PIPELINE  AND  HAZARDOUS  MATERIALS  SAFETY  ADMINISTRATION  UNITED  STATES  DEPARTMENT  OF  TRANSPORTATION  

WASHINGTON,  DC    

Docket  No.  PHMSA-­‐2011-­‐0023  Notice  of  Proposed  Rulemaking  

Pipeline  Safety:  Safety  of  Gas  Transmission  and  Gathering  Pipelines    

COMMENTS  OF  THE  PLASTICS  PIPE  INSTITUTE  

 

The  Plastics  Pipe  Institute  (PPI)  is  the  leading  trade  association  representing  more  than  300  members  and  associates  involved  in  the  use  of  plastic  pipe  in  our  nation’s  infrastructure  including:  plastic  piping  system  manufacturers,  resin  producers,  and  plastic  equipment  manufacturers.  Many  of  the  members  produce  plastic  pipe,  fittings,  and  components  used  in  our  nation’s  natural  gas  distribution  network,  and  for  a  wide  range  of  oil  &  gas  gathering  applications.  Today  polyethylene  (PE)  and  polyamide  (PA)  piping  represents  more  than  95%  of  all  newly  installed  gas  distribution  piping.  HDPE,  PA  and  advanced  spoolable  composite  piping  represent  a  large  portion  of  the  oil  &  gas  gathering  market  in  North  America.  The  manufacturers  and  products  represented  by  PPI  have  a  long,  proven  history  of  successful  service  in  oil  and  gas  gathering  applications  and  provide  the  following  advantages:  

• No  corrosion  -­‐  Corrosion  in  steel  pipelines  is  becoming  a  more  common  problem  for  many  operators  with  even  greater  environmental  and  cost  consequences.  HDPE,  PA,  and  Spoolable  composite  pipelines  are  much  less  susceptible  to  corrosion.  

• Rapid  Installation  -­‐  Unlike  conventional  steel  piping  systems  that  are  assembled  at  location  from  large  quantities  of  straight  lengths  that  must  be  short  enough  to  fit  on  a  truck  bed,  PE,  PA,  and  spoolable  composite  pipe  is  manufactured  in  long  lengths  that  result  in  rapid  installation  and  completion.    

• Improved  Safety  -­‐  Pipe  coils  are  lightweight  and  require  little  handling  at  the  location.  The  reduction  of  connections  means  little  time  spent  in  the  ditch.  With  the  reduced  manpower  requirement  and  rapid  completion,  operators  see  vastly  reduced  safety  risks.  

• Heat  fused  or  drastically  reduced  number  of  connections  –  PE  and  PA  pipe  may  be  joined  by  heat  fusion  providing  a  reliable,  leak-­‐free  connection.  With  spoolable  composites  lengths  up  to  5,000  ft  there  are  often  no  connectors,  and  for  longer  lengths  relatively  few  connections  are  required  virtually  eliminating  the  potential  for  these  types  of  leaks.  

• Improved  Flow  Characteristics  -­‐  thermoplastic  materials  provide  better  flow  characteristics  than  new  steel  pipe.  Thermoplastics  do  not  deteriorate  in  service,  retaining  these  flow  characteristics  for  the  life  of  the  pipe,  unlike  steel  where  typically  designers  have  to  allow  for  degrading  flow  characteristics  in  service.  

• Remediation  of  Leaking  Existing  Pipelines  –  HDPE,  PA,  and  spooled  composite  pipe  is  frequently  pulled  into  existing  pipelines  as  a  rapid,  low  cost  method  for  returning  a  line  to  full  or  even  

   

 

             

 

increased  operating  pressure.  There  is  minimal  ground  or  right  of  way  disturbance,  and  no  reliance  on  the  structural  integrity  of  the  existing  failed  line,  which  is  used  only  as  a  convenient  conduit.  Many  miles  of  failed  pipeline  have  been  remediated  and  returned  to  full  service  by  this  technique.  

