ASSOCIATION OF OIL PIPE LINES,
AMERICAN PETROLEUM INSTITUTE,
AND HUNTON & WILLIAMS' THIRD ANNUAL LEGAL ISSUES AND POLICY ROUNDTABLE
ANNAPOLIS, MARYLAND

JULY 28, 2005
NOON

Good afternoon, ladies and gentlemen. I really appreciate that warm welcome.

I want to thank Brigham McCown for that very kind introduction. The Pipeline and Hazardous Materials Safety Administration is an important element of the Department of Transportation's core mission. And that is, safety. PHMSA is doing an impressive job of protecting our Nation's pipelines.

I want to kick things off this afternoon by focusing on what many consider to be the unsung hero of our economy — the pipelines.

Like arteries carrying precious blood to the heart, pipelines transport precious natural resources that are the lifeblood of our country. President Bush came into office four years ago with the first national energy plan in a generation. His plan contains innovative proposals to diversify and increase the supply of energy, and provides ways to make sure that we get energy from producer to consumer.

Today, pipelines carry almost 66 percent of all of the energy products consumed in this great Nation.

It is not surprising, therefore, that pipelines are by far the most important mode of transportation for energy products in the United States. And, they are among the safest.

On average, there have been about 2 fatalities and less than 9 injuries per year over the last decade. And while even one death is one too many, this record is clearly impressive compared to other forms of transportation. For that, I thank you, and please, keep doing what you're doing.

The Department of Transportation is charged with helping your companies be safer today than they were yesterday, and safer tomorrow than they are today.

Our ultimate goal is zero – no deaths, no injuries, no releases to the environment, no operating errors.

When there is a problem that needs quick attention, all of you know how long it can take to get a permit from the federal government to make repairs, especially where private land is involved.

Many times, you have to deal with a host of government agencies, and that can be costly and time consuming. Help may be on the way.

Under President Bush's direction, federal agencies are working on a set of Best Management Practices for pipeline repairs on federal lands. When a pipeline company uses these practices, federal agencies will expedite their reviews, because they can be sure that these practices will be safe, and protect the environment.

We hope and expect that this process will greatly reduce the time that it takes to get approvals for most repairs.

For repairs on private lands, I am pleased to announce that significant progress is being made toward an agreement between the Departments of Transportation, Interior, and Commerce.

This agreement, once finalized, would create a pilot program to speed up compliance with the Endangered Species Act, so that permits for repair work on non-federal lands can be issued in a timely manner.

Working together with other agencies is especially critical when you consider that PHMSA has identified at least 66,000 sites where oil and intrastate gas transmission lines cross areas that are also home to threatened and endangered species.

By streamlining coordination and turning permit applications around more quickly, we can achieve new levels of protection for the environment and for public safety.

As the safety regulator, I believe that the Department of Transportation has unique insight on the condition of the infrastructure and the need for it to grow.

This insight leads us to have longer-term concerns about the adequacy of capacity and the difficulty of growing the national infrastructure.

You've told us that you have the same concerns. And that's why I look forward to sitting down with you and rolling up our sleeves to find a solution.

The extraordinary work that your industry and PHMSA have done in implementing the Pipeline Safety Improvement Act of 2002 shows how well we work together.

This law has a number of innovative features, including its embrace of integrity management programs, and new inspection technology, as well as its reliance on risk-based standards. Plus, it lays out an exceptionally ambitious inspection schedule, as you all know.

Since we put the integrity management programs in place, statistics show a double digit decrease in the number of significant accidents per year.

That's because the new inspection regime is giving us a better, more detailed picture of the condition of our infrastructure than ever before.

And there is every reason to believe that the inspection-and-repair cycle required by the law will significantly reduce future accidents. That's good for the economy, and it's good for public safety and the environment.

Each and every one of us in this room should be proud of what we've accomplished together. But there's another challenge facing us, one that's the subject of tomorrow's kickoff panel discussion. And that is, communities and their compatibility with pipelines.

The National Academy of Sciences has recommended that we provide guidance to communities in making informed choices about how to live safely with pipelines.

I invite you to join us in creating a framework for local decision-making and building a new partnership, like the successful Common Ground Alliance.

I'd like to conclude this afternoon by pledging the Department's continued cooperation in helping you provide safe, efficient, and reliable service to your customers.

Day in and day out, you are playing a critically important role in our Nation's economic growth, and for that, President Bush and I sincerely thank you.

Travel safely. May God bless each and every one of you, and may God continue to bless the United States of America.

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