At Enterprise, safety is our top priority and is at the core of our value system. We promote a culture in which all personnel share the same commitment to health and safety excellence and recognize that this requires personal involvement at all levels of management. At Enterprise, we recognize that safety breeds reliability and we have established a solid record of protecting our people, the environment and the communities in which we operate. All of our personnel are expected to adopt, embrace, promote and follow these basic principles:
- No task is so important that it be performed at the risk of safety.
- Everyone takes personal responsibility for working safely every day.
- Employees have the obligation to stop work they consider unsafe, regardless of who is performing the task.
- Cardinal Rules, safety policies, procedures, and practices are critical to a safe work environment and should be followed at all times.
- All safety-related incidents and near misses are learning opportunities and must be reported.
- Safe operations are an expectation of our neighbors, fellow workers, contractors, unitholders, regulators, and other stakeholders.
Assisting areas of Safety
- We have Health and Safety committees company wide.
The Safety Leadership Council is comprised of:
Randa Duncan, Chairman of the Board
Jim Teague, Chief Executive Officer
Randy Fowler, President
Graham Bacon, Executive Vice President of Operations and Engineering
Bill Ordemann, Executive Vice President of Strategy Development & Implementation
Bob Sanders, Senior Vice President of Asset Optimization
Bill Hall, Vice President of Trucking & Marine
Greg Watkins, Vice President of Corporate Risk
Ivan Zirbes, Vice President of EHS&T
Jeff Morton, Senior Director of Transportation Compliance
Gerry Stratmann, Senior Director of Safety
- Our overall cybersecurity strategy is designed to minimize cyber risk exposure to the company’s corporate network and the control systems of our plants and pipelines. This strategy includes multiple layers of preventative measures, an employee awareness program that includes educating employees about phishing and other cyber risks, an incident response plan to ensure preparedness, and a cross functional Cybersecurity Steering Committee to provide guidance around cyber risk management.
- Our corporate security is responsible for managing risks around our physical assets including liaising with local law enforcement maintaining, monitoring video surveillance, and communicating with management.
- Every morning starts with a Daily Safety Moment Initiative email.
We work together and look out for each other’s safety to successfully meet our goals.
In support of that mission, we promote a culture in which all employees are committed to applying these principles to every task, every day and every time.
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Safety Performance Metrics
Enterprise pursues the goal of zero incidents and injuries by managing health and safety risks, intervention, promoting safety awareness through training and competency, communicating our commitment to stakeholders, and by measuring and auditing our safety performance. Zero incidents means no harm to people, no lost work time, and no incidents. We recognize that no task is so important that it be performed at the risk of health and safety.The OSHA Recordable Incident Rate is calculated by multiplying the number of recordable injury cases by 200,000, and then dividing that number by the actual number of labor hours at the company.
Maintenance Expenses & Sustaining Capital
Maintenance Expenses & Sustaining Capital
Enterprise spends ~$1 billion a year on maintaining our assets; including pipeline and mechanical integrity, storage well work-overs, and other maintenance projects.
|($ in MMs)||2016||2017||2018|
|Repair and maintenance expenses||$583||$599||$710|
|Pipeline integrity management expenses||$68||$65||$85|
|Subtotal maintenance expenses||$651||$664||$795|
|Sustaining capital costs||$252||$244||$321|
|Total maintenance expenses and sustaining capital||$903||$908||$1,116|
Integrity management expenses includes both pipeline integrity and corrosion prevention expenses.
In total, our pipeline integrity costs for the years ended 2018, 2017 and 2016 were $122.0 million, $91.1 million and $103.7 million, respectively.
- Of these annual totals, we charged $71.8 million, $52.3 million and $55.8 million to operating costs and expenses during the years ended 2018, 2017 and 2016, respectively.
- The remaining annual pipeline integrity costs were capitalized and treated as sustaining capital projects.
- We expect the cost of our pipeline integrity program, regardless of whether such costs are capitalized or expensed, to approximate $126 million for 2019.
Safety & Audit Programs
Enterprise has a mature EHS&T Audit process under which more than 100 audits are performed every year.
Subject areas include:
- Health and Safety
- Process Safety Management
- Focus Audits
Enterprise utilizes satellite as the primary form of communications at over 1,000 sites to provide monitoring and control of our pipelines and associated facilities. The satellite system provides the transport of voice, video, SCADA, measurement, controls and corporate data necessary to operate these facilities. There is a project underway that is replacing the legacy satellite technology with a more robust and cost effective solution. This new system provides Operations with more timely and reliable information which, together with other key aspects of operating a safe pipeline, improves our ability to maintain safe, environmentally responsible, and reliable service from our pipelines.
