Have You Looked At Your Pipeline Facility Response Plan...Lately?

For those of you operating oil pipelines, a recent Associated Press article, BP's Shocking, Spurious Action "Plan"¹ should be a call to introspection. Regarding BP's Facility Response Plan applicable to the Deepwater Horizon incident in the Gulf of Mexico, the article reports numerous deficiencies in the FRP which reportedly was "overly optimistic" and undermined by "wildly false assumptions." Among those deficiencies are the listing of a wildlife expert who was dead when the plan was written, apparent overstatement of response resource availability and effectiveness, spill volume underestimation, deficient modeling of spill trajectory, and an overall lack of coordination. The article also asserts that BP has implemented response actions "on the fly" rather than having realistic plans in place. An avalanche of similar allegations against the oil industry has followed the AP article.

And while it may be a little early, given the focus on the Gulf and offshore drilling, Washington ultimately will react industry-wide. Indeed, the many investigations that will follow the Deepwater incident will seek to understand why, once the spill had started, the response evolved in the manner it did. Moreover, public and political outrage will ensure that more is done by federal agencies to try and close the gap between expectations and performance. From a regulatory perspective, you must be prepared for the upcoming scrutiny. From a practical perspective, you and your company have the best information available to ensure that you do not find yourself in a similar situation.

Since today's focus is on offshore drilling, now would seem an ideal time to review and refine your pipeline FRPs at a minimum, and possibly even to reevaluate response planning as a whole.²

One particular aspect of response preparedness warrants your prompt consideration. Each in its own way, the regulations for onshore and offshore pipeline FRPs require that notice be given to the appropriate agency in the event circumstances evolve to the point that response capabilities are diminished below full capacity (15 days to MMS for offshore, 30 days to PHMSA for onshore). In light of the concentration of resources responding to the Deepwater spill, one might ask whether or not sufficient response capability is available in other areas of the Gulf. Put another way, are your OSROs at the Deepwater response, leaving you with less response capability than you had planned and certified? You may wish to consider whether or not to bolster response capabilities needed under your FRP.

In view of the events unfolding in the Gulf and in light of the perceptions created by the press coverage, we believe that the following areas of your FRP probably warrant a review:

1. Calculation of Worst Case Discharge Volume: Review and evaluate input variables for flow rate, shutdown time and drainup, as well as the line profile and related factors.
2. Consistency with the NCP and the Applicable ACP: Ensure you are working with the current versions of the NCP and ACP and that your FRP is aligned and consistent.
3. Identification of Environmentally and Economically Sensitive Areas: Review and evaluate the current status of areas of environmental sensitivity, as well as economically sensitive areas, and the factors that drive that importance.
4. Determination of Necessary Response Resources: Review and evaluate the bases and the reasonableness of assumptions and estimates within your FRP. Also consider whether or not additional scrutiny might be given to any two-year certification letters for FRPs under agency review.
5. Response Actions: Response procedures and methods surely will come under scrutiny for their reasonableness and effectiveness, including considerations related to adverse weather conditions. Considering the brightly illuminated gap between regulatory sufficiency and newly restored political expectations, ask whether or not your own past experience has been integrated into your FRP.
6. Review and Update of your FRP: Two years for offshore, five years for onshore, and less than that for (A) certain changes to your system (extensions, new construction, commodity changes, and more) and (B) certain changes to your FRP (changes to procedures, the qualified individual, OSROs, and more).
7. Training; Drills and Exercises: Are the right activities being practiced on the right schedule and under real-world circumstances?

Footnotes

1. Justin Pritchard, Tamara Lush and Holbrook Mohr, June 9, 2010.

2. Response plan requirements for onshore oil pipelines are found at 49 CFR Part 194 and for offshore oil pipelines at 33 CFR Part 254.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.