Competency Assessment for Upstream Oil and Gas Pipeline Installation Inspectors[1]

7/30/2019 Competency Assessment for Upstream Oil and Gas Pipeline Installation Inspectors[1]

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GUIDE

Competency Assessment for

Upstream Oil and Gas PipelineInstallation Inspectors

September 2009

2009-0005


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2100, 350 7Avenue S.W.Calgary, AlbertaCanada T2P 3N9Tel (403) 267-1100Fax (403) 261-4622

403, 235 Water StreetSt. Johns, Newfoundland and LabradorCanada A1C 1B6Tel (709) 724-4200Fax (709) 724-4225

www.capp.ca [email protected]

The Canadian Association of Petroleum Producers (CAPP) representscompanies, large and small, that explore for, develop and produce natural gasand crude oil throughout Canada. CAPPs member companies produce about 90per cent of Canadas natural gas and crude oil. CAPP's associate membersprovide a wide range of services that support the upstream crude oil and natural

gas industry. Together CAPP's members and associate members are animportant part of a $110-billion-a-year national industry that provides essentialenergy products. CAPPs mission is to enhance the economic sustainability ofthe Canadian upstream petroleum industry in a safe and environmentally andsocially responsible manner, through constructive engagement andcommunication with governments, the public and stakeholders in thecommunities in which we operate.

Disclaimer

This publication was prepared for the Canadian Association of PetroleumProducers (CAPP). While it is believed that the information contained herein isreliable under the conditions and subject to the limitations set out, CAPP doesnot guarantee its accuracy. The use of this report or any information containedwill be at the users sole risk, regardless of any fault or negligence of CAPP orits co-funders.

Review by April 2014


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September 2009 Competency Assessment for Upstream i

Oil and Gas Pipeline Installation Inspectors

Contents

1 Project Scope................................................................................................................2

1.1 Definitions........................................................................................................2

2 Pipeline Installation Inspector Roles and Responsibilities........................................3

3 Qualification .................................................................................................................4

4 Areas of Knowledge, Skill and Competency .............................................................4

4.1 General Pipeline Construction Overview.......................................................44.2 Quality Concepts for Pipeline Construction ..................................................54.3 Overview of Relationships Between Codes and Jurisdictional

Requirements ...................................................................................................64.4 CSA Z662.........................................................................................................8

4.5 Owner Specifications, Drawing Interpretation & Management of Change(MOC) ..............................................................................................................9

4.6 Pipeline Safety ...............................................................................................104.7 Welding/Joining and Non-Destructive Testing (NDT)...............................114.8 Materials: CSA Z245, API, ANSI ................................................................114.9 Environmental Considerations and Regulations..........................................124.10 Surface Rights and Reclamation...................................................................134.11 Crossings: Road, Highway, Railway, Water, Pipeline, Foreign Line,

Heavy Equipment ..........................................................................................144.12 Accountability and Liability .........................................................................154.13 Soft Skills .......................................................................................................16

4.14 CSA B51 (ASME B31.3)..............................................................................184.15 Facilities Additional Requirements ..............................................................19


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September 2009 Competency Assessment for Upstream 2


1 Project Scope

This Guide to Competency Assessment for Upstream Oil and Gas PipelineInstallation Inspectors (Guide) is intended as a management tool for owners andconstructors of pipelines, to ensure installation inspectors employed have the

technical knowledge and competence to ensure new installations fully satisfy theirrequirements and expectations.

This document provides guidance for the assessment and verification of pipelineinstallation inspectors knowledge and competence within the scope ofapplication of the CSA Z662 Code for Oil and Gas Pipeline Systems. (CSA Z662)

The focus of this document is pipeline installations in upstream, and midstreamoil and gas production 12 diameter. Future revisions may include pipelines>12 diameter, offshore pipelines, oilfield steam distribution pipelines and gasdistribution pipelines, however they are not at included in the scope of this Guide.

