# U.S. DOT/PHMSA - Special Permit Analysis and Findings

- **operation:** document
- **citation:** 0900006480e91db9
- **title:** U.S. DOT/PHMSA - Special Permit Analysis and Findings
- **source type:** rulemaking
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** 1 U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION (PHMSA) Special Permit Analysis and Findings Special Permit Information: Docket Number: Pipeline Operator: Date Requested: Code Section(s): PHMSA-2008-0213 Empire Pipeline, Inc., (operator of Empire State Pipeline) August 8, 2008 49 CFR § 192.61l(a) Purpose: The Pipeline and Hazardous... 5 7) ILl in 2004, with no immediately actionable anomalies found. Empire has met this requirement but will need to run an ILl tool to detect dents and re-run ILl for anomalies and corrosion by September 30, 2011. The criteria for consideration of class location change waiver, now being granted through special permits,...
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**body:**

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U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION (PHMSA)
Special Permit Analysis and Findings
Special Permit Information:
Docket Number:
Pipeline Operator:
Date Requested:
Code Section(s):
PHMSA-2008-0213
Empire Pipeline, Inc., (operator of Empire State Pipeline)
August 8, 2008
49 CFR § 192.61l(a)
Purpose:
The Pipeline and Hazardous Materials Safety Administration (PHMSA) provides this
information to describe the facts of the subject special permit application submitted by Empire
Pipeline, Inc. (Empire), operator ofthe Empire State Pipeline. PHMSA also provides discussion
of any relevant public comments received with respect to the application, presents the
engineering and safety analysis of the special permit application, and makes findings regarding
whether the requested special permit should be granted and if so under what conditions.
Pipeline System Affected:
This special permit request involves five (5) special permit segments along Empire's 24-inch
natural gas transmission pipeline known as the Empire State Pipeline. The five special permit
segments are located in Niagara, Genesee, and Monroe Counties, NY. The class location ofthe
special permit segments have changed from Class 1 Locations to Class 2 Location or a Class 21
Locations to Class 3 Locations.
Niagara, Genesee, and Monroe Counties, NY
1 The Class 3 segments were originally a Class I Location that was upgraded to Class 2 Location by reason of
hydrostatic test in accordance with § 192.611(a).

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This special permit applies to the special permit segments defined using Empire's Survey Station
Numbers. Mileposts are provided for information only.
• Special Permit Segment 1 - 24-inch Empire State Pipeline mainline, approximately 730 feet
in length, located in Genesee County, New York, from Survey Station 3027 + 50 to Survey
Station 3034 + 80; (MP 57.33 to MP 57.49)
• Special Permit Segment 2 - 24-inch Empire State Pipeline mainline, approximately 1,715
feet in length, located in Monroe County, New York, from Survey Station 4018 + 73 to
Survey Station 4035 + 88; (MP 76.09 to MP 76.42)
• Special Permit Segment 3 - 24-inch Empire State Pipeline mainline, approximately 1,650
feet in length, located in Monroe County, New York, from Survey Station 4483 + 10 to
Survey Station 4499 + 60; (MP 84.88 to MP 85.19)
• Special Permit Segment 4 - 24-inch Empire State Pipeline mainline, approximately 2,675
feet in length, located in Niagara County, New York, from Survey Station 1230 + 69 to
Survey Station 1257 + 44; (MP 23.30 to MP 23.81)
• Special Permit Segment 5, 24-inch Empire State Pipeline mainline, approximately, 1,760
feet in length, located in Niagara County, New York, from Survey Station 1330 + 50 to
Survey Station 1348 + 10; (MP 25.19 to MP 25.54)
Niagara, Genesee, Monroe, Ontario, Wayne, Cayuga, Onondaga and Oswego Counties, NY
Special permit inspection area - means the area that extends 220 yards on each side of the
centerline of 24" mainline along the entire length ofthe Empire State Pipeline from Mile Post 0
(NY/Canada Border) to Mile Post 157 (Phoenix, NY). The special permit inspection area is
located in Niagara, Genesee, Monroe, Ontario, Wayne, Cayuga, Onondaga and Oswego
Counties, NY. The total length of the special permit inspection area is approximately 157 miles.
The Empire State Pipeline special permit inspection area includes the following sections:
• Western Section - from Mile Post 0 in Niagara County, New York to Mile Post 90.8 in
Ontario County, New York and the pipeline has an MAOP of 1440 pounds per square
inch gauge (psig); and
• Eastern Section - from Mile Post 90.8 in Ontario County, New York to Mile Post 157 in
Oswego County, New York and the pipeline has an MAOP of 1000 psig.

