1. 2010 PODS User Conference Houston, Texas October 28, 2010 PHMSA Update John A. Jacobi, P.E. CATS Manager, SW Region

2. Outline Mission Statement Reorganization Reauthorization PIPA Damage Prevention ANPR Liquid Pipeline ANPR Substandard Pipe Advisory Bulletin

3. Pipeline Safety Program Mission Statement “To ensure the safe, reliable, and environmentally sound operation of the Nation’s pipeline transportation system.”

4. “One-Call Partners” (OCPs)

5. Reauthorization Every 4 years –PSIA 2002 –PIPES Act of 2006 Numerous Congressional Hearings PHMSA has provided a proposal: “Strengthening Pipeline Safety and Enforcement Act of 2010” (“SPSEA 2010”)

6. SPSEA 2010 (by §) 1.Short Title 2.Civil Penalties - up to $250,000 /violation and $2.5 million total; still 10 years prison; judicial review 3.Additional resources - 10 FTEs/year for 4 years 4.Infrastructure Data Collection - more and better data required

7. SPSEA 2010 (by §) 5.International Cooperation & Consultation 6.Gathering Lines - two years to study & remove exemptions for both gas and liquid lines. Requires additional data collection. Production still exempt. 7.Onshore oil flow lines - collect additional data. Flow lines still exempt.

8. SPSEA 2010 (by §) 8.Alaska Project Coordination and cost recovery for pipeline projects (operators to pay) 9.Cost Recovery for Design Reviews - 10 miles or longer; notice to PHMSA 120 days before construction begins. 10.Special Permits - filing fee and none issued to operators with “poor safety records”

9. SPSEA 2010 (by §) 11.Class Location & Integrity Management - revise or replace with more sophisticated risk-based models 12.Biofuel Pipelines - expressly regulated 13.Carbon Dioxide Pipelines - CO 2 transported as a gas regulated under Part 192

10. SPSEA 2010 (by §) 14.Non-Petroleum Hazardous Liquid Pipelines - study to see if more should be regulated (e.g. like liquid CO 2 and anhydrous ammonia)

11. SPSEA 2010 (by §) 15.Clarifications –Removes the word “intrastate” from §60108(a) –PHMSA can enforce against entities that are not both owners and operators –Limitations on enforcement against operators does not apply to pipeline operators 16.Appropriations ($$)

12. Reauthorization Comments Several other Bills out there Impossible to predict what will pass PHMSA WILL be reauthorized (most likely very late this year) PHMSA most likely will have additional jurisdiction and resources

13. PIPA Pipeline Informed Planning Alliance Focused on new development near existing pipelines Started in 2008 with numerous stakeholders “Final” version should be published on PHMSA web site this year!! Draft available at www.pstrust.org

14. Damage Prevention ANPR 74 FR 5597 et. seq.; October 29, 2009; Docket No. PHMSA-2009-0192 Over 200 comments PIPES Act of 2006 - would allow PHMSA to cite excavators BUT - PHMSA must develop criteria for state damage prevention programs and publish rulemaking NOPR should be out relatively soon

15. Liquid Pipeline ANPR 75 FR 63774 et. seq.; October 18, 2010; Docket No. PHMSA-2010-0229 Response to recent incidents and upcoming reauthorization Comment period open until 1/18/2011 Lots of issues - exemptions, HCAs, leak detection, Emergency Flow Restricting Devices, Valve Spacing, Repair Criteria, Stress Corrosion, etc.

16. Liquid Pipeline ANPR Could have a significant impact on liquid lines. Probably will not result in a final rulemaking anytime soon - BUT reauthorization could change that. We want to hear from the regulated community!! Something similar for gas pipelines may be reasonably anticipated.

17. Substandard Pipe Advisory Bulletin 74 FR 23930 et. seq.; May 21, 2009; Docket No. PHMSA-2009-0148 X-70 pipe and above may not meet grade stamp Primarily from foreign manufacturers Still being used Still being investigated Know your pipe!!!

18. QUESTIONS?? THANK YOU!! John A. Jacobi, P.E. 713-272-2839 (O) 281-685-7128 (C) john.jacobi@dot.gov