Pipeline Safety: Liquefied Natural Gas Facilities Petition for Waiver; Applied LNG Technologies

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

[Docket No. RSPA-97-2707; Notice 1]

Pipeline Safety: Liquefied Natural Gas Facilities Petition for

Waiver; Applied LNG Technologies

Applied LNG Technologies (ALT) has petitioned the Research and

Special Programs Administration (RSPA) for a waiver from compliance

with certain provisions of 49 CFR part 193 for its Needle Mountain

Liquefied Natural Gas (LNG) storage and truck loading facility at

Topock, Arizona. This facility consists of two 50,000 gallon LNG

storage tanks and a truck transfer system. It is piped to a

liquefaction facility owned and operated by a subsidiary of El Paso

Natural Gas. A transmission pipeline, owned by El Paso Natural Gas

Company supplies Part 192 regulated gas to the El Paso liquefaction

facility. ALT alleges that an extension of Part 193 jurisdiction to the

Needle Mountain LNG storage and truck loading facility would be

inconsistent with the language of Section 193.2001(a). Section

193.2001(a) states ``This part prescribes safety standards for LNG

facilities used in the transportation of gas by pipeline that is

subject to the Natural Gas Pipeline Safety Act of 1968 and Part 192 of

this chapter''. ALT states that the Needle Mountain LNG storage and

truck loading facility would not be transporting natural gas by

pipeline. ALT further points out that Section 193.2001(b)(1) states

``This part does not apply to LNG facilities used by the ultimate

consumer of LNG or natural gas''. ALT states that this facility would

be loading LNG into tank trucks for delivery to commercial and

industrial customers, thus, it is the ultimate consumer of LNG.

Therefore, ALT alleges that the Needle Mountain LNG storage and loading

facility is non-jurisdictional.

On May 16, 1997, the RSPA issued an Interpretation of Part 193 as

it applies to the Needle Mountain LNG Storage and truck loading

facility. LNG storage and truck loading facility is owned and operated

by Applied LNG Technology, Inc. The liquefaction facility and piping is

owned and operated by a subsidiary of El Paso natural gas. However, the

land on which the storage facility sits is owned by El Paso Natural

Gas. In that interpretation, RSPA stated that regardless of who owns or

operates different sections of an LNG facility, it is subject to Part

193 in its entirety. Part 193 encompasses all parts of an LNG facility

from the point at which it receives gas from a Part 192 regulated gas

transmission pipeline through the liquefaction process, storage, and

transfer into a motor carrier vehicle.

ALT now requests a waiver from compliance with certain sections of

Part 193 and proposes to ensure equivalent safety through compliance

with the National Fire Protection Association (NFPA) standard 59A. The

specific sections of Part 193 for which ALT seeks a waiver are:

(1) Section 193.2173--Water Removal: Sec. 193.2173(a) requires that

except for Class 1 systems, impounding systems must have sump pumps and

piping over the dike to remove water collecting in the sump basin.

NFPA 59A section 2-2.2.7 requires either sump pumps or gravity

drainage for water removal, provided there is means to prevent the

escape of LNG by way of the drainage system.

ALT's rationale for noncompliance: The impoundment area in this

facility drains to a sump basin. A sump pump is not provided due to the

arid location. In the rare event of rain in Topock, AZ, ALT does not

expect to have standing water for any length of time.

RSPA would agree with ALT that a sump pump and piping are not

necessary at this LNG facility due to the arid location only if ALT can

demonstrate that there would be no standing water (i.e., proving ground

is permeable) in the sump for any significant period. RSPA proposes to

grant the waiver from Sec. 193.2173 subject to the above condition.

(2) Section 193.2209(b)(2)--Instrumentation for LNG storage tanks:

For LNG tanks with capacity of 70,000 gallons or less,

Sec. 193.2209(b)(2) requires pressure gages and recorders with high

pressure alarm.

NFPA 59A 7-2.1 requires only a pressure gage.

