[Federal Register Volume 62, Number 197 (Friday, October 10, 1997)]
[Notices]
[Pages 53052-53057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26916]
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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration (RSPA), DOT
[Docket No. PS-142; Notice 9]
Pipeline Safety: Remaining Candidates for the Pipeline Risk
Management Demonstration Program
AGENCY: Office of Pipeline Safety, DOT.
ACTION: Notice.
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SUMMARY: The Research and Special Programs Administration's (RSPA)
Office of Pipeline Safety (OPS) has completed screening of twelve
candidate companies for the Pipeline Risk Management Demonstration
Program. OPS named and described the first three companies screened
(Northwest Pipeline Corporation, Shell Pipe Line Corporation, Tennessee
Gas Pipeline/East Tennessee Natural Gas) in a previous notice. The nine
additional companies screened subsequent to that notice are: Chevron
Pipe Line Company; CNG Transmission Corporation; Columbia Gas
Transmission Corporation/Columbia Gulf Transmission Company; Duke
Energy; Florida Gas Transmission Company; Lakehead Pipeline Company;
Mobil Pipe Line Company; Natural Gas Pipeline Company of America; and
Phillips Pipe Line Company. OPS believes these companies' demonstration
project proposals satisfy all eligibility criteria, based on a Letter
of Intent (LOI) submitted by each company to OPS, a subsequent OPS
screening, and an examination of each company's safety and
environmental compliance record. Although this notice does not contain
specific details of all project proposals, OPS believes the information
provided in these companies' LOIs was sufficient to justify proceeding
to the consultation process. Additional information, including further
details of specific project proposals, will be provided in future
Federal Register notices and other means of communication. This notice
is based on information obtained very early in the process. It informs
the public of which companies are interested in participating, the
technologies to be explored, and the geographic areas demonstration
projects may traverse. OPS invites public comment on any aspect of
these companies' proposals.
Comments: OPS requests that comments to this notice be submitted on
or before December 9, 1997 so that OPS can give the comments full
consideration before deciding whether to approve a company's proposal.
However, comments on any aspect of the Demonstration Program, including
the individual projects, will be accepted in the Docket throughout the
4-year demonstration period. Comments should be sent to the Dockets
Facility, U.S. Department of Transportation, Plaza 401, 400 Seventh
Street, SW, Washington, DC 20590-0001. Comments should identify the
docket number (PS-142). Persons should submit the original document and
one (1) copy. Persons wishing to receive confirmation of receipt of
their comments must include a self-addressed stamped postcard. The
Dockets Facility is located on the plaza level of the Nassif Building
in Room 401, 400 Seventh Street, SW, Washington, DC. The Dockets
Facility is open from 10:00 a.m. to 5:00 p.m., Monday through Friday,
except on Federal holidays.
FOR FURTHER INFORMATION CONTACT: Eben Wyman, (202) 366-0918 regarding
the subject matter of this notice. Contact the Dockets Unit, (202) 366-
5046, for docket material.
SUPPLEMENTARY INFORMATION: Appendix A of the Requests for Applications
for the Pipeline Risk Management
[[Page 53053]]
Demonstration Program (62 FR 14719; March 27, 1997) describes how OPS
will receive, review, approve, monitor, modify, and terminate company
risk management demonstration projects. This process established a July
25, 1997 deadline for companies considering participating in a
demonstration project to have submitted a Letter of Intent to OPS.
Based on Letters of Intent and additional screening considerations, OPS
has chosen twelve candidate companies whose project proposals merit
further consideration. OPS is entering into consultations with
candidate companies to clarify and refine demonstration project
provisions. OPS may approve up to ten demonstration projects. If OPS
approves a project, OPS will issue an order and begin auditing project
performance. OPS is limited to approving no more than ten projects for
participation in the program.
OPS expects the projects, and the Demonstration Program itself, to
evolve from lessons learned during the four-year demonstration period.
OPS hopes to learn whether and in what form risk management should be
incorporated into the Federal pipeline safety program on a permanent
basis.
