[Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
[Notices]
[Pages 58605-58611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29367]
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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration (RSPA), DOT
[Docket No. PS-142; Notice 3]
Program Framework for Risk Management Demonstrations
AGENCY: Office of Pipeline Safety, DOT.
ACTION: Notice and announcement of public meeting.
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SUMMARY: The Research and Special Programs Administration's (RSPA)
Office of Pipeline Safety (OPS) is considering a program framework for
its Pipeline Risk Management Demonstration Program required by the
Accountable Pipeline Safety and Partnership Act of 1996. The
Demonstration Program will invite pipeline operators to propose risk
management projects for one or more parts of their pipeline systems
that, upon approval by OPS, will substitute for the existing Federal
safety standards in providing the basis for Federal oversight of
pipeline safety and environmental protection. This document describes
the Demonstration Program, the activities already underway to prepare
for it, and the next steps in the process; describes the objectives to
be achieved by the demonstration projects; provides needed guidance for
pipeline operators who may wish to participate; and invites public
involvement in the process through various opportunities for public
comment and public meetings. A separate document, the Interim Risk
Management Program Standard, provides specific direction to interested
operators on developing risk management programs, including the
projects in this Demonstration Program.
DATES: Meetings. (1) January 28, 1997, from 8:00 a.m. to 5:00 p.m. in
New Orleans, Louisiana--public meeting. For more information, contact
Janice Morgan at (202) 366-2392.
(2) Through approximately March 31, 1997, at individual pipeline
operators' sites--informational meetings with OPS. For more
information, contact Bruce Hansen at (202) 366-8053.
Written comments. (3) Written comments on this notice should be
submitted on or before (Insert 60 days from publication date).
(4) Written comments on the Interim Risk Management Program
Standard
[[Page 58606]]
(available on the World Wide Web at http://ops.dot.gov, by contacting
Doug Read at (202) 682-8588, or through the DOT docket associated with
this notice) should be submitted to Mr. Read at the American Petroleum
Institute (API) on or before (Insert 30 days from publication date).
For more information, contact Mr. Read at (202) 682-8588.
ADDRESSES: Meetings. (1) The public meeting will be held at the New
Orleans Hilton Riverside Hotel, Poydras at the Mississippi River, New
Orleans, Louisiana, 70140.
(2) Informational meetings between OPS and operators are typically
held at each company's office.
Written Comments. (3) Send comments on this notice in duplicate to
the Dockets Unit, Room 8421, Research and Special Programs
Administration, U.S. Department of Transportation, 400 Seventh Street,
SW, Washington, DC 20590-0001. Identify the docket and notice number
stated in the heading of this notice. Persons wishing to receive
confirmation of receipt of their comments should include a self-
addressed, stamped postcard. All comments and docketed material will be
available for inspection and copying in room 8421 between 8:30 a.m. and
5 p.m. each business day. Contact the Dockets Unit, (202) 366-5046, for
docket material.
(4) Send comments on the Interim Risk Management Program Standard
to Doug Read, American Petroleum Institute, 1220 L Street, NW,
Washington, DC, 20005. Comments sent to Mr. Read will be available for
inspection and copying through the DOT docket associated with this
notice.
FOR FURTHER INFORMATION CONTACT: Elizabeth M. Callsen, Office of
Pipeline Safety, Research and Special Programs Administration, U.S.
Department of Transportation, 400 Seventh Street, S.W., Washington D.C.
20590-0001, telephone 202-366-4572.
SUPPLEMENTARY INFORMATION:
I. Overview
Section 5 of the Accountable Pipeline Safety and Partnership Act of
1996 (Pub. L. 104-304, Oct. 12, 1996) requires OPS to establish the
Pipeline Risk Management Demonstration Program and sets forth
requirements for carrying out risk management projects. In a memorandum
issued when the statute was enacted, the President directed the
Secretary of Transportation to use his discretion to administer the
Demonstration Program with certain safeguards in place. The safeguards
identified in the President's memorandum to the Secretary include
making provisions for:
Accepting projects that can achieve superior public safety
and environmental protection.
