[Federal Register Volume 63, Number 126 (Wednesday, July 1, 1998)]
[Notices]
[Pages 36024-36030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17493]
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DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration (RSPA), DOT.
[Docket No. RSPA-98-3892; Notice 13]
Pipeline Safety: Intent To Approve Project and Environmental
Assessment for the Phillips Pipe Line Company Pipeline Risk Management
Demonstration Program
AGENCY: Office of Pipeline Safety, DOT.
ACTION: Notice of Intent to Approve Project and Environmental
Assessment.
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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 Phillips Pipe Line Company
(Phillips) as a participant in the Pipeline Risk Management
Demonstration Program. This also provides an environmental assessment
of Phillips'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 Phillips 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
Phillips 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 four 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-98-3892. 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 Phillips's
demonstration project, and evaluates the safety and environmental
impacts of this proposed project.
2. OPS Evaluation of Phillips'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 Phillips Pipe Line Company on the provisions for a
demonstration project to be conducted along Phillips's Sweeny-Pasadena
system in Texas.
Company History and Record
Phillips Pipe Line Company is headquartered in Bartlesville,
[[Page 36025]]
Oklahoma, and employs over 580 people and operates and maintains
approximately 7500 miles of pipelines in 9 states. Phillips transports
approximately 750,000 barrels of crude oil, refined products,
petrochemicals, and natural gas liquids each day.
Before entering into consultations with Phillips, OPS determined
that Phillips 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 Project goals.
In December 1992, during an excavation project, a contract
equipment operator punctured a pipeline operated by Phillips in Aurora,
Colorado. This accident resulted in a release of 1,665 barrels of
natural gas liquids, injuring six people. Because of concerns raised by
OPS over company procedures, Phillips developed a risk based approach
to improve the safety of pipeline excavations and implemented an
Excavation Risk Assessment process. Lessons learned from this incident
as well as other company and industry incidents led Phillips to the
development and implementation of a formal risk management program.
This event was also a major driver behind the development of the
Phillips Excavation Risk Assessment Process which is a focal point of
its proposed demonstration project.
Consultative Evaluation
During the consultations, representatives from OPS headquarters and
Southwest Region, pipeline safety officials from Texas, and risk
management experts met with Phillips to discuss Phillips's overall risk
management process. This included discussion of Phillips's risk
assessment, risk analyses, and risk control processes and tools, its
performance measures, and the philosophy and administration of risk
management within the company. This also included a discussion of
Phillips's excavation risk assessment process, including a review of
the proposed demonstration project activities; population, terrain, and
infrastructure along the affected pipelines; 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 an Appendix to this
notice.
The consultation process focused on three major review criteria:
1. Whether Phillips's proposed risk management demonstration
project is consistent with the Risk Management Program Standard and
compatible with the Guiding Principles set forth in that Standard;
2. Whether Phillips's proposed risk management demonstration
project is expected to produce superior safety, environmental
protection, and reliability of service;
3. Whether Phillips's proposed risk management demonstration
project includes a company work plan and a performance monitoring plan
that will provide adequate assurance that superior safety,
environmental protection, and service reliability are being achieved.
Once OPS and Phillips consider and address comments received on
this notice and environmental assessment, OPS plans to issue an Order
approving the Phillips demonstration project.
3. Statement of Project Goals
Phillips has been managing risk on its pipeline systems using a
combination of personnel knowledge and experience, as well as Phillips
and industry-wide operating data for many years. In 1995, Phillips
Petroleum Company (Phillips's corporate parent) created the Process for
Safety and Environmental Excellence (PSEE) to achieve a more
consistent, formalized approach to ensuring the safe and
environmentally responsible operation of its facilities. Within the
framework of the PSEE, Phillips has implemented a formal risk
management program. Formalizing Phillips's risk management program has
involved developing more sophisticated tools to comprehensively
identify and evaluate the most important risks associated with the
design, construction, operation, and maintenance of Phillips's pipeline
systems. Phillips is evaluating all of its pipelines using these tools,
to identify the nature and location of the most significant risks.
