PIPELINE INTEGRITY MANAGEMENT

Bob Vergette P.Eng.Lima February 28, 2008

Presentation Contents

Pipeline Integrity Management (PIM) Purpose Scope Why PIM? How Does PIM Work? Typical PIM Plan Contents PIM Reporting

Presentation Contents contd

ASME B31.8S Review DS 081-2007-EM Annex II review

Implementation Schedule Ongoing Management

Observations and Recommendations

PIM System Goal

To ensure protection of the public and the environment by continuously managing threats to pipeline integrity

Show operator compliance with Annex II of DS 081-07

Minimize operating risk to ensure Corporate goals a met

PIM Scope

Applies to all pipeline systems that transport natural gas and petroleum liquids

Pipeline system includes all parts of physical facilities through which gas and liquids are transported: Line pipe Valves Compressor, meter and delivery stations Liquid pump stations and tank farms

Why PIM?

Operators recognize serious potential consequences of pipeline operations

PIM enables operator to demonstrate to OSINERGMIN that pipeline and facilities are: suitable for initial commissioning safe and reliable for service years after they

have been put into service

How Does PIM Work?

PIM employs a systematic, integrated approach to manage the long term safety and integrity of pipeline systems

Through operating history, potential threats to safe and reliable pipeline operation are identified and mitigated

How Does PIM Work? contd

Management systems and programs form the foundation of integrity management records management condition monitoring data analysis mitigation programs developed in response to

hazards presented to the pipeline

Typical PIM Plan Contents

Introduction Purpose and objectives Corporate policy Governing regulations

Typical PIM Plan Contents

Organization, Responsibilities and Planning Budgets and resources Records Competency and training Change management Failure and Incident Investigation Communications and reporting Program Audits Organizational responsibilities

Typical PIM Plan Contents

Hazard Identification and Risk Mitigation Design and Construction O&M Risk Assessment

PIM Plan Reports

Integrity Management plan must be submitted for OSINERGMIN to review

Report on plan changes and progress to be submitted yearly

Change Management Continuous Improvement Internal plan audit results

PIM Related Reports

ROW Stability - Geotechnical River crossing depth of cover surveys ILI and anomaly investigation Corrosion Control Personnel Training Incident reporting and failure investigation Risk Management

ASME B31.8S-2004

Managing System Integrity of Gas Pipelines

ASME B31.8S

Scope Applies to onshore gas pipelines. Designed to provide Operators with

information to develop and implement an effective integrity management program.

ASME B31.8S

Integrity Management Principles Engineered into new pipeline systems Customized to meet unique pipeline conditions Program must be flexible Periodically evaluated and modified to meet

changes in operating environment

ASME B31.8S

Integrity Management Principles Contd Assessing risks is important Information integration key when performing

risk assessments Requires commitment from all operating staff

ASME B31.8S

IntegrityManagement

Plan

PerformancePlan

CommunicationPlan

ChangeManagement

Plan

Quality ControlControl

Plan

Integrity ManagementProgram Elements

ASME B31.8S

Integrity Management Plan includes: Description of risk analysis method Documentation of data for each section Analysis for determining assessment intervals

and mitigation methods Performance matrix that confirms performance

based options

ASME B31.8S

Performance Plan - Requires operator to: Collect performance information Periodically evaluate success of program Evaluate effectiveness of its management

systems and processes Evaluate new technologies for use in the

program

ASME B31.8S

Communications Plan Plan for effective communication with:

EmployeesThe publicEmergency respondersLocal officials Jurisdictional authorities

ASME B31.8S

Change Management Plan Pipeline systems and operating environment

seldom static. Plan includes a systematic process to ensure

that risks associated with: changes to the pipeline system are evaluated before

being implementedChanges to environment in which pipeline operates

are evaluated

ASME B31.8S

Quality Control Plan Includes documentation for integrity

management plan Allows operator to demonstrate that they meet

requirements of integrity management program Requires integrity program audit including:

Processes InspectionsMitigation activitiesPrevention activities

ASME B31.8S Integrity Management Plan Process Flow

Identify potential pipeline impact by threat Gather review and integrate data Assess risk Assess integrity

ASME B31.8S Integrity Management Plan Process Flow

Develop response to integrity assessment including:

Repair methodsPrevention practicesSetting inspection intervals

Update, integrate and review data Reassess risk

Decreto Supremo 081-2007-EMReglamento de Transporte de

Hidrocarburos por Ductos

DS 081-2007-EM Development

Previous edition DS 041-99-EM did not include specific requirements for pipeline integrity management plan

