98-2860. Risk-Based Alternative To Pressure Testing Older Hazardous Liquid and Carbon Dioxide Pipelines Rule  

  • [Federal Register Volume 63, Number 24 (Thursday, February 5, 1998)]
    [Proposed Rules]
    [Pages 5918-5924]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-2860]
    
    
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    DEPARTMENT OF TRANSPORTATION
    
    Research and Special Programs Administration
    
    49 CFR Part 195
    
    [Docket No. PS-144; Notice 2]
    [RIN 2137-AC 78]
    
    
    Risk-Based Alternative To Pressure Testing Older Hazardous Liquid 
    and Carbon Dioxide Pipelines Rule
    
    AGENCY: Research and Special Programs Administration (RSPA), DOT.
    
    ACTION: Notice of Proposed Rulemaking.
    
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    SUMMARY: This notice proposes to allow operators of older hazardous 
    liquid and carbon dioxide pipelines to elect a risk-based alternative 
    in lieu of the existing rule. The existing rule requires the 
    hydrostatic pressure testing of certain older pipelines. The risk-based 
    alternative would allow operators to elect an approach to evaluating 
    the integrity of these lines that takes into account individual risk 
    factors. This would allow operators to focus resources on higher risk 
    pipelines and effect a greater reduction in the overall risk from 
    pipeline accidents.
    
    DATES: Interested persons are invited to submit comments on this notice 
    of proposed rulemaking (NPRM) by April 6, 1998. Late filed comments 
    will be considered to the extent practicable.
    
    ADDRESSES: Written comments must be submitted in duplicate and mailed 
    or hand-delivered to the Dockets Unit, Room 8421, 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. Comments will become part of this docket and will be available 
    for inspection or copying in Room 8421 between 8:30 a.m. and 5 p.m. 
    each business day.
    
    
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    FOR FURTHER INFORMATION CONTACT: Mike Israni, (202) 366-4571, regarding 
    the subject matter of this proposed rule, or Dockets Unit (202) 366-
    4453, for copies of this final rule document or other material in the 
    docket.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        On June 7, 1994, RSPA published a final rule, ``Pressure Testing 
    Older Hazardous Liquid and Carbon Dioxide Pipelines,'' (Amdt. 195-51; 
    59 FR 29379) to ensure that certain older pipelines have an adequate 
    safety margin between their maximum operating pressure and test 
    pressure. This safety margin is to be provided by pressure testing 
    according to part 195 standards or operation at 80 percent or less of a 
    qualified prior test or operating pressure. The pipelines covered by 
    the rule are steel interstate pipelines constructed before January 8, 
    1971, steel interstate offshore gathering lines constructed before 
    August 1, 1977, or steel intrastate pipelines constructed before 
    October 21, 1985, that transport hazardous liquids subject to part 195. 
    Also covered are steel carbon dioxide pipelines constructed before July 
    12, 1991, subject to part 195.
        On June 23, 1995, the American Petroleum Institute (API) filed a 
    petition on behalf of many liquid pipeline operators that proposed a 
    risk-based alternative to the required pressure testing rule. API 
    indicated that its proposal would allow operators to focus resources on 
    higher risk pipelines and to effect a greater reduction in the overall 
    risk from pipeline accidents.
        In order to determine whether the API proposal had merit, RSPA held 
    a public meeting on March 25, 1996. On May 8 and November 7, 1996, and 
    on May 17, 1997, RSPA briefed the Technical Hazardous Liquid Pipeline 
    Safety Standards Committee (THLPSSC) on the API proposal and steps 
    taken by RSPA to develop a proposed rule. As discussed in more detail 
    below, RSPA finds considerable merit in a risk-based approach to 
    pressure testing of older hazardous liquid pipelines. It provides 
    accelerated testing of electric resistance welded (ERW) pipe, 
    incorporates the use of new technology, and provides for continuing 
    internal inspection of older pipelines through a pigging program. RSPA 
    has been working actively with the pipeline industry to develop a risk 
    management framework for pipeline regulations. The API proposal is 
    consistent with the risk assessment and management approach to safety. 
    The API proposal provides an opportunity to pilot a risk-based approach 
    in a rulemaking forum. Accordingly, this notice of proposed rulemaking 
    proposes a risk-based alternative to the pressure testing rule that has 
    been modeled after the API proposal.
        RSPA has extended time for compliance with the pressure testing 
    rule in order to allow completion of this rulemaking on a risk-based 
    alternative. The deadline for complying with Sec. 195.302 (c)(1) is 
    extended to December 7, 1998. The deadline for complying with 
    Sec. 195.302(c)(2)(i) is extended to December 7, 2000. The deadline for 
    complying with Sec. 195.302(c)(2)(ii) is extended to December 7, 2003. 
    [62 FR 54591; October 21, 1997].
        RSPA seeks comment and information on how to measure the 
    performance of this risk-based alternative to determine effectiveness, 
    particularly in comparison with the pressure test rule.
    
