81_FR_6358 81 FR 6334 - Pipeline Safety: Safe Operations of Underground Storage Facilities for Natural Gas

81 FR 6334 - Pipeline Safety: Safe Operations of Underground Storage Facilities for Natural Gas

DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration

Federal Register Volume 81, Issue 24 (February 5, 2016)

Page Range6334-6336
FR Document2016-02228

PHMSA is issuing this advisory bulletin to remind all owners and operators of underground storage facilities used for the storage of natural gas, as defined in 49 CFR part 192, to consider the overall integrity of the facilities to ensure the safety of the public and operating personnel and to protect the environment. Operators are reminded to review their operations to identify the potential of facility leaks and failures caused by corrosion, chemical damage, mechanical damage, or other material deficiencies in piping, tubing, casing, valves, and associated facilities and the importance of reviewing the location and operations of shut-off and isolation systems and reviewing and updating emergency plans as necessary.

Federal Register, Volume 81 Issue 24 (Friday, February 5, 2016)
[Federal Register Volume 81, Number 24 (Friday, February 5, 2016)]
[Notices]
[Pages 6334-6336]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02228]



[[Page 6334]]

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

DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2016-0016]


Pipeline Safety: Safe Operations of Underground Storage 
Facilities for Natural Gas

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

ACTION: Notice; issuance of advisory bulletin.

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

SUMMARY: PHMSA is issuing this advisory bulletin to remind all owners 
and operators of underground storage facilities used for the storage of 
natural gas, as defined in 49 CFR part 192, to consider the overall 
integrity of the facilities to ensure the safety of the public and 
operating personnel and to protect the environment. Operators are 
reminded to review their operations to identify the potential of 
facility leaks and failures caused by corrosion, chemical damage, 
mechanical damage, or other material deficiencies in piping, tubing, 
casing, valves, and associated facilities and the importance of 
reviewing the location and operations of shut-off and isolation systems 
and reviewing and updating emergency plans as necessary.

FOR FURTHER INFORMATION CONTACT: Operators of pipelines subject to 
regulation by PHMSA should contact Mr. Kenneth Lee at 202-366-2694 or 
email to: [email protected].
    Intrastate gas pipeline and underground storage facility operators 
should contact the appropriate state pipeline safety authority. A list 
of state pipeline safety authorities is provided at: www.napsr.org.

SUPPLEMENTARY INFORMATION:

I. Background

    On October 23, 2015, Southern California Gas Company's (SoCal Gas) 
Aliso Canyon Well SS25 failed, causing a sustained and uncontrolled 
natural gas leak in an area known as Porter Ranch in Los Angeles, 
California. At the present time, the well leak is believed to be from 
the subsurface (downhole) well casing. The well was drilled in 1953 and 
was later converted to natural gas storage well in 1972. Over 4,400 
households (families) have been relocated due to the natural gas 
odorant (mercaptans) according to the Aliso Canyon Incident Command 
briefing report issued on February 1, 2016. On January 6, 2016, 
California Governor Jerry Brown issued a proclamation declaring the 
Aliso Canyon incident a state emergency. After repeated unsuccessful 
attempts to contain the leak, a relief well is being drilled to plug 
the leaking well. The Aliso Canyon underground storage field, which can 
store up to 86 billion cubic feet of natural gas, has 115 storage 
wells, and is the second largest storage facility of its kind in the 
United States. The root cause of this failure is the subject of ongoing 
investigations and assessments and the root cause analysis is being 
conducted by an independent third party expert firm. PHMSA is working 
closely with the State of California to provide technical assistance 
and to support State regulatory agencies related to their response and 
oversight activities.
    Since 2001 several accidents involving underground gas storage 
facilities have occurred and two of the more extensive accidents that 
occurred in Texas and Kansas are highlighted below. On August 19, 2004, 
the Market Hub Partners Moss Bluff storage facility located in Liberty 
County, Texas, had a well control incident and natural gas fire at 
Cavern #1. Over a period of six and one-half days, approximately 6 
billion cubic feet of natural gas in the cavern was released and 
burned. The fire eventually self-extinguished, and late on August 26, 
2004, installation of a blowout prevention valve was completed, 
effectively placing the well back under control. The Moss Bluff storage 
facility was comprised of three separated underground caverns leached 
out of a salt formation beneath the surface; a compressor station to 
help move natural gas into and out of the caverns; well head assemblies 
on each of the caverns for operational control purposes; and natural 
gas, fresh water and salt water (brine) piping and related facilities 
to facilitate transportation and/or holding of those materials A 
detailed investigation by company personnel and outside consultants 
determined the accident was caused by a separation of the 8\5/8\-inch 
well string inside the cavern; a breach of the 8-inch brine piping 
above ground; and the separation of the wellhead assembly above the 
cavern.
    On January 17 and 18, 2001, another accident occurred at the Yaggy 
underground natural gas storage field operated by Kansas Gas Service, 
where a wellbore failure which led to a series of gas explosions in 
Hutchinson, Kansas. The storage field injected natural gas at a depth 
of 600 to 900 feet underground into salt caverns. Gas leaked from the 
storage field well production casing, migrated approximately nine miles 
underground, and then traveled to the surface through old brine, or 
salt wells, in the Hutchinson, Kansas area. An explosion in downtown 
Hutchinson destroyed two businesses, damaged 26 other businesses, and 
killed two persons in a mobile home park. Approximately 143 million 
cubic feet of natural gas leaked from the storage field.
    In this Advisory Bulletin, PHMSA recommends that all operators of 
underground storage facilities used for the storage of natural gas, as 
defined in 49 CFR parts 192, have processes, procedures, mitigation 
measures, periodic assessments and reassessments, and emergency plans 
to maintain the safety and integrity of all wells and associated 
storage facilities whether operating, idled, or plugged. These 
processes and procedures should take into consideration the age, 
construction, maximum operating pressures, operating and maintenance 
history, product, corrosion, casing and tubing condition (including 
chemical and mechanical damage), cement condition and depths or 
heights, safety valves (surface and subsurface), operation of each 
well, and the amount of time elapsed since the most recent assessment.

