# U.S. DOT/PHMSA - Special Permit Analysis & Findings - **operation:** document - **citation:** 0900006480e91c2f - **title:** U.S. DOT/PHMSA - Special Permit Analysis & Findings - **source type:** rulemaking - **agency:** Pipeline and Hazardous Materials Safety Administration - **status:** current - **official:** true - **published on:** Not available - **effective on:** Not available - **summary:** PHMSA describes the special permit application (PHMSA-2008-0330) submitted November 13, 2008, for two segments on Columbia Gulf’s 30-inch Mainline 200 and 36-inch Mainline 300 in Wilson County, TN, where class locations changed to Class 3, and explains the special permit scope, required conditions, evaluative criteria, enforcement history considerations, and PHMSA’s conclusion that granting the special permit under specified conditions is consistent with pipeline safety. Scope includes the two 1,600-foot special permit segments and ~50.30 mile special permit inspection areas on each pipeline. Limitations and conditions noted include threshold requirements, additional inspections and surveys (ILI, DCVG/ACVG, CIS, SCCDA), girth weld records or leakage surveys, coating/cathodic protection remediation, periodic reassessments, training of senior management and technical staff, and PHMSA’s use - **machine formats:** - **json:** https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e91c2f.json - **markdown:** https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e91c2f.md - **app url:** https://regulus.evalyn.ai/document/regulations-gov-attachment-0900006480e91c2f - **source url:** https://downloads.regulations.gov/PHMSA-2008-0330-0003/attachment_1.pdf **body:** <<>> 1 U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION (PHMSA) Special Permit Analysis and Findings Special Permit Information: Docket Number: PHMSA-2008-0330 Requested By: Columbia Gulf Transmission Company' Date Requested: November 13, 2008 Code Sections: 49 CFR § 192.611 Purpose: The Pipeline and Hazardous Materials Safety Administration (PHMSA) provides this information to describe the facts of the subject special permit application submitted by Columbia Gulf Transmission Company (Columbia Gulf), to discuss any relevant public comments received with respect to the application, to present the engineering/safety analysis of the special permit application, and to make findings regarding whether the requested special permit should be granted and if so under what conditions. Pipeline System Affected: This special permit applies to two natural gas pipeline segments on the 30-inch Mainline 200 and 36-inch Mainline 300 pipelines operated by Columbia Gulf in Wilson County, TN, where changes have occurred from original Class 1 locations to Class 3 locations or a Class 2ª location to Class 3 location. This special permit allows Columbia Gulf to continue to operate the two pipeline segments at their current maximum allowable operating pressure (MAOP) of 1008 pounds per square inch gauge (psig) for the 30-inch Mainline 200 and 1008 psig for the 36-inch Mainline 300. Columbia Gulf Transmission Company is owned and operated by NiSource Gas Transmission and Storage (NGT&S). location in accordance with a § 192.611(a) hydrostatic test. " The Class 3 location special permit segments were originally a Class 1 location area that was upgraded to a Class 2 <<>> 2 This special permit applies to the special permit segments defined as follows using the Columbia Gulf pipeline survey stationing (Sta.): • Special Permit Segment I: 30-inch Mainline 200 - 1600 feet, Sta. 3030+43 to Sta. 3046+43 • Special Permit Segment 2: 36-inch Mainline 300 - 1600 feet, Sta. 3025+55 to Sta. 3041+55 This special permit applies to the special permit inspection area(s) defined as follows using the 30-inch Mainline 200 and the 36-inch Mainline 300 pipeline stationing as a reference: Special permit inspection areas - means the area that extends 220 yards on each side of the centerline of each pipeline along the entire length of the Columbia Gulf 30-inch Mainline 200 and the 36-inch Mainline 300 pipelines defined as follows: • Special Permit Inspection Area 1: 30-inch Mainline 200 - Sta. 1710+43 to Sta. 4366+43, (50.30 miles) • Special Permit Inspection Area 2: 36-inch Mainline 300 - Sta. 1705+55 to Sta. 4361+55, (50.30 miles) Note: The special permit inspection area extends approximately 50.30 miles along each pipeline (Mainlines 200 and 300) with overlapping areas and includes the special permit segment. The special permit inspection area is located in Williamson, Davidson, Wilson, Sumner, and Trousdale Counties, TN. The special permit inspection area extends from approximately 25 miles upstream of the special permit segments to approximately 25 miles downstream of the special permit segments, a total of approximately 50.30 miles on each pipeline. Special Permit Request: Columbia Gulf submitted an application to PHMSA on November 13, 2008, for a special permit seeking relief from the Federal pipeline safety regulations in 49 CFR § 192.611 for two segments on the 30-inch Mainline 200 and the 36-inch Mainline 300 natural gas transmission pipelines, where a change has occurred from a original Class 1 location per 192.611, to a Class 3 location in Wilson County, Tennessee. This special permit allows Columbia Gulf to continue to operate the pipeline segments at their current maximum allowable operating pressure (MAOP) of 1008 pounds per square inch gauge (psig) on the Mainlines 200 and 300 pipelines. The Federal <<>> 3 pipeline safety regulations in 49 CFR § 192.611, require natural gas pipeline operators to confirm or revise the MAOP of a pipeline segment after a change in class location. A special permit would allow Columbia Gulf to continue to operate each of the two special permit segments on the 30-inch Mainline 200 and the 36-inch Mainline 300 at its existing MAOP despite a change in class location. Columbia Gulf did not include the Mainline 100 pipeline in the special permit request. In its application, Columbia Gulf suggested that the two special permit segments be included in separate special permit inspection areas. The special permit inspection areas on the Mainline 200 and the Mainline 300 pipelines, would begin approximately 25 miles upstream of the Special Permit Segment and end approximately 25 miles downstream of Special Permit Segment for a total of 50.30 miles. Public Notice: On January 23, 2009, PHMSA posted a notice of this special permit request in the Federal Register (74 FR 4298). PHMSA did not receive any comments for or against this special permit request as a result of this notice. The request letter, Federal Register notice and all other pertinent documents are available for review in Docket No. PHMSA-2008-0330 in the Federal Docket Management System (FDMS) located on the internet at www.Regulations.gov. Analysis: Background: On June 29, 2004, PHMSA published in the Federal Register (69 FR 38948) the criteria it uses for the consideration of class location change waivers, now being granted through special permits. First, certain threshold requirements must be met for a pipeline section to be further evaluated for a class location change special permit. Second, the age and manufacturing process of the pipe; system design and construction; environmental, operating and maintenance histories; and integrity management program (IMP) elements are evaluated as significant criteria. These significant criteria are presented in matrix form and can be reviewed in the FDMS, Docket Number PHMSA-RSPA-2004-17401. Third, such special permits will only then be granted when pipe conditions and the operator's active integrity management program provides a level of safety greater than or equal to a pipe replacement or pressure reduction. As described later in this document, in addition to technical review, PHMSA focused heavily on enforcement history in reviewing this application. <<>> 4 Threshold Requirements: Each of the threshold requirements published by PHMSA in the June 29, 2004, FR notice is discussed below in regards to the Columbia Gulf special permit petition. 1) No pipeline segments in a class location changing to Class 4 location will be considered. This special permit request is for two segments of the Columbia Gulf pipeline system where a class location change has occurred from Class 1 or 2 to Class 3. Columbia Gulf has met this requirement in details submitted in application. 2) No bare pipe will be considered. These Columbia Gulf special permit segments are coated with coal tar. Columbia Gulf has met this requirement in details submitted in application. 3) No pipe containing wrinkle bends will be considered. There are no wrinkle bends in the special permit segments. Columbia Gulf has met this requirement in details submitted in application. 4) No pipe segments operating above 72% of the specified minimum yield strength (SMYS) will be considered for a Class 3 special permit. These special permit segments operate at or below 72% SMYS. Columbia Gulf has met this requirement in details submitted in application. 5) Records must be produced that show a hydrostatic test to at least 1.25 x MAOP and 90% of SMYS. Columbia Gulf has met this requirement in details submitted in application. 6) In-line inspection (ILI) must have been performed with no significant anomalies identified that indicate systemic problems. Columbia Gulf has met this requirement in details submitted in application. 