Pipeline Safety: Progress Made, but Significant Requirements and 
Recommendations Not Yet Complete (28-SEP-01, GAO-01-1075).	 
								 
In a May 2000 report on the performance of the Department of	 
Transportation's Office of Pipepline Safety (OPS), GAO found that
the number of pipepline accidents rose four percent annually from
1989 to 1998--from 190 in 1989 to 280 in 1998. GAO also found	 
that OPS did not implement 22 statutory requirements and 39	 
recommendations made by the National Transportation Safety Board.
Since GAO's May report, OPS has fully implemented six of the 22  
statutory requirements. However, 11 other requirements--including
some that are significant and long-standing--have not been fully 
implemented. The agency does not plan to report on abandoned	 
underwater pipeline facilities--a remaining open		 
requirements--because it believes that insufficient data exists  
to conduct the study. The Safety Board is encouraged by OPS'	 
recent efforts to improve its responsiveness, but the Board	 
remains concerned about the amount of time OPS has taken to	 
implement recommendations. OPS has the lowest rate of any	 
transportation agency in implementing the Board's		 
recommendations.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-01-1075					        
    ACCNO:   A02039						        
  TITLE:     Pipeline Safety: Progress Made, but Significant	      
Requirements and Recommendations Not Yet Complete		 
     DATE:   09/28/2001 
  SUBJECT:   Hazardous substances				 
	     Natural gas					 
	     Pipeline operations				 
	     Safety regulation					 
	     Evaluation 					 
	     OPS Risk Management Demonstration			 
	     Program						 
								 

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GAO-01-1075
     
Report to Congressional Requesters

United States General Accounting Office

GAO

September 2001 PIPELINE SAFETY Progress Made, but Significant Requirements
and Recommendations Not Yet Complete

GAO- 01- 1075

Page i GAO- 01- 1075 Open Pipeline Safety Mandates Letter 1

Results in Brief 1 Background 3 OPS Has Completed Some Statutory
Requirements, but Other

Important Requirements Remain Uncompleted 4 The Safety Board Is Encouraged
by OPS? Efforts to Implement

Recommendations, but Concerns Remain 8 Conclusions 9 Recommendation for
Executive Action 10 Agency Comments and Our Evaluation 10 Scope and
Methodology 11

Appendix I OPS? Actions on Pipeline Safety Statutory Requirements Reported
as Open in May 2000 (As of September 1, 2001) 13

Tables

Table 1: Pipeline Safety Statutory Requirements Reported as Implemented
Since May 2000 5 Table 2: Requirements in the Pipeline Safety
Reauthorization Act of

1988 (P. L. 100- 561, Oct. 31, 1988) 13 Table 3: Requirements Related to
Offshore Pipeline Navigational

Hazards (P. L. 101- 599, Nov. 16, 1990) 14 Table 4: Requirements in the
Pipeline Safety Act of 1992 (P. L. 102508, Oct. 24, 1992) 14 Table 5:
Requirements in the Accountable Pipeline Safety and

Partnership Act of 1996 (P. L. 104- 304, Oct. 12, 1996) 16

Abbreviations

OPS Office of Pipeline Safety Contents

Page 1 GAO- 01- 1075 Open Pipeline Safety Mandates

September 28, 2001 The Honorable James L. Oberstar Ranking Democratic Member
Committee on Transportation

and Infrastructure House of Representatives

The Honorable Rick Larsen House of Representatives

In May 2000, we reported on the performance of the Department of
Transportation?s Office of Pipeline Safety (OPS) in regulating the safety of
natural gas and hazardous liquid pipelines in the United States. 1 Among
other things, we found that the number of major pipeline accidents (those
resulting in a fatality, an injury, or property damage of $50,000 or more)
increased by about 4 percent annually from 1989 through 1998- from about 190
in 1989 to about 280 in 1998. In addition, OPS had not implemented 22
statutory requirements and 39 recommendations from the National
Transportation Safety Board (the Safety Board) that were designed to improve
pipeline safety. Furthermore, a number of these requirements and
recommendations were over a decade old. Concerned about the potential impact
of OPS? responsiveness on pipeline safety, you asked us to assess OPS?
progress in implementing these statutory requirements and Safety Board
recommendations since May 2000.

OPS has made progress in completing some of the statutory requirements that
were reported as open as of May 2000, but important requirements remain
uncompleted. OPS has fully implemented 6 of the 22 statutory requirements,
including issuing a final rule to specify how pipeline operators should
report underwater abandoned pipeline facilities that present a hazard to
navigation and reporting on the results of its risk management demonstration
projects. However, 11 of the 22 requirements- including some significant,
long- standing requirements- have not been fully implemented. For example,
while OPS has initiated a series of comprehensive rules designed to improve
pipeline safety and

1 Pipeline Safety: The Office of Pipeline Safety Is Changing How It Oversees
the Pipeline Industry (GAO/ RCED- 00- 128, May 15, 2000).

United States General Accounting Office Washington, DC 20548

Results in Brief

Page 2 GAO- 01- 1075 Open Pipeline Safety Mandates

implement several statutory requirements concerning periodic internal
inspections and safety shut- off valves, the agency does not anticipate
completing the last rule in the series until fall 2002. Finally, OPS has
closed the remaining five requirements that it reported as open in May 2000
because it now considers them to be superseded by or amendments to other
requirements or because OPS does not believe that it is required to take
further action. Although OPS did not fulfill these requirements, we agree
with OPS? rationale for considering them closed.