II. Advisory Bulletin (ADB-2016-02)

    To: Owners and Operators of Underground Pipeline and Storage 
Facilities.
    Subject: Safe Operation of Underground Storage Facilities for 
Natural Gas
    Advisory: Operators of underground storage facilities used for the 
storage of natural gas, as defined in 49 CFR part 192, should review 
their operating, maintenance, and emergency response activities to 
ensure the integrity of underground storage facilities are properly 
maintained. This bulletin is intended to inform operators about 
recommended practices and to urge operators to take all necessary 
actions, including but not limited to those set forth in this bulletin, 
to prevent and mitigate breach of integrity, leaks, or failures at 
their underground storage facilities and to ensure the safety of the 
public and operating personnel and to protect the environment.
    Operators should have comprehensive and up-to-date processes, 
procedures, mitigation measures, periodic assessments and 
reassessments, and emergency plans in place to maintain the safety and 
integrity of all underground storage wells and associated facilities 
whether operating, idled, or plugged. Operators must adhere to 
applicable State regulations for the permitting, drilling, completion, 
and operation of storage wells. In

[[Page 6335]]

developing, implementing, and updating their safety and integrity 
programs, we encourage underground gas storage facility operators to 
reference PHMSA Advisory Bulletin 97-04, dated July 10, 1997, and to 
voluntarily implement American Petroleum Institute (API) Recommended 
Practices (RP) 1170, ``Design and Operation of Solution-mined Salt 
Caverns Used for Natural Gas Storage, First Edition, July 2015,'' API 
RP 1171 ``Functional Integrity of Natural Gas Storage in Depleted 
Hydrocarbon Reservoirs and Aquifer Reservoirs, First Edition, September 
2015,'' and Interstate Oil and Gas Compact Commission (IOGCC) standards 
entitled ``Natural Gas Storage in Salt Caverns--A Guide for State 
Regulators'' (IOGCC Guide), as applicable. The IOGCC Guide provides 
safety standards for the design, construction, and operation of gas 
storage caverns. Copies of the API recommended practices can be 
obtained at http://www.api.org/Publications-Standards-and-Statistics/Publications/Government-cited-Safety-Documents. Copies of the IOGCC 
Guide can be obtained from the Interstate Oil and Gas Compact 
Commission, 900 NE 23rd Street, Oklahoma City, Oklahoma 73152-3127 
(phone: 405/525-3556; email: [email protected]). API has an 
accredited process to develop recommended practices and standards that 
involves industry, manufacturers, engineering firms, construction 
contractors, the public, academia, and government.
    In addition, operator's operating and maintenance (O&M) processes 
and procedures should be reviewed and updated at least annually, unless 
operational inspections for integrity warrant shorter review periods. 
O&M processes and procedures should include data collection and 
integration, risk assessments, monitoring, operational limits, 
mitigation measures, and record keeping for any underground storage 
facility threat that could impact public safety, operating personnel, 
or the environment due to leakage, failure, or abnormal operating 
conditions whether above ground or underground. At a minimum, operator 
actions should include, but not be limited to, the following:
    1. Operators should verify that the pressure required to inject 
intended natural gas volumes, including any maximum treating and 
stimulation pressures for the underground storage well, does not exceed 
the design pressure limits of the reservoir, wells, wellheads, piping, 
casing, tubing, or associated facilities, and document such 
verification.
    2. The operator should monitor all wells for the presence of 
annular gas or liquids by measuring and recording annular pressure, 
including between casing and tubing strings at the wellhead, and any 
known annular flow on a periodic basis.
    3. The operator should inspect the wellhead assembly and attached 
pipelines for each of the wells used in an underground storage facility 
on a periodic basis, with the frequency of the inspections defined by 
the operator's risk assessment. This inspection should include leak 
detection technology and monitoring of casing pressure changes at the 
wellhead. The operator's selection and usage of leak detection 
technology should take into consideration detection limits for natural 
gas or any liquids, response time, reproducibility, accuracy, distance 
from source, background lighting conditions, geography, and 
meteorology.
    4. The operator should conduct periodic functional tests of all 
surface and subsurface safety valve systems and wellhead pipeline 
isolation valve(s) for proper function and ability to shut-off or 
isolate the well as required for operational and emergency situations. 
Deficiencies, test failures, and equipment that do not meet functional 
specifications should be repaired or replaced promptly in order to 
assure the well's ability to control and isolate natural gas flows from 
