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(1) conduct a study of

(A) the risks associated with the production, transportation, and storage of LNG;
(B) the risks associated with the production, transportation, and storage of
liquified petroleum gas;

(C) the methods of assuring adequate financial responsibility for those engaged in
any such activity; and

(2) prepare and transmit to each House of the Congress a report on the results of such study, together with the recommendations of the Secretary for such legislative or administrative action as he considers appropriate.

(b) (1) Whenever the Secretary has reason to believe that any operator of an LNG facility is not maintaining adequate insurance or otherwise does not have adequate financial responsibility with respect to such facilities, he may issue and serve upon such operator notice thereof, together with a statement of the amount of the financial responsibility that the Secretary would consider adequate.

(2) Any person issued notice under paragraph (1) shall have a right to hearing on the record in accordance with section 554 of title 5, United States Code, to be held not later than 30 days after notice under paragraph (1), at which such person has the right to show cause as to why an order should not be issued by the Secretary requiring such person to demonstrate and maintain financial responsibility at or above the amount indicated in the notice under paragraph (1).

(3) After an opportunity for hearing under paragraph (2), the Secretary may, if he determines it is justified in the public interest, order the person issued notice of such hearing to demonstrate and maintain financial responsibility at or above an amount determined appropriate by the Secretary, taking into account any information, data, and views presented in such hearing.

(4) (A) Any person aggrieved by an order issued under paragraph (3) may seek
judicial review of such order only by filing a petition for review in the appropriate court
of appeals of the United States within 60 days after such order is issued.

(B) Upon receipt of notice of the filing of such petition, the Secretary shall file in
the court the record in the proceeding, as provided in section 2112 of title 28, United
States Code. Upon such filing, the court may affirm, modify, remand, or set aside the
order of the Secretary, and may enforce the order to the extent that such order is
affirmed and issue such writs as are ancillary to its jurisdiction or are necessary in its
judgment to prevent injury to the public pendente lite. The findings of the Secretary as
to the facts, if supported by substantial evidence, shall be conclusive.

(C) The judgment and decree of the court shall be final, except that such judgment and decree shall be subject to review by the Supreme Court upon certiorari, as provided in section 1254 of title 28, United States Code.

(c) For purposes of subsection (b) of this section, financial responsibility may be maintained by any one of, or a combination of, the following methods acceptable to the Secretary:

(1) evidence of insurance,

(2) surety bonds,

(3) qualification as a self-insurer, or

(4) other evidence of financial responsibility.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Judicial Review

Hearing.

Judicial

review.

Review by

Supreme

Court.

Sec. 8.

(a) Any person who is or will be adversely affected or aggrieved by any regulation issued under this Act, or any order with respect to an application for a waiver under section 3(d), may at any time prior to the sixtieth day after such regulation or order is issued file a petition for a judicial review with the United States Court of Appeals for the District of Columbia or for the circuit wherein such petitioner is located or has his principal place of business. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary or other officer designated by him for that purpose.

(b) Upon the filing of the petition referred to in subsection (a), the court shall have jurisdiction to review the regulation or order in accordance with chapter 7 of title 5 of the United States Code and to grant appropriate relief as provided in such chapter.

(c) The judgment of the court affirming or setting aside, in whole or in part, any such regulation or order of the Secretary shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28 of the United States Code.

(d) Any action instituted under this section shall survive, not withstanding any change in the person occupying the office of Secretary or any vacancy in such office.

80 Stat. 392.
5 USC 701-706.

62 Stat. 928.

52 Stat. 824; 56 Stat. 83;

61 Stat. 459.

(e) The remedies provided for in this section shall be in addition to and not in substitution for any other remedies provided by law.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Cooperation with Federal Energy Regulatory Commission and State Commissions Sec. 9. Whenever the establishment of a standard or action upon application for waiver under the provisions of this Act, would affect continuity of any gas services, the Secretary shall consult with and advise the Federal Energy Regulatory Commission or State commission having jurisdiction over the affected pipeline facility before establishing the standard or acting on the waiver application and shall defer the effective date until the Federal Energy Regulatory Commission or any such commission has had reasonable opportunity to grant the authorizations it deems necessary. In any proceedings under section 3 or section 7 of the Natural Gas Act (15 U.S.C. 717f) for authority to import natural gas or to establish, construct, operate, or extend pipeline facilities which are or will be subject to Federal or other applicable safety standards, any applicant shall certify that it will design, install, inspect, test, construct, operate, replace, and maintain the pipeline facilities in accordance with Federal and other applicable safety standards and plans for maintenance and inspection. Such certification shall be binding and conclusive upon the Department of Energy and the Commission unless the relevant enforcement agency has timely advised the Commission in writing that the applicant has violated safety standards established pursuant to this Act.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Compliance

Sec. 10.

