2010 Iowa Pipeline Safety Seminar

1. 2010 Iowa Pipeline Safety Seminar Des Moines, Iowa June 22, 2010

2. Discussion Topics • Introductions • Stage Setting Comments • Policy Initiatives Review • Regulatory Update • Non-Regulatory Initiatives Update • Concluding Remarks / Q & A

3. Introductions • Administrator – Cynthia Quarterman • Chief Counsel – Biz Scott • Associate Administrator – Jeff Wiese • Deputy Associate Administrators • Linda Daugherty - Policy and Programs • Alan Mayberry – Field Operations • Regional Directors • Dave Barrett – Central (new) • Wayne Lemoi – Southern (new) • Rod Seeley – Southwest • Chris Hoidal – Western • Byron Coy – Eastern • Emergency Support/Security - John Hess • Minor Reorganization – PEG + Information

4. Setting the Stage Current Events and Worries Congressional Attention Keeps us Busy PIPES Act Reauthorization Hearings Audits and Recommendations Heavily Driven by Accidents 10 year annual average for major consequences: 50 serious accidents / 20 fatalities / 65 injuries / $250 MM property damage Daily by excavation damage Increasingly in shared ROW’s Construction boom is worrisome Periodically, but notably, by corrosion failures E.g., Alaska, Louisiana Deepwater Horizon Fallout A Rapidly Evolving Energy Supply Picture Need for Aggressive Workforce Planning and Recruitment – Government and Industry

5. Stage Setting (cont.) • Some Givens We Have To Deal With • Change – constant and permanent state • Requires vigilance and challenging old assumptions • Requires a strong focus on continual improvement • Risk – controlling both known and unknown • Keep an eye both on frequency and consequence • Look beyond our own experience • Engage appropriate, active involvement of others • Workforce changes / shortages • Role and Responsibility of operators • Role of service providers and Quality Management Systems • Growing dependency on reliable supply • Commensurate growth in expectations • Countervailing profit pressures • Rate constraints and questioning “fair return”

6. Policy Initiatives • Data Driven • Operator Pilot & Operator Pages • Long Term Plan • New Construction Oversight • Special Permits – Performance Matters • Public Awareness Workshop/Oversight • Accelerating Enforcement • Integrated Inspections • Safety Culture Initiatives • Economic Plight of States • Gaps, Overlaps, and Alignment Study

7. Regulatory Update • Major Rulemaking Efforts & Status • Recent Final Rules • Distribution Integrity Management Program • August 2011 – Here before you know It • Control Room Management • Oversight of plans adequacy begins in Fall 2011 • Upcoming Rules • Low Stress HL’s – Phase 2: NPRM • Excavation Damage Enforcement: NPRM • Minor Rulemaking & Miscellaneous • “One Rule”: Final Rule (July) • Accident/Incident Form Changes • Annual Report Final Modifications

8. Distribution Integrity Management Program Final Rule Published August 2011 – Operators Must Have DIMP Plan, and Oversight Begins NAPSR/PHMSA Workshops Coming Outreach/Assistance Effort Continues Public website Web-casts of key rule elements AND origins** Attending other stakeholders’ meetings Supporting state seminars – such as this one

9. Non-Regulatory Initiatives Update • Damage prevention • Common Ground Alliance & Regional Partners • State Damage Prevention Assistance Program • State Damage Prevention Characterization Tool • Technology Improvements to One-Call Process • EDP Technology Deployment • 811 Promotion Campaign • Public Communications and Awareness • Stakeholder Communications, mapping & ET • ROW Encroachment – PIPA Initiative • Emergency responders – training and partners • Research and development • New technologies and knowledge

10. Concluding Remarks / Q & A For more information on PHMSA http://www.phmsa.dot.gov For more information on Pipeline Safety http://ops.dot.gov Thanks for your time & enjoy the week!