RCP Inc.

Search Open Menu

In This Issue

  1. DOT Pipeline Compliance Workshop – August 17-18, 2005
  2. Need to update your Public Awareness Program?
  3. Pipeline Operator Public Awareness Program Final rule; correction
  4. Integrity Management Services
  5. Office of Pipeline Safety OPA-90 Rule; correction
  6. 2005 Offshore Hurricane Readiness and Recovery Conference
  7. RCP Services Spotlight – Underwater Inspection Procedures and Interval Risk Modeling
  8. B31Q Update
  9. O&M Manual Up-To-Date?
  10. Critical Energy Infrastructure Information
  11. Need to Update Your Current Operator Qualification Program?
  12. Use of Polyamide-11 Plastic Pipe in Gas Pipelines
  13. Integrity Management Plan Up-to-Date?
  14. Proposed Reissuance of NPDES Permit Number AKG280000
  15. Are Your Response Plans Current?
  16. New PHMSA Deputy Administrator
  17. Exclusion Zones for Marine LNG Spills: Reopening of comment period
  18. FERC Guidance on PIM Cost Treatment for Gas Pipelines
  19. Public Meeting on Applying, Interpreting, and Evaluating Data from ILI Devices

FERC Guidance on PIM Cost Treatment for Gas Pipelines

On June 30, 2005, the Federal Energy Regulatory Commission provided guidance on how jurisdictional natural gas companies should account for costs associated with implementation of new pipeline integrity management requirements. OPS estimates the cost of compliance with the IM Regulations for jurisdictional and non-jurisdictional entities will be $4.7 billion over 20 years. The Commission found that the costs to: (1) prepare a plan to implement the program; (2) identify high consequence areas; (3) develop and maintain a record keeping system; and (4) inspect affected pipeline segments should be expensed. The Commission further clarified that costs of modifying pipelines to permit in-line inspections, such as installing pig launchers and receivers, should be capitalized consistent with the Commission’s existing rules for plant additions. Similarly, certain costs associated with developing or enhancing computer software or costs incurred to add or replace other items of plant also should be capitalized. However, minor items of property replaced as part of a remedial action should continue to be expensed. The order makes this guidance effective January 1, 2006, and prospective in application. Amounts capitalized in periods prior to January 1, 2006, will be permitted to remain as recorded. For more information, see the Commission’s website  at www.ferc.gov, docket No. AI05-1-000.