Southern Star Central Gas Pipeline, Inc

Southern Star Central Gas Pipeline, Inc. 

Notice ID: 3653 Critical Notice Indicator: N Notice Status: Initiate Posted Date/Time: 10/20/2010 10:45:00 AM 

Notice Type: Non-Critical Notice Eff Date/Time: 10/20/2010 10:45:00 AM Reqrd Rsp: No Response Required Duns Number: 007906233 

Southern Star Central Gas Pipeline 

FALL CUSTOMER MEETING 

OCTOBER 12, 2010 

INTERCONTINENTAL, KANSAS CITY AT THE PLAZA

Jerry Morris 

2 

PRESIDENT & 

CHIEF EXECUTIVE OFFICER

• Industry Facts 

Pipeline Integrity & Safety 

◦ Interstate Transmission = 220,000 miles 

◦ Total Pipeline – 2.4 million miles 

◦ Congress enacted Pipeline Safety Act in 1968 

3 

◦ Pipeline Transportation is The Safest Form of Interstate 

Transportation Regulated by DOT (PHMSA) 

◦ Intrastate (PG&E) largely Regulated by States (DOT proposed 

DIMP in 2008) 

◦ Pipeline Safety Improvement Act of 2002 Mandated Integrity 

Management Program (IMP) for Transmission Lines 

◦ By the End of 2012,100% of HCA’s and 65% of Total Interstate 

Miles will have been assessed

• Southern Star Facts 

Pipeline Integrity & Safety 

◦ Total Miles of Pipeline – 5,900 

◦ Total Miles within High Consequence Areas (HCA’s) – 168 

◦ 81% of HCA Assessments Complete by End of 2010 

◦ Approximately 1,900 Total Miles will have been Assessed by 

End of 2010 

◦ Southern Star 2010 Integrity Expenditures 

$14 Million in Capital Projects 

$10 Million in Assessment Expense 

4

Southern Star – The Vision 

5

Legislative and Political Outlook 

Heading into 2010 Mid-Term Elections 

IMPLICATIONS FOR THE NATURAL 

GAS PIPELINE INDUSTRY 

6 

VICE PRESIDENT, LEGISLATIVE AFFAIRS 

INTERSTATE NATURAL GAS ASSOCIATION OF AMERICA 

Martin Edwards 

Southern Star Central Customer Meeting 

October 12 th , 2010

Gone Fishing – Congress Stands in Recess Until After 

the Elections 

• As anticipated, it was a slow summer for Congress 

legislatively. While Congress was able to complete 

Wall Street regulatory reform, pass a small business 

lending bill, and confirm a new Supreme Court 

justice, many high profile issues fell by the wayside 

due to election year politicking. 

• Outstanding must-pass legislative items will have to 

wait until after the November 2 nd elections. 

• Congress will return for a weeklong “lame duck” 

session from Nov. 15-19, with a second brief session 

in December also possible. 

7

The Lame Duck Session 

8 

• The primary focus of the lame duck will be to address 

spending bills needed to keep the government running. 

Congress was not able to pass any of the 12 annual 

appropriations bills needed to fund the government prior to 

recessing for the elections. 

• A continuing resolution was passed which funds 

government agencies at FY10 levels until Dec. 3 rd . 

• A second CR could be passed to fund the government at 

current levels into next spring, or Congress could combine 

multiple spending bills, setting new funding levels, into a 

large omnibus package.

The Lame Duck Session (cont.) 

• Beyond dealing with appropriations, Congress will take 

up the issue of expiring tax cuts. It is likely that tax cuts 

for the middle class will be extended, but cuts for higher 

income earners may be allowed to expire. Without some 

action by Congress, all tax cuts would expire on Jan. 2, 

2011. 

• Some action on energy and climate related issues is 

possible. Sen. Bingaman (D-NM) has expressed a desire 

to bring a renewable electricity mandate bill to the floor. 

Sen. Reid also plans to hold a vote on a bill incentivizing 

the purchase of natural gas vehicles. 

9

Potential Action on Pipeline Related Issues 

10 

• A comprehensive climate change bill is dead for this year – 

and likely for the next Congress as well. 

• A bill from Sen. Jay Rockefeller (D-WV) to block EPA from 

regulating greenhouse gases from industrial/power sources 

for two years has gained steam in the Senate and likely has 

the needed 60 votes to pass. Timing for a vote on the bill is 

a wildcard, but look for Republicans to attempt to attach it 

to spending or other “must-pass” legislation. 

• If a pipeline safety reauthorization is not passed during the 

lame duck, it will be an ongoing issue for 2011 and the next 

Congress.

Pipeline Safety 

• The Enbridge and San Bruno accidents have created a greater 

interest and urgency to this issue. 

• House and Senate committees of jurisdiction have held many 

recent hearings and several bills have been introduced. 

11 

‣ Feinstein/Boxer bill – would require automatic shut off valves for pipelines 

and would prevent pipelines from operating at high pressure unless they are 

internally inspected by smart pigs. Viewed as being heavy on new mandates. 

