Mika Meyers Beckett Jones - mi-psc.force.com

Mika Meyers Beckett & Jones PLC 900 Monroe Avenue NW Grand Rapids, Michigan 49503 Tel 616-632-8000 Fax 616-632-8002 Web mmbjlaw.com Attorneys at Law James R. Brown Fredric N. Goldberg Neil L. Kimball Ronald M. Redick Of Counsel Also Admitted In Larry J. Gardner James K. White Ross A. Leisman Marjorie B. Gell James B. Beckett 1Colorado Claude L. Vander Ploeg Stephen J. Mulder Neil P. Jansen Brian M. Andrew John C. Jones 2Illinois Ronald J. Clark Douglas A. Donnell4 Eric S. Richards Heidi A. Lyon Steven L. Dykema 3New York John M. DeVries4 Scott E. Dwyer Daniel J. Parmeter, Jr. Matthew E. Fink Leonard M. Hoffius1 4Ohio Michael C. Haines William A. Horn5 Mark E. Nettleton2 Nikole L. Canute3 5Wisconsin Scott S. Brinkmeyer Jeffrey A. DeVree Andrea D. Crumback Steffany J. Dunker Retired John T. Sperla Daniel R. Kubiak Jennifer A. Puplava Amy L. VanDyke Ernest A. Mika David R. Fernstrum Mark A. Van Allsburg Nathaniel R. Wolf Veryl N. Meyers Mark A. Kehoe Elizabeth K. Bransdorfer Benjamin A. Zainea

March 21, 2007

Ms. Mary Jo Kunkle Executive Secretary Michigan Public Service Commission P.O. Box 30221 Lansing, MI 48909 Re: Application of Marathon Pipe Line LLC Case No. U-15251 Dear Ms. Kunkle:

Attached for electronic filing please find the Application of Marathon Pipe Line LLC. Enclosed with a hard copy of this letter (sent by first class mail) is a check made payable to the State of Michigan in the amount of $200 to cover the filing fee. Should you have questions, feel free to contact me.

Sincerely, William A. Horn

bjb Enclosures cc w/encl: Mr. James W. Gearheart H:\WAH\CLN\Marathon\HOUP\Ltr MPSC.doc

{224769.DOC 2} 1

STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

In the matter of the application of ) MARATHON PIPE LINE LLC for ) authority under 1929 PA 16 to construct, ) Case No. U-15251 operate and maintain a pipeline for the ) transportation of crude oil and petroleum. ) / William A. Horn (P33855) Mika Meyers Beckett & Jones PLC Attorneys for Petitioner 900 Monroe Avenue, NW Grand Rapids, MI 49503 (616) 632-8000 /

APPLICATION Pursuant to 1929 PA 16; MCL 483.1 et seq. and Rule 601 of the Michigan Public

Service Commission’s (“MPSC”) Rules of Practice and Procedure, R 460.17601,

Marathon Pipe Line LLC (“MPL”) respectfully requests authority to construct, install,

operate and maintain approximately 29 miles of new 24-inch outside diameter (“OD”)

pipeline, from a location originating at MPL’s existing break-out tankage facility in

Monroe County, near Samaria, Michigan and terminating at Huron River Junction south

of the Huron River in southern Wayne County, Michigan. At Huron River Junction, the

new 24-inch OD pipeline will connect to MPL’s existing 16-inch OD pipeline which

terminates at Marathon Petroleum Company LLC’s (“MPC”) Detroit refinery. In

support, MPL states as follows:

{224769.DOC 2} 2

1. MPL is a Delaware limited liability company engaged in the construction,

installation, operation and maintenance of pipelines, including those utilized in the

transportation of liquid crude oil and petroleum.

2. MPL’s principal office is located at 539 South Main Street, Findlay, Ohio

45840, with its Michigan registered office being The Corporation Company, 30600

Telegraph Road, Bingham Farms, Michigan 48025.

3. MPL is authorized to transact business in the State of Michigan and is in good

standing. Pursuant to Rule 601(2)(a) of the MPSC’s Rules of Practice and Procedures, R

460.17601(2)(a), the complete name, title, address and telephone number of the contact

person for applicant is as follows:

Don Malarky

Project Manager

Marathon Petroleum Company LLC

539 South Main Street

Findlay, Ohio 45840

Telephone: (419) 421-4542

Facsimile: (419) 421-4026

4. In this proceeding, MPL will be represented by the following individuals and

firm:

William A. Horn

[email protected]

Mika, Meyers, Beckett & Jones PLC

900 Monroe Avenue NW

Grand Rapids, Michigan 49503

Telephone: (616) 632-8000

Facsimile: (616) 632-8002

{224769.DOC 2} 3

James W. Gearheart

[email protected]

Marathon Petroleum Company LLC

539 South Main Street

Findlay, Ohio 45840

Telephone: (419) 421-2386

Facsimile: (419) 427-3534

5. MPL is experienced in the construction, installation, operation and

maintenance of pipelines, including those utilized for the transportation of crude oil and

petroleum. MPL and its predecessor companies have been operating pipelines for more

than 100 years. MPL currently has approximately 525 employees.

6. MPL currently owns and operates approximately 260 miles of pipeline and

related facilities within the State of Michigan. MPL owns and/or operates approximately

6,000 miles of pipeline and related facilities throughout the United States.

7. MPC’s Detroit, Michigan refinery, which presently supplies approximately 20

percent of Michigan’s liquid petroleum products needs, receives 100 percent of its crude

oil slate from MPL’s existing Samaria to Detroit pipeline and will continue to receive 100

percent of its crude oil slate from the proposed pipeline.

8. MPL is an interstate pipeline common carrier engaged in the transportation of

crude oil and petroleum. The rates to be charged by MPL for transporting crude oil and

petroleum in the proposed pipeline will be established pursuant to the rules and

regulations of the Federal Energy Regulatory Commission (the “FERC”). The design,

construction, installation, operation and maintenance of the proposed pipeline is subject

to the rules and regulations of the U.S. Department of Transportation’s Pipeline and

Hazardous Materials Safety Administration, Office of Pipeline Safety and all other

applicable federal, state and local laws.

{224769.DOC 2} 4

9. A map of the proposed pipeline route and the location of the appurtenant

facilities is attached hereto as Exhibit A-1.

10. When completed, the proposed pipeline will be operated and maintained by

MPL and accomplish the following:

A. It will meet the expected pipeline capacity needs of MPC’s Detroit,

Michigan refinery for delivery of crude oil to assist in meeting Michigan’s consumer fuel

demand.

B. It will allow the shipment of additional volumes of heavier crude oil

from Canada, second largest in the world in proven reserves, providing a more stable

supply for MPC’s Detroit, Michigan refinery. The proposed pipeline will also provide

MPC with geographical diversification since the majority of crude oil supply for the U.S.

Midwest, whether domestic- or foreign-produced, is sourced from the U.S. Gulf Coast,

which is subject to periodic weather disruptions. Production from Canada has grown

significantly in recent years and all forecasts show that growth accelerating. The crude

oil produced from the Canadian oil sands is heavier and more viscous than traditional,

U.S. domestic crude oil production, thus requiring changes to certain existing pipelines to

facilitate the transportation of the Canadian crude oil.

C. It will effectively replace 29 miles of the existing 16-inch pipeline

from MPL’s Samaria Station, Monroe County, Michigan to the proposed Huron River

Junction, in southern Wayne County, Michigan.

D. It will have a capacity of up to 144,000 barrels of heavier slate crude

oil per day based upon the system specifications and the anticipated slate of material

being transported. The average capacity on the existing Samaria to Detroit pipeline is

120,000 barrels per day, of which 25,000 barrels per day is the heavier Canadian crude

oil. However, the existing pipeline can only transport 90,000 barrels per day of the

heavier Canadian crude oil. The increase of 54,000 barrels per day in pipeline capacity

will facilitate changes in the anticipated slate of material being transported allowing a

75,000 barrel per day increase (from an average of 25,000 barrels per day to at least

{224769.DOC 2} 5

100,000 barrels per day) in the amount of heavy Canadian crude oil being transported

through this pipeline.

E. It will be designed, constructed, installed, tested, operated and

maintained to meet or exceed applicable pipeline safety requirements including, but not

limited to, those specified in 49 CFR Part 195 to protect the public health and safety and

minimize the environmental impact of the proposed pipeline.

11. Pursuant to Rule 601(2)(b) of the MPSC’s Rules of Practice and Procedure, R

460.17601(2)(b), the cities, villages or townships crossed by this proposed pipeline

segment include the Townships of Bedford, Ida, LaSalle, Raisinville, Frenchtown

Charter and Ash in Monroe County and the City of Flat Rock and the Township of Huron

Charter in Wayne County.

12. Pursuant to Rule 601(2)(c) of the MPSC’s Rules of Practice and Procedure, R

460.17601(2)(c), the nature of the service to be furnished is set forth in Paragraph No. 10

above.

13. Pursuant to Rule 601(2)(e) of the MPSC’s Rules of Practice and Procedure, R

460.17601(2)(e), a full description of the proposed pipeline construction, including the

manner in which it will be constructed, is set forth in Exhibits A-2 and A-3.

14. Pursuant to Rule 601(2)(f) of the MPSC’s Rules of Practice and Procedure, R

460.17601(2)(f), other utilities rendering similar service in the general area of the

proposed pipeline include Buckeye Pipe Line Company, Sunoco Logistics Partners L.P.,

Maumee Pipeline System and Enbridge’s Lakehead System.

15. Although MPL intends to acquire right-of-way and easement grants from the

property owners and permits and licenses, where applicable, throughout the proposed

pipeline route, MPL requests the MPSC’s certification in the interest of expedition and

efficiency should the exercise of eminent domain authority become necessary.

{224769.DOC 2} 6

16. The proposed pipeline and associated facilities will be designed, located,

constructed, installed, tested, operated and maintained in accordance with the

requirements of all applicable federal, state and local laws, rules and regulations.

17. Upon completion of the construction and after the pipeline is commissioned,

MPL will continue to operate and maintain the proposed pipeline in compliance with

applicable pipeline safety requirements including, but not limited to, those specified in 49

CFR Part 195.

18. MPL estimates that the cost of the proposed pipeline will be $85 million as

set forth in the testimony of Don Malarky which will be filed in this proceeding.

19. MPL anticipates that the proposed pipeline project will result in hundreds of

temporary jobs for the duration of pipeline construction, which is expected to last four to

six months. Based on the anticipated cost of the proposed pipeline, MPL estimates it will

pay approximately $1.7 million annually in property taxes beginning the year when the

proposed pipeline is constructed. These annual property tax payments will be allocated

among the governmental units, based on pipeline mileage, through which the proposed

pipeline passes. In addition, proposed modifications to MPC’s Detroit, Michigan refinery

would provide work for the construction trades on a temporary basis and would create

new jobs once the upgrades are complete.

20. The proposed pipeline will be routed, constructed, installed, tested, operated

and maintained to minimize the physical and environmental impact and economic

damage. The proposed pipeline route takes into account environmental considerations,

existing and anticipated land use, and existing rights-of-way. MPL will be submitting

any necessary permit applications to the local, state and federal agencies having

jurisdiction over the proposed pipeline project and will comply with the conditions of

such permits. A comprehensive Environmental Impact Report is attached to Jerry

Henry’s testimony which will be filed in this proceeding.

{224769.DOC 2} 7

21. Once the proposed pipeline is operational, approximately 29 miles of the

existing 16-inch pipeline will be idled and purged with nitrogen, however, MPL will

continue to maintain the pipe and the rights-of-way.

22. MPL accepts the requirements imposed by 1929 PA 16 for crude oil and

petroleum pipelines.

WHEREFORE, MPL respectfully requests that this Honorable Commission,

acting under its authority pursuant to 1929 PA 16, grant the following relief:

1. Find that the proposed pipeline is just, reasonable and in the public interest;

2. Issue its Order granting MPL the authority to design, construct, install, test,

operate, maintain and own the proposed pipeline for the transportation of crude oil and

petroleum as described herein; and,

3. Grant such further relief as the Commission deems necessary and appropriate.

Respectfully submitted,

Dated: March 21, 2007 By:

William A. Horn (P33855) Mika Meyers Beckett & Jones PLC Attorneys for Petitioner 900 Monroe Avenue, NW Grand Rapids, MI 49503 Telephone: (616) 632-8000 Facsimile: (616) 632-8002 E-mail: [email protected] James W. Gearheart Marathon Petroleum Company LLC 539 South Main Street Findlay, Ohio 45840 Telephone: (419) 421-2386 Facsimile: (419) 427-3534 E-mail: [email protected]

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Map Source: ESRI, Maps & Data DVD, 2006.

Exhibit A-1: General Location Map

Proposed RouteProposed Samaria-Detroit Crude Expansion

Monroe & Wayne Counties, MichiganFebruary 2007K0 31.5

Miles

Mapping by Glacier Fox GIS Inc (www.glacierfoxgis.com)Map ID: 050011_DHOUP_vic_prop_02-13-2007.mxd/02-22-2007

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Rev I Dated 02-13-2007

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Donna Sue Henry

Text Box

Exhibit A-1

{227686.DOC}

Exhibit A-2

General Engineering Specifications

I. Operating Data Length of Pipe: approximately 29 miles Liquids to be Transported Crude Oil, Petroleum Maximum Design Operating Pressure 1,440 PSIG Maximum Design Operating Capacity approximately 144 MBPD1

II. Design Applicable Codes

1. ASME B31.4 Pipeline Transportation Systems for Hydrocarbons, Liquid Gas, Anhydrous Ammonia, and Alcohols;

2. USDOT Rules and Regulation, Transportation of Hazardous Liquids by Pipeline (49 CFR Part 195); and

3. Applicable American Petroleum Institute (API) Standards

III. Specifications Diameter 24” Wall Thickness .375”2 Grade API 5L, X-65 Specified Minimum Yield Strength 65,000 PSI Type of Pipe ERW Joint Length 40’ and/or 80’ Coating Fusion Bonded Epoxy (FBE)

Coated. PowerCrete overcoat for HDD and bore pipe.

Rights of Way 50’ wide easement and a 50’ setback

from the centerline of the new pipe. 1 Capacity is dependent upon batch slate. 2 Minimum wall thickness. Heavier wall will be used for road crossings and HDDs.

{227686.DOC}

Depth of Cover

Location Normal Soil Consolidated Rock

Non-cultivated land 36” 24” Cultivated land 48” 24” Residential land 48” 24” Public road surface 48” 48” Railroads, bottom of tracks (cased)

66” 66”

Railroads, bottom of tracks (uncased

72” 72”

River drain, and stream crossings, including road side and railroad ditches

60” 60”

Exhibit A-3

{227687.DOC}10/25/2006 MPSC Application Exhibit A-3 - Construction Stds (227687).DOC Page 1 of 45

MARATHON PETROLEUM COMPANY LLC MARATHON PIPE LINE LLC

STANDARDS

Standard

No:

Title

Standard Category

Standard Type

Respon.

Org.

Revision

Date

Location (Manual)

MPLCON 001

PIPELINE CONSTRUCTION CON SPECIFICATION PI Rev. 2 10/25/2006

STANDARDS

Approved By: R. D. Turley Records Retention: Custodian - OPER/PPGM/84C

Copies - Current Copy Only Title: Pipeline Integrity Manager Update & Review Requirements (Max): 3 Years

Effective Date:__9/16/2002 “STANDARD SPECIFICATION” STATEMENT:

Marathon Pipe Line LLC (MPL) shall set forth recommended material, performance and equipment specifications that have proven to be a best practice through time and experience. Deviation from this specification will only be allowed with the express permission of the MPL Pipeline Integrity Manager or his designee.

PURPOSE:

This procedure is to establish uniform practices for Pipeline Construction and to meet or exceed all applicable sections of 49CFR195 and ASME B31.4 “Pipeline Transportation Systems for Liquid Hydrocarbons and Other Liquids”.

SCOPE:

The Specifications for “Pipeline Construction” prescribes the minimum requirements for the workmanship and materials used in the construction and assembly of DOT jurisdictional, onshore hazardous liquid pipeline facilities for MPL.

