80_FR_58822 80 FR 58633 - Pipeline Safety: Miscellaneous Changes to Pipeline Safety Regulations: Response to Petitions for Reconsideration

80 FR 58633 - Pipeline Safety: Miscellaneous Changes to Pipeline Safety Regulations: Response to Petitions for Reconsideration

DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration

Federal Register Volume 80, Issue 189 (September 30, 2015)

Page Range58633-58635
FR Document2015-24763

On March 11, 2015, PHMSA published a final rule amending the pipeline safety regulations to make miscellaneous changes that updated and clarified certain regulatory requirements. These amendments addressed several subject matter areas, including the performance of post-construction inspections, Type B onshore gas gathering line leak surveys, qualifying plastic pipe joiners, ethanol regulation, pipe transportation, offshore pipeline condition report filing, pressure reduction calculations for hazardous liquid pipeline anomalies, and components fabricated by welding. This final rule responds to petitions for reconsideration of the final rule.

Federal Register, Volume 80 Issue 189 (Wednesday, September 30, 2015)
[Federal Register Volume 80, Number 189 (Wednesday, September 30, 2015)]
[Rules and Regulations]
[Pages 58633-58635]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24763]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Part 192

[Docket No. PHMSA-2010-0026; Amdt. Nos. 191-23; 192-120; 195-100]
RIN 2137-AE59


Pipeline Safety: Miscellaneous Changes to Pipeline Safety 
Regulations: Response to Petitions for Reconsideration

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

ACTION: Final rule; response to petitions for reconsideration.

-----------------------------------------------------------------------

SUMMARY: On March 11, 2015, PHMSA published a final rule amending the 
pipeline safety regulations to make miscellaneous changes that updated 
and clarified certain regulatory requirements. These amendments 
addressed several subject matter areas, including the performance of 
post-construction inspections, Type B onshore gas gathering line leak 
surveys, qualifying plastic pipe joiners, ethanol regulation, pipe 
transportation, offshore pipeline condition report filing, pressure 
reduction calculations for hazardous liquid pipeline anomalies, and 
components fabricated by welding. This final rule responds to petitions 
for reconsideration of the final rule.

DATES: The effective date of the amendment to 49 CFR 192.305, published 
at 80 FR 12779, March 11, 2015, is delayed indefinitely. PHMSA will 
publish a document in the Federal Register announcing a new effective 
date.

FOR FURTHER INFORMATION CONTACT: Kay McIver, Transportation Specialist, 
by telephone at 202-366-0113, or by electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    On March 11, 2015, PHMSA published a final rule amending the 
pipeline safety regulations to make miscellaneous changes that update 
and clarify certain regulatory requirements (80 FR 12762). These 
amendments address several subject matter areas, including the 
performance of post-construction inspections, Type B onshore gas 
gathering line leak surveys, qualifying plastic pipe joiners, ethanol 
regulation, pipe transportation, offshore pipeline condition report 
filing, pressure reduction calculations for hazardous liquid pipeline 
anomalies, and components fabricated by welding.

II. Petitions for Reconsideration

    Collectively, PHMSA received four petitions for reconsideration of 
the final rule from the American Public Gas Association (APGA), the 
American Gas Association (AGA), the Interstate Natural Gas Association 
(INGAA), and the National Association of Pipeline Safety 
Representatives (NAPSR). The APGA, the AGA, and NAPSR expressed 
concerns about the provisions of the final rule applicable to 
construction inspection in Sec.  192.305. INGAA and the AGA expressed 
concerns applicable to provisions in the final rule applicable to 
components fabricated by welding.

Components Fabricated by Welding; 49 CFR 192.153 and 192.165(b)(3)

    In the final rule published on March 11, 2015, PHMSA added 
paragraph (e) to Sec.  192.153 requiring that ``a component having a 
design pressure established under paragraph (a) or paragraph (b) of 
this section and subject to the strength testing requirements of Sec.  
192.505(b) must be tested to at least 1.5 times the MAOP.'' PHMSA also 
modified Sec.  192.165(b)(3) to cross-reference this new subsection. In 
the preamble to the final rule, PHMSA noted ``this proposal is not a 
change to the current pressure testing requirements found in Part 192, 
but [is] simply a clarification to ensure a clearer understanding of 
PHMSA's pressure testing requirements for certain ASME BPVC vessels 
located in compressor stations, meter stations and other Class 3 or 
Class 4 locations'' (80 FR 12772, March 11, 2015).
    On April 10, 2015, INGAA and AGA filed separate petitions for 
reconsideration with PHMSA regarding this change (Docket No. PHMSA-
2010-0026). INGAA stated that PHMSA's modifications to these code 
sections were not merely a clarification, but a departure from industry 
and agency understanding and practice, and require additional review. 
Specifically, INGAA claimed that PHMSA changed the acceptable test 
factor for a pressure vessel built under the American Society or 
Mechanical Engineers (ASME) Boiler and Pressure Vessel Code (BPVC) from 
the ASME requirements of 1.3 times the Maximum Allowable Working 
Pressure