‣ Rockefeller/Lautenberg bill – would increase civil penalties for violations of 

pipeline safety law, require automatic shut off valves, and eliminate local 

exemptions from state “one call” programs. Generally considered a 

reasonable compromise bill. 

‣ Administration bill – lacks the “one call” provisions, but authorizes 40 new 

pipeline inspectors for PHMSA. Generally viewed as the more modest of the 

proposed bills. 

‣ If a consensus can be reached in the Senate Commerce 

Committee, then action during the lame duck is possible, but still 

a long shot, given the crowded calendar and short time frame.

Political Factors Heading into the Mid-Term 

12 

• Dissatisfaction over unemployment and the state of 

the economy are the overriding factors heading into 

the election. 

• Anti-Washington and anti-establishment sentiment 

are also running high, threatening incumbents and 

candidates backed by the national parties on both 

sides. 

• The result may be a step back from attempting to 

enact big programs with big costs and major 

regulations (e.g., cap-and-trade).

Are Energy/Climate Issues Important to Voters 

13

Public Opinion & Pipeline Safety 

• A recent poll found that 56% of Americans are at least somewhat 

concerned about the safety of natural gas pipelines, but opinions vary 

about who would do a safer job operating natural gas pipelines. 

14 

20% 

12% 

68% 

Source: Rasmussen Reports poll, Sept. 2010

Is a Wave Election Coming 

15 

• Polling continues to support that this will be a bad election 

for the Democrats. The chart below reflects the percentage 

of Americans who would currently vote to re-elect their 

member of Congress, versus voting for someone else. 

31% 

Source: Washington Post/ABC News poll, Sept. 2010

Is a Wave Election Coming (cont.) 

16 

• Democrats currently hold a 38 seat advantage in the House. 

In mid-term elections during the President’s first term, his 

party almost always loses seats. This year will be no 

exception, and the Republicans are well-positioned to pick 

up enough seats to take back the House. 

• In the Senate, the Democrats are in a better position to 

keep their majority, but are still likely to lose 6 to 8 seats, 

giving them a very thin working majority. 

• Candidates such as Christine O’Donnell (DE) and Joe 

Miller (AK) are making a Republican Senate takeover more 

difficult, but not impossible.

Most Vulnerable Senate Incumbents 

17 

• Sen. Blanche Lincoln (D-AR) – Lincoln sits atop the list of 

Democrats who appear to be on their way out. Recent polling shows 

her trailing by anywhere between 10 and 25 points to Republican 

Rep. John Boozman. Lincoln has been a strong natural gas industry 

supporter and her loss will be costly. 

• Sen. Michael Bennet (D-CO) – Recent polling shows Bennet 

narrowly leading his opponent, but the race is within the margin of 

error. Bennet appears to suffer from the fact that he was appointed, 

rather than elected, when former Sen. Ken Salazar resigned to 

become Interior Secretary. 

• Sen. Harry Reid (D-NV) – The Majority Leader finds himself in a 

much closer than expected race, mainly due to an anti-Washington 

sentiment among his constituents, and the fact that his role as the 

Democratic leader prevents him from taking more centrist 

positions. Recent polls show his race with Tea Party candidate 

Sharron Angle a statistical tie, as both candidates are highly 

unpopular and gaffe prone.

Most Vulnerable Senate Incumbents (cont.) 

• Sen. Barbara Boxer (D-CA) – California’s economic crisis and an 

anti-incumbent mentality are providing Sen. Boxer with her 

toughest race in years. Former Hewlett Packard CEO Carly 

Fiorina has name recognition and the ability to raise money 

which has made this a top tier race. Recent polls show Boxer 

ahead by 5 to 7%, but the race is likely to stay tight. 

• Sen. Russ Feingold (D-WI) – The three term incumbent from 

Wisconsin is trailing in his race, by as much as 12% according to 

recent polls. His support of the stimulus package and health care 

reform are exposing him to charges of excessive spending. This 

close race is the most surprising. 

• Sen. Patty Murray (D-WA) – Recent polls have this race too 

close to call. Murray is a senior member of the Democratic 

leadership which is harming her in a race against a well funded 

Washington outsider in an anti-incumbent year. 

18

What If…How Political Changes Could Impact 

the Natural Gas Industry 

19 

• If Republicans take the Senate, Sen. McConnell (KY) would be 

Majority Leader. Should the Democrats keep their majority, but 

Sen. Reid lose his race, Sen. Durbin (IL) or Sen. Schumer (NY) are 

likely replacements as Majority Leader. 

• Sen. Murkowski’s primary loss and subsequent write-in campaign 

have placed her ranking member roll on the Senate Energy 

Committee in doubt. If she loses, Sen. Richard Burr (R-NC) is likely 

to take her place. His positions on natural gas are largely unknown, 

but he is likely to focus on nuclear issues primarily. 

• The Senate Environment Committee would be led by Sen. Inhofe 

(R-OK) if the Republicans capture the Senate. If Sen. Boxer loses 

her race, Sen. Carper (D-DE) would take her place. He is more 

moderate and has a reputation for bipartisan work.

What If…How Political Changes Could 

Impact the Natural Gas Industry 

• If the Republicans take back the House, current Minority Leader John 

Boehner (OH) would become Speaker. 

