Pipeline Damage Reporting Gets a Number Bump: Yawn-Worthy Update
Published Date: 7/1/2025
Rule
Summary
This update changes the rules for when pipeline accidents must be reported by raising the property damage amount that counts as a reportable incident. It makes clear that some extra costs from fixing leaks don’t count toward this damage total. Pipeline companies will follow these new rules soon, helping them report more accurately without extra paperwork or costs.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Higher damage threshold for reports
The rule raises the property damage amount that counts as a reportable incident or accident for gas and hazardous liquid pipeline releases. Pipeline companies will use the new, higher threshold when deciding whether a release must be reported.
Repair investigation costs excluded
The rule clarifies that certain indirect impacts from investigating and repairing a release (for example, extra costs tied to fixing leaks) do not count toward the property damage total used to determine a reportable incident. Pipeline operators must exclude those specified indirect costs when calculating whether damage meets the reporting threshold.
Inflation-adjusted liquid pipeline threshold
The rule adopts an inflation-adjusted property damage threshold for reporting hazardous liquid pipeline accidents that is identical to the inflation-adjusted threshold already used for gas pipeline incident reporting. This aligns hazardous liquid reporting thresholds with the gas pipeline approach.
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