Appendix B.

Directional Drilling

Abstract
This specification is included here as an example only. It was used by Chevron U.S.A. Inc. Eastern Division Construction Engineering to install an 8-inch pipeline by directional drilling beneath the Mississippi River. This example may provide you with the basis for producing a specification for a similar project. Beware: it is not necessarily complete or applicable to any other project without modification. Modifications that should be considered are: Verification of the governing codes Verification of the governing jurisdictions (DOT, state, county, Corps of Engineers) Restatement of the project particulars to precisely fit the individual case Changes to clauses that may have been limited due to the permit or regulatory conditions imposed on the original specification The titles of some standards have been corrected. Page Scope of Specifications General Conditions Regulations and Codes Payment Insurance Safety Alterations, Modifications, Deletions and Extra Work Subcontractors Materials Installation Welding Specifications Non-Destructive Testing Coating Specifications Pressure Testing Specifications Protection of Existing Pipelines and Facilities B-2 B-4 B-5 B-6 B-6 B-6 B-7 B-8 B-8 B-9 B-10 B-11 B-11 B-11 B-12

Note

Contents I II III IV V VI VII VIII IX XI XII XIII XIV XV XVI

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Part I.

Scope of Specifications

This set of specifications shall be included as a part of the contract entered into between Chevron U.S.A. Inc., hereinafter referred to as Company, and the successful bidder, hereinafter referred to as Contractor. Any exceptions to the contract or these specifications must be accepted by Company in writing and shall be listed as an addendum of Exhibit A; the Bid Form submitted by the Contractor. A. General These specifications cover work required for fabricating, installing, and testing 8inch pipeline to cross underneath Southwest Pass of the Mississippi River. 1. 8-inch Pipeline Installation a. The following 8 inch pipeline shall be installed: 1. b. 1 8-inch Sch. 80 API 5L Grade B Seamless

Coordinates 1. Pipeline Entrance; West Bank X = 2,640,507.69 Y = 141,092.14 2. Pipeline Exit; East Bank X = 2,644,149.83 Y = 140,932.75

2.

Lines and Grades a. b. The horizontal distance between the entrance and exit points has been determined to be 3681 feet. The Contractor shall submit a bid for installation of the pipeline with top of pipe elevation of -90$ Mean Low Gulf in the appropriate sections of Exhibit A, Contractors Bid Form. The entrance and exit pipeline angles shown on the drawings are to be considered as minimum angles. The Contractor may steepen these angles, but the angles should be noted in his proposal. Tolerances - A twenty-five (25) feet shortage tolerance shall be allowed at the drill bit exit on the east bank of the river. No excess in length will be accepted. A twenty-five (25) feet tolerance will be allowed on the pipeline in a direction parallel to the canal bank.

c.

d.

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B. Location of Work This work will be performed in the vicinity of Mile 8.7 below the head of passes in Southwest Pass of the Mississippi River. The site is approximately seventeen miles south of Venice, Louisiana and is accessible by boat or helicopter only. The site is in Plaquemines Parish with state and local taxes applying to all work. An area aerial view is included in the bid proposal. The topography is typical of south Louisiana marshland locations. We propose to have the Contractor set-up the drilling rig on the west bank of the river near Chevrons W-2 Tank Battery. We further propose to have the Contractor fabricate the pipeline on the east bank of the river with the pipeline stretched out on pipe rollers and mats in the march area northeast on the pipeline exit point. C. Work To Be Done By Contractor Except as is specifically provided herein to be furnished or performed by Company, Contractor shall perform all work required for installation of the pipeline. Performance of the work includes furnishing all labor, equipment, supervision, surveying, quartering facilities, catering facilities, material (except coated pipe), transportation (except crewboat), and supplies to start, prosecute, and complete the installation of the herein described pipeline. Contractor shall furnish as-built of the 8-inch pipeline crossing prior to final payment. Installation of the pipeline shall include but not be limited to materials handling; qualifying welding procedures and welders; preparing pipe for welding; welding and repairing defective welds; radiography; furnishing materials for and installing field joiners and repairing defective joints on pipeline; laying the pipeline on rollers and mats; designing, fabricating, and installing the pipeline pulling head; drilling the pilot hole; furnishing all surveying back the pipeline; conducting a scraper test on the pipeline after installation; and performing a hydrostatic test once the pipeline is in place under the river. Contractor shall furnish all field joint coating material to consist of shrink sleeves. The Contractor shall further provide the following services related to site preparation: 1. Purchase spoil material and build drilling fluid containment pits on the east and west banks of the River (permitted size of the pits are 60' by 60' with an elevation of approximately 4' above the surrounding ground elevation). Contractors drilling rig shall be barge mounted. Set up the drilling rig at the site. Quartering facilities shall be provided by the Contractor with the facilities to be barge mounted and set up near the W-2 Tank Battery in the access canal. Contractor shall furnish quarters and mess for two (2) Company representa-

