[Federal Register Volume 63, Number 128 (Monday, July 6, 1998)]
[Rules and Regulations]
[Pages 36373-36376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17721]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 195

[Docket No. RSPA-97-2362; Amdt. 195-62]
RIN 2137--AD05


Pipeline Safety: Incorporation by Reference of Industry Standard 
on Leak Detection

AGENCY: Research and Special Programs Administration (RSPA).

ACTION: Final rule.

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SUMMARY: This rule adopts as a referenced document an industry 
publication for pipeline leak detection, API 1130, ``Computational 
Pipeline Monitoring,'' published by the American Petroleum Institute 
(API). This rule requires that an operator of a hazardous liquid 
pipeline use API 1130 in conjunction with other information, in 
designing, evaluating, operating, maintaining, and testing its 
software-based leak detection system. The use of this document will 
significantly advance the acceptance of leak detection technology on 
hazardous liquid pipelines. However, this rule does not require 
operators to install such systems.

DATES: This final rule takes effect July 6, 1999.

FOR FURTHER INFORMATION CONTACT: Lloyd W. Ulrich, telephone: (202) 366-
4556, FAX: (202) 366-4566, e-mail: [email protected] regarding 
the subject matter of this final rule, or Dockets Unit, (202) 366-4453, 
for copies of this final rule or other material in the docket. Further 
information can be obtained by accessing OPS' Internet Home Page at: 
ops.dot.gov.

SUPPLEMENTARY INFORMATION:

I. Background on Requiring Leak Detection Equipment

A. Congressional Mandate To Issue Regulations

    Congress, in section 212 of the Pipeline Safety Act of 1992 
(codified at 49 U.S.C. 60102(j)), required the Secretary of 
Transportation, by October 24, 1994, to survey and assess the 
effectiveness of emergency flow restricting devices (EFRDs) and other 
procedures, systems, and equipment used to detect and locate hazardous 
liquid pipeline ruptures and minimize product releases from hazardous 
liquid pipeline facilities. Congress further mandated that the 
Secretary issue regulations two years after completing the survey and 
assessment (no later than October 24, 1996). These regulations would 
prescribe the circumstances under which hazardous liquid pipeline 
operators would use EFRDs or other procedures, systems, and equipment 
used to detect and locate pipeline ruptures and minimize product 
releases from pipeline facilities. The Secretary delegated this 
authority to the Research and Special Programs Administration (RSPA).

B. Advance Notice of Proposed Rulemaking, Volpe Center Report and 
Public Workshop

    RSPA used several means to gather information on EFRDs and leak 
detection equipment. We issued an advance notice of proposed rulemaking 
(ANPRM) (59 FR 2802, Jan. 19, 1994) to solicit information primarily 
from hazardous liquid pipeline operators about operational data and 
costs related to EFRDs and about the performance of leak detection 
systems to detect and locate hazardous liquid pipeline ruptures and 
minimize product release. The ANPRM also sought information to help 
determine which critical pipeline locations should be protected from 
product releases. Commenters provided limited usable data and generally 
opposed requiring leak detection equipment and EFRDs.
    We contracted with the Volpe National Transportation Systems Center 
(Volpe Center) to conduct a research study on SCADA 1 
systems, including leak detection systems. Its report, ``Remote Control 
Spill Reduction Technology: A Survey and Analysis of Applications for 
Liquid Pipeline Systems'' (September 29, 1996), found that because of 
the pipeline industry's diversity, each system used for leak detection 
must be custom configured for a particular pipeline system, that SCADA 
and leak detection systems were dependent on the sophistication of the 
host computer and how rapidly and diverse remote field data can be 
collected, and that operators have invested in SCADA systems, but have 
invested much less in software-based leak detection systems.
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    \1\ SCADA is an acronym for Supervisory Control and Data 
Acquisition. SCADA systems utilize computer technology to 
continuously gather data (e.g., pressure, temperature, and delivery 
flow rates) from remote locations on the pipeline. Dispatchers use 
SCADA systems to assist in day-to-day operating decisions on the 
pipeline. SCADA systems can also provide input for real-time models 
of the pipeline operation. Such models compare current operating 
conditions with calculated data values. A deviation may indicate the 
possibility of a leak.
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    RSPA also held a public workshop on October 19, 1995, to obtain 
more data on EFRDs and leak detection systems. Participants confirmed 
the Volpe Center report's finding that each leak detection system is 
unique to the pipeline on which it is installed. Discussions included 
operational and economic problems with leak detection systems, as well 
as their operational, economic and environmental benefits.
    Detailed discussion of the ANPRM, Volpe Center report, and workshop 
can be found at 62 FR 56141; October 29, 1997.

