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SPECIFICATION No. Page 1 of 11
IP-1.0.0 IN-LINE INSPECTION OF PIPELINES

TABLE OF CONTENTS

SECTION PAGE

1.0 GENERAL 2

2.0 DEFINITIONS 2

3.0 INSPECTION PERSONNEL 3

4.0 INSPECTION EQUIPMENT 3

5.0 INSPECTION PROCEDURE 5

6.0 PRODUCTION INSPECTIONS 6

7.0 FEATURE REPORTING 8

REV. No. REVIEWED APPROVED DATE DESCRIPTION

Original Issue
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1.0 GENERAL

1.1 Scope:

This specification establishes the requirements and reporting format for in-line
inspections of pipelines for both deformations using a caliper type vehicle or localized
areas of wall loss using an instrumented inspection vehicle (smart pig).

1.2 Repsol-YPF Ecuador Inc. referred to herein as REPSOL-YPF, shall have the right to
examine all output records after the inspection run has been completed to ensure
compliance with the feature reporting detailed in Section 7, REPSOL-YPF shall also
have the right to inspect any feature for the purpose of evaluating the accuracy of the in-
line inspection measurements.

1.3 The contractor shall be responsible for confirming the compatibility of the inspection
vehicle with REPSOL-YPF facilities and assumes responsibility for requesting any
additional information to make this determination.

1.4 Pipeline sections shall be inspected with an inspection vehicle which is capable of 100%
coverage of the pipeline. Where such coverage is not achieved, any necessary for re-
examination will be decided by consultation after reviewing the expected shorfall.

2.0 DEFINITIONS

2.1 Pipeline shall mean below ground (with some exceptions, i.e. station tie-ins, valve
stations) pipeline used for the transmission of produced fluids.

2.2 Instrumented Inspection Vehicle shall mean, the instrumented (electronic) inspection
vehicle, or "smart pig", utilized to perform the pipeline examination from inside the
pipeline for localized areas of metal loss or the reduction in wall thickness.

2.3 Caliper Type Vehicle shall mean the mechanical, caliper type instrument used to gage
the inside diameter of a pipeline for localized areas of deformations or dents.

2.4 Metal Loss shall mean any locations along the pipe surface, either internal or external,
which have experienced a local reduction in wall thickness. In all but a few cases
corrosion will be responsible for this metal loss.

2.5 Deformation shall mean a localized indentation which has caused a reduction in the pipe
bore (usually referred to as dents).
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2.6 Feature shall mean any specific, local, identifiable detail on a pipeline such as a weld,
fitting, reference point, metal loss or deformation.

3.0 INSPECTION PERSONNEL

3.1 Personnel referred to herein as Technicians shall be fully trained and experienced. The
Contractor shall have on file documentation available to confirm the Technician's
relevant experience prior to the beginning of any work.

3.2 The Contractor shall assign one Lead Technician to each inspection unit to serve as a
single point of contact (SPOC) for REPSOL-YPF and its representatives.

3.3 REPSOL-YPF shall have the right to examine the qualifications of all Technicians to
ensure that they meet the requirements of this section.

4.0 INSPECTION EQUIPMENT

4.1 The condition and maintenance of the inspection equipment shall be subject to
REPSOL-YPF approval. Ample supplies, spare parts and necessary standby equipment
shall be on site to ensure that the pipeline inspection schedule is not delayed.

4.2 REPSOL-YPF will provide and assume responsibility for the accuracy of relevant
pipeline data requested by the vendor.

4.3 Instrumented Inspection Vehicles

4.3.1 Inspections shall be performed using instrumented inspection vehicle(s) capable

of:

(a) Inspecting the complete inside and outside surfaces of the pipeline for
localized areas of metal loss;

(b) Providing a complete inspection in one run between launcher and

receiver traps located up to 77 Km (48 miles) apart;

(c) Passing of bends with a radius (as defined in ANSI B16.9) of 3.0 times
the outside diameter of the pipe unless otherwise specified by REPSOL-
YPF.

