Government

While the impact of the BP oil spill on offshore oil and gas development is already obvious, its impact on pipeline safety is less so, despite what promise to be ramifications. That was clear from the hearings in the House Transportation and Infrastructure Committee on May 20 where both Democrats and Republicans peppered Cynthia Quarterman, the new administrator of the Pipeline and Hazardous Materials Safety Administration, with questions about the agency's existing plans for oil and gas accidents.

Despite the different and superior safety profile for offshore natural gas exploration, the BP deepwater oil spill may well dissuade Congress from approving the addition by the Obama administration of gas-rich areas to the Minerals Management Service (MMS) 2007-2012 leasing plan.

The Environmental Protection Agency (EPA) softened some of the prospective greenhouse gas (GHG) monitoring requirements for the natural gas transmission companies but the supplemental rule the agency published March 22 left the industry miffed nonetheless.

Congressional concern about "fracking" took another step forward when the chairman of the House Energy & Commerce Committee sent letters to eight companies asking for details on the chemicals they use during horizontal drilling of shale gas deposits.

The ExxonMobil purchase of XTO Energy has sparked new congressional interest in the environmental safety of horizontal shale gas drilling, a concern also lately exhibited by the EPA.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) published a final rule dictating the shape and content of new control room management programs for hazardous liquid, gas transmission and distribution pipelines.

FERC's gas infrastructure conference on Nov. 21 touched on LNG pricing and terminal construction, but never got into the political issues which are likely to bear on FERC’s approval of new LNG terminals.

Worries about potential escalating demand for natural gas from electric utilities and industrials forced to switch fuels because of climate change legislation from Congress was the major factor behind the FERC natural gas infrastructure workshop Nov. 21.

A Senate climate change bill passed in early November by the Environment and Public Works Committee will probably be pushed aside by a version more acceptable to Republicans and moderate Democrats.

Anyone looking for an acknowledgement in the new FERC strategic plan that the commission is focused on expanding pipeline infrastructure need not waste his time reading the 50-page document FERC Chairman Jon Wellinghoff issued in mid-October.

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