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.
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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.
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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:
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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
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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.
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