Pipeline Safety: Grant of Waiver; Duke Energy Gas Transmission Company, 13670-13673 [E6-3833]
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Federal Register / Vol. 71, No. 51 / Thursday, March 16, 2006 / Notices
However, we continue to show overall
improvement compared to the same
period before the schedule adjustments.
wwhite on PROD1PC61 with NOTICES
Order To Show Cause
The FAA has issued a notice of
proposed rulemaking to address
appropriate limitations on scheduled
operations at O’Hare. The comment
period for the proposed rule closed on
May 24, and the FAA and the Office of
the Secretary of Transportation are
completing the rulemaking process.
However, the FAA cannot implement a
final rule sufficiently in advance of the
August 2004 order’s current expiration
date.
To prevent a recurrence of
overscheduling at O’Hare during the
interim between the expiration of the
August 2004 order on April 1, 2006, and
the expected effective date of the rule,
the FAA tentatively intends to extend
the August 2004 order. The limits on
arrivals and the allocation of arrival
authority embodied in the August 2004
order reflect the FAA’s agreements with
U.S. and Canadian air carriers. As a
result, maintaining the order through
the summer scheduling season
constitutes a reasonable approach to
preventing unacceptable congestion and
delays at O’Hare. In addition, we find
that it is reasonable to match this
proposed extension of the August 2004
order with the scheduling cycle for
summer 2006. The August 2004 order,
as extended, would expire on October
28, 2006.
Independence Air, which was
assigned ten arrivals in the August 2004
order, ceased all operations at O’Hare on
January 5, 2006. The August 2004 order
does not include a mechanism to
reallocate such unused capacity;
however, it does not appear that the
arrival authority assigned to
Independence Air is excess capacity.
The principal premise for the August
2004 order was the FAA’s determination
that O’Hare at present can accommodate
88 scheduled arrivals per hour in
average meteorological conditions
without triggering intolerable
congestion-related delays. In negotiating
the schedule adjustments among
individual air carriers for the August
2004 order, however, several peak
afternoon and evening hours received
scheduled arrivals that exceed the
agency’s preferred limit of 88 scheduled
arrivals per hour. Accordingly, the
unused arrival times assigned to
Independence Air under the order
would offset the hours that were
scheduled above the preferred limit, and
we tentatively conclude that it is
operationally beneficial not to reallocate
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the arrival times formerly used by
Independence Air at this time.
Accordingly, the FAA directs all
interested persons to show cause why
the FAA should not make final its
tentative findings and tentative decision
to extend the August 2004 order through
October 28, 2006, by filing their written
views in Docket No. FAA–2004–16944
on or before March 22, 2006. The FAA
is not soliciting views on the issues
separately under consideration in the
proposed rulemaking. Therefore, any
submissions to the current docket
should be limited to the issue of
extending the August 2004 order.
Issued in Washington, DC, on March 13,
2006.
Rebecca Byers MacPherson,
Assistant Chief Counsel for Regulation.
[FR Doc. 06–2595 Filed 3–14–06; 11:16 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–04–18858; Notice 2]
Pipeline Safety: Grant of Waiver; Duke
Energy Gas Transmission Company
Pipeline and Hazardous
Materials Safety Administration
(PHMSA), Department of Transportation
(DOT).
ACTION: Notice; Grant of Waiver.
AGENCY:
SUMMARY: Duke Energy Gas
Transmission Company (DEGT)
petitioned the Pipeline and Hazardous
Materials Safety Administration
(PHMSA) for a waiver of compliance
with 49 CFR 192.611, which requires
natural gas pipeline operators to
confirm or revise the maximum
allowable operating pressure of a
pipeline after a change in class location.
DEGT requested the waiver for certain
segments of its natural gas pipeline
located in Tennessee and Kentucky that
have changed, and for segments that
may change from Class 1 to Class 2 in
the future. Under the pipeline safety
regulations, class location indicates the
population density near a pipeline. As
the population along a pipeline
increases, the class location increases.
DEGT proposed to conduct a set of
alternative risk control activities, in lieu
of pipe replacement or pressure
reduction, on all the segments requested
in the waiver.
SUPPLEMENTARY INFORMATION:
Background
In accordance with 49 U.S.C. 60126,
PHMSA established the Risk
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Management Demonstration Program
(RMDP) in partnership with operators of
natural gas and hazardous liquid
pipeline facilities. The RMDP
determines how risk management
principles can be used to compliment
and improve the existing Federal
pipeline safety regulatory process.
Under the RMDP, pipeline operators
proposed risk management projects to
demonstrate how a structured and
formalized risk management process
could enable a company to customize its
safety program to allocate resources for
its pipeline’s particular risks, which
would lead to an enhanced level of
safety and environmental protection.
