Pipeline Safety: Adoption of Industry Standards for Breakout Tanks

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 195

[Docket No. RSPA-97-2095; Notice 1]

RIN 2137-AC11

Pipeline Safety: Adoption of Industry Standards for Breakout

Tanks

AGENCY: Research and Special Programs Administration (RSPA),DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: This proposed rule would incorporate industry consensus

standards for aboveground storage tanks into the regulations for the

transportation of hazardous liquids by pipelines. This action would

upgrade the pipeline safety regulations for breakout tanks to the level

of the industry standards currently applicable to other steel petroleum

tanks at tank farms and refineries throughout the United States. The

proposed incorporation of these industry published standards would

ensure the safety of breakout tanks used in the transportation of

petroleum, petroleum products or anhydrous ammonia.

DATES: RSPA invites interested persons to submit comments by July 20,

1998. Late filed comments will be considered as far as practicable.

ADDRESSES: All commenters should identify the docket number as RSPA-97-

2095 and the subject heading as ``Pipeline Safety: Adoption of Industry

Standards for Breakout Tanks.'' Written comments should be mailed or

delivered to the Docket Facility, U.S. Department of Transportation,

Room #PL-401, 400 Seventh Street, SW, Washington, DC 20590-0001. The

original and two copies of the comments should be submitted. Persons

mailing comments and desiring confirmation of their receipt must

include a self-addressed stamped postcard. The Dockets Facility is open

from 10:00 a.m. to 5:00 p.m., Monday through Friday, except on Federal

holidays when the facility is closed. Comments may also be submitted

electronically via e-mail to [email protected]. Files should be

sent in ASCII or text format.

FOR FURTHER INFORMATION CONTACT: Albert C. Garnett, Office of Pipeline

Safety (OPS), telephone: (202) 366-2036, FAX: (202) 366-4566, e-mail:

[email protected] regarding the subject matter of this

notice; or the Docket Facility, telephone (800) 647-5527 regarding

copies of this notice or other material in the docket.

Comments that have been scanned into the docket may be accessed

electronically and read at http://dms.dot.gov. General information

about the RSPA/Office of Pipeline Safety programs can be obtained by

accessing OPS's internet homepage at http://ops.dot.gov.

SUPPLEMENTARY INFORMATION:

Background

Definition and Regulation of Breakout Tanks

In 49 CFR Sec. 195.2 a breakout tank is defined as a tank used to:

(a) relieve surges in a hazardous liquid pipeline system; or (b)

receive and store hazardous liquid transported by a pipeline for

reinjection and continued transportation by pipeline. Hazardous liquids

are defined in 195.2 as: petroleum, petroleum products, or anhydrous

ammonia.

Breakout tanks are designed, constructed, operated, and maintained

to the same industry standards as other storage tanks throughout the

petroleum industry. Consequently, breakout tanks are indistinguishable

from other storage tanks that may be located at the same pipeline

terminal. They are simply tanks that the operator has assigned to

breakout tank functions.

These steel storage tanks are constructed in various

configurations, sizes, and material properties to safely contain the

liquids and their volatility at the design temperature(s) and

pressure(s). Most breakout tanks are aboveground vertical cylindrical

tanks that are classified as either atmospheric

[[Page 27904]]

tanks or low-pressure tanks. However, liquefied petroleum gas (LPG) may

be stored at high-pressures in aboveground tanks with configurations

that are more similar to that of ASME Code pressure vessels.

Atmospheric Storage Tanks

Atmospheric storage tanks are those designed to operate their vapor

spaces at internal pressures that are approximately atmospheric (vapor

pressures not exceeding 2.5 psig). Atmospheric storage tanks are used

for commodities such as: crude oil, heavy oils, gas oils, furnace oils,

naphtha, gasoline, and nonvolatile chemicals. The roofs of atmospheric

storage tanks may take various forms.

An atmospheric cone-roof tank has roof plates that are supported by

internal rafters, purlins, columns, and by the top of the cylindrical

tank shell. An atmospheric umbrella-roof tank has roof plates formed

from curved segments that are completely supported by the top of the

cylindrical tank shell. When such fixed roof tanks are fitted with an

internal floating roof, the breathing and filling losses are minimized

by the elimination of the vapor space above the stored liquid.

Another type of atmospheric tank uses an external floating roof

that is also designed to minimize the breathing and filling losses by

the elimination of the vapor space above the stored liquid.

Occasionally, such an ``open-top'' external floating-roof tank is

retrofitted with an aluminum roof that is supported at the top of the

cylindrical tank shell. This aluminum fixed roof shields the (former

external) floating-roof and the stored hazardous liquid from the

adverse effects of severe rainfalls and snowfalls.

Low-Pressure Storage Tanks

Low-pressure tanks are those designed to operate their vapor spaces

at internal pressures above 2.5 psig, but not exceeding 15 psig. Low

pressure storage tanks are used for commodities such as: light crude

oils, some gasoline blending stocks, light naphtha, pentane, and some

highly volatile liquids.

There are several designs to withstand the vapor pressure that may

develop in low-pressure tanks. Tanks without a device or means to

change the internal volume (i.e., vary the vapor space above the stored

liquid) have hemispherical, spheroidal, and noded spheroidal

configurations to contain the stored liquid and vapor pressure. Other

roof designs accommodate the vapor pressure by providing a variable

vapor space above the stored liquid. Such tanks are described as

breather-roofs, balloon-roofs, and vapor-dome roofs.

High-Pressure Tanks

Breakout tanks used to contain pressures of at least 15 psig are

designed in accordance with the ASME Boiler and Pressure Vessel Code,

Pressure Vessels, Section VIII, Division 1 and 2. Such pressure tanks

with spherical or cylindrical (horizontal) configurations are often

used to store highly volatile liquids such as liquefied petroleum gas

(LPG). LPG includes propane, propylene, butanes (normal butane and

isobutane), and butylenes. Because of their configuration, tanks that

store LPG are commonly described as ``spheres'' and ``bullets''.

Number of Breakout Tanks

There are at least 9,000 breakout tanks in the United States. This

estimate is based on the results of an ``Aboveground Storage Tank

Survey'' conducted for the American Petroleum Institute (API) that were

presented in an April 1989 report. In that 1989 report, an estimated

9,197 breakout tanks were calculated to have a total capacity of

556,183,000 barrels. Approximately, 18% were over 100,000 barrels

capacity and 71% were estimated to have been constructed since 1948.

