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Operational Risk Management Enhancements
October 2011
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Enbridge Liquid Pipelines
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Operational Risk Management
•Manage and reduce risk of mainline operationsto people, the environment & the business
•Identify high risk operations
•Identify high consequence areas
•Model pipeline system to characterize risk
•Implement programs to manage & mitigate risk
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•Enhancements underway as a result of learningsfrom last year’s incidents
– More formalized processes
– New tool development
– Greater visibility and expansion of the ORM team
– Higher expectations for use of its tools and approaches
– Greater spend
Operational Risk Management
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Data Management Enhancements
•Corporate “Data Governance and Stewardship”
policy
•Common data repository (considering PODS)
•“Single Version of the Truth”•100% confidence in data (or explainable variances)
•Data quality assurance and quality control
improvements
•“Real-time” data collection for “Real-time” riskAssessment
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Consequence Enhancements
•Enhanced and more granular water crossings data
•HVP population density survey (200m, 800m)Canada and U.S.
•Identification of population sensitive areas
•Identification of Canadian “HCAs”
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Water Crossing Data Enhancements
•Lakes, Rivers, Creeks, sloughs, wetlands,
ditches, etc.
•Identifying Water Crossings & Tributaries
– Beginning of 2010: 100 + crossings
– End of 2010: Approx 600 water crossings identified
– End of 2011: Approx 7500 water crossings identified
•Examine water crossings in detail including:
– Tributary impacts to larger water bodies
– Identification of downstream impacts within 250 miles
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Standardized Risk Assessment Matrix
•Developing an Enbridge Liquid Pipelines RiskAssessment Matrix
– Work-in-progress (2010-11) development involving SMEsthroughout Enbridge Liquid Pipelines
– Standardization of terminology and approach – one matrixtool
– Incorporation of Likelihood Frequency
•Mechanical Damage, Weather, Outside Force / Ground Movement,
Incorrect Operations, Construction, Appurtenances / Sleeves,Corrosion, Cracking Fatigue, SCC
– Incorporation of Consequence Scoring
•Health and Safety, Environmental, Reputation, Financial
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Standardized Risk Assessment Matrix
• Identification of risk focus
areas
• Clear definition of acceptable, unacceptableand ALARP
• Mitigate out of the red
• Enables apples to applescomparison between projects
• Prioritize resources onhighest risk areas
• Multiple uses for matrix
within organization
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Semi-quantitative Mainline Risk AssessmentModel
• Semi-quantitative Mainline Risk Assessment Model replaces
Indexed Mainline Model
– Defines acceptable, unacceptable, ALARP
– Utilizes threat and consequence decision trees and new
risk assessment matrix
– Cumulative process used to assess likelihood andconsequence - Enables identification of “Super” HCASegments
– Software selected to support model
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Semi-Quantitative Mainline Risk AssessmentDynamic Segmentation
EveryTransport orDirect
impact on HCA(i.e. every HPA, OPA, ESA, DW, CNW)
Coating type
Weld type (~50%)Outer Diameter (~50%)
Water Crossings
Dynamicallysegmented mainline
Age
Seg. 1 23,9002 3…
11,400
20,500
22,000
22,250
23,000
23,900segments
(RiskAssessmentDynamicallySegmented)
No. of segments for
every parameter added
Downstream distancefrom pump station 23,900
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Enbridge Liquid PipelinesIdentification of Risk Treatments
•Operational Risk Management facilitatesidentification of potential risk treatments
•Cost-benefit analysis applied to select optimumrisk treatment(s) for implementation
•Operational Risk Management sponsors risktreatment execution, reports on progress, andmeasures risk reduction achieved
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Questions
•Questions?
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