DAR File No. 39934

Public Service Commission, Administration

Rule R746-409

Pipeline Safety

Notice of Proposed Rule

(Amendment)

DAR File No.: 39934
Filed: 11/10/2015 11:07:40 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this proposed amendment is to: 1) update the date of the referenced U.S. Department of Transportation pipeline safety regulations to September 1, 2015; 2) identify that penalties for violations of Pipeline Safety regulations fall under the jurisdiction of Title 54, Chapter 13, Part 8; 3) delete unnecessary and duplicative requirements; and 4) consolidate, update, and clarify reporting and operating requirements.

Summary of the rule or change:

Currently, Rule R746-409 adopts the federal pipeline safety regulations codified in 49 CFR Parts 190, 191, 192, 198, and 199, as amended October 1, 2010. The rule change updates the amendment date to September 1, 2015. Substantive changes between the October 1, 2010, and September 1, 2015, amendment dates include: requirements for operators to implement control room management procedures and distribution integrity management programs; and modifications to requirements pertaining to post-construction inspection, leak surveys, qualifying of plastic pipe joining and transportation of pipe. Currently, Rule R746-409 does not specify that penalties for violations of pipeline safety regulations fall under the jurisdiction of Title 54, Chapter 13, Part 8. The rule change corrects this omission. The rule change adds six definitions for clarity. The rule change formalizes current "State Reportable Incident" criteria and reporting requirements. The rule change clarifies access requirements for inspections occurring "during normal business hours" and "outside of normal business hours." The rule change clarifies and consolidates telephonic notification and written reporting requirements and introduces a toll-free telephone number and an email address for the Division of Public Utilities. The rule change consolidates the requirements for written plans pursuant to federal regulations.

State statutory or constitutional authorization for this rule:

• Section 54-13-2
• Section 54-13-4
• Section 54-13-8
• Section 54-13-3

This rule or change incorporates by reference the following material:

• Updates 49 CFR Part 198 , published by Government Printing Office, 09/01/2015
• Updates 49 CFR Part 192, published by Government Printing Office, 09/01/2015
• Updates 49 CFR Part 191, published by Government Printing Office, 09/01/2015
• Updates 49 CFR Part 190, published by Government Printing Office, 09/01/2015
• Updates 49 CFR Part 199 , published by Government Printing Office, 09/01/2015

Anticipated cost or savings to:

the state budget:

The proposed rule change should not result in any costs to the Division of Public Utilities because the Division mainly enforces pipeline safety rules and the rule change reflects current requirements.

local governments:

This rule applies to natural gas public utilities operated by local governments. Since local governments are already expected to operate pursuant to the federal regulations and state requirements incorporated or formalized in this rule change, no anticipated costs are expected. Negligible savings may occur due to streamlining of reporting requirements.

small businesses:

This rule applies to operators of natural gas master meter systems and pipeline facilities. Since small businesses are already expected to operate pursuant to the federal regulation and state requirements incorporated or formalized in this rule change, no anticipated costs are expected. Negligible savings may occur due to streamlining of reporting requirements.

persons other than small businesses, businesses, or local governmental entities:

Since persons are already expected to operate pursuant to the federal regulation and state requirements incorporated or formalized in this rule change, no anticipated costs are expected. Negligible savings may occur due to streamlining of reporting requirements.

Compliance costs for affected persons:

Compliance costs for affected persons will not be expected because this rule change follows practices and requirements already in place at the federal and state level.

Comments by the department head on the fiscal impact the rule may have on businesses:

The proposed rule change adopts and formalizes current operating practices and requirements and therefore the proposed rule change will not result in any additional costs. Negligible savings may occur due to streamlining of reporting requirements.

Thad LeVar, Chair

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Public Service Commission
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at [email protected]
• Melanie Reif at the above address, by phone at 801-530-6709, by FAX at 801-530-6796, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/31/2015

This rule may become effective on:

03/30/2016

Authorized by:

Melanie Reif, Administrative Law Judge

R746. Public Service Commission, Administration.

R746-409. Pipeline Safety.

R746-409-1. General Provisions.

A. Scope and Applicability -- [To enable the Commission]Pursuant to [carry out its duties regarding pipeline safety under]Title 54, Chapter 13, [Title 54, ]the following rules shall apply to persons [owning or operating an intrastate pipeline facility as defined in that chapter, or a segment of that chapter including, but not limited to, master meter systems, as well as persons ]engaged in the transportation of gas as defined in CFR Title 49 Parts 191 and 192.

B. Adoption of [Parts 190, 191, 192, 198, and 199] parts of CFR Title 49 -- The Commission [hereby] adopts[,] and incorporates by this reference[,] the following parts of CFR Title 49, [Parts]effective September 1, 2015:

1. Part 190 with the exclusion of Part 190.223[,] which is superseded by Title 54, Chapter 13, Part 8, Violation of chapter -- Penalty;

2. Part 191[,];

3. Part 192[,];

4. Part 198[,]; and [199, as amended, October 1, 2010.]

5. Part 199.

C. Persons [owning or operating an intrastate pipeline facility in Utah, or a segment thereof, as well as persons] engaged in the transportation of gas, including distribution of gas through a master-metered system, shall comply with the requirements of CFR Title 49, identified in Section R746-409-1.B, including all minimum safety standards [specified in those Parts of CFR Title 49].

 

R746-409-2. Definitions.

For purposes of these rules, the following terms shall bear the following meanings:

A. "Authorized Inspector" means a person employed or authorized by the Commission or the director of the Division.

[A]B. "CFR" means the Code of Federal Regulations;

[B]C. "Commission" means the Public Service Commission of Utah;

[C]D. "Division" means the Division of Public Utilities, Utah Department of Commerce;

[D]E. "Federally Reportable Incident" has the same meaning set forth in Part 191.3. Definitions, Incident.

F. "Operator" has the same meaning set forth in CFR Title 49, Part 191.3, Definitions, Operator.

G. "Part 190" means CFR Title 49, Part 190[entitled], Pipeline Safety [Program]Programs and Rulemaking Procedures.

[E]H. "Part 191" means CFR Title 49, Part 191[, entitled], Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports.

[F]I. "Part 192" means CFR Title 49, Part 192[entitled], Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards.

[G]J. "Part 198" means CFR Title 49, Part 198[entitled], Regulations for Grants to Aid State Pipeline Safety Program s.

[H]K. "Part 199" means CFR Title 49, [part]Part 199[entitled], Drug and Alcohol Testing.

L. "Pipeline Facility" has the same meaning set forth in Part 191.3 Definitions, Pipeline facility.

M. "State Reportable Incident" means an event that falls within the definition of a federally reportable incident or a safety-related condition as identified in CRF Title 49, Part 191.23, Reporting safety-related conditions, or meets one or more of the following:

1. Results in damage to any segment of:

a. steel main, twelve inches or greater in diameter, or

b. transmission pipeline;

2. Requires removal from service or repair of any segment of:

a. steel main, twelve inches or greater in diameter, or

b. transmission pipeline;

3. Results in property damage of $15,000 or more, including the cost of gas that is lost;

4. Results in the loss of gas service to ten or more customers;

5. Results in the known evacuation of any highly populated areas including commercial businesses, office buildings, eateries, schools, churches or public meeting places; or

6. Receives news media coverage of which the utility becomes aware.

N. "Transportation of Gas" has the same meaning set forth in CFR Title 49, Part 191.3, Definitions, Transportation of gas.

 

R746-409-3. Inspections.

A. [Authorized Inspector -- A person employed or]Access for inspection

1. During Normal Business Hours -- During normal business hours, an authorized [by the Commission or the director of the Division]inspector, upon [presenting] presentation of appropriate credentials, [is authorized to]may enter [upon, ]an operator's offices and pipeline facilities to inspect and examine[, during normal business hours,] the records and [properties of a person in possession or control of them]pipeline facilities, if the records and [properties]pipeline facilities are relevant to determining [the] compliance with applicable state and federal pipeline safety statutes, rules and regulations.

2. Outside of Normal Business Hours -- For incidents occurring outside of normal business hours, an authorized inspector, upon presentation of appropriate credentials, may enter an operator's pipeline facilities involved in or associated with an incident to inspect and examine the pipeline facilities, if inspection of the pipeline facility is relevant to determining compliance with applicable state and federal pipeline safety statutes, rules and regulations.

B. Reasons for Inspection -- Inspections are ordinarily conducted pursuant to one of the following:

1. [routine scheduling]Routine inspection, including but not limited to a compliance inspection;

2. [a]A complaint received from a member of the public;

3. [information]Information obtained from a previous inspection;

4. A pipeline [accident or ]incident; or

5. [when]When deemed appropriate by the Commission.

C. Testing -- To the extent necessary to carry out its responsibilities, the Commission may require testing of portions of intrastate pipeline facilities which have been involved in or affected by an [accident]incident.

D. Further Action -- When information obtained from an authorized inspector or from other appropriate sources indicates that further action is warranted, the Division shall issue a warning letter to an operator and, if necessary, initiate proceedings, including but not limited to seeking the issuance of Commission subpoenas to compel the production of records and the taking of testimony, hearings and related procedures, before the Commission.

 

[R746-409-4. Accidents or Incidents Reports and Annual Reports.

A. U.S. Department of Transportation -- An operator shall report to the U.S. Department of Transportation (800-424-8802) accidents or incidents involving its pipeline facilities operated within the state of Utah that cause personal injuries requiring in-patient hospitalization, fatality, or estimated damage to property totaling $50,000 or more.

B. Commission Notification -- The Commission shall be notified of the accidents or incidents as soon as possible, consistent with public welfare and safety. In those instances where a telephonic report to the United States Department of Transportation is required, a similar report of the accident or incident shall be made by telephone to:

Utah Division of Public Utilities

Lead Pipeline Safety Engineer

P.O. Box 146751

Salt Lake City, Utah 84145-6751

Telephone: 801-530-6673

801-530-6652

800-874-0904

C. Written Report -- An operator, except for master meter systems, shall furnish to the Commission, within 30 days after the occurrence of a reportable accident or incident, a written report of the accident or incident. The report may be made on the standard USDOT form designated Accident or Incident Report, or on a form acceptable to the Commission showing the same information. If certain information is not available, the incomplete report should be submitted indicating this unavailability. When the information becomes available, a supplemental report will be submitted.

D. Annual Report -- An operator, except for master meter systems, shall submit an annual report for that system on DOT form RSPA F 7100.1-1. This report must be submitted annually, not later than March 15, for the preceding calendar year. Operators who file annual reports to federal agencies in accordance with 49 CFR, part 191, are required to file copies of the reports with this Commission. Annual reports may be sent to the same address as noted in Subsection R746-409-4B.

 

R746-409-5. Operation and Maintenance Plans.

An operator of natural gas transportation facilities, except for master meter operators and liquid propane operators, shall file with the Commission for review by the Division of Public Utilities, a plan for the operation and maintenance of pipeline facilities owned or operated by it, and shall subsequently file changes in the plan. The plan shall cover gas transmission facilities, distribution facilities, and those gathering or production facilities located in non-rural areas. Master meter operators and liquid propane gas operators shall have at their distribution facility a plan for the operation and maintenance of their pipeline facilities. The essential requirements stated in Title 49 CFR Part 192.605, shall be covered by the plan. If the Commission, on recommendation of the Division, finds the plan inadequate for safe operation, the Commission shall, after notice and opportunity for a hearing, require revision of the plan.

 

R746-409-6. Emergency Plan.

An operator, except for master meter operators and liquid propane operators, shall file with the Commission, for review by the Division, a plan of written procedures to minimize the hazard resulting from a gas line emergency. The plan shall cover gas transmission facilities, distribution facilities and those gathering or production facilities located in non-rural areas. Master meter operators and liquid propane operators shall have at their distribution facilities a plan to minimize hazards resulting from an incident involving their gas facilities. The essential requirements stated in Title 49 CFR Part 192.615 shall be covered by the plan. If the Commission, on recommendation of the Division, finds the plan inadequate for safe operation, the Commission shall, after notice and opportunity for a hearing, require the plan to be revised.

 

R746-409-7. Cathodic Protection and Leak Surveys.

A. Cathodic Protection -- Operators of gas transportation facilities who do not have cathodic protection on their metallic underground piping system shall install cathodic protection, in accordance with 49 CFR, Subpart I, unless exempted as per Part 192.455(2)(b) on it within one year after establishment of the Commission rules, unless a time exemption is approved by the Commission.

B. Leak Survey -- A gas detector leak survey shall be conducted on master metered facilities, which were not cathodically protected prior to the Commission rules, at intervals not exceeding 15 months, but at least once each calendar year. The surveys shall be performed annually for at least five years after the date of the installation of cathodic protection.]

 

R746-409-4. Reporting and Notification Requirements.

A. An operator must comply with the notification and reporting

requirements contained in Part 191 and Section R746-409-4.

B. Telephonic notification to the Division.

1. For incidents requiring immediate notice under Part 191.5, an operator must also provide contemporaneous telephonic notification of the same information required under Part 191.5 to the Division at (844)-GAS-2525 or (844)-427-2525.

2. State Reportable Incidents. An operator must provide telephonic notice to the Division at (844)-GAS-2525 or (844)-427-2525 of all state reportable incidents, including the location and known details at the time of reporting, at the earliest practicable moment following discovery.

C. Written Reports required by Part 191. For all reports required under Part 191, including updates and supplemental reports, an operator shall contemporaneously furnish these reports to the Commission and the Division in accordance with Section R746-409-4.F.

D. Excavation Damage Quarterly Report. Each operator with more than 10,000 customers shall file a quarterly excavation damage report within 60 days after the end of the each quarter with the Commission and the Division in accordance with Section R746-409-4.F on a form approved by the Division.

E. Special Reports Relating to Safety Issues. An operator shall prepare and file special reports relating to safety issues as requested by the Commission or the Division in accordance with Section R746-409-4-F.

F. Filing of Written Reports:

1. All required written reports shall be filed with the Commission in accordance with Commission's filing requirements posted on the Commission's website at http://www.psc.utah.gov at the "Filing Req" tab under the Document column labeled "Pipeline Safety."

2. All required written reports shall be filed electronically with the Division at the following e-mail address: [email protected].

 

R746-409-5. Written Plans.

A. An operator must develop and implement all plans required in Parts 192 and 199, including operations and maintenance plans, emergency response plans, public awareness plans, operator qualifications plans, anti-drug and alcohol misuse plans, and integrity management plans (both transmission and distribution). These plans must be made available to the Commission or the Division upon request.

 

R746-409-[8]6 . Remedies.

A. Rules of Practice and Procedure -- The Commission's Rules of Practice and Procedure, R746-100, shall govern and control proceedings before the Commission regarding pipeline safety, with the exception of the additional remedies and procedures specified herein.

B. Hazardous Facility Order -- If the Commission finds, after notice and a hearing, that a particular intrastate pipeline facility is hazardous to life or property, it may issue a Hazardous Facility Order requiring the owner or operator of the intrastate pipeline facility to take corrective action. Civil penalties set forth in Section 54-13-[6]8 may also be imposed. Corrective action may include suspended or restricted use of the facility, physical inspection, testing, repair , replacement, or other action as may be appropriate.

C. Waiver of Notice and Hearing -- The Commission may waive the requirement for notice and hearing in Subsection (B) above before issuing an order pursuant to this section when it or the Division determines that the failure to do so would result in the likelihood of serious harm to life or property. However, the Commission shall include in the order an opportunity for hearing as soon as practicable after issuance of the order.

D. Hazardous Conditions -- The Commission may find an intrastate pipeline facility to be hazardous under paragraph 2 of this section if:

1. [u]Under the facts and circumstances the Commission determines the particular facility is hazardous to life or property; or

2. [t]The intrastate pipeline facility, or a component thereof, has been constructed or operated with equipment, material, or technique which the Commission determines is hazardous to life or property, unless the operator involved demonstrates to the satisfaction of the Commission that, under the particular facts and circumstances involved, such equipment, material, or technique is not hazardous to life or property.

E. Considerations -- In making a determination under paragraph (D)(2) of this section, the Commission may consider, if relevant:

1. [t]The characteristics of the pipe and other equipment used in the intrastate pipeline facility involved, including its age, manufacturer, physical properties, including its resistance to corrosion and deterioration, and the method of its manufacture, construction, or assembly;

2. [t]The nature of the materials transported by the facility, including their corrosive and deteriorative qualities, the sequence in which the materials are transported, and the pressure required for the transportation;

3. [t]The aspects of the areas in which the intrastate pipeline facility is located, in particular the climatic and geologic conditions, including soil characteristics, associated with the areas, and the population density and population and growth patterns of such areas;

4. [a]A recommendation of the National Transportation Safety Board issued in connection with an investigation conducted by the board;

5. [o]Other factors as the Commission may consider appropriate.

F. Contents of Hazardous Facility Order -- A Hazardous Facility Order issued by the Commission shall contain the following information:

1. [a]A finding that the pipeline facility is hazardous to life or property;

2. [t]The relevant facts which form the basis for the finding;

3. [t]The legal basis for the order;

4. [t]The nature and description of particular corrective action required of the respondent;

5. [t]The date by which the required action must be taken or completed and, where appropriate, the duration of the order.

G. No Longer Hazardous -- The Commission shall rescind or suspend a Hazardous Facility Order whenever it determines that the facility is no longer hazardous to life or property.

 

KEY: rules and procedures, safety, pipelines

Date of Enactment or Last Substantive Amendment: [November 7, 2011]2016

Notice of Continuation: October 6, 2011

Authorizing, and Implemented or Interpreted Law: 54-13-3; 54-13-5; 54-13-6