WPC =sQ3)Pɾ25 ?34R[? րnƵO&Hjqa!x3|xIKLNC<< C(2C$ !  (3$ !  I- Level 1Level 2Level 3Level 4Level 5(L  Z (CG Times Regular<6X9`(CourierXx6X@7X@%\  `$Times NewRomanXXj\  PG;XP K, I&mage <=8C HKKKK d EEE'dxd  34D5D67H8E9E:;H<WPC**R !R !!R !ƚ-x` = g&R ! &&TNPP8Q=Pu & TNPP &&TNPP    "--_Times New Roman-.  g2 @Figure I-1 The Pipeline Risk Management Demonstration Projectb,PYGG(>6P((((jYG(b-YG,-YG(s->Y(PYPPGGY5(tGPY>6GP5-PY(aGP6GG5 "- 1Q p_Times New Roman-.  72 Risk Management Program Standardt,>Y(PYPPGGY5(bGPPGP(Y5PYYPGY!_Times New Roman-.  i(2 _Demonstration Project tGPY>5GP6,PY(bGP5GG5(_Times New Roman-.  i%2 _Performance MeasuresbGG5PGPYGG(GP?YGG>1_Times New Roman-.  i72 @ OPS Review and Approval Process(|bY(tGP,Gt(PYY(sYYGPPP-(aGPGG?>Times New Roman-.  i42 r!Risk Management DemonstrationsQ,>j8>882]2>%Q2]8>,%28%8?+Times New Roman-.  i2 Times New Roman-.  OC2 ( Program Standard is Used by Industry as5 00 +K5*00+ 0%E&*000 000& 0+%Times New Roman-.  iF2 &*Guideline for Development and Submittal ofE00+0+ 0 E*0+00J+0*00600J+0 Times New Roman-.  i92 !Proposed Risk Management Programs5 000&*0@%0V*0+0+J+05 00 *K&Times New Roman-. Times New Roman-.  i2 Times New Roman-.  OH2 + Review Protocols and Criteria based on the@+0+E6 00+0%+00@ * +0*&*0000+Times New Roman-.  iH2 f+Program Standard are Used by OPS to Review,5 00 +K5*00+ 0* +E&*000F550@+0+ETimes New Roman-.  i@2 &Approve, and Monitor Proposed IndustryE00 00++00U000 6 000%+0000&0Times New Roman-.  i2 LPrograms5 00 +K%Times New Roman-. Times New Roman-.  i2 Times New Roman-.  OF2 * Performance Measures are Used by both OPS5+ 0 K*0+*V*+%0 +%+ *F%+000000F56Times New Roman-.  iH2 +and Industry to Evaluate the Success of the+00 000% 00;0+0++0*60*++%%0 0+Times New Roman-.  i?2 %Risk Management Demonstration Project@%0U+0+0*K+0F*K00% *005 0*+--"Systemn-5@  "-`/`--'-  $"`` --@Y "-S--'-  $,>, --@Y "-S--'-  $,>>, --@Z "-T--'-  $,.>, --@ "---'--@  "---'-  $>p&TNPP &-- \\R3' Letter\ WPC))    !  &ƚ-%[ gu&  &&TNPP8Q=Pu & TNPP &&TNPP   r1 "--_Times New RomanlN-.  N2 (/Figure II-1 Risk Management Program Overviewb,PYGG(>?5P((((t,>Y(PYPPGGY5(bGPPGP(|PGGP-Gs@Times New Roman-.  !2 *{Program ElementsuV``U`005UUk@K@Times New RomanlN-.  i!2 *Process ElementsuV`UUKJ006UUk@K "- YtpTimes New Roman-.  i2 AdministrationhHp(H(8(0@((HHTimes New RomanlN-.  i2 Roles &U@$92 cTimes New Roman-.  i2 UResponsibilitiesU92@@@2#@$$#$#92Times New RomanlN-. Times New Roman-.  i2 PersonnelG9+1@@@9$Times New RomanlN-.  i2 #Qualifications\@9$#+$89$#@@2Times New Roman-. Times New RomanlN-.  i2 W Managementr9@8@9d9@#Times New Roman-.  i2  of Change@+ U@9@@9Times New RomanlN-. pTimes New Roman-.  i2 3Communications`HppHH(@@((HH8pTimes New RomanlN-. pTimes New Roman-.  i2  DocumentationhH@Hp@H(@((HHpTimes New RomanlN-. pTimes New Roman-.  i"2 Program EvaluationP0HH0@p$XH@(H@((HHpTimes New RomanlN-.  i2 and Improvement@HH$0pH0HH@p@H(pTimes New Roman-.  i2 1Risk Assessment\$2G \22922j9G+@Times New RomanlN-Times New Roman-.  iE2 )What is the Scope of the Risk Assessment?L(# (#-#(($((#6(:# >#(#Times New RomanlN-.  i62 _What Adverse Events Can Happen?L(#:(($$1(#( 5#(:$((#($Times New Roman-.  i?2 %How Likely are These Events to Occur?:(:0(#($#1(# #1(#((:#$($Times New RomanlN-.  ic2 =How Severe Would the Consequences Be if the Events Did Occur?:(:,$(##L(((($5(($((#($#6#($1(#( 9(9$#(#Times New Roman-aTimes New RomanlN-.  i62 1Risk Control & Decision Support\$2G \@H*9@$ j ]98$2#@G HGGG@9+_Times New Roman-Times New RomanlN-.  i=2 $What Could Be Done to Control Risks?L(#6(((5$9(($(6(((5( #Times New Roman-.  i]2 9What Are the Relative Merits of the Risk Control Options?L(#:#($5$$(#H#(($5(6(((:((($Times New RomanlN-.  i`2 ?;What Set of Activities Best Achieves Risk Management Goals?L(#-#(:#(#6#:$(#($5(G#($(#?#(:($$Times New Roman-.  i92 !Performance Monitoring & FeedbackN99*@9k@G99 y@G#+@9#G@ k N99GG@9G@Times New RomanlN-Times New Roman-.  iu2 oIWhat Improvements are Expected to Result from the Risk Control Decisions?L(#>(((#>$($#1((#$$((5$((>($5(6(((9$$(($Times New RomanlN-.  iT2 3What Measures Best Capture These Expected Outcomes?L(#G$# ($5$5$((#1($#1(($#$(:(#(?#$Times New Roman-.  im2 DAre the Selected Risk Control Activities Having the Intended Effect?:$($,$#$$(5(6(((:#($:#((((#(#(($(1$#$Times New RomanlN-.  i[2 8How Can the Overall Risk Management Process be Improved?:(:5#((#:(#$5(G#($(#?#(-(#$(#>(((#($Times New Roman-A--"Systemn-@ "-~~--'-  $&  $& --@ "-8~8H~H--'-  $ @v@  $v@ @ --@ "-~~--'-  $  $ --@  "- --'-  $     --@  "-  --'--@p "- n --'--@ = "-p p; --'-  $d BR pd p --@  "- --'-  $\ n \ R  --@+ "- ) --'-  $ T B T  --@ < "- : --'-  $d R d  --@, "- * --'-  $> T B T  --G@ "-XAXhAh--'-  $*`)` --@` "-^XX^hh--'-  $*d`yd`Times New RomanlN-.  h2 n Feedback Loops1#$(((#$,((( &TNPP &---((3$ !      0  (#$  0  U' DEEE |  )  September24,1996@  ii  ڈ (# DRAFT >e$"Small Circle"6k$Triangle0  >$Large Circle0  WPC))N N !N #ƚ|/c |Q&N &&TNPP8Q=Pu & TNPP &&TNPP  N   "--Times New Roman-.  2 Z Figure IV-1;06*+%F 0Times New Romanq-.  i<2 8#The Risk Assessment Process ElementUH8 ]#2G ]21922k8H* N9@9921 V#9k9G* "--  S)Times New Roman-.  i42 Scoping and Screening Analysis>28>?88>>?1221?>8Q>88,,Times New Romanq-Times New Roman-.  i:2 *C"Define the physical and analyticalE+ 0*0*000&*++00+0*0+*Times New Romanq-.  i12 boundaries of the assessment00000+ +%0 0*+%&*&%K*0Times New Roman-.  i2 (Section IV.1.1) 5++00 E00  Times New Romanq-.  i%2 #Event IdentificationK81?%,>2>%&18&8>Times New Roman-Times New Romanq-.  iK2 -Identify the events that could cause pipeline 0+0 00*+0*0%0++000*+0%+00*0+Times New Roman-.  iE2 )failures and lead to adverse consequences +0 +%*00+*00+00* &*+00%+00*0++%Times New Romanq-.  i2 (Section IV.1.2) 5++00 E00   Times New Roman-.  i"2 Frequency AnalysisD22>>2>28Q>88,,Times New Romanq-Times New Roman-.  iE2 )Estimate how often the events might occur;%K++00E0 *00+*0+0%K000+*0 Times New Romanq-.  i2 }(Section IV.1.3) 5++00 E00  CTimes New Roman-.  i%2 Consequence AnalysisQ8>,1?>2>21Q?88+,Times New Romanq-Times New Roman-.  iI2 ,Estimate the severity of the adverse impacts;%K++0*&*0+ 00 0*+00+ %*K0*+%Times New Romanq-.  i*2  should the events occur%00000*+0+0&0*+0 Times New Roman-.  i2 (Section IV.1.4) 5++00 E00  !.Times New Romanq-.  i2 CRisk AssessmentQ,>Q+,2+,]2>%Times New Roman-Times New Romanq-.  iB2 'Estimate the frequency and consequences;%K++0* +00*0+0+00*00&*00+0*+%Times New Roman-.  i(2 -of potential incidents0 00*0*0*0*0%Times New Romanq-.  i2 (Section IV.1) 5++00 E0 -#'Times New Roman-.  i62 Risk Control & Decision SupportQ,>Q8>%28]Q22+ 8>>>?>82%Times New Romanq-Times New Roman-.  iQ2 1Select activities to reduce risk or produce equal5+*+*+0+%0 *00++ &00 0 000*+*00+Times New Romanq-.  iI2 m,or greater levels of safety more efficiently0 0 +** +0*%0 &* +0J0 +* ++00Times New Roman-.  i2  (Section IV.2) 5++00 E0  !.Times New Romanq-.  i92 S !Performance Monitoring & FeedbackD22%82]8>22j8>%82>8^D22>>82>Times New Roman-Times New Romanq-.  iN2 /Determine if the risk control decisions produceE+* K0* 0+ %0+00 00+*%00%0 000+*Times New Roman-.  i+2 = Jthe anticipated outcomes0*+0+0**000+0J+%Times New Romanq-.  i2 (Section IV.3) 5++00 E0 --"Systemn-@ "-KK--'--@ "---'--@ "---' "-- Times New Roman-.  2 ORisk EstimationQ,>K+% ]8%8?Times New Romanq-Times New Roman-.  iH2 C+Combine frequency and consequence estimates@0K00+ +00*0+0*00+00%+00+0*+*&K*+%Times New Romanq-.  i-2 into relative risk values00 +*0* %00+0+%Times New Roman-.  i2 p(Section IV.1.5) 5++00 E00  ---u@; "-9o--'-  $HZH --@ "-  --'--@ "---'--@ "---'-  $ss&TNPP &-- }  )  September24,1996@xxvI  v  ڈ (# DRAFT     ~  )  September24,1996@00IV  4  ڈ (# DRAFT  ~  )  September24,1996@(A  22  ڈ F(# DRAFT ( $ Figure  1   ~  )  September24,1996@TTTII  8  ڈ (# DRAFT 0    )  September24,1996@22(III  8  ڈ F(# DRAFT WPC**  ! ƚ/c  Q&  &&TNPP8Q=Pu & TNPP &&TNPP   " "--_Times New Roman%-.  Q2 1Figure IV-2 Progression of a Pipeline Incidentb,PYGG(>t5P((((bGPPGG>?,PY(P5(P(b-YG,,YG(?YG,YGY5 "- @Times New Roman)-.  2 Hazard`V`Uk @Times New Roman%-.  i2 Cause`jKU@Times New Roman)-.  i2 2 AccidentalUU5kUk@`6@Times New Roman%-.  i2 Event`Uk@ @Times New Roman)-.  i2 ImpactKj`V@pTimes New Roman%-.  i2 +Hazardous liquidh@@@0HHH8$((HH(HpTimes New Roman)-.  i2 +or gas containedH0$H@8$@HH(@(H@HpTimes New Roman%-.  i2 y+ and delivered@HH$H@((H@0@HpTimes New Roman)-.  i2 &+ during normalHH0(HH$HH0p@(pTimes New Roman%-.  i2 + operationHH@0@((HHpTimes New Roman)-.  i'2 +Precursor, initiatingP0@@H08H0$$(H(((@((HHpTimes New Roman%-.  i2 +or contributingH0$@HH(0(HH((HHpTimes New Roman)-.  i%2 y+events of a pipeline@H@H(8$H0$@$H(H@((H@pTimes New Roman%-.  i(2 &+incident; start of the(H@(H@H(($8(@0($H0$(H@pTimes New Roman)-.  i2 +accident event@@@(H@H($@H@H(pTimes New Roman%-.  i2 +sequence (e.g.,8@HH@H@@$0@$H$$pTimes New Roman)-.  i2 -+coating disbond,@H@((HH$H(8HHHH$pTimes New Roman%-.  i2 + mechanicalp@@H@H(@@(pTimes New Roman)-.  i2 +damage)H@p@H@0pTimes New Roman%-.  i$2 Loss of containmentXH88$H0$@HH(@(Hp@H(pTimes New Roman)-.  i$2 of hazardous liquidH0$H@@@0HHH8$((HH(HpTimes New Roman%-.  i2 yor gas; productH0$H@8($H0HHH@(pTimes New Roman)-.  i2 &migrates alongp(H0@(@8$@(HHHpTimes New Roman%-.  i"2 available pathways@H@((@H(@$H@(Hh@H8pTimes New Roman)-.  i2  to people,(H$H@HH(@$pTimes New Roman%-.  i2 - environmental@HH(0HHp@H(@(pTimes New Roman)-.  i2 resources, etc.0@8HH0@@8$$@(@$pTimes New Roman%-.  i2 AdversehHH@08@pTimes New Roman)-.  i2 consequences to@HH8@HH@H@@8$(HpTimes New Roman%-.  i2 y people, theH@HH(@$$(H@pTimes New Roman)-.  i!2 &environment, etc.@HH(0HHp@H($$@(@$--"Systemn-@ "---'-  $  --@ "---'-  $\n\ --@ "---'-  $\n\ "-a- aa a1p a1p&TNPP &--2 WPC**N N !N hƚ/c T&N &&TNPP8Q=Pu & TNPP &&TNPP  N   "--Times New Roman-.  2 i Figure IV-3D 8>21,Q%8Times New Roman-.  iT2 K 3The Risk Control & Decision-Support Process ElementUH8 ]#2G ]@G+8@$ k \99#2$@G*HGGG@9+ N9@8922 U$9j9G+ "--  Times New Roman-.  i?2 z{%Identification of Risk Control Issues,>2>%&18&8>8%Q,>Q8>&18 +,+?1,Times New Roman-Times New Roman-.  iE2 )Define the major contributors to risk andE+ 0*0*K+0 +00 000 %0 %0+00Times New Roman-.  iQ2 dQ1opportunities for more efficient control of risks0000 00*& 0 J0 +* ++0*00 00 %0&Times New Roman-.  i2 (Section IV.2.1) 5++00 E00  sITimes New Roman-.  i@2 ^&Identification of Risk Control Options,>2>%&18&8>8%Q,>Q8>&18 W>%8?+Times New Roman-Times New Roman-.  iR2 JA2Define specific alternatives to current design andE+ 0*&0*+ +** 0+0+%0*0 +00*&00+00Times New Roman-.  iQ2 \1operation that reduce risk or increase efficiency00+ *000+ +00+* %00 0+ *+%+* ++0*0Times New Roman-.  i2 0(Section IV.2.2) 5++00 E00  'Times New Roman-.  i:2 \"Evaluation & Comparison of OptionsK88>8% 8>]Q8]?81,8>8&W>%8?+Times New Roman-Times New Roman-.  iK2 -Select the best set of design and operational5+*+0+0*&&*0 0+%00*0000+ +00*Times New Roman-.  iL2 q.practices that produce equal or greater safety0 +**+%0*0 000+*+00*0 0 +*+ %++0Times New Roman-.  i2 (Section IV.2.3) 5++00 E00 -!.Times New Roman-.  i2 CRisk AssessmentQ,>Q+,2+,]2>%Times New Roman-Times New Roman-.  iB2 'Estimate the frequency and consequences;%K++0* +00*0+0+00*00&*00+0*+%Times New Roman-.  i(2 -of potential incidents0 00*0*0*0*0%Times New Roman-.  i2 (Section IV.1) 5++00 E0  !.Times New Roman-.  i92 S !Performance Monitoring & FeedbackD22%82]8>22j8>%82>8^D22>>82>Times New Roman-Times New Roman-.  iN2 /Determine if the risk control decisions produceE+* K0* 0+ %0+00 00+*%00%0 000+*Times New Roman-.  i+2 = Jthe anticipated outcomes0*+0+0**000+0J+%Times New Roman-.  i2 (Section IV.3) 5++00 E0 --"Systemn-@ "---'--@ "-SS--'--@ "---'--{@O "-Mu--'-  $HZH "-- >'Times New Roman-.  u62 Risk Control & Decision SupportQ,>Q8>%28]Q22+ 8>>>?>82%Times New Roman-Times New Roman-.  iQ2 1Select activities to reduce risk or produce equal5+*+*+0+%0 *00++ &00 0 000*+*00+Times New Roman-.  iI2 ,or greater levels of safety more efficiently0 0 +** +0*%0 &* +0J0 +* ++00Times New Roman-.  i2 (Section IV.2) 5++00 E0  ---@ "---'-  $'&TNPP &--4 WPC))  ! ƚ/R{g  [&  &&TNPP8Q=Pu & TNPP &&TNPP     "--_Times New Roman-.  [2 s8Figure IV-4 Risk Control Activities During Progressionb,PYGG(>t5P(((t,?Y(sPY5GP-(sG6,P-5,G?(sYG-YP(aGPPGG?>,PY_Times New Roman-.  (2 x)of a Pipeline IncidentP5(P(b,YG-,YG(?YG,YGY5 "- @Times New Roman-.  2 Hazard`V`Uk @Times New Roman-.  i2 Cause`jKU@Times New Roman-.  i2 2 AccidentalUU5kUk@`6@Times New Roman-.  i2 Event`Uk@ @Times New Roman-.  i2 ImpactKj`V@Times New Roman-.  i2 +Example Types ofD82W82D882,8%Times New Roman-.  i2 + Risk ControlK+8K88&8Times New Roman-.  i2 + ActivitiesQ282+pTimes New Roman-.  i2  PreventionX@@H@P0(HPTimes New Roman-.  i$2 - Corrosion Control+ U@+*@2$@@ U@@$*@$Times New Roman-.  i(2 - Maintenance Programs+ q9$@#9@9@99 G*@@+9c2Times New Roman-.  i!2 - Impact Barriers+ *d@98$ U9+*$9*2--"Systemn-@ "---'-  $  --@ "---'-  $\n\ --@ "---'-  $\n\ "-a- aa a1p a1ppTimes New Roman-.  2  Mitigation(0(HH0(HPTimes New Roman-.  i"2 j- Isolation Valves+ *2@$8$$@@ \9#@92Times New Roman-.  i2 j- Dike / trench+ \$@8 $ $*9@9@Times New Roman-.  i%2 j- Sprinkler / deluge+ G@*$@@$8+ $ @8$@@9pTimes New Roman-.  i2 8Responseh@8PHP8@Times New Roman-.  i2 : -Evacuation+N@98@9$#@@Times New Roman-.  i2 :- Spill response+ G@#$$ *92@@@28Times New Roman-.  i%2 :- Flowpath diversion+ G#@]@9#@ @$@9*2$@@ ---@ "---'-  $&&TNPP &--6 WPC))N N !N ƚU/c ;W&N &&TNPP8Q=Pu & TNPP &&TNPP  N s "--Times New Roman-.  2 i Figure IV-5D 8>21,Q%8Times New Roman%-.  iW2 K5The Performance Monitoring & Feedback Process ElementUH8 O89+@9j@G99 y@G$*@9$G@ j O89GH@8H N9@8922 U$9j9G+ "--  \Times New Roman-.  i92 "A!Selection of Performance Measures>222%8>8&D21&81^8>21j28+?12,Times New Roman%-Times New Roman-.  iU2 4Identify expected outcomes of risk control decisions 0+0 0+00*++000*0K+%0  %0+00 00*+%00%Times New Roman%-.  i(2 and associated metrics+00*&%0++*0K* *&Times New Roman-.  i2 W(Section IV.3.1) 5++00 E00  \Times New Roman%-.  i@2 K&Monitoring & Evaluation of Performancej8>%82?8]K88>8%8?8%D22%82]8>22Times New Roman-Times New Roman%-.  i=2 $Track actual performance and compare; *+0*+0*0+ 0 J+0*++00*0K0++Times New Roman-.  i!2 5:with expectationsE0*00+++00%Times New Roman%-.  i2 T(Section IV.3.2) 5++00 E00   a\Times New Roman-.  i12 Modifications to the Programj8>% 18&8>,%8%>2E18828]Times New Roman%-Times New Roman-.  iN2  /Analyze implications of observed performance toE0+0*+J0*+00%0 00&* 0+00+ 0K+0*+0Times New Roman%-.  iQ2 x 1the models, data, assumptions, and conclusions of0*K00+&0**+%&0J000%+00*00+0%00%0 Times New Roman-.  i02 the risk management program0* %0K+0*0+J+00 00 *KTimes New Roman%-.  i2 ^ '(Section IV.3.3) 5++00 E00 -'Times New Roman-.  i2 2Risk AssessmentQ,>Q+,2+,]2>%Times New Roman%-Times New Roman-.  iB2 'Estimate the frequency and consequences;%K++0* +00*0+0+00*00&*00+0*+%Times New Roman%-.  i(2 of potential incidents0 00*0*0*0*0%Times New Roman-.  i2 (Section IV.1) 5++00 E0 &'Times New Roman%-.  i62 Risk Control & Decision SupportQ,>Q8>%28]Q22+ 8>>>?>82%Times New Roman-Times New Roman%-.  iQ2 1Select activities to reduce risk or produce equal5+*+*+0+%0 *00++ &00 0 000*+*00+Times New Roman-.  iI2 p,or greater levels of safety more efficiently0 0 +** +0*%0 &* +0J0 +* ++00Times New Roman%-.  i2 (Section IV.2) 5++00 E0 - 'Times New Roman-.  i92 !Performance Monitoring & FeedbackD22%82]8>22j8>%82>8^D22>>82>Times New Roman%-Times New Roman-.  iN2 /Determine if the risk control decisions produceE+* K0* 0+ %0+00 00+*%00%0 000+*Times New Roman%-.  i+2 Bthe anticipated outcomes0*+0+0**000+0J+%Times New Roman-.  i2 z (Section IV.3) 5++00 E0  --"Systemn-@ "---'-  $oHo --2@0 "-.,--'-  $6 --c @ "-] --'--@ "-[ [ --'-  $ [ - L[  --@ "---'-  $L --@ "-ww--'-  $wILw&TNPP &-- f  )  September24,1996@QQ)V1 F(# DRAFT 9 WPC))N N !N ƚU/c ;W&N &&TNPP8Q=Pu5 & TNPP &&TNPP  N s "--Times New Roman%-.  2 i Figure IV-5D 8>21,Q%8Times New Roman%-.  iW2 K5The Performance Monitoring & Feedback Process ElementUH8 O89+@9j@G99 y@G$*@9$G@ j O89GH@8H N9@8922 U$9j9G+ "--  \Times New Roman%-.  i92 "A!Selection of Performance Measures>222%8>8&D21&81^8>21j28+?12,Times New Roman%-Times New Roman%-.  iU2 4Identify expected outcomes of risk control decisions 0+0 0+00*++000*0K+%0  %0+00 00*+%00%Times New Roman%-.  i(2 and associated metrics+00*&%0++*0K* *&Times New Roman%-.  i2 W(Section IV.3.1) 5++00 E00  \Times New Roman%-.  i@2 K&Monitoring & Evaluation of Performancej8>%82?8]K88>8%8?8%D22%82]8>22Times New Roman%-Times New Roman%-.  i=2 $Track actual performance and compare; *+0*+0*0+ 0 J+0*++00*0K0++Times New Roman%-.  i!2 5:with expectationsE0*00+++00%Times New Roman%-.  i2 T(Section IV.3.2) 5++00 E00   a\Times New Roman%-.  i12 Modifications to the Programj8>% 18&8>,%8%>2E18828]Times New Roman%-Times New Roman%-.  iN2  /Analyze implications of observed performance toE0+0*+J0*+00%0 00&* 0+00+ 0K+0*+0Times New Roman%-.  iQ2 x 1the models, data, assumptions, and conclusions of0*K00+&0**+%&0J000%+00*00+0%00%0 Times New Roman%-.  i02 the risk management program0* %0K+0*0+J+00 00 *KTimes New Roman%-.  i2 ^ '(Section IV.3.3) 5++00 E00 -'Times New Roman%-.  i2 2Risk AssessmentQ,>Q+,2+,]2>%Times New Roman%-Times New Roman%-.  iB2 'Estimate the frequency and consequences;%K++0* +00*0+0+00*00&*00+0*+%Times New Roman%-.  i(2 of potential incidents0 00*0*0*0*0%Times New Roman%-.  i2 (Section IV.1) 5++00 E0 &'Times New Roman%-.  i62 Risk Control & Decision SupportQ,>Q8>%28]Q22+ 8>>>?>82%Times New Roman%-Times New Roman%-.  iQ2 1Select activities to reduce risk or produce equal5+*+*+0+%0 *00++ &00 0 000*+*00+Times New Roman%-.  iI2 p,or greater levels of safety more efficiently0 0 +** +0*%0 &* +0J0 +* ++00Times New Roman%-.  i2 (Section IV.2) 5++00 E0 - 'Times New Roman%-.  i92 !Performance Monitoring & FeedbackD22%82]8>22j8>%82>8^D22>>82>Times New Roman%-Times New Roman%-.  iN2 /Determine if the risk control decisions produceE+* K0* 0+ %0+00 00+*%00%0 000+*Times New Roman%-.  i+2 Bthe anticipated outcomes0*+0+0**000+0J+%Times New Roman%-.  i2 z (Section IV.3) 5++00 E0  --"Systemn-@ "---'-  $oHo --2@0 "-.,--'-  $6 --c @ "-] --'--@ "-[ [ --'-  $ [ - L[  --@ "---'-  $L --@ "-ww--'-  $wILw&TNPP &--; WPC))  !  ƚ/d y]&  &&TNPP8Q=Pu & TNPP &&TNPP   i  "--_Times New Roman-.  ]2 9Figure IV-6 Performance Measures Associated with Stagesb,PYGG(>t5P(((bGG5PGPYGG(GP>YGG>(t>>PG-P5GY(t,5Y(Y6PPG>_Times New Roman%-.  (2 x)of a Pipeline IncidentP5(P(b,YG-,YG(?YG,YGY5 "- @Times New Roman-.  2 Hazard`V`Uk @Times New Roman%-.  i2 Cause`jKU@Times New Roman-.  i2 2 AccidentalUU5kUk@`6@Times New Roman%-.  i2 Event`Uk@ @Times New Roman-.  i2 ImpactKj`V@Times New Roman%-.  i2 +ExampleD82W82Times New Roman-.  i2 + Performance>2%&8%W2812Times New Roman%-.  i2 +Measuresd12,8%2+pTimes New Roman-.  i2  PreventionX@@H@P0(HPTimes New Roman%-.  i!2 Hydrotest Results\@@+@$82$ U92@#$2--"Systemn-@ "---'-  $  --@ "---'-  $\n\ --@ "---'-  $\n\ "-a- aa a1p a1ppTimes New Roman-.  2  Mitigation(0(HH0(HPTimes New Roman%-.  i+2 jReliability of IsolationU9$#9@$#$#@ @+ +1@$9#$@@Times New Roman-.  i2 jValves\9$@91pTimes New Roman%-.  i2 8Responseh@8PHP8@Times New Roman-.  i2 :Effectiveness ofN+*99$#@9@921 @+Times New Roman%-.  i2 :Emergency DrillsNd9*@9@9@ \+#$$1 ---@ "---'-  $&&TNPP &--Level 1Level 2Level 3Level 4Level 5(3$ !  (3$ !  ($$   1  PP' dxdP Pd !  ݛ   XTsXXX   X XTs  8TsXXdd8# XTsX  Y# vvX XTsRiskManagementProgramStandard# XTsXv v#  @  LX XTsForUseinthePipelineRiskManagementDemonstrationProgram# XTsX L[# @   ] X XTsProducedby H TheJointRiskManagementProgramStandardTeam# XTsX  ]# X ̜TheOfficeofPipelineSafetyAmericanPetroleumInstituteInterstateNaturalGasAssociationofAmericaNationalAssociationofRegulatoryUtilityCommissionsNationalAssociationofPipelineSafetyRepresentativesGasResearchInstitute  R X XTsDRAFT# XTsX  R#  (# September24,1996  4,'! # ] X XTsContents# XTsX  ]O#ԛ  МxӜ !!G(#Page L  I.0  Introduction #""G(#.H H (#(##I1 ^ 0  I.1 ` Background#""G(#.d d (#(##I1   0  I.2 ` Purpose#""G(#.  (#(##I2 ( x 0  I.3 ` Applicability#""G(#. "(#(##I2    0  I.4 ` Scope#""G(#. (#(##I3  <  0  I.5 ` GuidingPrinciples#""G(#.HH'(#(##I5 N  0  I.60` (#(#OrganizationofThisStandard#""G(#.2` (#` (##I7    II.0  OverviewofaRiskManagementProgram #!!F(#.LL5(#(##II1 LX XTsԈ t # XTsX LF#0  II.10` (#(#ProgramElementsOverview#!!F(#..` (#` (##II1 , 0  II.2 ` ProcessElementsOverview#!!F(#.-(#(##II3 > 0  0` (#(#II.2.1 RiskAssessment#!!F(#.  )` (#` (##II4  0  0` (#(#II.2.2 RiskControlandDecisionSupport#!!F(#.;` (#` (##II5 R 0  0` (#(#II.2.3 PerformanceMonitoringandFeedback#!!F(#.  =` (#` (##II6 d  III.0  RiskManagementProgramElements #!!E(#.0(#(##III1 (x" 0  III.10` (#(#Administration#!!E(#.00#` (#` (##III1 $ М0  0` (#(#III.1.1 RolesandResponsibilities#!!E(#.4` (#` (##III1 B& 0  0` (#(#III.1.20 ` (#` (#PersonnelQualifications#!!F(#.pp2 (# (##III1 T!( 0  0` (#(#III.1.30 ` (#` (#ManagementofChange#!!E(#.TT. (# (##III1 "* ̛0  III.20` (#(#Communication#!!E(#."` (#` (##III2 z% . 0  III.30` (#(#Documentation#!!E(#.