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SPECIFICATION No. SPECIFICATION FOR SEAMLESS PIPE
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TABLE OF CONTENTS

SECTION PAGE

1.0 SCOPE 2

2.0 DEFINITIONS 2

3.0 CODES AND STANDARDS 2

4.0 MANUFACTURING REQUIREMENTS 3

5.0 DOCUMENTS 4

6.0 PIPE FABRICATION 5

7.0 DIMENSIONS, LENGTHS AND WEIGHTS 5

8.0 MECHANICAL PROPERTIES AND TESTS 6

9.0 NON-DESTRUCTIVE INSPECTION 7

10.0 HYDROSTATIC TESTING 9

11.0 WORKMANSHIP, VISUAL INSPECTION, AND

REPAIR OF DEFECTS 9

12.0 MARKING AND COATING 10

13.0 SHIPPING 10

14.0 GUARANTEE 11

15.0 DUNNAGE 11

REV. No. REVIEWED APPROVED DATE DESCRIPTION

01 Original Issue
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1.0 SCOPE

1.1 This specification details supplementary requirements to the American Petroleum

Institute, Specification for Line Pipe referred to as API Specification 5L. This
specification shall be considered as an addition to API Specification 5L for the
manufacture of seamless line pipe, Grades X-60 and lower.

1.2 Pipe supplied to this specification shall meet or exceed all requirements of API
Specification 5L for Line Pipe and the additional provisions of this specification. It shall
also be API monogrammed to demonstrate compliance with the API 5L requirements.

2.0 DEFINITIONS

Buyer Owner and/or Engineer

Seller Prime supplier and representative of all subsuppliers and facilities employed in
the pipe manufacture. Seller is responsible for the delivery and of all documents
and materials provided under this specification.

Fabricator Manufacturer of the pipe if other than Vendor

Manufacturer Manufacturer of the steel for the pipe.

3.0 CODES AND STANDARDS

Provisions of the latest revision of the following Codes and Standards shall apply except as
modified or supplemented by this specification.

AMERICAN NATIONAL STANDARDS INSTITUTE (ANSI)

ANSI B 31.4 Liquid Petroleum Transportation Piping System

ANSI B 31.8 Gas Transmission and Distribution Piping Systems

AMERICAN PETROLEUM INSTITUTE (API)

API Spec 5L API Specification for Line Pipe

API RP 5L1 Recommended Practice for Railroad Transportation of Line Pipe.

API RP 5L5 Recommended Practice for Marine Transportation of Line Pipe

API 1104 Standard for Welding Pipelines and Related Facilities

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AMERICAN SOCIETY FOR TESTING AND MATERIALS (ASTM)

ASTM A 370 Mechanical Testing of Steel Products

ASTM E 3 Methods of Preparation of Metallic Materials

ASTM E 92 Standard Test Method for Vickers Hardness of Metallic Materials

ASTM E 112 Methods for Determining Average Grain Size

4.0 MANUFACTURING REQUIREMENTS

4.1 Melting and Casting

The steel shall be manufactured by the Basic Oxygen Furnace (BOF) or Electric Arc
Furnace process and shall be fully killed, calcium treated and fine grain practice. The
steel shall be vacuum degassed or argon treated.

4.2 The grain size shall be determined on one (1) pipe per two hundred (200) pipes or less
from each pipe lot. The specimen shall be prepared and etched for metallographic
examination at 100x magnification.

4.3 Chemical Composition

The composition of the steel, as determined by heat and product analysis, shall
conform to the following requirements:

Production Analysis

Element X42 (Max%) X60 (Max%)

Carbon 0.14 0.14

Manganese 1.25 1.35
Silicon 0.30 0.30
Sulfur 0.010 0.010
Phosphorus 0.020 0.020
Niobium 0.050 0.050
Nitrogen 0.010 0.010
Vanadium 0.060 0.060
Titanium 0.050 0.050
Aluminum 0.025 0.025
Copper 0.250 0.250
Chromium 0.250 0.250
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Element X42 (Max%) X60 (Max%)

Nickel 0.400 0.400

Molybdenum 0.080 0.080
Calcium 0.006 0.006
Tin 0.010 0.010

All percentages shown are maximum for product analysis. The Nb + V + Ti shall not
exceed 0.15%. The sum of Cu + Cr + Ni + Mo shall not exceed 0.60%.

The carbon equivalent (CE) based on product analysis, calculated by the following
formula shall not exceed 0.40 as calculated by the IIW Formula.

CE =C + (Mn/6)+(Cr + Mo + V)/5 +(Ni + Cu)/15

4.4 Seller shall provide the BUYER a report giving the ladle analysis of each heat of steel
used in the manufacture of the pipe.

