United States: PHMSA Proposes Rule Revisions For Hazardous Liquid Pipelines

The Pipeline and Hazardous Materials Safety Administration (PHMSA) is proposing amendments to certain pipeline safety regulations set forth in 49 CFR parts 190, 194 and 195 addressing the safety of hazardous liquid pipelines.¹ The proposed amendments would revise the requirements for facility response plans, revise the reporting thresholds for accidents and repeal, replace or modify other specific regulations. Any party seeking to submit comments to PHMSA on these proposed amendments must do so by June 15, 2020.

Overview of Proposed Changes

Part 190

Part 190 specifies pipeline inspection procedures. PHMSA proposes amending the requirements for producing records during an inspection or investigation to account for technological innovation. Under the proposed rule revision, operators may submit records electronically, provided that the method used to submit information: 1) allows PHMSA to download and print all records on the portal from any U.S.-based internet access point without redacting or altering the document (e.g., watermarking, date and time-stamping with username/access date information); 2) does not remove or restrict document functionality available to the operator for each document, e.g., text or properties search capabilities; and 3) provides PHMSA with a point of contact responsible for addressing reported problems with the system or any record.

PHMSA also proposes to provide operators the option, but not the obligation, to submit a redacted copy of records containing confidential commercial information submitted for purposes other than rulemaking or special permit proceedings, as such proceedings involve documents that must be placed in a public docket. PHMSA also proposes to clarify that marking records ''confidential'' under a general claim of confidentiality is not sufficient to claim confidential commercial information and would require operators to provide a specific explanation of the basis for any confidentiality claim.

Part 194

Part 194 contains the requirements for preparing and submitting oil spill response plans. PHMSA is proposing amendments that would streamline the oil spill response plan requirements and clarify or eliminate requirements that may be confusing or redundant. PHMSA would remove a list of exemptions incorrectly defined as ''exceptions'' in § 194.101. Section 194.101(b)(1) lists ''exceptions'' that are not applicable if the pipeline facility could cause ''substantial'' or ''significant and substantial harm'' to navigable waters or adjoining shorelines. Because part 194 applies only to such pipeline facilities, these are not really exceptions. PHMSA is proposing to move the ''exception'' currently listed in § 194.101(b)(2)(ii) to § 194.3(b). This exemption applies to pipelines 6 5?8 inches or less in diameter, 10 miles or less in length and where the operator determines it is unlikely that the worst-case discharge (WCD) from any point on the line section would adversely affect, within four hours after the initiation of the discharge, any navigable waters, public drinking water intake or environmentally sensitive areas. Because of the lower risk presented by these low-capacity pipelines, PHMSA proposes to explicitly recognize the possibility that these pipelines may not require a plan.

PHMSA is also proposing provisions to make it easier for an operator to prepare and submit response plans. These changes would include: 1) allowing operators to use spill modeling for estimating WCDs; 2) requiring operators to submit plans electronically; 3) allowing operators to submit U.S. Department of Transportation (DOT) annexes to existing response plans prepared for state regulators; and 4) clarifying that an operator must submit plans before putting a pipeline facility in service, rather than prior to beginning construction.

Part 195

Part 195 addresses the safety and reporting requirements for pipelines transporting hazardous liquids or carbon dioxide. PHMSA is proposing adjusting the property damage reporting threshold from $50,000 to $118,000. In part 195, property damage includes the cost of cleanup and recovery, value of lost product and damage to the property of the operator or others (or both). Operators would still be required to report any accident that caused a death or a personal injury requiring hospitalization; that resulted in either a fire or explosion not intentionally set by the operator; that resulted in pollution of any stream, river, lake, reservoir or other similar body of water; or that was otherwise significant in the judgment of the operator. PHMSA is proposing to revise § 195.573(c) to clarify that operators may monitor rectifier stations remotely. Rectifiers direct an electrical current on a pipeline to prevent external corrosion. It is now possible for operators to monitor these electrical systems remotely, and PHMSA is proposing to allow for the use of remote monitoring technologies.

PHMSA also proposes revised guidance for considering spills in fields and is moving details for considering the physical support of pipelines, maximum operating pressure (MOP) exceedances and natural force damage caused by earth movement or seismicity from the guidance for identifying segments that could-affect High Consequence Areas to the guidance on identifying threats.

Next Steps

For assistance in preparing comments or for more information on how the proposed PHMSA amendments could affect your company or a specific project, contact the author or another member of Holland & Knight's Pipelines Team or Environmental Team.

Footnotes

1.Hazardous liquids pipelines are regulated under 49 CFR part 195 and are defined in 49 CFR § 195.1.

Article originally published on 4 May 2020

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