This document is consistent with the OPS Communications Plan (62 FR
43028), published in the Federal Register on August 11, 1997. OPS is
requesting public input through all stages of the demonstration
projects, beginning with receipt of the Letters of Intent. Specific
benefits of public involvement in the Demonstration Program for OPS,
industry, State and community representatives include:
Exchange of information about specific and relevant local
factors during the decision-making process that may not be known at the
Federal or State level; and
Feedback regarding the success of the Demonstration
Program in accomplishing the goals for which it was designed.
OPS requests comments on safety, environmental, socioeconomic, land
use, geographic and any other issues that relate to these demonstration
project proposals. OPS is considering public input, as well as input
from local, State, and other federal agencies, during its consultations
with candidate companies to discuss demonstration project provisions.
OPS will publish the final provisions for each project and allow for
additional public comment before issuing a project approval order. OPS
will continue to seek broadbased input on individual demonstration
projects throughout the four-year demonstration period. OPS is engaging
in consultations with companies to achieve consensus on demonstration
project provisions. If OPS and a company reach agreement, OPS will
evaluate the company's formal proposal and approve those that offer the
most benefits in testing risk management practices on pipelines.
There were many distinguishing features contained in the LOI's that
attracted OPS to these proposals. Besides many geographic areas
involved, the type of terrain that these proposals would was also very
diverse. Proposals included marshlands, river crossings, mountains,
diverse climates, diverse soil types, etc. Further, demonstration sites
varied in population densities, and fall under all Class locations
ranging from Class 1 to Class 4. Class locations are areas
characterized by different population densities, and are how OPS
regulates pipelines according to populations in areas where pipelines
exist.
The following descriptions provide a brief, introductory summary of
each company's demonstration project proposal. The information is
derived from each company's LOI and from subsequent discussions between
OPS and the company. More detailed information regarding the individual
projects will be collected during the consultation process and
carefully considered before a project is approved. The company
descriptions are listed in alphabetical order.
1. Chevron Pipe Line Company (CPL): Chevron Pipe Line Company (CPL)
is proposing to use all or a portion of its Northwest Products Pipeline
System (NPPS) in the demonstration program. The NPPS consists of two,
eight-inch products pipelines, one transporting all grades of gasoline,
the other transporting distillates such as diesel and jet fuel. The 40-
year old pipeline system transports a total of 72,000 barrels per day
over 705 miles, traversing the states of Utah, Idaho, Oregon, and
Washington. These states fall under the oversight of the OPS Western
Region. The pipeline system begins at Chevron's Salt Lake City, Utah,
refinery and terminates in Spokane, Washington. The pipeline crosses
various terrains, including desert, farmland, mountains and several
major river crossings. Most of the route is through low density
population areas, with the exception of Salt Lake City and Boise,
Idaho, where the population densities are moderate.
CPL conducted a risk assessment of the NPPS in April, 1997. The
assessment identified areas requiring mitigation that CPL believed it
would not have otherwise identified through existing regulatory
requirements. CPL found most of the existing regulations to be
effective in reducing pipeline incidents, but also looked for
opportunities to diverge from existing regulations and offer risk
reduction alternatives that will add value. CPL is proposing a set of
risk management procedures that consider the scope of the risks and
would involve several employees throughout the company. CPL looks
forward to a closer working relationship with pipeline regulatory
agencies to allow for cost-effective alternatives that provide superior
safety.
CPL's risk management coordinator and point-of-contact is Dave
Feiglstok. He can be reached at Chevron Pipe Line Company, P.O. Box
6059, 4000 Executive Parkway, San Ramon, California, 94583-0959, or by
calling (510) 842-6893.
2. CNG Transmission Corporation: CNG Transmission Corporation
(CNGT) operates an interstate natural gas pipeline system consisting of
8,274 miles of transmission, storage, and gathering pipelines located
in Maryland, New York, Ohio, West Virginia, Pennsylvania and Virginia.
CNGT has identified 23 pipeline sections in all six states for its risk
management demonstration project. These states fall under the OPS
Central and Eastern Region.
CNGT proposes to apply risk control activities as an alternative to
current pipeline safety requirements regarding maximum allowable
operating pressure (MAOP) in various Class locations. These risk
control activities include use of smart pigging, special aerial
patrols, and remediation of anomalies, or defects that could affect the
pipeline's integrity. CNGT also proposes to incorporate additional
prevention and mitigation measures in its comprehensive demonstration
project to reduce the risk of third party damage.
