[Federal Register Volume 63, Number 126 (Wednesday, July 1, 1998)]
[Notices]
[Pages 36018-36024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17492]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration
[Docket No. RSPA-98-3891; Notice 12]
Pipeline Safety: Intent To Approve Project and Environmental
Assessment for the Mobil Pipe Line Company Pipeline Risk Management
Demonstration Program
AGENCY: Office of Pipeline Safety, Research and Special Programs
Administration, DOT.
ACTION: Notice of Intent to Approve Project and Environmental
Assessment.
-----------------------------------------------------------------------
SUMMARY: As part of its Congressional mandate to conduct a Risk
Management Demonstration Program, the Office of Pipeline Safety (OPS)
has been authorized to conduct demonstration projects with pipeline
operators to determine how risk management might be used to complement
and improve the existing Federal pipeline safety regulatory process.
This is a notice that OPS intends to approve Mobil Pipe Line Company
(Mobil) as a participant in the Pipeline Risk Management Demonstration
Program. This also provides an environmental assessment of Mobil's
demonstration project. Based on this environmental assessment, OPS has
preliminarily concluded that this proposed project will not have
significant environmental impacts.
This notice explains OPS's rationale for approving this project,
and summarizes the demonstration project provisions (including affected
locations, risk control and monitoring activities, and regulatory
exemptions) that would go into effect once OPS issues an order
approving Mobil as a Demonstration Program participant. OPS seeks
public comment on the proposed demonstration project so that it may
consider and address these comments before approving the project. The
Mobil demonstration project is one of several projects OPS plans to
approve and monitor in assessing risk management as a component of the
Federal pipeline safety regulatory program.
ADDRESSES: OPS requests that comments to this notice or about this
environmental assessment be submitted on or before July 31, 1998 so
they can be considered before project approval. However, comments on
this or any other demonstration project will be accepted in the Docket
throughout the 4-year demonstration period. Comments should be sent to
the Dockets Facility, U.S. Department of Transportation, Plaza 401, 400
Seventh Street, SW, Washington, DC 20590-0001, or you can E-Mail your
comments to [email protected]. Comments should identify the
docket number RSPA-98-3891. Persons should submit the original comment
document and one (1) copy. Persons wishing to receive confirmation of
receipt of their comments must include a self-addressed stamped
postcard. The Dockets Facility is located on the plaza level of the
Nassif Building in Room 401, 400 Seventh Street, SW, Washington, DC.
The Dockets Facility is open from 10:00 a.m. to 5:00 p.m., Monday
through Friday, except on Federal holidays.
FOR FURTHER INFORMATION CONTACT: Elizabeth Callsen, OPS, (202) 366-
4572, regarding the subject matter of this notice. Contact the Dockets
Unit, (202) 366-5046, for docket material.
SUPPLEMENTARY INFORMATION:
1. Background
The Office of Pipeline Safety (OPS) is the federal regulatory body
overseeing pipeline safety. As a critical component of its federal
mandate, OPS administers and enforces a broad range of regulations
governing safety and environmental protection of pipelines. These
regulations have contributed to a good pipeline industry safety record
by assuring that risks associated with pipeline design, construction,
operations, and maintenance are understood, managed, and reduced.
Preserving and improving this safety record is OPS's top priority. On
the basis of extensive research, and the experience of both government
and industry, OPS believes that a risk management approach, properly
implemented and monitored, offers opportunities to achieve:
(1) Superior safety, environmental protection, and service
reliability;
(2) Increased efficiency and reliability of pipeline operations;
and
(3) Improved communication and dialogue among industry, the
government, and other stakeholders.
A key benefit of this approach is the opportunity for greater
levels of public participation.
As authorized by Congress, OPS is conducting a structured
Demonstration Program to evaluate the use of a comprehensive risk
management approach in the operations and regulation of interstate
pipeline facilities. This evaluation will be performed under strictly
controlled conditions through a set of Demonstration Projects to be
conducted with interstate pipeline operators. A Presidential Directive
to the Secretary of Transportation (October 16, 1996) stated that in
implementing the Pipeline Risk Management Demonstration Program: ``The
Secretary shall require each project to achieve superior levels of
public safety and environmental protection when compared with
regulatory requirements that otherwise would apply.'' Thus, the process
to select operators for this Demonstration Program involves a
comprehensive review to ensure that the proposed project will provide
the superior safety and environmental protection required by this
Directive. OPS may exempt a participating operator from particular
regulations if the operator needs such flexibility in implementing a
comprehensive risk management program; however, regulatory exemption is
neither a goal nor requirement of the Demonstration Program. This
document summarizes the key points of this review for Mobil's
demonstration project, and evaluates the safety and environmental
impacts of this proposed project.
