CONTRACTORGUIDEBOOK

Midstream Business Unit Guidelines — Version 1.1

2

CommitmentResponsibilities

OMS Manager ResponsibilityOMS Employee Responsibility

OMS Contractor ResponsibilityOMS Inspector Responsibility

Service Providers

4445667

Presented by

3

OMS

1.0 Pipe Handling2.0 Preparation of Right of Way (ROW)

3.0 Pipelaying4.0 Trenching / Excavation

5.0 Lowering Pipe6.0 Welding

7.0 Tie-Ins8.0 Crossings

9.0 Civil Construction10.0 Facility Construction

11.0 Coatings12.0 Tracer Tape & Wire

13.0 Backfill14.0 Pressure Testing

15.0 ROW Clean-Up16.0 Project Sign-off

16283140434759646971748284909497

4

Commitment

Oasis is committed to the safety and health of all employees and contractors as well as the communities and environment in which Oasis operates.

1. Commitment to People

2. Commitment to Safety

3. Commitment to the Environment

4. Regulatory Compliance

Responsibilities

1. OMS Manager Responsibility

Managers are expected to demonstrate positive HSE behaviors at all times

5

OMS

Managers will engage in proactive leadership and two-way communication with all workers, contractors and consultants

Be aware of requirements presented in the handbook

Ensure that all contractors performing work for Oasis Petroleum are meeting expectations in accordance with the requirements presented in the handbook

2. OMS Employee Responsibility

Be aware of the contractor handbook and its requirements

Ensure that contractors are aware of the requirements and expectations of them and have a copy of the handbook

Ensure that all contractors working for Oasis Petroleum are meeting the expectations put forth by the handbook

6

3. OMS Contractor Responsibility

Contractors company is responsible for the contractors employees’ safety and health and ensuring that all contractors perform their work safe and acceptable manner

Contractor must become familiar with Oasis Petroleum’s requirements and expectations, many of which are outlined in this handbook. These guidelines are a supplement to, not a replacement of the contractors own safety program. In the case where the contractors procedures and Oasis Petroleum procedures conflict, the more stringent rule should be followed

4. OMS Inspector Responsibility

Responsible to know, follow, and oversee contractor use and application of the guidelines in this handbook

7

OMS

Accountable for technical quality assurance

Responsible to ensure all forms are filled out and completed prior to start, during work, and after project is completed

5. Service Providers

Ensure all work is being performed in accordance with all Oasis regulations, contractor regulations, as well as any and all county, state and federal regulations

8

VERSION 1.1

OMS Contractor Handbook

Purpose

The intent of this handbook is to provide guidance to contractors on acceptable practices and facilitate processes that are safe, efficient, and well planned out.

Expectations

It is expected that each contractor working on behalf of OMS will read an understand this manual as it pertains to their scope of work while providing services or products for or to Oasis owned property’s or Right of Ways.

CONTRACTORGUIDEBOOK

9

OMS

Resources

If as a contractor you feel as though your health and safety is in anyway compromised, or you have questions regarding the acceptable practices outlined by OMS, we request that you contact your Oasis Representative. Oasis Petroleum North America, and Oasis Midstream Services do not condone the use of force, coercion, or repercussion in communicating concerns with such matters.

Health and Safety

Oasis Midstream Services values our contractors. We ask that you value your company and yourself by observing safe work practices as outlined in your company’s safety and health manual. Below are baseline guidelines required at all times on Oasis owned properties, or while performing work on behalf of OMS.

10

Commitment

Oasis is committed to the safety and health of all employees and contractors as well as the communities and environment in which Oasis operates.

1. Commitment to People

Oasis is not satisfied unless everyone goes home in the same condition they arrived.

2. Commitment to Safety

Anyone; employee or contractor, can call a safety time-out or use Stop Work Authority to halt an unsafe condition or behavior.

3. Commitment to the Environment

Oasis is committed to the preservation of the environment. Any incident that threatens the environment must be reported immediately

11

OMS

and appropriate steps taken to mitigate and fix or clean up the issue.

4. Regulatory Compliance

Oasis is committed to maintaining regulatory compliance on the county, state and federal level.

Responsibilities

1. OMS Manager Responsibility

Managers are expected to demonstrate positive HSE behaviors at all times

Managers will engage in proactive leadership and two-way communication with all workers, contractors and consultants

Be aware of requirements presented in the handbook

12

Ensure that all contractors performing work for Oasis Petroleum are meeting expectations in accordance with the requirements presented in the handbook

2. OMS Employee Responsibility

Be aware of the contractor handbook and its requirements

Ensure that contractors are aware of the requirements and expectations of them and have a copy of the handbook

Ensure that all contractors working for Oasis Petroleum are meeting the expectations put forth by the handbook

3. OMS Contractor Responsibility

Contractors company is responsible for the contractors employees’ safety and health and ensuring that all contractors perform their

13

OMS

work safe and acceptable manner

Contractor must become familiar with Oasis Petroleum’s requirements and expectations, many of which are outlined in this handbook. These guidelines are a supplement to, not a replacement of the contractors own safety program. In the case where the contractors procedures and Oasis Petroleum procedures conflict, the more stringent rule should be followed

Contractors must be aware of Oasis Petroleum’s contractor handbook and it’s requirements

4. OMS Inspector Responsibility

Responsible to know, follow, and oversee contractor use and application of the guidelines in this handbook

Accountable for technical quality assurance

14

Responsible to ensure all forms are filled out and completed prior to start, during work, and after project is completed

5. Service Providers

Ensure all work is being performed in accordance with all Oasis regulations, contractor regulations, as well as any and all county, state and federal regulations

EHS Orientation

It is expected that contractors will complete Oasis specific orientation prior to working on behalf of OMS or Oasis Petroleum. If you or your company have not completed this orientation, or have questions regarding the time or location, please contact your Oasis Representative.

15

OMS

Job Planning and Hazard Analysis

Contractors must perform a daily JSA or Job Safety Analysis. This is to ensure they are capable of recognizing and eliminating hazards prior to performing work. JSA’s must be turned in at the end of the shift, day, or project, contingent on the request of the Oasis Representative.

