TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

BRIEF DESCRIPTION OF CHANGE

This procedure was revised to add feedback from use and alignment to the new TransCanada risk
management process.

REVISION HISTORY
The Revision History table captures a high level summary of the five most recent versions (Rev. No.) of
this document and the signoffs obtained for each revision.
Revision History
Rev. Date Revision Status Brief Description of Change History Originator Reviewer(s) Approver(s)
No. (YYYY-MMM-DD) History (Note 2) (By) (Checkers)
(Note 1)

Andrew
Melanie Neil Singleton Radtke
00 2013-Mar-21 Issued for Use This is a new procedure.
Wilson Antonio Cordito Stephen
Nowaczewski
Addition of reference to the new risk management
framework and process.
Addition of required verification of the risk ranking
assigned in PHA.
Change of mandated use of the CS&E risk matrix to
allow for flexibility in choosing a risk matrix that fits the
PHA scope. The Integrated Risk Assessment Process
(IRAP) methodology identified in the Risk Management
Process (EDMS #008717335) shall be used. Andrew
Deletion of construction activity from the Purpose Melanie Radtke
01 2014-Jul-22 Issued for Use Neil Singleton
section of the PHA Procedure. Construction activity is Wilson Stephen
addressed by the Safety Management Plan and should Nowaczewski
not be dealt with using the PHA process (dual completion
of tasks).
The requirement to complete a final PHA Report has
been deleted and replaced with the requirement to
compile a PHA Risk Register.
PHA Risk Registers will be owned by the entities
that own the destination Line of Business and Regional
Risk Registers after project completion.

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

Table of Contents
1 INTRODUCTION ................................................................................................................................. 4
1.1 Purpose................................................................................................................................ 4
1.2 Scope................................................................................................................................... 4
2 REFERENCES ...................................................................................................................................... 5
2.1 Regulations, Codes and Standards ...................................................................................... 5
2.2 Industry Publications and References ................................................................................. 5
2.3 Internal TransCanada References ....................................................................................... 5
3 DEFINITIONS AND ABBREVIATIONS ........................................................................................... 6
4 PHA PROCEDURE DESCRIPTION .................................................................................................. 8
4.1 PHA Planning ..................................................................................................................... 8
4.2 PHA Execution ................................................................................................................... 9
4.3 PHA Risk Ranking Verification ......................................................................................... 9
4.4 PHA Closeout ..................................................................................................................... 9
5 PROCESS HAZARD ANALYSIS FLOWCHART .......................................................................... 11

List of Appendices
APPENDIX A PHA REQUIRED CRITERIA ............................................................................... 13
APPENDIX B PHA REPORT TABLE OF CONTENTS ............................................................. 14

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

1 INTRODUCTION
1.1 Purpose
Process Hazard Analysis (PHA) is a systematic method employed to identify and evaluate
potential process hazards and provide recommendations to address process safety. Process Safety
generally refers to a disciplined framework for managing the integrity of hazardous operating
systems and processes by applying good design principles, engineering and operating and
maintenance practices.
The PHA procedure focuses on mitigating identified process hazards in the design, and operation
of TransCanada assets, as part of our Asset Management System. PHA addresses equipment,
instrumentation, utilities, human factors, and external factors that have the potential to impact the
process being analyzed.
PHA is conducted using a variety of evaluation techniques or methodologies. The range of PHA
methodologies allows flexibility, as there is not always any one best methodology for a specific
process or operation. The selected PHA method must be appropriate to the
purpose/scope/objective of the work, relative risks (type of process, type of operation, size and
complexity), the results required, the type of information available, and the development phase of
the work to be completed. This procedure will provide a guideline of the methods available and
appropriate usage in the types of work performed by TransCanada.
1.2 Scope
This PHA procedure applies to all assets which are wholly owned and operated by TransCanada
as well as all Partially Owned Entities and/or Joint Ventures where TransCanada has operational
control except for Bruce Power.
TransCanada should influence the application of this Procedure to 3rd party operated facilities
that are fully owned.
This procedure applies to any project that develops new or changed processes that impact process
safety. This procedure will also apply to existing facilities as required by TransCanada policies or
programs.
Process safety risk deal with hazards associated with leaks and spills of process fluid, equipment
malfunction, excessive pressure and temperature (high or low), corrosion, metal fatigue, etc.
which could result in harm to people, environment, operating assets or company reputation.
Applicable risks identified in a PHA are used as an input to a Health, Safety and Environment
(HSE) management system under the safety element.
Risks associated with occupational safety HSE pertain largely to other types of incidents that
cause harm to people such as slips, falls, missing PPE, motor vehicle collisions, etc.
Project risk in the context of the Capital Project Management System (CPMS) addresses financial
and schedule risk on major projects and is not associated with risk pertaining to personnel or the
environment due to daily operations.