CNG's risk management coordinator and point-of-contact is Robert
Fulton. He can be reached at CNG Transmission Corporation, 445 West
Main Street, P.O. Box 2450, Clarksburg, West Virginia 26392-2450, or by
calling (304) 623-8200.
3. Columbia Gas Transmission Corporation and Columbia Gulf
Transmission Company (Columbia): The Columbia system includes 12,705
miles of pipeline operated by Columbia Gas Transmission and 3,856 miles
of pipeline operated by Columbia Gulf Transmission. The Columbia Gas
Transmission portion originates in the Appalachian production areas and
transports gas to the Midwest and mid-Atlantic states. The Columbia
Gulf portion originates in the Gulf Coast
[[Page 53054]]
production areas and transports gas to the Columbia Gas system. Both
pipeline systems traverse a wide variety of terrain, including coastal
plain, offshore, marsh, major river crossings, mountainous regions, and
agricultural regions as well as some major population areas. The scope
of the proposed project includes New York, Ohio, Pennsylvania, and
Tennessee, and falls under OPS Central, Eastern, and Southern Region's
responsibility.
Columbia will include most, if not all, of its pipeline system and
phase in the implementation of risk control activities over the four-
year demonstration period. For the initial phase of the project,
Columbia proposes the following for its entire system:
Modified inspection frequency for relief and regulator
valves including capacity calculations;
Modified inspection frequency for rectifier and test point
inspection and detail survey;
Modified class location change resulting in different
inspection frequencies and time frame for action under certain
circumstances;
Use of hardness testing correlation to confirm pipe
properties in lieu of lab analysis under certain conditions;
Expanded use of alternative pipeline repair techniques
including welding activities and composite sleeves; and
Modified inspection frequency for valves and vaults.
Columbia also intends to include certain geographic or site-
specific risk management activities including:
Elimination of pipe replacement due only to class location
changes under certain conditions in Tennessee, New York, Ohio, and
Pennsylvania;
Modification of MAOP under certain conditions in Ohio,
Pennsylvania, and New York; and
New design and construction techniques for their proposed
Millennium Pipeline System.
OPS is interested in how Columbia approaches the maintenance
program for older pipelines, and uses a management approach that
integrates data collected across the organization.
Columbia's risk management coordinator and point-of-contact is John
S. Zurcher. He can be reached at Columbia at 1700 MacCorkle Avenue,
S.E., P.O. Box 1273, Charleston, West Virginia, 25325-1273, or by
calling (304) 357-2669.
4. Duke Energy: Duke Energy (formerly PanEnergy Corporation)
operates approximately 21,000 miles of interstate natural gas
transmission pipelines within the United States. This pipeline system
is composed of four interstate pipeline operating companies: Panhandle
Eastern Pipeline Company (6,600 miles), Texas Eastern Transmission
Corporation (9,000 miles), Trunkline Gas Company (4,200 miles), and
Algonquin Gas Transmission Company (1,100 miles). The system is
composed of pipelines with diverse physical attributes, such as age,
strength, and size, and operates in diverse geographic and demographic
environments. The project would be conducted in Pennsylvania, and is
under OPS Eastern Region's oversight.
Duke's proposal would be deployed in four phases. Each phase would
be initiated contingent on a detailed explanation of the risk
assessment and risk management programs that Duke uses on its pipelines
and OPS's acceptance of the implementation of each phase. The first
phase would involve the use of welding to repair external corrosion
damage. Recent research work by the pipeline industry evaluated and
tested this technique under simulated pipeline operating conditions,
and developed criteria for safe operation. Duke proposes to use these
criteria for repairs on the Texas Eastern system for anomalies detected
during planned remediation work of the pipeline in Pennsylvania. The
work would be restricted to specific, rural sections of pipeline on
Line A. Line A is a 36-inch pipeline installed from the late 1970
through the early 1980's, which traverses the state of Pennsylvania
west to east in parallel with two and sometimes three other Texas
Eastern pipelines of varying ages.
Duke Energy's proposal is being considered because this company
offers extensive experience with data collection and modeling for risk
assessment, applied in a prioritized structure.
