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									                                          39012               Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Rules and Regulations

                                            (b) Limitations. The powers granted                    DEPARTMENT OF TRANSPORTATION                          criteria (49 U.S.C. 60102(b)(1–2)). Our
                                          by paragraph (a) of this section shall be                                                                      rulemaking actions are reviewed by one
                                          exercised only—                                          Pipeline and Hazardous Materials                      or both of two statutorily-mandated
                                            (1) In the enforcement of laws                         Safety Administration                                 advisory committees—the Technical
                                          regarding property in the custody of the                                                                       Pipeline Safety Standards Committee,
                                          Postal Service, property of the Postal                   49 CFR Parts 192 and 195                              and the Technical Hazardous Liquid
                                          Service, the use of the mails, and other                                                                       Pipeline Safety Standards Committee—
                                                                                                   [Docket No. PHMSA–04–18938; Amdt. Nos.
                                          postal offenses. With the exception of                   192–104, 195–87]
                                                                                                                                                         which provide peer review of all
                                          enforcing laws related to the mails:                                                                           proposed pipeline safety rules to assure
                                                                                                   RIN 2137–AE07                                         technical feasibility, reasonableness,
                                            (i) The Office of Inspector General                                                                          cost-effectiveness, and practicability.
                                          will investigate all allegations of                      Pipeline Safety: Integrity Management
                                          violations of postal laws or misconduct                  Program Modifications and                             Integrity Management Program
                                          by postal employees, including mail                      Clarifications                                          Since 2000, PHMSA has issued IM
                                          theft; and                                                                                                     requirements for pipeline operators.
                                            (ii) The Inspection Service will                       AGENCY:  Pipeline and Hazardous                       PHMSA’s pipeline IM regulations
                                          investigate all allegations of violations                Materials Safety Administration                       require operators of hazardous liquid
                                          of postal laws or misconduct by all                      (PHMSA), DOT.                                         and gas transmission pipelines to assess,
                                          other persons.                                           ACTION: Final rule.                                   evaluate, repair, and validate through
                                          *      *    *     *     *                                                                                      comprehensive analyses the integrity of
                                                                                                   SUMMARY: This action modifies the
                                                                                                                                                         pipeline segments in areas where a leak
                                          I 5. Section 233.7 is amended by                         integrity management regulations for                  or failure would do the most damage.
                                          paragraph (a) to read as follows:                        hazardous liquid and natural gas                      These areas are referred to as ‘‘High
                                                                                                   transmission pipelines. The                           Consequence Areas’’ and include
                                          § 233.7 Forfeiture authority and
                                                                                                   modifications include adding an eight-                populated, unusually sensitive
                                          procedures.
                                                                                                   month window to the period for                        environmental areas, and other areas
                                            (a) Designation of officials having                    reassessing hazardous liquid pipelines;               defined by the IM regulations.
                                          forfeiture authority. The Chief Postal                   modifying notification requirements for                 On December 1, 2000, PHMSA issued
                                          Inspector is authorized to perform all                   operators of hazardous liquid and                     IM program regulations at 49 CFR
                                          duties and responsibilities necessary on                 natural gas pipelines; repealing a                    195.452 for operators with more than
                                          behalf of the Postal Service and the                     requirement for gas operators to notify               500 miles of hazardous liquid pipeline
                                          Office of Inspector General to enforce 18                local authorities; and allowing                       (65 FR 75378). On January 14, 2002,
                                          U.S.C. 981, 2254, and 21 U.S.C. 881, to                  alternatives in calculating pressure                  PHMSA issued IM program repair
                                          delegate all or any part of this authority               reduction when making an immediate                    criteria (67 FR 1650). On January 16,
                                          to Deputy Chief Inspectors, Inspectors                   repair on a hazardous liquid pipeline.                2002, the IM program regulations were
                                          in Charge, and Inspectors of the Postal                  This action is intended to improve                    extended to operators with less than 500
                                          Inspection Service, and to issue such                    pipeline safety by clarifying the                     miles of hazardous liquid pipeline (67
                                          instructions as may be necessary to                      integrity management regulations and                  FR 2136). On December 15, 2003,
                                          carry out this authority.                                providing operators with increased                    PHMSA issued IM program regulations
                                          *     *     *     *    *                                 flexibility in implementing their                     for gas transmission pipelines at 49 CFR
                                                                                                   integrity management (IM) programs.                   Part 192, Subpart O (68 FR 69778).
                                          PART 273—ADMINISTRATION OF                               DATES: This rule is effective August 16,
                                          PROGRAM FRAUD CIVIL REMEDIES                             2007.                                                 Petition for Rulemaking
                                          ACT                                                                                                               The American Petroleum Institute
                                                                                                   FOR FURTHER INFORMATION CONTACT:
                                                                                                   Mike Israni by phone at (202) 366–4571                (API) and the Association of Oil
                                          I 6. The authority citation for part 273                                                                       Pipelines (AOPL) represent members
                                                                                                   or by e-mail at mike.israni@dot.gov.
                                          continues to read as follows:                                                                                  who operate more than 85 percent of the
                                                                                                   SUPPLEMENTARY INFORMATION:
                                            Authority: 31 U.S.C. Chapter 38; 39 U.S.C.                                                                   U.S hazardous liquid infrastructure. On
                                          401.                                                     I. Background                                         June 18, 2004, API and AOPL jointly
                                                                                                   Statutory and Regulatory Requirements                 submitted a petition for rulemaking
                                          I 7. Section 273.2 is amended by                                                                               seeking changes to the hazardous liquid
                                          revising paragraph (c) to read as follows:                  PHMSA is the Federal regulatory                    pipeline IM regulations.
                                                                                                   agency responsible for promoting the                     API and AOPL requested the rule
                                          § 273.2   Definitions.
                                                                                                   safe, reliable, and environmentally                   changes to benefit pipeline safety and
                                          *     *     *     *     *                                sound operation of over two million                   provide operators additional flexibility
                                            (c ) Investigating Official refers to the              miles of natural gas and hazardous                    in the following three areas: Adding
                                          Inspector General of the Postal Service                  liquid pipelines in the United States.                flexibility to reassessment intervals;
                                          or any designee within the United States                 PHMSA has broad authority under 49                    adding flexibility to scheduling repairs,
                                          Office of the Inspector General who                      U.S.C. 60102 to issue regulations                     and providing for notification to
                                          serves in a position for which the rate                  establishing standards for pipeline                   PHMSA when an operator is unable to
                                          of basic pay is not less than the                        facility design, installation, inspection,            make a repair because of permitting or
                                          minimum rate of basic pay for grade                      emergency planning and response,                      other problems.
                                          GS–15 under the General Schedule.                        testing, construction, extension,                        An important concept in IM is that an
                                          *     *     *     *     *                                operation, replacement, and                           operator’s program is to evolve into a
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                                                                                                   maintenance. By law, PHMSA pipeline                   more detailed and comprehensive
                                          Stanley F. Mires,                                        safety standards must be both                         program as the operator gains
                                          Chief Counsel, Legislative.                              practicable and designed to meet the                  information about its pipeline system.
                                          [FR Doc. E7–13740 Filed 7–16–07; 8:45 am]                need for environmental safety and                     An operator is required to continually
                                          BILLING CODE 7710–12–P                                   protection, taking account of specified               improve its IM program. Similarly, as


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                                                              Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Rules and Regulations                                          39013

                                          PHMSA gains experience in enforcing                      (1) Flexibility in Reassessment Intervals             and integrity management principles. At
                                          the IM regulations, we see ways that the                    Current regulations require hazardous              this point, we do not have sufficient
                                          regulations can be clarified and                         liquid pipeline operators to set up                   scientific and technical data to support
                                          improved. Based on our experience and                    intervals not to exceed five years for                modifying the five-year interval in
                                          the operators’ experience with IM,                       continually assessing pipeline integrity              regulation.
                                          PHMSA considers how the IM                                                                                        Nevertheless, section § 195.452(j)(4) of
                                                                                                   (§ 195.452(j)(3)). The NPRM proposed
                                          regulations can be improved to benefit                                                                         the IM regulations allows hazardous
                                                                                                   adding an eight-month window to the
                                          public safety and provide operators the                                                                        liquid operators to seek a variance from
                                                                                                   five-year time frame for operators to
                                          flexibility they need in carrying out                                                                          the five-year interval for particular
                                                                                                   complete reassessments.
                                          effective IM programs.                                                                                         pipeline facilities based on engineering
                                                                                                      Comment: No commenter opposed
                                                                                                                                                         data or if needed technology is not
                                             PHMSA published a notice of                           this proposal. Commenters supported
                                                                                                                                                         available. In these instances, operators
                                          proposed rulemaking (NPRM) on                            the proposed revision, stating they
                                                                                                                                                         notify PHMSA and provide scientific
                                          December 15, 2005 (70 FR 74265),                         would benefit from flexibility to allow
                                                                                                                                                         and technical justifications and
                                          proposing to revise its pipeline IM                      for unforeseeable events that could
                                                                                                                                                         alternate intervals for variation requests.
                                          regulations to address the API and                       affect intervals. Commenters asserted
                                                                                                                                                         PHMSA (and States where pipelines are
                                          AOPL petition to improve the IM                          added flexibility would not materially                under State jurisdiction) reviews the
                                                                                                   affect pipeline safety. They noted that               documentation to ensure sufficient
                                          regulations and to get additional
                                                                                                   adding the proposed window to the                     justification has been provided for the
                                          information about reasons for repair
                                                                                                   prescribed reassessment interval would                proposed interval. This approach has
                                          delays. In the NPRM, PHMSA proposed
                                                                                                   comport with similar latitude provided                been adequate to cover situations in
                                          four revisions. First, we proposed to
                                                                                                   in other periodic intervals under the                 which longer intervals are needed.
                                          allow more flexibility in the integrity                  pipeline safety regulations (e.g., for
                                          reassessment intervals for hazardous                                                                              Both PHMSA and the U.S. General
                                                                                                   patrolling). One commenter suggested                  Accountability Office have testified that
                                          liquid pipelines by adding an eight-                     PHMSA develop an approach for
                                          month window to the five-year time                                                                             assessment intervals for natural gas
                                                                                                   extending reassessment intervals based                transmission pipelines should be
                                          frame for operators to complete                          on sound engineering, technical studies,
                                          reassessments. Second, we proposed to                                                                          established based on technical data, risk
                                                                                                   and IM principles. Commenters also                    factors, and engineering analyses.
                                          require hazardous liquid pipeline and                    recognized operators may establish                    However, making those changes to the
                                          gas transmission pipeline operators to                   shorter reassessment intervals as a result            gas IM regulations in this action is
                                          notify us of repair-related reductions in                of risk prioritization.                               outside the scope of the NPRM.
                                          operating pressure. The proposal would                      A commenter also requested that
                                          require operators to notify us whenever                  PHMSA extend similar flexibility to gas               (2) Scheduling Repairs
                                          they reduce pipeline pressure to make a                  transmission pipeline operators,                         In the NPRM, PHMSA requested
                                          repair, to provide reasons for any                       maintaining that the current                          submission of data and comments on
                                          pressure reduction, and to provide                       reassessment time frames on gas                       operators’ experience with
                                          further notice and explanation when a                    transmission pipelines do not have a                  identification of defect characteristics
                                          pressure reduction exceeds 365 days.                     technical basis. The commenter offered                needing short-term (60 and 180-day)
                                          Third, we proposed to repeal as                          RSTRENG, a means of predicting the                    remediation. The NPRM allowed a
                                          unnecessary an existing regulation                       effects of metal loss on the remaining                longer period to submit these analyses,
                                          requiring gas operators to provide notice                strength of the corroded pipe, and other              and API and AOPL responded to this
                                          of pressure reductions to local                          industry-accepted methods as                          request by submitting engineering
                                          authorities. Lastly, PHMSA proposed to                   alternatives that could be useful in                  analysis produced by Kiefner and
                                          amend an existing provision for                          setting reassessment time frames on gas               Associates, Inc. on April 13, 2006. This
                                          calculating a pressure reduction when                    transmission pipelines.                               analysis required detailed technical
                                          making an immediate repair on a                             PHMSA Response: Adding an eight-                   review.
                                          hazardous liquid pipeline. The proposal                  month window to the hazardous liquid                     PHMSA contracted with Oak Ridge
                                          would allow use of an alternative                        pipeline five-year reassessment interval              National Laboratory to review the API/
                                          method to calculate reduced operating                    in § 195.452(j)(3) gives operators                    AOPL analysis. The Oak Ridge review
                                          pressure when the prescribed formula is                  flexibility in scheduling and completing              documented which of the proposed
                                          not applicable or results in a calculated                reassessments without compromising                    changes in the API analysis could lead
                                          pressure higher than the operating                       pipeline safety. Operators must allow                 to improvements in safety and which
                                          pressure.                                                time in their schedules for unforeseen                could lead to reduced safety. It
                                                                                                   problems or contingencies that could                  attempted neither to evaluate the
                                          II. Disposition of NPRM Comments                         delay assessments. In practice, operators             significance to safety of each proposed
                                                                                                   must thus schedule their assessments on               change, nor to describe the composite
                                            PHMSA received comments from 12                        intervals of less than five years in order            impact on safety of the group of
                                          parties: API and AOPL; the American                      to assure compliance with a five-year                 proposed changes. The Oak Ridge
                                          Gas Association; Texas Pipeline                          regulatory requirement. This was never                review did identify the technical factors
                                          Association; Kinder Morgan Energy                        PHMSA’s intent. This final rule                       that a comprehensive evaluation of the
                                          Partners, L.P.; Southwest Gas                            maintains a nominal five-year interval                proposed changes should consider.
                                          Corporation; Paiute Pipeline Company;                    while recognizing that unexpected                     PHMSA is currently evaluating operator
                                          Orange and Rockland Utilities, Inc.;                     contingencies can arise. This change is               treatment of many of these factors in
                                          Duke Energy Gas Transmission                             consistent with other pipeline safety                 ongoing IMP inspections.
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                                          Corporation; Magellan Midstream                          regulations specifying compliance                        DOT’s Inspector General issued an
                                          Partners, L.P.; Panhandle Energy; Puget                  intervals.                                            audit in September 2006 addressing,
                                          Sound Energy; and Enbridge Energy                           PHMSA agrees that reassessment                     among other issues, uncertainties in the
                                          Company, Inc.—Liquids Transportation                     intervals should be adjusted over time                characterization of defects using in-line
                                          Segment.                                                 based on engineering, technical studies,              inspection (ILI). Although uncertainties,


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                                          39014               Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Rules and Regulations

                                          both modest under-sizing and over-                       position to help streamline the permit                serve to mitigate the safety impacts of
                                          sizing of defects, in ILI readings are a                 process.                                              repair delays, making early notifications
                                          fact of life, improvements in technology                    For gas transmission pipeline                      unnecessary. PHMSA believes the
                                          are continuing to reduce these                           operators, PHMSA proposed repealing                   current notification requirements
                                          uncertainties. ILI vendors and pipeline                  the requirement for notification of local             address most cases where, for safety
                                          operators must account for potential                     pipeline safety authorities. PHMSA is                 reasons, notification is important—those
                                          inaccuracies in tool indications in their                not aware of any instance where an                    instances when an operator is unable to
                                          evaluation of ILI results. PHMSA                         intrastate gas transmission pipeline is               make repairs within the required time
                                          inspections are evaluating approaches                    regulated by a local, rather than a State             frames and cannot provide safety
                                          being used by operators to assure                        or Federal, authority.                                through pressure reductions. Thus, this
                                          prudent decisions are made in the light                     Comment: The commenters supported                  existing notification requirement will
                                          of these uncertainties. The PHMSA                        efforts to better understand repair delays            remain unchanged.
                                          inspection approach has been evaluated                   and supported efforts to improve                         In addition to the existing
                                          by the IG, and the issue closed                          pipeline IM. Nevertheless, the                        requirement, PHMSA has added a
                                          satisfactorily. PHMSA is collecting                      commenters opposed the notifications                  requirement for notification when a
                                          additional data to better characterize the               as proposed, stating that PHMSA needs                 pressure reduction exceeds 365 days.
                                          extent to which ILI has mischaracterized                 to provide a clear statement of issues,               PHMSA believes that notification of
                                          actual pipeline defects. PHMSA’s                         analysis of possible solutions, and the               extended delay, with justification for
                                          ongoing inspection process is providing                  expected costs and benefits of such a                 the pressure reduction, will provide
                                          the necessary assurance that operators                   regulatory solution. Commenters                       important information on conditions
                                          are addressing in a responsible way the                  contended the proposed notifications                  interfering with the operator’s ability to
                                          impact of various sources of uncertainty                 would impose a significant, undue, and                complete defect remediation without
                                          on key decisions, including whether to                   problematic administrative burden on                  placing an undue burden on the
                                          excavate, timing of repairs, and timing                  industry. Commenters said many                        operator. This notification will enable
                                          of reassessment interval PHMSA will                      discretionary pressure reductions are                 PHMSA to intervene if necessary in
                                          address potential changes to repair                      part of voluntary, normal, and                        order to facilitate needed repairs (e.g.,
                                          schedules in a future rulemaking action.                 circumstantial events unrelated to                    by assisting in resolving permitting
                                                                                                   remediation scheduling requirements.                  delays) and to evaluate the necessity for
                                          (3) Notification of Special                                 Some commenters recommended a                      additional safety measures until
                                          Circumstances—Pressure Reduction                         demonstration project and suggested                   remediation can be completed.
                                                                                                   PHMSA collect and review the                             PHMSA expects that greater
                                             Both the hazardous liquid                             proposed notification data over a two-                understanding of the causes of repair
                                          (§ 195.452(h)) and gas transmission                      year period before making a final                     delays will help identify where extra
                                          (§ 192.933) pipeline IM remediation                      determination on the need for continued               actions can help. We are particularly
                                          criteria require operators to reduce                     notification. Commenters also suggested               interested in whether any delays are due
                                          pressure or to shut down the pipeline                    collecting the information through                    to permitting problems. We also agree
                                          until they can remediate all anomalous                   annual reporting for any case where                   that periodic information collection, as
                                          conditions. The IM regulations do not                    operators could not meet the                          part of the annual report, would reduce
                                          require notification when an operator                    remediation schedule requirements of                  the paperwork burden without
                                          reduces pressure unless the operator                     § 195.452(h).                                         compromising safety. In the future,
                                          cannot meet its schedule for evaluating                     Other commenters suggested pressure                PHMSA will consider revising
                                          and remediating conditions and cannot                    reduction notifications should apply                  requirements for annual reports to
                                          provide safety through a temporary                       where remediation requirements cannot                 include the number of times repairs
                                          decrease in operating pressure. If a                     be met due to circumstances beyond the                required by IM regulations are delayed,
                                          pressure reduction exceeds 365 days, a                   operator’s control, when events impact                beyond required repair times, because of
                                          gas transmission pipeline operator must                  energy supply, or when the operator                   permitting issues.
                                          provide technical justification that the                 cannot meet the remediation time limits                  PHMSA has clarified that the
                                          continued pressure reduction will not                    and the pressure reduction exceeds 365                notification requirements apply to
                                          jeopardize the pipeline’s integrity, and a               days. Notifications in these situations               certain pressure reductions made for
                                          hazardous liquid pipeline operator must                  would provide PHMSA with more                         purposes of IM remediation
                                          take further remedial action to ensure                   information on conditions interfering                 requirements. We have also modified
                                          the safety of the pipeline.                              with repair attempts and help PHMSA                   the wording in §§ 192.933(c) and
                                             PHMSA proposed amending its                           recognize patterns potentially affecting              195.452(h)(3) to make it clearer and
                                          regulations to require an operator of a                  pipeline safety.                                      consistent with wording in the IM
                                          gas transmission or hazardous liquid                        Commenters also requested PHMSA                    notification requirements. There is no
                                          pipeline to notify PHMSA when it                         clarify that the notifications requested              change in the requirement. With the
                                          reduces pressure on an IM program                        are for pressure reductions related to IM             revised wording, this section will now
                                          segment (to remediate a defect), and to                  remediation and not for other situations,             require an operator to explain why it
                                          provide a justification for the pressure                 such as pressure reductions done as                   cannot meet its schedule for evaluation
                                          reduction. If a repair was not completed                 safety precautions.                                   and remediation of a condition and that
                                          within 365 days, the operator would                         PHMSA Response: After analyzing the                the changed schedule will not
                                          again be required to notify PHMSA and                    comments, PHMSA agrees that adding a                  jeopardize public safety (gas
                                          provide an explanation for the delay.                    requirement to notify PHMSA (and                      transmission) or public safety or
                                          PHMSA intended the proposed                              States, when applicable) of every                     environmental protection (hazardous
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                                          notification to provide better                           pressure reduction would add a                        liquid).
                                          information on what causes schedule                      significant burden and likely would not                  We received favorable comments on
                                          delays (permitting, scheduling, other);                  result in commensurate useful                         the proposal to eliminate the
                                          and where and under what                                 information. Temporary pressure                       notification provisions for local pipeline
                                          circumstances PHMSA would be in a                        reductions add extra safety margin and                safety authorities. Accordingly, we are


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                                                              Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Rules and Regulations                                          39015

                                          repealing this requirement as proposed.                  IV. Regulatory Analyses and Notices                   reductions exceeding 365 days will also
                                          For gas transmission pipeline operators,                                                                       create benefits, and negligible added
                                                                                                   A. Privacy Act
                                          State notification requirements will                                                                           costs. Together, PHMSA expects these
                                          continue for intrastate pipelines                          Anyone can search the electronic                    changes to the IM regulations for
                                          regulated by that State or for interstate                form of all comments received in                      hazardous liquid and gas transmission
                                          gas transmission pipelines in States                     response to any of our dockets by the                 pipelines to create positive net benefits
                                          where PHMSA has an interstate agent                      name of the individual submitting the                 to the affected industry. Based on the
                                                                                                   comment (or signing the comment, if                   cost benefit analysis the regulatory
                                          agreement.
                                                                                                   submitted on behalf of an association,                changes will not have a significant
                                          (4) Formula for Reducing Operating                       business, labor union, etc.). DOT’s                   impact on a substantial number of small
                                          Pressure                                                 complete Privacy Act Statement was                    entities.
                                                                                                   published in the Federal Register on                     PHMSA developed this final rule in
                                             Section 195.452(h)(4) requires a                      April 11, 2000 (65 FR 19477) and is                   accordance with Executive Order 13272
                                          hazardous liquid pipeline operator to                    available on the Web at http://                       (‘‘Proper Consideration of Small Entities
                                          calculate a temporary reduction in                       dms.dot.gov.                                          in Agency Rulemaking’’) and DOT’s
                                          operating pressure using the formula in                                                                        procedures and policies to promote
                                                                                                   B. Executive Order 12866 and DOT
                                          section 451.7 of ASME/ANSI B 31.4                                                                              compliance with the Regulatory
                                                                                                   Regulatory Policies and Procedures
                                          when making an immediate repair. The                                                                           Flexibility Act to ensure that the
                                          requirement is to ensure an extra safety                    This final rule is not considered a                potential impact of rules on small
                                          margin. However, this formula only                       significant regulatory action under                   entities are properly considered. The
                                          applies to metal loss anomalies, not to                  section 3(f) of Executive Order 12866                 Small Business Administration’s small
                                          all immediate repair conditions, and can                 (58 FR 51735; Oct. 4, 1993) or the                    business definition is either $6 million
                                          result in a calculated pressure higher                   Regulatory Policies and Procedures of                 in revenue (for natural gas pipelines
                                          than the original operating pressure.                    the Department of Transportation (44 FR               under North American Industry
                                                                                                   11034; Feb. 26, 1979). A final regulatory             Classification System (NAICS) 486210)
                                             PHMSA proposed revising the                           evaluation is in the docket for this                  or 1,500 employees (for crude oil and
                                          provision by allowing hazardous liquid                   rulemaking.                                           refined petroleum product pipelines
                                          pipeline operators to use the ASME/                         The rule’s provision concerning                    under NAICS 486110 and 486910).
                                          ANSI B 31.4 formula, if applicable. If                   scheduling continued integrity                        Based on a review of data collected from
                                          not applicable to the anomaly, or if the                 assessments will yield benefits in the                the hazardous liquid pipeline industry,
                                          formula results in a calculated pressure                 form of additional flexibility, and will              PHMSA estimates there are 10–20 small
                                          higher than the original operating                       have no cost effects. PHMSA believes                  entities. PHMSA does not have an
                                          pressure, operators could use an                         the change to the notification                        estimate of the number of gas
                                          alternative acceptable method to                         requirement for pressure reductions                   transmission pipeline operators that
                                          calculate pressure reductions.                           exceeding 365 days will add minimally                 meet the small business definition.
                                             Comment: Commenters supported                         to the annual average cost to each                    Information collection determining
                                          PHMSA’s proposal to allow operators to                   operator, and to the number of operators              pipeline operator staffing or revenue
                                          use alternative methods to address                       affected. PHMSA expects the benefits                  would require separate Office of
                                                                                                   will offset costs. Together, PHMSA                    Management and Budget (OMB)
                                          anomalies and pipeline operating
                                                                                                   expects these changes to IM regulations               approval. However, as stated above,
                                          conditions. No commenter opposed the
                                                                                                   for hazardous liquid and gas                          compliance with this regulation requires
                                          proposal.
                                                                                                   transmission pipelines to create positive             a trivial expenditure and imposes a
                                             PHMSA Response: We are adopting                       net benefits.                                         minimal burden on small businesses.
                                          the proposal with minor wording                                                                                   I certify this final rule would not have
                                          changes. This final rule provides                        C. Regulatory Flexibility Act and
                                                                                                                                                         a significant economic impact on a
                                                                                                   Executive Order 13272
                                          flexibility in methods an operator may                                                                         substantial number of small entities.
                                          use to calculate a pressure reduction                       The Regulatory Flexibility Act (5                  The costs associated with this final rule
                                          when making immediate repairs on a                       U.S.C. 601–611) requires agencies to                  will be offset with benefits such as
                                          hazardous liquid pipeline.                               review each new regulation and assess                 increased flexibility for operators. The
                                                                                                   its impact on small businesses and other              changed notification requirements for
                                          III. Advisory Committee                                  small entities to determine whether the               pressure reductions exceeding 365 days
                                          Recommendations                                          final rule will have a significant impact             would create benefits and negligible
                                                                                                   on a substantial number of small                      added costs.
                                            The amendments adopted in this final                   entities. This rule imposes minimal new
                                          rule have been reviewed and approved                     costs of compliance on the regulated                  D. Executive Order 13132
                                          by both of our pipeline safety standards                 community. The requirements do not                      PHMSA analyzed this rule under the
                                          advisory committees, the Technical                       apply to a substantial number of small                principles and criteria contained in
                                          Pipeline Safety Standards Committee,                     entities. The revisions to the IM rules               Executive Order 13132 (Federalism).
                                          and the Technical Hazardous Liquid                       will affect hazardous liquid pipeline                 None of the changes in this final rule:
                                          Pipeline Safety Standards Committee.                     operators and gas transmission pipeline               (1) Have a substantial direct effect on
                                          On June 28, 2006, PHMSA held a joint                     operators. PHMSA expects notification                 States, relationships between the
                                          meeting of the Committees and two                        costs per operator to be significantly less           Federal government and the States, or
                                          concurrent public workshops in                           than $3.04 annually, a non-significant                on distribution of power and
                                          Alexandria, VA. PHMSA presented the                      burden on any pipeline operator, large                responsibilities among various levels of
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                                          proposed changes to the committees for                   or small. The changes to add scheduling               government; (2) imposes substantial
                                          a vote. Following a brief discussion, the                flexibility to the integrity reassessments            direct compliance costs on States and
                                          committee members unanimously                            will create positive benefits and impose              local governments; or (3) preempts State
                                          carried a motion to accept the rule                      minimal additional costs. The changed                 law. Therefore, the consultation and
                                          changes.                                                 notification requirements for pressure                funding requirements of Executive


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                                          39016               Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Rules and Regulations

                                          Order 13132 (64 FR 43255; August 10,                     burden on individual operators or the                 covered segment. An operator must
                                          1999) do not apply.                                      industry because of the notification                  determine any temporary reduction in
                                                                                                   requirement in this rule.                             operating pressure required by this
                                          E. Executive Order 13175
                                                                                                                                                         section using ASME/ANSI B31G
                                             PHMSA analyzed this rule under the                    I. National Environmental Policy Act
                                                                                                                                                         (incorporated by reference, see § 192.7)
                                          principles and criteria contained in                       PHMSA analyzed this rule under                      or AGA Pipeline Research Committee
                                          Executive Order 13175 (‘‘Consultation                    section 102(2)(c) of the National                     Project PR–3–805 (‘‘RSTRENG,’’
                                          and Coordination with Indian Tribal                      Environmental Policy Act (42 U.S.C.                   incorporated by reference, see § 192.7)
                                          Governments’’) (63 FR 27655; November                    4332), the Council on Environmental                   or reduce the operating pressure to a
                                          9, 2000). Because this rule will not                     Quality regulations (40 CFR 1500–1508),               level not exceeding 80 percent of the
                                          significantly or uniquely affect the                     and DOT Order 5610.1C, and                            level at the time the condition was
                                          communities of the Indian tribal                         determined this action will not                       discovered. (See appendix A to this part
                                          governments, the funding and                             significantly affect the quality of the               for information on availability of
                                          consultation requirements of this                        human environment. PHMSA did not                      incorporation by reference information.)
                                          Executive Order do not apply.                            receive comments on the environmental                 An operator must notify PHMSA in
                                                                                                   assessment prepared on the proposed                   accordance with § 192.949 if it cannot
                                          F. Executive Order 13211
                                                                                                   rule. The final environmental                         meet the schedule for evaluation and
                                            This rule is not a ‘‘significant energy                assessment is in the Docket.                          remediation required under paragraph
                                          action’’ under Executive Order 13211                                                                           (c) of this section and cannot provide
                                          (Actions Concerning Regulations That                     List of Subjects
                                                                                                                                                         safety through temporary reduction in
                                          Significantly Affect Energy Supply,                      49 CFR Part 192                                       operating pressure or other action. An
                                          Distribution, or Use). It is not likely to                                                                     operator must also notify a State
                                          have a significant adverse effect on                       Pipeline safety, Reporting and
                                                                                                   recordkeeping requirements.                           pipeline safety authority when either a
                                          energy supply, distribution, or use. This                                                                      covered segment is located in a State
                                          rule does not change the pressure                        49 CFR Part 195                                       where PHMSA has an interstate agent
                                          reduction restrictions in the IM                                                                               agreement, or an intrastate covered
                                                                                                     Pipeline safety, Reporting and
                                          regulations. It only changes the                                                                               segment is regulated by that State.
                                                                                                   recordkeeping requirements.
                                          notification requirements associated
                                          with those pressure reductions.                          I For the reasons set forth in the                       (2) Long-term pressure reduction.
                                                                                                   preamble, PHMSA amends 49 CFR parts                   When a pressure reduction exceeds 365
                                          G. Unfunded Mandates                                     192 and 195 as follows:                               days, the operator must notify PHMSA
                                             This rule does not impose unfunded                                                                          under § 192.949 and explain the reasons
                                          mandates under the 1995 Unfunded                         PART 192—TRANSPORTATION OF                            for the remediation delay. This notice
                                          Mandates Reform Act. It does not result                  NATURAL AND OTHER GAS BY                              must include a technical justification
                                          in costs of $100 million or more to                      PIPELINE: MINIMUM FEDERAL                             that the continued pressure reduction
                                          either State, local, or tribal governments,              SAFETY STANDARDS                                      will not jeopardize the integrity of the
                                          in aggregate, or to the private sector, and                                                                    pipeline. The operator also must notify
                                                                                                   I 1. The authority citation for part 192
                                          is the least burdensome alternative for                                                                        a State pipeline safety authority when
                                                                                                   continues to read as follows:
                                          achieving the objectives.                                                                                      either a covered segment is located in a
                                                                                                     Authority: 49 U.S.C. 5103, 60102, 60104,            State where PHMSA has an interstate
                                          H. Paperwork Reduction Act                               60108, 60109, 60110, 60113, and 60118; and            agent agreement, or an intrastate
                                            PHMSA evaluated the rule, as                           49 CFR 1.53.                                          covered segment is regulated by that
                                          required by the Paperwork Reduction                      I 2. Amend § 192.933 by revising                      State.
                                          Act of 1995 (44 U.S.C. 3507(d)), and                     paragraphs (a) and (c), to read as                    *      *     *     *    *
                                          believes the rule will impose no                         follows:
                                          significant paperwork burden on                                                                                   (c) Schedule for evaluation and
                                          industry or individual operators.                        § 192.933 What actions must an operator               remediation. An operator must complete
                                          Industry commenters to the rule                          take to address integrity issues?                     remediation of a condition according to
                                          supported the revised notification                          (a) General requirements. An operator              a schedule prioritizing the conditions
                                          requirements. As required, PHMSA                         must take prompt action to address all                for evaluation and remediation. Unless
                                          presented a separate paperwork analysis                  anomalous conditions the operator                     a special requirement for remediating
                                          to OMB for review and will file a copy                   discovers through the integrity                       certain conditions applies, as provided
                                          of the analysis in the docket.                           assessment. In addressing all                         in paragraph (d) of this section, an
                                            This rule imposes minimal                              conditions, an operator must evaluate                 operator must follow the schedule in
                                          information collection requirements.                     all anomalous conditions and remediate                ASME/ANSI B31.8S (incorporated by
                                          Based on information currently                           those that could reduce a pipeline’s                  reference, see § 192.7), section 7, Figure
                                          available to PHMSA, 26 operators filed                   integrity. An operator must be able to                4. If an operator cannot meet the
                                          74 pressure reduction notifications over                 demonstrate that the remediation of the               schedule for any condition, the operator
                                          the last three years. The revised                        condition will ensure the condition is                must explain the reasons why it cannot
                                          notification requirements will likely                    unlikely to pose a threat to the integrity            meet the schedule and how the changed
                                          result in minimal additional paperwork                   of the pipeline until the next                        schedule will not jeopardize public
                                          burden. The estimated average time to                    reassessment of the covered segment.                  safety.
                                          prepare a notification request is 30                        (1) Temporary pressure reduction. If               *      *     *     *    *
                                          minutes. PHMSA does not know how                         an operator is unable to respond within
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                                          many more notifications will result from                 the time limits for certain conditions                PART 195—TRANSPORTATION OF
                                          the requirement but estimates, on                        specified in this section, the operator               HAZARDOUS LIQUIDS BY PIPELINE
                                          average, less than $3.04 per affected                    must temporarily reduce the operating
                                          operator per year. Therefore, there                      pressure of the pipeline or take other                I 3. The authority citation for part 195
                                          should be no significant cost or hourly                  action that ensures the safety of the                 continues to read as follows:


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                                                              Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / Rules and Regulations                                           39017

                                            Authority: 49 U.S.C. 5103, 60102, 60104,                  (ii) Long-term pressure reduction.                 ANSI B31.4 (incorporated by reference,
                                          60108, 60109, 60118; and 49 CFR 1.53.                    When a pressure reduction exceeds 365                 see § 195.3), if applicable. If the formula
                                          I 4. Amend § 195.452 by revising                         days, the operator must notify PHMSA                  is not applicable to the type of anomaly
                                          paragraphs (h)(1), (h)(3), (h)(4), and (j)(3)            in accordance with paragraph (m) of this              or would produce a higher operating
                                          to read as follows:                                      section and explain the reasons for the               pressure, an operator must use an
                                                                                                   delay. An operator must also take                     alternative acceptable method to
                                          § 195.452 Pipeline integrity management in               further remedial action to ensure the                 calculate a reduced operating pressure.
                                          high consequence areas.                                  safety of the pipeline.                               An operator must treat the following
                                          *     *      *    *     *                                *       *    *    *     *                             conditions as immediate repair
                                            (h) * * * (1) General requirements.                       (3) Schedule for evaluation and                    conditions:
                                          An operator must take prompt action to                   remediation. An operator must complete                *      *    *      *    *
                                          address all anomalous conditions the                     remediation of a condition according to                  (3) Assessment intervals. An operator
                                          operator discovers through the integrity                 a schedule prioritizing the conditions                must establish five-year intervals, not to
                                          assessment or information analysis. In                   for evaluation and remediation. If an                 exceed 68 months, for continually
                                          addressing all conditions, an operator                   operator cannot meet the schedule for                 assessing the line pipe’s integrity. An
                                          must evaluate all anomalous conditions                   any condition, the operator must                      operator must base the assessment
                                          and remediate those that could reduce                    explain the reasons why it cannot meet                intervals on the risk the line pipe poses
                                          a pipeline’s integrity. An operator must                 the schedule and how the changed                      to the high consequence area to
                                          be able to demonstrate that the                          schedule will not jeopardize public                   determine the priority for assessing the
                                          remediation of the condition will ensure                 safety or environmental protection.                   pipeline segments. An operator must
                                          the condition is unlikely to pose a threat                  (4) Special requirements for                       establish the assessment intervals based
                                          to the long-term integrity of the                        scheduling remediation. (i) Immediate                 on the factors specified in paragraph (e)
                                          pipeline. An operator must comply with                   repair conditions. An operator’s                      of this section, the analysis of the results
                                          § 195.422 when making a repair.                          evaluation and remediation schedule                   from the last integrity assessment, and
                                            (i) Temporary pressure reduction. An                   must provide for immediate repair                     the information analysis required by
                                          operator must notify PHMSA, in                           conditions. To maintain safety, an                    paragraph (g) of this section.
                                          accordance with paragraph (m) of this                    operator must temporarily reduce the                  *      *    *      *    *
                                          section, if the operator cannot meet the                 operating pressure or shut down the
                                          schedule for evaluation and remediation                  pipeline until the operator completes                   Issued in Washington, DC, on July 6, 2007.
                                          required under paragraph (h)(3) of this                  the repair of these conditions. An                    Thomas J. Barrett,
                                          section and cannot provide safety                        operator must calculate the temporary                 Administrator.
                                          through a temporary reduction in                         reduction in operating pressure using                 [FR Doc. E7–13772 Filed 7–16–07; 8:45 am]
                                          operating pressure.                                      the formula in section 451.7 of ASME/                 BILLING CODE 4910–60–P
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