DOT proposes $466,200 fine for Enterprise in Kansas pipeline failure

WASHINGTON - The U.S. Department of Transportation on Oct. 28 proposed to fine Enterprise Products Operating, LLC $466,200 for alleged violations of federal pipeline safety regulations. The proposed fine follows the
Department's investigation into the Enterprise Products Partners September
2007 failure near Englewood, Kansas.
"Today's action reinforces a message the Department has communicated for years to owners and operators of pipeline systems and other freight and commodity transporters - Safety First," said Transportation Secretary Ray LaHood.
The proposed fine and finding of probable violation are the result of an accident investigation recently completed by the Department's Pipeline and Hazardous Materials Safety Administration (PHMSA). During the investigation, PHMSA investigators discovered possible failures by Enterprise to ensure pipeline workers were adequately trained to perform necessary system repairs as required by federal operator qualification regulations. Proper implementation of operator qualification programs by pipeline companies is vital to preventing system failures, injury to people, property damage, and other serious consequences. Other probable violations include failures to conduct required drug testing of maintenance personnel following the accident.
On Sept. 11, 2007, PHMSA inspectors responded to an Enterprise Products pipeline rupture and release of approximately 14,700 barrels of natural gas liquid. Post-accident failure analysis determined the failure was due to the improper installation of pipeline system components following recently conducted maintenance activities.
Although the release did not result in any deaths or injuries to the public, the event closed State Highway 283 for five days, seriously affecting daily commuters as crews worked to secure and clean-up spilled product.

House T&I panel berates PHMSA for hazmat permitting record

WASHINGTON - The Transportation Department’s Pipeline and Hazardous Materials Safety Administration that oversees pipeline and other transport of hazardous materials has a lax permitting policy and maintains too cozy a relationship with the industry it regulates, according to the findings of congressional and Office of the Inspector General investigations that were released on Sept. 10 during a House oversight hearing.
PHMSA's oversight of hazardous materials transportation has raised safety concerns, Transportation and Infrastructure Chairman James Oberstar (D-Minn.) and DOT Inspector General Calvin Scovel III said at the hearing.
"This agency needs a house cleaning," Oberstar said. "Safety is not a one-time snapshot; it's continued vigilance... and this agency has lost its way and along the way has developed a very cozy relationship with the industry it regulates."
The five-year-old agency has been issuing permits without reviewing companies' prior incident and enforcement histories and has been generous in issuing and regulating special permits, which authorize activities not covered under hazardous materials regulations.
Among other accusations, Oberstar and Scovel said PHMSA in some cases does not know where the special permits are being used; grants them to trade organizations that can pass them along to members in a blanket fashion; and relies on self-certification by the special permit applicants.
Sixty-five percent of the nonemergency special permits studied in the investigation were either incomplete, lacking evidence showing the applicant's safety record or were nonexistent, according to the inspector general's report. And of the 16 companies that held the majority of the special permits studied, none fully complied with the terms and conditions of the permits.
"Regulating and monitoring the movement of hazardous materials is a critical part of ensuring the safety of the nation's transportation system, and it is PHMSA's role to properly assess all risks before allowing applicants to participate in commerce under special permits and approvals," Scovel said.