70124 Federal Register / Vol. 85, No. 214 / Wednesday, November 4, 2020 / Proposed Rules

(1) Regulations that are prescribed by DEPARTMENT OF TRANSPORTATION • Instructions: Identify docket Federal law, such that the Department number PHMSA–2019–0199 at the exercises no discretion as to whether to Pipeline and Hazardous Materials beginning of your comments. If you promulgate the Regulation and as to Safety Administration submit your comments by mail, you what is prescribed by the Regulation. must submit two copies. If you wish to For Regulations described in this 49 CFR Parts 192 and 195 receive confirmation that PHMSA paragraph (g)(1) that are adopted after [Docket No. PHMSA–2019–0199] received your comments, you must the effective date of this section, the include a self-addressed stamped Federal law described in this paragraph Pipeline Safety: Midstream Facilities postcard. Internet users should submit (g)(1) shall be cited in the notice of Frequently Asked Questions comments at http:// www.regulations.gov. adoption. AGENCY: Pipeline and Hazardous (2) Regulations whose expiration Materials Safety Administration • Privacy Act: DOT may solicit pursuant to this section would violate (PHMSA), DOT. comments from the public regarding any other Federal law. ACTION: Notification and request for certain general notices. DOT posts these comments, without edit, including any (3) This section. comments. personal information the commenter (4) Regulations that involve a military SUMMARY: PHMSA is making available provides, to www.regulations.gov, as or foreign affairs function of the United for comment a set of draft frequently described in the system of records States. asked questions (FAQs) regarding notice (DOT/ALL–14 FDMS), which can (5) Regulations addressed solely to federal oversight of midstream be reviewed at www.dot.gov/privacy. internal agency management or processing facilities. Specifically, this • Confidential Business Information: personnel matters. guidance will delineate where PHMSA Confidential Business Information (CBI) and the Occupational Safety and Health is commercial or financial information (6) Regulations related solely to Administration (OSHA) will each Federal Government procurement. that is both customarily and actually perform inspection and enforcement treated as private by its owner. Under (7) Regulations that were issued activities for midstream processing the Freedom of Information Act (FOIA) jointly with other Federal agencies, or facilities where there is overlapping (5 U.S.C. 552), CBI is exempt from authority. The proposed guidance that were issued in consultation with public disclosure. If your comments consists of a set of seven FAQs that were other agencies because of a legal responsive to this document contain developed by the Midstream Processing requirement to consult with that other commercial or financial information agency. Working Group (Working Group) established by the Technical Pipeline that is customarily treated as private, (h) When the Department commences Safety Standards Committee, also that you actually treat as private, and the process of performing an assessment known as the Gas Pipeline Advisory that is relevant or responsive to this or review, it shall state on a Department- Committee (GPAC), and the Technical document, it is important that you managed website the Regulation(s) Hazardous Liquid Pipeline Safety clearly designate the submitted whose assessment or review it is Standards Committee, also known as the comments as CBI. Pursuant to 49 CFR commencing. The public will be able to Liquid Pipeline Advisory Committee 190.343, you may ask PHMSA to give submit comments regarding the (LPAC). confidential treatment to information Regulation(s) in the manner specified on you give to the agency by taking the DATES: this website. The public can also submit Persons interested in submitting following steps: (1) Mark each page of comments on the draft FAQs must do so comments in the manner specified on the original document submission by January 4, 2021. the website requesting that the containing CBI as ‘‘Confidential’’; (2) Department assess or review a ADDRESSES: You may submit comments, send PHMSA, along with the original Regulation. which should be identified by docket document, a second copy of the original number PHMSA–2019–0199, by any of document with the CBI deleted; and (3) (i) Any provision of this section held the following methods: explain why the information you are to be invalid or unenforceable by its • Federal eRulemaking Portal: submitting is CBI. Unless you are terms, or as applied to any person or Comments may be submitted to http:// notified otherwise, PHMSA will treat circumstance, shall be construed so as www.regulations.gov. Please follow the such marked submissions as to continue to give the maximum effect online instructions to submit comments. confidential under FOIA, and they will to the provision permitted by law, • Mail: Comments may