US pipeline operators entered 2003 under a new and far stricter safety regime after President George W. Bush signed into law on Dec. 17 the Pipeline Safety Improvement Act of 2002.
The measure updates earlier legislation by expanding education programs, tightening federal inspection and safety requirements, and boosting civil penalties against pipeline operators who do not obey the new rules.
The legislation requires that pipelines be inspected within the next 10 years to prevent leaks and ruptures. Pipelines in more urbanized areas are to be checked within the first 5 years of enactment. All pipelines must be re-inspected every 7 years following the first 10-year interval specified under the legislation.
Natural gas pipeline operators also must adopt integrity-management programs for pipeline operations in "high-density areas" within 2 years even if the Department of Transportation fails to move forward with comparable regulations, said the Washington-based law firm Van Ness Feldman in a recent analysis of the new legislation.
The new law applies to both interstate and intrastate pipelines as well as to local distribution companies but is administered by states to the extent that state regulations satisfy federal standards. The legislation also applies to gathering facilities in populated areas.
The 2002 Act does not, however, affect specific provisions of an earlier 1994 law that covers LNG facilities, Van Ness said.
Spurred by a series of high-profile accidents in New Mexico and Washington, industry worked with Congress and federal regulators to strengthen federal rules, including the authority of the DOT's Office of Pipeline Safety, the regulatory body that oversees 200,000 miles of oil and petroleum pipelines within the US.
Specific provisions
Key provisions of the bill include the following:
- Required qualification programs for key pipeline operating personnel.
- $100 million government-run research and development program on pipeline safety.
- Stronger "One Call," the national system designed to deter what industry says is the leading cause of pipeline incidents, damage by third-party excavators.
Civil penalties also are stricter under the legislation. Fines are now $500,000, instead of $25,000, for each facility operator failure to: (1) mark accurately the location of pipeline facilities in the vicinity of a demolition, excavation, tunneling or construction; or (2) comply with safety standards, prepare and carry out an inspection and maintenance plan, allow access to records, or allow required entries or inspections.
The bill also increases the maximum civil penalty for a related series of violations from $100,000 to $1 million.
And, the legislation includes whistle-blower protection. Pipeline operators may not fire or take "adverse action" against an employee for specified actions relating to pipeline safety. This includes providing information to the employer or the federal government, Van Ness said.
And before June 17, 2003, pipeline operators must give DOT information on the locations of their pipeline facilities for use in the National Pipeline Mapping System.
Reactions
The new legislation reinforces many of the aggressive safety steps that have already been taken by the industry in recent years and by regulators on the federal, state, and local levels, said the Association of Oil Pipe Lines.
"Historically, oil pipelines are by far the safest way to transport the fuel our nation depends on, safer than trucks or trains," said AOPL executive director Ben Cooper. "Over the last three decades, our partnership with regulators has resulted in a 50% reduction in pipeline incidents. Today, for every barrel of oil shipped 1,000 miles, less than a teaspoon is lost," he said.
Bill sponsors
During the debate over the proposal last fall, bill sponsors argued that ongoing industry and federal efforts were insufficient to protect against future accidents. They said legislation was still needed to ensure safety, especially in areas that have become more densely populated than when pipeline-safety legislation was considered by Congress last time, in the mid-1990s.
"President Bush's signing of the Murray-McCain bill means significant new improvements in training and qualifications of our pipeline personnel, in inspection and prevention practices, in tough penalties for people who violate these standards, and in the states' abilities to expand their safety activities," said Sen. Patty Murray (D-Wash.) who, with Sen. John McCain (R-Ariz.), played a key role in pushing the bill through a lame-duck session of Congress late last year.
"After three long years of work, we have finally enacted legislation that will protect American families and communities and will require all of America's pipelines to be inspected regularly," said Murray.