Interpretation Response #PI-19-0012
Below is the interpretation response detail and a list of regulations sections applicable to this response.
Interpretation Response Details
Response Publish Date:
Company Name: Maverick
Individual Name: Mr. Don Barkley
Location State: CA Country: US
View the Interpretation Document
Response text:
Mr. Don Barkley
HSE Advisor III
Maverick
10350 Heritage Park Drive
Suite 201
Santa Fe Springs, CA 90670
Dear Mr. Barkley:
In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated June 21, 2019, you requested an interpretation of 49 Code of Federal Regulations (CFR) Part 195. You specifically requested an interpretation regarding the applicability of § 195.0 to a Santa Fe Springs crude oil shipping pipeline (Santa Fe Springs pipeline).
You described the Santa Fe Springs pipeline as an underground and aboveground intrastate pipeline which was installed in 2014. You stated that the pipeline transports crude oil from the Santa Fe Springs tank farm and connects to the Crimson pipeline (0.44 miles) away. You stated the Crimson pipeline then transports the crude oil to a refinery within the state of California. In addition, the Santa Fe Springs pipeline has a specified minimum yield strength (SMYS) of 30,000 pounds per square inch (psi), and a maximum operating pressure of 375 psi.
You stated that you requested the California Office of the State Fire Marshal (OSFM) to determine whether the Santa Fe Springs pipeline is a low-stress, intrastate pipeline and whether it is regulated under 49 CFR Part 195. You stated that OSFM determined the pipeline is a low stress intrastate pipeline and regulated under Part 195.
You asked for PHMSA's interpretation of whether this intrastate pipeline is regulated by the Federal pipeline safety regulations since the pipeline is not "in or affecting interstate or foreign commerce" within the scope of Part 195.
PHMSA agrees with the OSFM interpretation that the Santa Fe Springs pipeline is regulated under § 195.1(a)(3) as any pipeline located in a rural or non-rural area of any diameter regardless of operating pressure. Pursuant to its authority under the Pipeline Safety Act, 49 U.S.C. chapter 601, PHMSA establishes safety standards in 49 CFR Part 195 for pipeline facilities and the transportation of hazardous liquids or carbon dioxide associated with those facilities in or affecting interstate or foreign commerce. The Pipeline Safety Act, and thereby the regulations in 49 CFR Part 195, extend to pipeline facilities, whether intrastate or interstate. See, e.g., Five Flags Pipe Line Co. v. U.S. Dep't of Transp., No. CIV. A. 89-0119 JGP, 1992 WL 78773 (D.D.C. Apr. 1, 1992). The Santa Fe Springs pipeline is an intrastate pipeline in or affecting interstate or foreign commerce within the scope of the Pipeline Safety Act and 49 CFR Part 195. The Santa Fe Springs pipeline transports the crude oil from the Santa Fe Springs tank farm and connects to the Crimson pipeline (0.44 miles) away. The Crimson Pipeline in turn transports the crude oil to a refinery.
Intrastate pipeline facilities are regulated by states that submit annual certification to regulate those facilities; California is one of those states. Accordingly, at a minimum, OSFM enforces the Federal hazardous liquid pipeline safety regulations for intrastate pipelines in the state of California, including the Santa Fe Springs pipeline.
Furthermore, the Santa Fe Springs pipeline, which transports crude oil, may be subject to the Clean Water Act as amended by the Oil Pollution Act of 1990 (33 U.S.C. § 1321) and an oil spill response plan may be required to be submitted to PHMSA if Maverick determines that it is likely that the worst case discharge from any point on the line section would adversely affect, within 4 hours after the initiation of the discharge, any navigable waters, public drinking water intake, or environmentally sensitive areas (§194.101(b)(2)(ii)). An operator of a pipeline for which a response plan is required may not handle, store or transport crude oil in that pipeline unless the operator has submitted a response plan meeting the requirements of 49 CFR Part 194.
If we can be of further assistance, please contact Tewabe Asebe at 202-366-5523.
Sincerely,
John A. Gale
Director, Office of Standards
and Rulemaking