PHMSA Announces All-Time High in Proposed Penalties in 2013, Continuing Trend of Tougher Enforcement

On Monday, PHMSA announced that it proposed more than $9.7 million in civil penalties against pipeline operators for safety violations in 2013, marking an all-time high for the agency.  PHMSA also announced that it initiated 266 enforcement cases against pipeline operators in 2013, including for problems with pipeline integrity management systems, risk assessments, and failure prevention and mitigation programs.

The 2013 numbers continue a trend of tougher enforcement.  Since 2009, PHMSA has proposed more than $33 million in civil penalties against pipeline operators, which is $10 million more than the amount proposed in the previous five-year period.  With higher maximum penalties applying to violations of pipeline safety regulations that occur after January 3, 2012 ($200,000 for each violation and $2,000,000 for a related series of violations), the $9.7 million proposed in 2013 may not stand as an all-time high for long.  According to Transportation Secretary Anthony Foxx, “The proposed fines send the powerful message that we are holding non-compliant pipeline operators accountable for their actions and will be using our higher civil penalty authority to the max whenever necessary.”

PHMSA credited tougher enforcement with achieving a consistent annual decline and overall 45% reduction in serious pipeline incidents since 2009 and reported a 65% reduction in the average time it takes to initiate and close an enforcement case.  According to PHMSA Administrator Cynthia Quarterman, “The results are clear: we are using our enforcement tools to hold pipeline operators accountable and also resolve enforcement actions quicker than ever.”