The Government Accountability Office (GAO) urged federal regulators to continue working to update regulations to ensure the integrity of about 8,600 miles of active offshore oil and gas pipelines. The U.S. government watchdog also handed down recommendations for addressing the environmental and safety risks associated with decommissioning.
The GAO said the Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) does not generally conduct or require any subsea inspections of active pipelines. Instead, it relies on monthly surface observations and pressure sensors to detect leaks, which aren’t always reliable for detecting ruptures.
The findings were part of GAO’s review of the BSEE’s management of offshore oil and gas pipelines, which were published in a report on Monday. The review included interviews with BSEE officials and members of other agencies with offshore responsibilities.
In response to a pair of significant oil leaks in 2016 and 2017, BSEE partnered with the oil and natural gas industry to improve subsea leak detection, but said the technologies identified remain relatively new and cannot be retrofitted to a majority of pipelines.
The bureau acknowledged that its regulations are outdated and do not address how pipelines should be inspected nor the complexities of deep water pipeline operations. Its regulations also do not take into account changes in technological standards.
A proposal in 2007 by the BSEE addressed offshore pipeline integrity, including new requirements regarding pipeline inspection and subsea leak detection technologies. However, that effort stalled and since then, limited progress has been made to update its pipeline regulations.
“Without taking actions to develop, finalize and implement updated regulations to address identified oversight gaps, BSEE will continue to be limited in its ability to ensure the integrity of active pipelines,” GAO said.
It also recommended the bureau address safety and environmental risks associated with the decommissioning of offshore pipelines. The lack of oversight thus far, according to GAO, has contributed to BSEE and its predecessors authorizing the industry to leave more than 97% (about 18,000 miles) of all decommissioned pipeline mileage on the GOM seafloor since the 1960s.
As pipelines age, they are more susceptible to damage from corrosion, mudslides and seafloor erosion, which can result in leakage of oil and gas into the ocean, according to GAO. Additionally, hurricanes can move pipelines extensive distances, which may damage subsea habitat, impede access to sediment resources and create navigational and trawling hazards.
“Generally, pipelines must be removed from the seafloor,” GAO said. “BSEE, however, may allow pipelines to be decommissioned-in-place if certain criteria are met. Such a high rate of approval indicates that this is not an exception, however, but rather that decommissioning-in-place has been the norm for decades.”
The GAO also found that the BSEE does not ensure operators meet decommissioning standards, such as cleaning pipelines, because they do not observe any pipeline decommissioning activities. The bureau also does not inspect pipelines after their decommissioning, or verify most of the pipeline decommissioning evidence submitted.
In addition, the condition and location of pipelines is not monitored by BSEE following their decommissioning-in-place, according to the GAO. This reduces its ability to mitigate any long-term risks, such as pipeline exposure or movement. Additionally, if pipelines decommissioned-in-place are later found to pose risks, there is no funding source for removal.
“BSEE has made limited progress in updating what it acknowledges are outdated pipeline regulations,” GAO said.
The Interior generally agreed with GAO’s recommendations and indicated that the BSEE is aiming to rewrite some rules related to pipelines and rights of way. The bureau is working to clarify current practices and regulatory requirements while maintaining safety and environmental protections.
The rulemaking, according to the Interior, would result in an “up-to-date set of pipeline regulations that reflect technological advancements, industry best practices and lessons learned from implementing existing requirements.”