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

Pipeline Safety Trust Annual Conference New Orleans, Louisiana

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Pipeline Issues: Routing, Reversals, Conversions

Alan Mayberry November 21, 2013

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

Agenda

•  Underlying principles for safety

•  What are we talking about?

•  Routing

•  Reversals

•  Conversions

•  Product Changes

•  Construction

•  Forward look

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

Underlying Principles

•  The pipeline operator is ultimately responsible for their infrastructure:

–  It is the responsibility of pipeline operators to understand and manage the risks associated with their pipelines.

•  The regulator can influence operator performance by setting standards

•  PHMSA also strives to impact operator performance beyond mere compliance with the regulations

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

What are we talking about?

•  Shifting supply sources for oil and natural gas results in construction of new pipelines, reversing the flow on existing pipelines and changing product type in pipelines.

•  The supply shift has been caused by the increased importation of Canadian crude and domestic production (shale plays).

•  PHMSA has been monitoring this condition relative to pipeline safety and potential new policies needed.

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

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

Routing and Siting •  Routing responsibility is:

–  Federal Energy Regulatory Commission (FERC): Interstate gas pipelines, Liquefied Natural Gas Plants

–  State/Local Government: Hazardous Liquid (crude oil, refined products)

•  PHMSA’s role is pipeline safety

–  Participation in public meetings (by our “CATS” people)

–  Inspection and enforcement of pipeline safety regulations

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

Pipeline Reversals •  Not specifically addressed in 49 CFR Parts 192 & 195, however

operators must consider threat impact on all operations e.g.:

–  Operations and Maintenance (O&M) Plans/Manual •  Integrity Management Program

•  Over-pressure protection and surge pressures

•  Control Room Management

•  Operator Qualification

–  Spill Response Plans

•  “Grandfathered” gas pipelines, need to review method used to establish maximum allowable operating pressure (MAOP):

–  MAOP based on pressure gradient or over 72% SMYS

•  Special permit pipelines will be addressed for renewal

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

Service Conversions

•  Addressed in Gas (192.14) and Hazardous Liquid (195.5) Regs

•  Requires review of pipeline life cycle operating history

–  Design, construction, operation, and maintenance

•  Pipeline inspected for defects with remediation

•  Pressure test, based on code requirements

•  Integrity Management:

–  Update HCAs, conduct assessments, remediate threats, conduct pressure and fatigue analysis, and implement monitoring

•  Records kept for life of pipeline

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

Product Changes

•  Not specifically addressed in 49 CFR Parts 192 & 195, however operators must consider threat impact on all operations e.g.:

–  Operations and Maintenance (O&M) Plans/Manual •  Integrity Management Program

•  Over-pressure protection and surge pressures

•  Control Room Management

•  Operator Qualification

–  Spill Response Plans

•  Conversion from natural gas to crude (or other) requires service conversion review

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

Construction

•  PHMSA has increased focus on pipeline construction since 2007

•  Operators now must provide 60 days advance notification of construction projects

•  Liquefied Natural Gas (LNG); projects have increased significantly

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

Construction Inspections

Number of days spent in the field by year

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

Forward Look

•  Guidelines for flow reversals, service conversions and product changes

•  Integrity Management “2.0”

•  Operator Qualification for construction

•  Quality Management Systems for construction

•  Integrity Verification Process: Record keeping and methods used to establish maximum (allowable) operating pressure

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

Thank You!