Duke Energy's risk management coordinator and point-of-contact is
Andy Drake. He can be reached at Duke Energy Corporation, P.O. Box
1642, 5444 Westheimer Court, Houston, Texas 77056-1642, or by calling
(713) 989-2311.
5. Florida Gas Transmission Company (FGTC): Florida Gas
Transmission Company (FGTC), a wholly owned subsidiary of Citrus
Corporation, operates a pipeline of approximately 5,051 miles with a
capacity of 1.5 BCF/day. It transports natural gas from Texas to
Florida. Citrus Corporation is jointly owned by an Enron Corp.
subsidiary and Sonat Inc.
FGTC proposes a demonstration project involving a pipeline system
operated by its Orlando Florida Team. The proposed test area includes a
379-mile network of pipelines ranging in size from four-inch through
30-inch and in-age timeframes from one to 38 years, with numerous
measurement and regulation stations, a range of population densities
(from rural to highly metropolitan), and various geographic and soil
conditions.
For the demonstration program, FGTC proposes to submit an
application covering a wide range of alternative risk controls for:
Modifying MAOP;
Alternatives for class location changes; and
Changes in inspection frequencies and methods.
This project is being considered for use of diverse elements in
construction and operation practices.
FGTC's risk management coordinator and point-of-contact is Max
Brown. He can be reached at Florida Gas Transmission Company, P.O. Box
1188, Houston, Texas 77251-1188, or by calling (713) 853-6161.
6. Lakehead Pipe Line Company: Lakehead Pipe Line Company
(Lakehead) operates approximately 2,700 miles of liquid petroleum
pipelines through seven Midwestern states. Lakehead intends to use a
risk management approach for the control of potential longitudinal seam
cracks and internal and external corrosion on the 34-inch segments of
its Line 3 crude petroleum pipeline in North Dakota, Minnesota, and
Wisconsin. Items to be considered in this project include:
The use of advanced elastic wave in-line inspection
methodology (in lieu of hydrostatic testing) to evaluate and mitigate
the potential risk of a pipeline rupture resulting from long-seam crack
propagation on certain submerged pipeline segments.
The use of in-line inspection and advanced internal
corrosion mitigation and monitoring techniques to reduce the potential
risk of a pipeline rupture resulting from corrosion damage.
Application of comprehensive risk management techniques to
evaluate and mitigate problems associated with the integrity of tape
coating on a large diameter pipeline.
Identification of prescribed activities that may become
redundant or unnecessary in view of the potentially more effective and
significant measures employed above.
OPS sees benefit in Lakehead's exploration of techniques that may
offer greater safety benefits than current requirements. Lakehead has
also expressed an interest in developing new communications protocols
with OPS.
Lakehead's risk management coordinator and point-of-contact is
Richard Sandahl. He can be reached at
[[Page 53055]]
Lakehead Pipe Line Company, Lake Superior Place, 21 West Superior
Street, Duluth, Minnesota 55802-2067, or by calling (218) 725-0102.
7. Mobil Pipe Line Company: Mobil Pipe Line Company (Mobil)
currently owns approximately 5,409 miles of hazardous liquid pipeline
in nine states. The proposed demonstration project will be conducted at
Mobil's Patoka, Illinois, breakout tank facility in the OPS Central
Region, and is intended to demonstrate Mobil's release prevention
program. The prevention program uses an integrated system that includes
proper equipment design, construction, operator training, operating
procedures, periodic maintenance, periodic inspection, management
controls, and management practices. Mobil proposes to use the Mobil
Engineering Practices, elements of American Petroleum Institute
standards, sound engineering judgment, management controls,
sophisticated techniques called ``multi-attribute'' risk assessment
scenarios, and risk management principles to validate and verify the
integrity of its storage tanks. The project would also help demonstrate
how these release prevention measures would work in conjunction with
OPS's proposal to adopt multiple API Above Ground Storage Tank
standards. Mobil's proposal offers a focus on challenges to tank
integrity to provide special protection. Mobil's risk management
coordinator and point-of-contact is Steve Streeter. He can be reached
at Mobil Pipe Line Company, P.O. Box 900, Dallas, Texas 75221-0900, or
by calling (703) 842-6189.
