Bracewell : Many Await Updates to Existing CO₂ Pipeline Safety Regulations
Lack of clarity over federal rules puts projects in limbo .
CATHERINE LITTLE ANNE COOK
Catherine Little and Anne Cook are partners in the Washington , D . C ., office of the Bracewell law firm , where they advise oil and gas pipeline , associated storage and LNG clients across the U . S . on traditional and renewable energy , transportation and safety-related legal matters at federal , state and local levels .
CO2 pipelines are expected to play a key role in reducing greenhouse gas emissions and achieving net-zero emissions by 2050 in the U . S .
Carbon capture and storage system ( CCS ) projects , many of which involved transportation by pipeline , are intended to capture and remove CO2 from the atmosphere and transport it to permanent underground storage or conversion sites . Certain of these projects are eligible for grants from the Department of Energy ( DOE ), which is tasked with providing “ future growth grants ” to fund CO2 projects such as CCS .
A critical path for success of CO2 projects depends , in part , on regulation by the Department of Transportation ’ s ( DOT ) Pipeline and Hazardous Materials Safety Administration , referred to as PHMSA . While pipelines are considered the most efficient and safest mode to transport CO2 , the sufficiency of existing CO2 pipeline safety regulations has come under scrutiny in light of a 2020 CO2 pipeline incident in Satartia , Miss .
As CCS projects progress , third parties have called for updated CO2 regulations . Meanwhile , states and local governments have considered — and some have passed — moratoriums on CO2 pipeline projects until updated regulations are in place or local regulations are enacted to address what they see as gaps in the federal regulatory scheme .
It is a common misconception , however , that PHMSA does not regulate any CO2 pipelines , or that those regulations are not comprehensive . PHMSA has long exercised statutory and regulatory authority over the design , construction and operation of thousands of miles of CO2 pipelines . Further , PHMSA announced a rulemaking in 2022 to both update CO2 regulations and establish regulations for gaseous CO2 pipelines .
The agency has been slow , however , to rebut public misconceptions about
~ 5 . 2K
miles of regulated CO2 pipelines in U . S .
regulation of CO2 pipelines and to issue a proposed rule . Such delays potentially hinder CCS projects and the ability of the U . S . to meet its climate goals .
Existing PHMSA Regulations Congress authorizes PHMSA to regulate the transportation of gas and liquid by pipeline , including both gaseous and liquid CO2 , to protect against risks to life and property . Approximately 5,200 miles of regulated pipelines currently transport liquid ( supercritical ) CO2 in the U . S ., which have been regulated since 1991 . Current regulations for supercritical CO2 pipelines govern design , construction , operation , maintenance and emergency response planning , and many establish supplemental or different design , construction , operations and maintenance obligations specific to the unique risk profile presented by CO2 , which is colorless , odorless , heavier than air and nonflammable .
PHMSA regularly monitors compliance of CO2 pipeline operators through routine inspections of pipeline facilities and construction projects , as well as accident response and investigations . Through enforcement , PHMSA requires remedial actions and assesses civil penalties , including a record proposed civil penalty associated with the Satartia incident .
As it relates to gaseous CO2 , PHMSA has asserted that it maintains “ safety authority ” with the ability to investigate and address “ any ” safety issue through safety orders , even though the agency has not yet established regulations for gaseous CO2 . PHMSA ’ s authority to regulate pipelines does not , however , extend to pipeline siting , routing or permanent storage .
Pending CO2 Pipeline Rulemaking and State Laws
PHMSA has been working on its “ priority ” CO2 rulemaking to regulate gaseous CO2 and revise existing supercritical CO2
86 Oil and Gas Investor | January 2025