C. Development of API 1130

    In 1994, the API formed a task force to develop a document on 
computational pipeline monitoring (CPM). The task force produced API 
1130, entitled ``Computational Pipeline Monitoring,'' which addressed 
the use of software-based leak detection equipment. API 1130 defines 
computational pipeline monitoring as ``an algorithmic monitoring tool 
that allows the pipeline controller to respond to a pipeline operating 
anomaly which may be indicative of a commodity release.'' The 
document's stated purpose is to assist the pipeline operator in 
selecting, implementing, testing, and operating a CPM system, and to 
help to identify the complexities, limitations, and other implications 
of detecting anomalies on liquid pipelines using CPM systems.
    RSPA and the Volpe Center staff monitored the task force's work. 
Minutes of the task force meetings, and copies of final drafts of API 
1130, are available in Docket No. PS-133.

D. Definition of Areas Unusually Sensitive to Environmental Damage

    Congress required that in prescribing standards, RSPA identify the 
circumstances where EFRDs and other equipment must be installed. RSPA's 
current policy is to base regulations on risk assessment. We believe 
that a

[[Page 36374]]

primary high risk circumstance would be where a pipeline is located in 
an environmentally sensitive area.
    RSPA has been conducting public workshops since 1995 to identify a 
subset of environmentally sensitive areas, areas unusually sensitive to 
environmental damage, or USAs. Because of this ongoing regulatory 
effort to define USAs and the definition's relevance to locating EFRDs, 
RSPA has decided to wait before proposing a rule prescribing where leak 
detection systems would be required.

E. First Step

    Although RSPA has delayed proposing the circumstances where EFRDs 
and other equipment must be installed on hazardous liquid pipeline 
systems until it has an USA definition, RSPA did not want to delay 
addressing the safety and environmental advantages of using software-
based leak detection technology to reduce releases from pipeline 
ruptures.
    Pipeline safety regulations do not require hazardous liquid 
pipeline operators to meet any leak detection system performance 
standards. Thus, as a first step in RSPA's statutory requirement to 
issue regulations prescribing where hazardous liquid pipeline operators 
would use EFRDs or other leak detection systems, RSPA considered 
adopting API 1130. RSPA would adopt API 1130 and require operators to 
use it in operating, maintaining, and testing their existing software-
based leak detection systems and in designing and installing new 
software-based leak detection systems or replacing components of 
existing systems. RSPA considered this action because--
    (1) We monitored the development of API 1130 and its development is 
well documented in Docket No. PS-133. The API task force members who 
developed API 1130 are experts in the pipeline industry, well versed in 
leak detection systems.
    (2) API 1130 is a comprehensive document that advances safety by 
providing for more rapid detection of ruptures and response to those 
ruptures, limiting releases of hazardous liquids.
    (3) Adopting API 1130 complies with the spirit of the President's 
initiative to reduce and simplify regulations by adopting industry-
developed standards. Its adoption would not be controversial because 
the pipeline industry, the primary user, developed the publication.

