10 PROPOSED ADMINISTRATIVE RULES

 

SOAHR 2008-021

 

DEPARTMENT OF LABOR AND ECONOMIC GROWTH PUBLIC SERVICE COMMISSION

GAS SAFETY

 

These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

 

(By authority conferred on the public service commission by section 2 of 1969 PA 165, MCL 483.152)

 

Draft August 27, 2008

 

R 460.20320 and R 460.20321 of the Michigan Administrative Code are rescinded, and R 460.20101, 460.20302, 460.20304, 460.20309, 460.20326, 460.20402, 460.20405, 460.20407, 460.20408,

460.20425, 460.20430, 460.20602, 460.20604, 460.20605, and 460.20606 of the Code are amended as

follows:

 

R 460.20101  Applicability of rules.

Rule 101. (1) These rules apply to the design, fabrication, installation, inspection, testing, and safety aspects of the operation and maintenance of gas pipeline facilities used in the transportation of gas.

(2)   These rules do not apply to either of the following:

(a)    The onshore gathering of gas under either of the following conditions in rural locations that are outside of any of the following areas:

(i)    Through a pipeline that operates at less than 0 psigAn area within the limits of an incorporated  or unincorporated city, town, or village.

(ii)    Through a pipeline that is not a regulated onshore gathering line as determined by 49 C.F.R.

§ 192.8A designated residential or commercial area, such as a subdivision, business or shopping center,  or community development.

(iii)  The property of a school, church, hospital, park, or similar public place.

(b)    Any pipeline system that transports only petroleum gas or petroleum gas and air mixtures under either of the following circumstances:

(i)    The pipeline has fewer than 10 customers and no portion of the system is located in a public place.

(ii)    The pipeline has only 1 customer and the system is located entirely on the customer’s premises.

(3)   The work performed within the scope of these rules shall meet or exceed all of the safety standards expressed or implied in these rules.

 

R 460.20302  Compressor station piping.

Rule 302. (1) An operator shall install and test gas piping, other than instrument, control, and sample piping, in accordance with these rules.

(2)     An operator shall identify all emergency valves and controls by signs. An operator shall identify important gas pressure piping by signs or color coding to indicate its function.

 

 

(3)     An operator shall ensure that fuel gas lines within a compressor station conform to both of the following provisions:

(a)      Are provided with master shutoff valves located outside of a building or residential area.

(b)      Are equipped with pressure-limiting devices to prevent the maximum allowable operating pressure from being exceeded by more than 10%.

(4)     An operator shall equip the air piping within a compressor station that is part of an air starter with a check valve in the starting air line near each engine to prevent backflow from the engine into the air piping system. An operator shall also place a similar check valve in the main air line on the immediate outlet side of the air tank or tanks. An operator shall install equipment for cooling the air and removing the moisture and entrained oil between the starting air compressor and the air storage tank.

 

R 460.20304  Welding procedures.

Rule 304. In addition to the requirements contained in 49 C.F.R. §192.225, which is adopted by reference in R 460.20606, an operator shall ensure that a welding procedure meets allboth of the following requirements:

(a)      Is qualified under either section IX of the ASME boiler and pressure vessel code, which is adopted by reference in R 460.20604, or section 25 of API standard 1104, which is adopted by reference in         R 460.20603, whichever is appropriate to the function of the weld. A welding procedure that qualified under an earlier edition of section IX of the ASME boiler and pressure vessel code or section 2 of API  standard 1104 previously listed in appendix A of R 460.14904 or appendix A of 49 C.F.R. §192 may  continue to be used, but shall not be requalified under the earlier edition.

(b)      Is qualified under appendix B of API standard 1104, which is adopted by reference in R 460.20603.

(c) A copy of the welding procedure being followed is on the jobsite when welding is performed.

 

R 460.20309  Service lines; valve location.

Rule 309. (1) In addition to the requirements contained in 49 C.F.R. §192.365, which is adopted by reference in R 460.20606, an operator shall ensure that service lines are equipped with a valve located on the service line outside the building if any of the following provisions apply:

(a)      The service line operates at a pressure of more than 10 psig.

(b)      The service line is 2 inches or larger in diameter.

(c)      The service line supplies any of the following:

(i)    A hospital.

(ii)    A church.

(iii)    A theater.

(iv)    A school.

(v)    A building of public assemblage similar to the buildings listed in paragraphs (i) to (iv) of this subdivision.

(vi)    A commercial or industrial building.

(vii)     A dwelling that houses more than 4 families.

(2)     An operator shall ensure that an outside valve required by subrule (1) of this rule is located aboveground in an accessible place, if feasible. If an aboveground location is not feasible, then the operator shall ensure thatestablish a curb valve or other remote valve is installed.

(3)     If a curb valve is installed, then the operator shall establish a planned procedure which permits accurately locating the service line valve within a reasonable period of time when the service line valve is not plainly visible at the surface of the ground during all periods of the year.

 

 

 

R 460.20320  Damage prevention program; public notification. Rescinded.

