2 Pipeline & Gas Journal - February

AGCA Forecasts Major Payroll Cuts
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Published on Pipeline & Gas Journal (http://pipelineandgasjournal.com)

Home > AGCA Forecasts Major Payroll Cuts

According to new employment and business forecast figures released by the Associated General Contractors of America, an estimated two-thirds of the nations non -residential construction companies plan to cut payroll. The layoffs will result in a 30 percent decline in the number of people working on construction projects. Many construction companies experienced significant slowdowns beginning late in 2008, resulting in a 10 percent decline in the number of construction workers since 2006. According to the forecasts, AGC member companies expect declining activity in every type of construction market, with 92 percent of building contractors and 93 percent of road builders expecting or experiencing declining activity. More than 83 percent of utility contractors expect declines, as do 77 percent of water resource contractors. The good news is, planned investments in infrastructure projects as part of a stimulus package would dramatically improve the employment and business outlook for the year. Eighty-five percent of non-residential construction companies would either cancel layoffs or add new employees if states embarked on stimulus-funded infrastructure projects. Construction companies would increase payrolls 25 percent if the stimulus included new infrastructure investments, and would invest an average of $500,000 in new equipment if they received new work. 703.548.3118, www.agc.org [1] News Business Notes Newsreel Business Meetings & Events Case Construction Equipment Noise control
Source URL: http://pipelineandgasjournal.com/agca-forecasts-major-payroll-cuts Links: [1] http://www.agc.org
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10/12/2009
Global Demand For Plastic Pipe To Rise
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Home > Global Demand For Plastic Pipe To Rise

Worldwide demand for plastic pipe is forecast to increase 4.6 percent annually through 2012 to 8.2 billion meters, or 18.2 million metric tons. Gains will be based on continued strong prospects in developing nations, particularly in China. In fact, China will account for 30 percent of overall length demand gains for plastic pipe between 2007 and 2012. These and other trends are presented in World Plastic Pipe, a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm. Despite below-average growth, developed countries will continue to account for the majority of total plastic pipe demand. These regions (Western Europe and North America, as well as certain nations in the Asia/Pacific region, such as Japan and Australia) have the highest levels of pipe use intensity. However, they are also comparatively mature markets, where growth in construction activity tends to be well below the global average, inhibiting growth rates for plastic pipe.
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In the developing countries of Eastern Europe, Asia (exclusive of Japan) and the Africa/Mideast region, gains will outpace the global average, benefiting from ongoing infrastructure development. Economic growth in these countries will create demand for plastic pipe in networks for telecommunications and in residential home building applications. Ongoing efforts across these regions to upgrade water treatment systems will boost demand for plastic pipe used for potable water delivery and in drainage and sewage applications. Finally, in many nations, demand will benefit from the expansion of natural gas distribution networks. Polyvinyl chloride (PVC) is the leading plastic pipe resin, accounting for nearly twothirds of plastic pipe demand by weight in 2007. PVC pipe is popular because of its low -cost, durability, strength and ease of extrusion, allowing it to make inroads against non -plastic pipe materials. Demand for HDPE pipe will benefit from use as small-diameter
10/12/2009
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pipe in natural gas transmission, as conduit for electrical and telecommunications applications, and as corrugated pipe for drains and sewers. While comparatively small, demand for fiberglass pipe will post well above average gains, reflecting growth in extreme environment applications. World Plastic Pipe (published 12/2008, 358 pgs.) is available for $5,700 from The Freedonia Group [2], 767 Beta Drive, Cleveland, OH 44143-2326. News Business Notes Newsreel Business Meetings & Events Meters, electrical Pipe, HDPE HDPE
Source URL: http://pipelineandgasjournal.com/global-demand-plastic-pipe-rise Links: [1] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/demand.PNG [2] http://www.freedoniagroup.com
10/12/2009
Vactor Manufacturing HydroSurge
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Home > Vactor Manufacturing HydroSurge
Vactor Manufacturing HydroSurge

The Vactor HydroSurge high-performance cleaning nozzle for public utilities and professional contractors handles a variety of large pipe cleaning and maintenance applications. Featuring an adjustable nozzle plate and water jet inserts with adjustable angles, the HydroSurge nozzle provides traction and cleaning performance to handle the most stubborn blockages. The cleaning mode of 15 to 20 degrees removes heavy deposits from the bottom of the pipe. The propulsion mode of 5 to 10 degrees provides forward motion while effectively moving sand, silt and other debris back to the pipe opening. The HydroSurge nozzle can clear large sewer pipes and storm water pipes of everything from heavy debris and compact sand, to dense silt and compressed sludge. Its powerful enough to work underwater. Constructed of stainless steel for corrosion resistance and long service life, the HydroSurge features roll over bars, ceramic inserts, a unique hydro-force power system and an adjustable precision flow manifold. The nozzle is available in configurations of 6, 8, 10 or 12 water jets. 800.627.3171, www.vactor.com [1] Products New Products Performance Pipe Vactor Manufacturing Abrasive blast cleaning Abrasive water jetting Pipe, inspection Pipe, steel/stainless Sewer cleaning
Source URL: http://pipelineandgasjournal.com/vactor-manufacturing-hydrosurge Links: [1] http://www.vactor.com
10/12/2009
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Home > AGCA Forecasts Major Payroll Cuts

According to new employment and business forecast figures released by the Associated General Contractors of America, an estimated two-thirds of the nations non -residential construction companies plan to cut payroll. The layoffs will result in a 30 percent decline in the number of people working on construction projects. Many construction companies experienced significant slowdowns beginning late in 2008, resulting in a 10 percent decline in the number of construction workers since 2006. According to the forecasts, AGC member companies expect declining activity in every type of construction market, with 92 percent of building contractors and 93 percent of road builders expecting or experiencing declining activity. More than 83 percent of utility contractors expect declines, as do 77 percent of water resource contractors. The good news is, planned investments in infrastructure projects as part of a stimulus package would dramatically improve the employment and business outlook for the year. Eighty-five percent of non-residential construction companies would either cancel layoffs or add new employees if states embarked on stimulus-funded infrastructure projects. Construction companies would increase payrolls 25 percent if the stimulus included new infrastructure investments, and would invest an average of $500,000 in new equipment if they received new work. 703.548.3118, www.agc.org [1] News Business Notes Newsreel Business Meetings & Events Case Construction Equipment Noise control
Source URL: http://pipelineandgasjournal.com/agca-forecasts-major-payroll-cuts Links: [1] http://www.agc.org
10/12/2009
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Home > Global Demand For Plastic Pipe To Rise

Worldwide demand for plastic pipe is forecast to increase 4.6 percent annually through 2012 to 8.2 billion meters, or 18.2 million metric tons. Gains will be based on continued strong prospects in developing nations, particularly in China. In fact, China will account for 30 percent of overall length demand gains for plastic pipe between 2007 and 2012. These and other trends are presented in World Plastic Pipe, a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm. Despite below-average growth, developed countries will continue to account for the majority of total plastic pipe demand. These regions (Western Europe and North America, as well as certain nations in the Asia/Pacific region, such as Japan and Australia) have the highest levels of pipe use intensity. However, they are also comparatively mature markets, where growth in construction activity tends to be well below the global average, inhibiting growth rates for plastic pipe.
[1]
In the developing countries of Eastern Europe, Asia (exclusive of Japan) and the Africa/Mideast region, gains will outpace the global average, benefiting from ongoing infrastructure development. Economic growth in these countries will create demand for plastic pipe in networks for telecommunications and in residential home building applications. Ongoing efforts across these regions to upgrade water treatment systems will boost demand for plastic pipe used for potable water delivery and in drainage and sewage applications. Finally, in many nations, demand will benefit from the expansion of natural gas distribution networks. Polyvinyl chloride (PVC) is the leading plastic pipe resin, accounting for nearly twothirds of plastic pipe demand by weight in 2007. PVC pipe is popular because of its low -cost, durability, strength and ease of extrusion, allowing it to make inroads against non -plastic pipe materials. Demand for HDPE pipe will benefit from use as small-diameter
10/12/2009
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pipe in natural gas transmission, as conduit for electrical and telecommunications applications, and as corrugated pipe for drains and sewers. While comparatively small, demand for fiberglass pipe will post well above average gains, reflecting growth in extreme environment applications. World Plastic Pipe (published 12/2008, 358 pgs.) is available for $5,700 from The Freedonia Group [2], 767 Beta Drive, Cleveland, OH 44143-2326. News Business Notes Newsreel Business Meetings & Events Meters, electrical Pipe, HDPE HDPE
Source URL: http://pipelineandgasjournal.com/global-demand-plastic-pipe-rise Links: [1] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/demand.PNG [2] http://www.freedoniagroup.com
10/12/2009
Political Changes, Younger Workforce On Minds Of SCADA, Telecommunications E... Page 1 of 6

Home > Political Changes, Younger Workforce On Minds Of SCADA, Telecommunications Experts
Political Changes, Younger Workforce On Minds Of SCADA, Telecommunications Experts

