Draft MINUTES, Revision 1 API SC 17 Subsea Production Equipment 2012 Winter Meeting Houston, Texas January 19, 2012

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1 Draft MINUTES, Revision 1 API SC 17 Subsea Production Equipment 2012 Winter Meeting Houston, Texas January 19, 2012 John Bednar, Chair Gary Hurta, (Co) Vice Chair Brian Skeels, (Co) Vice Chair Ross Frazer (Co) Vice Chair John McManus, Secretary 1. John Bednar, API SC17 Chairman, welcomed the group to the meeting at 8:00 AM with opening remarks, outlining various safety/housekeeping issues. 2. A roll call was completed and confirmed there was a quorum of 19 present (17 voting members and 2 Proxy) for this meeting. NOTE: It is the voting member s responsibility to attend the committee meetings or to notify, via , the SC17 Leadership and API SC17 Coordinator of your proxy! (Attendee List provided in Attachment A) 3. The 2011 Summer Standardization Conference Meeting agenda was adopted. 4. The draft minutes from the SC17 Summer Standards Conference Meeting in San Francisco, California on June 29, 2011 were reviewed and a motion was made, seconded, and passed to approve the minutes. 5. The updated SC17 Voting Representation Listing (Attachment B), ISO/API Work group Leads Contact List (Attachment C) and Standards Status Matrix (Attachment D) were reviewed. 6. Task Group Chair/Project Group Leader reports. a. RP 2RD Dynamic Risers for Floating Production Installations i. The formal report (Attachment E) was submitted by Paul Stanton. ii. A draft of the document was sent to API for editing on September 12, API now has the document properly formatted in the ISO template but the three figures in the document were not in the required ISO format. API is not sure if ISO will accept the DIS with the current figures but will try. 1. The OGP volunteered to help with formatting. iii. Philippe Jeanjean has proposed that the riser and flowline geotechnical annex that was deleted from the final draft be included in API RP 2GEO. iv. Target Dates for Deliverables 1. Issue DIS March FDIS October Draft SC 17 Winter Meeting Minutes, Rev 1 Page 1 Houston, Texas January 19, 2012

2 b. API 17A Subsea Production Systems i. The formal report (Attachment F) was given by Roger Walls. ii. A total of 5 Work group meetings were held in 2011, with participation from API 17A work group. Additional sub-group meetings were also held with specific focus on pressure testing of subsea equipment. Further work group meetings are planned for 2012 ahead of the DIS issue. iii. The joint API SC17 and ISO TC67/SC4/WG6 Materials task group has developed two documents. The new Clause 6 in ISO , Materials and corrosion protection was published And the second document on fabrication, "Materials and welding of manifold piping", will be included in the new ISO iv. A sub-group has prepared a draft document providing guidance on pressure testing of subsea equipment. A final decision is to be made whether to include this document within 17A or if it is substantial enough to warrant being an RP on its own. v. Target Dates for Deliverables 1. Launch of DIS Enquiry Q Start of FDIS final vote Q Publication of International Standard Q c. API 17B, API 17J & API 17K Flexible Pipe and API 17L1 & API 17L2 Ancillary Equipment for Flexible Pipe i. Formal report (Attachment G) was submitted by Krassimir Doynov. ii. Status of JIP initiative for the update of API 17TR2 The Ageing of PA-11 in Flexible Pipes 1. The Scope of Work is to update PA11 s, and include PA12 s ageing model and guidelines, and to perform round robin tests. 2. The JIP kick-off date has been delayed. The JIP coordinator Morten Eriksen moved from GL Noble Denton to a different company 4Subsea. 4Subsea has agreed to manage the JIP and assigned Morten as the coordinator. 3. Min number of participants required to kick off the JIP is now 5. 4Subsea is working to sign up 8 participants. The target JIP kick-off date is May 1st, K. Doynov will submit SRRR form for revision to 17TR1, after the JIP has been kicked-off. iii. Status of API 17L1 and API 17L2 1. All DIS technical comments were addressed in July, 2011 and both DIS documents sent to the ISO/TC67/SC4 Secretary. 2. Both documents entered the FDIS stage on Dec-22, The delay was due to addressing ISO editorial concerns some reasonable (e.g. clear distinction between normative and informative references) and some that are extremely difficult to implement (e.g. use of definitions already published in other standards, and organizing terminology hierarchically instead of alphabetically). Draft SC 17 Winter Meeting Minutes, Rev 1 Page 2 Houston, Texas January 19, 2012

