7/19/2012

CSBMeeting Leadingand LaggingIndicator L i I di Metrics

Houston, TX July 23, 2012

CSBsRequest
TheUSWandAPIwereidentifiedina recommendationfromtheCSBtodevelopan recommendation from the CSB to develop an ANSIbasedstandardtoidentifyleadingand laggingindicatorsforuseintherefineryand petrochemicalindustries Identify leading and lagging indicators for Identifyleadingandlaggingindicatorsfor publicreportingaswellasuseatindividual facilities
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CSBsRequest
Committeebeopen,balanced,usedueprocess andconsensus and consensus Diverserepresentativesfromindustry,labor, government,publicinterest,environmental, expertsandscientificorganizationsand disciplines disciplines

ABetterProcessandOutcome
1. USWviewofhowtheprocessdidnotfunction asrequested as requested 2. ThecurrentRPfailedtomeettheCSB recommendations andmoreimportantly it willnotmakeameaningfulimpactonthe industry 3. Ifindicatorsaretobeadrivingforceforneeded 3 If indicators are to be a driving force for needed improvements,changesneedtobemadein bothmeasuringandreporting 4. Proposalsformovingforward
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Consensus?
C Consensusneedstobeamongthestakeholders d t b th t k h ld identifiedbytheCSB(industry,labor, government,publicinterest,environmental) Arepresentativestakeholderprocesswould precludeindustryfromconsistentlydominating l d i d f i l d i i andoutvotingotherstakeholders astrange notionofconsensus
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Consensus?
Treating each meeting attendee as a stakeholder Treatingeachmeetingattendeeasastakeholder doesnotwork,especiallywhenmeetingsare consistentlydominatedbyindustry Nostakeholdersshouldbeallowedtogamethe systemsbecausetheycanaffordmore systems because they can afford more representativesatthetable

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UnlikelytoMakeanImpact
Withthelimitingdefinitionsadopted,Tier1and2indicators areforlowprobabilityevents Statisticalvaliditywillbedifficulttoachieveexceptatthe corporateorindustrylevels andmaybenoteventhere Thiswasbydesign Therewillbeverylimitedreporting Tothepublicandemployees No site specific reporting Nositespecificreporting Insum,Tier1and2indicatorsandtheirreportingwillbe insufficienttodriveneededchange
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LimitedPublicReporting
Tier3and4leavetoomuchdefinitiontothe individualcorporationandsite individual corporation and site Nopublicreporting Nodriverforchange Summarydatamaybeoflittlevalue,evento employees Companieswilldeterminereportingmethod
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LossofPrimaryContainment
Committeemajorityclassifiedreleasetoeffluent destructivesystemsasnonevents;thesystem destructive systems as non events; the system functionedasdesigned Unionminorityarguedtomovetheseeventstoa publicallyreportablelevel highertier Thesesystemsarethelastlineofdefenseand requiremultiplesystemfailurespriorto activation
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Transparency
Moreconcernwiththeperceptionofcompany performancethanactualnumbers performance than actual numbers Expressedconcernthatthegeneralpublicwas notknowledgeableenoughtousethistypeof information EarlydraftlanguagestatedTransparencycan becounterproductiveatnationallevel(name& shame)andahindrancetoparticipation
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(Non)ReportingExamples
Achargepumpmotorfailedcausingamotorfire andtheshutdownoftheentireunit.Damage and the shutdown of the entire unit. Damage estimatefromthefireisgreaterthanthe$25,000 thresholdforTier1,buttherewasno hydrocarbonreleased,noLOPC,thereforethe incidentinnotAPIreportable.Costofnew motoraloneisover$200,000 Feed line leak on an ISOM unit releases 773 lbs FeedlineleakonanISOMunitreleases773lbs. ofhydrocarbon,(butane,isobutane andpentane) over24hours,doesntmeettheonehourrelease criteria,notreportable
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LOPCNonReportable
April/May2010releaseBPTexasCityrefinery 40daysofflaring513,793poundsof hydrocarbons Material routed to an effluent destruction device Materialroutedtoaneffluentdestructiondevice (flare)anddidntresultin:

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LOPCNonReportable
1. liquidcarryoverordischargetoapotentially unsafelocation 2. Noonsiteshelterinplaceissued,nopublic protectivemeasurestaken 3. Noregulatoryexposurelimitsexceededatany timeduringtheflaring. Thoughsomethingwentwrong,thisevent wouldnotqualifyasaTier1or2eventand wouldnotbereportable.
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EffectiveRegulation
QuotefromtheGulfOilDisasterandtheFutureof OffshoreDrillingReporttothePresident: Offshore Drilling Report to the President:

BasedonthisCommissionsmultiplemeetings anddiscussionswithleadingmembersoftheoil andgasindustry,however,itisclearthatAPIs abilitytoserveasareliablestandard setterfor ability to serve as a reliable standardsetter for drillingsafetyiscompromisedbyitsroleasthe industrysprincipallobbyistandpublicpolicy advocate.
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StepsGoingForward
Setupamultidisciplinegroupconsistingof industry,labor,OSHAandEPAtodevelop indicators i di Addenvironmentalandcommunitygroupsto helpwithreporting UseOSHAasthefocalpoint p Makemeetingsaccessibletoallwhowantto participate
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StepsGoingForward
Setupaseparategovernmentalregulating authorityfortheoilandpetrochemicalindustry authority for the oil and petrochemical industry Developarulemakingprocesstoset standardized,uniform,enforceableregulations I Involveindustrylaborandregulatorsin l i d l b d l i developingtheagencyandrules

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