Personal Protective Equipment (PPE)

OMS employees and contractors are required to wear proper PPE as each job entails. On Oasis owned locations or ROW’s, the following are required:

• FR (Fire Retardant) Clothing • Safety toed footwear • Safety Glasses • Hard Hat• Appropriate gloves for the task • H2S (Hydrogen Sulfide) Monitor• Emergency Response Plan (ERP)

16

Prior to work being performed, an emergency response plan should be discussed and understood by all personnel on the jobsite, location, or work area. Included must be muster area considerations, location information (directions and coordinates) and emergency contact information.

Program Administration

OMS Operations Production Chart(See opposite page)

Construction Best Practices

1.0 Pipe Handling

Prior to loading or unloading any pipe trucks and trailers must be parked in a way that they are level and secured. Parking (hand) brakes should be set and the wheels correctly chocked. The truck’s engine should be off and left in gear and the driver’s location known at

17

OMS

18

all times. Personnel directly involved should be the only ones within the area of pipe handling. Non-essential personnel must stay clear of work area.

Poly pipe becomes extremely slippery when wet. Caution should be used at all times when handling poly pipe, especially in rainy or snowy conditions. When handling this pipe in these conditions work slowly.

Black poly pipe becomes extremely hot when exposed to direct sunlight, therefore exercise caution and wear appropriate PPE at all times when handling black poly pipe.

Inventory

It is the responsibility of OMS personnel to oversee and record all equipment, pipes, and specials that enter or leave the OMS yard. This will be accomplished through internal inventory management systems.

19

OMS

Equipment Storage

Jobsite storage areas should have smooth, level surfaces that are free of stones, debris and other materials that may damage pipe.

If no adequate surface can be prepared, pipe should be placed on evenly spaced planking, racks, or other means of supporting and protecting pipes and equipment. Weather conditions should also be considered when storing materials that could be damaged by extreme temperatures, ice, wind, or moisture.

Pipe should be segregated and stored according to length and diameter. Piles must only contain a single size of pipe and be constructed in a pyramid shape with the bottom layer braced to prevent movement.

Off-Site Storage

Store in pipe racks according to length and

20

diameter of pipe to prevent from rolling or falling. Pipe larger than 2 inches should be stacked with spacing strips.

If pipe is stored outdoors, racks and material to build racks should be made of material that will not deteriorate.

Indoor/Outdoor Storage

Black poly pipe contains more than 2% carbon black and will resist UV damage. It may be stored unprotected from UV. Other colors must be stored no longer than two years.

Loading

1. Operator Experience

Only experienced operators are allowed to use powered equipment for handling pipe.

21

OMS

Staging area must be clear of workers, equipment and other obstacles, and must allow for clear line of sight.

2. Weight Limitations

Never exceed rated lifting capacity of equipment.

The proper and safe uses of forklifts are the responsibility of the contractor.

Inspection

Check forks for jagged edges/burrs. Forks set to widest setting.

Always lift loads from center.

Handling Loads

When moving with a load, operate as close to the ground as possible, but do not allow

22

pipe to drag. Move the equipment slowly as to avoid bouncing.

Front End Loaders

The proper and safe use of front end loaders falls under the responsibility of the operator.

1. Compliance

If equipped with forks, loaders are used as forklifts and treated as such. Always maintain stability and center of gravity precautions.

Pipe Handling Accessories

Chains, steel cable, wire rope, or hooks directly on poly pipe or fittings are not to be used to handle poly pipe.

23

OMS

3. ROW Construction

General

The ROW is the most permanent picture of the quality of work that OMS perfoms. The steps involved in acquiring, maintaining, and leaving the ROW are extremely important to our relationships with the public, our reputation, and the property and assets that we operate.

One-Call

A One-Call must be made prior to any digging being performed. This can be done by calling 811 or by faxing the locate information to North Dakota One- Call at 1-(877) 651-7030. The form for this process can be found at North Dakota One-Call’s website

24

(www.ndonecall. com). In Montana, you will need to have pre-approval to Fax-a-Locate. Montana’s One-Call fax number: (406) 752-7306 and website: (www.mt1call.com).

*Faxing a locate to ND One-Call will only be available through the end of Dec 2014.

Locate Wait Duration

After the One-Call is made, a line locator will normally arrive at the desired location within 48 hours of the One-Call submission to locate any Oasis, or other entity’s lines. Oasis does not authorize excavation prior to lines being located under ANY circumstances. The locate “ticket” needs to be followed to the exact specifications written on the ticket.

Line Locating

25

OMS

1. Project Relocating / Re-spots

After a line has been located, there are many things that could require a “re- spot” including:

• Flags were moved by landowner• Flags were moved by contractor/service

provider• Uncertainty about accuracy of utility /

facility markers• Change in job scope / area• One-Call tickets whose territory located

does not clearly indicate where the locate starts or ends.

Distance from Flags

Minimum distance to maintain is 2 feet from any flag or utility marker, in any direction.

HydroVaccing

Hydrovaccing is the process of locating a line with non-destructive means. Water is used

26

27

OMS

in lieu of shovels, excavation equipment, etc. This process uses water at high pressures to locate lines, and has the additional benefit of vacuuming, or removing the water/mud that is created in the process. All tie-ins must be hydrovacced, as well as any time a line crossing is performed.

Relocating

Locate tickets are good for 21 days only. The locate ticket will indicate the expiration of the One-Call.

28

2.0 Preparation of Right of Way (ROW)

Clearing

Removal of brush, grass, weeds, trees, crops, or anything that is on the ROW. Contractor will use Brush Hog, or other sufficient means to accomplish this.

Grading

Preparing the ROW to the standard grade, side hilling, acquiring proper highs and lows to ensure your equipment gets through without issue.

Topsoil

Cut into your soil top. Location geography will determine depth of topsoil. Topsoil is moved to one side of ROW until the final step where it will be redistributed evenly. State lands require 12 inches of topsoil to be removed.

