[Federal Register Volume 65, Number 238 (Monday, December 11, 2000)]
[Notices]
[Pages 77422-77424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31339]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

[Docket No. RSPA-00-8453; Notice 1]


Pipeline Safety: Intent To Consider Waiver and Environmental 
Assessment of Waiver for Tennessee Gas Pipeline Company

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

ACTION: Notice of intent to consider waiver and environmental 
assessment of waiver.

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SUMMARY: The Office of Pipeline Safety (OPS) is conducting a Risk 
Management Demonstration Program with pipeline operators to determine 
how risk management might be used to complement and improve the 
existing Federal pipeline safety regulatory process. OPS selected 
Tennessee Gas Pipeline Company (TGP) as a candidate for participation 
in the Demonstration Program; subsequently, OPS and TGP held 
discussions as part of a consultation process. During the consultation, 
TGP identified a portion of its system where it believed performing 
alternative risk control activities in lieu of compliance with current 
regulations would result in a comparable margin of safety and 
environmental protection. TGP submitted an application to OPS to waive 
certain regulatory requirements relating to class location changes for 
four pipeline segments. TGP's application stated that TGP would carry 
out the proposed alternative risk control activities in lieu of 
compliance with these regulations.
    This Notice announces OPS's intent to consider granting a waiver to 
allow TGP to perform the proposed alternative risk control activities. 
OPS has reviewed the terms of this waiver and found them to be 
appropriate. Among the terms of the waiver that were crucial to OPS's 
decision to consider granting the waiver were TGP's selection as a 
candidate for the Risk Management Demonstration Program and TGP's 
subsequent participation in a consultation process with OPS. In 
addition, OPS has found that the overall effect of the waiver is not 
inconsistent with pipeline safety, because TGP's proposed Activities 
achieve a margin of safety and environmental protection comparable to 
the margin achieved by compliance with current regulations. Within 90 
days of OPS's adoption of new rules related to integrity management of 
natural gas pipelines \1\, TGP will be required to re-evaluate the 
effects of its proposed alternative risk control activities and report 
to OPS on whether the terms of the waiver continue to be appropriate 
and whether the overall effect of the waiver remains consistent with 
pipeline safety. This Notice also provides an environmental assessment 
of TGP's Activities. Based on this environmental assessment, OPS has 
preliminarily concluded that this waiver will have no significant 
environmental impacts.
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    \1\ OPS is considering whether or not additional regulations to 
enhance pipeline integrity in high consequence areas is warranted 
for natural gas transmission pipelines. Additional information on 
integrity management rule-related activities is available on the OPS 
web site at http://ops.dot.gov.
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    OPS seeks public comment on the proposed waiver and the 
environmental assessment, so that it may consider and address these 
comments before making a final decision on this matter.

ADDRESSES: OPS requests that comments to this Notice or about this 
environmental assessment be submitted on or before January 10, 2001, so 
they can be considered before a final determination is made whether to 
grant

[[Page 77423]]

the waiver to TGP. Written comments should be sent to the Dockets 
Facility, U.S. Department of Transportation, Plaza 401, 400 Seventh 
Street, SW., Washington, DC 20590-0001. Comments should identify the 
docket number RSPA-00-8453. Persons should submit the original comment 
document and one (1) copy. Persons wishing to receive confirmation of 
receipt of their comments must include a self-addressed stamped 
postcard. The Dockets Facility is located on the plaza level of the 
Nassif Building in Room 401, 400 Seventh Street, SW., Washington, DC. 
The Dockets Facility is open from 10 a.m. to 5 p.m., Monday through 
Friday, except on Federal holidays. You may also submit comments to the 
docket electronically. To do so, log on to the DMS Web at http://dms.dot.gov. Click on Help & Information to obtain instructions for 
filing a document electronically.

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/.

