[Federal Register Volume 63, Number 247 (Thursday, December 24, 1998)]
[Notices]
[Pages 71334-71340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34145]
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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration (RSPA), DOT
[Docket No. RSPA-98-4450; Notice 17]
Pipeline Safety: Intent To Approve Project and Environmental
Assessment for the Chevron Pipe Line Company; Pipeline Risk Management
Demonstration Program
AGENCY: Research and Special Programs Administration, Office of
Pipeline Safety, DOT.
ACTION: Notice of Intent to Approve Project and Environmental
Assessment.
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SUMMARY: As part of its Congressional mandate to conduct a Risk
Management Demonstration Program, the Office of Pipeline Safety (OPS)
has been authorized to conduct demonstration projects with pipeline
operators to determine how risk management might be used to complement
and improve the existing Federal pipeline safety regulatory process.
This is a notice that OPS intends to approve Chevron Pipe Line Company
(Chevron) as a participant in the Pipeline Risk Management
Demonstration Program. This also provides an environmental assessment
of Chevron's demonstration project. Based on this environmental
assessment, OPS has preliminarily concluded that this proposed project
will not have significant environmental impacts.
This notice explains OPS's rationale for approving this project,
and summarizes the demonstration project provisions that would go into
effect once OPS issues an order approving Chevron as a Demonstration
Program participant. OPS seeks public comment on the proposed
demonstration project so it may consider and address these comments
before approving the project. The Chevron demonstration project is one
of several projects OPS plans to approve and monitor in assessing risk
management as a component of the Federal pipeline safety regulatory
program.
ADDRESSES: OPS requests that comments to this notice or about this
environmental assessment be submitted on or before February 8, 1999, so
they can be considered before project approval. However, comments on
this or any other demonstration project 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, or you can E-Mail your
comments to ops.comments@rspa.dot.gov. Comments should identify the
docket number RSPA-98-4450. Persons should submit the original comment
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 9:00 a.m. to 5:00 p.m., Monday
through Friday, except on Federal holidays.
[[Page 71335]]
FOR FURTHER INFORMATION CONTACT: Elizabeth Callsen, OPS, (202) 366-
4572, regarding the subject matter of this notice and environmental
assessment. Contact the Dockets Unit, (202) 366-9322, for docket
material. Comments may also be reviewed on line at the DOT Docket
Management System website at http://dms.dot.gov/.
SUPPLEMENTARY INFORMATION:
1. Background
The Office of Pipeline Safety (OPS) is the federal regulatory body
overseeing pipeline safety. As a critical component of its mandate, OPS
administers and enforces a broad range of regulations governing
pipeline safety and environmental protection of pipelines. These
regulations have contributed to a good pipeline industry safety record
by ensuring that risks associated with pipeline design, construction,
operations, and maintenance are understood, managed, and reduced.
Preserving and improving this safety record is OPS's top priority.
On the basis of extensive research, and the experience of both
government and industry, OPS believes that a risk management approach,
properly implemented and monitored, offers opportunities to achieve:
(1) Superior safety, environmental protection, and service
reliability;
(2) Increased efficiency and reliability of pipeline operations;
and
(3) Improved communication and dialogue among industry, the
government, and other stakeholders.
A key benefit of this approach is the opportunity for greater
levels of public participation.
As authorized by Congress, OPS is conducting a structured
Demonstration Program to evaluate the use of a comprehensive risk
management approach in the operations and regulation of interstate
pipeline facilities. This evaluation will be performed under strictly
controlled conditions through a set of demonstration projects to be
conducted with interstate pipeline operators. A Presidential Directive
to the Secretary of Transportation (October 12, 1996) stated that in
implementing the Pipeline Risk Management Demonstration Program: ``The
Secretary shall require each project to achieve superior levels of
public safety and environmental protection when compared with
regulatory requirements that otherwise would apply.'' Thus, the process
to select operators for the Demonstration Program involves a
comprehensive review to ensure that the proposed project will provide
the superior safety and environmental protection required by this
Directive. OPS may exempt a participating operator from particular
regulations if the operator needs such flexibility in implementing a
comprehensive risk management program; however, regulatory exemption is
neither a goal nor requirement of the Demonstration Program.
This document summarizes the key points of this review for
Chevron's demonstration project, and evaluates the safety and
environmental impacts of this proposed project.
2. OPS Evaluation of Chevron Demonstration Project Proposal
Using the consultative process described in Appendix A of the
Requests for Application for the Pipeline Risk Management Demonstration
Program (62 FR 14719), published on March 27, 1997, OPS has reached
agreement with Chevron on the provisions for a demonstration project on
a 330-mile portion of Chevron's Salt Lake Products Pipeline System.
