American Oil and Gas Reporter - May 2016 - 30

Congress, particularly the Senate, to move
anything controversial or challenging
right now," he reflects. "The fact that the
committee leadership was able to find a
sizable collection of energy policy issues
that it could get done without either the
committee process or the floor process unraveling the items in which they had consensus is an indication of how hard they
worked."
Other Developments
Other Capitol Hill developments in

April pertinent to oil and gas companies
include the Senate's reauthorization of the
Federal Aviation Administration because
API notes, the legislation includes a provision to allow use of unmanned aircraft
for oil and gas facilities, refineries and
pipeline inspection and response activities.
According to API Midstream Director
Robin Rorick, the measure will provide the
industry with a new tool to protect the public and environment. "The use of unmanned aerial system technologies will
give us another means to safely conduct

preventive inspections and response activities," he says.
According to press accounts, April
also saw House Republicans propose to
boost research and development for fossil fuel programs in 2017 by $13 million
above 2016 funding to $645 million,
while cutting programs for renewable
energy research and development by $248
million under the amount allocated for
2016, as well as by $1.07 billion less than
President Obama's request.
❒

Pipeline Safety

Proposed Rule Impacts Gas Gathering
By Keith J. Coyle
and James Curry
WASHINGTON-A pipeline safety
regulation published in April by the U.S.
Department of Transportation's Pipeline
and Hazardous Materials Safety Administration goes beyond traditional natural
gas transmission to have serious implications for onshore gas gathering.
PHMSA published its long-awaited notice of proposed rule making for natural
gas transmission and gathering pipelines
on April 8. Under development for more
than four years, the NOPR proposes significant changes to the regulations for gas
pipeline facilities in 49 CFR Part 192, including regulations for onshore gas gathering lines.
Adopted a decade ago, the current regulations rely, in large part, on American Petroleum Institute Recommended Practice
80, Guidelines for the Definition of Onshore Gas Gathering Lines, which is a voluntary consensus standard for classifying
onshore production operations and gas
gathering lines. Current regulations contain an exemption for gas gathering lines
in rural, Class 1 locations-i.e., areas
where 10 or fewer buildings intended for
human occupancy are located in the vicinity of a gathering line.
The NOPR proposes to change these
regulations by:
* Modifying the requirements for determining whether a pipeline qualifies as
an onshore gas gathering line;
* Applying portions of the Part 192
regulations to certain previously unregulated Class 1 gas gathering lines; and
* Applying federal reporting requirements to all gas gathering lines (whether
regulated or not).
Gathering Line Definition
PHMSA is proposing to create a new
30 THE AMERICAN OIL & GAS REPORTER

definition for onshore gathering lines, as
well as supplementary definitions for onshore production facilities or production
operations, gas treatment facilities, and gas
processing plants. While the text of the proposed amendments suggests PHMSA is
seeking to codify many of the basic concepts embodied in the existing regulations,
the NOPR would eliminate the reference
to and depart from RP-80's functional approach in at least two significant ways.
First, the proposed definition of "onshore production facility or onshore production operation" would start the gathering function at the furthermost downstream point of measurement for purpos-

KEITH J.
COYLE

Keith J. Coyle is a shareholder in
Babst Calland's Energy and Natural
Resources Group, where his practice
focuses primarily on the regulation of
pipelines and liquefied natural gas
facilities and the transportation of
hazardous materials. Along with James
Curry, he leads Babst Calland's
pipeline and hazardous material safety practice in the firm's Washington office. Coyle earned a B.A. with highest
honors in international relations from
Lehigh University in 2000, a J.D. in integrated trial advocacy from Temple
University in 2005, and an LL.M. in law
and government from American University in 2006.

es of calculating mineral severance, or
where the flow stream from two or more
wells commingles. Under the current federal rules, RP-80 generally allows operators to extend the production function
much farther downstream.
Second, it appears the proposed definition of "gathering line (onshore)" would
restrict use of the incidental gathering designation to pipelines that do not leave property under the control of either the incidental gathering line operator or the operator
of an adjacent pipeline where custody
transfer takes place, or to pipelines that do
not exceed one mile in length and that do
not cross a state or federal highway or ac-

JAMES
CURRY

James Curry is a shareholder in
Babst Calland's Energy and Natural
Resources Group, and represents
clients in pipeline safety matters at the
Pipeline and Hazardous Materials
Safety Administration, state commissions, and federal courts. Along with
Keith Coyle, he leads Babst Calland's
pipeline and hazardous material safety practice in the firm's Washington office. Curry earned his B.S. from Boston
University in 2001 and his J.D. from Seton Hall University School of Law in
2005.

American Oil and Gas Reporter - May 2016

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