The Secretary of Transportation Washington, Dc 20590
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THE SECRETARY OF TRANSPORTATION WASHINGTON, DC 20590 May 08,2015 The Honorable John Thune Chairman, Committee on Commerce, Science, and Transportation United States Senate Washington, DC 20510 Dear Mr. Chairman: I am pleased to submit the Review of Existing Federal and State Regulations for Gas and Hazardous Liquid Gathering Lines to Congress, fulfilling the requirements of Section 21 of the Pipeline Safety, Regulatory Certainty, and Job Creation Act of2011. The Act requires the Secretary of Transportation to conduct a review of existing Federal and State regulations for gas and hazardous liquid gathering lines located onshore and offshore in the United States, including within the inlets of the Gulf of Mexico. The Secretary is also required include recommendations with respect to: (A)the sufficiency of existing Federal and State laws and regulations to ensure the safety of gas and hazardous liquid gathering lines; (B) the economic impacts, technical practicability, and challenges of applying existing Federal regulations to gathering lines that are not currently subject to Federal regulation when compared to the public safety benefits; and (C) subject to a risk-based assessment, the need to modify or revoke existing exemptions from Federal regulation for gas and hazardous liquid gathering lines. The Pipeline and Hazardous Materials Safety Administration (PHMSA) is the DOT agency responsible for administering the Department's national regulatory program to assure the safe transportation of gas, petroleum, and other hazardous materials by pipeline. To further conduct the analysis required by Section 21 of the Act, PHMSA commissioned an independent review by the Oak Ridge National Laboratory to determine the existence of regulatory requirements for the design, construction, operation, and maintenance of hazardous liquid or natural gas gathering lines, and to identify agency regulations specifically related to pipeline safety and mechanical integrity of gathering lines. Following the amendment of the regulations related to the oversight of onshore natural gas and hazardous liquid gathering lines in rural locations in 2006 and 2008, respectively, PHMSA is developing further proposed regulatory amendments regarding onshore natural gas and hazardous liquid gathering lines as part of its ongoing regulatory review process. Two advance notices of proposed rulemaking (ANPRM), titled "Pipeline Safety: Safety of On-Shore Hazardous Liquid Pipelines" and "Pipeline Safety: Safety of Gas Transmission Pipelines," were Page 2 The Honorable John Thune published in October 20 I 0 and August 20 I I, respectively, were initiated prior to the passage of the Act, and include safety practices and data co llection needs identified to date. Based on the study and the ANPRMs, PHMSA is considering the need to propose additional regulations to ensure the safety of natural gas and hazardous liquid gathering lines. Furthermore, and subject to a risk-based assessment and priori tization, PHMSA is reviewing the need to propose changes to existing exemptions from Federal regulation fo r gas and hazardous liquid gathering lines. As a part of the regulatory process, PHMSA will analyze the economic impact, technical practicability, and challenges of applying any proposed regulations to gathering lines that are not currently subj ect to Federal regulation when compared to public safety benefits. I have sent similar letters to the Ranking Member of the Senate Committee on Commerce, Science, and Transportation; the Chairman and Ranking Member of the House Committee on Transportation and Infrastructure; and the Chairman and Ranking Member of the House Committee on Energy and Commerce. If I can provide fmiher information or assistance, please feel free to call me. Anthony R.~ Foxx Enclosure THE SECRETARY OF TRANSPORTATION WASHINGTON, DC 20590 May 08,2015 The Honorable Bill Nelson Ranking Member, Committee on Commerce, Science, and Transportation United States Senate Washington, DC 20510 Dear Senator Nelson: I am pleased to submit the Review of Existing Federal and State Regulations for Gas and Hazardous Liquid Gathering Lines to Congress, fulfilling the requirements of Section 21 of the Pipeline Safety, Regulatory Certainty, and Job Creation Act of2011. The Act requires the Secretary of Transportation to conduct a review of existing Federal and State regulations for gas and hazardous liquid gathering lines located onshore and offshore in the United States, including within the inlets of the Gulf of Mexico. The Secretary is also required include recommendations with respect to: (A)the sufficiency of existing Federal and State laws and regulations to ensure the safety of gas and hazardous liquid gathering