Some say the long-awaited pipeline safety reauthorizationlegislation that was unveiled by the Clinton administration earlierthis 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 of violatorsand strengthens 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 intheir respective states, including the monitoring of newconstruction and investigating accidents.

Critics of the administration’s pipeline safety record applaudedthe measure, which was introduced in the Senate this 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. “We are very concerned about the direction ittakes. It’s regulatory overkill in the extreme,” said a pipelinesource. Pipelines especially don’t like “the bill’s open-endedlanguage that gives states authority to regulate pipes” withrespect 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. There are about 200,000 miles ofgas pipelines in the U.S.

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 gas and hazardous liquid pipelines toestablish comprehensive safety programs to assess the conditions oftheir systems. Specifically, the DOT initiative requires: 1)internal inspections, pressure testing or other best achievabletechnology performed on a periodic basis; 2) the use of clearlydefined criteria for analyzing the inspection or testing; 3) repairof any problems found; 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. The secretary could impose penalties onoperators who refuse to produce records requested as part of anaccident investigation.

Also, the initiative increases by four-fold the maximum civilpenalties for pipeline safety violators, and it authorizes, for thefirst time, the assessment of civil penalties in successfullawsuits brought by private citizens. It further states thatexcavators who “knowingly and willfully” disregard the one-callnotification requirements will be prosecuted.

The DOT legislation seeks to enhance criminal enforcement of thepipeline statute. “An issue that the administration will continueto explore as the bill is considered is a possible change in thestatute’s standard for the ‘mental state’ necessary to demonstratecriminal culpability for statutory violations,” DOT’s Slater wrotein a letter to Vice President Al Gore last week.

Additionally, it includes a “right-to-know” provision requiringpipeline operators to provide public and local communities withaccess to pipeline safety information, including incident reportsand safety-related condition reports. Other information, such aspipeline maps and pipeline safety programs, would be furnished tostate and local emergency response authorities.

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.

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