applicability of oq for new construction activities oq vf 2012.pdf · oq for new construction...
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Applicability of OQ for new construction activities
Addressing abnormal operating conditions during
evaluations and at job site
Span of Control limitations
Tracking OQ during O&M activities & projects
Addressing the “gap” between qualification and
Operator-specific procedures
Properly monitoring/maintaining programs
Recent regulatory OQ findings and expectations
Operator Qualification (OQ) Rule
The OQ Rule is intended to provide an additional level
of safety and requires pipeline Operators to develop a
qualification program to evaluate an individual’s
ability to perform covered tasks and to recognize and
react to abnormal operating conditions that may occur
while performing covered tasks.
Operator Qualification (OQ) Rule
OQ is not intended to be a one-time event, but a
process that continues for the working lifetime of an
individual.
After initial evaluation and qualification have been
completed, re-evaluation and requalification is
required.
The Operator must recognize this and designate for
each covered task an appropriate time interval for
requalification.
Why do we need qualified individuals…
OQ for New Construction Activities
Is OQ required for new construction?
Tie-ins
80% AMAOP
Special permits
PHMSA covered task list
New group of contractors/personnel
Regulatory agencies’ expectations
Abnormal Operating Conditions (AOC’s)
Abnormal operating condition means a condition
identified by the operator that may indicate a
malfunction of a component or deviation from normal
operations that may:
(a) Indicate a condition exceeding design limits; or
(b) Result in a hazard(s) to persons, property, or the
environment.
Abnormal Operating Conditions (AOC’s)
Qualified individuals must be able to recognize and react
appropriately to AOC’s.
Recognize: means that the employees are able to
identify a situation or event on the pipeline that is out
of the ordinary and could become a hazard to the
public or environment, if not promptly corrected.
React appropriately: means the employee knows what
to do to ensure that the hazard is promptly addressed.
This could include notifying the employee’s
supervisor or site inspector or taking the correct
action to mitigate the hazard, whichever is appropriate
for the AOC.
How do you address AOC’s?
Task-specific versus generic
PHMSA OQ FAQ - Operators are expected to develop a thorough
listing of AOCs, both task-specific and generic. The task-specific
AOCs may be included within the evaluation criteria for the specific
task, but the generic AOCs should be maintained in a separate list
and reviewed periodically.
PHMSA Integrated Inspection Guidance - In addition to task-
specific AOCs (i.e., those that may be caused by performance of the
task), generic AOCs (i.e., those that may reasonably be encountered
during performance of the task) have been identified and used in
qualification in cases where special requirements and conditions for
the task being performed must be considered.
During evaluation
At the job site
Span of Control (SOC)
No one can perform a covered task unless they are
specifically qualified to perform that task or are directed,
observed and supervised by a qualified individual (if
span of control is allowed) as outlined in the OQ plan
Sample Covered Task List
Span of Control (SOC)
A SOC ratio of 1:3 would mean that one qualified
employee could direct, supervise and observe up to
three unqualified employees.
Span of Control Expectations
Assure that a qualified person is always present
during activities where a covered task is being
performed
Assure that all individuals, qualified and non-qualified,
understand the requirements
Consider any conditions that may impact the SOC
ratio, such as:
Language Barriers
Noise Level
Weather
Regulatory agencies’ expectations
“Sniper” Observations
Tracking OQ during Projects
Identify applicable covered tasks for the
activities that will be performed
Communicate requirements to all affected
personnel
Assure personnel are qualified to perform the
applicable covered tasks
Obtain/maintain qualification records
Tracking OQ during Projects
Track personnel who actually performed
task(s) Need to identify individual for each covered task
Inspectors’ role?
How often do you verify qualifications and identities?
Who worked under SOC?