F. Role of the Technical Hazardous Liquid Pipeline Safety Standards 
Committee (THLPSSC)

    We proposed adopting API 1130 as a referenced document in the 
pipeline safety regulations to the THLPSSC at its meeting on November 
6, 1996. The THLPSSC is a 15-member Congressionally mandated advisory 
committee (49 U.S.C. 60115) responsible for reviewing proposed pipeline 
safety standards for technical feasibility, reasonableness, and 
practicability. The THLPSSC Chairperson appointed a three-person 
subcommittee to work with RSPA to provide technical expertise on the 
feasibility of adopting API 1130. The subcommittee submitted to the 
THLPSSC Chairperson several recommendations, which THLPSSC accepted:
    (1) API 1130 in its entirety should be referenced in the 49 CFR 
Part 195 regulations.
    (2) The operations, maintenance, and testing portions of API 1130 
should apply to all existing and newly-installed CPM systems, and API 
1130 in its entirety should apply to all newly installed CPM systems 
and replacement sections of existing CPM systems.
    (3) Compliance with API 1130 should be within twelve months of 
incorporation of the document into the regulations.
    (4) The document should apply only to single phase liquid pipelines 
(see Section 1.3 of API 1130, which limits the document's application 
to single phase liquid pipelines).
    (5) The preamble to the draft and final rule should state that 
referencing API 1130 is a first step in meeting the requirements of 49 
U.S.C. 60102(j), and is not intended to delay issuing additional 
requirements or actions.

II. Notice of Proposed Rulemaking (NPRM)

A. Proposal

    RSPA published an NPRM on October 29, 1997 (62 FR 56141) proposing 
to incorporate API 1130 into the regulations as a referenced document. 
The NPRM incorporated THLPSSC's recommendations. The rule proposed 
requiring an operator of a hazardous liquid pipeline to comply with API 
1130 in designing, operating, maintaining, and testing the operator's 
software-based leak detection system. The proposed rule did not require 
an operator to install a software-based leak detection system, but 
proposed that whenever such a leak detection system is installed or a 
component replaced, API 1130 would have to be followed. Similarly, each 
existing software-based leak detection system would have to comply with 
the operating, maintenance, testing, and training provisions of API 
1130.
    To be consistent with API 1130's scope limitations (Section 1.3), 
the NPRM limited API 1130's applicability to single-phase liquid 
pipelines. Pipelines transporting both gas and liquid simultaneously, 
called dual phase pipelines, are prevalent in offshore operations. A 
pipeline transports gas and liquid to onshore facilities, where it is 
more economical to separate the gas and liquid for further transport. 
Designing a leak detection system for such a pipeline is extremely 
complex because of the different physical and chemical characteristics 
of gases and liquids.
    The NPRM's comment period closed on December 29, 1997.

B. Discussion of the Comments

    Three comments were filed in the docket: two from hazardous liquid 
operators and one from API.
    One operator asked three questions. The first dealt with a 
``Special Note'' in API 1130 that API documents are reviewed, revised, 
reaffirmed, or withdrawn at least every five years. The commenter asked 
how incorporating API 1130 would affect the hazardous liquid pipeline 
safety regulations should API not reaffirm the document, and the 
document was no longer available. We review and revise the regulations 
periodically to update the references to industry and other voluntary 
standards. In this rule, we are incorporating the current version of 
API 1130. An operator will have to comply with this version of the 
document until we revise the rule. Whatever API does with API 1130 in 
the future will not affect an operator's compliance with the version we 
are incorporating.
    The second question concerned the use of CPM systems not described 
in section 4.1.2 of API 1130. Section 4.1.2 describes seven CPM 
systems: line balance, volume balance, modified volume balance, real 
time transient mode, pressure/flow monitoring, acoustic/negative 
pressure wave, and statistical analysis. The commenter asked if CPM 
systems not described could be used.
    API 1130 lists and describes the seven CPM systems that are used by 
the pipeline industry today. Section 4.1.2 does not limit the use of 
CPM systems to only those described. Our intent in referencing API 1130 
is to include any CPM system, whether or not described in the document, 
as long as the system meets the requirements of API 1130.

