1220 L Street, NW Washington, DC API Standards Development and Pipeline Safety Regulations Restoring Trust in Pipeline Safety Conference November 3, 2006 New Orleans, Louisiana Andrea M. Johnson Senior Standards Associate American Petroleum Institute

1220 L Street, NW Washington, DC API Standards Program API is an American National Standards Institute, or ANSI accredited Standards Developing Organization (SDO) –Open, Transparent Consensus Process –Balance, Due Process –Approved and Published Procedures for Standards Development –Regular Program Audits

1220 L Street, NW Washington, DC API Standards Development Formal process for ANSI designation Not all standards are ANSI designated But all standards and RP’s comply with ANSI approved procedures Balloting, development, stakeholder reviews, record keeping, etc.

1220 L Street, NW Washington, DC API Standards Development Provide industry forum to develop consensus best practices Work collaboratively with other associations Provide opportunity for standards development to improve industry competitiveness Where appropriate, engage in legislative and regulatory advocacy through standards development

1220 L Street, NW Washington, DC API Standards Development Standards improve industry competitiveness by adding value: –Improved safety and reliability –Reduced compliance costs –Reduced procurement costs API has published a brochure entitled “The Oil and Natural Gas Industry’s Most Valuable Resource” describing the value of standardization

1220 L Street, NW Washington, DC API Standards and Pipeline Safety Regulations Pursuant to OMB Circular A119, federal government agencies are encouraged to use voluntary consensus standards for regulatory purposes PHMSA incorporates more than 80 national voluntary consensus standards in its gas and hazardous liquid pipeline safety regulations Representatives of PHMSA participate as members or observers on dozens of these standards committees to ensure that public sector interests in safety and environmental protection are addressed in the standards-making process PHMSA has been included in stakeholder reviews of draft standards

1220 L Street, NW Washington, DC API Standards and Pipeline Safety Regulations The incorporation by reference of voluntary industry consensus standards in the pipeline safety regulations helps to ensure that regulations are kept technically up-to-date, and allows the pipeline industry to use the most updated technical solutions PHMSA calls on the consensus standards process whenever they feel that it can improve the likelihood of reliability or safety PHMSA considers the merits of each standard and sometimes incorporates only portions of standard

1220 L Street, NW Washington, DC API Standards and Pipeline Safety Regulations PHMSA uses the rulemaking process annually to determine whether additional or updated consensus standards can or should be incorporated by reference Recently PHMSA has adopted 12 new standards that address the safety of aboveground oil storage tanks, corrosion protection procedures, and computational pipeline monitoring systems

1220 L Street, NW Washington, DC API Standards and Pipeline Safety Regulations PHMSA and API Participate in the Pipeline Standards Developing Organization Coordination Council (PSDOCC) ANSI ‑ accredited standards developers—including the American Society of Mechanical Engineers (ASME), the National Fire Protection Association (NFPA), National Association of Corrosion Engineers (NACE), etc. Government, Research Organizations, etc. Committed to supporting the development of standards that address the critical trends of improving safety, technological innovation, marketplace globalization, and regulatory reform

1220 L Street, NW Washington, DC Pipeline Standards Developing Organization Coordination Council MOU between PSDOCC and PHMSA Enhances cooperation and coordination Ensures effective and efficient integration of pipeline safety research and development into development and revision of voluntary consensus technical standards Provides forum for coordination of development and maintenance of industry technical standards Annual Regulations Updates

1220 L Street, NW Washington, DC THANKS! For more information contact: API’s online catalog and online publication sales: API’s main phone number Contact: Andrea M. Johnson , or API’s website: