H.R. 3948 — Offshore Pipeline Safety Act

This section directs the Secretary of the Interior, acting through the Director of the Bureau of Safety and Environmental Enforcement, to issue final regulations, not later than 18 months after enactment, relating to oil and gas pipelines and pipeline rights-of-way on the Outer Continental Shelf (referencing 72 Fed. Reg. 56,442 (Oct. 3, 2007)). The regulations require owners of subject pipelines (1) to provide for third-party internal and external inspections no less frequently than every two years, unless the Director determines an inspection is not required, and (2) to equip pipelines with a leak detection system or device that provides continuous volumetric comparison between product input and output, with alarms and sensitivity to detect leaks as quickly as possible.

This section directs the directors of the Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM) to jointly conduct a study evaluating the environmental benefits and risks of decommissioning oil and gas pipelines in place on the outer continental shelf (OCS) versus removing them—including an assessment of previously decommissioned-in-place pipelines to identify high-risk ones for safety, environmental harm, obstructions, or interference with OCS uses, plus recommendations for using revenues from new annual pipeline fees—and to submit a report with findings and legislative recommendations to the House Committee on Natural Resources and the Senate Committee on Energy and Natural Resources within 18 months of enactment. This section requires BSEE, when reviewing decommissioning applications, to consider whether a pipeline constitutes a hazard to navigation or commercial and recreational fishing, unduly interferes with other OCS uses, or has adverse environmental effects. This section requires BSEE to continually monitor the condition and location of all decommissioned pipelines left in place and to maintain related records. This section directs BSEE to issue regulations within 180 days of enactment assessing an annual fee on owners of offshore oil and gas pipelines to fund decommissioning or removal if an owner files for bankruptcy, with the fee set at no less than $10,000 per mile for pipelines in waters 500 feet or greater and $1,000 per mile for those in shallower waters.

This section requires the Bureau of Safety and Environmental Enforcement (BSEE) to either remove from the ocean or properly decommission any identified exposed segment of an active or decommissioned offshore pipeline to ensure it poses no threat. For active pipelines, BSEE must re-secure to the sea floor any exposed or shifted segment.

This section directs the Bureau of Safety and Environmental Enforcement (BSEE) to complete a study on the risks to the environment from chemical products used in oil and gas operations, including umbilical lines, seeking input from chemical suppliers and the oil and gas industry. BSEE must submit a report to Congress on the study's findings, determinations, and any legislative recommendations not later than two years after the date of enactment.