[[Page 58634]]

(MAWP) to 1.5 times the Maximum Allowable Operating Pressure (MAOP).
    INGAA and AGA requested that PHMSA reconsider this change due to a 
lack of technical justification and regulatory support, asking PHMSA 
to, at a minimum, conduct a study to validate the future use of 1.5 
times MAOP for ASME pressure vessels and create an exception for ASME 
pressure vessels that were put into operation between July 14, 2004 
(when the 1.3 factor was adopted by ASME) and October 1, 2015 (the 
final rule's effective date).
    After reviewing INGAA's and AGA's petitions for reconsideration, 
the language in the final rule, and the Pipeline Safety Regulations 
(PSR), PHMSA disagrees with the petitioners' claim that the change, as 
written, was a departure from industry and agency understanding. The 
pressure testing requirements in the PSR for pipelines in Class 3 and 4 
areas, as well as facilities located in Class 1 and 2 areas, are 
subject to the requirements of Sec.  192.505(b) and require a pressure 
test equal to a minimum of 1.5 times the MAOP. The testing requirements 
of Sec.  192.505(b), which were not revised in the final rule, state 
that in a Class 1 or Class 2 location, each compressor station, 
regulator station, and measuring station must be tested to at least 
Class 3 location test requirements. PHMSA believes the amendment to 
Sec.  192.153 and the corresponding cross-reference with Sec.  
192.165(b)(3) simply clarify the regulations, is consistent with 
existing agency understanding and practice, and ensures regulated 
parties do not incorrectly use the newer ASME BPVC design factor of 1.3 
for pressure testing in instances where pipelines must be tested at 1.5 
times MAOP.
    Regarding INGAA's request to create an exception for ASME pressure 
vessels put into operation between July 14, 2004, and October 1, 2015, 
from the requirements found at Sec.  192.153(e), PHMSA is considering 
INGAA's request and will be evaluating the potential costs and 
environmental implications to operators to retest the non-compliant 
pressure vessels.

Responsibility To Conduct Construction Inspections; 49 CFR 192.305

    Prior to the issuance of the final rule on March 11, 2015, Sec.  
192.305 stated that ``each transmission pipeline or main must be 
inspected to ensure that it is constructed in accordance with this 
part,'' and Sec.  195.204 stated ``inspection must be provided to 
ensure the installation of pipe or pipeline systems in accordance with 
the requirements of this subpart.'' In the final rule issued on March 
11, 2015, PHMSA amended Sec.  192.305 to specify that a pipeline 
operator must not use operator personnel to perform a required 
inspection if the operator personnel also performed the construction 
task that required inspection. This amendment was based, in part, on a 
petition (Docket No. PHMSA-2010-0026) from the National Association of 
Pipeline Safety Representatives (NAPSR),\1\ which suggested that 
contractors who install transmission lines or mains should be 
prohibited from inspecting their own work for compliance purposes. On 
Wednesday, July 11, 2012, the Gas Pipeline Advisory Committee 
recommended that PHMSA adopt the amendment.
---------------------------------------------------------------------------

    \1\ NAPSR is a non-profit organization of state pipeline safety 
personnel who serve to promote pipeline safety in the United States 
and its territories. Its membership includes the staff manager 
responsible for regulating pipeline safety from each state that is 
certified to do so or conducts inspections under an agreement with 
DOT in lieu of certification.
---------------------------------------------------------------------------