4.5 The Seller shall provide the BUYER a certified product analysis of finished pipe. The
product analysis shall include all elements listed in this specification and any other
intentionally added elements, and shall be performed on one (1) pipe length per two
hundred (200) pipe lengths or less for each pipe lot and size. A pipe "LOT" is defined as
all pipe manufactured from the sane heat of steel having the same diameter and wall
thickness.

4.6 Seller shall provide the BUYER a certified heat analysis of each heat of steel used for
this order. The analysis shall include all elements listed in paragraph 4.3, plus any
intentionally added elements listed in paragraph 4.3.

4.7 Re-check analysis requirements and acceptance criteria shall conform to API
Specification 5L, except in event that the recheck analysis fail to meet the criteria. The
Seller may elect to rest each pipe length individually, then the analysis shall be made
for all elements listed in paragraph 4.3. Re-check analysis shall be to the Fabricator's
account.

5.0 DOCUMENTS

SELLER shall provide the BUYER the following documents prior to production.

5.1 A description of the steel making process which include deoxidation and desulfurization
practice, casting method, slab treatment, argon blowing, vacuum degassing, and any
special treatment such as shape control.
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5.2 A Quality Control Manual which provides details of the inspection and testing
procedures. The details shall include inspection frequency, dimensional tolerances,
acceptance/rejection criteria, calibration frequencies and procedures, etc. A Quality
Control Manual shall be provided to the Company by the Steel Producer and the Pipe
Fabricator

5.3 A description of the pipe manufacturing procedure shall be submitted to the Buyer for
review and written approval prior to the start of pipe manufacture. This procedure shall
detail all manufacturing, inspection and testing practices.

6.0 PIPE FABRICATION

6.1 Pipe produced to this specification shall be manufactured by the seamless (hot finished)
process which produces pipe that conforms to the minimum requirements of this
specification and shall have a grain size of ASTM NO.8 o finer and shall be equixed per
ASTM E-112.

6.2 The Seller shall perform all tensile, notch ductility, metallographic, bend, hardness and
other tests described in this specification and API 5L. Results of all tests shall be
recorded and provided to the BUYER prior to the loading of the pipe for shipment.

7.0 DIMENSIONS, LENGTHS AND WEIGHTS

Dimensions, lengths, weights and straightness of pipe shall comply with API 5L, Section 6 with
the following additional requirements:

7.1 Pipe shall be 35 feet (10.8 M) to 44 feet (13.5 M) with a maximum of 5 percent between
26 feet (8 M) and 35 feet (10.8 M).

7.2 Jointers shall not be allowed.

7.3 Outside Diameter

The nominal inside diameter is defined ad the nominal outside diameter minus twice the
nominal wall thickness. The nominal outside diameter of the pipe shall not be more than
0.75 percent larger than specified, nor more than 0.25 percent smaller than specified as
measured with a diameter tape.

7.4 Pipe Ends

Pipe diameters shall not be more than 1/32 inch (0.79 mm) smaller nor 3/32 inch (2.4
mm) larger than the nominal specified outside diameter for a distance of four (4) inches
from each pipe end.
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7.5 Out-of-Roundness

Both ends of every pipe shall be checked for out-of -roundness by the use of an inside
rod gauge or approved equal. The length of this gauge shall be equal to the nominal
I.D. minus 1/8 inch (3.2 mm). The rod gauge must pass freely through the outermost 4
inches (100 mm) of the pipe at any orientation normal to the pipe axis.

7.6 Wall Thickness

The wall thickness shall not deviate from the nominal by more than plus 15 percent or
minus 5 percent.

7.7 Straightness

Deviation from a straight line shall not exceed 0,20 percent of the pipe length.
Measurements shall be made using a taut string or wire from end to end along the pipe
measuring the greatest deviation. No less than one of every five pipes shall be checked
as well as any pipe, which does not appear to meet this requirement.

7.8 Bevels

Pipe bevels shall comply with the requirements of API 5L unless otherwise noted in the
purchase order.

7.9 Weight

Weight of the pipe shall be in accordance with API 5L unless otherwise noted in the
purchase order.

8.0 MECHANICAL PROPERTIES AND TESTS

8.1 Tensile Properties

8.1.1 The transverse yield and tensile strength specimens shall be selected in
accordance with API 5L paragraph 4.2 "Tensile Tests". One pipe length per one
hundred (100) pipe lengths or less of each pipe lot or size shall be tested.

8.1.2 The yield strength of the pipe material shall not exceed the minimum specified
yield strength by more than 15,000 psi.
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8.1.3 The ratio of yield strength to tensile strength shall not exceed 0.85.
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8.1.4 To determine the required number of mechanical tests, a lot shall be as defined
in paragraph 4.5.

