Pipeline Safety: Safety of Gas Transmission Pipelines: MAOP Reconfirmation, Expansion of Assessment Requirements, and Other Related Amendments: Response to a Joint Petition for Reconsideration

Citation85 FR 40132
Record Number2020-14403
Published date06 July 2020
SectionRules and Regulations
CourtPipeline And Hazardous Materials Safety Administration
Federal Register, Volume 85 Issue 129 (Monday, July 6, 2020)
[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
                [Rules and Regulations]
                [Pages 40132-40134]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-14403]
                [[Page 40132]]
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                DEPARTMENT OF TRANSPORTATION
                Pipeline and Hazardous Materials Safety Administration
                49 CFR Part 192
                [Docket No. PHMSA-2011-0023; Amdt. No. 192-127]
                RIN 2137-AE72
                Pipeline Safety: Safety of Gas Transmission Pipelines: MAOP
                Reconfirmation, Expansion of Assessment Requirements, and Other Related
                Amendments: Response to a Joint Petition for Reconsideration
                AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
                DOT.
                ACTION: Final rule; petition for reconsideration.
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                SUMMARY: This document responds to a joint Petition for Reconsideration
                (Petition) that was submitted on October 31, 2019, by the American Gas
                Association, the American Petroleum Institute, the American Public Gas
                Association, and the Interstate Natural Gas Association of America (the
                Associations). In the Petition, the Associations requested that PHMSA
                amend the final rule titled ``Safety of Gas Transmission Pipelines:
                MAOP Reconfirmation, Expansion of Assessment Requirements, and Other
                Related Amendments'' (Gas Transmission Final Rule) published in the
                Federal Register on October 1, 2019. In response to the Petition, PHMSA
                is amending the Gas Transmission Final Rule to address the requirements
                for recordkeeping and the applicability of maximum allowable operating
                pressure (MAOP) reconfirmation. The amendments are intended to clarify
                the regulatory requirements identified in the Petition without
                adversely affecting safety.
                DATES: The effective date of this rule is July 1, 2020.
                FOR FURTHER INFORMATION CONTACT: For technical questions, contact Steve
                Nanney, Project Manager, by telephone at 713-272-2855 or by email at
                [email protected]. For general information, contact Robert Jagger,
                Senior Transportation Specialist, by telephone at 202-366-4361 or by
                email at [email protected].
                SUPPLEMENTARY INFORMATION:
                I. Background
                 On October 1, 2019, (84 FR 52180) PHMSA published a final rule
                titled, ``Safety of Gas Transmission Pipelines: MAOP Reconfirmation,
                Expansion of Assessment Requirements, and Other Related Amendments,''
                (Gas Transmission Final Rule) that amended the Pipeline Safety
                Regulations (PSR) at 49 CFR part 192 to improve the safety of onshore
                gas transmission pipelines. The Gas Transmission Final Rule addressed
                integrity management requirements and other requirements.
                 The Gas Transmission Final Rule focused on the actions an operator
                must take to reconfirm the maximum allowable operating pressure (MAOP)
                of previously untested natural gas transmission pipelines and pipelines
                lacking certain material or operational records. It also required
                operators to reconfirm the MAOP of those segments and gather any
                necessary material property records they might need to do so, where the
                records needed to substantiate the MAOP are not traceable, verifiable,
                and complete. Examples of the records necessary to confirm MAOP include
                pressure test records or material property records (mechanical
                properties) that verify the MAOP is appropriate for the class location.
                 On October 31, 2019, the American Public Gas Association, the
                American Gas Association, the Interstate Natural Gas Association, and
                the American Petroleum Institute (the Associations) submitted a
                Petition for Reconsideration of the Gas Transmission Final Rule in
                accordance with 49 CFR 190.335. In the Petition, the Associations
                requested that PHMSA (1) clarify that the recordkeeping requirement in
                Sec. 192.5(d) only applies to transmission pipelines, and (2) limit
                the applicability of the MAOP reconfirmation requirements in Sec.
                192.624(a)(1) to those pipeline segments that do not have a traceable,
                verifiable, and complete pressure test record under Sec.
