1. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Pipeline Safety Update Pipeline and Hazardous Materials Safety Administration Alan K. Mayberry, P.E. Deputy Associate Administrator for Field Operations September 19, 2011

2. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Overview What is a serious pipeline incident? –PHMSA defines a serious pipeline incident as an event involving a fatality or injury requiring in-patient hospitalization. How many serious pipeline incidents occur each year? What are the causes and consequences of serious pipeline incidents? How does PHMSA respond to serious pipeline incidents?

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9. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration PHMSA Response to Serious Pipeline Incidents Operators must notify the National Response Center after discovery of an incident/accident. Depending on the information reported to NRC, PHMSA will initiate an onsite incident/accident investigation. Depending on the results of its investigation, PHMSA may also initiate an enforcement action –Corrective Action Order (particular pipeline facility hazardous to life, property, or the environment) –Safety Order (condition posing a pipeline integrity risk to public safety, property, or the environment) –Notice of Probable Violation

10. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Recent High Profile Accidents Marshall, Michigan (Federally Regulated) –Major Crude Oil Spill Dramatically Impacted Several Communities in Michigan San Bruno, California (State Regulated) –Major tragedy – Unimaginable Proportions Allentown, Pennsylvania (State Regulated) –Major tragedy – causes still being investigated Excavation Damage Fatalities (State Regulated) –Texas, North Dakota, Georgia – to name a few Yellowstone River (Federally Regulated) –Significant Oil Spill near Billings, MT Bison Pipeline (Federally Regulated) –Newly constructed natural gas pipeline

11. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Marshall, MI Summer 2010

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13. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration San Bruno, CA September 2010

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16. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Allentown, PA February 2011

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18. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Sharpened Focus on Pipeline Safety Transportation Secretary LaHood and PHMSA Administrator Quarterman while not ALARMED, are very CONCERNED Secretary LaHood Hosted a National Pipeline Safety Forum at DOT on April 18, 2011 –Report to America on Pipeline Safety – 6 months –Legacy infrastructure: risk assessment driven major repair, rehabilitation, and replacement or requalification Public Workshops ANPRM: Hazardous Liquids, Gas

19. U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration - 19 - Questions