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Southern California Gas Company Marco Tachiquin Project Manager - DIMP (626) 319-0629

AGA Distribution Best Practices Program Leak Management Potential Roundtable Executive Presentation. Southern California Gas Company Marco Tachiquin Project Manager - DIMP (626) 319-0629 Mtachiquin@SempraUtilities.com. Company Background. Number of Customers 5,497,290 Miles of Main

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Southern California Gas Company Marco Tachiquin Project Manager - DIMP (626) 319-0629

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  1. AGA Distribution Best Practices ProgramLeak ManagementPotential Roundtable Executive Presentation Southern California Gas Company Marco Tachiquin Project Manager - DIMP (626) 319-0629 Mtachiquin@SempraUtilities.com

  2. Company Background Number of Customers 5,497,290 Miles of Main 48,868 Number of Services 4,359,727 Number of Employees 7,136

  3. Leak Management Unique Processes • Distribution Risk Evaluation and Monitoring System (DREAMS), started in 2007, implemented in 2008 • Systematic approach to segmenting and risk-ranking mains & services • Steel, not under CP • PE installed prior to 1986 • All PE with Integrity Relevant Leak History • Pre-assessment work to define segments • Material, Size, Vintage, Environment, Business Districts • Corrosion leaks eliminated as a result of strategic replacements of worst performing mains & services • DREAMS interface with new GIS system and regulatory requirements • Over $37.5MM (Direct) annual expense on replacement work; 315,000-ft (2010 data)

  4. Highlights that would be included in roundtable presentations • Special Surveys • Increased leak surveys on segments that are scheduled for replacement but deferred due to resource allocations • Procedures for associating leak records to main segments and services. How we utilize knowledge of pipeline condition to manage leak probabilities and O&M activities.

  5. Leak Management Challenges • SCG Does not report all above ground leaks • MSA’s, Regulator Stations or M&R Facilities • DIMP Regulations will require reporting in the future • Increased Leak Survey of DOT Transmission Lines as a result of incidents in California (Bi-monthly on specific segments) • Leak Survey maps on grid maps versus optimized in GIS.

  6. Conclusion • Why you believe other companies can learn from your experiences/processes • Material Control • Rigid control of materials • Material evaluation process is tight • Material QA process • Risk Evaluation & Monitoring System (DREAMS) • Evolved automated system for risk ranking mains & services • Effective field procedures and training

  7. Questions

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