Pennsylvania Energy Association Pipeline Safety. Paul Metro Manager Pipeline Safety PAPUC

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1 Pennsylvania Energy Association 2017 Pipeline Safety Paul Metro Manager Pipeline Safety PAPUC 1

2 Intrastate Pipeline Facilities Intrastate Gas: Transmission mileage: 1,127 miles Distribution mileage: 47,499 miles Number of services: 2,832,461 2

3 Other Intrastate Pipeline Facilities LNG Operators 4 Gathering Jurisdictional Miles 800 miles Estimated non-jurisdictional 60, ,000 miles Jurisdictional LP operators 7 Master Meter Operators 437 3

4 PIPELINE MATERIALS 5,890 Bare Steel 13,146 Coated Steel 37 Other 26,17 Cast Iron 20,547 Plastic Pipeline Materials Plastic Cast Iron/Wrought Coated Steel Bare Steel Other

5 Damage Prevention Statistics 2016 Total # of locate request: 601,847 Number of Pipeline Damages: 2,026 Damages per thousand tickets: Average 3.3 Number of violations issued: 28 Amount of civil penalties collected: $1.9 million Top causes for damages? 69% Excavator Error 31% Operator Error 5

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7 2016 Utility Fault vs Project Owner Fault 7

8 2016 Facility Damage Locations

9 Facilities Damaged By:

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12 Cost of Damaged Facilities

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14 Significant Incidents Description Cause as determined by state if known Preventable? Yes/No F I Cost PECO Line Hit Pipeline struck by track hoe, more than 3 million CF lost 0 0 $16,669 Columbia Gas Explosion Littlestown Leaking Riser on Customer owned Service Line UGI- Line Hit Gas line struck by PennDot, more than 3 million CF lost 0 0 $203, $69,000 NFGD Line Hit Line caused 453 customer outage 0 0 $85,496 Columbia Line Hit PGW Electric Line arc Line struck by landscape contractor and million CF lost Underground electric line arced and melted the gas line 0 0 $62, $38,414 14

15 Significant Incidents Description Cause as determined by state if known Preventable? Yes/No F I Cost Peoples Compressor Station Fire 0 0 $400,000 15

16 Columbia Littlestown Riser Leaking 16

17 Columbia Line Hit Take Station 17

18 PGW Melted Cast Iron 18

19 UGI Line Hit 19

20 Peoples Compressor Station 20

21 2016 Program Accomplishments Hired 2 additional engineers Implementing New rule making on moving meters/regulators outside Performed in-depth study of PGW and reduced risky pipeline replacement from 88 years to 44 years Implemented annual DIMP Inspections 21

22 2016 Accomplishments Reclassified engineering staff titles potential increase in pay step levels Actively participating in Base Rate Proceedings providing testimony on pipeline replacement schedules and efficiencies.. Pipeline Infrastructure Task Force Training Company EWN providing OQ training for all inspectors 22

23 2016 Outlook / Area s of Emphasis Annual DIMP audits Adding inspection summaries to state web site 1Call enforcement Legislation Paul, Ralph, Chris, Bob, Terri, are on NAPSR/PHMSA/NARUC/AGA committees 23

24 2017 Highlights & Notes: In 2017 identifying Master Meters and making contact Signed a certification with PHMSA for Hazardous Liquid inspections of intrastate transmission PHMSA Staffing Formula Met with PHMSA Administrator, Zack Barrett, Alan Mayberry, regarding PHMSA training center in PA 24

25 Intrastate Pipeline Facilities Intrastate Hazardous Liquids: PAPUC- Hazardous Liquid Transmission Pipeline is a Public Utility Several other Haz Liq Pipelines 25

26 OQ Problem NY and Virginia discovered, through a whistle blower, that Contractors, Operators, and training entity were cheating on OQ exams and testing Issued letter in PA for operators to review procedures Sent data requests Working with Eastern Region to develop Best Practices PHMSA needs to participate 26

