[Federal Register Volume 63, Number 169 (Tuesday, September 1, 1998)]
[Notices]
[Pages 46497-46506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23442]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration
[Docket No. RSPA-98-4034; Notice 14]


Pipeline Safety: Intent To Approve Project and Environmental 
Assessment for the Natural Gas Pipe Line Company of America Pipeline 
Risk Management Demonstration Program

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

ACTION: Notice of intent to approve project and 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 a notice that OPS intends to approve Natural Gas Pipe Line 
Company of America (NGPL) as a participant in the Pipeline Risk 
Management Demonstration Program. This also provides an environmental 
assessment of NGPL's demonstration project. Based on this environmental 
assessment, OPS has preliminarily concluded that this proposed project 
will not have significant environmental impacts.
    This notice explains OPS's rationale for approving this project, 
and summarizes the demonstration project provisions that would go into 
effect once OPS issues an order approving NGPL as a Demonstration 
Program participant. OPS seeks public comment on the proposed 
demonstration project so that it may consider and address these 
comments before approving the project. The NGPL demonstration project 
is one of several projects OPS plans to approve and monitor in 
assessing risk management as a component of the Federal pipeline safety 
regulatory program.

ADDRESSES: OPS requests that comments to this notice or about this 
environmental assessment be submitted on or before October 1, 1998 so 
they can be considered before project approval. However, comments on 
this or any other demonstration project will be accepted in the Docket 
throughout the 4-year demonstration period. 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-98-4034. 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 10:00 a.m. to 5:00 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 notice. Contact the Dockets 
Unit, (202) 366-5046, for docket material. Comments may also be 
reviewed online at the DOT Docket Management System website at http://
dms.dot.gov/.


[[Page 46498]]


SUPPLEMENTARY INFORMATION:

1. Background

    The Office of Pipeline Safety (OPS) is the federal regulatory body 
overseeing pipeline safety. As a critical component of its federal 
mandate, OPS administers and enforces a broad range of regulations 
governing safety and environmental protection of pipelines. These 
regulations have contributed to a good pipeline industry safety record 
by assuring that risks associated with pipeline design, construction, 
operations, and maintenance are understood, managed, and reduced. 
Preserving and improving this safety record is OPS's top priority. On 
the basis of extensive research, and the experience of both government 
and industry, OPS believes that a risk management approach, properly 
implemented and monitored, offers opportunities to achieve:
    (1) Superior safety, environmental protection, and service 
reliability;
    (2) Increased efficiency and reliability of pipeline operations; 
and
    (3) Improved communication and dialogue among industry, the 
government, and other stakeholders.
    A key benefit of this approach is the opportunity for greater 
levels of public participation.
    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 will be performed under strictly 
controlled conditions through a set of Demonstration Projects to be 
conducted with interstate pipeline operators. 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. OPS may exempt a participating operator from particular 
regulations if the operator needs such flexibility in implementing a 
comprehensive risk management program; however, regulatory exemption is 
neither a goal nor requirement of the Demonstration Program. This 
document summarizes the key points of this review for NGPL's 
demonstration project, and evaluates the safety and environmental 
impacts of this proposed project.

2. OPS Evaluation of NGPL's Demonstration Project Proposal

    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 has reached 
agreement with NGPL on the provisions for a demonstration project 
covering NGPL's entire transmission pipeline system.
    After addressing any public comment on this notice, OPS will 
consider issuing an order approving NGPL as a Demonstration Program 
participant. Although NGPL expects to request regulatory exemption as 
its demonstration project matures, the focus in the first year would be 
working with OPS to fully develop and document a formal risk management 
program and set of implementing procedures that correspond to the Risk 
Management Program Standard. Putting NGPL under a risk management order 
at this time would give OPS the best opportunity to influence the 
comprehensive development and uses of risk management in the company 
and to better understand and address system unique risk issues. Working 
closely with NGPL, OPS can observe quantitative risk assessment models 
unique to this project, and review and expedite technical 
justifications for risk control measures related to improved internal 
inspection, repair procedures, and damage prevention. Once the Project 
Review Team (PRT) is assured of the validity of NGPL's analyses, OPS 
would consider approving activities likely to result in superior 
safety. Section 5 of this notice describes some specific risk control 
actions which NGPL is considering as regulatory alternatives and the 
locations where they would be applied.
    Company History and Record: NGPL is a subsidiary of MidCon 
Corporation. It serves natural gas customers located primarily in the 
Midwest. The company transports natural gas through about 13,000 miles 
of pipeline and pipeline facilities, and provides approximately 68% of 
the natural gas in the Northern Illinois, Chicago, Eastern Iowa and 
Northwest Indiana market from supply regions in and around Texas, 
Louisiana and Wyoming. NGPL also has pipelines in Arkansas, Kansas, 
Nebraska, New Mexico, Oklahoma, Missouri, Colorado, and Wisconsin.
    In January 1998, KN Energy, Inc. acquired MidCon Corporation. 
Before the acquisition of MidCon, KN Energy operated over 4000 miles of 
pipeline. It now controls the additional 13,000 miles of NGPL 
pipelines. However, only the NGPL pipelines would comprise the 
demonstration project.
    Before entering into consultations with NGPL, OPS determined that 
NGPL was a good demonstration program candidate based on an examination 
of the company's safety and environmental compliance record, its 
accident history, and its commitment to working with OPS to develop a 
project meeting the Demonstration Program goals. KN Energy has 
expressed the same management support for the project as demonstrated 
by NGPL in the past, and realizes continued participation in the 
Program depends on continued management commitment.
    OPS records show that since 1984, NGPL has filed 49 reportable 
incidents, which is typical for a company of its size. Causes include 
corrosion (24), construction or material defects (8), outside forces 
(8), and other miscellaneous or unknown causes (9). The most 
significant accident, causing eleven deaths and three injuries, 
occurred October 3, 1989, when a fishing boat in the Gulf of Mexico 
near High Island, Texas, struck a sixteen inch diameter line about one 
half mile offshore at a water depth of approximately ten feet. OPS 
determined that NGPL violated no regulations in connection with this 
incident, and no enforcement actions resulted. Following the incident, 
OPS promulgated regulations to protect against future incidents 
involving submerged pipelines. NGPL complied by instituting a regular 
inspection program to assess the integrity of the pipelines in Gulf of 
Mexico shallow waters, exceeding the inspection frequency required by 
the regulations. The NGPL offshore damage protection program determines 
the available soil backfill protection, identifies potential or actual 
damage to the facilities, and makes repairs where needed. In addition, 
NGPL co-chaired a task force that has resulted in several offshore 
damage prevention/public awareness aids and initiatives, such as an 
educational video, an annual luncheon and program for mariners, 
development and installation of pictograph warning signs, and a 
developing offshore one-call system.
    On March 29, 1998, NGPL experienced a corrosion failure of a 
thirty-six inch diameter pipeline approximately five miles south of 
Corrigan, Texas, in a forested and relatively isolated part of Polk 
County,