SUPPLEMENTARY INFORMATION:

1. Background

    The Accountable Pipeline Safety and Partnership Act of 1996 
authorizes the Secretary of Transportation to establish risk management 
demonstration projects in partnership with operators of gas and liquid 
pipeline facilities, pursuant to U.S.C. 60126. In 1997, OPS announced 
that Tennessee Gas Pipeline Company (TGP) and eleven other pipeline 
companies would be candidates for participation in the Risk Management 
Demonstration Program.2 3 Following this announcement, a 
consultation process commenced, in which an OPS Project Review Team 
(PRT) and TGP held discussions on the potential participation of TGP in 
the Demonstration Program. The consultation process involved technical 
scrutiny by OPS of TGP's safety practices and pipeline integrity.
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    \2\ Candidates for the Pipeline Risk Management Demonstration 
Program (62 FR 40135, July 25, 1997).
    \3\ Pipeline Safety: Remaining Candidates for the Pipeline Risk 
Management Demonstration Program (62 FR 53052, October 10, 1997).
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    During the course of the consultation process, TGP identified four 
pipeline segments in its system where it proposed to conduct risk 
control alternative activities (the ``Activities'') in lieu of the 
class location change requirements in 49 CFR 192.611. TGP submitted an 
application \4\ for a waiver of the requirements of 49 CFR 192.611 for 
the four segments (the ``waiver segments'') and implementation of the 
Activities in lieu of compliance. This document summarizes OPS's review 
of the Activities and evaluates the extent to which the terms of the 
waiver are appropriate and the overall effect of the waiver is not 
inconsistent with pipeline safety pursuant to 49 U.S.C. 60118(c).
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    \4\ Letter from D.K. Moore, Tennessee Gas Pipeline, to R.B. 
Felder, OPS, June 30, 1998.
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2. OPS Evaluation of TGP's Proposed Alternative Risk Control 
Activities

    Representatives from OPS Headquarters and Southern Region evaluated 
TGP's proposed Activities. OPS met with TGP to discuss the current risk 
assessment and risk control processes TGP uses, how these processes 
were used to identify and define the Activities, and the analysis of 
the protection achieved by the Activities compared to the protection 49 
CFR 192.611 provides. The evaluation also included an environmental 
assessment, which is described in Appendix A of this Notice. (Appendix 
A is available in the Dockets Facility. See the ADDRESSES Section 
above).
    The TGP System transports pressurized natural gas, which is lighter 
than air and flammable. If released as a result of a pipeline leak or 
rupture, natural gas can potentially ignite causing fires or 
explosions. Protection of the public and environment by the prevention 
of pipeline leaks and ruptures is the highest priority for OPS and TGP. 
A major review criterion for this evaluation is whether the Activities 
TGP has proposed will achieve a margin of safety and environmental 
protection comparable to that achieved through compliance with 49 CFR 
192.611. It is the preliminary opinion of OPS that implementing the 
proposed Activities will result in a comparable margin of safety and 
environmental protection.
    Once OPS has considered comments it receives in response to this 
Notice, OPS will make a final determination regarding whether to grant 
a waiver to TGP to allow implementation of the Activities in lieu of 
compliance with 49 CFR 192.611.

3. Alternative Risk Control Activity Locations

    The proposed Activities focus on controlling the risks in four 
pipeline segments located together in Tennessee. These waiver segments 
are located on the four parallel Lines 800-1, 500-1, 500-2, and 500-3, 
approximately 11.2 miles downstream of Compressor Station 860. The 
waiver segments lie in both Hickman and Dickson Counties, Tennessee. 
The specific milepost (M.P.) locations and lengths of the four segments 
are:

Line 800-1: From M.P. 860-1+10.70 to M.P. 860-1+11.60 (4745 feet)
Line 500-1: From M.P. 559-1+10.72 to M.P. 559-1+11.58 (4521 feet)
Line 500-2: From M.P. 559-2+10.77 to M.P. 559-2+11.57 (4200 feet)
Line 500-3: From M.P. 559-3+11.35 to M.P. 559-3+11.64 (1540 feet)

