U.S. Department of Housing and Urban Development

H O U S I N G

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Special Attention of: Notice H 94-87 (HUD)

Secretary\'s Representatives; State Issued: October 27, 1994

Coordinators; Directors of Housing; Expires: October 31, 1995

Directors of Multifamily Housing;
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Chief Counsels; and Architectural Cross References:

Staff HB 4460.1 REV-1

HB 4600.1 REV-1

HB 4430.01 REV-1

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Subject:Surveyor Identification of Gas and Hazardous Liquids

Pipelines Regulated by 49 CFR Parts 192 and 195, and A&E

Collection of Pipeline Operator Compliance Certifications

A.PURPOSE: This Notice is to:

1.Eliminate requirements for surveyors to identify gas and

hazardous liquids pipelines regulated by the Department

of Transportation under 49 CFR Parts 192, Transportation

of Natural Gas and Other Gas by Pipeline: Minimum

Federal Standards, and 49 CFR Part 195, Transportation

of Hazardous Liquids by Pipeline, for such pipelines

that are within 220 yards of the project site; and

2.Eliminate requirements for HUD A&E to collect documentation

regarding compliance of gas and hazardous liquids

transportation pipelines regulated by the Department of

Transportation under 49 CFR Parts 192 and 195.

NOTE:The surveyor must still identify all easements and

pipelines that cross or are adjacent to the project,

as otherwise prescribed by the Minimum Standard

Detail Requirements and Classifications for

ALTA/ACSM Land Title Surveys dated 1992, and Form

HUD 92457, Surveyor Instructions and Report.

B.BACKGROUND:

1.Circular FHA 4540.2C, dated February 10, 1972,

superseded previously used Federal Housing

Administration isolation standards and criteria for

residential construction permitted adjacent to subject

pipelines. The Circular accepted, as the HUD criteria,

the Department of Transportation (DOT)(then recently

issued) minimum safety standards that govern the design,

construction, testing and operation of all such pipelines.

These minimum standards are codified under

49 CFR Parts 192 and 195.

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HMIT : Distribution: W-3-1,W-2(H)(ZAOO)(OGC),W-4(H)(OGC),R-1,R-2,

R-3-1(H)(RC),R-3-2,R-3-3,R-6,R-6-2,R-7,R-7-2,R-8

Previous Editions Are Obsolete HUD 21B(3-80)

GPO 871 902

2

a.The Circular did not require HUD to collect pipeline

operator certifications that subject pipelines were in

compliance with the DOT standards, 49 CFR Part 192,

Transportation of Natural Gas and Other Gas By Pipeline:

Minimum Federal Standards, and 49 CFR Part 195,

Transportation of Hazardous Liquids by Pipeline.

b.The Circular did require a 10-foot separation between

residential structures and transmission pipeline easements

for pipeline maintenance access.

2.Subsequent to Circular FHA 4540.2C, HUD has administratively

inserted requirements in various handbooks that HUD collect and

file certifications of pipeline compliance with 49 CFR Parts 192

or 195, as applicable, for pipelines up to 220 yards from the

project site. These HUD procedures do not increase isolation

requirements for or impose other life-safety or property-safety

criteria above that prescribed by the DOT administered

regulations. Additionally, all interstate and intrastate

pipelines engaged in the transmission and distribution of the

subject gases and hazardous liquids have been subject to the DOT

regulations for over 22 years, and must be continuously monitored

by their owners for compliance with the DOT regulations.

3.HUD Handbook 4430.01 REV-1, issued September 23, 1992, imposed

requirements on the surveyor to certify to the

existence/nonexistence of such offsite pipelines up to a distance

of 220 yards from the surveyed property. This requirement was

imposed to facilitate HUD collection of the pipeline operator

compliance certifications. The additional surveyor and attorney

fees for addressing this requirement are reported to range in

excess of \$2,500 in many cases. There have also been numerous

complaints regarding the closing delays arising from the

requirement.

4.A telephone survey made of each A and B Field Office during the

period March 28-29, 1994, disclosed that no interviewed personnel

recalled any instance in which the operator for identified high

pressure gas lines or liquid petroleum (hazardous liquids)

transmission lines failed to certify compliance with 49 CFR Part

192 or 195, as applicable. This indicates that no additional

benefit accrued to HUD projects for the additional

surveyor/attorney fees and closing delays that were incurred due

to these administrative requirements.

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C.HANDBOOK REQUIREMENTS: This Notice:

1.Cancels HUD Handbook 4460.1 REV-1, Architectural Analysis and

Inspections for Project Mortgage Insurance, paragraph 2-7.B.3.o.,

calling for identification on the survey of high pressure gas and

liquid petroleum pipelines within 220 yards of the property; and

paragraph 1-4.K.2. and subparagraphs, regarding collection of

pipeline operator certifications for compliance with 49 CFR Parts

192 and 195;

2.Cancels HUD Handbook 4600.1 REV-1, Section 232 Mortgage Insurance

for Residential Care Facilities, paragraph 5-11.B., High Pressure

Gas and Hazardous Liquids Transmission Lines, in its entirety;

and

3.Modifies Handbook 4430.01 REV-1, Initial Closing for Project

Mortgages, paragraphs 1-10.H.1.b. and c., pertaining to the

surveyor\'s certificate to read as follows:

\"I made an on the ground survey per record description of

the land shown hereon located in \_(city or town, county,

township. etc.)\_, on \_(date)\_; and that it and this (these)

map(s) was (were) made in accordance with the HUD Survey

Instructions and Certificate, Form HUD-92457, and meet the

requirements for an Urban Survey, as defined in the \'Minimum

Standard Detail Requirements for ALTA/ACSM Land Title

Survey,\' dated 1992.\"

\"To the best of my knowledge, belief and information, except

as shown hereon: There are no encroachments either way

across property lines; title lines and lines of actual

possession are the same; and the premises are free of any

(subject to a) 100/500 year return frequency flood hazard,

and such flood free (flood) condition is shown on the

Federal Flood Insurance Rate Map, Community Panel No.

\_\_(state, if none)\_.\"

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Nicolas P. Retsinas

Assistant Secretary for Housing-

Federal Housing Commissioner