INGAA Foundation, Inc. Construction Safety and Construction QA/QC Workshop Houston, Texas. PHMSA Update on Construction and Inspection March 21, 2012

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1 INGAA Foundation, Inc. Construction Safety and Construction QA/QC Workshop Houston, Texas PHMSA Update on Construction and Inspection March 21, 2012 Alan Mayberry - 1 -

2 Today s Agenda Updates on the past two years Materials Quality 2007 to 2010 Records Management Quality Assurance and Control Management Regulatory Program

3 CY 2011 Highlights Pipeline Issues Take Center Stage Reauthorization of the PS laws After 15 Congressional Hearings Largest Civil Penalty in Our History & Echoing BP Issues Workshops R Us Risk assessment, Seam Issues, ER, Secretary LaHood s Call to Action, etc

4 A Busy Year for PHMSA We were reauthorized, with a ton of new mandates, little time, and no new resources late before we begin We have 13 new NTSB recommendations We are expecting more by Summer Marshall, MI We expect the Inspector General to have recommendations for HL pipelines Next up: State programs and oil spill response planning GAO is issuing some recommendations, and has more to do We are spooling up a lot of workshops, studies, and regs We still must oversee past regs e.g., DIMP, CRM, PA Construction - 4 -

5 Broad Changes Called for in Reauthorization Expanding the principles of IM beyond HCA s, if not HCA s too Workshop and study, with report to Hill + rule (?) Tightening up excavation damage prevention Federal enforcement (NPRM) Reducing exemptions - currently tied to grants (study) Stronger State Programs Increased staffing and more rigorous enforcement Increased Civil Penalty Amounts Faster accident notification confirmed discovery - 5 -

6 2012 & Beyond Pipeline Safety Priorities - 6 -

7 Putting 2012 in Perspective Clean Up from 2010 and 2011 Continues Pipelines on the National Stage Continues Administration Believes A Fix is Needed Critical pipeline infrastructure needs to be modernized Oversight needs to be strengthened Expecting More Ideas to Improve from NTSB, OIG, and GAO Workshops R Us Valves, Leak Detection, Data, DIMP, R&D Election Year - 7 -

8 Perspective on Past Performance - 8 -

9 Change from 1988 (Index = 1) Pipeline Safety: Context Measures ( ) U.S. population Energy consumption Pipeline Mileage All Pipeline ton-miles Incidents w/death or injury Data Sources: Census Bureau, Energy Information Administration, PHMSA Annual Report Data, BTS ton-mile estimates, PHMSA Incident Data - as of Jan. 18, 2012

10 Review of Issues Pipeline Construction Season, Quality issues - coating, welding, materials, backfill, and other general construction issues. Pipe Diameters: 20-inch through 42-inch Pipe Strength low strength Fittings low strength Welding joint geometry, repairs, & procedures Coating Quality mainly in field and some in plant

11 Construction Issues

12 Materials Quality to

13 Material Issue low strength Coating is cracking due to expansion of fitting during testing fittings

14 Material Issue low strength fittings Several major projects have installed fittings of low strength material: due to incorrect grade of material and/or lack of proper post heat treatment

15 Material Issue Low strength pipe Inconsistent mechanical properties PHMSA Advisory Bulletin (PHMSA )

16 Material Issue Poor Factory Application of Fusion Bonded Epoxy (FBE) coating 199 jeeps on pipe joint

17 Coating Disbondment Material and Construction Issue

18 Material and Construction Issue Weld misalignment (high-low)

19 Material and Construction Issues Improper Weld Transitions

20 Material and Construction Issue Weld misalignment

21 Material and Construction Issue Cracked girth weld Hydrotest failure

22 Records Management What are the first items looked at if a pipeline has an incident? Records! Material Records pipe, fittings & fabrications, etc. QA and QC Standards API, ASME, ANSI, MSS, and ASTM Tests mechanical & chemical properties, welding, NDE, and hydrotest Design and Construction Records Operations and Maintenance Records Integrity Management Records

23 Records Management Materials must be manufactured in accordance with: DOT referenced standards Able to maintain structural integrity of the pipeline: Operating pressure, temperature, and environmental conditions including outside force loads Pipe Design Designed to withstand external pressures and anticipated loads Designed for class location Hydrotest 49 CFR Part 192, Subpart J Welding and Non-Destructive Examination

24 Quality Assurance and Quality Control Management Are controls in place for QA and QC? By supplier? Does operator monitor QA and QC processes?

25 Quality Assurance and Quality Control Management What procedures and standards are being used? Manufacturers Industry API, ASTM, MSS, etc. Operators Is it a DOT Code referenced standard?

26 Looking Ahead Quality focus on Pipe, fittings, and fabrications Coatings Field Construction welding, coatings, backfill & inspection QA and QC on-site inspection Exploring options: More effective regulations and standards Timely enforcement actions Operator qualification for construction personnel Quality Management System Requirements

27 Quality Management Systems Follow up to PHMSA Construction Workshop Participated in INGAA Working Group 4 Internal PHMSA team researching in various industries Applicable beyond construction

28 Regulatory Program for Construction Construction Quality, Alternate MAOP Options under consideration: Operator Qualification Reference standards API Q1, Q2, Q3 (draft) Revised regulations for Quality Management Systems Some changes may be included in upcoming NPRM s for HL and gas pipelines

29 THANK YOU

30 Upcoming Events Emergency Responder Forum Follow-up Leak Detection Workshop March 27 th (webcast) Valve Workshop March 28 th (webcast) Data and Metrics Workshop June/July DIMP Workshop June 27 (DFW) (webcast) R&D Workshop July Various State Seminars

31 Safety - Advisory Bulletins PHMSA links Pipeline Safety Guidance Advisory Bulletins, Low Strength Pipe Guidelines, MAOP Rule FAQs Construction Workshop MAOP Rule FAQs