[Federal Register Volume 62, Number 154 (Monday, August 11, 1997)]
[Notices]
[Pages 43028-43033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21117]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration
[Docket No. PS-142; Notice 7]


Pipeline Safety: Communications Plan for Effective Public 
Communication and Involvement in the Pipeline Safety Risk Management 
Demonstration Program

AGENCY: Office of Pipeline Safety, DOT.

ACTION: Notice.

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SUMMARY: The Research and Special Programs Administration's (RSPA) 
Office of Pipeline Safety (OPS) is establishing and implementing a 
Pipeline Risk Management Demonstration Program (Demonstration Program) 
in which pipeline operators will propose their pipelines as projects 
for the Demonstration Program. Effective communication among OPS, 
States, pipeline operators, community representatives, and other 
interested parties is a key part of this risk management initiative. 
Effective means for communication are vital to OPS understanding local 
safety and environmental conditions that may affect the demonstration 
projects. This document addresses how OPS intends to inform the 
community, seek public

[[Page 43029]]

input, and respond to public concerns. This document also describes how 
OPS will provide opportunities for meaningful public involvement, 
particularly for communities that may be located within a demonstration 
project area. Persons interested in receiving information about 
specific demonstration projects, or about the Demonstration Program 
overall can make their requests by commenting to this notice. OPS also 
seeks public comment on this Communications Plan.

DATES: Comments should be received no later than October 10, 1997.

ADDRESSES: Comments should be sent to the Dockets Facility, U.S. 
Department of Transportation, Plaza 401, 400 Seventh Street, SW, 
Washington, DC 20590-0001. Comments should identify the docket number 
(PS-142). Persons should submit the original 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 Number 401, 
400 Seventh Street, SW, Washington, DC. The Dockets Facility is open 
from 10:00 a.m. to 5:00 p.m., Monday through Friday, except on Federal 
holidays when the facility is closed.

FOR FURTHER INFORMATION CONTACT: Eben M. Wyman, (202) 366-0918, or by 
e-mail ([email protected]), regarding the subject matter of this 
Notice. Contact the Dockets Unit (202) 366-5046, for other material in 
the docket.

SUPPLEMENTARY INFORMATION:

I. Background

    Today, pipeline companies must comply with regulations that apply 
relatively uniformly regardless of conditions that are specific to the 
location and the operation of the pipeline. Although pipelines have 
maintained a good record of public safety and environmental protection 
under the current regulatory structure, government and industry are 
continually looking to improve the pipeline safety program.
    Pipeline operators and OPS seek to achieve a better understanding 
of the risks related to pipelines, where the risks are, and where and 
how operators can use resources effectively to reduce risk across the 
pipeline system, thereby better protecting both people and the 
environment. In addition, operators seek to gain more flexibility to 
address system-unique problems. Both government and industry want to 
have a greater knowledge and understanding of how to achieve superior 
safety and environmental protection, as well as increase reliability of 
pipeline service.
    Risk management offers government and industry a comprehensive 
decision-making process. It includes the identification and analysis of 
risks, the identification, analysis and selection of alternative 
measures to control risks, and the subsequent evaluation of 
performance. It is one means by which an organization systematically 
identifies and assigns resources to address safety and environmental 
risks, as well as other business risks that affect the organization's 
ability to meet its objectives.
    The Demonstration Program will give operators the opportunity to 
demonstrate that their risk management programs can achieve superior 
safety and environmental protection over and above what they have 
already achieved through their compliance with existing pipeline safety 
regulations. Government and industry will evaluate the benefits of risk 
management as a regulatory alternative, and will test whether or not it 
should be considered as an ongoing feature of the OPS regulatory 
program. In a memorandum issued to the DOT Secretary on October 12, 
1996, the President provided policy direction on implementing the 
Demonstration Program. Two goals were clarified: (1) That OPS ensure 
that superior protection would be achieved through the Demonstration 
Program and, (2) that adequate opportunity would be provided for 
meaningful public involvement in the overall implementation and 
progress of the individual demonstration projects.
    To effectively implement the Demonstration Program, OPS needs to 
increase public awareness and understanding of the value and importance 
of the pipeline network nationwide, provide a broad understanding of 
how pipeline companies operate their systems, and allow ample 
opportunity to openly discuss the possible impact of these operations 
on public safety and the environment.
    To prepare to test risk management in individual demonstration 
projects, the Joint Risk Management Quality Teams (JRAQT), made up of 
Federal and State government, industry, and public representatives, 
studied the benefits and limitations of risk management as a regulatory 
alternative. The JRAQT investigated approaches that would allow 
pipeline operators greater flexibility to take site-specific 
considerations into account in addressing both hazardous liquid and 
natural gas pipeline safety and environmental protection. One of its 
reports, ``Survey of Regulatory Agency Applications of Risk 
Management,'' showed that risk management is already widely and 
successfully used in other industry and government practices.
    The JRAQT designed a structured program so that risk management 
could be applied carefully, with results monitored and adjustments made 
as needed. The team created five documents to guide implementation of 
the Demonstration Program: the Program Framework (62 FR 14719), the 
Program Standard, Performance Measures Guidance, a Training Curriculum, 
and this Communications Plan. These documents and related information 
can be obtained by contacting Eben Wyman at (202) 366-0918.

