# Shell Pipe Line Corporation — Pipeline Safety Interpretation

- **operation:** document
- **citation:** PI-79-030
- **title:** Shell Pipe Line Corporation — Pipeline Safety Interpretation
- **source type:** guidance
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** guidance
- **official:** true
- **published on:** 1979-08-28
- **effective on:** Not available
- **summary:** PI-79-030 response to Shell Pipe Line Corporation concerning 195.2.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-interpretation-pi-79-030.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-interpretation-pi-79-030.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-interpretation-pi-79-030
- **source url:** https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/1979/PI79030.pdf
**body:**

<<<PAGE 1>>>

Mr. R. E. Speckman
Manager, Regulations and Maintenance Standards
Shell Pipe Line Corporation
Two Shell Plaza
Houston, Texas 77001
Dear Mr. Speckman:
Your letter of July 5, 1979, requested that the Department of
Transportation clarify the regulatory responsibility for on-line
pipeline transmission pumping equipment located on offshore
platforms that contain both production facilities and on-line
transportation pumping equipment.
You stated that from the Memorandum of Understanding (MOU) between
the Department of Transportation and the Department of the
Interior, you have classified the DOT regulated portion on the
joint function platform as including the pipeline and its directly
associated on-line transmission pumping equipment.
By definition (Section 195.2), a pipeline system or pipeline means
all parts of a carrier's physical facilities through which
commodities move in transportation. Once it is established by
application of Section 195.1 that the pipeline is under DOT's
jurisdiction, then all subsequent on-line transmission pumping
equipment is considered part of the pipeline and would be under
DOT's jurisdiction.
If we can be of further assistance, please let us know.
Sincerely,
/signed/
Cesar De Leon
Associate Director for
Pipeline Safety Regulation
Materials Transportation Bureau
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<<<PAGE 2>>>

Mr. Cesar De Leon, Associate Director
for Pipeline Safety Regulation
Materials Transportation Bureau
Department of Transportation
Washington, D. C. 20590
Dear Mr. De Leon:
We request the Department of Transportation clarify the regulatory
responsibility for on-line pipeline transmission pumping equipment
located on offshore platforms that contain both production
facilities and on-line pipeline transportation pumping equipment.
Shell Pipe Line operates pipelines for the transportation of
hazardous liquids in navigable waters on state lands and on the
Outer Continental Shelf. These pipelines, in some instances, are
routed across both production and non-production platforms. At
some platforms, produced liquids are injected into the pipeline
stream. At other platforms, there is on-line pipeline transmission
equipment that is necessary to maintain the level of pipeline
liquid flow. In one instance, SPLC operates a pipeline located on
a "joint function" platform where produced liquids are injected
into the pipeline stream and where separate and distinct on-line
transmission equipment maintains pipeline flow at the required
levels.
It is our understanding from the May 6, 1976, "Memorandum of
Understanding Between the Department of Transportation and the
Department of the Interior" that from the outlet flange where
hydrocarbons are produced, separated, dehydrated, or otherwise
processed, whichever facility is farther downstream, pipeline
facilities are regulated by the Department of Transportation,
including subsequent on-line transmission equipment but excluding
subsequent production equipment. From this memorandum of
understanding, we have classified the DOT regulated portion on the
joint function platform as including the pipeline and its directly
associated on-line transmission pumping equipment. Further, the
equipment utilized by the producer in injecting the liquids
produced at this platform to our pipeline has been classified as
production equipment which we understand is regulated by the
Department of Interior.
We have recently had the DOI indicate nonagreement with our
understanding. Upon a thorough review of the DOT/DOI Memorandum of
Understanding, we do not feel that there is any description that
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<<<PAGE 3>>>

would lead a reader to an opinion different from our understanding
of DOT regulation of on-line transmission equipment used for the
transmission of liquids to shore. Unfortunately, the illustration
included with the DOT/DOI Memorandum of Understanding does not
clearly illustrate the case of on-line transmission equipment
located on a platform described as a production platform.
Accordingly, we furnish as an attachment a suggested modification
to the illustration included with the DOT/DOI Memorandum of
Understanding that incorporates on-line transmission equipment for
a DOT regulated pipeline on a production platform. We believe this
modified diagram better illustrates the pipeline facilities
regulated by DOT as described in the paragraph headed "DOT
Responsibilities".
Your assistance in clarifying this matter would be greatly
appreciated.
Very truly yours,
R. E. Speckman, Manager
Regulations and Maintenance Standards
ATTACHMENT - DIAGRAM
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