ENERGY AND ENVIRONMENT CABINET

Public Service Commission

(Amendment)

 

††††† 807 KAR 5:027. Gas pipeline safety; reports of leaks; drug testing.

 

††††† RELATES TO: KRS Chapter 278, 49 C.F.R. Parts[Part] 191, 192, 199, 49 U.S.C. 1671

††††† STATUTORY AUTHORITY: KRS 278.040(3), 278.230(3), 278.495

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 278.040(3) provides that the commission may adopt reasonable administrative regulations to implement the provisions of KRS Chapter 278 and to investigate methods and practices of utilities subject to commission jurisdiction. KRS 278.230(3) provides that utilities shall file any reports reasonably required by the commission. KRS 278.495 provides that the commission may promulgate administrative regulations consistent with federal pipeline safety laws. This administrative regulation establishes rules which apply to gas pipeline safety, reports of leaks, and drug testing by operators of natural gas facilities[utilities].

 

††††† Section 1. Definition. (1) "Operator" means any utility, county, or city that is subject to the Commissionís jurisdiction under KRS 278.495(2).

 

††††† Section 2. Gas Pipeline Safety. Each operator shall comply with the minimum federal safety requirements for pipeline facilities set forth in 49 C.F.R. Part 192.

 

††††† Section 3. Reports. Each operator that files an incident notice/report, a safety-related condition report, or an annual report with the United States Department of Transportation ("USDOT") pursuant to 49 C.F.R. Part 191 shall concurrently file such report with the Commission by electronic mail to Pipeline.Safety@ky.gov.

 

††††† Section 4. Drug and Alcohol Testing. Each operator shall comply with 49 C.F.R. Part 199.

 

††††† Section 5. Odorization of Gas. Each Operator shall conduct sampling of combustible gases to assure proper concentrations of odorant in accordance with this section. (1) The operator shall sample gases in each separately odorized system at approximate furthest point from injection of odorant or sampling point(s) identified by engineering studies.

††††† (2) Sampling shall be conducted with equipment designed to detect and verify proper level of odorant.

††††† (3) Separately odorized systems with ten (10) or fewer customers shall be sampled for proper odorant level at least once each ninety-five (95) days.

††††† (4) Separately odorized systems with more than ten (10) customers shall be sampled for proper odorant level at least once every thirty (30) days.

 

††††† Section 6. Inspection prior to service connection. Each operator shall perform a leak test on all piping downstream from the meter for gas leaks, each time gas is turned on, by performing a dial check or pressure test in accordance with accepted industry practices when all appliances are turned off. The operator shall refuse to turn on gas until all gas leaks so disclosed have been properly repaired. [Definitions. (1) "Incident" means a gas leak, accident, or other event on a pipeline which requires the utility to notify United States Department of Transportation (USDOT) or the commission.

††††† (2) "Pipeline facilities" includes, without limitation, new and existing pipe, right-of-way, and any equipment, facility, or building used in transportation of gas or treatment of gas during the course of transportation.

††††† (3) "System" means all pipeline facilities used by a utility in transportation of gas, including but not limited to, line pipe, valves and other appurtenances connected to line pipe, compressor units, fabricated assemblies associated with compressor units, metering (including customers' meters) and delivery stations, and fabricated assemblies in metering and delivery stations.

††††† (4) "Test failure" means a break or rupture that occurs during strength-proof testing of transmission or gathering lines that is of such magnitude as to require repair before continuation of the test.

††††† (5) "Transportation of gas" means the gathering, transmission, or distribution of gas by pipeline, or storage of gas in or effecting interstate, intrastate or foreign commerce.

 

††††† Section 2. Scope. (1) This administrative regulation prescribes requirements for reporting gas leaks that are not intended by the utility and that require immediate or scheduled repair and of test failures as defined in Section 1(4) of this administrative regulation.

††††† (2) This administrative regulation applies to leaks and test failures that occur in the gathering of gas located in the following areas:

††††† (a) An area within the limits of any incorporated or unincorporated city, town, or village; or

††††† (b) Any designated residential or commercial area such as a subdivision, business or shopping center, or community development.

