[Federal Register Volume 66, Number 47 (Friday, March 9, 2001)]
[Notices]
[Pages 14256-14257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5825]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration (RSPA)

[Docket No. RSPA-00-8452; Notice 2]


Duke Energy; Grant of Waiver and Finding of No Significant Impact

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

ACTION: Notice of grant of waiver and finding of no significant impact.

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SUMMARY: The Office of Pipeline Safety (OPS) is approving a waiver of 
certain regulatory requirements relating to class location changes on 
fifteen natural gas pipeline segments (the ``waiver segments'') 
operated by Duke Energy (Duke) and is permitting Duke to carry out 
alternative risk control activities (the ``Activities'') in lieu of 
compliance with these requirements. The waiver segments are located on 
the three parallel lines 10, 15, and 25, downstream from the Mt. 
Pleasant Compressor Station. The waiver segments lie in Maury and 
Williamson Counties, Tennessee. The waiver segments include five 
locations in a 3-line system, ranging from 0.5 miles to 0.88 miles in 
length and totaling 12.2 miles.

Background

     In 1997, OPS selected Duke Energy (Duke) as a candidate for 
participation in the Risk Management Demonstration Program; 
subsequently, OPS and Duke held discussions as part of a consultation 
process. During the consultation, Duke identified a portion of its 
system where it believed performing alternative risk control activities 
(the ``Activities'') in lieu of compliance with current pipeline safety 
regulations addressing class location changes would result in a 
comparable margin of safety and environmental protection. While OPS and 
Duke continued to consult, Duke applied for a temporary waiver of 
certain regulatory requirements for the waiver segments and 
implementation of the Activities in lieu of compliance. Duke had 
previously reduced the operating pressure along the fifteen waiver 
segments in accordance with these requirements and sought to return the 
pipeline to its historical operating pressure. Duke had completed many 
of the proposed alternative risk control activities related to assuring 
integrity of the pipeline in the segments for which regulatory waiver 
was sought. Discussions continue between OPS and Duke regarding 
programmatic aspects of the company's risk management demonstration 
project.

Alternative Approach

    Rather than replacing pipe, as required for each waiver segment 
under 49 CFR Sec. 192.611 in order to increase operating pressure, Duke 
proposed to perform the following alternative risk control activities, 
with the objective of providing a margin of safety and environmental 
protection comparable to pipe replacement:
    1. Internally inspect the waiver segments using geometry and 
magnetic flux leakage in-line inspection tools, which are not required 
under current regulations. These tools 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.
    2. Internally inspect approximately 166 miles of additional pipe on 
the three parallel lines in the Mt. Pleasant Discharge. These internal 
inspections have been performed and the OPS Southern Region has 
reviewed the inspection results.
    3. Investigate dents upon completion of the dent inspections for an 
extended length of pipe (the ``extended segments'') bordering and 
including each waiver segment to further extend the benefits of the 
integrity analysis. The extended segments cover a length of pipe 
totaling 660 feet on both ends of each waiver segment. These internal 
inspections have been performed and the OPS Southern Region has 
reviewed the inspection results.
    4. Repair indications of corrosion, existing construction damage, 
and existing outside force damage identified by the internal 
inspection. Duke used more conservative investigation and repair 
criteria in the proposed waiver and extended segments than is currently 
required by the pipeline safety regulations. The criteria used by Duke 
call for investigation and repairs of small dents and anomalies that 
are well below the threshold where pipeline integrity might be 
compromised.
    5. Perform hydrostatic tests of the portions of Line 10 which have 
not previously been tested to 100 percent (SMYS). This includes two of 
the waiver segments, 2.5 miles northwest of Rally Hill in Maury County 
and 3.5 miles east-northeast of Arrington in Williamson County. These 
hydrostatic tests have been completed.
    6. Perform enhanced damage prevention activities including 
implementing selected recommendations from a recent study of one-call 
systems and damage prevention programs best practice, ``Common 
Ground''. Duke will also install, for a trial period of one year, the 
TransWave monitoring system covering all of the waiver segments. This 
system will be tested to determine its reliability and usefulness for 
detecting third-party encroachments (construction, excavation, etc.) in 
the pipeline right-of-way.

Notice 1

    In response to Duke's application and justification for performing 
the Activities in lieu of current regulatory requirements, OPS issued a 
Notice of Intent to Consider Waiver and Environmental Assessment of 
Waiver, inviting persons to submit written comments (65 FR 77419; 
December 11, 2000) (Notice 1). In that Notice, OPS explained its 
finding that Duke's implementation of the Activities in lieu of 
compliance with 49 CFR 192.611 is consistent with safety. OPS received 
no public comments in response to Notice 1.

