[Federal Register Volume 69, Number 208 (Thursday, October 28, 2004)]
[Notices]
[Pages 62930-62934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24149]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration (RSPA)

[Docket No. RSPA-04-19408]


Pipeline Safety: Public Meetings on Pipeline Safety Issues

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

ACTION: Notice; four public meetings.

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SUMMARY: The Research and Special Programs Administration's (RSPA) 
Office of Pipeline Safety (OPS) is sponsoring four public meetings on 
the following pipeline safety topics: Enhancing Integrity Management of 
Gas Distribution Pipelines; Communicating with the Public; Updates on 
Pipeline Drug and Alcohol Program; and Updates on Pipeline Operator 
Qualification Program Implementation and Standards Development. The 
meetings will be held on December 14, 16, and 17, 2004, in Washington, 
DC.

[[Page 62931]]

These meetings will provide detailed review and discussion on the above 
topics and will provide the public an opportunity to give comments.

ADDRESSES: The meetings are open to all. There is no cost to attend. 
The meetings will be held at the Marriott Washington, 1221 22nd Street, 
NW., Washington, DC. The phone number for Marriott reservations is 1-
800-228-9290. Reservations by attendees must be received on or before 
November 22. Priority is given to members of the pipeline safety 
advisory committees and State pipeline safety representatives for the 
block of rooms reserved for the Department of Transportation. Any 
additional information or changes will be posted on the OPS Web page 
approximately 15 days before the meeting date at http://ops.dot.gov.

DATES: The public meetings will be held Tuesday, December 14, Thursday, 
December 16, and Friday, December 17, 2004. Meetings of the pipeline 
safety advisory committees are scheduled for December 14 and 15. A 
separate notice has been prepared for the Committee meetings.

FOR FURTHER INFORMATION CONTACT: Cheryl Whetsel, RSPA/OPS, (202) 366-
4431 or Richard Huriaux, RSPA/OPS, (202) 366-4565, regarding the 
subject matter of this notice.

Information on Services for Individuals With Disabilities

    For information on facilities or services for individuals with 
disabilities or to request special assistance at the meeting, contact 
Jean Milam at (202) 493-0967.

SUPPLEMENTARY INFORMATION:
    RSPA/OPS invites public participation in four public meetings to be 
held as follows:
    1. Tuesday, December 14--1 p.m. to 5 p.m.--Communicating with the 
Public.
    2. Thursday, December 16--8:30 a.m. to 4 p.m.--Enhancing Integrity 
Management of Gas Distribution Pipelines.
    3. Thursday, December 16--4 p.m. to 5 p.m.--Updates on Pipeline 
Drug and Alcohol Program.
    4. Friday, December 17--8:30 a.m. to 12:30 p.m.--Updates on 
Operator Qualification Program Implementation and Standards 
Development.

1. Public Meeting: Communicating With the Public

    RSPA/OPS will hold a public meeting on Communicating with the 
Public from 1 p.m. to 5 p.m. on Tuesday, December 14.

