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ÐÌ[Docket€No.€RSPA„01„9832;€Amdt.€195„80]Ð H˜ ÐÌRIN€2137„AD59Ð øH ÐÌPipeline€Safety:ò òó ó€Hazardous€Liquid€Pipeline€Operator€Annual€ReportsÐ ¨ø ÐÌAGENCY:€ó óResearch€and€Special€Programs€Administration€(RSPA),€DOT.Ð X ¨ ÐÌò òACTIONó ó:€Final€rule.Ð $`" ÐÌò òSUMMARY:€ó óThis€action€requires€operators€of€pipeline€systems€subject€to€RSPAððs€hazardousÐ È'#& Ðliquid€pipeline€safety€regulations€to€prepare€and€file€annual€reports€containing€information€aboutÐ ¨)ø$( Ðthese€systems.€€This€data€will€provide€the€basis€for€more€efficient€and€meaningful€analyses€of€theÐ €+Ð&* Ðsafety€status€of€hazardous€liquid€pipelines.€€RSPAððs€Office€of€Pipeline€Safety€(RSPA/OPS)€willÐ X-¨(,L Ðuse€the€information€to€compile€a€national€pipeline€inventory,€identify€and€determine€the€scope€ofÐ d Ðsafety€problems,€and€target€inspections.€Ð <Ø ÐÌò òDATES:€ó óThis€final€rule€is€effective€on€[INSERT€DATE€30€DAYS€AFTER€DATE€OFÐ ì ˆ ÐPUBLICATION€IN€THE€FEDERAL€REGISTER].Ð Ì h ÐÌò òFOR€FURTHER€INFORMATION€CONTACT:€ó óShauna€Turnbull€by€phone€at€(202)366-3731,€Ð |  Ðby€e-mail€at€shauna.turnbull@rspa.dot.gov,€or€by€mail€at€the€U.S.€Department€of€Transportation,Ð \ø  ÐResearch€and€Special€Programs€Administration,€Office€of€Pipeline€Safety,€Room€2103,€400€7òòthóóÐ 4Ð ÐSt.€S.W.,€Washington,€D.C.€20590.Ð  ¨ ÐÌò òSUPPLEMENTARY€INFORMATION:€ó ó€Ð ¼X ÐÌò òBackgroundó óÐ t ÐÌòòóóThe€Federal€pipeline€safety€regulations€at€49€CFR€Part€195€apply€to€more€than€160,000€miles€ofÐ $"À Ðhazardous€liquid€and€carbon€dioxide€pipelines.€€RSPA/OPS€shares€responsibility€for€inspectingÐ ü#˜  Ðand€overseeing€the€safety€of€these€pipelines€with€many€state€pipeline€safety€offices.Ð Ô%p" ÐÌRSPA/OPS€uses€pipeline€accident€data€to€identify€safety€issues€and€target€risk„based€inspections.€Ð „) #& ÐThe€data€are€from€accident€reports€that€operators€submit€on€Form€F7000„1,€òòAccident€Report€ð!ðÐ \+ø$( ÐHazardous€Liquid€Pipelinesóó€(ðððð195.50€and€195.54).Ð 4-Ð&* ÐÑnOaÑâ nâѰ°Ñâ nâÑ  ÑÌIn€recent€years,€Congress,€the€National€Transportation€Safety€Board€(NTSB),€and€DOTððs€OfficeÐ <Ø Ðof€the€Inspector€General€(OIG)€have€urged€RSPA/OPS€to€improve€the€quality€of€its€accident€dataÐ  ° Ðand€data€analyses.€€In€response,€RSPA/OPS€reduced€the€volumetric€threshold€for€accidentÐ ì ˆ Ðreporting€from€5€barrels€to€as€little€as€5€gallons€of€product€released€during€an€accident€(67€FRÐ Ä ` Ð831;€January€8,€2002).€€However,€RSPA/OPS€still€lacks€the€information€necessary€to€improveÐ œ8  Ðaccident€analyses.Ð t  ÐÌTo€obtain€this€information,€RSPA/OPS€published€a€notice€of€proposed€rulemaking€(NPRM)€thatÐ $À Ðwould€require€operators€to€submit€an€annual€report€of€pipeline€inventory€and€other€informationÐ ü˜ Ðabout€their€pipeline€systems€(67€FR€48844;€July€26,€2002).€€This€information€would€provide€aÐ Ôp Ðfoundation€for€more€efficient€and€meaningful€analyses€of€accident€data.€€For€example,€to€helpÐ ¬H Ðdetermine€the€effect€of€system€improvements€and€other€safety€practices,€RSPA/OPS€would€useÐ „  Ðinformation€from€annual€reports€to€calculate€leaks€by€cause€on€a€per€mile€basis.€€The€informationÐ \ø Ðcould€also€be€used€for€trending€accident€data,€assessing€risk,€prioritizing€safety€inspections,Ð 4 Ð Ðdetermining€appropriate€remedial€actions,€comparing€individual€operator€performance€withÐ  "¨ Ðindustry€performance,€assessing€costs€and€benefits€of€safety€regulations,€monitoring€industryÐ ä#€  Ðperformance€and€regulatory€compliance,€and€allocating€RSPA/OPS€resources.Ð ¼%X" ÐÌRSPA/OPS€already€collects€similar€annual€report€information€for€gas€transmission€and€gatheringÐ l)#& Ðsystems€(RSPA€F€7100„2.1,€òòNatural€Gas€Transmission€Pipeline€Operator€Annual€Reportóó;€revisedÐ D+à$( ÐAugust€8,€2001).€€This€information€is€currently€used€by€RSPA/OPS,€state€pipeline€safetyÐ -¸&* Ðprograms,€state€governors,€congressional€committees,€metropolitan€planners,€pipeline€researchÐ d Ðengineers,€industry€safety€experts,€the€media,€and€the€public.€€Similarly,€a€hazardous€liquidÐ <Ø Ðpipeline€annual€report€would€provide€these€stakeholders€with€information€they€need€to€manageÐ  ° Ðthe€safety€of€hazardous€liquid€pipelines.€€Ð ì ˆ ÐÌIn€response€to€a€petition€from€the€American€Petroleum€Institute€(API)€and€the€Association€of€OilÐ œ8  ÐPipelines€(AOPL),€RSPA/OPS€extended€the€period€for€public€comment€on€the€NPRM€untilÐ t  ÐNovember€22,€2002€(67€FR€59045;€September€19,€2002).