U. S. Department of Transportation

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U. S. Department of Transportation
Pipeline and Hazardous Materials Safety
Administration
www.dot.gov
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PIPES Act of 2006 PHMSAsTop 10 Priorities
Arkansas PSCPHMSA TQ UpdateLittle Rock,
ARJune 20, 2007Presented by John A. Jacobi,
P.E.Community Assistance Technical Services
ManagerSouthwest Region

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Outline

• Mission Statements
• List of Top 10 (1)
• Item-by-Item Description (as of 2/20/07)
• The 11th Item
• Bonus Information

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OPS Mission Statement

• To ensure the safe, reliable, and
  environmentally sound operation of the Nations
  pipeline transportation system.

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CATS MissionStatement

• To advance public safety, environmental
  protection and pipeline reliability by
  facilitating clear communications among all
  pipeline stakeholders, including the public, the
  operators and government officials.

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List of Ranked Priorities

1. (25) Gas Integrity Management Reassessment
   Interval
2. (6) Enforcement Transparency
3. (5) Information Grants to Communities
4. (4) Low Stress Pipelines
5. (22) Hazardous Liquids (HL) Internal Corrosion
   Control Regulations

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List of Ranked Priorities(continued)

• Three Items
• (9) Distribution Integrity Management
  Emergency Flow Valves
• (12) Control Room Management
• (19) SCADA Standards
• (16) Executive signature of Integrity
  Management Performance Reports

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List of Ranked Priorities(continued)

1. (21) Leak Detection Technology Study and Report
   to Congress
2. (8) Hazardous Liquid Pipeline Capacity and
   Regulatory Adequacy Study (Market Study)
3. (17) Cost Recovery LNG Design Review
4. (2) State One-Call/Damage Prevention Programs

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1. Gas Integrity Management Reassessment Interval

• Review/comment on GAO report. Send to Congress
  legislative recommendations for implementing
  report conclusions.
• Statutory deadline and stakeholder interest by
  INGAA drive the urgency. We have the authority to
  issue waivers and are prepared to do so, and are
  streamlining the process by bundling waivers by
  topic.
• Draft Prepared goal to finish by end of March

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2. Enforcement Transparency

• Post monthly summary of pipeline enforcement
  actions for the public to include identification
  of operators involved in enforcement actions, the
  types of alleged violations, and any penalties or
  proposed penalties. Also requires mechanism for
  operators to make responsive information
  available to the public.
• Underway. Will use website. Meeting with
  Stakeholders. Will seek public comment.
  Complete by end of 2007.

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3. Information Grants to Communities

• Grants to local communities, including three
  25,000 demonstration grants, to promote local
  community awareness and understanding of pipeline
  safety activities in their area.
• Working on criteria. Pilot in Alaska. Create
  partnerships between operators communities.
  Improve understanding of company performance by
  using well chosen broadbased metrics that are
  transparent and close to real time. No specific
  deadline.

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4. Low Stress Pipelines

• Issue regulations Two Phases (I) High
  Consequence Areas HCAs and (II) non-HCAs
• PHMSAs top regulatory priority. Get protection
  to highest risk areas (HCAs) first, and will
  likely take a phased approach to bringing in the
  rest of the low stress (non-HCA) pipelines. HCA
  lines by end of 2007 no specific schedule for
  remaining lines.

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5. Hazardous Liquids (HL) Internal Corrosion
Control Regulations

• Review adequacy of 49 CFR Part 195 (HL) internal
  corrosion control regulations. Submit report to
  Congress containing results of the review and
  modify regulations if necessary/appropriate
• Complete prior to completing the low stress
  rulemaking - second phase, so that any
  improvements in regulation, for example, cleaning
  and continuous monitoring, are defined prior to
  the final rule on the low stress pipelines
  outside high risk areas. SW Region complete by
  end of 2007.

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6A. Distribution IMP

• Prescribe minimum standards for distribution IMP.
  Require gas distribution pipeline operators to
  develop/follow a written plans to include
  evaluation of systems, identification of threats
  potentially affecting the system, implementation
  of measures to mitigate risks, and ongoing
  performance monitoring.
• Largely based on findings from the DIMP team of
  stakeholders. Proposed rulemaking by end of 2007.

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6A. Excess Flow Valves

• Develop regulations to require gas distribution
  operators to install EFVs in certain
  circumstances and annual reporting on the number
  of installed EFVs.
• The new EFV requirement (PIPES 2006) has
  necessitated changes in previous thinking, but
  the proposed rulemaking should be published this
  summer to take effect about a year later.

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6B. Control Room Management

• Issue regulations requiring operators to
  develop/implement and submit for approval a human
  factors management plan, including a maximum
  limit on hours of service for controllers.

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6B. Control Room Management

• This newly required plan to may be appended to
  the existing Part 192 IMP requirements pipeline
  infrastructure, people and plans and procedures
  are what make up integrity management this
  element is part of the system of Prevention
  through People. PHMSA will have discussions with
  stakeholders on concept soon, as next step.

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6C. SCADA Standards

• Issue standards implementing three NTSB
  recommendations on the operation of Supervisory
  Control and Data Acquisition systems (SCADA),
  including (1) use of graphics on SCADA (2)
  review and audit of alarms on monitoring
  equipment and (3) pipeline controller training.
  
• Will be addressed with 6B. Control Room
  Management, above.

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7. Executive Signature of IMP Reports

• Establish procedures requiring certification of
  pipeline IM performance reports filed by a senior
  executive officer of the company.
• Will be implemented by an Advisory Bulletin.
  Rulemaking not required. Should be done quickly.

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8. Leak Detection Technology Study and Report to
Congress

• Study the effectiveness of leak detection systems
  utilized by operators of hazardous liquid
  pipelines. Provide report to Congress.
• This study will be primarily based on assessment
  of IMP inspections and will include recent
  research findings. Shooting for end of 2007.

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9. Market Study

• Requires PHMSA and DOE to perform periodic
  analyses of hazardous liquid pipeline
  transportation to identify capacity restrictions
  that could cause shortages of petroleum products
  or price disruptions in the event of pipeline
  failures. Report to Congress.
• Meetings with DOE have begun, but this project
  may be delayed until FY08 due to the CR. Finish
  by June 2008.

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10. Cost Recovery- LNG Design Review

• Authorizes recovery of staff costs associated
  with performing a design review for a proposed
  LNG facility project directly from the project
  applicant.
• PHMSA is beginning to look at implementation
  options to collect fees from operators with
  designs of facilities for us to review this year
  and next. No set deadline.

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11. State One-Call/Damage Prevention Programs

• Did not make the Top 10 but nonetheless very
  significant to some stakeholders
• 2 of PIPES requires excavators to
  call-before-you-dig, observe pipeline markings,
  report damage to the operators of pipelines and
  use 911 if there is a leak or fire.
• Most states do not have effective enforcement of
  damage prevention laws

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11. State One-Call/Damage Prevention Programs

• 2(f) of PIPES requires PHMSA to develop and
  issue through rulemaking criteria for
  determining inadequate State enforcement of
  penalties.
• A draft white paper based on CGA Compliance Best
  Practices has been developed and circulated
  internally within PHMSA
• An ad hoc team is rumored to be in the works.
  This team will include many stakeholders. No set
  schedule

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Bonus Information

• The best place to get most recent 49 CFR Parts
  190 199 and 49 CFR Part 40 (Alcohol Drug
  Abuse Regulations) is
• http//ops.dot.gov/training/index.htm
• click on Regulatory Information
• click on the part you want

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Questions ???Thank You!!

• john.jacobi_at_dot.gov
• 281-685-7128 (cell)
• 713-272-2839