During this demonstration project, Phillips will share information
about its evolving risk management program with OPS. This will enable
OPS to acquire an improved understanding of the methods and techniques
the company is using to manage risk on its system, and obtain far more
information about the company's management processes, pipeline
operations, and potential safety and environmental risks than is
normally observed during OPS inspections to ensure compliance with the
regulations.
A key element of Phillips's risk management program is a risk-based
approach to managing the risks associated with pipeline excavations.
The Phillips Excavation Risk Assessment Process is a formal, ongoing
process that has been in use system-wide since 1993 to identify and
control the unique risks associated with each excavation on or near
Phillips's pipelines. The process goes beyond the existing pipeline
safety regulatory requirements for damage prevention.
For its risk management demonstration project, Phillips proposes to
comprehensively evaluate the application and effectiveness of the
Excavation Risk Assessment Process to all company and third-party
excavations that occur on and across the pipeline segments included in
the project. Phillips's demonstration project will involve:
--requirements that an excavation risk assessment be conducted prior to
each excavation project (whether the excavation is performed by
Phillips employees or outside parties proposing to dig near Phillips's
lines);
--requirements that outside parties excavating along the Phillips
right-of-way prepare work plans and obtain Phillips's approval prior to
initiating excavation;
--increased work plan formality, level of detail, and management
approval required for higher risk excavations, including where
appropriate, coordination with local emergency response personnel;
--enhanced monitoring of excavation work;
--gathering of performance measurement data and developing a more
quantitative assessment of the benefits of performing excavation risk
assessments; and,
--enhanced communications with One-Call centers, excavators, and the
public.
Phillips and OPS expect this project to demonstrate that risk
management techniques can be successfully applied toward improving
pipeline excavation safety.
4. Demonstration Project Pipeline Segments
Phillips has proposed a 60-mile segment of two pipelines for
inclusion in its demonstration project.
Phillips's Sweeny-Pasadena products pipeline system consists of two
interstate pipelines, 12'' and 18'', that deliver refined products
(e.g., gasolines, distillates, and naphtha) from Phillips's Sweeny
Refinery in Sweeny, Texas, to Phillips's Pasadena Terminal in Pasadena
Texas. These products have varying properties and if released under
certain conditions are flammable. They could also affect human health
and the
[[Page 36026]]
environment if significant exposures occur.
The 12'' and 18'' pipelines have been in operation since 1959 and
1979, respectively. This system runs roughly Northeast from the Sweeny
Refinery to the Pasadena Terminal, passing near the northern edge of
Friendswood, Texas. The two lines parallel each other over the entire
60-mile distance. The lines run through sparsely populated areas for
about the first 45 miles and through heavily populated areas for the
last 15 miles. The lines cross the Brazos and San Bernard rivers,
several major roadways and railroad lines, and pass underneath the
Texas State Department of Corrections' Ramsey facility.
The 12'' line began service in 1956 and has a maximum operating
pressure (MOP) of 1270 psi. It has had two leaks: one in 1992 and
another in 1993. These leaks resulted in localized surface
contamination near the line. Phillips quickly detected the leaks and
stopped the release of product. The contaminated areas were
satisfactorily remediated. There were no fatalities, injuries or
adverse health effects to any member of the public or to any Phillips
employees from these events. Both of these leaks were associated with
material defects that developed because of the manufacturing process
used to bend sections of the pipe. As a result of these events,
Phillips conducted a comprehensive review of all pipe bends, that
included an internal inspection for geometric defects. All piping bends
with characteristics similar to those that had failed were replaced or
heat treated to eliminate the condition that created the leaks. The
12'' line also has some history of coating problems. To resolve this
problem, Phillips has placed additional rectifiers to provide enhanced
cathodic protection.
The 18'' line was placed in service in 1979 and has a MOP of 680
psi. The 18'' line has not had any leaks.
