A unanimous vote by the U.S. Senate on June 13 to approve reauthorization of the pipeline safety bill sends the measure to President Obama, who is expected to sign it into law.
The legislation, Securing America’s Future Energy: Protecting our Infrastructure of Pipelines and Enhancing Safety Act, or the SAFE PIPES Act of 2016, gained bipartisan support in both houses of Congress. Sponsored by Sen. Deb Fischer, R-Neb., it is intended to add transparency to the regulatory process administered by the Pipeline and Hazardous Materials Safety Administration (PHMSA).
The bill also strengthens the hand of the U.S. Department of Transportation in issuing emergency energy pipeline shutdown orders and mandates a study of pipeline operators’ management plans.
“We were pleased to work closely with committee leadership and staff in crafting a reauthorization bill that furthers our member companies’ commitments to safety,” Matthew Hite, GPA Midstream Association’s vice president of government affairs, said in a statement. “We look forward to working with the Pipeline and Hazardous Materials Safety Administration and Congress on its implementation.”
The bill also grants additional protections in the Great Lakes region following efforts by two lawmakers from Michigan—Democrat Sen. Gary Peters and Republican Rep. Candice Miller. The pair had expressed concerns about Enbridge Inc.’s Line 5, a pair of lines that move oil and natural gas at the bottom of the Straits of Mackinac.
Environmental groups have lobbied to shut down the lines, claiming that it poses an environmental threat. Enbridge maintains the pipelines are safe and have been thoroughly inspected.
The bill designates the Great Lakes as a high-consequence area in terms of pipeline review, meaning that companies operating in the region will be required to meet higher standards and craft specific plans to respond to environmental issues in the case of a spill.
Don Santa, president and CEO of the Interstate Natural Gas Association of America (INGAA), lauded the Senate’s passage of the act.
“This legislation meets several key goals, including directing the Pipeline and Hazardous Materials Safety Administration to regulate underground natural gas storage, something INGAA has advocated for several years,” he said in a statement. “S. 2276 also sets reasonable PHMSA authorization levels and directs PHMSA to complete the regulatory mandates under the Pipeline Safety, Regulatory Certainty and Job Creation Act of 2011.”
Joseph Markman can be reached at jmarkman@hartenergy.com and @JHMarkman.
Recommended Reading
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
Murphy Shares Drop on 4Q Miss, but ’25 Plans Show Promise
2025-01-31 - Murphy Oil’s fourth-quarter 2024 output missed analysts’ expectations, but analysts see upside with a robust Eagle Ford Shale drilling program and the international E&P’s discovery offshore Vietnam.
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
On The Market This Week (Jan. 27, 2025)
2025-01-31 - is a roundup of marketed oil and gas leaseholds in Appalachia and the Central Basin from select E&Ps.
Utica Liftoff: Infinity Natural Resources’ Shares Jump 10% in IPO
2025-01-31 - Infinity Natural Resources CEO Zack Arnold told Hart Energy the newly IPO’ed company will stick with Ohio oil, Marcellus Shale gas.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.