1. Office of Pipeline Safety Hazardous Liquid Pipeline Integrity Management July 23 - 24, 2002 Houston, Texas Welcome

2. Office of Pipeline Safety Presentation Objectives Review meeting agenda Review basic ground rules Provide OPS’ current perspective on hazardous liquid integrity management °Our goals °Why this approach now °Our objectives °What have we accomplished °What’s next °What else is going on at OPS

3. Office of Pipeline Safety Agenda July 23, 2002 8:40 am: Integrity Management - Our Current Perspective 9:15 am: Impacts of Integrity Management to Date 9:30 am: Segment Identification Inspections - What Did OPS Learn?

4. Office of Pipeline Safety Agenda July 23, 2002 (cont.) 10:20 am: Integrity Management Rule Enforcement 10:40 am: National Pipeline Mapping System and Integrity Management 11:10 am: Comprehensive Inspection Approach 11:40 am: Question & Answer Session

5. Office of Pipeline Safety Agenda July 23, 2002 (cont.) 1:30 pm: Comprehensive Inspection Protocols - Panel 4:00 pm: Question and Answer Session

6. Office of Pipeline Safety Agenda July 24, 2002 8:10 am: Ensuring Success in Integrity Management 9:10 am: Notification Submission and Review 9:50 am: FAQs - What You Need to Know About Integrity Management

7. Office of Pipeline Safety Agenda July 24, 2002 (cont.) 10:20 am: Question and Answer Session 11:20 am: Summary and Path Forward

8. Office of Pipeline Safety Agenda July 23-24, 2002 (cont.) Demo’s & Assistance Available for: National Pipeline Mapping System Implementing Integrity Management Web Site Grand Ballroom C Today 1:00 pm to 5:00 pm Tomorrow 8:00 am to 12 noon

9. Office of Pipeline Safety National Pipeline Mapping System General GIS Issues OPS pipeline data collection efforts OPS' "GIS-lite" application (Offline Mapping Application) °Demo & downloading Internet software °Data incorporation & software limitations Details of HPA and OPA data changes based on 1990 vs. 2000 Census CNW changes and data availability OPS Internet Mapping Application development plans

10. Office of Pipeline Safety Basic Ground Rules Copies of presentations will be available at: http://primis.rspa.dot.gov/iim Question and answer format and follow-up through FAQ’s °Please state name and affiliation °Questions only – this is not a promotional opportunity °Cards are available, but priority to spoken Attendance list is not available

11. Office of Pipeline Safety Hazardous Liquid Pipeline Integrity Management OPS’ Current Perspective

12. Office of Pipeline Safety Integrity Management Goals Accelerate assessments of lines in High Consequence Areas (HCAs) Promote rigorous, systematic management of pipeline integrity Enhance governmental oversight of pipeline company integrity plans and programs Increase public assurance in pipeline safety

13. Office of Pipeline Safety Why This Approach Now? Pipeline testing is important, but alone it is not enough Recent high consequence accidents might have been prevented by better integration of information Risk Management demos provided insight into solution: improved management systems Need to address all risks in a comprehensive, but balanced manner Technological and interpretative advances

14. Office of Pipeline Safety Integrity Management Objectives Integrity Management Program development process has been extremely transparent IMP development procedures are available via the internet: http://primis.rspa.dot.gov/iim IMP oversight objectives: °Clarity of regulatory expectations °Nationally consistent oversight program °Quality of results

15. Office of Pipeline Safety Clarity of Regulatory Expectations Implementing Integrity Management Website °Flowchart of Operator Actions for Compliance °Process Steps for Compliance °Final Rule °Implementation Timeline °Glossary of Terms °Frequently Asked Questions

16. Office of Pipeline Safety

17. Office of Pipeline Safety

18. Office of Pipeline Safety

19. Office of Pipeline Safety Nationally Consistent Oversight HQ/Field Partnership for Program Development Standardized Inspection Protocols Detailed Field Guidance for Inspectors Field Testing & Reset Meetings Aggressive Training Schedule for Federal and State Inspectors IT Solutions: Team Collaboration

20. Office of Pipeline Safety Quality of Results Systematic Approach National Consistency Team Approach for Balanced Perspective Structured Enforcement °NOPV for serious issues °NOA to foster continuous improvement

21. Office of Pipeline Safety What Have We Accomplished? Researched, drafted and finalized rules covering all hazardous liquid pipelines Designed systematic approach to oversight Designed and developed the Integrity Management Website and IMP Team collaboration application Conducted initial public meeting in August 2001

22. Office of Pipeline Safety What Have We Accomplished? Developed consensus FAQ’s to address public and industry questions Developed “Quick Hit” inspection protocols and guidance for inspectors Field tested, adjusted, and trained our Federal team Performed “Quick Hit” Inspections covering 85% of the Nation’s hazardous liquid pipelines in 90 days

23. Office of Pipeline Safety What Have We Accomplished? Developed enforcement actions to address violations or inadequacies Developed comprehensive inspection protocols and guidance for inspectors Developed IMP training for all Federal and State inspectors Began IMP training programs Recruiting new senior inspectors

24. Office of Pipeline Safety What’s Next Large Liquid Operator IM Inspection °Comprehensive inspections start next month °Projecting completion of all large operators by early 2004 Small liquid operator IM inspection °Start next Spring °Strong role for our State partners Natural gas IM rulemaking status Integrity Management training Obtaining expert technical assistance

25. Office of Pipeline Safety What Else is Going on at OPS Improved Data and Analysis °Incident report and annual reports °Integration of OPS’ databases °Integration with State partners Communications °CATS – Community Assistance and Technical Services °Recommended Practice on public education and awareness – see: http://www.api.org/pipelinepublicawareness/ °Pipeline 101 °First Responder Training

26. Office of Pipeline Safety What Else is Going on at OPS O&M and New Construction Inspections Accident Investigation & Follow-up Operator Qualification Oversight Pipeline Security °Development of standards °Oversight on preparedness °Regional security drills Reinvigorated R&D Program Damage Prevention & the CGA