(a) Each person who engages in the transportation of gas or who owns or operates pipeline facilities shall

(1) at all times after the date any applicable safety standard established under this Act takes effect comply with the requirements of such standard; and

(2) prepare and maintain a plan of inspection and maintenance required by section 13 and comply with such plan;

(3) permit access to or copying of records, and make reports or provide information, and permit entry or inspection, as required under section 14.

(b) (1) The Secretary may issue orders directing compliance with this Act or any regulation issued under this Act. Any such order shall clearly set forth the particular actions required of the person to whom the order is issued.

(2) The district courts of the United States shall have jurisdiction, upon petition by the Attorney General, to enforce any such order by appropriate means.

(c) Nothing in this Act shall affect the common law or statutory tort liability of any person.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Penalties

49 USC 1679a.

Ante, p. 999.
Supra.

Sec. 11.

(a) (1) Any person who is determined by the Secretary to have violated any provisions of section 10(a) or any regulation or order issued under this Act, including any order issued under sections 10(b) and 12(b), shall be liable to the United States for a civil penalty of not more than $1,000 for each violation for each day that violation persists, except that the maximum civil penalty shall not exceed $200,000 for any related series of violations.

(2) Any person who is determined by the Secretary to have violated any standard or order under section 6 or 7(b) shall be subject to a civil penalty of not to exceed $50,000, which penalty shall be in addition to any other penalties to which such person may be subject under this subsection.

(3) The amount of the penalty shall be assessed by the Secretary by written notice. In determining the amount of the penalty, the Secretary shall consider the nature, circumstances, and gravity of the violation and, with respect to the person found to have committed the violation, the degree of culpability, any history of prior violations, the effect on ability to continue to do business, any good faith in attempting to achieve compliance, ability to pay the penalty, and such other matters as justice may require.

(b) A civil penalty assessed under subsection (a) may be recovered in an action brought by the Attorney General on behalf of the United States in the appropriate district court of the United States or, prior to referral to the Attorney General, it may be compromised by the

Secretary. The amount of the penalty, when finally determined (or agreed upon in compromise), may be deducted from any sums owed by the United States to the person charged. All penalties collected under this subsection shall be deposited in the Treasury of the United States as miscellaneous receipts.

(c) (1) Any person who willfully and knowingly violates section 10(a) or a regulation or order issued under this Act, including any order issued under sections (10)b and 12(b), shall, upon conviction, be subject, for each offense, to a fine of not more than $25,000, imprisonment for a term not to exceed 5 years, or both.

(2) Any person who willfully and knowingly injures or destroys, or attempts to injure or destroy, any interstate transmission facility shall, upon conviction, be subject, for each offense, to a fine of not more than $25,000, imprisonment for a term not to exceed 15 years, or both.

(d) Nothing in this Act shall be construed to authorize the imposition of penalties for the violation of any regulation and the violation of any order under section 10(b) or 12(b) if both violations are based on the same act.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Ante, p. 992.

Specific Relief

Sec. 12.

(a) (1) The Attorney General, at the request of the Secretary, may bring an action in an appropriate district court of the United States for equitable relief to redress or restrain a violation by any person of a provision of this Act or a regulation issued under this Act. Such district courts shall have jurisdiction to determine such actions and may grant such relief as is necessary or appropriate, including mandatory or prohibitive injunctive relief, interim equitable relief, and punitive damages.

(2) In any proceeding for criminal contempt for violation of a mandatory or prohibitive injunction issued under this subsection, which violation also constitutes a violation of this Act, trial shall be by the court or, upon demand of the accused, by a jury. Such trial shall be conducted in accordance with the practice and procedure applicable in the case of proceedings subject to the provisions of rule 42(b) of the Federal Rules of Criminal Procedure.

(b) (1) If the Secretary finds, after reasonable notice and an opportunity for hearing, that
any pipeline facility is hazardous to life or property, he shall, by order, require the person
operating the facility to take necessary corrective action. Such corrective action may include
suspended or restricted use of the facility, physical inspection, testing, repair, replacement,
or other action, as appropriate.

