The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has taken aggressive action this week against two pipeline operators.
First, PHMSA has proposed a $425,000 fine against Kinder Morgan Products Pipelines for alleged pipeline safety violations following a PHMSA investigation into Kinder Morgan’s October 2009 accident in Perth Amboy, N.J. “We will hold pipeline operators accountable when they put the public or the environment at risk,” said U.S. Transportation Secretary Ray LaHood.
In a separate issue, the Obama Administration first refused to allow Keystone pipeline to re-start issuing a Hazardous Facilities Order against the company late this week. Then following some last minute wrangling, the government said that TransCanada Corp can restart its Keystone oil pipeline on Sunday, after the company satisfied a series of safety conditions following leaks that idled the key export line twice in less than a month.
“Companies are no longer getting a pass when it comes to pipeline safety regulations” said former PHMSA Chief Brigham McCown, now in private practice. He suggested that as the Obama Administration gets more comfortable in regulating the industry, they will be less likely to work through issues quietly. “The hammer is out for now and the focus has clearly shifted toward enforcement” McCown said.