Program Framework

    This document provides information on how pipeline operators can 
propose and get approval of risk management projects. The steps in the 
Program are described, as well as the program objectives, selection 
criteria, and requirements, including how operators must provide for 
communication with the public.

Risk Management Program Standard Requirements

    The Program Standard calls for both internal and external 
communications, that is communications inside the company as well as to 
outside stakeholders. It describes the basic elements and 
characteristics that should be contained in a company's risk management 
program. The Standard describes two sets of key elements: program and 
process elements. Program elements address the corporate responsibility 
for the structure and procedures to administer, document, communicate, 
and evaluate a risk management program. Process elements describe 
technical and analytical methods (i.e., the tools, models, and type of 
analyses) used to identify possible ways to control risks, allocate 
resources to control risks, monitor each project's performance, and 
apply information learned to improve the process.
    A variety of steps are involved in identifying and reducing risks 
on a pipeline system. First, a company conducts a risk assessment, 
develops a risk profile of current pipeline conditions, and identifies 
possible adverse events that could occur. The likelihood and severity 
of these possible events are also evaluated. Second, the company 
examines the options for controlling the risks identified in the risk 
assessment and decides which

[[Page 43030]]

actions it can take to control the risks. Third, the company 
establishes performance measures to track the progress of the risk 
control activities and to evaluate if the intended effect of these 
actions is being achieved.
    The Program Standard provides operators the flexibility needed to 
develop a risk management plan appropriate to the nature and extent of 
the risks being addressed in a demonstration project. Because risk 
management is a continuous improvement process, as new data becomes 
available, the operator can make adjustments accordingly.

