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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 624-S.F.No. 2111 
           An act relating to public utilities; pipeline safety; 
          authorizing the office of pipeline safety to inspect 
          and regulate intrastate pipeline facilities carrying 
          liquefied natural gas, liquefied petroleum gas, and 
          hazardous liquids; adopting federal safety 
          regulations; removing the depth limitation for the one 
          call excavation notice system; providing for the 
          calculation of pipeline inspection fees; appropriating 
          money; amending Minnesota Statutes 1986, sections 
          299F.56, subdivisions 1, 2, 4, 6, and by adding 
          subdivisions; and 299F.59; Minnesota Statutes 1987 
          Supplement, sections 116I.015, subdivision 3; 216D.01, 
          subdivision 5; 299F.57, subdivision 1, and by adding a 
          subdivision; 299F.58; 299F.62; 299F.63, subdivision 1; 
          299F.64; and 299J.12, subdivision 2; proposing coding 
          for new law in Minnesota Statutes, chapter 299F; 
          repealing Minnesota Statutes 1987 Supplement, section 
          299F.63, subdivision 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1987 Supplement, section 
116I.015, subdivision 3, is amended to read:  
    Subd. 3.  [RULES.] (a) The environmental quality board 
shall adopt rules governing the routing of pipelines.  The rules 
apply only to the route of pipelines and may not set safety 
standards for the construction of pipelines.  
    (b) The rules must: 
    (1) require that a person proposing construction of a 
pipeline submit to the board one preferred route for the 
pipeline and evidence of consideration of alternatives; 
    (2) provide for notice of proposed pipeline routes to local 
units of government and to owners and lessees of property along 
the routes being considered; 
    (3) provide for public hearings on proposed pipeline 
routes, which may follow the board's procedures for public 
hearings on proposed power line routes and electrical generating 
plant sites; 
    (4) provide criteria that the board will use in determining 
pipeline routes, which must include the existence of populated 
areas, consideration of local government land use laws including 
ordinances adopted under section 299J.05, and the impact of the 
proposed pipeline on the natural environment; 
    (5) provide a procedure that the board will follow in 
issuing pipeline routing permits and require the board to issue 
the permits within nine months after the permit application is 
received by the board, unless the board extends this deadline 
for cause; 
    (6) provide for the payment of fees by persons proposing to 
construct pipelines to cover the costs of the board in 
implementing this section; 
    (7) allow the board to provide exemptions from all or part 
of the pipeline routing permit application process in 
emergencies or if the board determines that the proposed 
pipeline will not have a significant impact on humans or the 
environment; 
    (8) require exemption determinations to be made within 90 
days after an application; and 
    (9) require that a person who has constructed a pipeline, 
to the extent possible, restore the area affected by the 
pipeline to the natural conditions that existed immediately 
before construction of the pipeline, provided that this 
restoration is compatible with the safe operation, maintenance, 
and inspection of the pipeline. 
    (c) The rules do not apply to temporary use of a route for 
purposes other than installation of a pipeline, to securing 
survey or geological data, to repair or replacement of an 
existing pipeline within the existing right-of-way, or to minor 
relocation of less than three-quarters of a mile of an existing 
pipeline.  The rules do not apply to construction of new 
pipeline in a right-of-way in which pipeline has been 
constructed before July 1, 1988, or in a right-of-way that has 
been approved by the board after July 1, 1988, except when the 
board determines that there is a significant chance of an 
adverse effect on the environment or that there has been a 
significant change in land use or population density in or near 
the right-of-way since the first construction of pipeline in the 
right-of-way, or since the board first approved the right-of-way.
     Sec. 2.  Minnesota Statutes 1987 Supplement, section 
216D.01, subdivision 5, is amended to read:  
    Subd. 5.  [EXCAVATION.] "Excavation" means an activity that 
moves, removes, or otherwise disturbs the soil at a depth of 18 
inches or greater by use of a motor, engine, hydraulic or 
pneumatically-powered tool, or machine-powered equipment of any 
kind, or by explosives.  Excavation does not include:  
    (1) the repair or installation of agricultural drainage 
tile for which notice has been given as provided by section 
116I.07, subdivision 2; 
    (2) the extraction of minerals; 
    (3) the opening of a grave in a cemetery; 
    (4) normal maintenance of roads and streets if the 
maintenance does not change the original grade and does not 
involve the road ditch; or 
    (5) plowing, cultivating, planting, harvesting, and similar 
operations in connection with growing crops, landscaping, or 
gardening, unless any of these activities disturbs the soil to a 
depth of 18 inches or more; or 
    (6) landscaping or gardening unless one of the activities 
disturbs the soil to a depth of 12 inches or more. 