2. OPS Evaluation of Mobil's Demonstration Project Proposal
Using the consultative process described in Appendix A of the
Requests for Application for the Pipeline Risk Management Demonstration
Program (62 FR 14719), published on March 27, 1997, OPS has reached
agreement with Mobil Pipe Line Company on the provisions for a
demonstration project to be conducted at a crude oil storage tank
facility in Patoka, Illinois.
Company History and Record
Mobil Pipe Line Company currently owns approximately 5409 miles of
[[Page 36019]]
hazardous liquid pipeline throughout nine states. The Patoka, Illinois
crude breakout facility is located within the city limits of Vernon,
Illinois, population about 150, in Mobil's East of the Rockies (EOR)
operating region.
Before entering into consultations with Mobil, OPS determined that
Mobil was a good demonstration program candidate based on an
examination of the company's safety and environmental compliance
record, its accident history, and its commitment to working with OPS to
develop a project meeting the Demonstration Program goals.
In considering the merits of Mobil's proposal, OPS undertook a
comprehensive review of the company's safety and compliance record for
the demonstration project location, as well as Mobil's entire East of
the Rockies (EOR) system. Mobil, like all operating companies, has
experienced incidents at its facilities within and outside the United
States. In the last five years, the only incident at Patoka of
sufficient impact that required reporting to OPS occurred on March 7,
1995. A roof drain hose failed due to ice formation during sub-zero
temperatures. This event resulted in no injuries, and the company
reported that 196 of the 200 barrels spilled were recovered.
Considering the frequency, causes, and consequences of these
events, together with Mobil's response to these events, OPS has
concluded that Mobil has demonstrated the corporate commitment to
safety and environmental protection required of demonstration program
candidates.
Mobil has also demonstrated a strong working relationship with
emergency response personnel from federal and state agencies. Mobil
recently participated in a successful emergency drill with
representatives from OPS, the Environmental Protection Agency (EPA),
and the Coast Guard. Local and state participants from Illinois and
Missouri played active roles in this exercise.
Consultative Evaluation
During the consultations, OPS headquarters and Central Region
representatives, an Illinois pipeline safety official, and risk
management experts, met with Mobil to discuss Mobil's Environment,
Health, and Safety Management System (EHSMS). These discussions
included the programmatic and technical processes associated with the
risk management element of the EHSMS, the specific risk assessments
that Mobil has or will perform as part of this program, other
supporting analyses Mobil performed, proposed risk control activities
to address identified risks, and proposed performance measures to
ensure superior performance is being achieved. The discussions
addressed the adequacy of Mobil's management systems and technical
processes, demographics near the demonstration facility, communications
with outside stakeholders, and monitoring and auditing of results once
the demonstration project is underway. The consultation process also
included an environmental assessment, which is described in the
appendix to this notice.
The consultation process was structured around three major review
criteria:
1. Whether Mobil's proposed risk management demonstration program
is consistent with the Risk Management Program Standard and compatible
with the Guiding Principles set forth in that Standard;
2. Whether the specific risk control activities that will result
from Mobil's proposed risk management program are expected to produce
superior safety, environmental protection, and reliability of service
compared to that achieved from compliance with the current regulations;
3. Whether Mobil's proposed risk management demonstration program
includes a company work plan and a performance monitoring plan that
will provide adequate assurance that the expectations for superior
safety, environmental protection, and service reliability are actually
being achieved during implementation.
The demonstration project provisions described in this notice
evolved from these consultations, as well as any public comments
received to date. Once OPS and Mobil consider comments received on this
notice, OPS plans to issue an order approving the Mobil demonstration
project.
3. Statement of Project Goals
OPS and Mobil believe Mobil's demonstration project will improve
safety and environmental protection through the application of the
Mobil EHSMS, which includes numerous hazard and risk assessments and
risk control activities beyond current regulatory requirements.
Specifically, the project will focus on safety and environmental issues
associated with breakout tanks and tank facilities, and will
demonstrate the adequacy of Mobil's release prevention and tank
integrity programs. The project will help demonstrate how Mobil's
release prevention activities will work in conjunction with proposed
American Petroleum Institute (API) aboveground storage tank standards
and National Fire Protection Association (NFPA) codes on flammable and
combustible liquids. OPS has issued a notice of proposed rulemaking
that would incorporate by reference selected industry standards for
breakout tanks into 49 CFR Part 195. (see Federal Register Notice 63 FR
27903, published 05/21/98.) Information and insights from the Mobil
project will help OPS determine if the proposed regulations effectively
address the most important risks at tank facilities, and help operators
define the most effective means of addressing these risks.
