The Commission collected newly established pipeline mileage fees, permit processing fees, and applicable late fees that totaled $3.0 million from June 29, 2018, through January 31, 2019, from pipeline operators. Auditors tested the accuracy of a sample of pipeline mileage fees and permit processing fees, which totaled $699,446, that the Commission collected and recorded in USAS for 53 operators during that time period and determined that the Commission:
- Accurately calculated the pipeline mileage fees tested.
- Collected the correct permit processing fee amount.
- Accurately recorded the collected fees tested in USAS.
However, the Commission did not consistently ensure the accuracy of the data it used to track the active status of operator pipeline permits and the associated pipeline mileage. Specifically, auditors identified inaccuracies in the data related to 2 of the 53 operators tested. For example, the errors included listing an unpaid permit processing fee as paid and listing an inactive operator as active. The Commission also waived a permit processing fee for a third operator; however, it did not have a policy to provide guidance on waiving fees, including required approvals and documentation requirements.
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