ILLINOIS COMMERCE COMMISSION

Darin BurkPipeline Safety Program

Manager

Significant Change

September 9, 2010 – San Bruno, CA30” Transmission Pipeline RuptureProduced Crater 72’ x 26’47.6 million cubic feet of gas releasedIgnition Occurred8 fatalitiesNumerous Injuries38 Homes Destroyed and 70 Homes Damaged

Crater and Pipe – San Bruno, CA

San Bruno, CA

Findings and Fallout

Substandard pipe had been installed in 1956Welding standards had not been metThe seam weld failedPG&E had inadequate emergency response

proceduresPG&E Public Awareness Program was

inadequateCalifornia Public Utility Commission was not

performing adequate inspections

Recommendations

Pipeline operators need to share operation and emergency response information with Emergency Responders.

Require Post-incident Anti-drug and Alcohol Tests

Spike Tests on all pre-1970 transmission linesEnhance Integrity Management ProgramsModify Transmission Lines for In-line

Inspection (Smart Pigs)

Consequences

PHMSA is under scrutiny of Congress and Public

Office of Inspector General (“OIG”) is conducting audits of PHMSA and State Pipeline Safety Programs

PHMSA – Are states doing their jobOIG – Is PHMSA doing it’s jobOIG will report to Secretary of

Transportation and Congress

Revised Pipeline Safety Act

Pipeline Safety, Regulatory Certainty and Job Creation Act of 2011 has resulted in: Advisory Notice regarding mandate leak and valve

study Study to determine if remote leak detection and remote

shut-off valves should be required on pipelines Proposal to revise the Transmission Annual and

Incident Report data reporting requirements regarding MAOP verification Would eliminate the “Grandfather” clause regarding the

MAOP of transmission pipelines and require hydro testing on that any transmission line that has not been previously hydro tested

Revised Pipeline Safety Act

What’s Coming? Maximum penalties moving from $100,000 per day to

$200,00 per violation Reduction in funding of states with inadequate

Damage Prevention Programs Study to determine if IMP inspection criteria for

transmission pipelines should be expanded beyond HCAs

Requirement to promotes awareness of the NPMS Monitoring of cast iron replacement programs Setting of specific time limits to report an incident – 1

hour from time of discovery

Revised Pipeline Safety Act

What Coming? Review of regulations regarding gathering lines Study to determine feasibility of expanded use of

excess flow valves Limitations regarding incorporation of industry

standards by the CFR Study regarding the use of minority and woman

owned businesses associated with the operation and maintenance of pipeline facilities

“Weak State”

Term being used in D.C.How will PHMSA determine a “Weak State”

Minimum Staffing Levels Inspection Day Quota Enforcement Actions

PHMSA will: Issue a warning to the State Reduce funding to State Program Decertify State Program

Is Illinois A “Weak State”

Illinois: Meets minimum staffing level Conducts the required inspections Takes Enforcement Actions Issues Civil Penalties

Illinois will: Enhance Inspection Activities Issues Civil Penalties Post Inspection Results

ICC Initiatives

Conduct comprehensive reviews of all required plans and procedures

Issue NOAs or NOPVs regarding inadequate plans and procedures

Initiate civil penalties for failure to modify the plans and procedures

Initiate civil penalties for code violations that result in an reportable incident

Initiate civil penalties for failure to respond to our notices

Impact On Operators

Enhanced Inspection Activity PA Plans DIMP Plans OQ Plans Anti-D&A Plans

Enhance Enforcement Procedures Zero tolerance regarding Code Compliance

More Stringent Enforcement Enhanced Use of Civil Penalties

How Should Operators Prepare?

Review all Plans and Procedures to: Ensure they address all code requirements Are applicable to your system

Ensure that all operator personnel are familiar with the required activities, processes and procedures included in the Plans

Follow the Code and Plan RequirementsKeep Accurate and Complete Records

Known Weaknesses

Knowledge of Plan Requirements Operators need to know what is in their plans!

Failure to implement Code and Plan Requirements Operators frequently fail to implement their own

procedures

Failure to maintain Accurate and Complete Records Some Operators fail to use their own forms

Known Weaknesses

Training and Qualification Operator personnel need to be effectively trained and

qualified

Lack of Resources Skilled personnel need assistance with scheduling and

paperwork “The Job Isn’t Finished Until the Paperwork Is Done”

Enforcement Data 2009

Probable violations found in 2009 = 135Probable violations corrected in 2009 = 53Probable violations at the end of 2009 = 120Compliance Actions taken in 2009 = 43Civil Penalties assessed in 2009 = 0Dollars assessed in 2009 = 0Civil Penalties collected in 2009 = 0Dollars collected in 2009 = 0

Enforcement Data 2010

Probable violations found in 2010 = 138Probable violations corrected in 2010 = 177Probable violations at the end of 2010 = 81Compliance Actions taken in 2010 = 37Civil Penalties assessed in 2010 = 0Dollars assessed in 2010 = $0.00Civil Penalties collected in 2010 = 0Dollars collected in 2010 = $0.00

Enforcement Data 2011

Probable violations found in 2011 = 59Probable violations corrected in 2011 = 64Probable violations at the end of 2011 = 76Compliance Actions taken in 2011 = 22Civil Penalties assessed in 2011 = 2Dollars assessed in 2011 = 800,000Civil Penalties collected in 2011 = 2Dollars collected in 2011 = 800,000

Information Resources

http://www.icc.illinois.gov/PipelineSafety/ Enforcement Data Links to the CFR Parts 191, 192, 193, 199 and Part 40 Code Updates Advisory Notices Proposed Rules Link to Operator Registry – Validation Deadline

09/30/2012 Links to PHMSA Sites Link to Emergency Responder Training

http://primis.phmsa.dot.gov/comm/reports/operator/Operatorlist.html?nocache=7941 Operator Information Emergency Responder Training Damage Prevention information Pipeline Regulations Link to National Pipeline Mapping System Community Assistance & Technical Services Link to Common Ground Alliance Emergency Planning Information

Questions?