[Federal Register Volume 62, Number 197 (Friday, October 10, 1997)]
[Notices]
[Pages 53052-53057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26916]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration (RSPA), DOT
[Docket No. PS-142; Notice 9]


Pipeline Safety: Remaining Candidates for the Pipeline Risk 
Management Demonstration Program

AGENCY: Office of Pipeline Safety, DOT.

ACTION: Notice.

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SUMMARY: The Research and Special Programs Administration's (RSPA) 
Office of Pipeline Safety (OPS) has completed screening of twelve 
candidate companies for the Pipeline Risk Management Demonstration 
Program. OPS named and described the first three companies screened 
(Northwest Pipeline Corporation, Shell Pipe Line Corporation, Tennessee 
Gas Pipeline/East Tennessee Natural Gas) in a previous notice. The nine 
additional companies screened subsequent to that notice are: Chevron 
Pipe Line Company; CNG Transmission Corporation; Columbia Gas 
Transmission Corporation/Columbia Gulf Transmission Company; Duke 
Energy; Florida Gas Transmission Company; Lakehead Pipeline Company; 
Mobil Pipe Line Company; Natural Gas Pipeline Company of America; and 
Phillips Pipe Line Company. OPS believes these companies' demonstration 
project proposals satisfy all eligibility criteria, based on a Letter 
of Intent (LOI) submitted by each company to OPS, a subsequent OPS 
screening, and an examination of each company's safety and 
environmental compliance record. Although this notice does not contain 
specific details of all project proposals, OPS believes the information 
provided in these companies' LOIs was sufficient to justify proceeding 
to the consultation process. Additional information, including further 
details of specific project proposals, will be provided in future 
Federal Register notices and other means of communication. This notice 
is based on information obtained very early in the process. It informs 
the public of which companies are interested in participating, the 
technologies to be explored, and the geographic areas demonstration 
projects may traverse. OPS invites public comment on any aspect of 
these companies' proposals.
    Comments: OPS requests that comments to this notice be submitted on 
or before December 9, 1997 so that OPS can give the comments full 
consideration before deciding whether to approve a company's proposal. 
However, comments on any aspect of the Demonstration Program, including 
the individual projects, will be accepted in the Docket throughout the 
4-year demonstration period. Comments should be sent to the Dockets 
Facility, U.S. Department of Transportation, Plaza 401, 400 Seventh 
Street, SW, Washington, DC 20590-0001. Comments should identify the 
docket number (PS-142). Persons should submit the original document and 
one (1) copy. Persons wishing to receive confirmation of receipt of 
their comments must include a self-addressed stamped postcard. The 
Dockets Facility is located on the plaza level of the Nassif Building 
in Room 401, 400 Seventh Street, SW, Washington, DC. The Dockets 
Facility is open from 10:00 a.m. to 5:00 p.m., Monday through Friday, 
except on Federal holidays.

FOR FURTHER INFORMATION CONTACT: Eben Wyman, (202) 366-0918 regarding 
the subject matter of this notice. Contact the Dockets Unit, (202) 366-
5046, for docket material.
SUPPLEMENTARY INFORMATION: Appendix A of the Requests for Applications 
for the Pipeline Risk Management

[[Page 53053]]

