[Federal Register Volume 85, Number 129 (Monday, July 6, 2020)]
[Rules and Regulations]
[Pages 40132-40134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14403]



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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Part 192

[Docket No. PHMSA-2011-0023; Amdt. No. 192-127]
RIN 2137-AE72


Pipeline Safety: Safety of Gas Transmission Pipelines: MAOP 
Reconfirmation, Expansion of Assessment Requirements, and Other Related 
Amendments: Response to a Joint Petition for Reconsideration

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

ACTION: Final rule; petition for reconsideration.

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SUMMARY: This document responds to a joint Petition for Reconsideration 
(Petition) that was submitted on October 31, 2019, by the American Gas 
Association, the American Petroleum Institute, the American Public Gas 
Association, and the Interstate Natural Gas Association of America (the 
Associations). In the Petition, the Associations requested that PHMSA 
amend the final rule titled ``Safety of Gas Transmission Pipelines: 
MAOP Reconfirmation, Expansion of Assessment Requirements, and Other 
Related Amendments'' (Gas Transmission Final Rule) published in the 
Federal Register on October 1, 2019. In response to the Petition, PHMSA 
is amending the Gas Transmission Final Rule to address the requirements 
for recordkeeping and the applicability of maximum allowable operating 
pressure (MAOP) reconfirmation. The amendments are intended to clarify 
the regulatory requirements identified in the Petition without 
adversely affecting safety.

DATES: The effective date of this rule is July 1, 2020.

FOR FURTHER INFORMATION CONTACT: For technical questions, contact Steve 
Nanney, Project Manager, by telephone at 713-272-2855 or by email at 
[email protected]. For general information, contact Robert Jagger, 
Senior Transportation Specialist, by telephone at 202-366-4361 or by 
email at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On October 1, 2019, (84 FR 52180) PHMSA published a final rule 
titled, ``Safety of Gas Transmission Pipelines: MAOP Reconfirmation, 
Expansion of Assessment Requirements, and Other Related Amendments,'' 
(Gas Transmission Final Rule) that amended the Pipeline Safety 
Regulations (PSR) at 49 CFR part 192 to improve the safety of onshore 
gas transmission pipelines. The Gas Transmission Final Rule addressed 
integrity management requirements and other requirements.
    The Gas Transmission Final Rule focused on the actions an operator 
must take to reconfirm the maximum allowable operating pressure (MAOP) 
of previously untested natural gas transmission pipelines and pipelines 
lacking certain material or operational records. It also required 
operators to reconfirm the MAOP of those segments and gather any 
necessary material property records they might need to do so, where the 
records needed to substantiate the MAOP are not traceable, verifiable, 
and complete. Examples of the records necessary to confirm MAOP include 
pressure test records or material property records (mechanical 
properties) that verify the MAOP is appropriate for the class location.
    On October 31, 2019, the American Public Gas Association, the 
American Gas Association, the Interstate Natural Gas Association, and 
the American Petroleum Institute (the Associations) submitted a 
Petition for Reconsideration of the Gas Transmission Final Rule in 
accordance with 49 CFR 190.335. In the Petition, the Associations 
requested that PHMSA (1) clarify that the recordkeeping requirement in 
Sec.  192.5(d) only applies to transmission pipelines, and (2) limit 
the applicability of the MAOP reconfirmation requirements in Sec.  
192.624(a)(1) to those pipeline segments that do not have a traceable, 
verifiable, and complete pressure test record under Sec.  
192.619(a)(2). PHMSA granted the Petition and responded with a letter 
dated December 20, 2019, in accordance with 49 CFR 190.337(b).\1\ This 
final rule amends the Gas Transmission Final Rule to implement the 
changes.
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    \1\ PHMSA has placed a copy of the Associations' Petition for 
Reconsideration and PHMSA's response in the Docket for the Gas 
Transmission Final Rule, See Docket No. HYPERLINK ``https://
www.regulations.gov/docket?D=PHMSA-2011-0023'' PHMSA-2011-0023.
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Petition To Clarify the Applicability of the Recordkeeping Requirements 
of Sec.  192.5(d)

    In the Gas Transmission Final Rule published on October 1, 2019, 
PHMSA added Sec.  192.5(d) to require an operator to have and maintain 
records that document the current class location of each pipeline 
segment. In the preamble, PHMSA stated that this recordkeeping 
requirement applies to each operator of a gas transmission pipeline; 
however, PHMSA inadvertently omitted language in the rule's regulatory 
text that would have made clear that the recordkeeping requirements of 
that section applied only to gas transmission pipelines. In their 
Petition, the Associations requested that PHMSA clarify that the 
recordkeeping requirements in Sec.  192.5(d) only apply to gas 
transmission pipelines. This request aligns with the final rule's 
original intent.
    After reviewing the Petition, the language in the Gas Transmission 
Final Rule, and the Pipeline Safety Regulations, PHMSA granted the 
Associations' request to clarify that the recordkeeping requirements in 
Sec.  192.5(d) only apply to gas transmission pipelines. The 
recordkeeping requirements of that section apply to records that 
document current class location determinations and records that 
demonstrate how an operator arrived at such a determination for each 
class location. PHMSA has concluded that the change requested in the 
Petition is appropriate, is consistent with the original intent of the 
final rule, and does not compromise safety.

