Pipeline Safety

1. Getting to Zero Pipeline Safety New Orleans Nov. 18, 2011

2. Not Waiting to be Told: Oil Pipeline Industry Improvement Efforts November 18, 2011 New Orleans, La.

3. Environmental and Safety Gains • Since ‘90s, a record of coordinated, focused improvements • Data tracked and priorities adjusted • Pipeline Performance Tracking System • Real progress made; the numbers show …

4. Reduced Spills, Volumes (3-Year Average Ending in Year Shown) We ask ourselves: Is this a trend reversal, or a temporary plateau?

5. Getting to Zero • Industry leadership – get the curves headed in the right direction • Two dozen areas of improvement identified • The good news: most initiatives already under way • Seven Areas identified for more intense focus and development by Executive and Subject-Matter Experts

6. R&D / Enhanced Technology • Pipeline Research Council International • Individual company efforts significant – better coordination • Assessing gaps and improving funding • Renewing focus on results that can be implemented and make a difference • Priorities are: • Enhanced damage detection • Improve ILI capabilities • ID and repair ERW seam defects • Leak detection and data integration

7. Leak Detection • First focus on the large failures • Recognition • Response • Reporting • Enhance systems to prioritize SCADA notifications/alerts • Continue efforts to detect small releases

8. Enhanced Data Integration • Develop industry approach for consistent data generation, collection, processing, integration • Promote efficient and effective decision-making • Provide means for sharing learnings from data combinations • Identify and address high risk issues

9. Shared Practices & Learnings • Build on what is already working • API Pipeline Conference • Pipeline Information Exchange (PIX) • PPTS Advisories • Partner with gas industry to see how other industries learn from each other • Develop real-time learning platform • Promote learnings beyond workshops • More peer-to-peer learning • Employee and contractor safety – mirror PPTS approach

10. Damage Prevention • Excavation damage is leading cause of death and injury • Develop model One Call provisions • Promote strong damage prevention laws and enforcement • Engage directly with excavator groups • Develop education materials for other stakeholder groups • Coordinate efforts and learnings with Common Ground Alliance (CGA)

11. Strategic Planning • Structured approach to focus on the right things • Plan today to be working on tomorrow’s problems • Develop a sustainable process • Include input from key stakeholders • Prioritize and coordinate improvement efforts

12. External Communications • Communicate Industry challenges, successes, progress, and plans • Listen - understand the perspectives, concerns, and ideas of others • Discuss solutions with other stakeholders • Improve responsiveness to concerns • Sustained versus intermittent communications with stakeholders

13. In Conclusion … • Our intention … • Don’t wait to be told; lead ourselves to further improvement • Avoid merely reacting to regulations and recent events • Our goal … • Achieve real, measurable, sustainable reduction in spills and injuries • Drive to zero • Our plan … • Be focused • Listen and adjust - Look forward to more interactions with PST and others who put pipeline safety first