TRENCHLESS INSTALLATIONS

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TRENCHLESS INSTALLATIONSUNMARKED SEWER LINES

• PRESENTATION TO JULIE, Inc. Board of Directors
• Jim Loehr, NPL Construction Company
• April 25, 2008

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NPL CONSTRUCTION CO.
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NPL Locations Map


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THE NPL BUSINESS DEFINITION

• We provide best-cost solutions for quality
  conscious customers by supplying a high-qualified
  work force, quality equipment, experienced
  management in the safe installation, rehab,
  repair, replacement and maintenance of reliable
  infrastructure systems.
• Our core business focuses on energy
  distribution systems
• - Joint Trenching - Trenchless,
  no-dig construction
• - Turnkey projects - Small hole
  vacuum excavation
• - New Construction - Urban
  pipeline construction
• - Strategic Relationships - Urban
  restoration
• - Replacement, where NPL is the
  industry leader.

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MAJOR CUSTOMERS

• AGLR ATG
• Atmos (Greeley Gas / was TXU Gas) ATO
• Constellation (BGE) CEG
• Cinergy (Duke) DUK
• Centerpoint (Minnegasco) CNP
• Dakota Electric Association DEA
• Energy East (So. Connecticut Gas) EAS
• Integrys Energy (MERC, Peoples) TEG
• Nicor GAS
• NiSource (Nipsco, Columbia Gas) NI
• Oneok (KGS, ONG) OKE
• Pinnacle West (Arizona Public Service,
  Northwind) PNW
• Questar STR
• Salt River Project SRP
• Sempra SRE
• Sierra Pacific (Nevada Power) SRP
• Southwest Gas SWG
• Unisource UNS
• Washington Gas Light WGL

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NEW AND REPLACEMENT FOOTAGE
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WORKHOURS
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Safety and QualityIs Our Number One Value

• NPLs objective is to provide our employees a
  safe working environment and leave a quality
  installation in the ground that meets or exceeds
  our customers requirements.

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AGENDA

• THE ISSUE
• STATUS TODAY
• State Legislation
• LDC Policies and procedures
• Industry Association Involvement

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THE OFTEN FORGOTTEN UNDERGROUND WORLD
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MANY MORE UTILITIES ARE INSTALLED USING
TRENCHLESS TECHNOLOGY
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POSSIBLE SCENARIO?
What could happen?
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GAS LINE IN A 6 SEWER
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GAS LINE SEWER LINE ROTARY-ROOTER DISASTER
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LOW FREQUENCYHIGH SEVERITY
THE EXPOSURE
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THE BIG CONCERNS

1. Catastrophic human tragedy
2. Huge costs

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HOW OFTEN DOES THIS HAPPEN?
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MINNESOTA

• 27 crossbores reported to the Minnesota Public
  Utilities Commission

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PALO ALTO, CA CASE STUDY

• 4 Blocks were inspected
• 24 crossbores were discovered.

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WHAT ARE THE ODDS?ANOTHER CASE STUDY
11,000 Laterals Were Inspected
250 Crossbores Identified And Repaired
2 of Sewer Laterals Were Crossbored.
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A CITY CASE STUDY

• Just over 400 gas crossbores discovered over 200
  miles of sewer main lines
• One crossbore located at a school
• Averaged 2 per mile
• The utility mailed notices to over 50,000
  residences asking them to first call a special
  phone number if they had a sewer backup.

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ANOTHER CITY

• Averaged 3 crossbores per mile of sewer mains
• One crossbore located at a hospital

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SEWER LINES NEED TO BE MARKED,JUST LIKE ALL
OTHER UTILITIES
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INSTALLATION SOLUTIONS

• All underground facilities, including sewer
  lines, should be marked by the entity that
  receives revenue from the facility.
• All new sewer laterals should be installed with a
  location device (i.e. tracer wire, marker balls,
  etc.).