OPS officials estimate that it will take a year or more to complete action
on 10 of the 11 open requirements. According to OPS officials, the agency
does not plan to fulfill the remaining open requirement- that it issue a
report on underwater abandoned pipeline facilities- primarily because it
believes there is insufficient data to conduct the study. We did not
evaluate whether sufficient data exist to complete the study. However, if
OPS believes that it cannot complete the study, we are recommending that the
department advise the Congress of the reasons why it is unable to complete
this study and, if appropriate, ask the Congress to relieve it of this
responsibility.

The Safety Board is encouraged by OPS? recent efforts to improve its
responsiveness, but remains concerned about the amount of time OPS has been
taking to implement recommendations. OPS continues to have the lowest rate
of any transportation agency for implementing recommendations from the
Safety Board. However, the Director of the Safety Board?s Office of Pipeline
Investigations views OPS? responsiveness as generally improved over its past
performance because OPS has initiated several activities in response to the
recommendations and communicates more frequently and constructively with the
Safety Board. While OPS is apparently working more constructively with the
Safety Board, the Safety Board has closed only one recommendation. In
addition, the Safety Board has issued 6 new recommendations, resulting in 44
open recommendations as of September 1, 2001- or 5 more than were open in
May 2000. OPS officials believe that the agency?s progress is better than
the Safety Board?s records indicate. According to OPS officials, the agency
will fulfill nearly half of the open recommendations by the end of 2001 and
most of the remaining recommendations by the end of 2002.

In commenting on a draft of this report, officials from the Department of
Transportation generally agreed with the report and its recommendation. They
stated that OPS is taking a long- term, strategic approach to address safety
goals by improving pipeline integrity and preventing damage to pipelines.
According to the officials, this approach is more beneficial than

Page 3 GAO- 01- 1075 Open Pipeline Safety Mandates

responding to individual requirements and recommendations as discrete
actions. For example, OPS plans to require pipeline operators to
comprehensively evaluate and respond to the entire range of risks to
pipelines; the requirements will include, but are not limited to, safety
practices that have been required by the Congress or recommended by the
Safety Board, such as internal inspections and safety valves.

OPS administers the national regulatory program to ensure the safe operation
of nearly 2.2 million miles of natural gas and hazardous liquid pipelines in
the United States. 2 The agency develops, issues, and enforces pipeline
safety regulations. These regulations contain minimum safety standards that
the pipeline companies that transport natural gas or hazardous liquids must
meet for the design, construction, inspection, testing, operation, and
maintenance of their pipelines. In general, OPS retains full responsibility
for inspecting pipelines and enforcing regulations on interstate pipelines,
and certifies states to perform these functions for intrastate pipelines. In
fiscal year 2000, OPS employed 97 people, 55 of whom were pipeline
inspectors.

Several federal statutes enacted since 1988 contain requirements designed to
improve pipeline safety and enhance OPS? ability to oversee the pipeline
industry. In addition, the Safety Board makes recommendations designed to
improve transportation safety to OPS and other federal agencies. These
recommendations are based on the Safety Board?s investigations of
transportation accidents, including significant pipeline accidents (such as
those involving fatalities). Many of these recommendations address the same
issues as the statutory requirements.

2 About 325,000 miles are natural gas transmission pipelines- primarily
interstate- that transport natural gas from sources to communities. About 1.
7 million miles are natural gas distribution pipelines- primarily
intrastate- that transport natural gas from transmission pipelines to
residential, commercial, and industrial customers. About 156,000 miles are
hazardous liquid pipelines- primarily interstate- that transport products
such as crude oil, diesel fuel, gasoline, jet fuel, anhydrous ammonia, and
carbon dioxide. Background

Page 4 GAO- 01- 1075 Open Pipeline Safety Mandates

OPS has made progress in implementing some of the 22 statutory requirements
that it reported as open in our May 2000 report but has not fully
implemented some significant, long- standing requirements. As of September
1, 2001, 6 of the 22 requirements have been closed as a result of OPS?
actions, 11 requirements are still open, and the remaining 5 have been
closed because OPS now considers them to be superseded by or amendments to
other requirements or because the agency does not believe it is required to
take further action.

The agency has fully implemented 6 of the 22 statutory requirements that it
classified as open in May 2000. (See table 1.) Three of these six
requirements were implemented in the last 16 months; OPS issued a final rule
to define underwater abandoned pipeline facilities that present a hazard to
navigation and specify how operators shall report these facilities, issued a
report on its Risk Management Demonstration Program, and conducted
activities to address population encroachment near pipelines. OPS had
completed action on the other three requirements prior to May 2000, but did
not report these actions to us at that time. (Appendix I provides the status
of OPS? actions to implement all 22 requirements as of September 1, 2001.)
OPS Has Completed

Some Statutory Requirements, but Other Important Requirements Remain
Uncompleted

Six Requirements Have Been Closed Due to OPS? Action

Page 5 GAO- 01- 1075 Open Pipeline Safety Mandates

Table 1: Pipeline Safety Statutory Requirements Reported as Implemented
Since May 2000 Requirement (year imposed) Action Periodic underwater
inspections (1992): Define ?exposed underwater pipeline? and ?hazard to
navigation or public safety.? OPS defined the terms in 49 C. F. R. 192.3 and
195.2 on

December 5, 1991 (56 F. R. 63764). At the time of our May 2000 report, OPS
did not report that it had fulfilled this requirement and classified it as
open.

