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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1989 

                        CHAPTER 244-H.F.No. 907 
           An act relating to public safety; providing for 
          authority to regulate pipelines; imposing penalties; 
          amending Minnesota Statutes 1988, sections 116I.01, 
          subdivision 3; 116I.05; 216D.01, subdivisions 9, 10, 
          and by adding a subdivision; 299F.56, subdivisions 5 
          and 6a; 299F.57; 299F.59, subdivision 1; 299F.60; 
          299F.61; 299F.62; 299F.63; 299F.631; 299F.641; 
          299J.01; 299J.03, subdivision 2; 299J.04; 299J.05; 
          299J.06, subdivision 2; 299J.08; 299J.10; 299J.11; 
          299J.12; and 299J.16; proposing coding for new law in 
          Minnesota Statutes, chapter 216D; repealing Minnesota 
          Statutes 1988, section 299J.09. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1988, section 116I.01, 
subdivision 3, is amended to read: 
    Subd. 3.  "Pipeline" means pipe a pipeline located in this 
state which is used to transport natural or synthetic gas at a 
pressure of more than 90 pounds per square inch, or to transport 
crude petroleum or petroleum fuels or oil or their derivatives, 
coal, anhydrous ammonia or any mineral slurry to a distribution 
center or storage facility which is located within or outside of 
this state.  "Pipeline" does not include a pipeline owned or 
operated by a natural gas public utility as defined in section 
216B.02, subdivision 4.  
    Sec. 2.  Minnesota Statutes 1988, section 116I.05, is 
amended to read: 
    116I.05 [INTERSTATE GAS PIPELINES; FEDERAL EMINENT DOMAIN; 
CONDITIONS NOT APPLICABLE.] 
    Any person that proposes to construct or operate an 
interstate natural gas pipeline and that has power to acquire an 
easement or right-of-way agreement for that pipeline by an 
action in eminent domain under the authority of the federal 
Natural Gas Act, United States Code, title 15, chapter 15B, 
shall not be required to comply with the provisions of sections 
116I.02 116I.015 to 116I.04 as a condition of acquiring the 
easement or, right-of-way pursuant to that action, or route.  
    Sec. 3.  Minnesota Statutes 1988, section 216D.01, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [COMMISSIONER.] "Commissioner" means the 
commissioner of public safety. 
    Sec. 4.  Minnesota Statutes 1988, section 216D.01, 
subdivision 9, is amended to read: 
    Subd. 9.  [OPERATOR.] "Operator" means a person who owns or 
operates an underground facility.  A person is not considered an 
operator solely because the person is an owner or tenant of real 
property where underground facilities are located if the 
underground facilities are used exclusively to furnish services 
or commodities on that property, unless the person is the state, 
a state agency, or a local governmental unit. 
    Sec. 5.  Minnesota Statutes 1988, section 216D.01, 
subdivision 10, is amended to read: 
    Subd. 10.  [PERSON.] "Person" means the state, a public 
agency, a local governmental unit, an individual, corporation, 
partnership, association, or other business or public entity or 
a trustee, receiver, assignee, or personal representative of any 
of them. 
    Sec. 6.  [216D.08] [CIVIL PENALTIES.] 
     Subdivision 1.  [PENALTY.] A person who is engaged in 
excavation for remuneration or an operator other than an 
operator subject to section 11 who violates sections 216D.01 to 
216D.07 is subject to a civil penalty to be imposed by the 
commissioner not to exceed $500 for each violation per day of 
violation.  An operator subject to section 11 who violates 
sections 216D.01 to 216D.07 is subject to a civil penalty to be 
imposed under section 299F.60.  
    Subd. 2.  [SETTLEMENT.] The commissioner may negotiate a 
compromise settlement of a civil penalty.  In determining the 
amount of the penalty, or the amount of the compromise 
settlement, the commissioner shall consider the appropriateness 
of the penalty to the size of the business of the person 
charged, the gravity of the violation, and the good faith of the 
person charged in attempting to achieve compliance, after 
notification of a violation.  The contested case and judicial 
review provisions of chapter 14 apply to the orders of the 
commissioner imposing a penalty under sections 216D.01 to 
216D.07.  The amount of the penalty, when finally determined, 
may be deducted from sums owing by the state of Minnesota to the 
person charged. 
    Subd. 3.  [CREDITED TO PIPELINE SAFETY ACCOUNT.] Penalties 
collected under this section must be deposited in the state 
treasury and credited to the pipeline safety account to be 
applied to the reduction of expenses or costs assessed by the 
commissioner against persons regulated under this chapter. 
     Subd. 4.  [RULES.] The commissioner shall adopt rules 
establishing reasonable guidelines for imposing penalties.  The 
rules must provide for notice that a penalty is assessed and may 
exempt activities from penalties unless the excavator or 
operator as defined in this section has evidenced a course of 
action in disregard of this chapter. 
    Sec. 7.  [216D.09] [INJUNCTIVE RELIEF.] 
    Subdivision 1.  [JURISDICTION.] The district courts of the 
state of Minnesota have jurisdiction, subject to the provisions 
of the statutes and the rules of practice and procedure of the 
state of Minnesota relative to civil actions in the district 
courts, to restrain violations of sections 216D.01 to 216D.07, 
on petition by the attorney general on behalf of the state of 
Minnesota.  When practicable, the commissioner shall give notice 
to a person against whom an action for injunctive relief is 
contemplated and afford the person an opportunity to present 
views and, except in the case of a knowing and willful 
violation, shall afford the person reasonable opportunity to 
achieve compliance.  However, the failure to give the notice and 
afford an opportunity to present views does not preclude the 
granting of appropriate relief. 