\\"` (#` (##III2 &,"0 0  III.40` (#(#ProgramEvaluationandImprovement#!!E(#.xx7` (#` (##III3  >(#2  ] X XTs @ Contents(Continued) # XTsX  ]Z#Ԉ  !!G(#Page  М IV.0  RiskManagementProcessElements #x!x!F(#.@@0(#(##IV1 "r 0  IV.10` (#(#RiskAssessment#x!x!F(#.$` (#` (##IV1   0  0` (#(#IV.1.10 ` (#` (#ScopingandScreeningAnalysis#!!G(#.8 (# (##IV1  < 0  0` (#(#IV.1.20 ` (#` (#EventIdentification#x!x!F(#.  . (# (##IV2 N   0  0` (#(#IV.1.30 ` (#` (#FrequencyAnalysis#x!x!F(#., (# (##IV4   0  0` (#(#IV.1.40 ` (#` (#ConsequenceAnalysis#x!x!F(#.. (# (##IV5 b  0  0` (#(#IV.1.50 ` (#` (#RiskEstimation#x!x!F(#.) (# (##IV6 t  ̛0  IV.20` (#(#RiskControlandDecisionSupport#x!x!F(#.LL5` (#` (##IV7 8 0  0` (#(#IV.2.10 ` (#` (#IdentificationofRiskControlIssues#x!x!F(#.((? (# (##IV7  0  0` (#(#IV.2.20 ` (#` (#IdentificationofRiskControlOptions#x!x!F(#.@ (# (##IV8 L 0  0` (#(#IV.2.30 ` (#` (#EvaluationandComparisonofRiskControlOptions#!!E(#.88K (# (##IV11 ^ 0  0` (#(#IV.2.40 ` (#` (#SelectionofRiskControlOptions#!!E(#.xx; (# (##IV12  М̛0  IV.30` (#(#PerformanceMonitoringandFeedback#!!E(#.8` (#` (##IV12   0  0` (#(#IV.3.10 ` (#` (#SelectionofPerformanceMeasures#!!E(#.; (# (##IV13 6" 0  0` (#(#IV.3.20 ` (#` (#MonitoringandEvaluatingPerformance#!!E(#.hh? (# (##IV16 H$ 0  0` (#(#IV.3.30 ` (#` (#ModificationstotheRiskManagementProgram#!!E(#.F (# (##IV16 &  V.0  Conclusions #!!H(#.@ @ (#(##V1 n"*  ̜AppendixA.JointRiskManagementProgramStandardTeam !!G(#.CA1  8% .    ] X XTs Figures  Ӝ # XTsX  ]#!!G(#Page  МI1.0  ThePipelineRiskManagementProject#""G(#.TT4(#(##I4 "r ̜II1.0  RiskManagementProgramOverview#!!G(#.0(#(##II2  6 IV1.0  ProgressionofaPipelineIncident#!!G(#.2(#(##IV3    IV2.0  RiskControlActivitiesDuringProgressionofaPipelineIncident#x!x!F(#.``Q(#(##IV9 n  МIV3.0  PerformanceMeasuresAssociatedwithStagesofaPipelineIncident#!!E(#.R(#(##IV14  ] X XTs  Contents# XTsX  ]U#t !!G(#Page 8  I.0  Introduction #""G(#.H H (#(##I1 J  0  I.1 ` Background#""G(#.d d (#(##I1   0  I.2 ` Purpose#""G(#.  (#(##I2  d  0  I.3 ` Applicability#""G(#. "(#(##I2 v   0  I.4 ` Scope#""G(#. (#(##I3 (  0  I.5 ` GuidingPrinciples#""G(#.HH'(#(##I5 :  0  I.60` (#(#OrganizationofThisStandard#""G(#.2` (#` (##I7    II.0  OverviewofaRiskManagementProgram #!!F(#.LL5(#(##II1 LX XTsԈ ` # XTsX LS!#0  II.10` (#(#ProgramElementsOverview#!!F(#..` (#` (##II1  0  II.2 ` ProcessElementsOverview#!!F(#.-(#(##II3 *z 0  0` (#(#II.2.1 RiskAssessment#!!F(#.  )` (#` (##II4  0  0` (#(#II.2.2 RiskControlandDecisionSupport#!!F(#.;` (#` (##II5 > 0  0` (#(#II.2.3 PerformanceMonitoringandFeedback#!!F(#.  =` (#` (##II6 P  III.0  RiskManagementProgramElements #!!E(#.0(#(##III1 d# 0  III.10` (#(#Administration#!!E(#.00#` (#` (##III1 |% 0  0` (#(#III.1.1 RolesandResponsibilities#!!E(#.4` (#` (##III1  .' 0  0` (#(#III.1.20 ` (#` (#PersonnelQualifications#!!F(#.pp2 (# (##III1 @") 0  0` (#(#III.1.30 ` (#` (#ManagementofChange#!!E(#.TT. (# (##III1 #+ 0  III.20` (#(#Communication#!!E(#."` (#` (##III2 f&!/ 0  III.30` (#(#Documentation#!!E(#.\\"` (#` (##III2 '#1 0  III.40` (#(#ProgramEvaluationandImprovement#!!E(#.xx7` (#` (##III3  *)z$3  ] X XTs @ Contents(Continued) # XTsX  ]D(# ] X XTsԈ  # XTsX  ](#!!G(#Page   IV.0  RiskManagementProcessElements #x!x!F(#.@@0(#(##IV1 "r 0  IV.10` (#(#RiskAssessment#x!x!F(#.$` (#` (##IV1   0  0` (#(#IV.1.10 ` (#` (#ScopingandScreeningAnalysis#!!G(#.8 (# (##IV1  < 0  0` (#(#IV.1.20 ` (#` (#EventIdentification#x!x!F(#.  . (# (##IV3 N   0  0` (#(#IV.1.30 ` (#` (#FrequencyAnalysis#x!x!F(#., (# (##IV6   0  0` (#(#IV.1.40 ` (#` (#ConsequenceAnalysis#x!x!F(#.. (# (##IV7 b  0  0` (#(#IV.1.50 ` (#` (#RiskEstimation#x!x!F(#.) (# (##IV7 t  0  IV.20` (#(#RiskControlandDecisionSupport#x!x!F(#.LL5` (#` (##IV8 8 0  0` (#(#IV.2.10 ` (#` (#IdentificationofRiskControlIssues#x!x!F(#.((? (# (##IV8  0  0` (#(#IV.2.20 ` (#` (#IdentificationofRiskControlOptions#!!E(#.@ (# (##IV10 L 0  0` (#(#IV.2.30 ` (#` (#EvaluationandComparisonofRiskControlOptions#!!E(#.88K (# (##IV13 ^ 0  0` (#(#IV.2.40 ` (#` (#SelectionofRiskControlOptions#!!E(#.xx; (# (##IV14  0  IV.30` (#(#PerformanceMonitoringandFeedback#!!E(#.8` (#` (##IV15   0  0` (#(#IV.3.10 ` (#` (#SelectionofPerformanceMeasures#!!E(#.; (# (##IV17 6" 0  0` (#(#IV.3.20 ` (#` (#MonitoringandEvaluatingPerformance#!!E(#.hh? (# (##IV19 H$ 0  0` (#(#IV.3.30 ` (#` (#ModificationstotheRiskManagementProgram#!!E(#.F (# (##IV20 &  V.0  Conclusions #!!H(#.@ @ (#(##V1 n"*  AppendixA.JointRiskManagementProgramStandardTeam !!G(#.CA1  8% .    ] X XTs Figures  '3 # XTsX  ]33#!!G(#Page  I1.0  ThePipelineRiskManagementProject#""G(#.TT4(#(##I4 "r II1.0  RiskManagementProgramOverview#!!G(#.0(#(##II2  6 IV1.0  TheRiskAssessmentProcessElement#!!G(#.003(#(##IV2    IV2.0  ProgressionofaPipelineIncident#x!x!F(#.xx1(#(##IV4 n  IV3.0  TheRiskControlandDecisionSupportProcessElement#x!x!F(#.E(#(##IV9 2 IV4.0  RiskControlActivitiesDuringProgressionofaPipelineIncident#H!H!F(#.``Q(#(##IV11 F IV5.0  ThePerformanceMonitoringandFeedbackProcessElement#!!E(#.G(#(##IV16   IV6.0  PerformanceMeasuresAssociatedwithStagesofaPipelineIncident#!!E(#.R(#(##IV18  ~  =TsXdd=#(ew֛ ] X XTs XX I.   ` Introduction # XTsX  ]o8#    LX XTsI.1   ` Background# XTsX L'9# L  ThefirstpriorityoftheUnitedStatespipelineindustry,theOfficeofPipelineSafety,andstate L pipelineregulatorsistoprotectthepublic,theenvironment,andpropertywhilemaintaininganefficientandreliablepipelinesystem.Currently,theprimaryregulatorybasisforachievingthesesafetygoalsinthepipelineindustryisthesetofregulationsembodiedinTitle49oftheCodeofFederalRegulationsParts190199.Inaddition,pipelinecompaniesperformmanydiscretionaryactivitiesoverandabovetheregulationstoachievethesegoals.Boththeindustryandregulatorsarelookingforalternativeapproachestofurtherimprovesafetyincosteffectiveways. Safetyistheprotectionofthepublic,theenvironment,andproperty. Riskisanythreattoachievingthosegoals.Boththeindustryandregulatorsbelievethatriskmanagementhasthepotentialtoprovideavaluabletooltohelpfurtherimprovesafetyandallocateresourcescosteffectively,by0  0` (#(#AnalyzingtheprecursoreventsandcausesofpotentialpipelineincidentsH` (#` (# 0  0` (#(#Examiningboththelikelihoodandseverityofpotentialpipelineincidents ` (#` (# 0  0` (#(#Providingacomprehensiveandintegratedmeansforexaminingandcomparingthe  completespectrumofrisksandprevention/mitigationstrategies ` (#` (# 0  0` (#(#Providingastructured,easilycommunicatedmeansforidentifyingandprioritizing l pipelinerisksandriskreductionmeasures ` (#` (# 0  0` (#(#Establishingandtrackingperformancemeasurestoensuresafetyimprovement.0` (#` (# Theindustryandregulatorsformedtwopartnershipteamstoinvestigatethepotentialapplicationofriskmanagementwithinthepipelineindustry.TheLiquidRiskAssessmentQualityTeam(RAQT),jointlysponsoredbytheOfficeofPipelineSafety(OPS)andtheAmericanPetroleumInstitute(API),examinedthepotentialuseofriskmanagementwithinthehazardousliquidpipelineindustry.TheGasRiskAssessmentQualityTeam,jointlysponsoredbytheOPSandtheInterstateNaturalGasAssociationofAmerica(INGAA),examinedthepotentialuseofriskmanagementwithinthenaturalgaspipelineindustry.Bothteamsconcludedthatriskmanagementhadthepotentialtoproduceequalorgreaterlevelsofsafetyinamorecosteffectivemannerthanthecurrentregulatoryscheme,butrecommendedthatamultiyearRiskManagementDemonstrationProjectbeimplementedtodeterminethefeasibilityofriskmanagementprogramsandtoascertainthepracticalbenefitsthatcanbederivedfromsuchprograms.Theseteams'recommendationswerediscussedinapublicconferenceonriskmanagementinNovember1995.ThisconferenceresultedinacceptanceoftheRiskManagementDemonstrationProjectwiththestipulationthatastandardbedevelopedthatwoulddefinethenecessaryelements ,@(+ andcharacteristicsofariskmanagementprogram.AsaresultoftheNovember1995riskmanagementconference,ajointriskassessmentqualityactionteam(JRAQT)wasformedtodeveloptheriskmanagementdemonstrationprogramstandard.  LX XTsI.2   ` Purpose # XTsX LG# ` ̜Theprogramstandardisintendedtoserveasacommonrationalbasisuponwhichthepipeline `  industryanditsregulatorscaninteractivelydevelop,assess,andrefineeffectiveriskmanagementprogramsandproposals.Itisnotintendedtoprovideadetailedinstructionmanualthatcanbefollowedbyrotebypipelinecompaniestodevelopaprogramorproposal,orachecklistforOPStousetoreviewcompanyriskmanagementproposals.ThisprogramstandarddefinestheprogramandprocesselementsofacomprehensiveriskmanagementprogramthatallRiskManagementDemonstrationProjectproposalsshallcontain.Atthesametime,thestandardallowsflexibilitytoeachcompanytocustomizeitsriskmanagementprogramtofititsparticularneedsandcorporatepractices,providedthattheprogramsupportsthescopeandgoalsofthedemonstrationprojectproposal.Thisprogramstandardalsoincludesanevaluationandimprovementelementthatenablesprogramstoevolveasexperienceisgained.Thisprogramstandardplaysanimportantroleinthepipelineindustry'sriskmanagementdemonstrationprogram.Thisprogramstandard,bydescribingthenecessarybasicelementsandcharacteristicsofapipelinecompanyriskmanagementprogram,istobeusedby  0 ` Individualpipelinecompaniesthataredevelopingriskmanagementprogramsfor H internaluse ` (#` (# 0  0` (#(#Individualpipelinecompaniesthataredevelopingspecificproposalstosubmitfor   considerationintheRiskManagementDemonstrationProject ` (#` (# ̀  0 ` OPSasabasisfordevelopingtheprocessesitwillusetoreviewriskmanagement   programsandapprovespecificRiskManagementDemonstrationProjectproposalssubmittedbyindividualcompanies. ` (#` (# Л  LX XTsI.3   ` Applicability # XTsX L9O# %l # Thisprogramstandardwillbeupdatedandrefinedaslessonsarelearnedfromthedemonstrationprogram.Itisanticipatedthatthisprogramstandardwillprovideastartingpointforthedevelopmentofoneormorenationalconsensusstandardsorindustryrecommendedpractices.Thisprogramstandardisapplicabletoriskmanagementprogramsthatincludeanydesignatedportion,ortheentiretyofanyhazardousliquidornaturalgaspipelinesystemandallassociateddesign,construction,testing,operations,maintenance,andabandonmentactivities.Apipeline ,'+ systemincludesallphysicalfacilitiesthroughwhichhazardousliquidsorgasmovesintransportation,including,butnotlimitedto,pipe,valves,otherappurtenancesattachedtopipe,pumpingunits,compressorunits,meteringstations,regulatorstations,deliverystations,holders,breakouttanks,andfabricatedassemblies.Inadditiontothisstandard,theRiskManagementDemonstrationProjectrequiresaregulatoryreviewandapprovalprocess(theRegulatoryFramework),andidentificationofDemonstrationProjectPerformanceMeasureswhichwillbeusedtoevaluatetheeffectivenessofriskmanagementasaregulatoryalternative.FigureI1showstherelationamongtheProgramStandard,theRegulatoryFramework,andtheDemonstrationProjectPerformanceMeasures.EvenifacompanysproposalfortheDemonstrationProjectincludesalltheelementsdescribedinthisStandard,participationintheDemonstrationProjectisatthediscretionofOPS,consistentwiththeconditionsdetailedintheRegulatoryFramework.  