DEPARTMENT OF TRANSPORTATION

RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION

49 CFR Part 195

[Docket No. PS–117; Notice 1]

RIN 2137–AB 86

Transportation of a Hazardous Liquid in Pipelines Operating at 20
Percent or Less of Specified Minimum Yield Strength.

agency:  Research and Special Programs Administration, DOT.

action:		 Advance notice of proposed rulemaking.

summary: By exception (49 CFR 195.1(b)(3), the Federal pipeline safety
standards governing hazardous liquid pipelines do not apply to pipelines
operated at 20 percent or less of the specified minimum yield strength
(SMYS) of the pipe.  In this Advance Notice of Proposed Rulemaking
(ANPRM), the Research and Special Programs Administration (RSPA) is
soliciting comments and information for evaluation in determining
whether and to what extent to remove the exception from the regulations.
 The other exceptions in §195.1(b) would not be affected.  RSPA expects
that this rulemaking will determine whether the application of the
pipeline safety regulations to such pipelines would assure public safety
and environmental protection by minimizing the possibility of accidents.

dates:  Comments must be received by December 31, 1990.  Late filed
comments will be considered to the extent practicable.

addresses:  Send comments in duplicate to the Dockets Unit, Room 8417,
Office of Pipeline Safety, Research and Special Programs Administration,
U.S. Department of Transportation, 400 Seventh Street, SW., Washington,
DC 20590.  Identify the docket and notice number stated in the heading
of this notice.  All comments and other docketed material will be
available for inspection and copying in Room 8419 between the hours of
8:30 a.m. and 5 p.m. each working day.

for further information contact:  G. Joseph Wolf, (202) 366–4560,
regarding the subject matter of this ANPRM or to request a copy of the
ANPRM questionnaire in 8( x 11 inch format.  Contact the Dockets Unit
(202) 366–4453, for copies of the ANPRM or other docket material. 
Contact the Transportation Safety Institute, Pipeline Safety Division,
6500 South MacArthur Boulevard, Oklahoma City, OK 73123, (405) 680-4643,
for a copy of 49 CFR part 195.

supplementary information:  

Background

	When the Federal pipeline safety regulations applicable to
transportation of hazardous liquids by pipeline (49 CFR part 195) were
issued in 1969, pipelines operated at 20 percent or less of SMYS were
excepted from the regulations because these pipelines were thought to
pose no unreasonable risk to public safety on the basis of their low
operating stress.  Since then, however, accidents that have occurred on
low stress level pipelines provide reasons to reconsider the exception. 
One recent failure of such a pipeline, described later in this notice,
resulted in extensive harm to the environment.  Accordingly, RSPA is
re-evaluating the need to regulate these pipelines.

Recommendations to DOT

	In a resolution sent to RSPA on August 4, 1988, the National
Association of Pipeline Safety Representatives (NAPSR), an association
of state representatives participating in the cooperative Federal/State
pipeline safety program, proposed that Part 195 be amended to remove the
exception for hazardous liquid pipelines operating at 20 percent or less
of SMYS.  NAPSR based its resolution on an interstate petroleum products
pipeline in Iowa and Nebraska that leaked and was found to be in poor
condition.  The pipeline right of way included a crossing of the
Missouri River.  Because it operated at less than 20 percent SMYS, it
was not subject to Part 195.  The State environmental agency required
the operator to develop a plan to assure timely recovery and cleanup.

	On October 17, 1988, RSPA accepted the NAPSR recommendation.  RSPA
further stated that the subject would be addressed by a DOT Safety
Review Task Force (Task Force) which was nearing the end of an in-depth
review of the pipeline safety program.  The Task Force had been
established by the Secretary of Transportation to review the adequacy of
all of the safety programs of the Department.  RSPA stated that the Task
Force was expected to complete its report later that year and that RSPA
would await the Task Force report before proceeding with a rulemaking.  

	On January 12, 1989, the Task Force presented its report.  The Task
Force stated that many pipeline accidents have little or nothing to do
with the relative strength of the pipe, and that many accidents result
from third party damage and corrosion.  The report included the
recommendation that:

	RSPA should reassess the blanket exemption from safety regulations for
hazardous liquid pipelines that operate at less than 20 percent of their
specified minimum yield strength and should initiate rulemaking to
revoke the exemption in whole or in part.

	On February 10, 1989, RSPA accepted the Task Force recommendation and
indicated that a basis for rulemaking would be established by developing
information through a technical study and an Advance Notice of Proposed
Rulemaking (ANPRM).  RSPA determined that it has insufficient
information to conduct a Technical Study and proceeded with this ANPRM
in order to gather comments and information.

