PHMSA Penalties Effect on Pipeline Incidents

Energy Worldnet (EWN) • November 21, 2014

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In April 2014, PHMSA released a statement summarizing the impact of strict enforcement actions on pipeline safety compliance for 2013. The numbers tell a compelling story about the relationship between rigorous enforcement and improved safety outcomes.

2013 Enforcement Highlights

PHMSA's 2013 enforcement actions resulted in $9.7 million in civil penalties — the highest yearly amount assessed since PHMSA's inception. These penalties were issued across 266 enforcement cases in five operational areas: gas transmission, gas distribution, liquefied natural gas, underground natural gas storage, and hazardous liquids.

Long-Term Impact

The trend since 2009 reflects a consistent commitment to enforcement:

  • More than $33 million in penalties assessed since 2009
  • A 45% reduction in serious incidents over the same period

This correlation between aggressive enforcement and incident reduction demonstrates that civil penalties serve as an effective deterrent and driver of compliance investment.

Updated Maximum Penalties

In September 2013, PHMSA updated its maximum civil penalty amounts:

  • Maximum per violation per day: $200,000
  • Maximum for a related series of violations: $2,000,000

The message is clear: compliance with pipeline safety regulations is not optional, and the financial consequences of violations continue to increase. Contact EWN to ensure your OQ and safety programs are built to withstand PHMSA scrutiny.

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