    Sec. 3.  Minnesota Statutes 1986, section 299F.56, 
subdivision 1, is amended to read:  
    Subdivision 1.  As used in sections 299F.56 to 299F.64 and 
section 19, the terms defined in this section shall have the 
meanings given them. 
    Sec. 4.  Minnesota Statutes 1986, section 299F.56, 
subdivision 2, is amended to read:  
    Subd. 2.  "The federal Natural Gas Pipeline Safety Act of 
1968 of the United States" shall mean Public Law Number 90-481, 
Statutes at Large, volume 82, page 720, 90th Congress, S. 1166, 
approved August 12, 1968 means United States Code, title 49, 
sections 1671 to 1686. 
    Sec. 5.  Minnesota Statutes 1986, section 299F.56, is 
amended by adding a subdivision to read: 
    Subd. 2a.  "The federal Hazardous Liquid Pipeline Safety 
Act" means United States Code, title 49, sections 2001 to 2014. 
    Sec. 6.  Minnesota Statutes 1986, section 299F.56, 
subdivision 4, is amended to read:  
    Subd. 4.  "Gas" means natural gas, liquefied natural gas, 
flammable gas, or gas which is toxic or corrosive, except that.  
"Gas" shall not include also includes liquefied petroleum gas in 
distribution systems.  
    Sec. 7.  Minnesota Statutes 1986, section 299F.56, is 
amended by adding a subdivision to read: 
     Subd. 4a.  "Hazardous liquid" means "hazardous liquid" and 
"highly volatile liquid" as defined in Code of Federal 
Regulations, title 49, section 195.2. 
    Sec. 8.  Minnesota Statutes 1986, section 299F.56, is 
amended by adding a subdivision to read: 
     Subd. 4b.  "Liquefied natural gas" means natural gas or 
synthetic gas having methane (CH4) as its major constituent that 
has been changed to a liquid or semisolid.  
    Sec. 9.  Minnesota Statutes 1986, section 299F.56, 
subdivision 6, is amended to read:  
     Subd. 6.  "Gas pipeline facilities" includes, without 
limitation, new and existing pipe, rights of way, and any 
equipment, facility, or building used in the transportation of 
gas or the treatment of gas during the course of transportation, 
but "rights of way" as used in sections 299F.56 to 299F.64 does 
not authorize the state fire marshal to prescribe the location 
or routing of any pipeline facility.  "Pipeline facilities" 
shall not include any facilities subject to the jurisdiction of 
the Federal Power Energy Regulatory Commission under the Natural 
Gas Act of the United States. 
    Sec. 10.  Minnesota Statutes 1986, section 299F.56, is 
amended by adding a subdivision to read: 
    Subd. 6a.  "Hazardous liquid pipeline facilities" includes, 
without limitation, new and existing pipe, rights-of-way, and 
any equipment, facility, or building used or intended for use in 
the transportation of hazardous liquids. 
    Sec. 11.  Minnesota Statutes 1987 Supplement, section 
299F.57, subdivision 1, is amended to read:  
    299F.57 [MINIMUM SAFETY STANARDS STANDARDS; GAS PIPELINES.] 