                192.619(a)(2). PHMSA granted the Petition and responded with a letter
                dated December 20, 2019, in accordance with 49 CFR 190.337(b).\1\ This
                final rule amends the Gas Transmission Final Rule to implement the
                changes.
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                 \1\ PHMSA has placed a copy of the Associations' Petition for
                Reconsideration and PHMSA's response in the Docket for the Gas
                Transmission Final Rule, See Docket No. HYPERLINK ``https://
                www.regulations.gov/docket?D=PHMSA-2011-0023'' PHMSA-2011-0023.
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                Petition To Clarify the Applicability of the Recordkeeping Requirements
                of Sec. 192.5(d)
                 In the Gas Transmission Final Rule published on October 1, 2019,
                PHMSA added Sec. 192.5(d) to require an operator to have and maintain
                records that document the current class location of each pipeline
                segment. In the preamble, PHMSA stated that this recordkeeping
                requirement applies to each operator of a gas transmission pipeline;
                however, PHMSA inadvertently omitted language in the rule's regulatory
                text that would have made clear that the recordkeeping requirements of
                that section applied only to gas transmission pipelines. In their
                Petition, the Associations requested that PHMSA clarify that the
                recordkeeping requirements in Sec. 192.5(d) only apply to gas
                transmission pipelines. This request aligns with the final rule's
                original intent.
                 After reviewing the Petition, the language in the Gas Transmission
                Final Rule, and the Pipeline Safety Regulations, PHMSA granted the
                Associations' request to clarify that the recordkeeping requirements in
                Sec. 192.5(d) only apply to gas transmission pipelines. The
                recordkeeping requirements of that section apply to records that
                document current class location determinations and records that
                demonstrate how an operator arrived at such a determination for each
                class location. PHMSA has concluded that the change requested in the
                Petition is appropriate, is consistent with the original intent of the
                final rule, and does not compromise safety.
                Petition To Limit the Applicability of Sec. 192.624(a)(1)
                 In the Gas Transmission Final Rule, PHMSA defined a set of pipeline
                segments for which operators must reconfirm the MAOP. Specifically,
                Sec. 192.624(a)(1) requires operators of certain gas transmission
                pipelines to reconfirm MAOP if, among other things, the ``records
                necessary to establish the MAOP in accordance with Sec. 192.619(a) . .
                . are not traceable, verifiable, and complete'' (TVC). In the Petition,
                the Associations requested that PHMSA revise Sec. 192.624(a)(1) to
                clarify that it does not apply where an operator already has records
                necessary to establish MAOP under Sec. 192.619(a)(2) (i.e., pressure
                test records). The Associations stated that ``without the specific
                reference to Sec. 192.619(a)(2), it is unclear whether an operator
                must reconfirm MAOP when a pipeline segment already has a TVC pressure
                test record but is missing other records under Sec. 192.619(a)(1) or
                (a)(3).'' The Associations noted that this revision would align with a
                corresponding Gas Pipeline Advisory Committee recommendation \2\ and
                confirm that
                [[Page 40133]]
                Sec. 192.624(a)(1) does not require operators to reconfirm the MAOP of
                pipeline segments if they have TVC pressure test records.
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                 \2\ Gas Pipeline Advisory Committee Meeting Final Voting Slides
                at 1 (Mar. 26-28, 2018). The slide presentation is available in the
                docket, PHMSA-2011-0023, which can be accessed at
                www.regulations.gov.
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                 PHMSA granted the Associations' Petition to limit the applicability
                of the MAOP reconfirmation requirements of Sec. 192.624(a)(1) to those
                pipeline segments that do not have TVC pressure test records under
                Sec. 192.619(a)(2).\3\ PHMSA has determined that the Associations'
                specific request to limit the applicability of these MAOP
                reconfirmation requirements in Sec. 192.624(a)(1) will not compromise
                safety because the availablility of TVC pressure test records under
                Sec. 192.619(a)(2) allows an operator to establish the MAOP for the
                pipeline segment without the need for reconfirmation. Further, this
                change is consistent with recommendations from the Gas Pipeline
                Advisory Committee and the language proposed in the Notice of Proposed
                Rulemaking (HYPERLINK ``https://www.federalregister.gov/citation/81-FR-
                20722'' 81 FR 20722; April 8, 2016).
