{"operation":"document","citation":"PI-77-0201","title":"Alyeska Pipeline — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"1977-05-26","effective_on":null,"summary":"PI-77-0201 response to Alyeska Pipeline concerning 195.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-77-0201.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-77-0201.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-77-0201","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/2026-04/Alyeska-Pipeline-PI-77-0201-5-25-1977-Part192.1-%2315.pdf","body":"<<<PAGE 1>>>\n\nPI-77-0201\nP #y\nInterpretation 195.1 (#15)\nMay 26, 1977\nMr. E. L. Patton\nChairman of the Board\nAlyeska Pipeline Service Company\n1835 S. Bragaw Street\nAnchorage, Alaska 99504\nDear Mr. Patton:\nThis is in furtherance to my letter of March 4, to Mr. Darch, and our meeting in Dallas, Texas, on\nMarch 15, 1977, regarding Mr. O'Connell's letters to Mr. Knodell of September 16, 1976, and\nJanuary 25, 1977, concerning the extent of Department of Transportation (DOT) jurisdiction over\n(1) pipelines operated at a stress level of 20 percent or less of specified minimum yield strength\n(SMYS) and (2) gravity flow pipes at the Valdez terminal.\nIn our meeting in Dallas, Texas, attended by members of Alyeska and Materials Transportation\nBureau (MTB) staff, we reviewed piping drawings of the pipelines that are of concern to\nAlyeska.\nWith regard to the pipelines which operate at less than 20 percent SMYS, the Alyeska drawing,\n\"Inventory Line Diagram, Pump Station No. 8,\" dated October 26, 1976, which was provided us\nin Dallas, depicts these pipelines in yellow. The Alyeska personnel explained that these lines are\n12-inch circulating lines within a pump station.\nThe question of DOT jurisdiction over these circulating lines is not dependent on the relationship\nbetween the stress level of those lines and the SMYS of the line pipe in the system. Rather, it\ndepends on whether the circulating lines are transporting crude oil in interstate or foreign\ncommerce.\nMTB staff was informed that these lines are used during startup of a pump and during low flow\nconditions to keep the pump case temperature from becoming too high and serve only to draw\noff crude oil from the discharge side of the pumps and deliver the oil to a tank. MTB was further\ninformed that this oil is later reintroduced into the upstream side of the pump station through a\n36-inch relief line.\nBased on this information, it appears that the circulating lines, when used, are taking crude oil\nout of the transportation stream for purposes of aiding in the proper operation of the pump\nstation. It also appears that the circulating lines are not necessary for that part of the operation of\nthe pump station affecting the safe transportation of crude oil in interstate or foreign commerce.\n\n<<<PAGE 2>>>\n\nThis information leads me to conclude that the circulating lines within a pump station are not\ntransporting crude oil in interstate or foreign commerce and, therefore, are not subject to the\nrequirements of 49 CFR Part 195.\nWith regard to the gravity flow lines at the Valdez terminal, the Fluor Ocean Services, Inc.\ndrawing \"D-50-M1558,\" dated August 9, 1976, Valdez Terminal, Crude Systems - B31.4 49 CFR\n195 and drawing \"D-50-M1559,\" dated August 9, 1976, Valdez Terminal, Crude, Crude Transfer\nand Relief ANSI-B31.4, which were provided us in Dallas, depict these pipelines.\nAlyeska personnel advised us in Dallas that the lines which were described in the letters of\nSeptember 16, 1976, and January 25, 1977, were not limited to being used as gravity lines at all\ntimes since the tanks could be bypassed and the crude oil could be pumped directly to the ship\nthrough these lines from the 48-inch main line. Consequently, these lines are not a unique gravity\npipeline system and are in fact a continuation of the pipeline system all the way to the ship\ndocking berths and as such are subject to the requirements of 49 CFR Part 195.