Pipeline Safety: Communications Plan for Effective Public Communication and Involvement in the Pipeline Safety Risk Management Demonstration Program

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

[Docket No. PS-142; Notice 7]

Pipeline Safety: Communications Plan for Effective Public

Communication and Involvement in the Pipeline Safety Risk Management

Demonstration Program

AGENCY: Office of Pipeline Safety, DOT.

ACTION: Notice.

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SUMMARY: The Research and Special Programs Administration's (RSPA)

Office of Pipeline Safety (OPS) is establishing and implementing a

Pipeline Risk Management Demonstration Program (Demonstration Program)

in which pipeline operators will propose their pipelines as projects

for the Demonstration Program. Effective communication among OPS,

States, pipeline operators, community representatives, and other

interested parties is a key part of this risk management initiative.

Effective means for communication are vital to OPS understanding local

safety and environmental conditions that may affect the demonstration

projects. This document addresses how OPS intends to inform the

community, seek public

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input, and respond to public concerns. This document also describes how

OPS will provide opportunities for meaningful public involvement,

particularly for communities that may be located within a demonstration

project area. Persons interested in receiving information about

specific demonstration projects, or about the Demonstration Program

overall can make their requests by commenting to this notice. OPS also

seeks public comment on this Communications Plan.

DATES: Comments should be received no later than October 10, 1997.

ADDRESSES: Comments should be sent to the Dockets Facility, U.S.

Department of Transportation, Plaza 401, 400 Seventh Street, SW,

Washington, DC 20590-0001. Comments should identify the docket number

(PS-142). Persons should submit the original document and one (1) copy.

Persons wishing to receive confirmation of receipt of their comments

must include a self-addressed stamped postcard. The Dockets Facility is

located on the plaza level of the Nassif Building in Room Number 401,

400 Seventh Street, SW, Washington, DC. The Dockets Facility is open

from 10:00 a.m. to 5:00 p.m., Monday through Friday, except on Federal

holidays when the facility is closed.

FOR FURTHER INFORMATION CONTACT: Eben M. Wyman, (202) 366-0918, or by

e-mail ([email protected]), regarding the subject matter of this

Notice. Contact the Dockets Unit (202) 366-5046, for other material in

the docket.

SUPPLEMENTARY INFORMATION:

I. Background

Today, pipeline companies must comply with regulations that apply

relatively uniformly regardless of conditions that are specific to the

location and the operation of the pipeline. Although pipelines have

maintained a good record of public safety and environmental protection

under the current regulatory structure, government and industry are

continually looking to improve the pipeline safety program.

Pipeline operators and OPS seek to achieve a better understanding

of the risks related to pipelines, where the risks are, and where and

how operators can use resources effectively to reduce risk across the

pipeline system, thereby better protecting both people and the

environment. In addition, operators seek to gain more flexibility to

address system-unique problems. Both government and industry want to

have a greater knowledge and understanding of how to achieve superior

safety and environmental protection, as well as increase reliability of

pipeline service.

Risk management offers government and industry a comprehensive

decision-making process. It includes the identification and analysis of

risks, the identification, analysis and selection of alternative

measures to control risks, and the subsequent evaluation of

performance. It is one means by which an organization systematically

identifies and assigns resources to address safety and environmental

risks, as well as other business risks that affect the organization's

ability to meet its objectives.

The Demonstration Program will give operators the opportunity to

demonstrate that their risk management programs can achieve superior

safety and environmental protection over and above what they have

already achieved through their compliance with existing pipeline safety

regulations. Government and industry will evaluate the benefits of risk

management as a regulatory alternative, and will test whether or not it

should be considered as an ongoing feature of the OPS regulatory

program. In a memorandum issued to the DOT Secretary on October 12,

1996, the President provided policy direction on implementing the

Demonstration Program. Two goals were clarified: (1) That OPS ensure

that superior protection would be achieved through the Demonstration

Program and, (2) that adequate opportunity would be provided for

meaningful public involvement in the overall implementation and

progress of the individual demonstration projects.

To effectively implement the Demonstration Program, OPS needs to

increase public awareness and understanding of the value and importance

of the pipeline network nationwide, provide a broad understanding of

how pipeline companies operate their systems, and allow ample

opportunity to openly discuss the possible impact of these operations

on public safety and the environment.