the reservoir and well. Inoperable surface and subsurface safety valves 
on storage well(s) should be either repaired, removed or replaced, the 
well temporarily plugged, or alternative equivalent safety measures 
implemented.
    5. When evaluating the need for subsurface safety valves on new, 
removed, or replaced tubing strings or production casing, operators 
should perform risk assessments in a manner that reviews at a minimum 
the API RP 1171 criteria. Where subsurface safety valves are not 
installed on wells, risk assessments should be used to inform decisions 
on integrity inspection frequencies and reassessment intervals, and 
mitigation criteria and procedures for the well production casing and 
tubing should be evaluated and implemented as necessary.
    6. Operators should conduct ongoing assessments for the 
verification and demonstration of the mechanical integrity of each well 
and related piping and equipment used in the underground storage 
facility. The relevant factors to consider in verifying and 
demonstrating well integrity should include as a minimum: Well service 
life history; design; construction; maximum operating pressures 
(injection, withdrawal, maximum treating and stimulation); product, 
corrosion, casing and tubing condition; cement condition and depths or 
heights; safety valves (surface and subsurface); operation of each 
well; and the time interval since the most recent assessment and past 
assessment findings.
    7. Operators should have a corrosion monitoring and integrity 
evaluation program that includes the following:
    (i) Evaluation of casing and tubular integrity and identification 
of defects caused by corrosion or other chemical or mechanical damage;
    (ii) Corrosion potential of wellbore-produced fluids and solids, 
including the impact of operating pressure on the corrosion potential 
of wellbore fluids and analysis of partial pressures;
    (iii) Corrosion potential of annular and any packer fluid;
    (iv) Corrosion potential of current flows associated with cathodic 
protection systems;
    (v) Corrosion potential of all formation fluids, including fluids 
in formations above the storage zone;
    (vi) Corrosion potential of un-cemented casing annuli, including 
static liquid levels;
    (vii) Corrosion potential of pipelines and other production 
facilities attendant to the underground storage facility including the 
corrosion potential of adverse-current flows associated with their 
cathodic protection systems; and
    (viii) Periodic usage of the appropriate well log evaluations (such 
as corrosion, cement bond, temperature, noise, caliper and other 
appropriate assessment logs for integrity evaluations of the production 
casing and tubing strings) to determine well integrity, mitigation 
measures, and reassessment intervals to maintain the pressure rating 
and flow isolation characteristics of the well for all downhole pipe, 
cement, and any other isolation equipment.
    8. Procedures for the evaluation of well and attendant storage 
facilities should include analysis of facility flow erosion, hydrate 
potential, individual facility component capacity and fluid disposal 
capability at intended gas flow rates and pressures, and analysis of 
the specific impacts that the intended operating pressure range could 
have on the corrosive potential of fluids in the system.
    9. Identification of potential threats and hazards associated with 
operation of the underground storage facility should include the 
following:
    (i) Evaluation of risk (likelihood of events and consequences 
related to the events);

[[Page 6336]]

    (ii) Determination of a risk ranking to develop and implement 
preventive and mitigative measures;
    (iii) Documentation of risk evaluation and decision basis for 
preventive and mitigative measures implemented;
    (iv) Provision for data feedback and validation; and
    (v) Regular, periodic risk assessment reviews to update 
information, and evaluate risk management effectiveness.
    10. For ongoing verification and demonstration of the integrity of 
the underground storage reservoir or cavern, operators should use 
appropriate monitoring techniques such as the monitoring of pressure 
and periodic pressure surveys, inventory (injection & withdrawal of all 
products), product levels, cavern subsidence, and the findings from 
adjacent production and water wells, and observation wells used to 
monitor underground storage including any integrity changes.
    11. Emergency procedures should identify the types of emergencies 
for which the operator should notify public emergency response 
officials, personnel training, periodic communication with local 
emergency response officials, identification of the local area 
impacted, notices to the public, and identification of any third-party 
service providers or technical experts needed in the event of an 
emergency. Emergency procedures should be reviewed, conducted, and 
updated at least annually.
    12. Records of the processes, procedures, assessments, 
reassessments, and mitigation measures required should be maintained 
for the life of the storage well.