    Rule 320. (1) In addition to the requirements contained in 49 C.F.R. §192.614, which is adopted by  reference in R 460.20606, the damage prevention program required by the provisions of 49 C.F.R.

§192.614(a) shall include notification to the public in the vicinity of the pipeline and actual notification to the persons identified in 49 C.F.R. §192.614(c)(1) of the actions to be taken if the pipeline is hit, even if there is no apparent damage to the pipeline.

     (2) An operator shall give the notification required by subrule (1) of this rule as often as needed to make the persons required to be notified aware of the damage prevention program, but at least once each calendar year at intervals of not more than 15 months. An operator shall retain copies of the 2 most recent notifications sent to excavators.

 

R 460.20321 Education programs; notification; periodic review. Rescinded.

    Rule 321. (1) In addition to the requirements contained in 49 C.F.R. §192.616, which is adopted by  reference in R 460.20606, an education program shall provide for notification of the entities listed in 49 C.F.R. §192.616 according to the following schedule:

    (a) Appropriate government organizations and persons in excavation activities shall be notified at least annually.

    (b) The public in the vicinity of a transmission line shall be notified at least annually.

    (c) Customers shall be notified at least annually.

    (2) An education program conducted by an operator shall communicate all of the following general information:

    (a) Facts about the gas distributed or transported.

    (b) The importance of recognizing and reporting a gas emergency.

    (c) How to report an emergency to the operator.

    (d) What action to take in an emergency or when gas leaks are detected.

    (e) How to identify a pipeline marker.

    (3) An operator shall periodically review the continuing education program to determine the appropriateness of the information provided and the effectiveness of the techniques used.

 

R 460.20326  Transmission lines; permanent field repair of leaks.

Rule 326.  (1) In accordance with the requirements contained in 49 C.F.R. §192.717(ba)(3), which is adopted by reference in R 460.20606, an operator shall repair a leak that is due to a corrosion pit or that occurs in a transmission line that is joined by mechanical couplings and that operates at less than 40% of the specified minimum yield strength of the pipeline through any of the following procedures:

(a)      The methodology set forth in 49 C.F.R. § 192.717(a)(1).

(b)      The methodology set forth in 49 C.F.R. § 192.717(b)(1)(a)(2).

(c)      The methodology set forth in 49 C.F.R. § 192.717(b)(2).Installation of a properly designed leak clamp.

(2) An operator shall not repair a leak described in subrule (1)subsection 1 of this rule through use of a fillet welded patch.

 

 

R 460.20402 Materials for pipe and components; requirements.

Rule 402. In addition to the requirements set forth in 49 C.F.R. §192.555, which is adopted by reference in R460.20606, metallic materials for pipe and other components used to transport sour gas shall meet the requirements set forth in the national association of corrosion engineers international standard NACE MR0175-2002, parts 1-3, 2001-2005, which areis adopted by reference in R 460.20605.

 

R 460.20405  Valves; qualification for sour gas service.

Rule 405. An operator shall ensure that valves to be used for sour gas service are qualified for sour gas service in accordance with the provisions of the national association of corrosion engineers international standard MR0175-2002, parts 1-3, 2001-2005, which areis adopted by reference in

R 460.20605.

 

R 460.20407 Sectionalizing block valves.

Rule 407. In addition to the requirements set forth in 49 C.F.R. §192.179, which is adopted by reference in R 460.20606, an operator of pipeline facilities used in the transportation of sour gas shall comply with all of the following requirements for any portion of the pipeline that contains more that 10 pounds of H2S per mile, with the weight calculated according to the formula W=0.0933 (P) (V) (MW)

(H)  /T, where W=Weight of H2S in pounds per mile of pipe, P=Absolute pressure in pounds per square inch, V=Volume of one mile of pipe in cubic feet, mw=Molecular weight of natural gas, H=Percentage of H2S in the gas, and T=Temperature in degrees Rankinerankline:

(a)      Sectionalizing block valves shall be installed and located so that each point on the pipeline is within 3 miles of a sectionalizing block valve with a block valve located at each end of the pipeline.

(b)      A pipeline shall incorporate block valve automation so that block valves will automatically close upon the registering of low pressure readings. The system shall be designed to operate even in the event of a power failure or malfunction of electronic devices and shall be designed to fail in a closed position.

(c)      A pipeline shall incorporate a supervisory control and data acquisitions (SCADA) system that

complies is in compliance with all of the following provisions:

(i)      Is monitored by the operator to ensure appropriate response to emergencies.

(ii)      Is programmed to automatically close block valves based on operating data gathered at each metering site and at each automated block valve.

(iii)      Automatically closes the upstream and downstream sectionalizing block valves surrounding any sectionalizing block valve that is in an alarm condition.

(iv)      Allows the operator monitoring the SCADA system to close, but not open, any or all of the block valves and metering points.

(d)      H2S sensors shall be located at all sectionalizing block valve sites. The sensors shall provide a warning to the SCADA system at H2S levels of 10 ppm and shall close the block valve at H2S levels of 30 ppm.