4. Description of Waiver: Alternative Risk Control Activities 
Designed To Provide Comparable Margin of Safety

4.1  Current Regulatory Requirements

    This section describes the current regulatory requirements in 49 
CFR 192.611 governing actions that must be taken by a pipeline operator 
when population density increases along a pipeline.
    OPS categorizes all locations along natural gas pipelines according 
to the population densities near the pipelines (see 49 CFR 192.5). 
Locations with the lowest population density (10 or fewer buildings 
intended for human occupancy within an area that extends 220 yards on 
either side of the centerline of any continuous one mile length 
pipeline) are designated as Class 1. As the population along a pipeline 
increases, the class location increases. 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 intended for 
human occupancy, or are areas where a pipeline lies within 100 yards of 
either a building or small, well-defined outside area (such as a 
playground, recreation area, outdoor theater, or other place of public 
assembly) that is occupied by 20 or more persons on at least 5 days a 
week for 10 weeks in any 12 month period. Class 4 locations are any 
class location unit where buildings with four or more stories above 
ground are prevalent (e.g. large office buildings).
    All four of the TGP waiver segments (identified in Section 3) have 
changed from Class 2 to Class 3.
    Pipeline safety regulations impose more stringent design and 
operational requirements as the class location increases. When a class 
location changes to a higher class (e.g., from Class 2 to Class 3), the 
operator must reduce the operating pressure on the pipeline to provide 
an additional margin of safety. The operator may be able to avoid 
reducing pressure, in some cases, if a pressure test on the pipe has

[[Page 77424]]

confirmed that a prescribed safety margin exists. In these cases, if a 
previous pressure test has not confirmed the prescribed safety margin, 
then the operator must test the pipe to confirm the margin. In other 
cases, the operator must reduce the pressure or replace the pipe with 
new pipe.
    TGP has stated that in order to provide reliable natural gas 
service to its customers, it cannot permanently reduce the operating 
pressure along the waiver segments. Consequently, in order to meet 
pipeline safety regulations, TGP would be required to conduct a 
requalification test or replace the pipe in the four waiver segments. 
In some portions of the waiver segments, current regulations would 
require TGP to replace the pipe. In other portions, current regulations 
allow TGP to conduct a requalification test (TGP has already tested 
these portions). By replacing the existing pipe with new pipe that has 
the prescribed design factor, TGP could eliminate the possibility that 
defects in the original materials and construction, as well as 
corrosion that may have occurred since installation, would result in a 
failure. By conducting a requalification test, TGP could verify the 
pipeline integrity.

4.2  TGP's Proposed Alternative Risk Control Activities

    For each waiver segment, TGP proposes to perform the following 
alternative risk control activities, with the objective of providing a 
margin of safety and environmental protection comparable to pipe 
replacement or requalification testing:
    5. Internally inspect the waiver segments using geometry and 
magnetic flux leakage in-line inspection tools, which are not required 
under current regulations. These tools reliably identify indications of 
wall loss (e.g. corrosion), as well as dents and gouges from initial 
construction damage or third party excavators working along the 
pipeline right-of-way. These internal inspections have been performed 
and the OPS Southern region has reviewed the inspection results.
    6. Internally inspect an extended length of pipe (the ``extended 
segments'') bordering each waiver segment to further extend the 
benefits of the integrity analysis. The extended segments cover the 
distance between Compressor Station 860 and mainline valves 861-1, 560-
1, 560-2, and 560-3, a distance of approximately 18.2 miles on each 
pipeline.
    7. Repair indications of corrosion, existing construction damage, 
and existing outside force damage identified by the internal 
inspection. TGP used more conservative investigation and repair 
criteria in the waiver segments and extended segments than is currently 
required by the regulations. The criteria call for investigation and 
repairs of small dents and anomalies that are well below the threshold 
where pipeline integrity might be compromised.
    8. Perform close-interval surveys on the waiver segments and 
extended segments, as an additional method to detect possible pipeline 
corrosion. Close-interval surveys are not required on these segments 
under current regulations. TGP has performed close-interval surveys on 
approximately 18.2 miles of pipe on each line .
    OPS has compared the expected risk reduction produced by the 
Activities to that which would be achieved by compliance with current 
regulations and concluded that the Activities will likely achieve a 
margin of safety and environmental protection comparable to the margin 
which would be achieved through compliance with 49 CFR 192.611. 
Furthermore, because of the resources saved by not having to replace 
pipe in the waiver segments, TGP will be able to assess the integrity 
of additional portions of its system, which reduces the overall risks 
along the TGP pipeline system.