MAINTENANCE OF STANDARD: The Pipeline Integrity Manager is responsible for the maintenance of this Standard.

PROCEDURE:

Index: 1.0 GENERAL

1.1. General Specification for Pipeline Construction

1.2. Definitions

1.3. Codes and Regulations

1.4. Inspection of Work and Materials

1.5. Conflicts, Errors, and Omissions

1.6. Responsibility

2.0 NORMAL CONSTRUCTION

2.1. Easements and Permits

Exhibit A-3


2.2. Right-of-Way

2.3. Surveying

2.4. Substructures

2.5. Fence Gaps and Repairs

2.6. Clearing and Grading

2.7. Blasting

2.8. Temporary Crossings

2.9. Ditching

2.10. Minimum Clearances

2.11. Spoil Piles from Excavation

2.12. Double Ditching

2.13. Notifications

2.14. Materials

2.15. Stringing

2.16. Alignment Changes (Bends)

2.17. Welding

2.18. Alignment of Seams

2.19. Closing Ends of Line

2.20. Radiographic Inspection of Welds

2.21. Cleaning and Coating Field Joints (Yard Coated Pipe)

2.22. Laying, Coating Inspection, and Lowering

2.23. Padding and Backfill

2.24. Hydrostatic Testing

2.25. Cleanup and Restoration

2.26. Seeding, Sodding, Planting

2.27. Damages

2.28. Settlement of Damages

2.29. Records

3.0 SPECIAL CONSTRUCTION

3.1. Exposing Existing Pipelines and Appurtenances

3.2. Hot Taps

3.3. Field Connections & Tie-Ins

3.4. Appurtenances and Piping Assembly

3.5. Materials for Drain, Air, and Water Piping

3.6. Rock Excavation

3.7. Road and Railroad Crossings

3.8. River and Other Waterway Crossings

Exhibit A-3


3.9. Cathodic Protection

3.10. Special Construction Records

3.11. Painting

4.0 DELAYS

4.1. Weather

4.2. Right-of-Way

4.3. Lack of Material

4.4. Completion Date

4.5. Move Out and Move In

5.0 SAFETY

5.1. CONTRACTOR’s Safety Program

5.2. Special Safety Considerations for Pipeline Work

6.0 ATTACHED DRAWINGS Drawing STDM033 Wire Fence Restoration Figure 4.3.2 Drawing STDM042 Topsoil Conservation and Trench Crowning Sequence Figure 4.3.3 Drawing STDM035 Topsoil Stockpiling on Slopes Requiring Cut and Fill Grade Figure 4.3.4 Drawing STDM049 Drain Tile Probe Figure 4.5.4 Drawing STDM037 Mainline Backfill Sack Breakers Figure 4.14.5-1 Drawing STDM038 Sack Breakers for Washout Prevention Figure 4.14.5-2 Drawing STDM039 Set-on Concrete Weights Figure 5.1.3 Drawing STDM040 Plastic Slat Pipe Coating Figure 5.1.4-1 Drawing STDM041 Bolt on Concrete Weight Figure 5.1.4-2 1.0 GENERAL 1.1 General Specification for Pipeline Construction The "General Specifications for Pipeline Construction" prescribes the minimum requirements for the

workmanship and materials used in the construction and modification of pipelines. All work must comply with requirements of any authoritative agencies, construction drawings and these specifications.

1.2 Definitions The term "OWNER" shall mean MPC, its subsidiaries, and affiliates. The term "CONTRACTOR" shall mean the firm or organization, including the CONTRACTOR’s

employees, agents, and other representatives, and the employees, agents, and other representatives of its subcontractors, which has agreed/contracted to provide labor, material, and equipment necessary to construct the pipeline as described by this Specification and attachments. The OWNER shall be consider a CONTRATOR where applicable.

The term "OWNER REPRESENTATIVE" shall mean the person assigned by the OWNER as its

representative.

The term “OWNER INSPECTOR” shall mean the person assigned by the OWNER or OWNER REPRESENTATIVE as their designated inspector.

Exhibit A-3


The term "SUBCONTRACTOR" shall mean the firm or organization that has agreed to perform a

portion of the work contracted to the CONTRACTOR. The term "CONTRACTOR’s MANAGER" shall mean the person assigned by the CONTRACTOR

as the Manager/Superintendent, or his designated representative. The term "PIPELINE" shall mean the system of connected pipe, including fittings and valves, coating,

right-of-way, and other associated items required to provide a continuous conduit between pumping and/or delivery points.

The term "EXTRA WORK" shall mean that work not included in this Standard’s description of work,

but is work requested of the CONTRACTOR by the OWNER REPRESENTATIVE.

The term “MOVE AROUND” shall mean physically loading out equipment and mobilizing to a new location along the right-of-way. Roading or tracking equipment down the right-of-way is not considered a MOVE AROUND. The term MOVE AROUND only applies if the OWNER caused a stoppage of work.

The term "SPECIFICATIONS" as used herein refers to the OWNER’s Standards, as referenced in this document MPLCON001 Pipeline Construction Specifications, Codes, Regulations, and Standards described in Section 1.3 of this document, and all other forms or documents comprising the contract between the OWNER and the CONTRACTOR for the work described herein. Throughout this specification, the words "may", "should", "shall", and "must” have specific meanings as follows:

"May" is used where alternatives are equally acceptable.

"Should" is used where a provision is preferred. "Shall" and "Must" is used where a provision is mandatory.

The term "Scope of Work" used herein refers to any job specific requirements set forth by the

OWNER or OWNER REPRESENTATIVE, in addition to the general requirements set forth in this specifications.

1.3 Codes and Regulations All construction shall meet or exceed the requirements of the latest edition or the codes and standards

referenced in this section. All construction performed will comply with federal, state, or local, statutes, codes, or regulations.

OWNER’s Standards MPLCON002 Pipeline and Below-Grade Coatings MPLCON006 Onshore Surveys MPLCON007 Radiographic Inspection & Documentation TNLCON016 Facility Fencing MPLCON010 Visual Inspection MPLCON011 General Specifications for Cleaning and Drying Pipelines MPLCON013 Directionally Drilled Crossing Installation MPLCON015 Road Construction & Foundations MPLCON016 Production Welding

MPLCON017 Crossing Installation: Un-Cased, Cased, Mechanically Reinforced MPLCON018 Cathodic Protection Test Stations MPLCON019 Thermit Welding MPLCON021 Hydrostatic Test Execution

Exhibit A-3


TNLCON022 Paint, Linings, & Above Grade Coatings MPLCON031 Production Welding Procedures MPLCON032 Production Welder Qualification MPLDGN002 Station & Mainline Piping MPLDGN003 Hydrostatic Test Design & Documentation MPLDGN006 Induction Bend Design MPLHES306 Lockout/Tagout Authorized, Affected and Other Employee MPLHES313 Trenching & Excavation Safety MPLHES316 Hazard Communication Plan TNLHES003 Hot Work Permit Program TNLSFT002 Contractor Safety Program MPLMNT001 Pipeline Repairs MPLMNT004 Pipe Replacement MPLMNT005 Operating Pressures When Excavating Near In-Service Pipelines MPLMNT019 Signage Guidelines MPLMNT024 General Conditions and Guidelines for Right-of-Way Activity MPLMNT030 In-Service Welding MPLMNT034 In-Service Welding Procedures MPLMNT121 In-Service Welder Qualification MPLMNT042 Hot Tapping MAPHES110 Incident Investigation

MPLOPR002 Landowner Relations MPLOPR010 Land & Pipe Management Report Referenced Publications ASME (American National Standards Institute) ASME B31.4-2002 “Pipeline Transportation Systems for Liquid Hydrocarbons and Other

Liquids” (October 2002) API (American Petroleum Institute) API Standard 1104, “Welding Pipelines and Related Facilities,” (19th edition, 1999

including October 31, 2001 errata) API Specification 5L, “Specifications for Line Pipe,” (43rd edition, 2004)

DOT (United States Department of Transportation) 49 CFR, Part 195, Transportation of Hazardous Liquids by Pipeline OSHA (Occupational Safety and Health Administration) 29 CFR, Parts 1900 - 1999 NFPA (National Fire Protection Association) 10, Standard for Portable Fire Extinguishers 30, Flammable and Combustible Liquids Code 51B, Standard for Fire Prevention in Use of Cutting and Welding Processes 70, National Electrical Code 241, Safeguarding Construction, Alteration, and Demolition Operations

In case of conflict between these codes and regulations, the OWNER shall establish the order of priority.

1.4 Inspection of Work and Materials It is the responsibility of the CONTRACTOR to ensure compliance with the contract between the

OWNER and CONTRACTOR in matters pertaining to the workmanship and materials used in

Exhibit A-3


construction. It is the OWNER REPRESENTATIVE’s responsibility to check that compliance with the contract has been achieved.

The OWNER shall always have access to the work and the CONTRACTOR shall provide proper

facilities for inspection. If the SPECIFICATIONS, laws, ordinances, or any public authority require any work or material to be tested or approved, the CONTRACTOR shall give the OWNER REPRESENTATIVE timely notice of its readiness for inspection, or if the inspection is by another authority other than the OWNER REPRESENTATIVE, the date fixed for such inspection.

If any work should be backfilled or covered up without approval or consent of the OWNER

REPRESENTATIVE, it must, if required by the OWNER REPRESENTATIVE, be uncovered for examination at the CONTRACTOR’s expense.

1.5 Conflicts, Errors, and Omissions Any conflict in this Standard will be reported immediately to the OWNER REPRESENTATIVE. In

the case of conflict between this Standard, referenced publications, or other associated documents, the most stringent requirements shall apply. If it is not possible to comply with all documents by applying the most stringent requirements, the following order of precedence shall apply:

Applicable law Regulations Codes or standards having the force of law This Standard Contract document Should the CONTRACTOR find discrepancies in, or omissions from, the SPECIFICATIONS, or

should they be in doubt as to their meaning, they should immediately notify the OWNER REPRESENTATIVE.

The CONTRACTOR shall request any information required to prepare a bid. The OWNER will

provide the information, if available. If the information is not received or supplied, it is the CONTRACTOR’s responsibility to decide to bid the project or decline.

1.6 Responsibility

OWNER

The OWNER will provide all restrictions and other considerations for use of the right-of-way,

available at the time of bid, on either the alignment sheets or the Construction Line List/Land Owner Exception List.

The OWNER will be responsible for staking the centerline and limits of the right-of-way in

accordance with Standard MPLCON006 Onshore Surveys. The OWNER will be responsible for restaking the line if livestock, farming, or other reasons beyond

the CONTRACTOR’s control destroy stakes. The OWNER, unless stated otherwise, will be responsible for delivery of pipe, fittings, flanges, and

valves to points designated on the job specification sheets as scheduled, and will be responsible for the condition of the material on arrival.

The OWNER will be responsible for radiographic inspection. The OWNER will provide materials listed in Section 2.14.1 of this document.

Exhibit A-3


OWNER REPRESENTATIVE The OWNER REPRESENTATIVE shall approve an Extra Work Order in advance of any work

considered to be extra work by the CONTRACTOR. The OWNER REPRESENTATIVE may submit an Extra Work Order to the CONTRACTOR for

repair of defects in material furnished by the OWNER. The OWNER REPRESENTATIVE will provide material control in accordance with Section 2.14.3 of

this document.

The OWNER REPRESENTATIVE will be responsible for ensuring all applicable environmental and construction permits are obtained.

CONTRACTOR The CONTRACTOR’s Manager (individual) shall be designated by the CONTRACTOR. This

Representative shall be present at all times when work is being performed and until completion of the project.

The CONTRACTOR shall familiarize himself and his personnel with characteristics and hazards of

any petroleum product(s) likely to be encountered in hot tapping or other operations. The OWNER REPRESENTATIVE shall provide this information to the CONTRATOR in the form of Material Safety Data Sheets. The CONTRACTOR shall conduct operations in accordance with applicable safety codes and regulations.

The CONTRACTOR shall at all times be solely responsible for obtaining the most recent revision of

any required specification. A copy of all applicable specifications shall be kept at the job site by the CONTRACTOR at all times.

The CONTRACTOR shall be responsible for the CONTRACTOR labor and material supplied.

Within the warranty period, if defective material or labor is discovered, same will be repaired or replaced with the OWNER REPRESENTATIVE approval at no cost to the OWNER.

Unless stated otherwise, the warranty period will be one year after start of commercial operations. If

different phases of the pipeline installation have different dates when commercial operations begin, then the warranty period start and finish dates for each of the segments will be different.

The CONTRACTOR shall be responsible for his subcontractors, including compliance with

regulations and safety. The CONTRACTOR shall comply with all restrictions and other considerations specified in the

rights-of-way agreements and Construction Line list. The CONTRACTOR shall document all landowner contacts on the Land & Pipe Management Form

(LPMRMPL) per Standard MPLOPR010. Where the location of power poles, telephone poles, and guy wires, including anchors, impedes the

construction of the pipeline, they shall be moved at the CONTRACTOR’s expense. The CONTRACTOR will obtain permission and coordinate the moving of such items.

The CONTRACTOR shall keep the right-of-way free of trash and debris; e.g., food wrappers,

drinking cups or cans, discarded welding rod, rags, etc. The CONTRACTOR shall have a state contractor’s license, any local construction permits, any

worker permits, including United States citizen status, and any vehicle permits, such as wide load.

Exhibit A-3


The CONTRACTOR shall be responsible for locating buried pipelines and utilities. The CONTRACTOR shall be responsible for notifying the appropriate "One-Call" organization(s) of

his intent to excavate, bore, drill, blast or other similar activities associated with the installation of an underground pipeline in the time specified by the local One-Call. The CONTRACTOR shall also give in writing to the proper authorities (State, County, City, U.S. Army Engineers, U.S. Coast Guard and/or any other authority, board, railroad, or political subdivision having jurisdiction over any part of the work) such notification as may be mandatory or necessary in connection with the commencement, suspension, resumption and completion of the work.

The CONTRACTOR shall document all One-Call and Proper Authorities notifications and forward to the OWNER.

If damage to third party utilities occurs, it will be the CONTRACTOR’s responsibility to repair the

damage and return the facilities to full service as quickly, and as safely, as is possible without the involvement of the OWNER. All such repairs will be for the CONTRACTOR’s account.

The CONTRACTOR shall schedule work activities to minimize disruption of activities at offices,

businesses, churches, schools, and residencies. The CONTRACTOR shall accept responsibility for all OWNER-supplied material, once he takes

possession for performance of his contractual responsibilities. The CONTRACTOR shall furnish the material listed in Section 2.14.2 of this document. The CONTRACTOR shall complete all work in accordance with the CONTRACTOR’s construction

schedule, as approved by owner. The CONTRACTOR shall maintain the construction equipment in an operable condition.

The CONTRACTOR shall install and maintain all sediment and erosion controls in accordance with the project Soil and Erosion Control Plan.

CONTRACTOR’s MANAGER The CONTRACTOR’s MANAGER, in conjunction with the OWNER REPRESENTATIVE, will

tally the pipe as it is loaded, unless stated otherwise. The CONTRACTOR’s MANAGER shall be responsible for material, equipment, and labor required

to perform the project requirements. The CONTRACTOR’s MANAGER will request material with sufficient lead-time for transport to

the job site. The CONTRACTOR’s MANAGER will immediately inform the OWNER REPRESENTATIVE of

any delay that may affect the job schedule. The CONTRACTOR’s MANAGER will review progress and the job schedule with the OWNER

REPRESENTATIVE daily. The CONTRACTOR’s MANAGER will submit a list of subcontractors to work for the

CONTRACTOR to the OWNER for approval.

Exhibit A-3


The CONTRACTOR’s MANAGER shall submit an Extra Work Order, covering all labor and material, to the OWNER REPRESENTATIVE for approval prior, to the start of extra work, should extra work be required.

The CONTRACTOR’s MANAGER shall submit invoices for Extra Work in the same manner as

invoices for other work. The CONTRACTOR’s MANAGER shall notify the OWNER REPRESENTATIVE of any repairs,

that are the OWNER’s responsibility, on the material transfer report prior to the CONTRACTOR taking possession; otherwise repairs or replacements shall be at the CONTRACTOR’s expense.