(2) The Secretary may find a pipeline facility to be hazardous under paragraph (1)—
(A) if under the facts and circumstances he determines the particular facility is
hazardous to life or property, or

(B) if the pipeline facility or a component thereof has been constructed or operated
with any equipment, material, or technique which he determines is hazardous to life or
property, unless the operator involved demonstrates to the satisfaction of the Secretary
that under the particular facts and circumstances involved such equipment, material,
or technique is not hazardous to life or property.

(3) In making a determination under paragraph (2), the Secretary shall consider, if relevant

(A) the characteristics of the pipe and other equipment used in the pipeline facility involved, including its age, manufacturer, physical properties (including its resistance to corrosion and deterioration), and the method of its manufacture, construction, or assembly;

(B) the nature of the materials transported by such facility (including their corrosive and deteriorative qualities), the sequence in which such materials are transported, and the pressure required for such transportation;

(C) the aspects of the areas in which the pipeline facility is located, in particular the climatic and geologic conditions (including soil characteristics) associated with such areas, and the population density and population and growth patterns of such areas; (D) any recommendation of the National Transportation Safety Board issued in connection with any investigation conducted by the Board under other provisions of law; and

(E) such other factors as the Secretary may consider appropriate.

(4) The district courts of the United States shall have jurisdiction, upon petition by the Attorney General, to enforce orders issued under this subsection by appropriate means.

(5) The Secretary may waive the requirements for notice and hearing under this subsection and provide for expeditious issuance of an order under this subsection in any case in which he determines that the failure to do so would result in the likelihood of serious harm

49 USC 1679b.

Trial by jury.

28 USC app.

Hazardous facilities,

corrective

action.

Hazardous facilities, determinations.

Plans, filing with State agency.

Consideration factors.

49 USC 1681.

Recordkeeping and reporting requirements.

Inspection

and examina

tion of records and properties.

Accident

reports,

availability for judicial proceedings and to public.

Trade secret, confidentiality.

to life or property. However, the Secretary shall include in such an order an opportunity for hearing as soon as practicable after issuance of an order.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Inspection and Maintenance Plans

Sec. 13. Each person who engages in the transportation of gas or who owns or operates intrastate pipeline transportation facilities shall prepare, maintain at such office or offices of that person as the Secretary determines appropriate, and carry out a written current plan for inspection and maintenance of each facility used in such transportation and owned or operated by such person, and any changes in such plan, in accordance with regulations prescribed by the Secretary or appropriate State agency. The Secretary may, by regulation, also require persons who engage in the transportation of gas or who own or operate pipeline facilities subject to the provisions of this Act to file such plans for approval. If at any time the agency with responsibility for enforcement of compliance with the standards established under this Act finds that such plan is inadequate to achieve safe operation, such agency shall, after notice and opportunity for a hearing, require such plan to be revised. The plan required by the agency shall be practicable and designed to meet the need for pipeline safety. Such plans shall be made available to the Secretary or the appropriate State agency upon request pursuant to section 14. In determining the adequacy of any such plan, such agency shall consider

(1) relevant available pipeline safety data;

(2) whether the plan is appropriate for the particular type of pipeline transportation; (3) the reasonableness of the plan; and

(4) the extent to which such plan will contribute to public safety.

(As amended by P.L. 94-477, 90 Stat. 2073, October 11, 1976; and P.L. 96-129, 93 Stat. 989, November 30, 1979)

Sec. 14.

Powers and Duties of the Secretary

(a) The Secretary may, to the extent necessary to carry out his responsibilities under this Act, conduct investigations, make reports, issue subpoenas, conduct hearings, require the production of relevant documents and records, take depositions, and conduct, directly or, by contract, or otherwise, research, testing, development, demonstration, and training activities; however, before the Secretary may exercise authority under this section to require testing of portions of pipeline facilities subject to the provisions of this Act which have been involved in or affected by an accident, he shall make every effort to negotiate a mutually acceptable plan with the owner of such facilities and, where appropriate, the National Transportation Safety Board for performing such testing.

(b) Each person who engages in the transportation of gas or who owns or operates pipeline facilities shall establish and maintain such records, make such reports, and provide such information as the Secretary may reasonably require, and shall submit such reports and shall make such records and information available as the Secretary may request, to enable him to determine whether such person has acted or is acting in compliance with this Act and the standards or orders issued under this Act.

