POINT RUSTON, LLC o; 521:? H. 5r. loo 259.15: mm Huston. cairn January 20, 2015 SENT VIA EMAIL AND US POST Utilities and Transportation Commission Attn. Mr. David Lykken Pipeline Safety Director 1300 S. Evergreen Park Dr. SW =33: f. PO Box 47250 ii: Olympia, WA 93504?7250 f3; - df. Sii?d? EL i i vii-90=8 Hi1 RE: Point Ruston LLC Reply to Notice of Probable Violations Mr. Lykken: This letter and the attached documents are in response to your correspondence dated December 19, 2014, sent on behalf of the Utilities and Transportation Commission and addressed to the attention of Point Ruston LLC. Your letter sets forth the concerns with the alleged ?propane tank and distribution system serving Point Ruston, LLC, buildings 2A and Your letter provides notice of ?probable violations? cited under the authority of 49 CFR 192 and WAC 480-93, and one ?area of concern.? For the reasons stated below, it is our contention that 49 CFR 192 and WAC 480-93 do not apply to the single propane tank (and two lines) which provide propane to the two buildings. However, in order to endeavor to resolve the questions and concerns raised by the UTC, please also see below and enclosed, substantive answers and documentation responsive to the speci?c concerns. Ultimately, we would like to work with the UTC to address any safety issues raised, and ensure compliance with applicable law. Your letter does indicate that, based on this response, the Washington Utilities Transportation Commission may issue penalties or institute other relief. We respectfully request that the UTC hold any ?enforcement action? in abeyance as we work collaboratively to resolve your concerns. Thank you for your consideration. In order to set the factual basis for our response, please understand the following: 1. The buildings at issue are commonly referred to as the Copperline Apartment Building and the Copperline Condominium Building, (collectively, the ?Buildings?). 2. Currently a 3,000 gallon tank provides propane gas to two adjacent buildings via two separate underground lines (hereinafter collectively referred to as the ?Tank?). 3. A permanent propane tank greater than 125 was approved by the City of Tacoma Fire Department pursuant to Permit No. 13 00000 8776 on May 1, 2013. Mechanical Permits for the mechanical ?xtures and LP piping for the Buildings were approved by the City of l'UIHllill?il?tlii] HM Tacoma pursuant to Permit Nos. 40000183055, 40000218220, 40000217718, and 40000222110, 40000225151, on 6/13/2012, 2/14/2014, 2/12/2014, 4/17/2014, and 6/26/2014, respectively. 4. The Copperline Apartment Building utilizes the Tank for three fireplace inserts located in the lobby and two lounges of the building, and for a back-up Kohler generator that is intended to power the sanitary lift station in the case of a power failure. 5. The Copperline Condominium Building makes the Tank available for use by its 43 residential owners for cooking stove-tops, ?re?places, and BBQ hook-ups. 6. The Tank is owned and operated by the owners of the Copperline Apartment Building and the Copperline Condominium Building, (collectively, the ?Owners?), through the Point Ruston Owner?s Association 7. The Tank is located upon private property, which has been dedicated to the owners of the Buildings via the PROA. 8. The PROA is the single customer of the Tank, and as such provides the propane to the Buildings which are part of the PROA. 9. The PROA does not charge the Owners for the propane and the PROA does no resell the gas, nor is the gas resold to any person or entity, nor is it paid through rents. A. 49 CFR 192 does not apply to the Tank. Your letter provides notice of two ?probable violations? cited pursuant to the authority of 49 CFR 192. However, based on our analysis of the law in the context of the aforementioned facts, 49 CFR 192 does not apply to the Tank. 49 CFR 192 ?prescribes minimum safety requirements for pipeline facilities and the transportation of 49 CFR Under federal law, ?Transportation ofgas? means the gathering, transmission, or distribution of gas by pipe or the storage of gas, in or affecting interstate or foreign commerce. See 49 CFR 192.3. The Tank described above does not affect interstate or foreign commerce, and therefore the requirements of 49 CFR 192 do not apply thereto. Moreover, to the extent the Utilities and Transportation Commission (?Commission?) has adopted the standards set forth 49 CFR 192 pursuant to WAC 480-93-999, the standards do not apply to the Tank pursuant to 49 CFR because 49 CFR 192 does n_ot apply to pipeline systems which transport only petroleum gas or petroleum gas/air mixtures to Fewer 1 PROA inadvertently charged the Owners a total of approximately $699 from the ?rst ?lling of the Tank. This amount has been refunded as a credit against the Owners HOA dues. The PROA has not, and will not, charge the Owners for any propane. 