New leadership teams on pipeline safety performance improvement

WASHINGTON, August 18, 2011 – API and the Association of Oil Pipe Lines (AOPL) are creating pipeline safety performance improvement Leadership Teams. The teams supplement ongoing performance improvement processes, which have significantly reduced hazardous liquid pipeline accidents over the past decade.

The first seven AOPL-API Leadership Teams are developing better solutions for:

• Research and Development and Enhanced Technology
• Leak Detection
• Enhanced Data Integration
• Sharing Safety Practices and Lessons
• Damage Prevention
• External Communications
• Strategic Planning

"The safety record of the liquids pipeline industry continues to improve, but we must do more," said Steve Wuori, President, Liquids Pipelines, Enbridge, Inc., and Chairman of the AOPL Board. "We are committed to continuous improvement in pipeline performance and safety, with an ultimate goal of zero accidents"

"For more than a decade, our industry has significantly reduced pipeline accidents by improving our performance processes through our Environment and Safety Initiative, the Pipeline Performance Tracking System and advisory program, and the Performance Excellence Team," said Harry Pefanis, President and COO, Plains All American L.P., and Chairman of the API Pipeline Subcommittee. He continued, "We periodically review our processes and seek to build on our record through new initiatives, such as creating the Pipeline Information Exchange to enhance our members’ ability to share lessons learned. Recognizing there is always room for improvement, we recently launched these Leadership Teams that will focus on specific pipeline safety improvement areas."

Mr. Wuori and Mr. Pefanis discussed these Leadership Teams in an August 16 letter to the Administrator of the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA), Cynthia Quarterman. The letter to Administrator Quarterman also explained that:

• More than 90 percent of liquid transmission line mileage was reported assessed by in-line inspection devices or other qualified assessment techniques in a recent industry survey;
• AOPL and API members continue to increase the use of in-line inspection as a key component of integrity management programs; and
• AOPL and API members perform the most critical repairs on the same schedule throughout their systems, regardless of whether they are in a High Consequence Area.

Mr. Wuori and Mr. Pefanis said "We do this not because it is required, but because it makes pipelines safer."

AOPL and API member companies have held a series of meetings dedicated to considering additional safety improvement initiatives. As a result of this intensive effort, executive leaders representing AOPL and API member companies created the seven Leadership Teams. Each Leadership Team includes executive and operational personnel from AOPL and API member companies. Leadership Teams will report directly to the AOPL-API Joint Pipeline Leadership, which will meet on these topics several more times in 2011.

AOPL-API Leadership Teams on Performance Improvement

Research and Development/Enhanced Technology

AOPL and API believe additional research focus and resources are needed to advance pipeline safety and integrity. The R&D/Enhanced Technology Leadership Team will assess research gaps, identify critical research needs, and determine how existing funding strategies and timelines should change. The Team will specifically consider in-line inspection capabilities to detect cracking and dents with metal loss, in-line inspection capabilities to assess pipelines currently considered unpiggable, improvement of leak detection capabilities, and enhanced excavation damage prevention technologies, including remote right-of-way detection.

Leak Detection

AOPL and API are committed to leak detection improvements for hazardous liquid pipelines. We recognize current technology gaps that limit the operator’s capacity to quickly detect and respond to pipeline releases, particularly when associated with low release rate events and with multiphase products. AOPL and API continue to support R&D efforts to improve overall hazardous liquid pipeline leak detection capabilities. The Leak Detection Leadership Team will also consider development of an industry standard with meaningful minimum capabilities under various operational and release scenarios.

AOPL and API also recognize some historical pipeline release events underscore opportunities for improvements in one or more of the areas of leak recognition, pipeline shutdown and isolation, and leak notification to emergency response and regulatory agencies. The Leak Detection Leadership Team will capture and share best practices in existing leak detection programs, with the objective of ensuring that we are collectively exploiting the capabilities of existing leak detection technology.

Enhanced Data Integration

AOPL and API believe there is a need for better data integration tools that consider singular and interactive threats. The Enhanced Data Integration Leadership Team will consider a platform for the liquid pipeline industry to better generate, collect, process, share, and integrate data on pipeline safety, operational excellence, integrity management, and failure risk. The Team will consider modifying existing standards and recommended practices to include more complete guidance on data integration or a new Recommended Practice on data integration techniques, tools, and implementation, working with PHMSA and with vendors.

Sharing Safety Practices and Lessons

AOPL and API believe sharing information on safety practices and lessons learned within the operator community improves pipeline safety and that our decade-old practices should be reviewed for possible improvements. The Sharing Practices Leadership Team will consider how the Pipeline Performance Tracking System can share lessons learned about causes and follow up action, use more granular data, and develop new metrics for awareness. The Team will expand the value of the Pipeline Information Exchange (PIX) by creating a process for sharing lessons and recommending industry-wide changes after the conclusion of the annual workshop. The Team will also create more processes for sharing information across industries (with gas transmission and distribution), across AOPL-API committees, among companies, and within companies.

Damage Prevention

While there has been significant success reducing incidents, AOPL and API believe more can be done to prevent excavation damage to pipelines. The Damage Prevention Leadership Team will complete the development of, and promote, Model One-Call provisions, advocate for strong damage prevention laws and enforcement, consider the use of Pipeline Performance Tracking System Advisories to stakeholders, engage directly with excavator groups, and develop public education programs with other stakeholders.

External Communications

AOPL and API believe the liquids industry can do more to communicate our challenges, successes, and forward direction, and better understand the perspectives of others. The External Communications Leadership Team will foster a high-quality dialogue with government agencies, safety advocates, and the public at large, to better understand stakeholder concerns, improve the quality and responsiveness of industry answers to those concerns, and discuss solutions.

Strategic Planning

AOPL and API believe our many existing and potential performance improvement processes must continue to receive direction and support from executive leaders in our industry. The Strategic Planning Leadership Team will develop a regular process to ensure that executives are engaged in the work of our safety improvement teams and standing committees, give feedback, set priorities, and provide resources where needed.

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API represents more than 470 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.