Breakout Tank Accident Reporting

Section 195.50 ``Reporting accidents.'' sets out the requirements,

including the threshold limits, for accidents to pipelines (includes

accidents to breakout tanks) that are to be reported to RSPA by the

operator.

Need To Adopt Industry Standards

The failure of a storage tank not associated with pipeline

transportation provided much of the incentive to improve industry

standards for aboveground steel storage tanks. On January 2, 1988, at a

barge terminal in Florefee, Pennsylvania, a newly recommissioned 120

ft. diameter by 48 ft. high storage tank suddenly collapsed and

released 3.9 million gallons of diesel oil. Although the earthen dike

contained most of the diesel oil, an estimated 750,000 gallons were

spilled into the Monongahela River and eventually flowed into the Ohio

River. Recovery was estimated at 27.3%.

The publicity and costly consequences of this failure caused

widespread concern about the safety of all aboveground storage tanks.

Responding to the aftermath of this event, petroleum industry engineers

instituted a review of the various industry published standards

applicable to aboveground storage tanks. These reviews resulted in

considerable updating of existing standards and the development of

several new standards by the American Petroleum Institute.

In the 10-year period from 1987-1996, operators of breakout tanks

reported 152 accidents to RSPA. These accidents caused no deaths; three

injuries to pipeline personnel; $12,422,894 of property damage; and

153,972 barrels to be spilled (of which 39,087 barrels were not

recovered). The three injuries occurred as a result of explosions. The

causes were reported as: 25 leaks in the tank floor; 30 incorrect

operations; 8 outside forces; and 26 malfunctions of control or relief

equipment. The remaining 63 were related to problems with floating roof

water drain lines, lightning, and miscellaneous other causes.

The pipeline safety regulations have not been revised to reflect

the updating and development of new industry standards for aboveground

steel storage tanks. Instead, they remain very limited in scope and too

general to address many safety-related aspects. For example, in

``Subpart C--Design Requirements'', the design of breakout tanks is set

out in a single sentence in Sec. 195.132, which reads: ``Each

aboveground breakout tank must be designed to withstand the internal

pressure produced by the hazardous liquid to be stored therein and any

anticipated external loads.'' This fails to spell out several critical

engineering subjects, such as materials, design, fabrication, erection,

methods of inspecting joints, welding procedure and welder

qualifications, and marking. Moreover, there is no mention of other

important topics including foundations, external floating roofs,

seismic design, aluminum dome roofs, internal floating roofs, undertank

leak detection and subgrade protection, and requirements for operating

at elevated temperatures. These topics are covered in detail in API

Standard 650--``Welded Steel Tanks for Oil Storage.'' In the pipeline

safety regulations for hazardous liquids, similar insufficiencies for

breakout tanks exist in ``Subpart D-Construction'', ``Subpart E-

Pressure Testing,'' and ``Subpart F-Operation and Maintenance.''

Consequently, RSPA recognizes the need to update the safety

regulations for breakout tanks. The most appropriate means of updating

is the incorporation by reference into Part 195 of selected industry

consensus standards. They are widely understood and have been

extensively implemented by the operators of breakout tanks.

[[Page 27905]]

Recommendations by Texas Transportation Institute

To obtain professional assistance in the selection of the industry

standards to be incorporated into the regulations for breakout tanks,

RSPA contracted with the Texas Transportation Institute (TTI) for

engineering support services. TTI is associated with Texas A&M

University at College Station, Texas. TTI's findings are contained in

their report titled--``Engineering Support Services For The Office Of

Pipeline Safety (Task 1) July 1997.''

TTI conducted a review of industry publications relating to the

aboveground steel storage tanks commonly used at petroleum pipeline

terminals. TTI engineers also visited 16 petroleum pipeline terminals

in six states. The terminals selected were geographically dispersed in

an effort to observe a sampling of the breakout tanks in the contiguous

48 states. The terminals were located in Newark, NJ; Baton Rouge, LA;

Tulsa, OK; Houston, Colorado City, Kermit, and McCamey, TX; Long Beach,

Morro Bay, Bakersfield and Concord, CA; and Superior, WI.

The 411 storage tanks observed at the 16 terminals had a storage

capacity of 47 million barrels. Along with their site-specific

observations, the TTI engineers noted that the majority of these

breakout tanks were built before 1950 [apparently, these 411 tanks were

constructed earlier than the estimated average age of the 9,147 tanks

reported under the heading ``Number of Breakout Tanks'' (above)] and

that all tanks built before 1936 were riveted. They also reported that

the general condition and appearance of the tanks was excellent.

Based on their literature review, discussions with terminal

personnel, and personal observations of the breakout tanks, the TTI

engineers recommended the incorporation by reference into 49 CFR Part

195 of six API Standards, four API Recommended Practices, and NAPA 30,

a Code published by the National Fire Protection Association. RSPA

sought the input of storage tank professionals representing the API on

these findings.

Pre-Notice Consultation

RSPA provided its stakeholders (i.e. operators of breakout tanks,

the petroleum industry and the general public) the opportunity to

provide early input on RSPA's intent to incorporate industry standards

for storage tanks through a series of meetings:

On January 29, 1997, in New Orleans, LA, at a public

meeting attended by representatives of both the pipeline industry and

environmental interests (public and government), a representative of

OPS presented the need for updating the breakout tank regulations and

announced the industry standards being considered for adoption into 49

CFR Part 195. (Notice of Public Hearing; Response Plans for Onshore Oil

Pipelines) (62 FR 2989; January 21, 1997).

On April 9, 1997, in San Diego, CA, at the 62nd API Spring

Refining Meeting, a representative of OPS advised fellow members of the

API Subcommittee on Pressure Vessels and Tanks of RSPA's plans to adopt

certain API aboveground tank standards and portions of NFPA 30.

On May 7, 1997, in Washington, DC, at its semi-annual

meeting, a representative of OPS made a similar presentation to the

Technical Hazardous Liquid Pipeline Safety Standards Committee and to

others at the open meeting (Meetings of Pipeline Safety Advisory

Committees) (62 FR 16212; April 4, 1997).

Consensus Standards Proposed To Be Incorporated By Reference

RSPA proposes to incorporate nine of the eleven TTI

recommendations. Not proposed for adoption is API Standard 2015--``Safe

Entry and Cleaning of Petroleum Storage Tanks, Planning and Managing

Tank Entry from Decommissioning Through Recommissioning''. Tank

cleaning is not covered under the pipeline safety regulations. The

potential hazards to personnel and the environment associated with tank

cleaning are covered under regulations issued by the Occupational

Health and Safety Administration (OSHA) and the Environmental

Protection Agency (EPA).

Also, not proposed for adoption is API Standard 2610--``Design,

Construction, Operation, Maintenance, and Inspection of Terminal & Tank

Facilities''. This standard is a compilation of industry knowledge,

information, and management practices for all relevant aspects of

terminal and tank operations aggregated into an overview document. It

was prepared to be an indexing standard and references some 145

documents that were prepared and published by a myriad of federal and

other national and international organizations. Consequently, API

Standard 2610 is too complex for inclusion in this rulemaking.

In addition to the nine TTI documents selected, RSPA proposes to

incorporate three additional documents: API Specification 12F--

``Specification for Shop Welded Tanks for Storage of Production

Liquids''; API Publication 2026--``Safe Descent Onto Floating Roofs of

Tanks in Petroleum Service''; and API Standard 2510--``Design and

Construction of LPG Installations.''

Section 195.3(c) currently lists the full title and edition of 18

publications incorporated by reference in Part 195. Now, this notice

would incorporate an additional five API Standards, one API

Specification, four API Recommended Practices, one API Publication, and

portions of NAPA 30.

API Standards, Specifications, Recommended Practices, Publications and

NAPA 30

In the preamble of this notice the term ``standard(s)'' has been

used generically to describe certain industry consensus documents

developed for aboveground steel petroleum storage tanks. More

specifically, the API standards selected for incorporation by reference

have been classified by API as Standards, Specifications, Recommended

Practices, and Publications. Similarly, NFPA 30 has been classified by

the NFPA as a Code. RSPA understands that these classifications have

been chosen to indicate the varying levels of prescriptiveness intended

by the publishers.

This proposal attempts to follow the intended level of

prescriptiveness between these Standards, Specifications, Codes,

Recommended Practices, and Publications. However, this proposal

provides clarification necessary for incorporation into Federal rules.

Accordingly, for this rulemaking, operators of breakout tanks would be

expected to comply with these industry classifications as follows:

Standard, Specification or Code--An operator would be

expected to comply with the provisions as though they were printed in

full in Part 195.

Recommended Practice--An operator would be expected to

follow the provisions unless the operator notes in the procedural

manual the reasons why compliance with all or certain provisions is not

necessary for the safety of a particular breakout tank or tanks.

Publication--These provisions provide guidelines, safety

practices and precautions for the operator's review and consideration

for inclusion in the procedural manual.

[[Page 27906]]

Documents 1 To Be Incorporated by Reference

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\1\ The descriptions of these documents are excerpted from

material in the introductory paragraphs and other parts and

appendices of the listed documents. They do not summarize all the

provisions in these documents.

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1. API SPECIFICATION 12F--Specification for Shop Welded Tanks for

Storage of Production Liquids, Eleventh Edition, November 1, 1994.

This specification covers materials, design, fabrication, and

testing requirements for aboveground shop-fabricated vertical,

cylindrical, closed top, welded steel breakout tanks for nominal

capacities of 90 to 750 barrels and internal pressures that are

approximately atmospheric.

This specification is designed to provide tanks for use in the

storage of crude petroleum and other liquids commonly handled and

stored by the oil production segment of the industry.

[However, these storage tanks are occasionally located on crude oil

pipeline systems and a few are known to be breakout tanks.]

This specification contains Appendices A through F. Appendix A

discusses tank bolting. Appendix B discusses normal venting. Appendix C

discusses emergency venting. Appendix D discusses walkways, stairways

and ladders. Appendix E discusses details of purchase order with the

manufacturer. Appendix F discusses the use of the API Monogram.

2. API STANDARD 620--Design and Construction of Large, Welded, Low-

Pressure Storage Tanks, Ninth Edition, February 1996 (Including Addenda

1 and 2)

This standard covers materials, design, fabrication, inspection and

testing, marking and pressure- and vacuum-relieving devices for large,

welded, low pressure carbon steel aboveground storage tanks (including

flat-bottom tanks) that have wall shapes that can be generated by a

contour around a single vertical axis of revolution. This standard is

applicable to tanks that are intended to: (a) hold or store liquids

with gases or vapors above their surface; or (b) hold or store gases or

vapors alone.

The tanks described in this standard are designed for metal

temperatures not greater than 250 deg.F and with pressures in their gas

or vapor spaces not more than 15 psig. This standard is applicable to

tanks installed in areas where the lowest recorded one-day mean

atmospheric temperature is -50 deg.F. [Although tanks designed to this

standard are more commonly found in other petroleum facilities, a few

are located on pipeline systems and known to be breakout tanks.]

The standard contains Appendices A through R. Appendix A discusses

definitions. Appendix B discusses use of materials not identified with

listed specifications. Appendix C discusses suggested practice

regarding foundations. Appendix D discusses suggested practice

regarding supporting structures. Appendix E discusses suggested

practice regarding attached structures (internal & external). Appendix

F discusses examples illustrating application of rules to various

design problems. Appendix G discusses considerations regarding

corrosion allowance and hydrogen-induced cracking. Appendix H discusses

recommended practice for use of preheat, post-heat, and stress relief.

Appendix I discusses suggested practice for peening. Appendix J

discusses technical inquiries. Appendix K discusses the suggested

practice for determining the relieving capacity required. Appendix L

discusses seismic design. Appendix M discusses recommended scope of

manufacturer's report. Appendix N discusses installation of pressure-

relieving devices. Appendix O discusses suggested practice regarding

installation of low-pressure tanks. Appendix P is blank and reserved

for future use. Appendix Q discusses low-pressure storage tanks for

liquefied hydrocarbon gases at temperatures between -60 deg.F and

-270 deg.F. Appendix R discusses low-pressure storage tanks for

refrigerated products at temperatures from +40 deg.F to -60 deg.F.

3. API STANDARD 650--Welded Steel Tanks for Oil Storage, Ninth Edition,

May 1993 (Including Addenda 1 through 4)

This standard covers material, design, fabrication, erection

(including inspection, testing & repairs), inspecting joints, welding

procedure and welding qualifications, and marking for vertical,

cylindrical, aboveground, closed- and open-top, welded steel storage

tanks in various sizes and capacities for internal vapor or gas

pressures approximating atmospheric pressure (not greater than 2.5 psig

or not exceeding the weight of the roof plates), except when designed

for tanks subject to seismic loading. This standard applies only to

tanks whose entire bottoms are uniformly supported and to tanks in

nonrefrigerated service that have a maximum operating temperature of

200 deg.F.

This standard contains Appendices A through P and Appendix S.

Appendix A discusses optional design for small tanks. Appendix B

discusses design and construction of foundations. Appendix C discusses

external floating roofs. Appendix D discusses submission of technical

inquiries. Appendix E discusses seismic design. Appendix F discusses

design for small internal pressures. Appendix G discusses structurally

supported aluminum dome roofs. Appendix H discusses internal floating

roofs. Appendix I discusses undertank leak detection and subgrade

protection. Appendix J discusses complete shop assembly of vertical

tanks not exceeding 20 feet in diameter. Appendix K discusses variable-

design-point method. Appendix L discusses data sheets for purchaser

when ordering and manufacturer when completing construction. Appendix M

discusses requirements for tanks operating at temperatures 200 deg.F to

500 deg.F. Appendix N discusses use of new or unused materials not

completely identified. Appendix O discusses under-bottom connections.

Appendix P discusses allowable external loads on tank shell openings.

Appendix S discusses austenitic stainless steel storage tanks.

4. API RECOMMENDED PRACTICE 651--Cathodic Protection of Aboveground

Petroleum Storage Tanks, Second Edition, Dec. 1997

The purpose of this recommended practice is to present procedures

and practices for achieving effective corrosion control on aboveground

storage tank bottoms through the use of cathodic protection. It

contains provisions for the application of cathodic protection to new

and existing storage tanks. Corrosion control methods based on chemical

control of the environment or the use of protective coatings are not

covered in detail.

The intent is to provide information and guidance specific to

aboveground steel storage tanks in hydrocarbon service. Specific

cathodic protection designs are not provided. Such designs should be

provided by a person thoroughly familiar with cathodic protection

practices.

5. API RECOMMENDED PRACTICE 652--Lining of Aboveground Petroleum

Storage Tank Bottoms, Second Edition, December 1997

This recommended practice presents procedures and practices for

achieving effective corrosion control in aboveground storage tanks by

application of tank bottom linings to both existing and new storage

tanks. In many cases, tank bottom linings have proven to be an

effective method of

[[Page 27907]]

preventing internal corrosion of steel tank bottoms.

The intent of this recommended practice is to provide information

and guidance specific to aboveground steel storage tanks in hydrocarbon

service. It is intended to serve only as a guide and detailed tank

bottom specifications are not included.

6. API STANDARD 653--Tank Inspection, Repair, Alteration, and

Reconstruction, Second Edition, December 1995 (Including Addenda 1 and

2)

This standard covers carbon and low alloy steel tanks built to API

Standard 650 or its predecessor Standard 12C. It provides minimum

requirements for maintaining the integrity of welded or riveted, non-

refrigerated, atmospheric pressure, aboveground storage tanks after

they have been placed in service. It covers the maintenance inspection,

repair, alteration, relocation and reconstruction of such tanks. It

discusses tank evaluation, brittle fracture considerations, inspection,

materials, design considerations for reconstruction, repair and

alteration, dismantling and reconstruction, examination and testing,

marking and record keeping.

The scope is limited to the tank foundation, bottom, shell,

structure, roof, attached appurtenances, and nozzles to the face of the

first flange, first threaded joint, or first welding-end connection.

Many of the design, welding, examination, and material requirements of

API Standard 650 can be applied in the maintenance inspection, rating,

repair, and alteration of in-service tanks. In case of an apparent

conflict between the requirements of API standard 653 and API Standard

650 or its predecessor Standard 12C, this standard shall govern for

tanks that have been placed in service.

This standard employs the principles of API Standard 650. However,

storage tank owners/operators, based on consideration of specific

construction and operating details, may apply this standard to any

steel tank constructed in accordance with a tank specification.

This standard covers the varied conditions which may occur in an

existing tank. When design and construction details are not given, and

are not available in the standard to which the tank was originally

constructed, then details that will provide a level of integrity equal

to the level provided by the current edition of API Standard 650 must

be used.

This standard contains Appendices A through E. Appendix A provides

a table listing past editions of API welded storage tank standards.

Appendix B discusses evaluation of tank bottom settlement. Appendix C

provides sample checklists for internal and external inspection of

tanks. Appendix D provides information and forms relating to the API

Authorized Inspector Certification Program. Appendix E discusses the

procedure for submission of technical inquiries.

7. API STANDARD 2000--Venting Atmospheric and Low-Pressure Storage

Tanks, Fourth Edition, September 1992

This standard covers the normal and emergency venting requirements

for liquid petroleum or petroleum products storage tanks and

aboveground and underground refrigerated storage tanks designed for

operation at pressures from vacuum through 15 psig (1.034 bar gauge).

Discussed in this standard are the causes of overpressure or vacuum,

determination of venting requirements, means of venting, selection,

installation, and maintenance of vents, and testing and marking of

relief devices. Detailed engineering studies of a particular tank and

its operating conditions may indicate that the appropriate venting

capacity for the tank is not the venting capacity estimated in

accordance with this standard. If a tank's operating conditions could

deviate from those used in developing this standard, detailed

engineering studies should be performed.

This standard contains Appendices A through C. Appendix A discusses

thermal venting and oil movement venting. Appendix B discusses the

basis of the emergency venting tables. Appendix C discusses the types

and operating characteristics of vents.

8. API RECOMMENDED PRACTICE 2003--Protection Against Ignitions Arising

out of Static, Lightning, and Stray Currents, Fifth Edition, December

1991

This recommended practice presents the current technology in the

fields of static electricity, lightning, and stray currents applicable

to the prevention of hydrocarbon ignition. The recommendations for

protection are based on research and practical experience in the

petroleum industry. Their use should lead to improved safety practices

and evaluations of existing installations and procedures.

This recommended practice contains Appendices A through D. Appendix

A discusses the fundamentals of static electricity. Appendix B

discusses the measurement and detection of static electricity. Appendix

C is a static ignition questionnaire developed to permit recording and

transmittal of circumstances involved in an ignition from static

electricity. Appendix D is a bibliography supporting restrictions given

in the text.

9. API PUBLICATION 2026--Safe Access/Egress Involving Floating Roofs of

Storage Tanks in Petroleum Service, Second Edition, April 1998

This publication addresses the hazards associated with access/

egress onto open-top, covered open-top and internal floating roofs of

in-service petroleum storage tanks and identifies some of the most

common practices and procedures for safely accomplishing this activity.

This publication is intended primarily for those persons who are

required to perform inspection, service, maintenance or repair

activities that involve descent onto floating roofs of in-service

petroleum tanks.

This publication does not cover general considerations that apply

to climbing onto petroleum storage tanks and other structures,

including, but not limited to: (a) slippery or ice-covered stairways

and walkways, (b) access during electrical storms, and (c) access

during emergency conditions (such as to extinguish a fire or cover

exposed product with foam). This publication may not apply to daily or

routine tasks of tank gaugers and other personnel involved in non-

permit confined spaces; however, such persons shall be trained and

shall be made aware of the potential hazards described herein.

Preparations and precautions for entering petroleum storage tanks

that have been removed from service for cleaning are covered in API

Standard 2015.

10. API RECOMMENDED PRACTICE 2350--Overfill Protection for Storage

Tanks in Petroleum Facilities, Second Edition, Jan. 1996

Preventing petroleum storage tanks from being overfilled is an

important safety and environmental concern. The safe operation of a

petroleum storage facility is dependent upon the receipt of product

into the intended storage tank within its defined capacity. Aboveground

storage tank overfills can be effectively reduced by developing and

implementing practical and safe operating procedures for storage

facilities and by providing for careful selection of equipment,

scheduled maintenance programs, and employee training.

Recognizing the need for flexibility, this recommended practice

covers both manual procedures and automatic

[[Page 27908]]

systems that can be used to protect against overfills.

This recommended practice contains Appendices A through C. Appendix

A discusses overfill protection system installation. Appendix B

discusses determination of tank capacity and product levels. Appendix C

discusses overfill protection equipment.

11. API STANDARD 2510--Design and Construction of LPG Installations,

Seventh Edition, May 1995.

This standard is written to cover the design, construction, and

location of liquefied petroleum gas (LPG) installations at pipeline

terminals, tank farms, and at other facilities specified in the

standard. The standard is written for LPG tanks with pressures in their

gas or vapor spaces greater than 15 psig.

However, for the purposes of this rulemaking only the sections

relating to: the design and construction of LPG tanks; spill

containment; tank foundations and supports; and tank accessories

including pressure-and vacuum-relieving devices, are proposed for

incorporation by reference into Part 195.

This standard is not intended to apply to the design, construction,

or relocation of frozen earth pits, underground storage caverns or

wells, underground or mounded storage tanks, and aboveground concrete

storage tanks. Moreover, this standard also is not intended to apply to

the following installations:

a. Those covered by API Standard 2508--``Design and Construction of

Ethane and Ethylene Installations at Marine and Pipeline Terminals,

Natural Gas Processing Plants, Refineries, Petrochemical Plants, and

Tank Farms''. [API lists this standard as Out-of-Print.]

b. Those covered by NFPA 58--``Storage and Handling of Liquefied

Petroleum Gases'; and NFPA 59--``Storage and Handling of Liquefied

Petroleum Gases at Utility Gas Plants''.

c. U.S. Department of Transportation (DOT) containers.

d. Gas utility company facilities; refinery equipment; gas

processing equipment; and transfer systems from process equipment

before LPG storage.

e. Tanks with less than 2,000 gallons of storage capacity.

This standard contains Appendix A. Appendix A discusses Piping,

Valves, Fittings, and Optional Equipment.

12. NFPA 30--Flammable and Combustible Liquids Code, 1996 Edition.

NFPA Code 30 applies to the storage, handling and use of flammable

liquids and combustible liquids. Such liquids are defined and

classified in Chapter 1 ``General Provisions''. In Section 1-7.3.1

``Flammable Liquids'', liquids are classified as ``Class I liquids'' by

laboratory procedures that determine their closed-cup flash point and

their Reid vapor pressure. In Section 1-7.3.1 such ``Class I liquids''

may be further classified as Class IA liquids, Class IB liquids, or

Class IC liquids.

In Chapter 2 ``Tank Storage'', Section 2-3.4.3 applies to

impounding around tanks by diking. In this section the impounded

liquids are identified as ``Class I liquids''. Although the great

majority of hazardous liquids stored in breakout tanks are ``Class I

liquids'', that term is not used in part 195. Therefore, for the

purposes of adopting Section 2-3.4.3 into part 195, the term ``Class I

liquids'' must be replaced by ``hazardous liquids'.

Section 2-3.4.3 Impounding Around Tanks by Diking

Describes the protection of adjoining property or waterways by

diking around aboveground storage tanks.

Section 2-3.4.2 Remote Impounding

Describes the protection of adjoining property or waterways by

drainage to a remote impounding area, so that the impounded liquid will

not be held against the aboveground storage tanks.

Regulatory Analyses and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

The Department of Transportation (DOT) does not consider this

action to be a significant regulatory action under Section 3(f) of

Executive Order 12866 (58 FR 51735; October 4, 1993) and was not

reviewed by the Office of Management and Budget. DOT does not consider

this action significant under DOT's regulatory policies and procedures

(44 FR 11034; February 26, 1979).

This NPRM would amend the regulations for breakout tanks to include

the incorporation by reference of certain of the latest industry

published standards for aboveground storage tanks. The adoption of

industry standards is consistent with the President's goal of

regulatory reinvention and improvement of customer service to the

American people. There is minimal or no cost for operators of breakout

tanks to comply with this rule because these consensus standards have

been developed and implemented by industry organizations to ensure the

safety of aboveground petroleum storage tanks.