2 For relevant de?nitions, see 49 CFR 192.3: ?Pipeline means all parts of those physical facilities through which gas moves in transportation, including pipe, valves, and other appurtenance attached to pipe, compressor units, metering stations, regulator stations, holders, and fabricated assembly.? ?Pipeline facility? means new and existing pipelines, rights-of-way, and any equipment, facility, or building used in the transportation of gas or in the treatment of gas during the course of transportation.? ?Transportation of gas? means the gathering, transmission, or distribution of gas by pipe 01' the storage of gas, in or affecting interstate or foreign commerce. than 10 customers, if no portion of the system is located in a public place; or (ii) a single customer, if the system is located entirely on the customer?s premises. See 49 CFR In the present case, the Tank serves fewer than 10 customers. It serves one customer: the PROA. The PROA is the ultimate end user of the gas,3 and no portion of the Tank is located in a public place. Therefore, 49 CFR 192 does not apply to the Tank pursuant to 49 CFR In addition, the Tank serves a single customer and is located entirely upon the premises. Thus, 49 CFR 192 does not apply to the Tank pursuant to 49 CFR In sum, the standards and requirements set forth in 49 CFR 192 do not apply to the Tank. In addition, UTC notice of ?probable violation? no. I alleges ?Point Ruston is jurisdictional to 49 CFR 191 49 CFR 191 ?prescribes requirements for the reporting of incidents, safety-related conditions, and annual pipeline summary data by operators of gas pipeline facilities.?49 CFR 191.1. An ?operator? means a person who engages in the transportation of gas and ?Transportation of gas? means the gathering, transmission, or distribution of gas by pipeline, or the storage of gas in or affecting interstate or foreign commerce. 49 CFR 191.3. The Tank described above does not affect interstate or foreign commerce, and therefore the requirements of 49 CFR 191 do not apply thereto. Moreover, to the extent the UTC has adopted 49 CF 192 pursuant to WAC 480?93-999, the requirements do not apply because the Tank serves fewer than 10 customers; as well as (ii) a single customer located entirely on the customer?s premises. To the extent the Commission has adopted the reporting standards set forth 49 CFR 191 pursuant to WAC 480-93-999, and to the extent the same are applicable to the Tank, the Owners shall comply. B. WAC 480-93 does not apply to the Tank. Your letter provides notice of four separate ?probable violations? cited pursuant to the authority of WAC 480-93. However, WAC 480-93 does not apply to the Tank. WAC 480-93 sets forth safety requirements applicable to each ?gas pipeline company.? WAC 480?93?007. The rules set forth in WAC 480-93 are adopted by the Commission pursuant to the authority of RCW 81.88. However, pursuant to the statute, the rules must be ?compatible with minimum federal requirements.? RCW The relevant de?nitions pertaining to a ?gas pipeline company? are the same in RCW 81.88 and WAC 480?93.4 Applicable federal regulations cited to in WAC 480-93 are incorporated by reference.5 3 Alternatively, the Tank only serves two customers: (I) the owners of the Copperline Apartment Building and (2) the owners of the Copperline Condominium Building. 4 De?nitions in WAC 480-93-005: (12) "Gas pipeline" means all parts of a pipeline facility through which gas moves in transportation, including, but not limited to, line pipe, valves, and other appurtenances connected to line pipe, compressor units, metering stations, regulator stations, delivery stations, holders and fabricated assemblies. "Gas pipeline" does not include any A "Gas pipeline company" means a person or entity constructing, owning, or operating a gas pipeline for transporting gas, and includes a person or entity owning or operating a master meter system. However, pursuant to RCW 81.88 and WAC 480?93: ?Gas pipeline? does 310; include any pipeline facilities, other than a master meter system, owned by a consumer or consumers of the gas, located exclusively on the consumer or consumers' property, and none of the gas leaves that property through a pipeline.? RCW 81.88.010(3) WAC In the present case, the Tank is owned by the Owners of the Buildings who intern consume the gas. The Tank is also located exclusively on the consumers? property and none of the gas leaves the property through a pipeline. Furthermore, the Tank does not qualify as a ?Master