{"operation":"document","citation":"PI-23-0017","title":"US Bureau of Land Management — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2024-01-17","effective_on":null,"summary":"PI-23-0017 response to US Bureau of Land Management concerning 192.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-23-0017.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-23-0017.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-23-0017","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/standards-rulemaking/pipeline/interpretations/78121/blm-pi-23-0017-01-17-2024-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\nJanuary 17, 2024\nMs. Melanie Barnes\nState Director, New Mexico\nUS Bureau of Land Management\n301 Dinosaur Trail\nSanta Fe, New Mexico 87508\nDear Ms. Barnes:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated\nOctober 4, 2023 [Reference No.: 3745(0060/910)], you requested PHMSA provide a written\nresponse to the Bureau of Land Management (BLM) with respect to PHMSA’s potential\noversight of the Federal Helium System. Specifically, PHMSA evaluated whether the helium\npipeline falls within the scope of the gas pipeline safety regulations at 49 Code of Federal\nRegulations (CFR) § 192.1.\nAs stated in your letter, BLM has been working with the General Services Administration (GSA)\nto dispose of all facilities, equipment, and other real and personal property, and all interests in\nthe same, held by the United States in the Federal Helium System. During the transition from\ngovernment to private ownership there is a potential for regulating bodies to provide oversight\nwithin their jurisdiction. BLM is requesting information on the potential oversight by regulating\nbodies to provide open, transparent, and advanced knowledge of all aspects of future ownership\nto potential buyers, the Congress, and taxpayers.\nBackground\nYour letter provides the following information regarding the Federal Helium System (System).\nThe System is located near Amarillo, Texas and includes a helium storage reservoir, enrichment\nplant, helium pipeline (also referred to as the Federal Helium Pipeline), and other infrastructure\nowned, leased, and managed under contract by the Secretary of the Interior for the storage,\ntransportation, withdrawal, enrichment, purification, or management of helium.\nThe System supplies crude helium to private helium refining companies, which in turn refine the\nhelium and market it to consumers. It also stores privately owned crude helium gas within the\nhelium reservoir that must be delivered to its owners under contractual agreements. The helium\npipeline has been in service since the early 1960s and transports a mixture of 75 percent helium\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\nand 25 percent nitrogen gas from the helium enrichment plant to a private processing facility in\nBushton, Kansas, along with other customers on its route. The helium pipeline operates between\n600 and 1500 pound per square inch (psi) and has a maximum allowable operating pressure of\n1800 psi.\nYou described the helium pipe material as coal tar-asbestos coated, carbon steel mains. You\nstated that the pipeline is approximately 425 miles in total length with the following segments:\n• 187.5 miles of 8-inch diameter pipe;\n• 227 miles of 4-inch diameter pipe; and\n• 12 miles of 3-inch diameter pipe.\nYou mentioned that the helium pipeline was designed and constructed in accordance with the\nASME/ANSI B31.8 standard. While presently used to transport helium, you noted it could be\nsuitable for conversion to a “gas transmission” pipeline system without significant modification.\nYou also provided certain design, welding, and valve specifications for the helium pipeline\nsystem.\nYou asked PHMSA the following questions, and PHMSA’s response follows each question.\nQuestion 1: Given all information provided here and in the reading room, does PHMSA\nhave any regulatory oversight to any portion of the Federal Helium System? If so, can\nyou please provide in detail to what extent and for which corresponding portion of the\nFederal Helium System?