[[Page 46499]]

Texas. This failure resulted in some fire damage, but no harm to 
people. In September 1998, NGPL will pressure test approximately 40 
miles of pipeline in the area where the failure occurred to 
specifically address the cause of this incident. Also in September, 
NGPL will perform in-line inspections to provide integrity information 
on pipe sections 55 miles upstream and 27 miles downstream from the 
rupture site. Finally, NGPL will examine approximately 600 miles of 
pipeline in the area to determine if the coatings and cathodic 
protection are providing adequate protection to reduce the future 
chance of this type of failure. OPS is monitoring NGPL's response to 
this incident and is presently conducting an accident investigation in 
conjunction with a standard audit of the affected pipeline.
    At this time, OPS believes that the actions NGPL will take to 
address the specific causes of the incident, together with the system-
wide application of NGPL's proposed Risk Management Program, are an 
adequate response to the incident and demonstrate a continued 
commitment to safety.
    NGPL will incorporate information from all incidents into its 
proposed Risk Management Program to further reduce the likelihood of 
future incidents. NGPL's Program will also include frequent feedback 
from field personnel on the condition of the pipeline, risk modeling of 
the pipeline to provide faster and more thorough assessment of threats 
to pipeline integrity, and application of new technology from recent 
research to further reduce risk.
    Consultative Evaluation: During the consultations, a Project Review 
Team (PRT) consisting of representatives from OPS headquarters, Central 
Region, Southwest Region, and Southern Region; pipeline safety 
officials from Illinois and Ohio; and risk management experts met with 
NGPL to discuss NGPL's existing Risk Management Program and the 
expected development of this program during the course of the 
demonstration project. These discussions included the current risk 
assessment and risk control processes NGPL uses, planned expansion, 
improvement, and integration of these processes during the 
demonstration program, potential regulatory alternatives that will be 
examined during the demonstration project, and proposed performance 
measures to ensure superior performance is being achieved. The 
discussions addressed the adequacy of NGPL's management systems and 
technical processes, communications with outside stakeholders, and the 
effect of NGPL's recent merger with KN Energy. The consultation process 
also included an environmental assessment, which is described in 
Appendix B of this notice.
    The consultation process focused on three major review criteria:
    1. Whether NGPL's proposed risk management demonstration program is 
consistent with the Risk Management Program Standard and compatible 
with the Guiding Principles set forth in that Standard;
    2. Whether any risk control activities that will be examined under 
NGPL's proposed risk management program are expected to produce 
superior safety, environmental protection, and reliability of service 
compared to that achieved from compliance with the current regulations;
    3. Whether NGPL's proposed risk management demonstration program 
includes a company work plan and a performance monitoring plan that 
will provide adequate assurance that the expectations for superior 
safety, environmental protection, and service reliability are actually 
being achieved during implementation.
    The demonstration project provisions described in this notice 
evolved from these consultations, as well as any public comments 
received to date. Once OPS and NGPL consider comments received on this 
notice, OPS may issue an order approving the NGPL demonstration 
project.

3. Statement of Project Goals

    The NGPL System transports pressurized natural gas which, if 
released in sufficient quantities in the presence of an ignition 
source, can cause fires and explosions resulting in property damage, 
injuries, and fatalities. Therefore, ensuring that pipeline leaks and 
ruptures do not occur is the highest priority for OPS, state agencies, 
and NGPL. Through risk management, NGPL intends to continuously improve 
the level of safety associated with operating this line.
    NGPL is in the early stages of integrating specific risk assessment 
and prioritization processes required by the Risk Management Program 
Standard with a variety of existing company programs and procedures to 
identify the sources and causes of pipeline risks, to identify 
effective risk control activities to address these risks, and to 
monitor the effectiveness of these activities on system performance.
    OPS believes that accepting NGPL into the risk management 
demonstration program at this time gives OPS the best opportunity to 
influence the continued comprehensive development and uses of risk 
management in the company and to better understand and address system 
unique risk issues. Through assessing the pipeline-specific risks and 
determining the risk reduction potential of risk control alternatives 
at specific locations, NGPL, OPS, and state agencies will improve their 
understanding of the risks affecting pipeline safety and have a better 
opportunity to evaluate the most effective risk control activities to 
manage these risks.
    A distinctive feature of the NGPL proposal is NGPL's commitment to 
using quantitative models, where appropriate, to examine the relative 
risks associated with alternative risk control practices. NGPL is also 
willing to provide OPS access to company risk information, audit 
findings, and project scheduling. NGPL will provide a means of sharing 
company risk information directly with OPS and allowing immediate 
performance monitoring of the project. All of these milestones and 
commitments will be included in the OPS order authorizing the project.
    NGPL has also identified several situations where it believes 
certain alternatives to current regulation may allow a reallocation of 
resources that would result in superior safety. (See Section 5 of this 
notice.) OPS will not be allowing these alternatives in the initial 
order. Once NGPL performs the necessary risk analyses to identify and 
justify the superiority of these risk control alternatives, as 
enhancing safety and environmental protection, OPS will consider 
amending the order to allow them. Although NGPL plans to present OPS 
with the final results of analyses supporting these alternatives in the 
fourth quarter of 1999, OPS and affected states will be working with 
NGPL to complete the risk analyses and begin implementing the 
alternatives at the earliest possible time.
    NGPL will not be exempted from any current pipeline safety 
regulation until the company demonstrates to OPS and the affected 
states that the proposed alternatives provide superior protection than 
the current regulatory requirements. OPS will provide public notice of 
any proposed exemptions and opportunity to comment.