Petition To Limit the Applicability of Sec.  192.624(a)(1)

    In the Gas Transmission Final Rule, PHMSA defined a set of pipeline 
segments for which operators must reconfirm the MAOP. Specifically, 
Sec.  192.624(a)(1) requires operators of certain gas transmission 
pipelines to reconfirm MAOP if, among other things, the ``records 
necessary to establish the MAOP in accordance with Sec.  192.619(a) . . 
. are not traceable, verifiable, and complete'' (TVC). In the Petition, 
the Associations requested that PHMSA revise Sec.  192.624(a)(1) to 
clarify that it does not apply where an operator already has records 
necessary to establish MAOP under Sec.  192.619(a)(2) (i.e., pressure 
test records). The Associations stated that ``without the specific 
reference to Sec.  192.619(a)(2), it is unclear whether an operator 
must reconfirm MAOP when a pipeline segment already has a TVC pressure 
test record but is missing other records under Sec.  192.619(a)(1) or 
(a)(3).'' The Associations noted that this revision would align with a 
corresponding Gas Pipeline Advisory Committee recommendation \2\ and 
confirm that

[[Page 40133]]

Sec.  192.624(a)(1) does not require operators to reconfirm the MAOP of 
pipeline segments if they have TVC pressure test records.
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    \2\ Gas Pipeline Advisory Committee Meeting Final Voting Slides 
at 1 (Mar. 26-28, 2018). The slide presentation is available in the 
docket, PHMSA-2011-0023, which can be accessed at 
www.regulations.gov.
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    PHMSA granted the Associations' Petition to limit the applicability 
of the MAOP reconfirmation requirements of Sec.  192.624(a)(1) to those 
pipeline segments that do not have TVC pressure test records under 
Sec.  192.619(a)(2).\3\ PHMSA has determined that the Associations' 
specific request to limit the applicability of these MAOP 
reconfirmation requirements in Sec.  192.624(a)(1) will not compromise 
safety because the availablility of TVC pressure test records under 
Sec.  192.619(a)(2) allows an operator to establish the MAOP for the 
pipeline segment without the need for reconfirmation. Further, this 
change is consistent with recommendations from the Gas Pipeline 
Advisory Committee and the language proposed in the Notice of Proposed 
Rulemaking (HYPERLINK ``https://www.federalregister.gov/citation/81-FR-
20722'' 81 FR 20722; April 8, 2016).
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    \3\ PHMSA granted the Associations' Petition in a letter dated 
Dec. 20, 2019. The letters responding to Associations are available 
in the docket, PHMSA-2011-0023, which can be accessed at 
www.regulations.gov.
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    As already specified in the Gas Transmission Rule, if operators are 
missing any material properties during anomaly evaluations and repairs, 
operators must confirm those material properties under Sec. Sec.  
192.607 and 192.712(e) through (g).\4\ Any pipeline segment that is 
missing records necessary to comply with other aspects of the PSR must 
meet all applicable provisions of part 192 for any future MAOP 
increases. An increase in MAOP must be based upon the applicable 
requirements for design; pressure testing; highest actual operating 
pressure (for any segment not re-pressure tested); and the maximum safe 
operating pressure based upon the pipeline history as required by Sec.  
192.619(a)(1) through (4). In addition, any increase in MAOP must be 
based upon the class location requirements in Sec. Sec.  192.5 and 
192.611 for MAOP determination.
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    \4\ PHMSA may provide more clarification on these requirements 
in the upcoming rulemaking, ``Pipeline Safety: Safety of Gas 
Transmission Pipelines: Repair Criteria, Integrity Management 
Improvements, Cathodic Protection, Management of Change, and Other 
Related Amendments.'' RIN 2137-AE72.
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II. Regulatory Analyses and Notices

Statutory/Legal Authority

    These amendments are made pursuant to the Federal Pipeline Safety 
Statutes (49 U.S.C. 60101 et seq.). Section 60102 authorizes the 
Secretary of Transportation to issue regulations governing design, 
installation, inspection, emergency plans and procedures, testing, 
construction, extension, operation, replacement, and maintenance of 
pipeline facilities, as delegated to the PHMSA Administrator under 49 
CFR 1.97.

Executive Orders 12866 and 13771, and DOT Regulatory Policies and 
Procedures

    Executive Order 12866 (``Regulatory Planning and Review'' \5\) 
requires agencies to regulate in the ``most cost-effective manner,'' to 
make a ``reasoned determination that the benefits of the intended 
regulation justify its costs,'' and to develop regulations that 
``impose the least burden on society.'' Similarly, DOT regulations 
require that regulations issued by PHMSA and other DOT Operating 
Administrations ``should be designed to minimize burdens and reduce 
barriers to market entry whenever possible, consistent with the 
effective promotion of safety'' and should generally ``not be issued 
unless their benefits are expected to exceed their costs.'' Sec.  
5.5(f)-(g). The Gas Transmission Final Rule was considered a 
significant regulatory action under Executive Order 12866 and Executive 
Order 13771 \6\ (``Reducing Regulation and Controlling Regulatory 
Costs''). It was also considered significant under the Regulatory 
Policies and Procedures of the DOT at 49 CFR part 5 because of 
substantial congressional, State, industry, and public interest in 
pipeline safety. Therefore, the Office of Management and Budget (OMB) 
reviewed the Gas Transmission Final Rule in accordance with Executive 
Order 12866, and determined the rule was consistent with Executive 
Order 12866 requirements and 49 U.S.C. 60102(b)(5)-(6). PHMSA published 
a final regulatory impact analysis for the Gas Transmission Final Rule, 
which is available in the rulemaking docket.
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    \5\ 58 FR 51735 (Oct. 4, 1993).
    \6\ 82 FR 9339 (Feb. 24, 2017).
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    This document amends the Gas Transmission Final Rule and imposes no 
incremental changes or costs to the regulated industry, except that the 
amendments may provide relief to the extent the changes reduce 
confusion by improving the clarity of the regulations. Therefore, this 
is a non-significant action and was not reviewed by OMB.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, as amended by the Small Business 
Regulatory Flexibility Fairness Act of 1996 (5 U.S.C. 601 et seq.) 
requires Federal regulatory agencies to prepare a Final Regulatory 
Flexibility Analysis (FRFA) for any final rule subject to notice-and-
comment rulemaking under the Administrative Procedure Act (5 U.S.C. 
553), unless the agency head certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
PHMSA prepared a FRFA for the Gas Transmission Final Rule, which is 
available in the docket for this rulemaking. These amendments to the 
Gas Transmission Final Rule have no substantial effect on that 
analysis.

Paperwork Reduction Act

    These amendments impose no new requirements for the recordkeeping 
and reporting contained in the October 1, 2019, Gas Transmission Final 
Rule.

Unfunded Mandates Reform Act of 1995

    These amendments to the Gas Transmission Final Rule do not impose 
unfunded mandates under the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1501 et seq.; UMRA). They do not impose enforceable duties on 
State, local, or Tribal governments or on the private sector of $100 
million or more, adjusted for inflation, in any one year and therefore 
do not have implications under Section 202 of the UMRA of 1995.
    PHMSA prepared an analysis of the UMRA considerations in the final 
regulatory impact analysis for the Gas Transmission Final Rule, which 
is available in the docket for the rulemaking. These amendments to the 
Gas Transmission Final Rule have no substantial effect on that 
analysis. Therefore, PHMSA determines that these amendments imposes no 
unfunded mandates.

National Environmental Policy Act

    PHMSA had analyzed the Gas Transmission Final Rule in accordance 
with the National Environmental Policy Act (NEPA) (42 U.S.C. 4321 et 
seq.) and implementing Council on Environmental Quality regulations (40 
CFR part 1500) and DOT implementing policies (DOT Order 5610.1C, 
``Procedures for Considering Environmental Impacts'') and determined 
the final rule would not significantly affect the quality of the human 
environment. PHMSA prepared an analysis of the NEPA considerations in 
an Environmental Analysis for Gas Transmission Final Rule, which is 
available in the docket for the rulemaking. The amendments to the Gas 
Transmission Final Rule implemented by this document have no 
substantial effect on the NEPA analysis.

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Privacy Act Statement

    In accordance with 5 U.S.C. 553(c), DOT solicits comments from the 
public to inform its rulemaking process. DOT posts these comments, 
without edit, including any personal information the commenter 
provides, to www.regulations.gov, as described in the system of records 
notice (DOT/ALL-14 FDMS), which can be reviewed at www.dot.gov/privacy.