    Subd. 2.  [VENUE.] Actions under this section must be 
brought in district court in the district where the defendant's 
principal place of business in the state is located, and process 
in these cases may be served in any other district in the state 
of Minnesota where the defendant may be found or in which the 
defendant is an inhabitant or transacts business. 
    Sec. 8.  Minnesota Statutes 1988, section 299F.56, 
subdivision 5, is amended to read: 
    Subd. 5.  "Transportation of gas" means the gathering, 
transmission, or distribution of gas or hazardous liquid by 
pipeline or its storage; except that it shall not include any 
such transportation of gas or hazardous liquid which is subject 
to the jurisdiction of the Federal Power Energy Regulatory 
Commission under the Natural Gas Act of the United States and 
the federal Hazardous Liquid Pipeline Safety Act, or the 
gathering of gas or hazardous liquid in those rural locations 
which lie outside the limits of any incorporated or 
unincorporated city, town, or any other designated residential 
or commercial area such as a subdivision, a business or shopping 
center, a community development or any similar populated area 
which the state fire marshal office of pipeline safety may 
define as a nonrural area.  
    Sec. 9.  Minnesota Statutes 1988, section 299F.56, 
subdivision 6a, is amended to read: 
    Subd. 6a.  "Hazardous liquid pipeline facilities" includes, 
without limitation, new and existing pipe, rights-of-way, and 
any equipment, facility, or building used or intended for use in 
the transportation of hazardous liquids including transportation 
by gravity or at a stress level of 20 percent or less of the 
specified minimum yield strength of the pipe. 
    Sec. 10.  Minnesota Statutes 1988, section 299F.57, is 
amended to read: 
    299F.57 [MINIMUM SAFETY STANDARDS; GAS PIPELINES.] 
    Subdivision 1.  The commissioner shall, by order, may by 
rule establish minimum additional or more stringent safety 
standards for the transportation of gas and gas pipeline 
facilities.  Such standards may apply to the design, 
installation, inspection, testing, construction, extension, 
operation, replacement, and maintenance of gas pipeline 
facilities.  These standards may include a requirement that 
individuals responsible for the operation and maintenance of gas 
pipeline facilities be tested for qualifications and certified 
to perform these functions.  The standards may not prescribe the 
location or routing of a pipeline facility.  Standards affecting 
the design, installation, construction, initial inspection, and 
initial testing shall not be applicable to pipeline facilities 
in existence on the date such standards are adopted.  Such 
safety standards shall be practicable and designed to meet the 
need for pipeline safety.  In prescribing such standards, the 
commissioner shall consider: 
    (a) relevant available pipeline safety data; 
    (b) whether such standards are appropriate for the 
particular type of pipeline transportation; 
    (c) the reasonableness of any proposed standards; 
    (d) the extent to which any such standards will contribute 
to public safety; and 
    (e) the existing standards established by the Secretary of 
Transportation of the United States pursuant to the federal 
Natural Gas Pipeline Safety Act.  
    Provided, however, that the commissioner shall not be 
empowered to adopt any such standards as to the transportation 
of gas or to pipeline facilities which are subject to the 
jurisdiction of the Federal Energy Regulatory Commission under 
the Natural Gas Act of the United States, except as provided in 
sections 299J.01 to 299J.17. 
    Subd. 1a.  [ADOPTION OF FEDERAL STANDARDS.] The federal 
safety standards adopted as Code of Federal Regulations, title 
49, parts 191, 192, and 193, and standards that may be adopted 
that amend parts 191, 192, and 193, are adopted as minimum 
safety standards. 
    Subd. 2.  Any standards prescribed under this section, and 
amendments thereto, shall become effective 30 days after the 
date of issuance of such standards unless the commissioner, for 
good cause recited, determines an earlier or later effective 
date is required as the result of the period reasonably 
necessary for compliance.  
    Subd. 3.  The rulemaking, contested case and judicial 
review provisions of chapter 14, shall apply to all rules and 
orders establishing, amending, revoking, or waiving compliance 
with, any standard established under sections 299F.56 to 299F.64 
299F.641 or any penalty imposed under sections 299F.56 
to 299F.64 299F.641.  The commissioner shall afford interested 
persons an opportunity to participate fully in the establishment 
of such safety standards through submission of written data, 
views or arguments, with opportunity to present oral testimony 
and argument.  
    Subd. 4.  The commissioner, on finding a particular 
facility to be hazardous to life or property, shall be empowered 
to require the person operating such facility to take such steps 
necessary to remove such hazards.  
    Subd. 5.  Upon application by any person engaged in the 
transportation of gas or the operation of pipeline facilities, 
the commissioner may, after notice and opportunity for hearing 
and under such terms and conditions and to such extent as the 
commissioner deems appropriate, waive in whole or in part 
compliance with any standards established under sections 299F.56 
to 299F.64, on determining that a waiver of compliance with such 
standard is not inconsistent with gas pipeline safety.  The 
commissioner shall state the reasons for any such waiver. 
    Sec. 11.  Minnesota Statutes 1988, section 299F.59, 
subdivision 1, is amended to read: 
    Subdivision 1.  Each person who engages in the 
transportation of gas or hazardous liquids or who owns or 
operates gas or hazardous liquid pipeline facilities shall: 
    (a) (1) at all times after the date any applicable safety 
standard established under sections 299F.56 to 299F.641 takes 
effect comply with the requirements of such standard; 
    (b) (2) file and comply with a plan of inspection for 
operation and maintenance required by sections 299F.56 to 
299F.641; and 
    (c) (3) permit access to or copying of records, and make 
reports or provide information, and permit entry or inspection, 
as required by sections 299F.56 to 299F.641 and the standards 
adopted or orders issued under sections 299F.56 to 299F.641; and 
    (4) comply with sections 216D.01 to 216D.07, the one call 
excavation notice system.  