5. Project Description
In 1995, the Phillips Petroleum Company (Phillips Corporate)
created the Process for Safety and Environmental Excellence (PSEE) to
achieve a more consistent, formalized approach to ensuring safe and
environmentally responsible operation of its facilities. The PSEE is
designed to manage environmental, safety and health risks in a manner
that is integral to and not separate from the overall business process.
The Phillips Corporate PSEE is a comprehensive business process
applicable to every Phillips Corporate business unit (e.g., Phillips
Pipe Line Company). Within this framework, each business unit is
required to implement a formal risk management program.
As part of formalizing its risk management program for pipelines,
Phillips has identified and uses a variety of tools to identify and
manage pipeline risks. These include: hazards analysis, environmental
impact reviews, internal (pipeline) inspection tools, incident
investigations, safety, health and environmental audits, contractor
assessments, design reviews and others. To support a more integrated
evaluation of the potential risks represented by its pipelines, the
company also developed the Phillips Pipeline Risk Assessment System
(PRAS). PRAS is a computerized indexing model that predicts the
relative risk different pipe segments represent based on numerous
factors that influence the likelihood and consequences of pipeline
failure. The model synthesizes data and information on pipe design,
operation, maintenance, pipe condition, population and activity near
the line, and external environmental conditions. PRAS has been in use
since 1995 and has been applied to all of Phillips's regulated pipeline
systems (approximately 5500 miles of pipe). During the course of the
demonstration project, Phillips will be enhancing PRAS, and evaluating
improved approaches to integrate the PRAS results with the output from
the other tools noted previously to comprehensively and consistently
assess risks across its pipeline.
During this demonstration project, Phillips will share information
about its evolving risk management program with OPS.
This will enable OPS to improve its understanding of the methods
and techniques the company is using to manage risk on its system, and
obtain far more information about the company's management processes,
pipeline operations, and potential safety and environmental risks than
is normally observed during OPS regulatory compliance inspections.
The primary focus of Phillips's proposed demonstration project is
to reduce pipeline risks resulting from excavations on or near
Phillips's pipelines. Phillips hopes to demonstrate superior risk
control and risk reduction mechanisms by applying its Excavation Risk
Assessment Process. This process includes specific procedures relative
to pipeline excavations and requires that an excavation site inspection
and risk assessment be conducted prior to each excavation project. A
risk assessment matrix is used to assess the potential risks associated
with each excavation project. This matrix examines various risk factors
for each excavation, including nearby population density, the presence
of roads and railways, the existence of other utilities in the vicinity
of the pipeline, the type of excavation equipment being used, and the
properties of the product in the pipeline.
Phillips uses a graded approach based on combinations of risk
factors to evaluate the level of Phillips's project review and
approvals required for the excavation plan.
Phillips plans to communicate the details, progress, and results of
the demonstration project, both externally and internally. Internally,
Phillips will implement a formal communication program for company
personnel involved with the demonstration project. Phillips will also
implement excavation risk assessment refresher training prior to the
start of the project, that will include the demonstration project
communication plans and performance measures to be monitored and
tracked during the project.
Externally, Phillips will contact the affected local emergency
planning committees (LEPCs) at the beginning of the demonstration
project to communicate the details of the project and to identify how
Phillips will communicate progress and results during the project.
Phillips will also contact city and county planning committees for the
towns that the demonstration segments cross to communicate Phillips's
excavation requirements. Phillips will conduct surveys regarding the
effectiveness and benefits of its excavation risk management process.
Phillips also plans to seek input from contractors and developers
involved during the demonstration project to help determine the cost
effectiveness for the level of safety achieved. They plan to
communicate throughout the project with OPS, the Texas Railroad
Commission, city and county planning committees, affected LEPCs, and
contractors and developers.