Underwater abandoned pipeline facilities (1992): Define ?hazard to
navigation? with respect to underwater abandoned pipeline facilities and, by
April 24, 1994, specify how operators shall report such facilities.

OPS issued a final rule on underwater abandoned pipeline facilities on
September 8, 2000 (65 F. R. 54440).

Risk assessment report (1996): Not later than March 31, 2000, transmit to
the Congress a report on implementing and improving a risk assessment
process.

OPS issued a report, A Collaborative Framework for Office of Pipeline Safety
Cost- Benefit Analyses, on September 2, 1999. At the time of our May 2000
report, OPS reported that this was an interim report and classified this
requirement as open.

Risk management report (1996): Establish risk management demonstration
projects and report on the results of such projects by March 31, 2000.

OPS established a demonstration program in March 1997 and issued a report on
April 25, 2001.

Updating standards (1996): Update the industry standards that have been
adopted as part of the federal pipeline safety regulatory program.

OPS updated standards in September 1997 (Department of Transportation Docket
RSPA- 97- 2251). OPS proposed subsequent updates in March 2000 (65 F. R.
15290) and expects to issue a final rule in fall 2001. At the time of our
May 2000 report, OPS did not report the 1997 update and classified this
requirement as open.

Population encroachment (1996): (1) Make available to each state the land-
use recommendations in the Transportation Research Board?s report Pipelines
and Public Safety and (2) evaluate the recommendations and consider other
initiatives to make local planning and zoning entities more aware of issues
involving population encroachment along pipeline rights- of- way.

OPS sent the report to all states. OPS has conducted the activities listed
in the second part of the requirement and has requested $3 million in its
fiscal year 2002 budget to implement initiatives to address population
encroachment.

Source: OPS.

As of September 1, 2001, 11 requirements- including several from 1992 or
earlier that could significantly improve pipeline safety- remain
uncompleted. While OPS has made some progress on these requirements over the
last year, the agency estimates that it will take from several months to
more than a year to complete actions on them. For example, OPS is issuing a
series of rules requiring pipeline operators to develop an integrity
management program to assess and improve, where necessary, the safety of
pipeline segments in areas where the consequences of a pipeline failure
could be significant (called ?high consequence areas.?) 3

3 Under an integrity management program, pipeline operators are required to,
among other things, identify all segments of the pipeline that pass through
a high consequence area, conduct a baseline assessment of the integrity of
these segments, address any safety issues, reassess the integrity of the
pipeline at intervals not to exceed 5 years, and establish performance
measures to measure the program?s effectiveness. Eleven Requirements Are

Still Open

Page 6 GAO- 01- 1075 Open Pipeline Safety Mandates

This series represents a broad- based, comprehensive effort designed to
improve pipeline safety, as well as fulfill several specific statutory
requirements such as requirements to inspect pipelines periodically and
install valves to shut off the flow of product in the pipeline if a failure
occurs. In December 2000, OPS issued a final integrity management rule for
hazardous liquid pipelines that are at least 500 miles long. OPS still needs
to issue similar integrity management rules for hazardous liquid pipelines
that are less than 500 miles long, expected in late fall 2001, and for
natural gas transmission pipelines. The agency expects to issue a proposed
rule for transmission pipelines by the end of 2001 and a final rule in fall
2002. To facilitate the natural gas transmission rule, OPS officials have
been meeting with representatives of the pipeline industry, research
institutions, state pipeline safety agencies, and public interest groups to
understand how integrity management principles can best be applied to
improve the safety of gas pipelines. OPS also requested information and
clarification in June 2001 and plans to hold a public meeting with its
Natural Gas Technical Advisory Committee on this subject. According to OPS
officials, they are close to reaching consensus with the pipeline industry
and state agencies on safety standards for natural gas transmission
pipelines.

In addition, in response to a 1988 requirement to establish standards to
complete and maintain a pipeline inventory, OPS is establishing multiple
methods of collecting this information, such as annual reports, the
integrity management process, and a national pipeline mapping system. 4
According to OPS officials, they are collecting the necessary information
for hazardous liquid and gas transmission pipelines, but still need to
establish methods to collect additional information for gas distribution
pipelines. OPS does not plan to complete forms that will allow it to collect
such information until spring 2002- more than 13 years after the original
requirement. Finally, in response to a 1992 requirement to define ?gathering
line? and ?regulated gathering line,? OPS is still conducting studies to
identify which lines should be regulated. 5 OPS does not plan to issue a
final rule before mid- 2002.

4 As of September 2001, OPS had collected data through the national pipeline
mapping system- such as location, diameter, product transported, and
operating status- on 50 percent of the natural gas transmission pipelines
and 90 percent of the hazardous liquid pipelines.

5 Gathering pipelines collect natural gas or crude oil from producing wells
and carry the product to a natural gas transmission or hazardous liquid
pipeline.

Page 7 GAO- 01- 1075 Open Pipeline Safety Mandates

OPS officials estimate that it will take a year or more to implement 10 of
the 11 open requirements. OPS does not plan to take action on the remaining
open requirement to submit a report on underwater abandoned pipeline
facilities, including a survey of where such facilities are located and an
analysis of any safety hazards associated with them. 6 According to OPS
officials, the agency did not complete the report because there were
insufficient data available, and it would be expensive to develop the needed
data. OPS officials said they have analyzed to the extent possible all
available data, and they do not plan to proceed further. We did not
determine whether sufficient data exist or the cost to develop data to
complete the report.

