WSR 02-12-132

PROPOSED RULES

UTILITIES AND TRANSPORTATION

COMMISSION

[ Filed June 5, 2002, 10:31 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 00-17-134.

     Title of Rule: Chapter 480-75 WAC, Hazardous liquid, gas, oil and petroleum pipeline companies -- Safety. The proposed rules would establish minimum safety standards and reporting requirements for the transportation of hazardous liquids by pipeline.

     Purpose: This proposal would implement the requirements of chapter 81.88 RCW which requires the commission to develop a comprehensive program of hazardous liquid pipeline safety. In addition, the proposal would implement the Governor's Executive Order 97-02 by reviewing the rules for need, effectiveness and efficiency, clarity, intent and statutory authority, and cost and fairness.

     Other Identifying Information: Docket No. TO-000712.

     Statutory Authority for Adoption: RCW 80.01.040 and 80.04.160.

     Statute Being Implemented: Chapter 81.88 RCW.

     Summary: See Explanation of Rule below.

     Name of Agency Personnel Responsible for Drafting: Sondra Walsh, Senior Policy Strategist, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, (360) 664-1286; Implementation and Enforcement: Carole J. Washburn, Secretary, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, (360) 664-1174.

     Name of Proponent: Washington Utilities and Transportation Commission, governmental.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: The proposed rules would establish a comprehensive program of hazardous liquid pipeline safety consistent with chapter 8l.88 RCW, by establishing safety standards for the transportation of hazardous liquids by pipeline, by establishing requirements for the design, construction, maintenance, and repair of hazardous liquids pipeline facilities, and by establishing safety plans and reporting requirements. The purpose of the rules is to provide minimum safety standards and reporting requirements for the transportation of hazardous liquids by pipeline. The proposal would protect the health and safety of the public and the environment by implementing safety measures applicable to persons transporting hazardous liquids by pipeline within the state of Washington.

     Proposal Changes the Following Existing Rules: The proposal would change the title of chapter 480-75 WAC to Hazardous liquid, gas, oil and petroleum pipeline companies -- Safety.

     The proposal repeals five out of seven existing rules in chapter 480-75 WAC, creates thirty-six new rules, and amends one existing rule.

     Organization of the Chapter. The proposal would organize chapter 480-75 WAC into six parts (General Rules, Design and Construction Rules, and Maintenance Rules, Reporting Rules, and Adoption by Reference Rule) to improve ease of use.

     General Rules. This section includes common rules that the commission applies to all regulated industries. Placement of general rules in this chapter would eliminate searching other WACs for applicable rules. Two new rules have been proposed for inclusion in this section: WAC 480-75-210 Additional requirements, and 480-75-220 Severability.

     Design. This section includes ten new rules that incorporate the requirements of chapter 81.88 RCW.

     Construction and Repair. This section also includes seven new rules based on the requirements of chapter 81.88 RCW.

     Operation and Maintenance. This section includes six new rules that reflect the requirements of chapter 81.88 RCW.

     Reporting Rules. WAC 480-75-650 Annual reports, has been redrafted for clarity and to reflect the requirements of chapter 81.88 RCW. This section also includes six new rules: WAC 480-75-600 Maps, drawings, and records of hazardous liquid facilities, 480-75-610 Reporting requirements for proposed construction, 480-75-620 Pressure testing reporting requirements, 480-75-630 Incident reporting, 480-75-640 Depth of cover survey, and 480-75-660 Operations safety plan requirements.

     Adoption by Reference. WAC 480-75-999 is amended to update references.

     A small business economic impact statement has been prepared under chapter 19.85 RCW.

Small Business Economic Impact Statement

     1. Introduction: In August 2000, the Washington Utilities and Transportation Commission (commission) initiated a review of the rules in chapter 480-75 WAC regarding petroleum pipeline companies. The commission initiated this review in Docket No. TO-000712 pursuant to chapter 81.88 RCW and Executive Order 97-02, which requires agencies to review existing rules for readability and content with attention being paid to clarity, intent, statutory authority, need, effectiveness, efficiency, coordination, cost, and fairness. The commission also conducted a general revision of the rules to analyze whether they provided the results that they were originally intended to achieve and whether the rules are consistent with laws and with appropriate and lawful policies. New rules were added to ensure clear communication of policies, processes, and procedures or to provide complete information important to regulated companies and the customers they serve.

     Over the last eighteen months, the commission has circulated multiple rounds of draft rules and held three workshops with stakeholders to discuss draft rule language, receive comments, and explore options. The commission regulates the petroleum pipeline industry for safety, and took into account the economic impact of potential rule changes as an integral part of its analysis. In addition, the commission asked stakeholders to provide information on the economic impact of potential rule provisions for use in preparing a small business economic impact statement (SBEIS). An SBEIS is intended to evaluate any disproportionate impacts of the rule making on small businesses.

     2. Regulatory Fairness Act Requirements: Administrative rules implemented by state agencies can have a disproportionate impact on small businesses, compared to large business, simply because of the size of those businesses. This disproportionate impact may affect competition, innovation, employment, economic growth, and threaten the very existence of some small businesses. Thus, the Regulatory Fairness Act, chapter 19.85 RCW, was enacted with the intent of reducing any disproportionate impact of state administrative rules on small businesses.

     The Regulatory Fairness Act requires agencies to prepare an SBEIS if the proposed rule will impose "more than minor costs on businesses in an industry." An agency must then compare the costs of compliance with the proposed rule for large and small businesses within an industry, and then consider how to mitigate any disproportionate impact on small businesses. A business is categorized as "small" under the Regulatory Fairness Act if the business employs fifty or fewer employees.

