Progress of the US Department of Transportation Risk Management as a Regulatory Alternative

As of June 1997, many interstate transmission pipelines are deciding whether or not to submit letters of intent, formally indicating they wish to participate in DOT’s Risk Management Demonstration. A joint industry regulatory quality action team developed the five documents for the demonstration: the Program Framework, the Risk Management Demonstration Standard, the Guidance on Performance Measures, the Communications Plan, and the Review Protocols and Criteria. By the August 1^st 1997, twelve companies had applied to be accepted into the Risk Management Demonstration program and partner with DOT to show Congress that risk management is a safer and more efficient means of regulating the transportation of natural gas and liquids. Each company has submitted a unique range of RM activities. This paper summarizes the projects, discusses the common Program Wide and unique Project Specific performance measures that evolved from the consultative processes, and attempts to assess the initial success of the program.