[Federal Register Volume 69, Number 203 (Thursday, October 21, 2004)]
[Proposed Rules]
[Pages 61771-61774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23551]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Parts 192 and 195

[Docket No. RSPA-04-16855; Notice 1]
RIN 2137-AD97


Pipeline Safety: Standards for Direct Assessment of Gas and 
Hazardous Liquid Pipelines

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes regulations that would require pipeline 
operators to meet certain standards if they use direct assessment to 
evaluate the threat of corrosion on regulated onshore gas, hazardous 
liquid, and carbon dioxide pipelines. The standards, which are already 
in effect for gas transmission lines in high-consequence areas, involve 
processes of data collection, indirect inspection, direct examination, 
and evaluation. Congress has directed DOT to prescribe standards for 
inspection of pipelines by direct assessment. The proposed regulations 
should advance the use of direct assessment as a method of

[[Page 61772]]

managing the impact of corrosion on regulated pipelines.

DATES: Persons interested in submitting written comments on the rules 
proposed in this document must do so by December 6, 2004. Late filed 
comments will be considered so far as practicable.

ADDRESSES: You may submit written comments to the docket by any of the 
following methods:
     Mail: Dockets Facility, U.S. Department of Transportation, 
Room PL-401, 400 Seventh Street, SW., 20590-0001. Anyone wanting 
confirmation of mailed comments must include a self-addressed stamped 
postcard.
     Hand delivery or courier: Room PL-401, 400 Seventh Street, 
SW., Washington, DC. The Dockets Facility is open from 10 a.m. to 5 
p.m., Monday through Friday, except Federal holidays.
     Web site: Go to http://dms.dot.gov, click on ``Comments/
Submissions'' and follow instructions at the site.
    All written comments should identify the docket number and notice 
number stated in the heading of this notice.
    Docket access. For copies of this document or other material in the 
docket, you may contact the Dockets Facility by phone (202-366-9329) or 
visit the facility at the above street address. For Web access to the 
dockets to read and download filed material, go to http://dms.dot.gov/search. Then type in the last four digits of the docket number shown in 
the heading of this document, and click on ``Search.''
    Anyone can search the electronic form of all comments filed in any 
of our dockets by the name of the individual submitting the comment (or 
signing the comment, if submitted for an association, business, labor 
union, etc.). You may review DOT's complete Privacy Act Statement in 
the April 11, 2000 issue of the Federal Register (65 FR 19477) or go to 
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:

Background

    Many operators of gas, hazardous liquid, and carbon dioxide 
pipelines do more to assure the integrity of their systems than RSPA's 
pipeline safety regulations in 49 CFR Parts 192 and 195 require. For 
example, Sec. Sec.  192.465 and 195.573 require operators to use 
electrical tests to identify places where buried pipe may not be 
protected adequately from external corrosion. But, in addition to 
electrical tests, many operators have historically used internal 
inspection devices or hydrostatic testing to find external corrosion. 
They have also used these methods to look for other pipeline defects.
    RSPA has long recognized the safety and environmental advantages of 
these additional inspection and test methods. In recent years, it 
became apparent that they are particularly beneficial when used as part 
of a comprehensive risk-based program to assure system integrity.
    In 2000, RSPA issued regulations requiring hazardous liquid and 
carbon dioxide pipeline operators to conduct integrity management 
programs using internal inspection, pressure testing, or other equally 
effective assessment means (Sec.  195.452).

Congressional Directives

    Congress also saw the need for operators to do more to assure the 
integrity of their pipelines. In 2002, Congress directed DOT to issue 
regulations on managing gas pipeline integrity in high-density 
population areas with a program involving internal inspection, pressure 
testing, and direct assessment.\1\ Congress further directed DOT to 
issue regulations prescribing standards for inspecting pipeline 
facilities by direct assessment.\2\
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    \1\ Pipeline Safety Improvement Act of 2002 (Pub. L. 107-355; 
Dec. 17, 2002), Sec. 14(a).
    \2\ Ibid., Sec. 23.
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    In the pipeline transportation industry, ``direct assessment'' is a 
process of data gathering, inspection, examination, and evaluation used 
to determine if external corrosion, internal corrosion, or stress-
corrosion cracking is adversely affecting the physical integrity of 
ferrous pipelines. The process serves not only to locate and repair 
corrosion defects but also to prevent future corrosion problems.

