[Federal Register Volume 66, Number 160 (Friday, August 17, 2001)]
[Notices]
[Pages 43295-43298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-20721]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

[Docket No. RSPA-98-4034; Notice 16]


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

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

ACTION: Notice of intent to approve project modification and 
environmental assessment of modification.

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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. In December, 1998, 
OPS approved Natural Gas Pipeline Company of America (NGPL) \1\ as a 
participant in the Pipeline Risk Management Demonstration Program. 
Since its demonstration project was approved, NGPL has identified five 
segments in its system where it proposes to perform alternative risk 
control activities in lieu of compliance with the regulations 
addressing class location changes. This Notice announces OPS's intent 
to modify NGPL's Demonstration Project order to allow the proposed risk 
control alternatives (the ``Alternatives''). This Notice also provides 
an environmental assessment of NGPL's Alternatives. Based on this 
environmental assessment, OPS has preliminarily concluded that this 
proposed project modification will not have significant environmental 
impacts.
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    \1\ In 1998, NGPL was acquired by KN Energy, Inc. In October, 
1999, KN Energy merged with Kinder Morgan, Inc. The merged company 
is named Kinder Morgan, Inc. (KMI). NGPL now operates its pipeline 
system as a subsidiary of KMI. The scope of the Risk Management 
Demonstration Project remains limited to the NGPL system.
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    This Notice explains OPS's rationale for approving NGPL's 
Alternatives. OPS seeks public comment on the proposed demonstration 
project modification so that it may consider and address these comments 
before modifying the order to approve the alternatives.

ADDRESSES: OPS requests that comments to this Notice or about this 
environmental assessment be submitted on or before September 17, 2001 
so they can be considered before the modifications are approved. 
However, comments on this or any other demonstration project will be 
accepted in the Docket throughout the demonstration period. 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-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 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

    In December, 1998, OPS approved NGPL as a participant in the 
Pipeline Risk Management Demonstration Program \2, 3\. Since approval, 
as part of its development and application of risk management, NGPL has 
identified five pipeline segments in its system where it proposes to 
conduct risk control alternatives to the class location change 
requirements in 49 CFR Sec. 192.611. These alternative activities have 
been designed to achieve superior safety and environmental protection 
along these five segments. This document summarizes OPS's review of 
these alternatives and evaluates the safety and environmental impacts 
of this proposed project modification.
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    \2\ Pipeline Safety: Intent to Approve and Environmental 
Assessment for the Natural Gas Pipeline Company of America Pipeline 
Risk Management Demonstration Program [63 Federal Register 46497, 
September 1, 1998].
    \3\ Pipeline Safety: Natural Gas pipeline Company of America; 
Approved for Pipeline Risk Management Demonstration Program 964 
Federal Register 1067, January 7, 1999].
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    2. OPS Evaluation of NGPL's Proposed Alternatives
    A Project Review Team (PRT), consisting of representatives from OPS 
Headquarters, Central Region, and Southwestern Region; representatives 
of Illinois and Texas pipeline regulatory agencies; and risk management 
experts evaluated NGPL's proposed Alternatives. The PRT met with NGPL 
to discuss the current risk assessment and risk control processes NGPL 
uses, how these processes were used to identify and define the proposed 
regulatory alternatives, the analysis of the protection achieved by the 
proposed alternatives compared to the protection 49 CFR 192.611 
provides, and proposed performance measures to ensure superior 
performance is being achieved. The evaluation also included an 
environmental assessment, which is described in Appendix A of this 
Notice.
    The major review criterion for this evaluation was whether the risk 
control alternatives NGPL proposed can be expected to produce superior 
safety, environmental protection, and reliability of service compared 
to that achieved from compliance with 49 CFR 192.611.
    Once OPS and NGPL consider comments received on this Notice, OPS 
intends to modify NGPL's risk management demonstration project order to 
allow the alternatives.

3. Statement of Project Goals

    The NGPL 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

[[Page 43296]]

the public and environment by the prevention of pipeline leaks and 
ruptures is the highest priority for OPS and NGPL. OPS and NGPL believe 
that by applying and refining NGPL's Risk Management Program, and by 
implementing the proposed Alternatives, the demonstration project will 
continue to provide superior protection.

