annual liquids pipeline repor t 2018 - AOPL

ANNUAL LIQUIDS PIPELINE

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REPORT

2018

PIPELINE SAFETY EXCELLENCE PERFORMANCE REPORT

AMERICAN PETROLEUM INSTITUTE (API) is t h e only nat ional trade asso ciatio n th at re pre s e n ts a l l a s pe c ts o f Am e r ic a ’s oil a nd n atu ral gas in du stry.

A S S O C I AT I O N O F O I L P I P E L I N E S ( A O P L ) Re p re se nt s liquids pipelin e own ers an d o perato r s tra n s p o r ti n g c r u de o i l , p e t ro l e um produc ts like gasolin e,diesel jet f u e l , h o me h e ati n g o i l a n d i n d u str i a l p ro d u c t s like propan e an d eth an e.

2018 ANNUAL LIQUIDS PIPELINE REPORT


TA B L E O F C O N T E N T S

M E S S A G E FR O M T H E P IP E LINE S A FE T Y E X C E LLE NC E S T E E R ING C O M M IT T E E C H A I R.. . . . . . . . . . 4 2 0 1 7 P E R FO R M A NC E S UM M A RY. . . . . . . . . . . . . . . . . . . . . . . . . . 6 P IP E LINE S A FE T Y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 8 E NV IR O NM E NTA L P R OT E C T IO N. . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 P IP E LINE S B E NE FIT C O NS UM E R S & WO RKI N G A M E R ICA NS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 A S T R AT E G IC P LA N T O IM P R O V E P IP E LINE S A FE T Y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 1 8 G oal 1 : P r o m o te O r ga ni za ti o na l Ex c e l l e nc e.. . . . . . . . . . . . . . . . . . . . . 2 0 G oal 2 : I m pr o v e S a fe ty thr o ugh Te c hno l o g y a nd I nno v a ti o n.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 G oal 3 : Enha nc e Em e r ge nc y R e s po ns e P r e pa r e dn es s .. . . . . . . . 2 2 G oal 4 : I nc r e a s e S ta k e ho l de r Aw a r e ne s s & I nv o l v emen t.. . . . 2 4 2 0 1 7 P E R FO R M A NC E R E P O RT .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6


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TODD DENTON P R E S I D E N T, P H I L L I P S 6 6 PIPELINE LLC C h a i r, A P I - A O P L P i p e l i n e Safety Excellence Steering Committee

Pip e lin e s benefit cons um ers a nd wo rk i ng A m e ri ca ns . Our i ndust ry p rov id e s clean, s afe, afforda bl e e ne rgy a nd we he l p dri ve t he e con omy forward. We m ake o ur m o de rn way o f l i fe po ss i bl e.

4.



Whether we recognize it or not, pipelines provide us a way to get to our job, make a living, and care for our families. Sure, they provide the gasoline and diesel for our cars and trucks. But they also provide heating fuel for Americans in colder climates, jet fuel for our air travel, propane for farming and rural heating, and feedstocks that are the building blocks for the many things we use and often take for granted in our everyday lives: plastics, cars, clothing, carpets, cosmetics, and even pharmaceuticals. Pipelines and the energy they provide power America and improve our lives every day. Knowing h ow importan t pipelin es a re to eve r yd ay l i vi n g i s a b i g re a s o n why we a s pipe line operators strive to keep th e m s a fe. P i p e l i n e s th e ms e l ve s a re o n e o f th e sa fe st ways to tran spo rt en ergy wi th a b a r re l o f c r u d e o i l o r pe tro l e u m p ro d u c t re a c hing its destin atio n safely by p i pe l i n e 99. 999% o f th e ti me. We co n ti n u o u s l y wor k on th e safety o f o u r o peration s to pro te c t o u r pi p e l i n e s , o u r pe o pl e, com m unities an d o u r environ men t. Be hind t he scen es, pipelin e o perato r s a re re gu l a r l y i n s pe c ti n g th e i r pi p e l i n e s , conduc t in g preven tative main ten an ce, mo n i to r i n g th e i r s a fe o p e rati o n s 24/7 l o o k i n g for signs o f trou ble, an d practicin g h ow to ra p i d l y re s po n d to a p i p e l i n e e me rg e n cy if one were to o ccu r. Wh en yo u bo u gh t th at ga l l o n o f g a s o l i n e at th e ga s stati o n yo u we re pro bably th in kin g abo u t oth er th i n gs . Th at ’s o k , yo u ’ ve go t a bu sy l i fe to l e a d. We ’ re just glad to be able to sh are wi th yo u s o me o f th e ways we a re wo r k i n g to ke e p pipelin es safe. This sa fety repo rt gives you a win d ow i n to h ow we a s a pi p e l i n e i n d u str y a re wo r k i n g to m a ke ou r pipelin es even safer. It s h ows h ow we a re stre n gth e n i n g s a fe ty c u l tu re wit hin ou r o rgan ization s th ro u gh s a fe ty ma n a ge me n t syste ms , a n d p ro a c ti ve l y a pply ing tech n olo gy to h elp u s in s pe c t o u r p i p e l i n e s I t d e s c r i be s th e l ate st te c hniques o u r en gin eers u se to ma i n ta i n s a fe p i p e l i n e s , a n d h ow we a re p a r tn e r i n g wit h loc al f irst respon ders an d rea c h i n g o u t to key sta ke h o l de r s i n o u r co mmu n i ti e s . We love ou r jo bs an d improvin g Ame r i c a n s ’ l i ve s i n ma ny ways . D e l i ve r i n g e n e rg y t hat fue ls ou r co u n try, providin g jo b s th at d r i ve o u r e co n o my, ke e pi n g o u r e mpl oye e s sa fe, a nd protectin g th e environ me n t a re wh at mo ti vate s u s . We l o o k fo r wa rd to sha r ing more abo u t ou r ef fo rts.

S ince re ly,

TODD DENTON President , Phillips 66 Pipeline LLC Chair, A PI -AOPL Pipeline Safet y Excelle nce Steer ing Com m it tee


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2018

REPORT



PIPELINE SAFETY Eve n t h ou g h you m ay not see pip e l i ne s , t hey a re co nst a nt l y wo rk i ng on you r b e h al f. S im ilarly, pipeline o pe rato rs a re t he re be hi nd t he s cen e s con st a ntly working to keep t ho s e pi pe l i ne s o pe rat i ng s a fe l y.

8.



HI-TECH INSPECTIONS

PLANNING & PRACTICING EMERGENCY RESPONSE

P i p e line ope rators in spect th eir pipelin es o n re g u la r sc he dules with diagn o stic tools cal l e d

Wh i l e p i p e l i n e i n c i de n ts a re re l ati ve l y rare,

“sm ar t pigs” t hat travel in side pipelin es sca n n i n g

p i p e l i n e o p e rato r s sti l l tra i n re g u l a r l y w i t h t h ei r

t h e pipe wa lls. These h i- tech in spection to o l s c a n

fi r st re s po n d e r pa r tn e r s i n state s a n d l o cal

se e inside t he pipe like an u ltrasou n d or MRI at th e

co mmu n i ti e s to be re a dy fo r a p i p e l i n e i n ci d en t .

d o ctor ’s office. Smart pigs allow pipelin e o pe rato r s

P i p e l i n e o p e rato r s ma i n ta i n d e ta i l e d a c t i o n p l an s

to l ook proa c t ively fo r any poten tial issu es a pi p e

to k n ow i n a d va n ce wh o to co n ta c t i n cas e o f

m ay fa ce a nd sc hedu le preven tative main te n a n ce

a n e me rge n cy a n d h ave s u pp o r t p e r s o n n el an d

lo n g be fore a n issu e becomes a problem.

e qu i p me n t re a dy to ra pi d l y de pl oy to an i n ci d en t s i te. Re gu l a r dr i l l s a l l ow p i p e l i n e o p e rato r s to

For example, by using a smart pig a pipeline operator

p ra c ti ce de pl oyi n g th e i r e q u i p me n t a n d wo r k i n g

may detect a small amount of corrosion starting to

w i th l o c a l a u th o r i ti e s a n d g ove r n me n t of f i ci al s .

form on the outside of the pipe in a certain section.

To g e th e r p i p e l i n e o p e rato r s , s u pp o r ti n g res p o n s e

It may not pose a problem yet, but the operator can

p e r s o n n e l a n d fi r st re s po n d e r s w i l l ke e p any

schedule maintenance to keep the pipe in a safe

i n c i de n t, n o matte r th e s i ze, a n d g e t i t cl ean ed

condition. The pipeline operator can then reapply

u p a s fa st a s po ss i bl e to mi n i mi ze i mp act s to t h e

protective coating, install a patch or sleeve around

p u b l i c o r th e e nvi ro n me n t.

the pipe or replace that section of pipe.