The proposed standards for steel storage tanks were specifically

developed by the API. API is the major petroleum industry trade

organization and many of its members are operators of petroleum

pipelines with tank farms. Additionally, the proposed standard for

secondary containment is taken from an NFPA code that is a widely used

industry standard for the design of diking (containment by impounding)

for aboveground storage tanks. The NFPA is an association with a

membership of more than 67,000 individuals and over 100 national trade

and professional organizations. Its mission is to reduce the burden of

fire on the quality of life by advocating scientifically based

consensus codes and standards, research, and education for fire and

safety issues.

The operators of breakout tanks storing hazardous liquids are very

familiar with these API storage tank and NFPA diking standards because

they have been extensively implemented at pipeline terminals throughout

the United States. Conversations with an industry storage tank

organization representing medium and smaller operators of breakout

tanks confirm that most of their members are already complying with the

proposed tank standards. Because the economic impact of this proposal

is minimal, the incorporation by reference of these industry published

standards does not warrant preparation of a Regulatory Evaluation.

For several years, OMB Circular A-119, ``Federal Participation in

the Development and Use of Voluntary Standards'', encouraged, but did

not require, agencies to participate in consensus standards bodies and

to adopt voluntary consensus standards whenever possible. The National

Technology Transfer and Advancement Act of 1995 (NTTAA, Pub. L. 104-

113) codified and expanded the participation and reporting requirement

of OMB Circular A-119. Federal agencies and departments are now

required to use technical standards that are developed and adopted by

voluntary consensus bodies, where practicable. RSPA's proposed adoption

of the API and NFPA standards for petroleum storage tanks meets the

goals and requirements set forth in both OMB Circular A-119 and NTTAA.

B. Regulatory Flexibility Act

As discussed above, RSPA is proposing the incorporation of

consensus standards that were developed and published by authoritative

organizations associated with the petroleum industry. Consequently,

these safety standards are well known and have been

[[Page 27909]]

implemented by operators of aboveground storage tanks at hazardous

liquid pipeline terminals throughout the United States. RSPA has had

conversations with an operators' association representing these tank

farms and with other persons and those parties do not expect this

proposal to have a significant economic impact on the smaller operators

of breakout tanks. Nonetheless, RSPA is particularly interested in

receiving comments from any small business operators believing

otherwise.

Moreover, in the event that some operators of breakout tanks have

not yet implemented all the safety-related items in these industry

developed standards, the regulations proposed in this notice would

allow operators 18 months for compliance after the date of publication

the final rule.

Therefore, based on the facts available which indicate the

anticipated minimal impact of this rulemaking action, I certify,

pursuant to Section 605 of the Regulatory Flexibility Act (5 U.S.C.

605), that this rulemaking action will not have a significant economic

impact on a substantial number of small entities.

C. Federal Assessment

The proposed rulemaking action would not have substantial direct

effects on states, on the relationship between the federal government

and the states, or on the distribution of power and responsibilities

among the various levels of government. Therefore, in accordance with

the Executive Order 12612 (52 FR 41685; Oct. 30, 1987), RSPA has

determined that the action does not have sufficient federalism

implications to warrant preparation of a Federalism Assessment.

D. Unfunded Mandates

This proposed rule does not impose unfunded mandates under the

Unfunded Mandates Reform Act of 1995. It does not result in costs of

over $100 million or more 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 rule.

E. Paperwork Reduction Act

The proposed API Standard 653 includes sample checklists, provided

for the operators periodic inspection of welded or riveted, non-

refrigerated, atmospheric pressure, aboveground steel storage tanks.

The checklists identify the tank components and auxiliary items that

should be considered for inspection and provides blank spaces for

insertion of the inspection date and notation of the inspector's

comments (if any). The use of the checklists improves the effectiveness

and minimizes the paperwork burden associated with the existing

inspection requirements in 49 CFR Section 195.432. This API standard

has been published for several years and during that time it has been

available to all operators of petroleum storage tanks (i.e. refinery,

marketing, production and pipeline).

For the API Recommended Practices referred to in this rulemaking,

it is stated that the operator would be expected to follow the

provisions unless the operator notes in the procedural manual the

reasons why compliance with all or certain provisions is not necessary

for the safety of a particular breakout tank or tanks. Each operator's

procedural manual already requires the inclusion and updating of

similar safety-related procedures and practices, so that such

annotation is consistent with the long standing function of the

procedural manual. Moreover, most operators already follow the API

Recommended Practices that are proposed for adoption and would not need

to make such an annotation in the procedural manual.

Therefore, there is no additional burden and no paperwork analysis

is required for this proposal.

List of Subjects in 49 CFR Part 195

Carbon dioxide, Incorporation by reference, Hazardous liquids,

Petroleum, Pipeline safety, Reporting and recordkeeping requirements.

In consideration of the foregoing, RSPA proposes to amend Part 195

of title 49 of the Code of Federal Regulations as follows:

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE [AMENDED]

1. The authority citation for Part 195 continues to read as

follows:

Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60118;

and 49 CFR 1.53.

2. Section 195.3 would be amended by adding paragraphs

(b)(7),(c)(2)(iv) through (c)(2)(xiv), and (c)(6) and revising

paragraph (c)(3)(v) to read as follows:

Sec. 195.3 Matter incorporated by reference.

* * * * *

(b) * * *

(7) National Fire Protection Association (NFPA), 1 Batterymarch

Park, P.O. Box 9101, Quincy, MA 02269-9101.

(c) * * *

(2) * * *

(iv) API Specification 12F ``Specification for Shop Welded Tanks

for Storage of Production Liquids'' (Eleventh Edition, November 1,

1994).

(v) API Standard 620 ``Design and Construction of Large, Welded,

Low-Pressure Storage Tanks'' (Ninth Edition, February 1996, Including

Addenda 1 and 2).

(vi) API Standard 650 ``Welded Steel Tanks for Oil Storage'' (Ninth

Edition, February 1996 (Including Addenda 1 through 4).