 

PPI  opposes  any  changes  to  the  49  C.F.R.  part  192  that  may  hinder  or  eliminate  the  use  of  PE,  PA,  or  spoolable  composite  piping,  thereby,  reducing  the  overall  safety  of  the  gas  gathering  systems  and  discourage  the  use  of  new  technologies.  

PPI  supports  the  efforts  of  PHMSA  to  update  CFR  49  part  192  to  reflect  changes  in  gas  transmission  and  gathering  included  in  this  notice  of  proposed  rulemaking  (NPRM),  but  the  NPRM  is  overly  ambitious,  lacks  proper  industry  involvement,  and  does  not  adequately  address  associated  costs  to  the  industry.  PPI  encourage  PHMSA  to  consider  finalizing  only  those  portions  of  the  NPRM  that  are  not  controversial,  and  then  continue  to  work  with  the  regulated  community  and  the  public  on  addressing  the  more  difficult  proposed  changes,  or  withdraw  those  that  do  not  meet  industry  standards.  

Many  areas  of  the  NPRM  require  further  clarification,  and  PPI  provides  suggested  language  where  necessary.  The  following  comments  are  submitted  on  behalf  of  PPI.  

§  192.3  Definitions  

PPI  believes  that  API  RP  80  is  a  useful  recommended  practice  developed  through  a  consensus  American  National  Standards  Institute  (ANSI)-­‐accredited  standards  process.  PPI  respectfully  requests  that  PHMSA  continue  to  utilize  API  RP  80  for  the  purpose  of  establishing  where  production  ends  and  where  gathering  begins  and  ends.  

§  192.8  How  are  onshore  gathering  lines  and  regulated  onshore  gathering  lines  determined?  

PPI  strongly  opposes  the  extension  of  existing  regulatory  requirements  for  Type  B  gathering  lines  to  Type  A,  Area  2  gathering  lines  in  Class  1  locations,  if  the  nominal  diameter  of  the  line  is  8”  or  greater  for  non-­‐metallic  materials.    This  proposed  extension  of  the  regulations  is  arbitrary,  conflicts  with  other  portions  of  49  CFR  Part  192,  and  creates  onerous  requirements  for  gas  gathering  operators.    

New  Type  A,  Area  2  classification  is  Arbitrary  

The  selection  of  8  inches  as  the  cutoff  for  large  diameter  is  arbitrary.  No  justification  is  provided  for  selecting  this  dimension  as  the  cutoff  point.  HDPE  up  to  36  inches  in  diameter  is  used  in  gas  gathering  applications.  In  fact,  more  than  60%  of  the  HDPE  used  in  class  1  gas  gathering  applications  is  8  inches  or  larger.  HDPE  is  designed  on  a  standard  dimension  ratio  to  ensure  that  its’  properties  are  consistent  across  dimensions.    The  dimension  used  to  define  the  cutoff  between  small  dimension  and  large  dimension  requires  additional  study.  

   

 

             

 

Conflicts  with  other  sections  of  the  Code  

The  proposed  Type  A,  Area  2  gathering  lines  applies  to  pipe  8  inch  in  diameter  or  greater,  operating  at  125  psig  or  higher.  The  proposed  changes  would  make  certain  class  1  applications  regulated  thereby  invoking  current  design  rules  (intended  for  class  3  and  4  gas  distribution)  and  limitations  on  plastic  piping  that  are  in  conflict.  

-­‐ §192.123  limits  the  maximum  operating  pressure  for  PE  to  125  psi  while  the  new  regulation  is  applies  to  non-­‐metallic  operating  at  125  psi  or  higher.  This  effectively  means  that  no  PE  of  8  inches  in  diameter  or  greater  could  be  used  in  Type  A,  Area  2    

-­‐ Currently  PA-­‐11  is  limited  in  size  to  4  inches  in  diameter  in  §192.123  so  the  new  regulations  would  not  apply  to  these  products  

-­‐ Spoolable  composite  pipes  are  considered  non-­‐metallic.  These  products  are  commonly  used  in  class  1  gathering  applications,  but  are  not  currently  recognized  in  49  CFR  Part  192  for  regulated  applications.  

