Information Hearing The San Bruno Explosion Pipeline Safety

Information Hearing The San Bruno Explosion: Pipeline Safety In California Panel IV – Maintenance, Inspection & Financing of Gas Transmission Pipelines October 19, 2010 1

Measures taken in response to San Bruno Incident § Increased Public Awareness Communications • Added pipeline location maps on website (English and Spanish) • Includes all high pressure distribution and transmission • Safety Message Brochure mailed to customers within 1/8 mile of Transmission Pipelines • Face-to-face meetings with cities, customers and agencies • Providing electronic GIS pipeline maps to agencies • Extensive media education § Operations • Completed additional leak surveys on transmission pipelines to ensure all piping has been surveyed in last 6 months • Mutual assistance provided to PG&E (over 1100 miles of leak surveys) • Recent CPUC audit of Integrity Management program 2

Integrated Pipeline Safety Approach § A system design that meets or exceeds all codes and standards • • Material specification (pipe, valves and fittings) Valve placement Overpressure protection Geotechnical hazard mitigation § Best Practice Operations and Maintenance Program • • • Routine Inspections and Maintenance Leak surveys Corrosion control inspections and prevention Preventive maintenance on equipment Baseline Process Damage Prevention (call 811) § Pipeline Integrity assessment and periodic reassessments(HCA) • Prevention and Mitigation Plans (system-wide) • Infrastructure improvement plans § Continuous Improvement 3

Transmission Assessment Summary (as of September 2010): Ø 4, 172 Miles of Transmission Line ² 938 HCA Miles Inspected (74%) ² 1, 934 Total Miles Inspected (46%) 4

Technology Development Commitment § So. Cal. Gas spends ~$2. 5 MM/year on collaborative gas infrastructure RD&D, which leverages ~$25 MM of industry research § Actively participated for over 50 years with industry groups such as PRCI, AGA, GTI, INGAA, OTD to encourage development of new technology § Collaboration includes other pipeline operators, universities and government § Seeking out the newest technologies such as: • NYSEARCH TIGRE and Explorer II Robotic Inspection for unpiggable pipelines • PRCI Internal Corrosion Assessment Model/Tool • Guided Wave 5

Emergency Response § 24 -hour active management, including pressures and flows, by So. Cal. Gas Control § Incident response crews located in the regions available to respond 24/7 § In-line supervision and executive management trained and available 24/7 to activate Emergency Operations Center and Gas Emergency Center § Incident response protocols in place – tested and reviewed annually § Drills conducted with first responders, Office of Emergency Service, local fire departments and other agencies § Proactively meet with first responders throughout territory 6

Integrity Management O&M and Capital Total Spent 2004 – 2009: O&M $69 MM Capital $178 MM 7