1. 1 Valero Benicia’s Mechanical Integrity Program Karen Muehlbauer Mechanical Reliability Manager Thursday, March 27, 2014

2. Mechanical Integrity 2 The objective of the mechanical integrity (MI) program is to prevent a “loss of containment.” -A loss of containment can result in personnel exposure, fire, equipment damage, or environmental impact. -MI is a structured system for inspection, testing and preventative maintenance (ITPM) of refinery facilities. This system is essential to preserve the mechanical integrity of the equipment and provide an operation which meets high standards of safety, health, and environmental performance. -MI applies to existing facilities, new construction, modifications to existing facilities, and replacement-in-kind repairs.

3. Mechanical Integrity 3 -The Mechanical Integrity program addresses inspection, testing, and preventative maintenance (ITPM) in the following areas: Piping Fixed EquipmentRelief Systems Valves Rotating Equipment Vent Systems Electrical InstrumentationControls Alarms Interlocks Monitoring Devices Emergency Shutdown Systems

4. History and Benefits of RBI 4 Benicia utilizes a Risk Based Inspection Program (RBI) in accordance with API RP 580/581 Program Development:  Benicia has a strong RBI heritage (approved program since 2003)  November 2011 initiated plant wide roll-out: 3 rd Party asset management company (Pinnacle) Inspection Data Management System (PCMS) Consistent approach across the VLO circuit

5. History and Benefits of RBI 5 Risk Based Inspection Program (RBI) (Cont.) Benefits of a Comprehensive RBI Program:  Insures that inspection resources are focused in the areas of highest risk: Defined Inspection Plans Damage Mechanism Specific Defined Inspection Effectiveness/Inspection Credit Other benefits:  Drives appropriate and timely equipment replacements and upgrades  Drives the T/A Risk Based Work Selection process  Generates Corrosion Model Diagram (CMD), Material Operating Envelope (MOE) limits

6. Mechanical Integrity 6 Stream Data – Process Eng - AspenTech: Hysys Model - Confirmed through sampling Materials Review - Review of Damage Mechanism - Establish Matl Operating Envelop Crude Selection/ Evaluation Guidelines Unit Health Monitoring (UHM) Industry Knowledge Inspector Review - Review Inspection History - Develop Appropriate Inspection Plan Field Inspection - External Visual - Ultrasonic Thickness - Cracking Inspection - Special Emphasis ( High Temp Sulfidation, CUI, Nap Acid, Etc.)

7. Personnel Master Equip List (MEL) Process Info Conseq of Failure (CoF) Unit Margins PID Review System Review Damage Mech Review Conseq Review Validation Mtg Inspection Planning Operations xxxxxxx Process Engineering xxxxxxx Inspection xxxxxxx Planning & Optimization xx Environmental x Valero Support

8. Mechanical Integrity 8 -A multidisciplined group is key to developing a successful RBI program -RBI is a focused inspection program reducing the risk and improving mechanical integrity of fixed equipment and piping across the refinery.