Pipeline Safety New Orleans Nov. 18, 2011 Getting to Zero

Not Waiting to be Told: Oil Pipeline Industry Improvement Efforts November 18, 2011 New Orleans, La.

Environmental and Safety Gains Since ‘90s, a record of coordinated, focused improvements Data tracked and priorities adjusted Pipeline Performance Tracking System Real progress made; the numbers show …

Reduced Spills, Volumes (3-Year Average Ending in Year Shown) We ask ourselves: Is this a trend reversal, or a temporary plateau?

Getting to Zero Industry leadership – get the curves headed in the right direction Two dozen areas of improvement identified The good news: most initiatives already under way Seven Areas identified for more intense focus and development by Executive and Subject-Matter Experts

R&D / Enhanced Technology Pipeline Research Council International Individual company efforts significant – better coordination Assessing gaps and improving funding Renewing focus on results that can be implemented and make a difference Priorities are: Enhanced damage detection Improve ILI capabilities ID and repair ERW seam defects Leak detection and data integration

Leak Detection First focus on the large failures – Recognition – Response – Reporting Enhance systems to prioritize SCADA notifications/alerts Continue efforts to detect small releases

Enhanced Data Integration Develop industry approach for consistent data generation, collection, processing, integration Promote efficient and effective decision-making Provide means for sharing learnings from data combinations Identify and address high risk issues

Shared Practices & Learnings Build on what is already working – API Pipeline Conference – Pipeline Information Exchange (PIX) – PPTS Advisories Partner with gas industry to see how other industries learn from each other Develop real-time learning platform Promote learnings beyond workshops More peer-to-peer learning Employee and contractor safety – mirror PPTS approach

Damage Prevention Excavation damage is leading cause of death and injury Develop model One Call provisions Promote strong damage prevention laws and enforcement Engage directly with excavator groups Develop education materials for other stakeholder groups Coordinate efforts and learnings with Common Ground Alliance (CGA)

Strategic Planning Structured approach to focus on the right things – Plan today to be working on tomorrow’s problems Develop a sustainable process Include input from key stakeholders Prioritize and coordinate improvement efforts

External Communications Communicate Industry challenges, successes, progress, and plans Listen - understand the perspectives, concerns, and ideas of others Discuss solutions with other stakeholders Improve responsiveness to concerns Sustained versus intermittent communications with stakeholders

Challenges Reaching all operators Differing sizes, ages, construction, and priorities among participants How to raise the bar for the entire industry

In Conclusion … Our intention … – Don’t wait to be told; lead ourselves to further improvement – Avoid merely reacting to regulations and recent events Our goal … – Achieve real, measurable, sustainable reduction in spills and injuries – Drive to zero Our plan … – Be focused – Listen and adjust - Look forward to more interactions with PST and others who put pipeline safety first