DIMP Compliance Initiatives

The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a final rule in December 2009 concerning distribution integrity management programs (DIMP) for natural gas companies. Created to enhance safety, DIMP requires companies take a “risk-based” approach to pipeline safety rather than a “prescriptive” approach. DIMP will have far reaching implications in the pipeline safety arena.
Southern Cross is actively engaged with a number of natural gas companies as they expand their focus on DIMP compliance. Specifically, DIMP requires each natural gas company to:

• - Inventory, catalog and maintain detailed records on their system, including materials used, location, pipe size and operating pressure, manufacturer, date installed, and other factors.
• - Identify and define risks in each of the following categories and report to the U.S. Department of Transportation:
  • - Corrosion
  • - Natural forces
  • - Excavation damage
  • - Other outside force damage
  • - Material or weld failure
  • - Equipment malfunction
  • - Inappropriate operation
• - Evaluate and prioritize risks by material, location, operating pressure and other factors.
• - Implement initiatives to reduce or eliminate risks for each identified problem and develop appropriate remediation programs, specifically with  respect to leak detection and management, damage prevention, and assurance of individual performance.
• - Measure, monitor and evaluate program results and effectiveness, including number of repaired leaks, a report same accordingly.
• - Develop and institute a quality improvement program to ensure the integrity of the DIMP program.
• - Report activities and result to federal and state agencies as warranted

In short, DIMP requires the development and implementation of a workable infrastructure and process to more aggressively track and analyze system components based on potential risk factors. In addition, it places significant responsibilities on gas companies to report more frequently to PUCs.  Southern Cross is ready, willing and able to perform these DIMP compliance services for natural gas companies.

For more information on Southern Cross DIMP compliance programs, please contact Steve Whitman at swhitman@southerncrosscorp.com.