[Federal Register Volume 62, Number 149 (Monday, August 4, 1997)]
[Notices]
[Pages 41993-41994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20468]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration
[Docket No. RSPA-97-2707; Notice 1]


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

    Applied LNG Technologies (ALT) has petitioned the Research and 
Special Programs Administration (RSPA) for a waiver from compliance 
with certain provisions of 49 CFR part 193 for its Needle Mountain 
Liquefied Natural Gas (LNG) storage and truck loading facility at 
Topock, Arizona. This facility consists of two 50,000 gallon LNG 
storage tanks and a truck transfer system. It is piped to a 
liquefaction facility owned and operated by a subsidiary of El Paso 
Natural Gas. A transmission pipeline, owned by El Paso Natural Gas 
Company supplies Part 192 regulated gas to the El Paso liquefaction 
facility. ALT alleges that an extension of Part 193 jurisdiction to the 
Needle Mountain LNG storage and truck loading facility would be 
inconsistent with the language of Section 193.2001(a). Section 
193.2001(a) states ``This part prescribes safety standards for LNG 
facilities used in the transportation of gas by pipeline that is 
subject to the Natural Gas Pipeline Safety Act of 1968 and Part 192 of 
this chapter''. ALT states that the Needle Mountain LNG storage and 
truck loading facility would not be transporting natural gas by 
pipeline. ALT further points out that Section 193.2001(b)(1) states 
``This part does not apply to LNG facilities used by the ultimate 
consumer of LNG or natural gas''. ALT states that this facility would 
be loading LNG into tank trucks for delivery to commercial and 
industrial customers, thus, it is the ultimate consumer of LNG. 
Therefore, ALT alleges that the Needle Mountain LNG storage and loading 
facility is non-jurisdictional.
    On May 16, 1997, the RSPA issued an Interpretation of Part 193 as 
it applies to the Needle Mountain LNG Storage and truck loading 
facility. LNG storage and truck loading facility is owned and operated 
by Applied LNG Technology, Inc. The liquefaction facility and piping is 
owned and operated by a subsidiary of El Paso natural gas. However, the 
land on which the storage facility sits is owned by El Paso Natural 
Gas. In that interpretation, RSPA stated that regardless of who owns or 
operates different sections of an LNG facility, it is subject to Part 
193 in its entirety. Part 193 encompasses all parts of an LNG facility 
from the point at which it receives gas from a Part 192 regulated gas 
transmission pipeline through the liquefaction process, storage, and 
transfer into a motor carrier vehicle.
    ALT now requests a waiver from compliance with certain sections of 
Part 193 and proposes to ensure equivalent safety through compliance 
with the National Fire Protection Association (NFPA) standard 59A. The 
specific sections of Part 193 for which ALT seeks a waiver are:
    (1) Section 193.2173--Water Removal: Sec. 193.2173(a) requires that 
except for Class 1 systems, impounding systems must have sump pumps and 
piping over the dike to remove water collecting in the sump basin.
    NFPA 59A section 2-2.2.7 requires either sump pumps or gravity 
drainage for water removal, provided there is means to prevent the 
escape of LNG by way of the drainage system.
    ALT's rationale for noncompliance: The impoundment area in this 
facility drains to a sump basin. A sump pump is not provided due to the 
arid location. In the rare event of rain in Topock, AZ, ALT does not 