4. Risk Control Alternative Locations

    NGPL is focusing its proposed regulatory alternatives to control 
the increased risk from population increases along the pipeline (see 
Section 5) in one location in Illinois and four locations in Texas.
     One pipe segment (4912 feet) located on the Amarillo #3 
line in Will County, Illinois, within Mileposts 978-979 (just upstream 
of Compressor Station 113).
     Two pipe segments (1177 feet and 1116 feet) located on the 
Gulf Coast #1 and #2 Lines in Liberty Country Texas, within Mileposts 
288-289 (between Compressor Stations 302 and 303).
     Two pipe segments (both 4.4 miles) located on the 
Louisiana #1 and #2 Lines in Liberty County, Texas, within Mileposts 
23-28 (between Compressor Stations 302 and 343).

5. Description of Project Modification: Regulatory Alternatives 
Designed to Provide Superior Protection

    NGPL has identified five short pipe segments where it believes 
alternatives to the regulations addressing population increase near a 
pipeline ( 49 CFR 192.611) would result in superior safety, 
environmental protection, and reliability (see Section 4).

5.1  Current Regulatory Requirements

    This section describes the current regulatory requirements in 49 
CFR 192.611 that govern actions taken when population density increases 
along the pipeline.
    OPS categorizes all locations along a gas pipeline according to the 
population near the pipeline (see 49 CFR 192.5). Locations with the 
smallest population (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 of pipeline) are designated as Class 
1. As the population along the 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 
the 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 of the NGPL class location change pipe segments identified in 
Section 4 are changing from Class 2 to Class 3.
    Pipeline safety regulations impose more stringent design and 
operational requirements as the class location increases. When a pipe 
segment changes to a higher class (e.g., from class 2 to class 3), the 
operator must lower operating pressure to provide an additional margin 
of safety, unless a pressure test on the pipe has confirmed that a 
prescribed safety margin exists. If a previous pressure test has not 
confirmed the prescribed safety margin, then the operator must test the 
pipe to confirm the margin. In situations where it is not possible to 
confirm through testing, the operator must replace the pipe with new 
pipe that has the prescribed design factor, unless the operator wants 
to reduce operating pressure.
    Because of the importance of providing reliable natural gas service 
to its customers, NGPL is not considering permanent operating pressure 
reduction as a realistic alternative since this would decrease the 
quantity of gas that the company could deliver. To comply with pipeline 
safety regulations, NGPL would have to replace pipe in these five 
segments. Replacing existing pipe with new pipe that has the prescribed 
design factor eliminates the possibility that defects from the original 
materials and construction, as well as corrosion that may have occurred 
since installation, will result in a failure.

5.2  NGPL's Risk Control Alternatives

    For each class location change area described in Section 4, NGPL 
has performed risk analyses to understand and characterize the existing 
risks to the pipeline and defined specific alternatives to replacing 
pipe for controlling these risks. NGPL identified outside force damage 
and corrosion as the principal risks to the pipeline in the class 
location segments and the surrounding sections and defined the 
following risk control alternatives (also summarized in Table 1):
     Internally inspecting class location change segments using 
geometry and magnetic flux leakage in-line inspection tools. Gas 
pipeline safety regulations do not currently require internal 
inspection. These tools will 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. OPS reviews results of these internal inspections as they are 
completed.
     Internally inspecting an extended length of pipe bordering 
each class change segment to further extend the benefits of the better 
integrity analysis. NGPL has already internally inspected approximately 
310 miles of pipe.
     Repairing indications of corrosion or existing 
construction and outside force damage identified by the internal 
inspection. NGPL is using conservative investigation and repair 
criteria in the class location change sites and in an additional length 
of pipe bordering those sites. The criteria call for investigation and 
repairs of small dents and anomalies that are well below the size at 
which a challenge to pipeline integrity might be expected.
     Performing close-interval surveys on the five class 
location segments and an extended length of pipe bordering each class 
location segment, as an added measure to detect possible pipeline 
corrosion. NGPL has surveyed approximately 257 miles of pipe.
     Pressure testing the five class location change segments, 
an extended length of pipe that encompasses each class location 
segment, and additional segments on the same pipelines. NGPL has 
pressure tested approximately 60 miles of pipe.
     Enhancing damage prevention activities in the class 
location change segments and an additional length of pipe bordering 
each class location segment. Damage caused by excavators near the 
pipeline represents one of the highest risks to the five class location 
change areas. This multi-faceted damage prevention program includes:
     Annual verification of one-call system database 
information to ensure accuracy of pipeline data;
     Increasing contact with local contractors that may be 
working near the pipeline to provide information on safe practices when 
planning and performing work near pipelines;
     Having more frequent face-to-face contact with landowners 
and residents near the pipeline to provide information on safe 
practices and prevent potential damage to the pipeline;
     Expanding distribution of information on pipeline 
awareness and potential hazards to nearby residents;
     Regularly verifying the depth of cover over the pipeline 
to protect it from the risk of excavation damage;