The new administration in Washington will mean changes at the Federal Communications Commission which will likely have a significant effect on oil and gas operators involved in the specialized field of energy telecommunications. Yet that is just one of the issues that concerns operators. Attracting a younger workforce, ensuring the security of their SCADA systems and network separation are also high on their list of issues, as leaders of the Energy Telecommunications & Electrical Association (ENTELEC) explained in an exclusive roundtable. The panelists include Greg Vaughn, Dan Mueller, Brian Gore and Jack Richards. Vaughn is serving as ENTELEC president this year. He is with Kinder Morgan Energy Partners. Mueller, who is with EPCO, Inc., and Gore, with Boardwalk Pipeline Partners, are members of the board of directors. Jack Richards, with Keller and Heckman, LLP, is the long-time ENTELEC General Counsel. What are the oil and gas industry companies doing to attract young workers to areas such as SCADA and telecommunications? Vaughn: It seems that most of the oil and gas industry is aware of the age gap that has presented itself across many of the functional areas within their companies. Most of us have active programs to engage students for part-time and full-time activities that typically occur through the summer months while they are on break. Some companies are also able to provide part-time work to students that are interested during the school year. These programs help identify strong candidates for future employment and promote awareness of our company and industry to a younger group. For those of us involved in industry-related groups such as ENTELEC this is often a topic of discussion. Within these organizations we try to offer opportunities such as job fairs or free admission to various events that we hope help promote our industry and our field to college students who are studying for technical degrees. Mueller: Via Human Resources, we are partnering with numerous universities to provide internship opportunities for engineering students and will be working to create a similar program for technicians in the field. Gore: Quality SCADA and telecommunications personnel can be difficult to locate. Boardwalk SCADA leaders attract young SCADA and telecommunications personnel
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through networking with university peers, teaching efforts and seminars at universities, and other social networking events. Students studying computer engineering learn the proper combination of computer science and electrical engineering skills required for the SCADA and telecommunications field. Military personnel entering the civilian workforce can be excellent candidates for the SCADA and telecommunications fields. Fortunately, the oil and gas industry and the military have somewhat similar communication requirements; both need high availability services that are resilient to harsh conditions while providing multiple backup paths to ensure constant communications. Military personnel gain an excellent understanding of radios, voice, and some basic networking skills. The basic knowledge of networking has become increasingly more important, given most oil and gas field devices are IP-enabled. Do you see any changes at the Federal Communications Commission as a result of the Obama administration that will affect the oil and gas industry? Is the oil and gas industry able to satisfy its spectrum requirements for SCADA, highspeed broadband and other new technologies? Mueller: Concerning the industrys spectrum requirements, the newer technologies are sufficient in the more populated metropolitan areas but there are still needs in the offshore environment and in the more rural areas where a tremendous amount of our assets are located that need connectivity. Gore: The FCC will most likely see changes as a result of the new administration. I am going to defer this to Jack Richards as he specializes in this area. Richards: Certainly there will be changes at the FCC under the Obama administration, and many of them will affect the oil and gas industry. Although the FCC is an independent agency (i.e., not under the direct control of the White House), the president nominates the chairperson who sets the regulatory tone. A majority of the commissioners also is required by law to reflect the political party of the administration. So as the commission transforms from a Republican to a Democratic majority, so, too, will the priorities and focus of the agency. Energy issues in particular have moved to the forefront of our national policy debate, and the new FCC must step up to the plate and do its part to ensure that energy companies have adequate spectrum to support their operations. At the same time, the new FCC can be expected to press forward with new and expanded broadband opportunities for all users, in part to combat the economic challenges facing the country. The oil and gas industry relies on the FCC to support its extensive communications requirements. Oil and gas companies install, operate and maintain countless communications facilities, including mobile radios in vehicles, portable handheld units, wireless laptops, point-to-point and point-to-multipoint microwave systems for SCADA, IP-based broadband networks and fiber links. To operate successfully, many of these systems are dependent on the availability of sufficient radio spectrum. But to obtain access to radio spectrum, the oil and gas industry often must compete at the FCC with commercial providers such as cellular, personal communications services or advanced wireless licensees. When allocating spectrum and assigning licenses, the FCC has historically favored these types of consumer-friendly commercial providers over oil and gas companies and other industrial users. In fact, for many years, the amount of spectrum available for use by oil and gas companies actually was
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decreasing as the commission re-allocated critical industrial radio spectrum for other purposes. This historic approach may change as the Obama administration takes control of the FCC. Improving the economy, facilitating energy independence and promoting broadband deployment will be top priorities for the new FCC. As part of that effort, the commission may well focus on satisfying the broadband and other communications requirements of oil and gas companies. Within the last year or so, the situation at the FCC has been gradually improving for energy companies. For example, at the request of the American Petroleum Institute, the FCC reversed itself and allocated 66.5 MHz of spectrum in the 2.5 GHz band (the same band that Clearwire is using to roll out 4G WiMAX services terrestrially) for use on platforms in the Gulf of Mexico. This band offers tremendous potential for offshore companies to provide IP-based broadband services. The FCC also opened up a large block of spectrum in the 3650-3700 MHz band (3.65 GHz) throughout the United States. While technical restrictions may apply, the 3.65 GHz band is available for fixed and mobile operations on a nationwide, non-exclusive and non-auctioned basis. The 3.65 GHz band represents a unique opportunity for oil and gas companies and other private wireless users to deploy point-to-multipoint broadband services. Within the last few months, the FCC decided to allow low power devices to operate on certain portions of the television broadcast spectrum. As long as no interference is caused to TV broadcasters, the FCCs new rules allow wireless devices to operate in the TV broadcast spectrum on a secondary basis at locations where channels are not being used for authorized broadcast services (called TV White Spaces). This spectrum, too, may be useful to oil and gas companies. There are no promises when it comes to predicting action by the FCC. But with these types of new spectrum opportunities, coupled with a new administration that is focused on improving the economy, facilitating energy independence and promoting broadband deployment, the oil and gas industry may be well-positioned to satisfy its spectrum requirements for SCADA, high-speed broadband and other new technologies in the years ahead. Is wireless for business and SCADA still secure? As the availability of leased services becomes more robust (MPLS, Wimax, Wifi etc.), does your company still consider company-owned infrastructure (private microwave, voice and data radio systems etc.) a key primary and/or backup for these services? Vaughn: At this point we rarely use wireless systems within our networks for business network connectivity. When we do it is kept very secure through internal processes and authentication methods. This remains an area that we will continue to monitor and evaluate. For data gathering into SCADA and other control systems various wireless products are used. These are the typically spread-spectrum, MAS, and satellite-data systems. In terms of services, we are open to advanced offerings from our network providers. We continue to use private microwave and our own radio systems as the primary communications media where it makes sense to do so. We will frequently enhance our internal systems or provide alternate routing through vendors that can provide MPLS or similar services. As with most decisions this is driven by cost analysis. If we can save
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money and improve services we will pursue the private or the public provider options as they become available. Mueller: We still use a significant amount of private microwave as a primary transport for critical voice, data and video information within our communications network. The primary transport is licensed, but we do utilize some unlicensed systems if the application fits. We also utilize private microwave as a backup to robust leased circuits. As a general rule, we do not traverse the Internet with any critical data, so for the leased wireless systems that we utilize, we will deploy a back-haul circuit directly to the vendor of choice to connect to our private network. Most of the leased wireless systems are utilized as a backup circuit. While cellular phones have almost become the primary form of voice communications, we still have regional private voice radio systems that support the field operations. Gore: Wireless is secure for both business and SCADA, given the proper implementation. Administrators have many tools to help defend against attacks. If used correctly, wireless can be a secure tool for business and SCADA. Company-owned infrastructure can be valuable to Boardwalks telecommunication services. Where applicable, we use microwave, data/voice radios, and wifi. However, with the availability of robust leased services, our company takes advantage of many different types of communication methods, depending on the application, location, and priority of the site. As it relates to your overall communications/network infrastructure, is your company pursuing an overall strategy to isolate critical SCADA and process controls information from your corporate network? If so, is it a physical separation, a virtual separation or a hybrid of the two? Vaughn: Providing a separate SCADA network has become a best practice within the industry. As you read any of the various policy or best practice guides, they unanimously call for the SCADA infrastructure being on a separate network. Since the initial networks were put in place, the products pipelines have typically maintained separate networks for their SCADA systems. Within the natural gas industry, it seems that as the network capabilities were enhanced in the late 1980s and as data requirements for electronic flow measurement (EFM) were defined through the early 1990s, the business networks grew from networks initially installed for real-time and EFM-data handling. As the business networking needs increased due to growth in the usage of e-mail, client-server based systems, and file transfers the needs of the business users began to impact the data update rates of the SCADA systems. By the time that we experienced the events of 9/11 and the increased awareness of security, most companies that had not separated their SCADA and business networks began to explore network-separation projects. In terms of the type of separation that is being provided, that is a decision each company has to make as they determine the risks and costs of each method of separation. Many SCADA networks that were originally installed as physically separate networks will likely continue to provide a complete physical separation. For companies that developed projects to split networks you will frequently find the hybrid separations. One common path that companies follow is to provide dedicated SCADA infrastructure within the primary and backup data centers, and then provide virtual separation on the wide area network links down to the field or remote office-based locations.
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Mueller: We are utilizing a hybrid of physical and virtual separation processes to isolate critical SCADA and process controls information from our corporate network. Gore: Boardwalk is actively participating with our peers within the natural gas transmission community and the INGAA Security Task Group. Our goal is to develop a consistent strategy to provide best practices for our industry as a whole. Boardwalk employs a combination of physical and logical separation of the SCADA and corporate networks. We intend to incorporate enhancements developed through our work with our peers and INGAA to further secure our computing environment. Boardwalk is committed to providing a secure environment for both SCADA and business systems. Panelists Greg Vaughn, ENTELEC President 2008-2009, Kinder Morgan Energy Partners, 713369-8830, Greg_vaughn@kindermorgan.com [1]. Vaughn, P.E. is the IT DirectorSCADA at Kinder Morgan Energy Partners. He has been employed in various SCADA related positions since earning a bachelor of science degree in electrical engineering from the University of Tulsa in 1985. Dan Mueller, ENTELEC Board of Directors, EPCO, Inc., 210-528-3829, dmueller@eprod.com [2]. Mueller is director of communications for EPCO, Inc. He has 24 years of experience in the communications field, primarily in the oil and gas industry. After completing his military service and college efforts, Dan worked for Valero Energy where he obtained most of his microwave, SCADA, radio systems and phone system experience. Brian Gore, ENTELEC Board of Directors, Boardwalk Pipeline Partners, 713-479-8145, Brian.gore@bwpmlp.com [3]. Gore is a senior network and security architect for Boardwalk Pipeline Partners in Houston, TX. He has designed and supported the LAN/WAN/SCADA infrastructure for Boardwalk for eight years. He supported the network infrastructure for Entergy Koch Trading, the server systems for First Data Information Management Group and the computers of the Flight Crew Operations Division for NASA at the Johnson Space Center. He has worked in the IT field for 13 years. Jack Richards, ENTELEC General Counsel, Keller and Heckman, LLP, 202-434-4210, richards@khlaw.com [4]. Richards is a partner in the Washington, DC law firm of Keller and Heckman LLP (www.khlaw.com [5]). Prior to joining Keller and Heckman in 1986, he served 10 years as an attorney at the Federal Communications Commission. He represents petroleum and natural gas companies, electric utilities and others before the FCC and elsewhere on licensing, regulatory and telecommunications transactional matters. He also serves as counsel to the API on telecommunications matters at the FCC. His responses in this article reflect his personal views and not necessarily those of any of his clients. Q&A Q&A Basic Systems, Inc. Control Devices, Inc. Gas Products Inc. Microwave Data Systems Inc. Mueller Company Pipeline Products, Inc. Tulsa Gas Technologies Wireless Data Communications Computers, gas flow Computers, handheld Employment services Engineering services Flow measurement & control systems Power systems, remote Radios, data Radios, microwave Scada systems Wireless communications Wireless Data government
Source URL: http://pipelineandgasjournal.com/political-changes-younger-workforce-minds-scadatelecommunications-experts
10/12/2009
Links: [1] mailto:Greg_vaughn@kindermorgan.com [2] mailto:dmueller@eprod.com [3] mailto:Brian.gore@bwpmlp.com [4] mailto:richards@khlaw.com [5] http://www.khlaw.com
10/12/2009
Operating Conference Roundtable Focuses On Integrity Management
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Home > Operating Conference Roundtable Focuses On Integrity Management