Incorporating API RP 1162

    On June 24, 2004, RSPA/OPS published a Notice of Proposed 
Rulemaking (NPRM) in the Federal Register (60 FR 35279) to require all 
pipeline operators to develop and implement public communications 
programs. The proposed rule requires that these programs be based on 
the provisions of a recently completed national consensus standard, API 
Recommended Practice (RP) 1162, Public Awareness Programs for Pipeline 
Operators. RSPA/OPS worked with its State partners and the National 
Association of Pipeline Safety Representatives (NAPSR) in developing 
the proposed rule.
    At the public meeting on December 14 RSPA/OPS will discuss its 
analysis of comments received in response to the NPRM. These comments 
are accessible in Docket No. RSPA-03-15852 on the DOT Dockets 
Management System (DMS) Web site at http://dms.dot.gov.
    Numerous comments to the docket on the proposed NPRM raised 
questions relating to the regulator's use of language in consensus 
standards that employ the words ``should'' and ``shall''. RSPA/OPS 
intends to lay out its position on this pivotal issue and the history 
behind its many previous regulatory actions incorporating national 
consensus standards. In short, national consensus standards provide a 
clear consensus on what prudent operators would do to manage the aspect 
of their business governed by the final standard. Any use of the word 
``shall'' means exactly that--the operator shall do as prescribed in 
the standard. Any use of the word ``should'' places an onus on any 
operator who deviates from the standard to document and prove the 
effectiveness of its alternative actions taken to comply with related 
provisions of the standard. This interpretation of ``should'' enables 
operators to innovate and seek efficiencies--as long as they can 
demonstrate that their alternative is at least as effective as the 
action required by the standard incorporated by reference. This matter 
will be discussed in detail in the public meeting.
    RSPA/OPS will also discuss and solicit comments on its plans to 
meet its statutory responsibility to review the communications programs 
of pipeline operators. The United States Senate Appropriations 
Committee has proposed a budget increase to fund a central review 
clearinghouse, but that model is contingent on availability of 
financial resources. Other models for review of communications plans 
will also be discussed at the public meeting.

Crisis Communication

    RSPA/OPS will also discuss ``crisis communications'' procedures 
used by pipeline operators and government. RSPA/OPS and the pipeline 
industry agree that all parties involved in pipeline safety should be 
prepared to adequately respond to a crisis and communicate with the 
public and other audiences as the crisis unfolds. To promote certain 
expectations in crisis management performance, the pipeline industry 
and RSPA/OPS first need to understand current industry and government 
practices for crisis communications management. This assessment will 
include Federal, State and local regulators, emergency responders, the 
public, the media, elected officials, industry organizations and their 
entities. The specific focus of this assessment is to identify and 
evaluate current practices for emergency response communications among 
the identified target groups. This initial assessment will yield the 
procedures and materials necessary to conduct a case study assessing a 
pipeline operator's ability to manage crisis communications during a 
critical event.

Information Grants to Communities

    A brief discussion will be held to provide an update on how RSPA/
OPS is addressing the Pipeline Safety Improvement Act (PSIA) provisions 
on this subject.

2. Public Meeting: Enhancing Integrity Management of Gas Distribution 
Pipelines

    RSPA/OPS will hold a public meeting on Enhancing Integrity 
Management of Gas Distribution Pipelines, from 8:30 a.m. to 4 p.m. on 
Thursday, December 16. The nature of the specific efforts that will be 
required to develop appropriate guidelines or requirements, and the 
related milestones, will be determined following the discussions in the 
public meeting.
    The preliminary agenda at this meeting includes briefings on the 
following topics:
     DOT Inspector General's Report to Congress on Gas 
Distribution;
     AGF study on Gas Distribution;
     DIGIT (Government & Industry roles);
     NARUC comments on Gas Distribution Safety;
     NAPSR comments on Gas Distribution Safety. This includes a 
report on State requirements (beyond Federal code) and State program 
initiatives such as, replacement programs, State gas association 
initiatives with Public Service Commissions, etc.;

[[Page 62932]]

     Differences between Distribution and Transmission 
regulations;
     Report on Promising Technology (R & D related work on 
pipeline integrity management);
     Excess Flow Valves; and,
     Panel Discussion on path forward (goals, planning process, 
work needed, milestones).

Gas Distribution Incidents

    Pipeline accidents with significant consequences gathered attention 
in recent years and prompted pipeline safety program changes. Integrity 
management rules were promulgated for hazardous liquid pipelines (65 FR 
75378; December 1, 2000) and for gas transmission pipelines (68 FR 
69778; December 15, 2003). In testimony before the Congress on July 20, 
2004, the Office of the Inspector General (OIG) reported that the 
number of incidents reported on distribution systems has consistently 
exceeded that on transmission systems. And, the number of fatalities 
and injuries reported on distribution systems has consistently been 
much higher than for transmission systems. The prevalence of incidents, 
particularly those with consequences to people, makes it important that 
some additional attention be paid to distribution pipeline integrity 
management. RSPA/OPS agrees the safety issues posed by gas distribution 
pipelines need to be addressed through appropriate integrity management 
initiatives.

