Regulatory Process for Pipelines is "Dying" According to Top Official
Jeffrey Wiese, the nation's top oil and gas pipeline safety official, recently strode to a dais beneath crystal chandeliers at a New Orleans hotel to let his audience in on an open secret: the regulatory process he oversees is "kind of dying."
Wiese told several hundred oil and gas pipeline compliance officers that his agency, thePipeline and Hazardous Materials Administration (PHMSA), has "very few tools to work with" in enforcing safety rules even after Congress in 2011 allowed it to impose higher fines on companies that cause major accidents.
"Do I think I can hurt a major international corporation with a $2 million civil penalty? No," he said.
Because generating a new pipeline rule can take as long as three years, Wiese said PHMSA is creating a YouTube channel to persuade the industry to voluntarily improve its safety operations. "We'll be trying to socialize these concepts long before we get to regulations."
Wiese's pessimism about the viability of the pipeline regulatory system is at odds with the Obama administration's insistence that the nation's pipeline infrastructure is safe and its regulatory regime robust. In a speech last year, President Obama ordered regulatory agencies like PHMSA to help expedite the building of new pipelines "in a way that protects the health and safety of the American people."