    On April 10, 2015, the APGA petitioned for a clarification, or in 
the alternative, a reconsideration of the final rule. The APGA stated 
that the amendment to Sec.  192.305 has the potential to impose 
significant costs on publicly-owned gas distribution systems with 
little, if any, corresponding safety benefit. The APGA stated that if a 
utility has only one qualified crew that works together to construct 
distribution mains, there would not be anyone working for the utility 
available and qualified to perform the inspection. According to the 
APGA, 585 municipal gas utilities have 5 or fewer employees. The APGA 
went on to say that prohibiting small utilities from having their own 
employees inspect pipeline construction work performed by employees of 
the municipal utility would significantly increase the costs for those 
utilities by requiring small utilities to contract with third parties 
for such inspections. The APGA stated that its concerns would be 
alleviated by a clarification stating a two-man utility crew may 
inspect each other's work and comply with the amendment to Sec.  
192.305.
    On April 10, 2015, the AGA petitioned PHMSA to extend the 
compliance date for the amendments in Sec.  192.305 and Sec.  195.204 
from October 1, 2015, to January 1, 2016. The AGA asked for this 
additional time to allow pipeline operators to modify their 
construction inspection procedures, align associated documentation, and 
ensure proper training is in place for both company employees and 
contractors.
    On July 28, 2015, NAPSR petitioned PHMSA to reconsider the revision 
of Sec.  192.305, as it undermines the 2002 NAPSR CR-1-02 resolution. 
NAPSR asked for a delay in the effective date of the final rule 
relative to Sec.  192.305 until PHMSA has reviewed the rule and worked 
with NAPSR to address its concerns. According to NAPSR, allowing 
contractor personnel to inspect the work performed by their own company 
does not remove the inherent conflict of interest that is present and 
defeats the safety benefits that NAPSR intended. NAPSR stated that its 
original resolution would have prohibited contractors from self-
inspecting their own work. NAPSR noted that, unfortunately, the final 
rule's amendment specifically allows contract personnel to inspect the 
work of their own crews so long as the inspector did not directly 
perform the task being inspected. Additionally, the amendment appears 
to apply to operator construction personnel as well, which was not 
NAPSR's original intent since, in its experience, operator personnel 
have less of an incentive to accept poor-quality work. Further, the 
final rule mistakenly decreases the scope of the inspection by changing 
the inspection requirements to only those found in Subpart G for the 
construction of mains and transmission lines,, rather than in all of 
Part 192 as it was prior to the amendment.
    As stated in the final rule, PHMSA believes that these construction 
inspections are important safety requirements because transmission 
pipelines and distribution mains are usually buried after construction, 
and subsequent examinations of these pipelines often involve a 
difficult excavation process. Upon further examination of the impacts 
of this amendment, in particular the issues raised by the petitioners, 
PHMSA believes that further examination and analysis of this safety 
issue is warranted prior to this change going into effect. Therefore, 
PHMSA is delaying the effective date of the amendment to 49 CFR 192.305 
indefinitely. During this delay, PHMSA will be evaluating the ways 
operators are currently complying with Sec.  192.305, developing 
guidance (based on input from industry and other regulatory bodies) and 
hosting a series of workshops on the guidance. Upon completion of this 
evaluation, PHMSA will determine the efficacy of the amendment and 
decide if any additional amendments to the current regulations are 
warranted and to propose any necessary amendments to Sec.  192.305. 
Please note, the effective date for all the other amendments contained 
in the final rule remains October 1, 2015.

[[Page 58635]]

III. Regulatory Analyses and Notices

Executive Order 12866, Executive Order 13563, and DOT Regulatory 
Policies and Procedures

    This final rule is a non-significant regulatory action under 
section 3(f) of Executive Order 12866 (58 FR 51735) and therefore was 
not reviewed by the Office of Management and Budget. This final rule is 
not significant under the Regulatory Policies and Procedures of the 
Department of Transportation (44 FR 11034).
    This final rule will not impose increased compliance costs on the 
regulated industry. The amendments to the March 11, 2015 final rule 
provide regulatory relief to pipeline operators involved in 
construction inspection and do not alter the cost benefit analysis and 
conclusions.

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), PHMSA 
must consider whether rulemaking actions would have a significant 
economic impact on a substantial number of small entities. This final 
rule will not impose increased compliance costs on the regulated 
industry. The delay in the effective date to Sec.  192.305 does not 
alter our original certification that the March 11, 2015 final rule 
does not have a significant impact on a substantial number of small 
entities. Therefore, I certify under Section 605 of the Regulatory 
Flexibility Act (5 U.S.C. 605) that this final rule will not have a 
significant economic impact on a substantial number of small entities.

Paperwork Reduction Act

    This final rule imposes no new requirements for recordkeeping and 
reporting.

Unfunded Mandates Reform Act of 1995

    This final rule does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It would not result in costs of 
$100 million, adjusted for inflation, or more in any one year to either 
State, local, or tribal governments, in the aggregate, or to the 
private sector, and is the least burdensome alternative that achieves 
the objective of the final rule.