DEGT and 11 other pipeline companies
were selected as potential candidates for
RMDP projects.1 In evaluating DEGT as
a RMDP candidate, PHMSA and DEGT
engaged in a consultation process in
which DEGT’s safety practices and
pipeline risk management program were
scrutinized. During this consultation
process, DEGT identified 21 sites where
the class location had changed from
Class 1 to Class 2 along the pipeline
route of 2 compressor station
discharges—1 located in Tennessee and
the other in Kentucky. These segments
include DEGT’s 3 parallel natural gas
pipelines, Lines 10, 15, and 25, which
are part of its Texas Eastern Pipeline
System.
While awaiting approval of its risk
demonstration project, on October 5,
2000, DEGT requested a waiver of
compliance from 49 CFR 192.611, for
the 15 pipe segments located in
Tennessee that had changed from Class
1 to Class 2. The Federal pipeline safety
regulations at § 192.609 require a gas
pipeline operator to complete a class
location change study whenever they
believe an increase in population
density may have caused a change in
class location as defined in § 192.5. If a
new class location is confirmed, the
operator is required to either reduce
pressure or replace the pipe in
compliance with § 192.611.
Section 192.5(a)(1) defines a ‘‘class
location unit’’ as an onshore area
extending 220 yards (200 meters) on
either side of the centerline of any
continuous one mile length of pipeline.
The class location for any unit is
determined according to the following
criteria in § 192.5(b):
Class 1—an offshore area or 10 or
fewer buildings intended for human
occupancy;
1 ‘‘Candidates for the Pipeline Risk Management
Demonstration Program’’ (62 FR 143; July 25, 1997);
‘‘Pipeline Safety: Remaining Candidates for the
Pipeline Risk Management Demonstration
Program’’ (62 FR 197; October 10, 1997).
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Class 2—more than 10 but less than
46 buildings intended for human
occupancy;
Class 3—46 or more buildings
intended for human occupancy, or areas
where a pipeline lies within 100 yards
(91 meters) of either a building or a
small, well-defined outside area (such
as a playground, recreation area,
outdoor theater, or other place of public
assembly) that is occupied by 20 or
more persons on at least 5 days a week
for 10 weeks in any 12-month period;
Class 4—buildings with four or more
stories above ground are prevalent (e.g,
large office buildings).
Pipeline safety regulations impose
more stringent design and operation
requirements as the class location
increases. When a class location
changes to a higher class (e.g., from
Class 1 to Class 2), § 192.611 requires
the operator to reduce the pressure on
the pipeline to provide an additional
margin of safety. The operator may be
able to avoid the pressure reduction if
a pressure test on the pipe confirms that
the prescribed safety margin exists. If a
previous pressure test has not confirmed
the prescribed safety margin, the
operator must test the pipe to confirm
the margin, reduce the pressure, or
replace the pipe with new pipe. DEGT
proposed to conduct alternative risk
control activities in lieu of compliance
with § 192.611 and asserted that the
alternative risk control activities would
provide a level of safety equivalent to
that required by § 192.611.
On December 11, 2000, PHMSA
published a notice in the Federal
Register seeking comments on its intent
to grant DEGT the waiver (65 FR 77419);
no comments were received. On March
9, 2001, PHMSA granted and published
the waiver for the 15 pipe segments in
Tennessee (66 FR 14256).
On June 1, 2004, DEGT submitted a
second petition for waiver of § 192.611.
DEGT requested the waiver apply to the
21 pipe segments located in Tennessee
and Kentucky that changed from Class
1 to Class 2 and to segments that may
change from Class 1 to Class 2 in the
future. These were the segments
initially identified for DEGT’s Risk
Demonstration project, including the 15
segments on which PHMSA had granted
the waiver in March 2001. DEGT also
requested the waiver apply to all
pipeline segments that may, in the
future, change from Class 1 to Class 2.
These pipeline segments are found at
DEGT’s Mt. Pleasant, Tennessee
DEGT’s Waiver Request
DEGT’s waiver request involves 3
parallel pipelines in its Texas Eastern
Pipeline System, Lines 10, 15, and 25:
(1) 3 line segments running downstream
of its Mt. Pleasant, Tennessee
compressor station discharge to its
Gladeville compressor station, each
approximately 63.6 miles; and (2) 3 line
segments running downstream of its
Owingsville, Kentucky compressor
station discharge to its Wheelersburg
compressor station, each approximately
60.5 miles (collectively, the ‘‘waiver
sites’’).
Within the waiver sites are 21 pipe
segments (identified in the following
table) that have changed from Class 1 to
Class 2:
Line number
County & State
Mt. Pleasant Station Discharge:
Site #1 ......................................................
514.78
515.25
531.10
531.54
531.54
514.98
515.28
533.33
533.75
533.76
Fleming Co., Kentucky ...................................
Site #7 ......................................................
10
25
10
15
25
Williamson Co., Tennessee ...........................
Owingsville Station Discharge:
Site #6 ......................................................
227.35
227.50
227.50
229.07
229.21
229.22
239.19
239.34
239.36
241.72
247.88
248.04
248.03
265.31
265.49
265.48
Maury Co., Tennessee ...................................
Maury Co., Tennessee ...................................
Site #5 ......................................................
