{"operation":"document","citation":"PI-75-0112","title":"Cox, Castle, Nicholson & Weekes — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"1975-11-03","effective_on":null,"summary":"PI-75-0112 response to Cox, Castle, Nicholson & Weekes concerning 192.3.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-0112.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-0112.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-75-0112","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/1975/g75_11_03_Robbins_192.3_Master%20Meter_lmxs.pdf","body":"<<<PAGE 1>>>\n\nPI-75-0112\nNovember 3, 1975\nMr. Lance Jay Robbins\nCox, Castle, Nicholson & Weekes\n1800 Century Park East\nSuite 200\nLos Angeles, California 90067\nDear Mr. Robbins:\nThis responds to your letter of October 23, 1975, concerning gas distribution systems in mobile home parks.\nEnclosed is a copy of the letter dated December 17, 1970, which you requested. Also enclosed is a copy of a more\nrecent interpretation by the Office of Pipeline Safety Operations concerning distribution of gas to mobile home parks.\nThank you for your interest in pipeline safety.\nSincerely,\nSIGNED\nCesar DeLeon\nActing Director\nOffice of Pipeline\nSafety Operations\n\n<<<PAGE 2>>>\n\nDecember 17, 1970\nMr. Ray M. Kightlinger\nChief, Gas Department\nThe Public Service Commission\nP.O. Drawer 11649\nColumbia, South Carolina 29211\nDear Mr. Kightlinger:\nThis is in reply to your letter of November 20, 1970, concerning the applicability of 49 CFR, Parts 191 and 192, in two\nsituations:\n1. To a housing authority distribution system with a master meter and without individual customer meters.\n2. To the pipe on a farm tap from a meter located at a transmission line to a regulator at the customer’s building\nwhich reduces the pressure to that required for the utilization equipment.\nIn answer to your first question, this office considers the mains and service lines downstream from the master meter to\nbe a distribution system that is subject to the Natural Gas Pipeline Safety Act. The master meter is analogous to a meter\nat the city gate, where there are no separate meters for individual users in the distribution system downstream from the\nmeter at the city gate, and a flat rate is charged. The municipality, in the case of the low-cost housing complex, or the\nlandlord, in the case of the mobile home park, is an operator under our regulations. Section 192.3 of the new Federal\nminimum safety standards defines “Operator” as a person (including a municipality) who engages in the transportation\nof gas.\nIn answer to your second question, because the definition of the term “service line”, 49 CFR, Part 192 extends only to\nthe customer meter set assembly. Piping downstream of the meter is not covered by the regulation, though we believe\nthe operator has an obligation to supply gas only to safe pipe and components. The service regulator, though not a part\nof the meter set assembly much meet the requirements for such devices established by 49 CFR, part 192.\nA State agency may adopt additional or more stringent standards or cover areas not covered by Part 192, pursuant to\nSection 3 (b) of the Natural Gas Pipeline Safety Act of 1968.\nWe hope this answers your question; if you have any further questions, do not hesitate to ask.\nSincerely,\nSIGNED\nJoseph C. Caldwell\nDirector, Acting\nOffice of Pipeline Safety\n\n<<<PAGE 3>>>\n\nMarch 19, 1975\nMr. P. H. Reardon, Manager\nGas Operations and Maintenance\nNew Jersey Natural Gas Company\n601 Bangs Avenue\nAsbury Park, New Jersey 07712\nDear Mr. Reardon:\nThis responds to your letter of February 25, 1975, referring to a statement in this Office's Advisory Bulletin No. 75-1\n(January, 1975) which reads:\n“Where a public housing authority purchases gas from a public utility and then sells and distributes the gas through its\nown mains and service lines to customers who may or may not be metered, the housing authority is the operator of a\ngas distribution system and is subject to the requirements of 49 CFR Part 192.\nIn this regard, you ask whether a public housing authority that does not charge an identifiable fee for gas delivered to\ntenants but instead receives payment for the gas as part of the rent money is selling gas to tenants and consequently\nsubject to 49 CFR Part 192.\nAs to the first part of your question, we believe the housing authority is selling gas to tenants. If, as it appears, the\nhousing authority agrees to furnish gas to tenants and receives compensation for the service by receipt of rent, a sale of\ngas occurs. An allocation of rent for the service or other identifiable charge is not necessary to show a sale of gas.\nAs to the second part of your question regarding the consequence of the sale, the jurisdiction of Part 192 over a person\nin not determined by whether the person is selling gas. Rather, it is determined by whether the person owns or operates\ngas pipeline facilities used to transport gas in commerce. The sale of gas is relevant, but only to indicate that the\ntransportation involved is subject to Part 192. The transportation of gas subject to Part 192 ends when ownership of the\ngas is transferred to an ultimate consumer, normally by sale and delivery to the consumer.\nIn the example quoted from Advisory Bulletin 75-1, the housing authority is transporting gas to others for consumption\nthrough its own pipelines. The sale of gas indicates that the transportation is in commerce and subject to Part 192. The\nfact that the housing authority owns and operates the pipelines involved in the transportation, not its sale of the gas,\nsubjects it to the jurisdiction of Part 192.\nWe appreciate your interest in pipeline safety.\nSincerely,\nOriginal signed by:\nJoseph C. Caldwell\nDirector\nOffice of Pipeline safety\n\n<<<PAGE 4>>>\n\nCox, Castle, Nicholson & Weeks\n1800 Century Park East\nSuite 200\nLos Angeles, California 90067\nOctober 23, 1975\nMr. Joseph C. Caldwell, Director\nOffice of Pipeline Safety\nOffice of the Secretary of Transportation\nWashington, D.C. 20590\nRe: Applicability of Natural Gas\nPipeline Safety Act to\nMastermetered Mobilehome Parks\nDear Sir:\nI have been informed that on December 18, 1970, the Office of Pipeline Safety issued a letter concerning natural\ngas distribution systems in mobilehome parks and municipal housing projects for which there is a single master meter\nfor all of the occupants therein. Reportedly, this letter set forth the Office of Pipeline Safety's position that the mains\nand service lines to the tenants in such complexes are subject to the provisions of 49 C.F.R., Parts 191 and 192, and that\nthe Housing Authority or mobilehome park landlord is an operator within the meaning of such Parts.\nI would appreciate your furnishing me a copy of such letter and any update or explanation of the Office of\nPipeline Safety's position as reported to me.\nYour prompt attention in this matter will be most appreciated.\nVery truly yours,\nLance Jay Robbins","truncated":false,"body_characters":6358}