[House Report 117-633]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-633
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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\
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\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]