The American Petroleum Institute today said new proposed rules by the federal government on natural gas transmission and gathering lines are too costly and would do little to advance safety.
API cited a study released last week by ICF International that suggests the Pipeline and Hazardous Materials Safety Administration greatly underestimated the costs of implementing the rules. According to the ICF report, the rules would cost $33.4 billion over 15 years — well above the PHMSA’s estimate of $597 million over that same time period.
API said the costs would put the most strain on small gathering companies, whose annual compliance costs nearly equal the revenues they make from gathering fees. Additionally, API Midstream Director Robin Rorick said the rules would do little to enhance the safety of natural gas pipelines, which he said are “99.999-percent safe.”
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