Background for Regulating the Transportation of Carbon Dioxide in a Gaseous State Pipeline Safety, Regulatory Certainty, And Job Creation Act of 2011, Section 15 February 2015 Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration (PHMSA) U. S. Department of Transportation (DOT) Table of Contents Executive Summary ........................................................................................................................ 1 1.0 Introduction ............................................................................................................................... 4 1.1 Purpose of Study .................................................................................................................. 4 2.0 Background ............................................................................................................................... 4 2.1 History of CO2 Regulatory Actions ..................................................................................... 4 2.1.1 Incorporation of Carbon Dioxide Pipelines into 49 CFR Part 195............................... 4 2.1.2 Regulation of CO2 Transported in a Gaseous State ...................................................... 5 2.2 Physical Properties of CO2 that Affect Regulatory Approach ............................................. 6 2.3 Operational Factors Affecting the Phase in Which CO2 Is Transported .............................. 6 3.0 Current Carbon Dioxide Pipeline Mileage in the U.S. ............................................................. 7 3.1 Pipelines Transporting CO2 in the Supercritical Fluid State ................................................ 7 3.2 Pipelines Transporting CO2 in the Gaseous State ................................................................ 9 4.0 Planned CO2 Pipeline Construction .......................................................................................... 9 5.0 Potential Safety Consequences of Gaseous CO2 Pipeline Accidents ..................................... 12 6.0 Threats and Hazards to Gaseous CO2 Pipelines ..................................................................... 13 6.1 Internal Corrosion .............................................................................................................. 13 6.2 External Corrosion ............................................................................................................. 13 6.3 Excavation Damage............................................................................................................ 13 6.4 Natural Force Damage ....................................................................................................... 13 6.5 Other Outside Force Damage ............................................................................................. 14 6.6 Incorrect Operation ............................................................................................................ 14 6.7 Pipe Material & Weld Failure ............................................................................................ 14 6.8 Equipment Failure .............................................................................................................. 14 6.9 Accident History of CO2 Pipelines Regulated Under Part 195 .......................................... 14 7.0 Candidate Approaches to Regulating Gaseous CO2 Pipelines ............................................... 15 7.1 Regulating Gaseous CO2 Pipelines under Parts 192 and 195 ............................................ 15 7.1.1 §195.2 - Definition of Carbon Dioxide ...................................................................... 16 7.1.2 Compression Equipment............................................................................................. 16 7.1.3 Maintaining Gaseous CO2 in a Gaseous State ............................................................ 16 7.1.4 §195.8 - Transportation of gaseous carbon dioxide in pipelines constructed with other than steel pipe ...................................................................................................................... 17 7.1.5 §195.102(b) - Design temperature .............................................................................. 17 7.1.6 §195.111 - Fracture propagation ................................................................................ 17 7.1.7 Part 195 Subpart E - Pressure Testing ........................................................................ 17 7.1.8 §195.11 - What is a regulated rural gathering line and what requirements apply? .... 17 7.2 Regulating Gaseous CO2 Pipelines under Part 192............................................................ 18 7.2.1 Comparability of Parts 192 and 195 with Respect to Regulating Gaseous CO2 Pipelines............................................................................................................................... 18 7.2.2 Determination of Covered Segment under Part 192, Subpart O (Integrity Management) for Gaseous CO2 Pipelines ........................................................................... 20 7.2.3 Applicability of §192.5 - Class locations ................................................................... 20 7.2.4 §192.8 - How are onshore gathering lines and regulated onshore gathering lines determined? ......................................................................................................................... 21 7.2.5 Maintaining Gaseous CO2 in a Gaseous State ............................................................ 21 8.0 Summary ................................................................................................................................. 21 Appendix A - Known CO2 Pipeline Projects Being Planned or Built ......................................... 24 A.1 Natural CO2 Reservoir Pipeline Projects........................................................................... 24 A.1.1 Kinder Morgan Energy Partners, LP (KMEP) .......................................................... 24 A.1.2 Denbury Resources .................................................................................................... 24 A.1.3 Blackstone Energy Partners ....................................................................................... 25 A.2 Anthropogenic Sources of CO2` ....................................................................................... 25 A.2.1 Southern Company/Denbury Resources .................................................................... 25 A.2.2 SCS Energy................................................................................................................ 25 A.2.3 Texas Clean Energy Project (TCEP) ......................................................................... 25 A.2.4 NRG Energy, Inc. ...................................................................................................... 26 A.3 Carbon Capture Projects Proposed or in Planning ............................................................ 26 Executive Summary Currently, the Pipeline and Hazardous Materials Safety Administration (PHMSA) regulates pipelines transporting carbon dioxide (CO2) in a supercritical fluid state1 under 49 C.F.R. Part 195, but does not regulate pipelines transporting CO2 in a subcritical liquid or gaseous state. The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (hereafter referred to as the Act) mandated that the Secretary of Transportation “prescribe minimum safety standards for the transportation of carbon dioxide by pipeline in a gaseous state.” The Act also mandated that, in establishing those standards, the Secretary consider whether applying the existing minimum safety standards in Part 195 “for the transportation of carbon dioxide in a liquid state to the transportation of carbon dioxide in a gaseous state would ensure safety.” In 2013 Annual Reports, hazardous liquid pipeline operators reported 5,195 miles of supercritical CO2 pipelines. The Interstate Natural Gas Association of America (INGAA) and others have estimated the need to build up to 66,000 miles of CO2 pipelines by 2030.2 This large expansion of CO2 pipeline capacity is driven by two major factors: (1) To reduce the amount of greenhouse gases released to the atmosphere, Carbon Capture and Sequestration (CCS) projects are being constructed or planned. These projects involve the retrofit of equipment to sources of anthropogenic (man-made) CO2 such as coal-fired electric power plants. The equipment would capture CO2 and transport it for use in enhanced oil recovery (EOR) projects or for sequestration in depleted wells, saline aquifers, or abandoned coal mines. (2) The ongoing improvement in oil extraction technology is increasing demand for CO2 for use in EOR oil production. For technical and economic efficiency, PHMSA expects that most CO2 would continue to be transported in the supercritical phase, and thus would be regulated under the existing requirements of Part 195. However, in some cases, technical issues such as the physical characteristics of the sequestration storage reservoir, transportation distance, et cetera, may impact whether the CO2 is transported as a gas or as a subcritical liquid. In such cases, revisions of existing pipeline safety regulations would be needed to implement the statutory mandate, since current regulations do not address the transportation of CO2 in a gaseous or subcritical liquid state. The Act specified that the Secretary of Transportation consider whether applying the existing minimum safety standards in Part 195 “for the transportation of carbon dioxide in a liquid state to the transportation of carbon dioxide in a gaseous state would ensure safety.” As described in 1 Supercritical (liquid) phase has a critical pressure of above approximately 1070 psig (73.8 bar) and critical temperature of 88 ºF (31.1 ºC). Higher operating pressures are required for lower operating temperatures to maintain the liquid phase. 