    Issued in Washington, DC, on February 2, 2016, under authority 
delegated in 49 CFR 1.97.
Alan K. Mayberry,
Deputy Associate Administrator for Policy and Programs.
[FR Doc. 2016-02228 Filed 2-4-16; 8:45 am]
 BILLING CODE 4910-60-P



                                                  6334                           Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices

                                                  DEPARTMENT OF TRANSPORTATION                            state emergency. After repeated                       old brine, or salt wells, in the
                                                                                                          unsuccessful attempts to contain the                  Hutchinson, Kansas area. An explosion
                                                  Pipeline and Hazardous Materials                        leak, a relief well is being drilled to plug          in downtown Hutchinson destroyed two
                                                  Safety Administration                                   the leaking well. The Aliso Canyon                    businesses, damaged 26 other
                                                  [Docket No. PHMSA–2016–0016]                            underground storage field, which can                  businesses, and killed two persons in a
                                                                                                          store up to 86 billion cubic feet of                  mobile home park. Approximately 143
                                                  Pipeline Safety: Safe Operations of                     natural gas, has 115 storage wells, and               million cubic feet of natural gas leaked
                                                  Underground Storage Facilities for                      is the second largest storage facility of             from the storage field.
                                                  Natural Gas                                             its kind in the United States. The root                  In this Advisory Bulletin, PHMSA
                                                                                                          cause of this failure is the subject of               recommends that all operators of
                                                  AGENCY:   Pipeline and Hazardous                        ongoing investigations and assessments                underground storage facilities used for
                                                  Materials Safety Administration                         and the root cause analysis is being                  the storage of natural gas, as defined in
                                                  (PHMSA); DOT.                                           conducted by an independent third                     49 CFR parts 192, have processes,
                                                  ACTION: Notice; issuance of advisory                    party expert firm. PHMSA is working                   procedures, mitigation measures,
                                                  bulletin.                                               closely with the State of California to               periodic assessments and reassessments,
                                                                                                          provide technical assistance and to                   and emergency plans to maintain the
                                                  SUMMARY:    PHMSA is issuing this
                                                                                                          support State regulatory agencies related             safety and integrity of all wells and
                                                  advisory bulletin to remind all owners
                                                                                                          to their response and oversight                       associated storage facilities whether
                                                  and operators of underground storage
                                                                                                          activities.                                           operating, idled, or plugged. These
                                                  facilities used for the storage of natural
                                                                                                             Since 2001 several accidents                       processes and procedures should take
                                                  gas, as defined in 49 CFR part 192, to
                                                                                                          involving underground gas storage                     into consideration the age, construction,
                                                  consider the overall integrity of the
                                                                                                          facilities have occurred and two of the               maximum operating pressures,
                                                  facilities to ensure the safety of the
                                                                                                          more extensive accidents that occurred                operating and maintenance history,
                                                  public and operating personnel and to
                                                                                                          in Texas and Kansas are highlighted                   product, corrosion, casing and tubing
                                                  protect the environment. Operators are                  below. On August 19, 2004, the Market                 condition (including chemical and
                                                  reminded to review their operations to                  Hub Partners Moss Bluff storage facility              mechanical damage), cement condition
                                                  identify the potential of facility leaks                located in Liberty County, Texas, had a               and depths or heights, safety valves
                                                  and failures caused by corrosion,                       well control incident and natural gas                 (surface and subsurface), operation of
                                                  chemical damage, mechanical damage,                     fire at Cavern #1. Over a period of six               each well, and the amount of time
                                                  or other material deficiencies in piping,               and one-half days, approximately 6                    elapsed since the most recent
                                                  tubing, casing, valves, and associated                  billion cubic feet of natural gas in the              assessment.
                                                  facilities and the importance of                        cavern was released and burned. The
                                                  reviewing the location and operations of                                                                      II. Advisory Bulletin (ADB–2016–02)