(vii) API Recommended Practice 651 ``Cathodic Protection of

Aboveground Petroleum Storage Tanks'' (Second Edition, Dec. 1997).

(viii) API Recommended Practice 652 ``Lining of Aboveground

Petroleum Storage Tanks Bottoms'' (Second Edition, December 1997).

(ix) API Standard 653 ``Tank Inspection, Repair, Alteration, and

Reconstruction'' (Second Edition, December 1995 (Including Addenda 1

and 2).

(x) API Standard 2000 ``Venting Atmospheric and Low-Pressure

Storage Tanks'' (Fourth Edition, September 1992).

(xi) API Recommended Practice 2003 ``Protection Against Ignitions

Arising out of Static, Lightning, and Stray Currents' (Fifth Edition,

December 1991).

(xii) API Publication 2026 ``Safe Access/Egress Involving Floating

Roofs of Storage Tanks in Petroleum Service'' (Second Edition, April

1998).

(xiii) API Recommended Practice 2350 ``Overfill Protection for

Storage Tanks In Petroleum Facilities'' (Second Edition, January 1996).

(xiv) API Standard 2510 ``Design and Construction of LPG

Installations'' (Seventh Edition, May 1995).

* * * * *

(3) * * *

(v) ASME Boiler and Pressure Vessel Code, Section VIII ``Pressure

Vessels,'' Division 1 and 2. (1995 edition with 1995 Addenda).

* * * * *

(6) National Fire Protection Association (NFPA):

(i) ANSI/NFPA 30 ``Flammable and Combustible Liquids Code,''

(1996).

(ii) [Reserved]

3. Section 195.132 would be revised to read as follows:

Sec. 195.132 Design and construction of breakout tanks.

(a) Breakout tanks must be designed and constructed to withstand

the internal pressure produced by the hazardous liquid to be stored

therein and any anticipated external loads.

(b) For aboveground breakout tanks first placed in service on or

after [18

[[Page 27910]]

months after date of publication of final rule], compliance with

paragraph (a) of this section requires one of the following:

(1) Shop-fabricated, vertical, cylindrical, closed top, welded

steel tanks with nominal capacities of 90 to 750 barrels (14.3 to 119.2

m3) and internal pressures that are approximately

atmospheric must be designed and constructed in accordance with API

Specification 12F.

(2) Welded, low-pressure (i.e., internal vapor space not greater

than 15 psig (103.4 kPa)), carbon steel tanks that have wall shapes

that can be generated by a single vertical axis of revolution must be

designed and constructed in accordance with API Standard 620.

(3) Vertical, cylindrical, welded steel tanks with pressures

approximating atmospheric pressures (i.e., internal vapor pressures not

greater than 2.5 psig (17.2 kPa), or not greater than the weight of the

roof plates) must be designed and constructed in accordance with API

Standard 650.

(4) High pressure steel tanks (i.e., pressures in their gas or

vapor space greater than 15 psig (103.4 kPa)) with a nominal capacity

of 2000 gallons (7571 liters) or more of liquefied petroleum gas (LPG)

must be designed and constructed in accordance with API Standard 2510.

4. Section 195.205 would be added to read as follows:

Sec. 195.205 Repair, alteration and reconstruction of breakout tanks

that have been in service.

(a) Breakout tanks that have been repaired, altered, or

reconstructed and returned to service must be capable of withstanding

the internal pressure produced by the hazardous liquid to be stored

therein and any anticipated external loads.

(b) On or after [18 months after date of publication of final

rule], compliance with paragraph (a) of this section requires the

following for the aboveground breakout tanks specified:

(1) For atmospheric pressure tanks constructed of carbon and low

alloy steel, welded or riveted, and non-refrigerated and others (such

as those built to API Standard 650 or its predecessor Standard 12C),

repair, alteration, and reconstruction must be in accordance with API

Standard 653.

(2) For tanks built to API Specification 12F, API Standard 620, or

API Standard 2510, the repair, alteration, and reconstruction, must be

in accordance with those respective standards.

5. Section 195.242 would be amended by adding paragraphs (c) and

(d) to read as follows:

Sec. 195.242 Cathodic protection system.

* * * * *

(c) For the bottoms of aboveground breakout tanks, with greater

than 500 barrels (79.5 m\3\) capacity, built to API Specification 12F,

API Standard 620, and others (such as API Standard 650 or its

predecessor Standard 12C), the installation of a cathodic protection

system under paragraph (a) of this section on or after [18 months after

date of publication of final rule] must be in accordance with API

Recommended Practice 651, unless the operator notes in the procedural

manual (Sec. 195.402(c)) why compliance with all or certain provisions

of API Recommended Practice 651 is not necessary for the safety of a

particular breakout tank.

(d) For the internal bottom of aboveground breakout tanks, built to

API Specification 12F, API Standard 620 and others (such as API

Standard 650 or its predecessor Standard 12C), the installation of a

tank bottom lining on or after [18 months after date of publication of

final rule] must be in accordance with API Recommended Practice 652,

unless the operator notes in the procedural manual (Sec. 195.402(c))

why compliance with all or certain provisions of API Recommended

Practice 652 is not necessary for the safety of a particular breakout

tank.

6. Section 195.264 would be revised to read as follows:

Sec. 195.264 Secondary containment, protection against entry, normal/

emergency venting or pressure/vacuum relief for aboveground breakout

tanks.

(a) A means must be provided for containing hazardous liquids in

the event of spillage or failure of an aboveground breakout tank.

(b) On or after [18 months after date of publication of final

rule], compliance with paragraph (a) of this section requires the

following for the aboveground breakout tanks specified:

(1) For tanks built to API Specification 12F, API Standard 620, and

others (such as API Standard 650 or its predecessor Standard 12C), the

installation of secondary containment must be in accordance with the

following sections of NFPA 30:

(i) Secondary containment by impounding around a breakout tank must

be installed in accordance with Section 2-3.4.3 ``Impounding around

Tanks by Diking'', except that ``hazardous liquids'' must be

substituted for the term ``Class I liquids'' wherever that term appears

in Section 2-3.4.3; and

(ii) Secondary containment by drainage to a remote impounding area

must be installed in accordance with Section 2-3.4.2 ``Remote

Impounding.''

