Lessons Learned….. Were PG&E practices an anomaly or the tip of a bigger problem?How would we know?

2011 Pipeline Safety Trust Conference – Getting to Zero

November 17, 2011

Evolution of Pipeline Safety

Regulations, standards and operating practices continue to evolve producing continuous improvement

1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

2001-02Pipeline Safety Act amended IMP & ASME

B31.8S

2012Operators

will complete baseline

assessments in HCAs

1928 API 5L First

standard for pipeline

1951American Standard Code For Pressure

Piping

1970First DOT

Regulations

2010INGAA forms Task Force on Pipeline

Safety

1998DOT Risk

Management Demonstration

Projects

What are these Practices?

•What are the Assets?•What are the Business and Regulatory Models?

•What is the Culture?•What are the Communication Practices?

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Do you have confidence in Assets?

• Physical Infrastructure Inventory Operations Integrity Management

• Information Management Asset Management Decision Support Systems

• Human Resources Employees Management Suppliers Professional Support

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Do you have confidence in the Business and Regulatory Models?

• Safety Policy and Practices Pipeline Company and their Service Providers Industry Associations Regulatory Agencies

– PHMSA

– State Partners

Legislative Federal and State

• Economic Policy and Practices Intrastate

– 50 Individual States

Interstate– Federal Energy Regulatory Commission

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Do you have confidence in the Culture?

• Culture Company Industry

– INGAA

– AGA

– R&D Organizations

Other Industries Regulatory & Legislative

– PHMSA– State Safety Agencies– Economic Regulators– Legislators

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INGAA Board Pipeline Safety Task Force

• Formed in January 2011• Lead by Alan Bradley (Questar)• Steering team formed to develop & implement INGAA Pipeline Integrity

Strategic Plan• Four work streams under the direction of the Task Force

Work-Streams

Focus Areas

Commitment & Communications

Integrity Management Continuous

Improvement

LegislativeStakeholder Communication

Federal Energy Regulatory

Commission

Research & Development

Pipeline Safety Re-Authorization

Improvements in Operational Practices

Cost Recovery Mechanisms

INGAA Guiding Principles of Pipeline Safety

• Our goal is zero incidents - a perfect record of safety and reliability for the national pipeline system. We will work every day toward this goal.

• We are committed to safety culture as a critical dimension to continuously improve our industry’s performance.

• We will be relentless in our pursuit of improving by learning from the past and anticipating the future.

• We are committed to applying integrity management principles on a system-wide basis.

• We will engage our stakeholders - from the local community to the national level - so they understand and can participate in reducing risk.

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INGAA’s View on What is Needed?

Holistic Approach to Pipeline Safety• INGAA plans to work together with key stakeholders and PHMSA to accommodate

NTSB’s concerns, striking a balance between safety benefits and disruptions of service, and prioritizing those actions which yield the greatest reduction in risk.

• Reauthorize Pipeline Safety Act• Stronger state and federal excavation prevention measures• Industry

R&D Share lessons learned Infuse best practices Invest in next generation of workers and safety tools Make safety culture an integral part of the pipeline industry day in and day out

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Effective pipeline safety is a shared responsibility - and requires active engagement between operators, the government and the public

Integrity Management Continuous Improvement Action Teams

1. Stakeholder Outreach Two-way communication with meaningful performance measures. Actively promote PIPA (Pipeline and Informed Planning Alliance)

2. Risk Management Apply risk management concepts beyond High Consequence Areas (HCAs) with comprehensive threat analysis

3. Integrity Management Tools Enhance corrosion control methods and anomaly management protocols

4. Pipelines Built Prior to PHMSA Regulations Develop inventory and protocols to manage integrity

5. Technology Development & Deployment

• Improve crack-detection tools & management• Work with PHMSA to produce a R&D road map, and• Define assessment alternatives for non-piggable lines

6. Management Systems Apply safety culture principles to drive learning across the industry

7. Emergency Preparedness Response Update isolation valves automation and enhance public awareness

8. New Construction Fully implement the 2010/2011 INGAA Foundation Pipe and Construction Action Plans

9. Storage Clarify regulatory oversight for storage facilities

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INGAA Members 9 Step Action Plan

Apply Risk Management beyond High Consequence Areas (HCAs)

Raise the Standards for Corrosion Anomaly Management

Demonstrate Fitness for Service on Pre-Regulation Pipelines

Shorten Pipeline Isolation and Response Time to 1 Hour

Improve Integrity Management Communication and Data

Implement the Pipeline and Informed Planning Alliance (PIPA) Guidance

Evaluate, Refine and Improve Threat Assessment and Mitigation

Implement Management Systems across INGAA Members

Provide Forums for Stakeholder Engagement and Emergency Officials

References on INGAA Policies and Positions

• INGAA Web Site Pipeline Safety Section http://www.ingaa.org/Topics/Safety.aspx

• INGAA Positions supporting “DOT Report to America” http://www.ingaa.org/Filings/15735.aspx

• INGAA Initial Policy Filing to PHMSA ANPRM http://www.ingaa.org/Filings/16943.aspx

• INGAA Member Companies http://www.ingaa.org/Members/963.aspx

• INGAA Foundation Member Companies http://www.ingaa.org/Foundation/FoundationMembers.aspx

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