Rebuilding the World s Pipeline Infrastructure



Similar documents
Guidance 1 for Strengthening Pipeline Safety Through Rigorous Program Evaluation and Meaningful Metrics

April 15, 2011 VIA ELECTRONIC TRANSMISSION

COMPARISON OF INTEGRITY

A Geospatial Solution for Minimizing Risk. Pipeline Hazard Categorization

49 CFR 192 Transportation of Natural and Other Gas By Pipeline: Minimum Federal Safety Standards

California Public Utilities Commission Risk Assessment Unit Hazard Database Project Report on Status and Initial Recommendations

SUMMARY OF DISTRIBUTION INTEGRITY MANAGEMENT PROGRAM

Managing the integrity of pipeline assets

A Guide to PHMSA s Proposed Rule Expanding Natural Gas Pipeline Safety Requirements

PIPELINE FUNDAMENTALS. texaspipelines.com

Jeffrey D. Wiese Associate Administrator for Pipeline Safety

GIS Based Risk Analysis Simplifying the Risk Assessment Process

Risk Based Asset Management

The Cost of a Pipeline Failure. Presented by Penn West

Recently Completed Projects - Consulting Service Projects

THE STATE OF THE NATIONAL PIPELINE INFRASTRUCTURE

SDG&E DIRECT TESTIMONY OF MARIA T. MARTINEZ (PIPELINE INTEGRITY FOR TRANSMISSION AND DISTRIBUTION) November 2014

PIPELINE INTEGRITY SOFTWARE By Valery V. Kotov, Weatherford P&SS, Lukhovitsy, Russia

Portable Natural Gas Supply Solutions

SOCALGAS APROACH TO PIPELINE INTEGRITY

SMALL DIAMETER, MULTIPLE DATASET INSPECTION IN LOW FLOW AND LOW PRESSURE ENVIRONMENTS

Observations on the Application of Smart Pigging on Transmission Pipelines

FEDERAL GOVERNMENT OVERSIGHT OF PIPELINE SAFETY

Pipeline Safety Excellence API - AOPL ANNUAL LIQUIDS PIPELINE SAFETY PERFORMANCE REPORT & STRATEGIC PLAN OPL. energy. Association of Oil Pipe Lines

MAR Sincerely,

Frequently Asked Transmission Pipeline Questions

APPENDIX J GAS DISTRIBUTION

In-line inspection (intelligent pigging) of offshore pipeline. Birger Etterdal

The Engineering Science of Oil Pipelines

High Density Polyethylene Liners for Rehabilitation of Corroded Pipelines

NCCER Progress Blvd., Alachua, FL Tel: (888) Task Number Item Date(s) Recorded By

Pipeline Safety Excellence ANNUAL LIQUID PIPELINE SAFETY PERFORMANCE REPORT & STRATEGIC PLAN 2013

Measuring the Condition of Prestressed Concrete Cylinder Pipe

A Solution to MOP/MAOP Data Management in PODS

Oil and Gas Pipeline Design, Maintenance and Repair

SMALL GAS OPERATOR OPERATION AND MAINTENANCE PLAN

Enbridge Class Location Change Management Plan. 1.1 Additional Information for Identified Changed Class Locations

APGA SECURITY & INTEGRITY FOUNDATION OPERATIONS CONFERENCE

PIPELINE INSPECTION USING INTELLIGENT PIGS AN SGA/BATTELLE WORKSHOP COLUMBUS, OHIO MAY 11-14, 2010 AGENDA

Session: HDPE Pipe Test Rafael Ortega, Vice President, Lockwood, Andrews & Newnam

Program Design and Engineering Key to Infrastructure Replacement and Cost Containment

Operations and Maintenance Procedures for Natural Gas Systems

OREGON FIRE CODE Interpretations and Technical Advisories

A RISK MANAGEMENT TOOL FOR ESTABLISHING BUDGET PRIORITIES. John F. Kiefner, Ph.D President Kiefner and Associates, Inc. Worthington, Ohio 43085

