Pipeline Safety Management System API 1173

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1 Pipeline Safety Management System API

2 National Transportation Safety Board (NTSB): Both the San Bruno, California and the Marshall, Michigan pipeline accidents involved errors at the management and operation levels. September, 2010 July, 2010

3 NTSB found that implementation of a Pipeline Safety Management System ( PSMS ) would enhance safety performance of pipelines. NTSB moved implementation of PSMS to its Most Wanted list.

4 NTSB Recommended: American Petroleum Institute (API) develop comprehensive SMS standards specific to the pipeline industry. 4

5 SMS Development Committee Members Ron McClain, Kinder Morgan, Chair Mark Hereth, P-PIC, Content Editor Scott Collier, Buckeye Partners Tom Jensen, Explorer Pipeline Paul Eberth, Enbridge Pipelines Mark Weesner, Exxon Mobil Brianne Metzger-Doran, Spectra Energy Tracey Scott, Alliance Pipeline William Moody, Southwest Gas Nick Stavropoulos, Pacific Gas and Electric Steve Prue, Small Gas Distribution Bill Hoyle, Public Subject Matter Expert Stacey Gerard, Public Subject Matter Expert Jeff Wiese, PHMSA Linda Daugherty, PHMSA Edmund Baniak, API Robert Miller, AZ Corporation Commission Massoud Tahamtani, VA State Corporation Commission Bob Beaton, NTSB (Ex Officio) John Erickson, APGA Kate Miller, AGA Scott Currier, INGAA Peter Lidiak, API John Stoody, AOPL 5

6 API RP 1173 The new ANSI/API RP 1173 is reality. First Edition, July 2015 Resulted from over two years of committee work and stakeholder engagement. PHMSA hosted three workshops. There were 13 revisions within the committee work and 1400 comments were resolved through two balloting efforts. There was unanimous approval at the second ballot NTSB reviewing the RP to see if it satisfies their recommendations to API RP 1173 has the potential to impact pipeline safety more than other standards because it sets overarching management processes. 6

7 Essential Safety Management Systems Elements Leadership and Management Commitment Stakeholder Engagement Risk Management Operational Controls Incident Investigation, Evaluation, and Lessons Learned Safety Assurance Management Review and Continuous Improvement Emergency Preparedness and Response Competence, Awareness, and Training Documentation and Record Keeping 7

8 PSMS - Expectations NTSB - established clear expectation of adoption PHMSA no plans to incorporate in regulation; expects adoption by the industry Congress and Public Stakeholders looking for follow through in absence of regulation Virginia 8

9 PSMS Gap Analysis Leadership and Management Commitment to Safety Is there a clear pipeline safety policy in place? Is the safety policy communicated to all within the organization? Is there an executive accountable for safety? Has the accountable executive identified and documented the safety responsibilities of management and operational personnel? Is a positive safety culture being promoted? Is compliance and risk reduction intentional and routine? Etc. 9

10 PSMS Gap Analysis Safety Risk Management Is there an easy process for voluntarily reporting safety issues by all employees/contractors? Is there a process for investigating all reported safety issues with feedback to employees/contractors? Is there a process to ensure such issues are not signs of systematic problems? Is there a valid process for properly prioritizing risks for mitigation? Are quality data being collected and data gaps addressed? Etc. 10

11 Successful implementation of a Safety Management System depends on actions of individuals and groups within the organization.

12 A Positive Safety Culture is Needed to Ensure PSMS Works in Practice

13 VW Emissions Cheating Scandal A culture of corporate greed Everyone involved knew this was unethical CEO to software engineer A culture of silence If it means keeping your job and prospering To fix these types of cultural problems Requires an overhaul of the regulatory structure, business ethics, corporate culture and engineering education and ethics. 13

14 What is next? The committee s intent was to provide a framework, scalable for: Large and Small Operators Operators with highly evolved management systems or those starting from scratch Industry Trade Associations committed to help pipeline operators with implementation. Operators report on their efforts to promote implementation 14

15 INGAA Commitment Foster a Culture of Continuous Improvement: INGAA members commit to raise the standard for use of management systems across the gas transmission industry to ensure better control of pipeline integrity and system reliability and provide guidance in practices and indicators to be used. 15

16 INGAA Meeting The Commitment Member Safety Culture Assessments 2013 Again in 2016 April 9 - INGAA Board Commitment Safety Culture and PSMS April 22 - PHMSA PSMS Workshop INGAA Foundation Sept 3 - Lessons Learned Workshop Sept 15 Executives Role in Safety Culture Sept 15&16 - PSMS - Hands-On Workshop October 28&29 PSMS Workshop - Collaboration with SGA Ongoing - Developing Metrics and Promoting Use of Maturity Models to show progress 16

17 PSMS Implementation energy LONG-TERM GOALS 1. Create awareness Years Improve understanding 3. Assist institutionalizing 4. Support measurement 5. Enable evaluation Years

18 PSMS Implementation energy COMMITMENT & LOGO First step: commitment letter Meaning behind the logo o Plan-Do-Check-Adjust o Journey, not a destination o Upward progress/continuously improving o Specific to pipeline industry Maturing Progress As pipeline companies progress, the logo used indicates levels of PSMS implementation progress by color 18

19 PSMS Implementation energy BOOKLETS THREE BOOKLETS 1. Introduction 2. Elements 3. Implementation 19

20 PSMS Implementation energy WORKSHOP STRATEGY 2015 Q4 Houston, TX Audience PSMS implementers Hands-on workshop: o Sharing best practices o Networking o Learning from others 20

21 APGA Will adapt RP 1173 for the unique issues of public gas systems - Leadership - Fostering a safety culture

22 AGA Activities Related to API 1173 Discussion Group 9 AGA member companies volunteer to pilot implementation 2016 workshop Roadmap guidelines document 22

23 AGA Discussion Groups Query members on what their experiences and challenges have been in this area Identify leading practices implemented by other utilities Exchange operating procedures, performance indicators, or work documents Determine which companies are ideal for additional follow-up discussions The Pipeline Safety Management Systems Discussion Group will continue through

24 AGA member companies will pilot the implementation of API 1173 at their own companies. 9 AGA Member Companies Volunteered to Pilot Implementation Over the course of a year, the companies will Washington Gas Light share information AGL Resources with each other Piedmont At the end of the CenterPoint year, these companies will Eversource report their National Grid results to other PG&E AGA member Southwest Gas companies 24 Vectren

25 AGA Workshop on Pipeline Safety Management Systems Speakers/presenters will include Pilot implementation volunteer(s) Regulatory representatives API 1173 development team representatives In the first quarter of 2016, AGA will host a workshop on Pipeline Safety Management Systems 25

26 A CULTURE OF SAFETY AGA and its member companies are committed to promoting positive safety cultures among their employees throughout the natural gas distribution industry. All employees, as well as contractors and suppliers providing services to AGA members, are expected to place the highest priority on employee, customer, public and pipeline safety. - Excerpt from AGA Safety Culture Statement 26

27 Thank you 27

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