[Federal Register Volume 62, Number 132 (Thursday, July 10, 1997)]
[Notices]
[Pages 37118-37119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17722]
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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration
Underground Storage of Natural Gas or Hazardous Liquids
AGENCY: Research and Special Programs Administration (RSPA), DOT.
ACTION: Notice; issuance of advisory bulletin.
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SUMMARY: RSPA is issuing an advisory bulletin to operators of gas and
hazardous liquid underground storage facilities. The bulletin advises
the industry about available design and operating guidelines and
applicable state and RSPA regulations. Elsewhere in this issue of the
Federal Register, RSPA concludes its proposed rule proceeding on
underground gas and hazardous liquid storage facilities.
FOR FURTHER INFORMATION CONTACT: L. M. Furrow, (202) 366-4595.
SUPPLEMENTARY INFORMATION:
I. Background
On April 7, 1992, an uncontrolled release of highly volatile
liquids from a salt dome storage cavern in the Seminole Pipeline System
near Brenham, Texas, formed a large, heavier-than-air gas cloud that
exploded. Three people died from injuries sustained either from the
blast or in the fire. An additional 21 people were treated for injuries
at area hospitals. Damage from the accident exceeded $9 million.
During its investigation of this accident, the National
Transportation Safety Board (NTSB) found several deficiencies in the
design of Brenham station, the most important of which was the lack of
a fail-safe cavern shutdown system. In addition, a comprehensive safety
analysis of the station had not been conducted to identify potential
points of failure and product release.
Following its accident investigation, NTSB published pipeline
safety recommendation No. P-93-9 regarding underground storage.
Recommendation P-93-9 asks RSPA to develop safety requirements for
storage of highly volatile liquids and natural gas in underground
facilities, including a requirement that all pipeline operators perform
safety analyses of new and existing underground geologic storage
systems to identify potential failures, determine the likelihood that
each failure will occur, and assess the feasibility of reducing the
risk. The recommendation also suggests that RSPA require operators to
incorporate all feasible improvements.
In response to the recommendation, RSPA held a public meeting on
underground storage of gas and hazardous liquids on July 20, 1994, in
Houston Texas (Docket PS-137; 59 FR 30567; June 14, 1994). The purpose
of the meeting was to gather information on the extent of current
regulation, and to help determine the proper action for RSPA to take
regarding regulation of underground storage of gas and hazardous
liquids. At the meeting, representatives of industry, state
governments, and the public presented statements on safety issues,
industry practices, the status of state underground storage
regulations, and the need for additional federal regulations. While
different views were expressed on whether RSPA should begin to regulate
``down hole'' pipe and underground storage, most persons spoke
favorably of industry safety practices and state regulation, and did
not recognize an immediate need for federal regulatory action.
After the meeting, RSPA surveyed a cross section of underground
storage facilities in the U.S. to learn their existing safety systems,
potential safety and environmental problems, staff expertise, and the
extent of state regulation. A report 1 of the survey says
that while all surveyed facilities train personnel in operating and
emergency safety, operational procedures was the leading safety concern
of both operators and state regulators. The report further says that
about 85 percent of surveyed facilities are under some sort of state
regulation. In addition, the report gives pros and cons of federal
regulation and notes that additional data and site investigations would
be needed to correlate increased safety with increased regulation.
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\1\ LRL Sciences, Inc., Underground Hydrocarbon Storage Facility
Survey Summary, October 1996, Volume I and Volume II (Report No.
DTRS-56-95-C-0001 available from National Technical Information
Service, Springfield VA 22161)
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Since the accident, RSPA has actively participated with the
Interstate Oil and Gas Compact Commission (IOGCC) to develop standards.
The IOGCC represents the governors of 36 states--29 members and seven
associate states--that produce virtually all the domestic oil and
natural gas in the United States. The mission of IOGCC is to promote
conservation and efficient recovery of domestic oil and natural gas
resources while protecting health, safety, and the environment through
sound regulatory practices. Regulatory coordination and government
efficiency are chief interests of IOGCC.