24/7 PIPELINE MONITORING P i p e line ope rators keep a con stan t watch ove r t h eir pipe line s 24 h o u rs a day, 7 days a we e k , 365 d ays a ye a r. S pe cially train ed perso n n el in a ce n tra l co n t rol room m o n itor pipelin e pressu re, f low a n d vo lume. P ipe line operators can qu ickly sh u t d ow n a p i pe line if t hey su spect a leak. Pipelin e co n tro l p e rsonne l a re t rain ed to sh u t down th eir syste ms , d ia gnose whe t her an alarm is sh owin g a le a k , a n d n o t re st a r t t he pipelin e u n til th ey can deter mi n e t h e pipe line is safe.


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2018

REPORT



E N V I R O N M E N TA L

PROTECTION Eve r y st ag e of a pipeline’s design, co nst ruc t i o n a nd o pe rat i o n a l l ows p i p elin e s to operate safely within t he i r e nvi ro nm e nt . The i m pa c t s o f p i p elin e s on t he environm ent are ke pt to a m i ni m um w i t h pro a c t i ve in s p ect ion s, p reventative m aintena nce a nd 24/7 m o ni to ri ng. Whi l e ou r mot to is always “keep it in th e pi pe,” pi pe l i ne o pe rato rs a l s o pl a n, p rep are an d p ractice for any em e rge ncy re s po ns e.

10.



PIPELINE PLANNING AND E N V I R O N M E N TA L R E V I E W

PROACTIVE INSPECTIONS, PREVENTIVE MAINTENANCE AND 24/7 MONITORING

D u r ing t he pla nnin g for a n ew pipelin e, pro j e c t

P i pe l i n e o p e rato r s i n s pe c t th e i r pi p e l i nes o n

sp o n sor s ma p out po ten tial ro u tes to avo i d

re g u l a r s c h e d u l e s l o o k i n g fo r i ss u e s th ey can f i x

e nv i ronme nt a lly sen sitive areas. Operato rs w i l l

be fo re th ey b e co me a pro b l e m. Th i s strateg y o f

a lso t r y to follow ex istin g pipelin e or power l i n e

pro a c ti ve i n s pe c ti o n s a n d p reve n ti ve m ai n ten an ce

ro u te s to minimize n ew enviro n men tal imp a c ts .

ke e ps th e p i p e l i n e s s a fe. Op e rato r s k n ow t h ei r pi p e l i n e s a re o pe rati n g s a fe l y th ro u g h 24/7

As p a r t of t he plan n in g pro cess, a majo r p i p e l i n e

mo n i to r i n g fro m a ce n tra l co n tro l ro o m . I f an i ss u e

p ro j e c t m ust inc l u de a detailed stu dy of its

i s d e te c te d , p i p e l i n e co n tro l p e r s o n n e l are t rai n ed

e nv i ronme nt a l impacts. Th e poten tial impac t o f a

to s h u t dow n th e pi p e l i n e, di a gn o s e w h et h er

p ip e line on nat ural resou rces, wildlife, h ab i tat a n d

a n a l a r m i s s h ow i n g a l e a k , a n d n o t re st ar t t h e

c u l t ura l re sources are all con sidered. For exa mp l e,

pi p e l i n e u n ti l th ey c a n d e te r mi n e th e pi p el i n e i s

p ip e line pla nne r s avo id impactin g rivers or l a ke s

o pe rati n g s a fe l y.

by b ur rowing de ep u n dergro u n d below ma j o r wate r bodie s a llowin g th e pipelin e to n ever me e t t h e wate r it se lf.

EMERGENCY RESPONSE P i pe l i n e o p e rato r s l i mi t th e i mpa c t to t h e

PIPELINE CONSTRUCTION

e nvi ro n me n t i f a re l e a s e d o e s o cc u r wi t h rap i d re s po n s e, tra i n e d p e r s o n n e l a n d s pe c i al i zed

P i p e line -gra de steel requ ired for pipelin e pro j e c ts

e q u i p me n t. Op e rato r s h ave exte n s i ve e m erg en cy

m u st me e t or exceed federal qu ality regu lati o n s .

re s po n s e p l a n s a pp rove d by th e fe de ra l

A p rote c t ive coatin g is applied on th e pipe to

gove r n me n t a n d s h a re d w i th l o c a l a u tho r i t i es .

p reve nt cor rosion . Af ter pipe segmen ts, u s u a l l y

P i pe l i n e o p e rato r s re gu l a r l y tra i n th e i r em p l oyees

4 0 fe e t in le ngt h, are welded togeth er en d to e n d ,

a n d p ra c ti ce th e i r re s p o n s e p l a n s to be read y fo r

t h e we lds a re ins pected to en su re th e stre n gth o f

a p i p e l i n e i n c i de n t. P i pe l i n e o p e rato r s k n ow i n

t h e we lds. New pipelin es can begin service o n l y

a d va n ce wh o to co n ta c t i n c a s e o f a n em erg en cy

a fter t hey pa ss r igo rou s pre- o peration testi n g

a n d h ave s u pp o r t p e r s o n n e l a n d e qu i p m en t p re-

d e monst rat ing t h ey are pro blem f ree an d re a dy

i de n ti fi e d to de pl oy to a n i n c i d e n t s i te.

fo r s a fe ope rat io n s.


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2018

REPORT



PIPELINES BENEFIT CONSUMERS & WORKING AMERICANS FUELS & CONSUMER GOODS

12.



GASOLINE AND DIESEL FOR OUR CARS AND TRUCKS

P R O PA N E F O R F A R M I N G A N D R U R A L H E AT I N G H o me s a c ro ss r u ra l A me r i c a a re o fte n to o s p read

Eve r wonde r a s you are pu mpin g gaso lin e i n to yo u r

o u t o r fa r away fro m tow n s to b e co n n e cted to

c ar at t he ga s st ation h ow th at f u el came to yo u ?

c i ty ga s l i n e s fo r th e i r h e at, co o k i n g a nd h o t

P i p e line s a re t he con n ection - tran spo rtin g c r u d e

wate r n e e ds . A s s u c h , fa r me r s a n d r u ral A m er i ca

o i l to re fine r ie s an d deliverin g gasolin e to yo u r

de pe n d o n p ro p a n e d e l i ve re d to th e i r l o cal areas

re g i on. The re sult of th is lon g ch ain o f pip e l i n e s

by pi p e l i n e. A tr u c k may trave l th e l a st few m i l es

is t hat you be ne fit by h avin g plen tif u l, af fo rd a bl e

to fi l l th e ta n k , bu t l a rge vo l u me s o f pro p an e to

t ranspor t at ion fu els fo r you r car o r tru ck.

me e t r u ra l n e e d s mu st be tra n s po r te d by p i p el i n e. Fa r m e r s a l s o u s e p ro p a n e to d r y t h e i r g ra i n a f te r h a r ve s t , re d u c i n g c ro p l o s s , a d d i n g h a r ve s t

H O M E H E AT I N G F U E L

f l ex i b i l i t y a n d i m p rov i n g y i e l d s t h ro u g h e a r l i e r h a r ve s t . L i ve s to c k o p e ra t i o n s u s e p ro p a n e to h e a t

M i llions of Am e r i can s in colder climates dep e n d o n

b a r n s a n d ke e p l i ve s to c k wa r m t h ro u g h o u t t h e

p ip e line s to ke e p th eir h o mes warm in th e w i n te r.

w i n te r.

H o me he at ing oil, u ltra- low su lf u r diesel an d p ro p a ne a re de livered by pipelin e in large vo l u me s to re giona l storage po in ts, th en by tru ck to yo u r h o u s e or a pa r t m en t bu ildin g. With ou t pipel i n e s ,

CONSUMER GOODS MADE FROM PIPELINE DELIVERED FEEDSTOCKS

yo u wouldn’ t be able to get en ou gh h eating fu e l d e l ive re d to your regio n to keep you warm.

