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Subject 515-9-1 SAFE INSTALLATION AND OPERATION OF NATURAL GAS TRANSMISSION AND DISTRIBUTION SYSTEMS

Rule 515-9-1-.01 Safe Installation and Operation of Natural Gas Transmission and Distribution Systems

By virtue of the authority vested in the Commission by law and pursuant to orders issued by the Commission on May 4, 1967, July 6, 1967, April 23, 1968, and October 29, 1970, all Rules and Regulations prescribed by the United States Department of Transportation applicable to the "Transportation of Natural and Other Gas by Pipeline: Minimum Safety Standards" (C.F.R. 49, Parts 191 and 192) are by this Rule made the Rules and Regulations of the Georgia Public Service Commission for the safe installation and operation of all natural gas transmission and distribution facilities by companies subject to the jurisdiction of the Commission within this State. (These Federal rules are prescribed as minimum standards for observance by cooperating State Commissions and the individual States cannot promulgate less strict rules for this purpose. The Georgia Public Service Commission has not varied from these Federal standards. Due to the volume of these Federal rules, to changes made therein which this Commission cannot control and to the ready availability of such rules from the Federal Government, those rules are not reproduced herein. Full current sets of the rules may be obtained from the United States Department of Transportation, Office of Pipeline Safety, Washington, D.C. If and when the Georgia Public Service Commission undertakes to adopt rules more strict than those Federal rules, such adoption will adhere to the provisions of the Administrative Procedure Act and will be published herein.)

Rule 515-9-1-.02 Safety Standards for Liquefied Natural Gas Facilities

By virtue of the authority vested in the Commission by law, all rules, regulations and amendments thereto prescribed by the United States Department of Transportation applicable to "Liquefied Natural Gas Facilities; Federal Safety Standards" (C.F.R. 49, Part 193) are by this Rule made the Rules and Regulations of the Georgia Public Service Commission for all natural gas transmission and distribution companies subject to the jurisdiction of the Commission within the State of Georgia. The Georgia Public Service Commission has not varied from these Federal Standards. Due to the volume of these Federal rules, to changes made therein which this Commission cannot control and to the ready availability of such rules from the Federal Government, those rules are not reproduced herein. Full current sets of the rules may be obtained from the United States Department of Transportation, Material Transportation Bureau, Washington, D.C. If and when the Georgia Public Service Commission undertakes to adopt rules more strict than those Federal rules, such adoption will adhere to the provisions of the Administrative Procedure Act and will be published herein.)

Rule 515-9-1-.03 Pipeline Safety Drug Testing

By virtue of the authority vested in the Commission by law, all rules, regulations and amendments thereto prescribed by the United States Department of Transportation applicable to Pipeline Safety Regulation,"Drug Testing: Federal Safety Standards" (C.F.R. 49, Parts 199 and 40) are by this Rule made the Rules and Regulations of the Georgia Public Service Commission for all natural gas transmission and distribution companies subject to the jurisdiction of the Commission within the State of Georgia. The Georgia Public Service Commission has not varied from these Federal Standards. Due to the volume of these Federal rules, to changes made therein which this Commission cannot control and to the ready availability of such rules from the Federal Government, those rules are not reproduced herein. Full current sets of the rules may be obtained from the United States Department of Transportation, Material Transportation Bureau, Washington, D.C. If and when the Georgia Public Service Commission undertakes to adopt rules more strict than those Federal rules, such adoption will adhere to the provisions of the Administrative Procedure Act and will be published herein.

