[Federal Register Volume 63, Number 30 (Friday, February 13, 1998)]
[Notices]
[Pages 7500-7504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3630]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration (RSPA), DOT
[Docket No. RSPA-97-3224; Notice 11]


Pipeline Safety: Environmental Assessment for Risk Management 
Demonstration Project--Shell Pipe Line Corporation

AGENCY: Research and Special Programs Administration, Office of 
Pipeline Safety, DOT.

ACTION: Environmental Assessment.

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SUMMARY: As part of its Congressional mandate to conduct a Risk 
Management Demonstration Program, the Office of Pipeline Safety (OPS) 
has been authorized to conduct demonstration projects with pipeline 
operators to determine how risk management might be used to complement 
and improve the existing Federal pipeline safety regulatory process. 
This is an environmental assessment of Shell Pipe Line Corporation's 
(SPLC) demonstration project. Based on this environmental assessment, 
OPS has preliminarily concluded that this proposed project will not 
have significant environmental impacts.

ADDRESSES: OPS requests that comments about this environmental 
assessment be submitted on or before March 16, 1998, so they can be 
considered before project approval. Comments should be sent to the 
Dockets Facility, U.S. Department of Transportation, Plaza 401, 400 
Seventh Street, SW, Washington, DC 20590-0001, or you can E-Mail your 
comments to [email protected]. Comments should identify the 
docket number RSPA-97-3224. Persons should submit the original comment 
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 401, 400 Seventh Street, SW, Washington, DC. 
The Dockets Facility is open from 10 a.m. to 5 p.m., Monday through 
Friday, except on Federal holidays.

FOR FURTHER INFORMATION CONTACT: Elizabeth Callsen, OPS, (202) 366-
4572, regarding the subject matter of this environmental assessment. 
Contact the Dockets Unit, (202) 366-9322, for docket material.

SUPPLEMENTARY INFORMATION:

A. Background and Purpose

    A Presidential Directive to the Secretary of Transportation 
(October 16, 1996) stated that in implementing the Pipeline Risk 
Management Demonstration Program: ``The Secretary shall require each 
project to achieve superior levels of public safety and environmental 
protection when compared with regulatory requirements that otherwise 
would apply.'' Thus, the process to select operators for this 
Demonstration Program involves a comprehensive review to ensure that 
the proposed project will provide the superior safety and environmental 
protection required by this Directive. This document summarizes the key 
points of this review for Shell Pipe Line Corporation's (SPLC) 
demonstration project, and evaluates the safety and environmental 
impacts of this proposed project.
    This document was prepared in accordance with section 102(2)(c) of 
the National Environmental Policy Act (42 U.S.C. 4332), the Council on 
Environmental Quality regulations (40 CFR 1500-1508), and Department of

[[Page 7501]]

Transportation Order 5610.1c, Procedures for Considering Environmental 
Impacts.