Enabling full and meaningful participation by affected
communities and constituencies in risk management project approval.
Using orders ensuring that the requirements of risk
management projects are subject to full enforcement authority.
Limiting the number of demonstration projects to ten (10).
Limiting participation to operators with clear and
established records of compliance with respect to safety and
environmental protection.
The statutory requirements, the President's memorandum to the
Secretary, comments on previous framework concepts (published in 60 FR
49040, September 21, 1995, and 60 FR 65725, December 20, 1995), and
other stakeholder input were used to develop the present framework,
which provides guidance to operators who may decide to participate in
the demonstration projects that are expected to begin in 1997.
Risk management can provide pipeline owners and operators greater
flexibility in their choice of safety-related activities than is
possible within OPS's present universally applicable regulatory
program. Risk management enables a company to customize its safety
program to address its pipeline's particular risks. Furthermore, risk
management is a dynamic process, with built-in features for evaluating
and improving safety activities as experience is gained.
The demonstration projects will test whether allowing operators the
flexibility to allocate safety resources through risk management is an
effective way to improve safety, environmental protection, and
reliability. They will also provide data on how to administer risk
management as a permanent feature of the Federal pipeline safety
program, should risk management prove to be a viable regulatory
alternative. The new standards, technologies, and communication
processes developed by operators and OPS for the risk management
demonstration projects will be adapted to support the range of risk-
based regulatory, compliance, and research and development activities
OPS presently has under development.
OPS expects that risk management methods and the formalized process
of interactions and negotiation between regulators and company
personnel will result in superior public safety and environmental
protection than could otherwise be attained through existing regulatory
requirements. Risk management is, by OPS definition, a more systematic
and thorough assessment of risk and risk control options, with the
intended result of superior decision making. As a result of improved
assessment, OPS believes there is a potential to identify more risk
than may have been found using existing practices.
OPS plans to select companies for demonstration projects with a
demonstrated commitment (1) to work in partnership to evaluate merits
of risk management processes and technologies and (2) to develop risk
management as an integral part of company day-to-day business
practices, at least related to the demonstration project. The selection
criteria favors projects showing potential for more comprehensive risk
management applications. All participants will be focused on improving
safety and environmental results, prioritizing resources more
effectively, and enhancing the ability of government and industry to
effect positive outcomes. OPS will have clear profiles of its
assessment of pipeline integrity before and after the demonstration
program. At the program conclusion, OPS fully expects to have a better
understanding of individual pipeline risks and to be in a better
position to evaluate risk control options.
Finally, OPS expects risk management to be able to provide better
accountability for safety and environmental protection, and a better
basis to communicate with the public. To assure that safety and
environmental protection improve, OPS will measure local, project-
specific data such as current physical data, new test data, comparison
with similar segments, outcomes from risk control actions, precursor or
``anticipative`` event measures, level of risk awareness, history of
service interruptions and incident data. OPS also expects to measure
improvements in communications, understanding, and resulting increased
ability of government and industry to effect desired safety and
environmental project outcomes. OPS and operators participating in the
Demonstration Program will report to the public periodically during the
four year period.
OPS will be accepting into the Demonstration Program those
projects, as proposed or ultimately negotiated, that are expected to
achieve superior public safety and environmental protection than is
currently being achieved through regulatory compliance. Because of the
nature of the risk management process, OPS believes
[[Page 58607]]
that operators choosing to participate will be able to propose projects
demonstrating such protection.
Each demonstration project is expected to have a four-year
duration. Participation in risk management demonstrations will be
voluntary and subject to OPS approval based on criteria set forth later
in this notice. Eligibility for the demonstration projects beginning in
1997 is limited to interstate natural gas transmission and hazardous
liquid pipeline companies. RSPA may later broaden eligibility to
include distribution and other intrastate operators.
II. Activities Presently Underway and Next Steps
The December 20, 1995, Federal Register notice gave the background
for OPS's consideration of company-specific risk management projects as
an alternative to the existing regulations. The notice described many
of the safety, environmental, legislative, technical, public
perception, and economic factors driving government, corporate, and
public interest in risk management.