Company History and Record: The Salt Lake Products Pipeline System
is, on average, 41 years old. It is composed of 706 miles of pipeline
right-of-way that originates at Chevron's Salt Lake City refinery and
distributes refined product (gasoline, diesel, jet fuel) throughout the
States of Utah, Idaho, Oregon, and Washington. Construction of the
first leg from Salt Lake City, Utah, to Twin Falls, Idaho, was
completed in 1949. Expansion of the system in the 1950's and 1960's
extended the system to Boise, Idaho; Pasco, Washington; and Spokane,
Washington. Major lateral supply lines include lines to Pocatello,
Idaho, and the Salt Lake City Airport. Chevron is proposing the 330-
mile portion of the system from Salt Lake City, Utah to Boise, Idaho as
its demonstration site. Chevron is headquartered in San Ramon,
California, and has a Salt Lake Products support office in Salt Lake
City, Utah.
Before entering into consultations with Chevron, OPS determined
that Chevron was a favorable candidate for the Program after examining
the company's safety and environmental compliance record, its accident
history, and its commitment to working with OPS to develop a project
meeting the Demonstration Program goals. The Salt Lake Products
Pipeline System has experienced five reportable releases since 1990.
Two of these releases were caused by damage from third parties
excavating near the line; two events resulted from external corrosion;
and the final release was due to a welding defect. The volume of
product released from the line in each instance was relatively small--
the largest being a release of approximately 365 barrels of jet fuel
that occurred after an excavator pierced the line. The other four
releases ranged from 88 barrels to 200 barrels. OPS was satisfied with
the remedial actions undertaken in response to the two corrosion
accidents. One involved localized corrosion due to a casing under a
highway crossing. Chevron replaced the corroded pipe and eliminated the
casing to prevent future reoccurrence. The other resulted from general
external corrosion. After conducting an internal inspection of the
pipeline, Chevron replaced all corroded pipe in the vicinity of the
leak. None of the five releases resulted in injuries to pipeline
personnel or members of the public, or caused a fire or explosion. The
environmental impacts in each case were localized. The sites were
cleaned to the satisfaction of regulatory agencies, and caused no
permanent environmental damage.
The most recent significant accident on any Chevron pipeline
occurred on the KLM Crude System on March 11, 1995. Four thousand
barrels of crude oil were spilled into the Arroyo Pasajero near
Kettleman City, California, when an upstream bridge collapsed during a
100-year flood and the resulting debris damaged the pipeline. No deaths
or injuries resulted from the pipeline accident, although crop damage
did occur. Following its accident investigation, the California State
Fire Marshal (acting as an OPS state agent) cited Chevron for failure
of the pipeline controller to take timely action. Chevron has replaced
the segment of pipeline, burying it over 20 feet beneath the bottom of
the channel where it can not be affected by future flooding. Chevron
has also modified training procedures and retrained appropriate
personnel in response to the State Fire Marshal's findings.
OPS believes that the actions Chevron has taken to address the
specific causes of these accidents, together with Chevron's existing
risk management program, are adequate responses to the incidents and
demonstrate a continued commitment to safety. An important feature of
Chevron's risk management program is the systematic approach Chevron
employs to ensure that lessons-learned from any accident or unplanned
event are considered in future risk assessments. Chevron begins its
scenario based risk assessment of a pipeline system by considering a
standard checklist of initiating events, which is constantly updated to
reflect all known causes of accidents on any Chevron pipeline. In
choosing risk control activities, Chevron carefully
[[Page 71336]]
considers consequences of past accidents on other similar pipeline
systems.
Consultative Evaluation: During the consultations, a Project Review
Team (PRT) consisting of representatives from OPS headquarters and
Western Region, pipeline safety officials from Utah and Washington, and
risk management experts met with Chevron to discuss Chevron's risk
assessment, supporting analyses, proposed risk control activities,
performance measures, and means of administering risk management within
the company. The discussions addressed technical validation of all
proposed activities, demographics and terrain along the demonstration
segment, communications with outside stakeholders, and monitoring and
auditing of results once the demonstration project is underway. These
reviews were undertaken to ensure that the proposed Chevron
demonstration project satisfies the three primary review criteria for
the OPS Risk Management Demonstration Program:
1. Whether Chevron's proposed risk management program is consistent
with the Risk Management Program Standard and compatible with the
Guiding Principles set forth in that Standard;
2. Whether the proposed set of risk control alternatives is
expected to produce superior safety, environmental protection, and
reliability of service compared to that achieved from compliance with
the current regulations;
3. Whether Chevron's proposed risk management demonstration program
includes a company work plan and a performance monitoring plan that
will provide adequate assurance that the expectation for superior
safety, environmental protection, and service reliability is actually
being achieved during implementation.
