1. HOUSTON, TEXAS1 Hazardous Liquid Pipelines ENGINEERING SERVICES LP HOUSTON, TEXAS Engineering Specification

2. HOUSTON, TEXAS2 Hazardous Liquid Pipelines 1.0 SCOPE –Covers the design, materials, fabrication, construction, inspection, testing, operations, maintenance, and safety aspects of hazardous liquid pipeline systems –Also covers the components including, but not limited to, pipe, relief devices, valves, fittings, flanges, bolting, gaskets, hangars, and supports.

3. HOUSTON, TEXAS3 Hazardous Liquid Pipelines u EXCLUSIONS –Auxiliary piping such as water, air, steam, lubricating oil, gas, and fuel –Pressure vessels, heat exchangers, pumps, meters, and other equipment not in scope –Petroleum refinery, natural gasoline, gas processing, ammonia, carbon dioxide processing, and bulk plant piping covered in the scope of ASME/ANSI B31.3, Plant Piping.

4. HOUSTON, TEXAS4 Hazardous Liquid Pipelines u Exclusions (Continued) –Gas transmission and distribution piping systems covered under ASME/ANSI B31.8 –Piping at or below 15 psi –Piping above 15 psi if design temperature is below -20 o F or above 250 o F –Design and fabrication of proprietary items of equipment, apparatus, or equipment

5. HOUSTON, TEXAS5 Hazardous Liquid Pipelines u INTENT –Provide engineering specifications for safe construction, operation, maintenance, and inspection of LCCC hazardous liquid pipelines –Shall meet or exceed the requirements in ASME/ANSI B31.4 and DOT 49CFR195 –Not retroactive for existing pipelines which shall be inspected and tested to the Code used in original design and construction.

6. HOUSTON, TEXAS6 Hazardous Liquid Pipelines 3.0 PIPING SYSTEMS DEFINITIONS –General Terms (14) –Piping Systems (20) –Pressure Relief Stations and Regulators (3) –Valves (2) –Pipe and Piping Terms (2) –Dimensional Terms (3) –Mechanical Properties (5) –Steel Pipe (3)

7. HOUSTON, TEXAS7 Hazardous Liquid Pipelines 4.0 DESIGN, FABRICATION, OPERATION, AND TESTING TERMS –Uprating (1) –Pressure Terms (8) –Temperature Terms (3) –Stress Terms (5)

8. HOUSTON, TEXAS8 Hazardous Liquid Pipelines 5.0 MATERIALS AND EQUIPMENT –Acceptable Materials and Specifications –Marking –Material Specifications »Steel Pipe »Fittings –Transportation of Line Pipe –Conditions for Reuse of Line Pipe

9. HOUSTON, TEXAS9 Hazardous Liquid Pipelines 6.0 WELDING –Welding Terms –Preparation for Welding »Safe Practices in Cutting and Welding »Welding Processes and Filler Metal »Welding Qualifications »Qualification Records »Material Limitations »Welder Requalification Requirements »Qualification Records (WPS, PQR, Welder)

10. HOUSTON, TEXAS10 Hazardous Liquid Pipelines 7.0 Design Conditions –Provides a set of standards covering »Specifications for, and selection of, equipment and piping components »Acceptable methods of making branch connections »Provisions for temperature changes »Approved methods for support and anchorage of exposed and buried piping systems.

11. HOUSTON, TEXAS11 Hazardous Liquid Pipelines u Design Conditions (Continued) –Exclusions »Pipe Materials (Section 5) »Welding Procedures (Section 6) »Installation and Testing of Piping Systems –Special Engineering Stresses Not Specifically Covered in Specification »River crossings, inland coastal water areas, bridges, areas of heavy traffic, long self-supported spans, unstable ground, vibration, earthquake, thermal, etc.

