Product Design & Development

Developing Regulations

Friday, September 01, 2006

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Developing Regulations

Early in the morning of Saturday, August 19, 2000, a natural gas line exploded in south-eastern New Mexico near the Pecos River. Eleven nearby campers were killed by the blast and fire. The ensuing fireball was large enough to be seen in Carlsbad, NM, 20 miles to the north.

Federal investigators determined that the cause was severe internal corrosion; more than 70 percent of the wall had been eaten away near the rupture.

Partly in response to the tragedy, the government enacted the Pipeline Safety Improvement Act (PSIA) in 2002. "Under the PSIA, pipelines have to inspect all high consequence areas within a 10 year span, and then, after the initial inspections are done, they have to go back and inspect at 7-year intervals," says Don Santa. The Office of Pipeline estimates that natural gas pipeline companies alone will spend $4.7 billion over 20 years complying with the legislation (and for those that don't, civil penalties of $25,000 to $100,000, and fines up to $1 million for repeat violations, could be levied).

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