     3. Objective: Pursuant to chapter 19.85 RCW, commission staff prepared this SBEIS to examine the anticipated impact on small businesses of the proposed rules for chapter 480-75 WAC, and to propose plausible mitigation strategies, if necessary, based on the magnitude of economic impacts.

     4. Study Procedure: Staff considered the economic impact of potential changes to the petroleum pipeline industry rules as an integral part of its review of the rules themselves. In each round of written and oral comments by stakeholders, economic factors played a central role in the public interest issues under consideration. The commission's regulation of the petroleum industry is unique. The commission has jurisdiction over seven intrastate hazardous liquid companies. The companies range in size from 1.6 miles to 56.01 miles. Consequently drafting rules that are fair and equitable to all companies presents a challenge. Four of the seven companies under commission regulation submitted an SBEIS. The analysis of the surveys follows.

     The commission solicited input on economic impacts during the rule review process by circulating an SBEIS questionnaire in April, 2002. The commission received responses from four of the seven hazardous liquid companies under the commission's jurisdiction: Tidewater Terminal Company (Tidewater); Agrium U.S. Inc. (Agrium); McChord Pipeline Company (McChord); and Kaneb Pipeline Company (Kaneb). Two of the proposed rules Tidewater will implement will cause the company to incur substantial cost. Staff and Tidewater have had discussions on how to mitigate the implementation cost. If the rules are adopted as proposed an option for the company is to request from the commission an extension of time to comply with WAC 480-75-300 and 480-75-330. This would allow the company the ability to budget for the additional cost, and spread that cost over more than one fiscal year.

     Agrium, which has 1.6 miles of pipeline will also incur substantial implementation cost. Staff and Agrium have discussed various ways to mitigate the cost. An option for the company, like for Tidewater, is to request from the commission an extension of time to comply with WAC 480-75-300 and give them the ability to budget for and spread the implementation cost over more than one fiscal year.

     McChord may also incur substantial implementation cost. Staff and McChord continue to have discussions on the intent of WAC 480-75-390. If the company's current system meets the requirements of WAC 480-75-390, the implementation cost would decrease by $250,000. If the system does not meet the requirements of the proposed rule, then the company would incur substantial cost. Staff will continue to work with the company and discuss ways to mitigate the cost if it is found that the system needs to be upgraded to meet the requirements of WAC 480-75-390.

     The SBEIS submitted by Kaneb was inconclusive. Staff reviewed the SBEIS and found that Kaneb answered most of the questions with "cannot be determined at this time." The implementation cost and on-going cost included in the SBEIS is minimal. Staff has attempted to contact Kaneb to discuss their responses. The company has not been available, and did not attend the April 3, 2002, stakeholder meetings where the intent of all the rules was discussed. Staff will continue to try to discuss the intent of the draft rules and Kaneb's SBEIS with the company. At this time the economic impact on the company is minimal.

SBEIS ANALYSIS FOR COMPANIES


Company Name Company Employee Implementation

     Cost

Cost Per

     Employee

Three Year

     Mitigation

Ongoing

     Cost

Cost Per

     Employee

Staff Comments
Agrium U.S. Inc. 121 $262,400 $2168.602 $35,000 $289.26
Tidewater Terminal Co. 43 $360,000 $8,372.09 $2,790.70 $52,000 $1,209.30 Implementation is mitigated over a three year period.
McChord Pipeline Co. 150 $332,000 $2,213.33 $737.78 $8,000 $53.33 Staff and the company will continue discussing the intent of WAC 480-75-390. If the company's current systems meets the requirements of the rule the implementation cost will decrease by $250,000.
Kaneb Pipeline 150 $10,000 $66.67 $2,500 $16.67

     5. Rule Modifications: Commission staff modified WAC 480-75-340 to address McChord's concern of placing test stations at each pipe crossing. The rule has been redrafted to state that "....test stations and other electrical measurement contact points that are located at pipe casings and at locations sufficient to facilitate cathodic protection testing." This language change will eliminate $25,000 in compliance cost for the company. Commission staff also modified WAC 480-75-420 from 5% to 10% to address Agrium's concern that setting the valve release at 5% was too close to the test pressure, and could potentially prolong the test.

     6. Conclusion: Below, the section-by-section analysis shows, the economic impact of the proposed rule revisions is generally not significant for petroleum pipeline companies in general. The proposed revisions make the petroleum pipeline companies rules clearer and more consistent, which makes it easier for companies' to comply with the rules. Two of the rules could result in substantial implementation costs for some companies. Staff and the companies will discuss ways to mitigate those costs.

Section-by-Section Analysis of Economic Impact of New Proposed Rules and Revisions

Chapter 480-75 WAC, Hazardous Liquid, Gas, Oil and Petroleum Pipeline Companies -- Safety