II. Purpose and Objectives of Communications Plan

    This Communications Plan (Plan) describes how OPS and industry will 
communicate with those who may be affected by, or interested in, a 
demonstration project. The Plan's purpose is to help communities and 
the public understand the Demonstration Program's goals, processes, 
safety issues, safety actions and anticipated outcomes within each of 
the demonstration projects. This communication will be successful if 
OPS provides access to information, receives feedback, interacts and 
responds to national, state, and community issues.
    Both OPS and operators will work in partnership to provide 
information to all who may be affected by a demonstration project so 
they may understand and evaluate the potential benefits and liabilities 
of risk management. The success of the Demonstration Program depends on 
the ability to demonstrate, and therefore communicate, three goals: (1) 
Risk management can result in superior safety, environmental 
protection, and service reliability than could be achieved through sole 
compliance with current pipeline safety regulations; (2) resources will 
be better prioritized and more effectively applied under risk 
management; and (3) government and industry's discussion of risks and 
risk control options, and both their ability to impact desired 
outcomes, will increase under risk management.
    OPS is building a two-way communication system designed to collect 
and distribute information to and from all parties that may be affected 
by a demonstration project through numerous direct mail and electronic 
means, as well as through direct contact. The goal is to enhance 
communication among OPS and national organizations and agencies, State 
and community representatives. Additionally, pipeline operators who 
apply to participate in the Demonstration Program must describe in 
their application how they too will communicate with communities 
affected by their projects.
    Specific benefits of public involvement in the Demonstration 
Program for OPS, industry, State and community representatives include:
     Exchange of information about specific and relevant local 
factors during the decision-making process that may not be known at the 
Federal or State level; and
     Feedback regarding the success of the Demonstration 
Program in accomplishing the goals for which it was designed.
    During the demonstration period, OPS will:
     Inform and educate about risk management;
     Provide project information and methods to provide input 
or feedback;
     Interact in a timely manner, and
     Respond and report back to all stakeholders.
    To guide national and local communication initiatives, OPS expanded 
the communications workgroup within the JRAQT to involve other 
government agencies, public interest groups, environmental groups, 
industry and community representatives. The workgroup currently 
includes:

 National League of Cities
 National Association of Towns and Townships
 National Fire Protection Association
 International Association of Fire Chiefs
 Fairfax Virginia Fire Department
 Environmental Defense Fund
 Port of Houston Authority
 International City/County Management Association
 Gas Research Institute
 Local Emergency Planning Committees
 Interstate Natural Gas Association of America
 American Petroleum Institute
 Shell Oil Products Company
 Northwest Pipeline Company
 New Hampshire Public Utilities Commission
 Arizona Corporation Commission
 National Transportation Safety Board
 Federal Emergency Management Agency

    For further information about participation in the communications 
workgroup, contact Eben M. Wyman on (202) 366-0918.

National Communications

    1. By working through national organizations and agencies on the 
national level, OPS will continue to provide information about the 
Demonstration Program to other Federal agencies and to national public 
interest and environmental organizations that maintain outreach 
programs to community representatives. Our primary means to reach 
federal agencies is through the National Response Teams (NRT). 
Comprised of fifteen Federal agencies, the NRT representatives have 
agreed to identify any issues of concern they may have regarding 
potential demonstration sites. These agencies include the Environmental 
Protection Agency, Federal Emergency Management Agency, General 
Services Administration, Nuclear Regulatory Commission, and the 
Departments of Agriculture, Commerce, Defense, Energy, Health and Human 
Services, Interior, Justice, Labor, State, Transportation, and 
Treasury. OPS will provide designated NRT regional officials with both 
national and project-specific information throughout the project 
review, approval, and monitoring process so they can identify issues of 
concern and provide feedback on individual demonstration projects in 
their regions.
    2. Federal Register Notices: Opportunities for public comment will 
be provided following the publication of Federal Register notices 
during various stages of the Demonstration Program: (1) OPS will 
publish a notice describing the risk management proposals selected for 
consideration and consultation. This notice will describe the 
candidate's ``Letter of Intent'' (The number of proposals described in 
each notice will depend on the number submitted and screened for 
consultation at the time of publication.); (2) OPS will publish a 
follow-up notice once the consultation is underway to provide updated 
project information and to describe OPS outreach activities; and (3) 
another will be published announcing the final approval of the 
demonstration projects. These notices will include information 
describing the demonstration project, how the operator approaches 
external communication, and a list of contacts from whom to obtain 
additional information. Additionally, OPS will provide a prospectus to 
national, state, and community representatives that describes 
information specific to each demonstration project.
    3. Internet Information System: PRIMIS--As part of its national 
communications efforts, OPS is also making information about pipeline 
risk management available via the Internet on the OPS Home Page (HTTP:/
/ops.dot.gov/riskmgmt.htm). Internet access will provide additional 
means to locate information, as well as to solicit public comment. The 
OPS Home Page

