HB1140: relative to financial responsibility for gas transmission pipelines.

HB 1140 - AS INTRODUCED

2016 SESSION

16-2304

06/10

HOUSE BILL 1140

AN ACT relative to financial responsibility for gas transmission pipelines.

SPONSORS: Rep. Estevez, Hills. 37; Rep. Flanagan, Hills. 26; Rep. J. Belanger, Hills. 27; Rep. Coffey, Hills. 25; Rep. Edelblut, Hills. 38; Rep. Abramson, Rock. 20; Rep. Shepardson, Ches. 10; Rep. Emerson, Ches. 11; Rep. L. Ober, Hills. 37; Rep. McConnell, Ches. 12; Sen. Avard, Dist 12; Sen. Sanborn, Dist 9

COMMITTEE: Science, Technology and Energy

ANALYSIS

This bill requires owners of gas transmission pipelines to procure and maintain insurance or provide a bond against any loss resulting from failure or malfunction of a pipeline.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

16-2304

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Sixteen

AN ACT relative to financial responsibility for gas transmission pipelines.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Energy Facility Evaluation; Financial Responsibility for Gas Transmission Pipelines. Amend RSA 162-H by inserting after section 10-b the following new section:

162-H:10-c Financial Responsibility for Gas Transmission Pipelines.

I. Every owner of a gas transmission pipeline or lateral shall procure and maintain insurance or provide a bond against loss resulting from failure or malfunction of each pipeline, lateral, or appurtenance. Proof of such insurance or bond shall be filed annually with the public utilities commission. In the event of change of ownership, proof of insurance or bond shall be filed with the public utilities commission at the time of ownership change. Each pipeline or lateral shall be considered separately for purposes of this section.

II. If a pipeline or lateral is abandoned or otherwise unused, the owner of record shall continue to maintain the insurance or bond.

III. The amount of insurance or bond shall be determined by the segment with the largest diameter and highest pressure. The formula for calculating the insurance or bond required for each pipeline shall be the diameter of the pipeline in inches x the design pressure of the pipeline in pounds per square inch x $2,000 (to be periodically adjusted for inflation by the public utilities commission).

IV. If any incident draws upon such bond, operation of the pipeline or lateral shall be suspended until such time as the bond is restored to the full required value. If losses from an accident or incident are greater than coverage of the insurance or bond, operation of the pipeline or lateral shall be suspended until all damages have been paid in full and full insurance or bond coverage has been restored.

V. No property owner whose property includes a pipeline easement shall be liable for any damages caused by an operating or abandoned pipeline or lateral.

2 Effective Date. This act shall take effect 60 days after its passage.