The Participation of Private Venezuelan Companies in the Opening of the Natural Gas Sector

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Gas Processors Association
GPA Incident Survey For Onshore Gas Gathering
LinesFive Year History
For Additional Information Contact Johnny
DreyerGPA Director of Industry
Affairsjdreyer_at_gasprocessors.comph
918.493.3872fax [phone]www.gasprocessors.co
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GPA Background

• Industry Trade Association Since 1921 for Gas
  Processors and Gas Gatherers
• 100 Corporate Members
• 67 produce liquids
• 50-55 have onshore gathering lines (est.)
• Our Members Dont Just Process, We Also
• Produce Oil Gas
• Gather Gas
• Transport Gas
• Market Gas
• Market Gas Liquids

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Survey Goals and Content

• Learn more about miles and associated incidents
  of gathering operated by GPA members
• Results would be aggregated
• Onshore Gas Gathering Lines Only
• Records Search and Operator Interviews
• Five year History of Incidents that Impact the
  Public
• Causes
• Consequences

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Survey Goals and Content

• Causes
• Corrosion
• Third Party Excavation Damage
• Operator Excavation Damage
• Natural Forces, Other Outside Force Damage,
  Unknown, Other
• Consequences
• Deaths or Injuries
• Excavations
• Minor Property Damage (5,000 - 25,000)
• Major Property Damage over (25,000)

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Miles of Non-Jurisdictional Gathering

• 40 Responses Submitted
• 38 GPA members
• 2 non-members

171,628 miles or 95.8 Included
7,593 (est.) or 4.2 Not Included
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Incidents by Year
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Incident Causes
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Consequences
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Observations

• Causes
• Main causes of limited incidents in order were
  corrosion and 3rd party excavation
• No other causes had more than two occurrences
• Consequences
• Leading consequences in order were evacuations,
  minor property damage, major property damage
• Three injuries and one death reported
• Cause vs. Consequences
• 3rd Party excavation resulted in more severe
  incidentsthey involved the death and 2 (of the
  3) injuries
• Corrosion incidents generally resulted in much
  less severe consequences, such as evacuations and
  property damage

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Comparing Incidents

• Transmission incident involves the release of
  gas from a pipeline system and 
• Death or an injury requiring in-patient
  hospitalization, or
• Estimated property damage of 50,000 or more
• Note Onshore only numbers used
• Gathering Incident is an unintentional release
  of gas due to the failure of a pipeline that
  impacts one or more members of the general
  public through
• Death, injury, evacuation, or
• Damage in excess of 5,000 to property
• Note General Public means members of the
  community, not including your own company
  personnel or contractors controlled by your
  company

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Incidents per 1000 miles
Transmission
Gas gathering
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Conclusions

• Historical Rates for Incidents Impacting the
  Public Were 3 to 6 times lower for Gathering When
  Compared to Transmission even though the
  reporting criteria for Transmission lines is
  significantly higher (50,000 vs. 5,000)
• Corrosion and 3rd Party Incidents are
  historically the Primary Causes for Gas
  Gathering Incidents

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Why is the gas gathering incident rate for
impacting the public so low?

• Possible answers
• We generally operate in areas that are sparsely
  populated (or not populated)
• Our product (gas) and operating parameters (low
  pressure, smaller pipe sizes) help minimize the
  public impact
• Good management of our gathering lines it is in
  our best interest to operate safely

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Survey Says

• The survey verifies that.
• Comparatively we operate with a lower risk to the
  public
• Corrosion and 3rd party excavation are our
  greatest opportunities as we strive to minimize
  public risk even more

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