                                                                                                          fire eventually self-extinguished, and
                                                  shut-off and isolation systems and                      late on August 26, 2004, installation of                 To: Owners and Operators of
                                                  reviewing and updating emergency                        a blowout prevention valve was                        Underground Pipeline and Storage
                                                  plans as necessary.                                     completed, effectively placing the well               Facilities.
                                                  FOR FURTHER INFORMATION CONTACT:                        back under control. The Moss Bluff                       Subject: Safe Operation of
                                                  Operators of pipelines subject to                       storage facility was comprised of three               Underground Storage Facilities for
                                                  regulation by PHMSA should contact                      separated underground caverns leached                 Natural Gas
                                                  Mr. Kenneth Lee at 202–366–2694 or                      out of a salt formation beneath the                      Advisory: Operators of underground
                                                  email to: kenneth.lee@dot.gov.                          surface; a compressor station to help                 storage facilities used for the storage of
                                                     Intrastate gas pipeline and                          move natural gas into and out of the                  natural gas, as defined in 49 CFR part
                                                  underground storage facility operators                  caverns; well head assemblies on each                 192, should review their operating,
                                                  should contact the appropriate state                    of the caverns for operational control                maintenance, and emergency response
                                                  pipeline safety authority. A list of state              purposes; and natural gas, fresh water                activities to ensure the integrity of
                                                  pipeline safety authorities is provided                 and salt water (brine) piping and related             underground storage facilities are
                                                  at: www.napsr.org.                                      facilities to facilitate transportation and/          properly maintained. This bulletin is
                                                  SUPPLEMENTARY INFORMATION:                              or holding of those materials A detailed              intended to inform operators about
                                                                                                          investigation by company personnel and                recommended practices and to urge
                                                  I. Background                                                                                                 operators to take all necessary actions,
                                                                                                          outside consultants determined the
                                                     On October 23, 2015, Southern                        accident was caused by a separation of                including but not limited to those set
                                                  California Gas Company’s (SoCal Gas)                    the 85⁄8-inch well string inside the                  forth in this bulletin, to prevent and
                                                  Aliso Canyon Well SS25 failed, causing                  cavern; a breach of the 8-inch brine                  mitigate breach of integrity, leaks, or
                                                  a sustained and uncontrolled natural gas                piping above ground; and the separation               failures at their underground storage
                                                  leak in an area known as Porter Ranch                   of the wellhead assembly above the                    facilities and to ensure the safety of the
                                                  in Los Angeles, California. At the                      cavern.                                               public and operating personnel and to
                                                  present time, the well leak is believed                    On January 17 and 18, 2001, another                protect the environment.
                                                  to be from the subsurface (downhole)                    accident occurred at the Yaggy                           Operators should have comprehensive
                                                  well casing. The well was drilled in                    underground natural gas storage field                 and up-to-date processes, procedures,
                                                  1953 and was later converted to natural                 operated by Kansas Gas Service, where                 mitigation measures, periodic
                                                  gas storage well in 1972. Over 4,400                    a wellbore failure which led to a series              assessments and reassessments, and
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  households (families) have been                         of gas explosions in Hutchinson,                      emergency plans in place to maintain
                                                  relocated due to the natural gas odorant                Kansas. The storage field injected                    the safety and integrity of all
                                                  (mercaptans) according to the Aliso                     natural gas at a depth of 600 to 900 feet             underground storage wells and
                                                  Canyon Incident Command briefing                        underground into salt caverns. Gas                    associated facilities whether operating,
                                                  report issued on February 1, 2016. On                   leaked from the storage field well                    idled, or plugged. Operators must
                                                  January 6, 2016, California Governor                    production casing, migrated                           adhere to applicable State regulations
                                                  Jerry Brown issued a proclamation                       approximately nine miles underground,                 for the permitting, drilling, completion,
                                                  declaring the Aliso Canyon incident a                   and then traveled to the surface through              and operation of storage wells. In


