PIPELINE NOTES FROM WASHINGTON
Vol. 4, No. 21
June 1, 2001

Association of Oil Pipe Lines
(202) 408-7970
(202) 408-7983 (fax)
bcooper@aopl.org

The opinions if any expressed in these notes are the author’s only and do not represent the views of the Association of Oil Pipe Lines (but they should).

1.	FERC Commissioners Confirmed by the Senate Friday May 25

	We missed the news last Friday that the Senate had confirmed the nominations of Nora Mead Brownell of Pennsylvania and Patrick Henry Wood III of Texas to be Commissioners of the Federal Energy Regulatory Commission.  They are now official, and the Commission is at full voting strength.  Members need to get in to see these new Commissioners.

2.	President Announces Intent to Nominate DOT General Counsel and RSPA Head 

President Bush announced this week that he intends to nominate Kirk Van Tine to be General Counsel of the Department of Transportation.  Van Tine is currently a Partner with the law firm of Baker and Botts in Washington, D.C., where he is in charge of the firm's litigation process.  A former member of the U.S. Navy, he is a graduate of the Naval Academy and the University of Virginia Law School. 
The President also announced the intention to nominate Ellen G. Engleman to be Administrator of the Research and Special Programs Administration at the Department of Transportation.  She currently serves as President and CEO of Electricore, Inc., a non-profit research and development consortium that develops advanced transportation and energy technologies through federal public/private partnerships.  >From 1993 to 1994 she was the Director of Corporate and Government Affairs for Direct Relief International and was a Public Affairs Executive with GTE from 1987 to 1992.  A resident of Indianapolis, Indiana, she is a graduate of Indiana University, received a law degree from Indiana University Law School and a Master's of Public Administration from Harvard University.

We don’t know any more at this moment about these important nominees than is in the White House press release: http://www.whitehouse.gov/news/releases/2001/05/20010531-7.html.

3.	Bush Energy Executive Orders

Here are the links so you can read the first Executive Orders issued to implement parts of the Bush Energy Plan for yourself: http://www.whitehouse.gov/news/releases/2001/05/20010518-6.html and 
http://www.whitehouse.gov/news/releases/2001/05/20010518-5.html.

4.	OPS to Host Integrity Management Workshops 

Put this on your calendars.  API tells us the Office of Pipeline Safety will be conducting two public workshops to assist operators in developing an understanding of the integrity management rulemaking, OPS expectations related to the rulemaking, and OPS resources that are available to operators.  The workshops are scheduled:
 
August 7-8, 2001
Doubletree Post Oak Hotel
Houston, TX
 
October 10-11, 2001
Renaissance Greenway Plaza Hotel
Houston, TX
 
Logistics and an agenda for these meetings will follow in the next few weeks.  We do know that Day 1 will focus on the rule itself and the resources available through the National Pipeline Mapping System.   Day 2 will focus on specific portions of the rule and how operators are approaching those portions.  OPS characterizes this as a "peer to peer" exchange and is seeking volunteer company presenters to share ways they are approaching aspects of the rule.  OPS does not expect a demonstration of compliance but an exchange of meaningful ways to approach data management, risk assessment, program development or even subsets of these broad areas.   OPS is seeking operators to make presentations on the Day 2.  If you would like to take advantage of this opportunity, can contact Beth Callsen at OPS at (202) 366-4572 or Beth.Callsen@RSPA.dot.gov.   

5.	OPS Looking Into Right-of-Way Encroachments

The Office of Pipeline Safety is looking input in a Pipeline Rights-of-Way Encroachment Research Project.  The response they want will take only a few minutes of your time.  Submissions must be made no later than June 15.  To participate in the OPS research effort, complete the questionnaire available at  
http://assn.cycla.com/cycla/trad_SvyHome.trd?&svy=19&pass=encroach&set=oil
 
6.	New Report on In-Line Inspections

API informs us that the National Association of Corrosion Engineers has published a new technical committee report, "In-Line Nondestructive Inspection of Pipelines."   The report analyzes currently available and emerging technologies for in-line inspection tools and reviews their status with respect to characteristics, performance, range of application, and limitations.  It is intended as a reference tool.  The report is currently only available in paper form by contacting NACE at (281) 228-6223 or by fax at (281)228-639.  The item number is 24211. The price is $22 (list) or $17 (NACE members).  The document will become available in the near future electronically from the NACE website at www.nace.org, but it is not there now.

