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Page 1Briefing Paper February 12, 2007 Protecting Unusually Sensitive Areas from Rural Onshore Hazardous Liquid Gathering Lines and Low-Stress Lines Advisory Committee Action: Vote on proposed rule and cost-benefit analysis. Project Contact: Lane Miller Past PHMSA action and advisory committee consideration: • PHMSA held a half-day public workshop on regulation of low stress pipelines on June 26, 2006 in conjunction with an advisory committee meeting. • PHMSA issued a Notice of Proposed Rulemaking (NPRM). (71 FR 52504; Sept. 6, 2006). The NPRM proposed to: - Extend some safety regulations to rural onshore hazardous liquid gathering lines and low-stress lines within ¼ mile of “unusually sensitive areas”. - Apply the safety regulations to these lines based on the most common threats to their integrity – corrosion and third-party damage. • The estimated present value cost of the proposed rule over 20 years (with a 3% discount rate) was $21 million versus equivalent benefits of $49 million. Comments on proposed rule and cost-benefit analysis: The comments are summarized in the attached table. Legislative change: The Pipeline, Inspection, Protection, Enforcement, and Safety Act of 2006 (PIPES Act) directs PHMSA to issue regulations (by December 31, 2007) imposing the same standards on low stress pipelines as applicable to other pipelines. It does not address gathering lines. The PIPES Act allows a phase-in of regulation. A copy of the relevant provision of the PIPES Act is attached. What PHMSA intends to do: PHASE I • Consider carefully the comments and any advice this committee provides. Issue a final rule based on the NPRM that expedites protection for unusually sensitive areas substantially as proposed. • Proceed to gather additional information to support further rulemaking to fully satisfy the PIPES Act provisions. • We are considering issuing a final rule that does the following: • For Gathering Lines - Retain the ¼ mile buffer zone. - Clarify what is meant by “continuous monitoring”.#
Page 2• For Low Stress Lines - Expand the buffer zone to ½ mile for low stress lines and include a provision that allows operators to either reduce or expand the buffer based on a risk analysis. - Clarify in the preamble that the use of daily line balancing may be used as an alternative leak detection method under certain operating conditions as addressed in API 1130. - If possible to differentiate small operators, exclude them from all or at least the corrosion provisions at this first stage of rulemaking. - Clarify what is meant by “continuous monitoring”. PHASE II • Gather additional information and develop an additional notice of proposed rulemaking to fully satisfy directives of the PIPES Act. • These issues include: - Elimination of the buffer zone for low stress pipelines. - Requiring continuous monitoring as part of corrosion control for all operators. - Applying part 195 standards to all low stress lines. - Addressing small operators to the extent not addressed in PHASE I.#
This material provides agency context. It does not replace binding regulatory text, and its legal effect depends on the underlying authority and facts.