7) Criteria for consideration of class location change waiver, now being granted through special permit, published by PHMSA in the Federal Register (69 FR 38948), define a waiver inspection area (special permit inspection area) as up to 25 miles of pipe either side of the waiver segment (special permit segment). The special permit inspection areas must be inspected according to Columbia Gulf's integrity management program and periodically inspected with an in-line inspection technique. The special permit inspection areas are approximately 50.3 miles long on both the Mainline 200 and Mainline 300 pipelines. This special permit will be issued contingent upon Columbia Gulf's incorporation of the two special permit segments in its written integrity management program as "covered segments" in a "high consequence area" (HCA) per 49 CFR § 192.903. <<>> 5 The two special permit segments meet the seven threshold requirements. Additional ILI tool runs will be required in the special permit conditions. Criteria Matrix: The original and supplemental data submitted by Columbia Gulf for the two special permit segments have been compared to the class location change special permit criteria matrix. The two special permit segments falls in the probable acceptance column of the criteria matrix for all criteria except for: Possible Acceptance: Pipe material (low or unknown toughness), pipe coating (coal tar), and pipe manufacture (1963 and 1968, DSAW). b. Requires substantial justification: Columbia Gulf has no records of performing non-destructive testing of girth welds, direct assessment (ECDA and SCCDA), and has outstanding inspection findings from a CAO on its pipelines. Moreover, the enforcement history for Columbia Gulf indicates outstanding inspection findings from Corrective Action Orders (CAO) on its pipelines. The data findings below fall within the "probable acceptance" or the "requires substantial justification" columns of the criteria matrix: 1) Pipe design and construction, including pipe manufacture, material and design stress: Mainline 200 and Mainline 300 pipelines were installed in 1963 & 1968 and consists of American Petroleum Institute Specification 5L, Specification for Line Pipe (API 5L), submerged arc welded (SAW), X-60 steel pipe manufactured by National Tube and double submerged arc welded (DSAW), X-65 steel pipe manufactured by U.S. Steel. These pipes are of unknown toughness but Columbia Gulf has addressed this risk in their integrity management plan. Moreover, none of these pipelines have any known systemic manufacturing issues. This places the two special permit segments in the "possible acceptance" column of the criteria matrix 2) Girth welds: Columbia Gulf does not know if the girth welds were nondestructively tested during initial construction and has been unable to locate any supporting documentation thus far. This places both special permit segments in the "requires substantial justification" column of the criteria matrix. While there have been no reported problems with girth welds <<>> on these pipelines in the special permit inspection area, to address the girth weld issue this special permit will include a condition requiring Columbia Gulf to provide girth weld inspection records, or to certify that there have been no in-service leaks or breaks in the girth welds on Mainline 200 and Mainline 300 pipelines in the special permit inspection area. In the absence of records, Columbia Gulf will also be required to perform leakage surveys using leak detection equipment along the entire length of each special permit segment within 60 days atter the grant of this special permit. Columbia Gulf must prepare and follow a girth weld remediation plan for both special permit segments. 3) ILl Time Frame: Mainline 200 was last inspected with a high-resolution MFL and a geometry tool in July 2004, and in October 2005. Mainline 300 was last inspected with a high-resolution MFL and a geometry tool in July and August 2004. This places both special permit segments in the "possible acceptance" column of the criteria matrix. To address ILI issues, this special permit will be conditioned upon Columbia Gulf treating both special permit segments as a "covered segment" in a "high consequence area" per 49 CFR $ 192.903. The special permit conditions specify the time intervals between ILI runs. 4) Direct Assessment (ECDA & SCCDA): Columbia Gulf has not completed an external direct assessment (ECDA) or a stress corrosion cracking assessment (SCCDA) of the special permit segments. This places both special permit segments in the "requires substantial justification" column of the criteria matrix. To address these issues, this special permit will be conditioned upon Columbia Gulf completing a Direct Current Voltage Gradient (DCVG) survey or an Alternating Current Voltage Gradient (ACVG) survey; a close interval survey (CIS); and a SCCA along Mainline 200 and Mainline 300 pipelines not later than one year after the grant of this special permit. PHMSA has determined that imposing the special permit conditions will address these concerns and provide equivalent safety