The Railroad Commission of Texas (Commission) adopts amendments to §§8.1, 8.5, 8.101, 8.130, 8.201, 8.235, 8.310, and 8.315, relating to General Applicability and Standards; Definitions; Pipeline Integrity Assessment and Management Plans for Natural Gas and Hazardous Liquids Pipelines; Enforcement; Pipeline Safety Program Fees; Natural Gas Pipelines Public Education and Liaison; 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, without changes to the versions published in the June 25, 2010, issue of the Texas Register (35 TexReg 5424). The amendments update federal provisions and citations, correct the name of the Safety Division to Pipeline Safety Division, and conform the rules to the statutory changes regarding community liaison activities enacted by House Bill 4300, 81st Legislative Session (Regular Session, 2009).

The Commission adopts 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 August 25, 2008; the adopted amendment changes this date to February 12, 2010. The federal safety rule amendments captured are summarized in the following paragraphs.

Docket No. PHMSA-2005-23447, published at 73 FR 62148, prescribed safety requirements for the operation of certain gas transmission pipelines at pressures based on higher operating stress levels. The result is an increase of maximum allowable operating pressure (MAOP) over that currently allowed in the regulations. Improvements in pipeline technology assessment methodology, maintenance practices, and management processes over the past 25 years have significantly reduced the risk of failure in pipelines and necessitate updating the standards that govern the MAOP. The rule will generate significant public benefits by reducing the number and consequences of potential incidents and boosting the potential capacity and efficiency of pipeline infrastructure, while promoting rigorous life-cycle maintenance and investment in improved pipe technology. The final rule was scheduled to take effect November 17, 2008. However, a stay of the final rule, published at 73 FR 72737, changed the effective date to December 22, 2008, which was 60 days after the final rule was transmitted to Congress.

Docket No. PHMSA-2005-21305, published at 73 FR 79002, amended the design factor and design pressure limits for natural gas pipelines made from new Polyamide-11 (PA-11) thermoplastic pipe. These two changes in the regulations allow pipeline operators to operate certain pipelines constructed of new PA-11 pipe at higher operating pressures than is currently allowed for other plastic pipe materials. The final rule took effect January 23, 2009.

Docket No. PHMSA-2007-0033, published at 74 FR 2889, adopted with minor modifications an interim final rule issued by PHMSA on March 28, 2008, conforming PHMSA's administrative procedures with the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 by establishing the procedures PHMSA will follow for issuing safety orders and handling requests for special permits, including emergency special permits. The rule notifies operators about electronic docket information availability; updates addresses for filing reports, telephone numbers, and routing symbols; and clarifies the time period for processing requests for written interpretations of the regulations. The final rule makes minor amendments and technical corrections to the regulatory text in response to written public comments received after issuance of the interim final rule. The final rule took effect February 17, 2009.

Docket No. PHMSA-2008-0334, published at 74 FR 17099, incorporated by reference the most recent editions of API Specification 5L "Specification for Line Pipe" and API 1104 "Welding of Pipelines and Related Facilities." The purpose of this update is to enable pipeline operators to utilize current technology, materials, and practices to help maintain a high level of safety relative to their pipeline operations. PHMSA is not eliminating the use of the current referenced standards but simply allowing the additional use of these new standards. PHMSA may in the future propose to eliminate the incorporation of the existing referenced standards. The rule took effect April 14, 2009.

Docket No. PHMSA-2009-0265, Amendment Nos. 190-15, 192-111, 195-92, and 198-5, published at 74 FR 62503, corrected editorial errors, made minor changes in the regulatory text, reflected changes in governing laws, and clarified certain provisions in the pipeline safety regulations. The rule was intended to enhance the accuracy and reduce misunderstandings of the specified regulations. The amendments contained in the rule are non-substantive. The effective date of the final rule was January 29, 2010.

Docket No. PHMSA-2007-27954, Amendment Nos. 192-112 and 195-93, published at 74 FR 63310, addressed human factors and other aspects of control room management for pipelines where controllers use supervisory control and data acquisition (SCADA) systems. Affected pipeline operators must define the roles and responsibilities of controllers and provide controllers with the necessary information, training, and processes to fulfill these responsibilities. Operators must also implement methods to prevent controller fatigue. The final rule further requires operators to manage SCADA alarms, assure control room considerations are taken into account when changing pipeline equipment or configurations, and review reportable incidents or accidents to determine whether control room actions contributed to the event. Hazardous liquid and gas pipelines are often monitored in a control room by controllers using computer-based equipment, such as a SCADA system, that records and displays operational information about the pipeline system, such as pressures, flow rates, and valve positions. Some SCADA systems are used by controllers to operate pipeline equipment, while, in other cases, controllers may dispatch other personnel to operate equipment in the field. These monitoring and control actions, whether via SCADA system commands or direction to field personnel, are a principal means of managing pipeline operations. The rule improves the opportunities to reduce risk through more effective control of pipelines and further requires the statutorily mandated human factors management. The regulations will enhance pipeline safety by coupling strengthened control room management with improved controller training and fatigue management. The effective date of the final rule was February 1, 2010. However, at 75 FR 5536, PHMSA made corrections regarding certain dates, both in the preamble and in the amendments. The effective date of the corrections was February 1, 2010.