The Patoka crude breakout tank facility will be the initial focus
of the Mobil demonstration project. Mobil has conducted a thorough and
systematic hazard analysis and risk assessment to identify hazards and
risks associated with operating the facility. Mobil invited OPS to
observe these assessments. Based on these risk assessments, Mobil has
identified potential corrective actions for various systems at the
facility, including piping, pumps, communications, fire water system,
utility/support systems, and cast iron valves. During the demonstration
project, Mobil will identify the specific risk control activities that
are expected to result in reduced risk and superior safety and
reliability at the facility. These risk control activities will exceed
the requirements of the current regulations.
Through these activities at Patoka, both Mobil and OPS will improve
their understanding of risks associated with tanks and the most
effective risk control activities to manage these risks. Mobil will use
this information to assure superior performance at Patoka and, as
appropriate, at other Mobil tank facilities. OPS will use the
additional information to assure that Mobil and OPS fully understand
the major risks of the Patoka facility and that Mobil is implementing
effective risk control activities, specific to the Patoka facility.
Mobil seeks no relief from current pipeline safety regulations
governing the operation of the Patoka facility. The Patoka facility
would be exempt from compliance with any new regulations that are not
consistent with the approved risk management activities and OPS would
continue to monitor Mobil's performance under the risk management order
to assure that superior performance is being achieved.
4. Demonstration Project Facility:
The Patoka facility is located within the city limits of Vernon,
Illinois, a town with a population of about 150. The surrounding area
is also low population density. The facility contains 22 vertical
aboveground crude
[[Page 36020]]
storage tanks, plant transfer piping, transfer pumps, crude oil
blenders, offices, a maintenance building, miscellaneous auxiliary
pipeline station equipment, and the station manager's personal
residence. Patoka is a self-contained facility, with no public roads
traversing the property. The North Fork Creek, which runs along the
south end of the Patoka facility, is a water supply for the city of
Patoka. Mobil protects the creek by maintaining a second physical
barrier surrounding each tank that is capable of holding more than the
entire contents of the tank. Mobil has provided additional
precautionary barriers to releases of product along the south end of
its Patoka facility.
The facility is used as a common carrier crude pipeline handling
facility. Products handled at the facility include crudes of varying
sulphur content from the US Gulf Coast and Canada, and petroleum
condensate. The products include both ``sour'' crude (oil with a total
sulphur content above one percent), and ``sweet'' crude (oil with
little or no sulphur impurities).
5. Project Description
In 1996, Mobil updated its Corporate Policy on Environment, Health,
and Safety (EHS). To fulfill the commitments in the EHS Policy, Mobil
has adopted an Environmental, Health, and Safety Management System
(EHSMS). The EHSMS is the vehicle for institutionalizing a
comprehensive and integrated risk management program throughout Mobil.
The primary objective of the Mobil project is to demonstrate that
implementing the EHSMS will lead to superior performance, improved
safety and environmental protection.
Mobil's environment, health, and safety program includes 11 key
elements and 56 specific management ``expectations''. An
``expectation'' within the EHSMS is a well-defined objective and
includes identification of those accountable and responsible for
achieving the objective, the documentation required to demonstrate
achievement, performance indicators, and the key corporate resources
that will be used to achieve the objective.
The 11 elements are:
1. Policy and Leadership.
2. Continuous Improvement.
3. Safety and Health.
4. Risk Management.
5. Incident Reporting and Investigation.
6. Crisis Preparedness.
7. Environmental Protection.
8. Product Stewardship.
9. Training.
10. Community Relations.
11. Legal Requirements.
The Risk Management element of the program (Element #4) has four
expectations:
4.1 A system is in place to identify environment, health, and
safety hazards and their potential consequences.
4.2 A system is in place to assess and prioritize risks and manage
them in a cost-effective manner.
4.3 A system is in place to review the design of new and modified
facilities to ensure the incorporation of appropriate environment,
health, and safety protection measures.
4.4 Risks associated with the acquisition, closure and divestment
of facilities and operations are assessed and managed.
Mobil has structured and documented processes in place for
performing the hazards analyses, risk assessments, and job safety
analyses, prioritizing risks, defining risk control activities, and
evaluating and prioritizing risk control activities required to meet
the corporate expectations. These structured analytical and management
processes also satisfy the requirements of the Risk Management Program
Standard.
The Mobil EHSMS also includes structured processes for qualifying
and training personnel in risk assessment, and integrating the risk
assessment program with other Mobil operating and business systems,
including those processes used by Mobil to ensure that proposed changes
to the physical design of the system or to the maintenance and
operating procedures of the system are carefully considered,
documented, and communicated.