LX XTsI.4   ` Scope # XTsX LV#   Thisprogramstandardoutlinesacomprehensiveriskmanagementprogram,including  0 ` Theapplicationofriskmanagementtoanyorallportionsofthepipelinelifecycle,  includingdesign,construction,testing,operations,maintenance,andabandonment ` (#` (#   0 ` Thecompleteriskmanagementprocess,includingriskassessment,riskcontroland \ decisionsupport,andperformancemonitoringandfeedback ` (#` (#   0 ` Theintegrationofriskmanagementintothecorporation'sbusinesspractices,  p includingadministration,communication,documentation,andprogramevaluation.  \` (#` (# TRO'3 Letter Landscape3''3 Letter Landscape3'T/k7'#`<0* `-xE0*0*ee*Fk ..                                   /  TRX3' LetterO'3 Letter Landscape3' Letter'3 Letter LandscapeT    LX XTsI.5   ` GuidingPrinciples # XTsX L`#   Thefollowingguidingprinciplesdescribetheoverridingattributesandcharacteristicsthatallriskmanagementprogramsshouldexhibit.Theseguidingprinciplesarereflectedintheindividualsectionsofthestandard,andcanbeusedbydevelopersandreviewersofriskmanagementprogramstoplaceinappropriatecontexttheindividualportionsofthisstandardandtohelpensurethattheexpectedoutcomesoftheintegratedprogramwillbeachievedbythecollectiveeffectoftheprogram'sindividualparts. L  1.0  RiskManagementisacomprehensivemanagementdecisionsupportprocess, $ t  implementedasaprogram,integratedthroughdefinedrolesandresponsibilitiesintothedaytodayoperations,maintenance,engineering,management,andregulatorydecisionsoftheoperator.8 (#(# 0  Riskmanagementproduces,structures,andpresentsthebestavailableriskinformationtosupportandfacilitatebettermanagementdecisionmaking. (#(# 0  Riskmanagementallowsmanagementdecisionsandtheirbasestobemoreeasilycommunicated. (#(# 0  Riskmanagementisacomprehensivemanagementdecisionmakingprocessthatincludestheidentificationandanalysisofrisks;theidentification,analysis,andselectionofalternativemeasurestocontrolrisks;andthesubsequentassessmentofperformance. (#(# 0   (#(# 0  Riskmanagementdoesnotreplacepipelinecompanymanagersorregulatorswithcomputermodels.Corporatemanagersandregulatorsmakedecisions.Thesedecisionsareaidedby,butnotdictatedby,technicalmodelsandquantitativeanalyses. (#(# 0  Riskmanagementisanintegrativeprocess,allowingoperatorsandregulatorstoaddressmultipleaspectsandpracticesofpipelinedesign,construction,testing,operation,Ϝmaintenance,andabandonmentinacombined,holisticwaytomaximizeoverallbenefits. (#(# 0  Riskmanagementisacontinuousprocess,withinitialoutputfromanyportionoftheprocessoftenbeingupdatedandrefinedusinginformationfedbackfromsubsequentportionsoftheoveralldecisionmakingandimplementationprocess. (#(# 0  Riskmanagementrequirescorporatemanagementleadership,commitment,andaccountability.Clearlinesofresponsibilityandaccountabilityforriskmanagementneedtobeestablishedfromthehighestlevelofmanagementdown. (#(# 2.0  Riskcanbecontrolledthroughthecosteffectiveapplicationoffiniteresources.+&*(#(#   |,'+ 0  Riskmanagementinherentlyinvolvessubjectivetradeoffsamongdifferent,andoften   competing,goals. (#(# 0  Riskmanagementlogicallystructures,bringsconsistencyto,documents,andclarifiesthetradeoffsofrisks,uncertainties,andbenefitsamongcompetingalternatives. (#(# 0  Riskmanagementallowsexperiencedoperatorsandregulatorstoapplybestengineeringpracticesandjudgmenttodevelopintegratedsolutionstopipelinesafetyproblemsasanalternativetoeventdriven,regulatorydictatedsolutions. (#(# 3.0  Riskcannotbetotallyeliminated. 8 (#(# 0  Riskisaninherentpartoflifeandisassociatedwithallindustrialactivities. (#(# 0  Theoverallriskofapipelinecanbereduced,controlled,oraltered,butitcannotbereducedtozero. (#(# 0  Theprocessorresultofreducingrisksofonesourceortypecanaffectrisksofanothersourceortype. (#(# 4.0  Riskmanagementincreases,integrates,andenhancesthevalueofinformation  p concerningpipelinesafety. (#(# 0  Riskmanagementrequiressuitableandsufficientdatatobedevelopedandmaintained 4 concerningsystemdesignandoperationalcharacteristics,includingreliabilityandmaintenancehistoriesofpipelinesystemcomponents.Inmanycasesthisinformationexceedsthatwhichiscurrentlydeveloped,maintained,andreported. (#(# 0  Riskmanagementaddressesboththelikelihoodandconsequencesofpipelineincidents.In  thiscontext, incidentsreferstounwantedeventssuchasunintendedreleases,leaks,andnearmisses. (#(# 0  Riskmanagementaddressestheentirelifecycleofthepipelinesystem,consideringtheinterfacesanddependenciesamongpipelinedesign,construction,operation,andmaintenance. (#(# 0  Riskmanagementexaminestheentirespectrumofrisks,fromtherelativelyfrequentminoreventsthatposelittleornorisk,totheverylowprobabilityincidentsthatcouldcausesignificantharm. (#(# 0  Riskmanagementidentifiesandassessestherelativemeritsofactivitiestoreducethelikelihoodofincidentsaswellasactivitiestomitigatetheconsequencesofincidentsshouldtheyoccur. (#(#   T,'+ 0  Byplacingeachsourceofriskinitsproperperspective,andbydepictingtherelative impactofpotentialriskreductionmeasuresonoverallrisk,riskmanagementcanfacilitatecommunicationamongoperators,regulators,andthepublicconcerningthenatureofpipelinerisksandtherationalbasisfordecisionsonhowtomanagetheserisks. (#(# 5.0  Riskmanagementprogramsarestructuredbutflexible,allowingcustomizedapproaches L  tobedevelopedforspecificissuesandsituations,encouraginginnovation,andsupportingcontinuousimprovement. (#(# 0  Therearenumerouslevelsofdetailandmodelcomplexitythatcanbebeneficiallydevelopedandimplementedwithinariskmanagementprogram.Thetechnicalmodelsusedwithintheprogramshouldbecommensuratewiththelevelandtypeoftherisksbeinganalyzed,andshouldbecapableofgeneratingthelevelofinformationdetailandconfidenceneededtosupportthespecificdecisionsbeingmade. (#(# 0  Riskmanagementprogramsshouldbeimplementedasongoing, livingprograms,evolvingandcontinuouslyimprovingasexperienceisgainedandnewdataareobtained. (#(# 6.0  Theimplementationofariskmanagementprogramshouldresultinalevelofpublic H safetyandenvironmentalprotectionequaltoorgreaterthanthatwhichexistedpriortoimplementationoftheprogram. (#(# 0  Riskmanagementprogramsincludeperformancemeasuresandcallforexplicitandvisiblemonitoring,tracking,andreportingofprogressagainstexpectedoutcomes. (#(# 0  Riskmanagementprograms,data,andresultsarestructuredinamannerthatcanbeaudited. (#(#  LX XTs 1.6   ` OrganizationofThisStandard # XTsX L}#  Thisstandardpresentsasummaryoverviewofriskmanagementprogramsandprocesses(SectionII),followedbyadetailedexplanationofprogramelements(SectionIII)andprocesselements(SectionIV).Itconcludeswithastatementofimplicationsforindustry,thepublic,andtheregulatorycommunity.ArosteroftheProgramStandardTeamappearsinAppendixA.  D#! М(-lo ] X XTs II.   ` OverviewofaRiskManagementProgram # XTsX  ]/#  Ariskmanagementprogramcanbestructuredinmanyways,butallprogramsshallcontainthekeyprogramandprocesselementsdescribedbelow(seeFigureII1). 8   LX XTsII.1   ` ProgramElementsOverview# XTsX L#ԛ    Programelementsarethoseportionsoftheoverallcorporateprogrammaticinfrastructurethat   ensurethatriskmanagementisdevelopedandimplementedasanintegralpartofthedaytodaybusinesspracticesofthecompany.Thosecorporateprogrammaticinfrastructureelementsinclude0  0` (#(# Administration. Corporatepoliciesandadministrativeproceduresshallinclude p  theimplementationofriskmanagementprograms,includingassignmentofrolesandresponsibilitiesforriskmanagementactivities.Theprocessesusedbythecorporationtoensurepersonnelqualificationsshallensurethatindividualshavethenecessaryexperienceandskillstoperformtheirriskmanagementrolesandresponsibilitiesinahighqualitymanner. ` (#` (# 0  0` (#(# Communication. Theorganization'sinternalcommunicationprocessesshall 8 ensurethatinformationconcerningthegoalsoftheriskmanagementprogram,structureandprocesses,relevantinputdata,andriskmanagementresultsanddecisionsarecommunicatedthroughouttheorganization.Theorganization'sexternalcommunicationprocessesshouldensurethatregulatorandotherstakeholderinterestsandconcernsrelativetoriskmanagementareconsidered,andthatriskmanagementprogramgoalsandresultsarecommunicatedtoanddiscussedwithFederal,State,andlocalregulators,thepublic,andotherstakeholdersasappropriate. ` (#` (# 0  0` (#(# Documentation. Theorganization'sdocumentationprocessesandsystemsshall $t includetheacquisition,processing,storing,andreportingofriskmanagementdataandinformation. ` (#` (# 0  0` (#(# ProgramEvaluationandImprovement. Theorganization'sprogramevaluation "(  processesandsystemsshallensurethattheriskmanagementprogram'sactivities,decisions,andresultsarecontinuallymonitored,toassessprogressinmanagingrisk,andtoimprovetheoverallriskmanagementprogram. ` (#` (# RiskManagementProgramElementsareaddressedindetailinSectionIIIofthisprogramϜstandard.  d(#&  LX XTs TRO'3 Letter LandscapeX3' Letter'3 Letter Landscape3' LetterTk7'#`<A$ `-%EA$A$ee$k <).<)... <).<). TRX3' LetterO'3 Letter Landscape3' Letter'3 Letter Landscape TII.2   ` ProcessElementsOverview # XTsX L8#  Riskmanagementprocesselementsarethetechnicalandanalyticalportionsofariskmanagementprogramneededtoassessrisks,identifypossiblewaystocontroltheserisks,allocateresourcestocontrolrisks,monitorperformance,andapplyinformationlearnedtoimprovetheprocess.FigureII1depictsthemajorriskmanagementprocesselements.Althoughthereisanatural,logicalflowtotheprocesselements,riskmanagementprogramsare,inpractice,iterativeprocesseswithconsiderableinteractionandfeedbackamongtheprocesselements.Initialriskassessmentactivitiesmaybeexpandedorreexaminedbasedontheoutcomeofsubsequentactivitiestodefineeffectiveriskcontrolmeasures.Themonitoringofperformancemaysuggestthatinitialassumptionsordatawereinadequate,andneedtobeupdatedorrethought.Ariskmanagementprogramisadynamicprocess,whichcontinuallydevelopsnewdataandinformationthatcanbeusedineachstepoftheprocesstomakeimprovedandbetterinformeddecisions.Thefirstkeystepofariskmanagementprogramisdefiningthescopeoftheprogram.Theinitialscopedefinitionincludes  0 ` Thephysicalboundariesofthepipelinesystemthatwillbeaddressedp` (#` (#   0 ` Theportionsofthelifecyclethatwillbeaddressed(e.g.,willdesignand H constructionissuesbeexamined,orwillthestudyfocusonoperationalandmaintenanceproblemsandsolutions?) ` (#` (#   0 ` Thebreadthoftheanalyses(e.g.,willalltypesoffailuremodesandpotential H solutionsbeconsidered,orwilltheprogramfocusonspecifictypesoffailuremodes?). ` (#` (# Thescopeoftheprogramshallbeconsistentwiththegoalsofthecompany'sriskmanagementprogram.Ascreeninglevelriskassessment(seenextsection)canoftenbeeffectivelyusedtohelpfocusthescopeoftheriskmanagementprogramonthemostimportantissuesandopportunitiesforimprovement.Limited,focusedscoperiskmanagementprogramsare,infact,oftenaprudentwayofintroducingariskmanagementprogramintoanorganization,allowingexperienceandskillstobedevelopedinacontrolledmanner.However,thescopeoftheriskmanagementprogramshallconsidersystemcomponentsandfailuremodesthathaveasignificanteffectonriskmanagementconclusionsanddecisions.  %l # ЛQ=~n v &~.6!#>&(*XQ II.2.1   ` RiskAssessment   TheRiskAssessmentportionofariskmanagementprogramaddressesthefollowingbasic  questions:   Whatadverseeventscanhappen?  L      0 ` Whattypesofadverseconsequencesareofconcernandwillbeaddressedbythe $ t riskmanagementprogram? ` (#` (# 0    0` (#(#Whateventorseriesofeventswouldhavetooccurtocausetheseundesirable  8  consequences? ` (#` (#     0 ` Howcouldtheseeventsoccur(i.e.,whatarethelogicalcombinationsofpossible   contributingcausesthatwouldresultintheseevents)? ` (#` (#   Howlikelyaretheseeventstooccur?  p   Howseverewouldtheconsequencesbeiftheeventsdidoccur?  H     0 ` Giventheoccurrenceoftheevent(s),whatarethespecificphysicalmechanismsor  p pathwaysbywhichtheeventcouldleadtoharmtothepublic,employeesandcontractors,theenvironment,privateandpublicproperty,orothervaluedentities? ` (#` (#     0 ` Whatwouldbetheexpectedsizeorseverityofthereleaseofhazardousmaterial   fromtheevent? ` (#` (#     0 ` Whatwouldbethenatureandseverityoftheimpactoftheevent(s)onthepublic,  employeesandcontractors,theenvironment,privateandpublicproperty,orothervaluedentities? ` (#` (# Inputstotheriskassessmenttypicallyincludedataandinformationaboutthedesignandageofthepipe,thesoilsurroundingthepipelineandotherexternalfactors,operationalandmaintenancepractices,operatinghistory,testhistory,inspectionfindings,andtheproximityanddistributionofpopulation,thirdpartyconstructionactivities,environmentallysensitiveareas,andunusuallysensitiveareas.Theriskassessmentelementresultsinanunderstandingofthe riskprofile:thecontributorstotheoverallriskofthesegmentofpipelinebeinganalyzed,andtherelativeimportanceofeachofthesecontributors.Thisunderstandingofthecurrentriskprofileprovidesthebasisfordefininganddecidingamongwaystoreducetheserisks,whichisthenextstepintheriskmanagementprocess.  T,'+ Riskassessmentsareoftenperformedinaniterativemanner.Forexample,ascreeninglevel,or firstcutriskassessment,employinglessdetailedanalyses,isoftenusedtofocusthescopeoftheprogramandidentifythoseareaswheremoredetailedanalysesshouldbeperformed.RiskassessmentisaddressedinmoredetailinSectionIV.1ofthisstandard.W=n v &~.6!#>&(*F-~nXW II.2.2 Q=~n v &~.6!#>&(*XQ0   ` RiskControlandDecisionSupport8 (#(#  Inthisportionoftheriskmanagementprogram,theorganizationexaminesoptionsforcontrolling  ` therisksidentifiedinthepreviousstepandmakesdecisionsconcerningwhichspecificriskcontrolactivitiestoperformandwhentoperformthem.A riskcontrolactivitycanbeacurrentpracticeorachangeinthewaythatthepipelineisdesigned,constructed,tested,operated,ormaintainedforthepurposesofimprovingtheriskprofileofthepipeline.Forexample,riskcontrolactivitiescanincludeadditionsofisolationvalves,increases(ordecreases)insurveillanceortestingintervals,changesinthetimingornatureofamaintenanceactivity,operatingthesystemunderdifferentconditions,etc.Theexpectedoutcomeofthisstepistheidentificationofanoverallsetofriskcontrolactivitiesthatcollectivelyachievestheriskmanagementgoalsoftheoperatingcompanyandproducesanequalorgreaterlevelofsafety.Riskcontrolanddecisionsupportaddressthefollowingquestions:   Whatcouldbedonetocontrolrisks?    0  0(#(#0` (#(#Givenourunderstandingofthecurrentriskanditscontributors,wherecan  improvementsindesignoroperationbemadetoreduceriskormoreefficientlycontrolrisk? ` (#` (#     0 ` Whatarepossiblewaysofreducingthelikelihoodofevents?X ` (#` (#     0 ` Whatarepossiblewaysofreducingtheconsequencesofevents?0" ` (#` (#    Whataretherelativemeritsofthevariousriskcontroloptions?  $X"     0 ` Howmuchdoeseachoptionaffecteachtypeofrisk?%0!$` (#` (#     0 ` Howmuchdoeseachoptioncosttoimplement?'#&` (#` (#     0 ` Whatareotherbenefitsorincrementalcostsofeachoption?)$(` (#` (#    Whatsetofactivitiesbestachievesriskmanagementgoals?  T,'+  @-(,     0 ` Whatarethemostcosteffectiveriskcontroloptions?` (#` (#     0 ` Arethereadditionalcompensatoryactionsthatcanbeperformedtocost  effectivelycontrolresidualrisks? ` (#` (#     0 ` Inadditiontoriskreductionandcost,whatotherfactorswillbeconsideredin L  choosingamongriskcontrolactivities? ` (#` (#     0 ` Howcanthevariousoptionsbeintegratedtoproduceanoverallsetofchanges  ` thatachievestheriskmanagementgoals? ` (#` (# 0  0(#(#0` (#(#Howcanavailableresourcesbeallocatedtomostefficientlyimplementthe $  activitiesovertime? ` (#` (#     0 ` Shouldadditionalresourcesbecommittedtoreducerisks? ` (#` (# RiskcontrolanddecisionsupportareaddressedinmoredetailinSectionIV.2ofthisstandard.W=n v &~.6!#>&(*F-~nXW II.2.3    ` Q=~n v &~.6!#>&(*XQ PerformanceMonitoringandFeedback H  Inthisportionofariskmanagementprogram,theorganizationestablishesperformancemeasures  p andtracksprogresstoensurethattheintendedeffectsofitsactionsarebeingachieved.Performancemonitoringandfeedbackaddressthefollowingquestions:   Whatimprovementsareexpectedfromtheriskcontroldecisions?        0 ` Whatchangesinperformanceareexpectedfromtheselectedsetofimprovements?` (#` (#     0 ` Howwouldthesechangesbeexpectedtomanifestthemselvesintheshort, l intermediate,andlongterm? ` (#` (#   Whatmeasuresbestcapturetheseexpectedoutcomes?  0"      0 ` Whatcanbemeasuredorobservedintheshorttermandoverthelongtermto $X" determineifthespecificapplicationsofriskmanagementareproducingthedesiredresults? ` (#` (#     0 ` Howcantheorganizationdemonstrateequalorgreaterlevelsofsafety?'#&` (#` (#   Aretheselectedriskcontrolactivitieshavingtheintendedeffects?  |*%)     0 ` Doesactualexperienceconfirmpredictions?T,'+` (#` (#  @-(,    Howcantheoverallriskmanagementprocessbeimproved?       0 ` Givenactualexperience,doestheorganizationneedtochangeitsdecisions?` (#` (#     0 ` Howshouldtheriskassessmentandriskcontrolprocessesbeupdatedtoreflect ` newexperience? ` (#` (# PerformancemonitoringisaddressedinmoredetailinSectionIV.3ofthisstandard.W=n v &~.6!#>&(*F-~nXW  $ t Hќ-/  ] X XTs)[III.   ` RiskManagementProgramElements# XTsX  ]#   Riskmanagementprogramelementsformthefoundationoftheorganizationalinfrastructurethatsupportstheanalyticalandtechnicalprocesselementsofriskmanagement.Riskmanagementprogramelementsdealwiththeoverallfunctioningoftheriskmanagementprogram.Thecontentandcomplexityoftheriskmanagementprogramelementsshallbeconsistentwiththedegreeofrisk,thecomprehensivenessoftheriskmanagementprogram,thequantityandqualityofdataavailable,andcorporateorganizationalcapabilities.Whiletherearemanywaystostructureariskmanagementprogram,allprogramsshallcontainelementsthataddressadministration,communication,documentation,andprogramevaluation.  LX XTsIII.10   ` Administration# XTsX Lm#4 (#(#  0   (#(# Theriskmanagementprogramshouldbedocumentedtoensurethattheriskmanagementpoliciesareestablished,understood(bothwithinandoutsidetheorganization),implemented,andmaintained.Theriskmanagementprogramshallbeanintegralpartofnormaloperations.Proceduresmustbeestablishedforconductingtheriskmanagementprogram.Thesepoliciesandproceduresaddressanumberofadministrativerequirements,including:  III.1.1   ` RolesandResponsibilities    Theriskmanagementprogramdocumentationshalldefinerolesandresponsibilitiesforconductingriskmanagementactivitieswithintheoperatorsorganization.Riskmanagementshouldbeintegratedintoexistingfunctionswhereappropriate.Authorityfordecisionsandnecessaryresourcesshallbedefined.  &  III.1.2   ` PersonnelQualifications  0 Qualifiedpersonnelareessentialforexecutionofaneffectiveriskmanagementprogram.TheriskmanagementplanshalldescribethepersonnelqualificationsnecessaryfortherolesandresponsibilitiesassignedasdescribedinSectionIII.1.1,anddefinetheprocessesthatwillbeusedtoensurethatpersonnelperformingriskmanagementtaskspossessthenecessaryqualifications.'0{ III.1.3   ` ManagementofChange  $" Theriskmanagementplanshallincludeadiscussionoftheoperatorsmanagementofchangeprocedures.Managementofchangeappliestoapprovalanddocumentationrequirementsforbothproceduralandphysicalchangesrelatedtodesign,construction,operations,andmaintenanceofpipelinefacilities;andproceduralchangesassociatedwiththeriskmanagementprogram.Riskmanagementprogramsshouldincludemechanismsforgatheringandassimilatingnewinformationonpipelinesurroundingsandconditionsassituationsthatmayaffectriskchangeovertime.  LX XTsIII.2  0 ` Communication ,T'*` (#` (# # XTsX L# -h(+ )[ )H )  Anefficientflowofinformationamongappropriatestakeholders,bothinternalandexternaltotheoperatingcompany,enhancesthequalityoftheanalyses,improvesdecisionmaking,facilitatesreview,andbuildstrust.Ariskmanagementprogramshallcontainaninternalcommunicationselement,inwhichinformationconcerningthegoalsandimplementationoftheriskmanagementprogram,relevantinputdata,andresultsobtainedarecommunicatedthroughouttheorganization.Ariskmanagementprogramshallalsocontainanexternalcommunicationselement,inwhichregulatorandotherstakeholderinterestsandconcernsareunderstood,andprogramgoalsandresultsarecommunicatedtoanddiscussedwithFederal,state,andlocalregulators,thepublic,andotherstakeholdersasappropriate.Ariskmanagementprogramshallincludeaformalcommunicationsplanthatidentifiesthetypesofinformationtobecommunicatedandtheaudiencestoreceivethatinformation(e.g.,employees,operatorsofotheradjacentfacilities,regulatoryagencies,othergovernmentagencies,emergencyresponseagencies,thegeneralpublic,theaffectedpublic).Riskmanagementprogramsalsoshallincludethemethodsofcommunication(e.g.,publicmeetings,citizenadvisorypanels,printedmaterials,videotapes,telecommunications),individualsororganizationsresponsibleforthesecommunications,andthemethodsthatwillbeemployedtoreceiveinformationfromtheseaudiences.  X X III.3  0 ` Documentation# XX  # h` (#` (# Theriskmanagementprogramshallcollectandmaintaindocumentationoftheinputs,analyses,andoutputsofeachelementoftheriskmanagementprogram.Thisdocumentationsupportsefficientinternalimplementationofeachstepoftheriskmanagementprocessandallowskeyriskmanagementresultsanddecisionstobetraceableanddefensible.Theriskmanagementprogrammaydrawonexistingdocumentationwithinacompanyandwillproducenewdocumentationrequirementsassociatedwiththeriskassessment,riskcontroldecisions,andperformancemonitoring.Ariskmanagementprogramshallincludeadocumentationplanthatdescribeshowthecompanywillacquire,process,store,report,maintain,verify,andmodifyrelevantriskmanagementdataandinformation(e.g.,programplansandprocedures,specifictechnicalanalyseswithinputdataandassumptions,trainingrecords).   X X  (#& III.4  0 ` ProgramEvaluationandImprovement # XX  #` (#` (# 0   (#(# Inordertodetermine,report,andimprovetheeffectivenessoftheriskmanagementprogram,ariskmanagementprogramshallincludeaplannedandstructuredevaluationofitsactivitiesandprocesses.Evaluationthusservesasaqualityorcontinuousimprovementelementoftheriskmanagementprogram.Theriskmanagementprogramshallincludeanevaluationplanthatperiodicallyexaminesandreports0  1.0` (#(#Thequalityandeffectivenessoftheadministrative,communication,and 8  documentationprogramelements ` (#` (# 0  2.0` (#(#Thequalityandeffectivenessoftheanalyticalprocessesusedtoassessrisks, X  identifypossiblewaystocontroltheserisks,allocateresourcestocontrolrisksinthemostcosteffectiveway,andmonitorperformance ` (#` (# 0  3.0` (#(#Theimpactsofriskmanagementdecisionsonthechoiceofperformance  measures ` (#` (# 0  4.0` (#(#Theconclusionsandreassessmentsaboutprogrameffectivenessresultingfrom  performancemonitoringandfeedback. ` (#` (# /*   X XIV.   ` RiskManagementProcessElements # XX  #  Processelementsarethetechnicalandanalyticalactivitiesneededtoassessrisks,identifypossiblewaystocontroltheserisks,allocateresourcestocontrolrisksinthemostcosteffectiveway,andmonitorperformance.Whiletherearemanywaystostructureanoverallriskmanagementprocess,allprocessesshallcontainthefollowingelements.   X XIV.1   ` RiskAssessment # XX  #   Thefirststepoftheoverallriskmanagementprocessistoidentifyandunderstandthespecificrisksthatmustbemanaged.TheRiskAssessmentportionofariskmanagementprogramaddressesthefollowingbasicquestions:   Whattypesofriskswillbeaddressed? (SectionIV.1.1)    0  Whatadverseeventscanhappen? (SectionIV.1.2)`(#(#   Howlikelyaretheseeventstooccur? (SectionIV.1.3) @   Howseverewouldtheconsequencesbeweretheeventstooccur? (SectionIV.1.4)  p 0  Howisariskprofiledeveloped? (SectionIV.1.5) P(#(# Theriskassessmentprocesselement,anditsrelationshiptotheotherriskmanagementprocesselementsisillustratedinFigureIV1.̜*,XXN XX* IV.1.10 ` 0N ` (#` (#ScopingandScreeningAnalysis N (#N (# Akeyfirststepinriskassessmentisdefiningthescopeoftheanalysis.Thescopedefinitionprovidestheframeworkandboundariesfortheentireriskassessmentprocess,andtherefore   mustbewelldefinedatthebeginningoftheprocess.Anoperator'sriskmanagementprogram p! shallcontainascopedefinitionthatincludes:  0 ` Thephysicalboundariesofthepipelinesystemthatwillbeaddressed@$!` (#` (#   0 ` Theportionsofthelifecyclethatwillbeaddressed(e.g.,willdesignand  &p!# constructionissuesbeexamined,orwillthestudyfocusonoperationalandmaintenanceproblemsandsolutions?) ` (#` (#   0 ` Thebreadthoftheanalysesthatwillbeaddressed(e.g.,willalltypesoffailure )0%' modesandpotentialsolutionsbeconsidered,orwilltheprogramfocusonspecifictypesoffailuremodes?). ` (#` (#  ,(* k!7'#`<%) `/E))ee3:*k (# (#(#(#  (# (# Thescopeoftheriskassessmentshallbeconsistentwiththeoverallgoalsoftheoperator'sriskmanagementprogram.Althoughsuccessfulriskmanagementprogramsusuallyexpandtheirscopeandbecomemorecomprehensiveovertime,itisoftennotnecessarytoperformadetailedriskassessmentofanentirepipelinesystemasthefirststepofapipelineriskmanagementprogram.Thereareavarietyofusefulwaysofinitiallylimitingthescopeofadetailedriskassessment,including  1.0 ` A screeninganalysisthatidentifiesthosesegmentsofthepipelinethatarein @  ornearhighpopulationzonesorareasunusuallysensitivetoenvironmentaldamage,orthathaveexperiencedpooroperatinghistories,andthereforecouldreasonablybeexpectedtoposerelativelyhigherrisksthanotherportionsofthepipeline ` (#` (#   2.0 ` Theidentificationofspecificissuesbyoperatorsorregulatorsthatappearto 0  posehigherthanaveragerisksorprovideopportunitiesformorecosteffectiveriskcontrol(e.g.,significantnewresidentialorcommercialconstructionintheimmediatearea,corrosivesoilconditions,etc.) ` (#` (#   3.0 ` Theexistenceofspecialcircumstancesorcharacteristicsofaspecificsegmentof  thepipeline(e.g.,itisabouttobetransferredtoanothercompany,itsharescharacteristicswithanotherpipelineinwhichaseriouseventhasoccurred,etc.) ` (#` (# Riskmanagementprogramswithalimitedscopeareoftenaprudentwayofintroducingriskmanagementprogramsintoanorganization,allowingexperienceandskillstobedevelopedinacontrolledmanner.However,thescopeoftheriskmanagementprogramshallincludesystemcomponentsandfailuremodesthathaveasignificanteffectontheriskmanagementconclusionsanddecisions.Theriskmanagementprogramshalldefineanddocumentthescopeandpurposeoftheriskassessment,includinganypreliminaryevaluationsandscreeninganalysesthatmaybeundertaken.Assessmentsareexpectedtoevolveovertime,andperiodicupdateswillbeapartoftheriskmanagementprogramdocumentation(seeSectionIII.3).Thesystembeinganalyzedisdefinedbyprovidingageneralsystemdescription,includingboundaries,environment,andoperatingconditions.Anyassumptionsandconstraintsapplicabletothesystem,theevents,andthemethodsusedshallbestatedinthescope. IV.1.2 `  N EventIdentification  `'"% FigureIV2depictstheprogressionofapipelineincident.Inpipelineriskmanagement,theconditionthatexistswiththepotentialforcausingundesirableconsequences(i.e.,the hazard) 0*%( isthepresenceofhazardousliquidsornaturalgaswithinthepipeline.Theaccidentalreleaseofthesesubstancescanpotentiallycauseuncontrolleddispersalofthese  ,`'* TRO'3 Letter LandscapeX3' Letter'3 Letter Landscape3' LetterTk.7'#`<0*I `/E0*I0*Iee*k ..                                    TRX3' LetterO'3 Letter Landscape3' Letter'3 Letter LandscapeTsubstances,withthepossibilityofassociatedfires,explosions,propertydamage,or  environmentalimpacts.Apipelineincidentistheresultofoneormoreeventsinasequencethatleadtolossofpipelineintegrityandlossofcontainmentoftheliquidornaturalgasproduct.Eachoftheseeventsinthesequencemayhaveoneormorepotentialcauses.Forexample,arectifierfailurecanleadtolossofcathodicprotection,whichcanleadtocorrosion,whichcanleadtolossofcontainment.Therectifierfailureitselfmaybecausedbyrandomcomponentfailure,lightning,etc.Ariskassessmentidentifiesthespecificeventsorcombinationsofeventsthatcouldleadtolossofpipelineintegrityandunintendedreleaseofproduct,anddelineatesthepotentialcausesoftheseevents.Insubsequentriskassessmentsteps,thelikelihoodofthesespecificeventsandtheseverityofconsequencesassociatedwiththemwillbeestimated.Anoperator'sriskmanagementprogramshalldescribetheprocesses,tools,andmodelsbywhichpipelineincidentsandtheircausesareidentified.Pipelineincidentscanbeidentifiedinavarietyofwayswithvaryinglevelsofdetailandsophistication,including0  0` (#(#Knowledgebasedprocesses,inwhichtheexperienceofoperationsand  maintenancepersonnelconcerningthecausesofpipelineincidentsissystematicallycapturedthroughinterviews,checklists,failuremodesandeffectstables,etc. ` (#` (#   0 ` Databasedprocesses,inwhichthedocumentedoperatinghistory(intheformof 0 incidentreportingsystems,maintenancehistories,etc.)ofthepipelineorother,similarpipelinesisexaminedtoidentifycauses. ` (#` (#   0 ` Logicbasedprocesses,inwhichlogicmodelsareconstructedtosearchforand @ identifypotentialcausesofpipelineincidentsbysystematicallybreakingtheincidentsintotheircontributingcauses(e.g.,faulttrees),orbyfollowingthepossibleoutcomesthatcanresultfromapostulatedinitiatingevent(e.g.,scenariomodels,oreventtrees). ` (#` (# Thelevelofdetailandsophisticationoftheriskassessmentprocessesandmodelsshallbecommensuratewiththelevelofriskbeingevaluatedandshallbeabletoprovidethelevelofprecisionnecessarytosupportthespecificriskcontroldecisionsbeingmade.Anoperator'sriskmanagementprogramshalljustifytheappropriatenessofthelevelofdetailoftheriskassessmentmodels.  0*%( IV.1.3 `  N FrequencyAnalysis   Oncetheseriesofeventsthatcouldleadtopipelineincidentsandconsequentialimpactsare  identified,itisnecessarytoestimatetherelativelikelihoodthattheseeventswillactually  occur.Frequencyanalysisprovidesestimatesoftherelativelikelihoodoftheeventoreventsthatleadtopipelineincidentsandtoadverseconsequences.Frequenciesofeventscanbeestimatedineitherqualitativeorquantitativeterms,orboth.Qualitativeprocessesoftenuserelativecategoriessuchas frequent, likely, unlikely,or 0   raretodepictthelikelihoodofexperiencinganevent.Often,thequalitativecategoriesare  p  calibratedtorangesofquantitativefrequencies(e.g., likelymaybeassignedtoeventswith `  anexpectedfrequencybetween1and5eventsperyear).Quantitativeprocessesestimatetheexpectednumberofeventsperunittime(e.g.,10timesperyear).Semiquantitativeprocessesoftenuseanumericindextoestimatetherelativefrequencyofevents.Forexample,thefrequencyofthirdpartydamageeventsmaybeassignedanindexscoreof30,andcorrosioneventsmaybeassignedanindexscoreof10,indicatingthatthirdpartydamageeventsareexpectedtooccurthreetimesasfrequentlyascorrosioninducedevents.Aswitheventidentification,frequencyestimationcanbeperformedatvaryinglevelsofdetailandsophistication,including  0 ` Knowledgebasedprocesses,inwhichexpertopinionisusedtoestimatethe ` frequencyofeventsbasedonexperienceofknowledgeableoperators,inspectors,etc. ` (#` (#   0 ` Databasedprocesses,inwhicheventfrequenciesarederivedfromdocumented  p operatinghistory(intheformofincidentreportingsystems,maintenancehistories,etc.)ofthepipelineorother,similarpipelines. ` (#` (#   0 ` Logicbasedprocesses,inwhichlogicmodels(e.g.,faulttreesoreventtrees) 0 areconstructedtomathematicallycombinethefrequenciesofcausaleventsorseriesofeventsintoanestimateofpipelineincidentfrequency.Logicbasedprocessesareoftenusedwheninsufficientoperatingdataexiststoestimatedirectlythefrequencyofveryrareevents. ` (#` (# Anoperatorsriskmanagementprogramshalldescribetheprocesses,tools,andmodelsbywhichthefrequencyofpipelineincidentsistobeestimated.Anoperatorsriskmanagementprogramshalldefineandjustifytheappropriatenessofthelevelofdetailoftheriskassessmentmodels.Limitationsoruncertaintiesintheanalysisshallbedocumented. P(#&   0*%( IV.1.4 `  N ConsequenceAnalysis   Consequenceanalysisinvolvesestimatingtheseverityoftheimpactsoftheidentifiedeventorsequenceofeventsonthehealthandsafetyofpeople,theenvironment,availabilityofservice,orotherimpactsincludedintheoperator'sriskmanagementprogram.Consequenceanalysismustconsidernotonlytheeventsthatleaduptolossofpipelinecontainment,butotherevents(e.g.,success/failureofremotelyoperatedisolationvalvestoclose)andconsiderations(e.g.,populationdistribution)thatcouldaffecttheseverityofexpectedconsequences.Consequenceanalysisshallconsiderataminimum:  1. ` Theamountofhazardoussubstancethatisreleased P    2.0 ` Thephysicalpathwaysanddispersalmechanismsbywhichthesubstancecan 0  reachandimpactemployeesorthepublic,orcauseenvironmentaldamage ` (#` (#   3.0 ` Theamountofsubstancethatwouldactuallybeexpectedtoreachemployees,  thepublic,ortheenvironmentthroughthesepathways ` (#` (#   4.0 ` Theexpectedeffectofthereleasedsubstance.