BEFORE THE
UNITED STATES DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
Notice of Regulatory Review

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Docket No. DOT-OST-2017-0069

COMMENTS OF NISOURCE INC.
ON THE NOTIFICATION
OF REGULATORY REVIEW
On October 2, 2017, the Department of Transportation (“DOT” or “the Agency”)
issued a Notification of Regulatory Review (“Regulatory Review”).1 The Regulatory
Review invited interested parties to submit comments on or before November 1, 2017.2
On November 3, 2017, the DOT reopened the comment period until December 1, 2017.3
NiSource Inc. (“NiSource”) hereby submits the following comments in response to the
Regulatory Review.
I. Introduction
NiSource is a public utility holding company headquartered in Merrillville,
Indiana. It is the ultimate corporate parent of seven local gas distribution companies
(“NiSource LDCs”), including Bay State Gas Company d/b/a Columbia Gas of
Massachusetts, Columbia Gas of Kentucky, Inc., Columbia Gas of Maryland, Inc.,
Columbia Gas of Ohio, Inc., Columbia Gas of Pennsylvania, Inc., Columbia Gas of
Virginia, Inc., and Northern Indiana Public Service Company. Together, these companies
provide natural gas distribution service to approximately 3.4 million customers in seven
states, through a network of almost 60,000 miles of transmission and distribution
pipelines. Each of these companies is subject to the minimum pipeline safety standards

Notification of Regulatory Review, 82 Fed. Reg. 45750 (October 2, 2017) (hereinafter “Regulatory Review”).
Id.
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Notification of Regulatory Review, 82 Fed. Reg. 51178 (November 3, 2017).
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 set forth in 49 C.F.R. Part 192. As a result, both NiSource and its LDC subsidiaries have a
vital interest in the issues to be addressed in this proceeding.
II. General Comments
NiSource is committed to safety and the efforts by the Pipeline and Hazardous
Materials Safety Administration (“PHMSA”) to improve pipeline safety. NiSource fully
supports PHMSA’s efforts to challenge operators to continue to enhance and improve the
safety and reliability of their natural gas systems—whether transporting gas across
multiple states or simply down the street to end-use customers. PHMSA’s regulatory
oversight and policy materially impact how operators continue to improve the safety of
the infrastructure relied upon by our customers and the U.S. economy generally. For
example, the Integrity Management Plan (“IMP”) rules4 — both Transmission (“TIMP”)
and Distribution (“DIMP”) — adopted by PHMSA are an ideal framework that serves to
further pipeline safety while providing operators the flexibility to manage risk while
taking into account the unique operational profiles of their natural gas pipeline systems.
This is critical when it comes to impacting overall safety because each operator’s system
is unique, and the specific enhancements that will make each of those systems safer must
be tailored to those systems based on the operator’s integrity management plans.
NiSource encourages PHMSA to continue to employ an approach to safety that permits
operators to address their specific highest priority risks.
NiSource appreciates that the focus of the Regulatory Review is on the costbenefits of agency rulemakings and other actions. NiSource urges DOT and PHMSA to
scrutinize the anticipated costs associated with proposed regulatory action, and to

The PHMSA’s final rule on Pipeline Safety: Integrity Management Program for Gas Distribution Pipelines, 74
Fed. Reg. 63905 (December 4, 2009). See also Regulatory Review at Appendix A, No. 5.
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 specifically weigh those costs, which will ultimately get passed on to our customers,
against the actual safety benefits of the proposed actions. For example, PHMSA could,
and routinely does, issue rules that require operators take to specific operational action
within a certain prescribed time period. While well intentioned, if the operational activity
addresses a lower priority risk in the company’s integrity management plan — or what
has been deemed no risk at all for that specific operator — then PHMSA has
unintentionally diverted resources from higher priority risks to a lower priority risk.
Without consideration for existing Integrity Management Programs, which are constantly
under review by operators, such new, and incremental, operational compliance
requirements can actually have the unintended consequence of diminishing, rather than
improving, overall system safety. For operators such as NiSource, who are highly focused
on replacing priority pipe, which is a high risk item in our integrity management
programs, increasing specific operational requirements around lower risk items has the
potential to lessen our ability to reach our replacement mileage goals, and certainly
increases costs to our customers.