A me r i c a n co n s u me r s u s e p ro d u c ts ma d e f ro m pi p e l i n e -d e l i ve re d fe e d sto c k s . B eve ra g e co n t ai n er s , c l o th i n g , c a r p e t, co s me ti c s a n d p h a r ma ceu t i cal s al l

JET FUEL FOR AIR TRAVEL

a re ma d e wi th raw mate r i a l fe e dsto c k s d el i vered at s o me p o i n t by pi p e l i n e. U. S . wo r ke r s d r i l l wel l s

Air pla ne s t a ke you o n yo u r vacatio n , to vis i t fa mi l y

a n d s e n d p e tro l e u m p ro d u c ts to pi p e l i nes , p ro cess

o r o n a busine ss trip, an d th e jet f u el for t h at pl a n e

raw mate r i a l s i n to u s a b l e fe e d-sto c k s , p ro cess

t rave le d to your local airport by an u n derg ro u n d

fe e d-sto c k s i n to b a s e fi b e r s , re s i n s , a n d m ater i al s ,

p ip e line. Just like gaso lin e for th e car yo u dr i ve,

a n d ma n u fa c tu re fi n a l p ro d u c ts a n d p a c kag i n g .

je t f ue l for t he a i rplan e you ride is delivere d fro m

P i pe l i n e s a l s o de l i ve r n atu ra l ga s l i q u i d s f ro m

re fi ne r ie s to your lo cal airpo rt by pipelin e.

we l l s i n e a ste r n Oh i o, we ste r n Pe n n syl van i a, Texas a n d o th e r l o c ati o n s i n th e U. S fo r e th a n e to m ake pl a sti c s , pro p a n e fo r g a s b a r be qu e s a nd cam p i n g stove s a n d p e n ta n e to ma ke styro fo a m.


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REPORT



JOBS AND COMMUNITY BENEFITS

14.


PIPELINE CONSTRUCTION SPURS JOBS B u i lding new pipelin es mean s th o u san ds o f g o o d-paying jobs th at gen erate billio n s o f do l l a r s in wor ke r incom e. A majo r pipelin e con stru c ti o n p ro j e c t c a n dire ctly employ th o u san ds o f t rade sme n, te a msters, tech n ician s an d en g i n e e r s . P i p e line const r uction will also su ppo rt th e j o b s o f tens of t housan ds mo re American s wh o s e j o bs fu r nish t he good s an d services n eeded for th e p ro j e c t , it s wor kers an d th eir person al spen di n g . G o od jobs support co mmu n ities with wage s th at a re spe nt on homes, at lo cal restau ran ts, ca r d e ale r ships a nd sh o ps addin g to th e overa l l h e alt h of a st ate ’s eco n o my.

COMMUNITY BENEFITS CONTINUE AFTER PIPELINE CONSTRUCTION After const r uc t ion , a major pipelin e projec t w i l l p rovide te ns of millio n s o f dollars in pro per ty t axe s e a c h ye a r. Lo cal co mmu n ities can u s e t h ese reve nue s to f u n d in creases to f ire and p o l ice de pa r t me n ts, teach ers an d sch o o ls a n d g over nm e nt ope ration s.



A STRATEGIC PLAN TO IMPROVE PIPELINE SAFETY I nd ust r y ’s comm itm ent to long-term s a fe t y i ncl ude s t he fo l l ow i ng s h a red p ip e line s afety principles :

ZERO INCIDENTS–

On ly with a go al o f zero

sa fet y inc ide nt s c an acciden ts be min imized .

LEARN FROM EXPERIENCE–

P i pe l i n e o p erato r s

l e a r n h ow th ey c a n i mprove s a fe ty fro m t h ei r own exp e r i e n ce s a n d fro m o th e r pi p e l i n e o p erato r s .

O R G A N I Z AT I O N - W I D E C O M M I T M E N T – S afet y is e mpha sized at every level o f th e

SYSTEMS FOR SUCCESS–

o rg a n izat ion from employees wh o accept per s o n a l

syste ms br i n g a co n s i ste n t, h o l i sti c str u c t u re to

re s p o nsibilit y for s afety to man agers wh o are vi ta l

s a fe ty ma n a g e me n t, h e l pi n g to i mprove s afet y

to re i nforc ing a safety cu ltu re.

p e r fo r ma n ce.

A C U LT U R E O F S A F E T Y –

A wo rkplace cul tu re

w h ere sa fe t y is a n en du rin g valu e th at all e m p loye e s sha re.

CONTINUOUS IMPROVEMENT–

EMPLOY TECHNOLOGY–

S a fe ty man ag em en t

Fro m “s ma r t p i g s ”

to i n n ovati ve ways to i n te r pre t i n te gr i ty d at a, o pe rato r s co n sta n tl y d eve l o p n ew ways to ad van ce

Pipelin e

o p erator s be lieve th at n o matter h ow safe th ey a lre ady a re, t hey can always improve safety.

pi p e l i n e s a fe ty.

C O M M U N I CAT E W I T H S TA K E H O L D E R S – Operators know communicating and establishing a positive relationship with the public and stakeholders w h o va l u e s a fe ty i s vi ta l to i mprovi n g s a fet y.

16.



P i p e line sa fe t y to u s is more th an ju st n u mb e r s

I n 2 017, th e l i qu i d p i p e l i n e i n d u str y i n tro d u ced

a n d pe r for m a nce metrics, it ’s abou t o perati n g

a th re e -ye a r strate g i c pl a n th at re fl e c te d t h e

sa fely wit hin commu n ities. Pipelin e o perato r s fo c u s

g o a l s a n d o b j e c ti ve s o f ove r 5 0 p i p e l i ne m em b er

t h eir sa fe t y im provemen t ef forts o n wh ere th ey wi l l

co mp a n i e s wi th i n A P I a n d AOP L. Th e p i p el i n e

h ave t he gre ate st ef fect in redu cin g impacts o n th e

i n d u str y ma d e co n s i d e ra b l e pro g re ss toward s

p e o ple or t he e nviron men t. Takin g th at strate g i c

i mp rovi n g p i p e l i n e s a fe ty th ro u g h e a c h o f o u r

a p p roa c h to pipelin e safety also allows u s to

fo u r g o a l s i n 2 017 : (1) Orga n i z ati o n a l Excel l en ce

a d d re ss pe r siste nt pro blems, h alt growin g tre n ds

(2 ) Te c h n o l o g y a n d I n n ovati o n (3) E me rg en cy

o r b r ing new levels o f su ccess to previo u s s a fe ty

Re s po n s e P re pa re d n e ss a n d (4) Sta ke ho l d er

a ccom plishme nt s.

Awa re n e ss a n d I nvo l ve me n t. P i p e l i n e o p erato r s d eve l o pe d we l l -de fi n e d p e r fo r ma n ce m eas u res

Th at doe sn’ t me an n u mbers aren ’t impo rtan t. Late r

a n d a qu a r te r l y revi ew pro ce ss to a ss e ss i n d u st r y

in t his re por t a re in du stry-wide metrics ba s e d

p e r fo r ma n ce, i d e n ti fy e me rgi n g tre n ds , an d en s u re

o n dat a colle c te d by th e federal govern me n t o n

th at pi p e l i n e o p e rato r s a re fo c u s i n g th ei r at ten t i o n

h ow t he pipe line in du stry is doin g, wh ere we

w h e re th ey w i l l h ave th e gre ate st p o s i t i ve i m p act

a re improving ou r pipelin e safety reco rd a n d

o n p i p e l i n e s a fe ty. I n 2 018, p i p e l i n e o p erato r s w i l l

w h ere we c a n do better. Trackin g progress a n d

co n ti n u e to tra c k th e i r pe r fo r ma n ce th ro u g h a

e m e rging t re nds are critical to o u r core va l u e o f

va r i e ty o f pe r fo r ma n ce i n di c ato r s .

co n t inuous im provemen t. We also strive to l e a r n fro m expe r ie nce. Ou r strategic plan ben ef i ts fro m le ssons le a r ne d f ro m past pipelin e in ciden ts a n d re comm e ndat ion s made to u s f ro m o u r gove r n me n t a g e n cy re gulators. Th roughout t his report yo u will see descrip ti o n s o f our e ffor t s to improve pipelin e safety an d m ea sure s of our progress. We wan t to ex pa n d a cult ure of ope ratin g ou r pipelin es safely, h a r ne ssing c ut t in g edge tech n o logy an d u s i n g t h e late st ma na g emen t tech n iqu es to h elp o u r com pa nie s improve th eir pipelin e safety p e rfor ma nce. We also wan t to co mmu n icate wi th o u r st a ke holde r s , h ave conversatio n s o n w h at i s wo rking a nd what is n o t, an d make su re we a re fo c u sing our e ffo rts wh ere th ey will do th e mo st to re d u ce im pa c t s to th e people o r th e enviro n me n t.


.17

2018

REPORT



STRATEGIC PLAN 2017–2019

I n 201 8, t h e industry continues to fo c us o n t he fo l l ow i ng go a l s i n i t s p us h toward zero pipeline incident s

18.