2 Developing a Pipeline Infrastructure for CO2 Capture and Storage: Issues and Challenges, prepared for INGAA Foundation by ICF International, February 2009. Department of Transportation 1 Pipeline and Hazardous Materials Safety Administration this preliminary evaluation, the application of the minimum safety standards that apply to hazardous liquid pipelines in Part 195 gaseous state would likely ensure safety of gaseous CO2 pipelines, because many of the requirements applicable to supercritical CO2 pipelines in Part 195 would also be applicable to the transport of CO2 in a gaseous state. Since the transportation of gases is subject to Part 192, an amendment to Part 192 would be needed to accommodate the regulation of the transportation of CO2 by pipelines in a gaseous state even if the requirements would be referenced within or very similar to those for supercritical liquid pipelines under Part 195. However, some of the regulations in Part 195 applicable to supercritical CO2 would need to be modified to be applicable to the transport of gaseous CO2. Summary of the Evaluation of the Applicability of the Minimum Safety Standards of Part 195 to the Safe Transport of CO2 in a Gaseous State In direct response to the statutory mandate, this is a preliminary evaluation of whether existing minimum safety standards in Part 195 for the transportation of carbon dioxide in a supercritical fluid state would ensure safety in the transportation of carbon dioxide in a gaseous state. In order to implement this mandate, PHMSA has identified certain specific technical aspects of Part 195 that require further evaluation and possible revisions to Part 192 to accommodate the regulation of gaseous CO2 pipelines. Some changes to Part 192 could be as simple as a cross reference to those requirements of Part 195 that are also applicable to the transport of gaseous CO2 without the need for revision or with minor revisions. Re-define Carbon Dioxide: PHMSA would determine if CO2 pipelines in any state (gas, subcritical liquid, as well as supercritical fluid) would be regulated, or if only gaseous and supercritical CO2 pipelines would be regulated. Currently the definition of carbon dioxide in Part 195 only applies to the transport of CO2 in the supercritical fluid state. Address Compressor Stations: The current regulations in Part 195 are based on the transportation of fluids in the supercritical fluid state. The requirements address pumps, pump stations, etc., but do not address compressors, compressor stations, etc. This may require that applicable sections of Part 192 be modified to allow for the transport of CO2 in a gaseous state. Operational Controls to Maintain Gas Phase Operation: PHMSA may need to evaluate the need to prescribe additional controls on operational parameters such as temperature and pressure for this purpose. There is an interface pressure as a function of temperature below which CO2 can be maintained in a gaseous state. Non-steel Pipe: PHMSA may need to evaluate the applicability of non-steel pipeline materials to gaseous CO2 pipelines, taking into account that pre-existing gaseous CO2 pipelines might have been built using plastic pipe or other materials besides steel. Design Temperature: Part 195 contains a specific requirement that applies only to supercritical fluid CO2 pipelines, due to the physical properties of supercritical fluid CO2. Department of Transportation 2 Pipeline and Hazardous Materials Safety Administration Design temperature requirements for the transport of gaseous CO2 may need to be added to Part 192. Fracture Propagation: Part 195 contains a specific requirement that addresses fracture propagation for supercritical carbon dioxide pipelines. The potential for fracture propagation of gaseous CO2 pipelines needs to be evaluated. Pressure Testing: The current requirements in Part 195, since 1991, allow certain supercritical CO2 pipelines to operate without a pressure test in accordance with Subpart E, if they were constructed before becoming regulated under Part 195. Subpart E also contains criteria for the use of CO2 as the test medium. Pressure testing requirements of gaseous CO2 pipelines under Part 192 Subpart J would need to be evaluated. CO2 Gathering Lines: Pipelines that gather CO2 from natural sources might meet the definition of a gas gathering line. Integrity Management: CO2 is a non-flammable gas. Under Subpart O, Part 192, covered segments are determined using the CFER PIR equation. The PIR equation is applicable to flammable gases only. If gaseous CO2 is kept completely within Subpart O an alternative method for determining the impact of CO2 on an HCA will have to be devised. The methods for determining a “could affect an HCA” segment in 195.452 includes air dispersion. This is used to determine the impact of HVLs and supercritical fluid CO2, which become gasses at atmospheric pressure. This is the method applicable to a release of gaseous CO2. Summary of Evaluation with Respect to Regulating Gaseous CO2 Pipelines under Part 192 Some requirements in Part 192 might require adjustments or modifications to accommodate the regulation of gaseous CO2 pipelines. Those items are discussed below, but are not necessarily an exhaustive list of topics that might need to be evaluated. Specific Technical Differences between Parts 195 and 192 with respect to carbon dioxide pipelines: These include, but are not necessarily limited to design temperature, fracture propagation, component materials, pressure test medium, and line marker exceptions; Design, Construction, Operations, and Maintenance Requirements; Determination of Covered Segments under Integrity Management; Class locations; Gathering lines; Operational Controls to Maintain Gas Phase Operation. Department of Transportation 3 Pipeline and Hazardous Materials Safety Administration 1.0 Introduction 1.1 Purpose of Study The purpose of this report is to evaluate existing and potential future gaseous carbon dioxide (CO2) pipelines and outline an approach for establishing minimum pipeline safety standards for the transportation of carbon dioxide in a gaseous state (specifically with respect to the adequacy of existing regulations in Part 195) in order to fulfill the requirements of the Act,3 Section 15, Carbon Dioxide Pipelines. Section 15, Carbon Dioxide Pipelines, of the Act mandated that the Secretary of Transportation “prescribe minimum safety standards for the transportation of carbon dioxide by pipeline in a gaseous state.” In addition, the Act mandated that in establishing those standards, the Secretary consider whether applying the existing minimum safety standards in Part 195 “for the transportation of carbon dioxide in a liquid state to the transportation of carbon dioxide in a gaseous state would ensure safety.” Further, the Act prescribed that it did not authorize the Secretary to “regulate piping or equipment used in the production, extraction, recovery, lifting, stabilization, separation, or treatment of carbon dioxide or the preparation of carbon dioxide for transportation by pipeline at production, refining, or manufacturing facilities.” 2.0 Background 2.1 History of CO2 Regulatory Actions 2.1.1 Incorporation of Carbon Dioxide Pipelines into 49 CFR Part 195 Federal regulations in the original 49 CFR Part 1954 prescribed safety standards and reporting requirements for pipeline facilities used in the transportation of hazardous liquids, which were defined to include petroleum, petroleum products, and anhydrous ammonia. In the mid-1980s, Congress addressed the need to regulate CO2 pipelines. The report on the Pipeline Safety Reauthorization Act of 1988 from the House Committee on Energy and Commerce in the 1987 session of the 100th Congress pointed out that: 3 4 “The Committee has for some time recommended the safety regulation and inspection of CO2 pipelines.” “The CO2 pipeline industry has a good safety record and performs an essential service for enhanced oil recovery, but it is a very new industry. It is not a question of its safety record that caused the requirement for safety regulation, but rather the unique potential for disaster if there were ever a break in a CO2 pipeline.” Public Law 112-90, January 3, 2012 69 FR 11911, October 3, 1969 Department of Transportation 4 Pipeline and Hazardous Materials Safety Administration “An event demonstrated just how lethal CO2 can be. On August 21, 1986, a catastrophic release of gas dissolved in Lake Nyos in Cameroon, Africa, killed 1,700 people. At the time, the news media characterized the gas as “toxic,” “poisonous” and “lethal.” Subsequent investigation proved the gas was carbon dioxide.” “The Committee believes that since CO2 is deadly, CO2 pipelines should have appropriate Federal safety regulations (H.R. Rep. No. 100-445; 100th Congress; 1st Session (1987)).” Consequently, Section 211 of the Pipeline Safety Reauthorization Act of 1988 required that the Department of Transportation (DOT) regulate the transportation of carbon dioxide (CO2) by pipeline facilities. On March 16, 1989, the American Petroleum Institute (API) petitioned the Department to amend Part 195 to regulate pipelines that transport CO2. The recommendations contained in the petition were the product of a task force consisting of representatives of nine companies that owned or operated supercritical fluid (i.e., liquid) CO2 pipelines. Because of the technical and operating similarities between supercritical fluid CO2 and other hazardous liquids transported in pipelines, the API recommended that the Research and Special Projects Administration (RSPA) of DOT (the predecessor of PHMSA) amend existing Part 195 rather than write a new part for CO2 pipelines only. The RSPA adopted that approach. On October 12, 1989, the RSPA published a Notice of Proposed Rulemaking (NPRM)5 proposing to amend 49 CFR 195 to also apply to the transportation of supercritical fluid CO2. The Final Rule was published on June 11, 1991,6 with an effective date of July 12, 1992. 