OPS has closed the remaining five requirements that it reported as open in
May 2000 because it now considers them to be superseded by or amendments to
other requirements or because OPS believes it is no longer required to take
action. Although OPS did not fulfill these requirements, we agree with OPS?
rationale for considering them closed.

 OPS closed one requirement because it was replaced by a later requirement.
A 1988 statute required OPS to establish standards requiring that new and
replacement pipelines accommodate the passage of ?smart pigs?- mechanical
devices that can travel through the pipeline to record flaws in the
pipeline, such as dents or corrosion. Although OPS did not meet this
requirement, the agency considers it closed because it was superseded by a
similar requirement in a 1996 statute, which has not been completed.  OPS
closed three requirements from a 1996 statute that amended

requirements from a 1992 statute that have not been completed: (1) defining
?gathering lines? and ?regulated gathering lines,? (2) requiring the
periodic inspection of pipelines in high- density and environmentally
sensitive areas, and (3) establishing criteria to identify all pipeline
facilities located in areas that are densely populated and/ or
environmentally sensitive. In general, the amending provisions gave OPS more
flexibility in fulfilling the requirements by adding language such as ?where
appropriate? or ?if needed.? Although OPS considered these actions as open
in our May 2000 report, OPS now believes that since these three provisions
do not impose additional requirements they should not continue to be counted
separately.

6 This requirement dates from 1992; the report was due by October 1995. Five
Requirements Have

Been Closed Even Though OPS Did Not Take Action

Page 8 GAO- 01- 1075 Open Pipeline Safety Mandates

 OPS closed one requirement because it is no longer required to take
action. A 1996 statute required OPS to issue biennial reports to the
Congress on how the agency carried out its pipeline safety responsibilities
for the preceding two calendar years. OPS issued the first report in August
1997 but did not issue a report in 1999. This reporting requirement was
eliminated as of May 15, 2000, under the Federal Reports Elimination and
Sunset Act of 1995, as amended.

The Safety Board is encouraged by OPS? recent efforts to improve its
responsiveness, but it remains concerned about the amount of time OPS has
been taking to implement recommendations. The Director of the Safety Board?s
Office of Pipeline Investigations views OPS? responsiveness as generally
improving because OPS has recently initiated several activities to respond
to recommendations and made efforts to communicate better with the Safety
Board. To improve communications with the Safety Board, OPS has changed how
it informs the Safety Board of progress made on recommendations by
corresponding with the Safety Board as progress occurs on individual
recommendations, rather than providing periodic updates that may cover a
number of recommendations.

While the Safety Board is encouraged by OPS? recent efforts, it is reserving
final judgment on OPS? progress until the agency demonstrates that it can
follow through with actions to fully implement the recommendations. OPS
continues to have the lowest rate of any transportation agency for
implementing recommendations from the Safety Board; and, in May 2000 we
reported that the Safety Board was concerned that OPS had not followed
through on promises to implement recommendations. 7 According to the
Director of the Safety Board?s Office of Pipeline Investigations, the Safety
Board continues to be concerned about the amount of time OPS is taking to
follow through with the recommendations. For example, the Safety Board
initially recommended in 1987 that OPS require pipeline operators to
periodically inspect pipelines. OPS is responding to this recommendation
through its series of rules on integrity management that is expected to be
completed in 2002- 15 years after the Safety Board made the initial
recommendation.

7 OPS? overall response rate to the Safety Board?s recommendations has
improved slightly since May 2000- from 69 to 70 percent- but remains lower
than other agencies? response rates. This measure includes data from over 30
years of pipeline safety recommendations. The Safety Board Is

Encouraged by OPS? Efforts to Implement Recommendations, but Concerns Remain

Page 9 GAO- 01- 1075 Open Pipeline Safety Mandates

According to the Safety Board?s records, OPS has completed action on only 1
of the 39 Safety Board recommendations that were open as of May 2000. 8
Since then, the Safety Board has made 6 additional recommendations,
resulting in 44 open recommendations on pipeline safety as of September 1,
2001. However, OPS officials believe that the agency?s progress is much
greater than the Safety Board?s records indicate. The majority of the
recommendations are related to damage prevention (damage from outside forces
is the leading cause of pipeline accidents) and integrity management; OPS is
in the process of implementing several broad- based, complementary efforts
in these areas. According to OPS officials, the agency will have fulfilled
19 of the open recommendations by the end of 2001 and expects to complete
action on 16 additional recommendations by the end of 2002.

OPS has made some progress in implementing statutory requirements over the
past 16 months and expects to implement most of the remaining requirements
in the next year or so. OPS also believes that it will have completed action
on most of the 44 open Safety Board recommendations over this same time
period. Ultimately, however, it is the Safety Board?s decision on whether
OPS? actions fulfill the recommendations. While this progress represents an
improvement over OPS? previous performance, the agency has not fully
implemented some important requirements and recommendations to improve
pipeline safety that were imposed more than 10 years ago. The next 15 months
are important to OPS because, among other actions, the agency intends to
complete its series of integrity management rules within this time frame.
These rules are expected to improve the safety of pipelines and allow OPS to
fulfill a large portion of the outstanding statutory requirements and Safety
Board recommendations.

