1. Section 9 : MAOP Upgrade APIA Seminar February 2007

2. Section 9 : Upgrade of MAOP Introduction Principles Process overview Next steps …but first a quick story...

3. Once upon a time...

4. A couple of young engineers... Hi I’m Ian … and I am Max Nice sunnies eh!

5. …were asked to build a pipeline...

6. …delivering as always a great job... Great route selection, Max Excellent protective measures, Ian

7. …allowing time for well earned rest...

8. Time goes by…and then years later...

9. ..at an internal sales conference...

10. … a new project … is proposed...

11. … and planned... Should be no problem…we’ll just increase the pressure in that old pipe…though we will need to get regulatory sign-off I’ll look after that…they have very little idea…a good sales job will snow them good and quick!!

12. ..however..the regulator is more than a match.....#@$%^! Salespeople Upgrade pipeline, say you What you planet on? Certainly, simple this is not! Understand principles of the code you need.

13. ...leaving sales frazzled…..did you understand that..what do I do? You need some intelligent help…where are your engineers? Oh Max … hubb a bubb a!

14. ..of course many years have passed…

15. and not only has the pipeline aged matured…. An MAOP upgrade …Ian Yes..refer Section 9 for guidelines, Max

16. What is Section 9? A set of guidelines based upon a series of principles… Every situation will have own nuances A process… But not a recipe for approval… Reliance upon… Sound engineering and review...

17. What are the principles? Understand principles of the code you need. What you principles need?

18. Principle 1 The pipeline shall be treated as a new pipeline, and shall comply with all requirements of the current edition of this Standard; The increased MAOP shall not be higher than the value determined in accordance with the hydrostatic testing principles in this Standard; The ability of the pipeline to operate safely at an increased pressure shall be demonstrated by an engineering review of each element of the pipeline system to determine its suitability for increased pressure. The engineering review shall identify and analyse pipe degradation, including time dependent degradation to provide a basis for assessing fitness for safe operation at an increased pressure. The engineering review is to be undertaken by a competent person; The design factor for the upgrades MAOP shall not exceed the lower of the design factor permitted by this Standard and 0.72 and the increased MAOP shall not result in the hoop stress at the new MAOP exceeding 72% of SMYS; The upgraded MAOP shall be approved.

19. Principle 2 The pipeline shall be treated as a new pipeline, and shall comply with all requirements of the current edition of this Standard; The increased MAOP shall not be higher than the value determined in accordance with the hydrostatic testing principles in this Standard; The ability of the pipeline to operate safely at an increased pressure shall be demonstrated by an engineering review of each element of the pipeline system to determine its suitability for increased pressure. The engineering review shall identify and analyse pipe degradation, including time dependent degradation to provide a basis for assessing fitness for safe operation at an increased pressure. The engineering review is to be undertaken by a competent person; The design factor for the upgrades MAOP shall not exceed the lower of the design factor permitted by this Standard and 0.72 and the increased MAOP shall not result in the hoop stress at the new MAOP exceeding 72% of SMYS; The upgraded MAOP shall be approved.

20. Principle 3 The pipeline shall be treated as a new pipeline, and shall comply with all requirements of the current edition of this Standard; The increased MAOP shall not be higher than the value determined in accordance with the hydrostatic testing principles in this Standard; The ability of the pipeline to operate safely at an increased pressure shall be demonstrated by an engineering review of each element of the pipeline system to determine its suitability for increased pressure. The engineering review shall identify and analyse pipe degradation, including time dependent degradation to provide a basis for assessing fitness for safe operation at an increased pressure. The engineering review is to be undertaken by a competent person; The design factor for the upgrades MAOP shall not exceed the lower of the design factor permitted by this Standard and 0.72 and the increased MAOP shall not result in the hoop stress at the new MAOP exceeding 72% of SMYS; The upgraded MAOP shall be approved.

21. Principle 4 The pipeline shall be treated as a new pipeline, and shall comply with all requirements of the current edition of this Standard; The increased MAOP shall not be higher than the value determined in accordance with the hydrostatic testing principles in this Standard; The ability of the pipeline to operate safely at an increased pressure shall be demonstrated by an engineering review of each element of the pipeline system to determine its suitability for increased pressure. The engineering review shall identify and analyse pipe degradation, including time dependent degradation to provide a basis for assessing fitness for safe operation at an increased pressure. The engineering review is to be undertaken by a competent person; The design factor for the upgrades MAOP shall not exceed the lower of the design factor permitted by this Standard and 0.72 and the increased MAOP shall not result in the hoop stress at the new MAOP exceeding 72% of SMYS; The upgraded MAOP shall be approved.

22. Principle 5 The pipeline shall be treated as a new pipeline, and shall comply with all requirements of the current edition of this Standard; The increased MAOP shall not be higher than the value determined in accordance with the hydrostatic testing principles in this Standard; The ability of the pipeline to operate safely at an increased pressure shall be demonstrated by an engineering review of each element of the pipeline system to determine its suitability for increased pressure. The engineering review shall identify and analyse pipe degradation, including time dependent degradation to provide a basis for assessing fitness for safe operation at an increased pressure. The engineering review is to be undertaken by a competent person; The design factor for the upgrades MAOP shall not exceed the lower of the design factor permitted by this Standard and 0.72 and the increased MAOP shall not result in the hoop stress at the new MAOP exceeding 72% of SMYS; The upgraded MAOP shall be approved.

23. Principles The pipeline shall be treated as a new pipeline, and shall comply with all requirements of the current edition of this Standard; The increased MAOP shall not be higher than the value determined in accordance with the hydrostatic testing principles in this Standard; The ability of the pipeline to operate safely at an increased pressure shall be demonstrated by an engineering review of each element of the pipeline system to determine its suitability for increased pressure. The engineering review shall identify and analyse pipe degradation, including time dependent degradation to provide a basis for assessing fitness for safe operation at an increased pressure. The engineering review is to be undertaken by a competent person; The design factor for the upgrades MAOP shall not exceed the lower of the design factor permitted by this Standard and 0.72 and the increased MAOP shall not result in the hoop stress at the new MAOP exceeding 72% of SMYS; The upgraded MAOP shall be approved.

24. Section 9 : Process Guidelines Preparation of Upgrade Design Basis Data collection and/or development Data analysis and assessment Safety Management Study Rectification Establish revised MAOP Approval Commissioning and testing Records Process guidelines?…Ian Yes, Max

25. What is Section 9? A set of guidelines based upon a series of principles… Every situation will have own nuances A process… But not a recipe for approval… Reliance upon… Sound engineering and review...

26. Implications for today “What you do know counts for later” Detailed design life analysis Records and documents keeping Understanding of implications through project development Operations and maintenance management Change management processes Defined and ‘archived’ policies, procedures, etc. Records Others… (Come on I know it is late!)

27. … and a word from our sponsors... Oh well, at least its over now What are you talking about, its only just beginning! Oh why are we doomed to suffer? And why are those people watching voluntarily?!” How do I get a copy… and how many can I get