Pipelines

1
Pipelines Risk Based Management

• How Safe is Safe?

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How Safe is Safe?

• Energy Transportation Network
• What does safe operation require?
• What does risk management provide?
• Hazardous Liquid IMP Rule
• What is Risk?
• Pipeline Threats
• Recent industry performance

3
Energy Transportation Network

• 160,000 miles of onshore and offshore Hazardous
  Liquid Pipelines
• 298,000 miles of onshore and offshore Gas
  Transmission Pipelines
• 1,850,000 miles of Natural Gas Distribution
  pipelines

4
Pipelines Are A Long Term Asset

• 67 of Hazardous Liquid Pipelines built before
  1970
• In-service degradation can be mitigated
• Corrosion control Cathodic Protection and
  Coatings
• Trained personnel
• Protection from 3rd Party Damage
• Testing with smart and smarter pigs
  non-destructive testing other inspection
• Timely Repairs and maintenance

5
Safe Operation Requires

• Sound system design
• Selection and use of qualified materials
• Proper construction
• Thorough and adequate inspection, testing,
  maintenance and repair
• Continuous system monitoring and control
• Operations conducted by trained and qualified
  workers
• Implementation of damage prevention best
  practices
• Identification and mitigation of risks and
• Coordination and preparation for emergency
  response.

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Risk Management Should

• Identify needs
• Analyze cost vs benefit of various choices
• Establish an operating discipline
• Measure all the processes
• Continuously improve all aspects of the operation

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Hazardous Liquid IMP Rule

• IMP Rule March 2001
• Identify segments that could affect HCAs by
  December 31, 2001
• Written IMP by March 31, 2002
• Assess 50 of segments by September 30, 2004
• Complete Baseline Assessments by March 31, 2008

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What is Risk?

• Risk is a concept that denotes a potential
  negative impact to an asset or some
  characteristic of value that may arise from some
  present process or future event. In everyday
  usage, "risk" is often used synonymously with the
  probability of a loss or threat. In professional
  risk assessments, risk combines the probability
  of an event occurring with the impact that event
  would have

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Risk Assessment Methods

• Risk Likelihood x Consequence

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Pipeline Threats

• Time Dependent
• External corrosion
• Internal Corrosion
• Stress Corrosion Cracking
• Stable
• Manufacturing Related Defects
• Defective pipe seam
• Defective pipe

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Pipe Threats

• Welding/Fabrication Related
• Defective pipe girth weld
• Defective fabrication weld
• Wrinkle bend or buckle
• Stripped threads/broken pipe/coupling failure
• Equipment
• Gasket O-ring failure
• Control/Relief equipment malfunction
• Seal/pump packing failure
• Miscellaneous

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Pipe Threats

• Time Independent
• Third Party/Mechanical Damage
• Damage inflicted by first, second or third
  parties (instantaneous/immediate)
• Previously damaged pipe (delayed failure mode)
• Incorrect operations
• Incorrect operational procedure
• Weather Related and Outside Force
• Cold weather
• Lightning
• Heavy rains or floods
• Earth Movement

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Uses of Risk Management

• Prioritization of Line Assessment Schedules
• Selection of Assessment Methods
• Elimination of tens of thousand of integrity
  threats
• Preventive and Mitigative Measures
• Implementing damage prevention best practices
• Enhanced cathodic protection monitoring
• Set appropriate inspection intervals
• Enhanced training
• Installing EFRDs
• Modifying leak detection and pressure monitoring
  systems

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