    II. Major features of risk-based alternative
    
        The proposed risk-based alternative to the rule requiring the 
    pressure testing of older pipelines has six main features:
    
    1. Highest Priority is Given to the Highest Risk Facilities; Lowest 
    Risk Facilities are Excepted From Additional Measures
    
        Pre-1970 electric resistance welded (ERW) and lapweld pipelines 
    susceptible to longitudinal seam failures exhibit the highest potential 
    risk because of their combination of probability of failure and 
    potential for larger volume releases as evidenced by historical 
    records. Pressure testing is the only available technology for 
    verifying the integrity of pre-1970 ERW and lapweld pipelines, because 
    it can detect the type of seam failures endemic to some ERW and all 
    lapweld pipe. This risk-based alternative requires accelerated testing 
    of pre-1970 ERW and lapweld pipe susceptible to longitudinal seam 
    failure in certain locations (risk classification C and B) where people 
    might be significantly affected. However, in rural areas (risk 
    classification A), where consequences to the public are less 
    significant, the risk-based alternative allows delayed testing for pre-
    1970 ERW and lapweld pipe susceptible to longitudinal failure and 
    allows the operator to determine the need for pressure testing of other 
    types of pipe.
    
    2. Consequence Factors Such as Location, Product Type, and Release 
    Potential are Taken Into Consideration When Setting Testing Priorities
    
        This risk-based alternative takes into account the most significant 
    variables that may impact the severity of a release, i.e., location 
    with respect to populated areas, the nature of the product transported, 
    and the potential volume of product release. Historically, a very small 
    percentage of releases adversely impacted public safety. By taking 
    these potential consequences into consideration in the timing of tests, 
    an operator's resources will be more effectively applied to reduce 
    risks.
    
    3. Best Available Technology is Applied To Verify Pipeline Integrity
    
        The risk-based alternative encourages the use of the most effective 
    means to ensure pipeline integrity. This proposal utilizes the strength 
    of two primary technologies--pressure testing and magnetic flux 
    leakage/ultrasonic internal inspection devices. Each technology 
    provides testing advantages in particular circumstances. This proposal 
    allows the operator to evaluate the pipeline risk considerations and to 
    choose the most appropriate technology.
    
    4. Timing of Tests is Based on Risk
    
        Considering the probability and consequence factors, the risk-based 
    concept increases the priority of a limited amount of pre-1970 ERW and 
    all lapweld pipelines and maintains the three-year timing for risk 
    classification B and C lines which represent the highest risk to 
    people. Pipelines with lower risks (risk classification A) are allowed 
    a longer testing schedule or are eliminated (non high risk pre-1970 ERW 
    pipelines) from a mandatory testing requirement. Nothing in this 
    proposed alternative precludes an operator from accelerating these 
    schedules based on their pipeline operating and maintenance history.
    
    5. Reduces Test Water Requirements
    
        This proposal would allow operators options that require less test 
    water and generate less water requiring treatment.
    
    6. Provides an Opportunity To Reduce Operating Costs and Maintain the 
    Necessary Margins of Safety by Applying the Risk-based Concept
    
        Acceptance and implementation of this proposal provides an 
    opportunity to pilot a risk-based approach to regulation. OPS 
    anticipates increased use of risk-based approaches in future 
    rulemakings.
    
    III. Proposed Rule
    
        RSPA is proposing to add a new section to Part 195 entitled ``Risk-
    based alternative to pressure testing.'' Existing sections Sec. 195.303 
    ``Test pressure'', and Sec. 195.304 ``Testing of components'' will be 
    renumbered as Sec. 195.304 and Sec. 195.305 respectively.
    
