1. Christina Sames Vice-President, Operations & Engineering
AGA’s 2013 Focus in O&E
Christina Sames
Vice-President, Operations & Engineering
Gas Utility Best Practices Kickoff
Los Angeles, CA

2. Update on O&E Activities
Pipeline Safety Regulatory Update, including Cyber Security
Raising the Bar on Safety
Safety Information Resources
Peer to Peer Evaluations pilot
2013 Discussion Groups
Public Awareness,
Contractor Management and Quality
Odorization
GIS/GPS and Work Management
Damage Prevention
Technical Training & Knowledge Transfer
Key Committee initiatives
In addition to the Commitment to Enhancing Safety, the AGA Board of Directors early last year adopted a Safety Culture Statement that lays out the expectation that all AGA members, as well as their contractors and suppliers, are expected to place the highest priority of safety. You can find the Safety Culture Statement on AGA’s website.
We are also actively engaged with other stakeholders in an effort to improve safety
Finally, we have a number of programs and efforts to improve information sharing.
This includes
Best Practices programs that allows companies to benchmark themselves against others and identify best practices to address specific issue.
An Executive Leadership Safety Summit held by the AGA Board of Director’s Safety Committee to discuss lessons learned from incidents and innovative initiatives to improve safety
A number of safety publications, including an annual employee and vehicular safety study
A Safety Information Sharing Initiative with all of the pipeline trade associations in the US and Canada that is looking at ways other sectors are sharing information
And an SOS program where companies can seek answers from other companies on issues they are trying to address.
This is not an all inclusive list

3. Pipeline Safety Path Forward
Success requires that stakeholders
agree on the Path Forward
Low gas prices provide opportunities to replace or enhance infrastructure without a significant negative impact on the customer

4. Roadmap for the Path Forward
Pipeline Safety Act of 2011
NTSB Safety Recommendations
Secretary LaHood Call to Action
AGA’s Commitment to Enhancing Safety
INGAA’s Integrity Management Continuous Improvement (IMCI)
Five good documents. There are similarities, but they were developed for different purposes, are not aligned, present different messages and use different languages.

5. Pipeline Safety Act OF 2011
AGA views the Act as the definitive template for the pipeline safety path forward
Key elements:
MAOP verification
Modification to grandfathering regs
Automatic/Remotely Controlled Valves
EFVs beyond single family homes
Number of reports: Damage prevention, IM, leak detection, cast iron pipe

6. NTSB San Bruno Recommendations
Delete grandfather clause. Require all pre gas transmission lines be subjected to hydrostatic pressure test with spike test
Manufacturing & construction defects can only be considered stable if line has been subjected to a post-construction hydrostatic pressure test of at least 1.25 times MAOP
Require ASVs or RCVs in HCAs & class 3&4
Require all transmission lines be configured to accommodate ILI tools
The NTSB accepts alternative regulatory actions that have consistent outcomes compared to their recommendations

7. Secretary LaHood’s Call to Action
Focused on repair, rehabilitation and replacement of lines “no longer fit for service”
Interested in replacement of cast iron, bare steel, older plastic
Numerous meetings with industry CEOs, AGA’s Board, NARUC, others. Currently happy with AGA and it’s members because “You are doing what you said you would do.

8. The Path Forward
Successfully moving forward reauthorization, NTSB recommendations and the Secretary’s Call to Action will require:
Extensive stakeholder discussions
Expedited rulemaking
Compromise
Billions of dollars in capital expenditures
Transparency for the public
Will we get this done?
Yes, but it will be more difficult that anyone imagines and will take several years and possibly decades to accomplish.

9. Big Challenge for Membership
Transmission MAOP Verification
By June 15, 2013: Operators must confirm MAOP records of transmission pipelines and submit to DOT information on segments with insufficient records for established MAOP. The transmission operators annual report is the vehicle by which PHMSA will collect this information
For pipelines with insufficient MAOP records, DOT must:
Require operator to reconfirm a MAOP expeditiously
Determine appropriate actions until MAOP confirmed
NTSB recommendations are vastly different from the Act

10. Pipeline Safety Act OF 2011 MAOP Grandfathering Rulemaking
DOT must issue regs for conducting tests to confirm material strength for untested gas lines in HCAs >30% SMYS by 7/13. DOT must consider safety testing methods, including pressure testing, ILI and methods determined equally effective.
AGA members have an estimated 6,000 miles (14%) of pipe that will have to be hydro tested, have reduced pressure or be abandoned.
DOT may not follow legislation. May include all transmission lines (NTSB Recommendation). Currently doesn’t consider ILI equally effective