Mobil's East of the Rockies (EOR) business unit, which is
responsible for the Patoka facility, has defined the accountabilities,
responsibilities, documentation requirements, and performance
indicators for management expectations, including the four risk
management expectations. A business unit review of how Mobil's EOR
Business Unit is implementing the EHSMS was performed in the First
Quarter of 1998, and no significant deficiencies were reported.
Business unit reviews will occur annually.
Mobil has performed the required hazards assessment, job safety
analyses, and risk assessment of its Patoka facility. Mobil has
identified a variety of potential risk control activities to address
the identified risks including improvements to piping, pumps,
communications, fire water system, utility/support systems, and cast
iron valves. During the demonstration project, Mobil will identify the
specific set of risk control activities that will best manage the risks
identified. Mobil will continue to perform all of the preventive
measures and risk control activities currently in effect. In addition,
through the EHSMS process, Mobil has identified facility-specific
hazards and concerns that were not specifically or adequately addressed
through compliance with current DOT regulations. The risk analyses that
Mobil has performed are beyond the requirements of the current
regulations.
Mobil has defined performance indicators for management
expectations, including performance indicators for the four risk
management expectations discussed previously. Mobil tracks several high
level EHS performance indicators including the number of environmental
incidents, DOT and OSHA reportable incidents, and lost work days. The
financial compensation for Mobil employees is tied to these performance
measures. Ongoing audits and assessments, conducted as part of the
Continuous Improvement element (Element #2 of the EHSMS), assure that
all expectations have been met.
The activities below would be included in an Order formally
approving the Mobil demonstration project:
Share information with OPS concerning the use of hazards
analyses, risk screening tools, and other risk assessment and
prioritization tools;
Share information with OPS concerning facility-specific
risks at Patoka;
Share information with OPS concerning the preventive and
risk control activities Mobil has identified to address these risks and
their relative priority;
Implement the risk control activities selected for Patoka;
Share information with OPS concerning the lessons learned
on institutionalizing risk management programs to help OPS in
evaluating the effectiveness of risk management programs; and
Track, monitor, and report performance measures selected
to determine the effectiveness of the risk control activities selected
for Patoka, and the Mobil risk management program in general.
Monitoring Demonstration Project Effectiveness
The Mobil Demonstration Project includes a comprehensive approach
to performance monitoring that assures the superior protection of
public safety and the environment, and achieves other project
objectives. A key element of this monitoring plan is a set of
programmatic performance measures that would track the growth and
institutionalization of
[[Page 36021]]
risk management within the company, measure the effectiveness of the
EHSMS in achieving stated expectations, and measure the effectiveness
of specific risk control activities. Mobil uses a simple, three point
scale to score performance in implementing the Mobil EHSMS:
0=No Evidence That Expectation is Being Met
1=Expectation is Partially Met
2=Expectation is Fully Met
B=Best Practice (equivalent to a ``2'' for roll-up purposes)
Mobil will report performance measurement data and project progress
quarterly to OPS throughout the four year demonstration period. This
information, as well as periodic OPS audits, will assure accountability
for improved performance.
6. Regulatory Perspective
Why Is OPS Considering This Project?
OPS is considering Mobil's proposed project for the Demonstration
Program because, after extensive review, OPS is satisfied that the
proposal:
1. Provides superior safety and environmental protection for the
Patoka facility. Mobil has adequately demonstrated that the risk
control activities it will perform at Patoka go beyond current pipeline
safety regulatory requirements and, thus, provide a higher level of
public safety and environmental protection than exists today.
2. Offers a good opportunity to evaluate risk management as a
component of the Federal pipeline safety regulatory program. OPS
believes the Demonstration Program could benefit from Mobil's
participation, given some of the distinguishing features of its
proposed demonstration project, including:
A fully-institutionalized, integrated, corporate-wide risk
management program with documented roles, responsibilities, and
accountabilities;
Comprehensive evaluation of the hazards and risks of the
facility;
A structured and documented approach for identifying and
evaluating the relative merits of risk control activities through a
multi-attribute decision process;
A good illustration of how companies can use risk
management to improve safety and environmental protection over and
above current regulatory requirements;
Willingness to share information with OPS and state
pipeline safety agencies on the specific risks associated with the
facility, as well as its risk management program and processes.
3. Provides valuable information about the risks and effective risk
control activities for aboveground storage tanks. This additional
information will allow OPS to more effectively ensure
4. Safe operation of Patoka, and be better able to develop, apply,
and enforce regulations related to aboveground storage tanks.
How Will OPS Oversee This Project?
