Pipeline Safety Management Systems State Pipeline Safety Seminar September 21, 2016 1

REGULATION Not a Regulation. 2

Recommended Practice API RP 1173 3

PSMS Objective – To become more proactive. Provide a framework to identify, manage and reduce risks throughout the pipeline’s life cycle, at the earliest stage, and to prevent or mitigate these risks. Design, Construction, Operation, and Maintenance Makes compliance and risk reduction routine through intentional actions. 4

PSMS ELEMENTS Leadership and Management Commitment Stakeholder Engagement Risk Management Operational Controls Incident Investigation, Evaluation, and Lessons Learned Safety Assurance Management Review and Continuous Improvement Emergency Preparedness and Response Competence, Awareness, and Training Documentation and Record Keeping 5

1. Leadership and Management Commitment Top Management: Goals and Objectives – Define Expectations and what it takes to accomplish Ensure Culture of Safety Management: How are the goals and objectives achieved? Implement Processes, Procedures, and Training. Evaluate and Adjust as necessary Employees: Carry-out process and procedures Risk Identification 6

2. Stakeholder Engagement Internal: Provide for two-way communication between Management and Employees Raise concerns and share recommendations External: Provide for two-way communication Learn about potentially new risks in the community. Provide for engagement of communication, not just awareness 7

3. Risk Management Know your system – Identify where gaps is data exist and what risks may result Identify what can change between assessment intervals – what risks may result Identify and take actions to mitigate risks Annually review risk assessments – what are the results? Effectiveness? 8

4. Operational Controls Maintain procedures for safe operation Normal operations, Temporary operations, Emergency operations, etc. Review annually to identify improvements and lessons learned. Maintain system integrity from manufacturing of pipeline to construction to operations. Management of Change Change in Technology, Equipment, Organizational Change, etc. Identify and communicate any risks involved Use of Contractors – Define Responsibilities 9

5. Incident Investigation, Evaluation, and Lessons Maintain a procedure for investigating incidents and near-misses that led, or could have led, to an incident Investigation Identify Cause, Findings, Lessons Learned, and Recommendations Determine response to investigation Communicate Lessons Learned Learn from External Events 10

6. Safety Assurance The operator should evaluate the application of its PSMS and determine whether expected progress toward effective risk management and improved pipeline safety performance are being achieved. Audit and Evaluation Reporting and Feedback from Employees Performance Measurement and Analysis of Data 11

7. Management Review and Continuous Improvement Are Goals and Objectives being achieved? To what extent? Identify opportunities to continuously improve Does new technology exist? 12

8. Emergency Preparedness and Response Maintain procedures for responding effectively to a pipeline incident Plans shall be in place and ready for immediate implementation. Plans shall be accessible and communicated to all personnel and contractors. 13

9. Competence, Awareness, and Training The pipeline operator shall assure competence and training for all personnel including contractors to remain updated and aware of: Responsibilities and authority New or changing risks Opportunities to improve processes – Lessons Learned. Possible risks of failure to follow processes or procedures 14

10. Documentation and Record Keeping Maintain a procedure for the identification, distribution, and control of documents What Documents are needed? How are documents approved? Re-approved? Changed? Retained? Records shall remain legible, identifiable, and retrievable. 15

10. Documentation and Record Keeping PSMS Documents to Maintain at a Minimum: Safety Policies and Objectives PSMS Procedures Identification of Regulatory Requirements All procedures shall be established, documented, implemented, and maintained for integrity of PSMS. 16

PSMS Requires… Intentional and Systematic Actions Diligence and Oversight Engagement and Participation at all levels – Internal and External 17

PSMS Rewards… Greater Pipeline Safety Defined Path for Continuous Improvement Enhanced Safety Culture 18

Public Service Commission Manager Gas Pipeline Safety Branch Division of Engineering Jason M. Hurt, P.E. 211 Sower Blvd. Frankfort, KY 40602 http://psc.ky.gov Ph: (502) 564-3940 jason.hurt2@ky.gov