(d) Passing full opening unbarred branch connections providing that they
are located in the top half of the pipe and that side flows can be isolated
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(all fittings will be identified by REPSOL-YPF and discussed with the

Contractor):

(e) Operating at pressures of up to 1400 psig;

(f) Operating in produced fluids, seawater or natural gas as applicable;

(g) Operating in fluid or gas temperatures of up to 220oF (104oC);

(h) Passing a minimum bore of 90% of the inside diameter;

(i) Providing the lineal location of any relevant feature with a precision limit
or + 2% from the nearest REPSOL-YPF provided reference;

(j) Providing the circumferential location of an indication within + 30

degrees of pipe circumference;

(k) Detecting any metal loss locations which exceed 10% of the nominal
wall thickness in depth within the minimum diameter limitations of the
inspection vehicle;

(l) Sizing any metal loss location which exceed 20% of the nominal wall
thickness in depth. The dimensions shall provide depth, longitudinal
length, and circumferential length with precision as follows:

Depth: + 10% of nominal wall thickness

Longitudinal length: + 10% of length of defect

Circumferential length: + 3 inches (76 mm)

4.4 Caliper Type Vehicles

4.4.1 Inspections shall be performed using caliper type vehicle(s) capable of:

(a) Inspecting the complete inside surface of the pipeline for areas of
deformation;

(b) Providing a complete inspection in one run between launcher and

receiver traps located up to 77 Km (48 miles) apart;

(c) Passing bends with a radius (as defined in ANSI B16.9) or 3.0 times the
outside diameter of the pipe unless otherwise specified by REPSOL-
YPF;
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(d) Passing full opening unbarred branch connections providing that they
are in the top half of the pipe and that side flows can be isolated (all
fittings shall be identified by REPSOL-YPF and discussed with the
Contractor);

(e) Operating at pressures of up to 1400 psig;

(f) Operating in produced fluids, seawater or natural gas as applicable;

(g) Operating in fluid or gas temperatures of up to 220oF (104oC);

(h) Identification of pipe bore changes (synonymous to wall thickness

changes);

(i) Passing a minimum bore of 75% of the inside diameter;

(j) Providing the linear location of any relevant feature with a precision limit
of + 5% from the nearest REPSOL-YPF provided reference;

(k) Detecting and sizing any deformations which exceed 2% of the pipeline
nominal internal diameter. The dimensions shall provide an accuracy +
1% of pipeline nominal internal diameter.

5.0 INSPECTION PROCEDURES

5.1 A procedure for the production of inspection results shall be established prior to the start
of an inspection program. Inspection records produced by the use of this procedure and
accepted by REPSOL-YPF shall be the minimum level of quality for acceptance.

5.2 A copy of the procedure shall be retained by Repsol-YPF and the Contractor. The
procedure shall be readily available during the inspection program.

5.3 The recorded inspection procedure shall include, but not be limited to, the following:

(a) Line pipe diameter range for which the procedure is suitable;

(b) Line pipe wall thickness range for which the procedure is suitable;

(c) Velocity and pressure ranges to be used for running the inspection tool, with
details of the procedures for controlling the velocity of the inspection tool;

(d) Temperature ranges for which the procedure is suitable;

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(e) Procedure for positioning locator devices;

(f) Method for calibrating odometer and metal loss measurement or caliper
components;

(g) Type of data storage to be used;

(h) Recommended practice for preserving the quality of output data.

5.4 The following points shall be used by REPSOL-YPF to evaluate the inspection
procedure:

(a) Data quality (free of processing irregularities);

(b) Compatibility with inspection quality standards as set forth in Section 4;

(c) Identification of inspection records;

(d) Technique and set up.

5.5 All requirements for the quality of the resulting inspection shall apply to data produced
either electronically or mechanically.

6.0 PRODUCTION INSPECTIONS

6.1 Only REPSOL-YPF approved, Contractor produced inspection procedures shall be used.

6.2 REPSOL-YPF and the Contractor shall jointly determine when a sufficient number of line
sizing and cleaning runs have been completed prior to the actual inspection vehicle run.

