Section R14-5-202. Construction and Safety Standards for Gas, LNG, and Hazardous Liquid Pipeline Systems

A.      Applicability: This Section applies to the construction, recon- struction, repair, operation, and maintenance of each intrastate gas, LNG, or hazardous liquid pipeline system, pursuant to

A.R.S. § 40-441.

B.       Subject to the definitional changes in R14-5-201 and the mod- ifications noted in this Section, the Commission adopts, incor- porates, and approves as its own 49 CFR 40; 191; 192, except (I)(A)(2) and (3) of Appendix D to Part 192; 193; 195, except 195.1(b)(2), (3), and (4); and 199 (October 1, 2012), including no future editions or amendments, which are incorporated by reference; on file with the Office of Pipeline Safety; and pub- lished by and available from the U.S. Government Printing Office, 710 North Capital Street N.W., Washington DC 20401, and at http://www.gpo.gov/fdsys/. For purposes of 49 CFR 192, “Business District” means an area where the public con- gregate for economic, industrial, religious, educational, health, or recreational purposes and two or more buildings used for these purposes are located within 100 yards of each other.

C.      The above mentioned incorporated Parts of 49 CFR, except 49 CFR 191; 49 CFR 192.727(g)(1), 192.913(b)(1)(vii), 192.943(a), 192.949(a)-(b), and 192.951; 49 CFR 193 Subpart A; and 49 CFR 195 Subparts A and B, are revised as follows:

1.        Substitute “Commission” where “Administrator,” “Pipe- line and Hazardous Materials Administration,” “Office of Pipeline Safety,” or “OPS” appears; and

2.        Substitute “Office of Pipeline Safety, Arizona Corpora- tion Commission, at its office in Phoenix, Arizona” where the address for the “Information Resources Man- ager, Office of Pipeline Safety, Pipeline and Hazardous

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Materials  Safety  Administration,  U.S.  Department   of Transportation” appears.

D.      An operator of an intrastate pipeline shall file with the Com- mission an Operation and Maintenance Plan, including an emergency plan, at least 30 days before placing a pipeline sys- tem into operation. Any changes in an existing Operation and Maintenance Plan shall be filed within 30 days after the effec- tive date of the change.

E.       An operator of an intrastate pipeline transporting sour gas or sour oil shall comply with the following industry standards addressing facilities handling hydrogen sulfide (H2S), which are incorporated by reference, including no future editions or amendments:

1.        NACE Standard MR0175-99, Standard Materials Requirements-Sulfide Stress Cracking Resistant Metallic Material for Oilfield Equipment (1999 Revision), on file with the Office of Pipeline Safety and published by and available from the NACE International, 1440 S. Creek Dr., Houston, TX 77084-4906; and

2.        API RP55: Recommended Practice for Conducting Oil and Gas Producing and Gas Processing Plant Operations Involving Hydrogen Sulfide (2nd Edition 1995), on file with the Office of Pipeline Safety and published by and available from the American Petroleum Institute, 1200 L Street, NW, Washington, DC 20005-4070 and at http:// www.techstreet.com/.

F.       An operator of an intrastate pipeline transporting LNG, haz- ardous liquid, or gas shall not construct any part of a hazard- ous liquid, LNG, or gas pipeline system under a building. If a building encroaches over a pipeline system, the operator may require the property owner to remove the building from over the pipeline or to reimburse the operator the cost associated with relocating the pipeline system. The operator shall deter- mine, within 90 days after discovering the encroachment, whether the encroachment can be resolved within 180 days. If the operator determines that the encroachment cannot be resolved within 180 days, the operator shall, within 90 days of discovery, submit to the Office of Pipeline Safety a written plan to resolve the encroachment within a period longer than 180 days. The Office of Pipeline Safety may then extend the 180-day requirement in order to allow the property owner and the operator to implement the written plan to resolve the encroachment. If the operator does not submit a written plan, and the encroachment is not resolved within 180 days of dis- covery, the operator shall discontinue service to the pipeline system. This modifies 49 CFR 192.361 and 195.210.

G.      An operator of an intrastate distribution pipeline transporting gas shall not construct any part of a pipeline system less than 8 inches away from any other underground structure. If the 8- inch clearance cannot be maintained, a sleeve, casing, or shielding shall be used. This modifies 49 CFR 192.361.

