Pipelines and Risk Management

How Safe is Safe?

Pipeline Safety Trust Conference
Denise Hamsher
Enbridge Energy Company
November 2006

 Over 14,000 miles

of natural gas
gathering,
transmission and
crude oil pipelines
Operating since
1950
Expanding pipeline
systems to meet
market transport
needs

How Safe is Safe?

Can we eliminate risk?
Or is question: What is acceptable risk?

Scientific and technical answer?

Government policy?
Regulatory decision?
Community concern?

There may be no single answer to

question of How Safe is Safe?
But there are approaches to improve
understanding and communicate risk

Technical Scientific Answer

Risk = Probability X Consequence
Probability:
a revised USGS report concluded that a 33 percent
probability now exists for one or more large earthquakes
in the San Francisco Bay Area region between 1990 and
2000..
Based on fact-finding and data
But whose facts?

Consequence:

Safety of public and workers

Environmental impact
Upsets and reliability in service
Costs and liability

Risk
As seen by engineer & regulator:

Risk = probability x
consequence
As seen by others:

Risk = hazard* x concern**

* Hazard may be actual or perceived
** Concern may be over safety, environment, fairness,
property value, lack of information, lack of trust

Why we have
different perceptions of risk
Familiar versus Unknown
Benefit versus Burden
Fair versus Unfair
Controlled versus Out of my
control
Trusted source versus Suspicious
source

Government Regulatory Answer:

Public Health and OSHA standards on
acute or long-term exposure limits to
certain chemicals
Prescribed frequency of inspections or
maintenance of pipelines
Gas operations class locations and
designation of liquid pipeline HCAs, each
requiring special safety measures
All true.all based on factbut does policy
make everyone feel safe?

Community Perspective
Public definition of risk =
Risk = Hazard X Concern

We all expect zero risk for

ourselves and loved ones
Sometimes hazard is high and
concern low and sometimes
concern is high and scientific facts
indicate a low risk

So how do we manage the

interface among technical
assessments, government
policy and public concern?

Approaches that help

Accept responsibility
Encourage fact finding and sharing
Reduce and mitigate risks
Basis of regulatory and consensus standards

All parties act with respect and be

trustworthy
Principled leadership

Acknowledge risk issue-management is

function of investment in communications
and involvement

Example: Regulatory Policies for

Pipeline Operations
Public Involvement
Fact finding and research rather than
reactive to unusual, rare event
Flexibility to ensure effective
practices
Education, awareness, dialogue

Example: Planning a New Pipeline

Early planning and dialogue with community
County
Farm Bureaus
Landowners, etc.

Fact finding
Route alternative considerations
Review route with landowner, adjusting as possible

Trustworthy dialogue
Knowledgeable, trained company representatives
Commitment by all to reach solutions

Two-way public consultation requires investment

Planning New Pipeline (contd)

Mitigate Risks
Design and routing carefully planned
Special construction practices
o Protect farmlands with special soil handling
techniques
o Special river crossing techniques. . .etc.
Additional safeguards near some areas may
require consideration of:
o Thicker wall pipe under rivers
o Supplemental patrols or inspections
o Warning tape to warn excavators
o Route deviations

How Safe is Safe?

A few observations..
Risk and safety is all in the eye of beholder
We all know there is no such thing as zero
risk, but we want assurances we are safe
Risk communications must be interactive
Each party should commit to:
Increasing knowledge and understanding
Enhancing trust and credibility
Resolving conflict