4. Demonstration Project Locations

    NGPL will include its entire gas transmission pipeline system in 
the risk management demonstration project. However, later risk control 
alternatives will focus on specific locations.
    While the project is underway, NGPL will investigate the relative 
risk-reduction of specific alternatives to the current regulations that 
require the operator to make certain changes to the

[[Page 46500]]

design or operation of the pipeline when the population increases 
around the pipeline. NGPL will investigate whether these proposed 
alternatives can provide superior risk reduction at four specific 
locations in which population around the pipeline is increasing. Two of 
the locations are in Liberty County, Texas; one location is in Lamar 
County, Texas; and one location is in Will County, Illinois.
    As experience is gained from the initial set of population class 
change locations, and as risks are assessed for other portions of the 
NGPL gas transmission system, additional class change locations may be 
included in the demonstration project. OPS and NGPL will work together 
to establish criteria and a process for demonstrating when regulatory 
alternatives can provide superior protection at additional class change 
locations. (See Section 6 of this notice for a description of how OPS 
will oversee this project.)

5. Project Description

    NGPL is in the early stages of integrating specific components of 
the OPS Demonstration Program with a variety of company programs, 
practices, and procedures to identify the sources and causes of 
pipeline risks, to identify effective risk control activities to 
address these risks, and to monitor the effectiveness of these 
activities on system performance. Senior level managers are responsible 
for administering and refining the processes that form the foundation 
of NGPL's risk assessment, risk control and decision-making, and 
performance monitoring functions. Appendix A is the company's work plan 
describing tasks to more fully develop its Risk Management Program.
    Current risk control activities build on full compliance with 
current pipeline safety regulations and company and industry knowledge, 
experience, and research. Since 1990, NGPL has made extensive 
improvements to its risk management processes to better manage risks. 
These processes consist of four major components: a Pipeline Integrity 
Process, Management of Change Process, Modification of Standards 
Procedure, and Compliance Assessment Procedures. Currently, the NGPL 
Risk Management Program is reflected in operating and maintenance 
procedures; environment, safety, and health practices; engineering and 
design standards; and internal and external communications. During the 
demonstration project, the company will refine, enhance, further 
integrate, and document these processes in a Risk Management Program 
Manual. NGPL is committed to building on its current risk management 
system, and will continue to improve the ways in which the company:
     Actively investigates potential sources of risk in its 
operations;
     Integrates information from the various components of its 
system to produce a comprehensive understanding of the risk associated 
with NGPL operations;
     Identifies and allocates resources to effectively and 
efficiently manage these risks;
     Institutionalizes the Risk Management Program company-
wide, with explicit identification of roles, responsibilities, and 
accountabilities; and
     Seeks input from and provides information to company 
employees, OPS, and other stakeholders.
    NGPL's work plan, submitted as part of its application, includes 
these activities as specific milestones. These activities will be 
included in the Order authorizing the project. OPS and the states who 
participated in the consultative evaluation of the NGPL project will 
closely observe and interact with NGPL throughout these program 
development activities.
    NGPL has also identified several situations where it believes 
certain alternatives to current regulations may allow a reallocation of 
resources that would result in superior performance. OPS will not be 
allowing these alternatives in the initial order. However, once NGPL 
performs the necessary risk analyses to identify and justify the 
superiority of these risk control alternatives, as enhancing safety and 
environmental protection, OPS will consider amending the order to allow 
them. Although the work plan in Appendix A shows that NGPL will present 
OPS with the final results of analyses supporting these alternatives in 
the fourth quarter of 1999, OPS and the affected states will be working 
with NGPL to complete the risk analyses and begin implementing the 
alternatives at the earliest possible time.

Alternatives to Regulations Covering Class Location Changes (192.609/
611)

    OPS categorizes all locations along the pipeline according to the 
size of the population near the pipeline. Locations with the smallest 
population (fewer than 10 buildings intended for human occupancy within 
220 yards on either side of the pipeline) are designated Class 1. As 
the population along the pipeline increases, the class location 
changes. For example, Class 2 locations have more than 10, but fewer 
than 46 buildings intended for human occupancy; Class 3 locations have 
46 or more buildings. The highest class, Class 4, involves locations in 
which buildings with four or more stories above ground (e.g., large 
apartment buildings) are prevalent. Ninety-two percent of NGPL's system 
is Class 1; three percent is Class 2; five percent is Class 3. NGPL 
does not operate any facilities within Class 4 areas.
    When the population surrounding the pipeline increases 
sufficiently, the class location of the pipeline may change. When the 
class location of a pipeline segment changes, the current regulations 
require an operator to confirm or revise the maximum allowable 
operating pressure. This could require such actions as replacing the 
pipe, lowering the operating pressure, or performing additional 
pressure tests of the line. NGPL will examine the potential risk 
reduction of an alternative set of risk control activities when a 
pipeline segment changes class. NGPL recognizes that a population 
increase along the pipeline increases risk due to the potentially 
larger consequences associated with a pipeline leak or rupture, and the 
possible increase in third-party excavations. NGPL will examine a set 
of risk control activities that includes but is not limited to:
     Internally inspecting class change segments which they 
would not otherwise be required to perform under current regulations;
     Internally inspecting an extended length of pipe on either 
side of each class change segment will further extend the benefits of 
better integrity analysis;
     Repairing anomalies in accordance with an NGPL-specified 
procedure;
     Performing enhanced third party damage prevention 
activities along the extended segment of pipeline;
     Performing enhanced third party damage prevention 
activities at other locations identified by NGPL to be the most 
susceptible to third party damage due to increasing population or 
construction; and
     Performing in-line inspections and repair of other 
pipeline segments identified by NGPL as having high relative risk, 
beyond those where population has increased.
    NGPL will determine if performing these alternative risk control 
activities will reduce risk and produce superior performance than 
complying with the regulations. NGPL will design the internal 
inspection and associated repair activities to verify the condition of 
the pipe, and reduce the likelihood of pipe failure due to loss of wall 
thickness resulting from corrosion or other damage to the pipe. It will 
design the