 

Requirements  are  unduly  onerous  

This  rule  would  effectively  limit  the  use  of  PE  over  8  inches  in  diameter  to  gas  gathering  applications  with  a  maximum  operating  pressure  of  less  than  125  psig  or  require  the  use  of  larger  diameter  pipe  to  provide  the  same  gas  flow  at  the  lower  pressures.  Many  (50%  of  the  total  HDPE  gathering  market)  large  dimension  PE  gas  gathering  systems  in  operation  today  operate  successfully  at  pressures  above  125  psig  designed  using  the  design  equation  with  a  design  factor  of  0.63.  

PPI  believes  the  proposed  rule  to  regulate  Onshore  Gathering  Lines  Type  A,  Non-­‐Metallic,  Area  2  (class  1  locations  with  a  nominal  diameter  of  8  inches  or  greater)  with  an  MAOP  more  than  125  psig  will  have  a  dramatic  cost  impact  to  gas  gathering  pipeline  operators.  PPI  estimates  that  the  design  pressure  limitation  annual  compliance  cost  to  the  industry  to  be  approximately  $140  MM.          

By  regulating  Type  A,  Area  2,  class1  non-­‐metallic  materials  Section  §192.59  is  invoked  and  states  that  rework  or  regrind  material  is  not  allowed  in  plastic  pipe  produced  after  March  6,  2015.  It  is  a  common  industry  practice  in  the  gas  gathering  to  use  HDPE  with  up  to  30%  clean  rework  material.  The  imposition  of  no  rework  or  regrind  material  in  gas  distribution  has  already  caused  significantly  increased  costs  for  manufacturers.  Extension  of  those  requirements  in  gas  gathering  would  have  a  large  financial  impact  to  manufacturers,  hence  operators,  and  would  be  done  with  no  technical  justification.  PPI  estimates  that  this  rulemaking  would  increase  costs  by  more  than  $37  MM  annually  due  to  the  restriction  on  rework.  (See  analysis  in  Appendix  A).  

Overall  more  than  1,000  miles  of  8  inch  and  larger  PE  pipe  is  installed  for  gas  gathering  applications  annually.  We  estimate  the  total  annual  compliance  costs  for  the  industry  to  be  over  $177  million.    This  is  above  the  $100  million  threshold  and  we  believe  would  pose  undue  burden  on  industry  operators  and  

   

 

             

 

would  require  further  regulatory  review  by  Office  of  Management  and  Budget  (OMB).    The  costs  were  determined  based  on  PPI  statistical  data  for  gas  gathering  pipelines  with  the  following  assumptions:  

·∙                  We  estimate  the  newly  regulated  lines  to  be  at  least  30%  of  the  total  industry  reported  energy  piping  sales.  We  estimate  that  at  least  50%  of  the  gathering  pipes  are  designed  with  an  MAOP  equal  to  the  maximum  design  pressure  based  on  PE4710  design  factor  (DF)  of  0.63  

·∙                  To  achieve  equivalent  gas  flow  with  the  125  psig  design  pressure  limitation  for  regulated  thermoplastic  pipes,  the  NPRM  will  require  PE  pipes  currently  designed  to  SDR  13.5  or  lower  to  be  upsized  or  switched  to  other  more  expensive  materials  

·∙                  The  total  cost  of  eliminating  rework  is  at  least  $0.30/lb  which  will  be  passed  through  to  industry  operators  

·∙                  Industry  cost  for  eliminating  rework  is  based  on  the  large  volume  of  rework  that  will  have  to  be  sold  in  lower  resin  cost  markets  and  to  scrap  recyclers  

The  additional  engineering,  procurement,  and  construction  costs  associated  with  these  newly  regulated  lines  are  not  part  of  this  analysis.      Therefore,  it  is  anticipated  that  the  total  annual  compliance  costs  for  the  industry  will  far  exceed  the  $177  million.  

