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Pa. Seeks More Say on Shale Pipelines
Sunday, March 29, 2009 5:51 AM


(Source: The Times-Tribune)trackingBy Robert Swift, The Times-Tribune, Scranton, Pa.

Mar. 29--HARRISBURG -- Since development of the Marcellus Shale formation could potentially last 50 years, state regulators are seeking authority to make sure the underground pipelines carrying the natural gas product are well-maintained and safe.

The Public Utility Commission regulates the safety of natural gas pipelines in the state. The agency is pushing for state legislation to extend this authority over nonutility pipelines that will eventually be built throughout the Marcellus Shale, underlying a large swath of Northeast and Western Pennsylvania.

There's long-standing recognition that natural gas pipelines can pose safety hazards to the public.

A federal pipeline safety agency was formed in the 1960s after some deadly pipeline explosions. State law requires that individuals or contractors notify a "one-call" center three days before excavation work to determine if natural gas pipelines are nearby. The center then notifies utilities of the pending work so they can mark the pipeline route.

Natural gas is a highly flammable substance. Gas can escape into the atmosphere through leaks, improper fittings or corrosion of the pipe and ignite if sparked.

Pipelines in Pennsylvania are typically made of cast iron or steel. They are subject to the freeze-and-thaw cycle of Pennsylvania winters.

"We are seeing a lot of corrosion, breaking and cracking," said PUC spokeswoman Jennifer Kocher.

PUC Chairman James Cawley outlined the agency's goals last month before the House Consumer Affairs Committee. The agency is seeking authority to inspect pipelines owned by commercial natural gas producers that are outside its traditional jurisdiction over public utilities. The agency also wants to increase fines for pipeline safety violations. Enabling legislation has yet to be introduced.

Currently, the PUC's gas safety division inspects and investigates complaints concerning the utility-owned natural gas lines that connect to homes and businesses. The division carried out more than 600 inspections and issued 70 safety violations in fiscal 2007-08.

PUC officials forecast extensive pipeline-building in coming years as the deep gas pockets in the Marcellus Shale are developed.

This includes smaller "gathering" pipelines to carry gas from the wells to a central compressor station and larger pipelines to carry the product to metropolitan areas.

"There will be a need for new (Marcellus Shale) pipelines in the future to accommodate the anticipated volume of gas," said Stephen Rhoads, president of the Pennsylvania Oil and Gas Association, an industry trade group.

Mr. Rhoads has yet to see the PUC's proposal in detail. He suggested the small "gathering" pipelines don't warrant the type of regulation the agency is considering.

The industry has its own pipeline inspection and maintenance programs.

"You don't want to lose your marketable commodity," Mr. Rhoads said. "Every leak is a dollar lost. It would be silly for us not to maintain the integrity of our pipeline system."

Contact the writer: rswift@timesshamrock.com

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Copyright (c) 2009, The Times-Tribune, Scranton, Pa.

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