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. 102-

508, 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. SectionaStatutory 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 highdensity 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. Sectiona 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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