OPS Review

    OPS has compared the expected risk reduction produced by the 
Activities to that which would be achieved by compliance with 49 CFR 
Sec. 192.611 and concluded that the Activities will likely achieve a 
comparable margin of safety and environmental protection.
    OPS has determined that the conduct of the Activities in lieu of 
compliance with 49 CFR Sec. 192.611 is consistent with pipeline safety. 
The following factors were considered when making this determination:
    1. The proposed Activities will provide a comparable margin of 
safety and protection for the environment and the communities in the 
vicinity of Duke's pipelines.
    2. Duke's risk-based justification of the alternatives to the class 
location change regulations is technically sound.
    3. The fifteen waiver segments have a good integrity history, with 
no leaks

[[Page 14257]]

recorded during operation or hydrostatic testing.
    4. Duke has internally inspected a total of 191 miles of pipe on 
the three parallel lines in the Mt. Pleasant discharge, including all 
of the waiver segments. These inspections provide added protection 
against pipeline failures from corrosion, manufacturing and 
construction defects, and outside third-party damage along the full 191 
mile length. Compliance with 49 CFR Sec. 192.611 would require 
replacement of pipe within the waiver segments only (approximately 12 
miles of pipe) with no added protection for the extended segments 
(approximately 181 miles of pipe). The proposed Activities provide 
added protection by including the additional pipe. Duke also conducted 
hydrostatic tests to 100% SMYS on Line 10. In addition, Duke has 
installed the TransWave system and will be evaluating it over the 
coming year.
    5. Duke was selected as a candidate for the Risk Management 
Demonstration Program and has participated in a rigorous consultation 
process with OPS, which required a greater sharing of information with 
OPS related to the integrity of Duke's pipeline. The consultation 
process is nearly complete and may result in acceptance of Duke into 
the Risk Management Demonstration Program including enforceable 
commitments for the additional risk control activities.

Action on Application for Waiver

    In accordance with the foregoing and by this order, OPS finds that 
Duke's requested waiver is consistent with pipeline safety. 
Accordingly, Duke's application for waiver from compliance with the 
requirements of 49 CFR 192.611 is granted, provided that Duke carries 
out all the alternative risk control activities described in the 
``Alternative Approach'' section of this notice. This waiver will 
expire upon approval of Duke's risk management demonstration project.
    OPS is considering whether or not additional regulations to enhance 
pipeline integrity in high consequence areas are 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. No more than 90 days after OPS adopts new rules 
related to integrity management of natural gas pipelines, Duke will be 
required to re-evaluate the terms and effects of this waiver and report 
to OPS on its findings. If final action is taken on Duke's risk 
management demonstration project and this waiver therefore expires 
earlier than 90 days after OPS adopts new rules related to integrity 
management of natural gas pipelines, then this re-evaluation will not 
be required.
    OPS will review Duke's report, evaluate Duke's assessment, and 
determine whether the waiver remains appropriate and consistent with 
pipeline safety. If the OPS evaluation finds that the waiver is no 
longer appropriate or no longer consistent with pipeline safety, then 
OPS will revoke the waiver and require Duke to comply with 49 CFR 
192.611 and all other applicable regulations.

Finding of No Significant Impact (FONSI)

    OPS has reviewed the Duke waiver for conformity 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 (DOT) Order 
5610.1c, Procedures for Considering Environmental Impacts. OPS 
conducted an Environmental Assessment of granting the Duke waiver (65 
FR 77419, ``Pipeline Safety: Intent to Consider Waiver and 
Environmental Assessment of Waiver for Duke Energy,'' December 11, 
2000).
    OPS received no public comment on the Environmental Assessment. 
Based on the analysis and conclusions of the Environmental Assessment, 
OPS has determined that no significant impacts on the environment are 
associated with granting this waiver. The Environmental Assessment is 
incorporated by reference into this FONSI.
    In summary, OPS believes that the Activities performed under the 
waiver by Duke in lieu of regulatory requirements are consistent with 
pipeline safety and environmental protection. Although the waiver is 
expected to provide net environmental benefits, these beneficial 
impacts are not expected to be significant, because of the minimal 
environmental impact associated with gas pipeline failures. In 
addition, if OPS denied the proposed waiver, Duke would be required to 
replace pipe in the waiver segments in order to increase operating 
pressure. Pipe replacement would likely introduce some adverse 
environmental impacts that are avoided with the proposed action. 
Denying the waiver request would likely result in Duke replacing pipe 
along portions of the waiver segments, thereby causing environmental 
disruption due to excavation activity.

    Issued in Washington, DC on January 23, 2001.
Jeffrey D. Wiese,
Acting Associate Administrator for Pipeline Safety.
[FR Doc. 01-5825 Filed 3-8-01; 8:45 am]
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