{"operation":"document","citation":"PI-75-0102","title":"Mr. E. Neil Wagstaff — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"1975-03-06","effective_on":null,"summary":"PI-75-0102 concerning 192.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-0102.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-0102.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-0102","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/1975/g75-03-06_WAGSTAFF_192.1-nlmx.pdf","body":"<<<PAGE 1>>>\n\nPI-75-0102\nMarch 6, 1975\nMr. E. Neil Wagstaff\nP.O. Box 233\nProvo, UT 84601\nDear Mr. Wagstaff:\nThis responds to your letter of February 5, 1975, in which you ask us to verify your contention\nthat pipelines in your mobile home park at 801 South State Street, Provo, Utah, are not a gas\ndistribution system subject to 49 CFR Part 192.\nBased on the information contained in your letter, which indicates that gas is delivered to each\ntenant's mobile home where it is burned in gas utilization equipment, we cannot agree that your\noperation is not under the jurisdiction of Part 192. You concede that Part 192 applies to the\ntransportation of gas by pipeline until the gas is sold and delivered to a consumer. At the same\ntime, you argue that insofar as gas is burned in your equipment to furnish each tenant heat and\nhot water, you, rather than each tenant, are the ultimate consumer of the gas; and, therefore, your\ndistribution pipelines are not subject to Part 192.\nWhile your argument is valid in some cases, it does not appear appropriate to the situation at your\nmobile home park. It appears that you are selling gas to tenants for part of the rent money and\ndelivering it to piping and gas utilization equipment in the possession of each tenant under a\nlease from you. Ownership of the gas, with the right to use it, is transferred to each tenant when\nthe gas enters piping and equipment in the tenant's possession. At that point the transportation of\ngas subject to Part 192 ends. While the gas is in your possession, it must be transported\naccording to the safety requirements of Part 192. The fact that you are the ultimate owner of the\ntenant's piping and gas utilization equipment does not nullify each tenant's right under a lease\nfrom you to possess and consume the gas.\nSince the conclusion herein is not based on the use of gas cooking ranges, their removal from\ntenants' mobile homes would not alter the applicability of Part 192 to your operation.\nSincerely,\nJoseph C. Caldwell\nDirector\nOffice of Pipeline Safety\n\n<<<PAGE 2>>>\n\nFebruary 5, 1975\nMr. Joseph C. Caldwell, Director\nOffice of Pipeline Safety\nDept. of Transportation\n??0 Independence Ave., S.W.\nWashington D.C. 20590\nDear Mr. Caldwell:\nI requested Mr. Wayne L. Carlson of the Utah Public Service Commission for a ruling on\nthe application of Sec 192 to my Mobile Home Park. The reply I received failed to address my\nrequest and so I am requesting a direct determination based on the following:-\nFACTS\n1. I own and rent all the Mobile Homes in the park located at 801 So. State Provo\nUtah which is a master-meter system. (there are no privately owned mobile\nhomes which would be ultimate consumers and make me a pipeline op.)\n2. The natural gas is purchased by me through a master meter and I then distribute it\nto each of my units where I use it.\n3. I own and maintain in safe operating order, the appliances in which the gas I\npurchase is burnt, and all lines form the master meter to the appliances.\n4. When I rent I agree to furnish Heat, Hot Water and a means of cooking.\nTo achieve #4 above I supply the tenants with hot air to heat the unit by burning gas, I\nhave purchased, in my furnace (#3) where I am the ultimate consumer of the gas - my tenant uses\nthe hot air I supply to heat the unit. The same applies to Hot Water. Gas ranges may be a\ndebatable point but, if necessary, I will remove the few ranges I have, if they make Sec 192\napplicable to me.\nCONCLUSION\nDISCUSSION\nThe extract I have from the Federal Register Vol 38 #68 Tues. April 10'73 discusses the\ndefinition of a Service Line and the discussion states \"Transportation of natural gas ends with the\nsale coupled with delivery of the gas to the ultimate consumer so that, after the sale, the gas\nbecomes a consumer item and is no longer in commerce.\"\nSince I use the gas to heat air and water which I deliver to my tenants I must be the ultimate\nconsumer of the gas and from the above quote I cannot be in the transportation of Nat. gas. A\nletter to Mr. Carlson to this effect is necessary as a hearing is being scheduled on this matter.\nYour letter of determination should specify if cooking ranges have to be removed to obtain\nclassification as an ultimate consumer.\nSincerely,\nE. Neil Wagstaff","truncated":false,"body_characters":4256}