[Federal Register Volume 71, Number 51 (Thursday, March 16, 2006)]
[Notices]
[Pages 13670-13673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-3833]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-04-18858; Notice 2]


Pipeline Safety: Grant of Waiver; Duke Energy Gas Transmission 
Company

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
Department of Transportation (DOT).

ACTION: Notice; Grant of Waiver.

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SUMMARY: Duke Energy Gas Transmission Company (DEGT) petitioned the 
Pipeline and Hazardous Materials Safety Administration (PHMSA) for a 
waiver of compliance with 49 CFR 192.611, which requires natural gas 
pipeline operators to confirm or revise the maximum allowable operating 
pressure of a pipeline after a change in class location. DEGT requested 
the waiver for certain segments of its natural gas pipeline located in 
Tennessee and Kentucky that have changed, and for segments that may 
change from Class 1 to Class 2 in the future. Under the pipeline safety 
regulations, class location indicates the population density near a 
pipeline. As the population along a pipeline increases, the class 
location increases. DEGT proposed to conduct a set of alternative risk 
control activities, in lieu of pipe replacement or pressure reduction, 
on all the segments requested in the waiver.

SUPPLEMENTARY INFORMATION:

Background

    In accordance with 49 U.S.C. 60126, PHMSA established the Risk 
Management Demonstration Program (RMDP) in partnership with operators 
of natural gas and hazardous liquid pipeline facilities. The RMDP 
determines how risk management principles can be used to compliment and 
improve the existing Federal pipeline safety regulatory process. Under 
the RMDP, pipeline operators proposed risk management projects to 
demonstrate how a structured and formalized risk management process 
could enable a company to customize its safety program to allocate 
resources for its pipeline's particular risks, which would lead to an 
enhanced level of safety and environmental protection. DEGT and 11 
other pipeline companies were selected as potential candidates for RMDP 
projects.\1\ In evaluating DEGT as a RMDP candidate, PHMSA and DEGT 
engaged in a consultation process in which DEGT's safety practices and 
pipeline risk management program were scrutinized. During this 
consultation process, DEGT identified 21 sites where the class location 
had changed from Class 1 to Class 2 along the pipeline route of 2 
compressor station discharges--1 located in Tennessee and the other in 
Kentucky. These segments include DEGT's 3 parallel natural gas 
pipelines, Lines 10, 15, and 25, which are part of its Texas Eastern 
Pipeline System.
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    \1\ ``Candidates for the Pipeline Risk Management Demonstration 
Program'' (62 FR 143; July 25, 1997); ``Pipeline Safety: Remaining 
Candidates for the Pipeline Risk Management Demonstration Program'' 
(62 FR 197; October 10, 1997).
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    While awaiting approval of its risk demonstration project, on 
October 5, 2000, DEGT requested a waiver of compliance from 49 CFR 
192.611, for the 15 pipe segments located in Tennessee that had changed 
from Class 1 to Class 2. The Federal pipeline safety regulations at 
Sec.  192.609 require a gas pipeline operator to complete a class 
location change study whenever they believe 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 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 unit is determined according to the following criteria in Sec.  
192.5(b):
    Class 1--an offshore area or 10 or fewer buildings intended for 
human occupancy;

[[Page 13671]]

    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).
    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), 
Sec.  192.611 requires the operator to reduce the pressure on the 
pipeline to provide an additional margin of safety. The operator may be 
able to avoid the pressure reduction if a pressure test on the pipe 
confirms that the prescribed safety margin exists. If a previous 
pressure test has not confirmed the prescribed safety margin, the 
operator must test the pipe to confirm the margin, reduce the pressure, 
or replace the pipe with new pipe. DEGT proposed to conduct alternative 
risk control activities in lieu of compliance with Sec.  192.611 and 
asserted that the alternative risk control activities would provide a 
level of safety equivalent to that required by Sec.  192.611.
    On December 11, 2000, PHMSA published a notice in the Federal 
Register seeking comments on its intent to grant DEGT the waiver (65 FR 
77419); no comments were received. On March 9, 2001, PHMSA granted and 
published the waiver for the 15 pipe segments in Tennessee (66 FR 
14256).
    On June 1, 2004, DEGT submitted a second petition for waiver of 
Sec.  192.611. DEGT requested the waiver apply to the 21 pipe segments 
located in Tennessee and Kentucky that changed from Class 1 to Class 2 
and to segments that may change from Class 1 to Class 2 in the future. 
These were the segments initially identified for DEGT's Risk 
Demonstration project, including the 15 segments on which PHMSA had 
granted the waiver in March 2001. DEGT also requested the waiver apply 
to all pipeline segments that may, in the future, change from Class 1 
to Class 2. These pipeline segments are found at DEGT's Mt. Pleasant, 
Tennessee compressor station discharge, Gladeville compressor station, 
and the pipeline segments between its Owingsville, Kentucky compressor 
station discharge and Wheelersburg compressor station.
    On August 16, 2004, PHMSA published a notice in the Federal 
Register requesting public comments on DEGT's June 1, 2004 request for 
waiver (69 FR 50438); PHMSA did not receive any comments.