IOGCC formed a subcommittee composed of federal and state
regulators, including representatives from the Department of Energy,
the National Association of Regulatory Utility Commissioners, American
Gas Association, National Gas Supply Association, and Gas Research
Institute. The subcommittee developed a report entitled ``Natural Gas
Storage in Salt
[[Page 37119]]
Caverns--A Guide for State Regulators'' (IOGCC Guide). The IOGCC Guide
provides safety standards for the design, construction, and operation
of gas storage caverns. The standards are useful to the industry as
well as state agencies. Copies of the IOGCC Guide can be obtained from
the Interstate Oil and Gas Compact Commission, 900 N.E. 23rd Street,
Oklahoma City, Oklahoma 73152-3127 (phone: 405/525-3556; e-mail:
iogcc@oklaosf.state.ok.us).
In addition, the American Petroleum Institute (API) has published
guidelines for the underground storage of liquid hydrocarbons. RP 1114,
Design of Solution-Mined Underground Storage Facilities, June 1994,
provides basic guidance on the design and development of new solution-
mined underground storage facilities. All aspects of solution-mined
storage are covered, including selecting an appropriate site,
physically developing the cavern, and testing and commissioning the
cavern. Also covered are plug and abandonment practices. RP 1115,
Operation of Solution-Mined Underground Storage Facilities, September
1994, provides basic guidance on the operation of solution-mined
underground hydrocarbon liquid or liquefied petroleum gas storage
facilities. All aspects of solution-mined underground storage
operation, including cavern hydraulics, brine facilities, wellhead and
hanging strings, and cavern testing are covered. Both documents are
available from API, 1220 L Street NW., Washington DC 20005 (phone: 202/
682-8000; e-mail: publications@api.org).
Subsequently, in view of the IOGCC guidelines, API guidelines, and
state regulations, and because of the varying and diverse geology and
hydrology of the many sites, RSPA has decided that generally applicable
federal safety standards may not be appropriate for underground storage
facilities. Moreover, consistent with the President's policy on
government regulation, before choosing a direct regulatory approach to
a problem, we consider alternative solutions, such as eliciting state
or local action, publishing advisories, encouraging the development and
use of voluntary standards, and hosting cooperative federal/industry
seminars. Therefore, RSPA, recognizing the value of underground
hydrocarbon storage requirements tailored to a state's particular
circumstances, is encouraging state action and voluntary industry
action as a way to assure underground storage safety instead of
proposing additional federal regulations. The following Advisory
Bulletin is part of that effort.
II. Advisory Bulletin (ADB-97-04)
To: Owners and Operators of Hazardous Liquid and Natural Gas
Pipelines.
Subject: Underground storage.
Purpose: Inform owners and operators of the availability of
guidelines for the design and operation of underground storage
facilities and advise them to follow applicable state and RSPA safety
standards.
Advisory: RSPA believes the IOGCC Guide and API documents are
appropriate for use by pipeline operators and by state regulatory
agencies concerned about the safety of those portions of underground
salt cavern storage facilities not covered by RSPA pipeline safety
regulations. Through prior direct communication, RSPA has urged state
agencies to use these resources in their safety programs so as to make
new RSPA regulations unnecessary. And at this time, we urge operators
of underground storage facilities that serve interstate gas or
hazardous liquid pipelines to comply not only with the IOGCC Guide and
API documents but also with the appropriate state underground storage
regulations to the extent feasible.
We also remind facility operators that current RSPA safety
standards for gas and hazardous liquid pipelines require operators to
take preventive actions that include system safety analyses and follow-
up. In particular, under 49 CFR 192.605(c)(1)(v) and 195.402(d)(1)(v),
operators must identify any foreseeable malfunction of a component that
may result in a hazard to persons or property and take steps to reduce
the risk. Also, under Secs. 192.617 and 195.402(c) (5) and (6),
operators must analyze failures to learn their causes and minimize the
possibility of a recurrence. We believe these standards substantially
satisfy the need that NTSB recognized for a comprehensive safety
analysis as it relates to piping at underground storage facilities.
(49 U.S.C. Chapter 601; 49 CFR 1.53)
Issued in Washington, DC, on July 1, 1997.
Cesar De Leon,
Deputy Associate Administrator for Pipeline Safety.
[FR Doc. 97-17722 Filed 7-9-97; 8:45 am]
BILLING CODE 4910-60-P
