Carl Weimer, Executive Director 300 North Commercial Street, Suite B Bellingham, WA 98225 360-543-5686 carl@pstrust

.org Website - http://pstrust.org

Nebraska Pipelines 101

The Pipeline Safety Trust Who are we and what do we do?
• Changed federal pipeline safety regulations
• Provide increased access to pipeline safety information

• Provide a “public interest” voice to pipeline safety processes and at a variety of meetings
• Serve as the public voice to the media looking into pipeline safety incidents and rules • Partner with groups trying to move pipeline safety forward. * Provide technical assistance to impacted communities

Path to Greater Pipeline Safety

The Public & Local Government

Regulators

Pipeline Operators

Natural Gas Pipeline System

Hazardous Liquid Pipeline System

Natural Gas Transmission Pipelines Carry – natural gas

Hazardous Liquid Pipelines Carry
• Crude oil including dilbit

• Refined products such as
gasoline, diesel, jet fuel

• Carbon dioxide • Anhydrous Ammonia • Highly Volatile Liquids
such as propane, butane, ethylene, condensates

National and Nebraska Pipeline System
The Current U.S. Pipeline System • 182,000 miles of Hazardous Liquid pipelines • 325,000 miles of Gas Transmission and Gathering pipelines • 2,145,000 miles of Natural Gas Distribution mains and service pipelines The Current Nebraska Pipeline System • 3,158 miles of Hazardous Liquid pipelines • 5,874 miles of Gas Transmission pipelines • 12,432 miles of Gas Distribution mains and service pipelines (570,053 total services)

Breakdown of Commodities Shipped in Nebraska Transmission Pipelines
Transmission Pipelines Commodity Anhydrous Ammonia HVL Crude Oil Empty Liquid Mileage 315 672 269 % 3.4% 7.4% 2.9%

Liquefied Petroleum Gas HVL
Natural Gas Natural Gas Liquids HVL Refined Products

483
5,874 194 1,223

5.3%
65.0% 2.1% 13.5%

Synthetic Gas

2

0%

Totals 9,034 100%

What are the major pipelines in York County?

Where are the major pipelines in York County?

How does York County compare to other areas of the country for pipelines?

Comparison with Chester County PA York County, NE – • 576 Square Miles • Population 14,000 • Transmission Pipeline Miles - 151 Chester County, PA – • 760 Square Miles • Population 498,894 • Transmission Pipeline Miles - 594

Incident Trends
Significant Incidents
Hazardous Liquid 200 180 160 140 120 100 80 60 40 20 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Gas Transmission Gas Distribution

Nebraska Hazardous Liquid Significant Incidents
DATE
12/09/2002 02/11/2004 09/27/2004

NAME
KINDER MORGAN ENERGY PARTNERS L.P. JAYHAWK PIPELINE LLC ENTERPRISE PRODUCTS OPERATING LP ENTERPRISE PRODUCTS OPERATING LP ENTERPRISE PRODUCTS OPERATING LLC NUSTAR PIPELINE OPERATING PARTNERSHIP L.P. MAGELLAN PIPELINE COMPANY LP MAGELLAN AMMONIA PIPELINE L.P. MAGELLAN PIPELINE COMPANY LP NUSTAR PIPELINE OPERATING PARTNERSHIP L.P. MAGELLAN PIPELINE COMPANY LP MAGELLAN PIPELINE COMPANY LP PLAINS PIPELINE L.P. NUSTAR PIPELINE OPERATING PARTNERSHIP L.P. MAGELLAN AMMONIA PIPELINE L.P.