Demonstration Program (62 FR 14719; March 27, 1997) describes how OPS 
will receive, review, approve, monitor, modify, and terminate company 
risk management demonstration projects. This process established a July 
25, 1997 deadline for companies considering participating in a 
demonstration project to have submitted a Letter of Intent to OPS. 
Based on Letters of Intent and additional screening considerations, OPS 
has chosen twelve candidate companies whose project proposals merit 
further consideration. OPS is entering into consultations with 
candidate companies to clarify and refine demonstration project 
provisions. OPS may approve up to ten demonstration projects. If OPS 
approves a project, OPS will issue an order and begin auditing project 
performance. OPS is limited to approving no more than ten projects for 
participation in the program.
    OPS expects the projects, and the Demonstration Program itself, to 
evolve from lessons learned during the four-year demonstration period. 
OPS hopes to learn whether and in what form risk management should be 
incorporated into the Federal pipeline safety program on a permanent 
basis.
    This document is consistent with the OPS Communications Plan (62 FR 
43028), published in the Federal Register on August 11, 1997. OPS is 
requesting public input through all stages of the demonstration 
projects, beginning with receipt of the Letters of Intent. Specific 
benefits of public involvement in the Demonstration Program for OPS, 
industry, State and community representatives include:
    <bullet> Exchange of information about specific and relevant local 
factors during the decision-making process that may not be known at the 
Federal or State level; and
    <bullet> Feedback regarding the success of the Demonstration 
Program in accomplishing the goals for which it was designed.
    OPS requests comments on safety, environmental, socioeconomic, land 
use, geographic and any other issues that relate to these demonstration 
project proposals. OPS is considering public input, as well as input 
from local, State, and other federal agencies, during its consultations 
with candidate companies to discuss demonstration project provisions. 
OPS will publish the final provisions for each project and allow for 
additional public comment before issuing a project approval order. OPS 
will continue to seek broadbased input on individual demonstration 
projects throughout the four-year demonstration period. OPS is engaging 
in consultations with companies to achieve consensus on demonstration 
project provisions. If OPS and a company reach agreement, OPS will 
evaluate the company's formal proposal and approve those that offer the 
most benefits in testing risk management practices on pipelines.
    There were many distinguishing features contained in the LOI's that 
attracted OPS to these proposals. Besides many geographic areas 
involved, the type of terrain that these proposals would was also very 
diverse. Proposals included marshlands, river crossings, mountains, 
diverse climates, diverse soil types, etc. Further, demonstration sites 
varied in population densities, and fall under all Class locations 
ranging from Class 1 to Class 4. Class locations are areas 
characterized by different population densities, and are how OPS 
regulates pipelines according to populations in areas where pipelines 
exist.
    The following descriptions provide a brief, introductory summary of 
each company's demonstration project proposal. The information is 
derived from each company's LOI and from subsequent discussions between 
OPS and the company. More detailed information regarding the individual 
projects will be collected during the consultation process and 
carefully considered before a project is approved. The company 
descriptions are listed in alphabetical order.
    1. Chevron Pipe Line Company (CPL): Chevron Pipe Line Company (CPL) 
is proposing to use all or a portion of its Northwest Products Pipeline 
System (NPPS) in the demonstration program. The NPPS consists of two, 
eight-inch products pipelines, one transporting all grades of gasoline, 
the other transporting distillates such as diesel and jet fuel. The 40-
year old pipeline system transports a total of 72,000 barrels per day 
over 705 miles, traversing the states of Utah, Idaho, Oregon, and 
Washington. These states fall under the oversight of the OPS Western 
Region. The pipeline system begins at Chevron's Salt Lake City, Utah, 
refinery and terminates in Spokane, Washington. The pipeline crosses 
various terrains, including desert, farmland, mountains and several 
major river crossings. Most of the route is through low density 
population areas, with the exception of Salt Lake City and Boise, 
Idaho, where the population densities are moderate.
    CPL conducted a risk assessment of the NPPS in April, 1997. The 
assessment identified areas requiring mitigation that CPL believed it 
would not have otherwise identified through existing regulatory 
requirements. CPL found most of the existing regulations to be 
effective in reducing pipeline incidents, but also looked for 
opportunities to diverge from existing regulations and offer risk 
reduction alternatives that will add value. CPL is proposing a set of 
risk management procedures that consider the scope of the risks and 
would involve several employees throughout the company. CPL looks 
forward to a closer working relationship with pipeline regulatory 
agencies to allow for cost-effective alternatives that provide superior 
safety.
    CPL's risk management coordinator and point-of-contact is Dave 
Feiglstok. He can be reached at Chevron Pipe Line Company, P.O. Box 
6059, 4000 Executive Parkway, San Ramon, California, 94583-0959, or by 
calling (510) 842-6893.
    2. CNG Transmission Corporation: CNG Transmission Corporation 
(CNGT) operates an interstate natural gas pipeline system consisting of 
8,274 miles of transmission, storage, and gathering pipelines located 
in Maryland, New York, Ohio, West Virginia, Pennsylvania and Virginia. 
CNGT has identified 23 pipeline sections in all six states for its risk 
management demonstration project. These states fall under the OPS 
Central and Eastern Region.
    CNGT proposes to apply risk control activities as an alternative to 
current pipeline safety requirements regarding maximum allowable 
operating pressure (MAOP) in various Class locations. These risk 
control activities include use of smart pigging, special aerial 
patrols, and remediation of anomalies, or defects that could affect the 
pipeline's integrity. CNGT also proposes to incorporate additional 
prevention and mitigation measures in its comprehensive demonstration 
project to reduce the risk of third party damage.
    CNG's risk management coordinator and point-of-contact is Robert 
Fulton. He can be reached at CNG Transmission Corporation, 445 West 
Main Street, P.O. Box 2450, Clarksburg, West Virginia 26392-2450, or by 
calling (304) 623-8200.
    3. Columbia Gas Transmission Corporation and Columbia Gulf 
Transmission Company (Columbia): The Columbia system includes 12,705 
miles of pipeline operated by Columbia Gas Transmission and 3,856 miles 
of pipeline operated by Columbia Gulf Transmission. The Columbia Gas 
Transmission portion originates in the Appalachian production areas and 
transports gas to the Midwest and mid-Atlantic states. The Columbia 
Gulf portion originates in the Gulf Coast