226.88
226.90
227.05
228.49
228.65
228.63
238.01
238.17
238.17
241.69
247.79
247.94
247.94
264.03
264.19
264.24
Maury Co., Tennessee ...................................
Site #3A ...................................................
Site #4 ......................................................
10
15
25
10
15
25
10
15
25
25
10
15
25
10
15
25
Maury Co., Tennessee ...................................
Site #3 ......................................................
Begin milepost
Maury Co., Tennessee ...................................
Site #2 ......................................................
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compressor station discharge, Gladeville
compressor station, and the pipeline
segments between its Owingsville,
Kentucky compressor station discharge
and Wheelersburg compressor station.
On August 16, 2004, PHMSA
published a notice in the Federal
Register requesting public comments on
DEGT’s June 1, 2004 request for waiver
(69 FR 50438); PHMSA did not receive
any comments.
Lewis Co., Kentucky ......................................
DEGT requested that the waiver
granted on March 9, 2001 for the 15
segments be extended to include the 6
segments in Kentucky that have
changed from Class 1 to Class 2. This
request would include the segments
within both the Mt. Pleasant compressor
station discharge and the Owingsville
compressor station discharge that may
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change from Class 1 to Class 2 in the
future.
DEGT has implemented the
alternative risk control activities that
were outlined in the waiver issued on
March 9, 2001. DEGT noted that it has
also implemented the following risk
control activities on the above identified
15 segments in Tennessee and the six
segments in Kentucky:
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End milepost
• Conducted internal inspections on
the entire length of the waiver segments
using geometry and magnetic flux
leakage in-line inspection tools. These
tools were used to identify indications
of wall loss (e.g., corrosion), as well as
dents and gouges from initial
construction damage or damage from
third party excavators working along the
pipeline right-of-way. The internal
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Federal Register / Vol. 71, No. 51 / Thursday, March 16, 2006 / Notices
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inspection included Lines 10, 15, and
25 in the Mt. Pleasant compressor
station discharge covering
approximately 190 miles of pipe, and
Lines 10, 15, and 25 in the Owingsville
compressor station discharge covering
approximately 185 miles of pipe. The
results of the inspection were provided
to PHMSA’s Southern Region.
• Repaired indications of corrosion,
existing construction damage, and
existing outside force damage identified
by the internal inspection tools using
conservative investigation and repair
criteria.
• Hydrostatically tested portions of
Line 10 that previously had not been
tested to 100 percent of the specified
minimum yield strength. This includes
2 sites in Tennessee (2.5 miles
northwest of Rally Hill in Maury County
and 3.5 miles east-northeast of
Arrington in Williamson County) and 1
site in Kentucky (4.4 miles southeast of
Kinniconick in Lewis County). The
results of the inspection were provided
to PHMSA’s Southern Region.
• Performed enhanced third-party
damage prevention activities. This
included installation, for a one-year trial
period, of a TransWave monitoring
system on the full length of pipeline
within the Mt. Pleasant discharge (63.6
miles on each line). The TransWave
system was used to monitor the change
in waveform of small currents that may
be caused by disturbances created by
excavation or other third-party
activities. The TransWave system was
employed to determine its reliability
and usefulness at detecting third-party
encroachments (construction,
excavation, etc.) in the pipeline right-ofway. At the conclusion of the one-year
trial period, DEGT submitted the final
test results to PHMSA’s Southern
Region.
PHMSA has determined that these
activities provide an equivalent level of
protection and safety as that provided
by 49 CFR § 192.611.
Grant of Waiver
In light of the aforementioned,
PHMSA finds that granting DEGT a
waiver from complying with 49 CFR
192.611 for the entire 21 pipeline
segments located along certain segments
of its natural gas pipeline in Tennessee
and Kentucky that have changed from
Class 1 to Class 2 and for those segments
that may change from Class 1 to Class
2 in the future, is not inconsistent with
pipeline safety regulations. The
alternative activities DEGT conducted
on the 21 segments where a class
location change occurred provides an
equivalent level of safety and protection
to that provided by the regulations at 49
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15:48 Mar 15, 2006
Jkt 208001
CFR 192.611. The actions required by
this waiver for future class location sites
will also provide equivalent safety and
protection. The grant of this waiver will
conclude all PHMSA action on DEGT’s
projects under the RMDP.
Under 49 CFR 192.611, PHMSA
grants DEGT’s request for a waiver for
the 21 segments on Lines 10, 15, and 25
within its Mt. Pleasant, Tennessee
compressor station discharge to its
Gladeville compressor station discharge
and within its Owingsville, Kentucky
compressor station discharge to its
Wheelersburg compressor station
discharge that has changed from Class 1
to Class 2. This waiver supersedes the
waiver granted on March 9, 2001.
PHMSA further grants DEGT’s request
for waiver of the requirements of 49 CFR
192.611 for the segments on Lines 10,
15, and 25 within its Mt. Pleasant,
Tennessee compressor station discharge
to its Gladeville compressor station
discharge and within its Owingsville,
Kentucky compressor station discharge
to its Wheelersburg compressor station
discharge that may change from Class 1
to Class 2 in the future.
