Pipelines & Risk Based

Management

How Safe is Safe?

Joe Killins & Associates, LLC

 How Safe is Safe?
 Energy Transportation Network
 What does safe operation require?
 What does risk management provide?
 Hazardous Liquid IMP Rule
 What is Risk?
 Pipeline Threats
 Recent industry performance
Joe Killins & Associates, LLC
Energy Transportation Network
 160,000 miles of onshore and offshore
Hazardous Liquid Pipelines
 298,000 miles of onshore and offshore
Gas Transmission Pipelines
 1,850,000 miles of Natural Gas
Distribution pipelines

Joe Killins & Associates, LLC

Pipelines Are A Long Term Asset
 67% of Hazardous Liquid Pipelines built
before 1970
 In-service degradation can be mitigated
 Corrosion control – Cathodic Protection and Coatings
 Trained personnel
 Protection from 3rd Party Damage
 Testing with smart and smarter pigs; non-destructive
testing; other inspection
 Timely Repairs and maintenance

Joe Killins & Associates, LLC

 Safe Operation Requires:
 Sound system design;
 Selection and use of qualified materials;
 Proper construction;
 Thorough and adequate inspection, testing, maintenance
and repair;
 Continuous system monitoring and control;
 Operations conducted by trained and qualified workers;
 Implementation of damage prevention best practices;
 Identification and mitigation of risks; and
 Coordination and preparation for emergency response.

Joe Killins & Associates, LLC

 Risk Management Should:
 Identify needs
 Analyze cost vs benefit of various choices
 Establish an operating discipline
 Measure all the processes
 Continuously improve all aspects of the
operation

Joe Killins & Associates, LLC

 Hazardous Liquid IMP Rule
 IMP Rule March 2001
 Identify segments that could affect HCAs
by December 31, 2001
 Written IMP by March 31, 2002
 Assess 50% of segments by September
30, 2004
 Complete Baseline Assessments by March
31, 2008
Joe Killins & Associates, LLC
 What is Risk?
 Risk is a concept that denotes a potential
negative impact to an asset or some
characteristic of value that may arise from some
present process or future event. In everyday
usage, "risk" is often used synonymously with
the probability of a loss or threat. In professional
risk assessments, risk combines the probability
of an event occurring with the impact that event
would have

Joe Killins & Associates, LLC

 Risk Assessment Methods

Risk = Likelihood x Consequence

Joe Killins & Associates, LLC

 Pipeline Threats
 Time Dependent
 External corrosion
 Internal Corrosion

 Stress Corrosion Cracking

 Stable
 Manufacturing Related Defects
 Defective pipe seam
 Defective pipe

Joe Killins & Associates, LLC

 Pipe Threats
 Welding/Fabrication Related
 Defective pipe girth weld
 Defective fabrication weld
 Wrinkle bend or buckle
 Stripped threads/broken pipe/coupling failure
 Equipment
 Gasket O-ring failure
 Control/Relief equipment malfunction
 Seal/pump packing failure
 Miscellaneous

Joe Killins & Associates, LLC

 Pipe Threats
 Time Independent
 Third Party/Mechanical Damage
 Damage inflicted by first, second or third parties
(instantaneous/immediate)
 Previously damaged pipe (delayed failure mode)
 Incorrect operations
 Incorrect operational procedure
 Weather Related and Outside Force
 Cold weather
 Lightning
 Heavy rains or floods
 Earth Movement

Joe Killins & Associates, LLC

 Uses of Risk Management
 Prioritization of Line Assessment Schedules
 Selection of Assessment Methods
 Elimination of tens of thousand of integrity
threats
 Preventive and Mitigative Measures
 Implementing damage prevention best practices
 Enhanced cathodic protection monitoring
 Set appropriate inspection intervals
 Enhanced training
 Installing EFRDs
 Modifying leak detection and pressure monitoring systems

Joe Killins & Associates, LLC

Joe Killins & Associates, LLC