Federal Register: May 13, 2008 (Volume 73, Number 93)
DOCID: fr13my08-116 FR Doc E8-10627
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
Docket ID: [Docket No. PHMSA-RSPA-2004-19856]
NOTICE: NOTICES
DOCID: fr13my08-116
ACTION: Pipeline Safety:
DOCUMENT ACTION: Notice; Issuance of Advisory Bulletin.
SUBJECT CATEGORY:
Pipeline Safety: Notice to Operators of Gas Transmission Pipelines on the Regulatory Status of Direct Sales Pipelines
DOCUMENT SUMMARY:
PHMSA advises gas transmission pipeline operators that the
Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 [[Page 27608]]
eliminated the former exception of direct sales natural gas pipelines
from the definition of an interstate gas pipeline facility. As a
result, direct sales gas transmission pipelines subject to the
jurisdiction of the Federal Energy Regulatory Commission (FERC)
formerly considered to be intrastate pipelines for purposes of the
pipeline safety laws are now defined as interstate pipelines. As
interstate pipelines, direct sales pipelines are subject to the
applicable Federal pipeline safety regulations and PHMSA is responsible
for regulatory oversight and enforcement. In some cases, inspections of
these pipelines may continue to be conducted by a State pipeline safety
agency acting as PHMSA's representative.
SUMMARY:
Operators of Gas Transmission Pipelines on the Regulatory Status of Direct Sales Pipelines,
SUPPLEMENTAL INFORMATION
I. Background
The Federal pipeline safety laws (49 U.S.C. 60101 et seq.) define an ``interstate gas pipeline facility'' as a facility subject to the jurisdiction of the FERC under the Natural Gas Act (15 U.S.C. 717 et seq.). Prior to the passage of the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 (PIPES Act) (Pub. L. 109468), the interstate gas pipeline facility definition contained an exception for a gas pipeline facility transporting gas from an interstate gas pipeline in a State to a direct sales customer in that State buying gas for its own consumption. Because of this exception, these pipelines were considered to be intrastate pipelines and were regulated on a statebystate basis. Section 7 of the PIPES Act changed this by eliminating the exception. As a result, direct sales gas transmission pipelines subject to FERC jurisdiction formerly considered to be intrastate pipelines for purposes of the pipeline safety laws are now considered to be interstate pipelines.
As interstate gas pipeline facilities, direct sales pipelines are subject to the applicable Federal pipeline safety regulations and PHMSA is responsible for regulatory oversight and enforcement. Subjecting direct sales gas pipelines to the same requirements as other interstate gas pipelines should provide improved regulatory certainty and ensure consistency in regulatory requirements.
In cases where a State has both an annual certification for gas under 49 U.S.C. 60105 and an agreement under 49 U.S.C. 60106(b), inspections of these direct sales pipelines may continue to be conducted by a State pipeline safety agency acting as PHMSA's representative although any enforcement action must be referred to PHMSA. If the line has a State certification from the State Public Utility Commission (PUC) that such State PUC has regulatory jurisdiction over the rates and service of the line and is exercising it, that would be grounds for concluding that the line is not subject to FERC jurisdiction and therefore can be regulated as an intrastate pipeline by a State having a certification for gas under 49 U.S.C. 60105. This change does not affect direct sales pipelines that are intrastate pipelines because they extend from another intrastate line to the consumer.
II. Advisory Bulletin (ADB0801)
To: Owners and Operators of Gas Transmission Pipeline Systems.
Subject: Notice to Operators of Gas Transmission Pipelines on the Regulatory Status of Direct Sales Pipelines.
Advisory: PHMSA advises gas transmission pipeline operators that
the Pipeline Inspection, Protection, Enforcement, and Safety Act of
2006 eliminated the exception of direct sales natural gas pipelines
from the definition of an interstate gas pipeline facility. As a
result, direct sales gas transmission pipelines subject to the
jurisdiction of FERC formerly considered to be intrastate pipelines for
purposes of the pipeline safety laws are now defined as interstate
pipelines. As interstate pipelines, direct sales pipelines are subject
to the applicable Federal pipeline safety regulations and PHMSA is
responsible for regulatory oversight and enforcement. In some cases,
inspections of these pipelines may continue to be conducted by a State pipeline safety agency acting as PHMSA's representative.
Authority: 49 U.S.C. chapter 601; 49 CFR 1.53.
Issued in Washington, DC, on May 7, 2008.
Jeffrey D. Wiess,
Associate Administrator for Pipeline Safety.
[FR Doc. E810627 Filed 51208; 8:45 am]
BILLING CODE 491060P
FOR FURTHER INFORMATION CONTACT
Cheryl Whetsel, (202) 366-4431, or by email at cheryl.whetsel@dot.gov.