11. Other Challenges Installing RCVs and ASVs on transmission lines
Cast iron, bare steel replacement & management
Vintage plastic pipe replacement & management
IM on transmission lines outside of HCAs
DIMP (to the satisfaction of state regulators), TIMP
Enhancing emergency response
Increased expectations from gov’t,
Increased fines, penalties, public scrutiny

12. Cybersecurity Natural gas industry is a confirmed target
100% certainty that our control systems can be hacked. Time to detection – Over 400 days
No serious damages or disruptions yet (but hackers may just be waiting)
AGA has been actively involved in cybersecurity for over a decade and has increased its efforts
Letter to all members identifying actions companies can take to reduce the threat of a cyber attack
In October, AGA Board approves Cybersecurity Action Plan (see following slide)
We are expecting an executive order to be issued by President Obama

13. Cybersecurity Action Plan
Identify gaps in vulnerability assessment, current standards; fill gaps
Workshop of operations technical experts to determine potential operational consequences of a successful cyber attack
Sharing of best practices
Educate Congress/others on our unique industry & steps we have taken to ID threats, reduce risk of cyber attack
Create Cybersecurity Task Force to lead efforts
Other actions: Operators have been encouraged to register for access to US-CERT, the Cybersecurity Evaluation Tool (CSET), review the TSA Pipeline Security Guidelines

14. AGA Actions to Raise Bar on Safety
Commitment to Enhancing Safety
Engagement: DOT, NTSB, NAPSR, NARUC
NARUC – Emphasis on innovative rate mechanisms
NAPSR – Pipeline safety coordination
Information Sharing
Best Practices programs
Events, inc. Exec Leadership Safety Summit
Publications
Safety Information Sharing Study
SOSs
Safety Culture statement
Peer-to-Peer review pilot
In addition to the Commitment to Enhancing Safety, the AGA Board of Directors early last year adopted a Safety Culture Statement that lays out the expectation that all AGA members, as well as their contractors and suppliers, are expected to place the highest priority of safety. You can find the Safety Culture Statement on AGA’s website.
We are also actively engaged with other stakeholders in an effort to improve safety
Finally, we have a number of programs and efforts to improve information sharing.
This includes
Best Practices programs that allows companies to benchmark themselves against others and identify best practices to address specific issue.
An Executive Leadership Safety Summit held by the AGA Board of Director’s Safety Committee to discuss lessons learned from incidents and innovative initiatives to improve safety
A number of safety publications, including an annual employee and vehicular safety study
A Safety Information Sharing Initiative with all of the pipeline trade associations in the US and Canada that is looking at ways other sectors are sharing information
And an SOS program where companies can seek answers from other companies on issues they are trying to address.
This is not an all inclusive list

15. Overview of Peer to Peer Evaluations
In response to interest expressed by several of our executives on the Board of Directors
Each company takes turns being evaluated by peer companies on a particular topic to determine opportunities for improvement
Topic(s) and evaluation protocols and criteria used will all be determined by participating companies
Is different from formal inspections/audits, but can be even more effective in value of information exchanged
Meeting being held at AGA on Feb 7th to identify how this will all be structured
The pilot will likely evolve into a more formal program in 2014, similar to what is being done in nuclear and electric
14 companies are expressing interest (see next slide)
Refer to handout for additional details

16. Discussion Groups Damage Prevention (A. Lu)
GIS/GPS and Work Management Systems (N. Assing)
Contractor Mgt. and Quality (A. Lu)
Odorization (Kate Miller)
Public Awareness (Jake Rubin)
Technical Training & Knowledge Transfer (Aaron Johnson)
Quarterly sessions by webinar, usually with 1-2 presenters
Easy way to exchange information with other members

17. Key Committee Projects in O&E
Commitment to Enhancing Safety
White Paper on Soft Tissue Injury Prevention and Management Guidance
White Paper on Aldyl-A
Mechanical coupling catalog
Annual employee safety statistical report
Vehicular Safety survey
Various Measurement publications
Study for Grandfathered Pipe
See O&E 1-pager, listing various initiatives/projects

18. Major 2013 Events in O&E Best Practices Roundtables
Transmission pipeline workshop – March in Chicago
Spring Committee meetings – May 20 – 21, Orlando
Operations conference and Exhibit – week of May 20 in Orlando
Executive Leadership Safety Summit – Nov 10-11, 2013 in Washington, DC
Fall committee meetings – week of Sep 9 in LA
Emergency Response forums, coordinated by AGA and conducted by Regional Gas Associations
More to be announced

19. Find s Online
Christina Sames