B. Description of the Proposed Action

    As a result of a comprehensive review of the risk management 
demonstration project SPLC proposed, the Office of Pipeline Safety 
(OPS) proposes to approve this project for participation in the 
Demonstration Program.
    The SPLC project would involve two pipeline segments:
    (1) Texas-Louisiana 12'' Ethylene Pipeline System--205 miles of 250 
mi. (Within the States of Texas and Louisiana); and
    (2) Cortez 30'' Carbon Dioxide (CO2) Pipeline System--260 miles of 
502 mi. (Within the States of Colorado and New Mexico).
    A full description of the scope of this project appears in 62 FR 
67932.
    The OPS Project Review Team that conducted this review has 
concluded the SPLC project will:
    1. Provide superior safety and environmental protection for both of 
the pipeline segments proposed for the demonstration project; and
    2. Offer a good opportunity to evaluate risk management as a 
component of the Federal pipeline safety regulatory program.
    The Project Review Team evaluated the project according to review 
protocols and criteria. This evaluation is documented in ``OPS Project 
Review Team Evaluation of Shell Demonstration Project.''
    As a candidate for the Pipeline Risk Management Demonstration 
Program, SPLC conducted a thorough and systematic risk assessment to 
identify hazards and risks associated with operating both demonstration 
segments. This risk assessment is described in ``OPS Project Review 
Team Evaluation of Shell Demonstation Project''. Teams of SPLC 
personnel representing each demonstration pipeline system, and 
possessing an average of over 25 years of expertise in pipeline design, 
construction, operations, and maintenance, performed the assessments. 
These assessments confirmed expectations that the greatest risk to both 
segments is damage by third party excavation activities near the 
pipelines.
    To control this risk, the SPLC teams identified a number of new 
preventative measures, as well as the enhancement of several existing 
activities, to address both identifying the possibility of the 
existence of any past excavation-related damage and the prevention of 
any future damage of this type. These risk control activities include:
    Right of Way Surveillance:
     Increasing the frequency of air patrols beyond 26 per 
year.
     Improving the timeliness and effectiveness of air patrol 
reporting.
     Improving line-riding procedures and plans.
     Defining and implementing improved patrol activities at 
critical locations.
    Pipeline Locating:
     Evaluating the need for additional and/or improved style 
of line markers.
     Labeling line markers with locating information.
     Installing vehicle barriers where above-ground facilities 
are near roads (Texas--Louisiana line only--no such equipment exists on 
the Cortez system.).
     Installing warning mesh prior to backfilling when the line 
is exposed for construction.
     Conducting annual depth of cover surveys at road crossings 
on the Cortez system; evaluating the need for such surveys on the 
Texas--Louisiana line.
     Furthering company involvement in and sponsorship of One-
Call programs.
     Improving procedures and resources for communicating 
requirements for and managing third party crossings of the lines.
    Public Awareness and Education:
     Conducting dispersion modeling and utilizing the results 
in improving emergency response plans and drills, and targeting 
recipients of pipeline safety mailings.
     Providing improved maps and user-friendly information to 
emergency responders.
     Developing a ``Good Neighbor Plan'' to increase public 
awareness.
     Improving existing repair (emergency response) plans and 
procedures.
     Conducting simulated release drills with emergency 
responders, and updating the Facility Response Plan manual.
     Conducting a corporate-wide workshop on best practices.
    Except as noted above, these activities will be performed on both 
demonstration segments. In addition, for the Texas--Louisiana line, 
SPLC will conduct an internal inspection using a geometry/smart pig and 
compare the results with recent Close Interval Survey results to 
determine if there are any instances of prior unknown third party 
damage. For the Cortez system, SPLC will conduct a Close Interval 
Survey over the entire demonstration segment with emphasis on 
determining if prior third party damage has occurred. All of the risk 
control activities proposed by SPLC exceed regulatory requirements.
    The OPS Project Review Team has reviewed these risk control 
activities and believes that significant improvements in Right-of-Way 
surveillance, pipeline locating, public education and awareness, and 
identification of the possibility of unknown past third party damage 
will result from this project. In addition, emergency preparedness 
would be improved through increased communications with local emergency 
responders, including the conduct of drills and the sharing of 
information from release modeling.
    SPLC has also identified performance measures to monitor the 
effectiveness of these risk control activities throughout the life of 
the demonstration project to ensure that the desired outcome of 
improved protection is achieved. Measures have also been established to 
evaluate the institutionalization of risk management within SPLC. The 
performance measures will form the basis for OPS audits of 
demonstration project effectiveness.
    For the Texas-Louisiana 12'' Ethylene Pipeline System, no 
regulatory exemptions are being sought. The company will still be 
required to comply with all of the applicable requirements of 49 CFR 
part 195. In addition, the new and enhanced risk control activities to 
address third party damage risks will be implemented as noted above.
    For the Cortez 30'' Carbon Dioxide Pipeline System, relief from the 
maximum operating pressure requirement of 49 CFR 195.406 (a)(1-3) over 
a 25-mile segment immediately downstream of the Cortez Station--all of 
which is located in a rural and sparsely populated area--is being 
sought under this program. This regulatory requirement remains in full 
force over the remainder of the Cortez system, and all other applicable 
Part 195 requirements remain in full force for the entire pipeline. 
SPLC conducted several technical evaluations to demonstrate the safety 
of operating the initial 25 miles at the higher pressure. Furthermore, 
the installation of redundant over pressure protection systems, risk 
control activities to ensure the existing integrity of line, and safety 
precautions taken prior to increasing pressure will further minimize 
the risk associated with the increased operating pressure.
    In addition to the risk control activities implemented to minimize 
the risk associated with increasing the Cortez Station discharge 
pressure, SPLC will implement the previously mentioned risk control 
activities to address past and future third party damage over the 
entire 260 mile Cortez demonstration segment. In addition, over the 
initial 25 miles downstream of

