Separating Pipeline Integrity Management’s Wheat from Its Chaff

Natural gas and hazardous liquids pipeline operators have been accumulating mass volumes of data for
several years. But what to do with all this data? This is a question many natural gas pipeline operators
are asking in advance of the highly anticipated Pipeline and Hazardous Materials Safety Administration’s
(PHMSA) proposed gas and gathering pipeline mega-rule. For hazardous liquids pipeline operator
pending rules are also driving the need for more robust data. Placing a greater emphasis on data and
risk is where our industry is moving, so an effective process to manage this data is becoming an industry
necessity.
BACKGROUND
Expected in phases—beginning later this year—the “Safety of Gas Transmission and Gathering
Pipelines” PHMSA-1011-0023 ruling has been an 8-year odyssey, with an anticipated end result of
sweeping revisions to the existing 49 CFR Part 192 regulations nearly twice the length of the original
regulations. Within these regulations will be items relating to natural gas pipeline integrity management,
pipeline assessments, and more. A less robust, but also pending rule, is expected for hazardous liquids
pipeline operators. A common denominator in much of these regulations will be the application of actual
data for a myriad of purposes including more effective risk modeling. As operators incorporate the newly
required data into their systems they can benefit from better decision making across the board. Data
integration will drive more informed risk analysis, which can ultimately lead to safer and more efficient
systems.
For decades, industries have been using data to drive business decisions. Oil companies rely on data
to determine exploration efficiencies and calculate how effectively they can produce a barrel of oil. The
Centers for Disease Control look at spikes in on-line searches to predict regional outbreaks for things
like the flu. Retailers analyze zip codes to determine future brick-and-mortal locations. Leveraging data
can be just as effective for pipeline operators—once the data has been 1) identified, 2) prioritized, and 3)
analyzed.
MILES AND MILES OF DATA
We work in an industry that measures assets in miles. For operators who have grown through mergers
and acquisitions it can seem as though they have miles and miles of data as well. Many operators find
themselves the beneficiaries of inherited data, created in varying degrees of complexity, and cobbled
together in multiple data management systems. Most of the data lacks cohesiveness, which can hinder
Separating Pipeline Integrity
Management’s Wheat from Its Chaff
By Ellie Souder Lynch,
Manager-GIS & Data Analytics,
ENTRUST Solutions Group
As published in
PIPELINE & GAS JOURNAL October 2019
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Separating Pipeline Integrity
Management’s Wheat from Its Chaff
an operator from leveraging the data. Lack of a strategic plan to prioritize and apply the relevant data can
be more of a hindrance. While we await pending rules, there are things operators can do now to shore up
their data. Operators must start with an overarching data system and a data management plan.
CREATING A STRATEGIC DATA MANAGEMENT PLAN
This is an ideal time to take a strategic approach to managing your data. While risk assessment is one
important application for data management, it’s not the only one. There are a multitude of ways data can
be leveraged strategically to drive several aspects of an operator’s business. A data management plan
becomes more relevant and powerful when all voices (senior leadership, operations, finance, integrity
management, IT, etc.) give input with regard to the process of capturing and integrating the data. When
all key business functions participate in the planning process, the more likely it is that these functions will
assume ownership of the results. Bringing many voices to the planning process also assures that the
data is aligned with the operator’s strategic goals, thus becoming a value-add for the entire organization.
Participants in the data management planning process should be made aware of the goals and strategy
of the plan and be given responsibility for their relevant portion of the data. Once the data has been
collected and shared, these stakeholders can be helpful in evaluating the data as it relates to their
function and how it can drive their long-term goals.
To further enhance the strategic value of the data management plan, consideration should also be given
to the overriding business drivers. One operator may identify security as their key driver, while another
may be more interested in improving operational efficiencies. Most all operators place safety as a primary
driver. Establishing key drivers and alignment with business strategies is the proverbial data management
stake in the ground, it is the fulcrum around which all data management decisions are based.
THIRD-PARTY PERSPECTIVE
With the pressures to maintain a safe and profitable pipeline system, today’s operators may be short of
internal resources to develop the strategic data management plan and perform the data sourcing and
identification tasks described in Table 1. Consulting firms, like EN Engineering, can provide a third-party
perspective in bringing stakeholders together, identifying the gaps in data, evaluating data, and prioritizing
needs.
A key aspect of our data management service is helping the operator prioritize all their data. There is
a cost associated with acquisition, integration, storage, and maintenance of data. The sheer amount
of data possessed by an operator can be overwhelming, even paralyzing. But pending regulations
are forcing operators to more closely examine their data. An outside firm can reconcile the operator’s
business drivers with available data to prioritize what is worth converting, acquiring, and keeping. At EN
Engineering, we use a ranking system to derive our data priorities. With an outside perspective, many
operator’s can take leave of their less-important data and focus on the data that most supports their
strategic vision.