[[Page 43297]]

     Increasing the number of pipeline markers along the 
segment to alert potential excavators of the line's presence; and
     Increasing local patrolling frequency.
     Increasing contacts with local emergency planners and 
emergency responders to ensure preparation for more effective and 
coordinated response to emergencies.
     Conducting public education on the subject of pipeline 
safety; part of this education program will be specifically developed 
for students in schools in the immediate vicinity of the Gulf Coast 
line class location segments.
     Continuing the NGPL current investigation, analysis, and 
mitigation program for Stress Corrosion Cracking (SCC). This company 
program, initiated in response to recent experience on the NGPL system, 
involves integration of data regarding soil, coating, and pipe 
characteristics to identify areas of probable susceptibility to SCC. 
These areas are then investigated further to determine if SCC is 
present; any detected SCC is mitigated.

                    Table 1.--Alternative Activities
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                                  49 CFR 192.611        Alternative
         Project site              requirements          activities
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                      Amarillo #3 Line (106 miles)
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1. Will County, IL, Class 2 to  Pipe replacement.  Run both metal loss &
 3, 4912 feet, Milepost 978-                        geometry in-line
 979, Highest risk: 3rd party                       inspection tools.
 damage, corrosion.
                                                   Repair anomalies
                                                    within 106 mile
                                                    segment (at
                                                    exemption site, use
                                                    more stringent
                                                    investigation and
                                                    repair criteria than
                                                    standard company
                                                    practice).
                                                   Close-Interval Survey
                                                    53 miles.
                                                   Hydrostatic test 4912
                                                    feet.
                                                   Enhanced damage
                                                    prevention.
                                                   Work w/local
                                                    Emergency Mngmt.
                                                    Depts.
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                      Gulf Coast #1 Line (32 Miles)
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2. Liberty County, TX, Class 2  Pipe replacement.  Run both metal loss &
 to 3, 1177 feet, Milepost 288-                     geometry in-line
 289, Highest risk: 3rd party                       inspection tools.
 damage, corrosion.
                                                   Repair anomalies
                                                    within 32 mile
                                                    segment (at
                                                    exemption site, use
                                                    more stringent
                                                    investigation and
                                                    repair criteria than
                                                    standard industry
                                                    practice).
                                                   Close Interval Survey
                                                    32 miles.
                                                   Hydrostatic test 15
                                                    miles.
                                                   Enhanced damage
                                                    prevention.
                                                   Work w/local
                                                    Emergency Mngmt.
                                                    Depts.
                                                   Public Education
                                                    Program for Schools.
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                      Gulf Coast #2 Line (82 miles)
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    . Liberty County, TX,       Pipe replacement.  Run both wall loss &
     Class 2 to 3; 1116 feet,                       geometry in-line
     Milepost 288-289; Highest                      inspection tools.
     risk: 3rd party damage,
     corrosion
                                                   Repair anomalies
                                                    within 82 mile
                                                    segment (at
                                                    exemption site, use
                                                    more stringent
                                                    investigation and
                                                    repair criteria than
                                                    standard industry
                                                    practice).
                                                   Close Interval Survey
                                                    82 miles.
                                                   Hydrostatic test 15
                                                    miles.
                                                   Enhanced damage
                                                    prevention.
                                                   Work w/local
                                                    Emergency Mngmt.
                                                    Depts.
                                                   Public Education
                                                    Program for Schools.
------------------------------------------------------------------------
                      Louisiana #1 Line (45 miles)
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4. Liberty County, TX, Class 2  Pipe replacement.  Run both wall loss &
 to 3, 4.4 miles, Milepost 23-                      geometry in-line
 28, Highest risk: corrosion,                       inspection tools.
 3rd party damage.
                                                   Repair anomalies
                                                    within 45 mile
                                                    segment (at
                                                    exemption site, use
                                                    more stringent
                                                    investigation and
                                                    repair criteria than
                                                    standard company
                                                    practice).
                                                   Close Interval Survey
                                                    45 miles.
                                                   Hydrostatic test 14.4
                                                    miles.
                                                   Enhanced damage
                                                    prevention.
                                                   Work w/local
                                                    Emergency Mngmt.
                                                    Depts.
------------------------------------------------------------------------