CITY
NEHAWKA HOLDREGE BLAIR

DEATHS INJURY
0 0 0 0 0 0

PROPERTY DAMAGE
$83,715 $49,286 $377,576

CAUSE
EXCAVATION DAMAGE MAT'L/WELD/EQUIP FAILURE EXCAVATION DAMAGE

05/23/2006
03/29/2007

VALLEY
YUTAN

0
0

0
0

$188,506
$755,307

MAT'L/WELD/EQUIP FAILURE
EXCAVATION DAMAGE

11/13/2009 06/30/2010 07/23/2010 06/29/2011

FARNAM OMAHA PICKRELL NEBRASKA CITY

0 0 0 0

0 0 0 0

$177,875 $823,836 $164,202 $154,064

MAT'L/WELD/EQUIP FAILURE CORROSION MAT'L/WELD/EQUIP FAILURE MAT'L/WELD/EQUIP FAILURE

07/15/2011 12/10/2011 12/10/2011 03/27/2012

TEKAMAH NEMAHA CITY NEMAHA CITY KIMBALL

0 0 0 0

0 0 0 0

$956,941 $2,283,738 $2,318,063 $188,095

NATURAL FORCE DAMAGE EXCAVATION DAMAGE EXCAVATION DAMAGE EXCAVATION DAMAGE

11/21/2012

FAIRMONT

0

0

$933,000

MAT'L/WELD/EQUIP FAILURE

12/17/2012

GREENWOOD TOTALS

0 0

0 0

$170,195 $9,624,402

MAT'L/WELD/EQUIP FAILURE

Nebraska Nat. Gas Transmission Significant Incidents
DATE 2/22/02 7/22/02 11/8/04 6/22/05 5/18/08 7/18/08 12/20/08 5/4/13 COMPANY CITY NORTHERN NATURAL GAS CO (ENRON) SIOUX FALLS K N INTERSTATE GAS TRANSMISSION CO LODGEPOLE K N INTERSTATE GAS TRANSMISSION CO DAVENPORT KINDER MORGAN INTERST GAS TRANSMISSION CO FRANKLIN NORTHERN NATURAL GAS CO CLATONIA NORTHERN NATURAL GAS CO BEATRICE CORNHUSKER ENERGY LEXINGTON LLC LEXINGTON TALLGRASS INTERSTATE GAS TRANSMISSION LLC UNINCORPORATED TOTALS PROPERTY DEATHS INJURIES DAMAGE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $99,136 $112,815 $106,848 $125,358 $183,923 $676,206 $1,017,856 $496,500 $2,818,645 CAUSE OTHER OUTSIDE FORCE DAMAGE CORROSION EXCAVATION DAMAGE EXCAVATION DAMAGE MAT’L/WELD/EQUI P FAILURE NATURAL FORCE DAMAGE MAT’L/WELD/EQUI P FAILURE MAT’L/WELD/EQUI P FAILURE

Nebraska Gas Distribution Significant Incidents
DATE COMPANY CITY COZAD OMAHA OMAHA PHILLIPS BEATRICE DEATHS INJURIES 0 0 2 0 0 0 0 0 0 0 0 2 1 0 2 1 0 0 2 0 0 1 1 8 PROPERTY DAMAGE $74,575 $122,295 $83,454 $4,769 $166,702 $106,651 $17,252 $156,363 $156,189 $48,016 $2,500 $938,772 CAUSE ALL OTHER CAUSES NATURAL FORCE DAMAGE OTHER OUTSIDE FORCE DAMAGE OTHER OUTSIDE FORCE DAMAGE INCORRECT OPERATION NATURAL FORCE DAMAGE OTHER OUTSIDE FORCE DAMAGE EXCAVATION DAMAGE NATURAL FORCE DAMAGE MAT'L/WELD/EQUIP FAILURE MAT'L/WELD/EQUIP FAILURE K N ENERGY INC(KANSAS 05/20/2002 NEBRASKA GAS CO) (KMI) METROPOLITAN UTILITIES 02/20/2003 DISTRICT 09/13/2005 10/07/2007 03/19/2008 METROPOLITAN UTILITIES DISTRICT SOURCEGAS LLC AQUILA NETWORKS

NORTHWESTERN ENERGY 05/29/2008 LLC KEARNEY 06/18/2008 SOURCEGAS LLC MCCOOK OMAHA SHELBY SUPERIOR OMAHA TOTALS METROPOLITAN UTILITIES 07/15/2009 DISTRICT 12/19/2009 07/19/2011 BLACK HILLS ENERGY CITY OF SUPERIOR UTILITIES

METROPOLITAN UTILITIES 04/05/2012 DISTRICT

What are the causes of hazardous liquid pipeline incidents?

1,185 Incidents nationally 14 incidents in Nebraska

What are the causes of natural gas transmission pipeline incidents?

559 incidents nationally 6 incidents in Nebraska

What are the causes of gas distribution pipeline incidents?

731 incidents nationally 10 incidents in Nebraska

What’s the risk?
• Very, very low probability that a pipeline will fail in any particular location • Potentially huge consequences if a failure occurs

Ever person assesses risk differently, so what should you consider when thinking about risk from pipelines?