2.0 NORMAL CONSTRUCTION 2.1 Easements and Permits The OWNER REPRESENTATIVE will secure and furnish permits and licenses including, but not

limited to, the following: NPDES Permit, Construction/Building Permit(s), Sedimentation Control and Storm Water Permit, Environmental Agency (local, state, and federal) Permit(s), permits for road, railroad, stream, river, and wetlands crossings, and all necessary right-of-way easements that shall be necessary for the construction of the pipeline. Right-of-way, for the purpose hereof, is typically defined as a strip of land not more than 50' in width, except in those locations where the OWNER’s easements for right-of-way or permits allow lesser or greater width, or the particular circumstances at particular locations necessitate restriction.

The CONTRACTOR shall not start work at any location prior to obtaining the OWNER

REPRESENTATIVE’s approval, and shall provide at least three (3) working days notice prior to starting work unless otherwise approved by the OWNER REPRESENTATIVE.

The CONTRACTOR shall be responsible for obtaining all permits, not provided by the OWNER, as

necessary for construction. The CONTRACTOR shall secure such permits from public or private agencies or parties as are required for the movement of its vehicles and equipment. The CONTRACTOR shall comply with all legal orders, regulations, and requirements of all governmental authorities including federal, state, county/parish, and local laws. The CONTRACTOR shall comply with safety requirements of all industrial concerns while engaged in construction within or adjacent to said industrial properties. The CONTRACTOR shall confine its fieldwork to the lateral limits of the COMPANY’s right-of-way easements as described in the Scope of Work.

The CONTRACTOR, unless stated otherwise, shall be responsible for obtaining all permits from the appropriate authorities required for gathering and hauling the water used for hydrostatic pressure testing. The CONTRACTOR shall also be responsible for obtaining all permits from the appropriate authorities required for its operation and for the employment of its personnel. The CONTRACTOR shall be responsible for notifying the appropriate authorities or parties before beginning any work covered by a permit or agreement that the CONTRACTOR obtained.

The CONTRACTOR shall comply with all federal, state, and local laws and regulations for the

placing of danger signals and flares at main road crossings, and shall furnish, install, and maintain all necessary barricades, warning signs, lights, etc., for the safety of traffic, regardless of whether they are required by governing authorities or not. The CONTRACTOR shall provide guardrails if requested by the OWNER or governing authorities. If special equipment is required for safety purposes, the OWNER will identify this in the Scope of Work.

2.2 Right-of-Way In general, the OWNER will obtain a right-of-way for construction, as specified in Section 2.1 of this

document. Right-of-way will be provided on the OWNER’s construction drawings or in the Scope of Work.

Exhibit A-3


A list of right-of-way restrictions, which defines the agreements between the OWNER and landowner, will be furnished to the CONTRACTOR prior to commencement of construction, if any exist. The CONTRACTOR shall comply with these right-of-way restrictions. It is to be understood that where necessary, due to right-of-way agreements and/or physical barriers, the location of the proposed pipeline and clearing requirements may vary. The CONTRACTOR shall be required to confine their operations to the width as shown on the right-of-way restrictions. Any damage caused beyond this width shall be repaired at the CONTRACTOR’s expense.

Arrangements for additional construction space used by the CONTRACTOR shall be made by the

CONTRACTOR at the CONTRACTOR’s own expense. Any such agreements entered into by the CONTRACTOR shall be in writing, and the CONTRACTOR shall furnish one copy of all such agreements to the OWNER INSPECTOR prior to entering property.

The right of ingress and egress to the right-of-way, furnished by the OWNER shall be limited to

points where such right-of-way intersects public roads (except limited access highways), unless other access is provided by the OWNER. Arrangements for other access used by the CONTRACTOR shall be made by the CONTRACTOR, at the CONTRACTOR’s own expense. Any such agreements entered into by the CONTRACTOR shall be in writing, and the CONTRACTOR shall furnish one copy of all such agreements to the OWNER INSPECTOR prior to entering property.

The CONTRACTOR shall not allow its employees to hunt, fish, litter, or have firearms on the right-

of-way, work areas, or storage areas. 2.3 Surveying The OWNER will set surveyor’s stakes to establish the alignment of the pipeline and, unless

otherwise prescribed in the Scope of Work, these stakes will mark the center of the pipeline ditch. The CONTRACTOR shall offset these stakes for the proposed ditch. The stakes will be provided at such regularity that the continuity of the line may be maintained throughout.

The OWNER reserves the right to make changes in the pipeline alignment, and the CONTRACTOR

shall construct the line in accordance with such revised alignment. After the proposed location of the line has been located and staked by the OWNER, the

CONTRACTOR shall be held responsible for the preservation of all stakes and marks, and if any of the stakes are carelessly or willfully destroyed or disturbed by the CONTRACTOR, the cost of replacing them shall be borne by the CONTRACTOR.

All surveying shall be performed in accordance with the OWNER’s Standard MPLCON006 Onshore Surveys.

2.4 Substructures The CONTRACTOR shall be responsible for locating all existing pipelines and substructures, and

take precautions to avoid damage to drain lines, pipelines, telephone lines or cable, or other properties of the OWNER or others, crossing or adjacent to the pipeline. The CONTRACTOR shall be responsible for repair of all damage. The OWNER will make available on the plans and drawings all information in its possession concerning substructures, but will not guarantee the accuracy or completeness of such information. The CONTRACTOR shall make all necessary arrangements for locating, cutting, replacing, or repairing all substructures with their owners.

2.5 Fence Gaps and Repairs Before proceeding with construction operations, the CONTRACTOR, having first ascertained from

the OWNER that permission has been secured from the property owner, shall furnish suitable materials for and shall install temporary gaps in all fences crossed by the rights-of-way, except woven

Exhibit A-3


wire fences of the cyclone type, or other ornamental types, in which splices or repairs would detract from strength or appearance.

If woven wire fences are encountered, they must not be cut unless consent of the property owner and

tenant is first obtained, and adequate arrangements made for bracing and rebuilding. Before cutting ordinary fence wires, the CONTRACTOR shall build sturdy H-type braces on each

side of the gap and securely fasten the fence wires to them to prevent slack occurring in the fence. The CONTRACTOR shall be responsible for damages caused by slack in wire resulting from inadequate bracing or inadequate fastening of wires.

The CONTRACTOR shall be responsible for keeping gates closed at all times during performance of

work. The CONTRACTOR shall prevent livestock from entering or leaving properties, and shall furnish watchmen, if necessary, to enforce compliance with this instruction. Gaps shall be kept securely closed, except during passage of men and equipment, or when attended. Upon request of the OWNER, the CONTRACTOR shall provide a watchman during working hours at certain gaps to prevent the passage of livestock. The CONTRACTOR shall be responsible for all damage resulting from its failure to close gaps or gates and properly maintain such passages.

The CONTRACTOR shall be responsible for all materials and the installation and removal of temporary fencing, if necessary, to isolate livestock from the construction site, per landowner and/or livestock owner agreement. Areas shall be identified by the OWNER, and will be noted on the alignment sheets (or construction line list).

After completion of other work, the CONTRACTOR shall permanently repair or replace all fences in

which gaps have been cut and shall install permanent gates where so specified in the Scope of Work. Materials used for repairs shall match the original fence as nearly as practicable in gauge, mesh, style, and appearance, and shall equal or exceed the original in size and strength. All wood used shall be treated. The OWNER shall furnish all permanent gates specified in the Scope of Work but the CONTRACTOR shall furnish all other materials required for installing gaps and repairing fences as shown on attached Drawing STDM033.

2.6 Clearing and Grading The CONTRACTOR shall do such clearing and grading on the Construction Right-of-Way as is

necessary to properly perform the work and to provide access to the pipeline during the work. The CONTRACTOR may have to grade off sharp points or hollows in order to allow the pipe to bend and lay within the degree of curvature as set forth in these Specifications, and may have to drill, blast, and excavate rock in order to build an adequate work way along the pipeline route. Grading outside of the construction right-of-way is prohibited, except as hereinafter specified. Right-of-way cuts in hillsides shall be sloped as required by the OWNER REPRESENTATIVE, unless the OWNER or landowner requires that cuts shall be backfilled.

The CONTRACTOR shall clear and grub the entire width of the permanent right-of-way for the entire

continuous length of the pipeline route contracted. This also includes “vertical side-trim” of any canopy that might overhang the permanent right-of-way. "Clearing" means the removal and proper disposition of all brush and undergrowth as directed by the OWNER REPRESENTATIVE. "Grubbing" means the removal and proper disposition of certain stumps and roots as is set further herein.

Outside of the permanent right-of-way, only that amount of right-of-way necessary for actual

installation of the pipeline shall be used, and work shall be performed in such manner as to minimize damage to the greatest degree. The CONTRACTOR shall be required to pile, burn, shred, or haul away all timber, grubbed stumps, brush, undergrowth, and roots cut or removed from the right-of-way to the satisfaction of the OWNER, landowner, tenant, and governmental agencies having jurisdiction in the areas concerned.

Exhibit A-3


The CONTRACTOR may use timber cut on the right-of-way in its construction work, if permitted by

agreement with the landowners. The CONTRACTOR shall not cut timber located off the right-of-way without written permission from the landowner and tenant or lessee. At the option of the landowner, the landowner or the tenant may remove timber at their own expense. All stumps shall be grubbed within the permanent right-of-way easement, unless prohibited by permit conditions such as in wetlands. The stumps outside of the permanent easement as part of the construction easement, may be grubbed or cut, but must not project more than 4" above the top of the ground. Holes from grubbing operations shall be backfilled and compacted by the CONTRACTOR.

In the event debris disposal is by burning, the CONTRACTOR shall have all fires attended at all

times, and shall extinguish all embers before leaving the site of the fires, and shall be responsible for any damage done by fire originating along the OWNER’s right-of-way caused by the CONTRACTOR personnel, or the CONTRACTOR’s equipment. All debris disposal by burning shall be subject to all rules of federal, state, or municipal authority. Where burning permits are required, such permits shall be obtained by the CONTRACTOR. The CONTRACTOR shall furnish one copy of the permits to the OWNER INSPECTOR, prior to burning.

The CONTRACTOR shall make every effort to preserve any property corners, or monuments,

encountered along the right-of-way. Any property corners, monuments, or markers destroyed by the CONTRACTOR shall be replaced to the satisfaction of the OWNER at the CONTRACTOR’s expense.

The CONTRACTOR shall exercise particular care to avoid damming, clogging with debris, changing

the course of, or interfering with the downstream or upstream use of any stream or watercourse crossing.

All grading shall be finished to maintain the original drainage or water flow conditions, as nearly as

practicable, and shall conform to regulations of the federal, state, county or other local authorities having legal jurisdiction. The CONTRACTOR shall not, in any case, grade or level the pipeline right-of-way over cultivated land, unless it is absolutely necessary, which shall be determined at the discretion of the OWNER REPRESENTATIVE. Gaps shall be left in the rows of spoil at intervals designated by the OWNER REPRESENTATIVE. Grading shall be performed as to permit compliance with the ditching requirements in Section 2.9 of this document, or in the Scope of Work without creating an excessive number of over bends and sags in the pipe.

The CONTRACTOR shall conduct their operations in such manner as to keep dirt and dust from

rising into the atmosphere as much as practicable under the circumstances. Where required by any governmental body having jurisdiction, the CONTRACTOR shall wet down the right-of-way during their operations to aid in eliminating dust.

The CONTRACTOR will give consideration to the residents along the pipeline route. Blocking the

use of drives or public roads shall be minimized. Construction near homes will be done during normal work hours avoiding, to the extent possible, disruption due to noise at night.

2.7 Blasting

Blasting is defined as excavation of materials that must be broken up by means of drilling and blasting before excavation can be accomplished. Loose rock, which is partially disintegrated or in poorly cemented form, which can be loosened with a ripper pulled by a dozer, or that can be removed with a backhoe, will not be considered as blast excavation. Prior to blasting, the CONTRACTOR shall supply to the OWNER, a detailed blasting and safety procedure for approval. Blasting by the CONTRACTOR will not be permitted without prior approval from the OWNER.

Exhibit A-3


The OWNER’s agreement to allow the use of explosives shall not reduce the CONTRACTOR’s liability for personal injury or property damages. The CONTRACTOR shall not resort to the use of explosives in grading the right-of-way, trenching, or other operations, except when it is absolutely necessary to do so, and only after obtaining prior written approval from the OWNER. The OWNER shall have the right to order the removal of rock by jackhammers only in areas where use of explosives might endanger adjacent pipelines, buildings, or other existing structures.

Occupants of all buildings, stores, houses, or places of business within 300' of the blasting site shall be notified by the CONTRACTOR. Farmers shall be notified in sufficient time to protect any livestock nearby before any work is done. The OWNER or OWNER REPRESENTATIVE shall be present during blasting. The CONTRACTOR shall blanket all shots in congested areas to prevent damage or injury by flying debris. Shots shall also be blanketed to prevent damage to telephone and electrical power facilities, and to prevent scattering of stones in tillable fields, pastures, and lawns. Great care shall be exercised by the CONTRACTOR to prevent damage to underground structures, such as cables, conduits, and pipelines. This also applies to springs and underground watercourses.

Extreme care must be exercised by the CONTRACTOR when blasting near roads, railroads,

waterways, airports and other public access facilities. Proper notifications must be made to governmental agencies to ensure the safety and protection of the general public and facilities. Where the pipeline route parallels or crosses an electrical transmission corridor, a potential hazard exists whereby a premature initiation of blasting could be triggered by the stray current from an electrical field that may exist at these locations. The CONTRACTOR shall assess the hazard and may have to restrict the use of electrical detonation caps to a safe distance from such corridors. To avoid premature detonation of any blast circuit due to static electricity, blasting operations shall be suspended under high wind, dust, snow and dry conditions. Similarly, all moving equipment, including trucks used in the vicinity of electrical blasting operations, shall be grounded. All blasting operations shall be suspended, and all persons and equipment withdrawn immediately, at the first indication of an approaching electrical storm. Mobile radio transmitters, cellular phones, and pagers shall be kept well away from areas of electrical blasting operations, and signs shall be posted to have all transmitters near the site turned off.

Where, during blasting operations, loose rock is scattered over the right-of-way or adjacent property,

the CONTRACTOR shall clean up such rock and dispose of it to the satisfaction of the OWNER, the landowner, and their tenants.

Personnel thoroughly familiar with such work shall conduct blasting operations. Where governmental

authorities require licensed personnel and blasting permits, such requirements shall be observed. The CONTRACTOR shall obtain necessary permits and shall make proper notification to regulatory authorities in advance of any blasting. The CONTRACTOR shall provide the OWNER INSPECTOR with copies of all applicable permits obtained for blasting, prior to the commencement of blasting.

Explosives shall be stored in a locked magazine in accordance with practices specified by the United

States Bureau of Mines. Detonating caps shall not be stored with explosives, but shall be stored in a separate place in accordance with Bureau of Mines standards. Explosives shall not be primed or fused until immediately before use, and shall not be allowed to lay overnight in drilled holes.

Blasting in streams shall be scheduled to allow ample time for notification of local fish and wildlife

authorities. When required, representatives from such agencies will be present during blasting operations.

Exhibit A-3


The depth of the trench through rock shall be sufficient to allow for a minimum of 6 inch thickness padding under the pipe, with the minimum specified cover over the pipe maintained. The CONTRACTOR shall make a daily record of the locations, measurements, and quantities of rock excavated and furnish a copy to the OWNER INSPECTOR. Upon completion of blasting each day, the CONTRACTOR shall provide the OWNER with a copy of their daily blasting report(s) that includes the following data for each blast.

• Blasting Contractor license number • Date, time, and location of blast • Hole size, spacing, depth, layout, and volume of rock in shot • Delay type, interval, total number of delays, and holes per delay • Explosive type, specific gravity, energy release, lbs. of explosive per delay, and total lbs. of

explosive per shot • Power factor

2.8 Temporary Crossings The CONTRACTOR shall do all necessary grading and bridging at road, stream, bayou, and ditch

crossings, and at other locations where needed to permit the passage of its equipment. Bridging or access to fords of ditches and small streams shall not be constructed so as to interfere with the flow therein or unduly damage the banks thereof. The CONTRACTOR is responsible for moving its equipment and personnel across or around watercourses.