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Separating Pipeline Integrity
Management’s Wheat from Its Chaff
DATA SOURCING AND IDENTIFICATION
Integral to the data management plan is a robust review of the operator’s existing data as well as
identification of correct and missing data. During the process of identifying and collecting necessary data,
there should also be consideration given with regard to pending rules and any data that may be needed to
support activities associated with any new requirements. Table 1 illustrates a process we use in sourcing
and identifying an operator’s data.
1. Determine what data you need, include format. This should include setting a standard protocol for
formatting and frequency. Spreadsheets, so common in the 1990s, are no longer an efficient way to
manage data. There are more advanced data management systems available that can interface with
an operator’s enterprise-wide asset management system. Consider any externally curated data with
national and localized datasets.
2. Determine what data you have. This may require converting or digitizing the existing, legacy data
into a common format. Create an expiration date for data to help streamline information and ensure
its relevancy. Consider the reliability and accuracy of the existing data.
3. Bridge the gap between internal and external data and assess where data is incomplete. Also
analyze the gaps between your current processes and procedures.
4. Make the business case for data. Evaluate the cost to acquire, integrate, and maintain current and
acquired data.
Table 1: Data Source Identification & Evaluation Process
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Separating Pipeline Integrity
Management’s Wheat from Its Chaff
INTEGRITY MANAGEMENT AND RISK ANALYSIS
Once the data has been collected, it can be applied in a number of ways including support of the
overall integrity management program and performing risk analysis—all using actual data. Historically,
companies relied upon subject matter expert knowledge, which was opinion-based—albeit an informed
opinion. With regard to risk models, in the past these were relative to each other, instead of relying on
the actual data. An effective data management program gives operators actual data to apply in various
applications. Now, the analysis is a trigger point for business decisions. Using actual data provides a
more objective understanding of what’s going on within an operator’s organization. This objectivity can be
helpful in identifying future actions. The resulting analysis becomes more powerful because it no longer
relies on models to predict future behavior.
Operators are advised to consider data management (DM) firms
with an integrity management (IM) expertise in the natural gas
and hazardous liquids pipeline segment. A combination of both
backgrounds (DM and IM) can assure a keen understanding of the
various opportunities as well as safety concerns inherent in our
industry.
Ideally, the data collected gives a window into all the details that
support the pipeline and a history of each asset. This is critical, as
our industry migrates toward risk-based program development.
Using data, the consultant and the operator can consider a number
of factors with regard to integrity management and risk analysis.
For example, now the operator can view all assets—across the
board—or track third-party interfaces. The analysis can draw upon
in-line inspection (ILI) data, corrosion data, and contractor history,
for example. Once all of this is in place then it relates to each other.
Operators can identify the location of high-risk welds or fittings in
need of replacement. The likelihood of an asset impacted by an
external force, like landslides, can be determined. Data can also
identify areas requiring encroachment programs, for example,
where contractor excavations have occurred or where structures
have been placed or built above the pipeline. And construction
data can be called upon to identify precisely where a welding
company—or even individual welder—serviced a section of pipe.
We work with operators to design dashboards to assess factor
impacts and drill down to those factors with the greatest impact.
Reports can easily be run to determine federal, local, and internal compliance. Trends can be spotted
to alert the operator of changes in the system and the rate of change. Cost optimization is another key
RISK ANALYSIS
APPLICATIONS
-Dashboard
• Factor impact assessment
• Drill down to factor of
greatest impact
-Compliance Reporting
• Federal
• Local
• Internal
-Trend Identification
• Rate of change
-Cost Optimization
• Risk-driven activity
prioritization
• Optimize life-cycle cost
analysis
• Balancing risk vs. cost
-Probabilistic Transition
• Data collecting
• Archiving
• Measurable data
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Separating Pipeline Integrity
Management’s Wheat from Its Chaff
benefit of a robust data management system. Operators can prioritize risk-driven activity, optimize lifecycle cost analysis, and balance risk versus cost.
With an experienced third-party consultant on board, today’s savvy natural gas and hazardous liquids
pipeline operators can develop a powerful strategic data management plan. This outside expertise can
streamline miles and miles of data into miles and miles of opportunities to inform your business, your
operations, risk management, and ultimately the safety and efficiency of your pipeline.
Example of a dashboard. Graphic courtesy of EN Engineering.
ABOUT THE AUTHOR:
Ellie Souder Lynch is Manager-GIS & Data Analytics at EN Engineering. She has a Master’s of Data
Science degree with a specialization in Artificial Intelligence and considerable experience in the Oil & Gas
and Utility industry. She studied Civil Engineering at Illinois Institute of Technology and has led projects
relating to retrofitting existing infrastructure to use energy more efficiently; mapping and analyzing existing
utility networks for smart grid design; and large main replacement projects. Ms. Lynch established the GIS
& Data Analytics team at EN Engineering where she helps organizations develop sustainable data system
strategies to extract long-term value from their data systems.
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