The demonstration project provisions described in this notice
evolved from these consultations, as well as from any public comments
received to date. An Environmental Assessment was completed as part of
the Consultation process and is included as an Appendix to this Notice.
Once OPS and Chevron consider and address comments received on this
notice, OPS may issue an Order approving the Chevron demonstration
project.
3. Statement of Project Goals
The Salt Lake Products Pipeline System transports gasoline, diesel,
and jet fuel, which are stable, flammable liquids. If released in
sufficient quantities and under certain conditions, spills may result
in property and environmental damage, injuries, and fatalities.
Therefore, ensuring that pipeline leaks and ruptures do not occur is
the highest priority for OPS, state agencies, and Chevron. Through risk
management, Chevron intends to continuously improve the level of safety
associated with operating this line.
OPS and Chevron believe Chevron's demonstration project will
improve safety by applying numerous risk control measures that exceed
regulatory requirements on the pipeline segment. Chevron has completed
two risk assessments on the entire Salt Lake Products Pipeline System:
the first in 1995 and the second in April 1997. Based on the results of
these risk assessments, Chevron has developed a set of risk control
activities that address the areas of highest risk and are intended to
result in reduced risk and superior safety and reliability on the
pipeline system.
For the Salt Lake Products Pipeline System, Chevron will supplement
the required regulatory activities it now performs with numerous new
and additional risk control activities resulting from the comprehensive
risk assessments. Some of the more significant activities that will be
added to existing measures to improve safety along the demonstration
segment are a comprehensive in-line inspection program to address
external corrosion, activities to minimize the potential impact of
drain valve leaks at several locations, a geologic hazard assessment to
identify areas vulnerable to seismic activity, scouring, and land
movement, enhanced risk communication with Local Emergency Planning
Committees, and improved approaches to identify and address risks in
Unusually Sensitive Areas (USAs). (The USA definition will appear in
American Petroleum Institute (API) guidance to be published during the
first quarter of 1999. Examples of USA candidates would be public water
systems and threatened and endangered species).
Chevron is not requesting any exemptions from current regulations
as part of its demonstration project. The set of risk control
activities that Chevron identified from the risk assessments of the
Salt Lake Products Pipeline System are intended to provide additional
safety assurance. Chevron makes a strong case that the risk of a
release on this system will be reduced, and superior safety and
environmental protection will result.
4. Demonstration Project Pipeline Segment
Salt Lake Products Pipeline System. The Salt Lake Products Pipeline
System passes through Utah, Idaho, Oregon, and Washington. Construction
of the first leg from Salt Lake City, Utah, to Twin Falls, Idaho, was
completed in 1949. Expansion of the system in the 1950's and 1960's
extended the system to Boise, Idaho; Pasco, Washington; and Spokane,
Washington. Major lateral supply pipelines include lines to Pocatello,
Idaho, and the Salt Lake City Airport. The portion of the system
proposed for the Demonstration Program consists of two parallel 8-inch
diameter pipelines from Salt Lake City to Boise--one line transporting
all grades of gasoline, and the other line transporting petroleum
distillates such as diesel and jet fuel. The remainder of the system
from Boise to Spokane consists of only one pipeline. With upgrades
planned for completion by early 1999, the Salt Lake Products Pipeline
System will transport a total of 70,000 barrels per day. The pipeline
route crosses a variety of terrains, including desert, farmland,
mountains, wetlands, and several river crossings. The majority of the
route is through sparsely populated areas, with the exception of Salt
Lake City and Boise where the population growth has resulted in a
moderate density of residences and businesses near the right-of-way
(with some individual residences and businesses adjacent to the right-
of-way).
5. Project Description
The following risk control and monitoring activities would be
included in the Order OPS issues formally approving the Chevron
demonstration project.
Risk Control Activities on the Salt Lake Products Pipeline System
Chevron intends to demonstrate it operates more safely with a risk
management program in place, providing a level of safety and
environmental protection that exceeds protection afforded by pipeline
safety requirements. The set of risk control activities that Chevron
has identified from the risk assessments of the Salt Lake Products
Pipeline System are intended to provide additional protection. Chevron
is not requesting any exemptions from current regulations for its
demonstration project.