Since December 1995, OPS has been working with ``joint risk
management quality teams'' (JRAQT) composed of representatives of state
pipeline regulatory agencies, the oil and gas industries, and local
public safety and environmental representatives to develop the five
primary components of the Pipeline Risk Management Demonstration
Program. These components include the Interim Risk Management Program
Standard, the guidance for assessing risk management as a regulatory
alternative using general industry data, the training protocols for
instructing government and corporate participants about their new roles
under risk management, a plan for productive communication between all
participants and the public, and the regulatory framework presented in
this notice. The standard and the regulatory framework are now ready
for public comment. The guidance for assessing risk management as a
regulatory alternative will be ready for public comment in November.
The Interim Risk Management Program Standard will serve as a common
ground upon which the pipeline industry can develop and refine
effective risk management demonstration projects that regulators can
approve and monitor. It defines certain elements that all programs
should contain, but allows flexibility to each company to customize its
project to fit its particular needs and corporate practices, and allows
projects to evolve as experience is gained. The standard will also
provide companies guidance for selecting performance measures to ensure
that safety and environmental protection are safeguarded in
demonstration projects. Directions for obtaining and commenting on the
standard are at the front of this notice.
The regulatory framework component presented in this notice guides
pipeline companies in how they can gain OPS approval of their risk
management projects and describes how OPS would monitor the plans. The
framework presented here will guide the demonstration projects that
begin in 1997. The experience gained from the demonstration projects
will help OPS to later develop a permanent procedure for approving risk
management projects, if risk management proves to be a viable
regulatory alternative. Directions for public comment on the regulatory
framework are also at the front of this notice.
To help ensure that the Demonstration Program components provide
the flexibility to fairly and consistently evaluate and support actual
risk management projects, OPS has been conducting a series of meetings
with individual operators since August 1996. The topics of discussion
include risk management projects the operator has in place or under
consideration and criteria OPS might use to evaluate them. During the
meetings, operators also learn about and comment on the Demonstration
Program components under development. Companies interested in such a
meeting should see the front of this notice for contact information.
OPS has held two public meetings on risk management demonstration
projects and will hold a third on Tuesday, January 28, 1997, in New
Orleans, Louisiana (see the front of this notice for scheduling and
lodging information). At that meeting, OPS and the JRAQT will present
the Interim Risk Management Program Standard that operators will use
during the demonstration projects. OPS will also present prototype risk
management projects to illustrate the documentation needed and the
types of issues to be addressed during project review, approval and
monitoring. After the meeting, OPS will publish a Federal Register
notice to begin the project approval process described in Section IV of
this notice. Between now and the January meeting, OPS will continue to
refine the Demonstration Program components based on public comment on
this notice, meetings with individual operators, national public,
environmental and other interested organizations, and continued
interaction with industry and the States through the JRAQT teams.
III. Risk Management Demonstration Project Objectives and Policies
The objectives of the Pipeline Risk Management Demonstration
Program, which stem from the statutory requirements and the
Presidential directive, are to accomplish the following:
To show that more effective allocation of resources can
result in improved safety and environmental protection over what is
presently achieved through regulatory compliance.
To address risks not addressed by regulations by
capitalizing on features inherent to the risk management process, such
as improved quality and integration of safety data and, as a result,
more comprehensive assessment of threats.
To systematically test risk management as a regulatory
alternative through objective evaluation under a broad range of
conditions.
To establish a common framework for productive
communication with public safety officials and the public, and for
getting meaningful public input into the risk management process.
To develop and apply new risk assessment models, processes
and technologies.
OPS believes that the following elements need to be structured into
the Demonstration Program:
(1) Operators participating in the Pipeline Risk Management
Demonstration Program will need to provide sufficient data and
background information to enable OPS to determine whether risk
management is an effective regulatory alternative that provides
superior safety and environmental protection.
Implicit in a company's participation in the Demonstration Program
should be the commitment to work in partnership with OPS to determine
whether and how risk management might become a permanent feature of the
Federal pipeline safety program. OPS will ask for evidence that risk
management, as it relates to the proposed demonstration project, is or
will be developed and implemented as an integral part of the day-to-day
business practices of the company. OPS will also periodically ask
companies for suggested refinements to the primary program components.
