[Federal Register Volume 68, Number 84 (Thursday, May 1, 2003)]
[Proposed Rules]
[Pages 23272-23275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10689]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 193

[Docket No. RSPA-03-14456; Notice 1]
RIN 2137-AD80


Pipeline Safety: Liquefied Natural Gas Facilities: Clarifying and 
Updating Safety Standards

AGENCY: Research and Special Programs Administration (RSPA), DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This notice proposes to clarify application of RSPA's safety 
standards for operation, maintenance, and fire protection of liquefied 
natural gas (LNG) facilities to certain existing facilties. In 
addition, this notice proposes to revise standards that contain 
incorrect cross-references, clarify training standards, and require 
annual reviews of plans and procedures. This notice also proposes to 
update present references to the National Fire Protection Association 
(NFPA) 59A standard to the 2001 edition of that standard. These actions 
are needed to remove ambiguities, assure that plans and procedures are 
up-to-date, and modernize present references to NFPA 59A. The changes 
would improve the clarity and effectiveness of RSPA's LNG facility 
safety standards.

DATES: Persons interested in submitting written comments on the rules 
proposed in this notice must do so by June 30, 2003. Late filed 
comments will be considered so far as practicable.

ADDRESSES: You may submit written comments by mailing or delivering an 
original and two copies to the Dockets Facility, U.S. Department of 
Transportation, Room PL-401, 400 Seventh Street, SW., Washington, DC 
20590-0001. The Dockets Facility is open from 10 a.m. to 5 p.m., Monday 
through Friday, except on Federal holidays when the facility is closed. 
Alternatively, you may submit written comments to the docket 
electronically at the following Web address: http://dms.dot.gov. All 
written comments should identify the docket and notice numbers stated 
in the heading of this notice. Anyone who wants confirmation of mailed 
comments must include a self-addressed stamped postcard. To file 
written comments electronically, after logging on to http://dms.dot.gov, click on ``Comment/Submissions.'' You can also read 
comments and other material in the docket at http://dms.dot.gov. 
General information about our pipeline safety program is available at 
http://ops.dot.gov.
    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (volume 65, number 70; pages 19477-78), or you may visit 
http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: L. M. Furrow by phone at 202-366-4559, 
by fax at 202-366-4566, by mail at U.S. Department of Transportation, 
400 Seventh Street, SW., Washington, DC, 20590, or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION:

Applicability

    In the Federal Register of March 1, 2000 (65 FR 10950), RSPA 
published a final rule amending the safety standards in 49 CFR part 193 
that govern liquefied natural gas facilities used in gas pipeline 
transportation. The final rule, which took effect March 31, 2000, 
replaced many existing standards on siting, design, construction, 
equipment,

[[Page 23273]]

