[House Report 117-633]
[From the U.S. Government Publishing Office]


117th Congress    }                                   {      Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                   {      117-633

======================================================================

 
                      OFFSHORE PIPELINE SAFETY ACT

                                _______
                                

 December 14, 2022.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Grijalva, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2643]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 2643) to require the Bureau of Safety and 
Environmental Enforcement to further develop, finalize, and 
implement updated regulations for offshore oil and gas 
pipelines to address long-standing limitations regarding its 
ability to ensure active pipeline integrity and address safety 
and environmental risks associated with decommissioning, and 
for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Offshore Pipeline Safety Act''.

SEC. 2. FINALIZATION OF REGULATIONS RELATED TO OFFSHORE PIPELINES.

  Not later than 18 months after the date of enactment of this Act, the 
Secretary of the Interior, acting through the Director of the Bureau of 
Safety and Environmental Enforcement, shall issue final regulations 
relating to Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Pipelines and Pipeline Rights-of-Way (72 Fed. Reg. 56,442 (Oct. 
3, 2007)). Such regulations shall require owners of oil and gas 
pipelines subject to such regulations--
          (1) to provide for internal and external inspections of 
        pipelines by a third-party no less frequently than every two 
        years, unless the Director of the Bureau determines that any 
        such inspection is not required; and
          (2) to equip such pipelines with a leak detection system or 
        device that provides continuous volumetric comparison between 
        the pipeline's product input and output and includes alarms and 
        adequate sensitivity to detect variations between input and 
        discharge volumes to enable any leaks from the pipeline to be 
        detected as quickly as possible.

SEC. 3. ADDRESSING ENVIRONMENTAL RISKS OF DECOMMISSIONING PIPELINES.

  (a) Study on Environmental Risks of Decommissioning Pipelines Versus 
Removing Pipelines.--
          (1) Study.--The Directors of the Bureau of Safety and 
        Environmental Enforcement and the Bureau of Ocean Energy 
        Management shall jointly conduct a study to evaluate the 
        environmental benefits and risks associated with 
        decommissioning oil and gas pipelines in place on the sea floor 
        compared to removing such pipelines. Such study shall include--
                  (A) an evaluation of pipelines that have been 
                decommissioned in place, identifying decommissioned 
                pipelines at high-risk of causing safety and 
                environmental harm, causing obstructions, or otherwise 
                unduly interfering with present or future uses of the 
                outer continental shelf; and
                  (B) recommendations on the best uses of the revenues 
                generated by the annual pipelines fees as authorized by 
                subsection (d).
          (2) Report.--Not later than 18 months after the date of 
        enactment of this Act, the Directors shall transmit a report to 
        the Committee on Natural Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate, detailing the findings and 
        determinations of the study, including any recommendations for 
        legislation.
  (b) Required Considerations in Reviewing Decommissioning 
Applications.--In determining whether to permit an owner to 
decommission an oil or gas pipeline, the Bureau of Safety and 
Environmental Enforcement, shall fully consider whether the offshore 
oil and gas pipeline constitutes a hazard to navigation and commercial 
and recreational fishing operations, unduly interferes with other uses 
of the outer continental shelf, or has adverse environmental effects.
  (c) Ongoing Monitoring of Decommissioned Pipelines.--The Bureau of 
Safety and Environmental Enforcement shall continually monitor the 
condition and location of all oil and gas pipelines that have been 
decommissioned and remain in place, and shall maintain all relevant 
records of such monitoring.
  (d) Annual Pipeline Owners Fee.--Not later than 180 after the date of 
enactment of this Act, the Bureau of Safety and Environmental 
Enforcement shall issue regulations to assess an annual fee on owners 
of offshore oil and gas pipelines for the purpose of providing the 
Bureau with funds to decommission or remove such pipelines in the event 
an owner files for bankruptcy. Such fee shall be no less than--
          (1) $10,000 per mile for such pipelines in water with a depth 
        of 500 feet or greater; and
          (2) $1,000 per mile for pipelines in water depth of under 500 
        feet.

SEC. 4. REQUIREMENT RELATING TO EXPOSED SEGMENTS OF OFFSHORE PIPELINES.

