[Federal Register Volume 69, Number 10 (Thursday, January 15, 2004)]
[Notices]
[Pages 2386-2388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-923]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

[Docket No. RSPA-03-15122; Notice 2]


Pipeline Safety: Petition for Waiver; Duke Energy Gas 
Transmission Company

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

ACTION: Notice of intent to consider waiver.

-----------------------------------------------------------------------

SUMMARY: Duke Energy Gas Transmission Company (DEGT) petitioned the 
Research and Special Programs Administration's (RSPA) Office of 
Pipeline Safety (OPS) for a waiver of compliance with provisions of 49 
CFR 192.611, which requires pipeline operators to confirm or revise the 
maximum allowable operating pressure (MAOP) of their pipelines after a 
class location change. DEGT proposes an alternative set of risk control 
activities in lieu of a reduction in pressure or pressure testing of 
selected pipeline segments in Pennsylvania that have changed from Class 
1 to Class 2.

DATES: Persons interested in submitting written comments on the waiver 
proposed in this notice must do so by February 17, 2004. 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: James Reynolds by phone at (202) 366-
2786, by fax at (202) 366-4566, by mail at U.S. DOT, Research and 
Special Programs Administration, Office of Pipeline Safety, 400 Seventh 
Street, SW., Washington, DC 20590, or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION:

1. Background

    DEGT petitioned RSPA/OPS for a waiver from compliance with 49 CFR 
192.611 for selected gas transmission pipeline segments in 
Pennsylvania. DEGT is asking for a waiver from the requirement to 
revise the MAOP or upgrade pipeline segments after a class location 
change. DEGT asserts that these alternative risk control activities 
will provide an equal or higher level of safety than that currently 
provided by the pipeline safety regulations.
    The Federal pipeline safety regulations at Sec.  192.609 require a 
gas pipeline operator to complete a class location change study 
whenever it believes an increase in population density may have caused 
a change in class location as defined in Sec.  192.5. If a new class 
location is confirmed, the operator is required to either reduce 
pressure or replace the pipe to lower pipe wall stress in compliance 
with Sec.  192.611.
    Section 192.5(a)(1) defines a ``class location unit'' as an onshore 
area extending 220 yards (200 meters) on either side of the centerline 
of any continuous one-mile length of pipeline. The Class Location for 
any class location unit is determined according to the following 
criteria in Sec.  192.5(b):
    Class 1--10 or fewer buildings intended for human occupancy;
    Class 2--more than 10 but less than 46 buildings intended for human 
occupancy;
    Class 3--46 or more buildings intended for human occupancy, or 
areas where a pipeline lies within 100 yards (91 meters) of either a 
building or a 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--buildings with four or more stories above ground are 
prevalent (e.g., large office buildings).
    The pipeline safety regulations impose more stringent design and 
operation requirements as the class location increases. When a class 
location changes to a higher class (e.g., from Class 1 to Class 2) and 
the hoop stress corresponding to the established MAOP of the segment is 
not commensurate with the present class location, the MAOP must be 
confirmed by pressure test or revised using one of the options 
specified in Sec.  192.611(a). An operator may avoid reducing the 
pressure, in some cases, if a previous pressure test is adequate to 
support operation at the existing pressure in the new class location--
this is providing that the corresponding hoop stress does not exceed 72 
percent Specified Maximum Yield Strength (SMYS) of the pipe in Class 2 
locations, 60 percent SMYS in Class 3 locations, or 50 percent SMYS in 
Class 4 locations. Alternatively, the operator may need to reduce the 
pressure or replace the pipe with new pipe.