NATIONAL ENERGY BOARD PIPELINE PERFORMANCE MEASURES 2013 DATA REPORT

Overcoming missing or incomplete pipeline data in ageing assets: ILI and NDE techniques combine to provide traceable, verifiable, and complete records

PIPELINE INSPECTION UTILIZING ULTRASOUND TECHNOLOGY: ON THE ISSUE OF RESOLUTION By, M. Beller, NDT Systems & Services AG, Stutensee, Germany

Pressure Testing (Hydrostatic / Pneumatic) Safety Guidelines

S Y S T E M M O D E R N I Z A T I O N

PODS!"#$% &"'&( )*+,-+(*+ PODS, + *+./0 -(12$3 4&-050% -56 *(1"&7(&8&-&8 (APDM, PPDM) 9:+.&8 ;4$*($% dushakov@dataplus.ru

NW Natural & Pipeline Safety

Bellingham Control System Cyber Security Case Study

Owner-User Pressure Equipment Integrity Management Requirements

Towards Better Pipeline Data Governance. J. Tracy Thorleifson Eagle Information Mapping, Inc.

ASSET MANAGEMENT PLAN Published January 2009

Pipeline Engineering. Natural Gas Distribution

The Suitability of CRA Lined Pipes for Flowlines Susceptible to Lateral Buckling SUT Global Pipeline Buckling Symposium, February 2011

ENERGY TRANSFER PARTNERS, L.P. PHMSA CRM and SCADA. Joe Schmid & Anil Pinto. Tuesday, April 29th, 2014

Standard Practice. In-Line Inspection of Pipelines

INDIAN STANDARDS FOR NATURAL GAS PIPELINE SYSTEM

TESTIMONY OF SOUTHERN CALIFORNIA GAS COMPANY AND SAN DIEGO GAS & ELECTRIC COMPANY IN SUPPORT OF PROPOSED NATURAL GAS PIPELINE SAFETY ENHANCEMENT PLAN

CSA Group Safety Standards for Oil and Gas Pipeline Systems: A Life-Cycle Approach

OIL & GAS PRODUCTION AUDITING

SECTION CEMENT-MORTAR LINED AND COATED STEEL PIPE

The State of Natural Gas Pipelines in Fort Worth

Meeting the Challenge of Pipeline Emergency Repair

EVALUATION OF THE AQUA WRAP SYSTEM IN REPAIRING MECHANICALLY- DAMAGED PIPES

Force Main Condition Assessment: New Technologies & Case Studies

NOTICE OF AMENDMENT CERTIFIED MAIL - RETURN RECEIPT REQUESTED. November 28, 2012

Pipeline Basics & Specifics About Natural Gas Pipelines

PIPELINE EMERGENCIES. Chapter 2 Pipeline Regulations and Safety Programs. Michael Callan

Challenges Managing ILI Data in an Enterprise Environment using PODS 6.0 Relational. Bruce Dupuis John Spurlock Alejandro Reyes

Sarbanes-Oxley Compliance for Cloud Applications

Oil and Coolant Circulating Heating System. Model - OCSM

Specifications and requirements for intelligent pig inspection of pipelines

Gas Marketplace Work? July 9-13, 2007

Emerging Technologies in Wastewater Collection Systems

Vertiline. Wireline-conveyed MFL inspection service reduces pipeline maintenance and rehabilitation costs. Baker Atlas

OPERATIONS & MAINTENANCE (O&M) FOR PROPANE STORAGE FACILITIES

SECTION HIGH DENSITY POLYETHYLENE (HDPE) PIPE AND FITTINGS FOR WATER DISTRIBUTION AND TRANSMISSION

Green Thread Product Data

DECEMBER 21, Sincerely, Jeffrey D. Wiese Associate Administrator for Pipeline Safety

How To Preserve Trees

Recommended Practice for Software Acquisition

60 Series Pilot Regulator

Trenching and Excavation Safety

BEFORE THE PHILADELPHIA WATER, SEWER AND STORMWATER RATE BOARD DIRECT TESTIMONY OF STEPHEN J. FURTEK

BODY OF KNOWLEDGE API-653 ABOVEGROUND STORAGE TANK INSPECTOR CERTIFICATION EXAMINATION November 2015, March 2016 and July 2016 (Replaces October 2013)

MANAGING LINEAR ASSETS Managing Linear Assets has always been a challenge; find out how customers leverage SAP to meet industry requirements.

