[Federal Register Volume 73, Number 93 (Tuesday, May 13, 2008)]
[Notices]
[Pages 27607-27608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-10627]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-RSPA-2004-19856]


Pipeline Safety: Notice to Operators of Gas Transmission 
Pipelines on the Regulatory Status of Direct Sales Pipelines

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

ACTION: Notice; Issuance of Advisory Bulletin.

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SUMMARY: PHMSA advises gas transmission pipeline operators that the 
Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006

[[Page 27608]]

eliminated the former exception of direct sales natural gas pipelines 
from the definition of an interstate gas pipeline facility. As a 
result, direct sales gas transmission pipelines subject to the 
jurisdiction of the Federal Energy Regulatory Commission (FERC) 
formerly considered to be intrastate pipelines for purposes of the 
pipeline safety laws are now defined as interstate pipelines. As 
interstate pipelines, direct sales pipelines are subject to the 
applicable Federal pipeline safety regulations and PHMSA is responsible 
for regulatory oversight and enforcement. In some cases, inspections of 
these pipelines may continue to be conducted by a State pipeline safety 
agency acting as PHMSA's representative.

FOR FURTHER INFORMATION CONTACT: Cheryl Whetsel, (202) 366-4431, or by 
e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Federal pipeline safety laws (49 U.S.C. 60101 et seq.) define 
an ``interstate gas pipeline facility'' as a facility subject to the 
jurisdiction of the FERC under the Natural Gas Act (15 U.S.C. 717 et 
seq.). Prior to the passage of the Pipeline Inspection, Protection, 
Enforcement, and Safety Act of 2006 (PIPES Act) (Pub. L. 109-468), the 
interstate gas pipeline facility definition contained an exception for 
a gas pipeline facility transporting gas from an interstate gas 
pipeline in a State to a direct sales customer in that State buying gas 
for its own consumption. Because of this exception, these pipelines 
were considered to be intrastate pipelines and were regulated on a 
state-by-state basis. Section 7 of the PIPES Act changed this by 
eliminating the exception. As a result, direct sales gas transmission 
pipelines subject to FERC jurisdiction formerly considered to be 
intrastate pipelines for purposes of the pipeline safety laws are now 
considered to be interstate pipelines.
    As interstate gas pipeline facilities, direct sales pipelines are 
subject to the applicable Federal pipeline safety regulations and PHMSA 
is responsible for regulatory oversight and enforcement. Subjecting 
direct sales gas pipelines to the same requirements as other interstate 
gas pipelines should provide improved regulatory certainty and ensure 
consistency in regulatory requirements.
    In cases where a State has both an annual certification for gas 
under 49 U.S.C. 60105 and an agreement under 49 U.S.C. 60106(b), 
inspections of these direct sales pipelines may continue to be 
conducted by a State pipeline safety agency acting as PHMSA's 
representative although any enforcement action must be referred to 
PHMSA. If the line has a State certification from the State Public 
Utility Commission (PUC) that such State PUC has regulatory 
jurisdiction over the rates and service of the line and is exercising 
it, that would be grounds for concluding that the line is not subject 
to FERC jurisdiction and therefore can be regulated as an intrastate 
pipeline by a State having a certification for gas under 49 U.S.C. 
60105. This change does not affect direct sales pipelines that are 
intrastate pipelines because they extend from another intrastate line 
to the consumer.

II. Advisory Bulletin (ADB-08-01)

    To: Owners and Operators of Gas Transmission Pipeline Systems.
    Subject: Notice to Operators of Gas Transmission Pipelines on the 
Regulatory Status of Direct Sales Pipelines.
    Advisory: PHMSA advises gas transmission pipeline operators that 
the Pipeline Inspection, Protection, Enforcement, and Safety Act of 
2006 eliminated the exception of direct sales natural gas pipelines 
from the definition of an interstate gas pipeline facility. As a 
result, direct sales gas transmission pipelines subject to the 
jurisdiction of FERC formerly considered to be intrastate pipelines for 
purposes of the pipeline safety laws are now defined as interstate 
pipelines. As interstate pipelines, direct sales pipelines are subject 
to the applicable Federal pipeline safety regulations and PHMSA is 
responsible for regulatory oversight and enforcement. In some cases, 
inspections of these pipelines may continue to be conducted by a State 
pipeline safety agency acting as PHMSA's representative.

    Authority: 49 U.S.C. chapter 601; 49 CFR 1.53.

    Issued in Washington, DC, on May 7, 2008.
Jeffrey D. Wiess,
Associate Administrator for Pipeline Safety.
 [FR Doc. E8-10627 Filed 5-12-08; 8:45 am]
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