and fire protection with references to a consensus standard, NFPA 59A, 
``Standard for the Production, Storage, and Handling of Liquefied 
Natural Gas (LNG)'' (1996 edition). However, as explained below, an 
amendment to Sec.  193.2005, Applicability, inadvertently made the 
application of part 193 to existing LNG facilities unclear.
    Before the final rule took effect, former Sec.  193.2005(a)(1) \1\ 
exempted LNG facilities existing or under construction from any new or 
amended standards on siting, design, installation, or construction of 
LNG facilities. This exemption included standards in subpart B--Siting, 
subpart C--Design, subpart D--Construction, and subpart E--Equipment. 
In contrast, part 193 did not exempt LNG facilities existing or under 
construction from new or amended standards on operation or maintenance, 
including standards in subpart F--Operations, subpart G--Maintenance, 
subpart H--Personnel Qualifications and Training, subpart I--Fire 
Protection, and subpart J--Security. Applying these standards 
retroactively to existing facilities is consistent with the 
Congressional authorization to regulate the safe operation and 
maintenance of LNG facilities (49 U.S.C. 60103(d)).
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    \1\ Sec.  193.2005 Applicability. (a) New or amended standards 
in this part governing the siting, design, installation, or 
construction of an LNG facility and related personnel qualifications 
and training do not apply to: (1) LNG facilities under construction 
before the date such standards are published; or * * * (49 CFR 
193.2005 (1999)).
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    However, as revised by the final rule, present Sec.  193.2005(a) 
\2\ can be interpreted to exclude LNG facilities existing on March 31, 
2000, from changes the final rule made to standards on operations, 
maintenance, and fire protection of LNG facilities. These changes 
affected Sec. Sec.  193.2521, 193.2619(c), 193.2639(a) and subpart I--
Fire Protection. Yet no such exclusion was intended. Although the 
preamble discussion of Sec.  193.2005 indicated that ``new 
requirements'' would not apply to existing LNG facilities,\3\ the new 
requirements we intended were requirements on siting, design, 
installation, and construction of LNG facilities. Given our long-
standing regulatory policy that part 193 operation, maintenance, and 
fire protection standards apply to all regulated LNG facilities, if we 
had intended to exclude certain facilities from these standards, we 
would have explained this change in policy. Neither the final rule nor 
the underlying notice of proposed rulemaking (63 FR 70735; Dec. 22, 
1998) contains such an explanation.
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    \2\ Sec.  193.2005 Applicability. (a) Safety requirements 
mandating compliance with standard ANSI/NFPA 59A and other changes 
in this part governing siting, design, construction, equipment, fire 
protection, operation and maintenance apply to LNG facilities placed 
in service after March 31, 2000, unless otherwise noted. (49 CFR 
2005 (2001)).
    \3\ The final rule states: ``This section 193.2005 has been 
restructured to clarify that new requirements apply to new and 
significantly altered LNG facilities after the effective date of 
this rule unless otherwise noted.'' (65 FR 109502).
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    Therefore, we are proposing to revise present Sec.  193.2005(a) as 
set forth below. The revision would clarify that LNG facilities 
existing or under construction are exempt only from new or amended 
standards on siting, design, installation, and construction of LNG 
facilities. We also intend this revision to clarify that Sec. Sec.  
193.2521, 193.2619(c), 193.2639(a) and subpart I--Fire Protection apply 
to LNG facilities existing or under construction on March 31, 2000.

Cross-references

    Part 193 contains several sections with cross-references to 
sections in subpart I that were removed by the final rule published 
March 1, 2000. To correct this problem, we are proposing the following 
amendments:
    Section 193.2503(h) requires that operating procedures provide for 
compliance with Sec.  193.2805(b). However, Sec.  193.2805(b) no longer 
exists. It concerned fire prevention procedures that are no longer 
required by part 193. So Sec.  193.2503(h) would be removed.
    Section 193.2507 requires that operators monitor buildings 
determined under Sec.  193.2805(a)(2) in which a hazard to persons or 
property could exist to detect fire or any malfunction or flammable 
fluid that could cause a hazardous condition. Section 193.2805(a)(2), 
which was removed by the final rule, required operators to determine 
areas, as described in section 500-5 of NFPA 70 (1996 edition), where 
the potential exists for presence of flammable fluids. Although the 
cross-reference to Sec.  193.2805(a)(2) would be removed from Sec.  
193.2507, operators would still have to monitor buildings in which a 
hazard to persons or property could exist. Operators could use the 
previously referenced NFPA 70 as a compliance guide.
    Section 193.2509(b) requires operators to follow procedures in 
handling fire emergencies identified under Sec.  193.2817(a). Section 
193.2817(a), which no longer exists, required that operators determine 
the types and sizes of fires that could occur in or near an LNG plant 
and affect the safety of plant components. Although the reference to 
Sec.  193.2817(a) would be removed, operators would still have to 
follow procedures in handling fire emergencies.
    Section 193.2605(b)(2) requires that maintenance procedures 
describe actions needed to comply with Sec.  193.2805. Section 193.2805 
no longer exists. It concerned fire prevention plans that are not now 
required by part 193. So the cross-reference to Sec.  193.2805 would be 
removed.
    Section 193.2705(b) requires operators to determine periodically if 
inspectors are satisfactorily performing their duties assigned under 
Sec.  193.2307. This section, which required certain inspections of 
construction, installation, and testing activities, was removed by the 
final rule as no longer necessary in view of inspection duties under 
NFPA 59A. Although the cross-reference to Sec.  193.2307 would be 
removed, operators would still have to determine if construction, 
installation, and testing activities are being satisfactorily 
inspected.
    Section 193.2717(a) requires operators to train their operating and 
maintenance personnel in various fire protection standards in subpart I 
that no longer exist:
    [sbull] Paragraph (a)(1) requires training in fire prevention 
procedures under Sec.  193.2805(b). Since part 193 no longer requires 
these procedures, paragraph (a)(1) would be removed.
    [sbull] In paragraph (a)(2), the cross-reference to Sec.  
193.2805(a) would be removed, but operators would still have to train 
personnel to know the potential causes and areas of fire.
    [sbull] In paragraph (a)(3), the cross-reference to Sec.  
193.2817(a) would be removed, but operators would still have to train 
personnel to know the types, sizes, and predictable consequences of 
fire.
    [sbull] In paragraph (a)(4), the cross-reference to ``equipment 
provided under Sec.  193.2817'' would be replaced by ``equipment 
provided under Sec.  193.2801.''