€€Based€on€written€comments€on€theÐ Lè  ÐNPRM,€RSPA€revised€the€proposed€annual€report€form€and€sought€advice€from€the€statutorilyÐ $À Ðmandated€hazardous€liquid€pipeline€advisory€committee€ð!ð€the€Technical€Hazardous€LiquidÐ ü˜ ÐPipeline€Safety€Advisory€Committee€ð!ð€at€its€March€25,€2003€meeting€(see€Docket€No.€RSPA„01„Ð Ôp Ð9832€for€meeting€minutes).€€RSPA/OPS€then€published€the€revised€report€form€for€further€publicÐ ¬H Ðcomment€(68€FR€28884;€May€27,€2003).€Ð „  ÐÌò òCommentsó óÐ 4 Ð ÐÌRSPA/OPS€received€comments€on€the€proposed€rule€from€API,€Enbridge€Energy€Company,€Inc.Ð ä#€  Ð(Enbridge),€and€Marathon€Pipe€Line,€LLC€(Marathon).€€API,€Enbridge,€and€BP€Pipelines€NorthÐ ¼%X" ÐAmerica€also€commented€on€the€revised€annual€report€form.€€This€section€of€the€preambleÐ ”'0!$ Ðsummarizes€the€comments€and€explains€how€we€considered€them€in€this€final€rule.Ð l)#& ÐÌÐ -¸&* ЇòòState„by„state€reportingóó.€€Both€Enbridge€and€API€commented€on€alleged€difficulties€that€couldÐ d Ðresult€from€the€proposal€to€collect€hazardous€liquid€pipeline€information€on€a€state„by„state€basis.€Ð <Ø ÐRSPA/OPS€recognizes€that€the€hazardous€liquid€pipeline€industry€has€not€had€business€reasonsÐ  ° Ðfor€maintaining€the€requested€data€by€state.€€And,€because€pipeline€companies€now€reportÐ ì ˆ Ðmileage€of€the€hazardous€liquid€pipelines€to€the€National€Pipeline€Mapping€System€(NPMS),Ð Ä ` ÐRSPA/OPS€already€has€the€data€to€determine€operator€mileage€by€state.€€RSPA/OPS€isÐ œ8  Ðexamining€how€future€enhancements€to€the€NPMS€might€enable€us€to€efficiently€obtainÐ t  Ðadditional€state„by„state€information€without€imposing€additional€data€collection€requirements€onÐ Lè  Ðhazardous€liquid€pipeline€operators.Ð $À ÐÌEnbridge€urged€RSPA/OPS€to€collect€only€mileage€information€by€state€and€to€collect€all€otherÐ Ôp Ðdata€by€pipeline€system.€€It€noted€that€volume,€capacity,€construction,€and€integrity€assessmentÐ ¬H Ðdata€is€now€maintained€only€for€pipeline€systems,€and€that€reporting€this€information€by€stateÐ „  Ðwould€require€extensive€manual€sorting€of€data.€€Enbridge€alleged€that€such€data€would€beÐ \ø Ðchallenging€for€RSPA/OPS€to€validate,€decipher,€and€analyze.€€For€example,€Enbridge€noted€thatÐ 4 Ð Ðstate„by„state€data€could€not€be€used€to€trend€commodity„specific€information€or€integrityÐ  "¨ Ðassessment€data€by€line€size€or€decade€of€construction.€€Moreover,€for€pipelines€crossing€two€orÐ ä#€  Ðmore€states,€the€same€volumes€would€appear€on€the€reports€for€upstream€and€downstream€states,Ð ¼%X" Ðgreatly€complicating€any€cumulative€volume€analysis.€Ð ”'0!$ ÐÌAPI€had€similar€concerns,€alleging€that€the€proposed€annual€report€form€would€result€in€poorÐ D+à$( Ðquality€national€data€and€an€inability€to€analyze€or€understand€the€national€pipeline€system.€€AsÐ -¸&* Ðan€example,€it€noted€that€if€operators€were€to€report€only€aggregate€data€for€all€pipelines€operatedÐ d Ðin€a€state,€RSPA/OPS€could€not€discern€differences€in€corrosion€rates€based€on€commoditiesÐ <Ø Ðtransported.€€API€also€noted€that€the€Part€195€integrity€management€rules€require€operators€toÐ  ° Ðintegrate€a€wide€range€of€risk„related€information€on€particular€pipelines.€€It€sees€no€need€toÐ ì ˆ Ðmaintain€this€information€by€state.€€API€suggested€that€RSPA/OPS€develop€a€form€similar€to€theÐ Ä ` Ðone€used€in€the€industryððs€Pipeline€Performance€Tracking€System€(PPTS)€that€would€focus€onÐ œ8  Ðdata€about€each€operatorððs€system€rather€than€on€data€aggregated€by€state.€€Separate€entries€couldÐ t  Ðprovide€interstate€and€intrastate€mileage€in€each€state.€€API€alleged€that€this€approach€wouldÐ Lè  Ðreduce€erroneous€data€and€the€reporting€burden€and€give€RSPA/OPS€a€good€understanding€ofÐ $À Ðnationwide€performance.€€In€addition,€API€suggested€the€approach€should€satisfy€the€needs€ofÐ ü˜ Ðindividual€states€because€each€stateððs€leaks€per€mile€ð!ð€determined€from€the€mileage€data€and€theÐ Ôp Ðoperatorsðð€accident€reports€ð!ð€could€be€compared€to€the€national€leak€rate.Ð ¬H ÐÌòòà  àRSPA€responseóó.€€In€this€final€rule€RSPA/OPS€has€simplified€the€form€by€dropping€theÐ \ø Ðstate„by„state€requirement€and€separating€the€decade„installed€information€into€a€separateÐ 4 Ð Ðcategory,€similar€to€that€requested€for€gas€transmission€lines€on€òòthe€Gas€Transmission€OperatorÐ  "¨ ÐAnnual€Report€óóform.