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                 \3\ PHMSA granted the Associations' Petition in a letter dated
                Dec. 20, 2019. The letters responding to Associations are available
                in the docket, PHMSA-2011-0023, which can be accessed at
                www.regulations.gov.
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                 As already specified in the Gas Transmission Rule, if operators are
                missing any material properties during anomaly evaluations and repairs,
                operators must confirm those material properties under Sec. Sec.
                192.607 and 192.712(e) through (g).\4\ Any pipeline segment that is
                missing records necessary to comply with other aspects of the PSR must
                meet all applicable provisions of part 192 for any future MAOP
                increases. An increase in MAOP must be based upon the applicable
                requirements for design; pressure testing; highest actual operating
                pressure (for any segment not re-pressure tested); and the maximum safe
                operating pressure based upon the pipeline history as required by Sec.
                192.619(a)(1) through (4). In addition, any increase in MAOP must be
                based upon the class location requirements in Sec. Sec. 192.5 and
                192.611 for MAOP determination.
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                 \4\ PHMSA may provide more clarification on these requirements
                in the upcoming rulemaking, ``Pipeline Safety: Safety of Gas
                Transmission Pipelines: Repair Criteria, Integrity Management
                Improvements, Cathodic Protection, Management of Change, and Other
                Related Amendments.'' RIN 2137-AE72.
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                II. Regulatory Analyses and Notices
                Statutory/Legal Authority
                 These amendments are made pursuant to the Federal Pipeline Safety
                Statutes (49 U.S.C. 60101 et seq.). Section 60102 authorizes the
                Secretary of Transportation to issue regulations governing design,
                installation, inspection, emergency plans and procedures, testing,
                construction, extension, operation, replacement, and maintenance of
                pipeline facilities, as delegated to the PHMSA Administrator under 49
                CFR 1.97.
                Executive Orders 12866 and 13771, and DOT Regulatory Policies and
                Procedures
                 Executive Order 12866 (``Regulatory Planning and Review'' \5\)
                requires agencies to regulate in the ``most cost-effective manner,'' to
                make a ``reasoned determination that the benefits of the intended
                regulation justify its costs,'' and to develop regulations that
                ``impose the least burden on society.'' Similarly, DOT regulations
                require that regulations issued by PHMSA and other DOT Operating
                Administrations ``should be designed to minimize burdens and reduce
                barriers to market entry whenever possible, consistent with the
                effective promotion of safety'' and should generally ``not be issued
                unless their benefits are expected to exceed their costs.'' Sec.
                5.5(f)-(g). The Gas Transmission Final Rule was considered a
                significant regulatory action under Executive Order 12866 and Executive
                Order 13771 \6\ (``Reducing Regulation and Controlling Regulatory
                Costs''). It was also considered significant under the Regulatory
                Policies and Procedures of the DOT at 49 CFR part 5 because of
                substantial congressional, State, industry, and public interest in
                pipeline safety. Therefore, the Office of Management and Budget (OMB)
                reviewed the Gas Transmission Final Rule in accordance with Executive
                Order 12866, and determined the rule was consistent with Executive
                Order 12866 requirements and 49 U.S.C. 60102(b)(5)-(6). PHMSA published
                a final regulatory impact analysis for the Gas Transmission Final Rule,
                which is available in the rulemaking docket.
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                 \5\ 58 FR 51735 (Oct. 4, 1993).
                 \6\ 82 FR 9339 (Feb. 24, 2017).
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                 This document amends the Gas Transmission Final Rule and imposes no
                incremental changes or costs to the regulated industry, except that the
                amendments may provide relief to the extent the changes reduce
                confusion by improving the clarity of the regulations. Therefore, this
                is a non-significant action and was not reviewed by OMB.