American Gas Foundation Study

    The American Gas Foundation (AGF) commissioned a study of trends in 
distribution pipeline incidents, as part of an effort to help define 
what additional safety actions may be necessary. The study included a 
survey of selected operators. The Distribution Infrastructure 
Government-Industry Team (DIGIT) was formed to consider the AGF study, 
and other information, in an attempt to jointly define an approach to 
distribution pipeline integrity management. DIGIT consists of equal 
numbers of industry and state regulator representatives, including 
representation from large/small operators and municipal gas 
distribution pipeline operators. RSPA/OPS participates in the DIGIT 
meetings as an observer. We expect DIGIT to complete its review of the 
AGF study by the end of calendar year 2004.
    The decisions on what additional integrity management-related 
requirements would be appropriate for gas distribution systems will be 
made by Federal and State regulators following completion of a series 
of activities or investigations initiated separately from the DIGIT 
effort. RSPA/OPS has developed an action plan for assuring integrity of 
gas distribution pipelines.

Differences in Gas Distribution Pipeline Systems

    Ensuring the integrity of distribution pipeline systems is 
different from doing so for transmission pipelines because:
     Most pipe in distribution pipeline systems is small 
diameter and operates at low pressure. Transmission pipelines are 
generally large diameter and high pressure.
     Distribution pipeline systems are a more complex network, 
with frequent branching and interconnections. Transmission pipelines 
generally run for many miles without such connections.
     Distribution pipeline systems include a range of 
materials, including a significant amount of plastic pipe. Transmission 
pipelines are generally constructed of steel.
     Distribution pipelines are usually difficult to take out 
of service for inspection without interrupting gas service to 
customers. Transmission pipelines often include loop lines and bypasses 
that allow individual sections of pipe to be removed from service 
temporarily.
     Distribution pipeline failures tend to occur as leaks. Gas 
can migrate underground, accumulating in areas remote from the leak so 
that fires and explosions occur away from the pipeline. Transmission 
pipelines, because of their high operating pressure, tend to fail by 
rupture and the consequences occur on the pipeline.
     State pipeline safety regulators regulate most 
distribution pipeline systems.

Developing Gas Distribution IM Plan

    A plan for assuring integrity of gas distribution pipelines must 
take these differences into account. Expanding integrity management for 
distribution systems beyond currently required practices requires a 
thorough understanding of costs and benefits. As in our development of 
integrity management (IM) requirements for gas transmission and 
hazardous liquid pipelines, RSPA/OPS intends to conduct analyses and 
evaluations to make decisions in the following areas in order to assure 
that the approach finally developed is effective and not unreasonably 
burdensome, including:
     Identifying the principal threats to the integrity of 
distribution pipelines;
     Identifying requirements and practices that currently 
exist at the State and Federal levels that support management of these 
threats to integrity;
     Determining whether current requirements are written 
effectively to create opportunities and incentives for operators to use 
existing and developing technologies to support management of the 
integrity of distribution systems;
     Identifying whether opportunities exist for expedited 
development of new technologies supporting the assessment of gas 
distribution systems;
     Understanding practices beyond current requirements that 
are being used by operators and what the results are;
     Understanding whether there are requirements or approaches 
used by one or more States which are not included in Federal statutes 
but which have proven effective in managing the integrity of gas 
distribution systems; and,
     Identifying whether the opportunity exists to codify 
currently demonstrated effective IM practices in a national consensus 
standard.
    The plan for developing an approach to distribution pipeline 
integrity management will support RSPA/OPS and State regulators in 
making these decisions. The result of implementing a plan is not known 
at the outset. Achieving increased integrity of distribution pipeline 
systems may involve Federal and/or State rulemaking, development of 
guidance for adoption by States, publication and promotion of best 
practices, national consensus standards, other actions, or some 
combination of these actions.
    RSPA/OPS plan includes the elements described in the chart below. 
The nature of the specific efforts that will be required to develop 
appropriate guidelines or requirements, and the related milestones, 
will be determined after consideration of the discussion and comments 
at the public meeting.