2. 3. 4.

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tives. The facilities shall be equipped with operable sewage treatment equipment. Installation and Schedule Sequence Contractor shall furnish Company a detailed installation schedule and sequence of installation before commencing work on this project. Contractor shall furnish Company with a written daily report stating footage of pipe installed and miscellaneous installations completed. Upon completion of the project, the Contractor shall level the pit walls. D. Work To Be Performed By Company 1. A 47' crewboat for daily access to the facility will be provided by the Company. This crew-boat will return to Venice daily to pick up any required supplies. The crewboat will remain in the field during shift changes to transport personnel from the quartering facility to the east bank work location; an estimated thirty minute trip one way. Materials Pipe and Shop Coating Company will furnish all line pipe with shop-applied Scotchkote 206 coating, loaded on Contractors barges or trucks at Bayou Pipe Coatings yard in New Iberia. It will be the responsibility of the Con- tractor upon receipt of materials furnished by Company, to tally all joints of pipe to the nearest one- hundredth of a foot. Particular care shall be taken by Contractor in distinguishing the tallied pipe as to size, grade, wall thickness, and type and thickness of coating if applicable. Contractor shall forward pipe tallies to Companys engineer. a. b. Joint Length: All pipe furnished will be in double random lengths. Pipe Damaged in Loading: Contractor shall refuse to accept any pipe or pipe coating damaged prior to or in loading on Contractors barge or truck. Any pipe or coating damaged after receipt of pipe by Contractor shall be repaired or replaced by Contractor at his expense.

2.

3. 4. 5. 6.

Company will perform tie-ins to the completed pipeline. Company shall furnish permits and right of ways for pipeline installations. Company shall provide a welding inspector of the project duration. Contractor shall return all excess pipe to Bayou Pipe Coating in New Iberia after the completion of the project.

Part II. General Conditions 1. 2. Contractor shall provide a competent pipeline construction superintendent to directly supervise all phases of project at all time work is being performed. Contractor shall complete work on this project by the end of March, 1988. Once having commenced work on this project Contractor shall prosecute same

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to completion with all due effort and diligence in a good and workmanlike manner. 3. 4. Contractor shall assume all lost time due to inclement weather, high seas and/or strong currents. Company reserves the right to make minor changes in construction details without invalidating this agreement as long as the general scope of the project is maintained. If such changes or additions involve additional cost to Contractor payment shall be made in accordance with Sections IV and VII of this specification. Intent of Drawings and Specifications All work that may be called for in the written material and not shown on the drawings, or shown on the draw-ings and not called for in the written material shall be performed and furnished by the contractor as if described in both ways; and should any work or material be required which is not detailed in the written agreement or drawings, either directly or indirectly but which is nevertheless necessary for the proper carrying out of the intent thereof, the Contractor is to understand the same to be implied and required, and shall perform all such work and furnish any such material as fully as if they were particularly delineated or described. 6. If the Contractors proposal is accepted, the Contractor will be required to execute Companys standard contract, affixed hereto as Exhibit F. Regulations and Codes

5.