By Bernd J. Selig, Process Performance Improvement Consultants ( (P-PIC), Hartford, CT
The Southern Gas Association (SGA) holds an annual conference at which many subjects are discussed involving gas transmission and distribution operations. Topics are chosen by the participants and, while some short presentations are provided, most of the time is spent in peer-to-peer discussions of specific, present-day issues of concern to pipeline operators. This article summarizes some of the relevant issues discussed at the July 2008 Transmission Integrity Management Program (TIMP) roundtable held in Atlanta. The TIMP sessions were co-chaired by Garry Matocha, Principal Engineer of Spectra Energy and Virgil Wallace, Senior Pipeline Integrity Engineer of Williams. The roundtable began with four presentations providing background on successes and effects on operators of the IMP regulations. The presentations also set the stage for subsequent discussions among operators and service providers. Dave Johnson of Panhandle Energy and chair of the Interstate Natural Gas Association of America (INGAA) Pipeline Safety Committee led off discussing what the industry has learned to date from performing integrity assessments and the PHMSA IMP audits. In high-consequence area (HCAs) - the focus of the regulations - there have been 0.05 immediate repairs per mile and 0.14 scheduled repairs per mile, since inception of the regulations. Immediate response conditions are being conservatively classified. The industry has an effective suite of tools inline inspection (ILI), engineered pressure tests and direct assessment and it has capable service providers to apply them.
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There remains a need for new technology. Representatives of the industry, service providers and PHMSA are working to establish additional inspection tools such as Guided Wave Ultrasonic Technology (GWUT). The process for using GWUT is advancing successfully and is now embodied in a document referred to as the 18 Points. This is a consensus document developed jointly by PHMSA and INGAA. (http://primis.phmsa.dot.gov/gasimp/docs/GuidedWaveCheckList110107.pdf [2]) Integration of best practices, as well as knowledge advancement and sharing, are effectively taking place. The industry is good at pigging and digging but needs to improve in documentation. While there is no uniform understanding of requirements and enforcement among the PHMSA auditors, the inspection teams expectations appear to be converging. Mark Hereth, a principal at P-PIC, told how IMP has changed what operators do. Operators are formalizing processes and procedures as well as improving documentation of their work. While the regulations and even the supporting consensus standards are largely prescriptive, operators have found multiple paths to solve specific issues. More companies are now making long-term plans to assess their entire systems over 10-15 years It is also becoming clear that operators who successfully apply IMP are finding that they attain a competitive advantage which enables them to obtain special permits for class location changes and operation up to 80% of SMYS. Chris Bullock, senior pipeline integrity engineer with CenterPoint Energy, provided examples of operator experience as what constituted or created a new HCA and why. He also showed how different kinds of corrosion, dents, SCC and weld anomalies have been found as a result of the pipeline assessments. Keith Leewis, a senior fellow with P-PIC, and Dave Johnson, vice president pipeline safety with Panhandle Energy, discussed the status of the following pipeline safety regulations and related consensus standards: NACE SP0169, Control of External Corrosion on Underground or Submerged Metallic Pipeline Systems, and NACE RP0502, Pipeline External Corrosion Direct Assessment Methodology, were both reaffirmed in 2007.
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ASME B31.8, Gas Transmission and Distribution Systems, was modified and reissued in 2007, to include new considerations for dents. ASME B31.8S, Managing System Integrity of Gas Pipelines, is undergoing some modifications including a more comprehensive repair methods table, a modification of the treatment of stress corrosion cracking (SCC) to include near neutral and high ph SCC and a clear definition of failure pressure, Pf. The modified B31.8S should be approved shortly. Roundtable Discussions There were about 15 operating companies on hand to discuss the following topics: How is non-mainline piping being treated when is it part of the IMP? (Blow-offs, crossovers). There was no consensus on approach on whether to consider these lines part of mainline piping or not, and whether they must be included in IMP plans. There has been some internal corrosion found within approximately 100 feet of compressor suction and discharge lines. The non-mainline piping lines are assessed by some operators if they are in an HCA, usually with ultrasonic testing or guided wave technology. It is unclear whether PHMSA approval to use guided wave for other than crossings is required. Direct examination of a length of pipe is always an alternative to the use of ILI, pressure testing or DA. It was suggested that each operator define what is and what is not nonmainline piping, state that clearly in their IMP plans and manage the lines accordingly. Record Keeping Record keeping is labor- and time-intensive. Some software programs make record-keeping/documentation easier. One company uses a Word program for documentation and tracking. One company has an enterprise documentation and tracking system. No one has dedicated personnel for record keeping. It is difficult to determine what must be documented and what does not require documentation.
Direct Assessment Pre-assessment is essential and must be fully applied. Operators are not finding problems with cased crossings; however, access can sometimes be limited by pavement that extends past the casing. Finding a PHMSA no objection path for cased pipe still represents a concern since both DA and ILI sometimes present interpretation difficulties and GWUT even with the 18 points does not always receive a no objection from PHMSA. GWUT is only as good as the operator. Qualification of the operators of the technology is critical and this is reflected in the 18 points. All the participants believe that filling the annulus between the casing and the pipe with a dielectric solution (like wax) was a permanent repair (>25yrs). Operators are finding value in the use of remote monitoring on portions of their system, such as with cathodic protection. Data Integration
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There is a need to determine how to do it effectively with the exponentially increasing amount of data being generated. You should ask yourself what data will be needed in 10 years and then ensure that it is being collected now. Some companies reported having trouble populating databases and getting accurate data from the field. Some use integrated data to grade threats and threat type to determine assessments and prevention and mitigation (P&M) measures. No one has identified P&M measures they dont need. Operators find that CIS (Close Interval Survey) data and other engineering data captured in geographical information systems (GIS) are not necessarily compatible and not easily integrated. It is important to get the GIS and IMP groups together so that data can more readily be integrated and evaluated. One suggested best practice is to GPS all welds and pipe joint numbers as the pipe is installed, record operating temperatures down the pipeline and soil properties observed during construction. Risk Management Is there a value to redoing risk assessments after baselines? They can help establish and re-evaluate P&M measures. Risk assessments also are essential in re-evaluating re-inspection intervals. Participants were unsure if risk ranking had value after the baseline assessments were complete, even though threat assessment remains valuable. Most companies are just using the HCA characteristics and population-driven consequence factor in risk analysis. One company is using cost of life, injuries and other costs for consequence modeling. Continuous Improvement Everyone could use guidance on approaches and processes to effectively add continuous improvement into their IMP. One suggestion was to get the subject matter experts together, evaluate IMP audit results, modify processes and document the process you went through and what changes that prompted. One company is doing this three times per year. INGAA sponsors an IMP metrics program which gathers IMP-specific data on an annual basis (The Impact of the Integrity Management Program on Gas Transmission Pipelines, Summary of Results 2004-2007, INGAA, July 2008). INGAA IMP Metrics team members can use their data to benchmark their performance relative to the group, represented by 120,000 miles of transmission piping, and make improvements to the IMP plan accordingly. The IMP metrics members of 10 pipeline companies have performed more than 400 IMP audits to date. The results of audits can be used to modify the IMP and this is the essence of continuous improvement. Another avenue for continuous improvement is attendance at the SGA roundtables, hearing something new that may apply to your pipeline and adopting that process or technique. There were a number of other issues that were discussed but time and space do not permit presenting them here. Clearly, the participants of these roundtables find them extremely useful and an effective use of their time. The SGA TIMP roundtable Web page describes the session and provides a link to a short De-Brief Web Conference (audio and slides) by the session chair and vice chair. Visit http://www.southerngas.org/EVENTS/OpCon_TIMP_RoundTable.htm [3]
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Author Bernd J. Selig is an associate with Process Performance Improvement Consultants (PPIC). He has more than 40 years of experience in the power, equipment insurance and pipeline industries. He has been a member of ASME, ANS and NACE, was an accreditor of mechanical engineering departments for six years and served as a member of ASME's Board on Research & Technology Development. He has written numerous articles and technical papers during his career. Recently, he was the editor of ASME's B31.8S supplement to B31.8, Integrity Management Programs for Gas Pipelines and B31Q Pipeline Personnel Qualification. Q&A Q&A Features Cathodic Technology Performance Pipe Construction Management Corrosion control monitoring Energy management GIS Pipe protection systems Pipe, internal, inspection Power systems, remote Risk Management Safety equipment Tools Ultrasonic Inspection Weld Inspection
Source URL: http://pipelineandgasjournal.com/operating-conference-roundtable-focuses-integritymanagement Links: [1] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/SGAoneCo.png [2] http://primis.phmsa.dot.gov/gasimp/docs/GuidedWaveCheckList110107.pdf [3] http://www.southerngas.org/EVENTS/OpCon_TIMP_RoundTable.htm
10/12/2009
PCCA Enjoys Strong, Productive Year
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Home > PCCA Enjoys Strong, Productive Year

By Jeff Griffin, Senior Editor
The year 2008 represented significant accomplishments for the Power and Communications Contractors Association (PCCA) and its members, reports association president Ron Tagliapietra, senior vice president at Michels Corp. "At the end of the year, our membership like the rest of the construction industry was dealing with a down economy," said Tagliapietra. "However, we are facing it with a positive, optimistic attitude. Our association has been through this before, and fairly recently with the telecom crash earlier this decade. Taking guidance from our members, we got lean when times got tough and we've stayed lean even though we have had several very strong years in a row." Tagliapietra said significant accomplishments during 2008 include: Launching of the PCCA Young Construction Professionals educational program; Continued cooperation with the staffs of the USDA's Rural Development Utility Program (RDUP) and the Association of Communications Engineers (ACE) about amending the RDUP 515 construction contract for telecommunications systems; Informing and educating members about vital industry issues, including the importance of locating and marking utilities before construction and ways of mitigating risks associated with utility hits; and Outreach to prospective new members and educating the industry about the value of PCCA programs and services. Tagliapietra added that the association continues to work hard to make meetings productive and informative with programs that provide the opportunity for dialog among members. "We had a very productive 2008 annual convention in February and an excellent mid year meeting in August," he said. YCP program Tagliapietra added that he is very proud of development and implementation of the Young Construction Professionals (YCP) program. "Whether the economy is up or it's down, our people need the skills to help their companies succeed," he explained. "The YCP program helps supply those skills to our up and coming leaders. In the classroom, during our Construction Industry Roundtables, and in the informal mentoring during our meetings, we bring together the
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young and the old, the experienced and the less experienced but enthusiastic. We all learn from each other, and we have a good time doing it." Regarding the RDUP program, Tagliapietra said that a PCCA delegation met with RDUP officials and ACE members in August for a frank exchange of experiences and opinions. A group that includes members of PCCA, ACE, the Organization for the Promotion and Advancement of Small Telecommunications Companies (OPASTCO), and the National Telecommunications Cooperative Association (NTCA) is preparing a document of suggested contract revisions that will be presented at the ACE summer meeting in Washington, D.C. Kevin Mason and Greg Spalj represent PCCA on this group. Tagliapietra said PCCA's top priority in 2009 is to help keep all industry colleagues productive and profitable in the changing economy. "For example," he said, "at the 2009 PCCA Convention Feb. 27 through March 4, we will have a session on wind energy, an industry sector that seems to really be taking off. Many of our members are already building wind farms, and many more will be exploring opportunities as the Obama administration pushes its renewable energy agenda. We also have a session explaining the smart grid for electric utilities and discussing opportunities in both electric distribution and communications. Another session is about steps that can assist contractors in getting paid for the work they do. He said The PCCA Journal will continue focusing on new opportunities like wind energy, broadband over power lines, and the smart grid, as well as our bread and butter work, industry news, safety, human resources and legal issues. The YCP will have a full program at the 2009 annual convention and will also hold sessions at the mid year meeting in July. The RDUP Task Force will continue its work on contract revisions with a report due in August. Founded in 1945, the PCCA is composed of leading construction, manufacturing, supply and service companies in the United States, Canada and Mexico. In addition to the telecommunications and power industries, PCCA contractors do both open cut and trenchless construction for natural gas and oil pipelines and water and sewer utilities. PCCA is headquartered in Alexandria, VA. FOR MORE INFORMATION: PCCA: (703) 212-7734, www.pccaweb.org [1] News Features Michels Corporation Mideast
Source URL: http://pipelineandgasjournal.com/pcca-enjoys-strong-productive-year Links: [1] http://www.pccaweb.org
10/12/2009
DCA Members "Cautiously Optimistic" About 2009 Market
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Home > DCA Members "Cautiously Optimistic" About 2009 Market