The CONTRACTOR shall be responsible for construction of temporary bridges to facilitate the work.

No public ditches or drains shall be filled or bridged, or used for passage of equipment, until the OWNER has secured approval of the authority having jurisdiction over same. The OWNER INSPECTOR is to receive a copy of the documentation of such approval.

The CONTRACTOR shall provide and maintain suitable crossings over the ditch, where necessary, to

permit property owners or tenants to pass or to move stock or equipment. Such crossings shall be a minimum of 1,000 feet apart when they are on the same property. Substantial temporary bridges shall be provided and placed across the ditch wherever necessary to minimize the inconvenience to the public.

Roadways shall not be blocked without proper notification of state, county, or other road authorities,

local emergency response organizations, and schools concerned. Traffic must be detoured at proper locations, and no roadway may be closed for any longer than necessary. Barricades, lanterns, and other warning devices must adequately protect all ditches across roadways.

Flagmen shall be provided when required by local authorities or requested by the OWNER.

Any expenses incurred from changing the working side from one side of the ditch to the other will be at the CONTRACTOR’s expense, unless directed by the OWNER. The OWNER may elect to define working side prior to award of the Contract.

Exhibit A-3


2.9 Ditching The CONTRACTOR shall employ such equipment and methods as may be required to excavate the

ditch, regardless of the type of soil or rock encountered, and regardless of the depth of excavation required and shall furnish all materials and supplies necessary for the completion and maintenance of the ditch, including water control, shoring, coffer dams, and sheet piling. Ditching and excavations shall meet all federal and state OSHA rules and regulations, including those cited under Title 29, Part 1926, Subpart P - Excavations.

Trenching or excavating shall not be performed until the OWNER REPRESENTATIVE has given

approval for the work to begin. The CONTRACTOR shall use an electronic detector up to 500 feet in front of the trenching or

excavating activities to find buried pipelines or utilities. There will be an organized patrol of 100 percent of the right-of-way during clearing and ahead of trenching to find the buried lines and to find all warning signs to verify staking.

The ditch line shall conform to the survey line and shall be continuous and as straight as possible to

minimize line length. The OWNER must approve deviations of more than two feet from the survey line and straight ditch line.

The bottom of the ditch shall be cut to uniform grade. At over-bends and side-bends, the

CONTRACTOR shall excavate the ditch to allow proper clearance between the inside bend of the pipe and the bottom or side of the ditch. Minimum clearance between side of ditch and pipe at side-bends shall be 8".

Where ditching is across or adjacent to roads, highways, railroads, irrigation or drainage ditches,

creeks, rivers, ravines, and other watercourses, farm terraces, and at points where the contour of the earth may require extra depth, the CONTRACTOR shall excavate to such additional depth as may be necessary to meet the requirements of the OWNER, landowner, and any public or private authority having jurisdiction over same. The extra depth is defined as "extra depth trench." The CONTRACTOR will provide extra depth trench at these locations at no additional charge.

For extra ditch depth required by right-of-way agreements, the OWNER REPRESENTATIVE, or

permits which were not provided to the CONTRACTOR in the bid documents or otherwise in writing prior to the CONTRACTOR submitting his proposal, the following will be the basis for compensation:

No additional compensation for the first 6 inches of additional depth. The CONTRACTOR shall be paid additional compensation for the extra depth trench

actually required, as measured from sag bend to sag bend, by applicable unit prices for extra depth provided in the CONTRACTOR’s proposal.

The CONTRACTOR may trench to additional depth at other places than those required with the

OWNER REPRESENTATIVE’s approval but without additional OWNER compensation.

The angle of intersection between the pipeline crossing and the railroad or highway to be crossed should be as near to 90 degrees as practicable. In no case shall it be less than 30 degrees, unless approved by the controlling authority and the OWNER.

Where required to prevent damage to valuable shrubbery, trees, lawns or other facilities, the CONTRACTOR shall ditch by hand. The cost shall be included in his total cost. Where these items are not defined prior to the CONTRACTOR submitting his proposal, the CONTRACTOR will be compensated on a per foot basis as defined in the unit pricing section of his proposal.

Exhibit A-3


The CONTRACTOR shall dig the pipeline ditch to a depth to permit the amount of cover specified in the Scope of Work and to a minimum depth and width as follows:

MINIMUM WIDTH

Pipe Size (inches) 4

6

8

10

12

14

16

18

20

22

24

Minimum Ditch Width (inches)

20

22

24

26

28

30

32

34

36

38

40

MINIMUM COVER

LOCATION

FOR NORMAL EXCAVATION

(inches)

FOR ROCK

EXCAVATION (inches)

Industrial, commercial, and residential areas

48

30 Crossing of inland bodies of water with a width of at least 100 feet from high water mark to high water mark.

60

18

Public road and railroad drainage ditches

See Standard MPLCON017

See Standard MPLCON017

Any other areas

36

18

Ditch depth shall be measured from the average level of the original ground or the graded rights-of-way (whichever is lower) on each side of the ditch. Width shall be measured at the bottom of the ditch.

The CONTRACTOR’s attention is called to the fact that in some areas along a pipeline route, the

existence of a high water table may require the use of pumps, well-points, other means of de-watering and/or matting in order that the trench may be excavated and maintained. De-watering shall be in accordance with the project Soil and Erosion Control Plan.

The CONTRACTOR shall keep the ditch in good condition until the pipe is laid and the ditch closed.

The CONTRACTOR shall furnish and install material to maintain the sides of ditches and other excavations when there is a serious danger of caving.

The CONTRACTOR shall ensure the ditch is constructed according to OSHA specifications for side

slopes and shoring. At least one "competent" person, as defined by OSHA, shall be on-site during all excavations.

When possible, the CONTRACTOR shall schedule construction work to minimize time that the ditch is open. The CONTRACTOR shall be responsible for damages to any person or animal resulting from the improper guarding at open ditches during pipeline construction.

The CONTRACTOR, at the end of each workday, shall install security fence around all bore pit sites and areas of public accessibility per OSHA specifications.

The CONTRACTOR shall never place equipment in a position that could damage the pipe.

Exhibit A-3


The CONTRACTOR shall be required to maintain a safe ditch/hole, including the following where applicable:

Stair-stepping or terracing ditch walls Emergency exit routes out of ditch on both sides of pipe Control of spoil piles Observing various potential hazards such as weak walls Never working with bucket over laborers All edges of spoil piles shall be a minimum of 2' from the excavation. Comply with latest federal and state OSHA requirements for ditching and excavations

At least one qualified "competent" person, as defined by OSHA, shall be on-site during all excavations.

The CONTRACTOR shall inform the OWNER INSPECTOR of unusual findings or defects

discovered on excavated facilities, including, but not limited to: Mineral deposits on pipe Dents in pipe Foreign articles next to or touching pipeline Over-bend or sags Excavation in known areas of archaeological significance will not occur without the presence of the

OWNER REPRESENTATIVE and the representatives of any agencies having jurisdiction being given the opportunity to be present.

In the event fossil relics, artifacts, or other items of possible archaeological or cultural interest are

unearthed, the CONTRACTOR shall: Bring excavation to a halt. Notify the OWNER REPRESENTATIVE and, if present, the liaison officer for historical

preservation or the agency responsible for preservation of relics found at this site. Move around any such location until after the archaeological investigation is complete

and clearance from the appropriate agencies has been obtained. 2.10 Minimum Clearances The ditch shall be graded to pass under all pipelines, roads, and railroad crossings, ditches, canals,

streams, or any other obstruction unless otherwise specified by the OWNER. The CONTRACTOR shall notify, in writing, the OWNER and owners of all foreign underground structures at least 48 hours, as required by the local One-Call, or any other authority having jurisdiction prior to excavation near their facility.

In some cases, permission to pass over an existing line may be obtained. This will be noted on the

alignment sheets (or Construction Line List). Only the OWNER REPRESENTATIVE may approve such a crossing.

The CONTRACTOR shall maintain a minimum clearance of 24" between such lines or structures and

the line being laid, unless specified otherwise in the Scope of Work. Where this clearance is not feasible, the OWNER will specify the clearance to be maintained. The CONTRACTOR shall repair any pipe and/or pipe coating damaged by their work and shall exercise special care to protect and repair the pipe and/or pipe coating when in the vicinity of other pipelines. The method of repair must

Exhibit A-3


be approved by the OWNER and follow these specifications. The CONTRACTOR shall not be reimbursed for extra depth required to go under existing utilities. The CONTRACTOR shall not be reimbursed for repair work required on lines as a result of their excavation work.

Temporary underpinning, supports, and other protective devices necessary to keep interfering

structures intact shall be provided by the CONTRACTOR at no additional cost to the OWNER, and shall be of such design as to ensure against possible failure.

When pipeline construction is through low load bearing soil, such as encountered in marsh and water construction, the CONTRACTOR shall place a sufficient number of sack spacers between the pipeline and other structures or pipelines at no additional cost to the OWNER to ensure positive separation. When buoyancy is a concern, the CONTRACTOR shall install a sufficient number of buoyancy counter-weights consisting of concrete weights or other suitable commercially available material at locations specified by the OWNER.

Where drain tile is encountered, the CONTRACTOR shall excavate such that the pipeline may be laid

over or under such tile with a minimum clearance of 4" between the pipeline and the tile, or to such depths as required by a Right-of-Way Agreement.

When any drain tile is damaged, cut, or removed, a temporary repair shall be made immediately if

such repairs are determined necessary by the OWNER INSPECTOR. All tile shall be supported and replaced in accordance with attached Drawing STDM035.

Whenever a tile is cut, it shall be distinctly marked by placing a highly visible flag in the trench

spoil bank directly opposite such tile. This marker shall not be removed until the tile has been permanently repaired and such repairs have been approved by the OWNER INSPECTOR and land owner/tenant. Whenever a tile is cut and found plugged or damaged, the CONTRACTOR shall notify the OWNER INSPECTOR and landowner/tenant.

Before completing permanent tile repairs, all tile lines will be examined on each side of the trench for the entire width of the permanent right-of-way to check for tile that might have been damaged by construction equipment. The CONTRACTOR shall inspect the tile by inserting a drain probe, or equivalent, in accordance with Drawing STDM049. Backfill under tile plate after repair shall be tamped by hand. After the line is in the ditch and before backfilling, a permanent repair shall be completed to the satisfaction of the OWNER and landowner. Tile used in repair of drains is to be furnished by the CONTRACTOR, and shall be at least equivalent to existing tile.

2.11 Spoil Piles from Excavation The spoil bank from the ditching operation shall not be placed on any loose debris or foreign matter

that might become mixed with the soil excavated from the ditch. The spoil bank edge shall be located at least 2 feet from the excavation.

Across cultivated fields it may be necessary for gaps or openings to be cut in the spoil bank so that

excessive rains will not cause water to back up and flood the cultivated sections. Caution must be exercised in keeping open and useful all drain ditches and watercourses.

When the ditch is excavated through land where livestock is confined or through cultivated fields

where it is desirable for the landowner or tenant to have a passageway across the ditch, the CONTRACTOR shall provide safe, temporary bridges or provide other safe means of crossing the

Exhibit A-3


ditch at locations as required by the OWNER or landowner. Crossings, at a minimum, shall be in accordance with Section 2.8 of this document.

2.12 Double Ditching In areas where the topsoil is underlain by caliche or other type of subsoil that would be objectionable

to landowners if left on the surface, the CONTRACTOR shall double-ditch that portion of the line where required by right-of-way restrictions to do so. Double-ditching shall be defined as the process of removing all topsoil in such a manner that it can be stored separately from the subsoil before completing trench to proper depth and then backfilling the trench with the subsoil first and covering with topsoil after all subsoil has been replaced.

In areas where the topsoil is to be segregated, topsoil will be removed from the subsoil stockpile and trench areas. The depth of topsoil removal will include all of the “A” horizon down to the beginning of the subsoil “B” horizon, generally not to exceed a maximum of 12 inches. Topsoil removal up to a depth of 16 inches will be required in specially designated soils encountered along the pipeline right-of-way and identified in the construction plan. All topsoil will be stripped, stockpiled, and uniformly returned to restore the original soil depth profile in accordance with attached Drawing STDM042. During the clearing/construction phase, site-specific depths of topsoil stripping will be monitored and recorded by the COMPANY INSPECTOR. Where right-of-way construction requires cut-and-fill of the soil profile across grades, to the extent practicable, topsoil stockpiling will be located on the up-slope edge of the right-of-way in accordance with Drawing STDM035. Where topsoil cannot be separately stored on the up-slope side, suitable right-of-way space will be provided on the down-slope side to ensure the complete segregation of the topsoil from all cut-and-fill material.

2.13 Notifications Unless stated otherwise, the CONTRACTOR must notify all utility companies by telephone 48 hours

prior to the start of construction to advise them of the route of the proposed construction in order to obtain the assistance of companies in the location of their facilities, and so that they may be present during construction of the line in the vicinity of the utility company’s facilities.

The OWNER will give notification to the proper authorities (State, County, City, U.S. Army

Engineers, U.S. Coast Guard and/or any other authority, board, railroad, or political subdivision having jurisdiction over any part of the work) as may be mandatory or necessary in connection with the commencement, suspension, resumption and completion of the Work.

The CONTRACTOR shall verify that the OWNER has contacted the landowner prior to entering upon landowner’s property.

2.14 Materials 2.14.1 OWNER Supplied

Unless otherwise specified in the Contract Documents, the OWNER will provide the following material:

All pipe that will be welded into the pipeline. All pipe to be used as casing at road and railroad crossings. All miscellaneous pipe and fittings to be used for vents at road and railroad crossings. All cradles, insulators, seals, and vent tops to be used for road or railroad crossings.

Exhibit A-3


All valves that will be a permanent part of the pipeline system. All flanges and fittings above 2 inches that will be a permanent part of the pipeline

system. Coating material for all girth welds, and for repair of any holidays. If fusion bonded

epoxy joint coating material is to be used, the CONTRACTOR will supply the epoxy powder and equipment.

Shop fabricated pipe bends. All warning signs, milepost markers, and aerial markers, including backing boards and

fasteners. Rectifiers, anodes, permanent reference cells, and test stations for cathodic protection. Concrete weights or mechanical pipe anchors. All valve actuators. All flange bolts, nuts, gaskets, and flange insulating kits. All permanent fencing with gates to control access to above grade facilities. Any ditch stabilization materials that are manufactured items (plastic shapes used in

place of sand bags). All other appurtenances including pig-sigs, permanent pressure gauges, thermowells,

and closures.

2.14.2 CONTRACTOR Supplied

Unless otherwise specified in the attachments, the CONTRACTOR will provide the following material:

All expendable material such as welding rods, welding electrodes, fuel for equipment,

rags, solvent, paint brushes, etc.

All tools and equipment including hydrostatic test pumps, gauges, and calibration equipment, line drying air compressors, all welding and cutting equipment - excluding radiographic test equipment - all thermit welding kits in accordance with Standard MPLCON019 Thermit Welding, all molds (CA #15 cadwelds) for thermit welding cathodic protection test leads and rectifier bond leads to the pipe, and high voltage holiday detectors in accordance with Standard MPLCON002 Pipeline and Below-Grade Coatings.

All wire, sizes and colors, for cathodic protection test leads as depicted in Standard

MPLCON018 Cathodic Protection Test Stations. All insulated 4 AWG stranded copper wire for negative bond leads to rectifiers.

Coating material for all girth welds and for repair of all holidays. If fusion bonded

epoxy joint coating material is used, all the epoxy powder and equipment as specified in Standard MPLCON002 Pipeline and Below-Grade Coatings.

Exhibit A-3


All motorized equipment used to build the pipeline, including ditching and pipe laying machines, backhoes, trucks, dozers, etc., required to clean, lay, backfill, and cleanup.

All concrete poured on site such as valve supports, anchors, trap supports, etc.

All rebar and forming material for concrete poured on site.

All rock-shield, or equal, as specified in Standard MPLCON002 Pipeline and Below-

Grade Coatings. All additional select backfill for padding as required.

