| (a) This section applies to each operator of a gas
distribution system that is subject to the requirements of 49 CFR
Part 192. This section prescribes the minimum requirements by which
all operators will develop and implement a risk-based program for
the removal or replacement of distribution facilities, including steel
service lines, in such gas distribution systems. The risk-based program
will work in conjunction with the Distribution Integrity Management
Program (DIMP) using scheduled replacements to manage identified risks
associated with the integrity of distribution facilities.
(b) Each operator must make joints on below-ground
piping that meets the following requirements:
(1) Joints on steel pipe must be welded or designed
and installed to resist longitudinal pullout or thrust forces per
49 CFR §192.273.
(2) Joints on plastic pipe must be fused or designed
and installed to resist longitudinal pullout or thrust forces per
ASTM D2513-Category 1.
(c) Each operator must establish written procedures
for implementing the requirements of this section. Each operator must
develop a risk-based program to determine the relative risks and their
associated consequences within each pipeline system or segment. Each
operator that determines that steel service lines are the greatest
risk must conduct the steel service line leak repair analysis set
forth in subsection (d) of this section and use the prescriptive model
in subsection (f) of this section for the replacement of those steel
service lines.
(d) In developing its risk-based program, each operator
must develop a risk analysis using data collected under its DIMP and
the data submitted on the PS-95 to determine the risks associated
with each of the operator's distribution systems and establish its
own risk ranking for pipeline segments and facilities to determine
a prioritized schedule for service line or facility replacement. The
operator must support the analysis with data, collected to validate
system integrity, that allow for the identification of segments or
facilities within the system that have the highest relative risk ranking
or consequence in the event of a failure. The operator must identify
in its risk-based program the distribution piping, by segment, that
poses the greatest risk to the operation of the system. In addition,
each operator that determines that steel service lines are the greatest
risk must conduct a steel service line leak repair analysis to determine
the leak repair rate for steel service lines. The leak repair rate
for below-ground steel service lines is determined by dividing the
annualized number of below-ground leaks repaired on steel service
lines (excluding third-party leaks and leaks on steel service lines
removed or replaced under this section) by the total number of steel
service lines as reported on PHMSA Form F 7100.1-1, the Gas Distribution
System Annual Report. Each operator that determines that steel service
lines are the greatest risk must conduct the steel service line leak
repair analysis using the most recent three calendar years of data
reported to the Commission on Form PS-95.
(e) Each operator must create a risk model that will
identify by segment those lines that pose the highest risk ranking
or consequence of failure. The determination of risk is based on the
degree of hazard associated with the risk factors assigned to the
pipeline segments or facilities within each of the operator's distribution
systems. The priority of service line or facility replacement is determined
by classifying each pipeline segment or facility based on its degree
of hazard associated with each risk factor. Each operator must establish
its own risk ranking for pipeline segments or facilities to determine
the priority for necessary service line or facility replacements.
Each operator should include the following factors in developing its
risk analysis:
(1) pipe location, including proximity to buildings
or other structures and the type and use of the buildings and proximity
to areas of concentrations of people;
(2) composition and nature of the piping system, including
the age of the pipe, materials, type of facilities, operating pressures,
leak history records, prior leak grade repairs, and other studies;
(3) corrosion history of the pipeline, including known
areas of significant corrosion or areas where corrosive environments
are known to exist, cased crossings of roads, highways, railroads,
or other similar locations where there is susceptibility to unique
corrosive conditions;
(4) environmental factors that affect gas migration,
including conditions that could increase the potential for leakage
or cause leaking gas to migrate to an area where it could create a
hazard, such as extreme weather conditions or events (significant
amounts or extended periods of rainfall, extended periods of drought,
unusual or prolonged freezing weather, hurricanes, etc.); particular
soil conditions; unstable soil; or areas subject to earth movement,
subsidence, or extensive growth of tree roots around pipeline facilities
that can exert substantial longitudinal force on the pipe and nearby
joints; and
(5) any other condition known to the operator that
has significant potential to initiate a leak or to permit leaking
gas to migrate to an area where it could result in a hazard, including
construction activity near the pipeline, wall-to-wall pavement, trenchless
excavation activities (e.g., boring), blasting, large earth-moving
equipment, heavy traffic, increase in operating pressure, and other
similar activities or conditions.
(f) This subsection applies to operators that determine
under subsection (c) of this section that steel service lines are
the greatest risk. Based on the results of the steel service line
leak repair analysis under subsection (d) of this section, each operator
must categorize each segment and complete the removal and replacement
of steel service lines by segment according to the risk ranking established
pursuant to subsection (e) of this section as follows:
(1) a segment with an annualized steel service line
leak rate of 5% or greater but less than 7.5% is a Priority 1 segment
and an operator must remove or replace no less than 10% of the original
inventory per year; and
(2) a segment with an annualized steel service line
leak rate of less than 5% is a Priority 2 segment. An operator is
not required to remove or replace any Priority 2 segments; however,
upon discovery of a leak on a Priority 2 segment, the operator must
remove or replace rather than repair those lines except as outlined
in subsection (g) of this section.
(g) For those steel service lines that must remain
in service because of specific operational conditions or requirements,
each operator must determine if an integrity risk exists on the segment,
and if so, must replace the segment with steel as part of the integrity
management plan.
(h) All replacement programs require a minimum annual
replacement of 8% of the pipeline segments or facilities posing the
greatest risk in the system and identified for replacement pursuant
to this section. Each operator with steel service lines subject to
subsection (f) of this section must establish a schedule for the replacement
of steel service lines or other distribution facilities according
to the risk ranking established as part of the operator's risk-based
program and must submit the schedule to the Division for review and
approval or amendment under subsection (c) of this section.
(i) In conjunction with the filing of the pipeline
safety and regulatory program fee pursuant to §8.201 of this
title (relating to Pipeline Safety and Regulatory Program Fees) and
no later than March 15 of each year, each operator must file with
the Division:
(1) by System ID, a list of the steel service line
or other distribution facilities replaced during the prior calendar
year; and
(2) the operator's proposed work plan for removal or
replacement for the current calendar year, the implementation of which
is subject to review and amendment by the Division. Each operator
must notify the Division of any revisions to the proposed work plan
and, if requested, provide justification for such revision. Within
45 days after receipt of an operator's proposed revisions to its risk-based
plan and work plan, the Division will notify the operator either of
the acceptance of the risk-based program and work plan or of the necessary
modifications to the risk-based program and work plan.
(j) Each operator of a gas distribution system that
is subject to the requirements of §7.310 of this title (relating
to System of Accounts) may use the provisions of this subsection to
account for the investment and expense incurred by the operator to
comply with the requirements of this section.
(1) The operator may:
(A) establish one or more designated regulatory asset
accounts in which to record any expenses incurred by the operator
in connection with acquisition, installation, or operation (including
related depreciation) of facilities that are subject to the requirements
of this section;
Cont'd... |
