[Federal Register Volume 81, Number 158 (Tuesday, August 16, 2016)]
[Rules and Regulations]
[Pages 54512-54514]
[FR Doc No: 2016-19494]

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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 192 and 195

[Docket No. PHMSA-2016-0075]

Pipeline Safety: Clarification of Terms Relating to Pipeline
Operational Status

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

ACTION: Issuance of Advisory Bulletin.

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SUMMARY: PHMSA is issuing this advisory bulletin to all owners and
operators (operators) of hazardous liquid, carbon dioxide, and gas
pipelines, as defined in 49 Code of Federal Regulations Parts 192 and
195, to clarify the regulatory requirements that may vary depending on
the operational status of a pipeline. Further, this advisory bulletin
identifies regulatory requirements operators must follow for the
abandonment of pipelines. Pipeline owners and operators should verify
their operations and procedures align with the regulatory intent of
defined terms as described under this bulletin. Congress recognized the
need for this clarification in its Protecting our Infrastructure of
Pipelines and Enhancing Safety Act of 2016.

DATES: August 16, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Daugherty at<PHONE_NUMBER> or
by email to<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    On March 17, 2014, a hazardous liquid pipeline company was notified
by emergency responders of crude oil leaking up from below the pavement
in a residential area in Wilmington, California. The leak was close to
a refinery. The company initially informed the regulator that it had no
active lines in the area but responded anyway.
    On March 18, 2014, the company excavated the area surrounding the
leaking oil and learned that the leak originated from a pipeline that
it owned. The pipeline had been purchased 16 years ago and the company
understood that the previous operator had properly abandoned and purged
the pipeline prior to purchase. Regulators determined the pipeline
leaked due to an internal ``pinhole'' corrosion leak on a weld.
    Subsequent investigations determined that while the pipeline was
not in operation, its valves were positioned to prevent flow but the
pipeline had never been purged and cleaned. Some regulators and
industry representatives informally referred to such pipelines as
``idled.''
    On May 31, 2015, a 24-inch natural gas ``auxiliary'' pipeline
crossing the Arkansas River in North Little Rock, Arkansas, failed due
to vortex-induced vibration after high water levels eroded the ground
cover and exposed the pipeline to the river's flow. The failure
released 3,858 cubic feet of natural gas into the atmosphere and
resulted in the temporary closure of the Arkansas River to vessel
traffic for five days. The pipeline at the time of the failure was
isolated by two mainline valves, at an approximate pressure of 700
pounds per square inch (psig). The pipeline, considered an emergency
back-up pipeline crossing the river, has not been fully operated since
1972. However, the company did maintain the pipeline as an active
pipeline, subject to in-line inspection, cathodic protection, and other
maintenance requirements.
    On October 28, 2015, Cypress, California, city public works
employees identified an oil-water mixture on a local road.
Approximately 28 barrels of oil-water mixture was determined to have
leaked from an oil pipeline that was believed to have been purged of
oil prior to deactivation in 1997. The owner of the pipeline had
purchased it from another company just prior to the failure.
    Congress recognized the need for PHMSA to provide clarification of
operational terms and ensure all operators are aware of and abide by
the regulatory requirements for properly abandoning pipelines. In its
``Protecting our Infrastructure of Pipelines and Enhancing Safety Act
of 2016,'' Congress required PHMSA to issue an advisory bulletin to
owners and operators of gas or hazardous liquid pipeline facilities and
Federal and State pipeline safety personnel regarding procedures
required to change the status of a pipeline facility from active to
abandoned, including specific guidance on the terms recognized by the
Secretary for each pipeline status referred to in such advisory
bulletin.
    PHMSA regulations do not recognize an ``idle'' status for hazardous
liquid or gas pipelines. The regulations consider pipelines to be
either active and fully subject to all relevant parts of the safety
regulations or abandoned. The process and requirements for pipeline
abandonment are captured in Sec. Sec.  192.727 and 195.402(c)(10) for
gas and hazardous liquid pipelines, respectively. These requirements

