Following the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Notice of Proposed Rulemaking on natural gas transmission and gathering lines, the American Petroleum Institute (API) recently declared the proposed new rules unnecessary and more costly than PHMSA estimates.
“Our industry continues to lead on creating new standards to enhance pipeline safety,” API Midstream Director Robin Rorick said. “Operators spend billions each year and countless man hours to evaluate, inspect and maintain pipelines. We have a better path forward that is safer for the public and the environment. We support regulations that efficiently and, most importantly, effectively further pipeline safety, but these additional proposals are not based on sound calculations.”
PHMSA said the new rules would carry implementation costs of $597 million, a figure disputed by the API through a study -- prepared by ICF International -- that suggests costs of $33.4 billion. API also disputes the purported benefits of the rule.
“PHMSA’s flawed study grossly underestimates the cost of implementing these regulations, which will provide little improvement in safety outcomes,” Rorick said. “We encourage PHMSA to reassess this proposal, conduct the appropriate data collections and studies that apply sound science, and then re-issue proposals that successfully benefit the environment and the public.”
Alerts Sign-up