[Federal Register Volume 74, Number 126 (Thursday, July 2, 2009)]
[Proposed Rules]
[Pages 31675-31686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15532]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Parts 191, 192, 193, and 195

[Docket No. PHMSA-2008-0291]
RIN 2137-AE33


Pipeline Safety: Updates to Pipeline and Liquefied Natural Gas 
Reporting Requirements

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
Department of Transportation (DOT).

ACTION: Notice of proposed rulemaking.

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SUMMARY: This Notice of Proposed Rulemaking seeks to revise the 
Pipeline Safety Regulations to improve the reliability and utility of 
data collections from operators of natural gas pipelines, hazardous 
liquid pipelines, and liquefied natural gas (LNG) facilities. These 
revisions will enhance PHMSA's ability to: understand, measure, and 
assess the performance of individual operators and industry as a whole; 
integrate pipeline safety data to allow a more thorough, rigorous, and 
comprehensive understanding and assessment of risk; and expand and 
simplify existing electronic reporting by operators. These revisions 
will improve both the data and the analyses PHMSA relies on to make 
critical, safety-related decisions, and will facilitate PHMSA's 
allocation of inspection and other resources based on a more accurate 
accounting of risk.

DATES: Submit comments by August 31, 2009.

ADDRESSES: Comments should reference Docket No. PHMSA-2008-0291 and may 
be submitted in the following ways:
    <bullet> E-Gov Web Site: http://www.regulations.gov. This Web site 
allows the public to enter comments on any Federal Register notice 
issued by any agency. Follow the instructions for submitting comments.
    <bullet> Fax: 1-202-493-2251.
    <bullet> Mail: Docket Management System: U.S. Department of 
Transportation, Docket Operations, M-30, Room W12-140, 1200 New Jersey 
Avenue, SE., Washington, DC 20590-0001.
    <bullet> Hand Delivery: DOT Docket Management System, West Building 
Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., Washington, DC 
20590-0001 between 9 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays.
    Instructions: If you submit your comments by mail, submit two 
copies. To receive confirmation that PHMSA received your comments, 
include a self-addressed stamped postcard.

    Note: Comments are posted without changes or edits to http://www.regulations.gov, including any personal information provided. 
There is a privacy statement published on http://www.regulations.gov.


FOR FURTHER INFORMATION CONTACT: Roger Little by telephone at (202) 
366-4569 or by electronic mail at <a href="/cdn-cgi/l/email-protection#5f2d30383a2d7133362b2b333a1f3b302b71383029"><span class="__cf_email__" data-cfemail="52203d3537207c3e3b26263e3712363d267c353d24">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Objective

    PHMSA is seeking to improve the use of incident, infrastructure, 
and performance data in its approaches to improve pipeline safety. As 
part of PHMSA's strategy to become a more risk-based and data-driven 
organization, PHMSA is proposing the following general data and data 
management improvements to the pipeline safety regulations:
    1. Modify the scope of part 191 addressed in 49 CFR 191.1 to 
reflect the changes made in the scope of part 192 to the definition of 
gas gathering lines.
    2. Change the definition of an ``incident'' in 49 CFR 191.3 to 
require an operator to report an explosion or fire not intentionally 
set by the operator. The proposal also establishes a volumetric basis 
for reporting unexpected or unintentional gas loss. These reporting 
changes will more accurately depict the safety performance of gas 
pipelines over time.
    3. Require operators to report and file data electronically 
whenever possible. The electronic submission of data will increase the 
accuracy and quality of data collected which, in turn, will improve 
PHMSA's data integration efforts. Electronic submission will also 
reduce the reporting burden on operators.
    4. Require operators of LNG facilities to submit incident and 
annual reports. This data will provide valuable infrastructure 
information to PHMSA,

[[Page 31676]]

and allow for a more thorough evaluation of the safety performance of 
LNG facilities.
    5. Create and require participation in a National Registry of 
Pipeline and LNG Operators. This data will provide PHMSA with timely 
updates on significant and potential safety-impacting changes occurring 
under its purview, and help PHMSA to better monitor and assess operator 
performance.
    6. Require operators to use a standard form in electronically 
submitting Safety-Related Condition Reports and Offshore Pipeline 
Condition Reports. This will ensure consistency of data submitted 
across the pipeline industry.
    7. Merge the natural gas transmission integrity management Semi-
Annual Performance Measures Report with the annual reports. Revise the 
leak cause categories listed in the annual report to include those nine 
categories listed in ASME B31.8S. This change will significantly reduce 
the reporting burden on operators by changing the current semi-annual 
requirement. Expand information on the natural gas transmission annual 
report to add information for miles of gathering lines by Type A and 
Type B gathering; class location information by SMYS, volume of 
commodity transported, and type of commodity transported.
    8. Modify hazardous liquid operator telephonic notification of 
accidents to require operators to have and use a procedure to calculate 
and report a reasonable initial estimate of released product and to 
provide an additional telephonic report to the National Response Center 
if significant new information becomes available during the emergency 
response phase.
    9. Require operators of hazardous liquid pipelines to submit 
pipeline information by State on the annual report for hazardous liquid 
pipelines. This data will allow PHMSA to improve its allocation of 
inspection and other resources through a better understanding of the 
infrastructure it regulates.
    10. Remove obsolete provisions that would conflict with the 
proposal to require electronic submission of all reports and update OMB 
control numbers for information collections.
    11. Update OMB control numbers assigned to information collections.

II. Background

    The statutory authority under 49 U.S.C. 60101 et seq. authorizes 
this proposal; these Federal Pipeline Safety Laws grant broad authority 
to the Pipeline and Hazardous Material Safety Administration to 
regulate pipeline safety. The proposed data collection and filing 
requirement revisions are wholly consistent with Section 15 of the 
PIPES Act of 2006 (Pub. L. 109-468, December 26, 2006), which requires 
PHMSA to review and modify the reporting criteria as appropriate to 
ensure that the data accurately reflects trends over time.
    For natural gas pipeline operators specific reporting requirements 
in 49 CFR Part 191 are found at:
    <bullet> Sec.  191.5 telephonic notice of certain incidents.
    <bullet> Sec.  191.7 Addresses for written reports.
    <bullet> Sec.  191.9 Natural gas distribution incident report.
    <bullet> Sec.  191.11 Natural gas distribution annual report.
    <bullet> Sec.  191.15 Natural gas transmission and gathering 
incident report.
    <bullet> Sec.  191.17 Natural gas transmission and gathering annual 
report.
    <bullet> Sec.  191.23 Reporting safety-related conditions.
    <bullet> Sec.  191.25 Filing safety-related condition reports.
    <bullet> Sec.  191.27 Filing offshore pipeline condition reports.
    The requirement for reporting leaks and spills of LNG in accordance 
with Part 191 is found at Sec.  193.2011. Part 191 excludes LNG from 
many of the reporting requirements.
    For hazardous liquid pipeline operators specific reporting 
requirements in 49 CFR Part 195 are found at:
    <bullet> Sec.  195.49 Annual report.
    <bullet> Sec.  195.50 Reporting accidents.
    <bullet> Sec.  195.52 Telephonic notice of certain accidents.
    <bullet> Sec.  195.54 Accident reports.
    <bullet> Sec.  195.55 Reporting safety-related conditions.
    <bullet> Sec.  195.56 Filing safety-related condition reports.
    <bullet> Sec.  195.57 Filing offshore pipeline condition reports.
    <bullet> Sec.  195.58 Address for written reports.
    As the Nation's repository for pipeline data, PHMSA's data is used 
not only by PHMSA, but by State pipeline safety programs; congressional 
committees; metropolitan planners; civic associations and other local 
community groups; pipeline research organizations; industry safety 
experts; industry watch groups; the media; the public; industry trade 
associations; industry consultants; and members of the pipeline and 
energy industries. A significant amount of critical safety information 
is cultivated from PHMSA's data through statistical analysis and 
information retrieval. One of the agency's most valued assets is the 
data it collects, maintains, and analyzes pertaining to the industry. 
PHMSA is responsible for maintaining the most comprehensive collection 
of accident/incident data for intrastate and interstate pipelines in 
the country. PHMSA is subject to constant and continued interest and 
scrutiny by numerous and varied stakeholders for the reliability, 
utility, and applicability of information and statistics pertaining to 
pipelines and LNG facilities, including the collection, tracking, and 
retrieval of historical data. PHMSA, therefore, must periodically 
modify its information and data collections and associated processes to 
address changes in industry business practices, changes in PHMSA's 
regulations, and changes in PHMSA's own data analysis strategies and 
objectives.
    As an example of one such needed change, LNG operators are 
currently exempt from annual and incident reporting requirements, 
whereas the operators of gas transmission, gas distribution, and 
hazardous liquid pipelines are required to report summary data annually 
and any incidents or accidents that meet reporting requirements 
specified in pipeline safety regulations. Given the increased number of 
LNG plants under construction, along with the understandable desire for 
PHMSA to better monitor the safety performance of this critical portion 
of the nation's energy infrastructure, this proposal removes the 
existing exemption for this reporting for operators of LNG facilities.
    This proposed rule also supports PHMSA's strategic objectives aimed 
at risk reduction and the continuous improvement of the integrity of 
the nation's pipeline systems. The data collection improvements 
proposed in this proposed rule will enhance PHMSA's standing analytical 
capability and strengthen PHMSA's understanding of risk, all based on 
sound data. PHMSA will use the data to help drive program priorities 
and resource decisions, improve the ability to detect emerging risks, 
and focus prevention activities.

III. Petitions for Rulemaking and Recommendations

Petition for Rulemaking

    On November 7, 2005, the Interstate Natural Gas Association of 
America (INGAA) submitted a Petition for Rulemaking asking PHMSA to 
change the definition of an incident to adequately provide a method to 
normalize skewing due to inflationary price increases of gas lost. 
INGAA asserted that the practical effect of the cost based reporting 
threshold has skewed the number of incidents

[[Page 31677]]

reported upwards as the cost of natural gas has continued to rise.
    Under the current definition, a reportable incident includes 
estimated property damage, including cost of gas lost, of the operator 
or others, or both, of $50,000 or more (49 CFR 191.3). In its petition, 
INGAA asserts that the current definition effectively froze the dollar 
amount of the cost of an incident to 1984/1985 levels. Therefore, INGAA 
claims that, although less gas is being released, more incidents are 
being reported because the price of gas has escalated over time. INGAA 
recommended PHMSA establish a volume-based threshold for a reportable 
incident. A copy of the petition is in the docket.

Recommendations

    This proposed rule also responds to various Government 
Accountability Office (GAO) and National Transportation Safety Board 
(NTSB) recommendations. In GAO's report, entitled ``Natural Gas 
Pipeline Safety: Integrity Management Benefits Public Safety, but 
Consistency of Performance Measure Should Be Improved,'' (GAO-06-946, 
September, 2006), GAO stated that the current gas incident reporting 
requirements do not adjust for the changing cost of gas released in 
incidents. GAO recommended that PHMSA ``revise the definition of a 
reportable incident to consider changes in the price of natural gas.''
    In this report GAO also recommended PHMSA revise reporting of 
performance measures for the integrity management programs to measure 
the impact of the program. GAO recommended that PHMSA improve the 
measures related to incidents, leaks, and failures to compare 
performance over time and make the measures more consistent with other 
pipeline safety measures. GAO also stated that the incident reporting 
requirements should adjust for changes in the price of natural gas, 
because the value of gas released is a key factor in determining 
whether an incident must be reported.
    The NTSB recommended that PHMSA modify 49 CFR 195.52 of the 
hazardous liquid regulations to require pipeline operators to have a 
procedure to calculate and provide a reasonable initial estimate of 
released product in the telephonic report to the National Response 
Center (NTSB Safety Recommendation P-07-07). NTSB also recommended that 
the hazardous liquid regulations require pipeline operators to provide 
an additional telephonic report to the National Response Center if 
significant new information becomes available during the emergency 
response (NTSB Safety Recommendation P-07-08).

IV. Section by Section Analysis

(1) Modifying the Scope of Part 191 To Reflect the Change to the 
Definition of Gas Gathering Lines

49 CFR 191.1
    On Wednesday, March 15, 2006, PHMSA published a new final rule, 
redefining the definition of gas gathering line. Part of that 
rulemaking effort changed the scope of Part 192 which is addressed in 
Sec.  192.1. However, this rulemaking project inadvertently overlooked 
making the corresponding changes to the scope of Part 191 in Sec.  
191.1 Because of this omission, operators of gathering lines have been 
reporting the number of miles of gas gathering lines by the old 
definition and not by the new. Sec.  191.1 would be changed to reflect 
the new gas gathering line definition.

(2) Changing the Definition of an ``Incident''

49 CFR 191.3
    This proposal would change the definition of an incident in 49 CFR 
191.3 to establish a new reporting category: an explosion or fire not 
intentionally set by the operator. This proposed change would make the 
definition consistent with the accident reporting criteria in 49 CFR 
Part 195. The proposal also establishes a volumetric basis of 3,000 MCF 
for reporting unintentional gas loss.
Justification
    Explosion or Fire Not Intentionally Set by the Operator
    Adding ``explosion or fire not intentionally set by the operator'' 
as a category to the definition of a reportable incident will enable 
PHMSA to gain information on significant incidents, as fires and 
explosions are major adverse outcomes that significantly raise the risk 
of death or injury from a pipeline failure. PHMSA's analysis of its 
accident/incident database showed the risk of death or injury increased 
by a magnitude of four-to-five times if there was a fire or explosion, 
compared to incidents without a fire or explosion. This revision would 
also make the natural gas pipeline incident reporting requirement 
consistent with the reporting requirement for hazardous liquid 
pipelines.
Volume Measure for Released Gas
    Under the existing definition, a reportable incident includes 
estimated property damage, including cost of gas lost, of the operator 
or others, or both, of $50,000 or more. Therefore, although less gas is 
being released, more incidents are being reported because the value of 
natural gas has escalated over time. This proposal would establish a 
volumetric basis for unplanned gas loss for reporting an incident.
    In November 2005, INGAA submitted a petition for rulemaking 
recommending PHMSA adopt a volume basis instead of the cost of gas 
lost. INGAA recommended 20,000 MCF (20 million standard cubic feet) as 
a reporting threshold. INGAA based this volume on the $50,000 reporting 
threshold and the 1985 cost of gas at $2.50 per MCF.
    The definition of the term ``incident'' affects both natural gas 
distribution and transmission operators. A strategy and proposed 
solution to address the problem posed by the escalating cost of gas 
therefore must apply to both natural gas distribution and transmission 
operators. Historical data indicates that INGAA's recommended amount of 
20,000 MCF is too high to have any impact on distribution incident 
reporting and would significantly reduce the number of gas transmission 
incident reports to PHMSA, inhibiting PHMSA's ability to accurately 
track the number of incidents and to learn from the already small 
number of reportable incidents that occur annually.
    PHMSA proposes to revise the definition of incident to add a 
reporting criterion for 3,000 MCF of gas lost. PHMSA believes that 
3,000 MCF more accurately represents the median volume of gas lost 
reported through transmission incident reports since 2002. The 3,000 
MCF proposed volume represents a large amount of gas from a small 
pipeline that would have less potential to do major damage, compared to 
a small amount of gas from a large pipeline (e.g. 30- to 40-inch 
diameter) that could cause major damage.

(3) Requiring Electronic Reporting and Filing of Reports

49 CFR 191.7 and 195.58
    We are proposing to require an operator of a regulated pipeline or 
facility as defined in Sec.  191.3 or Sec.  195.2 to submit all reports 
to PHMSA electronically.
Justification
    To improve the processing of submitted reports, PHMSA proposes to 
modify Sec. Sec.  191.7 and 195.58 to require electronic reporting and 
updating of operator data in PHMSA databases.
    Electronic data submission will enhance efficiency while reducing 
paperwork burdens.Currently, 55-80% of operators submit reporting data

[[Page 31678]]

electronically. The remaining operators submit large volumes of 
reporting data to PHMSA in paper format. Often these operators submit 
incomplete data, inconsistent data, and improperly filled-in forms. 
PHMSA lacks resources to verify individual data elements and seek 
further information to correct errors. Any PHMSA electronic filing 
requirement will be a function of the ability of the regulated industry 
to report data electronically to PHMSA. Given the size and 
technological capacity of pipeline operators, PHMSA believes the 
regulated industry has the required technological capability to provide 
required data to PHMSA electronically. However, should any operator 
lack the technological capacity for electronic reporting, we are 
proposing that the operator notify PHMSA and request an alternative to 
comply with this requirement. Such requests for alternative methods 
must be submitted to PHMSA by mail or fax. PHMSA specifically invites 
comments from operators on the burden the proposed electronic reporting 
requirement would impose.
    Mandatory electronic filing is wholly consistent with the E-
Government Act of 2002 (Pub. L. 107-347) and the Government Paperwork 
Elimination Act of 1998 (Pub. L. 105-277) requirements. By placing 
required data fields in an electronic form pipeline and liquefied 
natural gas facility operators will submit more concise, complete, and 
accurate information in a format that will improve PHMSA's ability to 
use the information, ensure compliance, and reduce risk. PHMSA has the 
authority and sufficient justification for requiring data collection on 
pipeline-related matters by electronic filing. As discussed above, 
electronic filing, as encouraged by the E-Gov initiative, will greatly 
benefit PHMSA. PHMSA has provided electronic reporting as a method of 
filing required reports since 2002. PHMSA believes the regulated 
industry possesses the technological expertise, skills, equipment 
(hardware and software), internet access etc., and, generally prefers 
to submit data electronically as opposed to hard copy. Some affected 
smaller business or individuals, however, may not have the required 
skills or equipment and the cost of acquiring these necessary resources 
for electronic filing could be costly. Therefore, PHMSA will provide 
alternatives, such as paper forms submitted though mail or facsimile, 
for those operators who notify PHMSA that they are unable to report 
electronically and request an alternative.
    As part of the revisions to Sec. Sec.  191.7 and 195.58, PHMSA 
proposes to remove the language on filing duplicate copies of annual 
and incident reports to State agencies because any State filing 
requirement is independent of PHMSA's requirements. With the new 
requirement to file reports electronically, we see this provision on 
State filing requirements as only adding confusion.
    We will continue to require safety-related condition reports to be 
submitted concurrently to the applicable State agency for intrastate 
pipeline transportation and on interstate transportation facilities, 
where the State acts as PHMSA's agent.

(4) Requiring LNG Operators To Submit Incident and Annual Reports

49 CFR 191.9, 191.15, 191.17 and 193.2011
    PHMSA proposes to amend Sec. Sec.  191.15, 191.17, and 193.2011 to 
require LNG facility operators to submit annual and incident reports 
consistent with the current reporting requirements for gas and 
hazardous liquid pipeline operators.
Justification
    Currently, 49 CFR 193.2011 requires LNG operators to report leaks 
and spills of LNG according to the requirements in Part 191. Part 191 
provides the requirements for Annual Reports, Incident Reports, and 
Safety Related Condition Reports. LNG facilities are exempt from the 
requirements for incident reporting in Sec.  191.15 and annual 
reporting in Sec.  191.17.
    Various GAO and internal assessments have identified the need for 
improved data quality in the area of LNG operations. PHMSA does not 
collect annual reports or incident reports for LNG facilities. These 
reports would provide timely information needed to improve PHMSA's 
ability to effectively evaluate the safety performance of the LNG 
industry, to monitor significant changes to plant or facility 
operations, and to aid regulatory decision making regarding LNG 
operations. PHMSA will also use the information for accurate user fee 
assessments.
    The proposed data collection and reporting requirements for LNG 
operators are consistent with the current PHMSA reporting requirements 
for gas and hazardous liquid pipeline operators.

(5) Creating a National Registry of Pipeline and LNG Operators

49 CFR 191.22 and 195.64
    In this proposed rule we are proposing that all regulated pipeline 
operators and LNG plant or LNG facility operators must obtain an 
Operator Identification (OPID) number from PHMSA. An ``operator'' of a 
regulated pipeline, pipeline facility, LNG plant or LNG facility--or 
group of regulated pipelines or facilities--as defined in Sec. Sec.  
191.3 and 195.2 will be required to submit all reports for those 
regulated pipelines or facilities using the assigned OPID for the 
specific pipeline segments or facilities for which the operator 
requested the OPID.
    This proposal would require operators to use this OPID for all 
submissions (National Pipeline Mapping System, Annual report, accident, 
incident, safety-related condition etc.) to PHMSA. If an operator has a 
single OPID, then all of its reporting to PHMSA for regulated 
pipelines, pipeline facilities, and/or LNG facilities will use the one 
number assigned to the company for those assets. If an operator has 
multiple OPIDs, the operator must determine which OPID is assigned to 
which specific and unique pipeline segments or facilities, and use that 
OPID consistently for those pipeline segments or facilities in 
reporting to PHMSA.
    To ensure consistency and accuracy of information collection, even 
those operators with an existing OPID must reapply. If the pipeline 
segments or facilities associated with an existing OPID have not 
changed, the existing OPID would not change. Changes to OPID assigned 
numbers would occur on a case-by-case basis depending on the extent of 
mergers, acquisitions, divestitures, etc. that have occurred since 
PHMSA assigned the existing OPID.
    We are also proposing that an operator notify PHMSA at least 60 
days in advance of certain profile or other changes to its facilities 
which could impact public safety. Such changes would include any of the 
following activities for an existing or new pipeline, pipeline segment, 
pipeline facility, LNG plant, or LNG facility:
    <bullet> A change in the operating entity responsible for operating 
an existing pipeline, pipeline segment, or facility.
    <bullet> A change in the operating entity responsible for managing 
or administering a safety program (such as an Integrity Management or 
Corrosion Protection Program) covering an existing pipeline, pipeline 
segment, or facility.
    <bullet> The acquisition or divestiture of 50 or more miles of an 
existing regulated pipeline or pipeline segment.
    <bullet> Any rehabilitation, replacement, modification, upgrade, 
uprate, or update costing $5 million or more.
    <bullet> The construction of 10 or more miles of a new hazardous 
liquid or gas

[[Page 31679]]

transmission pipeline facility, or other construction project costing 
$5 million or more.
    <bullet> The construction of a new LNG plant or LNG facility, or 
the sale or purchase of an existing LNG plant or LNG facility.
Justification
    A National Registry of Pipeline and LNG Operators will serve as the 
storehouse for the reporting requirements for an operator regulated or 
subject to reporting requirements under 49 CFR Parts 192, 193, or 195. 
Essential to the effectiveness of PHMSA's oversight is the ability to 
monitor and assess the performance of the regulated community--
examining both discrete performance as well as historical trending over 
time. The single greatest challenge to PHMSA's ability to track 
performance--and in particular, performance over time--is the dynamic 
nature of the regulated community itself. Due to conversions of 
service, new construction, and abandonments, or changes in operatorship 
that occur during divestitures, acquisitions, or contractual turnovers, 
operators' asset profiles often change year-to-year, rendering 
historical trending inaccurate. Currently, PHMSA does not receive any 
alerts, information, or notification of these types of changes and we 
lack any mechanism to track or capture these changes when they occur. 
As a result, PHMSA's ability to accurately portray and assess the 
performance of individual operators is severely compromised, with the 
problem deteriorating over time as operating and asset changes 
accumulate and compound.
    Additionally, there is an increased burden to industry and to PHMSA 
in tracking and maintaining potentially numerous OPID's for the same 
company. Some companies accumulate a large number of OPID's, often 
inadvertently, as the company reports across a variety of lines of 
business (e.g., operators may use separate OPID's for reporting their 
user fee mileage, safety-related conditions, National Pipeline Mapping 
System (NPMS) submissions, incidents, and annual infrastructure and 
integrity management data.) The proposed National Registry of Pipeline 
and LNG Operators will facilitate the use of one OPID across a 
company's reporting requirements for a given set of pipeline segments 
or facilities thereby reducing the burden on both PHMSA and industry 
for tracking these multiple, duplicative OPID's.
    This proposed rulemaking will also require operators to notify 
PHMSA when they experience significant asset changes that affect 
PHMSA's ability to accurately monitor and assess pipeline safety 
performance. Certain types of changes to or within an operator's 
facilities or pipeline network represent potential safety-altering 
activities for which PHMSA may need to inspect, investigate, or 
otherwise oversee to ensure that any public safety concerns are 
adequately and proactively addressed. In these cases, this timely 
notification will allow PHMSA to mobilize inspection resources or 
notify one of its partner State pipeline safety agencies if needed.
    This proposed Registry would include mandatory registration and 
notification requirements, which do not exist within PHMSA's current 
OPID assignment process. This Registry is necessary to compile an 
integrated national pipeline inventory of operator contact and facility 
information that is sustainable and can evolve over time to accommodate 
an ever-changing environment. Implementing a National Registry of 
Pipeline and LNG Operators will ensure that PHMSA's communications with 
representatives of the regulated community are complete and accurate, 
achieving a level of assurance that does not exist within PHMSA's 
existing OPID assignment process. The proposed Registry will also 
enable PHMSA to distribute up-to-date pipeline safety information for 
various technology applications used in the performance of inspections, 
regulatory oversight, reporting, and other safety-based needs, and will 
provide the accurate and up-to-date compilation of operating entities 
and facilities that is a critical element of PHMSA's pipeline safety 
mission.
    Moreover, the accurate and timely representation of the scope and 
make-up of the nation's pipeline and LNG facility infrastructure is not 
only critical to PHMSA, but it is also critical to the various 
oversight bodies, Congress, the GAO, the DOT Inspector General, and the 
NTSB. Other stakeholders such as safety and environmental advocacy 
groups, and State and local pipeline safety partners also rely on the 
accuracy and completeness of this information.

(6) Requiring Electronic Safety-Related Condition and Offshore Pipeline 
Condition Reports

49 CFR 191.25, 191.27, 195.56, 195.57 and 195.58
    We are proposing to require an operator of a natural gas or 
hazardous liquid pipeline, or of an LNG plant or LNG facility to use a 
new standardized form instead of the free-form Safety-Related Condition 
reporting now used. The requirement under Sec.  191.7 and under Sec.  
195.58 to file Safety-Related Condition reports concurrently with State 
agencies under the conditions outlined in those sections for filing 
with State agencies would still apply.
    We are also proposing to require an operator of a hazardous liquid 
pipeline to use a new standardized form instead of the free-form 
Offshore Pipeline Condition Report now used.
Justification
    PHMSA requires an operator of a natural gas pipeline or LNG plant 
or LNG facility to report the existence of a safety-related condition 
(SRC) meeting the criteria specified in Sec.  191.23. Hazardous liquid 
operators must report a SRC using the criteria in Sec.  195.55. An 
operator must file a report within five working days after 
determination but no later than ten working days after discovery of the 
condition. Reports are sent by facsimile to PHMSA. This proposed rule 
proposes to amend Sec. Sec.  191.25, 195.56 and 195.58 to require 
operators to submit the information electronically through a 
standardized form.
    For offshore pipeline conditions, PHMSA requires an operator to 
report certain information within 60 days after completion of the 
inspection of all its underwater pipelines subject to Sec.  192.6(2a) 
or Sec.  195.413(a). This proposed rule proposes to obtain this 
information on a standardized form, filed electronically with PHMSA.
    These proposed requirements will ensure that PHMSA obtains all the 
pertinent information it needs to perform its assessments and safety 
analyses; ensure that operators report all the required data; ensure 
consistent reporting across the regulated community; reduce the data 
management burden on PHMSA; and, reduce the reporting burden on 
operators. A copy of each form is available in the docket.

(7) Merging the Gas Transmission Integrity Management Semi-Annual 
Performance Measures Report With the Gas Transmission Operator Annual 
Reports

49 CFR 192.945 and 192.951
    PHMSA is proposing to merge the gas transmission Integrity 
Management Program semi-annual performance measures reports with the 
annual reports.
Justification
    Operators of gas transmission pipelines subject to Subpart O, 
``Pipeline Integrity Management'', must

[[Page 31680]]

submit four overall measures of their integrity management performance 
on a semi-annual basis, as required by Sec.  192.945. On December 15, 
2003, PHMSA published a new Subpart O to the regulations governing 
safety of gas pipelines in 49 CFR Part 192 (68 FR 69778). Subpart O 
establishes requirements governing integrity management programs for 
gas transmission pipelines. Included among these provisions are 
requirements for each gas transmission pipeline operator to maintain 
quantitative measures of its integrity management performance as 
specified in ASME/ANSI B31.8S, ``Managing System Integrity of Gas 
Pipelines'', Section 9.4 (49 CFR 192.945). The same regulation requires 
that each operator submit the performance measures to PHMSA semi-
annually. The report on performance measures collects information on 
the number of pipeline miles inspected; the number of immediate repairs 
completed; the number of scheduled repairs completed; and the number of 
leaks, failures, and incidents in the High Consequence Areas.
    A consequence of moving these reporting requirements to a gas 
transmission operator's annual report for ASME/ANSI B31.8S performance 
metrics is that the annual report is by State. Moreover, for the ASME/
ANSI B31.8S performance metrics, the annual report will seek separate 
reporting for interstate and intrastate facilities and system 
information. Operators will identify if they are interstate or 
intrastate. If an operator has interstate mileage it will be able to 
report by State or have the data rolled up into a single report. If an 
operator is an intrastate operator, the report is already by State. The 
acceptable means for submitting reports required by Subpart O are in 49 
CFR 192.951.
    In addition, PHMSA is proposing that operators submit the required 
performance measures through the annual report required in Sec.  
191.17. This regulatory change will reduce the reporting burden of the 
industry from twice a year to once a year and will allow PHMSA to 
identify the location of the inspection, repairs, leaks, failure, and 
incidents in a high consequence area.
    The existing section on the annual report for reporting total leaks 
eliminated or repaired during the year has seven cause categories, 
while the equivalent information on the biannual reporting for gas 
integrity management, as specified in ASME B31.8s, has nine cause 
categories. GAO noted the inconsistency in its report (GAO-06-946), 
``Natural Gas Pipeline Safety: Integrity Management Benefits Public 
Safety, but Consistency of Performance Measure Should Be Improved.'' 
GAO recommended PHMSA improve the measures related to incidents, leaks, 
and failures to better allow for optimal comparison of performance over 
time and make them more consistent with other pipeline safety measures. 
To achieve consistency PHMSA proposes to revise the annual report form 
DOT form 7100.2-1 to replace the seven annual report leak cause 
categories with the ASME B31.8s nine cause categories. A copy of the 
revised annual report is available for review in the public docket.
    The ASME B31.8s nine cause categories are as follows:
    <bullet> External Corrosion.
    <bullet> Internal Corrosion.
    <bullet> Stress Corrosion Cracking.
    <bullet> Manufacturing.
    <bullet> Construction.
    <bullet> Equipment.
    <bullet> Third Party Damage/Mechanical Damage.
    <bullet> Incorrect Operations.
    <bullet> Weather Related/Other Outside Force.
    The existing seven cause categories on the Gas Transmission and 
Gathering System Annual Report are as follows:
    <bullet> Corrosion.
    <bullet> Natural Forces.
    <bullet> Excavation.
    <bullet> Other Outside Force Damage.
    <bullet> Material and Welds.
    <bullet> Equipment and Operations.
    <bullet> Other.
    PHMSA also seeks expanded information on mileage by Type A and Type 
B gathering lines (refer to 49 CFR 192.8 and 192.9); expanded 
information on class location by specified minimum yield strength 
(SMYS) to better understand the effects of recent ``special permits'' 
and the final rule (Pipeline Safety: Standards for Increasing the 
Maximum Allowable Operating Pressure for Gas Transmission Pipelines; 73 
Fed. Reg. 62148: October 17, 2008) allowing operators to operate 
certain pipelines at up to 80% SMYS; and information on volume and 
commodity transported to better understand system miles by product type 
(propane vs. natural gas for example). The expanded information will 
enhance our ability to effectively understand the need for further 
expansion of regulations for gathering lines and high stress lines.

(8) Modifying Hazardous Liquid Operator Telephonic Notification of 
Accidents Reporting Requirement

49 CFR 195.52
    This proposal would require an operator to have a procedure to 
calculate and provide a reasonable initial estimate of released product 
in telephonic reports to the National Response Center (NRC). An 
operator would also be required to provide additional telephonic 
reports to the NRC if significant new information becomes available 
during the emergency response phase of a reported event.
Justification
    The NTSB recommended that PHMSA modify 49 CFR 195.52 to require 
hazardous liquid pipeline operators to have a procedure to calculate 
and provide a reasonable initial estimate of released product in the 
telephonic report to the National Response Center (NTSB Safety 
Recommendation P-07-07). The NTSB also recommended that PHMSA modify 
the hazardous liquid telephonic notice regulation section to require 
pipeline operators to provide an additional telephonic report to the 
National Response Center if significant new information becomes 
available during the emergency response phase of a reported event (NTSB 
Safety Recommendation P-07-08).

(9) Requiring Operators of Hazardous Liquid Pipelines To Report 
Pipeline Information by State on the Annual Report for Hazardous Liquid 
Pipelines

49 CFR 195.49
    This proposal would require operators of hazardous liquid pipelines 
to submit certain infrastructure and integrity management data for each 
State a pipeline traverses.
Justification
    Currently, natural gas transmission pipeline operators submit 
State-specific annual reports that give PHMSA a sound and basic 
understanding of the location, scope, and nature of the pipeline 
facilities subject to its regulations. Hazardous liquid pipeline 
operators do not report State-specific information on their annual 
reports. These reports show the mileage and characteristics of the 
hazardous liquid pipelines operated by approximately 314 operators with 
about 165,000 miles of pipelines. These annual reports only contain 
nationally aggregated information for the general characteristics of 
the hazardous liquid pipelines, along with fundamental integrity 
management information. Nationally aggregated information does not 
provide the granularity of data that is critical to PHMSA's 
understanding of the risks posed by, as well as the condition of, these 
pipelines. Although PHMSA's NPMS maintains location information on 310 
operators reporting

[[Page 31681]]

over 175,000 miles of pipe, none of these submittals contains the 
desired State-specific pipeline characteristics or integrity management 
information PHMSA needs to effectively understand, monitor, and assess 
safety performance and risks more discretely.
    This more granular level of understanding and analysis is critical 
to PHMSA's fundamental safety mission. Capturing this State-specific 
information for both gas transmission and hazardous liquid pipelines 
provides PHMSA with the data necessary to identify areas of potential 
high risk and allocate agency resources accordingly. Without this 
information, PHMSA cannot differentiate risks and exposures on a State 
or regional basis, thereby precluding efforts to allocate internal 
resources based on risk or accurately portray and assess the 
performance of its various enforcement Regions or individual partner 
State pipeline safety agencies. The absence of this information also 
severely limits PHMSA's ability to analyze risks and identify safety 
issues that may be specific to a particular State or region. 
Additionally, this level of information would facilitate PHMSA's 
efforts to reconcile discrepancies between operator NPMS submissions 
and information submitted through annual reports.
    Many States have pipeline safety programs that operate as either 
PHMSA-certified interstate or PHMSA-certified intrastate agents for 
hazardous liquid pipelines. PHMSA helps to fund these State programs to 
reimburse costs for inspections and other safety activities. PHMSA 
needs to have a full and complete understanding of the scope, nature, 
and extent of the pipeline infrastructure under each State's purview to 
be able to assess the effectiveness of funding State pipeline programs 
for these activities, and to effectively assess, monitor, and compare 
the State's respective safety performance. Similarly, State pipeline 
program managers need this same information to plan and manage their 
own programs.
    PHMSA conducted preliminary discussions on the reporting by State 
proposal with representatives of the hazardous liquid pipeline 
community. These preliminary discussions were held during meetings with 
an industry data team consisting of representatives from American 
Petroleum Institute (API), Association of Oil Pipe Lines (AOPL), and 
hazardous liquid pipeline operators. This industry data team generally 
supported reporting by State for the specific areas that PHMSA proposes 
to obtain annual report information by State. PHMSA was also urged to 
consider an efficient method for the collection of the proposed 
information.
    Members of the industry data team also requested PHMSA consider 
obtaining infrastructure and integrity management (IM) information 
through the NPMS. PHMSA acknowledges the potential benefits of NPMS 
submission of infrastructure and IM information. NPMS submission of the 
information would greatly enhance PHMSA's ability to make informed 
safety-related assessments and decisions. PHMSA is also mindful of the 
costs associated with submitting the proposed information via the NPMS 
as opposed to other means. PHMSA would have to modify the existing 
geospatial technological architecture of the NPMS to accept the 
substantial data elements that would have to be submitted if the NPMS 
were to generate the proposed State totals. These modifications would 
be costly and are not currently budgeted or planned. To retrofit the 
NPMS into a format that could accept the substantial data elements 
requires several years of planning and extensive work by PHMSA. 
Additionally, we need to determine the percentage of the hazardous 
liquid operators with the capability to submit information using 
geospatial technology. Many small companies are not API or AOPL members 
and we need to better understand the overall abilities and capabilities 
of the industry before considering this method for the collection of 
information. This proposed rule therefore seeks comment from any 
hazardous liquid operator that could not provide information via a 
geospatial tool.
    PHMSA agrees with the potential benefits of NPMS submission for 
this information. Like the industry data team, PHMSA also recognizes 
that having the information in a GIS tool greatly facilitates the ease 
with which such tables can be computed and produced. Although the 
industry data team believes that virtually all of the API and AOPL 
members have information in GIS tools, preliminary results from a joint 
OPS and industry pilot project indicate that industry may not have any 
additional information other than currently collected in NPMS, in GIS 
format.
    Therefore, PHMSA is requesting comments on whether infrastructure 
and IM information through NPMS is a better alternative that operators 
could easily implement. For now, PHMSA will continue to collect the 
information through the Annual Report until PHMSA determines that 
industry has the capability to convert its technological platform into 
a format that could accept the submission via GIS tool and that the 
entire industry could adhere to such a format.

(10) Removing Obsolete Provisions

49 CFR 191.19, 191.27, 195.57 and 195.62
    PHMSA proposes to remove or revise the following provisions in 
light of the proposal to require electronic submission of all reports. 
Electronic reporting makes these requirements obsolete.
    <bullet> Remove Sec.  191.19, which advises operators they may 
obtain, without charge, copies of paper report forms and reproduce the 
forms.
    <bullet> Remove Sec. Sec.  191.27(b) and 195.57(b), which require 
mailing hard copies of Offshore Pipeline Condition reports.
    <bullet> Revise Sec.  195.54 to remove the option to file an 
accident report by facsimile.
    <bullet> Remove Sec.  195.62, which requires operators to maintain 
an adequate supply of forms that are a facsimile of DOT accident report 
forms so that the operator may promptly report an accident.
    Hard copies of forms will continue to be available on PHMSA's Web 
site at http://phmsa.dot.gov/pipeline.

(11) Updating OMB Control Numbers

49 CFR 191.21 and 195.63
    PHMSA proposes to update these sections to add new OMB control 
numbers for the new forms (and information collection) proposed in this 
proposed rule. There will be new forms for reporting safety-related and 
offshore pipeline conditions, LNG incidents and for submitting an LNG 
annual report.

V. Regulatory Analyses and Notices

Executive Order 12866 and DOT Policies and Procedures

    This proposed rule is not a significant regulatory action under 
section 3(f) of Executive Order 12866 (58 FR 51735) and, therefore, was 
not reviewed by the Office of Management and Budget. This proposed rule 
is not significant under the Regulatory Policies and Procedures of the 
Department of Transportation (44 FR 11034).
    Overall, the costs of the proposed rule are expected to be 
approximately $1.9 million per year. The present value of this cost 
over 10 years using a 3 percent discount rate is approximately $17 
million, while its present value over 10 years using a 7 percent 
discount rate is approximately $14 million. Those costs cover changes 
to the 49 CFR to enhance

[[Page 31682]]

general data and data management improvements for pipelines.
    The average of the present value of net benefits over 10 years at a 
3 percent discount rate is approximately $76 million and approximately 
$62 million at 7 percent.
    The benefits of the proposed rule enhance PHMSA's ability to 
understand, measure, and assess the performance of individual operators 
and industry as a whole; integrate pipeline safety data in a way that 
will allow a more thorough, rigorous, and comprehensive understanding 
and assessment of risk; expand and simplify existing electronic 
reporting by operators; improve the data and analyses PHMSA relies on 
to make critical, safety-related decisions; and facilitate PHMSA's 
allocation of inspection and other resources based on a more accurate 
accounting of risk.
    A comparison of the benefits and costs of the rule results in 
positive net benefits. The present value of net benefits (the excess of 
benefits over costs) for the proposed rule is approximately $59 million 
using a three percent discount rate and $48 million using a seven 
percent discount rate. A copy of the regulatory evaluation is available 
for review in the docket.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, as amended, requires 
Federal agencies to conduct a separate analysis of the economic impact 
of rules on small entities. The Regulatory Flexibility Act requires 
that Federal agencies take small entities' concerns into account when 
developing, writing, publicizing, promulgating, and enforcing 
regulations. The modifications noted in the proposed rule will affect 
hazardous liquid, natural gas pipelines (distribution and 
transmission), and LNG facility operators. PHMSA does not collect 
information on number of employees or revenues for pipeline operators. 
Such a collection would require OMB approval. Nevertheless, PHMSA 
continues to seek information (and invites comments on this subject) 
about the number of small pipeline operators to more fully determine 
impact on small entities.
    The Small Business Administration (SBA) size standards for 
hazardous liquid operators are companies with less than 1,500 
employees, including employees of parent corporations. The SBA size 
standards are $6.5 million in annual revenues for the natural gas 
transmission pipeline industry and 500 employees for the natural gas 
distribution industry.
    PHMSA has reviewed the data it collects from the hazardous liquid 
pipeline industry and has estimated there are 10 to 20 small entities 
in this industry. PHMSA estimates that about 480 of the gas 
transmission and gathering firms have less than $6.5 million in 
revenues and about 1,000 gas distribution firms have fewer than 500 
employees. Information on the market structure of the LNG industry is 
scarce\\ but the estimated reporting cost to LNG facilities' operators 
is very low, and thus, PHMSA assumes that LNG facilities operators, 
large or small, will not be adversely affected by the requirements in 
the proposed rule.
    The average annual cost of the increased reporting burden of the 
proposed rule ranges from $3,804 to $5,649 for small hazardous liquid 
operators, $231 to $385 for small natural gas operators and from $683 
to $1,103 for liquefied natural gas operators. These preliminary 
results suggest that there is not a significant impact on a substantial 
number of small entities.

Executive Order 13175

    PHMSA has analyzed this proposed rule according to the principles 
and criteria in Executive Order 13175, ``Consultation and Coordination 
with Indian Tribal Governments.'' Because this proposed rule would not 
significantly or uniquely affect the communities of the Indian Tribal 
governments or impose substantial direct compliance costs, the funding 
and consultation requirements of Executive Order 13175 do not apply.

Paperwork Reduction Act

    This proposed rule may result in revisions to several currently 
approved information collections. The following list contains the 
potentially impacted information collections and their current approval 
information:

 
----------------------------------------------------------------------------------------------------------------
                                                                                      Current        Currently
         OMB Control No.                       Info collection title                expiration       approved
                                                                                       date        burden hours
----------------------------------------------------------------------------------------------------------------
1. 2137-0047.....................  Transportation of Hazardous Liquids by             11/30/2011          51,011
                                    Pipeline: Recordkeeping and Accident
                                    Reporting.
2. 2137-0522.....................  Incident and Annual Reports for Gas Pipeline       11/30/2010          36,105
                                    Operators.
3. 2137-0578.....................  Reporting Safety-Related Conditions on Gas,         2/28/2011             390
                                    Hazardous A Liquid, and Carbon Dioxide
                                    Pipelines and Liquefied Natural Gas
                                    Facilities.
4. 2137-0610.....................  Pipeline Integrity Management in High               6/30/2009       1,030,309
                                    Consequence Areas Gas Transmission Pipeline
                                    Operators.
5. 2137-0614.....................  Pipeline Safety: New Reporting Requirements         6/30/2010           5,364
                                    for Hazardous Liquid Pipeline Operators:
                                    Hazardous Liquid Annual Report.
----------------------------------------------------------------------------------------------------------------

    Pursuant to 5 CFR 1320.8(d), PHMSA is required to provide 
interested members of the public and affected agencies with an 
opportunity to comment on information collection and recordkeeping 
requests. This notice identifies revised information collection 
requests that PHMSA will submit to the Office of Management and Budget 
(OMB) for approval based on the requirements in this proposed rule.
    PHMSA has developed revised burden estimates to reflect changes in 
this proposed rule. PHMSA estimates that, based on the proposals in 
this rule, the current information collection burden for these 
information collections will be revised as follows:
    1. Title of information Collection: Transportation of Hazardous 
Liquids by Pipeline: Recordkeeping and Accident Reporting.
    OMB Control Number: 2137-0047.
    Total Annual Number of Respondents: 300.
    Total Annual Responses: 450.
    Total Annual Burden Hours: 51,011.
    Total Annual Burden Cost: $3,302,962.25.
    2. Title of information Collection: Incident and Annual Reports for 
Gas Pipeline Operators.
    OMB Control Number: 2137-0522.
    Total Annual Number of Respondents: 2,289.
    Total Annual Responses: 5,629.

[[Page 31683]]

    Total Annual Burden Hours: 63,153.
    Total Annual Burden Cost: $2,910,448.
    3. Title of information Collection: Reporting Safety-Related 
Conditions on Gas, Hazardous A Liquid, and Carbon Dioxide Pipelines and 
Liquefied Natural Gas Facilities.
    OMB Control Number: 2137-0578.
    Total Annual Number of Respondents: 2,673.
    Total Annual Responses: 718.
    Total Annual Burden Hours: 1,512.
    Total Annual Burden Cost: $46,620.
    4. Title of information Collection: Pipeline Integrity Management 
in High Consequence Areas Gas Transmission Pipeline Operators.
    OMB Control Number: 2137-0610.
    Total Annual Number of Respondents: 721.
    Total Annual Responses: 721.
    Total Annual Burden Hours: 1,018,773.
    Total Annual Burden Cost: $65,967,753.00.
    5. Title of information Collection: Pipeline Safety: New Reporting 
Requirements for Hazardous Liquid Pipeline Operators: Hazardous Liquid 
Annual Report.
    OMB Control Number: 2137-0614.
    Total Annual Number of Respondents: 300.
    Total Annual Responses: 447.
    Total Annual Burden Hours: 11,748 hours.
    Total Annual Burden Cost: $760,683.00.
    Requests for a copy of the information collection should be 
directed to Cameron Satterthwaite, U.S. Department of Transportation, 
Office of Regulations, Pipeline and Hazardous Materials Safety 
Administration, 1200 New Jersey Avenue, SE., East Building, 2nd Floor, 
Washington, DC 20590-0001, Telephone (202) 366-4046.
    All comments should be addressed to the Dockets Unit as identified 
in the ADDRESSES section of this proposed rule and received prior to 
the close of the comment period identified in the DATES section of this 
proposed rule.
    We specifically request comments on the information collection and 
recordkeeping burden associated with developing, implementing, and 
maintaining these requirements for approval under this proposed rule.

Unfunded Mandates Reform Act of 1995

    This proposed rule would not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It would not result in costs of 
$100 million, adjusted for inflation, or more in any one year to either 
State, local, or Tribal governments, in the aggregate, or to the 
private sector, and is the least burdensome alternative that achieves 
the objective of the proposed rulemaking.

National Environmental Policy Act

    PHMSA analyzed this proposed rule in accordance with section 
102(2)(c) of the National Environmental Policy Act (42 U.S.C. 4332), 
the Council on Environmental Quality regulations (40 CFR 1500-1508), 
and DOT Order 5610.1C, and has preliminarily determined this action 
will not significantly affect the quality of the human environment. The 
Environmental Assessment for this proposed action is in the docket.

Executive Order 13132

    PHMSA has analyzed this proposed rule according to Executive Order 
13132 (``Federalism''). The proposed rule does not have a substantial 
direct effect on the States, the relationship between the national 
government and the States, or the distribution of power and 
responsibilities among the various levels of government. This proposed 
rule does not impose substantial direct compliance costs on State and 
local governments. This proposed rule would not preempt State law for 
intrastate pipelines. Therefore, the consultation and funding 
requirements of Executive Order 13132 do not apply.

Executive Order 13211

    This proposed rule is not a ``significant energy action'' under 
Executive Order 13211 (Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use). It is not 
likely to have a significant adverse effect on supply, distribution, or 
energy use. Further, the Office of Information and Regulatory Affairs 
has not designated this proposed rule as a significant energy action.

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 (70 FR 19477) or 
visit http://dms.dot.gov.

List of Subjects

49 CFR Part 191

    Pipeline safety, Reporting and recordkeeping requirements.

49 CFR Part 192

    Pipeline safety, Fire prevention, Security measures.

49 CFR Part 193

    Pipeline safety, Fire prevention, Security measures, and Reporting 
and recordkeeping requirements.

49 CFR Part 195

    Ammonia, Carbon dioxide, Incorporation by reference, Petroleum, 
Pipeline safety, Reporting and recordkeeping requirements.

    In consideration of the foregoing, we propose to amend 49 CFR 
Chapter I as follows:

PART 191--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE; 
ANNUAL REPORTS, INCIDENT REPORTS, AND SAFETY-RELATED CONDITION 
REPORTS

    1. The authority citation for Part 191 continues to read as 
follows:

    Authority: 49 U.S.C. 5121, 60102, 60103, 60104, 60108, 60117, 
60118, and 60124, and 49 CFR 1.53.

    1a. In Sec.  191.1, paragraph (b)(4) is revised to read as follows:


Sec.  191.1  Scope.

* * * * *
    (b) * * *
    (4) Onshore gathering of gas--
    (i) Through a pipeline that operates at less than 0 psig (0 kPa);
    (ii) Through a pipeline that is not a regulated onshore gathering 
line (as determined in Sec.  192.8 of this subchapter); and
    (iii) Within inlets of the Gulf of Mexico, except for the 
requirements in Sec.  192.612.
    2. In Sec.  191.3, the definition of ``Incident'' is revised to 
read as follows:


Sec.  191.3  Definitions.

* * * * *
    Incident means any of the following events:
    (1) An event that involves a release of gas from a pipeline, or of 
liquefied natural gas, liquefied petroleum gas, refrigerant gas, or gas 
from an LNG facility, and that results in one of the following 
consequences:
    (i) A death, or personal injury necessitating in-patient 
hospitalization;
    (ii) Estimated property damage of $50,000 or more, including loss 
to the operator and others, or both;
    (iii) Estimated gas loss of 3,000 million cubic feet or more;
    (iv) An explosion or fire not intentionally set by the operator.
    (2) An event at an LNG plant or LNG facility that results in an 
emergency shutdown, excluding the activation of emergency shutdown 
devices for maintenance.
    (3) An event that is significant in the judgment of the operator, 
even though it

[[Page 31684]]

did not meet the criteria of paragraphs (1) or (2) of this definition.
* * * * *
    3. Section 191.7 is revised to read as follows:


Sec.  191.7  Report submission requirements.

    (a) General. An operator must submit each report required by this 
Part electronically to the Pipeline and Hazardous Materials Safety 
Administration at http://opsweb.phmsa.dot.gov. If electronic reporting 
imposes an undue burden and hardship, the operator must submit a 
written request for an alternative reporting method to the Information 
Resources Manager, Office of Pipeline Safety, Pipeline and Hazardous 
Materials Safety Administration, PHP-10, 1200 New Jersey Avenue, SE., 
Washington, DC 20590. The request must describe the undue burden and 
hardship and be sent at least 60 days prior to the due date of the 
report.
    (b) Safety-related conditions. An operator must submit concurrently 
to the applicable State agency a safety-related condition report 
required by Sec.  191.23 for intrastate pipeline transportation or when 
the State agency acts as an agent of the Secretary with respect to 
interstate transmission facilities.
    4. In Sec.  191.9, paragraph (c) is revised to read as follows:


Sec.  191.9  Distribution system: Incident report.

* * * * *
    (c) Master meter operators are not required to submit an incident 
report as required by this section.
    5. Section 191.11 is revised to read as follows:


Sec.  191.11  Distribution system: Annual report.

    (a) General. Except as provided in paragraph (b) of this section, 
each operator of a distribution pipeline system must submit an annual 
report for that system on DOT Form PHMSA F 7100.1-1. This report must 
be submitted each year, not later than March 15, for the preceding 
calendar year.
    (b) Not required. The annual report requirement in this section 
does not apply to a master meter system or to a petroleum gas system 
that serves fewer than 100 customers from a single source.
    6. Section 191.15 is revised to read as follows:


Sec.  191.15  Transmission systems; gathering systems; and liquefied 
natural gas facilities: Incident report.

    (a) General. Each operator of a transmission or a gathering 
pipeline system must submit DOT Form PHMSA F 7100.2 as soon as 
practicable but not more than 30 days after detection of an incident 
required to be reported under Sec.  191.5 of this subchapter.
    (b) LNG. Each operator of a liquefied natural gas plant or facility 
must submit DOT Form PHMSA F [INSERT FORM NUMBER] as soon as 
practicable but not more than 30 days after detection of an incident 
required to be reported under Sec.  191.5 of this subchapter.
    (c) Supplemental report. Where additional related information is 
obtained after a report is submitted under paragraph (a) or (b) of this 
section, the operator must make a supplemental report as soon as 
practicable with a clear reference by date and subject to the original 
report.
    7. Section 191.17 is revised to read as follows:


Sec.  191.17  Transmission systems; gathering systems; and liquefied 
natural gas facilities: Annual report.

    (a). General. Each operator of a transmission or a gathering 
pipeline system must submit an annual report for that system on DOT 
Form PHMSA 7100.2.1. This report must be submitted each year, not later 
than March 15, for the preceding calendar year.
    (b) LNG. Each operator of a liquefied natural gas facility must 
submit an annual report for that system on DOT Form PHMSA [INSERT FORM 
NUMBER]. This report must be submitted each year, not later than March 
15, for the preceding calendar year.


Sec.  191.19  [Removed]

    8. Section 191.19 is removed.
    9. Section 191.21 is revised to read as follows:


Sec.  191.21  OMB control number assigned to information collection.

    This section displays the control number assigned by the Office of 
Management and Budget (OMB) to the information collection requirements 
in this Part. The Paperwork Reduction Act requires agencies to display 
a current control number assigned by the Director of OMB for each 
agency information collection requirement.
    OMB Control Number 2137-0522

------------------------------------------------------------------------
    Section of 49 CFR part 191 where
               identified                            Form No.
------------------------------------------------------------------------
191.5..................................  Telephonic
191.9..................................  PHMSA 7100.1
191.11.................................  PHMSA 7100.1-1
191.15.................................  PHMSA 7100.2
191.17.................................  PHMSA 7100.2-1
191.22.................................  PHMSA xxxxx
191.25.................................  PHMSA xxxxx
191.27.................................  PHMSA xxxxx
------------------------------------------------------------------------

    10. Section 191.22 is added to read as follows:


Sec.  191.22  National Registry of Pipeline and LNG Operators.

    (a) OPID Request. Each operator of a gas pipeline, gas pipeline 
facility, LNG plant or LNG facility must obtain from PHMSA an Operator 
Identification Number (OPID). An OPID is assigned to an operator for 
the pipeline or pipeline system for which the operator has primary 
responsibility. To obtain an OPID or a change to an OPID, an operator 
must submit a complete and accurate OPID Questionnaire [Insert form 
number]. The OPID Questionnaire must be transmitted electronically to 
PHMSA through the National Registry of Pipeline and LNG Operators at 
http://opsweb.phmsa.dot.gov. This requirement applies to all new and 
existing operators, including operators who have already been assigned 
one or more OPID.
    (b) Changes. Each operator of a gas pipeline, gas pipeline 
facility, LNG plant or LNG facility must notify PHMSA electronically 
through the National Registry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov 60 days prior to any of the following events:
    (1) A change in the name of the operator;
    (2) A change in the operating entity responsible for an existing 
pipeline, pipeline segment, or pipeline facility, or LNG facility;
    (3) The acquisition or divestiture of 50 or more miles of pipeline 
or pipeline system regulated by PHMSA;
    (4) Any rehabilitation, replacement, modification, upgrade, uprate, 
or update costing $5 million or more;
    (5) Construction of 10 or more miles of a new gas transmission 
pipeline or any project involving a pipeline or pipeline facility 
costing $5 million or more; or
    (6) The acquisition or divestiture of an existing LNG plant or LNG 
facility or construction of a new LNG plant or LNG facility.
    (c) Reporting. An operator must use the OPID issued by PHMSA for 
all reporting requirements covered under this subchapter and for 
submissions to the National Pipeline Mapping System.
    (d) Undue burden. If electronic reporting imposes an undue burden 
and hardship, an operator must submit a written request for an 
alternative reporting method to the Information Resources Manager, 
Office of Pipeline Safety, Pipeline and Hazardous Materials Safety 
Administration, PHP-10, 1200 New Jersey Avenue, SE., Washington DC 
20590. The request

[[Page 31685]]

must describe the undue burden and hardship.
    11. Section 191.25 is revised to read as follows:


Sec.  191.25  Filing safety-related condition reports.

    (a) General. Each operator must file a report of a safety-related 
condition under Sec.  191.23(a) on DOT Form PHMSA [INSERT FORM NUMBER]. 
The report must be filed (received by the Administrator) within five 
working days (not including Saturdays, Sunday, or Federal Holidays) 
after the day a representative of the operator first determines or 
discovers that the condition exists, but not later than 10 working days 
after the day a representative of the operator determines or discovers 
the condition.
    (b) Separate conditions. An operator may describe separate 
conditions in a single report if the conditions are closely related.
    12. Section 191.27 is revised to read as follows:


Sec.  191.27  Filing offshore pipeline condition reports.

    Each operator must, within 60 days after completion of the 
inspection of all its underwater pipelines subject to Sec.  192.612(a), 
file an Offshore Pipeline Condition Report on DOT Form PHMSA [INSERT 
FORM NUMBER].

PART 192--TRANSPORTATION OF NATURAL AND OTHER GAS BY PIPELINE: 
MINIMUM FEDERAL SAFETY STANDARDS

    13. The authority citation for part 192 continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60110, 
60113, and 60118; and 49 CFR 1.53.

    14. In Sec.  192.945, paragraph (a) is revised to read as follows:


Sec.  192.945  What methods must an operator use to measure program 
effectiveness?

    (a) General. An operator must include in its integrity management 
program methods to measure whether the program is effective in 
assessing and evaluating the integrity of each covered pipeline segment 
and in protecting the high consequence areas. These measures must 
include the four overall performance measures specified in ASME/ANSI 
B31.8S (incorporated by reference, see Sec.  192.7 of this subchapter), 
section 9.4, and the specific measures for each identified threat 
specified in ASME/ANSI B31.8S, Appendix A. An operator must submit the 
four overall performance measures on the annual report required by 
Sec.  191.17 of this subchapter.
* * * * *
    15. Section 192.951 is revised to read as follows:.


Sec.  192.951  Where does an operator file a report?

    An operator must file any report required by this subpart 
electronically to the Pipeline and Hazardous Materials Safety 
Administration at http://opsweb.phmsa.dot.gov. If electronic reporting 
imposes an undue burden and hardship, an operator must submit a written 
request for an alternative reporting method to the Information 
Resources Manager, Office of Pipeline Safety, Pipeline and Hazardous 
Materials Safety Administration, PHP-10, 1200 New Jersey Avenue, SE., 
Washington, DC 20590. The request must describe the undue burden and 
hardship.

PART 193--LIQUIFIED NATURAL GAS FACILITIES: FEDERAL SAFETY 
STANDARDS

    16. The authority citation for part 193 continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60103, 60104, 60108, 60109, 
60110, 60113, 60118, and 49 CFR 1.53.

    17. Section 193.2011 is revised to read as follows:


Sec.  193.2011  Reporting.

    Incidents, safety-related conditions, and annual pipeline summary 
data for LNG plants or facilities must be reported in accordance with 
the requirements of part 191 of this subchapter.

PART 195--TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE

    18. The authority citation for part 195 continues to read as 
follows:

    Authority: 49 U.S.C. 5103, 60102, 60104, 60108, 60109, 60118, 
and 49 CFR 1.53.

    19. Section 195.49 is revised to read as follows:


Sec.  195.49  Annual report.

    Each operator must annually complete and submit DOT Form PHMSA F 
7000-1.1 for each type of hazardous liquid pipeline facility operated 
at the end of the previous year. The hazardous liquid operator annual 
report must be filed by June 15 each year. Each operator must submit a 
separate report for each State a pipeline traverses. A separate report 
is required for crude oil, HVL (including anhydrous ammonia), petroleum 
products, and carbon dioxide pipelines.
    20. Section 195.52 is revised to read as follows:


Sec.  195.52  Telephonic notice of certain accidents.

    (a) Notice requirements. At the earliest practicable moment 
following discovery of a release of the hazardous liquid or carbon 
dioxide transported resulting in an event described in Sec.  195.50, 
the operator of the system must give notice, in accordance with 
paragraph (b) of this section, of any failure that:
    (1) Caused a death or a personal injury requiring hospitalization;
    (2) Resulted in either an explosion or fire not intentionally set 
by the operator;
    (3) Caused estimated property damage, including cost of cleanup and 
recovery, value of lost product, and damage to the property of the 
operator or others, or both, exceeding $50,000;
    (4) Resulted in pollution of any stream, river, lake, reservoir, or 
other similar body of water that violated applicable water quality 
standards, caused a discoloration of the surface of the water or 
adjoining shoreline, or deposited a sludge or emulsion beneath the 
surface of the water or upon adjoining shorelines; or
    (5) In the judgment of the operator was significant even though it 
did not meet the criteria of any other paragraph of this section.
    (b) Information required. Reports made under paragraph (a) of this 
section are made by telephone to 800-424-8802 (in Washington, DC 267-
2675) and must include the following information:
    (1) Name, address and identification number of the operator.
    (2) Name and telephone number of the reporter.
    (3) The location of the failure.
    (4) The time of the failure.
    (5) The fatalities and personal injuries, if any.
    (6) Initial estimate of amount of product released in accordance 
with paragraph (c) of this section.
    (7) All other significant facts known by the operator that are 
relevant to the cause of the failure or extent of the damages.
    (c) Calculation. A pipeline operator must have a written procedure 
to calculate and provide a reasonable initial estimate of the amount of 
released product.
    (d) New information. An operator must provide an additional 
telephonic report to the National Response Center if significant new 
information becomes available during the emergency response phase of a 
reported event.
    21. In Sec.  195.54, paragraph (a) is revised to read as follows:

[[Page 31686]]

Sec.  195.54  Accident reports.

    (a) Each operator that experiences an accident that is required to 
be reported under Sec.  195.50 must, as soon as practicable, but not 
later than 30 days after discovery of the accident file an accident 
report on DOT Form 7000-1.
* * * * *
    22. Section 195.56 is revised to read as follows:


Sec.  195.56  Filing safety-related condition reports.

    (a) General. Each operator must file a report of a safety-related 
condition under Sec.  195.55(a) on DOT Form PHMSA [INSERT FORM NUMBER]. 
The report must be filed (received by the Administrator) within five 
working days (not including Saturdays, Sunday, or Federal Holidays) 
after the day a representative of the operator first determines or 
discovers that the condition exists, but not later than 10 working days 
after the day a representative of the operator determines or discovers 
the condition.
    (b) Separate conditions. An operator may describe separate 
conditions in a single report if the conditions are closely related.
    23. Section 195.57 is revised to read as follows:


Sec.  195.57  Filing offshore pipeline condition reports.

    Each operator must, within 60 days after completion of the 
inspection of all its underwater pipelines subject to Sec.  195.413(a), 
file an Offshore Pipeline Condition Report on DOT Form PHMSA [INSERT 
FORM NUMBER].
    24. Section 195.58 is revised to read as follows:


Sec.  195.58  Report submission requirements.

    (a) General. An operator must submit each report required by this 
part electronically to PHMSA at http://opsweb.phmsa.dot.gov. If 
electronic reporting imposes an undue burden and hardship, the operator 
must submit a written request for an alternative reporting method to 
the Information Resources Manager, Office of Pipeline Safety, Pipeline 
and Hazardous Materials Safety Administration, PHP-10, 1200 New Jersey 
Avenue, SE., Washington, DC 20590. The request must describe the undue 
burden and hardship and be sent at least 60 days prior to the due date 
of the report.
    (b) Safety related conditions. An operator must submit concurrently 
to the applicable State agency a safety-related condition report 
required by Sec.  191.23 of this subchapter for an intrastate pipeline 
or when the State agency acts as an agent of the Secretary with respect 
to interstate pipelines.


Sec.  195.62  [Removed]

    25. Section 195.62 is removed.
    26. Section 195.63 is revised to read as follows:


Sec.  195.63  OMB control number assigned to information collection.

    The control numbers assigned by the Office of Management and Budget 
to the hazardous liquid pipeline information collection pursuant to the 
Paperwork Reduction Act are 2137-0047, 2137-0601, 2137-0604, 2137-0605, 
2137-0618, and 2137-0622.
    27. Section 195.64 is added to read as follows:


Sec.  195.64  National Registry of Pipeline and LNG Operators.

    (a) OPID Request. Each operator must obtain from PHMSA an Operator 
Identification Number (OPID). An OPID is assigned to an operator for 
the pipeline or pipeline system for which the operator has primary 
responsibility. To obtain an OPID or a change to an OPID, an operator 
must submit a complete and accurate OPID Questionnaire (Insert form 
number). The OPID Questionnaire must be transmitted electronically to 
PHMSA through the National Registry of Pipeline and LNG Operators at 
http://opsweb.phmsa.dot.gov. This requirement applies to all operators, 
including operators who have already been assigned an OPID.
    (b) Changes. Each operator must notify PHMSA electronically through 
the National Registry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov, 60 days prior to any of the following events:
    (1) A change in the name of the operator;
    (2) A change in the operating entity responsible for operating an 
existing pipeline, pipeline segment, or pipeline facility;
    (3) The acquisition or divestiture of 50 or more miles of pipeline 
or pipeline system regulated by PHMSA;
    (4) Pipeline rehabilitation, pipe replacement, or pipeline system 
changes to upgrade/uprate a pipeline or pipeline facility costing $5 
million or more;
    (5) Construction of 10 or more miles of a new hazardous liquid 
pipeline or any project involving a pipeline or pipeline facility 
costing $5 million or more; or
    (6) The acquisition or divestiture of an existing pipeline facility 
or construction of a new pipeline facility.
    (c) Reporting. An operator must use the OPID issued by PHMSA for 
all reporting requirements covered under this subchapter and for 
submissions to the National Pipeline Mapping System.
    (d) Undue burden. If electronic reporting imposes an undue burden 
and hardship, an operator must submit written request for an 
alternative reporting method mitted to the Information Resources 
Manager, Office of Pipeline Safety, Pipeline and Hazardous Materials 
Safety Administration, PHP-10, 1200 New Jersey Avenue, SE. Washington 
DC 20590. The request must describe the undue burden and hardship.

    Issued in Washington, DC, on June 24, 2009.
Jeffrey D. Wiese,
Associate Administrator for Pipeline Safety.
[FR Doc. E9-15532 Filed 7-1-09; 8:45 am]
BILLING CODE 4910-60-P


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