Pipeline Safety: Midstream Facilities Frequently Asked Questions
| Published date | 04 November 2020 |
| Citation | 85 FR 70124 |
| Record Number | 2020-24011 |
| Section | Proposed rules |
| Court | Pipeline And Hazardous Materials Safety Administration |
Federal Register, Volume 85 Issue 214 (Wednesday, November 4, 2020)
[Federal Register Volume 85, Number 214 (Wednesday, November 4, 2020)]
[Proposed Rules]
[Pages 70124-70126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24011]
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DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
49 CFR Parts 192 and 195
[Docket No. PHMSA-2019-0199]
Pipeline Safety: Midstream Facilities Frequently Asked Questions
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.
ACTION: Notification and request for comments.
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SUMMARY: PHMSA is making available for comment a set of draft
frequently asked questions (FAQs) regarding federal oversight of
midstream processing facilities. Specifically, this guidance will
delineate where PHMSA and the Occupational Safety and Health
Administration (OSHA) will each perform inspection and enforcement
activities for midstream processing facilities where there is
overlapping authority. The proposed guidance consists of a set of seven
FAQs that were developed by the Midstream Processing Working Group
(Working Group) established by the Technical Pipeline Safety Standards
Committee, also known as the Gas Pipeline Advisory Committee (GPAC),
and the Technical Hazardous Liquid Pipeline Safety Standards Committee,
also known as the Liquid Pipeline Advisory Committee (LPAC).
DATES: Persons interested in submitting comments on the draft FAQs must
do so by January 4, 2021.
ADDRESSES: You may submit comments, which should be identified by
docket number PHMSA-2019-0199, by any of the following methods:
Federal eRulemaking Portal: Comments may be submitted to
http://www.regulations.gov. Please follow the online instructions to
submit comments.
Mail: Comments may be submitted by mailing them to the
Dockets Management System, U.S. Department of Transportation, Dockets
Operations, M-30, Ground Floor, Room W12-140, 1200 New Jersey Avenue
SE, Washington, DC 20590-0001.
Hand Delivery: Comments may be submitted by hand-
delivering them to 1200 New Jersey Avenue SE, West Building, Ground
Floor, Room W12-140, Washington, DC 20590-0001. Comments may be
delivered between 9 a.m. and 5 p.m. ET, Monday through Friday, except
for Federal holidays.
Fax: Comments may be faxed to 202-493-2251.
Instructions: Identify docket number PHMSA-2019-0199 at
the beginning of your comments. If you submit your comments by mail,
you must submit two copies. If you wish to receive confirmation that
PHMSA received your comments, you must include a self-addressed stamped
postcard. Internet users should submit comments at http://www.regulations.gov.
Privacy Act: DOT may solicit comments from the public
regarding certain general notices. DOT posts these comments, without
edit, including any personal information the commenter provides, to
www.regulations.gov, as described in the system of records notice (DOT/
ALL-14 FDMS), which can be reviewed at www.dot.gov/privacy.
Confidential Business Information: Confidential Business
Information (CBI) is commercial or financial information that is both
customarily and actually treated as private by its owner. Under the
Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from
public disclosure. If your comments responsive to this document contain
commercial or financial information that is customarily treated as
private, that you actually treat as private, and that is relevant or
responsive to this document, it is important that you clearly designate
the submitted comments as CBI. Pursuant to 49 CFR 190.343, you may ask
PHMSA to give confidential treatment to information you give to the
agency by taking the following steps: (1) Mark each page of the
original document submission containing CBI as ``Confidential''; (2)
send PHMSA, along with the original document, a second copy of the
original document with the CBI deleted; and (3) explain why the
information you are submitting is CBI. Unless you are notified
otherwise, PHMSA will treat such marked submissions as confidential
under FOIA, and they will not be placed in the public docket of this
notification. Submissions containing CBI should be sent to Sayler
Palabrica at [email protected]. Any commentary PHMSA receives
that is not specifically designated as CBI will be placed in the public
docket for this rulemaking.
Docket: The docket containing background documents and
received comments is available at http://www.regulations.gov. Once on
this site, please follow the online instructions for accessing the
dockets. Alternatively, you may review these documents in person at the
street address listed above.
[[Page 70125]]
FOR FURTHER INFORMATION CONTACT: Sayler Palabrica, Transportation
Specialist, at 202-366-0559.
SUPPLEMENTARY INFORMATION: PHMSA provides written clarification
regarding the pipeline safety regulations found at 49 CFR parts 190-199
in the form of FAQs and other guidance materials. PHMSA is requesting
public comment on a set of draft FAQs that were developed by the
Working Group that was established by the GPAC and LPAC. These draft
FAQs are intended to clarify when each of PHMSA or OSHA intends to
exercise its respective regulatory inspection and enforcement authority
over midstream processing facilities involved in pipeline
transportation of energy products. The intent of this guidance is to
ensure that there is no confusion or unnecessary gaps or overlaps in
Federal oversight of midstream processing facilities. All guidance,
including these draft FAQs, is intended to be explanatory in nature.
