Applicability of OQ for new construction activities

Addressing abnormal operating conditions during

evaluations and at job site

Span of Control limitations

Tracking OQ during O&M activities & projects

Addressing the “gap” between qualification and

Operator-specific procedures

Properly monitoring/maintaining programs

Recent regulatory OQ findings and expectations

Operator Qualification (OQ) Rule

The OQ Rule is intended to provide an additional level

of safety and requires pipeline Operators to develop a

qualification program to evaluate an individual’s

ability to perform covered tasks and to recognize and

react to abnormal operating conditions that may occur

while performing covered tasks.

Operator Qualification (OQ) Rule

OQ is not intended to be a one-time event, but a

process that continues for the working lifetime of an

individual.

After initial evaluation and qualification have been

completed, re-evaluation and requalification is

required.

The Operator must recognize this and designate for

each covered task an appropriate time interval for

requalification.

Why do we need qualified individuals…

OQ for New Construction Activities

Is OQ required for new construction?

Tie-ins

80% AMAOP

Special permits

PHMSA covered task list

New group of contractors/personnel

Regulatory agencies’ expectations

Abnormal Operating Conditions (AOC’s)

Abnormal operating condition means a condition

identified by the operator that may indicate a

malfunction of a component or deviation from normal

operations that may:

(a) Indicate a condition exceeding design limits; or

(b) Result in a hazard(s) to persons, property, or the

environment.

Abnormal Operating Conditions (AOC’s)

Qualified individuals must be able to recognize and react

appropriately to AOC’s.

Recognize: means that the employees are able to

identify a situation or event on the pipeline that is out

of the ordinary and could become a hazard to the

public or environment, if not promptly corrected.

React appropriately: means the employee knows what

to do to ensure that the hazard is promptly addressed.

This could include notifying the employee’s

supervisor or site inspector or taking the correct

action to mitigate the hazard, whichever is appropriate

for the AOC.

How do you address AOC’s?

Task-specific versus generic

PHMSA OQ FAQ - Operators are expected to develop a thorough

listing of AOCs, both task-specific and generic. The task-specific

AOCs may be included within the evaluation criteria for the specific

task, but the generic AOCs should be maintained in a separate list

and reviewed periodically.

PHMSA Integrated Inspection Guidance - In addition to task-

specific AOCs (i.e., those that may be caused by performance of the

task), generic AOCs (i.e., those that may reasonably be encountered

during performance of the task) have been identified and used in

qualification in cases where special requirements and conditions for

the task being performed must be considered.

During evaluation

At the job site

Span of Control (SOC)

No one can perform a covered task unless they are

specifically qualified to perform that task or are directed,

observed and supervised by a qualified individual (if

span of control is allowed) as outlined in the OQ plan

Sample Covered Task List

Span of Control (SOC)

A SOC ratio of 1:3 would mean that one qualified

employee could direct, supervise and observe up to

three unqualified employees.

Span of Control Expectations

Assure that a qualified person is always present

during activities where a covered task is being

performed

Assure that all individuals, qualified and non-qualified,

understand the requirements

Consider any conditions that may impact the SOC

ratio, such as:

Language Barriers

Noise Level

Weather

Regulatory agencies’ expectations

“Sniper” Observations

Tracking OQ during Projects

Identify applicable covered tasks for the

activities that will be performed

Communicate requirements to all affected

personnel

Assure personnel are qualified to perform the

applicable covered tasks

Obtain/maintain qualification records

Tracking OQ during Projects

Track personnel who actually performed

task(s) Need to identify individual for each covered task

Inspectors’ role?

How often do you verify qualifications and identities?

Who worked under SOC?

Record Discussions AOC’s (Site-Specific)

SOC limits & adjustments

Procedures/policies

Should be considered part of QMS

Regulatory agencies’ expectations

The “Gap”

Task criteria versus Operator procedures Use of “off-the-shelf” covered tasks

How is it addressed? Need to demonstrate that the person in the “ditch” is aware of

procedures

Best Practices Tailgate meetings

JSA’s

Training

Regulatory agencies’ expectations

Program Monitoring/Maintenance

Need to periodically review program

ADB 12-09: each calendar year, not to exceed 15 months

Need to review rules and references for additional

covered tasks

Recent changes incorporated further references

Need to develop method for employee feedback

Changes in procedures

Additional potential AOC’s

Need to periodically review personnel performance

OQ needs to be considered during accident/incident

investigations

Consequences of

Non-Compliance

PHMSA Enforcement Actions

The Pipeline Enforcement Program has a number of different

mechanisms to assure operator compliance and safe operation.

Including:

• Letters of Concern

• Warning Letters

• Notice of Amendment

• Notice of Probable Violations

• Corrective Action Orders

• Notice of Proposed Safety Order

The Pipeline Safety, Regulatory Certainty, and Job Creation Act of

2011 increased the civil penalty authority of PHMSA to a maximum

of $200,000 per violation per day, up to a maximum of $2,000,000 for

a related series of violations.

PHMSA Enforcements Issued

2002 – April 2012

• Corrective Action Orders 92

• Notice of Probably Violation 640

• Notices of Amendment 844

• Warning Letters 945

• Notices of Proposed Safety Orders 11

• Civil Penalties 462

Proposed Penalties $41,000,000

Assessed Penalties $26,000,000 (Does not include 2012 Penalties)

Criminal Penalties

Criminal penalties may be taken: If any person willfully and knowingly violates a pipeline safety

requirement is subject to a fine of not more than $25,000 for each

offense, imprisonment for not more than five years, or both.

If any person willfully violates a regulation for off-shore gathering lines

is subject to a fine of not more than $25,000 for each offense,

imprisonment for not more than five years, or both.

If any person willfully and knowingly injures or destroy any interstate

pipeline facility, is subject to a fine of not more than $25,000 for each

offense, imprisonment for not more than 15 years, or both.

If any person willfully and knowingly defaces, damages, removes, or

destroys any pipeline sign, right-of-way marker, or marine buoy, that

individual is subject to a fine of not more than $5000 for each offense,

imprisonment not to exceed one year, or both.

OQ Protocol Summary Statistics

Significant Protocol Areas Potential Issues

/Overall Inspections

% PI

4.02 Abnormal Operating Conditions (AOCs) 2116 / 5998 35.3

3.01 Documentation for Individual on CTs 2018 / 5998 33.6

8.02 Notification of Program Changes 1130 / 3563 31.7

2.02 Evaluation Methods for KSA’s 1895 / 5998 31.6

7.01 Qualification Trail 1880 / 5998 31.3

Examples of Recent OQ Civil Penalties

2009 – Operator failed to identify a covered task (hot tap)

nor had anyone properly qualified: $100,000 fine assessed

2009 – Operator failed to identify a covered task (threaded

fitting assembly: $133,100 fine assessed (being contested)

2010 – Operator did not enforce SOC properly: $100,000

fine assessed (being contested)

2010 – Operator allowed unqualified personnel to perform

covered tasks; $271,300 fine assessed (being contested)

2010 – Operator failed to identify a covered task (mud

plugs) nor had anyone properly qualified: $788,000 fine

assessed

2010 – Operator failed to identify covered tasks nor had

properly qualify personnel: $98,600 fine assessed

What the Future may bring

On the horizon: New construction and inspection tasks may be

included

Activities based on incorporated references Routine monthly break-out tank inspections

Expansion of pipeline facilities All gathering lines

Well heads

Underground storage facilities

Verification of contractor knowledge of Operator

procedures

Documentation of qualified individual that actually

performed the task (who wrapped that pipe, etc.)

More in-depth inspections