National Environmental Policy Act

    The National Environmental Policy Act (42 U.S.C. 4321-4375) 
requires that Federal agencies analyze final actions to determine 
whether those actions will have a significant impact on the human 
environment. The Council on Environmental Quality regulations requires 
Federal agencies to conduct an environmental review considering (1) the 
need for the final action, (2) alternatives to the final action, (3) 
probable environmental impacts of the final action and alternatives, 
and (4) the agencies and persons consulted during the consideration 
process. 40 CFR 1508.9(b).
    The amendment adopted in this final rule will not impose increased 
compliance costs on the regulated industry or have any measureable 
effect on our original assessment. The amendments to the March 11, 
2015, final rule provide regulatory relief to pipeline operators 
involved in construction inspection. Overall, this final rule will 
reduce the compliance burden without compromising pipeline safety. 
Therefore, PHMSA has determined that this final rule will not have a 
significant impact on the human environment.

Privacy Act Statement

    Anyone may search the electronic form of all comments received for 
any of our dockets. You may review DOT's complete Privacy Act Statement 
published in the Federal Register on April 11, 2000 (70 FR 19477).

Executive Order 13132

    PHMSA has analyzed this final rule according to Executive Order 
13132 (``Federalism''). This final rule does 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. This final 
rule does not impose substantial direct compliance costs on State and 
local governments. This final rule does not preempt State law for 
intrastate pipelines. Therefore, the consultation and funding 
requirements of Executive Order 13132 do not apply.

Executive Order 13211

    This final rule is not a ``significant energy action'' under 
Executive Order 13211 (Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use). It is not 
likely to have a significant adverse effect on supply, distribution, or 
energy use. Further, the Office of Information and Regulatory Affairs 
has not designated this final rule as a significant energy action.
    The effective date for the amendment revising 49 CFR 192.305, 
published March 11, 2015, at 80 FR 12779, is delayed indefinitely.

    Issued in Washington, DC on September 25, 2015, under authority 
delegated in 49 CFR Part 1.97.
Stacy Cummings,
Interim Executive Director.
[FR Doc. 2015-24763 Filed 9-29-15; 8:45 am]
 BILLING CODE P



                                                             Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Rules and Regulations                                          58633

