Integrity Management of Pipelines: Getting Product to Market Safety

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1 2014 Canadian Oil Sands Summit Integrity Management of Pipelines: Getting Product to Market Safety Dennis Zadery, P.Eng. Manager, Integrity Division February 2014 Design with community in mind

2 Overview Failure Root Cause IMP Industry Culture Industry Activities Case Studies Summary

3 Root Cause Immediate cause is technical (metal loss, crack, dent etc) However, root cause is almost always linked to series of decisions (human factor)

4 IMP Framework Integrity Management Program (aka PIMS) Framework to Manage Risk 16 Elements of Annex N Regulatory/Standards Change CSA Z Clause 3 - Safety and Loss Management (brand new section in 2011) CSA moved from design to life cycle (cradle to grave)

5 Key Elements Org Chart Roles and Responsibilities (N3) Training and Competency (N7) Records Management (N5) Hazards (N8) and Risk Assessment (N9) Inspections (N12) and Evaluations (N13)

6 IMP Requirements Industry Recent Quebec project required IMP for Activities construction approval (regulatory requirement) Prepared IMP framework for 2 start-up pipeline companies since 2009 (no prior operating history or corporate standards) IMP now considered part of project management (from FEED to operations)

7 IMP Industry Review Third party review of pipeline regulatory framework in 2012 (Alberta Pipeline Safety Review) Alberta most advanced regulatory regime in Canada Most of world is safety case or goal performance driven (UK, Australia, Norway) Canada/US are hybrid of goal vs prescriptive

8 IMP is now HSE (EHS) Corporate Culture Top Down years ago HSE became culture, IMP following same path Recent Third Party and regulatory reviews confirm this culture is real (variety of company sizes) Detailed procedures and processes to make consistent IMP decisions (one company case for over 40,000 line segments)

9 IMP Key Performance Indicators Total reportable incidents per 1000/km (lagging) Leading - Proactive Number of complete system assessments done per year Number of inspections done per year Number of defects repaired per year

10 Career Development Industry Knowledge Transfer Integrity management is now a career choice U of C Two Year course - M Eng in Pipeline Engineering NACE - new courses and standards in last 5 years (Internal corrosion, coatings and CP, Direct Assessment Standards, Pipeline Inspection Course) Young Pipeliners Association (2 nd year of existence)

11 Industry Collaboration CEPA working groups (Integrity First) Banff Pipeline Workshop (Every 2 nd year since late mid 1990 s) NACE Events delegates at National Conference every year, at local conferences IPC over 2000 delegates and 14+ technical tracks

12 Case Studies

13 Hazard Assessment During Design Workshop Setting SME s Documented Discussions and Results Delineate whether construction, commissioning or operations related

14 Hazard Mitigation

15 Engineering Studies Scope of Work

16 Spill Consequence Modelling

17 Pre-Build HDD

18 IMP - Pre-Build HDD 1. Proper coating selection (Mill and Field for Geotech Conditions) 2. Enhanced Welding Inspection (Phased Array vs just RT) 3. Post Installation External Coating Quality Test (Possible CP Upgrades if needed) 4. Post Installation Geometry Inspection 5. Post Installation Purge and Lay-up (Possible Chemical Inhibition) 6. Interim CP Plan - Until Tied into Mainline CP System

19 Summary Pipeline Industry under intense scrutiny Industry implementing lessons from past failures Integrity Planning is now part of Project Planning Following CSA lifecyle approach effective IMP can minimize hazards and increase reliability (safety)

20 Next Steps - Areas to Focus On Continued training of contractors (ie. NACE Coating Applicator Course) Increased utilization of advanced technologies (automated welding, automated UT inspection) Improved mentoring and succession planning of senior specialists

21 Closing Improve your understanding that the industry is proactively solving these integrity issues These management programs are transferrable to other industries (oilsands plants, petrochemical plants, refineries)

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