House Study Bill 160



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED DEPARTMENT OF
                                            COMMERCE/UTILITIES
                                            DIVISION BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to interstate natural gas pipelines including
  2    requirements regarding construction, operation, and
  3    maintenance, applicable penalties and resultant damages, and
  4    easements.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1294DP 81
  7 kk/gg/14

PAG LIN



  1  1    Section 1.  Section 306A.3, unnumbered paragraph 2, Code
  1  2 2005, is amended to read as follows:
  1  3    The department shall adopt rules, pursuant to chapter 17A,
  1  4 embodying a utility accommodation policy which imposes
  1  5 reasonable restrictions on placements occurring on or after
  1  6 the effective date of the rules, on primary road rights=of=
  1  7 way.  The rules may require utilities to give notice to the
  1  8 department prior to installation of a utility system on a
  1  9 primary road right=of=way and obtain prior permission from the
  1 10 department for the proposed installation.  The rules shall
  1 11 recognize emergency situations and the need for immediate
  1 12 installation of service extensions subject to the standards
  1 13 adopted by the department and the utilities board.  The rules
  1 14 shall be no less stringent than the standards adopted by the
  1 15 utilities board pursuant to chapters 478, 479, 479A, and 479B.
  1 16 This paragraph shall not be construed as granting the
  1 17 department authority which has been expressly granted to the
  1 18 utilities board to determine the route of utility
  1 19 installations.  If the department requires a utility company
  1 20 permit, the department shall be required to act upon the
  1 21 permit application within thirty days of its filing.  In cases
  1 22 of federal=aid highway projects on nonprimary highways, the
  1 23 local authority with jurisdiction over the highway and the
  1 24 department shall comply with all federal regulations and
  1 25 statutes regarding utility accommodation.
  1 26    Sec. 2.  Section 479A.1, Code 2005, is amended to read as
  1 27 follows:
  1 28    479A.1  PURPOSE.
  1 29    It is the purpose of the general assembly in enacting this
  1 30 law to confer upon the utilities board the power and authority
  1 31 to implement certain controls over the transportation of
  1 32 natural gas to protect landowners and tenants from
  1 33 environmental or economic damages which may result from the
  1 34 construction, operation, or maintenance of a pipeline within
  1 35 the state.  It is also the purpose of the general assembly in
  2  1 enacting this law to provide for the board to act as an agent
  2  2 for the federal government in determining pipeline company
  2  3 compliance with the standards of the federal government for
  2  4 pipelines within the boundaries of the state.
  2  5    Sec. 3.  Sections 479A.3, 479A.5, 479A.6, 479A.8, 479A.10,
  2  6 479A.12 through 479A.17, and 479A.19 through 479A.28, Code
  2  7 2005, are repealed.
  2  8                           EXPLANATION
  2  9    This bill concerns the regulation of interstate pipelines,
  2 10 pipeline companies, and the underground storage of gas by the
  2 11 utilities division of the department of commerce.
  2 12    The bill strikes from the purpose of Code chapter 479A
  2 13 conferring upon the utilities board authority over the
  2 14 interstate transportation of natural gas and the protection of
  2 15 landowners and tenants from the construction, operation, or
  2 16 maintenance of a pipeline in this state.
  2 17    The bill repeals a provision restricting the construction
  2 18 of pipelines along highways, waters, and streams, a provision
  2 19 requiring notice to the board prior to the construction of a
  2 20 pipeline, a provision requiring a pipeline company to pay
  2 21 certain inspection costs, a provision granting authority to
  2 22 the utilities board to collect inspection fees and assess
  2 23 civil penalties for failure to pay inspection fees, a
  2 24 provision granting the utilities board the authority to adopt
  2 25 rules for the enforcement of Code chapter 479A, and a
  2 26 provision requiring pipeline companies to post a bond prior to
  2 27 construction of a pipeline.
  2 28    The bill also repeals a provision requiring filing of a
  2 29 surety before construction begins, a provision granting
  2 30 jurisdiction to the district court of any county for cases
  2 31 arising under Code chapter 479A, a provision granting
  2 32 authority to the utilities board to adopt rules establishing
  2 33 standards for the restoration of agricultural land after
  2 34 pipeline construction, a provision permitting a pipeline
  2 35 company to enter private land for land surveys, and a
  3  1 provision providing for civil penalties and judicial review.
  3  2    The bill repeals a provision allowing the cancellation of
  3  3 an agreement granting an easement by the person seeking the
  3  4 easement and a provision permitting a landowner or pipeline
  3  5 company to petition a magistrate for an appointment of an
  3  6 arbitrator.  The bill also repeals a provision prohibiting a
  3  7 pipeline company from installing a subsequent pipeline upon an
  3  8 existing easement until pending damage claims are resolved,
  3  9 and a provision prohibiting a pipeline company from installing
  3 10 a pipeline unless a written statement regarding construction
  3 11 damages is on file with the board.
  3 12    The bill repeals a provision regarding the negotiation of
  3 13 an annual fee for an easement, and a provision describing
  3 14 compensable losses and claims for damages due to use of a
  3 15 pipeline easement.  The bill repeals a provision relating to a
  3 16 county board of supervisors making a determination of the
  3 17 amount of damages caused by a pipeline company when installing
  3 18 a pipeline, and a provision regarding compensation for
  3 19 additional costs of new tile construction caused by an
  3 20 existing pipeline.  The bill also repeals a provision
  3 21 regarding the reversion of an easement due to nonuse and a
  3 22 provision permitting a landowner or contractor to require the
  3 23 presence of the pipeline company during farmland improvement
  3 24 near a pipeline.
  3 25    The bill provides that the utilities board should only act
  3 26 as an agent for the federal government and not directly
  3 27 regulate interstate pipelines.  The board shall continue to
  3 28 inspect the construction, maintenance, and condition of
  3 29 pipelines and underground storage facilities and collect fees
  3 30 for inspection.
  3 31    The bill makes other conforming corrections.
  3 32 LSB 1294DP 81
  3 33 kk:rj/gg/14.1