                                                List of Subjects in 48 CFR Part 232                     removing ‘‘FAR 32.617(a)(2)’’ and                     including the performance of post-
                                                                                                        adding ‘‘FAR 32.611(a)(2)’’ in its place.             construction inspections, Type B
                                                    Government procurement.
                                                                                                        [FR Doc. 2015–24786 Filed 9–29–15; 8:45 am]           onshore gas gathering line leak surveys,
                                                Jennifer L. Hawes,                                      BILLING CODE 5001–06–P
                                                                                                                                                              qualifying plastic pipe joiners, ethanol
                                                Editor, Defense Acquisition Regulations                                                                       regulation, pipe transportation, offshore
                                                System.                                                                                                       pipeline condition report filing,
                                                                                                                                                              pressure reduction calculations for
                                                  Therefore, 48 CFR part 232 is                         DEPARTMENT OF TRANSPORTATION
                                                                                                                                                              hazardous liquid pipeline anomalies,
                                                amended as follows:
                                                                                                        Pipeline and Hazardous Materials                      and components fabricated by welding.
                                                PART 232—CONTRACT FINANCING                             Safety Administration                                 II. Petitions for Reconsideration
                                                ■ 1. The authority citation for 48 CFR                  49 CFR Part 192                                          Collectively, PHMSA received four
                                                part 232 continues to read as follows:                                                                        petitions for reconsideration of the final
                                                                                                        [Docket No. PHMSA–2010–0026; Amdt. Nos.               rule from the American Public Gas
                                                  Authority: 41 U.S.C. 1303 and 48 CFR                  191–23; 192–120; 195–100]
                                                chapter 1.                                                                                                    Association (APGA), the American Gas
                                                                                                        RIN 2137–AE59                                         Association (AGA), the Interstate
                                                232.605    [Redesignated as 232.602]                                                                          Natural Gas Association (INGAA), and
                                                                                                        Pipeline Safety: Miscellaneous                        the National Association of Pipeline
                                                ■ 2. Redesignate section 232.605 as                     Changes to Pipeline Safety                            Safety Representatives (NAPSR). The
                                                232.602.                                                Regulations: Response to Petitions for                APGA, the AGA, and NAPSR expressed
                                                ■ 3. In the newly redesignated section                  Reconsideration                                       concerns about the provisions of the
                                                232.602, revise the heading to read as                                                                        final rule applicable to construction
                                                follows:                                                AGENCY:  Pipeline and Hazardous
                                                                                                                                                              inspection in § 192.305. INGAA and the
                                                                                                        Materials Safety Administration
                                                232.602    Responsibilities.                                                                                  AGA expressed concerns applicable to
                                                                                                        (PHMSA), Department of Transportation
                                                *      *     *       *      *                                                                                 provisions in the final rule applicable to
                                                                                                        (DOT).
                                                                                                                                                              components fabricated by welding.
                                                232.606    [Redesignated as 232.603]                    ACTION: Final rule; response to petitions
                                                                                                        for reconsideration.                                  Components Fabricated by Welding; 49
                                                ■ 4. Redesignate section 232.606 as                                                                           CFR 192.153 and 192.165(b)(3)
                                                232.603.                                                SUMMARY:   On March 11, 2015, PHMSA
                                                                                                        published a final rule amending the                      In the final rule published on March
                                                ■ 5. Revise the newly redesignated
                                                                                                        pipeline safety regulations to make                   11, 2015, PHMSA added paragraph (e)
                                                section 232.603 to read as follows:                                                                           to § 192.153 requiring that ‘‘a
                                                                                                        miscellaneous changes that updated and
                                                232.603    Debt determination.                          clarified certain regulatory                          component having a design pressure
                                                                                                        requirements. These amendments                        established under paragraph (a) or
                                                  When transferring a case to the
                                                                                                        addressed several subject matter areas,               paragraph (b) of this section and subject
                                                contract financing office, follow the
                                                                                                        including the performance of post-                    to the strength testing requirements of
                                                procedures at PGI 232.603.
                                                                                                        construction inspections, Type B                      § 192.505(b) must be tested to at least
                                                232.610    [Redesignated as 232.604]                    onshore gas gathering line leak surveys,              1.5 times the MAOP.’’ PHMSA also
                                                                                                        qualifying plastic pipe joiners, ethanol              modified § 192.165(b)(3) to cross-
                                                ■ 6. Redesignate section 232.610 as                                                                           reference this new subsection. In the
                                                232.604.                                                regulation, pipe transportation, offshore
                                                                                                        pipeline condition report filing,                     preamble to the final rule, PHMSA
                                                ■ 7. Revise the newly redesignated                                                                            noted ‘‘this proposal is not a change to
                                                                                                        pressure reduction calculations for
                                                section 232.604 to read as follows:                                                                           the current pressure testing
                                                                                                        hazardous liquid pipeline anomalies,
                                                                                                        and components fabricated by welding.                 requirements found in Part 192, but [is]
                                                232.604    Demand for payment.
                                                                                                        This final rule responds to petitions for             simply a clarification to ensure a clearer
                                                   When issuing a demand for payment                                                                          understanding of PHMSA’s pressure
                                                of a contract debt, follow the procedures               reconsideration of the final rule.
                                                                                                                                                              testing requirements for certain ASME
                                                at PGI 232.604.                                         DATES: The effective date of the                      BPVC vessels located in compressor
                                                                                                        amendment to 49 CFR 192.305,                          stations, meter stations and other Class
                                                232.616    [Redesignated as 232.610]                    published at 80 FR 12779, March 11,                   3 or Class 4 locations’’ (80 FR 12772,
                                                ■ 8. Redesignate section 232.616 as                     2015, is delayed indefinitely. PHMSA                  March 11, 2015).
                                                232.610.                                                will publish a document in the Federal
                                                                                                                                                                 On April 10, 2015, INGAA and AGA
                                                                                                        Register announcing a new effective
                                                ■ 9. Revise the newly redesignated                                                                            filed separate petitions for
                                                                                                        date.
                                                section 232.610 to read as follows:                                                                           reconsideration with PHMSA regarding
                                                                                                        FOR FURTHER INFORMATION CONTACT:    Kay               this change (Docket No. PHMSA–2010–
                                                232.610    Compromising debts.                          McIver, Transportation Specialist, by                 0026). INGAA stated that PHMSA’s
                                                   Only the department/agency contract                  telephone at 202–366–0113, or by                      modifications to these code sections
                                                financing offices (see PGI 232.070(c)) are              electronic mail at kay.mciver@dot.gov.                were not merely a clarification, but a
                                                authorized to compromise debts covered                  SUPPLEMENTARY INFORMATION:                            departure from industry and agency
                                                by this subpart.                                                                                              understanding and practice, and require
                                                                                                        I. Background                                         additional review. Specifically, INGAA
mstockstill on DSK4VPTVN1PROD with RULES




                                                232.617    [Redesignated as 232.611]                                                                          claimed that PHMSA changed the
                                                                                                          On March 11, 2015, PHMSA
                                                ■ 10. Redesignate section 232.617 as                    published a final rule amending the                   acceptable test factor for a pressure
                                                232.611.                                                pipeline safety regulations to make                   vessel built under the American Society
                                                                                                        miscellaneous changes that update and                 or Mechanical Engineers (ASME) Boiler
                                                232.611    [Amended]
                                                                                                        clarify certain regulatory requirements               and Pressure Vessel Code (BPVC) from
                                                ■ 11. In the newly redesignated section                 (80 FR 12762). These amendments                       the ASME requirements of 1.3 times the
                                                232.611, amend paragraph (a) by                         address several subject matter areas,                 Maximum Allowable Working Pressure


