{"operation":"document","citation":"PI-85-006","title":"Petroleum Operations & Support Services, Inc. — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"1985-07-02","effective_on":null,"summary":"PI-85-006 response to Petroleum Operations & Support Services, Inc. concerning 195.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-85-006.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-85-006.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-85-006","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/1985/PI85006.pdf","body":"<<<PAGE 1>>>\n\nJuly 2, 1985\nMr. Walter S. Malinowski\nDirector, Contract Administration\nPetroleum Operations & Support Services, Inc.\n850 South Clearview Parkway,\nNew Orleans, LA 70123-3498\nDear Mr. Malinowski:\nYour letter of January 31, 1985, asks whether the regulations in 49 CFR Part 195 apply to five\npetroleum pipelines associated with the Strategic Petroleum Reserve (SPR) that are owned by the U.S.\nDepartment of Energy (DOE) and contractually operated by Petroleum Operations and Support\nServices, Inc. (POSSI).\nPart 195 was issued under Section 203 of the Hazardous Liquid Pipeline Safety Act of 1979 (49 USC\n2002). As stated in §195.1(a), the regulations apply to pipelines which are subject to the jurisdiction of\nthe Federal Energy Regulatory Commission (FERC) or are on the Outer Continental Shelf (OCS).\nThere are exceptions listed in §195.1(b) that do not appear relevant to the five SPR pipelines. Further,\nnone of the five pipelines is on the OCS.\nIn determining whether a pipeline that is not on the OCS is subject to Part 195, we look to whether\ntariffs or accounting records for the pipeline are on file at FERC. To our knowledge, no such filings\nhave been made for any of the SPR pipelines. Therefore, the Part 195 regulations are not currently\nbeing enforced against those pipelines.\nIn general, pipelines which are subject to FERC jurisdiction and, thus, to Part 195 are those used in\ninterstate or foreign commerce. It has been proposed to expand the scope of Part 195 to cover\npipelines which are not used in interstate or foreign commerce but which such commerce. (Docket PS-\n80; 49 FR 11226, March 26, 1984). The proposal also would eliminate the reference to FERC\njurisdiction for the purpose of indicating which pipelines are used in interstate or foreign commerce.\nWhen this proposed amendment becomes final (publication scheduled for February 1985), the SPR\npipelines clearly will come within the scope of Part 195 regardless of FERC jurisdiction, because either\nthey are used in interstate or foreign commerce or they affect such commerce.\nAs provided by 49 USC 2002, \"[t]he standards [Part 195] apply to each person who engages in the\ntransportation of hazardous liquids or who owns or operates pipeline facilities.\" The term \"person\", as\ndefined by 49 USC 2001(1), does not include the United States or any administrative agency thereof.\nTherefore, DOE is not obligated to comply with the Part 195 standards, even if the SPR pipelines fall\nwithin the scope of Part 195.\nDB/dal/195.1\n85-07-02\n1\n\n<<<PAGE 2>>>\n\nHowever, as a corporation, POSSI is a \"person\" under the definition in 49 USC 2001(1). Also, we\nunderstand that POSSI operates the SPR pipelines on its own, independent of DOE's control. Thus, it\nwould have to meet all applicable Part 195 standards for any pipelines that are within the scope of Part\n195. In accordance with 49 CFR 195.401(c), applicable standards would include those covering\ndesign and construction, as well as accident reporting, operation, and maintenance.\nIn short, in the absence of affirmative information that the SPR pipelines are subject to FERC\njurisdiction, POOSI need not comply with the Part 195 Standards as they are currently applied.\nHowever, when the amendment proposed in Docket PS-80 takes effect, POSSI will have to comply\nwith applicable Part 195 standards for each SPR pipeline it operates.\nWe trust this adequately responds to your inquiry.\nSincerely,\n/signed/\nRichard L. Beam\nAssociate Director for\nPipeline Safety Regulation\nMaterials Transportation Bureau\nDB/dal/195.1\n85-07-02\n2","truncated":false,"body_characters":3565}