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

PHA is required for:

New facility development,
Modification(s) resulting in change of form, fit, function (if deemed necessary during the
MOC process), or
Asset operability issues and
Any other situation where process safety concerns are apparent.
A PHA is not required for:
Routine preventative maintenance activities (not a project as defined in this procedure)
Change that does not affect form, fit, function such as replacement in kind (as defined in the
O&E Technical and Physical Change Procedure (EDMS No. 007728761) or falls outside of
the criteria listed in Appendix A.
Notes:
Projects completed by third party engineering contractors (3PEC) will use this PHA
procedure.
Special PHA planning consideration at initial project scoping is required for projects
implemented in phases that require interim operations. For example, a project that installs
tie-ins for a new piece of equipment, and then operates the system before installing the
equipment might need two HAZOPS, one on the interim operations and one on the final stage
of operations.

2 REFERENCES
2.1 Regulations, Codes and Standards
Regulations, Codes and Standards
Regulatory requirements, codes and standards related to process safety are project specific.

2.2 Industry Publications and References

Industry Publications and References
Center for Chemical Process Safety (CCPS); Guidelines for Risk Based Process Safety; 2007.

William Bridges, Process Improvement Institute, Inc., Selection of Hazard Evaluation

Techniques.

2.3 Internal TransCanada References

Internal TransCanada References
Reference Number Document Title (EDMS Item No.)
Asset Management System Framework (EDMS No. 004102169)

AMS Program Registry (EDMS No. 008489835)

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

Capital Projects Management System (CPMS) Manage Project Design (EDMS No. 006740639)

O&E Technical and Physical Change Procedure (EDMS No. 007728761)

Process Hazard Analysis (PHA) Action Item Resolution Procedure (EDMS No. 007772695)

Process Hazard Analysis (PHA) Methods Procedure (EDMS No. 007772701)

Process Hazard Analysis (PHA) Plan Template (EDMS No. 007772704)

Pre Safety Startup Safety Review (PSSR) Procedure (EDMS No. 006688895)

Risk Management Framework (EDMS #008749510)

Risk Management Process (EDMS #008717335)

Risk Register Process (EDMS #008718149)

IRAP Consequence Matrix (EDMS # 005614645)

3 DEFINITIONS AND ABBREVIATIONS

Definitions and Abbreviations
Term / Abbreviation Definition / Description
3PEC Third Party Engineering Contractor
Administrative Administrative controls (also called procedural controls) consist of approved written
Controls policies, procedures, standards and guidelines.
ALARP As Low As Reasonably Practicable
CEI Chemical Exposure Index
CPMS Capital Projects Management System, refer to EDMS No. 006740639)
CS&E Community, Safety and Environment
As a role in the PHA procedure workflow, any individual, team or group, regardless of title
or organizational role, responsible for the analysis, design or development of engineering
Engineering
documents or work products in support of PHA. Engineering may represent the design
viewpoint and/or other technical expertise to support the PHA method(s).
The process of elevating a concern to a higher level of budget capability, technical
Escalation
expertise and/or jurisdictional authority in order to achieve resolution.
ETA Event Tree Analysis
F&EI Fire and Explosion Index
As a role in the PHA procedure workflow, the individual, team or third party responsible for
Facilitator training, coaching or facilitating PHA project team members on the specific applicability
and execution of PHA methods.
FMEA Failure Modes and Effects Analysis
FTA Fault Tree Analysis
GPMC General Plant and Maintenance Capital

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

Definitions and Abbreviations

Term / Abbreviation Definition / Description
HAZID Hazard and Identification Analysis
HAZOP Hazard and Operability Analysis
HRA Human Reliability Analysis
HSE Health, Safety and Environment
LOPA Layer of Protection Analysis
MOC Management of Change
As a role in the PHA procedure workflow, any individual, team or group, regardless of title
or organizational role, responsible for the operations and maintenance of any asset
Operations
impacted by a PHA project. Operations include individuals or teams representing the end
user of the asset.
O&E Operations & Engineering
PEP Project Execution Plan
PHA Process Hazard Analysis
A specific, defined methodology for identifying and evaluating process hazards. These
include but are not limited to:
Hazard Identification (HAZID),
Hazard and Operability Study (HAZOP),
What If Analysis,
Checklist Based Analysis,
Safety Risk Matrix Analysis,
PHA Method Layer of Protection Analysis (LOPA),
Safety Integrity Level (SIL) analysis,
Failure Mode Effects Analysis (FMEA),
Fault Tree Analysis (FTA),
Event Tree Analysis (ETA), or
Quantitative Risk Assessment (QRA)
Refer to Process Hazard Analysis (PHA) Methods Procedure (EDMS No. 007772701) for
more detailed descriptions
PPE Personal Protection Equipment
PreHA Preliminary Hazard Analysis
Process safety refers to a disciplined framework for managing the integrity of hazardous
Process Safety operating systems and processes by applying good design principles, engineering and
operating and maintenance practices.
Project Any endeavor within TransCanada to create, design, build or modify operational assets.
As a role in the PHA procedure workflow, the individual, team, group or third party,
Project Manager regardless of title or organizational role, responsible for the planning, executing,
monitoring, controlling and closeout of PHA.
Pre-Startup Safety Review (refer to Pre Startup Safety Review (PSSR) Procedure (EDMS
PSSR
No. 006688895)
P&ID Process and Instrumentation Drawing

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

Definitions and Abbreviations

Term / Abbreviation Definition / Description
QRA Quantitative Risk Assessment
SILA Safety Integrity Level Analysis
SME Subject Matter Expert
A TransCanada Operating Procedure (TOP) is a document that helps mitigate risks during
TOP operation and maintenance of TransCanada facilities and equipment to protect people,
equipment, processes and/or the environment.

4 PHA PROCEDURE DESCRIPTION

The PHA procedure is an integral part of the overall design process as it applies to the project,
outlines in the PHA procedure flowchart in section 5.
4.1 PHA Planning
Planning information for the PHA must be captured using the Process Hazard Analysis (PHA)
Plan Template (EDMS No. 007772704). If PHA is not required on a project this decision must
be captured in project documentation, such as a Project Execution Plan (PEP) or Decision
Summary, or it may be a standalone document. See Appendix A for more information on criteria
to determine if PHA is required on a project.
PHA planning requires the involvement of the project team including project management,
engineering (internal and/or 3PEC), operations and process safety Subject Matter Experts (SME).
PHA is to be conducted in conjunction with the plan development for the related design phases of
the project, and to align with the iterative nature of the project design cycle. Depending on the
nature of the project, multiple PHA methods may be selected to address the process safety issues
of the project. The PHA Plan may be developed iteratively to address successive PHA method
execution activities. For example, a Hazard Identification Analysis (HAZID) may be followed by
a Hazards and Operability Analysis (HAZOP) based on the phase and scope of a project; the
project team may identify the need to conduct a Safety Integrity Level Analysis (SILA) based on
high risk ranking found in the HAZOP.
Third Party Engineering
The engineering work associated with the larger project may involve the engagement of a 3PEC.
In this case the 3PEC has responsibility for the PHA(s) in their scope, they are required to use this
procedure and supporting documents to perform, manage and execute PHA tasks. This will
include direction to select a TransCanada approved facilitator.
Criteria to Determine PHA Requirement
The initial decision during PHA planning is to determine if a PHA is required. If PHA is required,
the scope of the PHA activities for the project is influenced by the type and magnitude of the
larger project. If it is determined that a PHA is not required, it is critical that this decision be
documented and reviewed by the appropriate stakeholders. This evidence can be contained in a
Project Execution Plan (PEP), Decision Summary or other project documentation.
PHA Method Selection
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Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