meter system.? ?Master meter system? means a pipeline system for distributing gas within, but not limited to, a definable area, such as a mobile home park, housing project, or apartment complex, where the operator purchases metered gas from an outside source for resale through a gas distribution pipeline system. The gas distribution pipeline system supplies the ultimate consumer who either purchases the gas directly through a meter or by any other means, such as by rents.? WAC 1n the present case, the Owners are the ultimate consumers of the gas. They operate the Tank and directly pay for the gas through the PROA. The gas is n_ot resold to any person or entity, nor is it paid through rents. As a result, the Tank does not meet the de?nition of a ?gas pipeline? under RCW 81.88 01' WAC 480-93, and therefore the requirements provided therein are inapplicable to the Tank. pipeline facilities, other than a master meter system, owned by a consumer or consumers of the gas, located exclusively on the consumer or consumers' property, and none of the gas leaves that property through a pipeline. (13) "Gas pipeline company" means a person or entity constructing, owning or operating a gas pipeline for transporting gas. "Gas pipeline company" includes a person or entity owning or operating a master meter system. "Gas pipeline company" does not include excavation contractors or other contractors that contract with a gas pipeline company. Definitions in RCW 81.88.010: (3) "Gas pipeline" means all parts of a pipeline facility through which gas moves in transportation, including, but not limited to, line pipe, valves, and other appurtenances connected to line pipe, compressor units, metering stations, regulator stations, delivery stations, holders, and fabricated assemblies. "Gas pipeline" does not include any pipeline facilities, other than a master meter system, owned by a consumer or consumers of the gas, located exclusively on the consumer or consumers' property, and none of the gas leaves that property through a pipeline. (4) "Gas pipeline company" means a person or entity constructing, owning, or operating a gas pipeline for transporting gas. "Gas pipeline company" includes a person or entity owning or operating a master meter system. "Gas pipeline company" does not include excavation contractors or other contractors that contract with a gas pipeline company. (10) "Master meter system? means a pipeline system for distributing gas within, but not limited to, a definable area, such as a mobile home park, housing project, or apartment complex, where the operator purchases metered gas from an outside source for resale through a gas distribution pipeline system. The gas distribution pipeline system supplies the ultimate consumer who either purchases the gas directly through a meter or by any other means, such as by rents. 5 With limited exceptions, the Commission has adopted by reference Parts 191, 192, 193, and 199 of Title 49 Code of Federal Regulations. See WAC 480-93 999(1). Because the Tank does not qualify as a ?gas pipeline? under the statute, it follows that the owners of the Buildings (the operators of the Tank) are not considered operators of a ?gas pipeline.? Ultimately the Tank and Owners are not subject to the jurisdiction of the Commission under RCW 81.88, and not subject to the rules set forth in WAC 480?93. C. Responses to Notice of Probable Violations Description of Tank and line system installation: The Tank lines were installed in accordance with the requirements of 49 CFR 192; and were installed by construction personnel certi?ed on the installation of the pipe pursuant to 49 CFR 192. See Addendums C-E. The pipe materials utilized are set forth in Addendum D. The trench was lined with a 602. nonwoven geotextile fabric. The pipe bedding utilized was a #4x#8 sand. After the pipe was installed, additional#4x#8 bedding was placed 6? above the pipe. The remainder of the trench was then backfilled with gravel borrow. The work was approved by the City of Tacoma for compliance with applicable ?re and building codes pursuant to the following permits:_City of Tacoma Fire Department Permit No. 13 00000 8776, issued on May 1, 2013. Mechanical Permits for the mechanical fixtures and ?piping? for the Buildings were approved by the City of Tacoma pursuant to Permit Nos. 40000183055, 40000218220, 40000217718, and 40000222110, 40000225151, on 6/13/2012, 2/14/2014, 2/12/2014, 4/17/2014, and 6/26/2014, respectively. The line was pressure tested and met applicable pressure testing requirements as provided in Addendum C. Addendums Permits Site Plan Daily Observation Report (Includes Pressure Testing Narration/Results). Materials? List Personnel Certificate of Qualifications Fire Place Memorandum 0 Collectively referred to as ?Tank Construction Documentation. Probable Violation Nos. 1 2 49 CFR 192. 