January 17, 2005 AMENDED INFORMATION LETTER #OGC 04-26 SUBJECT: STANDARDS FOR PROCESSING PLANTS – Z662-03 and B31.3 This letter serves to clarify the design and construction standards for processing plants. The Pipeline Regulation, Section 12 (1) and (2), Standard for Pipelines, requires installation, operation and welding to be in accordance with CSA Z662. Section 13 requires all pumping stations and compressor stations to be installed in accordance with the requirements of Canadian Standards Association (CSA) Z662. Section 16 states the requirement of CSA Z662 for oil storage tanks (or to American Petroleum Institute (API) Standards 12B, 12D, or 12F, depending on the size and type of construction of the tank). Section 21 states the requirement for operation and maintenance procedures on oil and gas pipelines to CSA Z662, unless otherwise approved. The intent of the Regulation to specify CSA Z662 is very clear. However CSA Z662 does provide an option to use American Society of Mechanical Engineers (ASME) B31.3, as follows. CSA Z662-03 4.10.2.7.3 “It shall be permissible to design each type of piping system within compressor stations, in its entirety, in accordance with the requirements of ASME B31.3. Notes: 1) All other requirements in Clause 4 relating to compressor station design are applicable. 2) Examples of types of piping systems included are those for main service fluids, lubricating oil, water, steam, processing, and hydraulic fluids.” CSA Z662-03 4.10.3.5.4 “It shall be permissible to design each type of piping system within pump stations, in its entirety, in accordance with the requirements of ASME B31.3. Notes: 1) All other requirements in Clause 4 relating to pump station design are applicable. 2) Examples of types of piping systems included are those for main service fluids, lubricating oil, water, steam, processing, and hydraulic fluids.” CSA Z662-03 6.1.4 “Compressor and pump station piping designed in accordance with the requirements of ASME B31.3 (see Clauses 4.10.2.7.3 and 4.10.3.5.4) shall be installed in accordance with the installation requirements of ASME B31.3.” CSA Z662-03 7.2.4 “Compressor and pump station piping designed in accordance with the requirements of ASME B31.3 (see Clauses 4.10.2.7.3 and 4.10.3.5.4) shall be welded in accordance with the welding requirements of ASME B31.3, provided that the applicable requirements of Clauses 7.2.7, 7.7.11, and 7.10.2.2 of this Standard are additionally met for any welds other than partial-penetration butt welds.” CSA Z662-03 8.1.7 “Compressor and pump station piping designed in accordance with the requirements of ASME B31.3 (see Clauses 4.10.2.7.3 and 4.10.3.5.4 of this Standard) shall be pressure tested in accordance with the pressure testing requirements of ASME B31.3.” In summary, the Pipeline Regulation directs that CSA Z662 be followed. However, CSA Z662 allows a . . . 2 OFFICE OF THE COMMISSIONER #200, 10003 110 Ave Fort St. John BC V1J 6M7 Ph: (250) 261-5729 Fax: (250) 261-5744 http://www.ogc.gov.bc.ca Ph : ( 2 5 0 ) 2 6 1 - 5 7 00 24 Hr. - 2 - person to design, construct, and weld compressor stations and shipping pumps to ASME B31.3, if required. Furthermore, CSA Z662-03 1.3: “This standard does not apply to: (d) piping in natural gas liquids extraction plants, gas processing plants (except main gas stream piping in dehydration and all other processing plants installed as part of gas pipeline systems), gas manufacturing plants, industrial plants, and mines; (h) casing, tubing, or pipe in oil or gas wells, wellheads, separators, production tanks, and other production facilities.” Note that Pipeline Regulation, Section 16, Storage Tanks, refers to CSA Z662, or API 12B, 12D, or 12F, but CSA Z666-03, Clause 1.3(h) states that, “This standard does not apply to production tanks.” These are the requirements of the Pipeline Regulation and CSA Z662-03. . The Oil and Gas Commission has allowed compressor or shipping pump skid units to be built to ASME B31.3 and will continue to do so. Note that proper documentation must accompany such devices. The Commission regards the balance of the lease equipment to be CSA Z662. With regards to CSA Z662-03, Clause 1.3, which exempts separators and dehydrators from CSA Z662- 03, the Commission understands this exemption to be the actual vessels and not the interconnecting piping nor the balance of the equipment on the lease. Note that Clause 1.3 also states that this standard does not apply to gas processing plants, other than main gas stream piping. The Commission’s opinion is that CSA Z662 may be used for such piping design and construction but would also allow gas processing plant piping be designed, built and welded to ASME B31.3 or ASME B31.8. The Pipeline Regulation, Section 12 (2), requires welding to CSA Z662, CSA Z662 itself allows welding to ASME B31.3 but only where the design and construction is in accordance with that standard (ASME B31.3.). For further information, please contact: Gord Hockridge Chief Inspecting Engineer Compliance and Enforcement Branch Oil and Gas Commission 200, 10003 – 110 Avenue Fort St. John, BC V1J 6M7 Phone: (250) 261-2064 Fax: (250) 952-0301 E-mail: Gordon.Hockridge@gems7.gov.bc.ca Derek Doyle Commissioner . . . 3 . AMENDED INFORMATION LETTER #OGC 04-26 SUBJECT: STANDARDS FOR PROCESSING PLANTS – Z662- 03 and B31. 3 This letter serves to clarify the design and construction standards for processing plants. . requirements of ASME B31. 3. ” CSA Z662- 03 7.2.4 “Compressor and pump station piping designed in accordance with the requirements of ASME B31. 3 (see Clauses 4.10.2.7 .3 and 4.10 .3. 5.4) shall be welded. steam, processing, and hydraulic fluids.” CSA Z662- 03 6.1.4 “Compressor and pump station piping designed in accordance with the requirements of ASME B31. 3 (see Clauses 4.10.2.7 .3 and 4.10 .3. 5.4)