To prepare to test risk management in individual demonstration

projects, the Joint Risk Management Quality Teams (JRAQT), made up of

Federal and State government, industry, and public representatives,

studied the benefits and limitations of risk management as a regulatory

alternative. The JRAQT investigated approaches that would allow

pipeline operators greater flexibility to take site-specific

considerations into account in addressing both hazardous liquid and

natural gas pipeline safety and environmental protection. One of its

reports, ``Survey of Regulatory Agency Applications of Risk

Management,'' showed that risk management is already widely and

successfully used in other industry and government practices.

The JRAQT designed a structured program so that risk management

could be applied carefully, with results monitored and adjustments made

as needed. The team created five documents to guide implementation of

the Demonstration Program: the Program Framework (62 FR 14719), the

Program Standard, Performance Measures Guidance, a Training Curriculum,

and this Communications Plan. These documents and related information

can be obtained by contacting Eben Wyman at (202) 366-0918.

Program Framework

This document provides information on how pipeline operators can

propose and get approval of risk management projects. The steps in the

Program are described, as well as the program objectives, selection

criteria, and requirements, including how operators must provide for

communication with the public.

Risk Management Program Standard Requirements

The Program Standard calls for both internal and external

communications, that is communications inside the company as well as to

outside stakeholders. It describes the basic elements and

characteristics that should be contained in a company's risk management

program. The Standard describes two sets of key elements: program and

process elements. Program elements address the corporate responsibility

for the structure and procedures to administer, document, communicate,

and evaluate a risk management program. Process elements describe

technical and analytical methods (i.e., the tools, models, and type of

analyses) used to identify possible ways to control risks, allocate

resources to control risks, monitor each project's performance, and

apply information learned to improve the process.

A variety of steps are involved in identifying and reducing risks

on a pipeline system. First, a company conducts a risk assessment,

develops a risk profile of current pipeline conditions, and identifies

possible adverse events that could occur. The likelihood and severity

of these possible events are also evaluated. Second, the company

examines the options for controlling the risks identified in the risk

assessment and decides which

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actions it can take to control the risks. Third, the company

establishes performance measures to track the progress of the risk

control activities and to evaluate if the intended effect of these

actions is being achieved.

The Program Standard provides operators the flexibility needed to

develop a risk management plan appropriate to the nature and extent of

the risks being addressed in a demonstration project. Because risk

management is a continuous improvement process, as new data becomes

available, the operator can make adjustments accordingly.

II. Purpose and Objectives of Communications Plan

This Communications Plan (Plan) describes how OPS and industry will

communicate with those who may be affected by, or interested in, a

demonstration project. The Plan's purpose is to help communities and

the public understand the Demonstration Program's goals, processes,

safety issues, safety actions and anticipated outcomes within each of

the demonstration projects. This communication will be successful if

OPS provides access to information, receives feedback, interacts and

responds to national, state, and community issues.

Both OPS and operators will work in partnership to provide

information to all who may be affected by a demonstration project so

they may understand and evaluate the potential benefits and liabilities

of risk management. The success of the Demonstration Program depends on

the ability to demonstrate, and therefore communicate, three goals: (1)

Risk management can result in superior safety, environmental

protection, and service reliability than could be achieved through sole

compliance with current pipeline safety regulations; (2) resources will

be better prioritized and more effectively applied under risk

management; and (3) government and industry's discussion of risks and

risk control options, and both their ability to impact desired

outcomes, will increase under risk management.

OPS is building a two-way communication system designed to collect

and distribute information to and from all parties that may be affected

by a demonstration project through numerous direct mail and electronic

means, as well as through direct contact. The goal is to enhance

communication among OPS and national organizations and agencies, State

and community representatives. Additionally, pipeline operators who

apply to participate in the Demonstration Program must describe in

their application how they too will communicate with communities

affected by their projects.

Specific benefits of public involvement in the Demonstration

Program for OPS, industry, State and community representatives include:

Exchange of information about specific and relevant local

factors during the decision-making process that may not be known at the

Federal or State level; and

Feedback regarding the success of the Demonstration

Program in accomplishing the goals for which it was designed.

During the demonstration period, OPS will:

Inform and educate about risk management;

Provide project information and methods to provide input

or feedback;

Interact in a timely manner, and

Respond and report back to all stakeholders.

To guide national and local communication initiatives, OPS expanded

the communications workgroup within the JRAQT to involve other

government agencies, public interest groups, environmental groups,

industry and community representatives. The workgroup currently

includes:

National League of Cities

National Association of Towns and Townships

National Fire Protection Association

International Association of Fire Chiefs

Fairfax Virginia Fire Department

Environmental Defense Fund

Port of Houston Authority

International City/County Management Association

Gas Research Institute

Local Emergency Planning Committees

Interstate Natural Gas Association of America

American Petroleum Institute

Shell Oil Products Company

Northwest Pipeline Company

New Hampshire Public Utilities Commission

Arizona Corporation Commission

National Transportation Safety Board

Federal Emergency Management Agency

For further information about participation in the communications

workgroup, contact Eben M. Wyman on (202) 366-0918.