Pipeline Accident

	On January 1, 1990, an incident occurred which strongly supports the
need to obtain data regarding hazardous liquid pipelines operating at or
less than 20 percent SMYS.  A 12-inch diameter, 6.7 mile pipeline
between New Jersey and Staten Island, N.Y. spilled over 500,000 gallons
of fuel oil into the Arthur Kill waterway.  The Arthur Kill and its
connecting waterways traverse both densely industrialized and wildlife
areas.  The spill resulted in environmental damage of millions of
dollars.  According to a report by Battelle dated April 20, 1990, an
underwater leak in the pipeline resulted from fatigue cracking
subsequent to outside force damage which occurred possibly months or
even years earlier.

	One control on the pipeline was a negative deviation leak detection
system.  Leak detection was based on comparing volume flowing past both
ends of the pipeline.  When the volume delivered during a preset time
interval was less than the volume shipped by more than a pre-set amount,
a negative deviation signal automatically operated an alarm and began to
shut down the pipeline.  Prior to the leak, pipeline personnel had been
responding to repeated false negative deviation alarms by resetting the
system’s automatic shut down device.  When the system began to shut
down the pipeline at the time of the leak, pipeline personnel reset it. 
As a result, oil was pumped through the leaking pipeline for about six
hours before it was shut down.

	Because it was operated at less than 20 percent of SMYS, the pipeline
under the Arthur Kill was not subject to the hazardous liquid pipeline
regulations or to periodic oversight by Federal pipeline inspectors for
compliance with those regulations.  Had the pipeline been subject to the
equipment and operating procedure requirements of the Federal
regulations, the spill might have been minimized.

Congressional Action

	Legislation has been introduced in Congress which specifically would
require that pipelines operating at 20 percent or less of SMYS be
subject to the regulations (See Congressional Record of March 22, 1990,
pages 3099–3101, which reports the introduction of bills cosponsored
by New Jersey Senators Lautenberg and Bradley).  Among its provisions,
the proposed legislation would permit exemptions on a case-by-case
basis; however, it would require that the owner or operator of the
exempted pipeline annually certify continuing compliance with the
conditions under which the exemption was granted.

National Transportation Policy

	Consideration of this rulemaking is consistent with the elements of the
National Transportation Policy that seek to ensure the integrity of the
nation’s transportation infrastructure, public safety, and
environmental protection.

Current Requirements

	Section 195.1(b)(3) states that part 195 does not apply to
“Transportation of a hazardous liquid through pipelines that operate
at a stress level of 20 percent or less of the specified minimum yield
strength of the line pipe;”.  For clarification, the pipelines
excepted are those in which the stress does not exceed 20 percent SMYS
at any point along the length of the pipeline.  The other current
exceptions to regulation would remain in effect if RSPA publishes a rule
change.

	It should be noted that §195.8 states that “No person may transport
any hazardous liquid through a pipe that is constructed after October 1,
1970, of material other than steel *  *  *”.  The section also
contains provisions for notification to the Secretary of the intention
to use a pipeline constructed of pipe material other than steel and for
the Secretary to make a determination regarding the hazard of using the
proposed pipe material for the specific application proposed.  However,
this ANPRM addresses only pipelines constructed of steel pipe and
operated at 20 percent or less of SMYS.

Discussion

	Most hazardous liquid pipelines are operated at a pressure creating a
stress in excess of 20 percent of SMYS of the pipe because it is not
economical to construct and operate pipelines to operate at a low
stress.  To maximize economy, many pipelines are operated at the maximum
pressure permitted by part 195, which is equivalent to 72 percent SMYS.

	Some pipelines are operated at 20 percent or less of SMYS for varying
reasons.  RSPA is unable to estimate the number of these pipelines. 
However, RSPA believes that such pipelines typically move hazardous
liquids to or from petrochemical complexes such as refineries,
manufacturing plants, and hazardous liquid terminals, and that these
pipelines are relatively short.  Low stress operation is adequate to
move the liquid to or from the complex at the rate required for
operation.  The operators of petrochemical complexes usually do not
operate other pipelines subject to part 195, and therefore may not be
familiar with its requirements.  Piping within petrochemical complexes
is not regulated under 49 CFR part 195 and is not the subject of this
ANPRM.

	Many gathering lines in non-rural areas are operated at 20 percent or
less of SMYS.  As set forth in §195.1, gathering lines in nonrural
areas are subject to part 195, while gathering lines in rural areas are
not subject to those rules.

	Also, RSPA believes that there may be a limited number of pipelines
that transport hazardous liquids for long distances at pressures
equivalent to 20 percent or less of SMYS.  RSPA believes that these
pipelines are operated at low stress typically because they are old and
potentially in poor condition.

	Regardless of the stress at which they are operated, pipelines are
vulnerable to damage from the two principal causes of pipeline
failure—excavation (outside force) and corrosion.  Admittedly,
pipelines which are operated at lower stresses may survive damage from
excavation and corrosion for a longer period before failure than will
high stress pipelines, but the risk of failure is present nevertheless.

