Enforcement action against BP wraps up

Federal pipeline regulators recently closed a long-running enforcement case against BP Exploration (Alaska) Inc.

The case began in July 2009, when the Pipeline and Hazardous Materials Safety Administration inspected written procedures for operations, maintenance and emergency response on the Greater Prudhoe Bay natural gas liquids pipeline system.

The agency subsequently issued BP an order to amend its “inadequate” procedures.

The case concerned, in part, whether a 6-inch diameter pipeline running to Flow Station 1 was subject to federal regulations. BP argued it was not, contending the pipeline was a “production flow line” carrying liquids subject to additional processing in separation facilities prior to entering the trans-Alaska oil pipeline.

PHMSA said BP’s argument was “not persuasive,” noting that the line originated at a pipeline the company acknowledged was a regulated transmission pipeline.

In an Aug. 27 letter closing the case, PHMSA Western Region Director Chris Hoidal wrote that BP appeared to have corrected the inadequacies. The letter said BP submitted a statement on July 18 agreeing that its NGL pipeline was subject to federal regulations.

BP also stated that “inspection intervals and updated requirements will be implemented by year end 2013,” PHMSA said.

—Wesley Loy