PHMSA`s Proposals: An Outsider`s Perspective

PHMSA’s Proposals:
An Outsider’s Perspective
Pipeliners Association of Houston
November 4, 2013
Client Services
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General Outline
• New Secretary of
• Sequestration
• Gas Transmission NPRM
• New Central Region Director
• Public Awareness Results
• New Penalties Final Rule
• IVP (next page)
Integrity Verification Outline
IVP Meeting Info
Advisory Bulletins
NTSB Recommendations
Longhorn FONSI
Recommended Presentations
Draft IVP Chart
Personal Observations
New Secretary of Transportation
Charlotte Mayor Anthony Foxx was sworn in as the
nation’s 17th Secretary of Transportation Tuesday,
July 2, 2013.
PHMSA’s “essential functions” (e.g., operator
inspections, accident investigations) continued.
Discretionary activities and travel was limited.
Inspection of state pipeline safety programs is
apparently not an “essential function.”
Gas Transmission NPRM
ANPRM Published 8/25/2011
Major Topics under consideration:
• Expand assessments beyond HCAs
• Repair criteria *
• Assessment methods * **
• Corrosion control
• Expand gas gathering reporting requirements
• Management of change
• Seismicity requirements *
• MAOP exceedance reporting *
(*Congressional Mandate **NTSB Recommendation)
Class Location ANPRM
Docket ID PHMSA–2013–0161 (8/1/13)
Comment Period ends 11/1/13
More Classes or No Classes!!
Affects Integrity Management
New RD - Central Region
Dave Barrett stepped down and, effective June 21,
2013, Linda Daugherty assumed those
Public Awareness Results
PHMSA held a Workshop June 19 -20, 2013 in
Richardson TX
I have a whole separate presentation on PAP.
Very few operators escaped unscathed.
Integrity Verification Process
On August 7, 2013, PHMSA sponsored a public
meeting in Arlington, Virginia to discuss a proposed
“Integrity Verification Process” (IVP) to help
address several mandates set forth in Section 23,
Maximum Allowable Operating Pressure, of the
Pipeline Safety, Regulatory Certainty, and Job
Creation Act of 2011 as well as several NTSB
Meeting Web Site & Docket #
Web Site:
Docket Number: PHMSA-2013-0119
Access at
Advisory Bulletins
Two Advisory Bulletins regarding MAOP/MOP
ADB 11-01, 1/10/11
ADB 2102-06, 5/7/12
One Advisory Bulletin relating to Integrity
ADB 2012-10, 12/5/12
Advisory Bulletins
The first two are focused on the data required to
document MAOP/MOP – traceable, verifiable and
complete. Nothing new – same rules as always –
but not everyone has been paying attention.
The third is even more telling.
ADB 2012-10
“[PHMSA] inspectors will check to confirm
that information and data gaps are
aggressively being addressed and that
assumptions are appropriately based on
location-specific data.”
ADB 2012-10
“Operators should also be diligently working
to eliminate information and data gaps
throughout their entire integrity management
Translation: Operators need data on every
joint of pipe and every valve, flange, fitting or
other appurtenance to the pipeline that could
affect integrity or affect MAOP.
NTSB Recommendations
San Bruno, California – 9/9/10 – 39
PHMSA (16)
PG&E (12)
CPUC (5)
U.S. Secretary of Transportation (4)
INGAA and AGA (1)
Governor of California (1)
NTSB Recommendations
NTSB P-11-14 “. . . delete the
grandfather clause and require that all
gas transmission pipelines
constructed before 1970 be subjected
to a hydrostatic pressure test that
incorporates a spike test.”
NTSB Recommendations
NTSB P-11-15 (Seam Stability)- “. . .
manufacturing- and constructionrelated defects can only be considered
stable if a gas pipeline has been
subjected to a postconstruction
hydrostatic pressure test of at least
1.25 times the maximum allowable
operating pressure.”
NTSB Recommendations
NTSB P-11-17 (Piggability) – “Require
. . . all natural gas transmission
pipelines be configured so as to
accommodate in-line inspection tools,
with priority given to older pipelines.”