8. Natural Gas Pipeline Company of America: Natural Gas Pipeline
Company of America (NGPL), a subsidiary of the MidCon Corporation,
moves natural gas through 13,000 miles of pipeline and pipeline
facilities in 14 different states. Approximately seventy percent of
NGPL's cross country transmission pipelines were constructed in the
last 50 years and are between 24 and 36 inches in diameter. The terrain
in which these pipelines are located is relatively flat with
predominantly lower stress clay, loam, and sandy soil. Population
distribution within 220 yards of the pipeline is 92 percent Class 1,
three percent Class 2, and five percent Class 3. This means that NGPL's
pipeline exists predominantly in low-density population areas.
NGPL currently practices risk management in its normal operations
and proposes to build on risk management programs by developing a more
formal set of procedures in compliance with the requirements of the
Risk Management Program Framework (62 FR 14719) and Risk Management
Program Standard. It proposes to apply risk management to the entire
pipeline system traversing Iowa, Illinois, and Indiana, all of which
operate under the oversight of OPS's Central Region office.
Company-wide issues that NGPL anticipates addressing include:
Testing existing research by the Pipeline Research
Committee for in-service surface weld repair of pipe body defects and
cold field bending of pipe;
Current drug testing frequency requirements;
Third party damage prevention programs, including annual
public awareness activities;
Review record retention requirements;
Evaluating shorted casing corrosion, over pressure
protection and proof testing of new or existing pipelines using inert
gas along with new technologies in corrosion minimization/
identification; and
Proof testing pipeline facilities using water or gas,
design factor requirements for fabricated assemblies, meter facilities,
and compressor facilities.
Site-specific issues in NGPL's proposal include:
Pipe replacement or maximum allowable operating pressure
(MAOP) reduction due to Class Location change;
The design yield strength or wall thickness of pipe with
an unknown strength;
The design factor at different population areas in Class
1, 2 and 3 locations;
Distance interval requirements for pipeline sectioning
with block valves;
Inspection intervals for rectifiers and other corrosion
inspection test intervals;
Surface rust on aboveground pipe and pipeline facilities;
and
Odorization in Class 3 areas and line patrol for different
``Class'' locations.
NGPL offers a very extensive range of alternatives in its proposal,
and has shown considerable interest in working with OPS to choose these
alternatives to address the most problematic areas.
NGPL's risk management coordinator and point-of-contact is Craig
Howard. He can be reached at Natural Gas Pipeline of America, 701 East
22nd Street, Lombard, Illinois 60148-5072, or by calling (630) 691-
3617.
9. Phillips Pipe Line Company: Phillip's risk management proposal
encompasses its Sweeny-Pasadena system, which consists of a 12-inch and
18-inch refined products pipeline in Texas. These lines cross 60 miles
of varied population densities in the Houston, Texas area.
Phillips is proposing a risk-based approach to all company and
third-party excavation activities that occur on these pipelines to
demonstrate that risk management practices can be effectively applied
to improve safety through reduction of third party damage. Because
third-party damage is the leading cause in pipeline failures, OPS looks
forward to investigating these damage prevention practices to provide
superior safety on the pipeline.
Currently, Phillips deploys planning and oversight resources based
on regulatory requirements on an equal basis regardless of related
risks. In its risk management application, the company would consider
risk factors such as depth of cover, operating status, population, and
environmental exposure, and equipment used. Phillips would demonstrate
that applying risk management principles to these factors, as well as
developing specific of performance measures, can be more effective in
assuring the pipeline's safety than what is achieved by current
regulations.
Phillip's risk management coordinator and point-of-contact is L.J.
Schmitz. He can be reached at Phillips Pipe Line Company, 370 AB,
Bartlesville, OK 74004, or by calling (918) 661-4814.
This concludes the nine demonstration summaries. For your
convenience, we are providing the summaries of the three companies that
were screened earlier in the process.
Appendix--Excerpt from the Federal Register Notice, ``Candidates
for the Pipeline Risk Management Demonstration Program'' (62 FR 40135;
July 25, 1997), which described the three projects screened earlier.
The only change in this section is that the Point-of-Contact for
Northwest Pipeline's proposed demonstration project has changed since
this notice was published. This updates the previous language.
