Pipeline Safety Program Stakeholder Workshop on Proposed Rulemaking PG – WAC (Annual Pipeline Fee Methodology - Gas) PL – WAC (Annual Pipeline Fee Methodology - Hazardous Liquid) April 20, :30 a.m.

Agenda Welcome and introductions Review of statutory guidance on fee methodology Consideration of current fee structure and identify areas of concern Discussion of alternative fee methodologies Review of fee structure for alternative fee methodologies Next steps in rulemaking process

Review of Statutory Guidance Chapter WAC Gas Companies – Safety WAC WAC Annual Pipeline Safety Fee Methodology RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program Chapter WAC Hazardous Liquid Pipelines – Safety WAC WAC Annual Pipeline Safety Fee Methodology RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program RCW 81.88RCW 81.88Gas and Hazardous Liquid Pipelines RCW RCW Citizens Committee on Pipeline Safety RCW RCW Damage Prevention Account – Use of Funds

Considerations and Areas of Concern Considerations Miles Hours Master Meters Program Current Fee Methodology and Formula Total Program Cost (Less Federal Reimbursement) = Total Fees distributed across companies Based upon total miles, (indirect cost) plus 2-year total of direct hours (direct program) WAC Gas Companies WAC Hazardous Liquid Pipelines WAC Annual Pipeline Safety Fee Methodology WAC Annual Pipeline Safety Fee Methodology RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program

Current Fee Methodology and Formula

Option #1 Options Use Current Fiscal Year Fee Structure Determine Total Number of Units (77) Divide Operations Costs by Number of Units ($471,764 / 77) = 6, Multiply Each Operator Unit Total by 6, Two Year Hours by Operator Doesn’t Change Add the Unit Cost to the Hour Cost for Total Annual Fee

Option #2 Options Use Current Fiscal Year Fee Structure Determine Total Number of Units (77) Divide Total Fees to the Operator by Number of Units ($999,500 / 77) = 12, Multiply Each Operator Unit Total by 12,982.47

Option #3 Options Use Current Fiscal Year Fee Structure Utilizing the Two Year Total of Hours by Operator Divide Total Fees to the Operator by Number of Hours ($999,500 / 17,886.70) = $55.88 Hour Multiply Each Operator Hours by $55.88

Next steps in rulemaking process WAC Gas Companies WAC Hazardous Liquid Pipelines WAC Annual Pipeline Safety Fee Methodology WAC Annual Pipeline Safety Fee Methodology RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program

Questions on process, methodology, timeline, etc.? Questions? WAC Gas Companies WAC Hazardous Liquid Pipelines WAC Annual Pipeline Safety Fee Methodology WAC Annual Pipeline Safety Fee Methodology RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program RCW RCW Pipeline Safety Fee – Procedure to Contest Fees – Regulatory Incentive Program