17. OIL AND GAS: PG&E pipeline safety standard is insufficient, federal officials say (03/14/2011)

Federal officials called Pacific Gas and Electric Co.'s safety standard an "incorrect" interpretation of government safety regulations, saying the company had avoided costly inspections of pipelines like the one that exploded in San Bruno, Calif.

According to a company document, PG&E decided in 2008 that it would test for problems only if its pipeline pressures spiked above 10 percent of a standard defined by federal rules. Federal regulations dictate such pipelines should be inspected for seam damage if pressures rise even slightly above the federal standard.

PG&E said such tests could cost from $125,000 to $500,000 per mile and could shut down a line for days. The 10 percent level was taken from a separate federal regulation that allows pipelines to temporarily exceed pressure caps.

The company did not explain why it transferred the 10 percent exception to this particular federal pressure cap.

"We are currently reviewing all of our risk management policies and procedures," PG&E spokesman Joe Molica said. "Safety is our highest responsibility, and we are working hard to restore public confidence in the safety and integrity of our gas pipeline operations."

Experts said the 10 percent add-on appeared to have no federal regulatory support.

"They are on the defensive to explain why they have done something so weird here," said Richard Kuprewicz, a safety consultant in Redmond, Wash. "I have not run across this in all my years. I hope they are outliers" (Jaxon Van Derbeken, San Francisco Chronicle, March 13). -- PK