Safety Management Systems – Catchy Title OQ NPRM 80 FR 39916 Presented by ENERGY worldnet, Inc. 10 Essential Elements to the Perfect Pipeline Safety Management System Safety Management Systems – Catchy Title Subtitle Western Regional Gas Conference | August 23-24, 2016 Cory Mattison ABCD v1.0

Safety Culture Safety cultures consist of shared beliefs, practices, and attitudes that exist at an establishment. Culture is the atmosphere created by those beliefs, attitudes, etc., which shape our behavior. positive attitudes towards compliance (meeting and exceeding minimum standards); feel responsible for public safety, and protection of the environment, for each other’s safety, and for the health of the business; and fundamentally believe in non-punitive reporting. Safety as a core value with participation at all levels. Examples: wearing a hard hat to walk from car to office. Wearing a vest and steel-toes on the property even when sitting at a desk, start every meeting with a safety message or having a daily huddle with a safety message

Pipeline Safety Management System A systematic way to identify hazards and control risks while maintaining assurance that these risk controls are effective. Guidelines for the facilitation of a good safety culture. Activities combine to make processes. SMS addresses the process as a whole instead of individual activities. (such as manufacturing, installing, regulating etc.) Other industries have already been using these for over 20 years and DOT issued a final rule for FAA in January 2015 that requires most commercial airlines to have SMS in place by 2018.

Collaborative Approach Risk Management - Sometimes we have bad policies and processes in place. NTSB 2014– Chris Hart “If you’ve got good people who aren’t following the rules there is probably a reason.” Where is the problem? With the person or the system? Usually it is the interaction between the two. Focus on improvement and not on punishment. manufacturing, installing, regulating etc. – how can we work together to become more than our sum (synergize)

System Think Identify Issues Prioritize the Issues Develop solutions Evaluate the solutions Collaboration – A process that is built with all parties is more likely to be implemented and is more likely to be incrementally improved as time goes on System Think brings everyone together to look at a complex system collaboratively – look at the big pictures and how the parts interact

NTSB (National Transportation Safety Board) Accident Investigators across all of DOT including pipelines Results of these investigations are recommendations Many other industries have SMS programs and some have been in effect for over 20 years already Result of an investigation surrounding an incident in 2012: pipeline industry needs to look at having it's own SMS program, recommended API write an RP

API/ANSI RP 1173 Framework to reveal and manage risk Promote a learning environment Continuously improve pipeline safety and integrity API 1173 - identifies what is to be done, and leaves the details associated with implementation and maintenance of the requirements to the individual pipeline operators

PDCA Cycle i. PLAN– The ‘Plan’ step includes the establishment of goals and objectives, including output expectations and setting key performance indicators. ii. DO– The ‘Do’ step is the execution of planned activities. iii. CHECK – The ‘Check’ step is a review of performance indicators and activity results compared with planned objectives. iv. ACT – The ‘Act’ step develops and implements improvements identified through the ‘Check’ step. Activities in the ‘Act’ step may feed into establishment of a new round of goals, objectives and performance indicators in the ‘Plan’ step and a new round of the PDCA cycle.

PHMSA fully supports the implementation of RP 1173 and plans to promote vigorous conformance to this voluntary standard.  Written Statement of Administrator Marie Therese Dominguez before the House Committee on Transportation and Infrastructure on Pipeline Reauthorization, Feb 25, 2016 PHMSA is committed to adopting the implementation of SMS internally and supporting it externally They have consulted with other industries that have had programs for over 20 years. Aviation, Chemical, Maritime… etc.

10 Essential Elements

Essential Elements 1) Leadership And Management Commitment 2) Stakeholder Engagement 3) Risk Management 4) Operational Controls 5) Incident Investigation, Evaluation, And Lessons Learned 6) Safety Assurance 7) Management Review And Continuous Improvement 8) Emergency Preparedness And Response 9) Competence, Awareness, And Training 10) Documentation And Recordkeeping

Leadership Commitment Top Management Demonstrate commitment Establish goals and measurable objectives Make communication, risk reduction and continuous improvement routine for the company Support and resource allocation

Leadership Commitment Management Ensure a clear connection between objectives of the plan and day-to-day work activities Ensure plans, policies and procedures are in place Establish performance measures for personnel responsible for SMS elements Conduct regular reviews of progress Implementing, maintaining and adhering to processes

Leadership Commitment Employees Identify and report risks Identify potential improvements Take action to prevent or minimize incidents Identifying and reporting hazards

Stakeholder Engagement Internal - communicate SMS goals, objectives, and procedures. Give employees and contractors a way to raise concerns and make recommendations for improvements. Includes employees and contractors External - communicate SMS operations, efforts, and performance. Includes regulatory bodies and representatives of the public

Risk Management Identify and assess threats Plan to mitigate risk and intended effectiveness Include pipeline, materials construction, operation history, safety record and environment Review at least annually

Operational Controls Operating Procedures - written procedures to minimize human error System Controls - pipeline operator shall ensure pipeline systems are designed, manufactured, fabricated, installed, operated, maintained, inspected and tested subject to applicable requirements, recommendations and standards. Management of Change - written procedures on how to communicate changes

Incident Investigation, Evaluation, & Lessons Learned Investigate Accidents –procedure for investigating incidents and near-misses Identifying causes and contributing factors, Producing findings and lessons learned, Recommendations for safety performance improvement, including changes to processes and procedures

Incident Investigation, Evaluation, & Lessons Learned Lessons Learned – procedure for how to determine and document lessons learned from investigations. Action to implement risk assessment and improvement must be tracked and completed.

Safety Assurance Audits At least once every 3 years Internal auditors must not be involved in the work of the SMS or operations being audited External auditors allowed Response to Audit findings Defined response times Corrective actions taken Closure

Management Review & Continuous Improvement Top Management annual review Goals and objectives of the Pipeline SMS Status of corrective actions from past management reviews Performance measures and KPIs Results of the risk management review Results and recommendations of incident investigations, evaluations and lessons learned Results of internal and external audits and evaluations Changes that could affect the Pipeline SMS including legal, regulatory or other requirements, stakeholder feedback, and evaluation of safety culture No set it and forget it.

Management Review & Continuous Improvement Pipeline safety audit and assessment results Data analysis Management review No set it and forget it. Always reviewing and revising. Making corrections and then monitoring them to make sure they work as expected.

Emergency Preparedness & Response Determination of emergency types Internal and external notification requirements Identification of response resources and interfaces Recognition of the Unified Command/Incident Command Structure Communication planning Training and drill programs Program and plan review process Improvement processes Written procedures for preparing for and effectively managing pipeline incidents.

Competence, Awareness & Training Operators will provide training to employees and contractors to ensure all have the requisite competence and are aware of the following: Applicable elements of the Pipeline SMS that affect their job requirements Newly emerging or changing risks, problems in execution of the Pipeline SMS, and opportunities to improve processes and procedures Potential consequences of failure to follow processes or procedures

Documentation & Recordkeeping Operator will identify, distribute and control documents and records required to fulfill the elements of the Pipeline SMS. Pipeline SMS, including revisions, translations, and updates are: Reviewed and approved for adequacy prior to issue and use Remain legible and readily identifiable Readily available and accessible to workers performing an activity

Discussion

Discussion