1. Lessons Learned….. Were PG&E practices an anomaly or the tip of a bigger problem? How would we know? 2011 Pipeline Safety Trust Conference – Getting to Zero November 17, 2011

2. Evolution of Pipeline Safety Regulations, standards and operating practices continue to evolve producing continuous improvement Regulations, standards and operating practices continue to evolve producing continuous improvement1925193019351940194519501955196019651970197519801985199019952000200520102015 2001-02 Pipeline Safety Act amended IMP & ASME B31.8S 2012 Operators will complete baseline assessments in HCAs 1928 API 5L First standard for pipeline 1951 American Standard Code For Pressure Piping 1970 First DOT Regulations 2010 INGAA forms Task Force on Pipeline Safety 1998 DOT Risk Management Demonstration Projects

3. What are these Practices? What are the Assets? What are the Business and Regulatory Models? What is the Culture? What are the Communication Practices? 3

4. Do you have confidence in Assets? Physical Infrastructure  Inventory  Operations  Integrity Management Information Management  Asset Management  Decision Support Systems Human Resources  Employees  Management  Suppliers  Professional Support 4

5. Do you have confidence in the Business and Regulatory Models? Safety Policy and Practices  Pipeline Company and their Service Providers  Industry Associations  Regulatory Agencies –PHMSA –State Partners  Legislative Federal and State Economic Policy and Practices  Intrastate –50 Individual States  Interstate –Federal Energy Regulatory Commission 5

6. Do you have confidence in the Culture? Culture  Company  Industry –INGAA –AGA –R&D Organizations  Other Industries  Regulatory & Legislative –PHMSA –State Safety Agencies –Economic Regulators –Legislators 6

7. INGAA Board Pipeline Safety Task Force Formed in January 2011 Lead by Alan Bradley (Questar) Steering team formed to develop & implement INGAA Pipeline Integrity Strategic Plan Four work streams under the direction of the Task Force Work- Streams Focus Areas Commitment & Communications Integrity Management Continuous Improvement Legislative Stakeholder Communication Federal Energy Regulatory Commission Research & Development Pipeline Safety Re-Authorization Improvements in Operational Practices Cost Recovery Mechanisms

8. INGAA 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. 8

9. INGAA’s View on What is Needed? Holistic Approach to Pipeline Safety INGAA plans to work together with key stakeholders and PHMSA to accommodate NTSB’s concerns, striking a balance between safety benefits and disruptions of service, and prioritizing those actions which yield the greatest reduction in risk. Reauthorize Pipeline Safety Act Stronger state and federal excavation prevention measures Industry  R&D  Share lessons learned  Infuse best practices  Invest in next generation of workers and safety tools  Make safety culture an integral part of the pipeline industry day in and day out 9 Effective pipeline safety is a shared responsibility - and requires active engagement between operators, the government and the public

10. Integrity Management Continuous Improvement Action Teams 1. Stakeholder Outreach Two-way communication with meaningful performance measures. Actively promote PIPA (Pipeline and Informed Planning Alliance) 2. Risk Management Apply risk management concepts beyond High Consequence Areas (HCAs) with comprehensive threat analysis 3. Integrity Management Tools Enhance corrosion control methods and anomaly management protocols 4. Pipelines Built Prior to PHMSA Regulations Develop inventory and protocols to manage integrity 5. Technology Development & Deployment Improve crack-detection tools & management Work with PHMSA to produce a R&D road map, and Define assessment alternatives for non-piggable lines 6. Management Systems Apply safety culture principles to drive learning across the industry 7. Emergency Preparedness Response Update isolation valves automation and enhance public awareness 8. New Construction Fully implement the 2010/2011 INGAA Foundation Pipe and Construction Action Plans 9. Storage Clarify regulatory oversight for storage facilities 10

11. INGAA Members 9 Step Action Plan 11  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  Improve Integrity Management Communication and Data  Implement the Pipeline and Informed Planning Alliance (PIPA) Guidance  Evaluate, Refine and Improve Threat Assessment and Mitigation  Implement Management Systems across INGAA Members  Provide Forums for Stakeholder Engagement and Emergency Officials

12. References on INGAA Policies and Positions INGAA Web Site Pipeline Safety Section  http://www.ingaa.org/Topics/Safety.aspx http://www.ingaa.org/Topics/Safety.aspx INGAA Positions supporting “DOT Report to America”  http://www.ingaa.org/Filings/15735.aspxhttp://www.ingaa.org/Filings/15735.aspx INGAA Initial Policy Filing to PHMSA ANPRM  http://www.ingaa.org/Filings/16943.aspx http://www.ingaa.org/Filings/16943.aspx INGAA Member Companies  http://www.ingaa.org/Members/963.aspx http://www.ingaa.org/Members/963.aspx INGAA Foundation Member Companies  http://www.ingaa.org/Foundation/FoundationMembers.aspx http://www.ingaa.org/Foundation/FoundationMembers.aspx 12