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Pipelines & Risk Based Management

Pipelines & Risk Based Management. How Safe is Safe?. How Safe is Safe?. Energy Transportation Network What does safe operation require? What does risk management provide? Hazardous Liquid IMP Rule What is Risk? Pipeline Threats Recent industry performance.

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Pipelines & Risk Based Management

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  1. Pipelines & Risk Based Management How Safe is Safe? Joe Killins & Associates, LLC

  2. How Safe is Safe? • Energy Transportation Network • What does safe operation require? • What does risk management provide? • Hazardous Liquid IMP Rule • What is Risk? • Pipeline Threats • Recent industry performance Joe Killins & Associates, LLC

  3. Energy Transportation Network • 160,000 miles of onshore and offshore Hazardous Liquid Pipelines • 298,000 miles of onshore and offshore Gas Transmission Pipelines • 1,850,000 miles of Natural Gas Distribution pipelines Joe Killins & Associates, LLC

  4. Pipelines Are A Long Term Asset • 67% of Hazardous Liquid Pipelines built before 1970 • In-service degradation can be mitigated • Corrosion control – Cathodic Protection and Coatings • Trained personnel • Protection from 3rd Party Damage • Testing with smart and smarter pigs; non-destructive testing; other inspection • Timely Repairs and maintenance Joe Killins & Associates, LLC

  5. Safe Operation Requires: • Sound system design; • Selection and use of qualified materials; • Proper construction; • Thorough and adequate inspection, testing, maintenance and repair; • Continuous system monitoring and control; • Operations conducted by trained and qualified workers; • Implementation of damage prevention best practices; • Identification and mitigation of risks; and • Coordination and preparation for emergency response. Joe Killins & Associates, LLC

  6. Risk Management Should: • Identify needs • Analyze cost vs benefit of various choices • Establish an operating discipline • Measure all the processes • Continuously improve all aspects of the operation Joe Killins & Associates, LLC

  7. Hazardous Liquid IMP Rule • IMP Rule March 2001 • Identify segments that could affect HCAs by December 31, 2001 • Written IMP by March 31, 2002 • Assess 50% of segments by September 30, 2004 • Complete Baseline Assessments by March 31, 2008 Joe Killins & Associates, LLC

  8. What is Risk? • Risk is a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event. In everyday usage, "risk" is often used synonymously with the probability of a loss or threat. In professional risk assessments, risk combines the probability of an event occurring with the impact that event would have Joe Killins & Associates, LLC

  9. Risk Assessment Methods Risk = Likelihood x Consequence Joe Killins & Associates, LLC

  10. Pipeline Threats • Time Dependent • External corrosion • Internal Corrosion • Stress Corrosion Cracking • Stable • Manufacturing Related Defects • Defective pipe seam • Defective pipe Joe Killins & Associates, LLC

  11. Pipe Threats • Welding/Fabrication Related • Defective pipe girth weld • Defective fabrication weld • Wrinkle bend or buckle • Stripped threads/broken pipe/coupling failure • Equipment • Gasket O-ring failure • Control/Relief equipment malfunction • Seal/pump packing failure • Miscellaneous Joe Killins & Associates, LLC

  12. Pipe Threats • Time Independent • Third Party/Mechanical Damage • Damage inflicted by first, second or third parties (instantaneous/immediate) • Previously damaged pipe (delayed failure mode) • Incorrect operations • Incorrect operational procedure • Weather Related and Outside Force • Cold weather • Lightning • Heavy rains or floods • Earth Movement Joe Killins & Associates, LLC

  13. Uses of Risk Management • Prioritization of Line Assessment Schedules • Selection of Assessment Methods • Elimination of tens of thousand of integrity threats • Preventive and Mitigative Measures • Implementing damage prevention best practices • Enhanced cathodic protection monitoring • Set appropriate inspection intervals • Enhanced training • Installing EFRDs • Modifying leak detection and pressure monitoring systems Joe Killins & Associates, LLC

  14. Joe Killins & Associates, LLC

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