8.2 Notch Ductility

8.2.1 All pipe material shall be charpy V-notch (Type A notch) impact tested in
accordance with ASTM A-370.

8.2.2 All testing shall be conducted at 0 degree F (-17.5 deg.C).

8.2.3 All specimens shall be removed from the pipe in accordance with the
requirements of API 5L.

8.2.4 Impact properties shall be determined from one (1) pipe length per one hundred
(100) pipes or less from each pipe lot.

8.2.5 All pipe material shall conform to the minimum allowable impact strength of 30 ft-
lb average with a lowest minimum value of 23 ft-lb. The Charpy shear
specimens shall exhibit a minimum 80 percent shear for acceptance.

8.3 Hardness Test

8.3.1 Seamless pipe shall have a hardness measurement conducted be excising a

through wall cross section specimen from the pipe. The sample shall be
polished and hardness measurements shall be taken at the center of the
specimen and one mm from the outside and inside surfaces.

8.3.2 The hardness traverse shall be conducted on one (1) pipe per 100 lengths per
pipe lot. Hardness shall not exceed HV10-250. A hardness diagram shall be
provided which illustrates the hardness survey results.

8.4 The SELLER shall provide to the BUYER prior to final acceptance of pipe materials a
certified report of mechanical properties.

8.4.1 Non-conformance of any of the required mechanical properties, e,g., yield

strength, impact requirements, hardness, etc., shall be cause for rejection.

9.0 NON-DESTRUCTIVE INSPECTION

9.1 Inspection Equipment

Ultrasonic or Electromagnetic inspection shall be employed. Calibration may be based

upon either notches or holes, however, reference standards shall contain both notches
and holes. The Seller shall provide, for BUYER approval, a complete description of his
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proposed procedures including a complete description of the equipment, the number,

size, angle, frequency, mode and location of the transducers, etc. The Seller shall
demonstrate to the satisfaction of the BUYER the effectiveness of his equipment.

9.2 Inspection Procedures

9.2.1 Seamless pipe shall be examined full length by ultrasonic methods in

accordance with API 5L, Supplementary Requirement 5R4, "Non-Destructive
Inspection of Seamless Line Pipe".

9.2.2 Final non-destructive examination of pipe shall be performed after hydrotest.

9.2.3 Each individual pipe shall be 100 percent inspected in accordance with API 5L,
"Ultrasonic or Electromagnetic Inspection". A description of the equipment and
the procedure to be used shall be submitted to the BUYER for review and
approval prior to production of the pipe.

9.2.4 Prior to pipe production, the BUYER shall witness conduct of the ultrasonic test
procedure and equipment by the Seller.

9.2.5 Requirements for ultrasonic inspection equipment and testing shall be in

accordance with paragraph E4.3 Ultrasonic or Electromagnetic Inspection". A
description of the equipment and the procedure to be used shall be submitted to
the Buyer for review and approval prior to production of pipe.

9.2.6 The equipment shall include a monitoring, audible signal, and a visual recording
system, (for permanent record) to indicate reflections which exceed that of the
calibration notch standard.

9.2.7 The ultrasonic test equipment shall be calibrated at least twice per shift.

9.2.8 The transducers with a frequency of 2 MHZ or higher shall be used. The
ultrasonic inspection equipment shall inspect the pipe body longitudinal with the
transducers spaced at a maximum of 4 inches (100 mm) intervals around the
pipe. Seamless pipe may be examined spirally or longitudinal with transducer
spacing as specified above.

9.2.9 The reference standard shall contain calibration notches for calibration of the
ultrasonic teat instrument to the following:

Depth: 10 percent maximum of nominal pipe wall thickness.

Width: 0.030 inch maximum.

Length: one (1) inch.

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Calibration Standard: Notches shall be located on both the O.D. and I.D.
surfaces of each calibration standard.

9.2.10 The pipe ends and bevels shall be 100 percent inspected by ultrasonics and
shall include a band 1 inch wide around the circumference of the pipe at each
bevel. Compression wave ultrasonics shall be used to scan for lamination and
laminar type defects.

9.2.11 A detailed procedure for ultrasonic inspection to be used shall be submitted to

the Buyer for review and approval prior to initiation of pipe production.

9.2.12 Acceptance standards for ultrasonically tested pipe shall be as follows: Any
indication (refection echo) from the defect which exceeds the magnitude of the
calibration not shall be cause for rejection of that length of pipe.

10.0 HYDROSTATIC TESTING

10.1 Each length of pie shall withstand, without leakage, a hydrostatic test to a pressure,
which will cause a circumferential fiber stress of 95 percent minimum of the specified
minimum yield strength of the pipe. The pressure shall be computed by the formula
given in API 5L Supplement 1 dated May 31, 1986. The test pressure shall be held for
not less than 20 seconds.