[[Page 7502]]

the Cortez Station, a depth of cover survey will be conducted and 
correlated with the Close Interval Survey results to help identify if 
there is any past third party damage.
    The SPLC demonstration project does not involve the construction of 
any new pump station or pipeline. The increased operating pressure will 
be accomplished by making modifications to the existing Cortez Pump 
Station. In fact, with the flexibility to raise pressure above 
regulatory limits, SPLC can increase throughput (the amount of 
commodity transported) without having to construct an intermediate pump 
station near Blanco, NM. Such a project would involve major new 
construction, including bringing utilities to a relatively remote site.
    More detailed descriptions of all aspects of the SPLC proposal, 
risk assessment, and the OPS rationale for approving the project, are 
available in the following documents:
    (1) 62 FR 67932, ``Pipeline Safety: Intent To Approve Shell Pipe 
Line Corporation for the Pipeline Risk Management Demonstration 
Program'', December 30, 1997.
    (2) ``Demonstration Project Prospectus: Shell Pipe Line 
Corporation'', available by contacting Elizabeth M. Callsen at 202-366-
4572. Includes maps of the demonstration segments.
    (3) ``Shell Pipe Line Corporation--Application for DOT-OPS Risk 
Management Demonstration Program'', available in Docket No. RSPA-97-
3224 at the Dockets Facility, U.S. Department of Transportation, Plaza 
401, 400 Seventh Street, SW, Washington, DC 20590-0001, (202) 366-5046.
    (4) ``OPS Project Review Team Evaluation of Shell Demonstration 
Project''.
    These documents are incorporated by reference into this 
environmental assessment and are accessible to the public via the 
Pipeline Risk Management Information System (PRIMIS), at http://
www.cycla.com/opsdemo.

C. Purpose and Need for Action

    As authorized by Congress, OPS is conducting a structured 
Demonstration Program to evaluate the use of a comprehensive risk 
management approach in the operations and regulation of interstate 
pipeline facilities. This evaluation is being performed under strictly 
controlled conditions through a set of demonstration projects being 
conducted with interstate pipeline operators. Through the Demonstration 
Program, OPS will determine whether a risk management approach, 
properly implemented and monitored through a formal risk management 
regulatory framework, achieves:
    (1) Superior safety and environmental protection; and
    (2) Increased efficiency and service reliability of pipeline 
operations.
    In May, 1997, SPLC submitted a Letter of Intent to OPS, asking to 
be considered as a Demonstration Program candidate. Using the 
consultative process described in Appendix A of the Requests for 
Application for the Pipeline Risk Management Demonstration Program (62 
FR 14719), published on March 27, 1997, OPS is satisfied that SPLC's 
proposal will provide superior safety and environmental protection, and 
is prepared to finalize the agreement with SPLC on the provisions for 
the demonstration project.

D. Alternatives Considered

    OPS has considered two alternatives; approval or denial of the SPLC 
demonstration project.
    OPS's preferred alternative is approval of the SPLC demonstration 
project. OPS is satisfied that the proposal provides protection for 
both of the demonstration segments. For the Texas-Louisiana ethylene 
line, all of the proposed risk control activities go beyond the current 
regulatory requirements and thus provide a higher level of protection 
than exists today. OPS and SPLC will monitor and, if necessary, improve 
the effectiveness of the risk control activities throughout the 
demonstration period.
    For the Cortez line, OPS is satisfied that the safety margin in the 
pipe can accommodate the proposed increase in pressure without adding 
significant additional risk to the public. Furthermore, SPLC has 
adequately demonstrated that the combination of third party damage and 
other risk control activities described earlier more than offset any 
increase in risk associated with the higher operating pressure in the 
first 25-miles of the line. If OPS does not approve the SPLC 
demonstration project, SPLC plans to construct a pump station near 
Blanco, NM, to achieve increased throughput on the Cortez line without 
raising pressure beyond regulatory limits. The construction site would 
be located in desert terrain, would cover approximately three acres, 
and would require a new right-of-way for the installation of nine to 
ten miles of electric transmission line.