    Sec. 12.  Minnesota Statutes 1988, section 299F.60, is 
amended to read: 
    299F.60 [CIVIL PENALTIES.] 
    Subdivision 1.  Any person who violates any provision of 
sections 299F.56 to 299F.64 299F.641, or any rule issued 
thereunder, shall be subject to a civil penalty to be imposed by 
the commissioner not to exceed $10,000 for each such violation 
for each day that such violation persists, except that the 
maximum civil penalty shall not exceed $200,000 $500,000 for any 
related series of violations.  
    Subd. 2.  The commissioner may negotiate a compromise 
settlement of a civil penalty.  In determining the amount of 
such penalty, or the amount of the compromise settlement, the 
commissioner shall consider the appropriateness of such penalty 
to the size of the business of the person charged, the gravity 
of the violation, and the good faith of the person charged in 
attempting to achieve compliance, after notification of a 
violation.  The contested case and judicial review provisions of 
chapter 14 shall apply to all orders of the commissioner 
imposing any penalty under for violations of sections 299F.56 to 
299F.64 299F.641 or under any rule promulgated thereunder.  The 
amount of such penalty, when finally determined, may be deducted 
from any sums owing by the state of Minnesota to the person 
charged.  
    Subd. 3.  No person shall be subjected to civil penalties 
under both sections 299F.56 to 299F.64 299F.641 and under Public 
Law Number 90-481, Statutes at Large, volume 82, page 720, 90th 
Congress, S. 1166, approved August 12, 1968 the federal Natural 
Gas Pipeline Safety Act or the federal Hazardous Liquid Pipeline 
Safety Act, for conduct which may give rise to a violation of 
both acts.  
    Subd. 4.  All penalties collected under sections 299F.56 to 
299F.64 299F.641 shall be paid over to the state treasurer for 
deposit in the state treasury to the credit of the pipeline 
safety account. 
    Subd. 5.  [RULES.] The commissioner shall adopt rules 
establishing reasonable guidelines for imposing penalties.  The 
rules must treat separately and distinguish between violations 
that relate to hazardous liquid pipelines, gas pipelines, and 
other pipelines; must provide for notice that a penalty is 
assessed; and may exempt activities from penalties unless the 
person has evidenced a course of action in disregard of this 
chapter. 
    Sec. 13.  Minnesota Statutes 1988, section 299F.61, is 
amended to read: 
    299F.61 [INJUNCTIVE RELIEF.] 
    Subdivision 1.  The district courts of the state of 
Minnesota shall have jurisdiction, subject to the provisions of 
the statutes and the rules of practice and procedure of the 
state of Minnesota relative to civil actions in the district 
courts, to restrain violations of sections 299F.56 to 299F.64 
299F.641, including the restraint of transportation of gas or 
hazardous liquid or the operation of a pipeline facility, or to 
enforce standards established hereunder under sections 299F.56 
to 299F.641 upon petition by the attorney general on behalf of 
the state of Minnesota.  Whenever practicable, the commissioner 
shall give notice to any person against whom an action for 
injunctive relief is contemplated and afford the person an 
opportunity to present views, and, except in the case of a 
knowing and willful violation, shall afford the person 
reasonable opportunity to achieve compliance.  However, the 
failure to give such notice and afford such opportunity shall 
not preclude the granting of appropriate relief.  
    Subd. 2.  Actions under sections 299F.56 to 299F.64 
299F.641 shall be brought in the district in the state of 
Minnesota wherein the defendant's principal place of business is 
located, and process in such cases may be served in any other 
district in the state of Minnesota where the defendant may be 
found or of which the defendant is an inhabitant or transacts 
business.  
    Sec. 14.  Minnesota Statutes 1988, section 299F.62, is 
amended to read: 
    299F.62 [PLAN FOR INSPECTION OPERATION AND MAINTENANCE; GAS 
PIPELINES.] 
    Each person who engages in the transportation of gas or who 
owns or operates gas pipeline facilities subject to sections 
299F.56 to 299F.64 299F.641 shall prepare, maintain, carry out, 
and file with the commissioner a plan for inspection operation 
and maintenance of each such pipeline facility owned or operated 
by such person, and any changes in such plan, in accordance with 
the rules prescribed by the commissioner.  On finding that such 
plan is inadequate to achieve safe operation, the commissioner 
shall, after notice and opportunity for a hearing, require such 
plan to be revised.  The plan required by the commissioner shall 
be practicable and designed to meet the need for pipeline 
safety.  In determining the adequacy of any such plan, the 
commissioner shall consider the following: 
    (a) relevant available pipeline safety data; 
    (b) whether the plan is appropriate for the particular type 
of pipeline transportation; 
    (c) the reasonableness of the plan; and 
    (d) the extent to which such plan will contribute to public 
safety.  
    Sec. 15.  Minnesota Statutes 1988, section 299F.63, is 
amended to read: 
    299F.63 [RECORDS AND REPORTS; INSPECTIONS; TRADE SECRETS.] 
    Subdivision 1.  (a) The commissioner may, to the extent 
necessary to carry out the enforcement responsibilities of 
sections 299F.56 to 299F.641, conduct investigations, make 
reports, issue subpoenas, require the production of relevant 
documents and records, take depositions, and conduct research, 
testing, development, demonstration, and training activities. 