                Regulatory Flexibility Act
                 The Regulatory Flexibility Act, as amended by the Small Business
                Regulatory Flexibility Fairness Act of 1996 (5 U.S.C. 601 et seq.)
                requires Federal regulatory agencies to prepare a Final Regulatory
                Flexibility Analysis (FRFA) for any final rule subject to notice-and-
                comment rulemaking under the Administrative Procedure Act (5 U.S.C.
                553), unless the agency head certifies that the rule will not have a
                significant economic impact on a substantial number of small entities.
                PHMSA prepared a FRFA for the Gas Transmission Final Rule, which is
                available in the docket for this rulemaking. These amendments to the
                Gas Transmission Final Rule have no substantial effect on that
                analysis.
                Paperwork Reduction Act
                 These amendments impose no new requirements for the recordkeeping
                and reporting contained in the October 1, 2019, Gas Transmission Final
                Rule.
                Unfunded Mandates Reform Act of 1995
                 These amendments to the Gas Transmission Final Rule do not impose
                unfunded mandates under the Unfunded Mandates Reform Act of 1995 (2
                U.S.C. 1501 et seq.; UMRA). They do not impose enforceable duties on
                State, local, or Tribal governments or on the private sector of $100
                million or more, adjusted for inflation, in any one year and therefore
                do not have implications under Section 202 of the UMRA of 1995.
                 PHMSA prepared an analysis of the UMRA considerations in the final
                regulatory impact analysis for the Gas Transmission Final Rule, which
                is available in the docket for the rulemaking. These amendments to the
                Gas Transmission Final Rule have no substantial effect on that
                analysis. Therefore, PHMSA determines that these amendments imposes no
                unfunded mandates.
                National Environmental Policy Act
                 PHMSA had analyzed the Gas Transmission Final Rule in accordance
                with the National Environmental Policy Act (NEPA) (42 U.S.C. 4321 et
                seq.) and implementing Council on Environmental Quality regulations (40
                CFR part 1500) and DOT implementing policies (DOT Order 5610.1C,
                ``Procedures for Considering Environmental Impacts'') and determined
                the final rule would not significantly affect the quality of the human
                environment. PHMSA prepared an analysis of the NEPA considerations in
                an Environmental Analysis for Gas Transmission Final Rule, which is
                available in the docket for the rulemaking. The amendments to the Gas
                Transmission Final Rule implemented by this document have no
                substantial effect on the NEPA analysis.
                [[Page 40134]]
                Privacy Act Statement
                 In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
                public to inform its rulemaking process. 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.
                Executive Order 13132
                 PHMSA analyzed these amendments to the Gas Transmission Final Rule
                in accordance with Executive Order 13132 (``Federalism'' \7\). The
                Federal Pipeline Safety Statute, specifically 49 U.S.C. 60104(c),
                prohibit State safety regulation of interstate pipelines. Under the
                pipeline safety laws, States have the ability to augment pipeline
                safety requirements for intrastate pipelines regulated by PHMSA, but
                may not approve safety requirements less stringent than those required
                by Federal law. A State may also regulate an intrastate pipeline
                facility PHMSA does not regulate. It is these statutory provisions, not
                the rule, that govern preemption of State law.
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                 \7\ 64 FR 43255 (Aug. 10, 1999).
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                 PHMSA analyzed the Gas Transmission Final Rule and determined that
                the consultation and funding requirements of Executive Order 13132 do
                not apply. These amendments to Gas Transmission Final Rule have no
                substantial effect on that analysis. These amendments to the Gas
                Transmission Final Rule do not have a substantial direct effect on the
                States, the relationship between the national government and the
                States, or the distribution of power and responsibilities among the
                various levels of government. These amendments do not impose any
                substantial direct compliance costs on State and local governments.
                Executive Order 13211
                 PHMSA analyzed the Gas Transmission Final Rule and determined that
                the requirements of Executive Order 13211 (``Actions Concerning
                Regulations that Significantly Affect Energy Supply, Distribution, or
                Use'') \8\ do not apply. These amendments to the Gas Transmission Final
                Rule are not a ``significant energy action'' under Executive Order
                13211. These amendments are not likely to have a significant adverse
                effect on supply, distribution, or energy use. Further, OMB has not
                designated these amendments as a significant energy action.