Risk = Probability X Consequence
Using the national averages for pipeline incidents over the past 10 years Nebraska could expect 1.3 natural gas transmission incidents each year, and 2.1 hazardous liquid pipeline incidents each year. York County (with 30 miles of gas and 121 miles of hazardous liquid lines) could statistically expect a significant incident once every 142.7 years for gas lines and once every 12.3 years for hazardous liquid.

Is That Safe Enough For You?

Still Safe Enough?

How About Now?

What is the potential impact area?

Where Do The Regulations Come From?
Main Sources of Pipeline Regulations

• U.S. Congress – the Statutes
• U.S. Department of Transportation, Office of Pipeline Safety (PHMSA) – the safety regulations • The Federal Energy Regulatory Commission (FERC) – oversight of interstate rates and routing for interstate natural gas pipelines.

• The States – Can pass stronger rules for intrastate pipelines
• Local Government – Can use their planning, zoning and permitting authority for land uses near pipelines

What Do The Regulations Cover?
Code of Federal Regulations - Title 49 • Part 190 – Program operations, enforcement, rulemaking procedures

• Part 191 - Annual reports, incident reports, and safety-related condition
reports

• Part 192 - Minimum federal safety standards for transportation of natural
and other gas by pipeline

• Part 193 - Federal safety standards - liquefied natural gas facilities • Part 194 - Response plans for onshore oil pipelines • Part 195 - Minimum federal safety standards for transportation of hazardous
liquids by pipeline

• Part 198 - Grants to aid state pipeline safety programs • Part 199 - Drug and alcohol testing

Main Things To Remember About The Regulations
• Rules often have multiple layers to prevent a single threat • Many parts of the regulations are based on risk assessment and management left up to the discretion of the company • Regulations are more stringent in higher consequence areas

Prescriptive vs. Performance Based
Examples
Prescriptive – 70 MPH speed

Limi Performance based – Drive safely

Who Regulates Pipelines in Nebraska?
• The federal Office of Pipeline Safety regulates, inspects and enforces interstate natural gas pipelines and all hazardous liquid pipelines in Nebraska.

• The Pipeline Safety Section of the Fuels Safety Division of the Nebraska State Fire Marshal inspects and enforces the regulations for intrastate natural gas pipelines in Nebraska.

State Regulator Comparison
Year Probable Violations Found Nebraska Pipeline Safety Division 2002 128 2003 81 2004 52 2005 42 2006 32 2007 44 2008 12 2009 21 2010 9 2011 20 Totals 441 Compliance Actions 23 26 18 16 10 22 8 10 6 15 154 Number of Penalties Assessed 0 0 0 0 0 0 0 0 0 0 0 Fines Assessed $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Washington Utilities and Transportation Commission 2002 90 37 2003 12 0 2004 45 0 2005 45 5 2006 64 2 2007 77 4 2008 154 5 2009 90 1 2010 35 0 2011 87 2 Totals 699 56

1 2 0 5 0 0 1 0 0 2 11

$50,000 $90,000 $0 $755,000 $0 $0 $1,250,000 $0 $0 $625,000 $2,770,000

What can and can’t State Government do?
• Can’t regulate or provide enforcement on the safety of interstate pipelines • Can provide stricter regulations, inspection and enforcement on the safety of all intrastate pipelines, and safety inspections for interstate pipelines • Can provide routing authority for all intrastate pipelines and for interstate hazardous liquid pipelines. • Can provide spill response planning for all pipelines

Things that have helped other states
Stronger state presence in regulatory safety efforts
• Additional layer of inspectors to find problems • Stronger regulations in areas unique to the state

• More responsive to local issues and needs

1154 State Pipeline Safety Initiatives that Exceed Federal Code
MICHIGAN MAINE WISCONSIN MISSOURI NEW YORK WASHINGTON FLORIDA NEW JERSEY ARKANSAS CONNECTICUT KANSAS NEW HAMPSHIRE ARIZONA VIRGINIA MINNESOTA TEXAS 79 76 69 68 63 57 53 51 49 48 47 46 39 31 30 30 CALIFORNIA SOUTH CAROLINA INDIANA KENTUCKY RHODE ISLAND NORTH CAROLINA DISTRICT OF COLUMBIA GEORGIA MARYLAND WYOMING COLORADO ILLINOIS IOWA MASSACHUSETTS TENNESSEE PENNSYLVANIA 26 23 21 19 18 17 14 12 12 12 11 11 11 11 11 10 OREGON NEW MEXICO OHIO OKLAHOMA VERMONT LOUISIANA IDAHO ALABAMA MISSISSIPPI WEST VIRGINIA DELAWARE NEBRASKA NEVADA MONTANA NORTH DAKOTA SOUTH DAKOTA UTAH 9 8 8 8 8 7 6 5 5 5 4 3 3 0 0 0 0

