Regular Session 2017-2018 Senate Bill 0488 P.N. 0488

PRINTER'S NO. 488

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

488

Session of

2017

INTRODUCED BY BAKER, YUDICHAK, RAFFERTY, MENSCH, SCHWANK,

BREWSTER AND BLAKE, MARCH 6, 2017

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,

MARCH 6, 2017

AN ACT

Providing for rural natural gas and hazardous liquids pipelines

and for powers and duties of the Pennsylvania Public Utility

Commission; and imposing civil penalties and assessments.

TABLE OF CONTENTS

Chapter 1. Preliminary Provisions

Section 101. Short title.

Section 102. Definitions.

Section 103. Applicability.

Chapter 3. Rural Pipeline Operators

Section 301. Registry of rural pipeline operators.

Chapter 5. Commission Authority and Enforcement

Section 501. General powers of commission.

Section 502. Civil penalties.

Section 503. Assessments.

Section 504. Jurisdiction and authority of commission.

Chapter 11. Miscellaneous Provisions

Section 1101. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101. Short title.

This act shall be known and may be cited as the Rural

Pennsylvania Pipeline Safety Act.

Section 102. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commission." The Pennsylvania Public Utility Commission.

"Federal pipeline safety laws." The provisions of 49 U.S.C.

Ch. 601 (relating to safety), the Hazardous Liquid Pipeline

Safety Act of 1979 (Public Law 96-129, 93 Stat. 989), the

Pipeline Safety Improvement Act of 2002 (Public Law 107-355, 116

Stat. 2985) and the regulations promulgated under the acts.

"Gathering or gathering pipeline." A pipeline or pipeline

facility used to transport natural gas or hazardous liquids

between a production pipeline and a regulated pipeline.

"Natural gas or hazardous liquids." Natural gas, petroleum,

a petroleum product or other hydrocarbon produced from an

unconventional formation.

"Person." An individual, firm, joint venture, partnership,

corporation, association, municipality, cooperative association

or joint stock association, including any trustee, receiver,

assignee or personal representative thereof. The term does not

include a public utility.

"Pipeline." All or any part of the physical facilities

through which natural gas or hazardous liquids move in

transportation, including a pipe, valve and other appurtenance

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attached to the pipe, compressor unit, metering station,

regulator station, delivery station, holder and fabricated

assembly. The term only includes a pipeline or portion thereof

which is not subject to specific regulation under the Federal

pipeline safety laws. The term does not include a pipeline

subject to the exclusive jurisdiction of the Federal Energy

Regulatory Commission.

"Pipeline facility." A new or existing pipeline, right-of-

way and any equipment, facility or building used in the

transportation of natural gas or hazardous liquids or in the

processing or treatment of natural gas or hazardous liquids

during the course of transportation of such natural gas or

hazardous liquids. The term does not include a pipeline facility

subject to the exclusive jurisdiction of the Federal Energy

Regulatory Commission.

"Production or production pipeline." A pipeline or pipeline

facility used to transport natural gas or hazardous liquids

between an unconventional well and a gathering pipeline,

provided that the end of production and the start of gathering

begins at the edge of the well pad or the first meter from the

well, whichever is nearer to the well.

"Public utility." The term shall mean:

(1) A public utility as defined in 66 Pa.C.S. § 102

(relating to definitions).

(2) A city natural gas distribution operation as defined

in 66 Pa.C.S. § 102.

"Regulated pipeline." A pipeline or pipeline facility that

is:

(1) subject to the exclusive jurisdiction of the Federal

Energy Regulatory Commission;

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(2) used to provide public utility service and regulated

by the commission; or

(3) regulated by the commission under the act of

December 22, 2011 (P.L.586, No.127), known as the Gas and

Hazardous Liquids Pipelines Act.

"Rural pipeline operator." A person that owns or operates

one or more gathering pipelines or pipeline facilities in this

Commonwealth.

"Unconventional formation." A geological shale formation

existing below the base of the Elk Sandstone or its geologic

equivalent stratigraphic interval where natural gas or hazardous

liquids generally cannot be produced at economic flow rates or

in economic volumes except by vertical or horizontal well bores

stimulated by hydraulic fracture treatments or by using

multilateral well bores or other techniques to expose more of

the formation of the well bore.

"Unconventional well." A borehole drilled or being drilled

for the purpose of or to be used for the production of natural

gas or hazardous liquids from an unconventional formation.

Section 103. Applicability.

The provisions of this act shall apply only to pipelines and

pipeline facilities that are not specifically regulated under

Federal pipeline safety laws.

CHAPTER 3

RURAL PIPELINE OPERATORS

Section 301. Registry of rural pipeline operators.

(a) Registry.--The commission shall establish and maintain a

registry of all rural pipeline operators.

(b) Application.--The commission may develop an application

for registration under subsection (a) and may charge a

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reasonable registration fee and annual renewal fee.