include purging all combustibles and sealing any facilities left in
place. The last owner or operator of abandoned offshore facilities and
abandoned onshore facilities that cross over, under, or through
commercially navigable waterways must file a report with PHMSA. PHMSA
regulations define the term ``abandoned'' to mean permanently removed
from service (Sec.  192.3).
    A 1998 report by the Research and Special Programs Administration
(RSPA), a predecessor agency to PHMSA, titled: ``Analysis of Pipeline
Burial Surveys in the Gulf of Mexico,'' stated: ``Abandonment involves
the permanent and, for all practical purposes, irreversible process of
discontinuing the use of a pipeline. The physical asset is abandoned in
the truest sense of the word; no future use or value is attributed to
it, and no attempts are made to maintain serviceability. Pipeline
systems or segments that are not abandoned, but only idled,
decommissioned, or mothballed, are considered to have the potential for
reuse at some point in the future. The maintenance and inspection to be
performed in these cases is a function of the probability of reuse, the
cost and difficulty of remediation which may be required, and the
potential impact of the in-place and idled facility on human safety and
the environment.''
    PHMSA is aware that some pipelines may have been abandoned prior to
the effective date of the abandonment regulations. Companies may not
have access to records relating to where these pipelines are located or
whether they were properly purged of combustibles and sealed. Owners
and operators have a responsibility to assure facilities for which they
are responsible or last owned do not present a hazard to people,
property or the environment.
    In the case study from Wilmington, California, provided above, the
pipeline company was aware of the pipeline and believed it to have been
properly abandoned by the previous owner/operator. The pipeline company
was cited and fined by a State regulator because it did not properly
maintain the active line or, alternatively, properly abandon the
pipeline facility.
    Pipelines not currently in operation but that may be used in the
future are sometimes informally referred to as ``idled,'' ``inactive,''
or ``decommissioned.'' These pipelines may be shut down and still
contain hazardous liquids or gas. Usually, the mainline valves on these
pipelines are closed, isolating them from other pipeline segments.
Frequently, blind flanges or welded end caps are used for further
isolation. Some pipelines do not operate for short periods of time such
as weeks or months. Other pipelines do not operate for years. If a
pipeline is not properly abandoned and may be used for the future for
transportation of hazardous liquid or gas, PHMSA regulations consider
it an active pipeline. Owners and operators of pipelines that are not
operating but contain hazardous liquids and gas must comply with all
relevant safety requirements, including periodic maintenance, integrity
management assessments, damage prevention programs, and public
awareness programs.
    PHMSA is aware that some owners and operators may properly purge a
pipeline of combustibles without abandonment because of an expectation
to later continue using the pipeline in hazardous materials
transportation. A purged pipeline presents different risks, and
different regulatory treatment may be appropriate. Degradation of such
a pipeline can occur, but it is not likely to result in significant
safety impacts to people, property, or the environment. PHMSA will
accept deferral of certain activities for purged but active pipelines.
These deferred activities might include actions impractical on most
purged pipelines such as in-line inspection. PHMSA is considering
proposing procedures in a future rulemaking that would address methods
owners or operators could use to notify regulators of purged but active
pipelines. In the interim, owners or operators planning to defer
certain activities for purged pipelines should coordinate the deferral
in advance with regulators. All deferred activities must be completed
prior to, or as part, of any later return-to-service. Pipeline owners
and operators are fully responsible for the safety of their pipeline
facilities at all times and during all operational statuses.

II. Advisory Bulletin (ADB-2016-05)

    To: Owners and Operators of Hazardous Liquid, Carbon Dioxide and
Gas Pipelines.
    Subject: Clarification of Terms Relating to Pipeline Operational
Status.
    Advisory: PHMSA regulations do not recognize an ``idle'' status for
a hazardous liquid or gas pipelines. The regulations consider pipelines
to be either active and fully subject to all parts of the safety
regulations or abandoned. The process and requirements for pipeline
abandonment are captured in Sec. Sec.  192.727 and 195.402(c)(10) for
gas and hazardous liquid pipelines, respectively. Pipelines abandoned
after the effective date of the regulations must comply with
requirements to purge all combustibles and seal any facilities left in
place. The last owner or operator of abandoned offshore facilities and
abandoned onshore facilities that cross over, under, or through
commercially navigable waterways must file a report with PHMSA. PHMSA
regulations define the term ``abandoned'' to mean permanently removed
from service.
    Companies that own pipelines abandoned prior to the effective date
of the abandonment regulations may not have access to records relating
to where these pipelines are located or whether they were properly
purged of combustibles and sealed. To the extent feasible, owners and
operators have a responsibility to assure facilities for which they are
responsible or last owned do not present a hazard to people, property
or the environment.
    Pipelines not currently in operation are sometimes informally
referred to as ``idled,'' ``inactive,'' or ``decommissioned.'' These
pipelines may be shut down and still contain hazardous liquids or gas.
Usually, the mainline valves on these pipelines are closed, isolating
them from other pipeline segments. If a pipeline is not properly
abandoned and may be used in the future for transportation of hazardous
liquid or gas, PHMSA regulations consider it as an active pipeline.
Owners and operators of pipelines that are not operating but contain
hazardous liquids and gas must comply with all applicable safety
requirements, including periodic maintenance, integrity management
assessments, damage prevention programs, response planning, and public
awareness programs.
    PHMSA is aware that some owners and operators may properly purge a
pipeline of combustibles with the expectation to later use that
pipeline in hazardous materials transportation. A purged pipeline
presents different risks, and therefore different regulatory treatment
may be appropriate. Degradation of such a pipeline can occur, but is
not likely to result in significant safety impacts to people, property,
or the environment. PHMSA will accept deferral of certain activities
for purged but active pipelines. These deferred activities might
include actions impractical on most purged pipelines, such as in-line
inspection. PHMSA is considering proposing procedures in a future
rulemaking that would address methods owners or operators could use to
notify regulators of purged but active pipelines. In the interim,
owners or operators planning to defer certain activities for purged
pipelines should coordinate the deferral in advance with

regulators. All deferred activities must be completed prior to, or as
part of, any later return-to-service. Pipeline owners and operators are
fully responsible for the safety of their pipeline facilities at all
times and during all operational statuses.

    Issued in Washington, DC, on August 11, 2016, under authority
delegated in 49 CFR 1.97.
Alan K. Mayberry,
Acting Associate Administrator for Pipeline Safety.
[FR Doc. 2016-19494 Filed 8-15-16; 8:45 am]
 BILLING CODE 4910-60-P