1. David Johnson November 13, 2014
Regulatory Update
David Johnson
November 13, 2014

2. Wait a minute . . .
As we go through this today, you’re gonna think, Wait a minute, here. Isn’t this the same stuff you talked about last year? Did you just recycle the same presentation and reorganize it to make it look different? And where’s that fried turkey picture? Well, it’s right here, and the oil is getting hotter -

3. And the reason this stuff looks familiar is - - -

4. There is a lot in the works, but not moving very quickly
Gas transmission mega-rule
Valve and rupture detection rule
Miscellaneous amendments
State damage prevention enforcement
OQ, cost recovery, notifications
Safety of hazardous liquid pipelines
Excess flow valves
Standards Update
Plastic pipe

5. And not rules, yet Class location requirements
GIS / NPMS information collection
Safety management systems
Midstream jurisdiction
Advisories

6. Gas Transmission Mega-Rule
Expanded HCA definition – PIR, MCA
Additional IM requirements – in and out of HCA/MCA
Anomaly response & repair criteria
More gathering lines included
EC, IC, SCC requirements
IVP – MAOP confirmation
PHMSA schedule – NPRM , 60-day comment period

7. IVP
MAOP confirmation
A process that parallels (a) (sort of) for vintage and other lines
Talked about it last year
You remember the proposed flowchart

8. IVP Flowchart (real)

9. IVP Flowchart (published)

10. Valve and Rupture Detection Rule
Mandatory automated valves for HCA, Class 3 & 4 locations
Rupture detection integrated into valve operation
Goal is rapid mitigation and enunciation of large release events
Anticipated bias toward automatic rather than remote operation
SCADA and alarm impacts
Likely based on two reports containing significant misperceptions
PHMSA schedule – NPRM , 90-day comment period

11. Miscellaneous Amendments
Rail shipment of pipe must be per API 5L1
1.5 x MAOP test for all ASME vessels
Welder & welding operator definition and requalification
Individual cannot inspect own work
Lateral definition impacting odorization requirements
PHMSA schedule – Final Rule

12. State Damage Prevention Enforcement
Minimal impact to operators
Primarily a PHMSA – State issue
Allows PHMSA to enforce state laws if states ineffective
May also include one-call requirements differing from current
PHMSA schedule – Final Rule

13. OQ, Cost Recovery, Notifications
Expansion of OQ (new construction?)
Renewal process for special permits
More stringent incident reporting
Cost recovery for design reviews / construction inspections
PHMSA schedule – NPRM , 90-day comment period

14. Safety of Hazardous Liquid Pipelines
Expansion of HCA definition / assessments beyond HCAs
Response / repair criteria in and outside HCA
Leak detection beyond HCAs
Expanding regulation and reporting of currently exempt lines – more and smaller gathering lines
PHMSA schedule – NPRM , 90-day comment period

15. Excess Flow Valves EFVs on all new and renewed gas service lines
EFVs on all practicable structures other than single family dwellings
Could cover farm taps or non-LDC direct-feed customers
PHMSA schedule – NPRM , 90-day comment period

16. Standards Update Update IBR standards in 192, 193, 195
Addresses 22 of 60+ IBR standards
Must be available for free to the public
“On the internet” requirement eliminated
PHMSA to determine what constitutes “free to the public”
PHMSA schedule – NPRM , FR stage

17. Plastic Pipe Authorized use of PA12
AGA petition to raise D.F. from 0.32 to 0.40 for PE pipe
Enhanced Tracking and traceability
Miscellaneous revisions for PE and PA11 pipelines
Additional provisions for fittings used on plastic pipe
PHMSA schedule – NPRM stage

18. Class Location Requirements
PLS Act requirement to study
Do IMP actions reduce the need for class locations?
Unlikely that class location requirements will disappear
Potential for significant reduction in class location dependence on future pipelines
However, extensive IM would be required
PHMSA actions – Public meeting
Report to Congress under review
No additional reports, publication or rulemaking schedule