[[Page 36375]]

    The third question concerned how we would enforce compliance with 
API 1130. Enforcement strategies are not included in the safety 
standards, but rather are developed by the RSPA enforcement staff. Each 
operator who has installed a CPM system will have to demonstrate that 
it is complying with the requirements in API 1130, as it does with any 
pipeline safety regulation.
    The second operator suggested that the effective date for complying 
with API 1130 should be 24 months instead of the proposed 12 months. 
RSPA believes that 12 months is sufficient compliance time for at least 
three reasons. First, the operator is not required to install a CPM 
system, just to follow API 1130 if one is installed. Second, our 
conversations with API indicate that the vast majority of operators who 
use CPM systems have already adopted the practices embodied in the 
document. Third, a 12-month compliance timetable follows THLPSSC's 
recommendation.
    API commented on the proposed rule's reference to the CPM selection 
criteria in section 4.2. API stated that the NPRM can be interpreted as 
requiring compliance with all the listed criteria in Section 4.2. 
However, the introduction to Section 4.2 makes clear that no system 
meets all the criteria. RSPA has revised Sec. 195.134 in the final rule 
to clarify that all of the selection criteria do not have to be met.
    In addition, we have revised the definition for Computation 
Pipeline Monitoring to clarify that a CPM system alerts the pipeline 
dispatcher of a possible operating anomaly rather than allows the 
dispatcher to respond to an operating anomaly. This revision better 
describes the function of the monitoring tool. Also, Sec. 195.134 has 
been revised by eliminating the superfluous term ``that will be 
installed'' referring to new CPM systems.

C. Advisory Committee Review

    As mentioned previously, the THLPSSC accepted the subcommittee's 
recommendation to reference API 1130 in 49 CFR part 195. The NPRM was 
discussed at the THLPSSC meeting in Houston, Texas, on November 18, 
1997. The eight members present voted unanimously to adopt API 1130 as 
proposed in the NPRM.

III. Regulatory Analyses and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rule is not considered a significant action under section 3(f) 
of Executive Order 12866 and, therefore, was not reviewed by OMB. It is 
not considered significant under the Department of Transportation 
Policies and Procedures (44 FR 11034, Feb. 26, 1979).
    As THLPSSC recommended, this rule adopts an industry document, API 
1130. Our adopting API 1130 should result in leak detection systems 
that allow for faster leak detection, resulting in reduced commodity 
loss, lower short-term cleanup costs from releases, and lower long-term 
remediation costs. The rule does not require an operator to install a 
CPM if the operator does not already have one. It only requires that an 
operator with such a system follow API 1130. API 1130 represents good 
industry practices. Our conversations with API officials confirm that 
the vast majority of the industry that uses CPM already has adopted 
these practices.
    In the NPRM, RSPA solicited information on any costs to industry of 
referencing API 1130. No one submitted any information on costs in 
response to this request. Therefore, RSPA believes that the cost of 
this regulation will be minimal and that a regulatory evaluation is not 
necessary.

B. Regulatory Flexibility Act

    The rule does not mandate the use of CPM but simply adopts the 
practices already instituted and developed by industry. Most operators, 
large, medium and small, with such systems already comply with these 
requirements and will not incur additional costs. Therefore, based on 
the facts available, I certify pursuant to Section 605 of the 
Regulatory Flexibility Act (5 U.S.C. 605) that this action will not 
have a significant economic impact on a substantial number of small 
entities.

C. Federalism Assessment

    The rulemaking action would not have substantial direct effects on 
states, on the relationship between the Federal Government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 12612 (52 FR 41685, Oct. 30, 1987), RSPA has determined that this 
rule does not have sufficient federalism implications to warrant 
preparation of a Federalism Assessment.

