Enron Mail

From:shelley.corman@enron.com
To:stanley.horton@enron.com
Subject:Pipeline Reform Coalition Notes
Cc:
Bcc:
Date:Tue, 11 Apr 2000 17:31:00 -0700 (PDT)

Based on discussions with Jeff Keehler, Dave Johnson and Mike Terraso last=
=20
week, we agreed that it would not be prudent for individual pipelines=20
representatives to attend the coalition meetings Sunday & Monday. The tone =
of=20
the meeting announcements made it clear that this grass roots group is not=
=20
receptive towards receiving information on pipeline safety records. Terry=
=20
Boss of INGAA attended the meeting. =20
Included in the audience were the parents of the Bellingham?victims and=20
members of Safe Bellingham, and the speeches were not surprisingly politica=
l=20
in tone -- the inadequacy of OPS and the need for funds for state safety=20
measures; OPS should be restructured: FERC should be restructured; the EIS=
=20
process is a joke. Here are samples of some newspaper articles that INGAA=
=20
forwarded.
Just because we didn't take an active role in the Coalition meeting doesn't=
=20
mean we aren't moving forward at developing our legislative Enron &=20
recommended INGAA strategy. Dave, Phil, Jeff and I met on Monday. Jeff=20
reports that while pipeline oversight legislation is unlikely this year, we=
=20
will absolutely have to deal with the appropriations issue (added user=20
fees). Jeff is outlining a compromise position that he thinks could be=20
politically feasible -- something along the lines that we can live with add=
ed=20
user fees directed towards one call and public education programs. We'll g=
et=20
this outline out shortly. I want to get it in Bob Hill's hands before the=
=20
INGAA Board meeting.

Pipeline officials hear hard questions=20
SUMMIT: Parents of Wade King, Stephen Tsiorvas speak to panel.=20

Stephen Power, The Bellingham Herald =20

WASHINGTON, D.C. -- The nation's top pipeline regulator and a White House=
=20
environmental aide came under sharp questioning Monday when the parents of=
=20
two children killed in a Bellingham pipeline blast confronted them at a=20
conference of safety activists. =20

With more than four dozen audience members watching, one of the parents, =
=20
Frank King, handed a picture of his 10-year-old son, Wade, to White House=
=20
aide Gabrielle Tenzer and asked her to deliver it to President Clinton. =
=20

"Ask him what he would have done if Chelsea had been standing by that=20
creek," King said, referring to Whatcom Creek, where his son was playing=
=20
last June 10 when the explosion occurred in the pipeline of Olympic Pipe=
=20
Line Co. =20

Another parent, Katherine Dalen, drew applause when she stood and told =20
federal pipeline regulator Richard Felder that the concept of safety "means=
=20
something different to me than it does to you." She later handed Tenzer a =
=20
funeral program with the picture of her 10-year-old son, Stephen Tsiorvas,=
=20
who died along with Wade and 18-year-old Liam Wood. =20

The tense exchanges occurred on the second day of the National Pipeline =20
Safety Reform Conference, a gathering of environmentalists, local governmen=
t =20
leaders and citizens who want tougher regulations on underground fuel=20
pipelines. Administration officials who attended the conference Monday --=
=20
Tenzer, Felder and Assistant Attorney General Lois Schiffer -- outlined=20
their efforts to prevent pipeline accidents and told participants that the=
=20
federal Transportation Department planned to propose safety reforms. =20

But audience members chortled at some of the panelists' remarks and=20
expressed frustration with the performance of the U.S. Office of Pipeline=
=20
Safety, the federal agency that regulates the nation's pipelines. =20

"We're really chagrined that there was no one here (from the administration=
) =20
the past two days taking notes," said Susan Harper, executive director of =
=20
Cascade Columbia Alliance, a Seattle group that helped block Olympic Pipe=
=20
Line's proposed cross-Cascades fuel pipeline in Washington last year. "Tha=
t=20
was a big oversight on your part." =20

As part of the U.S. Transportation Department, the Office of Pipeline Safet=
y =20
regulates more than 157,000 miles of hazardous liquid lines and more than=
=20
2.2 million miles of natural gas lines throughout the country. But with on=
ly=20
55 inspectors to cover more than 2 million miles of pipe nationwide, criti=
cs=20
have questioned the agency's effectiveness. =20

