SHARP'S PIPELINE BILL DRAWS GAS INDUSTRY FIRE

June 10, 1991
U.S. gas industry spokesmen have complained that many elements of a pipeline safety bill pending in the House of Representatives are unnecessary. Their comments came at a House energy and power subcommittee hearing. Rep. Phil Sharp (D-Ind.), subcommittee chairman, said during 1971-86 U.S. pipeline failures caused an average of 11 deaths and 48 injuries/year and an average cost of $25 million/year in property damage, product loss, and cleanup charges.

U.S. gas industry spokesmen have complained that many elements of a pipeline safety bill pending in the House of Representatives are unnecessary.

Their comments came at a House energy and power subcommittee hearing. Rep. Phil Sharp (D-Ind.), subcommittee chairman, said during 1971-86 U.S. pipeline failures caused an average of 11 deaths and 48 injuries/year and an average cost of $25 million/year in property damage, product loss, and cleanup charges.

Sharp has filed a bill requiring the Transportation Department to include protection of the environment as an equal objective in administering the two pipeline safety acts, increase inspection requirements, and expand them to more pipelines. It requires pipeline operators, when feasible, to use state of the art technology, including excess flow valves and smart pigs."

Rep. Curt Weldon (R-Pa.) argued for the use of excess flow valves, which shut off gas in distribution systems when a line experiences a surge in pressure.

Rep. Bernard Dwyer (D-N.J.), said the federal government should require remote controlled emergency flow restricting devices on all trunklines.

ADMINISTRATION VIEWS

Travis Dungan, chief of the Department of Transportation research and special programs administration, said, "A major challenge ahead is the general aging of the pipeline infrastructure. Aging has the potential to cause leaking or rupture due to the compounding of various time-dependent effects.

"It has been estimated that there will be 15,000-35,000 miles of gas and hazardous liquid pipelines requiring some type of upgrading in the next few years."

He urged Congress to increase the maximum civil penalty to $25,000/day/violation from $10,000.

Dungan opposed Sharp's bill, saying it would elevate to legislation many issues DOT is covering through existing rules.

"Additionally," Dungan said, "we object to requirements for the department to undertake development of an internal inspection device to detect seam failures. We believe private sector research is proceeding in this area."

George Reagle, director of the National Transportation Safety Board's office of surface transportation safety, said excess flow valves, costing about $20 each, are reliable and can improve the safety margin in gas lines.

INDUSTRY OPINIONS

Mike Panatier, vice-president of Phillips 66 Natural Gas Co., testified on behalf of the Natural Gas Supply Association.

Panatier objected to a provision in the Sharp bill that could extend new rules to gathering lines. He said gathering lines do not present a risk to public safety because most are in rural areas where there is little or no exposure to the pubic.

Joe Swift, president of Sun Pipe Line Co., spoke for the American Petroleum Institute and the Association of Oil Pipe Lines. He said, "The industry has worked diligently to advance pipeline technology and operating practices that affect safety.

"The last 40 years have seen great improvements in corrosion control, quality of pipe and equipment used in pipelines, integrity testing methods, and computer instrumentation for pressure control and leak detection."

He noted, "The largest single cause of pipeline accidents has been third party-excavator-damage, an activity over which the operator has limited control."

Swift said the oil industry supports many aspects of the Sharp bill, such as protecting the environment, requiring certification of pipeline personnel, giving DOT more discretion in issuing regulations, and pipeline integrity testing.

But he said smart pigs are not a panacea in pipeline damage control, and many lines can't use internal inspection devices because of multidiameter pipe, odd pipe sizes, internal coatings, radius of bend, and the absence of launching and receiving traps. He said low pressure lines and gathering systems should be excluded from regulation because of their low risk.

John Kobasa, ANR Pipeline Co.'s vice-president of operations, testified for the Interstate Natural Gas Association of America.

He said current laws are more than adequate to regulate natural gas pipelines and there is no need to make the Office of Pipeline Safety assume environmental duties.

Kobasa said requiring use of smart pigs in high density population areas is unnecessary, as is a $1 million authorization for smart pig development.

Hugh McCastlain, executive vice-president of Arkansas Louisiana Gas Co., testified for the American Gas association. He said AGA is concerned about the costs, feasibility, and minimal benefits of requiring distributors to install excess flow valves in service line.

"The effectiveness of excess flow valves is site specific," he said. "Prevention of third party accidents is a more cost effective approach."

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