29

OMS

ROW Access

Oasis Petroleum will obtain easements for rights-of-way and permits for road and railroad crossings. Contractor may only access the ROW from approved public roads and points specifically designated by an Oasis representative.

Housekeeping

Poly shavings

Any waste materials created during the process of stringing, fusing, bending, or shaving pipe must be gathered and disposed of in the correct manner. They are not to be buried.

Tools

Tools must be kept a minimum of 2 feet from the edge from any excavation including open excavation, trench, bell hole, etc.

30

Equipment Storage

Equipment storage locations/laydown areas must be established prior to the job starting, and any agreements for additional space will be initiated by the contractor but must have Oasis approval. The cost of these areas may be assessed only to the contractor, however, Oasis may choose to be involved or lead in the negotiation process.

Preservation of ROW

Contractor shall offset all centerline and locating stakes in a uniform manner, as required for clearing and grading. After clearing and grading, contractor shall reset the stakes in their original position. Contractor shall be held responsible for the preservation of all stakes and line markers. Contractor shall bear the cost of replacing any stakes destroyed or lost and re-survey work required.

31

OMS

3.0 Pipelaying

General

The method pipe is laid, sealed, and buried holds the fundamental keys to OMS success. If our contractors, internal departments, and engineering groups do not work together as one unit, the process will not be a success. The following guidelines are written with the intent of managing quality while providing reference material for all to review in the case of concern, and to ensure the highest possible quality.

Stringing

A) Quality Control

Contractor shall string the pipe along the ROW and shall align the same in accordance with good pipeline construction practices using only the pipe furnished by Oasis. Stringing

32

of pipe on the ROW shall be done in such a manner as to cause the least amount of interference with the normal use of the land crossed, and gaps shall be left at intervals to permit use of the land, and passage of farm stock and equipment across the ROW.

Unloading Methods

Pipe is to be unloaded from the stringing trucks and lowered to ground on Oasis representative approved padded skids by using canvas slings or pipe hooks. Pipe is not to be rolled off the truck.

Inspection

After pipe has been strung, Oasis and contractor will inspect it. Contractor shall reimburse Oasis for all damaged pipe.

Bedding

33

OMS

Bedding material must be clean sand or soil and must not contain stones having a maximum dimension larger than 0.5 inch. Material must be placed to a minimum depth of 6 inches under the pipe and 6 inches over the top of the pipe.

Fusing

General Considerations

All personnel performing butt-fusing operations and procedures must at minimum, prior to work, understand and review manufacturer recommendations and requirements. Oasis can provide these manuals if contractor does not have access to these materials.

The process of Butt fusion joins plain end polyethylene pipes and fittings end-to-end without couplings, inserts or additional materials.

34

Other equipment such as pipe supports and appropriate equipment for handling pipe and fittings will be required.

Butt Fusion Joining Restrictions

The ends of pipes and other components such as fittings, flange adapters, MJ adapters, etc., that are joined together must have the same outside diameter and comparable wall thickness. Additional information about thickness and diameter compatibility is found below.

Fusion Quality Verification – Data Logging and Testing

It is recommended that hydraulic butt fusion machines be equipped with data logging technology to monitor and record time, temperature and pressure during fusion. Field fusion data logger records that compare favorably with tested trial fusion data logger

35

OMS

records can provide confidence in field fusion quality.

The pipes and specials shall be jointed by automatic butt or electro fusion welding to form a string above ground and shall be supported by smooth rollers support of a design approved by the Oasis representative Three standard lengths of pipe on each side of the fusion machine shall have a minimum of two roller supports per length of pipe. All fusion joints shall be inspected and assessed with joint record printouts from the automatic butt or electro fusion machine. The Oasis representative or his representatives shall approve all joints before the contractor is allowed to proceed with pipelining works.

Tests such as root bend tests for metal welds, bending a strap or coupon in a bench vise, bending back and forth multiple times, or hammering on bent or unbent specimens are not reliable indicators of butt fusion quality.

36

Although commercial equipment is available, side-bend and field tensile tests are unproven, experimental technology and are not reliable fusion joint quality indicators.

Weather Guidelines

Butt fusion can be successfully performed over a broad range of field conditions. However, some weather and temperature conditions can affect equipment operation or performance, or could potentially introduce contaminants, compromising joint quality. Joining procedures may need to be adjusted to compensate for wind, weather or temperature. PE pipe and fittings will expand and contract with changes in temperature. If butt fusion machine pipe clamp closure is limited, shims of elastomeric material may be necessary to secure very cold pipe against slippage. In four-clamp machines, shims should be used only in the outer clamps.

37

OMS

Wind Effects

A windbreak or shelter should be used when jobsite wind intensity exceeds “gentle breeze” conditions.

Wind intensity above “strong breeze” may require suspending fusing operations.

Bending

Field-Bending – Steel Pipe

Contractor shall make all necessary field bends required in the construction of the line except those shop bends which company shall specifically furnish. Contractor shall also fit the pipe to the contour of the bottom of the ditch, and shall restrict the arc and increase the radius of the bends to such an extent as will prevent the buckling or flattening of the pipe, weakening of welds, and will permit the free passage through said bend of an internal

38

inspection type of pipeline scraper. All bends shall be made using a lined bending shoe so as to eliminate scratching and gouging of the pipe.

Dimensions across the minimum and maximum axis of the field bends will be subject to measurement and shall not have a difference in excess of 2.53 degrees.

Each field bend shall comply with the following:

• The bend must be smooth and uniform. On pipe 12 inches and larger an internal mandrel shall be used.

• After bending the pipe must be free from buckling, cracks, or any other mechanical damage and must conform to the profile of the completed ditch.

• There must be no wrinkle bends or mitered bends (not including deflections up to 3 degrees that are caused by misalignment).

39

OMS

• No girth weld may be placed inside the bending shoe if the weld protrudes above the outer wall of the pipe.

• Pipe containing a longitudinal weld must be bent so that the seam is located near the neutral axis.

• No bend shall be made any closer than 5 feet from the end of a joint or 3 feet from an existing girth weld.