††††† (c) The right-of-way of a state highway, county road or railroad on property of a school, church, hospital, park or similar public place.

 

††††† Section 3. Telephonic Notice of Certain Incidents. (1) At the earliest practicable moment but no later than two (2) hours following discovery, each utility shall give notice to the commission in accordance with subsection (3) of this section of any incident that:

††††† (a) Is reported to USDOT pursuant to 49 C.F.R. Part 191, Federal Pipeline Safety Regulations.

††††† (b) Requires taking any segment of pipeline or mains out of service.

††††† (c) Results in gas ignition.

††††† (d) Causes estimated damage to property of the utility, or others, or both, of $25,000 or more.

††††† (e) Results in the loss of service to forty (40) or more customers for four (4) or more hours.

††††† (f) Causes the loss of a sizable amount of gas.

††††† (g) Received extensive news coverage, or in the judgment of the utility is significant, even though it does not meet the criteria of paragraphs (a) through (g) of this subsection.

††††† (2) A utility need not give notice of an incident that meets only criteria of subsections (1)(b) and (c) of this section if it occurred solely as a result of, or in connection with, planned or routine maintenance or construction.

††††† (3) Each notice required by subsection (1) of this section shall be made by telephone to the commission's chief engineer, gas pipeline safety branch, or designated staff; and shall include the following numbers:

††††† (a) Names of operator and person making report and their telephone numbers.

††††† (b) Location of incident.

††††† (c) Time of incident.

††††† (d) Number of fatalities.

††††† (e) All other significant facts known by the operator that are relevant to the cause of the incident or extent of damage.

††††† (4) If designated staff cannot be contacted, required information shall be reported by telephone to the nearest post of Kentucky State Police, followed by confirmation via electronic mail addressed to the commission.

††††† (5) Each notice made in accordance with this section shall be supplemented by a written report within thirty (30) days giving full details such as cause; extent of injuries or damage; and steps, if any, taken to prevent reoccurrence. If additional information is received by the utility subsequent to the initial report indicating a different cause, more serious injury, or more serious property damage than was initially reported, a supplemental telephone call shall be made to the commission's chief engineer, gas pipeline safety branch, as soon as practicable.

 

††††† Section 4. Addressee for Written Report. (1) Each written report required by this administrative regulation shall be transmitted to the Gas Pipeline Safety Branch, Public Service Commission, Post Office Box 615, Frankfort, Kentucky 40602.

††††† (2) Each written report required by Sections 3 and 12 of this administrative regulation shall be transmitted to the Gas Pipeline Safety Branch, Public Service Commission, Post Office Box 615, Frankfort, Kentucky 40602; and one (1) copy shall be transmitted to the Resources Manager, Office of Pipeline Safety, Research and Special Programs Administration, U.S. Department of Transportation, Room 8417, 400 Seventh Street, SW, Washington, D.C. 20590.

 

††††† Section 5. Distribution System: Annual Report. (1) Any utility operating a distribution system and submitting an annual report to USDOT pursuant to 49 C.F.R. Part 191 on USDOT Form DOT F-7100.1-1 shall concurrently file the annual report with the commission.

††††† (2) The annual report required by subsection (1) of this section need not be submitted with respect to petroleum gas systems which serve less than 100 customers from a single source.

 

††††† Section 6. Distribution Systems Reporting Transmission Pipelines; Transmission or Gathering Systems Reporting Distribution Pipelines. Any utility primarily engaged in gas distribution which also operates gas transmission or gathering pipelines and submits an incident report or annual report to USDOT pursuant to 49 C.F.R. Part 191.15 or 191.17 shall concurrently file a copy of the report with the commission. Any utility primarily engaged in gas transmission or gathering which also operates gas distribution pipelines and submits an incident report or annual report to USDOT pursuant to 49 C.F.R. Part 191.9 or 191.11 shall concurrently file a copy of the report with the commission.

 

††††† Section 7. Transmission and Gathering Systems: Incident Report. (1) A utility operating a transmission or gathering system and submitting USDOT Form RSPA F7100.2 pursuant to 49 C.F.R. 191.15 shall concurrently file a copy of the report with the commission.