be submitted not be placed in the public docket of unless such holding shall be one of utter by mailing them to the Dockets this notification. Submissions invalidity or unenforceability, in which Management System, U.S. Department containing CBI should be sent to Sayler event the provision shall be severable of Transportation, Dockets Operations, Palabrica at [email protected]. from this section and shall not affect the M–30, Ground Floor, Room W12–140, Any commentary PHMSA receives that remainder thereof or the application of 1200 New Jersey Avenue SE, is not specifically designated as CBI will the provision to persons not similarly Washington, DC 20590–0001. be placed in the public docket for this • Hand Delivery: Comments may be situated or to dissimilar circumstances. rulemaking. submitted by hand-delivering them to § 6.2 through 6.5 [Reserved]. 1200 New Jersey Avenue SE, West • Docket: The docket containing Building, Ground Floor, Room W12– background documents and received Dated: October 21, 2020. 140, Washington, DC 20590–0001. comments is available at http:// Alex M. Azar II, Comments may be delivered between 9 www.regulations.gov. Once on this site, Secretary, Department of Health and Human a.m. and 5 p.m. ET, Monday through please follow the online instructions for Services. Friday, except for Federal holidays. accessing the dockets. Alternatively, [FR Doc. 2020–23888 Filed 11–3–20; 4:15 pm] • Fax: Comments may be faxed to you may review these documents in BILLING CODE 4150–26–P 202–493–2251. person at the street address listed above.

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FOR FURTHER INFORMATION CONTACT: downstream of initial production but provide equivalent safety for midstream Sayler Palabrica, Transportation upstream of end users. processing facilities. However, the Specialist, at 202–366–0559. For the purposes of this guidance enforcement of both their regulatory document, a ‘‘midstream processing regimes to the same facilities created SUPPLEMENTARY INFORMATION: PHMSA facility’’ is a processing facility that unnecessary contradictions and provides written clarification regarding receives products being transported by confusion, potentially decreasing safety. the pipeline safety regulations found at PHMSA-jurisdictional pipelines and re- Therefore, in the interest of improving 49 CFR parts 190–199 in the form of injects those products for continued safety, ensuring effective government FAQs and other guidance materials. transportation by pipeline. In other oversight, and reducing regulatory PHMSA is requesting public comment words, a midstream processing facility redundancy, PHMSA and OSHA agreed on a set of draft FAQs that were is a processing facility with piping or to delineate where they each would developed by the Working Group that storage that is engaged in the perform regulatory oversight activities was established by the GPAC and LPAC. transportation of gas or hazardous for midstream processing facilities These draft FAQs are intended to clarify liquids by pipeline, and is therefore a based on the predominate use of the when each of PHMSA or OSHA intends pipeline facility subject to PHMSA facilities in question. As discussed to exercise its respective regulatory jurisdiction. The pipeline systems during the Working Group’s inspection and enforcement authority within or associated with midstream presentation to the GPAC and the LPAC over midstream processing facilities processing facilities may be subject to on August 26, 2015, in order to apply involved in pipeline transportation of regulation by one or more Federal the FAQs, an operator will be expected energy products. The intent of this agencies, depending on the facility’s to make records and documentation that guidance is to ensure that there is no purpose and configuration. PHMSA prove the predominate use of a facility confusion or unnecessary gaps or regulates the safety of transportation- available to PHMSA and OSHA for overlaps in Federal oversight of related pipeline systems associated with review and verification. See pages 71– midstream processing facilities. All midstream processing facilities in 49 75 of the transcript for the second day guidance, including these draft FAQs, is CFR parts 190–199, while OSHA of the meeting, available in the docket intended to be explanatory in nature. regulates safety within midstream for this document and at https:// FAQs are provided to help the regulated processing facilities using the Process primis.phmsa.dot.gov/meetings/ community understand how to comply Safety Management (PSM) regulations MtgHome.mtg?mtg=105&nocache=8221. with the regulations, but they are not (29 CFR 1910.119). Uncertainty These FAQs reflect agreement by substantive rules themselves and do not regarding where each of these respective PHMSA and OSHA to prioritize safety create legally enforceable rights, assign regulatory authorities begins and ends and regulatory clarity in regulatory duties, or