FAQs are provided to help the regulated community understand how to
comply with the regulations, but they are not substantive rules
themselves and do not create legally enforceable rights, assign duties,
or impose new obligations not otherwise contained in the existing
regulations and standards. However, an operator who is able to
demonstrate compliance with the FAQs is likely to be able to
demonstrate compliance with the relevant regulations. If a different
course of action is taken by an operator, the operator must be able to
demonstrate that its conduct is in accordance with the regulations.
The draft FAQs are included in this document. Comments submitted in
response to this document and other supporting documents may be found
in Docket No. PHMSA-2019-0199 at https://www.regulations.gov. Before
finalizing the FAQs, PHMSA will consider all substantive comments
received on or before the comment closing date. Comments received after
the closing date will be considered to the extent practicable. Once
finalized, the FAQs will be posted on PHMSA's public website at https://www.phmsa.dot.gov/about-phmsa/phmsa-faqs.
Background
Natural gas, crude oil, and associated fluids typically go through
a number of processing steps before they can be delivered to end users
as refined petroleum products, natural gas liquids, natural gas, and
other products. Some of the facilities where these processes take place
are midstream processing facilities downstream of initial production
but upstream of end users.
For the purposes of this guidance document, a ``midstream
processing facility'' is a processing facility that receives products
being transported by PHMSA-jurisdictional pipelines and re-injects
those products for continued transportation by pipeline. In other
words, a midstream processing facility is a processing facility with
piping or storage that is engaged in the transportation of gas or
hazardous liquids by pipeline, and is therefore a pipeline facility
subject to PHMSA jurisdiction. The pipeline systems within or
associated with midstream processing facilities may be subject to
regulation by one or more Federal agencies, depending on the facility's
purpose and configuration. PHMSA regulates the safety of
transportation-related pipeline systems associated with midstream
processing facilities in 49 CFR parts 190-199, while OSHA regulates
safety within midstream processing facilities using the Process Safety
Management (PSM) regulations (29 CFR 1910.119). Uncertainty regarding
where each of these respective regulatory authorities begins and ends
in connection with midstream processing facilities has led to confusion
among regulated entities and unnecessary duplication of regulatory
efforts by the Federal Government.
To address these issues, the GPAC and LPAC established the Working
Group in 2014. The Working Group consisted of members representing
PHMSA, OSHA, and the midstream processing industry. The goal of the
Working Group was to better understand and improve the safety of
midstream processing facilities by increasing clarity and eliminating
unnecessary gaps and overlaps in Federal safety oversight. In
particular, the Working Group was tasked with evaluating the
equivalency of PHMSA and OSHA midstream processing facility safety
requirements; identifying means to delineate exercise of inspection and
enforcement responsibilities (``regulatory oversight activities'')
between the two agencies by clarifying the inlet and outlet boundaries
of midstream processing facilities; and addressing the oversight of
midstream processing facilities with pass-through, bypass, and storage
configurations, including storage-related piping.
The Working Group met on several occasions in 2014 and 2015. During
that time, the Working Group found that PHMSA's pipeline safety
regulations in 49 CFR parts 190-199 and OSHA's PSM requirements at 29
CFR 1910.119 provide equivalent safety for midstream processing
facilities. However, the enforcement of both their regulatory regimes
to the same facilities created unnecessary contradictions and
confusion, potentially decreasing safety. Therefore, in the interest of
improving safety, ensuring effective government oversight, and reducing
regulatory redundancy, PHMSA and OSHA agreed to delineate where they
each would perform regulatory oversight activities for midstream
processing facilities based on the predominate use of the facilities in
question. As discussed during the Working Group's presentation to the
GPAC and the LPAC on August 26, 2015, in order to apply the FAQs, an
operator will be expected to make records and documentation that prove
the predominate use of a facility available to PHMSA and OSHA for
review and verification. See pages 71-75 of the transcript for the
second day of the meeting, available in the docket for this document
and at https://primis.phmsa.dot.gov/meetings/MtgHome.mtg?mtg=105&nocache=8221.
These FAQs reflect agreement by PHMSA and OSHA to prioritize safety
and regulatory clarity in regulatory oversight activities; however,
nothing in these FAQs changes the agencies' statutory authority with
respect to midstream processing facilities. For example, PHMSA may
still issue a corrective action order under 49 U.S.C. 60112 or a safety
order under 49 U.S.C. 60117(l) if a safety issue is identified.
The Working Group proposed seven draft FAQs to help clarify the
delineation of regulatory oversight activities between PHMSA and OSHA
for the regulated industry and Federal and State pipeline safety
inspection and enforcement staff. PHMSA is soliciting public comments
on these draft FAQs, which address the following issues:
Defining the terms ``processing'' and ``processing
facility.''
Addressing oversight issues associated with bypass
configurations, complex facilities with multiple processing units, and
gas storage systems.
Identifying the upstream and downstream demarcation points
between pipeline transportation facilities that will be subject to
regulatory oversight activities under PHMSA's pipeline safety
regulations in 49 CFR parts 190 through 199, and processing facilities
that will be subject to regulatory oversight activities by OSHA under
its PSM requirements in 29 CFR 1910.119.