Field Bend Data - Steel Pipe

All field bends shall be made by the cold stretch bending method, and an accurate method of measurement shall be used to determine the tolerances as follows:

40

4.0 Trenching / Excavation

Dig Permit

Prior to any excavation an Oasis dig permit must be complete [OMS Form 1000]. Included in this permit are required action items including: ensuring the applicable state one-call system has been utilized; all potential utilities and facilities have been identified; and areas of concern hydrovacced etc. If an excavation is determined to be 48 inches or greater in depth, adequate sloping, shoring, or trench boxes must be created or installed. Other action items include: North Dakota One-Call has been notified and contacts conducted to determine existence and location of underground facilities in the work area.

Soil Classification and Sloping

In North Dakota, while soil classification may change due to multiple factors, Oasis

41

OMS

Petroleum considers all soil to be Class C (the least cohesive soil). This means that all sloping must be performed with a consideration of 1.5 feet wide for every 1 foot deep, in a circumference around the deepest point of the trench or bell hole.

Daily Inspection

A competent person must inspect trenches that individuals plan to enter, or could potentially enter as a part of their work scope. Trenches will be tested for: resistivity of the soil; porosity of the soil (classification test); crumbling; distance of spoil pile from trench; as well as any shoring/trench box systems. All trench boxes or shoring must be approved by the manufacturer to be used at the depth they are planned to be used in, for the type of material they are supporting, and must not be modified in any manner that could affect the integrity or safety of these units.

42

Trench Boxes / Shoring

Trench boxes and shoring are protective measures designed to eliminate the likelihood of a trench caving in when personnel are working inside. These methods are required whenever a trench or open excavation require an employee to work below 4 feet of depth, and proper sloping cannot be established.

43

OMS

5.0 Lowering Pipe

Trench Bed Condition

The trench bottom shall be free from all rocks, boulders, stones or hard particles when particles, which may damage the pipe walls. The trench bed should maintain the minimum approved depth taking into consideration the contour of the land.

Before any pipes or specials are lowered into the trench, they are to be inspected again for deep cuts and scratches described above. The fusion joints should also have cooled sufficiently (specified cooling time for the last joint has elapsed) before stress is imposed on any premade joints.

When lowering pipe into trenches, care should be taken to avoid scoring of the pipe by contact with the sides and bottom of the trench. Special care is needed when passing

44

under/around obstructions or other utilities.

Pipe roller supports for the first four lengths of pipes from the pipe end to be lowered into the trench shall be provided. Cut section of rejected or damaged PE pipes, planks and rope shall be used for protecting the remaining pipes where appropriate, but wire ropes or chains shall not be used.

Trench Bed Material

Trench bottoms shall be layered with well-graded earth that is free from stones or hard particles larger than two inches in diameter. Under no circumstances shall hot bending, in any form, be allowed on site. A minimum distance of one foot from obstructions and other services must be maintained for the length of the pipeline. The pipe shall be kept as central as possible within the trench to enable correct side-fill compaction. Some snaking to compensate for thermal expansion of the pipe

45

OMS

will be allowed.

Pipes and fittings to be embedded in concrete shall be firmly held in position and protected from damage during pouring or compaction by a heavy-duty polyethylene sheet. Should any pipe or specials become either partially or wholly clogged before final acceptance of work, it shall be cleaned out or replaced by the contractor at his own expense.

After laying the interior of pipes or specials shall be carefully cleaned to remove any debris, dirt, stones or other matter that may have entered during installation.

Except when work is proceeding, all open ends of pipes and specials in the trench shall be kept closed by means of a fine wire gauge, wooden stopper or other approved means to prevent the entry of dirt, soil, stones and the like, but still allow the entry of water.

46

C) Inspection & Testing

The inspector must inspect for deep cuts or scratches that gouge deeper than 10% of the pipe wall thickness.

The depth of these gouges should be measured with approved depth gauges of suitable accuracy supplied for the sole use of the Oasis representative or his representatives by the contractor.

All damaged or flawed section of pipes shall be cut out and removed to the satisfaction of the Oasis representative before jointing according to OMS Section 4.13.

47

OMS

6.0 Welding

Line Pipe - General

The Contractor is responsible for adhering to welding specifications and guidelines set out by ASME B31.8. Please Reference Appendix.

Hot Work Permits

Hot Work Permits must be completed prior to any hot work being performed on behalf of Oasis Midstream Services.

Line Pipe Welder Qualifications

Welders must pass all required verification tests in order to weld on any OMS pipeline. This includes all welded fabricated parts or pipe.

Equipment

48

Contractor shall furnish all welding equipment, prepare all spools used in testing and shall bear all cost in connection with the test other than the cost of the pipe, which will be furnished by Oasis.

Weather

Welding must be protected from weather conditions that would impair the quality of the completed weld. At times this may require constructing a barrier wall or enclosure (provided with adequate ventilation) to protect the welds from adverse weather conditions.

Boring

A) Equipment Requirements

The directional boring equipment shall consist of a directional boring rig of sufficient capacity to perform the bore and pullback the pipe, a

49

OMS

50

boring fluid mixing and delivery system of sufficient capacity to successfully complete the crossing, a guidance system to accurately guide boring operations and trained and competent personnel to operate the system. All equipment shall be in good, safe operating condition with sufficient supplies, materials and spare parts on hand to maintain the system in good working order for the duration of the project.

Boring System

Boring Machine

The directional boring machine shall consist of a hydraulically powered system to rotate, push and pull hollow drill pipe into the ground at a variable angle while delivering a pressurized fluid mixture to a guidable drill (bore) head. The machine shall be anchored to the ground to withstand the pulling, pushing and rotating pressure required to complete the crossing.

51

OMS

The hydraulic power system shall be self-contained with sufficient pressure and volume to power boring operations. Hydraulic system shall be free of leaks. Rig shall have a system to monitor and record maximum pullback pressure during pullback operations.

The rig shall be grounded during boring and pullback operations. Sufficient spares shall be kept on hand for any breakdowns, which can be reasonably anticipated.

Bore Head

The bore head shall be steerable by changing it’s rotation and shall provide the necessary cutting surfaces and boring fluid jets.