                                             VerDate Sep<11>2014   18:22 Feb 04, 2016   Jkt 238001   PO 00000   Frm 00110   Fmt 4703   Sfmt 4703   E:\FR\FM\05FEN1.SGM   05FEN1


                                                                                 Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices                                            6335

                                                  developing, implementing, and                              2. The operator should monitor all                 withdrawal, maximum treating and
                                                  updating their safety and integrity                     wells for the presence of annular gas or              stimulation); product, corrosion, casing
                                                  programs, we encourage underground                      liquids by measuring and recording                    and tubing condition; cement condition
                                                  gas storage facility operators to reference             annular pressure, including between                   and depths or heights; safety valves
                                                  PHMSA Advisory Bulletin 97–04, dated                    casing and tubing strings at the                      (surface and subsurface); operation of
                                                  July 10, 1997, and to voluntarily                       wellhead, and any known annular flow                  each well; and the time interval since
                                                  implement American Petroleum                            on a periodic basis.                                  the most recent assessment and past
                                                  Institute (API) Recommended Practices                      3. The operator should inspect the                 assessment findings.
                                                  (RP) 1170, ‘‘Design and Operation of                    wellhead assembly and attached                           7. Operators should have a corrosion
                                                  Solution-mined Salt Caverns Used for                    pipelines for each of the wells used in               monitoring and integrity evaluation
                                                  Natural Gas Storage, First Edition, July                an underground storage facility on a                  program that includes the following:
                                                  2015,’’ API RP 1171 ‘‘Functional                        periodic basis, with the frequency of the                (i) Evaluation of casing and tubular
                                                  Integrity of Natural Gas Storage in                     inspections defined by the operator’s                 integrity and identification of defects
                                                  Depleted Hydrocarbon Reservoirs and                     risk assessment. This inspection should               caused by corrosion or other chemical
                                                  Aquifer Reservoirs, First Edition,                      include leak detection technology and                 or mechanical damage;
                                                  September 2015,’’ and Interstate Oil and                monitoring of casing pressure changes at
                                                                                                                                                                   (ii) Corrosion potential of wellbore-
                                                  Gas Compact Commission (IOGCC)                          the wellhead. The operator’s selection
                                                                                                                                                                produced fluids and solids, including
                                                  standards entitled ‘‘Natural Gas Storage                and usage of leak detection technology
                                                                                                                                                                the impact of operating pressure on the
                                                  in Salt Caverns—A Guide for State                       should take into consideration detection
                                                                                                          limits for natural gas or any liquids,                corrosion potential of wellbore fluids
                                                  Regulators’’ (IOGCC Guide), as
                                                                                                          response time, reproducibility,                       and analysis of partial pressures;
                                                  applicable. The IOGCC Guide provides
                                                  safety standards for the design,                        accuracy, distance from source,                          (iii) Corrosion potential of annular
                                                  construction, and operation of gas                      background lighting conditions,                       and any packer fluid;
                                                  storage caverns. Copies of the API                      geography, and meteorology.                              (iv) Corrosion potential of current
                                                  recommended practices can be obtained                      4. The operator should conduct                     flows associated with cathodic
                                                  at http://www.api.org/Publications-                     periodic functional tests of all surface              protection systems;
                                                  Standards-and-Statistics/Publications/                  and subsurface safety valve systems and                  (v) Corrosion potential of all
                                                  Government-cited-Safety-Documents.                      wellhead pipeline isolation valve(s) for              formation fluids, including fluids in
                                                  Copies of the IOGCC Guide can be                        proper function and ability to shut-off or            formations above the storage zone;
                                                  obtained from the Interstate Oil and Gas                isolate the well as required for                         (vi) Corrosion potential of un-
                                                  Compact Commission, 900 NE 23rd                         operational and emergency situations.                 cemented casing annuli, including static
                                                  Street, Oklahoma City, Oklahoma                         Deficiencies, test failures, and                      liquid levels;
                                                  73152–3127 (phone: 405/525–3556;                        equipment that do not meet functional                    (vii) Corrosion potential of pipelines
                                                  email: iogcc@oklaosf.state.ok.us). API                  specifications should be repaired or                  and other production facilities attendant
                                                  has an accredited process to develop                    replaced promptly in order to assure the              to the underground storage facility
                                                  recommended practices and standards                     well’s ability to control and isolate                 including the corrosion potential of
                                                  that involves industry, manufacturers,                  natural gas flows from the reservoir and              adverse-current flows associated with
                                                  engineering firms, construction                         well. Inoperable surface and subsurface               their cathodic protection systems; and
                                                  contractors, the public, academia, and                  safety valves on storage well(s) should                  (viii) Periodic usage of the appropriate
                                                  government.                                             be either repaired, removed or replaced,              well log evaluations (such as corrosion,
                                                     In addition, operator’s operating and                the well temporarily plugged, or                      cement bond, temperature, noise,
                                                  maintenance (O&M) processes and                         alternative equivalent safety measures                caliper and other appropriate
                                                  procedures should be reviewed and                       implemented.
                                                                                                                                                                assessment logs for integrity evaluations
                                                  updated at least annually, unless                          5. When evaluating the need for
                                                                                                                                                                of the production casing and tubing
                                                  operational inspections for integrity                   subsurface safety valves on new,
                                                                                                          removed, or replaced tubing strings or                strings) to determine well integrity,
                                                  warrant shorter review periods. O&M                                                                           mitigation measures, and reassessment
                                                  processes and procedures should                         production casing, operators should
                                                                                                          perform risk assessments in a manner                  intervals to maintain the pressure rating
                                                  include data collection and integration,                                                                      and flow isolation characteristics of the
                                                  risk assessments, monitoring,                           that reviews at a minimum the API RP
                                                                                                          1171 criteria. Where subsurface safety                well for all downhole pipe, cement, and
                                                  operational limits, mitigation measures,
                                                                                                          valves are not installed on wells, risk               any other isolation equipment.
                                                  and record keeping for any underground
                                                  storage facility threat that could impact               assessments should be used to inform                     8. Procedures for the evaluation of
                                                  public safety, operating personnel, or                  decisions on integrity inspection                     well and attendant storage facilities
                                                  the environment due to leakage, failure,                frequencies and reassessment intervals,               should include analysis of facility flow
                                                  or abnormal operating conditions                        and mitigation criteria and procedures                erosion, hydrate potential, individual
                                                  whether above ground or underground.                    for the well production casing and                    facility component capacity and fluid
                                                  At a minimum, operator actions should                   tubing should be evaluated and                        disposal capability at intended gas flow
                                                  include, but not be limited to, the                     implemented as necessary.                             rates and pressures, and analysis of the
                                                  following:                                                 6. Operators should conduct ongoing                specific impacts that the intended
                                                     1. Operators should verify that the                  assessments for the verification and                  operating pressure range could have on
                                                  pressure required to inject intended                    demonstration of the mechanical                       the corrosive potential of fluids in the
                                                                                                                                                                system.
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  natural gas volumes, including any                      integrity of each well and related piping
                                                  maximum treating and stimulation                        and equipment used in the underground                    9. Identification of potential threats
                                                  pressures for the underground storage                   storage facility. The relevant factors to             and hazards associated with operation
                                                  well, does not exceed the design                        consider in verifying and demonstrating               of the underground storage facility
                                                  pressure limits of the reservoir, wells,                well integrity should include as a                    should include the following:
                                                  wellheads, piping, casing, tubing, or                   minimum: Well service life history;                      (i) Evaluation of risk (likelihood of
                                                  associated facilities, and document such                design; construction; maximum                         events and consequences related to the
                                                  verification.                                           operating pressures (injection,                       events);