(2) For tanks built to API Standard 2510, the installation of

secondary containment must be in accordance with Sections 3 or 9 of API

Standard 2510.

(c) Breakout tank areas must be adequately protected against

unauthorized entry.

(d) Normal/emergency relief venting must be provided for each

atmospheric pressure breakout tank. Pressure/vacuum-relieving devices

must be provided for each low-pressure and high-pressure breakout tank.

(e) For normal/emergency relief venting and pressure/vacuum-

relieving devices installed on aboveground breakout tanks on or after

[18 months after date of publication of final rule], compliance with

paragraph (d) of this section requires the following for the tanks

specified:

(1) Normal/emergency relief venting installed on atmospheric

pressure tanks built to API Specification 12F must be in accordance

with Section 4, and Appendices B and C, of API Specification 12F.

(2) Normal/emergency relief venting installed on atmospheric

pressure tanks (such as those built to API Standard 650 or its

predecessor Standard 12C) must be in accordance with API Standard 2000.

(3) Pressure-relieving and emergency vacuum-relieving devices

installed on low pressure tanks built to API Standard 620 must be in

accordance with Section 7 of API Standard 620 and its references to the

normal and emergency venting requirements in API Standard 2000.

(4) Pressure and vacuum-relieving devices installed on high

pressure tanks built to API Standard 2510 must be in accordance with

Sections 5 or 9 of API Standard 2510.

7. Section 195.305 would be added to read as follows:

Sec. 195.305 Pressure testing breakout tanks.

(a) For breakout tanks built to API Specification 12F and first

placed in service on or after [18 months after date of publication of

final rule], pneumatic testing must be in accordance with Section 5.3

of API Specification 12F.

(b) For breakout tanks built to API Standard 620 and first placed

in service on or after [18 months after date of publication of final

rule], hydrostatic and pneumatic testing must be in accordance with

Section 5.18 of API Standard 620.

(c) For breakout tanks built to API Standard 650 and first placed

in service

[[Page 27911]]

on or after [18 months after date of publication of final rule],

hydrostatic and pneumatic testing must be in accordance with Section

5.3 of API Standard 650.

(d) For atmospheric pressure breakout tanks constructed of carbon

and low alloy steel, welded or riveted, and non-refrigerated and others

(such as those that were built to API Standard 650 or its predecessor

Standard 12C), that are returned to service on or after [18 months

after date of publication of final rule], the necessity for the

hydrostatic testing of repair, alteration, and reconstruction is

covered in Section 10.3 of API Standard 653.

(e) For breakout tanks built to API Standard 2510 and first placed

in service on or after [18 months after date of publication of final

rule], pressure testing must be in accordance with ASME Boiler and

Pressure Vessel Code, Section VIII, Division 1 or 2.

8. Section 195.405 would be added to read as follows:

Sec. 195.405 Protection against ignitions and safe access/egress

involving floating roofs.

(a) Protection provided on or after [18 months after date of

publication of final rule] against ignitions arising out of static

electricity, lightning, and stray currents during operation and

maintenance activities involving aboveground breakout tanks, must be in

accordance with API Recommended Practice 2003, unless the operator

notes in the procedural manual (Sec. 195.402(c)) why compliance with

all or certain provisions of API Recommended Practice 2003 is not

necessary for the safety of a particular breakout tank.

(b) The hazards associated with access/egress onto floating roofs

of in-service breakout tanks to perform inspection, service,

maintenance or repair activities (other than specified general

considerations, specified routine tasks or entering tanks removed from

service for cleaning) are addressed in API Publication 2026. On or

after [18 months after date of publication of final rule] the operator

must review and consider the potentially hazardous conditions, safety

practices and procedures in API Publication 2026 for inclusion in the

procedure manual (Sec. 195.402(c)).

9. Section 195.416 would be amended by adding paragraph (j) to read

as follows:

Sec. 195.416 External corrosion control.

* * * * *

(j) For breakout tanks where corrosion of the tank bottom is

controlled by a cathodic protection system, the cathodic protection

system must be inspected to ensure it is operated and maintained in

accordance with API Recommended Practice 651, unless the operator notes

in the procedure manual (Sec. 195.402(c)) why compliance with all or

certain provisions of API Recommended Practice 651 is not necessary for

the safety of a particular breakout tank.

10. Section 195.428 would be amended by revising the title and by

adding paragraphs (c), (d) and (e) to read as follows:

Sec. 195.428 Overpressure safety devices and overfill protection

systems.

* * * * *

(c) Except as provided in paragraph (d) of this section,

aboveground breakout tanks must have an overfill protection system in

accordance with API Recommended Practice 2350, on or after [18 months

after date of publication of final rule], unless the operator notes in

the procedural manual (Sec. 195.402(c)) why compliance with all or

certain provisions of API Recommended Practice 2350 is not necessary

for the safety of a particular breakout tank. However, API Recommended

Practice 2350 does not apply to tanks with less than 600 gallons (2271

liters) of storage capacity.

(d) Breakout tanks that were built to API Standard 2510 must have

an overfill protection system in accordance with Section 5.1.2 of API

Std. 2510 on or after [18 months after date of publication of final

rule].

(e) The inspection and testing of each overfill protection system

on or after [18 months after date of publication of final rule] must be

in accordance with the requirements for inspection and testing of

pressure control equipment in paragraphs (a) and (b) of this section.

11. Section 195.432 would be revised to read as follows:

Sec. 195.432 Inspection of in service Breakout tanks.

(a) Each operator shall, at intervals not exceeding 15 months, but

at least once each calendar year, inspect each breakout tank (including

atmospheric and pressure tanks).

(b) On or after [18 months after date of publication of final

rule], compliance with paragraph (a) of this section for the inspection

of the breakout tanks specified requires the following:

(1) For tanks that are constructed of carbon and low alloy steel,

welded or riveted, and non-refrigerated (such as atmospheric tanks

built to API Standard 650 or its predecessor Standard 12C), the

integrity inspection must be in accordance with Section 4 of API

Standard 653.

(2) [Reserved].

Issued in Washington, DC on May 15, 1998.

Richard B. Felder,

Associate Administrator for Pipeline Safety.

[FR Doc. 98-13579 Filed 5-20-98; 8:45 am]

BILLING CODE 4910-60-P