Phillips's intended approach to performance monitoring of the
project will include formal data collection and performance measures
related to excavations along the demonstration segments. Phillips has
proposed an initial set of performance metrics for the project and has
an excavation risk assessment data collection worksheet to generate
data and information relative to these metrics. Phillips's proposed
performance metrics include:
total number of one-call requests
total number of excavation projects broken down by
--Phillips's excavation projects (planned and unplanned),
[[Page 36027]]
--third party excavations planned, and
--other, unplanned excavation activities.
initial and final risk ranking of each excavation that
required a formal risk assessment
level of approval obtained to complete the excavation
number and type of risk control activities implemented
number of excavations completed, changed, or terminated
categorization and characterization of the number of
excavations by
--successful excavation (i.e., no damage)
--damage incurred,
--damage resulting in a leak, and
--effectiveness of emergency response plans to a leak.
6. Regulatory Perspective
Why Is OPS Considering This Project?
The OPS Project Review Team evaluated Phillips's proposed project
according to review protocols and criteria. OPS has concluded the
Phillips project will:
1. Provide superior safety and environmental protection for the
pipeline segments proposed for the demonstration project; and
2. Offer a good opportunity to evaluate risk management as a
component of the Federal pipeline safety regulatory program.
Phillips is not proposing any alternative to or requesting any
regulatory exemption from existing pipeline safety regulations in this
demonstration project. Rather, Phillips's proposed project goes beyond
the regulations and is considered to provide superior protection.
Phillips's proposed project offers a good opportunity to evaluate
risk management as a component of the Federal pipeline safety
regulatory program. It also provides an opportunity to evaluate a risk-
based pipeline damage prevention methodology that could have broad
potential application. The damage prevention focus could also offer
benefits to the current joint government/industry initiative on damage
prevention education.
While the overall safety record for pipeline transportation is
excellent, third party damage still presents a significant problem.
Education on damage prevention is essential to reducing the incidence
of third-party damage to underground facilities. OPS is currently
sponsoring a joint government and industry Damage Prevention Quality
Action Team to evaluate how to best utilize education resources to
prevent pipeline damage. Phillips's proposed demonstration project is
consistent with OPS's goals concerning pipeline damage prevention. The
potential synergies between the Phillips project and the Damage
Prevention Quality Action Team should enhance the benefits from both
efforts.
OPS believes the Demonstration Program could benefit from
Phillips's participation, given some of the distinguishing features of
its proposed demonstration project, including:
--An emphasis on improving damage prevention and emergency response
coordination;
--Plans for concentrated public outreach and risk communications
efforts;
--A good illustration of how companies can use excavation risk
management to improve safety without seeking to reduce costs incurred
by existing regulations;
--Phillips's willingness to share information with OPS and state
pipeline safety agencies on the specific risks associated with the
demonstration line segments and the Company's overall risk management
program and processes. This additional information will allow OPS to
more effectively ensure safe operation, and help OPS understand how
risk management might be employed to supplement the existing regulatory
framework.
How Will OPS Oversee This Project?
The demonstration segments will be subject to routine OPS
inspection to ensure compliance with the applicable Federal pipeline
safety regulations. Additionally, the Demonstration Project will be
monitored by a Project Review Team (PRT) consisting of OPS headquarters
and regional staff, and state pipeline safety officials. The PRT is
designed to implement 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 PRT's primary functions will be to conduct periodic risk
management audits. These audits will ensure Phillips's compliance with
the specific terms and conditions of the OPS Order authorizing
Phillips's demonstration project, and will be performed in addition to
the normal OPS inspections. OPS is developing a detailed audit plan,
tailored to the unique requirements of Phillips's demonstration
project. This plan will describe the audit process (e.g., types of
inspections, methods, and their frequency), as well as the specific
requirements for reporting information and performance measure data to
OPS.
Phillips is not requesting any regulatory exemptions, and OPS
retains full authority to administer and enforce all regulations
governing pipeline safety.
Information Provided to the Public
OPS has previously provided information to the public about the
Phillips project, and has requested public comment, using many
different sources. OPS aired several electronic ``town meetings''
enabling viewers of the two-way live broadcasts to pose questions and
voice concerns about candidate companies (including Phillips). An
earlier Federal Register notice (62 FR 53052; October 10, 1997)
informed the public that Phillips 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, 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 Phillips.
At a November 19, 1997, public meeting OPS hosted in Houston, TX,
Phillips 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, and March 26, 1998.)
