1 STATUTORY OR OTHER AUTHORITY: The Washington utilities and transportation commission takes this action under CR-101 Notice No. WSR 06-15-123, filed with the code reviser on July 19, 2006, and CR-102 Notice No. WSR 06-24-128, filed with the code reviser on December 6, 2006. The commission brings this proceeding pursuant to RCW 80.01.040, 81.01.010, 81.88.060.

     2 STATEMENT OF COMPLIANCE: This proceeding complies with the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 43.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).

     3 DATE OF ADOPTION: The commission adopts these rules on the date that this order is entered.

     4 CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: RCW 34.05.325(6) requires the commission to prepare and provide to commenters a concise explanatory statement about an adopted rule. The statement must identify the commission's reasons for adopting the rule, a description of the differences between the version of the proposed rules published in the register and the rules adopted (other than editing changes), a summary of the comments received regarding the proposed rule changes, and the commission's responses to the comments reflecting the commission's consideration of them.

     5 In this docket, to avoid unnecessary duplication, the commission designates the discussion in this order, including appendices, as its concise explanatory statement, supplemented where not inconsistent by the staff memoranda preceding the filing of the CR-102 proposal and the adoption hearing. Together, the documents provide a complete but concise explanation of the agency actions and its reasons for taking those actions.

     6 REFERENCE TO AFFECTED RULES: This order amends and adopts the following sections of the Washington Administrative Code: Adopt WAC 480-75-270 Damage prevention; and amend WAC 480-75-300 Leak detection, 480-75-450 Construction specifications, 480-75-630 Incident reporting, and 480-75-650 Annual reports.

     7 PREPROPOSAL STATEMENT OF INQUIRY AND ACTIONS THEREUNDER: The commission filed a preproposal statement of inquiry (CR-101) on July 19, 2006, at WSR 06-15-123.

     8 The statement advised interested persons that the commission was considering entering a rule making to address possible corrections and clarifications to selected sections of chapter 480-75 WAC, Hazardous liquid, gas, oil and petroleum pipeline companies--Safety, specifically rules governing hazardous liquid operators. In addition, the statement advised interested persons that the commission was considering a new rule to address compliance with the damage prevention requirements of chapter 19.22 RCW.

     9 The commission also informed persons of the inquiry into this matter by providing notice of the subject and the CR-101 to all persons on the commission's list of persons requesting such information pursuant to RCW 34.05.320(3), to all gas companies, to the commission's lists of persons interested in intrastate and interstate pipeline issues, pipeline safety, rule makings generally, rule makings related to gas companies, pipeline companies and pipeline safety, and to the commission's lists of regulatory attorneys. Pursuant to the notice, the commission requested comments on the rule making. Two companies, McChord Pipeline Company (McChord) and Puget Sound Energy, Inc. (PSE), filed comments notifying the commission of their interest in the rule making.

     10 NOTICE OF PROPOSED RULE MAKING: The commission filed a notice of proposed rule making (CR-102) on December 6, 2006, at WSR 06-24-128. The commission scheduled this matter for oral comment and adoption under Notice No. WSR 06-24-128 at 1:30 p.m. on February 7, 2007, in the Commission's Hearing Room, Second Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA. The notice provided interested persons the opportunity to submit written comments to the commission.

     11 WRITTEN COMMENTS: The commission received written comments from BP Pipelines N.A. (BP) and McChord. A summary of written comments and commission responses are presented below.

     12 RULE-MAKING HEARING: The commission considered the proposed rules for adoption at a rule-making hearing on February 7, 2007, before Chairman Mark H. Sidran, Commissioner Patrick J. Oshie, and Commissioner Philip B. Jones. No other interested person made oral comments.

     13 SUGGESTIONS FOR CHANGE THAT ARE ACCEPTED: The written comments suggested changes to the proposed rules. BP suggested that the commission modify the proposed language in WAC 480-75-450, which governs construction specifications. BP suggested the proposed rule be modified to exempt companies from the requirement to locate seams on the upper half of the pipe when constructing pipelines using boring or directional drilling techniques. The company asserted it would be nearly impossible to control the orientation of the pipe seams while using these construction techniques. BP also requested a change to proposed language in WAC 480-75-650, which governs annual reports. BP later withdrew its request. BP's suggestion for change to WAC 480-75-450 is appropriate and the proposed rule should be modified to reflect the suggested change.

     14 McChord suggested changes to the annual reporting requirement in proposed WAC 480-75-650(2). McChord asserted that the rule should require operators to continue to complete a standardized form provided annually by the commission that includes all of the information listed in the rule. McChord asserted that, as worded, the proposed rule leaves open to interpretation the definition of a "report" and the amount of detail required. McChord proposed alternative language for WAC 480-75-650(2): "A report form titled, "Hazardous Liquid Annual Report Form" which can be obtained from the pipeline safety section of the commission. The annual report must include ..." McChord's suggestion for change to WAC 480-75-650(2) is appropriate and the proposed rule should be modified to reflect the suggested change.

     15 COMMISSION ACTION: After considering all of the information regarding this proposal, the commission finds and concludes that it should amend and adopt the rules as proposed in the CR-102 at WSR 06-24-128 with the changes described below.

     16 CHANGES FROM PROPOSAL: The commission adopts the proposal with the following changes from the text noticed at WSR 06-24-128.

     17 We recognize the difficulty operators would face under proposed WAC 480-75-450 in controlling the orientation of pipe seams during construction using boring or directional drilling techniques. Therefore, we amend the proposed rule to require orientation of pipe seams only when the pipe is laid in an open trench, as follows:

     Operators must assure that new pipeline construction conforms to the requirements of ASME B31.4. Information about the ASME edition adopted and where to obtain it are set out in WAC 480-75-999 Adoption by reference. The longitudinal seams of connecting pipe joints must be offset by at least two inches. In addition, the longitudinal seams must be located on the upper half of the pipe when laid in an open trench.