ASMECourseCatalog.

Integrity Management Products and Services Rehabilitation and Maintenance Services and Project Services

Transcription:

Rebuilding the World s Pipeline Infrastructure William J. Hoff Group Director, Engineering Services Gulf Interstate Engineering Company Edward J. Wiegele President, Professional Services Willbros Engineers (U.S.) LLC

William J. Hoff

US Pipeline Infrastructure 3

International Pipelines Beyond North America Source: Pipeline & Gas Journal's Mid-Year International Pipeline Report 10,166 mi South & Central America and Caribbean 1,980 mi Western Europe & EU Countries 8,318 mi Middle East 8,523 mi Africa 17,039 mi Former Soviet Union-Eastern Europe 35,546 mi Asia Pacific Region 81,572 mi Total 4

Natural Gas Pipeline Safety Act: 1968 Regulations Effective Date: 1970 Source: Oil Pipeline Characteristics and Risk Factors: Illustrations from the Decade of Construction, 2001 5

Timeline of Key Events Timeline Event 1968 US Passes Natural Gas Pipeline Safety Act Pipeline Safety Provisions Become Law 1970 Gas Pipeline Safety Regulations Developed Effective Date for All Gas Operators 1979 US Passes Hazardous Liquid Pipeline Safety Act For All US Liquid Operators Dec 1, 2000 Liquids IMP Rule 49 CFR 195.452 Industry Reference API 1162 Dec 15, 2003 Gas IMP Rule 49 CFR 192 Subpart O Industry References: ASME B31.8S Why is this Important? Requirements / Standards are being adopted by other countries Opportunities exist to assist Operators in Integrity Management Long term need for these Services 6

Background to Understanding US Regulations Incidents Leading to Pipeline Integrity Regulations Olympic Pipeline Bellingham Washington - June 1999 Gasoline Pipeline Rupture Fatalities: 3 young boys El Paso Pipeline Carlsbad, New Mexico - August 2000 Natural Gas Pipeline Rupture Fatalities: 12 7

Olympic Pipeline Accident Bellingham, WA 8

Olympic Pipeline Accident Bellingham, WA Cherry Point Refinery Pipeline Rupture Water Treatment Plan Whatcom Creek Valve Fails to Open Performing Software Upgrade on SCADA Computers Switched Delivery Points Notice pressure rise considered normal (actually due valve closure) SCADA becomes unresponsive Electrician takes down pump station manually Pressure surge backs up the line, surge relief valve fails to open Pressure surge causes rupture at water treatment plant (unknown) Deleted software upgrade, rebooted SCADA, and restarted pipeline Pipeline is restarted Additional product is released at rupture site Renton Station 9

Olympic Pipeline Accident Bellingham, WA Cherry Point Refinery Pipeline Rupture Event SCADA Upgrade Tie to IMP Rule - Personal Knowledge & Training - Management of Change - Quality Assurance Water Treatment Plan Whatcom Creek Pressure Rise & Restart of P/L Damage at Water Treatment Plant - Personal Knowledge & Training - Threat ID 3 rd Party Damage - Preventive & Mitigative Measures Valve Fails to Open Smart Pig Run Pipeline Rupture - Assessment Methods - Conducting Assessments - Remediation - Personal Knowledge & Training - Minimize Enviro / Safety Risks - Personal Knowledge & Training Renton Station Relief Valve Failure 10 - Management of Change - Personal Knowledge & Training

El Paso Pipeline Carlsbad, NM Accident 11

El Paso Pipeline Carlsbad, NM Accident 12 Fatalities Cause: Internal Corrosion Addl Ties to IMP Rule Threat: Internal Corrosion Cyclic Fatigue: Suspension Bridge 12