` (#` (# Consequencesofeventscanbeestimatedineitherqualitativeorquantitativeterms,orboth.Qualitativeprocessesoftenuserelativecategoriessuchas severe, significant, moderate, P or insignificanttodepicttheseverityofconsequencesfromanevent.Often,thequalitative @ categoriesarecalibratedtorangesofquantitativeconsequences(e.g., significantmightbe 0 assignedtoeventswithanexpectedconsequenceofbetween1and5seriousinjuriesperyear).Quantitativeprocessesestimatetheexpectedseveritylevelintermsofnumberoffatalities,seriousinjuries,etc.Semiquantitativeprocessesoftenuseanumericindextoestimatetherelativeconsequencesofevents.Forexample,aneventthatisexpectedtoleadtoafatalitymightbeassignedanindexscoreof100,aneventthatleadstoaseriousinjurymightbeassignedasmallerindexscore,andaneventthatleadstomoderatepropertydamagemightbeassignedastillsmallerindexscoretoindicatetherelativeharmassociatedwiththeseimpacts.Anoperatorsriskmanagementprogramshalldescribetheprocesses,tools,andmodelsbywhichtheconsequencesofpipelineincidentsareestimated.Anoperatorsriskmanagementprogramshalldefineandjustifytheappropriatenessofthelevelofdetailoftheconsequencemodels.Limitationsoruncertaintiesintheanalysisshallbedocumented. p&!$  IV.1.5 ` 0 N RiskEstimation P(#&N (#N (# Riskestimationistheprocessofcombiningfrequencyandseverityestimatesintoariskvalue.Thefrequencyandconsequenceestimatedforeachofthevariousidentifiedeventsorsequencesofeventsarecombinedintoariskvalueforthateventsequence.Theriskvaluesforallidentifiedeventsequencescanbecombinedintoanoverallriskvalueforthepipeline.The -P(+ riskvaluesmaybequalitative,quantitative,oracombinationofboth,dependingupontheprocessesusedforfrequencyandconsequenceanalysis,andthegoalsoftheoperator'sriskmanagementprogram.Thisportionoftheriskassessmentprocessresultsina riskprofile,oranoveralldepictionof p pipelineriskanditsconstituentparts.Thisriskprofilewillbeusedinthesubsequentriskmanagementprocesselementtodefineandassesspotentialactionstocontrolexistingrisks.Riskprofilesthatmaintaindiscernibleestimatesoffrequencyandseverityallowdistinctionstobemadebetweenlowfrequency/highseverityeventsandhighfrequency/lowseverityeventsaswellastotalriskvalues.Anoperator'sriskmanagementprogramshalldescribetheprocesses,tools,andmodelsbywhichthefrequenciesandconsequencesofpipelineincidentsarecombinedintooverallriskvalues.Anoperator'sriskmanagementprogramshalldefineandjustifytheappropriatenessofthelevelofdetailoftheriskestimationmodels.Limitationsoruncertaintiesintheanalysis   shallbedocumented.  ̜   X XIV.2   ` RiskControlandDecisionSupport # XX  #  ̜Theprevioussectionofthisstandarddescribesthebasicprocessesbywhichapipelinecompanycanidentifyandassesstherisksassociatedwithitspipelinesystems.Thissectiondescribestheprocessesbywhichthepipelinecompanyidentifies,evaluates,andchoosesamongalternatemeanstocontrolthoserisks.TheRiskControlandDecisionSupportportionofariskmanagementprogramaddressesthefollowingbasicquestions:  H   Whatcouldbedonetocontrolrisks? (SectionsIV.2.1andIV.2.2) (x  0  Whataretherelativemeritsofthevariousriskcontroloptions? (SectionIV.2.3) X(#(#    Whatsetofactivitiesbestachievesriskmanagementgoals? (SectionIV.2.4) !8 Theriskcontrolanddecisionsupportprocesselement,anditsrelationshiptotheotherriskmanagementprocesselementsisillustratedinFigureIV3. IV.2.1 `  N IdentificationofRiskControlIssues  &!$ Riskmanagementprogramsshallincludeformalizedandstructuredprocessestoidentifythosespecificsituationswhereitmaybepossibletoreducerisk,ortomaintainrisksatcurrentlevelsinmorecosteffectiveways.These riskcontrolissuesrepresentpotentialopportunitiesto X*%( improvethelevelofprotectionofthepublic,theenvironment,andpropertybymakingchangestothewaythatthepipelineisdesigned,constructed,operated,ormaintained.Theprimarygoalofacompany'sriskmanagementprogramistoprovidecorporatemanagement  (-x(+ k17'#`<Q) `/E))ee_:*k (# (#(#(#  (# (# withinformationtosupportdecisionsaboutwhatspecificactions,ifany,shouldbetakentoaddresstheseissues.Theseriskcontrolissuesmayhavebeenidentifiedintheoriginalscopingoftheriskmanagementprogram(e.g.,amaintenancemanager'sconcernthatacurrentmaintenancepracticemaynotbethemostcosteffectivewayofcontrollingrisk)ormayresultfromareviewoftheriskassessmentofthepipelinesystem(e.g.,theidentificationofapipelinesegmentwitharelativelyhighriskduetocorrosion).Riskcontrolissuescouldinclude  0 ` SubstantialcontributorstooverallpipelinesystemriskP ` (#` (#   0 ` Situationswheretherisk,whilenotamajorcontributortocurrentpipelinerisk, 0  mightstillbecosteffectivelyreduced ` (#` (#   0 ` Situationswherethecurrentlyappliedorrequiredriskcontrolmechanismsmay  bemorecostlythanequallyeffective,alternativemechanisms. ` (#` (#  IV.2.2 `  N IdentificationofRiskControlOptions   Riskmanagementprogramsshallincludeformalizedandstructuredprocessesthatspecifyriskcontroloptionsforaddressingtheriskcontrolissuesidentifiedinthepreviousstep.Riskcontroloptionsincludethosethat  0 ` Alterorreplaceadesign,construction,testing,operational,ormaintenance  p practiceinsuchawaythatthecurrentlikelihoodofpipelineincidentsisreduced ` (#` (# 0  0` (#(#Alterorreplacesuchpracticessothatthecurrentlevelofconsequences @ associatedwithpipelineincidents,shouldtheyoccur,isreduced ` (#` (#   0 ` Alterorreplacesuchpracticeswithmorecosteffectivepracticesthatachieve ! equalorgreaterlevelsofsafety ` (#` (#   0 ` Continuecurrentpracticestomaintainexistinglevelsofrisk.$"` (#` (# Theprogressionofapipelineincidentcanalsobeusedtoguideandstructuretheidentificationofriskcontroloptions.AsshowninFigureIV4,prevention,mitigation,andresponseactionscanbedefinedatvariouspointsintheincidentprogression.  @)$' TRO'3 Letter LandscapeX3' Letter'3 Letter Landscape3' LetterTk37'#`<0*y `/^E0*y0*yee*k ..                           ..̜  @ TRX3' LetterO'3 Letter Landscape3' Letter'3 Letter LandscapeTIV.2.2.1 ` PreventionOptions   Riskmanagementprogramsshallincludeastructuredapproachtoidentifyanddocumentpossibleactionstoreducethecurrentlikelihoodofpipelineincidentsortopreventpipelineincidentsinamorecosteffectivemanner.Possibleactionstobeinvestigatedinclude,butarenotlimitedto  0 ` Enhancementstopipelinedesign@ ` (#` (#   0 ` Physicalmodificationstothepipelinesystemhardwareandconfiguration p ` (#` (#   0 ` Changesinoperationalpractices,includingchangestotheallowableoperating P  conditions ` (#` (#   0 ` Changesinmaintenancepractices,includingthenatureandfrequencyof   maintenanceandinspections ` (#` (#   0 ` Improvedqualificationsofpersonnel` (#` (#   0 ` Changesinthewaythatpipelineworkers,thirdparties,andthepublicare  notifiedofsafetyrelatedconditionsandexistingpipelinerisks. ` (#` (#  IV.2.2.2 ` MitigationandResponseOptions  P Riskmanagementprogramsshallincludeastructuredapproachtoidentifyanddocumentpossibleactionstodiminishthesizeofthereleaseandreducethecurrentlyanticipatedlevelofconsequencesshouldapipelineincidentoccur,ortoperformexistingprotectionandmitigationactivitiesinamorecosteffectivemanner.Thepossibleactionstobeinvestigatedinclude,butarenotlimitedto:  0 ` Physicalmodificationstothepipelinesystemhardwareandconfigurationthat   limitorreducethereleasefromapipelineinthecaseofanincident ` (#` (#   0 ` Improvementsinoperationalpractices,includingchangestotheallowable #! operatingconditionsthatservetolimitorreducethereleasefromapipelineinthecaseofanincident ` (#` (#     0 ` Improvementstoqualificationsofpersonnelandthewaythatpipelineoperators `'"% andotherpersonnelaretrainedtorespondtoincidents ` (#` (#   0 ` Improvementsinemergencyresponseplans,equipment,andfacilities0*%(` (#` (#   0 ` Actionstolimittheproximityofthepublictopipelines,`'*` (#` (#  -P(+   0 ` Actionstolimitthepotentialforenvironmentaldamagecausedbyreleasefrom  thepipeline ` (#` (#   0 ` Improvementsinthewaythatpipelineemployeesandcontractors,thirdparties,  andthepublicarenotifiedofsafetyrelatedconditionsandexistingpipelinerisks. ` (#` (# 0  0` (#(#Improvementsinthewaythepipelineismonitoredandinspected(e.g.,leak @  detection,surveillance,patrolling,etc.) ` (#` (#  IV.2.2.3 ` IntegrationofRiskControlOptions `   Riskmanagementprogramsshallincludeprocessestoproduceanintegratedsetofpotentialriskcontroloptions,examiningthepossibleconflictsandsynergiesbetweenandamongtheindividualriskcontroloptionsidentifiedabove.Theseintegrativeprocessesshallincludeanexaminationoftheresidualriskexpectedtoremainaftertheidentifiedriskcontroloptionshavebeenimplemented.Riskmanagementprogramsshallincludeprocessesbywhichtheresidualrisksareexaminedtodeterminewhetherthereareadditionalriskcontrolactivitiesthatcouldfurtherreduceriskcosteffectively. IV.2.3 ` EvaluationandComparisonofRiskControlOptions  ` Riskmanagementprogramsshallincludeastructuredprocessforevaluatingandcomparingtherelativeriskreductionbenefitsandcostsoftheriskcontroloptionsbeingconsidered.Resultsofthisprocessshouldsupportcorporatemanagementdecisionmaking. IV.2.3.1 ` EvaluationofRiskControlOptions  P Riskmanagementprogramsshallincludeastructuredprocessforevaluatingtherelativebenefitsandcostsoftheriskcontroloptionsbeingconsidered.Theevaluationprocessincludes,butisnotlimitedto,anexaminationof  0 ` Thecurrentriskstothepublic,employeesandcontractors,andtheenvironment #! thatmayexistbeforetheproposedriskcontroloptionisimplemented ` (#` (#   0 ` Theestimatedriskstothepublic,employeesandcontractors,andthe p&!