UNITED STATES DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
Hearing on
Implementation of the Pipeline Inspection, Protection,
Enforcement and Safety Act of 2006 and Reauthorization of the
Pipeline Safety Program
Before the
Committee on Transportation and Infrastructure
Subcommittee on Railroads, Pipelines, and Hazardous Materials
United States House of Representatives
Written Statement of Cynthia L. Quarterman
Administrator
Pipeline and Hazardous Materials Safety Administration
U.S. Department Of Transportation
Expected Delivery 10:00 a.m.
May 20, 2010
Quarterman Written Statement
Implementation of the PIPES Act of 2006 and Reauthorizing Pipeline Safety
Petroleum Capacity Market Study. On June 1, 2008, PHMSA submitted to Congress a
final report on the domestic transport capacity of petroleum products by pipeline and to reduce
the likelihood of shortages of petroleum products or price disruptions due to shortages of
pipeline capacity.
Leak Detection Systems Study. On June 23, 2009, PHMSA submitted to Congress a
final report describing the capabilities and limitations of leak detection systems used by
hazardous liquid pipeline operators. The report also discusses ongoing investment by PHMSA
and research to improve the sensitivity of leak detection technology, particularly for hazardous
liquid operators. As we stated in the report, PHMSA has adequate oversight to evaluate the leak
detection capability of individual operators and has exercised authority as needed to compel
systems upgrades where warranted.
Internal Corrosion Control Regulations Study. On June 23, 2009, PHMSA submitted to
Congress a final report of its thorough review of the federal pipeline safety internal corrosion
control regulations, accident history, research findings, and consensus standards to determine if
such regulations are adequate. In our report to Congress, we found that existing regulations are
generally sufficient to achieve safety and environmental protection goals but that we were also
considering other near and long-term actions to further reduce the risk of internal corrosion.
Seven-Year Risk Assessment Study. In November 2007, PHMSA reported to Congress
on its review of the GAO report on the seven-year assessment interval and sent Congress
legislative recommendations necessary to implement the conclusions of that report. PHMSA
reviewed its experience with gas transmission operators’ implementation of integrity
management and the GAO report on this subject. We recommended that Congress amend the
law to provide us the authority to promulgate risk based standards for determining pipeline
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May 20, 2010 - - House T&I, Subcommittee on Railroads, Pipelines and Hazmat
Quarterman Written Statement
Implementation of the PIPES Act of 2006 and Reauthorizing Pipeline Safety
reassessment intervals. As a risk-based, data-driven organization, we continue to believe that a
scientific basis is the best way to determine safety decisions and the allocation of resources. We
have demonstrated that PHMSA and its state agency partners have the ability, experience, and
training to review the adequacy of engineering justification that would be presented to us by
operators seeking to vary the reassessment interval. In January 2008, we held a public meeting
on the technical basis for making decisions on assessment intervals. The bottom line is that we
believe these decisions should be made on a case-by-case basis, one operator at a time, and
segment by segment, so that relevant operating characteristics can be considered along with
individual operator performance.
II. BUILDING ON A SOLID FOUNDATION
As we continue to advance pipeline safety, we believe we have a solid foundation to
build on. We have accomplished a great deal, but much remains to be done to implement the
promise of the PIPES Act. We are committed to completing the two remaining initiatives
authorized by PIPES Act – completing the notice of proposed rulemaking to regulate low stress
pipelines this year, and taking the next step to implement federal enforcement of third party
excavation damage to pipelines.
We have accomplished many goals with our state partners; however, we need to make
sure that our state partners continue to receive the resources they need to implement not only
damage prevention initiatives but the distribution integrity management program. We hope that
the grant programs to states and communities supported and funded in the PIPES Act receive
continued support.
PHMSA also intends to update its enforcement strategy and penalties to deter future non-
compliance and incentivize better performance. We continue to make full use of the increased
civil penalty authority granted in the Pipeline Safety Improvement Act of 2002. It is evident
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May 20, 2010 - - House T&I, Subcommittee on Railroads, Pipelines and Hazmat
