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Environmental considerations and risk assessment



         While all of the  laws listed in Table 1 potentially may affect  the  day-to-day
      operations  of a  pipeline,  only a few  have  the  proven  potential  to  have  a
      significant  operational  or  financial  impact  on  companies  with  pipeline
      systems. The following paragraphs describe these most significant laws, and
      summarize their specific impacts on the pipeline industry.



         NATIONAL        ENVIRONMENTAL             POLICY     ACT
            (NEPA)



         Synopsis:  Signed into law on  1st January,  1970, NEPA represents  the first
      attempt by Congress to define an environmental policy for the United States.
      The  goal  of  NEPA  was  to  develop  practicable  means  to  conduct  federal
      activities that will promote  the general welfare  of, and be in harmony with,
      the environment.
         The most significant provision  of NEPA is contained  in Section  102(2)(c).
      This provision requires that a detailed environmental impact statement (EIS)
      be  prepared  for every major  federal action that may significantly  affect  the
      quality  of  the  environment.  In  particular,  the  following  issues  must  be
      addressed:


            the environmental impact of the proposed action;
            any adverse environmental effects which cannot be avoided should the
              proposed action be implemented;
           alternatives to the proposed action;
            the  relationship  between  local  short-term  activities  and  long-term
              enhancement of productivity of man's environment; and
            any irreversible and irretrievable commitments of resources that would
              occur should the proposed action  be  implemented.

         It is important to note that NEPA applies to federal agencies only, and that
      the EISs must be prepared  only by the responsible  federal agency. However,
      state and local agencies and private parties may assist or be required to assist
      the  responsible  federal agency. The final analysis of the  data, as well as the
      conclusions  reached,  must be  the  responsibility of the  appropriate  federal
      agency.
         The  major  impact  of  NEPA  is not  found within  the  procedural  require-
      ments for federal agencies, but rather in the fact that its passage has resulted
      in  a new  attitude and  awareness  toward  environmental protection.  NEPA

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