Safety

California regulators on Thursday approved nearly $950 million in increased rates to support Pacific Gas and Electric Co.’s (PG&E) natural gas storage and transmission pipeline operations.

A pipeline safety bill is headed to President Obama’s desk for his signature after the U.S. Senate agreed to a House amendment to the measure by unanimous consent late Monday.

The U.S. House of Representatives passed by a voice vote late Wednesday its version of a pipeline safety bill, which includes changes to the Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA).

California Public Utilities Commission(CPUC) safety staff on Monday levied a $2.25 million citation against Sempra Energy’sSouthern California Gas Co. (SoCalGas) for 45 instances of failing to promptly correct deficiencies found in its corrosion control in parts of its natural gas pipeline system. During two gas safety inspections last year, the CPUC’s Safety and Enforcement Division (SED) found that SoCalGas failed to fix cathodic protection packages for periods in some cases of more than three years. Cathodic protection helps prevent corrosion. Federal regulations require gas operators to test systems at least once each year, with intervals not exceeding 15 months, to determine whether the protection is adequate. SED found numerous SoCalGas cathodic protection packages to be deficient for intervals exceeding federal and state standards.

California Public Utilities Commission(CPUC) safety staff on Monday levied a $2.25 million citation against Sempra Energy’sSouthern California Gas Co. (SoCalGas) for 45 instances of failing to promptly correct deficiencies found in its corrosion control in parts of its natural gas pipeline system. During two gas safety inspections last year, the CPUC’s Safety and Enforcement Division (SED) found that SoCalGas failed to fix cathodic protection packages for periods in some cases of more than three years. Cathodic protection helps prevent corrosion. Federal regulations require gas operators to test systems at least once each year, with intervals not exceeding 15 months, to determine whether the protection is adequate. SED found numerous SoCalGas cathodic protection packages to be deficient for intervals exceeding federal and state standards.

In a story published March 17 in NGI’s Daily Gas Price Index, “Pipeline Safety Bill Advances With Lawsuit Provision, For Now” (see Daily GPI,March 17), which covered Wednesday’s advance of a draft bill to reauthorize the Natural Gas Pipeline Safety Act, the story and headline both made reference to a “Section 15.” In early March, that provision would have allowed private citizens to sue the Pipeline and Hazardous Materials Safety Administration (PHMSA) for perceived “failure to perform and non-discretionary duty…” (see Daily GPI, March 2). But lawmakers subsequently struck that provision and used the same number for a new provision granting the Secretary of the Department of Transportation (DOT) the power to impose emergency orders. Also, comments made by Don Santa, CEO of the Interstate Natural Gas Association of America; and Dave McCurdy, CEO of the American Gas Association, were incorrectly correlated to the bill’s advance. The comments actually addressed newly proposed safety regulations by PHMSA. NGI regrets the errors.

Several officials with the oil and gas industry told the House Energy and Power Subcommittee on Tuesday that a proposal to reauthorize the Natural Gas Pipeline Safety Act should not include language giving private individuals the right to sue the Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA).

Natural gas storage facilities are facing new pressure after the U.S. Department of Transportation (DOT) pipeline unit issued a safety advisory Tuesday for operators to immediately inspect their facilities. Southern California Gas Co. (SoCalGas), wrestling with the three-month-long Aliso Canyon storage well leak, also is facing more lawsuits.

New safety regulations for hazardous liquid pipelines proposed by the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) would cost more than regulators’ estimate, according to comments filed late last week by the Gas Processors Association (GPA).