Docket No. PHMSA-RSPA-2004-19854, Amendment 192-113, published at 74 FR 63906, requires operators of gas distribution pipelines to develop and implement integrity management (IM) programs to enhance safety by identifying and reducing pipeline integrity risks. The IM programs required by this rule are similar to those required for gas transmission pipelines, but tailored to reflect the differences in and among distribution pipelines. Based on the required risk assessments and enhanced controls, the rule also allows for risk-based adjustment of prescribed intervals for leak detection surveys and other fixed-interval requirements in the agency's existing regulations for gas distribution pipelines. To further minimize regulatory burdens, the rule establishes simpler requirements for master meter and small liquefied petroleum gas operators, reflecting the relatively lower risk of these small pipelines. The rule also requires operators to install excess flow valves on new and replaced residential service lines, subject to feasibility criteria outlined in the rule. The final rule addressed statutory mandates and recommendations from the USDOT's Office of the Inspector General and stakeholder groups. The final rule took effect February 2, 2010. Following that action, PHMSA corrected the effective date of the final rule and made a minor correction in terminology, published at 75 FR 5244. The revised effective date was February 12, 2010.

The adopted amendments in §8.235 and §8.310 conform these rules to the revised wording enacted in Texas Utilities Code, §121.2015(c) and (d), and in Texas Natural Resources Code, §117.012(i) and (j) by House Bill 4300 regarding the process by which the operators of natural gas, hazardous liquids, and carbon dioxide pipelines conduct community liaison activities with fire, police, and other appropriate public emergency response officials. The liaison activities must be conducted in person, except as provided by statute. The revised statutory language permits pipeline operators to dispense with having to make multiple efforts to conduct face-to-face meetings; if a pipeline operator is unable to arrange a meeting in person, the operator may conduct liaison activities either by telephone conference call or by delivering liaison information by certified mail, return receipt requested. The adopted amendments in §8.235 and §8.310 mirror the statutory wording.

The remaining amendments merely correct the name of the Pipeline Safety Division.

The Commission received one jointly-filed comment from the Texas Pipeline Association (TPA), the Texas Pipeline Safety Coalition (TPSC), and the Texas Oil and Gas Association (TxOGA) in support of the proposed amendments. The commenters state that the proposed changes will assist in aligning the Texas requirements for liaison activities with those of the Pipeline Hazardous Materials and Safety Administration (PHMSA) by providing for a specific and streamlined process to contact and exchange important information with emergency responders. The amendments will give operators clear direction as to the process that must be followed when setting up liaison activities, documenting attempted contacts, and ensuring that if an operator is unable to meet with emergency responders, a meeting may occur over the phone or information provided via certified mail.

The Commission appreciates the comments from TPA, TPSC, and TxOGA.

The Commission adopts the amendments under Texas Natural Resources Code, §81.051 and §81.052, which give the Commission jurisdiction over all common carrier pipelines in Texas, persons owning or operating pipelines in Texas, and their pipelines and oil and gas wells, and authorize the Commission to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission as set forth in §81.051, including such rules as the Commission may consider necessary and appropriate to implement state responsibility under any federal law or rules governing such persons and their operations; Texas Natural Resources Code, §§117.001 - 117.101, as amended by House Bill 4300, 81st Legislative Session (Regular Session, 2009), which give the Commission jurisdiction over all pipeline transportation of hazardous liquids or carbon dioxide and over all hazardous liquid or carbon dioxide pipeline facilities as provided by 49 U.S.C. Section 60101, et seq.; and Texas Utilities Code, §§121.201-121.210, as amended by House Bill 4300, 81st Legislative Session (Regular Session, 2009), which authorize the Commission to adopt safety standards and practices applicable to the transportation of gas and to associated pipeline facilities within Texas to the maximum degree permissible under, and to take any other requisite action in accordance with, 49 United States Code Annotated, §§60101, et seq.

Texas Natural Resources Code, §81.051, §81.052, and §§117.001 - 117.101, as amended by House Bill 4300, 81st Legislative Session (Regular Session, 2009); Texas Utilities Code, §§121.201 - 121.211, as amended by House Bill 4300, 81st Legislative Session (Regular Session, 2009); §121.251 and §121.253, §§121.5005 - 121.507; and 49 United States Code Annotated, §§60101, et seq., are affected by the adopted amendments.

Statutory authority: Texas Natural Resources Code, §81.051, §81.052, and §§117.001 - 117.101, as amended by House Bill 4300, 81st Legislative Session (Regular Session, 2009); Texas Utilities Code, §§121.201 - 121.211, as amended by House Bill 4300, 81st Legislative Session (Regular Session, 2009); §121.251 and §121.253, §§121.5005 - 121.507; and 49 United States Code Annotated, §§60101, et seq.

Cross-reference to statute: Texas Natural Resources Code, Chapter 81 and Chapter 117; Texas Utilities Code, Chapter 121; and 49 United States Code Annotated, Chapter 601.

Issued in Austin, Texas, on August 10, 2010.