[Federal Register Volume 71, Number 189 (Friday, September 29, 2006)]
[Proposed Rules]
[Pages 57457-57459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16031]



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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 192

[Docket No. PHMSA-2003-15852]
RIN 2137-AE17


Pipeline Safety: Applicability of Public Awareness Regulations to 
Certain Gas Distribution Operators

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: PHMSA proposes to relax regulatory requirements governing 
public awareness programs conducted by operators of master meter 
systems and certain operators of petroleum gas systems. These operators 
typically manage property and incidentally provide gas service to 
customers located on the property. The proposed change provides a less 
burdensome means for these operators to satisfy public awareness needs.

DATES: Anyone interested in filing written comments on the rule 
proposed in this document must do so by November 28, 2006. PHMSA will 
consider late filed comments so far as practicable.

ADDRESSES: Comments should reference Docket No. PHMSA-2003-15852 and 
may be submitted in the following ways:
     DOT Web site: http://dms.dot.gov. To submit comments on 
the DOT electronic docket site, click ``Comment/Submissions,'' click 
``Continue,'' fill in the requested information, click ``Continue,'' 
enter your comment, then click ``Submit.''
     Fax: 1-202-493-2251.
     Mail: Docket Management System: U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-0001.
     Hand Delivery: DOT Docket Management System; Room PL-401 
on the plaza level of the Nassif Building, 400 Seventh Street, SW., 
Washington, DC between 9 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays.
     E-Gov Web Site: http://www.Regulations.gov. This site 
allows the public to enter comments on any Federal Register notice 
issued by any agency.
    Instructions: You should identify the docket number, PHMSA-2003-
15852, at the beginning of your comments. If you submit your comments 
by mail, you should submit two copies. If you wish to receive 
confirmation that PHMSA received your comments, you should include a 
self-addressed stamped postcard. Internet users may submit comments at 
http://www.regulations.gov, and may access all comments received by DOT 
at http://dms.dot.gov by performing a simple search for the docket 
number.

    Note: All comments will be posted without changes or edits to 
http://dms.dot.gov including any personal information provided. 
Please see the Privacy Act heading in the Regulatory Analyses and 
Notices section of the SUPPLEMENTARY INFORMATION.


FOR FURTHER INFORMATION CONTACT: For information about this rulemaking 
contact Barbara Betsock by phone at (202) 366-4361, or by e-mail at 
[email protected]. For information about public awareness 
programs, contact Blaine Keener by phone at (202) 366-0970 or e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    PHMSA published a final rule on public awareness programs on May 
19, 2005 (70 FR 28833). The rule requires each pipeline operator to 
develop a written public awareness program following American Petroleum 
Institute Recommended Practice 1162 (API RP 1162) and to carry out that 
program on a continual basis. A public awareness program includes 
outreach to populations near the pipelines on safety and environmental 
issues involving pipelines and to emergency responders on identifying 
and responding to pipeline emergencies. The American Public Gas 
Association (APGA) filed a petition for reconsideration of the public 
awareness regulations on June 10, 2005, seeking to change the 
regulatory requirements for master meter systems. In a written response 
to the APGA and through public workshops and an advisory bulletin (71 
FR 34998), PHMSA has indicated its intention to relieve operators of 
master meter and petroleum gas distribution systems from some of these 
requirements.

Applicability to Operators of Master Meter Systems

    A master meter system is defined in 49 CFR 191.3. An operator of a 
master meter system receives gas through a meter as the customer of a 
local distribution company and then redistributes the gas on its own 
property. The operator of a master meter system distributes gas as an 
incidental part of a primary business. For example, a typical master 
meter operator manages a trailer park or apartment complex and may 
charge residents for the gas service through the rent. The master meter 
system is typically located on the property of the master meter 
operator. Data received from forty-seven state pipeline safety agencies 
in 2005 shows over 6,500 master meter systems in operation. Because an 
operator of a master meter system does not file annual reports with 
PHMSA, we have no quantified data about the size of the systems, either 
by mileage or by number of customers.
    The customers of a master meter operator live near pipelines 
operated by the gas distribution company supplying the master meter 
system. Because of this proximity, APGA notes, in its petition for 
reconsideration, the requirement for the gas distribution company to 
conduct outreach to these residents and to the local emergency 
responders. Messages from the master meter operator might differ from 
those of the gas distribution system serving the master meter. APGA, 
which represents distribution companies owned by municipalities, 
expresses concern these different messages might confuse both the 
public and emergency responders. We agree with this concern. However, 
we do not agree with APGA's suggested alternative approaches, complete 
relief from public awareness regulations or a requirement to pass along 
information received from the distribution company providing gas 
service to the master meter operator.
    Given the proximity of the master meter system to the gas 
distribution company's pipeline, customers of the master meter operator 
may already receive information from the gas distribution company. The 
gas distribution company will provide information about recognizing and 
reporting a pipeline safety issue. However, this would not ordinarily 
include information about the master meter system or how to notify the 
master meter operator about pipeline events on the master meter system. 
The master meter operator needs to fill this information gap for its 
customers. We propose to require a master meter operator to conduct a 
limited public education program reaching (1) customers of the master 
meter system and (2) persons controlling other property, if any, the 
master meter system crosses.
    Proposed 49 CFR 192.616(j) provides the alternative approach to 
public awareness programs just described. We based it on the 
communication requirements for customers described in API RP 1162. To 
make compliance