The risk control activities that Chevron identified from its 1995
and 1997 risk assessments on the Salt Lake Products Pipeline System
will be the focus of the demonstration project. The most significant
risk control activities are the following:
[[Page 71337]]
External corrosion. The Chevron corrosion maintenance and
prevention program meets or exceeds all regulatory requirements and is
consistent with good industry practices. As with all pipelines that
have been operating for several years, there are some locations where
the company is concerned about pipe coating condition and ensuring the
adequacy of cathodic protection. To obtain better information about the
current pipe condition, especially areas where corrosion might be
occurring, the company intends to enhance its comprehensive internal
inspection program by linking inspection results with identified
sensitive environmental areas (discussed below). Chevron will run an
inspection device through the pipe that will identify pipe geometric
defects such as dents, gouges, and areas that are not perfectly round.
Then a second ``intelligent'' pipe inspection tool will be used to
identify locations where there has been metal loss due to corrosion.
The output from these inspection tools will be used to identify pipe
locations where corrosion or other problems might exist. The company
will then excavate, examine, and, if appropriate, repair any damage
that is discovered at these sites.
Geologic hazards in the form of seismic, scouring, and
land movement. Chevron identified these hazards in the 1995 risk
assessment and remediated several key locations. However, the company
still believes these risks need to be better defined and addressed.
Chevron is proposing to conduct a geologic hazard assessment that
identifies and obtains more data on the areas most vulnerable to
geologic hazards. Chevron will use this information in its risk control
and decision making process to identify risk control activities to
address significant geologic threats.
Mapping Sensitive Environmental Areas. Another feature of
the Chevron risk management demonstration project is to develop
improved approaches to identify and address risks in USAs. This effort
will include mapping sensitive environmental areas adjacent to the line
using the Global Positioning System and Geographic Information System.
This information will support a more thorough investigation of
environmental risks on the pipeline system as well as improving the
allocation of resources to focus on potential problems in
environmentally sensitive areas.
Finally, as part of the demonstration project, Chevron will
reassess the risks of the demonstration site every two years to update
its understanding of risks. Chevron will consult with OPS and state
agencies about how best to address the results of these risk
assessments.
Monitoring Demonstration Project Effectiveness
Chevron's Demonstration Project includes performance monitoring to
assure the superior protection of public safety and achieve other
project objectives. A key element of the performance monitoring plan is
a set of performance measures that would track the risk reduction on
the Salt Lake Products Pipeline System over time, track the growth and
institutionalization of risk management within the company, measure the
effectiveness of Chevron's risk control activities, and provide a basis
for future improvement. Examples include:
Risk reduction on the demonstration site over time.
Chevron will analyze the results from the 1995, 1997, as well as future
risk assessments to be conducted in 1999 and 2001, to see if risk is
being reduced on the pipeline over time.
Risk management program evolution from inception five
years ago until present day and through the demonstration project.
Chevron will document what has been done over time to make the program
and processes more effective, and how the risk tools have evolved over
time. For example, initially the scope of the Chevron program was
assessing risk of pipeline systems, but the program has evolved to
include evaluating all Chevron capital-funded pipeline projects as well
as Chevron expense-funded pipeline projects. Risk management is even
being employed in evaluating potential management system changes, such
as automation and manpower requirements.
Chevron will report performance measure data and project progress
regularly to OPS throughout the four year demonstration period. This
information, as well as periodic OPS audits, will assure accountability
for improved performance.
Section B of the Environmental Assessment provides more detail on
Chevron's proposed project.
6. Regulatory Perspective
Why OPS Plans to Approve This Project?
OPS is considering Chevron's proposed project for the Demonstration
Program because, after extensive review, OPS is satisfied that the
proposal:
A. Provides superior protection for the demonstration segment.
Chevron's risk control activities for the Salt Lake Products Pipeline
System exceed current regulatory requirements to provide additional
safety and environmental protection.
B. Offers a good opportunity to evaluate risk management as a
component of the Federal pipeline safety regulatory program. OPS
believes the Demonstration Program could benefit from Chevron's
participation, given some of the distinguishing features of its
proposed demonstration project, including:
Chevron has a strong corporate commitment to risk
management, and has already established an integrated and comprehensive
risk management program. This project will provide insights into how a
company effectively integrates a risk management program into its on-
going business practices.
Chevron has already completed two risk assessments of the
entire proposed demonstration project system, and has already developed
a set of projects to address the areas of highest risk. Chevron
believes it can demonstrate superior performance by showing that the
risk management program is an effective addition to the current
regulations.
Chevron's proposed project includes using risk assessment
to develop improved approaches to identify and address risks in
sensitive environmental areas (e.g., public water systems, sole source
acquifers, and habitats of critically imperiled, and threatened and
endangered species). This project may provide useful insights into
OPS's current multi-agency efforts to define USAs.
