Track # SHAW ENVIRONMENTAL © 2006 The Shaw Group 4171 Essen Lane Baton Rouge LA USA

2 Track # SHAW ENVIRONMENTAL RESTORING TRUST IN PIPELINE SAFETY: The Role Of The Project Team & Field Operations Personnel

3 Track # The Role Of The Project Team & Field Operations Personnel My objective is to review with you the following: What has changed between Pipelines & Stakeholders? The obligations of the parties going forward. What changes need to occur to continue the momentum of stakeholder involvement and the effort towards mutual trust?

4 Track # The Role Of The Project Team & Field Operations Personnel What has changed between Pipelines & Stakeholders? Industry went from my way or the highway! We moved from the “eminent domain stick” to public consultation and mutual gains. Not all operators have bought into this yet. Field operations staff want to be better prepared to interact with the public. Opportunity to develop effective communication tools for the operators and stakeholders.

5 Track # The Role Of The Project Team & Field Operations Personnel What has changed between Pipelines & Stakeholders? Population and pipelines overlapped Urban growth Dig safe legislation One-call systems became so important for people and pipelines to co-exist safely. Merger mania… Changes in the workforce Technological advances Reduced field staff Outsourcing of many operational activities

6 Track # The Role Of The Project Team & Field Operations Personnel What has changed between Pipelines & Stakeholders? Presence in the community was reduced, measures were put in place to continue to operate pipelines and interact with landowners and stakeholders. RP1162 – Public Education Initiatives & Stakeholder Involvement FERC Stakeholder Involvement & Order 609 – Landowner Notification Requirements

7 Track # The Role Of The Project Team & Field Operations Personnel What are the obligations of the parties going forward? Pipeline Operators: To operate a safe pipeline To properly mark & locate their systems Active participant in One-Call organizations For ROW’s to look like ROW’s To be well prepared for an emergency To be committed to public education about pipelines Effective public outreach for their expansion programs Communicate effectively with Landowners & Stakeholders Measure comprehension of public awareness messages What is the feedback thus far?

8 Track # The Role Of The Project Team & Field Operations Personnel What are the obligations of the parties going forward? Landowners & Stakeholders: Understand and Know your Property Rights To utilize One-Call system & ensure your contractors are aware of utilities on property Landowners monitoring dig activities along pipelines To utilize the public education information in a positive manner Open & honest negotiations Opportunities to be more aware of activity –Step up monitoring – recognize & report

9 Track # The Role Of The Project Team & Field Operations Personnel What changes need to occur to continue the momentum of change? Training of Project Team & Field Operations staff To make them effective communicators with Landowners & Stakeholders Effectively communicate risk management to stakeholders Become part of the community Most operator’s desire to increase trust and confidence with stakeholders

10 Track # The Role Of The Project Team & Field Operations Personnel We want to bridge role of the appropriate field personnel as the “face of the Company” in their normal day-to-day contacts with key stakeholders. Program includes Damage Prevention & Public Awareness initiatives to generate an effective Public Outreach Program to build trust and confidence in the Operator. Ultimately building consensus for new projects. Support for Energy Infrastructure

11 Track # The Role Of The Project Team & Field Operations Personnel Established relationships with key stakeholders will assist with the following: Build trust and confidence with Stakeholders and consensus for new Projects. Emergency Response Drills Pipeline Expansion Projects

12 Track # The Role Of The Project Team & Field Operations Personnel To Educate field personnel on the new regulations and Operator’s requirements on public education and safety. To familiarize the Project Team (ROW, Environmental, etc.) with the FERC stakeholder process and tools available to public for pipeline expansion projects. Bridge safety message

13 Track # The Role Of The Project Team & Field Operations Personnel Conclusions To train field representatives on conflict resolution and understanding the landowners’ side of the project and how the Company is viewed by the public. To provide field personnel with the tools they need to accomplish mutual gains and presenting safety measures to stakeholders. To work with local & state officials to ensure that they are appropriately engaging with pipeline operators and asking the right questions.