Pipeline Safety – 2015 Year in Review

Large PHMSA Budget Increase Pipeline Safety spending in 2015 was increased $26.9 million. Main areas of expansion include: $10.0 million increase to expand the State Pipeline Safety Grants (for a total of $48.1 million overall) to reimburse states for up to 80% of their cost to maintain their own pipeline safety program; $11.9 million for hiring 109 new positions mostly inspection and enforcement personnel, bringing the workforce in the Office of Pipeline Safety to 336; and $2.1 million for additional community outreach activities for those communities most affected by pipelines near where people live and work.

Largest Spill - 1,283,730 gallons of Ethane Spilled and Exploded from an Enterprise Pipeline in West Virginia - Jan. 2015

NTSB Safety Study of Gas Transmission Pipeline Integrity Management – Jan This study found that while PHMSA’s gas IM requirements have kept the rate of corrosion failures and material failures of pipe or welds low, there is no evidence that the overall occurrence of gas transmission pipeline incidents in HCA pipelines has declined.

2nd Spill Into the Yellowstone River in less than four years - January 2015 Of the 30,000+ gallons spilled into the river less than 10% was recovered. There is still no property damage listed in PHMSA’s data which is supposed to include response & remediation costs. ???????

PG&E Fined $1.6 Billion for San Bruno Tragedy – April 2015 “The California Public Utilities Commission voted today to fine Pacific Gas & Electric Co. $1.6 billion in penalties for its role in the September 2010 San Bruno gas pipeline explosion that killed eight people, injured dozens and destroyed or damaged about 100 homes.”

Santa Barbara Oil Spill May 2015 Most expensive spill of the year - $111 million How do you get 80%+ wall loss from corrosion in a pipeline with ongoing ILI testing and an integrity management plan?

Pennsylvania Pipeline Infrastructure Task Force Created – May 2015 Plan, site and route pipelines in ways that avoid or reduce environmental and community impacts; Amplify and engage in meaningful public participation; Maximize opportunities for predictable and efficient permitting; Employ construction methods that reduce environmental and community impact; and Ensure pipeline safety and integrity during operation of the pipeline.

New PHMSA Administrator (Aug. 2015) Quick Release of Proposed Liquid Rule (Oct. 2015)

Michigan Task Force Report and Creation of Pipeline Safety Advisory Board – Sept Specific Recommendations regarding the Straits Pipelines 1. Prevent the transportation of heavy crude oil through the Straits Pipelines. 2. Independent risk analysis and adequate Financial assurance for the Straits Pipelines. 3. Independent analysis of alternatives to the existing Straits Pipelines. 4. Obtain additional information from Enbridge relating to the Straits Pipelines. Statewide Recommendations 1. Coordinate mapping of existing pipelines among state agencies. 2. Ensure that state agencies collaborate on emergency planning and spill response. 3. Ensure coordinated emergency response training exercises and drills. 4. Ensure regular state consultation with the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) on hazardous liquid (including petroleum) pipelines. 5. Consider legislation requiring state review and approval of oil spill response plans, improved spill reporting, and more robust civil fines. 6. Evaluate whether to establish a Hazardous Liquids Pipeline Safety Program in Michigan. 7. Consider legislation or rulemaking to improve siting process for new petroleum pipelines. 8. Consider issuing an Executive Order creating an Advisory Committee on Pipeline Safety. 9. Create a continuing Petroleum Pipeline Information website.

Energy Transfer and Williams Merger Announced September 2015 The combined Energy Transfer group would become the largest energy infrastructure franchise in the United States. It will also be the fifth-largest global energy company, with a combined network of more than 100,000 miles of liquids and natural gas pipelines.

Growing Awareness of Issues Surrounding Emissions from Natural Gas Pipelines

Rejection of Keystone – Nov 2015 “the State Department has decided that the Keystone XL Pipeline would not serve the national interest of the United States. I agree with that decision. “ President Obama

Industry Highlights Regulations can not get us to zero pipeline failures. Industry initiatives need to get us there. Rolled Out a Recommended Practice on Safety Management Systems Developed a Recommended Practice on Leak Detection Developed a Recommended Practice on Pipeline Cracking