                                           VerDate Sep<11>2014   17:12 Sep 29, 2015   Jkt 235001   PO 00000   Frm 00061   Fmt 4700   Sfmt 4700   E:\FR\FM\30SER1.SGM   30SER1


                                                58634        Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Rules and Regulations

                                                (MAWP) to 1.5 times the Maximum                         § 192.305 to specify that a pipeline                     § 192.305, as it undermines the 2002
                                                Allowable Operating Pressure (MAOP).                    operator must not use operator                           NAPSR CR–1–02 resolution. NAPSR
                                                   INGAA and AGA requested that                         personnel to perform a required                          asked for a delay in the effective date of
                                                PHMSA reconsider this change due to a                   inspection if the operator personnel also                the final rule relative to § 192.305 until
                                                lack of technical justification and                     performed the construction task that                     PHMSA has reviewed the rule and
                                                regulatory support, asking PHMSA to, at                 required inspection. This amendment                      worked with NAPSR to address its
                                                a minimum, conduct a study to validate                  was based, in part, on a petition (Docket                concerns. According to NAPSR,
                                                the future use of 1.5 times MAOP for                    No. PHMSA–2010–0026) from the                            allowing contractor personnel to inspect
                                                ASME pressure vessels and create an                     National Association of Pipeline Safety                  the work performed by their own
                                                exception for ASME pressure vessels                     Representatives (NAPSR),1 which                          company does not remove the inherent
                                                that were put into operation between                    suggested that contractors who install                   conflict of interest that is present and
                                                July 14, 2004 (when the 1.3 factor was                  transmission lines or mains should be                    defeats the safety benefits that NAPSR
                                                adopted by ASME) and October 1, 2015                    prohibited from inspecting their own                     intended. NAPSR stated that its original
                                                (the final rule’s effective date).                      work for compliance purposes. On                         resolution would have prohibited
                                                   After reviewing INGAA’s and AGA’s                    Wednesday, July 11, 2012, the Gas                        contractors from self-inspecting their
                                                petitions for reconsideration, the                      Pipeline Advisory Committee                              own work. NAPSR noted that,
                                                language in the final rule, and the                     recommended that PHMSA adopt the                         unfortunately, the final rule’s
                                                Pipeline Safety Regulations (PSR),                      amendment.                                               amendment specifically allows contract
                                                PHMSA disagrees with the petitioners’                      On April 10, 2015, the APGA                           personnel to inspect the work of their
                                                claim that the change, as written, was a                petitioned for a clarification, or in the                own crews so long as the inspector did
                                                departure from industry and agency                      alternative, a reconsideration of the final              not directly perform the task being
                                                understanding. The pressure testing                     rule. The APGA stated that the                           inspected. Additionally, the amendment
                                                requirements in the PSR for pipelines in                amendment to § 192.305 has the                           appears to apply to operator
                                                Class 3 and 4 areas, as well as facilities              potential to impose significant costs on                 construction personnel as well, which
                                                located in Class 1 and 2 areas, are                     publicly-owned gas distribution systems                  was not NAPSR’s original intent since,
                                                subject to the requirements of                          with little, if any, corresponding safety                in its experience, operator personnel
                                                § 192.505(b) and require a pressure test                benefit. The APGA stated that if a utility               have less of an incentive to accept poor-
                                                equal to a minimum of 1.5 times the                     has only one qualified crew that works                   quality work. Further, the final rule
                                                MAOP. The testing requirements of                       together to construct distribution mains,                mistakenly decreases the scope of the
                                                § 192.505(b), which were not revised in                 there would not be anyone working for                    inspection by changing the inspection
                                                the final rule, state that in a Class 1 or              the utility available and qualified to                   requirements to only those found in
                                                Class 2 location, each compressor                       perform the inspection. According to                     Subpart G for the construction of mains
                                                station, regulator station, and measuring               the APGA, 585 municipal gas utilities                    and transmission lines,, rather than in
                                                station must be tested to at least Class                have 5 or fewer employees. The APGA                      all of Part 192 as it was prior to the
                                                3 location test requirements. PHMSA                     went on to say that prohibiting small                    amendment.
                                                believes the amendment to § 192.153                     utilities from having their own
                                                and the corresponding cross-reference                                                                               As stated in the final rule, PHMSA
                                                                                                        employees inspect pipeline construction                  believes that these construction
                                                with § 192.165(b)(3) simply clarify the                 work performed by employees of the
                                                regulations, is consistent with existing                                                                         inspections are important safety
                                                                                                        municipal utility would significantly                    requirements because transmission
                                                agency understanding and practice, and                  increase the costs for those utilities by