\nResponse to 1: The Federal pipeline safety regulations are applicable to the\ntransportation of gas by pipeline facility operators. The gas pipeline safety regulations in\n49 CFR Parts 191 and 192 define gas to mean “natural gas, flammable gas, or gas which\nis toxic or corrosive.” Helium is an inert, non-flammable, non-toxic, non-corrosive noble\ngas. Nitrogen is an inert, non-flammable, non-toxic, non-corrosive gas. Therefore, based\non the regulatory definition of “gas,” PHMSA would not apply or enforce the pipeline\nsafety regulations against an operator of the helium pipeline you described with the\ncomposition of 75 percent helium and 25 percent nitrogen gas\nYou mentioned in your letter that the helium pipeline was designed and constructed to\nspecifications such that it would be suitable for conversion and use as a “gas\ntransmission” pipeline. If the pipeline is intentionally converted for use in the\ntransportation of a regulated “gas,” or the gas stream composition changes such that it\nmeets the definition of a regulated “gas,” including but not limited to methane or natural\ngas, the pipeline would likely fall under the Federal pipeline safety regulations in 49 CFR\nPart 192, including requirements for conversion to service at 49 CFR § 192.14. A\nconversion to service would only be required if the pipeline transports a regulated\nproduct.\nQuestion 2: Should the Federal Helium System ownership be transferred/sold to a\nprivate entity will PHMSA still provide regulatory oversight to the Federal Helium\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\nPage 3 of 3\nSystem? If so, can you please provide in detail to what extent for which corresponding\nportion of the Federal Helium system?\nResponse to 2: For the reasons articulated above in the Response to Question 1, PHMSA\nwould not apply or enforce the pipeline safety regulations against the Federal Helium\nPipeline because it is not engaged in the transportation of a regulated “gas.”\nQuestion 3: Should PHMSA become/maintain regulating authority over any portion of\nthe Federal Helium System how long will the new purchaser/owner be initially given to\nsafely bring the current Federal Helium System to the regulating standard?\nResponse to 3: For the reasons articulated above in the Response to Question 1, PHMSA\nwould not apply or enforce the pipeline safety regulations against the Federal Helium\nPipeline because it is not engaged in the transportation of a regulated “gas.”\nPHMSA would encourage the new purchaser/owner to communicate early-on with\nPHMSA regarding any future plans to convert the helium pipeline to a regulated gas\ntransmission pipeline in compliance with the Federal pipeline safety 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 (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\nUnited States Department of the Interior\nBUREAU OF LAND MANAGEMENT\nNew Mexico State Office\n301 Dinosaur Trail\nSanta Fe, New Mexico 87508\nhttps://www.blm.gov/new-mexico\nOctober 4, 2023\nIn Reply Refer To:\n3745(0060/910)\nYour Reference:\nFederal Helium System Oversight\nBenjamin Fred\nAssistant Chief Counsel, Pipeline Safety (PHC-20)\nUSDOT, Pipeline and Hazardous Materials Safety Administration\n1200 New Jersey Ave SE,\nWashington, D.C. 20590\nBejamin.Fred@DOT.gov\nDear Counsel Fred:\nThis letter is to notify your office that the Bureau of Land Management (BLM) is requesting a\nwritten response regarding the Pipeline and Hazardous Materials Safety Administration’s\noversight to the Federal Helium System.\nThe BLM has been working with the General Services Administration (GSA) to execute Phase D\nof the Helium Stewardship Act of 2013. This Phase requires that the Secretary of Interior\ndispose of all facilities, equipment, and other real and personal property, and all interests in the\nsame, held by the United States in the Federal Helium System. As a result, BLM and GSA are\nworking to sell the Federal Helium System.\nThe government recognizes that during this transition of ownership from government to private\nentity there is a potential for regulating bodies to step in and provide oversight, that may or may\nnot be already in place within their jurisdiction. It is the intention of the BLM to provide open,\ntransparent, and advanced knowledge of all aspects of future ownership to potential buyers, the\nLegislative Branch, and taxpayers. The BLM is requesting your agency thoroughly review the\nfollowing information and questions, then provide a response for each question below.