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        Proposed new section Sec. 195.303 ``Risk-based alternative to 
    pressure testing'' would allow an operator of older hazardous liquid 
    and carbon dioxide pipeline to elect an approach to evaluating the 
    integrity of lines that takes into account individual risk factors. 
    This alternative establishes test priorities based on the inherent risk 
    of a given pipeline segment. Each pipeline is assigned a risk 
    classification based on several indicators. In assigning a risk 
    classification to a given pipeline segment, the first step is to 
    determine whether or not the segment contains pre-1970 ERW and lap-weld 
    pipe susceptible to longitudinal seam failures \1\.
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        \1\ Certain pre-1970 ERW and lap-weld pipeline segments are 
    susceptible to longitudinal seam failures. An Operator must consider 
    the seam-related leak history of the pipe and pipe manufacturing 
    information as available, which may include the pipe steel's 
    mechanical properties, including fracture toughness; the 
    manufacturing process and controls related to seam properties, 
    including whether the ERW process was high-frequency or low-
    frequency, whether the weld seam was heat treated, whether the seam 
    was inspected, the test pressure and duration during mill hydrotest; 
    the quality control of the steel-making process; and other factors 
    pertinent to seam properties and quality.
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        The next step is to determine the pipeline segment's proximity to 
    populated areas (Location).
        We are not now proposing to include environmentally sensitive 
    locations within the risk factors for application of the alternative. 
    This is consistent with the API proposal for a risk based alternative. 
    Following public briefings on the progress of the rulemaking at the 
    THLPSSC meetings in November 1996 and May 1997, API objected to 
    inclusion of an environmental factor as premature in light of the 
    ongoing rulemaking to define unusually sensitive areas (USAs). While we 
    do not necessarily agree that a definition of USAs will provide the 
    sole basis for inclusion of an environmental factor for a risk-based 
    alternative to pressure testing, we recognize the difficulties in 
    including such a factor before the USA definition is formulated. The 
    difficulty in even articulating a factor at this time was made very 
    apparent by THLPSSC members at the May 1997 meeting (while one member 
    argued that the environmental factor under consideration for the 
    proposed rule was inadequate, two other members challenged that 
    argument) and discussions with the members and API following that 
    meeting. Because this alternative takes into consideration other 
    significant risk factors that may impact severity of a release, i.e., 
    proximity to populated areas, potential volume of the product release, 
    the nature of product transported, pipeline failure history and 
    pipeline susceptible to longitudinal seam failures, it is unlikely that 
    pipeline testing is being undermined by not considering the 
    environmental factor in the interim. Therefore, we have decided to omit 
    an environmental factor at this time and explore the issue further once 
    we have defined ``unusually sensitive areas''.
        The risk classification of a segment is also adjusted based on the 
    pipeline failure history, the product transported, and the volume 
    potentially releasable in a failure. Additional guidance for use of the 
    alternative is provided in a new proposed Appendix B.
        The pipeline failure history, denoted in the proposed rule as 
    ``Probability of Failure Indicator,'' is an important factor. The 
    history of past failures (types of failures, number of failures, sizes 
    of releases, etc.) plays an important role in determining the chances 
    of future occurrences for a particular pipeline system. Therefore, it 
    has been included as risk factor in the matrix for determining the risk 
    classification. In the proposed rule the probability of failure 
    indicator is considered ``high risk'' if the pipeline segment has 
    experienced more than three failures in last 10 years due to time-
    dependent defects (due to corrosion, gouges, or problems developed 
    during manufacture, construction or operation, etc.). Pipeline 
    operators should make an appropriate investigation of spills to 
    determine whether they are due to time-dependent defects. An operator's 
    determination should be based on sound engineering judgment and be 
    documented. RSPA seeks comment on whether some failures are so minimal 
    as to be appropriately excluded from the failure history risk factor. 
    If so, how should the failure be quantified? Should it only be a 
    reportable incident?
        In addition, the proposed rule provides compliance dates and 
    recordkeeping requirements for those operators who elect the risk-based 
    alternative to pressure testing of older hazardous liquid and carbon 
    dioxide pipelines.
        RSPA believes the proposed rule will provide the pipeline industry 
    with the flexibility to elect alternative technology for evaluating 
    pipeline integrity without sacrificing safety.
    
