1. API/AOPL Pipeline SMS Implementation Team
API-AOPL Pipeline SMS /API RP 1173 Implementation Efforts
AGA SMS Workshop • April 12, 2017
Bill Byrd – President, RCP Inc.
Stuart Saulters – API Midstream-Pipeline Staff
Aaron Duke – API Global Industry Services

2. Agenda API-AOPL Implementation Efforts
PSMS “Group” and Logo
PSMS / API RP 1173 Implementation Tools
Conformance and Effectiveness Sub-Teams
Annual Reporting & Industry Commitment
API Global Industry Services – PSMS Programs
Future Plans for Third-Party Audit/Assessment Programs

3. API-AOPL Implementation Team Efforts
“Group” and logo
Management Commitment is Key
“Group” member companies:
Executive commits in writing to pursue the development, implementation and maturity of a PSMS in their company, and to communicate their progress with API / AOPL
Are allowed to use the PipelineSMS Group™ logo, below

4. Commitment
Pipeline operators transporting almost 95% of the liquids pipeline industry barrel-miles have committed to Pipeline SMS
92% of liquids pipeline industry barrel-miles operators are members of the Pipeline SMS Group
AP/AOPL led Commitment mentoring strategy
Partnering committed operators with non-committed operators
Commitment letters signed: 95%* bbl/miles
Pipeline SMS Working Group: 92% bbl/miles
42 of 56 API/AOPL members have committed
API/AOPL along with committed companies are reaching out to others who have not yet signed on
Non Committed Operators
Concerns
Resource commitment to implementing a program
Program duplicating or replacing existing programs
Want the flexibility to audit with three methods outlined in RP 1173, and not immediate jump to third party
Plans
API reaching out to Operators
Partnering Committed Operators with Non Committed Operators

5. API-AOPL Implementation Team Efforts
PSMS / API RP 1173 Implementation Tools
Booklets: Why, What, How
Workshop and Webinar Materials
Implementation Planning Tool
68 Question “Gap level” Assessment
Peer to Peer Sharing Practices
Addresses the Conformances Team’s following deliverables – industry wide KPI’s, Evaluation of growth & aggregation of data
Need 90% of surveys, if you haven’t turned one in, please do so by Friday April 7, 2017

6. API-AOPL Implementation Team Efforts
Conformance and Effectiveness Sub-Teams
Conformance = Programs have been developed
234 “Shall” Statements Assessment Tool
Yes / No, or
Sliding Scale 0 – 3 : Not Started to Fully Developed
No roll-up of answers to get a “score”
Effectiveness =
Programs are being used (effectiveness of implementation)
At the 234 Question level
Improvements are being seen (effectiveness of results)
High-level performance metrics; still being developed

7. API-AOPL Implementation Team Efforts
Demonstrating Progress
Sharing our Progress:
To date:
“3 Questions” Survey
“12 Questions” Survey
Group member questionnaire
Annual Report
Performance Measurements will Evolve
Benchmarking: An activity, not a separate tool
Addresses the Conformances Team’s following deliverables – industry wide KPI’s, Evaluation of growth & aggregation of data

8. Annual Report

9. Path Forward Continue efforts toward garnering 100% commitment
Survey/benchmarking participation
Ensure companies send participants to the June 13, 2017, conformance workshop
Share “How”

10. API Global Industry Services (GIS)
Develop Standards
Certify Personnel
Auditing, Certification and Licensing
Auditing and Accreditation
Product Licensing
Develop and Deliver Training Programs
Run Industry Events
Administer Safety Programs
Manage API Intellectual Property
Market the Programs and IP
Collaborate with stakeholders to develop programs that sustain safety, quality, reliability and interchangeability efforts across the global oil & natural gas industry

11. API GIS Safety Programs
Center For Offshore Safety (COS)
Safety and Environmental Management System auditing and accreditation
Performance analysis and reporting – Safety Performance Indicators
Regulator collaboration
Process Safety Site Assessment Program (PSSAP)
Assessments of process safety management systems in key elements
Industry benchmarking of implementation and performance
APIQR Management System Certification
Accredited third party OHSMS, EMS and QMS auditing and certification

12. API-AOPL Pipeline Safety Management Systems Strategic Initiatives
Strategic Goals, Objectives & Initiatives 1.1
Cultivate Organizational Excellence to Generate Continuous Improvement in Pipeline Safety – Expand Holistic Safety Management Practices – Pipeline Safety Management Systems
Industry & Stakeholder Needs
Benefits & Expected Outcomes
Methods to measure SMS conformity and effectiveness
Recognize progress on the continuous improvement journey
Proactive approach to regulation
Standard third party option to support 1173 requirement
Operators implementing and conforming to API RP 1173
Continued conformity and improvement of the pipeline SMS
Safety performance improvements
Public and regulator confidence
API GIS – Long term sustainability of implementation efforts

13. Third Party Auditing program
Level 1
Level 2
Level 3
Level 4
Level 5
Learning
Developed
Implemented
Established
Improving
Did you develop it?
Do you do it?
Is it helping?
The elements required by the management system are not in place. The organization is in the process of developing an understanding for the management system
A process has been developed but documentation is incomplete
A process has been developed and documented and is in use
There is evidence of the process being used consistently. Attempts are made to assess performance
A process or other requirement meets its stated goals, objectives, targets and regulated outcomes
CONFORMANCE
CONTINOUS IMPROVEMENT
API GIS Assessment / Audit Program
Assessment / audit against RP 1173
Use of SMS Implementation team tools
Qualified assessors / auditors
Standard assessment / audit process
Identify gaps – incremental approach
Individual company metrics
Awareness Training
API GIS SMS Recognition Program
Follows assessment / audit process
Regular audit cycle
Process to close conformity gaps
Recognition for maintaining conformity
Industry improvement metrics
Recognition for going beyond conformity
Awareness & Implementation Training

14. Sustainability Operators sustaining implementation efforts
Maintain SMS conformity
Drive SMS continuous improvement
Data for benchmarking and reporting
Measure and demonstrate improvement
Groundwork for regular reporting
Program Governance
Oversight to ensure program continues to meet industry need
Collaborative efforts between committee/stakeholders and API GIS
2019 Strategic Initiative 1.1, Pipeline Safety Management Systems Activities (Draft)
Implement a sustainable long term PSMS framework to support ongoing industry RP 1173 implementation …

15. Third-Party Audit – Next Steps
Development of third-party audit option
Leverage similar existing third-party programs
API-AOPL SMS Teams develop tools and process specifics
Develop small pilot test
Simple-to-understand model – voluntary and anonymous
Audits/assessments + recognition program to sustain implementation efforts
Schedule
2017 – Development – Tools, Process, Auditor Requirements
2018 – Pilot/beta Testing and Rollout
2019 – Recognition Component
Considering third-party programs like API PSSAP (Process Safety Site Assessment Program) and AGA– don’t want to reinvent the wheel, but need program to be tailored to the pipeline industry