\nBACKGROUND-\nThe BLM operates and maintains a helium storage reservoir, enrichment plant, and helium\npipeline system near Amarillo, TX, that supplies over 20% of the domestic and 9% of the global\ndemand for helium, an inert non-combustible gas. The BLM supplies crude helium to private\nhelium refining companies which in turn refine the helium and market it to consumers. The BLM\nalso stores privately owned crude helium gas within the reservoir that must be delivered to its\nINTERIOR REGION 5 · MISSOURI BASIN\nINTERIOR REGION 6 · ARKANSAS-\nINTERIOR REGION 7 · UPPER\nKansas, Most of Montana, North Dakota,\nNebraska, South Dakota\nRIO GRANDE-TEXAS GULF\nCOLORADO BASIN\nOklahoma, Texas\nColorado, New Mexico, Utah, Wyoming\n\n<<<PAGE 5>>>\n\n2\nowners under contractual agreements between the Federal Government and the owners of the\nhelium. It is the responsibility of the Federal Government to deliver this crude helium in\naccordance with these storage contracts. The storage contracts will be assigned to the purchaser\nof the helium system. This new property owner will be responsible for carrying out the\nremaining contractual delivery obligations set forth by said contracts, until the contract\nexpiration date of 30 SEP 2027.\nThe Federal Helium System is comprised of the following:\n1. Federal Helium Reserve,\n2. Cliffside Field,\n3. Federal Helium Pipeline, and\n4. All other infrastructure owned, leased, or managed under contract by the Secretary of the\nInterior for the storage, transportation, withdrawal, enrichment, purification, or\nmanagement of helium.\nThe BLM Amarillo Field Office (AMFO) crude helium pipeline system has been in service since\nthe early 1960’s and transports a mixture of 75% helium and 25% nitrogen gas from the\nAmarillo Crude Helium Enrichment Unit to the OneOK LP Processing Facility in Bushton, KS,\nalong with other customers on its route. The pipeline operates between 600 and 1,500-psi, has\nan 1,800-psi maximum allowable operating pressure, and consists of 187.5 miles of 8-inch pipe;\n227-miles of 4-inch pipe; and 12-miles of 3-inch pipe. All pipe is coal tar-asbestos coated,\ncarbon steel mains, approximately 425-miles in total length.\nThe Crude Helium Pipeline was designed and constructed in accordance with the ASME/ANSI\nB31.8 standard and is suitable for conversion to a gas transmission pipeline system without\nsignificant modification. The Crude Helium Pipeline System Operations & Maintenance Manual\nexplains the pipeline system was designed to an exceptionally high standard at the time of\nconstruction. The designers acknowledged that the requirements of the American Standards\nAssociation for Pressure Piping, Gas Transmission and Distribution Piping Systems (ASA\nB31.8-1958, now ASME B31.8) did not apply since helium is an inert gas, but not only was this\nstandard rigorously incorporated, all pipeline welding was completed to API 1104 7th edition\n(1961) specification, and 100% of the welds were radiographically inspected (x-ray NDT).\nLikewise, the valve specification calls for ASA/API 6D valves with emphasis on positive sealing\nunder dry-helium pressure. The designers recognized the immense value of crude helium and\nspecified the inclusion of mainline block valves “commensurate with the value of crude helium\ncontained per interval.” (O&M p. I-B-7) The valves installed along the pipeline are Grove\nthrough-conduit, ASA Series 900, gate valves equipped with Shafer hydraulic-pneumatic\nactuators with automatic line break controls such that they automatically close in case of a\npipeline failure. The approximate spacing of these mainline block valves is 10-miles. (O&M p.\nII-A-4) The actuators are designed and set to close at 1-inch per second where, on 8-in mainline,\nthe valve will close in 8 seconds and, on 3-in mainline, it will close in 3-seconds. (O&M p. III-B-\nI).\n\n<<<PAGE 6>>>\n\n3\nQUESTIONS-\n1. Given all information provided here and in the reading room, does The Pipeline and\nHazardous Materials Safety Administration have any regulatory oversight to any portion\nfor which corresponding portion of the Federal Helium System?\nof the Federal Helium System? If so, can you please provide in detail to what extent and\n2. Should the Federal Helium System ownership be transferred/sold to a private entity will\nThe Pipeline and Hazardous Materials Safety Administration still provide regulatory\noversight to the Federal Helium System? If so, can you please provide in detail to what\nextent for which corresponding portion of the Federal Helium System?\n3. Should The Pipeline and Hazardous Materials Safety Administration become/maintain\nregulating authority over any portion of the Federal Helium System how long will the\nto the regulating standard?\nnew purchaser/owner be initially given to safely bring the current Federal Helium System\n2222 or mgbares@ blm gov. Thank you in advance for your timely response and for your\nIf you have further questions regarding the project, please feel free to contact me at (505) 954-\nassistance in the matter. I look forward to hearing from you.\nSincerely,\nMELANIE BARNES\nluti G. Bay 2023.10.0414:55:11\n-06'00\"\nState Director\nMelanie G. Barnes","truncated":false,"body_characters":14903}