By Jeff Griffin, Senior Editor
Despite a troubled economy that is causing problems in many segments of construction, 2008 ended strong for most members of the Distribution Contractors Association (DCA). "Although the slowdown in housing construction has affected the construction of new distribution gas pipelines, DCA contractors have taken advantage of their diverse capabilities, and most of our members are working at full strength," said DCA President Anthony (Tony) R. Deusenbery, who led the association in 2008. "In reviewing the man hours worked by member employees in 2008," he added, "they remain ahead of the previous two years, even through October and November, indicating our contractors are finding work outside the housing market." The work has included pipeline integrity support, facility construction, ongoing blanket work, major pipelines, blanket contracts, directional drilling services and related infrastructure projects. Deusenbery said factors contributing to the hard won prosperity for DCA members include making sound management decisions, flexibility and continuing demand for energy in the United States. Active association Reflecting on the months he has been president, Deusenbery said the association sponsored several successful events, participated in multiple trade shows throughout the country and improved several services DCA provides to its members. Significant improvements were made to the monthly newsletter, DCA News, with more industry news and the addition of a timely lead article about member projects and industry topics. In addition, the association implemented a transition plan to prepare for the scheduled retirement in 2009 of Executive Vice President Dennis Kennedy. Deusenbery added that the board of directors provided leadership and coordination between committees and DCA staff. Accomplishments of key committees in 2008 included:
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Membership and marketing 10 percent increased membership in both contractor and associate member categories; Labor Organized labor agreements are in place, and for signatory contractor members, the DCA web site added increased content on wages and benefits to aid members in preparing bids; Horizontal Directional Drilling Continued to demonstrate the leadership in this specialized field with presentations on emerging technology and regulatory challenges; Safety and risk management Improved the format of the association safety award and safety congress; Technical Provided topics for meetings that gave attendees timely information not available at any other venue; Scholarship Funding for the DCA Dale R. Michels Scholarship was increased, and the Lyons' Family Foundation Grants have provided increased assistance to member companies' employees in need of one time emergency funds; Executive/Finance Strengthened the financial base with initiatives for funding; and Recognition Facilitated the selection of key industry contributors for their achievements. Gaining workers In 2008, there was a shortage of skilled craftsmen and experienced foremen. During 2009, Deusenbery said a key issue will continue to be communicating the opportunities offered by careers in construction in order to encourage young workers to take advantage of these opportunities and the benefits they offer. The current labor situation may provide this opening. "We will continue to work with other associations and organizations to spread the message about the need to attract new employees and retain skilled construction workers, and to address safety and environmental issues," Deusenbery said. The declining number of housing starts has a negative effect on the economy and is a major concern that must be monitored, he added. Credit market disruption, financial market unrest and uncertain of a new administration contribute to the apprehension of 2009. However, Deusenbery expressed hope that home mortgage rates will remain low and help encourage demand for new home construction. A positive note going into the new year is continued demand for natural gas. "The majority of our member contractors, Deusenbery said, "remain cautiously optimistic about the future, given their past performance." Deusenbery is vice president and safety director for Otis Eastern Service Inc., Wellsville, NY. His term as DCA president ends at the association's 48th annual meeting in late February when new President Shepard T. Poole, began a one year term. Poole is president and chief operating officer for the Hallen Construction Co., Island Park, NY. Based in Richardson, TX, DCA serves as a link between its members and government agencies, organized labor and other industry organizations. The association tracks governmental issues affecting distribution contractors, and keeps members informed of the latest developments on the industry's regulatory and legislative fronts with monthly and on line newsletters and updates.
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The association provides members with a labor relations service, negotiating collective bargaining and national distribution agreements and maintains alliances with other industry groups to pool resources, ideas, and information in order to help members operate their businesses more efficiently. FOR MORE INFORMATION: Distribution Contractors Association, (972) 680-0261, www.dca-online.org [1] News Business Notes Features Construction Management Contractor, mainline Contractor, station Directional drilling equipment Gas distribution contractor Pipeline construction equipment Pipeline contractor Safety equipment conference DCA human interest
Source URL: http://pipelineandgasjournal.com/dca-members-cautiously-optimistic-about-2009-market Links: [1] http://www.dca-online.org
10/12/2009
Cyber Security And The Pipeline Control System
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Home > Cyber Security And The Pipeline Control System

By Eric J. Byres, P.Eng., Lantzville, BC, Canada
In the winter of 2002-2003, Venezuela found itself in the grip of the largest and longest strike in Latin American history. Lasting from Dec. 2 until Feb. 2, the strike paralyzed the oil industry through work stoppages and acts of sabotage. According to a published report at the time, Ali Rodriguez, the head of Petrleos de Venezuela, S.A. (PDVSA), stated: "[...] we have suffered many acts of sabotage at the terminals, the refineries, and even to some wellheads in Lake Maracaibo. There were even instances of computer hacking which did a lot of damage since much of the operation is centrally controlled by computer." Details of the cyber attacks on PDVSAs systems were slow to emerge, but it seemed that hackers were able to penetrate the SCADA system responsible for tanker loading at a marine terminal in eastern Venezuela. Once inside, the hackers erased the programs in the programmable logic controllers (PLCs) operating the facility, preventing tanker loading for eight hours. Fortunately for PDVSA, the tactics of attackers were unsophisticated, making detection of the problem relatively easy, and backups of the PLC programs were unaffected, making recovery straightforward. Two years later a book by Thomas Reed, senior U.S. national security official, made it clear that not all pipeline operators are so lucky. In his book, At The Abyss, Reed reported how the U.S. allowed the USSR to steal pipeline control software from a Canadian company. Unknown to the Russians, this software included malicious code (known as a Trojan horse) that caused a major explosion of the Trans-Siberian gas pipeline in June 1982. The Trojan ran during a pressure test on the pipeline and massively increased the usual pressure, causing the explosion. Reed writes: "In order to disrupt the Soviet gas supply, its hard currency earnings from the West, and the internal Russian economy, the pipeline software that was to run the pumps, turbines, and valves was programmed to go haywire, after a decent interval, to reset pump speeds and valve settings to produce pressures far beyond those acceptable to pipeline joints and welds. By creating an explosion with the power of a three-kiloton nuclear weapon, the U.S. managed to disrupt supplies of gas and consequential foreign currency earnings of the Soviet Union for over a year.
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These instances of computer hacking were the first public examples of the susceptibility of oil and gas operations to deliberate external cyber attacks on control systems. For many companies it forced a complete re-evaluation of what cyber security meant when it came to oil and gas SCADA-control systems. Misunderstanding The Risk Internal surveys at several major oil companies indicated that managers often misunderstand the situation they face when it comes to SCADA security. First, many believe that the Information Technology (IT) group automatically looks after SCADA security as well. This is rarely the case. While IT departments are very good at providing security for systems they understand, such as Windows servers and accounting databases, the critical control systems that run the pipelines and refineries day in and day out are forbidding beasts to the IT professional. For example, instead of the typical IT operating systems and applications like Windows and MS-Word, many control systems have unusual operating systems and applications such as VxWorks or RSLogix. This means that many of the proven IT security solutions will not function correctly or, if they do run, may interfere with the SCADA operations. A good example of this was reported at an ISA Industrial Security Conference in Philadelphia a few years ago. When an emergency shutdown system on a boiler failed to operate correctly, investigators discovered that anti-virus software had been installed on the computer used to configure the safety system. This software blocked the proper operation of the safety system, putting the entire plant at risk. There was nothing wrong with the safety system or the anti-virus software on their own, but together they made a life-threatening combination. The result is that many IT departments quietly wash their hands of a security responsibility once a piece of network or computer hardware is attached to the SCADA network. And if the SCADA operations/engineering team doesnt take up cyber security as its responsibility, this leaves a nice gap that the hacker or virus can silently slip though. Wrong Assumptions Many managers also assume that all cyber-security problems arise from outside the company premises, generally from hackers. Next, they assume those problems that attempt to enter the company SCADA system come through obvious pathways that can be managed by a single Bastion Firewall between the business network and the SCADA network. Unfortunately, when problems originate from within the company, as they often do, the Bastion firewall does little to help, leaving the SCADA system an easy target for disruption. To understand where the Bastion model fails, it is helpful to look at an Internet worm called the Slammer Worm and study how it has affected control systems since its creation in 2003. According to records in the Repository for Industrial Security Incidents (RISI), this one worm has been responsible for more documented incidents of process disruption than any other source. A few of its dubious achievements include interrupting power distribution SCADA systems, infecting the safety parameter display system (SPDS) in a nuclear plant and curtailing oil production operations in the Gulf of Mexico.
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What is particularly interesting is that the Slammer Worm has used at least five different pathways to get to its control-system victims. In one case it got into a petroleum control system via a maintenance laptop that was used at home (and infected) and then brought into the plant. In another case it infected a paper machine human machine interface (HMI) via a dial-up modem that was used for remote support. In the third case it passed right through a poorly configured firewall. In all these examples there were firewalls in place, but the worm either bypassed them by using a secondary pathway, or it took advantage of some flaw in the firewalls deployment. Slammer is just one example. An analysis of 75 security incidents against controls systems between 2002 and 2006 shows that more than half the external attacks come through secondary pathways such as dial-up connections, wireless systems and mobile devices. In these cases, the firewall did its job, but the security strategy failed.
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The Leaky Data Pipeline The third cause of SCADA insecurity is a flaw in SCADA network design. For many years, just keeping systems communicating was a primary challenge for the SCADA engineer. Communications technology was expensive and rather unreliable, so any network that promised to solve these issues was welcome. The emergence of Ethernet, TCP/IP and Web technologies radically changed this equation. The result was the creation of control networks that acted as common pathways for all industrial control communications. When a new control application needed a network to transport its data on, too often the answer was well connect it to the control network. Within a few years, any clear understanding of exactly what devices were attached to most corporate control networks or what traffic was traveling over the network, was impossible. For example, after one U.S. refinery conducted an analysis of it control systems traffic as part of security review, the systems manager commented: We discovered misconfigured computers and devices generating traffic that never should have been on our control system. Like an unattended pipeline in a third-world country, well-intentioned staff had been tapping into the control system network for years to add or access network traffic. Over time the result was an unreliable and insecure SCADA system. Illustration one Infection Pathways into the Control System.tif [2] Illustration #1: Attack routes taken. In 75 incidents from 2002 to 2006, attackers and viruses infiltrated SCADA systems via secondary pathways nearly 50% of the time. (Source: Industrial Security Incident Database, June 2006) Getting SCADA Security Under Control How does a company ensure its SCADA system is secure? The answer is spelled out in a new standard called ISA-99.02.01, Security for Industrial Automation and Control Systems: Establishing an Industrial Automation and Control Systems Security Program, approved and published recently by the American National Standards Institute (ANSI). This readable standard lays out seven key steps for creating a Cyber Security Management System (CSMS) for use on SCADA and control systems. The steps in ISA-99.02.01 are divided into three fundamental categories: Risk Analysis, Addressing Risk with the CSMS, and Monitoring and Improving the CSMS.
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The first category lays out the stages a company needs to follow to both assess its current security situation and determine what security goals it wants to achieve. The second category outlines the processes to define security policy, security organization and security awareness in the company and provides recommendations for security countermeasures to improve SCADA security. The core idea in this section is a concept known as Defense-in-Depth, where security solutions are carefully layered to provide multiple hurdles to attackers and viruses. The final category describes methods to make sure a SCADA system not only stays in compliance with the CSMS but follows a continuous improvement program. More Than Just Improved Security The benefits for oil and gas companies that have followed the ISA-99.02.01 program (or a similar program) extend far beyond just reducing the possibility of attack from a hacker or virus. By cleaning up both the corporate processes concerning SCADA systems and better managing the actual traffic on the control system networks, many companies have realized significant improvements in overall system reliability.
Illustration two Honeywell Industrial Ethernet Security Appliace.jpg
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Illustration #2: Low-cost industrial security appliances are designed to protect SCADA and control devices by providing defense-in-depth protection. (Source: Honeywell) One senior manager of a European oil company recently noted that each time they put a refinery through a SCADA security-improvement program, the increase in production reliability justifies the cost of the security program alone. The increased security ends up being just an extra benefit. On the other hand, failure to adapt corporate SCADA systems to the changing threats and vulnerabilities of the cyber world will leave companies exposed to increasing numbers of security incidents. The consequences unfortunately could include a marred reputation, environmental releases, production and financial loss, and perhaps even human injury or death. Author Eric Byres, P.Eng., is chief technology officer of Byres Security Inc., Lantzville, BC, Canada. He can be reached eric@ByresSecurity.com [4]. News Business Notes Features Control Devices, Inc. Pipeline Equipment, Pressure Systems, Inc. Supply Solutions U.S. Pipeline Inc. Wireless Data Communications Controllers, programmable Controllers, valve Loss Control Power systems, remote Pressure controls Process control systems Risk Management Safety equipment Scada systems Software Turbines, gas Valves, control Wireless communications Wireless Data Inc.
Source URL: http://pipelineandgasjournal.com/cyber-security-and-pipeline-control-system Links: [1] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/Picture1- Pie Chart.jpg.png [2] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/Illustration one Infection Pathways into the Control System.tif [3] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/Illustration two Honeywell Industrial Ethernet Security Appliace.jpg [4] mailto:eric@ByresSecurity.com
10/12/2009
Global State Of Energy Industry Information Security
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Home > Global State Of Energy Industry Information Security