DEGT's Waiver Request

    DEGT's waiver request involves 3 parallel pipelines in its Texas 
Eastern Pipeline System, Lines 10, 15, and 25: (1) 3 line segments 
running downstream of its Mt. Pleasant, Tennessee compressor station 
discharge to its Gladeville compressor station, each approximately 63.6 
miles; and (2) 3 line segments running downstream of its Owingsville, 
Kentucky compressor station discharge to its Wheelersburg compressor 
station, each approximately 60.5 miles (collectively, the ``waiver 
sites'').
    Within the waiver sites are 21 pipe segments (identified in the 
following table) that have changed from Class 1 to Class 2:

----------------------------------------------------------------------------------------------------------------
                                                                                       Begin
                                            County & State          Line number      milepost       End milepost
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Mt. Pleasant Station Discharge:
    Site 1................  Maury Co., Tennessee.......              10          226.88          227.35
                                                                              15          226.90          227.50
                                                                              25          227.05          227.50
    Site 2................  Maury Co., Tennessee.......              10          228.49          229.07
                                                                              15          228.65          229.21
                                                                              25          228.63          229.22
    Site 3................  Maury Co., Tennessee.......              10          238.01          239.19
                                                                              15          238.17          239.34
                                                                              25          238.17          239.36
    Site 3A...............  Maury Co., Tennessee.......              25          241.69          241.72
    Site 4................  Maury Co., Tennessee.......              10          247.79          247.88
                                                                              15          247.94          248.04
                                                                              25          247.94          248.03
    Site 5................  Williamson Co., Tennessee..              10          264.03          265.31
                                                                              15          264.19          265.49
                                                                              25          264.24          265.48
Owingsville Station Discharge:
    Site 6................  Fleming Co., Kentucky......              10          514.78          514.98
                                                                              25          515.25          515.28
    Site 7................  Lewis Co., Kentucky........              10          531.10          533.33
                                                                              15          531.54          533.75
                                                                              25          531.54          533.76
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    DEGT requested that the waiver granted on March 9, 2001 for the 15 
segments be extended to include the 6 segments in Kentucky that have 
changed from Class 1 to Class 2. This request would include the 
segments within both the Mt. Pleasant compressor station discharge and 
the Owingsville compressor station discharge that may change from Class 
1 to Class 2 in the future.
    DEGT has implemented the alternative risk control activities that 
were outlined in the waiver issued on March 9, 2001. DEGT noted that it 
has also implemented the following risk control activities on the above 
identified 15 segments in Tennessee and the six segments in Kentucky:
     Conducted internal inspections on the entire length of the 
waiver segments using geometry and magnetic flux leakage in-line 
inspection tools. These tools were used to identify indications of wall 
loss (e.g., corrosion), as well as dents and gouges from initial 
construction damage or damage from third party excavators working along 
the pipeline right-of-way. The internal

[[Page 13672]]

inspection included Lines 10, 15, and 25 in the Mt. Pleasant compressor 
station discharge covering approximately 190 miles of pipe, and Lines 
10, 15, and 25 in the Owingsville compressor station discharge covering 
approximately 185 miles of pipe. The results of the inspection were 
provided to PHMSA's Southern Region.
     Repaired indications of corrosion, existing construction 
damage, and existing outside force damage identified by the internal 
inspection tools using conservative investigation and repair criteria.
     Hydrostatically tested portions of Line 10 that previously 
had not been tested to 100 percent of the specified minimum yield 
strength. This includes 2 sites in Tennessee (2.5 miles northwest of 
Rally Hill in Maury County and 3.5 miles east-northeast of Arrington in 
Williamson County) and 1 site in Kentucky (4.4 miles southeast of 
Kinniconick in Lewis County). The results of the inspection were 
provided to PHMSA's Southern Region.
     Performed enhanced third-party damage prevention 
activities. This included installation, for a one-year trial period, of 
a TransWave monitoring system on the full length of pipeline within the 
Mt. Pleasant discharge (63.6 miles on each line). The TransWave system 
was used to monitor the change in waveform of small currents that may 
be caused by disturbances created by excavation or other third-party 
activities. The TransWave system was employed to determine its 
reliability and usefulness at detecting third-party encroachments 
(construction, excavation, etc.) in the pipeline right-of-way. At the 
conclusion of the one-year trial period, DEGT submitted the final test 
results to PHMSA's Southern Region.
    PHMSA has determined that these activities provide an equivalent 
level of protection and safety as that provided by 49 CFR Sec.  
192.611.

