DOT CONSTRUCTION AUDITS

Lessons Learned

November 2017

RECENT REGULATIONS SUMMARY

• 49 CFR 192.620(c)(6) – AMAOP Construction Requiremen ts – October 17, 2008• 192.801(b) – Construction Operator Qualification Program• 192.328(a) – Construction Quality Assurance Plan

• 49 CFR 191.22 – Operator Registry Notifications - Jan uary 1, 2012• PHMSA – Advisory Notification (ADB-2014-03) - Septemb er 12, 2014

• New ORN Requirementso ORN required no later than 60 days prior to Constructiono Start - Materials Purchasing/ROW Acquisition/Fabrications/Clearing/Grading

o Inter/Intrastate – Jurisdictiono Breakout Tanks

• New SOP PHMSA/State - Operator Registry Notifications• New ES Pre-Project Reporting Requirements

• PHMSA – Advisory Notification (ADB-2014-04) - Septemb er 18, 2014• Guidance for Pipeline Flow Reversals, Product Changes, and Conversion to Service • New SOP - Conversion to Service/Product Changes/Flow Reversals • New ES - Conversion to Service/Product Changes/Flow Reversals• Written COS Plan Available

• 49 CFR 190 Subpart E – Cost Recovery for Design - Jan uary 23, 2017• Final Rule 2.5 Billion Dollar Projects – PHMSA travel to Pipe Mills • MOC ES - Pre-Project Reporting Requirements

o New section added for Large Projects – Collect the required data

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CHALLENGES

• Project Management – Budgeting/ORN Notifications• DOT Interface – Compliance Role/Project Compliance• Inspections – Unannounced/Short Notice/General Findings• Project Status Updates/Scheduling Inspectors• Procedures/Standards Used – Pipeline, Stations, Terminals, Meters

o Providing to PHMSA – SharePoint/Box/Thumb Drives • Project Document Database – Procedures/Records • RFI Process – Variance/Project Specific Procedures

o Timely MOC Process• Effective Communication Across Spreads

o Especially Inspectors/Contractors/Craftsman• Pipeline/Stations/Meters – Different PMs/Contractors• Inspector QA Process

o Procedure Knowledge – Records Accuracyo Adherence Procedures – Engaged

• Social Media/Protestorso Security/Sabotage

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PHMSA/STATE INSPECTIONS

• Staffing Increases – Both Federal/State • Agencies Training Inexperienced Staff

o Fab Shopso Mechanized Welding/Large Diameter

• Inspection Protocols o Kickoff Checklisto Construction Requested Itemso COS/Flow Reversal/Product Change - Checklisto Commissioning Checklists

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PROJECT BUDGETING

• Compliance Role – Staffing/Travelo Company/Contract Personnel

• Crude Oil Pipelineo 4 States/9 Spreads/PS/Terminalso (1148 Miles) – 21 Inspectors/79 Audits/286 Days

• COS Natural Gas to Crude Oil Pipelineo 6 States/PS/Tankso 3 PHMSA Regionso (635 Miles) - 10 Inspectors/17 Audits/39 Days

• Natural Gas Pipeline o 4 States/18 Spreads/10 CSo 2 PHMSA Regions/2 State Agentso (711 Miles) - 24 Inspectors/49 Audits/149 Days

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INSPECTION PROCESS

• ORN Notification - Inter/Intrastate/Transmission/Gathering• Screening - Construction Requested Items• Mills/Fab Shops/Pipe Yards• Procedures/Records/Observations• Kickoff Inspection

o Designo Procedureso Contractors/Locationso QA Process

• Field Construction Inspections• Final HQ Inspection

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PROCEDURES INSPECTION

• Standard Form 5 – Natural Gas• Standard Form 7 – Hazardous Liquids• PHMSA II/IA Modules - Customized• Mainline Pipeline• Terminals/Breakout Tanks

o API 650 12th Edition (NIBR)• Pump/Compressor Stations• Welding Standards

o API 1104 21st Edition (NIBR)o Mechanizedo Sticko Fab Shopo Terminals

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CONSTRUCTION FIELD INSPECTION

• Spread Location – Chief, Sr Welding/Coating, NDE Auditor • Safety/Environmental Training• Daily Scatter Sheet• Inspector Guide/GPS – Activity Locations• Vehicles/Terrain• Records

o Hardcopy/Tablet o Consistencyo QA/Procedures Adherenceo Calibration Records – Equipment Used

• Protocol 9 Equivalent – Know Procedures/Perform Tasks

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FINAL INSPECTION

• Project/Operations Handoff Documentation o Commissioning Checklistso Records Available to Operations

• Studies – HCA/Class/AC Mitigation/Interference• MAOP Verification – Hydro Test Records• Weld Map Records

o Summary – Traceable/Verifiable • Control Room Management

o Field Point to Pointo CRM Procedures/Records

• Safety Programs – DP, PA, SOP, OQ, IM, D/A, CRM

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RFI Gas Summary

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RFI NATURAL GAS PIPELINE SUMMARY

Design Standards• Onshore Pipelines Design

o Design, constructed, tested, and inspected per 192 language added.

• Design Guideline for Road and Railroad Crossingso Allowed the 0.5 design factor for uncased crossings in a class location –

specification requires 0.4 design factor

Compression Standards• Design Requirements for Facility Spacing

o 192.735(a) specific requirements added.

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RFI NATURAL GAS PIPELINE SUMMARY

Welding Standards• General Welding Requirements

o Specified SMAW welds shall be protected from sudden cooling or moisture by wrapping immediately.

o Clarified that temporary welds are to be treated the same as permanent welds – weld procedures and NDE.