impose new obligations not in connection with midstream oversight activities; however, nothing in otherwise contained in the existing processing facilities has led to confusion these FAQs changes the agencies’ regulations and standards. However, an among regulated entities and statutory authority with respect to operator who is able to demonstrate unnecessary duplication of regulatory midstream processing facilities. For compliance with the FAQs is likely to efforts by the Federal Government. example, PHMSA may still issue a be able to demonstrate compliance with To address these issues, the GPAC corrective action order under 49 U.S.C. the relevant regulations. If a different and LPAC established the Working 60112 or a safety order under 49 U.S.C. course of action is taken by an operator, Group in 2014. The Working Group 60117(l) if a safety issue is identified. the operator must be able to consisted of members representing The Working Group proposed seven demonstrate that its conduct is in PHMSA, OSHA, and the midstream draft FAQs to help clarify the accordance with the regulations. processing industry. The goal of the delineation of regulatory oversight Working Group was to better The draft FAQs are included in this activities between PHMSA and OSHA understand and improve the safety of document. Comments submitted in for the regulated industry and Federal midstream processing facilities by response to this document and other and State pipeline safety inspection and increasing clarity and eliminating supporting documents may be found in enforcement staff. PHMSA is soliciting unnecessary gaps and overlaps in Docket No. PHMSA–2019–0199 at public comments on these draft FAQs, Federal safety oversight. In particular, https://www.regulations.gov. Before which address the following issues: the Working Group was tasked with • Defining the terms ‘‘processing’’ finalizing the FAQs, PHMSA will evaluating the equivalency of PHMSA and ‘‘processing facility.’’ consider all substantive comments and OSHA midstream processing • Addressing oversight issues received on or before the comment facility safety requirements; identifying associated with bypass configurations, closing date. Comments received after means to delineate exercise of complex facilities with multiple the closing date will be considered to inspection and enforcement processing units, and gas storage the extent practicable. Once finalized, responsibilities (‘‘regulatory oversight systems. the FAQs will be posted on PHMSA’s activities’’) between the two agencies by • Identifying the upstream and public website at https:// clarifying the inlet and outlet downstream demarcation points www.phmsa.dot.gov/about-phmsa/ boundaries of midstream processing between pipeline transportation phmsa-faqs. facilities; and addressing the oversight facilities that will be subject to Background of midstream processing facilities with regulatory oversight activities under pass-through, bypass, and storage PHMSA’s pipeline safety regulations in Natural gas, crude oil, and associated configurations, including storage-related 49 CFR parts 190 through 199, and fluids typically go through a number of piping. processing facilities that will be subject processing steps before they can be The Working Group met on several to regulatory oversight activities by delivered to end users as refined occasions in 2014 and 2015. During that OSHA under its PSM requirements in petroleum products, natural gas liquids, time, the Working Group found that 29 CFR 1910.119. natural gas, and other products. Some of PHMSA’s pipeline safety regulations in Historically, PHMSA and OSHA have the facilities where these processes take 49 CFR parts 190–199 and OSHA’s PSM coordinated efforts to ensure that there place are midstream processing facilities requirements at 29 CFR 1910.119 are no gaps in oversight over any

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individual facility and this cooperation processing operation (see Q 1–A) and Q 5: What if a given section of piping will continue after this guidance is meets the criteria for applicability of the located on the grounds of a processing finalized. Occupational Safety and Health facility served by PHMSA-regulated The proposed definitions contained Administration(OSHA) process safety pipelines connects two processing units within these FAQs are limited in use for management regulations (29 CFR or is otherwise used for a processing applying these FAQs for the purpose of 1910.119). function? delineation between PHMSA and OSHA exercise of their respective regulatory Q 2: How does one delineate the If the piping is located downstream of oversight authorities. The proposed boundary between pipeline the first pressure control device entering FAQ definitions will not be codified in transportation and a processing facility? the facility and upstream of the last Parts 190 through 199, and are not pressure control device leaving the intended to be used