ALT does not believe that safety has been compromised by requiring

only a pressure gage, because any high pressure in the storage tank is

controlled by a recompressor system within the ``facility'' that

maintains the storage pressure at 20 psig. Any failure of this system

places the entire storage facility in a ``fail safe'' (shut down) mode.

RSPA believes that recorders (at the storage tank site and possibly

at the control center) and a high pressure alarm (at the control

center) are essential in the event of the failure of the recompressor

system. Although the entire storage facility will be placed in a shut

down mode, there appears to be no way to prevent pressure from

increasing in the LNG storage tank. This is especially important

because this LNG storage facility will be an unattended operation.

Therefore, RSPA is proposing not to grant a waiver from

Sec. 193.2209(b)(2).

(3) Section 193.2321(a)--Nondestructive tests, Circumferential butt

welds: Sec. 193.2321(a) requires that 100 percent of circumferential

butt welded pipe joints in the cryogenic piping and 30 percent of

circumferential butt welded pipe joints in the non-cryogenic piping be

nondestructively tested.

NFPA 59A 6-6.3.2 requires all circumferential butt welds to be

nondestructively tested, except that liquid drain and vapor vent piping

with an operating pressure that produces a hoop stress of less than 20

percent of specified minimum yield stress (SMYS) need not be

nondestructively tested, provided it has been inspected visually in

accordance with the American Society of Mechanical Engineers

(ASME)standard B31.3, Chemical Plant and Petroleum Refinery Piping,

344.2.

RSPA believes that safety is not compromised and is considering

granting a waiver from Sec. 193.2321(a) for the liquid drain and vapor

vent piping with operating pressures that produce hoop stresses of less

than 20 percent SMYS, if that piping complies with the NFPA 59A 6-

6.3.2.

(4) 193.2321(e)--Nondestructive tests, Circumferential and

longitudinal welds in metal shells of storage tanks: Sec. 193.2321(e)

requires 100 percent of both longitudinal and circumferential butt

welds in metal shells of storage tanks that are subject to cryogenic

temperatures, and are under pressure, to be radiographically tested.

NFPA 59A 4-2.2.2 requires welded construction for shell in

accordance with the ASME Code section VIII, and shall be ASME-stamped

and registered with the National Board of Boiler and Pressure

Vessels(NBBI)

ALT's rationale for requesting a waiver is that safety in this case

is not compromised as ALT storage tanks are small, shop fabricated, and

built to ASME Code. ASME Section VIII is an accepted standard to which

cryogenic pressure vessels are built all over the world.

RSPA agrees that safety is not compromised by waiving the

requirements of Sec. 193.2321(e) for smaller pressure vessels (less

than

[[Page 41994]]

70,000 gallons) which are designed and built to ASME Code VIII (greater

than 15 psig). Tanks built to this code are shop fabricated under

strict quality control and are inspected and stamped by the Authorized

Inspectors of the NBBI. Storage tanks at the ALT LNG facility are built

to ASME code Section VIII and have a capacity of 50,000 gallons

(relatively small). Therefore, RSPA is proposing to grant the waiver

from Sec. 193.2321(e).

(5) Sections 193.2329 (a) and (b)--Construction Records:

Sec. 193.2329(a) require that an operator shall retain records of

specifications, procedures, and drawings consistent with this part, and

Sec. 193.2329(b) requires that an operator shall retain records of

results of tests, inspections and quality assurance program required by

this subpart.

ALT requests a waiver for records for design and manufacture of the

pressure vessels, because they are built to the ASME code as referenced

in NFPA 59A. ALT would comply with all other record keeping

requirements in accordance with Secs. 193.2329 (a) and (b).

RSPA agrees and is proposing to grant waiver from Secs. 193.2329

(a) and (b) for those parts of its facility where ALT has requested and

has been granted a waiver.

(6) Section 193.2431(c)--Vents: Sec. 193.2431(c) requires that

venting of natural gas/vapor under operational control which could

produce a hazardous gas atmosphere must be directed to a flare stack or

heat exchanger.

