[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: 
[email protected]).
    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: [email protected]).
    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]
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