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C Overview of the Transmission Pipeline Industry and Its Regulation
Pages 88-103

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From page 88...
... Thus its commercial use did not develop as rapidly as did that of refined petroleum. Major expansion of the natural gas transmission pipeline system began after World War II when large crude oil trunk lines were converted for natural gas (Congressional Research Service 1986)
From page 89...
... The reader is referred to Chapter 2 for an overview of approaches that state and local governments have taken to address land use near pipelines. ECONOMIC STRUCTURE AND REGULATION Hazardous Liquids Pipeline Industry Structure of the Industry The structure of the pipeline industry is diverse and reflects the various needs for transporting natural gas and liquids.
From page 90...
... Hazardous liquids transmission pipelines span approximately 200,000 miles and range from a few inches up to 48 inches in diameter. Interstate oil pipeline systems, operated by 220 companies, account for about 80 percent of total liquids pipeline mileage and volume transported (Trench 2001)
From page 91...
... oil pipeline mileage and volumes transported. Intrastate movements may be regulated by the respective states (often by a public utility commission, but sometimes with a different name, such as the Railroad Commission in Texas and the Regulatory Commission of Alaska)
From page 92...
... In today's competitive transportation market, shippers (even in integrated energy companies) apply considerable pressure on the pipeline companies to keep their tariffs low.
From page 93...
... These pipelines are designed to operate at high pressures that generally range from 500 to 1,000 pounds per square inch. Natural gas transmission pipelines are primarily interstate, larger-diameter pipes constructed of carbon steel, engineered and constructed to meet standards established by the American Petroleum Institute and adopted by the U.S.
From page 94...
... When a pipeline containing such liquid ruptures, the hazardous liquid often flows along the ground and can enter streams and rivers, contaminating public water supplies and killing fish and other wildlife. A more complete description of the natural gas pipeline industry is given by Kennedy (1993)
From page 95...
... These measures, among others, fostered competition in the natural gas commodity market, paved the way for the gradual introduction of com petition into the retail purchase of natural gas, and permitted the creation of new transportation and marketing services that have improved the effi ciency of the overall natural gas transportation process. Consequently, the 2"Take-or-pay provisions require the pipeline companies to pay for specified gas quantities (typ ically a percentage of well deliverability)
From page 96...
... regulate interstate natural gas and liquids pipelines; state agencies may assume responsibility for enforcing intrastate pipeline regulations and may inspect interstate pipelines, legislate damage prevention laws,
From page 97...
... . Office of Pipeline Safety The distribution of pipeline regulatory responsibility has evolved since the enactment of the Natural Gas Pipeline Safety Act of 1968, which was the first legislation to require OPS to establish minimum federal safety standards for interstate natural gas transmission and distribution pipelines.
From page 98...
... In addition to regulating pipeline safety, OPS is tasked to ensure that people and the environment are protected from the risk of pipeline incidents. Thus, OPS's responsibilities include improving and expanding regulations, assessing risks, mandating the repair of defects in a timely manner, communicating information, developing performance measures, providing assistance to local communities, supporting state partners, and promoting damage prevention and the advancement of technology.
From page 99...
... For hazardous liquids pipelines, a high-consequence area is defined as a populated area, an area unusually sensitive to environmental damage, or a commercially navigable waterway. The final rule for integrity management of natural gas transmission pipelines in high-consequence areas [published on December 15, 2003 (68 Federal Register 69778)
From page 100...
... It is also responsible for addressing issues concerning environmental impacts of interstate natural gas pipelines, which often affect siting and routing, financing, and tariffs. For natural gas transmission lines, FERC's Office of Energy Projects addresses landowner and environmental concerns by encouraging collaboration among parties, addressing stakeholder concerns before the certification process, incorporating environmental conditions into certificates, and ensuring compliance with conditions.
From page 101...
... Comments received are addressed in the final EIS or the final order granting or denying the pipeline a certificate. In the case of liquids pipelines, if there is a need for any major federal permits, the issuing agency would serve a role similar to that of FERC for natural gas projects.
From page 102...
... NTSB identifies major safety issues that are provided to the Research and Special Programs Administration's OPS as action items, but NTSB does not regulate equipment, personnel, or operations, and it does not initiate enforcement action. REFERENCES Abbreviations EIA Energy Information Administration FERC Federal Energy Regulatory Commission GAO General Accounting Office TRB Transportation Research Board C-FER Technologies.
From page 103...
... 2002. Interagency Agreement on Early Coordination of Required Environmental and Historic Preservation Reviews Conducted in Conjunction with the Issuance of Authorizations to Construct and Operate Interstate Natural Gas Pipelines Certificated by the Federal Energy Regulatory Commission.


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