NFPA 59A 3-4.5 also requires safe discharge of boil-off and flash

gas to the atmosphere or into a closed system. NFPA 10-12.4.4 requires

that safety relief valve discharge stacks or vents shall discharge

directly into the atmosphere.

ALT is requesting a waiver from Sec. 193.2431(c) which requires

flare stacks. ALT's reasons for noncompliance are that (i) safety

relief valves relieve under emergency conditions, and (ii) there will

be no boil-off venting at this facility because LNG storage vessels are

maintained at a storage pressure of 20 psi by a recompressor system.

RSPA agrees that at this LNG facility recompressor system will

maintain a pressure of 20 psi in the LNG storage tanks. Therefore, no

continuous discharge of boil-off to atmosphere is expected. RSPA

believes that relief valves discharge only under emergency conditions.

Therefore, it is safe to discharge them to the atmosphere through a

stack without flaring.

Therefore, RSPA is proposing to grant a waiver from compliance with

Sec. 193.2431(c), as long as relief valves discharge through stacks

which are higher than surrounding structures at this facility.

(7) Section 193.2817 (b)(2)--Fire Equipment: Sec. 193.2817(b)(2)

requires fire control equipment and supplies to include a water supply

and associated delivery system, if the total inventory of LNG is 70,000

gallons.

NFPA 59A 9-5.1 similarly requires a water system except where an

evaluation in accordance with 9-1.2 indicates the use of water is

unnecessary or impractical. Section 9-1.2 also requires evaluation of

the methods necessary for protection of the equipment and structures

from the effects of fire exposure.

ALT not only requests a waiver from Sec. 193.2817(b)(2), but also

takes an exception to NFPA 59A 9-5.1. ALT's rationale for such a waiver

is that this facility is remotely located, generally unattended, and is

equipped with fire detection sensors which will annunciate fire

detection to the control center, as well as initiate a facility

shutdown to a fail-safe condition.

RSPA disagrees with ALT's rationale that water is unnecessary and

impractical at this facility. This LNG facility has two 50,000 gallon

capacity storage tanks, processors, liquefiers, compressors, and

piping. For protection of the above components and for controlling

unignited leaks and spills, RSPA believes that a fire protection water

system is necessary. From the information available to RSPA, it appears

that providing a water system at this facility is feasible. Therefore,

RSPA is not proposing to grant a waiver from Sec. 193.2817(b)(2).

Except for the sections for which RSPA is proposing to grant a

waiver, this LNG facility must meet all the other requirements of Part

193. For the sections for which RSPA proposes to grant a waiver, RSPA

believes that the granting of a waiver from these requirements would

not be inconsistent with pipeline safety, as long as ALT follows

alternative provisions in the NFPA 59A.

Interested parties are invited to comment on the proposed waiver by

submitting in duplicate such data, views, or arguments as they may

desire. Comments should identify the Docket and Notice number, and

should be addressed to the Docket facility, U.S. Department of

Transportation, Plaza 401, 400 Seventh Street SW., Washington, DC

20590-0001.

All comments received before September 30, 1997, will be considered

before final action is taken. Late filed comments will be considered so

far as practicable. No public hearing is contemplated, but one may be

held at a time and place set in a notice in the Federal Register if

requested by an interested person desiring to comment at a public

hearing and raising a genuine issue. All comments and other docketed

material will be available for inspection and copying in room 401 plaza

between the hours of 10:00 a.m. and 5 p.m., Monday through Friday,

except federal holidays.

Authority: 49 App. U.S.C. 2002(h) and 2015; and 49 CFR 1.53.

Issued in Washington, D.C. on July 30, 1997.

Cesar De Leon,

Deputy Associate Administrator for Pipeline Safety.

[FR Doc. 97-20468 Filed 8-1-97; 8:45 am]

BILLING CODE 4910-60-P