Chapter 2 implementation 2Bimplementation. The operator who is contemplat- img coping this standard should be aware that simply selerencing the document in commercial transactions not achieve the desired result in a reasonable period oftime. indess, it will likely be the least effective and Slowest means of achieving this goal. The market for oleic specialty tools is arguably the most complex with which an operator who drills for oll and gas must deal. ‘The tools themselves come in an astonishing variety of S2=5, shapes and functions. They come from vendors ‘Se rank among the larger world corporations and from Sail local stores. They are a mixture of sale items and more commonly, rental items. In the latter group, tool maintenance becomes more important than tool design. ‘The complexity and fragmented nature of the specialty tool market. or more realistically markets, poses daunt- ig challenges to those companies who envision market s=guistion using a standard such as this one. 21 Specialty tool markets. Since implementation of Se Sancard must be market-driven, it is Very useful ®© examine specialty tool markets before outlining the implementation process. 22 Definitions. The following definitions apply to the Spies in this chapter. 221 Customer. The party that is at immediate =conomic risk in the event of a specialty tool failure. Except in turkey drilling situation, this will normally. Se an operating company that is drilling a well. 222 implementation coordinator. The person, usually assigned by a customer, who oversees Se implementation of this standard in its drilling operations 223 Maintenance. All those activities that are seguires > keen 2 Type A (rental) tool ft for continued Service. Maintenance activities include disassembly, iPspection of tool components, reassembly with new o* qualified used components, and function testing. 2.2.4 Manufacturer. The company that builds a specialty tool. 225 Non-OEM approved parts supplier. A source Gf replacement parts for specialty tools that is not proved by the tool manufacturer. * Fourth Edition, Volume 4, Drilling Specialty Tools 2.2.6 Vendor. The party that commercially rents, leases or sells a specialty tool to a customer, and that, the customer will look to in the event of a failure. A customer may secure a specialty tool from a vendor singly, in combination with other tools and equipment, ‘or packaged with some service. Specialty tool vendors may be any of the following company types. a. Tool manufacturer (vendor/manufacturer) b. Rental company ©. Service company 4d. Drilling contractor e. Equipment sales company f. Other company 2.3 Maintenance practices are critical. A Type A tool model may be field proven by years of satisfac- tory service, but the performance of any single tool will depend mostly upon its current condition as it operates in service. Most specialty tools are Type A. That is, they are used by the customer in a rental market. Thus, the effects of repeated disassembly and reassembly, wear, damage, fatigue and corrosion, if they are not adequately controlled and remedied, greatly increase a customer's risk of tool failure. Most of the requirements placed on Type A tools in this standard are directed toward tool maintenance. 2.4 Market complexity. Specialty tools are owned by a variety of company types and tendered to oil and gas operators in a number of ways. The commercial practice in effect will often complicate implementation of this standard. Indeed, in some cases it may not even be clear who is or should be responsible for compliance with this standard. 2.4.1 Market transactions. Market transactions ‘occur regularly in several different ways. a. The tool manufacturer sells the tool directly to, the customer. This is the standard transaction with Type B tools that are run once and left in the hole. No further maintenance is required or even possible in most cases. The sale of a liner hanger would typically involve such a transaction. b. The manufacturer rents or leases the tool directly to the customer, or provides it along with sale of another tool. The manufacturer periodically refurbishes the tool. A liner hanger running tool or an underreamer might be employed these ways. 13Bi HILL Accelerators Flowback Tools Adjustable Stabilizers Flow Diverters Air Hammers Frac Sleeves Annular Blowout Preventers Hole Openers BOP Test Tools IBOPs TH) THHill Associates, Inc. c. The manufacturer sells the tool to a drilling contractor or rental company who rents or leases the tool to the customer, either directly or packaged with other equipment. Maintenance is done by the tool owner, not the tool manufacturer. Maintenance practices may involve the use of parts or procedures that do not necessarily comply with the manufacturer's intent. The purchase of replacement paris from non-OEM approved parts suppliers is one example. Floor safety valves and Many other tools commonly found in rig and rental ‘company inventories will often fall into this category. d. The manufacturer sells the tool to a drilling contractor or rental company who rents or leases the tool to the customer. Minor maintenance is done by the tool owner and major refurbishing by the manufacturer. Here also, maintenance practices may not necessarily comply with the ‘manufacturer's intent. A blowout preventer might fit into this commercial pattern. e. The manufacturer keeps ownership of the tool and offers it to the customer as part of some service package. Providing an MWD tool in a directional services contract could fall into this category. Maintenance will probably be handled by the tool manufacturer. The manufacturer sells the tool to another company who provides it to the customer as part of some service package, such as packaging 2 jar in a fishing service contract. Maintenance. depending on its difficulty or complexity, may be done by the tool owner or the tool may be returned to its manufacturer for maintenance. The tool manufacturer sells the tool to a third party who sells the too! to the customer. In some but by no means all of the above transactions, the tool will be accompanied to the rig by a manufacturer's