U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 2010 Pipeline Safety Trust Annual Conference New Orleans, Louisiana November 4-5, 2010

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Introductions Administrator – Cynthia Quarterman –Chief Counsel – Biz Scott Associate Administrator – Jeff Wiese –Deputy Associate Administrators Linda Daugherty - Policy and Programs Alan Mayberry – Field Operations Damage Prevention / PIPA Team –Annmarie Robertson –Sam Hall

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Introductions (cont.) Community Assistance and Technical Services –Christie Murray – National CATS Coordinator –Karen Gentile – Eastern Region –John Jacobi – Southwest Region –Harold Winnie – Central Region

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Goals and Pathways Common Goals –Safe, Clean, and Reliable Energy Pipelines Different Pathways –Everyone Thinks They Knows the Answers Lots of Opinion/Hyperbole, But Little Agreement It’s Been a Tough Year for Pipeline Safety –Long Term Trends are Very Positive (next), But… –Reauthorization is Afoot – More in a Moment –Several Unrelated, High Profile Accidents –National Elections / National Mood Polarize Debate

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

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

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Recent High Profile Accidents Deepwater Horizon –Not Involved – Honest – Don’t Draw Parallels Marshal, Michigan –Major Crude Oil Spill Dramatically Impacted Several Communities in Michigan Romeoville, Illinois –Followed Closely on the Heels of Marshal San Bruno, California –Major tragedy – Unimaginable Proportions What Do These Have in Common? –Perhaps Very Little – NTSB Will Determine

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Pipeline Safety Reauthorization Andy Black - AOPL Jennifer Esposito – House T&I Rick Kessler - PST Christina Sames - AGA Jeff Wiese – OPS/PHMSA

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Pipeline Safety Reauthorization The Quadrennial Head to Toe –Seven Hearings So Far – One to Go Primary Ingredients for Success –Taking Care of Congressional Mandates –Taking Care of Oversight Agencies NTSB, OIG, and the GAO –Moderate Temperatures Among Stakeholders –Lack of High Profile Pipeline Accidents

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Legislative Proposals – To Date Administration’s Proposal – More (next) Senate –Rockerfeller/Lautenberg –Boxer/Feinstein House –Schauer –Speier

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Administration’s Proposal Key Themes –More Inspection –Stronger Enforcement –Fewer Statutory Exemptions –Special Services - Pay as You Go Special Permits Major Construction Projects –Publicly Conducted Studies Expansion of HCA’s or Alternatives

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Policy Initiatives and Priorities Data Driven, Risk Informed & Transparent –Operator Pilot & Operator Pages –Long Term Plan New Construction Oversight Special Permits – Performance Matters Public Awareness Oversight Accelerating Enforcement Completion and Launch of PIPA Best Practices Supporting State Damage Prevention Improvements Gaps, Overlaps, and Alignment Study

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Regulatory Update Major Rulemaking Efforts & Status –Distribution Integrity Management Program (8/2011) –Control Room Management (Fall 2011) NPRM Proposal to Accelerate Implementation –ANPRM Questions on Hazardous Liquid Requirements –Upcoming Regulatory Actions Low Stress HL’s – Phase 2: Final Rule in 2010 Excavation Damage Enforcement: NPRM in 2010 ANPRM on Natural Gas Requirements Minor Rulemaking & Miscellaneous –“One Rule” & Advisories – Emergency Plans, Federal Response Plans, and Data Reporting (soon)

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Non-Regulatory Initiatives Update Damage prevention –Common Ground Alliance & Regional Partners –State Damage Prevention Assistance Program –State Damage Prevention Characterization Tools –Technology Improvements to One-Call Process –811 Promotion Campaign Public Communications and Awareness Stakeholder Communications, mapping & ET ROW Encroachment – PIPA Completion/Launch Emergency responders – training and partners Research and development

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Concluding Remarks / Q & A For more information on PHMSAFor more information on PHMSA – For more information on Pipeline SafetyFor more information on Pipeline Safety – Thanks for your time & enjoy the week(end)!Thanks for your time & enjoy the week(end)!