[[Page 46501]]

enhanced third-party damage prevention activities to directly address 
the source of increased risk due to the population expansion, and to 
address one of the largest contributors to risk on the pipeline. NGPL 
believes that pipe replacement alternatives may reduce risks to the 
public, to workers removing and replacing pipe, and to the environment. 
Other relatively higher risk segments of the pipeline could benefit 
from resources that would otherwise be allocated to pipe replacement. 
NGPL will consider the risks and risk reduction associated with all 
possible approaches before proposing the best approach at any given 
location.
    NGPL will work with OPS, the states, and other stakeholders during 
the demonstration project to confirm that these alternative activities 
will achieve superior protection beyond what is achievable through 
compliance with the current regulations.

Alternatives to Currently Allowed Options for In-Service Repair of 
Pipes (192.711/713/715/717/719)

    The current regulations define a set of acceptable ways of 
repairing defects in pipelines. Considerable research has been 
performed over the last decade to investigate, test, and demonstrate 
other means of repair.
    NGPL will investigate an alternative in-service repair technique 
based on the most recent research in this area. This technique, 
referred to as direct weld deposition repair, directly deposits weld 
metal on the pipeline damage or corrosion. This technique can be used 
on sections of the pipe (e.g. bends in the pipe) and on pipeline 
components (e.g. pipe fittings), where other current in-service repair 
techniques cannot be used. NGPL will work with OPS, the states, and 
other stakeholders to define the specific conditions and procedures 
under which this alternative repair technique can produce superior 
performance.

Monitoring Demonstration Project Effectiveness

    The NGPL Demonstration Project includes a comprehensive approach to 
performance monitoring that OPS believes will provide superior 
protection of public safety and the environment, and achieve other 
project objectives. A key element of this monitoring plan is a set of 
programmatic performance measures to track the growth and 
institutionalization of risk management within the company, measure the 
effectiveness of the NGPL Risk Management Program and Process in 
achieving stated expectations, and measure the effectiveness of 
specific risk control activities. NGPL will report performance 
measurement data and project progress regularly to OPS throughout the 
demonstration period. This information, as well as periodic OPS audits, 
will assure accountability for improved performance.
    NGPL has provided a work plan for completing the steps of this 
project. This work plan includes scheduled interaction between NGPL and 
OPS, such as NGPL's sharing with OPS appropriate project information 
through Intranet/Internet access on its risk management program, and 
OPS and affected states observing internal company assessment 
activities. OPS will audit NGPL's progress throughout the project to 
verify that key milestones are completed.
    OPS believes this interaction will help confirm the continuing 
improvement in NGPL's Risk Management Program, and help OPS review and 
confirm NGPL's analysis of the expected risk-reduction from the 
proposed risk control alternatives. OPS will also be able to verify the 
technical basis for concluding that these alternatives will provide 
superior safety.

6. Regulatory Perspective

Why is OPS Considering This Project?

    OPS has carefully and extensively reviewed NGPL's proposed Risk 
Management Demonstration Project. OPS believes that NGPL is committed 
to building on its current risk management system to develop and 
document a formal risk management program and set of implementing 
procedures corresponding to the requirements of the Risk Management 
Program Standard. NGPL senior management has demonstrated its 
commitment to improved safety and environmental protection through risk 
management. OPS believes that the technical and managerial processes 
included in the NGPL Risk Management Program will allow risk control 
alternatives to be defined that can provide superior performance.
    OPS also believes that the NGPL demonstration project will help OPS 
achieve the overall goals of the Risk Management Demonstration Program. 
In particular, this project will provide OPS with increased and better 
quality data about potential pipeline risks and activities to address 
those risks. These previously unavailable data will increase OPS's 
knowledge and awareness about potential pipeline threats, provide 
earlier opportunity to consider appropriate risk control options, and 
thereby support a more effective regulatory role in improving safety 
and environmental protection. Further, OPS believes that NGPL's 
proposal indicates the potential of developing and demonstrating 
systematic processes to both quantitatively and qualitatively determine 
the relative risk-reduction benefits of alternative safety practices so 
that the effect of one set of risk control activities can be compared 
with another.
    NGPL has demonstrated a strong commitment to the use of 
quantitative models, where appropriate, to examine the relative risks 
associated with alternative risk control practices. Including NGPL in 
the risk management demonstration program will allow OPS to gain 
further insights on using such models in developing the technical 
justification for risk control alternatives that achieve superior risk 
reduction. Use of these models will help to evaluate the results of 
other company risk management projects and solidify the demonstration 
of superior safety results from company risk management programs.
    NGPL will develop and use company Intranet-based systems to promote 
communication within the company about its risk management program and 
the results of its risk analysis and risk-based decision making. NGPL 
is willing to provide OPS access to a company-operated intranet site 
containing risk information, audit findings, and project scheduling. 
This provides a means of sharing NGPL risk information directly with 
OPS and allowing immediate performance monitoring of the project. This 
is an innovative feature of the NGPL risk management project that may 
contribute to the success of the entire pipeline risk management 
program through developing enhanced systems and methods to report and 
share risk information and monitor performance.
    NGPL has also included in its work plan, development of an External 
Communications Plan that defines planned information exchange with 
contractors, land owners, local safety officials, local emergency 
planning groups, and other stakeholders.

How Will OPS Oversee This Project?

    After NGPL's Risk Management Demonstration Project is approved, the 
PRT consisting of OPS headquarters and regional staff and state 
pipeline safety officials who have been reviewing the proposal, will 
monitor the project. The PRT is designed to be a more comprehensive 
oversight process that draws maximum technical experience and 
perspective from all affected OPS regional and headquarters offices, 
and from any affected state agencies that

[[Page 46502]]

would not normally provide oversight on interstate transmission 
projects.
    The PRT will conduct periodic risk management audits to observe 
company performance of the specific terms and conditions of the OPS 
Order authorizing this Demonstration Project. OPS is developing a 
detailed audit plan, tailored to the unique requirements of the NGPL 
Demonstration Project. This plan will describe the audit process (e.g., 
types of inspections, methods, observation of company review of risks 
and risk control options, frequency of audit), as well as the specific 
requirements for reporting information and performance measurement data 
to OPS.
    OPS retains its full authority to administer and enforce all 
regulations governing pipeline safety. As previously discussed, NGPL 
may later be exempted from particular regulations if it demonstrates 
that specific risk control alternatives provide superior levels of 
safety to regulatory compliance. (Such alternatives would become part 
of the Order and would be monitored.) Should Demonstration Project 
performance or other subsequent information indicate that superior 
levels of safety have not been achieved or are unlikely to continue to 
be achieved, then OPS may require NGPL to modify the alternative or 
return to complying with the previously exempted regulation.

Information Provided to the Public

    OPS has previously provided information to the public about the 
NGPL project, and has requested public comment, using many different 
sources.
    1. OPS aired several electronic ``town meetings'' enabling viewers 
of the two-way live broadcasts to pose questions and voice concerns 
about candidate companies (including NGPL).
    2. An earlier Federal Register notice (62 FR 53052; October 10, 
1997) informed the public that NGPL 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.
    3. Since August 1997, OPS has used an Internet-accessible data 
system called the Pipeline Risk Management Information System (PRIMIS), 
available via the OPS Home Page at http://ops.dot.gov, to collect, 
update, and exchange information about all demonstration candidates, 
including NGPL.
    4. At a November 19, 1997, public meeting OPS hosted in Houston, 
TX, NGPL 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, and March 26, 1998.)
    5. OPS will provide a prospectus, which includes a map of the 
demonstration sites, to State officials and community representatives 
who may be interested in reviewing project information, providing 
input, or monitoring the progress of the project.
    At this point, OPS has received no public comment on NGPL's 
proposal. This notice is OPS's final request for public comment before 
OPS intends to approve NGPL's participation in the Demonstration 
Program under the terms of the work plan.

    Issued in Washington, DC on August 26, 1998.
Richard B. Felder,
Associate Administrator, Office of Pipeline Safety.

Appendix A: NGPL Work Plan

               Implementation Schedule with Key Milestones              
------------------------------------------------------------------------
      #        Milestone description                 Date               
------------------------------------------------------------------------
1............  Program Development..                                    
1.1..........  Complete development   4th Quarter 1998.                 
                and description of                                      
                investigative risk                                      
                identification and                                      
                assessment processes.                                   
1.2..........  Complete development   4th Quarter 1998.                 
                and description of                                      
                processes for                                           
                integrating risk                                        
                information from                                        
                various sources into                                    
                linked risk database.                                   
1.3..........  Complete development   4th Quarter 1998.                 
                and description of                                      
                processes for                                           
                identifying and                                         
                selecting risk                                          
                control activities.                                     
1.4..........  Complete development   1st Quarter 1999.                 
                of NGPL Risk                                            
                Management Program                                      
                Manual which                                            
                describes processes                                     
                and assigns                                             
                responsibilities.                                       
2............  Assurance of Superior                                    
                Performance for                                         
                Phase 1 Projects.                                       
2.1..........  Describe the           4th Quarter 1998.                 
                technical approach                                      
                (including a                                            
                description of the                                      
                models, algorithms,                                     
                data sources, and                                       
                expert processes)                                       
                that will be used to                                    
                assess and compare                                      
                the risk reduction                                      
                expected from the                                       
                proposed class                                          
                location change                                         
                alternatives and                                        
                compliance with                                         
                current regulations.                                    
2.2..........  Describe the           4th Quarter 1998.                 
                technical approach                                      
                (including a                                            
                description of the                                      
                models, algorithms,                                     
                data sources, and                                       
                expert processes)                                       
                that will be used to                                    
                assess and compare                                      
                the risk reduction                                      
                expected from the                                       
                proposed welding                                        
                repair alternatives                                     
                and compliance with                                     
                current regulations.                                    
2.3..........  Present the            2nd Quarter 1999.                 
                preliminary results                                     
                of the analyses that                                    
                lead to the                                             
                conclusion that                                         
                superior performance                                    
                will result from the                                    
                proposed class                                          
                location risk                                           
                control alternatives.                                   
2.4..........  Present the            2nd Quarter 1999.                 
                preliminary results                                     
                of the analyses that                                    
                lead to the                                             
                conclusion that                                         
                superior performance                                    
                will result from the                                    
                proposed welding                                        
                repair alternatives.                                    
2.5..........  Complete initial       2nd Quarter 1999.                 
                enhancements to Risk                                    
                and Environmental                                       
                Management (REM)                                        
                database.                                               
2.6..........  Present the final      4th Quarter 1999.                 
                results of the                                          
                analyses that lead                                      
                to the conclusion                                       
                that superior                                           
                performance will                                        
                result from the                                         
                proposed class                                          
                location risk                                           
                control alternatives.                                   
2.7..........  Present the final      4th Quarter 1999.                 
                results of the                                          
                analyses that lead                                      
                to the conclusion                                       
                that superior                                           
                performance will                                        
                result from the                                         
                proposed welding                                        
                repair alternatives.                                    
3............  Performance Measures.                                    
3.1..........  Develop performance    4th Quarter 1998.                 
                measures to monitor                                     
                the effectiveness of                                    
                the overall NGPL                                        
                Risk Management                                         
                Program.                                                
3.2..........  Develop performance    4th Quarter 1998.                 
                measures to monitor                                     
                the effectiveness of                                    
                proposed risk                                           
                control activities                                      
                to produce superior                                     
                performance                                             
                (including baseline                                     
                levels, and expected                                    
                levels).                                                
3.3..........  Produce a Performance  1st quarter 1999.                 
                Monitoring Plan that                                    
                incorporates the                                        
                selected performance                                    
                measures, and                                           
                defines the                                             
                processes and                                           
                responsibilities for                                    
                collecting,                                             
                analyzing, and                                          
                reporting                                               
                performance data.                                       
3.4..........  Produce and provide    1st Quarter 2000 and as needed    
                OPS and other          thereafter, but not to exceed 18 
                stakeholders a         months through demo phase.       
                Performance                                             
                Monitoring report                                       
                that documents the                                      
                status and progress                                     
                of the program.                                         
4............  Communication &                                          
                Information Exchange.                                   