This waiver may change certain line
segments from Class 1 to Class 2. This
will be contingent upon DEGT
providing information and notification
to PHMSA, and PHMSA not objecting to
including the line segments. DEGT will
not be allowed to apply the waiver to
any site that PHMSA objects to.
Should DEGT fail to comply with any
terms of the waiver, or should PHMSA
determine that the terms of this waiver
are no longer appropriate or that the
waiver is inconsistent with pipeline
safety, PHMSA may revoke this waiver
and require DEGT to comply with the
regulatory requirements of 49 CFR
192.611 and any other applicable
regulations.
This waiver is granted on the
condition that DEGT complies with the
following requirements:
1. DEGT must meet the technical
criteria of the PHMSA Class Change
Waiver Protocol or other criteria for
class location waivers that PHMSA may
adopt for any future class change sites
within the waiver segments that change
from Class 1 to Class 2.
2. DEGT must provide prior notice to
PHMSA’s Southern Region of its intent
to rely on this waiver, rather than
replace pipe, in any future class change
sites along the waiver segments so that
PHMSA can independently verify that
the criteria have been met. This notice
must include a schedule of any remedial
measures to be performed in future
waiver sites. PHMSA may request
additional information or clarification
before allowing DEGT to apply the
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Fmt 4703
Sfmt 4703
waiver to any future site. DEGT may
proceed with the waiver on the future
site unless PHMSA objects.
3. DEGT must conduct additional
public information activities in the
populated areas along all waiver
segments. This should include
providing information to local
emergency response personnel/agencies
about the operation of the pipeline, the
possibility of accidents, and actions that
must be taken in the event of an
accident on the pipeline.
4. DEGT must conduct future
inspections of the waiver segments and
remediate any defects identified in the
waiver segments in accordance with
subpart O of 49 CFR part 192.
5. Subsequent in-line inspections for
the waiver sites must be scheduled in
accordance with 49 CFR part 192,
subpart O.
6. The waiver sites must be in
compliance with American Society of
Mechanical Engineer’s standard B31.8S
criteria for stress corrosion cracking site
identification and site investigation/
testing.
7. DEGT must provide the PHMSA’s
Southern Region with sufficient
advance notice to enable PHMSA staff
to attend and participate in all
significant risk assessment activities
involving the waiver segments.
8. Within the three months following
approval of this waiver and annually
thereafter, DEGT is required to report
the following information to PHMSA’s
Southern Region:
• The economic benefit to the
company. This should address both the
costs avoided from not replacing the
pipe, and the added costs of the
inspection program (required for the
initial report only).
• In the first annual report, fully
describe how the public benefits from
energy availability. Should address the
benefits of avoided disruptions as a
consequence of pipe replacement and
the benefits of maintaining system
capacity. Subsequent reports must
indicate any changes to this initial
assessment.
• The results of any in-line
inspections or direct assessments
performed during the previous year
within the inspection area containing
the waiver location(s).
• Any new integrity threats identified
during the previous year within the
inspection area containing the waiver
location(s).
• Any encroachment of the
inspection area including the waiver
location(s) and new residences (by
number) or areas of public congregation.
• Any incidents (both reportable and
non reportable) that occurred during the
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Federal Register / Vol. 71, No. 51 / Thursday, March 16, 2006 / Notices
previous year associated with the
inspection area containing the waiver
location(s).
• Any leaks on the pipeline (both
reportable and non reportable) that
occurred during the previous year in the
inspection area containing the waiver
location(s).
• All repairs on the pipeline made
during the previous year in the
inspection area containing the waiver
location(s).
• On-going damage prevention
initiatives on the pipeline in the
inspection area containing the waiver
location(s) and a discussion on their
success.
• Any mergers, acquisitions, transfers
of assets, or other events affecting the
regulatory responsibility of the company
operating the pipeline to which the
waiver applies.
Authority: 49 U.S.C. 60118(c); 49 CFR 1.53.
Issued in Washington, DC, on March 13,
2006.
Joy Kadnar,
Director for Engineering and Engineering
Support.
[FR Doc. E6–3833 Filed 3–15–06; 8:45 am]
BILLING CODE 4910–60–P
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. AB–33 (Sub-No. 239X)]
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Union Pacific Railroad Company—
Discontinuance Exemption—in
Oklahoma City, OK
Union Pacific Railroad Company (UP)
has filed a verified notice of exemption
under 49 CFR part 1152 subpart F—
Exempt Abandonments and
Discontinuances of Service to
discontinue service over a 0.42-mile line
of railroad between Stiles Avenue to the
point of connection with the BNSF
Railway Company (BNSF) line near
Second Street (the Old Rock Island
Main) in Oklahoma City, Oklahoma
County, OK.1 There are no mileposts on
the line. The line traverses United States
Postal Service Zip Code 73102.
