Deepblue-
As 1969 grad pointed out, water free is an important consideration. Pipelines are often tested with kerosene or diesel. See B31.4 437.4.1(c), API 1110 paragraph 3.3, and 49CFR195.306. In my expereince, the state fire marshall is notified a day or two prior to conducting the test.
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From the CFR:
[Code of Federal Regulations]
[Title 49, Volume 3]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR195.306]
[Page 180]
TITLE 49--TRANSPORTATION
CHAPTER I--RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION, DEPARTMENT OF
TRANSPORTATION (CONTINUED)
PART 195_TRANSPORTATION OF HAZARDOUS LIQUIDS BY PIPELINE--Table of Contents
Subpart E_Pressure Testing
Sec. 195.306 Test medium.
(a) Except as provided in paragraphs (b), (c), and (d) of this
section, water must be used as the test medium.
(b) Except for offshore pipelines, liquid petroleum that does not
vaporize rapidly may be used as the test medium if--
(1) The entire pipeline section under test is outside of cities and
other populated areas;
(2) Each building within 300 feet (91 meters) of the test section is
unoccupied while the test pressure is equal to or greater than a
pressure which produces a hoop stress of 50 percent of specified minimum
yield strength;
(3) The test section is kept under surveillance by regular patrols
during the test; and
(4) Continuous communication is maintained along entire test
section.