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Thermo Scientific NITON Analyzers Seminar on Positive Material Identification (PMI) TransCanada Calgary, Alberta, Canada July 9, 2014 Presenter: Don Mears President of Analytical Training Consultants Oil & Gas Industry


  1. Thermo Scientific NITON Analyzers Seminar on ‘Positive Material Identification’ (PMI) TransCanada Calgary, Alberta, Canada July 9, 2014

  2. Presenter: Don Mears • President of Analytical Training Consultants • Oil & Gas Industry Consultant • Author of API RP 578 2 nd Edition PMI Certification Course • Certified API Training Provider Certification TPCP# 0118 • 30+ Years in the Oil & Gas Industry • API Member and Sub-Committee Member on API Inspection Summit 2015 and Co-Chairman for the Re-write of API RP 578 PMI Recommended Practice API/TPCP -0118 2

  3. What and How Important is Mitigating Corporate Risk for Safety & Environmental Issues ? • Transcanada map.pdf • As we look ahead, our strategic focus remains clear. In pursuing our vision to become the leading energy infrastructure company in North America, we strive to execute on our current portfolio of large, attractive projects and initiatives and to continue to work to cultivate a high-quality portfolio of future growth opportunities. • In addition to our over $46 billion of assets, we have a superior growth portfolio that will see us invest approximately $22 billion in a number of energy infrastructure projects throughout North America. The majority of these projects are under construction and are expected to be completed over the next three years. 3

  4. Goals for Canadian Association of Petroleum Producers ( CAPP) & American Petroleum Institute ( API) are very Similar • Energy • Economy • Environment • Canadian Energy Development- CAPP-4-7-2014.pdf • Environment, Health & Safety • www.API.Org 4

  5. “Codes and Specifications for Mitigating Corporate Risk” New Construction Projects • You are very environmental & Do you just Trust Safety conscience ! your Pipe Suppliers- • But what are you currently doing to Mill Test Reports “Confirm that the ( MTR’S) ? Line Pipe” meets the correct “Material Chemistry” ? • Keystone-XL- PHMSA-57- Special- Conditions.pdf • http://www.phmsa.dot. gov/pipeline Look at Condition # 4-Program must Eliminate defects in “Chemistry as affecting pipe quality.” 5

  6. New Construction: Do Not Rely Solely on Supplier “Material Test Reports” (MTR’S) • Experience has shown that you cannot rely on material test reports (MTR’S) alone; there can be significant errors. • One customer site survey revealed as much as 20%-30% of material test reports (MTR’S) did not match actual chemistry. They also tend to loose the reports. They get separated from the existing material. “Trust but Verify” - This is what PMI Does !!! 6

  7. New Construction: PMI Cycle Overview- Renewed & Now Required Emphasis Residual Elements found in Carbon Steel (i.e. Cr, Cu, Ni , Mo, V, Ti) MTR’s Normally do not test PMI Program needed to confirm for these Elements and the MTR Chemistry should not be in the Carbon for QA/QC- Too Late Steel ! in the field !!!!! But They Are There!!! 7

  8. Recording & Reporting PMI Test Results: API RP- 578 • Material Certifications: (7.2) Material Certifications, mill test reports, or Certificates of Compliance should not be considered a substitute for PMI testing , but may be an important part of an overall quality assurance program. • Shop and Field PMI Test Documentation: ( 7.3) • Those individuals performing PMI testing should obtain and follow the PMI test procedure approved by the owner/user. • This procedure should cover the techniques used , equipment calibration, the qualification requirements of the PMI test personnel, the testing methodology, and documentations requirements. • When documentation, such as drawings, is used in lieu of physical marking, the documentation should allow the owner/user to identify which components were tested. • New and Existing Piping Systems Documentation: ( 7.4) • When PMI testing is conducted on new or existing piping systems, records of the results should be kept as long as the piping system exists in its original location. • If a piping system or a portion of a piping system that has not received material verification is relocated, the owner/user should consider the need for PMI testing prior to placing the relocated components into service. 8

  9. Recording & Reporting PMI Test Results-API RP-578 Traceability to Field Components; the information listed in “PMI Test Records” should be reported in such a manner that they are traceable to the point of installation. The best way to tie the “Report Documentation” to the field P&ID or ISO drawings, is to mark the drawings ( Electronically or Manually) and enter this (drawing number) in the XRF/OES Analyzer. It is strongly suggested that you keep both paper and electronic files on this documentation. PMI PMI Enter data into Analyzer Interface with “Data PMI Management Software” (i.e. PCMS, Ultra-Pipe, PMI Meridian, Solid AIM & RBI PMI Software & PCIMS) PMI 9

