Pipeline Performance Paths to Improvement

Dave Grzyb, Authorizations Branch

March 27, 2014

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Outline

Pipeline Inventory and Performance

highlights

Problem areas

Possible solutions

Pipeline Inventory

Presently >415,000 km* (includes 11,500 km of

gas utility pipeline in AUC jurisdiction)

Plus ~ 30,000 km of transmission systems, under

NEB jurisdiction

86% of AER jurisdiction are steel pipelines

91% of AER jurisdiction are 6 (168.3 cm)

diameter and smaller, typical of production fields

*end of 2012

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Pipeline Incidents 1990 - 2012

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Pipeline Incident Frequency 1990 - 2012

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Pipeline Incident Cause 1990 - 2012

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What do we know about incidents?

Almost 91% of incidents are on 6 pipe and

smaller.

Need to consider the root cause, Why did we

have this corrosion failure?

Detailed review shows that failure of controls

is a predominant reason incidents occur.

Example external corrosion, but

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Failure of construction control

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Cue the Regulations

If we have failure of controls, then is the

solution to have more regulations?

Requirements are already extensive.

Are they being applied adequately?

Too complex?

Lack of understanding or competency?

Insufficient time, money, or commitment?

Difficulty in managing the number of tasks?

How to manage the controls?

Pipeline owners must manage a number of

complex tasks

Design and engineering

Construction, and quality inspection

Operations and maintenance

Ensuring personnel competency

Managing change, operational and personnel

Self-audit and continuous improvement

CSA Z662 provides some tools to help

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CSA Z662 Integrity Management Program

AER mandated for all pipelines June 06.

Procedures for managing the integrity of the

pipeline system by

assessing risks, mitigating risks, managing integrity

data, and monitoring results

Much broader than just corrosion

Allows for some performance-based regulation

IMP develops procedures, but how do we ensure

they are followed?

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CSA Z662 Safety and Loss

Management System

Addition to Z662 in 2007, mandatory

A documented system of management

System to ensure programs are implemented

Requires leadership commitment, definition of

policy, operational controls, management of

change, continual improvement, record keeping

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Implementation of SLMS and IMP

Both are mandated requirements

Require significant development effort

Assessment process still to be developed

Reflect complexities of different systems

Define minimum components

Pipeline Safety Review of 2013

A number of the recommendations could be

addressed within a SLMS

Summary

IMPs and SLMS are requirements in Alberta

and other jurisdictions

Licensees must identify potential threats,

develop programs and processes for

managing them, and demonstrate that you are

doing so

Significant work to implement, but are

expected to prevent incidents

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Why now?

Unprecedented public interest in all resource

development activity

Need to improve and preserve pipeline

industrys social license to operate

Acceptance of pipelines is crucial to Canadas

business needs, and social well-being

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Lac-Megantic, P.Q.

Gainford, AB

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