The agency has also drawn attention for sharply limiting the role states ca=
n =20
play in policing interstate pipelines -- a trend that delights oil and gas =
=20
interests but worries some local governments. =20

Felder said his agency has allowed Olympic Pipe Line to continue operating =
=20
because the company has performed "appropriate testing" of its lines. But h=
e =20
acknowledged the agency wouldn't know the cause of the Bellingham accident=
=20
until the National Transportation Safety Board completes its probe. The=20
board's investigation has stalled in recent months because some Olympic=20
employees have refused to cooperate, fearing their testimony could be used=
=20
by prosecutors in a potential criminal case. =20

"We'd also like to know more about how (the Bellingham) accident occurred. =
=20
... In the end, we will have some of these answers," said Felder, who is th=
e =20
pipeline office's associate administrator. But, he said, "the less=20
information we have, the more cautious we are and the more conservative we=
=20
are." =20

Felder's comments drew an angry response from Frank King, who waved a =20
newspaper clipping about a day-care center in his state that was shut down =
=20
immediately when a child in its custody died of undetermined causes. =20

"I find it outrageous," King said. "This is the only time I've ever seen =
=20
where one person is allowed to continue operating after murdering three =20
children." =20

Felder said he is encouraging states to focus on intrastate lines, such as =
=20
natural gas lines that heat homes. The vast majority of pipeline accidents=
=20
-- about 80 percent -- involve such intrastate systems, according to=20
federal records. He also said most accidents occur as a result of third=20
parties, such as construction crews that dig without checking for fuel=20
lines. =20

"We're very interested in state input," he said. "But you've got to look at=
=20
where the risks are. They aren't in the big lines. They're in the small=20
lines." =20

Tenzer did not respond directly to King when he approached her, but told a =
=20
reporter afterward that she would make sure Clinton received the picture.=
=20
She declined to answer when a reporter asked her for the White House's vie=
w=20
of the Office of Pipeline Safety's performance. =20

Reach Stephen Power at spower@gns.gannett.com or call (703) 276-5806.

?
=20

Pipeline Reform Summit in Washington, D.C.
Industry lobbyist takes notes for OPS=20
GOVERNMENT: Official shrugs off potential conflict of interest. =20

Khurram Saeed, The Bellingham Herald =20

WASHINGTON, D.C. -- Just when it looked like it couldn't get any worse for=
=20
the federal Office of Pipeline Safety, it did. =20

The head of OPS told a reporter Monday that a lobbyist for a natural gas =
=20
association had been taking notes about pipeline safety reform on OPS'=20
behalf for the past two days at a national pipeline conference. =20

OPS, the agency responsible for overseeing the nation's interstate=20
pipelines, has been at the center of fierce criticism by pipeline activist=
s=20
over the years for being too close to the fuel industry. That cozy=20
relationship has put corporate profits above public safety, pipeline=20
reformers contend. =20

Some conference speakers laughed out loud and shook their heads in disbelie=
f =20
when told that Richard Felder was relying on the Interstate Natural Gas =20
Association of America for information about the conference. =20

"It's perfect," said Virginia attorney Jim Pates, an outspoken and longtime=
=20
critic of OPS. "It reflects not only the closeness of the relationship, but=
=20
the insensitivity of how it appears to the public." =20

Felder dismissed any potential for conflict of interest even though his =20
agency monitors companies that belong to the gas association. He said he=20
knew half of the 50 people in the room and was familiar with their concern=
s,=20
thus the notes wouldn't tell him something he didn't already know. =20

"I'm not worried about getting the issues, because there's a roomful of =20
people who'll send them to me," Felder said after speaking at the=20
conference. =20

Earlier in the day, several speakers publicly questioned why OPS hadn't sen=
t =20
a representative, such as a note taker or public relations person, to the =
=20
meeting that covered such topics as improving pipeline safety standards, =
=20
protecting whistleblowers and granting more authority to local governments.=
=20

"It's a professional organization that should be listening to us," said=20
Susan Harper, head of a Puget Sound environmental group that fought Olympi=
c=20
Pipe Line Co.'s proposed Cascade pipeline. "Whether they like us or not,=
=20
they should be here." =20

