The Trouble With New Rules For Natural Gas Processors

Law360, New York (November 19, 2013, 3:36 PM EST) -- The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration ("PHMSA") has recently expressed its intent to apply 49 CFR part 195 regulations to midstream natural gas liquids ("NGL") processing facilities traditionally regulated by the Occupational Safety and Health Administration and the U.S. Environmental Protection Agency. The potential expansion of part 195 would obligate companies to reassess physical assets and create new compliance programs and may cause confusion regarding what specific regulatory rules or standards will be applied to midstream facilities.

Factual Background

In Aug. 2011, a major fractionation facility operator asked PHMSA for an opinion regarding its jurisdiction over an...

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