You Don’t Always HaveTo Be Told What To Do

Christina SamesVice President Operations and EngineeringNovember 2011

Delivering natural gas thatfuels America’s way of life• The American Gas Association (AGA),

founded in 1918

• Represents over 200 local natural gas distribution companies that cleanly fuel the way of life of 175 million Americans nationwide

• Members deliver 91% of the natural gas in the US

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Meeting our Nation’s Energy Needs• CLEAN: Natural gas is the cleanest fossil fuel that

exists, and on an energy equivalent basis, emits 45 percent less CO2 than other fossil fuels.

• DOMESTIC: In 2010, 98 percent of the natural gas consumed in the United States was produced in North America.

• ABUNDANT: At current production rates, U.S. natural gas resources are estimated to be more than 2,000 trillion cubic feet (Tcf) – enough to last 100 years.

• EFFICIENT: 92 percent of the natural gas produced is delivered to customers as usable energy.

• CREATES JOBS: Natural gas comprises almost one-fourth of all energy used in the U.S. and is directly linked to 3 million jobs and economic health.

THE EXPECTATION IS SAFE DELIVERY

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Pipeline Safety Oversight Legislative

Prescriptive Pipeline Safety Act (PIPES) Reauthorized every four years

DOT National oversight Federal standards: Baseline

National Transportation Safety Board Investigates significant accidents Issues recommendations to DOT, states, industry, others

States Adopt federal standards Add other requirements; state regs on the rise

Public Want information and to be involved

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AGA’s Role to Enhance Safety• Board of Directors Safety

Committee• Safety Culture Statement• Commitment to Enhancing Safety• Best Practices Program• Plus: Conferences, workshops,

publications & technical papers, and other actions

Commitment Starts at the Top

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Board of Directors Safety Committee Board Safety Implementation Task

Group

Policy Committee Operations Managing Committee

AGA Board

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AGA Board Safety Committee Focus Areas

• Employee Safety• Gas Utility Contractor Safety• Customer Safety in Home• Pipeline Safety

Recent Products Safety Culture Statement AGA’s Commitment to Enhancing Safety Annual Executive Leadership Safety Summit

(5 held to date) AGA Safety Information Resource Center Evergreen Safety Action Plan

AGA Safety Culture Statement“The American Gas Association and its member companies are committed to promoting positive safety cultures among their employees. All employees, and others providing services to AGA members, are expected to place the highest priority on employee, customer, public and pipeline safety.”

“A positive safety culture is one in which each organization collects and processes information on the current operating and safety status of our pipeline systems and uses that information to take all appropriate steps to maintain safe operations for the public that we serve”- Excerpts from AGA’s Safety Culture Statement

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• Highlights AGA and its members commitment to the continued enhancement of pipeline safety

• Commits to • Proactive collaboration to improve safety • Supporting development of reasonable

regulations• Specific actions to help ensure the safe and

reliable operation of the nation’s 2.4 M miles of natural gas pipeline

• Recognizes the significant role state regulators play in supporting and funding these actions.

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Commitment to Enhancing Safety

• Expand OQ to new construction• QA/QC procedures associated with construction• ASV/RCVs and EFVs on new lines • Advancing IMP programs and principles • Developing guidelines for data management• Processes/guidelines that enable tracking/traceability• Support strong enforcement of 811• Improve engagement between operator & excavator• ID/implement models to enhance safety knowledge

exchange• Evaluate & implement ways to improve communications

on the presence of PLs• Partner with emergency responders• Increase awareness of PIPA• Increasing investment and participation in R&D

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Specific Actions

Other Actions to Raise the Bar on Safety• “Smart modernization” of infrastructure

• Determine a PL’s fitness for service• Action based on condition, not age, material or

lack of coating• Must take into account impact on customer

• Stay focused on current key initiatives to improve safety • DIMP, TIMP, damage prevention, industry’s

voluntary initiates, public awareness, control room mgmt., etc

•Exchange/share best practices, lessons learned

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AGA Operations Best Practices Program

• Identifies procedures of top-performing companies and innovative work practices that may be used to continuously evaluate and improve participants’ unique operating systems

•Three focus areas:•Benchmarking•Roundtables•Questionnaires

Other Actions to Improve SafetySafety Information Sharing Study • Joint project of the US and Canadian

Pipeline Trade Associations (RCP contractor)

• Comprehensive study to explore initiatives currently utilized by other sectors in the economy, as well as the pipeline industry

• Hope to identify and implement a model that will measurably improve PL safety

• Study to be completed as early as 2/12

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Other Actions to Improve SafetyPublications to ensure consistency • Fitness for Service (Distribution, Transmission)• Automatic & Remote Control Shutoff Valves• Excess Flow Valves beyond SFHs• MAOP• Records• Plus many more…

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Challenges Vary• Diversity of systems and local economies • Older cities may require significant investment for

modernizing the infrastructure• Younger cities may have expanding population/tax

base and relatively new infrastructure• Commissions and operators must continue to provide

customers with natural gas safely, reliably and cost effectively

• Must manage existing infrastructure and finance “smart modernization”

AGA’s messages• Support thoughtful legislation and

regulation

• Diversity of systems and local economies

• Commissions and operators must continue to provide customers with natural gas safely, reliably and cost effectively

• Must manage existing infrastructure and finance “smart modernization”

• AGA is committed to working with other stakeholders to continue to enhance safety

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Christina SamesVice President, Operations and Engineering

csames@aga.org

QUESTIONS?