TERMINALS, PIPELINES HANDLING DESIGNER FUELS NEED CHECKLIST

Pipeline and terminal operators in the U.S. face a myriad of issues in handling so called "designer" fuels, such as reformulated or oxygenated fuels made for specific areas of the country or, in the case of diesel fuels, for specific uses as a result of recent federal mandates At the most recent API Pipeline Conference in Dallas, John L. Elliott, Tosco Refining Co.'s manager of terminal operations, noted that how these fuels affect terminal operations will vary depending on whether the

Sept. 13, 1993

3 min read

At the most recent API Pipeline Conference in Dallas, John L. Elliott, Tosco Refining Co.'s manager of terminal operations, noted that how these fuels affect terminal operations will vary depending on whether the terminal is proprietary with segregated tankage or "for hire" with commingled tankage.

Overall, product fungibility will be decreased, he said, which will require capital improvements by operators to maintain throughput rates. And increasing regulatory compliance will require that each terminal review its staffing levels.

MAKING ADJUSTMENTS

Elliott offered pipeline and terminal operators the following checklist to help adjust to life under the 1990 Clean Air Act.

Fungibility: Easily the issue with the most potential for fundamentally changing terminal operations, the question of fungibility will be affected by whether the facility is segregated or commingled, proprietary or for hire, or a branded or unbranded business.
Tank utilization: Is there enough tankage? Is it of convenient size for changing conditions? Are piping changes required? New permitting? Will the tank turns generate a reasonable return if the facility tries to provide for all grades?
Tank bottoms: More product switches will likely be called for. Will regulations allow pumping out below a floating roof? Will they allow the bottom to be drained dry? Contamination problems are likely to increase.
Rack blending: Will rack blending release tankage that can be utilized more efficiently in a mid-grade or oxygenated fuel? Is the facility a sequential or ratio system?
Additive systems: Does the facility use generic or proprietary additives? A community system or segregated?
Reliability will have major effect on rack down time. Is the record keeping automated or manual? Paper trails are useful in proving compliance. Will the presence of toxic components in the additive affect the permitting process?
Equipment: Is the facility's existing equipment compatible with the new products? What are floating roof, vapor-recovery requirements? Will new seals, linings, and fire systems be required?
Testing: What new equipment will be required to comply with future quality assurance programs? What about additional or new Rvp and phenolphthalein testing?
Training: Who will set up procedures to handle new products and equipment? Will there be in-house training or outside contractors available?
Oversight. A complete paper trail is essential for regulatory compliance protection and a key in defense, along with a quality-assurance program record keeping, under presumed liability. A substantial increase in paperwork burden is to be expected.
Multiple product grades, codes by season: Accounting and billing will affect code changes. Oxygenated/non-oxygenated, high and low Rvp characteristics will affect inventory season reconciliations.
Staffing: Additional staffing requirements cannot be ignored. Additive handling, testing, oversight and record keeping, and multiple product grades all indicate additional staffing considerations.