Pipeline Law

Pipeline Law

Welcome to the Underground

Lawyers with the Hunton & Williams LLP Pipeline Practice group have been providing legal support to America’s oil and gas pipeline industry for a quarter century. During that time, they have gained extensive experience on a wide variety of issues of concern to the industry, the regulatory agencies and the public. Hunton & Williams’ pipeline group also has extensive geographical reach in this practice area, with matters in almost all 50 states. Our goal is to help solve problems, not prolong them, and our experience helps to achieve timely resolution.

Federal Court Remands Corps Environmental Analysis for Dakota Access Pipeline

Posted in Environmental

Despite oil already flowing through the pipeline, federal litigation involving the controversial Dakota Access Pipeline (DAPL) took another turn last week when partial summary judgment was granted to tribes challenging the adequacy of the US Army Corps of Engineers’ review of DAPL under the National Environmental Policy Act (NEPA) and other statutes. Two tribes, the Standing Rock Sioux Tribe and the Cheyenne River Sioux Tribe, filed suit in July 2016 attempting to block construction of the last remaining segment and operation of DAPL. As sometimes is the case, agency approvals came faster than the court’s opinion, and without a stay of proceedings DAPL began operating in early June 2017. Having granted partial summary judgment, the court did not require pipeline operations to cease, instead delaying the question of an appropriate remedy until after further briefing by the parties.

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Volatility of Petroleum Products: Deadline Extended for Submitting Comments on PHMSA ANPRM

Posted in Administrative Rulemaking, PHMSA, Policy

PHMSA is extending the deadline for comments due today (March 21, 2017) on the Advance Notice of Proposed Rulemaking (ANPRM) issued on January 18, 2017.   The new deadline for comments is May 19, 2017.  The ANPRM was issued in response to a petition for rulemaking filed by state of New York, enquiring about risks posed by transport of petroleum by means other than pipeline, specifically by rail, and whether to establish vapor pressure standards for the transportation of crude oil.  The ANPRM requested comments on whether a national standard should be developed for vapor pressure of crude oil, including the potential safety benefits and costs of establishing a standard.  The intent of the ANPRM is to evaluate measures to reduce risk of fire and explosion in non-pipeline transport of crude oil such as a national vapor pressure standard and, if so, adopt appropriate threshold recommendations for the standard.

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Texas Challenges PHMSA Underground Natural Gas Storage Rule

Posted in Administrative Rulemaking, Natural Gas, PHMSA, Pipeline Safety Act

The state of Texas and the Texas Railroad Commission have petitioned the Fifth Circuit Court of Appeals to review PHMSA’s interim final rule regulating underground natural gas storage facilities.  As required by the Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2016, PHMSA published an interim final rule last December establishing minimum federal safety standards for underground natural gas storage facilities, which became effective in January.  Such facilities have come under increased scrutiny since the 2015 Aliso Canyon storage field leak that lasted almost four months.

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Commerce Department Attempts to Clarify Executive Directive to Use U.S. Pipe

Posted in Construction & Design, PHMSA, Pipeline Safety Act, Policy

The Department of Commence published a request for comments related to implementation of the January 24, 2017 Executive Memorandum regarding “Construction of American Pipelines.”  The short Memorandum directs the Secretary of Commerce to “develop a plan under which all new pipelines, as well as retrofitted, repaired, or expanded pipelines, inside the borders of the United States, including portions of pipelines, use materials and equipment produced in the United States, to the maximum extent possible and to the extent permitted by law.”  The Commerce Department is directed to submit its Plan to the President within 180 days, or by July 23, 2017.  The Memorandum also notes that “produced in the United States” excludes manufacture of any components or any assembly done abroad, but provides no further clarification on applicability.

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Advisory on Deactivation of Integrity Management Threats

Posted in Administrative Guidance, Integrity Management, Natural Gas, PHMSA, Recordkeeping

A new Advisory on deactivation of threats for gas transmission lines was issued by PHMSA on March 15, 2017 (to be published in the March 16, 2017 Federal Register).  Amidst uncertainty about the fate of various proposed and final rules issued by PHMSA and other federal agencies under the new Administration due to the Regulatory Freeze Executive Memorandum of January 20, 2017 and other executive orders, PHMSA’s issuance of this clarifying guidance regarding minimum criteria for deactivation of integrity threats is notable.