expect to have standing water for any length of time.
    RSPA would agree with ALT that a sump pump and piping are not 
necessary at this LNG facility due to the arid location only if ALT can 
demonstrate that there would be no standing water (i.e., proving ground 
is permeable) in the sump for any significant period. RSPA proposes to 
grant the waiver from Sec. 193.2173 subject to the above condition.
    (2) Section 193.2209(b)(2)--Instrumentation for LNG storage tanks: 
For LNG tanks with capacity of 70,000 gallons or less, 
Sec. 193.2209(b)(2) requires pressure gages and recorders with high 
pressure alarm.
    NFPA 59A 7-2.1 requires only a pressure gage.
    ALT does not believe that safety has been compromised by requiring 
only a pressure gage, because any high pressure in the storage tank is 
controlled by a recompressor system within the ``facility'' that 
maintains the storage pressure at 20 psig. Any failure of this system 
places the entire storage facility in a ``fail safe'' (shut down) mode.
    RSPA believes that recorders (at the storage tank site and possibly 
at the control center) and a high pressure alarm (at the control 
center) are essential in the event of the failure of the recompressor 
system. Although the entire storage facility will be placed in a shut 
down mode, there appears to be no way to prevent pressure from 
increasing in the LNG storage tank. This is especially important 
because this LNG storage facility will be an unattended operation. 
Therefore, RSPA is proposing not to grant a waiver from 
Sec. 193.2209(b)(2).
    (3) Section 193.2321(a)--Nondestructive tests, Circumferential butt 
welds: Sec. 193.2321(a) requires that 100 percent of circumferential 
butt welded pipe joints in the cryogenic piping and 30 percent of 
circumferential butt welded pipe joints in the non-cryogenic piping be 
nondestructively tested.
    NFPA 59A 6-6.3.2 requires all circumferential butt welds to be 
nondestructively tested, except that liquid drain and vapor vent piping 
with an operating pressure that produces a hoop stress of less than 20 
percent of specified minimum yield stress (SMYS) need not be 
nondestructively tested, provided it has been inspected visually in 
accordance with the American Society of Mechanical Engineers 
(ASME)standard B31.3, Chemical Plant and Petroleum Refinery Piping, 
344.2.
    RSPA believes that safety is not compromised and is considering 
granting a waiver from Sec. 193.2321(a) for the liquid drain and vapor 
vent piping with operating pressures that produce hoop stresses of less 
than 20 percent SMYS, if that piping complies with the NFPA 59A 6-
6.3.2.
    (4) 193.2321(e)--Nondestructive tests, Circumferential and 
longitudinal welds in metal shells of storage tanks: Sec. 193.2321(e) 
requires 100 percent of both longitudinal and circumferential butt 
welds in metal shells of storage tanks that are subject to cryogenic 
temperatures, and are under pressure, to be radiographically tested.
    NFPA 59A 4-2.2.2 requires welded construction for shell in 
accordance with the ASME Code section VIII, and shall be ASME-stamped 
and registered with the National Board of Boiler and Pressure 
Vessels(NBBI)
    ALT's rationale for requesting a waiver is that safety in this case 
is not compromised as ALT storage tanks are small, shop fabricated, and 
built to ASME Code. ASME Section VIII is an accepted standard to which 
cryogenic pressure vessels are built all over the world.
    RSPA agrees that safety is not compromised by waiving the 
requirements of Sec. 193.2321(e) for smaller pressure vessels (less 
than

