CHAPTER 20:10:37
PIPELINE SAFETY RULES
Section
20:10:37:01 Definitions.
20:10:37:02 Scope and application.
20:10:37:03 Applicability of procedural rules.
20:10:37:04 Inspections.
20:10:37:05 Pipeline operator's obligations.
20:10:37:06 Inspector's reporting requirements.
20:10:37:07 Pipeline operator's receipt of the inspector report.
20:10:37:08 Probable non-compliance inspection results.
20:10:37:09 Pipeline operator's inspection response.
20:10:37:10 Pipeline operator's incident reporting requirements.
20:10:37:11 Inspector's incident investigation.
20:10:37:12 Post-incident investigation meeting.
20:10:37:13 Incident report.
20:10:37:14 Pipeline operator's obligations upon completion of inspector's incident report.
20:10:37:15 Pipeline operator's failure to reply.
20:10:37:16 Request for hearing.
20:10:37:17 Change of ownership.
20:10:37:18 Notice requirements for transmission line construction.
20:10:37:19 Annual report.
20:10:37:01. Definitions.
Terms defined in SDCL 49-34B-1 have the same meaning when used in this chapter. In addition, terms used in this chapter mean:
(1) "Inspector," a pipeline safety
inspector employed by, or contracted as an agent of the commission;
(2) "Incident," is any of the
following events:
(a) A release of gas from a gas pipeline
facility or of liquefied natural gas or gas from a liquefied natural gas
facility; and
(i) A death, or personal
injury necessitating in-patient hospitalization; or
(ii) Estimated property damage,
including cost of gas lost, of the operator or others, or both, of $50,000 or
more;
(b) An event that results in an emergency
shutdown of a liquefied natural gas facility; or
(c) An event that is significant, in the
judgment of the operator, even though it did not meet the criteria of
subdivisions (a) and (b) above;
(3) "Incident docket," a docket opened
with the commission upon the initiation of an investigation of an incident;
(4) "Incident report," the report
drafted by an inspector after an incident;
(5) "Inspection," a review of the
books, files, records, reports, supplemental data, other documents and
information, plant, property, and facilities of a pipeline operator to ensure
compliance with applicable pipeline safety standards;
(6) "Inspection report," the report
drafted by an inspector after an inspection of any type, except for an
incident; and
(7) "Pipeline safety program," the
program administered by the commission with regulatory jurisdiction over the
safety standards and practices of all jurisdictional intrastate natural gas and
other gas pipelines within South Dakota.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-19, 49-34B-27.
20:10:37:02. Scope
and application. This chapter sets forth the procedures and standards to be
used for pipeline safety inspections, the enforcement of pipeline safety
standards, and the imposition of civil penalties on pipeline operators for
failing to meet the federal pipeline safety standards adopted by SDCL chapter 49-34B. These rules only apply to those pipelines within the jurisdiction of the commission pursuant to SDCL chapter 49-34B.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-12, 49-34B-19, 49-34B-27.
20:10:37:03 Applicability
of procedural rules. Except as otherwise provided in this chapter, the
commission's procedural rules set forth in chapter 20:10:01 govern proceedings
under this chapter.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-19, 49-34B-27.
20:10:37:04. Inspections.
An inspector shall conduct periodic inspections and spot checks of records and
property in the possession, custody, or control of the pipeline operator to
determine compliance with applicable pipeline safety standards. Inspections may
be conducted pursuant to routine scheduling by the inspector, upon a complaint
received from a member of the public, upon information obtained from a previous
inspection, or when there is a cause to believe that a threat to public safety
may exist.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-7, 49-34B-19, 49-34B-27.
20:10:37:05. Pipeline
operator's obligations. Each pipeline owner, pipeline operator, officer,
employee, and representative shall cooperate with the inspector and the
commission in the administration and enforcement of this chapter and in the
investigation of violations or alleged violations involving pipeline operator
or intrastate pipeline facilities owned or operated by the pipeline operator.
Cooperation includes making available all company books, files, records,
reports, supplemental data, and making readily accessible all company plant,
property, and facilities that the inspector may reasonably require in the
administration and enforcement of this chapter.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-19, 49-34B-27.
20:10:37:06. Inspector's
reporting requirements. Regardless of the inspection type, the inspector
shall complete a post inspection report within 90 days upon completion of the
inspection itself. The report shall include a summary of probable noncompliance
issues if any exist. As applicable, the inspection report may include a
remediation plan wherein specific corrective action and a time frame for
completion shall be stated when probable noncompliance issues exist.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-19, 49-34B-27.
20:10:37:07. Pipeline
operator's receipt of the inspector report. The inspector shall provide a
copy of all inspection report materials to the pipeline operator. The report
shall be provided to an authorized official of the pipeline operator including
an officer, manager, or governing board member if probable violations or
warnings, as defined in § 20:10:37:08, are believed by the inspector to
exist.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-19, 49-34B-27.