  If the Bureau of Safety and Environmental Enforcement identifies any 
exposed segment of any active or decommissioned pipeline, the Bureau 
shall either remove the pipeline from the ocean or ensure it is 
properly decommissioned and does not pose a threat. If a segment of any 
active pipeline is exposed or shifts, the Bureau shall re-secure such 
segment to the sea floor.

SEC. 5. COMPLETION OF STUDY RELATING TO ENVIRONMENT RISKS OF CHEMICAL 
                    PRODUCTS USED IN OIL AND GAS OPERATIONS.

  (a) Completion of Study.--The Bureau of Safety and Environmental 
Enforcement shall complete a study addressing the risks to the 
environment of chemical products used in oil and gas operations 
including umbilical lines. In conducting the study, the Bureau shall 
seek input from chemical suppliers and the oil and gas industry.
  (b) Report.--Not later than two years after the date of enactment of 
this Act, the Bureau shall transmit a report of the findings and 
determinations in such study to Congress, including any recommendations 
for legislation.

SEC. 6. EFFECTIVE DATE.

  No provision of this Act shall take effect without considering 
whether such action will result in a reduction of reef fish habitat.

                          PURPOSE OF THE BILL

    The purpose of H.R. 2643 is to require the Bureau of Safety 
and Environmental Enforcement to further develop, finalize, and 
implement updated regulations for offshore oil and gas 
pipelines to address long-standing limitations regarding its 
ability to ensure active pipeline integrity and address safety 
and environmental risks associated with decommissioning.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Department of the Interior (DOI) manages offshore oil 
and gas development on the Outer Continental Shelf (OCS). In 
2019, 16% of all U.S. oil production and 3% of natural gas 
production came from offshore federal OCS leases, almost all of 
which was produced in the Gulf of Mexico. Offshore development 
requires extensive infrastructure, including pipelines 
containing oil, gas, water, or chemicals. Approximately 8,600 
miles of active pipelines in the Gulf and 208 miles of active 
pipelines off California connect wells with near-shore and 
onshore processing and transport facilities. In addition to 
transporting fossil fuels that contribute to climate change, 
this infrastructure poses threats to coastal communities, 
environmental resources and wetlands, wildlife, navigation, and 
other users of the OCS.
    For example, in October 2021, the San Pedro Bay pipeline 
ruptured off the Southern California coast near Huntington 
Beach, spilling nearly 25,000 gallons of oil after being struck 
by an anchor in the previous weeks.\1\ The San Pedro Bay 
pipeline is a 41-year-old, 17.7-mile pipeline connecting the 
Elly Platform with a pumping station in Long Beach, California. 
The Elly Platform processes crude oil produced from two other 
nearby platforms, Ellen and Eureka. All three platforms were 
installed in the 1980s and are located on federal OCS leases 
regulated by the Bureau of Ocean Energy Management (BOEM) and 
the Bureau of Safety and Environmental Enforcement (BSEE). In 
September 2022, the company that owns the pipeline pleaded no 
contest to six criminal charges related to the oil spill and 
agreed to install an improved leak detection system and conduct 
more frequent visual inspections.\2\
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    \1\Sutton, Joe. ``Major oil spill off coast of Southern California 
threatens shores from Huntington Beach to Laguna Beach.'' CNN. Oct. 4, 
2021. https://www.cnn.com/2021/10/04/us/california-oil-spill-monday/
index.html.
    \2\``Amplify Energy to pay over $5 mln to settle criminal charges 
oer the California oil spill,'' Reuters. September 8, 2022 https://
www.reuters.com/markets/commodities/amplify-energy-pay-5-mln-settle-
criminal-charges-over-california-oil-spill-2022-09-08/.
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    Natural disasters also pose significant risks to offshore 
oil pipelines. In the Gulf of Mexico, hurricane winds, waves, 
currents, and mudslides can damage active and abandoned oil and 
gas infrastructure not properly decommissioned. Hurricanes can 
topple platforms, move pipelines, and destroy wells. With 
storms strengthening due to climate change, aging 
infrastructure represents a growing threat to coastal 