[[Page 46503]]

                                                                        
4.1..........  Complete External      4th Quarter 1998.                 
                Communications Plan                                     
                that defines planned                                    
                information exchange                                    
                with contractors,                                       
                land owners, the                                        
                public, local safety                                    
                officials, local                                        
                emergency planning                                      
                groups, and other                                       
                stakeholders.                                           
4.2..........  Conduct Risk           1st Quarter 1999 and as needed    
                Management             thereafter, but not to exceed 18 
                information meetings   months through demo phase.       
                with affected local                                     
                emergency planning                                      
                committees, local                                       
                officials, and land                                     
                owners.                                                 
4.3..........  Meet with OPS to       1st Quarter 1999 and as needed    
                discuss program        thereafter, but not to exceed 18 
                progress and status.   months through demo phase.       
4.4..........  Provide OPS summary    4th Quarter 1999.                 
                of consolidated risk                                    
                information                                             
                indicating the major                                    
                sources of risk on                                      
                the NGPL pipelines                                      
                and actions being                                       
                taken or planned by                                     
                NGPL to address                                         
                these risks.                                            
4.5..........  Develop internal       4th Quarter 1999.                 
                electronic                                              
                information and                                         
                communication system                                    
                that will provide                                       
                all employees easy                                      
                access to key risk                                      
                management                                              
                information                                             
                (including                                              
                information in                                          
                NGPL's Computer                                         
                Action Tracking and                                     
                Trending System, the                                    
                Risk and                                                
                Environmental                                           
                Management database,                                    
                and other risk-                                         
                related databases).                                     
4.6..........  Provide OPS            1st Quarter 2000.                 
                controlled Internet                                     
                access to relevant                                      
                portions of the NGPL                                    
                electronic                                              
                information system                                      
                to facilitate                                           
                reporting and                                           
                information exchange.                                   
5............  Selection of Phase 2                                     
                Projects.                                               
5.1..........  Develop and present    2nd Quarter 1999.                 
                to OPS an analysis/                                     
                review/approval                                         
                process for                                             
                expanding Phase 1                                       
                projects to other                                       
                portions of the NGPL                                    
                system.                                                 
5.2..........  Submit list of         3rd Quarter 1999.                 
                additional Phase 2                                      
                projects to OPS,                                        
                including the                                           
                anticipated                                             
                technical approach                                      
                for establishing                                        
                superior performance.                                   
6............  Assurance of Superior                                    
                Performance for                                         
                Phase 2 Projects.                                       
6.1..........  Present results of     3rd Quarter 1999.                 
                analyses to expand                                      
                Phase 1 alternatives                                    
                to other portions of                                    
                the NGPL system.                                        
6.2..........  Present results of     1st Quarter 2000.                 
                analyses                                                
                demonstrating                                           
                superior performance                                    
                for other selected                                      
                Phase 2 alternatives.                                   
------------------------------------------------------------------------

Appendix B: Environmental Assessment

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 Natural Gas Pipe Line Company's (NGPL) 
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. Section 4332), the 
Council on Environmental Quality regulations (40 CFR Sections 1500-
1508), and Department of Transportation Order 5610.1c, Procedures for 
Considering Environmental Impacts.

B. Description of Proposed Action

    NGPL will conduct a demonstration project encompassing its entire 
pipeline system. Specific risk control activities will be investigated 
for four locations in the NGPL system: two locations in Liberty County, 
Texas; one location in Lamar County, Texas; and one location in Will 
County, Illinois. NGPL has adopted a Risk Management Program and 
Process to institutionalize risk management throughout the company. The 
proposed project's primary objective is to demonstrate that 
implementation of NGPL's Risk Management Program and Process will lead 
to superior performance, improved safety and environmental protection.
    NGPL's Risk Management Program integrates four major components: 
the company Pipeline Integrity Process, Management of Change Process, 
Modification of Standards Procedure, and Compliance Assessment 
Procedures. The formalized NGPL Risk Management Program will be 
documented in the course of the demonstration project and will fully 
conform to the Risk Management Program Standard. During the 
demonstration project, NGPL will continue to:
     actively investigate potential risk sources in pipeline 
operations;
     integrate information from the four components listed 
above to form a comprehensive understanding of risk associated with 
operation of the NGPL system and allocate resources to determine 
effective and efficient risk control alternatives;
     institutionalize NGPL's Risk Management Program company-
wide with specific roles, responsibilities, accountabilities, and 
effective documentation; and
     seek input from and provide information to company 
employees, OPS, and stakeholders to continually improve NGPL's Risk 
Management Program and the understanding of the risk management/ 
engineering process.
    As a result of a comprehensive review of NGPL's risk management 
demonstration project, the Office of Pipeline Safety (OPS) proposes to 
approve this project for participation in the Demonstration Program.
    The activities below would be included in an Order formally 
approving the NGPL demonstration project:
     Share information with OPS concerning the specific risks 
identified for NGPL pipeline segments;
     Share information with OPS concerning the preventive and 
risk control activities NGPL has identified and analyzed to address 
these risks and their relative priority;
     Share information with OPS concerning the technical basis 
for establishing alternative risk control

[[Page 46504]]

activities that achieve superior safety and environmental protection;
     Share information with OPS concerning the lessons learned 
on institutionalizing risk management programs to help OPS in 
evaluating the effectiveness of risk management programs, including 
information on the use of quantitative risk assessment and 
prioritization models where appropriate;
     Track, monitor, and report performance measures selected 
to determine the effectiveness of the NGPL risk management program; and
     Provide OPS access to risk management information through 
the NGPL company intranet-based information systems.