For many of our operating companies, these

replacement and modernization programs constitute the single, most effective means of
reducing risk over the long term and enhancing the safety of the NiSource LDCs’
distribution systems.
NiSource supports the joint comments filed by the American Gas Association
(“AGA”), the American Petroleum Institute (“API”), and the Interstate Natural Gas
Association of America (“INGAA”) in this docket that specifically identify PHMSA rules
that might be considered for repeal, replacement, suspension, or modification. NiSource
also wishes to draw the Agency’s attention to the following specific rules, by way of
example:
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191.3, Definition of an “Incident” – NiSource recommends adjusting the
dollar threshold for estimated property damage for the rate of inflation from
the date in which it was last set, and continuing to do so every five years.
The existing dollar threshold has remained unchanged for over thirty years
and NiSource submits it is an additional burden on operators filling out the
reports, and regulators reviewing the reports, and distorts incident statistics
over time.
192.125, Design of Copper Pipe – NiSource recommends removing this
section. The industry practice of installing copper was replaced in the 1970s
by plastic pipe. Therefore, this section is no longer necessary.
192.147 (c), Design of Cast Iron Flanges – NiSource recommends deleting
this sub-section. Installing Cast Iron facilities is obsolete. Therefore, this
sub-section should be deleted.
192.281(b) and (d), Solvent Cement, and Adhesive Joints – NiSource
recommends deleting these sub-sections. The industry practice of using
solvent and adhesive joining was abandoned with the inception of heat
fusion plastic material joining. Therefore, these sub-sections should be
deleted.
192.353(a), Customer Meters and Regulators: Location – NiSource
recommends formally recognizing excess flow valves (“EFVs”) in regulation
as a viable substitution for meter protection in cases where some type of
protection is deemed necessary to protect the meter. NiSource recognizes
an EFV may not be a viable substitution in every instance, but submits it
should be an option that can be considered by the operator.
192.373, Service Lines: Cast Iron and Ductile Iron – NiSource recommends
deleting this section. The practice of installing cast iron and wrought iron
services was abandoned with the inception of steel and plastic technologies.
Therefore, this section is obsolete and should be deleted.
192.377, Service Lines: Copper – NiSource recommends deleting this
section. The industry practice of installing copper services was replaced in
the 1970s by the use of plastic pipe. Therefore, this section is no longer
necessary.
192.619 (a)(3), Maximum Allowable Operating Pressure – For pre-1970
lines that do not have pressure test documentation, NiSource recommends
deleting the requirement that the operator has documented the highest
operating pressure between 1965 and 1970 if the line has operated at the
same pressure uninterrupted since 1970. NiSource also recommends
deleting the requirement for pre-1970 low pressure systems that have
continued to operate at low pressure, uninterrupted since 1970. The
premise being that if a line has operated at the same pressure safely,
uninterrupted for the last 47 years, the documentation of that pressure
between 1965 and 1970 is irrelevant to its safe operation today.

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 III. Conclusion
In closing, NiSource appreciates the opportunity to comment on the Regulatory
Review. NiSource asks that DOT fully consider the joint comments submitted by AGA,
API, and INGAA as well as those set forth herein—underscoring that each operating
system is unique and that operators must have the flexibility to focus their resources on
their highest risks, which ultimately ensures the best value in terms of cost and safety for
all customers and the general public.
Respectfully submitted,
NISOURCE INC.
By: ____________________
Kimberly S. Cuccia
Joseph M. Clark
NiSource Corporate Services Co.
290 W. Nationwide Boulevard
Columbus, Ohio 43215
614-460-4957

November 14, 2017

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