€€These€changes€reduce€the€complexity€of€the€form€and€the€reporting€burden.Ð ä#€  ÐÌAs€stated€above,€RSPA/OPS€is€considering€how€state„by„state€information€might€be€obtainedÐ ”'0!$ Ðthrough€the€NPMS€or€by€other€methods.€€RSPA/OPS€believes€it€is€important€to€have€state„by„Ð l)#& Ðstate€information€for€various€purposes,€including€meeting€the€informational€needs€of€the€stateÐ D+à$( Ðpipeline€safety€programs€and€other€interested€stakeholders,€and€for€a€variety€of€trending€purposes,Ð -¸&* Ðsuch€as€examining€state€population€increase€and€encroachment€impacts€on€pipelines.Ð d ÐÌòòHistorical€integrity€assessmentóó.€€Enbridge€alleged€that€requiring€operators€to€report€annually€theÐ  ° Ðpercentage€of€pipeline€integrity€assessments€(hydrostatic€testing€and€internal€inspection)€done€inÐ ì ˆ Ðthe€decade€before€the€reporting€year€would€not€yield€meaningful€data.€€It€explained€that€as€totalÐ Ä ` Ðsystem€mileage€changes€(through€purchases,€sales,€abandonments,€or€conversions),€the€reportedÐ œ8  Ðpercentages€would€also€change,€leading€to€invalid€data€and€conclusions.€€API€observed€that€theÐ t  Ðproposed€internal€inspection€information€would€not€be€useful€as€a€baseline€for€comparison€withÐ Lè  Ðinspections€in€future€years€under€the€integrity€management€requirements€because€operators€wouldÐ $À Ðhave€to€estimate€much€of€the€data.€€Enbridge€suggested€that€we€limit€assessment€information€toÐ ü˜ Ðthe€number€of€miles€assessed€during€the€reporting€year€and€that€we€use€a€different€approach,€suchÐ Ôp Ðas€an€industry€survey,€to€collect€historical€assessment€information.€€API€thought€the€percentageÐ ¬H Ðassessed€question€could€result€in€a€percentage€larger€than€the€nationwide€pipeline€mileageÐ „  Ðbecause€some€systems€may€be€pigged€several€times€in€a€10-year€period,€some€with€deformationÐ \ø Ðtools€only,€and€others€with€both€metal€loss€tools€and€deformation€tools.€€Both€Enbridge€and€APIÐ 4 Ð Ðsaid€internal€inspection€results€be€reported€by€type€of€defect€rather€than€by€the€technology€of€theÐ  "¨ Ðinspection€tool.Ð ä#€  ÐÌòòà  àRSPA€responseóó.€€RSPA/OPS€agrees€that€the€collection€of€historical€integrity€assessmentÐ ”'0!$ Ðinformation€should€be€closely€aligned€with€RSPA/OPSðð€Integrity€Management€Program.€€InÐ l)#& Ðresponse€to€comments,€RSPA/OPS€published€a€revised€form€on€May€27,€2003,€to€reflect€thisÐ D+à$( Ðapproach.€€RSPA/OPS€will€obtain€historical€information€through€the€Integrity€ManagementÐ -¸&* Ðinspections.€€The€final€form€adopted€herewith€requests€more€detailed€information€about€integrityÐ d Ðassessments€done€during€each€calendar€year.Ð <Ø ÐÌòòGathering€linesóó.€€Enbridge€argued€that€the€annual€report€requirement€should€not€apply€toÐ ì ˆ Ðgathering€lines,€particularly€gathering€lines€that€RSPA/OPS€does€not€regulate.€€It€reasoned€thatÐ Ä ` Ðthe€information€collected€would€be€incomplete€because€the€requirement€would€not€apply€to€allÐ œ8  Ðoperators€of€gathering€lines,€just€those€who€operate€pipelines€regulated€by€Part€195.€€API€addedÐ t  Ðthat€because€the€vast€majority€of€gathering€lines€not€regulated€by€Part€195€are€operated€byÐ Lè  Ðcompanies€that€do€not€operate€Part€195€regulated€pipelines,€the€proposed€annual€report€would€notÐ $À Ðdisclose€the€nationððs€total€gathering€line€mileage.€€Ð ü˜ ÐÌòòà  àRSPA€responseóó.€€In€the€final€annual€report€form,€RSPA/OPS€has€eliminated€theÐ ¬H Ðinformation€on€gathering€pipeline€mileage€not€subject€to€Part€195,€but€will€require€information€onÐ „  Ðgathering€lines€that€are€subject€to€Part€195.Ð \ø ÐÌòòAnhydrous€ammoniaóó.€€API€commented€that€anhydrous€ammonia€pipeline€data€should€not€beÐ  "¨ Ðcombined€with€carbon€dioxide€pipeline€data€for€the€purposes€of€analysis.€€It€suggested€thatÐ ä#€  Ðanhydrous€ammonia€be€included€with€highly€volatile€liquids€(HVL)€because€the€physicalÐ ¼%X" Ðproperties€are€similar.€€Ð ”'0!$ ÐÌòòà  àRSPA€responseóó.€€RSPA/OPS€concurs.€The€final€annual€report€form€includes€anhydrousÐ D+à$( Ðammonia€with€HVLs.Ð -¸&* ЇòòPre„1940€pipeóó.€€API€commented€that€lumping€all€pre-1940€pipe€into€a€single€category€couldÐ d Ðdiminish€the€understanding€of€technological€differences€between€1920s€and€1930s€pipe.€€It€calledÐ <Ø Ðthe€differences€major,€and€was€concerned€that€whole€decades€of€pipe€might€be€unwittinglyÐ  ° Ðcondemned.Ð ì ˆ ÐÌòòà  àRSPA€responseóó.€€RSPA/OPS€concurs.€€The€final€annual€report€form€requires€reporting€byÐ œ8  Ðdecade€of€installation€beginning€with€pre„1920s€and€for€each€decade€thereafter.