National Communications

1. By working through national organizations and agencies on the

national level, OPS will continue to provide information about the

Demonstration Program to other Federal agencies and to national public

interest and environmental organizations that maintain outreach

programs to community representatives. Our primary means to reach

federal agencies is through the National Response Teams (NRT).

Comprised of fifteen Federal agencies, the NRT representatives have

agreed to identify any issues of concern they may have regarding

potential demonstration sites. These agencies include the Environmental

Protection Agency, Federal Emergency Management Agency, General

Services Administration, Nuclear Regulatory Commission, and the

Departments of Agriculture, Commerce, Defense, Energy, Health and Human

Services, Interior, Justice, Labor, State, Transportation, and

Treasury. OPS will provide designated NRT regional officials with both

national and project-specific information throughout the project

review, approval, and monitoring process so they can identify issues of

concern and provide feedback on individual demonstration projects in

their regions.

2. Federal Register Notices: Opportunities for public comment will

be provided following the publication of Federal Register notices

during various stages of the Demonstration Program: (1) OPS will

publish a notice describing the risk management proposals selected for

consideration and consultation. This notice will describe the

candidate's ``Letter of Intent'' (The number of proposals described in

each notice will depend on the number submitted and screened for

consultation at the time of publication.); (2) OPS will publish a

follow-up notice once the consultation is underway to provide updated

project information and to describe OPS outreach activities; and (3)

another will be published announcing the final approval of the

demonstration projects. These notices will include information

describing the demonstration project, how the operator approaches

external communication, and a list of contacts from whom to obtain

additional information. Additionally, OPS will provide a prospectus to

national, state, and community representatives that describes

information specific to each demonstration project.

3. Internet Information System: PRIMIS--As part of its national

communications efforts, OPS is also making information about pipeline

risk management available via the Internet on the OPS Home Page (HTTP:/

/ops.dot.gov/riskmgmt.htm). Internet access will provide additional

means to locate information, as well as to solicit public comment. The

OPS Home Page

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will be used to disseminate information and to provide the public a

central point of access to technical assistance.

OPS is creating a new data system, accessible to all interested

parties through the Internet, to collect and exchange project

information. It is called the Pipeline Risk Management Information

System (PRIMIS). This data system will help OPS perform project

consultation, approval and audit functions during the Demonstration

Program, and will help facilitate communication of the resulting

information. PRIMIS will serve as a repository of information on the

Risk Management Program as a whole and will provide details concerning

each of the demonstration projects. It is a place where interested

parties can provide information, comments or questions for OPS.

Each of the incoming letters of intent, as well as other

significant documentation, will be entered and retained in the PRIMIS

system. PRIMIS will include a company profile developed by OPS,

specific information on the company's demonstration project, including

the risk control alternatives proposed in the Letter of Intent, and

follow-up information through the screening, consultation, and

implementation phases. The system will also be used to track

significant meetings, program milestones, events, commitments, and

follow-up dates during the consultation process. PRIMIS will be

accessible via the OPS Home Page in September, 1997.

4. Electronic ``town meetings'': To provide further access to

information on the Demonstration Program, OPS aired an electronic town

meeting to discuss the risk management program and candidate projects.

Based on feedback received from this effort, OPS is considering using

this method as a regular feature of future communication efforts. This

two-way live broadcast was aired on June 5, 1997, through the Federal

Emergency Management Agency's Emergency Education Network (EENET). Use

of EENET was intended to involve thousands of public safety and

emergency management officials. During the live broadcast, viewers had

an opportunity to pose questions and voice concerns to OPS, State,

industry and community representatives. OPS is seeking ways to expand

the audience to include local safety and environmental protection

officials as well as other community representatives. The town meeting

broadcast was also available via new Internet technology, which

provided the information via linkage to personal computers. Videotapes

of this broadcast will be available to loan to interested parties from

their State pipeline safety office, or from OPS Headquarters.

Individuals can request to borrow a copy of the videotape via the OPS

Home page (http://ops.dot.gov), or by contacting OPS by e-mail

([email protected]). State emergency managements agencies will

also have a copy.