    IV. Rulemaking Analyses
    
    Executive Order 12866 and DOT Regulatory Policies and Procedures
    
        This proposed rule is a significant regulatory action under 
    Executive Order 12866. Therefore, this notice was reviewed by the 
    Office of Management and Budget. In addition, this proposed rule is 
    significant under DOT's regulatory policies and procedures (44 FR 
    11034; February 26, 1979) because it is the first explicitly risk-based 
    approach to rulemaking proposed by the Office of Pipeline Safety. A 
    copy of the draft regulatory evaluation to this proposal is also 
    available in the docket office for review.
        This section summarizes the conclusions of the draft regulatory 
    evaluation. RSPA's pressure testing final rule was published on June 7, 
    1994 (59 FR 29379) along with a regulatory evaluation which found that 
    the rule had a positive net benefit to the public, i.e., the benefits 
    of the rule exceeded the cost (Present value costs of the earlier 
    proposal were estimated to be between $134-$179 million in 1997 dollars 
    while the present value benefits were estimated as $230-$283 million). 
    Since the risk-based alternative maintains the necessary margins of 
    safety, the benefits of this alternative should be similar to the 
    benefits of the earlier proposal. The present value costs for the risk-
    based alternative are estimated to be between $88.4-$98.4 million for 
    reasons described below. The proposed rule allows the use of 
    alternative technology (smart pigs) for evaluating pipeline integrity. 
    On average smart pig testing is less expensive than pressure testing by 
    $2,650/mile. In some cases smart pig technology provides more 
    information about pipeline anomalies than pressure testing. The 
    alternative would reduce the total amount of test water, which should 
    lower the waste treatment costs and generate less hazardous waste. The 
    alternative would allow operators to forgo testing where pipelines have 
    low operating pressures, transport non-volatile product, operate in 
    rural areas, and have good records on pipeline failure history.
        This risk-based approach is an ongoing process. RSPA believes that 
    the risk-based alternative maintains the necessary margins of safety 
    for the public. Moreover, RSPA concludes that this alternative has the 
    potential for positive improvements for the environment while reducing 
    operating costs by allowing operators to elect those test methods most 
    appropriate to the circumstances of each pipeline.
    Regulatory Flexibility Act
        The regulatory flexibility analysis of the earlier final rule 
    concluded that it would not have a significant impact on a substantial 
    number of small entities. RSPA believes that because this proposed 
    regulation offers an alternative to operators that could reduce the 
    impact of the earlier regulation, this
    
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    proposed rule does not have a significant impact on a substantial 
    number of small entities. Based on the facts available about the 
    anticipated impact of this rulemaking action, I certify pursuant to 
    Section 605 of the Regulatory Flexibility Act (5 U.S.C. 605) that the 
    action will not have a significant economic impact on a substantial 
    number of small entities.
        However, RSPA does not currently have specific information about 
    small entities which may elect to use this alternative to pressure 
    testing. RSPA requests comments from small entities directed at the 
    impacts of this proposed rule.
    Executive Order 12612
        This rulemaking action will not have substantial direct effects on 
    states, on the relationship between the Federal Government and the 
    states, or on the distribution of power and responsibilities among the 
    various levels of government. Therefore, in accordance with E.O. 12612 
    (52 FR 41685; October 30, 1987), RSPA has determined that this final 
    rule does not have sufficient federalism implications to warrant 
    preparation of a Federalism Assessment.
    Paperwork Reduction Act
        This rule does not substantially modify the paperwork burden on 
    pipeline operators. Under the current pressure testing regulations 
    operators are required to have testing plans, schedules, and records. 
    The risk-based alternative would require the same or equivalent plans, 
    schedules, and records for either pressure testing or internal 
    inspection. Therefore, there is no additional paperwork required. 
    Operators who choose the risk-based alternative will be required to 
    have records that the pipeline segment which is not being tested 
    qualifies for the risk-based alternative. According to conversations 
    between OPS and the pipeline industry some of this information is 
    already available in the form of drawings or plans that can be found 
    either in operators' Facility Response Plans required by the Oil 
    Pollution Act of 1990 (OPA 90) or in emergency response plans required 
    by RSPA.
        Operators will be required to periodically review the pipelines 
    that qualify for the risk-based alternative to ensure that they still 
    qualify. OPS believes that operators can conduct this review as part of 
    their normal procedures.
        Because of the above analysis, OPS does not believe that operators 
    will have any additional paperwork burden because of this alternative, 
    and therefore no separate paperwork submission is required.
    National Environmental Policy Act
        RSPA has analyzed this action for purposes of the National 
    Environmental Policy Act (42 U.S.C. 4321 et seq.) and has determined 
    that this action would not significantly affect the quality of the 
    human environment. An Environmental Assessment and a Finding of No 
    Significant Impact are in the docket.
    
    List of Subjects in 49 CFR Part 195
    
        Anhydrous ammonia, Carbon dioxide, Petroleum, Pipeline safety, 
    Reporting and recordkeeping requirements.
    
