Natural Gas is Moving Forward Pipeline Safety Management Systems Workshop April 12-13, 2017

Safest Energy Delivery System in America The natural gas industry has a long-standing record of providing natural gas service safely and effectively to more than 177 million Americans and is dedicated to the continued enhancement of pipeline safety. AGA has several initiatives associated with Safety. Let’s start with some general safety information. As you can see from the following series of slides, which are pages from the 2017 Playbook, safety is VERY important to AGA members.

Safe & Reliable Safety is the core value for the natural gas distribution and transmission industry.

A CULTURE OF SAFETY “AGA and its member companies are committed to promoting positive safety cultures among their employees throughout the natural gas distribution industry. All employees, as well as contractors and suppliers providing services to AGA members, are expected to place the highest priority on employee, customer, public and pipeline safety.” The full AGA Safety Culture Statement, developed and adopted by AGA’s Board of Directors, is available on the AGA website. - Excerpt from AGA Safety Culture Statement

Enhancing Safety: A Joint Effort AGA and its members are dedicated to the continued enhancement of pipeline safety. Safety is a joint effort, a partnership that engages customers, regulators and policymakers at every level. We are committed to proactively collaborating with federal and state regulators, public officials, emergency responders, excavators, consumers, safety advocates and the public to continue improving the industry’s longstanding record of providing natural gas service safely and effectively to more than 177 million Americans. Natural gas utilities spend $22 billion annually to help enhance the safety of natural gas distribution and transmission systems.

Safely transported Across the Country Natural gas pipelines, which transport approximately one-fourth of the energy consumed in the U.S., are an essential part of the nation’s infrastructure. Transportation by pipeline is the safest form of energy delivery in the country.

Regulatory Oversight The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) establishes federal safety standards for pipelines, and PHMSA partners with state pipeline safety agencies on inspections and enforcement of intrastate pipelines. Individual states can regulate intrastate pipeline systems above and beyond federal requirements, and there are hundreds of state-specific pipeline safety regulations currently in place.

Customer Involvement is Key EXCAVATION DAMAGES DOWN 50% While the industry has multiple safeguards in place to protect its customers, it is important that customers actively participate through these methods: Excavation damage is the leading cause of serious pipeline accidents, but progress is being made. Reporting the smell of natural gas immediately Calling 811 before embarking on any excavation project Maintaining gas appliances and fuel lines Being attentive to safety communications provided by utility

Peer Review Program AGA members are advancing the safety of the industry through a number of voluntary actions, including the AGA Peer Review Program, launched in 2015. This voluntary peer-to-peer safety and operational practices review program allows participants to receive reviews from their peers, share leading practices and identify opportunities to better serve customers and communities.

Working Together to Further Increase Safety AGA’s “Commitment to Enhancing Safety” outlines the natural gas utility industry’s commitment to proactively collaborate with public officials, emergency responders, excavators, consumers, safety advocates and members of the public to continue to improve the industry’s long-standing record of providing natural gas service safely and effectively. AGA’s Safety Alert Notification System allows AGA or its members to quickly notify other AGA members of safety issues that require immediate attention.

Pipeline Safety Management Systems There are several other pages about safety in the 2017 Playbook; but I purposely chose those that had principles related to the principles or elements of pipeline safety management systems. So let’s get specific about AGA and AGA member initiatives and activities related to Pipeline Safety Management Systems.

Pilot Implementation Volunteers PSMS Initiatives Pilot Implementation Volunteers “Roadmap” guidelines Pilot Implementation Volunteers to publish lessons learned/summary document second quarter 2017 Workshops March 2016 April 2017 Discussion Group Quarterly sessions AGL Resources Avista Corporation CenterPoint Energy Eversource Energy National Grid NiSource Pacific Gas and Electric Company Peoples Gas and Power Company, Inc. Piedmont Natural Gas Company, Inc. Southwest Gas Corporation Vectren Corporation Washington Gas Light Company

AGA Discussion Groups Query other utilities on what their experiences and challenges have been in this area Identify leading practices implemented by other utilities Exchange operating procedures, performance indicators, or work documents Determine which companies are ideal for additional follow-up discussions The Pipeline Safety Management Systems Discussion Group is continuing through 2017 On the 2016 second quarter call, there were 85 companies represented. Discussion Groups have had presenters and facilitated discussions during their conference calls. Presenters have discussed implementation of pipeline safety management systems or other safety management systems. Facilitated discussions consisted of questions members asked, or issues for which they needed assistance and wanted information from other AGA members with specific members sharing information about how they addressed the issue. No official notes were provided and no recordings have been made of these calls. The Managing Committee agreed that this group will continue through 2017. Most discussion groups last for only 1 year, this discussion group is going on 3 years. A demonstration of how important this subject is.

Pipeline Safety Management Systems in Technical Committee Scopes Draft scopes of several new and existing technical committees include “Elements of Pipeline Safety Management Systems as it pertains to _____” Specifically included: Field Operations Quality Management Included: Supplemental Gas – Planning, design, safe practices, emergency procedures, O&M procedures Safety and Occupational Health – Safety and health programs meant to protect employees, including vehicular safety.

Pipeline Safety Management Systems in Peer Review Program Several elements from API 1173 and safety culture are included in peer review topics, whether primary topic or included in information requested. SAFETY CULTURE Safety culture isn’t a specific API 1173 element; but is necessary for implementation

Kate Miller | Director Operations and Engineering Services P: 202-824-7342 | F: 202-824-9085 | kmiller@aga.org  

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