lines; (B) the economic impacts, technical practicability, and challenges of applying existing Federal regulations to gathering lines that are not currently subject to Federal regulation when compared to the public safety benefits; and (C) subject to a risk-based assessment, the need to modify or revoke existing exemptions from Federal regulation for gas and hazardous liquid gathering lines. The Pipeline and Hazardous Materials Safety Administration (PHMSA) is the DOT agency responsible for administering the Department's national regulatory program to assure the safe transportation of gas, petroleum, and other hazardous materials by pipeline. To further conduct the analysis required by Section 21 of the Act, PHMSA commissioned an independent review by the Oak Ridge National Laboratory to determine the existence of regulatory requirements for the design, construction, operation, and maintenance of hazardous liquid or natural gas gathering lines, and to identify agency regulations specifically related to pipeline safety and mechanical integrity of gathering lines. Following the amendment of the regulations related to the oversight of onshore natural gas and hazardous liquid gathering lines in rural locations in 2006 and 2008, respectively, PHMSA is developing further proposed regulatory amendments regarding onshore natural gas and hazardous liquid gathering lines as part of its ongoing regulatory review process. Two advance notices of proposed rulemaking (ANPRM), titled "Pipeline Safety: Safety of On-Shore Hazardous Liquid Pipelines" and "Pipeline Safety: Safety of Gas Transmission Pipelines," were Page 2 The Honorable Bill Nelson published in October 2010 and August 201 1, respectively, were initiated prior to the passage of the Act, and include safety practices and data collection needs identified to date. Based on the study and the ANPRMs, PHMSA is considering the need to propose additional regulations to ensure the safety of natural gas and hazardous liquid gathering lines. Furthermore, and subject to a risk-based assessment and prioritization, PHMSA is reviewing the need to propose changes to existing exemptions from Federal regulation for gas and hazardous liquid gathering lines. As a part of the regulatory process, PHMSA wi ll analyze the economic impact, technical practicability, and challenges of applying any proposed regulations to gathering lines that are not currently subject to Federal regulation when compared to public safety benefits. I have sent similar letters to the Chairman of the Senate Committee on Commerce, Science, and Transportation; the Chairman and Ranking Member of the House Committee on Transportation and Infrastructure; and the Chairman and Ranking Member of the House Committee on Energy and Commerce. If I can provide further information or assistance, please feel free to call me. Enclosure THE SECRETARY OF TRANSPORTATION WASHINGTON, DC 20590 May 08,2015 The Honorable Bill Shuster Chairman, Committee on Transportation and Infrastructure U.S. House of Representatives Washington, DC 20515 Dear Mr. Chairman: I am pleased to submit the Review of Existing Federal and State Regulations for Gas and Hazardous Liquid Gathering Lines to Congress, fulfilling the requirements of Section 21 of the Pipeline Safety, Regulatory Certainty, and Job Creation Act of2011. The Act requires the Secretary of Transportation to conduct a review of existing Federal and State regulations for gas and hazardous liquid gathering lines located onshore and offshore in the United States, including within the inlets of the Gulf of Mexico. The Secretary is also required include recommendations with respect to: (A)the sufficiency of existing Federal and State laws and regulations to ensure the safety of gas and hazardous liquid gathering lines; (B) the economic impacts, technical practicability, and challenges of applying existing Federal regulations to gathering lines that are not currently subject to Federal regulation when compared to the public safety benefits; and (C) subject to a risk-based assessment, the need to modify or revoke existing exemptions from Federal regulation for gas and hazardous liquid gathering lines. The Pipeline and Hazardous Materials Safety Administration (PHMSA) is the DOT agency responsible for administering the Department's national regulatory program to assure the safe transportation of gas, petroleum, and other hazardous materials by pipeline. To further conduct the analysis required by Section 21 of the Act, PHMSA commissioned an independent review by the Oak Ridge National Laboratory to determine the existence of regulatory requirements for the design, construction, operation, and maintenance of hazardous liquid or natural gas gathering lines, and to identify agency regulations specifically related to pipeline safety and mechanical integrity