5/14/2007

Why small operators need CP consultants

For some customers, staying on top of changing regulations in CP can be confusing and difficult. Pipeline operators who aren’t aware of the changes, and don’t communicate with industry standard setters, are likely to get burned.

But knowing when regulations change isn't easy. Often, new regulations come to our attention simply by talking with industry peers at conferences and meetings. These conversations open up good dialogue of how to approach CP in regard to changing regulations.

Case in point: I recently received a call from the owner of a small pipeline company in East Texas. He was concerned with the new PHMSA/state regulations, and how they would affect integrity-related issues. He was also trying to get a handle on state mandates, and how they synchronize with existing federal regulations.

It turned out he needed more than a good CP program to comply with these new regulations. He also needed a CP consultant who knew what regulations were about to be approved, so he could maximize his investment.

I advised him to find a consultant with the credentials to perform the integrity-related tasks new regulations require. Such credentials should include a wide range of services, professional affiliations such as NACE, and insurance that includes errors and omissions policies.

But here was my most important tip for the business owner: Find a consultant capable of handling the needs of smaller pipeline companies. To me, this meant a consultant who understands daily challenges small entities face, such as weighing business expansion with the necessity of industry standard compliance.

It might mean more upfront costs for small operators, but it will save headaches on the back-end. And that's a balance any business owner would be happy to strike.

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