    (b) The commissioner may require each person who engages in 
the transportation of gas or hazardous liquid or who owns or 
operates gas pipeline facilities shall to establish and maintain 
such records, and to make such reports, and provide such 
information as to the commissioner may reasonably require.  The 
records and other information must be made available as the 
commissioner orders to enable the commissioner to determine 
whether such the person has acted or is acting in compliance 
with sections 299F.56 to 299F.64 299F.641 and the standards 
established adopted or orders issued under sections 299F.56 
to 299F.64 299F.641.  Each such person shall, upon request of an 
officer, employee, or agent authorized by the commissioner, 
permit such officer, employee, or agent to inspect books, 
papers, records and documents relevant to determining 
    (c) Officers, employees, and agents authorized by the 
commissioner, on presenting appropriate credentials to the 
person in charge, may enter upon, inspect, and examine, at 
reasonable times and in a reasonable manner, the records and 
properties of a person subject to regulation under sections 
299F.56 to 299F.641 to the extent the records and properties are 
relevant to determine whether such the person has acted or is 
acting in compliance with those sections 299F.56 to 299F.64 and 
the standards established pursuant to adopted under those 
sections 299F.56 to 299F.64.  For purposes of enforcement of 
sections 299F.56 to 299F.64, officers, employees, or agents 
authorized by the commissioner, upon presenting appropriate 
credentials to the individual in charge, are authorized to enter 
upon, at reasonable times, gas pipeline facilities, and to 
inspect, at reasonable times and within reasonable limits and in 
a reasonable manner, such facilities.  Each such inspection 
shall be commenced and completed with reasonable promptness.  
    (d) An accident report made by an officer, employee, or 
agent of the office of pipeline safety is available for use in a 
civil, criminal, or other judicial proceeding arising out of the 
accident.  The officer, employee, or agent may be required to 
testify in the proceedings as to the facts developed in the 
investigation.  A report made available to the public need not 
identify individuals.  Reports on research projects, 
demonstration projects, and other related activities are public 
information. 
    (e) All information reported to or otherwise obtained by 
the commissioner under sections 299F.56 to 299F.641 that 
contains or relates to a trade secret referred to in United 
States Code, title 18, section 1905, is confidential for the 
purpose of that section, and is private or nonpublic data as 
defined in section 13.02.  However, the information may be 
disclosed to other officers or employees authorized to enforce 
sections 299F.56 to 299F.641.  Nothing in this section 
authorizes the withholding of information by the commissioner 
from a duly authorized committee of the legislature or the 
United States Congress. 
    Subd. 2.  The commissioner must establish and implement an 
inspection program to enforce the standards adopted under 
section 299F.57.  The program must be established and 
implemented in a manner that complies with requirements for 
state certification under United States Code, title 49, section 
1674.  In the course of the exercise of duties and 
responsibilities under sections 299F.56 to 299F.64 299F.641, the 
commissioner shall wherever practicable employ a practice of 
spot checking and issuance of certificates of compliance, with 
respect to persons subject to sections 299F.56 to 299F.64, to 
limit costs of enforcement of the safety standards established 
pursuant to sections 299F.56 to 299F.64 299F.641.  
    Subd. 3.  All information reported to or otherwise obtained 
by the commissioner or a representative, which contains or 
relates to a trade secret, as referred to in section 1905 of 
title 18 of the United States Code, or otherwise constitutes a 
trade secret under law, shall be considered confidential for the 
purpose of such laws, and is private or nonpublic data as 
defined in section 13.02.  This data may be disclosed to other 
officers or employees concerned with carrying out sections 
299F.56 to 299F.64 or when relevant in any proceeding under 
sections 299F.56 to 299F.64.  
    Sec. 16.  Minnesota Statutes 1988, section 299F.631, is 
amended to read: 
     299F.631 [INSPECTION FEE.] 
     Subdivision 1.  [ASSESSMENT AND DEPOSIT OF FEE.] From each 
pipeline operator subject to the intrastate pipeline inspection 
authority under sections 299F.56 to 299F.641, the commissioner 
shall assess and collect an inspection fee in an amount 
calculated under subdivisions 2 and 4.  The assessment of the 
inspection fee must be made no fewer than 30 days after the end 
of the quarter.  If an operator does not pay the fee within 60 
days after the assessment was mailed, the commissioner may 
impose a delinquency fee of ten percent of the quarterly 
inspection fee and interest at the rate of 15 percent per year 
on the portion of the fee not paid.  Fees collected under this 
section must be credited to the pipeline safety account.  
     Subd. 2.  [CALCULATION OF FEE.] (a) For each quarter that 
an inspection fee is to be assessed, the commissioner shall 
calculate the total actual expenses and obligations incurred by 
the office of pipeline safety in implementing sections 299F.56 
to 299F.641.  The calculation must not include: 
     (1) expenses that will be reimbursed by the federal 
government; 
     (2) expenses attributable to follow-up inspections 
necessitated by the failure of a pipeline facility to comply 
with safety standards; 
     (3) expenses attributable to investigations of specific 
pipeline facilities; 
    (4) expenses attributable to inspections of newly 
constructed pipelines over 2,000 feet in length; 
    (5) expenses attributable to the inspection of facilities 
carrying liquefied natural gas, and hazardous liquids; and 
    (6) expenses attributable to the inspection of facilities 
carrying liquefied petroleum gas, until the commissioner adopts 
a rule providing for metered billing of these facilities; and 
    (7) expenses attributable to seeking and maintaining 
federal interstate agent status. 
    (b) The commissioner shall assess each pipeline operator 
for a pro rata share of the expenses and obligations calculated 
under paragraph (a), based on the number of meters in service on 
the preceding December 31. 
    (c) The expenses and obligations described in paragraph 
(a), clauses (2), (3), (4), and (5) must be directly charged to 
the appropriate pipeline operators on a quarterly basis.  The 
expenses and obligations described in paragraph (a), clause (6), 
must be directly charged to the appropriate pipeline operators 
on a quarterly basis until the commissioner adopts a rule 
providing for metered billing of facilities carrying liquefied 
petroleum gas. 