Similar Requirements for Gas & Liquids Pipelines Hazardous Liquid Pipelines 49 CFR 195.452 Applicable to High Consequence Areas Industry Standard: API 1162 Required Elements Identify High Consequence Areas Identify Threats Perform Risk Analysis Prepare Assessment Plan Perform Remediation Perform Continual Evaluation Maintain Performance Metrics Implement Preventive & Mitigative Measures Utilize Management of Change Develop Quality Assurance Program Record Keeping Develop Communications Plan Natural Gas Pipelines 49 CFR 192 Subpart O Applicable to High Consequence Areas Industry Standard: ASME B31.8S Required Elements Identify High Consequence Areas Identify Threats Perform Risk Analysis Prepare Assessment Plan Perform Remediation Perform Continual Evaluation Maintain Performance Metrics Implement Preventive & Mitigative Measures Utilize Management of Change Develop Quality Assurance Program Record Keeping Develop Communications Plan 13

Key Differences Between Gas & Liquids Pipelines Hazardous Liquid Pipelines Maximum 5 Year Assessment Cycle Product Characteristics Liquid run off based on terrain Potential migration in rivers and streams Potential groundwater contamination High Consequence Area Definition Commercially Navigable Waterway High Population Area Other Populated Areas Usually Sensitive Areas Remediation Conditions Immediate 60 Days 180 Days Other Considerations Runoff Modeling, Potential to Impact Natural Gas Pipelines Maximum 7 Year Assessment Cycle Product Characteristics Local well defined Impact Area No run off, vertical dispersion No impact to groundwater High Consequence Area Definition Method 1: Class Location Method 2: Potential Impact Radius Both Methods Include: Identified Sites Remediation Conditions Immediate 1 Year Monitor Other Considerations BTU Content Affects Impact Radius 14

Discussion of Natural Gas Pipeline Integrity Rule Filtering Criteria Gas Transmission Pipelines Is the pipeline system subject to 49 CFR 192? Does it have Transmission Pipe per 192.3? Have High Consequence Areas been identified on the system? 15

Gas Integrity Management Program Required Program Elements a) Identification of HCAs b) Baseline Assessment Plan c) Threat Identification d) Direct Assessment Plan e) Remediation f) Continual Evaluation & Assessment g) Confirmatory Direct Assessment h) Preventive & Mitigative Measures i) Performance Plan j) Record Keeping k) Management of Change l) Quality Assurance m) Communications Plan n) Procedure to provide risk analysis & IMP to Regulators upon request o) Minimizing environmental / safety risks p) Identification of new HCAs 16

Identification of High Consequence Areas HCA Methods 1. Class Location 2. Potential Impact Circle (PIC) Both Include Identified Sites Typically Used Reduces Length 17

High Consequence Areas PIR Method PIR 0.69 pd 2 PIR = Radius of a Circular Area in Feet Surrounding the Point of Failure p = Maximum Allowable Operating Pressure (MAOP) in the pipeline segment in pounds per square inch d = Nominal Diameter of the Pipeline in Inches. 18

High Consequence Area More than 20 Buildings Potential Impact Circle with more than 20 Buildings 19

Identified Sites (a) An Outside Area or Open Structure that is occupied by twenty (20) or more persons on at least 50 days in any twelve (12)-month period. (The days need not be consecutive.) Beaches Playgrounds Recreational Facilities Camping Grounds Outdoor Theaters Stadiums Recreational Areas near water Areas Outside a Religious Facility b) (b) A Building that is occupied by twenty (20) or more persons on at least five (5) days a week for ten (10) weeks in any twelve (12)-month period. (The days and weeks need not be consecutive.) Religious Facilities Office Buildings Community Centers General Stores Roller Skating Rinks 4-H Facilities c) A Facility occupied by persons who are confined, are of impaired mobility, or would be difficult to evacuate Hospitals Prisons Schools Day-Care Facilities Retirement Facilities Assisted-Living Facilities 20

