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HomeMy WebLinkAboutINS-19-006 - Safety and Loss Management Standard & Gas Distribution System Integrity Management ProgramREPORT TO:Community & Infrastructure ServicesCommittee DATE OF MEETING:May 13, 2019 SUBMITTED BY:Greg St. Louis, P. Eng., Director, Utilities 519-741-2600X4538 PREPARED BY:LesJones, P. Eng., Utilities GasEngineer 519-741-2600X4826 WARD (S) INVOLVED:All DATE OF REPORT:March 18, 2019 REPORT NO.:INS-19-006 SUBJECT:Safety and Loss Management System and Gas Distribution System Integrity Management Program RECOMMENDATION: THAT the Kitchener Utilities Natural Gas Distribution Policy be approved and that the Gas DistributionSystem Integrity Management Programoutline,be presented for informationin accordance with the Technical Standards and Safety Act, 2000 and Regulation 210/01: Oil and Gas Pipeline Systems. BACKGROUND: In June2013,report INS-13-053was brought to Council as an introduction of the Gas Distribution System Integrity Management Program (DSIMP), Kitchener Utilities version of the required System Integrity Management Program. The Technical Standards and Safety Authority (TSSA) has now incorporatedthe DSIMP into a broader requirement of a Safety and Loss Management System and require operating companies to adopt the elements of the system, as outlined in theCanadian Standards Association (CSA) Standard Z662-15. The standard defines the twoprograms as: Safety and loss management system-a systematic, comprehensive, and proactive process for the management of safety and loss control associated with design,construction, operation, and maintenance activities. Integrity management program -a documented program that specifies the practices used by the operating company to ensure the safe, environmentally responsible, and reliable service of a pipeline system CSA Z662-15, thegoverning standard requires that natural gas distributionoperating companies develop a Safety and Loss Management System designed to ensure the protection of people, the environment, and property.The Safety and Loss Management Systemshall include,among other operational controls, agas Distribution System Integrity Management Program (DSIMP) and a Security Management Program (SMP) to coverthe fulllife cycle of the pipeline system. Once in place,continuous maintenance and supportof all programs is required. 8 - 1 Furthermore, there is a requirement for aclear policy and commitment from the leadership for the development of the Safety and Loss Management System.The policy is attached to this report for Council approval, along with acommitment to generate an organizational structure with well-defined responsibilities and authorities to implementthe Safety andLoss Management System. REPORT: The hierarchy sequence of documentswithin the safety and loss management system, including theDSIMP,is establishment of the Policy and Operational Plan. Beneath the Operational plan are 273 associated standard operating procedures, work instructions, drawings, forms and documents. These documents are the basis for staff training and competency assessment reviews. In addition, continuous improvement activities are identified during the annual risk management workshops, internal audits or infrastructure reviews. The policy statement provided outlines the principles as: Safety and Security: Safety is paramount for the protection of Kitchener Utilities staff, contractors working around natural gas infrastructure, the public, the environment, andthe community of Kitchener.Kitchener Utilities is committedto thecontinuous improvement of a Safety and Loss Management System for the distribution of natural gas. As outlined in the Kitchener Utilities DSIMP, safety measures are considered during all the design, constructionand maintenancelife cycle phases of thedistribution system. There is a constant review of construction activities looking to continuously improve processes, procuring safer equipment, better devices and longer lasting materials. Kitchener Utilities usesrisk-based management processes, within the Safety and Loss mandated Security Management Program,to identify and examine potential security risks on a continuous basis and mitigatethese risks byincorporating appropriatesecurity measures. Kitchener Utilities is committed to operating and delivering safe natural gas service. Reliability:Ut-Do-Check-cyclicapproach within numerous gas maintenance programs to facilitate the on-going stability of the gas distribution system. As an ,programs such as the cathodic protection survey and the annual gas leak surveys examinethe on-going health of the system. The findingsfrom these programs,and other programs such as valve replacement and large meter set maintenance, system. If the infrastructure is at the end of its useful life the gas main and service replacement programs re-starts-ions of designing and replacingthe necessary component of thedistribution system. Throughout this cycle, Kitchener Utilities is committed to comply with applicable legislationand an assessment of opportunities for improvement of the safety and loss management systemto ensure a reliable supply of natural gas. 8 - 2 Kitchener Utilities is committed to delivering reliable natural gas service. Sustainability:Kitchener Utilities recognizes that energy efficient natural gas appliancesare constantly beingintroducedinto the