Some say the long-awaited pipeline safety reauthorizationlegislation that was unveiled by the Clinton administration earlierlast week is a pipeline’s worst nightmare come true. It imposestougher safety standards, gives the Department of Transportation(DOT) more inspection muscle, quadruples the amount of civilpenalties for violators, enhances criminal enforcement andstrengthens the role of states in inspecting pipelines.

The DOT’s bill, the Pipeline Safety and Community Protection Actof 2000, applies to interstate oil and natural gas pipelines. Itauthorizes $30.1 million for pipeline safety activities for fiscalyear 2001, and similar amounts for 2002 through 2004. This is about$10 million more than the current funding for pipeline safety.

Of the $30 million, more than half ($17 million) is earmarkedfor grants for state pipeline safety programs during fiscal year2001. The DOT bill proposes similar funding levels for fiscal years2002 through 2004. With this endowment, states would be able tosupplement federal oversight of interstate pipeline operations,including monitoring new construction and investigating accidents.

Critics of the administration’s pipeline safety record applaudedthe measure, which was introduced in the Senate last week by Sens.Ernest F. Hollings (D-SC) and Paul S. Sarbanes (D-MD). Sen. PattyMurray (D-WA), who authored a pipeline safety bill of her ownfollowing a pipeline accident in Bellingham, WA, last year thatclaimed three lives, called the bill “constructive.” The DOT bill,which was developed in conjunction with Murray and her staff,”includes many of my priorities.”

Not surprisingly, gas pipelines aren’t big fans of the DOTmeasure, S. 2409. “It’s regulatory overkill in the extreme,” said apipeline source. Pipelines especially don’t like “the bill’sopen-ended language that gives states authority to regulate pipes”with respect to safety.

Pipelines intend to lobby Congress to “get a bill that addressesthe legitimate problems [involving safety] without overreacting,”he said. “We also want to make sure [Congress understands] that thegas industry already does a great deal” on safety. He estimated thegas pipeline industry spends about $3,500 per mile each year onensuring the safety of its lines.

The bill, if approved by Congress, would go into effect fornatural gas pipelines, as well as hazardous liquid pipelineslocated in sparsely populated areas, within two years of enactment.But it would take effect in December of this year for hazardousliquid operators of more than 500 miles that are located in denselypopulated or environmentally sensitive areas.

The initiative calls for pipelines to establish comprehensivesafety programs to assess the conditions of their systems.Specifically, the DOT initiative requires: 1) internalinspections, pressure testing or other best achievable technologyperformed on a periodic basis; 2) the use of clearly definedcriteria for analyzing the inspection or testing; 3) immediaterepair of any problems found; and 4) the use of measures (such asemergency-flow restricting devices and leak detection) that preventand mitigate the consequences of a release of gas, hazardous liquidor hazardous substance.

The measure further clarifies the authority of DOT SecretaryRodney E. Slater to obtain records, interview persons performingsafety-sensitive functions for pipeline operators, as well as toinspect pipelines. Also, the initiative increases by four-fold themaximum civil penalties for pipeline safety violators, and itauthorizes, for the first time, the assessment of civil penaltiesin successful lawsuits brought by private citizens. It furtherstates that excavators who “knowingly and willfully” disregard theone-call notification requirements will be prosecuted.

The DOT legislation seeks to enhance criminal enforcement of thepipeline statute. Additionally, it includes a “right-to-know”provision requiring pipeline operators to provide public and localcommunities with access to pipeline safety information, includingincident reports and safety-related condition reports.Otherinformation, such as pipeline maps and pipeline safety programs,would be furnished to state and local emergency responseauthorities.

DOT also contemplates the creation of a national depository forinformation related to pipeline failures. Lastly, the bill supportsthe establishment of research partnerships between industry andacademia to develop new inspection tools and technologies. SusanParker

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