Colonial Pipeline’s Response to Hurricanes Katrina and Rita Steve Jacobs Vice President, Operations Colonial Pipeline Company November 2, 2005 Colonial Pipeline Profile • 5,519 5,519 mile mile system system from from Houston Houston to to New New York York Harbor; Harbor; operating operating since since 1963 1963 • Delivers Delivers more more than than 2.4 2.4 million million barrels/day barrels/day petroleum petroleum products products from from approximately approximately 30 30 refineries refineries to to more more than than 250 250 terminals terminals • 20 20 percent percent of of all all U.S. U.S. liquid liquid product product delivered delivered by by pipeline pipeline are are handled handled by by Colonial Colonial 1 Hurricane Katrina Impact • Knocked Knocked out out power power to to 77 Colonial Colonial pump pump stations stations in in Mississippi Mississippi and and Louisiana Louisiana • Colonial’s Colonial’s two two mainlines mainlines were were fully fully shutdown shutdown for for 55 55 hours hours • Restarted Restarted at at partial partial capacity capacity by by installing installing temporary temporary power power -- 19 19 diesel diesel generators generators from from 99 states states • Added Added incremental incremental capacity capacity over over aa 9-day 9-day period period until until full full commercial commercial electrical electrical power power was was restored restored Affected Area Hurricane Rita Impact • Knocked Knocked out out power power to to 55 pump pump stations stations in in Texas Texas and and Louisiana Louisiana • Two Two mainlines mainlines were were fully fully shutdown shutdown for for 48 48 hours hours • Restarted Restarted at at partial partial capacity capacity by by installing installing 15 15 diesel diesel generators generators from from 99 states states • Added Added incremental incremental capacity capacity over over aa 19-day 19-day period period until until full full commercial commercial electrical electrical power power was was restored restored Affected Area 2 Colonial System Capacity Impact % Mainline Capacity Utilized 120% 100% 80% 60% 40% Katrina Rita 20% September August 25 20 15 10 5 30 25 20 15 10 5 31 26 21 16 11 6 1 0% October Colonial System Capacity Impact Supply Constrained % Mainline Capacity Utilized 120% 100% 80% 60% 40% Katrina Rita 20% August September 25 20 15 10 5 30 25 20 15 10 5 31 26 21 16 11 6 1 0% October 3 Hurricane Preparedness Plan Set in Motion Prior to Landfall Assets • Began reviewing hurricane emergency plans with personnel in targeted region and Atlanta headquarters 5 days before landfall • Secured tanks and facilities – Slowed pipelines prior to the storm – Ensured specific level of product in tankage – Dispatched satellite phones in anticipation of losses to normal communication People • Gathered contact information for all area employees • Evacuated employees in MS and LA just prior to landfall • Following landfall, all employees were contacted to confirm their safety; then maintained contact as they returned home and reported to work locations Hurricane Rage 4 Aerial View of Downed Transmission Towers Wind Damage, Flooding at Colonial Facilities 5 Incident Management: Baton Rouge, LA and Alpharetta, GA Crisis Management Team – Headquarters Incident Command – Onsite Challenging Working Conditions 6 Teamwork & Coordination Installing Distributed Generation 7 Successful Generator Installation With With NO NO Safety Safety Incidents Incidents … … Lessons Learned: Industry and Colonial Commercial Power Reliability • Excellent response by most primary power suppliers; however, some utilities do represent risk to power reliability • Colonial is evaluating redundant power supply options Communications • Communication was critical to manage Colonial’s response effort • Without land line and cell service, satellite phones provided good coverage initially; however, the network became quickly oversubscribed as emergency responders flocked to the area Federal Relations • Communication with federal agencies was critical to enable vital support in terms of waivers and escorts for generator transportation • More clearly defined contact points within the federal government made Rita response easier than Katrina response (far fewer duplicate requests and clearer channel to contact government) 8 Lessons Learned: Industry and Colonial Humanitarian Assistance • Providing support to employees and their families first enabled them to then focus on Colonial restoration of service without distraction Physical Security and Access • • Colonial hired private security for facilities and to serve as escorts for employees traveling to and from facilities. DOT assisted Colonial with providing escorts for generators as they traveled across the country Aerial Reconnaissance • • Colonial contracted charter aerial patrol to assess damage to facilities and stage repairs Some other operators reported difficulty getting clearance to conduct similar flyovers; would be helpful if the FAA could determine priorities and inform companies of those priorities Media Coverage • Extensive media coverage created a high profile for the pipeline industry; This required focus on accurate, frequent, and proactive communication with regulators, customers, and the media “Look for solutions to constraints versus constraints to solutions.” 9
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