{"operation":"document","citation":"16 TAC § 8.209","title":"Distribution Facilities Replacements","source_type":"regulation","agency":"Railroad Commission of Texas","status":"current","official":true,"published_on":null,"effective_on":"2024-12-09","summary":"(a) Unless exempted by 49 CFR §192.1003(b), this section applies to each operator of a gas distribution system that is subject to the requirements of 49 CFR Part 192. This section prescribes the minimum requirements by which all operators will develop and implement a risk-based program for the remov","machine_formats":{"json":"https://regulus.evalyn.ai/document/tx-tac-16-8-209.json","markdown":"https://regulus.evalyn.ai/document/tx-tac-16-8-209.md"},"app_url":"https://regulus.evalyn.ai/document/tx-tac-16-8-209","source_url":"https://texas-sos.appianportalsgov.com/rules-and-meetings?chapter=8&interface=VIEW_TAC&part=1&title=16","body":"(a) Unless exempted by 49 CFR §192.1003(b), this section\napplies to each operator of a gas distribution system that is\nsubject to the requirements of 49 CFR Part 192. This section\nprescribes the minimum requirements by which all operators\nwill develop and implement a risk-based program for the\nremoval or replacement of distribution facilities, including\nsteel service lines, in such gas distribution systems. The risk-\nbased program will work in conjunction with the Distribution\nIntegrity Management Program (DIMP) using scheduled\nreplacements to manage identified risks associated with the\nintegrity of distribution facilities.\n(b) Each operator must make joints on below-ground\npiping that meets the following requirements:\n(1) Joints on steel pipe must be welded or designed and\ninstalled to resist longitudinal pullout or thrust forces per 49\nCFR §192.273.\n(2) Joints on plastic pipe must be fused or designed and\ninstalled to resist longitudinal pullout or thrust forces per\nASTM D2513-Category 1.\n(c) Each operator must establish written procedures for\nimplementing the requirements of this section. Each operator\nmust develop a risk-based program to determine the relative\nrisks and their associated consequences within each pipeline\nsystem or segment. Each operator that determines that steel\nservice lines are the greatest risk must conduct the steel\nservice line leak repair analysis set forth in subsection (d) of\nthis section and use the prescriptive model in subsection (f)\nof this section for the replacement of those steel service\nlines.\n(d) In developing its risk-based program, each operator\nmust develop a risk analysis using data collected under its\nDIMP and the data submitted on the PS-95 to determine the\nrisks associated with each of the operator's distribution\nsystems and establish its own risk ranking for pipeline\nsegments and facilities to determine a prioritized schedule\nfor service line or facility replacement. The operator must\nsupport the analysis with data, collected to validate system\nintegrity, that allow for the identification of segments or\nfacilities within the system that have the highest relative risk\nranking or consequence in the event of a failure. The\noperator must identify in its risk-based program the\ndistribution piping, by segment, that poses the greatest risk to\nthe operation of the system. In addition, each operator that\ndetermines that steel service lines are the greatest risk must\nconduct a steel service line leak repair analysis to determine\nthe leak repair rate for steel service lines. The leak repair rate\nfor below-ground steel service lines is determined by\ndividing the annualized number of below-ground leaks\nrepaired on steel service lines (excluding third-party leaks\nand leaks on steel service lines removed or replaced under\nthis section) by the total number of steel service lines as\nreported on PHMSA Form F 7100.1-1, the Gas Distribution\nSystem Annual Report. Each operator that determines that\nsteel service lines are the greatest risk must conduct the steel\nservice line leak repair analysis using the most recent three\ncalendar years of data reported to the Commission on Form\nPS-95.\n(e) Each operator must create a risk model that will\nidentify by segment those lines that pose the highest risk\nranking or consequence of failure. The determination of risk\nis based on the degree of hazard associated with the risk\nfactors assigned to the pipeline segments or facilities within\neach of the operator's distribution systems. The priority of\n\nservice line or facility replacement is determined by\nclassifying each pipeline segment or facility based on its\ndegree of hazard associated with each risk factor. Each\noperator must establish its own risk ranking for pipeline\nsegments or facilities to determine the priority for necessary\nservice line or facility replacements. Each operator should\ninclude the following factors in developing its risk analysis:\n(1) pipe location, including proximity to buildings or\nother structures and the type and use of the buildings and\nproximity to areas of concentrations of people;\n(2) composition and nature of the piping system,\nincluding the age of the pipe, materials, type of facilities,\noperating pressures, leak history records, prior leak grade\nrepairs, and other studies;\n(3) corrosion history of the pipeline, including known\nareas of significant corrosion or areas where corrosive\nenvironments are known to exist, cased crossings of roads,\nhighways, railroads, or other similar locations where there is\nsusceptibility to unique corrosive conditions;\n(4) environmental factors that affect gas migration,\nincluding conditions that could increase the potential for\nleakage or cause leaking gas to migrate to an area where it\ncould create a hazard, such as extreme weather conditions or\nevents (significant amounts or extended periods of rainfall,\nextended periods of drought, unusual or prolonged freezing\nweather, hurricanes, etc.); particular soil conditions; unstable\nsoil; or areas subject to earth movement, subsidence, or\nextensive growth of tree roots around pipeline facilities that\ncan exert substantial longitudinal force on the pipe and\nnearby joints; and\n(5) any other condition known to the operator that has\nsignificant potential to initiate a leak or to permit leaking gas\nto migrate to an area where it could result in a hazard,\nincluding construction activity near the pipeline, wall-to-wall\npavement, trenchless excavation activities (e.g., boring),\nblasting, large earth-moving equipment, heavy traffic,\nincrease in operating pressure, and other similar activities or\nconditions.