Monitoring Demonstration Project Effectiveness

    The NGPL Demonstration Project includes a comprehensive approach to 
performance monitoring that assures the superior protection of public 
safety and the environment, and achieves other project objectives. A 
key element of this monitoring plan is a set of programmatic 
performance measures to track the growth and institutionalization of 
risk management within the company, and measure the effectiveness of 
the NGPL Risk Management Program and Process in achieving stated 
expectations.
    NGPL will report performance measurement data and project progress 
regularly to OPS throughout the demonstration period. This information, 
as well as periodic OPS audits, will assure accountability for improved 
performance. More detailed descriptions of all aspects of the NGPL 
proposal and OPS rationale for approving the project are provided in 
the Internet-accessible data system called the Pipeline Risk Management 
Information System (PRIMIS), available to the public via the OPS Home 
Page, at http://ops.dot.gov.

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 June, 1997, NGPL 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 NGPL's 
proposal will provide superior safety and environmental protection, and 
is prepared to finalize the agreement with NGPL on the provisions for 
the demonstration project.

D. Alternatives Considered

    OPS has considered three alternatives: approval of the NGPL risk 
management demonstration project as proposed in NGPL's application; 
denial of the NGPL demonstration project; or approval of the project 
with certain modifications to NGPL's application.
    OPS's preferred alternative is to approve the NGPL demonstration 
project. OPS is satisfied that the proposal will not significantly 
affect the surrounding environment. By approving the NGPL demonstration 
program, OPS is not approving the implementation of any risk control 
alternatives or exemptions from regulations at this time. However, 
later during the demonstration project, NGPL may propose, and OPS may 
approve, alternatives to the current regulations. NGPL will need to 
demonstrate that any alternatives provide superior safety and 
environmental protection to the current regulations. We will amend this 
environmental assessment to consider the impact of any such 
alternatives on the environment.
    With approval of this project, NGPL will provide OPS with risk 
assessment information on the pipeline system exceeding that available 
through the current regulatory process. OPS's access to NGPL's company 
Intranet-based risk information system provides a high level of 
information sharing and provides OPS an opportunity to investigate new, 
efficient tools for obtaining information and communicating with 
pipeline companies.
    The project is expected to lead to superior levels of safety and 
environmental protection than provided under current regulatory 
requirements, because of the identification and analysis of effective 
risk control alternatives that may be approved for future 
implementation. In the meantime, increased sharing between OPS and NGPL 
about potential pipeline risks will increase OPS's knowledge and 
awareness about potential pipeline threats, provide earlier opportunity 
to consider appropriate risk control options, and thereby support a 
more effective regulatory role in improving safety and environmental 
protection.
    NGPL's use of quantitative models in its analysis of alternatives 
will also provide OPS practical insights concerning the usefulness of 
quantitative tools and methods that are applicable to the entire risk 
management demonstration program.
    OPS and NGPL will carefully monitor and, if necessary, improve the 
effectiveness of the risk control program and processes throughout the 
demonstration period.
    If OPS denied the project, it would lose valuable information 
concerning the sources of risks to NGPL's pipeline system and the most 
effective means of managing these risks. Denial would also 
significantly diminish OPS's ability to evaluate the effectiveness of 
an institutionalized, integrated, and comprehensive risk management 
program in producing superior performance, and would hinder OPS's 
ability to satisfy the objectives of the Risk Management Demonstration 
Program, and the requirements of the previously mentioned Presidential 
Directive. Denial would also result in the loss of insights regarding 
the use of quantitative models and the loss of opportunities to 
investigate new methods of obtaining information from pipeline 
companies through Intranet-based information systems.
    All of the issues raised by OPS, state regulators, and other 
stakeholders about NGPL's proposed project have been discussed within 
the consultative process, resolved to OPS's satisfaction, and reflected 
in NGPL's application. Thus, we do not see any need to modify NGPL's 
proposal.

E. Affected Environment and Environmental Consequences

    The NGPL gas transmission pipeline system covers approximately 
13,000 miles in 14 states. The product transported in the NGPL system 
is pressurized natural gas, a flammable gas. If a pipeline leaks or 
ruptures, the product could be released to the surrounding area and, in 
the presence of an ignition source, could be ignited, causing fire or 
explosion. The likelihood of such occurrences leading to environmental 
damage is currently very low, as evidenced by NGPL-specific and 
industry-wide operating history.

[[Page 46505]]