OPS has provided a prospectus, which includes a map of the
demonstration segments, to State officials and community
representatives who may be interested in reviewing project information,
providing input, or monitoring the progress of the project. At this
point, OPS has received no public comment on the Phillips's proposal.
This notice is the last public comment opportunity prior to
approval of Phillips's demonstration project.
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
[[Page 36028]]
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 Phillips Pipe Line Company's (Phillips) proposed
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
OPS intends to approve Phillips as a participant in the Pipeline
Risk Management Demonstration Program. Phillips has proposed a 60-
mile segment of two pipelines for inclusion in its demonstration
project. Phillips's Sweeny--Pasadena products pipeline system
consists of two interstate pipelines, 12'' and 18'', that deliver
refined products (e.g., gasolines, distillates, and naphtha) from
Phillips's Sweeny Refinery in Sweeny, Texas, to Phillips's Pasadena
Terminal in Pasadena Texas. As the primary focus of its risk
management demonstration project, Phillips proposes to
comprehensively evaluate the application and effectiveness of its
Excavation Risk Assessment Process to all company and third-party
excavations that occur on and across the pipeline segments included
in the project. OPS believes the Phillips demonstration project will
provide superior safety and environmental protection by applying
excavation risk control measures that exceed regulatory
requirements.
In 1995, the Phillips Petroleum Company (Phillips Corporate)
created the Process for Safety and Environmental Excellence (PSEE)
to achieve a more consistent, formalized approach to ensuring safe
and environmentally responsible operation of its facilities. The
PSEE is designed to manage environmental, safety and health risks in
a manner that is integral to and not separate from the overall
business process. The Phillips Corporate PSEE is a comprehensive
business process applicable to every Phillips Corporate business
unit (e.g., Phillips Pipe Line Company). Within this framework, each
business unit is required to implement a formal risk management
program.
As part of formalizing its risk management program for
pipelines, Phillips has identified and uses a variety of tools to
identify and manage pipeline risks. These include: hazards analysis,
environmental impact reviews, internal (pipeline) inspection tools,
incident investigations, safety, health and environmental audits,
contractor assessments, design reviews and others. To support a more
integrated evaluation of the potential risks represented by its
pipelines, the company also developed the Phillips Pipeline Risk
Assessment System (PRAS). PRAS is a computerized indexing model that
predicts the relative risk different pipe segments represent based
on numerous factors that influence the likelihood and consequences
of pipeline failure. The model synthesizes data and information on
pipe design, operation, maintenance, pipe condition, population and
activity near the line, and external environmental conditions. PRAS
has been in use since 1995 and has been applied to all of Phillips's
regulated pipeline systems (approximately 5500 miles of pipe).
During the course of the demonstration project, Phillips will be
enhancing PRAS and evaluating improved approaches to integrate the
PRAS results with the output from the other tools noted previously
to comprehensively and consistently assess risks across its
pipeline.
During this demonstration project, Phillips will share
information about its evolving risk management program with OPS.
This will enable OPS to improve its understanding of the methods and
techniques the company is using to manage risk on its system, and to
obtain far more information about the company's management
processes, pipeline operations, and potential safety and
environmental risks than is normally observed during OPS regulatory
compliance inspections.
A key element of Phillips's risk management program, and the
primary focus of Phillips's proposed demonstration project, is a
risk-based approach to managing the risks associated with pipeline
excavations. The Phillips Excavation Risk Assessment Process is a
formal, ongoing process that has been in use system-wide since 1993
to identify and control the unique risks associated with each
excavation on or near Phillips's pipelines. The process goes beyond
the existing pipeline safety regulatory requirements for damage
prevention.
The Phillips Excavation Risk Assessment Process includes
specific procedures relative to pipeline excavations and requires
that an excavation site inspection and risk assessment be conducted
prior to each excavation project. A risk assessment matrix is used
to assess the potential risks associated with each excavation
project. This matrix examines various risk factors for each
excavation, including nearby population density, the presence of
roads and railways, the existence of other utilities in the vicinity
of the pipeline, the type of excavation equipment being used, and
the properties of the product in the pipeline. Phillips uses a
graded approach based on combinations of risk factors to evaluate
the level of Phillips's project review and approvals required for
the excavation plan.