E. Affected Environment and Environmental Consequences

    The two pipelines proposed for this demonstration project transport 
distinctly different products that represent very different hazards. 
The Texas-Louisiana line transports chemical-grade ethylene, a 
flammable, highly volatile liquid that becomes a slightly lighter-than-
air gas when released to the atmosphere. Under certain conditions, it 
could form an explosive vapor cloud until diluted or dispersed. The 
only potential environmental impact of an ethylene release would be the 
localized damage created by a fire or explosion in the vicinity of the 
release. Because of its volatile nature, ethylene is not considered a 
water pollutant. The Cortez system transports commercial grade carbon 
dioxide. Carbon dioxide is a naturally occurring component of air and 
presents no environmental hazard. However, at high concentrations in 
confined, low lying areas, it could represent an asphyxiation hazard 
until it is dispersed or diluted.
    During the course of the consultation, SPLC presented the results 
of their risk control and decision support process that identified the 
risk control activities they propose to implement on the Cortez and 
Texas-Louisiana systems. The OPS Project Review Team carefully reviewed 
these activities and concluded that superior protection would be 
provided for both pipeline systems.
    For the Texas-Louisiana Ethylene System, SPLC has not requested any 
exemptions or variances from the existing regulations. The risk 
assessment for the Texas-Louisiana system identified damage from third 
party excavation activities as the most significant contributor to 
potential pipeline ruptures and leaks. This conclusion is supported by 
the operating history of this system.
    To address these third party damage risks, SPLC proposes to 
implement a number of risk control activities (mentioned previously). 
The OPS Project Review Team reviewed the Texas-Louisiana risk control 
activities during the consultation process and provided input that 
helped define the final set of activities. As stated previously, all of 
these risk control activities go beyond the existing regulations in 
providing additional assurance of safety. The OPS review included an 
examination for potentially negative, unintended outcomes from the 
proposed activities: No significant negative impacts were identified. 
OPS has concluded that the risk control activities listed above when 
combined

[[Page 7503]]

with the existing company practices (which comply with and in some 
cases exceed 49 CFR part 195 requirements) will reduce the likelihood 
of pipeline accidents and leaks on the Texas-Louisiana Ethylene System. 
The insights from the dispersion analysis and the improvements to the 
emergency response plans and drills should improve the responsiveness 
of the company and local officials to an event, should a leak or 
rupture occur. Thus, the consequences of a leak or rupture should be 
diminished. In summary, based on expected reductions in both the 
likelihood and consequences of leaks and ruptures, OPS has concluded 
that the proposed risk control activities will clearly reduce safety 
and environmental risks on the Texas-Louisiana system.
    For the Cortez Carbon Dioxide system, the only activity SPLC 
proposes to take that would increase risk is increasing the operating 
pressure downstream of the Cortez pump station. For the initial 25 
miles, the pressure might be increased by up to 11% above the limit 
currently established by the regulations. SPLC has conducted several 
technical evaluations to demonstrate that it could safely operate the 
pipeline at the higher pressure over the initial 25 mile segment. 
Furthermore, the installation of redundant over pressure protection 
systems, risk control activities to ensure the existing integrity of 
line, and safety precautions taken prior to and during the increase in 
pressure will minimize any risk associated with the increased operating 
pressure.
    The risk assessment for the Cortez system identified damage from 
third party excavation activities as the most significant contributor 
to potential pipeline ruptures and leaks. To address these risks, SPLC 
proposes to implement a number of risk control activities (mentioned 
previously). The OPS Project Review Team reviewed the Cortez risk 
control activities during the consultation process and provided input 
that helped define the final set listed previously. This review 
included an examination for potentially negative, unintended outcomes 
from the proposed activities. No significant negative impacts were 
identified.
    The PRT has concluded that the risk control activities listed above 
when combined with the existing company practices (which comply with 
and in some cases exceed 49 CFR part 195 requirements) will reduce the 
likelihood of third party damage related events on the Cortez system 
(the most significant risk to the system). The activities designed to 
identify instances of prior third party damage should increase the 
likelihood that prior unknown damage, if any, will be detected and 
remediated. These activities should minimize the likelihood that any 
such damage will result in leaks or ruptures at the higher operating 
pressure. OPS believes that this combination of risk control activities 
will reduce the likelihood of a Cortez system leak or rupture and more 
than offset the small increase in likelihood of line failure associated 
with higher operating pressure.
    The insights from the dispersion analysis, the improvements to the 
emergency response plans and drills, and field personnel training 
should improve the responsiveness of the company and local officials to 
an event, should a leak or rupture occur. Thus, the consequences of a 
leak or rupture should be diminished. In summary, based on expected 
reductions in both the likelihood and consequences of leaks and 
ruptures, OPS concludes that the combination of risk control activities 
in conjunction with the increase in operating pressure by no more than 
11% over the first 25 miles will result in superior protection of the 
public.

F. Environmental Justice Considerations

    In accordance with Executive Order 12898 (Federal Actions to 
Address Environmental Justice in Minority and Low-Income Populations), 
we have considered the effects of the demonstration project on minority 
and low-income populations. As explained above, OPS believes this 
project will provide superior safety and environmental protection along 
both demonstration project lines. The pipeline segments proposed for 
the project are routed through rural, sparsely populated, industrial 
and developing residential areas. A mixture of income levels resides 
along the segments. The risk control activities provide greater 
protection than mere compliance with existing regulations. Because risk 
management activities will be applied uniformly along both lines, 
residents and communities near each line will be afforded greater 
protection than they presently have, regardless of the residents' 
income level or minority status. Therefore, the proposed project does 
not have any dispropotionately high or adverse health or environmental 
effects on any minority or low-income populations along the 
demonstration segments.