[[Page 53054]]

production areas and transports gas to the Columbia Gas system. Both 
pipeline systems traverse a wide variety of terrain, including coastal 
plain, offshore, marsh, major river crossings, mountainous regions, and 
agricultural regions as well as some major population areas. The scope 
of the proposed project includes New York, Ohio, Pennsylvania, and 
Tennessee, and falls under OPS Central, Eastern, and Southern Region's 
responsibility.
    Columbia will include most, if not all, of its pipeline system and 
phase in the implementation of risk control activities over the four-
year demonstration period. For the initial phase of the project, 
Columbia proposes the following for its entire system:
    <bullet> Modified inspection frequency for relief and regulator 
valves including capacity calculations;
    <bullet> Modified inspection frequency for rectifier and test point 
inspection and detail survey;
    <bullet> Modified class location change resulting in different 
inspection frequencies and time frame for action under certain 
circumstances;
    <bullet> Use of hardness testing correlation to confirm pipe 
properties in lieu of lab analysis under certain conditions;
    <bullet> Expanded use of alternative pipeline repair techniques 
including welding activities and composite sleeves; and
    <bullet> Modified inspection frequency for valves and vaults.
    Columbia also intends to include certain geographic or site-
specific risk management activities including:
    <bullet> Elimination of pipe replacement due only to class location 
changes under certain conditions in Tennessee, New York, Ohio, and 
Pennsylvania;
    <bullet> Modification of MAOP under certain conditions in Ohio, 
Pennsylvania, and New York; and
    <bullet> New design and construction techniques for their proposed 
Millennium Pipeline System.
    OPS is interested in how Columbia approaches the maintenance 
program for older pipelines, and uses a management approach that 
integrates data collected across the organization.
    Columbia's risk management coordinator and point-of-contact is John 
S. Zurcher. He can be reached at Columbia at 1700 MacCorkle Avenue, 
S.E., P.O. Box 1273, Charleston, West Virginia, 25325-1273, or by 
calling (304) 357-2669.
    4. Duke Energy: Duke Energy (formerly PanEnergy Corporation) 
operates approximately 21,000 miles of interstate natural gas 
transmission pipelines within the United States. This pipeline system 
is composed of four interstate pipeline operating companies: Panhandle 
Eastern Pipeline Company (6,600 miles), Texas Eastern Transmission 
Corporation (9,000 miles), Trunkline Gas Company (4,200 miles), and 
Algonquin Gas Transmission Company (1,100 miles). The system is 
composed of pipelines with diverse physical attributes, such as age, 
strength, and size, and operates in diverse geographic and demographic 
environments. The project would be conducted in Pennsylvania, and is 
under OPS Eastern Region's oversight.
    Duke's proposal would be deployed in four phases. Each phase would 
be initiated contingent on a detailed explanation of the risk 
assessment and risk management programs that Duke uses on its pipelines 
and OPS's acceptance of the implementation of each phase. The first 
phase would involve the use of welding to repair external corrosion 
damage. Recent research work by the pipeline industry evaluated and 
tested this technique under simulated pipeline operating conditions, 
and developed criteria for safe operation. Duke proposes to use these 
criteria for repairs on the Texas Eastern system for anomalies detected 
during planned remediation work of the pipeline in Pennsylvania. The 
