Interpretation Response #PI-19-0017
Below is the interpretation response detail and a list of regulations sections applicable to this response.
Interpretation Response Details
Response Publish Date:
Company Name: Flint Hills Resources
Individual Name: Ms. Kim Gerold
Location State: MN Country: US
View the Interpretation Document
Response text:
Ms. Kim Gerold
Manager of Pipeline Safety
Flint Hills Resources
P.O. Box 64596
Saint Paul, MN 55164
Dear Ms. Gerold:
In a letter dated October 17, 2019, to the Pipeline and Hazardous Materials Safety Administration (PHMSA), Flint Hills Resources (FHR) requested an interpretation of 49 Code of Federal Regulations (CFR) Part 195. Specifically, FHR requested an interpretation of the application of Part 195 to its pipeline that transports jet fuel from the FHR Pine Bend Refinery to the Minneapolis St. Paul Airport (Airport Pipeline), in particular the points of demarcation between the regulated Airport Pipeline and the connecting in-plant and airport facilities. The Airport Pipeline is an intrastate pipeline subject to the regulatory authority of the Minnesota Office of Pipeline Safety (MNOPS) under a § 60105 certification. You provided supplemental letters related to this matter on September 25, 2020.
You stated FHR received a PHMSA interpretation dated February 25, 2019 (Interpretation Response PI-17-0011) issued to MNOPS concerning the applicability of 49 CFR Part 195 to the Airport Pipeline. You stated both the PHMSA interpretation and underlying MNOPS request were based on inaccurate information regarding the Airport Pipeline and connecting facilities. In particular, you noted that factual information was incorrect with regard to pipeline operating pressure, pressure control and leak detection. For example, you stated the pipeline does not operate above 20% SMYS and there is no surge relief on the pipeline, as were stated in Interpretation PI-17-0011.
In light of your submission, PHMSA finds that it has conflicting information about the design and operating specifications of the Airport Pipeline that influence demarcation of the regulated portion. While PHMSA is not validating one statement of facts over another, PHMSA can affirm its longstanding interpretation of the scope of Part 195, including the end points of regulation when a pipeline leaves a refinery or delivers product to a materials transportation terminal.
Part 195 applies to all pipeline facilities and the transportation of hazardous liquids or carbon dioxide associated with those facilities, with certain exceptions. Among those exceptions, § 195.1(b)(8) and (b)(9)(ii) exclude from Part 195 certain facilities, including in-plant piping systems associated with refining, and terminal facilities used exclusively to transfer hazardous liquid to or between a non-pipeline mode of transportation, respectively.
With respect to the in-plant piping exception in § 195.1(b)(8), Part 195 does not apply to the transportation of hazardous liquid or carbon dioxide through onshore production (including flow lines), refining, or manufacturing facilities or storage or in-plant piping systems associated with such facilities. In-plant piping system means, pursuant to § 195.2, piping that is located on the grounds of a plant and used to transfer hazardous liquid or carbon dioxide between plant facilities or between plant facilities and a pipeline or other mode of transportation, not including any device and associated piping that are necessary to control pressure in the pipeline under § 195.406(b). With respect to terminal facilities, § 195.1(b)(9)(ii) excepts facilities located on the grounds of a materials transportation terminal if the facilities are used exclusively to transfer materials between non-pipeline modes of transportation or between a non-pipeline mode and a pipeline. Like the in-plant piping exception, PHMSA has treated the demarcation point of the materials terminal facility to be the same as under § 195.1(b)(8).
PHMSA has previously explained that the point of demarcation between a regulated pipeline and unregulated in-plant piping is the inlet of the pressure control device if the pipeline is moving product away from plant grounds or the outlet of the pressure control device if the pipeline is supplying the plant. If there is no such pressure control device on plant grounds, in-plant piping would extend to the boundary of plant grounds. See, e.g., Regulatory Review: Hazardous Liquid and Carbon Dioxide Pipeline Safety Standards, Notice of Proposed Rulemaking, 57 FR 56304, 56305 (Nov. 27, 1992); and PHMSA Letter of Interpretation to Buckeye Texas Processing, PI-20-0004 (Apr. 7, 2020). The regulation does not indicate any other component serves as the demarcation point, such as a meter or leak detection component, if such device is not necessary to control pressure in the pipeline under § 195.406(b). See Regulatory Review: Hazardous Liquid and Carbon Dioxide Pipeline Safety Standards, Final Rule, 59 FR 33388, 33389 (Jun. 28, 1994) (recognizing components, such as pipe, meters, instruments, and manifolds, located on plant grounds may fall outside Part 195, and affirming the plant boundary is a more convenient demarcation of in-plant piping than an unspecific inside-the-plant component).
PHMSA has also explained the exception for in-plant piping associated with refining applies only to piping located on the grounds of the plant. If the refinery is separated by a public thoroughfare, the exception still applies to transfer piping crossing the road, but the exception does not apply to inter-facility lines or delivery lines off plant grounds. Final Rule, 59 FR at 33389.
With respect to the terminal facilities exception in § 195.1(b)(9)(ii), Part 195 does not apply to transportation of hazardous liquid or carbon dioxide through facilities located on the grounds of a materials transportation terminal if the facilities are used exclusively to transfer hazardous liquid or carbon dioxide between non-pipeline modes of transportation or between a non-pipeline mode and a pipeline. The exception does not include any device and associated piping necessary to control pressure in the pipeline under § 195.406(b).
Like the in-plant piping exception, PHMSA has treated the demarcation point between a regulated pipeline and unregulated materials terminal facility to be the pressure control device that is necessary to control pressure on the pipeline. PHMSA has also explained the exception does not include breakout tanks and associated piping, because such facilities are not used exclusively for transfers between non-pipeline and pipeline modes. NPRM, 57 FR at 56305. While PHMSA did not mention demarcation where there is no pressure control device on terminal grounds, it is reasonable to apply the same demarcation as the in-plant piping exception, namely, the terminal boundary. The terminal facilities exception applies only to those terminal facilities located on the grounds of the terminal. Terminal facilities located off terminal grounds do not fall within the exception and are, therefore, subject to Part 195. Final Rule, 59 FR at 33389.
In light of the longstanding application of these exceptions, PHMSA recommends that FHR and MNOPS jointly evaluate the design and operating specifications of the Airport Pipeline and determine the demarcation points consistent with this interpretation. In particular, PHMSA notes that FHR has described design limitations of its pipeline in which the pumps cannot cause the Airport Pipeline to experience pressures exceeding the maximum operating pressure (MOP) and, therefore, the pipeline is not required to have pressure control devices on the plant grounds. If MOP could be exceeded (such as by the outlet pressure capacity of the pump, change-out of a pump impeller or the closing or opening of a valve) however, the Airport Pipeline must have adequate controls and protective equipment to control the pressure within the limits established by § 195.406.
Please note this interpretation addresses the applicability of Part 195 to the Airport Pipeline operated by FHR, and does not address other facilities at or near the Minneapolis St. Paul Airport, such as tanks and pipelines operated by Swissport or other entities.
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