In keeping with the Interim Risk Management Program Standard, the
operator must identify project-specific performance measures that
demonstrate the effectiveness of the risk-control decisions being made.
During the project approval process, OPS will
[[Page 58608]]
determine whether these local project-specific performance measures
appear appropriate and adequate. Throughout a demonstration project,
the operator will evaluate local and broader program measures and
ensure that the performance measures are appropriate and adequate. The
operator would periodically report on these project-specific
performance measurements to OPS.
OPS is developing guidance for additional more general measures
operators would report during the four-year demonstration period to
enable OPS to determine the effectiveness of risk management as a
regulatory alternative. These measures will help OPS answer the
following questions:
Does risk management result in a greater safety,
environmental protection, and service reliability than would otherwise
be achieved through compliance with the safety regulations?
Are resources being better prioritized and more
effectively applied under risk management?
Has agency and industry involvement in the discussion of
risks and risk control options, and the agency and industry's ability
to impact desired outcomes, increased under risk management?
(2) Operators will be allowed to reallocate resources geographically,
as long as safety is adequately safeguarded at each location along a
demonstration site.
OPS will allow operators the flexibility in a risk management
demonstration project to reallocate safety resources across several
pipeline segments. An operator may substitute one or more activities
for others, or do away with redundant activities altogether, as long as
the basic safety and environmental protection along the pipeline is
safeguarded at each point. However, it is still expected that the
overall demonstration project performance will result in superior
safety and environmental protection.
(3) OPS will consider approving demonstration projects of various
scopes and complexities.
The scope of a risk management demonstration project may be an
entire pipeline system and all safety activities, or may be focused on
parts of a system and specific activities.
Since operators have different levels of experience with, and
confidence in, risk management, OPS expects some proposals to begin
with approaches that are limited in scope. Therefore, an operator may
propose a phased entry into a demonstration project, broadening the
scope of the project as experience is gained. During the project
approval process, OPS will favor projects showing a potential for
expansion and more comprehensive application of risk management. OPS
expects to work with companies to develop a profile which compares the
demonstration site to the rest of the pipeline.
OPS recognizes that significant benefits can accrue from even the
less sophisticated applications of risk management. Because no single
risk management approach will be universally appropriate for every
situation, OPS is looking for those that match the level of risk
management with the complexity of the risks being managed. However, any
operator who participates in the Demonstration Program must have in
place the program elements defined in the Interim Risk Management
Program Standard. The program elements provide the structure for the
limited scope proposal.
When an operator proposes risk control alternatives to implement
during a demonstration project, the operator should demonstrate a
knowledge and understanding of the range of risks along the
demonstration site and show that it has considered significant failure
modes. An operator may draw on corporate experience, skills, and
available documentation to support the proposed alternatives.
(4) OPS considers an operator's compliance with the provisions of an
OPS-approved risk management project to be an equivalent and acceptable
alternative to compliance with the regulations.
OPS considers the provisions of an approved risk management project
to be a regulatory commitment. The terms and conditions of the project
will be incorporated into an order that is subject to enforcement
authority. By this order, an operator conducting risk management
activities in an approved project will be exempt from regulations
corresponding to the stated scope of the project, but will be required
to comply with the provisions of the project. An operator not complying
with the provisions of its OPS-approved project will be subject to the
same civil penalties administered under existing regulations.
OPS has the authority to exempt, by order, an owner or operator
participating in a risk management demonstration project from all or a
portion of the regulatory requirements, and from any new regulations,
applying to the covered pipeline facility. OPS could issue orders
exempting participating operators from any but the reporting
requirements in 49 CFR Parts 192 or 195, but expects that the projects
approved in 1997 will require exemptions from only one or a portion of
the regulations.
When the project concludes at the end of four years, or if it is
terminated earlier, consideration will be given to installations or
facility modifications made during the demonstration project that
conflict with existing or future regulatory actions. Actions taken by
the operator in good faith in an approved risk management project could
be ``grandfathered`` and exempt from future regulatory compliance,
provided safety and environmental protection are not compromised.
