USDOT
A. Definition
The Office of Pipeline Safety (OPS) is part of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), which is under USDOT.
OPS carries out a national program to ensure the safe, reliable and
environmentally sound operation of the Nation's pipeline transportation
system. Among other duties, OPS:
• Develops and maintains partnerships with other Federal, state, and local
agencies, public interest groups, tribal governments, and the regulated
industry and other underground utilities to address threats to pipeline
integrity, service, and reliability and to share responsibility for the safety of
communities.
• Administers Pipeline Safety regulatory programs and establishes the
regulatory agenda. Develops regulatory policy options and initiatives, and
researches, analyzes, and documents social, economic, technological,
environmental, safety, and security impacts upon existing/proposed
regulatory, legislative, or program activities involving pipeline safety.
• Oversees pipeline operator implementation of risk management and riskbased programs. Administers a national pipeline inspection and
enforcement program.
link: phmsa.dot.gov—menuitem.ebdc7a8a7e39f2e55cf2031050248a0c
B. Discussion
Regulation of America's oil and gas pipelines falls into two basic categories
- regulations that help the industry ensure the safety of communities and
the environment, and regulation of transportation charges.
Two statutes provide the framework for the Federal pipeline safety
program. The Natural Gas Pipeline Safety Act of 1968 as amended
(NGPSA) authorizes the USDOT to regulate pipeline transportation of
natural (flammable, toxic, or corrosive) gas and other gases as well as the
transportation and storage of liquefied natural gas (LNG). Similarly, the
Hazardous Liquid Pipeline Safety Act of 1979 as amended (HLPSA)
authorizes the USDOT to regulate pipeline transportation of hazardous
liquids (crude oil, petroleum products, anhydrous ammonia, and carbon
dioxide). Both of these Acts have been recodified as 49 U.S.C. Chapter
601.
Interstate Pipelines
The Office of Pipeline Safety (OPS), which is within the U.S. Department of
Transportation's Pipeline and Hazardous Materials Safety Administration
(PHMSA), regulates interstate hazardous liquids pipelines pursuant to
the Pipeline Safety Act of 1979 as amended. The purpose is to assure the
safe and environmentally sound transportation of natural gas, liquefied
natural gas and hazardous liquids by pipeline. This includes gas
transmission and gathering lines, and some low-stress pipelines.
Most hazardous liquids pipelines cross state lines and are called
interstate pipelines. PHMSA regulates interstate pipelines but can
delegate certain authorities to state regulators. PHMSA has agreements
with several states to act as inspection agents. In Ohio that agency is the
Public Utility Commission (PUCO). PHMSA retains enforcement authority
over interstate lines, even if a state regulator is an inspection agent.
Intrastate Pipelines
Pipelines that exist solely within a state are called intrastate pipelines.
PHMSA has authority regulate intrastate pipelines, but can delegate to
certified states the authority to regulate intrastate pipelines. Almost all
intrastate hazardous liquid pipelines are now regulated by a state.
States follow the Federal safety regulations in 49 CFR Part 195, and state
safety rules must be no less stringent than the Federal rules. Some states
only inspect intrastate pipelines without having enforcement authority, while
some states conduct both inspections and enforcement.
To distinguish, the Federal Energy Regulatory Commission reviews and
authorizes the operation of the interstate natural gas pipelines.
Intrastate pipelines that run within one state and do not cross state
boundaries are typically regulated by a state government agency and in
Ohio it's PUCO.
There are no provisions for something akin to FERC's certificate of public
convenience and necessity under the HLPSA. HLPSA does not certify or
permit pipelines for new construction. It just ensures that the construction
is as prescribed by safety standards.
Federal Regulations
The Federal pipeline safety regulations (1) assure safety in design,
construction, inspection, testing, operation, and maintenance of pipeline
facilities and in the siting, construction, operation, and maintenance of LNG
facilities; (2) set out parameters for administering the pipeline safety
program; and (3) delineate requirements for onshore oil pipeline response
plans. The regulations are written as minimum performance standards.
