77422 Federal Register / Vol. 65, No. 238 / Monday, December 11, 2000 / Notices

1OPS is considering whether or not additional

regulations to enhance pipeline integrity in high

consequence areas is warranted for natural gas

transmission pipelines. Additional information on

integrity management rule-related activities is

available on the OPS web site at http://ops.dot.gov.

the overall effect of the waiver remains

consistent with pipeline safety. If, after

reviewing the Duke evaluation and

report, OPS determines that the terms of

the terms of the waiver are no longer

appropriate or that the overall effect of

the waiver is inconsistent with pipeline

safety, OPS will revoke the waiver and

require Duke to comply with 49 CFR

192.611 and all other applicable

regulations. This waiver will expire

upon approval of Duke’s risk

management demonstration project or in

the event that the Duke risk

management demonstration project is

disapproved. If either of these actions

occur earlier than 90 days after OPS

adopts new rules related to integrity

management of natural gas pipelines,

then this re-evaluation will not be

required.

6. Regulatory Perspective

Why is OPS Considering This Waiver?

OPS has determined that the terms of

the waiver are appropriate and that the

overall effect of the waiver is not

inconsistent with pipeline safety. The

following factors were considered when

making this determination:

1. The proposed Activities will

provide a comparable margin of safety

and protection for the environment and

the communities in the vicinity of

Duke’s pipelines.

2. Duke’s risk-based justification of

the alternatives to the class location

change regulations is technically sound.

3. The fifteen waiver segments have a

good integrity history, with no leaks

recorded during operation or

hydrostatic testing.

4. Duke has internally inspected a

total of 191 miles of pipe on the three

parallel lines in the Mt. Pleasant

discharge, including all of the waiver

segments. These inspections provide

added protection against pipeline

failures from corrosion, manufacturing

and construction defects, and outside

third-party damage along the full 191

mile length. Compliance with 49 CFR

192.611 would require replacement of

pipe within the waiver segments only

(approximately 12 miles of pipe) with

no added protection for the extended

segments (approximately 181 miles of

pipe). The proposed Activities provide

added protection by including the

additional pipe. Duke also conducted

hydrostatic tests to 100% SMYS on Line

10. In addition, Duke has installed the

TransWave system and will be

evaluating it over the coming year.

5. Duke was selected as a candidate

for the Risk Management Demonstration

Program and has participated in a

rigorous consultation process with OPS,

which included an enhanced sharing

with OPS of information related to the

integrity Duke’s pipeline. The

consultation process is nearly complete

and may result in acceptance of Duke

into the Risk Management

Demonstration Program including

enforceable commitments for the

additional risk control activities.

How Will OPS Oversee the Activities?

OPS retains its authority to enforce

Duke’s compliance with the pipeline

safety regulations. OPS is only

considering whether to grant a waiver

from compliance with 49 CFR 192.611

at those fifteen segments where Duke

has demonstrated that its proposed

Activities achieve a comparable margin

of safety and environmental protection.

Should any information subsequently

indicate that the terms of the waiver are

no longer appropriate or that the overall

effect of the waiver is inconsistent with

pipeline safety, then OPS retains its

authority to revoke the waiver and

require Duke to again comply with 49

CFR 192.611 and all other applicable

regulations.

This Notice is OPS’s final request for

public comment before OPS makes a

final decision on granting the waiver to

Duke.

Issued in Washington, DC, on December 5,

2000.

Stacey L. Gerard,

Associate Administrator for Pipeline Safety.

[FR Doc. 00–31340 Filed 12–8–00; 8:45 am]

BILLING CODE 4910–60–P

DEPARTMENT OF TRANSPORTATION

Research and Special Programs

Administration

[Docket No. RSPA–00–8453; Notice 1]

Pipeline Safety: Intent To Consider

Waiver and Environmental

Assessment of Waiver for Tennessee

Gas Pipeline Company

AGENCY: Office of Pipeline Safety,

Research and Special Programs

Administration, DOT.

ACTION: Notice of intent to consider

waiver and environmental assessment of

waiver.

SUMMARY: The Office of Pipeline Safety

(OPS) is conducting a Risk Management

Demonstration Program with pipeline

operators to determine how risk

management might be used to

complement and improve the existing

Federal pipeline safety regulatory

process. OPS selected Tennessee Gas

Pipeline Company (TGP) as a candidate

for participation in the Demonstration

Program; subsequently, OPS and TGP

held discussions as part of a

consultation process. During the

consultation, TGP identified a portion of

its system where it believed performing

alternative risk control activities in lieu

of compliance with current regulations

would result in a comparable margin of

safety and environmental protection.