5. OPS's Proposed Action

    Based on OPS's evaluation of TGP's proposed Activities, OPS is 
considering granting TGP a waiver from the pressure confirmation and 
pipe replacement requirements of 49 CFR 192.611.
    This waiver accepts TGP's implementation of the Activities in lieu 
of compliance with this requirement. In addition, TGP along with OPS, 
would be required to monitor the Activities' effectiveness.
    No more than 90 days after OPS adopts new rules related to 
integrity management of natural gas pipelines, TGP will be required to 
re-evaluate the terms and effects of this waiver and report to OPS on 
whether the terms of the waiver continue to be appropriate and whether 
the overall effect of the waiver remains consistent with pipeline 
safety. If, after reviewing the TGP evaluation and report, OPS 
determines that the terms of the waiver are no longer appropriate or 
that the overall effect of the waiver is inconsistent with pipeline 
safety, OPS will revoke the waiver and require TGP to comply with 49 
CFR 192.611 and all other applicable regulations.

6. Regulatory Perspective

Why Is OPS Considering This Waiver?

    OPS has determined that the terms of the waiver are appropriate and 
that the overall effect of the waiver is not inconsistent with pipeline 
safety. The following factors were considered when making this 
determination:
    1. The proposed activities will provide comparable margin of safety 
and protection for the environment and the communities in the vicinity 
of TGP's pipelines;
    2. The four waiver segments have a good integrity history, with no 
leaks recorded during operation or hydrostatic testing.
    3. TGP has internally inspected and conducted close-interval 
surveys on a total of 72.8 miles of pipe, including the waiver 
segments. These activities add protection against pipeline failures 
from corrosion, manufacturing and construction defects, and outside 
third-party damage along this full 72.8 mile length. Compliance with 49 
CFR 192.611 would require replacement of pipe or requalification tests 
within the waiver segments only (less than 3 miles of pipe), with no 
added protection for the extended segments (approximately 69 miles of 
pipe). The TGP Activities provide added protection by including the 
extended segments.
    4. TGP was selected as a candidate for the Risk Management 
Demonstration Program and has participated in a consultation process 
with OPS, which included an enhanced sharing with OPS of information 
related to the integrity TGP's pipeline.

How Will OPS Oversee the Activities?

    OPS retains its authority to enforce TGP's compliance with the 
pipeline safety regulations. OPS is only considering whether to grant a 
waiver from compliance with 49 CFR 192.611 at those four segments where 
TGP has demonstrated that its proposed Activities achieve a comparable 
margin of safety and environmental protection. Should any information 
subsequently indicate that the terms of the waiver are no longer 
appropriate or that the overall effect of the waiver is inconsistent 
with pipeline safety, then OPS retains its authority to revoke the 
waiver and require TGP to again comply with 49 CFR 192.611 and all 
other applicable regulations.
    This Notice is OPS's final request for public comment before OPS 
makes a final decision on whether to grant the waiver to TGP.

    Issued in Washington, DC, on December 5, 2000.
Stacey L. Gerard,
Associate Administrator for Pipeline Safety.
[FR Doc. 00-31339 Filed 12-8-00; 8:45 am]
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