7.	More on ExSTARS

According to an IRS reminder notice received this week, all product terminal operators must file their initial excise tax reports under the ExSTARS program by May 31, 2001 covering the month of April 2001.  So if you haven’t done it yet, you’re late.  Terminal operators are required to report all bulk and non-bulk receipts of liquid products into terminals and all disbursements by position holders using Form 720-TO and monthly inventory reconciliation by product code using Form 720-CS.  If this is all Greek to you and you think you are affected, check out the IRS website at http://www.irs.gov/bus_info/excise/index.html. 
 
8.	Texas Legislature Wraps Up

The Texas legislature finished up business this week.  Few bills passed affecting pipelines.  However, one bill that did make it out of the legislature requires pipeline companies to notify the public when they change the fuels they transport and to share emergency evacuation plans with school boards. http://www.austin360.com/statesman/editions/thursday/news_2.html -- Not much was left on their to-do list.   

9.	Olympic Continues to Make Progress

http://archives.seattletimes.nwsource.com:80/cgi-bin/texis/web/vortex/display?slug=pipeline31m0&date=20010531 -- Pipeline to Sea-Tac reopens. http://seattlep-i.nwsource.com/local/25584_tl301.shtml -- Olympic Pipe Line will flow again soon.  Check out Olympic’s press release and fact sheet at “Current Press Releases” at http://www.olypipeline.com/pressroom/presslistpp.cfm. 

10.	WA State - BP-Fuel Safe Washington v. Williams

http://news.bellinghamherald.com/stories/20010530/FrontPage/54766.shtml -- BP concerned about crossing project: Georgia Strait project would run through wetlands, near heron habitat.

11.	Comment on the Bush Energy Plan 

	We thought these were interesting:
http://ja.mlive.com/news/index.ssf?/news/stories/20010531j31opinthurkjwsdpjnewe.frm -- The Bush energy plan is mostly good policy; http://www.nytimes.com/2001/05/18/politics/18ENER.html?pagewanted=1 -- Excessive Regulation Is Blamed for Energy Woes (The Times access is free – you just have to register).

12.	Members of Congress Who Support Pipelines

Sometimes it happens. http://www.deseretnews.com/dn/view/0,1249,275007929,00.html -- Action sought on gas lines:  Bennett, Hansen push for OKs on Utah pipelines.

13.	NTSB Has Problems With Other Modes Too 

	Sometimes this happens too.  http://www.al.com/newsflash/index.ssf?/cgi-free/getstory_ssf.cgi?o1830_BC_SafetyRecommendations&&news&newsflash-washington -- NTSB recommendations sometimes ignored.

14.	Getting Gasoline Prices Right

	And this also sometimes it happens.  http://www.charlotte.com/observer/natwor/docs/gasprices0526.htm -- Several hands dig in our pocket at the gas pump.

15.	Risk Management Demonstration Program Report on the OPS Website
 
The date on the report is December 2000, but OPS just recently placed the report on its website at http://ops.dot.gov/ReportToCongress042501.htm -- Beyond Compliance: a Report to Congress on the Pipeline Risk Management Demonstration Program.

16.	Not Real-Time Leak Detection

Last week we pointed you to a link to an article on leak detection at: http://www.business2.com:80/magazine/2001/05/pipe_down.htm -- Pipe Down:
Web-linked monitors could stop pipeline problems before they explode-literally.
We said in our title that this article describes a technology for “real-time” leak detection.  As an alert reader pointed out that this characterization is not accurate, as the technology described only detects changes in coating condition. In accomplishing that function, it may be able to identify the occurrence of outside force damage that results from coating damage.

17.	Change in Control of the Senate Preserves Staff Jobs for the Time Being

We erred last week in predicting that the switch in party leadership in the Senate would mean that a large number of former Republican Senate committee staff would have to look for new work.  The power-sharing arrangement negotiated in the 50-50 Senate prior to the switch by Sen. Jim Jeffords (D-VT) provided for continuation of the larger staff budget for the 107th even if a switch occurs.  So apparently, the staff all get to keep their jobs.

18.	Index Correction 

Pipeline rates may be adjusted upwards by 2.7594% as of July 1, 2001 under the Federal Energy Regulatory Commission’s new rate index, but the multiplier is not 1.27594 as we asserted last week.  It is 1.027594, which is a bit less generous.  Hope you didn’t get in trouble on our account.