1. UT Finding (49 CFR 192): Operator Point Ruston, LLC transports petroleum gas (propane) to more than 10 customers in the Point Ruston, LLC building 23. Therefore, Point Ruston is jurisdictional to 49 CFR 19] 192. Response: See Response Provided in Section Above. 2. UTC indins,r (49 CFR Part 192.11): Operator must provide evidence that propane system was designed and constructed in accordance with the requirements of A 58 and 59 prevail. Response: See Response Provided in SectiOn Above. See also Tank Construction Documentation submitted herewith. Probable Violation Nos. 3 - 6 WAC 480-93. 3. UTC indingr (WAC 480?93?0] 7): Point Ruston, LLC did not submit applicable construction procedures, designs and specifications to be used in construction 45 days prior to the initiation of construction activity. The Point Ruston Propane Distribution section of the pipeline in question was complete on September 25, 2014, during my first observation of the site. Point Ruston must show that the propane system was constructed in accordance with 49 CFR 192 and WAC 480-93. Response: See Response Provided in Section Above. See also Tank Construction Documentation submitted herewith. UT Finding (WAC 480-93-013): Point Ruston, LLC could not provide a copy of their Operator Quali?cation program nor show that system operators are qualified to operate and construct the propane system. Response: See Response Provided in Section Above. See also Tank Construction Documentation submitted herewith. The personnel who performed the work were properly qualified, supervised, and evaluated, in compliance with 49 CFR 192.05, as adopted in WAC 480-93-013. UTC Finding WAC 480-93-180): Point Ruston, LLC could not provide a copy of their Plans and Procedures. A book with generic fusing procedures from Amerigas was submitted as their fusing procedure. Some plastic pipe speci?cations were included in the submittal. Point Ruston is required to submit an Operations and Maintenance manual to the commission. The manual must be compliant with 49 CF I 92.605 and WAC 480?93480. Response: See Response Provided in Section Above. See also Tank Construction Documentation submitted herewith. All installation personnel underwent training and were certi?ed on applicable installation procedures prior to pipe installation. See Addendum E. Also, the Plan and Procedures were provided to UTC for a separate project, and not for this Tank of these Buildings. The installation for these Building was an electrofusion coupling. Please see Addendum C, which contain the Daily Observations from the onsite engineer. UT Finding WAC 480-93-1 70): During observations of a pressure test of the Point Ruston Propane Distribution pipeline, I noted that the test meter did not have a calibration sicker showing when 0-100 PSI gauge was due for calibration. Operator told me that the meter was only two months old and had been brought just for this job. When asked about the calibration. ofthe gauge, the operator said that he had thrown the paperwork in the box away. Response: As this pipe was installed in 2013 the UTC inspector would not have been in a position to review the PSI gauge. The UTC inspector saw the gauge used for the site wide pipe, which has now been abandoned. However, see Addendum C, which references the pressure testing protocol, as well as provides photographic evidence of the pressure tests that were conducted on these pipes. Areas of Concern or Field Observations: 1. UT Finding: Staff observed that the 28 common room on the ground ?oor smelled of a carbon rich atmosphere a?er the log insert was used prior to our inspection. This observation leads me to suspect that the carbon rich atmosphere is there result of too rich of a gas to air ratio. This could be caused by installing a natural gas appliance and using propane gas as the fuel. Response: Pursuant to the Fire Place Memorandum attached hereto as Addendum the Owners have con?rmed that the appropriate LP conversion kit was correctly installed in the ?replace and it is operating appropriately with the correct gas to air ratio. Please review and consider the above responses and enclosed documentation and do not hesitate to contact me with any further questions or concerns. We look forward to workng cooperatively with the UTC to resolve this matter and we, again, respectfully request that any enforcement action be held in abeyance as we work collaboratively with the UTC to resolve these concerns. Thank you for your consideration. Sincerely, Loren Cohen Manager of Legal Affairs