GOALS P R O M OT E O R G A N I Z AT I O N A L EXCELLENCE

IMPROVE SAFETY THROUGH TECHNOLOGY A N D I N N O VAT I O N

Under Goal 1, industry will develop and promote an industry-wide safety culture through

Th ro u g h G o a l 2 , A P I a n d AOP L wi l l d r i ve

continuous improvement mechanisms, such as

i n d u str y-wi de e n g a ge me n t i n a dva n ci n g

Pipeline Safety Management Systems (Pipeline

I n l i n e I n s p e c ti o n (I LI ) c a p a bi l i ti e s

SMS), Construction Quality Management

to a c h i eve th e pi p e l i n e i n d u str y’s

Systems (QMS) and Integrity Management (IM).

g o a l o f ze ro i n c i de n ts , a cce l e rate t h e

By implementing these programs, industry-

d eve l o pme n t a n d a do p ti o n o f th e m o st

wide sharing will be transformed into a robust

e ffe c ti ve I LI to o l s a n d c re ate s u stai n ab l e,

sustainable program that emphasizes the

wo r ka b l e fra mewo r k s fo r o pe rato r l eak

benefits and power of data integration.

d e te c ti o n ma n a g e me n t.

ENHANCE EMERGENCY R E S P O N S E P R E PA R E D N E S S

3

4

I N C R E A S E S TA K E H O L D E R A W A R E N E S S & I N V O LV E M E N T

By im ple m e n tin g G oal 3, in du stry will

Un de r G o a l 4 i n d u str y wi l l s h a re w i t h

inc re a se ra pid an d ef fective emergen cy

th e pu b l i c h ow we a re ke e p i n g p i p el i n es

re sponse e ffo rts th ro u gh th e develo pm e n t

s a fe, h ow th e pu b l i c c a n i n te ra c t w i t h

a nd a dopt io n o f in du stry gu idan ce o n

p i p e l i n e s s a fe l y wh e n th ey n e e d to,

a da pt ive e mergen cy plan n in g an d respo n s e

a n d h ow we wi l l i n te ra c t wi th pr i vate

proce sse s. Su ch ef forts will pro mote p e e r

l a n dow n e r s w h e n a p i p e l i n e p ro j e c t

to pe e r opportu n ities for drillin g/exerc i s i n g

i s i n th e i r a re a . We w i l l a l s o fo c u s

e me rge ncy respon se plan s an d sh arin g o f

s pe c i fi c a l l y o n th o s e w h o n e e d to d i g

le ssons le a r ned f rom in ciden ts.

a ro u n d u n d e rgro u n d p i p e l i n e s to m ake s u re eve r yth i n g i s do n e s a fe l y.


.19


P romo te Organ ization al Exce l l e nce Objective 1.1

Expand Safety Management Practices S T R AT E G I C I N I T I AT I V E : PIPELINE SAFETY MANAGEMENT SYSTEMS

GOAL

1

A key aspect of API RP 1177 is the focus on continuous improvement, through the use of the

In 2017, the Pipeline SMS Industry Team (Team) issued

“plan-do-check-act” cycle, foundational to API RP

the first Pipeline SMS annual report describing the

1173. API will develop tools to implement API RP

benefits and achievements of industry-wide efforts

1177 across the industry through factsheets and

to implement pipeline safety management

outreach materials. Through the adoption and use of

systems. The Team has continued developing

API RP 1177, pipeline operators intend to significantly

tools for companies to assess how well they are

decrease the number of construction related anomalies

implementing the industry-wide, API RP 1173 Pipeline

and improve new operations safety performance.

Safety Management Systems and how effective the company’s new program is at improving pipeline safety performance. To measure progress, the Team

S T R AT E G I C I N I T I AT I V E : PIPELINE INTEGRITY MANAGEMENT

developed a five-level maturity model with tools for assessing gaps in company programs and evaluating

Integrity Management (IM) is a pipeline operator’s

company efforts in detail. The Team will complete

first line of defense - a risk-based approach where

and introduce the planning and implementation tools

operators utilize innovative inspection technologies,

to pipeline operators through a series of webinars

state of the art data integration and best practices to

and workshops in 2018. API is also developing a

evaluate the integrity of their pipelines. API RP 1160,

third-party assessment program, which will include

Managing System Integrity for Hazardous Liquids

assessment protocols and timelines, and inspector

Pipelines , provides pipeline operators technical

qualifications, etc.

engineering guidance for assessing pipeline risk, using in-line or “smart-pig” inspections, criteria for

S T R AT E G I C I N I T I AT I V E : CONSTRUCTION QUALITY MANAGEMENT SYSTEMS

performing repairs, analytic models for assessing pipe issues, and guidance for how frequently to re-inspect pipelines. In 2017, API continued its update of API RP 1160 with significant changes incorporating the “plan-

In 2017, the pipeline industry completed the

do-check-act” cycle of pipeline safety management

publication of API RP 1177, Construction Quality

systems (API RP 1173), along with references to new

Management Systems (QMS) . This document

industry-wide recommendations on crack detection

systematically guides operators in the management

and management (API RP 1176) and data integration

of the overall pipeline construction process, including

(API Bulleting 1178). In 2018, the pipeline industry

initial design verification, materials manufacturing,

will develop a “road map” to support industry-

construction, inspection, testing and initiation of

wide understanding and implementation of these

operations.

recommendations.

20.



Pro mo te Organ izationa l Exce l l e nce Objective 1.2

Promote Best Sharing Practices S T R AT E G I C I N I T I AT I V E : SHARING & LEARNING

(P I X). Th e 2 017 P I X h a d ove r 10 0 + atte n d ees w h o a c ti ve l y e n g a ge d i n a wi de ra n g e of p i p el i n e

P i p e line ope rators h ave a lon g h isto ry of s h a r i n g

a n d fa c i l i ty-re l ate d s a fe ty to pi c s . A P I h o sted

sa fet y le ssons a n d learn in gs, wh ich is also

two vi r tu a l ta i l gate s i n 2 017 d i s c u ss i n g to p i cs

fa c i lit ate d t hrough API an d AOPL. In 2017, th e

l i ke e me rge n cy re s po n s e, exc avati o n dam ag e,

in d ust r y cont inued to promo te an d su ppo r t th e

a n d wate r c ro ss i n g s . S h a r i n g c a p a bi l i ti es were

u se of e st a blished in du stry learn in g o ppo r tu n i ti e s

a l s o exp a n de d i n 2 017, w i th a l e r ts to s ub s cr i b er s

t h rough v ir t ua l tailgate meetin gs, safety c u l tu re

h i g h l i g h ti n g i n fo r mati o n u pl o a de d to the P I P ES

fo r ums a nd t he Pipelin e In formation eXch an ge

s a fe ty s h a r i n g d ata b a s e a n d ava i l a bl e fo r s h ar i n g .

Pro mo te Organ izationa l Exce l l e nce Objective 1.3

Improve Pipeline Integrity Through Technical Data Analysis S T R AT E G I C I N I T I AT I V E : DATA I N T E G R AT I O N

API will also include the data integration guidance in its update of API RP 1160 for integrity

In 2017, API published API Bulletin 1178 – Integrity

management programs, which will guide pipeline

Data Management and Integration Guideline along

operators on the procedures needed to identify

with an explanatory factsheet. The document

integrity management data for risk analysis and

provides a compilation of methodologies and

the collection of integrity management data from

processes for integrating data that support integrity

across the organization.

management programs.


.21


I m p rove Safet y th rou gh Te chnol ogy and Innovat ion Objective 2.1

Improve Pipeline Integrity Inspection Technology

GOAL

2

S T R AT E G I C I N I T I AT I V E : CONTINUOUS IMPROVEMENT OF ILI CA PA B I L I T I E S Pipeline operators also started an initiative to In 2017, industry sponsored an initiative to work

enhance the performance of in-the-ditch Non-

with ILI vendors to develop a roadmap for the

Destructive-Examination (NDE) of anomalies,

next generation of ILI technology to achieve 100%

which will likely include updates to existing

probability of detection, identification and sizing

API certification testing of NDE technicians

of injurious pipeline anomalies. 2017 activities

with anomalies seen on pipelines and midstream

included industry-led visits and meetings with

facilities. This effort will contribute to the

respective ILI vendors to review specific anomalies

improvement of ILI technology by providing

that were not detected by existing ILI technology

reliable identification and sizing data from the NDE

with the goal of developing technology that will

technicians to the ILI vendors to check and adjust

identify these features in the future.

their process for the respective technologies.

