Risk Management Systems Key To Protecting Pipelines
Safety and compliance will continue to be top of mind for U.S. oil and gas producers in 2021 as scrutiny from government regulators and environmental protection organizations intensifies. The industry faces new rules and ongoing challenges, including the need to protect workers and their communities during a pandemic, the rollout of the first installment of the new “Mega Rule” pipeline safety regulations, and a significant increase in overall regulatory oversight due to the ability to readily conduct virtual audits.
The Pipeline and Hazardous Materials Safety Administration (PHMSA) enacted the Mega Rule to increase the level of safety associated with more than 300,000 miles of U.S. onshore gas transmission lines. Acknowledging that the COVID-19 crisis has strained resources and personnel, the PHMSA granted a stay of enforcement to some Mega Rule provisions that took effect last July. That grace period ended Jan. 1, signaling federal regulators to resume routine enforcement and sanctions.
It is critical for pipeline operators to understand the new rules and the importance of protecting workers, worksites and businesses, including the third-party contractors they rely on. Human well-being is at stake, and penalties and fines for falling short of federal regulations can be staggering. According to PHMSA, in 2020 alone, $2.68 million in penalties were levied–some $218,000 per violation tied to Title 190 Pipeline Safety. Those are financial hits that organizations already under financial strain cannot afford to take.