for these areas. Operational Integrity Compliance: PHMSA has reviewed this special permit request to ensure that integrity threats to the pipeline in the special permit segments and special permit inspection areas are addressed in the operator's operations and management plan (O&M Plan). Columbia Gulf must have a systematic program to review and remediate the pipeline for safety concerns. <<>> 7 Additional operational integrity review and remediation requirements will be required by this special permit for this special permit segment class location change. The pipeline operational integrity requirements are to ensure that the operator has an ongoing program to locate and remediate safety threats. Some of these threats to integrity and safety are the pipe coating quality, cathodic protection effectiveness, operations damage prevention program for third party damage, weld seam and girth weld integrity, anomalies in the pipe steel, and material and structures either along, or near the pipeline that could cause the cathodic protection system to be ineffective. PHMSA carefully designed a comprehensive set of conditions that Columbia Gulf would be required to meet in order for the special permit to be granted. Among other things, the conditions include: • A close interval survey to determine the effectiveness of the cathodic protection system must be performed within the special permit segments and special permit inspection area and all areas with inadequate cathodic protection must be remediated. • A coating survey to determine the quality of the pipe coating must be conducted and in- effective coating areas must be remediated within the special permit segments. • Stress corrosion cracking surveys on the pipeline will be required to ensure that the pipe steel is not cracking due to the effects of high and near neutral pH SCC, within the special permit segments and special permit inspection area. • The latest methods of damage prevention must be incorporated by the operator, such as the best practices of the Common Ground Alliance (CGA), within the special permit inspection areas. • Interference currents from electric transmission lines and other interfering structures in the special permit segments and special permit inspection area must be identified, controlled and mitigated by conducting surveys and installing grounding systems where required. • An analysis of pipeline field coated girth weld coatings that could have shielding coatings that could cause corrosion of the pipe steel must be undertaken in the special permit segments and special permit inspection area, and indications from in-line inspection logs showing 30% or greater wall loss corrosion on shielding or unknown coatings must be exposed and evaluated. <<>> 8 • Anomalies and dents on the pipeline must be repaired based upon the special permit repair criteria. • Girth welds in the special permit segments must have had a non-destructive test plan during construction, or a quality review and remediation program must be implemented by the pipeline operator. • All shorted casing (either metallic or electrolytic) at road crossings and railroad crossings in the special permit segments and special permit inspection areas must be cleared to prevent corrosion. • Pipeline longitudinal seams within the special permit segments and special permit inspection area must have an engineering analysis to determine if there are any threats and remediated if integrity threats are determined. • Periodic close interval surveys and in-line inspection surveys (pipeline internal surveys to determine corrosion in the pipeline) must be performed on the special permit segments and special permit inspection area at the applicable reassessment intervals. • Training of Senior Executive Management (Executive Vice President and Group CEO, Vice President of Operations and Vice President of Engineering), Engineering and Operations Managers and Supervisors, and Technical Personnel (Engineers and Operations Technicians) in natural gas pipeline integrity management, corrosion control, and anomaly evaluation, validation and repairs to meet Part 192 and these special permit conditions. • Columbia Gulf must maintain an open and transparent relationship with PHMSA to ensure effective implementation of special permit conditions, and must make records and applicable information available to PHMSA upon request. Columbia Gulf must fully execute the special permit conditions and proactively respond to findings encountered throughout implementation. The special permit will contain numerous conditions to ensure Columbia Gulf meets or exceeds the threshold requirements with equivalent safety, and to ensure that granting the special permit will not be inconsistent with safety. <<>> 9 Past Enforcement History - 2000 through 2009 The enforcement history is an important reflection