Terry Boss, vice president of safety and operations for the natural gas =20
association, said he was taking notes on his organization's behalf and=20
offered to share them with OPS. =20

"I'm just doing a favor," Boss said. "Would it be better for OPS to have =
=20
someone here or for OPS not to have someone here?" =20

Frank King, whose 10-year-old son was killed in last June's Bellingham =20
pipeline explosion, said it was ironic that officials from the agency that=
=20
needs to learn about pipeline safety the most weren't there in person for=
=20
the two-day conference. =20

"Their arrogance is evident everywhere we go," he said. =20

"It's perfect. It reflects not only the =20

closeness of the relationship, but the =20

insensitivity of how it appears to the =20

public." =20


?

Chances dim this year for pipeline laws=20
POLITICS: Keep pushing, pipeline activists at conference are told.=20

Khurram Saeed, The Bellingham Herald =20

WASHINGTON, D.C. -- Two congressional bills seeking to reform the nation's=
=20
pipeline industry might not become law until next year, two Washington sta=
te=20
pipeline reformers said Monday. =20

In itself, the announcement wasn't all that surprising, given that change =
=20
comes slowly here -- particularly for industries with powerful connections=
=20
and lots of money to spend on lobbying. =20

What was unexpected was the concession from pipeline reformers, who have =
=20
stated in the past that the current political climate -- an election year=
=20
with lingering shockwaves from the Bellingham tragedy and pending=20
reauthorization of the federal Office of Pipeline Safety -- was ideal for=
=20
immediate change. =20

Two proposed laws -- Senate Bill 2004, introduced by Sen. Patty Murray, =20
D-Wash., and House Bill 3558, brought forward by Rep. Jack Metcalf, R-Langl=
ey=20
-- would impose strict standards on pipeline operators. Both bills are sti=
ll=20
in committee. =20

The committee chair must support the bill to send it for a full vote. That'=
s =20
not likely to happen this session, considering there are 47 bills ahead of =
=20
Murray's bill in the Senate Commerce Committee. =20

And Metcalf said he is having a hard time getting colleagues interested in =
=20
buried pipelines. =20

"The phrase out of sight, out of mind, certainly applies when pipelines are=
=20
concerned," he told conference attendees in a speech. =20

"Even if we don't get a bill out this year, we need to keep working on=20
this," said Carl Weimer, executive director of SAFE Bellingham, a local=20
pipeline activist group that has gained national stature. =20

David Bricklin, the Seattle attorney who has represented several cities, =
=20
including Bellingham, against Olympic Pipe Line Co., said the delay could b=
e=20
a blessing in disguise. =20

"Sometimes in a rush to get any bill through, you settle for less than if=
=20
you waited a little bit longer," he said. =20

Although people attending the national pipeline conference here agree eithe=
r =20
bill would be an improvement, they are proposing several changes. The=20
pipeline reformers want to amend the two congressional bills in order to: =
=20

=01=07 Broaden a state's power so OPS could reject safety regulations and =
=20
environmental protection programs only if they compromise safety. =20

=01=07 Mandate use of leak-detection devices. =20

=01=07 Require water-pressure testing of pipelines every five years. =20

=01=07 Require use of fail-safe pipeline devices that don't rely on comput=
ers or=20
human intervention. =20

=01=07 Upgrade safety management rules. =20

=01=07 Create pipeline oversight committees made up of citizens and local =
elected=20
officials. =20

Rick Kessler, an aide to Rep. John Dingell, D-Mich., long a champion of =20
pipeline reform, said the national pipeline coalition has provided an=20
impetus never before seen in Washington, D.C. Momentum for the bills won't=
=20
wane if activists remain vigilant, he said. =20

"Don't stop pushing," Kessler said. "Once you do, there'll be a void on one=
=20
side. There are people here full-time paid to keep pushing on the other=20
side." =20

Weimer said pipeline reformers need to come up with the cash to hire their =
=20
own lobbyist to track pipeline happenings in the nation's capital. =20

"When we all go away, we need someone here in D.C. to tell us what's going =
=20
on," he said. =20

The Associated Press contributed to this article.

?