By Ray Slocumb, Partner, Houston Advisory Practice Leader, PricewaterhouseCoopers LLP
With oil prices hovering near $40 a barrel in January 2009, the temptation will exist for energy companies to cut spending. One of the first areas that is likely to be impacted by spending cuts is technology, and, by extension, efforts to bolster information security are at risk. Security issues continue to be of prime importance and should not be sacrificed in light of lower oil prices. As a matter of fact, security and privacy issues are becoming ever more critical and important in the business world as the Internet continues to emerge as the primary tool for sharing information both within an organization and to the public at large. Moreover, the prevalence of laptops and other mobile devices in the business world guarantees that critical data is likely distributed across many locations and accessed by many people, making the need for a robust security and privacy strategy a number one priority for companies today. The energy sector is not immune to this need. Recently, PricewaterhouseCoopers in partnership with CIO Magazine, surveyed a number of CIOs and other executives across a variety of industries, including the energy sector, to determine their approach to privacy and security issues. In addition to collecting data from energy industry executives about their approach to privacy and security, PricewaterhouseCoopers and CIO Magazine offer recommendations to companies to help improve and address security and privacy needs in 2009 and beyond. The energy respondents represent a broad geographical spectrum, with participants from North America, South America, Asia, Europe, Africa and the Middle East. Forty percent reported revenues of greater than US$1B. High-Level Findings Buoyed by high prices prior to the recent fall of oil prices, and the unprecedented levels of demand and new supplies coming on stream for many commodities, energy executives enjoy improved results across a range of key performance indicators for the industry. While improvements in profitability mask substantial increases in operating costs, its clear that one crucial cost center - advancing security and privacy capabilities - has been a strong sector priority for the last couple of years.
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Last year, the survey noted progress was made in creating and filling the security chiefs position. This years results reflect the kinds of strategic advances that companies make when knowledgeable security leadership is firmly in place. Energy respondents report major gains, for example, in implementing an overall security strategy (67% vs. 59% in 2007), actively monitoring information security intelligence (59% vs. 46%), and investing in the capabilities that build employee security awareness - such as training programs (58% vs. 41%) and people dedicated to running them (58% vs. 45%). The survey also notes two other key observations from this years results. The first is that when security breaches occur, they hurt. Asked about the business impacts of security incidents, many sector respondents cite financial losses (38%), lawsuits or an increase in legal exposure (33%) and intellectual property theft (29%). We note, however, that these represent only the impacts respondents know about. Our second key observation is that, despite strategic advances in security and privacy, about four in every 10 respondents cannot answer basic questions about the risks to their information. The select security benchmarks chart indicates the energy industry is more ahead of the curve than other industries, but work still needs to be done.
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Know Where Deficiencies Lie Signs of maturity: Is a culture of compliance taking root and has regulatory compliance declined a bit as a driver of information security spending? Yes, according to sector respondents, who cite it as a key driver less often this year than last (61% vs. 70%) - and are now just as likely to reference compliance with internal policies (62% vs. 55%). Its tempting to see this as another sign that compliance is now more deeply embedded within the organization - a view supported by the fact that the sectors are far more likely than the cross-industry average to ensure that information security policies address compliance with legal and regulatory requirements (60% vs. 41%). Other responses, though, suggest that sector executives may not have a full picture of compliance lapses: only 55% audit and monitor user compliance with security policies and a little less than half conduct compliance testing (49%). Privacy protection: Most energy companies arent sure exactly where sensitive data is located. If energy companies are internalizing compliance practices, the trend isnt yet evident in their ability to protect the privacy of customer and employee information. Although doing so requires knowing first where this sensitive data resides, only 35% of energy respondents report that they have an accurate inventory of where personal data for customers and employees is collected, transmitted, and stored. More than half (51%) could begin lowering risk immediately - by implementing some low-cost privacy
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protections such as requiring employees to certify in writing that they are complying with the companys privacy policies. Intellectual property and other critical data: Opportunities to advance key safeguards abound. Also at risk are vast quantities of other important data - such as proprietary exploration and production details, geophysical data and plant security designs. On the one hand, the sectors responses reveal that last years focus on encrypting data in laptops has extended to encrypting data in other media - such as databases (55% vs. 41%), file shares (50% vs. 32%), backup tapes (55% vs. 37%), and removable media (45% vs. 25%). But many sector respondents say their companys information security policies do not address data protection, disclosure and destruction (41%) or classifying the business value of data (66%). Third-party security: trust isnt a strategy. Both capitalizing on new opportunities and ensuring cost-effective operations depend on sharing information with others. Only a minority of sector respondents, however, say their firm conducts security - and privacyrelated due diligence of third parties handling customer or employee information (27%), and even fewer have an inventory of these parties at hand (25%). This is a crucial issue because, as regulators have made clear, companies must, in essence, keep focused on safeguarding data even when it is shared with third-party service providers. Steps to take in the coming year: 1. Get the right people together. If a Chief Information Security Office (CISO) position hasnt been established, consider doing so. Then work to actively engage both business and IT decision-makers in addressing security; today, almost half do not (45%). Also, take a closer look at the positive security benefits that accrue to the 20% of competitors that employ a Chief Privacy Officer (CPO). While not required by most regulations, designating a CPO demonstrates to regulators a serious commitment to privacy protection and can help lower risks by having one executive focused on helping connect the dots. 2. Improve identity management. Controlling access is essential. Although energy sector respondents report advances in deploying centralized user data stores (68% vs. 50%), most say their company has yet to implement systems in many areas - such as reduced/single sign-on software (44%) and automated account deprovisioning (32%). 3. Focus more intensely upon critical security processes. During 2008, the sector has made enormous advances in implementing technical systems, such as content filters (83% vs. 54%), intrusion prevention tools (72% vs. 53%), and tools to discover unauthorized devices (54% vs. 39%). But getting the most value from this technology will require better support from critical processes. Yet, in significant numbers, energy respondents say their organization has not implemented an identity management strategy (53%), integrated security with privacy/compliance plans (63%), or established a business continuity or disaster recovery plan (37%). 4. Strengthen incident response planning. When a security breach occurs, taking the right steps can prevent major impact to business and brand integrity, protect evidence, and help reinforce relationships with customers and regulators. Many competitor companies are not: 47% of sector respondents say their organizations security policies do not address incident response and only 30% have an incident response process to address breaches involving third parties handling data. What should be done? Take a top-down approach. First, ensure a strategic, integrated and holistic approach to incident response staffed by an inter-disciplinary team. Second, plan a consistent set of response procedures for different incidents - including
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those affecting security, privacy and compliance issues. Then, review security and privacy policies and practices and align them with incident-response positioning. And lastly, test the program. In short, many strides have been made to improve security and privacy issues in the energy sector, but certainly more can be done. A solid plan and solid approach today can save significant time, money and resources tomorrow. Author Ray Slocumb is the Houston Office leader for the Advisory practice of PricewaterhouseCoopers. In this capacity he manages over 150 professionals with varying backgrounds and skills related to business and systems consulting. His role includes managing various types of engagements including those related to project management, process improvement, systems integration, systems strategy, ERP consulting and controls, data warehousing, IT Internal Audit, risk management, business process, security and technology services. He also frequently coordinates global PricewaterhouseCoopers resources for multinational clients. Ray is a Certified Information Systems Auditor (CISA) and a Certified Fraud Examiner (CFE). Email: raymond.e.slocumb@us.pwc.com [2]. News Business Notes Features
Source URL: http://pipelineandgasjournal.com/global-state-energy-industry-information-security Links: [1] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/PWCfig1.PNG [2] mailto:raymond.e.slocumb@us.pwc.com
10/12/2009
DNP3 Protocol Recommended For Pipeline, Gathering And Distribution Applications
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Home > DNP3 Protocol Recommended For Pipeline, Gathering And Distribution Applications

