Pipeline Safety: Incorporation by Reference of Industry Standard on Leak Detection

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 195

[Docket No. RSPA-97-2362; Amdt. 195-62]

RIN 2137--AD05

Pipeline Safety: Incorporation by Reference of Industry Standard

on Leak Detection

AGENCY: Research and Special Programs Administration (RSPA).

ACTION: Final rule.

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SUMMARY: This rule adopts as a referenced document an industry

publication for pipeline leak detection, API 1130, ``Computational

Pipeline Monitoring,'' published by the American Petroleum Institute

(API). This rule requires that an operator of a hazardous liquid

pipeline use API 1130 in conjunction with other information, in

designing, evaluating, operating, maintaining, and testing its

software-based leak detection system. The use of this document will

significantly advance the acceptance of leak detection technology on

hazardous liquid pipelines. However, this rule does not require

operators to install such systems.

DATES: This final rule takes effect July 6, 1999.

FOR FURTHER INFORMATION CONTACT: Lloyd W. Ulrich, telephone: (202) 366-

4556, FAX: (202) 366-4566, e-mail: [email protected] regarding

the subject matter of this final rule, or Dockets Unit, (202) 366-4453,

for copies of this final rule or other material in the docket. Further

information can be obtained by accessing OPS' Internet Home Page at:

ops.dot.gov.

SUPPLEMENTARY INFORMATION:

I. Background on Requiring Leak Detection Equipment

A. Congressional Mandate To Issue Regulations

Congress, in section 212 of the Pipeline Safety Act of 1992

(codified at 49 U.S.C. 60102(j)), required the Secretary of

Transportation, by October 24, 1994, to survey and assess the

effectiveness of emergency flow restricting devices (EFRDs) and other

procedures, systems, and equipment used to detect and locate hazardous

liquid pipeline ruptures and minimize product releases from hazardous

liquid pipeline facilities. Congress further mandated that the

Secretary issue regulations two years after completing the survey and

assessment (no later than October 24, 1996). These regulations would

prescribe the circumstances under which hazardous liquid pipeline

operators would use EFRDs or other procedures, systems, and equipment

used to detect and locate pipeline ruptures and minimize product

releases from pipeline facilities. The Secretary delegated this

authority to the Research and Special Programs Administration (RSPA).

B. Advance Notice of Proposed Rulemaking, Volpe Center Report and

Public Workshop

RSPA used several means to gather information on EFRDs and leak

detection equipment. We issued an advance notice of proposed rulemaking

(ANPRM) (59 FR 2802, Jan. 19, 1994) to solicit information primarily

from hazardous liquid pipeline operators about operational data and

costs related to EFRDs and about the performance of leak detection

systems to detect and locate hazardous liquid pipeline ruptures and

minimize product release. The ANPRM also sought information to help

determine which critical pipeline locations should be protected from

product releases. Commenters provided limited usable data and generally

opposed requiring leak detection equipment and EFRDs.

We contracted with the Volpe National Transportation Systems Center

(Volpe Center) to conduct a research study on SCADA 1

systems, including leak detection systems. Its report, ``Remote Control

Spill Reduction Technology: A Survey and Analysis of Applications for

Liquid Pipeline Systems'' (September 29, 1996), found that because of

the pipeline industry's diversity, each system used for leak detection

must be custom configured for a particular pipeline system, that SCADA

and leak detection systems were dependent on the sophistication of the

host computer and how rapidly and diverse remote field data can be

collected, and that operators have invested in SCADA systems, but have

invested much less in software-based leak detection systems.

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\1\ SCADA is an acronym for Supervisory Control and Data

Acquisition. SCADA systems utilize computer technology to

continuously gather data (e.g., pressure, temperature, and delivery

flow rates) from remote locations on the pipeline. Dispatchers use

SCADA systems to assist in day-to-day operating decisions on the

pipeline. SCADA systems can also provide input for real-time models

of the pipeline operation. Such models compare current operating

conditions with calculated data values. A deviation may indicate the

possibility of a leak.

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RSPA also held a public workshop on October 19, 1995, to obtain

more data on EFRDs and leak detection systems. Participants confirmed

the Volpe Center report's finding that each leak detection system is

unique to the pipeline on which it is installed. Discussions included

operational and economic problems with leak detection systems, as well

as their operational, economic and environmental benefits.

Detailed discussion of the ANPRM, Volpe Center report, and workshop

can be found at 62 FR 56141; October 29, 1997.