                                                ensures regulated parties do not                                                                                 pipelines and distribution mains are
                                                                                                        requiring small utilities to contract with               usually buried after construction, and
                                                incorrectly use the newer ASME BPVC                     third parties for such inspections. The
                                                design factor of 1.3 for pressure testing                                                                        subsequent examinations of these
                                                                                                        APGA stated that its concerns would be                   pipelines often involve a difficult
                                                in instances where pipelines must be                    alleviated by a clarification stating a
                                                tested at 1.5 times MAOP.                                                                                        excavation process. Upon further
                                                                                                        two-man utility crew may inspect each                    examination of the impacts of this
                                                   Regarding INGAA’s request to create                  other’s work and comply with the
                                                an exception for ASME pressure vessels                                                                           amendment, in particular the issues
                                                                                                        amendment to § 192.305.                                  raised by the petitioners, PHMSA
                                                put into operation between July 14,                        On April 10, 2015, the AGA
                                                2004, and October 1, 2015, from the                                                                              believes that further examination and
                                                                                                        petitioned PHMSA to extend the
                                                requirements found at § 192.153(e),                                                                              analysis of this safety issue is warranted
                                                                                                        compliance date for the amendments in
                                                PHMSA is considering INGAA’s request                                                                             prior to this change going into effect.
                                                                                                        § 192.305 and § 195.204 from October 1,
                                                and will be evaluating the potential                                                                             Therefore, PHMSA is delaying the
                                                                                                        2015, to January 1, 2016. The AGA
                                                costs and environmental implications to                                                                          effective date of the amendment to 49
                                                                                                        asked for this additional time to allow
                                                operators to retest the non-compliant                                                                            CFR 192.305 indefinitely. During this
                                                                                                        pipeline operators to modify their
                                                pressure vessels.                                                                                                delay, PHMSA will be evaluating the
                                                                                                        construction inspection procedures,
                                                                                                                                                                 ways operators are currently complying
                                                Responsibility To Conduct Construction                  align associated documentation, and
                                                                                                                                                                 with § 192.305, developing guidance
                                                Inspections; 49 CFR 192.305                             ensure proper training is in place for
                                                                                                                                                                 (based on input from industry and other
                                                                                                        both company employees and
                                                   Prior to the issuance of the final rule                                                                       regulatory bodies) and hosting a series
                                                                                                        contractors.
                                                on March 11, 2015, § 192.305 stated that                                                                         of workshops on the guidance. Upon
                                                                                                           On July 28, 2015, NAPSR petitioned
                                                ‘‘each transmission pipeline or main                                                                             completion of this evaluation, PHMSA
                                                                                                        PHMSA to reconsider the revision of
                                                must be inspected to ensure that it is                                                                           will determine the efficacy of the
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                                                constructed in accordance with this                       1 NAPSR is a non-profit organization of state          amendment and decide if any additional
                                                part,’’ and § 195.204 stated ‘‘inspection               pipeline safety personnel who serve to promote           amendments to the current regulations
                                                must be provided to ensure the                          pipeline safety in the United States and its             are warranted and to propose any
                                                installation of pipe or pipeline systems                territories. Its membership includes the staff           necessary amendments to § 192.305.
                                                                                                        manager responsible for regulating pipeline safety
                                                in accordance with the requirements of                  from each state that is certified to do so or conducts
                                                                                                                                                                 Please note, the effective date for all the
                                                this subpart.’’ In the final rule issued on             inspections under an agreement with DOT in lieu          other amendments contained in the
                                                March 11, 2015, PHMSA amended                           of certification.                                        final rule remains October 1, 2015.


