CONTENTS Opening statement of the chairman__. CHRONOLOGICAL LIST OF WITNESSES Jennings, William C., Acting Director, Office of Pipeline Safety, Office of ADDITIONAL INFORMATION Department of Transportation, Office of the Secretary: Attachment No. 1. Attachment No. 2. Attachment No. 3. Attachment No. 4. Attachment No. 5. Attachment No. 6. Attachment No. 7. Attachment No. 8.. Jennings, William C., Acting Director, Office of Pipeline Safety, Office of the Secretary of Transportation, letter of July 23, 1969.. (III) Page 1 2 33 35 38 42 45 46 52 55 15, 26 GAS PIPELINE SAFETY OVERSIGHT WEDNESDAY, JULY 9, 1969 U.S. SENATE, COMMITTEE ON COMMERCE, SUBCOMMITTEE ON SURFACE TRANSPORTATION, Washington, D.C. The subcommittee met at 10:30 a.m. in room 5110, New Senate Office Building, the Honorable R. Vance Hartke, presiding. Present: Senators Hartke and Pearson. OPENING STATEMENT OF THE CHAIRMAN Senator HARTKE. Good morning, everyone. Approximately 11 months have now passed since the enactment of the Natural Gas Pipeline Safety Act of 1968. There is a general tendency for the public, for the press, and often for legislators to equate the passage of an act with the solution of the particular problem addressed by that act. The primary reason for having this hearing today is to determine to what extent the problem of gas pipeline safety has been alleviated by the act passed last year. This subcommittee is anxious to learn what progress has been made. In its consideration of the legislation during the last Congress this committee was deeply concerned about persons being killed or injured or threatened with severe hazards for lack of an effective gas pipeline safety program. There was a great sense of urgency attached to the passage of this act and this subcommittee is eager to insure that the same sense of urgency will obtain in the implementation of the act by the present administration. RECENT EVENTS REQUIRE COMMENT The Wall Street Journal, in a series of three articles beginning on Tuesday, July 8, yesterday, has revealed charges of corruption in the gas pipeline industry. There are indications coercion may have taken the form of sabotaging pipelines. I am also very concerned about the potential impact that increased costs as a result of corruption may have on safety. Bribery and corruption are intolerable in any event but where the lives of innocent people are at stake it is absolutely essential that the practices be stopped without delay. I hereby request that the Department of Transportation immediately undertake to determine what impact these alleged practices are having upon the safety of our citizens. The Department should utilize all its powers to terminate this kind of danger. Staff member assigned to this hearing: A. Daniel O'Neal. We will proceed this morning with the witness, Mr. William C. Jennings, Acting Director of the Office of Pipeline Safety. Good morning, Will. STATEMENT OF WILLIAM C. JENNINGS, ACTING DIRECTOR, OFFICE OF PIPELINE SAFETY, OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION; ACCOMPANIED BY JOSEPH C. CALDWELL, DEPUTY DIRECTOR, OFFICE OF PIPELINE SAFETY, AND FRED J. EMERY, LEGAL ADVISER, OFFICE OF GENERAL COUNSEL Mr. JENNINGS. Good morning. Senator HARTKE. You may proceed. Mr. JENNINGS. With me are Joseph C. Caldwell, Deputy Director of the Office of Pipeline Safety, and Fred J. Emery, our legal adviser from the Office of General Counsel. We appreciate the opportunity to report on our administration of the Natural Gas Pipeline Safety Act of 1968, since its approval on August 12, 1968. The act gave the Secretary of Transportation the authority to regulate the "gathering, transmission, or distribution of gas by pipeline or its storage in or affecting interstate or foreign commerce" except for gathering lines in rural areas as determined by the Secretary. Section 3(a) of the act required that the Secretary, not later than 3 months after its effective date, which was August 12, 1968, "adopt as interim minimum Federal safety standards for pipeline facilities and the transportation of gas in each State the State standards regulating pipeline facilities and the transportation of gas within such State on the date of enactment" of the act. Section 3 (b) of the act requires the Secretary to establish not later than August 12, 1970, permanent minimum Federal safety standards for the transportation of gas and pipeline facilities. Section 5 of the act provides two means whereby the States can take over the administration of the safety program for pipelines, other than those interstate lines subject to the jurisdiction of the Federal Power Commission. Under section 5(a), the performance of these functions with respect to intrastate pipelines and facilities is transferred to any State which certifies that it "(1) has regulatory jurisdiction over the safety standards and practices of such pipeline facilities and transportation of gas; (2) has adopted each Federal safety standard applicable to such pipeline facilities and transportation of gas established under this act as of the date of the certification; (3) is enforcing each such standard; and (4) has the authority to require record maintenance, reporting, and inspection substantially the same as are provided under section 12 and the filing for approval of plans of inspection and maintenance described in section 11." In addition, after August 12, 1970, a State will be required to certify that the State law "makes provision for the enforcement of the safety standards of such State agency by way of injunctive and monetary sanctions substantially the same as are provided * * *" under the act. Section 5(b) permits a State to enter into agreements with the Secretary for State enforcement of the Federal standards in those areas where the State is not able to certify under section 5 (a). |