OPS retains its full authority to administer and enforce all
regulations governing pipeline safety. Mobil is not requesting any
regulatory exemptions. The Patoka facility will be subject to the
routine OPS inspection to ensure compliance with the applicable Federal
Pipeline Safety Regulations. In addition, subsequent to approval, a
Project Review Team (PRT) consisting of OPS headquarters and regional
staff and state pipeline safety officials who have been reviewing the
proposal, will continue to monitor the project. The PRT is designed to
be a more comprehensive oversight process which draws maximum technical
experience and perspective from all affected OPS regional and
headquarters offices as well as any affected state agencies that would
not normally provide oversight on interstate transmission projects.
One of the primary functions of this Team will be to conduct
periodic risk management audits. These risk management audits will be
used to ensure company compliance with the specific terms and
conditions of the OPS Order authorizing this Demonstration Project. OPS
is developing a detailed audit plan, tailored to the unique
requirements of the Mobil Demonstration Project. This plan will
describe the audit process (e.g., types of inspections, methods, points
of disclosure of risk assessment information, frequency of audit), as
well as the specific requirements for reporting information and
performance measurement data to OPS.
Information Provided to the Public
OPS has previously provided information to the public about the
Mobil project, and has requested public comment, using many different
sources. OPS aired an electronic town meeting on September 17, 1997
that enabled viewers of the two-way live broadcasts to pose questions
and voice concerns about candidate companies (including Mobil). An
earlier Federal Register notice (62 FR 53052; October 10, 1997)
informed the public that Mobil was interested in participating in the
Demonstration Program, provided general information about technical
issues and risk control alternatives to be explored, and identified the
geographic areas the demonstration project would traverse.
Since August 1997, OPS has used an Internet-accessible data system
called the Pipeline Risk Management Information System (PRIMIS) at
http://www.cycla.com/opsdemo to collect, update, and exchange
information about all demonstration candidates, including Mobil.
At a November 19, 1997, public meeting hosted by OPS in Houston,
TX, Mobil officials presented a summary of the proposed demonstration
project and answered questions from meeting attendees. (Portions of
this meeting were broadcast on January 15, 1998, 2:00 p.m. Eastern
Standard Time, via satellite to locations nationwide and via Internet
to individuals at their personal computers). OPS featured members of
the Patoka community on a satellite/Internet nationwide broadcast which
aired March 26, 1998. The school superintendent, fire chief, and mayor
were among the citizens who remarked on community relations, training
programs, exercises, spill drills, and other interactions between the
company and citizens. In addition to viewers of the live broadcast at
sites throughout the nation, the Internet broadcast received over 4300
hits.
OPS has provided a prospectus, which includes a map of the
demonstration sites, to State officials and community representatives
who may be interested in reviewing project information, providing
input, or monitoring the progress of the project. This notice is OPS's
final request for public comment before OPS intends to approve Mobil's
demonstration project. So far, the public has not raised any issues or
concerns related to the Mobil proposal.
Issued in Washington, DC on June 25, 1998.
Richard B. Felder,
Associate Administrator for Pipeline Safety.
Appendix--Environmental Assessment
A. Background and Purpose
A Presidential Directive to the Secretary of Transportation
(October 16, 1996) stated that in implementing the Pipeline Risk
Management Demonstration Program: ``The Secretary shall require each
project to achieve superior levels of public safety and
environmental protection when compared with regulatory requirements
that otherwise would apply.'' Thus, the process to select operators
for this Demonstration Program involves a comprehensive review to
ensure that the proposed project will provide the superior safety
and environmental protection required by this Directive. This
document summarizes the key points of this review for Mobil Pipe
Line Company's (Mobil)
[[Page 36022]]
demonstration project, and evaluates the safety and environmental
impacts of this proposed project.
This document was prepared in accordance with section 102(2)(c)
of the National Environmental Policy Act (42 U.S.C. Section 4332),
the Council on Environmental Quality regulations (40 CFR Sections
1500-1508), and Department of Transportation Order 5610.1c,
Procedures for Considering Environmental Impacts.
B. Description of Proposed Action
Mobil will conduct its demonstration project at its crude oil
breakout storage tank facility in Patoka, Illinois. Mobil has
adopted an Environment, Health, and Safety Management System (EHSMS)
to institutionalize a comprehensive and integrated risk management
program throughout the company. The proposed project's primary
objective is to demonstrate that implementing the Mobil EHSMS will
lead to superior performance, improved safety and environmental
protection. The project will focus on safety and environmental
issues associated with breakout tanks and tank facilities, and will
demonstrate the adequacy of Mobil's release prevention and tank
integrity programs.
As a result of a comprehensive review of Mobil's risk management
demonstration project, the Office of Pipeline Safety (OPS) proposes
to approve this project for participation in the Demonstration
Program.
The Risk Management element of Mobil's EHSMS (Element #4)
contains four expectations:
4.1 A system is in place to identify environment, health, and
safety hazards and their potential consequences.
4.2 A system is in place to assess and prioritize risks and
manage them in a cost-effective manner.
4.3 A system is in place to review the design of new and
modified facilities to ensure the incorporation of appropriate
environment, health, and safety protection measures.
4.4 Risks associated with the acquisition, closure and
divestment of facilities and operations are assessed and managed.
Each ``expectation'' within the EHSMS contains a well-defined
objective and includes identification of those accountable and
responsible for achieving the objective, the documentation required
to demonstrate achievement, performance indicators, and the key
corporate resources that will be used to achieve the objective.
Mobil has structured and documented processes in place for
performing the hazards analyses, risk assessments, job safety
analyses, prioritizing risks, defining risk control activities, and
evaluating and prioritizing risk control activities required to meet
the corporate expectations. These structured analytical and
management processes also satisfy the requirements of the Risk
Management Program Standard.
The Mobil EHSMS also includes structured processes for
qualifying and training personnel in risk assessment, and
integrating the risk assessment program with other Mobil operating
and business systems, including those processes used by Mobil to
ensure that proposed changes to the physical design of the system,
or to the maintenance and operating procedures of the system, are
carefully considered, documented, and communicated.
Mobil is performing the required hazards assessment, job safety
analyses, and risk assessment of its Patoka facility and will
identify a set of risk control activities to effectively manage the
risks identified. Mobil requests no exemptions from the current
pipeline safety regulations. Mobil will continue to perform all of
the preventive measures and risk control activities that are
presently in effect. In addition, through the EHSMS process, Mobil
has identified facility-specific hazards and concerns that were not
specifically or adequately addressed through compliance with current
pipeline safety regulations. The analyses that Mobil has performed
and the risk control activities that Mobil will perform are beyond
the requirements of the current regulations.
Mobil will define performance indicators for each of the 56
management objectives in the EHSMS. The financial compensation for
Mobil employees is tied to these performance measures. Ongoing
audits and assessments, conducted as part of the Continuous
Improvement element of EHSMS (Element #2), will assure that all
expectations are being met.
The activities below would be included in an Order formally
approving the Mobil demonstration project:
Share information with OPS concerning the use of
hazards analyses, risk screening tools, and other risk assessment
and prioritization tools;
Share information with OPS concerning the facility-
specific risks at Patoka;
Share information with OPS concerning the preventive
and risk control activities Mobil has identified to address these
risks and their relative priority;
Implement the risk control activities selected for
Patoka;
Share information with OPS concerning the lessons
learned on institutionalizing risk management programs to help OPS
in evaluating the effectiveness of risk management programs;
Track, monitor, and report performance measures
selected to determine the effectiveness of the risk control
activities selected for Patoka, and the Mobil risk management
program in general.
Monitoring Demonstration Project Effectiveness
The Mobil Demonstration Project includes a comprehensive
approach to performance monitoring that assures the superior
protection of public safety and the environment, and achieves other
project objectives. A key element of this monitoring plan is a set
of programmatic performance measures that would track the growth and
institutionalization of risk management within the company, measure
the effectiveness of the EHSMS in achieving stated expectations, and
measure the effectiveness of specific risk control activities.
Mobil will report performance measurement data and project
progress regularly to OPS throughout the four year demonstration
period. This information, as well as periodic OPS audits, will
assure accountability for improved performance.
More detailed descriptions of all aspects of the Mobil proposal
and OPS rationale for approving the project are available to the
public via the Pipeline Risk Management Information System (PRIMIS),
at http://www.cycla.com/opsdemo.
C. Purpose and Need for Action
As authorized by Congress, OPS is conducting a structured
Demonstration Program to evaluate the use of a comprehensive risk
management approach in the operations and regulation of interstate
pipeline facilities. This evaluation is being performed under
strictly controlled conditions through a set of demonstration
projects being conducted with interstate pipeline operators. Through
the Demonstration Program, OPS will determine whether a risk
management approach, properly implemented and monitored through a
formal risk management regulatory framework, achieves:
(1) Superior safety and environmental protection; and
(2) Increased efficiency and service reliability of pipeline
operations.
In June, 1997, Mobil submitted a Letter of Intent to OPS, asking
to be considered as a Demonstration Program candidate. Using the
consultative process described in Appendix A of the Requests for
Application for the Pipeline Risk Management Demonstration Program
(62 FR 14719), published on March 27, 1997, OPS is satisfied that
Mobil's proposal will provide superior safety and environmental
protection, and is prepared to finalize the agreement with Mobil on
the provisions for the demonstration project.
