Criminal Charges Issued Against Pacific Gas & Electric

On April 1, a federal grand jury returned an indictment charging Pacific Gas and Electric Company with criminal violations of the Pipeline Safety Act.  The indictment alleges knowing and willful violations of the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) gas integrity management regulations and other rules concerning recordkeeping, data gathering and integration, threat identification, assessment tool selection, and risk prioritization.  The charges flow from an investigation into the 2010 San Bruno incident.  The twelve count indictment seeks penalties of approximately $6 million.  No individuals have been charged.  The indictment is here.

White House Notes PHMSA’s Efforts to Help Reduce Methane Emissions

On March 28, the White House released the Administration’s “comprehensive interagency strategy to cut methane emissions” (Methane Strategy), listing new actions the Administration is taking or will take to reduce methane emissions, improve public health and safety, and provide more energy to the nation.  The Methane Strategy includes regulatory actions and voluntary incentive programs that federal agencies will use to address methane emissions.  Of note, the Methane Strategy outlines efforts that PHMSA takes to monitor natural gas pipeline systems and to ensure that leaks and accidental releases are minimized or eliminated, stating that PHMSA will continue to require that pipeline operators take steps to eliminate leaks and prevent accidental methane releases and evaluate the progress of states in replacing cast iron pipelines.

PHMSA Activities

PHMSA seeks comments on numerous changes to OPID Assignment Request and Operator Registry Notification forms.  On March 31, PHMSA issued a notice requesting comments on numerous proposed changes to the OPID Assignment Request form (PHMSA F 1000.1) and Operator Registry Notification form (PHMSA F 1000.2). Proposed changes to the OPID Assignment Request form include collecting state-specific pipeline mileage and facility descriptions, collecting more specific information about ownership structure of gas distribution operators, and aligning the commodity choices for gas distribution and transmission with those in the annual and incident reports.  Proposed revisions to the Operator Registry Notification form (filed to reflect facility construction and changes in ownership or operator) include reducing the number of notification types, modifying the information required when the operating entity changes, collecting data about pipeline miles separate from non-pipeline facilities, and collecting state-specific pipeline mileage and facility descriptions.  PHMSA intends to request that the Office of Management and Budget approve the revised information collection.  Comments are due May 30.  The revised redline of the Operator Registry Notification form with instructions is here. The revised redline of the OPID Assignment Request form with instructions is here.

PHMSA offers grants to universities for pipeline safety research.  On March 31, PHMSA announced that its Competitive Academic Agreement Program is accepting applications from colleges and universities for grants to fund research into innovative solutions to pipeline corrosion and other known pipeline integrity challenges.  PHMSA expects to award up to a total of $500,000 in grants.  The deadline for applying is May 9.

PHMSA proposed penalties in 2013 set record high while serious pipeline incidents were at all-time low. On April 7, PHMSA announced that, in 2013, it proposed a total of $9.7 million in civil penalties for safety violations, the highest annual amount of proposed penalties in the agency’s history.  PHMSA stated that, during 2013, it initiated 266 enforcement cases against pipeline operators.  PHMSA also reported that, since 2009, the industry has experienced 45 percent fewer serious pipeline incidents, i.e., those resulting in fatalities or major injuries. 

PHMSA to host webinar on odorant effectiveness.  On April 22, at 2:30 PM (EST), PHMSA will host a webinar to disseminate the results of its recent research on odorant effectiveness.  Registration is not required.

Updates from Select States

New North Dakota rules for gathering lines are effective.  On April 1, new rules went into effect providing the North Dakota Industrial Commission, Department of Mineral Resources, Oil and Gas Division with additional authority to regulate gathering lines. 

Industry Updates

Deadline for commenting on draft API Pipeline Safety Management Standard is April 11, 2014.  The deadline for submitting comments on the draft version of API Recommended Practice 1173, Pipeline Safety Management System Requirements (1^st Edition, February 2014) (API RP 1173) is April 11.  Developed in response to a safety recommendation issued by the National Transportation Safety Board in the wake of the July 2010 Marshall, Michigan pipeline failure, API RP 1173 provides guidance to operators for developing and maintaining pipeline safety management systems. 

For Your Interest:  The Common Ground Alliance February/March report is here.