19. GIS / NPMS Information Collection
Increased positional accuracy in NPMS
± 5 ft in HCA, ± 50 ft elsewhere
Collection of data on 31 attributes – OD, WT, Gr, seam, age, MAOP, product, class location, HCA, valves, leak detection, throughput, etc.
Info to help – emergency responders, local officials, risk assessments, maybe annual reports
Extremely expensive
PHMSA schedule – Workshop in November 17, 2014
Earliest effective date

20. Safety Management Systems
NTSB recommendation P to API to develop standard for safety management systems (arose from Enbridge failure)
Draft API-RP-1173 balloted – 999 comments
PHMSA heavily involved and highly supportive
Structured around 10 elements
What to do, but not how to do it
Good concepts, but extremely prescriptive
PHMSA says will not be in regulations, but it will be an “expectation” & could be enforced through Safety Orders
Several references to “regulation” at recent TPAG
PHMSA schedule – none known

21. Midstream Jurisdiction
Jurisdiction question raised about a year ago
Ad hoc group from advisory committee studying
Clarify PHMSA vs OSHA jurisdiction of facilities for:
Dehydration
NG processing
NGL liquids fractionation
Petrochemical operations
Storage
Terminal operations & transportation
Goal – minimize regulatory gaps and overlaps

22. Advisories Program evaluation and metrics
Conversion / reversal guidance
Construction notification – 60 days before “construction related activities”, include materials purchasing, off site fabrication
Enbridge lessons – deficiencies in IM, control center, public awareness
Recall of some TDW repair clamps
Telephonic notification time limit – 1 hour
Reporting MAOP exceedances
Communication during emergency situations
Verification of MAOP records

23. Metrics Guidance
October 2014 – Program Evaluation & Meaningful Metrics
Rigorous program evaluation
Leading and lagging indicators
Plan – do – check – act
Goals, metrics and more metrics
6 – 12 “meaningful” metrics – publicize
Or maybe 100 or so
Gas & Liquid teams developing
Finalize enforcement metrics (?)
Apparent close ties to SMS

24. Program Evaluation Flowchart

25. Metrics Example
Leading ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Indicators‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Lagging
Failure Mechanism
Selected Process or Operational Activities for Threat Prevention or Management
Deterioration Indicators
Failure or Direct Integrity Metrics
Other Third Party Damage, including vandalism, third‐party vehicle contact with facility, interferences and other intentional or unintentional acts
● ROW and patrolling program
● Line marking program
● Training and OQ tasks
● Depth of Cover survey program
● Use of Damage Information Reporting
Tool (DIRT) report data
● Public awareness program
● Physical protection of aboveground facilities
● No. of patrol reports that have not had necessary follow‐up completed
● Reports by law enforcement agencies and first responder agencies
● No. of pig runs with indicated damage
● No. of sites lacking security fencing and /
or cameras or other features
● No. of susceptible sites lacking vehicle impact barriers
● No. of aboveground facilities hit by vehicles
● No. of vandalism incidents without a release
● Incidents of damage due to underground inference with adjacent structures, utilities, etc.
● Releases due to third‐party damage
● Releases due to prior excavation‐related damage
● Releases due to prior non‐excavation‐
related mechanical damage

26. Conversion & Reversal Guidance
September 2014 PHMSA Guidance doc issued
Covers conversions, reversals, product changes
Largely follows existing regulations
Helps point out factors & changes that need to be considered
Pressure & temperature profile changes
HCA identification
Valve and leak detection requirements
Emergency response / spill considerations

27. PG&E San Bruno
The CPUC has proposed a $1.4 billion fine – in addition to what has already been spent on the system
U.S. DOJ has issued a superseding indictment – 28 counts
Indictment issues – Obstruction, records, threat identification, baseline plan and assessment methods
Estimated PG&E derived gains of $281 million and victims suffered losses of $565 million
No individual indictments – yet
PG&E appealing fine, pleading not-guilty to indictment

28. Recent GAO Report
DOT regulation has not kept pace with transportation environment
Large gathering lines, same risk as transmission, remain outside regulations
Recommend rulemaking to address gathering pipeline safety
PHMSA agrees and is developing proposed regulations

29. Web Locations Advisory Bulletins Rulemakings Notices Final Rules
Rulemakings
Notices
Final Rules
Regulatory Agenda