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Archive for the ‘Offshore Energy – General’ Category

Aqueos 2020 external (ROV) inspection:

The 16” oil pipeline was found to be in good condition with no visible damage or anomalies.
One (1) CP test point that was installed in 2014 was found to be displaced from its location on the pipeline (this was also noted in the 2018 survey), and no damage was noted at the location (Fix #101).

Aqueos inspection report, May 2020

Pipe‐to‐electrolyte potential values recorded were:
 ‐ 921 millivolts (mV) on the 6” gas pipeline
 ‐ 910 millivolts (mV) on the 10” water pipeline
 ‐ 963 millivolts (mV) on the 10” gross fluids pipeline
 ‐ 906 millivolts (mV) on the 16” oil pipeline

As the NACE Standard SP0169‐2013 “Control of External Corrosion on Underground or Submerged Metallic Pipelines” criterion is ‐800 mV, all readings indicate that Cathodic Potential is within specifications.

Aqueos inspection report, May 2020

Metal loss data from Baker Hughes internal inspection (12/2019):

Depth of Metal LossExternal AnomaliesInternal Anomalies
30+%00
20-29%10
10-19%00
total10
Baker Hughes In-line Inspection Report, 12/30/2019

The metal loss findings are consistent with those reported in a previous internal inspection (Baker Hughes, 11/2017).

BSEE has general authority to require pipeline inspections under 30 CFR 250.1005. BSEE, the State Lands Commission, and the operator appear to have implemented an effective inspection program for the Beta Unit.

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Establishing an OSHA rule takes an average of 7 years, and the process has ranged from 15 months to 19 years between 1981 and 2010, the Government Accountability Office (GAO) reported to Congress in 2012

EHS Daily Advisor

OSHA’s long rule promulgation timeframes are actually quite typical for US regulatory agencies. In some cases, employees work on a single rule for most of their careers! On the plus side, the rigorous internal and public review processes help prevent arbitrary and capricious actions by regulators. However, the long promulgation process often results in regulations that are outdated before they are published. As a result, the entire process repeats and you have a regulatory “do loop.”

To avoid the daunting rulemaking process, regulators often resort to issuing notices, letters, or conditions of approval that accomplish some of their objectives. However, these actions are not always consistent with the rule promulgation requirements of the Administrative Procedures Act and other directives, and are less likely to survive legal challenges.

The optimal approach is for the regulator to establish clear objectives for the operating companies and a schedule for achieving those objectives. This approach was demonstrated following the 2005 hurricane season (Katrina and Rita) when numerous mooring system and other stationkeeping issues were identified. In a face-to-face meeting, Department of the Interior Secretary Gale Norton outlined her concerns and informed offshore operators that there would be no drilling from moored MODUs or jackups during hurricane season until the issues identified during Hurricanes Katrina and Rita were addressed.

The collaborative effort that followed was a resounding success. In addition to addressing station keeping concerns, a comprehensive list of hurricane issues was developed. Industry and government then worked together to assess mitigations and develop new standards and procedures. The essential MODU standards were completed before the 2006 hurricane season, and all of the related concerns were effectively addressed prior to the 2009 hurricane season. Had the government elected to promulgate regulations to address all of these issues, much of this work would have never been completed.

 

 

 

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Industry environment plans

Good read for you inspection and regulatory policy nerds. (I know you’re out there! 😃). The draft policy looks very good at first glance.

If (like me) you can’t help yourself, here is the link for providing feedback.

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Surfers leave the water after lifeguards enforce the closure of the ocean in Huntington Beach, Calif., Sunday, Oct. 10, 2021. The water has been closed to surfing and swimming for a week since an offshore oil pipeline leaked crude into the water off the coast of Orange County. (AP Photo/Amy Taxin)
AP Photo/Amy Taxin

Huntington Beach reopened:

Matt Harty, a 61-year-old retired construction supervisor from the nearby community of Seal Beach, said he was glad to return to the waves in Huntington Beach with other early morning surfers. He said he’s seen oil spills before and this one didn’t seem that bad, and in fact, the beach looks great.

“This is the cleanest I’ve seen the beach in years, right, because there’s been nobody here for a week,” Harty said. “I think they cleaned it up really well.”

AP 10/11

While the size of the spill isn’t known, the Coast Guard on Thursday slightly revised the parameters of the estimates to at least about 25,000 gallons (95,000 liters) and no more than 132,000 gallons (500,000 liters).

AP 10/9

Comment: Including a lower estimate that is 80% less than the initial estimate is hardly a slight revision, especially when this lower limit is based on an assessment of pipeline data.

