Obama Administration Pushes Pipeline Safety Program

The Obama administration renewed its push on Monday for tougher pipeline safety regulation following accidents in recent years that killed dozens of people and disrupted energy markets.

Transportation Secretary Ray LaHood sought to revive legislation that would put more teeth into inspections and fines that critics claim are woefully inadequate for the size and importance of the U.S. oil and gas network.

LaHood also called on pipeline owners and operators to review their networks to identify any areas at risk for accidents and expedite repairs and replacement work, if necessary.

“I am taking on this critical issue to avoid future tragedies,” LaHood said.

LaHood also said he planned to convene a pipeline safety meeting in Washington on April 18 with state and industry officials and other groups to discuss ways for improving the safety and efficiency of pipeline infrastructure.

A web of mostly underground pipelines in the United States is run by 3,000 companies and transports most of the U.S. oil and gas supply.

The Transportation Department oversees the largest lines, while state regulators monitor others.

Pipeline safety has improved sharply over the past 20 years. But from 2006 through 2009 U.S. oil and gas pipeline accidents killed 56 people, caused $1.2 billion in property damage and spilled 381,000 barrels of oil, government data shows.

Three serious oil spills occurred on onshore pipelines last year. An aging line also exploded in California, killing eight people.

A natural gas explosion killed five people this past February in Allentown, Pennsylvania, where LaHood was scheduled later on Monday to unveil his safety plan.

LaHood wants Congress to increase maximum fines for pipeline violations from $100,000 per day to $250,000 per day, and from $1 million for a series of violations to $2.5 million for a series of violations.

He also urged lawmakers to authorize his agency to close regulatory loopholes, strengthen risk management requirements, add more inspectors, and improve data reporting to help identify potential pipeline safety risks.

Similar legislation last year was never enacted by Congress, and prospects are uncertain now with more business friendly Republicans controlling the U.S. House .

Many pipelines date to the 1960s or earlier and old lines are rarely retired. The length of active U.S. pipelines has grown more than 20-fold since the 1920s.

Pipelines, including new ones, are gaining importance as the United States relies on more Canadian oilsands crude, a sediment-laden oil that studies say may corrode lines faster.

(Reporting by John Crawley; additional reporting by Tom Doggett and Joshua Schneyer; Editing by Diane Craft)