3 3. FDIS stage addresses only editorial issues, and lasts typically 3 months - seeking editorial support for figure formatting. 4. ISO standard publishing is expected (and back-adoption to API is possible) in 3Q2012, if FDIS stage is completed in 2Q2012 iv. Status of Flexible Pipe Technology JIP for API 17J and API 17B Revision 1. The close out JIP meeting was held in September Participation: 19 manufacturers, operators, service companies, country regulators and standardization bodies a very broad Industry representation worldwide. 2. The final 17J/-2 document was prepared on June-18, Submission to API/ISO as NWI postponed until the completion of 17B/ On manufacturer s work group request two additional JIP meetings were held in 4Q2011 on qualification & prototype testing. The proposed qualification & prototype testing revisions are to be addressed in January The 17B/-11 document is to be finalized for API/ISO submission in February The JIP manager assurance that 17B/-11 will be available in February 2012, allows immediate submission of NWIs for both 17J/-2 and 17B/-11. The procedural question is whether to run these documents through API, or through ISO entering DIS stage as these are mature standards. 5. The FPTG clearly wants identical API and ISO versions of the same standards v. Resources needed 1. Editorial assistance for ISO FDIS /17L1 and -17/17L2. vi. Requested new work items 1. Proposal for NWI DIS for the next revision of ISO / API 17J and ISO / API 17B can be submitted immediately. vii. Updated Target Dates for Deliverables 1. API 17L1 & API 17L2 a. FDIS stage kick-off December 2011 b. FDIS stage completion 2Q 2012, if editorial assistance becomes available in 1Q12 c. Publishing of ISO (API back-adoption) standards 3Q 2012, if FDIS completed in 2Q12 2. API 17TR2 The Aging of PA-11 in Flexible Pipes a. Submission of SRRR form post JIP kick-off 2H 2012 d. API 17C TFL Systems i. Harold Reeves was not present. Formal report (Attachment H) was submitted by John Bednar. ii. The document is currently in maintenance mode and there are no activities taking place at this time. iii. The standard was reaffirmed in 2010 by SC17 ballot. Draft SC 17 Winter Meeting Minutes, Rev 1 Page 3 Houston, Texas January 19, 2012

4 iv. BP has sold its Pompano asset, which is the only TFL operation in the GOM to Stone Energy. The sale will be finalized this year. As yet it is not known who from Stone Energy will be working with the TFL system. 1. Stone Energy Contacts were given as: a. Stuart Morrison - Stone Energy, Houston, TX b. Craig Castille Stone Energy, Lafayette, LA e. API 17D Subsea Wellheads and Trees i. Formal report (Attachment I) was submitted by Ross Frazer. ii. The document has also passed an API adopt-back ballot and was published as the second edition of Specification 17D on 02 May The specification was effective as an API document on 01 November iii. Work since the release of the second edition has been focused on addressing inquiries resulting from users application of the new specification and issuing one errata update. iv. Differential Pressure Consideration 1. After resurrecting the small task group which worked this issue and addressing all the comments to the first ballot effort, the second edition of this topic was forwarded to API staff on 11 Nov The task group s efforts are being incorporated into the document. At the time of this report, it is expected that the final draft will be returned to the task group by 31 Jan The document has been re-titled Subsea Equipment Pressure Ratings. v. Target Dates and Deliverables vi. Ancillary Activities 1. The TG is also following the ECS task group on the changes to the ASME Section VIII, Division 2 pressure vessel code and what effects it may have on the current document. vii. Target Dates and Deliverables 1. Ballot-ready second edition of the differential pressure in design report is to be returned to the task group for its final review on or before 31 Jan f. API 17E Production Umbilicals i. Formal report (Attachment J) was submitted by John McManus. ii. The TG is meeting to deal with the next revision 1. Reviewed API clarification matrix from the DIS/FDIS where we confirmed it would be looked at in the next Revision has been made. Final resolution of agreed upon comments are in process. 2. The Umbilical Manufacturers Federation (UMF) has submitted comments for TG review and action. The steel tube suppliers, the fiber optic cable suppliers and the electric cable suppliers have commented to the existing specification and any Draft SC 17 Winter Meeting Minutes, Rev 1 Page 4 Houston, Texas January 19, 2012