\n(f) This subsection applies to operators that determine\nunder subsection (c) of this section that steel service lines are\nthe greatest risk. Based on the results of the steel service line\nleak repair analysis under subsection (d) of this section, each\noperator must categorize each segment and complete the\nremoval and replacement of steel service lines by segment\naccording to the risk ranking established pursuant to\nsubsection (e) of this section as follows:\n(1) a segment with an annualized steel service line leak\nrate of 5% or greater but less than 7.5% is a Priority 1\nsegment and an operator must remove or replace no less than\n10% of the original inventory per year; and\n(2) a segment with an annualized steel service line leak\nrate of less than 5% is a Priority 2 segment. An operator is\nnot required to remove or replace any Priority 2 segments;\nhowever, upon discovery of a leak on a Priority 2 segment,\nthe operator must remove or replace rather than repair those\nlines except as outlined in subsection (g) of this section.\n(g) For those steel service lines that must remain in service\nbecause of specific operational conditions or requirements,\neach operator must determine if an integrity risk exists on the\nsegment, and if so, must replace the segment with steel as\npart of the integrity management plan.\n(h) All replacement programs require a minimum annual\nreplacement of 8% of the pipeline segments or facilities\nposing the greatest risk in the system and identified for\nreplacement pursuant to this section. Each operator with steel\n\nservice lines subject to subsection (f) of this section must\nestablish a schedule for the replacement of steel service lines\nor other distribution facilities according to the risk ranking\nestablished as part of the operator's risk-based program and\nmust submit the schedule to the Division for review and\napproval or amendment under subsection (c) of this section.\n(i) In conjunction with the filing of the pipeline safety and\nregulatory program fee pursuant to §8.201 of this title\n(relating to Pipeline Safety and Regulatory Program Fees)\nand no later than March 15 of each year, each operator must\nfile with the Division:\n(1) by System ID, a list of the steel service line or other\ndistribution facilities replaced during the prior calendar year;\nand\n(2) the operator's proposed work plan for removal or\nreplacement for the current calendar year, the\nimplementation of which is subject to review and\namendment by the Division. Each operator must notify the\nDivision of any revisions to the proposed work plan and, if\nrequested, provide justification for such revision. Within 45\ndays after receipt of an operator's proposed revisions to its\nrisk-based plan and work plan, the Division will notify the\noperator either of the acceptance of the risk-based program\nand work plan or of the necessary modifications to the risk-\nbased program and work plan.\n(j) Each operator of a gas distribution system that is subject\nto the requirements of §7.310 of this title (relating to System\nof Accounts) may use the provisions of this subsection to\naccount for the investment and expense incurred by the\noperator to comply with the requirements of this section.\n(1) The operator may:\n(A) establish one or more designated regulatory asset\naccounts in which to record any expenses incurred by the\noperator in connection with acquisition, installation, or\noperation (including related depreciation) of facilities that\nare subject to the requirements of this section;\n(B) record in one or more designated plant accounts\ncapital costs incurred by the operator for the installation of\nfacilities that are subject to the requirements of this section;\n(C) record interest on the balance in the designated\ndistribution facility replacement accounts using a monthly\ninterest rate equal to one-twelfth of the pretax weighted\naverage cost of capital last approved for the utility by the\nCommission;\n(D) reduce balances in the designated distribution\nfacility replacement accounts by the amounts that are\nincluded in and recovered though rates established in a\nsubsequent Statement of Intent filing or other rate adjustment\nmechanism; and\n(E) use the presumption set forth in §7.503 of this title\n(relating to Evidentiary Treatment of Uncontroverted Books\nand Records of Gas Utilities) with respect to investment and\nexpense incurred by a gas utility for distribution facilities\nreplacement made pursuant to this section.\n(2) This subsection does not render any final\ndetermination of the reasonableness or necessity of any\ninvestment or expense.\n(k) A distribution gas pipeline facility operator shall not\ninstall as a part of the operator's underground system a cast\niron, wrought iron, or bare steel pipeline. A distribution gas\npipeline facility operator shall replace any known cast iron\npipelines installed as part of the operator's underground\nsystem not later than December 31, 2021.","truncated":false,"body_characters":10546}