    Subdivision 1.  The commissioner shall, by order, establish 
minimum safety standards for the transportation of gas and gas 
pipeline facilities.  Such standards may apply to the design, 
installation, inspection, testing, construction, extension, 
operation, replacement, and maintenance of gas pipeline 
facilities.  The standards may not prescribe the location or 
routing of a pipeline facility.  Standards affecting the design, 
installation, construction, initial inspection, and initial 
testing shall not be applicable to pipeline facilities in 
existence on the date such standards are adopted.  Such safety 
standards shall be practicable and designed to meet the need for 
pipeline safety.  In prescribing such standards, the 
commissioner shall consider: 
    (a) relevant available pipeline safety data; 
    (b) whether such standards are appropriate for the 
particular type of pipeline transportation; 
    (c) the reasonableness of any proposed standards; 
    (d) the extent to which any such standards will contribute 
to public safety; and 
    (e) the existing standards established by the Secretary of 
Transportation of the United States pursuant to the federal 
Natural Gas Pipeline Safety Act of 1968 of the United States.  
    Provided, however, that the commissioner shall not be 
empowered to adopt any such standards as to the transportation 
of gas or to pipeline facilities which are subject to the 
jurisdiction of the Federal Power Energy Regulatory Commission 
under the Natural Gas Act of the United States, except as 
provided in sections 299J.01 to 299J.17. 
    Sec. 12.  Minnesota Statutes 1987 Supplement, section 
299F.57, is amended by adding a subdivision to read: 
     Subd. 1a.  [ADOPTION OF FEDERAL STANDARDS.] The federal 
safety standards adopted as Code of Federal Regulations, title 
49, parts 192 and 193, are adopted. 
    Sec. 13.  Minnesota Statutes 1987 Supplement, section 
299F.58, is amended to read:  
    299F.58 [CERTIFICATIONS AND REPORTS.] 
    The commissioner is authorized to make such certifications 
and reports to the United States Secretary of Transportation as 
may be required from time to time under the federal Natural Gas 
Pipeline Safety Act of 1968 of the United States.  
    Sec. 14.  Minnesota Statutes 1986, section 299F.59, is 
amended to read:  
    299F.59 [COMPLIANCE WITH STANDARDS.] 
    Subdivision 1.  Each person who engages in the 
transportation of gas or hazardous liquids or who owns or 
operates gas or hazardous liquid pipeline facilities shall: 
    (a) at all times after the date any applicable safety 
standard established under sections 299F.56 to 299F.64 and 
section 19 takes effect comply with the requirements of such 
standard; 
    (b) file and comply with a plan of inspection and 
maintenance required by sections 299F.56 to 299F.64 and section 
19; and 
    (c) permit access to or copying of records, and make 
reports or provide information, and permit entry or inspection, 
as required by sections 299F.56 to 299F.64 and section 19.  
    Subd. 2.  Nothing in sections 299F.56 to 299F.64 and 
section 19 shall affect the common law or statutory tort 
liability of any person. 
    Sec. 15.  Minnesota Statutes 1987 Supplement, section 
299F.62, is amended to read:  
    299F.62 [PLAN FOR INSPECTION AND MAINTENANCE; GAS 
PIPELINES.] 
    Each person who engages in the transportation of gas or who 
owns or operates gas pipeline facilities subject to sections 
299F.56 to 299F.64 shall file with the commissioner a plan for 
inspection and maintenance of each such pipeline facility owned 
or operated by such person, and any changes in such plan, in 
accordance with the rules prescribed by the commissioner.  On 
finding that such plan is inadequate to achieve safe operation, 
the commissioner shall, after notice and opportunity for a 
hearing, require such plan to be revised.  The plan required by 
the commissioner shall be practicable and designed to meet the 
need for pipeline safety.  In determining the adequacy of any 
such plan, the commissioner shall consider the following: 
    (a) relevant available pipeline safety data; 
    (b) whether the plan is appropriate for the particular type 
of pipeline transportation; 
    (c) the reasonableness of the plan; and 
    (d) the extent to which such plan will contribute to public 
safety.  