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will be used to disseminate information and to provide the public a 
central point of access to technical assistance.
    OPS is creating a new data system, accessible to all interested 
parties through the Internet, to collect and exchange project 
information. It is called the Pipeline Risk Management Information 
System (PRIMIS). This data system will help OPS perform project 
consultation, approval and audit functions during the Demonstration 
Program, and will help facilitate communication of the resulting 
information. PRIMIS will serve as a repository of information on the 
Risk Management Program as a whole and will provide details concerning 
each of the demonstration projects. It is a place where interested 
parties can provide information, comments or questions for OPS.
    Each of the incoming letters of intent, as well as other 
significant documentation, will be entered and retained in the PRIMIS 
system. PRIMIS will include a company profile developed by OPS, 
specific information on the company's demonstration project, including 
the risk control alternatives proposed in the Letter of Intent, and 
follow-up information through the screening, consultation, and 
implementation phases. The system will also be used to track 
significant meetings, program milestones, events, commitments, and 
follow-up dates during the consultation process. PRIMIS will be 
accessible via the OPS Home Page in September, 1997.
    4. Electronic ``town meetings'': To provide further access to 
information on the Demonstration Program, OPS aired an electronic town 
meeting to discuss the risk management program and candidate projects. 
Based on feedback received from this effort, OPS is considering using 
this method as a regular feature of future communication efforts. This 
two-way live broadcast was aired on June 5, 1997, through the Federal 
Emergency Management Agency's Emergency Education Network (EENET). Use 
of EENET was intended to involve thousands of public safety and 
emergency management officials. During the live broadcast, viewers had 
an opportunity to pose questions and voice concerns to OPS, State, 
industry and community representatives. OPS is seeking ways to expand 
the audience to include local safety and environmental protection 
officials as well as other community representatives. The town meeting 
broadcast was also available via new Internet technology, which 
provided the information via linkage to personal computers. Videotapes 
of this broadcast will be available to loan to interested parties from 
their State pipeline safety office, or from OPS Headquarters. 
Individuals can request to borrow a copy of the videotape via the OPS 
Home page (http://ops.dot.gov), or by contacting OPS by e-mail 
([email protected]). State emergency managements agencies will 
also have a copy.
    5. Identifying other resources: The communications workgroup 
mentioned earlier will assist in identifying information that meets the 
needs of local communities and methods to distribute information. Use 
of the Internet, electronic ``town meetings'' and regional briefings to 
provide project status reports are examples of methods to communicate 
risk management activities on a national basis. We will identify other 
resources during the course of the Demonstration Program.

Local Communications

    Both OPS and participating operators are responsible for local 
level communications focused on communities within a demonstration 
project site area. In its proposal, an operator is required to describe 
to OPS its external communication methods as defined in the Program 
Standard, including the types of information to be communicated and the 
audiences to receive that information. Companies will also describe the 
methods of communication, individuals or organizations responsible for 
providing information, and methods of receiving feedback from these 
audiences.
    The operator will initiate communications at the start of the 
project to inform community representatives about key issues, progress 
and to solicit feedback. Operators will build on existing public 
education and outreach programs. The operator will describe to OPS how 
it plans to address public interests and concerns, and how it will 
communicate to community representatives with varied interests such as 
local officials, environmental organization representatives, and fire, 
rescue, safety and health organization representatives. These 
representatives could include members of organized groups that have a 
continuing interest in pipeline safety issues, or citizens with an 
interest in the projects who come forward with questions or 
suggestions.
    OPS will work with operators to help identify interested parties 
and to answer questions from State officials and community 
representatives. OPS will also help operators gather relevant 
information regarding local, site-specific issues in locations of their 
demonstration projects. OPS and operators will provide information to 
effectively address issues of concern. Many channels of communication, 
including local media sources in various demonstration project areas, 
will be pursued as a means of communication. OPS seeks names of media 
contacts interested in following demonstration projects.
    As stated earlier, OPS will provide a prospectus on each of the 
demonstration projects being considered to State officials and 
community representatives that may be interested in reviewing project 
information, providing input, or monitoring the progress of the 
project. Each prospectus will contain basic information about the 
company and its proposed demonstration project, describe the operator's 
approach to communication with States and community representatives, 
and identify individuals who can be contacted for information, 
questions or comments. These contacts will be OPS, company, and State 
pipeline agency representatives (if the State agrees to participate). 
OPS will provide additional information on project objectives, risk 
management alternatives, and performance measures and progress 
throughout the demonstration period.

III. Commonly Asked Questions

    The following are two commonly asked questions regarding the 
Demonstration Program. OPS will continue to address these and other 
questions received from interested parties using the communication 
techniques described above.

A. What Are the Expected Benefits of the Risk Management Demonstration 
Program?

1. Risk Management Should Help OPS Better Protect the Public and the 
Environment
    While the traditional approach to safety is effective in 
determining if prescribed safety requirements are carried out, it does 
not require a structured process to identify risks or to validate the 
solutions being implemented. Risk management is intended to provide a 
more complete understanding of risks and to provide methods and models 
to produce the most appropriate and cost effective measures to reduce 
risk.
2. Risk Management Is Designed To Yield Improved Information for Policy 
and Decision-Making
    Since risk management is predicated on identifying and 
understanding potential threats to a pipeline system,

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the risk management approach to safety is likely to generate improved 
data to enhance decision-making by both operators and regulators. Both 
government and industry should learn more from available data about a 
wide range of risks and system configurations to help determine the 
most effective methods to measure performance and monitor risk 
activities.
3. Risk Management Will Allow Pipeline Safety Programs To Be Tailored 
to Local Conditions
    Risk management will permit pipeline operators and OPS to focus 
greater attention on those pipeline systems, or segments of those 
systems, where there is an opportunity to reduce risk and achieve 
superior safety, environmental protection and service reliability. The 
goal is to design risk management programs that best address pipeline-
specific conditions.
4. Risk Management Should Provide Increased Operator Flexibility To 
Achieve Superior Safety
    Through risk management, operators plan to use expert knowledge and 
experience to tailor company safety plans to unique system conditions, 
providing them with the flexibility to select the best methods to 
address risks.
5. The Risk Management Demonstration Program Will Be Built Through 
Partnerships
    A partnership was formed among OPS, the pipeline industry, and 
State and community representatives to examine risk management 
principles and to evaluate if they should be tested as an alternative 
approach to pipeline regulation. This partnership is expected to 
continue to improve information exchange between all parties 
participating in the Demonstration Program.

