Pipeline Safety

As an outgrowth of Van Ness Feldman’s long-standing representation of gas and oil pipelines, the firm advises natural gas, oil, and hazardous liquids pipeline owners and operators on numerous pipeline safety matters before the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), including compliance, enforcement, and litigation issues, the effectiveness of pipeline safety compliance, risk management, and obtaining Special Permits authorizing use of new materials and technologies.  In addition, we expect that the growth in the use and demand for biofuels and the need for safe distribution systems for these products will present new opportunities and challenges for companies engaged in the transportation of these fuels.

Charged with ensuring the safe operation of the nation’s extensive network of pipelines that transport gas and hazardous liquids (including crude oil, other petroleum products, and CO₂), PHMSA has adopted minimum pipeline safety standards that apply to interstate and intrastate gas pipelines and many hazardous liquid pipelines.  PHMSA’s regulations are comprehensive.  They address the design, construction, operation, maintenance, and inspection of pipeline facilities and specify requirements for, among other things, corrosion control, integrity management, public awareness and damage prevention programs, and recordkeeping.  State regulatory agencies apply these requirements to intrastate pipelines and also can require intrastate pipelines to comply with additional pipeline safety requirements.

PHMSA’s evolving pipeline safety regulatory regime raises continuing operational and compliance challenges and opportunities for pipeline owners and operators:

The scope of PHMSA’s regulations will expand.  The Pipeline Inspection, Protection, Enforcement, and Safety (PIPES) Act, enacted in December 2006, requires that PHMSA expand its regulatory programs in significant ways.  In particular, PHMSA must adopt integrity management regulations for natural gas distribution pipelines and increase safety regulations applicable to low-stress hazardous liquid pipelines.  When issued, these regulations will subject these pipeline systems to substantially increased safety requirements.  PHMSA also has expanded its regulation of some gas gathering lines.  In addition, PHMSA is examining how its regulatory programs need to be modified to address safety risks posed by pipelines that may transport biofuels, including unblended ethanol, and fuel blends containing high concentrations of ethanol. 

Compliance requirements are extensive and vigorously enforced.  At the same time that its regulatory programs are expanding, PHMSA has become more vigilant in enforcing their requirements.  Regulatory compliance requires that pipelines develop and implement detailed written programs and processes for integrity management, public education and awareness, operator qualification, and damage prevention.  Owners and operators of pipelines must demonstrate compliance by documenting technical reasons for their decisions and actions.  Pipelines also must comply with reporting requirements.  Implementing safety compliance programs can be time-consuming and costly, but non-compliance can expose a pipeline company to enforcement actions and potentially civil or criminal litigation. 

New technology has created opportunities.  PHMSA recognizes that dramatic technological improvements in materials, metallurgy, controls, operations and maintenance over the last 20 years present opportunities for using new types of materials in the design and construction of pipelines.  These new technologies permit the use of more cost-effective materials without compromising public safety. 

Our attorneys provide the following services with respect to pipeline safety matters:

• Enforcement and Litigation Matters.  We represent and advise owners of both oil and natural gas pipelines in responding to proposed enforcement actions, including notices of proposed violations and notices of amendment, initiated by PHMSA.  We team up with the technical and field personnel of oil and gas pipelines to develop effective strategies in preparing responses to proposed enforcement actions.  In addition, we advise in civil litigation matters involving pipeline safety issues.
• Ensuring Compliance: 
  • We work with natural gas pipeline clients and their expert consultants in developing written integrity management programs and in implementing procedures to ensure thorough documentation of program compliance.  The technical requirements of integrity management programs are different for hazardous liquid and natural gas pipelines, but both regulatory regimes require the development and implementation of extensive written programs and processes and thorough documentation of compliance. 
  • We provide guidance in interpreting rules and other regulatory requirements, and in reviewing documents to be submitted to state and federal agencies.  We also monitor the issuance of new regulations and notify pipeline clients of developments affecting their operations. 
  • Van Ness Feldman also created standard operating procedures and protocols to assist business personnel in managing asbestos, assessed training programs, and developed a compliance matrix.
• Special Permits.  Van Ness Feldman counsels owners and operators of natural gas pipelines in developing and prosecuting petitions for Special Permits that enable use of new technology and improved materials in the design and construction of new natural gas pipelines.  For example, we assisted the Rockies Express Pipeline in obtaining one of the first Special Permits enabling the pipeline to operate at 80% SMYS, thereby realizing substantial savings in construction costs.  We also assisted Kinder Morgan Louisiana Pipeline Company in obtaining a similar Special Permit. 
• Risk Management.  Van Ness Feldman attorneys counsel pipeline company management on the effectiveness of pipeline safety systems and in risk management.  In this regard, the firm reviews and evaluates pipeline companies’ compliance and monitoring programs and counsels regarding corporate reporting structures.
• Post-Incident Counseling.  We provide assistance and strategic counseling involving environmental compliance and enforcement matters that may arise in connection with pipeline safety or operational incidents, including pipeline leaks and spills.