State Pipeline Safety programs adopt the federal regulations and may
issue more stringent regulations for intrastate pipeline operators under
state law. The regulations are published in the Code of Federal
Regulations, 49 CFR Parts 190-199:
190 -- Enforcement procedures
191 -- Natural gas reporting requirements
192 -- Natural gas
193 -- Liquefied natural gas
194 -- Response plans for onshore oil pipelines
195 -- Hazardous liquids
198 -- State grants
199 -- Drug and alcohol testing
The federal regulations relevant to the HLPSA appear at 49 CFR part 195,
which is titled "Transportation of Hazardous Liquids by Pipeline." 49 CFR
195.0 clarifies, "this part prescribes safety standards and reporting
requirements for pipeline facilities used in the transportation of hazardous
liquids or carbon dioxide. Likewise, 49 CFR 195.1 states that part 195
"applies to pipeline facilities and the transportation of hazardous liquids or
carbon dioxide associated with those facilities in or affecting interstate or
foreign commerce."
The HLPSA provides the following useful definitions that make it fairly clear
that most refined petroleum products and natural gas liquids, are
"hazardous liquid" regulated by the PHMSA:
"Hazardous liquid" means petroleum, petroleum products, or anhydrous
ammonia.
"Highly volatile liquid or HVL" means a hazardous liquid which will form a
vapor cloud when released to the atmosphere and which has a vapor
pressure exceeding 276 kPa (40 psia) at 37.8[degrees] C (100[degrees] F).
"Petroleum" means crude oil, condensate, natural gasoline, natural gas
liquids, and liquefied petroleum gas.
"Petroleum product" means flammable, toxic, or corrosive products
obtained from distilling and processing of crude oil, unfinished oils, natural
gas liquids, blend stocks and other miscellaneous hydrocarbon
compounds.
Those who will be constructing pipelines should work with the PHMSA to
ensure the location and construction of the pipeline meets HLPSA safety
standards. That relationship starts by obtaining an Operator ID ("OPID").
State Programs
While the Federal government is primarily responsible for developing,
issuing, and enforcing pipeline safety regulations, the pipeline safety
statutes provide for State assumption of the intrastate regulatory,
inspection, and enforcement responsibilities under an annual certification.
To qualify for certification, a state must adopt the minimum Federal
regulations and may adopt additional or more stringent regulations as long
as they are not incompatible. A State must also provide for enforcement
sanctions substantially the same as those authorized by the pipeline safety
statutes. Ohio is not certified.
A state agency that does not satisfy the criteria for certification may enter
into an agreement to undertake certain aspects of the pipeline safety
program for intrastate facilities on behalf of OPS. While the state agency
under an agreement will inspect pipeline operators to ascertain compliance
with Federal safety regulations, any probable violations are reported to
OPS for enforcement action. Every State is currently participating in the
natural gas pipeline safety program except for Alaska and Hawaii.
Fourteen States participate in the hazardous liquid pipeline safety
program. Fewer States participate in the liquid program due to the
significantly lower number of miles of liquid pipelines.
State Pipeline Safety Programs for the HAZARDOUS LIQUID
PROGRAM
State Agencies Under Section 60105(a) Certification (14)
Alabama
Arizona
California
Indiana
Louisiana
Maryland
Minnesota Texas
New York
New Mexico
West Virginia
Oklahoma
Virginia
Washington
Federal pipeline statutes provide for exclusive Federal authority to regulate
interstate pipelines. OPS may authorize a State to act as its agent to
inspect interstate pipelines, but retains responsibility for enforcement of the
regulations. Most States have supported the concept of common
stewardship in pipeline safety. The resulting Federal/State partnership
allows leveraging of resources to deliver a cost-effective program that has
one of the best safety records in transportation.
OPS regional offices inspect interstate pipeline systems and intrastate
facilities under direct Federal jurisdiction to determine operator compliance
with pipeline safety regulations. These facilities include certain municipal
and master meter gas systems that by State law are not subject to State
regulation or intrastate pipelines in States where the state agency is not
participating in the program.