27 OQ Baseline Requirements Contractors OQ ed to Pipeline Operator s Procedures (not just training entity s procedures) This will create portability issues Need Robust Training Enhanced OQ Independent Testing - Proctored Testing Annual OQ Evaluations 27

28 OQ Baseline Requirements Classroom Training, Hands-On Training, and Testing Alternative method for employees that have test taking problems College Credits Large Pool of Testing Questions For example: 135 questions in the pool for a 35 question test 28

29 OQ Baseline Requirements More operator inspectors in the field More random inspection of work for both operator employees and contractor employees Knowledge Retention May require more frequent training and testing Reportable Incidents will have a robust review of Operator s OQ program 29

30 INSIDE METERS Inside meter regulations included a 10 Year program to move meters from inside to outside Program is a little more than 3 Years old Some areas with Municipal Issues Historic Areas Communicate Proactively Meter Appearance is important it s a visual symbol of your Company s image 30

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34 NAPSR Updates 2017

35 Mission: Strengthen pipeline safety programs by improving pipeline safety standards, and promoting education, training and the integration of new technology State programs work closely with PHMSA and conduct their own inspections and enforcement in states with certifications 50 state programs (AK and HI no program, but additional HL programs in two states; Puerto Rico and Washington DC included)

36 NAPSR Focus for 2017 Review all PHMSA NPRMs and Final Rules and provide input from a state regulator perspective Maintain good working relationship with PHMSA partners Continue to work with industry organizations to discuss issues and consider all viewpoints Continue inspection and enforcement efforts Work with PHMSA and industry for implementation or completion of PIPES Act mandates Support pipeline safety education efforts in the states

37 Enforcement Trends Reports from the states indicated that not much has changed from 2016 in inspection priorities or violations Risk based inspections Equivalent (alternative) enforcement will continue vs. civil penalties in some cases PHMSA has hired majority of 109 positions, although hiring freeze in effect. The states sometimes have difficulty finding and hiring qualified personnel.

38 Rulemaking and other areas of focus NAPSR HOT TOPICS

39 Damage Prevention Enforcement Final Rule effective January 1, 2016 PHMSA completed the reviews of the state DP Programs. Many programs were deemed inadequate PHMSA will follow enforcement guidelines for states with inadequate DP rules or programs per Part 198 PHMSA can enforce on violating excavators in states without an adequate DP program under Part 196; it remains to be seen to what extent this will occur

40 AGA Pipeline Safety Management System Workshop (PSMS) NAPSR is supportive of SMS Several NAPSR State Program Managers participated and provided NAPSR input to the API SMS committee Scalable issue for small operators needs to be addressed NAPSR feels that SMS can work on any scale with sensible structuring of the individual programs

41 Hazardous Liquids Published January 13, NAPSR member states also have hazardous liquid programs and enforcement under certification with PHMSA NAPSR generally in favor of revisions and additions to Part 195 Addition of gathering lines and HL lines not in HCA s will increase pipeline safety

42 Underground Storage Interim Final Rule published in FR on December 19, 2016 Interim Final Rule incorporates API RP 1170 and 1171 as guidance User Fees have been set up by PHMSA PHMSA State Programs is in process of evaluating how to implement the inspection program. Will all states PS programs be certified to inspect? PHMSA is working on developing a new certification program for UG storage Some states already inspect via another department (i.e. Department of Natural Resources etc.) Need to determine if integration makes sense

43 Task Groups & Committees, Compendium, Strategic Plan, web site NAPSR ORGANIZATIONAL EFFORTS

44 Compendium NAPSR Compendium is updated and issued periodically The Compendium highlights regulations that exceed the Federal minimum standards States with additional state regulations that increase pipeline safety are listed and the regulations summarized Next issue is due at the end of 2017 Current 2013 version is on web site at:

45 NAPSR Resolutions NAPSR submits Resolutions to PHMSA if an issue arises that concerns the membership Resolutions are suggested changes to rules, processes, etc. usually between NAPSR states and PHMSA Resolutions can also be new ideas to increase pipeline safety PHMSA reviews and responds the Resolutions Resolutions are posted on the NAPSR public site at: Resolutions.aspx