        In consideration of the foregoing, RSPA proposes to amend part 195 
    of title 49 of the Code of Federal Regulations as follows:
    
    PART 195--[AMENDED]
    
        1. The authority citation for part 195 continues to read as 
    follows:
    
        Authority: 49 U.S.C. 60102, 60104, 60108, and 60109; and 49 CFR 
    1.53.
    
        2. Section 195.302 would be amended by adding a new paragraph 
    (b)(4) to read as follows:
    
    
    Sec. 195.302  General requirements.
    
    * * * * *
        (b) * * *
        (4) Those portions of older hazardous liquid and carbon dioxide 
    pipelines for which an operator has elected the risk-based alternative 
    under Sec. 195.303 and which are not required to be tested based on the 
    risk-based criteria.
    * * * * *
        3. Section 195.302(a) is amended by removing cross-reference 
    ``Sec. 195.304(b)'' and adding in its place cross-reference 
    ``Sec. 195.305(b)''.
        4. In paragraph (c) of Sec. 195.302, the introductory text would be 
    revised to read as follows:
    
    
    Sec. 195.302  General requirements.
    
    * * * * *
        (c) Except for pipelines that transport HVL onshore, low-stress 
    pipelines, and pipelines covered under Sec. 195.303, the following 
    compliance deadlines apply to pipelines under paragraphs (b)(1) and 
    (b)(2)(i) of this section that have not been pressure tested under this 
    subpart:
    * * * * *
    
    
    Sec. 195.303 and 195.304  [redesignated]
    
        5. Section 195.303 ``Test pressure'' and Sec. 195.304 ``Testing of 
    components'' are redesignated as Sec. 195.304 ``Test pressure'' and 
    Sec. 195.305 ``Testing of components''
        6. Part 195 would be amended by adding a new Sec. 195.303 to read 
    as follows:
    
    
    Sec. 195.303  Risk-based alternative to pressure testing older 
    hazardous liquid and carbon dioxide pipelines.
    
        (a) An operator may elect to follow a program for testing a 
    pipeline on risk-based criteria as an alternative to the pressure 
    testing in Sec. 195.302(b)(1)(i) through (iii) and 
    Sec. 195.302(b)(2)(i) of this subpart. Appendix B provides guidance on 
    how this program will work. An operator electing such a program shall 
    assign a risk classification to each pipeline segment according to the 
    indicators described in paragraph (b) of this section as follows:
        (1) Risk Classification A if the location indicator is ranked as 
    low or medium risk, the product and volume indicators are ranked as low 
    risk, and the probability of failure indicator is ranked as low risk;
        (2) Risk Classification C if the location indicator is ranked as 
    high risk; or
        (3) Risk Classification B.
        (b) An operator shall evaluate each pipeline segment in the program 
    according to the following indicators of risk:
        (1) The location indicator is--
        (i) High risk if an area is non-rural \1\; or
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        \1\ An environmental factor will be considered in a later 
    rulemaking.
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        (ii) Medium risk \2\; or
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        \2\ Not currently applicable; it may be applicable with addition 
    of environmental factor to the location indicator.
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        (iii) Low risk if an area is not high or medium risk.
        (2) The product indicator is--
        (i) High risk if the product transported is highly toxic or is both 
    highly volatile and flammable;
        (ii) Medium risk if the product transported is flammable with a 
    flashpoint of less than 100 deg. F, but not highly volatile; or
        (iii) Low risk if the product transported is not high or medium 
    risk.
        (3) The volume indicator is--
        (i) High risk if the line is at least 18 inches in nominal 
    diameter;
        (ii) Medium risk if the line is at least 10 inches, but less than 
    18 inches, in nominal diameter; or
        (iii) Low risk if the line is not high or medium risk.
        (4) The probability of failure indicator is--
        (i) High risk if the segment has experienced more than three 
    failures in the last 10 years due to time-dependent defects (e.g., 
    corrosion, gouges, or problems developed during manufacture, 
    construction or operation, etc.); or
    
    [[Page 5922]]
    
