October 11, 2012Annual Seminar New England Pipeline Safety RepresentativesGroton, CT

Randy KnepperDirector of Safety, NHPUC

Basic New Hampshire Stats No Interstate Operator nor Haz Liquid Operator

Certification with PHMSA (5 operators) 0 gathering lines 0 municipal gas operators 3 gas LDCs 5 Intrastate Transmission Operator (including

Landfill) 1 LNG Plant Operator (3 plants) 1 LP Plant Operator (3 plants) 2 Master Meter Operator

Key New Hampshire Stats

Propane Systems: 42 LP Operators Approx 800 jurisdictional LP systems

2 inspectors Well Established Underground Damage

Prevention System > 29 years Administered by Safety Division

Key New Hampshire Stats

Chet has retired

New Personnel in Safety Division

Added Joe Vercellotti – Pipeline inspector Added Bill Ruoff – Damage Prevention

Specialist Added Jason List – Utility Analyst

starts Oct 19

Merger & Acquisition Activity Status

National Grid was sold to Liberty Utilities (CAN)

NG announced looking to exit New Hampshire in 2010

Gas & Electric Divisions Settlement approved

through Commission Order

Safety Requirements were memorialized

Performance Metrics were attached

Newest Operators Paper Mill in Coos County was added and tapped

off an interstate pipeline with a new gate station.

Landfill Operator also added to feed the same Paper Mill

Seen an increase in single on site LNG systems in the State (non regulated)

Seen a consolidation of LP companies within the industry and effects are beginning to occur in NH as well.

NH Pipeline Safety Rule Update

Existing Rules every 10 years

Have met with Nat Gas Operators

Have met with LP Operators

Exchanged Information with Landfill Operators

Oct 19 Public Hearing on initial proposal

Expected to be completed January 2013

NH Pipeline Safety Rule Update

Uniform Leak Grading System Memorialized

Modified when emergency notifications need to occur

Prohibit new master meter systems Welding Qualification Intervals with

Destructive Tests are defined

NH Pipeline Safety Rule Update

Regulators on Risers and Meter Sets will be in alignment with NFPA 54 distances

Specified periods for system odor checks and locations

Construction Quality Assurance Plans are required

LPG Operators will be required to use an odorometer more measuring at the bulk tank storage with sniff tests during any maintenance activities

and more………

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New Publication sponsored byNAPSR & NARUC

ALSO Found at: http://www.naruc.org/committees.cfm?c=51#

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Found at http://www.napsr.org/napsr_current_issues.htm

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Compendium of State Safety Initiatives• Over 1,100 identified classified by 22 categories

• Range from simple modification of Federal Safety Rules to modest changes to full blown programs requiring replacement of aging and deteriorating pipeline infrastructure.  

• 23% Enhanced Reporting• 13% Design/Installation Requirements• 11% Leak Testing & Response to Leaks

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Compendium of State Safety Initiatives1  Enhanced Reporting 2  More Direct Oversight3  Valves4  Pressure Testing5  Operating Pressure6  Damage Prevention7  Training/Quals (not OQ)8  Operator Qualification9  Meter Location/Protection10 Odorant11 Leak Tests

12  Response to Leaks13  Replacement Programs14  Authority Beyond OPS 15  Extending LDC Responsibility16  External/Internal Corrosion17  Cathodic Protection18  Design/Install Requirements19  Risk‐based approaches20  Enhanced Record Keeping21  Inactive Services22  State Inspection Programs

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Compendium of State Safety Initiatives• Over 1,100 identified classified by 22 categories

• Range from simple modification of Federal Safety Rules to modest changes to full blown programs requiring replacement of aging and deteriorating pipeline infrastructure.  

• 23% Enhanced Reporting• 13% Design/Installation Requirements• 11% Leak Testing & Response to Leaks

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Compendium of State Safety Initiatives1  Enhanced Reporting 2  More Direct Oversight3  Valves4  Pressure Testing5  Operating Pressure6  Damage Prevention7  Training/Quals (not OQ)8  Operator Qualification9  Meter Location/Protection10 Odorant11 Leak Tests

12  Response to Leaks13  Replacement Programs14  Authority Beyond OPS 15  Extending LDC Responsibility16  External/Internal Corrosion17  Cathodic Protection18  Design/Install Requirements19  Risk‐based approaches20  Enhanced Record Keeping21  Inactive Services22  State Inspection Programs

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Cast Iron Bare Steel Accelerated Replacement Program

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2008-2012 Accelerated Cast Iron Bare Steel Replacement Program

National Grid Applies to internally driven projects not

externally driven 5th year of program Increased from $300 k/yr to $3 million/yr Customized program specific to NH Approximately 3 to 4 miles per year are removed

internally driven and 3 to 4 miles per year externally driven

Extensive review of all aspects of program by regulators

2008-2012 Nat Grid Accelerated Cast Iron Bare Steel Replacement

Program Starting point 135 miles CI, 17 miles BS in NH Replaced approximately 27 miles over last 4 years Bare Steel Services are replaced at rate of

approximately 250 per year. Existing Rate will take approximately 18 years to

complete

2008-2012 Nat Grid Accelerated Cast Iron Bare Steel Replacement

Program Regulator Involvement

Annual approval of prioritization list and amount to be replaced and line item costs per segment are submitted

Each bare steel section, catalogued, photographed and tested for remaining wall thickness and level of corrosion

Report Generated on all Bare Steel Sections Cut outs of Pipe Replaced are submitted to NHPUC Inspection priorities are centered around CIBS for constant field

monitoring. Extensive review of costs to remove items that are not related to

defined parameters Testimony at annual docketed hearing on cost recovery and

program impact

2008-2012 Nat Grid Accelerated Cast Iron Bare Steel Replacement

Program Program Benefits:

Worst Leak Prone Pipes are targeted based on

leak/main break history, material, age, Field Input

Approximately 250 Bare Steel Services per year are replaced that normally would not

More Meters are moved from inside to outdoors Proactive vs Reactive Mentality

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KeySpan Nat Grid Northern NH Gas

2008-2012 Unitil Accelerated Bare Steel Replacement Program

Northern Utilities (Unitil) Part of Settlement Agreement 28 miles of Bare Steel remaining Must all be removed within 5 years (2017) As much or as little per year as required No Special Rate Relief (Standard

Recovery)

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Corrosion Leaks All Leaks

Thank you for your efforts towards Pipeline

Safety • Zero Incidents is Achievable• Let’s all put Bob Hall out of Job