Grant of Waiver

    In light of the aforementioned, PHMSA finds that granting DEGT a 
waiver from complying with 49 CFR 192.611 for the entire 21 pipeline 
segments located along certain segments of its natural gas pipeline in 
Tennessee and Kentucky that have changed from Class 1 to Class 2 and 
for those segments that may change from Class 1 to Class 2 in the 
future, is not inconsistent with pipeline safety regulations. The 
alternative activities DEGT conducted on the 21 segments where a class 
location change occurred provides an equivalent level of safety and 
protection to that provided by the regulations at 49 CFR 192.611. The 
actions required by this waiver for future class location sites will 
also provide equivalent safety and protection. The grant of this waiver 
will conclude all PHMSA action on DEGT's projects under the RMDP.
    Under 49 CFR 192.611, PHMSA grants DEGT's request for a waiver for 
the 21 segments on Lines 10, 15, and 25 within its Mt. Pleasant, 
Tennessee compressor station discharge to its Gladeville compressor 
station discharge and within its Owingsville, Kentucky compressor 
station discharge to its Wheelersburg compressor station discharge that 
has changed from Class 1 to Class 2. This waiver supersedes the waiver 
granted on March 9, 2001.
    PHMSA further grants DEGT's request for waiver of the requirements 
of 49 CFR 192.611 for the segments on Lines 10, 15, and 25 within its 
Mt. Pleasant, Tennessee compressor station discharge to its Gladeville 
compressor station discharge and within its Owingsville, Kentucky 
compressor station discharge to its Wheelersburg compressor station 
discharge that may change from Class 1 to Class 2 in the future.
    This waiver may change certain line segments from Class 1 to Class 
2. This will be contingent upon DEGT providing information and 
notification to PHMSA, and PHMSA not objecting to including the line 
segments. DEGT will not be allowed to apply the waiver to any site that 
PHMSA objects to.
    Should DEGT fail to comply with any terms of the waiver, or should 
PHMSA determine that the terms of this waiver are no longer appropriate 
or that the waiver is inconsistent with pipeline safety, PHMSA may 
revoke this waiver and require DEGT to comply with the regulatory 
requirements of 49 CFR 192.611 and any other applicable regulations.
    This waiver is granted on the condition that DEGT complies with the 
following requirements:
    1. DEGT must meet the technical criteria of the PHMSA Class Change 
Waiver Protocol or other criteria for class location waivers that PHMSA 
may adopt for any future class change sites within the waiver segments 
that change from Class 1 to Class 2.
    2. DEGT must provide prior notice to PHMSA's Southern Region of its 
intent to rely on this waiver, rather than replace pipe, in any future 
class change sites along the waiver segments so that PHMSA can 
independently verify that the criteria have been met. This notice must 
include a schedule of any remedial measures to be performed in future 
waiver sites. PHMSA may request additional information or clarification 
before allowing DEGT to apply the waiver to any future site. DEGT may 
proceed with the waiver on the future site unless PHMSA objects.
    3. DEGT must conduct additional public information activities in 
the populated areas along all waiver segments. This should include 
providing information to local emergency response personnel/agencies 
about the operation of the pipeline, the possibility of accidents, and 
actions that must be taken in the event of an accident on the pipeline.
    4. DEGT must conduct future inspections of the waiver segments and 
remediate any defects identified in the waiver segments in accordance 
with subpart O of 49 CFR part 192.
    5. Subsequent in-line inspections for the waiver sites must be 
scheduled in accordance with 49 CFR part 192, subpart O.
    6. The waiver sites must be in compliance with American Society of 
Mechanical Engineer's standard B31.8S criteria for stress corrosion 
cracking site identification and site investigation/testing.
    7. DEGT must provide the PHMSA's Southern Region with sufficient 
advance notice to enable PHMSA staff to attend and participate in all 
significant risk assessment activities involving the waiver segments.
    8. Within the three months following approval of this waiver and 
annually thereafter, DEGT is required to report the following 
information to PHMSA's Southern Region:
     The economic benefit to the company. This should address 
both the costs avoided from not replacing the pipe, and the added costs 
of the inspection program (required for the initial report only).
     In the first annual report, fully describe how the public 
benefits from energy availability. Should address the benefits of 
avoided disruptions as a consequence of pipe replacement and the 
benefits of maintaining system capacity. Subsequent reports must 
indicate any changes to this initial assessment.
     The results of any in-line inspections or direct 
assessments performed during the previous year within the inspection 
area containing the waiver location(s).
     Any new integrity threats identified during the previous 
year within the inspection area containing the waiver location(s).
     Any encroachment of the inspection area including the 
waiver location(s) and new residences (by number) or areas of public 
congregation.
     Any incidents (both reportable and non reportable) that 
occurred during the

[[Page 13673]]

previous year associated with the inspection area containing the waiver 
location(s).
     Any leaks on the pipeline (both reportable and non 
reportable) that occurred during the previous year in the inspection 
area containing the waiver location(s).
     All repairs on the pipeline made during the previous year 
in the inspection area containing the waiver location(s).
     On-going damage prevention initiatives on the pipeline in 
the inspection area containing the waiver location(s) and a discussion 
on their success.
     Any mergers, acquisitions, transfers of assets, or other 
events affecting the regulatory responsibility of the company operating 
the pipeline to which the waiver applies.

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

    Issued in Washington, DC, on March 13, 2006.
Joy Kadnar,
Director for Engineering and Engineering Support.
 [FR Doc. E6-3833 Filed 3-15-06; 8:45 am]
BILLING CODE 4910-60-P