SUPPLEMENTARY INFORMATION: OPS has previously screened the following
three candidates, and has determined that they meet the criteria for
participating with OPS in consultations about their proposals:
Northwest Pipeline Corporation, Shell Pipe Line Corporation, and
Tennessee Gas Pipeline Corporation/East Tennessee Natural Gas Company.
1. Northwest Pipeline Corporation (Northwest): Northwest operates
approximately 3,900 miles of interstate natural gas transmission line
running through six western states, with endpoints at Ingacio, Colorado
and the Canadian border at Sumas, Washington.
The pipeline traverses the densely populated regions of western
[[Page 53056]]
Washington and Oregon through the agricultural areas of eastern Oregon,
Washington and Idaho into the isolated areas of southwest Wyoming, Utah
and Colorado. The route covers a variety of terrains from mountains to
deserts, crossing numerous rivers and lakes, encountering very moderate
to very extreme climates, and crossing national parks, Indian nations,
wilderness areas, and habitats of numerous threatened and some
endangered species.
While Northwest proposes to apply a risk management approach to its
entire system, the company plans to limit regulatory exemptions to
specified locations on the pipeline.
OPS is interested in entering into consultations with Northwest
because its risk management program has the potential to:
Explore means of assessing and addressing risks presented
by a pipeline in rugged terrain susceptible to land movement;
Investigate the risk-reduction benefits of certain new
technologies; and
Investigate new means of industry/government partnering to
conduct cooperative pipeline research.
The proposed Northwest demonstration project also has the potential
to help OPS examine the benefits of risk management as a regulatory
alternative under a variety of conditions because of the following
distinguishing features:
A location with diverse geographic features (the
demonstration site traverses six western states: Washington, Oregon,
Idaho, Wyoming, Utah, and Colorado);
The identification of land movement as a significant risk
issue for Northwest; and
The opportunity to explore various regulatory approaches,
from item-by-item approvals to approvals of risk-based decision
processes.
Northwest's risk management program coordinator and point-of-
contact is Deonne Hootman. She can be reached at Northwest Pipeline
Corporation, P.O. Box 58900, Salt Lake City, UT, 84158-8800, or by
calling (801) 584-6874.
2. Shell Pipe Line Corporation (SPLC): SPLC operates nearly 8,000
miles of pipelines, transporting over 4.0 million barrels of oil, oil
products, and carbon dioxide daily and employing over 700 people in 16
states.
SPLC is proposing portions of two separate interstate pipeline
systems with different yet very distinct risk characteristics as its
demonstration project: one transporting ethylene, a flammable, highly
volatile liquid (HVL) that becomes a slightly lighter-than-air gas when
released to the atmosphere, and which, under certain conditions, could
form an explosive vapor cloud until diluted/dispersed; the second
transporting carbon dioxide, a non-flammable, inert, non-toxic liquid
that becomes a heavier-than-air gas when released to the atmosphere,
and which, under certain conditions, could become an asphyxiation
hazard until diluted/dispersed. Both ethylene, a hazardous liquid, and
carbon dioxide must comply with Part 195 of the Code of Federal
Regulations.
The first part of SPLC's proposed demonstration project consists of
nearly its entire Texas-Louisiana 12'' Ethylene Pipeline System
(approximately 205 miles of 250 miles), which transports chemical-grade
ethylene between Shell Oil Products Company's Deer Park (Texas)
Manufacturing Complex and its Napoleonville (Louisiana) transfer
facility. Ethylene is a chemical feed stock which is used in the
manufacture of plastics, antifreeze, detergents and other consumer
products. This proposed test area addresses risks concerning the
operation of a 12 inch, HVL pipeline (and related facilities) at
pressures between 1000 and 1400 psig, in the proximity to, and
sometimes traversing, five areas with large and growing industrial/
residential populations. SPLC has been the operator of the pipeline
since its construction in 1979.
The second part of SPLC's proposed demonstration project consists
of the northwestern half (approximately 260 miles) of its Cortez 30''
Carbon Dioxide Pipeline System which transports merchantable-grade
carbon dioxide from Cortez, Colorado across New Mexico to Denver City,
Texas (the demonstration segment terminates near Albuquerque, New
Mexico). This carbon dioxide, in turn, is then used for tertiary oil
recovery in the Denver City area. This proposed test area will assess
the risks surrounding the operation of a 30-inch, carbon dioxide
pipeline (and related facilities) at pressures between 1300 and 2200
psig, where it operates in proximity to five areas with small and
growing residential populations. SPLC has been the operator of the
pipeline since its construction in 1983.