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Special Permit Request
Empire submitted an application to PHMSA on August 8, 2008, for a special permit seeking
relief from the Federal pipeline safety regulations in 49 CFR § 192.611(a) for five (5) segments
of the Empire State Pipeline where a change has occurred from a Class 1 or 2 to Class 3
Locations. As requested, this special permit would allow Empire to continue to operate the
pipeline segments at their current maximum allowable operating pressure (MAOP) of 1440 psig
in the Western Section and 1000 psig in the Eastern Section. The Federal pipeline safety
regulations in 49 CFR § 192.611(a) 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
Empire to continue to operate each of the five (5) special permit segments at their existing
MAOP's despite a change in class location.
In its application, Empire suggested that the five (5) special permit segments be included in one
separate special permit inspection area (see Empire's applicat,ion for the specific details). The
special permit inspection area on the Empire State Pipeline will begin approximately 23.3 miles
upstream of the beginning of the special permit segment 1 extend through the five special permit
segments and end approximately 71.8 miles downstream of the ending of special permit
segment 5, The total length of the special permit inspection area is approximately 157 miles.
Public Notice:
On January 23,2009, PHMSA posted a notice of this special permit request in the Federal
Register (74 FR 4297). The request letter, Federal Register notice and all related documents are
available for review in Docket No. PHMSA-2008-0213 in the Federal Docket Management
System (FDMS) located on the internet at www.Regulations.gov.
PHMSA did not receive any public comments on this special permit request.
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

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process of the pipe; system design and construction; environmental, operating and maintenance
histories; and integrity management program elements are evaluated as significant criteria.
These significant criteria are presented in matrix form and can be reviewed in the FDMS, Docket
Number PHMSA-2004-1740I. Third, such special permits may only then be granted when pipe
conditions and active integrity management provide a level of safety greater than or equal to a
pipe replacement or pressure reduction.
Threshold Requirements: Each of the threshold requirements published by PHMSA in the
June 29, 2004, FR notice is discussed below in regards to the Empire 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 five segments of Empire's Empire State Pipeline where a
class location change has occurred from Class 1 Location to Class 3 Location or Class 2
Location to Class 3 Location. Empire has met this requirement.
2) No bare pipe will be considered. The Empire special permit segments are coated with fusion
bonded epoxy (FBE) coating. Empire has met this requirement.
3) No pipe containing wrinkle bends will be considered. There are no wrinkle bends in this
special permit segment. Empire Pipeline has met this requirement.
4) No pipe segments operating above 72% of the specified minimum yield strength (SMYS)
will be considered for a Class 3 special permit. This special permit segment operates at or
below 72 percent SMYS. Empire has met this requirement.
5) Records must be produced that show a hydrostatic test to at least 1.25 x MAOP for class
location change from Class 1 or Class 2 to Class 3 Location and 90 percent of SMYS for
class location change from Class 1 to Class 3 Location. Empire Pipeline records submitted
show that the Class 1 pipe (0.343") of the 24-inch Empire State Pipeline existing within the
special permit segments, has been hydrostatically tested to a minimum of 1,808 psig, which
is 1.25 x MAOP and 90% of SMYS for class location change from Class 1 to Class 3
Location. Pipe used in Class 1 Locations for tie-ins and road crossings is heavier wall pipe
(0.4 1 2-inch and 0.494-inch), but has been tested to the same pressure as the 0.343-inch wall
pipe. Empire has met these requirements.
6) In-line inspection (ILl) must have been performed with no significant anomalies identified
that indicate systemic problems. The proposed special permit segment was last inspected by

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7) ILl in 2004, with no immediately actionable anomalies found. Empire has met this
requirement but will need to run an ILl tool to detect dents and re-run ILl for anomalies and
corrosion by September 30, 2011.
The criteria for consideration of class location change waiver, now being granted through
special permits, 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 area must be inspected according to Empire's integrity management program and
periodically inspected with an in-line inspection technique. The portion of the special permit
inspection area is approximately 157 miles long which is the entire length of the Empire
State Pipeline. The special permit inspection area transverses from Mile Post 0 (NY/Canada
border) to Mile Post 157 (Phoenix, NY) through Niagara, Genesee, Monroe, Ontario, Wayne,
Cayuga, Onondaga and Oswego Counties, NY. From Mile Post 0 to 90.8 (western portion)
in Niagara, Genesee, Monroe, and Ontario, NY, the Empire State Pipeline has a MAOP of
1,440 PSIG. From Mile Post 90.8 to Mile Post 157 (eastern portion) in Ontario, Wayne,
Cayuga, Onondaga and Oswego Counties, NY, the Empire State Pipeline has a MAOP of
1,000 PSIG. This special permit will require Empire to incorporate each of the five special
permit segments into its written integrity management program as "covered segment" in a
"high consequence area" (HCA) per 49 CFR § 192.903.
The special permit segments meet the threshold requirements; however additional ILl tool runs
will be necessary to ensure safety and therefore will be required by the special permit conditions.
Criteria Matrix: The original and supplemental data submitted by Empire for the special permit
segments have been compared to the class location change special permit criteria matrix. The
data fall within the probable acceptance column of the criteria matrix for all criteria except
submittal of material test reports with charpy-impact toughness and performing internal line
inspections within one-year after issuance of the special permit.
• The five special permit segments fall in the probable acceptance column of the criteria
matrix for all criteria except for:
o Possible acceptance - ILl time frame - Special permit conditions will require ILL

