PIPELINE NOTES FROM WASHINGTON
Vol. 4, No. 51
December 28, 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.	OPS Inspection Protocols for Integrity Management Revised and Published

The Inspection Protocols to be used for the Office of Pipeline Safety's Segment Identification and Completeness Check Inspections have been revised to reflect experience gained in the pilot tests.  These are available for viewing and downloading from the following location: http://primis.rspa.dot.gov/iim/protocol.htm.   These inspections will be conducted in the first quarter of 2002 for operators who own or operate 500 or more miles of hazardous liquid pipeline.  The primary objective of these inspections is to determine operator compliance with the requirement to identify all pipeline segments that can affect High Consequence Areas by December 31, 2001.  OPS will also conduct a completeness check to ascertain the status of the operator’s progress in developing the Integrity Management Program Elements required by the new rule (49 CFR 195.452).  The protocols provide the basic questions to be used in performing these inspections and the framework under which more detailed lines of inquiry may be conducted.

2.	House Pipeline Safety Legislation 

H.R. 3609, the House pipeline safety bill introduced December 20, is not up on the Library of Congress website: http://thomas.loc.gov, but highlights from the table of contents to give you a sense of the bill’s provisions:
Sec. 2 strengthens the federal one call notification law passed two Congresses ago and gives a big boost to the Common Ground Alliance;
Sec. 3 strengthens federal enforcement of one-call requirements;
Sec. 4 requires each pipeline operator to have a public safety program;
Sec. 5 authorizes the Secretary to require operators to take corrective action to address potentially unsafe conditions or vulnerabilities to terrorist attacks;
Sec. 6 increases civil penalties under the Pipeline Safety Act,;
Sec. 7 strikes the word “demonstration” where it is used in connection with risk management;
Sec. 8 provides for a federal study of land use practices and zoning ordinances with regard to pipeline rights-of-way;
Sec. 9 establishes a program of pipeline integrity research, development and demonstration;
Sec. 10 requires each pipeline operator to have a program to qualify pipeline controllers that is certified by the Secretary of Transportation;
Sec. 11 directs the Secretary to require each pipeline operator to have a terrorism security program;
Sec. 12 makes participation in the National Pipeline Mapping System a statutory requirement;
Sec. 13 provides for the expediting of permit review by federal agencies for pipeline repair and rehabilitation projects;
Sec. 14 protects sensitive information about pipeline vulnerabilities from disclosure;
Sec. 15 makes technical changes; and 
Sec. 16 authorizes funding for the Office of Pipeline Safety for four years.

	Under the AOPL/API Environmental and Safety Initiative, the Integrity and Reauthorization Team, captained by ChevronTexaco’s Jeet Bindra, will develop the oil pipeline industry’s response to this bill.  If you are interested in working with this team, let us know.

3.	Fiscal Year 2002 Fees

The fees to be assessed for natural gas transmission, hazardous liquid and liquefied natural gas (LNG) are: natural gas transmission pipelines: $109.15 per mile (based on 298,132 miles of pipeline); and hazardous liquid pipelines: $121.99 per mile (based on 160,546 miles of pipeline).  LNG is based on the number of plants and total storage capacity of each plant.  The official announcement: http://ops.dot.gov/userfee/FY2002feeAssess.htm. 

4.	Confrontation Continues in Austin

http://dailynews.yahoo.com/htx/keye/20011227/lo/court_battle_may_be_next_for_city_of_austin_and_longhorn_pipeline_1.html -- Court Battle May Be Next For City Of Austin And Longhorn Pipeline

5.	Fines Levied in Ammonia Spill in Iowa

http://web.wichitaeagle.com/content/wichitaeagle/2001/12/22/business/1222spill_txt.htm -- Koch pipeline spill kills 700,000 fish in Iowa; company accepts blame; http://www.ljworld.com/section/stateregional/story/78374 -- Koch fined for record fish kill spill.

6.	FERC Approves Natural Gas Pipeline Under Lake Erie

The Federal Energy Regulatory Commission voted 4-0 last week to tentatively approve the $700 million Millennium natural gas pipeline, which would be the first to cross beneath the Great Lakes.  http://www.ohio.com/bj/news/docs/003337.htm -- U.S. backs Lake Erie pipeline