                                             VerDate Sep<11>2014   18:22 Feb 04, 2016   Jkt 238001   PO 00000   Frm 00111   Fmt 4703   Sfmt 4703   E:\FR\FM\05FEN1.SGM   05FEN1


                                                  6336                           Federal Register / Vol. 81, No. 24 / Friday, February 5, 2016 / Notices

                                                     (ii) Determination of a risk ranking to              DEPARTMENT OF THE TREASURY                            government-issued photo identification
                                                  develop and implement preventive and                                                                          and submit to security screening in
                                                  mitigative measures;                                    Office of the Comptroller of the                      order to inspect and photocopy
                                                                                                          Currency                                              comments.
                                                     (iii) Documentation of risk evaluation
                                                  and decision basis for preventive and                                                                            All comments received, including
                                                                                                          Agency Information Collection                         attachments and other supporting
                                                  mitigative measures implemented;                        Activities: Revision of an Approved                   materials, are part of the public record
                                                     (iv) Provision for data feedback and                 Information Collection; Submission for                and subject to public disclosure. Do not
                                                  validation; and                                         OMB Review; Company-Run Annual                        include any information in your
                                                                                                          Stress Test Reporting Template and                    comment or supporting materials that
                                                     (v) Regular, periodic risk assessment
                                                                                                          Documentation for Covered                             you consider confidential or
                                                  reviews to update information, and
                                                                                                          Institutions With Total Consolidated                  inappropriate for public disclosure.
                                                  evaluate risk management effectiveness.                 Assets of $50 Billion or More Under the                  Additionally, please send a copy of
                                                     10. For ongoing verification and                     Dodd-Frank Wall Street Reform and                     your comments by mail to: OCC Desk
                                                  demonstration of the integrity of the                   Consumer Protection Act                               Officer, [1557–0319], U.S. Office of
                                                  underground storage reservoir or cavern,                                                                      Management and Budget, 725 17th
                                                                                                          AGENCY: Office of the Comptroller of the
                                                  operators should use appropriate                                                                              Street NW., #10235, Washington, DC
                                                                                                          Currency, Treasury (OCC).
                                                  monitoring techniques such as the                                                                             20503, or by email to: oira_
                                                                                                          ACTION: Notice and request for comment.
                                                  monitoring of pressure and periodic                                                                           submission_@omb.eop.gov.
                                                  pressure surveys, inventory (injection &                SUMMARY:   The OCC, as part of its                    FOR FURTHER INFORMATION CONTACT:
                                                  withdrawal of all products), product                    continuing effort to reduce paperwork                 Shaquita Merritt or Mary H. Gottlieb,
                                                  levels, cavern subsidence, and the                      and respondent burden, invites the                    OCC Clearance Officers, (202) 649–5490
                                                  findings from adjacent production and                   general public and other federal                      or, for persons who are deaf or hard of
                                                  water wells, and observation wells used                 agencies to comment on a revision to                  hearing, TTY, (202) 649–5597,
                                                  to monitor underground storage                          this information collection, as required              Legislative and Regulatory Activities
                                                  including any integrity changes.                        by the Paperwork Reduction Act of                     Division, Office of the Comptroller of
                                                     11. Emergency procedures should                      1995. An agency may not conduct or                    the Currency, 400 7th St. SW.,
                                                  identify the types of emergencies for                   sponsor, and a respondent is not                      Washington, DC 20219. In addition,
                                                                                                          required to respond to, an information                copies of the templates referenced in
                                                  which the operator should notify public
                                                                                                          collection unless it displays a currently             this notice can be found on the OCC’s
                                                  emergency response officials, personnel
                                                                                                          valid Office of Management and Budget                 Web site under News and Issuances
                                                  training, periodic communication with                   (OMB) control number. The OCC is
                                                  local emergency response officials,                                                                           (http://www.occ.treas.gov/tools-forms/
                                                                                                          finalizing revisions to a regulatory                  forms/bank-operations/stress-test-
                                                  identification of the local area impacted,              reporting requirement for national banks              reporting.html).
                                                  notices to the public, and identification               and federal savings associations titled,