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                  Action                              Milestone
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Analyze/Evaluate Current Experience,
 Requirements and Practices
 Survey States to identify          September 2004.
 requirements and rograms beyond Federal
 regulations.
    [cir] Regulatory requirements in        ............................
     addition to Federal standards.
    [cir] Programs outside of regulations.  ............................

[[Page 62933]]

 
   Analyze survey results.........  October 2004.
    [cir] Develop criteria for grouping     ............................
     States (e.g., common practices,
     similar environmental conditions).
    [cir] Develop ``models'' of state       ............................
     approaches, by group.
 Analyze incident/leak performance  November 2004.
 by state group, identify statistically
 significant differences.
 Analyze and update incident/leak   December 2004.
 performance data nationally.
 Complete American Gas Foundation   December 2004.
 (AGF) study.
    [cir] Analyze/characterize current      ............................
     safety performance.
    [cir] Identify regulatory and data      ............................
     gaps.
 DIGIT \1\ review of AGF study....  January 2005.
 Determine State Commission         TBD.
 practices currently in-place to assess
 cost/benefit of distribution company
 initiatives, including cost-recovery
 approaches.
Establish Mechanisms for Federal/State
 Management of the Plan
 Conference call with NAPSR Board.  October 2004.
 Meeting of State Commissioners,    November 2004.
 RSPA/OPS, and OIG (optional).
 Establish State/Federal oversight  November 2004.
 team.
    [cir] Identify industry play role.....  ............................
 Increase RSPA/OPS staffing for     2005.
 State program coordination.
Begin Public Dialog
 Facilitate a series of Public      December 16, 2004.
 Meetings.
 Identify stakeholders interested   TBD.
 in this process.
Conduct Needed Research and Development
 Complete ongoing research on       TBD.
 application of direct assessment in
 distribution environments.
 Identify means to focus integrity  TBD.
 management.
 Identify other R&D needs.........  February 2005.
 Collect data needed to fill        TBD.
 identified gaps.
Develop and Implement Approach to Assure
 Distribution Integrity
 Identify technical elements        TBD.
 applicable to distribution.
    [cir] Review current IM rules for       ............................
     applicable elements.
    [cir] Consider effect of new actions    ............................
     (e.g., excess flow valves), including
     cost/benefit of these actions.
 Identify need for new/revised      TBD.
 standards and contact consensus standards
 organizations concerning new/revised
 standard.
 Select appropriate regulatory      TBD.
 approach (not necessarily mutually
 exclusive).
    [cir] Model regulations for state       ............................
     adoption.
    [cir] Pilot programs..................  ............................
    [cir] Federal standard, possibly        ............................
     including options.
    [cir] Guidelines......................  ............................
    [cir] Changes to state grant programs;  ............................
     incentives.
    [cir] ``Best Practices''..............  ............................
 Develop selected approach........  TBD.
 Evaluate potential for cost        TBD.
 recovery through State Commissions.
------------------------------------------------------------------------
\1\ Distribution Infrastructure Government-Industry Team, a committee
  consisting of State pipeline regulators and pipeline operators, with
  RSPA/OPS participating as an observer; formed to help oversee the AGF
  study.

3. Public Meeting: Updates to Pipeline Drug and Alcohol Program

    RSPA/OPS will hold a public meeting on Updates on Pipeline Drug and 
Alcohol Program from 4 p.m. to 5 p.m. on Thursday, December 16.
    RSPA is considering a policy change. In 1993, RSPA issued a final 
rule requiring annual drug testing reports and ultimately concluded, 
based on industry comments, that ``requiring submission of contractor 
drug testing data by operators would result in major problems such as 
duplicative reporting and inaccurate data.'' At that time, RSPA 
indicated that the issue of collecting contractor testing data would be 
evaluated in the future. This issue was presented for discussion in a 
meeting of the technical pipeline safety advisory committees held in 
February 2004. Since that time, RSPA/OPS has examined statistical data 
provided by two large pipeline industry consortiums.
    A public meeting will be conducted to provide an updated overview 
on the issue of collecting contractor testing data. In considering this 
policy, we need to explore possible methods to achieve this goal. 
Specifically, we are soliciting suggestions and public comment on 
collection methodologies that are cost effective and the least 
burdensome.

