PHMSA Perspectives Construction Process & Standards API – AGA Joint Committee Oil & Gas Pipeline Welding Practices New Orleans, LA Steve Nanney January 27, 2010

Overview Regulatory Overview of 2009/2010 PHMSA Expectations PHMSA Actions to Date API 5L Actions to Date Construction Issues - Summary API – Needed Actions Challenges Looking Ahead PHMSA Links

Regulatory Overview of 2009/2010 Editorial Rule – Published 11/30/09 Distribution IMP – Published 12/4/09 Control Room Management – Published 12/7/09 One Rule - Summer 2010 Standards Update - Summer 2010 Miscellaneous Rule – Summer 2010 Excavation Damage – To Be Determined (TBD) Low Stress Integrated Insp. – TBD

PHMSA Expectations Hold safety paramount Protect the public and environment Follow the regulations Update standards - reflective of issues Focus on people and processes Quality Management Systems

PHMSA Actions to Date April 23, 2009: PHMSA New Construction Workshop May 14, 2009: ADB: Potential Low and Variable Yield and Tensile Strength & Chemical Composition Properties in High Strength Line Pipe June 5, 2009: PHMSA Letter to Industry Trade Associations June 22, 2009: API Standards Conference Summer 2009: Letters to Alternative MAOP SP holders on Low Strength Pipe Spring/Fall 2009: Worked with Operators to identify low strength pipe & remove August 2009: Construction web site established November 2009: Weld in service rupture due to alignment and welding January 2010: Weld in service leak due to alignment and welding

API 5L - Actions to Date API 5L – sub-committee proposed changes for “low strength” pipe issues QA management system for the supplying steel and rolling mill (8.3.1) Coil/plate rolling practice shall be controlled to ensure mechanical properties are uniform (8.3.7) Qualifications in hot rolling practice deviations (8.3.8) Standard sampling locations along plate or coil length according to documented procedures (10.2.3.2) Modifications to retest procedures (10.2.12.2)

API 5L Actions to Date - continued Manufacturing Procedure Specification – new (B.3) Inspection and Test Plan – required (B.4) Manufacturing Procedure Qualification Tests – mechanical tests (B.5.3) Qualification consider assessment of coil/plate tensile property variability and coil/plate to pipe strength changes Purchaser shall be notified of all plate/coil/pipe that do not meet the initial defined rolling practices control parameters, but have been re-qualified (B5.6 and B5.7)

API Actions to Date API 5L – subcommittee – co-chairs and members Great effort to improve API 5L standards API 5L – sub-committee proposed changes for “low strength” pipe Needs API Membership approvals PHMSA is appreciative of Efforts “Proposed” Revisions to API 5L need timely approvals

Construction Issues - Summary Topic Occurrences Coating* 117 Welding* 87 Excavation 20 Nondestructive testing Pipe material* 12 Bending 9 Lowering in* 7 Hydrotesting 4 Design 3 Other 8

Construction Issues Low Strength Pipe Coating Adhesion

Construction Issues Repair Weld Cracking Issues

Construction Issues Pipe bevel ends and alignment – high/low

Construction Issues Welding, NDT, Transitions, & Alignment Cut Induction Bends

Construction Issues Alignment – does it meet standards for API 1104?

Construction Issues Alignment – does it meet standards for API 1104?

Construction Issues Weld Failures – Transition and Cracking Pipe Sizes 42-inch 36-inch 30-inch 20-inch

API 1104 – Needed Actions Appendix A – Guidance for ECA Input Parameters for ECA Defined steps in defining Defect Acceptance Criteria Pipeline stress analysis – using field construction and operational extremes for procedures WPQ – Essential Variables Defect Acceptance Criteria UT – verification procedures Procedures – for field usage Training

Joint API – Needed Actions Appendix A - Weld Procedure – Essential Variables Change in the grade or manufacturing process of the pipe material or a change in the chemical composition or processing – Different- steel manufacturers and hot rolling practices Major change in joint design – (API 1104 & API 5L) Pipe Bevel Alignment – usage of API 5L and/or ASME B31.8 or 31.4 criteria - (API 1104 & API 5L)

Joint API – Needed Actions Weld Tolerances – (API 1104 and API 5L) Pipe, diameter of body and pipe ends - API 5L Bevel Design – API 1104 & ASME B31.8 and B31.4 Alignment – API 1104 Varying/uneven wall thickness (ASME B31.4 and B31.8) Bends – cut within bend – ovality/out-of-roundness criteria Repair welding – (API 1104) Preheat Welding procedures Post heat NDT standards

Transition Weld Failures Alignment – bevel and uneven wall thickness Ovality and out-of-roundness Lateral displacement during construction Soil settlement Overburden loads Pipeline right-of-way topography Weld stress concentration factor (SCF) Internal pressure

Transition Weld Failures Alignment – does it meet standards for API 1104?

Challenges Industry People Processes Putting safety first – in practice Establishing standards that address all issues Recognize that large diameter, higher grade material with higher operating pressures need “updated and some new” practices People Getting people to consistently do it right Finding and retaining appropriate skill sets Achieving sustained improvements Processes Establishing proper procedures Ensuring a seamless transition between contractors and owners Contracting methods

Looking Ahead PHMSA construction inspection focus will continue Expect increased use of enforcement actions on all construction issues – 72%SMYS and 80%SMYS MAOP Rule Construction OQ – required by MAOP Rule (If planning project, contact PHMSA Region for details.) May need to explore other options: More effective regulations and standards Timely enforcement actions Operator qualification for construction

PHMSA – links Pipeline Safety Guidance – Advisory Bulletins, Low Strength Pipe Guidelines, MAOP Rule FAQs http://www.phmsa.dot.gov/pipeline/guidance Construction Workshop http://primis.phmsa.dot.gov/construction/index.htm MAOP Rule – FAQs http://primis.phmsa.dot.gov/maop/index.htm Special Permits – FAQs http://primis.phmsa.dot.gov/classloc/faqs.htm

QUESTIONS

E-mail: steve.nanney@dot.gov Thank you Steve Nanney Office: 713-272-2855 Mob: 713-628-7479 E-mail: steve.nanney@dot.gov