6.3 Any inspection runs with incomplete or unacceptable data per Section 4 due to
inspection vehicle malfunction will be rerun at the discretion of Repsol-YPF and at the
Contractor's expense. Disposition and charges for failed runs due to pipeline cleanliness
or operating conditions will be resolved on site between Repsol-YPF and the Contractor.

6.4 At REPSOL-YPF's discretion, a field verification may be performed by Repsol-YPF to

confirm the accuracy of the instrumented inspection vehicle data. The data may be
retained by Repsol-YPF as a permanent record.
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7.0 FEATURE REPORTING

7.1 General

7.1.1 Repsol-YPF will provide the Contractor with single line drawings(s) of all pipelines
to be inspected. All relevant reference points such as road crossings, river
crossings, wall thickness changes, CP Test Stations, valve stations, anchor
blocks and elevation changes will be clearly identified.

7.1.2 Reference points that are to be included in the final report will be indicated on the
Repsol-YPF supplied drawing(s) and designated with a Repsol-YPF station
number, drawing number, and description.

7.1.3 All features shall be referenced to center line of references (CP Test stations,
valve stations, etc.)

7.2 Interaction Rules

7.2.1 The interaction rules are intended to represent the physical interaction between
separate areas of metal loss (boxes) as illustrated in Figure 1. X and Y
coordinates may be substituted for the radius dimension.

7.2.2 Circumferential clusters apply only to defects that are located within two inches of
a girth weld and are separated by 1 inch or less radially around the pipe.

7.2.3 Longitudinal clusters apply to defects that are located along the longitudinal axis
of the pipe and any edge of one defect is separated by 1 inch or less on any
direction from any edge of an adjacent defect.

7.2.4 The interaction rule to be used in the completion of the Pipeline Inspection report
are:

(1) Defects are classified as "IN A WELD REGION" or "NOR IN A WELD

REGION" as follows:

(a) IN A WELD REGION if the closest edge of the defect is < 2 inches
from the center of the girth weld measured in a longitudinal
direction.

(b) NOT IN A WELD REGION otherwise.

(2) Interaction between two "NOT IN A WELD REGION" metal loss boxes
occurs to produce a cluster (group or network) if:
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(a) The longitudinal separation of the boxes is < 1 inch AND

(b) The circumferential separation of the boxes is < 1 inch.

(3) Interaction between two "IN A WELD REGION" metal loss boxes occurs
to produce cluster (group or network) if:
(a) The circumferential separation of the boxes is < 1 inch.

(4) Interaction between a "NOT IN A WELD REGION" metal loss box and
an "IN A WELD REGION" metal loss box occurs to produce a cluster
(group or network) if:

(a) The longitudinal separation of the boxes is < 1 inch AND

(b) The circumferential separation of the boxes is < 1 inch.

(5) Interaction between two metal loss boxes also occurs to produce a
cluster if they both interact with a third.

7.3 Reporting Format - Instrumented Inspection Vehicles

7.3.1 All girth welds, detected metal loss features, and designated REPSOL-YPF reference
points shall be included in the report.

7.3.2 Data will be submitted to REPSOL-YPF on 3.5-inch High Density floppy disks. Disk
format shall be IBM-compatible DOS or Windows with the latter being the preferred.

7.3.3 A single record may report a weld, REPSOL-YPF reference, metal loss feature, or any
combination of these three features that occur at the same longitudinal location.

7.3.4 The following fields shall be included in the order and format noted (ref. Table 1). All
information shall be provided for each feature unless specifically noted:

(a) Absolute Distance: Cumulative distance from the launch location to the
feature(s). (Inger, 6 digits);

(b) Weld Number: The sequential number of each pipeline girth weld, beginning at
the launch end of the pipeline. This field is required for each girth weld. (Integer,
4 digits);

(c) REPSOL-YPF References: All references to be shown on the final report will be
indicated on REPSOL-YPF supplied drawings and shall be identified as follows:

(i) Station Number: (Text, 12 characters, no spaces, UPPER CASE);

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(ii) Drawing Number: (Text, 15 characters, no spaces, UPPER CASE);

(iii) Description: anchor, weld, etc. (Text, 30 characters);

(iv) REPSOL-YPF will, upon request, provide an electronic version of this

reporting format template to be completed by the vendor;