Plans and Procedures

    Part 193 requires operators to prepare and follow written plans and 
procedures for various LNG plant activities. For example, plans are 
required for personnel health (Sec.  193.2711) and training (Sec. Sec.  
193.2713-193.2719), and procedures are required for operations (Sec.  
193.2503), emergencies (Sec.  193.2509(b)), fluid transfers (Sec.  
193.2513(a)), maintenance (Sec.  193.2605(b)), and security (Sec.  
193.2903).
    Under Sec.  193.2017 operators must make their plans and procedures 
available for review by federal and state inspectors. Reviews by RSPA 
personnel

[[Page 23274]]

have disclosed that while operators generally keep their plans and 
procedures up-to-date, not all plans and procedures are kept up-to-
date. And outmoded plans and procedures can be a source of safety 
problems.
    Our standards in 49 CFR part 192, which apply to gas pipelines 
serving LNG plants, address this potential safety problem by requiring 
operators to review and update their pipeline operating and maintenance 
procedures at intervals not exceeding 15 months, but at least once each 
calendar year (Sec.  192.605(a)). We think a similar requirement should 
apply to plans and procedures for LNG plants. Therefore, we are 
proposing to establish a new Sec.  193.2017(c) to require annual 
reviews and updates of plans and procedures required by part 193.

Fire Drills

    Section 193.2717 requires operators of LNG plants to train their 
operations and maintenance personnel in fire protection. The training 
must include ``plant fire drills.'' To meet this fire drill 
requirement, some operators use only tabletop exercises. We believe the 
exclusive use of such exercises is inconsistent with the ordinary 
meaning of ``fire drill,'' because tabletop exercises do not involve 
actual evacuation of buildings and performance of fire control duties. 
Therefore, to insure that proper fire drills are conducted, we are 
proposing to amend Sec.  193.2717 to require that fire drills include 
evacuation of buildings and personnel performing fire control duties. 
See proposed Sec.  193.2717(c) below.

NFPA 59A

    At present, many sections in part 193 concerning siting, design, 
construction, equipment, fire protection, and operating and maintenance 
records incorporate by reference the 1996 edition of NFPA 59A, 
``Standard for the Production, Storage, and Handling of Liquefied 
Natural Gas (LNG).'' However, the 1996 edition of the standard is now 
out-of-date and is no longer available in book form from NFPA. The 
latest edition, the 2001 edition, is available from NFPA either in book 
or electronic form by entering ``59A'' in the search block at http://www.nfpa.org/catalog.
    There are several significant differences between the 1996 and 2001 
editions. The 2001 edition:
    1. Bases design on the concept of a maximum credible earthquake, in 
line with building codes used throughout country.
    2. Allows use of the FEM3A model to calculate vapor dispersion 
distances. (Part 193 already allows use of this model).
    3. Increases the frequency of inspecting and testing LNG tank 
relief valves.
    4. Enhances chapter 10 requirements for plants with less than 
300,000 gallons of storage. (We are not now proposing to incorporate 
chapter 10 by reference in part 193.)
    5. Establishes operations and maintenance requirements. (We are not 
now proposing to incorporate these new requirements by reference in 
part 193.)
    6. Adds appendices containing part 193 training and security 
standards.
    We have considered the differences between the 1996 and 2001 
editions of NFPA 59A and believe it is in the interest of LNG facility 
safety to amend Part 193 to reference the 2001 edition instead of the 
1996 edition. This update would be accomplished by changing Appendix A 
to part 193 as set forth below. In addition, the specific reference to 
the 1996 edition in Sec.  193.2019(a) would be replaced by a general 
reference to NFPA 59A. As indicated by Sec.  193.2013(a), any general 
reference to NFPA 59A refers to the latest edition listed in Appendix 
A.

