NACE International Calgary Section Analysis of Pipeline Failures versus Pipeline Failure Analysis? David Richardson, P.Eng. smart-Project Management Inc. www.corrosionmitigation.com Technical Luncheon November 21, 2014

Analysis of Pipeline Failures versus Pipeline Failure Analysis? Scope of study What failure analysis has taught us What analysis of failures can teach us Improved pipeline performance is immediately available

Upstream gathering systems Analysis of Pipeline Failures versus Pipeline Failure Analysis? 1. Scope of study Internal Corrosion Upstream gathering systems Status Operating Bare Steel OE / NG / SNG

Analysis of Pipeline Failures versus Pipeline Failure Analysis? 1. Scope of study Our inventory 220,000 km U/S/O/NG/SNG/OE 460,000 km AER licenses

Analysis of Pipeline Failures versus Pipeline Failure Analysis? 1. Scope of study Our performance – 12,000 IC failure events

GATHERING SYSTEMS

TRANSPORTATION / TRANSMISSION

(operational and financial) Analysis of Pipeline Failures versus Pipeline Failure Analysis? 2. What failure analysis has taught us typical top-10 bad actor Desired outcomes (operational and financial) are not being achieved

Analysis of Pipeline Failures versus Pipeline Failure Analysis? 2. What failure analysis has taught us Three root cause contributors common to all IC failure events 1. Incomplete characterization of corrosive environment 2. Mitigation performed is not aligned to the actual corrosive environment 3. Corrosion damage not found and repaired prior to failure event Good news derived from failure analysis – the agenda is firmly established for guiding the industry towards improving pipeline performance

1. Incomplete characterization of corrosive environment Analysis of Pipeline Failures versus Pipeline Failure Analysis? 1. Incomplete characterization of corrosive environment 3. What analysis of failures can teach us the “corrosion triangle”

1. Incomplete characterization of corrosive environment Analysis of Pipeline Failures versus Pipeline Failure Analysis? What analysis of failures can teach us 1. Incomplete characterization of corrosive environment irrefutable data patterns from 12,000 events provide guidance for future pipeline integrity management

1. Incomplete characterization of corrosive environment Analysis of Pipeline Failures versus Pipeline Failure Analysis? 1. Incomplete characterization of corrosive environment 3. What analysis of failures can teach us Part 1: delivery of production from upstream well(s) Part 2: pH profile vs time Part 3: location within Alberta

1. Incomplete characterization of corrosive environment Analysis of Pipeline Failures versus Pipeline Failure Analysis? What analysis of failures can teach us Part 1: delivery of production from upstream well(s) 1. Incomplete characterization of corrosive environment application of a set of complex queries assigns a 0.01-1.0 percentile score for all 350,000 UWI events in AB

1. Incomplete characterization of corrosive environment Analysis of Pipeline Failures versus Pipeline Failure Analysis? What analysis of failures can teach us Part 2A: pH profile vs time – “Grade 9?” 1. Incomplete characterization of corrosive environment “grade 9” characterize if water-film can sufficiently move water to prevent localized low pH traps factors is shear-stress sufficient to move water is mechanical pigging moving water is water separation causing stagnant traps

1. Incomplete characterization of corrosive environment Analysis of Pipeline Failures versus Pipeline Failure Analysis? 8 year corrosion rate (not a 22 year corrosion rate) UWI SCORE 0.97 1. Incomplete characterization of corrosive environment Part 2B: pH profile vs time – (expected corrosion rate) is there a source of low pH fluids from UWI when will the exposure occur / has the exposure occurred what is water transport at time of detrimental UWI stagnant “Grade 9” or solution-by-dilution establish the expected maximum corrosion rate not necessarily deWaard & Milliams (NACE)

1. Incomplete characterization of corrosive environment Part 1: examination of pipeline performance patterns AB – All Pipelines Operating / Bare Steel / NG / SNG / OE Count Segments: 220,000

1. Incomplete characterization of corrosive environment Part 1: examination of pipeline performance patterns AB – IC Failure Events (pre-1980) Operating / Bare Steel / NG / SNG / OE Total IC Count: 540

1. Incomplete characterization of corrosive environment Part 1: examination of pipeline performance patterns AB – IC Failure Events (pre-1990) Operating / Bare Steel / NG / SNG / OE Total IC Count: 3,629 (3,089 incremental)

1. Incomplete characterization of corrosive environment Part 1: examination of pipeline performance patterns AB – IC Failure Events (pre-2000) Operating / Bare Steel / NG / SNG / OE Total IC Count: 8,519 (4,920 incremental)

1. Incomplete characterization of corrosive environment Part 1: examination of pipeline performance patterns AB – IC Total Count Failure Events Operating / Bare Steel / NG / SNG / OE Count Failure Events: 12,100 (3,551 incremental)

1. Incomplete characterization of corrosive environment 400 > 75 % of all IC failures (9,100) located within 5 special zones 1,150 AB – IC Total Count Failure Events Operating / Bare Steel / NG / SNG / OE 2,200 2,200 Age-at-IC-Failure for Segments with IC Failure (years): NG 9.2 SNG 6.9 OE 8.6 3,200

1. Incomplete characterization of corrosive environment Part 1: examination of pipeline performance patterns AB – Non-IC Failure Events Operating / Bare Steel / NG / SNG / OE Count TWNSHP with Operating Pipelines: 4,316 Count TWNSHP with NIL Failure Events: 3,084 (72%)

1. Incomplete characterization of corrosive environment Analysis of Pipeline Failures versus Pipeline Failure Analysis? Improved pipeline performance is immediately available 1. Incomplete characterization of corrosive environment 3. What analysis of failures can teach us Application stories

Analysis of Pipeline Failures versus Pipeline Failure Analysis? Improved pipeline performance is immediately available Rapid Success

Analysis of Pipeline Failures versus Pipeline Failure Analysis? Improved pipeline performance is immediately available 1. Incomplete characterization of corrosive environment 2. Mitigation performed is not aligned to the actual corrosive environment 3. Corrosion damage not found and repaired prior to failure event Benefits to all Elements of Integrity Management

Analysis of Pipeline Failures versus Pipeline Failure Analysis? Improved pipeline performance is immediately available Publication of Mitigation Guidelines competitive “directives” are no longer accepted Field, Operations create line-by-line mitigation program by applying their intelligence of the operating system

Analysis of Pipeline Failures versus Pipeline Failure Analysis? Improved pipeline performance is immediately available ILI Correlation – 288 actual ILI log samples UWI = 0.01 UWI = 0.98 95% match defects > 50% wall loss 8 events under-estimated all critical misses at Zama field

Analysis of Pipeline Failures versus Pipeline Failure Analysis? Improved pipeline performance is immediately available present state & projected state 5x increase in annual failures anticipated within 10 years

Analysis of Pipeline Failures versus Pipeline Failure Analysis? Improved pipeline performance is immediately available present state & projected state

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