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Pipeline Advisory Committee

Pipeline Advisory Committee. Groundhog Day. Jeff Wiese – OPS July 11, 2012. Outline. Opening Comments Groundhog Day? Perspective on Past Performance How Did We Get To “Here” The Fallout PHMSA Pipeline Priorities for 2012 & Beyond Upcoming Events. Opening Comments.

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Pipeline Advisory Committee

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Presentation Transcript

  1. Pipeline Advisory Committee Groundhog Day Jeff Wiese – OPS July 11, 2012

  2. Outline • Opening Comments • Groundhog Day? • Perspective on Past Performance • How Did We Get To “Here” • The Fallout • PHMSA Pipeline Priorities for 2012 & Beyond • Upcoming Events

  3. Opening Comments • We Have Made Good Progress – Together – Over the Years • It’s Been A Tragic and Tough Couple of Years • Clearly We Have Work to Do • Your Advice and Counsel is More Important Now Than Ever • We Can Wrest Control of Our Own Future, or Cede it to Others • Resistance if Futile, Not to Mention an Expensive Time Waster • Themes are Emerging That We Can’t Ignore • Some are fundamental – risk assessment, records, tools, QA/QC, emergency response preparedness, etc. • Some are finish work, but essential components – executive engagement, employee involvement,

  4. Groundhog Day?? • The more things change, the more they stay the same… • We have a solid regulatory framework that still has many flexible, performance-based requirements, we make progress then… • Numerous operator failures to rigorously implement this framework raise serious questions regarding need for additional prescription, as well as adding lots of work to do for both of us as a direct result of the backlash – once again, the agenda is driven by others • 2012 ends the baseline period of transmission Integrity Management, and 2013 will bring serious reconsideration of the IMP framework and seek to identify/fill gaps and soft spots

  5. Perspective on Past Performance

  6. Significant Accidents – All Systems 2 Roughly 70% of fatalities and injuries are members of the public 1 Data as of 03/05/2012

  7. Significant Accident BreakdownTotal by Type (Fatalities) 1 Does not include gathering lines - totals may not add – excludes “fire first” incidents; 2 data as of 03/05/2012

  8. How Did We Get To “Here” • Flashback to January 2010 • “Window” was open, and our performance had been good • What happened next • DWH and fallout • A polarized political environment, and a media frenzy • A spate of tragic and highly visible accidents in 2010: Marshall, San Bruno, Allentown, Philadelphia, Yellowstone River, GA-TX-ND, etc. • A prescription for damage from weak links / poor performers and tragic, outlier events

  9. The Fallout – Thru 2011 • Administration and Many Others Believe A Fix is Needed • Secretary LaHood’s Call to Action to ALL Parties • Push for regulatory framework fortification (prescription?) • Demand for stronger oversight at all levels • Case made for pipeline infrastructure reinvestment • Emergence of the economic regulator’s role • NTSB has delivered their investigation findings and recommendations for both San Bruno • Congress reauthorized US, with a ton of new mandates, little time, and no to few new resources – late before we begin

  10. Four More Years! • Pipeline Safety Laws Just Reauthorized – only 15 hearings! • What’s the Congress Calling For – A LOT! (more on how in a minute) • Stronger enforcement with due process protections – for basics (x2), restoring spill plan authority, and for excavation damage (exemptions) • MAOP Confirmation (grandfather clause), valves, leak detection, EFV’s, depth of cover, damage prevention (grants), emergency notification • Transparency: cast iron, oil spill plans, basic data • Studies galore: valves, leak detection, expansion of IMP, gathering lines, risks of dilbit transport, nonpetroleum hazardous liquid pipelines, new construction permit process (State and Federal - GAO) • Limitation on use of national consensus standards • Flat funding for both Federal and State programs from Congress • But not from the Administration - FY 2013 Request to Congress

  11. Fallout – Continues in 2012 • NTSB has now weighed in on the Marshall, MI failure, and is expected soon to deliver its reports on Illinois and Florida • IG to has weighed in on their views on integrity management for HL pipelines, and is actively auditing our State programs

  12. 2012 & Beyond Pipeline Safety Priorities

  13. Agency Priorities for 2012 • Continue the cleanup we began in 2011 • Focus on legislative mandates & NTSB recommendations • Regulatory (next) • Workshops (coming up) • Studies (transparent process) • Deal with a variety of new audits – IG & GAO • Operationally – CRM, DIMP, PA, move to II, new construction, and risk assessment/records verification, damage prevention, PIPA, etc. • Follow through on QMS issues, fitness for service

  14. 2012 Regulatory Priorities • Major Priorities • Federal enforcement on excavation damage NPRM • Hazardous Liquid rule – through final phase • Pipeline Enforcement rulemaking – through final phase • Gas rulemaking – through proposed rule phase • Likely to pick up most Congressional/NTSB items • MAOP verification in class 3 & 4 + HCA’s (and beyond?) • Associated issues of records inadequacies, reporting exceedences, and material testing requirements

  15. 2012 Regulatory Priorities • Capacity Permitting • Gathering lines – data collection and report to Hill • Larger application EFV’s • Miscellaneous rulemaking: Seismicity, accident/incident notification, consensus standards updates • Cost recovery for “design reviews” • Incorporation of consensus standards – transparency • CO2 (gaseous) and biofuel pipeline fixes • Risk management and class location dilemma • Mapping – accuracy and HCA updates + awareness

  16. 2012 Studies • Valves for New/Rehabilitated Gas Pipes • GAO to look at application to existing pipelines • Leak Detection – Hazardous Liquid and Natural Gas • Cover Over Inland Water Crossings – Hazardous Liquid • Cast Iron Inventory and Replacement/Rehabilitation • Dilbit Transportation Risks • Excavation Damage and Role of Exemptions • R&D Results and Plan

  17. Upcoming Events • Emergency Responder Forum Follow-up • Leak Detection Workshop – March 27th (webcast) • Valve Workshop – March 28th (webcast) • April – National Safe Digging Month – Call 811 • DIMP Workshop – June 27 (DFW) (webcast) • R&D Workshop – July • Data and Metrics Workshop – September (webcast) • Other possible workshops/events – capacity limited • Damage prevention exemptions • Risks Associated with Pipeline Transportation of Dilbit • Gas gathering, IMP Expansion / Class Location

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