Regulatory Analyses and Notices

Executive Order 12866 and DOT Policies and Procedures

    RSPA does not consider this proposed rulemaking to be a significant 
regulatory action under section 3(f) of Executive Order 12866 (58 FR 
51735; Oct. 4, 1993). Therefore, the Office of Management and Budget 
(OMB) has not received a copy of this rulemaking to review. RSPA also 
does not consider this proposed rulemaking to be significant under DOT 
regulatory policies and procedures (44 FR 11034: February 26, 1979).
    We prepared a Draft Regulatory Evaluation of the proposed rules and 
a copy is in the docket. The evaluation concludes there should be only 
minimal additional cost, if any, for operators to comply with the 
proposed rules. If you disagree with this conclusion, please provide 
information to the public docket described above.

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), RSPA 
must consider whether a rulemaking would have a significant economic 
impact on a substantial number of small entities. The proposed rules 
are consistent with customary practices in the gas pipeline industry. 
Therefore, based on the facts available about the anticipated impacts 
of this proposed rulemaking, I certify that this proposed rulemaking 
would not have a significant impact on a substantial number of small 
entities. If you have any information that this conclusion about the 
impact on small entities is not correct, please provide that 
information to the public docket described above.

Executive Order 13175

    The proposed rules have been analyzed in accordance with the 
principles and criteria contained in Executive Order 13084, 
``Consultation and Coordination with Indian Tribal Governments.'' 
Because the proposed rules would not significantly or uniquely affect 
the communities of the Indian tribal governments and would not impose 
substantial direct compliance costs, the funding and consultation 
requirements of Executive Order 13084 do not apply.

Paperwork Reduction Act

    Title: Recordkeeping for LNG Facilities.
    Summary: Section 193.2017(c) proposes to add a minor information 
collection requirement to already existing information collection 
requirements. Operators would be required to review and update the 
plans and procedures required by part 193 at intervals not exceeding 15 
months, but at least once each calendar year. However, we believe most 
operators routinely carry out reviews and updates during the course of 
executing their plans and procedures. So we believe the burden of 
complying with the proposed review-and-update requirement would be 
minimal. Because the additional paperwork burden of this proposed rule 
is likely to be minimal, we believe that submitting an analysis of the 
burdens to OMB under the Paperwork Reduction Act is unnecessary. If you 
disagree with this conclusion, please submit your comments to the 
public docket.
    Use: Records are kept to facilitate personnel training and other 
LNG plant activities.
    Respondents (including the number of): There are 150 gas pipeline 
operators.
    OMB Control Number: 2137-0048.
    Average burden estimate per operator: 126.7 hours per year.
    Annual Burden Estimate: 19,000 hours per year.
    Frequency: Annual.

Unfunded Mandates Reform Act of 1995

    This proposed rulemaking would not impose unfunded mandates under 
the Unfunded Mandates Reform Act of 1995. It would not result in costs 
of $100 million or more to either State,

[[Page 23275]]

local, or tribal governments, in the aggregate, or to the private 
sector, and would be the least burdensome alternative that achieves the 
objective of the rule.

National Environmental Policy Act

    We have analyzed the proposed rules for purposes of the National 
Environmental Policy Act (42 U.S.C. 4321 et seq.). Because the proposed 
rules parallel present requirements or practices, we have preliminarily 
determined that the proposed rules would not significantly affect the 
quality of the human environment. An environmental assessment document 
is available for review in the docket. A final determination on 
environmental impact will be made after the end of the comment period. 
If you disagree with our preliminary conclusion, please submit your 
comments to the docket as described above.

