{"operation":"document","citation":"PI-91-008","title":"Conoco Inc. — Pipeline Safety Interpretation","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"1991-03-25","effective_on":null,"summary":"PI-91-008 response to Conoco Inc. concerning 195.1.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-91-008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-91-008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-interpretation-pi-91-008","source_url":"https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/legacy/interpretations/Interpretation%20Files/Pipeline/1991/PI91008.pdf","body":"<<<PAGE 1>>>\n\nMs. Amy Ng\nAttorney, Legal Department\nConoco Inc.\n600 North Dairy Ashford\nHouston, TX 77079\nDear Ms. Ng:\nI am responding to your letter of December 13, 1990, regarding the\nextent to which refinery pipelines are subject to the safety\nregulations in 49 CFR Part 195. The following discussion of how we\napply the regulations should resolve your concern.\nWith a few exceptions, Part 195 applies to pipeline facilities that\ntransport a hazardous liquid in or affecting interstate or foreign\ncommerce. Among the exceptions is transportation through onshore\nproduction, refining, or manufacturing facilities, or storage or\nin-plant piping systems associated with such facilities\n(?195.1(b)(6)).\nPart 195 does not define refining facilities, but we identify them\nby the function implicit in the term. If a facility is involved in\none of the processes of a refinery, we consider it a refining\nfacility.\nLikewise, Part 195 does not define in-plant piping systems\nassociated with refining facilities. Yet these systems, too, can\nbe distinguished by their implicit function. They are piping\nsystems on the grounds of a refinery that are used in the operation\nof the refinery. Their relation to refining sets them apart from a\npipeline that transports a hazardous liquid to or from the\nrefinery. In-plant piping systems included pipe, pumps, valves,\nmeters, and other devices that transfer a hazardous liquid between\nthe various refining facilities. Such systems also include piping\nthat transfers a hazardous liquid between a refining facility or an\nassociated storage tank and a pipeline that transports the liquid\nbetween a refining facility or an associated storage tank and a\npipeline that transports the liquid to or from the refinery.\nPart 195 requires each pipeline operator to provide adequate\ncontrols and equipment to control the pipeline's pressure within\nset limits (?195.406(b)). So for transfers of hazardous liquid\nfrom a refinery to a regulated pipeline, in-plant piping ends and\nthe regulated pipeline begins at the inlet of each pressure control\ndevice on refinery grounds that us necessary for the operator to\nDB\nC:\\WP51\\INTERPRT\\195\\1\\91-03-25\n1\n\n<<<PAGE 2>>>\n\ncontrol pressure in the pipeline outside the refinery grounds. Any\nlateral line that feeds the pipeline upstream from that pressure\ncontrol device is part of on-plant piping. If the operator has\nadequate alternative means to control pressure in the pipeline\noutside the refinery, then we consider the in-plant piping to end\nand the regulated pipeline to begin at the boundary of the refinery\ngrounds, which usually is marked by a fence.\nA similar demarcation applies to the transfer of hazardous liquid\nfrom a regulated pipeline to a refinery. The regulated pipeline\nends and the in-plant piping begins at the outlet of each pressure\ncontrol device on refinery grounds that is necessary for the\noperator to control pressure in the pipeline outside the refinery\ngrounds. If the operator has adequate alternative means to control\npressure in the pipeline outside the refinery grounds, then we\nconsider the regulated pipeline to end at the boundary of the\nrefinery grounds.\nIn some cases the operator of a regulated pipeline may not own the\ndevice on a refiner's grounds that is necessary to control\nnonetheless, is responsible for compliance with Part 195 standards\ngoverning that device, because the operator is using or relying on\nthe device to operate its pipeline according to ?195.406(b).\nThank you for your inquiry. Please let me know if you need any\nfurther assistance regarding our pipeline safety regulations.\nSincerely,\nGeorge W. Tenley, Jr.\nAssociate Administrator for\nPipeline Safety\nDB\nC:\\WP51\\INTERPRT\\195\\1\\91-03-25\n2\n\n<<<PAGE 3>>>\n\nCesar DeLeon\nDirector for Regulatory Programs\nU.S. Department of Transportation\nResearch & Special Programs\nOffice of Pipeline Safety\n400 7th Street, S.W.\nWashington, D. C. 20590\nRe: Refinery Exception in 49 CFR 195\nDear Mr. DeLeon:\nOn November 20, 1990, representatives from Conoco Inc. met in\nWestlake, Louisiana with William Berteges, Department of\nTransportation, and Bill Gortee and Dana Arabie of the Louisiana\nDepartment of Natural Resources, Pipeline Safety, to discuss D.O.T.\nregulations for the transportation of gas and hazardous liquids.\nOne are of discussion addressed in the November 20th meeting was\nthe exception to the regulations in 49 CFR 195.1(b)(6) for\ntransportation of hazardous liquids through refining or\nmanufacturing facilities or storage, or inplant systems associated\nwith such facilities. It was suggested at the meeting that we\nwrite to you to obtain clarification of the D.O.T.'s position on\nthe matter.\nIn refining, there are situations where a portion of a pipeline and\nits pressure source and relief valve are on the refinery's\nproperty, but the line extends beyond the refinery's property line.\nDue to the complexity of refining operations, many times there may\nbe several sources of products feeding this pipeline before it\nleaves the refinery. Some of these sources will consist of pumps\nand/or compressors, while others may be pressure\ncontrollers/regulators off of towers and/or vessels which could be\nfed by a series of other towers and/or vessels, or perhaps even a\ncombination thereof. We have been told that these pipelines are\nsubject to 49 CFR 195, but it is unclear how much of the line is\nregulated.\nIn continuing Conoco's efforts to operate in a safe manner, and to\nensure compliance with the regulations, Conoco requests that you\nclarify the D.O.T.'s position on the following:\n1. If a refinery pipeline leaves the refinery property:\n(a) Do the regulations apply to the entire line, or just\nthat portion of the line outside of the refinery's\nproperty, and the pressure source and relief valve(s)\ncontrolling the pressure on that pipeline? In such a\nsituation, does the D.O.T. regulate within the refinery\nDB\nC:\\WP51\\INTERPRT\\195\\1\\91-03-25\n3\n\n<<<PAGE 4>>>\n\nfence line, despite the exception for refining and\ninplant lines?\n(b) If the entire line is regulated to the source of\npressure, are the lateral lines off such a line\nregulated, even if these lateral lines never leave the\nrefinery?\n2. Is a pressure controller/regulator on a D.O.T. regulated\npipeline leaving the refinery, which limits the pressure on\nthat section of pipeline outside the refinery, considered a\npressure source? (Normally a single pressure\ncontroller/pressure sources is used when there are multiple\nproduct/pressure sources on a line leaving the refinery. This\npressure controller/regulator serves the same purpose as a\npump and/or compressors in that it limits the maximum\noperating pressure (MOP) of the pipeline system.)\n3. What is D.O.T.'s interpretation of the source of designation?\nIs it the point at which the operator turns over custody of\nthe product of the customer at the customer's property\nboundaries? Is it the point at which the operator turns over\ncustody of the product to the customer by means such as a\nmeter, regulator, emergency shutdown valve, etc.?\n4. If a custody meter is located on the operator's property, who\nnormally assumes responsibility of the pipeline from that\nmeter to the source of designation?\nYour assistance in helping us clarify the D.O.T.'s interpretation\nof these regulations will be appreciated.\nYour very truly,\nAmy Ng\nAttorney\nDB\nC:\\WP51\\INTERPRT\\195\\1\\91-03-25\n4","truncated":false,"body_characters":7363}