480-75-100 Definitions. Any substantive effect of a change in definition is analyzed with the substantive rule itself.
480-75-200 Application of rules. No substantive change. No economic impact.
480-75-210 Additional requirements. No substantive change. No economic impact.
480-75-220 Severability. No substantive change. No economic impact.
480-75-250 Civil penalty for violation of chapter 81.88 RCW. No substantive change. No economic impact.
480-75-300 Leak detection. New rule. Economic impact analyzed. See table.
480-75-310 Geological considerations. New rule. No economic impact.
480-75-320 Overpressure protection. New rule. No economic impact.
480-75-330 Overfill protection. New rule. Economic impact analyzed. See table.
480-75-340 Cathodic protection test station location. New rule. No significant economic impact.
480-75-350 Design specification for new pipeline project. New rule. No economic impact.
480-75-360 Class location. New rule. No economic impact.
480-75-370 Design factor (F) for steel pipe. New rule. No economic impact.
480-75-380 Location of pump stations and breakout tanks for hazardous liquid pipeline. New rule. No economic impact.
480-75-390 Valve spacing and rapid shutdown. New rule. Economic impact analyzed. See table.
480-75-400 Backfill. New rule. No economic impact.
480-75-410 Coatings. New rule. No economic impact.
480-75-420 Hydrostatic test requirements. New rule. No economic impact.
480-75-430 Welding procedures. New rule. No economic impact.
480-75-440 Pipeline repairs. New rule. Economic impact to each of the companies is $300.00 or less.
480-75-450 Construction specifications. New rule. No economic impact.
480-75-460 Welding inspection requirements. New rule. No significant economic impact.
480-75-500 Moving and lowering hazardous liquid pipelines. New rule. Economic impact analyzed. See table.
480-75-510 Remedial action. New rule. No significant economic impact.
480-75-520 Inspections during excavation. New rule. No significant economic impact.
480-75-530 Right of way inspections. New rule. No significant economic impact.
480-75-540 Above ground facilities. New rule. No significant economic impact.
480-75-550 Change in class location. New rule. No economic impact.
480-75-600 Maps, drawings, and records of hazardous liquid facilities. New rule. No economic impact.
480-75-610 Reporting requirements for proposed construction. New rule. No significant economic impact.
480-75-620 Pressure testing reporting requirements. New rule. No significant economic impact.
480-75-630 Incident reporting. New rule. No significant economic impact.
480-75-640 Depth of cover survey. New rule. No significant economic impact.
480-75-650 Annual reports. No substantive change. No economic impact.
480-75-660 Operations safety plan requirements. New rule. No significant economic impact.
480-75-999 Adoption by reference. No change.

     A copy of the statement may be obtained by writing to Washington Utilities and Transportation Commission, Records Center, Docket No. TO-000712, 1300 South Evergreen Park Drive S.W., P.O. Box 47250, Olympia, WA 98504-7250, phone (360) 664-1234, fax (360) 664-1150.

     RCW 34.05.328 does not apply to this rule adoption. The commission is not an agency to which RCW 34.05.328 applies. The proposed rules are not significant legislative rules as referenced in RCW 34.05.328.

     Hearing Location: Commission Hearing Room, Second Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, on July 10, 2002, at 9:30 a.m.

     Assistance for Persons with Disabilities: Contact

Mary DeYoung by July 8, 2002, TDD (360) 586-8203 or (360) 664-1133.

     Submit Written Comments to: Secretary, Docket No. TO-000712, Washington Utilities and Transportation Commission, 1300 South Evergreen Park Drive S.W., P.O. Box 47250, Olympia, WA 98504-7250, fax (360) 586-1150, by June 26, 2002.

     Date of Intended Adoption: July 10, 2002.

June 5, 2002

Carole J. Washburn

Secretary

OTS-5740.1

Chapter 480-75 WAC

HAZARDOUS LIQUID, GAS, OIL AND PETROLEUM PIPELINE COMPANIES -- SAFETY

GENERAL RULES
NEW SECTION
WAC 480-75-100   Definitions.   "Hazardous liquid" means (a) petroleum, petroleum products, or anhydrous ammonia as those terms are defined in 49 CFR Part 195 and (b) carbon dioxide.

     "Maximum operating pressure (MOP)" means the maximum operating pressure at which a pipeline or segment of a pipeline may be operated under 49 CFR Part 195.

     "Backfill" means the material filled over the pipe after the pipe is lowered into a trench.

     "Bedding" means the material placed in the bottom of a trench prior to laying a pipe.

     "Break-out tank" means a tank that is used to relieve surges in a hazardous liquid pipeline system, or a tank used to receive and store hazardous liquid transported by a pipeline for reinjection and continued transportation by pipeline.

     "Company," "pipeline," "pipeline system," or "hazardous liquid pipeline" means all parts of a pipeline facility through which hazardous liquid moves in transportation, including, but not limited to, line pipe, valves, and other appurtenances connected to line pipe, pumping units, fabricated assemblies associated with pumping units, metering and delivery stations and fabricated assemblies therein, and breakout tanks. Pipeline or pipeline system does not include process or transfer pipelines.

     "High stress" means a pipeline that operates at a hoop stress level greater than twenty percent of the specified minimum yield strength of the line pipe.

     "High stress pipeline" means a hazardous liquid pipeline that is operated in its entirety at a stress level over twenty percent of the specified minimum yield strength of the pipe.

     "Major reconstruction" or "reconditioning" means any change in pipeline routing, either horizontally or depth, or replacement of existing pipe of one hundred feet or more in length.

     "Independent level alarm" means an alarm function actuated by a primary level sensing device that is separate and independent from any tank gauging equipment on the tank.

     "New pipeline" means a new pipeline that did not previously exist, a replacement of an existing pipeline of one hundred feet or longer, or an extension of an existing pipeline for one hundred feet or longer.

     "Operator" means a person who owns or operates pipeline facilities.

     "Person" means an individual, partnership, franchise holder, association, corporation, a state, a city, a county, or any political subdivision or instrumentality of a state, and its employees, agents, or legal representatives.

     "Pipeline company" or "hazardous liquid pipeline company" means a person or entity constructing, owning, or operating a pipeline for transporting hazardous liquid or carbon dioxide. A "pipeline company" does not include: (a) Distribution systems owned and operated under franchise for the sale, delivery, or distribution of natural gas at retail; or (b) excavation contractors or other contractors that contract with a pipeline company.

