PG&E pushed controversial pipeline inspection plan

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more PG&E pushed controversial pipeline inspection plan Eric Nalder,Jaxon Van Derbeken, Chronicle Staff Writers

San Francisco Chronicle December 23, 2010 04:00 AM Copyright San Francisco Chronicle. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Thursday, December 23, 2010

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ShareComments  Georgia (default) Verdana Times New Roman ArialFont | Size: 0 Lea Suzuki / The Chronicle

Flowers decorate a fence Friday along Claremont Drive in San Bruno, across the street from lots where homes used to be.

ImagesFlowers decorate a fence Friday along Claremont Drive in ...Kirk Johnson, a vice president for transmission pipelines...A worker in San Bruno stands next to the site where a nat...View Larger Images More NewsGoing's good for most holiday travelers, for now 12.23.10Rome embassy blasts wound 2; anarchists suspected 12.23.10War rhetoric rises between North and South Korea 12.23.10Ground zero workers celebrate political victory 12.23.10

Pacific Gas and Electric Co. led the successful lobbying campaign to persuade federal regulators writing natural-gas safety rules seven years ago to endorse a pipe inspection method many experts see as deficient - the technique used on the pipeline that later failed catastrophically in San Bruno.

A PG&E executive was one of the main industry proponents of the then-new testing regimen, interviews with people who were involved in the rule-writing process and a Chronicle review of documents show. The federal government's decision to allow the method saved PG&E millions of dollars because the utility didn't have to upgrade its system to accommodate other inspection technology.

The method PG&E used in San Bruno is called direct assessment, which involves records research, surface-level electronic testing and digging holes to spot-check small portions of buried pipelines. When the utility used it on the San Bruno transmission line in November 2009, it found no problems.

Ten months later, the line ruptured, causing an explosion and fire that killed eight people and destroyed 37 homes. The National Transportation Safety Board is investigating the blast and has not arrived at a cause, but said last week that it was looking into whether a weld on a lateral seam of the pipe had failed.

Direct assessment is not designed to check for weak welds - it is most effective at detecting corrosion on the outside of pipes - and operators are supposed to document that a line is free of such problems before they rely solely on the technique.

PG&E has defended the use of direct assessment on the San Bruno line, but also conceded that until the disaster, it was unaware the pipeline had the type of seam weld that may have failed.

The utility has used direct assessment elsewhere on the 51.5-mile pipe running from Milpitas to South San Francisco, as well as on much of the rest of its pipeline system.

"I think all the direct assessment techniques work very well," said Kirk Johnson, PG&E vice president in charge of transmission pipelines.

Writing the rules

The lobbying campaign to allow direct assessment stemmed from a law Congress passed in 2002 requiring regular gas pipeline inspections in populated areas. Former congressional staffer Rick Kessler said lawmakers had accepted the concept of direct assessment so the industry would buy into the law's other requirements. But he said it was the "least favored" of three test methods listed in the statute.

Final inspection rules were left to regulation writers at the federal Office of Pipeline Safety, said Kessler, now vice president of the Pipeline Safety Trust, an advocacy group.

That rule-making process, said group executive director Carl Weimer, is where "the details get laid." And for PG&E, the initial details were not encouraging.

In January 2003, the Office of Pipeline Safety published proposed rules that favored the use of two inspection methods - hydrostatic testing, in which water is run through a gas pipe at high pressure to see if it leaks, and ultrasonic assessments, in which torpedo-shaped devices known as smart pigs are run through a line.

Both methods are far more likely than direct assessment to detect non-corrosion problems that can weaken a pipe, such as a bad weld. But both posed problems for PG&E.

Many of its gas-transmission lines have curves, sharp angles and constrictive valves that make it impossible to accommodate smart pigs, and retrofitting the system would take years and cost the utility millions of dollars.

Hydrostatic tests are expensive, require pipeline shutdowns and involve other complications, such as disposing of the wastewater.

Persuading federal regulators to let PG&E and other pipeline operators use direct assessment with as few restrictions as possible was Alan Eastman's job.

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Related Topics: Pacific Gas and Electric Company, Pipeline transport, Natural gas, Rulemaking, National Transportation Safety Board, Advocacy group, Federal government of the United States, United States Congress, San Bruno, California, South San Francisco, California

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