• 119,026 Total Miles Not Piggable
• ILI tools not commercially available for most
very small lines (~ 22,018 miles of GT ≤ 4”
• Motivate operators to upgrade lines to the
maximum extent practicable
The Longhorn EA
• PHMSA announced the availability of the
Final Environmental Assessment (EA)
and Finding of No Significant Impact
(FONSI) for the Longhorn Pipeline
Reversal Project (Project) January 2,
2013 (78 FR 146).
• The FONSI is available online at in docket number
The Longhorn EA
• The Material Documentation Plan
(Section, page 9-40 to 9-44) is
particularly significant in that it sets
forth the procedures and assessments
required by PHMSA where historic
documentation is incomplete (i.e.,
historic information is insufficient to
adequately demonstrate Maximum
Operating Pressure 49 CFR §195.406)
The Longhorn EA
• The Longhorn EA is much more than just
an Advisory Bulletin.
• While Longhorn is a Part 195 system, the
underlying rationale can be applied to
Part 192 systems.
• The rationale is not yet reflected in a
rulemaking, but is a strong indicator.
Recommended Presentations
All of the presentations are available on the web site (as is
the video recording of the meeting). There are, however, four
that are “must see”:
1. Material_Strength_Decision_Chart_-_07-09-2013.pdf
2. Blaine_Keener.pdf (Contains an analysis of the CY 2012
GT Annual Report submissions)
3. Steve_Nanney.pdf (Explains the Material Strength
Decision Chart)
4. 2012_GT_Annual_Key_Data_Points_2013-07-15.pdf (the
data analyzed by Blaine Keener)
Personal Observations
1. The mileage reported with incomplete records
was, in my opinion, remarkably low (only 5401
miles out of a total of almost 307,000).
2. The numbers are changing because
supplemental reports are being filed and it
appears obvious that some operators did not
report in the fashion that PHMSA expected.
3. Very high level discussion – what is available
now, what else is needed, and how can it be
collected and analyzed.
Personal Observations
3. NTSB does not like the grandfather clause and
eventually it will be removed from the code (at
least in its current form). PHMSA emphasized
that 192.619(c) IS the grandfather clause and that
all four portions of 192.619(a) must be available
in order to identify the lowest of the four as the
MAOP for a segment if the segment is not
Personal Observations
4. The NTSB likes “Spike Tests” and it is likely that
PHMSA will eventually publish criteria for such
tests (probably based on TTO Number 6, Spike
Hydrostatic Test Evaluation, July 2004, Baker &
(or e-mail me if you want a copy)
Personal Observations
5. Concern that this initiative (the Draft IVP Chart) is
too complex was voiced. My guess is that
PHMSA will be reluctant to break this down into
multiple rulemakings.
6. The current initiative does NOT include gas
distribution, gas gathering or hazardous liquid
lines. That said, if it works for gas transmission,
it will almost certainly carry over in some form.
Personal Observations
7. A risk-based approach similar to that used in
Appendix B to Part 195 was mentioned as a
possible approach but PHMSA did not offer any
further comment (the regulatory deadlines found
in Appendix B have expired but it appears that
PHMSA MAY be receptive, in principle, to such
an approach).
Personal Observations
8. Smart pigging is a preferred approach to
evaluating the condition of the pipeline but the
issue of making existing non-piggable lines
piggable is problematic.
9. Pressure testing will likely be the ultimate trump
card for pre-code lines and for lines which do not
have traceable, verifiable and complete records.
Personal Observations
10.The Docket Number is PHMSA-2013-0119
(accessible at Comments
may be submitted there and all previous
submissions can be reviewed there. There was
no indication as to when the comment period will
11.The regulatory process is still “stuck in amber”
and it may take several years before regulations
become final.
Closing Comments
If you do not have “bulletproof” records
you need to be developing a
plan to address your data gaps and
ways to convince PHMSA that, whatever
else the plan is, it is reasonable in light
of 49 CFR Parts 190 -199.
John Jacobi
[email protected]
(713) 260-4039 (Office)
(832) 712-3098 (Mobile)
Thank YOU!!