Here’s a solid Wichita Eagle report that shows the holes in a regulatory system—ones that could have deadly consequences.
What I particularly like about Dion Lefler’s story is that it is anticipatory reporting on the regulatory system—before a failure reveals holes in oversight. That’s the most important kind of regulation story.
A year and a half ago, a federal judge overturned Kansas regulations on storing natural gas underground, ruling that they violated the commerce clause since the gas is ultimately transported across state lines.
So Kansas ends up helpless to protect its own people, despite having its people reside atop pits that hold 12 billion cubic feet of explosive gas. The Eagle puts it well:
The state can’t inspect them.
The federal government has chosen not to.
As a result, thousands of Kansans live on and around uninspected gas-storage fields that dwarf the system that caused the Hutchinson disaster.
That’s followed by this from the company that sued Kansas to stop its inspections:
The gas company that sued Kansas says it’s not a concern, that internal inspections and policies are enough to ensure public safety.
In other words: Duck and cover. Self-regulation hasn’t worked out so well throughout history.
Indeed, the stepped-up regulations were passed in the wake of a 2001 explosion in Hutchinson that killed two, destroyed several businesses, and sent geysers of natural gas popping up around town, which brought the National Guard in for evacuations. A pipe had busted, leaking 140 million cubic feet of gas from an underground storage facility.
So why is the federal government letting gas companies self-regulate their massive underground storage facilities?
What you call "solid" I call incomplete and full of holes. The problem with Lefler’s story is it leaves the reader with a strong opinion based on relatively few facts. "Something" just has to be done about this looming menace, but no one knows exactly what or why aside from a generic concern.
Some very pertinent questions Lefler should have asked:
1. Would the Kansas Gas Storage Statutes as written prevented what happened in Hutchinson and if so why?
2. Since the Yaggy storage field in Hutchinson was in a comparatively shallow abandoned salt mine and the other eleven underground gas storage facilities are located in comparatively deep depleted gas fields are the hazards associated with the remaining storage sites similar to Yaggy and if so how?
3. What are the anticipated risks to life and property associate with the eleven other storage fields? How do these risks compare with Yaggy?
4. What is the safety record of the gas pipeline network in Kansas, and in what direction is this trending?
5. What is the safety record of the gas pipeline network in the nation as a whole, in what direction is this trending, and how does it compare with Kansas?
6. How has regulation impacted the safety record of the existing pipeline network?
Without knowing this, you know, the basic relevant facts surrounding the story, I find it hard to beleive that anyone could read this and not come away with an impression based on anything other than emotion. It makes for a good Hollywood script, but poor journalism.
In other words: Duck and cover. Self-regulation hasn’t worked out so well throughout history.
I am not going to comment on the financial side of this sentence as I have no expertise, but surely you must have some data to support this statement as it applies to this story? So tell me, has the safety record of the natural gas pipeline industry in the United States gotten better, worse or stayed the same over the past 30 years? surely, you must know, because I couldnt imagine you making such a strong definitive statement like that unless you had the relevant facts at hand. So please humor me and tell me how you came to this conlcusion.
#1 Posted by Mike H, CJR on Wed 5 Oct 2011 at 10:45 PM
"surely you must have some data to support this statement as it applies to this story?"
I'm sorry you missed the point. The point is that _people_ who are running companies have a sorry record on self-regulation. It doesn't matter if it people running financial, extractive, transportation, manufacturing or any other kind of business.
#2 Posted by Ron R, CJR on Thu 6 Oct 2011 at 01:29 PM
It doesn't matter if it people running financial, extractive, transportation, manufacturing or any other kind of business
On the contrary, it maters extremely what kind of business one runs. Extractive, transportation, and manufacturing industries have much higher personal protective liability associated with them than any other industry …. Just look at their insurance premiums. Tort can have a powerful effect on how a business operates.
So back to one of my original points: has the safety record of the natural gas pipeline industry in the United States gotten better, worse or stayed the same over the past 30 years?.
I am sure you must know the answer too Ron, because I couldn’t imagine an intelligent liberal coming to such a decidedly adamant decision based on anecdote and emotion.
#3 Posted by Mike H, CJR on Thu 6 Oct 2011 at 02:23 PM