[Federal Register Volume 71, Number 225 (Wednesday, November 22, 2006)]
[Notices]
[Pages 67704-67705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-9355]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

[Docket No. PHMSA-2006-25803; Notice 1]


Pipeline Safety: Request for Waiver; Kinder Morgan Louisiana 
Pipeline, L.L.C.

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

ACTION: Notice of Intent to Consider Waiver Requests.

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SUMMARY: Kinder Morgan Louisiana Pipeline L.L.C. (KMLP) requests a 
waiver to use a 0.80 design factor in the steel pipe design formula for 
Class 1 locations on Leg 1 of its proposed natural gas interstate 
Kinder Morgan Louisiana Pipeline. The waiver will allow KMLP to design, 
construct and operate Leg 1 of its pipeline at hoop stresses up to 80 
percent of the specified minimum yield strength (SMYS) in Class 1 
locations. KMLP seeks relief from the related capacity design 
requirements for pressure relieving and pressure limiting stations on 
the same segment of the proposed pipeline.

DATES: Persons interested in submitting comments regarding this waiver 
request must do so by December 22, 2006.

ADDRESSES: Comments should reference Docket No. PHMSA-2006-25803 and 
may be submitted in the following ways:
    <bullet> The DOT Web site: http://dms.dot.gov. To submit comments 
on the DOT electronic docket site, click ``Comments/Submissions,'' 
click ``Continue,'' fill in the requested information, click 
``Continue,''enter your comment, then click ``Submit.''
    <bullet> Fax: 202-493-2251.
    <bullet> Mail: Docket Management System: U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-0001.
    <bullet> Hand Delivery: DOT Docket Management System; Room PL-401 
on the plaza level of the Nassif Building, 400 Seventh Street, SW., 
Washington, DC between 9 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays.
    <bullet> E-Gov Web site: http://www.regulations.gov. This site 
allows the public to enter comments on any Federal Register notice 
issued by any agency.
    Instructions for submitting comments: You should identify the 
docket number (PHMSA-2006-25803) at the beginning of your comments. If 
you submit your comments by mail, please submit two copies. If you wish 
to receive confirmation that PHMSA received your comments, please 
include a self-addressed stamped postcard. Internet users may submit 
comments at http://www.regulations.gov, and may access all comments 
received by DOT at http://dms.dot.gov by performing a simple search for 
the docket number.

    Note: All comments will be posted without changes or edits to 
http://dms.dot.gov, including any personal information provided.

    Privacy Act Statement: Anyone may search the electronic form of all 
comments received for any of our dockets. You may review DOT's complete 
Privacy Act Statement in the Federal Register published on April 11, 
2000 (65 FR 19477) or you may visit http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: Alan Mayberry by telephone at (202) 
366-5124; by fax at (202) 366-4566; by mail at DOT, Pipeline and 
Hazardous Materials Safety Administration, Pipeline Safety Program, 400 
Seventh Street, SW., Room 2103, Washington, DC 20590; or by e-mail at 
<a href="/cdn-cgi/l/email-protection#2948454847074448504b4c5b5b50694d465d074e465f"><span class="__cf_email__" data-cfemail="cbaaa7aaa5e5a6aab2a9aeb9b9b28bafa4bfe5aca4bd">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

    Kinder Morgan Louisiana Pipeline L.L.C. (KMLP) requests a waiver of 
compliance from certain regulatory requirements in 49 CFR 192.111 and 
192.201 for Class 1 locations on Leg 1 only of its proposed natural gas 
interstate pipeline. KMLP specifically requests a waiver to allow the 
use of a 0.80 design factor in the steel pipe design formula in Sec.  
192.105 in lieu of the design factor of 0.72 specified Sec.  192.111 
for Class 1 locations. The waiver will allow KMLP to design, construct 
and operate Leg 1 of its pipeline at hoop stresses up to 80 percent of 
the specified minimum yield strength (SMYS) in Class 1 locations. KMLP 
neither seeks a waiver from any other design factors, nor for any other 
segments of its pipeline.
    A waiver allowing an increase of the design factor from 0.72 to 
0.80 in the steel pipe design formula in Sec.  192.105 requires a 
modification in the required design capacities of pressure relieving 
and limiting stations installed to protect the pipeline. Therefore, 
KMLP also requests a waiver of Sec.  192.201(a)(2)(i), which prescribes 
the design capacity requirements for pressure relieving and limiting 
stations on pipelines with a maximum allowable operating pressure 
(MAOP) of 60 pounds per square inch gauge (psig) or more. KMLP 
specifically wants to design the pressure relieving and pressure 
limiting stations on Leg 1 of its pipeline such that the maximum 
pressure will not exceed the MAOP plus 4 percent or the pressure that 
produces a hoop stress of 83 percent of SMYS, whichever is lower.

