1. Office of Pipeline Safety Impacts of Integrity Management James K. O’Steen Deputy Associate Administrator for Pipeline Safety July 23, 2002

2. Office of Pipeline Safety We’ve Had A Plan for Continuous Improvement Over the last 10 years we’ve added many dimensions to the pipeline safety program °Damage Prevention °Risk-Based, Comprehensive Integrated Approach – Integrity Management °Environmental Protection °Security/Local First Response Involvement

3. Office of Pipeline Safety 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 e DamagePrevention(DP)DamagePrevention(DP) EnvironmentEnvironment Risk Based ComprehensiveIntegratedApproach ComprehensiveIntegratedApproach Security/Local First Response InvolvementSecurity/Local Involvement 1981 ------Standard Pipeline Inspection Program –------On-going Fire Service Training USA Workshops SCADA Study WA Pilots Electronic Town Meetings Local RM Prospectuses Y2K Prep DOE Agreement OPS Community Assistance - $3.5M National Pipeline Mapping System Unusually Sensitive Areas Regulation New Tank Standards Build Water & Eco-Maps Mapping Quality Team EPA Agreement FEMA Natural Disaster Study Oil Pollution Act Implemented Advisory Committee System Integrity Inspections Risk Management Demo Program ReauthorizationIntegrity Management Rulemakings Risk Assessment Prioritization Pipeline Safety Summit Risk Assessment Quality Teams Damage Prevention Quality Team Joint Conference w/NTSB DP Regulation One Call Requirement TEA-21 OPS Community Assistance - $3.5M TIMELINE TO INCREASED SAFETY Common Ground Alliance One Call Study Dig Safely 9/11 Security Planning Prep Exercises (w/Coast Guard & EPA)

5. Office of Pipeline Safety Integrity Management Good process °Involves all stakeholders °Uses consensus standards °Good communications °Comprehensive web site resources ­Open data base ­Protocols ­Frequently Asked Questions °Continuous improvement process °Enforcement – tough & fair, part of continuous improvement process

6. Office of Pipeline Safety Next Steps in Continuous Improvement Fill regulatory gaps – Gas Integrity Management Improve operator and regulator qualifications Reduce pipeline excavation damage Make national oversight uniform and share responsibility with States

7. Office of Pipeline Safety Next Steps in Continuous Improvement Plan Improved data Establish meaningful performance measures Make better use of technology Increased security planning Clear the agency record

8. Office of Pipeline Safety Clear The Agency Record One year ago 65 mandates and recommendations were outstanding Substantially completed work on half Strong regulatory program important for safety, confidence and future growth

9. Office of Pipeline Safety Building Public Confidence Improve the safety of the national pipeline system Have effective Federal and State Regulators Implement effective damage prevention, integrity management and operator qualifications programs Communicate effectively with stakeholders

10. Office of Pipeline Safety President’s Energy Policy We must enhance the safety, integrity and public confidence in the national pipeline system in order to build the new pipelines necessary to meet the nation’s energy needs.