Source – National Assoc. of Pipeline Safety Representatives (the state regulators)

Things that have helped other states
Spill Response Planning
• Can go beyond federal efforts to create better prevention and preparedness. • Can provide better transparency and inclusion to make spill plans stronger and more realistic. • Can help increase public understanding and trust in the process

Things that have helped other states
Routing authority for all intrastate pipelines and for interstate hazardous liquid pipelines
• Provides a more coordinated, comprehensive, consistent approach

• Can help focus protection of recognized critical areas
• Can provide a clearer more upfront process for landowners

Things that have helped other states
Rebuilding

• Greater transparency to build awareness and trust

• Citizen and local government involvement and oversight

"The Citizens Committee on Pipeline Safety is established to advise the state agencies and other appropriate federal and local government agencies and officials on matters relating to hazardous liquid and gas pipeline safety, routing, construction, operation, and maintenance.” The committee consists of nine voting members representing the public, including local government, and elected officials. Four nonvoting members represent owners and operators of hazardous liquid and gas pipelines.

What can and can’t local government do?
• Can’t regulate pipeline safety • Can use zoning, planning and permitting authority to protect critical areas, government infrastructure, and reduce risk associated with development near pipelines • Lots of grey areas in between

Land Use Planning Near Pipelines
Before new development is proposed near existing pipelines, or new pipelines are placed near existing development, is the time to think about pipeline safety issues

Pipelines and Informed Planning Alliance Report is available
130 people representing diverse stakeholders came up with 46 recommended practices that local governments should consider adopting to increase pipeline safety

The PIPA Report and more information about planning near pipelines can be found at: http://www.pstrust.org/planningnearpipes.htm

Multiple layers of bad planning

Easy things local governments can do
• Show pipelines on plats and zoning and planning maps. GIS Layers can be obtained free from PHMSA

Easy things local governments can do
• Require the use of One Call for building permits that require excavation.

Easy things local governments can do
Adopt Consultation Zones

Consultation Zone – Area within which developers and pipeline operators are required to communicate plans

Consultation Zone

Easy things local governments can do
Ensure emergency response personnel are trained for pipeline emergencies
Pipeline operators have emergency response plans you should know about: “Notifying fire, police, and other appropriate public officials of hazardous liquid or carbon dioxide pipeline emergencies and coordinating with them preplanned and actual responses during an emergency”

Harder things local governments can do
Adopt Planning Zones where additional restrictions on development or pipelines may apply.
• Various types of setbacks

• Reduce pipeline risk through the design, construction and location of structures near transmission pipelines

Harder things local governments can do
Defend your infrastructure (roads, ditches, parks, etc.) through strong agreements
• Well written easements, crossings and haul agreements
• Adequate compensation of construction and repair disruptions • Adequate insurance and indemnification

Harder things local governments can do
Defend your critical areas
• Steer pipelines around critical areas defined in your code such as well head protection areas, critical wetlands, sole source aquifers, protected agriculture areas, planned development areas, and other sensitive areas • Provide special requirements to protect local resources. Example - if constructing linear utilities on agricultural land how is soil protected and invasive species introduction prevented.

Where to get more information about what local government can do
• Pipeline Safety Trust
http://pstrust.org/trust-intiatives-programs/planning-near-pipelines

• Pipeline and Hazardous Materials Safety Administration
http://primis.phmsa.dot.gov/comm/pipa/LandUsePlanning.htm

• Municipal Research & Services Center
http://www.mrsc.org/Subjects/PubSafe/transpipes.aspx

Although pipeline incidents may rarely happen within your local jurisdiction

Through up front planning you can avoid this

Thanks for listening and for your interest in pipeline safety

http://pstrust.org

One Last Set of Important Statistics

Vs.

2013 Preseason Ranking – Michigan 17, Nebraska 18
Michigan Nebraska Wins 903 856 Loses 315 353 Ties 36 40 Winning PCT 73.44% 70.13%

Last Years Home Attendance Michigan (6 games) 673,511 Total Nebraska (7 games) 598,617 Total

112,252 Average/Game 85,517 Average/Game

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