5 clarifications are being reviewed. Note, most have confirmed no or very little clarification. iii. The TG intends to meet monthly. iv. Target Completion Date is May 2013 g. API 17F Production Controls i. The formal report was given by Christopher Curran (Attachment K). ii. As of December 2011, the Standard is at DIS. 1. Planned publication date is February 2015 iii. Anticipated New Work Items: 1. All electric control 2. Subsea processing 3. Open architecture 4. Safety integrity level 5. Backward compatibility of existing fields 6. Control fluid and cleanliness issues bar (5,000 psi) low pressure systems 8. Pressure definitions 9. Qualification testing parameters 10. SIIS recommendations 11. Software development. h. API 17G Completion/Workover Risers i. A formal report was provided by Brian Skeels (Attachment L). ii. The ISO and API 17G task groups continue to work to edit the working drafts. API/ISO work groups held several meetings in August, September, October and November to assemble and edit working draft #1. Annexes C, D, and I were completed December and discussed in ISO group meetings in December and January. Joint API/ISO task group meetings were held January 16 and 17 to reconcile and edit comments to working draft #2. All agreed at the January meeting that a third working draft is needed before submitting anything to ISO. iii. Working draft #3 should be completed by mid March followed by a task group vote to submit to ISO for DIS industry comment circulation by May 1. iv. The working draft has now seen two revisions as the various texts are now in one document and task group members are reviewing and sending in comments for discussion and suggested edits. v. WD #3 is planned to be finished by mid-march, and then forwarded on to ISO for worldwide circulation/comment as a CD or DIS by the first of May. vi. Several companies and contractors have asked for copies of the draft of Annex J so as to better understand how the two testable barrier philosophy discussed in recent BSEE NTLs applies to subsea workovers and riser equipment. vii. Straw man documents for API 17G1 (Pumping and Hydrate Remediation Subsea Systems) are being drafted in preparation for the initial kick off working session by this sub-team scheduled for February 8, i. API 17H ROV Interfaces & ROT Intervention Systems Draft SC 17 Winter Meeting Minutes, Rev 1 Page 5 Houston, Texas January 19, 2012

6 i. No formal report was submitted. ii. Charles White s position as TG chair is in limbo. iii. Final comments to FDIS ballot still need to be resolved. j. API 17N Subsea Reliability and Technical Risk Management i. The formal report (Attachment M) was presented by Don Wells. ii. Aim is to incorporate Integrity Management into current API 17N iii. TG has been organized into subcommittees 1. Design and Decommission a. New key process for through life to be developed 2. Manufacture, Assembly, SIT, Installation, Commissioning a. Matrix has been developed b. Looking for gaps c. Management of Change being worked on 3. Operations a. Reviewed and raised issues with the existing 12-KPs b. Proposed 3 additional KPs a. Field modifications b. Inspection and Monitoring c. Remedial Intervention c. Added 3 processes to Project Phase Gide to Process 4. Technology Qualification a. New risks identified a. Obsolescence b. Mew Technologies c. New Materials b. Utilize DNV RP A-203 as much as possible 5. Regulations a. On hold until more definition/decisions from other committees k. API 17O HIPPS i. Report (Attachment N) presented by Christopher Curran. ii. The RP was published October The API 17O task group s scope of work of maintaining the RP for High Integrity Pressure Protections Systems (HIPPS) for subsea production systems has been extended to cover applications for export pipelines in a new sub-committee iii. Major issues 1. Equation 2 of section 9 of the RP has been found to be dimensionally inconsistent. API has contracted the services of a SIS specialist from ABB to review the issue and propose amendments for review by the working group. 2. Section 9 has been redrafted and reviewed by the working group. All comments received by the November deadline have been reviewed. The revised Section 9 will be submitted to ISO as part of the DIS commenting round. iv. There is an ongoing monthly meeting to develop and work on the export pipeline annex. This work is being lead by Brian Perilloux (Williams). Draft SC 17 Winter Meeting Minutes, Rev 1 Page 6 Houston, Texas January 19, 2012