Rule 515-9-1-.04 Notification of Proposed Construction

At least ten (10) days prior to the start of any new construction [as defined in Commission Utility Rule 515-9-3-.02(f) ] of (A) any transmission or distribution gas mainline or (B) any gas service line where the actual, planned or proposed replacement, relocation, construction, expansion or extension of such service line would be within 2,000 feet of the gas main or service lines of another gas operator, as shown on maps provided by that operator to the gas system operator proposing to engage in new construction or as otherwise known to such proposing gas system operator,-- a Report on GPSC Form GC-1 (developed by the Commission and an example of which is attached hereto as Exhibit A) shall be filed electronically with the Commission under Docket Number 24033-U and shall be sent electronically or via certified mail to each local distribution company, municipality, or other gas operators having distribution lines in the same county or counties where such construction is proposed. The electronic or certified mail notice shall be sent to each such other gas operator at the last address or addresses provided to the Commission by such operator; and it shall be the responsibility of each gas operator to keep such addresses current for the purpose of receiving notifications under this Rule. Prior notification would not be necessary in case of an emergency condition. An emergency condition is classified as the immediate reconstruction of a pipeline due to a hazardous condition or the immediate construction of a pipeline necessary to maintain gas service; and notification within 10 days after such emergency construction or repair would be sufficient. For good cause, the Commission's Facilities Protection Unit Director or such Director's designee may authorize construction to commence less than ten (10) days after the electronic filing required by this Rule. Once adopted by the Commission with this amendment to this Rule, such new GC-1 Form may be modified from time to time by order of the Commission. The terms "new construction" and "service line" as used in this Rule shall have the same meaning as prescribed in Commission Utility Rule 515-9-3-.02. Notwithstanding any other provision of this Rule, the replacement of a service line for the sake of integrity is maintenance (that is, attempting to maintain existing service) and does not require the filing and service of a GC-1 Form; provided, however, that the looping of lines for the purpose of increasing throughput will be considered new construction and requires the filing and service of a GC-1 Form, provided, further, that any GC-1 filing with the Commission shall expire if construction on the facilities covered thereby is not commenced within 45 days after the date of such filing, and any subsequent construction on such premises shall require the filing and service of a GC-1 Form. A sample GC-1 Form is attached hereto as Exhibit A.

EXHIBIT A

DOCKET NO. 24033-U

GEORGIA PUBLIC SERVICE COMMISSION

FORM GC-1

REPORT OF SPECIFICATIONS OF PROPOSED

CONSTRUCTION

Operator: _____________________________ Date _______________

Authorized Representative:

______________________________________________________________

Title:

_______________________________________________________________

Home County:

_______________________________________________________________

Certificate number (if construction is outside Home County): _________________________________

Construction Route:

From Street/Mile Post #:_________________ County: ______________

To Street/Mile Post #:___________________ County: _______________

New Construction: ____________ Reconstruction: _____________

Estimated Dates: Start of Construction:

_____________________________________________________

Completion of Construction:

________________________________________________

Length of Pipeline(s):________________________________________

Size of Pipeline(s):___________________________________________

Type and/or Grade of Pipeline(s):____________________________

Operating Pressure: _________________________________________

Rule 515-9-1-.05 Leak Standards

Natural gas leaks shall be classified at three levels as described in Exhibits "A","B", and "C" attached hereto.**

* Form GC-1 appears on page 78.02

** Exhibits A, B and C start on page 78.02-1

GEORGIA PUBLIC SERVICE COMMISSION

FORM GC-1

REPORT OF SPECIFICATIONS OF PROPOSED CONSTRUCTION

Operator: Date:____________________ Date:_____________________

Mailing Address:______________________________________________

______________________________________________

Authorized Representative:____________________________________

Title:________________________________________________________

Construction Route:___________________________________________

From Street/Mile Post #:_______________ County:_______________

To Street/Mile Post #:________________ County:________________

New Construction:______________ Reconstruction:_______________

Estimated Dates: Start of Construction:_______________________

Completion of Construction:_________________________

Length of Pipeline(s):_____________________

Size of Pipeline(s):_______________________

Type and/or Grade of Pipeline(s):_____________________________

Operating Pressure:___________________________________________

Sent To: Georgia Public Service Commission

Gas Safety Office

244 Washington Street, S.W.

Atlanta, GA 30334

EXHIBIT "A"

GRADE

DEFINITION

ACTION CRITERIA

EXAMPLES

1

A leak that represents an existing or probable hazard to persons or property, and requires immediate repair or continuous action until the conditions are no longer hazardous.

Requires prompt action

* to protect life and property, and continuous action until the conditions are no longer hazardous.

* The prompt action in some instances may require one or more of the following:

a. Implementation of company emergency plan (192.615)

b. Evacuating premises.

c. Blocking off an area.

d. Rerouting traffic.

e. Eliminating sources of ignition.

f. Venting the area.

g. Stopping the flow of gas by closing valves or other means.

h. Notifying police and fire departments.

1. Any leak which, in the judgement of operating personnel at the scene, is regarded as an immediate hazard.

2. Escaping gas that has ignited.

3. Any indication of gas which has migrated into or under a building, or into a tunnel.

4. Any reading at the outside wall of a building, or where gas would likely migrate to an outside wall of a building.

5. Any reading of 80% LEL, or greater, in a confined space.

6. Any reading of 80% LEL, or greater in small substructures (other than gas associated substructures) from which gas would likely migrate to the outside wall of a building.

7. Any leak that can be seen, heard or felt, and which is in a location that may endanger the general public or property.

