Tag Archives: National Transportation Safety Board

NTSB blame multiple corrosion cracks & ‘weak’ regulations – Kalamazoo Oil Spill

The National Transportation Safety Board blamed multiple corrosion cracks and “pervasive organizational failures” at the Calgary-based Enbridge pipeline company for a more-than-20,000-barrel oil spill two years ago near Michigan’s Kalamazoo River.

The cost of the spill has reached $800 million and is rising, the NTSB said, making the pipeline rupture the most expensive on-shore oil spill in U.S. history. The pipeline’s contents — heavy crude oil from Canada’s oil sands — have made the spill a closely watched case with implications for other pipelines carrying such crude.

The NTSB also blamed “weak federal regulations” by the Pipeline and Hazardous Materials Safety Administration for the accident, which spilled at least 843,444 gallons of oil into a tributary of the Kalamazoo in Marshall, Mich. The oil spread into a 40-mile stretch of the Kalamazoo and a nearby wetlands area.

“This accident is a wake-up call to the industry, the regulator, and the public,” NTSB Chairman Deborah A.P. Hersman said in a statement.  She added that “for the regulator to delegate too much authority to the regulated to assess their own system risks and correct them is tantamount to the fox guarding the hen house.”

The spill began about 5:58 p.m. on July 25, 2010, when a 30-inch diameter pipeline ruptured. Twice, Enbridge workers tried to restart the pipeline after alarms about abnormal pressure in the line and 81 percent of the oil spilled over 17 hours after those alarms, the NTSB said.

“We believe that the experienced personnel involved in the decisions made at the time of the release were trying to do the right thing,” Enbridge’s chief executive, Patrick D. Daniel, said.“As with most such incidents, a series of unfortunate events and circumstances resulted in an outcome no one wanted.”

The case is being scrutinized by industry and environmental groups because it could threaten plans to build new pipelines to carry crude from Canada’s oil sands, or tar sands, into the United States. TransCanada’s controversial Keystone XL pipeline is one of the plans awaiting approval.

The NTSB, part of the Transportation Department, said the Enbridge pipeline break “was the result of multiple small corrosion-fatigue cracks that over time grew in size and linked together, creating a gaping breach in the pipe measuring over 80 inches long.”

SOURCE: http://www.washingtonpost.com/business/economy/ntsb-blames-enbridge-weak-regulations-in-kalamazoo-oil-spill/2012/07/10/gJQAWzqgbW_story.html

City of San Francisco sues to force feds to improve pipeline safety

The city of San Francisco took the unusual step Tuesday of asking a judge to force federal natural-gas safety regulators to step up efforts in California, saying the government “abjectly failed” to enforce pipeline laws before and after the 2010 explosion that devastated a San Bruno neighborhood.

At issue in City Attorney Dennis Herrera’s lawsuit, filed in U.S. District Court in San Francisco, is the performance of the little-known U.S. Pipeline and Hazardous Materials Safety Administration. Although it is charged with enforcing federal safety law, the agency relies on states to do much of its oversight.

Herrera’s suit says federal officials never set standards and let California’s enforcement dwindle in the years leading up to the September 2010 explosion of a PG&E pipeline in San Bruno.

‘Blind trust in operators’

In its investigative report on the blast, which killed eight people and destroyed 38 homes, the National Transportation Safety Board recommended that the pipeline agency tighten regulations on operators. The board’s chairwoman, Deborah Hersman, said PG&E had “exploited weaknesses in a lax system of oversight, and regulatory agencies that placed a blind trust in operators to the detriment of public safety.”

Herrera’s lawsuit echoes those findings, saying the pipeline agency stood by for more than a decade while the California Public Utilities Commission failed to detect PG&E’s safety problems, questionable pipeline-management practices and shoddy record keeping.

The state agency allowed utilities to police and report their own safety violations in lieu of being fined. The agency has changed its approach since the San Bruno disaster and recently proposed a $16.8 million penalty against PG&E for failing to conduct leak inspections on several miles of gas distribution pipelines in the East Bay.

“In the absence of any meaningful oversight by PHMSA, the CPUC has, for decades, forsaken its duty to enforce federal pipeline safety standards,” the city said in its suit. Under those circumstances, the suit said, “it is not a question of if another pipeline will explode, but a question of when.”

The pipeline safety agency issued a statement Tuesday declining to comment on the lawsuit but stressing its “core” commitment to safety.

“That’s why we devoted hundreds of hours of staff support and technical expertise to the NTSB and the California Public Utilities Commission to understand the San Bruno tragedy,” the agency said.

Failure to monitor

The suit said the federal government’s failures were putting San Franciscans at risk. It is the first time a local government has sought stricter regulation from the pipeline safety agency, said Rick Kessler, a lobbyist for the Pipeline Safety Trust, a nonprofit that focuses on safety improvements.

“If this brings better oversight and enforcement,” he said, “I applaud it.”

The suit seeks a court order to compel federal pipeline safety officials to set performance standards for state regulators who oversee gas transmission lines.

According to the complaint, the U.S. pipeline agency gave California $1.3 million in 2010 to oversee pipeline safety, yet “never meaningfully evaluated” how the money was spent or measured the effectiveness of the state’s program.

Federal officials knew California’s enforcement efforts had been understaffed since 1998, the suit said, resulting in a small proportion of federal funding being allocated to the state. Inspections became so infrequent by 2006 that the pipeline agency warned the Public Utilities Commission that California was jeopardizing public safety.

The explosion of a gas distribution pipeline in Cupertino in August, in which a condominium was destroyed, is evidence that the federal government hasn’t done enough to strengthen its regulatory efforts since the San Bruno disaster, the suit said.

