On March 20, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA) Office of Pipeline Safety issued a Notice to gas and hazardous liquid pipeline, underground natural gas storage and liquefied natural gas (LNG) facility operators, as well as PHMSA state partners, explaining that it will stay enforcement of certain PHMSA pipeline safety requirements in light of the President’s March 13, 2020, Declaration of National Emergency relating to COVID-19. The Notice acknowledges that operators may have limited personnel resources in light of the COVID-19 National Emergency and may need to take actions to meet ongoing operational and maintenance needs in a manner that “may not fully meet federal operator qualification (OQ), control room management (CRM), and employment drug testing requirements.”
Continue Reading PHMSA Issues Notice of Stay of Enforcement to Pipeline Operators

The Trump Administration’s recent executive order signals potentially significant changes to the regulatory landscape for domestic energy infrastructure generally and LNG in particular. Among the notable features of the order are the provisions directing US DOT to (1) update its 49 C.F.R. Part 193 regulations for LNG facility safety; and (2) issue regulations allowing LNG to be transported in approved rail tank cars.
Continue Reading LNG a Focus of Recent Executive Order

The issuance of FERC and PHMSA’s Memorandum of Understanding (MOU) last month potentially signals an improved review and authorization process for Liquefied Natural Gas (LNG) projects, but only time will tell how the MOU will work in practice and if it will achieve its stated goal of increasing efficiency and effectiveness of the application review process in a manner that will “reduce expenses for LNG project applicants . . . and the U.S. taxpayer.” Perhaps as an indication of things to come in the FERC/PHMSA partnership under the MOU, FERC issued environmental schedules for twelve pending LNG projects on the very day that the MOU was issued that, according to the Commission, reflect FERC’s “efforts in recent months to streamline its review process for LNG project applications,” including by entering the MOU with PHMSA.
Continue Reading FERC and PHMSA MOU Intended to Increase Efficiency and Efficacy of LNG Reviews

Earlier this month, the Pipeline and Hazardous Materials Safety Administration and the Federal Energy Regulatory Commission announced their intention to develop a memorandum of understanding (MOU) that would refine and reduce the permit application review process for proposed Liquefied Natural Gas (LNG) facilities. The announcement’s description of what the MOU will accomplish is consistent with the April 2018 multi-agency MOU: “The MOU will clarify each agency’s respective role in the permitting process for potential LNG projects, and implement procedures into the FERC’s authorization process that will leverage PHMSA’s safety expertise to evaluate potential impact to public safety.”

Continue Reading PHMSA and FERC Commit to Permitting Process MOU

Recent months have seen the appointment and confirmation of top posts in key pipeline regulatory agencies, the Federal Energy Regulatory Commission (FERC) and the Pipeline and Hazardous Materials Safety Administration (PHMSA). While developments are generally good news for the pipeline industry—in that they are likely to mean expeditious project approvals and a clear chain of command at the agencies—the past few weeks have seen interesting departures from past practices, as discussed in more detail below.
Continue Reading Recently Confirmed FERC and PHMSA Leaders Push Forward Pipeline Projects and Bring Renewed Focus to Pipeline Safety

In the aftermath of Hurricane Harvey, the devastating storm that recently swept through central Texas, both the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the U.S. Chemical Safety and Hazard Investigation Board (CSB) are urging special precautions to minimize the impact of the storm on pipeline and other energy infrastructure in the state.
Continue Reading PHMSA and CSB Urge Special Precautions in the Wake of Hurricane Harvey

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

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.
Continue Reading Texas Challenges PHMSA Underground Natural Gas Storage Rule

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

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.
Continue Reading Advisory on Deactivation of Integrity Management Threats