As  noted  in  the  NPRM  preamble,  the  GAO  released  a  report  (GAO  Report  14-­‐667)  to  address  the  increased  risk  posed  by  new  gathering  pipeline  construction  in  shale  development  areas.  GAO  recommended  that  a  rulemaking  be  pursued  for  gathering  pipeline  safety  that  addresses  the  risks  of  larger-­‐diameter,  higher-­‐pressure  gathering  pipelines,  including  subjecting  such  pipelines  to  emergency  response  planning  requirements  that  currently  do  not  apply.  The  intent  of  this  code  change  was  to  regulate  larger  diameter,  high-­‐pressure  gathering  lines,  not  to  eliminate  a  widely  used  material  from  those  applications.  While  onerous,  we  can  agree  that  the  requirement  to  develop  procedures,  training,  notifications,  and  carry  out  emergency  plans  as  described  in  §  192.615  may  improve  safety,  but  the  GAO  report  recommendation  had  no  intention  of  limiting  the  materials  used  in  gas  gathering.    

Based  on  the  argument  that  this  proposed  extension  of  the  regulations  is  arbitrary,  conflicts  with  other  portions  of  49  CFR  Part  192,  and  creates  onerous  requirements  for  gas  gathering  operators,  PPI  recommends  striking  the  requirement  for  non-­‐  metallic  materials  in  Type  A,  Area  2  as  shown  below:  

 

 

 

 

   

 

             

 

Type Feature Area Safety buffer A —Metallic and the

MAOP produces a hoop stress of 20 percent or more of SMYS. If the stress level is unknown, an operator must determine the stress level according to the applicable provisions in subpart C of this part. —Non-metallic and the MAOP is more than 125 psig

Area 1. Class 2, 3, or 4 location (see § 192.5). Area 2. Class 1 location with a nominal diameter of 8 inches or greater.

None –metallic

 

Until  such  time  that  PHMSA  adopts  the  relevant  standards  and  applies  the  proper  design  formula  and  assess  the  necessary  design  limitations  for  plastic  gas  gathering,  non-­‐metallic  materials  should  be  struck  from  the  proposed  rulemaking.    

Alternative  Proposal    

In  this  NPRM  PHMSA  has  not  taken  any  steps  to  adopt  by  reference  the  most  recent  standards  relating  to  non-­‐metallic  pipelines  now  commonly  used  in  oil  &  gas  gathering  systems  including  API  15S  and  ASTM  F2619-­‐13.  As  a  result  of  this  apparent  omission,  the  NPRM  as  structured  would  indefinitely  prohibit  the  use  of  widely  used  non-­‐metallic  pipelines  in  gathering  operations  as  these  type  of  lines  are  not  intended  to  meet  all  the  current  requirements  of  Part  192.  If  PHMSA  intends  to  move  forward  with  the  new  Type  A,  Area  2  designation  for  non-­‐metallic  materials  operating  above  125  psi  with  a  diameter  of  8  inches  or  greater,  PPI  recommends  the  following  additions  to  other  parts  of  49  CFR  Part  192  to  account  for  the  new  regulated  gas  gathering  requirements  (new  sections  are  shown  in  red  text):  

§192.7      What  documents  are  incorporated  by  reference  partly  or  wholly  in  this  part?  

(5)  API  Specification  15S,  “Spoolable  Reinforced  Plastic  Line  Pipe”,  2nd  edition,  March  2016  

 (20)  ASTM/  ANSI  F2619-­‐13,  “Standard  Specification  for  High-­‐Density  Polyethylene  (PE)  Line  Pipe  ,“  (ASTM  F2619013),  IBR  approved  §  192.121(c)  

 

   

 

             

 

§192.9      What  requirements  apply  to  gathering  lines?  