    Sec. 16.  Minnesota Statutes 1987 Supplement, section 
299F.63, subdivision 1, is amended to read:  
    Subdivision 1.  Each person who engages in the 
transportation of gas or who owns or operates gas pipeline 
facilities shall establish and maintain such records, make such 
reports, and provide such information as the commissioner may 
reasonably require to determine whether such person has acted or 
is acting in compliance with sections 299F.56 to 299F.64 and the 
standards established under sections 299F.56 to 299F.64.  Each 
such person shall, upon request of an officer, employee, or 
agent authorized by the commissioner, permit such officer, 
employee, or agent to inspect books, papers, records and 
documents relevant to determining whether such person has acted 
or is acting in compliance with sections 299F.56 to 299F.64 and 
the standards established pursuant to sections 299F.56 to 
299F.64.  For purposes of enforcement of sections 299F.56 to 
299F.64, officers, employees, or agents authorized by the 
commissioner, upon presenting appropriate credentials to the 
individual in charge, are authorized to enter upon, at 
reasonable times, gas pipeline facilities, and to inspect, at 
reasonable times and within reasonable limits and in a 
reasonable manner, such facilities.  Each such inspection shall 
be commenced and completed with reasonable promptness.  
    Sec. 17.  [299F.631] [INSPECTION FEE.] 
    Subdivision 1.  [ASSESSMENT AND DEPOSIT OF FEE.] From each 
pipeline operator subject to the intrastate pipeline inspection 
authority under sections 299F.56 to 299F.64 and section 19, the 
commissioner shall assess and collect an inspection fee in an 
amount calculated under subdivisions 2 and 4.  The assessment of 
the inspection fee must be made no fewer than 30 days after the 
end of the quarter.  If an operator does not pay the fee within 
60 days after the assessment was mailed, the commissioner may 
impose a delinquency fee of ten percent of the quarterly 
inspection fee and interest at the rate of 15 percent per year 
on the portion of the fee not paid.  Fees collected under this 
section must be credited to the pipeline safety account.  
    Subd. 2.  [CALCULATION OF FEE.] (a) For each quarter that 
an inspection fee is to be assessed, the commissioner shall 
calculate the total actual expenses and obligations incurred by 
the office of pipeline safety in implementing sections 299F.56 
to 299F.64 and section 19.  The calculation must not include: 
    (1) expenses that will be reimbursed by the federal 
government; 
    (2) expenses attributable to follow-up inspections 
necessitated by the failure of a pipeline facility to comply 
with safety standards; 
    (3) expenses attributable to investigations of specific 
pipeline facilities; 
    (4) expenses attributable to inspections of newly 
constructed pipelines over 2,000 feet in length; 
    (5) expenses attributable to the inspection of facilities 
carrying liquefied natural gas, and hazardous liquids; and 
    (6) expenses attributable to the inspection of facilities 
carrying liquefied petroleum gas, until the commissioner adopts 
a rule providing for metered billing of these facilities. 
    (b) The commissioner shall assess each pipeline operator 
for a pro rata share of the expenses and obligations calculated 
under paragraph (a), based on the number of meters in service on 
the preceding December 31. 
    (c) The expenses and obligations described in paragraph 
(a), clauses (2), (3), (4), and (5) must be directly charged to 
the appropriate pipeline operators on a quarterly basis.  The 
expenses and obligations described in paragraph (a), clause (6), 
must be directly charged to the appropriate pipeline operators 
on a quarterly basis until the commissioner adopts a rule 
providing for metered billing of facilities carrying liquefied 
petroleum gas. 
    Subd. 3.  [EMERGENCY RULES.] The commissioner may adopt 
emergency rules to implement this section. 
    Subd. 4.  [SUPPORT COSTS.] The commissioner shall calculate 
the general support costs of the office of pipeline safety for 
the preceding quarter, and add to the inspection fee calculated 
under subdivision 2 the share of those costs that is 
proportionate to the amount of time spent by the office in 
implementing sections 299F.56 to 299F.64 and section 19 with 
respect to that pipeline operator. 
    Sec. 18.  Minnesota Statutes 1987 Supplement, section 
299F.64, is amended to read:  
    299F.64 [FEDERAL MONEY.] 
    The commissioner may accept any and all moneys provided for 
or made available to this state by the United States of America 
or any department or agency thereof with respect to prescribing, 
setting, and enforcing rules and safety standards for the 
transportation of natural and other gas, and hazardous liquids, 
by pipelines in accordance with the provisions of federal law 
and any rules or regulations promulgated thereunder and the 
commissioner is further authorized to do any and all things, not 
contrary to the laws of this state, required of this state by 
such federal law and the rules and regulations promulgated 
thereunder in order to obtain such federal money. 
