Infrastructure Challenges

Eric T. Belle

Manager, Field Engineering

Columbia Gas of Kentucky

Columbia Gas of Ohio

Governor's Conference on Energy and The Environment

October 8, 2014

Presentation Talking Points

• Define Columbia’s natural gas distribution infrastructure

• Discuss the challenges with natural gas infrastructure

• Describe Columbia’s plan to address natural gas infrastructure

• Detail Columbia’s progress with replacing its aging infrastructure

• Questions

Columbia’s Distribution Infrastructure

• Columbia operates 2,564 miles of distribution gas mainlines• These distribution gas mainlines have various characteristics:

– Vintage*– Material type*– Diameter– Pipe Wall Thickness– Pipe Wall Coating– Operating Pressure

• Distribution gas mainlines play critical role in providing safe, reliable service to approximately 140,000 residential, commercial, and industrial customers in Columbia’s service areas.

2013 Calendar Year Annual DOT Report

Underground Network of Integrated Mainlines

Columbia’s Distribution Infrastructure

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301.5 309.9

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2013 Vintage Chart

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Columbia’s Distribution Infrastructure

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2013 Material Chart

Bare SteelCoated ProtectedCast/Wrought IronPlasticOtherM

iles

Natural Gas Distribution Infrastructure Challenges

• Columbia monitors and evaluates the condition of its aging infrastructure

• Defined “priority pipe” as bare steel and cast/wrought iron

• Priority pipe has a greater probability to leak due to accelerated corrosion

• Cast iron distribution mainlines have the greater probability to leak at bell joints due to earth movement or ground disturbance

• 44% of distribution mainlines were installed prior to 1969

• 17% of distribution mainlines are bare steel or cast/wrought iron

Aging infrastructure

Increased Operation and Maintenance Activity

Columbia’s Grade 2 Leaks

2008 2009 2010 2011 2012 20130

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Non-Hazardous Leaks

Priority Pipe (miles) Grade 2 Leaks Found

Natural Gas Distribution Infrastructure Challenges

2008 2009 2010 2011 2012 20130

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0.80CKY Main Leak Incident Rates

Priority Pipe (miles) Leaks per Total Main Corrosion Leaks per Bare Steel

Columbia’s Infrastructure Plans

• In 2008, Columbia began its accelerated main replacement program

• Program targets the replacement of priority pipe, ineffectively coated steel, service lines, and associated appurtenances

• 30 year program to replace approximately 520 miles

• Total program cost estimated at $210 million dollars

• Supports goal of providing safe reliable service

Accelerated Main Replacement Program

Evaluation and Prioritization

Columbia’s Infrastructure Replacement Progress

• Columbia retired approximately 83 miles of bare steel and cast/wrought iron pipe and related appurtenances

• Columbia spent approximately $61 million dollars on its accelerated infrastructure replacement program

• Columbia continues its effort to work with municipalities to replace bare steel and cast/wrought iron infrastructure in conjunction municipal improvement projects

• Minimizes additional construction which impacts roadway and public sentiment

2008 - 2013 Status Report

Sustained Execution Excellence

Questions