1220 L Street, NW Washington, DC Executive Committee on Standardization of Oilfield Equipment & Materials (ECS) New Member Orientation Roland Goodman Manager, Upstream Standards June 24, 2008 Hyatt Regency, Calgary AB, Canada

1220 L Street, NW Washington, DC Presentation will cover:  API background  Value of API standards  Committee organization  Standards development process  Antitrust  Contact information New Member Orientation

1220 L Street, NW Washington, DC API Background  API formed in 1919 as national trade association to support the U.S. oil and natural gas industry through legislative and regulatory advocacy and standards development  The API Standards Department was formed in 1923, and the first API standard was published in 1924 covering pipe sizes, threads, and couplings  All industry segments are now active in standardization – Exploration & Production, Refining, Marketing, Petroleum Measurement, and Pipeline Transportation

1220 L Street, NW Washington, DC API Roles  Develop industry standards  Government advocacy  Conduct research  Gather statistics  Inform government and public  Publish technical industry information  Provide education  Oversee certification programs

1220 L Street, NW Washington, DC API Standards  Foundation of self supporting programs, including API Monogram Program  Basis for worldwide operations  Core of Institute’s technical authority  API publishes ~500 technical standards covering all aspects of the oil and natural gas industry

1220 L Street, NW Washington, DC Value of API Standards  Improved safety and reliability  Improve equipment interchangeability  Reduced compliance costs  Reduced procurement costs  Foundation for company standards  Basis for a majority of the ISO equipment standards in the oil and gas industry

1220 L Street, NW Washington, DC International Standards Activities API is involved in international standardization via ANSI  Secretariat for ISO TC 67 (Equipment & Materials) and US Technical Advisory Groups (TAGs)  ~70% of ISO TC 67’s international work program is based on API standards  Several API standards committee members also participate on ISO committees

1220 L Street, NW Washington, DC Standards Development Process API is an ANSI-accredited Standards Developing Organization (SDO)  Open, transparent consensus process  Approved and published procedures  Parliamentary procedures (booklet)  Regular program audits

1220 L Street, NW Washington, DC E&P Standards Committees  ECS: –Supervises work of subcommittees –Coordinates cross-subcommittee issues –Approves standards research  Subcommittees: –Develops maintains standards –Serves as the consensus voting body –Supervises standards research

1220 L Street, NW Washington, DC ECS Organization Chart Upstream Committee ECS Executive Committee on Standardization Subcommittee 2 (SC 2) Offshore Structures Subcommittee 6 (SC 6) Valves and Wellhead Equipment Subcommittee 8 (SC 8) Drilling Structures and Equipment Subcommittee 13 (SC 13) Drilling, Completion, and Fracturing Fluids Subcommittee 20 (SC 20) Supply Chain Management Subcommittee 11 (SC 11) Field Operating Equipment Subcommittee 19 (SC 19) Completion Equipment Subcommittee 10 (SC 10) Well Cements Subcommittee 18 (SC 18) Quality Subcommittee 17 (SC 17) Subsea Production Equipment Subcommittee 5 (SC 5) Tubular Goods Subcommittee 15 (SC 15) Fiberglass and Plastic Tubulars GCSP General Committee on Special Programs

1220 L Street, NW Washington, DC Standards Development Process  Developed by consensus (does not mean unanimity)  Subcommittee members are voters  Voting categories are established in some subcommittees  One company – One vote  Balance between owner/users, manufacturers, contractors, and consultants  Entire process typically takes months (balloting/comment resolution 3-12 months)  API corporate membership is not a requirement for participation on API standardization committees

1220 L Street, NW Washington, DC Requirements for Standards Committee Membership  Be technically proficient in a discipline related to the standard  Attend two committee meetings per year  Agree to work on committee business such as standards revisions and technical inquiries  Have the support of company management to participate

1220 L Street, NW Washington, DC Antitrust Concerns  Standards meetings are gatherings of competing operators, manufacturers, and suppliers  U.S. antitrust laws impose restrictions on what we can and cannot do: –We can work on standards –We CANNOT share business plans –We CANNOT disparage another company’s products or services –We CANNOT exchange price, cost, or production data

1220 L Street, NW Washington, DC Antitrust Concerns (cont.)  Development and interpretation of standards are sensitive activities  AVOID: –Anti-competitive activities –Conflicts of interest –Bias or lack of objectivity  The API Antitrust Compliance Guide is available in your new member packet

1220 L Street, NW Washington, DC API Information Links  Committee Websites –  Ballot System –  Meeting Information –  Catalog of Publications –  Document Sales – IHS (800) or

1220 L Street, NW Washington, DC API Standards Contact Information  David Miller, Director, API Standards Program, (202)  Roland Goodman, Manager Upstream Standards, (202) ; SC 2, SC 8, SC 19, SC 20  Ed Baniak, Senior Standards Associate, (202) ; SC 6, SC 11, SC 17, SC 18  Brad Bellinger, Senior Standards Associate, (202) ; SC 5, SC 10, SC 13, SC 15  Carriann Kuryla, Program Assistant, (202) ; ballot system, rosters updates, website  Gerardo Uria, Manager - Monogram/APIQR, (202) ; Monogram program administration  Chip Evans, Global Services Manager, (713) ; Monogram program applications