(d) Metal Loss Feature Description: All metal loss features shall be described as
follows:

(i) Depth: actual depth of feature expressed as a percentage of the

nominal pipe wall thickness, rounded to the nearest percent. (Integer, 3
digits);
(ii) Length: Maximum axial (longitudinal) extent of feature in inches,
rounded to the nearest inch. (Integer, 3 digits);

(iii) Width: Maximum circumferential extent of feature in inches, rounded to

the nearest inch. (Integer, 5 digits);

(iv) Azimuth: The centerline of the feature, given as an o'clock position

viewed in the direction of vehicle travel, rounded to the nearest half-
hour. (Text, 5 characters, HH:MM);

(v) Internal (1) or external (E) features reported, as a minimum, 18 inches

(457mm) either side of each girth weld. If not discernible, leave blank.
(Text, 1 character, UPPER CASE);

(vi) Comments or description of feature. (Text, 30 characters).

7.3.5 The records shall be sorted in ascending order by Absolute Distance.

7.4 Reporting Format - Caliper Type Vehicles

7.4.1 All designated REPSOL-YPF reference points shall be included in the report.

7.4.2 All deformations in excess of 2% (calculated where the pipe bore is reduced by
an amount equal to or greater than 2% of the pipe's nominal internal diameter)
are to be sized and reported.

7.4.3 All deformations on welds shall be included in the report, regardless of size.

7.4.4 Data will be submitted to REPSOL-YPF on 3.5-inch High Density floppy disks.
Disk format shall be either IBM-compatible DOS or Mackintosh, with the latter
being the preferred.
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7.4.5 File format shall be ASCII. Each field shall be separated by a tab character
(ASCII - 9). Each record shall be ended by a carriage-return (ASCII - 13).

7.4.6 A single record may report a weld, REPSOL-YPF reference, deformation feature,
or any combination of these three features that occur at the same longitudinal
location.

7.4.7 The following fields shall be included in the order and format noted (ref. Table 2).
All information shall be provided for each feature unless specifically noted:

(a) Absolute Distance: Cumulative distance from the launch location to the
feature(s). (Integer, 4 digits);

(b) Weld Number: The sequential number of each pipeline girth weld,
beginning at the launch end of the pipeline. This field is required for
each girth weld. (Integer, 4 digits);

(c) REPSOL-YPF References: All references to be shown on the final

report will be indicated on REPSOL-YPF supplied drawings and shall be
identified as follows:

(i) Station Number: (Text, 12 characters, no spaces, UPPER CASE);

(ii) Drawing Number: (Text, 15 characters, no spaces, UPPER

CASE);

(iii) Description: anchor, weld, etc. (Text, 30 characters).

(d) Deformation Description: All deformation shall be described as follows:

(i) Deformation in weld; YES (y) or NO (N) (Text, 1 character,

UPPER CASE);

(ii) Extent: Measurement of deformation, expressed as a percentage

of the pipeline outside diameter. (Integer, 3 digits);

(iii) Comment or description of deformation. (Text, 30 characters).

7.4.8 The records shall be sorted in ascending order by Absolute Distance.

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Table 1 - Sample Data

Instrumented Inspection Vehicle

Abs Dist. Weld REPSOL-YPF Reference Metal Loss Feature Description

(mt) Num
.
Sta. # Dwg.# Descr. Depth Lengt Width Azimuth Internal/External Comments
%T h (inch)
(inch)

1705.2 Km CC0122 CP TEST

5+60 6 STATION

1736.5 25 42 2.5 4.5 4:30 I WELD

1748.5 66 12.6 2.2 1:30 E

1777.0 26

1810.5 Km CC0122 GIRTH 55 27.5 1.0 6:00 I TROUGH

20+200 6 WELD

Table 2 - Sample Data

Caliper Type Vehicle

Abs Weld REPSOL-YPF Reference Damage Description

Dist. Num.
(mt)
Sta. # Dwg.# Descr. in Extent Comments
Weld? (% Dia.)

1705.2 25 Km CC0122 CP TEST N 25 DENT

17+250 6 STATION