    Subd. 3.  [EMERGENCY RULES.] The commissioner may shall 
adopt emergency rules to implement this section. 
    Subd. 4.  [SUPPORT COSTS.] The commissioner shall calculate 
the general support costs of the office of pipeline safety for 
the preceding quarter, and add to the inspection fee calculated 
under subdivision 2 the share of those costs that is 
proportionate to the amount of time spent by the office in 
implementing sections 299F.56 to 299F.641 with respect to that 
type of pipeline operator facility. 
    Sec. 17.  Minnesota Statutes 1988, section 299F.641, is 
amended to read: 
    299F.641 [INTRASTATE HAZARDOUS LIQUID PIPELINES.] 
    Subdivision 1.  [JURISDICTION.] The commissioner has 
regulatory jurisdiction over the safety standards and practices 
of intrastate hazardous liquid pipeline facilities and the 
transportation of hazardous liquids associated with those 
facilities. 
    Subd. 2.  [FEDERAL STANDARDS ADOPTED.] The federal safety 
standards adopted as Code of Federal Regulations, title 49, part 
195, and standards that may be adopted that amend part 195, are 
adopted as minimum safety standards.  The commissioner may by 
rule adopt additional or more stringent safety standards for 
intrastate hazardous liquid pipeline facilities and the 
transportation of hazardous liquids associated with those 
facilities, if the state standards are compatible with the 
federal standards.  The standards may not prescribe the location 
or routing of a pipeline facility.  
    Subd. 3.  [ENFORCEMENT.] The commissioner must establish 
and implement an inspection program to enforce the standards 
adopted under subdivision 2.  The program must be established 
and implemented in a manner that fully complies with 
requirements for state certification under United States Code, 
title 49, section 2004. 
    Subd. 4.  [PROTECTION OF PIPELINE FACILITIES.] The 
commissioner must encourage and promote programs designed to 
prevent damage to hazardous liquid pipeline facilities as a 
consequence of demolition, excavation, tunneling, or 
construction activity. 
    Subd. 5.  [INVESTIGATIONS; RECORD KEEPING.] (a) The 
commissioner may, to the extent necessary to carry out the 
enforcement responsibilities of this section, conduct 
investigations, make reports, issue subpoenas, conduct hearings, 
require the production of relevant documents and records, take 
depositions, and conduct research, testing, development, 
demonstration, and training activities. 
    (b) The commissioner may require each person who engages in 
the transportation of hazardous liquids or who owns or operates 
pipeline facilities to establish and maintain records, and to 
make reports and provide information to the commissioner.  The 
records and other information must be made available as the 
commissioner orders to enable the commissioner to determine 
whether the person has acted or is acting in compliance with 
this section and the standards or orders adopted under this 
section. 
    (c) Officers, employees, or agents authorized by the 
commissioner, on presenting appropriate credentials to the 
person in charge, may enter upon, inspect, and examine, at 
reasonable times and in a reasonable manner, the records and 
properties of persons to the extent the records and properties 
are relevant to determine whether the persons have acted or are 
acting in compliance with this section and the standards adopted 
under this section. 
    (d) An accident report made by an officer, employee, or 
agent of the office of pipeline safety is available for use in 
any civil, criminal, or other judicial proceeding arising out of 
the accident.  The officer, employee, or agent may be required 
to testify in the proceedings as to the facts developed in the 
investigation.  A report made available to the public need not 
identify individuals.  All reports on research projects, 
demonstration projects, and other related activities are public 
information. 
    (e) All information reported to or obtained by the 
commissioner under this subdivision that contains or relates to 
a trade secret referred to in United States Code, title 18, 
section 1905, is confidential for the purpose of that section, 
except that the information may be disclosed to other officers 
or employees concerned with enforcing this section.  Nothing in 
this section authorizes the withholding of information by the 
commissioner from a duly authorized committee of the legislature.
    Subd. 5a.  [WAIVER.] On application of a person engaged in 
the transportation of hazardous liquid or the operation of 
hazardous liquid pipeline facilities, the commissioner may, 
after notice and opportunity for hearing and under terms and 
conditions and to the extent the commissioner considers 
appropriate, waive in whole or in part compliance with standards 
established under this section, on determining that a waiver of 
compliance with a standard is consistent with hazardous liquid 
pipeline safety.  The commissioner shall state the reason for a 
waiver. 
    Subd. 6.  [INSPECTION OPERATION AND MAINTENANCE PLAN.] (a) 
Each person who engages in the transportation of hazardous 
liquids or who owns or operates hazardous liquid pipeline 
facilities must prepare, maintain, and carry out a current 
written plan for inspection operation and maintenance of each 
facility used in that transportation and owned or operated by 
that person as prescribed by the commissioner.  The commissioner 
may, by regulation, also require persons who engage in the 
transportation of hazardous liquids or who own or operate 
pipeline facilities subject to this section to file the plans 
for approval.  A plan required by this subdivision must be 
practicable, designed to meet the need for pipeline safety, and 
available to the commissioner on request.  The plan must enhance 
the commissioner's ability to discover a condition that causes a 
significant change or restriction in the operation of the 
pipeline facilities or constitutes a hazard to life or property. 
     (b) If the commissioner finds that a plan required under 
this subdivision is inadequate to achieve safe operation of 
pipeline facilities, the commissioner may, after notice and 
opportunity for a hearing, require the plan to be revised.  In 
determining the adequacy of a plan filed under this section, the 
commissioner shall consider: 
     (1) relevant available pipeline safety data; 
     (2) whether the plan is appropriate for the particular type 
of pipeline transportation or facility; 
    (3) the reasonableness of the plan; and 
    (4) the extent to which the plan will contribute to public 
safety. 
