16 Tex. Admin. Code § 8.209 - Distribution Facilities Replacements
(a)
Unless exempted by 49 CFR
§
192.1003(b), this
section applies to each operator of a gas distribution system that is subject
to the requirements of 49 CFR Part 192 . This section prescribes the minimum
requirements by which all operators will develop and implement a risk-based
program for the removal or replacement of distribution facilities, including
steel service lines, in such gas distribution systems. The risk-based program
will work in conjunction with the Distribution Integrity Management Program
(DIMP) using scheduled replacements to manage identified risks associated with
the integrity of distribution facilities.
(b) Each operator must make joints on
below-ground piping that meets the following requirements:
(1) Joints on steel pipe must be welded or
designed and installed to resist longitudinal pullout or thrust forces per
49 CFR §
192.273.
(2) Joints on plastic pipe must be fused or
designed and installed to resist longitudinal pullout or thrust forces per ASTM
D2513-Category 1.
(c)
Each operator must establish written procedures for implementing the
requirements of this section. Each operator must develop a risk-based program
to determine the relative risks and their associated consequences within each
pipeline system or segment. Each operator that determines that steel service
lines are the greatest risk must conduct the steel service line leak repair
analysis set forth in subsection (d) of this section and use the prescriptive
model in subsection (f) of this section for the replacement of those steel
service lines.
(d) In developing
its risk-based program, each operator must develop a risk analysis using data
collected under its DIMP and the data submitted on the PS-95 to determine the
risks associated with each of the operator's distribution systems and establish
its own risk ranking for pipeline segments and facilities to determine a
prioritized schedule for service line or facility replacement. The operator
must support the analysis with data, collected to validate system integrity,
that allow for the identification of segments or facilities within the system
that have the highest relative risk ranking or consequence in the event of a
failure. The operator must identify in its risk-based program the distribution
piping, by segment, that poses the greatest risk to the operation of the
system. In addition, each operator that determines that steel service lines are
the greatest risk must conduct a steel service line leak repair analysis to
determine the leak repair rate for steel service lines. The leak repair rate
for below-ground steel service lines is determined by dividing the annualized
number of below-ground leaks repaired on steel service lines (excluding
third-party leaks and leaks on steel service lines removed or replaced under
this section) by the total number of steel service lines as reported on PHMSA
Form F 7100.1-1, the Gas Distribution System Annual Report. Each operator that
determines that steel service lines are the greatest risk must conduct the
steel service line leak repair analysis using the most recent three calendar
years of data reported to the Commission on Form PS-95.
(e) Each operator must create a risk model
that will identify by segment those lines that pose the highest risk ranking or
consequence of failure. The determination of risk is based on the degree of
hazard associated with the risk factors assigned to the pipeline segments or
facilities within each of the operator's distribution systems. The priority of
service line or facility replacement is determined by classifying each pipeline
segment or facility based on its degree of hazard associated with each risk
factor. Each operator must establish its own risk ranking for pipeline segments
or facilities to determine the priority for necessary service line or facility
replacements. Each operator should include the following factors in developing
its risk analysis:
(1) pipe location,
including proximity to buildings or other structures and the type and use of
the buildings and proximity to areas of concentrations of people;
(2) composition and nature of the piping
system, including the age of the pipe, materials, type of facilities, operating
pressures, leak history records, prior leak grade repairs, and other
studies;
(3) corrosion history of
the pipeline, including known areas of significant corrosion or areas where
corrosive environments are known to exist, cased crossings of roads, highways,
railroads, or other similar locations where there is susceptibility to unique
corrosive conditions;
(4)
environmental factors that affect gas migration, including conditions that
could increase the potential for leakage or cause leaking gas to migrate to an
area where it could create a hazard, such as extreme weather conditions or
events (significant amounts or extended periods of rainfall, extended periods
of drought, unusual or prolonged freezing weather, hurricanes, etc.);
particular soil conditions; unstable soil; or areas subject to earth movement,
subsidence, or extensive growth of tree roots around pipeline facilities that
can exert substantial longitudinal force on the pipe and nearby joints;
and
(5) any other condition known
to the operator that has significant potential to initiate a leak or to permit
leaking gas to migrate to an area where it could result in a hazard, including
construction activity near the pipeline, wall-to-wall pavement, trenchless
excavation activities (e.g., boring), blasting, large earth-moving equipment,
heavy traffic, increase in operating pressure, and other similar activities or
conditions.