I m p rove Safet y th rou gh Te chnol ogy a nd I nnovat i o n Objective 2.2

Enhance Incident Identification and Response S T R AT E G I C I N I T I AT I V E : LEAK DETECTION AND RESPONSE MANAGEMENT In 2017, pipeline operators continued to emphasize

The team also provided guidance on how to

the importance of API RP 1175, Leak Detection

implement successful leak detection programs

Program (LDP) Management . An implementation

through completion of a gap assessment and

team pushed the importance of comprehensive

development of tools. API RP 1175 provides

leak detection program management through an

the framework for operators to establish

industry-wide webinar and workshop aimed at

comprehensive leak detection programs in

increasing operator adoption of the RP.

their respective companies.

22.



E n ha nce Em ergen cy Re s pons e Prep a re dn ess

GOAL

Objective 3.1

3

Boost Operator & First Responder Planning, Preparedness & Response Capabilities

S T R AT E G I C I N I T I AT I V E : PIPELINE EMERGENCY PLANNING, P R E PA R E D N E S S A N D R E S P O N S E

I n 2 017, o p e rato r s fo c u s e d th e i r e ffo r ts o n a co mmu n i c ati o n s c a mpa i gn to th e h a z a rd o u s l i q u i d i n d u str y o n A P I RP 1174 to h e i gh te n awaren ess

The pipeline industry is committed to ensuring

a n d i n c re a s e i mpl e me n tati o n . Th e co mm u n i cat i o n

effective and efficient emergency response efforts

strate gy i n c l u d e d i n te g rati n g A P I RP 1174 w i t h

in the event of an incident or spill. Through

P i p e l i n e S M S . A d e di c ate d e me rg e n cy res p o n s e

API Recommended Practice (RP) 1174, Onshore

p a ge wa s c re ate d o n P i p e l i n e S M S .o rg w i t h to o l s

Hazardous Liquid Pipeline Emergency Preparedness

to h e l p o p e rato r s a do p t A P I RP 1174. I n 2 01 8 , A P I

& Response , operators utilize a framework to

a n d AOP L be ga n tra c k i n g o p e rato r co nfo r m an ce

develop such a comprehensive emergency response

w i th A P I RP 1174. A s o f J a n u a r y 2 018, 52 % o f A P I

plan that enables continual improvement and

a n d AOP L me mb e r s h i p (i n b a r re l mi l e s) co m m i t ted

promotes safe, timely, and effective response to

to i mpl e me n tati o n . G o i n g fo r wa rd , o p e rato r s w i l l

incidents. The framework includes six fundamental

re po r t th e i r pro g re ss a n d co n fo r ma n ce to A P I R P

steps: 1. Statements of the system’s policies and

1174 o n a ye a r l y b a s i s th ro u gh a ga p a ss ess m en t

objectives 2. Documented procedures 3. Documents,

to o l to b e pu b l i s h e d o n P i p e l i n e S M S .o rg . A P I an d

records, and job aids 4. Identification of legal and

AOP L wi l l co n ti n u e to pu s h fo r a d o p ti o n o f A P I R P

other applicable emergency response requirements

1174 wh i c h w i l l h e l p to a l i g n i n d u str y, g over n m en t ,

5. Processes intended to ensure continuity and

a n d e me rg e n cy re s po n s e o rg a n i z ati o n s o n ef fect i ve

promote system improvement 6. Measure goals

a n d s a fe e me rge n cy re s po n s e.

and objectives.


.23


I n crea s e St akeh older Awa re ne ss & I nvo l vem en t Objective 4.1

GOAL

4

Improve Stakeholder Communication on Energy Infrastructure and Pipeline Safety S T R AT E G I C I N I T I AT I V E : S TA K E H O L D E R E N G A G E M E N T

Additional video and digital content is under development in 2018. New videos will demonstrate how pipeline operators keep their pipelines

In 2017, the pipeline industry developed and

operating safely and protect the environment. Video

shared content describing how we operate our

production will share the stories of how pipeline

pipelines and keep them safe. State specific

operators responded to Hurricane Harvey, prepare

materials in the series “Pipelines: Bringing It All

for emergencies in challenging conditions, use

Within Reach” highlighted why new pipelines are

technology to inspect pipelines, demonstrate a

essential and what operators do to protect the

commitment to environmental stewardship, support

communities pipelines pass through. A new web

veterans job security, and are good neighbors and

platform “Pipelines: Connecting America to Energy”

good corporate citizens. A study of the economic

provides a hub for materials on how pipelines stay

benefits of pipelines will help operators better

safe, provide good jobs, consumer benefits and

understand how and why selected audiences use

community benefits.

energy delivered by pipelines.

API’s “Power Past Impossible” campaign continued

Pipeline operators are also meeting their

throughout the year, making the connection on the

commitments under federal regulation to develop

value of oil and natural gas to people at a personal

and implement programs to increase public

level – reinforcing that these products make modern

awareness of pipelines in local communities.

life, and beyond, possible. The campaign is also

Work is underway to update the industry-wide

repositioning the industry, including pipelines,

standard, API RP 1162, Public Awareness Programs

in the public’s eye as high-tech and innovative.

for Pipeline Operators . In 2018, pipeline operators

Specifically, liquid pipeline benefits and use of

will work together with representatives of the

technology in pipeline construction videos were

public to improve how operators must educate the

completed in targeted states. These overarching

public about pipeline locations, risks and hazards,

messages help support pipeline communications

damage prevention and emergency response.

efforts in building a foundation for advancing

A theme for 2018 is developing ways to measure

the conversation on America’s future energy and

the effectiveness of public awareness programs and

infrastructure needs.

to help all stakeholders involved better understand “behavioral change” and communications.

24.



Inc re a s e Stakeh older Awa re ne ss & I nvol ve m e nt Objective 4.2

Promote Innovative Approaches to Enhancing Damage Prevention S T R AT E G I C I N I T I AT I V E : E X CA VAT I O N DA M A G E The unintentional striking of a pipeline by digging

In 2018, operators will work together to better

or excavating near a pipeline is an avoidable

understand how to minimize damage from company

incident. Pipeline operators work not only to

and contractor excavations and develop a plan

prevent damage to their pipelines, but more

to address these 1st and 2nd party excavation

importantly prevent harm to those accidentally

damage sources. Industry will also harvest

striking a pipeline. One main tool to assist pipeline

the results of their Public Awareness Program

operators is the industry Excavation Tool Box with

Effectiveness Research Survey (PAPERS) conducted

lessons learned and strategies for avoiding pipeline

every two years to measure the effectiveness

strikes. In 2017, the pipeline operators developed a

of communications with local public officials,

new toolbox section on Excavation Job Planning.

excavators and the public.


.25

2018

REPORT



2017 PERFORMANCE REPORT

26.



K E Y P E R F O R M A N C E I N D I CAT O R S Pipelin e o perato rs an d P H M SA co l l e c t h u n dre ds o f d i ffe re n t data p o i n ts measu rin g h ow safely pi p e l i n e s a re o pe rati n g a n d th e re a s o n s be h i n d pipelin e in ciden ts wh e n th ey o cc u r. Pa r ti c u l a r l y u s e fu l me a s u re s o f pipelin e safety examin e i n c i d e n t s i ze, l o c ati o n , co mmo di ty a n d c a u s e. Each on e o f th e followi n g me a s u re s i s u s e d by th e l i q u i d s pi p e l i n e in du stry to better u n d e r sta n d p i p e l i n e i n c i de n t tre n d s a n d d eve l o p strategies fo r improvin g p i p e l i n e s a fe ty. H oweve r, th e l i q u i d s pi p e l i n e in du stry also tracks a co re s e t o f Key Pe r fo r ma n ce I n d i c ato r s (K P I s) as a sign of overall pipe l i n e s a fe ty p e r fo r ma n ce. Th e s e K P I s a re ba s e d primarily on in ciden ts i mpa c ti n g p e o pl e o r th e e nvi ro n me n t (I P E ). Th ey are n ewly created meas u re s i n tro du ce d i n 2 017 fo l l ow i n g a co l l a b o rati ve ef fort between PHM SA , pu b l i c pi p e l i n e s a fe ty a dvo c ate s re pre s e n te d by th e Pipelin e Safety Tru st a n d th e l i qu i d s pi p e l i n e i n d u str y. Th ey re fl e c t th e h igh est priority we p l a ce o n p ro te c ti n g p e o pl e o r th e e nvi ro n me n t. Th e fo u r i n d u st r y-w i d e K P I s a re 1 ) To t a l I n c i d e n t s I m p a c t i n g P e o p l e o r t h e E nv i ro n m e n t ; 2 ) I P E I n c i d e n t s d u e to I n te g r i t y M a n a g e m e n t ( I M ) C a u s e s ; 3 ) I P E I n c i d e n t s d u e to O p e ra t i o n s a n d M a i n te n a n ce (O & M ) C a u s e s ; 4 ) a n d P a r t i c i p a t i o n i n P i p e l i n e S a f e t y M a n a g e m e n t Syste m ( P S M S ) P ro g ra m s . I n te g r i t y m a n a g e m e n t c a u s e s a re t h o s e p i p e i ss u e s d e s i g n e d to b e p reve n te d by o p e ra to r p ro g ra m s f o c u s e d o n a ss e ss m e n t o f l i n e p i p e i n te g r i t y, i n c l u d i n g co r ro s i o n a n d c ra c k i n g . O p e ra t i o n s a n d m a i n te n a n ce c a u s e s a re t y p i f i e d by e q u i p m e n t fa i l u re o r i n co r re c t o p e ra t i o n s .


