1. Allegro ENERGY CONSULTING Corro sion November 17, 2011 New Orleans, LA © Cheryl J. Trench, 2011 A Tour of Lessons Learned from PHMSA Accident Data Prepared by Cheryl J. Trench President Allegro Energy Consulting For the Pipeline Safety Trust’s 2011 Conference Allegro Energy Consulting P.O. Box 230592  New York, NY 10023 Phone: (212) 787-6923  Fax: (212) 721-9028 ctrench@rcn.com

2. Allegro ENERGY CONSULTING Differentiate!  External versus internal corrosion  Mainline pipe versus station (facilities) piping  Characteristics plus prevention / mitigation  Commodity characteristics  Crude versus refined product or HVL, e.g.  Flow characteristics  Turbulent ?  Operator: “I’ve never seen an internal corrosion release in a line with turbulent flow”  Dead leg? Drain or relief line?

3. Allegro ENERGY CONSULTING Corrosion Location? System Part? Onshore Pipe Station Piping Other Parts Number of incidents, PHMSA 7000-1, 2002-2009, onshore pipe, 5 bbls or more, or death, injury, fire, explosion, water pollution or $ damage>$50K ; other parts: tanks, caverns, offshore Overall, More on Onshore Pipe [245 v 125 in station piping] More Internal Corr. In Stations [105 v 76 in onshore pipe]

4. Allegro ENERGY CONSULTING What about Year-to-Year? External Corrosion Internal Corrosion Onshore PipeStation Piping Number of incidents, PHMSA 7000-1, 2002-2009, onshore pipe, 5 bbls or more, or death, injury, fire, explosion, water pollution or $ damage>$50K ; other parts: tanks, caverns, offshore Internal Corrosion External

5. Allegro ENERGY CONSULTING Which Commodities? For Internal Corrosion, Crude Oil Onshore Pipeline Station Piping Number of incidents, PHMSA 7000-1, 2002-2009, onshore pipe, 5 bbls or more, or death, injury, fire, explosion, water pollution or $ damage>$50K ; other parts: tanks, caverns, offshore

6. Allegro ENERGY CONSULTING Data Mining Team Has Addressed  Facilities Releases:  Special survey on relief lines, drain lines, dead legs, small pipe diameter and tubing, inspection practices  Additions to PPTS Survey (PHMSA, too) : more detail on flow, small piping and tubing, fittings  http://www.api.org/aboutoilgas/sectors/PPTS/upload/200 9_5PPTS_Operator_Advisory_Facilities_OTC_Final.pdf http://www.api.org/aboutoilgas/sectors/PPTS/upload/200 9_5PPTS_Operator_Advisory_Facilities_OTC_Final.pdf  Corrosion on mainline pipe and in facilities:  http://www.api.org/aboutoilgas/sectors/PPTS/ppts- advisories.cfm [coming in Dec. 2011] http://www.api.org/aboutoilgas/sectors/PPTS/ppts- advisories.cfm

7. Allegro ENERGY CONSULTING Sidebar: Internal Corrosion and Canadian Crude  From PHMSA accident data  Which lines with interconnections to Canadian crude have had internal corrosion releases?  From Energy Information Administration  Form 814; shipment-by-shipment crude imports  Which refineries are getting Canadian crude?  From pipeline industry info  How would it get there? Interconnections for crude oil transport, including storage hubs ANSWER: NOT ONE

8. Allegro ENERGY CONSULTING Sidebar [cont’d]  Checked with operator for each crude oil internal corrosion release in an appropriate state  Each one transporting domestic crude (Williston Basin, CO, KS, OK)  FYI, operators took mitigative action  One line now has a connection to AB crude (via Cushing) but did not at the time of release (2004) No internal corrosion crude releases on U.S. mainline pipe have involved oil sands crude oil

9. Allegro ENERGY CONSULTING Observations on Tool Data: More Complicated than You’d Think!  Tool runs for point of release recorded since 2002  Tool type, year of run  Have previously compiled tool data by cause  Right tool?  Timing?  Previously damaged pipe, e.g.: don’t know if tool run before or after damage  External corrosion: found that many properly called, but had already turned into weeper by excavation  Signature recognizable? Tool smart enough?

10. Allegro ENERGY CONSULTING 82% Improvement in ROW Record for Pre-1950s Pipe Number of Releases per Year External Corrosion Internal Corrosion Seams, Welds