Installation of pipeline surface facilities has been included to ensure the inspectoris generally aware of the differences in requirements. This will allow the inspectorto decide whether additional inspection resources are required to ensurecompliance in these associated facilities. Please refer to CSA Z662 for furtherinformation.

1.1 Definitions

Competence

The ability to do something well, measured against a standard, relative to a

specific job using his/her skills, knowledge, abilities, and qualifications.

Competent

A person who has the skills, knowledge, and training to consistently performspecific work activities according to predefined standards; the ability to applyskills, knowledge, and training in a specific working environment.

Examination

Quality control functions performed by the manufacturer, fabricator, or installer.As referenced in this document examiner is the person(s) who performs qualitycontrol examinations.

Owner

Owner includes a lessee, a person in charge, person who has care and control anda person who holds out that the person has the powers and authority of ownershipor who for the time being exercises the powers and authority of ownership.(Alberta Safety Codes Act)


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Pipeline (see CSA Z662)

Those items through which oil or gas industry fluids are conveyed, including pipecomponents, and any appurtenances attached thereto, up to and including theisolating valves used at stations and other facilities.

Upstream Pipeline Installation Inspector

Inspector is the person(s) who oversees all aspects of pipeline construction andpipeline facilities construction on behalf of the owner. The inspector should betrained and competent in the acts, codes, regulations, specifications and standardsapplicable to the engineered design.

2 Pipeline Installation Inspector Roles and Responsibilities

The primary role of the pipeline installation inspector is to act within theirassigned scope, as the owners representative to verify or ensure that the

requirements as specified in the engineering design have been fully satisfied.

Their responsibilities include:

i) Ensure that engineering and design is complete and available for reviewprior to construction.

ii) Ensure safe work practices are followed as outlined by OccupationalHealth and Safety.

iii) Create or verify documentation adequate for compliance with regulatoryand engineering design requirements.

iv) Ensure corporate cost control measures are adhered to.v) Adhere to ground disturbance requirements.

vi) Ensure Corporate Material Receiving, identification, traceability andstorage practices are adhered to.

vii) Inspect field fabrication to ensure compliance to design specifications,codes and standards (e.g. B31.3, CSA Z662).

viii) Liaise between design engineer and project engineer to ensure inspectionwork is completed as planned.

ix) Ensure that individuals involved with special processes such as welding,heat treatment and non-destructive testing (NDT) are qualified andcertified in accordance with the requirements.

x) Document certification and qualifications of personnel to verifydemonstrated competency for all critical work.

xi) Review and evaluate contractors quality program to ensure compliancewith owner requirements.

xii) Generate or ensure generation of nonconformance reports and assist indevelopment of action plans to resolve.

xiii) Monitor general awareness and compliance to Section 217.1 of theCriminal Code (Bill C-45).


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3 Qualification

The owner should be able to demonstrate the qualification and competence ofpipeline installation inspectors has been adequately verified and documented.

There is currently no requirement for certification of pipeline installationinspectors.

The onus is on the owner to evaluate and ensure the inspector is competent andhas the knowledge to ensure all regulatory and integrity requirements have beensatisfied.

Pipeline installation inspectors may not require competence in all areas ofpipeline installation. Inspectors may choose to specialize in one area of pipelineinstallation. Documentation should be maintained by the owner demonstratingverification of competency of the inspector for all areas where the inspector isemployed.

4 Areas of Knowledge, Skill and Competency

4.1 General Pipeline Construction Overview

The pipeline installation inspector should have skills and knowledge in all aspectsof pipeline construction and regulations utilized in pipeline and pipeline facilitiesconstruction. This should include:

Licensing and notifications

Ground Work: Ground Disturbance, Environmental Impacts,Timber Salvage, Grading, Topsoil Stripping, Ditching, RockTrenching

Pipe handling and Stringing, Pipe Bending, Pipe Coating, PipeLaying

Back Filling, Rock Shielding, Ditch Padding

Pipe Supports/Anchors

Crossings, Pipe Weight Installation, Horizontal Directional

Drilling (HDD) requirements

Tie-ins, Hot Taps and Cold Taps

Block Valve Installation

Pressure Testing and Test Mitigation Plan


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Joining/Welding, Welding Repairs Composite materials