20:10:37:08. Probable
non-compliance inspection results. The inspector shall categorize potential
noncompliance in one of the following three categories to be specified in the
inspection report:
(1) A notice of probable violation may be issued
if the inspector has good cause to believe a serious or repeat violation of
applicable pipeline safety standards has occurred. The written notice of
violation shall include a statement of the statute, rule, or regulation
allegedly violated by the pipeline operator and a description of the factual
basis on which the allegation is based. If a civil penalty is proposed, the
report shall state the amount of the proposed civil penalty. A warning in
subdivision (2) may be elevated to a notice of probable violation by the
pipeline safety program manager if warning items are not remedied in a timely
fashion;
(2) A warning may be issued for a probable
violation of a less serious nature or a first time violation. The warning may
include specific corrective actions that must be taken to correct the situation
and the time frame within which such actions shall be completed; and
(3) A notice of concern may be used to inform
the pipeline operator where best industry practices are not being followed but
no direct code violation exists. The notice of concern designation shall be
used for informational purposes only to aid the pipeline operator in managing
as safe and effective pipeline as possible. No pipeline operator action is
required.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-19, 49-34B-27.
20:10:37:09. Pipeline
operator's inspection response. Upon receipt of a written notice of
probable violation or warning, the pipeline operator shall respond to the
inspector within 30 business days in any one of the following ways:
(1) Admit to the probable violation or warning
and agree to the proposed civil penalty or correction action, or both. Any
proposed civil penalty is subject to commission approval;
(2) Respond to the probable violation or warning
and agree to the proposed civil penalty or corrective action, or both. Any
proposed civil penalty is subject to commission approval;
(3) A written dispute of the reported probable
violation or warning at which time the pipeline operator may request a hearing
before the commission if the dispute cannot be resolved with the inspector; or
(4) A written dispute of the proposed civil
penalty or proposed corrective action, or both, at which time the pipeline
operator may request a hearing before the commission.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-7, 49-34B-12, 49-34B-19, 49-34B-27.
20:10:37:10. Pipeline operator's incident reporting requirements. As soon as reasonably possible, but no later than one hour, following confirmed discovery as found in 49 C.F.R. Part 191 (July 1, 2023), of an incident, the pipeline operator shall notify the commission by phone of any incident on the pipeline system owned or operated by the pipeline operator. The notification must include the identity of the pipeline operator, the time and location of the incident, whether there are ascertainable fatalities, personal injuries requiring inpatient hospitalization, or property damage, or both, and any other significant facts and public dangers relevant to the incident. This reporting requirement does not relieve the pipeline operator of the federal reporting requirements as found in 49 C.F.R. Part 191 (July 1, 2023). This reporting requirement requires personal notification to an inspector. The commission must make inspector contact information available on the commission's website.
Source: 36 SDR 57, effective October 19, 2009; 47 SDR 125, effective May 30, 2021; 50 SDR 125, effective May 6, 2024.
General Authority: SDCL 49-34B-4, 49-34B-19.
Law Implemented: SDCL 49-34B-3, 49-34B-4, 49-34B-5 49-34B-7, 49-34B-19, 49-34B-27.
20:10:37:11. Inspector's
incident investigation. Each incident shall be docketed with the commission
by an inspector upon initiation of an investigation. An incident investigation
shall be conducted by an inspector and may include pipeline operator personnel
interviews, the inspection of failed equipment or pipe, the issuance of a
subpoena by the commission for failed equipment or pipe relating to the
incident for independent preservation, ordering of independent laboratory tests
of failed pipe or equipment, viewing related documents, and other reasonable
investigatory measures as needed to complete a comprehensive independent
investigation. The pipeline operator has ten business days to respond to
inspector requests for information. Disputes shall be resolved by the
commission.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-7, 49-34B-19, 49-34B-27.
20:10:37:12. Post-incident
investigation meeting. Upon the conclusion of the inspector's investigation
and all laboratory or other tests and discovery and before the inspector's
filing of a formal incident report, the inspector shall notify the pipeline operator
that the inspector has completed the investigation. The pipeline operator or
the inspector may request a meeting to discuss investigation findings and
incident report contents prior to or following the filing of an incident report
by the inspector.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-7, 49-34B-19, 49-34B-27.
20:10:37:13. Incident
report. After all the information has been gathered and the investigation
is concluded, the inspector shall file an incident report to summarize the
investigation and report on findings. The inspector's report shall be filed
with the commission. An incident docket shall conclude upon the commission's
acceptance or rejection of the inspector's report and determination of what
pipeline violations occurred, if any, what corrective actions shall be
required, if any, and what civil penalties are appropriate, if any.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-7, 49-34B-12, 49-34B-19, 49-34B-27.