• On the Energy and Commerce Committee, Rep. Fred Upton (MI) is 

likely to replace Joe Barton as either ranking member or Chairman. 

Upton has a good understanding of the natural gas industry and is a 

strong supporter. 

• Current Energy and Commerce Committee Chairman Henry Waxman 

(CA) would likely become the ranking member. 

• No changes to the Natural Resources Committee leadership are 

expected; chair would switch to Rep. Doc Hastings (R-WA) if the 

Republicans take back the House. 

20 

• House Transportation Committee (pipeline safety issues) would be led 

by Rep. John Mica (FL) in a Republican House; Rep. Jim Oberstar 

(MN) would remain the senior Democrat.

Dave Roberts 

21 

MANAGER, 

REGULATORY AFFAIRS

Recent Tariff Filings 

22 

FERC 

Docket No. Filing Type Filed Approved 

• RP10-514 Miscellaneous Tariff Filing 3/26/10 4/29/10 

• RP 10-636 Updated System Maps 4/26/10 5/27/10 

• RP10-796 eTariff Baseline Filing 6/1/10 7/27/10 

• RP10-1040 Third Party Storage Providers 8/2/10 8/31/10 

(Deferral) 

• RP10-1176 NAESB Version 1.9 Standards 9/1/10 ______

Upcoming Tariff Filings 

23 

Misc. Tariff Filing 

• Receipt point pressure commitments 

• Waiver of minor interest charges 

• Remove outdated language regarding imbalances related to MSQ 

• Update of various line segment numbers 

New Date for Fuel Filing 

• Current fuel rates will continue until April 1, 2011. 

• Fuel filing is required no later than March 1.

Elk City Storage Expansion Update 

Docket No. CP10-2 

FERC Order issued May 20, 2010 allows for: 

24 

• installation and operation of new compressor 

• increases field’s working gas capacity by 2.6 Bcf 

• increases field’s deliverability by 40,000 Mcf/day 

• allows for market-based rates 

• requires separate accounting to ensure no cross-subsidization 

• authorized 0.7 Bcf of ISS service until expansion capacity is available 

• credit 1.9 Bcf of gas to existing customers as of April 1, 2011 (MSQ)

Elk City Storage Expansion Update 

Docket No. CP10-2 

FERC Order issued May 20, 2010 disallowed: 

25 

• the conversion of 1.4 Bcf of base gas to working gas 

SSC filed an Amended Application requesting the 1.4 Bcf conversion and 

the rights to the proceeds from the sale of the base gas. 

FERC’s decision pending.

Doug Field 

26 

MANAGER, 

COMPLIANCE

Update on Non-Conforming Contracts 

• FERC’s October 22, 2008 Audit Order (Docket PA08-1) required 

Southern Star to address its non-conforming service agreements 

◦ Many customers were asked to sign amendments to conform their 

contracts with the pro forma agreements in the tariff 

◦ Southern Star made the necessary compliance filings 

Quarterly Reports 

March 20, 2009 Master List of Contracts 

September 28 Update of Master List 

• On August 17, 2010 FERC issued letter order in Docket RP09- 

1090 accepting the filing of Southern Star’s service agreements 

“in satisfactory compliance” with the 2008 Audit Order. 

27

Update on Non-Conforming Contracts 

• FERC’s October 22, 2008 Audit Order (Docket PA08-1) required 

Southern Star to address its non-conforming service agreements 

◦ Many customers were asked to sign amendments to conform their 

contracts with the pro forma agreements in the tariff 

◦ Southern Star made the necessary compliance filings 

Quarterly Reports 

March 20, 2009 Master List of Contracts 

September 28 Update of Master List 

• On August 17, 2010 FERC issued letter order in Docket RP09- 

1090 accepting the filing of Southern Star’s service agreements 

“in satisfactory compliance” with the 2008 Audit Order. 

28 

Thank you for your help bringing this issue to closure.

NAESB Version 1.9 

29 

• NAESB Version 1.9 Implementation Timeline 

◦ NOPR on Index Based Rates (IBR)for Capacity 

Release issued July 16, 2009 in RM96-1-30 

◦ NOPR on NAESB 1.9 issued November 19, 2009 in 

RM96-1-036 

◦ Order 587-U Adopting NAESB 1.9 (including IBR 

pricing for capacity release) issued 3/24/2010 

Pipeline Tariff filings due September 1, 2010 

Tariff Sheets implementing NAESB 1.9 to be 

effective November 1, 2010

Southern Star NAESB 1.9 Timeline 

• Southern Star’s Original Filing 

o Tariff Sheets filed September 1, 2010 in RP10-1176 

o Proposed effective date of October 20, 2010 

• Requesting an extension this week 

o Need for additional testing to verify that all NAESB 1.9 

changes work properly 

o Requesting up to 60 days extension to fully implement 

NAESB 1.9 

o Goal is to implement sooner rather than later 

30

Major Changes in NAESB 1.9 

31 

FERC Commissioner John Norris 

summed up NAESB 1.9 as follows: 

“This Final Rule adopts important new consensus business practice 

standards for pipelines that provide consistency in the use of rateindices 

to price capacity releases, allow new flexibility for pipeline 

shippers to redirect their natural gas, and establish more uniform 

reporting of gas quality information. … 

In particular, the new standards provide additional flexibility in receipt 

and delivery points to enable shippers, including gas-fired generators, 

to quickly and efficiently redirect gas to where it is needed.”