     "Pipeline facility" means new and existing pipeline, rights of way and any equipment, facility, or building used in the transportation of hazardous liquids or carbon dioxide.

     "Release" means when hazardous liquid escapes from the pipeline.

     "Subsoiling" means the agricultural practice of breaking compact subsoil.

     "Telephonic notification" means verbal notification by telephone to the Washington utilities and transportation commission, pipeline safety division.

[]


NEW SECTION
WAC 480-75-200   Application of rules.   The rules in this chapter apply to hazardous liquid pipeline companies that are subject to the jurisdiction of the commission under chapter 81.88 RCW. The purpose of the rules is to provide minimum safety standards and reporting requirements for the transportation of hazardous liquids by pipeline. These rules apply to the design, construction, operation, maintenance, and safety of hazardous liquids pipeline facilities except those hazardous liquids pipeline facilities exclusively under federal jurisdiction as prescribed by the Pipeline Safety Law, 49 U.S.C. Section 60101.

[]


NEW SECTION
WAC 480-75-210   Additional requirements.   (1) These rules do not relieve any hazardous liquid pipeline company from any of its duties and obligations under the laws of the state of Washington.

     (2) The commission retains the authority to impose additional or different requirements on any hazardous liquid pipeline company in appropriate circumstances, consistent with the requirements of law.

[]


NEW SECTION
WAC 480-75-220   Severability.   If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected.

[]


NEW SECTION
WAC 480-75-250   Civil penalty for violation of chapter 81.88 RCW.   (1) Any hazardous liquid pipeline company that violates any public safety provision of chapter 81.88 RCW or regulation issued thereunder, required for compliance with the Federal Pipeline Safety Law, 49 U.S.C. Section 60101, is subject to a civil penalty not to exceed twenty-five thousand dollars for each violation for each day that the violation persists. The maximum civil penalty under this subsection for a related series of violations is five hundred thousand dollars. This subsection applies to violations of public safety requirements including any commission order or chapter 480-75 WAC.

     (2) In determining the amount of the penalty, the commission will consider the appropriateness of the penalty in relation to the position of the person charged with the violation.

[]


NEW SECTION
WAC 480-75-260   Exemption for rules in chapter 480-75 WAC.   (1) The commission may grant an exemption from the provisions of any rule in this chapter if consistent with the public interest, with the purposes underlying regulation, and with applicable statutes.

     (2) To request a rule exemption, a person must file with the commission a written request identifying the rule for which an exemption is sought, giving a full explanation of the reason for the exemption.

     (3) The commission will assign the request a docket number, if it does not arise in an existing docket, and will schedule the request for consideration at one of its regularly scheduled open meetings or, if appropriate under chapter 34.05 RCW, in an adjudication. The commission will notify the person requesting the exemption, and other interested persons, of the date of the hearing or open meeting when the commission will consider the request.

     (4) In determining whether to grant the request, the commission may consider whether application of the rule would impose undue hardship on the petitioner, of a degree or a kind different from hardship imposed on other similarly situated persons, and whether the effect of applying the rule would be contrary to the purpose of the rule.

     (5) The commission will enter an order granting or denying the request, or setting it for hearing pursuant to chapter 480-09 WAC.

[]

DESIGN
NEW SECTION
WAC 480-75-300   Leak detection.   (1) Hazardous liquid pipeline companies must rapidly locate leaks from their pipeline. Companies must provide leak detection for under flow and no flow conditions.

     (2) Leak detection systems must be capable of detecting an eight percent of maximum flow leak within fifteen minutes or less.

     (3) Hazardous liquid pipeline companies must have a leak detection procedure and a procedure for responding to alarms. The operator must maintain leak detection maintenance and alarm records.

[]


NEW SECTION
WAC 480-75-310   Geological considerations.   New pipeline designs must consider potential impacts from seismic activity and landslides.

[]


NEW SECTION
WAC 480-75-320   Overpressure protection.   Piping that can be pressurized above its maximum operating pressure (MOP) must be equipped with pressure relief systems. When determining whether the MOP can be exceeded, the operator must consider internal pressure surges from rapid valve closures or other obstruction. The pressure relief system must be set at or below MOP. The operator must conduct a surge analysis to determine the likelihood of surge pressure exceeding one hundred ten percent of MOP.

[]


NEW SECTION
WAC 480-75-330   Overfill protection.   Break out tanks must have an independent level alarm.

[]


NEW SECTION
WAC 480-75-340   Cathodic protection test station location.   Each cathodically protected pipeline must have test stations and other electrical measurement contact points that are located at pipe casings and at locations sufficient to facilitate cathodic protection testing.

[]


NEW SECTION
WAC 480-75-350   Design specifications for new pipeline projects.   New pipeline projects must be designed in accordance with ASME B31.4 "Pipeline Transportation Systems for Liquid Hydrocarbon and Other Liquids." Information about the ASME edition adopted and where to obtain it are set out in WAC 480-75-999, Adoption by reference.

[]


NEW SECTION
WAC 480-75-360   Class locations.   (1) This section classifies pipeline locations for the design of new pipelines. The following criteria apply to classifications under this section.

     (a) A "class location unit" is an onshore area that extends 220 yards (200 meters) on either side of the centerline of any continuous 1 mile (1.6 kilometers) of pipeline.

     (b) Each separate dwelling unit in a multiple dwelling unit building is counted as a separate building intended for human occupancy.

     (2) Except as provided in subsection (3) of this section, pipeline locations are classified as follows:

     (a) A Class 1 location is:

     (i) An offshore area; or

     (ii) Any class location unit that has ten or fewer buildings intended for human occupancy.

     (b) A Class 2 location is any class location unit that has more than ten but fewer than forty-six buildings intended for human occupancy.

