Illinois Commerce Commission

1. Illinois Commerce Commission Darin Burk Manager – Pipeline Safety

2. Distribution Integrity Management • Proposed Rule published in the Federal Register on June 25, 2008 • Numerous comments were received by the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) • Final Rule expected in September of 2009

3. Why is PHMSA Proposing DIMP? • Additional prescriptive requirements would bee too burdensome on the pipeline industry. • More effective to allow operators to analyze their system, identify weaknesses that could result in high consequence incidents and address those weaknesses.

4. Program Implementation • Distribution system operators will have 18 months from the published date of the final rule to develop and implement a Distribution Integrity Management Program. • The DIMP will address 7 basic elements.

5. Element 1: Knowledge • Identify the characteristics of the system and the environmental factors necessary to assess applicable threats and risks to the system. • Understand the design and operation. • Identify the additional information needed • Determine how to obtain additional information • Have a process to refine plan • Record data for newly installed facilities

6. Element 2: Identify Threats • Threat Categories • Corrosion • Natural Forces • Excavation Damage • Other Outside Force • Material or Weld Failure • Equipment Malfunction • Inappropriate Operation • Other Concerns

7. Element 3: Evaluate and Prioritize Risk • Determine the relative probability of each threat • Determine likelihood of failure • Determine potential consequences • System may be subdivide the system into regions of similar characteristics and consistent risk

8. Element 4: Identify and Implement Measures to Address Risks • Effective leak management program • Enhanced damage prevention • Assuring individual performance (Training & Operator Qualification) • Quality assessment

9. Element 5: Measure Performance, Monitor Results & Evaluate Effectiveness • Number of hazardous leaks either eliminated or repaired • Number of excavation damages • Number of excavation tickets • Number of EFV’s installed • Total number of leaks eliminated or repaired • Additional measures

10. Element 6: Periodic Evaluation • Continually re-evaluate threats and risks on the entire system • Evaluate the effectiveness of the program for assuring individual performance to reduce the risk of human error • Determine appropriate period for complete program re-evaluation based on complexity and changes in factors • Maximum of 5 year re-evaluation interval

11. Element 7: Reporting Results • Must report plastic pipe material failures including: fittings, couplings, valves, and mechanical joints • Must be reported no later than 90 days after failure • Include: location, pipe size, material type, nature of failure, pipe manufacturer, lot number, date of manufacture and other information found in markings on failed pipe

12. Excess Flow Valves • Required on all single family residences • New installations and replacements • Not require if: • System operates below 10 psig • Operator has knowledge of contaminates • Could interfere with necessary operation and maintenance activities • If EFV meeting performance standards is not available to operator

13. Deviation from Required Inspections • Operators will be allowed to propose inspection intervals that are outside the current required time limits • The ICC will review the request and determine if the operator will be allowed to extend inspection intervals

14. Does This Rule Apply To Master Meter Operators? • Yes. • Master Meter operators will be required to meet 5 elements: • Infrastructure Knowledge • Identify Threats • Identify & Implement Measures to Mitigate Risks • Measure Performance, Monitor Results, Evaluate Effectiveness • Periodic Evaluation and Improvement

15. Questions?