TGP submitted an application to OPS to

waive certain regulatory requirements

relating to class location changes for

four pipeline segments. TGP’s

application stated that TGP would carry

out the proposed alternative risk control

activities in lieu of compliance with

these regulations.

This Notice announces OPS’s intent

to consider granting a waiver to allow

TGP to perform the proposed alternative

risk control activities. OPS has reviewed

the terms of this waiver and found them

to be appropriate. Among the terms of

the waiver that were crucial to OPS’s

decision to consider granting the waiver

were TGP’s selection as a candidate for

the Risk Management Demonstration

Program and TGP’s subsequent

participation in a consultation process

with OPS. In addition, OPS has found

that the overall effect of the waiver is

not inconsistent with pipeline safety,

because TGP’s proposed Activities

achieve a margin of safety and

environmental protection comparable to

the margin achieved by compliance

with current regulations. Within 90 days

of OPS’s adoption of new rules related

to integrity management of natural gas

pipelines 1, TGP will be required to reevaluate the effects of its proposed

alternative risk control activities and

report to OPS on whether the terms of

the waiver continue to be appropriate

and whether the overall effect of the

waiver remains consistent with pipeline

safety. This Notice also provides an

environmental assessment of TGP’s

Activities. Based on this environmental

assessment, OPS has preliminarily

concluded that this waiver will have no

significant environmental impacts.

OPS seeks public comment on the

proposed waiver and the environmental

assessment, so that it may consider and

address these comments before making

a final decision on this matter.

ADDRESSES: OPS requests that

comments to this Notice or about this

environmental assessment be submitted

on or before January 10, 2001, so they

can be considered before a final

determination is made whether to grant

Federal Register / Vol. 65, No. 238 / Monday, December 11, 2000 / Notices 77423

2Candidates for the Pipeline Risk Management

Demonstration Program (62 FR 40135, July 25,

1997).

3Pipeline Safety: Remaining Candidates for the

Pipeline Risk Management Demonstration Program

(62 FR 53052, October 10, 1997).

the waiver to TGP. Written 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 RSPA–00–8453. Persons should

submit the original comment 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

a.m. to 5 p.m., Monday through Friday,

except on Federal holidays. You may

also submit comments to the docket

electronically. To do so, log on to the

DMS Web at http://dms.dot.gov. Click

on Help & Information to obtain

instructions for filing a document

electronically.

FOR FURTHER INFORMATION CONTACT:

Elizabeth Callsen, OPS, (202) 366–4572,

regarding the subject matter of this

Notice. Contact the Dockets Unit, (202)

366–5046, for docket material.

Comments may also be reviewed online

at the DOT Docket Management System

website at http://dms.dot.gov/.

SUPPLEMENTARY INFORMATION:

1. Background

The Accountable Pipeline Safety and

Partnership Act of 1996 authorizes the

Secretary of Transportation to establish

risk management demonstration projects

in partnership with operators of gas and

liquid pipeline facilities, pursuant to

U.S.C. 60126. In 1997, OPS announced

that Tennessee Gas Pipeline Company

(TGP) and eleven other pipeline

companies would be candidates for

participation in the Risk Management

Demonstration Program.2 3 Following

this announcement, a consultation

process commenced, in which an OPS

Project Review Team (PRT) and TGP

held discussions on the potential

participation of TGP in the

Demonstration Program. The

consultation process involved technical

scrutiny by OPS of TGP’s safety

practices and pipeline integrity.

During the course of the consultation

process, TGP identified four pipeline

segments in its system where it

proposed to conduct risk control

alternative activities (the ‘‘Activities’’)

in lieu of the class location change

requirements in 49 CFR 192.611. TGP

submitted an application 4 for a waiver

of the requirements of 49 CFR 192.611

for the four segments (the ‘‘waiver

segments’’) and implementation of the

Activities in lieu of compliance. This

document summarizes OPS’s review of

the Activities and evaluates the extent

to which the terms of the waiver are

appropriate and the overall effect of the

waiver is not inconsistent with pipeline

safety pursuant to 49 U.S.C. 60118(c).

2. OPS Evaluation of TGP’s Proposed

Alternative Risk Control Activities

Representatives from OPS

Headquarters and Southern Region

evaluated TGP’s proposed Activities.

OPS met with TGP to discuss the

current risk assessment and risk control

processes TGP uses, how these

processes were used to identify and

define the Activities, and the analysis of

the protection achieved by the Activities

compared to the protection 49 CFR

192.611 provides. The evaluation also

included an environmental assessment,

which is described in Appendix A of

this Notice. (Appendix A is available in

the Dockets Facility. See the ADDRESSES

Section above).

The TGP System transports

pressurized natural gas, which is lighter

than air and flammable. If released as a

result of a pipeline leak or rupture,

natural gas can potentially ignite

causing fires or explosions. Protection of

the public and environment by the

prevention of pipeline leaks and

ruptures is the highest priority for OPS

and TGP. A major review criterion for

this evaluation is whether the Activities

TGP has proposed will achieve a margin

of safety and environmental protection

comparable to that achieved through

compliance with 49 CFR 192.611. It is

the preliminary opinion of OPS that

implementing the proposed Activities

will result in a comparable margin of

safety and environmental protection.

Once OPS has considered comments

it receives in response to this Notice,

OPS will make a final determination

regarding whether to grant a waiver to

TGP to allow implementation of the

Activities in lieu of compliance with 49

CFR 192.611.

3. Alternative Risk Control Activity

Locations

The proposed Activities focus on

controlling the risks in four pipeline

segments located together in Tennessee.

These waiver segments are located on

the four parallel Lines 800–1, 500–1,

500–2, and 500–3, approximately 11.2

miles downstream of Compressor

Station 860. The waiver segments lie in

both Hickman and Dickson Counties,

Tennessee. The specific milepost (M.P.)

locations and lengths of the four

segments are:

Line 800–1: From M.P. 860–1+10.70 to M.P.

860–1+11.60 (4745 feet)

Line 500–1: From M.P. 559–1+10.72 to M.P.

559–1+11.58 (4521 feet)

Line 500–2: From M.P. 559–2+10.77 to M.P.

559–2+11.57 (4200 feet)

Line 500–3: From M.P. 559–3+11.35 to M.P.

559–3+11.64 (1540 feet)

4. Description of Waiver: Alternative

Risk Control Activities Designed To

Provide Comparable Margin of Safety

4.1 Current Regulatory Requirements

This section describes the current

regulatory requirements in 49 CFR

192.611 governing actions that must be

taken by a pipeline operator when

population density increases along a

pipeline.

OPS categorizes all locations along

natural gas pipelines according to the

population densities near the pipelines

(see 49 CFR 192.5). Locations with the

lowest population density (10 or fewer

buildings intended for human

occupancy within an area that extends

220 yards on either side of the

centerline of any continuous one mile

length pipeline) are designated as Class

1. As the population along a pipeline

increases, the class location increases.

For example, Class 2 locations have

more than 10 but fewer than 46

buildings intended for human

occupancy. Class 3 locations have 46 or

more buildings intended for human

occupancy, or are areas where a

pipeline lies within 100 yards of either

a building or small, well-defined

outside area (such as a playground,

recreation area, outdoor theater, or other

place of public assembly) that is

occupied by 20 or more persons on at

least 5 days a week for 10 weeks in any

12 month period. Class 4 locations are

any class location unit where buildings

with four or more stories above ground

are prevalent (e.g. large office

buildings).

All four of the TGP waiver segments

(identified in Section 3) have changed

from Class 2 to Class 3.

Pipeline safety regulations impose

more stringent design and operational

requirements as the class location

increases. When a class location

changes to a higher class (e.g., from

Class 2 to Class 3), the operator must

reduce the operating pressure on the

pipeline to provide an additional

margin of safety. The operator may be

able to avoid reducing pressure, in some

cases, if a pressure test on the pipe has

77424 Federal Register / Vol. 65, No. 238 / Monday, December 11, 2000 / Notices

confirmed that a prescribed safety

margin exists. In these cases, if a

previous pressure test has not confirmed

the prescribed safety margin, then the

operator must test the pipe to confirm

the margin. In other cases, the operator

must reduce the pressure or replace the

pipe with new pipe.

TGP has stated that in order to

provide reliable natural gas service to its

customers, it cannot permanently

reduce the operating pressure along the

waiver segments. Consequently, in order

to meet pipeline safety regulations, TGP

would be required to conduct a

requalification test or replace the pipe

in the four waiver segments. In some

portions of the waiver segments, current

regulations would require TGP to

replace the pipe. In other portions,

current regulations allow TGP to

conduct a requalification test (TGP has

already tested these portions). By

replacing the existing pipe with new

pipe that has the prescribed design

factor, TGP could eliminate the

possibility that defects in the original

materials and construction, as well as

corrosion that may have occurred since

installation, would result in a failure. By

conducting a requalification test, TGP

could verify the pipeline integrity.

4.2 TGP’s Proposed Alternative Risk

Control Activities

For each waiver segment, TGP

proposes to perform the following

alternative risk control activities, with

the objective of providing a margin of

safety and environmental protection

comparable to pipe replacement or

requalification testing:

5. Internally inspect the waiver

segments using geometry and magnetic

flux leakage in-line inspection tools,

which are not required under current

regulations. These tools reliably identify

indications of wall loss (e.g. corrosion),

as well as dents and gouges from initial

construction damage or third party

excavators working along the pipeline

right-of-way. These internal inspections

have been performed and the OPS

Southern region has reviewed the

inspection results.

6. Internally inspect an extended

length of pipe (the ‘‘extended

segments’’) bordering each waiver

segment to further extend the benefits of

the integrity analysis. The extended

segments cover the distance between

Compressor Station 860 and mainline

valves 861–1, 560–1, 560–2, and 560–3,

a distance of approximately 18.2 miles

on each pipeline.

7. Repair indications of corrosion,

existing construction damage, and

existing outside force damage identified

by the internal inspection. TGP used

more conservative investigation and

repair criteria in the waiver segments

and extended segments than is currently

required by the regulations. The criteria

call for investigation and repairs of

small dents and anomalies that are well

below the threshold where pipeline

integrity might be compromised.

8. Perform close-interval surveys on

the waiver segments and extended

segments, as an additional method to

detect possible pipeline corrosion.

Close-interval surveys are not required

on these segments under current

regulations. TGP has performed closeinterval surveys on approximately 18.2

miles of pipe on each line .

OPS has compared the expected risk

reduction produced by the Activities to

that which would be achieved by

compliance with current regulations

and concluded that the Activities will

likely achieve a margin of safety and

environmental protection comparable to

the margin which would be achieved

through compliance with 49 CFR

192.611. Furthermore, because of the

resources saved by not having to replace

pipe in the waiver segments, TGP will

be able to assess the integrity of

additional portions of its system, which

reduces the overall risks along the TGP

pipeline system.

5. OPS’s Proposed Action

Based on OPS’s evaluation of TGP’s

proposed Activities, OPS is considering

granting TGP a waiver from the pressure

confirmation and pipe replacement

requirements of 49 CFR 192.611.

This waiver accepts TGP’s

implementation of the Activities in lieu

of compliance with this requirement. In

addition, TGP along with OPS, would

be required to monitor the Activities’

effectiveness.

No more than 90 days after OPS

adopts new rules related to integrity

management of natural gas pipelines,

TGP will be required to re-evaluate the

terms and effects of this waiver and

report to OPS on whether the terms of

the waiver continue to be appropriate

and whether the overall effect of the

waiver remains consistent with pipeline

safety. If, after reviewing the TGP

evaluation and report, OPS determines

that the terms of the waiver are no

longer appropriate or that the overall

effect of the waiver is inconsistent with

pipeline safety, OPS will revoke the

waiver and require TGP to comply with

49 CFR 192.611 and all other applicable

regulations.

6. Regulatory Perspective

Why Is OPS Considering This Waiver?

OPS has determined that the terms of

the waiver are appropriate and that the

overall effect of the waiver is not

inconsistent with pipeline safety. The

following factors were considered when

making this determination:

1. The proposed activities will

provide comparable margin of safety

and protection for the environment and

the communities in the vicinity of TGP’s

pipelines;

2. The four waiver segments have a

good integrity history, with no leaks

recorded during operation or

hydrostatic testing.

3. TGP has internally inspected and

conducted close-interval surveys on a

total of 72.8 miles of pipe, including the

waiver segments. These activities add

protection against pipeline failures from

corrosion, manufacturing and

construction defects, and outside thirdparty damage along this full 72.8 mile

length. Compliance with 49 CFR

192.611 would require replacement of

pipe or requalification tests within the

waiver segments only (less than 3 miles

of pipe), with no added protection for

the extended segments (approximately

69 miles of pipe). The TGP Activities

provide added protection by including

the extended segments.

4. TGP was selected as a candidate for

the Risk Management Demonstration

Program and has participated in a

consultation process with OPS, which

included an enhanced sharing with OPS

of information related to the integrity

TGP’s pipeline.

How Will OPS Oversee the Activities?

OPS retains its authority to enforce

TGP’s compliance with the pipeline

safety regulations. OPS is only

considering whether to grant a waiver

from compliance with 49 CFR 192.611

at those four segments where TGP has

demonstrated that its proposed

Activities achieve a comparable margin

of safety and environmental protection.

Should any information subsequently

indicate that the terms of the waiver are

no longer appropriate or that the overall

effect of the waiver is inconsistent with

pipeline safety, then OPS retains its

authority to revoke the waiver and

require TGP to again comply with 49

CFR 192.611 and all other applicable

regulations.

This Notice is OPS’s final request for

public comment before OPS makes a

final decision on whether to grant the

waiver to TGP.

Issued in Washington, DC, on December 5,

2000.

Stacey L. Gerard,

Associate Administrator for Pipeline Safety.

[FR Doc. 00–31339 Filed 12–8–00; 8:45 am]

BILLING CODE 4910–60–U