     (c) A Class 3 location is:

     (i) Any class location unit that has forty-six or more buildings intended for human occupancy; or

     (ii) An area where the pipeline lies within 100 yards (91 meters) of either a building or a small, well-defined outside area (such as a playground, recreation area, outdoor theater, or other place of public assembly) that is occupied by twenty or more persons on at least five days a week for ten weeks in any twelve-month period. (The days and weeks need not be consecutive.)

     (d) A Class 4 location is any class location unit where buildings with four or more stories above ground are prevalent.

     (3) The length of Class locations 2, 3, and 4 may be adjusted as follows:

     (a) A Class 4 location ends 220 yards (200 meters) from the nearest building with four or more stories above ground.

     (b) When a cluster of buildings intended for human occupancy requires a Class 2 or 3 location, the class location ends 220 yards (200 meters) from the nearest building in the cluster.

[]


NEW SECTION
WAC 480-75-370   Design factor (F) for steel pipe.   Except as otherwise provided in subsections (1), (2) and (3) of this section, the design factor to be used in the design formula in 49 CFR 195.106 for new and existing pipelines is determined in accordance with the following table. Information about the Code of Federal Regulation regarding the version adopted and where to obtain it is set out in WAC 480-75-999, Adoption by reference.
Class location Design factor (F)
1 0.72
2 0.60
3 0.50
4 0.40
     (1) For Class 1 locations a design factor of 0.60 or less must be used in the design formula in 49 CFR 195.106 for steel pipe in Class 1 locations that:

     (a) Crosses the right of way of an unimproved public road, without a casing;

     (b) Crosses without a casing, or makes a parallel encroachment on the right of way of either a hard-surfaced road, a highway, a public street, or a railroad;

     (c) Is supported by a vehicular, pedestrian, railroad, or pipeline bridge; or

     (d) Is used in a fabricated assembly (including mainline valve assemblies, cross-connections, and river crossing headers).

     (2) For Class 2 locations, a design factor of 0.50, or less, must be used in the design formula in 49 CFR 195.106 for uncased steel pipe that crosses the right of way of a hard-surfaced road, a highway, a public street, or a railroad.

     (3) For Class 1 and Class 2 locations, a design factor of 0.50, or less, must be used in the design formula in 49 CFR 195.106 for:

     (a) Steel pipe in a pump station; and

     (b) Steel pipe (including a pipe riser, on a platform located offshore or in inland navigable waters).

[]


NEW SECTION
WAC 480-75-380   Location of pump stations and breakout tanks for hazardous liquid pipelines.   No new pump station will be located on any hazardous liquid pipeline or be constructed in any zoned area without prior approval of the appropriate zoning authority and acquisition of required permits. In other areas, the distance between any pump station and any existing building intended for human occupancy and not under the control of the company will not be less than five hundred feet. When locating new pump stations and breakout tanks, the operator must consider such hazards as overhead power lines, geologic faults, areas prone to flooding, landslides, and rock fall. This requirement only applies prior to facility construction.

[]


NEW SECTION
WAC 480-75-390   Valve spacing and rapid shutdown.   (1) Each hazardous liquid pipeline company must rapidly locate and isolate all releases from pipelines. The hazardous liquid pipeline company must install remote control shutoff valves, check valves, and remotely monitored pressure gauges and meters where they will minimize the magnitude of a pipeline spill. The hazardous liquid pipeline company must consider terrain, valve placement, geohazards and drainage potential to reduce pipeline shutdown time and to minimize the amount of product flowing out of the pipeline in the event of a spill.

     (2) Whenever a hazardous liquid pipeline company changes the design or operation of an existing valve, a surge analysis must be conducted and the report kept for the life of the pipeline.

     (3) Hazardous liquid pipeline companies must include in their safety plan shutdown procedures for the containment of product that will designate where and how valves will be placed.

[]

CONSTRUCTION AND REPAIRS
NEW SECTION
WAC 480-75-400   Backfill requirements.   (1) For new pipelines or when conducting maintenance activity for existing pipelines backfilling must be provided in a manner that will provide firm support for the pipeline and in a manner that neither the pipe nor the pipe coating is damaged by the backfill material or by subsequent surface activities.

     (2) Where the backfill material contains rocks or hard lumps that could damage the coating, care must be taken to protect the pipe and the pipe coating from damage by such means as the use of mechanical shield material.

     (3) Backfilling procedures must not cause distortion of the pipe cross-section that would be detrimental to the operation of the piping, passage of cleaning, or internal inspection devices.

     (4) Backfilling must be performed in such a manner as to prevent excessive subsidence or erosion of the backfill and support material. Where a ditch is flooded, care must be exercised so that the pipe is not floated from the bottom of the ditch prior to backfill completion.

     (5) For open trench installations that cross paved areas subject to vehicular loading, the backfill must be compacted in layers to a minimum of ninety-five percent relative density.

     (6) Bedding material must be clean sand or soil and must not contain stones having a maximum dimension larger than one-half inch. Material must be placed to a minimum depth of six inches under the pipe and six inches over the top of the pipe. The remaining backfill must not contain rock larger than six inches. Organic material and wood is not permitted for bedding and backfill.

[]


NEW SECTION
WAC 480-75-410   Coatings.   All new coated pipe used to transport hazardous liquids must be electrically inspected prior to backfilling, using a holiday detector to check for faults not observable by visual examination. The holiday detector must be operated in accordance with the manufacturer's instructions and at the voltage level appropriate for the electrical characteristics of the pipeline system being tested.

