API-NASEO Webinar Oil and Natural Gas Industry Preparedness Handbook Overview

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1 API-NASEO Webinar Oil and Natural Gas Industry Preparedness Handbook Overview October 16,

2 Why we developed the Handbook: Hurricane Sandy highlighted many issues with the ways in which stakeholders communicate during an event. During Sandy response, the issue drove the process we believe the process should drive the response to the issue The focus on retail gasoline availability during the response highlighted the lack of understanding of the ONG sector by many of our stakeholders. The lack of effective communication during and after the event revealed a breakdown in how information is shared and analyzed by government partners. 2

3 How we developed the Handbook: API, at the behest our members, partnered with the Oil and Natural Gas Sector Coordinating Council to layout a process which industry could follow when communicating with governments and other stakeholders before, during and after an emergency. API engaged partners in the private sector, the White House, federal agencies including DOE, DOT, EPA, FEMA, DHS, DOI, USCG and others to document, clarify and agree on a simplified version of the National Response Framework hierarchy that industry could follow to both input and receive information. Additional sections of the Handbook were developed for State and local organizations to identify the basic activities and outreach that is necessary prior to a disruptive event. 3

4 What s in the Handbook: An Oil and Natural Gas Preparedness and Response Strategy Oil and Natural Gas Supply Chains National Response Coordination Process Flow Diagram Guidance for Preparing at the State and Local Levels Identification of Potential Waivers that may be needed in an event 4

5 The Oil and Natural Gas Preparedness and Response Strategy Information is the most valuable resources during an emergency, but that information must be available and understandable. The strategy attempts to aid in the identification of roles, responsibilities and needs prior to any event that may affect the integrity of oil and natural gas systems The strategy approaches preparedness and response from the local level, acknowledging that events impact workers, businesses and communities first and foremost The strategy consists of a 2-phased approach: Educating stakeholder groups prior to events Formalizing processes of communication and information sharing 5

6 The Oil Supply Chain 6

7 Understanding the Supply Chains API has developed simplified models of both the oil and natural gas systems to quickly and easily educate stakeholders about the system components. The supply chain models are easily used to point out at what point in the chain impacts may happen and what other components may be affected. Both supply chains can be found at 7

8 National Response Coordination The challenge is effectively communicating and operating within the NRF, ICS, and PPD-8 structures when an event occurs. Working with public and private partners, API developed a graphic which represents how industry understands the flow of information is supposed to work under the current framework. 8

9 Preparing at the State and Local Levels The guidance for State and local activities focus on 4 key areas: Know who does what: Contacts should be established and responsibilities understood in preparation for, rather than in response to an event. Know what not to do: Recognize the laws, regulations and restrictions that address information sharing, collection, and discussions (Anti-trust). Know what matters: Know the assets and resources, and their importance to the reliable operations of the system, in the local area. Practice: The best way to ensure the correct relationships have been established, the correct information has been collected, and the correct mechanisms are in place is to test the process through drills and exercises. 9

10 Potential Waivers Waivers are granted when governments temporarily suspend regulations so that companies can continue operations that will help alleviate the emergency and restore normal operating conditions. Waivers are granted by both the State and federal governments to address regulations including (among others): Reformulated gasoline restrictions (State & federal) Vapor recovery regulations (State & federal) (Driver) Hours of Service (State & federal) Jones Act (federal only) Weight limits (State only) 10

11 Conclusions The Handbook is a means to provide common sense guidance, educational tools, and resources to support preparedness and response. The Handbook does not commit ONG owners and operators to specific actions but does capture the commitment to safety and rapid recovery exercised throughout the industry. The Handbook is meant to be used by anyone who finds it helpful explaining the ONG sector and understanding the basics of preparing for effective communication during a disruptive event. 11

12 Web Resources Oil and Natural Gas Preparedness Handbook API Oil and Natural Gas Supply Chains Petroleum Shortage Supply Management: Options for States e_supply_management.pdf Guidance for States on Relief from Federal Motor Carrier Safety Regulations in an Energy Emergency es_on_relief_from_federal_motor_carrier_safety_regulations.pdf 12

13 App Resource API has designed an app for IPads which contains much of the information from the Handbook in an interactive format. The app can be find in ITunes by searching for W2W. 13