The Pipeline and Hazardous Materials Safety Administration (“PHMSA” or the “Agency”) published a Notice of Proposed Rulemaking (“NPRM” or the “Proposed Rule”) that provides increased flexibility to gas transmission pipelines that experience a certain change in population surrounding the pipeline (from a Class 1 to Class 3 location). These changes have been the subject of numerous Special Permit approvals for some time, and the industry has long requested that PHMSA codify this process to avoid unnecessary pipe replacements of short segments. If finalized, the Proposed Rule would provide operators an alternative option to implement integrity management (“IM”) requirements to ensure that a pipe segment is subject to appropriate class location safety factors and thereby avoid unnecessary and costly pipe replacements or pressure reductions. Comments are due by December 14, 2020.
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Rulemaking
Executive Order Promotes Enforcement Discretion and Deregulation
In an effort to relieve the economic impact associated with the response to COVID-19, President Trump recently signed an Executive Order (EO) designed to promote economic recovery by reducing regulatory burdens for businesses. Under the EO, all federal agencies are directed to (1) review regulations and rescind, modify, waive, or provide exemptions to those regulations that may impair economic growth and (2) consider whether any of the temporary modifications or waivers should be permanently adopted through formal rulemaking. While the EO is intended to provide relief during the COVID-19 pandemic, it is unclear whether it will have a tangible impact on enforcement of the federal pipeline safety or environmental laws for the oil and gas pipeline industry.
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