Complying with pipeline safety regulations

Pipeline operators in the United States have 40 years of experience with federal pipeline safety regulation. Many states and municipalities also had regulations prior to the federal codes. This combination of federal and state laws gives operators over half a century of experience complying with governmental regulations for pipeline safety.

The majority of regulations are “performance” regulations. They prescribe the minimum levels that operators must achieve, but do not prescribe specific methods to achieve those goals. For the most part, operators have the flexibility to achieve the required results in a manner that is best suited to their operation.

Regardless of the methods employed, operators must meet, at a minimum, the level of safety prescribed by the regulation. It should be noted that these are “minimum” requirements, in fact the title for 49 CFR 192 reads “Transportation of natural and other gas by pipeline: Minimum federal safety standards.” There is no regulation that prohibits an operator from doing more than the minimum. Inspections and mitigative actions for Integrity Management may identify many areas where an operator will be do more than just the minimum activity that is required in other sections of the codes.  

The Pipeline and Hazardous Materials Safety Administration (PHMSA) is the federal agency tasked with developing and enforcing the federal regulations. Through a certification process, state pipeline safety agencies can accept the responsibility for the regulation and enforcement of intrastate systems. One of the key requisites of the certification is that the state adopt, at a minimum, the federal pipeline safety regulations as their own. States such as New York, Missouri, Kansas, and Texas, as well as many others include additional regulations to address issues of concern within their state.

With the adoption of pipeline safety regulations by the Department of Transportation and PHMSA comes the mandate that operators must be in compliance with the regulations. And that mandate means regulatory agencies must inspect for compliance and take action when non-compliance is found.  

The regulations in 49 CFR Part 190 Pipeline Safety Programs govern the inspection, enforcement and civil actions for pipeline safety inspections conducted by PHMSA. It defines the operator’s response options and required actions regarding notices, final orders and payment of civil penalties. Part 190 also includes the procedures for adopting new regulations, requests for interpretations, and special permit applications.  It is a code part all operators should have available in addition to the regulations specific to their type of pipeline system.

The actual on-site inspection is just one part of a complex process. It begins with PHMSA determining whether an inspection will cover standard or programmatic actions.  A standard inspection covers regulatory items such as periodic activities like leak surveys, valve inspections or other items with specific inspection intervals. A programmatic inspection will review plans, schedules and procedures that operators develop as required by the regulations such as integrity management, public awareness or operator qualification.

PHMSA will prioritize inspections by safety, compliance history, failures/incidents, and other issues of concern. Inspection schedules are established and operators are notified. Programmatic inspections often cover operations in several states or PHMSA regions, and may require the formation and coordination of an inspection team.

The basic question asked during an inspection is “What did an operator do (or not do) that is required by the regulations?” The best answer to this question is to have records of all activities applicable to complying with the regulations. Whether implied or explicit in the regulations, records are needed to answer this question. And operators are reminded that record keeping itself is often a requirement, such as in testing and corrosion control, and the lack of records can be a compliance issue on its own.

Following a record review field verification of the recorded compliance actions may take place. Retesting of corrosion control test points, repairs of system components, or observation of how procedures are implemented are all possible follow up actions.  Implementation of programmatic requirements will be reviewed as well.

Part 190 identifies four enforcement actions: §190.205—Warning letters; §190.207—Notice of probable violation (NOPV); §190.237—Amendment of plans or procedures (notice of amendment); and §190.233—Corrective action orders. A fifth action, §190.239 Safety Orders, was added in 2008 authorizing the Associate Administrator, OPS, to issue an order requiring an operator to take necessary corrective action when a pipeline integrity risk poses a threat to public safety.

Warning Letters are issued advising an operator of a condition that should be corrected or additional enforcement action may take place. They are generally issued for items that present a lower risk to public safety such as documentation, coatings on exposed fittings or exceeding certain inspection intervals. During subsequent inspections, the remedial action for items listed in a warning letter will be verified.

 

Notices of Probable Violation are the most frequently used enforcement tool.  They will detail specific probable violations of the regulations and may specify what corrective action is required. Under §190.209 Response options, operators have 30 days to respond to the NOPV and submit additional information to PHMSA or request a hearing under §190.211. At the conclusion of the hearing or after the response period expires, a final order will be issued. It will detail the findings and may propose a civil penalty. Payments must be made within 20 days and can be submitted through the PHMSA website.

The regulations require that operators prepare and follow their procedures for the pertinent activities specified in the codes. If an inspection determines that a procedure is inadequate to provide the level of safety required, a Notice of Amendment may be issued directing the operator to amend their plans. Should an operator fail to follow their own procedures, a compliance action may result.  

Corrective Action Orders are issued when PHMSA determines a pipeline is hazardous to life, property or the environment. The Order directs the operator to take necessary corrective action such as taking the pipeline out of service or reducing the operating pressure. When an Order is proposed to be issued, the operator is given the opportunity for a hearing regarding the required actions. However, if PHMSA determines that the delay for the hearing could result in harm to life, property or the environment, the order may be issued immediately. An opportunity for a hearing will be provided after the order is issued to determine future actions. Table 1 shows the enforcement actions initiated by PHMSA from 2002 to December 1, 2009.  

Compliance should not be considered as something an operator must do simply because it is required by the regulations. By maintaining the pipeline system in accordance with the regulations, operators are also implementing operating and maintenance activities that protect and prolong the life of their system. When compliance programs are successful, they lead to a reduction in failures, incidents and related costs.

Compliance is also an act of good citizenship and is expected by all society at all levels. Good citizenship benefits the operator when seeking permits for expansion of its systems, obtaining new rights-of-way, requesting rate changes or mergers with other facilities. Being a good corporate citizen should also be a goal of a regulatory compliance program.