\nDrawing D-50-M1559 also indicates in heavy dark lines crude transfer lines, relief lines, and\nlines from the common manifold or \"feed-in\" line to each tank. MTB was informed that the\nheavy dark line indicated pipeline that Alyeska considered subject to ANSI-B31.4 but not 49\nCFR Part 195. However, during the Dallas meeting, Alyeska personnel indicated that the\ndrawing, in relation to the relief lines, was in error because Alyeska correctly considers such\nrelief lines to be subject to 49 CFR Part 195. In addition, Alyeska personnel sought MTB\nconcurrence on the nonapplicability of 49 CFR Part 195 to the crude transfer lines and the lines\nfrom the manifold or \"feed-in\" line to each tank on the basis that these lines operate at stress\nlevels of 20 percent or less of the SMYS of the line pipe in the system.\nThe MTB cannot concur that the requirements of 49 CFR Part 195 are not applicable to the lines\nfrom the manifold or \"feed-in\" line to each tank. Because crude oil is delivered directly from the\n48-inch main line to tanks through these lines they are an integral part of the regulated main line\nsystem and, therefore, cannot be considered a unique system in order to qualify for the exception\nprovided under 49 CFR 195.1(b)(3). As stated in my March 4 letter, \"The applicability of Part\n195 is determined not in relation to portions or segments of a pipeline system, but rather in\nrelation to a pipeline system in its entirety. . . .\" Under §195.1(b)(3) only a \"pipeline system,\" as\nthat term is defined in §195.2, that operates at a stress level of 20 percent or less of SMYS of the\nline pipe in the system is excepted. This exception is not applicable to segments of a system that\nmeet this criteria unless the entire system also meets this criteria.\nAs to the crude transfer lines that Alyeska considers subject to ANSI-B31.4 but not 49 CFR Part\n195, I have concluded that the regulations do not apply. These lines are used exclusively to\ntransfer crude oil from one tank to another. Like our discussion regarding the 12-inch circulating\nlines, MTB believes the DOT jurisdiction over the crude transfer lines is not dependent on\nwhether they qualify for the exception under §195.1(b)(3). Rather, MTB believes that during the\ntransfer of crude oil from one tank to another the oil is not in interstate or foreign commerce and,\n\n<<<PAGE 3>>>\n\ntherefore, the pipelines used to accomplish that transfer are not subject to the requirements of 49\nCFR Part 195.\nI trust that these findings will prove helpful to Alyeska in assuring continued compliance with\nDOT's liquid pipeline safety regulations.\nIn anticipation of my conclusion that the regulations are applicable to the \"gravity flow\" lines at\nthe Valdez terminal and having been advised by the Department of the Interior's Alaska Pipeline\nOffice that it had issued nonconformance reports on 13 girth welds at the terminal, Mr. Cesar\nDeLeon, Acting Director of the Office of Pipeline Safety Operations, met with management and\nsenior staff personnel of Alyeska, the Alaska Pipeline Office, and Mechanics Research\nIncorporated, in Valdez, Alaska, on May 12, 1977, to discuss the Valdez terminal lines and\nconduct an onsite inspection of these girth welds. Mr. DeLeon will communicate directly with\nMr. M. J. Robinson of Alyeska Quality Assurance regarding his evaluation of the circumstances\nwith respect to each of the repaired welds.\nSincerely,\nJames T. Curtis, Jr.\n\n<<<PAGE 4>>>\n\nMEMORANDUM\nDATE: January 7, 1977\nSUBJECT: Scope of 49 CFR 195.1(b)(2)(3) exceptions to Part 195 applicability\nFROM: Robert L. Beauregard, TGC-50\nTO: Director, Materials Transportation Bureau\nQuinn O'Connell's letter dated September 16, 1976, concludes that Part 195 safety regulations do\nnot apply to (1) gravity flow of pipes at the Valdez Terminal which will carry crude from nearby\nstorage tanks down to the tanker loading facility, and (2) the pipes utilized under certain\ncircumstances to transport crude to tankage located at the various pump stations along the entire\nlength of the pipeline, which pipes will always operate at a stress level of 20 percent or less of\nspecified minimum yield. The support advanced for these conclusions is the exceptions to Part\n195 contained in §195.1(b)(2)(3):\n(b) This part does not apply to--\n* * *\n(2) Transportation through a pipeline by gravity;\n(3) Transportation through pipelines that operate at a stress level of 20 percent or less of the line\npipe in the system; and\n* * *\nAlthough O'Connell is willing to assert that §195.1(b)(2)(3), standing alone, will support the\nabove conclusion, he cites the definition of \"pipeline system\" or \"pipeline\" as further support:\n$195.2 Definitions.