for purposes other PHMSA policy indicates that, in facility, it would be subject to regulatory than to help the public interpret the deference to OSHA’s exercise of its oversight activities by OSHA under its application of PHMSA and OSHA’s authority, it will not conduct inspection process safety management regulations. regulations to a pipeline facility. and enforcement activities (‘‘regulatory PHMSA policy indicates that in oversight activities’’) under 49 CFR part deference to OSHA’s exercise of its Executive Order 13891 and DOT 192 and 195 for pipelines downstream authority, this section of piping would Guidance Procedures of the first pressure control device not be subject to PHMSA regulatory This draft guidance document has entering a processing facility, and oversight activities under 49 CFR part been reviewed and cleared by the upstream of the last pressure control 192 or 195. PHMSA Office of Chief Counsel in device leaving that processing facility, Q 6. How is underground storage and accordance with the Department’s except as described in provisions of associated piping located on the guidance procedures in 49 CFR 5.25– FAQ 4. grounds of a processing facility 5.51. It has been determined to be non- regulated? significant and, as defined in 49 CFR Q 3: How does PHMSA’s policy apply 5.37, not otherwise of importance to the to regulatory oversight of a pipeline Piping associated with underground Department’s interest. This draft entering a processing facility that storage used for the ‘‘purpose of guidance document will be posted on bypasses a pressure control device? managing processing facility inventory’’ PHMSA’s website in accordance with 49 will be subject to regulatory oversight CFR 5.31 and Executive Order 13891. A pipeline that predominantly (more activities by OSHA under its process than 50% of the time during the safety management regulations. Piping Draft Midstream Processing Facilities preceding calendar year) bypasses a FAQs associated with storage caverns used for pressure control device will be subject transportation will be subject to PHMSA This draft guidance document is to PHMSA regulatory oversight regulatory oversight activities under 49 intended to provide clarity to the public activities under 49 CFR part 192 or 195. CFR part 192 or 195. Additionally, regarding existing pipeline safety Further, if a pipeline bypasses a underground natural gas storage standards. The contents of this pressure control device that is facilities, as defined in § 192.3, must document do not have the force and permanently no longer in service, the comply with the applicable reporting effect of law and are not meant to bind pipeline will be subject to PHMSA requirements in 49 CFR part 191 and the public in any way, but pipeline regulatory oversight activities under 49 underground natural gas storage safety operators must comply with the CFR part 192 or 195. requirements in § 192.12. underlying safety standards. Q 4: How does PHMSA’s policy apply Q 7. How are pipelines connecting Q 1: Definitions to regulatory oversight of piping that storage or processing facilities regulated Q 1–A: What is Processing? bypasses processing downstream of the when traversing public or private lands For the purposes of this guidance first pressure control device? (outside the grounds of storage or processing facilities)? document, ‘‘processing’’ is defined as Piping that is downstream of the first the treatment of products including, but pressure control device that is not Pipelines exiting a pressure control not limited to dehydration, removal of predominately (more than 50% of the device of storage or processing facilities contaminants by separation or filtration, time during the previous calendar year) and traversing public or private lands blending with other products, and used to bypass processing will be outside the grounds of storage or heating or cooling units that separate or subject to regulatory oversight activities processing facilities will be subject to purify products and remove by OSHA under its’s process safety PHMSA regulatory oversight activities condensates by distillation. under 49 CFR part 192 or 195. These FAQs do not cover facilities management regulations. Piping that is used for the chemical conversion of downstream of the first pressure control Issued in Washington, DC, on September 1, device that is predominantly (more than 2020, under authority delegated in 49 CFR crude oil into refined petroleum 1.97. products (i.e. refining facilities). 50% of the time during the previous calendar year) used to bypass processing Alan K. Mayberry, Q 1–B: What is a Processing Facility? will be subject to PHMSA regulatory Associate Administrator for Pipeline Safety. A ‘‘processing facility’’ comprises one oversight activities under 49 CFR part [FR Doc. 2020–24011 Filed 11–3–20; 8:45 am] or more individual units that perform a 192 or 195. BILLING CODE 4910–60–P

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