2.1.2 Regulation of CO2 Transported in a Gaseous State By definition, none of the pipeline safety regulations in Chapter 49, Part 195, of the Code of Federal Regulations cover pipelines that transport CO2 in the gaseous or subcritical liquid state. Prior to the Act, PHMSA maintained that it did not have the authority to regulate pipelines transporting gaseous CO2. On November 26, 2010, PHMSA published the Final Rule for the “Updates to Pipeline and Liquefied Natural Gas Reporting Requirements.”7 NAPSR provided this comment on the final rule: “NAPSR would add CO2 to the list of commodities given that transport of CO2 as a gas is likely to become more prevalent with forthcoming carbon sequestration projects.” PHMSA’s response was: “PHMSA recognizes that carbon sequestration projects are likely to result in the transport of carbon dioxide in gaseous form. At present, however, PHMSA does not have jurisdiction to regulate transportation of carbon dioxide as a gas. Legislative change would be required to establish jurisdiction; therefore, PHMSA cannot accept NAPSR's suggestion to add CO2 as a gas to the list of commodities transported.” 5 54 FR 41912 56 FR 26922 7 Admt. 192-115, 75 FR 72877 6 Department of Transportation 5 Pipeline and Hazardous Materials Safety Administration That legislative change came as a result of the Act, Section 15, which mandated that the Secretary of Transportation “shall prescribe minimum safety standards for the transportation of carbon dioxide by pipeline in a gaseous state.” 2.2 Physical Properties of CO2 that Affect Regulatory Approach At standard temperature and pressure, CO2 is an odorless, colorless, non-flammable gas, with a density 1.5 times the density of air. It will not support combustion nor will it sustain human life if inhaled. Because it is heavier than air, it displaces oxygen and can result in asphyxiation when concentrated at levels above approximately 7 percent in the atmosphere. Carbon dioxide may exist simultaneously as a gas, liquid, and solid at its triple point, which is -57 °C (-69 °F) and 5.2 atm. (60.43 psig). Below the triple point, it may be either a solid or gas depending on temperature and pressure. Above the triple point, but below the critical point, CO2 can exist as either a gas or a liquid. When pressure reaches the critical point, above a pressure of 73 atmospheres (1070 psig) and a temperature of 31 °C (88 °F), CO2 enters what is called the supercritical fluid state (also referred to as a dense vapor phase). This is shown in the red area of the CO2 phase diagram below. Figure 1: CO2 phase diagram8 2.3 Operational Factors Affecting the Phase in Which CO2 Is Transported “Pipeline transportation of CO2 in the supercritical phase is more desirable than transportation in the gaseous phase. As a dense vapor in the supercritical phase, CO2 can be transported more economically and efficiently using smaller diameter pipelines (and pumps) because greater volumes of fluid can be transported as a dense vapor than as a gas. In addition, CO2 would be 8 http://www.appliedseparations.com/supercritical-co2 Department of Transportation 6 Pipeline and Hazardous Materials Safety Administration difficult to transport as a gas because it would enter into two-phase flow at a lower pressure than that required for the efficient pipeline transportation of the CO2.”9 As a result, CO2 is normally transported in the supercritical phase. To maintain the product in its supercritical phase, it is transported at pressures that range from 1,500 to 3,000 psi.10 CO2 can be either a subcritical liquid or a gas between 5.2 atm. and -57 °C (76 psi and -69 °F), the triple point, and 73 atm. and 31 °C (1070 psi and 88 °F), the critical point. Maintaining the pressure above or below the interface pressure will determine its state (see Figure 1). The transportation of CO2 in a gaseous state would be similar to the transportation of natural gas. Pressures must be maintained below the interface pressure at which the CO2 would become two phase. Compressors would be used to transport the CO2 in the gaseous state. Wall thicknesses, steel strengths, and transportation costs would be comparable to pipelines used in the transportation of natural gas. However, transporting large volumes of CO2 as a gas would require larger diameter pipelines, which would increase costs. A study performed in 197411 compared the cost of construction of the Canyon Reef CO2 pipeline as a low pressure gas pipeline or as a dense vapor (supercritical) pipeline. The construction costs of a dense vapor pipeline were 20 percent less than the low pressure gas pipeline. For both of these reasons, PHMSA believes that most future CO2 pipelines constructed for EOR or CCS would transport the gas in the supercritical fluid state and would be regulated under existing requirements of Part 195. However, in some cases, gaseous state CO2 pipelines may be the selected technology (see section 4.0). Because the properties of gaseous state CO2 that affect pipeline operation are similar to natural gas (other than it is not flammable or explosive), the design, construction, operation, and maintenance of a gaseous state CO2 pipeline would be very similar to a natural gas pipeline. 3.0 Current Carbon Dioxide Pipeline Mileage in the U.S. 3.1 Pipelines Transporting CO2 in the Supercritical Fluid State 9 Miscible Gas Injection, Facts about Miscible Displacement, MK Tech Solutions, http://www.mktechsolutions.com/Miscble%20Gas.htm 10 PHMSA Presentation, Carbon Dioxide Pipelines, Senate Energy and Natural Resources Committee Briefing, May, 2011. 11 There are three phases to recovering oil from a well. The primary phase uses the natural pressure in the well to extract the oil. The secondary phase uses a process called water flood to pressurize the well and extract additional oil. The tertiary phase uses CO2 to extract additional oil from the well. This process is known as enhanced oil recovery (EOR). There is an estimated 84.8 billion barrels of oil in existing US oilfields that potentially could be recovered using state-of-the-art CO2 enhanced oil recovery. As technology improves, additional amounts of the remaining oil may be recoverable. Transport of CO2, IIPC Working Group III, http://www.ipcc-wg3.de/special-reports/.files-images/SRCCSChapter4.pdf Department of Transportation 7 Pipeline and Hazardous Materials Safety Administration There are currently 5,195 miles12 of dedicated CO2 pipelines regulated by PHMSA in the U.S., all serving enhanced oil recovery (EOR) projects and transporting supercritical CO2. Eighty percent of the existing CO2 pipeline infrastructure (by mileage) was built to deliver CO2 into and within the Permian Basin of West Texas for the purpose of EOR. The earliest pipelines were built in the 1970s in Texas, where the first CO2 floods13 were initiated. The original CO2 floods were in a gaseous state,14 but were converted to supercritical fluid state. Other regions with some significant CO2 pipeline infrastructure include Wyoming/Colorado, New Mexico, Mississippi/Louisiana/Texas, Oklahoma, and North Dakota. The largest of the existing CO2 pipelines is the 30-inch Cortez Pipeline, which was completed in 1983 and runs for more than 500 miles from the McElmo Dome in Southwestern Colorado to the EOR fields in West Texas.15 The following table provides mileages for those states that have supercritical CO2 pipelines regulated under Part 195. Table 1: Supercritical CO2 Pipelines Regulated Under Part 19516 State Mileage Alabama 11 Colorado 242 Kansas 29 Louisiana 315 Mississippi 503 Montana 9 New Mexico 986 North Dakota 167 Oklahoma 304 Texas 1,882 Utah 89 Wyoming 658 Table 2 shows the CO2 mileage reported by operators in Annual Reports by year from 2004 to 2013. As can be seen, almost 2,000 miles have been constructed since 2004, all being used for enhanced oil recovery. Table 2: Supercritical CO2 Pipelines Regulated Under Part 195 by Year17 Year Liquid CO2 Mileage 12 http://phmsa.dot.gov/pipeline/library/data-stats A CO2 flood refers to injecting CO2 into depleted oil wells at pressures above the critical pressure of 1070 psi to recover oil that cannot be recovered using the wells natural pressure or water floods. 14 Developing a Pipeline Infrastructure for CO2 Capture and Storage: Issues and Challenges, ICF International, February, 2009 15 Comparing Existing Pipeline Networks with the Potential Scale of Future U.S. CO 2 Pipeline Networks, JJ Dooley, RT Dahowski, CL Davidson, Pacific Northwest National Laboratory, February 2008 16 2013 Hazardous Liquid Annual Report 17 http://phmsa.dot.gov/resources/data-stats 13 Department of Transportation 8 Pipeline and Hazardous Materials Safety Administration 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 3,221 3,846 3,827 3,884 4,203 4,192 4,560 4,735 4,840 5,195 Figure 2 shows the location of supercritical CO2 pipelines (as of 2009). Figure 2: Liquid CO2 Pipelines in the U.S. Subject to Part 19518,19 3.2 Pipelines Transporting CO2 in the Gaseous State Although there is information available on pipelines transporting CO2 in the supercritical fluid state, little information exists on CO2 being transported by pipeline in the gaseous state. PHMSA is aware of only one 78-mile pipeline that transports low pressure gaseous CO2 in a gas gathering field. 