Impacts of Integrity Management James K. O’Steen Deputy Associate Administrator for Pipeline Safety July 23, 2002

1. Impacts of Integrity Management James K. O’Steen Deputy Associate Administrator for Pipeline Safety July 23, 2002

2. We’ve Had A Plan for Continuous Improvement • Over the last 10 years we’ve added many dimensions to the pipeline safety program • Damage Prevention • Risk-Based, Comprehensive Integrated Approach – Integrity Management • Environmental Protection • Security/Local First Response Involvement

3. TIMELINE TO INCREASED SAFETY 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 e DP Regulation One Call Requirement Common Ground Alliance Damage Prevention (DP) One Call Study Joint Conference w/NTSB TEA-21 OPS Community Assistance - $3.5M Damage Prevention Quality Team Dig Safely Risk Assessment Prioritization Reauthorization Integrity Management Rulemakings Risk Based Comprehensive Integrated Approach Risk Management Demo Program Pipeline Safety Summit System Integrity Inspections Risk Assessment Quality Teams Advisory Committee New Tank Standards Unusually Sensitive Areas Regulation Environment EPA Agreement Oil Pollution Act Implemented National Pipeline Mapping System Mapping Quality Team FEMA Natural Disaster Study Build Water & Eco-Maps Fire Service Training SCADA Study WA Pilots DOE Agreement Security/Local First Response Involvement OPS Community Assistance - $3.5M Prep Exercises (w/Coast Guard & EPA) Electronic Town Meetings Y2K Prep 9/11 Security Planning Local RM Prospectuses USA Workshops 1981 ------Standard Pipeline Inspection Program –------On-going

5. Integrity Management • Good process • Involves all stakeholders • Uses consensus standards • Good communications • Comprehensive web site resources • Open data base • Protocols • Frequently Asked Questions • Continuous improvement process • Enforcement – tough & fair, part of continuous improvement process

6. Next Steps in Continuous Improvement • Fill regulatory gaps – Gas Integrity Management • Improve operator and regulator qualifications • Reduce pipeline excavation damage • Make national oversight uniform and share responsibility with States

7. Next Steps in Continuous Improvement Plan • Improved data • Establish meaningful performance measures • Make better use of technology • Increased security planning • Clear the agency record

8. Clear The Agency Record • One year ago 65 mandates and recommendations were outstanding • Substantially completed work on half • Strong regulatory program important for safety, confidence and future growth

9. Building Public Confidence • Improve the safety of the national pipeline system • Have effective Federal and State Regulators • Implement effective damage prevention, integrity management and operator qualifications programs • Communicate effectively with stakeholders

10. President’s Energy Policy • We must enhance the safety, integrity and public confidence in the national pipeline system in order to build the new pipelines necessary to meet the nation’s energy needs.