    OPS, at this time, is not approving any exemptions to the current 
regulations. During the course of the project, NGPL will examine the 
risk-reduction benefits of specific risk control activities that may 
improve safety and environmental protection. NGPL is focusing on two 
locations in Liberty County, Texas; one location in Lamar County, 
Texas; and one location in Will County, Illinois. If and when NGPL 
demonstrates to OPS's satisfaction that such activities can be expected 
to result in improved safety and environmental protection compared to 
the current regulations, then OPS will amend the risk management Order 
to allow NGPL to implement these alternatives. OPS will also make an 
environmental assessment of any proposed alternatives, to determine 
their environmental impact.
    Before entering into consultations with NGPL, OPS determined that 
NGPL was a good demonstration program candidate based on an examination 
of the company's safety and environmental compliance record, its 
accident history, and its commitment to working with OPS to develop a 
project meeting the Demonstration Program goals.
    OPS records show that since 1984, NGPL has filed 49 reportable 
incidents, which is typical for a company of its size. Causes include 
corrosion (24), construction or material defects (8), outside forces 
(8), and other miscellaneous or unknown causes (9). The most 
significant accident, causing eleven deaths and three injuries, 
occurred October 3, 1989, when a fishing boat in the Gulf of Mexico 
near High Island, Texas, struck a sixteen inch diameter line about one 
half mile offshore at a water depth of approximately ten feet. OPS 
determined that NGPL violated no regulations in connection with this 
incident, and no enforcement actions resulted. Following the incident, 
OPS promulgated regulations to protect against future incidents 
involving submerged pipelines. NGPL complied by instituting a regular 
inspection program to assess the integrity of the pipelines in Gulf of 
Mexico shallow waters, exceeding the inspection frequency required by 
the regulations. The NGPL offshore damage protection program determines 
the available soil backfill protection, identifies potential or actual 
damage to the facilities, and makes repairs where needed. In addition, 
NGPL co-chaired a task force that has resulted in several offshore 
damage prevention/public awareness aids and initiatives, such as an 
educational video, an annual luncheon and program for mariners, 
development and installation of pictograph warning signs, and a 
developing offshore one-call system.
    On March 29, 1998, NGPL experienced a corrosion failure of a 
thirty-six inch diameter pipeline approximately five miles south of 
Corrigan, Texas, in a forested and relatively isolated part of Polk 
County, Texas. This failure resulted in some fire damage, but no harm 
to people. NGPL will pressure test approximately 36 miles of pipeline 
in the area where the failure occurred to specifically address the 
cause of this incident. NGPL also will examine approximately 600 miles 
of pipeline in the area to determine if the coatings and cathodic 
protection are providing adequate protection to reduce the future 
chance of this type of failure. OPS is monitoring NGPL's response to 
this incident and is presently conducting an accident investigation in 
conjunction with a standard audit of the affected pipeline.
    At this time, OPS believes that the actions NGPL will take to 
address the specific causes of the incident, together with the system-
wide application of their proposed Risk Management Program, are an 
adequate response to the incident and demonstrate a continued 
commitment to safety.
    NGPL will incorporate information from all incidents into its 
proposed Risk Management Program to further reduce the likelihood of 
future incidents. NGPL's Program will also include frequent feedback 
from field personnel on the condition of the pipeline, risk modeling of 
the pipeline to provide faster and more thorough assessment of threats 
to pipeline integrity, and application of new technology from recent 
research to further reduce risk.

F. Environmental Justice Considerations

    In accordance with Executive Order 12898 (Federal Actions to 
Address Environmental Justice in Minority and Low-Income Populations), 
OPS has considered the effects of the demonstration project on minority 
and low-income populations. As explained above, this project, 
initially, will not result in any significant environmental impacts, 
because NGPL will be complying with current applicable pipeline safety 
regulations. Residents near the facility will have the same level of 
protection that they presently have, regardless of the residents' 
income level or minority status. Therefore, the proposed project does 
not have any disproportionately high or adverse health or environmental 
effects on any minority or low-income populations near the 
demonstration facility. OPS will only approve any proposed alternative 
risk control activities if NGPL can demonstrate that these alternatives 
provide greater safety and environmental protection than compliance 
with existing regulations.

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

    OPS has made the following documents publicly available, and 
incorporates them by reference into this environmental assessment:

(1) ``Demonstration Project Prospectus: Natural Gas Pipe Line 
Corporation'', August 1998, available by contacting Elizabeth M. 
Callsen at 202-366-4572. Purpose is to reach the public, local 
officials, and other stakeholders, and to solicit their input about the 
proposed project. Will be mailed to over 300 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.
(2) NGPL ``Application and Work Plan for DOT-OPS Risk Management 
Demonstration Program'', available in Docket No. RSPA-98-3893 at the 
Dockets Facility, U.S. Department of Transportation, Plaza 401, 400 
Seventh Street, SW, Washington, DC 20590-0001, (202)366-5046.
(3) ``OPS Project Review Team Evaluation of the NGPL Demonstration 
Project''.
(4) Notice of intent to approve the NGPL Demonstration Project 
(published concurrently with this environmental assessment).

    OPS has previously provided information to the public about the 
NGPL project, and has requested public comment, using many different 
sources. OPS aired four electronic broadcasts (June 5, 1997; September 
17, 1997; and December 4, 1997; and March 1998) reporting on 
demonstration project proposals (the last three of which provided 
specific information on NGPL's proposal). An earlier Federal Register 
notice (62 FR 53052; October 10, 1997) informed the public that NGPL 
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, 1997 OPS has used an Internet-accessible data system 
called the Pipeline Risk Management Information System (PRIMIS), 
available

[[Page 46506]]

via the OPS Home Page at http://ops.dot.gov, to collect, update, and 
exchange information about all demonstration candidates, including 
NGPL.
    At a November 19, 1997, public meeting OPS hosted in Houston, TX, 
NGPL 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 and March 26, 1998.) No 
issues or concerns about NGPL's proposal have been raised.

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
Tom Fortner, OPS/U.S. Department of Transportation
Ivan Huntoon, OPS/U.S. Department of Transportation
Donald Moore, OPS/U.S. Department of Transportation
Rodrick Seeley, OPS/U.S. Department of Transportation
Dallas Rea, OPS/U.S. Department of Transportation
Bruce Hansen, OPS/U.S. Department of Transportation
Elizabeth Callsen, OPS/U.S. Department of Transportation
Steve Smock, Illinois Commerce Commission
Edward Steele, Ohio Public Utilities Commission
Mary McDaniel, Railroad Commission of Texas
Jim vonHerrmann, Cycla Corporation (consultant)
Andrew McClymont, Cycla Corporation (consultant)
Persons/Agencies Receiving Briefings/Project Prospectus/Requests for 
Comment
    Regional Response Team (RRT), Regions 5 and 6, 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: Richard Karl and Charles 
Gazda, EPA, and Capt. Christopher Desmond and Capt. Gregory Cope, Coast 
Guard).

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.

[FR Doc. 98-23442 Filed 8-31-98; 8:45 am]
BILLING CODE 4910-60-P