4.0 Planned CO2 Pipeline Construction A major reason for the Congressional mandate for DOT to regulate gaseous CO2 pipelines is that recent technological breakthroughs and regulatory developments would require more pipelines. Specifically, the development and improvement of enhanced oil recovery (EOR) technology is creating a demand for more CO2 pipelines to deliver CO2 to oilfields. Also, the initiatives to 18 Ibid. 14, p. 5 Additional CO2 pipelines have been constructed since 2009 and are not represented on this map. For example, the Louisiana terminus to Houston, TX expansion of the Green Pipeline by Denbury, a 314 mile expansion, began construction in 2009 and is not shown on the map. (if able, move to previous page) 19 Department of Transportation 9 Pipeline and Hazardous Materials Safety Administration reduce greenhouse gas (GHG) emissions is creating demand for carbon capture and sequestration (CCS) projects,20 which require a means to transport captured carbon dioxide to long term storage or locations where it can be utilized (such as EOR projects). As a result, projections are estimating that the CO2 pipeline infrastructure will need to be expanded by up to an order of magnitude (or more). A study funded by INGAA21 has projected the need to construct 15,000 to 66,000 miles of new CO2 pipelines by 2030 to connect anthropogenic (man-made) sources of CO2 with storage wells and reservoirs. Another study performed by Pacific Northwest National Laboratory (PNNL) 22 estimates that 30,000 new CO2 pipeline miles will need to be constructed for CCS projects. Some of this CO2 will be used for enhanced oil recovery, some will be stored in depleted reservoirs (from which no further enhance oil recovery is possible), and some will be stored in saline aquifers and abandoned coal mines. However, the studies did not specifically address the state in which the CO2 would be transported (gaseous or supercritical). One report concluded that “[A]lthough any widespread CCS scheme in the United States would likely require dedicated CO2 pipelines, there is considerable uncertainty about the size and configuration of the pipeline network required. This uncertainty stems, in part, from uncertainty about the suitability of geological formations to sequester captured CO2 and the proximity of suitable formations to specific sources. One analysis concludes that 77% of the total annual CO2 captured from the major North American sources may be stored in reservoirs directly underlying these sources, and that an additional 18% may be stored within 100 miles of additional sources.”23 While it is more efficient to transport CO2 in a supercritical fluid state, it may be more economical, under some circumstances, to transport it for short distances in a gaseous state. Some studies have indicated that the CO2 from anthropogenic sources may only have to be transported for short distances. The disadvantage of transporting in a gaseous state is that to use CO2 for EOR requires the minimum miscible pressure to be above the critical pressure of 1070 psig at a temperature of 88 °F. For transport to saline aquifers, minimum miscible pressure is not a factor; however, to ensure maximum sequestration in a saline aquifer, high injection pressures will be required. These pressures will, most likely, have to be above the minimum miscible 20 The first step in direct sequestration is to produce a concentrated stream of CO 2 for transport and storage. Currently, three main approaches are available to capture CO2 from large-scale industrial facilities or power plants: • Pre-combustion, which separates CO2 from fuels by combining them with air and/or steam to produce hydrogen for combustion and CO2 for storage, • Post-combustion, which extracts CO2 from flue gases following combustion of fossil fuels or biomass, and • Ox fuel combustion, which uses oxygen instead of air for combustion, producing flue gases that consist mostly of CO2 and water from which the CO2 is separated. These approaches vary in terms of process technology and maturity, but all yield a stream of extracted CO 2 which may then be compressed to increase its density and make it easier (and cheaper) to transport. Although technologies to separate and compress CO2 are commercially available, they have not been applied to large-scale CO2 capture from power plants for the purpose of long-term storage. 21 Ibid. 14, p. 5 22 Comparing Existing Pipeline Networks with the Potential Scale of Future U.S. CO 2 Pipeline Networks, JJ Dooley, RT Dahowski, CL Davidson, Pacific Northwest National Laboratory, February 2008 23 Carbon Dioxide (CO2) Pipelines for Carbon Sequestration: Emerging Policy Issues, Paul Parfomak, Peter Folger, Adam Vann, July 2009 Department of Transportation 10 Pipeline and Hazardous Materials Safety Administration pressure of 1070 psig. There could be other factors where high pressure storage of CO2 is not feasible due to the sub-surface rock characteristics of a particular storage reservoir. Figure 3 shows the location of coal fired power plants, a major contributor of CO2 to GHG emission, in relation to potential storage reservoirs. As can be seen, there are many saline aquifers near these power plants, so a deciding factor in the amount of new CO2 pipeline to be constructed will be whether it will be sequestered in saline aquifers or used in enhanced oil recovery. If sequestration is the option for a large portion of the collected CO2, less pipeline mileage will need to be constructed than if enhanced oil recovery is the option, due to the close proximity of the aquifers to these major sources of CO2. However, the shorter the pipeline, the more likely it would be that a gaseous state pipeline would be chosen. Appendix A lists some planned CO2 pipeline projects obtained from publicly available sources. (Note: this list represents a snapshot in time when this report was developed and some projects may have been canceled while other projects may have been planned.) Some are known to be planned to operate in the supercritical fluid state, but the state of operation for most of those projects is not available. Figure 3: Locations of Storage Reservoirs in Relation to Coal-Fired Power Plants24 24 Ibid. 14, p. 5 Department of Transportation 11 Pipeline and Hazardous Materials Safety Administration 5.0 Potential Safety Consequences of Gaseous CO2 Pipeline Accidents The most likely safety consequence of a CO2 pipeline accident is asphyxiation, when CO2 is breathed by humans or animals. Since January 1, 2002, through August 1, 2014, there have been 5525 accidents involving supercritical fluid CO2 pipelines reported to the Pipeline and Hazardous Material Safety Administration (PHMSA). There have been no reported fatalities and one injury as a result of these accidents. The nature of the injury was not specified; however, the injured party was a contractor working on the pipeline and the cause of the release was excavation damage. Carbon dioxide is heavier than air and therefore hugs the ground and could be a potential asphyxiant when released from a pipeline, endangering the public, workers, and emergency responders. Because it transitions rapidly into a gaseous form when released from a supercritical fluid pipeline, it dissipates quickly into the atmosphere. Only accidents involving supercritical fluid CO2 and meeting the PHMSA reporting requirements are in the PHMSA accident database. Since CO2 transported in the gaseous state is not regulated, incidents that occur do not have to be reported to PHMSA unless the operator voluntarily reports them. These incidents may, however, be subject to National Reporting Center (NRC) reporting requirements. The risk of a release of gaseous state CO2 versus CO2 in the supercritical fluid state are similar. The analysis of the asphyxiation hazard that would result from a gaseous CO2 release is similar to the analysis of the release of highly volatile liquids and supercritical CO2. Similar techniques are used to predict the size, direction, and concentration of the gaseous cloud that results from a postulated release. The difference would be in the amount released. In the supercritical fluid state the liquid to gaseous conversion and expansion would result in a greater mass of CO2 release, as compared to a release of pure CO2 gas. As far as public and worker health is concerned, “…it is believed that nearly all workers may be repeatedly exposed day after day without adverse effects [to CO2 levels] of 5000 ppm.”26 The Center for Disease Control has established Immediate Danger to Life and Health (IDHL) levels at 70,000 to 100,000 ppm in air. A model of the release of supercritical fluid CO2 from a 6-inch pipeline at 2300 psig showed that a concentration of 40,000 ppm was reached at 2,151 ft. from the release location.27 Higher concentrations would be seen closer to the release location as the gas cloud expands and dissipates. Currently most CO2 pipelines are located in sparsely populated areas, but that may change as CCS projects come into operation. One known exception is the Denbury Resource Green CO2 pipeline, which runs through the high population areas of Beaumont and Houston, Texas. As CCS projects come on-line, which may be in populated areas, potential releases could represent an increase in risk of injuries and/or fatalities. 