    Subd. 7.  [ANNUAL CERTIFICATION REPORT.] The 
commissioner must file an annual certification report with the 
secretary of the federal Department of Transportation.  The 
report must include: 
    (1) the name and address of each person subject to the 
safety jurisdiction of the commissioner under this section; 
    (2) all accidents or incidents reported during the 
preceding 12 months by each person that involved personal injury 
requiring hospitalization, fatality, or property damage 
exceeding $5,000 (whether or not sustained by a person subject 
to the safety jurisdiction of the office), and all other 
significant accidents, together with a summary of the 
commissioner's investigation as to the cause and circumstances 
surrounding the accident or incident; 
    (3) the record maintenance, reporting, and inspection 
program carried out by the commissioner to enforce compliance 
with the federal safety standards, including a detailed 
description of the number of inspections made of pipeline 
facilities during the preceding 12 months; and 
    (4) other information as the commissioner or federal law or 
rule may require. 
    The report included with the first annual certification 
need not show information unavailable at that time. is 
authorized to make certifications and reports to the United 
States Secretary of Transportation as may be required from time 
to time under the federal Hazardous Liquid Pipeline Safety Act. 
    Subd. 8.  [CIVIL RELIEF.] The safety standards adopted 
under this section may be enforced as is provided for gas 
pipeline facilities under sections 299F.60 and 299F.61, and 
penalties collected must be paid to the commissioner for deposit 
in the state treasury and credit to the pipeline safety account. 
    Sec. 18.  Minnesota Statutes 1988, section 299J.01, is 
amended to read: 
    299J.01 [AUTHORITY OF OFFICE OF PIPELINE SAFETY.] 
    The commissioner of public safety shall, to the extent 
authorized by agreement with the United States Secretary of 
Transportation, act as agent for the United States Secretary of 
Transportation to implement the federal Hazardous Liquid 
Pipeline Safety Act, United States Code, title 49, sections 2001 
to 2014, the federal Natural Gas Pipeline Safety Act, United 
States Code, title 49, sections 1671 to 1686, and federal 
pipeline safety regulations with respect to interstate pipelines 
located within this state, as necessary to obtain annual federal 
certification.  The commissioner shall, to the extent authorized 
by federal law, regulate pipelines in the state as authorized by 
sections 299J.01 to 299J.17 and 299F.56 to 299F.64 299F.641.  
    Sec. 19.  Minnesota Statutes 1988, section 299J.03, 
subdivision 2, is amended to read: 
     Subd. 2.  [QUALIFICATIONS.] (a) The director of the office 
must be knowledgeable in the operation and safety aspects of 
pipelines.  
     (b) Inspectors must have scientific or technical training 
or experience that demonstrates in-depth knowledge of pipeline 
engineering technology and pipeline safety. 
     (c) Inspectors shall complete courses at the transportation 
safety institute and be certified by the institute as soon as 
possible following appointment. 
    (d) Inspectors shall meet the qualifications established by 
the federal government in order for the state to participate in 
the pipeline safety grant programs under the federal Natural Gas 
Pipeline Safety Act and the federal Hazardous Liquid Pipeline 
Safety Act. 
    Sec. 20.  Minnesota Statutes 1988, section 299J.04, is 
amended to read: 
    299J.04 [DUTIES OF THE OFFICE OF PIPELINE SAFETY.] 
    Subdivision 1.  [GENERAL DUTIES.] The commissioner shall: 
    (1) promote the use of the 911 emergency telephone system 
as an appropriate method for the public to notify emergency 
responders of an emergency release; 
    (2) provide training on a regular basis to all potentially 
affected local governmental units in pipeline incident 
contingency planning and emergency response by itself or in 
cooperation with pipeline operators, other state offices, or 
local governmental units; 
    (3) require local governmental units to work with pipeline 
owners to provide a program of continuing public education on 
the subject of pipeline operation and safety; 
    (4) monitor and gather information on the development of 
reliable pipeline technologies capable of detecting and 
geographically locating pipeline releases, use the information 
gathered in the development of rules as provided in this 
section, and report to the legislature every two years in the 
manner provided by section 3.195 on the activities of the office 
under this clause; 
    (5) enforce sections 216D.01 to 216D.09, as provided in 
sections 216D.08 and 216D.09; 
    (2) maintain a data base of all pipeline emergency releases 
, which must be based on annual reports from all pipeline 
operators; 
    (6) (3) inspect, as necessary, any record, map, or written 
procedure required by sections 299J.01 to 299J.17 to be kept by 
a pipeline operator concerning the reporting of emergency 
releases, and the design, construction, testing, or operation 
and maintenance of pipelines; and 
    (7) (4) adopt rules to implement sections 299J.01 to 
299J.17.  
    The rules adopted under clause (7) (4) must treat 
separately and distinguish between hazardous liquid and gas 
pipelines and must be compatible with federal laws and 
regulations. 
    Subd. 2.  [DELEGATED DUTIES.] The commissioner shall seek 
and accept federal designation of the office's pipeline 
inspectors as federal agents for the purposes of enforcement of 
the federal Hazardous Liquid Pipeline Safety Act, United States 
Code, title 49, sections 2001 to 2014, the federal Natural Gas 
Pipeline Safety Act, United States Code, title 49, sections 1671 
to 1686, and federal rules adopted to implement those acts.  The 
commissioner shall establish and submit to the United States 
Secretary of Transportation an inspection program that complies 
with requirements for delegated interstate agent inspection 
authority.  To the extent that federal delegation of interstate 
agent inspection authority permits, the inspection program for 
interstate pipelines must be the same as the inspection program 
for intrastate pipelines.  If the United States Secretary of 
Transportation delegates inspection authority to the state as 
provided in this subdivision, the commissioner, at a minimum, 
shall do the following to carry out the delegated federal 
authority:  
    (1) inspect pipelines periodically at times determined by 
rules of the commissioner as specified in the inspection 
program; 
    (2) collect inspection fees; and 
    (3) order and oversee the testing of pipelines as provided 
in rules adopted under this section authorized by federal law 
and regulations; and 
    (4) file reports with the United States Secretary of 
Transportation as required to maintain the delegated inspection 
authority.  
