1. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR Title slide PIPELINE QRA SEMINAR

2. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Content slide, two columns with image

3. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR A Study conducted in late 1990-ies by The Institute for Transportation at The New Jersey Institute of Technology compared the Regulations of various countries. The study was conducted as a result of the 1994 “Edison Incident in New Jersey ” – a failure of a 36” Gas Pipeline which caused the destruction of 14 apartment buildings. The Study was titled: “EFFECTIVENESS OF U.S. AND INTERNATIONAL PIPELINE REGULATIONS WITH REGARD TO LAND USE PLANNING” RULES AND REGULATIONS

4. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Conclusions reached in The Study: 1. All the regulations reviewed (i.e., U.S. and international) approach the siting and regulation of pipelines in urban areas in a similar fashion. The intent of the regulations is not to provide "safe separation distances" between pipelines and the public; rather, it is to minimize the probability of occurrence and the impact to life and property due to an incident in more densely populated areas by imposing stricter regulations during the siting, construction and operational phases of the pipeline sited in populated areas.

5. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Conclusions reached in Study (ctd.): 2. Analysis of the incident database demonstrates that pipelines are generally sited in rural or undeveloped areas. Also, the damage resulting from an incident in highly developed areas is generally less than in rural areas. This demonstrates the effectiveness of regulations in reducing operating stresses in more densely populated areas. 3. Local land use regulations in New Jersey have not materially changed as a result of the Edison incident in 1994. Although the Township of Edison has recently enacted a new ordinance restricting the erection of new buildings in the township within 75 to 125 feet of distribution, gathering or transmission lines, most municipalities in the region still rely on the public to make the determination of whether they wish to live in a particular community. However, more municipalities are requiring that applicants inform prospective buyers of the location of potentially negative factors such as proximity to transmission lines prior to the purchase of dwelling units and/or other structures.

6. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Conclusions reached in Study (ctd.): 4. It appears that the U.S. pipeline regulations and the current practice of the operators are appropriate to minimizing risk while maintaining the viability of the pipeline industry. To this end, the current research thrust by the USDOT is in the area of risk management program development by respective pipeline operators to further improve risk management and make same more cost effective.

7. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Europe - General: REGULATION (EC) No 715/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005 of 13 July 2009 Standards: Different standards are used across Member States - both for technical construction and daily operations. A higher degree of standardization will ease the integration and transmission among countries. This will also improve the project execution and the timely delivery of future projects

8. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Denmark: Rules and Regulations can be accessed at: http://www.energinet.dk/EN/GAS/Regler-for-gastransport/Sider/default.aspx

9. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS UK: Rules and Regulations can be accessed at: http://www.hse.gov.uk/pipelines/ http://www.hse.gov.uk/pubns/books/l82.htm

10. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Germany:

11. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Germany (Ctd.):

12. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Germany (Ctd.):

13. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS United States: Rules and Regulations can be accessed at: DOT: http://www.phmsa.dot.gov/pipeline/regshttp://www.phmsa.dot.gov/pipeline/regs NTSB: http://www.phmsa.dot.gov/pipeline/regs/ntsbhttp://www.phmsa.dot.gov/pipeline/regs/ntsb

14. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR RULES AND REGULATIONS Georgia: Rules and Regulations are listed in: Decrees for Main pipelines rev1 Draft bof new Georgian regulation, Safety Zones, 19.06.14 rev 1

15. SEPTEMBER 8-12, 2014 INOGATE PIPELINE QRA SEMINAR END OF RULES AND REGULATIONS End slide