Chevron is not requesting any regulatory exemption. This
project will demonstrate how a company can use risk management to
achieve superior performance and continued improvement without avoiding
required activities.
This project will demonstrate how a quantitative,
scenario-based approach to risk assessment can be effective in
identifying and addressing pipeline risks.
Chevron is one of the few companies that has truly
integrated risk consideration into the annual capital budget process.
The process and its evolution should provide OPS useful insights into a
truly integrated and effective risk management program.
How Will OPS Oversee This Project?
After Chevron's risk management demonstration project is approved,
the PRT consisting of OPS headquarters and regional staff and state
pipeline safety officials who have been reviewing the proposal, will
monitor the project. The PRT is designed to be a more
[[Page 71338]]
comprehensive oversight process that draws maximum technical experience
and perspective from all affected OPS regional and headquarters
offices, and from any affected state agencies that would not normally
provide oversight on interstate transmission projects.
The PRT will conduct periodic risk management audits to observe
company performance of the specific terms and conditions of the OPS
Order authorizing this demonstration project. OPS is developing a
detailed audit plan, tailored to the unique requirements of the Chevron
Demonstration Project. This plan will describe the audit process (e.g.,
types of inspections, methods, and their frequency), as well as
specific requirements for reporting information and performance measure
data to OPS.
OPS retains its full authority to administer and enforce all
regulations governing pipeline safety. Chevron is not requesting any
regulatory exemptions. The Salt Lake Products Pipeline System will be
subject to routine OPS inspection to ensure compliance with the
applicable Federal Pipeline Safety Regulations.
Information Provided to the Public
OPS has previously provided information to the public about the
Chevron project, and has requested public comment, using many different
sources.
1. OPS aired several electronic ``town meetings'' enabling viewers
of the two-way live broadcasts to pose questions and voice concerns
about candidate companies (including Chevron).
2. An earlier Federal Register notice (62 FR 53052; October 10,
1997) informed the public that Chevron was interested in participating
in the Demonstration Program, provided general information about
technical issues and risk control activities to be explored, and
identified the geographic areas the demonstration project would
traverse.
3. Since August 1997, OPS has used an Internet-accessible data
system called the Pipeline Risk Management Information System (PRIMIS),
available via the OPS Home Page at http://ops.dot.gov to collect,
update, and exchange information about all demonstration candidates,
including Chevron.
4. At a November 19, 1997, public meeting OPS hosted in Houston,
TX, Chevron officials presented a summary of the proposed demonstration
project and answered questions from meeting attendees. (Portions of
this meeting were broadcast on December 4, 1997, and March 26, 1998).
5. OPS is providing a prospectus, which includes a map of the
demonstration pipeline segment, to State officials and community
representatives who may be interested in reviewing project information,
providing input, or monitoring the progress of the project.
At this point, OPS has received no public comment on Chevron's
proposal. This notice is OPS's final request for public comment before
OPS intends to approve Chevron's participation in the Demonstration
Program.
Issued in Washington, DC on December 18, 1998.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
Appendix: Environmental Assessment
A. Background and Purpose
A Presidential Directive to the Secretary of Transportation
(October 12, 1996) stated that in implementing the Pipeline Risk
Management Demonstration Program: ``The Secretary shall require each
project to achieve superior levels of public safety and
environmental protection when compared with regulatory requirements
that otherwise would apply.'' Thus, the process to select operators
for this Demonstration Program involves a comprehensive review to
ensure that the proposed project will provide the superior safety
and environmental protection required by this Directive. This
document summarizes the key points of this review for Chevron Pipe
Line Company's (Chevron's) demonstration project, and evaluates the
safety and environmental impacts of this proposed project.
This document was prepared in accordance with section 102(2)(c)
of the National Environmental Policy Act (42 U.S.C. 4332), the
Council on Environmental Quality regulations (40 CFR Parts 1500-
1508), and Department of Transportation Order 5610.1c, Procedures
for Considering Environmental Impacts.
B. Description of the Proposed Action
As a result of a comprehensive review of the risk management
demonstration project Chevron has proposed, the Office of Pipeline
Safety (OPS) proposes to approve this project for participation in
the Demonstration Program.
The Chevron project would involve the following pipeline
segment:
(1) The 330-mile portion of the Salt Lake Products Pipeline
System from Salt Lake City, Utah to Boise, Idaho.
The OPS Project Review Team that conducted this review has
concluded the Chevron project will:
(1) Provide superior safety and environmental protection for the
pipeline segment proposed for the demonstration project; and
(2) Offer a good opportunity to evaluate risk management as a
component of the Federal pipeline safety regulatory program.