    Sec. 19.  [299F.641] [INTRASTATE HAZARDOUS LIQUID 
PIPELINES.] 
    Subdivision 1.  [JURISDICTION.] The commissioner has 
regulatory jurisdiction over the safety standards and practices 
of intrastate hazardous liquid pipeline facilities and the 
transportation of hazardous liquids associated with those 
facilities. 
    Subd. 2.  [FEDERAL STANDARDS ADOPTED.] The federal safety 
standards adopted as Code of Federal Regulations, title 49, part 
195, are adopted.  The commissioner may adopt additional or more 
stringent safety standards for intrastate pipeline facilities 
and the transportation of hazardous liquids associated with 
those facilities, if the state standards are compatible with the 
federal standards.  The standards may not prescribe the location 
or routing of a pipeline facility.  
    Subd. 3.  [ENFORCEMENT.] The commissioner must establish 
and implement an inspection program to enforce the standards 
adopted under subdivision 2.  The program must be established 
and implemented in a manner that fully complies with 
requirements for state certification under United States Code, 
title 49, section 2004. 
    Subd. 4.  [PROTECTION OF PIPELINE FACILITIES.] The 
commissioner must encourage and promote programs designed to 
prevent damage to hazardous liquid pipeline facilities as a 
consequence of demolition, excavation, tunneling, or 
construction activity. 
    Subd. 5.  [INVESTIGATIONS; RECORD KEEPING.] (a) The 
commissioner may, to the extent necessary to carry out the 
enforcement responsibilities of this section, conduct 
investigations, make reports, issue subpoenas, conduct hearings, 
require the production of relevant documents and records, take 
depositions, and conduct research, testing, development, 
demonstration, and training activities. 
    (b) The commissioner may require each person who engages in 
the transportation of hazardous liquids or who owns or operates 
pipeline facilities to establish and maintain records, and to 
make reports and provide information to the commissioner.  The 
records and other information must be made available as the 
commissioner orders to enable the commissioner to determine 
whether the person has acted or is acting in compliance with 
this section and the standards or orders adopted under this 
section. 
    (c) Officers, employees, or agents authorized by the 
commissioner, on presenting appropriate credentials to the 
person in charge, may enter upon, inspect, and examine, at 
reasonable times and in a reasonable manner, the records and 
properties of persons to the extent the records and properties 
are relevant to determine whether the persons have acted or are 
acting in compliance with this section and the standards adopted 
under this section. 
    (d) An accident report made by an officer, employee, or 
agent of the office of pipeline safety is available for use in 
any civil, criminal, or other judicial proceeding arising out of 
the accident.  The officer, employee, or agent may be required 
to testify in the proceedings as to the facts developed in the 
investigation.  A report made available to the public need not 
identify individuals.  All reports on research projects, 
demonstration projects, and other related activities are public 
information. 
    (e) All information reported to or obtained by the 
commissioner under this subdivision that contains or relates to 
a trade secret referred to in United States Code, title 18, 
section 1905, is confidential for the purpose of that section, 
except that the information may be disclosed to other officers 
or employees concerned with enforcing this section.  Nothing in 
this section authorizes the withholding of information by the 
commissioner from a duly authorized committee of the legislature.
    Subd. 6.  [INSPECTION AND MAINTENANCE PLAN.] (a) Each 
person who engages in the transportation of hazardous liquids or 
who owns or operates hazardous liquid pipeline facilities must 
prepare, maintain, and carry out a current written plan for 
inspection and maintenance of each facility used in that 
transportation and owned or operated by that person as 
prescribed by the commissioner.  The commissioner may, by 
regulation, also require persons who engage in the 
transportation of hazardous liquids or who own or operate 
pipeline facilities subject to this section to file the plans 
for approval.  A plan required by this subdivision must be 
practicable, designed to meet the need for pipeline safety, and 
available to the commissioner on request.  The plan must enhance 
the commissioner's ability to discover a condition that causes a 
significant change or restriction in the operation of the 
pipeline facilities or constitutes a hazard to life or property. 