\nAs used in this part--\n***\n'Pipeline system' or 'pipeline' means all parts of a carrier's physical facilities through which\ncommodities move in transportation that is subject to this part...\n***\n\n<<<PAGE 5>>>\n\nO'Connell asserts that this definition, viewed in conjunction with the §195.1 exceptions,\nrecognizes that \"parts\" of a pipeline system are severable and therefore may be viewed separately\nfor purposes of regulation.\nIt is my opinion that one of O'Connell's conclusions and the bases for both conclusions are\nincorrect.\nPart 195 is written to apply to certain \"transportation by pipeline\". Likewise, Part 195 excepts\nfrom its applicability certain \"transportation by pipeline\". To determine the true applicability of\nthe regulations the phrase \"transportation by pipeline\" must be construed consistent with how\nterms are defined for purposes of Part 195.\nBy definition \"pipeline\" is synonymous to \"pipeline system\". The definitions also expressly state\nthat a \"pipe\" or \"line pipe\" is only one part of a \"pipeline system\" as are valves and other\nappurtenances connected to line pipe, pumping units, etc., Therefore, Part 195 applicability is\ndetermined by looking to the system in its entirety rather than individual segments or parts of the\nsystem. To take advantage of the exceptions contained in §195.1(b)(2)(3) therefore demands this\nkind of determination.\nUnder §195.1(b)(2) only a \"pipeline system\" that accomplishes transportation by gravity is\nexcepted. The exception cannot be applied to segments of a system that meet this criteria if the\nentire system does not.\nLikewise, under §195.1(b)(3) only a \"pipeline system\" that operates at a stress level of 20 percent\nor less of specified minimum yield strength of the line pipe in the system is excepted. The\nexception cannot be applied to segments of a system that meet this criteria if the entire system\ndoes not.\nThese determinations are contra to O'Connell's and therefore remove the underpinning of his\nconclusions. However, because I view the gravity flow pipes at the Valdez terminal which will\ncarry crude from nearby storage tanks down to the tanker loading facility as an integral system\nand not a part of the main line system, I would conclude that those pipes fall within the\n§195.1(b)(2) exception and need not comply with Part 195.\nI cannot reach the same conclusion with regard to the relief lines that are alleged to operate at 20\npercent or less of specified minimum yield. These lines clearly are an integral part of the main\nline system and because the entire main line system does not operate at the 20 percent or less\nstress level, the subject relief lines cannot be excepted from Part 195.\nO'Connell's discussion and interpretation of regulatory history is sloppy. From the first ICC\nproposed regulation regarding pipeline safety to existing pipeline standards, the applicability and\nexceptions to applicability have been worded in terms of pipeline systems. However, O'Connell\nchooses to ignore that and talk in terms of pipes (only a part of a system) which allows him to\nreach his desired conclusions (pipeline, pipeline system, pipe, and line pipe have been\nconsistently defined through the years).\nIt is interesting to note that certain portions of the main line system operate on the principal of\ngravity and many miles of that system (especially on the suction side of pump stations) operate at\n\n<<<PAGE 6>>>\n\na stress level of 20 percent or less of specified minimum yield. However, Alyeska has never\nasserted that these segments of the system should be excepted from the regulations.\nRobert L. Beauregard","truncated":false,"body_characters":11700}