The Project Review Team evaluated the project according to
review protocols and criteria available on PRIMIS. This evaluation
is documented in ``OPS Project Review Team Evaluation of Chevron
Demonstration Project.'' As a candidate for the Pipeline Risk
Management Demonstration Program, Chevron has conducted thorough and
systematic risk assessments to identify hazards and risks associated
with operating the demonstration segment. The process used for
performing these risk assessments is described in ``OPS Project
Review Team Evaluation of Chevron Demonstration Project''.
Chevron has a strong, fully institutionalized risk management
program that it has developed and refined through five years of
application on all of its pipeline systems. The foundation of the
Chevron program is a very systematic risk assessment process. This
investigative process involves a comprehensive examination of the
entire pipeline looking for possible sources of risk, modeling
potential accident scenarios represented by these threats, and
quantifying the relative importance of the risks. The examination of
potential consequences includes public and worker safety as well as
health effects, impacts on the environment, and maintaining service
to Chevron's customers. The Chevron risk management program
incorporates a well documented Risk Management Program Manual which
includes a comprehensive set of risk management implementing
procedures. Chevron effectively involves experienced field personnel
in the risk management process. This comprehensive approach to risk
management typically discovers risks that might not have been
addressed through compliance with existing regulations.
Chevron is not requesting exemptions from current regulations
for its proposed demonstration project. The set of risk control
activities that have been identified from the risk assessments of
the Salt Lake Products Pipeline System (described below) go beyond
current pipeline safety requirements to provide additional
protection. Chevron intends to demonstrate it operates more safely
with a risk management program in place, providing a level of safety
and environmental protection that exceeds current regulations.
Chevron has completed two risk assessments on the Salt Lake
Products Pipeline System: the first in 1995 and the second in April
1997. Based on the results of these risk assessments, Chevron has
developed a set of risk control activities that address the areas of
highest risk. The following are the most significant activities that
will be applied to the 330-mile demonstration segment and will be
the focus of the Chevron demonstration project:
External corrosion. The Chevron corrosion maintenance
and prevention program meets or exceeds all regulatory requirements
and is consistent with good industry practices. As with all
pipelines that have been operating for several years, there are some
locations where the company is concerned about pipe coating
condition and ensuring the adequacy of cathodic protection. To
obtain better information about the current pipe condition,
especially areas where corrosion might be occurring, the
[[Page 71339]]
company intends to enhance its comprehensive internal inspection
program by linking inspection results with identified sensitive
environmental areas (discussed below). Chevron will run an
inspection device through the pipe that will identify pipe geometric
defects such as dents, gouges, and areas that are not perfectly
round. Then a second ``intelligent'' pipe inspection tool will be
used to identify locations where there has been metal loss due to
corrosion. The output from these inspection tools will be used to
identify pipe locations where corrosion or other problems might
exist. The company will then excavate, examine, and, if appropriate,
repair any damage that is discovered at these sites.
Geologic hazards in the form of seismic, scouring, and
land movement. Chevron identified these hazards in the 1995 risk
assessment and remediated several key locations. However, the
company still believes these risks need to be better defined and
addressed. Chevron is proposing to conduct a geologic hazard
assessment that identifies and obtains more data on the areas most
vulnerable to geologic hazards. Chevron will use this information in
its risk control and decision making process to identify risk
control activities to address significant geologic threats.
Mapping Sensitive Environmental Areas. Another feature
of the Chevron risk management demonstration project is to develop
improved approaches to identify and address risks in Unusually
Sensitive Areas (USAs). (The USA definition will appear in American
Petroleum Institute (API) guidance to be published during the first
quarter of 1999. Examples of USA candidates would be public water
systems and threatened and endangered species.) This effort will
include mapping sensitive environmental areas adjacent to the line
using the Global Positioning System and Geographic Information
System. This information will support a more thorough investigation
of environmental risks on the pipeline system as well as improving
the allocation of resources to focus on potential problems in
environmentally sensitive areas.
Finally, as part of the demonstration project, Chevron will
reassess the risks of the demonstration site every two years to
update its understanding of risks. Chevron will share the results of
these risk assessments with OPS.
C. Purpose and Need for Action
As authorized by Congress, OPS is conducting a structured
Demonstration Program to evaluate the use of a comprehensive risk
management approach in the operations and regulation of interstate
pipeline facilities. This evaluation is being performed under
strictly controlled conditions through a set of demonstration
projects being conducted with interstate pipeline operators. Through
the Demonstration Program, OPS will determine whether a risk
management approach, properly implemented and monitored through a
formal risk management regulatory framework, achieves:
(1) Superior safety and environmental protection; and
(2) Increased efficiency and service reliability of pipeline
operations.