Mud motors shall be of adequate power to turn the required boring tools.

It is required that the boring profile is supplied electronically, with operator’s signature and be supplied upon invoice.

52

Guidance System

The Guidance System shall be of a proven type and shall be set up and operated by personnel trained and experienced with this system.

The operator shall be aware of any magnetic anomalies and shall consider such influences in the operation of the guidance system if using a magnetic system.

Boring Fluid (Mud) System

Mixing System

A self-contained, closed, boring fluid mixing system shall be of sufficient size to mix and deliver boring fluid composed of Bentonite clay, potable water and appropriate additives. Mixing system shall be able to molecularly shear individual Bentonite particles from the dry powder to avoid clumping and ensure thorough mixing. Mixing system shall

53

OMS

continually agitate the boring fluid during boring operations.

Boring Fluids

Drilling fluid shall be composed of clean water and an appropriate additive. Water shall be from a clean source with a pH of 8.5-10. Water of a lower pH or with excessive calcium shall be treated with the appropriate amount of sodium carbonate or equal. The water and additives shall be mixed thoroughly and be absent of any clumps or clods. No hazardous additives may be used. Boring fluid shall be maintained at a viscosity sufficient to suspend cuttings and maintain the integrity of bore wall.

Delivery System

The mud pumping system shall have a Gallon Per Minute (GPM) capacity equal to the hole size and be capable of delivering the boring

54

fluid at a constant minimum pressure of the same. The delivery system shall have filters in line to prevent solids from being pumped into the drill pipe. Connections between the pump and drill pipe shall be relatively leak-free. Used boring fluid and boring fluid spilled during boring operations shall be contained and properly disposed of. A berm, minimum of 12 inches high, shall be maintained around boring equipment, boring fluid mixing system, entry and exit pits, and boring fluid recycling system (if used) to prevent spills into the surrounding environment. Pumps and or vacuum truck(s) of sufficient size shall be in place to convey excess boring fluid from containment areas to storage facilities.

Pipe Rollers

Pipe rollers, if required, shall be of sufficient size to fully support the weight of the pipe while being hydro-tested and during pull-back operations. Sufficient number of rollers shall used to prevent excess sagging of pipe.

55

OMS

Other Equipment

Pipe Rammers/Pullers

Hydraulic or pneumatic pipe rammers or pullers may only be used if necessary and with the authorization of OMS engineering department.

Boring Operations

General

The inspector and engineering department must be notified 48 hours in advance of starting work. The directional bore shall not begin until an Oasis representative is present at the job site and agrees that proper preparations for the operation have been made. The engineer’s approval for beginning the installation shall in no way relieve the contractor of the ultimate responsibility for the satisfactory completion of the work as authorized under the contract.

56

It is the responsibility of the construction department to provide inspectors without causing undue hardship by reason of delay to the contractor.

All personnel shall be fully trained in their respective duties as part of the directional boring crew as well as in all safety considerations. Training shall be provided specific to the project if any potential hazards may be encountered which has not already been included in personnel’s training.

Boring Procedure

Site Preparation

Prior to any alterations to the worksite, contractor shall photograph or record a video of the entire work area, including entry and exit points. One copy of which shall be given to engineer and one copy to remain with contractor for a period of one year following the completion of the project.

57

OMS

Bore Path Survey

Entire drill path shall be accurately surveyed with entry and exit stakes placed in the appropriate locations within the areas indicated on drawings. If contractor is using a magnetic guidance system, drill paths should be surveyed for any surface geomagnetic variations or anomalies.

Environmental Protection

Contractor shall place silt fence between all boring operations and any drainage, wetland, waterway or other area designated for such protection by contract documents, state, federal and local regulations. Additional environmental protection necessary to contain any hydraulic or boring fluid spills shall be put in place, including berms, liners, turbidity curtains and other measures. Contractor shall adhere to all applicable environmental regulations. Fuel or oil may not be stored in

58

bulk containers within 200 feet of any body of water or wetland.

An Oasis Representative must be present prior to releasing any wastewater on any Oasis location.

E) Utility Locates

Contactor shall notify all companies with underground utilities in the work area via the state or local One Call to obtain utility locates. Once the utilities have been located contractor shall physically identify the exact location of the utilities by vacuum or hand excavation, when possible, in order to determine the actual location and path of any underground utilities which might be within 20 feet of the bore path. Contractor shall not commence boring operations until the location of all underground utilities within the work area have been verified.

59

OMS

7.0 Tie-Ins

General

The intent of this section is to provide guidance for construction operations regarding the connecting of two or more pipelines with the intent of optimizing pipeline infrastructure.

Water Considerations

Tie-ins or tested sections containing fill water for sections to be subsequently tested shall not be made in cases where excessive air, entrapped as a result of the tie-ins, will be injected into the section to be tested.

*Note that in many cases the loss of water at tie-ins will be considerable.

In such cases this water shall not be allowed to flow into running streams, rivers or wells that are used for domestic water supplies.

60

Backfilling

[ref. Section 4.13] At the tie-in sites shall be carried out in accordance with the General Construction Specifications.

C). Cold Cutting

Cold cutting needs to be done with either non-sparking equipment on live tie-ins or a guillotine system. A grounding system to discharge static electricity build up must be utilized.

Live Tie-In

General

Any Hot Tap performed on a pipeline under pressure can only be performed by a crew qualified to make Hot Taps. Contractor must supply sufficient documentation to Oasis indicating qualification of individuals performing Hot Tap procedures.

61

OMS

Requirements

Hot Tap design, materials, procedures and practices shall be in accordance with the latest edition of API Standard 2201, “Procedures for Welding or Hot Tapping on Equipment Containing Flammable Liquids”; API Standard 1104, “Standard for Welding Pipelines and Related Facilities”; API Standard 1107, “Recommended Pipeline Maintenance Welding Practices”; ASME B31.8, “Gas Transmission and Distribution Piping Systems”; and all applicable Department of Transportation Regulations, except as otherwise specified herein.