The new satellite system includes redundant backup communications at each site, reducing the need for personnel callouts to provide immediate repairs, and pushing after hours night-time callouts into the normal business day. The system also has robust monitoring and remote support capabilities such that tasks that used to require a site visit by a technician, like troubleshooting or updating a PLC, can now be done remotely. With more than twice the speed of the legacy system and a 40% improvement in reliability, Pipeline Control will receive more timely and accurate critical operating measures like pressures, temperatures and leak detection indicators.
Our $5.85 million upgrade to state of the art satellite communications was completed in December 2018 and will provide an effective long-term solution for critical communications to Enterprise’s strategic assets.
Enterprise Pipeline Integrity Management Program
The Enterprise Pipeline Integrity Management Program maintains the ongoing integrity of operated pipelines and pipeline related facilities as defined in 49CFR Part 192 Subpart O and 49CFR Part 195.452 by:
- Identifying threats to pipeline safety and establishing the scope and frequency of integrity assessments.
- Performing integrity assessments, analyzing the results, and determining remediation requirements.
- Performing remediation.
- Updating processes and procedures for High Consequence Area Impact Analysis, Risk Assessment, and integrity management program evaluation.
Assessment of our Pipeline Assets Since 2014
|Year||Required by Regulation||Discretionary||Grand Total||
|Year||Required by Regulation||Discretionary||Grand Total||
Enterprise Corrosion Prevention Program
The Enterprise Corrosion Prevention Program covers all our operated pipeline systems and facilities. These services and programs include the following:
- Maintain compliance with federal and state agencies governing corrosion control.
- Prepare for and participate in regulatory audits by state and federal agencies.
- Create and maintain appropriate records/documentation for participation and presentation in regulatory inspections.
- Cathodic Protection.
- Operate and maintain over 3,200 cathodic protection systems.
- Perform periodic field surveys of approximately 74,000 monitoring sites that require the Corrosion Technician to physically traverse the right of way to each location.
- Conduct approximately 4,600 miles of close interval cathodic protection surveys annually.
- Install approximately 225 cathodic protection systems annually.
- Internal Corrosion Control.
- Perform and/or coordinate monitoring and mitigation for internal corrosion through approximately 800 monitoring locations.
- Review system-operating data to determine the need for additional internal corrosion monitoring, cleaning, pigging, and/or chemical treatment.
- Atmospheric Corrosion Control.
- Perform atmospheric corrosion inspections on above-ground facilities and pipe exposures at over 14,000 monitoring locations.
- Assist with prioritization and planning of coating projects based on inspection data.
- Protective Coatings and Linings
- Recoat an average of 55,440 feet (10.5 miles) of pipeline annually.
- Assist in the selection of appropriate coatings for new or existing assets.
- Materials Selection and Design/Project Support
- Assist in the selection of appropriate materials and design procedures for new or existing assets.
- Provide corrosion prevention system design review on new pipeline and facility projects.
At Enterprise, we understand the importance of developing and delivering consistent, high-quality safety, technical and compliance training to our pipeline, facility and transportation employees. This training furthers the skills of Enterprise employees, reinforces safety as a core value and supports our commitment to 100 percent compliance with applicable regulations. We also have a Technical Writing Group responsible for development and implementation of the operating and maintenance procedures for all assets within our company.
Contractor Safety Management
At Enterprise, contractors are an essential part of new construction, expansion work, maintenance, project management and safety, and operational oversight. Because they are such an essential part of our day-to-day operations, contractor safety compliance is fundamental to our overall health and safety performance. We rigorously vet all of our contractors as part of our supplier qualification process. All contractors receive safety manuals and in-depth training and site orientations. Frequent safety audits are conducted to monitor and certify compliance with all Enterprise policies and procedures. Prioritizing safety is reinforced by the commitment made in each Master Service Agreement between Enterprise and our contractors.
Key Technical Training Metrics
- Enterprise Training and Procedures Department - comprised of more than 50 employees that support all training and procedure development for personnel nationwide.
- Mont Belvieu Training Center - a 14,000 square foot facility capable of handling more than 70 students per class and averages 190 classes per year.
- Utilizes state-of-the-art simulation equipment to create a real-world learning experience for employees.
- Routinely partners with more than 25 different vendors and technical contractors to provide specific types of training (e.g. line locate, hot tapping, product sampling and bolting).
- In addition to classroom training, we offer over 300 online courses.
An example of technical training is our “Right of Way College” which was designed for employees to safely and accurately locate and document Enterprise’s underground assets. This class was developed as a means to ensure that all personnel responsible for responding to e-call tickets and performing line locate activities are qualified to perform these tasks. Employees responsible for Line Locate must complete a four day initial training and a two day refresher class every three years thereafter.