WSR 03-01-064

PERMANENT RULES

UTILITIES AND TRANSPORTATION

COMMISSION

[ Docket No. TO-000712, General Order No. R-508 -- Filed December 12, 2002, 8:35 a.m. ]

     In the matter of adopting WAC 480-75-390 Valve spacing rapid shutdown, relating to hazardous liquid, gas, oil and petroleum pipeline companies -- Safety.

     1 STATUTORY OR OTHER AUTHORITY: The Washington Utilities and Transportation Commission takes this action under Notice No. WSR 02-12-132, filed with the code reviser on June 5, 2002. The commission brings this proceeding pursuant to RCW 80.01.040 and 80.04.160.

     2 STATEMENT OF COMPLIANCE: This proceeding complies with the Open Public Meetings Act (chapter 42.30 RCW), the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 43.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).

     3 DATE OF ADOPTION: The commission adopts this rule on the date that this order is entered.

     4 CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: RCW 34.05.325 requires that the commission prepare and provide to commenters a concise explanatory statement about an adopted rule. The statement must include the identification of the reasons for adopting the rule, a summary of the comments received regarding the proposed rule, and responses reflecting the commission's consideration of the comments.

     5 The commission often includes a discussion of those matters in its rule adoption order. In addition, most rule-making proceedings involve extensive work by commission staff that includes summaries in memoranda of stakeholder comments, commission decisions, and staff recommendations in each of those areas.

     6 In this docket, to avoid unnecessary duplication, the commission designates the discussion in this order as its concise explanatory statement, supplemented where not inconsistent by the staff memoranda presented at the adoption hearing and at the open meetings where the commission considered whether to begin a rule making and whether to propose adoption of specific language. Together, the documents provide a complete but concise explanation of the agency actions and its reasons for taking those actions.

     7 REFERENCE TO AFFECTED RULE: This order adopts the following section of the Washington Administrative Code: WAC 480-75-390 Valve spacing rapid shutdown.

     8 PREPROPOSAL STATEMENT OF INQUIRY AND ACTIONS THEREUNDER: The commission filed a preproposal statement of inquiry (CR-101) on August 21, 2000, at WSR 00-17-134.

     9 ADDITIONAL NOTICE AND ACTIVITY PURSUANT TO PREPROPOSAL STATEMENT: The statement advised interested persons that the commission was considering entering a rule making to amend or adopt rules for intrastate hazardous liquid pipeline companies as required by section 5, chapter 191, Laws of 2000, and to review chapter 480-75 WAC in light of standards set forth in Executive Order No. 97-02 regarding regulatory improvement.

     10 The commission also informed persons of the inquiry into this matter by providing notice of the subject and the CR-101 to all persons on the commission's list of persons requesting such information pursuant to RCW 34.05.320(3) and by sending notice to all regulated intrastate hazardous liquid pipeline companies and the commission's list of interested persons of hazardous liquid pipeline related rule makings. The commission posted the relevant rule-making information on its internet web site at www.wutc.wa.gov.

     11 The commission solicited written comments and held workshops relating to the content of the rules. After considering and incorporating many of the suggestions made by stakeholders, the commission offered the draft proposed rules for comment.

     12 MEETINGS OR WORKSHOPS; ORAL COMMENTS: The commission held three workshops to discuss draft rule language chapter 480-75 WAC. Representatives from the following companies, organizations, agencies and municipalities attended some or all of the workshops: Olympic Pipeline Company -- BP Pipelines North America, Inc., McChord Pipeline Company, Tidewater Terminal Company, Kaneb Pipeline Company, Agrium US., Inc., Accufacts, Inc., Adsistor Tech., Washington State Department of Emergency Management, King County Department of Natural Resources, Tumwater Fire Department, Port of Seattle, City of Bellingham, City of SeaTac, City of Spokane, City of Kent, City of Auburn, City of Seattle, City of Redmond. Sarah Spence commented as an individual interested person.

     13 All rules were discussed at the workshops. Items of greatest interest included discussions relating to design, construction and repair, and operation and maintenance of new and repaired pipelines, as well as reporting requirements for pipeline companies. Agreement was reached on all issues raised by various stakeholders.

     14 NOTICE OF PROPOSED RULE MAKING: The commission filed a notice of proposed rule making (CR-102) on June 5, 2002, at WSR 02-12-132. The commission scheduled this matter for oral comment and adoption under Notice No. WSR 02-12-132 at 9:30 a.m., Wednesday, July 10, 2002, in the Commission's Hearing Room, Second Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA. The notice also provided interested persons the opportunity to submit written comments to the commission.