4. Public Meeting: Update on Pipeline Operator Qualification Program 
Implementation and Standards Development

    RSPA/OPS will hold a public meeting on Updates on Pipeline Operator 
Qualification Program Implementation and Standards Development from 
8:30 a.m. to 12.30 p.m. on Friday, December 17.
    The preliminary agenda includes briefings on the following topics:
1. RSPA/OPS OQ Initiatives
     The developmental status of the ASME B31Q standard to 
address the need for a long term, holistic, technically-based 
resolution of 13 open items identified by the general public, the 
industry and the regulators. The 13 open items include:
    1. The Distinction between Maintenance and New Construction;
    2. The treatment of emergency response;
    3. Incorporation of Additional Covered Tasks (e.g., excavation);
    4. Justification of Re-evaluation intervals;
    5. Reference to Training;
    6. Inspection of the Approaches through which the Operator Expects 
to Achieve Improvement;
    7. Direct observation of Non-Qualified Individuals;
    8. Abnormal Operating Conditions;
    9. Qualified Person Contribution to Incidents;
    10. Acceptable Evaluation Methods (KSAs);
    11. Extent of Documentation;
    12. Noteworthy Practices; and
    13. Acceptance Criteria for Small Operators.

[[Page 62934]]

2. RSPA/OPS Inspectional Findings
     What inspectors are discovering from their comprehensive 
inspections when utilizing the OQ protocol format.
3. RSPA/OPS Congressional Reporting
     What data RSPA/OPS is collecting, tabulating and analyzing 
for an OQ status and results report to Congress.

Congressional Mandates

    The final rule on Pipeline Operator Qualification (OQ) on August 
27, 1999 (64 FR 46853), required pipeline operators to ensure that 
individuals working on gas or hazardous liquid pipeline facilities have 
the knowledge and skills to competently perform covered tasks and to be 
able to recognize and react to abnormal operating conditions that may 
occur while performing covered tasks.
    The Pipeline Safety Improvement Act (PSIA) of 2002 (Public Law 107-
355; December 17, 2002), expanded OQ statutory mandates to require 
pipeline operators to: (1) Establish ``appropriate'' levels of training 
and document individual training; (2) establish creditable and rational 
bases for subsequent evaluations; (3) eliminate performance observation 
as the sole means of evaluation for requalification (unless authorized 
by RSPA/OPS); and (4) notify RSPA/OPS when the operator ``significantly 
modifies'' an operator OQ plan or evaluation program after it was 
inspected by an authorized state or Federal pipeline inspector. In 
addition, Congress required RSPA/OPS to report on the status and 
results of its OQ initiatives. A public meeting on this matter was held 
during a joint technical pipeline safety standards committee session on 
February 4, 2004, in Dulles, Virginia.

Improvements in OQ Program Oversight

    RSPA/OPS and State agencies have (1) Developed OQ protocols as 
standards for inspectors to evaluate program adequacy; (2) conducted 
and are still conducting comprehensive inspections and data collection 
on OQ programs; (3) provided more consistent and thorough inspector OQ 
training; (4) addressed small pipeline operator OQ program issues; (5) 
worked on national consensus standards committees; and (6) provided 
Internet-based informational resources for operators and the general 
public.

    Issued in Washington, DC, on October 25, 2004.
Stacey L. Gerard,
Associate Administrator for Pipeline Safety.
[FR Doc. 04-24149 Filed 10-27-04; 8:45 am]
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