In the wake of a pipeline release, beyond notifying all required federal and state government agencies, an operator should keep in mind another important notification—its insurer. Most insurance policies contain mandatory conditions, including notice of claims and cooperation with the insurer. Failure to comply with these conditions may result in a denial of coverage. The
The issuance of a Corrective Action Order (CAO) can have significant and ongoing consequences for a pipeline operator. A powerful enforcement tool typically associated with the shutdown of a pipeline facility, a CAO often means numerous compliance obligations and significant disruption of normal operations, not to mention the stigma accompanying a CAO’s pre-requisite finding that continued operation of a pipeline facility would be “hazardous to life, property, or the environment.” 49 U.S.C. 60112(a)(1).
Continue Reading Corrective Action Orders: Targeted Use, Expansive Requirements
The NTSB held a hearing and issued a synopsis of its investigation into the San Bruno rupture that occurred on September 9, 2010, including 28 findings and 29 new recommendations directed to DOT, PHMSA, CPUC, and PGE. The NTSB is currently making final revisions to its report. Click here to view the synopsis and summary…