By Philip Aubin, P.E., Control Microsystems, Ottawa, Ontario
The Distributed Network Protocol (DNP3) provides many advantages over conventional protocols in a wide range of natural gas applications including the monitoring and control of pipelines, gathering systems and distribution systems. Here are some key reasons why one should consider applying DNP3 for communications with pipeline remote devices. (subhed)What Is DNP3? DNP3 is a protocol that was developed to allow for flexible, secure communications between devices. It excels in telemetry applications, where requirements call for reliable communication with remote devices. These devices might include remote terminal units (RTUs), supervisory control and data acquisition (SCADA) systems, intelligent electronic devices (IEDs) and human-machine interfaces (HMIs). (subhed)Layered Protocol DNP3 is a layered protocol. Starting with the low-level physical communications, each layer adds functionality. The layered model allows DNP3 to be flexible, reliable, and standardized. Standard specifications at each layer make sure that equipment vendors can implement DNP3 protocols that can communication with each other. It is the unique functions and features of the DNP3 layers that lead directly to the benefits explained here that apply to gas transport applications. (subhed)Earlier Protocols There have been many open and proprietary protocols used in the architecture of gas transportation SCADA systems. In most cases these protocols are relatively simple in nature and lacking in the flexibility to provide secure, efficient and reliable data transfer. (subhed)Origins Of DNP3 DNP3 was originally developed in the 1990s to support electrical distribution equipment. The needs of that business drove many features and functions of DNP3, such as support for object-oriented data, including meta-data; support for
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communication over long distances, including satellite systems; high levels of security; and interoperability with a variety of devices. DNP3 was quickly adopted as a standard and a user group was formed in 1993. The protocol proved useful across a host of industries and is increasingly being adopted within the oil and gas industry. As an extensible protocol it continues to grow, allowing for new features to be created without impacting the underlying security and reliable communications capabilities. (subhed)Conclusions The DNP3 protocol offers major advantages over other protocols. These include standardization and interoperability, flexible communications with many options, security, strong support organization, room to grow and saves time and money. Here are some recommendations: 1. Start with a decision to investigate how DNP3 can improve your pipeline operations. 2. 3. Lay out a specific plan for migration. Start small or with wholesale replacement. In either case, you should lay out a full plan for migration. 4. 5. Dont simply replace the old communications devices with new ones. Consider the value that can be achieved by taking advantage of DNP3s features. Be sure to consider remote configuration, standardized data structures, improved reporting, unsolicited event data, and adding security features. 6. 7. Join the DNP3 Users Group, to network with other users and to meet experienced suppliers. 8. News Features Control Microsystems Data acquisition systems Electronic distribution control Satellite communication systems Scada systems
Source URL: http://pipelineandgasjournal.com/dnp3-protocol-recommended-pipeline-gathering-anddistribution-applications
10/12/2009
Best Time To Invest In Building Pipelines Might Be The Next Few Years
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Home > Best Time To Invest In Building Pipelines Might Be The Next Few Years
By Robert E. Hogfoss and Catherine D. Little, Pipeline Practice Group, Hunton & Williams LLP, Atlanta, GA
Few commodities illustrate the macroeconomic realities of supply and demand as well as oil or natural gas. Even OPEC, which controls nearly 40% of the world's oil supply, unhappily finds itself on the tail that is wagged by demand. The recent global economic downturn has predictably affected oil and gas demand and demonstrated to OPEC as well as producers that demand is not perpetually elastic. Decreased demand is likely to continue at least through 2009. Decreases in demand inevitably affect E&P investment, but downward demand trends have another effect that is not often considered: reduced investment in infrastructure, particularly construction of new pipelines. Work on new natural gas infrastructure will continue through 2009 and beyond, if only because many dedicated projects commenced before demand decreased. On the other hand, work on new oil E&P or pipeline projects has already slowed, and that may take longer to return. For a number of reasons, however, the next few years may offer the best opportunity in recent memory, and for the foreseeable future, to make new investments in pipeline infrastructure. Changing Demand The demand for energy generally, and oil and gas specifically, has increased markedly over the past decade. In part, this is due to rapid growth in the economies of China and India; the economic booms in those countries in recent years helped create the first demand driven energy shock, creating rapidly rising and record prices per barrel. Oil consumption in China has more than tripled since 1980 and has doubled in India since 1992. India and China are predicted to approach U.S. oil consumption by 2030, if not before. As demand has risen over the past decade, so has the price of oil. But when the price of oil reached its demand threshold in the U.S. in 2008, consumption behavior changed dramatically and quickly. As the biggest consumer of oil worldwide - at 21-22 million barrels per day (or roughly 25% of the world oil supply) - it was surprising to many observers just how quickly the American public modified its energy consumption habits when faced with higher oil prices.
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Perhaps even more surprising was how quickly the global demand for energy changed in 2008. For the first time in at least 25 years, global demand for oil decreased in 2008. That decrease was driven by the financial decline of Wall Street, as its global impacts became manifest. We are now seeing the effects of the financial sectors collapse, and that event continues to influence energy demand globally, even while the price of oil has dropped significantly. These demand trends tend to mask another development that will continue to affect energy usage in the U.S. in the coming decades: changing demographics across the continental U.S. If oil and gas pipeline planners were to sit down today to draw ideal transportation routes to end users, the resulting infrastructure grid would undoubtedly look quite different than what currently exists, given the distribution of population growth and changes in industrial sector use since the bulk of our current infrastructure was built in the 1950s, 60s and 70s. Of course, infrastructure planning and investment decisions are never aided by something as simple as drawing the most efficient distribution lines on a map. Availability and cost of easements, time and costs associated with permitting, and efforts necessary to resolve public concerns associated with right-of-way (ROW) must all be factored into new infrastructure planning. The transaction costs associated with new ROW and pipeline construction have increased dramatically over the past several decades, largely because of land use and demographic changes, increased permit requirements, etc. These demographic changes, combined with current and anticipated market trends, will continue to affect oil and gas economics for years. So, too, will the increasing costs of continuing to rely on aging existing pipeline infrastructure (higher maintenance and repair costs, increased liability concerns, etc.). All of these factors will affect decision making on investment for new pipeline infrastructure. Natural Gas Future When President-elect Barack Obama introduced key members of his new energy and environmental team in late 2008, he reiterated his goal to make America energyindependent. This is more than just post-campaign hype; both public policy and political mandates are supporting energy independence for the U.S., and that theme further encourages increased development of natural gas resources and infrastructure in the States. Couple the political climate with the fact that the U.S. Energy Information Agency (EIA) predicts that global energy consumption will increase by 50% from 2005 to 2030, according to its International Energy Outlook 2008 (June 2008). Of that, natural gas consumption worldwide is expected to increase from 104 Tcf in 2005 to 158 Tcf in 2030. All of these factors point to continued growth in demand for natural gas and a distinct need for new infrastructure to connect new and unconventional sources to either existing distribution lines or new demand locations. Additionally, the continued legislative, administrative and judicial interests in regulating greenhouse gases (GHG), and in mandating renewable portfolio standards (RPS), suggest there will be an increased reliance in the U.S. on natural gas, as other traditional fossil fuels are transitioned to other sources. Oil Future
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As the price of oil climbed toward record highs over the past few years, unconventional sources of oil were profitable to explore and produce (e.g., shale and oil sands). The economics of those investments changed quickly in 2008, however, and we have already seen reductions in unconventional oil-recovery investment. Many observers predict that both the global and U.S. demand for oil will likely remain on a subdued plateau for the near future, if not decline slightly as natural gas and renewables seek a larger percentage of the energy mix. Demand for oil will never disappear, however, and even as development costs increase, a certain level of demand will always remain (even allowing for peak oil considerations, it is widely agreed that a supply of oil will be available long into the future and that declining supplies will simply affect price). In order to capitalize on changing markets and change in demand, oil interests must carefully examine the future needs for the commodity (both geographically and quantitatively). Investment in new pipeline infrastructure may be more prudent now than ever. Attempts to time the market are rarely successful, whether the issue is financial investment or capital projects. Attempting to plan capital projects as large as new interstate pipelines is even more challenging, as significant assumptions need to be made about long-term projected demand, cost of service, etc. That said, the current political climate is more supportive of infrastructure projects, and of energy independence as a concept, than it has ever been. If costs of building new oil and gas pipeline infrastructure are greater today than several decades ago (due to changes in land-use patterns, more complex permitting requirements, increased public scrutiny and a more litigious society), there is no question that future costs will be even greater. More overlapping demands for land use, increased public scrutiny and more threats of litigation will inevitably develop over time. Permitting regimes will only grow more complex. The oil and gas industry may look back on these next few years as offering a rare window for investment in infrastructure. There is both political and public support for energy independence at present, and there is a clamor from many sectors for more infrastructure improvement projects. Public and political support may never be greater than it is today for new infrastructure associated with energy independence. By way of example, the Securities and Exchange Commission (SEC) recently revised its disclosure requirements for unconventional oil and gas reserves, signaling recognition of increasing investments in companies with such holdings. In a Dec. 29, 2008 statement, SEC Chairman Christopher Cox commented that the revisions will allow consideration of information that is of significance to investors in making informed investment decisions. If the present value costs of future infrastructure projects will only increase over time, and if public and political support for such projects is unlikely to ever be better than today, then the most challenging variable affecting many decision-making processes may be that of projecting future demand. The one certainty is that there will always be demand, for both oil and gas. The how much and where for calculation of that demand variable is a more nuanced consideration, but planners are much more informed on those issues today than they were decades ago during the last major push in infrastructure expansion. Summary
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The U.S. and global economies are both in rare retractions at present. Oil and gas interests are directly affected by those financial developments and it is difficult to predict the near-term future for oil or gas demand. Some things are clear, however: (1) the law of supply and demand clearly does affect oil and gas; and yet (2) there will always be a demand for oil and gas (even though that demand may not be as elastic as was once thought). Declining oil and gas prices provide immediate feedback to E&P investment decisions. Such price declines also affect longer-term decisions such as planning and investment in new oil or gas pipeline infrastructure. Although it may seem counter-intuitive, the authors suggest that now may be one of the best times ever for the oil and gas industry to proceed with new pipeline construction. Permitting and ROW costs and challenges will only increase in the future while both political and public support for new infrastructure that can help lead to energy independence may never be higher. Authors Robert E. Hogfoss is a partner with Hunton & Williams LLP in Atlanta, GA. He leads the firm's Pipeline Practice group. He has practiced for more than 20 years exclusively in the areas of energy, environmental and administrative law, with emphasis on the Pipeline Safety Act, Clean Water Act and Oil Pollution Act issues. rhogfoss@hunton.com [1]. Catherine D. Little is a partner in the Pipeline Practice group with Hunton & Williams LLP. She is based in Atlanta. Her practice focuses on energy-related environmental and administrative law at the federal, state and local levels. clittle@hunton.com [2]. News Business Notes Features government
Source URL: http://pipelineandgasjournal.com/best-time-invest-building-pipelines-might-be-next-fewyears Links: [1] mailto:rhogfoss@hunton.com [2] mailto:clittle@hunton.com
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Process Devised For Monitoring Leak Threats Using GIS
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Home > Process Devised For Monitoring Leak Threats Using GIS