work would be restricted to specific, rural sections of pipeline on 
Line A. Line A is a 36-inch pipeline installed from the late 1970 
through the early 1980's, which traverses the state of Pennsylvania 
west to east in parallel with two and sometimes three other Texas 
Eastern pipelines of varying ages.
    Duke Energy's proposal is being considered because this company 
offers extensive experience with data collection and modeling for risk 
assessment, applied in a prioritized structure.
    Duke Energy's risk management coordinator and point-of-contact is 
Andy Drake. He can be reached at Duke Energy Corporation, P.O. Box 
1642, 5444 Westheimer Court, Houston, Texas 77056-1642, or by calling 
(713) 989-2311.
    5. Florida Gas Transmission Company (FGTC): Florida Gas 
Transmission Company (FGTC), a wholly owned subsidiary of Citrus 
Corporation, operates a pipeline of approximately 5,051 miles with a 
capacity of 1.5 BCF/day. It transports natural gas from Texas to 
Florida. Citrus Corporation is jointly owned by an Enron Corp. 
subsidiary and Sonat Inc.
    FGTC proposes a demonstration project involving a pipeline system 
operated by its Orlando Florida Team. The proposed test area includes a 
379-mile network of pipelines ranging in size from four-inch through 
30-inch and in-age timeframes from one to 38 years, with numerous 
measurement and regulation stations, a range of population densities 
(from rural to highly metropolitan), and various geographic and soil 
conditions.
    For the demonstration program, FGTC proposes to submit an 
application covering a wide range of alternative risk controls for:
    <bullet> Modifying MAOP;
    <bullet> Alternatives for class location changes; and
    <bullet> Changes in inspection frequencies and methods.
    This project is being considered for use of diverse elements in 
construction and operation practices.
    FGTC's risk management coordinator and point-of-contact is Max 
Brown. He can be reached at Florida Gas Transmission Company, P.O. Box 
1188, Houston, Texas 77251-1188, or by calling (713) 853-6161.
    6. Lakehead Pipe Line Company: Lakehead Pipe Line Company 
(Lakehead) operates approximately 2,700 miles of liquid petroleum 
pipelines through seven Midwestern states. Lakehead intends to use a 
risk management approach for the control of potential longitudinal seam 
cracks and internal and external corrosion on the 34-inch segments of 
its Line 3 crude petroleum pipeline in North Dakota, Minnesota, and 
Wisconsin. Items to be considered in this project include:
    <bullet> The use of advanced elastic wave in-line inspection 
methodology (in lieu of hydrostatic testing) to evaluate and mitigate 
the potential risk of a pipeline rupture resulting from long-seam crack 
propagation on certain submerged pipeline segments.
    <bullet> The use of in-line inspection and advanced internal 
corrosion mitigation and monitoring techniques to reduce the potential 
risk of a pipeline rupture resulting from corrosion damage.
    <bullet> Application of comprehensive risk management techniques to 
evaluate and mitigate problems associated with the integrity of tape 
coating on a large diameter pipeline.
    <bullet> Identification of prescribed activities that may become 
redundant or unnecessary in view of the potentially more effective and 
significant measures employed above.
    OPS sees benefit in Lakehead's exploration of techniques that may 
offer greater safety benefits than current requirements. Lakehead has 
also expressed an interest in developing new communications protocols 
with OPS.
    Lakehead's risk management coordinator and point-of-contact is 
Richard Sandahl. He can be reached at

