PHMSA issues final rule on underground natural gas storage facilities

The U.S. Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a final rule concerning underground natural gas storage facilities.

The rule addresses safety issues related to downhole facilities, including well integrity, wellbore tubing, and casing. The rule was initiated following the adoption of the PIPES Act of 2016, which required PHMSA to enact minimum federal safety standards for underground natural gas storage facilities. The act followed a natural gas leak near Aliso Canyon, Calif. that occurred from October 2015 through February 2016. The leak resulted in the estimated release of 4.62 billion cubic feet of natural gas.

“The Aliso Canyon incident was one of the largest natural gas releases in U.S. history and affected the lives of thousands of Americans living and working nearby,” PHMSA Administrator Skip Elliott said. “Compliance with this rule will go a long way toward preventing an incident of that magnitude from happening again.”

The new rule clarifies the threshold for reportable changes and events which require PHMSA notification and revises the definition of an Underground Natural Gas Storage facility. The standards will apply to approximately 200 interstate facilities.

PHMSA has sent the final rule to the Office of the Federal Register for publication.