Houston Chronicle Sunday

THREAT IGNORED

System called vulnerable nearly a decade ago, but companies fought regulation

- By Ari Natter and Jennifer A. Dlouhy

A ‘blinking red’ hack attempt in 2012 led to new pipeline policy.

A decade ago, after hackers were caught infiltrati­ng natural gas pipeline operations and an al-Qaida video emerged calling for an “electronic jihad” on U.S. infrastruc­ture, then-Sen. Joseph Lieberman tried to sound the alarm.

The system is “blinking red,” Lieberman warned his Senate colleagues during debate on the threat in 2012. “Privately owned and operated cyber infrastruc­ture can well be, and probably some day will be, the target of an enemy attack.”

Led by the Connecticu­t independen­t and one-time vice presidenti­al candidate, lawmakers sought to require energy companies to strengthen computer security. But the effort withered under fierce lobbying by oil companies and other corporate interests that succeeded in killing the legislatio­n. That left in place a system of voluntary guidelines that failed to stop last month’s ransomware attack on Colonial Pipeline Co., which paralyzed a major artery for fuel along the East Coast.

“It’s really a lost opportunit­y,” said Lieberman, now senior counsel at Kasowitz Benson Torres. “The attack on the Colonial Pipeline might not have happened if we passed the legislatio­n.”

In response to the attack, the Department of Homeland Security issued a new directive Thursday that requires private operators of pipelines to report any cybersecur­ity incidents and attacks on their network to the Cybersecur­ity and Infrastruc­ture Security Agency and asks the companies to appoint a cybersecur­ity coordinato­r.

“This is the first time that there’s been (a) mandatory reporting” requiremen­t that CISA has imposed on pipeline operators, a senior official of the Department of Homeland Security told reporters.

Pipeline operators also are required to conduct an assessment of how their cybersecur­ity practices match guidelines issued by the Transporta­tion Security Administra­tion, which is responsibl­e for overseeing pipeline safety.

The new directive is a defeat for oil companies and pipeline operators that for more than a decade have successful­ly fought off federal standards to thwart cyberattac­ks from legislatio­n or regulatory agencies. Unlike power plants, U.S. pipelines weren’t required to follow any federal cybersecur­ity mandates, even though Homeland Security was given the authority to impose them when it was created in the wake of the Sept. 11, 2001 attacks.

Until now, the TSA had resisted using its authority to mandate cyberprote­ction measures.

“My belief was we could get quicker and better security through working with the industry instead of regulating them because regulation­s set minimum security standards and industry in many cases was doing more than that,” said Jack Fox, who served as the agency’s manager of pipeline security before retiring in 2016.

Lieberman’s bill would have imposed cybersecur­ity performanc­e requiremen­ts on privately owned critical infrastruc­ture — and slap fines on companies that fell short. The rules would have been applied to more than pipelines: sectors where a hostile takedown

of computer systems could lead to mass casualties, the collapse of financial markets or the disruption of energy and water supplies, were to be included.

Even a watered-down version of the bill failed to overcome a Republican-led filibuster.

For Lieberman, the failure still stings.

“We would sort of ask ourselves who is driving this aggressive opposition and the answer we were getting was the energy companies and the pipeline companies,” he said.

Every major U.S. oil company — including Exxon Mobil, Chevron Corp. and ConocoPhil­lips — lobbied on the legislatio­n, alongside some refiners and at least one pipeline operator. Colonial didn’t lobby on the measure in 2012, according to disclosure forms it filed with Congress. However, groups it belonged to did, including the American Petroleum Institute, the Associatio­n of Oil Pipe Lines and the Chamber of Commerce — a political titan that reported spending $103.9 million influencin­g government policies in 2012.

The hacking episodes foreshadow­ed how alluring fuel delivery systems are to cybercrimi­nals,.

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 ?? Francois Picard / AFP via Getty Images ?? The U.S. government imposed cybersecur­ity requiremen­ts on pipelines for the first time following a ransomware attack.
Francois Picard / AFP via Getty Images The U.S. government imposed cybersecur­ity requiremen­ts on pipelines for the first time following a ransomware attack.

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