Process Safety Management

Andre Da Costa Dallas, TXDirector, Process Safety March 1-2, 2016

Pipeline Safety Management Systems Workshop

Dr. Andre Da Costa has over 31 years of experience in the Chemical and Oil and Gas industries. Andre gained significant experience in Process Safety since the early 90s and facilitated or oversaw numerous process hazard analysis studies and quantitative risk assessments. He joined Pacific Gas and Electric Company (PG&E) in April 2013 to lead the development of the Process Safety function in Gas Operations. Prior to this position, Andre was a Chemical Engineering Manager with Corning Incorporated in Upstate NY to re-build the Chemical Engineering function (including Process Safety) across the corporation globally. Andre held different positions at Chevron (Richmond/Bakersfield, CA & Houston, TX), including Engineering Manager for a North American exploration and production Business Unit. Prior to Chevron, Andre held the role of Process Development Manager at Membrane Technology and Research in the San Francisco Bay Area where he led research and development of separation processes for natural gas, refining, and petrochemicals. Andre also worked for Fluor Corporation on a variety of oil and gas and mineral processing capital projects for Fortune 500 companies in Australia, Europe and United States.

Andre earned an M.Sc. degree in Chemical Engineering from the DI Mendeleev University of Chemical Technology in Russia, and a Ph.D. from the University of New South Wales in Sydney, Australia. He holds 14 US patents and 30 journal papers or presentations at scientific conferences. He is a Fellow of AIChE, IChemE and Engineers Australia. Andre served on the AIChEBoard of Directors as Treasurer with senior executives and held more than 20 leadership positions, including accountability for organizing one of the largest chemical engineering conferences in AIChE’s history – The 2006 Annual Meeting in San Francisco. Andre was also a member of the Managing Board of CCPS (Center for Chemical Process Safety) and currently represents PG&E in the CCPS Technical Steering Committee. Furthermore, he is a founding member and chair of the AGA Process Safety Sub-committee. He is fluent in 5 languages.

Dr. Andre R. Da CostaDirector, Process Safety

Introduction

Pacific Gas and Electric Company

By the numbers:

#1 in electric customers: 5.3 million

#2 in gas customers: 4.4 million

We serve 16 million Californians… about 1 in 20 Americans

Service area covers 70,000 square miles

23,000 employees

160,000 miles of electrical lines

49,000 miles of natural gas pipelines (80,000 with services)

~7 billion kilowatt-hours of utility generation

Asset Families

Backbone Transmission

Regulator Station

Upstream Fire Valve

Downstream Fire Valve

Emergency Zone Valve

Distribution Feeder Main≥20% SMYS

Distribution M

ain

Tee

Excess Flow Valve

CurbValve

Service

RiserM

Residential or Commercial Customer

NOT DRAWN TO SCALE

Regulator

C

Compressor Station

Storage

Transmission Pipe

Distribution ServicesMeasurement & Control

Distribution Mains

Not included in gas asset system

MMeter

Gathering Lines

Cathodic Protection

Station Protection

MMeter

Interconnecting Pipeline

Interconnect

M

Turbine & Ultrasonic Metered Customers

S

Odorizer

Separator

Distribution Feeder Main<20% SMYS

Local Transmission

Meter

Master Meter

Regulator

CNG/LNG

Compression & Processing

- - - - - - - - - - - - - 8 Gas Asset Families - - - - - - - - - - - - -

Customer Connected Equipment

GC

UST

HPR

~

~~

Storage Reservoirs

WellWell

ProcessingS C

LNG/CNG

LNG/CNG Portable Supplies

Vehicles

LNG/CNG Vehicle Fueling Stations

Personal Safety Compared to Process Safety

Process Safety is not about slips, trips and falls or what we commonly refer to as ‘personal safety.'

It focuses on the rigor of processes, safe design and the safe operation of assets.

Personal Safety Compared to Process Safety

Process Safety vs. Personal Safety

What is a Safeguard or Layer of Protection?