7 1. A mission statement has been developed and objectives have been identified. Boundaries for drafting an API standard/rp/specification that will address the necessary system components to enable a subsea pressure class specification break. 2. TG is awaiting an official designation (title) from API, but continue to progress the content of the draft through monthly meetings hosted by Williams Midstream in Houston. 3. The DOI (BSEE) and PHMSA (DOT) have committed to continue their attendance and input during the development of the document. The goal is to complete a draft during the next year suitable for API review by YE Brian Perilloux (Williams) will continue to lead the effort with assistance from Mark Cizek (Williams). However, we have currently postponed the monthly meetings until such time that more representatives from industry and the regulatory agencies can resume attendance. We expect to resume the monthly meeting in the 4th quarter l. API 17P RP for Templates and Manifolds i. No report was presented. ii. There are 2-negative votes against the API Adopt Back. iii. There are 3-options 1. Issue modified adoption by API, i.e. have a Regional annex 2. Have the 2-negative voters resend their negative vote 3. TG Chair to set aside the negative votes and adopt back iv. Motion was made, seconded, and passed that API have an Adopt Back revote m. API RP 17Q Recommended Practice for Subsea Qualification i. Report (Attachment O) was presented. ii. Document First Edition issued June 18th iii. Task Group polled in January 2012 for potential revisions / updates to the document. 1. Any significant comments received may result in initiation of a revision / update to the document. iv. Plans to poll the TG again in 6-months to ascertain any recommend potential revisions/updates to the document. n. API 17R Recommended Practice for Flowline Connectors and Jumpers i. The formal report (Attachment P) was presented by Steve Mansfield. ii. TG has been formed with 4-Operators, 3-Manuacturers, and 2- Engineering/Consulting firms. iii. Workshop held in November i. Approximately 60% of document is in a draft format. iv. Next workshop will be February 2012 to review the current draft and new sections. Draft SC 17 Winter Meeting Minutes, Rev 1 Page 7 Houston, Texas January 19, 2012

8 v. Plan is to have the draft completed by November 2012 and final draft formatted and reviewed by February o. API RP 17S Recommended Practice for Subsea Multi-phase Flow Meters i. The no formal report was presented. ii. It was recommended that a co-chair to Ray Fleming be found. i. John Allen was nominated to be interim co-chair iii. Funds have been allocated to Letton-Hall to accelerate the RP development 1. Phase 1 estimate is $25, Phase 2 estimate is $32,500 p. API RP 17U -- Recommended Practice for Wet and Dry Thermal Insulation of Subsea Flowlines and Equipment i. Update of activities was provided as a presentation (Attachment Q) and associated report (Attachment Q2). ii. This Recommended Practice (RP) provides guidance for the performance, qualification, application, quality control, handling, and storage of wet and dry thermal insulation for subsea applications in the petroleum and gas industries. iii. The RP is applicable to: 1. Flowlines and Risers 2. Pipeline End Termination (PLET) piping jumpers, connectors and fittings. 3. Valves and Chokes iv. The current work has expanded and incorporated input from fabricators of wet and dry insulation as well as installation contractors in order to define the general requirements to be incorporated in the recommended practice. v. A Draft of the recommended practice has been distributed to the subcommittee for comment and should be available by 1 st of March for submittal to SC17. q. API RP 17V Recommended Practice on Subsea Safety Systems i. The formal report (Attachment R) was presented by Christopher Curran. ii. The scope of work is based on discussions held between BSEE and API Subcommittee 17. iii. The group has met on three separate occasions (August, September and October 2012) to discuss the scope of the document, draft a table of contents and prepare an initial schedule. iv. The group has a working table of contents and needs to identify a small working group with a larger reading group to review the output. r. API 17W Recommended Practice for Subsea Capping Stacks i. Formal report (Attachment S and Attachment S2) was presented by Daniel Sadenwater Draft SC 17 Winter Meeting Minutes, Rev 1 Page 8 Houston, Texas January 19, 2012