2. DEGT's Proposed Waiver

    DEGT's request for a waiver of the requirements of Sec.  192.611 is 
specific to four pipeline segments on Line 12 and Line 19, which are 
part of its Texas Eastern Pipeline System in the state of Pennsylvania. 
These segments are located in the towns of Entriken, Perulack, 
Bernville, and Bechtelsville. The pipelines are 24-inch and 30-inch in 
diameter and the class locations have changed from Class 1 to Class 2. 
If this waiver is granted, DEGT intends to apply the alternative set of 
risk reduction strategies to any future sites changing from Class 1 to 
Class 2 on Lines 12 and Lines 19 of these four compressor station 
discharges, provided the pipelines satisfy the technical conditions 
presented in this petition for waiver.
    When these pipelines were built between 1954 through 1963, they 
were hydrotested to at least 100% of the pipe's SMYS with the exception 
of 10 feet of pipe on the Bechtelsville

[[Page 2387]]

discharge line, which was tested to 90% SMYS.
    DEGT has internally inspected each of these pipelines. DEGT first 
inspected the pipelines in 1986 using Tuboscope's conventional magnetic 
flux leakage (MFL) tool. Between 1996 and 2002, DEGT performed a second 
inspection of these lines using Tuboscope's conventional MFL tool and 
Tuboscope's high resolution MFL tool.
    During the same years, DEGT also inspected and evaluated the 
condition of the coal tar enamel pipeline coatings and evaluated the 
cathodic protection current demands on each of the pipelines. DEGT 
reported that the coatings were in good condition and that the cathodic 
protection systems were not experiencing excessive current demands.
    All of the proposed DEGT waiver segments have changed from Class 1 
to Class 2 due to the construction of additional buildings intended for 
human occupancy. DEGT has stated that to provide reliable natural gas 
service to its customers, it cannot operate the proposed waiver 
segments at reduced pressure. Consequently, to comply with the pipeline 
safety regulation, DEGT would be required to replace the pipe in the 
waiver segments in compliance with Sec.  192.611. By replacing the 
existing pipe with new pipe, DEGT will eliminate the possibility that 
defects or corrosion in the original material was a contributing factor 
to the cause of failure of their pipeline.

3. DEGT Proposed Alternative

    In lieu of compliance with Sec.  192.611, DEGT proposes to conduct 
the following activities to ensure the integrity of the pipeline 
segments in this proposed waiver. DEGT has proposed the following 
criteria for inclusion under this waiver of the current class location 
sites and any future sites changing from Class 1 to Class 2 on the four 
compressor station discharges:
    1. All site(s) covered by this waiver have been in-line inspected 
at least twice between 1986 and 2002 using a MFL tool capable of 
detecting corrosion anomalies in the pipeline section;
    2. All actionable anomalies within the site(s) have either been 
remediated or are scheduled to be investigated, and subsequently 
remediated, if necessary, as defined in ASME B31.8S and DEGT Pipeline 
Repair procedures. A schedule of remedial measures to be performed on 
future waiver sites will be submitted to OPS headquarters and OPS 
regional offices;
    3. For future sites covered by this waiver, DEGT will use tools and 
techniques developed through the activities described in the waiver 
request for the identification, classification and possible remediation 
of dents;
    4. The site(s) must pass a hydrostatic test to a pressure of at 
least 125% of the MAOP of the pipeline. DEGT will make available to 
RSPA/OPS a report of all hydrostatic test failures experienced at this 
test pressure;
    5. Subsequent in-line inspection for the site(s) is scheduled in 
accordance with re-inspection criteria (developed under calendar year 
2004 5 below);
    6. The site(s) must be in compliance with ASME B31.8S criteria for 
Stress Corrosion Cracking (SCC) site identification and site 
investigation/testing (including any additional criteria developed in 
conjunction with SCC activities under calendar year 2004 7 
below).
    DEGT has already satisfied the above criteria for the current 
pipeline segments proposed in this waiver request. DEGT commits to 
provide the OPS' Eastern Region with sufficient notice to enable RSPA/
OPS staff to attend and participate in all risk assessment activities. 
DEGT has proposed the following schedule of near-term and long-term 
activities to help maintain pipeline integrity on the proposed waiver 
segments.
    In 2003--
    1. Begin a close interval survey on the pipeline at Perulack to 
support development of confirmatory direct assessment protocols 
(complete as weather allows by Spring 2004);
    2. Begin a direct current voltage gradient (DCVG) survey on one 
line at Perulack (same line as 1 above ) to support external 
corrosion direct assessment (ECDA) validations (complete as weather 
allows by Spring 2004);
    In 2004--
    3. Conduct a high resolution MFL tool run for Bechtelsville Line 
12;
    4. Conduct high resolution geometry tool runs on Entriken Line 19, 
Perulack Line 19 and Bechtelsville Line 12;
    5. Develop criteria and a decision tree for determination of in-
line inspection (ILI) re-inspection interval in accordance with gas 
integrity management program procedures;
    6. Develop calibration and validation methodology and decision tree 
for ILI that incorporates API 1163 (currently under development);
    7. Develop an SCC management plan consistent with ASME B31.8S that 
includes hydrostatic test criteria, site selection criteria, and SCC 
excavation criteria;
    8. Develop an investigation strategy for topside dents and best 
practice responses to topside dents caused by third party damage;
    9. Provide site and operating support for the Pipeline Research 
Council International, Inc. (PRCI) Compendium of Best Practices and 
Emerging Technologies for the Prevention and Detection of Outside 
Damage to Pipelines with P-PIC that will develop a ``User Guide'' for 
outside force damage technologies;
    10. Develop a Web site for RSPA/OPS access on waiver-related sites 
and data. Provide public access to website as needed to support 
application of API RP 1162;
    11. Deploy acoustic monitoring technology in conjunction with GTI/
Battelle research project at a site to be determined with Battelle for 
a data gathering test period of one year;
    In 2005--
    12. Overlay the high resolution MFL run data with the high 
resolution geometry tool data on the Entriken Line 19, Perulack Line 
19, and Bechtelsville Line 12 pipeline sections. Overlay available 
hydrostatic test data from Bechtelsville Line 12 and Line 19 with 
identified dents. Overlays will be used in an effort to refine dent 
remediation criteria;
    13. Develop criteria for safe in service investigation of dents.