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easier for these operators, we have spelled out the requirements in the 
language of the proposed rule rather than in cross-referencing API RP 
1162.
    We are proposing to relieve the master meter operators of the rest 
of the requirements of the more extensive API RP 1162 public awareness 
program. The damage prevention regulations have long excepted master 
meter operators from requirements to extend outreach activities to 
excavators and the public. (49 CFR 192.614(e)). In excepting master 
meter operators, we found their participation in the activities 
unnecessary for safety. These outreach activities are consistent with 
damage prevention outreach described for public awareness programs in 
API RP 1162. As a pipeline operator, the operator of a master meter has 
a continuing duty, under 49 CFR 192.615, to maintain liaison with local 
emergency responders. This liaison ensures communication and 
coordination if a pipeline emergency occurs. A pipeline emergency on a 
master meter system will likely be contained on the property owned by 
the operator of the master meter system. However, the operator of a 
master meter system lacks the expertise of the local gas distribution 
company in pipeline safety issues needed to effectively conduct the 
more extensive public awareness program described in API RP 1162 for 
outreach to the responders, local officials, excavators, and the 
general public.

Applicability to Operators of Petroleum Gas Systems

    Many operators of petroleum gas systems are similar to operators of 
master meters because they distribute gas as an incidental part of 
their primary business. The operator of a petroleum gas system receives 
a supply of propane (or similar petroleum product), frequently by 
truck; vaporizes it; and supplies its customers with petroleum gas. A 
petroleum gas system may be in a remote area without gas distribution 
service, for example a ski lodge. Data received from forty-eight state 
pipeline safety agencies in 2005 shows over 1,000 petroleum gas systems 
in operation. Operators of petroleum gas systems with more than 100 
customers file annual reports with PHMSA along with other gas 
distribution operators. However, because these reports do not identify 
the type of gas distributed, we have no quantified data about the size 
of petroleum gas systems, either in terms of mileage or of number of 
customers.
    Some operators of a petroleum gas system distribute gas as a major 
part of their business. These operators have pipeline safety expertise 
equivalent to other gas distribution companies and should develop and 
implement public awareness programs. Others, like operators of master 
meter systems, distribute gas incidentally to a primary business, such 
as property management. These petroleum gas operators need to 
communicate with their customers and those persons controlling property 
they cross. They also need to maintain liaison required by 49 CFR 
192.615 with emergency responders. However, they will be less effective 
in the remaining outreach activities required for public awareness. We 
propose to relieve them of public awareness requirements to the same 
extent as master meter operators, retaining the same communication 
requirements. Proposed 49 CFR 192.616(j), which provides the 
alternative for master meter operators, also addresses petroleum gas 
operators.

Compliance Dates

    The regulations currently require development and implementation of 
public awareness programs meeting API RP 1162. This proposal provides 
less onerous requirements for master meter and petroleum gas operators 
(for whom gas transportation is not a primary business activity) 
regardless of size. We propose to require compliance in early 2007. We 
believe this will allow sufficient time for compliance.

Statutory Considerations

    PHMSA has broad authority to issue safety standards on the 
operation and maintenance of gas and hazardous liquid pipelines. This 
authority is in 49 U.S.C. 60102(a). In addition, 49 U.S.C. 60116 
provides specific requirements for operators to develop public 
awareness programs and authorizes PHMSA to issue implementing 
regulations. Although this proposed rule provides less onerous 
requirements for certain master meter and petroleum gas system 
operators, compliance with it would satisfy the requirements 49 U.S.C. 
60116 places on operators. Under 49 U.S.C. 60102(b), a pipeline safety 
standard must be practicable and designed to meet the need for pipeline 
safety and for protection of the environment. To satisfy this 
requirement, PHMSA must consider several factors in issuing a safety 
standard. These factors include the relevant available pipeline safety 
and environmental information, the appropriateness of the standard for 
the type of pipeline, the reasonableness of the standard, and 
reasonably identifiable or estimated costs and benefits. PHMSA has 
considered these factors in developing this proposed rule. PHMSA must 
also consider any comments received from the public and any comments 
and recommendations of the Technical Pipeline Safety Standards 
Committee on gas pipeline safety standards and the Technical Hazardous 
Liquid Pipeline Safety Standards Committee on hazardous liquid pipeline 
safety standards (pipeline advisory committees). This document seeks 
public comment on the proposed rule; the pipeline advisory committees 
will formally consider it in a future meeting. PHMSA will address the 
public comments and the recommendations of the pipeline advisory 
committees when the agency prepares a final rule.