We are concerned that OPS does not plan to take action in response to the
1992 statutory requirement to report to the Congress on underwater abandoned
pipeline facilities. While we did not assess OPS? claims that it is not
feasible to complete the report due to insufficient data and funding,

8 In response to a recommendation to conduct joint government and industry
workshops on excavation damage prevention, OPS cosponsored a public meeting
to present a report on best practices for damage prevention and facilitated
the establishment of the Common Ground Alliance- a nonprofit organization
that focuses on preventing damage to underground facilities, including
pipelines. Conclusions

Page 10 GAO- 01- 1075 Open Pipeline Safety Mandates

OPS has made no response to this requirement, including advising the
Congress that it is not possible to complete the study.

If the department believes that it cannot complete a report to the Congress
on underwater abandoned pipeline facilities, we recommend that the Secretary
of Transportation direct OPS to advise the Congress of the reasons why it is
unable to complete this study and, if appropriate, ask the Congress to
relieve it of this responsibility.

We provided a draft of this report to the Department of Transportation for
its review and comment. We met with officials from the department, including
OPS? Associate Administrator, to obtain their comments. The officials
generally agreed with the draft report and its recommendation. The officials
stated that OPS is taking a long- term, strategic approach to address safety
goals by improving pipeline integrity and preventing damage to pipelines.
According to the officials, this approach is more beneficial than responding
directly to individual requirements and recommendations as discrete actions.
For example, OPS? integrity management rules will require pipeline operators
to comprehensively evaluate and respond to the entire range of risks to
pipelines; the rules will include, but are not limited to, safety practices
that have been required by the Congress or recommended by the Safety Board,
such as internal inspections and safety valves. The officials stated that
OPS has undertaken several broad- based, complementary efforts, particularly
focused on pipeline integrity and damage prevention that, when completed,
are expected to improve pipeline safety and fulfill many specific statutory
requirements and Safety Board recommendations. They said that such a process
requires OPS- working cooperatively with state and local officials and the
pipeline industry- to thoroughly explore the safety risks faced by different
types of pipelines, devise solutions that work for each unique pipeline, and
carefully assess the costs and expected benefits of various methods of
mitigating risks. The officials expect that, within a year, the results of
these efforts will become apparent to the Congress and the public.

In response to OPS? comments, we provided more detailed information on
specific actions OPS has taken to improve pipeline safety, where
appropriate. Recommendation for

Executive Action Agency Comments and Our Evaluation

Page 11 GAO- 01- 1075 Open Pipeline Safety Mandates

To determine OPS? progress in responding to statutory requirements, we asked
OPS officials to identify actions the agency has taken to respond to
requirements. We then collected and reviewed documentation on these actions,
such as published rules and reports. To determine OPS? progress in
responding to recommendations from the Safety Board, we collected and
analyzed information from the Safety Board on the status of pipeline safety
recommendations. We also interviewed the Safety Board?s Director of the
Office of Railroad, Pipeline, and Hazardous Materials Investigations to
discuss OPS? progress in responding to the Safety Board?s recommendations.
Consistent with the approach used for our May 2000 report, we relied on OPS
and the Safety Board to identify which actions were open and did not attempt
to determine whether these open actions were, in actuality, completed. In
addition, we did not assess the adequacy of OPS? responses to statutory
requirements or the Safety Board?s recommendations. We performed our work
from July through September 2001 in accordance with generally accepted
government auditing standards.

As arranged with your office, unless you publicly announce its contents
earlier, we plan no further distribution of this report until 7 days after
the date of this letter. At that time, we will send copies of this report to
congressional committees and subcommittees with responsibilities for
transportation safety issues, the Secretary of Transportation, the
Administrator of the Research and Special Programs Administration, the
Director of the Office of Management and Budget, and the Acting Chairman of
the National Transportation Safety Board. We will make copies available to
others upon request and on our home page at http:// www. gao. gov. Scope and

Methodology

Page 12 GAO- 01- 1075 Open Pipeline Safety Mandates

If you or your staff have any questions about this report, please contact me
at (202) 512- 2834 or guerrerop@ gao. gov. Key contributors to this report
were Helen Desaulniers, Judy Guilliams- Tapia, James Ratzenberger, and Sara
Vermillion.

Peter F. Guerrero Director, Physical Infrastructure Issues

Appendix I: OPS? Actions on Pipeline Safety Statutory Requirements Reported
as Open in May 2000 (As of September 1, 2001)

Page 13 GAO- 01- 1075 Open Pipeline Safety Mandates

Table 2: Requirements in the Pipeline Safety Reauthorization Act of 1988 (P.
L. 100- 561, Oct. 31, 1988) No. Section Statutory requirement Status

1 102 (gas) 202 (liquid)

Pipeline inventory: Establish standards to require operators, within 1 year,
to complete and maintain an inventory of all types of pipe used, including
the materials used and a history of any leaks.

Open for natural gas distribution pipelines: OPS currently collects
information on pipeline accidents through annual reports from the industry.
OPS is planning to revise the form it uses to collect information for these
annual reports to improve inventory information. These revisions would apply
to calendar year 2002 data and be due 03/ 15/ 03. OPS is also collecting
more detailed inventory information on plastic pipelines, which constitute
about 50 percent of distribution pipelines.

For natural gas transmission pipelines, OPS has established a national
pipeline mapping system and, as of 09/ 01, has collected location and
inventory information on 50 percent of transmission pipelines. In addition,
OPS collects pipeline accident and inventory information through annual
reports from the industry. OPS also plans to require operators to collect
and maintain comprehensive inventory information as part of its integrity
management initiative.