(f)  For  a  plastic  pipeline  that  becomes  regulated  after  [insert  effective  date]  the  maximum  allowable  operating  pressure  is  determined  in  accordance  with  the  design  equation  in  §Part  191.121,    

(1)  the  operator  shall  monitor  the  class  locations  along  the  pipeline  as  required  by  §192.613.      If  an  increase  in  population  density  indicates  a  change  in  class  location  to  a  Class  3  or  4  the  operator  shall  confirm  or  revise  the  maximum  allowable  operating  pressure  in  accordance  with  §192.121(b)  and  §192.121(c).  

§192.59      Plastic  pipe  

 (d)  Rework  and/or  regrind  material  is  not  allowed  in  plastic  pipe  produced  after  March  6,  2015  used  under  this  part.  

(1)  paragraph  (d)  of  this  section  does  not  apply  to  plastic  pipe  used  for  gas  gathering  in  class  1  or  2  locations  

§  192.63  Marking  of  Materials.  

(2)  Except  as  provided  in  paragraph  (f)  of  this  section,  plastic  pipe  and  components  manufactured  after  [INSERT  EFFECTIVE  DATE  OF  FINAL  RULE],  must  be  marked  in  accordance  with  ASTM  F2897  (incorporated  by  reference,  see  §  192.7)  in  addition  to  the  listed  specification.  

(f)  Paragraph  (e)(2)  of  this  section  does  not  apply  to  pipe  produced  to  ASTM  F2619-­‐13  used  as  gas  gathering  lines  in  class  1  or  2  locations.  

 

§192.121  Design  of  Plastic  Pipe  (Combined  with  section  §192.123  as  proposed  in  PHMSA-­‐2014-­‐0098)  

(c)(2)  For  PE  pipe  produced  after  [INSERT  EFFECTIVE  DATE],  a  DF  of  0.40  may  be  used  in  the  design  formula,  provided:  

(i) The  design  pressure  for  plastic  pipe  may  not  exceed  the  pressure  as  determined  by  the  design  equation  in  §192.121(a);  

(ii)  The  material  designation  code  is  PE2708  or  PE4710;  

(iii)  The  pipe  has  a  nominal  size  (IPS  or  CTS)  of  24  inches  or  less;  and  

(iv)  The  wall  thickness  for  a  given  outside  diameter  is  not  less  than  that  listed  in  the  following  table:  

(d)  (2)  For  PA  pipe  produced  after  [INSERT  EFFECTIVE  DATE],  a  DF  of  0.40  may  be  used  in  the  design  formula,  provided:  

   

 

             

 

  (i)  The  design  pressure  for  plastic  pipe  may  not  exceed  the  pressure  as  determined  by  the  design     equation  in  §192.121(a)  

(3)  For  PE  pipe  produced  after  [INSERT  EFFECTIVE  DATE]  used  in  gas  gathering  lines  in  class  1  or  2  locations,  a  design  factor  of    

 (ii)     0.63  for  PE  4710  (dry  gas),  or  

(iii)     0.50  for  PE  4710  (when  more  than  2%  liquid  hydrocarbons  are  present)  

may  be  used,  provided:  

(1)  The  design  pressure  does  not  exceed  the  pressure  determined  in  §192.121  design  equation  

(2)  Plastic  pipe  may  not  be  used  where  operating  temperatures  of  the  pipe  will  be:  

(ii)  Below  −29  °F  (−20  °C),  or  −40  °F  (−40  °C)  if  all  pipe  and  pipeline  components  whose  operating  temperature  will  be  below  −29  °C  (−20  °F)  have  a  temperature  rating  by  the  manufacturer  consistent  with  that  operating  temperature;  or  

(iii)  Above  the  temperature  at  which  the  HDB  used  in  the  design  formula  under  §192.121(b)  is  determined.  