Ð t  ÐÌòòCost€of€complianceóó.€€API€disputed€RSPA/OPSðð€estimate€of€the€cost€of€compliance€with€theÐ $À Ðproposed€annual€report€requirement,€calling€it€grossly€underestimated.€€It€said€most€data€is€notÐ ü˜ Ðreadily€available€electronically,€is€not€subdivided€or€identified€in€operator€records€by€state,€andÐ Ôp Ðwould€require€extensive€hands„on€research€and€correlation.€€Further,€API€said€the€assumed€hourlyÐ ¬H Ðrate€($40/hour)€is€unrealistically€low,€since€the€identification,€coordination€and€oversight€of€dataÐ „  Ðcollection,€interpretation,€and€management€would€be€conducted€by€experienced€engineeringÐ \ø Ðpersonnel€at€two€to€three€times€this€rate.Ð 4 Ð ÐÌòòà  àRSPA€responseóó.€€The€final€Regulatory€Evaluation€(included€herein)€takes€this€commentÐ ä#€  Ðinto€account€in€estimating€industry€costs.Ð ¼%X" ÐÌòòFurther€notice€and€response€timeóó.€€API€urged€RSPA/OPS€to€publish€another€notice€for€publicÐ l)#& Ðcomment€based€on€comments€to€the€NPRM€before€adopting€a€final€annual€report€form.€€It€alsoÐ D+à$( Ðsaid€operators€would€not€be€able€to€respond€to€the€NPRMððs€proposed€data€collection€in€the€60-90Ð -¸&* Ðdays€suggested€in€the€NPRM.Ð d ÐÌòòà  àRSPA€responseóó.€€As€stated€above,€following€the€close€of€the€extended€comment€period€onÐ  ° Ðthe€NPRM,€RSPA€posted€a€revised€form€in€the€docket€and€invited€further€public€comment€(68Ð ì ˆ ÐFR€28884;€May€27,€2003).€€API€and€Enbridge€submitted€additional€comments€on€details,Ð Ä ` Ðorganization,€and€design€of€the€form€that€helped€to€clarify€entries,€correct€errors,€and€provideÐ œ8  Ðconsistency.€€The€final€report€form€reflects€these€additional€comments.€€The€final€annual€reportÐ t  Ðform€substantially€addresses€all€objections€to€the€proposed€form.€€Recognizing€that€industry€willÐ Lè  Ðneed€some€time€to€gather€the€requested€information,€RSPA/OPS€is€delaying€the€filing€of€theÐ $À Ðinitial€hazardous€liquid€pipeline€annual€report€form€until€June€15,€2005.€€This€initial€report€wouldÐ ü˜ Ðbe€for€calendar€year€2004.€€Recognizing€that€many€operators€are€prepared€for€early€submissionÐ Ôp Ðbecause€of€industryððs€need€for€having€an€earlier€submission€for€a€variety€of€purposes,€includingÐ ¬H Ðmeasuring€national€progress€of€meeting€new€integrity€management€requirements,€RSPA/OPSÐ „  Ðwill€accept€voluntary€submissions€at€an€operatorððs€discretion€at€any€time.Ð \ø ÐÌÔ‡<Xö¸XXXö¸ÔòòUser€feesóó.€€Marathon€questioned€how€the€proposed€annual€report€data€Ô#†Xö¸XX<Xö¸¸H#Ôwould€relate€to€the€annualÐ  "¨ Ðuser€fee€assessments.Ð ä#€  ÐÌòòà  àRSPA€responseóó.€€RSPA/OPS€will€use€information€from€the€new€hazardous€liquid€pipelineÐ ”'0!$ Ðannual€report€to€calculate€annual€user€fee€assessments.€€This€is€similar€to€the€procedure€used€forÐ l)#& Ðcalculating€the€gas€transmission€pipeline€user€fees€based€on€information€in€the€gas€transmission€Ð  D+à$( Ðpipeline€annual€reports.Ð d ÐÌò òReporting€Detailsó óÐ  ° ÐÌIn€compliance€with€the€new€ðð195.49,€each€operator€must€submit€by€March€15€of€each€year€anÐ Ä ` Ðannual€report€on€Form€RSPA€F7000.1„1€for€each€of€the€following€types€of€pipeline€systemsÐ œ8  Ðoperated€at€the€end€of€the€previous€year:€crude€oil,€highly€volatile€liquid€(including€anhydrousÐ t  Ðammonia),€€petroleum€products,€and€carbon€dioxide.€€System€type€is€determined€by€theÐ Lè  Ðcommodity€the€system€transported€in€largest€volume.€€For€example,€if€a€pipeline€systemÐ $À Ðtransports€only€crude€oil,€it€would€be€a€crude€oil€type€system.€€If€a€pipeline€system€transportsÐ ü˜ Ðbatches€of€crude€oil€and€petroleum€products,€it€would€be€either€a€crude€oil€or€petroleum€productÐ Ôp Ðtype€system,€depending€on€which€commodity€is€transported€in€larger€volume.Ð ¬H ÐÌThe€annual€report€form€asks€whether€the€report€is€for€crude€oil,€highly€volatile€liquid€(includingÐ \ø Ðanhydrous€ammonia),€petroleum€products,€or€carbon€dioxide€type€systems€and€the€volumes€ofÐ 4 Ð Ðthese€commodities€transported€by€the€system.€€The€form€also€asks€for€pipeline€mileage,Ð  "¨ Ðcathodically€protected€versus€unprotected,€coated€versus€bare€steel,€steel€pipeline€by€decade€andÐ ä#€  Ðdiameter,€electric€resistance€welded€(ERW)€pipeline€by€decade€and€weld€type,€miles€of€regulatedÐ ¼%X" Ðgathering€lines,€and€information€on€breakout€tanks€and€integrity€assessment.Ð ”'0!