A changing landscape: the pipeline industry in

Coral Lukaniuk, P.Eng. Director, CEPA Integrity First®

October 18, 2016 Canadian Energy Pipeline Association (CEPA) overview CEPA members

Access Pipeline Inc. Ltd. ATCO Pipelines Pipelines Inc. Ltd. Kinder Morgan Canada Corporation Plains Midstream Canada Spectra Energy TransCanada PipeLines Limited TransGas Limited Trans‐Northern Pipelines Inc.

aboutpipelines.com Transmission pipelines

Liquids Natural Gas Pipelines pipelines

Canadian Crude Oil Facts Canadian Natural Gas Facts . Production: 3.9 million barrels/day . Production: 15 billion cubic feet/day . Exports: 3.0 million barrels/day . Exports: 7.8 billion cubic feet/day . Value of Exports: $56.8 billion . Value of Exports: $9.8 billion 2015 data 2015 data S S S S S aboutpipelines.com Pipeline industry vitals

60 97% Over 60 years in Highly regulated Transports 97% of the natural gas Canada industry and onshore crude oil produced in Canada

~130,000km

~130,000 kilometres of pipeline Safe and environmentally in Canada and the U.S. sound

aboutpipelines.com Pipelines — energy highways

TRANSMISSION PIPELINES IN CANADA TRANSPORT 3.3 MILLION BARRELS OF OIL PER DAY

S S So

S aboutpipelines.com S Pipelines are critical infrastructure

aboutpipelines.com CEPA Integrity First® Full support - Policy Statement

We the members of CEPA are dedicated to continuing the development of a safe, socially and environmentally sustainable energy pipeline industry for all Canadians.

We commit ourselves to advancing a safety culture aimed at protecting the health and safety of our communities, our workplaces and the environment everywhere we operate.

- Signed by the CEPA Board of Directors, 2014

aboutpipelines.com What is CEPA Integrity First?

CEPA Integrity First® is an industry-led program established by the Canadian Energy Pipeline Association (CEPA) to continuously improve in the areas of safety, environment and socio-economics.

Purpose Mission

To improve Canadians' trust To continuously improve and confidence in the pipeline industry safety and industry performance

aboutpipelines.com Goals

aboutpipelines.com Principles and priorities

Ensuring safe Minimizing the impact on the Creating lasting social and communities and environment and biodiversity economic benefits to workplaces throughout every phase of communities, regions and pipeline operations countries where we operate

Priorities Priorities Priorities

• Emergency management • Land management • Land use and access • Pipeline integrity • Air emissions • Economic benefits • Control room management • Water protection • Aboriginal relations • Worker safety • Wildlife protection • Workforce management • Damage prevention • Noise mitigation • Pipeline safety communications

aboutpipelines.com Building credibility

aboutpipelines.com Integrity First Cycle

aboutpipelines.com Integration Approach

• Iterative process • Review and analysis • Engagement at various stages

aboutpipelines.com Integrity First Categories

• Context of Organization • Leadership • Planning • Support Sustainable foundation • Operations ◦ Key focus areas • Performance Evaluation • Improvement

aboutpipelines.com Alignment

aboutpipelines.com Integration: Integrity First Mapping

The maturity themes for the categories have been mapped to various regulations/standards.

OPR CSA ISO 9001 ISO OHSAS API OSHA AB-512 Maturity Theme(s) Z662-15 14001 18001 1173* 1910.119 Categories 6.1, 3.1.2(h) 10.1, 10.1, 4.5.3.2 11.2 4.21 The degree to which 6.5(1) , A.10 10.3 10.3 management systems are (w), (x), leveraged to drive cultural 7. Improvement (u), change 6.6(1)(b )

*49 CFR Part 192 and 49 CFR Part 195 were also reviewed but they are limited in scope and application.