(5) The Operator Is Responsible for Active Communication With State and
Local Officials Regarding Risk Management. OPS Will Ensure That Such
Communication Is Part of the Operator's Demonstration Project Plan and
That the Communication Is Carried Out.
OPS sees potential for risk management to provide better
accountability to the public for safety and environmental programs. OPS
is beginning to explore appropriate strategies for productive
communication with public safety officials and the public, and for
getting meaningful public input into the risk management process.
Similarly, OPS realizes the importance of training and other
information exchange in supporting the institutional change that would
occur under risk management.
Companies must establish appropriate dialogue with state and local
public safety and environment officials. At a minimum, these public
officials should be aware that a risk management demonstration project
is underway on the pipeline, that OPS is monitoring the project, and
who functions as a point-of-contact. Such a dialogue would enable local
officials to reassure the public that an appropriate regulatory
presence is in place and how the overall safety and environmental
protection are enhanced by risk management. OPS will discuss external
communications with the operator during a consultation prior to formal
application.
IV. Process for Selecting Projects
OPS is providing the following as guidance for operators to seek
approval of their risk management demonstration projects. OPS plans to
formally solicit operators to voluntarily participate in the risk
management demonstration projects via a Federal Register Notice in
first quarter 1997. That notice will give
[[Page 58609]]
target dates for the various steps described below.
(1) Letter of Intent
Operators would notify OPS of interest in participating in a
demonstration project, and OPS would screen operators to ensure that
only companies whose demonstration project concepts have a reasonable
likelihood of being approved expend the resources to develop formal
applications. OPS will screen Letters of Intent to identify no more
than ten projects as candidates for selection in the Demonstration
Program. Ten is the maximum number OPS can reasonably expect to
evaluate and, if selected, to monitor. OPS would accept Letters of
Intent during a 60-day window in early 1997. A Letter of Intent is an
expression of a company's interest, but does not obligate a company to
participate in a demonstration.
OPS would require that a demonstration project cover any part or
all of a pipeline system that is covered by either 49 CFR Part 192 or
195, is under federal oversight or oversight by a participating
interstate agent, and is currently in operation or under conversion to
service. Operators should commit to a project duration of at least four
years, and provide evidence that they will address all considerations
raised in the Interim Risk Management Program Standard. This includes
providing a description of the means by which the company would
communicate with local officials regarding its demonstration project.
OPS would like to choose operators who provide evidence of
consistent corporate commitment to risk management. This could be
demonstrated by a corporate officer, who controls the resource
allocation for the demonstration project and competing operations,
signing the Letter of Intent.
The Letter of Intent would include a general discussion of risk
management principles as part of a company's operating philosophy. To
provide OPS adequate data to choose a diverse set of demonstration
projects, the Letter would provide a brief system profile of the
pipeline, including product(s) transported, pipeline age and operating
history, types of population distributions and geographic conditions in
proximity of the pipeline, and any other features the operator thinks
are notable. The Letter would also describe the scope of the project as
defined per the Interim Risk Management Program Standard and any new
technologies and processes to be developed or deployed during the
demonstration phase.
In making its choice, OPS would consider those operators who have
clear records of safety and environmental compliance, based on OPS
records and consultation with other interested agencies. OPS will also
limit selection to projects which would achieve superior safety and
environmental protection. Operators should have completed any OPS-
initiated corrective actions.
OPS will publish for public comment a Federal Register notice
describing proposals of selected companies and the demonstration sites
under consideration. OPS will also follow through with national public,
environmental and other interested organizations about the sites under
consideration so that local officials can be notified and informed.
(2) Consultation
OPS would invite each operator submitting a promising Letter of
Intent to a consultation within 60 days of receipt of the Letter of
Intent. The purpose of the consultation would be to familiarize OPS and
affected States with specific aspects of an operator's risk management
project concept, to provide guidance to the operator on what
refinements (if any) are needed for OPS to approve the concept as a
demonstration project, to enable regulators to plan the expected level
of monitoring based on the company's own audit process, and to enable
regulators and the operator to agree on the roles and responsibilities
of each throughout the project duration. OPS intends that the
consultation begin a negotiation process that results in a
demonstration project that OPS could approve.
