http://michiganmessenger.com/40319/oil-spill-raises-fam... Oil spill raises familiar questions about oversight
Activists question safety waiver grants, revolving door between industry and regulators
By ANDREW RESTUCCIA 7/30/10 10:20 AM
This week, a fracture in an Enbridge Energy pipeline released nearly a million gallons of oil into a tributary of the Kalamazoo River in Battle Creek, Mich. The accident is drawing attention to the obscure Department of Transportation agency responsible for the regulation and oversight of the country’s 2.3 million miles of natural gas and hazardous liquid pipelines: the Pipeline and Hazardous Materials Safety Administration, or PHMSA.
A review of PHMSA records shows familiar ties between industry and regulators.
A former legal counsel for the company responsible for the spill currently heads the oversight agency. In the last year, PHMSA has granted more than a dozen safety waivers to the companies it regulates. These waivers, industry observers say, have saved companies millions of dollars, but might have put people and property at risk.
Already, activists are drawing parallels between PHMSA and the Minerals Management Service, which had regulatory oversight over the Deepwater Horizon rig that spilled millions of barrels into the Gulf of Mexico. Interior Secretary Ken Salazar has disbanded MMS, arguing the agency had too cozy a relationship with the industry it regulated. And Congress is the midst of debate on broad oil spill response legislation that, in part, restructures MMS and puts restrictions on the agency’s so-called “revolving door.”
Questions About Quarterman’s Work History
Cynthia Quarterman, PHMSA administrator, worked as legal counsel for Enbridge Energy, the owner of the pipeline that burst in Michigan, during her time as a partner at the major law firm Steptoe and Johnson. Quarterman also headed MMS from 1995 to 1999. President Obama nominated Quarterman, who served on the president’s transition team at the Department of Energy, to serve as head of PHMSA last year. On his first day in the White House, Obama signed an executive order with a “revolving door ban,” barring appointees from regulating companies where they worked. The White House did not return calls for comment.
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