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El Paso Corporation’s Pipeline Integrity Program

In 2001, El Paso Corporation’s regulated Pipeline Group implemented a comprehensive Pipeline Integrity Program (PIP), the major component of which includes in-line inspection (ILI), re-inspection, and as-necessary repairs of substantially all of the company’s onshore pipelines that are six inches in diameter or larger. El Paso's PIP is above and beyond what is required by federal law but reflects our judgment of not only what is required by a prudent operator but the right thing to do when safety is a core value.

In-line inspection tools, commonly referred to as “intelligent pigs,” enable pipeline operators to inspect pipelines from the inside, and, from the data collected, provide a means to identify metal loss in the wall of the pipeline. To be able to run the ILI tools through the inside of the pipeline, modifications must be made to make the system “piggable.” Once the system is made piggable, then inspections are conducted using the ILI tools. Data collected during the inspection is evaluated and used by operators to make decisions to monitor or remediate anomalies in an effort to ensure the integrity of the pipelines.

The ILI program covers substantially all of El Paso’s onshore interstate natural gas transmission pipeline, including large-diameter, high-pressure pipe, and pipe in densely populated areas, commonly referred to as High Consequence Areas.

Some segments of El Paso’s systems cannot accommodate ILI and, therefore, are not part of that program because those segments do not permit the successful passage of an ILI tool through their interior. Facilities which are not susceptible to being inspected using ILI tools include offshore lines, storage lines, gathering systems, measurement facilities, compressor stations, and lines smaller than six inches in diameter, as well as pipelines with insufficient line pressure and/or flow rates, pipes with combinations of small diameters or with certain fittings and bend-types associated with such small diameter pipes. Because of the specific attributes of these assets, El Paso and the industry generally recognize that using ILI is not appropriate. These facilities are monitored, tested and inspected for internal corrosion by El Paso using other methodologies, for example non-destructive evaluation, to evaluate these facilities.

El Paso’s ILI program is now well past its half-way point. As of the end of the second quarter 2007, approximately 71 percent of El Paso’s pipelines that are ILI-capable had been inspected at least once. As of June 30, 2007, on El Paso Natural Gas pipeline alone, approximately 78% of the system that can be made piggable had been modified to run ILI tools and 68% of that system had been inspected.

In addition to the ILI component of the overall program, El Paso has:

• Instituted an extensive internal corrosion monitoring, control, and training program throughout our pipeline systems. We believe we have one of the leading internal corrosion control programs in the interstate natural gas transportation sector. El Paso’s program has been recognized by NACE International, the largest organization in the world committed to the study of corrosion.
• Implemented site-specific internal corrosion plans for all of our pipelines. We conduct an annual review of the plans and make modifications where necessary to ensure adequate evaluation of equipment and pipeline in all areas of operation.
• Stepped up monitoring of conditions inside pipelines by inserting small pieces of pipeline steel, called “coupons,” at strategic locations to expose these coupons to the same conditions that exist at the interior wall of the pipeline being monitored. The coupons are periodically removed, weighed, and examined for any evidence of corrosion. Such testing, which is an accepted industry practice, gives our corrosion engineers an idea of what actions, if any, should to be taken to minimize the possibility of internal corrosion or carry out mitigation measures.
• Established an extensive natural gas quality program. We continually assess the quality of natural gas that we obtain from our customers, using established El Paso specifications and guidelines. The program uses telemetry to obtain real-time readings, and a database assists our personnel in identifying and analyzing natural gas quality trends.