5. Identifying other resources: The communications workgroup

mentioned earlier will assist in identifying information that meets the

needs of local communities and methods to distribute information. Use

of the Internet, electronic ``town meetings'' and regional briefings to

provide project status reports are examples of methods to communicate

risk management activities on a national basis. We will identify other

resources during the course of the Demonstration Program.

Local Communications

Both OPS and participating operators are responsible for local

level communications focused on communities within a demonstration

project site area. In its proposal, an operator is required to describe

to OPS its external communication methods as defined in the Program

Standard, including the types of information to be communicated and the

audiences to receive that information. Companies will also describe the

methods of communication, individuals or organizations responsible for

providing information, and methods of receiving feedback from these

audiences.

The operator will initiate communications at the start of the

project to inform community representatives about key issues, progress

and to solicit feedback. Operators will build on existing public

education and outreach programs. The operator will describe to OPS how

it plans to address public interests and concerns, and how it will

communicate to community representatives with varied interests such as

local officials, environmental organization representatives, and fire,

rescue, safety and health organization representatives. These

representatives could include members of organized groups that have a

continuing interest in pipeline safety issues, or citizens with an

interest in the projects who come forward with questions or

suggestions.

OPS will work with operators to help identify interested parties

and to answer questions from State officials and community

representatives. OPS will also help operators gather relevant

information regarding local, site-specific issues in locations of their

demonstration projects. OPS and operators will provide information to

effectively address issues of concern. Many channels of communication,

including local media sources in various demonstration project areas,

will be pursued as a means of communication. OPS seeks names of media

contacts interested in following demonstration projects.

As stated earlier, OPS will provide a prospectus on each of the

demonstration projects being considered to State officials and

community representatives that may be interested in reviewing project

information, providing input, or monitoring the progress of the

project. Each prospectus will contain basic information about the

company and its proposed demonstration project, describe the operator's

approach to communication with States and community representatives,

and identify individuals who can be contacted for information,

questions or comments. These contacts will be OPS, company, and State

pipeline agency representatives (if the State agrees to participate).

OPS will provide additional information on project objectives, risk

management alternatives, and performance measures and progress

throughout the demonstration period.

III. Commonly Asked Questions

The following are two commonly asked questions regarding the

Demonstration Program. OPS will continue to address these and other

questions received from interested parties using the communication

techniques described above.

A. What Are the Expected Benefits of the Risk Management Demonstration

Program?

1. Risk Management Should Help OPS Better Protect the Public and the

Environment

While the traditional approach to safety is effective in

determining if prescribed safety requirements are carried out, it does

not require a structured process to identify risks or to validate the

solutions being implemented. Risk management is intended to provide a

more complete understanding of risks and to provide methods and models

to produce the most appropriate and cost effective measures to reduce

risk.

2. Risk Management Is Designed To Yield Improved Information for Policy

and Decision-Making

Since risk management is predicated on identifying and

understanding potential threats to a pipeline system,

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the risk management approach to safety is likely to generate improved

data to enhance decision-making by both operators and regulators. Both

government and industry should learn more from available data about a

wide range of risks and system configurations to help determine the

most effective methods to measure performance and monitor risk

activities.

3. Risk Management Will Allow Pipeline Safety Programs To Be Tailored

to Local Conditions

Risk management will permit pipeline operators and OPS to focus

greater attention on those pipeline systems, or segments of those

systems, where there is an opportunity to reduce risk and achieve

superior safety, environmental protection and service reliability. The

goal is to design risk management programs that best address pipeline-

specific conditions.

4. Risk Management Should Provide Increased Operator Flexibility To

Achieve Superior Safety

Through risk management, operators plan to use expert knowledge and

experience to tailor company safety plans to unique system conditions,

providing them with the flexibility to select the best methods to

address risks.

5. The Risk Management Demonstration Program Will Be Built Through

Partnerships

A partnership was formed among OPS, the pipeline industry, and

State and community representatives to examine risk management

principles and to evaluate if they should be tested as an alternative

approach to pipeline regulation. This partnership is expected to

continue to improve information exchange between all parties

participating in the Demonstration Program.

B. How Will the Demonstration Program Work?

1. OPS Will Oversee the Risk Management Demonstration Program Process

OPS will carefully assess each proposed demonstration project to

determine whether superior safety and environmental protection can be

achieved. Before OPS issues an order approving a demonstration project,

a Project Review Team (PRT), made up of OPS representatives (assisted

by voluntary State support), will meet with the candidate to clarify

all relevant aspects of the project. To accomplish this, OPS will seek

input from other Federal agencies, affected states and other safety and

environmental officials on their issues and concerns, including their

knowledge of candidate companies' safety and environmental compliance

records.