25 2002 through 2013 Hazardous Liquid Accident Reports Eric J. Beckman, Supercritical and near-critical CO2 in green chemical synthesis and processing, Journal of Supercritical Fluids, Volume 28, 2004 27 CFD Modelling of Gas Dispersion from a Ruptured Supercritical CO2 Pipeline, http://www.cham.co.uk/casestudies/CCS_Gas_Dispersion.pdf 26 Department of Transportation 12 Pipeline and Hazardous Materials Safety Administration Other possible hazards from a CO2 pipeline accident could be physical injury to workers or persons in close proximity to the accident caused by pipe movement, flying debris, or jet impingement of escaping gas from a relatively small through-wall flaw. A release of supercritical CO2 or gaseous CO2 dissipates quickly into the atmosphere, but because it is non-flammable there is no environmental impact in the area of the release. However, CO2 is the leading source of Greenhouse Gas releases from human activities and its concentration in the atmosphere has been linked to global warming. 6.0 Threats and Hazards to Gaseous CO2 Pipelines CO2 pipelines – whether supercritical or gaseous – are susceptible to the same threats as are natural gas and hazardous liquid pipelines. These threats are: 6.1 Internal Corrosion Internal corrosion failures occur when the interior pipe wall thins to the point where it can no longer resist the internal pressure of the pipeline. The higher the operating pressure in the pipeline, the less wall thinning must occur before the pipe will fail. CO2 pipelines currently restrict the chemical composition of fluids they transport. The most important limit is the amount of water (which is an electrolyte) that corrodes standard carbon steel. Naturally occurring CO2 can contain other elements such as water and methane. The majority of these elements are removed prior to transporting the CO2 by pipeline. CO2 mixed with any impurities such as water or hydrogen sulfide can be an internal corrosion accelerant. 6.2 External Corrosion External corrosion failures occur when the exterior pipe wall thins to the point where it can no longer resist the internal pressure of the pipeline. The higher the operating pressure in the pipeline, the less wall thinning must occur before the pipe will fail. Steel pipelines are typically protected from external corrosion by cathodic protection systems and coatings. The pressures at which gaseous CO2 will be transported will be similar to the pressures at which natural gas is transported. The wall thickness, pipe material, coating type, and cathodic protection of the pipe will be similar to those of natural gas pipelines. 6.3 Excavation Damage Excavation damage typically occurs when construction is taking place in the vicinity of the pipeline. All buried pipelines are susceptible to excavation damage. Carbon dioxide pipelines are located in remote areas so the likelihood of a release due to excavation damage is lower than for natural gas or hazardous liquid pipelines. This may change as CSS projects come on-line and pipelines are routed through populated areas. 6.4 Natural Force Damage Department of Transportation 13 Pipeline and Hazardous Materials Safety Administration Natural force damage occurs as a result of hurricanes, floods, tornadoes, lightning strikes, earth movement, or seismic events. Pipelines that are above ground are susceptible to all of the above threats. Buried pipelines are susceptible to earth movement, lightning strikes, flooding, scouring, or washout where pipelines cross water bodies, and seismic events. 6.5 Other Outside Force Damage Other outside force damage occurs as a result of external events or circumstances such as fires or explosions external to the pipeline, damage from vehicles, anchor drag, dredging, electrical arcing or accelerated corrosion from nearby sources such as high voltage power lines, and residual damage not caused by excavation such as rocks in contact with the pipeline. 6.6 Incorrect Operation Failure due to incorrect operation occurs as a result of valve misalignment, overpressure events, equipment incorrectly installed, or the wrong component having been installed. 6.7 Pipe Material & Weld Failure Pipe material and weld failures occur as a result of poor welds made in the field, such as girth welds, but may also be inherent in the manufacturing process, such as long seam welds with a joint factor less than 1.0, hook cracks, and laminations in the pipe steel. Environmental cracking, such as stress corrosion cracking, is also reported as a pipe material failure. 6.8 Equipment Failure Equipment failures such as (but not limited to) compressor or pump malfunctions, connection failures such as sensor lines, loose connections, or malfunction of pressure control/relief equipment could cause an incident. 6.9 Accident History of CO2 Pipelines Regulated Under Part 195 Table 3 provides a summary of the number of reportable accidents, by cause, that have occurred on pipelines transporting CO2 in a supercritical phase and regulated under Part 195 during the period from 2002 through August 1, 2014. Cause # of Acc. Table 3: Number of Reportable CO2 Pipeline Accidents, by Cause (2002-August 1, 2014) Internal External Excavation Natural Other Incorrect Mat’l or Eqpt. Corrosion Corrosion Damage Force Outside Operation Weld Failure Force Failure 0 3 Department of Transportation 2 0 14 0 2 17 23 Pipeline and Hazardous Materials Safety Administration Unknown 8 7.0 Candidate Approaches to Regulating Gaseous CO2 Pipelines The Act specified that the Secretary of Transportation consider whether applying the existing minimum safety standards in Part 195 “for the transportation of carbon dioxide in a liquid state to the transportation of carbon dioxide in a gaseous state would ensure safety.” After evaluation, PHMSA believes that the application of existing minimum safety standards in Part 195 for the transportation of carbon dioxide in a supercritical fluid state to the transportation of carbon dioxide in a gaseous state would ensure safety. However, because of specific technical aspects and the existing regulatory construct, some revisions to the pipeline safety regulations would be needed to accommodate the regulation of the transportation of CO2 by pipelines in a gaseous state. PHMSA is considering two candidate approaches to regulating gaseous CO2 pipelines: 1. Expanding the scope of Part 192 to include gaseous CO2 pipelines; however, wherever possible cross referencing Part 192 to the applicable Part 195 regulations where no revisions or minor revisions are required. 2. Expanding the scope of Part 192 to include gaseous CO2 pipelines. In either case, specific revisions to Part 192 would be needed to specific regulatory requirements to accommodate the inclusion of gaseous CO2 pipelines. 7.1 Regulating Gaseous CO2 Pipelines under Parts 192 and 195 The Act specified that the Secretary of Transportation consider whether applying the existing minimum safety standards in Part 195 “for the transportation of carbon dioxide in a liquid state to the transportation of carbon dioxide in a gaseous state would ensure safety.” The implication of this mandate is to evaluate if the regulations applicable to the transport of supercritical fluid CO2 under Part 195 can also be applied to the safe transport of CO2 in a gaseous state. The basic regulatory requirements (design, construction, operations, and maintenance) to ensure the safe transportation of CO2 by pipeline are already in place in Part 195. These can either be revised as necessary and incorporated into Part 192 or, in some cases, simply be referenced to Part 195 from Part 192 where no revisions or minor revisions are necessary to make the Part 195 regulation applicable to the transport of gaseous CO2. In order to implement the regulation of gaseous CO2 pipelines in Part 192, some code language and requirements would need to be revised. In addition, other requirements might need further evaluation to ascertain if revisions would be needed. PHMSA has performed a preliminary evaluation of the Part 195 regulations and identified those that would or might need to be revised to be applicable to the transport of gaseous CO2. These items are discussed below. These issues are not necessarily an exhaustive list of topics that might need to be evaluated as a result of covering gaseous CO2 pipelines under Part 195. A detailed technical evaluation of all Part 195 regulations would be conducted as part of any formal rulemaking proceeding. Department of Transportation 15 Pipeline and Hazardous Materials Safety Administration 7.1.1 §195.2 - Definition of Carbon Dioxide The current definition of carbon dioxide as used in Part 195 is that carbon dioxide is a fluid in the supercritical state. The definition of carbon dioxide could be changed to eliminate reference to the physical state of the carbon dioxide. Such an approach would include gaseous CO2 as well as subcritical liquid CO2, along with supercritical CO2. If the intent is to regulate only CO2 in the supercritical state, or the gaseous state, but not in the subcritical liquid state, then separate definitions of supercritical and gaseous carbon dioxide would need to be included. In addition, everywhere the term “carbon dioxide” is used in Part 195 (e.g., §§195.116, .401, .402, .403), the meaning presumes supercritical CO2. An evaluation would be needed to determine if those uses of the term in Part 195 are general (such that they would apply appropriately to gaseous CO2 pipelines) or specific to supercritical CO2 (such that adjustments to the regulatory language would be needed to accommodate the change in definition). 