The state of Missouri and federal government are at odds over the amount charged for pipeline violation fines. (Source: Shutterstock)
A regulatory disagreement led to the state of Missouri losing control over more than 1.5 million miles of natural gas pipelines, according to a Feb. 20 report in the Missouri Independent.
The fines the state charged for violations were too low, according to the federal government. Missouri’s current fines for pipeline violations can be anywhere between $20,000 and $200,000. The federal government charges between $272,000 and $2.7 million.
The federal Pipeline and Hazardous Materials Safety Administration notified the state in early January that its fine schedule was too low. Missouri, however, can only raise its fines through legislation, according to the report, and the federal government took control at the end of January.
Several lawmakers over the past few years have attempted to bring the state’s fines into compliance but were unsuccessful.
A rule to raise the penalties to compliance is included in the legislature’s overall utility regulation bill, which is unlikely to pass before the end of summer, according to the report.
Recommended Reading
Summit Acquires Moonrise Midstream Assets to Alleviate D-J Constraints
2025-03-10 - A Summit Midstream Corp. (SMC) subsidiary will acquire Moonrise Midstream from Fundare Resources Co. in a cash-and-stock deal valued at $90 million.
Plains All American Adds Crude Midstream Assets in Midland Basin
2025-05-09 - Plains All American purchased midstream assets in Wyoming, the Permian Basin and alleviated NGL bottlenecks in Canada.
Voyager Midstream Closes on Panola Pipeline Interest Deal
2025-03-19 - Pearl Energy Investments portfolio company Voyager Midstream Holdings has closed on its deal with Phillips 66 for its non-op interest in the Panola Pipeline.
Riley Permian Buys Northwest Shelf E&P Silverback II for $142MM
2025-05-08 - Riley Exploration Permian Inc. is adding Northwest Shelf assets from EnCap-backed Silverback Exploration II. Riley is also cutting capex and focusing on preserving inventory amid weak oil prices.
Devon Sells Matterhorn Express Pipeline Stake for $375MM
2025-05-06 - Devon Energy will sell its 12.5% stake in the Matterhorn Express following a report that I Squared Capital was interested in buying a majority stake in the pipeline.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.