(1) A rural pipeline operator shall register with the

commission.

(2) Failure to register shall subject the rural pipeline

operator to a civil penalty under section 502.

(d) Use of existing registries.--The commission may combine

the registry required under this act with any other registry

maintained by the commission.

(e) Disclosure.--The commission shall require each rural

pipeline operator to disclose in its initial registration and in

each annual renewal the country of manufacture for all tubular

steel products used in the exploration, gathering or

transportation of natural gas or hazardous liquids. The

commission may develop a disclosure form and require its use.

CHAPTER 5

COMMISSION AUTHORITY AND ENFORCEMENT

Section 501. General powers of commission.

(a) Commission authority.--The commission shall have general

administrative authority to supervise and regulate rural

pipeline operators in this Commonwealth consistent with this

act. The commission shall adopt regulations as may be necessary

or proper, which shall include, but not be limited to, the

following:

(1) pipeline markers and the marking of pipelines and

pipeline facilities;

(2) the reporting of incidents with regard to pipelines

and pipeline facilities;

(3) minimum construction and maintenance standards,

including, but not limited to, corrosion control and the

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establishment of maximum allowable operating pressures;

(4) recordkeeping, GPS locating and GIS mapping by rural

pipeline operators;

(5) leakage surveys and damage prevention programs;

(6) public education programs and advance notice to the

commission of new pipeline construction; and

(7) requirements for membership in damage prevention

organizations such as the Pennsylvania One Call System.

(b) Other regulations.--To promote safety and create

consistency between the construction, operation and maintenance

of rural pipelines and regulated pipelines, the commission may

adopt or modify regulations established under the Federal

pipeline safety laws in promulgating regulations under this act.

following duties:

(1) To investigate a service, act, practice, policy or

omission by a rural pipeline operator to determine compliance

with this act or regulations issued by the commission.

(2) To investigate a pipeline facility to determine if

it is hazardous to life or property.

(3) To investigate the existence or report of a safety-

related condition that involves a pipeline transportation

facility.

(4) Accept grants-in-aid, cash and reimbursements made

available to the Commonwealth by the Federal Government.

(5) To advise, consult and cooperate with the Federal

Government, other states and other agencies as may be

necessary to carry out the purposes of this act.

(d) Compliance.--Each rural pipeline operator, its officers,

agents and employees, and other persons subject to this act, or

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to an order or regulation of the commission, or a court under

this act, shall observe, obey and comply with this act and the

terms and conditions of the orders and regulations issued under

this act.

Section 502. Civil penalties.

(a) Violations.--Any rural pipeline operator who violates

this act shall be subject to a penalty provided under 66 Pa.C.S.

§ 3301(c) (relating to civil penalties for violations).

(b) Disposition of fines and penalties.--Fines imposed and

civil penalties recovered under this act shall be paid to the

commission. The funds received by the commission under this

subsection shall be paid into the State Treasury, through the

Department of Revenue, to the credit of the General Fund.

Section 503. Assessments.

(a) Duty to determine.--The commission shall, by regulation

or order, determine the assessments of pipeline operators in

accordance with this section.

(b) Assessments.--

(1) The commission shall determine an appropriate annual

assessment based on the commission's costs incurred under

this act and allocated to rural pipeline operators pro rata

by miles of gathering pipeline. The assessment shall be

adjusted to collect the commission's total costs of the

pipeline operators' portion, excluding the costs otherwise

reimbursed by the Federal Government, if any.

(2) The commission may combine for billing purposes the

assessment under this act with the assessment under the act

of December 22, 2011 (P.L.586, No.127), known as the Gas and

Hazardous Liquids Pipelines Act, for persons subject to both

acts.

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payable within 30 days from the notice of amount due from the

commission. The amount of the assessment may be challenged by a

pipeline operator consistent with the provisions of 66 Pa.C.S. §

510(c), (d) and (e) (relating to assessment for regulatory

expenses upon public utilities).

(d) Reporting of miles.--Following the submission of the

original application, each rural pipeline operator shall, on or

before March 31 of each calendar year, report to the commission

its total gathering pipeline miles in operation in this

Commonwealth during the prior calendar year.

(e) Estimated fees.--The estimated fees to be collected

under this section for each fiscal year shall be subtracted from

the final estimate of total expenditures used to calculate the

total assessment on public utilities under 66 Pa.C.S. § 510.

Section 504. Jurisdiction and authority of commission.

(a) Jurisdiction.--Nothing in this act shall give the

commission jurisdiction over a pipeline operator for purposes of

rates or ratemaking or a purpose other than those set forth in

this act.

(b) Authority.--Nothing in this act grants the commission

additional authority to determine or regulate a pipeline

operator as a public utility or as a natural gas supplier or

natural gas supply service.

CHAPTER 11

MISCELLANEOUS PROVISIONS

Section 1101. Effective date.

This act shall take effect in 180 days.

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