$ ÐÌThe€first€annual€report€form€is€due€March€15,€2005,€and€includes€data€for€calendar€year€2004€forÐ D+à$( Ðsystems€operated€at€the€end€of€2004.€€Operators€can€submit€the€form€in€hard€copy€to€theÐ -¸&* ÐRSPA/OPS€Information€Resources€Manager,€at€the€same€address€for€filing€hazardous€liquidÐ d Ðaccident€reports:Ð <Ø ÐÌà0  àInformation€Resources€ManagerÐì ˆ(#(# Ðà  àOffice€of€Pipeline€SafetyÐ Ä ` Ðà  àRoom€2301Ð œ8  Ðà0  à400€7òòthóó€St.€S.W.Ðt (#(# Ðà0  àWashington,€€€€D.C.€€€€20590ÐLè (#(# ÐÌAlternatively,€reports€may€be€submitted€electronically€via€the€RSPA/OPS€Online€Data€EntryÐ ü˜ ÐSystem,€a€Web„based€reporting€system€accessible€at€Ô4‚ ÔÝ‚sÍOÝÔÿÔòòÝ  ÝÔ5  Ôhttp://ops.dot.gov.Ô6¹TÔÝ‚sÍOÍTÐsaÝóóÔÿÔÝ  ÝÔ7ÐûTÔ€€€Electronic€submissionÐ Ôp Ðwill€be€available€by€the€end€of€2004.€€RSPA/OPS€is€examining€how€much€of€the€informationÐ ¬H Ðrequested€on€the€annual€report€form€may,€in€the€future,€be€submitted€via€the€National€PipelineÐ „  ÐMapping€System.Ð \ø ÐÌThe€final€annual€report€form€and€instructions€for€completing€the€form€are€published€with€thisÐ  "¨ ÐFinal€Rule.€€Blank€forms€and€instructions€may€also€be€obtained€at€Ô4‚oÝ RÔÝ‚sÍOÝÔÿÔòòÝ  ÝÔ5  Ôhttp://ops.dot.govÔ6WWÔÝ‚sÍOkWÝóóÔÿÔÝ  ÝÔ7_Ö™WÔ€under€theÐ ä#€  ÐFORMS€section€of€ONLINE€LIBRARY,€or€from€the€Information€Resources€Manager€at€theÐ ¼%X" Ðaddress€provided€above.Ð ”'0!$ ÐÌò òREGULATORY€ANALYSES€AND€NOTICESó ó:Ð D+à$( ÐòòÐ $-À&* ÐExecutive€Order€12866€and€DOT€Policies€and€ProceduresóóÐ d ÐÌRSPA€does€not€consider€this€rulemaking€to€be€a€significant€regulatory€action€under€Section€3(f)Ð  ° Ðof€Executive€Order€12866€(58€FR€51735;€October€4,€1993).€€RSPA€also€does€not€consider€thisÐ ì ˆ Ðrulemaking€to€be€significant€under€DOTððs€regulatory€policies€and€procedures€(44€FR€11034;Ð Ä ` ÐFebruary€26,€1979).€€Below€is€a€summary€of€the€regulatory€evaluation€which€can€be€found€in€theÐ œ8  Ðpublic€docket€for€this€final€rule.Ð t  ÐÌòòRegulatory€EvaluationóóÐ $À ÐÌTwo€comments€were€received€on€the€cost/benefit€analysis€of€the€proposed€rule€from€a€majorÐ Ôp Ðhazardous€liquid€operator€and€a€trade€association€representing€hazardous€liquid€operators.€€TheyÐ ¬H Ðcriticized€the€cost„benefit€analysis€for€underestimating€the€costs€of€the€proposed€rule.€Ð „  ÐSpecifically€the€trade€association€stated€that€the€$40€per€hour€labor€cost€used€is€too€low.€€RSPAÐ \ø Ðconcurs€that€we€may€have€underestimated€the€fully€loaded€labor€cost€for€hazardous€liquidÐ 4 Ð Ðpipeline€personnel.€€Therefore,€RSPA€is€doubling€the€per€hour€labor€cost€for€hazardous€liquidÐ  "¨ Ðpipeline€personnel€to€$80€per€hour.Ð ä#€  ÐÌRSPA€was€also€criticized€for€underestimating€the€time€to€perform€the€necessary€paperwork.€Ð ”'0!$ ÐRSPA€concurs€in€part.€€RSPA€believes€that€the€most€burdensome€of€the€proposals€was€theÐ l)#& Ðrequirement€for€collection€of€the€data€by€state.€€This€provision€is€being€removed€from€the€finalÐ D+à$( Ðrule.€€Additionally,€RSPA€is€removing€the€provision€for€the€collection€of€data€on€integrityÐ -¸&* Ðmanagement€as€well.€€RSPA€was€also€criticized€for€proposing€the€collection€of€data€on€currentlyÐ d Ðunregulated€gathering€lines.€€RSPA€agrees€with€these€comments€and€is€removing€theseÐ <Ø Ðrequirements€in€the€final€rule.€€Additional€changes€were€made€in€regards€to€collection€of€cathodicÐ  ° Ðprotection€and€pipe€diameter€information,€as€discussed€in€the€preamble.Ð ì ˆ ÐÌEven€with€these€changes,€€RSPAððs€time€estimates€for€preparing€hazardous€liquid€pipeline€annualÐ œ8  Ðreports€need€to€be€adjusted.€€RSPA€is€doubling€the€estimated€time€for€completion€of€an€annualÐ t  Ðreport€from€that€used€in€the€proposed€rule.€€We€now€estimate€each€operator€will€need,€on€average,Ð Lè  Ð24€hours€to€complete€the€annual€report€in€the€first€year€and€12€hours€year€in€each€subsequentÐ $À Ðyear.Ð ü˜ ÐÌò òó óBenefitsòòóóÐ ¬H ÐThe€hazardous€liquid€pipeline€system€inventory€information€is€needed€for:€meaningful€trendingÐ „  Ðof€hazardous€liquid€pipeline€accident€safety€data;€risk€assessment;€recommendations€regardingÐ \ø Ðrehabilitation€or€replacement€of€pipeline€segments;€analysis€of€costs€and€benefits;€andÐ 4 Ð Ðcomparison€of€€individual€operator€performance€against€industry€performance.€€This€safetyÐ  "¨ Ðinformation€will€be€used€by€RSPA/OPS€for€assessment€of€pipeline€risks,€regulatory€development,Ð ä#€  Ðand€programmatic€resource€allocation.€€RSPA/OPS€also€uses€the€information€in€monitoringÐ ¼%X" Ðindustry€performance€and€regulatory€compliance,€and€for€planning€standard€safety€inspections€ofÐ ”'0!