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AGENDA

• THE ISSUE
• STATUS TODAY
• State Legislation
• LDC Policies and procedures
• Industry Association Involvement

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STATES THAT HAVE UPDATED ONE CALL LAWS

• ARIZONA
• GEORGIA
• MINNESOTA
• NEVADA
• OREGON
• VIRGINIA
• WISCONSIN

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STATES WITH CHAMPIONS STARTING GRASS ROOTS
EFFORTS NEED SUPPORT

• CALIFORNIA
• COLORADO
• INDIANA
• TENNESSEE
• TEXAS
• WASHINGTON

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GOOD STATE PROSPECTSIN NEED OF A CHAMPION

• ILLINOIS
• IOWA
• MARYLAND
• OHIO
• OKLAHOMA

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the presence of unmarked and unidentified sewer
laterals is one of the most dangerous threats
posed in the underground pipeline
industry. DCA
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AGENDA

• THE ISSUE
• STATUS TODAY
• State Legislation
• LDC Policies and procedures
• Industry Association Involvement

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LDC POLICIES AND PROCEDURES

• LARGE WEST COAST LDC HAS POLICY OF REQUIRING AND
  ENFORCING THAT EVERY MAIN AND SEWER LATERAL BE
  DAYLIGHTED BEFORE EXCAVATING
• MIDWEST LDC HAS POLICY OF REQUIRING AND ENFORCING
  THAT All SEWERS ARE PRE-LOCATED (CAMERAD) BEFORE
  GAS IS INTRODUCED
• SOUTHEAST LDC HAS COMPLETED A SYSTEM REVIEW USING
  CAMERAS

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LDC POLICIES AND PROCEDURES

• LARGE SOUTHWEST LDC HAS
• CAMERA PROGRAM TO IDENTIFY PAST INSTALLATION
  ISSUES
• POLICY REQUIRING AND ENFORCING THAT EVERY SEWER
  MAIN AND LATERAL BE LOCATED BEFORE EXCAVATING

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The bottom line is we have time bombs that need
to be defused in the interest of public
safety. --Samuel T. Ariaratnam,
Ph.D.,P.E. Associate Professor Del Webb
School Construction Arizona State University
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AGENDA

• THE ISSUE
• STATUS TODAY
• State Legislation
• LDC Policies and procedures
• Industry Association Involvement

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INDUSTRY ORGANIZATION INVOLVEMENT

• AMERICAN GAS ASSOCIATION
• - BEST PRACTICES
• COMMON GROUND ALLIANCE
• - BEST PRACTICES
• DISTRIBUTION CONTRACTORS ASSOCIATION
• FINDING CHAMPIONS
• SUPPORTING CHAMPIONS VIA INFORMATION SHARING
• NATIONAL UNDERGROUND CONTRACTORS ASSOCIATION
• POSITION PAPER
• NORTH AMERICAN SOCIETY FOR TRENCHLESS TECHNOLOGY
• BEST PRACTICES

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WHAT IS NEEDED

• LOCAL CHAMPIONS TO CHANGE STATE LAWS
• GOVERNMENT REGULATORY AGENCIES TO GET INVOLVED IN
  LEGISLATIVE CHANGES AND ENFORCEMENT
• MORE LDCS TO TAKE UP THE CAUSE
• FOR ALL TO UNDERSTAND THAT THIS IS NOT JUST A
  CONTRACTOR PROBLEM. IT IS AN INDUSTRY
  SAFETY PROBLEM.

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NPL Policy
Trenchless Technology Policy for Sewer Lines
-- All sewer lines must be verified by some
physical process.
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CONFIDENTIAL PROPRIETARY TRENCHLESS TECH
UTILIZED FOR GAS LINE INSTALLATIONS (Bore Card
Required by Each Crew at Each Address)
Conflict is defined as either crossing a sewer
line within 4 or paralleling one within 4.
Privately-Owned Sewer Systems (trailer park,
school, etc.) require 100 daylight.
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NPL Construction Bore Card

• Subdivision or Project Name _____________________
  __________________
• Lot number or Street Address ____________________
  ________________________
• City and State __________________________________
  Zip Code__________
• Installation Date _________________ One Call
  Ticket ___________________
• Area Number _______ Job/Phase
  ______________________________
• Superintendent _____________________________
  _____________
• Type of Bore
• Pneumatic ? Directional Drill ?
• Other ? Explain _______________
• Type of Verification of Sewer Lateral ?
  Crossing ? Parallel
• Daylight ? Sonde ? Camera ? Fish Tape
  and Located ?(Within 4 Pothole)
• Averaged ? Other ? Explain
  ___________________________
• ________________________________
  
• (Requires Area Manager Signature/Printed Name)
• Type of Verification of Sewer Main ?
  Crossing ? Parallel
• Daylight ? Sonde ? Camera ?
• Average Depth using tape measure or manholes ?
• Averaged ? Other ? Explain
  ___________________________
• ________________________________
  

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CORE VALUES
Always do what is right Treat all people with
respect Work together Tell the truth Take care of
your customers Be a good steward Keep it
simple Never quit Remember, we dig ditches Our
Core Values are the fundamental element to our
success.
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QUESTIONS?
QUESTIONS?