Pipelines and Risk Management How Safe is Safe?

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Pipelines and Risk ManagementHow Safe is Safe?

• Pipeline Safety Trust Conference
• Denise Hamsher
• Enbridge Energy Company
• November 2006

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• Over 14,000 miles of natural gas gathering,
  transmission and crude oil pipelines
• Operating since 1950
• Expanding pipeline systems to meet market
  transport needs

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How Safe is Safe?

• Can we eliminate risk?
• Or is question What is acceptable risk?
• Scientific and technical answer?
• Government policy?
• Regulatory decision?
• Community concern?
• There may be no single answer to question of How
  Safe is Safe?
• But there are approaches to improve understanding
  and communicate risk

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Technical Scientific Answer

• Risk Probability X Consequence
• Probability
• a revised USGS report concluded that a 33
  percent probability now exists for one or more
  large earthquakes in the San Francisco Bay Area
  region between 1990 and 2000..
• Based on fact-finding and data
• But whose facts?
• Consequence
• Safety of public and workers
• Environmental impact
• Upsets and reliability in service
• Costs and liability

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Risk

• As seen by engineer regulator
• Risk probability x consequence
• As seen by others
• Risk hazard x concern
• Hazard may be actual or perceived
• Concern may be over safety, environment,
  fairness, property value, lack of information,
  lack of trust

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Why we havedifferent perceptions of risk

• Familiar versus Unknown
• Benefit versus Burden
• Fair versus Unfair
• Controlled versus Out of my control
• Trusted source versus Suspicious source

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Government Regulatory Answer

• Public Health and OSHA standards on acute or
  long-term exposure limits to certain chemicals
• Prescribed frequency of inspections or
  maintenance of pipelines
• Gas operations class locations and designation
  of liquid pipeline HCAs, each requiring special
  safety measures
• All true.all based on factbut does policy make
  everyone feel safe?

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Community Perspective

• Public definition of risk
• Risk Hazard X Concern
• We all expect zero risk for ourselves and loved
  ones
• Sometimes hazard is high and concern low and
  sometimes concern is high and scientific facts
  indicate a low risk

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So how do we manage the interface among technical
assessments, government policy and public concern?
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Approaches that help

• Accept responsibility
• Encourage fact finding and sharing
• Reduce and mitigate risks
• Basis of regulatory and consensus standards
• All parties act with respect and be trustworthy
• Principled leadership
• Acknowledge risk issue-management is function of
  investment in communications and involvement

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Example Regulatory Policies for Pipeline
Operations

• Public Involvement
• Fact finding and research rather than reactive to
  unusual, rare event
• Flexibility to ensure effective practices
• Education, awareness, dialogue

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Example Planning a New Pipeline

• Early planning and dialogue with community
• County
• Farm Bureaus
• Landowners, etc.
• Fact finding
• Route alternative considerations
• Review route with landowner, adjusting as
  possible
• Trustworthy dialogue
• Knowledgeable, trained company representatives
• Commitment by all to reach solutions
• Two-way public consultation requires investment

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Planning New Pipeline (contd)

• Mitigate Risks
• Design and routing carefully planned
• Special construction practices
• Protect farmlands with special soil handling
  techniques
• Special river crossing techniques. . .etc.
• Additional safeguards near some areas may require
  consideration of
• Thicker wall pipe under rivers
• Supplemental patrols or inspections
• Warning tape to warn excavators
• Route deviations

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How Safe is Safe?A few observations..

• Risk and safety is all in the eye of beholder
• We all know there is no such thing as zero risk,
  but we want assurances we are safe
• Risk communications must be interactive
• Each party should commit to
• Increasing knowledge and understanding
• Enhancing trust and credibility
• Resolving conflict