Americas Natural Gas Utilities Distribution Pipelines

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Americas Natural Gas Utilities Distribution
Pipelines
The Connection To the Customer

• November 2, 2006

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Topics Covered

• Fast Facts
• Gas Utility Pipeline Safety Regulatory Oversight
• Excavation Damage Impacts
• Safety Priorities
• Managing Distribution Integrity
• We Are In This Together

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Natural Gas Utilities

• Deliver 23 of energy used in the United States
• Distribute to 63 million homes and 5 million
  businesses through 1.9 million miles of pipeline
  to meet customer needs
• Work closely with emergency responders,
  firefighters and communities to ensure safety

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Natural Gas Pipeline System
Designed for operational excellence in the safe,
secure, environmentally-friendly and
cost-effective delivery of natural gas
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Gas Utility Pipeline Safety Regulatory Oversight
Pipeline Safety Legislation
Congress
Pipeline and Hazardous Materials Safety
Administration
Office of Pipeline Safety
Sets Minimum Regulation
Investigates Major Accidents Makes Recommendations
State Agencies Direct Oversight May Be More
Stringent
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Excavation Damage Causes Most Incidents
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Number of Incidents
Excavation by 3rd party, earth movement,
flooding, vandalism
Excavation by utility operator, corrosion,
materials, welds
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Natural Gas Utilities Safety Priorities

• Increased Focus on Excavation Damage Prevention
• Distribution Integrity Management Enhancements
• Transmission Integrity Management in Populated
  Areas
• Operator Qualification
• Public Awareness of Pipelines and Safety
• Deliverability Continuity (Hurricane
  Preparedness, Pandemic Flu, Infrastructure
  Security)

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Managing Distribution Integrity

• DOT Stakeholder teams formed in 2005
• State and federal regulators
• Utility operators
• Firefighter and public representation
• Multiple meetings held throughout 2005
• American Gas Foundation used as study starting
  point
• DOT study completed January, 2006
• Proposed rule anticipated by year end

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What We Have Learned

• Distribution pipeline systems operations are
  SAFE, but we can do more
• Overall Approach
• Excavation damage nation-wide education program
  and federal legislation to prevent excavation
  damage
• High-level regulation
• Implementation guidance
• Continue research and development
• Operator written integrity management plan
  requirements
• Address leaks responsibly
• Perform a risk assessment to determine if excess
  flow valves should be installed (if not already
  installing devices)
• Collect meaningful performance measures

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We Are In This Together
Natural Gas Utilities, Regulators, Legislators
and the Public Should Support A Common Sense,
Risk-Based, And Technically Sound Approach To

• Maintain or rebuild infrastructure
• Manage Increased excavation activity
• Continue to deliver natural gas safely, reliably,
  and efficiently, by not placing undue burden on
  consumer
• Meet the energy needs today and in the future

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Questions?
Natural Gas Operations Always In Focus

• Lori S. Traweek
• Senior Vice President,
• Operations Engineering
• 202-824-7330
• Ltraweek_at_aga.org