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Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream Services For: Gas Pipeline Advisory Committee December 13, 2012

Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

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Page 1: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Integrity Management Continuous Improvement

Fitness For Service and Management of Pre-Regulation Pipe

Chad ZamarinChief Operating Officer

NiSource Midstream Services

For:Gas Pipeline Advisory Committee

December 13, 2012

Page 2: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

What Is Fitness For Service (FFS)?

The ability of a system or component to provide continued service, within established regulations and margins for safety•Well-accepted approach to evaluate condition of a system or component to determine acceptability for continued operation•Applied in petroleum refining, petrochemical, pulp and paper, nuclear, coal and gas-fired electric power industries•One of the first acknowledged threat specific applications was in the pipeline industry

B31G, a method for calculating the remaining strength of pipelines in areas with metal loss, first published in 1984

Page 3: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Fitness For Service (FFS) for pipelines

Disciplined approach to assessing the condition of a pipeline component or system to demonstrate safety and reliability•Not a bypass for strong regulations – in fact, a basis for strong regulations•Process focused•Based on sound engineering•Numerous examples within existing regulatory framework

Alternative MAOP (liquids and gas) ERW Seam Integrity Threat specific integrity assessment Defect specific engineering critical assessment (ECA)

Page 4: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

4

“Traceable, verifiable and complete”

Significant Focus on Records and MAOP

• PHMSA Advisory Bulletins• NTSB Recommendations• California MAOP Order

MAOP impacts numerous key functions• Understanding MAOP and related properties are critical to operating a safe

pipeline system

Gas Control

Facility Planning FERC Compressor

Measurement & Regulation

Project Mgmt

Pipeline & Corrosion Operations

Integrity Mgmt

Technical Data /

Geographic Data

Systems

•SCADA set points and alarms•System

operation

•Capacity & through-put to meet market demand•Modeling

analysis

•FERC certificated MAOP for pipeline

•Shutdown set points for compressor units•Operation of

compressor units

•Set points for over-pressure protection•Type of over-

pressure protection selected

•Pipeline design, construction & qualification testing requirements for new or replacement pipes•Safety measures

taken during maintenance, construction or anomaly investigations

• Jurisdictional gathering line determinations•RSTRENG or

other remaining strength calculations•Load and other

calculations•May influence

defect repair methods•CIS frequency

based on risk•May impact

areas considered active corrosion zones

•Pipeline operations, type & frequency of maintenance activities•Recordkeeping

associated with pipeline•Safety measures

regarding defects, excavation, public safety, etc.•Emergency

measures & planning•Pipeline isolation

and valve design

•Determining HCA areas based on PIR calculations•May impact

ability to pig pipeline•Failure pressure

calculations for anomaly indications•Risk calculated

for the pipeline

•Outcome of Class Locations determinations•PIR calculations•MAOP data in

GIS

Page 5: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Recognized need to define and implement a “fitness for service” protocol for pipelines built prior to regulations •Develop and apply guidance, including a process for systematically validating records and the MAOP. •Process will address NTSB recommendations and PHMSA advisory to demonstrate traceable, verifiable and complete records•Where records do not meet this standard, a process will include MAOP validation protocol to be applied within a defined period of time

INGAA CommitmentsFitness For Service for Pre-Regulation Pipe and MAOP Validation

Page 6: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Fitness For Service for Pre-Regulation Pipe and MAOP Validation

• Augmenting risk assessment and threat management to address material threats more aggressively for previously untested pipe.

• Where traceable, verifiable and complete records exist to establish MAOP, and there is a pressure test to 1.25xMAOP, continue to operate under 49 CFR 192.

• Where records are incomplete, or if the pressure test does not meet above criteria or there is no historical pressure test, apply FFS Process For Managing Pre-Regulation Pipe.

• Where records do not exist or are incomplete for a segment containing short sections of pipe in a replacement project or tie in of a line or appurtenance prior to the Federal regulations coming into effect, assign the segment as a high priority for hydrostatic pressure testing, direct examination and testing or replacement (San Bruno Provision – High Priority Slide 13).

• Evaluate use of historical pressure tests and piggability

• INGAA is working with AGA, API, AOPL and research community to develop ILI technology to evaluate material and construction threats in lieu of hydrostatic pressure testing.

Page 7: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Process for Traceable, Verifiable and Complete Records

Locate RecordsLocate Records

Are ThereGaps In Data?

Are ThereGaps In Data?

Compile DataCompile Data

Verify DataVerify Data Document GapsDocument Gaps Are GapsResolved? Are Gaps

Resolved?

Link To Data Base and Retain

Link To Data Base and Retain

Apply MOC In Changing Records

Apply MOC In Changing Records

Define Means To Resolve Gaps

Define Means To Resolve Gaps

Lack of Pressure Test Meeting 1.25xMAOP -

Apply Process For Managing Pre-Regulation Pipe

Yes

No Yes

No

Valid DataValid Data

Traceable, Verifiable and Complete Record

Guidance

Page 8: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Process For Managing Pre-Regulation Pipe

• Legislation included an MAOP / records requirement, broad stakeholder need• INGAA commissioned workgroup focused on records and MAOP• Broad Industry

Involvement• Operators are already

aggressively researching their systems

Fitness For Service for Pre-Regulation Pipe and MAOP Validation

Page 9: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Process For Managing Pre-Regulation Pipe

• FFS Process based on prior precedent – hazardous liquids regulation• Highest risk pipelines likely

require pressure test if records are not available

• Medium risk pipelines will require test or equivalent measure on longer timeline

• Continue operating low risk pipelines under current regulations

Fitness For Service for Pre-Regulation Pipe and MAOP Validation

Page 10: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Process For Managing Pre-Regulation Pipe

Discussion Draft – Work In Progress

Fitness For Service for Pre-Regulation Pipe and MAOP Validation

Page 11: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Risk Based Alternative

Risk Based Alternative Draws From Approach Used for Hazardous Liquid Pipelines at 49 CFR 195.303

LF-ERW is low frequency electric resistance welded; EFW is electric fusion or flash welded; and JF is joint factor as defined at 49 CFR 192.113

Process For Managing Pre-Regulation Pipe

Discussion Draft – Work In Progress

Fitness For Service for Pre-Regulation Pipe and MAOP Validation

Page 12: Integrity Management Continuous Improvement Fitness For Service and Management of Pre-Regulation Pipe Chad Zamarin Chief Operating Officer NiSource Midstream

Technical LeadMark Hereth

Managing DirectorBlacksmith Group/P-PIC

[email protected]

Executive ChampionChad Zamarin

Chief Operating OfficerNiSource Midstream Services

[email protected]

FITNESS FOR SERVICE FOR PRE-REGULATION PIPE AND MAOP VALIDATION