A Framework for Your Pipeline Integrity Program

2 A Few Thoughts Before Beginning l This rule is new to the pipeline industry although many of the concepts are not l Many have struggled though the rule’s development l A consistent approach can help

3 Why an Industry Standard? l A systematic approach -- u focuses on risk reduction as a goal u is more effective u is called for by the rule l Provides a framework u for operators in developing their programs u for inspectors in auditing integrity programs l Provides additional “meat”

4 API 1160, “Managing System Integrity for Hazardous Liquid Pipelines” l Developed under ANSI consensus procedures l Work group included -- u Pipeline operators u OPS regulatory and enforcement u Inspection service providers u Metallurgists, engineers, corrosion specialists, and more

5 API The Process l Drafted by Work Group l Reviewed by peers u Pipeline operators u ASME B31.4 members u Pipeline safety advocates u Environmental interest groups l Comments resolved l Aligned with Final Rule on integrity management

6 API Scope l Hazardous liquid pipelines l Not limited to pipelines regulated in Part 195 l Not limited to pipelines in high consequence areas l Not limited to line pipe l PROVEN INDUSTRY PRACTICES

7 API Contents l Intro, Scope, References, Definitions l Integrity Management Programs -- Overview l High Consequence Areas u Identification u Using HCA info u Affecting HCAs u Documenting HCA info

8 API Contents l Data Gathering, Review and Integration l Risk Assessment Implementation l Initial Baseline Plan Development and Implementation l Mitigation Options l Revision of the Plan l Pump Stations and Terminals l Program Evaluation l Managing Change

9 API Appendixes l Anomaly Types, Causes and Concerns l Repair Strategies l Standard Data Fields u For tracking release information u For tracking system information

10 What the standard is NOT -- l A cookbook for compliance with the rules l A simplified approach to risk or integrity management

11 What the standard IS -- l An aid in developing the framework for your integrity management program l Guidance on the aspects of integrity management you need to be thinking about l A means to make your program comparable to other company programs l A set of standardized measures allowing you to compare your performance with your peers, if you choose to l AND MORE

12 Highlights -- Identifying HCAs l It’s the first thing you have to do l You are partially dependent on OPS but there are some caveats u Population -- Straightforward u Navigable waters -- Straightforward u USAs -- Not so simple u Timing may become an issue l Some guidance in the standard

13 Highlights -- Data l Identifying data sources (lots of examples) l Identifying data needs (different from what you have maybe) l Establishing a common reference system -- THE key to integration

14 Highlights --Risk Assessment l A primer that is specific to the pipeline industry l Defines the characteristics of a sound approach u Structure u Adequacy of resources u Experience-based u Predictive u Uses appropriate data u Importance of feeback mechanisms

15 Highlights -- Baseline Assessment l A tutorial on ILI -- u Anomalies and defects u Internal inspection and testing technologies u Tools u Intervals l A tutorial on hydrostatic testing u Value and limitations u Intervals

16 Highlights -- Baseline Assessment l What should you do with what you find? u What will be your strategy for responding to anomalies identified u Repair overview u Mitigation options -- lots of them

17 Highlights -- Program Evaluation l Recommends specific performance measures l Defines a way to look at the value and utility of performance measures, i.e. methodology l Comparisons u Internal u External u Audits

18 Final Thoughts l The Standard u The standard is not typical u The standard significantly raises the expectation bar, probably more then the rule itself does l The Rule u Requires leak detection capability in the rules for the first time u Is tough

19 To Get Your Copy of the Current Draft --