[Federal Register Volume 62, Number 211 (Friday, October 31, 1997)]
[Notices]
[Pages 59024-59026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28959]
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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration
[Docket No. RSPA-97-2707; Notice 2]
Pipeline Safety; Liquefied Natural Gas Facilities, Grant of
Waiver; Applied LNG Technologies
Applied LNG Technologies (ALT) petitioned the Research and Special
Programs Administration (RSPA) for a waiver from compliance with
certain provisions of 49 CFR Part 193 for its Needle Mountain Liquefied
Natural Gas (LNG) storage and truck loading facility at Topock,
Arizona. This facility consists of two, 50,000 gallon LNG storage tanks
and a truck transfer system. The LNG is piped a short distance to a
liquefaction facility owned and operated by a subsidiary of El Paso
Natural Gas. A transmission pipeline, owned by El Paso Natural Gas
Company, supplies Part 192 regulated gas to the El Paso Field Services,
a liquefaction facility. Petitioner alleges that the Needle Mountain
LNG storage and loading facility (NMF) is non-jurisdictional in
accordance with Sections 193.2001(a) and (b)(1) because the facility
would not be transporting natural gas by pipeline, but rather would be
loading LNG into tank trucks for delivery to commercial and industrial
customers. ALT claims that it's NMF is the ultimate consumer of LNG.
On May 16, 1997, the RSPA issued a Interpretation of Part 193 as it
applies to the NMF facility. In that interpretation, RSPA stated that
regardless of who owns or operates different sections of an LNG
facility, it is subject to Part 193 in its entirety. Part 193
encompasses all parts of an LNG facility from the point at which it
receives gas from a Part 192 regulated gas transmission pipeline
through the liquefaction process, storage, and transfer into a motor
carrier vehicle.
Petitioner then requested a waiver from compliance with certain
sections of Part 193 and proposed to ensure equivalent safety through
compliance with the National Fire Protection Association (NFPA)
standard 59A. The specific sections of Part 193 for which Petitioner
sought a waiver are:
(1) Sec. 193.2173--Water Removal: Sec. 193.2173(a) requires that
except for Class 1 systems, impounding systems must have sump pumps and
piping over the dike to remove water collecting in the sump basin.
NFPA 59A section 2-2.2.7 requires either sump pumps or gravity
drainage for water removal, provided there is means to prevent the
escape of LNG by way of the drainage system.
Petitioner's rationale for noncompliance: The impoundment area in
this facility drains to a sump basin. A sump dump is not provided due
to the arid location. In the rare event of rain in Topock, AZ,
Petitioner does not expect to have standing water for any length of
time.
RSPA proposed granting waiver from Sec. 193.2173 only if petitioner
could demonstrate that there would be no standing water (i.e., proving
ground is permeable) in the sump for any significant period.
(2) Sec. 193.2209(b)(2)--Instrumentation for LNG storage tanks: For
LNG tanks with capacity of 70,000 gallons or less, Sec. 193.2209(b)(2)
requires pressure gages and recorders with high pressure alarm.
NEPA 59A 7-2.1 requires only a pressure gage.
Petitioner does not believe that safety has been compromised by
requiring only a pressure gage, because any high pressure in the
storage tank is controlled by a recompressor system within the
``facility'' that maintains the storage pressure at 20 psig. Any
failure of this system places the entire storage facility in a ``fail
safe'' (shut down) mode.
RSPA proposed not granting a waiver from Sec. 193.2209(b)(2)
because, in our view recorders (at the storage tank site and possibly
at the control center) and a high pressure alarm (at the control
center) are essential in the event of the failure of the recompressor
system. Although the entire storage facility will be placed in a shut
down mode, there appears to be no way to prevent pressure from
increasing in the LNG storage tank. This is especially important
because this LNG storage facility will be an unattended operation.
(3) Sec. 193.2321(a)--Nondestructive tests, Circumferential butt
welds: Sec. 193.2321(a) requires that 100 percent of circumferential
butt welded pipe joints in the cryogenic piping and 30 percent of
circumferential butt welded pipe joints in the non-cryogenic piping be
nondestructively tested.
