1. 1970’s – King Inquiry 1995 – Maintain Safety Level - HSE 2001 – Precautionary Approach - HSE Neil Shaw/v.1./30 January 2002

3. At October 2001 2001 (km)2007 (km)% IncreaseFTE Req’s Transco view of Construction Staff Rank Order ’07 W/load North West 270 47576%2081 South East 184 425131%802 West Midlands 250 34638%1963 East Midlands 147 343133%1144 North London 196 34174%1265 Scotland 154 314104%1086 York 234 28220%1387 North 114 246115%1408 South 100 232132%1289 East Anglia 160 21937%11010 South West 172 20721%12011 Wales 52 148182%4012 2,034 3,5781508 Neil Shaw/v.1./30 January 2002

4. Ofgem have capped our allowed costs for 2002 – 07 = Incentive to reduce cost= reducing excavations Decommission only where possible ratio target 1:1.1 lay:decommission Use no – dig techniques where possible typically 50 – 60% achieved Neil Shaw/v.1./30 January 2002

5. Safety Precautionary approach applied by HSE under Pipeline Safety Regulations Regulatory Incentive to reduce cost = reduce excavation Aim to minimise disruption by use of non dig techniques Neil Shaw/v.1./30 January 2002