For its risk management demonstration project, Phillips proposes
to comprehensively evaluate the application and effectiveness of the
Excavation Risk Assessment Process to all company and third-party
excavations that occur on and across the pipeline segments included
in the project. Phillips's demonstration project will involve:
--requirements that an excavation risk assessment be conducted prior
to each excavation project (whether the excavation is performed by
Phillips's employees or outside parties proposing to dig near
Phillips's lines);
--requirements that outside parties excavating along the Phillips
right-of-way prepare work plans and obtain Phillips's approval prior
to initiating excavation;
--increased work plan formality, level of detail, and management
approval required for higher risk excavations, including where
appropriate, coordination with local emergency response personnel;
--enhanced monitoring of excavation work;
--gathering of performance measurement data and developing a more
quantitative assessment of the benefits of performing excavation
risk assessments; and,
--enhanced communications with One-Call centers, excavators, and the
public.
Phillips plans to communicate the details, progress, and results
of the demonstration project, both externally and internally.
Internally, Phillips will implement a formal communication program
for company personnel involved with the demonstration project.
Phillips will also implement excavation risk assessment refresher
training prior to the start of the project, that will include the
demonstration project communication plans and performance measures
to be monitored and tracked during the project.
Externally, Phillips will contact the affected local emergency
planning committees (LEPCs) to communicate the details of the
project and to identify how Phillips will communicate progress and
results during the project. Phillips will also contact city and
county planning committees for the towns that the demonstration
segments cross to communicate Phillips's excavation requirements.
Phillips will conduct surveys on the excavation risk management
process effectiveness. Phillips plans to communicate throughout the
project with OPS, the Texas Railroad Commission, city and county
planning committees, affected LEPCs, and contractors and developers.
Phillips's intended approach to performance monitoring of the
project will include formal data collection and performance measures
related to excavations along the demonstration segments. Phillips
has proposed an initial set of performance metrics for the project
and has an excavation risk assessment data collection worksheet to
generate data and information relative to these metrics. Phillips's
proposed performance metrics include:
total number of one-call requests
total number of excavation projects broken down by
--Phillips excavation projects (planned and unplanned),
--third-party excavations planned, and
--other, unplanned excavation activities.
initial and final risk ranking of each excavation that
required a formal risk assessment
level of approval obtained to complete the excavation
number and type of risk control activities implemented
[[Page 36029]]
number of excavations completed, changed, or terminated
categorization and characterization of the number of
excavations by
--successful excavation (i.e., no damage),
--damage incurred,
--damage resulting in a leak, and
--effectiveness of emergency response plans to a leak.
Phillips and OPS expect this project to demonstrate that risk
management techniques can be successfully applied toward improving
pipeline excavation safety. During this demonstration project,
Phillips will share information about its evolving risk management
program with OPS. This will enable OPS to acquire an improved
understanding of the methods and techniques the company is using to
manage risk on its system, and obtain far more information about the
company's management processes, pipeline operations, and potential
safety and environmental risks than is normally observed during OPS
regulatory compliance inspections.
OPS intends to approve Phillips as a participant in the Pipeline
Risk Management Demonstration Program. OPS believes the Phillips
demonstration project will provide superior safety by applying
excavation risk control measures that exceed regulatory
requirements.
Phillips is not requesting any regulatory exemptions, and OPS
retains full authority to administer and enforce all regulations
governing pipeline safety. The demonstration segments will be
subject to routine OPS inspection to ensure compliance with the
applicable Federal Pipeline Safety Regulations. Additionally, the
Demonstration Project will be monitored by a Project Review Team
(PRT) consisting of OPS headquarters and regional staff and state
pipeline safety officials. The PRT is designed to implement 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 PRT's primary functions will be to conduct periodic
risk management audits. These audits will ensure Phillips's
compliance with the specific terms and conditions of the OPS Order
authorizing Phillips's demonstration project, and will be performed
in addition to the normal OPS inspections. OPS is developing a
detailed audit plan, tailored to the unique requirements of
Phillips's demonstration project. This plan will describe the audit
process (e.g., types of inspections, methods, and their frequency),
as well as the specific requirements for reporting information and
performance measure data to OPS.