[]


NEW SECTION
WAC 480-75-420   Hydrostatic test requirements.   New or existing hazardous liquid pipelines while being hydrostatically tested must have the following:

     (1) An isolation valve must be provided between the pressure testing manifold and the pipeline being tested. The isolation valve must be rated for the manifold test pressure when in the closed position.

     (2) Pressure relief valve(s) of adequate capacity set to relieve at ten percent above the hydrotest pressure must be installed. The relief valves must be tested, dated, and tagged within one week prior to the hydrotest.

     (3) In addition to the pressure relieving device, a bleed valve must be provided to protect the pipeline from overpressure. The bleed valve must be readily accessible in case immediate depressurization is required.

     (4) The pressure testing manifold in the actual pressure test must be separately pressure tested to at least 1.2 times the pipeline test pressure but not less than the discharge pressure of the pump used for the pressure testing. After the test pressure is reached and before commencement of inspection of the pipeline, the isolation valve between the temporary test manifold and pipeline must be closed and the test pump disconnected.

     (5) A test chart or other recording method that shows that the pressure was maintained at the minimum test pressure throughout the entire test must be documented for all hydrostatic tests. A company representative must sign and date the test to certify the validity of the test. All equipment such as hoses, piping, and other equipment used to hydrostatically test the pipe must be rated for at least the target pressure. Each hydrostatic test of a pipeline must be documented to show:

     (a) Test date;

     (b) Signature of the certifying agent;

     (c) Beginning and ending times of the test;

     (d) Beginning and ending temperatures; and

     (e) Highest and lowest pressure achieved.

     (6) Precautions such as warning signs indicating a pipeline is under test conditions must be posted on highway crossings and at locations where large groups of people may gather, such as schools, churches, hospitals, shopping malls, to safeguard the public and those living and working around the area where the test is conducted.

     (7) Pipeline companies must notify public officials who have jurisdiction encompassing the area affected by the pipeline test.

     (8) No additional water is allowed to be added to the pipeline once the hydrostatic test has started. As pressure varies significantly with changing test water temperatures, each operator must take into consideration temperature variation in the test water before accepting the test.

[]


NEW SECTION
WAC 480-75-430   Welding procedures.   (1) For new and existing pipelines, all welding procedures and welders must be qualified to the API Standard 1104 or section 2001 of the ASME Boiler and Pressure Vessel Code. Information about the API standards and the ASME edition adopted, and where to obtain them, are set out in WAC 480-75-999, Adoption by reference. Each welder qualification test result must be recorded and kept for a period of five years, and:

     (a) Operators must use testing equipment necessary to measure the essential variables during welder qualification or requalification, and also for procedure qualification or requalification. All essential variables must be recorded as performed during the welding qualification.

     (b) Qualified welding procedures must be on-site where welding is being performed.

     (2) Welders must carry appropriate identification and qualification cards showing the name of welder or joiner, their qualifications, date of qualification expiration, and the company whose procedures were followed for the qualification. Welders' and joiners' qualification cards will be subject to commission inspection at all times when personnel are working on facilities subject to commission jurisdiction.

[]


NEW SECTION
WAC 480-75-440   Pipeline repairs.   Pipeline repairs must be made in accordance with ASME B31.4 "Pipeline Transportation Systems for Liquid Hydrocarbons and Other Liquids." Information about the ASME edition adopted and where to obtain it are set out in WAC 480-75-999, Adoption by reference.

[]


NEW SECTION
WAC 480-75-450   Construction specifications.   New pipeline construction must conform to the requirements of ASME B31.4. Information about the ASME edition adopted and where to obtain it are set out in WAC 480-75-999, Adoption by reference. The longitudinal seams of connecting pipe joints must be offset by at least two inches. In addition, the longitudinal seams must be located on the upper half of the pipe when laid in the trench. Seamless pipe is exempted from the requirements of the longitudinal seam orientation.

[]


NEW SECTION
WAC 480-75-460   Welding inspection requirements.   For new and existing hazardous liquid pipelines, companies must perform one hundred percent inspection of all girth welds by radiography or automatic ultrasonic testing in accordance with API 1104. Information about the API standards adopted and where to obtain it are set out in WAC 480-75-999, Adoption by reference. Companies must keep a log of each weld inspected and keep all inspection records for the life of the pipeline.

[]

OPERATION AND MAINTENANCE
NEW SECTION
WAC 480-75-500   Moving and lowering hazardous liquid pipelines.   Prior to moving or lowering any hazardous liquid pipeline, hazardous liquid pipeline companies must prepare a study, to determine whether the proposed action will cause an unsafe condition. This study must be reviewed and approved by a person designated by the company who is qualified to review the study, and retained in the company's files for the life of the pipeline. The study must include pipe stress calculations based on API RP 1117 "Movement of In-Service Pipelines." Information about the API standards adopted and where to obtain it are set out in WAC 480-75-999, Adoption by reference.

[]


NEW SECTION
WAC 480-75-510   Remedial action for corrosion deficiencies.   Hazardous liquid pipeline companies must initiate remedial action as necessary to correct deficiencies observed during corrosion monitoring, but no later than ninety days after acknowledging the deficiencies.

[]


NEW SECTION
WAC 480-75-520   Inspections during excavation.   Whenever a pipe is exposed for any reason, the operator must examine the pipe for evidence of mechanical damage or external corrosion, including inspecting the coating for evidence of damage. Mechanical damage must be evaluated and repaired as necessary, in accordance with company repair procedures. Coating damage must be repaired prior to reburying the pipeline. If the operator finds active corrosion, general corrosion, or corrosion that has caused a leak, the operator must investigate further to determine the extent of corrosion. The pipeline must be inspected prior to and during backfilling of the exposed section. The results of this inspection must be documented and maintained for the life of the pipeline.