$ Ðoperators.€€States,€local€community€planners,€and€emergency€responders€will€benefit€from€accessÐ l)#& Ðto€information€about€hazardous€liquid€pipeline€systems.€€Industry€will€benefit€when€RSPA/OPS€Ð  D+à$( Ðestablishes€a€baseline€measurement€for€pipeline€company€safety€performance€using€the€collectedÐ d Ðdata.Ð <Ø ЀÌCostsÐ ì ˆ ÐThe€form€asks€for€information€that€should€be€readily€available€to€the€operator€on€their€ownÐ Ä ` Ðdatabases.€€RSPA€expects€that€the€time€required€to€complete€the€form€will€decrease€as€operatorsÐ œ8  Ðadjust€their€computerized€systems€to€track€the€requested€information.€€RSPA€estimates€it€willÐ t  Ðtake€an€operator€24€hours€€to€complete€the€form€the€first€year€and€half€as€long€(12€hours€annually)Ð Lè  Ðin€subsequent€years.€€Ð $À Ðà  àÌBased€on€an€analysis€of€operators€who€pay€user€fees,€there€are€208€regulated€operators€ofÐ Ôp Ðhazardous€liquid€pipelines€in€the€U.S.€€€Ð ¬H Ðò òó óÌÔ‡Xö¸XXXö¸ÔRSPA€previously€estimated€the€hourly€cost€of€the€person€completing€the€form€at€$40.€€This€wasÐ \ø Ðbased€on€the€U.S.€Department€of€Laborððs€National€Occupational€Employment€and€WageÐ 4 Ð ÐEarnings€data€for€1999.€€According€to€that€data,€the€hourly€wage€for€a€Transportation,€Storage,Ð  "¨ Ðand€Distribution€Manager€(the€closest€category€to€a€pipeline€manager)€was€$26.03€per€hour.€€TheÐ ä#€  Ð$26.03€figure€was€multiplied€by€1.35€to€account€for€fringe€benefits€($26.03€x€1.35€=€$35.14).€Ð ¼%X" ÐRSPA€added€an€inflation€factor€of€14%€to€account€for€inflation€from€1999€to€2002€($35.14€x€1.14Ð ”'0!$ Ð=€$40.05).€€However,€based€on€comments€from€industry€trade€associations,€RSPA€is€revising€itsÐ l)#& Ðestimate€to€$80€per€hour.€€Ô#†Xö¸XXXö¸Lk#ԀРD+à$( ÐÐ -¸&* ÐRSPA€estimates€that€it€will€take€an€operator€about€24€hours€to€complete€the€form€the€first€year.Ô‡Xö¸XXXö¸Ô€Ð d ÐBased€on€anÔ#†Xö¸XXXö¸Po#Ô€average€cost€of€$80€per€hour,€the€cost€to€industry€of€completing€the€form€for€the€firstÐ <Ø Ðyear€will€be€approximately€$400,000€(208€forms€x€24€hours€x€$80€per€hour€=€$399,360).€€TotalÐ  ° Ðhours€expended€by€industry€to€complete€the€form€in€the€first€year€will€be€approximately€5,000Ð ì ˆ Ðhours€(208€forms€x€24€hours€€=€4,992€hours).Ð Ä ` ÐÌAfter€the€first€year,€adjustments€to€company€databases€and€computer€systems€will€likely€reduceÐ t  Ðthe€annual€industry€cost€to€approximately€$200,000€(208€x€12€x€$80€=€$199,680).€€After€the€firstÐ Lè  Ðyear,€total€hours€expended€by€industry€to€complete€the€form€will€be€approximately€€2,500€hoursÐ $À Ð(208€forms€x€12€hours€€=€2,496€hours).Ð ü˜ ÐÌConclusionÐ ¬H ÐRSPA€believes€that€the€initial€annual€cost€of€$400,000€and€ongoing€annual€cost€of€$200,000€is€aÐ „  Ðmodest€burden€on€the€hazardous€liquid€pipeline€industry.€€The€benefits€accruing€to€RSPA€and€theÐ \ø Ðpipeline€industry€through€the€increased€utility€of€the€hazardous€liquid€accident€data€should€easilyÐ 4 Ð Ðoutweigh€this€modest€cost.€€The€additional€information€will€allow€RSPA/OPS€and€the€hazardousÐ  "¨ Ðliquid€pipeline€industry€to€identify€safety€issues€and€trends,€and€allow€operators€to€make€changesÐ ä#€  Ðto€procedures€and€practices€that€will€ultimately€reduce€pipeline€accidents€and€improve€pipelineÐ ¼%X" Ðsafety.Ð ”'0!$ ÐÌòòRegulatory€Flexibility€ActóóÐ D+à$( ÐÐ -¸&* ÐThe€final€ruleððs€first€year€industry€cost€of€$400,000,€divided€by€the€208€hazardous€liquid€pipelineÐ d Ðoperators,€results€in€an€average€cost€of€$2,000€per€operator.€€€Subsequent€annual€cost€to€completeÐ <Ø Ðthe€form€is€approximately€$1,000€per€operator€($200,000€divided€by€208€operators).€€Ð  ° ÐÌThe€Small€Business€Administration€(SBA)€criteria€for€defining€a€small€entity€in€the€hazardousÐ Ä ` Ðliquid€pipeline€industry€is€1,500€employees,€as€specified€in€the€North€American€IndustryÐ œ8  ÐClassification€System€(NAICS)€codes.€€The€NAICS€codes€relevant€to€hazardous€liquid€pipelinesÐ t  Ðare€code€486110€ð!ð€Pipeline€Transportation€of€Crude€Oil€and€code€486910€ð!ð€PipelineÐ Lè  ÐTransportation€of€Refined€Petroleum€Products.€€RSPA€does€not€collect€information€on€number€ofÐ $À Ðemployees€or€revenues€for€pipeline€operators.€€Such€a€collection€would€require€OMB€approval.€Ð ü˜ ÐRSPA€nevertheless€continues€to€seek€information€about€the€number€of€small€pipeline€operatorsÐ Ôp Ðfrom€which€to€more€fully€determine€impact€on€small€entities,€i.e.