1. 1 Resources for Integrity Management Marty Matheson, American Petroleum Institute OPS Public Meeting August 8, 2001 Houston, TX

2. 2 OPS Integrity Management Goals l Accelerate integrity assessment of pipelines in high consequence areas l Improve integrity management systems within companies l Improve the government’s role in reviewing adequacy of integrity plans l Provide increased public assurance

3. 3 Our vision is an oil pipeline industry that -- l conducts operations safely and with respect for the environment; l respects the privilege to operate granted to it by the public; and l provides reliable transportation of the crude oil and refined products upon which America and all Americans rely.

4. The History: Improving Record, 1968- 2000 First six years, Annl Avg: 359 spills; 368,000 barrels Last six years, Annl Avg: 169 spills; 146,000 barrels Source: RSPA 7000-1

5. 5 Resources on the Industry Safety Record l The U.S. Oil Pipeline Industry’s Safety Performance (Trench report), 1999 (with update to be issued in the near future) l API Publication 1158, Analysis of DOT Reportable Incidents for Hazardous Liquids Pipelines (1986- 1996) l Annual review of pipeline accidents by ASME B31.4 Committee

6. Based on re-examination of OPS data by B31.4 Committee of the American Society of Mechanical Engineers. “Tank/Pump”: tank farms, pumping stations, all other system parts ASME Causes: Volumes Lost, 1994-99 3rd Party Weather Corrosion Incorrect Operation “Miscellaneous” Equipment Prev. Damaged Pipe Manufacturer Constr/Repair Vandalism Line Pipe: Tank/Pump: 37% 4% 17% 18% 13% 38% 16% 3% 1% 26% 6% 9% 5% 0% 4% - 2% 1% - 100% “Unknown” 7% -

7. 7 An Upcoming Report -- l Oil Pipeline Characteristics and Risk Factors: Illustrations from the Decade of Construction l Authors – u Cheryl Trench, Allegro Energy Group u John Kiefner, Kiefner & Associates l Analyses of data from the Pipeline Performance Tracking Initiative

8. 8 Pipeline Performance Tracking l Incidents down to 5 gallons l 20 cause categories based on ASME l Detail, detail, detail l Over 140,000 miles of pipe or more than 90% of OPS mileage l Infrastructure information u Miles by diameter u Miles by decade of construction, etc.

9. 9 Oil Pipeline Characteristics and Risk Factors l History of pipe and pipeline technology l Data on pipeline mileage by decade of construction l Analyses of OPS incident data (1986-1999) based on the historical perspective of technology and practices and the decade of construction l Findings and recommendations for use in risk analysis

10. Pipeline Mileage by Decade of Construction Decade of construction data from Pipeline Performance Tracking System updated 05/29/01 Survey Miles <1% 2% 7% 13% 22% 23% 17% 9% 7% Compare PPTS 143.6 K miles with: 157 K OPS User Fee Miles (91%) 200 K Estimated Total Miles (72%)

11. All Incidents and Pipeline Miles by Decade of Construction If share of incidents ( ) is higher than share of miles ( ), decade has a high rate of incidents per mile. If lower, decade has a low rate. Causes based on Kiefner & Assoc. classification for ASME B31.4 Committee, 1986-99; line pipe only; excludes incidents where year of installation was unspecified.

12. 12 Findings and Recommendations l General findings l Specific recommendations for pipe u Pre-1930s u 30s and 40s u 50s and 60s u 1970 and later

13. 13 Our vision is an oil pipeline industry that -- l conducts operations safely and with respect for the environment; l respects the privilege to operate granted to it by the public; and l provides reliable transportation of the crude oil and refined products upon which America and all Americans rely.