G. Information Made Available to States, Local Governments, 
Individuals

    OPS has recently (in January and February 1998) made the following 
documents publicly available, and incorporates them by reference into 
this environmental assessment:
    (1) 62 FR 67932, ``Pipeline Safety: Intent To Approve Shell Pipe 
Line Corporation for the Pipeline Risk Management Demonstration 
Program'', December 30, 1997.
    (2) ``Demonstration Project Prospectus: Shell Pipe Line 
Corporation'', January 1998, available by contacting Elizabeth M. 
Callsen at 202-366-4572. Includes maps of the demonstration segments. 
Purpose is to reach the public, local officials, and other 
stakeholders, and to solicit their input about the proposed project. 
Mailed to over 500 individuals, including Local Emergency Planning 
Committees (LEPC) and other local safety officials, Regional Response 
Teams (RRT) representing other federal agencies, state pipeline safety 
officials, conference attendees, and members of public interest groups.
    (3) ``Shell Pipe Line Corporation--Application for DOT-OPS Risk 
Management Demonstration Program'', available in Docket No. RSPA-97-
3224 at the Dockets Facility, U.S. Department of Transportation, Plaza 
401, 400 Seventh Street, SW, Washington, DC 20590-0001, (202)366-5046.
    (4) ``OPS Project Review Team Evaluation of Shell Demonstration 
Project'.
    OPS has previously provided information to the public about the 
SPLC project, and has requested public comment, using many different 
sources. OPS aired three electronic broadcast (June 5, 1997; September 
17, 1997; and December 4, 1997) reporting on demonstration project 
proposals (including SPLC's proposal). Two earlier Federal Register 
notices (62 FR 40135; July 25, 1997 and 62 FR 53052; October 10, 1997) 
informed the public that SPLC was interested in participating in the 
Demonstration Program, provided general information about technical 
issues and risk control alternatives to be explored, and identified the 
geographic areas the demonstration project would traverse.
    Since August, OPS has used an Internet-accessible data system 
called the Pipeline Risk Management Information System (PRIMIS) at 
http://www.cycla.com/opsdemo to collect, update, and exchange 
information about all demonstration candidates, including SPLC.
    At a November 19, 1997, public meeting OPS hosted in Houston, TX, 
SPLC officials presented a summary of the proposed demonstration 
project and answered questions from meeting attendees. (Portions of 
this meeting were broadcast on December 4, 1997. This

[[Page 7504]]

broadcast is available on demand via our OPS website ops.dot.gov/
tmvid.htm.)

H. Listing of the Agencies and Persons Consulted, Including Any 
Consultants

Persons/Agencies Directly Involved in Project Evaluation

Stacey Gerard, OPS/U.S. Department of Transportation
James C. Thomas (retired), OPS/U.S. Department of Transportation
Linda Daugherty, OPS/U.S. Department of Transportation
Elizabeth Callsen, OPS/U.S. Department of Transportation
Richard Lopez, OPS/U.S. Department of Transportation
Dana Arabie, Office of Conservation, Louisiana Department of Natural 
Resources
Mary McDaniel, Gas Services Division, Railroad Commission of Texas
Anthony Karahalios, Colorado Public Utilities Commission
Jim vonHerrmann, Cycla Corporation (consultant)
Robert Brown, Cycla Corporation (consultant).

Persons/Agencies Receiving Briefings/Project Prospectus/Requests for 
Comment

Regional Response Team (RRT), Regions 6 & 8, representing the 
Environmental Protection Agency; the Coast Guard; the U.S. Departments 
of Interior, Commerce, Justice, Transportation, Agriculture, Defense, 
State, Energy, Labor; Health and Human Services; the Nuclear Regulatory 
Commission; the General Services Administration; and the Federal 
Emergency Management Agency (RRT Co-Chairs: Jim Knoy, EPA Region 8 and 
Cdr. Ed Stanton, Coast Guard 8th District).

I. Conclusion

    Based on the above-described analysis of the proposed demonstration 
project, OPS has determined that there are no significant impacts 
associated with this action.

    Issued in Washington, DC on February 9, 1998.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
[FR Doc. 98-3630 Filed 2-12-98; 8:45 am]
BILLING CODE 4910-60-P