As shown in figure 2, under these  regulations, operators must identify and assess segments of their pipelines  that are located in “high consequence areas,” which are highly populated or  frequently used areas, such as parks, where pipeline leaks or ruptures  could have the greatest impact on public safety. Using the results of the assessments,  operators must repair or replace any defective sections of pipeline. Gas Integrity Management Benefits Public Safety, although Operators Have Some Implementation Concerns, and Performance Measures Could Be Improved

The gas integrity management program is designed to improve pipeline  safety by supplementing existing standard safety requirements with risk- based management principles, including performance measures to monitor  progress. For the first time, all operators are required to systematically  assess the condition of their pipelines in high consequence areas and make  identified repairs. As of December 31, 2005, operators report having  assessed about 33 percent of their pipelines in high consequence areas and  completed over 2,000 repairs. In addition, we estimate that up to 68 percent  of people living along natural gas transmission pipelines are located in  highly populated areas and are expected to receive additional protection as  operators continue to assess and repair their pipelines in these areas. Early Indicators Show That Integrity Management Is Beneficial, Despite Some Operators’ Concerns about Implementation

Although the integrity management program is still being implemented, a  number of representatives from pipeline industry organizations, state  pipeline agencies, safety advocate groups, and operators we contacted  agree that integrity management benefits public safety because it requires  all operators to systematically assess their pipelines to gain a  comprehensive knowledge about the risks to their pipeline systems. Overall, most state  pipeline agency officials told us that these tools are useful; although about  half of the state officials with whom we spoke have found it difficult to  schedule the required training courses, and the majority have some  concerns about the adequacy of their staffing. To address these concerns,  PHMSA has taken steps to make it easier for state inspectors to attend  training and supports a proposal from states to provide additional funding  that could be used for staffing needs. PHMSA and states have begun  inspections and expect to complete the first round of inspections no later  than 2009. PHMSA and state officials reported that the  initial results from these inspections show that operators are doing well in  implementing the assessment and repair requirements of the integrity  management program, but they need to improve documentation of their  program’s processes. First Round of Inspections Is Expected to Be Completed by 2009 and Initial Inspections Show Operators Are Making Good Progress in Conducting Assessments

PHMSA and state pipeline agencies plan to conduct more than 700 gas  integrity management inspections, with the majority expected to be  completed no later than 2009. As the program matures, PHMSA’s performance measures  should allow the agency to quantitatively demonstrate the program’s  impact on the safety of pipelines. Scope and Methodology

The Pipeline Safety Improvement Act of 2002 directed GAO to assess the  effects on public safety stemming from the gas transmission pipeline  integrity management program. Accordingly, the objectives of our report  were to examine (1) the effect on public safety of the gas transmission  pipeline integrity management program and (2) the plans of the Pipeline  and Hazardous Materials Safety Administration (PHMSA) and state  pipeline safety agencies to oversee gas transmission pipeline operators’  implementation of integrity management requirements.
Why GAO Did This Study

The Pipeline Safety Improvement Act of 2002 established a risk-based program for gas transmission pipelines--the integrity management program. The program requires operators of natural and other gas transmission pipelines to identify "high consequence areas" where pipeline incidents would most severely affect public safety, such as those occurring in highly populated or frequented areas. Operators must assess pipelines in these areas for safety risks and repair or replace any defective segments. Operators must also submit data on performance measures to the Pipeline and Hazardous Materials Safety Administration (PHMSA). The 2002 act also directed GAO to assess this program's effects on public safety. Accordingly, we examined (1) the effect on public safety of the integrity management program and (2) PHMSA and state pipeline agencies' plans to oversee operators' implementation of program requirements. To fulfill these objectives, GAO interviewed 51 gas pipeline operators and surveyed all state pipeline agencies.

What GAO Found

The gas integrity management program is designed to benefit public safety by supplementing existing safety requirements with risk-based management principles that focus on safety risks in high consequence areas, such as highly populated or frequented areas. Early indications show that the condition of transmission pipelines is improving as operators complete assessments and related repairs of their pipelines. For example, as of December 31, 2005, operators had assessed 33 percent of pipelines in high consequence areas and completed over 2,000 repairs. Furthermore, up to 68 percent of the population living near gas transmission pipelines is expected to benefit from improved pipeline safety because they live in highly populated areas. Representatives from the pipeline industry, safety advocacy groups, and state pipeline safety agencies generally agree that integrity management improves public safety, but operators noted that the program can be costly to implement and cited concerns with implementing the program, such as meeting the documentation requirements. PHMSA's performance measures should demonstrate the impact of the program over time. However, we are recommending revisions to improve the measures. For example, adjusting the incident reporting requirement to account for changes in the price of natural gas would allow PHMSA to more accurately track trends in pipeline incidents. PHMSA and states plan to use a variety of inspection tools to oversee operators' implementation of integrity management requirements and expect to complete the first round of inspections no later than 2009. To assist in conducting these inspections, PHMSA has developed a range of tools, including guidance documents and training courses for inspectors. Overall, state agencies have found these tools to be useful, although some states have found it difficult to schedule the required training courses and have some concerns about the adequacy of their staffing. To address these concerns, PHMSA is taking steps to make it easier for state inspectors to attend the training and supports providing additional funding to states. Initial results from 20 federal inspections and 117 state inspections show that operators are making good progress in assessing pipelines and making repairs, but they generally need to better document their decisions and processes.