        (ii) Low risk if the segment has experienced less than three 
    failures in the last 10 years due to time-dependent defects.
        (c) The program under paragraph (a) of this section shall provide 
    for pressure testing for a segment constructed of electric resistance-
    welded (ERW) pipe and lapweld pipe manufactured prior to 1970 
    susceptible to longitudinal seam failures as determined through 
    paragraph (d) of this section. The timing of such pressure test may be 
    determined based on risk classifications discussed under paragraph (b) 
    of this section. For other segments, the program may provide for use of 
    a magnetic flux leakage or ultrasonic internal inspection survey as an 
    alternative to pressure testing and, in the case of such segments in 
    Risk Classification A, may provide for no additional measures.
        (d) All pre-1970 ERW pipe and lapweld pipe is deemed susceptible to 
    longitudinal seam failures unless an engineering analysis shows 
    otherwise. In conducting an engineering analysis an operator must 
    consider the seam-related leak history of the pipe and pipe 
    manufacturing information as available, which may include the pipe 
    steel's mechanical properties, including fracture toughness; the 
    manufacturing process and controls related to seam properties, 
    including whether the ERW process was high-frequency or low-frequency, 
    whether the weld seam was heat treated, whether the seam was inspected, 
    the test pressure and duration during mill hydrotest; the quality 
    control of the steel-making process; and other factors pertinent to 
    seam properties and quality.
        (e) Pressure testing done under this section must be conducted in 
    accordance with this subpart. Except for segments in Risk 
    Classification B which are not constructed with pre-1970 ERW pipe, 
    water must be the test medium.
        (f) An operator electing to follow a program under paragraph (a) of 
    this section must develop plans that include the method of testing and 
    a schedule for the testing by December 7, 1998. The compliance 
    deadlines for completion of testing are as shown in the table below:
        Table: Sec. 195.303--Test deadlines
    
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               Pipeline segment                     Risk  classification                    Test deadline           
    ----------------------------------------------------------------------------------------------------------------
    Pre-1970 Pipe susceptible to            C or B                               12/7/2000                          
     longitudinal seam failures [defined    A                                                                       
     in Sec.  195.303(c) & (d)].            12/7/2002                                                               
    All Other Pipeline....................  C                                    12/7/2002                          
    Segments..............................  B                                    12/7/2004                          
                                            A                                                                       
                                            Additional testing not required.                                        
    ----------------------------------------------------------------------------------------------------------------
    
        (g) An operator must review the risk classifications at intervals 
    not to exceed 15 months. If the risk classification of a segment 
    changes, an operator must take appropriate action within two years, or 
    establish the maximum operating pressure under Sec. 195.406(a)(5).
        (h) An operator must maintain records establishing compliance with 
    this section, including records verifying the risk classifications, the 
    plans and schedule for testing, the conduct of the testing, and the 
    review of the risk classifications.
        (i) An operator may discontinue a program under this section only 
    after written notification to the Administrator and approval, if 
    needed, of a schedule for pressure testing.
    
    
    Sec. 195.406  [Amended]
    
        7. Section 195.406(a)(4) is amended by removing cross-reference 
    ``Sec. 195.304'' and adding cross-reference ``Sec. 195.305'' in its 
    place.
        8. A new Appendix B would be added to Part 195 to read as follows:
    
    Appendix B to Part 195--Risk-Based Alternative to Pressure Testing 
    Older Hazardous Liquid and Carbon Dioxide Pipelines
    
    Risk-Based Alternative
    
        This Appendix provides guidance on how a risk-based alternative 
    to pressure testing older hazardous liquid and carbon dioxide 
    pipelines rule allowed by Sec. 195.303 will work. This risk-based 
    alternative establishes test priorities for older pipelines, not 
    previously pressure tested, based on the inherent risk of a given 
    pipeline segment. The first step is to determine the classification 
    based on the type of pipe or on the pipeline segment's proximity to 
    populated. Secondly, the classifications must be adjusted based on 
    the pipeline failure history, product transported, and the release 
    volume potential.
        Tables 2 through 6 give definitions of risk classification A, B, 
    and C facilities. For the purposes of this rule, pipeline segments 
    containing high risk electric resistance-welded pipe (ERW pipe) and 
    lapwelded pipe manufactured prior to 1970 and considered a risk 
    classification C or B facility shall be treated as the top priority 
    for testing because of the higher risk associated with the 
    susceptibility of this pipe to longitudinal seam failures.
        In all cases, operators shall annually, at intervals not to 
    exceed 15 months, review their facilities to reassess the 
    classification and shall take appropriate action within two years or 
    operate the pipeline system at a lower pressure. Pipeline failures, 
    changes in the characteristics of the pipeline route, or changes in 
    service should all trigger a reassessment of the originally 
    classification.
        Table 1 explains different levels of test requirements depending 
    on the inherent risk of a given pipeline segment. The overall risk 
    classification is determined based on the type of pipe involved, the 
    facility's location, the product transported, the relative volume of 
    flow and pipeline failure history as determined from Tables 2 
    through 6.
    