10.2 The tester shall be equipped with a recording gauge that will record test pressure and
duration of time applied to each length of pipe. Test reports shall be available to the
inspector at all times.

11.0 WORKMANSHIP, VISUAL INSPECTION, AND REPAIR OF DEFECTS

11.1 All first day production tests will be witnessed and all pipe will be inspected by Buyers
representatives. Sufficient notice (at least 14 days) shall be given by the Seller of the
time at which the run is to begin.

11.2 The Buyer's representatives shall have referee entry at all times to all parts of the
manufacturer's works which will be concerned with the manufacture, testing, inspection,
quality control and shipping of the pipe ordered, including the steel mill. The steel mill
and pipe mill shall make available to the Buyer's representatives without charge, all
reasonable facilities to inspect, measure, and test the material and pipe in all stages of
production including, for example, ultrasonic wall thickness.

11.3 The Buyer's representatives shall have the option to examine all materials rejected for
any reason. If any rest specimen fails to meet the requirements for any reason, this
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shall be brought to the attention of the Buyer's representative, and all affected shall he
retained until examined by the Buyer's representative.

11.4 The Seller shall provide an area in the mill to allow the Buyer's representatives to
inspect each length of pipe after manufacture and testing are completed, but prior to
loading for shipment, The area shall contain a means for rotating the pipe, and ample
lighting to facilitate through visual inspection of both internal and external surfaces.

11.5 It is possible that this pipe will be externally coated with a thin film type of coating.
Therefore, the manufacturer shall take all reasonable precautions to insure that the pipe
surface is free from imperfections which might interfere with the efficient application of
thiN film coatinG and result in a disproportionate number of holidays. In addition, the
metal surfaces shall be sufficiently clean and smooth so as to permit non-destructive
examination. All loose scale shall be removed, and pitting and rough surfaces removed
by grinding. Pipe shall have a workmanlike finish, and the manufacturer shall remove by
grinding, mechanical marks an abrasion, such as cable marks, dings, roll marks, scores,
etc., and also imperfections such as scabs, seams, laps, tears, and slivers, even though
these are shallow enough to be within wall thickness tolerances.

11.6 The pipe shall contain no dents, which affect the curvature of the pipe at the
longitudinal weld or at the pipe ends. Pounding out or jacking out dents is prohibited.

11.7 Weld repairs are not permitted.

12.0 MARKING AND COATING

12.1 Pipe shall be paint stenciled, on the outside, in accordance with Section 11, API 5L.
Pipe shall show both weight per foot and wall thickness. Sizes, weights, lengths, and
pressures shall be given in English units. Pipe shall be marked on the inside with the
diameter, wall thickness and grade.

12.2 Pipe markings shall include the order number, heat number, lot number, and whatever
other designations required so that complete traceability is maintained, and each length
of pipe can be specifically linked to all applicable chemical, physical, and other test
results related to each step of the manufacturing testing, and inspection operations.

12.3 End protectors or bevel protectors shall be furnished for all pipe.

13.0 SHIPPING

13.1 All pipe shall be handled, loaded and shipped in accordance with API RP 5L1,
Recommended Practice for Railroad Transportation of Line Pipe; API RP 5L5
Recommended Practice for Marine Transportation of Line Pipe.
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13.2 The Seller shall submit loading instructions and diagrams for approval for all pipe to be
shipped. The approval of these shall not relieve the Seller of his responsibility for any
damage during shipment.

13.3 All dimensional tolerances and pipe surface conditions specified herein and API
Specification shall apply to the pipe condition as received by the Buyer at the shipping
destination.

14.0 GUARANTEE

14.1 The Seller shall beat all costs to seek, find, and repair all leaks and/or ruptures which
occur during the field hydrostatic test, and which result from defects traceable to the
manufacture of the pipe. The field test pressure will but exceed a pressure which will
cause a circumferential fiber stress greater than 100% of the specified minimum yield
strength of the pipe as computed by that given in paragraph 5.3 of API 5: The Buyer
may elect to raise and lower the field test pressure one or more times, either as part of
the a planned testing routine, or as a consequence of a failure in the pipeline or in the
testing equipment; however, these fluctuations in pressure shall in no way relieve the
Seller of his obligations.

15.0 DUNNAGE

Pipe shall be shipped using dunnage, supplied by the pipe manufacturer, to protect the pipe
during shipping by land or marine. Chains or wire cables shall but be permitted to secure the
pipe for shipping. Approved padding shall be used to prevent damage from wheel thrown
objects. Marine transport shall be below deck.