By James Stout, UGI Utilities, Inc., and Tony Sileo, Opvantek, Inc.
This article shares experiences we have gained working with several customers to geo -code leak and pipe inspection reports and associate them with the pipe segment in the GIS that best matches the address location and other attributes of the report. It also discusses GIS data-modeling considerations to facilitate data capture and presentation on the map. Finally, we suggest several on-going business process improvements to ensure threats are captured with sufficient quality and timeliness to support the DIMP regulations. Over the past several years, Pipeline Integrity Management regulations have been implemented for pipelines transporting hazardous liquids (Title 49 CFR Part 192) and natural gas (Title 49 CFR Subpart O). In June 2004, the DOT Inspector General, in testimony before Congress, recommended that the Office of Public Safety within DOTs Pipeline and Hazardous Materials Safety Administration (PHMSA/OPS) require operators of natural gas distribution pipelines to implement an enhanced safety program similar to those used on hazardous liquids and natural gas transmission. As a result, a multi-phase action plan was initiated to proactively gather industry and stakeholder input about any potential safety programs. The first phase of the action plan was completed in 2005 by four multi-stakeholder work/study groups, and resulted in a report on distribution integrity for Gas Distribution Pipelines (PHMSA, December 2005). The report concludes that it would be appropriate to modify existing pipeline safety regulations to convey the concept of a risk-based distribution integrity management process (PHMSA, December 2005). It recommends a high-level, flexible federal regulation, in conjunction with implementation guidance, a nationwide education program, and continuing research and development. The report concludes that significant differences between transmission and distribution pipeline systems, as well as diversity among gas distribution pipeline operators, make it impractical to establish prescriptive requirements. Rather, operators may be required to maintain their own tailored integrity management programs that address seven key elements: 1. 2. 3. 4. Establish a Written Integrity Management Plan. Pipe Infrastructure Knowledge. Threat Identification. Risk Assessment and Prioritization.
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5. Risk Mitigation. 6. Performance Measurement and Adjustment. 7. Regulatory Reporting. The second phase began in January 2006 and involved development of draft regulations by PHMSA in parallel with preparation of guidance materials and standards by industry and government organizations, including the Gas Piping Technology Committee (GPTC). As part of the Pipeline Inspection, Protection, Enforcement, and Safety (PIPES) Act signed in December 2006, congress mandated a federal rule on distribution integrity management by the end of 2007. In a departure from the usual approach aimed at maintaining closer alignment between various stakeholders and the final regulations, the GPTC guidance materials were drafted prior to publishing the final regulatory language, and were essentially ready for initial release by fall 2007. After some delays for cost-benefit analysis and other processes between PHMSA, the Office of Management & Budget, and Congress, the NPRM on Distribution Integrity Management was published in the Federal Register on June 25, 2008. Operators will have 18 months to write and implement their DIMP plans after the final rule is enacted (expected sometime in 2009). Section IV.D (Findings Relative to Leak Management) of the NPRM specifically highlights the importance of an effective leak-management system as part of an overall distribution integrity management program. According to input gathered from stakeholder groups, the essential elements of an effective leak-management program (with a clever embedded acronym) are: Locate the leak. Evaluate its severity. Act appropriately to mitigate the leak. Keep records. Self-assess to determine appropriate additional actions.
This article focuses especially on the first element - locating your leaks, particularly in light of overall DIMP requirements to understand your infrastructure and monitor threats. The proposed DIMP regulations specifically require distribution operators to establish an effective leak-management program (generally as described above). Among other things, the draft GPTC Guidance Materials suggests the following activities relative to leak repair and pipe-inspection reports: Information about an existing system should be updated when new or better information becomes available, including during existing operating or maintenance activities. (3.1(e)). When an operator inspects the pipe whenever it is exposed, the operator should use the occasion to record and evaluate any distribution system unknowns that are available at that location (3.1(f)). Identify threats based on location, such as leak clusters, damage clusters, cathodic protection history, soil resistivity, or localized materials, operating conditions, or environment (4.2(a), 4.3).
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Leak repairs represent the most frequent opportunity to examine and collect information about distribution pipes and the surrounding environment. The draft regulations also require operators to identify additional information that will be collected in the future about the condition of pipes and the surrounding environment to support risk assessment. Integrating information collected during leak repair activities with existing infrastructure knowledge can add significant value and fidelity to on-going risk assessments. For example, by collecting information about the environment surrounding a particular leak, as well as the exact geographic location of the leak, it is possible to incorporate that environmental information into risk assessments on other nearby facilities. Based on a reading of the draft DIMP rule and associated guidance materials, and experience in the industry, the authors believe that capturing the geographic location of leak repairs and pipe-inspection reports, and associating those reports with the specific pipe segment on which the leak or inspection occurred, can significantly improve the overall effectiveness of a distribution integrity management program. While not specifically mandated by the proposed rules, the authors believe that investing in a process and systems to accomplish this objective will help operators illustrate to regulatory authorities that they have implemented an effective leak-management system (as part of their overall DIMP plan). Thus, when reference is made in this article to Locating Your Leaks, the authors mean knowing both the geographic location of the leak (relative to other facilities in the system) as well as the specific facility record on which the leak occurred. UGI Infrastructure UGI Utilities, Inc. distributes natural gas to customers in eastern and northeastern Pennsylvania. Until recently, we have operated a little more than 5,000 miles of main and served over 300,000 customers. Having just purchased PG Energy (now called Penn Natural Gas), we have increased the size of our business by about 50% so that we are now serving almost 500,000 customers and operate almost 8,000 miles of main. In the combined company, 76% of the services are plastic and 13% of them are unprotected metallic services. The remaining metallic services (11%) are cathodically protected in some way. In March 2008 UGI signed an agreement to purchase PPL Gas Utilities Corp. Pending PUC approval, the new company will be called UGI Central Penn Gas. This acquisition will increase UGI customer count by 16% to almost 550,000 and increase its miles of main by another 49% to over 11,500 miles. The distribution of service material type in the combined company will be about the same, percentagewise. DIMP Plans UGI has completed extensive re-engineering of the processes and tools used to collect and maintain data about leaks and repairs on its distribution system. Its previous process was: Leaks were found or re-inspected by roving leak surveyors or those called out on odor calls. Details were captured on a paper leak form. Repairs were documented on separate paper form. Non-leak excavations did not fit this process well. For each repaired leak, the following basic information was collected:
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Field assigned leak identification. Main identification determined by office staff. Political subdivision. Street address. Survey method. Leak location (in street or behind curb). Classification (leak grade). Sketch with readings. Repair action.
The paper forms were keyed into a mainframe system. The original paper was filed by map grid in each leak surveyors office. There are multiple leak surveyor offices throughout the operation area. Some of the shortcomings of this process were that leak locations were not apparent to field personnel; surveyors had to manage paper docs; and old documents were archived in a vault, that is, they were not readily accessible. New Process UGIs new process, started in 2006, was one portion of a multi-year asset management project named FLAME (Field Level Asset Management Environment). In the new process, leak, leak repair, and pipe inspection data is captured electronically, in the field, on new mobile GIS platforms. Initial leak entry is still completed by roving leak surveyors or those called out on odor calls. Repair crews then enter repair details and pipe inspection information on an electronic repair form, accessed from a button on the Leak form. The system also supports non-leak inspections and exposed pipe reports. In addition to the data that was being collected, crews now capture the following additional information: Political subdivision (one click based on spatial location). Leaking facility, including valves or services (not just mains). The suspected facility is selected by field user for open leaks and the actual facility is confirmed by the repair crew. Geometry created to display leak/repair/inspection to all GIS users. Leak-reading values. Sketch captured as mini CAD drawing. The new system stores all leak and repair data in our enterprise RDBMS (Oracle). Records are linked to the geographic location in our enterprise GIS (Smallworld), and sent out to all mobile users the next day. Field sketches are converted to PDF and stored in the Document Management System (Documentum). The sketches are available to all users whether using the mobile system or in the office. During the upgrade, legacy paper documents were scanned and associated with the applicable leak or repair location. Some of the important challenges we had to overcome are listed in Table 1.
Risk Score Distribution
[1]
Challenges UGI Had To Overcome In Re-Engineering The Leak Data Capture Process A process had to be developed to scan the legacy paper documents and properly associate them with the new digital records.
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We were lucky that the old process used people reviewing the leak and repair reports to determine a Main ID. This was keyed in and available digitally for conversion. We elected to manually review active leaks and have a GIS technician place geometry based on the paper document. Repair geometries were automatically placed at the midpoint of the indicated main id. Engineers contemplating repair/replace can review the documents associated with the repairs and correct the positions if needed. Facility locations from legacy base maps are not aligned with true GPS locations. We dont try to capture leak locations using GPS for this reason. The mobile units have GPS merely to get the person close to the right place. Some pipes have been retired and are no longer present in the current database. We were lucky that records were retained for retired pipe. This was an issue for us because retired pipe was given a different Main ID as it was retired, but the new pipe got the main ID of the pipe it replaced. The new system accommodates this by having a unique identifier assigned by the system for each pipe segment. The main ID fields can be anything and not break the database integrity. Leveraging Data And Software For DIMP We now have an integrated system for tracking the discovery, re-inspection and repair of leaks as well as tracking exposed pipe inspections. While all this re-engineering was going on, we also updated our main replacement prioritization software (Optimain DS). This software was originally used by UGI for estimating the economic viability of a main replacement project. It was using data extracted from our mainframe systems for tracking leaks and mains. As described earlier, the link between pipes and leaks was tenuous at best. The other piece of the puzzle was service data. These records were difficult to link to main segments as it was a field in a totally different mainframe system. All these associations had to be maintained manually each time a main segment was replaced, split and/or renumbered. This happens frequently due to our main numbering scheme for hydraulic network modeling. As we went through the steps to upgrade to the next version of Optimain, it became apparent that we could do more with the risk score that had been computed all along. The new FLAME data model provided the important data relationships to make the risk model more effective and coherent. We now have a system that estimates the economic viability of a main replacement job as well as computes a relative risk score based on information already in our database. The links between facilities and reports no longer get broken as they are based on clear and definitive unique identifiers. We can also update most of the important cost and risk values used in calculations to tweak the model as we see fit without needing help from the vendor. The other benefit is that we have data from multiple tables accessible in one place, boiled down to the essentials and related in a way that makes sense. Optimain allows us to visualize the risk on our system with charts likes those shown in Figure 1.
Risk Score Comparison
[2]
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We intend to expand the Optimain risk model going forward as a major part of our DIMP solution. So far we have only scratched the surface of modeling risks associated with services; we intend to expand in this area by taking advantage of our segment by segment service data records that include size, material, coating and vintage. We are also interested in accounting for the influence of geospatial features to risk scores. Adding buildings and other spatial layers like soils data may be valuable. We are also fortunate that our one-call system provides spatial coordinates of tickets. Frequency of locates in a particular area may indicate a need for increased patrolling of different areas at different times. Having or developing an integrated, robust system for storing and organizing data will go a long way toward complying with the new DIMP regulations. Associating Leaks With The Right Pipe In order to assess current risk associated with various threats to the integrity of a distribution network, it is very important to understand the history of leaks on the system. For many common threat categories, including steel corrosion, cast iron breaks, and joint or coupling failures, the number of prior leaks on nearby pipes or joints is statistically correlated with the likelihood that the same type of failure will occur again (in the same general area). When associating leaks with pipes, it is important to consider capturing the location of prior repaired leaks as well as a process and tools for on-going data entry and quality assurance. Several approaches are available to determine how many and which repaired leaks to process: Filter repairs by cause and material to focus on specific threat categories. Cover at least one normal leak survey cycle (two is better) across the entire system. By at least capturing the leaks discovered during the most recent leak survey on every active pipe in the network, a risk-assessment system will initially focus attention on areas with recent corrosion, joint leaks, or other time-correlated threats. When attempting to associate a leak repair with the correct facility in a geographic information system (GIS), there is a series of challenges that must be addressed. These include poor address quality, no zip code or city, multiple candidate address locations, facilities drawn relative to inaccurate (legacy) land-base maps, and retired facilities that are no longer available in the geographic information system (GIS). Geocoding Process To address all of these challenges, it is best to implement a multi-stage approach to leak geocoding and pipe association: 1. Construct Candidate Addresses. For each record, construct a series of possible addresses using each of the possible street aliases and each overlapping zip code. 2. Geocode. Obtain all candidate locations for each candidate address. 3. Find Candidate Facilities. For each candidate location, search (in the GIS) for candidate facilities based on attributes of the repair record (main pipe, service pipe, valve, regulator and material type.). Use a maximum search radius that is based on the relative accuracy of the land-base. Widening the search radius will lead to more false positive matches and will also increase the overall processing time.
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4. Compute Confidence Score. For each candidate facility, use a combination of available attributes in the repair record and the facility record to compute a score indicating the confidence that it is the correct facility. Use the actual proximity as part of the confidence score (preference for facilities that are closer to the address location when all other attributes match). 5. Select Best Location. Select the candidate site and nearby facility with the highest confidence score. Place the leak on the facility, at the point closest to the best address location. It is also worthwhile to retain the following information as part of the process: Coordinates of the best address location. Confidence score. Direct relationship of the leak to the best matched facility. Finally, note that the same basic approach can be applied to match pipe inspection reports or service card locations to the best location in the GIS. What About The Rest? Once all leaks have been processed and matched to the best candidate location and facility, there will be a (hopefully small) set of leaks with either no candidate location, or with confidence score below some established threshold. It may be worth manual intervention on some or all of these remaining leaks to attempt to determine where they belong. When considering this remaining manual effort, it is also feasible to filter the list to include only recent leaks or only leaks of certain types. This determination might be based on an overall threat analysis (e.g., manually review all remaining cast iron breaks, but only look at corrosion leaks from the last five years). Reusable Tools Many of the tools and algorithms constructed for placing the legacy leaks can be reused to provide tools to facilitate on-going placement and quality assurance. When mapping technicians are placing new leaks in the GIS, a tool could automatically present candidate locations based on the address and other data in the leak record. The candidate locations can be rank-ordered using the same facility confidence score used above. The user can then snap the leak (or other record) onto the correct facility with just one or two mouse clicks. In fact, it is even possible to completely automate the placement process, and only trigger manual review or intervention when the confidence score is below a certain threshold. Mobile data capture tools may lead to alternate approaches. Platform restrictions may make it unfeasible to construct the complete facility confidence score on the mobile device. In that case, the score can be computed in the back office as part of a quality control process. Records with low confidence can then be flagged for manual review. It is also important to consider how open leaks will be handled. Open-leak records will normally not include information about the leaking facility (since the leak has not yet been located or repaired - it is simply an indication of gas odorant in the air). Options include assuming default values or posting only the repaired leaks. Assume Default Values. It may be best to assume a conservative set of default facility attributes for an open leak. For example, assume an open leak is on the main pipe (not a service). Then match the closest main pipe (regardless of material). If the closest main is cast iron or plastic, assume a joint or coupling leak (since CI breaks and
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excavation damage normally lead to immediately repaired leaks). If the closest main is steel, assume a corrosion leak. If the steel is allegedly protected, this is also an opportune time to trigger a cathodic protection test. Only Post Repaired Leaks. It may be reasonable to only post-repaired leaks to the GIS, avoiding this problem altogether. However, this is less desirable if the utility carries a large number of open (non-emergency) leaks. Open leaks are normally more recent and thus have a higher impact on current risk assessments. In addition, a complete economic assessment model needs to consider the on-going O&M costs associated with open leaks (more frequent surveys and eventual cost to repair). Authors James Stout is supervisor or pipeline integrity systems integration for UGI Utilities, Inc., Reading, PA. His primary responsibilities are managing leak surveys, administering Optimain from Opvantek and Pipeline Compliance System from American Innovations, contributing to the development of UGIs Mobile GIS application suite, organizing pipeline integrity data and developing various reporting and data translation processes. Tony Sileo is product manager for Opvantek, Inc., Newton, PA. He is responsible for establishing product roadmaps based on customer input and market research, directing product development and support activities, managing customer delivery projects, and participating in consultative sales efforts. Recently, he has been working with Opvanteks LDC customers to expand the capability and coverage of the companys Optimain DS product to meet all aspects of pending distribution integrity regulations. References PHMSA, December 2005, Integrity Management for Gas Distribution Pipelines, Report of Phase 1 Investigations, http://www.cycla.com/opsiswc/docs/S8/P0068/DIMP_Phase1Report_Final.pdf [3]. BSR GPTC Z380.1-2009 TR05-01-200x, GPTC Guide Appendix G-192-8, Distribution Integrity Management Program (DIMP). at http://www.aga.org/Committees/gotocommitteepages/gaspiping/ [4] Federal Register, Vol. 73, No. 123, June 25, 2008, Proposed Rules, pp. 36015-36034 (DIMP Notice of Public Rulemaking) Pipeline Inspection, Protection, Enforcement, and Safety (PIPES) Act of 2006, Pub. L 109-468, Dec 29, 2006. News Features American Innovations Basic Systems, Inc. Cathodic Technology Digital Control, Inc. InLine Services Opvantek, Inc. Performance Pipe Cathodic surveys Coating services, field joint Corrosion control monitoring Data acquisition systems Electronic distribution control Energy management Gas Curb Valves GIS Odorant analysis Pipe protection systems Pipe, inspection Pipe, location services Pipe, supports, systems Pipeline Integrity Management/Compliance Process control systems Project management Risk Management Survey services, distribution Survey services, transmission Tools Valve repair Valves, control Valves, plastic
Source URL: http://pipelineandgasjournal.com/process-devised-monitoring-leak-threats-using-gis
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Links: [1] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/Fig 1 first graph Risk_Score_Distribution.jpg [2] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/Fig 1 second graph Risk_Score_Comparison.jpg [3] http://www.cycla.com/opsiswc/docs/S8/P0068/DIMP_Phase1Report_Final.pdf [4] http://www.aga.org/Committees/gotocommitteepages/gaspiping/
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Home > Operating Conference Roundtable Focuses On Integrity Management