communities, wetlands, and wildlife.
    The risks posed by the oil and gas infrastructure, 
including the spiderweb of active, abandoned, and orphaned 
pipelines in the Gulf, became evident when Hurricane Ida tore 
through the region in late August 2021.\3\ In the wake of the 
Category 4 storm, satellite imagery captured multiple oil 
spills.\4\ The storm triggered the most Gulf oil spills 
identified from space following a weather event since the 
federal government began tracking leaks and spills using 
satellites a decade ago.\5\ Abandoned pipelines and other aging 
infrastructure are believed to be a major source of these 
spills, which have impacted environmentally sensitive areas and 
coastal Gulf barriers already suffering from the effects of 
climate change.
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    \3\Marks, Michael and Shelly Brisbin. ``As more and stronger storms 
hit the Gulf, risks to old oil and gas infrastructure grow.'' Texas 
Standard. Sept. 10, 2021. https://www.texasstandard.org/stories/as-
more-and-stronger-storms-hit-the-gulf-risks-to-old-oil-and-gas-
infrastructure-grow/.
    \4\Tabuchi, Hirono, and Blacki Migliozzi. ``Satellite Images Find 
`Substantial' Oil Spill in Gulf After Ida.'' Sept. 4, 2021. https://
www.nytimes.com/2021/09/04/climate/oil-spill-hurricane-ida.html.
    \5\Migliozzi, Blacki, and Hiroko Tabuchi. ``After Hurricane Ida, 
Oil Infrastructure Springs Dozens of Leaks.'' New York Times. Sept. 26, 
2021. https://www.nytimes.com/interactive/2021/09/26/climate/ida-oil-
spills.html.
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    On April 19, 2021, the U.S. Government Accountability 
Office (GAO) released a report that found issues in the BSEE's 
oversight of both active and abandoned offshore oil and gas 
pipelines on the OCS. According to GAO, BSEE does not require 
or conduct comprehensive subsea inspections of the 
approximately 8,600 miles of active pipelines located on the 
Gulf of Mexico seafloor, depends on unreliable sensing 
equipment to assess pipeline integrity, lacks standard tracking 
of movement or exposure of active pipelines, and has little 
knowledge of the condition, location, and threats presented by 
thousands of miles of active offshore pipeline. Outdated BSEE 
regulations also prohibit regulators from compelling industry 
usage of new, safer technologies.
    The GAO report also investigated abandoned offshore 
pipelines and found that since the 1960s, the oil and gas 
industry has left approximately 18,000 miles of 
``decommissioned'' pipelines, making up over 97% of pipelines 
on the seafloor in the Gulf region. Abandoning pipelines in the 
ocean has become the standard practice, rather than the 
exception, as was originally intended. Current regulations 
don't require studies of the chemicals and materials that may 
leak into the ocean from pipelines ``decommissioned in place,'' 
and BSEE doesn't require a comparative environmental impact 
assessment for all potential decommissioning processes. This 
lack of regulation has resulted in BSEE defaulting to 
procedures that financially favor pipeline operators while 
contributing to a growing network of environmental threats that 
are not fully understood. GAO found that BSEE does not have 
adequate funds to remove all the abandoned pipelines from the 
seafloor.
    H.R. 2643 incorporates nearly all of GAO's recommendations 
to improve offshore pipeline safety for both active and 
decommissioned pipelines. H.R. 2643 requires BSEE to issue 
regulations to improve the oversight of offshore pipelines, 
conduct a study on the environmental risks associated with 
decommissioning oil and gas pipelines in place, and to charge 
owners of offshore pipelines an annual fee to fund pipeline 
removal, among other important reforms.

                            COMMITTEE ACTION

    H.R. 2643 was introduced on April 19, 2021, by 
Representative Julia Brownley (D-CA). The bill was referred 
solely to the Committee on Natural Resources, and within the 
Committee to the Subcommittee on Energy and Mineral Resources. 
On May 13, 2021, the Subcommittee held a hearing on the bill. 
On October 13, 2021, the Natural Resources Committee met to 
consider the bill. The Subcommittee was discharged by unanimous 
consent. Rep. Matt Rosendale (R-MT) offered an amendment 
designated Rosendale #1. The amendment was not agreed to by a 
roll call vote of 16 yeas and 23 nays, as follows:

