Applicability of OQ for new construction activities Addressing abnormal operating conditions during evaluations and at job site Span of Control
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2 Applicability of OQ for new construction activities Addressing abnormal operating conditions during evaluations and at job site Span of Control limitations Tracking OQ during O&M activities & projects Addressing the gap between qualification and Operator-specific procedures Properly monitoring/maintaining programs Recent regulatory OQ findings and expectations
3 Operator Qualification (OQ) Rule The OQ Rule is intended to provide an additional level of safety and requires pipeline Operators to develop a qualification program to evaluate an individual s ability to perform covered tasks and to recognize and react to abnormal operating conditions that may occur while performing covered tasks.
4 Operator Qualification (OQ) Rule OQ is not intended to be a one-time event, but a process that continues for the working lifetime of an individual. After initial evaluation and qualification have been completed, re-evaluation and requalification is required. The Operator must recognize this and designate for each covered task an appropriate time interval for requalification.
5 Why do we need qualified individuals
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20 OQ for New Construction Activities Is OQ required for new construction? Tie-ins 80% AMAOP Special permits PHMSA covered task list New group of contractors/personnel Regulatory agencies expectations
21 Abnormal Operating Conditions (AOC s) Abnormal operating condition means a condition identified by the operator that may indicate a malfunction of a component or deviation from normal operations that may: (a) Indicate a condition exceeding design limits; or (b) Result in a hazard(s) to persons, property, or the environment.
22 Abnormal Operating Conditions (AOC s) Qualified individuals must be able to recognize and react appropriately to AOC s. Recognize: means that the employees are able to identify a situation or event on the pipeline that is out of the ordinary and could become a hazard to the public or environment, if not promptly corrected. React appropriately: means the employee knows what to do to ensure that the hazard is promptly addressed. This could include notifying the employee s supervisor or site inspector or taking the correct action to mitigate the hazard, whichever is appropriate for the AOC.
23 How do you address AOC s? Task-specific versus generic PHMSA OQ FAQ - Operators are expected to develop a thorough listing of AOCs, both task-specific and generic. The task-specific AOCs may be included within the evaluation criteria for the specific task, but the generic AOCs should be maintained in a separate list and reviewed periodically. PHMSA Integrated Inspection Guidance - In addition to taskspecific AOCs (i.e., those that may be caused by performance of the task), generic AOCs (i.e., those that may reasonably be encountered during performance of the task) have been identified and used in qualification in cases where special requirements and conditions for the task being performed must be considered. During evaluation At the job site
24 Span of Control (SOC) No one can perform a covered task unless they are specifically qualified to perform that task or are directed, observed and supervised by a qualified individual (if span of control is allowed) as outlined in the OQ plan Sample Covered Task List
25 Span of Control (SOC) A SOC ratio of 1:3 would mean that one qualified employee could direct, supervise and observe up to three unqualified employees.
26 Span of Control Expectations Assure that a qualified person is always present during activities where a covered task is being performed Assure that all individuals, qualified and non-qualified, understand the requirements Consider any conditions that may impact the SOC ratio, such as: Language Barriers Noise Level Weather Regulatory agencies expectations Sniper Observations
27 Tracking OQ during Projects Identify applicable covered tasks for the activities that will be performed Communicate requirements to all affected personnel Assure personnel are qualified to perform the applicable covered tasks Obtain/maintain qualification records
28 Tracking OQ during Projects Track personnel who actually performed task(s) Need to identify individual for each covered task Inspectors role? How often do you verify qualifications and identities? Who worked under SOC? Record Discussions AOC s (Site-Specific) SOC limits & adjustments Procedures/policies Should be considered part of QMS Regulatory agencies expectations
29 The Gap Task criteria versus Operator procedures Use of off-the-shelf covered tasks How is it addressed? Need to demonstrate that the person in the ditch is aware of procedures Best Practices Tailgate meetings JSA s Training Regulatory agencies expectations
30 Program Monitoring/Maintenance Need to periodically review program ADB 12-09: each calendar year, not to exceed 15 months Need to review rules and references for additional covered tasks Recent changes incorporated further references Need to develop method for employee feedback Changes in procedures Additional potential AOC s Need to periodically review personnel performance OQ needs to be considered during accident/incident investigations
31 Consequences of Non-Compliance
32 PHMSA Enforcement Actions The Pipeline Enforcement Program has a number of different mechanisms to assure operator compliance and safe operation. Including: Letters of Concern Warning Letters Notice of Amendment Notice of Probable Violations Corrective Action Orders Notice of Proposed Safety Order The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 increased the civil penalty authority of PHMSA to a maximum of $200,000 per violation per day, up to a maximum of $2,000,000 for a related series of violations.
33 PHMSA Enforcements Issued 2002 April 2012 Corrective Action Orders 92 Notice of Probably Violation 640 Notices of Amendment 844 Warning Letters 945 Notices of Proposed Safety Orders 11 Civil Penalties 462 Proposed Penalties $41,000,000 Assessed Penalties $26,000,000 (Does not include 2012 Penalties)
34 Criminal Penalties Criminal penalties may be taken: If any person willfully and knowingly violates a pipeline safety requirement is subject to a fine of not more than $25,000 for each offense, imprisonment for not more than five years, or both. If any person willfully violates a regulation for off-shore gathering lines is subject to a fine of not more than $25,000 for each offense, imprisonment for not more than five years, or both. If any person willfully and knowingly injures or destroy any interstate pipeline facility, is subject to a fine of not more than $25,000 for each offense, imprisonment for not more than 15 years, or both. If any person willfully and knowingly defaces, damages, removes, or destroys any pipeline sign, right-of-way marker, or marine buoy, that individual is subject to a fine of not more than $5000 for each offense, imprisonment not to exceed one year, or both.
35 OQ Protocol Summary Statistics Significant Protocol Areas Potential Issues /Overall Inspections % PI 4.02 Abnormal Operating Conditions (AOCs) 2116 / Documentation for Individual on CTs 2018 / Notification of Program Changes 1130 / Evaluation Methods for KSA s 1895 / Qualification Trail 1880 /
36 Examples of Recent OQ Civil Penalties 2009 Operator failed to identify a covered task (hot tap) nor had anyone properly qualified: $100,000 fine assessed 2009 Operator failed to identify a covered task (threaded fitting assembly: $133,100 fine assessed (being contested) 2010 Operator did not enforce SOC properly: $100,000 fine assessed (being contested) 2010 Operator allowed unqualified personnel to perform covered tasks; $271,300 fine assessed (being contested) 2010 Operator failed to identify a covered task (mud plugs) nor had anyone properly qualified: $788,000 fine assessed 2010 Operator failed to identify covered tasks nor had properly qualify personnel: $98,600 fine assessed
37 What the Future may bring On the horizon: New construction and inspection tasks may be included Activities based on incorporated references Routine monthly break-out tank inspections Expansion of pipeline facilities All gathering lines Well heads Underground storage facilities Verification of contractor knowledge of Operator procedures Documentation of qualified individual that actually performed the task (who wrapped that pipe, etc.) More in-depth inspections
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