Part III. 1.

It is the responsibility of Contractor to be in conformance with all applicable laws, ordinances, codes, regulations and orders of all governmental agencies whether federal, state or local during the life of this project. In the event Contractor is in noncompliance with a known law, ordinance, code, order or regulation Company will require property or leases until such time as Contractor is in conformance. In such case, Contractor is responsible for all costs incurred including but not limited to demobilization and remobilization of personnel and equipment. All industry accepted codes and federal regulations pertaining to pipeline installations that are referenced in this specification are hereby incorporated as if they were a part of the specification. Listed below are codes and regulations which may apply to this project. The latest edition that is published is the one that governs. a. b. c. d. e. API STD 1104 Standard for Welding Pipeline and Related Facilities ANSI/ASME B31.4 Liquid Petroleum Transportation Piping Systems ANSI/ASME B31.8 Gas Transmission and Distribution Piping Systems 49 CFR 192 Transportation of Natural and Other Gas by Pipeline 49 CFR 195 Transportation of Liquids by Pipeline

2.

3.

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f. Part IV. 1.

OCS Order 9 Oil and Gas Pipelines (Note: This order has been replaced by 30 CFR 250.) Payment

Upon completion of the work described in Section I and acceptance of finished product by Companys Project Engineer, including delivery of any required documentation, Company will pay Contractor the amount therefore. Partial payment (not to exceed actual percentage of work performed) will be authorized by Company for jobs extending beyond one month, provided extensions are not caused by procrastination, idleness, etc. on part of Contractor. A maximum of 85% payment will be allowed until absolute completion. Invoices for partial payments and payments for extra work and/or materials will be made at a minimum of monthly intervals. Insurance

2.

Part V. 1. 2.

For all operations performed by Contractor hereunder, Contractor shall carry insurance such that the coverages and limits shall be acceptable to Company. All such insurance shall be obtained by Contractor from insurance companies which are acceptable to Company, and Contractor shall furnish to Company written evidence satisfactory to Company showing that such insurance is in effect and will not be cancelled for any cause whatsoever without 30 days written notice to Company. All such insurance shall be properly endorsed to afford full protection for all operations and services offshore to be performed hereunder by Contractor. Additional information concerning insurance requirements may be obtained by contacting Ms. J.T. Kyle at 925 Gravier Street, New Orleans, Louisiana 70112 (telephone: 504-592-6262).

3.

Part VI.

Safety

The intent of these safety regulations is to outline procedures and should supplement, not replace, the Contractors safety program. The Company reserves the right of dismissal of Contractors personnel or termination of contract if a good safety program is not followed, or for deviation from the following: 1. 2. 3. 4. 5. All personnel shall wear OSHA approved safety hats and shoes. Smoking will be permitted in designated areas only. Possession or use of alcoholic beverages or illegal drugs is prohibited. Proper eye protection shall be worn when performing work which involves a recognized hazard to the eyes. Coast Guard approved work vest or life jacket, furnished by Contractor to his personnel shall be worn during all over-water transfers and when working near or over water where there are no handrails.

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6. 7. 8. 9.

Horseplay, wrestling or practical jokes are prohibited. Crane shall be operated only by capable and qualified personnel. All power tools shall be grounded and in good condition. Before welding work is authorized and started on any structure or well jacket, there shall be thorough communication between Company representative and Con- tractors personnel. The nature of work to be done and all possible hazards shall be discussed in detail so all concerned will be aware of what is going on. The same care shall be taken each day so that any situation change can be evaluated.

