PipelineLaw.com

World demand for oil and natural gas has never been higher. In supplying the world's energy needs, pipeline companies face unprecedented environmental and regulatory challenges. As the country expands its energy infrastructure, the safe and reliable delivery of oil and gas via the nation's pipelines has come under intense scrutiny.

The Hunton & Williams LLP pipeline practice has national experience resolving the environmental and enforcement issues that arise during the construction, permitting, operation and maintenance of oil and gas pipelines. Leveraging the talent and experience of more than 75 environmental lawyers, and strong working relationships with the federal and state agencies that regulate pipeline activities, Hunton & Williams addresses its clients' evolving legal and business needs as efficiently and effectively as possible.

What's New

• May 4, 2012 - PHMSA Issues Advisory Regarding MAOP/MOP Records Verification. In response to NTSB Recommendations and the 2012 amendments to the Pipeline Safety Act, PHMSA has issued guidance to operators to ensure that the MAOP and MOP of all liquid and gas pipeline segments are supported by records that are "traceable, verifiable and complete." This Advisory marks the first time that PHMSA has issued guidance with regard to the meaning of this standard that originated with the NTSB and was restated in a PHMSA Advisory issued in January 2011. Unfortunately, it is still far from clear how an operator must comply with the standard. While acknowledging that "other types of records may be acceptable and that certain state programs may have additional requirements," PHMSA provides limited additional guidance with regard to the meaning of the terms "traceable," "verifiable" and "complete." Beginning in 2013, as directed by the 2012 amendments to the Pipeline Safety Act, PHMSA will require gas operators to submit data regarding pipeline mileage with and without verifiable records in their annual reports. This information will then be used by the Agency to develop additional guidance and/or rulemakings with regard to: (1) how operators will be required to bring their gas and liquid pipelines without verifiable records into compliance for the entire mileage of the pipeline; (2) how operators will be required to reestablish MAOP; and (3) whether to eliminate the grandfather clause under 192.619. Click here for the Notice to be published in the May 7, 2012 FR.
• April 12, 2012 - PHMSA Proposes Revisions to Incident Report and Annual Report Forms, Including MAOP Data Collection.  In response to NTSB Recommendations and the 2012 amendments to the Pipeline Safety Act, PHMSA is preparing to request OMB approval for revisions to its Incident Report and Annual Report forms for transmission and gathering pipeline systems.  With regard to both gas and liquid Incident Report forms, PHMSA proposes revisions to collect additional information regarding incidents involving girth weld failures.  With respect to gas transmission and gathering system Annual Reports, PHMSA proposes collecting the following information related to MAOP:  pipeline segments for which an operator is unable to verify MAOP; the methodology used to determine MAOP of gas transmission pipelines; miles of pipelines which have not been subjected to a post-construction hydrostatic test of at least 125% MAOP; and miles of pipelines which are not able to accommodate the passage of instrumented internal inspection devices.  With regard to MAOP verification, PHMSA indicated that it would be informing operators of their responsibilities and clarify what it considers to be a "verifiable record" in an upcoming Advisory Bulletin.  Finally, PHMSA proposes the following additional revisions to the gas transmission Annual Report forms:  collecting pipeline mileage by material type, adding a landfill gas as a commodity option, adding composite pipe as a material type, removing certain sections of limited value, and collecting the number of anomalous conditions eliminated by pipe replacement and abandonment.  Comments on these proposed revisions are due by June 13, 2012.  Click here for the Notice (to be published in the April 13, 2012).
• April 2, 2012 - PHMSA Issues NPRM regarding pipeline damage prevention programs. PHMSA proposes to amend the damage prevention regulations to (1) establish criteria and procedures for determining the adequacy of state pipeline excavation damage prevention enforcement programs; (2) establish an administrative process for making adequacy determinations; (3) establish the Federal requirements PHMSA will enforce in states with inadequate excavation damage prevention enforcement programs; and (4) establish the adjudication process for administrative enforcement proceedings. NPRM, 77 Fed. Reg. 19800 (April 2, 2012). As required under the PIPES Act of 2006, PHMSA proposes to establish review criteria for state damage prevention law enforcement programs in order to conduct civil enforcement against excavators for violating Federal excavation standards. Comments are due by June 1, 2012. Click here for the NPRM. This proposed rulemaking is consistent with Section 3 of the 2012 amendments to the Pipeline Safety Act by limiting exemptions for excavators. See 49 U.S.C. 6103(a), amended by Pub. L. 112-90 (2012).  

www.pipelinelaw.com