    Subd. 3.  [RULEMAKING CONTINGENT ON FEDERAL AUTHORITY.] (a) 
The commissioner shall consider adoption of rules on subjects in 
this subdivision if federal law authorizes the state 
regulation.  The rules must treat separately and distinguish 
between hazardous liquid and gas pipelines.  
    (b) The commissioner shall consider higher safety margin 
requirements for operating pressures on pipelines located in 
populated or environmentally sensitive areas. 
    (c) The commissioner shall consider having pipeline 
operators periodically submit comprehensive reports to the 
office on the condition of their pipelines, and requiring 
appropriate pipeline testing based on concerns identified in 
these reports.  The testing requirements must apply more 
strictly to pipelines in populated or environmentally sensitive 
areas. 
    (d) The commissioner shall consider methods for pipeline 
operators to improve their ability to rapidly locate and isolate 
releases.  The methods must include:  
    (1) remote control shutoff valves on all new pipelines, 
with the distance between the valves dependent on the type and 
density of development, the presence of environmentally 
sensitive areas, and the application of appropriate engineering 
standards; 
    (2) remotely monitored pressure gauges and flow meters 
installed at each pump station and remote valve location; 
    (3) specific emergency response procedures and training 
requirements for shutting down pumps; and 
    (4) use of reliable technology for detecting and 
geographically locating releases, and for shutting appropriate 
valves as rapidly as possible. 
    (e) The commissioner shall consider standards for the 
manufacture of pipe used in pipelines, pipeline construction, 
and pipeline operation.  Best available technology in pipe 
manufacture, pipeline construction, and pipeline reconstruction 
must be required and developed in consultation with the 
commissioner of labor and industry.  
    Subd. 4.  [RELATION TO OTHER LAW.] Rules adopted to 
implement sections 299J.01 to 299J.17 must be consistent with 
sections 299F.56 to 299F.64 to the extent that the rules deal 
with pipelines governed by those sections. 
     Sec. 21.  Minnesota Statutes 1988, section 299J.05, is 
amended to read:  
    299J.05 [PIPELINE SETBACK ORDINANCE.] 
    (a) The commissioner shall adopt, by December 31, 1990, a 
model ordinance under chapter 14 requiring a setback from 
pipelines in areas where residential or other development is 
allowed.  The model ordinance must apply only to new development 
and not to development that has occurred, or for which 
development permits have been issued, before the effective date 
of the ordinance. 
    (b) By August 1, 1989 1991, each statutory or home rule 
charter city, town, or county that has planning and zoning 
authority under sections 366.10 to 366.19, 394.21 to 394.37, or 
462.351 to 462.365, and in which a pipeline is located, shall 
adopt a pipeline setback ordinance that meets or exceeds the 
minimum standards of the model ordinance and is approved by the 
commissioner.  The model ordinance applies in a jurisdiction 
where the local governmental unit does not adopt a setback 
ordinance that is approved by the commissioner by August 1, 1989 
1991. 
    Sec. 22.  Minnesota Statutes 1988, section 299J.06, 
subdivision 2, is amended to read: 
    Subd. 2.  [POWERS AND DUTIES.] The council shall advise the 
commissioner, director, and other appropriate federal, state, 
and local government agencies and officials on matters relating 
to pipeline safety and operation.  The council shall advise the 
environmental quality board on implementation of sections 
116I.015 and 116I.02, subdivisions 2 and 3, and the director and 
commissioner on the implementation of sections 216D.01 to 
216D.07, 299F.56 to 299F.64 299F.641, and 299J.01 to 299J.17, 
and shall review and comment on proposed rules and on the 
operation of the office of pipeline safety.  
    Sec. 23.  Minnesota Statutes 1988, section 299J.08, is 
amended to read: 
    299J.08 [COMMISSIONER TO REPORT RELEASE; ADVICE AND 
COORDINATION.] 
    Upon receiving notice of an emergency release, the 
commissioner or a designee shall immediately report the 
emergency release to the emergency responder of the appropriate 
local government governmental unit, to the pollution control 
agency if the notice of the release is required by section 
115.061, and to any other person or office, as provided by the 
rules or procedures of the office of pipeline safety.  A 
pipeline operator's report of an emergency release to the 
commissioner satisfies the notification requirements of section 
115.061.  The commissioner shall advise the emergency responder 
concerning appropriate emergency procedures and coordinate the 
procedures.  The commissioner shall also coordinate responses to 
pipeline accidents with the federal government according to 
procedures established by the United States Secretary of 
Transportation. 
    Sec. 24.  Minnesota Statutes 1988, section 299J.10, is 
amended to read: 
    299J.10 [LOCAL GOVERNMENT EMERGENCY RESPONSE OPERATIONS 
PLAN.] 
    (a) A local governmental unit county or statutory or home 
rule charter city having a pipeline within its jurisdiction 
shall prepare a pipeline release an emergency 
response operations plan and supporting documents that will 
include appropriate pipeline safety information.  The format and 
content of the plan and supporting documents must be in 
agreement with the guidance and prototype planning documents 
provided by the department of public safety, division of 
emergency management.  The local governmental unit county or 
statutory or home rule charter city must consult with the 
pipeline owner or operator when preparing the plan.  Preparation 
of the plan must be coordinated by the county traversed by the 
pipeline for the other local governmental units within that 
county.  The commissioner shall prescribe rules for the content 
of the plan.  The plan must be completed and adopted by local 
governmental units within six months after the effective date of 
the rules prescribing the contents of the plan. 
    (b) A local governmental unit county or statutory or home 
rule charter city shall review and update its plan and 
supporting documents annually and amend it to reflect changes in 
the operation of the local governmental unit its operations, in 
the operation of the pipeline, or other matters relating 
to pipeline public safety.  The annual review, update, and 
approval of the plan and supporting documents must be in accord 
with the guidance provided by the department of public safety, 
division of emergency management.  The director may at any 
reasonable time examine a response an emergency operations plan 
required by this section. 
    Sec. 25.  Minnesota Statutes 1988, section 299J.11, is 
amended to read: 
    299J.11 [ADOPTION OF FEDERAL PIPELINE INSPECTION RULES.] 
    To enable the state to act as an agent of the United States 
Secretary of Transportation and to qualify for annual federal 
certification to enforce the federal pipeline inspection program 
authorized by the Hazardous Liquid Pipeline Safety Act, United 
States Code, title 49, sections 2001 to 2014, the federal 
Natural Gas Pipeline Safety Act, United States Code, title 49, 
sections 1671 to 1686, and the rules implementing those acts, 
the federal pipeline inspection rules and safety standards, and 
regulations and standards that may be adopted that amend them, 
are adopted. 
    Sec. 26.  Minnesota Statutes 1988, section 299J.12, is 
amended to read: 
    299J.12 [INTERSTATE PIPELINE INSPECTION FEE.] 
    Subdivision 1.  [ASSESSMENT AND DEPOSIT OF FEE.] For 
each year quarter following the delegation to the state of the 
inspection authority described in section 299J.04, the 
commissioner shall assess and collect from every interstate 
pipeline operator an inspection fee in an amount calculated 
under subdivision subdivisions 2 and 3.  If an operator does not 
pay the fee within 60 days after the assessment was mailed, the 
commissioner may impose a delinquency fee of ten percent of 
the annual quarterly inspection fee and interest at the rate of 
15 percent per year on the portion of the annual fee not paid.  
Fees collected by the commissioner under this section must be 
deposited in the pipeline safety account. 
    Subd. 2.  [CALCULATION OF INSPECTION FEE.] For interstate 
pipelines subject to the inspection authority granted under 
sections 299J.01 to 299J.11, for each calendar year that an 
inspection fee is to be assessed, the commissioner shall 
calculate the total number of miles of pipeline to be inspected, 
the total cost of inspection, and the percentage of the total 
miles to be inspected that are or will be operated by each 
pipeline operator.  Each pipeline operator must be assessed a 
portion of the total inspection costs equal to the percentage of 
the total miles of pipeline to be operated by the pipeline 
operator, but the total fee may not exceed $5 for each mile of 
the operator's pipeline the expenses attributable to the 
inspection of each pipeline facility must be directly charged to 
the appropriate pipeline operators on a quarterly basis.  The 
expenses must not include expenses that will be reimbursed by 
the federal government. 
    Subd. 3.  [SUPPORT COSTS.] The commissioner shall calculate 
the amount of the general support costs of the office of 
pipeline safety for the preceding quarter that is proportionate 
to the amount of time spent by the office in implementing 
sections 299J.01 to 299J.18 and maintaining interstate agent 
status, including the costs incurred in seeking federal 
interstate agent status in the first quarter's calculations.  
The costs incurred in seeking federal interstate agent status 
must include the costs directly attributable to salaries, 
training, and other activities and costs related to obtaining 
interstate agent status, from the time that the request for 
interstate agent status is submitted by the commissioner to the 
United States Department of Transportation, to the time that 
approval of interstate agent status is granted.  The calculated 
support cost must not include expenses that will be reimbursed 
by the federal government.  Each interstate pipeline operator 
must be assessed on a quarterly basis a portion of the 
calculated support costs equal to the percentage of the total 
miles of pipeline operated by the pipeline operator in Minnesota.
    Sec. 27.  Minnesota Statutes 1988, section 299J.16, is 
amended to read: 
    299J.16 [CIVIL PENALTY; INJUNCTIVE RELIEF.] 
    Subdivision 1.  [CIVIL PENALTY.] (a) A pipeline operator 
who violates section 299J.07, subdivision 1, 299J.09, or 
299J.15, or the rules of the commissioner implementing those 
sections, shall forfeit and pay to the state a civil penalty in 
an amount to be determined by the court as follows: 
    (1) for a violation of section 299J.09, up to $10,000 for 
each day that the operator remains in violation; and 
    (2) for a violation of section 299J.07, subdivision 1, or 
299J.15, up to $100,000, subject to a maximum of $500,000 for 
each violation a related series of violations. 
    (b) The penalty provided under this subdivision may be 
recovered by an action brought by the attorney general at the 
request of the commissioner, in the name of the state, in 
connection with an action to recover expenses of the director 
under section 299J.13, subdivision 4, or by a separate action: 
    (1) in the district court of Ramsey county; or 
    (2) in the county of the defendant's residence.  
    Subd. 2.  [ACTION TO COMPEL PERFORMANCE; INJUNCTIVE 
RELIEF.] A person who fails to perform an act required by 
section 299J.09, 299J.13, or 299J.15, or the rules of the 
commissioner implementing those sections, may be compelled to do 
so by an action in district court brought by the attorney 
general at the request of the commissioner, in the name of the 
state. 
    Sec. 28.  [REPEALER.] 
    Minnesota Statutes 1988, section 299J.09, is repealed. 
    Presented to the governor May 22, 1989 
    Signed by the governor May 23, 1989, 7:05 a.m.