{"operation":"document","citation":"PI-24-0002","title":"Missouri Public Service Commission — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2024-06-10","effective_on":null,"summary":"PI-24-0002 response to Missouri Public Service Commission concerning 191.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-24-0002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-24-0002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-24-0002","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/2024-06/Missouri-PI-24-0002-06-10-2024-Part191.3.pdf","body":"<<<PAGE 1>>>\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration June 10, 2024\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nMs. Kathleen McNelis\nPipeline Safety Program Manager\nMissouri Public Service Commission\nP.O Box 360\nJefferson City, MO 65102\nDear Ms. McNelis:\nIn a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA), dated\nJanuary 19, 2024, you requested an interpretation of the Federal pipeline safety regulations in\n49 Code of Federal Regulations (CFR) Parts 191 and 192. Specifically, you requested an\ninterpretation with respect to the definition of a master meter system under § 191.3.\nYou stated that the City of Kansas City (the City) constructed an airport terminal that opened on\nFebruary 28, 2023. During the construction process, the operator of the local gas distribution\ncompany (LDC), Spire Missouri, provided natural gas service to the airport through a single\nlarge meter. The City constructed natural gas distribution piping within the airport terminal to\nserve concessionaries within the new airport terminal.\nYou stated that the natural gas distribution piping installed by the City consists of both above-\nground and buried piping. The buried pipe is a 6-inch diameter high density polyethylene\n(HDPE) pipeline, “connecting from the outlet of the LDC’s meter to the transition to steel prior\nto entering the new airport terminal.” Within the terminal, the piping consists of welded,\nthreaded, and mechanically joined steel pipe, ranging from 6-inch to 1-inch diameter at the\nvarious concession areas. The City furnishes utilities, including natural gas, to food and\nbeverage providers (sublessees) renting space within the terminal. Sublessees utilize natural gas\nfor cooking food, which is sold within the airport terminal. Your letter does not specify whether\nthe concessionaries currently purchase metered gas or purchase gas by rents or other means.\nApplicable definitions under 49 CFR § 191.3 are reprinted below:\nMaster Meter System means a pipeline system for distributing as within, but not limited\nto, a definable area, such as a mobile home park, housing project, or apartment complex,\nwhere the operator purchases metered gas from an outside source for resale through a gas\ndistribution pipeline system. The gas distribution pipeline system supplies the ultimate\nconsumer who either purchases the gas directly through a meter or by other means, such\nas by rents;\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\nOperator means a person who engages in the transportation of gas.\nYou asked PHMSA the following questions in your letter, and PHMSA’s response follows each\nquestion.\nQuestion 1: Does this system meet the definition of master meter system in 49 CFR\n§ 191.3?\nResponse to Question 1: Yes, the pipeline system at the Kansas City Airport as\ndescribed in your letter constitutes a master meter system in which the City of Kansas City is the\noperator. The pipeline system is used for distributing gas, where the operator (the City)\npurchases metered gas from an outside source (the LDC) and distributes the gas within a\ndefinable area (the airport) for resale through a gas distribution pipeline system. Using the gas\ndistribution pipeline system within the airport, your letter indicates the City supplies gas to the\nultimate consumer (the concessionaries). Your letter was not clear whether the concessionaries\npurchase the gas directly through a meter or by other means, such as by rents.\nQuestion 2: Would the applicability of the definition be different under the following\nsituations?\nQuestion 2a: If the cost of gas is individually metered to the sublessees?\nResponse to Question 2a: No, the applicability of the definition would not be different\n(i.e., the system remains a master meter system) if the cost of gas is individually metered to the\nsublessees. In this scenario, the City’s gas distribution pipeline system is supplying the ultimate\nconsumer who purchases the gas directly through a meter.\nQuestion 2b: If the cost of gas is prorated based on some factor (e.g., square footage) as\nopposed to metering?\nResponse to Question 2b: No, the applicability of the definition would not be different\n(i.e., the system remains a master meter system) if the cost of gas is prorated based on some\nfactor (e.g., square footage) as opposed to metering. In this scenario, the City’s gas distribution\npipeline system is supplying the ultimate consumer who purchases the gas by other means, such\nas rents.