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PHMSA Announces Proposed Rule Addressing Natural Gas Pipeline Safety

The Pipeline and Hazardous Materials Safety Administration (PHMSA) announced a Notice of Proposed Rulemaking that would update critical safety requirements for natural gas transmission pipelines.  Sutherland attorneys Paul Forshay, Michael Stosser, and Allison Speaker authored the following Legal Alert describing the rule.  Comments on the rule are due by June 7, 2016 PHMSA has issued...

2015 Year in Review

Earlier today, we released the 2015 Year in Review, which assembles the 20 posts from last year that received the most reader interest.

Importance Of Conditions Precedent To Indemnification Demands Highlighted In Pipeline Case

In 1994, an oil and gas company (Company A) sold a pipeline to Company B, which has owned and operated it since.  During the sale, the companies entered into a Purchase and Sale of Assets Agreement whereby the parties agreed that any contamination occurring before the agreement’s closing date would be Company A‘s responsibility and any contamination after the closing date...

PHMSA Proposes New Pipeline Safety Regulations

The U.S. Department of Transportation’s Pipeline and Hazardous Safety Administration (PHMSA) announced proposed regulations to revise and update its pipeline safety standards and reporting requirements on October 1, 2015.  The deadline to submit comments on the proposed rulemaking is January 8, 2016.  PHMSA estimates that compliance with the proposed rule will cost the industry...

Refinery’s Insurance Claims Following Supply Interruption Caused By Pipeline Rupture Taken Up In Arkansas

An Arkansas refinery received oil from a pipeline owned and operated by a third party.  In 2007, the pipeline owner inspected the pipeline and identified anomalies at various locations.  The inspection vendor, however, misidentified one anomaly as a seam weld unlikely to cause a failure but this particular weld anomaly caused the pipeline to rupture in April 2012.  After the rupture,...

NTSB Issues Safety Recommendations To PHMSA On Crude By Rail Issues

On Friday, the National Transportation Safety Board issued a 10-page Safety Recommendation to the Acting Administrator of the Pipeline and Hazardous Materials Safety Administration.  The NTSB derived the recommendations from its investigations of the recent derailments of crude-carrying trains in West Virginia, Illinois, and Ontario.  The letter, which can be accessed here, requests...

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