AGA s Commitment to Enhancing Safety and Other Initiatives to Improve Safety. Don Kopczynski Vice President, Opera6ons Avista November 2012

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1 AGA s Commitment to Enhancing Safety and Other Initiatives to Improve Safety Don Kopczynski Vice President, Opera6ons Avista November 2012

2 Delivering natural gas that fuels America s way of life The American Gas Associa5on, founded in 1918, represents local natural gas companies that cleanly fuel the way of life of 177 million Americans na5onwide Members deliver 92% of the natural gas in the US Today, natural gas meets almost one- fourth of the United States energy needs. 2

3 AGA s Commitment to Enhancing Safety Pipeline Construc6on Pipeline Opera6ons Safety Enhancements Safety Commitment Elements Expand Operator Qualifica5on Advance Integrity Management Safety Knowledge Sharing Ini5ate Quality Assurance Enhance Data Gathering & Tracking Stakeholder Engagement & Emergency Response Install Automa5c Valves Support Enforcement of Dig Laws Technology Development AGA s Board adopted this voluntary plan to enhance safety beyond legisla5ve & regula5ons Highlights AGA and its members commitment to the con5nued enhancement of pipeline safety Commits to Proac5ve collabora5on to improve safety Suppor5ng reasonable regula5ons Specific ac5ons to help ensure the safe and reliable opera5on of the na5on s 2.4 M miles of natural gas pipeline Recognizes significant role state regulators play in suppor5ng and funding these ac5ons 3

4 AGA s Commitment to Enhance Safety Build it Safely Construc6on Expand Operator Qualifica5on requirements to new construc5on Review oversight procedures and confirm operator prac5ces and procedures are being followed Emergency Shut- off Valves Expand use of Excess Flow Valves to branch services, small mul5- family facili5es, and small commercial Support risk based installa5on of Remote Control Valves or Automa5c Shutoff Valves sec5onalizing block valves for new construc5on Develop guidelines for considera5on of Remote Control Valves or Automa5c Shutoff Valves on transmission lines already in service 4

5 Ac6ons: Operate it Safely Integrity Management Advance Integrity Management programs & principles Collaborate with stakeholders to develop & promote effec5ve cost- recovery mechanisms Develop guidelines for data management Support processes and guidelines that enable tracking/traceability Excava6on Damage Preven6on Support strong damage preven5on laws Improve operator/excavator engagement Excava&on damage is the leading cause of serious pipeline accidents but progress is being made 5

6 AGA Commitment to Enhance Safety Maintain it Safely Share Knowledge Engage Stakeholders Find ways to more effec5vely communicate Partner with emergency responders to improve emergency response coordina5on Increase awareness of Pipeline and Informed Planning Alliance and risk based land use op5ons Advance Technology Increase investment and support of pipeline safety Research Development and Demonstra5on 6

7 Other AGA Ac6ons to Raise Bar on Safety Safety Culture Statement Engagement: DOT, NTSB, NAPSR, NARUC NARUC Emphasis on innova5ve rate mechanisms NAPSR Pipeline safety coordina5on Informa6on Sharing Best Prac5ces programs Events, inc. Execu5ve Leadership Safety Summit Publica5ons Safety Informa5on Sharing Study SOSs 7

8 Other AGA Ac6ons to Raise Bar on Safety Inves6ga6ng How to Take Safety to the Next Level Peer to Peer Reviews Data collec5on, analysis; sharing of findings Sharing of non- reportable issues in a way that does not cause undue harm to company (e.g., FAA) Enhanced industry collabora5on to share lessons learned Safety programs outside of our industry: INPO, PAS- 55, Safety Management Systems, etc Safety Resource Center for safety procedures, lessons learned, training materials 8

9 QUESTIONS? Don Kopczynski Vice President, Opera6ons Avista