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.
On July 21, 1997, Phillips Pipe Line Company 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 Phillips's proposal will provide superior
safety and environmental protection, and is prepared to finalize the
agreement with Phillips on the provisions for the demonstration
project.
D. Alternatives Considered
OPS has considered three alternatives: approval of the Phillips
risk management demonstration project as proposed in Phillips's
application; denial of the Phillips demonstration project; or
approval of the project with certain modifications to Phillips's
application.
OPS's preferred alternative is to approve the Phillips
demonstration project as proposed in Phillips's application. OPS is
satisfied that the proposal provides superior protection for the
demonstration project segments and the surrounding environment. The
Phillips Excavation Risk Assessment Process provides a higher level
of protection than exists under the current regulatory requirements.
Phillips is not requesting any regulatory exemptions and OPS retains
full authority to administer and enforce all regulations governing
pipeline safety. The demonstration segments will be subject to
routine OPS inspection to ensure compliance with the applicable
Federal Pipeline Safety Regulations. OPS and Phillips will monitor
and, if necessary, improve the effectiveness of the risk control
activities throughout the demonstration period.
Denial of the project would result in OPS's considerable loss of
valuable information concerning the effectiveness of the proposed
methodology for assessing and controlling excavation risks and
reducing third-party damage. 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 aforementioned
Presidential Directive.
All of the issues raised by OPS, state pipeline safety
officials, stakeholders, and the public about Phillips's proposed
project have been discussed within the consultative process,
resolved to OPS's satisfaction, and reflected in Phillips's
application. Therefore, OPS does not believe that modifications to
Phillips's application are required.
E. Affected Environment and Environmental Consequences
The 12'' and 18'' Sweeny--Pasadena pipelines proposed for this
demonstration project transport refined products (e.g., gasolines,
distillates, and naphtha) from Phillips's Sweeny Refinery to
Phillips's Pasadena Terminal in Pasadena, Texas. These products are
stable, flammable liquids. Product spills could result in the
accumulation of highly flammable, heavier than air vapors in low
areas. These vapors could also spread along the ground away from the
spill site and could ignite. The resulting fire could create
localized damage in the vicinity of the release. These products form
carbon oxides and various hydrocarbons which are dispersed into the
atmosphere when burned. These products will float on water (their
solubility in water is negligible), and large spills have been known
to result in kills of fish and other aquatic life.
However, it should be noted that the transport of these products
is already protected by all existing, applicable pipeline safety
regulations and safe industry practices, which have contributed to a
good pipeline industry safety record. The proposed risk management
measures are intended to improve upon this safety record.
The Sweeny-Pasadena system pipelines have been in operation
since 1959 and 1979, respectively. This system runs roughly
Northeast from the Sweeny Refinery to the Pasadena Terminal, passing
near the northern edge of Friendswood, Texas. The lines parallel
each other over the entire 60-mile distance to be included in the
demonstration project. The lines run through sparsely populated
areas for about the first 45 miles and through heavily populated
areas for the last 15 miles. The lines cross the Brazos and San
Bernard rivers, several major roadways and railroad lines, and pass
underneath the Texas State Department of Corrections' Ramsey
facility.
Both of these lines have a good leak history. The 12'' line
began service in 1956 and has a maximum operating pressure (MOP) of
1270 psi. It has had two leaks: one in 1992 and another in 1993.
These leaks resulted in localized surface contamination near the
line. Phillips quickly detected the leaks and stopped the release of
product. The contaminated areas were satisfactorily remediated.
There were no fatalities, injuries or adverse health effects to any
member of the public or to any Phillips employee from these events.
