U. S. Department of Transportation Pipeline and Hazardous Materials Safety Administration www.dot.gov

Pipelines and Risk Management: How Safe is Safe? Jeff Wiese Program Development Director

Framework We are an energy hungry Nation Energy supplies basic human needs and drives physical and economic mobility Our hunger for energy is growing Centers of energy production/importation are few and far between Centers of energy consumption are many and widespread Pipelines connect these centers and move virtually all natural gas and 2/3 of our liquid energy supplies Pipelines present the safest form of transportation for these energy resources

Framework (cont.) Pipelines move much needed, but inherently hazardous energy supplies that have associated risks Risk = Likelihood x Consequence Neither unimportant – but BOTH must be considered Pipeline risks are generally well known and clearly can be successfully managed if systematically managed Risks are trending downward despite growth in use and nearby communities Risk management (intervention) strategies must be customized AND layered E.g., public risks v. industry risks Trending information requires normalization We are working to sharpen the quantitative and geographic focus on pipeline risk and communicate it

What Do We Know About These Risks

PHMSA Goal Safe, Clean, and Reliable Energy Transportation Through Our Nation’s Pipeline System

Key Strategy Manage the Risk and Integrity of Our Pipelines

PHMSA’s Approach Better understand both the likelihood and consequence of identifiable risks Build or improve existing layers of protection customized to mitigate these identifiable risks Use data and risk to focus PHMSA attention and limited resources Use systematic approach to identifying, assessing, and mitigating pipeline risks

PHMSA Uses A Variety of Tools to Ensure and Improve Performance Technical Standards for Design, Construction, and Operation DOT Regulations Risk Management

PHMSA Has Significantly Improved its Ability to Identify Risks Better Understanding of the Environments that Pipelines Traverse Improved Reporting by Operators Statistical Analysis of Events and Causes Analysis of Operator and Individual Pipeline System Performance We are Working to Improve Communication of Risk and Performance

PHMSA Uses a Variety of Intervention Strategies to Prevent Accidents, Mitigate Consequences, and Ensure Reliability Regulations and National Consensus Standards Education and Communication Partnerships – e.g., States, CGA, NASFM, etc Inspections – Programmatic and Field Verification Enforcement Executive Performance Reviews Research and Technology Development

The End Thanks