$ environmentthatmayexistaftertheproposedriskcontroloptionisimplemented ` (#` (#   0 ` Thecost(orcostsavings)ofimplementingtheriskcontroloption@)$'` (#` (# 0  0` (#(#Thepotentialimpact,ifany,ontheoperationorexpectedlifeofthepipeline. +p&)` (#` (#   ,`'* Theprocessshalldescribethemannerinwhichuncertaintiesinrisk,cost,andotherdecision factorsareaddressed.Theevaluationprocessesshallalsoinclude(1)anexaminationoftheresidualriskexpectedtoremainaftertheidentifiedriskcontroloptionshavebeenimplementedand(2)theconsiderationofadditionalriskcontrolactivitiestoaddresstheseresidualrisks. IV.2.3.2 ` ComparisonofRiskControlOptions  `  Riskmanagementprogramsshallincludeastructuredprocessforcomparingtheriskcontroloptionsbeingconsidered.Thecomparisonprocessshallconsidertheriskreductionbenefits,theimplementationcosts,andotherrelevantfactorsassociatedwitheachriskcontroloption.Thecomparisonprocessshalldescribe  1.0 ` Thefactorsbeingconsidered(e.g.,riskreductiontothepublic,riskreductionto @  theenvironment,costtoimplement,etc.) ` (#` (#   2.0 ` Themethodologiesforcombiningthesefactors(e.g.,expertjudgment,focus  groups,qualitativelogicmodels,prioritymatrices,weightedbenefitcostratios,etc.). ` (#` (# Themethodologiesusedtocombinebenefitsshouldbecompatiblewithcompanyvaluesandshallensurethatthevaluesofregulatorsandexternalstakeholdersareappropriatelyconsidered. IV.2.4 ` SelectionofRiskControlOptions  @ Riskmanagementprogramsshallincludeastructuredprocessbywhichmanagementdecideswhethertotakeactionsincluding,butnotlimitedto  0 ` Implementingtheactivityintheshortterm@` (#` (#   0 ` DeferringimplementationoftheactivitytoalatertimeX ` (#` (#   0 ` Performingaportionoftheactivity! ` (#` (#   0 ` Deferringtheactivityforfurtherdevelopment(#x"` (#` (#   0 ` Rejectingtheactivity$$` (#` (#   0 ` Implementingtemporary,compensatoryactionstolimitriskwhileotheroptions %H!& arebeingdevelopedandconsidered. ` (#` (# Implementingtheselectedsetofriskcontrolactionsonthepipelinesystemisintendedtoprovideequalorlesscombinedrisktothepublic,employeesandcontractors,andtheenvironmentcomparedtotheexistingconditions. ,'-    X XIV.3   ` PerformanceMonitoringandFeedback# XX  <;#   Intheriskmanagementprocesselementsdiscussedintheprecedingsections,currentrisksareassessedandasetofriskcontrolactivitiesareselectedtocontroltheserisks.PerformanceMonitoringandFeedbackprovidesabasisformeasuringtheeffectivenessbothofspecificriskcontroldecisionsandtheentireriskmanagementprogram,andtoidentifyimprovementopportunities. x  Acompanysriskmanagementprogramshallincludeaperformancemonitoringprocessthatdefinestheperformancemeasuresselected,themannerandfrequencyinwhichdatawillbecollectedandtheevaluationofperformanceagainstexpectedoutcomes.Inaddition,theperformancemonitoringprocessshallevaluatetheeffectivenessofthespecificprogramandprocesselements,andaddressappropriateimprovements.Performancemonitoringandfeedbackaddressesthefollowingquestions: 0  Whatimprovementsareexpectedfromtheriskcontroldecisions? (SectionIV.3.1) ((#(#    Whatmeasuresbestcapturetheseexpectedoutcomes? (SectionIV.3.1)  0  Aretheselectedriskcontrolactivitieshavingtheintendedeffects? (SectionIV.3.2)(#(#   Howcantheoverallriskmanagementprocessbeimproved? (SectionIV.3.3) x Theperformancemeasuresandfeedbackprocesselement,anditsrelationshiptotheotherriskmanagementprocesselementsisillustratedinFigureIV5.ForpurposesoftheDemonstrationProgram,theperformancemeasuresincludedinanoperatorsperformancemonitoringprocessarereferredtoas localperformancemeasures. h Additionalcompany/industrylevelperformancemeasureshavebeenidentifiedtoassesstheeffectivenessofriskmanagementasapotentialregulatoryalternativeandcommunicateprogressduringtheriskmanagementdemonstrationprojecttostakeholders.Thesemeasureswillbeformalizedandprovidedinaseparatedocument.Thelevelsatwhichperformancecanbemeasuredaredefinedasfollows: 0  1.0` (#(#Local :Thislevelmeasuresperformanceofasubsetofapipelinesystem &!$ specifictotheriskmanagementdemonstrationproject.Localperformancemeasureswouldbemonitoredbytheoperatorandusedinternallytoallocateresources.Theyalsowouldbeusedbytheregulatortoauditcompanyperformanceinthedemonstrationprojectandensurethatequalorgreaterlevelsofsafetyarebeingachieved. ` (#` (#   (-x(+ k57'#`<?  `Z%/E,  ,ekk87'#`<) `Z%/E))e{:*k (#(# D!(#D!(# D!(#D!(# 0  2. 0` (#(# Company :Thislevelmeasuresperformanceoftheindividualcompany,  encompassingtheentirepipelinesystem.Companyperformancemeasureswouldbeusedbythecompanytoassessitselfandmonitortheeffectivenessofitsriskmanagementprogram.SelectedcompanyperformancemeasureswouldbeusedbyOPStodevelopaconsistentindustrywideassessmentofthedemonstrationprogram. ` (#` (# 0  3.0` (#(#Industry :Thislevelmeasuresperformanceoftheentireindustryby @  aggregatingperformanceacrosscompanies.Performancemeasuresatthislevelwouldbeusedbythegovernmenttoassesstheeffectivenessofitsregulatoryprogramand,inparticular,toensurethatriskmanagementresultsinequalorgreaterlevelsofsafetythancurrentlevelsachievedthroughcompliancewithcodifiedregulations. ` (#` (#  IV.3.1 `  N SelectionofPerformanceMeasures   Applicablemeasuresofperformanceshallbeestablishedandspecifiedfortheportionofthe  systemunderriskmanagement.Selectionofperformancemeasureswilldependontheexpectedoutcomesoftheriskmanagementprogram,andshallreflecttheselectedriskcontrolactivities.Theprogressionofapipelineincidentcanalsobeusedtoguideandstructuretheidentificationofperformancemeasures.AsshowninFigureIV6,performancemeasurescanbestructuredaroundintendedimprovementsintheprevention,mitigation,orresponsetoincidents.Ataminimum,localperformancemeasuresshallmeetthefollowingcriteria:  0 ` Supporttheintentoftheriskmanagementinitiativeinachievingequalorgreater P overallsafety ` (#` (# 0  0` (#(#Arerelevanttotheriskcontroldecisionsbeingmadeineachproposed   application,andtracktheirshorttermandlongtermeffectiveness ` (#` (#   0 ` Documentstartingconditions,eitherthroughhistoricaldata,currentphysical #! data,newtestdata,orcomparisonwithsimilarsegments ` (#` (#   0 ` Establishexpectedoutcomesfromriskcontroldecisionsintheformofdiscrete p&!$ valuesorrangesforeachmeasure ` (#` (#   0 ` Enableauditing,monitoring,anddocumentationofperformance.@)$'` (#` (#   -P(+ TRO'3 Letter LandscapeX3' Letter'3 Letter Landscape3' LetterTFigureIV6k:7'#`<0*5 `/E0*50*5ee*k ..                        ..  0 TRX3' LetterO'3 Letter Landscape3' Letter'3 Letter Landscape''TAdditionalcriteriathatmightbeconsideredintheselectionoftheperformancemeasures  include:  0 ` Datauniformity` (#` (#   0 ` Costofdatacollectionp` (#` (#   0 ` Reliabilityofthemeasure` ` (#` (#   0 ` ConsistencyofinterpretationP ` (#` (#   0 ` Abilitytoquantify.@ ` (#` (# Riskrelatedmeasuresthatcouldbeconsideredinclude:  0 ` FrequencyandseverityofincidentsthatleadtoreleaseofproductP ` (#` (#   0 ` Likelihood/numberofcasualtiesperrelease@ ` (#` (#   0 ` Numberofcustomersorendusersaffectedperreleaseincident0 ` (#` (#   0 ` Extentofenvironmentaldamageperreleaseincident ` (#` (#   0 ` Economiccostoflostdeliveryperreleaseincident` (#` (#   0 ` Precursoror anticipativeeventmeasures` (#` (#   0 ` Othermeasuresspecifictotheriskcontroldecisions.` (#` (# Bothdirectandindirectperformancemeasuresareappropriate.Someperformancemeasuresprovidedirectmeasuresofsafety.Examplesmayincludeincidentrates,volumeofspills/releases,decreaseincorrosiondefectsovertime,andcathodicprotectionlevel.Otherperformancemeasuresprovideindirectmeasuresfromwhichsafetycanbeinferred.Examplesmayincludechangesinpipelinemassbalance(indicatingundetectedlossofproduct),rightofwaysurveillance(indicatingunauthorizedactivitythatmightleadtoanincreaseinthirdpartydamageevents),customersatisfactionsurveys(indicatingdecliningreliabilityofservice),etc.Oneofthechallengesinselectingdirectperformancemeasuresforpipelinesisthatincidentsarerelativelyinfrequent.Performancemonitoringwithtraditionaleventmeasures(suchasreportableincidents)maynotidentifystatisticallysignificanttrends.Therefore,riskmanagementprogramsshallidentifyprecursororanticipativeperformancemeasuresthatindicateactivitiesoreventsaffectingpipelineintegritywiththepotentialtocauseareleaseofproduct.̛ IV.3.2 `  N MonitoringandEvaluatingPerformance % #  ̜Theperformancemonitoringprocessshalldefinethemechanismsthatwillbeusedtocollectinformationonapredeterminedbasis;monitorpipelineoperatingconditions,operatingϜparameters,andphysicalcondition;andtrackperformanceagainsttheselectedperformancemeasures.Successoftheriskmanagementprogramcanbeevaluatedbycomparingperformancewithexpectedoutcomesestablishedintheplan.Byappropriateselectionofperformancemeasures, -P(+ thiscanapplytotheevaluationofindividualriskcontroldecisionsaswellastotheoverallevaluationoftheriskmanagementprogram.TheriskmanagementprogramshouldidentifyϜappropriatetimeframestoallowstatisticallysignificanttrendstobecomeevident.Performanceshortfallscanbeidentifiedbasedondifferencesbetweenactualperformanceandtheexpectedoutcome.Inthosecases,itmaybenecessarytoacquireadditionaldatatoconfirmtheshortfall,ormakeadjustmentstotheriskmanagementprogram. IV.3.3 `  N ModificationstotheRiskManagementProgram  0  Theperformancemonitoringprocessshallestablishcriteriaindicatingwhenadjustmentstoriskcontroldecisionswithintheriskmanagementprogramcanbemade,oradjustmentstotheriskmanagementprogramitselfarerequired.Thecriteriashouldindicatewhetherregulatornotificationand/orapprovalwouldberequired.Thesecriteriamightincludepercentagedeviationfromtheexpectedoutcome,dataquality,timeframe,andimpactofnotmakingtheadjustments(forexample,wouldtheproblemselfcorrect?).Theriskmanagementprogramalsoshoulddefinetherangeofexpectedadjustments.Toavoidbias,thesecriteriashallbeestablishedbeforeaperformancevarianceordeficiencyisencountered.*7   X X  p V.   ` Conclusions # XX  тi#  Theapplicationofriskmanagementtopipelineoperationsofferspotentialbenefitstoconsumers,operatingcompanies,thegeneralpublic,andtheregulatorycommunity.ϜImplementingtheprogramandprocesselementsinaccordancewiththisstandard,isexpectedtoachievesafety,environmentalprotection,andreliabilitylevelsequaltoorgreaterthanthoseexistingundercurrentcompliancecodes.Aneffectiveriskmanagementprogram,developedinconformancewiththisstandard,canimprovecommunicationwithregulatorsandotherstakeholdersaboutrisksandriskcontrolpriorities.Industryandregulatorsbelieveriskmanagementoffersthesebenefits,andtheRiskManagementDemonstrationProgramwilltestandverifythisbelief.    H+7     X XAppendixA# XX  cm#ԛ    X XJointRiskManagement X ProgramStandardTeam # XX  m# p   JohnGawronski N NewYorkPublicServiceCommission  (CoChair)   DeniseHamsher N LakeheadPipeLineCompany p   (CoChair)   AndyDrake `  N PanEnergyCorporation x  DavidFeiglstock N ChevronPipelineCompany X  BruceHansen `  N OfficeofPipelineSafety 8 DaveJohnson `  N ENRONOperationsCorporation h FredJoyner `  N OfficeofPipelineSafety H AnthonyKarahalios N ColoradoPublicUtilitiesCommission ( JerryLangley `  N WilliamsPipelineCompany  KeithLeewis `  N GasResearchInstitute  RobertLeonberger N MissouriPublicServiceCommission x StuartSchwartz N RiversideTechnology,Inc. X  NancyWolfe `  N OfficeoftheCaliforniaStateFireMarshal 8" JohnZurcher `  N TennecoEnergy $h   TeamStaff  %H!" HenryCialone N BattelleColumbus '(#$ MikeCowgill `  N RadianInternational )%& DougRead `  N AmericanPetroleumInstitute +&( JimvonHerrmann N CyclaCorporation