All primer and finish paint in accordance with Standard TNLCON022 Painting, Linings & Above Grade Coatings.

All temporary items such as skids and timbers to be used for pipe supports. All material required for the hydrostatic test, except the pipe for the test headers.

Any well points, sheet pile, trench box, diaphragm pumps, or mats that will be required to control water in the ditch or saturated soil conditions.

Road boring machines. All temporary bridging material. Tile and supports for tile repair as required. Flume pipe, culverts, sand, gravel, crushed stone, and rip rap. Fencing materials to repair cut fences as required per attached Drawing STDM033. Certified seed and fertilizer, as required. Cleaning, measurement, displacement, and drying pigs. Water for hydrostatic pressure test.

Equipment for storage, transportation and/or disposal of hydrostatic test water in accordance with permit requirements.

Pipe for boring road crossings without casing. Posts and concrete for aerial markers and river crossing signs.

Sand bags, or equivalent, for ditch stabilization or trench breakers/plugs on slopes and creeks.

Buried pipeline marker ribbon. Pipeline dust bags for line cleaning.

All necessary erosion/sediment control material as specified in the contract documents i.e., silt fence, straw/hay bales, stakes, etc.

2.14.3 Receipt, Inspection, Acceptance, and Repair of the OWNER Supplied Materials

Exhibit A-3


Upon receipt of any the OWNER supplied materials, the CONTRACTOR shall ensure that

the materials conform to the required specification and are suitable for their intended application. Any material damage or defects shall be reported to the OWNER REPRESENTATIVE within 24 hours of receipt of the subject material and prior to transportation to the job site.

The CONTRACTOR shall inventory all material supplied by the OWNER prior to

commencement of work. The CONTRACTOR shall notify the OWNER REPRESENTATIVE of any material shortages before commencement of work. The OWNER shall not be responsible for delays caused by material shortages which are not brought to the attention of the OWNER REPRESENTATIVE prior to the start of work or as they occur.

Once the CONTRACTOR has accepted receipt of materials, then the material shall be

considered free from shipping or handling damage and the CONTRACTOR shall be considered liable for damage (excluding manufacturing defects), theft, or loss reported at a later date. Failure of the CONTRACTOR to inspect or to report defective or damaged materials shall not relieve the CONTRACTOR of the responsibility for all damage to materials furnished by the OWNER after the CONTRACTOR has received them.

Immediately upon receipt of any materials furnished by the OWNER, the CONTRACTOR

shall forward a copy of all bills of lading, packing slips, Certified Material Test Record (Mill Specs or CMTR’s), and any other documents received in the shipment to the OWNER INSPECTOR.

At the end of the job, all OWNER supplied materials that are in surplus are to be returned to the OWNER. These are to be returned to the location where they were originally transferred to the CONTRACTOR’s custody, or to a location mutually agreed upon by the OWNER REPRESENTATIVE and the CONTRACTOR’s Manager.

The cost of this final movement of material will be included in the CONTRACTOR’s

proposed cost for cleanup. This material is to receive the same consideration as material moved to the right-of-way. If unreasonable damage or unreasonable shortages are found, they will be noted by the COMPANY INSPECTOR and will be charged to the CONTRACTOR’s account.

The CONTRACTOR shall not install any damaged or defective materials. 2.14.4 Receipt, Inspection, Acceptance and Repair of the CONTRACTOR-Supplied Materials All materials supplied by the CONTRACTOR shall be new, in accordance with the

drawings, and in accordance with industry codes and good construction practice. All materials to be supplied by the CONTRACTOR shall be approved by the OWNER. All materials procured by the CONTRACTOR shall be delivered to the job site and stored in an approved area.

All materials for permanent incorporation into the work shall be new, unused, and suitable

for the intended application. All CONTRACTOR supplied materials shall be shipped with the appropriate certification

documentation. The OWNER REPRESENTATIVE will not receive material delivered for the

CONTRACTOR’s account, nor will he provide storage or otherwise have responsibility for materials provided by the CONTRACTOR.

Exhibit A-3


2.14.5 Supply, Storage, and Handling of Pipe and Materials The CONTRACTOR shall be responsible for the handling of all materials. Handling of

materials, including but not necessarily limited to receiving, checking, lifting, loading, transporting, unloading, stacking, repairing, storing, and controlling of materials (including documentation), shall be carried out by the CONTRACTOR in such a manner as to avoid any damage or loss of materials. The CONTRACTOR shall provide necessary means to protect all equipment from damage during construction. Weatherproof covering shall be supplied by the CONTRACTOR to protect any or all equipment requiring such protection.

If the pipe coating company loads the pipe, any damage due to loading will be to their

account, as long as the CONTRACTOR provides the type of pipe separation skids and hold down straps as specified, provided the CONTRACTOR notes the damage on the bill-of- lading at the coating mill.

The CONTRACTOR shall take special safety precautions and protective measures in the

handling of chemicals in regard to health, fire, and explosion hazards in accordance with applicable local, state, and federal requirements. The CONTRACTOR shall also meet all DOT requirements for handling and transporting chemicals.

The CONTRACTOR shall, at the OWNER’s option, replace or repair any damaged

materials from mishandling or improper storage to the satisfaction of the OWNER. Materials other than pipe, including but not limited to, valves, fittings, scraper traps, etc.,

shall be lifted by the CONTRACTOR with suitable equipment. Suitable lifting hooks shall be used for delicate parts such as hand wheels, nozzles, etc. Valves, flanges, and fittings shall be handled in such manner and by such equipment that will prevent damage to shafts, facing, bevels, and machined surfaces.

During transport, materials shall be secured by suitable non-metallic non-abrasive slings. Blinded openings of materials shall be kept closed until installation. The blinds shall be

replaced by the CONTRACTOR in case of damage during transportation or storage by the CONTRACTOR.

The CONTRACTOR shall conform strictly to the Manufacturer’s instructions regarding

storage temperature and other conditions for all materials, and shall provide, when necessary, temperature controlled storage facilities.

2.14.6 Storage and Handling of Pipe The CONTRACTOR shall mark, set aside, and haul separately to the OWNER designated

location, defective or damaged pipe. All line pipe shall be inspected by the CONTRACTOR for damage to pipe walls and ends during unloading operations. Where necessary, pipe shall be stored at temporary storage sites provided by the CONTRACTOR.

No pipe, or other materials, shall be installed unless thoroughly inspected immediately

before installation. Pipe shall not be allowed to drop or strike objects that may damage the pipe and/or coating.

Pipe shall be lifted, moved, and lowered from one position to another by suitable equipment. Lifting hooks shall be equipped with a non-metallic or aluminum bevel protector, curved to fit the curvature of the inside of the pipe. In the case of pipe having caps, equipment with curved plate or cup to fit the outside of the pipe shall be used. No punching of caps will be permitted.

Exhibit A-3


Coated pipe shall be handled with wide canvas or nylon slings or other OWNER approved lifting device. Bare cables, chains, choker hooks, tongs, metal bars, and other equipment that could damage either pipe or coating shall not be permitted to contact the coated pipe surfaces and beveled ends.

The CONTRACTOR shall ensure that all belts and slings used to move pipe are of adequate size and rating and that they will not cause damage to the pipe’s coating. They shall not have protruding rivets, and shall be of a design that permits rapid and easy removal, such as having removable pin and clevis on one end. Damaged or worn belts or slings shall be discarded.

Temporary attachments for handling or lifting shall not be welded to any pipe. Trucks used to transport coated or bare pipe shall be free of any materials that might damage

or contribute to movement of the pipe during transport. Pipe shall be protected against truck beds and side metallic protrusions by means of non-

metallic non-abrasive materials. Pipe shall be loaded, stacked on trucks and cribbed to avoid flexing and shifting of the pipe

during transport. Truck bolsters for handling the pipe shall be at least 12" wide and well padded to distribute the pressure on the pipe coating if applicable.

After loading, suitable non-metallic non-abrasive slings shall be used to tie the load securely

to the truck. During transport the tension of these slings shall be regularly checked. Pipe ends shall be protected from contact with other metallic materials.

Lifting equipment shall not be used to transport pipe. Hauling of materials shall be done

under valid permits from governing regulatory agencies. The CONTRACTOR shall secure written permission for hauling over public and private roads, fields, pastures, etc., off the OWNER’s right-of-way.

Ground surfaces where pipe is stacked shall have sufficient bearing capacity to support the

planned stack and reasonably flat. Stacked pipes shall be raised above ground surfaces to a height above the level where surface or runoff water may contaminate or flow into the pipe. Stacked pipes shall be prevented from movement by timber. These supports shall not be less than 4" wide. Supports must be spaced and structured under the pipe to prevent denting or bending to pipe. When stacked, the outer pipes of the bottom layer shall be wedged or clipped. Pipes of different diameter, manufacturer, wall thickness, or grade shall be stacked separately, each stack to be properly marked.

2.15 Stringing Pipe shall be strung along the right-of-way and left with proper stoppers or wedges to prevent pipe

from rolling over or away from the ditch. Pipe shall be placed on skids with proper protection, subject to the OWNER approval, to prevent damage to pipe or coating. Dragging, sliding, or dropping of the pipe is not permitted. Pipe shall not be placed directly on the ground at any time.

In stringing of pipe on the rights-of-way, hoist equipment shall be used to unload coated pipe from the

stringing trucks. All pipe handling equipment shall be designed so as to not cause damage to the pipe and coating.

The CONTRACTOR shall adequately anchor pipe on steep slopes and where right-of-way conditions

dictate, to prevent pipe from rolling or sliding on skids. The distance between the trench edge and the

Exhibit A-3


pipe string shall be planned to provide adequate space to work on the pipe along the trench, and to minimize the stresses in the pipe string during lowering-in.

The CONTRACTOR shall string the pipe in such a way that it will not interfere with public roads,

footpaths, tracks, etc. Suitable gaps shall be left at intervals, as necessary, to permit the passage of livestock and/or equipment across the right-of-way and as directed by the OWNER REPRESENTATIVE, or as specified in Right-of-Way Agreements. The CONTRACTOR shall not be reimbursed for reasonable gaps in the stringing process.

The CONTRACTOR shall lay out and measure the pipes to minimize the cutting of pipe producing

residual sections of pipe less than 30 inches or two pipe diameters, whichever is greater, in length. All pup joints shall be carried forward each day by the CONTRACTOR and welded into the line

during the next day’s laying operation. All pup joints equal to 30 inches or two pipe diameters, whichever is greater, shall be used in the pipeline. The CONTRACTOR shall install pup joints in the line between full lengths of pipe and avoid placing pup joints adjacent to each other. Pipe sections less than specified in this paragraph are permitted only when inserted between fittings on a fabricated assembly.

Pipe markings, including bar-coding (if used), shall be maintained on both ends of ALL full joints of

pipe until the pipe is installed in the ditch. Markings shall show the AFE number, purchase order number, joint number and length, heat number, grade, diameter, and wall thickness. For “pup-joints” the markings to be used in the field are the letter “P” followed by original joint number. For any pipe that is brought into permanent inventory, including less than full joints, all pipe markings shall conform to those for full joints. The CONTRACTOR shall be responsible for proper stringing and locating of the pipe by size, wall thickness, or as outlined in this Scope of Work. Any moving of pipe made necessary by non-compliance with the Scope of Work shall be at the CONTRACTOR’s expense.

2.16 Alignment Changes (Bends)

All regulated pipelines shall be designed and constructed in order to allow the passage of an internal inspection tool. Refer to Standard MPLDGN006 Induction Bend Design, Table 1 – Minimum Inner Diameter and Bend Radii For In-Line Inspection for minimum ID for a specific pipe diameter. The Scope of Work will describe any fabricated bends to be furnished by the OWNER. The CONTRACTOR shall cut, bevel, and weld the OWNER-supplied bends to match the proposed alignment of the piping, unless the OWNER furnishes specific bends for particular alignment changes.

In general, all horizontal and vertical changes in the alignment of the piping 15° and less shall be accomplished through the natural flexure of the pipe or by field cold bends.

All field bending shall be performed by cold bending methods, but caution shall be exercised to avoid buckling of pipe or weakening welds. All bends shall be made utilizing a bending machine approved by the OWNER. The OWNER REPRESENTATIVE or OWNER INSPECTOR may reject any bend containing buckles, wrinkles, cracks, flat spans, or other evidence of mechanical damage. The CONTRACTOR shall obtain the approval of the OWNER REPRESENTATIVE before any cold bend is made. All completed cold bends must be approved by the OWNER REPRESENTATIVE for minimum ID to pass the specified inspection tool. At the OWNER REPRESENTATIVE’s request, a mandrel shall be used to verify roundness. The CONTRACTOR shall not be reimbursed for rejected field bends.

The maximum angle of bending shall be one and one-half (1-1/2) degrees at any point.

The distance between points of bending shall not be closer than one pipe diameter.

Exhibit A-3


The centerline of the bend shall be no closer than six feet to the end of the joint.

If double-jointed pipe is used, a bend shall not be closer than one pipe diameter to the girth weld. If a bend is made one pipe diameter from the girth weld, the girth weld will be re-radiographed.

Pipe shall be inspected for coating damage after bending and damaged coating shall be repaired at the CONTRACTOR’s expense.

The midpoint of over-bends shall clear the high point of the trench bottom (8” to 12” maximum clearance), and sag bends shall be fitted snug to the bottom of the ditch. All bends that do not fit the bottom or side of the ditch shall be removed or adequately supported to the approval of the OWNER.

Test specimens will be bent to determine bend limitations, with the CONTRACTOR providing the labor to make the test bends, and the OWNER providing the pipe.

Any pipe buckled or gouged shall be cut out and replaced at the expense of the CONTRACTOR. Miter or wrinkled bends will not be permitted for any pipeline. Deflections caused by misalignment up to 3° are not considered miter bends.

In general, the curvature of all bends shall be distributed throughout as great a length of pipe as possible. The intent of these specifications is to minimize all possible bending of pipe by controlling the ditching operation so as to provide minimum curvature in the ditch.

A minimum radius of any field bend shall be as follows, except where otherwise noted:

NOMINAL PIPE SIZE

MINIMUM RADIUS OF

BEND IN PIPE O.D. (DIAMETERS) 12 inches and smaller

18D

14

21D 16

24D

18

27D 20 inches and larger

30D

The wall thickness and ovality along any portion of the bend created in the field bending procedure

shall meet all requirements of ASME B31.4 and API 5L for wall thickness variations and out of roundness. The OWNER INSPECTOR shall measure the bend’s wall thickness and ovality to ensure compliance. The maximum ovality allowed shall be +2.5% when measured by the following equation:

(Maximum ID - Minimum ID) x 100

Nominal ID For multiple bends within the same pipe joint, a minimum tangent length of 4' is required at both ends

of the cold bend, unless otherwise specified. No over-bends, sag or side bends shall be permitted on either side of any road crossing for a distance

of 200' from the road right-of-way line, unless approved by the OWNER. All pipe with seams shall be bent with the seam positioned along the neutral axis of the bend. The

longitudinal seam of the pipe shall be positioned in the bending machine so that the seam does not lie within the plane of bending and not pressed upon by the bending shoe. When making multiple axes bends in double-jointed pipe, it may be impossible to place both longitudinal seams in the neutral

Exhibit A-3


axes. When this occurs, bending stresses on both longitudinal seams shall be balanced and minimized by aligning both seams as close as practicable to their respective neutral axes. When laying a horizontal bend in the ditch, the seam will be positioned in the top half of the pipe.

All bends created through the process known as “cold” bending shall be hydrostatically tested in

accordance with Standard MPLCON021 Hydrostatic Test Execution. 2.17 Welding Welding shall be in accordance with the OWNER’s Standards MPLCON016 Production Welding,

MPLCON031 Production Welding Procedures, MPLCON032 Production Welder Qualification, MPLMNT030 Maintenance Welding, MPLMNT034 Maintenance Welding Procedures, & MPLMNT121 In-Service Welder Qualification.