(c) Officers, employees, or agents authorized by the Secretary, upon presenting appropriate credentials to the person in charge, are authorized to enter upon, inspect, and examine, at reasonable times and in a reasonable manner, the records and properties of persons to the extent such records and properties are relevant to determining whether such persons have acted or are acting in compliance with this Act and the standards or orders issued under this Act.

(d) Accident reports made by any officer, employee, or agent of the Department of Transportation shall be available for use in any civil, criminal, or other judicial proceeding arising out of such accident. Any such officer, employee, or agent may be required to testify in such proceedings as to the facts developed in such investigations. Any such report shall be made available to the public in a manner which need not identify individuals. All reports on research projects, demonstration projects, and other related activities shall be public information. (e) All information reported to or otherwise obtained by the Secretary or his representative pursuant to subsection (a), (b), or (c) which information contains or relates to a trade secret referred to in section 1905 of title 18 of the United States Code shall be considered confidential for the purpose of that section, except that such information may be disclosed to other officers or employees concerned with carrying out this Act or when relevant in any proceeding under this Act. Nothing in this section shall authorize the withholding of information by the Secretary or any officer, employee, or agent under his control, from the duly authorized committees of the Congress.

(As amended by P.L. 96-129, 93 Stat. 989, November 30, 1979)

Sec. 15.

Natural Gas Safety Cooperation and Coordination

(a) Upon request, the Secretary shall furnish to the Federal Energy Regulatory Commission, or any appropriate State agency, any information he has concerning the safety of any materials, operations, devices, or processes relating to the transportation of gas or the operation of pipeline facilities.

(b) The Secretary is authorized to advise, assist, and cooperate with other Federal departments and agencies and State and other interested public and private agencies and persons, in the planning and development of

(1) Federal safety standards, and

(2) methods for inspecting and testing to determine compliance with Federal safety standards.

(c) The Secretary is authorized to consult with, and make recommendations to, other Federal departments and agencies, State and local governments, and other public and private agencies or persons, for the purpose of developing and encouraging activities, including the enactment of legislation, to assist in the implementation of this Act and to improve State and local pipeline safety programs.

(d) The Secretary may as a matter of right intervene or otherwise participate in any proceeding before the Federal Energy Regulatory Commission, or any State agency, which involves safety requirements relating to LNG facilities. The Secretary shall comply with rules of procedure of general applicability governing the timing of intervention or participation in such proceeding or activity and, upon intervening or participating therein, shall comply with rules of procedure of general applicability governing the conduct thereof.

(As amended by P.L. 92-401, 86 Stat. 616, August 22, 1972; and P.L. 96-129, 93 Stat. 989, November 30, 1979)

Research and development. Contracts, etc.

Safety of materials, etc.

Cooperation

with other

agencies.

Annual Report

Sec. 16.

(a) The Secretary shall prepare and submit to the President for transmittal to the Congress on June 15 of each year a comprehensive report on the administration of this Act for the preceding calendar year. Such report shall include

(1) a thorough compilation of the leak repairs, accidents, and casualties occurring in such year with a statement of cause whenever investigated and determined by the National Transportation Safety Board;

(2) a list of Federal gas pipeline safety standards established or in effect in such year with identification of standards newly established during such year;

year;

(3) a summary of the reasons for each waiver granted under section 3(d) during such

(4) an evaluation of the degree of observance of applicable safety standards for the transportation of gas and pipeline facilities including a list of enforcement actions, and compromises of alleged violations by location and company name;

(5) a summary of outstanding problems confronting the administration of this Act, in order of priority;

(6) an analysis and evaluation of research activities, including the policy implications thereof, completed as a result of Government and private sponsorship and technological progress for safety achieved during such year;

(7) a list, with a brief statement of the issues, of completed or pending judicial actions under the Act;

(8) the extent to which technical information was disseminated to the scientific community and consumer-oriented information was made available to the public; (9) a compilation of—

(A) certifications filed by State agencies (including municipalities) under section 5(a) which were in effect during the preceding calendar year, and

(B) certifications filed under section 5(a) which were rejected by the Secretary during the preceding calendar year, together with a summary of the reasons for each such rejection; and

(10) a compilation of

(A) agreements entered into with State agencies (including municipalities) under section 5(b) which were in effect during the preceding calendar year, and

(B) agreements entered into under section 5(b) which were terminated by the Secretary during the preceding calendar year, together with a summary of the reasons for each such termination.

Report to
President and
Congress.

Contents.

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