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PUC Denies Conventional Oil & Gas Industry Petition To Reconsider Regulation Of Class One Natural Gas Gathering Pipelines

The Public Utility Commission published notice in the April 1 PA Bulletin it has denied a petition by conventional oil and gas drillers to reconsider regulation of Class One natural gas gathering pipelines.

On December 8, 2022, the Commission adopted an order asserting jurisdiction over Class 1 natural gas gathering pipelines and certain liquified natural gas (LNG) facilities pursuit to the Gas and Hazardous Liquids Pipelines Act (Act 127) and in response to amendments to federal pipeline safety regulations by the Pipeline and Hazardous Materials Safety Administration.

The Pennsylvania Independent Oil & Gas Association filed a Petition for Reconsideration (Petition) requesting the Commission to reconsider its determination that certain Class 1 gathering lines, specifically Type R lines, are subject to Act 127 registration and assessment given that such lines are subject only to annual and incident reporting requirements under Part 191 regulations and are not subject to the broader safety requirements under Part 192 regulations.

At its March 16 meeting, the PUC denied PIOGA’s request for reconsideration regarding Act 127 registration but will grant clarification as to Act 127 assessments.

Specifically, they found Act 127 gives the Commission jurisdiction over Type R intrastate pipeline operators and requires these operators to register with the Commission on an annual basis and report the location of the pipeline by class and approximate aggregate miles for inclusion in the Commission’s registry.

The Commission also requires each pipeline operator, regardless of class location, 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.

However, consistent with Act 127, as discussed further below, we will not assess these operators and will not require them to file Part 191 reports with the Commission at this time, pending PHMSA development of new reporting requirements.

Click Here for a copy of the PUC’s order related to the PIOGA petition.

PUC Docket No. M-2012-2282031

PA Oil & Gas Public Notice Dashboards:

-- Pennsylvania Oil & Gas Weekly Compliance Dashboard - March 25 to 31; More Violations At Equitrans Gas Storage Area; Spring Walk Yields Hissing Gas Well On State Game Lands [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - April 1 [PaEN]

-- DEP Posts 55 Pages Of Permit-Related Notices In April 1 PA Bulletin [PaEN]

PA Oil & Gas Compliance Reports

-- Feature: 60 Years Of Fracking, 20 Years Of Shale Gas: Pennsylvania’s Oil & Gas Industrial Infrastructure Is Hiding In Plain Sight [PaEN]

-- Conventional Oil & Gas Well Owners Failed To File Annual Production/Waste Generation Reports For 61,655 Wells; Attorney General Continues Investigation Of Road Dumping Wastewater [PaEN]

-- DEP Issued 754 Notices Of Violation For Defective Oil & Gas Well Casing, Cementing, The Fundamental Protection Needed To Prevent Gas Migration, Groundwater & Air Contamination, Explosions [PaEN]

-- DEP Report Finds: Conventional Oil & Gas Drillers Routinely Abandon Wells; Fail To Report How Millions Of Gallons Of Waste Is Disposed; And Non-Compliance Is An ‘Acceptable Norm’ [PaEN]

-- DEP 2021 Oil & Gas Program Annual Report Shows Conventional Oil & Gas Operators Received A Record 610 Notices Of Violation For Abandoning Wells Without Plugging Them [PaEN]