Gas Pipeline Safety Program Information

The U.S. has a national pipeline network of about three million miles of mainline and other pipeline infrastructure which links natural gas production areas and storage facilities with consumers. Interstate natural gas pipelines operate and transport natural gas across state borders. Intrastate natural gas pipelines operate and transport natural gas within a state border. When natural gas arrives at the locations where it will be used (usually through large pipelines), it flows into smaller diameter pipelines called mains and then into smaller service lines that go directly to homes or buildings.

Colorado holds three percent of the nation’s transmission miles, four percent of the nation’s gathering miles, and 30 percent of the nation’s distribution miles. 

What authority does the PUC have to fine natural gas operators? 
 

PUC has authority to issue civil penalties based on Section  40-7-117, C.R.S.. Fines are capped at $200,000 per violation and the aggregate amount of penalties shall not exceed $2 million. Additionally, a minimum penalty of $5,000 was set by recent state legislation.

The PUC has two primary responsibilities with pipeline safety.

It’s the official State Delegate for PHMSA, which manages the Pipeline Safety Program. Duties consist of operator inspections, compliance and enforcement, safety programs, accident investigations, design, testing, and construction (DTC) inspections, and record maintenance and reporting. The PUC also receives and investigates complaints and issues notice of hearings for all alleged violations, petitions, hearings, investigations, and proceedings.  This authority is exercised through the Pipeline Safety Program section of the PUC.

The PUC also reviews, approves and facilitates investments in pipeline safety on the part of pipeline operators. In the last 10 years utility companies have made significant safety investments, which the PUC has ensured are prioritized over non-safety related work.

The natural gas system involves the flow of natural gas from wells to private homes and buildings. The PUC only has authority over part of the natural gas system as indicated below (see green checkmark) and limited to intrastate pipelines.

The PUC does not have jurisdiction over pipelines not engaged in transport (i.e. pipelines directly associated with gas production, and gas piping within a home or business which is the responsibility of the customer and is regulated by the city or county building codes). 

It also does not oversee interstate pipelines - those used to transport hazardous gas across state lines, liquids such as petroleum, petroleum products, anhydrous ammonia, ethanol or other non-petroleum fuel, biofuel, or a liquid which is flammable, toxic or would be harmful to the environment if released in significant quantities.

The PUC inspects and audits all the pipeline operators under the jurisdiction of the 49 USC 60105 certification. The PUC’s role is preventative in nature, with a goal of zero gas escaping the pipeline system in the State of Colorado. Preventing any kind of release or incident/event is performed by inspecting operator construction activities (which include new construction and repairs) and auditing all processes and procedures that are specific to the operator and to the system.

Investigation of releases or incidents/events and enforcement activities are reactive and not preventative in nature. However, these investigations can determine a systemic issue within an operator’s process and procedure that might not be found from a typical inspection or audit, thereby preventing future incidents.

The PUC has 14 full-time staff, including seven full-time inspectors, three part-time inspectors, one Geographic Information System Mapping (GIS) expert, and program administrator. Collectively the team has 167 years of experience in the natural gas industry, with over 260 years of technical experience.