UP has certified that: (1) No traffic has
moved over the line for at least 2 years;
(2) there is no overhead traffic on the
line; (3) no formal complaint filed by a
user of rail service on the line (or by a
state or local government entity acting
on behalf of such user) regarding
cessation of service over the line either
is pending with the Board or with any
U.S. District Court or has been decided
1 Apparently, BNSF holds trackage rights
authority over the line which will not be affected
by this exemption.
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15:48 Mar 15, 2006
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in favor of complainant within the 2year period; and (4) the requirements at
49 CFR 1105.12 (newspaper
publication) and 49 CFR 1152.50(d)(1)
(notice to governmental agencies) have
been met.
As a condition to this exemption, any
employee adversely affected by the
abandonment shall be protected under
Oregon Short Line R. Co.—
Abandonment—Goshen, 360 I.C.C.91
(1979). To address whether this
condition adequately protects affected
employees, a petition for partial
revocation under 49 U.S.C. 10502(d)
must be filed.
Provided no formal expression of
intent to file an offer of financial
assistance (OFA) has been received, this
exemption will be effective on April 15,
2006, unless stayed pending
reconsideration. Petitions to stay that do
not involve environmental issues and
formal expressions of intent to file an
OFA for continued rail service under 49
CFR 1152.27(c)(2),2 must be filed by
March 27, 2006.3 Petitions to reopen
must be filed by April 5, 2006, with the
Surface Transportation Board, 1925 K
Street, NW., Washington, DC 20423–
0001.
A copy of any petition filed with the
Board should be sent to UP’s
representative: Robert T. Opal, General
Commerce Counsel, Union Pacific
Railroad Company, 1400 Douglas St.,
STOP 1580, Omaha, NE 68179.
If the verified notice contains false or
misleading information, the exemption
is void ab initio.
Board decisions and notices are
available on our Web site at https://
www.stb.dot.gov.
Decided: March 10, 2006.
By the Board, David M. Konschnik,
Director, Office of Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E6–3832 Filed 3–15–06; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF THE TREASURY
Submission for OMB Review;
Comment Request
March 9, 2006.
The Department of Treasury has
submitted the following public
2 Each offer of financial assistance must be
accompanied by the filing fee, which currently is
set at $1,200. See 49 CFR 1002.2(f)(25).
3 Because this is a discontinuance proceeding and
not an abandonment, trail use/rail banking and
public use conditions are not appropriate. Likewise,
no environmental or historical documentation is
required here under 49 CFR 1105.6(c) and
1105.8(b), respectively.
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13673
information collection requirement(s) to
OMB for review and clearance under the
Paperwork Reduction Act of 1995,
Public Law 104–13. Copies of the
submission(s) may be obtained by
calling the Treasury Bureau Clearance
Officer listed. Comments regarding this
information collection should be
addressed to the OMB reviewer listed
and to the Treasury Department
Clearance Officer, Department of the
Treasury, Room 11000, 1750
Pennsylvania Avenue, NW.,
Washington, DC 20220.
DATES: Written comments should be
received on or before April 17, 2006 to
be assured of consideration.
Internal Revenue Service (IRS)
OMB Number: 1545–0202.
Type of Review: Extension.
Title: Form 5310, Application for
Determination for Terminating Plan;
Form 6088, Distributable Benefits from
Employee Pension Benefit Plans.
Form: IRS Form–5310 and 6088.
Description: Employees who have
qualified deferred compensation plans
can take an income tax deduction for
contributions to their plans. IRS uses
the data on Forms 5310 and 6088 to
determine whether a plan still qualifies
and whether there is any discrimination
in benefits.
Respondents: Business or other forprofit.
Estimated Total Burden Hours:
1,813,650 hours.
OMB Number: 1545–1120.
Type of Review: Extension.
Title: CO–69–87 and CO–68–87
(Final) Final Regulations Under
Sections 382 and 383 of the Internal
Revenue Code of 1986; Pre-change
Attributes; CO–18–90 (Final) Final
Regulations Under Section 382 of the
Internal Revenue Code of 1986;
Limitations on Corporate Net Operating
Loss Carryforwards.
Description: (CO–69–87 and CO–68–
87) these regulations require reporting
by a corporation after it undergoes an
‘‘ownership change’’ under sections 382
and 383. Corporations required to report
under these regulations include those
with capital loss carryovers and excess
credits. (CO–18–90) These regulations
provide for rules for the treatment of
options under IRC section 382 for
purposes of determining whether a
corporation undergoes an ownership
change. The regulation allows for
certain elections for corporations whose
stock is subject to options.
Respondents: Business or other forprofit.
Estimated Total Burden Hours:
220,575 hours.
OMB Number: 1545–1617.
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Agencies
[Federal Register Volume 71, Number 51 (Thursday, March 16, 2006)]
[Notices]
[Pages 13670-13673]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-3833]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
[Docket No. PHMSA-04-18858; Notice 2]
Pipeline Safety: Grant of Waiver; Duke Energy Gas Transmission
Company
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Department of Transportation (DOT).
ACTION: Notice; Grant of Waiver.
