American Gas - March 2010 - (Page 18)

SAFety FIRSt safety | security | reliability PHMSA Publishes Final DIMP Rule Distribution integrity management programs must be in place by aug. 2, 2011. On Dec. 4, 2009, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued the long-awaited final regulation for distribution integrity management programs (DIMP). by all these stakeholders, the industry now has a regulation that is flexible, reasonable and cost-effective for utilities to implement. With volatile energy prices, a deep recession and the costs associated with transmission integrity management, it was critical for utilities to have a DimP rule that does not impose a large financial burden that would have ultimately been absorbed by utility ratepayers. a Look at the Final rule Here is a high-level overview of the key components of the rule. A DimP plan must include the following elements: 1. Demonstrate knowledge 2. identify threats 3. evaluate and rank risk 4. identify and implement measures 5. measure performance, monitor results and evaluate effectiveness 6. evaluate and improve periodically 7. report results Distribution operators must submit annual reports to PHmsA providing the following performance measures: number of hazardous leaks eliminated/repaired (by cause), number of excavation damages, number of excavation tickets from one-call centers and total number of leaks eliminated/repaired (by cause). Operators must annually report data about each failure of a compression coupling that resulted in a hazardous leak. The rule mandates the installation of excess flow valves on single-family residences, where feasible. An operator is allowed to submit an application to its state regulator for reducing the frequency of a periodic inspection that is required by code. Distribution operators must develop and implement a DimP plan by Aug. 2, 2011. significantly, the rule represents a vast improvement over the notice of Proposed rulemaking issued in June 2008. several proposed items ended up being removed or revised. These include the removal of the Protection Through People concept, the elimination of a plastic pipe failure reporting database and ANDREW LU is AGA director, operations safety.March 2010 mandated by the 2006 Pipeline safety Act, the DimP rule represents a monumental, performance-based regulation that ushers in a new era of risk management for utilities in complying with pipeline safety regulations. in the past, code compliance was based predominately on a uniform set of prescriptive regulations for all distribution operators. DimP requires operators to perform a risk assessment of their own distribution system, and it enables a potential reallocation of company resources that will enhance the safety of the infrastructure and reduce overall system risk. AGA is pleased that PHmsA stayed true to the principles included in the DimP Phase 1 report, published in December 2005. AGA also commends PHmsA for following the various recommendations made by the Technical Advisory committee, which provided guidance on this rule at its meeting in December 2008. The collaborative approach taken by PHmsA in crafting this regulation allowed input from state regulators, public interest groups and, of course, natural gas distribution operators. As a result of efforts exerted AmericAn GAs

Table of Contents for the Digital Edition of American Gas - March 2010

American Gas - March 2010
President’s Message
In the Know
Contents
Industry News
Safety First
To Be the Best
It All Computes
From Volatile to Variable
Vendor News
Advertisers' Index
Places to Be
Marketplace
Jobline
Noteworthies
Facts on Gas

American Gas - March 2010