Interpretation Response #PI-11-0004 ([Mississippi Public Service Commission] [Mr. Mark McCarver])
Below is the interpretation response detail and a list of regulations sections applicable to this response.
Interpretation Response Details
Response Publish Date:
Company Name: Mississippi Public Service Commission
Individual Name: Mr. Mark McCarver
Location State: MS Country: US
View the Interpretation Document
Response text:
Mr. Mark McCarver
Director, Pipeline Safety
Mississippi Public Service Commission
501 N West Street, Suite 201-A
Jackson, MS 39201
Dear Mr. McCarver:
In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated March 31, 2011, you asked whether two gas distribution pipeline systems located on Federal properties but operated by non-Federal entities would be subject to the requirements of 49 CFR Parts 191 and 192 and, if so, be regulated by the Mississippi Public Service Commission (MSPSC). You stated that both systems had formerly been operated by Federal personnel and were considered for many years to be exempt from the Federal pipeline safety regulations. You stated, however, that both systems have been recently privatized and that each gas system is now operated by an outside contractor. You also mentioned that both systems also transport gas for resale as defined in § 191.3.
You described the facilities as follows: The first gas system is located on the grounds of the National Aeronautics and Space Administration"s (NASA"s) Stennis Space Center in Hancock County, Mississippi. The system consists of 30.788 miles of 8-inch, 6-inch, 4-inch and 2-inch steel and polyethylene pipelines. This pipeline is operating at 50-55 pounds per square inch gauge (psig). The maximum allowable operating pressure (MAOP) is 150 psig. There are no regulator stations on site and the pressure is regulated by the supplier. There are several cafeterias (buildings) that are owned by NASA and operated by contract personnel. There are several private companies that lease buildings from NASA. This system is now operated by an outside contractor.
The second gas system is located on the grounds of the Kessler Air Force Base in Biloxi, Mississippi. This system consists of approximately 12 miles of 8-inch steel pipeline which carries gas from a Gulf South Pipeline transmission line in Gulfport, Mississippi to the Base. You stated that this line is reported to have a MAOP of 150 psig with a normal operating range of 80 to 100 psig. There are several regulator stations along this line serving military housing with some of the services located outside the perimeter of the Base. This system is now operated by an outside contractor.
The pipeline safety regulations are applicable to pipeline facility operators. The gas pipeline safety regulations at Parts 191 and 192 define an operator to mean a person who engages in the transportation of gas.
The definition of a person in these Federal pipeline safety regulations is:
Person means any individual, firm, joint venture, partnership, corporation, association, State, municipality, cooperative association, or joint stock association, and including any trustee, receiver, assignee, or personal representative thereof.
Based on these definitions and the legislative history of the pipeline safety laws, while a pipeline system is operated by a Federal entity, it is exempt from compliance with the pipeline safety regulations.[1] However, if a system is privatized and becomes operated by a non-Federal entity, the operator must comply with the pipeline safety regulations. Therefore, the answer to the first part of your question is yes, both of these gas pipeline systems are subject to the Part 191 and Part 192 requirements. As to the second part of your question, because the MSPSC has an annual certification at 49 U.S.C. § 60105, both of these gas distribution systems, as intrastate gas pipeline operations, are subject to the authority of the MSPSC as the primary regulator of these pipelines.
I hope that this information is helpful to you. If I can be of further assistance, please contact me at (202) 366-4046.
Sincerely,
John A. Gale
Director
Office of Standards and Rulemaking
[1] PHMSA strongly recommends that even exempt facilities follow the pipeline safety requirements on a voluntary basis to ensure the safety of facility personnel.