10. All persons shall become familiar with the functions and locations of all the structures emergency shut-ins and fire stations. 11. No cutting, welding, or sandblasting shall be performed on structures or well jackets unless authorized in writing by Company Area Production Supervisor. This authorization will be secured by the Company Supervisor in charge. 12. Never use flame to detect a gas leak. Use soapy water. 13. There shall be a Company-furnished fire watch established on the structure before the work is started. The fire watchmans only duty will be that of fire watch. The fire watch orders will be to know how to operate the fire extinguisher properly and have an extinguisher on the site near the work to be done. 14. All welding machines utilized on any structure or well jacket shall be equipped with spark arresting muffler. Part VII. 1. Alterations, Modifications, Deletions and Extra Work

Work not covered elsewhere in these specifications or attachments resulting from requests by Company and for which a mutually agreed upon price cannot be determined shall be performed under this section. Company shall have the right at any time or times before or during the actual performance of work hereunder to require additions, alterations, or deletions in contract work hereunder to require additions, alterations, or deletions in contract work by notifying the Contractor thereof in writing. If such additions, alterations or deletions materially increase the amount of work to be performed, Contractor shall not be bound to undertake same until a mutually agreeable price shall have been arrived at between Contractor and Company, or the Company Project Engineer has authorized such work to be performed on a time and materials basis. If such alterations or deletions materially decrease the amount of work to be performed, Company will be credited with an amount mutually agreeable to Company and Contractor. Payments for extra work requested by Company will be made according to hours actually worked as approved by an authorized representative of Company. Hourly rates approved prior to commencement of work shall govern amount to be paid for such work. No claims for extras will be allowed unless

2.

3.

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agreed upon in advance by Companys authorized representative requesting such services on that same day that those services occur. 4. Extra items performed on an hourly basis will be covered by job ticket issued by Contractor and approved by Company representative requesting such services on that same day that those services occur. Job tickets must contain a complete description of work, type of equipment used and the hours and signature of personnel whose time is charged against the job. Subcontractors

5.

Part VIII. 1.

This agreement shall not be assigned, sublet or transferred in whole or in part by Contractor, except with prior written consent of Company. If any subcontractors are utilized, Contractor shall be fully responsible to Company for the work performed as though Contractor had performed said work himself. Materials

Part IX. 1. 2. 3.

Contractor shall furnish any and all material not specifically stated as Company furnished. All materials furnished by Contractor shall be new, unused, undamaged and of domestic manufacture. Fittings, flanges, studs, bolts, nuts and pipe shall conform to the following specifications unless otherwise stated herein: Materials Welded fittings and flanges
Studs and Bolts

Specifications WPB 234, ASTM A105 Grade B ASTM A193 Grade B7, Cadmium Plated ASTM A194 Grade 2H, Cadmium Plated API 5L, ASTM A53 or ASTM A106 Grade B

Nuts Pipe Ring Gaskets 4.

Contractor shall furnish to Company documented proof of compliance with an acceptable specification for all items to be permanently installed in this project. This must include but is not limited to mill certificates for manufactured steel items. Substitution of equivalent materials, parts or equipment must be approved by Company. Should Contractor substitute and Company approve materials, parts or equipment of greater size, strength or working pressure than is required, payment shall be made as if the specified item was used. Company may substitute materials, parts and/or equipment at its discretion to expedite construction. It shall be Contractors responsibility to inspect all Company furnished material and to sign delivery tickets attesting to the undamaged condition and proper quantity of same. Contractor shall refuse to accept any Company

5.

6. 7.

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furnished material damaged prior to receipt by Contractor. Any material or equipment furnished by Company found damaged after receipt of contractor shall be repaired or replaced by Contractor at his expense. Copies of all delivery tickets shall be given by Company. 8. After completion of project, Contractor shall transport excess Company furnished pipe to Bayou Pipe Coatings yard in New Iberia and unload. All excess pipe shall be tallied and a copy submitted to Company. Contractor shall also furnish Company a tally of pipe installed.