Executive Order 13132

    The proposed rules have been analyzed in accordance with the 
principles and criteria contained in Executive Order 13132 
(``Federalism''). The proposed rules do not propose any regulation that 
(1) has substantial direct effects on the States, the relationship 
between the national government and the States, or the distribution of 
power and responsibilities among the various levels of government; (2) 
imposes substantial direct compliance costs on State and local 
governments; or (3) preempts State law. Therefore, the consultation and 
funding requirements of Executive Order 13132 do not apply.

List of Subjects in 49 CFR Part 193

    Pipeline safety, Fire prevention, Security measures, Reporting and 
recordkeeping requirements.

    Accordingly, we are proposing the following amendments to 49 CFR 
part 193:
    1. The authority citation for part 193 continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60103, 60111, 60118 and 49 CFR 
1.53.

    2. Revise Sec.  193.2005(a) to read as follows:


Sec.  193.2005  Applicability.

    (a) Standards in this part governing siting, design, installation, 
or construction of LNG facilities do not apply to LNG facilities 
existing or under construction before the date such standards take 
effect under this part.
* * * * *
    3. Add Sec.  193.2017(c) to read as follows:


Sec.  193.2017  Plans and procedures.

* * * * *
    (c) Each operator must review and update the plans and procedures 
required by this part at intervals not exceeding 15 months, but at 
least once each calendar year.
    4. Remove the parenthetical expression ``(1996 edition)'' from 
Sec.  193.2019(a).
    5. Amend Sec.  193.2503 as follows:
    a. In paragraph (e), remove the semicolon and add a period in its 
place;
    b. In paragraph (g), remove the semicolon and the word ``and'' and 
add a period in the place of the removed semicolon; and
    c. Remove paragraph (h).
    6. Revise the first sentence of Sec.  193.2507 to read as follow:


Sec.  193.2507  Monitoring operations.

    Each component in operation or building in which a hazard to 
persons or property could exist must be monitored to detect fire or any 
malfunction or flammable fluid that could cause a hazardous condition. 
* * *
    7. Revise the first sentence of Sec.  193.2509(b) introductory text 
to read as follows:


Sec.  193.2509  Emergency procedures.

* * * * *
    (b) To adequately handle each type of emergency identified under 
paragraph (a) of this section and each fire emergency, each operator 
shall follow one or more manuals of written procedures. * * *
* * * * *
    8. Revise Sec.  193.2605(b)(2) to read as follows:


Sec.  193.2605  Maintenance procedures.

* * * * *
    (b) * * *
    (2) A description of other actions necessary to maintain the LNG 
plant in accordance with the requirements of this subpart.
* * * * *
    9. Revise Sec.  193.2705(b) to read as follows:


Sec.  193.2705  Construction, installation, inspection, and testing.

* * * * *
    (b) Each operator must periodically determine whether inspectors 
performing construction, installation, and testing duties required by 
this part are satisfactorily performing their assigned functions.
    10. In Sec.  193.2717, revise paragraph (a) and add paragraph (c) 
to read as follows:


Sec.  193.2717  Training: fire protection.

    (a) All personnel involved in maintenance and operations of an LNG 
plant, including their immediate supervisors, must be trained in 
accordance with a written plan of initial instruction, including plant 
fire drills, to:
    (1) Know the potential causes and areas of fire;
    (2) Know the types, sizes, and predictable consequences of fire; 
and
    (3) Know and be able to perform their assigned fire control duties 
according to the procedures established under Sec.  193.2509 and by 
proper use of equipment provided under Sec.  193.2801.
* * * * *
    (c) Plant fire drills must include--
    (1) Evacuation of buildings; and
    (2) Personnel performing fire control duties.
    11. In section II. E. 1. of Appendix A to Part 193, remove the 
parenthetical expression ``(1996 edition)'' and add the parenthetical 
expression ``(2001 edition)'' in its place.

    Issued in Washington, DC on April 25, 2003.
Stacey Gerard,
Associate Administrator for Pipeline Safety.
[FR Doc. 03-10689 Filed 4-30-03; 8:45 am]
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