1. 1 Research, Development & Demonstration for Pipeline Operations Funding Overview & Key Projects Paul P. Gustilo Southwest Gas Corporation Paul.gustilo@swgas.com 2009 WRGC Tempe, AZ

2. 2 Discussion Topics Role of Research Background - Natural Gas Research Current State of Industry Funding RD&D Organizations Key Projects

3. 3 Role of RD&D for Natural Gas Operators Decrease O&M and Capital costs Enhance safety, integrity, and reliability Address pipeline safety regulations

4. 4 1997 – 7 yr phase out began GRI FERC Dollars Background – Natural Gas Pipeline Research Surcharge existed from 1975 – 2004 (Storage, Transmission, Distribution, End-Use)

5. 5 Current State of Industry Funding Distribution (LDCs) “Delta Funds” 1 3 4 5 6 7 8 9 10 11 12 2 13 14 15 16 17 18 19 20 21 22 23

6. 6 Current State of Industry Funding Interstate Pipeline Operating Budgets Costs recovered through pipeline rates or covered by shareholders Pipelines

7. 7 Other Funding U.S. Department of Transportation – Pipeline & Hazardous Materials Safety Administration (PHMSA) U.S. Department of Interior, Minerals Management Service (MMS)

8. 8 Primary Industry RD&D Consortiums NYSEARCH, subsidiary of Northeast Gas Association (NGA) Operations Technology Development (OTD) Program, administered by GTI Utilization Technology Development (UTD) Program, administered by GTI (End-Use Program) Distribution (LDCs)

9. 9 Primary Industry RD&D Consortiums Pipeline Research Council, International (PRCI) Gas Machinery Research Council (GMRC) Pipelines

10. 10 ILI for Unpiggable Pipe Inspection robot for 6” – 8” pipe Wireless/battery operated 1.5 mile range Gas flow not interrupted NYSEARCH Project

11. 11 Live inspection robot for 20” – 26” pipe up to 750 psig Wireless/battery operated ~ 3 mile range MFL Sensor ILI for Unpiggable Pipe NYSEARCH Project

12. 12 ASME Project - Hardness Testing OTD Project -Small Pipe Coupons 24,000 SMYS 42,000 SMYS Diameter: 12” Operating Stress 30% SMYS Operating Stress 17% Wall Thickness: ¼” Pressure: 300 psig Determining Pipe Strength Through Sub- Size Samples

13. 13 Determining Pipe Strength Through Sub- Size Samples

14. 14 Defect Depth Defect Length Guided Wave Detection Pressure Test Detection Threshold? Guided Wave vs. Pressure Testing

15. 15 Corrosion Rate Estimation Linear Polarization Resistance (LPR) Probe and Readout Box Electric Resistance (ER) Probe and Readout Box

16. 16 Corrosion Rate Estimation Duration (Day) Corrosion Rate (mils per year)

17. 17 Corrosion Rate Estimation Pit rate (mils/year) Resistivity (ohm-cm) Various models for estimating corrosion rate

18. 18 Corrosion Rate Estimation Web based program developed to estimate local corrosion rate Output of program Point rating of soil corrosion potential based on AWWA guideline Estimate of corrosion potential of “unprotected” and “protected” pipe List of corrosion rate values in same state with similar soil resistivity values (based on NIST database)

19. 19 Corrosion Rate Estimation Sample Output Average “Unprotected- pipe” corrosion rate is estimated to be about 7.18 mpy Average “protected- pipe” corrosion rate is estimated to be about 0.10 mpy

20. 20 Leak vs. Rupture Boundary Examples of code sections imposing more stringent requirements for higher stress lines Research project objective is to further quantify/evaluate appropriate SMYS level boundaries Section of CodeTopic §192.309 Repair of steel pipe –dents (40% or more of SMYS) §192.241 Inspection and test of welds - NDE requirements (< 40% SMYS) §192.711 General repair of transmission lines (at or above 40% SMYS)

21. 21 Keyhole Technology

22. 22 Pipe Splitting

23. 23 Pipe Splitting

24. 24 Timberline PE Repair Tool/Patch

25. 25 Acoustic Pipe Locator Scan Distance (Inches) Echo Time (msec)

26. 26 PA 11/12 PA 11 now approved for use under 192 (limited to 125 psig) PA 12 pending approval Can operate up to 200 psig w/design factor change

27. 27 Biogas Acceptance Guidelines Number and Energy Production from Operating Manure Digesters From GTI Draft Guidance Document

28. 28 Biogas Acceptance Guidelines Potential for Biogas Production and Methane Reduction in US From GTI Draft Guidance Document

29. 29 Summary A lot of RD&D Activity within LDC community SWG involved, primarily through OTD and NYSEARCH

30. 30 Summary RD&D Resources NYSEARCH, www.nysearch.orgwww.nysearch.org OTD, www.otd-co.orgwww.otd-co.org PRCI, www.prci.orgwww.prci.org GMRC, www.gmrc.orgwww.gmrc.org PHMSA, http://primis.phmsa.dot.gov/rdhttp://primis.phmsa.dot.gov/rd