Process safety SMEs and the project stakeholders can provide technical guidance on selection of
appropriate PHA methods.
4.2 PHA Execution
For each PHA session executed by the project, a list of identified hazards will be produced and
where applicable a set of recommended actions. Each identified hazard may be evaluated using
the Risk Assessment Screening Matrix based on the IRAP Consequence Matrix 2014 to address
the consequences of the associated hazard by:
Eliminating the hazard through a design change,
Reducing the hazard by defining administrative controls, or
Accepting the hazard.

Contact the Process Safety SMEs for more risk matrix information. More detail pertaining to
required PHA action item resolution is in the PHA Action Item Resolution Procedure (EDMS No.
007772695).
4.3 PHA Risk Ranking Verification
For PHAs that include risk ranking, probability estimates will be verified with quantitative data to
ensure that these values are reflective of actual failure data as per the Risk Management Process
(EDMS #008717335).
4.4 PHA Closeout
At the conclusion of the project design cycle and all planned PHA activities the following outputs
will have been created:
A PHA Report or set of individual PHA reports developed during the execution of each PHA
during the project and,
A PHA Risk Register
Note: All resulting PHA Risk Registers must be added to the appropriate Line of Business and
Regional Risk Registers as per the Risk Management Process (EDMS #008717335) and the Risk
Register Process (EDMS #008718149).
Note: See Appendix B for PHA Report Requirements
The PHA Risk Register will be used as input to the Pre-Startup Safety Review (PSSR) process
(EDMS No. 006688895), the project turnover process, the project lessons learned process, and
other processes.

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

PHA Risk Register PTM Escalation

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-22

5 PROCESS HAZARD ANALYSIS FLOWCHART

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-22

APPENDICES

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

APPENDIX A PHA REQUIRED CRITERIA

PHA Required Criteria

Is this a greenfield project using a non-standard engineering design?
If this is a standard engineering design project is there an existing PHA that can be referenced? Are there any
gaps between the standard design of the reference PHA and the standard design used for the project?
Will the project change any existing process parameters? i.e. pressure, temperature, flow, etc.
Will the project require new or altered operating/maintenance procedures?
Will the project involve siting changes to processes/systems (additional structures, building relocation, etc.)?
Will the project require that hazardous chemicals be stored at site?
Will the project require that any safety systems modifications or a new system installation?

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 TransCanada Procedure

Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

APPENDIX B PHA REPORT TABLE OF CONTENTS

Executive Summary
Include a brief description of the project, the Process Hazard Analysis (PHA) methodology and
results.

Purpose
Reiterate from the PHA Plan developed for this project.

Objective
Reiterate from the PHA Plan.

Project Description
Reiterate from the PHA Plan.

Scope of Study
Reiterate from the PHA Plan with any amendments from the study.

Participants
Include a listing of attendance including hours attended by each individual.

Methodology
Reiterate from the PHA Plan with any amendments from the study.

Risk Matrix
Include the risk matrix used for the PHA.

Assumptions
List assumptions used in the PHA.

PHA Discussion/Database
Include all information gathered in the PHA. This will be in the form of a database, worksheets,
etc.

Action Items
Include the list of action items.

Identitied Risk Summary

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Process Hazard Analysis Procedure (CDN-US-MEX)

EDMS No: 007772703 Rev.: 01 Status: Issued For Use Effective Date: 2014-Jul-24

Include a discussion of all risk ranked hazards identified. This discussion is to contain a
weighting of each risk category and include recommended mitigations.

Further Studies Recommended

Include a list of any required risk consequence studies.

Comments & Concerns

Miscellaneous section, if required.

Parking Lot
Include the PHA Parking Lot if required.

Documents and Reference Drawings

Include a scan of the master noded, red lined Process & Instrumentation Diagrams (P&ID) and
any other documents used in the study.

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