4. RSPA/OPS Consideration of Waiver

    To allow adequate time for full development of the waiver proposal, 
DEGT petitioned RSPA/OPS on February 28, 2003 for a 12-month extension 
to comply with the provisions of Sec.  192.611(d), which requires an 
operator to confirm or revise the MAOP within 18 months after a class 
location change. On June 11, 2003, RSPA/OPS published a notice seeking 
comment on this petition for an extension of time for DEGT to propose 
technical alternatives to compliance with the regulation. RSPA/OPS did 
not receive comments on this notice. DEGT presented its waiver proposal 
to RSPA/OPS staff during several meetings in April, June, July, August, 
and September 2003. On October 7, 2003, DEGT presented its alternative 
technical proposal in support of the proposed waiver of Sec.  192.611.
    As part of granting this waiver request, RSPA/OPS will consider the 
cause(s) and contributing factor(s) leading up to the pipeline failure 
on Duke's 30 -inch, Line 15, which extends from Danville, Kentucky to 
Owingsville, Kentucky in Bath County. Line 15 is an interstate, natural 
gas transmission line. It is part of the Kosciusko system that 
transports natural gas from northeast Mississippi across the 
northeastern

[[Page 2388]]

corner of Alabama into Tennessee. The pipeline continues in a 
northeasterly direction through eastern Kentucky passing through 
Danville and Owingsville, Kentucky into southwest Ohio; the pipeline 
terminates in southeastern Pennsylvania, near Uniontown.
    This notice provides an opportunity for public comment on the DEGT 
waiver proposal. RPSA/OPS is evaluating the DEGT proposal and will 
consider all comments received by the deadline. RSPA/OPS will publish a 
subsequent notice granting or denying DEGT's proposed waiver of Sec.  
192.611. If DEGT's proposal is determined to yield an equal or higher 
level of safety, RSPA/OPS will grant the waiver. If the waiver is not 
granted, DEGT will be required to fully comply with Sec.  192.611 by 
September 2004.

    Authority: 49 App. U.S.C. 60118(c) and 2015; and 49 CFR 1.53

    Issued in Washington, DC on January 9, 2004.
Richard D. Huriaux,
Manager, Regulations, Office of Pipeline Safety.
[FR Doc. 04-923 Filed 1-14-04; 8:45 am]
BILLING CODE 4910-60-P