H.      An operator of an intrastate pipeline transporting gas that has regulators, meters, or regulation meter sets that have been out of service for 36 months shall disconnect the pipeline from all sources and supplies of gas or hazardous liquids, purge the gas or hazardous liquids from the pipeline being disconnected, and cap all ends within six months after the 36 months have passed. This modifies 49 CFR 192.727.

I.        An operator of an intrastate pipeline shall not install or operate a gas regulator that might release gas within 3 feet of a source of ignition, an opening into a building, an air intake into a building, or any electrical source that is not intrinsically safe. The 3 foot clearance from a source of ignition shall be mea- sured from the vent or source of release (discharge port), not from the physical location of the meter set assembly. This sub- section does not apply to building permits issued and subdivi-

sions platted before October 1, 2000. If an encroachment into the required 3 foot clearance is caused by an action of the property owner, an occupant, or a provider after the effective date of this rule, the operator may require the property owner to resolve the encroachment or to reimburse the operator the cost associated with relocating the pipeline system. The opera- tor shall determine, within 90 days after discovering the encroachment, whether the encroachment can be resolved within 180 days. If the operator determines that the encroach- ment cannot be resolved within 180 days, the operator shall, within 90 days of discovery, submit to the Office of Pipeline Safety a written plan to resolve the encroachment within a period longer than 180 days. The Office of Pipeline Safety may then extend the 180-day requirement in order to allow the property owner and the operator to implement the written plan to resolve the encroachment. If the operator does not submit a written plan, and the encroachment is not resolved within 180 days of discovery, the operator shall discontinue service to the affected pipeline system. This modifies 49 CFR 192.357 and 192.361.

J.        An operator of an intrastate pipeline transporting LNG, gas, or a hazardous liquid shall use a cathodic protection system designed to protect the metallic pipeline in its entirety, in accordance with 49 CFR 192, Subpart I, October 1, 2010 (and no future amendments), incorporated by reference, and copies available from the Office of Pipeline Safety and the United States Government Printing Office, P.O. Box 371954, Pitts- burgh, PA 15250-7954, except (I)(A)(2) and (3) of Appendix D to Part 192 shall not be utilized. This modifies 49 CFR 192.463(a), 193.2629, and 195.571.

K.      An operator of an intrastate pipeline transporting hazardous liquid or gas shall not install Acrylonitrile-Butadiene-Styrene (ABS) or aluminum pipe in a pipeline system. This modifies 49 CFR 192.53 and 192.59.

L.       An operator of an intrastate pipeline transporting hazardous liquid or gas shall not install plastic pipe aboveground unless the plastic pipeline is protected by a metal casing, or equiva- lent, and the installation is approved by the Office of Pipeline Safety. An operator may use a temporary aboveground plastic pipeline bypass for up to 60 days, provided that the plastic pipeline is protected and is under the direct supervision of the operator at all times. This modifies 49 CFR 192.321 and 195.254.

M.     An operator of an intrastate pipeline transporting hazardous liquid or gas that constructs a pipeline system or any portion thereof using plastic pipe shall install, at a minimum, a 14- gauge coated or corrosion resistant, electrically conductive wire as a means of locating the pipe while it is underground. Tracer wire shall not be wrapped around the plastic pipe. Tracer wire may be taped, or attached to the pipe in another manner, provided that the adhesive or attachment is not detri- mental to the integrity of the pipe wall. This modifies 49 CFR

192.321 and 195.246.

N.      An operator of an intrastate pipeline transporting gas or haz- ardous liquid that constructs an underground pipeline system using plastic pipe shall bury the installed pipe with at least 6 inches of sandy type soil, free of any rock or debris, surround- ing the pipe for bedding and shading, unless the pipe is other- wise protected as approved by the Office of Pipeline Safety. Steel pipe shall be installed with at least 6 inches of sandy type soil, free of any debris or materials injurious to the pipe coat- ing, surrounding the pipe for bedding and shading, unless the pipe is otherwise protected as approved by the Office of Pipe- line Safety. This modifies 49 CFR 192.321, 192.361 and 195.246.