              Table 1.--Test Requirements--Mainline Segments Outside of Terminals, Stations, and Tank Farms         
    ----------------------------------------------------------------------------------------------------------------
          Pipeline segment           Risk  classification         Test  deadline \1\             Test  medium       
    ----------------------------------------------------------------------------------------------------------------
    Pre-1970 Pipeline Segments    C or B                      12/7/2000 \3\               Water only.               
     susceptible to longitudinal  A                           12/7/2002 \3\               Water only.               
     seam failures \2\.                                                                                             
    All Other Pipeline Segments.  C                           12/7/2002 \4\               Water only.               
                                  B                           12/7/2004 \4\               Water/Liq.\5\             
    
    [[Page 5923]]
    
                                                                                                                    
                                  A                           Additional pressure                                   
                                                               testing not required.                                
    ----------------------------------------------------------------------------------------------------------------
    \1\ If operational experience indicates a history of past failures for a particular pipeline system, failure    
      causes (time-dependent defects due to corrosion, construction, manufacture, or transmission problems, etc.)   
      shall be reviewed in determining risk classification (See Table 6) and the timing of the pressure test should 
      be accelerated.                                                                                               
    \2\ All pre-1970 ERW pipeline segments may not require testing. In determining which ERW pipeline segments      
      should be included in this category, an operator must consider the seam-related leak history of the pipe and  
      pipe manufacturing information as available, which may include the pipe steel's mechanical properties,        
      including fracture toughness; the manufacturing process and controls related to seam properties, including    
      whether the ERW process was high-frequency or low-frequency, whether the weld seam was heat treated, whether  
      the seam was inspected, the test pressure and duration during mill hydrotest; the quality control of the steel-
      making process; and other factors pertinent to seam properties and quality.                                   
    \3\ For those pipeline operators with extensive mileage of pre-1970 ERW pipe, any waiver requests for timing    
      relief should be supported by an assessment of hazards in accordance with location, product, volume, and      
      probability of failure considerations consistent with Tables 3, 4, 5, and 6.                                  
    \4\ A magnetic flux leakage or ultrasonic internal inspection survey may be utilized as an alternative to       
      pressure testing where leak history and operating experience do not indicate leaks caused by longitudinal     
      cracks or seam failures.                                                                                      
    \5\ Pressure tests utilizing a hydrocarbon liquid may be conducted, but only with a liquid which does not       
      vaporize rapidly.                                                                                             
    
        Using LOCATION, PRODUCT, VOLUME, and FAILURE HISTORY 
    ``Indicators'' from Tables 3, 4, 5, and 6 respectively, the overall 
    risk classification of a given pipeline or pipeline segment can be 
    established from Table 2. The LOCATION Indicator is the primary 
    factor which determines overall risk, with the PRODUCT, VOLUME, and 
    PROBABILITY OF FAILURE Indicators used to adjust to a higher or 
    lower overall risk classification per the following table.
    
                                              Table 2.--Risk Classification                                         
    ----------------------------------------------------------------------------------------------------------------
                                                                                             Probability of failure 
           Risk classification         Hazard location indicator  Product/volume indicator          indicator       
    ----------------------------------------------------------------------------------------------------------------
    A................................  L or M                     L/L                       L                       
    B................................                                                                               
    (2) Not A or C Risk                                                                                             
     Classification                                                                                                 
    C................................  H                          Any                       Any.                    
    ----------------------------------------------------------------------------------------------------------------
     H=High, M=Moderate, and L=Low.                                                                                 
     Note: For Location, Product, Volume, and Probability of Failure Indicators, see Tables 3, 4, 5, and 6.         
    
        Table 3 is used to establish the LOCATION indicator used in 
    Table 2. Based on the population (and environmental in the future) 
    characteristics associated with a pipeline facility's location, a 
    LOCATION Indicator of H, (M) or L is selected.
    
                Table 3.--Location Indicators--Pipeline Segments            
    ------------------------------------------------------------------------
              Indicator              Population \1\        Environment \2\  
    ------------------------------------------------------------------------
    H...........................  Non-rural areas       ....................
    M...........................  ....................  ....................
    L...........................  Rural areas           ....................
    ------------------------------------------------------------------------
    \1\ The effects of potential vapor migration should be considered for   
      pipeline segments transporting highly volatile or toxic products.     
    \2\ An environmental factor has not been included at this time, but may 
      be once a definition of ``unusually sensitive areas'' has been        
      established.                                                          
    
        Tables 4, 5 AND 6 are used to establish the PRODUCT, VOLUME, and 
    PROBABILITY OF FAILURE Indicators respectively, in Table 2. The 
    PRODUCT Indicator is selected from Table 4 as H, M, or L based on 
    the acute and chronic hazards associated with the product 
    transported. The VOLUME Indicator is selected from Table 5 as H, M, 
    or L based on the nominal diameter of the pipeline. The Probability 
    of Failure Indicator is selected from Table 6.
    