[[Page 41994]]

70,000 gallons) which are designed and built to ASME Code VIII (greater 
than 15 psig). Tanks built to this code are shop fabricated under 
strict quality control and are inspected and stamped by the Authorized 
Inspectors of the NBBI. Storage tanks at the ALT LNG facility are built 
to ASME code Section VIII and have a capacity of 50,000 gallons 
(relatively small). Therefore, RSPA is proposing to grant the waiver 
from Sec. 193.2321(e).
    (5) Sections 193.2329 (a) and (b)--Construction Records: 
Sec. 193.2329(a) require that an operator shall retain records of 
specifications, procedures, and drawings consistent with this part, and 
Sec. 193.2329(b) requires that an operator shall retain records of 
results of tests, inspections and quality assurance program required by 
this subpart.
    ALT requests a waiver for records for design and manufacture of the 
pressure vessels, because they are built to the ASME code as referenced 
in NFPA 59A. ALT would comply with all other record keeping 
requirements in accordance with Secs. 193.2329 (a) and (b).
    RSPA agrees and is proposing to grant waiver from Secs. 193.2329 
(a) and (b) for those parts of its facility where ALT has requested and 
has been granted a waiver.
    (6) Section 193.2431(c)--Vents: Sec. 193.2431(c) requires that 
venting of natural gas/vapor under operational control which could 
produce a hazardous gas atmosphere must be directed to a flare stack or 
heat exchanger.
    NFPA 59A 3-4.5 also requires safe discharge of boil-off and flash 
gas to the atmosphere or into a closed system. NFPA 10-12.4.4 requires 
that safety relief valve discharge stacks or vents shall discharge 
directly into the atmosphere.
    ALT is requesting a waiver from Sec. 193.2431(c) which requires 
flare stacks. ALT's reasons for noncompliance are that (i) safety 
relief valves relieve under emergency conditions, and (ii) there will 
be no boil-off venting at this facility because LNG storage vessels are 
maintained at a storage pressure of 20 psi by a recompressor system.
    RSPA agrees that at this LNG facility recompressor system will 
maintain a pressure of 20 psi in the LNG storage tanks. Therefore, no 
continuous discharge of boil-off to atmosphere is expected. RSPA 
believes that relief valves discharge only under emergency conditions. 
Therefore, it is safe to discharge them to the atmosphere through a 
stack without flaring.
    Therefore, RSPA is proposing to grant a waiver from compliance with 
Sec. 193.2431(c), as long as relief valves discharge through stacks 
which are higher than surrounding structures at this facility.
    (7) Section 193.2817 (b)(2)--Fire Equipment: Sec. 193.2817(b)(2) 
requires fire control equipment and supplies to include a water supply 
and associated delivery system, if the total inventory of LNG is 70,000 
gallons.
    NFPA 59A 9-5.1 similarly requires a water system except where an 
evaluation in accordance with 9-1.2 indicates the use of water is 
unnecessary or impractical. Section 9-1.2 also requires evaluation of 
the methods necessary for protection of the equipment and structures 
from the effects of fire exposure.
    ALT not only requests a waiver from Sec. 193.2817(b)(2), but also 
takes an exception to NFPA 59A 9-5.1. ALT's rationale for such a waiver 
is that this facility is remotely located, generally unattended, and is 
equipped with fire detection sensors which will annunciate fire 
detection to the control center, as well as initiate a facility 
shutdown to a fail-safe condition.
    RSPA disagrees with ALT's rationale that water is unnecessary and 
impractical at this facility. This LNG facility has two 50,000 gallon 
capacity storage tanks, processors, liquefiers, compressors, and 
piping. For protection of the above components and for controlling 
unignited leaks and spills, RSPA believes that a fire protection water 
system is necessary. From the information available to RSPA, it appears 
that providing a water system at this facility is feasible. Therefore, 
RSPA is not proposing to grant a waiver from Sec. 193.2817(b)(2).
    Except for the sections for which RSPA is proposing to grant a 
waiver, this LNG facility must meet all the other requirements of Part 
193. For the sections for which RSPA proposes to grant a waiver, RSPA 
believes that the granting of a waiver from these requirements would 
not be inconsistent with pipeline safety, as long as ALT follows 
alternative provisions in the NFPA 59A.
    Interested parties are invited to comment on the proposed waiver by 
submitting in duplicate such data, views, or arguments as they may 
desire. Comments should identify the Docket and Notice number, and 
should be addressed to the Docket facility, U.S. Department of 
Transportation, Plaza 401, 400 Seventh Street SW., Washington, DC 
20590-0001.
    All comments received before September 30, 1997, will be considered 
before final action is taken. Late filed comments will be considered so 
far as practicable. No public hearing is contemplated, but one may be 
held at a time and place set in a notice in the Federal Register if 
requested by an interested person desiring to comment at a public 
hearing and raising a genuine issue. All comments and other docketed 
material will be available for inspection and copying in room 401 plaza 
between the hours of 10:00 a.m. and 5 p.m., Monday through Friday, 
except federal holidays.

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

    Issued in Washington, D.C. on July 30, 1997.
Cesar De Leon,
Deputy Associate Administrator for Pipeline Safety.
[FR Doc. 97-20468 Filed 8-1-97; 8:45 am]
BILLING CODE 4910-60-P