[[Page 53055]]

Lakehead Pipe Line Company, Lake Superior Place, 21 West Superior 
Street, Duluth, Minnesota 55802-2067, or by calling (218) 725-0102.
    7. Mobil Pipe Line Company: Mobil Pipe Line Company (Mobil) 
currently owns approximately 5,409 miles of hazardous liquid pipeline 
in nine states. The proposed demonstration project will be conducted at 
Mobil's Patoka, Illinois, breakout tank facility in the OPS Central 
Region, and is intended to demonstrate Mobil's release prevention 
program. The prevention program uses an integrated system that includes 
proper equipment design, construction, operator training, operating 
procedures, periodic maintenance, periodic inspection, management 
controls, and management practices. Mobil proposes to use the Mobil 
Engineering Practices, elements of American Petroleum Institute 
standards, sound engineering judgment, management controls, 
sophisticated techniques called ``multi-attribute'' risk assessment 
scenarios, and risk management principles to validate and verify the 
integrity of its storage tanks. The project would also help demonstrate 
how these release prevention measures would work in conjunction with 
OPS's proposal to adopt multiple API Above Ground Storage Tank 
standards. Mobil's proposal offers a focus on challenges to tank 
integrity to provide special protection. Mobil's risk management 
coordinator and point-of-contact is Steve Streeter. He can be reached 
at Mobil Pipe Line Company, P.O. Box 900, Dallas, Texas 75221-0900, or 
by calling (703) 842-6189.
    8. Natural Gas Pipeline Company of America: Natural Gas Pipeline 
Company of America (NGPL), a subsidiary of the MidCon Corporation, 
moves natural gas through 13,000 miles of pipeline and pipeline 
facilities in 14 different states. Approximately seventy percent of 
NGPL's cross country transmission pipelines were constructed in the 
last 50 years and are between 24 and 36 inches in diameter. The terrain 
in which these pipelines are located is relatively flat with 
predominantly lower stress clay, loam, and sandy soil. Population 
distribution within 220 yards of the pipeline is 92 percent Class 1, 
three percent Class 2, and five percent Class 3. This means that NGPL's 
pipeline exists predominantly in low-density population areas.
    NGPL currently practices risk management in its normal operations 
and proposes to build on risk management programs by developing a more 
formal set of procedures in compliance with the requirements of the 
Risk Management Program Framework (62 FR 14719) and Risk Management 
Program Standard. It proposes to apply risk management to the entire 
pipeline system traversing Iowa, Illinois, and Indiana, all of which 
operate under the oversight of OPS's Central Region office.
    Company-wide issues that NGPL anticipates addressing include:
    <bullet> Testing existing research by the Pipeline Research 
Committee for in-service surface weld repair of pipe body defects and 
cold field bending of pipe;
    <bullet> Current drug testing frequency requirements;
    <bullet> Third party damage prevention programs, including annual 
public awareness activities;
    <bullet> Review record retention requirements;
    <bullet> Evaluating shorted casing corrosion, over pressure 
protection and proof testing of new or existing pipelines using inert 
gas along with new technologies in corrosion minimization/
identification; and
    <bullet> Proof testing pipeline facilities using water or gas, 
design factor requirements for fabricated assemblies, meter facilities, 
and compressor facilities.
    Site-specific issues in NGPL's proposal include:
    <bullet> Pipe replacement or maximum allowable operating pressure 
(MAOP) reduction due to Class Location change;
    <bullet> The design yield strength or wall thickness of pipe with 
an unknown strength;
    <bullet> The design factor at different population areas in Class 
1, 2 and 3 locations;
    <bullet> Distance interval requirements for pipeline sectioning 
with block valves;
    <bullet> Inspection intervals for rectifiers and other corrosion 
inspection test intervals;
    <bullet> Surface rust on aboveground pipe and pipeline facilities; 
and
    <bullet> Odorization in Class 3 areas and line patrol for different 
``Class'' locations.
    NGPL offers a very extensive range of alternatives in its proposal, 
and has shown considerable interest in working with OPS to choose these 
alternatives to address the most problematic areas.
    NGPL's risk management coordinator and point-of-contact is Craig 
Howard. He can be reached at Natural Gas Pipeline of America, 701 East 
22nd Street, Lombard, Illinois 60148-5072, or by calling (630) 691-
3617.
    9. Phillips Pipe Line Company: Phillip's risk management proposal 
encompasses its Sweeny-Pasadena system, which consists of a 12-inch and 
18-inch refined products pipeline in Texas. These lines cross 60 miles 
of varied population densities in the Houston, Texas area.
    Phillips is proposing a risk-based approach to all company and 
third-party excavation activities that occur on these pipelines to 
demonstrate that risk management practices can be effectively applied 
to improve safety through reduction of third party damage. Because 
third-party damage is the leading cause in pipeline failures, OPS looks 
forward to investigating these damage prevention practices to provide 
superior safety on the pipeline.
    Currently, Phillips deploys planning and oversight resources based 
on regulatory requirements on an equal basis regardless of related 
risks. In its risk management application, the company would consider 
risk factors such as depth of cover, operating status, population, and 
environmental exposure, and equipment used. Phillips would demonstrate 
that applying risk management principles to these factors, as well as 
developing specific of performance measures, can be more effective in 
assuring the pipeline's safety than what is achieved by current 
regulations.
    Phillip's risk management coordinator and point-of-contact is L.J. 
Schmitz. He can be reached at Phillips Pipe Line Company, 370 AB, 
Bartlesville, OK 74004, or by calling (918) 661-4814.
    This concludes the nine demonstration summaries. For your 
convenience, we are providing the summaries of the three companies that 
were screened earlier in the process.
    Appendix--Excerpt from the Federal Register Notice, ``Candidates 
for the Pipeline Risk Management Demonstration Program'' (62 FR 40135; 
July 25, 1997), which described the three projects screened earlier. 
The only change in this section is that the Point-of-Contact for 
Northwest Pipeline's proposed demonstration project has changed since 
this notice was published. This updates the previous language.

