Pipeline Integrity: Program Develpoment, Risk Assessment and Data Management
Bruce R. Nelson, P.E.
Gas Distribution Manager, Montana-Dakota Utilities Co.
400 North Fourth Street
Bismarck, ND 58501
Telephone: 701.222.7784, Fax: 701.222.7853
Email: bruce.nelson@mdu.com
Abstract
The Office of Pipeline Safety (OPS), Research and Special Programs Administration (RSPA) of the US Department of
Transportation (DOT) intend to issue pipeline integrity management program requirements for gas transmission
pipeline operators. These integrity management program requirements will be issued as part of a two-step process. The
first part deals with the definition of High Consequence Areas (HCA) and was issued on August 6, 2002. The second
part deals with the requirements for the implementation of a Integrity Management Plan (IMP), and is anticipated to be
issued by OPS as part of the final integrity regulations in 2003. Gas transmission pipelines that “affect” HCA’s will
require inspection under an operator-developed IMP. This paper presents Montana-Dakota Utilities Co.’s process for
integrating these new regulatory requirements within its complex, multi-company, corporation to both efficiently and
effectively maintain compliance with DOT’s proposed pipeline integrity rule. Montana-Dakota’s methods include the
use of a team approach and Geographic Information System (GIS) technology to enhance the cost effectiveness of its
process that will cover over 3,300 miles of DOT classified gas transmission pipeline.
Company Background
MDU Resources Group, Inc (MDU) started in 1924 as a small electric company along the Montana-North Dakota state
line and added a 50-mile gas line to fuel an electric power plant. Today, with a continuing growth strategy, 80 companies
and approximately 10,000 employees comprise MDU. We have 2.2 billion in revenues and 2.6 billion in assets and
operate in 42 states including, Alaska and Hawaii, and in the Gulf of Mexico, United Kingdom and recently Brazil, South
America.
MDU Resources Group, Inc. (MDU) provides energy, value-added natural resource products and related services that
are essential to our country’s energy, transportation and communication infrastructure. MDU includes electric and
natural gas utilities, a natural gas pipeline, utility services, natural gas and oil production, construction materials and
mining, and energy services.
Integrity Management Program
MDU companies own, operate and maintain over 4,500 miles of natural gas gathering, transmission, and distribution
pipelines throughout seven midwestern states. These lines vary in pipe size, operating pressures, materials and
installation vintage. The Integrity Management Program (IMP) being developed is a composite effort of all these
companies. Since the integrity regulation is still being formulated, MDU’s plan is based on the Final Rule HCA
definition, anticipated final integrity management program requirements, industry publications published by the Gas
Piping Technology Committee, ASME and other industry related papers. Some of the data presented, was created to
exemplify and illustrate how the elements of an IMP, including baseline assessment, integrity assessment inspection
methodologies, i.e. in-line inspection, pressure testing, and direct assessment; interval periods; risk assessment;
mitigation; and re-assessment actions.
For MDU, the first step in developing our Integrity Management Plan was the creation of a team of experts. We
identified our internal core expertise and supplemented shortfalls with outside assistance to formulate a strong integrity
management team. Our team is comprised of individuals from our three companies operating transmission pipelines, Harp Engineering, Inc, a consulting engineering company, and the James W. Sewall Company. Each entity brings
special skills that we believe will result in an effective compliance plan.
Our Integrity Management Plan is an iterative process that involves data gathering and organizing and completion of the
risk assessment of each threat and for each of our pipeline segments. The plan establishes a template for use in writing
the site-specific options for cost effective data management, risk assessment and mitigation techniques.
MDU is a complex, multi-company, corporation and effective communication is an important part of our program. The
communication plan follows a specific format to ensure that effective communications exist with our employees, the
public, emergency responders, local officials and DOT jurisdictional authorities. This plan incorporates our existing
emergency response procedures and builds on the relationships established through routine operations.
Pipeline systems and the environment in which they operate are dynamic. Our corporations’ goal is to provide high
quality, cost-effective products and services to our customers while conducting business with “integrity” and with
respect to all. Since operations continuously change, we developed a systematic process to ensure that prior to
implementing changes to the pipeline system, design, operation, or maintenance functions, options are evaluated for
their potential risk and cost impacts. This process also assures good communication and coordination between business
units for alternative analysis, thereby achieving each business units’ strategic plan, while maintaining the corporations
financial performance.