of how Columbia Gas has been observed to follow pipeline safety regulations, and was a major area of focus for the review of this application. A review of PHMSA enforcement actions against Columbia Gulf and Columbia Gas from 2000 through 2009, shows the following enforcement actions against the companies. The existence of these actions requires substantial justification pursuant to the Class Location Special Permit Criteria, as confidence is necessary that conditions contained in the special permit would be closely followed. Columbia Gulf and Columbia Gas are owned and operated by NiSource Gas Transmission and Storage (NGT&S). Below is a listing of PHMSA closed enforcement matters of all types in all PHMSA Regions for Columbia Gulf and Columbia Gas from 2000 through 2009: • Letters - of Concern or Warning - 30 matters • Notices - of Amendment or of Probable Violation - 20 matters • Fines - $1,221,000 collected, additional penalties have been proposed The preceding enforcement history summary reveals a number of compliance issues, including pipeline maintenance issues. PHMSA initially was inclined to deny this special permit application based on the enforcement history. PHMSA notified Columbia Gulf senior management of the agency's enforcement history concerns prior to taking final action to deny the special permit application. Columbia Gulf acknowledged performance issues and requested a meeting with PHMSA, to explain improvements the company had made to its pipeline safety programs that were designed to improve compliance with the regulations. In a meeting with PHMSA on July 28, 2009, Columbia Gulf's senior management gave a presentation entitled "Integrity Management Improvements," which described changes made by Columbia Gulf to improve compliance with pipeline safety regulations. In an August 27, 2009, meeting with PHMSA, Columbia Gulf presented its "Special Permit Management Plan," which described an organizational structure and plan to manage special permit compliance. The presentations from the meetings listed above are posted on the docket. <<>> 10 In analyzing whether or not to grant a special permit, PHMSA considered the organizational, management and procedural changes described by Columbia Gulf. PHMSA believes that some of these changes are positive and necessary for pipeline safety, and will incorporate additional conditions into the special permit to capture the company's commitments. These additional conditions will require Columbia Gulf (NGT&S) Executive Management, Mid-Level Management and Technical Support Personnel to make improvements in integrity management, training, and operating procedures. The additional conditions include: Columbia Gulf (NGT&S) must complete the training of Senior Executive Management (Executive Vice President/Group CEO, Vice President of Operations and Vice President of Engineering), Engineering and Operations Managers and Supervisors, and Technical Personnel (Engineers and Operations Technicians) in natural gas pipeline integrity management, corrosion control, anomaly evaluation, validation and repairs to meet Part 192 and the special permit conditions as follows: • Columbia Gulf Senior Executive Management Level Commitment to: a) Execution of Special Permit Requirements for Class Location Changes in accordance with letter from Mr. Chris Helms, Executive Vice President and Group CEO, of NGT&S (Columbia Gulf) to PHMSA dated September 21, 2009 and b) completion of all outstanding Corrective Action Orders (CAO) on the Columbia Gulf System. • Columbia Gulf (NGT&S) must maintain a transparent relationship with PHMSA to ensure implementation of all conditions. • Columbia Gulf 's Executive Vice President/Group CEO, will require letters of commitment from responsible employees throughout Columbia Gulf (NGT&S), requiring that these individuals commit in writing to specific special permit conditions, to reinforce and demonstrate the full commitment to compliance with the special permit throughout the organization. PHMSA has determined that imposing the special permit conditions summarized in this document will ensure that granting the special permit will not be inconsistent with safety. <<>> 11 Findings: Based on the information submitted by Columbia Gulf and PHMSA's analysis of the technical, operational, and safety issues, and given the conditions that will be imposed in the special permit, PHMSA finds that granting this special permit to Columbia Gulf to operate special. permit segments of the Mainline 200 and 300 natural gas transmission pipelines at the current MAOP, where a change in class location has occurred from an original Class 1 location to a Class 3 location is consistent with pipeline safety. Completed in Washington DC on: APR 1 3 2010 Prepared By: PHMSA - Engineering and Emergency Support - **truncated:** false - **body characters:** 22797