C. Development of API 1130

In 1994, the API formed a task force to develop a document on

computational pipeline monitoring (CPM). The task force produced API

1130, entitled ``Computational Pipeline Monitoring,'' which addressed

the use of software-based leak detection equipment. API 1130 defines

computational pipeline monitoring as ``an algorithmic monitoring tool

that allows the pipeline controller to respond to a pipeline operating

anomaly which may be indicative of a commodity release.'' The

document's stated purpose is to assist the pipeline operator in

selecting, implementing, testing, and operating a CPM system, and to

help to identify the complexities, limitations, and other implications

of detecting anomalies on liquid pipelines using CPM systems.

RSPA and the Volpe Center staff monitored the task force's work.

Minutes of the task force meetings, and copies of final drafts of API

1130, are available in Docket No. PS-133.

D. Definition of Areas Unusually Sensitive to Environmental Damage

Congress required that in prescribing standards, RSPA identify the

circumstances where EFRDs and other equipment must be installed. RSPA's

current policy is to base regulations on risk assessment. We believe

that a

[[Page 36374]]

primary high risk circumstance would be where a pipeline is located in

an environmentally sensitive area.

RSPA has been conducting public workshops since 1995 to identify a

subset of environmentally sensitive areas, areas unusually sensitive to

environmental damage, or USAs. Because of this ongoing regulatory

effort to define USAs and the definition's relevance to locating EFRDs,

RSPA has decided to wait before proposing a rule prescribing where leak

detection systems would be required.

E. First Step

Although RSPA has delayed proposing the circumstances where EFRDs

and other equipment must be installed on hazardous liquid pipeline

systems until it has an USA definition, RSPA did not want to delay

addressing the safety and environmental advantages of using software-

based leak detection technology to reduce releases from pipeline

ruptures.

Pipeline safety regulations do not require hazardous liquid

pipeline operators to meet any leak detection system performance

standards. Thus, as a first step in RSPA's statutory requirement to

issue regulations prescribing where hazardous liquid pipeline operators

would use EFRDs or other leak detection systems, RSPA considered

adopting API 1130. RSPA would adopt API 1130 and require operators to

use it in operating, maintaining, and testing their existing software-

based leak detection systems and in designing and installing new

software-based leak detection systems or replacing components of

existing systems. RSPA considered this action because--

(1) We monitored the development of API 1130 and its development is

well documented in Docket No. PS-133. The API task force members who

developed API 1130 are experts in the pipeline industry, well versed in

leak detection systems.

(2) API 1130 is a comprehensive document that advances safety by

providing for more rapid detection of ruptures and response to those

ruptures, limiting releases of hazardous liquids.

(3) Adopting API 1130 complies with the spirit of the President's

initiative to reduce and simplify regulations by adopting industry-

developed standards. Its adoption would not be controversial because

the pipeline industry, the primary user, developed the publication.

F. Role of the Technical Hazardous Liquid Pipeline Safety Standards

Committee (THLPSSC)

We proposed adopting API 1130 as a referenced document in the

pipeline safety regulations to the THLPSSC at its meeting on November

6, 1996. The THLPSSC is a 15-member Congressionally mandated advisory

committee (49 U.S.C. 60115) responsible for reviewing proposed pipeline

safety standards for technical feasibility, reasonableness, and

practicability. The THLPSSC Chairperson appointed a three-person

subcommittee to work with RSPA to provide technical expertise on the

feasibility of adopting API 1130. The subcommittee submitted to the

THLPSSC Chairperson several recommendations, which THLPSSC accepted:

(1) API 1130 in its entirety should be referenced in the 49 CFR

Part 195 regulations.

(2) The operations, maintenance, and testing portions of API 1130

should apply to all existing and newly-installed CPM systems, and API

1130 in its entirety should apply to all newly installed CPM systems

and replacement sections of existing CPM systems.

(3) Compliance with API 1130 should be within twelve months of

incorporation of the document into the regulations.

(4) The document should apply only to single phase liquid pipelines

(see Section 1.3 of API 1130, which limits the document's application

to single phase liquid pipelines).

(5) The preamble to the draft and final rule should state that

referencing API 1130 is a first step in meeting the requirements of 49

U.S.C. 60102(j), and is not intended to delay issuing additional

requirements or actions.

II. Notice of Proposed Rulemaking (NPRM)

A. Proposal

RSPA published an NPRM on October 29, 1997 (62 FR 56141) proposing

to incorporate API 1130 into the regulations as a referenced document.

The NPRM incorporated THLPSSC's recommendations. The rule proposed

requiring an operator of a hazardous liquid pipeline to comply with API

1130 in designing, operating, maintaining, and testing the operator's

software-based leak detection system. The proposed rule did not require

an operator to install a software-based leak detection system, but

proposed that whenever such a leak detection system is installed or a

component replaced, API 1130 would have to be followed. Similarly, each

existing software-based leak detection system would have to comply with

the operating, maintenance, testing, and training provisions of API

1130.