32 




standards for pipelines that provide consistency in the use of 

rate-indices to price capacity releases, allow new flexibility for 

pipeline shippers to redirect their natural gas, and establish more 

uniform reporting of gas quality information. … 





33 





to price capacity releases, allow new flexibility for 

pipeline shippers to redirect their natural gas, and establish 

more uniform reporting of gas quality information. … 





34 












35 











NAESB 1.9 Highlights 

• Capacity Release Changes: 

◦ New Definitions 5.2.4 and 5.2.5; 

◦ Revised Standards 5.3.1 thru 5.3.3 and 5.3.26 and New Standards 

5.3.61 thru 5.3.69 

◦ Revised Data Sets 5.4.1; 5.4.2; 5.4.3; 5.4.7; 5.4.9 and 5.4.18 

◦ These Capacity Release Changes … 

Implement index based rates (IBR) for capacity release 

Reflect the removal of the price cap for short term releases 

Standardize how AMA releases are done 

• Impact at Southern Star: 

◦ Significant revisions to all CSI screens related to capacity release 

◦ Anyone using EDI will also have to adopt new data sets 

◦ Major changes for all shippers using capacity release 

36


• Redirection of Scheduled Quantities: 

◦ New Standard 1.3.80 

◦ To the extent other scheduling requirements are met, pipelines 

should support the redirect of scheduled quantities to other receipt 

points upstream of a constraint point or delivery points 

downstream of a constraint point at any subsequent nomination 

cycle for the subject gas day, at least under the same contract, 

without requiring the quantities to be rescheduled through the 

point of constraint. 


◦ Provides more flexibility once a customer is scheduled through a 

constraint point 

37


• Gas Quality Informational Postings: 

◦ Revised Standards 4.3.90 and New Standards 4.3.95 thru 4.3.98 

◦ New 4.3.96 thru 4.3.98 do not apply to Southern Star 

◦ These Gas Quality changes require more gas quality data to be 

posted on the pipeline’s Informational Postings website 


38 

◦ Southern Star will begin posting Wobbe Index data and hydrocarbon 

dew point (HDP) 

◦ NAESB 1.9 gas quality changes only impact what the pipeline must post 

and do not directly affect shippers.


• Transactional Reports in Informational Postings: 

◦ Revised Standards 5.4.20, 5.4.21 and 5.4.22 

◦ Implement revisions to the capacity release, firm and interruptible 

transactional reports required by 18 CFR Section 284.13 that are 

posted on the pipeline’s Informational Postings website. 


39 

◦ Better reporting of transactional data. 

◦ Biggest changes will be in the capacity release transactional report. 

◦ Transactional report changes only impact what the pipeline must post 

and do not directly affect shippers.

• Nomination Changes: 


◦ Revised Standards 1.3.60 and 1.3.63 

◦ Revised Data Sets 1.4.3, 1.4.4, and 1.4.6 

◦ New Location Capacity and Location Capacity Flow Indicator 

may be used in the nomination screens and data sets where 

bidirectional points are involved. 


◦ Minimal: The new usage of the new Location Capacity data element 

is “mutually agreeable” and unlikely to be used often, if at all. 

40


• EDI and EDI Trading Partner Agreement (TPA) 

◦ Revised Principles 4.1.39 and 10.1.9(not in tariff) 

◦ Revised Definition 10.2.10 

◦ Revised Standard 10.3.10 and new Standards 10.3.26 & 10.3.27 

◦ Revised 6.3.3 (EDI Trading Partner Agreement – not in tariff) 

◦ Minor changes to the standard EDI Trading Partner Agreement. 


◦ Minimal: Only affects those who use EDI or may use EDI. 

41 

◦ The most potentially significant change is in the principles (which are 

not adopted by FERC or put in pipeline tariffs) stating that Trading 

Partners should use either the current or immediately previous 

published version of the NAESB standards.


• Informational Postings and Pipeline Websites 

◦ Revised Standards 4.3.16, 4.3.26, 4.3.29, 4.3.32, 4.3.33, 4.3.69, 

4.3.92, 4.3.94, and 4.3.99 

◦ Revisions to the organization of some pipeline postings and 

their formats on pipeline websites. 


◦ Better appearance and organization of postings on the website. 

◦ Website changes only impact what the pipeline must post and do 

not directly affect shippers. 

42


• Other Minor and Technical Revisions 

◦ Revised Data Sets 1.4.1; 1.4.2; 1.4.5; 1.4.7; 2.4.1; 2.4.2; 2.4.3; 

2.4.4; 2.4.6; 2.4.7; 2.4.8; 3.4.1; 3.4.2; 3.4.4; 5.4.14; 5.4.18; 

5.4.16; 5.4.17; and 5.4.19 

◦ New Standards 0.3.16 and 0.3.17 and New Interpretations 

7.3.56 and 7.3.57 

◦ Minor changes related to new or revised data elements or code 

values, including replacing numerous blank code value 

definitions with the parenthetical [no definition necessary]. 


