1. How Old is too Old? Who Makes that Decision? Alan Mayberry New Orleans, Louisiana Pipeline Safety Trust Annual Conference - 2015 - 1 - 1

2. Topics for Today What we regulate Pipeline Infrastructure Mission; Roles and Responsibilities Underlying Principles What the Code requires Issues to consider for pipe repair/replacement - 2 - 2

3. What PHMSA Regulates Pipeline Facilities by System Type – CY 2014 data as-of 11/12/2015 System TypeMiles% Miles# Operators Hazardous Liquid 199,334 7,677 Tanks 7% 456 Gas Transmission 301,81011%1,020 Gas Gathering 17,6631%367 Gas Distribution (Mains & Services ) 2,168,59981%1,373 Total 2,687,406100% Some Operators have multiple System Types Liquefied Natural Gas 115 Plants 205 Tanks83

4. 4 What PHMSA Regulates

5. Our Mission To protect people and the environment from the risks inherent in transportation of hazardous materials – by pipeline and other modes of transportation. - 5 -

6. Some of PHMSA’s Roles and Responsibilities Development and Implementation of Safety Regulations –Title 49 CFR Part 192 – Transportation of Natural and Other Gas by Pipeline –Title 49 CFR Part 195 – Transportation of Hazardous Liquids by Pipeline Perform Comprehensive Inspections Monitor and Enforce Compliance –Require remedial actions –Assess civil penalties –Criminal referral - 6 - 6

7. Underlying Principles Operator responsibility to understand and safely manage the risks (safety conditions) associated with their pipelines PHMSA’s primary role is to establish minimum safety standards (regulations) and to verify that the operators perform to these standards PHMSA also strives to impact operator performance beyond mere compliance with the regulations Focus is on PERFORMANCE 7

8. Serious Incidents All System Type rises slightly in 2014 8 29 each in CY 2014 90% Gas Distribution 7% Gas Transmission 3% LNG data as-of 2/2/2015

9. Significant Incidents - Liquids All System Types flat in 2014 Hazardous Liquid and Carbon Dioxide dips in 2014

10. Hazardous Liquid and Carbon Dioxide Significant Incidents - 10 - CY 2014 Leading Causes: Material/Weld/Equipment Failure Corrosion Other data as-of 2/2/2015

11. Significant Incidents All System Types flat in 2014 Gas Transmission rises in 2014 data as-of 2/2/2015 11

12. Gas Transmission Significant Incidents - 12 -  CY 2014 Leading Causes of Incidents: - Material/Weld/Equipment Failure - Corrosion - Natural Force Damage data as-of 2/2/2015 12

13. Pipeline Infrastructure (% by Decade in USA) - 13 - 13

14. Pipeline Infrastructure (% by Decade in USA) - 14 - 14

15. Incidents by Vintage Incidents by Vintage Gas Transmission Onshore Pipeline Significant Incident Rates per Decade – 2005 – 2014 – Incidents per 1,000 Miles data as-of 11-16-2015 - 15 - 15 46% was installed in the 1950s and 1960s

16. What does the Code require? Requires.… –design, construction, operational, maintenance & integrity procedures to help ensure safety –as pipelines age and population grows near the pipeline, additional patrolling & leakage surveys –as population grows near the pipeline Pipe change out with more conservative design factor - thicker or higher grade pipe Integrity management for high consequence areas Does not require…. –pipe replacement at a certain age The CODE is a Minimum! - 16 - 16

17. Issues to consider for pipe repair/replacement Public/Personnel Safety and the Environment Operations and Maintenance History –Coating condition – disbonded, poorly coated, shielding CP –Bare Pipe –Pipe seam type or steel quality –Cathodic Protection –Product – internal corrosiveness –Leakage –Age Incident History Legacy materials and construction How do Operators make repair replacement decisions? Risk/Consequence Models? - 17 - 17

18. Attributes of a Modern/Ageless Pipeline?? Steel – good toughness and w/sufficient wall thickness/grade Seam Type – toughness, welding, end prep to prevent cracking Coating – non-shielding to CP and durable to outside objects Cathodic Protection (CP) – coverage w/monitoring system Pressure tests – high test pressure margins & % Yield Strength Piggable – set-up for all in-line inspection (ILI) tool types ILI Program – for corrosion, dents and cracking and periodic Valves –automatic/remote controlled and located to minimize releases volume/time to shut-off Pipeline Marking – line of sight SCADA System – with numerous pressure or volume monitors along pipeline Patrols/Surveillance for - changes in class location, surface conditions, damage prevention, and leakage - 18 - 18

19. What We are Trying to Prevent! 19

20. - 20 - Thank you alan.mayberry@dot.gov phmsa.dot.gov 20