To be consistent with API 1130's scope limitations (Section 1.3),

the NPRM limited API 1130's applicability to single-phase liquid

pipelines. Pipelines transporting both gas and liquid simultaneously,

called dual phase pipelines, are prevalent in offshore operations. A

pipeline transports gas and liquid to onshore facilities, where it is

more economical to separate the gas and liquid for further transport.

Designing a leak detection system for such a pipeline is extremely

complex because of the different physical and chemical characteristics

of gases and liquids.

The NPRM's comment period closed on December 29, 1997.

B. Discussion of the Comments

Three comments were filed in the docket: two from hazardous liquid

operators and one from API.

One operator asked three questions. The first dealt with a

``Special Note'' in API 1130 that API documents are reviewed, revised,

reaffirmed, or withdrawn at least every five years. The commenter asked

how incorporating API 1130 would affect the hazardous liquid pipeline

safety regulations should API not reaffirm the document, and the

document was no longer available. We review and revise the regulations

periodically to update the references to industry and other voluntary

standards. In this rule, we are incorporating the current version of

API 1130. An operator will have to comply with this version of the

document until we revise the rule. Whatever API does with API 1130 in

the future will not affect an operator's compliance with the version we

are incorporating.

The second question concerned the use of CPM systems not described

in section 4.1.2 of API 1130. Section 4.1.2 describes seven CPM

systems: line balance, volume balance, modified volume balance, real

time transient mode, pressure/flow monitoring, acoustic/negative

pressure wave, and statistical analysis. The commenter asked if CPM

systems not described could be used.

API 1130 lists and describes the seven CPM systems that are used by

the pipeline industry today. Section 4.1.2 does not limit the use of

CPM systems to only those described. Our intent in referencing API 1130

is to include any CPM system, whether or not described in the document,

as long as the system meets the requirements of API 1130.

[[Page 36375]]

The third question concerned how we would enforce compliance with

API 1130. Enforcement strategies are not included in the safety

standards, but rather are developed by the RSPA enforcement staff. Each

operator who has installed a CPM system will have to demonstrate that

it is complying with the requirements in API 1130, as it does with any

pipeline safety regulation.

The second operator suggested that the effective date for complying

with API 1130 should be 24 months instead of the proposed 12 months.

RSPA believes that 12 months is sufficient compliance time for at least

three reasons. First, the operator is not required to install a CPM

system, just to follow API 1130 if one is installed. Second, our

conversations with API indicate that the vast majority of operators who

use CPM systems have already adopted the practices embodied in the

document. Third, a 12-month compliance timetable follows THLPSSC's

recommendation.

API commented on the proposed rule's reference to the CPM selection

criteria in section 4.2. API stated that the NPRM can be interpreted as

requiring compliance with all the listed criteria in Section 4.2.

However, the introduction to Section 4.2 makes clear that no system

meets all the criteria. RSPA has revised Sec. 195.134 in the final rule

to clarify that all of the selection criteria do not have to be met.

In addition, we have revised the definition for Computation

Pipeline Monitoring to clarify that a CPM system alerts the pipeline

dispatcher of a possible operating anomaly rather than allows the

dispatcher to respond to an operating anomaly. This revision better

describes the function of the monitoring tool. Also, Sec. 195.134 has

been revised by eliminating the superfluous term ``that will be

installed'' referring to new CPM systems.

C. Advisory Committee Review

As mentioned previously, the THLPSSC accepted the subcommittee's

recommendation to reference API 1130 in 49 CFR part 195. The NPRM was

discussed at the THLPSSC meeting in Houston, Texas, on November 18,

1997. The eight members present voted unanimously to adopt API 1130 as

proposed in the NPRM.

III. Regulatory Analyses and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

This rule is not considered a significant action under section 3(f)

of Executive Order 12866 and, therefore, was not reviewed by OMB. It is

not considered significant under the Department of Transportation

Policies and Procedures (44 FR 11034, Feb. 26, 1979).

As THLPSSC recommended, this rule adopts an industry document, API

1130. Our adopting API 1130 should result in leak detection systems

that allow for faster leak detection, resulting in reduced commodity

loss, lower short-term cleanup costs from releases, and lower long-term

remediation costs. The rule does not require an operator to install a

CPM if the operator does not already have one. It only requires that an

operator with such a system follow API 1130. API 1130 represents good

industry practices. Our conversations with API officials confirm that

the vast majority of the industry that uses CPM already has adopted

these practices.