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O.      An operator of an intrastate pipeline transporting gas that con- structs an underground pipeline system using plastic pipe shall install the pipe with sufficient slack to allow for thermal expansion and contraction. In addition, all plastic pipe and fit- tings for use in an area with service temperatures above 100º F shall be tested and marked CD, CE, CF, or CG as required by ASTM D2513 (1995), including no future editions or amend- ments, which is incorporated by reference, on file with the Office of Pipeline Safety, and published by and available from ASTM International, 100 Barr Harbor Dr., P.O. Box C700, W. Conshohocken, PA 19428-2959 and through http:// www.astm.org. This modifies 49 CFR 192.63.

P.       An operator of an intrastate pipeline system transporting haz- ardous liquid or gas shall qualify welding procedures and shall ensure that welding of steel pipelines is performed in accor- dance with API Standard 1104, as incorporated by reference in 49 CFR 192.7, by welders qualified pursuant to API Standard 1104, except that welders qualified as delineated in 49 CFR 192, Appendix C may be used for low stress level pipe. This modifies 49 CFR 192.225, 192.227, 195.214, and 195.222.

Q.      An operator of an intrastate pipeline transporting gas shall sur- vey and grade all detected leakage according to the standards provided below, which modify 49 CFR 192.706 and 192.723:

1.        In the case of all gas except LPG, leakage surveys and grading shall be performed pursuant to the standards set by ASME Guide for Gas Transmission and Distribution Pipeline System, Guide Material, Appendix G-11-1983, including no future editions or amendments, which is incorporated by reference; on file with the Office of Pipe- line Safety; published by and available from ASME, Three Park Avenue, New York, NY 10016-5990; and modified by omitting 4.4(c) and by replacing “should” with “shall” each time it appears.

2.        In the case of LPG, leakage surveys and grading shall be performed pursuant to the standards set by ASME Guide for Gas Transmission and Distribution Pipeline System, Guide Material, Appendix G-11A-1983, including no future editions or amendments, which is incorporated by reference; on file with the Office of Pipeline Safety; pub- lished by and available from ASME, Three Park Avenue, New York, NY 10016-5990; and modified by replacing “should” with “shall” each time it appears.

3.        Leakage survey records shall identify in some manner each pipeline surveyed and shall be maintained to demon- strate that each required leakage survey has been con- ducted. This modifies 49 CFR 192.706 and 192.723.

R.      An operator of an intrastate transmission pipeline transporting gas shall conduct a leakage survey at least twice each calendar year, at an interval not exceeding 7 1/2 months, independent of class location, and shall repair each underground leak classi- fied as grade two or three either upon discovery or within one year after discovery. This modifies 49 CFR 192.706 and 192.711.

S.       An operator of an intrastate transmission pipeline transporting gas and operating at or above 20 percent of Specified Mini- mum Yield Strength shall ensure that nondestructive testing is completed for each weld performed on newly installed, replaced, or repaired pipeline or an appurtenance. The nonde- structive testing shall be completed before the newly welded area of the pipeline or appurtenance is used for service. This modifies 49 CFR 192.241.

T.       In the event of an unknown failure of a gas, LNG, or hazardous liquid pipeline, resulting in the operator’s being required to provide a telephonic or written report under R14-5-203 (B) or

(C) and in the operator’s removing a portion of the failed pipe- line, the following shall occur:

1.        The operator shall retain the portion of failed pipeline that was removed;

2.        The operator shall telephonically notify the Office of Pipeline Safety of the removal within two hours after the removal is completed, providing the following informa- tion.

a.         Identity of the failed pipeline,

b.        Description and location of the failure,

c.         Date and time of the removal,

d.        Length or quantity of the removed portion,

e.         Storage location of the removed portion, and

f.         Any additional information about the failure or the removal of the portion of the failed pipeline that is requested by the Office of Pipeline Safety;

3.        Within 48 hours after receiving telephonic notification pursuant to subsection (T)(2), the Office of Pipeline Safety shall:

a.         Determine, based on the information provided by the operator and the availability, adequacy, and reli- ability of any pipeline testing laboratory operated by the operator, whether it is necessary to have the removed portion of pipeline tested at an independent laboratory; and

b.        Telephonically notify the operator either:

i.         That the operator must have the removed por- tion of pipeline tested, in accordance with Office of Pipeline Safety directions, by an inde- pendent laboratory selected by the Office of Pipeline Safety as provided in subsection (T)(5), to determine the cause or causes of the failure; or

ii.        That the operator is not required to have the removed portion of pipeline tested by an inde- pendent laboratory and instead must conduct testing in its own pipeline testing laboratory, after which the operator may discard the removed portion of pipeline;