(f) This
subsection applies to operators that determine under subsection (c) of this
section that steel service lines are the greatest risk. Based on the results of
the steel service line leak repair analysis under subsection (d) of this
section, each operator must categorize each segment and complete the removal
and replacement of steel service lines by segment according to the risk ranking
established pursuant to subsection (e) of this section as follows:
(1) a segment with an annualized steel
service line leak rate of 5% or greater but less than 7.5% is a Priority 1
segment and an operator must remove or replace no less than 10% of the original
inventory per year; and
(2) a
segment with an annualized steel service line leak rate of less than 5% is a
Priority 2 segment. An operator is not required to remove or replace any
Priority 2 segments; however, upon discovery of a leak on a Priority 2 segment,
the operator must remove or replace rather than repair those lines except as
outlined in subsection (g) of this section.
(g) For those steel service lines that must
remain in service because of specific operational conditions or requirements,
each operator must determine if an integrity risk exists on the segment, and if
so, must replace the segment with steel as part of the integrity management
plan.
(h) All replacement programs
require a minimum annual replacement of 8% of the pipeline segments or
facilities posing the greatest risk in the system and identified for
replacement pursuant to this section. Each operator with steel service lines
subject to subsection (f) of this section must establish a schedule for the
replacement of steel service lines or other distribution facilities according
to the risk ranking established as part of the operator's risk-based program
and must submit the schedule to the Division for review and approval or
amendment under subsection (c) of this section.
(i) In conjunction with the filing of the
pipeline safety and regulatory program fee pursuant to §
8.201 of this title (relating to
Pipeline Safety and Regulatory Program Fees) and no later than March 15 of each
year, each operator must file with the Division:
(1) by System ID, a list of the steel service
line or other distribution facilities replaced during the prior calendar year;
and
(2) the operator's proposed
work plan for removal or replacement for the current calendar year, the
implementation of which is subject to review and amendment by the Division.
Each operator must notify the Division of any revisions to the proposed work
plan and, if requested, provide justification for such revision. Within 45 days
after receipt of an operator's proposed revisions to its risk-based plan and
work plan, the Division will notify the operator either of the acceptance of
the risk-based program and work plan or of the necessary modifications to the
risk-based program and work plan.
(j) Each operator of a gas distribution
system that is subject to the requirements of §
7.310 of this title (relating to
System of Accounts) may use the provisions of this subsection to account for
the investment and expense incurred by the operator to comply with the
requirements of this section.
(1) The operator
may:
(A) establish one or more designated
regulatory asset accounts in which to record any expenses incurred by the
operator in connection with acquisition, installation, or operation (including
related depreciation) of facilities that are subject to the requirements of
this section;
(B) record in one or
more designated plant accounts capital costs incurred by the operator for the
installation of facilities that are subject to the requirements of this
section;
(C) record interest on the
balance in the designated distribution facility replacement accounts using a
monthly interest rate equal to one-twelfth of the pretax weighted average cost
of capital last approved for the utility by the Commission;
(D) reduce balances in the designated
distribution facility replacement accounts by the amounts that are included in
and recovered though rates established in a subsequent Statement of Intent
filing or other rate adjustment mechanism; and
(E) use the presumption set forth in §
7.503 of this title (relating to
Evidentiary Treatment of Uncontroverted Books and Records of Gas Utilities)
with respect to investment and expense incurred by a gas utility for
distribution facilities replacement made pursuant to this section.
(2) This subsection does not
render any final determination of the reasonableness or necessity of any
investment or expense.
(k) A distribution gas pipeline facility
operator shall not install as a part of the operator's underground system a
cast iron, wrought iron, or bare steel pipeline. A distribution gas pipeline
facility operator shall replace any known cast iron pipelines installed as part
of the operator's underground system not later than December 31,
2021.
Notes
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