-----------------------------------------------------------------------
SUMMARY: Duke Energy Gas Transmission Company (DEGT) petitioned the
Pipeline and Hazardous Materials Safety Administration (PHMSA) for a
waiver of compliance with 49 CFR 192.611, which requires natural gas
pipeline operators to confirm or revise the maximum allowable operating
pressure of a pipeline after a change in class location. DEGT requested
the waiver for certain segments of its natural gas pipeline located in
Tennessee and Kentucky that have changed, and for segments that may
change from Class 1 to Class 2 in the future. Under the pipeline safety
regulations, class location indicates the population density near a
pipeline. As the population along a pipeline increases, the class
location increases. DEGT proposed to conduct a set of alternative risk
control activities, in lieu of pipe replacement or pressure reduction,
on all the segments requested in the waiver.
SUPPLEMENTARY INFORMATION:
Background
In accordance with 49 U.S.C. 60126, PHMSA established the Risk
Management Demonstration Program (RMDP) in partnership with operators
of natural gas and hazardous liquid pipeline facilities. The RMDP
determines how risk management principles can be used to compliment and
improve the existing Federal pipeline safety regulatory process. Under
the RMDP, pipeline operators proposed risk management projects to
demonstrate how a structured and formalized risk management process
could enable a company to customize its safety program to allocate
resources for its pipeline's particular risks, which would lead to an
enhanced level of safety and environmental protection. DEGT and 11
other pipeline companies were selected as potential candidates for RMDP
projects.\1\ In evaluating DEGT as a RMDP candidate, PHMSA and DEGT
engaged in a consultation process in which DEGT's safety practices and
pipeline risk management program were scrutinized. During this
consultation process, DEGT identified 21 sites where the class location
had changed from Class 1 to Class 2 along the pipeline route of 2
compressor station discharges--1 located in Tennessee and the other in
Kentucky. These segments include DEGT's 3 parallel natural gas
pipelines, Lines 10, 15, and 25, which are part of its Texas Eastern
Pipeline System.
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\1\ ``Candidates for the Pipeline Risk Management Demonstration
Program'' (62 FR 143; July 25, 1997); ``Pipeline Safety: Remaining
Candidates for the Pipeline Risk Management Demonstration Program''
(62 FR 197; October 10, 1997).
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While awaiting approval of its risk demonstration project, on
October 5, 2000, DEGT requested a waiver of compliance from 49 CFR
192.611, for the 15 pipe segments located in Tennessee that had changed
from Class 1 to Class 2. The Federal pipeline safety regulations at
Sec. 192.609 require a gas pipeline operator to complete a class
location change study whenever they believe an increase in population
density may have caused a change in class location as defined in Sec.
192.5. If a new class location is confirmed, the operator is required
to either reduce pressure or replace the pipe in compliance with Sec.
192.611.
Section 192.5(a)(1) defines a ``class location unit'' as an onshore
area extending 220 yards (200 meters) on either side of the centerline
of any continuous one mile length of pipeline. The class location for
any unit is determined according to the following criteria in Sec.
192.5(b):
Class 1--an offshore area or 10 or fewer buildings intended for
human occupancy;
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Class 2--more than 10 but less than 46 buildings intended for human
occupancy;
Class 3--46 or more buildings intended for human occupancy, or
areas where a pipeline lies within 100 yards (91 meters) of either a
building or a small, well-defined outside area (such as a playground,
recreation area, outdoor theater, or other place of public assembly)
that is occupied by 20 or more persons on at least 5 days a week for 10
weeks in any 12-month period;
Class 4--buildings with four or more stories above ground are
prevalent (e.g, large office buildings).
Pipeline safety regulations impose more stringent design and
operation requirements as the class location increases. When a class
location changes to a higher class (e.g., from Class 1 to Class 2),
Sec. 192.611 requires the operator to reduce the pressure on the
pipeline to provide an additional margin of safety. The operator may be
able to avoid the pressure reduction if a pressure test on the pipe
confirms that the prescribed safety margin exists. If a previous
pressure test has not confirmed the prescribed safety margin, the
operator must test the pipe to confirm the margin, reduce the pressure,
or replace the pipe with new pipe. DEGT proposed to conduct alternative
risk control activities in lieu of compliance with Sec. 192.611 and
asserted that the alternative risk control activities would provide a
level of safety equivalent to that required by Sec. 192.611.
On December 11, 2000, PHMSA published a notice in the Federal
Register seeking comments on its intent to grant DEGT the waiver (65 FR
77419); no comments were received. On March 9, 2001, PHMSA granted and
published the waiver for the 15 pipe segments in Tennessee (66 FR
14256).
On June 1, 2004, DEGT submitted a second petition for waiver of
Sec. 192.611. DEGT requested the waiver apply to the 21 pipe segments
located in Tennessee and Kentucky that changed from Class 1 to Class 2
and to segments that may change from Class 1 to Class 2 in the future.
These were the segments initially identified for DEGT's Risk
Demonstration project, including the 15 segments on which PHMSA had
granted the waiver in March 2001. DEGT also requested the waiver apply
to all pipeline segments that may, in the future, change from Class 1
to Class 2. These pipeline segments are found at DEGT's Mt. Pleasant,
Tennessee compressor station discharge, Gladeville compressor station,
and the pipeline segments between its Owingsville, Kentucky compressor
station discharge and Wheelersburg compressor station.
On August 16, 2004, PHMSA published a notice in the Federal
Register requesting public comments on DEGT's June 1, 2004 request for
waiver (69 FR 50438); PHMSA did not receive any comments.
DEGT's Waiver Request
DEGT's waiver request involves 3 parallel pipelines in its Texas
Eastern Pipeline System, Lines 10, 15, and 25: (1) 3 line segments
running downstream of its Mt. Pleasant, Tennessee compressor station
discharge to its Gladeville compressor station, each approximately 63.6
miles; and (2) 3 line segments running downstream of its Owingsville,
Kentucky compressor station discharge to its Wheelersburg compressor
station, each approximately 60.5 miles (collectively, the ``waiver
sites'').
Within the waiver sites are 21 pipe segments (identified in the
following table) that have changed from Class 1 to Class 2:
----------------------------------------------------------------------------------------------------------------
Begin
County & State Line number milepost End milepost
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Mt. Pleasant Station Discharge:
Site 1................ Maury Co., Tennessee....... 10 226.88 227.35
15 226.90 227.50
25 227.05 227.50
Site 2................ Maury Co., Tennessee....... 10 228.49 229.07
15 228.65 229.21
25 228.63 229.22
Site 3................ Maury Co., Tennessee....... 10 238.01 239.19
15 238.17 239.34
25 238.17 239.36
Site 3A............... Maury Co., Tennessee....... 25 241.69 241.72
Site 4................ Maury Co., Tennessee....... 10 247.79 247.88
15 247.94 248.04
25 247.94 248.03
Site 5................ Williamson Co., Tennessee.. 10 264.03 265.31
15 264.19 265.49
25 264.24 265.48
Owingsville Station Discharge:
Site 6................ Fleming Co., Kentucky...... 10 514.78 514.98
25 515.25 515.28
Site 7................ Lewis Co., Kentucky........ 10 531.10 533.33
15 531.54 533.75
25 531.54 533.76
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DEGT requested that the waiver granted on March 9, 2001 for the 15
segments be extended to include the 6 segments in Kentucky that have
changed from Class 1 to Class 2. This request would include the
segments within both the Mt. Pleasant compressor station discharge and
the Owingsville compressor station discharge that may change from Class
1 to Class 2 in the future.
DEGT has implemented the alternative risk control activities that
were outlined in the waiver issued on March 9, 2001. DEGT noted that it
has also implemented the following risk control activities on the above
identified 15 segments in Tennessee and the six segments in Kentucky:
Conducted internal inspections on the entire length of the
waiver segments using geometry and magnetic flux leakage in-line
inspection tools. These tools were used to identify indications of wall
loss (e.g., corrosion), as well as dents and gouges from initial
construction damage or damage from third party excavators working along
the pipeline right-of-way. The internal
[[Page 13672]]
inspection included Lines 10, 15, and 25 in the Mt. Pleasant compressor
station discharge covering approximately 190 miles of pipe, and Lines
10, 15, and 25 in the Owingsville compressor station discharge covering
approximately 185 miles of pipe. The results of the inspection were
provided to PHMSA's Southern Region.
Repaired indications of corrosion, existing construction
damage, and existing outside force damage identified by the internal
inspection tools using conservative investigation and repair criteria.
Hydrostatically tested portions of Line 10 that previously
had not been tested to 100 percent of the specified minimum yield
strength. This includes 2 sites in Tennessee (2.5 miles northwest of
Rally Hill in Maury County and 3.5 miles east-northeast of Arrington in
Williamson County) and 1 site in Kentucky (4.4 miles southeast of
Kinniconick in Lewis County). The results of the inspection were
provided to PHMSA's Southern Region.
Performed enhanced third-party damage prevention
activities. This included installation, for a one-year trial period, of
a TransWave monitoring system on the full length of pipeline within the
Mt. Pleasant discharge (63.6 miles on each line). The TransWave system
was used to monitor the change in waveform of small currents that may
be caused by disturbances created by excavation or other third-party
activities. The TransWave system was employed to determine its
reliability and usefulness at detecting third-party encroachments
(construction, excavation, etc.) in the pipeline right-of-way. At the
conclusion of the one-year trial period, DEGT submitted the final test
results to PHMSA's Southern Region.
PHMSA has determined that these activities provide an equivalent
level of protection and safety as that provided by 49 CFR Sec.
192.611.
Grant of Waiver
In light of the aforementioned, PHMSA finds that granting DEGT a
waiver from complying with 49 CFR 192.611 for the entire 21 pipeline
segments located along certain segments of its natural gas pipeline in
Tennessee and Kentucky that have changed from Class 1 to Class 2 and
for those segments that may change from Class 1 to Class 2 in the
future, is not inconsistent with pipeline safety regulations. The
alternative activities DEGT conducted on the 21 segments where a class
location change occurred provides an equivalent level of safety and
protection to that provided by the regulations at 49 CFR 192.611. The
actions required by this waiver for future class location sites will
also provide equivalent safety and protection. The grant of this waiver
will conclude all PHMSA action on DEGT's projects under the RMDP.