For the test area included in the demonstration program, SPLC
proposes a comprehensive risk management program that will assess all
hazards and risks associated with operation of these pipelines.
OPS is interested in entering into consultations with SPLC because
its risk management program has the potential to:
Explore resource reallocation from lower-risk carbon
dioxide pipeline to higher-risk ethylene;
Evaluate the effect on public safety and environmental
protection caused by resource reallocation within an individual
pipeline system, based on the constantly changing set of internal (i.e.
pressure) and external (i.e. population) conditions; and
Employ the risk management communications initiative to
improve third-party damage prevention and emergency response
coordination.
The proposed SPLC demonstration project also has the potential to
help OPS examine the benefits of risk management as a regulatory
alternative under a variety of conditions because of the following
distinguishing features:
The commodities (ethylene and carbon dioxide);
The location (the demonstration sites cross several
southwestern states, including Colorado, New Mexico, Texas, and
Louisiana);
Technical/regulatory issues (SPLC is considering operating
a section of the carbon dioxide pipeline at a higher pressure than is
currently allowed by the regulations); and
Policy issues (the allocation of resources between high
and low risk pipelines, and between high and low risk sections on the
same pipeline).
Fred Fischer, Manager, Technical Operations Support, leads SPLC's
designated Risk Management team and serves as the central information
contact for the program. He can be reached at Shell Pipe Line
Corporation, Two Shell Plaza, P.O. Box 2648, Houston, Texas, 77252, or
by calling 713-241-0461.
3. Tennessee Gas Pipeline Corporation/East Tennessee Natural Gas
Company (Tennessee/East Tennessee): Tennessee/East Tennessee are
subsidiaries of El Paso Natural Gas Company of Houston, Texas.
Tennessee Gas operates a total of 14,574 miles of both onshore and
offshore pipeline, while East Tennessee Natural Gas operates 1,149
miles of onshore pipeline.
Tennessee/East Tennessee proposes to apply a risk management
approach to its entire system. The company proposes modifying or
eliminating compressor station relief valve testing and inspection
under certain conditions, extending from 18 months to 24 months the
time it is allowed to confirm or revise maximum allowable operating
pressure due to class location changes, reducing the inspection
frequency under certain conditions of certain emergency valves and
regulators, and using new design criteria for increased system
efficiency.
[[Page 53057]]
Tennessee/East Tennessee has also specified locations in western
Pennsylvania, central Tennessee, and offshore Louisiana where it
proposes altering maximum allowable operating pressure to suit local
conditions.
The company believes superior safety can be achieved by enhanced
damage prevention, increased patrolling, the use of internal inspection
tools, and the reallocation of funds to re-habilitation projects on its
higher risk pipeline segments.
OPS is interested in entering into consultations with Tennessee/
East Tennessee because its risk management program has the potential
to:
Provide examples of data collection and analysis tools for
supporting risk management; and
Provide examples of how companies can use risk management
to re-allocate resources to re-habilitation projects and other high
value safety activities.
The proposed Tennessee/East Tennessee demonstration project also
has the potential to help OPS examine the benefits of risk management
as a regulatory alternative under a variety of conditions because of
the following distinguishing features:
Consideration of worker safety as well as public safety in
risk assessment;
Examination of the risk control potential of a number of
existing regulations;
The use of risk-based arguments for establishing MAOP; and
The breadth of the demonstration site (which includes four
OPS regions: Southern, Eastern, Central, and Southwest; and 17 states).
Tennessee/East Tennessee's risk management program coordinator and
point-of-contact is Daron Moore. He can be reached at Tennessee Gas
Pipeline Company, P.O. Box 2511, Houston, TX, 77252-2511, or by calling
(713) 757-4023.
Issued in Washington, DC, on October 6, 1997.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
[FR Doc. 97-26916 Filed 10-9-97; 8:45 am]
BILLING CODE 4910-60-P