System Description

    KMLP plans to construct and operate its pipeline to deliver 
approximately 3,395,000 Dekatherms per day (Dth/d) of regasified 
liquefied natural gas (LNG) from the Sabine Pass LNG terminal 
(currently under development) in Cameron Parish, Louisiana (LA), to 
markets in the eastern half of the United States. The pipeline will 
consist of two legs and two laterals. The pressure to operate the 
pipeline will be supplied by the LNG terminal so the proposed project 
does not include the construction of compressor stations.
    Four major segments comprise the KMLP pipeline project as follows:
    <bullet> Leg 1 is a 137-mile, 42-inch diameter, pipeline running

[[Page 67705]]

northeasterly from within the LNG terminal in Cameron Parish, LA, to an 
interconnection with a Columbia Gulf Transmission Company pipeline in 
Evangeline Parish, LA. Along this route, the pipeline connects to ten 
or more interstate and intrastate transmission pipelines and has a peak 
day capacity of approximately 2,130,000 Dth/d. This is the only leg of 
the pipeline to which the waiver will apply.
    <bullet> Leg 2, is a 1-mile, 36-inch diameter pipeline, running 
northerly from the LNG terminal to an interconnection with a Natural 
Gas Pipeline Company of America (NGPL) pipeline, located approximately 
0.41 miles north of the terminal. This leg is entirely within Cameron 
Parish, LA.
    <bullet> The Florida Gas Transmission (FGT) lateral is 2.2-mile, 
24-inch diameter, lateral pipeline extending from Leg 1 to an existing 
compressor station owned by FGT in Acadia Parish, LA.
    <bullet> The Bi-Directional Tie-in line is an interconnection 
between Leg 1 and Leg 2. The tie-in allows Leg 1 to receive gas from 
NGPL when not receiving gas from the LNG terminal.

Pipeline Design, Specifications and Quality Control

    KMLP's waiver petition describes various qualitative 
characteristics of its proposed pipeline system and it believes the 
proposed pipeline system meets and/or exceeds current PHMSA pipeline 
safety regulations. KMLP plans to design and construct the pipeline 
using steel pipe that conforms to Kinder Morgan's Material Standard 
M8270. KMLP also states that the Class 1 location line pipe for its 
proposed pipeline conforms to American Petroleum Institute's (API) 5L 
Grade X80 and X70 longitudinal or helical seam submerged are welded 
pipe. This specific pipe is externally coated with plan fusion bonded 
epoxy (FBE) as specified in Kinder Morgan's Engineering Standard 
(M8370).
    In its waiver request, KMLP states all pipeline welds will undergo 
nondestructive testing during construction. Crews will repair or remove 
and replace any weld imperfections discovered during testing that do 
not meet the pipeline safety regulations. To help and inspect the 
pipeline, KMLP will install pig launchers and receivers designed to 
allow the use of inline inspection (ILI) tools. KMLP will survey the 
pipeline with a multi-channel geometry ILI ``smart'' tool capable of 
detecting anomalies (including dents and buckles) before commissioning 
the pipeline for nature gas service. KMLP will also conduct a 
hydrostatic test of the pipeline to no less than 100 percent of SMYS 
before the pipeline is placed into service.

Risk Analysis

    KMLP stated it conducted a risk analysis for the pipeline project 
using a proprietary risk assessment program to compare the risks 
associated with using a 0.80 design criteria for a Class 1 location 
pipeline with the risks associated with the 0.72 design criteria 
required by Sec.  192.111. The analysis determined there was no 
significant increase in the risk associated with using the 0.80 design 
criteria for this pipeline design and location. The risk analysis 
considered the following nine risk areas: (1) Stress corrosion 
cracking, (2) manufacturing defects, (3) weather/outside factors, (4) 
welding and fabrication defects, (5) equipment failure, (6) equipment 
impact (third party damage), (7) external corrosion, (8) external 
corrosion and (9) incorrect operation. For the first five of these risk 
areas, the analysis showed zero or a negligible increase in the risk of 
failure between 0.70 and 0.80 design factor pipelines.
    Though KMLP's risk analysis did not show a significant risk 
increase, it did find a slightly higher degree of risk in the areas of 
external and internal corrosion when using a 0.80 design factor as 
compared to a 0.72 design factor. KMLP attributes this to the thinner 
pipe wall designed using a 0.80 design factor as compared to a pipe 
wall using a 0.72 design factor. Additionally, the risk analysis shows 
a slightly higher risk for incorrect operation because a pipe designed 
with a 0.80 design factor operates a higher stress levels and with a 
smaller margin between MAOP and SMYS. KMLP plans to employ several 
control and prevention programs to mitigate these slightly higher 
risks,
    PHMSA will consider a KMLP's waiver request and whether its 
proposal will yield an equivalent or greater degree of safety than 
currently provided by the regulations. After considering any comments 
received, PHMSA may grant a waiver to KMLP as proposed, with 
modifications and conditions, or deny the request. If PHMSA grants a 
waiver and subsequently determines the effects of the waiver are 
inconsistent with pipeline safety, PHMSA reserves the right to revoke 
the waiver at any time.

    Authority: 49 U.S.C. 60118(c) and 49 CFR 1.53.

    Issued in Washington, DC on November 16, 2006.
Theodore L. Willke,
Acting Associate Administrator for Pipeline Safety.
[FR Doc. 06-9355 Filed 11-17-06; 3:36 pm]
BILLING CODE 4910-60-M


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