7.1.2 Compression Equipment The current regulations in Part 195 are based on the transportation of fluids in the liquid state. The definitions (e.g., component, line section, pipeline system, surge pressure) and requirements (e.g., design, construction, operations, maintenance) address pumps, pump stations, et cetera, but do not address compressors, compressor stations, et cetera. While compressors in a gas pipeline system serve the same functional purpose as pumps in a liquid pipeline system, technical differences in the two systems would need to be evaluated and addressed in the appropriate Part of the CFR. 7.1.3 Maintaining Gaseous CO2 in a Gaseous State The maximum operating pressure (MOP) specified in Part 195 is based exclusively on not overstressing the pipe to assure pipeline integrity. In the case of gaseous CO2, there are safety considerations that might require operational controls on pipelines transporting CO2 in the gaseous state in order to maintain the CO2 in a gaseous state (i.e., it would be important to preclude the CO2 from changing to subcritical liquid state or the supercritical state during transportation operations). To maintain CO2 in a gaseous state, the pressure needs to be kept below the interface pressure at which gaseous CO2 is compressed into a liquid (for the operating temperature). Refer to Figure 1. To do this, the operator would need to take into account topography, environmental conditions, and temperature extremes (both operational and environmental).28 Therefore, PHMSA may need to evaluate the need to prescribe additional controls on operational parameters, such as temperature and pressure, for this purpose. Such pressure controls might require that pressures be maintained below the MOP that would have been determined under 28 For example, the design of an early CO2 pipeline in 1970, the Canyon Reef pipeline, considered two concepts. One would control the pressure in the pipeline low enough to maintain the CO2 in a gaseous phase. The second would control the pressure high enough to maintain the CO2 as a dense vapor. In that case, the design to keep the CO2 as a gas would have maintained the operating pressure less than 696 psi. Department of Transportation 16 Pipeline and Hazardous Materials Safety Administration existing Part 195 requirements. This issue applies to regulating gaseous CO2 pipelines under Part 192 also (see 7.2.5). 7.1.4 §195.8 - Transportation of gaseous carbon dioxide in pipelines constructed with other than steel pipe The current requirements in Part 195, since 1991, preclude the transportation of supercritical CO2 in pipelines made of material other than steel (unless the operator notifies PHMSA and PHMSA does not object). PHMSA may need to evaluate the applicability of this requirement to gaseous CO2 pipelines, taking into account that existing (and previously unregulated) gaseous CO2 pipelines might have been built using plastic pipe or other materials besides steel. If such practices were widespread (determination of such was outside the scope of this report), then PHMSA may need to include language to grandfather, exempt, or otherwise address this requirement for pre-existing non-steel pipe used to transport gaseous CO2. 7.1.5 §195.102(b) - Design temperature Part 195 contains a specific requirement that applies only to supercritical CO2 pipelines, due to the physical properties of supercritical CO2. “Components of carbon dioxide pipelines that are subject to low temperatures during normal operation because of rapid pressure reduction or during the initial fill of the line must be made of materials that are suitable for those low temperatures.” PHMSA would need to address if this requirement should apply to pipelines transporting gaseous CO2. 7.1.6 §195.111 - Fracture propagation Part 195 contains a specific requirement that applies only to supercritical CO2 pipelines due to the physical properties of supercritical CO2. “A carbon dioxide pipeline system must be designed to mitigate the effects of fracture propagation.” Fracture propagation is also a concern for gas pipelines because they operate with a highly compressed gas, which would also be the case for a gaseous CO2 pipeline. It is presumed that this requirement would also apply to a gaseous CO2 pipeline, but additional evaluation may be needed to ascertain if the existing language in §195.111 is sufficient and appropriate for a gaseous CO2 pipeline. 7.1.7 Part 195 Subpart E - Pressure Testing The current requirements in Part 195, since 1991, allow certain supercritical CO2 pipelines to operate without having had a pressure test in accordance with Subpart E, if they were constructed before CO2 pipelines became subject to Part 195. PHMSA may need to evaluate the applicability of this requirement to gaseous CO2 pipelines, taking into account that existing (and previously unregulated) gaseous CO2 pipelines might have been built before promulgation of a rule that regulates gaseous CO2 pipelines. In such cases, PHMSA may need to include language to grandfather, exempt, or otherwise address pressure test requirement for pre-existing steel pipe used to transport gaseous CO2. 7.1.8 §195.11 - What is a regulated rural gathering line and what requirements apply? Department of Transportation 17 Pipeline and Hazardous Materials Safety Administration There are two sources of CO2, natural and anthropogenic (manmade). Just as there are oil and natural gas deposits trapped in the earth, there are also natural deposits of CO2. PHMSA anticipates that most of the demand for gaseous CO2 pipelines would be to transport CO2 produced from man-made sources, such as from the combustion of fossil fuels in power plants, as a result of the current environmental emphasis and development of CCS to reduce GHG emissions (since the injected CO2 is then trapped and permanently stored in depleted oil wells). However, pipelines that gather CO2 from natural sources might meet the definition of a gathering line. Gathering pipelines that transport CO2 in a gaseous state may become regulated as gathering pipelines. In the case of a rural gathering line, current requirements under §195.11 do not regulate rural gathering lines if they do not impact Unusual Sensitive Areas. Since any gaseous CO2 pipeline accident would release CO2 as a vapor and would have little if any impact on USAs, PHMSA would have to address if and how to regulate gaseous CO2 rural gathering pipelines. 7.2 Regulating Gaseous CO2 Pipelines under Part 192 7.2.1 Comparability of Parts 192 and 195 with Respect to Regulating Gaseous CO2 Pipelines The design, construction, operation, maintenance, and surveillance requirements of Part 195 are comparable to, and in many cases closely parallel, similar requirements in Part 192. In 2010, PHMSA conducted a team review to compare Parts 192 and 195, with a view toward identifying gaps or differences between the two, and harmonizing Parts 192 and 195 in subsequent rulemaking. PHMSA believes that regulating gaseous CO2 under Part 192 would ensure safety comparable to regulating supercritical CO2 under Part 195. Table 4 lists the regulatory requirements in Part 195 that specifically mention CO2 by name (in the context of Part 195, these refer to the transport of supercritical CO2). Some of these are generic references that simply refer to the scope of Part 195 (i.e., they state that the requirement applies to hazardous liquid and CO2 pipelines), while some of them are special technical requirements that apply only to CO2 pipelines. Note that this table is not a complete list of requirements in Part 195 that apply to CO2 pipelines, as all of Part 195 applies to CO2 pipelines unless specified otherwise. However, most of the general requirements of Part 195 have parallel and/or equivalent requirements in Part 192, or Part 191, which addresses reporting requirements. Table 4 lists comments regarding if and how Part 192 could address those specific requirements that exist in Part 195. Table 4: Comparison of 49 CFR 195 Requirements that Specifically Name Carbon Dioxide with Part 191 and 192 Requirements 49 CFR 195 Requirement Comparison with Parts 191 and 192 §195.2 Definitions §195.4 Compatibility with hazardous liquids or carbon dioxide being transported §192.3 Definitions §192.53(b) Compatibility with any gas the pipeline transports Department of Transportation 18 Pipeline and Hazardous Materials Safety Administration Table 4: Comparison of 49 CFR 195 Requirements that Specifically Name Carbon Dioxide with Part 191 and 192 Requirements 49 CFR 195 Requirement Comparison with Parts 191 and 192 §195.8 Transportation of hazardous liquid or carbon dioxide in pipelines constructed with other than steel pipe §195.49 Annual report §195.50 Reporting accidents $195.52 Immediate notice of certain accidents §195.102(b) Design temperature (see section 7.1.5) §195.111 Fracture propagation (see section 7.1.6) §195.116(c) Compatibility of material used in valves §195.302 Test Requirements: General requirements §195.306(c) Test medium §195.401 General operation and maintenance requirements §195.402 Procedural manual for operations, maintenance, and emergencies §195.403 Emergency response training §195.410 Line markers §195.440 Public awareness No comparable requirement in Part 192. Part 192 has design requirements for plastic pipe, but no