That explosion happened because of a leak in a notoriously brittle type of 1970s-era plastic pipe, which the government recommended in 1998 that pipeline operators replace. Regulators have never ordered companies to do so, though.

Giving up authority

The federal agency, “for all practical purposes, has allowed gas pipeline operators like PG&E to regulate themselves and, in doing so, has improperly delegated its authority to enforce federal pipeline safety standards to those operators,” the suit said.

Although Herrera earlier threatened to sue the Public Utilities Commission as well, he said Tuesday that the state agency has improved its oversight of PG&E since 2010.

“We are participating in the administrative process to make sure the CPUC follows through on its pledge,” Herrera said in an interview.

PG&E had no comment on the suit except to emphasize actions it has taken since the San Bruno explosion to try to make its gas system safer.

SOURCE: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/02/14/MNKU1N7J3D.DTL#ixzz1mZJosbrD

Obama signs pipeline safety bill

On Tuesday, President Obama signed into law a pipeline safety bill that gained momentum after a string of high-profile incidents, including a deadly Northern California explosion in 2010.

The bill, which passed Congress with rare bipartisan support, doubles the maximum fine for safety violations to $2 million, authorizes more pipeline inspectors and requires automatic shut-off valves on new or replaced pipelines “where economically, technically and operationally feasible.”

It does not include a National Transportation Safety Board recommendation to require such shut-off valves on existing pipelines in heavily populated areas. It took utility workers nearly 95 minutes to manually shut off gas spewing from a pipeline in San Bruno, Calif.

The September 2010 explosion killed eight people, injured dozens and destroyed 38 homes. Other pipeline malfunctions have occurred in Michigan, Montana and Pennsylvania.

The call for automatic shutoff values on existing pipelines has faced industry opposition because of cost. Rep. Jackie Speier, a Democrat who represents San Bruno, has vowed to continue to push for legislation that would require such shut-off valves on existing pipelines in populated areas.

The bill also requires pipeline operators to confirm, through records or testing, the maximum safe operating pressure of older, previously untested pipelines in populated areas.

“This is landmark legislation that provides the regulatory certainty necessary for the pipeline industry to make critical investments and create American jobs,” Rep. Bill Shuster (R-Pa.), who chairs a House subcommittee that oversees pipelines, said in a statement Tuesday.

“Safety is always of the highest priority and this law strengthens current law, fills gaps in existing law where necessary, and focuses on directly responding to recent pipeline incidents with balanced and reasonable policies…”

The Obama administration is considering stronger measures. California has taken steps to strengthen pipeline safety rules, including requiring automatic shut-off valves in vulnerable areas.

SOURCE: http://latimesblogs.latimes.com/nationnow/2012/01/obama-signs-pipeline-safety-bill-.html

PG&E Proposes Spending $769M To Test Gas Pipelines, $2.2B Overall

PG&E Corp. (PCG) on Friday proposed spending $769 million over three years to test its natural gas pipelines as part of a $2.2 billion pipeline safety program, following a deadly pipeline explosion last year.

PG&E said it will pressure-test all of its untested pipe segments and expand use of automated pipeline shut-off valves. The utility has proposed passing on the cost of the project to its customers, with a $250 million rate increase in 2012 and subsequent increases of $30 million and $80 million in 2013 and 2014, respectively.

Overall, the utility said it plans to spend $2.2 billion through 2014 on pipeline safety costs.

In June, the California Public Utilities Commission ordered PG&E and the state’s other natural gas utilities, owned by Sempra Energy (SRE), to file by Friday plans to test or replace their gas transmission pipelines that haven’t been tested with high-pressure water techniques.

The plans are part of the CPUC’s effort to beef up the state’s pipeline safety regulations and improve its own oversight over the state’s thousands of miles of natural gas pipelines.

On Sept. 9, a PG&E pipeline in San Bruno, Calif., exploded, igniting a fireball that killed eight people, injured several others and destroyed 38 homes.

The National Transportation Safety Board, which has been investigating the cause of the explosion, is scheduled to issue a final report on its findings Aug. 30.

The NTSB has suggested in interim reports that poor record-keeping and a lack of safety tests by PG&E likely masked manufacturing defects in the 55-year-old San Bruno pipeline. The agency also found that the company didn’t provide the local fire department and other emergency responders with information they needed to react properly to the pipeline explosion.

The U.S. Department of Justice has been leading a criminal investigation into the explosion, and several lawsuits have been filed against the utility.

In June, an independent panel of experts concluded that PG&E had a “dysfunctional culture” that gave little heed to public safety or the high level of technical expertise needed to safely operate a gas pipeline system.

The CPUC has launched a separate probe to determine whether PG&E’s poor record-keeping violated any rules or laws that might warrant penalties. The CPUC also is considering new pipeline-safety rules for PG&E and other pipeline operators in the state and has promised to beef up its oversight of PG&E and the state’s pipelines.

Earlier this month, PG&E announced it hired a new chief executive, Anthony Earley, to replace former CEO Peter Darbee, who left the company in the wake of the disaster.

The company has said damage claims from the accident could total as much as $400 million, and that other costs associated with the accident could total $1.1 billion through 2012.

In July, credit rating company Fitch Ratings lowered its outlook on the company, saying continued fallout from the accident has added uncertainty to its credit status.

The utility said Friday it will enhance electronic monitoring of its gas system to quickly identify ruptures and replace segments in need of new piping. It also plans to transition to electronic records from paper documents to streamline the testing and repair process.

“This plan represents a clear break with the way PG&E and other gas utilities once approached pipeline safety,” Nick Stavropoulos, PG&E’s new executive vice president of gas operations, said in a statement.

SOURCE: http://online.wsj.com/article/BT-CO-20110826-714596.html