API RBI Vision Updated 2006 API RBI is a Management Tool that is: The premier RBI methodology accepted worldwide by jurisdictions Involved in every mechanical integrity decision Part of a plant’s work process, like SAP or PeopleSoft

API RBI Objectives Technology: Industry standard for risk assessment and state-of-the-art inspection planning Marketing/Software Usability: –Short-term: Software enhancements for user effectiveness and efficiency; focus on user community education and feedback –Long-term: Globally accepted approach that crosses industry lines, i.e., chemical/petrochemical, production gas plants, ammonia, pulp & paper –International: Support current and future user group companies by helping gain jurisdictional acceptance

Regulatory & International Acceptance Objective: Expand use of API RBI Internationally Focus on the technology (581) rather than the software EPERC/RIMAP (sunset August 2004) –MOU in place –API 581 draft provided for review and comment Japan MOU requested Organizing and providing International training Publishing technology in public domain is key to regulatory and international acceptance; follow model of API 579 acceptance

BP PDVSA ADGAS MarathonAshland Shell GS Lyondell Chemical Petro-Canada Saudi Aramco Chevron Conoco Dow Total Petrochemicals Syncrude Flint Hills Resources DSM Services Chinese Petroleum Phillips Sunoco * Membership as of 2002

Hess ADGAS (1) Flint Hills Res. IRISNDT Qatar Chemicals (1) Spectra Energy (1) Flint Hills Resources PDVSA Marathon Lyondell Chemicals Italian Welding Inst. JGC Plantech Petrobras Pasadena Refining (1) Irving Oil (1) Lloyds Register ISQ Ineos (1) Shell GS Placid Refining (1) Saudi Aramco Repsol-YPF (1) Petro-Canada Praxair (1) Invista Georgia Pacific Sunoco Valero Suncor (2) Total Petrochemicals * Membership as of March 2007 BP Berwanger Braskem S/A (3) Bayer Chemicals Enap Sipetrol (1) Chevron ConocoPhillips CHS Energy (1) CP Chemicals Ashland Chemicals DNV Dow

API 581/User Group Structure API RBI for 581 is multi-disciplinary; need specific expertise in Inspection Planning, POF and COF modeling Balloting has been difficult and leads to delays To circumvent ballot problems and get alignment with technical experts and technology, the following organization is proposed:

API 581/User Group Structure API 581 is a 3 Part document to address multi-disciplinary nature: –IP (Part 1): working group staffed by members from Subcommittee on Inspection –POF (Part 2): working group staffed by members from FFS Task Group and Subcommittee on Corrosion & Materials –COF (Part 3): working group staffed by members from Pressure Relieving systems and Others (safety?) API 581 Task Group coordinates overall 581 document, proposed balloting is as follows: –Part 1 – 581 Task Group and working group on IP –Part 2 – 581 Task Group and working group on POF –Part 3 – 581 Task Group and working group on COF Task Group on 581 meets with User Group to coordinate technology and funding, working groups typically meet at API Report to CRE recommended to establish priorities and facilitate cooperation between committees This structure gets alignment with technical expertise and subject matter, facilitates the ballot process and without introducing extra cost, i.e. minimizes travel