     18 We find McChord's proposal for the commission to prepare a standardized annual report form appropriate. Using a standardized form will eliminate confusion about what operators must include in a report and will provide the commission more useable information. Proposed WAC 480-75-650(2) is amended as follows:

     (2) A report titled, "Hazardous Liquid Annual Report Form" which can be obtained from the Pipeline Safety Section of the commission. The annual report must include in detail the following information:

     (a) Interstate and intrastate pipeline mileage in Washington state; and

     (b) List of reportable and nonreportable safety related conditions as defined in 49 C.F.R. 195.55.

     19 STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: After reviewing the entire record, the commission determines that WAC 480-75-270 should be adopted, and WAC 480-75-300, 480-75-450, 480-75-630, and 480-75-650 should be amended to read as set forth in Appendix A, as rules of the Washington utilities and transportation commission, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 2, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 2, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     20 THE COMMISSION ORDERS:

     21 The commission adopts WAC 480-75-270, and amends WAC 480-75-300, 480-75-450, 480-75-630, and 480-75-650 to read as set forth in Appendix A, as rules of the Washington utilities and transportation commission, to take effect on the thirty-first day after the date of filing with the code reviser pursuant to RCW 34.05.380(2).

     22 This order and the rule set out below, after being recorded in the register of the Washington utilities and transportation commission, shall be forwarded to the code reviser for filing pursuant to chapters 80.01, 34.05 RCW and 1-21 WAC.

     DATED at Olympia, Washington, April 2, 2007.

Washington Utilities and Transportation Commission

Mark H. Sidran, Chairman

Patrick J. Oshie, Commissioner

Philip B. Jones, Commissioner

OTS-9385.3

NEW SECTION
WAC 480-75-270   Damage prevention.   Each operator must comply with the provisions of chapter 19.122 RCW, to the extent those provisions apply to the operator. A failure to comply with any of the provisions of chapter 19.122 RCW is a violation of this rule. Each day a violation persists is a separate violation of this rule. In determining whether an operator has complied with the provisions of chapter 19.122 RCW, the definitions contained in that chapter will apply. The definitions in chapter 480-75 WAC (other than the definition of "operator") do not apply.

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     (2) Leak detection systems must be capable of detecting an eight percent of maximum flow leak within fifteen minutes or less.

     (3) Companies must have a leak detection procedure and a procedure for responding to alarms. The operator must maintain leak detection maintenance and alarm records.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 02-18-032 (Docket No. TO-000712, General Order No. R-500), § 480-75-300, filed 8/26/02, effective 9/26/02.]

[Statutory Authority: RCW 80.01.040 and 80.04.160. 02-18-032 (Docket No. TO-000712, General Order No. R-500), § 480-75-450, filed 8/26/02, effective 9/26/02.]

     (a) A fatality;

     (b) Personal injury requiring hospitalization;

     (c) Fire or explosion not intentionally set by the operator;

     (d) Spills of five gallons or more of product (((the commission request voluntary compliance with 49 CFR, Part 195.50 (b). If the Washington state legislature adopts this change, then notice of the five-gallon spill will be mandatory)));

     (((d))) (e) Damage to the property of the company and others of a combined total cost exceeding twenty-five thousand dollars (automobile collisions and other equipment accidents not involving hazardous liquid or hazardous-liquid-handling equipment need not be reported under this rule);

     (((e))) (f) A significant occurrence in the judgment of the company, even though it does not meet the criteria of (a) through (((d))) (e) of this subsection;

     (((f))) (g) The news media reports the occurrence, even though it does not meet the criteria of (a) through (((e))) (f) of this subsection.

     (2) A written report must be sent to the commission within one month of the incident. The report must include the following:

     (a) Name(s) and address(es) of any person or persons injured or killed or whose property was damaged;

     (b) The extent of injuries and damage;

     (c) A description of the incident including date, time, and place;

     (d) A description and maximum operating pressure of the hazardous liquid facilities implicated in the incident and the system operating pressure at the time of the incident;

     (e) The date and time the hazardous liquid facility returns to safe operations; and

     (f) The date, time, and type of any temporary or permanent repair.

     (3) An operator must give the commission telephonic notification within twenty-four hours of emergency situations including emergency shutdowns, material defects, or physical damage that impairs the serviceability of the pipeline.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 02-18-032 (Docket No. TO-000712, General Order No. R-500), § 480-75-630, filed 8/26/02, effective 9/26/02.]

     (2) For those companies not required to file form No. 6 the commission requires those companies to file annual report form 224-225 prescribed by the commission. The annual report will be mailed to each company by February 15 of each year. Companies must submit an annual report to the commission no later than April 1 of the succeeding year.)) Operators must file the following annual reports with the commission no later than April 1 for the preceding calendar year:

     (1) A copy of Pipeline and Hazardous Materials Safety Administration (PHMSA) F-7000.1-1 annual report required by the PHMSA, Office of Pipeline Safety.

     (2) A report titled, "Hazardous Liquid Annual Report Form" which can be obtained from the Pipeline Safety Section of the commission. The annual report must include in detail the following information:

     (a) Interstate and intrastate pipeline mileage in Washington state; and

     (b) List of reportable and nonreportable safety-related conditions as defined in 49 CFR 195.55.

[Statutory Authority: RCW 80.01.040 and 80.04.160. 02-18-032 (Docket No. TO-000712, General Order No. R-500), § 480-75-650, filed 8/26/02, effective 9/26/02.]

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