12. HOUSTON, TEXAS12 Hazardous Liquid Pipelines u Allowable Stress Values –S = 0.72 x E x SMYS, psi (MPa) where 0.72 = design factor E = weld joint factor, normally 1 –Allowable stress values shall be determined for »Used pipe or new/used pipe of unknown or ASTM 120 specifications »Pipe which is cold worked to meet SMYS and reheated to 600 o F or higher shall be 75% of applicable stress value

13. HOUSTON, TEXAS13 Hazardous Liquid Pipelines u Allowable Stress Values (Continued) –In shear shall not exceed 45% SMYS –In bearing shall not exceed 90% SMYS –Structural supports and restraints shall not exceed 66% SMYS –Structural supports and restraints of unknown piping specifications shall be assigned an SMYS of 24,000 psi or less

14. HOUSTON, TEXAS14 Hazardous Liquid Pipelines u Limits of Calculated Stresses Due to Sustained Loads and Thermal Expansion –Internal Pressure Stresses –External Pressure Stresses –Allowable Expansion Stresses –Additive Longitudinal Stresses –Additive Circumferential Stresses Due to Occasional Loads

15. HOUSTON, TEXAS15 Hazardous Liquid Pipelines u Limits of Calculated Stresses Due to Occasional Loads –Operation »Sum of longitudinal stresses produced by pressure, live and dead loads, and occasional loads, i.e. wind and earthquake shall not exceed 80% SMYS –Test »Stress due to test conditions are not subject to above limitations

16. HOUSTON, TEXAS16 Hazardous Liquid Pipelines u Limitations on Design Pressure, P –Shall not exceed 85% of mill test pressure –Alternatively, shall not exceed 85% of field test pressure if mill tests are not available u Limitations on SMYS –Used pipe from Company stock with known specifications may be assigned full S value –An S value = 24,000 psi shall be assigned to pipe with unknown specifications

17. HOUSTON, TEXAS17 Hazardous Liquid Pipelines u Additional Requirements for Nominal Wall Thickness, t –Shall not be reduced to less than 90% of the design thickness under any circumstances u Allowances –Corrosion (Not required if corrosion controlled) –Threading and Grooving –Weld Joint Factors –Wall Thickness and Defect Tolerances

18. HOUSTON, TEXAS18 Hazardous Liquid Pipelines u Straight Pipe Under Internal Pressure –Design wall thickness of steel pipe shall be calculated by the following equation t = P i D/2S whereP i =internal design gage pressure D=outside diameter of pipe, in. S=applicable allowable stress value, psi

19. HOUSTON, TEXAS19 Hazardous Liquid Pipelines u Additional Pressure Design Considerations –Flanges, Reducers, Fittings, Elbows, Bends, and Intersections –Closures »Quick Opening Closures »Closure Fittings »Closure Heads »Fabricated Closures »Bolted Blind Flange Connections

20. HOUSTON, TEXAS20 Hazardous Liquid Pipelines u Expansion and Flexibility –Means of Providing Flexibility –Amount of Expansion –Properties »Coefficient of Thermal Expansion (6.5x10 -6 in./in./ o F) »Modulus of Elasticity (29x10 6 psi) »Poisson’s Ratio (0.3 for steel)

21. HOUSTON, TEXAS21 Hazardous Liquid Pipelines u Design of Pipe Supporting Elements u Combined Stress Calculations –Restrained Pipelines –Unrestrained Pipelines –Analysis »Basic Assumptions and Requirements

22. HOUSTON, TEXAS22 Hazardous Liquid Pipelines 8.0 CONSTRUCTION –Construction Specifications –Inspection Provisions –Right-of-Way –Handling, Hauling, Stringing, and Storing –Damage to Fabricated Items and Pipe –Ditching –Welding –Tie In

23. HOUSTON, TEXAS23 Hazardous Liquid Pipelines u CONSTRUCTION (Continued) –Installation of Pipe in Ditch –Backfilling –Hot Taps –Restoration of Right-of-Way and Cleanup –Special Crossings –Block and Isolating Valves –Mainline Valves –Scraper Traps

24. HOUSTON, TEXAS24 Hazardous Liquid Pipelines u CONSTRUCTION (Continued) –Line Markers –Corrosion Control –Pump Station, Tank Farm, and Terminal Construction –Storage and Working Tankage –Electrical Installations –Liquid Metering –Liquid Strainers and Filters