Part X. Equipment 1. 2. 3. Contractor shall furnish all tugs, lay barges, material barges and any other equipment necessary for the timely completion of project. All tugs and lay barges must be equipped with operational two-way radios. Crewboats furnished by Company will standby on jobsite and be available to work on a 24-hour basis. Crewboats are to make a minimum of one scheduled run from Venice Base to jobsite each 24 hours. Company representatives shall have access to crewboats continent upon such use not interfering with progress of the project. Installation

4.

Part XI. 1.

Contractor shall furnish all labor, transportation, equipment and superintendence necessary to complete the project including quarters and mess for all personnel. Contractor shall be responsible for all materials at the jobsite. Company shall not be responsible for any material lost or left on the job. Pipeline shall be routed as per attached drawing(s). The method of installation chosen by the Contractor shall be such that during construction deviation of the pipeline from the alignment shall be kept to a minimum at all times. Each length of pipe shall be examined to ascertain that it is free from dirt or objects which may cause obstruction. If the pipe is obstructed in any way or it has an excessive amount of dirt, rust and/or scale then it shall be cleaned out before being installed in the pipeline. When unattended, the pipeline shall be effectively closed or plugged.

2. 3.

4.

5.

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Part XII.

Welding Specifications

Company has one pre-qualified welding procedure which utilizes E6010 electrodes for the stringer bead/ hot pass and E7018 electrodes for filler metal/capping. It is preferred that Contractor use this procedure, however, Contractor may submit other procedures for Company approval contingent upon the procedure being proven through destructive tests at an independent testing laboratory approved by Company. All qualifying welds and tests must be witnessed by, and a copy of the certification presented to the Company representative. Contractor shall bear all costs for qualifying welding procedures, welders and welding operators. All qualification and production welds meet the requirements of API STD 1104 and the following Company specifications. 1. All welds must have complete joint penetration at the stringer bead around the entire circumference of the pipe. No inadequate penetration is allowed under this specification. The maximum time lapse between completion of the stringer bead and the start of the hot pass shall not exceed 10 minutes. Welds which contain unacceptable discontinuities (except cracks) may be repaired at the discretion of the Company representative. Each weld which contains a crack of has been repaired twice and is still unacceptable shall be cut from the pipeline and a new weld shall replace it. The cost of repairing or replacing any defective weld, including re-examination by non-destructive testing, shall be borne by Contractor. Welding must be protected from weather conditions that could impair the quality of the completed weld. Wind screens and tarps shall be used at the discretion of the Company representative if it is deemed necessary so that weather will not impair the quality of the welding. Company reserves the right to halt welding by Contractor on this project at the discretion of the Company representative if the seas, wind, rain, temperature of any other weather conditions are adversely affecting the quality of the welds. Either external or internal line-up clamps shall be used for all production welds. When using an internal line-up clamp the stringer bead must be welded around the entire circumference of the pipe before it is removed. When the pipe is stationary, external line-up clamps are permitted providing the stringer bead is welded in at least two areas 180 opposite each other for a minimum 50% of the pipe circumference prior to the line-up clamp being removed. At the discretion of the Company representative an external line-up clamp may be used on pipe that is moving on the lay barge providing that the stringer bead is welded in at least four areas 90 from each other for a minimum of 75% of the pipe circumference prior to the line-up clamp being removed. All welds must be allowed to cool to a temperature allowing the touch of the hand prior to being placed in water.

2. 3.

4. 5.

6.

7.

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8.

Minimum acceptability standards for welds shall be in accordance with API STD 1104 modified such that no discontinuities will be allowed in the root pass. Non-Destructive Testing

Part XIII. 1.