                          Table 4.--Product Indicators                      
    ------------------------------------------------------------------------
              Indicator              Considerations       Product examples  
    ------------------------------------------------------------------------
    H...........................  (Highly volatile and  (Propane, butane,   
                                   flammable).           Natural Gas Liquid 
                                                         (NGL), ammonia).   
      ..........................  Highly toxic........  (Benzene, high      
                                                         Hydrogen Sulfide   
                                                         content crude      
                                                         oils).             
    M...........................  Flammable--flashpoin  (Gasoline, JP4, low 
                                   t <100f. flashpoint="" crude="" oils).="" l...........................="" non-flammable--="" (diesel,="" fuel="" oil,="" flashpoint="" 100+f.="" kerosene,="" jp5,="" most="" crude="" oils).="" ..........................="" highly="" volatile="" and="" carbon="" dioxide.="" non-flammable/non-="" toxic.="" ------------------------------------------------------------------------="" considerations:="" the="" degree="" of="" acute="" and="" chronic="" toxicity="" to="" humans,="" wildlife,="" and="" aquatic="" life;="" reactivity;="" and,="" volatility,="" flammability,="" and="" water="" solubility="" determine="" the="" product="" indicator.="" comprehensive="" environmental="" response,="" compensation="" and="" liability="" act="" reportable="" quantity="" values="" can="" be="" used="" as="" an="" indication="" of="" chronic="" toxicity.="" national="" fire="" protection="" association="" health="" factors="" can="" be="" used="" for="" rating="" acute="" hazards.="" [[page="" 5924]]="" table="" 5.--volume="" indicators="" ------------------------------------------------------------------------="" indicator="" line="" size="" ------------------------------------------------------------------------="" h........................................="">18''              
    M........................................  10''-16'' nominal diameters. 
    L........................................  8'' nominal       
                                                diameter.                   
    ------------------------------------------------------------------------
    H=High, M=Moderate, and L=Low.                                          
    
        Table 6 is used to establish the PROBABILITY OF FAILURE 
    Indicator used in Table 2. The ``Probability of Failure'' Indicator 
    is selected from Table 6 as H or L.
    
       Table 6.--Probability of Failure Indicators (in each haz. Location)  
    ------------------------------------------------------------------------
                                                   Failure history (time-   
                    Indicator                      dependent defects) \2\   
    ------------------------------------------------------------------------
    H \1\....................................  > Three spills in last 10    
                                                years.                      
    L........................................   Three spills in  
                                                last 10 years.              
    ------------------------------------------------------------------------
    H=High and L=Low.                                                       
    \1\ Pipeline segments with greater than three product spills in the last
      10 years should be reviewed for failure causes as described in        
      subnote(\2\). The pipeline operator should make an appropriate        
      investigation and reach a decision based on sound engineering         
      judgment, and be able to demonstrate the basis of the decision.       
    \2\ Time-Dependent Defects are defects that result in spills due to     
      corrosion, gouges, or problems developed during manufacture,          
      construction or operation, etc.                                       
    
        Issued in Washington, D.C. on January 30, 1998.
    Richard B. Felder,
    Associate Administrator for Pipeline Safety.
    [FR Doc. 98-2860 Filed 2-4-98; 8:45 am]
    BILLING CODE 4910-60-P
    
    
    

Document Information

Published:
02/05/1998
Department:
Research and Special Programs Administration
Entry Type:
Proposed Rule
Action:
Notice of Proposed Rulemaking.
Document Number:
98-2860
Dates:
Interested persons are invited to submit comments on this notice of proposed rulemaking (NPRM) by April 6, 1998. Late filed comments will be considered to the extent practicable.
Pages:
5918-5924 (7 pages)
Docket Numbers:
Docket No. PS-144, Notice 2
PDF File:
98-2860.pdf
CFR: (6)
49 CFR 195.302(b)(2)(i)
49 CFR 195.302(c)(2)(i)
49 CFR 195.302
49 CFR 195.303
49 CFR 195.305
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