OPS will provide notification that encourages local officials and
the public with questions about demonstration projects to raise them
with state pipeline safety officials who can raise them in the
consultation process.
OPS would constitute a Project Review Team (PRT) to consult with
the operator, keep abreast of any subsequent discussions, and provide
technical input on whether a demonstration project could be approved.
OPS would customize the make-up of each PRT to the company and project.
The PRT members`` roles would be defined in OPS-developed protocols,
designed to ensure rigorous yet fair and consistent treatment of all
operators throughout plan negotiation, approval, and monitoring. The
mix of states and OPS regional personnel on the PRTs, as well as any
outside technical expertise consulted, would vary from project to
project depending on the demonstration's technical focus and geographic
location. Some of the same OPS headquarters staff would be on all PRTs
to ensure consistent application of policy throughout the project and
to follow all issues raised during the consultations to their
resolution.
The consultation would focus on the design, operations, and
maintenance practices that would replace practices required by 49 CFR
Part 192 or 195, and that would achieve superior overall safety and
environmental protection. The operator would provide the rationale for
these risk control alternatives by generally describing the specific
risk management models, processes, and sources of data supporting their
selection.
Other consultation discussion topics would include the program
goals, the project scope defined per the Interim Risk Management
Program Standard, the project-specific performance measures, the
operator's auditing plan, a plan for OPS audits, proprietary issues,
provisions for public communication, and the outline for a work plan
including benchmarks, risk assessment processes, new technologies
applied, points-of-disclosure, and mechanisms for monitoring and
refinement.
(3) Formal Application and Approval
An operator would submit an application formally indicating its
intent to enter into a risk management demonstration project.
Consistent with the program standard's intent for an efficient
information flow among appropriate stakeholders, a summary of this
formal application would be published in the Federal Register, and the
application itself would be made available for review and comment in
the docket. OPS will again communicate with national public,
environmental and other interested organizations about the sites in
which we intend to approve demonstration projects so that local
officials can be notified and informed.
The formal application, including a detailed work plan, would
document operator/PRT resolution of issues raised during the
consultation and any subsequent discussions. It would also provide
assurance of a corporate commitment to implement the project in
accordance with the operator's risk management application. Other
issues may be included at the operator's discretion, such as how to
return to compliance with the regulations should a demonstration be
terminated.
OPS would review the application and comments, and decide whether
to approve the project. If OPS decides to approve the project, OPS
would issue the operator a written order. The order,
[[Page 58610]]
in addition to exempting an operator from the applicability of
specified pipeline safety regulatory requirements for the period of the
demonstration, would set forth the terms and conditions for the
operator's participation in the demonstration project. The order would
be enforceable.
(4) Implementation
A risk management project would start as soon as OPS approves the
formal application and work plan, issues the order, and notifies the
public through the Federal Register that the order is in effect.
Regulators and operators would monitor risk management demonstration
projects for compliance with the order. OPS would provide each
participating operator with a plan describing the regulators`` expected
level of effort in monitoring the demonstration, including the type of
audits, their frequency, the participants, the audit scope, and the
operator's means of addressing those aspects of the demonstration site
remaining in compliance with the regulations, but this plan would not
limit OPS's statutory authority to inspect a pipeline facility during
the period of the demonstration. Planned OPS audits would coincide with
the operator's data taking at key decision points, such as when the
operator evaluates the effectiveness of safety activities or considers
modifying safety activities.
An operator would notify OPS of any intent to make substantive
modifications to the risk management project once a demonstration is
underway. The PRT may reconvene to renegotiate project approval or to
resolve other significant issues. Provisions will be made for public
review and comment on renegotiated projects.
OPS could, through appropriate administrative action, address any
unsafe conditions that arise during the demonstration period to ensure
that such conditions are quickly addressed. OPS would also administer
civil penalties within the provisions of the existing regulations for
operators not complying with the order.