[]


NEW SECTION
WAC 480-75-530   Right of way inspections.   Right of way inspections must be scheduled at least once each calendar week. If weather impedes the ability to conduct a fly-over inspection for a consecutive two week period, the weather condition must be noted and a drive-by right of way inspection must be conducted within the two week period.

[]


NEW SECTION
WAC 480-75-540   Above ground facilities.   Proper pipeline markers must be placed where hazardous liquid pipelines and any associated facilities are exposed. All hazardous liquid pipelines attached to bridges or otherwise spanning an area must have pipeline markers that are visible and readable at both ends of the suspended pipeline. Each operator must inspect all markers annually. Pipeline markers that are found damaged or missing must be replaced within thirty days.

[]


NEW SECTION
WAC 480-75-550   Change in class location.   Operators complying with WAC 480-75-014 and 480-75-015 must reevaluate their maximum operating pressure when there is a change in class location. The class location must be reevaluated periodically but not less often than once every five years.

[]

REPORTING
NEW SECTION
WAC 480-75-600   Maps, drawings, and records of hazardous liquid facilities.   (1) All hazardous liquid pipeline companies must prepare, maintain, and provide to the commission, upon request, copies of maps, drawings, and records that pertain to hazardous liquid pipeline facilities. The maps, drawings, and records must be of sufficient scale and detail as is necessary to show the size and type of material of all facilities.

     (2) Each hazardous liquid pipeline company must make books, records, reports, and other information available to the commission, so the commission or its authorized representatives can determine whether the hazardous liquid pipeline company is in compliance with state and federal regulations.

     (3) When pipeline facilities are modified, all construction records, revision to maps, and operating history made available to appropriate operations personnel must be updated within six months.

[]


NEW SECTION
WAC 480-75-610   Reporting requirements for proposed construction.   (1) At least forty-five days prior to the construction or major reconstruction (or reconditioning) of any hazardous liquid pipeline intended to be operated at twenty percent or more of the specified minimum yield strength of the pipe used, a report must be filed with the commission setting forth the proposed route and the specifications for such pipeline. The forty-five-day reporting requirement may be waived in the event of an emergency. The report must include, but is not limited to, the following items:

     (a) Description and purpose of the proposed pipeline;

     (b) Pipe specifications and route map;

     (c) Maximum operating pressure for which the pipeline is being constructed;

     (d) Location and construction details of all river crossings or other unusual construction requirements encountered en route; i.e., places where pipe will be exposed or it is impractical to provide required cover, bridge crossings, lines to be laid parallel to railroads or state highways and encroachments, and other areas requiring special or unusual design and construction considerations;

     (e) Corrosion control plan that includes the specifications for coating and for wrapping;

     (f) Welding specifications and welding inspection methods and procedures required during construction of the pipeline;

     (g) Required bending procedures; and

     (h) Location and specification of all mainline block valves indicating whether the valves will be operated by manual or remote control. Indicate other auxiliary equipment to be installed as a part of the pipeline system to be constructed.

     (2) For pipelines operating under twenty percent specified minimum yield strength, companies must submit to the commission a written notice at least forty-five days prior to the proposed construction. The notice must include a project description and timeline.

[]


NEW SECTION
WAC 480-75-620   Pressure testing reporting requirements.   If pressure testing is to be used to increase the maximum operating pressure of a pipeline, companies must file a report with the commission at least forty-five days prior to pressure testing. The report must include the change in the maximum operating pressure and include the information required to qualify the pipeline for higher operating pressure.

[]


NEW SECTION
WAC 480-75-630   Incident reporting.   (1) Every hazardous liquid pipeline company must give prompt telephonic notice to the commission within two hours of an incident being discovered that results in any of the following:

     (a) A fatality;

     (b) Personal injury requiring hospitalization;

     (c) Spills of five gallons of product (the commission request voluntary compliance with 49 CFR, Part 195.50(b). If the Washington state legislature adopts this change, then notice of the five-gallon spill will be mandatory);

     (d) Damage to the property of the company and others of a combined total cost exceeding five thousand dollars (automobile collisions and other equipment accidents not involving hazardous liquid or hazardous-liquid-handling equipment need not be reported under this rule);

     (e) A significant occurrence in the judgment of the company, even though it does not meet the criteria of (a) through (d) of this subsection;

     (f) The news media reports the occurrence, even though it does not meet the criteria of (a) through (e) of this subsection.

     (2) A written report must be sent to the commission within one month of the incident. The report must include the following:

     (a) Name(s) and address(es) of any person or persons injured or killed or whose property was damaged;

     (b) The extent of injuries and damage;

     (c) A description of the incident including date, time, and place;

     (d) A description and maximum operating pressure of the hazardous liquid facilities implicated in the incident and the system operating pressure at the time of the incident;

     (e) The date and time the hazardous liquid facility returns to safe operations; and

     (f) The date, time, and type of any temporary or permanent repair.

     (3) An operator must give the commission telephonic notification within twenty-four hours of emergency situations including emergency shutdowns, material defects, or physical damage that impairs the serviceability of the pipeline.

[]


NEW SECTION
WAC 480-75-640   Depth-of-cover survey.   For pipelines constructed after April 1, 1970. Every five years depth-of-cover surveys must be conducted in rights of way to ensure the minimum depth-of-cover as required by subsections (1) and (2) of this section has been maintained for the entire pipeline. In areas subject to erosion and subsoiling, the survey period is every three years.