20:10:37:14. Pipeline
operator's obligations upon completion of inspector's incident report. Upon
filing of the inspector's incident report with the commission, the pipeline
operator shall respond, in writing, within 30 business days from the pipeline
operator's receipt of the incident report and state whether the pipeline
operator agrees with the report and recommendations or disputes any portion of
the report and recommendations.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-7, 49-34B-12, 49-34B-19, 49-34B-27.
20:10:37:15. Pipeline
operator's failure to reply. A failure to reply to either an inspection
report according to § 20:10:37:09 or an incident report according to
§ 20:10:37:14 shall be considered consent to the report in its entirety.
However. any proposed civil penalty is subject to commission approval.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-7, 49-34B-12, 49-34B-19, 49-34B-27.
20:10:37:16. Request
for hearing. Either the pipeline safety program manager or pipeline
operator may, at any time, request a hearing before the commission to resolve
any issue within the jurisdiction of the commission.
Source: 36 SDR
57, effective October 19, 2009.
General Authority:
SDCL 49-34B-4, 49-34B-19.
Law Implemented:
SDCL 49-34B-3, 49-34B-4, 49-34B-5, 49-34B-7, 49-34B-12, 49-34B-19, 49-34B-27.
20:10:37:17. Change of ownership. Each pipeline operator, upon finalization of an agreement to purchase or sell a jurisdictional gas pipeline facility subject to the provisions of 49 C.F.R. Part 192 (July 1, 2023), must, within thirty business days, submit to the commission's pipeline safety program a written notification of this agreement. This rule does not apply to any transaction made pursuant to SDCL 49-34A-35.
Source: 36 SDR 57, effective October 19, 2009; 47 SDR 125, effective May 30, 2021; 50 SDR 125, effective May 6, 2024.
General Authority: SDCL 49-34B-4, 49-34B-19.
Law Implemented: SDCL 49-34B-3, 49-34B-4, 49-34B-19, 49-34B-27.
20:10:37:18. Notice requirements for transmission line construction. Each transmission pipeline operator within the jurisdiction of the pipeline safety program shall, prior to the construction of a new transmission line, or a relocation or replacement of a transmission line as defined in 49 C.F.R. Part 192 (July 1, 2023):
(1) Submit the information below to the commission's pipeline safety program no later than sixty days prior to the commencement of construction, relocation, or replacement:
(a) Pipeline operator's name and mailing address;
(b) Estimated dates construction is scheduled to begin and end;
(c) Map showing the location and proposed route of pipeline;
(d) Identified gas transmission Integrity Management Program high consequence area, if applicable;
(e) Proposed steel pipeline specifications, including size, weight, grade, wall thickness, and coating;
(f) Proposed plastic pipe specifications, including size and Standard Dimension Ratio;
(g) Proposed design and maximum allowable operating pressure of pipeline;
(h) Pressure test procedures and method of pressure test prior to operations;
(i) Proposed type of cathodic protection;
(j) Minimum burial depths of pipeline at time of construction;
(k) Proposed location and type of pipeline safety equipment;
(l) Proposed type of highway and water crossing, such as whether it will be bored and cased, bored only, or trenched;
(m) Written construction procedures;
(n) Name of construction company if known at the time of filing the Notice; and
(o) Pipeline operator's contact name and phone number;
(2) In the event of an emergency, as defined in the pipeline operator's operations manual, give telephonic notice of emergency construction, relocation, or replacement to the commission's pipeline safety program;
(3) Submit significant construction modifications to the pipeline safety program; and
(4) Submit the information below to the commission's pipeline safety program no later than sixty days prior to the commencement of operation:
(a) Operation and maintenance manual;
(b) Emergency procedures;
(c) Anti-drug and alcohol plan;
(d) Public Awareness plan;
(e) Damage prevention program;
(f) Abnormal operations;
(g) Operator's qualification plan; and
(h) Integrity Management Plan.
Source: 36 SDR 57, effective October 19, 2009; 47 SDR 125, effective May 30, 2021; 50 SDR 125, effective May 6, 2024.
General Authority: SDCL 49-34B-4, 49-34B-19.
Law Implemented: SDCL 49-34B-3, 49-34B-4, 49-34B-8, 49-34B-19, 49-34B-27.
20:10:37:19. Annual report. Each pipeline operator shall submit to the commission a copy of either its United States Department of Transportation Form RSPA F 7100.1-1 or Form RSPA F 7100.2-1, or both. A copy of the report shall be submitted by March fifteenth each year for the preceding calendar year.
This reporting requirement does not relieve the operator of its federal reporting requirements as found in 49 C.F.R. §§ 191.11 and 191.17 (July 1, 2023).
Source: 36 SDR 57, effective October 19, 2009; 47 SDR 125, effective May 30, 2021; 50 SDR 125, effective May 6, 2024.
General Authority: SDCL 49-34B-4, 49-34B-19.
Law Implemented: SDCL 49-34B-3, 49-34B-4, 49-34B-6, 49-34B-7, 49-34B-19, 49-34B-27.