Historically, PHMSA and OSHA have coordinated efforts to ensure
that there are no gaps in oversight over any
[[Page 70126]]
individual facility and this cooperation will continue after this
guidance is finalized.
The proposed definitions contained within these FAQs are limited in
use for applying these FAQs for the purpose of delineation between
PHMSA and OSHA exercise of their respective regulatory oversight
authorities. The proposed FAQ definitions will not be codified in Parts
190 through 199, and are not intended to be used for purposes other
than to help the public interpret the application of PHMSA and OSHA's
regulations to a pipeline facility.
Executive Order 13891 and DOT Guidance Procedures
This draft guidance document has been reviewed and cleared by the
PHMSA Office of Chief Counsel in accordance with the Department's
guidance procedures in 49 CFR 5.25-5.51. It has been determined to be
non-significant and, as defined in 49 CFR 5.37, not otherwise of
importance to the Department's interest. This draft guidance document
will be posted on PHMSA's website in accordance with 49 CFR 5.31 and
Executive Order 13891.
Draft Midstream Processing Facilities FAQs
This draft guidance document is intended to provide clarity to the
public regarding existing pipeline safety standards. The contents of
this document do not have the force and effect of law and are not meant
to bind the public in any way, but pipeline operators must comply with
the underlying safety standards.
Q 1: Definitions
Q 1-A: What is Processing?
For the purposes of this guidance document, ``processing'' is
defined as the treatment of products including, but not limited to
dehydration, removal of contaminants by separation or filtration,
blending with other products, and heating or cooling units that
separate or purify products and remove condensates by distillation.
These FAQs do not cover facilities used for the chemical conversion
of crude oil into refined petroleum products (i.e. refining
facilities).
Q 1-B: What is a Processing Facility?
A ``processing facility'' comprises one or more individual units
that perform a processing operation (see Q 1-A) and meets the criteria
for applicability of the Occupational Safety and Health
Administration(OSHA) process safety management regulations (29 CFR
1910.119).
Q 2: How does one delineate the boundary between pipeline
transportation and a processing facility?
PHMSA policy indicates that, in deference to OSHA's exercise of its
authority, it will not conduct inspection and enforcement activities
(``regulatory oversight activities'') under 49 CFR part 192 and 195 for
pipelines downstream of the first pressure control device entering a
processing facility, and upstream of the last pressure control device
leaving that processing facility, except as described in provisions of
FAQ 4.
Q 3: How does PHMSA's policy apply to regulatory oversight of a
pipeline entering a processing facility that bypasses a pressure
control device?
A pipeline that predominantly (more than 50% of the time during the
preceding calendar year) bypasses a pressure control device will be
subject to PHMSA regulatory oversight activities under 49 CFR part 192
or 195. Further, if a pipeline bypasses a pressure control device that
is permanently no longer in service, the pipeline will be subject to
PHMSA regulatory oversight activities under 49 CFR part 192 or 195.
Q 4: How does PHMSA's policy apply to regulatory oversight of piping
that bypasses processing downstream of the first pressure control
device?
Piping that is downstream of the first pressure control device that
is not predominately (more than 50% of the time during the previous
calendar year) used to bypass processing will be subject to regulatory
oversight activities by OSHA under its's process safety management
regulations. Piping that is downstream of the first pressure control
device that is predominantly (more than 50% of the time during the
previous calendar year) used to bypass processing will be subject to
PHMSA regulatory oversight activities under 49 CFR part 192 or 195.
Q 5: What if a given section of piping located on the grounds of a
processing facility served by PHMSA-regulated pipelines connects two
processing units or is otherwise used for a processing function?
If the piping is located downstream of the first pressure control
device entering the facility and upstream of the last pressure control
device leaving the facility, it would be subject to regulatory
oversight activities by OSHA under its process safety management
regulations. PHMSA policy indicates that in deference to OSHA's
exercise of its authority, this section of piping would not be subject
to PHMSA regulatory oversight activities under 49 CFR part 192 or 195.
Q 6. How is underground storage and associated piping located on the
grounds of a processing facility regulated?
Piping associated with underground storage used for the ``purpose
of managing processing facility inventory'' will be subject to
regulatory oversight activities by OSHA under its process safety
management regulations. Piping associated with storage caverns used for
transportation will be subject to PHMSA regulatory oversight activities
under 49 CFR part 192 or 195. Additionally, underground natural gas
storage facilities, as defined in Sec. 192.3, must comply with the
applicable reporting requirements in 49 CFR part 191 and underground
natural gas storage safety requirements in Sec. 192.12.
Q 7. How are pipelines connecting storage or processing facilities
regulated when traversing public or private lands (outside the grounds
of storage or processing facilities)?
Pipelines exiting a pressure control device of storage or
processing facilities and traversing public or private lands outside
the grounds of storage or processing facilities will be subject to
PHMSA regulatory oversight activities under 49 CFR part 192 or 195.
Issued in Washington, DC, on September 1, 2020, under authority
delegated in 49 CFR 1.97.
Alan K. Mayberry,
Associate Administrator for Pipeline Safety.
[FR Doc. 2020-24011 Filed 11-3-20; 8:45 am]
BILLING CODE 4910-60-P
