NATIONAL INVENTORY DECEMBER 2013 • CAST IRON GAS MAIN EXISTS IN 35 STATES • 30,905 MILES • 11,991 CAST IRON SERVICE LINES CAST IRON MAIN INVENTORY REDUCTION CAST IRON SERVICE LINE REDUCTION BARE STEEL PIPE INVENTORY DECEMBER 2013 • 56,883 MILES OF BARE STEEL MAIN NATION WIDE • 2,361,093 INDIVIDUAL BARE STEEL SERVICE LINES NATION WIDE BARE STEEL MAIN REDUCTION BARE STEEL SERVICE LINE REDUCTION STATES WITH COST RECOVERY MECHANISMS AS OF SEPTEMBER 2012 EXCAVATION DAMAGE REMAINS THE NO. 1 CAUSE OF SIGNIFICANT INCIDENTS SIGNIFICANT DISTRIBUTION INCIDENTS DISTRIBUTION INCIDENT FATALITIES GAS DISTRIBUTION INCIDENTS 2013 CAST IRON REPLACEMENT CHALLENGES • RISK BASED REPLACEMENT PROGRAMS • QUALIFIED WORKFORCE • SCHEDULE CONFLICTS WITH MUNICIPALITIES • EXPANSION VS. REPLACEMENT RISK BASED REPLACEMENT PROGRAMS • IDENTIFICATION OF HIGHEST RISK PIPE BASED ON DIMP PROGRAM • CAST IRON MAY NOT BE THE HIGHEST RISK PIPE IN THE SYSTEM • BARE STEEL • COPPER • VINTAGE PLASTICS VERIFICATION OF IMPLEMENTATION • MUNICIPAL PROJECT DEVIATIONS • ROAD OPENING PROHIBITIONS • BUDGET CONSTRAINTS • UNFORESEEN FINANCIAL ISSUES MAY DELAY PROJECTS RISK BASED PROGRAM • SHOULD IDENTIFY • CORROSION / GRAPHITIZATION • LEAK PRONE PIPE • SPECIFIC RISKS TO PIPE • • • • THIRD PARTY DAMAGE OUTSIDE FORCES MATERIAL FAILURE ETC. QUALIFIED WORKFORCE LIMITATIONS • NEW CONSTRUCTION IS NOT A COVERED TASK UNDER OPERATOR QUALIFICATION • CONTRACTED LABOR CAN INSTALL NEW PIPE BUT CANNOT PERFORM TIE IN TO LIVE GAS • OPERATOR QUALIFIED WORKFORCE CANNOT KEEP UP WITH CONTRACTOR CREWS • MOVE OUT OF METER SETS • LINE STOPPING • MAIN TIE INS SCHEDULE CONFLICTS • MUNICIPAL INFRASTRUCTURE REPLACEMENT PROGRAMS • CI OFTEN REPLACED IN CONJUNCTION WITH SEWER REPLACEMENT OR ROAD RENEWAL • MUNICIPAL PERMITTING • EXCAVATION PERMITS • MUNICIPAL LINE LOCATING • TRAFFIC ROUTING ISSUES SYSTEM EXPANSION VS. REPLACEMENT • POPULATION GROWTH IN SOME AREAS PULL RESOURCES FROM REPLACEMENT PROJECTS • OPERATORS FOCUSED ON OBTAINING NEW REVENUE SOURCES • EXPANSION OF NATURAL GAS AVAILABILITY INTERIM CUSTOMER AND PUBLIC PROTECTION • PUBLIC AWARENESS PROGRAMS (PA) • INNOVATIVE, ROBUST PA PROGRAMS TO ENSURE RISKS ARE KNOWN TO ALL STAKEHOLDERS • ENHANCED PA EFFECTIVENESS EVALUATIONS • USE OF NEW INTERACTIVE PROGRAMS • • AS PIPELINE WATCH TO ENGAGE PUBLIC GA EMERGENCY RESPONDER TRAINING PROGRAM ENHANCED DIMP CAN REDUCE RISK • PROGRAMS THAT FULLY IMPLEMENT THE INTENT OF THE CODE • NOT SIMPLY COMPLIANT • ENHANCED KNOWLEDGE OF THE SYSTEM • CAPTURING INFORMATION AT EVERY OPPORTUNITY • ENSURING THAT THE DATA COLLECTED FOR NEW PIPING IS APPROPRIATE AND USEFUL API RP 1173 PIPELINE SAFETY MANAGEMENT SYSTEMS CAN REDUCE RISK • ENGAGE ENTIRE WORKFORCE FROM TOP MANAGEMENT TO FRONT LINE FIELD EMPLOYEES • COMMUNICATION OF RISKS • IMPLEMENTATION OF OPERATIONAL CONTROLS • INCIDENT AND NEAR MISS INVESTIGATIONS • SAFETY CULTURE VS. COMPLIANCE CULTURE