[[Page 43298]]

 
                      Louisiana #2 Line (45 miles)
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6. Liberty County, TX, Class 2  Pipe replacement.  Run both wall loss &
 to 3, 4.4 miles, Milepost 23-                      geometry in-line
 28, Highest risk: corrosion,                       inspection tools.
 3rd party damage.
                                                   Repair anomalies
                                                    within 45 mile
                                                    segment (at
                                                    exemption site, use
                                                    more stringent
                                                    investigation and
                                                    repair criteria than
                                                    standard company
                                                    practice).
                                                   Close Interval Survey
                                                    45 miles.
                                                   Hydrostatic test 14.4
                                                    miles.
                                                   Enhanced damage
                                                    prevention.
                                                   Work w/local
                                                    Emergency Mngmt.
                                                    Depts.
------------------------------------------------------------------------

    As part of the company's risk evaluation, NGPL has compared the 
risk reduction produced by these alternatives to that achieved by the 
current regulations. OPS has reviewed this evaluation in detail and 
concluded that the alternative risk control activities can be expected 
to reduce safety and environmental risk below that which would be 
achieved by compliance with 49 CFR 192.611. Furthermore, because of the 
resources saved by not having to replace pipe in these five locations, 
NGPL is able to conduct internal inspections and pressure tests on 
additional portions of its system.
    Based on the PRT's evaluation of the these alternatives, OPS 
intends to exempt NGPL from the pressure confirmation requirements of 
49 CFR 192.611. In lieu of compliance with this requirement, NGPL will 
implement the Alternatives and, along with OPS, monitor their 
effectiveness.

6. Regulatory Perspective

Why Is OPS Considering This Project Modification?

    OPS believes that the proposed risk control alternatives will 
improve protection for the environment and the communities in the 
vicinity of NGPL's pipelines. OPS believes NGPL's risk-based 
justification of the alternatives to the class change regulations is 
technically sound. OPS also believes that this modification to the NGPL 
demonstration project will help OPS further the overall goals of the 
Risk Management Demonstration Program. In particular, as a result of 
this modification there will be an increased sharing of information 
between the company and government about potential pipeline risks and 
activities to address those risks, as OPS reviews the results of the 
inspection and testing activities that are part of the Alternatives. 
This sharing will increase OPS's knowledge and awareness about 
potential pipeline threats, and thereby support a more effective 
regulatory role in improving safety and environmental protection.

How Will OPS Oversee the Alternatives?

    After approving the proposed modifications, the PRT will monitor 
the implementation and results of the Alternatives, as part of its 
continued monitoring of the Demonstration Project. The PRT is 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 would not normally 
provide oversight on interstate transmission projects.
    OPS retains its authority to enforce NGPL's compliance with the 
pipeline safety regulations. OPS plans to exempt compliance from 49 CFR 
192.611 at those five segments where NGPL has demonstrated that its 
proposed risk alternatives should provide superior protection. Should 
the demonstration project performance measures or other information 
subsequently indicate that superior protection has not been achieved or 
is unlikely to continue to be achieved, then OPS can require NGPL to 
again comply with 49 CFR 192.611.

Information Provided to the Public

    (1) 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.
    (2) Pipeline Safety: Intent to Approve and Environmental Assessment 
for the Natural Gas Pipeline Company of America Pipeline Risk 
Management Demonstration Project, [63 FR 46497, September 1, 1998].
    (3) Pipeline Safety: Natural Gas Pipeline Company of America; 
Approved for Pipeline Risk Management Demonstration Program (includes 
Finding of No Significant Impact) [64 FR 1067, January 7, 1999].
    (4) ``Risk Management Demonstration Project Order,'' Reference No. 
RMD 98-4, December 31, 1998.
    (5) Pipeline Safety: Remaining Candidates for the Pipeline Risk 
Management Demonstration Program, [62 FR 53052, October 10, 1997].
    This Notice is OPS's final request for public comment before OPS 
intends to approve the described modification of NGPL's Risk Management 
Demonstration Project.

    Issued in Washington, DC, on August 10, 2001.
Stacey L. Gerard,
Associate Administrator for Pipeline Safety.
[FR Doc. 01-20721 Filed 8-16-01; 8:45 am]
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