Federal Regulatory

Update

David JohnsonNovember 12, 2015

A lot in the works, now moving

7/1/2012

12/30/2012

7/1/2013

12/31/2013

7/2/2014

1/1/2015

7/2/2015

1/1/2016

7/2/2016

1/1/2017

7/1/2012 12/30/2012 7/1/2013 12/31/2013 7/2/2014 1/1/2015 7/2/2015 1/1/2016 7/2/2016 1/1/2017

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NPR

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Date of Report

PHMSA Significant Rulemaking Reports

Excav Dam

Misc Amdmts

Liq PLS

EFV

Gas IM

Valves

Unity Line

OQ, Cost

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Rulemakings• Standards Update FR 1-5-2015

• Miscellaneous amendments FR 3-11-2015

• Plastic pipe NPRM 5-21-2015

• OQ, cost recovery, notifications NPRM 7-10-2015

• Excess flow valves NPRM 7-15-2015

• State damage prevention enforcement FR 7-23-2015

• Safety of hazardous liquid pipelines NPRM 10-13-2015

• Gas transmission mega-rule (NPRM 11-12-2015)

• Valve and rupture detection rule (NPRM 3-16-2016)

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And not rules, yet• Class location requirements• GIS / NPMS information collection• Safety management systems• Flow reversals, product conversions• Midstream jurisdiction• Risk modeling• Hazardous liquid IVP• Other advisories

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Standards Update (FR)

• Effective March 6, 2015• Update IBR standards in 192, 193, 195, 198, 199• Addresses 22 of 60+ IBR standards• Must be available for free to the public

o At PHMSA or NARA

• Several API, ASME, ASTM, GTI, MSS, NACE, NFPA, PRCI, PPI updated standards IBR, in whole or part

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Miscellaneous Amendments (FR)

• Effective Oct. 1, 2015• Rail shipment of pipe must be per API 5L1• 1.5 x MAOP test for all ASME vessels

o Stay of enforcement and under further review

• Welder & welding operator definition and requalification

• Individual cannot inspect own worko Delayed enforcement of 192.305, but not 195.204

• Lateral definition impacting odorization requirements was dropped – to be considered later

• ECDA requirements

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Plastic Pipe (NPRM)

• Tracking and traceability • Design factor for PE pipe • Expanded use of PA-11 and use of PA-12 • Installation and repairs • Additional provisions for fittings used on plastic pipe• Test requirements

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OQ, Cost Recovery, Notifications (NPRM)

• Expansion of OQ to construction• Big change in covered task definition• Renewal process for special permits• Cost recovery for design reviews / construction

inspections• Protection of information – or not• Definition and use of “confirmed discovery”• Immediate (1-hour) notification of incidents +

follow-up within 48 hours• Mandatory ILI crack detection tools• Mandatory >100% spike test for significant SCC

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Excess Flow Valves (NPRM)

• Performance standards for EFVs• EFVs on all new and replaced gas service lines• Single family residence service lines• Branched service lines to SFRs• Multi-family residences• Single, small commercial customers• Some exceptions• Notification to customers

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State Damage Prevention Enforcement (FR)

• Effective Jan. 1, 2016• New Part 196 – Protection of Underground Pipelines

from Excavation Activity• Minimum requirements for excavators and

enforcement process• New Subpart D in Part 198 – State Damage

Prevention Enforcement Programs• Effectiveness evaluations of state programs• Allows PHMSA to enforce state laws if states

ineffective

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Safety of Hazardous Liquid Pipelines (NPRM)

• Incident and SRC reporting for gravity lines and all gathering lines

• Inspection after extreme events• ILI non-HCA segments every 10 years• Modify repair criteria and timing• Require leak detection systems on all HL pipelines• Increase use of ILI (the preferred method)• Integration of information• IM plan before operation, annual HCA verification

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Gas Transmission Mega-Rule (NPRM)

• Expanded HCA definition – PIR, MCA• Additional IM requirements – in and out of

HCA/MCA• Anomaly response & repair criteria• More gathering lines included• EC, IC, SCC requirements• IVP – MAOP confirmation

o What’s IVP going to be?

• HL NPRM may be a partial preview

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Valve and Rupture Detection Rule (NPRM)

• Mandatory automated valves for HCA, Class 3 & 4 locations

• Rupture detection integrated into valve operation• Goal is rapid mitigation and enunciation of large

release events• Anticipated bias toward automatic rather than

remote operation• SCADA and alarm impacts• Likely based on two reports submitted to Congress

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Class Location Requirements

• PLS Act requirement to study• Do IMP actions reduce the need for class locations?• Unlikely that class location requirements will

disappear• Potential for significant reduction in class location

dependence on future pipelines• However, extensive IM would be required• PHMSA actions – Public meeting 4-16-2014• Report to Congress long overdue• No additional reports, publication or rulemaking

schedule14

GIS / NPMS Information Collection

• Increased positional accuracy in NPMS• ± 50 ft. in HCA, CL 2-4, ± 100 ft. elsewhere• Collection of data on 27 attributes – OD, WT, Gr,

seam, age, MAOP, product, class location, HCA, valves, ILI, hydrotest, etc.

• Info to help – emergency responders, local officials, risk assessments, maybe annual reports

• Modified and reduced from earlier proposal• Public meetings – Sept. 10 and Nov. 18• See Operating Standards Manual

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Safety Management Systems

• API-RP-1173 has been issued• PHMSA was heavily involved and highly supportive• NTSB says it exceeded their expectations• Structured around 10 elements – what to do, but not how• Build on existing procedures, standards and programs

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Safety Management Systems

• Leadership & Management Commitment• Stakeholder Engagement• Risk Management• Operational Controls• Incident Investigation, Evaluation & Lessons Learned• Safety Assurance• Management Review & Continuous Improvement• Emergency Preparedness & Response• Competence, Awareness & Training• Documentation & Record Keeping

• Safety Culture and PDCA Cycle17

Conversion & Reversal Guidance

• September 2014 PHMSA Guidance doc issued• Covers conversions, reversals, product changes• Largely follows existing regulations• Helps point out factors & changes that need to be

considered• Pressure & temperature profile changes• HCA identification• Valve and leak detection requirements• Emergency response / spill considerations

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Midstream Jurisdiction• Jurisdiction question raised about 2 years ago• Ad hoc group from advisory committee studied• Processing (not refining)-OSHA; Pipelines-PHMSA• Boundary – 1st pressure control device entering and

last pressure control device leaving processing facilityo Except pipe used predominantly for bypassing facility

• Underground storage o Piping for managing facility inventory-OSHA, for transportation-PHMSAo Piping traversing public or private lands outside facility grounds - PHMSA

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Risk Modeling• PHMSA workshop Sept. 9-10 – available• SME, Scenario, Index, Probabilistic models• Whatever you’re using, it’s wrong• Help decisions to reduce risk, not just find highest risk• Data, threat evaluation, interactions, predictive• Lots of heartburn over this because:• Belief that enough good data and good models will

prevent failures – is wrong. • Very poor at predicting the large consequence, low

frequency (not probability) events• This subject needs creative thinking, but not getting it

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Hazardous Liquid IVP• A lot like gas IVP• Verification of MOP and material records• Pressure testing and material verification• Re-evaluation where risk-based alternative was used• Fatigue analysis for reassessment intervals with cracks• Applicable:• In HCA • Rural gathering that could affect an HCA• Could affect ROW of principal 4 + lane roadways• HVL pipelines• Other non-HCA HL pipeline with MOP > 20% SMYS

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HL IVP Flowchart

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Reauthorization Time !• User fees – up as much as 40%• Update reports to Congress on statutory requirements• Review of gas and liquid IM programs• Deadlines for inspection reports and actions• Improved location mapping technology• R&D collaboration• Info sharing and integrated PL database• Underground storage regs• Great Lakes designated a USA (HCA for liquids)• Security review (TSA)

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Web Locations• Advisory Bulletins

http://phmsa.dot.gov/pipeline/regs/advisory-bulletin• Rulemakings

http://phmsa.dot.gov/pipeline/regs• Notices

http://phmsa.dot.gov/pipeline/regs/notices• Final Rules

http://phmsa.dot.gov/pipeline/regs/rulemaking/final

• Regulatory Agendahttp://www.reginfo.gov/public/do/eAgendaMain

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I saved this for last because at this point, we’re pretty much done.

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A little more on Safety Management Systems

But wait! There’s More!Bonus Section

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Based on PDCA Cycle

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Leadership & Management Commitment

• Intentionally listed as Element 1• Sets tone, provides resources• Maintains involvement• Incentives for improving safety• Assessment of safety culture• New emphasis on Check phase

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Stakeholder Engagement• Identify stakeholders – internal & external• Emphasize two-way information flow• Focus on risk identification and safety performance

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Risk Management• Data and quality• Know your system• Risk identification – what can go wrong?• Risk mitigation• Periodic analyses & review• Apply improvements

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Operational Controls• Operating procedures – regular reviews• Safe work practices• Stop work authority• System integrity – life cycle view• MOC• Include contractors

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Incident Investigation, Evaluation & Lessons Learned

• Procedure for investigating incidents and near-misses

• Include cause, contributing factors & lessons• Evaluate emergency response• Develop recommendations• Update risk management• Communicate findings• Track actions

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Safety Assurance• Maybe better description is Audits & Evaluation• SMS in place, conforming to requirments• Effectiveness of risk management• Analysis of data• Performance evaluations• Evaluation of safety culture and its maturity

How we do things & what we believe

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Management Review & Continuous Improvement

• Management stays involved• Review work products of other PSMS elements• Summary of effectiveness• Opportunities to improve• Evaluate / implement technology improvements

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Emergency Preparedness & Response

• Response procedures in place• Accessible and communicated to all personnel and

contractors• Not just spill or release response – includes weather,

security, civil disturbances, etc.• Review and inclusion when new threats identified• ICS, drills, lessons learned

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Competence, Awareness & Training

• Appropriate competence level for responsibilities & authority

• Information flow about risks and execution of processes and procedures

• Communication of state of pipeline safety at all times and levels

• Understanding of potential consequences of failure to follow procedures

• Create confidence & proactive safety culture

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Documentation & Record Keeping

• Good data is a key – basis for decisions• Documentation – of setting expectations and

recording results• Data readily available across organization• Provides trail of PSMS oversight• Essential for continuous improvement

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