What’s Wrong with Integrity Management?How Do We Improve Integrity Management?

Terry Boss

Senior Vice President Safety Environment and Operations

PST Conference 11/19/2015

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Who is INGAA?

INGAA represents the majority of the interstate natural gas transmission pipeline companies operating in

the U.S., as well as comparable companies in Canada. Its members transport the nation's natural gas

through a network of roughly 200,000 miles of pipelines.

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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PHMSA Natural Gas Unintentional Release Reporting Hierarchy

Serious Incidents

Significant Incidents

Reportable Incidents

Leaks

Events Occurring

5

Natural Gas Transmission Leaks Repaired per Year

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

200

400

600

800

1000

1200

1400

Corrosion Leaks

Year

Num

ber o

f Lea

ks

64% Reduc-tion

PHMSA Annual Report

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Cumulative Mileage Assessed Utilizing Integrity Management

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

140,000.00

Does Not Include Reassessment

Mileage

Source: PHMSA Annual Report 2004 through 2014, F 7100.2-1; on-shore gas transmission; INGAA Members as of 2015

Approximately 73% of INGAA Member’s Mileage Has Been Assessed By YE 2014

PHMSA Natural Gas Unintentional Release Reporting Hierarchy

Serious Incidents

Significant Incidents

Reportable Incidents

Leaks

Events Occurring

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Reportable Incidents in HCAs All Onshore Transmission

Threats 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Grand Total

External corrosion 1 1 0 0 0 0 0 0 0 2 0 0 0 4

Internal corrosion 0 0 0 0 0 0 0 1 1 0 0 0 0 2

Stress Corrosion Cracking 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Manufacturing-Related 0 0 1 0 0 1 0 0 1 0 0 0 0 3

Construction and Fabrication-Related 0 0 0 0 0 0 0 0 0 0 1 0 1 2

Equipment-Related 1 0 0 1 1 1 0 0 0 0 3 1 2 10

Weather-Related and Outside Force Damage 1 1 1 0 0 1 0 2 1 2 3 2 1 15

Incorrect Operations 0 0 0 0 2 0 0 0 0 1 0 2 0 5

Excavation Damage 3 1 2 3 1 2 1 1 1 2 1 0 0 18

Other / Miscellaneous 0 1 0 1 1 1 0 1 0 0 1 0 2 8

Subtotal 6 4 4 5 5 6 1 5 4 7 9 5 6 67

End of Baseline

PHMSA Natural Gas Unintentional Release Reporting Hierarchy

Serious Incidents

Significant Incidents

Reportable Incidents

Leaks

Events Occurring

10

Equipment Related Cause (3-Year Rolling Average) – Significant

Num

ber

of I

ncid

ents

Per

Yea

rs

Fatalities: 0Injuries: 5

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

2

4

6

8

10

12

14

Leaks

Other

Ruptures

Control Valve

Instrumentation

Communications

Block Valve

Check Valve

Relief Valve

Power Failure

Stopple

Pressure Regulator

ESD Failure

Other Control/ Re-lief

Onshore natural gas transmission; intra and interstate

PHMSA Natural Gas Unintentional Release Reporting Hierarchy

Serious Incidents

Significant Incidents

Reportable Incidents

Leaks

Events Occurring

12

Serious Incidents have Declined

13

Injuries and Fatalities 2004-14

Threat Fatalities Injuries

External Corrosion 1 (1-2007) 4 (2)

Internal Corrosion 0 0

Stress Corrosion Cracking 0 (3)

Manufacturing-Related 8 (8-2010 PGE) 52 (51 PGE)

Construction-Related 0 0

Equipment-Related 1 7

Excavation Damage 6 (1-2006) 13 (2)

Weather and Outside Force 0 11 (9)

Incorrect Operations 0 10

Other/ Miscellaneous 0 10 (3)

Public shown in parenthesis

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How Do We Improve Integrity Management?

•All Stakeholders Should Be Diligent in Excavation Damage Protection

•Expand the Use of “Integrity Management”•Implement Standardized Safety Management Systems (SMS)

•Improve the Capability “to Understand and Manage” Outside Force and Land Movement

•Monitor Failure Trends for New or Changing Challenges

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PHMSA Reporting Definitions

§191.17   Transmission systems; gathering systems; and liquefied natural gas facilities: Annual report.

Leaks are unintentional escapes of gas from the pipeline that are not reportable as Incidents under §191.3. A non-hazardous release that can be eliminated by lubrication, adjustment, or tightening is not a leak. Operators should report the number of leaks repaired based on the best data they have available. For sections replaced and retired in place, operators should consider leak survey information to determine, to the extent practical, the number of leaks in the replaced section. *

§191.3   Definitions (Effective 2011)

Incident means any of the following events:**

1. An event that involves a release of gas from a pipeline, or of liquefied natural gas, liquefied petroleum gas, refrigerant gas, or gas from an LNG facility, and that results in one or more of the following consequences:

i. A death, or personal injury necessitating in-patient hospitalization;

ii. Estimated property damage of $50,000 or more, including loss to the operator and others, or both, but excluding cost of gas lost;

iii. Unintentional estimated gas loss of three million cubic feet or more;

2. An event that results in an emergency shutdown of an LNG facility. Activation of an emergency shutdown system for reasons other than an actual emergency does not constitute an incident.

3. An event that is significant in the judgment of the operator, even though it did not meet the criteria of paragraphs (1) or (2) of this definition*http://phmsa.dot.gov/staticfiles/PHMSA/DownloadableFiles/Files/Pipeline/GT-GG_Annual_Instructions%20_PHMSA_F71002-

1.pdf**http://www.ecfr.gov/cgi-bin/text-idx?SID=508ca795abddf4b389244286a66e14f8&node=49:3.1.1.1.7&rgn=div5#49:3.1.1.1.7.0.8.2

PHMSA Analysis Definitions

• PHMSA defines Significant Incidents as those incidents reported by pipeline operators when any of the following specifically defined consequences occur:*

fatality or injury requiring in-patient hospitalization

$50,000 or more in total costs, measured in 1984 dollars

highly volatile liquid releases of 5 barrels or more or other liquid releases of 50 barrels or more

liquid releases resulting in an unintentional fire or explosion

• PHMSA defines a serious pipeline incident as an event involving a fatality or injury requiring in-patient hospitalization.**

**http://primis.phmsa.dot.gov/comm/reports/safety/SerPSI.html?nocache=8073

*http://primis.phmsa.dot.gov/comm/reports/safety/SigPSI.html?nocache=1099