25. HOUSTON, TEXAS25 Hazardous Liquid Pipelines 9.0 INSPECTION –General »Shall assure compliance with material, construction, welding, assembly, and testing requirements of LCCC Specifications, ASME/ANSI B31.4 and DOT 49CFR 195 –Qualification of Inspectors »Inspection personnel shall be qualified by training and experience to the criteria in API 570

26. HOUSTON, TEXAS26 Hazardous Liquid Pipelines u Inspection Services –Right-of-way and grading –Ditching –Line up and pipe surface inspection –Welding –Coating –Cathodic protection –Tie-in and lowering –Backfilling & cleanup –Pressure testing –Station construction –River crossings –Electrical installation –Radiography –Corrosion control »external »internal

27. HOUSTON, TEXAS27 Hazardous Liquid Pipelines u Inspection Services –Backfilling & cleanup –Pressure testing –Station construction –River crossings –Electrical installation –Radiography –Corrosion control »external »internal

28. HOUSTON, TEXAS28 Hazardous Liquid Pipelines u Type and Extent of Examination Required –Visual »Material-mechanical damage »Permanent records: Location of pipe, wall thickness, type, specification, and manufacturer –Construction »Surface defects: before coating operation and during lowering-in and backfilling operations »Pipe swabbing operation

29. HOUSTON, TEXAS29 Hazardous Liquid Pipelines »Proper alignment and condition of weld joint surface before welding »Inspect stringer bead for cracks »Remove irregularities on weld cap to prevent coating damage »Inspect all repairs, changes, or replacements prior to backfilling operation »Inspect fit of pipe to ditch prior to backfilling »Inspect backfilling operations for quality and compaction of backfill, placement of material for erosion control, and possible coating damage

30. HOUSTON, TEXAS30 Hazardous Liquid Pipelines »Inspect cased crossings during installation to assure that the carrier pipe is supported, sealed, and insulated from the casing »Inspect piping components other than pipe to insure damage-free condition and proper installation

31. HOUSTON, TEXAS31 Hazardous Liquid Pipelines u Supplementary Types of Examination –Weld inspection and testing »Complete in accordance with LCCC Specs and ASME/ANSI B31.4 –Weld defect and repair »Complete in accordance with LCCC Specs and ASME/ANSI B31.4 –Coatings »Use LCCC Specs and ASME/ANSI B31.4

32. HOUSTON, TEXAS32 Hazardous Liquid Pipelines 9.2 TESTING –Testing of Fabricated Items –Testing After New Construction »Systems or Parts of Systems »Testing Tie-Ins »Testing Controls and Protective Equipment –Hydrostatic Testing of Internal Pressure Piping »Hydrotest to 1.25 times the internal design pressure for at least four (4) hours »Use API 1110 for guidance in hydrostatic tests

33. HOUSTON, TEXAS33 Hazardous Liquid Pipelines »Treat hydrotest water with a bactericide and corrosion inhibitor »Relieve excess pressure during the test as required »Hydrotesting with gas or nonvolatile hydrocarbons is not permitted on LCCC projects without written permission from Company management –Leak Testing »Reduce hydrotest pressure to design pressure and hold for an additional eight (8) hours

34. HOUSTON, TEXAS34 Hazardous Liquid Pipelines u Qualification Tests for Pipe –Visual Examination –Bending Properties –Determination of Wall Thickness –Determination of Weld Joint Factor –Weldability –Determination of Yield Strength –Minimum Yield Strength Value –Records

35. HOUSTON, TEXAS35 Hazardous Liquid Pipelines 10.0 Operation and Maintenance Plans and Procedures –Written detailed plans and training programs for employees –Plan for external and internal corrosion control –Written emergency plan –Plan for reviewing changes in conditions affecting the integrity and safety of the piping system.