Non-destructive testing shall be employed to inspect welds. The cost of such inspection shall be borne by Contractor. The expense of retesting welds after repair or replacement shall also be borne by Contractor. The primary testing method is radiography. Where radiography is utilized the procedures shall conform to API STD 1104. Company has the right to view radiographs of welds during construction. In the event that an unresolved difference of opinion exists between Company and Contractor over the disposition of a repair to a weld, the weld in question shall be cut from the line and subjected to destructive tests as if it were a procedure qualification weld in accordance with API STD 1104. If the weld passes the destructive tests Company will bear the cost of replacement. In the event the weld fails the test Contractor will bear the cost of replacement. When radiography is employed the standards of acceptability shall be the same as stated in API STD 1104 except that no inadequate penetration of the stringer bead will be allowed. Coating Specifications

2. 3. 4.

5.

Part XIV. 1.

Contractor shall provide all necessary materials, of a type suitable to Company, to coat all field joints and make repairs to holidays in existing coating systems. All coating materials furnished by Contractor must be compatible with the primary pipe coating and applied in accordance with the manufacturers recommended procedure. Contractor shall remove all foreign particles, weld slag, loose mill scale, grease, etc. from pipe prior to coating joints or repairing damaged coating. Coating must be applied in such a manner, and allowed to harden to a state, whereby there is no damage caused by transporting the pipe over rollers, tensioning devices, stringers, etc. off the end of the lay barge. Contractor shall furnish a suitable company approved holiday detector and shall test the coating system for the entire length of the pipeline. All coating defects or damage shall be repaired by Contractor at this expense. Pressure Testing Specifications

2. 3.

4.

Part XV. 1.

Contractor shall furnish all necessary labor, supervision, tools, pumps, temporary piping, calibrated pressure and temperature recorders, calibrated gauges, fittings hoses, dead weight tester and all other equipment and materials for cleaning and pressure testing each section of pipeline installed by Contractor. Pressure tests shall be performed to 2160 psig for 24 hours unless otherwise directed by Company.

2.

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3.

Pressure testing instruments furnished by Contractor are to be a brand and model acceptable to Company. Proof of calibration within the last 6 months shall be supplied to Company by Contractor. Contractor shall submit pressure testing procedures and schedules for review and acceptance by Company prior to implementation. No pressure testing shall be preformed unless a Company representative is on site to witness same. Company shall be notified a minimum of 24 hours prior to test. Upon completion of laying and burying lines and installing test heads and scraper receiver/launchers Contractor shall run a gauging scraper acceptable to Company to determine if line is free of all debris. The outside diameter of the gauge plate shall be the same as the inside diameter of the pipe less one/half inch. After completely filling the lines to be hydrostatically tested with water, the pressure in the pipeline will be brought to the specified test pressure. Pressure shall be monitored with calibrated recording pressure and temperature gauges. Contractor shall furnish a dead weight tester along with all necessary fittings, etc. to monitor test. Contractor shall record the time of day, line pressure and the temperature at 30 minute intervals throughout the entire 2 hour test. After acceptance of hydrostatic test by Company, Contractor shall furnish Company with a test report in a form acceptable to Company. This report shall include the test charts, dated and certified by the Contractor and Company representative, descriptions, serial numbers and calibration certificates for the instruments, dead weight logs, the reason for the failure during a test, the name of the person responsible for the test, the name of the test company, date and time of the test, the minimum test pressure, the test medium, a description of the pipeline tested and an explanation of any pressure discontinuities that appear on any chart. Any repairs necessary as a result of the tests on lines installed by Contractor shall be made at Contractors expense and the line shall be retested.

4. 5.

6.

7.

8.

9.

10. Contractor shall remove water from pipeline after the acceptance of the hydrostatic test by Company. Part XVI. 1. Protection of Existing Pipelines and Facilities

Contractor shall take necessary precautions so as not to damage any existing pipelines or facilities. The proposed 8 inch pipeline will cross underneath Chevrons W-2 & S.P.27 Tank Batteries. Pipelines on the East Bank that Could Affect Steering Tool Several flowlines run parallel the east bank of the river and might affect the steering tool accuracy. The flowlines are two and three inches in size with one of two feet cover.

2.

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