Pipelines & Risk Based Management

Joe Killins & Associates, LLCJoe Killins & Associates, LLC

Pipelines & Risk Based Pipelines & Risk Based ManagementManagement

How Safe is Safe?How Safe is Safe?


How Safe is Safe?How Safe is Safe?

Energy Transportation Network Energy Transportation Network What does safe operation require?What does safe operation require? What does risk management provide?What does risk management provide? Hazardous Liquid IMP RuleHazardous Liquid IMP Rule What is Risk? What is Risk? Pipeline Threats Pipeline Threats Recent industry performanceRecent industry performance


Energy Transportation Energy Transportation NetworkNetwork

160,000 miles of onshore and 160,000 miles of onshore and offshore Hazardous Liquid Pipelinesoffshore Hazardous Liquid Pipelines

298,000 miles of onshore and 298,000 miles of onshore and offshore Gas Transmission Pipelinesoffshore Gas Transmission Pipelines

1,850,000 miles of Natural Gas 1,850,000 miles of Natural Gas Distribution pipelinesDistribution pipelines


Pipelines Are A Long Term Pipelines Are A Long Term AssetAsset

67% of Hazardous Liquid Pipelines 67% of Hazardous Liquid Pipelines built before 1970built before 1970

In-service degradation can be In-service degradation can be mitigatedmitigated Corrosion control – Cathodic Protection and Corrosion control – Cathodic Protection and

CoatingsCoatings Trained personnelTrained personnel Protection from 3Protection from 3rdrd Party Damage Party Damage Testing with smart and smarter pigs; non-Testing with smart and smarter pigs; non-

destructive testing; other inspectiondestructive testing; other inspection

Timely Repairs and maintenanceTimely Repairs and maintenance


Safe Operation Requires:Safe Operation Requires:

Sound system design;Sound system design; Selection and use of qualified materials;Selection and use of qualified materials; Proper construction;Proper construction; Thorough and adequate inspection, testing, Thorough and adequate inspection, testing,

maintenance and repair;maintenance and repair; Continuous system monitoring and control;Continuous system monitoring and control; Operations conducted by trained and qualified workers;Operations conducted by trained and qualified workers; Implementation of damage prevention best practices;Implementation of damage prevention best practices; Identification and mitigation of risks; andIdentification and mitigation of risks; and Coordination and preparation for emergency response.Coordination and preparation for emergency response.


Risk Management Should:Risk Management Should:

Identify needsIdentify needs Analyze cost vs benefit of various Analyze cost vs benefit of various

choiceschoices Establish an operating disciplineEstablish an operating discipline Measure all the processesMeasure all the processes Continuously improve all aspects of Continuously improve all aspects of

the operationthe operation


Hazardous Liquid IMP RuleHazardous Liquid IMP Rule

IMP Rule March 2001IMP Rule March 2001 Identify segments that could affect Identify segments that could affect

HCAs by December 31, 2001HCAs by December 31, 2001 Written IMP by March 31, 2002Written IMP by March 31, 2002 Assess 50% of segments by Assess 50% of segments by

September 30, 2004September 30, 2004 Complete Baseline Assessments by Complete Baseline Assessments by

March 31, 2008March 31, 2008


What is Risk?What is Risk?

RiskRisk is a is a conceptconcept that denotes a potential that denotes a potential negative impact to an asset or some negative impact to an asset or some characteristic of value that may arise from characteristic of value that may arise from some present process or future event. In some present process or future event. In everyday usage, "risk" is often used everyday usage, "risk" is often used synonymously with the probability of a loss synonymously with the probability of a loss or threat. In professional risk assessments, or threat. In professional risk assessments, risk combines the probability of an event risk combines the probability of an event occurring with the impact that event would occurring with the impact that event would havehave

http://en.wikipedia.org/wiki/Concept


Risk Assessment MethodsRisk Assessment Methods

Risk = Likelihood x ConsequenceRisk = Likelihood x Consequence


Pipeline ThreatsPipeline Threats

Time DependentTime Dependent External corrosionExternal corrosion Internal CorrosionInternal Corrosion Stress Corrosion CrackingStress Corrosion Cracking

StableStable Manufacturing Related DefectsManufacturing Related Defects

Defective pipe seamDefective pipe seam Defective pipeDefective pipe


Pipe ThreatsPipe Threats

Welding/Fabrication RelatedWelding/Fabrication Related Defective pipe girth weldDefective pipe girth weld Defective fabrication weldDefective fabrication weld Wrinkle bend or buckleWrinkle bend or buckle Stripped threads/broken pipe/coupling failureStripped threads/broken pipe/coupling failure

EquipmentEquipment Gasket O-ring failureGasket O-ring failure Control/Relief equipment malfunctionControl/Relief equipment malfunction Seal/pump packing failureSeal/pump packing failure MiscellaneousMiscellaneous


Pipe ThreatsPipe Threats

Time IndependentTime Independent Third Party/Mechanical DamageThird Party/Mechanical Damage

Damage inflicted by first, second or third parties Damage inflicted by first, second or third parties (instantaneous/immediate)(instantaneous/immediate)

Previously damaged pipe (delayed failure mode)Previously damaged pipe (delayed failure mode) Incorrect operationsIncorrect operations

Incorrect operational procedureIncorrect operational procedure Weather Related and Outside ForceWeather Related and Outside Force

Cold weatherCold weather LightningLightning Heavy rains or floodsHeavy rains or floods Earth MovementEarth Movement


Uses of Risk ManagementUses of Risk Management

Prioritization of Line Assessment SchedulesPrioritization of Line Assessment Schedules Selection of Assessment MethodsSelection of Assessment Methods Elimination of tens of thousand of integrity Elimination of tens of thousand of integrity

threatsthreats Preventive and Mitigative MeasuresPreventive and Mitigative Measures

Implementing damage prevention best practicesImplementing damage prevention best practices Enhanced cathodic protection monitoringEnhanced cathodic protection monitoring Set appropriate inspection intervalsSet appropriate inspection intervals Enhanced trainingEnhanced training Installing EFRDsInstalling EFRDs Modifying leak detection and pressure monitoring Modifying leak detection and pressure monitoring

systemssystems

Pipelines & Risk Based Management

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