Cleaning

All rust, dirt and foreign matter shall be removed from the bevel surface before welding is started; the bevel surface includes the area on the inside of the pipe in the immediate proximity of the pipe end. Slag shall be removed from the bead surface before the

62

next bead is applied. Power tools may be used. The finished weld and immediately adjacent pipe must be cleaned of all flux, smoke and weld splatter.

Hot Tap Operation

Hot Tapping operations are to be carried out by a qualified technician who is thoroughly familiar with all applicable safety procedures and industry standards.

Testing

1. The metal thickness of the existing header is to be measured radio graphically, and absence of imperfections is to be verified prior to beginning any part of the welding or hot tapping procedure.

2. All welds are to be tested in accordance with applicable ASME standards or equivalent and their quality to be determined by the judgement of the welding inspector.

63

OMS

3. After welding of the full encirclement saddle is complete, but before hot tapping begins, the branch connection is to be completed in the manner in which it will be operating, and a hydrostatic test performed.

Squeezing

Squeeze tools will only be used in emergency situations, and not ordinarily for day-to-day operations. Isolation and draining down areas (prior to hot-tap, etc.) will be implemented in normal conditions.

Potentially to be used on location during operations in close proximity or the risk for a line strike is high due to other circumstances.

64

8.0 Crossings

General

This section provides guidance on the processes implemented when crossing any OMS, or foreign utility during construction processes.

Approvals

Oasis shall procure easement permits for the highway and railway crossings, but contractor shall perform no excavation on the highway or railroad ROW without direct written approval from Oasis. Contractor shall review all permits and be knowledgeable about all of the requirements and restrictions of crossing permits and shall conduct the work in strict accordance with such requirements and restriction, including notification of highway and railway representative.

65

OMS

Line Crossings

Land department shall obtain approval of the landowner of any foreign pipeline for the installation of test leads on the foreign line. Contractor shall, upon receipt of owner’s approval, install test leads on the foreign line and repair the coating to the owner’s satisfaction.

Road Crossings

State & County Road Crossing - Cut Roads

County regulations must be referenced prior to any civil construction or deconstruction operations commence.

Water Crossings

Contractor shall construct the pipeline across drainage ditches, bayous, creeks, streams, canals, rivers and adjacent lowlands and flood

66

plains. Unless specifically set forth in writing, no extra payment will be made to contractor by Oasis for such ditches, creeks and rivers. Such crossings are to be considered as part of the work.

Weights & Anchors

Sections of the line to be laid across lakes, washes, rivers and waterways shall be weighted or anchored as specified by Oasis. Contractor shall furnish all materials and equipment, including weight and anchors except as specified to be furnished by contractor. Contractor shall do all work necessary to transport, string and install weights and anchors at locations and in the manner designated by Oasis.

Several thicknesses of rock shield shall be placed between the pipe and each weight. Where weights are installed on long sections of pipe, care shall be taken in handling to prevent buckling of the pipe.

67

OMS

Pipeline anchors must be installed in accordance with manufacturer’s specifications. During installation, every precaution shall be taken to prevent damage to the pipe and coating.

Railroad Crossings

Boring shall be done from pits located a minimum of 30 feet from the edge of pavement on fully access-controlled highways and at a distance of 10 feet plus the depth of pit without shoring on conventional highways. If shoring is used, the pits shall be located at a minimum of 10 feet from the pavement on conventional highways. Such shoring shall be installed immediately after excavation of the pit and it shall be constructed and maintained so that it will safely support all vertical and lateral loads that may be imposed upon it during the boring operation.

Pits for boring shall be excavated no more than

68

48 hours in advance of boring operations and backfilled within 48 hours of boring operation completion.

Section Lines

Requirement for installed facilities to be a minimum of 2 feet deeper than depth of trench. Section lines have the potential to become roads in the future, and this should be considered when crossing section lines.

69

OMS

9.0 Civil Construction

General

This section overviews construction in relationship to roadways, railways, and other public or private use structures, generally operated alongside the transmission of petroleum, water, or other assets.

Handling

All structural materials shall be handled in a manner to prevent material damage. The material shall be supported on skids that are properly spaced to prevent permanent deflection in the structural member. Skids shall be of adequate size to keep the material above ground, clean and properly drained.

Welding shall be done in accordance with the Code for Fusion Welding and Gas Cutting in Building Construction Code I Part A, Structural Steel, of the American Welding Society.

70

Cleaning & Painting

All structural steel shall be cleaned and painted after final installation.

Roads / Walkways

Normal location walkways need to be installed to prevent slip, trip and fall hazards due to inadequate walking surfaces. Material such as scoria/gravel should be used.

Location / Well Pad

All locations and well pads should have an engineered drawing showing all underground lines; utilities lines; well names; roads; crossings; foreign lines leaving location; old reserve pits located; and equipment (electrical & mechanical) logged to map.

71

OMS

10.0 Facility Construction

General

Facility construction covers many important aspects of OMS procedures. The quality of the equipment provided, as well as ensuring the proper application and planning is imperative to the safe and efficient operation of OMS pipelines.

Pumps

Installation

Depending on elevation and number of wells on site, pumps are sized accordingly by engineering in Houston. Hand sketch drawings are sent from field to weld shop.

Houses

In most applications, houses will be designed and built prior to being installed on location.

72

Insulation

Freshwater connections need to be heated and insulated to prevent freezing.

Heat tape

All above ground pipes require heat tape and insulation to prevent freezing.

Risers

Risers will be built completely by certified API 1104 quality welders. They will have both a purge as well as a non-purge procedure. We will use 316 stainless steel for all saltwater above ground pipe.

Instrumentation and Electrical (I&E)

Automation

The transfer pump is controlled by two controls, one is the tank level with high/ low

73

OMS

setting, the other is the pressure transducer controlling the pump per its engineered MAOP.

Measurement

Meter – meter calibration frequency to be designated by OMS Engineering. All calibration must be accompanied with documentation.

Leak tests should be performed quarterly.

74

11.0 Coatings

General

Protective coatings are imperative for the integrity of all pipelines. Dings, scrapes or nicks can cause anomalies that last the lifetime of the line, and pose serious risk to all stakeholders near pipelines as well as significant risk to the environment.

