2014 Canadian Oil Sands Summit

Integrity Management of Pipelines:

Getting Product to Market Safety

Dennis Zadery, P.Eng.

Manager, Integrity Division February 2014

Design with community in mind

• Failure Root Cause

• IMP – Industry Culture

• Industry Activities

• Case Studies

• Summary

Overview

Root Cause

• Immediate cause is technical (metal loss, crack, dent etc)

• However, root cause is almost always linked to series of decisions (human factor)

• Integrity Management Program (aka PIMS)• Framework to Manage Risk – 16 Elements of

Annex N • Regulatory/Standards Change

• CSA Z662-11 Clause 3 - Safety and Loss Management (brand new section in 2011)

• CSA moved from design to life cycle (cradle to grave)

IMP Framework

Key Elements

• Org Chart – Roles and Responsibilities (N3)

• Training and Competency (N7)• Records Management (N5)• Hazards (N8) and Risk Assessment (N9)• Inspections (N12) and Evaluations (N13)

IMP Requirements • Recent Quebec project required IMP for

construction approval (regulatory requirement)

• Prepared IMP framework for 2 start-up pipeline companies since 2009 (no prior operating history or corporate standards)

• IMP now considered part of project management (from FEED to operations)

Industry Activities

IMP Industry Review• Third party review of pipeline regulatory

framework in 2012 (Alberta Pipeline Safety Review)

• Alberta most advanced regulatory regime in Canada

• Most of world is safety case or goal performance driven (UK, Australia, Norway)

• Canada/US are hybrid of goal vs prescriptive

IMP is now HSE (EHS)• Corporate Culture –Top Down• 15-20 years ago HSE became culture,

IMP following same path • Recent Third Party and regulatory

reviews confirm this culture is real (variety of company sizes)

• Detailed procedures and processes to make consistent IMP decisions (one company case for over 40,000 line segments)

IMP Key Performance Indicators

• Total reportable incidents per 1000/km (lagging)

• Leading - Proactive• Number of complete system assessments

done per year• Number of inspections done per year• Number of defects repaired per year

Career Development – Industry Knowledge Transfer• Integrity management is now a career

choice• U of C Two Year course - M Eng in Pipeline

Engineering• NACE - new courses and standards in last

5 years (Internal corrosion, coatings and CP, Direct Assessment Standards, Pipeline Inspection Course)

• Young Pipeliners Association (2nd year of existence)

Industry Collaboration• CEPA working groups (Integrity First) • Banff Pipeline Workshop (Every 2nd year

since late mid 1990’s)• NACE Events – 5000 - 6000 delegates at

National Conference every year , 500-600 at local conferences

• IPC – over 2000 delegates and 14+ technical tracks

Case Studies

Hazard Assessment During Design • Workshop Setting • SME’s • Documented Discussions and Results• Delineate whether construction,

commissioning or operations related

Hazard Mitigation

Engineering Studies – Scope of Work

Spill Consequence Modelling

Pre-Build HDD

IMP - Pre-Build HDD 1. Proper coating selection (Mill and Field

for Geotech Conditions) 2. Enhanced Welding Inspection (Phased

Array vs just RT) 3. Post Installation External Coating Quality

Test (Possible CP Upgrades if needed) 4. Post Installation Geometry Inspection 5. Post Installation Purge and Lay-up

(Possible Chemical Inhibition) 6. Interim CP Plan - Until Tied into Mainline

CP System

Summary • Pipeline Industry under intense scrutiny• Industry implementing lessons from past

failures • Integrity Planning is now part of

Project Planning• Following CSA lifecyle approach

effective IMP can minimize hazards and increase reliability (safety)

Next Steps - Areas to Focus On

• Continued training of contractors (ie. NACE Coating Applicator Course)

• Increased utilization of advanced technologies (automated welding, automated UT inspection)

• Improved mentoring and succession planning of senior specialists

Closing

• Improve your understanding that the industry is proactively solving these integrity issues

• These management programs are transferrable to other industries (oilsands plants, petrochemical plants, refineries)