€companies€with€less€than€1,500Ð ¬H Ðemployees,€including€employees€of€parent€corporations.Ð „  ÐÌRSPA€has€reviewed€the€data€it€collects€from€the€hazardous€liquid€pipeline€industry€and€hasÐ 4 Ð Ðestimated€there€are€probably€10€„€20€small€entities€in€this€industry.€€Several€of€the€operators€doÐ  "¨ Ðnot€transport€petroleum€products,€but€rather€transport€carbon€dioxide,€ammonia,€or€chlorine€andÐ ä#€  Ðmay€not€be€indirect€competition€with€large€pipeline€operators.€€Other€small€operators€remainÐ ¼%X" Ðcompetitive€as€they€have€developed€niche€markets€and€may€supply€only€a€small€number€of€Ð ”'0!$ Ðcustomers.€€Ð l)#& ÐÌIn€the€proposed€rule€on€Hazardous€Liquid€Pipeline€Accident€Reporting€Revisions€(66€FR€15681;Ð -¸&* ÐMarch€20,€2001),€RSPA/OPS€sought€input€from€the€public€on€the€impact€of€the€proposed€annualÐ d Ðreport€on€small€entities.€€€We€received€no€responses€to€this€request€for€comments€from€smallÐ <Ø Ðentities.€€However,€the€SBA€Chief€Counsel€for€Advocacy€provided€comments€on€behalf€of€smallÐ  ° Ðbusinesses.€€SBA€asked€how€many€hazardous€liquid€pipeline€operators€RSPA/OPS€wouldÐ ì ˆ Ðcharacterize€as€small€operators.€€€We€believe€the€answer€is€between€10€and€20,€as€noted€above.€Ð Ä ` ÐAnd,€we€believe€the€impact€of€this€rule€will€be€proportionate€to€the€size€of€the€company.€€SmallerÐ œ8  Ðcompanies€tend€to€have€less€pipeline€mileage€and€will€likely€have€to€collect€less€information€at€aÐ t  Ðlower€cost.€€This€rule€will€cost€an€average€company€less€than€$2,000€the€first€year€and€$1,000€perÐ Lè  Ðyear€thereafter.€€RSPA€believes€this€will€be€even€less€for€small€operators.Ð $À ÐÌIf€you€are€an€operator€of€a€small€pipeline€company,€RSPA/OPS€requests€that€you€identifyÐ Ôp Ðyourself€to€help€us€more€accurately€determine€impact€on€small€businesses€in€this€and€futureÐ ¬H Ðrulemakings€(see€the€ADDRESSES€and€SUPPLEMENTARY€INFORMATION€sections€aboveÐ „  Ðfor€how€to€provide€comments).€€€Ð \ø ÐÌBased€on€the€small€cost€to€companies€of€any€size€and€to€the€industry€at€large,€I€certify€pursuant€toÐ  "¨ Ðsection€605€of€the€Regulatory€Flexibility€Act€(5€U.S.C.€605),€that€this€rulemaking€would€not€haveÐ ä#€  Ða€significant€impact€on€a€substantial€number€of€small€entities.€Ð ¼%X" ÐÌòòPaperwork€Reduction€ActóóÐ l)#& ÐÌBelow€is€a€summary€of€the€Paperwork€Reduction€Analysis.€€A€complete€copy€is€available€forÐ -¸&* Ðcopy€and€review€in€the€public€docket€for€this€final€rule.Ð d ÐÌThis€final€rule€contains€information€collection€requirements.€€As€required€by€the€PaperworkÐ  ° ÐReduction€Act€of€1995€(44€U.S.C.€3507€(d)),€the€DOT€has€submitted€a€copy€of€the€PaperworkÐ ì ˆ ÐReduction€Act€Analysis€to€the€Office€of€Management€and€Budget€(OMB)€for€its€review.€€TheÐ Ä ` Ðname€of€the€information€collection€is€òòTransportation€of€Hazardous€Liquids€by€PipelineÐ œ8  ÐRecordkeeping€and€Annual€Reportingóó.€€The€purpose€of€this€information€collection€is€to€improveÐ t  Ðthe€current€hazardous€liquid€pipeline€accident€information€collection.€Ð Lè  ÐÌNumber€of€Respondents€:€208Ð ü˜ ÐFrequency€of€Responses:€1Ð Ôp ÐAnnual€Burden:€24€hours€the€first€year€and€12€hours€per€year€thereafter€for€each€company.Ð ¬H ÐType€of€Respondent:€Hazardous€Liquid€Pipeline€OperatorsÐ „  ÐTotal€Annual€Burden:€4,992€hours€the€first€year€and€2,496€per€year€thereafterÐ \ø ÐÌÔ‡Xö¸XXXö¸ÔComments€on€the€paperwork€reduction€analysis€are€invited€on€(a)€the€need€for€the€proposedÐ  "¨ Ðcollection€of€information€for€the€proper€performance€of€the€functions€of€the€agency,€includingÐ ä#€  Ðwhether€the€information€will€have€practical€utility:€(b)€the€accuracy€of€the€agencyððs€estimated€ofÐ ¼%X" Ðthe€burden€of€the€proposed€collection€of€information€including€the€validity€of€the€methodologyÐ ”'0!$ Ðand€assumptions€used;€(c)€ways€to€enhance€the€quality,€utility,€and€clarity€of€the€information€to€beÐ l)#& Ðcollected;€and€(d)€ways€to€minimize€the€burden€of€the€collection€of€information€on€those€whoÐ D+à$( Ðrespond€including€the€use€of€the€appropriate€automated,€electronic,€mechanical,€or€otherÐ -¸&* Ðtechnological€collection€techniques.€€Send€comments€within€30€days€of€the€publication€of€thisÐ d Ðnotice€directly€to€the€Office€of€Management€and€Budget,€Office€of€Information€and€RegulatoryÐ <Ø ÐAffairs,€ATTN:€Desk€Officer,€Department€of€Transportation,€715€Jackson€Place,€NW,Ð  ° ÐWashington,€DC.€€Please€be€sure€to€include€the€docket€number€in€your€comments.Ô#†Xö¸XXXö¸´‰#ÔÐ ì ˆ ÐÌòòExecutive€Order€13084óóÐ œ8  ÐÌThis€final€rule€has€been€analyzed€in€accordance€with€the€principles€and€criteria€contained€inÐ Lè  ÐExecutive€Order€13175,€òòConsultation€and€Coordination€with€Indian€Tribal€Governmentsóó.€Ð $À ÐBecause€this€final€rule€would€not€significantly€or€uniquely€affect€the€communities€of€the€IndianÐ ü˜ Ðtribal€governments€and€would€not€impose€substantial€direct€compliance€costs,€the€funding€andÐ Ôp Ðconsultation€requirements€of€Executive€Order€13175€do€not€apply.Ð ¬H ÐÌòòExecutive€Order€13132óóà  àÐ \ø ÐÌThis€final€rule€has€been€analyzed€in€accordance€with€the€principles€and€criteria€contained€inÐ  "¨ ÐExecutive€Order€13132,€òòFederalismóó.€€The€final€rule€does€adopt€any€regulation€that€(1)€hasÐ ä#€  Ðsubstantial€direct€effects€on€the€States,€the€relationship€between€the€national€government€and€theÐ ¼%X" ÐStates,€or€the€distribution€of€power€and€responsibilities€among€the€various€levels€of€government;Ð ”'0!$ Ð(2)€imposes€substantial€direct€compliance€costs€on€State€and€local€governments;€or€(3)€preemptsÐ l)#& Ðstate€law.€€Therefore,€the€consultation€and€funding€requirements€of€Executive€Order€13132€do€notÐ D+à$( Ðapply.€Ð -¸&* ЇòòUnfunded€MandatesóóÐ d ÐÌThis€final€rule€does€not€impose€unfunded€mandates€under€the€Unfunded€Mandates€Reform€Act€ofÐ  ° Ð1995.€€It€would€not€result€in€costs€of€$100€million€or€more€to€either€State,€local,€or€tribalÐ ì ˆ Ðgovernments,€in€the€aggregate,€or€to€the€private€sector,€and€would€be€the€least€burdensomeÐ Ä ` Ðalternative€that€achieves€the€objective€of€the€rule.Ð œ8  ÐÌòòNational€Environmental€Policy€ActóóÐ Lè  ÐÌWe€have€analyzed€the€final€rule€for€purposes€of€the€National€Environmental€Policy€Act€(42Ð ü˜ ÐU.S.C.€4321€òòet€seq.óó)€and€have€concluded€that€this€action€would€not€significantly€affect€the€qualityÐ Ôp Ðof€the€environment.€€Because€the€final€rule€parallels€present€reporting€requirements€and€€practicesÐ ¬H Ðfor€gas€pipeline€operators€and€collection€of€information€does€not€result€in€an€environmentalÐ „  Ðimpact.Ð \ø ÐÌòòExecutive€Order€13211óóÐ  "¨ ÐÌRSPA€has€determined€that€this€rule€does€not€constitute€a€significant€energy€action€within€theÐ ¼%X" Ðmeaning€of€Executive€Order13211,€òòActions€Concerning€Regulations€That€Significantly€AffectÐ ”'0!$ ÐEnergy€Supply,€Distribution,€or€Useóó.€€This€rule€will€not€result€in€adverse€effects€on€energyÐ l)#& Ðsupply,€distribution,€or€use.€€Ð D+à$( ÐÐ -¸&* ÐòòExecutive€Order€13212óóÐ d ÐÌBecause€this€rule€is€not€an€energy„related€project,€Executive€Order13212,€òòActions€to€ExpediteÐ  ° ÐEnergy„Related€Projectsóó,€does€not€apply.Ð ì ˆ ÐÌòòExecutive€Order€12630óóÐ œ8  ÐÌThis€rule€does€not€affect€or€potentially€affect€the€use€or€value€of€real,€personal,€or€intellectualÐ Lè  Ðproperty.€€Therefore,€Executive€Order€12630,€òòGovernmental€Actions€and€Interference€withÐ $À ÐConstitutionally€Protected€Property€Rightsóó,€does€not€apply€to€this€rule.Ð ü˜ ÐÔ‡#Xö¸XXXö¸ÔÌList€of€Subjects€in€Ô#†Xö¸XX#Xö¸Tœ#ÔÔ‡Xö¸XXXö¸Ô49€CFR€Part€195Ð ¬H ÐAnhydrous€ammonia,€Carbon€dioxide,€Petroleum,€Pipeline€safety,€Reporting€and€recordkeepingÐ „  Ðrequirements.Ô#†Xö¸XXXö¸«œ#ÔÐ \ø ÐÌIn€consideration€of€the€foregoing,€RSPA€amends€49€CFR€Part€195€as€follows:Ð  "¨ ÐÌPART€195€„„€TRANSPORTATION€OF€HAZARDOUS€LIQUIDS€BY€PIPELINEÐ ¼%X" ÐÌ€€€€€1.€€The€authority€citation€for€part€195€continues€to€read€as€follows:Ð l)#& Ѐ€€€€Authority:€49€U.S.C.€5103,€60102,€60104,€60108,€60109,€60118;€and€49€CFR€1.53Ð D+à$( ÐÐ -¸&* Ѐ€€€€2.€€The€title€of€Subpart€B€is€revised€to€read€as€follows:Ð d ÐòòSubpart€Bð!ðAnnual,€Accident,€and€Safety„Related€Condition€ReportingóóÐ <Ø ÐÌ€€€€3.€€Section€195.49€is€added€to€Subpart€B€to€read€asò òó ó€follows:Ð ì ˆ Ðòòðð€195.49€Annual€reportóó.Ð Ä ` Ѐ€€€Beginning€no€later€than€June€15,€2005,€each€operator€mustÔ‡#Xö¸XXXö¸Ô€Ô#†Xö¸XX#Xö¸° #Ôannually€complete€and€submit€DOTÐ œ8  Ðform€RSPA€F€7000„1.1€for€each€type€of€hazardous€liquid€pipeline€facility€operated€at€the€end€ofÐ t  Ðthe€previous€year.€€A€separate€report€is€required€for€crude€oil,€HVL€(including€anhydrousÐ Lè  Ðammonia),€petroleum€products,€and€carbon€dioxide€pipelines.€€Operators€are€encouraged,€but€notÐ $À Ðrequired,€to€file€an€annual€report€by€June€15,€2004,€for€calendar€year€2003.Ð ü˜ ÐÌIssued€in€Washington,€D.C.€on€€________________________Ð ¬H ÐÌÌSamuel€G.€BonassoÐ 4 Ð ÐDeputy€Administratorà@ìì*ìà