  10. “Codes and Specifications for Mitigating Corporate Risk” API RP 578 2 nd Edition for PMI Certification Course

  11. Training Course Advantage Explained on API RP-578 by Don Mears Analytical Training Consultants

  12. Introduction to API 578 PMI Certification Course In today's risk-based QC environment, the need for positive material identification (PMI) has grown dramatically in refinery and petrochemical plant operations, requiring 100% alloy material verification for designated critical components . Meets RAGAGAP requirements for OSHA,BSEE,NTSB,DOT,PHMSA • Purpose of the API Course • To certify and re-certify (every 3 years) API inspectors, NDT Technicians and designated key personnel in understa n ding and applying API RP 578 in the proper Use and Application of procedures for utilizing XRF and OES technologies for PMI. • TWO (one-day sessions) • Classroom instruction on API RP 578 2nd Edition guidelines • Hands-on PMI field testing procedures. • Understanding of API RP 578 Guidelines & Applications in the Field • Application of proper XRF and OES PMI testing procedures • Testing both Written on Academic's and Examination on Testing of Metals • American Petroleum Institute (API) Certification “Codes and Specifications for Mitigating Corporate Risk” 12

  13. API 578 PMI Certification Course 13

  14. QA QC for New Construction Projects, Need PMI “Codes and Specifications for Mitigating Corporate Risk” API RP 578 PMI (Downstream Document) Don Mears – Co-Chair for Re-Write. Setting up task force. Invited: Upstream and Midstream Sectors to participate: Mike Childers, SW Gas and Scott Boker, TransCanada 14

  15. PHMSA's Proposed Pipeline Penalties Hit All-Time High; Serious Pipeline Incident Count Hits All-Time Low • Agency Proposed Largest-Ever Collective Civil Penalties in 2013; Tougher Penalties Helping Contribute to Increased Pipeline Safety • (PHMSA) announced that in 2013, it proposed more than $9.7 million in civil penalties against pipeline operators who violate safety regulations. The figure is the highest yearly amount of proposed penalties in the agency's history. • Since 2009, PHMSA has proposed more than $33 million in civil penalties against pipeline operators, $10 million more than the amount proposed in the previous five years combined. It has also issued 544 enforcement orders over the past five years, constituting more than half of all orders issued by the agency since 2002. • PHMSA also reports 45 percent less serious pipeline incidents, those resulting in fatalities or major injuries, since 2009. The count has declined each year since 2009. • The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 doubled the maximum civil penalty amount PHMSA is able to impose against pipeline operators for violating pipeline safety regulations from $100,000 to $200,000 for each violation , and from $1,000,000 to $2,000,000 for a related series of violations . • Information taken from: PHMSA 02-14 Monday, April 7, 2014 Contact: Jeannie Shiffer Tel: 202-366-4831 15

  16. “Codes and Specifications for Mitigating Corporate Risk” Vintage Pipeline • Mike Childers to explain what he is doing “Key hole” technology with SW Gas. • Explain: “Plains Justice Report “- Defective Steel traced back to Steel Mills had improper “Material Chemistry”. Low levels of (Mg, V ,Nb, Mo),PHMSA-Low Chemistry-Plains Justice report on 2009 Bulliton.pdf • Explain: “ Alternative Yield Strength Test Method”-Oregon Public Utility Commission, (OPUC) on 12/11/2012 -Granting the “Avista Utilities of Spokane” , Washington-Phase 2 “ Establishment of Yield Strength Using Sub-size Samples with out Gas Line Shutdown”-Waiver Request -Portion of the requirements found in CFR title 49, Part 192.1 07(b) and, by reference, Part 192, Appendix B, Section II, Paragraph D. • To allow Utilities Company to determine the yield strength of these segments without taking the lines out of service or utilizing a bypass system by using an accepted and commonly used specimen removal technique. Further, the alternative test method will provide yield strength values that are likely to be conservative compared to full-size specimens. The alternative yield strength test method and the smaller specimens are therefore consistent with pipeline safety. • Oregon_2013.pdf 16

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