Standards for Direct Assessment

    In response to Congress' first directive, RSPA published 
regulations in Subpart O of Part 192 that require operators to follow 
detailed programs in managing the integrity of onshore gas transmission 
lines in high-consequence areas (69 FR 69816; Dec. 15, 2003). The 
definition of ``high-consequence area'' in Sec.  192.903 describes 
places where transmission lines pose an increased risk because of their 
size and operating pressure and the nature or density of the nearby 
population.
    The newly published Subpart O regulations include standards for 
using direct assessment to evaluate the threats of external corrosion, 
internal corrosion, and stress-corrosion cracking. The standards are 
stated in Sec. Sec.  192.925, 192.927, and 192.929. The standard on 
external corrosion direct assessment (Sec.  192.925) requires operators 
to integrate data on physical characteristics and operating history, 
conduct indirect aboveground inspections, directly examine pipe 
surfaces, and evaluate the effectiveness of the assessment process. 
Under the standard for direct assessment of internal corrosion (Sec.  
192.927), operators must predict locations where electrolytes may 
accumulate in normally dry-gas pipelines, examine those locations, and 
validate the assessment process. The standard for direct assessment of 
stress-corrosion cracking (Sec.  192.929) involves collecting data 
relevant to stress-corrosion cracking, assessing the risk of pipeline 
segments, and examining and evaluating segments at risk.
    Although these standards only affect gas transmission lines 
included in a Subpart O integrity management program, RSPA believes 
they are suitable for other gas pipelines that fall under Congress' 
second directive. Each standard incorporates by reference relevant 
provisions of the American Society of Mechanical Engineers' consensus 
standard, ASME B31.8S-2001, ``Managing System Integrity of Gas 
Pipelines,'' which applies to any onshore gas pipeline made of ferrous 
material. In addition, Sec.  192.925 incorporates by reference a 
consensus standard published by NACE International, NACE Standard 
RP0502-2002, ``Pipeline External Corrosion Direct Assessment 
Methodology.'' This NACE standard applies broadly to buried onshore 
ferrous pipelines. Requirements in Sec.  192.925 apart from the ASME 
and NACE standards merely assure the use of appropriate decision-making 
criteria.
    In addition, RSPA believes Sec. Sec.  192.925 and 192.929 would 
provide suitable standards for direct assessment of external corrosion 
and stress-corrosion cracking on hazardous liquid pipelines that fall 
under the second congressional directive. Although Sec. Sec.  192.925 
and 192.929 cross-reference provisions of ASME B31.8S-2001, which was 
intended for use on gas pipelines, we think the referenced provisions 
are appropriate for pipelines transporting hazardous liquid.
    We do not believe, however, that the standard in Sec.  192.927 is 
suitable for direct assessment of internal corrosion in hazardous 
liquid pipelines. This standard applies specifically to pipelines that 
transport dry gas.

[[Page 61773]]

Therefore, it does not apply to pipelines that transport liquids. At 
present, there is no consensus standard available for the direct 
assessment of internal corrosion in hazardous liquid pipelines.