††††† (2) When additional relevant information is obtained after a report is submitted in accordance with subsection (1) of this section, the utility shall make a supplemental report as soon as practicable with clear reference by date and subject to the original report.

 

††††† Section 8. Transmission and Gathering Systems: Annual Report. A utility operating a transmission or gathering system and submitting USDOT Form DOT- F-7100.2-1 pursuant to 49 C.F.R. Part 191.17 shall concurrently file a copy of the report with the commission.

 

††††† Section 9. Report Forms. Copies of prescribed report forms are available without charge upon request from the USDOT Office of Pipeline Safety or from the commission. Additional copies in this prescribed format may be reproduced and used if of same size and kind of paper.

 

††††† Section 10. Reporting Safety-Related Conditions. (1) Except as provided in subsection (2) of this section, each utility shall report in accordance with Section 11 of this administrative regulation the existence of any of the following safety-related conditions involving facilities in service:

††††† (a) In the case of a pipeline that operates at a hoop stress of twenty (20) percent or more of its specified minimum yield strength, general corrosion that has reduced wall thickness to less than that required for the maximum allowable operating pressure, and localized corrosion pitting to a degree where leakage might result.

††††† (b) Unintended movement or abnormal loading by environmental causes, such as an earthquake, landslide, or flood, that impairs the serviceability of a pipeline.

††††† (c)Any material defect or physical damage that impairs serviceability of a pipeline that operates at a hoop stress of twenty (20) percent or more of its specified minimum yield strength.

††††† (d) Any malfunction or operating error that causes the pressure of a pipeline to rise above its maximum allowable operating pressure plus the buildup allowed for operation of pressure limiting or control devices.

††††† (e) A leak in a pipeline that constitutes an emergency.

††††† (f) Any safety-related condition that could lead to an imminent hazard and causes (either directly or indirectly by remedial action of the operator), for purposes other than abandonment, a twenty (20) percent or more reduction in operating pressure or shutdown of operation of a pipeline.

††††† (2) A report is not required for any safety-related condition that:

††††† (a) Exists on a master meter system or a customer-owned service line;

††††† (b) Is an incident or results in an incident before the deadline for filing the safety-related condition report;

††††† (c) Exists on a pipeline that is more than 220 yards from any building intended for human occupancy or outdoor place of assembly, except that reports are required for conditions within the right-of-way of an active railroad, paved road, street, or highway; or

††††† (d) Is corrected by repair or replacement in accordance with applicable safety standards pursuant to 807 KAR 5:022 before the deadline for filing the safety-related condition report, except that reports are required for conditions under subsection (1)(a) of this section other than localized corrosion pitting on an effectively coated and cathodically protected pipeline.

 

††††† Section 11. Filing Safety-related Condition Reports. (1) Each report of a safety-related condition under Section 10 of this administrative regulation shall be filed (received by the commission) in writing within five (5) working days (not including Saturday, Sunday, or federal holidays) after the day a representative of the utility first determines that the condition exists, but not later than ten (10) working days after the day a representative of the utility discovers the condition. Separate conditions may be described in a single report if they are closely related. To file a report by telefacsimile (fax) dial 502-564-7279.

††††† (2) The report shall be headed "Safety-related Condition Report" and provide the following information:

††††† (a) Name and principal address of utility.

††††† (b) Date of report.

††††† (c) Name, job title, and business telephone number of person submitting the report.

††††† (d) Name, job title, and business telephone number of person who determined that the condition exists.

††††† (e) Date condition was discovered and date condition was first determined to exist.

††††† (f) Location of condition, with reference to the town, city or county, and as appropriate nearest street address, survey station number, milepost, landmark, or name of pipeline.

††††† (g) Description of the condition, including circumstances leading to its discovery, any significant effects of the condition on safety, and name of commodity transported or stored.

††††† (h) Corrective action taken (including reduction of pressure or shutdown) before the report is submitted and the planned follow-up future corrective action, including anticipated schedule for starting and concluding such action.]