Painting

1. Surface Preparation

Surface shall be degreased prior to sandblasting. Organic solvents, alkaline solutions, steam, hot water with detergents, or other systems that will completely remove dirt, oil, grease, etc., may be used.

75

OMS

Edge Preparation

All edges shall be ground to a minimum of 1/8-inch radius. This includes clips, baffles, nozzle connections, etc.

Surface Abrasion

The immersion service surface shall be blasted to a NACE (National Association of Corrosion Engineers)

No. 1 or SSPC (Society for Protective Coatings)-sp5-63 white metal blast cleaned surface. An anchor pattern or “tooth” in the metal shall be established according to the coating manufacturer’s recommendations. The anchor pattern shall be sharp and no evidence of a polished surface is allowed.

Sandblasting

Steel surfaces shall not be blasted when the surface temperature is less than 5°F above

76

the dew point, relative humidity is greater that 80%, or there is a possibility that the blasted surface will be subject to wetting before the first coat of primer can be applied. No painting shall take place when the ambient temperature is below 50°F.

Surface Cleaning Post-Sandblasting

Remove all traces of blasting abrasive and dust with a vacuum cleaner or by brushing. Care must be taken to avoid contaminating the surface with fingerprints or from detrimental material on the workers clothes or shoes.

Immediate Priming

Since freshly blasted surfaces are subject to immediate corrosion, particularly in areas of high humidity, no more surfaces shall be blast cleaned than can be prime- coated before visible or detrimental re- rusting occurs. Blasted surfaces shall be prime-coated or

77

OMS

plastic-coated no later than at the end of the same workday.

A 12-inch wide strip of uncoated, blasted surface shall be left between primed surfaces and those non-blasted surfaces to prevent damage to the newly dried coating when additional blasting is done. When blast cleaning is resumed, the 12- inch strip of previously blasted surface shall require only a light brush blast to remove any rust that might remain. Cleaning shall be accomplished by holding the cleaning nozzle in a direction away from the coated surface.

Compressed Air Quality

The compressed air used for blasting shall be free of detrimental amounts of water and oil. Adequate traps and separators shall be provided at the compressor and must be checked daily.

78

External Painting

All piping, equipment, structures and metal portions of buildings, not galvanized or of aluminum construction, shall be painted to protect against corrosion and to provide a satisfactory appearance. Equipment and piping to be insulated will be protected with one primer coat only. A minimum of one primer coat and one finish coat shall be applied to un-insulated equipment. Floors may be colored, coated or hard- surfaced as specified.

Moisture Trap

A moisture trap shall be placed in line from air supply to pressure pot and spray gun. This trap shall be opened slightly to provide a continuous bleed.

Application Distance-Primer

Primer shall not be applied closer than 12 inches to a non-blasted area. Any subsequent

79

OMS

blasting operation shall not result in sand particles being embedded in the paint film.

Spray Guns

Spray guns must be held perpendicular to the surface being painted, and handled and adjusted in such a manner that dry overspray is kept to a minimum.

Confined Space Ventilation

When paint is being applied to the interior of tanks or confined areas, sufficient blowers and fans shall be installed to provide adequate ventilation.

Priming

The prime coat shall be a high build type with a minimum dry film thickness of five (5.0) mils to six (6.0) mils, depending on the brand used.

80

External Applications - Weather

Application of the external coatings is allowed only when the air, surface and product temperatures are above 50°F (10°C) and at least 5°F (3°C) above the dew point.

Paint Thinning

Only best quality products will be used and paints shall be thinned only as recommended by the manufacturer. Resin systems or two component systems will be used within the pot-life time specified and in no case shall any thinning be used.

Curing

Each coat will be thoroughly dried or cured before the next coat is applied.

81

OMS

Jeep Sticks

If a nick (or holiday) is found in a coated steel pipe, a hot melt patch is needed to repair it.

Insulation

Pipe should be adequately insulated if placed above 4 feet in depth. The quality of the insulation such be such that the R-Factor can protect against anticipated temperatures.

82

12.0 Tracer Tape & Wire

General

It is imperative that all utilities installed by Oasis Midstream Services have the ability to be located. This includes correct installation, and integrity management of locating devices.

Depth

All tape must be installed above the pipe and a minimum of 2 feet below the surface of the top of the existing ground surface and be made of magnetic material. With crowning, this may require the tape to be at an even greater depth. Consult Oasis representative if unsure.

Wire Location

All tracer wires must be installed according to section DOT 192.321 or 195. Test lead should locate ideally within 1⁄4 mile to ensure

83

OMS

adequate coverage.

Test leads shall be color coded with a proper sticker to indicate company name, product in pipe and emergency contact, preferably a tri-sided (triangular) post.

Wire Protection

Anode protection is required on all tracer wires.

84

13.0 Backfill

Material

Fill from bottom of ditch to 12 inches above top of pipe shall be free from rocks, frozen clods or other hard objects. Contractor shall bear the cost of any special treatment necessary to eliminate such hard objects.

Topsoil

Topsoil is considered to be the top layer of soil. At times, topsoil by standard definition will not apply, in which case the top 2’ of soil will be considered “topsoil”.

Topsoil shall be segregated in a method that protects it from overburden, being trampled, or from mixing with fill dirt. Contractor is responsible for maintaining the separation and quality of topsoil.

85

OMS

Topsoil Preservation

Where required by company or by ROW agreement, topsoil shall be segregated from other spoil and placed at the top of the fill to the specified depth. In cultivated areas, no rock shall be placed in the top of the fill above the depth of normal tilling. Surplus rock shall be disposed of by contractor to the satisfaction of company, landowner or tenant. Contractor shall also comply with any requirement concerning the order, in which respective materials are backfilled, contained in the applicable ROW restriction.

Backfill Method

Backfill Material

Immediately after the pipe has been lowered, it shall be shaded by filling the ditch over the pipe with backfill material.

86

Backfill material shall be placed around the pipeline in a manner to ensure that no significant rocks, vegetation and foreign objects contact the pipeline in a way that could cause damage, there should be special considerations for the initial 2 feet of backfill.