Proposed Rules

    Given that RSPA's existing direct assessment standards are suitable 
for pipelines besides gas transmission lines in high-consequence areas, 
RSPA is making the following rulemaking proposals to meet the second 
congressional directive. For onshore ferrous pipelines subject to Part 
192, proposed Sec.  192.490 would require that if operators use direct 
assessment to evaluate the threat of corrosion or to meet any 
requirement of Subpart I--Requirements for Corrosion Control, the 
direct assessment must be carried out according to the applicable 
standards in Sec. Sec.  192.925, 192.927, and 192.929. A similar 
regulation, proposed Sec.  195.588, would be established for hazardous 
liquid pipelines covered by Part 195, except that Sec.  192.927 would 
not apply. Because Congress has directed DOT to ensure the safe 
transportation of carbon dioxide through standards related to hazardous 
liquid pipelines,\3\ proposed Sec.  195.588 also applies to carbon 
dioxide pipelines covered by Part 195.
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    \3\ 49 U.S.C. 60102(i) (2000).
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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 proposed 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).
    RSPA prepared a draft Regulatory Evaluation of the proposed 
rulemaking and a copy is in the docket. The evaluation concludes 
operators would incur only a minimum amount of cost, if any, to comply 
with the proposed rulemaking. 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 rulemaking actions 
would have a significant economic impact on a substantial number of 
small entities. Based on the facts available about the anticipated 
impacts of this proposed rulemaking, I certify that this proposed 
rulemaking will 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. RSPA has analyzed this proposed rulemaking 
according to the principles and criteria contained in Executive Order 
13175, ``Consultation and Coordination with Indian Tribal 
Governments.'' Because the proposed rulemaking would not significantly 
or uniquely affect the communities of the Indian tribal governments nor 
impose substantial direct compliance costs, the funding and 
consultation requirements of Executive Order 13175 do not apply.
    Paperwork Reduction Act. Operators have just recently begun to use 
direct assessment to evaluate the effect of corrosion on buried 
pipelines. Under Parts 192 and 195, the use of direct assessment is 
voluntary, except as required by the transmission integrity management 
rules. The proposed rulemaking would not change this status. Because 
direct assessment is a new process and its use is largely voluntary, 
RSPA is unable to develop a reasonable estimate of the number of 
operators the proposed rulemaking may affect. Therefore, we have not 
estimated the paperwork burden of the proposed rulemaking.
    RSPA invites comments on (1) how many operators plan to use direct 
assessment, other than to meet the transmission integrity management 
rules, and (2) the average paperwork burden of complying with the 
proposed rulemaking (in hours and cost per hour). In estimating the 
burden, note that each standard requires preparation of plans and 
procedures, and records are required by section 7 of NACE Standard 
RP0502-2002.
    Unfunded Mandates Reform Act of 1995. This proposed rulemaking does 
not impose unfunded mandates under the Unfunded Mandates Reform Act of 
1995. It does not result in costs of $100 million or more to either 
State, local, or tribal governments, in the aggregate, or to the 
private sector, and is the least burdensome alternative that achieves 
the objective of the proposed rulemaking.
    National Environmental Policy Act. RSPA has analyzed the proposed 
rulemaking for purposes of the National Environmental Policy Act (42 
U.S.C. 4321 et seq.). Because the proposed rulemaking would affect only 
those operators that voluntarily use direct assessment and because it 
largely involves processes of data collection and evaluation, we have 
preliminarily determined that the proposed rulemaking is unlikely to 
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. RSPA has analyzed the proposed rulemaking 
according to the principles and criteria contained in Executive Order 
13132 (``Federalism''). None of the proposed rules (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) impose 
substantial direct compliance costs on State and local governments; or 
(3) preempt state law. Therefore, the consultation and funding 
requirements of Executive Order 13132 do not apply.
    Executive Order 13211. This proposed rulemaking is not a 
``Significant energy action'' under Executive Order 13211. It is not a 
significant regulatory action under Executive Order 12866 and is not 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy. Further, this proposed rulemaking has 
not been designated by the Administrator of the Office of Information 
and Regulatory Affairs as a significant energy action.

List of Subjects

49 CFR Part 192

    Natural gas, Pipeline safety, Reporting and recordkeeping 
requirements.

49 CFR Part 195

    Ammonia, Carbon dioxide, Petroleum, Pipeline safety, Reporting and 
recordkeeping requirements.
    In consideration of the foregoing, RSPA proposes to amend 49 CFR 
parts 192 and 195 as follows:
    1. The authority citation for Part 192 continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60110, 
60113, and 60118; and 49 CFR 1.53.

    2. Add Sec.  192.490 to read as follows:


Sec.  192.490  Direct assessment.

    Each operator that uses direct assessment on an onshore ferrous 
pipeline to evaluate the effects of a threat in the first column or to 
meet any requirement of this subpart regarding that threat must carry 
out the direct

[[Page 61774]]

assessment according to the standard listed in the second column.

------------------------------------------------------------------------
                  Threat                              Standard
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External corrosion........................  Sec.   192.925
Internal corrosion in pipelines that        Sec.   192.927
 transport dry gas.
Stress-corrosion cracking.................  Sec.   192.929
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    3. The authority citation for Part 195 continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60118; 
and 49 CFR 1.53.

    4. Add Sec.  195.588 to read a follows:


Sec.  195.588  What standards apply to direct assessment?

    If you use direct assessment on an onshore pipeline to evaluate the 
effects of a threat in the first column or to meet any requirement of 
this subpart regarding that threat, you must carry out the direct 
assessment according to the standard listed in the second column.

------------------------------------------------------------------------
                  Threat                              Standard
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External corrosion........................  Sec.   192.925 of this
                                             chapter.
Stress-corrosion cracking.................  Sec.   192.929 of this
                                             chapter.
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    Issued in Washington, DC, on October 14, 2004.
Stacey L. Gerard,
Associate Administrator for Pipeline Safety.
[FR Doc. 04-23551 Filed 10-20-04; 8:45 am]
BILLING CODE 4910-60-P