 

††††† This is to certify that the Public Service Commission Chairman has reviewed and recommended this administrative regulation prior to its adoption, as required by KRS 278.040(3).

 

GWEN PINSON, Executive Director

MICHAEL J. SCHMITT, Chairman

††††† APPROVED BY AGENCY: November 28, 2017

††††† FILED WITH LRC: November 29, 2017 at 11 a.m.

††††† PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on January 24, 2018, at 2:00 p.m. Eastern Standard Time at the Kentucky Public Service Commission, 211 Sower Boulevard, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through January 31, 2018. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

††††† CONTACT PERSON: John Park, Staff Attorney, Kentucky Public Service Commission, 211 Sower Boulevard, Frankfort, Kentucky 40601, phone (502) 564-3940, fax (502) 564-7279, email john.park@ky.gov.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Jason Whisman, phone 502-564-3940, email Jason.Whisman@ky.gov., and John Park

††††† (1) Provide a brief summary of:

††††† (a) What this administrative regulation does: Sets safety standards for natural gas pipeline utilities.

††††† (b) The necessity of this administrative regulation: Ensure safe and reliable natural gas services for consumers.

††††† (c) How this administrative regulation conforms to the content of the authorizing statutes: 807 KAR 5:027 conforms to KRS 278.040 which requires the Public Service Commission to set regulations to ensure that utilities provide safe natural gas service to their customers.

††††† (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: Sets safety standards for natural gas pipeline utilities.

††††† (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

††††† (a) How the amendment will change this existing administrative regulation: It modifies the current state regulation to incorporate the federal natural gas safety regulations, 49 C.F.R. 191, 192 and 199, by reference.

††††† (b) The necessity of the amendment to this administrative regulation: To eliminate redundant and unnecessary state regulations that essentially mirror the federal standards that the state has the statutory authority to enforce.

††††† (c) How the amendment conforms to the content of the authorizing statutes: It ensures that utilities provide safe service to their customers.

††††† (d) How the amendment will assist in the effective administration of the statutes: Eliminates redundancy and provides clarification for the regulated entities.

††††† (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Approximately 215 regulated natural gas utility operators within Kentucky.

††††† (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

††††† (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: No new action will be required.

††††† (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): Zero Dollars; no fiscal impact.

††††† (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): One set of standards will eliminate redundancy and provide clarification to the utilities.

††††† (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

††††† (a) Initially: Zero Dollars; no fiscal impact.

††††† (b) On a continuing basis: Zero dollars; no fiscal impact.

††††† (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Annual assessments paid by regulated utilities, pursuant to KRS278.130, which are deposited into a special accounting structure of the General Fund per KRS 278.150(3) for the purposing of maintaining the commission.

††††† (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: No fiscal impact.

††††† (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: No new fees were established and no existing fees will be affected.

††††† (9) TIERING: Is tiering applied? Tiering is not applied as all utilities must conform with uniform standards of fair, safe, reasonable, and reliable utility services.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

††††† (1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? No impact other than reducing the managerial audit findings of regulated gas utility companies by the Kentucky Public Service Commission.

††††† (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 278.040

††††† (3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. Zero dollars; no fiscal impact.

††††† (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? Zero dollars; no fiscal impact.

††††† (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? Zero dollars; no fiscal impact.

††††† (c) How much will it cost to administer this program for the first year? Zero Dollars; no fiscal impact.

††††† (d) How much will it cost to administer this program for subsequent years? Zero dollars; no fiscal impact.

††††† Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

††††† Revenues (+/-):

††††† Expenditures (+/-):

††††† Other Explanation:

 

FEDERAL MANDATE ANALYSIS COMPARISON

 

††††† (1) Federal statute or regulation constituting the federal mandate. 49 C.F.R. Part 191, 49 C.F.R Part 192, 49 C.F.R. Part 199, 49 U.S.C. 1671

††††† (2) State compliance standards. Reduce state standards to mirror federal standards.

††††† (3) Minimum or uniform standards contained in the federal mandate. Uniform standards

††††† (4) Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? It will reduce stricter standards and become aligned with the federal requirements.

††††† (5) Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. Not applicable