• Hazards are contained by multiple layers of protection (Barriers)

• Barriers may have weaknesses or holes

• When holes align the hazard passes through the barriers resulting in an incident (accident)

• Barriers may be: engineering controls (safe design), administrative controls(safe procedures) and behavioral controls (People safe actions)

• Holes can exist as unidentified gaps through systems (latent) or can be caused by people’s actions

Gas Safety ExcellenceSafety Management System

Gas Safety Excellence is PG&E’s safety management system designed to improve safety, manage risk, and drive continuous improvement by:

Putting safety and people at the heart of everything Investing in the reliability and integrity of our gas system Continuously improving the effectiveness and affordability of our processes

Attained PAS 55/ISO 55001

Certification in 2014

API RP 1173 Certificate of compliance on 11/2015

RC14001 Pursuing certification in 2016

Risk-Based Process Safety Management (RB PSM)

Process safety is the prevention and mitigation of unintentional releases of potentially dangerous materials or energy through the use of robust processes and equipment reliability.

Process Safety

Regulatory Compliance

Records & Information

Management

Risk Management

Codes and Standards

Asset Integrity

Management

Contract ManagementTraining & OQ

Emergency Preparedness

QA / QC

Continuous Improvement

Safety Culture

Adding PSM Rigor to Existing Work Streams

•Process Safety Culture•Workforce Involvement•Stakeholder Outreach•Conduct of Operations

•Process Knowledge Management

•Hazard ID and Risk Analysis (PHA)

•Operating Procedures•Safe Work Practices

•Compliance With Standards

•Asset Integrity and Reliability

•Contractor Management

•Training and Performance Assurance•Management of Change

•Emergency Management

•Incident Investigation•Auditing

•Measurement & Metrics•Management Review & Continuous Improvement

•PS Competency•Operational Readiness (PSSR)

Process Safety Change Leadership Journey

• Extensive PS briefings with GO & other LOB stakeholders

• Communication plan

• Adoption of AIChE CCPS RBPSM System

• Self-assessment of the 20 PSM elements

• PSM benchmarking• Stakeholder involvement in design

• Roadmaps to close gaps in each of the 20 Elements

• Stakeholder involvement at all org levels• 185 PHAs, 1100+ participants• 25 PSSRs, 225+ participants

• Adding PS rigor to existing work streams

• PSM Standard• PHA & PSSR procedures, Effective 1/1/16

• PHA & PSSR Checklists for projects in PDS

• PS boot camps• PHA & PSSR WBT• Incident Investigation Process & Training

• Process Safety department formed April 2013• Created the case for change• Commitment to launch Change Leadership effort April 2015

• PS Ambassador Awards

• Web Portal

• Roadmaps for each of the 20 Elements

• Recent adaptations to better integrate with asset families and other stakeholders

Wake-upCall• CCPS Tech Steering

Committee• AGA Process Safety

Sub-committee

PSM Maturity Model: Hypothetical Assessment

# Process Safety Management Elements1 *Process Safety Culture2 *Compliance with Standards3 Process Safety Competency4 Workforce Involvement5 Stakeholder Outreach6 Process Knowledge Management7 *Hazard Identification and Risk Analysis (PHA)

8 Operating Procedures9 Safe Work Practices

10 *Asset Integrity and Reliability11 Contractor Management12 Training and Performance Assurance13 *Management of Change (MOC)14 Operational Readiness (PSSR)15 Conduct of Operations16 Emergency Management17 Incident Investigation18 *Measurement and Metrics19 Auditing

20Management Review and Continuous Improvement

Commit to Process Safety

Understand Hazards and Risk

Manage Risk

Learn From Experience

* Critical to success PS element for which a formal benchmarking study was performed

0

20

40

60

80

1001

23

4

5

6

7

8

910

1112

13

14

15

16

17

18

1920

Sample of Tool OutputMaturity Score, %

2015 2016 2017 2018 2019

Needs For Effective and Sustainable PSM :• Build strong safety culture

• Build effective asset management program

• High level engaged sponsor committed to drive PSM culture across the organization− Dedicated senior program owner

− Dedicated corporate PSM SMEs

− Dedicated PSM resources at operations/facility level

• Transition from personal safety culture to a process safety culture

• Systematic and standardized approach across the organization

• Benchmark within and across other industries/share and exchange best practices

Lessons Learned

Committed Culture• Felt / Visible Leadership• Sense of Vigilance & Hazard

Awareness• Employees’ objectives include PS

metrics• Rewards program recognizes PS

practice and behaviors

Process Safety is part of our DNA• PHAs / QRAs / PSSRs are

performed and findings are addressed on all engineering & construction projects and across all existing assets

• Process Safety rigor is an integral part of asset management and management systems

PG&E goal is to become the safest and most

reliable public utility in the US

Vision of Success

Thank You

Andre R. Da Costa, Ph.D. Director, Process Safety, Gas OperationsARDD@pge.com