 (3)  The  material  is  a  PE  4710  as  specified  within  ASTM  F2619-­‐13  (incorporated  by  reference,  see  §192.7)  

Operators  have  used  non-­‐metallic  materials  in  constructing  gathering  lines  for  decades,  and  have  used  HDPE  in  these  applications  for  60  years.  As  the  technology  has  improved,  non-­‐metallic  lines  have  been  utilized  in  larger  diameters  and  at  higher  pressures  in  a  variety  of  operating  scenarios,  particularly  in  Class  1  locations.      

Plastic  gathering  lines  are  far  more  corrosion  resistant  to  water-­‐borne  hydrogen  sulfide,  CO2,  organic  acid  components  of  oils  and  erosion  by  produced  solids  than  nearly  any  steel  alloy  lines.  Given  that  corrosion,  erosion  and  abrasion  are  causes  of  a  majority  of  oilfield  equipment  damage,  these  products  are  some  of  the  best  corrosion  preventative  solutions  to  prevent  leaks,  spills  and  gathering  line  failures.    In  addition,  plastic  pipelines  also  sharply  reduce  cost  by  rapid  deployment  of  spooled  lines  via  surface,  plowed  or  trenched  installation.  These  pipelines  can  be  laid  in  a  fraction  of  line,  decreasing  construction  disturbances  of  urban  and  wildlife  areas.    

Issue  with  Repair  of  Existing  Lines  

Despite  the  benefits  of  plastic  pipe  for  gathering  lines,  as  a  result  of  this  proposal,  previously  installed  non-­‐metallic  material  pipe  will  become  functionally  obsolete  to  the  extent  there  is  ever  a  need  to  repair  them.  For  example,  they  will  not  be  able  to  meet  the  corrosion  requirements  found  in  Subpart  I,  given  that  the  

   

 

             

 

very  nature  of  the  material(s)  used  is  not  susceptible  to  corrosion.  This  could  cause  a  ripple  effect  through  the  gathering  industry,  causing  operators  to  cease  the  use  of  non-­‐metallics  in  pipelines  that  are  8-­‐inches  or  greater,  and  possibly  smaller.    This  will  impact  operators,  manufacturers  and  product  suppliers,  both  directly  and  indirectly,  including  increasing  the  costs  of  gathering  projects  going  forward  simply  due  to  the  use  of  steel  over  the  more  economic  and,  by  all  measure,  safe,  non-­‐metallic  materials.      

§  192.285  Plastic  pipe:  Qualifying  persons  to  make  joints  

PHMSA  has  determined  that  compliance  requires  that  pipeline  qualification  records  are  complete  and  accurate.  The  proposed  rule  would  add  a  new  paragraph  §  192.285(e)  to  require  each  operator  of  transmission  pipelines  to  make  and  retain  for  the  life  of  the  pipeline  records  demonstrating  plastic  pipe  joining  qualifications  in  accordance  with  this  section.  

  (e)  For  transmission  pipelines,  records  demonstrating  plastic  pipe  joining  qualifications  in     accordance  with  this  section  must  be  retained  for  the  life  of  the  pipeline.  

This  wording  is  unclear.  Proposed  new  wording  …  

     (e)  For  transmission  pipelines,  records  demonstrating  the  qualifications  of  persons  joining  plastic  pipe  at  the  time  of  making  those  joints  in  accordance  with  this  section  must  be  retained  for  the  life  of  the  pipeline.  

 

PPI  appreciates  the  opportunity  to  comment  on  the  above-­‐referenced  Notice  of  Proposed  Rulemaking  and  looks  forward  to  receiving  the  requested  information,  and  updates  to  the  final  rule.  

Should   you   have   any   questions   regarding   these   comments   or   about   the   PPI   in   general,   please   do   not  hesitate  to  call  me  at  763-­‐691-­‐3312  or  rknapp@plasticpipe.org.  

 

 

Respectfully  submitted,  

 

Randall  Knapp  

Director  of  Engineering  -­‐  EPSD    

   

 

             

 

Plastics  Pipe  Institute  

rknapp@plasticpipe.org      Attachment:  NPRM  PE  material  cost  analysis