Gerry Lee APGA Security and Integrity Foundation OQ Program Manager 417-766-2818 glee@apga

1. APGA Security and Integrity Foundation Interstate Municipal Gas Agency Annual Meeting April 30, 2008 Springfield, Illinois Gerry Lee APGA Security and Integrity Foundation OQ Program Manager 417-766-2818 glee@apga.org

2. Outline of Presentation • Background

3. Outline of Presentation • Background • Summary of Work

4. Outline of Presentation • Background • Summary of Work • Operator Qualification • Distribution Integrity • O & M Procedures • Training

5. Outline of Presentation • Background • Summary of Work • Current Status

6. Outline of Presentation • Background • Summary of Work • Current Status • What’s Next

7. Background of SIF

8. Security and Integrity Foundation • Established in October 2004 by APGA

9. Security and Integrity Foundation • Established in October 2004 by APGA • 501(c)(3) not-for-profit corporation

10. Security and Integrity Foundation • Established in October 2004 by APGA • 501(c)(3) not-for-profit corporation • Created to promote operational integrity, safety and security

11. Security and Integrity Foundation • Established in October 2004 by APGA • 501(c)(3) not-for-profit corporation • Created to promote operational integrity, safety and security • Prevent, mitigate and repair damage to its system

12. Security and Integrity Foundation • Established in October 2004 by APGA • 501(c)(3) not-for-profit corporation • Created to promote operational integrity, safety and security • Prevent, mitigate and repair damage to its system • Demonstrate compliance with regulatory and industry standards

13. Security and Integrity Foundation • Established in October 2004 by APGA • 501(c)(3) not-for-profit corporation • Created to promote operational integrity, safety and security • Prevent, mitigate and repair damage to its system • Demonstrate compliance with regulatory and industry standards • Focus on small natural gas operators, LP operators and master meter operators

14. PHMSA APGA & NAPSR APGA Security and Integrity Foundation State Public Service Commission State Gas Association

15. SIF Board of Directors • NARUC • Don Mason, Ohio • Terry Jarrett, Missouri • NAPSR • Darin Burk, Illinois • Bruno Carrera, New Mexico • Leo Haynos, Kansas • David Lykken, Washington • Mark McCarver, Mississippi • APGA • Leonard Phillips, Missouri • Ben Andrews, Tennessee • George Bronson, Kansas • Steve Carter, Alabama • Jim Crowley, Maryland • Richard Worsinger, North Carolina • UtilitySure • Tim Sullivan

16. Why focus on small gas utilities?

17. Meters Served by Munis

18. Meters Served by MunisNearly 90% deliver to < 5000

19. Employees

20. EmployeesOver 75% employ ≤ 10 people

22. Summary of Work

23. SIF Summary of Work • Phase 1 • Identify B31Q Covered Tasks

24. SIF Summary of Work • Phase 1 • Identify B31Q Covered Tasks • Phase 2 • Assess Training and Evaluation Materials

25. SIF Summary of Work • Phase 1 • Identify B31Q Covered Tasks • Phase 2 • Assess Training and Evaluation Materials • Phase 3 • Acquire/Develop/Modify Training and Evaluation Materials

26. SIF Summary of Work • Phase 1 • Identify B31Q Covered Tasks • Phase 2 • Assess Training and Evaluation Materials • Phase 3 • Acquire/Develop/Modify Training and Evaluation Materials • Phase 4 • Conduct Training and Evaluation

27. SIF Summary of Work – Phase 1Identify Covered B31Q Tasks • Focus group of regulators and operators

28. SIF Summary of Work – Phase 1Identify Covered B31Q Tasks • Focus group of regulators and operators • Identified B31Q covered tasks common to a majority of master meter, small natural gas and LP operators

29. SIF Summary of Work – Phase 1Identify Covered B31Q Tasks • Focus group of regulators and operators • Identified B31Q covered tasks common to a majority of master meter, small natural gas and LP operators • These covered tasks form the basis of the SIF operator qualification and training programs

30. SIF Summary of Work – Phase 2Assess Training and Evaluation Materials • Subject Matter Expert (SME) team was formed

31. SIF Summary of Work – Phase 2Assess Training and Evaluation Materials • Subject Matter Expert (SME) team was formed • Knowledge, Skills, Abilities and Abnormal Operating Conditions were identified for each covered task