4.        After providing telephonic notice as provided in subsec- tion (T)(3)(b), the Office of Pipeline Safety shall confirm its notification in writing;

5.        If the Office of Pipeline Safety directs testing by an inde- pendent laboratory:

a.         The Office of Pipeline Safety shall:

i.         Determine, as provided in subsection (T)(6), the independent laboratory that will do the test- ing and the period of time within which the testing is to be completed;

ii.        Determine, based on the available information concerning the failure, the number and types of tests to be performed on the removed pipeline; and

iii.      Notify the operator of its determinations; and

b.        The operator shall:

i.         Contact the selected independent laboratory to arrange the scheduling of the required tests;

ii.        Notify the Office of Pipeline Safety, at least 20 days before the date of the tests, of the date and time scheduled for the laboratory tests;

iii.      At the request of the Office of Pipeline Safety, ensure that a representative of the Office of Pipeline Safety is permitted to observe any or all of the tests;

iv.       Ensure that the original test results are provided to the Office of Pipeline Safety by the indepen- dent laboratory within 30 days after the tests are completed; and

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v.        Pay for the independent laboratory testing; and

6.        In determining an independent laboratory to perform test- ing required under subsection (T), the Office of Pipeline Safety shall:

a.         Submit to at least three different independent labora- tories written requests for bids to conduct the test- ing;

b.        Consider each responding independent laboratory’s qualifications to perform the testing, as demon- strated by:

i.         Past experience in performing the required test or tests according to ASTM International stan- dards, and

ii.        Any recognition that a laboratory may have received from a national or international labo- ratory accreditation body, such as through a certification or accreditation process;

c.         Wait to select an independent laboratory until one of the following occurs:

i.         The Office of Pipeline Safety has received writ- ten bids from at least three different indepen- dent laboratories, or

ii.        Thirty days have passed since the date of the request for bids; and

d.        Select the independent laboratory that offers the optimum balance between cost and demonstrated ability to perform the required test or tests. This modifies 49 CFR 192.617, 193.2515, and 195.402.

U.      An operator shall ensure that all repair work performed on an existing intrastate pipeline transporting LNG, hazardous liq- uid, or gas complies with this Article.

V.      The Commission may waive compliance with any of the requirements of this Section upon a finding that such a waiver is in the interest of public and pipeline safety.

W.     To ensure compliance with the provisions of this Article, the Commission or an authorized representative thereof may enter the premises of an operator of an intrastate pipeline to inspect and investigate the property, books, papers, electronic files, business methods, and affairs that pertain to the pipeline sys- tem operation.

Historical Note

Adopted effective October 23, 1987 (Supp. 87-4).

Amended subsections (B), (I) and (J) effective February 3, 1989 (Supp. 89-1). Amended effective December 18,

1991 (Supp. 91-4). Amended effective July 25, 1994, under a court-ordered exemption as determined by the Arizona Corporation Commission (Supp. 94-3).

Amended effective August 30, 1996, under a court- ordered exemption as determined by the Arizona Corpo- ration Commission (Supp. 96-3). Amended effective Sep- tember 26, 1997, under a court-ordered exemption as determined by the Arizona Corporation Commission (Supp. 97-3). Amended by exempt rulemaking at 5

A.A.R. 3693, effective September 17, 1999 (Supp. 99-3). Amended by final rulemaking at 8 A.A.R. 2382, effective May 10, 2002 (Supp. 02-2). Amended by final rulemak-

ing at 9 A.A.R. 3496, effective September 15, 2003 (Supp. 03-3). Amended by final rulemaking at 11 A.A.R. 1253, effective March 3, 2005 (Supp. 05-1). Amended by

final rulemaking at 13 A.A.R. 4533, effective January 25,

2008 (Supp. 07-4). Amended by final rulemaking at 18

A.A.R. 126, effective December 28, 2011 (Supp. 11-4). Amended by final rulemaking at 20 A.A.R. 75, effective

December 16, 2013 (Supp. 13-4).

EMERGENCY RULEMAKING