	RSPA is considering the modification or deletion of §195.1(b)(3), so
that some or all hazardous liquid pipelines operated at 20 percent or
less of SMYS would no longer be excepted from regulation under part 195.
 As stated above, this ANPRM is only applicable to the construction and
operation of pipelines made of steel pipe because the use of other
material is permitted only upon notice to the Secretary and upon review
of the details of the notice by the Secretary.

	If a rulemaking is proposed that applies part 195 to pipelines
operating at 20 percent or less of SMYS, existing pipelines would be
subject to all subparts of part 195 except Subpart C—Design
Requirements, and Subpart D—Construction.  Although the requirements
of Subpat [sic] E—Hydrostatic Testing currently would not apply to
non-HVL pipelines constructed before dates specified in the regulations,
the issuance of a rule presently being considered would require the
hydrostatic testing of those pipelines or, alternativley [sic], a
restriction of their operating pressure.  All sections of part 195 would
apply to pipelines constructed after publication of a regulation.  Any
rulemaking resulting from this ANPRM would not apply to hazardous liquid
pipelines presently excepted by the other subparagraphs of §195.1(b).

Information Acquisition

	Because pipelines operated at 20 percent or less of SMYS have been
excepted from Federal regulation (§195.1(b)(3)), owners and operators
are excepted from filing reports with RSPA.  Consequently, RSPA [L]acks
specific information about such pipelines.  Therefore, this notice
contains a questionnaire for the purpose of gathering information to
make a decision regarding rulemaking.  The owners or operators of
hazardous liquid pipelines (1) operated at 20 percent or less of SMYS
and (2) not otherwise excepted under §195.1(b) are requested to
complete the questionnaire for each such pipeline and return it by
December 31, 1990.  RSPA needs the information requested in the
questionnaire to estimate the extent of low stress pipelines, to perform
a cost/benefit analysis, and to develop and consider alternatives that
would ensure the safe operation of low stress pipelines.

	It is important that all owners or operators of pipelines potentially
affected by such a rulemaking respond to the extent possible so that
RSPA is aware of the impact of the change being considered.  Partially
completed questionnaires will have value.  It is especially important
that owners and operators respond to question 1.  Pipeline owners and
operators and other interested and affected parties are invited to
comment on the subject of this ANPRM.  In addition, state and local
governments are invited to provide information as may be available to
them about pipelines operated at 20 percent or less of SMYS that are
located within their jurisdictions.

Definitions

	For the purpose of responding to the questionnaire, the following
definitions are provided:

	Accident means a failure in a pipeline system for which a report is
required in accordance with §195.50.

	Environmentally sensitive area means any onshore area where a loss of
hazardous liquid could reasonably be expected to pollute any water
crossing that is more than 100 feet wide from high water mark to high
water mark, any reservoir holding water for human consumption, and any
offshore area.

	Hazardous liquid means petroleum, petroleum products, or anhydrous
ammonia.

	Highly volatile liquid or HVL means a hazardous liquid which will form
a vapor cloud when released to the atmosphere and which has a vapor
pressure exceeding 276 kpa (40 psia) at 37.8(C (100(F).

	Limit of operating Pressure or LOP means the normal maximum limit of
internal pressure in the pipeline during operation except for surges and
other variations from normal operations.  To qualify as a pipeline
operated at 20 percent or less of SMYS, the LOP cannot be greater than a
pressure equivalent to 20 percent of SMYS.   [sic] Major spill means a
release from the pipeline of 500 or more barrels of liquid; an escape to
the atmosphere of 50 or more barrels per day of highly volatile liquid;
the death of a person; or property damage to the property of the
operator or others, or both, exceeding $50,000.

	Navigable waterways means those waters that have been determined to be
navigable waterways by the United States Coast Guard (USCG).  A list of
navigable waterways is available at the appropriate USCG District
Office.

	Pipeline means all parts of a pipeline facility through which a
hazardous liquid moves in transportation, including, but not limited to,
line pipe, valves and other appurtenances connected to line pipe,
pumping units, fabricated assemblies associated with pumping units,
metering and delivery stations and fabricated assemblies therein, and
breakout tanks.

	Populated area means any area other than a rural area.

	Rural area means outside the limits of any incorporated or
unincorporated city, town, village, or any any [sic] other designated
residential or commercial area such as a subdivision, a business or
shopping center, or community development.

Questionnaire

	Pipelines transporting petroleum, petroleum products, or anhydrous
ammonia are regulated under 49 CFR part 195, Transportation of Hazardous
Liquids by Pipeline.  The owners or operators of hazardous liquid
pipelines (1) operated at 20 percent or less of SMYS and (2) not
otherwise excepted under §195.1(b) are requested to complete the
questionnaire for each such pipeline and return it by December 31, 1990.
 A copy of the questionnaire in 8( x 11 inch format may be requested
from G. Joseph Wolf (202) 366–4560).