In the NPRM, RSPA solicited information on any costs to industry of

referencing API 1130. No one submitted any information on costs in

response to this request. Therefore, RSPA believes that the cost of

this regulation will be minimal and that a regulatory evaluation is not

necessary.

B. Regulatory Flexibility Act

The rule does not mandate the use of CPM but simply adopts the

practices already instituted and developed by industry. Most operators,

large, medium and small, with such systems already comply with these

requirements and will not incur additional costs. Therefore, based on

the facts available, I certify pursuant to Section 605 of the

Regulatory Flexibility Act (5 U.S.C. 605) that this action will not

have a significant economic impact on a substantial number of small

entities.

C. Federalism Assessment

The 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 Executive

Order 12612 (52 FR 41685, Oct. 30, 1987), RSPA has determined that this

rule does not have sufficient federalism implications to warrant

preparation of a Federalism Assessment.

D. Unfunded Mandates

This rule does not impose unfunded mandates under the Unfunded

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

There are minimal record keeping requirements included in API 1130.

This rule does not require an operator to have a CPM. The industry

developed API 1130; the vast majority of the industry that uses CPM

already has adopted the practices in API 1130. Because the record

keeping requirements represent the usual and customary practices of the

industry, there is minimal paperwork burden on the public.

Nevertheless, RSPA has prepared a paperwork analysis and, on April 1,

1998 submitted it to the Office of Management and Budget (OMB) for

review. The estimated annual information collection burden for the

entire industry is estimated to be only 100 hours per year.

Comments on the paperwork burden have been solicited on: (a) The

need for the proposed collection of information for the proper

performance of the functions of the agency, including whether the

information will have practical utility; (b) the accuracy of the

agency's estimate of the burden of the proposed collection of

information including the validity of the methodology and assumptions

used; (c) ways to enhance the quality utility and clarity of the

information to be collected; and (d) ways to minimize the burden of

collection of information on those who respond, including the use of

appropriate automated, electronic, mechanical, or other technological

collection techniques.

No comments were submitted in response to the request for comment.

OMB approved the information collection and assigned the information

collection control number 2137-0598, which is approved through April

30, 2001. Federal agencies are required to publish the OMB control

number for information collections in the Federal Register. Failure to

publish the information collection control number would mean that

respondents would not be required to respond to the information

collection.

List of Subjects in 49 CFR Part 195

Ammonia, Carbon dioxide, Petroleum, Pipeline safety, Reporting and

recordkeeping requirements.

In consideration of the foregoing, RSPA amends 49 CFR part 195 as

follows:

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE

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

follows:

[[Page 36376]]

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

and 49 CFR 1.53.

Subpart A--General

2. Section 195.2 is amended by adding the definition for

Computational Pipeline Monitoring to read as follows:

Sec. 195.2 Definitions.

* * * * *

Computation Pipeline Monitoring (CPM) means a software-based

monitoring tool that alerts the pipeline dispatcher of a possible

pipeline operating anomaly that may be indicative of a commodity

release.

* * * * *

3. Section 195.3 is amended by redesignating paragraphs (c)(2)(i)

through (c)(2)(iii), as paragraphs (c)(2)(ii) through (c)(2)(iv), and

adding a new paragraph (c)(2)(i) to read as follows:

Sec. 195.3 Matter incorporated by reference.

* * * * *

(c) * * *

(2) * * *

(i) API 1130 ``Computational Pipeline Monitoring'' (1st Edition,

1995).

* * * * *

Subpart C--Design Requirements

4. Section 195.134 is added to read as follows:

Sec. 195.134 CPM leak detection.

This section applies to each hazardous liquid pipeline transporting

liquid in single phase (without gas in the liquid). On such systems,

each new computational pipeline monitoring (CPM) leak detection system

and each replaced component of an existing CPM system must comply with

section 4.2 of API 1130 in its design and with any other design

criteria addressed in API 1130 for components of the CPM leak detection

system.

Subpart F--Operation and Maintenance

5. Section 195.444 is added to read as follows:

Sec. 195.444 CPM leak detection.

Each computational pipeline monitoring (CPM) leak detection system

installed on a hazardous liquid pipeline transporting liquid in single

phase (without gas in the liquid) must comply with API 1130 in

operating, maintaining, testing, record keeping, and dispatcher

training of the system.

Issued in Washington, DC on June 29, 1998.

Kelley S. Coyner,

Deputy Administrator.

[FR Doc. 98-17721 Filed 7-2-98; 8:45 am]

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