    (b) If the commissioner finds that a plan required under 
this subdivision is inadequate to achieve safe operation of 
pipeline facilities, the commissioner may, after notice and 
opportunity for a hearing, require the plan to be revised.  In 
determining the adequacy of a plan filed under this section, the 
commissioner shall consider: 
    (1) relevant available pipeline safety data; 
    (2) whether the plan is appropriate for the particular type 
of pipeline transportation or facility; 
    (3) the reasonableness of the plan; and 
    (4) the extent to which the plan will contribute to public 
safety. 
    Subd. 7.  [ANNUAL CERTIFICATION REPORT.] The commissioner 
must file an annual certification report with the secretary of 
the federal Department of Transportation.  The report must 
include: 
    (1) the name and address of each person subject to the 
safety jurisdiction of the commissioner under this section; 
    (2) all accidents or incidents reported during the 
preceding 12 months by each person that involved personal injury 
requiring hospitalization, fatality, or property damage 
exceeding $5,000 (whether or not sustained by a person subject 
to the safety jurisdiction of the office), and all other 
significant accidents, together with a summary of the 
commissioner's investigation as to the cause and circumstances 
surrounding the accident or incident; 
    (3) the record maintenance, reporting, and inspection 
program carried out by the commissioner to enforce compliance 
with the federal safety standards, including a detailed 
description of the number of inspections made of pipeline 
facilities during the preceding 12 months; and 
    (4) other information as the commissioner or federal law or 
rule may require.  
    The report included with the first annual certification 
need not show information unavailable at that time. 
    Subd. 8.  [CIVIL RELIEF.] The safety standards adopted 
under this section may be enforced as is provided for gas 
pipeline facilities under sections 299F.60 and 299F.61, and 
penalties collected must be paid to the commissioner for deposit 
in the state treasury and credit to the pipeline safety account. 
    Sec. 20.  Minnesota Statutes 1987 Supplement, section 
299J.12, subdivision 2, is amended to read:  
    Subd. 2.  [CALCULATION OF FEE.] Fees for pipelines governed 
by section 299F.63, subdivision 4, must be established as 
provided in the rules adopted under that section.  For 
other interstate pipelines subject to the inspection authority 
granted under sections 299J.01 to 299J.11, for each calendar 
year that an inspection fee is to be assessed, the commissioner 
shall calculate the total number of miles of pipeline to be 
inspected, the total cost of inspection, and the percentage of 
the total miles to be inspected that are or will be operated by 
each pipeline operator.  Each pipeline operator must be assessed 
a portion of the total inspection costs equal to the percentage 
of the total miles of pipeline to be operated by the pipeline 
operator, but the total fee may not exceed $5 for each mile of 
the operator's pipeline. 
    Sec. 21.  [HAZARDOUS MATERIALS RESPONSE TEAMS; STUDY.] 
    The commissioner of the department of public safety shall 
conduct a study to determine the need for hazardous materials 
response teams, training standards for and equipment needs of 
such teams, and potential implementation of teams including 
locating, directing and coordinating them.  The study must take 
into account the hazardous materials response and reporting 
requirements of the Superfund Amendments and Reauthorization 
Act, Public Law Number 99-499, 100 Stat. 1613 (1986).  The 
commissioner shall report the results of the study to the 
committee on regulated industries and the committee on 
environment and natural resources in the house of 
representatives and the committee on public utilities and energy 
and the committee on environment and natural resources in the 
senate by December 31, 1988. 
    Sec. 22.  [APPROPRIATION.] 
    The unexpended balance of funds appropriated to the 
commissioner of public safety by Laws 1987, chapter 353, section 
41, for fiscal year 1988 does not cancel but is available for 
fiscal year 1989. 
    Sec. 23.  [REPEALER.] 
    Minnesota Statutes 1987 Supplement, section 299F.63, 
subdivision 4, is repealed. 
    Sec. 24.  [EFFECTIVE DATE.] 
    Section 6 is effective July 1, 1989, with respect to the 
extension of the jurisdiction of the commissioner of public 
safety to intrastate liquefied petroleum gas facilities and the 
transportation of liquefied petroleum gas associated with these 
facilities.  Section 23 is effective January 1, 1989. 
    Approved April 24, 1988