Pipeline Safety Update Bill Moody Executive Vice President Southwest Gas Corporation

Industry Incidents San Bruno, CA (2010) Marshall, MI (2010) Allentown, PA (2011) Sissonville, WVA (2012) East Harlem Explosion (2014) Refugio Beach Oil Spill, CA (2015) Aliso Canyon, CA (2015)

Enforcement Findings Deficient integrity management procedures/programs Inadequate training of control room personnel Ineffective atmospheric corrosion survey Inadequate odorant monitoring equipment Failure to follow company standards and procedures Failure to conduct leak surveys Unreasonable delay and ineffective incident response Failure to focus on public safety

Safety of Gas Transmission and Gathering Lines MAOP verification Direct assessment and In Line Inspection Moderate consequence area concept Corrosion Control Management of change

NTSB Suggests An SMS That: Proactively address safety issues before they become incidents/accidents. Documents safety procedures and requiring strict adherence to the procedures by safety personnel. Treat operator errors as system deficiencies and not as reasons to punish and intimidate operators. Require senior company management to commit to operational safety. Identify personnel responsible for safety initiatives and oversight. Implement a nonpunitive method for employees to report safety hazards. Continuously identify and address risks in all safety-critical aspects of operations. Provide safety assurance by regularly evaluating (or auditing) operations to identify and address risks.

NTSB Chairman Hart “We call upon the industry for a widespread adoption of these recommended practices, from the largest international pipeline operating companies to the smallest municipalities, to ensure continuous improvement and safety in pipeline operations”.