SHAW ENVIRONMENTAL Track 2006 The Shaw Group 4171

SHAW ENVIRONMENTAL Track # © 2006 The Shaw Group • 4171 Essen Lane Baton Rouge • LA 70809 USA

SHAW ENVIRONMENTAL RESTORING TRUST IN PIPELINE SAFETY: The Role Of The Project Team & Field Operations Personnel Track # 2

The Role Of The Project Team & Field Operations Personnel My objective is to review with you the following: • What has changed between Pipelines & Stakeholders? • The obligations of the parties going forward. • What changes need to occur to continue the momentum of stakeholder involvement and the effort towards mutual trust? Track # 3

The Role Of The Project Team & Field Operations Personnel What has changed between Pipelines & Stakeholders? • Industry went from my way or the highway! • We moved from the “eminent domain stick” to public consultation and mutual gains. • Not all operators have bought into this yet. • Field operations staff want to be better prepared to interact with the public. Opportunity to develop effective communication tools for the operators and stakeholders. Track # 4

The Role Of The Project Team & Field Operations Personnel What has changed between Pipelines & Stakeholders? • Population and pipelines overlapped • Urban growth • Dig safe legislation • One-call systems became so important for people and pipelines to co-exist safely. • Merger mania… • Changes in the workforce • Technological advances • Reduced field staff • Outsourcing of many operational activities Track # 5

The Role Of The Project Team & Field Operations Personnel What has changed between Pipelines & Stakeholders? • Presence in the community was reduced, measures were put in place to continue to operate pipelines and interact with landowners and stakeholders. • RP 1162 – Public Education Initiatives & Stakeholder Involvement • FERC Stakeholder Involvement & Order 609 – Landowner Notification Requirements Track # 6

The Role Of The Project Team & Field Operations Personnel What are the obligations of the parties going forward? Pipeline Operators: To operate a safe pipeline • To properly mark & locate their systems Active participant in One-Call organizations • For ROW’s to look like ROW’s • To be well prepared for an emergency • To be committed to public education about pipelines • Effective public outreach for their expansion programs • Communicate effectively with Landowners & Stakeholders • Measure comprehension of public awareness messages • What is the feedback thus far? Track # 7

The Role Of The Project Team & Field Operations Personnel What are the obligations of the parties going forward? Landowners & Stakeholders: • Understand Know your Property Rights • To utilize One-Call system & ensure your contractors are aware of utilities on property • Landowners monitoring dig activities along pipelines • To utilize the public education information in a positive manner • Open & honest negotiations • Opportunities to be more aware of activity –Step up monitoring – recognize & report Track # 8

The Role Of The Project Team & Field Operations Personnel What changes need to occur to continue the momentum of change? • Training of Project Team & Field Operations staff • To make them effective communicators with Landowners & Stakeholders • Effectively communicate risk management to stakeholders • Become part of the community • Most operator’s desire to increase trust and confidence with stakeholders Track # 9

The Role Of The Project Team & Field Operations Personnel We want to bridge role of the appropriate field personnel as the “face of the Company” in their normal day-to-day contacts with key stakeholders. Program includes Damage Prevention & Public Awareness initiatives to generate an effective Public Outreach Program to build trust and confidence in the Operator. Ultimately building consensus for new projects. Support for Energy Infrastructure Track # 10

The Role Of The Project Team & Field Operations Personnel Established relationships with key stakeholders will assist with the following: • Build trust and confidence with Stakeholders and consensus for new Projects. • Emergency Response Drills • Pipeline Expansion Projects Track # 11

The Role Of The Project Team & Field Operations Personnel • To Educate field personnel on the new regulations and Operator’s requirements on public education and safety. • To familiarize the Project Team (ROW, Environmental, etc. ) with the FERC stakeholder process and tools available to public for pipeline expansion projects. • Bridge safety message Track # 12

The Role Of The Project Team & Field Operations Personnel Conclusions • To train field representatives on conflict resolution and understanding the landowners’ side of the project and how the Company is viewed by the public. • To provide field personnel with the tools they need to accomplish mutual gains and presenting safety measures to stakeholders. • To work with local & state officials to ensure that they are appropriately engaging with pipeline operators and asking the right questions. Track # 13