Interpretation Response #PI-12-0010 ([Key West Pipeline Company] [Mr. Mark Rauch])
Below is the interpretation response detail and a list of regulations sections applicable to this response.
Interpretation Response Details
Response Publish Date:
Company Name: Key West Pipeline Company
Individual Name: Mr. Mark Rauch
Location State: FL Country: US
View the Interpretation Document
Response text:
Mr. Mark Rauch, President
Pipeline & Terminal Management Corp
Key West Pipeline Company
Building D19
Trumbo Point Naval Station
Key West, FL 33040
Dear Mr. Rauch:
In a letter to the Pipeline and Hazardous Materials Safety Administration (PHMSA) dated September 28, 2012, Key West Pipeline Company (KWPC) requested an interpretation of the applicability of a provision of the Federal pipeline safety regulations at 49 CFR Part 195 to a hazardous liquid pipeline that you operate. Specifically, you ask whether filing requirements for offshore pipeline condition reports are applicable for your pipeline under § 195.57. This followed PHMSA's September 18, 2012, inspection of KWPC pipeline facilities and operations, at which time PHMSA's inspector requested documentation of KWPC's 2010 underwater inspection report as required by §195.57.
You stated that KWPC is the owner/operator of a 4-inch diameter jet fuel delivery pipeline located in Key West, that is subject to 49 CFR Part 195. A portion of the KWPC pipeline lies just off of the shoreline of the island of Key West, in waters of the Gulf of Mexico that are less than 15 feet deep, and the underwater portion of the KWPC pipeline extends several hundred yards seaward from the northern shoreline of Key West.
You stated that in 2005 KWPC conducted its first underwater inspection of the KWPC pipeline as required by § 195.413(a). That inspection identified the presence of an exposed segment of the underwater pipeline. After discovering the exposed underwater segment, KWPC reported it to PHMSA. KWPC subsequently applied for, and was issued, a Special Permit (PHMSA-2006-25026) waiving KWPC's compliance with the § 195.413(c)(2) requirement to place a marker over the exposed underwater pipeline segment. You stated that under the terms of the Special Permit, KWPC is obligated to perform annual inspections of the exposed underwater pipeline segment and to report any material change in the condition of the exposed underwater pipeline segment found during any annual or five-year inspection. You stated that in July 2010 you performed a five-year inspection of the underwater segment of the pipeline and found no material changes to the exposed segment. You acknowledged that you did not submit a § 195.57 report to PHMSA of the results of this inspection, but noted that copies of all five-year inspection reports (as well as the annual inspections of the exposed pipeline segment) are maintained at KWPC's offices in Key West, Florida.
In support of your argument that the underwater portions of the KWPC pipeline are not located offshore, you cited the U.S. Supreme Court decision in U.S. v. States of La., Tex., Miss., Ala., and Fl., 363 U.S. 121 (1960), in which the Court upheld the State of Florida's claim that it owned a three-marine-league belt of land under the Gulf of Mexico, seaward from its coastline. You stated that the KWPC pipeline is located within this belt of land under the Gulf of Mexico. Based on the State of Florida's claim of title to such lands underlying the Gulf of Mexico, in 1964, the State of Florida granted KWPC a perpetual easement over these submerged lands of the State of Florida for the purpose of constructing, installing and maintaining the KWPC pipeline.
In responding to your request, we reviewed the applicable definitions and regulations. Section 195.2 defines "offshore" as:
Offshore means beyond the line of ordinary low water along that portion of the coast of the United States that is in direct contact with the open seas and beyond the line marking the seaward limit of inland waters.
Section 195.57 states:
§ 195.57 Filing offshore pipeline condition reports.
(a) Each operator shall, within 60 days after completion of the inspection of all its underwater pipelines subject to § 195.413(a), report the following information ...
And, § 195.413(a) states:
§ 195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico and its inlets.
(a) Except for gathering lines of 4½ inches (114mm) nominal outside diameter or smaller, each operator shall prepare and follow a procedure to identify its pipelines in the Gulf of Mexico and its inlets in waters less than 15 feet (4.6 meters) deep as measured from mean low water that are at risk of being an exposed underwater pipeline or a hazard to navigation. The procedures must be in effect August 10, 2005.
Thus, the § 195.57 reporting requirement expressly involves reporting of the results of the underwater inspections required by § 195.413. With regard to the Supreme Court decision, we believe there is no conflict with the definition of "offshore" in § 195.2. There is nothing in the definition of the term "offshore" in § 195.2 that states or implies "inland waters" are necessarily state waters. In fact, the term "inland waters" is not in the Supreme Court ruling. Moreover, the Supreme Court did not state that the three-mile limit also demarcated "inland waters" from offshore. It merely acknowledged that Florida and the other coastal states had property interests in the land under the three-mile area seaward from the shoreline. Therefore, the Supreme Court's decision has no relevance to the applicability of the Part 195 regulations to pipelines that transport hazardous liquids in the Gulf of Mexico.
In addition, the special permit was granted to KWPC only for the §§ 195.413(c)(2) and 195.413(c) (3) requirements. The § 195.57 requirements are intended to protect the public and the environment from the hazards associated with pipeline damage caused by vessels in the shallow waters of the Gulf of Mexico. Based on the information you provided, your pipeline meets the intent of the § 195.57 requirements as it is seaward of the Gulf of Mexico shoreline and subject to the underwater inspection requirements of § 195.413.
I hope that this information is helpful to you. If we can be of further assistance, please contact Tewabe Asebe of my staff at (202) 366-5523.
Sincerely,
John A. Gale
Director, Office of Standards and Rulemaking
The Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety provides written clarifications of the Regulations (49 CFR Parts 190-199) in the form of interpretation letters. These letters reflect the agency's current application of the regulations to the specific facts presented by the person requesting the clarification. Interpretations do not create legally-enforceable rights or obligations and are provided to help the public understand how to comply with the regulations.