.27


Key Pe rfo rm a n ce Ind i cato r s

# 1 : T OTA L I N C I D E N T S & T OTA L I P E I N C I D E N T S (2013-2017)

500 454

400

461

401

420

413

300

impacted the people or the environment, 20 fewer incidents than 2016, a 19%

200 100

In 2017, approximately 85 incidents

decrease in IPE incidents from 2016 as well as 2013. IPE incidents in 2017 105

112

113

105

85

0 2013

2014

2015

2016

in that year. A full description of the specific types of incidents falling under

2017

the IPE criteria can be found on page 46.

TOTAL IPE INCIDENTS

TOTAL INCIDENTS

represented 21% of total incidents (413)

#2: INTEGRITY MANAGEMENT IPE INCIDENTS (2013-2017)

80 70 60 50

0 2

0

16

11

36

38

40 30

1

I n te gr i ty M a n a g e me n t (I M ) I P E rel eas es

0 0 10 43

0 2

a re c a u s e d by fa i l u re s o f th e p i p el i n e,

17

0 2

25

26

7

20

o f th e p i p e me ta l o r we l d . Ove r t h e l ast 5 ye a r s , to ta l I M I P E re l e a s e s are d ow n 35 % fro m 5 4 to 34, a n d i n c i de nt s cau s ed by co r ro s i o n a re d ow n a pp roxi m atel y

10

31% . I n c i de n ts c a u s e d by a fa i l ure o f

0 2013

28.

s u c h a s co r ro s i o n , c ra c k i n g o r a fai l u re

2014

2015

2016

2017

CORROSION FAILURE

MATERIAL FAILURE OF PIPE/WELD

PREVIOUS EXCAVATION DAMAGE

PREVIOUS OUTSIDE FORCE DAMAGE


p i p e me ta l o r we l d s e a ms a re d ow n a pp roxi mate l y 60 % .


# 3 : O P E R AT I O N S A N D MAINTENANCE (O&M) IPE INCIDENTS

80

80 60

O&M IPE incidents reflect actions by

60 3 40

40 20

4

15 3

16 4

1915

16 20

20 0 19 2013 0 2013

4 9

14 1

4

26 9

21 14

26 20 2014

operators during their day-to-day

1

21 2016

2015

activities operating their pipeline network.

3

Operations activities, such as installing

6 3 19 6 19 2017

2014

EXCAVATION DAMAGE

2015

2016

storage equipment, make up O&M IPE. Total O&M incidents are down 24% over

2017

re ma i n e d co n s i ste n t fro m 2 01 3 to 2 01 7 a n d i n co r re c t o p e rati o n s de c reas ed by

EQUIPMENT FAILURE INCORRECT OPERATION

the pipeline and its valves, pumps and

the last five years. Eq u ip m e n t failu re

EQUIPMENT FAILURE INCORRECT OPERATION

and maintaining equipment and operating

EXCAVATION DAMAGE

60 % fro m ove r th e l a st 5 ye a r s .

PERCENTAGE OF BARREL MILES

100

100 80 60 80

95%

PERCENTAGE OF BARREL MILES

95%

97%

97%

# 4 : P S M S O P E R AT O R COMMITMENT In 2017, the pipeline industry increased operator commitment to pipeline safety management systems from 95% of barrel

40 60

miles to 97% of barrel miles.

20 40 0 20

2016

2017

0 2016

2017


.29


In c id en t s by Lo cat i o n

The location of a pipeline incident matters both when gauging the impact of an incident and developing strategies to prevent incidents in the future. Pipeline operators place the greatest emphasis on preventing and minimizing impacts to people or the environment (IPE). Tracking IPE incidents helps operators focus on this priority. Additional measures of incident impacts are whether they are contained on operator property or outside the operator ’s facilities, specifically in high consequence areas (HCAs), a regulatory term used by PHMSA.

#5: PIPELINE INCIDENTS INSIDE A N D O U T S I D E O F O P E R AT O R PROPERTY (2013-2017)

500

400

332

333

266

289

296

In 2017, 72% of incidents from liquids

300

200

pipelines were wholly contained within an operator ’s property. Specifically, in 135

122

131

128

117

contained incidents and 117 had impacts

100

0

2017, there were 296 operator property outside of operator property. Examples of pipeline operator property include

2013

2014

2015

CONTAINED ON OPERATOR PROPERTY

2016

2017

OUTSIDE OPERATOR PROPERTY

pump stations, tank farms and terminals. Pipeline operators report incidents contained on operator property to PHMSA. While incidents in public spaces constituted only 28% of total incidents, reducing this number is a top priority for industry.

500 400

454

461

401

420

413

105

85

300 200 100 0

105

2013

112

2014

113 2015

TOTAL NON-IPE INCIDENTS

30.


2016

2017

TOTAL IPE INCIDENTS


#6: PIPELINE INCIDENTS INSIDE HCAS (2013-2017)

500 500

400 300

157

200 100

332

Through federal regulation, PHMSA

168

333

266

175

289

296

244 135

254

122

269

128

252

238

131

117

0

in high-consequence areas (HCAs). concentration, commercially navigable waterways, or sensitive environmental locations. IPE data differs from HCA data in that it can include incidents wholly

100 0

tracks incidents defined as occurring HCAs are defined as areas of population

300 200

192

200

400

2013

2014

2015

2013

2014INSIDE HCA

2015

CONTAINED ON OPERATOR PROPERTY

2016

2017

2016 OUTSIDE HCA

2017

OUTSIDE OPERATOR PROPERTY

contained within an operator ’s property if that property is within the boundaries of a surrounding HCA, even if that inside property-contained incident had no impact on the people or the environment. In 2017, 42% of total incidents were in HCAs.

# 7 : T OTA L I N C I D E N T S & T OTA L IPE INCIDENTS (2013-2017)

500 400

454

In 2017, approximately 85 incidents

461

401

420

413

impacted the people or the environment, 20 fewer incidents than 2016, reflecting

300

4% decrease in IPE incidents from 2016. 200

IPE incidents in 2017 represented 21% of total incidents in that year. A full

100 0

105

2013

112

2014

113 2015

TOTAL NON-IPE INCIDENTS

105 2016

85 2017

description of the specific types of incidents falling under the IPE criteria can be found on page 46.

TOTAL IPE INCIDENTS


.31


In c id en t s by S i ze

500

24

18 400

19 40

300 82 200 260

#8: LIQUID PIPELINE INCIDENTS BY SIZE (2013-2017)

47

26

25

58

41

52

93

83 302

296

84 252

98 249

M o s t p i p e l i n e i n c i d e n t s a re s m a l l i n s i z e . I n 2 0 1 7, 6 0 % o f t h e i n c i d e n t s we re l e s s t h a n 5 b a r re l s ( 1 b a r re l = 4 2 g a l l o n s) a n d 8 4 % we re l e s s t h a n 5 0 b a r re l s . I n 2 0 1 7, o n l y 6 % o f i n c i d e n t s we re 5 0 0 b a r re l s o r l a rg e r.

100 0 2013

2014

2015

2016

≤5 BBLS

>5 AND ≤50 BBLS

>50 AND ≤500 BBLS

>500 BBLS

2017

500

#9: IPE INCIDENTS BY SIZE (2013-2017)

400

Most IPE incidents are small in size. In 2017, approximately 61% of the IPE

300 200

incidents were less than 50 barrels, with 11 24 30 40

9 19 32 52

9 25 30 49

2014

2015

14 27 24 40

100 0 2013

32.

2016

≤5 BBLS

>5 AND ≤50 BBLS

>50 AND ≤500 BBLS

>500 BBLS


11 22 22 30

2017

12% of the incidents 500 barrels or larger.


