1. Integrity Management Continuous Improvement Project Status and Implementation Process Presentation for: PHMSA Advisory Committees July 11, 2012

2. 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. 1

3. INGAA Members 9 Step Action Plan 2  Apply Risk Management beyond High Consequence Areas (HCAs)  Raise the Standards for Corrosion Anomaly Management  Demonstrate Fitness for Service on Pre-Regulation Pipelines  Shorten Pipeline Isolation and Response Time to 1 Hour in Populated Areas  Improve Integrity Management Communication and Data  Implement PIPA Guidance  Evaluate, Refine and Improve Threat Assessment and Mitigation  Implement Management Systems Across INGAA Members  Provide Forums for Stakeholder Engagement and Emergency Officials

4. INGAA IMCI Significant Commitments Expanding IM Apply integrity management principles to the entire transmission system operated by INGAA members  90% of the population nearby pipelines using integrity management principles by 2012  90% of the population nearby pipelines using ASME B31.8S by 2020,  100% of the population nearby pipelines using integrity management principles by 2030  The remaining 20% of mileage with no population using integrity management principles beyond 2030 Verify Integrity of pre-regulation pipes Validate records and MAOP pre-regulation pipelines in HCAs and class 3 by 2020 and beyond HCAs and class 3 by 2030 If records are inadequate, apply fitness for service and remediate as necessary Mitigate Consequences of Incidents Develop isolation and response plans using both valves and deployment of personnel to meet 1-hour standard in populated areas. 3

5. IMCI Teams Team 1 – Data team to support IMCI decision making Team 2 – Expanding integrity management Team 3 – Integrity assessment tools and repair criteria Team 4 – Records verification, MAOP re-validation and fitness for service for pre-regulation Team 5 – Technology development Team 6 – Management systems Team 7 – Valves and incident management mitigation Team 8 – Construction quality Team 9 – Underground storage 4

6. IMCI One Pagers Strategic Plan - Building Confidence in Pipeline Safety Action Plan - Building Confidence in Pipeline Safety Safety Culture is a Core Value 2012 Status Report - Acomplishments, Plans and Commitments Extending Integrity Management Beyond HCA to Cover 100% of People Living Near Pipelines Pre-Regulation Pipelines: Acessing Records and Managing the Integrity Fitness for Service: Defined & Applied to Pre-Regulation Pipelines Integrity Management Principles: Prevention, Assessment & Mitigation Practices Pipeline Valve Operation Quick Facts Maximum Allowable Operating Pressure Defined Managing the Integrity of Older Pipeline - The Basics INGAA Members Achieve Significant Integrity Management Progress In 2011 2011 Status Report on Pipeline Leaks - Causes & Downward Trends 2011 Status Report - Progress and Results from Integrity Management Implementing Pipelines and Informed Planning Alliance (PIPA) - a Community Effort Public Awareness - A Journey of Engagement 5

7. IMCI Work Products Workshops and Webinars Records Management and MAOP Validation – INGAA Foundation - October 2011 Overview of INGAA Policy Filings for Members – December 2012 Overview of INGAA Policy Filings for NAPSR – December 2012 Overview of IMCI – March 2012 Extending Integrity Management Principles – March 2012 Records Management, MAOP Validation and Management of Pre-Regulation Pipe – April 2012 Safety Culture and Management Systems – April 2012 Records Management Best Practices – May 2012 Data Management – Joint meeting with API and AGA – May 2012 Data Management – Joint meeting with PHMSA, API and AGA – June 2012 Valves and Incident Management Mitigation – Day Long Workshop – August 18, 2012 6

8. IMCI Work Products White Papers and Memoranda Analysis of Extending Integrity Management Definition and Application of Fitness for Service to Gas Pipelines Foundation of An Effective Safety Culture Management Systems – in progress Guidance on Incident Management Mitigation Technology Development Managing ILI Uncertainty – in progress conducted by PRCI General Corrosion and Pitting Corrosion – under review Interactive Threats – in progress conducted by GTI Proposed Changes to ASME B31.8S – under development Practical Implementation of Construction Quality Management Systems – INGAA Foundation IMP Performance Summary Guidance on Implementing Expansion of Integrity Management 7

9. ONE PAGERS: HTTP://WWW.INGAA.ORG/15901.ASPX WWW.INGAA.ORG