For hazardous liquid pipelines, OPS has established a national pipeline
mapping system and, as of 09/ 01, has collected information on 90 percent of
hazardous liquid pipelines. In addition, OPS requires operators to collect
and maintain comprehensive inventory information as part of its integrity
management initiative. OPS also plans to require operators to provide
accident and inventory information in annual reports, which would apply to
calendar year 2002 data and be due 03/ 15/ 03. 2 108( b) (gas)

207( b) (liquid)

Smart pig accommodation: Establish standards requiring that new and
replacement pipe shall accommodate the passage of smart pig inspection
devices.

Closed- superseded: OPS did not meet this requirement. However, the
requirement was superseded by P. L. 104- 304 (49 U. S. C. 60102( f)( 1)).
[See requirement #16 in this appendix.] At the time of our 05/ 00 report,
OPS reported that this requirement was open. 3 108( c) (gas) Master meter
study: Assess the need for an

improved inspection program for master meter systems and issue a report
within 18 months.

Open: A final report, An Analysis of Natural Gas Master Meter Systems
(Definition and Program) From a Federal Perspective, was issued 06/ 15/ 79.
Following a survey of the states, an additional study on master meter
systems was drafted, and data in this report are currently being updated.
OPS plans to issue the report by the end of 2001.

Source: For columns 1 and 2, GAO?s analysis of pipeline safety statutes; for
column 3, status reports from OPS.

Appendix I: OPS? Actions on Pipeline Safety Statutory Requirements Reported
as Open in May 2000 (As of September 1, 2001)

Appendix I: OPS? Actions on Pipeline Safety Statutory Requirements Reported
as Open in May 2000 (As of September 1, 2001)

Page 14 GAO- 01- 1075 Open Pipeline Safety Mandates

Table 3: Requirements Related to Offshore Pipeline Navigational Hazards (P.
L. 101- 599, Nov. 16, 1990) No. Section Statutory requirement Status

4 1( a) (gas) 1( b) (liquid)

Permanent inspections: Establish an inspection program for offshore and
navigable water pipelines no later than 30 months after 11/ 16/ 90 (as
enacted, limited to the Gulf of Mexico and its inlets).

Open for natural gas pipelines: OPS signed a memorandum of understanding
with the Minerals Management Service in the Department of the Interior to
define inspection responsibilities for pipelines on the Outer Continental
Shelf. OPS anticipates publishing a proposed rule to further clarify
inspection responsibilities for gas and hazardous liquid pipelines that
cross directly into state waters in fall 2001 and a final rule by the end of
2001.

For large liquid pipelines, OPS has issued a final rule on pipeline
integrity management for these pipelines in high consequence areas (65 F. R.
75378, 12/ 01/ 00), which includes offshore and commercially navigable
waterways.

Source: For columns 1 and 2, GAO?s analysis of pipeline safety statutes; for
column 3, status reports from OPS.

Table 4: Requirements in the Pipeline Safety Act of 1992 (P. L. 102- 508,
Oct. 24, 1992) No. Section Statutory requirement Status

5 102( a)( 2) (gas) 202( a)( 2) (liquid)

High- density population areas (for natural gas and liquid) and
environmentally sensitive areas (for liquid): Within 2 years, issue
regulations establishing criteria to identify all pipeline facilities in
high- density and environmentally sensitive areas.

P. L. 104- 304 (49 U. S. C. 60109( b)) changed language concerning what
areas should be included as environmentally sensitive. [See requirement #20
in this appendix.]

Open for natural gas pipelines and small liquid pipelines: OPS held a public
meeting on 02/ 12/ 01 to address issues related to the development of
proposed integrity management rules for natural gas transmission pipelines,
including how to define ?high consequence areas? for these pipelines. OPS
plans to develop a proposed rule for these pipelines soon, based on public
comments, and anticipates issuing a final rule in fall 2002. OPS has
proposed a rule on pipeline integrity management for small liquid pipelines
in high consequence areas (66 F. R. 15821, 03/ 21/ 01) and expects to issue
a final rule by late fall 2001.

For large liquid pipelines, OPS has issued a final rule on pipeline
integrity management for these pipelines in high consequence areas (65 F. R.
75378, 12/ 01/ 00). 6 103( 5) (gas)

203( 5) (liquid)

Update inspections/ smart pigs: Within 3 years, issue regulations requiring
periodic inspections of pipelines in high- density and environmentally
sensitive areas, specifying the circumstances, if any, under which
inspections should be conducted using smart pigs; when smart pigs are not
required, require an inspection method that is at least as effective in
providing for the safety of the pipeline.

This requirement was amended by P. L. 104- 304 (49 U. S. C. 60102( f)( 2)).
As amended, regulations

Open for natural gas pipelines and small liquid pipelines: OPS held a public
meeting on 02/ 12/ 01 to address issues related to developing proposed
integrity management rules for natural gas transmission pipelines in high
consequence areas, including inspection frequency and the use of smart pigs.
OPS plans to develop a proposed rule for these pipelines soon, based on
public comments, and anticipates issuing a final rule in fall 2002. OPS has
proposed a rule on pipeline integrity management for small liquid pipelines
in high consequence areas that addresses these requirements (66 F. R. 15821,
03/ 21/ 01) and

Appendix I: OPS? Actions on Pipeline Safety Statutory Requirements Reported
as Open in May 2000 (As of September 1, 2001)

Page 15 GAO- 01- 1075 Open Pipeline Safety Mandates

No. Section Statutory requirement Status

are required, if necessary. [See requirement #17 in this appendix.] expects
to issue a final rule by late fall 2001.

