CenterPoint Energy 2014 Annual Report Download - page 19

Midstream Investments - Safety and Health Regulation
Certain of Enable’
s facilities are subject to pipeline safety regulations. PHMSA regulates safety requirements in the design, construction,
operation and maintenance of jurisdictional natural gas and hazardous liquid pipeline facilities. All natural gas transmission facilities, such as
Enable’s interstate natural gas pipelines, are subject to PHMSA’
s pipeline safety regulations, but natural gas gathering pipelines are subject to
the pipeline safety regulations only to the extent they are classified as regulated gathering pipelines. In addition, several NGL pipeline facilities
and crude oil pipeline facilities are regulated as hazardous liquids pipelines. Pursuant to various federal statutes, including the Natural Gas
Pipeline Safety Act of 1968 (NGPSA) the DOT, through PHMSA, regulates pipeline safety and integrity. NGL and crude oil pipelines are
subject to regulation by PHMSA under the Hazardous Liquid Pipeline Safety Act which requires PHMSA to develop, prescribe, and enforce
minimum federal safety standards for the transportation of hazardous liquids by pipeline, and comparable state statutes with respect to design,
installation, testing, construction, operation, replacement and management of pipeline facilities. PHMSA has developed regulations that require
natural gas pipeline operators to implement integrity management programs, including more frequent inspections and other measures to ensure
pipeline safety in high consequence areas (HCAs). Although many of Enable’
s pipeline facilities fall within a class that is currently not subject to
these integrity management requirements, Enable may incur significant costs and liabilities associated with repair, remediation, preventive or
mitigating measures associated with its non-
exempt pipelines. Additionally, should Enable fail to comply with DOT or comparable state
regulations, it could be subject to penalties and fines. If future DOT pipeline integrity management regulations were to require that Enable
expand its integrity managements program to currently unregulated pipelines, including gathering lines, its costs associated with compliance may
have a material effect on its operations.
ENVIRONMENTAL MATTERS
Our operations and the operations of Enable are subject to stringent and complex laws and regulations pertaining to the environment. As an
owner or operator of natural gas distribution systems, electric transmission and distribution systems, and the facilities that support these systems,
we must comply with these laws and regulations at the federal, state and local levels. These laws and regulations can restrict or impact our
business activities in many ways, such as:
In order to comply with these requirements, we may need to spend substantial amounts and devote other resources from time to time to,
among other activities:
Failure to comply with these laws and regulations may trigger a variety of administrative, civil and criminal enforcement measures,
including the assessment of monetary penalties, the imposition of remedial actions and the issuance of orders enjoining future operations. Certain
environmental statutes impose strict, joint and several liability for costs required to clean up and restore sites where hazardous substances have
been stored, disposed or released. Moreover, it is not uncommon for neighboring landowners and other third parties to file claims for personal
injury and property damage allegedly caused by the release of hazardous substances or other waste products into the environment.
13
•
restricting the way we can handle or dispose of wastes;
•
limiting or prohibiting construction activities in sensitive areas such as wetlands, coastal regions or areas inhabited by endangered
species;
•
requiring remedial action to mitigate environmental conditions caused by our operations or attributable to former operations;
•
enjoining the operations of facilities with permits issued pursuant to such environmental laws and regulations; and
•
impacting the demand for our services by directly or indirectly affecting the use or price of natural gas.
•
construct or acquire new facilities and equipment;
•
acquire permits for facility operations;
•
modify, upgrade or replace existing and proposed equipment; and
•
clean or decommission waste disposal areas, fuel storage and management facilities and other locations and facilities.