{"operation":"document","citation":"0900006480e8d47c","title":"U.S. DOT/RSPA - Fact Sheet re: Draft Regulatory Evaluation for Pipeline Integrity Management in High Consequence Areas (Gas Transmission Operators)","source_type":"rulemaking","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"- PA F- 11- 71367 Draft Final Regulatory Evaluation Pipeline Integrity Management in High Consequence Areas (Gas Transmission Operators) Advisory Committee Action: Vote Our emphasis on the integrity management system encourages a balanced program, addressing the range of prevention and mitigation needs and avoiding reliance on any single tool or overemphasis on any single cause... bounding estimate. Future accidents are likely to have greater consequences, as described in the analysis. In addition, avoiding major accidents, with multiple fatalities, can result in greater benefit. The 16 years of data considered include two years (eleven years apart) in which accidents occurred that had many...","machine_formats":{"json":"https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e8d47c.json","markdown":"https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e8d47c.md"},"app_url":"https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e8d47c","source_url":"https://downloads.regulations.gov/PHMSA-RSPA-1998-4470-0063/attachment_1.pdf","body":"<<<PAGE 1>>>\n\n-\nPA F- 11- 71367\nDraft Final Regulatory Evaluation Pipeline Integrity Management in High\nConsequence Areas (Gas Transmission Operators)\nAdvisory Committee Action: Vote\nOur emphasis on the integrity management system encourages a balanced program, addressing the\nrange of prevention and mitigation needs and avoiding reliance on any single tool or overemphasis\non any single cause of failure. This orientation will lead to addressing the most significant risks, o\nand is the best opportunity to improve industry performance and assure that the high wnsequencz\nareas get the protection they need. It also addresses the interrelationships between failure causes\n-3\n.-:\n1\n-3\n'I\n-?\nand benefits. It promotes the coordination of risk control actions, beyond what a compliance- 2\nbased approach would achieve. -\n- = -- 3\n-. ; .-;\nI 3\nThe cost for operators to identify pipeline segments that can affect high consequence areas is\nT\nI\n--\nestimated to be $9.63 million. These costs will be incurred in the first year d e r the effective d a t e\n<\nof the rule. P\nI\nThe integrated cost to all operators for developing integrity management plans is estimated to be\n$6 1.2 million (plus $370,000 for providing real-time access to performance measures). Annual\ncosts of $6.68 million are projected to review the plans, make changes as needed, and to prepare\nroutine reports. First year costs for performing the necessary data integration are estimated to be\n$17.04 million, reflecting the need for operators to adjust their management systems to assure that\nthe relevant data can be collected and analyzed. Those process changes will not be required in\nfollowing years, when the costs for data integration are estimated to be $8.52 million annually.\nTesting is a k ~ e l e m e n t t h e T h i i i & i € i o n a s s u m e s t n a t ~ i p i ~ ~ o ~ ~ -\nthe addition of perkanent laudchers and receivers for in-line inspection equipment. This increases\nthe costs of in-line inspection for baseline inspections, which would occur under the proposed rule\nfor the first ten years. A portion of transmission piping in high consequence areas will be\ninspected each year, using one of three specified methods. (The proposed rule would allow\noperators to use alternative methods, with adequate justification, but no additional methods are\nprojected in this analysis). The total cost across the industry for testing, including the necessary\nmodification of some pipelines, is estimated to be $16.28 million annually for each of the first\nseven years after the proposed rule becomes effective, $18.44 million annually for the next three\nyears, and $15.07 million annually thereafter.\nAs described in the evaluation, it is difficult to quanti@ the benefit of this proposed rule, because\nit is not now possible to estimate with certainty the effectiveness the proposed requirements\nwould have in avoiding natural gas transmission pipeline accidents. Sixteen years of data indicate\nthat the benefit of the rule in avoiding deaths, serious injuries, and property damage would be\nequal to $53.25 million annually ifthese measures are completely successful in avoiding accidents\nlike those reflected in the current data. Even though this represents the monetized value of all\ndeaths, serious injuries, and property damages reported in the last 16 years, it is not necessarily a\n\n<<<PAGE 2>>>\n\nbounding estimate. Future accidents are likely to have greater consequences, as described in the\nanalysis. In addition, avoiding major accidents, with multiple fatalities, can result in greater\nbenefit. The 16 years of data considered include two years (eleven years apart) in which accidents\noccurred that had many fatalities. The most recent of these accidents was the explosion and fire\ncaused by a pipeline rupture near Carlsbad, NM on August 19,2000, which caused 12 fatalities.\nThe fiequency of such major accidents could be greater in future years absent some regulatory\nchange.\nThis evaluation demonstrates that the costs for implementing the proposed rule will be larger than\nthe monetized benefits it will provide. As described, the maximum quantitative benefit that the\nrule could provide, assuming fbture accident rates and consequences consistent with the recent\nhistorical record and that the proposed rule is completely effective in eliminating such accidents, is\n$53.25 million. The proposed rule is directed at that portion of natural gas transmission pipelines\nwhere an accident is most likely to result in the highest consequences, the pipeline mileage in the\nareas with highest population density. It could, therefore, be quite effective in reducing accident\nconsequences. As a result, the benefits are of the same order of magnitude as the annual costs of\napproximately $30 million. The up-front costs that will be incurred as a result of the proposed\nrule are substantial, however, and are not justified by the resulting quantifiable benefits. Incurring\nthem is necessary in order to establish the improved framework for operator management and\nregulator oversight of safety.\nAs described in the analysis, there are a number of qualitative benefits that will be realized from\nthe proposed change. Foremost among these is providing a basis for improved public confldence\nin pipeline safety. Economic benefits are expected to accrue from this increased level of\nconfidence, including reduced costs for siting and constructing new pipelines, thereby allowing\naccess to the environmental benefits of increased use of natural gas in lieu of other fuels.\n~ Q ~ B ~ g v g s - ~ h s Q c e s s e f d e v ~ l s p i n g - a R - i e ~ ~ ~ ~~-~ ~ -~ ~-\nintegrating data related to pipeline integrity is an important process for the operator, the\ngovernment and the general public. The creation, and development of the plan will alert operators\nof the potential risks and consequences unique to high consequence areas. The planning process,\nincluding the testing schedule, also provides a level of confidence to Federal and state pipeline\ninspectors that pipeline operators are considering, examining, testing, and repairing if necessary,\nnatural and other gas transmission pipelines that may potentially pose severe consequences to\npublic safety. Finally, standardizing the requirements nationally for transmission pipelines will\nsave operators having to face potentially different testing and inspection requirements from the\nvarious state pipeline agencies.\nThe OPS concludes that the qualitative benefits justie the costs associated with initial\nimplementation of the proposed requirements.","truncated":false,"body_characters":6577}