For large liquid pipelines, OPS has issued a final rule on pipeline
integrity management for these pipelines in high consequence areas (65 F. R.
75378, 12/ 01/ 00). 7 212 (liquid) Emergency flow restriction devices: (1)
Within

2 years, survey and assess the effectiveness of emergency flow restriction
devices (including remotely controlled valves and check valves) and other
procedures, systems, and equipment used to detect and locate pipeline
ruptures and minimize product releases from pipeline facilities and (2)
within 2 years after the survey and assessment, issue regulations
prescribing the circumstances under which operators must use emergency flow
restriction devices and other procedures, systems, and equipment.

Open for small liquid pipelines: The Research and Special Programs
Administration issued a study on emergency flow restriction devices on 09/
29/ 95. OPS has proposed a rule on pipeline integrity management for liquid
pipelines that are less than 500 miles long that addresses these
requirements (66 F. R. 15821, 03/ 21/ 01) and expects to issue a final rule
by late fall 2001.

For large liquid pipelines, OPS has issued a final rule on pipeline
integrity management for these pipelines in high consequence areas (65 F. R.
75378, 12/ 01/ 00). 8 108( 5) (gas)

207( 5) (liquid)

Periodic underwater inspections: Within 2 years, define what constitutes an
?exposed underwater pipeline? and what constitutes a ?hazard to navigation
or public safety.?

Closed: Duplicative of closed requirement. OPS defined the terms in 49 C. F.
R. 192.3 and 195.2 on 12/ 05/ 91 (56 F. R. 63764). At the time of our 05/ 00
report, OPS reported that this requirement was open. 9 109( b) (gas)

208( b) (liquid)

Gathering lines: Within 2 years, issue a regulation defining a ?gathering
line? and within 3 years, issue a regulation defining a ?regulated gathering
line.?

P. L. 104- 304 (49 U. S. C. 60101( b)( 2)) changed language regarding
regulated gathering lines from ?shall? to ?if appropriate, shall.? [See
requirement #13 in this appendix.]

Open: OPS has completed a review of an industry proposal but additional work
is necessary. OPS is coordinating with state partners and other federal
agencies to develop a regulatory approach prior to beginning rulemaking. OPS
anticipates issuing a proposed rule in the beginning of 2002 and a final
rule after mid- 2002.

10 117 (gas) 216 (liquid)

Underwater abandoned pipeline facilities:

Identify what constitutes a ?hazard to navigation? regarding underwater
abandoned pipeline facilities and, within 18 months, specify how operators
shall report such facilities.

Closed: OPS has issued a final rule on underwater abandoned pipeline
facilities (65 F. R. 54440, 09/ 08/ 00).

11 306 Underground utility location technologies:

Carry out a research and development program on these technologies.

Open: OPS received funds in its fiscal year 2000 and 2001 research budgets
for outside force damage research (which includes underground utility
locating technologies). With these funds, OPS has entered into a cooperative
agreement with the Gas Technology Institute for research into two areas:
smart pig technology to identify mechanical damage and realtime monitoring
of acoustic signals generated by boring equipment and transmitted by the gas
stream. OPS is scheduling research into underground utility locating
technologies for fiscal year 2002. 12 307 Underwater abandoned pipeline
facilities:

Undertake a study of such facilities and, within 3 years, submit a report to
the Congress on the results of the study.

Open: OPS does not plan to complete this report due to insufficient data.

Source: For columns 1 and 2, GAO?s analysis of pipeline safety statutes; for
column 3, status reports from OPS.

Appendix I: OPS? Actions on Pipeline Safety Statutory Requirements Reported
as Open in May 2000 (As of September 1, 2001)

Page 16 GAO- 01- 1075 Open Pipeline Safety Mandates

Table 5: Requirements in the Accountable Pipeline Safety and Partnership Act
of 1996 (P. L. 104- 304, Oct. 12, 1996) No. Section a Statutory requirement
Status

13 49 U. S. C. 60101( b)( 2) 3( b)

Gathering lines: Modify the requirement to define ?regulated gathering line?
by changing ?shall? to ?if appropriate, shall.?

Closed- amending law: Since our 05/ 00 report was issued, OPS has
reclassified this requirement as closed because it amends a previous
statutory requirement, P. L. 102- 508, sections 109( b) and 208( b). [See
requirement #9 in this appendix.] 14 60102( b)( 7)

4( b)

Risk assessment report: Not later than 03/ 31/ 00, transmit to the Congress
a report that (1) describes the implementation of the act?s risk assessment
requirements and (2) includes any recommendations that would make the risk
assessment process a more effective means of assessing the benefits and
costs associated with alternative regulatory and nonregulatory options in
prescribing standards.

Closed: OPS convened a team of industry, government, and public interest
stakeholders, who produced a report,

A Collaborative Framework for Office of Pipeline Safety Cost- Benefit
Analyses (09/ 02/ 99). The report is available in the Department of
Transportation Docket (RSPA- 99- 6045). At the time of our 05/ 00 report,
OPS considered this requirement open and reported that the 1999 report was
an interim report and that a final report was being cleared for issuance.

15 60126 5( a)

Risk management report: Establish risk management demonstration projects and
report on their results by 03/ 31/ 00.

Closed: OPS established a Risk Management Demonstration Program in 03/ 97
and issued a final report in 04/ 01. 16 60102( f)( 1)

4( e)

Standards on accommodating smart pigs:

Requires new and replacement natural gas transmission and hazardous liquid
pipelines to accommodate ?smart pigs;? allows the extension of such
standards to existing pipelines.

