1. 1 Information Hearing The San Bruno Explosion: Pipeline Safety In California Panel IV – Maintenance, Inspection & Financing of Gas Transmission Pipelines October 19, 2010

2. 2  Increased Public Awareness Communications Added pipeline location maps on website (English and Spanish) Includes all high pressure distribution and transmission Safety Message Brochure mailed to customers within 1/8 mile of Transmission Pipelines Face-to-face meetings with cities, customers and agencies Providing electronic GIS pipeline maps to agencies Extensive media education  Operations Completed additional leak surveys on transmission pipelines to ensure all piping has been surveyed in last 6 months Mutual assistance provided to PG&E (over 1100 miles of leak surveys) Recent CPUC audit of Integrity Management program Measures taken in response to San Bruno Incident

3. 3 Integrated Pipeline Safety Approach  A system design that meets or exceeds all codes and standards Material specification (pipe, valves and fittings) Valve placement Overpressure protection Geotechnical hazard mitigation  Best Practice Operations and Maintenance Program Routine Inspections and Maintenance Leak surveys Corrosion control inspections and prevention Preventive maintenance on equipment Baseline Process Damage Prevention (call 811)  Pipeline Integrity a ssessment and periodic reassessments(HCA) Prevention and Mitigation Plans (system-wide) Infrastructure improvement plans  Continuous Improvement

4. 4 Transmission Assessment Summary Summary (as of September 2010):  4,172 Miles of Transmission Line  938 HCA Miles Inspected (74%)  1,934 Total Miles Inspected (46%)

5. 5  SoCalGas spends ~$2.5MM/year on collaborative gas infrastructure RD&D, which leverages ~$25MM of industry research  Actively participated for over 50 years with industry groups such as PRCI, AGA, GTI, INGAA, OTD to encourage development of new technology  Collaboration includes other pipeline operators, universities and government  Seeking out the newest technologies such as: NYSEARCH TIGRE and Explorer II Robotic Inspection for unpiggable pipelines PRCI Internal Corrosion Assessment Model/Tool Guided Wave Technology Development Commitment

6. 6 Emergency Response  24-hour active management, including pressures and flows, by SoCalGas Gas Control  Incident response crews located in the regions available to respond 24/7  In-line supervision and executive management trained and available 24/7 to activate Emergency Operations Center and Gas Emergency Center  Incident response protocols in place – tested and reviewed annually  Drills conducted with first responders, Office of Emergency Service, local fire departments and other agencies  Proactively meet with first responders throughout territory

7. 7 Integrity Management O&M and Capital Total Spent 2004 – 2009: O&M $69 MM Capital $178 MM