1. RAILROAD COMMISSION OF TEXAS Chairman David Porter Commissioner Christi Craddick Commissioner Ryan Sitton September 15-17, 2015

2. RAILROAD COMMISSION OF TEXAS Kari French, Director Oversight and Safety HB 2982 Workshop

3. What does HB 2982 do? Specifically, the bill amended the State laws delegating to the Railroad Commission the authority to regulate pipeline safety for intrastate pipelines. 3

4. Did you know? The Commission is authorized to regulate transportation and gathering facilities in Class 1 and rural locations based on risk. 4

5. The Pipeline Safety Inspector Will… Investigate an accident, an incident, a threat to public safety, Or a complaint related to operational safety, Require an operator to submit a plan to remediate an accident, incident, threat, or complaint. 5

6. The Oversight and Safety Division may: Require reports necessary to the Commission Investigate an accident, an incident, a threat to public safety, Or a complaint related to operational safety;

7. The Oversight and Safety Division may: Require operators to provide information to the Commission Determine risks presented to the public safety

8. There is no rule currently… The Commission has not adopted or proposed a rule on the regulation of Class 1 and rural gathering pipelines and facilities. 8

9. Survey of Class 1/Rural Gathering Results Over 600 responses. Majority of pipe = Steel >500 psig MAOP - 69.3% <30% SMYS -57.4% Class Location Surveys determine whether subject to regulation under 49 CFR Part 192 (gas) or 49 CFR Part 195 (hazardous liquid) 83.6%

10. Leak surveys conducted = 62.4% Cathodic Protection = 57.9% Patrol/surveillance on system = 77.3% External corrosion control/monitoring = 55.9% NO Internal corrosion control/monitoring = 63.8% NO Atmospheric corrosion control/monitoring = 54.8% NO Survey of Class 1/Rural Gathering Results

11. System pressure tested = 78.5% – Post construction = 93.0% – Integrity Assessment pressure testing = 15.9% – Integrity Assessment methodology other than pressure testing? NO = 89.2% Pressure limiting / regulating equipment = 73.9% Rural Gathering Results – Cont’d

12. Valve maintenance = 66.4% Line markers = 90.7% Gas odorized = 90.6% NO Damage Prevention program = 60.1% Member of Notification center = 86.5% Chapter 18 program = 55.3% NO Rural Gathering Results – Cont’d

13. Emergency Plans / Procedures = 60.4% – Community Liaison / Emergency responder activities = 69.7% NO – Public Awareness = 70.0% NO Rural Gathering Results – Cont’d

14. Different types of facilities within 660ft of system – Day care = 14.7% – Hospital = 11.8% – Nursing Home = 2.9% – Other = 70.6% – Prison = 1.0% – Industrial Complex = 4.7% – Airport = 0.9% – Occupy Public Record of Highway ROW = 22.1% – Cross Public Road or Highway = 61.7% – Cross any type of body of water = 13.3% Rural Gathering Results – Cont’d

15. Other Considerations? Flow Lines? Point of Measurement? Lines of Vacuum? 15

16. Questions?

17. Contact information 17 1701 N. Congress Ave. P.O. Box 12967 Austin, TX 78711-2967 Kari French, Director Oversight and Safety Division Office (512) 463-8559 Fax (512) 463-7962 Email: kari.french@rrc.texas.gov