1. TELVENT IT for a Sustainable and Secure World Alarm Management Gregory Bogle Business Development Manager – Europe Telvent – Oil and Gas Division – EMEAA 9-10 June 2009 Istanbul, Turkey

2. TELVENT IT for a Sustainable and Secure World Agenda  Alarm Problems in the Pipeline Industry  Control Room Management Plan  Alarm Handling vs. Alarm Management  What is Alarm Management?  The Regulatory Drivers  Pipes Act 2006, PHMSA–NOPR, API 1167  International Alarm Management Standards  Alarm Management Approaches  Key Performance Indicators  Summary and Conclusion

3. TELVENT IT for a Sustainable and Secure World Factors Contributing to Alarm Overload The following factors represent some of the more common systemic issues that contribute to the alarm problem that the pipeline industry faces.  Running pipelines/units harder increases the need for alarms  Reduced profits resulting in lower levels of maintenance  Increased and more stringent safety requirements due to incidents in the industry  Increased reliance on monitoring technology; including security monitoring  Communication alarms inherent to SCADA increase alarm activity  Too many people allowed to determine/configure alarms and settings

4. TELVENT IT for a Sustainable and Secure World What is Alarm Management?  Alarm Philosophy  Benchmark and performance audit  Rationalization (rules of engagement)  “Bad actor” / repeat offender cleanup  Dynamic and state-based alarming  Implementation  Continuous Improvement  Management of Change Measure Manage Monitor Improve

5. TELVENT IT for a Sustainable and Secure World Alarm Handling vs. Alarm Management Alarm Handling Real Time Basic Alarming Trip Points Rate of Change Deviation Notification Enhanced Alarming Dynamic State-based Logic-based Alarm Suppression Predictive/Smart Alarms Alarm Management Offline or Online Alarm, Event, Op-change Archival Analysis, KPIs Rationalization Change Management Knowledge Capture Operator Notes Notification / Escalation Dynamic Configuration Change Enhanced Alarm Setup A&E Data SCADA Enterprise

6. TELVENT IT for a Sustainable and Secure World PHMSA Proposed Rule – Alarm Management Pipeline & Hazardous Materials Safety Administration requires that a Control Room Management (CRM) Plan must address many items, including:  Detailed provisions relating to alarm management ensuring controllers will respond appropriately to alarms and notifications  SCADA operations must be reviewed regularly  SCADA configuration and alarm management operations must be reviewed at least once each calendar year  include identification of abnormal or emergency operating conditions and a review of controller response actions. www.regulations.gov Search for docket 27954

7. TELVENT IT for a Sustainable and Secure World API RP 1167 An API workgroup is currently developing an Alarm Management Recommended Practice (API RP 1167).  The expected outcome is a consensus document that could address definitions, effective alarm system design, good alarm audit and review practices and strategies to minimize overload and nuisance alarms.  Implementation of the recommendations in these documents should satisfy the Pipes Act of 2006 requirements. AGA Alarm Management Whitepaper  Reviewing API 1167 to determine if they will publish their paper, which is likely to follow the API document.

8. TELVENT IT for a Sustainable and Secure World Other International Alarm Standards EEMUA 191 (Engineering Equipment & Materials Users Association)  Guide to the design, management and procurement of alarm systems - EEMUA Publication 191  First published in 1999 and revised in 2007  and has become recognized and followed the world over as a reference publication in this area. ISA SP-18 Standards & Practices 18  18.02 is a standard, not a guideline or recommended practice  developed in accordance with ANSI methodologies  it is likely to be regarded as "recognized and generally accepted good engineering practice (RAGAGEP)" by regulatory agencies

9. TELVENT IT for a Sustainable and Secure World Alarm Management Approaches  D-I-Y (Do It Yourself)  Spreadsheet approach, custom reports/applications  Good early results, but can be difficult to sustain  3 rd Party Alarm Management with extra services required  Some Alarm Management providers sell licenses that require additional effort to deliver required functionality  3 rd Party Alarm Management on “turnkey” basis  Proven quick deployment, analysis starts on day one  Additional services available if desired

10. TELVENT IT for a Sustainable and Secure World Common Alarm Management Tools What should be in an Alarm Management solution?  Rich Alarm Management Tools “Out of the Box”  Alarm Reduction Analysis  Frequency, Duration, Chattering, Related, Flood, Alarm State, Nuisance, …  Alarm performance measurement and reporting  Efficient alarm system engineering  Complete Alarm life cycle management

11. TELVENT IT for a Sustainable and Secure World Managed Alarms – Targets / KPIs KPI (Key Performance Indicator)EEMUA Recommendations Manageable Steady State 1 per 10 minutes Flood State 10 in 10 minutes Average Process Alarm Rate 5 per hour or 120 per day % of Time Alarms Exceed Target Ave. Rate 0% Peak Alarm Hourly Rate 15 per hour Peak Alarm Minute Rate 2 per minute Alarm Activity Priority Distribution 5%High,15% Medium, 80% Low Alarms Within 10 Minutes of a Major Upset 10 or less Chattering Alarms 0 Stale alarms (more than 1 day old) 0 Unauthorized Changes to Alarm Settings 0

12. TELVENT IT for a Sustainable and Secure World Conclusion and Summary Benefits of Alarm Management  Improved operation, quieter control rooms  Visibility and Accountability  Fewer, but more relevant alarms  Better basic control  Better documentation / advisory information  Better alarm flood control and avoidance  Labor savings  Controller load balancing  one pipeline shutdown / incident could cancel any gains from a year of process improvements  Increased Pipeline uptime  Avoidance of unplanned outages  Regulatory compliance

13. TELVENT IT for a Sustainable and Secure World Thank You