SUPPLEMENTARY INFORMATION: OPS has previously screened the following 
three candidates, and has determined that they meet the criteria for 
participating with OPS in consultations about their proposals: 
Northwest Pipeline Corporation, Shell Pipe Line Corporation, and 
Tennessee Gas Pipeline Corporation/East Tennessee Natural Gas Company.
    1. Northwest Pipeline Corporation (Northwest): Northwest operates 
approximately 3,900 miles of interstate natural gas transmission line 
running through six western states, with endpoints at Ingacio, Colorado 
and the Canadian border at Sumas, Washington.
    The pipeline traverses the densely populated regions of western

[[Page 53056]]

Washington and Oregon through the agricultural areas of eastern Oregon, 
Washington and Idaho into the isolated areas of southwest Wyoming, Utah 
and Colorado. The route covers a variety of terrains from mountains to 
deserts, crossing numerous rivers and lakes, encountering very moderate 
to very extreme climates, and crossing national parks, Indian nations, 
wilderness areas, and habitats of numerous threatened and some 
endangered species.
    While Northwest proposes to apply a risk management approach to its 
entire system, the company plans to limit regulatory exemptions to 
specified locations on the pipeline.
    OPS is interested in entering into consultations with Northwest 
because its risk management program has the potential to:
    <bullet> Explore means of assessing and addressing risks presented 
by a pipeline in rugged terrain susceptible to land movement;
    <bullet> Investigate the risk-reduction benefits of certain new 
technologies; and
    <bullet> Investigate new means of industry/government partnering to 
conduct cooperative pipeline research.
    The proposed Northwest demonstration project also has the potential 
to help OPS examine the benefits of risk management as a regulatory 
alternative under a variety of conditions because of the following 
distinguishing features:
    <bullet> A location with diverse geographic features (the 
demonstration site traverses six western states: Washington, Oregon, 
Idaho, Wyoming, Utah, and Colorado);
    <bullet> The identification of land movement as a significant risk 
issue for Northwest; and
    <bullet> The opportunity to explore various regulatory approaches, 
from item-by-item approvals to approvals of risk-based decision 
processes.
    Northwest's risk management program coordinator and point-of-
contact is Deonne Hootman. She can be reached at Northwest Pipeline 
Corporation, P.O. Box 58900, Salt Lake City, UT, 84158-8800, or by 
calling (801) 584-6874.
    2. Shell Pipe Line Corporation (SPLC): SPLC operates nearly 8,000 
miles of pipelines, transporting over 4.0 million barrels of oil, oil 
products, and carbon dioxide daily and employing over 700 people in 16 
states.
    SPLC is proposing portions of two separate interstate pipeline 
systems with different yet very distinct risk characteristics as its 
demonstration project: one transporting ethylene, a flammable, highly 
volatile liquid (HVL) that becomes a slightly lighter-than-air gas when 
released to the atmosphere, and which, under certain conditions, could 
form an explosive vapor cloud until diluted/dispersed; the second 
transporting carbon dioxide, a non-flammable, inert, non-toxic liquid 
that becomes a heavier-than-air gas when released to the atmosphere, 
and which, under certain conditions, could become an asphyxiation 
hazard until diluted/dispersed. Both ethylene, a hazardous liquid, and 
carbon dioxide must comply with Part 195 of the Code of Federal 
Regulations.
    The first part of SPLC's proposed demonstration project consists of 
nearly its entire Texas-Louisiana 12'' Ethylene Pipeline System 
(approximately 205 miles of 250 miles), which transports chemical-grade 
ethylene between Shell Oil Products Company's Deer Park (Texas) 
Manufacturing Complex and its Napoleonville (Louisiana) transfer 
facility. Ethylene is a chemical feed stock which is used in the 