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                 \8\ 66 FR 28355 (May 22, 2001).
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                Executive Order 13175
                 This document was analyzed in accordance with the principles and
                criteria contained in Executive Order 13175 (``Consultation and
                Coordination with Indian Tribal Governments'') \9\ and DOT Order
                5301.1, ``Department of Transportation Policies, Programs, and
                Procedures Affecting American Indians, Alaska Natives, and Tribes.''
                Executive Order 13175 and DOT Order 5301.1 require DOT Operating
                Administrations to assure meaningful and timely input from Indian
                Tribal government representatives in the development of rules that
                significantly or uniquely affect Tribal communities by imposing
                ``substantial direct compliance costs'' or ``substantial direct
                effects'' on such communities or the relationship and distribution of
                power between the Federal Government and Indian Tribes. The amendments
                within this document neither impose direct compliance costs on Tribal
                communities, nor have a substantial direct effect on those communities.
                Therefore, the funding and consultation requirements of Executive Order
                13175 and DOT Order 5301.1 do not apply.
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                 \9\ 65 FR 67249 (Nov. 9, 2000).
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                Executive Order 13609 and International Trade Analysis
                 Under Executive Order 13609 (``Promoting International Regulatory
                Cooperation'' \10\), agencies must consider whether the impacts
                associated with significant variations between domestic and
                international regulatory approaches are unnecessary or may impair the
                ability of American business to export and compete internationally. In
                meeting shared challenges involving health, safety, labor, security,
                environmental, and other issues, international regulatory cooperation
                can identify approaches that are at least as protective as those that
                are or would be adopted in the absence of such cooperation.
                International regulatory cooperation can also reduce, eliminate, or
                prevent unnecessary differences in regulatory requirements. The
                amendments in this document do not impact international trade.
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                 \10\ 77 FR 26413 (Nov. 9, 2000).
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                Regulation Identifier Number (RIN)
                 A regulation identifier number (RIN) is assigned to each regulatory
                action listed in the Unified Agenda of Federal Regulations. The
                Regulatory Information Service Center publishes the Unified Agenda in
                April and October of each year. The RIN contained in the heading of
                this document can be used to cross-reference this action with the
                Unified Agenda.
                List of Subjects in 49 CFR Part 192
                 Incorporation by reference, Integrity assessments, Material
                properties verification, MAOP reconfirmation, Pipeline safety,
                Predicted failure pressure, Recordkeeping, Risk assessment, Safety
                devices.
                 In consideration of the foregoing, PHMSA is amending 49 CFR part
                192 as follows:
                PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE:
                MINIMUM FEDERAL SAFETY STANDARDS
                0
                1. The authority citation for part 192 continues to read as follows:
                 Authority: 30 U.S.C. 185(w)(3), 49 U.S.C. 5103, 60101 et seq.,
                and 49 CFR 197.
                0
                2. In Sec. 192.5, as amended October 1, 2019, at 84 FR 52243 and
                effective July 1, 2020, paragraph (d) is revised to read as follows:
                Sec. 192.5 Class locations.
                * * * * *
                 (d) An operator must have records that document the current class
                location of each gas transmission pipeline segment and that demonstrate
                how the operator determined each current class location in accordance
                with this section.
                0
                3. In Sec. 192.624, as amended October 1, 2019, at 84 FR 52247 and
                effective July 1, 2020, paragraph (a)(1) introductory text is revised
                to read as follows:
                Sec. 192.624 Maximum allowable operating pressure reconfirmation:
                Onshore steel transmission pipelines.
                 (a) * * *
                 (1) Records necessary to establish the MAOP in accordance with
                Sec. 192.619(a)(2), including records required by Sec. 192.517(a),
                are not traceable, verifiable, and complete and the pipeline is located
                in one of the following locations:
                * * * * *
                 Issued in Washington, DC, on June 29, 2020, under authority
                delegated in 49 CFR part 1.97.
                Howard R. Elliott,
                Administrator.
                [FR Doc. 2020-14403 Filed 7-1-20; 11:15 am]
                BILLING CODE 4910-60-P
                

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