Subscribed Regulatory Compliance Service Update

1. Subscribed Regulatory Compliance Service Update Prepared Especially for Annual Membership Meeting Lake Lanier Islands May 3-5, 2006

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4. Agenda • Background • Services • Contract Terms • Current Status • Development Period • RP 1162 Public Awareness • Q & A

5. Municipal Gas Authority of Georgia I. Background A. Membership Driven B. GMA Gas Section Driven Meeting a Need/Providing a Solution

6. I. Background C. Mission • To assist subscribing public gas systems in achieving and maintaining compliance with federal and state pipeline safety regulations. • Available to ALL Georgia Municipal Distribution Systems • Component service available to natural gas contractors for tracking “qualified” employees • Voluntary participation

7. I. Background D. Organization • Standalone group under Member Services umbrella staffed by qualified, experienced professionals consisting of a group manager, an assistant manager/field expert and regulatory compliance analysts • General administrative and IS support, and officer oversight provided via existing resources • GMA Gas Section Executive Committee is the “steering committee” for the service

8. II. Services A. Records Management i. Standardization of forms and files (paper & electronic) ii. Centralized compliance administration iii. Web-based access for subscribers iv. Notification service B. Operator Qualification Program i. Complete administration of OQ ii. Facilitate training, testing and program updating C. Report Preparation i. OPS & EIA Annual Reports

9. II. Services D. Regulatory Representation • Monitor proposed changes, intervene as necessary and effectively communicate with subscribers • Actively participate in Operations Committees of APGA and SGA, and other relevant trade organizations • Assist subscribers before PSC OPS • Build & maintain effective working relationship • Inspection preparation & response E. System Manuals Maintenance • Operation & Maintenance Manual • Emergency Plan

10. III. Contract Provisions • Service Agreement • Identical for all subscribers • First Amendment • Identical for all subscribers • Provides for change in timing • Original commitment set for March 1, 2006 • Provides additional protections for subscribers • Early termination if two-thirds vote to discontinue service • Establishes specific Consumer Price Index for inflationary/deflationary adjustments in Base Subscription Fee and Subscription Fee Cap

11. III. Contract Provisions C. Term i. Initial commitment through December 31, 2008; annually evergreen thereafter, with a one-year termination notice requirement 1. Development phase: March 1, 2006 – August 31, 2006 2. In-service date: September 1, 2006

12. III. Contract Provisions D. Subscription Fee i. Budget established annually; draft budget available September 30th of each year with a 60-day comment period before Board approval • Initial Budget and Subscription Fees established under Agreement for March 1, 2006 through December 31, 2006 a. Base Subscription Fee: $6,000 per year b. Meter Subscription Fee: $2.52 per meter per year c. Annual Cap: Not to exceed $50,000 for any subscriber • Subscription Fees billed to match seasonal cash flows

13. III. Contract Provisions D. Subscription Fee (Continued) • Development Phase: March 1, 2006 through August 31, 2006 a. Late subscribers, those that sign-up post-March 1, 2006, are responsible for paying development costs equivalent to one-twelfth of annualized 2006 Subscription Fees for every month of Development Phase during which they did not participate (not to exceed six months)

14. III. Contract Provisions D. Subscription Fee(continued) 3. Initial Budget & Subscription Fees were based on commitment of 25 subscribers with aggregate meter count of approximately 62,500 4. Subscription Fees may be restated annually via same process as other Gas Authority Budgets, beginning 2007 (Sep. 30, 2006) a.Draft budget provided to all subscribers for review and comment on or about September 30th of each year b. 60-Day Comment Period c. Board Approval

15. III. Contract Provisions E. Liability – Participants will indemnify each other and the Gas Authority F. Clear Lines of Responsibility –Absolute clarity in responsibility between subscriber and Gas Authority

16. III. Contract Provisions • Practical Implications of Subscription Fees Contrast with … 49 CFR 190.223(a) – “Any person who is determined to have violated a provision of 49 U.S.C. 60101 et seq. or any regulation or order issued thereunder, is subject to a civil penalty not to exceed $25,000 for each violation for each day the violation continues except that the maximum civil penalty may not exceed $500,000 for any related series of violations.”

17. IV. Current Status A. Staffing Manager Bill DeFoor Asst. Manager Tim Franklin Regulatory Compliance Analyst Regulatory Compliance Analyst Regulatory Compliance Analyst Each R.C.A. would be responsible for 10-15 cities.