notification requirements. An evaluation would be needed to determine if construction of gaseous CO2 pipelines with pipe material other than steel should be allowed. If not, appropriate regulations would be needed to address this aspect. §191.17 §191.15 Incident report §191.5 Immediate notice of certain incidents There is no equivalent requirement in Part 192. As discussed in section 7.1.5, an evaluation is needed to determine if a similar requirement would be needed for a gaseous CO2 pipeline. There is no equivalent requirement in Part 192. As discussed in section 7.1.6, an evaluation is needed to determine if a similar requirement would be needed for a gaseous CO2 pipeline. §192.145(c) is a comparable requirement, although it uses different language. An evaluation is needed to determine if revisions would be needed for a gaseous CO2 pipeline. §192.503 Test Requirements: General requirements. Although comparable, hoop stress limitations are based on class location, which is not applicable to Part 195. See section 7.2.3, below, for discussion on the need to address class locations for gaseous CO2 pipelines. §192.503(b) specifies that the test medium must be liquid, air, natural gas, or inert gas. An evaluation is needed to determine if this paragraph needs to be revised to add CO2 as an allowed test medium and/or to address the limitations imposed by §195.306(c) for the use of carbon dioxide as the test medium. §192.603 General operating requirements and .703 general maintenance requirements. §192.605 Procedural manual for operations, maintenance, and emergencies §192.615(b)(2), a paragraph under §192.615 Emergency plans, includes requirements for emergency response training. §192.707 Line markers for mains and transmission lines. An evaluation of the exceptions to marking pipelines specified in §192.707(b) would be needed, since Part 195 does not have similar exceptions. §192.616 Public awareness. Department of Transportation 19 Pipeline and Hazardous Materials Safety Administration Table 4: Comparison of 49 CFR 195 Requirements that Specifically Name Carbon Dioxide with Part 191 and 192 Requirements 49 CFR 195 Requirement Comparison with Parts 191 and 192 §195.452 Integrity management §195.579 What must I do to mitigate internal corrosion? Part 192, Subpart O. However, the method for determining if a segment could affect an HCA is not applicable to non-flammable gas (such as CO2). See section 7.2.2. §192.475 Internal corrosion control: General, and §192.477 Internal corrosion control: Monitoring. Since comparable requirements exist or could be addressed in Part 192, PHMSA believes that the safety basis for regulation of gaseous CO2 pipelines under Part 192 would be comparable to regulating gaseous CO2 pipelines under Part 195, as cross-referenced from Part 192. A related option could be to regulate gaseous CO2 through a subset of the Part 192 regulations, similar to current §192.9 regulations for gathering lines. Some requirements in Part 192 might require adjustments or modifications to accommodate the regulation of gaseous CO2 pipelines. Those items are discussed below, but are not necessarily an exhaustive list of topics that might need to be evaluated as a result of covering gaseous CO2 pipelines under Part 192. A detailed technical evaluation would be conducted as part of any formal rulemaking proceeding. 7.2.2 Determination of Covered Segment under Part 192, Subpart O (Integrity Management) for Gaseous CO2 Pipelines Whether a pipeline segment can impact a “high consequence area” (HCA) depends on whether or not the segment is within the potential impact radius (PIR). The PIR of a pipeline is based on the predicted heat flux of a pipeline explosion and is calculated using an equation that is based on flammable gasses. The equation is applicable to flammable gases only, and not applicable for determining the potential impact radius of an accident involving CO2. Hence, if CO2 is included in Part 192, and included in Subpart O, an alternative method of determining if a CO2 pipeline segment could impact an HCA would have to be devised. The most logical method of determining the impact of a gaseous CO2 release would be the use of dispersion analysis to determine the extent and concentration of a vapor cloud released following a CO2 pipeline leak/rupture (similar to the technique used to comply with Part 195 to determine if a supercritical CO2 line could affect an HCA), which would require Subpart O to be modified. Since HVLs and supercritical CO2 behave as gases when released, and air dispersion is used to determine the impact on an HCA, including gaseous CO2 pipelines into 195.452 may be the logical choice. 7.2.3 Applicability of §192.5 - Class locations “Class locations were an early method of differentiating risk along gas pipelines. The class location concept pre-dates Federal regulation of pipelines. These designations were previously included in the ASME International standard, “Gas Transmission and Distribution Pipeline Department of Transportation 20 Pipeline and Hazardous Materials Safety Administration Systems,” (ASME B31.8) from which the initial pipeline safety regulations were derived.”29 Similar to subpart O, the class location concept was developed based on an explosion hazard from natural gas. Class location impacts many design and operation requirements in Part 192, including (notably) the design factor and the test pressure to establish maximum allowable operating pressure (MAOP). PHMSA would have to address if and how to apply the class location concept to gaseous CO2 pipelines. 7.2.4 §192.8 - How are onshore gathering lines and regulated onshore gathering lines determined? There are two sources of CO2, natural and anthropogenic (manmade). Just as there are oil and natural gas deposits trapped in the earth, there are also natural deposits of CO2. PHMSA anticipates that most of the demand for gaseous CO2 pipelines would be to transport CO2 produced from man-made sources, such as from the combustion of fossil fuels in power plants, as a result of the current environmental emphasis and development of CCS to reduce GHG emissions (since the injected CO2 is then trapped and permanently stored in depleted oil wells). However, pipelines that gather CO2 from natural sources might meet the definition of a gas gathering line. Gathering pipelines that transport CO2 in a gaseous state may become regulated as either a Type A or B pipeline. PHMSA would have to address if and how to apply the class location concept to gaseous CO2 gathering pipelines. 7.2.5 Maintaining Gaseous CO2 in a Gaseous State The maximum allowable operating pressure (MAOP) specified in Part 192 is based exclusively on not overstressing the pipe to assure pipeline integrity. In the case of gaseous CO2, there are safety considerations that might require operational controls on pipelines transporting CO2 in the gaseous state in order to maintain the CO2 in a gaseous state (i.e., it would be important to preclude the CO2 from changing to liquid phase during transportation operations). To maintain CO2 in a gaseous state, the pressure needs to be kept below the interface pressure at which gaseous CO2 is compressed into a liquid (for the operating temperature). Refer to Figure 1. To do this, the operator would need to take into account topography, environmental conditions, and temperature extremes (both operational and environmental).30 Therefore, PHMSA may need to evaluate the need to prescribe additional controls on operational parameters such as temperature and pressure for this purpose. Such pressure controls might require that pressures be maintained below the MAOP that would have been determined under existing Part 192 requirements. 8.0 Summary 29 78 FR 46560 For example, the design of an early CO2 pipeline in 1970, the Canyon Reef pipeline, considered two concepts. One would control the pressure in the pipeline low enough to maintain the CO 2 in a gaseous phase. The second would control the pressure high enough to maintain the CO2 as a dense vapor. In that case, the design to keep the CO2 as a gas would have maintained the operating pressure less than 696 psi. 30 Department of Transportation 21 Pipeline and Hazardous Materials Safety Administration The transport of CO2 in supercritical fluid form is currently regulated in Part 195 by PHMSA. Operators are required to submit data on their CO2 pipelines in Hazardous Liquid Pipeline Annual Reports. In 2013 Annual Reports, hazardous liquid pipeline operators reported 5,19531 miles of CO2 pipelines. Currently, PHMSA does not regulate pipelines transporting CO2 in a subcritical liquid or gaseous state. The Act mandated that the Secretary of Transportation “prescribe minimum safety standards for the transportation of carbon dioxide by pipeline in a gaseous state.” The Act also mandated that in establishing those standards, the Secretary consider whether applying the existing minimum safety standards in Part 195 “for the transportation of carbon dioxide in a liquid state to the transportation of carbon dioxide in a gaseous state would ensure safety.” INGAA and others have estimated the need to build up to 66,000 miles of CO2 pipelines by 2030. This large expansion of CO2 pipeline capacity is driven by two major factors: (1) To reduce the amount of greenhouse gases released to the atmosphere, Carbon Capture and Sequestration (CCS) projects are being constructed or planned. These projects involve the retrofit of equipment to sources of anthropogenic (man-made) CO2 such as coal-fired electric power plants. The equipment would capture CO2 