D. Alternatives Considered
OPS has considered three alternatives: approval of the Mobil
risk management demonstration project as proposed in Mobil's
application; denial of the Mobil demonstration project; or approval
of the project with certain modifications to Mobil's application.
OPS's preferred alternative is to approve the Mobil
demonstration project. OPS is satisfied that the proposal protects
the Patoka facility and surrounding environment. The risk assessment
findings disclosed from Mobil's hazard and risk analyses already
exceed the information that would have been available to OPS through
the current regulatory process. As a result of the assessments,
Mobil is considering potential corrective actions for various
systems at the facility, including piping, pumps, communications,
fire water system, utility/support systems, and cast iron valves.
Because Mobil will continue to perform the activities currently
required by the regulations, the set of proposed risk control
activities will go beyond the current regulatory requirements to
provide a higher level of protection than exists today. OPS and
Mobil will monitor and, if necessary, improve the effectiveness of
the risk control activities throughout the demonstration period.
[[Page 36023]]
Denial of the project would result in OPS's considerable loss of
valuable information concerning the sources of risks at Patoka and
other similar breakout tank facilities and the most effective means
of managing these risks. Denial would also significantly diminish
OPS's ability to evaluate the effectiveness of an institutionalized,
integrated, and comprehensive risk management program in producing
superior performance, and would hinder OPS's ability to satisfy the
objectives of the Risk management Demonstration Program, and the
requirements of the previously-mentioned Presidential Directive.
All of the issues raised by OPS, state regulators, stakeholders,
and the public about Mobil's proposed project have been discussed
within the consultative process, resolved to OPS's satisfaction, and
reflected in Mobil's application. Therefore, OPS does not believe
that modifications to Mobil's application are required.
E. Affected Environment and Environmental Consequences
The Patoka facility is located within the city limits of Vernon,
Illinois, a town with a population of about 150. The area around the
facility is low population density. The facility contains 22
vertical aboveground crude storage tanks, plant transfer piping,
transfer pumps, crude oil blenders, offices, a maintenance building,
miscellaneous auxiliary pipeline station equipment, and the station
manager's personal residence. Patoka is a self-contained facility,
with no public roads traversing the property.
The North Fork Creek, which runs along the south end of the
Patoka facility, is a water supply for the city of Patoka. Mobil
protects the creek by maintaining a second physical barrier
surrounding each tank that is capable of holding more than the
entire contents of the tank. Mobil has provided additional
precautionary barriers to releases of product along the south end of
its Patoka facility.
The facility is used as a common carrier crude pipeline handling
facility. Products handled at the facility include crudes of varying
sulphur content from the U.S. Gulf Coast and Canada, and petroleum
condensate. The products include both ``sour'' crude (oil with a
total sulphur content above one percent), and ``sweet'' crude (oil
with little or no sulphur impurities). If a tank leak or rupture
were to occur, the crude product could possibly spill into the
immediate surrounding area within the facility, and in the presence
of an ignition source, could ignite releasing fumes into the air.
The likelihood of such spills and the levels of associated
environmental consequences are already very low, as evidenced by
both Patoka-specific and industry-wide operating history. The
performance of the risk demonstration project will result in
additional risk control activities over those currently required,
reducing even further the likelihood of events that could impact the
environment and the potential levels of those impacts.
In considering the merits of Mobil's proposal, OPS undertook a
comprehensive review of the company's safety and compliance record
for the demonstration project location, as well as Mobil's entire
East of the Rockies (EOR) system. Mobil, like all operating
companies, has experienced incidents at its facilities within and
outside the United States. In the last five years, the only incident
at Patoka of sufficient impact that required reporting to OPS
occurred on March 7, 1995. A roof drain hose failed due to ice
formation during sub-zero temperatures. This event resulted in no
injuries and the company reported that 196 of the 200 barrels
spilled were recovered.
Considering the frequency, causes, and consequences of these
events, together with Mobil's response to these events, OPS has
concluded that Mobil has demonstrated the corporate commitment to
safety and environmental protection required of demonstration
program candidates.
Mobil has also demonstrated a strong working relationship with
emergency response personnel from federal and state agencies. Mobil
recently participated in a successful emergency drill with
representatives from OPS, the Environmental Protection Agency (EPA),
and the Coast Guard. Local and state participants from Illinois and
Missouri played active roles in this exercise.
F. Environmental Justice Considerations
In accordance with Executive Order 12898 (Federal Actions to
Address Environmental Justice in Minority and Low-Income
Populations), OPS has considered the effects of the demonstration
project on minority and low-income populations. As explained above,
OPS believes this project will provide superior safety and
environmental protection at the Patoka facility. The risk control
activities will provide greater protection than compliance with
existing regulations. The Patoka facility is located within the city
limits of Vernon, Illinois, population about 150. Residents of
Vernon will be afforded greater protection than they presently have,
regardless of the residents' income level or minority status.