HCA Identified Site Identified Site PIR PIR PIR PIR 21

HCA Identified Site Potential Impact Radius PIR 0.69 pd p = 1200 psi d = 20-inch 2 PIR 0.69 2 (1200)20 PIR 478 feet PIR = Radius of a Circular Area in Feet Surrounding the Point of Failure p = Maximum Allowable Operating Pressure (MAOP) in the pipeline segment in pounds per square inch Identified Site d = Nominal Diameter of the Pipeline in Inches. 22

Steps to a Baseline Assessment Plan Activity Purpose Plan Threat Identification & Evaluation Addresses All Threats (9 Categories) Assessment Method Selection Selects Appropriate Assessment Method for Each Identified Threat Baseline Assessment Plan Risk Analysis & Prioritization Prioritized Risk Ranking of Assessments 23

Threat Identification. 1 2 3 (a) Prescriptive Approach 9 Categories Time Dependent (1) External Corrosion (2) Internal Corrosion (3) Stress Corrosion Cracking Performance Based Approach 1 2 3 (a) 21 Specific Threats Time Dependent (1) External Corrosion (2) Internal Corrosion (3) Stress Corrosion Cracking 4 5 6 (b) Static or Resident (1) Manufacturing Related Defects Defective Pipe Seam Defective Pipe (2) Welding / Fabrication Related Defective Pipe Girth Weld Defective Fabrication Weld Wrinkle Bend or Buckle Stripped Threads / Broken Pipe / Coupling Failure (3) Equipment Failures Gasket O-ring failure Control / Relief Equipment Malfunction Seal / Pump Packing Failure Miscellaneous 4 5 6 7 8 9 10 11 12 13 (b) Static or Resident (1) Manufacturing Related Defects Defective Pipe Seam Defective Pipe (2) Welding / Fabrication Related Defective Pipe Girth Weld Defective Fabrication Weld Wrinkle Bend or Buckle Stripped Threads / Broken Pipe / Coupling Failure (3) Equipment Failures Gasket O-ring failure Control / Relief Equipment Malfunction Seal / Pump Packing Failure Miscellaneous 7. 8 9 (c) Time Independent (1) Third Party / Mechanical Damage Damage by 1 st,2 nd,or 3 rd Parties Previously Damaged Pipe Vandalism (2) Incorrect Operations Human Error Incorrect Operations (3) Weather Related and Outside Force Cold Weather Lightning Heavy Rains or Floods Earth Movements 14 15 16 17 18 19 20 21 (c) Time Independent (1) Third Party / Mechanical Damage Damage by 1 st,2 nd,or 3 rd Parties Previously Damaged Pipe Vandalism (2) Incorrect Operations Human Error Incorrect Operations (3) Weather Related and Outside Force Cold Weather Lightning Heavy Rains or Floods Earth Movements 24

Assessment Method Selection Inline Inspection Metal Loss Tools Crack Detection Tools Caliper / Geometry Tools Pressure Test 49 CFR 192 Subpart J Pressure Test Spike Test Direct Assessment External Corrosion Direct Assessment Internal Corrosion Direct Assessment Stress Corrosion Cracking Direct Assessment Other Approved Technology 25

Risk Analysis & Prioritization Single Threat: Most Common Risk i = P i x C i Pipeline Segment: Consider All 9 Threat Categories Risk = (P1 x C 1) (P2 x C2).(P9 x C9) where: P = Probability of failure C = Consequence of failure = Threat Category 1 to 9 9 i 1 26