     (1) Unless specifically exempted in this section, all pipe must be buried so that it is below the level of cultivation. Except as provided in subsection (2) of this section, the pipe must be installed so that the cover between the top of the pipe and the ground level, road bed, river bottom, or sea bottom, as applicable, complies with the following table:
Location Cover (inches)

For normal excavation

Cover (inches)

For rock excavation

Industrial, commercial, and residential areas 36 30
Crossings of inland bodies of water with a width of at least 100 ft. from high water mark to high water mark 48 18
Drainage ditches at public roads and railroads 36 36
Deepwater port safety zone 48 24
Any other area 30 18

Note: Rock excavation is any excavation that requires blasting or removal by equivalent means.

     (2) Less cover than the minimum required by subsection (1) of this section may be used if:

     (a) It is impracticable to comply with the minimum cover requirements; and

     (b) Additional protection is provided that is equivalent to the minimum required cover.

[]


NEW SECTION
WAC 480-75-650   Annual reports.   (1) The annual report form No. 6 promulgated by the Federal Energy Regulatory Commission (FERC) is hereby adopted for hazardous liquid pipeline companies. At the close of each calendar year, hazardous liquid pipeline companies must secure from the FERC two copies of the annual report forms. The annual report must be completed for the calendar year's operations. One completed copy of the annual report must be submitted to the commission no later than April 1 of the succeeding year. The second completed copy must be retained by the company.

     (2) For those hazardous liquid pipeline companies not required to file form No. 6 the commission requires those companies to file annual report form 224-225 prescribed by the commission. The annual report will be mailed to each company by February 15 of each year. Companies must submit an annual report to the commission no later than April 1 of the succeeding year.

[]


NEW SECTION
WAC 480-75-660   Operations safety plan requirements.   (1) Each operator must prepare an operations safety plan (plan) that demonstrates the pipeline system is designed, constructed, operated, and periodically modified to provide for protection of the public and the environment. Facility operations must follow the plan. The plan must be thorough and contain enough information, analysis, and supporting documentation to demonstrate the company's ability to meet the requirements of this chapter. The plan may be incorporated into a company's existing operation, maintenance, or emergency plan as required by 49 CFR 195.402.

     (2) A log sheet must be included in the plan to record amendments. The log sheet must include the date the old section was eliminated, any new sections that were added, the date, the initials of the individual making the change, and the signature of the person responsible for reviewing the amendment. A description of the amendment(s) and its purpose must be included.

     (a) At a minimum, the plan must include the following:

     (i) The requirements in chapter 480-75 WAC;

     (ii) A schedule of inspection and testing of all the mechanical components and electronic components within the pipeline system;

     (iii) Structural integrity of all pipelines determined through pressure testing, in-line inspection surveys, or other appropriate techniques;

     (iv) Failsafe systems including emergency shutdown and isolation procedures;

     (v) Emergency management training for operators;

     (vi) Procedures for responding to earthquakes that must include a threshold for line shutoff, and procedures for integrity monitoring prior to restart;

     (vii) Procedure for assessing the potential for impacts on the pipeline system due to landslides. Operators with facilities located within potential landslide areas must develop monitoring and remediation procedures for ensuring that pipeline integrity is maintained in these areas.

     (3) Hazardous liquid pipeline companies must submit a plan to the commission within twelve months after the adoption of this rule. New pipeline operators must submit a plan to the commission no later than sixty days prior to startup.

     The plan must be submitted to:

     Washington Utilities and Transportation Commission

     Pipeline Safety Division

     P.O. Box 47250

     1300 S. Evergreen Park Dr. SW

     Olympia, WA 98504-7250

     (4) Amendments to the plan must be submitted to the commission within thirty days of the change.

     (5) Hazardous liquid pipeline companies must ensure that appropriate personnel are trained and familiar with the plan's content.

[]


AMENDATORY SECTION(Amending Docket No. A-010827, General Order No. R-491, filed 9/28/01, effective 10/29/01)

WAC 480-75-999   Adoption by reference.   In this chapter, the commission adopts by reference all or portions of regulations and standards identified below. They are available for inspection at the commission branch of the Washington state library. The publications, effective dates, references within this chapter, and availability of the resources are as follows:

     ((Title 49 Code of Federal Regulations, cited as 49 CFR, including all appendices and amendments is published by the United States Government Printing Office.

     (1) The commission adopts the version in effect on July 1, 2001.

     (2) This publication is referenced in WAC 480-75-005.

     (3))) (1) Title 49 Code of Federal Regulations, cited as 49 CFR, including all appendices and amendments is published by the United States Government Printing Office.

     (a) The commission adopts the version in effect on June 1, 2002.

     (b) This publication is referenced in WAC 480-75-370, 480-75-630, and 480-75-660.

     (2) The ASME B31.4, 1998 edition.

     (a) This publication is referenced in WAC 480-75-350, 480-75-430, 480-75-440, and 480-75-450.

     (3) The commission adopts API standard 1104 19th edition. This publication is referenced in WAC 480-75-430, 480-75-460, and 480-75-500.

     Copies of Title 49 Code of Federal Regulations are available from the Seattle office of the Government Printing Office and from various third-party vendors.

[Statutory Authority: RCW 80.01.040, 80.04.160, 81.04.160, and 34.05.310. 01-20-061 (Docket No. A-010827, General Order No. R-491), § 480-75-999, filed 9/28/01, effective 10/29/01.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 480-75-002 Application of rules.
WAC 480-75-005 Compliance with federal standards.
WAC 480-75-010 Annual reports.
WAC 480-75-223 Civil penalty for violation of chapter 81.88 RCW or regulations issued thereunder -- Maximum amount.
WAC 480-75-230 Modification/waivers.

© Washington State Code Reviser's Office