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New Mexico Damage Prevention Summit Albuquerque, New Mexico October 23, 2019

PHMSA 2019 Regulatory Update. New Mexico Damage Prevention Summit Albuquerque, New Mexico October 23, 2019. 1. Who is PHMSA - DOT/PHMSA?. PHMSA Mission. To ensure the operation of the Nation’s pipeline transportation system is: Safe Reliable Environmentally sound

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New Mexico Damage Prevention Summit Albuquerque, New Mexico October 23, 2019

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  1. PHMSA 2019 Regulatory Update New Mexico Damage Prevention Summit Albuquerque, New Mexico October 23, 2019 1

  2. Who is PHMSA - DOT/PHMSA?

  3. PHMSA Mission • To ensure the operation of the Nation’s pipeline transportation system is: • Safe • Reliable • Environmentally sound To protect people and the environment by advancing the safe transportation of energy and other hazardous materials that are essential to our daily lives

  4. PHMSA Regulated Pipeline Facilities - OPS and States

  5. Secretary’s Goals • Safety • Infrastructure (both building and refurbishing) • Innovation (technology and automation) • Accountability OPS’ Priorities • Continuous Pipeline Safety • Safety Accountability • People • Effective Use of Data and Information 5

  6. PHMSA and State Programs • We work together everyday to help achieve our goal of ZERO pipeline incidents. • Training • Inspections • Rulemaking • Interpretations • Task Teams and Committees 6

  7. Current Concerns • Construction • Public Awareness and Engagement • Human Factors • Security (cyber and physical) • Compliance Mindset 7

  8. Our Challenges • Growth in Pipeline Infrastructure • Aging Pipeline Facilities • Pending Reauthorization • NTSB Recommendations • GAO/OIG Recommendations • Staffing 8

  9. Meeting the Challenges • Integrity • An Absolute Sense of Responsibility • Diligence • Urgency • Always doing the RIGHT thing! Safety Culture 9

  10. Serious Incidents Increased by 67% from 2017 to 2018 Data accurate as of February. 2019 CY 201890% Gas Distribution 7.5% Gas Transmission2.5% Hazardous Liquid 0% Liquefied Natural Gas (LNG), Gas Gathering, or Underground Natural Gas Storage

  11. 2018 Serious Incidents by Cause CY 2018 Leading Causes • Other outside force damage (vehicular damage) • Excavation damage • All other causes (under investigation)

  12. Drivers of the Regulatory Agenda Congress NTSB GAO OIG EOs • Pipeline Safety Act of 2011 • Section 4 – Valves • Section 5 – Expanding IM Principles • Section 23 – MAOP • PIPES ACT of 2016 • Emergency Orders • LNG – small scale • Changes in HL HCA definition (USAs) • NTSB/GAO/OIG • Executive Orders on Regulatory Reform 12

  13. OPS Regulatory Review Process • SME Teams established to review • Existing regulations • Petitions for rulemaking • Active rulemakings • Special Permits • Stakeholder input – public comments • Executive Leadership Approval • Economic Analysis Developed • Rulemaking Initiated, if appropriate

  14. Current Rulemakings in Process Gas Pipeline Regulatory Reform (2137-AF36) Liquid Pipeline Regulatory Reform (2137-AF37) (NPRM stage) • These rulemaking would propose amendments to the Pipeline Safety Regulations, specifically aimed at easing regulatory burdens on the construction and operation of hazardous liquid, gas transmission and gas distribution pipeline systems. • These amendments will include regulatory relief actions identified by internal agency review, existing petitions for rulemaking, and public comments on the Department of Transportation regulatory reform and infrastructure notices. • This rulemaking will propose a number of miscellaneous deregulatory actions applicable to hazardous liquid, gas transmission and gas distribution pipelines. • This rulemaking will implement the policy in Executive Order 13,777 to review existing regulations.

  15. Current Rulemakings in Process Plastic Pipe (Final rule ISSUED) Bonus Slides at end of presentation for posting • Final Rule published 11/20/2018 • The Effective Date for the rule and all its provisions was January 22, 2019 except for some marking requirements (December 31, 2019) • Additional relief was provided for implementation based on AGA Petition for Reconsideration received March 1, 2019 • Address the following plastic pipe topics: • Authorized use of PA12 • AGA petition to raise D.F. from 0.32 to 0.40 for PE pipe • Tracking and traceability – Not adopted • Miscellaneous revisions for PE and PA11 pipelines • Additional provisions for fittings used on plastic pipe

  16. Current Rulemakings in Process Safety of On-Shore Hazardous Liquid Pipelines (Final Rule ISSUED) • Additional reporting for gravity and exempt rural gathering pipelines • Post abnormal weather event assessments • Pipeline integrity assessment for Non-HCA pipelines • Require leak detection systems beyond HCAs to all regulated, non-gathering hazardous liquid pipelines • Require HCA pipelines capability to pass internal inspection devices • Data Integration requirements • The effective date of this final rule is 9 months after date of publication in the Federal Register.

  17. Current Rulemakings in Process Emergency Order (Final Rule ISSUED) • On October 14, 2016, PHMSA published an interim final rule (IFR) issuing temporary emergency order procedures under the PIPES Act of 2016 and requesting public comment. This final rule adopts, with modifications, that IFR implementing the emergency order authority conferred on the Secretary of Transportation by the PIPES Act. • These regulations establish procedures for the issuance of emergency orders to address an unsafe condition or practice, or a combination of unsafe conditions or practices, that constitute or cause an imminent hazard to public health and safety or the environment. • The regulations describe the duration and scope of such orders and provide a mechanism by which pipeline owners and operators subject to, and aggrieved by, emergency orders can seek administrative or judicial review. • This final rule is effective 60 days after date of publication in the Federal Register.

  18. Current Rulemakings in Process Liquified Natural Gas (NPRM stage) • Revise 49 CFR Part 193 to incorporate current industry developed standards (via NFPA 59A-2019) • Address LNG Export Facilities • Address Small Scale LNG Facilities • Incorporate other provisions as necessary • Presidential Executive Order • Final Rule by May of 2020 - 18 -

  19. Current Rulemakings in Process Underground Storage Facilities for Natural Gas (Final rule stage) • Interim Final Rule (IFR) Published (12/19/2016) • IFR requires operators of underground storage facilities for natural gas to comply with minimum safety standards, including compliance with: • API RP 1171, Functional Integrity of Natural Gas Storage in Depleted Hydrocarbon Reservoirs and Aquifer Reservoirs • API RP 1170, Design and Operation of Solution-mined Salt Caverns Used for Natural Gas Storage • Annual and Incident reporting requirements

  20. Current Rulemakings in Process Underground Storage Facilities for Natural Gas (Final rule stage) • PHMSA adopted the non-mandatory provisions of the RPs in a manner that would make them all mandatory, except that operators would be permitted to deviate from the RPs if they provide justification. • Notice Published (6/20/17) • Stay of enforcement for non-mandatory provisions • Delay of UGS Annual Report (March 2018) • Comment period re-opened until 11/20/17

  21. Current Rulemakings in Process Rupture Detection and Valve Rule (NPRM stage) • Rulemaking is in response to Section 4 and 8 of the 2011 Act, NTSB Recommendations and studies perform by both PHMSA and GAO. • Addresses the installation of ASV/RCV on newly constructed or entirely replaced natural gas and hazardous liquid transmission pipelines with the objective of improving overall incident response for new and replaced pipelines. • Rule would establish and define rupture detection and response time metrics. • NPRM at OMB for review

  22. Current Rulemakings in Process Standards Update (NPRM stage) • Major Topics: • Addresses the set of IBR standards throughout PHMSA’s part 192, and Part 195 code with updated revisions of standards from all standard organization bodies. • This NPRM would impact approx. many of the 60+ standards that we currently IBR. • Miscellaneous amendments to PSR • Stakeholder petitions • Agency initiative

  23. Current Rulemakings in ProcessClass Location Requirements(NPRM stage) • Examining options for existing pipe when class locations change due to population increases near pipeline and MAOP is not commensurate w/new class location. • ANPRM 7/31/18 • Current requirements when class locations change: • Reduce operating pressure • Confirm new MAOP w/pressure test • Replace pipe w/thicker wall pipe • Note: Operators may also request special permits to operate segments at previous MAOP while performing certain measures to mitigate risk and ensure safety.

  24. Current Rulemakings in Process Safety of Gas Transmission and Gathering Lines (Final Rule stage) • GPAC has completed all of its work. • Rule has been broken into three final rules • 1) MAOP Reconfirmation, Material verification, MCA assessments, records, Seismicity, MAOP Exceedance reporting, 6-month grace period for assessments • Final Rule ISSUED • 2) Repair criteria (HCA and Non-HCA); Extreme weather; MOC; Corrosion control; IM Clarifications, Strengthening Assessment requirements • 3) Gas Gathering: Data, Definitions, regulating large diameter-high pressure lines - 24 -

  25. Safety of Gas Transmission Lines RIN-1 Final Rule issued This final rule addresses congressional mandates, NTSB recommendations, and responds to public input. The effective date of this final rule will be 9 months after date of publication in the Federal Register. The amendments address IM and other requirements focusing on the actions an operator must take: • New Definitions for Moderate Consequence Area (MCA) and Engineering Critical Assessment (ECA) • Periodic assessment of pipelines in populated areas not designated as “high consequence areas,” • Methods for material verification • Reconfirm the MAOP of previously untested natural gas transmission pipelines and pipelines lacking certain material or operational records

  26. Safety of Gas Transmission Lines (continued) • Engineering Critical Assessment for MAOP Reconfirmation • Analysis of Predicted Failure Pressure • Reporting of exceedances of MAOP, • Consideration of seismicity as a risk factor in IMP, • Safety features on in-line inspection launchers and receivers, • 6-month grace period for 7-calendar-year IM integrity reassessment intervals, and • Spike Testing • Recordkeeping provisions, and • IBR of certain publications listed in the rule

  27. Status of Rulemakings • Where can I go to check status? • US DOT provides a monthly status report on Significant rulemakings and link to semi-annual regulatory agenda for all rulemakings (including nonsignificant) at https://www.transportation.gov/regulations/report-on-significant-rulemakings

  28. Advisory Bulletin 2019-01 Potential for Damage to Pipeline Facilities Caused by Flooding, River Scour, and River Channel Migration • PHMSA issued this advisory bulletin to remind all owners and operators of gas and hazardous liquid pipelines of the potential for damage to pipeline facilities caused by severe flooding and actions that operators should consider taking to ensure the integrity of pipelines in the event of flooding, river scour, and river channel migration. - 28 -

  29. Advisory Bulletin 2019-02 Potential for Damage to Pipeline Facilities Caused by Earth Movement and Other Geological Hazards • PHMSA issued this advisory bulletin to remind owners and operators of gas and hazardous liquid pipelines of the potential for damage to pipeline facilities caused by earth movement from both landslides and subsidence in variable, steep, and rugged terrain and for varied geological conditions. • These conditions can pose a threat to the integrity of pipeline facilities if those threats are not identified and mitigated. - 29 -

  30. Pipeline Safety Re-Authorization • Topics being discussed include: • Leak Detection and Mitigation • Forced consideration of certain low frequency threats which might be identified a “zero probability” or not be included in risk ranking and risk mitigation actions because of low risk • Reduce Risks resulting from the presence of cast iron pipes and mains in the distribution system • Specifically addressing the threat of over-pressurization on low pressure distribution systems • Implementing Measures to reduce identified Risks • Capturing Methane during Repairs and other activities

  31. Ongoing NTSB Investigations of Incidents in Gas Distribution Systems Minneapolis, Minnesota – August 2, 2017 - Minnehaha Academy https://www.ntsb.gov/investigations/AccidentReports/Pages/DCA17MP007-prelim-report.aspx Dallas, Texas – February 23, 2018 - ATMOS https://www.ntsb.gov/investigations/AccidentReports/Pages/PLD18FR002-preliminary.aspx Millersville, Pennsylvania – July 2, 2017 -PermaLock Mechanical Tapping Tees Recommendations issued June 18, 2018 (NTSB 2018-18-01 & -02 - moving towards closure) https://www.ntsb.gov/investigations/AccidentReports/Pages/pipeline.aspx Response to Event in Lawrence, MA – September 13, 2018 - https://www.ntsb.gov/investigations/AccidentReports/Pages/PSR1802.aspx San Francisco, CA – 3rd party fiber optic conduit installation contractor damaged a PG&E 2-inch natural gas main at the connection to a 4-inch main, February 6, 2019 Durham, North Carolina Fiber Optic Ditch Witch incident

  32. Addressing Risks to Improve Safety §192.605(c)(4) Abnormal operation. Periodically reviewing the response of operator personnel to determine the effectiveness of the procedures controlling abnormal operation and taking corrective action where deficiencies are found. 192.613 Continuing surveillance (a) Each operator shall have a procedure for continuing surveillance of its facilities to determine and take appropriate action concerning changes in class location, failures, leakage history, corrosion, substantial changes in cathodic protection requirements, and other unusual operating and maintenance conditions. … 192.617 Investigation of failures Each operator shall establish procedures for analyzing accidents and failures, including the selection of samples of the failed facility or equipment for laboratory examination, where appropriate, for the purpose of determining the causes of the failure and minimizing the possibility of a recurrence. TIMP - Part 192 SubParts O - Identify threats, integrity assessments & implement measures to reduce risks. DIMP - Part 192 SubParts P - Identify risks & implement measures to address risks.

  33. DIMP Enforcement • Using Inspection Data/Results to manage the DIMP program • Moved to “Inspection Assistant” in 2017 for results and analyses

  34. DIMP Enforcement Top 10 GDIM questions with % UNSAT result

  35. DIMP Enforcement Top 10 GDIM questions with % CONCERN result

  36. And then there are Farm Taps The Exercise of Enforcement Discretion with respect to portions of its regulations that pertain to farm taps was issued March 26, 2019 https://www.regulations.gov/document?D=PHMSA-2018-0086-0001 PHMSA will not take enforcement action against operators who forego the new OM&I requirements established in March 2017 and instead mitigate any future risk associated with farm taps through compliance with the existing Distribution Integrity Management Program (DIMP) regulations. Provides regulatory flexibility to operators while at the same time maintaining an equivalent level of safety.

  37. Farm Taps Issues Should the stub to the farm tap retain the classification as the source pipeline? When does a farm tap start being a service line? Can we define what a farm tap is exactly with so many differing scenarios existing? What requirements apply to farm taps? Off of non-regulated source pipelines? Operator-owned seems straight forward? Customer-owned – cross a public ROW?

  38. Farm Taps are Distribution Service Lines Interpretations provide the basis for determination that farm taps are distribution service lines which has been documented since the inception of pipeline safety laws and regulations PHMSA’s interpretations to Northern Natural Gas Company (Interpretation #PI-11-0008 on April 19, 2011) and ATMOS Energy (Interpretation #PI-11-0016 on September 12, 2012) detail the consideration of farm taps as distribution service pipelines. https://www.phmsa.dot.gov/regulations/title49/b/2/1

  39. PHMSA Activities in 2018 Following retraction of Farm Tap FAQs, PHMSA sought out Stakeholder input IPAA provided input from Production and Gathering Operators on scenarios faced in many States and issues with implementation of the Rule AGA, INGAA, APGA AGA proposed option of DIMP or §192.740 tasks INGAA supports retaining use of §192.740 GPA Midstream Farmers Bureau Lobbyists, and others Farm Taps exist in many different scenarios and configurations

  40. Questions PHMSA Response Kentucky Letter and Response • Does 192.740 apply to farm taps off of non regulated source pipelines? • If 192.740 applies, is the operator or customer responsible for regulator maintenance? • Farm taps off of non-regulated source pipelines are jurisdictional distribution service pipelines • Typical customer-owned facilities are non- jurisdictional • Customer-owned regulator is not subject to 192.740 Involved Interpretation of §192.740

  41. Regulatory Reform Rulemaking Farm Taps are included in the Regulatory Reform Rulemaking docket and discussions. Comments on the notice of regulatory reform were similar to information gathered during stakeholder meetings. Farm taps and DIMP are in Gas Regulatory Reform Rulemaking

  42. Outstanding Issues When does the service line start on a farm tap? Considering defining the service line to start at the first upstream valve, meter, or regulator. The stub to the farm tap / service line would keep the classification of the source pipeline. What about excess Flow Valves and their placement? When does a farm tap end? According to 49 CFR 192.3, a service line ends at the connection to customer piping or outlet of meter, whichever is further downstream. What requirements do or should apply to farm taps connected to production and rural gathering lines? What are the requirements for operator vs customer owned farm taps? (KY interpretation)

  43. Path Forward FAQ development Phase 2 work concluded and Draft FAQs are under internal review at PHMSA https://primis.phmsa.dot.gov/dimp/farmtap.htm Publish Regulatory Reform NPRM Future discussions and rulemaking to come to consensus on farm tap definitions, regulations, and discuss implementation strategies

  44. . Thank you for your Participation in Pipeline Safety

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