Management of Change (MOC) Orders, Quality Control/QualityControl Records, Non-Destructive Testing (NDT) Interpretation

De-watering, Pigging

Commissioning, turn over documentation, cleanup and fencerepairs, erosion control, Cathodic Protection, pipeline markers,

reclamation

Drawing interpretation

General content and scope of the Z-662 Code

General understanding of jurisdictional and regulatory involvement

Materials and basic design requirements and materials selection

Materials identification

Fabrication, Assembly and Installation

4.2 Quality Concepts for Pipeline Construction

The pipeline installation inspector should understand, in general, the concepts ofQuality Control and Quality Assurance (QA/QC). Outlined below are the basicelements of QA/QC:

Definition ofQuality: How to meet project requirements relating to federal,provincial and owner codes standards and specifications.

i) Elements of Quality including but not limited to:

Quality system (Quality Plan and Program)

Contract Review

Design Change Control

Document and Data Control

Purchasing

Item Identification and Traceability

Process Control (Welding, Coating)


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Inspection and Testing

Inspection, Measuring and Test Equipment(IM & TE)

Control of Nonconforming Product

Corrective and Preventive Action

Handling, Storage and Preservation of Material and Equipment

ii) Responsibilities for monitoring and verification Quality Records

iii) Review of Contractor Quality Program

4.3 Overview of Relationships Between Codes and JurisdictionalRequirements

The inspector should be familiar with the regulatory and jurisdictionalrequirements utilized in pipeline and pipeline facilities systems construction. Thiswill require an understanding of various regulatory instruments issued by theapplicable regulatory authority such as: legislation, regulations, guidelines, Codesof Practice, Instructions, Information Letters, Information Bulletins, andDirectives.

Understanding the regulatory requirements is essential as they may supersede orsupplement the applicable industry code of construction requirements (e.g. CSAZ662). The inspector should be competent and have knowledge to fulfill the

following responsibilities:

Determine the applicable regulatory authority

Identify pertinent regulatory documents applicable to their scope ofresponsibility

Identify and ensure pertinent regulatory approvals are in place

Understand notification or hold point requirements

Understand documentation, record keeping, reporting and retentionrequirements

Determine documentation required to be submitted for regulatoryauthorization/approval

Identify where regulatory requirements may supersede orsupplement industry code of construction requirements


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Understand incident and failure reporting requirements

Understand any local/municipal requirements

The inspector should be familiar with regulatory requirements based on the

location of the pipeline being installed. This may include:

Canada and Offshore: National Energy Board (NEB)

Alberta: Energy Resources Conservation Board (ERCB)

British Columbia: Oil and Gas Commission (BC OGC)

Saskatchewan: Minister of Energy and Resources (MER)

Ontario: Technical Standards and Safety Authority (TSSA)

Local Municipal Bylaws

The types of activities that may trigger regulatory requirements that the pipelineinstallation inspector should be aware of includes:

Permits to construct, license to operate

Landowner notification and access, survey requirements

Call before dig/line location training, certification, notification,

procedures

Water and road crossing restrictions

Environmental restrictions and approvals

Requirements for pressure testing (approvals, acceptable testfluids, disposal of test fluids, test pressures, records, charts,

documentation)

Non-destructive testing (NDT) additional requirements for visual

examinations, test methods, test frequencies, acceptancerequirements

In-line inspection (ILI) tools notification, approvals

Crossing of other pipelines, utilities (3rd party crossings) notification, inspection, documentation


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Depth of cover requirements

Pipeline marking and signage requirements

4.4 CSA Z662

The inspector should have a general understanding of the entire CSA Z662standard and the ability to navigate and locate any and all required informationencompassed within the standard.

