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Feds not doing a good job
overseeing natural gas pipelines,
audit finds
Pennsylvania, which maintains 46,000 miles of natural gas distribution pipelines, has a strong
record on safety, a PUC spokeswoman says.
May 10, 2014 | By Scott Kraus, Of The Morning Call
The federal agency that is supposed to make sure states keep a close eye on natural gas pipeline safety isn't doing a very
good job.
That's the conclusion of the U.S. Department of Transportation's Office of Inspector General in an audit report last week on
the oversight of pipeline safety.
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The federal Pipeline and Hazardous Materials Safety Administration must "strengthen its management and oversight of
state pipeline safety programs," the report concluded, and "until such actions are taken, the agency cannot be sure that all
safety weaknesses are identified and mitigated."
Among the problems listed in the audit: The federal agency failed to ensure state inspectors weigh risk factors such as
leakage or pipeline material in prioritizing inspections; used an outdated system to set state staffing requirements; and did
not set minimum qualifications for lead state inspectors.
The Lehigh Valley is no stranger to the dangers of old natural-gas pipelines. A February 2011 explosion in Allentown
caused by a leaking cast-iron distribution line killed five people at 13th and Allen streets and leveled part of a city block.
Mayor Ed Pawlowski has pushed aggressively for faster replacement of aging gas lines.
The Pennsylvania Public Utility Commission filed a complaint against UGI Utilities for violating several federal pipeline
safety regulations in connection with the blast. UGI paid a $500,000 fine to settle the complaint and promised to speed
pipeline replacement and improve leak detection.
Pipeline safety enforcement rests mainly with the states. All but two states are authorized to enforce federal pipeline safety
laws. Eighty-five percent of the nation's 2.5 million miles of pipelines, which move millions of gallons of hazardous liquids
and 55 billion cubic feet a day of natural gas, fall under state authority.
The states' efforts are overseen by a team of six evaluators at the Pipeline and Hazardous Materials Safety Administration.
Federal grants distributed by PHMSA cover up to 80 percent of the safety program costs for the 48 states not authorized to
enforce the federal laws. The PUC, which has 13 pipeline safety inspectors, is in line for $1.4 million in federal funding for
the current fiscal year.
Pennsylvania has a strong record on safety, PUC spokeswoman Jennifer Kocher said, and its inspectors are critical to
ensuring safe delivery of natural gas.
"It is our hope the report on PHMSA will further the dialogue on how to best improve safety," she said. "The PUC continues
to support any effort that will result in a more comprehensive strategy to increase the safety of the nation's pipelines."
Pennsylvania is home to 46,000 miles of natural gas distribution pipelines. Kocher said the state's regulations and
enforcement activities often exceed federal requirements.
The federal audit was launched after a 2010 interstate gas pipeline explosion in San Bruno, Calif., that killed eight people,
injured 58 and destroyed 38 homes.
As part of the audit, the inspector general reviewed five randomly selected states on 400 federal pipeline safety program
requirements and found 135 instances of non-compliance, compared to 12 identified by PHMSA in its own monitoring of the
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states.
Among the audit's findings were that the states were unable to show that safety inspections were conducted on time, lacked
procedures for some inspection activities and had not analyzed trends in gas companies' annual reports that could help
identify potential risks.
PHMSA administrator Cynthia Quarterman disputed some of the findings.
"State pipeline safety programs have reduced the rate of serious pipeline incidents for gas distribution pipelines by
approximately two-thirds over the last 30 years," she wrote.
The audit's recommendations include tightening inspector staffing requirements, improving inspector training and training
standards, and improving documentation of triennial reviews of state grant dollars.
Scott.kraus@mcall.com
Twitter @skraus
610-820-6745
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