Gas Processors Association GPA Incident Survey For Onshore Gas Gathering Lines Five Year History For Additional Information Contact: Johnny Dreyer GPA Director of Industry Affairs ph fax

 Industry Trade Association Since 1921 for Gas Processors and Gas Gatherers  100 Corporate Members  67 produce liquids  have onshore gathering lines (est.)  Our Members Don’t Just Process, We Also  Produce Oil & Gas  Gather Gas  Transport Gas  Market Gas  Market Gas Liquids GPA Background

Survey Goals and Content Learn more about miles and associated incidents of gathering operated by GPA members  Results would be aggregated  Onshore Gas Gathering Lines Only  Records Search and Operator Interviews  Five year History of Incidents that Impact the Public  Causes  Consequences 6

Survey Goals and Content  Causes Corrosion Third Party Excavation Damage Operator Excavation Damage Natural Forces, Other Outside Force Damage, Unknown, Other  Consequences Deaths or Injuries Excavations Minor Property Damage ($5,000 - $25,000) Major Property Damage over ($25,000) 6

40 Responses Submitted  38 GPA members  2 non-members Miles of Non-Jurisdictional Gathering 171,628 miles or 95.8% Included 7,593 (est.) or 4.2% Not Included

Incidents by Year

Incident Causes

Consequences

Observations  Causes Main causes of limited incidents in order were corrosion and 3 rd party excavation No other causes had more than two occurrences  Consequences Leading consequences in order were evacuations, minor property damage, major property damage Three injuries and one death reported  Cause vs. Consequences 3 rd Party excavation resulted in more severe incidents…they involved the death and 2 (of the 3) injuries Corrosion incidents generally resulted in much less severe consequences, such as evacuations and property damage

Comparing Incidents  Transmission incident involves the release of gas from a pipeline system and:  Death or an injury requiring in-patient hospitalization, or  Estimated property damage of $50,000 or more Note: Onshore only numbers used  Gathering Incident is an unintentional release of gas due to the failure of a pipeline that impacts one or more members of the general public through:  Death, injury, evacuation, or  Damage in excess of $5,000 to property Note: General Public means members of the community, not including your own company personnel or contractors controlled by your company

Incidents per 1000 miles Transmission Gas gathering

Conclusions  Historical Rates for Incidents Impacting the Public Were 3 to 6 times lower for Gathering When Compared to Transmission even though the reporting criteria for Transmission lines is significantly higher ($50,000 vs. $5,000)  Corrosion and 3 rd Party Incidents are historically the Primary Causes for Gas Gathering Incidents

Why is the gas gathering incident rate for impacting the public so low? Possible answers…  We generally operate in areas that are sparsely populated (or not populated)  Our product (gas) and operating parameters (low pressure, smaller pipe sizes) help minimize the public impact  Good management of our gathering lines – it is in our best interest to operate safely

Survey Says… The survey verifies that….  Comparatively we operate with a lower risk to the public  Corrosion and 3 rd party excavation are our greatest opportunities as we strive to minimize public risk even more