32. SIF Summary of Work – Phase 2Assess Training and Evaluation Materials • Subject Matter Expert (SME) team was formed • Knowledge, Skills, Abilities and Abnormal Operating Conditions were identified for each covered task • Criteria was developed for judging the adequacy of commercially available training and evaluation products

33. SIF Summary of Work – Phase 2Assess Training and Evaluation Materials • Subject Matter Expert (SME) team was formed • Knowledge, Skills, Abilities and Abnormal Operating Conditions were identified for each covered task • Criteria was developed for judging the adequacy of commercially available training and evaluation products • Commercially available training/evaluation products were identified

34. SIF Summary of Work – Phase 3Acquire/Develop/Modify Training and Evaluation Materials • Commercially available evaluation products were compared against the KSA’s and AOC’s

35. SIF Summary of Work – Phase 3Acquire/Develop/Modify Training and Evaluation Materials • Commercially available evaluation products were compared against the KSA’s and AOC’s • Products had to address all the KSA’s and AOC’s and include both written tests and hands on evaluations

36. SIF Summary of Work – Phase 3Acquire/Develop/Modify Training and Evaluation Materials • Commercially available evaluation products were compared against the KSA’s and AOC’s • Products had to address all the KSA’s and AOC’s and include both written tests and hands on evaluations • Acquire necessary licenses to use material

37. SIF Summary of Work – Phase 3Acquire/Develop/Modify Training and Evaluation Materials • Commercially available evaluation products were compared against the KSA’s and AOC’s • Products had to address all the KSA’s and AOC’s and include both written tests and hands on evaluations • Acquire necessary licenses to use material • Identify locations and potential qualifiers to conduct SIF Training/Evaluations

38. SIF Summary of Work – Phase 3Acquire/Develop/Modify Training and Evaluation Materials • Commercially available evaluation products were compared against the KSA’s and AOC’s • Products had to address all the KSA’s and AOC’s and include both written tests and hands on evaluations • Acquire necessary licenses to use material • Identify locations and potential qualifiers to conduct SIF Training/Evaluations • Create a database of operators

39. Curriculum Agreements • Industrial Training Services • HIT-KIT • Midwest Energy Association • Energy World Net • EWebOQ

40. SIF Summary of Work – Phase 4Conduct Training and Evaluation • Qualify at least 1000 employees of small natural gas, LP and master meter operators

41. SIF Summary of Work – Phase 4Conduct Training and Evaluation • Qualify at least 1000 employees of small natural gas, LP and master meter operators • Set up sessions using SIF certified materials

42. Session Format • 1 -3 Day Sessions • Independent, Self-Contained Days • Instructor Led • Maximum Class Size = 15 • Written Evaluations • Hands On Ability Evaluations • Registration Fees: $125 – 199/ day

43. SIF Covered Task Categories • Corrosion Control (5) • Valves (3) • Tapping and Stopping (2) • Odorization (1) • Leak Investigation (2) • Damage Prevention (4) • Purging (3)

44. SIF Specific Covered Tasks • Corrosion Control • Measure Structure-to-Electrolyte Potential • Inspect Rectifier and Obtain Readings • Visual Inspection for Atmospheric Corrosion • Visual Inspection of Buried Pipe and Components when exposed • Visual Inspection of Installed Pipe and Components for Mechanical Damage

45. SIF Specific Covered Tasks • Valves • Manually Opening and Closing Valves • Valve-Visual Inspection and Partial Operation • Valve – Preventative Maintenance • Purging • Purging with Gas • Purging with Air or Inert Gas • Isolating, Abandoning and Deactivating Pipeline Facilities

46. SIF Specific Covered Tasks • Tapping and Stopping • Tapping a Pipeline with a Built-in Cutter • Squeeze off Plastic Pipe

47. SIF Specific Covered Tasks • Odorization • Odorization-Periodic Sampling • Leak Investigation • Inside Gas Leak Investigation • Outside Gas Leak Investigation

48. SIF Specific Covered Tasks • Locating and Damage Prevention • Locate Underground Pipelines • Install and Maintain Pipeline Markers • Damage Prevention during Excavation Activities by or on Behalf of the Operator • Damage Prevention Inspection during Third Party Excavation or Encroachment Activities as Determined Necessary by Operator

49. Current Status

50. Results of Sessions Scheduled • Sessions Began in September 2006 • Over 50 sessions have been scheduled • Workshops covering 13 states Florida Mississippi Tennessee Rhode Island New Mexico Arkansas Alabama Georgia Connecticut Massachusetts Missouri Indiana Illinois