South Dakota Gas Pipeline Safety Program

1. South Dakota Gas Pipeline Safety Program 2011 Summary

2. State Program General • Number of operators • 2011 year end total 13 • # of additions since 2010 1 • # of deletions since 2010 1 • Comments • Number of inspectors • 2011 year end total 1.1 • Change from year end 2010 0

3. Program Operational Overview • 2 inspectors: Josh 85 %, Nathan 28 % inspector, 72 % Program Manager • 85 inspection days per year required, 126 in 2011 • Complete regulation review once every two years • Year 1 (2011): corrosion, patrolling, leak surveys, OQ, TIMP • Year 2 (2012): welding, fusion, drug and alcohol, DIMP, PA

4. Municipals Crooks Municipal Gas Garretson Municipal Gas Humboldt Municipal Gas Watertown Municipal Gas Private Distribution Mid-American Energy Montana-Dakota Utilities Northern Natural Gas NorthWestern Energy Transmission Basin Groton CT Pipeline Basin Deer Creek Black Hills Power Montana-Dakota Utilities NorthWestern Energy South Dakota Intrastate Pipeline Sioux Falls Sanitary Landfill Gas Pipeline Xcel Angus Anson Pipeline Covered Operators (13)

5. 2010 Year End Gas Statistics for South Dakota • Gas transmission mileage 222 • Gas distribution mileage 4,483 • Number of gas services 202,990

6. SD Gas Distribution Federal Reportable Incident Summary1998 – 2011

7. Enforcement Statistics 2011

8. Declaratory Ruling -Pipeline Classification • It is possible to have a transmission line under 20 % SMYS. • A distribution center begins at the location of title transfer. • A pipeline feeding a large volume customer is no longer distribution if it is < 20 % SMYS but must be downstream of a distribution center to be distribution. • This could affect operators that may in the future have a large volume customer tapped into an interstate transmission line at a point other than a distribution center with a line operating at < 20 % SMYS.  In such a case, this may now possibly be transmission rather than distribution.

9. Major Construction Activity • None • System expansion activity in distribution systems • No new transmission lines

10. Special Permits Requested / Granted • None in 2011

11. 2011 Highlights • Completed TIMP Protocol A inspections on all transmission operators • Completed 5 public awareness inspections with new form • Completed 5 DIMP inspections • Josh Williams completed majority of training for new inspectors • Made recommendation to implement mandatory damage reporting • Conducted 3 construction inspections • Participated on federal/state DIMP implementation team • Coordinated and led a joint multi state DIMP inspection

12. 2011 Highlights Continued • Completed comprehensive OQ plan and field audits on all operators • Inspected all operators in following areas: • Corrosion and cathodic protection • Line markers • Patrolling • Leakage surveys • Emergency valves • Excess flow valves • Pipe on structures

13. Pipeline Program Metrics 2010

14. 2012 Outlook • Cast iron/bare steel replacement begins in Sioux Falls • One Call Board decision on supporting mandatory damage prevention • Records Inspections: • reporting requirements and emergency plans • test requirements • welding and fusion • damage prevention • MAOP, regulator and relief valves • Drug and alcohol inspections • Plan and operator records • Provider site inspections

15. 2012 Outlook Continued • New regulations • Finish DIMP inspections • Begin Control Room Management inspections • Finish Public Awareness inspections with new form • Training - Webinar on Pipeline Safety, Regulatory Certainty and Job Creation Act of 2011 • Inspector Training: • Complete 3 remaining T & Q courses by pipeline staff • Inspector training outside of T&Q Courses (NACE certification, IMP, etc.) • Operator Training: • Hold quarterly operator training webinars • Preparations to host 2013 Pipeline Safety Operator Training Seminar