Baseline Assessment Plan Risk Analysis and Prioritization HCA Method Assessment Method Selection Assessment Method Selection Risk Rank Risk Score Pipeline Section Section Length HCA Method HCA ID HCA Miles Assessment 1 Assessment Date Assessment 2 Assessment Date 1 4956 River Road to Griffin Tap 8.7 PIR 105 3.5 ECDA Jan 2012 ICDA Jan 2012 2 3013 Brookside Station to Valve 25 9.8 PIR 65 2.4 ECDA Mar 2012 ICDA Mar 2012 3 2835 Valve 27 to Raven Station 8.3 PIR 78 1.2 Press Test Aug 2012 Spike Test Aug 2012 4 2530 Fairview Station to South River Valve 7.2 PIR 21 2.1 ILI - MFL Nov 2012 Caliper Nov 2012 5 2298 Preston Tap to Valve 20 6.9 PIR 107 0.9 ECDA 1 st Qtr 2013 ICDA 1 st Qtr 2013 6 1756 Larkin Street Trap to Valve 13 8.4 PIR 86 1.6 ILI - MFL 2 nd Qtr 2013 Caliper 2 nd Qtr 2013 7 1406 Valve 11 to Edgebrook tap 5.6 PIR 92 0.7 ILI - MFL 2 nd Qtr 2013 Caliper 2 nd 2013 27

Pipeline Integrity Management Trends Gas Transmission Integrity Management Assessment Miles per Year HCA Repairs per Year 28

Opportunities Remediation Pipeline Retrofitting for Inline Inspection Tools Direct Assessment Hydrostatic Testing Pipeline Replacement Automatic Shut Off / Remote Control Valves Preventative and Mitigative Measures 29

Pacific Gas and Electric Recent Pipeline Integrity Developments San Bruno, CA - September 2010 Natural Gas Pipeline Rupture Fatalities: 8 National Transportation Safety Board (NTSB) Probable Cause Inadequate Quality Assurance during a pipeline relocation Inadequate Pipeline Integrity Management Program Incomplete and inaccurate pipeline information Did not consider the design & materials in risk assessment Failed to consider welded seam cracks in risk assessment Assessment method was unable to detect welded seam defects Integrity Program reviews were superficial - No Improvements made 30

January 10, 2011 Establish MAOP using Record Evidence Perform detailed Threat and Risk Analysis Use accurate data especially to determine MAOP Use Risk Analysis: Assessment Selection Preventive & Mitigative Measures May 7, 2012 New PHMSA Advisory Bulletins Verification of Records New annual reporting requirements for Gas Operators (2013) Report progress toward verification of records Records must be Traceable, Verifiable, and Complete 31

PODS IPLOCA Work Group Formed to: Develop Industry Standards Data Standards for New Pipeline Construction Data structure specifically designed for Design & Construction Improved data management over entire life cycle Common format for data and metadata Material tracking and traceability As-built survey / progress tracking during construction Common database deliverable to Operator Ability to assure data is Traceable, Verifiable, and Complete 32

Opportunities Pipeline Data Gathering Records Validation MAOP Validation Geographic Information System Development Field Verification 33

Edward J. Wiegele

Chief Reasons for Accidents 35

What is Pipeline Integrity Management & Maintenance? Program design Program execution (assessments/reviews) Follow-on engineering & construction Engineering activities include: IMP design & O&M manual development Risk analysis System integrity validation and assessment ILI program design and implementation GIS Services, database design and analysis Data collection and as-builting Establishing operating plans to keep pipelines in good working order Leveraging technology to monitor and assess conditions real time Construction activities include: Pipeline rehabilitation Pipeline take up and relay Hydrostatic testing Anomaly digs (investigation and repair work) Maintenance work Call out and emergency work 36

Why is this important? With the stringent regulations in US, the market for pipeline construction on existing pipelines and facilities is expanding at a rapid rate In global markets where there are few regulations related to integrity, the existing infrastructure will need attention This market will grow world wide, and if the incident rate increases it will accelerate 37

Work to Re-Build the Pipeline Infrastructure Re-building a pipeline system requires consideration of more elements than a new construction project Pipeline GIS Mapping and Records System Risk Assessments Engineering Project Management Pipeline Integrity Assessments Operations / Maintenance Repairs Project Elements Budget Controls ROW / Permitting Commissioning & Startup Construction Management 38 Logistics Procurement

Challenges to gaining clear, timely visibility into pipeline integrity Traditional pipeline integrity analysis process Disparate systems and data Dated views of assets Uneven field data updates No single version of the truth Repairs not tracked 39