The CONTRACTOR shall furnish the test apparatus for testing the welds, unless specified otherwise

in the Scope of Work. The OWNER will furnish the pipe for testing the welds, unless specified otherwise in the Scope of Work. The CONTRACTOR shall furnish labor, welding equipment, and expendable supplies for making the test welds and preparing the weld specimens for testing. The OWNER will furnish forms for recording test data, and these forms shall become permanent records of the project. All welding procedure(s) are subject to approval by the OWNER. In the case of pre-qualified welders, the CONTRACTOR shall provide the OWNER INSPECTOR with copies of all certification documents necessary to show that the welders being utilized have been approved for the welding procedures being used on the project; the CONTRACTOR/OWNER shall provide documentation that the welders proposed have been using the welding process for which they are qualified since the date they were qualified, without a lapse in use of the welding process of more than six consecutive months.

The CONTRACTOR shall furnish a sufficient number of skids or jack stands to support the pipe at

proper height for welding. The length of line in which only stringer beads and hot pass have been completed shall be limited to 1,000' in any one section at the end of each day’s work. Each joint of pipe (except that furnished with steel caps over both ends of each joint) shall be swabbed with a leather or canvas belt disc of the proper diameter satisfactory to the OWNER INSPECTOR, to remove dirt, mill scale, and other foreign substances before placing in alignment for welding. Unless otherwise stated, all line pipe will be furnished with beveled ends. All paint, rust, scale, dirt, oil, moisture, or other foreign material that may adversely affect the quality of the welds shall be removed from the bevel prior to welding.

Any suitable means that is approved by the OWNER REPRESENTATIVE may be used for cleaning

of bevels. Individuals utilizing grinders to clean bevels shall wear full-face shields. The CONTRACTOR shall cut and re-bevel all pipe and pipe ends that are defective or damaged beyond repair, and shall cut and bevel pipe at locations necessary to maintain correct alignment, spacing and offsets of the pipe. Field cutting and beveling to remove defective material will be paid for by the OWNER at rates included in the contract. Cutting and beveling to maintain alignment, spacing, or offsets, or to remove pipe damaged by the CONTRACTOR during any construction phase shall be done at the CONTRACTOR’s expense.

Torch cuts and bevels shall be made with machines that maintain a uniform angle and make cuts

perpendicular to the longitudinal axis of the pipe. The pipe ends shall have all burrs removed from both inside and outside edges. Oxides resulting from torch cutting shall be removed.

The OWNER may elect to have the CONTRACTOR cut out any production welds for testing. The CONTRACTOR shall bear all expense of cutting and replacing the initial test weld for each welder to check his workmanship. If additional tested welds meet the standards of acceptance of API Standard 1104, the OWNER will pay the CONTRACTOR for cutting out the welds, preparing specimens for testing, welding replacement into the pipeline and other work connected with the test at the price included in the contract. If the welds fail to meet the requirements of API Standard 1104,

Exhibit A-3


the CONTRACTOR shall bear all such costs. A work order or other report shall be prepared for each removed production weld, and shall be signed

by the OWNER REPRESENTATIVE and the CONTRACTOR’s MANAGER. The report shall describe the defect known or believed to exist in the weld, weld removal date, weld location by station number, test procedure, test results, and assignment of cost. The pipe inserted shall be 30" or two (2) pipe diameters long, whichever is greater, and shall match as to grade and wall thickness. Only one pup joint shall be installed between full lengths of pipe.

A suitable line-up clamp shall be used to ensure accurate alignment and spacing. Internal clamps shall be used, when feasible, and commercially available. Internal clamp tension shall not be released until the root bead is complete. External clamps may be used when it is impractical to use internal clamps. External clamp tension shall not be released until the root bead is at least 50% complete and uniformly spaced around the pipe circumference. If adverse weather conditions exist, or restraint of pipe from movement is difficult, the root bead shall be fully completed before clamp tension is released.

Qualified welders, using qualified welding procedures, shall make production welds. Welding speeds

shall not be significantly higher than welding speeds during procedure or welder qualification tests. The CONTRACTOR shall not use a bonus system or any other plan that would tend to encourage welding speeds beyond the reasonable capabilities of the welders.

All cracks and arc burns shall be cut-out. No grinding on the pipe is allowed. Any grinds outside the

bevel made without the OWNER INSPECTOR’s approval shall be assumed to be arc-burns and shall be cut out at the CONTRACTOR’s expense. The CONTRACTOR shall be responsible for notifying the OWNER INSPECTOR of any grind marks found on the pipe before welding begins on the subject joint. Any grinds which are not brought to the OWNER INSPECTOR’s attention prior to welding shall be deemed to have been caused by CONTRACTOR and shall be cut out at the CONTRACTOR’s expense.

The CONTRACTOR shall not be allowed to strip welds for external undercut, pinholes or cold lap on

the outside edge of cap. Caps shall be ground off and recapped in making the repair for such a defect. Repair of multiple defects in a weld is allowed; however, the OWNER INSPECTOR will allow only

one repair of the weld. Only one attempt to repair any specific defect will be allowed by the OWNER INSPECTOR. All repairs of welds will be done at the CONTRACTOR’s expense.

Welding shall not be performed when the OWNER INSPECTOR believes that weld quality may be

impaired by the prevailing weather conditions, such as rain, blowing sand or high winds. Short pipe lengths or pup joints, 30" or longer, that are cut off when tie-in welds are made, or that may

be produced as a result of other operations, shall be used by welding them into the line at locations where the pipe matches as to grade and wall thickness. Pup joints shall be installed between full lengths of pipe. Pup joints shall be carried forward each day by the CONTRACTOR and welded into the line during laying operations the next day.

2.18 Alignment of Seams When laying any pipe having a longitudinal seam, the pipe shall be turned so that the seam will be on

the upper surface of the line and within 20° from top center. Successive joints shall be rotated to right or left to avoid aligning the seams in adjoining pipe sections.

2.19 Closing Ends of Line The open end of the line shall be securely closed, using internal type closures or other acceptable

devices at the end of each day’s work to prevent the entrance of water, animals, trash, or any other obstructions, and shall not be opened until work is resumed. A mechanical device, other than

Exhibit A-3


welding, shall securely fasten end plugs or caps. Where the line is left apart at intervals for any reason, both ends shall likewise be securely closed. The manner of closure must be satisfactory to the OWNER.

2.20 Radiographic Inspection of Welds Radiographic inspection shall be performed in accordance with Standard MPLCON007 Radiographic

Inspection & Documentation. 2.21 Cleaning and Coating Field Joints (Yard Coated Pipe)

Cleaning and coating application shall be in accordance with Standard MPLCON002 Pipeline and Below-Grade Coatings.

2.22 Laying, Coating Inspection, and Lowering No line shall be lowered into the ditch without the OWNER’s prior approval.

The trench bottom, which is to receive the pipe ,shall be free of all sharp objects, stones, etc., such as might damage the coating during lowering-in. Where determined by the OWNER REPRESENTATIVE, the bottom 6" of the trench shall be padded with a layer of selected backfill prior to lowering-in of the pipe or a sufficient number of sand bags in the ditch bottom to hold pipe clear of all projections. The OWNER REPRESENTATIVE shall approve all backfilling materials and methods.

The pipe shall be laid in the trench as close to center as reasonably possible to allow for acceptable padding on each side.

Prior to lowering or installing, the CONTRACTOR shall furnish and operate a pulsating sparking-

type holiday detector to inspect the pipe. The inspection and repair of all holidays shall be in accordance with Standard MPLCON002 Pipeline and Below-Grade Coatings.

All pipe coating shall be inspected prior to lowering the pipe into the ditch (or pulling carrier pipe into

casing pipe) and any damaged coating that is discovered shall be repaired. The area shall be thoroughly re-cleaned, re-primed, re-coated, and re-inspected in accordance with Standard MPLCON002 Pipeline and Below-Grade Coatings. Caution shall be exercised in moving the pipe into position for lowering to avoid coating damage.

When lowering the line into the ditch, the CONTRACTOR shall support the pipe at frequent and

regular intervals so as to provide for necessary slack, utilizing skids to prevent pipe coating damage. Before lowering into the ditch, all skid marks and other damaged places shall be repaired to the

satisfaction of the OWNER. If any excess slack exists, the CONTRACTOR shall remove it by cutting out the excess slack and then re-welding the resulting two ends of the line together. This shall be done at the CONTRACTOR’s expense. Pipe shall be lowered in as soon as possible after necessary inspection, and should then be backfilled expeditiously.

A non-abrasive sling or cradle approved by the OWNER REPRESENTATIVE shall be used in

lowering all coated pipe sections, and the necessary amount of slack must be obtained without injury to the protective coating. In removing belt slings after pipe is lowered, the CONTRACTOR shall dig soil from around the slings to clear them, if necessary, to protect the pipe coating. The OWNER INSPECTOR shall determine whether the coating is damaged and will have the option to require the coating to be re-inspected with a Holiday Detector. Any coating injured in handling or lowering the pipe shall be repaired by the CONTRACTOR at the CONTRACTOR’s expense.

Exhibit A-3


Protective shields of plywood (or equivalent material) shall be placed along side walls of trench containing rock or other hard objects. These shields are to be taken out after the pipe has been covered with clean backfill, and is not subject to further movement.

All sag bends and side bends shall fit the ditch neatly with equal and adequate spacing, and overbends

shall be limited to 8" to 12" above the ditch bottom. 2.23 Padding and Backfill The trench shall not be backfilled prior to the OWNER REPRESENTATIVE’s approval. Approval to

proceed will be contingent on proper ditch depth, configuration for support of pipe, and if required, completion of as-built survey.

The CONTRACTOR shall backfill all excavations to the satisfaction of the OWNER. When a ditch

for a pipeline is backfilled, the backfill material and method must be approved by the OWNER REPRESENTATIVE and it must be backfilled in a manner that provides firm support under the pipe and prevents damage to the pipe and pipe coating from equipment or from the backfill material.

ALL SKIDS (AND DEBRIS, ESPECIALLY METALLIC) MUST BE REMOVED FROM THE DITCH PRIOR TO BACKFILL.

Unless stated otherwise, a minimum of 6" of acceptable backfill shall be placed in the bottom of the

trench and over top of pipe. It shall be made only with fine, loose earth or sand which shall not contain sharp gravel, rock, hard clods of earth, hard objects, vegetation, organic materials, or any other detrimental matter or foreign objects that could damage the pipe or coating. The remaining backfill shall be placed in a way that will not disturb the underlying padding material and will not injure the pipe.

The CONTRACTOR shall install direct burial pipeline warning tape to all pipeline sections installed by open trench. Warning tape shall be installed once the pipeline is lowered in place and backfill has been properly placed over top of pipe. The warning tape should be placed approximately equidistant between top-of-pipe and top-of-ditch.

Where topsoil is separated, subsoil will be placed in the ditch first to an even level and then followed by the topsoil. The topsoil shall be replaced per agreement with the landowner.

The equipment to be used for backfill shall be at the CONTRACTOR’s discretion and subject to the

OWNER’s approval, with all consideration being made to minimize working space requirements. Wherever practical in the judgment of the OWNER REPRESENTATIVE, the first backfill shall be the natural spoil bank and shall cover the pipe at least 12”. When the natural spoil bank is unsuitable for use as backfill around the pipe, special sifting and/or crushing techniques shall be applied to the spoil bank. If the special techniques are deemed unsuitable by the OWNER’s INSPECTOR, then acceptable backfill will need to be hauled in. Rock shield shall not be used as a substitute for padding, although if the backfill is particularly rocky, the CONTRACTOR may be required to place a rock shield mat over the previously padded pipeline before completing backfilling. The OWNER REPRESENTATIVE will approve any rock shield utilized by the CONTRACTOR prior to use. After this first backfill has been placed over the pipe, rock taken from the ditch may be replaced in the ditch provided that in cultivated areas no rocks of any greater concentration or size than existed prior to construction are placed into the top 18" of the backfill to interfere with plowing and cultivating. All surplus rock removed from the ditch shall be disposed of to the satisfaction of the OWNER, landowners, and tenants.

The CONTRACTOR shall employ any acceptable method approved by the OWNER

REPRESENTATIVE to compact the backfill without damaging the pipe or coating. Compacting of backfill shall not be done through rock land where coating might be damaged, nor through sections

Exhibit A-3


where drain tile is encountered and might be damaged. The CONTRACTOR, at the CONTRACTOR’s expense, shall repair damaged coating or flattened pipe.

All backfilling across drainage ditches, irrigation ditches, terraces, levees, railroads, public highways,

private drives, trails, roads, or streams shall be done in a manner satisfactory to any private or governmental authority having jurisdiction.

After the backfill is satisfactorily compacted, the remaining soil shall be spread and shaped over the

trench by means of equipment approved by the OWNER REPRESENTATIVE. All backfill shall be crowned to a height not less than 8", nor more than 12", above the adjacent

ground surface in accordance with Drawing STDM042. The CONTRACTOR shall compact all soil in areas designated by the OWNER REPRESENTATIVE

in order to minimize settlement of the pipeline installation. Except as designated for specific areas, disturbed ground shall be compacted to at least a level of

compaction equivalent to that of the surrounding terrain. Backfill placed directly over the pipeline shall be hand compacted if necessary until 18" of coverage is

achieved. After 18" of coverage is achieved, backfill may be wheel packed by the OWNER approved method.

If cinders or slag are encountered, 6" of sand shall be placed in the ditch bottom before lowering pipe,

being careful to exclude all foreign material. The CONTRACTOR shall fill the ditch with sand to a minimum of 6" above the pipe, with the remainder backfilled in the usual manner.

Throwing of welding rods, cans, old tin, broken skids, brush, trees, foreign substance, or refuse of any

kind into the ditch will not be permitted. All such materials and refuse must be removed from the right-of-way, or otherwise disposed of to the satisfaction of the OWNER, landowner, and/or his tenant.

The finished backfill must be sufficiently level to permit normal run off and irrigation through

irrigated fields. Harrowing, disking, or hand raking may be required to accomplish this. Where the use of borrowed dirt is necessary to crown the backfill to the required height, the manner and method of securing dirt shall be approved in writing by the OWNER, and those having jurisdiction of the property. All terraces, levees, and sides of drainage or irrigation canals, and all roads and highways that are open cut, shall be backfilled in layers not exceeding 8”, and each layer thoroughly compacted by suitable compacting equipment to provide a good bond between the undisturbed sides of the ditch and the new backfill material. Refer to Standard MPLCON017 Crossing Installation: Un-cased, Cased, Mechanically Reinforced for crossing and compaction specifications.

Where the backfilling is performed during freezing weather, or where frozen material is used, the

CONTRACTOR shall refill, redress and compact the backfill after the ground thaws. When backfilling on hillsides or sloping grounds, the CONTRACTOR shall provide furrows or

terraces across the pipeline ditch, as needed, to direct the flow of water into natural drainage courses and away from the pipeline ditch. In areas that the slope is less than 10:1 (ten horizontal to one vertical) and the area of construction is an uncultivated field, all right-of-way will be permanently seeded. In areas that the slope is greater that 10:1, the slope will be scarified by running tracked or wheeled construction equipment up and down or across the backfilled surface, respectively. Also, the construction surface shall be fertilized, permanently seeded and mulched, if construction is in an uncultivated field. Seeding activities should be performed in accordance with Section 2.26, Seeding, Sodding, and Planting of this document.

Exhibit A-3


Locations specified on the alignment sheets (or Construction Line List), or at points designated by the OWNER REPRESENTATIVE, will have sandbags or other means of stabilizing the ditch as shown on Drawing STDM037. Vehicle tracks will be graded out of the right-of-way. All sloping areas subject to erosion will have terraces. Terraces will be spaced according to the slope. Terraces will have a fall not to exceed one (1) foot in fifty (50) feet. Other areas along the pipeline right-of-way subject to erosion after being disturbed by construction activity are to be provided with sack breakers as shown on Drawing STDM038.

At roads, hillsides, creek banks, river banks, and other places where earth has been removed changing

the contour of the terrain during construction, the CONTRACTOR shall grade the area until the original profile has been restored.

Fence gaps will be closed as shown on Drawing STDM033.

