1. 1 Twelve Steps to Engineering Safe Oil and Gas Facilities Based on SPE 141974 By: Jim Johnstone and Jim Curfew – Contek Solutions LLC Presenter: Mike Leonard – VP of Special Projects – Contek Solutions LLC Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

2. 2 Twelve Steps to Engineering Safe Oil and Gas Facilities 1.Set a Design Standards Policy 2.Lay Out the Site for Safety 3.Personnel Safety 4.Design Piping Properly 5.Select the Proper Pressure Vessel 6.Picking the Right Tank 7.Specifying Rotating Equipment for Safety 8.Relief-System Design is Critical 9.Determining the Right Electrical-Area Classification 10.Design the Instrumentation and Control System for Safety 11.Conduct a Process Hazard Analysis 12.Design Verification and Commissioning Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

3. 3 Get Management On Board Are you following the “High Road”? Does the company have personnel with facility safety engineering experience? Is cost a barrier to safety? Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

4. 4 1. Set a Design Standards Policy What Standards to Follow? Communicate to ALL Example Statement: “All facilities will be designed in accordance with good industry design practices and codes, and to also meet all regulatory requirements.” Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

5. 5 2. Lay out the Site for Safety Vents, Flares, Fired Equipment, Engines, Vessels, Tanks, Offices and Control Equipment Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

6. 6 Spacing Guidelines Reference: PIP PNE 00003 “Process Units and Offsite Layout Guide Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

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8. 8 3. Personnel Safety Exit Routes Stairs Platforms Guarding Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

9. 9 4. Design Piping Properly B31.3 – Process Piping B31.4 – Liquid Pipelines B31.8 – Gas Pipelines Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

10. 10 5. Select the Proper Pressure Vessel ASME Section VIII Division 1 Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

11. 11 6. Picking the Right Tank Fiberglass or Steel? Atmospheric or Low Pressure? Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

12. 12 7. Specifying Rotating Equipment for Safety Pumps IC Engines Compressors Electric Motors Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

13. 13 8. Relief System Design is Critical Capacity Types Sizing System Design Vent or Flared Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

14. 14 9. Determining the Right Electrical Area Classification API RP 500 NFPA 497 Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

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16. 16 10. Design the Instrumentation and Control System for Safety Levels of Protection Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

17. 17 Safe Alarm and Control Systems ConditionCauseEffectPrimary ProtectionSecondary ProtectionLocation of Safety Devices OverpressureHigh inflow pressure; thermal expansion Sudden rupture or leakPSHPSVGas vapor section LeakCorrosion, erosion, mechanical failure, rupture, external damage Release of hydrocarbons to the atmosphere PSL to shut off inflow; Check Valve to prevent backflow; LSL on an atmospheric tank or vessel Sump/drain system; LSH on sump system PSL in vapor section; LSL at lowest point in atmospheric tank Liquid OverflowHigh liquid inflow; Upstream failure of a device; Blockage of liquid outflow Overpressure or excess liquids in downstream devices; Release of hydrocarbons to atmosphere LSHSump/drain system; LSH on sump system LSH at high point in vessel or tank Gas BlowbyFailure of liquid level system; opening of bypass Overpressure of downstream components LSLSafety devices on downstream component LSL at lowest point in vessel or tank UnderpressureWithdrawal in excess of inflow; thermal contraction when blocked in Collapse of the component; leak Atmospheric vessels: vent; Pressurized vessels: gas makeup system Atmospheric vessels: second vent or PSV; Pressurized vessels: PSL to shut off inflow and outflow PSL at highest practical point; PSVs and Vents in accordance with good Eng. Practices Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

18. 18 11. Conducting a Process Hazard Analysis Obtain Drawings Select type of PHA Incorporate results into final design Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

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20. 20 12. Design Verification and Commissioning Pre-Startup Safety Review (PSSR) Site Punch List Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

21. 21 Conclusions and Recommendations Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS

22. 22 Questions? Contek Solutions LLC ENGINEERING ENVIRONMENT SAFETY MANAGEMENT SYSTEMS