500

#10: CRUDE OIL INCIDENTS BY SIZE (2013-2017)

400

S i mi l a r to to ta l i n c i de n t tre n d s , t h e ma j o r i ty o f c r u de o i l i n c i d e n t s are

300 200 100 0 2013

s ma l l i n s i ze. I n 2 017, 5 8% o f cr u d e

11

7

8

31

25 49

54

123

149

51

31

164

8 35 41

13 29

o i l i n c i d e n ts we re 5 b a r re l s or s m al l er. Ove r th e l a st 5 ye a r s , c r u de oi l i n ci d en t s

45

l e ss th a n 5 b a r re l s de c re a s e d 4 % f ro m

120

118

12 3 to 118 a n d th e n u mbe r o f cr u d e o i l

2016

2017

i n c i d e n ts 5 0 0 b a r re l s o r l a rg er i n creas ed 2014

2015

≤5 BBLS

>5 AND ≤50 BBLS

>50 AND ≤500 BBLS

>500 BBLS

40 % fro m 8 to 13. Ove r th e s am e p er i o d , to ta l c r u d e o i l re l e a s e s re ma i n ed t h e s a me at 2 0 5 i n c i d e n ts .


.33


In c id en t s by Co mmo d i t y

#11: ALL INCIDENTS BY COMMODITY (2013-2017)

500 500 HIGHLY VOLATILE VOLATILE LIQUIDS LIQUIDS (HVLS) (HVLS) HIGHLY

400 400 300 300

In 2017, crude oil incidents represented 50% of total incidents, with refined

REFINED PRODUCTS PRODUCTS REFINED

products at 29% and natural gas liquids at 19% of total incidents. The number of

200 200

CRUDE OIL OIL CRUDE

annual crude oil incidents are down 20%

100 100

from their peak in 2015 and unchanged from 2013.

0 0

2014 2014

2013 2013

2015 2015

2016 2016

2017 2017

#12: IPE INCIDENTS BY COMMODITY (2017)

2017 2017 YEAR YEAR

In 2017, there were 53 crude oil IPE

2017 2017

53 53

2017 2017 YEAR YEAR

0 0

incidents and 32 refined products IPE

REFINED REFINED PRODUCTS PRODUCTS

CRUDE OIL OIL CRUDE

incidents.

32 32

20 20

40 40

CRUDE OIL OIL CRUDE

18,841 18,841

60 60

80 80

100 100

REFINED REFINED PRODUCTS PRODUCTS

16,279 16,279

# 1 3 : P E R C E N TA G E O F I P E BARRELS RELEASED BY COMMODITY (2017) Crude oil incidents impacting the people or the environment (IPE) in 2017 represented 62% of total IPE incidents and 54% of total IPE incident barrels. Over the

0 0

5000 5000

10,000 15,000 15,000 20,000 20,000 25,000 25,000 30,000 30,000 35,000 35,000 40,000 40,000 10,000

last 5 years, the percentage of crude oil IPE incidents is down 24%.

34.




.35


In c id en t s by C a use

45%

Equipment Failures 19%

Corrosion Failures 15%

Incorrect Operations 7%

Material Pipe/Weld Failures

5%

Natural Force Incidents

4%

Other Incident Causes

3%

Excavation Incidents

2%

Outside Force Incidents 0

10

20

30

40

50

#14: LIQUIDS PIPELINE INCIDENTS BY CAUSE (2013-2017) Equipment failure is the most frequent cause of liquids pipeline incidents. Over the last 5 years, equipment failure represented 45% of incidents, corrosion failure 19% and incorrect operation 15% of incidents. Material pipe/weld failures include cracking, a primary source of large volume releases, but represented only 7% of incidents over the last 5 years.

36.



32%


Equipment Failures

#15:LIQUIDS IPE PIPELINE INCIDENTS BY CAUSE (2013-2017) The most frequent cause of IPE incidents

12% Material Pipe/Weld Failures

over the last 5 years was corrosion at 32% of total IPE incidents.

12% Incorrect Operations Excavation Incidents

9%


6%


5%

Outside Force Incidents

4% 0

7

14

21

28

35

22%



Corrosion was responsible for the largest number of barrels released from IPE

17%

Excavation Incidents 14%

incidents at 22%. Equipment failure, the most frequent cause of all incidents,


was the cause of only 4% of IPE incident barrels released, reflecting the reduced

12% Material Pipe/Weld Failures

proportion of operator property incidents impacting the people or the environment

Incorrect Operations

9%

# 1 6 : P E R C E N TA G E O F I P E BARRELS RELEASED BY CAUSE (2013-2017)

and the smaller average size of equipment

0

4%


4%

Equipment Failures

7

14

21

28

failure incidents. Natural force incidents (19%) and excavation incidents (17%) account for 36% of the IPE barrels

35

released over the last five years (such as

flooding, earthquakes, and lightning).


.37


Pip elin e M i l e s & B a r re l s D e l i ve re d

#17: MILES OF U.S. LIQUIDS PIPELINES BY PRODUCTS (2012-2016)

300

250

200

(Thousands) CO2/ETHANOL

At the end of 2016, there were 212,568 total miles of liquid pipelines, with crude

150

NATURAL GAS LIQUIDS (NGLS)

oil pipelines representing 36% of the total. Over the last five years, the total miles of

100

pipeline have increased by 26,346 or 14%.

PETROLEUM PRODUCTS

50 CRUDE OIL

0 2012

2013

2014

2015

2016

#18: BARRELS DELIVERED BY U.S. LIQUIDS PIPELINE (2012-2016)

20

(Billions)

15

In 2016, there were a total of 18,447,493,712 barrels delivered by

PETROLEUM PRODUCTS

10

pipeline, with crude oil representing approximately 58% of the barrels delivered. Over the last five years,

5

crude oil barrels delivered by pipeline CRUDE OIL

have increased by approximately 31% or 4,368,303,450 barrels.

0 2012

38.

2013

2014


2015

2016



.39


Dat a A p pe n d i x GRAPH #1:

TOTAL INCIDENTS & TOTAL IPE INCIDENTS (2013-2017)

Year

Total IPE Incidents

Total Incidents

2013

105

401

2014

112

454

2015

113

461

2016

105

420

2017

85

413

-19%

3%

% Change from 2013

Source: Pipeline and Hazardous Materials Safety Administration, PHMSA Pipeline Safety as of March 2018.

GRAPH #2:

IM IPE RELEASES (2013-2017)

Year

Corrosion Failure

Material Failure of Pipe/Weld

Previous Excavation Damage

Previous Outside Force Damage

Total Incidents

2013

36

16

2

0

54

2014

38

11

0

1

50

2015

43

10

0

0

53

2016

25

17

2

0

44

2017

26

7

2

0

35

-28%

-56%

0%

0%

-35%

% Change from 2013


GRAPH #3:

O&M IPE INCIDENTS (2013-2017)

Year

Equipment Failure

Incorrect Operation

Excavation Damage

Total Incidents

2013

19

15

3

37

2014

20

16

4

40

2015

26

9

4

39

2016

21

14

1

36

2017

19

6

3

28

% Change from 2013

0%

-60%

0%

-24%


40.



GRAPH #4:

PSMS OPERATOR COMMITMENT (BARREL MILES)

Year

% Commitment

2016

95

2017

97

Source: API and AOPL Membership Survey.

GRAPH #5:

PIPELINE INCIDENTS INSIDE AND OUTSIDE OF OPERATOR PROPERTY

Year

Outside Operator Property

Contained on Operator Property

Total Incidents

2013

135

266

401

2014

122

332

454

2015

128

333

461

2016

131

289

420

2017

117

296

413

Total

633

1,516

2,149

% Change from 2013

-13%

11%

6%


GRAPH #6:

PIPELINE INCIDENTS IMPACTING HCAS

Year

Outside HCA

Inside HCA

Total Incidents

2013

244

157

401

2014

254

200

454

2015

269

192

461

2016

252

168

420

2017

238

175

413

Total

1,257

892

2,149

% Change from 2013

-2%

11%

6%


GRAPH #7:

TOTAL INCIDENTS & TOTAL IPE INCIDENTS (2013-2017)

Year

Total IPE Incidents

Total Incidents

2013

105

401

2014

112

454

2015

113

461

2016

105

420

2017

85

413

-19%

3%

% Change from 2013

Source: Pipeline and Hazardous Materials Safety Administration, PHMSA Pipeline Safety as of March 2018. 2018 ANNUAL LIQUIDS PIPELINE REPORT

.41



LIQUID PIPELINE INCIDENTS BY SIZE (2013-2017)

Year

≤ 5 Bbls

> 5 and ≤ 50 Bbls

> 50 and ≤ 500 Bbls

> 500 Bbls

Total Incidents

2013

260

82

40

19

401

2014

296

93

47

18

454

2015

302

83

52

24

461

2016

252

84

58

26

420

2017

249

98

41

25

413

% Change from 2013

-4%

20%

3%

32%

3%

Pipeline and Hazardous Materials Safety Administration, PHMSA Pipeline Safety as of March 2018.