In June, 1997, Chevron submitted a Letter of Intent to OPS
asking to be considered as a Demonstration Program candidate. Using
the consultative process described in Appendix A of the Requests for
Application for the Pipeline Risk Management Demonstration Program
(62 FR 14719), published on March 27, 1997, OPS is satisfied that
Chevron's proposal will provide superior safety and environmental
protection, and is prepared to finalize the agreement with Chevron
on the provisions for the demonstration project.
D. Alternatives Considered
OPS has considered three alternatives: approval of the Chevron
risk management demonstration project as proposed in Chevron's
application; denial of the Chevron demonstration project; or
approval of the project with certain modifications to Chevron's
application.
OPS's preferred alternative is to approve the Chevron
demonstration project. OPS is satisfied that the proposal will not
significantly affect the surrounding environment. OPS expects the
project will lead to superior levels of safety and environmental
protection than provided under current regulatory requirements,
because of the identification and analysis of effective risk control
activities. Increased sharing between OPS and Chevron about
potential pipeline risks will increase OPS's knowledge and awareness
about potential pipeline threats, provide earlier opportunity to
consider appropriate risk control options, and thereby support a
more effective regulatory role in improving safety and environmental
protection.
If OPS denied the project, it would lose valuable information
concerning the sources of risks to Chevron's pipeline system and the
most effective means of managing these risks. Denial would also
significantly diminish OPS's ability to evaluate the effectiveness
of an institutionalized, integrated, and comprehensive risk
management program in producing superior performance, and would
hinder OPS's ability to satisfy the objectives of the Risk
Management Demonstration Program, and the requirements of the
previously mentioned Presidential Directive.
All of the issues raised by OPS, state regulators, and other
stakeholders about Chevron's proposed project have been discussed
within the consultative process, resolved to OPS's satisfaction, and
reflected in Chevron's application. Thus, we do not see any need to
modify Chevron's proposal.
E. Affected Environment and Environmental Consequences
The Salt Lake Products Pipeline System is composed of 706 miles
of pipeline right-of-way that originates at Chevron's Salt Lake City
refinery and distributes refined product (gasoline, diesel, jet
fuel) throughout the States of Utah, Idaho, Oregon, and Washington.
Chevron has proposed the 330-mile portion of the system between Salt
Lake City, Utah and Boise, Idaho as its demonstration project. The
transported products meet the 49 CFR part 195 definition of
petroleum products in that they are flammable, toxic or corrosive.
This means that the highest priority for OPS and Chevron is ensuring
that pipeline leaks and ruptures do not occur. Through risk
management, Chevron intends to continuously improve the level of
safety and environmental protection associated with operating this
system.
Gasoline, diesel, and jet fuel are stable, flammable liquids.
However, under rare circumstances, spills may result in the
accumulation of highly flammable, heavier than air vapors in low
areas. These vapors may also spread along the ground away from the
spill site. Ignition of the vapor trail may occur if an ignition
source is present. Localized damage created by a fire in the
vicinity of the release could occur. These products form carbon
oxides and various hydrocarbons which are dispersed into the
atmosphere when burned. These products will also float on water, and
large spills have been known to result in kills of fish and other
aquatic life.
The Salt Lake Products Pipeline System has experienced five
relatively small reportable releases since 1990. Two of these
releases were caused by damage from third parties excavating near
the line; two events resulted from external corrosion; and the final
release was due to a welding defect. The volume of product released
from the line in each instance was relatively small--the largest
being approximately 365 barrels of jet fuel that occurred after an
excavator pierced the line. The other four releases ranged from 88
barrels to 200 barrels. None of these releases resulted in injuries
to pipeline personnel or members of the public, or caused a fire or
explosion. The environmental impacts in each case were localized,
cleaned to the satisfaction of regulatory agencies, and caused no
permanent environmental damage.
Chevron is not requesting any exemptions from current
regulations. The set of risk control activities that have been
identified from the risk assessments of the Salt Lake Products
Pipeline System (previously mentioned) go beyond the requirements of
existing regulations to provide additional protection.
During the course of the consultation, Chevron presented the
results of its risk control and decision support process that
identified the risk control activities it proposes to implement on
its proposed demonstration site. The OPS Project Review Team
carefully reviewed these activities and has concluded that superior
protection would be provided. As stated previously, all of these
risk control activities go beyond the existing regulations in
providing additional assurance of safety. The OPS review looked for
potentially negative, unintended outcomes from the proposed
activities but did not identify any significant negative impacts.