(5) Termination
OPS intends that, where a risk management demonstration project is
determined to have been successful, the operator could, in lieu of
switching to compliance with the regulations, continue to exercise risk
management on that part of the system that was covered by the
demonstration. However, this determination could not be made until the
end of the demonstration period. Upon conclusion of the project, or if
it is terminated earlier, consideration would be given to installations
or facility modifications made during the demonstration project that
conflict with future regulatory actions.
OPS may consider terminating a demonstration project if:
(i) The operator requests termination due to changed circumstances;
(ii) The operator does not comply with the terms and conditions of
the approved risk management project;
(iii) Safety has been compromised; or
(iv) OPS and the operator fail to agree on a substantive
modification to a risk management project.
V. Summary of Means of Achieving Meaningful Public and Community
Involvement
OPS is providing numerous opportunities for public participation in
the design and implementation of the Pipeline Risk Management
Demonstration Program. One of OPS's objectives for the demonstrations
is to establish a common framework for productive communication with
public safety officials and the public, and for getting meaningful
public input into the risk management process. OPS believes meaningful
public input is essential if the demonstrations are to be successful.
The public was invited to comment on early regulatory framework
concepts via Federal Register notices published in 60 FR 49040,
September 21, 1995, and 60 FR 65725, December 20, 1995. OPS is
soliciting public comment on the latest framework concepts via this
notice. In addition to the notices, OPS has held two public meetings in
preparation for the demonstrations and has scheduled a third for
January 28, 1997, in New Orleans, LA. The previous public meetings were
held on November 7, 1995, in McLean, Virginia, and on April 14-15,
1996, in Houston, TX. At the third meeting, OPS plans to present the
final framework and supporting documents, and to demonstrate the review
and approval process using prototype risk management projects.
This notice directs interested members of the public to the docket,
to the American Petroleum Institute (API), or to a website to obtain
and comment on the latest draft of the Interim Risk Management Program
Standard. The standard describes the elements that OPS, its state
partners, and industry agree must be common to all demonstration
projects. One requirement is an external communications element, in
which regulator and other stakeholder interests and concerns are
understood, and program goals and results are communicated to and
discussed with the public, as well as Federal, state, and local
regulators, and other stakeholders as appropriate. The docket
associated with this notice will have available for review any comments
received on the standard and on the regulatory framework.
This notice also describes the numerous opportunities OPS is
offering the public for comment during the demonstration review and
approval process. Before formal applications are due, OPS will publish
for public comment a Federal Register notice describing the
demonstration projects under consideration and each company's concept
for communicating with local safety officials should OPS approve its
demonstration project. The public will be noticed again once the formal
application is received and approval is imminent. At this time, a
summary of the formal application will be published in the Federal
Register, and the application itself will be made available for review
and comment through the docket. At each opportunity for notice in the
Federal Register, OPS will communicate with national public,
environmental and other interested organizations about the sites under
consideration so that local officials can be notified and informed
about planned program activities.
Affected states will be a part of the Project Review Team (PRT)
recommending whether or not OPS should approve a demonstration project.
OPS will provide notification that encourages local officials and the
public with questions about demonstration projects to raise them with
state pipeline safety officials who can raise them with the PRT.
OPS and industry's communications effort focusing on public and
environmental officials and other interested organization
representatives is intended to provide these officials with adequate
information to reassure the public that an appropriate regulatory
presence is in place during the demonstrations, and to describe how
safety and environmental protection will be enhanced by risk
management. OPS would appreciate comments on whether these mechanisms
are adequate to ensure public and community involvement, and if not,
what OPS and operators choosing to participate in the demonstration
projects can do to achieve such involvement.
VI. Report to Congress
By March 31, 2000, OPS will submit a Report to Congress on the
results of the demonstration projects, evaluating how effectively
safety, environmental
[[Page 58611]]
protection, and reliability have been improved by participating
operators, the feasibility of risk management in general, and
recommending whether and in what form risk management should be
incorporated into the Federal pipeline safety program on a permanent
basis.
Issued in Washington, DC, on November 8, 1996.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
[FR Doc. 96-29367 Filed 11-14-96; 8:45 am]
BILLING CODE 4910-60-P