Following are sections of direct importance to upstream oil and gas:

A general understanding of:

1. Reference Publications (Clause 2)

2. Gas Distribution Systems (Clause 12)

3. Aluminum Piping (Clause 15)

A detailed understanding of:

1. Design (Clause 4)

2. Materials (Clause 5)

3. Corrosion Control (Clause 9)

4. Operating, Maintenance and Upgrading (Clause 10)

5. Applicable sections of Annexes

A comprehensive understanding of:

1. Scope (Clause 1)

2. Definitions (Clause 3)

3. Installation (Clause 6)

4. Joining (Clause 7)

5. Pressure Testing (Clause 8)

6. Plastic Pipelines (Clause 13)

7. Oilfield Steam Distribution Lines (Clause 14)

*IMPORTANT: The above categorizations are not for the full scopeof industries covered by the CSA Z-662 specification, but are forupstream oil & gas only. For applications outside of the upstreamindustry the categories may be very different.


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4.5 Owner Specifications, Drawing Interpretation & Management ofChange (MOC)

Inspectors should understand the application of owner specifications, including:

Purpose and need for owner specifications How to access specifications for project or work

Specification revisions and updates

Relationship between specifications, codes and jurisdictionalauthority

Interpret and locate specifications on drawings, e.g.: vendordrawings, plot plans, tie-in and line lists, piping plans, flow

diagrams

Relationship between specifications, standards and best practices

Specifications, management of change, change orders, revisioncontrol

1) Inspector should have a working knowledge of pipeline and pipeline facilitiesconstruction drawings. This will include the following drawing types:

1. Topographical

2. Facility plot plan and elevation drawings3. Typical excavation detail drawings including basic pipeline anchor and

support details, various creek and road crossing details and cathodic

protection

4. Civil engineering drawings

5. Pipeline construction alignment drawings (construction plan/survey

drawing)

6. Legal land site descriptions

7. Piping isometric and orthographic

8. Pipeline system maps

9. Process flow and Process & Instrumentation Diagrams (P & ID)

10. Detail construction and welded steel construction.

11. Welding and NDT symbols


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12. Basic electrical and instrumentation drawings

The inspector should also have a general understanding of related activities suchas surveying and line location.

4.6 Pipeline Safety

The inspector should have a thorough knowledge of appropriate safety practices

and requirements applicable to the construction of pipelines, including:

Work preparation

Personal Protective Equipment (PPE)

Workplace Hazardous Material Information System (WHMIS)

Hazard recognition and control

Front end operational hazards and controls

Rigging and hoisting hazards and controls

Pipe hazards and controls

Pipe assembly and coating hazards and controls

Specialized work hazards and controls

Environmental hazards and controls

Back end operational hazards and controls

Vehicle operation

Equipment operation and inspections

Emergency response

Medical service requirements

Hazards related to Cathodic Protection


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4.7 Welding/Joining and Non-Destructive Testing (NDT)

The pipeline installation inspector should understand, in general, the variouswelding processes utilized in pipeline and facilities construction. The pipelineinstallation inspector should understand the various factors that affect weld

quality and the inspection and test methods used to ensure and verify acceptableweld quality. In general this will include:

Detailed knowledge of CSA Z662 Joining Clause (Clause 7)

Overview of welding processes (including special processes used inpipeline construction.

Basic welding metallurgy (new material/in-service materials/tie-points.

Welding consumables including filler metals, fluxes, shielding gases

Welding procedure specifications and qualification testing

Closure weld procedures

Welder Qualification Testing

Practical considerations for welding in the field

Weld faults and acceptance criteria

Repair welding

In-service maintenance welding, repair and Hot Taps

Joining non-metals (mechanical/bonding)

Basic NDT for welds - Visual Test (VT) , Radiographic Test (RT) ,Ultrasonic Test (UT), Magnetic Particle Test (MT)

4.8 Materials: CSA Z245, API, ANSI

The pipeline installation inspector should understand, in general, the variouscodes and standards utilized in material selection for pipeline and facilitiesconstruction.

