Committee on Refinery Equipment April 2010 Update to the Refining Committee

1. Committee on Refinery Equipment April 2010 Update to the Refining Committee Michael Lubcyik, Chevron Energy & Technology Company, Chair, CRE

2. Purpose/Outcomes • Report on 2010 activities • Discuss standard revisions with significant impacts – 653 & 520 • Obtain GCR feedback

3. 2010 Activities Key Standards Revision – Standard 653, Tank Inspection, Repair, Alteration, and Reconstruction: • A joint Inspection and Tanks subcommittee meeting occurred on January 28th • The effort developed proposed wording to clarify the inspection intervals in Section 6 of API Standard 653, Tank Inspection, Repair, Alteration, and Reconstruction

4. 2010 ActivitiesKey standards revision – Standard 653 • The ballot received consensus with 71% response rate (must be > 50%) and 85% approval rate (must be > 67%) • The ballot had eight negatives • Voters submitted 91 written comments • The comment resolution process begins today at 1 pm • A recirculation will be necessary

5. GCR FeedbackKey standards revision – Standard 653 • Concern about regulators and other’s view of changing standard soon after the 4th edition was published • GCR would like to review recirculation ballot before issue • Some concern about RBI method and inspection timelines

6. 2010 Activities Key Standards Revision – Recommended Practice 520, • Sizing, Selection, and Installation of Pressure-Relieving Devices in Refineries—Part II, Installation • Proposed revision is part of regular review and maintenance process • The standard is approaching its procedural review date – 5 years (August 2003) plus two year extension to complete work • The proposed revisions update the standard and include a revision to the safety relief valve section • The initial draft ballot closed March 17.

7. 2010 Activities Key Standards Revision – RP 520, Part II: • The proposed revisions are designed to allow operators greater flexibility on maximum inlet non-recoverable pressure drop for safety relief valves: • Current language states that pressure drop should not exceed 3% of the valve set pressure • Proposed language states that the “pressure loss…should not exceed 3 percent of the set pressure of the pressure relief valve except as permitted in 4.2.2.4 when supported by an engineering analysis”

8. 2010 ActivitiesKey standards revision – RP 520, Part II • The ballot received consensus with 66% response rate (must be > 50%) and 96% approval rate (must be > 67%), with one negative • OSHA has provided comments • Voters submitted 200 written comments • The comment resolution process begins today • A recirculation will be necessary, and a reaffirmation of the current edition may also be required

9. GCR FeedbackKey standards revision – RP 520, Part II • Need to address OSHA comments • Need to determine other documents that mention 3% pressure loss

10. 2010 Activities • The CRE subcommittees plan to ballot, publish and conduct 20 standards actions in 2010 • The Refining Committee asked for information regarding significant standards revisions • The CRE subcommittees have been asked to report this information

11. 2010 Activities • Subcommittees report on proposed revisions that could: • Incur a significant cost or savings to equipment cost or repair; Require a significant addition or allow for a reduction in engineering effort necessary to design or specify equipment procurement; or • Noticeably improve equipment reliability or safety.

12. 2010 Activities • Examples of current standards under development with potential significant impact: • Addendum to Recommended Practice 934-A, Materials and Fabrication of 2 1/4Cr-1Mo, 2 1/4Cr-1Mo-1/4V, 3Cr-1Mo, and 3Cr-1Mo-1/4V Steel Heavy Wall Pressure Vessels for High-temperature, High-pressure Hydrogen Service and • Revision to the 1st edition of Technical Report 934-B, Repair and Remediation Strategies for Equipment Operating in Wet H2S Service • Are being modified to address recent issues with reheat cracking problems during fabrication of heavy wall 2-1/4Cr-1Mo V-modified steel reactors.

13. 2010 Activities • Examples of current standards under development with potential significant impact: • The publication of the 1st edition of Recommended Practice 538 on boiler design and installation may increase initial capital costs as no industry-specific document currently exists, but should result in overall cost savings as it will increase equipment reliability. • The 5th edition of Recommended Practice 560, Fired Heaters for General Refinery Service has proposed revisions in the flue gas dewpoint section that would increase reliability. • The Refining Committee will be advised when additional standards are identified and are under ballot

14. GCR Feedback • GCR would like to continue to get this type of info on standards • Continue to have sub-committees report on this info to be reported to GCR

15. Materials Database Project • Actions on Materials Database project since the January 2010 Refining Meetings: • API has a qualified Project Manager for the Pilot Project under contract • API has prepared a contract, including a data access license agreement, for the Pilot Project • Contract is under review by Materials Property Council and Contractor • Goal is to complete work on Pilot Project and be prepared to make final recommendation to GCR at Spring 2011 meeting

16. GCR Feedback • Continue to proceed with Materials Database Project • Ensure data access by industry