	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Rosendale offered an amendment designated Rosendale 
#2. The amendment was withdrawn. Rep. Rosendale offered an 
amendment designated Rosendale #3. The amendment was not agreed 
to by a roll call vote of 18 yeas and 25 nays, as follows:

	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    By unanimous consent, Rep. Jerry Carl (R-AL) offered an 
amendment on behalf of Rep. Garret Graves (R LA) designated 
Graves #2. The amendment was agreed to by voice vote. Rep. 
Graves offered an amendment designated Graves #3. The amendment 
was not agreed to by a roll call vote of 17 yeas and 24 nays, 
as follows:
	
	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Graves offered an amendment designated Graves #4. The 
amendment was not agreed to by voice vote. The bill, as 
amended, was adopted and ordered favorably reported to the 
House of Representatives by a roll call vote of 25 yeas and 18 
nays, as follows:

	[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                HEARINGS

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Energy and Mineral Resources 
held on May 13, 2021.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title

    The Act may be cited as the ``Offshore Pipeline Safety 
Act.''

Section 2. Finalization of regulations related to offshore pipelines

    This section requires BSEE to issue final regulations 
within 18 months to require owners of oil and gas pipelines to 
conduct internal and external inspections by a third-party no 
less than every two years and to equip pipelines with a leak 
detection system.

Section 3. Addressing environmental risks of decommissioning pipelines

    Section 3 requires the Directors of BSEE and BOEM to study 
the environmental risks associated with decommissioning oil and 
gas pipelines in pace as opposed to removing them. The study 
shall evaluate pipelines that have been decommissioned in 
place, identify those at high-risk of causing safety and 
environmental harm, or could otherwise impede other uses of the 
outer-continental shelf. The study shall also make 
recommendations on the best use of revenues generated by the 
annual pipeline fees authorized in the legislation. The report 
shall be transmitted to the House Committee on Natural 
Resources and the Senate Committee on Energy and Natural 
Resources no later than 18 months after the date of enactment.
    The section also requires BSEE to consider potential 
hazards to navigation and fishing operations, interference with 
other OCS uses, and adverse environmental effects when 
determining whether to permit an owner to decommission an oil 
or gas pipeline in place.
    The section requires BSEE to continually monitor the 
condition and location of all oil and gas pipelines that have 
been decommission in place and maintain all records.
    Lastly, this section establishes an annual pipeline owners' 
fees and creates the Offshore Pipeline Cleanup Fund. BSEE is 
required to issue regulations to assess an annual fee on owners 
of offshore oil and gas pipelines, which will then be deposited 
into the Fund and be made available to BSEE for the purposes of 
decommissioning or removing offshore oil and gas pipelines that 
pose a high-risk of causing safety and environmental harm, 
causing obstructions, or otherwise unduly interfering with 
present or future uses of the outer continental shelf.

Section 4. Requirement relating to exposed segments of offshore 
        pipelines

    Section 4 directs BSEE to remove or decommission a pipeline 
segment that is exposed so that it no longer poses a threat. If 
a segment of any active pipeline is exposed or shifts, BSEE 
shall resecure it to the sea floor.

Section 5. Completion of study relating to environmental risks of 
        chemical products used in oil and gas operations

    In Section 5, BSEE is directed to complete a study on the 
risks to the environment of chemical products used in oil and 
gas operations. The agency shall submit a report to Congress, 
including any recommendations for legislation, within two years 
after the date of enactment.

Section 6. Relationship to other laws

    Section 6 clarifies that nothing in this Act affects the 
authority of the Secretary of Transportation to regulate 
pipeline safety.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      COMPLIANCE WITH HOUSE RULE XIII AND CONGRESSIONAL BUDGET ACT

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) of rule XIII 
of the Rules of the House of Representatives and section 308(a) 
of the Congressional Budget Act of 1974 and with respect to 
requirements of clause (3)(c)(3) and clause 3(d) of rule XIII 
of the Rules of the House of Representatives and section 402 of 
the Congressional Budget Act of 1974, the Committee has 
requested but not received a cost estimate for this bill from 
the Director of Congressional Budget Office. The Committee 
adopts as its own cost estimate the forthcoming cost estimate 
of the Director of the Congressional Budget Office, should such 
cost estimate be made available before House passage of the 
bill.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goals and 
objectives of this bill are to require the Bureau of Safety and 
Environmental Enforcement to further develop, finalize, and 
implement updated regulations for offshore oil and gas 
pipelines to address long-standing limitations regarding its 
ability to ensure active pipeline integrity and address safety 
and environmental risks associated with decommissioning.

