Due to a spill from an unregulated pipeline in 1993 the legislature granted the Department of Conservation's Division of Oil, Gas, and Geothermal Resources (Division) jurisdiction over oil and gas production pipelines. As a result new pipeline regulations were promulgated in 1994 and 1998. The first regulations were broad construction standards and the second were a two tiered risk based system that included construction, maintenance, and testing requirements. Part of the regulation adoption process included statistics on oil spill frequency and clean-up cost estimates of between $15 and $25 million. Combining these statistics with a case study that demonstrates the potential reduction in the spill frequency clearly shows the benefit of initiating an integrated pipeline management plan. This is especially important in urban areas and environmentally sensitive areas when considering the potential for penalties imposed by any one of a number of regulatory agencies.

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