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Environmental considerations and  risk assessment













          ENVIRONMENTAL                  CONSIDERATIONS

          AND      RISK     ASSESSMENT             RELATED TO

                      PIPELINE         OPERATIONS






         IN COMMON with many     industries, environmental protection  and pres-
      ervation has not been a key factor in the historic development of the pipeline
      industry. This situation can be attributed to two factors:

           The development  of the nation's hydrocarbon  reserves historically has
              been  a national priority for the  United States - and as a result,  the
              pipeline  industry has been allowed  to progress unfettered by some
              of the rules and regulations imposed on other developing industries.
            For the  most  part,  the  pipeline  industry has had a very  good  safety
              record  as well as a reputation as a clean and efficient  industry.

         However, during the last 20 years, there has been a significant change in
      the  pipeline industry's  view  of the  environment  and in the  environmental
      regulators'  awareness  of the  pipeline industry. The past two  decades  have
      witnessed  the proliferation of numerous environmental regulations, some of
      which  have had  major  impacts  on  the financial well-being and  day-to-day
      operations  of many pipeline  operators.
         The major environmental regulations that may affect pipeline  operations
      fall  into five broad  areas: (1) occupational  protection  statutes; (2)  laws on
      transporting  chemicals  and  hazardous  substances;  (3)  chemical  use  and
      assessment laws; (4) environmental protection statutes; and (5) laws regulat-
      ing  clean-up  of unintentional  disposal  of chemicals.  Table  1 details  these
      broad  areas of environmental regulations and the specific laws within  these
      areas.


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