18. IV. Current Status B. Current Subscribers (30) Adairsville Americus Camilla Commerce Covington Eatonton Elberton Fitzgerald Fort Valley Greensboro (81,900 Meters) Hartwell LaFayette Louisville Lumpkin Madison Monroe Monticello Perry Quitman Royston Social Circle Statesboro Sylvania Thomasville Thomson Tifton Toccoa Union Point Winder Wrens

19. Development Period • Communications i. Initial Contacts with Subscribers, pending Subscribers, PSC, GMA Gas Section Executive Committee, APGA, SIF, SGA ii. On-going Dialogue via Website and Periodic Individual and Group Meetings iii. Subscribers-Only Pages on SRCS Website

20. V. Development Period B. Database i. Basic Development 1. Records Management 2. OQ Administration ii. Implementation 1. Data Collection 2. Database Population 3. Training

21. V. Development Period • RP 1162 Compliance i. In conjunction with the Gas Authority and using its Public Awareness Program & materials ii. Assist with Submittal of Self Evaluations iii. Assist with Development of Public Awareness Plans and Incorporation into O&M Manuals

22. RP 1162/Public Awareness • June 20, 2006 deadline to have a program in place • Gas Authority Public Awareness Program • delivered to Member systems in Fall, 2005 • Featuring key components of plan in easy-to-use, fill-in-the-blank format • Key messages for various audiences • Tracking grid

23. Dig Safely If you plan to dig or move, call 1-800-282-7411 at least two days before digging so the Utilities Protection Center (UPC) can mark underground utility lines. If you do not call and you hit an underground line, you could be hurt or killed. You may also be held liable for costly damages. Here are some simple excavation safety steps: Survey and Mark – Survey proposed excavation areas and mark the dig sites in white paint Call BeforeYou Dig – It is the law! At least two working days prior to starting work – 1-800-282-7411 Natural Gas Safety and You! Natural Gas: At Your Service City of XYZ City of XYZ RP 1162/Public Awareness • Customizeable Materials for Various Audiences (ongoing development)

24. RP 1162/Public Awareness E*D*U*C*A*T*E Evaluate Determine Direction Utilize Successes/Usurp Failures Communicate Assess Along the Way Test Progress/Success Evolve Your Program/Plan

25. RP 1162/Public Awareness • Evaluate • First determine your audiences’ current body of knowledge on the subject. • Determine Direction • Using the baseline data gathered in your preliminary survey, set program goals on an immediate, short-term and long-term basis.

26. RP 1162/Public Awareness • Utilize Successes/Usurp Failures • Keep doing the things that have yielded success according to the baseline data gathered and ditch the tactics that haven’t worked. • Communicate • As Nike says “Just Do It!” Get the word out • and do it often.

27. RP 1162/Public Awareness • Assess Along the Way • Sometimes goals and action plans require redirection. Be sure to look at what you are doing as you proceed on this journey and adjust accordingly. • Test Progress/Success • There’s nothing stopping you from flat out asking customers and residents for some formal • feedback on your communication program.

28. RP 1162/Public Awareness • Evolve Your Program/Plan • With all the good information you have been gathering you have the tools to grow your program and improve your plan. Use this information to “shake things up” and keep things fresh for your audience.

29. RP 1162/Public Awareness • Systems are required to assess Public Awareness Program effectiveness • APGA is offering: • GOAL: Gas Overall Awareness Level • A third-party automated telephone survey service to benchmark where system public awareness is today and its subsequent, anticipated growth over a period of years

30. V. Development Period • RP 1162 Compliance i. In conjunction with the Gas Authority and using its Public Awareness Program & materials ii. Assist with Submittal of Self Evaluations iii. Assist with Development of Public Awareness Plans and Incorporation into O&M Manuals

31. V. Development Period • RP 1162 Compliance (continued) iv. Assist in Selection of Effectiveness Evaluation Process 1. Recommend using APGA’s GOAL Program 2. Cost-Effective, Multi-Tiered Evaluation Options

32. V. Development Period • Staffing Evaluation • Analyst-to-Subscriber Ratio = 1 per 10 to 15 • Geographic Considerations • Budget

33. V. Development Period E. Identification of Possible Future Services i. Training ii. Operation & Maintenance Manual iii. Work Order Management iv. Computerized Maintenance Management System (CMMS)

34. VI. Q & A