Who Oversees the Safety of Oil and Gas Pipelines? Council of State Governments West July 30, 2015 Vail, Colorado

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1 Who Oversees the Safety of Oil and Gas Pipelines? Council of State Governments West July 30, 2015 Vail, Colorado

2 Pipeline and Hazardous Materials Administration U. S. Department of Transportation (DOT) OST OIG SLSDC FAA FTA FMCSA STB PHMSA FRA MARAD HMT OPS FHWA NHTSA

3 - 3 - Office of Pipeline Safety Policy and Programs Field Operations Program Development Standards and Rulemaking Engineering and Research State Programs Enforcement Training and Qualifications Emergency Support and Security Response Regional Offices Eastern Southern Central Southwest Western

4 - 4 - PHMSA Regional Offices

5 - 5 - Our Mission To protect people and the environment from the risks inherent in transportation of hazardous materials by pipeline and other modes of transportation.

6 - 6 - Underlying Principles PHMSA has regulatory oversight only of transportationrelated pipelines. It is the responsibility of pipeline operators to understand and manage the risks associated with their pipelines PHMSA s primary role is to establish minimum safety standards (defined by required risk control practices) and to ensure that operators perform to these standards PHMSA also strives to impact operator performance beyond mere compliance with the regulations

7 - 7 - What We are Trying to Prevent

8 What We Regulate Pipeline Miles by System Types end of CY 2013, as-of 9/17/2014 System Type Miles %Total # Operators Hazardous Liquid 192,396 7% 441 Gas Transmission 302,825 11% 990 Gas Gathering 17,429 1% 356 Gas Distribution (Mains & Services ) Total 2,644,341 2,148,519 81% 1,358 Some Operators have multiple System Types Liquefied Natural Gas 133 Plants 203 Tanks 83

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10 What does PHMSA do? Pipeline Safety Develop inspection and enforcement standards for design, construction, operations, and maintenance of pipelines carrying hazardous gas and liquids Conduct risk based inspections of these regulations. Response and investigation of pipeline accidents. Educate system operators, emergency responders and the general public Conduct research on promising technologies and knowledge needed to improve standards Provide grants to states in support of their pipeline safety programs inspection/enforcement, damage prevention, public education

11 Not In it Alone We partner with our States to enforce the Federal regulations. 10 of the 12 States in the PHMSA Western Region have pipeline safety programs AZ, CA, CO, ID, MT, NV, OR, UT, WA, and WY inspect INTRAstate natural gas pipelines AZ, CA, and WA inspect INTRAstate petroleum pipelines AZ and WA help us do INTERstate pipelines States can add additional regulations for INTRAstate pipelines

12 PHMSA Supports these State Pipeline Programs PHMSA provides up to 80% funding of any State s pipeline safety program Based on an annual Federal Audit of the program (Procedures, Field, and Records) The last year the average grant funding was approximately 74% of total program costs There is approximately $53 Million in Grant Money for 2015

13 Strategic Goals: Pipeline Safety Reduce risk of serious pipeline incidents through use of strong risk-based integrity management approach Sharpen focus on key risks using data Develop solutions to detect/characterize these risks Promote systematic management of risk through standards Inspect and enforce integrity management standards Build capacity of communities to carry out their respective roles in living safely with the energy pipelines

14 Index (1988 = 1) Pipeline Safety with Context Measures ( ) Nat. Gas Consumption Petroleum Product Consumption Pipeline Mileage U.S. population Spills with environmental consequences Incidents w/death or major injury Calendar Year Prepared by PHMSA with data from Energy Information Administration, Census Bureau, PHMSA Annual Report Data, PHMSA Incident Data - as of March 11, 2014

15 Recent Accidents High Profile 1/17/15 Bridger Pipeline s Poplar Pipeline spills crude oil into the Yellowstone River near Glendive, MT 5/19/15 - Plains Pipeline L.P. Line 901 Crude Oil Release Santa Barbara, CA

16 Poplar Pipeline Overview

17 The Release The Poplar Pipeline ruptured on Saturday January 17, 2015, spilling approximately 30,000 gallons of crude oil into the Yellowstone River. Findings show that the was exposed in the river following an ice dam event in 2014, exposure went undetected, and line failed due to water induced forces & vibrations.

18 Yellowstone River Response Workers recovered a total of 1,722 gallons/41 BBLs of oil from the iced over river.

19 Yellowstone River Near Glendive, MT

20 Recovered Pipe April 8, 2015

21 Plains Pipeline L.P. May 19, 2015 Crude Oil Release Santa Barbara, CA Estimated spill size 1500 barrels. Intense media coverage, and numerous oversight agencies at the Unified Command Preliminary findings show extensive corrosion under insulation, inaccurate ILI assessment, and no leak detection by control room Line is shut down & filled with Nitrogen

22 To Bakersfield Hwy 101 Sisquoc Pump Station Line 903 (127 Miles) Plains Pipeline, L.P. Line 901 (Las Flores to Gaviota) ** Not to Scale 2 nd and 3 rd Anomaly digs w/n 50 of each other Temporary dual clamp and recoat Affected Segment (~10.7 Miles) Failure Location Created by: Dave Mulligan Venoco Tie-In MOV2 Gaviota Creek Gaviota Pump Station 1 st Anomaly dig (temporary clamp) MOV 1 Refugio Creek and Check Valve Las Flores Pump Station MOV th Anomaly dig (~ MP.04 in station) (Composite sleeve) Flow Direction Spill Path MOV 109 (~ MP 10.7 in station) Hwy 101 Gaviota State Park Pacific Ocean Refugio State Beach Shoreline El Capitan State Beach Santa Barbara Offshore Platforms: Hildago, Harvest, Hermosa (Freeport McMoRan) Offshore Platform Holly (Venoco) Offshore Platforms: Hondo, Harmony, Heritage (ExxonMobil)

23 Release Site (~25 feet from Culvert)

24 Culvert Under Highway and RR Tracks to Ocean

25 Take Away from Latest Spills Most States have a pipeline safety agency that can answer pipeline safety questions We share our findings with them so your leadership can get answers. Plenty of areas to collaborate. My staff can provide information about a spill investigation, recent pipeline inspection, or enforcement on lines not regulated by State

26 Thank You! Questions? Christopher J. Hoidal Western Region Director U.S. DOT/PHMSA/Office of Pipeline Safety West Dakota Avenue, Suite 110 Lakewood, CO