Open: On 04/ 12/ 94, OPS issued a final rule requiring new and replacement
gas and hazardous liquid pipelines to be designed and constructed to
accommodate the passage of smart pigs (59 F. R. 17275). On 09/ 30/ 94, OPS
issued a notice of proposed rulemaking in response to petitions for
reconsideration regarding replacement of parts of gas transmission lines in
less populated areas and replacement of gas transmission lines located
offshore (59 F. R. 49896). On 02/ 07/ 95, OPS suspended enforcement of the
final rule as it applies to modification of line sections in onshore gas
pipelines and as it applies to new and existing offshore gas pipelines (60
F. R. 7133). The 04/ 94 final rule continues to be enforced for all
hazardous liquid pipelines, new onshore gas transmission pipelines, and the
actual replaced line pipe, valves, fittings, and other line components in
onshore gas transmission lines. No final rule has been published on the
issues raised in the 09/ 94 proposed rule. The gas pipeline integrity
management rule, expected in Fall 2002, is expected to address the
accommodation of smart pigs for gas transmission pipelines in high
consequence areas and OPS plans to take action for other pipelines, as well.
17 60102( f)( 2)

4( e)

Periodic inspections: Modify the requirement for the Secretary to prescribe
periodic inspections of each pipeline identified in high density and
environmentally sensitive areas by inserting ?if necessary, additional?
after ?shall prescribe.?

Closed- amending law: Since our 05/ 00 report was issued, OPS has
reclassified this requirement as closed because it amends a previous
statutory requirement, P. L. 102- 508, sections 103( 5) and 203( 5). [See
requirement #6 in this appendix.]

Appendix I: OPS? Actions on Pipeline Safety Statutory Requirements Reported
as Open in May 2000 (As of September 1, 2001)

Page 17 GAO- 01- 1075 Open Pipeline Safety Mandates

No. Section a Statutory requirement Status

18 60102( l) 4( f)

Updating standards: To the extent appropriate and practicable, update the
standards incorporated by the industry that have been adopted as part of the
federal pipeline safety regulatory program.

Closed: OPS updated these standards in 09/ 97 (Department of Transportation
Docket RSPA- 97- 2251). OPS has proposed subsequent updates (65 F. R. 15290,
03/ 22/ 00) and expects to issue a final rule in fall 2001. At the time of
our 05/ 00 report, OPS classified this requirement as open and did not
report its 1997 action. 19 60102( j)( 3)

4( b)

Remotely controlled valves: (1) By 06/ 01/ 98, survey and assess the
effectiveness of remotely controlled valves to shut off the flow of natural
gas in the event of a rupture and (2) determine whether the use of remotely
controlled valves is technically and economically feasible and would reduce
the risks associated with a rupture; (3) within 1 year of completing the
survey and assessment, if the use of valves is feasible and would reduce
risks, prescribe standards for the use of these valves, including
requirements for their use in densely populated areas.

Open: OPS published a report in 09/ 99 concluding that remotely controlled
valves are technically, but not economically, feasible. At a public meeting
on 11/ 04/ 99, OPS proposed that criteria, such as a definitive time to shut
off a ruptured section in a high consequence area, be considered. OPS plans
to propose criteria for the use of remotely controlled valves in a proposed
rule on integrity management of natural gas transmission pipelines in high
consequence areas. The agency plans to develop this proposed rule soon,
based on public comments, and anticipates issuing a final rule in fall 2002.

20 60109( b) 7( b)

Unusually sensitive areas: Changes language from ?shall include? to ?shall
consider? under areas to be included as unusually sensitive; adds drinking
water and wildlife resources as considerations; and deletes earthquakes and
other ground movement as considerations.

Closed- amending law: Since our 05/ 00 report was issued, OPS has
reclassified this requirement as closed, since it amends a previous
statutory requirement, P. L. 102- 508, sections 102( a)( 2) and 202( a)( 2).
[See requirement #5 in this appendix.]

21 60124 15( 2)

Biennial reports: Not later than 08/ 15/ 97 and every 2 years thereafter,
submit to the Congress a report on how pipeline safety activities were
carried out during the 2 immediately preceding calendar years.

Closed- not completed: OPS issued a report in 08/ 97 but did not issue a
report in 1999. As of 05/ 15/ 00, this requirement was permanently
eliminated under the Federal Reports Elimination and Sunset Act of 1995, as
amended. OPS classified this requirement as open at the time of our 05/ 00
report. 22 60127( a)

16( a)

Population encroachment: (1) Make available to each state the land- use
recommendations in the Transportation Research Board?s special report
entitled

Pipelines and Public Safety (No. 219) and (2) evaluate the recommendations,
determine the extent to which they are being implemented, consider ways to
improve their implementation, and consider other initiatives to make local
planning and zoning entities more aware of issues involving the encroachment
of population along pipeline rights- of- way.

Closed: OPS sent the Transportation Research Board?s report to all states.
OPS has conducted activities related to the second part of the requirement
and has requested $3 million in its fiscal year 2002 budget to conduct
damage prevention activities, including implementing recommendations in the
Transportation Research Board?s report.

a Citations included in table 5 are to the United States Code and to the
Accountable Pipeline Safety and Partnership Act of 1996. Source: For columns
1 and 2, GAO?s analysis of pipeline safety statutes; for column 3, status
reports from OPS.

(544004)

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