Government Industry R&D Forum March 2005 Pipeline Design & Construction Near Term Focus Future Gaps & Opportunities

DC&O Mission Statement Develop safe, environmentally responsible, cost-effective and reliable solutions for the design, construction, and operation of energy pipelines

DC&O Key Emphasis Areas  Offshore  Onshore and Arctic  Damage Prevention and Protection  Reliability Based Design and Prevention  Integrity Practice Standardization

Technical Programs (2001 – 2004) 1. Prevention of Third Party Damage $1,305k 2. Implementing Integrity Standards $3,060k 3. Reliability-Based Design Alternatives$918k 4. Determination of Max. Safe Surface Loads$994k 5. Leak Detection and Notification$350k 6. Prevention of Critical Pipeline Strains $1,363k 7. Solutions for Adverse Crossings$245k $8,235k

Future Needs  Geological events  Adverse environments  Environmental impacts  Reliable operations

Geological Events Fault creep, landslides, settlement, earthquakes  Traditional approach is excessive conservatism  Reduce cost associated with overly conservative designs and maintenance protocols  Need engineering procedures, methods and models to mitigate effect of pipe-soil interactions Ground movement Stresses as pipe-soil couple responds to displacement Support and loading configurations Material properties Corrosion

Geological Events  Continuity of service  Mitigate life and property threatening incidents Landslides & other large displacements Need methodologies and tools to  Identify high risk regions  Estimate risk of pipeline failure  Preclude extended damage to pipeline operation

Adverse Environments  Reliable Design, Construction and Operation Arctic & Sub-Arctic Regions Need better understanding of terrain influence on pipeline construction & maintenance Need numerical & engineering models  Design, construction & integrity analysis Axial loading due to thermal effects Freeze-thaw cycles of permafrost induce transverse cyclic bending  More aggressive environmental protection standards Maintenance of rights of way

Environmental Impact  Mitigate delays in permitting for new construction  Mitigate environmental concerns over right of way maintenance  Need for standardized design methodologies, simplified information exchange and recommended practices Disposition of hydrotest waters Habitat fragmentation Vegetation management Integration

Reliable Operation  Third Party Damage 32% of all hazardous accidents were direct result of third party damage  9 deaths, 38 injuries, USD 91M Need to demonstrate feasibility of and gain acceptance for feasible methods of right of way management  Real time reliable detection  Viability of available technologies  Critical safety  Economics Need to commercialize viable options

Reliable Operation  Safe Loads For Buried Pipelines Need design and engineering tools to assess atypical loading conditions Need validated method to replace costly full scale geotechnical tests  Shallow buried pipe  Heavy equipment & blasting  Database of physical test results including scaling factors

Future Needs  Four major categories Geological events Adverse environments Environmental impacts Reliable operations