Damage Prevention Program - Pennsylvania Public Utility Commission

Damage Prevention ProgramOctober 8, 2008Ken Lyle, Operations Manager, Damage PreventionJack Mackin, Operations Manager

www.eqt.com2

www.eqt.comAgenda Introduction – Equitable Gas Performance Improvement Success Factors Company Commitment Ticket Handling Processes Effective Procedures Operator Qualification/QA Program Investigating/Reporting Root Cause/Statistics Outreach Question & Answer3

www.eqt.comIntroduction – Equitable GasEquitable Resources, Inc. (NYSE:EQT, Enterprisevalue: 7 Billion as of Oct ‘08) is a fully integrated energycompany focusing on Appalachian natural gas operations. Thecompany is organized into three major operating units: Equitable Production develops, produces and sells naturalgas and related products in the Appalachian region of the UnitedStates. Equitable is the largest operator in the AppalachianBasin, controlling 3.3 million acres of gas-rich land, and provenreserves of more than 2.5 trillion cubic feet of natural gas. Equitable Midstream provides natural gas gatheringservices, storage capacity, processing of natural gas liquids,transmission pipeline services and various risk managementactivities. Midstream deals in both regulated and non-regulatedoperations. EquitableGas distributes natural gas to homes,businesses and industrial organizations in southwesternPennsylvania and north central West Virginia. Its activities areregulated by the Public Utility Commissions in both states. Operate 4,100 miles of pipeline Deliver 50 Bcf per year. Pressures normally range from ½ psig to 60 psig Pipe Sizes range from 1” to 36”4

www.eqt.comPerformance Improvement2007 to 2008 Ticket Volume Increased 16% Hits Per 1000 Tickets Received Decreased by 23% Hits Per 1000 Tickets Marked Decreased by 21%5

www.eqt.comSuccess Factors Company Commitment Ticket Handling Processes Effective Procedures Operator Qualification/QA Program Investigating/Reporting Root Cause/Statistics Outreach6

www.eqt.comCompany CommitmentIncreased Damage Prevention resources 43% from 2006 to2008 Weekly Reports – Reviewed from CEO to field personnel.Active Involvement - Western PA Damage Prevention Com., AGA, PA 1-Call, CGAMonitor Damages/Investigations/Reporting *Make Adjustments*Outside Education/TrainingOperations Supervisors : 100% Dedicated to Damage Prevention Field Investigate 100% of Damages.Complete Root Cause AnalysisContractor Quality Assurance in the field / Site InspectionsReporting – gathering accurate data from damagesLocators 7Dedicated 100% to locating (full attention to locating vs. multi –task position)Field Investigate 100% of DamagesIn house Quality Assurance in the field

www.eqt.comEGC Ticket Handling ProcessesExcavator Calls Excavation Notification intoPA One CallExcavator receives all Karl responses fromnotified utilitiesCommentsNo Ticket SentPA One CallNoTicket conflictsWith bufferMember Mapping (Phoenix)uses EGC’s uploadedmaps to screen the ticketKARL Response is received andSent to excavatorEGC updates PhoenixMapping to capture lineextensions ble8Translore convertsticket to work orderTicket is in vicinityOf TransmissionLineLocator completes ticket according to EGC Locating andMarking Procedures and enters Karl Response onthe Work Order along with comments regarding the ticketNo ActionNoTicket CompletionData is stored andKARL response isSentYesCopy of Ticket toEGC Corrosion Dept.To MonitorEGC Damage Prevention Group monitorsTranslore to verify ticket completion andcorrect documentationTranslore is a 3rd Party ticketmanagement company thatprocesses tickets and storescompletion data.The Locate contractordispatches and Managesthe work load for all locators.EGC holds its own TransloreLicense to provide completeVisibility into the ticketmanagement process.

www.eqt.comRoot Cause Statistics (Internal)FAILED TO USE PRUDENT EXCAVATION12%WORKING WITHOUT VALID PA ONE CALLFAILED TO PROTECT EXPOSEDFACILITIESFAILED TO EXPOSE PRIOR TO CROSSING22%FAILED TO MAINTAIN MARKSOTHER66%INDIRECT LOCATE - UNABLE TO VERIFY S/L M/L RECORDS IN ERRORLOCATOR ERROR9

www.eqt.comEffective 14'C14TESLPMA73IENFLORST/L/L/L'C'C/L'C8888'CON 'C/L/L/L/LE G N8888'C'C'COR RI EC/ L FLO1 2' 'C/ L5310ST Monitoring/ObservingSORBATLC////LLL''' CC1111333EmergencyComplex ProjectsDemolition TicketsY WAFacility informationUtilize Equipment and MaterialsFacility LocatingCompleting Locate Follow UpsResponding to TicketsYWAYONN IA WAEGDOLocating and Monitoring Facilities/L/LC/LC/LC44'''' C44BYBIX121212/L/L'C/L'C1212'C12RIENFLOST

www.eqt.comOperator Qualification and Quality Assurance Equitable Locator Requirements Contractor Quality Assurance Final Inspection QA/Job Site Visit11

www.eqt.comInvestigating/Reporting Gather Factual Data Quickly Complete 100% of Investigations Investigate JointlyDocumentation Notification & ResponseHit KitRoot Cause Analysis Field12Adjustments/Mapping Corrections

www.eqt.comRoot Cause Statistics (External)FAILED TO USE PRUDENT EXCAVATIONWORKING WITHOUT VALID PA ONE CALL34%FAILED TO PROTECT EXPOSED FACILITIES38%FAILED TO EXPOSE PRIOR TO CROSSINGFAILED TO MAINTAIN MARKSOTHER2%4%13INDIRECT LOCATE - UNABLE TO VERIFY - S/L M/LRECORDS IN ERROR8%14%LOCATOR ERROR

www.eqt.comOutreach Identify Top 10 offenders “Bad Actors” Water CompanyCommunicationsPavingSewer ContractorDOT Excavator Training and Educational Meetings Public Awareness14

www.eqt.comQ&A15

www.eqt.comRalph Graeser needs to place a PA One Call Before heTees Off16

EGC Ticket Handling Processes PA One Call Translore Locate Contractor Equitable Member Mapping (Phoenix) uses EGC's uploaded maps to screen the ticket Translore is a 3rd Party ticket management company that processes tickets and stores completion data. EGC holds its own Translore License to provide complete Visibility into the ticket .