at some point in the process and transport it for use in enhanced oil recovery (EOR) projects or for sequestration in depleted wells, saline aquifers, or abandoned coal mines. (2) The ongoing improvement in oil extraction technology is increasing demand for CO2 for use in EOR oil production. For technical efficiency, PHMSA expects that most CO2 would be transported in the supercritical fluid state, and thus would be regulated under the existing requirements of Part 195. However, in some cases, technical issues such as the physical characteristics of the sequestration storage reservoir, transportation distance, et cetera, the CO2 might be transported in the gaseous state. In such cases, revisions of the existing pipeline safety regulations would be needed to implement the statutory mandate, since current regulations do not cover the transportation of gaseous CO2. PHMSA performed a preliminary evaluation of two options for regulating gaseous CO2 pipelines: Regulate the transport of gaseous CO2 entirely under Part 192, or Under Part 192 where appropriate with reference to applicable sections of Part 195. It should be noted that this preliminary evaluation might not have identified every issue that would need to be addressed. A detailed technical evaluation would be conducted as part of any formal rulemaking proceeding and industry, stakeholders, and other interested parties would be given the opportunity to comment on any proposed rulemaking. 31 Ibid. 14, p. 5 Department of Transportation 22 Pipeline and Hazardous Materials Safety Administration The conclusion is that the minimum safety standards for the transport of supercritical fluid CO2 under Part 195 can, with some modifications, ensure the safe transportation of gaseous CO2 under Part 192. Also, since comparable requirements exist or could be addressed in Part 192, PHMSA believes that the safety basis for regulation of gaseous CO2 pipelines under Part 192 would be comparable to regulating gaseous CO2 pipelines under Part 195. Since the transportation of gases is subject to Part 192, either scenario would require an amendment to Part 192 to accommodate the regulation of the transportation of CO2 by pipelines in a gaseous state. Department of Transportation 23 Pipeline and Hazardous Materials Safety Administration Appendix A Known CO2 Pipeline Projects Being Planned or Built A.1 Natural CO2 Reservoir Pipeline Projects There are several CO2 pipeline construction projects planned or underway from both natural and anthropogenic sources. The following describes some planned and ongoing natural CO2 projects. This is not intended to be a comprehensive list of new projects. It should also be noted that this was a snapshot in time when this report was developed and some of projects presented below may be canceled in the future. These projects will use CO2 for EOR and will transport it in a supercritical phase. A.1.1 Kinder Morgan Energy Partners, LP (KMEP)32 KMEP reported it will invest $671 million to expand its carbon dioxide infrastructure in southwestern Colorado and New Mexico. KMEP plans to expand the production operations in the Cow Canyon area of the McElmo Dome source field in Montezuma County, Colorado, and expand the 500-mile Cortez Pipeline that transports CO2 from southwestern Colorado to eastern New Mexico and western Texas for use in enhanced oil recovery projects. KMEP investments are in addition to its recently announced initiative to invest $1 billion to develop the St. Johns source field in Apache County, Arizona, and build a 241-mile pipeline to transport CO2 from St. Johns to the Cortez Pipeline in Torrance County, New Mexico. The Cortez Pipeline expansion consists of adding a 64-mile loop in New Mexico and three new pump stations. A.1.2 Denbury Resources33 Denbury Resources’ primary focus is on enhanced oil recovery utilizing CO2. Denbury has operations in the Gulf Coast region (Texas, Louisiana, Mississippi, and Alabama) and in the Rocky Mountain region (Montana, North Dakota, and Wyoming). Denbury has plans to expand its operations in both regions. Denbury will be constructing a 9-mile, 16-inch diameter pipeline connecting the existing Green pipeline with the Webster Field in Texas. The project is expected to be operational in 2015. Denbury will be constructing a 90-mile pipeline connecting their Green pipeline with the Conroe Field in Texas. The project is expected to be operational in 2017. 32 KMEP to expand CO2 systems in Colorado, New Mexico, http://www.ogj.com/articles/2014/05/kmep-to-expandcarbon-dioxide-systems-in-colorado-new-mexico.html?cmpid=EnlPipelineMay272014 33 CO2 Sources and Pipelines, http://www.denbury.com/files/2014-02%20UPLOADS/201311%20Analyst%20Day%20FINAL%20Website%20Print%20Version_v001_w0yoh7.pdf Department of Transportation 24 Pipeline and Hazardous Materials Safety Administration Denbury will be constructing a 250-mile pipeline connecting their Riley Ridge and LaBarge Fields with the Greencore pipeline in Wyoming. Operation is expected to commence in 2019-2020. Denbury will be constructing a 130-mile extension of the Greencore pipeline with the Cedar Creek Anticline in Montana. Operation is expected to commence in 2020. A.1.3 Blackstone Energy Partners Blackstone Energy Partners and Blackstone Group affiliates have formed Windy Cove Energy LLC with a commitment to invest $700 million to acquire and develop carbon dioxide enhanced oil recovery assets in the U.S.34 A.2 Anthropogenic Sources of CO2 The following projects are anthropogenic (manmade) projects intended to capture and sequester carbon in oil wells, saline aquifers, and abandoned coal mines. These projects were a snapshot in time when this report was developed and some may have been canceled and new projects planned. The CO2 used in the EOR projects described below will be transported in a supercritical phase. The saline aquifer injection project will also transport CO2 in a supercritical phase. A.2.1 Southern Company/Denbury Resources35 Southern Company has built a Carbon Capture facility in Kemper County, Mississippi. The facility will capture carbon from a 582-megawatt gasification power plant. The CO2 will be transported 60 miles to oil fields operated by Denbury for enhanced oil recovery through pipelines operated by Denbury. The facility is expected to be operational in 2015. A.2.2 SCS Energy36 SCS Energy is planning to construct a 4-mile pipeline to capture CO2 for enhanced oil recovery in the Elk Hills oil field in Kern County, California. The project is expected to be operational in 2018. A.2.3 Texas Clean Energy Project (TCEP)37 TCEP will construct pipelines to transport captured CO2 from a coal burning power plant near Odessa, Texas, to wells in the Permian Basin for EOR. The project is expected to be operational in 2015. 34 http://www.ogj.com/articles/2014/10/windy-cove-to-invest-700-million-in-us-carbon-dioxide-eorprojects.html?cmpid=EnlDailyOctober92014/ 35 Carbon Capture, http://www.eenews.net/stories/1060003330 36 http://sequestration.mit.edu/tools/projects/ 37 http://sequestration.mit.edu/tools/projects/ Department of Transportation 25 Pipeline and Hazardous Materials Safety Administration A.2.4 NRG Energy, Inc.38 NRG will build a facility to capture carbon from an existing power plant in Fort Bend County, Texas. The CO2 will be transported 82 miles to the West Ranch Oil Field. The project is expected to be operational in 2016. A.3 Carbon Capture Projects Proposed or in Planning The Global CCS Institute tracks Carbon Capture and Sequestration (CCS) projects planned or operational around the world.39 These projects were a snapshot in time when this report was developed and some projects may have been cancelled and other new projects planned. The phase in which the CO2 will be transported is unknown. PROJECT NAME Indiana Gasification Medicine Bow Coal-to-Liquids Facility Mississippi Clean Energy Project Quintana South Heart Project Riley Ridge Gas Plant Sargas Texas Point Comfort Project Texas Clean Energy Project CAPTURE TYPE Pre-combustion capture (gasification) Pre-combustion capture (gasification) Pre-combustion capture (gasification) Pre-combustion capture (gasification) Pre-combustion capture (natural gas processing) Post-combustion capture Pre-combustion capture (gasification) 38 http://www.marketwatch.com/story/worlds-largest-post-combustion-carbon-capture-enhanced-oil-recoveryproject-to-be-built-by-nrg-energy-and-jx-nippon-oil-gas-exploration-2014-07-15?reflink=MW_news_stmp 39 http://www.globalccsinstitute.com/projects/browse Department of Transportation 26 Pipeline and Hazardous Materials Safety Administration In addition, INGAA40 has identified the following proposed CCS projects. The phase in which the CO2 will be transported is unknown. PROJECT AEP AEP Basin Electric Clean Energy Systems Duke Energy Edwardsport Duke Energy Cliffside Excelsior Energy H Energy (BP & Rio Tinto) Carson Jamestown Bd Public Utilities NRG Sugarland NRG Tonawanda Peabody Energy Peabody Energy Seminole Electric Coop. Tampa Tenaska Sweetwater Tenaska Taylorsville Xcel 40 CAPTURE TYPE Pulverized Coal power Integrated Gasification Combined Cycle coal power (two units) PC power (retrofit) Oxyfuel gas power IGCC coal power PC power IGCC coal power IGCC pet coke power Circulating Fluidized Bed oxyfuel coal power PC power (retrofit) IGCC coal power Syngas production Supercritical pulverized coal (SCPC) SCPC SCPC power IGCC coal power IGCC coal power Ibid. 14, p. 5 Department of Transportation 27 Pipeline and Hazardous Materials Safety Administration
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