'What's Happening Out There?': Bob Latta Presses Expert On Why Pipeline Crimes Aren't Prosecuted

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During a House Energy Committee hearing before the Congressional Recess, Rep. Bob Latta (R-OH) asked President and Chief Executive Officer of the Liquid Energy Pipeline Association Andrew Black about prosecution for the damage of pipelines.

Transcript

00:00And at this time, I will recognize myself for five minutes to our questions to our witnesses.

00:06Ms. Miller, do you believe that FUNSA's primary mission as a regulator should be safety?

00:12I do.

00:13And would you explain why pipelines have a net positive effect on the environment?

00:20Well, as you've heard from other witnesses, and first I should say thank you, Chairman, for the question,

00:24but as you've heard from other witnesses as well, pipelines are the cleanest and safest way to move energy.

00:31The demand for affordable, reliable, and safe, sustainable energy sources is growing,

00:37and natural gas is abundant in the United States.

00:41So with appropriate regulatory policy, natural gas and the pipelines that the midstream operators design, install,

00:49and operate can be the way that safe, affordable, reliable energy is delivered to the communities that need it.

00:57I would note that the U.S. Energy Information Administration has reported that natural gas results in fewer emissions

01:06than using coal or petroleum products to deliver the same energy.

01:11Therefore, when you use natural gas through pipelines in place of coal or other petroleum products,

01:19you're actually enabling communities worldwide to have reliable, affordable energy sources

01:26to enable a higher quality standard of living safely.

01:32And our members, on top of all that, our members are prioritizing safety,

01:37and they're looking for ways to ensure that their pipelines do not have leaks.

01:43Lost emitted gas, lost gas, is actually lost profit, lost value for our members,

01:50so they are not only incentivized to ensure that natural gas pipelines are operated safely,

01:57but they also deliver an environmental benefit because it's the right thing to do,

02:01but also because they're financially incentivized to ensure that that product stays in the pipe.

02:05Well, thank you.

02:06Mr. Moriarty, 40% of electric generation in the United States comes from natural gas.

02:12Electricity demand in the United States is projected to increase more than 25% in the next five years,

02:17in part because of the rates for AI and the on-showing of manufacturing.

02:21That means we're going to need more natural gas, which will require significant infrastructure build-out,

02:26including the expansion of pipeline infrastructure.

02:29Could you elaborate on how pipeline constraints impact and ultimately jeopardize safety?

02:35Thank you, Mr. Chairman.

02:37States that allow prompt regulatory recovery of the costs for the replacement and relocation of pipelines

02:44will accelerate the upgrading of aging infrastructure.

02:48We have these regulatory mechanisms in Florida and in Maryland and Delaware.

02:53Also, excavation damage is the primary source of distribution pipeline incidents

02:58and hampers operations and efforts to upgrade aging infrastructure.

03:04States that have strong excavation damage prevention programs and enforcement

03:08typically experience lower rates of damage to distribution pipelines.

03:12Well, thank you.

03:13Mr. Black, the Pipes Act of 2020 recognized the value of using new technologies

03:19to bolster both efficiency and safety.

03:21However, DOE's implementation of the program had many non-statutory requirements

03:27that ultimately deterred participation.

03:30Would you elaborate on what some of those non-statutory hurdles were and are?

03:35Thank you for your leadership on this issue in the 2020 Pipes Act and in last Congress's bill,

03:40and we hope that we can continue to work on this issue.

03:43The technology demonstration pilot program gives us an opportunity to demonstrate

03:47how new technologies can improve pipeline safety.

03:51PHMSA went beyond the safeguards that Congress suggested

03:54and required technology pilot program applicants to use a special permit process

04:00and to put those before a NEPA review,

04:03none of which had ever been done for similar types of applications like that.

04:07So nobody used it.

04:08Just pardon for an interruption.

04:10Why would they do that?

04:11They've never done it before.

04:13It confounded us.

04:14I don't know.

04:15But, you know, there's another kind of a theme that went through.

04:21Why aren't we prosecuting these cases?

04:24Because everyone said we need higher penalties for, you know, attacks on pipelines.

04:29What's happening out there?

04:30Maybe I've got 36 seconds left, but are we not prosecuting?

04:35Or what's happening in these cases out there?

04:37Well, there are criminal penalties in federal pipeline safety law

04:40for damaging or destroying pipelines.

04:42But we have incidents that don't lead to immediate damage or discovery

04:46that fall under loopholes.

04:48So we think you need to address issues like valve turning

04:52that can cause pressure buildups or torching pipelines

04:56or shooting high-powered rifles through pipelines, all of which have happened.

04:59We'd like to work with you to close those loopholes

05:01and deter attacks against pipelines.

05:02Well, thank you very much.

05:03Thank you very much.

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