manufacture of plastics, antifreeze, detergents and other consumer 
products. This proposed test area addresses risks concerning the 
operation of a 12 inch, HVL pipeline (and related facilities) at 
pressures between 1000 and 1400 psig, in the proximity to, and 
sometimes traversing, five areas with large and growing industrial/
residential populations. SPLC has been the operator of the pipeline 
since its construction in 1979.
    The second part of SPLC's proposed demonstration project consists 
of the northwestern half (approximately 260 miles) of its Cortez 30'' 
Carbon Dioxide Pipeline System which transports merchantable-grade 
carbon dioxide from Cortez, Colorado across New Mexico to Denver City, 
Texas (the demonstration segment terminates near Albuquerque, New 
Mexico). This carbon dioxide, in turn, is then used for tertiary oil 
recovery in the Denver City area. This proposed test area will assess 
the risks surrounding the operation of a 30-inch, carbon dioxide 
pipeline (and related facilities) at pressures between 1300 and 2200 
psig, where it operates in proximity to five areas with small and 
growing residential populations. SPLC has been the operator of the 
pipeline since its construction in 1983.
    For the test area included in the demonstration program, SPLC 
proposes a comprehensive risk management program that will assess all 
hazards and risks associated with operation of these pipelines.
    OPS is interested in entering into consultations with SPLC because 
its risk management program has the potential to:
    <bullet> Explore resource reallocation from lower-risk carbon 
dioxide pipeline to higher-risk ethylene;
    <bullet> Evaluate the effect on public safety and environmental 
protection caused by resource reallocation within an individual 
pipeline system, based on the constantly changing set of internal (i.e. 
pressure) and external (i.e. population) conditions; and
    <bullet> Employ the risk management communications initiative to 
improve third-party damage prevention and emergency response 
coordination.
    The proposed SPLC demonstration project also has the potential to 
help OPS examine the benefits of risk management as a regulatory 
alternative under a variety of conditions because of the following 
distinguishing features:
    <bullet> The commodities (ethylene and carbon dioxide);
    <bullet> The location (the demonstration sites cross several 
southwestern states, including Colorado, New Mexico, Texas, and 
Louisiana);
    <bullet> Technical/regulatory issues (SPLC is considering operating 
a section of the carbon dioxide pipeline at a higher pressure than is 
currently allowed by the regulations); and
    <bullet> Policy issues (the allocation of resources between high 
and low risk pipelines, and between high and low risk sections on the 
same pipeline).
    Fred Fischer, Manager, Technical Operations Support, leads SPLC's 
designated Risk Management team and serves as the central information 
contact for the program. He can be reached at Shell Pipe Line 
Corporation, Two Shell Plaza, P.O. Box 2648, Houston, Texas, 77252, or 
by calling 713-241-0461.
    3. Tennessee Gas Pipeline Corporation/East Tennessee Natural Gas 
Company (Tennessee/East Tennessee): Tennessee/East Tennessee are 
subsidiaries of El Paso Natural Gas Company of Houston, Texas. 
Tennessee Gas operates a total of 14,574 miles of both onshore and 
offshore pipeline, while East Tennessee Natural Gas operates 1,149 
miles of onshore pipeline.
    Tennessee/East Tennessee proposes to apply a risk management 
approach to its entire system. The company proposes modifying or 
eliminating compressor station relief valve testing and inspection 
under certain conditions, extending from 18 months to 24 months the 
time it is allowed to confirm or revise maximum allowable operating 
pressure due to class location changes, reducing the inspection 
frequency under certain conditions of certain emergency valves and 
regulators, and using new design criteria for increased system 
efficiency.