Therefore, the proposed project does not have any disproportionately
high or adverse health or environmental effects on any minority or
low-income populations near the demonstration facility.
G. Information Made Available to States, Local Governments, and
Individuals
OPS has made the following documents publicly available, and
incorporates them by reference into this environmental assessment:
(1) ``Demonstration Project Prospectus: Mobil Pipe Line
Corporation'', June 1998, available by contacting Elizabeth M.
Callsen at 202-366-4572. Includes a map showing the location of the
demonstration project site. Purpose is to reach the public, local
officials, and other stakeholders, and to solicit their input about
the proposed project. Mailed to several hundred individuals,
including Local Emergency Planning Committees (LEPC) and other local
safety officials, Regional Response Teams (RRT) representing other
federal agencies, state pipeline safety officials, conference
attendees, and members of public interest groups.
(2) ``Mobil Pipe Line Company--Application for DOT-OPS Risk
Management Demonstration Program'', available in Docket No. RSPA-98-
3891 at the Dockets Facility, U.S. Department of Transportation,
Plaza 401, 400 Seventh Street, SW, Washington, DC 20590-0001, (202)
366-5046.
(3) ``OPS Project Review Team Evaluation of the Mobil
Demonstration Project''.
(4) ``Notice of Intent to Approve Project'', published
concurrently with this Environmental Assessment.
OPS has previously provided information to the public about the
Mobil project, and has requested public comment, using many
different sources. OPS aired four electronic broadcasts (June 5,
1997; September 17, 1997; and December 4, 1997; and March 26, 1998.)
reporting on demonstration project proposals (the last three of
which provided specific information on Mobil's proposal). An earlier
Federal Register notice (62 FR 53052; October 10, 1997) informed the
public that Mobil was interested in participating in the
Demonstration Program, provided general information about technical
issues and risk control alternatives to be explored, and identified
the geographic areas the demonstration project would traverse.
Since August, 1997 OPS has used an Internet-accessible data
system called the Pipeline Risk Management Information System
(PRIMIS) at http://www.cycla.com/opsdemo to collect, update, and
exchange information about all demonstration candidates, including
Mobil.
At a November 19, 1997, public meeting OPS hosted in Houston,
TX, Mobil officials presented a summary of the proposed
demonstration project and answered questions from meeting attendees.
(Portions of this meeting were broadcast on December 4, 1997.) OPS
featured members of the Patoka community on a satellite/Internet
nationwide broadcast which aired March 26, 1998. The school
superintendent, fire chief, and mayor were among the citizens who
remarked on community relations, training programs, exercises, spill
drills, and other interactions between the company and citizens. In
addition to viewers of the live broadcast at sites throughout the
nation, the Internet broadcast received over 4300 hits. This
broadcast is available on demand via the OPS website ops.dot.gov/
tmvid.htm. So far, the public has not raised any issues or concerns
related to the Mobil proposal.
H. Listing of the Agencies and Persons Consulted, Including Any
Consultants
Persons/Agencies Directly Involved in Project Evaluation
Stacey Gerard, OPS/U.S. Department of Transportation
Tom Fortner, OPS/U.S. Department of Transportation
Ivan Huntoon, OPS/U.S. Department of Transportation
Donald Moore, OPS/U.S. Department of Transportation
Linda Daugherty, OPS/U.S. Department of Transportation
Bruce Hansen, OPS/U.S. Department of Transportation
Elizabeth Callsen, OPS/U.S. Department of Transportation
Steve Smock, Illinois Commerce Commission
Mary McDaniel, Railroad Commission of Texas
[[Page 36024]]
Jim vonHerrmann, Cycla Corporation (consultant)
Andrew McClymont, Cycla Corporation (consultant)
Persons/Agencies Receiving Briefings/Project Prospectus/Requests
for Comment
Regional Response Team (RRT), Region 5, representing the
Environmental Protection Agency; the Coast Guard; the U.S.
Departments of Interior, Commerce, Justice, Transportation,
Agriculture, Defense, State, Energy, Labor; Health and Human
Services; the Nuclear Regulatory Commission; the General Services
Administration; and the Federal Emergency Management Agency (RRT Co-
Chairs: Richard Karl, EPA and Captain Gregory Cope, Coast Guard).
I. Conclusion
Based on the above-described analysis of the proposed
demonstration project, OPS has determined that there are no
significant impacts associated with this action.
[FR Doc. 98-17492 Filed 6-30-98; 8:45 am]
BILLING CODE 4910-60-P