General

Backfilling shall be performed to minimize the impact of the ROW and to maintain the minimum distance of disturbance. Backfilling shall be done in such a manner as to ensure filling the space below and up the sides of the pipe with loose earth. Contractor shall employ any acceptable method approved by Oasis or Oasis representative, which will insure compaction of the backfill and at the same time not deflect the pipe from its normal roundness. Backfill packing shall not be done through rocky land where the exterior pipe or coating might be damaged, or through sections where drain tile is encountered and might be damaged.

87

OMS

Final Compaction

Compaction may be accomplished by tamping or other method approved by company. “Walking in” with a track or wheeled vehicle is normally acceptable on wide ditches, subject to prior company approval. There shall be a minimum of 30 inches (30”) of cover over the pipes prior to compaction by vehicles. The wheel or track must be narrower than the ditch line for effective compaction. Where non-ferrous or large diameter thin wall pipe (d/t greater than 50) is involved, a limit may be placed by company on the maximum weight of the vehicle, or there may be a requirement that the line be pressurized during the operation. Compaction to a density that will prevent excess settling of the ditch backfill material is required.

Moisture

At road crossings where selected backfill material is required, it shall have the proper

88

moisture content to reach necessary 80% compaction and the moisture content shall be uniform throughout each layer.

Restoration of Construction Areas

All roads, slopes, creek banks, levees and other places where contractor has moved earth to facilitate the movement or operation of his equipment shall be restored to original profile and condition, to the satisfaction of the company and the property owner.

Overburden / Crown

Backfill over the pipe ditch shall be crowned to a height of not less than 8 inches (8”) and not more than 12 inches (12”) above the adjacent ground surface, except through irrigated farm land where the backfill will be compacted to the satisfaction of company and the landowner through rocky lands where livestock is confined, 20-foot wide gaps shall be provided

89

OMS

across the backfilled line at 100-yard intervals to provide passageway for livestock.

Gaps shall be level with surrounding ground and surfaced with backfill material free from large and sharp rocks, all to the satisfaction of company’s inspector, the landowner or his tenant.

Reinforcing

As necessary, contractor shall reinforce the backfill in the banks of rivers, streams, ravines or other watercourses, irrigation or drainage ditches, as well as farm terraces with earth filled sacks, rock riprap or concrete headwalls. Contractor shall, at his own expense, repair damage to levees, roadways, lanes, private drives and farm terraces, as may be caused by settling or washing through the ditch portion of same, up to and including the date of acceptance of the work included herein and through the one-year warranty period.

90

14.0 Pressure Testing

General

The intent of leak testing is to find unacceptable faults in a piping system.

If such faults exist, they may manifest themselves by leakage or rupture; this may result in catastrophic failure. Piping system rupture may result in sudden, forcible, uncontrolled movement of system piping or components, or parts of components.

Location of Equipment

The pipe system under test should be restrained against sudden uncontrolled movement from catastrophic failure. All poly pipe should be located in the trench and backfilled.

The air compressor should be located a

91

OMS

minimum of 20 feet and no more than 25 feet from the end of the pipe being tested. The discharge hose or hard piping should be secured to the ground in a manner to restrain it from movement in the event of a catastrophic failure. Restraints such as stakes and cables, straps or tie downs are acceptable. Any other style of restraint has to have DGC approval.

The pressure-recording device is to be located a minimum of 20 feet and no more than 25 feet from the test head, and is to be located perpendicular to the pipe being tested. The recorder’s placement should be out of the whipping radius of the compressor’s discharge hose or hard piping. All chart recorder hoses are required to have restraint techniques as well. The recording device should be a chart recorder, digital recorder, or any other recording device approved by DGC for any length of pipe. Certified crystal gauges or dead weights will be required for the duration of the

92

air test. Certifications will be required for all recorders and gauges for the test duration.

Test Duration

All piping systems are required to have a test duration of no less than 8 hours. There will be no exceptions of pipe footage to not be tested. The maximum length for a single tested piping system is 20,000 feet.

Water Sources

Quality

All water used in pressure testing must be of a known clean source, as well as treated with an agent that eliminates the potential for bacteria growth.

Quantity

The quantity of water used will be determined by the Oasis representative.

93

OMS

Depressurizing

After the line has been tested, contractor will relieve pressure by means of opening a valve downstream predetermined by Oasis representative.

Dewatering

Disposal of Water

Water should be disposed of in accordance with all local, state, and federal laws. It is acceptable that water removed from the pipeline trench be disposed of on the ROW.

94

15.0 ROW Clean-Up

Post-Construction Clean-up

It is expected that all construction materials will be removed from the ROW as well as any established laydown areas, roadways, and approved staging yards. Other restoration agreements may be in effect, and are as follows:

Fences

Fences must be restored to original or better than original condition prior to project finalization.

Gates

Permanent gates must be installed across all ROWs.

95

OMS

Line Markers

Permanent line markers must be installed prior to project completion.

Test Leads

Test leads must be installed at minimum every mile, at every road crossing, and at every bore start and end point.

Reseeding

Reseeding must be completed according to ROW agreements, and with proper seed for the region in which it is performed. Consult federal, state, and local regulations for correct type of seed.

Erosion Control

Stake Bales, Straw waddles, or water bars must be used when the possibility of slope erosion

96

is imminent. Near regulated lands (U.S. Corps of Engineers, Federal, state, Bureau of Land Management, etc.) Silt fence must be used to provide a filtration barrier and protect the environment.

Rock Picking

Rocks must be removed from trench bed if they are larger than 6 inches in diameter. When rocky conditions exist, other protective measures will need to be taken. Never drag pipe on top of rocky soil.

97

OMS

16.0 Project Sign-off

Final Inspection

When a project is completed, all departments within OMS are required to sign the final inspection form. The intent behind this form is to ensure that all documentation including pictures, test records, forms, and billing information are in OMS’ possession.

Reference Final Inspection Form – [OMS 1019]

98

NOTES

99

OMS

NOTES