market place. Kitchener Utilities energy conservation programs incentivise customers whoupgrade to greaterenergy efficientequipment. These efforts help to conserve natural gas, reduce green house gasemissions as well asthe additionalbenefit ofmaintainingor reducing peak-hour system pressures as the customer base grows.This provides anefficient and cost effectiveapproach to accommodate for customer growth. Value:Natural gas has long been viewed as a low cost energy choice. Kitchener Utilities endeavours tomake cost conscious decisions on procurement of materials, equipment and services tokeep the cost of operating the distribution system as low as possible. Furthermore, Kitchener Utilities reviewsnew and innovative costeffective processes in order to maintain the market place advantage as a valued energy source for the community. Communication:Through the efforts of the marketing team, Kitchener Utilities provides messaging on numerous safety initiatives,on multiplemedia platforms, to educate the public on the safe use of natural gas. Furthermore, Kitchener Utilities commits to communicate certain elements of the Safety and Loss Management System to staff within Kitchener Utilities, Council and senior management. Kitchener Utilities Gas Distribution Operational Plan documents the requirements of the Safety and Lossand the DSIMPoutlines how the requirements for both aforementioned programswill beachieved. The Operational Plan is a living document and efforts shall be made to continually improve the effectiveness of the Safety and Loss, and DSIMP.The Operational Plan and its associated procedures include requirements related to elements covered in the Safety and Loss program. These include: Organizational structure, roles, responsibilities, and authorities Competency and training: Training staff on gas related work processes, and assessing their competency in completing these tasks. This also includesproviding periodic refresher training. Document and record control:Processes and approval of documents created such as DSIMP documents and work instructions. This also includes the creation and processing of records, such as maintenance checklists. Operational controls: These are the defined programs associated with the safety and losssuch as risk management, integrity management and security management programs.These programs help define and focus aspects of operating the distribution system, such as maintenance and security efforts. Change management: The procedure to manage changes that can affect the integrity of the gas distribution system Continual improvement: These processes are completed on a defined annual schedule with the intention of reviewing the effectiveness of the program: 8 - 3 o Safety, hazard, and riskmanagement o Internal audits o Development and assessment of objectives and performance indicators o Annual management review o Integrity management of pipeline lifecycle including infrastructure review The DSIMP outlines the functions relatedtothe life cycle of the pipeline distribution system. The following are some of the elements covered in the DSIMP: Design and construction; Maintenance and repair; Hazard, failure, damage incidents; Damage and deterioration; Manufacturing imperfections; Environmental protection; and Safety. Outlined below are the elements that Kitchener Utilities staff have completed, tasks that are on going and tasks that are to be completed. In 2019,the intention is to role out the program to staff and incorporate the policies and procedures of the DSIMP and Safety and Loss Management System into the day to day operation of the gas distribution system. The current action elementsfor Safety and Loss, and DSIMP are: Completed to dateOn goingTo be completed Risk AssessmentInternal Audits Operational Plan Operational Plan Updates Documents Majority of Work InstructionsWork Instructions UpdatesOutstandingWork Instructions Training MaterialsTraining Materials Updates Initiated Competency Competency Assessment Remainder of Competency Assessments UpdatesAssessments Maintenance of the Security Development ofthe maintenance Management Programrequirements of the Security Management Program Annual Management ReviewTraining videos development and maintenance Learning Management Software purchase and development 8 - 4 Collecting and Analysing Performance Indicators As illustrated above, there is a significant amount of work that is required to further developthe DSIMP and Safety and Loss programsas well as the ongoing maintenance and auditing of the plans.A temporary staff resource was hired to allow for the development of the DSIMP and consideration for long-term resourcing is being evaluated through theUtility Review, whichis currently underway. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: through the delivery of core service. FINANCIAL IMPLICATIONS: The development and ongoing work associated with the Safety and Loss Management System and DSIMP represents a significant amount of time and resources.The ongoing costs will need to be reviewedthrough the annual Financial Planning process. COMMUNITY ENGAGEMENT: INFORM A DSIMP Policy related to Integrity, Safety and Communication is included in the Operational Plan and will be communicated internally and to the public via the Kitchener Utilities website. ACKNOWLEDGED BY: Denise McGoldrick, General Manager, Infrastructure Services. 8 - 5