aboutpipelines.com Alignment Example #1: OPR

Aligns to CEPA Integrity First OPR Category 5. Operations 6.5(1)(i) Maturity Theme 5A Management System Processes** “The maturity of the application and “The company shall have an evaluation of the management of established, implemented and change process occurs at increasingly effective process for identifying and broader organizational levels.” managing any change that could affect safety, security or protection of the environment, including any new hazard or risk, any change in.…” ** ** Excerpt from: SOR/99-294 National Energy Board Onshore Pipeline Regulations (Last amended on March 21, 2013), p. 8

aboutpipelines.com Alignment Example #2: CSA Z662

Aligns to CEPA Integrity First CSA Z662 Category 4. Support 3.1.2(C)(iii) Maturity Theme 4D Safety and loss management systems** “The maturity of processes “a process for the management of associated with the contractor resources, including: contractor selection.” selection and performance monitoring that ensures services are performed in a manner that conforms to the requirements of the safety and loss management system” ** ** Excerpt from: CSA Z662-15 Oil and gas pipeline systems (Last amended on June, 2015), p. 81

aboutpipelines.com Involvement considerations

Considerations: • Program maturity • Management system maturity • Organizational structure

aboutpipelines.com Implementation Integrity First Cycle

aboutpipelines.com Guidance documents

Based on the priorities identified, subject matter experts from CEPA member companies develop guidance documents for each area.

aboutpipelines.com Terms and Glossary

Integrity First Category Category Identifier

Guidance  Maturity Theme(s) Criteria Outlines what is required to progress through the maturity scale

aboutpipelines.com Maturity levels

Foundation Continually Proactive Leading 4 3 Improving 2 1

aboutpipelines.com Self-assessment leads to action

• Member companies taking initiative to continuously improve

• Industry continuously improving through CEPA workgroups and networks – Potential improvement areas – Opportunities to share leading practices

• CEPA Integrity First continuously improving

aboutpipelines.com Third Party Verification

• Verification will take place after the 2nd self-assessment and thereafter • Verifier(s) will independently: ◦ Evaluate a member company’s self-assessment results/process for a given priority area(s) ◦ Assess the broader adoption of the Integrity First program

aboutpipelines.com Continuous improvement

• CEPA reviews the results with the self-assessment leads to prioritize where to share leading practices and where industry can collaborate to address potential improvement areas; action plan is finalized and approved by the working group or knowledge network

• The identified areas for improvement are provided to CEPA’s Safety and Engineering team to support the work group or knowledge network during its improvement cycle

aboutpipelines.com Reporting overview

• Self-assessment

◦ A detailed report will be distributed to the company self-assessment (SA) leads approx. six weeks

after the results are submitted; summary report distributed to leadership

• Verification

◦ Third party verifier(s) provides a verification report to the member company; member company

submits a summary/verification statement of those results to CEPA for continuous improvement

and consolidation for public reporting

• External reporting

◦ CEPA will continue to share balanced information on Integrity First in various formats including the

CEPA Performance Report

◦ Each member company will determine what is appropriate for its own reports

aboutpipelines.com Closing Dispel the myths

Integrity First is a Integrity First focuses on pipeline integrity improvement in numerous priority improvement program. areas including pipeline integrity.

Member companies use Integrity First is another management system(s) and management system. Integrity First has been designed to integrate with numerous systems allowing for company and industry improvement.

aboutpipelines.com Integrated for excellence for excellence

34 What our members are saying

Integrity First

“enables sharing of lessons learned/ pitfalls to avoid”

“facilitates industry collaboration”

“helps to increase regulator and public confidence”

From a self-assessment workshop attendee. “provides a consistent approach”

“enables forward planning and documentation”

“allows focus on meaningful priorities”

aboutpipelines.com Timeline

aboutpipelines.com Acknowledgements

• Integrity First Steering Committee – provide the strategic direction • Integrity First Champions – are change agents to embed Integrity First within their companies • Management Systems Knowledge Network – experts come together with variable experience in management systems • External Advisory Panel – external critics

aboutpipelines.com Speaker contact information

Coral Lukaniuk Director, CEPA Integrity First®

Canadian Energy Pipeline Association Phone: 587.293.2970 Email: [email protected]

aboutpipelines.com