\nQuestion 2c: If the cost of gas was not directly passed on to sublessees through metering\nor prorating, but indirectly through rent of space?\nResponse to Question 2c: No, the applicability of the definition would not be different\n(i.e., the system remains a master meter system) if the cost of gas was not directly passed on to\nsublessees through metering or prorating, but indirectly through rent of space. In this scenario,\nthe City’s gas distribution pipeline system is supplying the ultimate consumer who purchases the\ngas by other means, such as rents.\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\nQuestion 2d: If the City outsources management of the sublessees to another company,\nand that company recovers the cost of gas from the individual sublessees?\nResponse to Question 2d: No, the applicability of the definition would not be different\n(i.e., the system remains a master meter system) if the City outsources management of sublessees\nto another company, and that company recovers, on behalf of the City, the cost of gas from the\nindividual sublessees. In this scenario, PHMSA presumes that the City remains the operator of\nthe gas distribution pipeline system. If the City outsources the operation and management of the\npipeline system within the airport to another entity, then that entity could become the operator of\nthe master meter system.\nIf we can be of further assistance, please contact Alyssa Imam at 202-738-3850.\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\nMAIDA J. COLEMAN\nCommissioner\nKAYLA HAHN\nCommissioner\nMissouri Public Service Commission\nSCOTT T. RUPP\nChairman\nPOST OFFICE BOX 360\nJEFFERSON CITY, MISSOURI 65102\n573-751-3234\n573-751-1847 (Fax Number)\nhttp://psc.mo.gov\nJASON R. HOLSMAN\nCommissioner\nGLEN KOLKMEYER\nCommissioner\nJanuary 19, 2024\nMr. John A. Gale\nDirector, Office of Standards and Rulemaking\nU.S. Department of Transportation\nPipeline and Hazardous Materials Safety Administration\n1200 New Jersey Avenue SE\nWashington, DC 20590\nJohn.Gale@dot.gov\nSubject: Request for Written Regulatory Interpretation; Applicability of definition of\nMaster Meter System in 49 CFR 191.3 to the City of Kansas City Airport\nDear Mr. Gale:\nThe Staff of the Missouri Public Service Commission (“Staff”) is requesting an\ninterpretation as to whether the Kansas City Airport (“KCI”) natural gas distribution system\nwould be classified as a master meter system and subject to the requirements for master meter\nsystems in 49 CFR Part 192. The following outlines the system in question:\n1. KCI is an international airport operating in the City of Kansas City (“City”), in Platte\nCounty, Missouri.\n2. The City constructed a new airport terminal, which opened on February 28, 2023.\n3. During the construction process, Spire Missouri, operator of the local gas distribution\nsystem, provided natural gas service though a single large meter.\n4. The City constructed natural gas distribution piping within the airport terminal to\nserve concessionaries within the new airport terminal.\n5. The natural gas distribution piping installed by the City of Kansas City consists of\nboth buried and above ground piping.\nInformed Consumers, Quality Utility Services, and a Dedicated Organization for Missourians in the 21st Century\n\n<<<PAGE 5>>>\n\n6. The buried piping is 6-inch diameter High Density Polyethylene (PE), connecting\nfrom the outlet of Spire Missouri’s meter to the transition to steel prior to entering the\nnew airport terminal.\n7. Within the terminal the piping system consists of welded, threaded and mechanically\njoined steel pipe, ranging from 6-inch to 1-inch diameter at the various concession\nareas.\n8. The City furnishes utilities, including natural gas, to food and beverage providers\n(Sublessees) renting space with the terminal.\n9. Sublessees utilize natural gas for cooking food which is sold within the airport\nterminal.\nFor this system, Staff has the following questions:\n1. Does this system meet the definition of Master Meter System in 49 CFR 191.3?\n2. Would the applicability of the definition of Master Meter System be different under\nthe following situations?\na. If the cost of gas is individually metered to the Sublessees?\nb. If the cost of gas is prorated based on some factor (e.g. square footage) as\nopposed to metering?\nc. If the cost of gas was not directly passed on to sublessees through metering or\nprorating but indirectly through rent of space?\nd. If the City outsources management of the sublessees to another company, and that\ncompany recovers the cost of gas from the individual sublessees?\nIf you have questions, please feel free to contact me at 573-751-3456 or\nKathleen.mcnelis@psc.mo.gov. Thank-you in advance for your assistance.\nRespectfully,\nKathleen McNelis\nPipeline Safety Program Manager\nCopy: Commission Case No. GE-2023-0393\n2","truncated":false,"body_characters":10949}