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Fate of Extensive Liquid Pipeline Final Rule Uncertain

Posted in Administrative Rulemaking, Integrity Management, Operation & Maintenance, PHMSA

During the last week of the Obama Administration, PHMSA released a pre-publication copy of the hazardous liquid pipeline safety final rule, which has been six years in the making.  The rulemaking was intended to address issues raised by several sources: high profile pipeline accidents; directives contained in amendments to the Pipeline Safety Act; and recommendations from the NTSB and GAO.  The final rule would implement many significant and expansive inspection and reporting requirements, including periodic integrity assessments and leak detection for pipelines outside of high consequence areas (HCAs), inspections of pipelines after extreme weather events, expanded reporting, and more stringent integrity management repair and data collection requirements.

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New Executive Order Requires Agencies to Withdraw 2 Regulations for Every 1 Proposed

Posted in Administrative Guidance, Administrative Rulemaking, PHMSA, Pipeline Safety Act, Policy

President Trump signed another Executive Order (EO) on January 30, 2017, entitled Reducing Regulation and Controlling Regulatory Costs.  The new EO, applicable to the entire Executive Branch, including all federal administrative agencies, makes a straightforward directive: “…for every one new regulation issued, at least two prior regulations be identified for elimination.”  The Order goes on to state that the costs associated with any new regulations may not exceed the savings realized by repealing at least two prior regulations (“the total incremental cost of all new regulations…shall be no greater than zero.”).

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Pipelines and Infrastructure Projects are Front and Center in Administration’s First Days

Posted in Construction & Design, Environmental, Policy

In his first days as President, Donald Trump has issued several directives to expedite pipeline and energy infrastructure projects and bring pipe steel manufacturing jobs back to the U.S.   Through an executive order, the President directed federal agencies to expedite environmental reviews and approvals for all infrastructure projects, with emphasis on “high priority” projects such as pipelines.  In addition, the President issued two executive memoranda to renew and expedite the approval of two oil pipeline construction projects, the Keystone XL Pipeline and the Dakota Access Pipeline (DAPL).  In another executive memo, Trump directed the Commerce Department to prepare a plan under which all new and repaired pipe used in the U.S. would be manufactured stateside.  In issuing these presidential directives, the new administration has furthered prior commitments to support pipeline infrastructure and domestic jobs, but whether these directives can truly expedite the necessary remaining approvals for Keystone XL and DAPL remains uncertain in light of limited consequence of these executive directives (beyond the executive branch) and the inevitable legal challenges.

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Regulatory Freeze issued by New Administration

Posted in Administrative Guidance, Administrative Rulemaking, Integrity Management, PHMSA, Pipeline Safety Act

On the first day of the new Trump Administration, Chief of Staff Reince Priebus issued a Memorandum to the heads of all Executive Departments and Agencies, requesting that all federal agencies suspend transmittal of any new proposed or final rules to the Office of the Federal Register (OFR) until the new Administration’s Agency appointees have an opportunity to review such proposals. The Memo also asks all agencies to “immediately withdraw” any proposed or final regulations that have been sent to the OFR but not yet published in the Federal Register (there is always at least a several day delay between the time that new rules are sent to OFR and then published in the Federal Register). In addition, the Memo requests that Agencies postpone the effective date (by at least 60 days) of any rules that have been published in the Federal Register but have not yet become effective.

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Concerns about HCA Identification Methods Prompts Advisory

Posted in Administrative Guidance, Integrity Management, Natural Gas, Operation & Maintenance, PHMSA, Pipeline Safety Act

Citing concerns that intrastate and small gas transmission pipeline operators may not be accurately identifying high consequence areas (HCAs) as part of their integrity management programs (IMP), PHMSA issued yet another advisory to the industry on December 12, 2016.  In its seventh advisory issued this year, PHMSA explains the need for further guidance on the methodology based on recent inspections as well as a Safety Recommendation issued by the National Transportation Safety Board (NTSB) in 2015 (NTSB Recommendation P-15-06, issued in conjunction with the Board’s Safety Study of implementation of gas transmission integrity management rules).

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