Resources for Integrity Management

1. Resources for Integrity Management Marty Matheson, American Petroleum Institute OPS Public Meeting August 8, 2001 Houston, TX

2. OPS Integrity Management Goals • Accelerate integrity assessment of pipelines in high consequence areas • Improve integrity management systems within companies • Improve the government’s role in reviewing adequacy of integrity plans • Provide increased public assurance

3. Our vision is an oil pipeline industry that -- • conducts operations safely and with respect for the environment; • respects the privilege to operate granted to it by the public; and • provides reliable transportation of the crude oil and refined products upon which America and all Americans rely.

4. The History: Improving Record, 1968-2000 First six years, Annl Avg: 359 spills; 368,000 barrels Last six years, Annl Avg: 169 spills; 146,000 barrels Source: RSPA 7000-1

5. Resources on the Industry Safety Record • The U.S. Oil Pipeline Industry’s Safety Performance (Trench report), 1999 (with update to be issued in the near future) • API Publication 1158, Analysis of DOT Reportable Incidents for Hazardous Liquids Pipelines (1986-1996) • Annual review of pipeline accidents by ASME B31.4 Committee

6. ASME Causes:Volumes Lost, 1994-99 3rd Party Corrosion Equipment “Miscellaneous” Weather Incorrect Operation Prev. Damaged Pipe “Unknown” Manufacturer Constr/Repair Vandalism 37% 4% 17% 18% 13% 38% 16% 3% 1% 26% 6% 9% 7% - 5% 0% 4% - 2% 2% 1% - Line Pipe: Tank/Pump: 100% 100% Based on re-examination of OPS data by B31.4 Committee of the American Society of Mechanical Engineers. “Tank/Pump”: tank farms, pumping stations, all other system parts

7. An Upcoming Report -- • Oil Pipeline Characteristics and Risk Factors: Illustrations from the Decade of Construction • Authors – • Cheryl Trench, Allegro Energy Group • John Kiefner, Kiefner & Associates • Analyses of data from the Pipeline Performance Tracking Initiative

8. Pipeline Performance Tracking • Incidents down to 5 gallons • 20 cause categories based on ASME • Detail, detail, detail • Over 140,000 miles of pipe or more than 90% of OPS mileage • Infrastructure information • Miles by diameter • Miles by decade of construction, etc.

9. Oil Pipeline Characteristics and Risk Factors • History of pipe and pipeline technology • Data on pipeline mileage by decade of construction • Analyses of OPS incident data (1986-1999) based on the historical perspective of technology and practices and the decade of construction • Findings and recommendations for use in risk analysis

10. 23% 22% 17% 13% 9% 7% 7% 2% <1% Pipeline Mileage by Decade of Construction Compare PPTS 143.6 K miles with: 157 K OPS User Fee Miles (91%) 200 K Estimated Total Miles (72%) Survey Miles Decade of construction data from Pipeline Performance Tracking System updated 05/29/01

11. All Incidents and Pipeline Miles by Decade of Construction If share of incidents () is higher than share of miles (), decade has a high rate of incidents per mile. If lower, decade has a low rate. Causes based on Kiefner & Assoc. classification for ASME B31.4 Committee, 1986-99; line pipe only; excludes incidents where year of installation was unspecified.

12. Findings and Recommendations • General findings • Specific recommendations for pipe • Pre-1930s • 30s and 40s • 50s and 60s • 1970 and later

13. Our vision is an oil pipeline industry that -- • conducts operations safely and with respect for the environment; • respects the privilege to operate granted to it by the public; and • provides reliable transportation of the crude oil and refined products upon which America and all Americans rely.