◦ Forget about it 

(unless you are a worse NAESB nerd than me) 

43

Bob Bahnick 

44 

SENIOR VICE PRESIDENT, 

OPERATIONS & SUPPORT SERVICES

Meter Station Flow Computer Upgrades 

Southern Star has 1064 

measurement points on 

its system. 

• 143 Receipt Meters 

• 843 Delivery Meters 

• 58 Check Meters 

• 20 Storage Meters 

45 

Orifice Meter with 

Superflo II Flow Computer


46 

Southern Star utilizes several 

types of meters on its 

system 

• 811 Orifice Meters 

• 92 Turbine Meters 

• 190 Rotary Meters 

• 366 Positive Displacement 

• 52 Ultrasonic Meters 

All of these meters report their 

flowing information into CSI 

Positive Displacement Meter 

with AMR Flow Computer


47 

Starting in 2010, Southern Star has begun a four year 

program to upgrade flow computers and related 

communications systems. 

• 2010 = 109 targeted sites in the Wichita Operating 

District 

• 2011 – 2013 Remaining Operating Districts

Reasons for Upgrades 

48 

Many of SSCGP flow computers were installed prior to 

2000 and the technology has improved 

• Improved Reliability– Technology advancements are 

driving new product developments. 

• Metering Expandability – Faster processor speeds and 

more memory allow upgraded meters to implement new 

standards and more complex calculation routines required. 

• Standard software–SSCGP is migrating to manufacturers’ 

standard software to maintain industry standards 

compatibility.

Improved Data Communications 

Communications Networks are also being upgraded 

along with flow computer upgrades 

49 

• Changing serial radios to Ethernet radios will provide 

bi-directional communications to enhance 

communications troubleshooting and provide the 

ability to send required updates to the flow computer 

• Upgrading antennas will improve signal strength and 

be a preventive measure for reliability. 

• Replacing Hart protocol devices with Modbus 

protocol devices will allow a single communications 

network type.

New Flow Computers 

50 

CONTROL MICROSYSTEMS 

SCADAPack 42O3 

Gas Flow Computer 

This flow computer will be the predominate 

flow computer type for single and dual run 

settings. 

Thermo Fisher Scientific 

AutoPILOT PRO 

Six-Run Gas Flow Computer & 

Remote Telemetry Unit 

This flow computer will be the flow 

computer type for multi run settings with 

more than two runs or requiring on-site 

chromatographs or PLC control.

SSCGP System Facilities 

Pipe Diameter 

51


Decade of Installation 

52


High Consequence Areas 

53

16.07 

16 

29.92 

8.82 

16 

53.22 

38.42 

30 

24.71 

23.7 

48.23 

16.63 

10 

28.22 

19.50 

137.00 

10.03 

12 

351.50 

445.84 

121.56 

54 

10.03 miles of 

HCA inspected in 

2010 

12 miles of HCA 

planned in 2010 

121.6 miles of 

pipeline inspected 

in 2010 as part of 

HCA program 

500 

450 

400 

350 

300 

250 

200 

150 

100 

50 

0 

Annual Assessment Mileage 

HCA Miles 

Assessed 

HCA Miles 

Planned 

Miles of Pipeline 

Assessed 

Time Period 

Total Miles of HCA/Non‐HCA/Pipeline Assessed

55 

Program to Date 

HCA 

Assessment 

Mileage 

•137.0 miles of 

HCA inspected 

since 2004 



since 2004 

Total Miles of HCA Assessed/Planned 

150 

125 

100 

75 

50 

25 

16.516 

HCA Assessment Mileage 

HCA Miles Assessed 

HCA Assessment 

Planned 

Miles of Pipeline 

Assessed 

32 

25.4 

64.8 

62 

206.7 

85.7 

82.2 

254.1 

98.7 

95.7 

605.6 

1051.4 138.95 

137.0 

126.9 

115.20 

1173.1 

1250 

1000 

750 

500 

250 

Total Miles of Pipeline Assessed 

0 

71.7 

21.0 

2004 2005 2006 2007 2008 2009 2010 

Time Period 

0

2010 HCA Assessments 

Line Line Name HCA Pipeline 

56 

Assessment 

Type Year Status Comments 

FS Joplin Airport 16" & 20" 7406.1 22136 2010 Scheduled ILI 

FM Joplin to Lone Elm 10" 872.1 10924 2010 Completed ILI 

HM Rangeline 16" 26435.7 56244 2010 Completed ILI 

VPD 

12" to Smith 

Cogeneration 9550 61899 2010 Completed ILI 

S‐009 Ark City South 8" 17151 2010 Scheduled PT 

S‐010 Ark City South 6" 1211 2010 Scheduled PT 

S‐011 Total Refinery 6" 7540 2010 Scheduled PT 

S‐012 Baird 2" 4523.9 7604 2010 Scheduled PT 

UF Wellington 8" Tap 1143.1 1200 2010 Completed Tethered ILI 

RG 

12" to Farmland 

Industries 1291.2 66066 2010 Completed ILI 

W Arlington ‐ Cheyenne 1680.8 445991 2010 SCCDA 2011 ILI & SCCDA Mileage will be included in 2011 

XM Sedalia Loop 3409 25991 2010 Completed ILI 

XTB Lexington 889.1 9636 2010 In Progress DA 

W Schurr ‐ Hesston 1792.3 291057 2010 Scheduled ILI & SCCDA ILI Completed, SCCDA Scheduled 

DP Ottawa ‐ Welda 30" 2075.6 165780 2010 Completed SCCDA 

DT Ottawa ‐ Welda 26" 3482.7 166609 2010 Completed SCCDA 

Q Hesston ‐ Americus 2307.1 358071 2010 In Progress SCCDA 

ESA Kansas Electric Power 115 115 2010 Scheduled GWUT/Casing Removal 

XS‐002 St. Joe 8" 910.7 2010 Scheduled GWUT/Casing Removal 

VJ Oklahoma City 20" Loop 4689.4 87162 2010 Completed ILI 

R Stafford ‐ Hesston 3952.2 2010 In Progress SCCDA Pipeline Mileage Included in 2008 

Total 74845.2 1356396 Ft 

14.18 256.89 Miles

2010 HCA ILI 

57

2010 Direct Assessments 

58

HCA Future Assessments 

59 

Year Comments HCA (mi) Pipeline (mi) 

2010 14.18 256.89 

2011 17.61 373.5 

2012 3.27 11.3 

2004‐2009 Total Assessed Miles 126.95 1051.42 

Assessed by 2012 162.01 1693.11

60 

Program to Date 

Non- HCA 

Assessment 

Mileage 


Non-HCA pipeline 

inspected in 2010 



since 2009 

Total Miles of Non - HCA Assessed/Planned 

500 

450 

400 

350 

300 

250 

200 

150 

Non - HCA Assessment Mileage 

717.3 

414.1 

Non - HCA Miles Assessed 

Non - HCA Assessment Planned 

Miles of Non-HCA Pipeline Assessed 

750 

500 

250 

Total Miles of Non - HCA Pipeline Assessed 

100 

50 

0 

12/31/2009 8/31/2010 

0 

Time Period

2010 non-HCA Assessments 

61 

Line Line Name Pipeline 

Assessment 

Type Year Status Comments 

EU, EU‐3 & EU‐4 Soldiers Home 6" 27782 DA 2010 Completed 

W Ogallah to Otis 233684 ILI 2010 Completed 

N MRL to Blackwell 301956 ILI 2010 Completed 

DS Ottawa ‐ Welda 20" 166114 ILI 2010 Completed 

W Riner ‐ Arlington 403479 ILI 2010 Completed 

N Alva ‐ MRL 89039 ILI 2010 Completed 

DB Elk City 26" 87118 ILI 2010 Completed 

DV Colony Storage 26" 34176 ILI 2010 Completed 

DQ South Welda 26" 11032 ILI 2010 Completed 

W Hoxie to Ogallah 245989 ILI 2010 

Completed 

DB Elk City 62741 PT 2010 In Progress 

Total 

1663110 Ft 

314.98 Miles

2010 Non-HCA Integrity Testing 

62

Elk City Storage Field Pressure Test 

63

Gary Hines 

64 

MANAGER, 

GAS MANAGEMENT

Topics of the Day 

• CSI Gas Quality Report Changes 

• Operationally Available Capacity Reports 

• SSC Daily Operational Status Report 

• Planned Service Outages (Maintenance) 

• Pipeline Integrity Constraints & Timing 

65

CSI Gas Quality Report Changes 

• Updates for NAESB 1.9 Changes 

◦ Adding “Wobbe” Index 

◦ Adding Hydrocarbon Dewpoint (HCDP) 

• Rearranging data – more logical 

• Changes under Discussion, GHG Reporting 

Requirements 

◦ Molecular Weight 

◦ Carbon Content 

66

Operationally Available Capacity Reports 

• Currently Two Reports Available 

◦ CSI028 – Available Capacity By Segment 

◦ CSI035 – Available Capacity By Location 

• Integration of Two Reports to One 

◦ CSI035 – Available Capacity By Location 

Two additional Location Types Added 

Mainline (Compressor Station Constraints) 

Pipeline Segment (Pipeline Segment Constraints) 

Report Searchable by Location Type 

67

SSC Daily Operational Status Report 

• CSI028 – Daily Operational Status Report 

◦ Non-NAESB, Customer Driven 

• Information To Provide 

◦ System Constraints 

Pipeline 

Compressor Station 

◦ Physical Storage Inventory (EIA Reported) 

◦ Availability of Services 

◦ Other Information 

• Potential To Develop CSI Distribution List 

◦ Daily Distribution Early AM 

68

Planned Service Outages (Maintenance) 

• Semi-Monthly CSI Postings 

• Emailed to “PSO” Distribution List Members 

◦ Available if not currently being received 

• Remaining 2010 Maintenance 

◦ October 26 th through the 28 th – Hesston Station Constraint 

Pipeline Integrity Work 

Affects LS130 (KH), LS490 (RH), LS140 (Hesston-Ottawa) 