NEPA 59A 6-6.3.2 requires all circumferential butt welds to be
nondestructively tested, except that liquid drain and vapor vent piping
with an operating pressure that produces a hoop stress of less than 30
percent of specified minimum yield stress (SMYS) need not be
nondestructively tested,
[[Page 59025]]
provided it has been inspected visually in accordance with the American
Society of Mechanical Engineers (ASME) standard B31.3, Chemical Plant
and Petroleum Refinery Piping, 344.2.
RSPA considered granting a waiver from 193.2321(a) for the liquid
drain and vapor vent piping with operating pressures that produce hoop
stresses of less than 20 percent SMYS, if that piping complies with the
NFPA 59A 6-6.3.2. We believe that safety is not comprised.
(4) Sec. 193.2321(e)--Nondestructive test, Circumferential and
longitudinal welds in metal shells of storage tanks: Sec. 193.2321(e)
requires 100 percent of both longitudinal and circumferential butt
welds in metal shells of storage tanks that are subject to cryogenic
temperatures, and are under pressure, to be radiographically tested.
NFPA 59A 4-2.2.2 requires welded construction for shell in
accordance with the ASME Code section VIII, and shall be ASME-stamped
and registered with the National board of Boiler and Pressure Vessels
(NBBI)
Petitioner's rationale for requesting a waiver is that safety in
this case is not comprised as storage tanks at NMF facility are small,
shop fabricated, and built to ASME Code. ASME Section VIII is an
accepted standard to which cryogenic pressure vessels are built all
over the world.
RSPA proposed to grant a waiver from Sec. 193.2321(e), because we
believe that safety is not compromised for smaller pressure vessels
(less than 70,000 gallons) which are designed and built to ASME Code
VIII (greater than 15 psig). Tanks built to this code are shop
fabricated under strict quality control and are inspected and stamped
by the Authorized Inspectors of the NBBI. Storage tanks at the NMF
facility are built to ASME code Section VIII and have a capacity of
50,000 gallons (relatively small).
(5) Secs. 193.2329 (a) and (b)--Construction Records:
Sec. 193.2329(a) requires that an operator shall retain records of
specifications, procedures, and drawings consistent with this part, and
Sec. 193.2329(b) requires that an operator shall retain records of
results of tests, inspections and quality assurance program required by
this subpart.
Petitioner requested a waiver for records for design and
manufacture of the pressure vessels, because they are built to the ASME
code as referenced in NFPA 59A. Petitioner would comply with all other
recordkeeping requirements in accordance with Secs. 193.2329 (a) and
(b).
RSPA proposed to grant waiver from Secs. 193.2329 (a) and (b) for
those parts of the NMF facility where the petitioner has requested.
(6) Sec. 193.2431 (c)--Vents: Sec. 193.2431(c) requires that
venting of natural gas/vapor under operational control which could
produce a hazardous gas atmosphere must be directed to a flare stack of
heat exchanger.
NFPA 59A 3-4.5 also requires safe discharge of boil-off and flash
gas to the atmosphere or into a closed system. NFPA 10-12.4.4 requires
that safety relief valve discharge stacks or vents shall discharge
directly into the atmosphere.
Petitioner requested a waiver from Sec. 193.2431(c) which requires
flare stacks. Petitioner's reasons for noncompliance are that (i)
safety relief valves relieve under emergency conditions, and (ii) there
will be no boil-off venting at this facility because LNG storage
vessels are maintained at a storage pressure of 20 psi by a
recompressor system.
RSPA agrees that at the NMF facility recompressor system will
maintain a pressure of 20 psi in the LNG storage tanks. Therefore, no
continuous discharge of boil-off to atmosphere is expected. We believe
that relief valves discharge only under emergency conditions.
Therefore, it is safe to discharge them to the atmosphere through a
stack without flaring. Based on that information, RSPA proposed to
grant a waiver from compliance with Sec. 193.2431(c), as long as relief
valves discharge through stacks were higher than surrounding structures
at this facility.
(7) Sec. 193.2817(b)(2)--Fire Equipment: Sec. 193.2817(b)(2)
requires fire control equipment and supplies to include a water supply
and associated delivery system, if the total inventory of LNG is 70,000
gallons.
NFPA 59A 9-5.1 similarly requires a water system except where an
evaluation in accordance with 9-1.2 indicates the use of water is
unnecessary or impractical. Section 9-1.2 also requires evaluation of
the methods necessary for protection of the equipment and structures
from the effects of fire exposure.