OPS has concluded that Chevron's proposed risk control activities
when combined with the existing company practices (which comply with
and in some cases exceed 49 CFR part 195 requirements) will reduce
the likelihood and consequences of pipeline accidents and leaks
along the demonstration segment.
[[Page 71340]]
F. Environmental Justice Considerations
In accordance with Executive Order 12898 (Federal Actions to
Address Environmental Justice in Minority and Low-Income
Populations), OPS has considered the effects of the demonstration
project on minority and low-income populations. As explained above,
this project will not result in any significant environmental
impacts, because Chevron will be complying with current applicable
pipeline safety regulations. Residents along the segment will have
the same level of protection that they presently have, regardless of
the residents' income level or minority status. Therefore, the
proposed project does not have any disproportionately high or
adverse health or environmental effects on any minority or low-
income populations near the demonstration facility.
G. Information Made Available to States, Local Governments, and
Individuals
Since August 1997, OPS has used an Internet-accessible data
system called the Pipeline Risk Management Information System
(PRIMIS), available via the OPS Home Page at http://ops.dot.gov, to
collect, update, and exchange information about all demonstration
candidates, including Chevron. OPS has made the following documents
publicly available through PRIMIS, and incorporates them by
reference into this environmental assessment:
(1) ``Demonstration Project Prospectus: Chevron Pipe Line
Company'', available by contacting Elizabeth M. Callsen at 202-366-
4572. Includes a map of the demonstration segment. Purpose is to
reach the public, local officials, and other stakeholders, and to
solicit their input about the proposed project. The prospectus has
been mailed to Local Emergency Planning Committees (LEPC) and other
local safety officials, Regional Response Teams (RRT) representing
other federal agencies, state pipeline safety officials, conference
attendees, and members of public interest groups.
(2) ``Chevron Pipe Line Company--Application for DOT-OPS Risk
Management Demonstration Program''.
(3) ``OPS Project Review Team Evaluation of Chevron
Demonstration Project''.
(4) Notice of Intent to Approve Project, published concurrently
with this environmental assessment.
OPS has provided additional information to the public about the
Chevron project, and has requested public comment, using many
different sources. OPS aired four electronic broadcasts (June 5,
1997; September 17, 1997; December 4, 1997; and March 26, 1998)
reporting on demonstration project proposals (including Chevron's
proposal). An earlier Federal Register notice (62 FR 53052; October
10, 1997) informed the public that Chevron was interested in
participating in the Demonstration Program, provided general
information about technical issues and risk control activities to be
explored, and identified the geographic areas the demonstration
project would traverse.
At a November 19, 1997, public meeting OPS hosted in Houston,
TX, Chevron officials presented a summary of the proposed
demonstration project and answered questions from meeting attendees.
(Portions of this meeting were broadcast on December 4, 1997 and
March 26, 1998.)
No issues or concerns about Chevron's proposal have been raised.
H. Listing of the Agencies and Persons Consulted, Including Any
Consultants
Persons/Agencies Directly Involved in Project Evaluation
Stacey Gerard, OPS/U.S. Department of Transportation
Tom Fortner, OPS/U.S. Department of Transportation
Elizabeth Callsen, OPS/U.S. Department of Transportation
Bruce Hansen, OPS/U.S. Department of Transportation
Edward Ondak, OPS/U.S. Department of Transportation
Joseph Robertson, OPS/Western Region/U.S. Department of
Transportation
Kent Evans, Utah Department of Commerce
Dennis Lloyd, Washington Utilities and Transportation Commission
Steve Rieger, Washington Utilities and Transportation Commission
Robert Brown, Cycla Corporation (Consultant)
Jim Quilliam, Cycla Corporation (Consultant)
Persons/Agencies Receiving Briefings/Project Prospectus/Requests for
Comment
Regional Response Team (RRT), Regions 8 & 10, representing the
Environmental Protection Agency; the Coast Guard; the U.S.
Departments of Interior, Commerce, Justice, Transportation,
Agriculture, Defense, State, Energy, Labor; Health and Human
Services; the Nuclear Regulatory Commission; the General Services
Administration; and the Federal Emergency Management Agency (RRT Co-
Chairs: Doug Skie, EPA Region 8; Cdr. Ed Stanton, Coast Guard 8th
District; James Everts, EPA Region 10; and Capt. James Morris, Coast
Guard 13th District).
I. Conclusion
Based on the above-described analysis of the proposed risk
management demonstration project, OPS has determined that there are
no significant impacts associated with this action.
[FR Doc. 98-34145 Filed 12-23-98; 8:45 am]
BILLING CODE 4910-60-P