                                                  of any third-party service providers or                 ‘‘Company-Run Annual Stress Test                      SUPPLEMENTARY INFORMATION:       The OCC
                                                  technical experts needed in the event of                Reporting Template and Documentation                  is requesting comment on the following
                                                  an emergency. Emergency procedures                      for Covered Institutions with Total                   revision to an approved information
                                                  should be reviewed, conducted, and                      Consolidated Assets of $50 Billion or                 collection:
                                                  updated at least annually.                              More under the Dodd-Frank Wall Street                    Title: Company-Run Annual Stress
                                                                                                          Reform and Consumer Protection Act.’’                 Test Reporting Template and
                                                     12. Records of the processes,                                                                              Documentation for Covered Institutions
                                                  procedures, assessments, reassessments,                 The OCC also is giving notice that it has
                                                                                                          sent the collection to OMB for review.                with Total Consolidated Assets of $50
                                                  and mitigation measures required                                                                              Billion or More under the Dodd-Frank
                                                  should be maintained for the life of the                DATES: Comments must be received by
                                                                                                                                                                Wall Street Reform and Consumer
                                                  storage well.                                           March 7, 2016.
                                                                                                                                                                Protection Act.
                                                                                                          ADDRESSES: Because paper mail in the
                                                    Issued in Washington, DC, on February 2,                                                                       OMB Control No.: 1557–0319.
                                                                                                          Washington, DC area and at the OCC is                    Description: Section 165(i)(2) of the
                                                  2016, under authority delegated in 49 CFR
                                                                                                          subject to delay, commenters are                      Dodd-Frank Wall Street Reform and
                                                  1.97.
                                                                                                          encouraged to submit comments by                      Consumer Protection Act 1 (Dodd-Frank
                                                  Alan K. Mayberry,                                       email, if possible. Comments may be
                                                  Deputy Associate Administrator for Policy
                                                                                                                                                                Act) requires certain financial
                                                                                                          sent to: Legislative and Regulatory                   companies, including national banks
                                                  and Programs.                                           Activities Division, Office of the                    and federal savings associations, to
                                                  [FR Doc. 2016–02228 Filed 2–4–16; 8:45 am]              Comptroller of the Currency, Attention:               conduct annual stress tests 2 and
                                                  BILLING CODE 4910–60–P                                  1557–0319, 400 7th Street SW., Suite                  requires the primary financial regulatory
                                                                                                          3E–218, Mail Stop 9W–11, Washington,                  agency 3 of those financial companies to
                                                                                                          DC 20219. In addition, comments may                   issue regulations implementing the
                                                                                                          be sent by fax to (571) 465–4326 or by                stress test requirements.4 A national
                                                                                                          electronic mail to prainfo@occ.treas.gov.             bank or Federal savings association is a
                                                                                                          You may personally inspect and                        ‘‘covered institution’’ and therefore
                                                                                                          photocopy comments at the OCC, 400                    subject to the stress test requirements if
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                                                                          7th Street SW., Washington, DC 20219.                 its total consolidated assets are more
                                                                                                          For security reasons, the OCC requires                than $10 billion. Under section
                                                                                                          that visitors make an appointment to                  165(i)(2), a covered institution is
                                                                                                          inspect comments. You may do so by
                                                                                                          calling (202) 649–6700 or, for persons                  1 Public Law 111–203, 124 Stat. 1376, July 2010.
                                                                                                          who are deaf or hard of hearing, TTY,                   2 12 U.S.C. 5365(i)(2)(A).
                                                                                                          (202) 649–5597. Upon arrival, visitors                  3 12 U.S.C. 5301(12).

                                                                                                          will be required to present valid                       4 12 U.S.C. 5365(i)(2)(C).




                                             VerDate Sep<11>2014   18:22 Feb 04, 2016   Jkt 238001   PO 00000   Frm 00112   Fmt 4703   Sfmt 4703   E:\FR\FM\05FEN1.SGM   05FEN1



Document Created: 2016-02-05 00:17:43
Document Modified: 2016-02-05 00:17:43
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice; issuance of advisory bulletin.
ContactOperators of pipelines subject to regulation by PHMSA should contact Mr. Kenneth Lee at 202-366-2694 or email to: [email protected]
FR Citation81 FR 6334 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR