The Commission proposes amendments, in Subchapter A, to §8.1 and §8.5, relating to General Applicability and Standards; and Definitions; in Subchapter B, amendments to §8.101 and §8.115, and new §8.135, relating to Pipeline Integrity Assessment and Management Plans for Natural Gas and Hazardous Liquids Pipelines; New Construction Commencement Report; and Penalty Guidelines for Pipeline Safety Violations; in Subchapter C, amendments to §§8.203, 8.205, 8.210, 8.215, 8.225, 8.230, and 8.235, relating to Supplemental Regulations; Written Procedure for Handling Natural Gas Leak Complaints; Reports; Odorization of Gas; Plastic Pipe Requirements; School Piping Testing; and Natural Gas Pipelines Public Education and Liaison; and, in Subchapter D, amendments to §§8.301, 8.305, 8.310, and 8.315, relating to Required Records and Reporting; Corrosion Control Requirements; Hazardous Liquids and Carbon Dioxide Pipelines Public Education and Liaison; and Hazardous Liquids and Carbon Dioxide Pipelines or Pipeline Facilities Located Within 1,000 Feet of a Public School Building or Facility.

On October 9, 2007, the Commission approved the first publication of most of these rule proposals for comment. The notice was published in the October 26, 2007, issue of the Texas Register for a 30-day comment period. By the close of the comment period on November 26, 2007, the Commission had received substantive comments on many of the proposed changes. Comments were received from eight different parties, including six from individual companies and two from associations. Because the Commission agreed with some of the comments but could not incorporate them into the rules without another round of publication for comment, the Commission withdrew the proposal on December 18, 2007. Commission Safety Division staff conducted a public rulemaking workshop on January 8, 2008, to discuss the rule proposal and comments. The workshop proceedings can be found on the Commission's web page at www.rrc.state.tx.us/meetings-seminars/pubm.html and clicking on the Webcasts link or at the archived Commission meetings link at www.texasadmin.com/cgi-bin/txrail.cgi. The comments received during the November 2007 comment period and during the January 2008 workshop have been reviewed and considered in this new proposal.

The Commission proposes the amendments and new rule to update the adoption by reference of federal pipeline safety provisions and citations, to provide guidelines for filing required reports with the Commission, to address new risk management initiatives for the Commission's pipeline safety evaluation program, to address the regulation of pipelines and some production facilities in populated areas, and to remove outdated or duplicative rule requirements.

In §8.1(a)(1), the Commission proposes to remove the word "natural" in subparagraph (A) and to add new subparagraph (B) to address onshore pipeline and gathering and production facilities in designated Class 2, Class 3, and Class 4 locations. The Commission received comments concerning the proposed removal of the word "natural" in subparagraph (A), which originally was proposed to clarify that LPG distribution systems are also regulated under the safety rules. The new proposal would add LPG distribution systems as a separate type of facility as was done with master meter operators in that same subparagraph.

In §8.1(b), the Commission proposes to change the effective date from July 1, 2005, to August 25, 2008, to reflect a new date for the adoption by reference of federal pipeline safety statutes, and proposes new wording in paragraphs (3) and (4) to add references to 49 CFR Part 40 and to another Commission rule, 16 TAC §3.70, relating to Pipeline Permits Required.

The Commission proposes the amendments in §8.1(b) to update the minimum safety standards and to adopt by reference the United States Department of Transportation's (USDOT) pipeline safety standards found in 49 U.S.C. §§60101, et seq.; 49 Code of Federal Regulations (CFR) Part 191, Transportation of Natural and Other Gas by Pipeline; Annual Reports, Incident Reports, and Safety-Related Condition Reports; 49 CFR Part 192, Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards; 49 CFR Part 193, Liquefied Natural Gas Facilities: Federal Safety Standards; 49 U.S.C. §§60101, et seq.; 49 CFR Part 195, Transportation of Hazardous Liquids by Pipeline; and 49 CFR Part 199, Drug and Alcohol Testing. The current rule adopts the federal pipeline safety standards as of July 1, 2005; the proposed amendment will show this date as August 25, 2008. The federal safety rule amendments that will be captured are summarized in the following paragraphs.

USDOT's Amendment No. 192-101(102) and 195-85(86), published at 70 Federal Register (FR) 61571, addressed current regulations governing integrity management of gas transmission lines where an operator using direct assessment to evaluate corrosion risks must carry out the direct assessment according to PHMSA standards. In response to a statutory directive, the final rule prescribes similar standards operators must meet when they use direct assessment on certain other onshore gas, hazardous liquid, and carbon dioxide pipelines. PHMSA stated that broader application of direct assessment standards will enhance public confidence in the use of direct assessment to assure pipeline safety. The final rule took effect November 25, 2005.

USDOT's Amendment No. 192-102, published at 71 FR 13289, adopted a consensus standard to distinguish onshore gathering lines from other gas pipelines and from production operations. In addition, it established safety rules for certain onshore gathering lines in rural areas and revised current rules for certain onshore gathering lines in nonrural areas. Operators will use a new risk-based approach to determine which onshore gathering lines are subject to PHMSA's gas pipeline safety rules and which of these rules the lines must meet. PHMSA intended the action to reduce disagreements over classifications of onshore gathering lines, increase public confidence in the safety of onshore gathering lines, and provide safety rules consistent with the risks of onshore gathering lines. The final rule took effect April 14, 2006.

Amendment Nos. 192-103, 193-19, and 195-86, published at 71 FR 33402, updated the pipeline safety regulations to incorporate by reference all or parts of new editions of voluntary consensus technical standards to enable pipeline operators to utilize current technology, materials, and practices. The final rule took effect July 10, 2006.

Docket OST-2007-26828, published at 72 FR 1298, was an interim final rule regarding the National Highway Transportation Safety Administration's (NHTSA's) recently approved new breath tube alcohol screening device which will qualify for use in DOT agency-regulated testing once it appears on NHTSA's conforming products list. The interim final rule will provide procedure for use of the new device and remove procedures for a previously approved breath tube alcohol screening device which is no longer being manufactured. The interim final rule took effect January 11, 2007.

Amendment Nos. 192-103 and 195-86, published at 72 FR 4655, addressed PHMSA's amendment of a final rule published in the Federal Register on June 9, 2006, which updated the pipeline safety regulations to incorporate by reference all or parts of new editions of voluntary consensus technical standards to enable pipeline operators to utilize current technology, materials, and practices. The final rule took effect March 5, 2007.

Docket No. PHMSA-2005-22642, published at 72 FR 20055, concerned a final rule requiring operators to use design and construction features in new and replaced gas transmission pipelines to reduce the risk of internal corrosion. The design and construction features required by the rule will reduce the risk of internal corrosion and related pipeline failures by reducing the potential for accumulation of liquids and facilitating operation and maintenance practices that address internal corrosion. The final rule took effect May 23, 2007.

Amendment Nos. 192-104 and 195-87, published at 72 FR 39012, modified the integrity management regulations for hazardous liquid and natural gas transmission pipelines. The modifications included adding an eight-month window to the period for reassessing hazardous liquid pipelines; modifying notification requirements for operators of hazardous liquid and natural gas pipelines; repealing a requirement for gas operators to notify local authorities; and allowing alternatives in calculating pressure reduction when making an immediate repair on a hazardous liquid pipeline. The action was intended to improve pipeline safety by clarifying the integrity management regulations and providing operators with increased flexibility in implementing their integrity management programs. The final rule was effective August 16, 2007.

Federal Register Docket No. 07-55511, published at 72 FR 54600, contained a correction in the heading in 49 CFR Part 40.209. In PHMSA Docket 2003-15852, published at 72 FR 70808, the rules for public awareness were relaxed for master meter operators and operators of small LPG distribution systems, effective January 14, 2008. These operators typically manage property and incidentally provide gas service to customers located on the property. The change provided a less burdensome means for the operators to comply with the public education and awareness programs.

Docket No. PHMSA-2007-0033, published at 73 FR 16562, conformed PHMSA's administrative procedures with the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 (PIPES Act) by establishing the procedures PHMSA will follow in issuing safety orders and handling requests for special permits, including emergency special permits. The interim final rule also notified operators about electronic docket information availability; updated addresses, telephone numbers, and routing symbols; and clarified the time period for processing requests for written interpretations of the regulations. The interim final rule did not impose any new operating, maintenance, or other substantive requirements on pipeline owners or operators. The interim final rule was effective April 28, 2008.

Docket OST-2008-0184, published at 73 FR 33735, amended the drug and alcohol testing procedures to authorize employers to disclose to State commercial driver licensing (CDL) authorities the drug and alcohol violations of employees who hold CDLs and operate commercial motor vehicles (CMVs), when a State law requires such reporting. The rule also permitted third-party administrators (TPAs) to provide the same information to State CDL licensing authorities where State law requires the TPAs to do so for owner-operator CMV drivers with CDLs. The interim final rule was effective June 13, 2008.

Docket ID PHMSA-RSPA-2003-15875, published a 73 FR 31634, amended the pipeline safety regulations to extend added protection to certain environmentally sensitive areas that could be damaged by failure of a rural onshore hazardous liquid gathering line or low-stress pipeline. Building on PHMSA's existing regulatory framework, the rule was intended to protect designated "unusually sensitive areas" (USAs), which are locations requiring extra protection because of the presence of sole-source drinking water, endangered species, or other ecological resources. The rule defined "regulated rural onshore hazardous liquid gathering lines" and required operators of these lines to comply with safety requirements that address the most common threats to the integrity of these pipelines: corrosion and third-party damage. In accordance with the PIPES Act of 2006, the rule also significantly narrowed the regulatory exception for rural onshore low-stress hazardous liquid pipelines by extending all existing safety regulations, including integrity management requirements, to large-diameter low-stress pipelines within a defined "buffer" area around a USA. The final rule required operators of these, and all other low-stress pipelines, to comply with annual reporting requirements, furnishing data needed for further rulemaking required by the PIPES Act. The final rule was effective July 3, 2008.

Docket No. OST-2003-15245, published at 73 FR 35961, amends certain provisions of USDOT's drug and alcohol testing procedures to change instructions to collectors, laboratories, medical review officers, and employers regarding adulterated, substituted, diluted, and invalid urine specimen results. These changes are intended to create consistency with specimen validity requirements established by the U.S. Department of Health and Human Services, and to clarify and integrate some measures taken in two interim final rules. The final rule makes specimen validity testing mandatory within the regulated transportation industries. The final rule was effective August 25, 2008.

The Commission proposes new §8.1(g) relating to compliance deadlines to establish the time by which operators must comply with pipeline safety requirements. One purpose of the new subsection is to clarify that operators of a pipeline and/or pipeline facility that is new, replaced, relocated, or otherwise changed must ensure compliance with the applicable requirements of this section at the time the pipeline and/or pipeline facility goes into service. However, the main purpose of the new subsection, as proposed in paragraph (2), is to assist those operators whose pipeline or pipeline facilities have become newly subject to regulation as a result of the changed definition in 49 CFR Part 192 by stating clearly the deadline by which their facilities must be in compliance with the various requirements of 49 CFR Part 192. An operator whose pipeline and/or pipeline facility was not previously regulated but has become subject to regulation pursuant to the changed definition in 49 CFR Part 192 and §8.1(a)(1)(B) must comply with the applicable requirements no later than the stated time period, all of which run from the effective date of the subsection. The different time periods are specified to allow operators enough time to comply with the new requirements, based on the type of changes they would need to make to ensure compliance. Upon adoption of this rule, the Commission will state the exact dates for compliance, as calculated based on the effective date of the adoption.

Proposed amendments in §8.5 add a reference to 49 CFR Part 40, clarify the definitions of "master metered system" and "pressure test" in paragraphs (18) and (24), respectively, and add a reference to onshore pipeline, gathering, and production facilities to the definition of "transportation of gas" in paragraph (28). To address the concerns raised during the workshop regarding the definition of the gathering and regulated production facilities, the Commission proposes a revised definition of the term "transportation of gas" which includes a reference to the definition of "first point of measurement" that is found in 49 CFR Part 192.

In §8.101(b), the Commission proposes to remove the word "gathering" from the description of intrastate transmission lines and from the title of Table 1 in subsection (b)(2).

The Commission proposes new wording in §8.115 to add a reference to Form PS-48 and to describe requirements for new construction reports.

The Commission proposes new §8.135 to move the penalty guidelines for pipeline safety violations from Subchapter C, which applies to requirements for natural gas pipelines only, to Subchapter B, so that the guidelines will apply to all pipelines. The text of the rule is the same as §8.245, which is proposed for repeal in a concurrent rulemaking, but Tables 1 and 5 have been amended to include references to the rules pertaining to hazardous liquids and carbon dioxide pipelines and pipeline facilities. These changes will mean that penalty provisions for violations of the federal and Commission rules for all pipelines and specific provisions for operator qualification and integrity management for both natural gas and liquids pipelines will be included in the rule.

In §8.203, the Commission proposes to update references to federal statutes that have been changed and with which operators already must comply.

The Commission proposes clarifying wording in §8.205 to state that supervisory review of leak complaints must be completed and documented by 10:00 a.m. each day for calls received by midnight on the previous day.

In §8.210(a)(1), the Commission proposes to add a reference to 49 CFR Part 191.3 and to delete some specific wording in subparagraphs (A) - (E) and paragraph (2) that is now covered by Part 191.3. In paragraph (3), proposed to be renumbered to paragraph (2), the Commission proposes to add new subparagraphs (F) and (G) to require including the telephone number of the operator's on-site person, and estimated property damage, including the cost of gas lost, to the operator, others, or both. In subparagraph (H) (currently designated as (F)), the Commission proposes new wording to state that ignition, explosion, rerouting of traffic, evacuation of any building, and media interest are considered significant facts that must be reported. In paragraph (3) (currently designated as (4)), the Commission proposes to add a reference to 49 CFR Part 191 and to add new wording to describe Department of Transportation reports.

Section 8.210(b)(1) includes a proposed addition of the word "intrastate" for systems which must file pipeline safety annual reports, and the remainder of this paragraph is proposed to be reworded to conform to the Department of Transportation reporting requirements.

The Commission proposes new subsection (e) to require natural gas operators to submit on a semi-annual basis information regarding the number of repaired leaks on their pipeline systems as well as the number of leaks remaining unrepaired. Each operator will be required to submit a listing of repaired leaks on proposed new Form PS-95 that describes the leak and the method of repair. The Form PS-95 report will also require reporting of information for the leaks on the system yet to be repaired, organized by leak grade. This proposed new form incorporates the information required on the Plastic Pipe Failure Report, PS-80, and therefore the Commission also proposes to delete §8.225(a), as discussed below. The Form PS-95 reports will be submitted electronically into the Commission's Pipeline Safety Integrity system on June 30 and December 31 of each calendar year.