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                                                             Federal Register / Vol. 80, No. 189 / Wednesday, September 30, 2015 / Rules and Regulations                                              58635

                                                III. Regulatory Analyses and Notices                    Unfunded Mandates Reform Act of 1995                  of our dockets. You may review DOT’s
                                                                                                           This final rule does not impose                    complete Privacy Act Statement
                                                Executive Order 12866, Executive Order
                                                                                                        unfunded mandates under the                           published in the Federal Register on
                                                13563, and DOT Regulatory Policies and
                                                                                                        Unfunded Mandates Reform Act of                       April 11, 2000 (70 FR 19477).
                                                Procedures
                                                                                                        1995. It would not result in costs of                 Executive Order 13132
                                                   This final rule is a non-significant                 $100 million, adjusted for inflation, or
                                                regulatory action under section 3(f) of                 more in any one year to either State,                    PHMSA has analyzed this final rule
                                                Executive Order 12866 (58 FR 51735)                     local, or tribal governments, in the                  according to Executive Order 13132
                                                and therefore was not reviewed by the                   aggregate, or to the private sector, and              (‘‘Federalism’’). This final rule does not
                                                Office of Management and Budget. This                   is the least burdensome alternative that              have a substantial direct effect on the
                                                final rule is not significant under the                 achieves the objective of the final rule.             States, the relationship between the
                                                Regulatory Policies and Procedures of                                                                         national government and the States, or
                                                the Department of Transportation (44 FR                 National Environmental Policy Act
                                                                                                                                                              the distribution of power and
                                                11034).                                                    The National Environmental Policy                  responsibilities among the various
                                                   This final rule will not impose                      Act (42 U.S.C. 4321–4375) requires that               levels of government. This final rule
                                                increased compliance costs on the                       Federal agencies analyze final actions to             does not impose substantial direct
                                                regulated industry. The amendments to                   determine whether those actions will                  compliance costs on State and local
                                                the March 11, 2015 final rule provide                   have a significant impact on the human                governments. This final rule does not
                                                regulatory relief to pipeline operators                 environment. The Council on                           preempt State law for intrastate
                                                involved in construction inspection and                 Environmental Quality regulations                     pipelines. Therefore, the consultation
                                                do not alter the cost benefit analysis and              requires Federal agencies to conduct an               and funding requirements of Executive
                                                conclusions.                                            environmental review considering (1)                  Order 13132 do not apply.
                                                                                                        the need for the final action, (2)
                                                Regulatory Flexibility Act                              alternatives to the final action, (3)                 Executive Order 13211
                                                                                                        probable environmental impacts of the
                                                   Under the Regulatory Flexibility Act                                                                         This final rule is not a ‘‘significant
                                                                                                        final action and alternatives, and (4) the
                                                (5 U.S.C. 601 et seq.), PHMSA must                                                                            energy action’’ under Executive Order
                                                                                                        agencies and persons consulted during
                                                consider whether rulemaking actions                                                                           13211 (Actions Concerning Regulations
                                                                                                        the consideration process. 40 CFR
                                                would have a significant economic                                                                             That Significantly Affect Energy Supply,
                                                                                                        1508.9(b).
                                                impact on a substantial number of small                    The amendment adopted in this final                Distribution, or Use). It is not likely to
                                                entities. This final rule will not impose               rule will not impose increased                        have a significant adverse effect on
                                                increased compliance costs on the                       compliance costs on the regulated                     supply, distribution, or energy use.
                                                regulated industry. The delay in the                    industry or have any measureable effect               Further, the Office of Information and
                                                effective date to § 192.305 does not alter              on our original assessment. The                       Regulatory Affairs has not designated
                                                our original certification that the March               amendments to the March 11, 2015,                     this final rule as a significant energy
                                                11, 2015 final rule does not have a                     final rule provide regulatory relief to               action.
                                                significant impact on a substantial                     pipeline operators involved in                          The effective date for the amendment
                                                number of small entities. Therefore, I                  construction inspection. Overall, this                revising 49 CFR 192.305, published
                                                certify under Section 605 of the                        final rule will reduce the compliance                 March 11, 2015, at 80 FR 12779, is
                                                Regulatory Flexibility Act (5 U.S.C. 605)               burden without compromising pipeline                  delayed indefinitely.
                                                that this final rule will not have a                    safety. Therefore, PHMSA has
                                                significant economic impact on a                                                                                Issued in Washington, DC on September
                                                                                                        determined that this final rule will not              25, 2015, under authority delegated in 49
                                                substantial number of small entities.                   have a significant impact on the human                CFR Part 1.97.
                                                Paperwork Reduction Act                                 environment.                                          Stacy Cummings,
                                                  This final rule imposes no new                        Privacy Act Statement                                 Interim Executive Director.
                                                requirements for recordkeeping and                        Anyone may search the electronic                    [FR Doc. 2015–24763 Filed 9–29–15; 8:45 am]
                                                reporting.                                              form of all comments received for any                 BILLING CODE P
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Document Created: 2015-12-15 09:31:33
Document Modified: 2015-12-15 09:31:33
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; response to petitions for reconsideration.
DatesThe effective date of the amendment to 49 CFR 192.305, published at 80 FR 12779, March 11, 2015, is delayed indefinitely. PHMSA will publish a document in the Federal Register announcing a new effective date.
ContactKay McIver, Transportation Specialist, by telephone at 202-366-0113, or by electronic mail at [email protected]
FR Citation80 FR 58633 
RIN Number2137-AE59

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