	Complete a separate questionnaire for each pipeline reported.  This
questionnaire is only applicable to the operation of pipelines made of
steel pipe.  Pipelines to be reported include all hazardous liquid
pipelines operating at 20 percent or less of SMYS throughout the entire
length of the separate pipeline including gathering lines in non-rural
areas and pipelines between plants at petrochemical complexes, but
excluding piping within a single plant property.  It is important that
all owners or operators of such pipelines respond to the extent possible
so that RSPA is aware of the impact of a change being considered. 
Partially completed questionnaires will have value.  It is especially
important that owners and operators respond to question 1.

	See the ANPRM for definitions of terms used in this questionnaire.

	1.	Pipeline Identification and Description

	a.	Name or number (Provide the name or number by which the pipeline is
commonly identified in company records.)

	b.	Is this pipeline presently operated under 49 CFR Part 195? Yes___ No
___

	c.	Length__________ miles.

	d.	Volume of each liquid transported (bbl/year):

	1987	1988	1989

Non-HVL		

HVL			

Anhydrous ammonia	

		

	

			

	

			

	

	



	e.	Steel Pipe Type (Method of Manufacture):

Electric	              resistance 	          weld

________________________________

Other (specify) ____________________

Unknown ________________________

	f.	Date(s) of installation

_____________________

	2.	Limit of Operating Pressure (LOP)

	a.	LOP is: ________ psig: ________ Percent SMYS.

	b.	Indicate the method on which LOP is based.  If LOP is not based on
one of the four listed alternatives, describe the method in comments
attached to the questionnaire.

—Calculated internal design pressure with a safety factor of 0._______
times SMYS.

—________ percent of the test pressure for any part of the pipeline
which has been hydrostatically tested.

—________ The design or test pressure of a pipeline component.

—________ The documented highest operating pressure of the pipeline.

	3.	Testing

	If this pipeline has been hydrostatically tested, list the date it was
tested: ________.  List the minimum value of test pressure divided by
LOP at any point in the pipeline: test pressure ÷ LOP X 100 = ________
percent.

	4.	Performance

	a.	Tabulate estimated average annual costs of accidents which have
occurred in the years 1986 through 1990.

Cost of repair or replacement	

Cost of product lost	

Costs attributed to loss of use of the pipeline	

Cost of damage to property other than the pipeline	

Cost of bodily harm and/or loss of life	

	Loss of life valued at $1,500,000.	

	Bodily harm reportable per §195.50(e) valued at $450,000.	

Cost of environmental clean-up, whether or not paid by the operator	

Estimated cost of damage to the environment, exclusive or clean-up	

Cost of litigation	

Other costs	

         Total costs			

	

	

	

	

	

	

	

	

	

	

 _______

	



	b.	List and identify by date incidents that resulted in a major spill. 
Estimate costs on the same basis as in Question 4.a.  If more than two
major spills have occurred, list on an attachment to the questionnaire.

Date	Barrels

spilled	Cause	Total

cost



	

	

	

	

	

	

	

	

	

	

	





	5. 	Risk Exposure

	a.	Indicate, in miles, what portion of the pipeline is located:

—within 220 yards of populated areas.________miles

—under or over a navigable waterway.________miles

—within an environmentally sensitive area.________miles

	6.	Cost of compliance

	a.	Estimate the one-time costs that must be incurred to bring the
pipeline into compliance with the requirements of Part 195.

Review, design and planning	

Materials and construction	

Documentation and paperwork	

Operational and maintenance training	

Other (specify)	

	

         Total 	

	$

	

	

	

	

 _______

	

	

b.	Estimate the continuing additional annual costs necessary to operate
the pipeline in compliance with 49 CFR Part 195.

Operational expense	

Maintenance expense	

Operational and maintenance training	

Documentation and Paperwork	

Other (specify)	

         Total 	

	$

	

	

	

	

 _______

	



	7.	Small Business

	a.	Is the operator a small business according to the guidelines of the
Small Business Administration?

	Yes———— No ____  If yes, answer b, and c.

	b.	Furnish the pipeline’s number of employees: ________

	c.	Furnish the pipeline’s total revenue for the years:

	1987 ________ 1988 ________

1989 ________

	Issued in Washington, DC on October 26, 1990.

George W. Tenley, Jr.,

Associate Administrator for Pipeline Safety.

[FR Doc. 90–25729 Filed 10–30–90; 8:45 am]

PS-117, ANPRM, #1

 PAGE   4 

Federal Register / Vol. 55, No. 211/ Wednesday, October 31, 1990

Pages 45822 - 45825

	  PAGE  4 /4

PS-117, ANPRM, #1