Executive Order 13132

    PHMSA analyzed these amendments to the Gas Transmission Final Rule 
in accordance with Executive Order 13132 (``Federalism'' \7\). The 
Federal Pipeline Safety Statute, specifically 49 U.S.C. 60104(c), 
prohibit State safety regulation of interstate pipelines. Under the 
pipeline safety laws, States have the ability to augment pipeline 
safety requirements for intrastate pipelines regulated by PHMSA, but 
may not approve safety requirements less stringent than those required 
by Federal law. A State may also regulate an intrastate pipeline 
facility PHMSA does not regulate. It is these statutory provisions, not 
the rule, that govern preemption of State law.
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    \7\ 64 FR 43255 (Aug. 10, 1999).
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    PHMSA analyzed the Gas Transmission Final Rule and determined that 
the consultation and funding requirements of Executive Order 13132 do 
not apply. These amendments to Gas Transmission Final Rule have no 
substantial effect on that analysis. These amendments to the Gas 
Transmission Final Rule do 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. These amendments do not impose any 
substantial direct compliance costs on State and local governments.

Executive Order 13211

    PHMSA analyzed the Gas Transmission Final Rule and determined that 
the requirements of Executive Order 13211 (``Actions Concerning 
Regulations that Significantly Affect Energy Supply, Distribution, or 
Use'') \8\ do not apply. These amendments to the Gas Transmission Final 
Rule are not a ``significant energy action'' under Executive Order 
13211. These amendments are not likely to have a significant adverse 
effect on supply, distribution, or energy use. Further, OMB has not 
designated these amendments as a significant energy action.
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    \8\ 66 FR 28355 (May 22, 2001).
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Executive Order 13175

    This document was analyzed in accordance with the principles and 
criteria contained in Executive Order 13175 (``Consultation and 
Coordination with Indian Tribal Governments'') \9\ and DOT Order 
5301.1, ``Department of Transportation Policies, Programs, and 
Procedures Affecting American Indians, Alaska Natives, and Tribes.'' 
Executive Order 13175 and DOT Order 5301.1 require DOT Operating 
Administrations to assure meaningful and timely input from Indian 
Tribal government representatives in the development of rules that 
significantly or uniquely affect Tribal communities by imposing 
``substantial direct compliance costs'' or ``substantial direct 
effects'' on such communities or the relationship and distribution of 
power between the Federal Government and Indian Tribes. The amendments 
within this document neither impose direct compliance costs on Tribal 
communities, nor have a substantial direct effect on those communities. 
Therefore, the funding and consultation requirements of Executive Order 
13175 and DOT Order 5301.1 do not apply.
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    \9\ 65 FR 67249 (Nov. 9, 2000).
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Executive Order 13609 and International Trade Analysis

    Under Executive Order 13609 (``Promoting International Regulatory 
Cooperation'' \10\), agencies must consider whether the impacts 
associated with significant variations between domestic and 
international regulatory approaches are unnecessary or may impair the 
ability of American business to export and compete internationally. In 
meeting shared challenges involving health, safety, labor, security, 
environmental, and other issues, international regulatory cooperation 
can identify approaches that are at least as protective as those that 
are or would be adopted in the absence of such cooperation. 
International regulatory cooperation can also reduce, eliminate, or 
prevent unnecessary differences in regulatory requirements. The 
amendments in this document do not impact international trade.
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    \10\ 77 FR 26413 (Nov. 9, 2000).
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Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN contained in the heading of 
this document can be used to cross-reference this action with the 
Unified Agenda.

List of Subjects in 49 CFR Part 192

    Incorporation by reference, Integrity assessments, Material 
properties verification, MAOP reconfirmation, Pipeline safety, 
Predicted failure pressure, Recordkeeping, Risk assessment, Safety 
devices.

    In consideration of the foregoing, PHMSA is amending 49 CFR part 
192 as follows:

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

0
1. The authority citation for part 192 continues to read as follows:

    Authority: 30 U.S.C. 185(w)(3), 49 U.S.C. 5103, 60101 et seq., 
and 49 CFR 197.


0
2. In Sec.  192.5, as amended October 1, 2019, at 84 FR 52243 and 
effective July 1, 2020, paragraph (d) is revised to read as follows:


Sec.  192.5  Class locations.

* * * * *
    (d) An operator must have records that document the current class 
location of each gas transmission pipeline segment and that demonstrate 
how the operator determined each current class location in accordance 
with this section.

0
3. In Sec.  192.624, as amended October 1, 2019, at 84 FR 52247 and 
effective July 1, 2020, paragraph (a)(1) introductory text is revised 
to read as follows:


Sec.  192.624  Maximum allowable operating pressure reconfirmation: 
Onshore steel transmission pipelines.

    (a) * * *
    (1) Records necessary to establish the MAOP in accordance with 
Sec.  192.619(a)(2), including records required by Sec.  192.517(a), 
are not traceable, verifiable, and complete and the pipeline is located 
in one of the following locations:
* * * * *

    Issued in Washington, DC, on June 29, 2020, under authority 
delegated in 49 CFR part 1.97.
Howard R. Elliott,
Administrator.
[FR Doc. 2020-14403 Filed 7-1-20; 11:15 am]
BILLING CODE 4910-60-P