(e)      Control valves shall be installed at appropriate locations at well sites or laterals to automatically shut off the flow of gas into the pipeline in the event of a line break of over pressure conditions.

 

R 460.20408 Qualification of welding procedures.

Rule 408. In addition to the requirements set forth in 49 C.F.R. §192.225, which is adopted by reference in R 460.20606, an operator of pipeline facilities used in the transportation of sour gas shall use welding procedures that conform to the welding provisions of the national association of corrosion engineers international standard NACE MR0175-2002, parts 1-3, 2001-2005, which areis adopted by reference in R 460.20605.

 

 

 

R 460.20425 Sour gas pipeline patrolling.

Rule 425. In addition to the requirements set forth in 49 C.F.R. §192.705, which is adopted by reference in R 460.20606, an operator of pipeline facilities used in the transportation of sour gas shall, at intervals of not more than 6 weeks, but not less than 12 times each calendar year, patrol all pipelines that are used in the transportation of sour gas.

 

R 460.20430 Inspection of pressure ?limiting and pressure ?regulating stations.

Rule 430. In addition to the requirements set forth in 49 C.F.R. §192.739, which is adopted by reference in R 460.20606, an operator of pipeline facilities used in the transportation of sour gas shall inspect all pressure ?limiting and pressure ?regulating devices at intervals of not more than 7 ½ months, but not less than twice each calendar year.

 

R 460.20602  Names, addresses, and phone numbers of organizations.

Rule 602. The names, addresses, and phone numbers of organizations that sponsor or publish documents that have been adopted by reference in these rules are as follows:

(a)      American Petroleum Institute (API), 1220 L Street, NW, Washington, DC 20005, ((202) 682- 8000).

(b)      American Society of Mechanical Engineers (ASME), Three Park Avenue, New York, New York, 10016-5990, ([phone]) or ([phone]), or contact its publishing division, 22 Law Drive, P.O. Box 2900, Fairfield, New Jersey, 07007, ([phone]).

(c)    National Association of Corrosion Engineers International (NACE), 1400 South Creek Drive, Houston, Texas 77084-4906, ([phone]) or ([phone]).

(d)      U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration (PHMSA), East Building, 2nd Floor, 1200 New Jersey Ave., SE, Washington, D.C., 20590, ([phone]). Office of Pipeline Safety, Research and Special Programs Administration  (OPS), 400 Seventh Street SW, Washington, DC 20590, ([phone]). To order a standard published in the Code of Federal Regulations (C.F.R.), contact the Government Printing Office, Superintendent of Documents, Attention: New Orders, P.O. Box 371954, Pittsburgh, PA 15250-7954, ([phone]), or visit the website at bookstore.gpo.gov.

 

R 460.20603 American petroleum institute standard; adoption by reference.

Rule 603. The following American petroleum institute standard is adopted by reference in these rules and is available at the price listed:

API standard 1104 entitled “Welding of Pipelines and Related Facilities,” (19th edition, 1999,

including errata dated October 31, 2001), at a cost as of the time of adoption of these rules of

$188.00.

 

R 460.20604 American society of mechanical engineers standard; adoption by reference.

Rule 604. The following American society of mechanical engineers standard is adopted by reference in these rules and is available at the price listed:

ASME boiler and pressure code, section IX, entitled “Welding and Brazing Qualifications,” (20041 edition, including addenda through July 1, 2005), at a cost as of the time of adoption of these rules of

$440295.00.

 

 

R 460.20605  National association of corrosion engineers international standard; adoption by reference.

Rule 605. The following national association of corrosion engineers international standard is adopted by reference in these rules and is available at the price listed:

NACE MR0175-2002, parts 1-3, 2001-2005, entitled “Petroleum and natural gas industries – materials for use in H2S-containing environments in oil and gas production”"Sulfide Stress Cracking Resistant Material for Oilfield Equipment,” (2002 edition), at a cost as of the time of adoption of these rules of $242.0065.00 or, if a member, $57.00.

 

R 460.20606 Pipeline and hazardous materials safety administration standards; adoption by reference.

Rule 606. (1) The following pipeline and hazardous materials safety administration standard is adopted by reference in these rules and may be ordered from the Government Publishing Office via the internet at bookstore.gpo.gov at a cost at the time of adoption of these rules at the price listed. The standard is also available for public inspection and distribution at the price listed from the Michigan Public Service Commission, 6545 Mercantile Way, Lansing, Michigan 48909-7721:

49 C.F.R. part 40 entitled “Procedures for Transportation Workplace Drug and Alcohol Testing Programs,” (2007 2004 edition), at a cost as of the time of adoption of these rules of $60.00.

(a)      49 C.F.R. part 191 entitled “Transportation of Natural and Other Gas by Pipeline: Annual Reports, Incident Reports, and Safety-related Condition Reports,” (20075 edition).

(b)      49 C.F.R. part 192 entitled “Transportation of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards,”(20075 edition).

(c)      49 C.F.R. part 199 entitled “Drug and Alcohol Testing,” (20075 edition).