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PHMSA Increases the Civil Penalty Amounts for Pipeline Safety Violations

PHMSA Adjusts Maximum and Minimum Civil Penalties for Violations of Federal Pipeline Safety Regulations

Under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Federal agencies are required to adjust their civil monetary penalties effective January 15, 2017, and annually thereafter, to account for changes in inflation.

PHMSA has issued a Final Rule to revise its regulations and increase the maximum civil penalty amount of Federal pipeline safety law. The maximum civil penalty for a single violation is now $209,002 for each day the violation continues, or $2,090,022 for a related series of violations of Federal pipeline safety laws. The effective date of this final rule is April 27, 2017. PHMSA may also impose civil monetary penalties not to exceed $1,214 for a violation concerning employee protections or $76,352 for a violation concerning Liquefied Natural Gas operations. See the latest updates from PHMSA at their website.