Both of these leaks were associated with material defects that
developed because of the manufacturing process used to bend sections
of the pipe. As a result of these events, Phillips conducted a
comprehensive review of all pipe bends, that included an internal
inspection for geometric defects. All piping bends with
characteristics similar to those that had failed were replaced or
heat treated to eliminate the condition that created the leaks. The
12'' line also has some history of coating problems. To resolve this
problem, Phillips has placed additional rectifiers to provide
enhanced cathodic protection.
The 18'' line was placed in service in 1979 and has a MOP of 680
psi. The 18'' line has not had any leaks.
[[Page 36030]]
The OPS Project Review Team carefully reviewed Phillips's
proposed excavation risk management activities and concluded that
superior protection would be provided for the pipeline systems
during the demonstration project. The Phillips Excavation Risk
Assessment Process goes beyond the existing regulations in providing
additional assurance of safety. OPS has concluded that the enhanced
risk control activities will reduce the likelihood of pipeline
accidents and leaks, especially those resulting from third party
damage. Should a leak or rupture occur, the enhanced communication
efforts should improve the responsiveness of company and local
officials to an event, and diminish the consequences of any such
leak or rupture. In summary, based on expected reductions in both
the likelihood and consequences of leaks and ruptures, OPS has
concluded that the proposed risk control activities will clearly
reduce safety and environmental risks.
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 along the demonstration project lines. The
pipeline segments proposed for the project are routed mostly through
rural, sparsely populated areas, but include about 15 miles of
pipeline which runs through industrial and developing residential
areas. A mixture of income levels resides along the segments.
The risk control activities provide greater protection than mere
compliance with existing regulations. Because the proposed risk
management activities will be applied uniformly along the lines,
residents and communities near the lines will be afforded greater
protection, 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 along the demonstration
segments.
G. Information Made Available to States, Local Governments, (and)
Individuals
OPS has recently (in January and February 1998) made the
following documents publicly available, and incorporates them by
reference into this environmental assessment:
(1) ``Demonstration Project Prospectus: Phillips Pipe Line
Company'', June, 1998, available by contacting Elizabeth M. Callsen
at 202-366-4572. Includes maps of the demonstration segments.
Purpose is to reach the public, local officials, and other
stakeholders, and to solicit their input about the proposed project.
Mailed to over 500 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) ``Phillips Pipe Line Company--Application for DOT-OPS Risk
Management Demonstration Program'', available in Docket No. RSPA-98-
3982 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 Phillips
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
Phillips project, and has requested public comment, using many
different sources. OPS aired several electronic broadcasts reporting
on demonstration project proposals, including Phillips's proposal.
An earlier Federal Register notice (62 FR 53052; October 10, 1997)
informed the public that Phillips 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 project candidates,
including Phillips.
At a November 19, 1997, public meeting OPS hosted in Houston,
TX, Phillips 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, and on
March 26, 1998. This broadcast is available on demand via the OPS
website at http://ops.dot.gov/tmvid.htm.) No issues or concerns
about Phillips's proposal have been raised.
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
James C. Thomas (retired), OPS/U.S. Department of Transportation
Linda Daugherty, OPS/U.S. Department of Transportation
Carl Griffis, OPS/U.S. Department of Transportation
Anne Marie Joseph, OPS/U.S. Department of Transportation
Rod Seeley, OPS/U.S. Department of Transportation
Bruce Hansen, OPS/U.S. Department of Transportation
Elizabeth Callsen, OPS/U.S. Department of Transportation
Mary McDaniel, Gas Services Division, Railroad Commission of Texas
Jim vonHerrmann, Cycla Corporation (consultant)
Robert Brown, Cycla Corporation (consultant)
Herb Wilhite, Cycla Corporation (consultant)
Persons/Agencies Receiving Briefings/Project Prospectus/Requests
for Comment
Regional Response Team (RRT), Region 6, 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: Charles Gazda, EPA Region 6 and Cdr. Ed Stanton, Coast Guard
8th District).
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. 98-17493 Filed 6-30-98; 8:45 am]
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