Regulators (US &Canada) started to require pipeline operators to have integrity plans

OSINERG started to prepare requirements with support from CIDA

DS 081-2007-EM

Establishes regulations and standards for the transportation of hydrocarbons by cross country pipelines

Regulation Includes provisions: To grant Concessions To establish Transportation Service Conditions To establish Transportation Rates To establish and safety regulations To establish environmental regulations

DS 081-2007-EM

Includes 4 Annexes I - safety provisions for design, construction,

operation and abandonment of pipelines II - new requirements for pipeline integrity

management III - scope diagrams from B31.4 &B31.8 IV - emergency procedures

DS 081-07 Gives OSINERGMIN

Authority to Supervise/Oversee: Compliance with the safety regulations for

design, construction, operation, maintenance and abandonment of the pipeline (Article 70 b)

Establishment and execution of pipeline integrity system (Article 70 e)

DS 081-07 Gives OSINERGMIN

Authority to Request Reports from the Operator: technical information in the form it requests

(Article 36 g) the information it requires for the compliance of

its functions (Article 37) The integrity system reports and documents

(Annex II Article 24)

DS 081-2007-EM

Annex II Pipeline Integrity System

ANNEX II Title I General

Requires the Concessionaire to develop and implement a pipeline integrity management system to prevent failures and thereby: ensure the safety of the public protect the environment.

The PIMS is risk based and applies to areas of high consequence.

ANNEX II Title II Scope

Operator must include: A physical description of pipeline function

capacity and location A description of its geography and zones of risk Who in their organization is responsible for all

aspects of the PIMS

Annex II Title III Administration

Requires the Operator to: Keep records on all aspects of the pipelines

design construction and operation Document procedures for the management of

records for the PIMS

Annex II Title III Admin. contd

Includes requirements for: Employee training and competence for

managing PIMS Procedures to manage changes that could affect

the integrity of the pipeline

Annex II Title IV

Management of the Pipeline Integrity System

Annex II Title IVPlans and Programs

Determination and revision of High Consequence areas

HAZOPS/mitigation Remediation of unsatisfactory conditions Procedures to inform DGH, OSINERGMIN Methods to plan and prioritize PIMS

activities

Annex II Title IVPlans and Programs contd

Plans and programs documented for OSINERGMIN review

Study of historical failure rates

Annex II Title IVPlans and Programs contd

Analysis of risks associated with defects in the pipe and their disposition

Methods to reduce risk of failure such as additional inspection and patrols

Annex II Title IV Patrols, Inspections, Tests and Monitoring

Document procedures for: Cathodic protection Internal corrosion/Corrosive agents Visual inspection of exposed pipe

Annex II Title IV Patrols, Inspections, Tests and Monitoring Document procedures for PIT&M for:

ROW patrolling SCADA system Procedures used to Repair defects

Annex II Title IV Internal Audits

To ensure continuing effectiveness Operator is required to document procedures for: PIM review PIM audit

Annex II Title V OSINERGMIN

OSINERGMIN is required to supervise the Operators PIMS

Supervision includes determining frequency of its inspections Requirements for reporting, testing and

documentation

Annex II Title VI High Consequence Areas Determined in several ways:

Class 3 or 4 locations are considered high consequence areas

Locations inside the Area of the Circle of Impact that has a specified number of occupied buildings

PIM Implementation Schedule

Operator to present OSINERGMIN PIMS implementation program by November 2008.

OSINERGMIN has 6 months after receipt to approve implementation plan

Annex II Ongoing Pipeline Integrity Management By actively managing threats to integrity, a

pipeline will remain in good condition for many years

Operators must take integrity matters seriously and aggressively manage risks

Observations and Recommendations Article 21 Annex I requires that high

consequence areas have a SCADA but SCADA must apply to the whole pipeline

Article 1 Annex II indicates that PIMS applies only to high consequence areas but should apply to entire pipeline

Article 94 defines the ROW as 12.5 meters on each side of center line of pipe making maintenance difficult

Observations and Recommendations Important to appreciate everyone's role

responsibilities Operator has the total responsibility for the

safety and integrity of their pipeline OSINERGMIN has the responsibility to

oversee and supervise the application of the regulations

Gracias

Espero hayan adquiridoconocimientos de mi

presentacin