Title: OPS Programs

Federal/State Partnership

The U.S. Department of Transportation's Research and Special Programs Administration (RSPA), acting through the Office of Pipeline Safety (OPS), administers the national regulatory program to assure safe transportation of natural gas, petroleum, and other hazardous materials by pipeline. The Federal/State partnership is the cornerstone for assuring uniform implementation of the pipeline safety program nationwide.

Legislative Authority. Two statutes provide the framework for the Federal pipeline safety program. The Natural Gas Pipeline Safety Act of 1968 as amended (NGPSA) authorizes the Department to regulate pipeline transportation of natural (flammable, toxic, or corrosive) gas and other gases as well as the transportation and storage of liquefied natural gas (LNG). Similarly, the Hazardous Liquid Pipeline Safety Act of 1979 as amended (HLPSA) authorizes the Department to regulate pipeline transportation of hazardous liquids (crude oil, petroleum products, anhydrous ammonia, and carbon dioxide). Both of these Acts have been recodified as 49 U.S.C. Chapter 601.

Regulations The Federal pipeline safety regulations (1) assure safety in design, construction, inspection, testing, operation, and maintenance of pipeline facilities and in the siting, construction, operation, and maintenance of LNG facilities; (2) set out parameters for administering the pipeline safety program; and (3) delineate requirements for onshore oil pipeline response plans. The regulations are written as minimum performance standards.

The regulations are published in the Code of Federal Regulations, 49 CFR Parts 190-199:

190 -- Enforcement procedures
191 -- Natural gas reporting requirements
192 -- Natural gas
193 -- Liquefied natural gas
194 -- Response plans for onshore oil pipelines
195 -- Hazardous liquids
198 -- State grants
199 -- Drug and alcohol testing

Federal/State Authorities. While the Federal government is primarily responsible for developing, issuing, and enforcing pipeline safety regulations, the pipeline safety statutes provide for State assumption of the intrastate regulatory, inspection, and enforcement responsibilities under an annual certification. To qualify for certification, a state must adopt the minimum Federal regulations and may adopt additional or more stringent regulations as long as they are not incompatible. A State must also provide for injunctive and monetary sanctions substantially the same as those authorized by the pipeline safety statutes.

A state agency which does not satisfy the criteria for certification may enter into an agreement to undertake certain aspects of the pipeline safety program for intrastate facilities on behalf of OPS. While the state agency under an agreement will inspect pipeline operators to ascertain compliance with Federal safety regulations, any probable violations are reported to OPS for enforcement action. Every State is currently participating in the natural gas pipeline safety program except for Alaska, Hawaii, and Idaho. Fifteen States participate in the hazardous liquid pipeline safety program. Fewer States participate in the liquid program due to the significantly lower number of miles of liquid pipelines.

Federal pipeline statutes provide for exclusive Federal authority to regulate interstate pipelines. OPS may authorize a State to act as its agent to inspect interstate pipelines, but retains responsibility for enforcement of the regulations. Most States have supported the concept of common stewardship in pipeline safety. The resulting Federal/State partnership allows leveraging of resources to deliver a cost-effective program that has one of the best safety records in transportation.

A List of States Participating in the Federal/State Pipeline Safety Programs - a wordperfect document

Federal Grant Program OPS is authorized to reimburse a state agency up to 50 percent of the actual cost for carrying out its pipeline safety program, including the cost of personnel and equipment. The actual amount of Federal reimbursement depends upon the availability of appropriated funds and state program performance. The formula used to allocate funds includes performance factors such as extent to which the state asserts safety jurisdiction over pipeline operators, whether the state has adopted all federal requirements, and number and qualifications of state pipeline safety inspectors. OPS monitors the performance of the state agencies participating in the pipeline safety program through its regional offices.

Compliance. Achieving operator compliance with the pipeline safety regulations is critical to preventing accidents. A major aspect of compliance involves regular inspections of pipeline facilities and, in the event of a violation of the regulations, imposition of an appropriate administrative, civil, or criminal remedy. Federal and State pipeline inspectors perform standard, follow-up, drug, and construction inspections of pipeline operators. These inspectors also conduct accident investigations and respond to public complaints concerning pipeline operations.

OPS regional offices inspect interstate pipeline systems and intrastate facilities under direct Federal jurisdiction to determine operator compliance with pipeline safety regulations. These facilities include certain municipal and master meter gas systems that by State law are not subject to State regulation or intrastate pipelines in States where the state agency is not participating in the program.

Training. Training is fundamental to ensure a thorough understanding of the pipeline safety regulations. To educate Federal and State pipeline safety inspectors in compliance requirements, inspection techniques, and enforcement procedures, the Transportation Safety Institute (TSI) provides training at its facility in Oklahoma City. OPS requires new Federal and State inspectors to complete all applicable TSI training courses in a 3-year period. TSI also holds seminars for industry at State-selected sites across the country, primarily targeting small operators.

Data Analysis. OPS= information system program enters reported information in the data base and analyzes incident, pipeline inventory, and operator data to enhance OPS, States, and industry=s ability to assess problems in pipeline safety operations and determine the benefits of introducing new safety actions to prevent incidents or lessen damage when incidents cannot be avoided. These data largely come from accident/safety-related condition reports submitted by gas and hazardous liquid pipeline operators and annual reports submitted by gas pipeline operators which include information on miles and types of pipelines.

NAPSR/NARUC OPS works closely with the National Association of Pipeline Safety Representatives (NAPSR) and the National Association of Regulatory Utility Commissioners (NARUC). NAPSR is an affiliation of state program managers who are certified by OPS to administer the state pipeline safety programs. Each year, NAPSR holds national and regional meetings to promote information exchange on pipeline technology, inspection techniques, operational problems, significant accidents, and innovative approaches for strengthening the pipeline safety program. NAPSR, on an annual basis, submits resolutions on a variety of pipeline safety concerns of national scope for OPS consideration.

NARUC is an organization of governmental agencies committed to improving the quality and effectiveness of utility regulation in America. The Staff Subcommittee on Pipeline Safety under NARUC's Committee on Gas addresses specific pipeline safety issues.

Outreach OPS and their State partners regularly participate in joint government-industry-public committees and task forces to discuss and address concerns related to risk management, compliance, emerging technology, damage prevention, and environmental protection. Current initiatives include:

- The Risk Management Demonstration Program
- The Local Distribution Company Feasibility Study
- Technical Pipeline Safety Standards Committees
- Best Practices for One-Call Centers
- The National Pipeline Mapping System (GIS)

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