CSI Posting #3596 

◦ November 8 th through the 12 th – Edmond Station Constraint 

Compressor Station Maintenance 

Affects LS340, LS 385, LS390, and portions of LS400 

• South of Edmond 

69

Planned Service Outages (Maintenance) 

• Remaining 2010 Maintenance – Cont’d 

70 

◦ Pipeline Integrity work 

LS250 – St. Joe 

Pipeline Pigging Activities 

LS490 – Rawlins Hesston 

Awaiting in-line inspection final reports

Pipeline Integrity Constraints & Timing 

71 

• Typical Planning Process for In-Line Inspection (ILI) Tool (“Pipeline 

Pig”) Runs 

1. Determine runs based on regulatory requirements (initial, follow up risk 

based, etc.) 

2. Prioritize runs with Gas Control, Operations, Engineering staff 

3. Provide proposed schedule to ILI tool vendor 

4. Revisit prioritization based on tool availability 

5. Determine what impacts to customers there might be based on proposed 

tool runs 

6. Determine capacity constraints to run tools (tool specific) 

7. Commercial Services/Gas Control to post tool run schedules when capacity 

limitations are required 

8. Inevitably, some ILI tools travel across country boundaries and get stuck in 

International Customs – Loop back to Step 3

Pipeline Integrity Tools 

• ILI Tools Available 

◦ Multiple tools now available for different integrity needs 

 

 

 

 

 

 

 

 

Geometric – XYZ Mapping utilizing inertial navigation units 

CDP – Corrosion Detection Pig 

AFD – Axial (along the direction of the tool) Flaw Detection 

EMAT – Electro-Magnetic Acoustic Transducer 

Stress Corrosion Cracking (SCC) 

Disbonded Coating 

Combination Tools 

Not available for all tools listed above 

◦ Some are speed (flow) dependent to establish best results 

◦ Multiple tool runs may be required if they cannot be combined in to one 

tool 

 

72 

Results in potentially longer period of time for constraints

Pipeline Integrity Timing 

• Run ILI Tools 

◦ Run Geometry & Gage Tools 

 

Determines ability for ILI “smart” tools to pass through the pipeline 

◦ Run ILI Tool(s) 

 

 

One to many days depending on integrity data needs 

Data check after each tool run 

• Receive Preliminary Report Data 

◦ Typically 30-45 Days from tool run date(s) 

◦ Initial determination of integrity issues to be resolved 

◦ “Non-certified” results from vendor 

• Receive Final Report Data 

73 

◦ Typically 60-90 Days from tool run date(s) 

◦ “Certified” results from vendor 

◦ Starts a clock for required repairs

Pipeline Integrity Timing – Cont’d 

• Immediate Conditions 

◦ Anomalies meeting certain criteria found in High Consequence Areas 

(HCAs) or based on the discretion of Pipeline Compliance and Design 

Engineering 

Option I: Make required repairs within 5 days of receipt of Final Report 

Option II: Reduce operating pressure by 20% of highest operating pressure since 

tool run 

Potentially requires capacity reduction if pipeline runs at a high load factor 

Pressure reduction required until anomaly is repaired 

• Other Conditions 

◦ One Year Conditions 

◦ Monitored Conditions 

◦ Scheduled Conditions 

74

Pipeline Integrity Timing – Cont’d 

• Timing Is Everything 

◦ Tool Run Dates 

◦ Preliminary Tool Run Results 

◦ Final Tool Run Results 

◦ Balanced Needs Approach for Internal & External Parties 

• Murphy’s Law 

◦ Inevitable It Seems 

◦ Reducing His Odds 

• Ensuring a Safe, Reliable, & Efficient Pipeline 

System!! 

75

David Bristow 

76 

MANAGER, 

SCHEDULING & BILLING

Curtailment Through Pools– Current State 

77 

• Rights are pushed up from the take-away 

transportation agreement(s) 

• Once into pool transactions, rights are determined 

by pro rata calculations and are traced through 

pool(s) to determine initial receipt to be cut 

• These calculations limit shipper control of cuts 

• If curtailment routine fails, curtailment can’t be done 

manually within the cycle timeline constraints 

• Difficult to precisely state how reductions were made 

due to complex programming calculations

Curtailment Through Pools – Possible State 

• Under the curtailment process being considered, a 

shipper will indicate how the rights are pushed up 

within contractual terms 

• Will require additional piece of information on 

nomination – utilizing the Package ID field 

• Ranking will be as important as ever – 

differentiation will be enhance efficiency 

• Cuts can be made manually if curtailment routine 

fails 

78

Curtailment Through Pools - Possible State 

79 

• For the shipper that uses only their own pooling 

agreement(s), indicating the rank will not change the 

way a cut will work 

• When cuts are made, the rankings will provide a 

clearer route to take the curtailment back to the takeaway 

agreement(s) 

• Representatives can explain reductions to curtailed 

shipper

Ranking 

80 

it’s the new black

Jim Neukam 

81 

MANAGER, 

BUSINESS DEVELOPMENT

BD Responsibilities 

• Gas Supply & Interconnects 

◦ Identify, evaluate, and pursue gas supply opportunities 

◦ Manage Customer Interconnect Process 

◦ Research and assess gas supply studies to ensure 

adequate gas supply 

◦ Update CSI Gas Supplier Listing 

82 

82

Gas Supplies –2010 Incremental Volumes 

83 

Location Name Location Line Segment 

County/State 

Design 

dth/d 

In-Service 

Mustang Gas Products 16955 

Edmond 

Superior Pipeline – 

Ford Co. 