Meeting Business Goals Can Be Difficult 40

Assessment Method ILI Tools Metal Loss Tools MFL Axial Field Indirect Measurement Compression Wave Ultrasonics Liquid Coupled Direct Measurement Transverse Field (TFI) MFL Circumferential Field for Narrow Axial Oriented Metal Loss Crack Detection Tools Shear Wave Ultrasonics Liquid Coupled Elastic Wave Wheel Coupled For Gas or Liquid Emat Gas Only 41

External Corrosion Direct Assessment 42

Assessing Unpiggable Pipelines through Direct Assessment The Direct Assessment Process is suitable for ECDA, ICDA and SCCDA. Data is mined or created at each step is also being provided back to GIS database to further enhance and provide an integrity driven deliverable for future risk calculations. 1) Pre-Assessment: incorporating various field and operation data gathering, data integration, and analysis and validating that DA is an acceptable assessment method 2) Indirect Inspection: combination of above ground tools and calculations to flag possible corrosion sites (calls), based on the evaluation or extrapolation of the data acquired during Pre-Assessment 3) Direct Examination: excavation and direct assessment to confirm corrosion at the identified sites, and remediation as defined in regulation 4) Post Assessment: determine if direct assessment sites are representative of the conditions of the pipeline, and what activities needs to be conducted moving forward based on the findings from the previous steps 43

Pipeline Integrity Process Where To Take Action There is a defined process to determine the location of the integrity work which is influenced by and dependent on: Assessment of the operating conditions of the line GIS/integrity management data analysis Results from ILI or Direct Assessments Field verification digs Environmental conditions around the line Probability of failure Consequence of failure Accuracy of data and imagery Population density 44

Construction work is extensive One company in the US plans to spend $1B USD/year for 10 years on an 8000 mile system Making lines piggable Hydrostatic testing Anomaly repairs from ILI runs and ECDA work Pipeline replacements Additional valves to improve shut down response times New controls systems Improvements to corrosion control systems This type of work extended around the world represents a tremendous amount of activity well into the future 45

Digs and Repairs The following is an example of an actual process for construction activities that are required following integrity assessments where a pipeline is in need of attention Costs to assess and repair represent a significant cost advantage over replacement of the pipeline and are preferred by most operators Repairs are less disruptive to the environment Proper assessment methods provide accurate dig and repair locations 46

Excavation 47

Evaluation of Pipe 48

Integrity Management Non-Destructive Evaluation (NDE) 49

Coat and Jeep and Backfill on to next dig 50

Integrity Field Repair Methods 51

Hydrotesting and Pipeline Replacements Strength testing is an option vs. replacement Smaller distances but multiple locations Take up and relay or offset and relay Interconnections and service disruptions are a significant issue Coordination with Owner company operations critical

Tracking the Work - Correcting the Data Centerline Adjustment Blue is where the centerline was moved based on surveys and the Red line is where the original centerline existed from the digitization process from the maps. The heavy set blue line is attributed to the PCM survey and was utilized to further adjust the extends of the pipeline segment. 53

Technology ensures improved visibility of condition of pipeline assets The operators need secure and intuitive enterprise wide access to one version of the truth. Access to accurate and current information from anywhere Confidently validate at-risk Locations Comply with Safety and Regulatory Laws 54

Current State of Enterprise Integrity Data Delivery Model Server Cloud GIS Department Enterprise Public GeoEye Proprietary. 2012 GeoEye, Inc. All Rights Reserved User Types 55

Future State of Enterprise Integrity Data Delivery Model Server Cloud GeoEye Proprietary. 2012 GeoEye, Inc. All Rights Reserved GIS Department Engineering Operations User Types 56

Integrity Information Needs to be in the Hands of Operators and Service Providers Access from laptops, tablets, smart phones and other portable devices. GeoEye Proprietary. 2012 GeoEye, Inc. All Rights Reserved 57

Confidently Validate at-risk Locations 58

Confidently Validate at-risk Locations Access to current imagery shows pipeline proximity to critical infrastructure 59

Safety and Compliance Benefits Access up to date, reliable information Avoid fines and penalties Avoid cost and negative PR 60

Questions?