000. This line operates at daily pressure of 750 or less. It is a Class 1 line with no HCA' s. Both of these lines based on current and previous PHMSA interpretations (Pl-09-008 July 30,2009 and PO-09-002 July 14,2009) incidental gathering designations were permissible due to what was considered a drafting error. PHSMA Final Rule Vol 86 No 217 provides the following new rule definition/ guidelines. 192.8 How are onshore gathering pipelines and regulated onshore gathering pipeline determined? (a) * * * (5) For new, replaced, relocated, or otherwise changed gas gathering pipelines installed after May 16, 2022, the endpoint of gathering under sections 2.2(a)(1)(E) and 2.2.1.2.6 of API RP 80 (incorporated by reference, see§ 192.7)-also known as "incidental gathering"-may not be used if the pipeline terminates 10 or more miles downstream from the furthermost downstream endpoint as defined in paragraphs 2.2(a)(l)(A) through (a)(l)(D) of API RP 80 (incorporated by reference, see§ 192.7) and this section. If an "incidental gathering" pipeline is 10 miles or more in length, the entire portion of the pipeline that is designated as an incidental gathering line under 2.2(a)(1)(E) and 2.2.1.2.6 of API RP 80 shall be classified as a transmission pipeline subject to all applicable regulations in this chapter for transmission pipelines. (b) Each operator must determine and maintain for the life of the pipeline records documenting the methodology by which it calculated the beginning and end points of each onshore gathering pipeline it operates, as described in the second column of table 1 to paragraph#

Page 5(c)(2) of this section, by: (1) November 16, 2022, or before the pipeline is placed into operation, whichever is later; TABLE 1 TO PARAGRAPH (c)(2) Type Faatunl Area Additional safety buffer -Metallic llnd lhe MAOP produces a hoop strel$ of 20 pen:ent o, more of SMYS. -II stmss level Is unlcnown, an op- erator rm,st detannlne the ltnlSI level accacdlng to the applcable provisions ln aubpa,t C of lhls part. --Non-metatllc and .lhe MAOP Is more than 125 psfg (862 kPa). Ute and Iha MAOP p,oduces a noap llfeSs of less than 20 percent of SMYS. If 1h11 slleU level la unknown, an opera1« must datannlna Iha 8ll8SS level according to lhe applicable pro- Ylslons In subpart C ol his pall --Non-mellllllo and Iha MA.OP Is 125 pslg (882 kPa) or less. Cius 2, 8, or 4 locaJlon (SH§ 192.5) ... None. Ama 1. Class 3, or 4 loeallon ................ . Ama 2. An 8Rl8 wlllln a Class 2 loca• lion th• q:,endOr delennlnes by using any of the folowlng 11,ree methods: (a) A CU 2 focatlon; (b) An area extandlng 150 feet (45.7 m) en each sk1G ot Iha cantarlne of any aintlnuous 1 mile (1.6 km) of plpeb 8'ld lnduding mOl'l!I than 10 but fewer hln 48 dwolllngg; or (c) All area extending 150 feet (45.7 m} en each side of the canterlne of any a>ntlnuous 1000 feet (305 m) of pipe- Ina and Including 5 or m019 dwallngs. aua 1 tocadon ......................... ·-·······-· 11 tho !Jalherlng plpelne Is In Area 2(b) or 2(c), Iha eddltlonal leAg1hs ol line extend upsw.al'l'I and downstrNm fn>m 1he ama to a point where 1h11 line Is at least 150 feet (45.7 m) fram lhe nearest dwelllng In the area. However, If a clultar of dwltltngs rn Area 2(b} or 2(c) qua!IIIIIS a plpeh as Type B, the Type B du$lllcallOn endi; 1eG feel (45.7 m) from the """" est dnlng n Iha Cluster. Oulsld• diameter groatar than or ~ to 8.825 lnohn and any of the tel• lowing: -Molalllc end Iha MAOP producas a hocp &tress of 20 perroant or more of SMYS; -11 Ille 11r8Ss IIM,I Is unknown. sag• mant la m8'allc and the MAOP Is moni than 125 pslg (862 kPa); or -Non-matallc and th& MAOP la fflMI than 125 pslg {862 lkPa). -All o1her onllhllRI gathering Ines •••.•••• Ncne. Class 1 and crass 2 1oea11ons ................ None. Riverfront is requesting its previously classified transmission lines receive a new interpretation following the guidelines for determination both Class 1 lines that are under 8.625 in diameter and under 10 miles resulting in Reclassing as Type R. Incidental Gathering. Please give me a call with any questions you may have regarding this request. Thank you, Production Tech RIVERFRONT EXPLORATION, LLC 109 North 6th * Fort Smith, Arkansas 72901 Phone 479-242-8426 * Fax 479-783-1158#