Before final acceptance, and after trench settlement has been provided to the satisfaction of the

OWNER REPRESENTATIVE, pavement and drives designated by the OWNER REPRESENTATIVE shall be repaved with materials similar to the type removed and approved by the OWNER REPRESENTATIVE. When repaving, the existing pavement will be line cut, with the edge face of the old pavement left vertical. Ragged edges shall be trimmed to provide a substantially straight-line juncture between old and new surfaces.

The rigid (asphalt or concrete) pavement replacement shall be 12 inches wider on each side than the

ditch excavation to allow the new pavement to rest on undisturbed base. The pavement replacement shall be placed to conform to the existing pavement and drive grades. The type of materials used for replacement is given in Standard MPLCON015 Road Construction and Foundations.

2.24 Hydrostatic Testing See Standard MPLCON021 Hydrostatic Test Execution and Standard MPLDGN003 Hydrostatic Test

Design & Documentation. 2.25 Cleanup and Restoration The CONTRACTOR shall commence cleaning up of the right-of-way immediately behind the

backfill operation and will be required to complete this work within a reasonable time and distance behind the backfilling operation. The work area shall be restored as nearly as practical to its original condition.

No excavated material, in excess of the crown over the ditch, shall be left on the right-of-way. All

remaining excess excavated materials shall be hauled away and disposed of by the CONTRACTOR, at designated places approved by the OWNER REPRESENTATIVE.

Cleaning up the right-of-way shall include, but not necessarily be limited to, the following steps: 1. Clean up and disposal of all refuse, debris, waste, and rubbish such as brush, rock, skids, barrels,

drums, cans, etc., resulting from the construction operations. 2. Remove all equipment, tools, and facilities that were used in the performance of the work. 3. Remove to places designated by the OWNER REPRESENTATIVE all surplus and defective

pipe and other materials originally furnished by the OWNER. Useable short pipe lengths which are 30" or longer shall be tallied, labeled in accordance with this Specification, Section 2.15 and documented on the OWNER supplied pipe tally forms by the CONTRACTOR’s MANAGER and OWNER INSPECTOR, and data forwarded to the OWNER REPRESENTATIVE. Pipe shall be transported by the CONTRACTOR to locations designated by the OWNER REPRESENTATIVE.

Exhibit A-3


4. Restore all natural drainage courses to their original condition. 5. Replace and/or restore to original, or better condition, fences and other enclosures through which

temporary gaps have been provided.

6. Restore field terraces, aqueducts, irrigation ditches, and other agricultural improvements to previous condition.

7. Repair all structures, roads, curbs, and other improvements cut or torn down in the course of the

work to a condition that is as good or better than existed before construction, and with the same quality materials that were removed.

8. Temporary bridges, obstructions to the flow of water, and other temporary structures built by the

CONTRACTOR shall be removed, unless the OWNER and CONTRACTOR mutually agree that a specific structure or structures should be left in place.

9. All surplus rock removed from the ditch shall be disposed of to the satisfaction of the OWNER.

The CONTRACTOR shall fill and smooth over holes and ruts, and shall repair all ground damage done during the course of the work.

10. If lawn areas are disturbed, ditches shall be tamped, damaged areas re-seeded, and the entire area

cleaned up to the OWNER’s satisfaction. 11. All disturbed ground shall be restored to a stable and usable condition consistent with its

condition prior to the work performed hereunder, and shall meet with the approval of the OWNER, landowner, and tenants.

The CONTRACTOR shall install identification signs in accordance with Standard MPLMNT019

Signage Guidelines. The CONTRACTOR shall install cathodic protection test stations in accordance with Standard MPLCON018 Cathodic Protection Test Stations.

The CONTRACTOR shall install aerial markers with the milepost designated at predetermined

locations in accordance with Standard MPLMNT019 Signage Guidelines. A separate sheet is included in the Job Specification Sheets (see Appendix “A”) that lists the milepost

for each aerial marker. The OWNER will provide the marker and backing boards, the CONTRACTOR shall provide the support posts.

2.26 Seeding, Sodding, Planting The CONTRACTOR shall grade and seed or sod all right-of-way through woods, pastures, or

residential areas. Precautions shall be taken, as necessary, to prevent erosion. Erosion control blankets shall be used in

seeded areas with slopes of 1:2 or greater. In areas to be seeded, topsoil shall be scarified and loosened to a 2" minimum depth, fertilized with

15-15-15 fertilizer at a rate of 10 pounds per 1,000 square feet, and limed with pulverized limestone at a rate of 20 pounds per 1,000 square feet. Areas are to be seeded at a rate of 5 pounds per 1,000 square feet, with certified seed as specified by OWNER. Where work is performed at an existing

Exhibit A-3


facility, the CONTRACTOR shall use materials like or compatible with existing. Materials should be uniformly applied and stabilized until vegetation is established to 70% or more.

Sod shall be obtained from areas having growing conditions similar to areas to be covered. Sod shall

have a clean growth of acceptable grass, reasonably free of weeds, with not less than 1-1/2 inches of soil firmly adhering to roots, with height of grass not over 4" when sod is cut. Cutting shall be in rectangular strips of equal width and of size to permit being lifted and rolled without breaking. If soil is dry, sod shall be watered sufficiently to moisten the soil to the depth at which the sod is to be cut. Dumping from vehicles will not be permitted. Damaged sod will be rejected. Replanting shall be done within 48 hours after time of harvesting or sod shall be kept damp until re-planted.

The CONTRACTOR shall sod areas as noted on the drawing(s) or in Scope of Work and/or

specifications. The soil shall be watered immediately after the sod is planted. The sod shall be laid without voids, placed smoothly edge-to-edge with staggered joints. Tamp or roll sod. Screened topsoil shall be broomed over the entire area, and the sod shall be thoroughly watered. The completed surface shall be true to finished grade lines, even and firm at all points. Sod on slopes steeper than 1:2 shall be staked with wooden pins, about 1" square by 6" long, driven flush with top of the sod. Stakes shall be placed no farther apart than 18" on center. Keep sod watered until it is well established. All work shall be warranted for one year.

Furnish shrubs and trees as located and in quantities as indicated on the Scope of Work provided by

the OWNER. All plants shall be nursery grown in accordance with good horticulture practice, freshly dug, and balled or containerized per American Nurseryman Standards. They shall be sound, healthy and vigorous, well branched and densely foliated when in leaf. They shall be free of disease or insects and shall have healthy, well-developed root systems. Plants over 2' in height shall be staked and braced for the first year. Keep plants watered until well established.

Planting operations shall be under the direction of a qualified landscape contractor who shall conduct

all planting in accordance with American Nurseryman Standards. Stakes, wire, hose, and wrapping material as required for supporting, bracing and wrapping all shrubs

and trees shall be supplied by the landscape contractor. Indicated plant areas are to be fully mulched and covered with wood chips and/or bark - 3" minimum

depth over porous weed barrier fabric such as Agritex Mat, Typar, or equal. Plant Sizes: Shade trees Minimum caliper or diameter of 1 to 1-1/2" Ornamental trees Minimum caliper or diameter of 1-1/2" Evergreen trees 3' to 5' minimum height with maximum spacing to provide nointerference

at maturity for species noted. Shrubs 1-1/2' minimum spread Screening Shrubs 4' minimum height The CONTRACTOR shall be held responsible for the plantings until the expiration of the guarantee

period. This period shall be for one year from the date of final acceptance by the OWNER. The CONTRACTOR shall replace, as soon as weather permits, all dead plants and all plants not in a

vigorous, thriving condition noted at the end of the guarantee period. Upon completion of the clean-up, the OWNER shall obtain a signed release from each landowner

stating that the right-of-way has been restored to the landowner’s satisfaction. The CONTRACTOR shall provide notification to the OWNER that the right-of-way has been restored to the desired condition and the OWNER should contact the landowner to secure releases .

Exhibit A-3


2.27 Damages The CONTRACTOR shall refer to Article #8 of the CONTRACTOR’s Major Service Agreement. 2.28 Settlement of Damages The CONTRACTOR shall refer to Article #8 of the CONTRACTOR’s Major Service Agreement. 2.29 Records The CONTRACTOR shall keep record books or sheets locating and describing the particulars of all

the work performed. A copy of the record book shall be made for the OWNER REPRESENTATIVE at the end of construction and provided to the OWNER. The CONTRACTOR may utilize the Daily Construction Progress Form (PLDCP) for documenting this information.

The OWNER shall approve the record books and said books will contain at least, but not necessarily

be limited to, the following information:

CONTRACTOR RESPONSIBILITY

Material receipt records Daily progress reports of all pipeline functions including but not limited to: Ditching, lineal feet completed Welding, names of welders utilized, which weld passes are being made by who, total

number of welds made per welder, weld identification number Coating, number of welds coated and/or lineal feet of pipe coated Padding, lineal feet Lowering, lineal feet Backfilling, lineal feet Testing Drying Cleaning Clean-up and Restoration Weather characteristics (temperature, humidity, etc.) Top of pipe and ground elevations, including average grade and the depth of cover over the

pipe.

CONTRACTOR and OWNER INSPECTOR JOINT RESPONSIBILITY

"As-Built" drawings consisting, at a minimum, of the following information:

Pipeline spool length Depth of cover

Location and depth of known crossings with pipelines or conduits X-ray and all non-destructive testing data: Station number of each weld and the welder(s)

who performed the weld Location (Station plus for beginning of bend, Station plus for end of bend) and degree,

bend radius in inches, wall thickness, grade of pipe, tangent length of all bends (field, cold or induction (hot))

Location (Station number) of all tie-in welds. Welder(s) utilized to make all tie-in welds. (Usually provided with the X-ray report)

Location (Station number) of all pipeline appurtenances Location (Station number) of all changes in pipe wall thickness, diameters, and pipe grade

OWNER RESPONSIBILITY

Exhibit A-3


All survey data Location or GPS data (Station plus for beginning of bend, Station plus for end of bend) and

degree, bend radius in inches, wall thickness, grade of pipe, tangent length, of all field and induction bends

Location or GPS data (Station number) of all welds, x-ray numbers, joint lengths, joint number and heat number. Welder(s) utilized to make all welds

Location or GPS data (Station number) of all pipeline appurtenances Location or GPS data (Station number) of all changes in pipe wall thickness, diameters, and

pipe grade Location or GPS data (Station number) of all foreign utility, pipeline and tile crossings Location or GPS data (Station number) of all centerlines for road, highway and railroad

crossings Location or GPS data (Station number) of all centerlines for small tributaries and each bank for

larger tributaries and river crossings

The CONTRACTOR’s MANAGER and OWNER INSPECTOR shall keep an accurate tally of pipe received, hydrotested, installed, discarded, and not used to the nearest tenth of a foot of length. This record shall be completed on the OWNER provided pipe tally form and made available to the OWNER REPRESENTATIVE throughout construction, and at the conclusion of the project it shall be presented to the OWNER. The tally of pipe shall include type of manufacturer, heat number, grade, wall thickness, diameter, coating type, purchase order number, AFE number and length to the nearest tenth of a foot.

All records and all copies of "As-Built" drawings shall be to the satisfaction of the OWNER

REPRESENTATIVE, and shall be turned over to the OWNER at the completion of the work. The OWNER shall have the right of access at any time to all of the CONTRACTOR’s records to

ensure that they are being sufficiently and accurately kept. The MPL LAND & PIPE MANAGEMENT REPORT (LPMRMPL) shall be used to document all

relevant data, including, but not limited to: Initial Contact Pipeline Locating Information Landowner & Third Party Information Pipeline Crossing and Encroachment Information Pipe and Soil Data Land Damage Information

3.0 SPECIAL CONSTRUCTION 3.1 Exposing Existing Pipelines and Appurtenances Excavation of MPL operated pipelines shall be in accordance with Standard MPLMNT005

Operating Pressures When Excavating Near In-Service Pipelines and Standard MPLMNT024 General Conditions and Guidelines for Right-of-Way Activity.

The CONTRACTOR’s MANAGER and/or OWNER INSPECTOR shall be responsible for obtaining copies of the applicable inspection form from the OWNER prior to beginning excavation, and documenting the excavation on a Land & Pipe Management Report (LPMRMPL). The OWNER INSPECTOR shall forward the completed Land & Pipe Management Report (LPMRMPL) to the OWNER for further handling.

In the case that another party’s line or appurtenance is encountered during excavation, the OWNER

INSPECTOR shall be responsible for filling out the appropriate section of the Land & Pipe

Exhibit A-3


Management Report (LPMRMPL). The OWNER INSPECTOR shall forward the report to the OWNER for further handling.

When removing earth from over and around pipe, the CONTRACTOR shall establish exact location,

amount of cover, method of excavation, and management of operating pressure in accordance with Standard MPLMNT024 General Conditions and Guidelines for Right-of-Way Activity and MPLMNT005 Operating Pressures When Excavating Near In-Service Pipelines.

The CONTRACTOR shall never place equipment in a position that could damage the pipe. Special precautions should be taken when digging with power equipment in accordance with Standard

MPLMNT005 Operating Pressures When Excavating Near In-Service Pipelines. The CONTRACTOR shall be required to maintain a safe excavation as specified in Section 2.9,

Ditching, of this document. The CONTRACTOR shall inform the OWNER INSPECTOR of unusual findings or defects

discovered on excavated facilities as specified in Section 2.9, Ditching, of this document No minimization of operating pressures is required for re-coating activities if mechanized equipment

is not in use during the procedure. The CONTRACTOR shall excavate existing facilities by use of manual labor and appropriate hand

tools as directed in areas designated by the OWNER REPRESENTATIVE. 3.2 Hot Taps See Standard MPLMNT030 Maintenance Welding, Standard MPLMNT034 Maintenance Welding

Procedures, and MPLMNT042 Hot Tapping. 3.3 Field Connections & Tie-Ins For connections to existing pipeline(s) see Standard MPLMNT004 Pipe Replacement.

For all other connections and tie-ins, the following shall apply: The CONTRACTOR shall inspect the pipe on both sides of the tie-in to ensure that the pipe is clean of all direct and other foreign matter. Tie-ins shall take place in the trench, unless otherwise approved by the OWNER REPRESENTATIVE.

The CONTRACTOR shall ensure that the pipe is lined up properly for tie-in and that it is not under

stress. To keep the pipe aligned during tie-in, the CONTRACTOR shall regrade the trench or rebend the pipe, if necessary, to eliminate excessive forces and stress.

The CONTRACTOR shall properly coat all tie-ins in accordance with Standard CONST002 Pipeline

and Below-Grade Coatings, prior to backfilling. All tie-in welds shall be inspected 100% by radiograph. In the case that tie-ins are made or are to be made on previously "in-service" piping with the intention

of placing the line back into service, see Standard MPLMNT001 Pipeline Repairs. In addition the following apply:

All drainage will be collected in a grounded metal or plastic container provided by the

CONTRACTOR and transferred into a grounded vacuum truck, as applicable.

Exhibit A-3


During "cold-cutting" operations, removal of blinds, flanges, valves, components, or other appurtenances, or where directed by the OWNER, a set of "bonding cables" shall be attached prior to the work being performed. The "bonding cables" shall provide electrical continuity across the area being modified. The CONTRACTOR shall observe and comply with the OWNER’s Lockout/Tagout policies in accordance with Standard MPLHES306 Lockout/Tagout Authorized, Affected and Other Employee.

The CONTRACTOR may not perform ANY work at a previously "in-service" location until

the CONTRACTOR and OWNER mutually agree that the location is sufficiently de-energized to allow for the work to progress safely.

Suitable fire extinguisher(s) (preferably dry chemical) shall be provided and adequately

manned by the CONTRACTOR at the tie-in site. Excavation shall permit quick access and exit by personnel in accordance with MPLHES313 Trenching & Excavation Safety.

Multi-gas-meter monitors and other appropriate monitoring equipment, capable of detecting

the presence of a hazardous atmospheres, shall be provided by the CONTRACTOR in accordance with HES313 Trenching & Excavation Safety, HES316 Hazard Communication Plan, and HES320 Hot Work Permit Program.

Once the CONTRACTOR has completed the piping system modification, the OWNER shall

fill the pipeline(s) with product. As a part of filling the line(s), the CONTRACTOR shall remove trapped air from the line by bleeding it off through appropriately positioned (high points, stubbed lines, and “Baker” tanks) air bleeds, unless the OWNER stipulates that this will be an OWNER performed activity.