Record Discussions AOC’s (Site-Specific)
SOC limits & adjustments
Procedures/policies
Should be considered part of QMS
Regulatory agencies’ expectations
The “Gap”
Task criteria versus Operator procedures Use of “off-the-shelf” covered tasks
How is it addressed? Need to demonstrate that the person in the “ditch” is aware of
procedures
Best Practices Tailgate meetings
JSA’s
Training
Regulatory agencies’ expectations
Program Monitoring/Maintenance
Need to periodically review program
ADB 12-09: each calendar year, not to exceed 15 months
Need to review rules and references for additional
covered tasks
Recent changes incorporated further references
Need to develop method for employee feedback
Changes in procedures
Additional potential AOC’s
Need to periodically review personnel performance
OQ needs to be considered during accident/incident
investigations
Consequences of
Non-Compliance
PHMSA Enforcement Actions
The Pipeline Enforcement Program has a number of different
mechanisms to assure operator compliance and safe operation.
Including:
• Letters of Concern
• Warning Letters
• Notice of Amendment
• Notice of Probable Violations
• Corrective Action Orders
• Notice of Proposed Safety Order
The Pipeline Safety, Regulatory Certainty, and Job Creation Act of
2011 increased the civil penalty authority of PHMSA to a maximum
of $200,000 per violation per day, up to a maximum of $2,000,000 for
a related series of violations.
PHMSA Enforcements Issued
2002 – April 2012
• Corrective Action Orders 92
• Notice of Probably Violation 640
• Notices of Amendment 844
• Warning Letters 945
• Notices of Proposed Safety Orders 11
• Civil Penalties 462
Proposed Penalties $41,000,000
Assessed Penalties $26,000,000 (Does not include 2012 Penalties)
Criminal Penalties
Criminal penalties may be taken: If any person willfully and knowingly violates a pipeline safety
requirement is subject to a fine of not more than $25,000 for each
offense, imprisonment for not more than five years, or both.
If any person willfully violates a regulation for off-shore gathering lines
is subject to a fine of not more than $25,000 for each offense,
imprisonment for not more than five years, or both.
If any person willfully and knowingly injures or destroy any interstate
pipeline facility, is subject to a fine of not more than $25,000 for each
offense, imprisonment for not more than 15 years, or both.
If any person willfully and knowingly defaces, damages, removes, or
destroys any pipeline sign, right-of-way marker, or marine buoy, that
individual is subject to a fine of not more than $5000 for each offense,
imprisonment not to exceed one year, or both.
OQ Protocol Summary Statistics
Significant Protocol Areas Potential Issues
/Overall Inspections
% PI
4.02 Abnormal Operating Conditions (AOCs) 2116 / 5998 35.3
3.01 Documentation for Individual on CTs 2018 / 5998 33.6
8.02 Notification of Program Changes 1130 / 3563 31.7
2.02 Evaluation Methods for KSA’s 1895 / 5998 31.6
7.01 Qualification Trail 1880 / 5998 31.3
Examples of Recent OQ Civil Penalties
2009 – Operator failed to identify a covered task (hot tap)
nor had anyone properly qualified: $100,000 fine assessed
2009 – Operator failed to identify a covered task (threaded
fitting assembly: $133,100 fine assessed (being contested)
2010 – Operator did not enforce SOC properly: $100,000
fine assessed (being contested)
2010 – Operator allowed unqualified personnel to perform
covered tasks; $271,300 fine assessed (being contested)
2010 – Operator failed to identify a covered task (mud
plugs) nor had anyone properly qualified: $788,000 fine
assessed
2010 – Operator failed to identify covered tasks nor had
properly qualify personnel: $98,600 fine assessed
What the Future may bring
On the horizon: New construction and inspection tasks may be
included
Activities based on incorporated references Routine monthly break-out tank inspections
Expansion of pipeline facilities All gathering lines
Well heads
Underground storage facilities
Verification of contractor knowledge of Operator
procedures
Documentation of qualified individual that actually
performed the task (who wrapped that pipe, etc.)
More in-depth inspections