Transforming Public Awareness into Public Engagement Challenges & Solutions PipelineWatch.com August, 2012 Gary R. White, President & CEO, PI Confluence, Inc.

Challenges An Operator’s Perspective Presented by Raymond Stanford SoCal Gas

Challenge #1 - Perceptions and Relationships Public Perception of Pipeline Operators Negative Press Incidents are sensationalized Credibility Issues General lack of confidence in pipeline operational safety Insufficient Information Belief that that they are not sufficiently informed Establishing Relationships No open lines of communication with stakeholders Need to improve stakeholders’ trust No information exchange environment for stakeholders

Challenge #2 - Public Awareness Communications Messaging Making communications easily recognizable Making messages/materials credible, accessible, personal & simple Delivery A competing environment of multiple messages Non-glamorous information Tiered information to cultivate understanding Multiple timing, delivery and content requirements More frequent updates reinforce the key messages Delivery strategies require improvement Information Exchange Platform to facilitate 2-way exchange Anytime / anywhere access Social Media

Challenge #3 - Public Awareness Audits Program Management is a requirement Documentation is demanded Outreach Demonstration of receipt of the messaging Expectation is verified interaction More than “checking a box” Effectiveness Measurement Demonstration understanding of the messaging Followed by changes in behavior Continuous Improvement

Challenge #4 - The Regulatory Environment NTSB Recommendations 2011 following San Bruno The NTSB noted that PG&E did not notify emergency officials that the accident involved the rupture of one of PG&E’s pipelines, even after they had deduced this to be the case. On June 8, 2011, the NTSB made the following recommendations to address these issues. Specifically, the NTSB recommended that the Pipeline and Hazardous Materials Safety Administration (PHMSA) do the following: Require operators of natural gas transmission and distribution pipelines and hazardous liquid pipelines to provide system-specific information about their pipeline systems to the emergency response agencies of the communities and jurisdictions in which those pipelines are located

Challenge #4 - The Regulatory Environment New Legislation 2011 to comply w/ NTSB Guidance — Not later than 18 months after the date of enactment of this Act, the Secretary shall issue guidance to owners and operators of pipeline facilities on the importance of providing system-specific information about their pipeline facilities to emergency response agencies of the communities and jurisdictions in which those facilities are located. Consultation — Before issuing guidance under paragraph (1), the Secretary shall consult with owners and operators of pipeline facilities to determine the extent to which the owners and operators are already providing system-specific information about their pipeline facilities to emergency response agencies.

Challenge #4 - The Regulatory Environment NTSB Recommendations 2012 following Enbridge pipeline operators do not provide emergency officials with specific information about their pipeline systems. System-specific pipeline information is critical to the safe response to pipeline incidents. “Had Enbridge operated an effective public awareness program, local emergency response agencies would have been better prepared to respond to early indications of the rupture”

Challenge #5 – Going Forward “Compliance” vs. “Doing the Right Thing” The letter of the rule vs. the intent of the rule The recent drivers lead to the proposed rule making AND the message is clear… Many areas to enhance safety… The Primary Focus in the Immediate Future is on Emergency Responders Got to’ be more than merely checking a box

Information Exchange thru PipelineWatch.com Presented by Gary White

Stakeholder Approach All the features you are about to see will be uniquely applied to each stakeholder group in future releases Emergency Responders will be the initial audience Remaining API 1162 stakeholders to follow Excavators – State based Excavator Excellence program to support states requirement to enforce damage prevention Affected Public – Incentive based interactive offering to support ongoing engagement Public Officials – Approach yet to be determined

According to the American Gas Association’s Emergency Response Technical note dated March, 2012, the key issues for a utility to contemplate in structuring its emergency response plan include: What mechanisms can be used to disseminate pipeline safety and emergency response information? What is the best way to prepare emergency responders for an incident? What is the appropriate way to gauge the effectiveness of the safety communications? How can emergency responders be encouraged to participate in training? What types of information can be and is appropriate to share? Each of these requirements is met by PipelineWatch

The American Gas Association’s Emergency Response key issue #1. What mechanisms can be used to disseminate pipeline safety and emergency response information? This issue is addressed by PipelineWatch.com The Immediate Focus is Emergency Responders

“Ask the Operator” Communications

Forum “Blog” Communications

Social Media Communications

Pipeline Safety Related Information

Pipeline Safety Training

The American Gas Association’s Emergency Response key issue #2 and #3. What types of information can be and is appropriate to share? What is the appropriate way to gauge the effectiveness of the safety communications? You Can’t Manage What you Can’t Measure These issues is addressed by PipelineWatch.com The Immediate Focus is Emergency Responders

Pipeline Safety Training

Mapping Identified Sites

The American Gas Association’s Emergency Response key issue #4. What is the best way to prepare emergency responders for an incident? This issue is addressed by PipelineWatch.com The Immediate Focus is Emergency Responders

Real Time Incident Communications

The American Gas Association’s Emergency Response key issue #5. How can emergency responders be encouraged to participate in training? This issue is addressed by PipelineWatch.com The Immediate Focus is Emergency Responders

Beyond the fact that emergency responders typically are the type of person that “Does the Right Thing”… Most paid firefighters have to pay for their own station supplies. These items might include pots & pans, other cooking items and/or recreational items. PipelineWatch.com has been built to track ALL time spent on the site by page Number of activities completed Scores to the comprehension questionnaires These may be used to reward a friendly competition within a given jurisdiction. As an example, Houston has 21 Divisions with each having 3-4 stations. We are currently in discussion regarding the use of such a contest to reward the stations in the division with the most “Proof of Engagement” with a donation of $500 each, just for completing questionnaires on capabilities.

In Closing Funding – Project funding provided by PRCI and industry for the development and testing of the platform only. Future development will be funded by subscription Timing – PipelineWatch.com will be available September, 2012 with phased rollouts beginning w/ Emergency Responders Participation – Operators of all sizes including those with or without GIS may participate on a subscription basis. Marketing – In conjunction with the ongoing Public Awareness communications, PipelineWatch.com will be marketed through print, association with other industry organizations, social media and word of mouth driven by the rewards program

SUMMARY PipelineWatch.com was developed to support the pipeline operators PipelineWatch.com was designed as an information exchange portal PipelineWatch.com was created to prepare for the upcoming regulations requiring enhance interaction with emergency responders PipelineWatch.com includes a public side and configurable private secure access locations that can be opened up by state, by groups of similar operators or by individual operators

Q UESTIONS P ROVIDE THE K EY TO U NLOCKING OUR U NLIMITED P OTENTIAL For additional information