• Nondestructive Examinationo Approved a project specific weld numbering nomenclature/stickers.o Allowed to not require welder ID on radiographic film, but traceable and

documented in project file.

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RFI NATURAL GAS PIPELINE SUMMARY

Coating Standards• Coating of Field Joints, Valves, Tie-Ins, Girth Wel ds, and Short Sections of Pipe

Using Two Part Epoxyo Clarified that patch sticks not allowed for field coating repairso Clarified the surface profile ranges of 1.5 to 5.0 Mils allowed to meet DFT requirements.o Clarified two part epoxy coating mil thickness range allowed (20-50 Mils)o Specified at no time can heat be applied to accelerate cure time.o Specified backfill cannot begin until coating has cured to Shore D of >= 80.o Specified project wide jeep voltage settings – FBE prejeep, Girth Welds, Final Jeep, HDD

Bore ARO.o Specified UV protection Latex White Wash coating jeeping mil thicknesso Clarified the use of SPC-2888 as an ARO Coating, Specified min and max mil thicknesso Specified the maximum substrate preheat temperature for SPC-2888o Specified that patching of FBE coated girth welds not allowed.o Specified that above ground and associated appurtenances whether prefab or newly

constructed coated per specification.o Allowed the use of Denso Protal 7125 at ambient temperatures below 50° F

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RFI NATURAL GAS PIPELINE SUMMARY

Pipeline Standards• Pipeline Construction

o Repair of pipe - code language added.o Ditching - 192.327 added and Bending - 192.313 requirements added.o Specified that approval required for pups < 10ft in length.o Clarified padding machine and screen size.o Clarified that UT test for lamination at tie-ins not required, lamination checks are

performed by the pipe mill.o Clarified restrictions for bending activities within 2 pipe diameters of end of joint and

for ARO coated pipe.o Clarified seam offset when making lineups for HSSAW seamed pipe.o Clarified flange torque and tensioning requirements.o Clarified bolt thread lubricant and stud and nut requirements.o Allowed the use of straw instead of warning tape for marking prior to placing spoil

over existing lines.

• Pressure Test Designo HDD, pre pull pressure test not strength test.o Clarified manifold test header test pressures.o Clarified the minimum and maximum hydrotest pressures.

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Hazardous Liquids RFI Summary

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RFI CRUDE OIL PIPELINE SUMMARY

Welding Standards• General Welding Requirements

o Pipe to remain supported and stationary until completion of root pass. Lift height restricted to 12”.

o 24 hour NDT hold on first days production o Cap button height allowed 1/8”o Weld Inspectors required to have proper tools

• Repair of Defectso Specified grinding depth for repair welds

• Special Details o Unequal Wall Thickness – Counter Boringo Mechanized ECA Variance

• Welding Procedure Specificationo Specified minimum gap of 1/16” and maximum gap allowance of 3/16”o Clarified preheat and interpass temperatures

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RFI CRUDE OIL PIPELINE SUMMARY

Coating Standards• Coating of Field Joints, Valves, Tie-Ins, Girth Wel ds, and Short

Sections of Pipe Using Two Part Epoxyo Bar Code stickers – disbanded stickers do not cause corrosive condition,

and stickers do not mask a holiday.o Allowing HDD string girth welds – base coat SPC 2888 under the

Powercrete R95.o Allowed the use of Positector 6000 – standard required magnetic pull off

film thickness gauge calibrated within 24 hourso Clarified ES surface profile ranges for two part epoxy of 1 – 4 Mils to use

manufactures specification of 2.5 to 5.0 Milso Clarified to take surface profile sampling – every 10th girth weld on

mainline not twice/day and once per road bore.o Clarified jeeping voltages for FBE coated mainline, coated girth welds,

final jeep prior to lowering in.

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RFI CRUDE OIL PIPELINE SUMMARY

Pipeline Standards• Pipeline Construction

o Backfill – Allowed to compact backfill, 12” lift language pertains to facility construction.

o Clarified 1.5” padding screens, screen height < 10 ft above top of pipe.o Clarified HDD pre-reamed pilot hole diameters.o Clarified boom spacing maximum distance – ECA lifting/lowering of pipe

from last boom and dirt pad.

• Pressure Testingo HDD/Pre-test headers – Did not allow pressure test of manifold to count

as 8 hour pre pull pressure test.o Clarified manifold test header test pressures.o Clarified HDD pre-test is not a strength test, strength test completed post

pull and tie in as part of the overall pressure test.

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LESSONS LEARNED

• Communication is Keyo PMs/CMs/SMEso Document Database – Procedures/Records o Weekly Project Schedule/Inspection Scheduleo Timely Response to Open Items

• Consistency Across Projecto Gatekeeper – Compliance Groupo Pipeline/Stations/Terminals/M&Ro Audit Notes for Project Team/Responses to Agency

• Records Inspections - Documentationo Records Complete/Per Procedureso Hardcopy or Electronic Records – Mark Hardcopy Folders Reviewedo Welder Qualifications – Records Match Procedure Parameterso Calibration Records – Equipment Used

• Procedure Inspectionso Per Regulations – API 1104 21st Edition, API 650 12th Edition (NIBR)o Procedures Testedo Inspectors Knowledge Tested - RFI/Procedures

• Field Inspectionso Inspector Engagemento Prevent Repeat Findingso Training/Termination

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MINIMAL ENFORCEMENT/FINDINGS

• Timely Responses – Findings/Concerns• Responses Shared – Findings/Concerns• Training/Termination – Noncompliance• Enforcement HL Project – 0• Enforcement COS Project – 0• Enforcement Gas Project – 1 Warning Letter

o Branch Welder Quals, Curing Coating with Heat Gun, Volt Meter Connection – Weld Procedure Volt Range.

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