D. Unfunded Mandates

    This rule does not impose unfunded mandates under the Unfunded 
Mandates Reform Act of 1995. It does not result in costs of $100 
million or more to either State, local, or tribal governments, in the 
aggregate, or to the private sector, and is the least burdensome 
alternative that achieves the objective of the rule.

E. Paperwork Reduction Act

    There are minimal record keeping requirements included in API 1130. 
This rule does not require an operator to have a CPM. The industry 
developed API 1130; the vast majority of the industry that uses CPM 
already has adopted the practices in API 1130. Because the record 
keeping requirements represent the usual and customary practices of the 
industry, there is minimal paperwork burden on the public. 
Nevertheless, RSPA has prepared a paperwork analysis and, on April 1, 
1998 submitted it to the Office of Management and Budget (OMB) for 
review. The estimated annual information collection burden for the 
entire industry is estimated to be only 100 hours per year.
    Comments on the paperwork burden have been solicited on: (a) The 
need for the proposed collection of information for the proper 
performance of the functions of the agency, including whether the 
information will have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the proposed collection of 
information including the validity of the methodology and assumptions 
used; (c) ways to enhance the quality utility and clarity of the 
information to be collected; and (d) ways to minimize the burden of 
collection of information on those who respond, including the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques.
    No comments were submitted in response to the request for comment. 
OMB approved the information collection and assigned the information 
collection control number 2137-0598, which is approved through April 
30, 2001. Federal agencies are required to publish the OMB control 
number for information collections in the Federal Register. Failure to 
publish the information collection control number would mean that 
respondents would not be required to respond to the information 
collection.

List of Subjects in 49 CFR Part 195

    Ammonia, Carbon dioxide, Petroleum, Pipeline safety, Reporting and 
recordkeeping requirements.
    In consideration of the foregoing, RSPA amends 49 CFR part 195 as 
follows:

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE

    1. The authority citation for Part 195 continues to read as 
follows:


[[Page 36376]]


    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60118; 
and 49 CFR 1.53.

Subpart A--General

    2. Section 195.2 is amended by adding the definition for 
Computational Pipeline Monitoring to read as follows:


Sec. 195.2  Definitions.

* * * * *
    Computation Pipeline Monitoring (CPM) means a software-based 
monitoring tool that alerts the pipeline dispatcher of a possible 
pipeline operating anomaly that may be indicative of a commodity 
release.
* * * * *
    3. Section 195.3 is amended by redesignating paragraphs (c)(2)(i) 
through (c)(2)(iii), as paragraphs (c)(2)(ii) through (c)(2)(iv), and 
adding a new paragraph (c)(2)(i) to read as follows:


Sec. 195.3  Matter incorporated by reference.

* * * * *
    (c) * * *
    (2) * * *
    (i) API 1130 ``Computational Pipeline Monitoring'' (1st Edition, 
1995).
* * * * *

Subpart C--Design Requirements

    4. Section 195.134 is added to read as follows:


Sec. 195.134  CPM leak detection.

    This section applies to each hazardous liquid pipeline transporting 
liquid in single phase (without gas in the liquid). On such systems, 
each new computational pipeline monitoring (CPM) leak detection system 
and each replaced component of an existing CPM system must comply with 
section 4.2 of API 1130 in its design and with any other design 
criteria addressed in API 1130 for components of the CPM leak detection 
system.

Subpart F--Operation and Maintenance

    5. Section 195.444 is added to read as follows:


Sec. 195.444  CPM leak detection.

    Each computational pipeline monitoring (CPM) leak detection system 
installed on a hazardous liquid pipeline transporting liquid in single 
phase (without gas in the liquid) must comply with API 1130 in 
operating, maintaining, testing, record keeping, and dispatcher 
training of the system.

    Issued in Washington, DC on June 29, 1998.
Kelley S. Coyner,
Deputy Administrator.
[FR Doc. 98-17721 Filed 7-2-98; 8:45 am]
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