EXHIBIT "B"

GRADE

DEFINITION

ACTION CRITERIA

EXAMPLES

2

Leak that is recognized as being non-hazardous at the time of detection, but justifies scheduled repair based on probable future hazard.

Leaks should be repaired or cleared within one calendar year, but no later than 15 months from the date the leak was reported. In determining the repair priority, criteria such as the following should be considered.

a. Amount of migration of gas.

b. Proximity of gas to buildings and subsurface structures.

c. Extent of pavement.

d. Soil types, and soil conditions (such as frost cap, moisture and natural venting).

Grade 2 leaks should be reevaluated at least once every six months until cleared. The frequency of reevaluation should be determined by the location and magnitude of the leakage contition.

Grade 2 leaks may vary greatly in degree of potential hazard. Some Grade 2 leaks, when evaluated by the above criteria, may justify scheduled repair within the next 5 working days. Others will justify repair within 30 days. During the working day on which the leak is discovered, these situations should be brought to the attention of the individual responsible for scheduling leak repair.

On the other hand, many Grade 2 leaks, because of their location and magnitude, can be scheduled for repair on a normal routine basis with periodic reinspection as necessary.

A. Leaks Requiring Action Ahead of Ground Freezing or Other Adverse Changes in Venting Conditions. Any leak which, under frozen or other adverse soil conditions, would likely migrate to the outside wall of a building.

B. Leaks Requiring Action Within Six Months.

1. Any reading of 40% LEL, or greater under a sidewalk in a wall-to-wall paved area that does not qualify as a Grade 1 leak.

2. Any reading of 100% LEL, or greater, under a street in a wall-to-wall paved area that has significant gas migration and does not qualify as a Grade 1 leak.

3. Any reading less than 80% LEL in small substructures (other than gas associated substructures) from which gas would likely migrate creating a probable future hazard.

4. Any reading between 20% LEL and 80% LEL in a confined space.

5. Any reading on a pipeline operating at 30% SMYS, or greater, in a class 3 or 4 location, which does not qualify as a Grade 1 leak.

6. Any reading of 80% LEL, or greater, in gas associated substructures.

7. Any leak which, in the judgement of operating personnel at the scene, is of sufficient magnitude to justify scheduled repair.

EXHIBIT ''C''

GRADE

DEFINITION

ACTION CRITERIA

EXAMPLES

3

A leak that is non- hazardous at the time of detection and can be reasonably expected to remain non-hazardous.

These leaks should be reevaluated during the next scheduled survey, or within 15 months of the date reported, whichever occurs first, until the leak is regraded or no longer results in a reading.

A. Leaks Requiring Reevaluation at Periodic Intervals

1. Any reading of less than 80% LEL in small gas associated substructures.

2. Any reading under a street in areas without wall-to-wall paving where it is unlikley the gas could migrate to the outside wall of a building.

3. Any reading of less than 20% LEL in a confined space.

Rule 515-9-1-.06 Incident Requiring Telephonic Notification

(1) Concurrent to and in conformance with the notice requirements delineated in 49 C.F.R. § 191.5, each operator shall give telephonic notice of such incident to the Commission's Pipeline Safety Staff.
(2) For the purposes of this Rule,"incident" shall mean:
(a) An event that involves a release of gas from a pipeline, or of liquefied natural gas, liquefied petroleum gas, refrigerant gas, or gas from an LNG facility, and that results in one or more of the following consequences:
1. A death, or personal injury necessitating in-patient hospitalization;
2. Unless otherwise adopted by Federal Code( 49C.F.R. § 191.3 ), estimated property damage of $50,000.00 or more, including loss to the operator and others, or both, but excluding cost of gas lost;
3. Unless otherwise adopted by Federal Code( 49C.F.R.§ 191.3 ), unintentional estimated gas loss of three million cubic feet or more;
(b) An event that results in any emergency shutdown of an LNG facility. Activation of an emergency shutdown for reasons other than an actual emergency does not constitute an incident.
(c) An event that is significant in the judgment of the operator, even though it did not meet the criteria of paragraphs (a) or (b) of this definition. Operators shall evaluate their respective natural gas systems and provide written guidance for their personnel in the Operator's Operations & Maintenance and/or Emergency Procedural Manuals as to what constitutes a "significant event" for their natural gas system which would require telephonic notification.
(3) Within thirty (30) days following any incident, any operator having so reported, shall prepare and submit to the Commission, a written report describing the relevant facts regarding such incident as well as any investigation conducted by the operator.