The selection process will involve a comprehensive review of the

candidate's pipeline system and consultation with the candidate. There

are two important operator submissions.

The first submission is the Letter of Intent. This initial letter

is an expression of an operator's interest in participating in the

Demonstration Program. It describes a specific demonstration project

the operator would like OPS to consider for inclusion in the

Demonstration Program. Following the receipt of the Letter of Intent,

OPS will contact the company to set up a series of consultation

meetings. The second submission is the Formal Application and Work

Plan, which the operator will prepare after discussions with the PRT

have resulted in a mutually acceptable demonstration project. This

submission formally documents the terms and conditions of the project

and is the basis upon which OPS will approve or reject the operator's

project.

Adjustments may be necessary to specific areas of the project

before it starts. Such adjustments will take into account community

concerns. Other adjustments or modifications may also occur during the

course of the project, and may come from periodic reviews by the PRT.

2. Basic Regulatory Roles and Responsibilities Will Not Change Under

Risk Management

The Federal government's fundamental responsibilities and authority

will remain the same. OPS will continue to set standards for, and

independently assess, pipeline safety and integrity. Oversight will be

improved as government agencies focus on better understanding how

individual pipelines are operated, how risk-based decisions are made,

what effective alternatives exist for reducing risk, and whether the

intended results are being achieved.

3. Clear and Ambitious Performance Goals Will Be Set

OPS has worked with representatives of State pipeline safety

agencies and industry to develop guidance on performance measures that

will be used to evaluate the results of the demonstration projects.

Many of the performance measures will be designed to evaluate at the

national program level whether superior safety and environmental

protection are achieved through this alternative approach to government

oversight.

In addition, performance measures will be designed for government

and industry to monitor the achievement of desired safety,

environmental and service reliability results at the individual project

level. OPS and operators should be able to demonstrate improved

accountability to the community as a result of these measures.

4. The Demonstration Program Welcomes Public Input

Improving public involvement has been a Program goal from the

beginning. Government and industry sought public input through the

November 1995, the May 1996, and the January 1997 risk management

public meetings. The public's views have also been sought through the

OPS Home Page on the Internet (HTTP://ops.dot.gov), presentations to

groups representing emergency responders and State and community

representatives, and through newsletters and Federal Register notices.

The previously described Communications Plan has been designed to

continue and enhance the public's involvement.

5. Opportunities to Address Public Concerns

The demonstration project review, consultation, approval, and

communication process is designed to give appropriate opportunities to

raise concerns and to seek information about particular demonstration

projects. Participating companies will facilitate this process by

coordinating with Federal, State and local authorities to provide

methods of information sharing to community representatives.

6. Safeguards Will Be Maintained

The OPS regulatory program that has been in place for 25 years will

continue to be the means of oversight of all pipelines not

participating in the Demonstration Program. Pipelines participating in

demonstration projects will also continue to be safeguarded. OPS and

State pipeline agencies will maintain regulatory oversight activities

on all existing pipelines involved inside and outside the Demonstration

Program.

7. The Focus Will Be on Those Who Can Succeed

The previously described Program Standard and Framework processes

are designed to provide many checks and balances in the selection

process. The process is intended to identify companies that will comply

with the Program Standard, achieve superior

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safety and environmental protection through risk management, work in

partnership with OPS to evaluate the merits of risk management, and

show a corporate commitment to use the risk management process as a

day-to-day part of their business practices. The selection criteria for

the Demonstration Program favors those proposals that are the most

comprehensive. The company must also have a clear and established

record of compliance in the existing program in order to be considered

for participation.

8. Enforceable Agreements and Incentives To Perform

Just as the traditional regulatory system provides a clear process

to monitor performance, so must the risk management alternative. Once

OPS approves a Formal Application and Work Plan, an order will be

issued and notice made to the public through the Federal Register. The

order will specify the pipeline safety regulatory requirements for the

period of the demonstration, and set forth the terms and conditions for

the operator's participation in the project.

OPS will have an audit plan to monitor how well the operator is

meeting the performance goals. OPS's full statutory authority to

inspect pipeline facilities remains in effect.

Should any unsafe conditions arise, OPS will work with

participating companies to see that such conditions are quickly

remedied.

OPS invites comments on ways we can make the communications program

more meaningful.

Issued in Washington, DC, on August 5, 1997.

Richard B. Felder,

Associate Administrator for Pipeline Safety.

[FR Doc. 97-21117 Filed 8-8-97; 8:45 am]

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