Petitioner requested a waiver from Sec. 193.2817(b)(2), citing
exemption in paragraph 9-5.1 of the NEPA 59A. Petitioner's rationale
for such a waiver was that this facility is remotely located, generally
unattended, and is equipped with fire detection sensors which will
annunciate fire detection to the control center, as well as initiate a
facility shutdown to a fail-safe condition.
RSPA disagreed with Petitioner's rationale that water was
unnecessary and impractical at this facility and proposed not to grant
waiver from Sec. 193.2817(b)(2). RSPA argued that a fire protection
water system was necessary for protection of the components and for
controlling unignited leaks and spills at the NMF facility. RSPA also
believed that providing a water system at this facility was feasible.
After reviewing the petition, the RSPA published a notice inviting
interested persons to comment on this waiver (Notice 1) (62 FR 41993;
August 4, 1997). RSPA received no comments in response to the notice.
On August 12, 1997, two pipeline safety inspectors from the Arizona
Public Utility Commission, one inspector from the Office of Pipeline
Safety (OPS), Southwest Region office and one representative from the
OPS headquarters visited the NMF facility. The purpose of this trip was
to get more facts and discuss the above issues with the representatives
of the ALT, ElPaso Natural Gas Company and its subsidiary. At this
meeting ALT was advised to provide a formal report addressing firewater
requirements and a letter from the NFPA confirming the fact that an
exception to this requirement is allowed when the evaluation required
by Section 9-1.2 of the NFPA 59A indicates the use of water is
unnecessary or impractical. All other issues in this petition were
verified and agreed by all parties.
Subsequently, Petitioner in support of its waiver, has provided:
(1) a report of the ``percolation test'', proving the ground near the
facility is permeable, dated August 12, 1997, prepared by Western
Technologies, Inc.; (2) drawings and data report on ``heat flux
exclusion zones'' and ``Degadis Analysis''; (3) a formal report on
``fire water requirement determination'' dated September 30, 1997,
developed by CH-IV Corporation; and (4) an interpretation letter from
the NFPA dated October 1, 1997.
After a thorough review of the CH-IV Corporation's report, RSPA is
not convinced with the conclusions that the lack of a fire water supply
may not significantly increase foreseeable consequences of fires,
including the failure of components or buildings within the facility.
RSPA notes that the above referenced NFPA interpretation letter
states that Standard 59A permits the use of other fire protection
systems (exclusive of a fixed water system) if an evaluation of the
facility shows that the use of water is unnecessary or impractical. The
NFPA letter further states that fire protection must be provided for
all LNG facilities, and that water is the preferred
[[Page 59026]]
fire protection agent, but it is not mandated. The CH-IV report on the
need for LNG fire fighting protection systems at the ALT facility
describes fire detection, equipment shutdown and control systems.
However, it does not address what other fire protection systems (in
lieu of fixed water system) be utilized to prevent fire from spreading.
Thus, it does not satisfy paragraph 9-1.2(c) of NFPA 59A, which states
``The methods necessary for protection of the equipment and structures
from the effects of fire exposure.'' RSPA has also concerns about
safety of the Mojave Compressor Station (MCS) and its day-shift
personnel. According to ALT's drawings MCS lies clearly within the
``lower explosive limit'' of the ALT facility. Therefore, it lies
within the perimeter where fire could occur as result of vapor
dispersion.
Based on the above discussion, RSPA is not granting a waiver from
the firewater requirements in Sec. 193.2817(b)(2). RSPA, however, may
consider any other alternative fire protection systems satisfying
Section 9-1.2(c) of NFPA 59A.
Except for the sections for which RSPA is granting a waiver, this
LNG facility must meet all the other requirements of Part 193. For the
sections for which RSPA is granting a waiver, RSPA believes that the
granting of a waiver from these requirements would not be inconsistent
with pipeline safety, as long as Petitioner follows alternative
provisions in the NFPA 59A. Therefore, ALT's petition for waiver from
compliance with above specified sections of 49 CFR 193 is granted,
effective October 31, 1997.
Authority: 49 App. U.S.C. 2002(h) and 2015; and 49 CFR 1.53.
Issued in Washington, D.C. on October 27, 1997.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
[FR Doc. 97-28959 Filed 10-30-97; 8:45 am]
BILLING CODE 4910-60-M
