1.) Gas gathering pipelines collect natural gas from  production areas, while hazardous liquid gathering pipelines collect oil  and other petroleum products. PHMSA regulates gathering pipelines in nonrural  areas, resulting in regulation of approximately 10 percent of gathering  pipelines. Gathering Pipelines Pose Safety Risks That PHMSA Is Working to Address

In our 2012 and 2014 reports, we identified safety risks associated with  gas and hazardous liquid gathering pipelines that PHMSA was planning  to but had not yet addressed through regulatory proposals. In 2012, we  found that PHMSA does not collect comprehensive data on safety risks  associated with gathering pipelines. In our 2012 report, we found that the data PHMSA collects for regulated  pipelines help federal and state safety officials and pipeline operators  increase the safety of these pipelines by better identifying and quantifying  safety risks, as well as by implementing mitigation strategies, and  addressing potential regulatory needs. Such pipelines, if located in rural areas, are generally  not subject to DOT safety regulations that apply to other pipelines. Historically, gathering pipelines were smaller  and operated at lower pressure and thus posed less risk than long- distance pipelines. The recent increase in their size and pressure raises safety  concerns because they could affect a greater area in the event of an  incident. PHMSA issued Advance Notices of Proposed Rulemaking for  onshore hazardous liquid and gas pipelines in October 2010 and August  2011, respectively, seeking comment on whether to require operators to  report on federally unregulated gathering pipelines, as well as on whether  to establish a new, risk-based regime of safety requirements for large- diameter, high-pressure gas gathering pipelines, including those pipelines  in rural locations. In our 2014 report, we  recommended that PHMSA move forward with a Notice of Proposed  Rulemaking to address gathering pipeline safety that addresses the risks  of larger-diameter, higher-pressure federally unregulated gathering  pipelines, including subjecting such pipelines to emergency response  planning requirements that currently do not apply. DOT generally  concurred with the recommendation. Better Guidance on Use of Automated Valves and a Performance-Based Approach to Incident Response Could Improve Operators’ Response Times

In our January 2013 report on pipeline operator incident response, we  found that numerous variables influence the ability of transmission  pipeline operators to respond to incidents. In our January 2013 report, we concluded that PHMSA has an  opportunity to improve incident response times by developing a  performance-based approach for pipeline operators to improve incident  response times. For  example, PHMSA could evaluate nationwide data to determine response  times for different types of pipeline (based on location, operating  pressure, and pipeline diameter, among other factors). Reliable data would improve PHMSA’s ability to measure incident  response and assist the agency in exploring the feasibility of developing a  performance-based approach for improving operator response to pipeline  incidents. PHMSA officials also said they plan to develop a more specific  performance-based standard for incident response as part of the  upcoming February 2016 rulemaking. Guidance and More Information Needed for Use of Risk-Based Reassessment Intervals

The current statutory requirement for natural gas transmission pipeline  operators to reassess pipeline integrity at least every 7 years provides a  safeguard by allowing operators and regulators to identify and address  problems on a continual basis, but in our June 2013 report, we found that  this requirement is not fully consistent with risk-management practices,  which are the basis for PHMSA’s integrity management program. To better  identify the resource requirements needed to implement risk-based  reassessment intervals that are longer than 7 years for gas transmission  pipelines, we recommended that PHMSA collect information on the  feasibility of addressing the potential challenges of implementing risk- based reassessment intervals that are longer than 7 years, for example  by preparing a report or developing a legislative proposal for a pilot  program, in consultation with Congress, that studies the impact to  regulators and operators of a potential rule change.
Why GAO Did This Study

The nation relies on a pipeline network of more than 2.6 million miles to transport hazardous liquids and natural gas. This network includes gathering pipelines that transport products to processing facilities and transmission pipelines that transport products from processing facilities to users (see figure). Pipeline safety oversight from PHMSA, along with state partners, covers issues such as incident response planning and integrity management. PHMSA uses a risk-based approach to regulate pipelines, resulting in regulation of all transmission pipelines and about 10 percent of gathering pipelines. Specifically, PHMSA does not regulate gathering pipelines that are smaller, operate at lower pressure, and are located in rural areas.
This statement addresses PHMSA's efforts in the areas of (1) gathering pipeline safety, (2) pipeline operator incident response, and (3) assessment of natural gas pipeline integrity. It is based on GAO's March 2012, January 2013, June 2013, and August 2014 reports on pipeline safety and July 2015 updates from PHMSA on its actions to respond to the reports' recommendations.

What GAO Found

The Department of Transportation's (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) has begun but not completed efforts to improve pipeline safety in response to GAO's prior recommendations:
Gathering pipelines : In 2012, GAO found that while gathering pipelines that are not regulated by PHMSA were generally considered to present less safety risk than other pipelines, PHMSA did not collect comprehensive data to identify such risks. GAO concluded that such data could help pipeline safety officials and pipeline operators increase the safety of these pipelines by better identifying and quantifying safety risks. In 2014, GAO found that construction of larger, higher-pressure gathering pipelines had increased due to the increased production of oil and gas, raising safety concerns because an incident could affect a greater area than an incident from a smaller, lower-pressure pipeline. PHMSA plans to issue proposed rules in fall 2015 that include collecting data on unregulated gathering pipelines.
Pipeline operator incident response : In January 2013, GAO found that PHMSA's data on operators' incident response times were not reliable, limiting the agency's ability to move to a performance-based approach for incident response. Improved data would allow PHMSA to determine appropriate response times for different types of pipelines, based on location and other factors. PHMSA plans to require changes in operator reporting to improve its incident response data and develop a performance-based standard as part of an upcoming rulemaking.
Gas pipeline assessment : In June 2013, GAO found that a requirement for gas transmission pipeline operators to reassess the integrity of their pipelines every 7 years provided a safeguard that issues were regularly addressed, but was not fully consistent with risk-based practices. A risk-based approach based on individual pipeline characteristics could call for assessments to occur more or less frequently than 7 years. However, implementing intervals longer than 7 years could require additional inspection resources to verify that operators appropriately assessed risk. GAO also found that guidance for calculating assessment intervals was lacking. PHMSA plans to issue guidance in 2016 and is researching the feasibility of risk-based assessments occurring less frequently than every 7 years.

What GAO Recommends

In its reports, GAO made seven recommendations to DOT to improve pipeline safety data and guidance and to move forward with proposed rulemaking to address safety risks. GAO recommended, for example, that DOT move forward with proposed rulemaking to address risks from newer gathering pipelines. DOT is taking actions to respond to the recommendations.