1. What’s Wrong with Integrity Management? How Do We Improve Integrity Management? Terry Boss Senior Vice President Safety Environment and Operations PST Conference 11/19/2015

2. Who is INGAA? 1 INGAA represents the majority of the interstate natural gas transmission pipeline companies operating in the U.S., as well as comparable companies in Canada. Its members transport the nation's natural gas through a network of roughly 200,000 miles of pipelines.

3. Guiding Principles of Pipeline Safety Our goal is zero incidents - a perfect record of safety and reliability for the national pipeline system. We will work every day toward this goal. We are committed to safety culture as a critical dimension to continuously improve our industry’s performance. We will be relentless in our pursuit of improving by learning from the past and anticipating the future. We are committed to applying integrity management principles on a system-wide basis. We will engage our stakeholders - from the local community to the national level - so they understand and can participate in reducing risk. 2

4. PHMSA Natural Gas Unintentional Release Reporting Hierarchy SeriousIncidentsSignificant Incidents Incidents Reportable Incidents Leaks  Events  Occurring

5. Natural Gas Transmission Leaks Repaired per Year 4 PHMSA Annual Report

6. Cumulative Mileage Assessed Utilizing Integrity Management 5 Does Not Include Reassessment Mileage Source: PHMSA Annual Report 2004 through 2014, F 7100.2-1; on-shore gas transmission; INGAA Members as of 2015 Approximately 73% of INGAA Member’s Mileage Has Been Assessed By YE 2014

7. PHMSA Natural Gas Unintentional Release Reporting Hierarchy SeriousIncidentsSignificant Incidents Incidents Reportable Incidents Leaks  Events  Occurring

8. Reportable Incidents in HCAs All Onshore Transmission 7 Threats2002200320042005200620072008200920102011201220132014Grand Total External corrosion11000000020004 Internal corrosion00000001100002 Stress Corrosion Cracking00000000000000 Manufacturing-Related00100100100003 Construction and Fabrication-Related 00000000001012 Equipment-Related 100111000031210 Weather-Related and Outside Force Damage 111001021232115 Incorrect Operations00002000010205 Excavation Damage312312111210018 Other / Miscellaneous01011101001028 Subtotal644556154795667 End of Baseline

9. PHMSA Natural Gas Unintentional Release Reporting Hierarchy SeriousIncidentsSignificant Incidents Incidents Reportable Incidents Leaks  Events  Occurring

10. Equipment Related Cause (3-Year Rolling Average) – Significant 9 Number of Incidents Per Years Fatalities: 0 Injuries: 5 Onshore natural gas transmission; intra and interstate

11. PHMSA Natural Gas Unintentional Release Reporting Hierarchy SeriousIncidentsSignificant Incidents Incidents Reportable Incidents Leaks  Events  Occurring

12. Serious Incidents have Declined 11

13. Injuries and Fatalities 2004-14 ThreatFatalitiesInjuries External Corrosion1 (1-2007)4 (2) Internal Corrosion00 Stress Corrosion Cracking0(3) Manufacturing-Related8 (8-2010 PGE)52 (51 PGE) Construction-Related00 Equipment-Related17 Excavation Damage6 (1-2006)13 (2) Weather and Outside Force011 (9) Incorrect Operations010 Other/ Miscellaneous010 (3) 12 Public shown in parenthesis

14. How Do We Improve Integrity Management? All Stakeholders Should Be Diligent in Excavation Damage Protection Expand the Use of “Integrity Management” Implement Standardized Safety Management Systems (SMS) Improve the Capability “to Understand and Manage” Outside Force and Land Movement Monitor Failure Trends for New or Changing Challenges 13

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16. PHMSA Reporting Definitions §191.17 Transmission systems; gathering systems; and liquefied natural gas facilities: Annual report. Leaks are unintentional escapes of gas from the pipeline that are not reportable as Incidents under §191.3. A non- hazardous release that can be eliminated by lubrication, adjustment, or tightening is not a leak. Operators should report the number of leaks repaired based on the best data they have available. For sections replaced and retired in place, operators should consider leak survey information to determine, to the extent practical, the number of leaks in the replaced section. * §191.3 Definitions (Effective 2011) Incident means any of the following events:** 1.An event that involves a release of gas from a pipeline, or of liquefied natural gas, liquefied petroleum gas, refrigerant gas, or gas from an LNG facility, and that results in one or more of the following consequences: i.A death, or personal injury necessitating in-patient hospitalization; ii.Estimated property damage of $50,000 or more, including loss to the operator and others, or both, but excluding cost of gas lost; iii.Unintentional estimated gas loss of three million cubic feet or more; 2.An event that results in an emergency shutdown of an LNG facility. Activation of an emergency shutdown system for reasons other than an actual emergency does not constitute an incident. 3.An event that is significant in the judgment of the operator, even though it did not meet the criteria of paragraphs (1) or (2) of this definition *http://phmsa.dot.gov/staticfiles/PHMSA/DownloadableFiles/Files/Pipeline/GT-GG_Annual_Instructions%20_PHMSA_F71002- 1.pdf **http://www.ecfr.gov/cgi-bin/text- idx?SID=508ca795abddf4b389244286a66e14f8&node=49:3.1.1.1.7&rgn=div5#49:3.1.1.1.7.0.8.2

17. PHMSA Analysis Definitions PHMSA defines Significant Incidents as those incidents reported by pipeline operators when any of the following specifically defined consequences occur:*  fatality or injury requiring in-patient hospitalization  $50,000 or more in total costs, measured in 1984 dollars  highly volatile liquid releases of 5 barrels or more or other liquid releases of 50 barrels or more  liquid releases resulting in an unintentional fire or explosion PHMSA defines a serious pipeline incident as an event involving a fatality or injury requiring in-patient hospitalization.** **http://primis.phmsa.dot.gov/comm/reports/safety/SerPSI.html?nocache=8073 *http://primis.phmsa.dot.gov/comm/reports/safety/SigPSI.html?nocache=1099