Under 49 CFR 192.611, PHMSA grants DEGT's request for a waiver for
the 21 segments on Lines 10, 15, and 25 within its Mt. Pleasant,
Tennessee compressor station discharge to its Gladeville compressor
station discharge and within its Owingsville, Kentucky compressor
station discharge to its Wheelersburg compressor station discharge that
has changed from Class 1 to Class 2. This waiver supersedes the waiver
granted on March 9, 2001.
PHMSA further grants DEGT's request for waiver of the requirements
of 49 CFR 192.611 for the segments on Lines 10, 15, and 25 within its
Mt. Pleasant, Tennessee compressor station discharge to its Gladeville
compressor station discharge and within its Owingsville, Kentucky
compressor station discharge to its Wheelersburg compressor station
discharge that may change from Class 1 to Class 2 in the future.
This waiver may change certain line segments from Class 1 to Class
2. This will be contingent upon DEGT providing information and
notification to PHMSA, and PHMSA not objecting to including the line
segments. DEGT will not be allowed to apply the waiver to any site that
PHMSA objects to.
Should DEGT fail to comply with any terms of the waiver, or should
PHMSA determine that the terms of this waiver are no longer appropriate
or that the waiver is inconsistent with pipeline safety, PHMSA may
revoke this waiver and require DEGT to comply with the regulatory
requirements of 49 CFR 192.611 and any other applicable regulations.
This waiver is granted on the condition that DEGT complies with the
following requirements:
1. DEGT must meet the technical criteria of the PHMSA Class Change
Waiver Protocol or other criteria for class location waivers that PHMSA
may adopt for any future class change sites within the waiver segments
that change from Class 1 to Class 2.
2. DEGT must provide prior notice to PHMSA's Southern Region of its
intent to rely on this waiver, rather than replace pipe, in any future
class change sites along the waiver segments so that PHMSA can
independently verify that the criteria have been met. This notice must
include a schedule of any remedial measures to be performed in future
waiver sites. PHMSA may request additional information or clarification
before allowing DEGT to apply the waiver to any future site. DEGT may
proceed with the waiver on the future site unless PHMSA objects.
3. DEGT must conduct additional public information activities in
the populated areas along all waiver segments. This should include
providing information to local emergency response personnel/agencies
about the operation of the pipeline, the possibility of accidents, and
actions that must be taken in the event of an accident on the pipeline.
4. DEGT must conduct future inspections of the waiver segments and
remediate any defects identified in the waiver segments in accordance
with subpart O of 49 CFR part 192.
5. Subsequent in-line inspections for the waiver sites must be
scheduled in accordance with 49 CFR part 192, subpart O.
6. The waiver sites must be in compliance with American Society of
Mechanical Engineer's standard B31.8S criteria for stress corrosion
cracking site identification and site investigation/testing.
7. DEGT must provide the PHMSA's Southern Region with sufficient
advance notice to enable PHMSA staff to attend and participate in all
significant risk assessment activities involving the waiver segments.
8. Within the three months following approval of this waiver and
annually thereafter, DEGT is required to report the following
information to PHMSA's Southern Region:
The economic benefit to the company. This should address
both the costs avoided from not replacing the pipe, and the added costs
of the inspection program (required for the initial report only).
In the first annual report, fully describe how the public
benefits from energy availability. Should address the benefits of
avoided disruptions as a consequence of pipe replacement and the
benefits of maintaining system capacity. Subsequent reports must
indicate any changes to this initial assessment.
The results of any in-line inspections or direct
assessments performed during the previous year within the inspection
area containing the waiver location(s).
Any new integrity threats identified during the previous
year within the inspection area containing the waiver location(s).
Any encroachment of the inspection area including the
waiver location(s) and new residences (by number) or areas of public
congregation.
Any incidents (both reportable and non reportable) that
occurred during the
[[Page 13673]]
previous year associated with the inspection area containing the waiver
location(s).
Any leaks on the pipeline (both reportable and non
reportable) that occurred during the previous year in the inspection
area containing the waiver location(s).
All repairs on the pipeline made during the previous year
in the inspection area containing the waiver location(s).
On-going damage prevention initiatives on the pipeline in
the inspection area containing the waiver location(s) and a discussion
on their success.
Any mergers, acquisitions, transfers of assets, or other
events affecting the regulatory responsibility of the company operating
the pipeline to which the waiver applies.
Authority: 49 U.S.C. 60118(c); 49 CFR 1.53.
Issued in Washington, DC, on March 13, 2006.
Joy Kadnar,
Director for Engineering and Engineering Support.
[FR Doc. E6-3833 Filed 3-15-06; 8:45 am]
BILLING CODE 4910-60-P