Pipeline Safety Management System

API 1173

1

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

• 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.

NTSB Recommended:

American Petroleum Institute (API) develop

comprehensive SMS standards specific to

the pipeline industry.

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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

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.”

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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

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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 …

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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

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

Successful implementation of a Safety Management System

depends on actions of individuals and groups within the

organization.

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

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.”

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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

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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.

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INGAAMeeting 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

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Years

3-4

Years

1-2

PSMS Implementation energy

LONG-TERM GOALS

1. Create awareness

2. Improve understanding

3. Assist institutionalizing

4. Support measurement

5. Enable evaluation

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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 color18

PSMS Implementation energy

BOOKLETS

THREE BOOKLETS

1. Introduction

2. Elements

3. Implementation

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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

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APGA • Will adapt RP 1173 for the unique issues of public

gas systems

- Leadership

- Fostering a safety culture

• Discussion Group

• 9 AGA member companies volunteerto pilot implementation

• 2016 workshop

• Roadmap guidelines document

AGA Activities

Related to API

1173

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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 2016

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9 AGA Member Companies Volunteered to Pilot Implementation

• Washington Gas Light

• AGL Resources

• Piedmont

• CenterPoint

• Eversource

• National Grid

• PG&E

• Southwest Gas

• Vectren

• AGA member

companies will pilotthe implementationof API 1173 at theirown companies.

• Over the course of a year, the companies will share information with each other

• At the end of the year, these companies will “report” their results to other AGA member companies 24

AGA Workshop on PipelineSafety Management Systems

• Speakers/presenters will include

• Pilot implementation volunteer(s)

• Regulatory representatives

• API 1173 development teamrepresentatives

In the first quarterof 2016, AGA will host a workshop on Pipeline SafetyManagement Systems

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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

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Thank you

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