The Texas Railroad Commission has proposed rules that would require all gas system operators, including municipal operators, to develop and implement a risk-based program for the removal or replacement of certain distribution facilities. (Replacement of steel service lines is the primary goal of the rule.)

Each operator will be required to develop a risk-based program in conjunction with the recently adopted U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration's regulations regarding integrity management. Each operator will use the risk-based program to manage any risks identified through the risk-based analysis by developing a replacement program to remove those integrity-related risks from its system.

This proposed rule could be extremely costly for cities that operate a gas utility. Detailed information about the proposed rule is available here.

The Railroad Commission is accepting comments on the proposed rules until noon on Tuesday, October 12, 2010.

TML member cities may use the material herein for any purpose.
No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the
Texas Municipal League.

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