Any product spilled during the process of modifying piping shall be reported immediately to

the OWNER in accordance with Standard MAP001 Incident Investigation. 3.4 Appurtenances and Piping Assembly The CONTRACTOR shall erect and install all piping above and below ground as shown on the

drawings or described in the Scope of Work. All pipe sections, including fabrications, shall be properly aligned during installation to avoid undue

strain when final assembly of flanges or screw joints are made. All assemblies must be level and plumb at completion. The use of spot heating will not be allowed in the alignment of the piping. The use of chain hoist or other power devices shall be prohibited in the alignment of the piping. The CONTRACTOR shall exercise due diligence to prevent the entrance of any foreign material into piping and equipment. All openings shall be securely closed during handling of pipe and equipment and when unfinished installation is left at the completion of a working day.

The inside of all pipe fabrications shall be thoroughly cleaned out with a close fitting plug, or flushing,

before any connections are made and/or the pipe installation is placed in service. All external burrs created during assembly must be ground off flush with the pipe surface to eliminate corrosion problems after painting.

The CONTRACTOR shall be responsible for setting all meters and/or strainers, setting and bolting up

of all pumps, installing all valves and installing all drain lines, air lines, water lines, control tubing, relief lines, etc., as shown on the drawings. The CONTRACTOR shall also connect and install fire protection system when called for on plans, and coat all underground piping as outlined in these Specifications.

The CONTRACTOR shall install, fabricate, or construct all pipeline appurtenances where indicated

on the drawings or in the Scope of Work. No deviations shall be made except by approval from the

Exhibit A-3


OWNER REPRESENTATIVE. Pipeline appurtenances shall include, but are not limited to, the following:

Main line valves Pipeline flanges and fittings Pipeline markers, warning signs, and vents. Concrete foundations, bases, anchors, supports, slabs, etc. Structural steel pipe supports Scraper and sphere launchers and receivers Concrete Weights and Pipeline Anchors Instruments, both local and transmitting Fences, paving, driveway, and lighting The CONTRACTOR shall obtain approval from the OWNER REPRESENTATIVE as to final

location and details of any pipeline appurtenances prior to installation, fabrication, or construction. 3.4.1 Flanges

See Standard MPLDGN002 Station & Mainline Piping.

Flange faces shall be thoroughly cleaned of all foreign matter, including paint and coatings, and inspected for damage before installation.

Flanges shall be installed so that bolt-holes straddle the vertical centerline (“2 holed”).

Before welding, flanges shall be properly aligned square with the pipe so that the gasket contact faces bear uniformly on the gasket. Flange alignment shall be such that when the stud bolts are loosened they may be removed freely without changing the alignment.

All flange faces will be wire brush cleaned prior to assembly.

Only wrenches in good condition, of adequate size, and designed for use on stud bolts, shall

be used. In no event shall pipe wrenches be used on bolts, studs, or nuts. 3.4.2 Permanent Pipeline Markers See Standard MPLMNT019 Signage Guidelines. 3.4.3 Insulated Flanges

Where designated by the OWNER, insulating flange assemblies shall be installed in the pipeline.

Installation shall be made in such a manner that the electrical conductance between the

flanges is reduced to zero, for all practical purposes, when bond wires are not connected.

For bonding wire installation specifications, see Standard CONST018 Cathodic Protection Test Stations".

After installing the insulating flange assembly, it shall be tested electrically and must be

repaired, if not satisfactory. The OWNER will pay repairs due to defective material. Repairs made due to damage created by the CONTRACTOR, or to remove materials damaged by the CONTRACTOR, shall be done at the CONTRACTOR’s expense.

Exhibit A-3


3.4.4 Valves

Valve setting installations shall include concrete pads for the valve and connected piping where directed by the OWNER REPRESENTATIVE. The configuration and details of the assemblies will be shown on drawings provided by the OWNER and/or described in the Scope of Work.

Block valve assemblies may be shop fabricated and tested at the OWNER’s approval. The

CONTRACTOR will be responsible for transportation of the valve assemblies from the fabrication and test shop to the location of installation.

Grading, fence construction and stone placement at the valve installation shall be performed

by the CONTRACTOR in accordance with Standard CONST008 Station Fencing. The OWNER REPRESENTATIVE will direct orientation of fence.

In order to reduce the relative movement of newly-laid lines and resulting bending stresses,

special care shall be taken with backfilling in the vicinity of all valve-setting installations. The pipe shall rest on undisturbed soil wherever possible, or on a firm ditch bottom obtained by tamped or sacked backfill. Approval of the OWNER REPRESENTATIVE must be obtained before backfilling any such section of the ditch.

Aboveground portions of all valve installations will be painted. See Standard CONST022

Paint, Linings & Above Grade Coatings. 3.4.5 Concrete Weights

Concrete weights and/or concrete coated pipe shall be installed at locations directed by the OWNER REPRESENTATIVE. Several layers of pipeline felt or rock shield shall be placed between the pipe and each weight. Where weights are installed on long sections of pipe, care shall be taken in handling to prevent buckling of the pipe. Weights shall be installed in accordance with Drawings STDM039, STDM040 and STDM041.

The CONTRACTOR shall load, haul, unload, string, and install weights at locations

designated by the OWNER REPRESENTATIVE. 3.4.6 Pipeline Anchors (Screw Type)

The CONTRACTOR shall provide all labor, equipment and other services required to install pipeline screw type or mechanical anchors where designated by the OWNER in the Scope of Work.

Pipeline anchors shall be installed in accordance with the manufacturer’s specifications.

During installation, every precaution shall be taken to prevent damage to the pipe and coating. Rock shield or other materials acceptable to the OWNER REPRESENTATIVE, shall be placed under the tie down bracket, prior to installation.

3.4.7 Pipe Supports

See Standard CONST015 Road Construction and Foundation.

Pipe supports shall be installed on piping as indicated on the construction drawings or at the direction of the OWNER REPRESENTATIVE. Adjustments shall be made by the CONTRACTOR to assure that the supports carry the load of the pipe, that excessive sag is removed from the pipe run, and that stress is not induced in the piping. The OWNER shall supply pipe supports unless otherwise indicated.

Exhibit A-3


Pipe supports shall be electrically isolated/insulated from the pipe with fiberglass (Glass-Mesh). Neoprene may also be used in addition to the fiberglass for vibration reduction.

3.4.8 Pillow Blocks & Thrust Blocks

When pillow and/or thrust blocks are indicated, piping is to be isolated from contact with the concrete by 1/2" thick solid neoprene rubber sheeting.

3.4.9 Screwed Piping

Pipe shall be Schedule 80 steel with 3,000 pound fittings for ANSI 150, 300, and 600 service.

Screw threads shall conform to ANSI B-2.1. Pipe shall be carefully cleaned and all scale,

sand, dirt, etc., removed before installation. The ends of all threaded pipe shall be reamed out full size with a long taper reamer so as to be partially bell-mouthed and smooth. Threads on pipes shall be cut with sharp, clean dies, full thickness of the die, and so no more than two (2) threads are left exposed when the joint is made up. Manufacturer’s threads shall not be run through the dies.

Threads in all threaded piping shall be coated with a non-hardening, pipe dope such as

Felpro "Moly-Paste", Fastorque "TS-70", Bostick "Never-Seize" or OWNER approved equal.

All pipe joints that will be located below finished grade and will carry pressurized product

shall be welded. Either butt weld or socket welded fittings may be substituted for screw thread fittings to ensure a leak-proof connection, unless otherwise approved by the OWNER. Pipe joints above grade shall be made in such a way that the piping may be taken apart.

3.4.10 Gasket Standards

Gaskets approved for general use in Raised Face Weld Neck Flanges are the spiral wound-type with non-asbestos filler material or the non-asbestos Garlok type. Unless approved by the OWNER, the recommended gasket shall be the spiral wound type with non-asbestos filler material. Gaskets shall meet API Standard 601 Specifications. See Standard MPLDGN002 Station & Mainline Piping.

The following operating parameters shall be adhered to for "Flexitallic" gaskets:

ANSI 150# through ANSI 900# “CGI” Style - Internal Ring Winding Material: 304SS Inner Ring Material: 304SS Filler Material: Flexicarb (Grafoil) Oper. Temp.: -400 F to +1000 F

Note: For low stress piping applications, such as atmospheric tank nozzles, man ways, roof drains or some low pressure manifold installations where spiral wound gaskets are impractical or unnecessary, utilize 1/16" compressed non-asbestos fiber gasket.

All flanged connections made shall require new gaskets. Gaskets used for hydrostatic tests

on temporary fittings shall not be re-used.

Exhibit A-3


All flanged valve and skillet connections shall require gaskets on both sides of the valve,

flanges, or skillet. All mating surfaces shall be thoroughly cleaned of all old gasket material, debris, etc., to ensure even and continuous contact.

3.4.11 Bolting Standards

All flanged joints shall be fitted up so that the gasket contact faces bear uniformly on the gasket and are made up with uniform bolt stress. Alignment of parallelism tolerance should be limited to 3/32" on flanges up to 24" diameter and 1/16" on flanges above 24" diameter, except for flanges at pumping units where the maximum misalignment shall be ≤1/64 (0.015”). Tolerances will be measured face-to-face. See Standard MPLDGN002 Station & Mainline Piping.

In bolting gasketed, flanged joints, the gasket shall be properly compressed in accordance

with the design principles applicable to the type of gasket used. Upon being made up, the flange, gasket, and flange connection shall not leak product.

Stud and bolt tensioning can be achieved using a torque wrench or other tensioning devices

such as hydraulic wrenches. Raymond Bolt Gauge PDX934 or stress Micrometer may be used to measure the stresses in the studs, rather than torque values in critical applications identified by the OWNER. Uniform tensioning is as critical as stress or torque level.

The minimum stress on a bolt shall be 50% of the specified minimum yield strength of the

stud or bolt material. For ASTM A-193 B7 or ASTM A-320 L7 studs, the SMYS is 105,000 psi, which results in an allowable minimum stress level of 52,500 psi.

The maximum torque allowed on a particular bolt shall be 60% of the specified minimum

yield strength of the bolt material.

The CONTRACTOR may employ the use of "load washers" to ensure an adequate bolt stress.

All bolts or studs shall extend completely through their nuts and have full thread engagement

with a minimum of two (2) threads showing.

All studs shall be lubricated completely on all bearing surfaces. The CONTRACTOR shall supply sufficient Felpro "Moly-Paste", Fastorque "TS-70", Red Bostick "Never-Seize" or OWNER approved equal for lubricating thread-bearing surfaces.

All bolt up connections must use new bolts. Bolts/studs shall meet ASTM A-193, grade B7

specifications and nuts shall meet ASTM A-194, grade 2H specifications. 3.5 Materials for Drain, Air, and Water Piping Drain lines shall consist of welded or screwed steel fittings, butt-welded, socket welded, or

screwed steel pipe. 3.6 Rock Excavation Refer to Section 2.7 of this document. 3.7 Road and Railroad Crossings See Standard CONST017 Crossing Installation: Un-cased, Cased, Mechanically Reinforced.

Exhibit A-3


3.8 River and Other Waterway Crossings See Standard CONST017 Crossing Installation: Un-cased, Cased, Mechanically Reinforced. 3.9 Cathodic Protection See Standard CONST018 Cathodic Protection Test Stations. 3.10 Special Construction Records

In addition to the records requirements named previously in Section 2.29 of this document, at the OWNER’s option, the CONTRACTOR shall provide a fully dimensioned, three-dimensional isometric drawing of the installation showing the footage of pipe installed. All pipe shall be labeled with its type of manufacture, grade, wall thickness, heat number, joint number, and diameter. All newly installed fittings and pipe are to be drawn in RED, while all existing or re-used fittings are to be drawn in BLACK. All piping or appurtenances removed and junked are to be cross-hatched in RED. Centerline-to-centerline dimensions, as well as actual pipe footage (not including fittings) should be shown on the drawing.

A drawing of the installation shall also be made by the CONTRACTOR’s MANAGER and OWNER

INSPECTOR to show the weld locations and station numbers (if applicable), as well as the numbers of each weld as they are shown on the NDT report and the welder(s) responsible for each weld. The drawing shall also include each pipe joint number as listed on the Pipe Tally Report Form (PLPTALLY).

3.11 Painting See Standard CONST022 Paint, Linings & Above Grade Coatings. 4.0 DELAYS The CONTRACTOR shall not receive or expect any remuneration or hold the OWNER responsible in any way

for any work stoppage or holdup on the project caused by any of the below stated reasons. However, the number of calendar days the CONTRACTOR is held up shall be added to the number of calendar days the CONTRACTOR has to complete the project,subject to the OWNER REPRESENTATIVE’s approval.

4.1 Weather The OWNER shall not be held responsible for inclement weather. Rainout days are defined as days

on which the complete "spread" is shut down on or before noon. 4.2 Right-of-Way If any landowner or governmental agency refuses to allow the CONTRACTOR or OWNER to

occupy the right-of-way and/or proceed with the construction of this pipeline across their property, the CONTRACTOR shall, at the direction of the OWNER REPRESENTATIVE, proceed with the construction in another area, if possible, until the matter is settled. If it is impossible to proceed with construction in another area, the CONTRACTOR shall, at the direction of the OWNER REPRESENTATIVE, halt any further construction work until such time as the matter is settled or another right-of-way is obtained. Reimbursement for any move around will be paid in accordance with the contract terms and conditions.

4.3 Lack of Material If for any reason any material necessary for the construction of this pipeline is not available, the

CONTRACTOR shall work in another area as agreed with the OWNER REPRESENTATIVE.

Exhibit A-3


4.4 Completion Date The new completion date shall be calculated by adding the number of calendar days caused by this

delay to the original completion date. 4.5 Move Out and Move In The OWNER may at its option any time after the third shutdown day, give immediate written notice

to the CONTRACTOR to shut down all spread crews and move out. The CONTRACTOR shall move out and move back in after being notified by OWNER that construction may again commence. (Initial move in and final move out shall be at the CONTRACTOR’s expense.)

5.0 SAFETY The CONTRACTOR, at a minimum, shall comply with the OWNER’s Standard HES321 Contractor Safety

Program. Copies will be made available to the CONTRACTOR’s MANAGER for distribution to all foremen working on the project.

5.1 CONTRACTOR’s Safety Program The CONTRACTOR’s proposal shall include a copy and explanation of his safety program. The CONTRACTOR’s proposal shall include a description of how his safety program will be

implemented on this specific job. In particular, the CONTRACTOR shall indicate when safety meetings will be held.

The CONTRACTOR shall be knowledgeable of OSHA’s hazardous communications requirements and shall brief the OWNER REPRESENTATIVE on the provisions of his required hazard communication program.

5.2 Special Safety Considerations for Pipeline Work Special precautions must be exercised near electric transmission lines. Where the pipeline route is

parallel or adjacent to electrical transmission lines, no equipment exceeding twenty feet in height will be used without the approval of the OWNER REPRESENTATIVE. In these locations, the CONTRACTOR will exercise care to avoid any contact between booms and the overhead lines. Equipment operators will also be warned to avoid guy wires (to avoid shaking the poles and causing contact between phases as the lines bounce). The CONTRACTOR will flag guy wires to make them more visible to the operators.

Pipe sections on skids shall be grounded at specified intervals to reduce induction. Welding will be done only in areas cleared of dry vegetation. The OWNER REPRESENTATIVE

will require fire guards in areas of dry vegetation. The CONTRACTOR will provide fire extinguishers, shovels, fire blankets, and other fire fighting equipment and materials with every crew.

Hot welding rod stubs are to be dropped into metal containers.

Trenches will meet OSHA requirements. No one will enter a trench until all OSHA requirements have been met and the CONTRACTOR’s "Competent Person" has approved the trench as meeting all safety requirements (refer to Section 2.9 of this document for further discussion).

Hand digging only is allowed near pipelines that are being crossed.

Exhibit A-3


Pipe will be handled only when experienced personnel are directing activities. When pipe is unloaded from trucks, special care will be taken when retaining straps are released, or when a truck is moved after retaining straps have been released and tensioned again.