By Bernd J. Selig, Process Performance Improvement Consultants ( (P-PIC), Hartford, CT
The Southern Gas Association (SGA) holds an annual conference at which many subjects are discussed involving gas transmission and distribution operations. Topics are chosen by the participants and, while some short presentations are provided, most of the time is spent in peer-to-peer discussions of specific, present-day issues of concern to pipeline operators. This article summarizes some of the relevant issues discussed at the July 2008 Transmission Integrity Management Program (TIMP) roundtable held in Atlanta. The TIMP sessions were co-chaired by Garry Matocha, Principal Engineer of Spectra Energy and Virgil Wallace, Senior Pipeline Integrity Engineer of Williams. The roundtable began with four presentations providing background on successes and effects on operators of the IMP regulations. The presentations also set the stage for subsequent discussions among operators and service providers. Dave Johnson of Panhandle Energy and chair of the Interstate Natural Gas Association of America (INGAA) Pipeline Safety Committee led off discussing what the industry has learned to date from performing integrity assessments and the PHMSA IMP audits. In high-consequence area (HCAs) - the focus of the regulations - there have been 0.05 immediate repairs per mile and 0.14 scheduled repairs per mile, since inception of the regulations. Immediate response conditions are being conservatively classified. The industry has an effective suite of tools inline inspection (ILI), engineered pressure tests and direct assessment and it has capable service providers to apply them.
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[1]
There remains a need for new technology. Representatives of the industry, service providers and PHMSA are working to establish additional inspection tools such as Guided Wave Ultrasonic Technology (GWUT). The process for using GWUT is advancing successfully and is now embodied in a document referred to as the 18 Points. This is a consensus document developed jointly by PHMSA and INGAA. (http://primis.phmsa.dot.gov/gasimp/docs/GuidedWaveCheckList110107.pdf [2]) Integration of best practices, as well as knowledge advancement and sharing, are effectively taking place. The industry is good at pigging and digging but needs to improve in documentation. While there is no uniform understanding of requirements and enforcement among the PHMSA auditors, the inspection teams expectations appear to be converging. Mark Hereth, a principal at P-PIC, told how IMP has changed what operators do. Operators are formalizing processes and procedures as well as improving documentation of their work. While the regulations and even the supporting consensus standards are largely prescriptive, operators have found multiple paths to solve specific issues. More companies are now making long-term plans to assess their entire systems over 10-15 years It is also becoming clear that operators who successfully apply IMP are finding that they attain a competitive advantage which enables them to obtain special permits for class location changes and operation up to 80% of SMYS. Chris Bullock, senior pipeline integrity engineer with CenterPoint Energy, provided examples of operator experience as what constituted or created a new HCA and why. He also showed how different kinds of corrosion, dents, SCC and weld anomalies have been found as a result of the pipeline assessments. Keith Leewis, a senior fellow with P-PIC, and Dave Johnson, vice president pipeline safety with Panhandle Energy, discussed the status of the following pipeline safety regulations and related consensus standards: NACE SP0169, Control of External Corrosion on Underground or Submerged Metallic Pipeline Systems, and NACE RP0502, Pipeline External Corrosion Direct Assessment Methodology, were both reaffirmed in 2007.
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ASME B31.8, Gas Transmission and Distribution Systems, was modified and reissued in 2007, to include new considerations for dents. ASME B31.8S, Managing System Integrity of Gas Pipelines, is undergoing some modifications including a more comprehensive repair methods table, a modification of the treatment of stress corrosion cracking (SCC) to include near neutral and high ph SCC and a clear definition of failure pressure, Pf. The modified B31.8S should be approved shortly. Roundtable Discussions There were about 15 operating companies on hand to discuss the following topics: How is non-mainline piping being treated when is it part of the IMP? (Blow-offs, crossovers). There was no consensus on approach on whether to consider these lines part of mainline piping or not, and whether they must be included in IMP plans. There has been some internal corrosion found within approximately 100 feet of compressor suction and discharge lines. The non-mainline piping lines are assessed by some operators if they are in an HCA, usually with ultrasonic testing or guided wave technology. It is unclear whether PHMSA approval to use guided wave for other than crossings is required. Direct examination of a length of pipe is always an alternative to the use of ILI, pressure testing or DA. It was suggested that each operator define what is and what is not nonmainline piping, state that clearly in their IMP plans and manage the lines accordingly. Record Keeping Record keeping is labor- and time-intensive. Some software programs make record-keeping/documentation easier. One company uses a Word program for documentation and tracking. One company has an enterprise documentation and tracking system. No one has dedicated personnel for record keeping. It is difficult to determine what must be documented and what does not require documentation.
Direct Assessment Pre-assessment is essential and must be fully applied. Operators are not finding problems with cased crossings; however, access can sometimes be limited by pavement that extends past the casing. Finding a PHMSA no objection path for cased pipe still represents a concern since both DA and ILI sometimes present interpretation difficulties and GWUT even with the 18 points does not always receive a no objection from PHMSA. GWUT is only as good as the operator. Qualification of the operators of the technology is critical and this is reflected in the 18 points. All the participants believe that filling the annulus between the casing and the pipe with a dielectric solution (like wax) was a permanent repair (>25yrs). Operators are finding value in the use of remote monitoring on portions of their system, such as with cathodic protection. Data Integration
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There is a need to determine how to do it effectively with the exponentially increasing amount of data being generated. You should ask yourself what data will be needed in 10 years and then ensure that it is being collected now. Some companies reported having trouble populating databases and getting accurate data from the field. Some use integrated data to grade threats and threat type to determine assessments and prevention and mitigation (P&M) measures. No one has identified P&M measures they dont need. Operators find that CIS (Close Interval Survey) data and other engineering data captured in geographical information systems (GIS) are not necessarily compatible and not easily integrated. It is important to get the GIS and IMP groups together so that data can more readily be integrated and evaluated. One suggested best practice is to GPS all welds and pipe joint numbers as the pipe is installed, record operating temperatures down the pipeline and soil properties observed during construction. Risk Management Is there a value to redoing risk assessments after baselines? They can help establish and re-evaluate P&M measures. Risk assessments also are essential in re-evaluating re-inspection intervals. Participants were unsure if risk ranking had value after the baseline assessments were complete, even though threat assessment remains valuable. Most companies are just using the HCA characteristics and population-driven consequence factor in risk analysis. One company is using cost of life, injuries and other costs for consequence modeling. Continuous Improvement Everyone could use guidance on approaches and processes to effectively add continuous improvement into their IMP. One suggestion was to get the subject matter experts together, evaluate IMP audit results, modify processes and document the process you went through and what changes that prompted. One company is doing this three times per year. INGAA sponsors an IMP metrics program which gathers IMP-specific data on an annual basis (The Impact of the Integrity Management Program on Gas Transmission Pipelines, Summary of Results 2004-2007, INGAA, July 2008). INGAA IMP Metrics team members can use their data to benchmark their performance relative to the group, represented by 120,000 miles of transmission piping, and make improvements to the IMP plan accordingly. The IMP metrics members of 10 pipeline companies have performed more than 400 IMP audits to date. The results of audits can be used to modify the IMP and this is the essence of continuous improvement. Another avenue for continuous improvement is attendance at the SGA roundtables, hearing something new that may apply to your pipeline and adopting that process or technique. There were a number of other issues that were discussed but time and space do not permit presenting them here. Clearly, the participants of these roundtables find them extremely useful and an effective use of their time. The SGA TIMP roundtable Web page describes the session and provides a link to a short De-Brief Web Conference (audio and slides) by the session chair and vice chair. Visit http://www.southerngas.org/EVENTS/OpCon_TIMP_RoundTable.htm [3]
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Author Bernd J. Selig is an associate with Process Performance Improvement Consultants (PPIC). He has more than 40 years of experience in the power, equipment insurance and pipeline industries. He has been a member of ASME, ANS and NACE, was an accreditor of mechanical engineering departments for six years and served as a member of ASME's Board on Research & Technology Development. He has written numerous articles and technical papers during his career. Recently, he was the editor of ASME's B31.8S supplement to B31.8, Integrity Management Programs for Gas Pipelines and B31Q Pipeline Personnel Qualification. Q&A Q&A Features Cathodic Technology Performance Pipe Construction Management Corrosion control monitoring Energy management GIS Pipe protection systems Pipe, internal, inspection Power systems, remote Risk Management Safety equipment Tools Ultrasonic Inspection Weld Inspection
Source URL: http://pipelineandgasjournal.com/operating-conference-roundtable-focuses-integritymanagement Links: [1] http://pipelineandgasjournal.com/sites/pipelineandgasjournal.com/files/SGAoneCo.png [2] http://primis.phmsa.dot.gov/gasimp/docs/GuidedWaveCheckList110107.pdf [3] http://www.southerngas.org/EVENTS/OpCon_TIMP_RoundTable.htm
10/12/2009

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