The Pipeline Safety Improvement Act of 2002

                                                                                         

Signed into law on December 17, 2002 by President George W. Bush, the Pipeline Safety Improvement Act of 2002 sets new standards for safety and inspection procedures required for pipelines which transport hazardous liquids and natural gas. The act outlines newer safety requirements with which companies operating pipelines must comply, and increases the severity of penalties for non-compliance. While aimed at improving the safety of pipeline transportation as a whole, the act inherently requires pipeline companies such as Western Pipeline Corporation to invest additional capital into their operations to ensure compliance with the new requirements. Below we examine some provisions brought about by the Pipeline Safety Improvement Act of 2002:

-Integrity Management Programs: The Pipeline Safety Improvement Act of 2002 requires pipeline operators which are subject to Title 49, section 60109 to create and implement an “integrity management program.” The integrity management program requirements include a base assessment of the pipeline facility, with subsequent assessments at least every seven years. Gas pipeline operators must perform a risk analysis for each “high consequence area” and implement a program to reduce risks. High consequence areas (HCA) are those areas through which pipelines pass that would be most affected by an unintentional release. For instance, a high consequence area for a natural gas pipeline would be a section of pipeline passing through a heavily populated area.

-One-call Notification System: The act calls for the establishment of a national three digit one-call notification system which provides information about the locations of underground pipelines to any person or government entity planning to dig, excavate, or otherwise participate in activities that could potentially harm underground systems.

-Implementation of Public Education Programs: The act mandates pipeline facilities to establish programs aimed at educating organizations and the public about potential hazards associated with unintentional pipeline releases as well as promoting use of the one-call notification system.

-Enforcement of Preventative Measures: The Secretary of Transportation is given the authority to require a pipeline operator to take action if a potential safety threat is determined to be present. This provision aims to correct potentially unsafe conditions before they reach a “hazardous” classification.

-Increased Accountability: Section 8 of the act substantially increases penalties and further authorizes the Secretary of Transportation to require preventative actions for potential hazards. Penalty amounts are quadrupled to $100,000 per day, per incident, and maximum civil penalties are doubled from $500,000 to $1,000,000.

-National Mapping System for Pipelines: Pipeline operators must provide the Secretary of Transportation with data for incorporation into a national pipeline mapping system.

Far from an exhaustive evaluation, this information is provided for general informational purposes and is not intended for use as a legal advisory.

About the author:
About the Author: Bob Jent is the CEO of Western Pipeline Corporation. Western Pipeline Corp specializes in identifying, acquiring and developing existing, producing reserves on behalf of its individual clients.

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