GRAPH #9:

IPE INCIDENTS BY SIZE (2013-2017)

Year

≤ 5 Bbls

> 5 and ≤ 50 Bbls

> 50 and ≤ 500 Bbls

> 500 Bbls

Total Incidents

2013

40

30

24

11

105

2014

52

32

19

9

112

2015

49

30

25

9

113

2016

40

24

27

14

105

2017

30

22

22

11

85

Total

211

138

117

54

0

-25%

-27%

-8%

0%

0%

% Change from 2013


GRAPH #10:

CRUDE OIL INCIDENTS BY SIZE (2013-2017)

Year

≤ 5 Bbls

> 5 and ≤ 50 Bbls

> 50 and ≤ 500 Bbls

> 500 Bbls

Total Incidents

2013

123

49

25

8

205

2014

149

54

31

7

241

2015

164

51

31

11

257

2016

120

41

35

8

204

2017

118

45

29

13

205

-4%

-8%

16%

63%

0%

% Change from 2013


42.



GRAPH #11:

INCIDENTS BY COMMODITY (2013-2017)

Year

Crude Oil

Refined Products

Highly Volatile Liquids (HVLs)

CO2

Biofuel/Ethanol

Total Incidents

2013

205

134

57

5

0

401

2014

241

157

50

5

1

454

2015

257

134

63

7

0

461

2016

204

134

72

9

1

420

2017

205

121

78

9

0

413

% Change from 2013

0%

-10%

37%

80%

0%

3%


GRAPH #12:

INCIDENTS BY COMMODITY (2017)

Year

Crude Oil

Refined Products

2013

70

35

2014

71

41

2015

75

38

2016

70

35

2017

53

32

-24%

-9%

% Change from 2013


GRAPH #13:

PERCENTAGE OF IPE BARRELS RELEASED BY COMMODITY (2013-2017)

Year

Crude Oil

Refined Products

2013

78%

22%

2014

45%

55%

2015

65%

35%

2016

64%

36%

2017

54%

46%

% Change from 2013

-49%

53%



.43



LIQUIDS PIPELINE INCIDENTS BY CAUSE (2013-2017)

Cause

Total Incidents

Percentage

Equipment Failures

968

45%

Corrosion Failures

418

19%


322

15%


149

7%


101

5%


80

4%


69

3%


42

2%

Total

2,149


GRAPH #15:

TOTAL IPE INCIDENTS BY CAUSE (2013-2017)

Cause

Total Incidents

Percentage

Corrosion Failures

168

32%

Equipment Failures

105

20%


61

12%


60

12%


47

9%

Natural Force incidents

30

6%


26

5%

Outside Force incidents

23

4%

Total

520


44.



GRAPH #16:

IPE BARRELS RELEASED BY CAUSE (2013 -2017)

Cause

Barrels Released

Percentage

Corrosion Failures

40,577

22%


34,817

19%


30,675

17%


25,936

14%


21,279

12%


16,973

9%


6,712

4%

Equipment Failures

6,483

4%


GRAPH #17:

Crude Oil Petroleum Products Natural Gas Liquids (NGLs) CO2 /Ethanol Total Miles

MILES OF U.S. PIPELINE AND BARRELS DELIVERED (2012-2016) 2012

2013

2014

2015

2016

57,463

61,087

66,943

73,171

76,092

64,042

63,351

61,767

62,634

62,435

59,861

62,768

65,792

67,667

68,831

4,856

5,206

5,292

5,256

5,210

186,221

192,412

199,793

208,728

212,568


GRAPH #18:

MILES OF U.S. PIPELINE AND BARRELS DELIVERED (2012-2016) 2012

2013

2014

2015

2016

Crude Oil

7,460,710,613

8,324,012,774

9,289,972,460

10,868,122,224

10,683,361,776

Petroleum Products

6,618,479,649

6,643,084,825

6,888,545,527

7,278,500,447

7,764,131,936

14,079,190,262

14,967,097,599

16,178,517,987

18,146,622,671

18,447,493,712

Total Barrels

Source: U.S. Federal Energy Regulatory Commission


.45


DEFINITIONS & NOTES BARRELS

N AT U R A L G A S L I Q U I D S

O n e ba r re l of c r ud e oil o r petro leu m produ c ts

Pe tro l e u m p ro d u c ts th at a re l i qu i d w h e n t ravel i n g

co n t ains 42 ga llons.

th ro u g h a pi p e l i n e u n d e r h i gh p re ss u re a n d a g as at atmo s ph e r i c p re ss u re a re re fe r re d to g en eral l y a s n atu ra l ga s l i q u i d s (N G Ls). E xa mp l e s o f N G L s

BARRELS RELEASED Pipeline operators report to PHMSA the number of barrels released unintentionally during each pipeline incident. Unintentionally released barrels of crude oil and petroleum products forms the basis of barrels released data and analysis in this report. PHMSA also requires operators to report intentional releases of natural gas liquids in gas

tra n s p o r te d by pi p e l i n e i n c l u de : p ro p a n e, et h an e a n d b u ta n e. Th ey o cc u r n atu ra l l y i n pe trol eu m d e po s i ts a n d a re p ro d u ce d a l o n g w i th c r ud e o i l o r n atu ra l g a s (me th a n e). N G Ls a re s e pa rate d f ro m th e c r u d e o i l a n d n atu ra l g a s a fte r p ro d u ct i o n a n d s e n t to ma n u fa c tu re r s (e th a n e, b u ta ne) as an i n d u str i a l raw mate r i a l o r to o th e r co mme rci al , a gr i c u l tu ra l o r re s i d e n ti a l u s e s (pro p a n e) .

form into the atmosphere during maintenance activities. This process, called “blowdown,” vents the gas product from the section of pipeline set to undergo maintenance. Barrels released data

I N C I D E N T S I M PA C T I N G P E O P L E O R THE ENVIRONMENT (IPE) CRITERIA

in this report does not include intentional

I f e i t h e r c r i te r i o n 1 o r 2 b e l ow i s m e t f o r a c r u d e

blowdown releases.

o i l o r re f i n e d p ro d u c t s p i p e l i n e t h e i n c i d e n t co u n t s a s I P E :

IN-LINE INSPECTION DEVICE OR “SMART PIG” An i n -line inspe c t ion (ILI) device, common ly re fe rre d to a s a “smart pig”, is a diagn ostic to o l t h at t rave ls inside th e pipelin e scan n in g th e p i p e walls for impe r fe c tion s an d recordin g th e data fo r late r ana lysis.

T I E R 1 . Re ga rdl e ss o f l o c ati o n o f i n c i de n t : Fata l i ty; o r I n j u r y re qu i r i n g i n -p ati e n t h o s pi ta l i z at i o n ; o r I gn i ti o n ; o r E xp l o s i o n ; o r Eva c u ati o n ; o r Wi l dl i fe i mpa c t; o r Wate r co n ta mi n ati o n = o ce a n /s e awate r, g ro u n d wate r, o r d r i n k i n g wate r o r p u b l i c/ n o n -o p e rato r pr i vate p ro p e r ty d a ma g e

46.



T I E R 2. For loc atio n of in ciden t “No t total l y co n t a ine d on operator- co n trolled property ” U ninte nt iona l release volu me greater tha n or e qua l to 5 gallo n s an d in an HCA; or U ninte nt iona l release volu me greater tha n

REFINED PRODUCTS P ro d u c ts d e r i ve d fro m th e p ro ce ss o f re f i n i n g c r u de o i l . E xa mpl e s o f re fi n e d p ro d u c ts i n cl u d e: g a s o l i n e, ke ro s e n e, a n d l u b r i c ati n g o i l .

or e qua l to 5 barrels an d ou tside of an H CA ; or Wate r cont amin ation ; or S oil cont a min atio n

CRUDE OIL I n c l u d e s co n d e n s ate, l i g h t, me di u m, a nd

PHMSA INCIDENT REPORTING

h e avy u n re fi n e d hyd ro c a r b o n s extra c ted f ro m u n d e rgro u n d p e tro l e u m fo r mati o n s .

P i p e line ope rators regu lated by PHM SA are re q u ire d to re port data related to pipelin e in c i de nt s inc luding locatio n , cau se an d co n se que nce s. P HM SA compiles th is in formati o n in a public ly ava i lable o n lin e database. Th e pipe line sa fety data u sed in th is repo r t was obt a ine d from PHMSA in March 2018 .

API RECOMMEND PRACTICE D o cum e nt s t hat commu n icate proven in du str y p rac t ice s; R P s may in clu de bo th man dato r y a n d n o n - ma ndator y provision s.


.47

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