November 2014

The development of new oil and gas in various shale plays around the U.S. has led to a rise in the number of transfers and acquisitions of pipeline assets.  Prudent operators have always requested and reviewed documentation as part of their due diligence in making acquisitions, but it is becoming increasingly important that certain records be located during due diligence or factored into the transaction if such records are lacking and must be recreated.  Decision makers involved in pipeline acquisitions may only involve pipeline safety managers or counsel late in the process, without sufficient time to include the issue of records as part of the transaction.  That can be a costly mistake.
Continue Reading Focus on Records During Acquisitions, or Risk Significant Liabilities

PHMSA regulations require operators to perform random drug testing on a certain percentage of their “covered employees” (i.e. employees, contractors, and contractor employees who perform regulated operations, maintenance, or emergency response functions on a pipeline or LNG facility, 49 C.F.R. Part 199.3).  49 C.F.R. Part 199.105(c).  The Agency publishes the minimum percentage of covered employees subject to random drug testing each year, with the percentage to become applicable on January 1 of the calendar year following publication.  Id.  According to a recent Federal Register Notice, PHMSA has determined that the minimum random drug testing rate for covered employees will remain at the current rate, 25 percent, during calendar year 2015.
Continue Reading PHMSA Issues Notice of Random Drug Testing Annual Percentage Rate for Calendar Year 2015