B. How Will the Demonstration Program Work?

1. OPS Will Oversee the Risk Management Demonstration Program Process
    OPS will carefully assess each proposed demonstration project to 
determine whether superior safety and environmental protection can be 
achieved. Before OPS issues an order approving a demonstration project, 
a Project Review Team (PRT), made up of OPS representatives (assisted 
by voluntary State support), will meet with the candidate to clarify 
all relevant aspects of the project. To accomplish this, OPS will seek 
input from other Federal agencies, affected states and other safety and 
environmental officials on their issues and concerns, including their 
knowledge of candidate companies' safety and environmental compliance 
records.
    The selection process will involve a comprehensive review of the 
candidate's pipeline system and consultation with the candidate. There 
are two important operator submissions.
    The first submission is the Letter of Intent. This initial letter 
is an expression of an operator's interest in participating in the 
Demonstration Program. It describes a specific demonstration project 
the operator would like OPS to consider for inclusion in the 
Demonstration Program. Following the receipt of the Letter of Intent, 
OPS will contact the company to set up a series of consultation 
meetings. The second submission is the Formal Application and Work 
Plan, which the operator will prepare after discussions with the PRT 
have resulted in a mutually acceptable demonstration project. This 
submission formally documents the terms and conditions of the project 
and is the basis upon which OPS will approve or reject the operator's 
project.
    Adjustments may be necessary to specific areas of the project 
before it starts. Such adjustments will take into account community 
concerns. Other adjustments or modifications may also occur during the 
course of the project, and may come from periodic reviews by the PRT.
2. Basic Regulatory Roles and Responsibilities Will Not Change Under 
Risk Management
    The Federal government's fundamental responsibilities and authority 
will remain the same. OPS will continue to set standards for, and 
independently assess, pipeline safety and integrity. Oversight will be 
improved as government agencies focus on better understanding how 
individual pipelines are operated, how risk-based decisions are made, 
what effective alternatives exist for reducing risk, and whether the 
intended results are being achieved.
3. Clear and Ambitious Performance Goals Will Be Set
    OPS has worked with representatives of State pipeline safety 
agencies and industry to develop guidance on performance measures that 
will be used to evaluate the results of the demonstration projects. 
Many of the performance measures will be designed to evaluate at the 
national program level whether superior safety and environmental 
protection are achieved through this alternative approach to government 
oversight.
    In addition, performance measures will be designed for government 
and industry to monitor the achievement of desired safety, 
environmental and service reliability results at the individual project 
level. OPS and operators should be able to demonstrate improved 
accountability to the community as a result of these measures.
4. The Demonstration Program Welcomes Public Input
    Improving public involvement has been a Program goal from the 
beginning. Government and industry sought public input through the 
November 1995, the May 1996, and the January 1997 risk management 
public meetings. The public's views have also been sought through the 
OPS Home Page on the Internet (HTTP://ops.dot.gov), presentations to 
groups representing emergency responders and State and community 
representatives, and through newsletters and Federal Register notices. 
The previously described Communications Plan has been designed to 
continue and enhance the public's involvement.
5. Opportunities to Address Public Concerns
    The demonstration project review, consultation, approval, and 
communication process is designed to give appropriate opportunities to 
raise concerns and to seek information about particular demonstration 
projects. Participating companies will facilitate this process by 
coordinating with Federal, State and local authorities to provide 
methods of information sharing to community representatives.
6. Safeguards Will Be Maintained
    The OPS regulatory program that has been in place for 25 years will 
continue to be the means of oversight of all pipelines not 
participating in the Demonstration Program. Pipelines participating in 
demonstration projects will also continue to be safeguarded. OPS and 
State pipeline agencies will maintain regulatory oversight activities 
on all existing pipelines involved inside and outside the Demonstration 
Program.
7. The Focus Will Be on Those Who Can Succeed
    The previously described Program Standard and Framework processes 
are designed to provide many checks and balances in the selection 
process. The process is intended to identify companies that will comply 
with the Program Standard, achieve superior

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safety and environmental protection through risk management, work in 
partnership with OPS to evaluate the merits of risk management, and 
show a corporate commitment to use the risk management process as a 
day-to-day part of their business practices. The selection criteria for 
the Demonstration Program favors those proposals that are the most 
comprehensive. The company must also have a clear and established 
record of compliance in the existing program in order to be considered 
for participation.
8. Enforceable Agreements and Incentives To Perform
    Just as the traditional regulatory system provides a clear process 
to monitor performance, so must the risk management alternative. Once 
OPS approves a Formal Application and Work Plan, an order will be 
issued and notice made to the public through the Federal Register. The 
order will specify the pipeline safety regulatory requirements for the 
period of the demonstration, and set forth the terms and conditions for 
the operator's participation in the project.
    OPS will have an audit plan to monitor how well the operator is 
meeting the performance goals. OPS's full statutory authority to 
inspect pipeline facilities remains in effect.
    Should any unsafe conditions arise, OPS will work with 
participating companies to see that such conditions are quickly 
remedied.
    OPS invites comments on ways we can make the communications program 
more meaningful.

    Issued in Washington, DC, on August 5, 1997.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
[FR Doc. 97-21117 Filed 8-8-97; 8:45 am]
BILLING CODE 4910-60-P