[[Page 53057]]

    Tennessee/East Tennessee has also specified locations in western 
Pennsylvania, central Tennessee, and offshore Louisiana where it 
proposes altering maximum allowable operating pressure to suit local 
conditions.
    The company believes superior safety can be achieved by enhanced 
damage prevention, increased patrolling, the use of internal inspection 
tools, and the reallocation of funds to re-habilitation projects on its 
higher risk pipeline segments.
    OPS is interested in entering into consultations with Tennessee/
East Tennessee because its risk management program has the potential 
to:
    <bullet> Provide examples of data collection and analysis tools for 
supporting risk management; and
    <bullet> Provide examples of how companies can use risk management 
to re-allocate resources to re-habilitation projects and other high 
value safety activities.
    The proposed Tennessee/East Tennessee demonstration project also 
has the potential to help OPS examine the benefits of risk management 
as a regulatory alternative under a variety of conditions because of 
the following distinguishing features:
    <bullet> Consideration of worker safety as well as public safety in 
risk assessment;
    <bullet> Examination of the risk control potential of a number of 
existing regulations;
    <bullet> The use of risk-based arguments for establishing MAOP; and
    <bullet> The breadth of the demonstration site (which includes four 
OPS regions: Southern, Eastern, Central, and Southwest; and 17 states).
    Tennessee/East Tennessee's risk management program coordinator and 
point-of-contact is Daron Moore. He can be reached at Tennessee Gas 
Pipeline Company, P.O. Box 2511, Houston, TX, 77252-2511, or by calling 
(713) 757-4023.

    Issued in Washington, DC, on October 6, 1997.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
[FR Doc. 97-26916 Filed 10-9-97; 8:45 am]
BILLING CODE 4910-60-P