                           EARMARK STATEMENT

    This bill does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 UNFUNDED MANDATES REFORM ACT STATEMENT

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chair of 
the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee, if such 
estimate is not publicly available on the Congressional Budget 
Office website.

                           EXISTING PROGRAMS

    This bill does not establish or reauthorize a program of 
the federal government known to be duplicative of another 
program.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               PREEMPTION OF STATE, LOCAL, OR TRIBAL LAW

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes to existing 
law.

                            DISSENTING VIEWS

    H.R. 2643 would direct the Bureau of Ocean and Energy 
Management (BOEM) and the Bureau of Safety and Environmental 
Enforcement (BSEE) to finalize regulations for the inspection 
of offshore pipelines by third parties and installation of leak 
detection systems on offshore pipelines; study the 
environmental risks associated with decommissioning oil and gas 
pipelines; and assess new fees on offshore pipeline operators. 
H.R. 2643 attempts to incorporate recommendations from a 
Government Accountability Office (GAO) report released in March 
2021 titled ``Offshore Oil and Gas: Updated Regulations Needed 
to Improve Pipeline Oversight and Decommissioning.''\1\
---------------------------------------------------------------------------
    \1\Offshore Oil and Gas: Updated Regulations Needed to Improve 
Pipeline Oversight and Decommissioning. GAO-21-293. Published: Mar 19, 
2021. Publicly Released: Apr 19, 2021. https://www.gao.gov/products/
gao-21-293.
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    According to GAO, approximately 40,000 miles of oil and gas 
pipelines have been installed on the OCS since the 1940s, with 
approximately 8,600 miles of offshore pipelines active today. 
BSEE is responsible for the oversight of active pipelines and 
their decommissioning. The GAO found that since the 1960s, over 
97 percent--about 18,000 miles--of pipelines were left on the 
Gulf of Mexico seafloor, rather than being removed following 
decommissioning. The report recommends that BSEE finalize 
updated pipeline regulations to address risks associated with 
pipeline decommissioning and expand oversight of active 
offshore pipelines. Ensuring that offshore operations are 
conducted safely is a bipartisan concern. However, many of the 
requirements in H.R. 2643 would be duplicative of ongoing 
efforts by industry and existing requirements of regulations 
under BSEE. H.R. 2643 would be unnecessarily burdensome to 
offshore pipeline owners by establishing arbitrary fees and 
imposing duplicative regulatory requirements.
    Additionally, offshore infrastructure provides a vast 
supply of artificial reefs, allowing for diverse marine life to 
flourish in a variety of new locations. In many circumstances, 
removing these facilities after decommissioning would destroy 
existing marine habitat. For example, BSEE's Rigs to Reefs 
program sustains these ecosystems by converting decommissioned 
offshore facilities into reefs.\2\ Soon after an offshore rig 
is constructed, marine life begins to collect on the stationary 
rig jacket. Within six months, the underwater structure hosts a 
vibrant community including invertebrates, fish, sea turtles, 
and mammals.\3\ As the average life cycle of an offshore 
facility in the Gulf of Mexico spans several decades, these 
structures become an integral part of the offshore environment. 
Any consideration of decommissioning and removal of offshore 
infrastructure must consider the importance of this 
infrastructure to the marine environment. Offshore pipeline 
regulations should take into account the latest technology and 
allow for innovation to modernize our pipeline infrastructure.
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    \2\Bureau of Offshore Safety and Enforcement. Rigs to Reefs. 
https://www.bsee.gov/what-we-do/environmental-compliance/environmental-
programs/rigs-to-reefs.
    \3\``Rigs to Reefs'' http://www.api.org/oil-and-natural-gas/
environment/clean-water/oil-spill-prevention-and-response/rigs-to-
reefs.
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    Because H.R. 2642 would stifle innovation and potentially 
harm the marine environment, I oppose this bill in its current 
form.

                                                   Bruce Westerman.

                                  [all]