36. HOUSTON, TEXAS36 Hazardous Liquid Pipelines –Liaison with local authorities and other pipeline operators to prevent excavation accidents. –Procedures to analyze all failures and accidents to determine the cause and prevent recurrence. –Record system to administer the plans and procedures. –Procedures for abandoning pipelines –Procedures to assure public safety in pipeline operation and maintenance

37. HOUSTON, TEXAS37 Hazardous Liquid Pipelines –Operation and maintenance of piping systems in conformance with LCCC Specifications, ASME/ANSI B31.4, and DOT 49CFR195. –Plan and procedure modifications as required

38. HOUSTON, TEXAS38 Hazardous Liquid Pipelines 10.2 PIPELINE OPERATIONS AND MAINTENANCE –Operating Pressure »The internal design pressure and pressure rating for all components shall not be exceeded in steady state operations. »Pressure rise due to surges shall not exceed the internal design pressure at any point in the piping system by more than 10%.

39. HOUSTON, TEXAS39 Hazardous Liquid Pipelines »Requalification of a piping system is required if a higher operating pressure produces a hoop stress more than 20% SMYS. Requirements in paragraph 456, ASME/ANSI B31.4 shall be followed without exception. »Derating of a pipeline to a lower operating pressure in lieu of repair or replacement may be completed with the maximum operating pressure determined by paragraph 10.2.7, LCCC Specification. »Codes in effect during original construction shall be consulted for allowable stress and design criteria.

40. HOUSTON, TEXAS40 Hazardous Liquid Pipelines –Communications –Markers –Right-of-Way Maintenance –Patrolling –Pipeline Repairs »Repairs shall be completed in accordance with LCCC Specification, Repair of Pipelines. »Allowable pipeline repairs and repair methods are summarized in B31.4 and LCCC specifications.

41. HOUSTON, TEXAS41 Hazardous Liquid Pipelines u Railroads and Highways Crossing Existing Pipelines –Use API 1102 to determine the total stress caused by internal pressure and external loads. If new external pipe loading exceeds 0.72SMYS, Company will install mechanical reinforcement, suitable protection, or increased pipe thickness. –Installation of uncased carrier pipe is preferred.

42. HOUSTON, TEXAS42 Hazardous Liquid Pipelines 10.3 PUMP STATION, TERMINAL, AND TANK FARM OPERATION AND MAINTENANCE –Pressure limiting devices, regulators, flow controllers, relief valves, and other safety devices shall be inspected annually to determine condition and functionality. –Inspect storage tanks in accordance with API 653.

43. HOUSTON, TEXAS43 Hazardous Liquid Pipelines u CORROSION CONTROL u EMERGENCY PLAN u RECORDS –Necessary operational data –Pipeline patrol records –Corrosion records as required by B31.4 –Records for routine and/or unusual inspections –Pipeline repair records

44. HOUSTON, TEXAS44 Hazardous Liquid Pipelines 10.7 QUALIFYING A PIPING SYSTEM FOR A HIGHER OPERATING PRESSURE –Review initial design and previous testing –Determine present condition by leak surveys and other field inspections, examination of maintenance and corrosion control records, or other suitable means. –Complete necessary repairs, replacements, or alterations.

45. HOUSTON, TEXAS45 Hazardous Liquid Pipelines –Maximum steady state operating pressure may be increased after compliance with the previous slide and one of the following provisions: »If the condition of the pipeline is consistent with the design and hydrotesting has been completed to a test pressure equal to or higher than required for the new steady state operating pressure, the system is approved for the higher operating pressure. »The system is successfully hydrotested to a test pressure required for the higher operating pressure.

46. HOUSTON, TEXAS46 Hazardous Liquid Pipelines 10.8 Abandoning a Piping System –Disconnect all facilities to be abandoned from all transported sources, i.e., other pipelines, meter stations, control lines, and other equipment. –Purge all facilities to be abandoned to replace the transported liquid and vapor with an inert material. –Seal the ends of the piping system.

47. HOUSTON, TEXAS47 Hazardous Liquid Pipelines 11.0 CORROSION CONTROL –Scope –External Corrosion Control –Internal Corrosion Control –Pipelines in High Temperature Service –Stress Corrosion and Other Phenomena –Records