     15 COMMENTERS (WRITTEN COMMENTS): During the rule-making process, the commission called for seven rounds of comments on discussion drafts of rules. Following the notice of proposed rule making (CR-102), the commission received written comments from the following companies and agencies: Olympic Pipeline Company -- BP Pipelines North America, Inc., (Olympic), McChord Pipeline Company, (McChord), Energy Facility Site Evaluation Council (EFSEC), and Washington State Department of Ecology (DOE). Agreement was reached on all major issues raised by participating stakeholders.

     16 RULE-MAKING HEARING: The commission originally scheduled this matter for oral comment and adoption under Notice No. WSR 02-12-132, at a rule-making hearing scheduled during the commission's regularly scheduled open public meeting on July 10, 2002, at the commission's offices in Olympia, Washington. The commission continued the rule adoption hearing on July 10, 2002, to July 26, 2002. On July 26, 2002, Chairwoman Marilyn Showalter, Commissioner Richard Hemstad, and Commissioner Patrick J. Oshie considered the rule proposal for adoption, pursuant to notice during the commission's regularly scheduled open public meeting.

     17 COMMISSION ACTION: After considering all of the information regarding the proposal, the commission approved the proposed rules for chapter 480-75 WAC set forth in the CR-102 at WSR 02-12-132, with the exception of WAC 480-75-390 Valve spacing rapid shutdown.1 The commission determined that the language in WAC 480-75-390 warranted further discussion and clarification by stakeholders. Accordingly, the commission continued the adoption hearing for WAC 480-75-390 to November 15, 2002.

     18 ADDITIONAL WORKSHOP AND COMMENTS: The commission held one workshop to discuss draft rule language for WAC 480-75-390. Representatives from the following companies and agency attended the workshop and/or offered additional comments: Olympic Pipeline Company -- BP Pipelines North America, Inc., McChord Pipeline Company, Kaneb Pipeline Company, Accufacts, Inc., and the Washington State Department of Ecology.

     19 Workshop participants and commenters offered suggestions for clarifying and simplifying the language in WAC 480-75-390. Items of greatest interest included drafting language to clarify company procedures to rapidly locate and isolate reportable releases from pipelines. The various stakeholders reached agreement on the clarification of the draft rule language.

     20 CONTINUED RULE-MAKING HEARING: On November 15, 2002, Chairwoman Marilyn Showalter, Commissioner Richard Hemstad, and Commissioner Patrick J. Oshie considered the rule proposal for adoption during the commission's regularly scheduled open public meeting. The commission heard oral comments from Sondra Walsh, representing commission staff.

     21 SUGGESTIONS FOR CHANGE THAT ARE REJECTED: The commission rejected Olympic's proposal that the word "procedures" in sentence one of the proposed rule be replaced with the phrase "the ability to." The commission believes that companies need written procedures in their operation and maintenance manuals that describe how a company will rapidly shutdown and isolate a leak.

     22 COMMISSION ACTION: After considering all of the information regarding this proposal, the commission approved the rule in the CR-102 at WSR 02-12-132 with the changes described below.

     23 CHANGES FROM PROPOSAL: The commission adopted the proposal without any substantive changes to the text noticed at WSR 02-12-132. The adopted language merely reorganizes, simplifies, and clarifies the text noticed at WSR 02-12-132.

     24 STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: The commission determines that WAC 480-75-390 should be adopted to read as set forth in Appendix A, as a rule of the Washington Utilities and Transportation Commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.


1 On August 26, 2002, the commission filed an order with the code reviser at WSR 02-18-132, amending, adopting, and repealing rules permanently for chapter 480-75 WAC, with the exception of WAC 480-75-390.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

ORDER


     25 THE COMMISSION ORDERS That:

     26 WAC 480-75-390 is adopted to read as set forth in Appendix A, as a rule of the Washington Utilities and Transportation Commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.

     27 This order and the rule set out below, after being recorded in the register of the Washington Utilities and Transportation Commission, shall be forwarded to the code reviser for filing pursuant to chapters 80.01 and 34.05 RCW and chapter 1-21 WAC.

     DATED at Olympia, Washington, this 11th day of December, 2002.

Washington Utilities and Transportation Commission

Marilyn Showalter, Chairwoman

Richard Hemstad, Commissioner

Patrick J. Oshie, Commissioner

OTS-5873.3


NEW SECTION
WAC 480-75-390   Valve spacing and rapid shutdown.   (1) Each company must have procedures to rapidly locate and isolate reportable releases from a pipeline.

     (2) When determining the type of valve to be used, its location, and its shut-off time, a company must consider the following:

     (a) Terrain;

     (b) Geohazards;

     (c) Drainage; and

     (d) Type and condition of the pipe.

     (3) Whenever a new rapid shutdown valve is to be installed, the company must conduct a surge analysis to ensure that the surge pressure in the pipeline will not exceed one hundred ten percent of the maximum operating pressure as a result of a rapid valve closure.

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