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o Requires substantial justification - none
PHMSA has determined that imposing the special permit with conditions will provide a level of
safety greater than or equal to pipe replacement or pressure reduction for this area.
Operational Integrity Compliance: PHMSA reviewed this special permit request to ensure that
integrity threats to the pipeline in the special permit segment and special permit area are
addressed in the operator's operations and management plan (O&M Plan) to provide a
systematic program to review and remediate the pipeline for safety concerns. PHMSA will
require additional operational integrity review and remediation requirements through the special
permit. The pipeline operational integrity requirements are to ensure that the operator has an
ongoing program to locate and remediate safety threats. These threats to integrity and safety
include 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 Empire will be required to meet under the special permit. 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 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 required to be remediated.
• Stress corrosion cracking (SCC) surveys on the pipeline will be required to ensure that
the pipe steel does not contain cracks due to the effects of high and near neutral pH SCC.
• 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 inspection areas must be identified, controlled and mitigated by
conducting surveys and installing grounding systems where required.

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• An analysis of pipeline field coated girth welds that could have shielding coatings that
could cause corrosion ofthe pipe steel must be undertaken in the special permit segments
and in-line inspection logs that indicate 30% corrosion indications on shielding or
unknown coatings must be exposed and evaluated.
• Anomalies and dents in the pipeline must be repaired, based upon the special permit
repair criteria.
• Girth welds in the special permit segments must have been inspected to a non destructive
test plan during construction, or a quality review and remediation program must be
implemented by the pipeline operator.
• All shorted casing at road crossings and railroad crossings in the special permit segments
(either metallic or electrolytic) must be cleared to prevent corrosion.
• Pipeline longitudinal seams within the 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 at
the applicable reassessment intervals.
• In-line tool (ILl) inspections must be conducted through the five special permit segments
and special permit inspection area by September 30, 2011 of the date of issuance of this
special permit and remediate any findings in accordance with the 49 CFR Part 192,
Subpart 0; § 192.485; and the conditions of this special permit. Empire must also
remediate within nine (9) months of grant of this special permit all anomalies or dents
that does not meet Condition 20 of the Special permit based upon existing ILl results
from high resolution MFL and caliper/geometry tools ran in August and September,
2004.
PHMSA has determined that imposing these conditions (along with the remainder of the
conditions set forth in the special permit) will ensure that granting the special permit will not be
inconsistent with pipeline safety.
Past Enforcement History - 2000 through 2009:

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A review of PHMSA enforcement actions against Empire from 2000 through 2009 shows the
following enforcement actions against the companies. The enforcement actions place Empire in
the "possible acceptance category" for a special permit grant. Empire Pipeline, Inc. is owned by
the National Fuel Gas Company. Company assets are distributed among the following 4
business segments: Empire Pipeline, Inc. OPID #31592 National Fuel Gas Distribution
Corporation OPID #13061 (PA) & 13062 (NY), National Fuel Gas Supply Corporation OPID
#13063, and Seneca Resources Corporation OPID #18201.
Below is a listing of the Empire State Pipeline enforcement matters of all types in all PHMSA
Regions:
• Eastern Region - 1 matter
• Notice of Probable Violation's (NOPV) - 0
• States where violations have occurred: New York
Empire State Pipeline's regulatory enforcement history from 2000 to 2009 indicates one non-
compliance issue as shown above with 49 CFR 192 and no outstanding corrective action orders
(CAO). The single enforcement item that includes 9 notices of amendment was issued in 2005
in the course of a Part 192, Subpart 0, Integrity Management Plan inspection with the National
Fuel Gas Company which covered the National Fuel Gas Distribution Corporation, the National
Fuel Gas Supply Corporation and Empire Pipeline, Inc.
Based upon Empire State Pipeline's compliance history, PHMSA concludes that Empire State
Pipeline's compliance history will not require additional assurances to ensure full compliance
with the Special Permit conditions.
PHMSA has determined that imposing the special permit conditions will ensure that granting the
special permit will not be inconsistent with pipeline safety.
Findings:
Based on the information submitted by Empire and PHMSA's analysis of the technical,
operational, and safety issues, and given the additional measures required and conditions that
will be imposed, PHMSA finds that granting this special permit to Empire to operate five (5)

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segments of the Empire State Pipeline, a natural gas transmission pipeline, at the current MAOP
where a change in class location has occurred from a Class 1 location to a Class 3 location is
consistent with pipeline safety.
Completed in Washington DC on: ------'U..,.."lf---31)-:I-I,eh 2 nlJl-l1tBfJ------
Prepared By: PHMSA - Engineering and Emergency Support
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