9 ii. There is an immediate industry need for guidance and an API recommended practice on the design, manufacture, testing and use of subsea well capping stacks. iii. Currently, capping stacks are under construction without full knowledge of interfaces, functionality and operational requirements as many components are manufactured independently, without a systems approach. iv. Implications to providing inadequate guidance and taking the current nonsystems approach could include risks to personnel safety, environment, and assets upon the unfortunate use of the systems. v. The TG has completed framing the project scope with content divided into four sub-sections. All Sub-section outlines are complete. s. Technical Reports i. 17TR4 Equipment Pressure Ratings 1. TR is being formatted and will published when complete ii. iii. iv. 17TR5 (Attachment T) - Avoidance of Blockages in Production Control Umbilicals 1. Comments were received and reconciled with help from the Basics JIP. The documents have been reviewed and approved by the API legal department. 2. The documents are now with an outside contractor for formatting to the API style guide requirements. 3. Ed Baniak will perform page proofs and the documents are expected to be ready early February. 17TR6 (Attachment T) - Attributes of Production Chemicals in Subsea Production Systems 1. Comments were received and reconciled with help from the Basics JIP. The documents have been reviewed and approved by the API legal department. 2. The documents are now with an outside contractor for formatting to the API style guide requirements. 3. Ed Baniak will perform page proofs and the documents are expected to be ready early February. 17TR7 (Attachment U) - Connector Qualification Guidelines 1. The major concern is that this is a procedure for quasi-static and limit state theory applications. It was subsequently learned that API 17G, Annex I has a qualification procedure as well, but for dynamic and fatigue loaded applications; very different parameters and performance requirements. 2. Thus, late in 2011, it was decided that a new strawman needs to be prepared with a preface that defines quasi-static vs dynamic applications. One means to define a delineation point is the ASME S-N curve for manufactured components. Draft SC 17 Winter Meeting Minutes, Rev 1 Page 9 Houston, Texas January 19, 2012

10 3. The new straw man should be ready by February 10 th, and will be re-distributed to task group members followed by a meeting in March. v. 17TR8 (Attachment V) - PER 15K (HPHT) 1. The API 17TR8 task group has held three meetings, two in conjunction with the wrap up meetings of PER 15K in July and September Another 17TR8 meeting was held in November 2011, where completion and wellhead HPHT design procedures for 20k equipment was presented and discussed. 2. It was clearly agreed that 17TR8 has to pick up the mantle since PER 15K will be closing and issuing its technical report, leaving it up to the wellhead valve design industry to determine which paths to pursue. SC 17 participants would like to see a draft technical report ready by end of May There was also concern that the technical report might be contradicting ASME BPVC tenants. a. It was mentioned that the ASME committee accepts and reviews any submissions as a potential case study and if approved by the committee, is adopted into the code to address special applications. 4. ASME will be meeting in April and July; so the task group has some additional target dates for presenting and submitting proposed design guidelines for HPHT to both API and ASME committees for review. 7. Other Business a. PER 15K Update i. A protocol report will be issued by the PER 15K team ii. API to ask SC 6 and SC16 to join SC17 in ensuring proper way forward. (SC6 has agreed. SC16 says no.) iii. A draft document is hoped to be available by the end of May iv. ASME is meeting in April and in July to present several case studies b. Standard definitions on Pressure i. Still an open item. Gary Hurta, Mike Williams, and Earl Shanks to ascertain progress and way forward. 8. Actions Items were reviewed and updated during the course of the meeting. 9. Next Meeting a. API Summer Standardization Conference, June 11 thru June 15, 2012 at the Westin Westminster in Westminster, Colorado. i. SC17 Roundtable Discussion Tuesday, June 12 ii. SC17 Committee Meeting Wednesday, June The meeting adjourned at 2:45 PM Draft SC 17 Winter Meeting Minutes, Rev 1 Page 10 Houston, Texas January 19, 2012

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