Regulatory Analyses and Notices

Privacy Act Statement

    Anyone may search the electronic form of all comments received for 
any of our dockets. You may review DOT's complete Privacy Act Statement 
in the Federal Register published on April 11, 2000 (65 FR 19477) or 
you may visit http://dms.dot.gov.

Executive Order 12866 and DOT Policies and Procedures

    This proposed rule is not a significant regulatory action under 
section 3(f) of Executive Order 12866 (58 FR 51735) and, therefore, was 
not subject to review by the Office of Management and Budget. This 
proposed rule is not significant under the Regulatory Policies and 
Procedures of the Department of Transportation (44 FR 11034).

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), PHMSA 
must consider whether rulemaking actions would have a significant 
economic impact on a substantial number of small entities. This 
proposed rule would affect operators of master meters and petroleum gas 
systems. Although we do not have quantitative data, we believe many of 
the operators of these systems are small entities. This proposed rule 
would relieve regulatory burden for most of these operators. PHMSA 
concludes this proposed rule would not have a significant negative 
economic impact on any small entity.

Executive Order 13175

    PHMSA has analyzed this proposed rulemaking according to 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 or 
impose substantial direct compliance costs, the

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funding and consultation requirements of Executive Order 13175 do not 
apply.

Paperwork Reduction Act

    This proposed rule does not impose any new information collection 
requirements.

Unfunded Mandates Reform Act of 1995

    This proposed rule 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

    PHMSA has analyzed the proposed rulemaking for purposes of the 
National Environmental Policy Act (42 U.S.C. 4321 et seq.) and 
preliminarily determined the proposed rulemaking is unlikely to affect 
the quality of the human environment significantly. An environmental 
assessment document is available for review in the docket. PHMSA will 
make a final determination on environmental impact after reviewing the 
comments to this proposal.

Executive Order 13132

    PHMSA has analyzed the proposed rulemaking according to Executive 
Order 13132 (``Federalism''). The proposed rule does not have a 
substantial direct effect 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. The proposed 
rule does not impose substantial direct compliance costs on State and 
local governments. This proposed regulation would not preempt state law 
for intrastate pipelines. Therefore, the consultation and funding 
requirements of Executive Order 13132 do not apply.

Executive Order 13211

    Transporting gas impacts the nation's available energy supply. 
However, this proposed rulemaking is not a ``significant energy 
action'' under Executive Order 13211. It also 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, the Administrator of the Office of Information and 
Regulatory Affairs has not identified this proposed rule as a 
significant energy action.

List of Subjects in 49 CFR Part 192

    Pipeline safety.

    For the reasons provided in the preamble, PHMSA proposes to amend 
49 CFR Part 192 as follows:

PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE: 
MINIMUM FEDERAL SAFETY STANDARDS

    1. The authority citation for part 192 continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60110, 
60113, 60116, and 60118; and 49 CFR 1.53.

    2. Amend Sec.  192.616 as follows:
    a. Revise paragraph (a);
    b. Amend paragraph (h) by revising the second sentence; and
    c. Add paragraph (j).
    The changes read as follows:


Sec.  192.616  Public awareness.

    (a) Except for an operator of a master meter or petroleum gas 
system covered under paragraph (j) of this section, each pipeline 
operator must develop and implement a written continuing public 
education program that follows the guidance provided in the American 
Petroleum Institute's (API) Recommended Practice (RP) 1162 (IBR, see 
Sec.  192.7).
* * * * *
    (h) * * * The operator of a master meter or petroleum gas system 
covered under paragraph (j) of this section must complete development 
of its written procedure by March 31, 2007. * * *
* * * * *
    (j) Unless the operator transports gas as a primary activity, the 
operator of a master meter or petroleum gas system is not required to 
develop a public awareness program as prescribed in paragraphs (a) 
through (g) of this section. Instead the operator must develop and 
implement a written procedure to provide its customers public awareness 
messages twice annually. If the master meter or petroleum gas system is 
located on property the operator does not control, the operator must 
provide similar messages twice annually to persons controlling the 
property. The public awareness message must include:
    (1) A description of the purpose and reliability of the pipeline;
    (2) An overview of the hazards of the pipeline and prevention 
measures used;
    (3) Information about damage prevention;
    (4) How to recognize and respond to a leak; and
    (5) How to get additional information.

    Issued in Washington, DC, on September 19, 2006.
Theodore L. Willke,
Acting Associate Administrator for Pipeline Safety.
[FR Doc. E6-16031 Filed 9-28-06; 8:45 am]
BILLING CODE 4910-60-P