[Federal Register Volume 62, Number 137 (Thursday, July 17, 1997)]
[Notices]
[Pages 38357-38358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18852]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration
[Docket No. RSPA-97-2346; Notice 2]


Pipeline Safety: Liquefied Natural Gas Facilities Grant of 
Waiver; Northern Eclipse, Inc

    Northern Eclipse, Inc. (NE) petitioned the Research and Special 
Programs Administration (RSPA) for a waiver from compliance with 49 CFR 
Part 193, Liquefied Natural Gas (LNG) Facilities: Federal Safety 
Standards. The petition applies to the Northern Eclipse's proposed Gas 
Treating and Liquefaction (GTL) unit to be located 20 miles north of 
Anchorage, Alaska. NE ensures that an equivalent level of safety will 
be achieved through compliance with alternative safety requirements for 
portable LNG facilities and with the siting requirements for 
liquefaction units. The alternative requirements for portable LNG 
facilities and siting requirements for liquefaction units are described 
in the applicable sections of the National Fire Protection Association 
Standard (NFPA) 59A, Standard for Production, Storage, and Handling of 
Liquefied Natural Gas (1996).
    The petitioner requested the waiver from compliance with Part 193 
based on the following reasons:
    1. The NE GTL unit will be supplied with gas from the Beluga-
Anchorage pipeline through 2,500 feet, a privately-owned service 
pipeline installed by NE downstream of the sales meter.
    2. The NE GTL unit will have minimal LNG surge capacity, and there 
will be no storage at the NE GTL facility.
    3. The NE GTL unit's output will be trucked from the GTL unit to 
end users, including one or more local distribution companies.
    4. The NE GTL unit will not be used by the Beluga-Anchorage 
pipeline in any way to transport gas on NE's behalf.
    5. DOT does not assert similar jurisdiction over liquefiers 
connected to the local distribution companies' (LDCs) fueling motor 
vehicles. The GTL unit would fulfil essentially the same function.
    6. The NE GTL unit will be no different from other consumers of 
gas. For example, chemical plants, power plants, and other end users 
are not regulated even though they are supplied with gas from a 
pipeline.
    7. The NE GTL unit would be exempt under Section 193.2001(b)(2) 
because it would be a natural gas treatment facility without any 
storage.
    8. The NE GTL unit will be a transportable unit mounted on skids.

[[Page 38358]]

    In view of the above, NE alleges that an extension of Part 193 
jurisdiction to the proposed facility would be inconsistent with the 
language and purpose of the regulation. However, NE proposes to ensure 
equivalent safety through compliance with the alternative safety 
provisions for portable LNG facilities and with the siting requirements 
for liquefaction units as described in the applicable sections of the 
NFPA 59A.
    After reviewing the petition, the Research and Special Programs 
Administration (RSPA) published a notice inviting interested persons to 
comment on whether a waiver should be granted (Notice 1)(62 FR 24157; 
May 2, 1997). In the notice, RSPA explained that the 2,500 foot, NE-
installed gas pipeline supplying gas to the NE GTL facility (a large 
volume customer) is a transmission line. Therefore, the gas pipeline is 
subject to 49 CFR Part 192, Transportation of Natural and Other Gas by 
Pipeline: Minimum Federal Safety Standards. Recent revision of the 
definition of Transmission pipeline in Section 192.3 (61 FR 28783; June 
6, 1996) includes pipelines transporting gas to a large volume 
customer. In addition, RSPA explained that the proposed NE GTL facility 
is subject to Part 193 regulation because it receives gas from a Part 
192 regulated pipeline. In general, Part 192 applies to the pipeline 
transportation of gas between producers and consumers. Although the LNG 
is transported by truck after liquefaction, RSPA believes that the NE 
GTL facility nonetheless is part of the overall operation of 
transporting gas, in this case from the Beluga-Anchorage transmission 
line to LDCs and other users at Fairbanks.
    Nevertheless, RSPA considered granting the requested waiver because 
of the unusual features at the proposed NE GTL facility, including its 
remote location, lack of a storage tank, and skid-mounted transportable 
liquefaction unit, which, RSPA believes, poses low risk to public 
safety. RSPA also stated the operator must comply with alternative 
requirements for portable LNG facilities and meet the siting 
requirements for the liquefaction unit described in the applicable 
sections of the NFPA Standard 59A. RSPA received two comments in 
response to the notice, both of which were subsequently withdrawn.
    RSPA, for the reasons explained above and in Notice 1, finds that 
the requested waiver of 49 CFR 193 is appropriate and is consistent 
with pipeline safety, as long as the operator complies with alternative 
requirements for portable LNG facilities and meets the siting 
requirements for the liquefaction units described in the applicable 
sections of the NFPA Standard 59A. Therefore, Northern Eclipse's 
petition for waiver from compliance with 49 CFR 193 is granted, 
effective July 17, 1997.

    Authority: 49 App. U.S.C. 2002(h) and 2015; and 49 CFR 1.53.

    Issued in Washington, D.C. on July 14, 1997.
Cesar DeLeon,
Deputy Associate Administrator for Pipeline Safety.
[FR Doc. 97-18852 Filed 7-16-97; 8:45 am]
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