Definitions of pipe manufacture (e.g. electric and submerged arc welded,seamless)

Definitions of fitting/valve manufacture methods (e.g. forging, casting)


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Definitions of different organizations, including:

i) Canadian Standards Association (CSA)

ii) American Petroleum Institute (API)

iii) ASTM International

iv) American Society of Mechanical Engineers (ASME)

v) Manufacturers Standardization Society (MSS)

vi) American National Standards Institute (ANSI)

Definitions of testing terminology (tensile strength, yield strength -stress/strain, absorbed energy impact test, drop weight tear test

fracture appearance, ductility and hardness)

Definitions of heat treatment (stress relief, annealing, normalizing)

Material and equipment pressure ratings

Material and equipment derating for temperature stress level limitations(for sour service)

Deviations for materials not addressed in Z662 (sufficient technicalinformation and acceptance)

Understanding of required markings

Sour service and NACE MR0175/ISO15156

Material Test 6 Reports (dual certification) CSA/ASME

Requirements for gaskets and bolting (bolt-up procedures)

Fibre-reinforced composite pipe and fittings (manufactured and tested toAPI 15HR)

Effect of alloying agents on manufacture of steel (carbon, manganese,

CE and effect on weldability)

4.9 Environmental Considerations and Regulations

The pipeline installation inspector should, in general, to able to discuss andmanage the various environmental regulations and considerations for pipeline and

facilities construction. In general this will include:


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Spill control/clean up/containment

Waste disposal

Product, chemical and waste storage

Appropriate vegetation management and surface water run-offmanagement

Compliance with atmospheric emissions policy and regulations

Relevant provincial legislation, national and international legislationdealing with the environment

Communication with regulatory agencies and government officials onenvironment issues

Compliance with legislated testing and reporting of environmental issues

Applicable enforcement actions (or applicable regulatory body, e.g.Alberta Environment or ERCB)

Site-specific environmental issues.

Inform residents on environmental issues

Procedures necessary to deal with environmental incidents and the

people that need to be contacted

Approvals and licenses required to operate and the responsibilities thatgo along with the licenses

Communication with the owners environmental group

4.10 Surface Rights and Reclamation

The inspector should have an overall understanding of the land ownership andusage rights of all stakeholders. The inspector should also interface with some orall of the stakeholders and demonstrate due diligence in minimizing adverse

impacts to the landowners and users.

The inspector should be aware of the following:

Land ownership (crown owned, privately owned/leased,aboriginal)

Know the stakeholders


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Land and environment representative(s)

Local and municipal regulations/approvals (development permits,road use, borrow pits, signage, stakeholder approvals)

Required permits/licenses and issue agencies for the related worke.g. permit to construct

Environmental guidelines, procedures and contacts

Public consultation practices

Clearing and timber salvage requirements

Stripping and top soil handling

Right Of Way (ROW) work space and extra work space

Water draw and disposal locations/requirements

4.11 Crossings: Road, Highway, Railway, Water, Pipeline, Foreign Line,Heavy Equipment

The pipeline installation inspector should be knowledgeable and have a thoroughunderstanding of all applicable company specifications and provincial/federalacts, codes, regulations and standards when supervising pipeline installations inthe vicinity of and or underneath roads, highways, railways, and foreignlines/utilities.

The pipeline installation inspector should be able to interpret the followingsections of applicable codes and standards:

Public safety

Ground disturbance

Crossing/proximity/tie-in agreement

Emergency shut-down devices

Pipeline identification and marking

Weld procedures

Mandatory non-destructive testing


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Code requirements for record keeping applicable to pipelinesystems

Material test reports

Valve requirements

Valve location and spacing

Erosion control on roadways

Waterway and ditch erosion control

Slope gradients for fine, medium and coarse textured soils

Soil stability and wind erosion

Unstable slopes

Private/Public utility crossing

Bored crossings

Open cut crossings

Crossings of navigable waterways

Arial crossings Cased road and railway crossings

Uncased road and railway crossings

Clean up and restoration

Cathodic protection

4.12 Accountability and Liability

The pipeline installation inspector should have a good understanding of the areasof general accountability and liability as they apply to the inspection of pipelineinstallation. These should include:

Definition of Accountability (see Section 217.1 of the Criminal Code,Bill C-45)


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Understanding elements of negligence:a. Duty

i. Should meet a standard of care (act as a reasonable personwould act or, in the case of expertise, must act as a

reasonable competent person would act)ii. Foreseeable plaintiffs (who there is or who there could be)

iii. Types of duty (voluntary, involuntary imposed by law)

iv. Special duty

b. Breach of Duty

i. Failure to meet the standard of care

ii. Failure to perform or act

c. Cause (direct or indirect)

d. Damages

Avoidance of Personal Liability:

e. Act in the publics best interest

f. Adhere to adopted codes, standards and specifications

g. Act in a non-discriminatory manner

h. Professional and business-like conduct

i. Document

j. Conduct follow-up inspections as required

k. Send decisions to a higher level (deviations from established(design) codes and policies)

4.13 Soft Skills

The pipeline installation inspector be able to demonstrate the soft skills outlined

below:

i) Communications

Effective writing skills

Effective interpersonal communications


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Open and timely communication (who should be told when)

Interpretation of an organizational chart

Identification and communication with all stakeholders (residents

organizations, local media, appointed and elected governmentrepresentatives, others)

Reading skills and comprehension using the English language

Meeting management

Teamwork

Effective interpersonal problem resolution

ii) Computer Skills

Basic computer literacy

Basic word processing skills

Send and receive e-mail

Basic spreadsheet skills

Use of a digital camera

Proficiency with using the internet

iii) Management and Administration

Description and application of risk assessment procedures

Ability to prioritize tasks

Understanding of company structure

Track purchasing activities

Liaise with trucking companies, other plants and operations

Supervision of other employees

Liaise with safety department

Adherence to owners purchasing requirements


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Application of Cost Control measures in the work facility

Personal and work area time management (Planning andScheduling) techniques

Manual and electronic filing

Identify and report all incidents and near misses, hazardidentification

Knowledge of Safe Operating Practices

Recognize and report regulation violation or reportable incident

Read and interpret a Legal Subdivision (LSD) map and a surveymapping system

iv) Community Relations

Effective public community relations

4.14 CSA B51 (ASME B31.3)

The inspector should have a general understanding of the CSA B51 Boiler,Pressure Vessel and Pressure Piping Code and the ASME Code B31.3 for ProcessPiping. Of particular importance is how the inspection and testing requirementsfrom each code are applied to pipelines. The inspector should have generalknowledge of:

CSA Z662 provisions for the application of the B51 and B31.3Codes

General content and scope of the CSA B51 and ASME B31.3Codes

General understanding of typical jurisdictional relationships,involvement with process piping and documentation requirements

Definitions of B31.3 fluid services and how this relates to thematerials and basic design requirements and materials selection

Basic design and materials overview should include overview ofstress tables, requirements for typical materials used

Materials identification


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Detailed understanding of fabrication, assembly and erectionrequirements

Detailed understanding of inspection, examination and testingrequirements

4.15 Facilities Additional Requirements

The pipeline installation inspector should be generally aware of the differentrequirements for pipeline associated surface facilities. This will allow theinspector to determine whether additional inspection resources are required toensure compliance (refer to CSA Z662 Clause 1). The inspector shouldunderstand the types of facilities: well site type facilities compressors stations,dehydration, separator packages, meter skids - and the need to definejurisdictional and code boundaries/specification break.

Knowledge should include:

Pressure Equipment Safety Legislation overview:i. CSA B51

ii. Provincial legislation and regulations for Boilers and PressureVessels

iii. ASME Boiler, Pressure Vessel and Piping Codes

Authorized Inspector (a person appointed by the Provincial Regulator toadminister the provincial legislation and regulations)

Quality Control Program Requirements

Management of Change

Pressure Vessel Installation Inspections

Tank codes and regulations

Pressure Safety Devices

Pre-commissioning and Commissioning

Jurisdictional documentation requirements

Competency Assessment for Upstream Oil and Gas Pipeline Installation Inspectors[1]

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