or vendor's authorized representative. This person may be charged with dressing, operating or supervising the operation of the tool. Fourth and fifth parties, such as inspection ‘companies and monitoring agents may also be ‘commercially involved in the inspection, assembly and testing of tools covered by this standard. Table 2.1 A Partial List of Specialty Tools to which this Standard may be Applied Pipe Spinners Production Packers PWD Tools Reversing Tools Roller Reamers Bridge Plugs Inclinometers Rotary Steerable Systems Bumper Subs Intensifiers Safety Joints Casing Baskets Jars Shook Subs Casing Brushes Jetting Tools Side Entry Subs Casing Float Equipment Junk Baskets Sleeve Stabilizers Casing Scrapers Kelly Drive Bushings Spears ‘Cementing Heads Kelly Valves ‘Squeeze/Storm Packers Cement Retainers Key Seat Wipers Swivels Cement Stage Collars Knuckle Joints Thrusters Circulating Tools Liner Hanger Running Tools Tongs Core Barrels Liner Hanger Setting Tools Top Drives Cutters External Liner Hangers Torque Reduction Devices Cutters Internal LWD Tools Triple Connection Bushings Drill Collar Safety Clamps Magnets Turbines Drill Pipe Float Subs Milling/Retrieving Tools Underreamers Drill Pipe Slips Mud Motors. Variable Bore Auto Slips DP Conveyed Logging Tools MWD Tools, Wellbore Clean Up Filters DV Tools Open Hole Packers Whipstocks Elevators Overshot Casing Patches Floor Safety Valves Overshots 14DS-1° Fourth Edition, Volume 4, Drilling Specialty Tools. Commercial transaction practices other than those described above will also exist. 242 Vendor variety and sophistication. When the implementation coordinator who is charged wih acopting this standard views the vendor base upon mich @ may be imposed, he or she will see => astonishing array of companies. Specialty tool senge in Size from very large corporations Sonal sales in the multi-billions of gh mid-sized regional concerns to Small lose! operations with no more than a single sutfict_ Some vendors may already have in place all te process controls needed to meet or exceed the s=quirements of this standard, with distinctions mainly int=minology. Others may be stretched to meet even 2 few of the requirements herein. 243 Geographic diversity. The degree to which single vendor will comply with the requirements of ‘is standard may not be consistent from one location 0 the next. Variations in facilities, equipment and personne! expertise shop-to-shop or rig-to-rig may result in different results for a given maintenance act 244 Widely variable tool types. In addition to she complicating effects of commerce, the tools ‘Shemselves are 5o varied that implementing a single stencard to cover them all seems dauntingly difficult. Partial list of tools to which this standard can be oped is shown in table 2.1 a. Become familiar with Standard DS-1. TH Hill Associates has been involved in writing and enforcing drilling equipment standards for many years. We have often seen operators ty to impose some standard on their vendors without themselves having a full and detailed understanding of the procedures they were asking their vendors to follow. We have also observed many cases in which vendors upon whom the standards were being imposed lacked full and detailed understanding of what it was they were undertaking to do. When these two conditions overlap, little or no real change in behavior occurs at the shop, in the yard or on the rig b. Become familiar with specialty too! markets in the region. Where is tool ownership vested? By whom and how and at what frequency are rental tools of interest refurbished? How are they function-tested before being shipped to the rig? What records accompany the tools when they are shipped? What types of specialty tools are carried in the inventories, of rigs in the operation? How, on what frequency and by whom are they refurbished? What testing procedures are followed after a toolis refurbished? ¢. Become familiar with any past problems the organization has had with specialty tools. Review summary reports and interview people in the ‘organization who have knowledge of the problems. Estimate the unrecovered costs associated with these problems. Get prepared to discuss these ‘occurrences and the recovery efforts that they set 25 implementation road map. The operator who wishes 10 implement this standard in an operating s=g5on should consider the following steps. in motion, should the need arise in the upcoming session with operating decision makers. 25.1 Assign an implementation coordinator. This, person should be familiar or become familiar with the yencors and the types of commercial transactions involving specialty tools in the operating region. ‘The implementation coordinator's objective is to Getemine, enumerate and prioritize and act on the enization's needs in regard to implementing this Standard. Every organization will have a different set of iskmanagement attitudes and policies. Each mil have a different recent experience with specialty Sool problems. Thus, the management of one crgenization will arrive at a different set of "needs" im 2 Gtterent priority rank than the management of =nothe:. The implementation coordinator is charged nding out and condensing organizational SStuces into a coherent and executable strategy. ‘The implementation coordinator might follow a path ‘Smilar to the one outlined below. d. Determine the needs and priorities of the organization. The best way of doing this is to meet. as a group with the interested decision makers in the organization. Act as organizer and facilitator of the meeting, which should take less than one half day. A suggested meeting agenda is given below. 1. State the meeting objective. To leave the room with a consensus list of tools the organization judges need regulation by this standard, and the degree of regulation required for each tool. 2. Summarize recent experience with specialty tools for the benefit of the operating decision makers. 3. Give a brief overview of the standard. Discuss its objective and the means it employs to meet the objective. Discuss how the standard will impact the way tools are load-rated, inspected, 15,