IACX Energy – 

East Newkirk 

16956 

Hugoton 

16968 

Blackwell 

Noble Energy - Lilli 16967 

Rawlins 

405 – Garfield, OK 10,000 March 2010 

130 – Ford, KS 50,000 July 2010 

335 – Kay, OK 750 August 2010 

490 – Weld, CO 12,000 October 2010 

Currently there are four other projects being assessed as viable new 

supply points. 

83

CSI Gas Supplier Listing 

84 

Contact – 

Robbie Clark 

270-852-4577 

Or 

Edie Murdoch 

270-852-4557

BD Responsibilities (Cont’d) 

85 

• Growth Opportunities 

◦ Identify, evaluate, and pursue new opportunities and 

incremental markets 

◦ Collaborate with Customers on creative business 

opportunities 

◦ Research gas industry projects and competitive business 

initiatives 

◦ Oversee projects in compliance with regulations and 

contractual obligations 

85

Growth Opportunities 

86 

• Access additional 

Gas Supply from 

the Rockies 

Production 

◦ Niobrara Shale 

◦ Niobrara Chalk 

WYOMING 

Niobrara 

Shale 

NEBRASKA 

Niobrara 

Chalk 

COLORADO 

KANSAS 

86


87 

• Access Gas 

Supply from the 

New Developing 

Production in 

Oklahoma & 

Texas – 

◦ Cana Woodford 

Shale 

◦ Granite Wash 

◦ Cleveland, 

Tonkawa, & 

Mississippian 

TEXAS 

OKLAHOMA 

Cleveland, Tonkawa & 

Mississippian Plays 

Granite Wash Play 

Cana 

Woodford 

Shale Play 

87


88 

• Opportunities 

for New Flow 

Paths – Hub 

Services 

◦ NNG Kiowa 

Delivery 

◦ WIC Riner 

Delivery 

◦ Additional 

Oklahoma 

Receipts & 

Deliveries 

88


• Gas Storage Expansion – Evaluate Additional 

Opportunities 

89 

• Incremental Firm Deliveries – Evaluate Additional 

Opportunities 

89

Matt McCoy 

90 

SUPERVISOR, 

GAS CONTROL

Customer Satisfaction 

91 

• Thank You for taking the time to provide us with 

such valuable feedback!!! 

• “To be the best pipeline in North America” 

• 2 Surveys: 

• Energy Insights 

• Provides Southern Star with the in-depth customized 

feedback we use to enhance our service offerings to you 

• New Internet Module 

• Mastio 

• Industry wide survey that gives Southern Star the “big 

picture” view and how we compare to other similar pipelines 

being measured against the same metrics

Energy Insights – 2010 Survey 

• Gas Supply on Southern Star 

• 85% of Supply Received is Direct Connected 

• Williams Partners Echo Springs, BP Jayhawk, Enbridge 

Hobart, etc. 

• There are many exciting opportunities! 

92 

• Capacity Release 

• Focus Group to help post NAESB 1.9

Mastio – 5 Most Important Attributes 

93 

2008 2009 

#1 Reliable gas transportation. #1 Reliable gas transportation. 

#2 Accurate scheduled gas volumes. #2 Accurate scheduled gas volumes. 

#3 Accuracy of gas metering systems. #3 Honest, forthright communications. 

#4 Honest, forthright communications. #4 Accuracy of gas metering systems. 

#5 Representatives are accessible. #5 Representatives are accessible. 

SSCGP’s Performance 

Attribute 2008 Score 2008 Rank 2009 Score 2009 Rank 

Reliable gas transportation. 9.36 1 9.33 1 

Accurate scheduled gas volumes. 8.93 4 8.98 2 

Honest, forthright communications. 8.67 1 9 1 

Accuracy of gas metering systems. 8.82 1 8.96 2 

Representatives are accessible. 8.41 5 8.88 2

CSI Enhancements – “Contact Us” 

94

CSI Enhancements – “Help & FAQ’s” 

95

CSI Enhancements – “Favorite 10 Reports” 

96

Philip Rullman 

97 

DIRECTOR, 

COMMERCIAL SERVICES

Southern Star Central Vision 

“To be the best pipeline in North America” 

98 

◦ Safe, Reliable, Efficient Operations 

◦ Exceptional Customer Service 

◦ Maximized Shareholder Value 

◦ Workforce Excellence

Our Goal – “We want to get better” 

99 

Feedback Time 

Customer Meetings 

Do we meet or Exceed your 

Expectations 

Meeting Format 

Do you like this format 

Information 

Is the Material Relevant 

What can we do Better

Southern Star Central Gas Pipeline, Inc

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