PHMSA has estimated there are roughly  2 million miles of distribution pipelines, most of which are intrastate  pipelines. 2). In response to GAO’s survey,  state pipeline safety agencies cited construction quality, maintenance  practices, unknown or uncertain locations, and limited or no information  on current pipeline integrity as safety risks for federally unregulated  gathering pipelines. According to responses to our survey and interviews with industry officials  and representatives, land-use changes and the increased extraction of oil  and natural gas from shale deposits are two changes in the operating  environments that could increase the safety risks for unregulated  gathering pipelines. 4.) Specifically,  some of these new gathering pipelines have larger diameters and  operate at higher pressures that are equivalent to traditional  transmission pipelines, but without the regulatory requirements. However, PHMSA’s plans for collecting  data are preliminary, and the extent to which PHMSA will collect data  sufficient to evaluate the potential safety risks associated with these  pipelines is uncertain. The  survey reported that neither states nor the District of Columbia collected  comprehensive data on federally unregulated gathering pipelines, as is  required for federally regulated pipelines. States Could Benefit from Sharing Safety Practices

State pipeline safety agencies reported using five safety practices most  frequently to help ensure the safety of onshore hazardous liquid and gas  gathering pipelines not regulated by PHMSA, according to our survey of  state agencies (see fig. Damage prevention programs. Considering areas of highest risk. Safety inspections. Public outreach and communication. However, sharing of information among states on the safety practices they  use for unregulated gathering pipelines appears to be limited. Some state  and PHMSA officials we interviewed had limited awareness of what other  states were doing to help ensure the safety of gathering pipelines not  regulated by PHMSA. However,  information targeted at gathering pipelines, including relevant safety  practices and state activities, is limited. Increased communication and information sharing about pipeline safety  practices could boost the use of those practices in states with unregulated  gathering pipelines. Conclusions

While the safety risks of federally unregulated, onshore hazardous liquid  and gas gathering pipelines are generally considered to be lower than  other types of pipelines, PHMSA is currently not able to determine the  performance and safety of these gathering pipelines because it does not  collect the necessary pipeline operator data. Establish an online clearinghouse or other resource for states to share  information on practices that can help ensure the safety of federally  unregulated onshore hazardous liquid and gas gathering pipelines. Agency Comments

We provided the Department of Transportation with a draft of this report  for review and comment. Appendix I: Objectives, Scope, and Methodology

The objectives of our review were to determine (1) the safety risks that  exist, if any, with onshore hazardous liquid and natural gas gathering  pipelines that are not currently under the Pipeline and Hazardous  Materials Safety Administration (PHMSA) regulation and (2) the practices  states are using to help ensure the safety of unregulated onshore  gathering pipelines. We also interviewed officials at PHMSA, state  pipeline safety agencies, pipeline companies and other industry  stakeholders, and related associations. To determine what safety risks may be associated with federally  unregulated gathering pipelines—in addition to reviewing federal agency  regulations, regulated pipeline safety data, and conducting various  interviews—and because of the lack of historical and nationwide data, we  developed and administered a web-based survey to state pipeline safety  agencies in all 50 states and the District of Columbia.
Why GAO Did This Study

Pipelines are a relatively safe mode of transportation for hazardous liquid and natural gas and are regulated by the Department of Transportations (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) and state entities. Included in the nations pipeline network are an estimated 200,000 or more miles of onshore gathering pipelines, which transport products to processing facilities and larger pipelines. Many of these pipelines have not been subject to federal regulation based on their generally rural location and low operating pressures. While incidents involving gathering pipelines regulated by PHMSA have resulted in millions of dollars in property damage in recent years, comparable statistics for federally unregulated gathering pipelines are unknown. This report identifies (1) the safety risks that exist, if any, with onshore hazardous liquid and natural gas gathering pipelines that are not currently under PHMSA regulation and (2) the practices states use to help ensure the safety of these pipelines. GAO surveyed state pipeline safety agencies in all 50 states and the District of Columbia; interviewed officials at PHMSA, state pipeline safety agencies, pipeline companies, and industry associations; and analyzed data and regulations.

What GAO Found

While the safety risks of onshore gathering pipelines that are not regulated by PHMSA are generally considered to be lower than for other types of pipelines, PHMSA does not collect comprehensive data to identify the safety risks of unregulated gathering pipelines. In response to a GAO survey, state pipeline safety agencies cited construction quality, maintenance practices, unknown or uncertain locations, and limited or no information on pipeline integrity as among the highest risks for federally unregulated pipelines. Without data on these risk factors, pipeline safety officials are unable to assess and manage safety risks associated with these pipelines. Furthermore, changes in pipeline operational environments cited in response to GAOs survey and by industry officials could also increase safety risks for federally unregulated gathering pipelines. Specifically, land-use changes are resulting in development encroaching on existing pipelines and the increased extraction of oil and natural gas from shale deposits is resulting in the development of new gathering pipelines, some of which are larger in diameter and operate at higher pressure than older pipelines. PHMSA is considering collecting data on federally unregulated gathering pipelines, but the agencys plans are preliminary, and the extent to which PHMSA will collect data sufficient to evaluate the potential safety risks associated with these pipelines is uncertain.
A small number of state pipeline safety agencies GAO surveyed reported using at least one of five practices that were most frequently cited to help ensure the safety of federally unregulated pipelines. These practices include (1) damage prevention programs, (2) considering areas of highest risk to target resources, (3) safety inspections, (4) public outreach and communication, and (5) increased regulatory attention on operators with prior spills or leaks. However, the sharing of information among states on the safety practices used appears to be limited. Some state and PHMSA officials GAO interviewed had limited awareness of safety practices used by other states. Increased communication and information sharing about pipeline safety practices could boost the use of such practices for unregulated pipelines. However, information targeted at gathering pipelines on PHMSAs website, including relevant safety practices and state activities, is limited.

What GAO Recommends

DOT should (1) collect data on federally unregulated hazardous liquid and gas gathering pipelines and (2) establish an online clearinghouse or other resource for sharing information on pipeline safety practices. DOT provided technical corrections on a draft of this report.