So far the impact on wildlife has been minimal – 10 dead birds and another 25 recovered alive and treated – but environmentalists caution the long-term impacts could be much greater.

AP 10/9

Comment: One gets the sense that some anti-production activists are disappointed that the spill is not the environmental disaster needed to end oil and gas production in U.S. offshore waters, that the pipeline operator is (at most) only partially responsible, and that the primary regulators have been doing their job despite outdated regulations and jurisdictional uncertainty.

So far, two proposed class-action lawsuits have been filed on behalf of a disc jockey who runs beachfront events in Huntington Beach and a surf school that operates in the city known as “Surf City USA.”

ABC News

No comment 😃

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As we have been suggesting for several days, the initial spill estimate was too conservative (high) and assumed near total losses from the pipeline. The Coast Guard has now established a “minimum” estimate which is identical to the spill volume cited in footnote 2 of the PHMSA Order. This estimate was presumably determined after a review of meter data.

Coast Guard Capt. Rebecca Ore said at a media briefing that officials “have assessed and verified pipeline data, and made a determination that the minimum amount of crude oil released from that pipeline is 588 barrels of oil,” which equals about 24,696 gallons.

OC Register

The Coast Guard is not backing off the original estimate entirely hedging that “it’s still possible the leak is of roughly the size that’s been reported.” Meanwhile, the mayor of Huntington Beach has expressed some optimism:

Asked whether the lower estimate of oil released could mean beaches reopen sooner, Huntington Beach Mayor Kim Carr said she was “cautiously optimistic that it will be sooner than later.”

OC Register

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This is a very good article with thoughtful, well informed input:.

“My experience suggests this would be a darned hard leak to remotely determine quickly,” said Richard Kuprewicz, a private pipeline accident investigator and consultant. “An opening of this type, on a 17-mile-long (27-kilometer) underwater pipe is very hard to spot by remote indications. These crack-type releases are lower rate and can go for quite a while.”

Jonathan Stewart, a professor of civil and environmental engineering at the University of California, Los Angeles, said he was surprised the damage wasn’t more severe given how far the pipe was moved.

“My first reaction when I heard that it is displaced so far was that it’s remarkable that it’s even intact at all,” Stewart said.

The type of crack seen in the Coast Guard video is big enough to allow some oil to escape to potentially trigger the low pressure alarm, Kuprewicz said. But because the pipeline was operating under relatively low pressure, the control room operator may have simply dismissed the alarm because the pressure was not very high to begin, he said.

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IRVING, Texas – ExxonMobil increased its estimate of the discovered recoverable resource for the Stabroek Block offshore Guyana to approximately 10 billion oil-equivalent barrels

ExxonMobil
null

Where would you drill?

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BSEE data indicate that the operator of the Beta Unit facilities (Platforms Ellen, Elly, and Eureka, and the associated pipelines) had a good compliance and safety record.

  • Since 1/1/2015 Beta facilities were inspected 262 times and 49 Incidents of Non-Compliance (INCs) were issued.
  • The ratio of 0.19 INCs/inspection was better than the average for the Pacific Region (0.29 INCs/inspection).
  • No facility shut-in orders were issued during that period.
  • BSEE assesses civil penalties for violations that constitute a serious threat to safety or the environment. Since 1/1/2015, Beta has not been assessed any civil penalties.
  • BSEE incident data are badly out-of-date (no data posted for 2020 or 2021), but the most recent incidents at the Beta Unit facilities were 2 minor injuries (no lost time) in 2019, a small dryer fire in 2018, a minor injury (no lost time) in 2017, and a lost time injury (fall) in 2016.
  • BSEE’s oil spill data are even more out-of-date (no data posted since 2013) so it is difficult to assess Beta’s performance in that category.

With regard to the Huntington Beach pipeline spill, the evidence to date seems to confirm that the pipeline damage was caused by anchor dragging. Beta’s response to the PHMSA preliminary finding on their delayed response to the low pressure alarm (see previous post) will be of great interest. Alarm issues are not always straightforward. PHMSA’s 12-page order was issued on Monday (10/4), only 2 days after the spill was reported. The investigation will no doubt carefully consider the pressure and alarm history for the pipeline, data for 10/1 and 10/2, and input from those working in the control room.

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Per PHMSA:

  • At approximately 02:30 PDT (05:30 Eastern Daylight Time (EDT)) on October 2, 2021, Beta Offshore’s control room personnel received a low-pressure alarm on the San Pedro Bay Pipeline, indicating a possible failure.
  • Beta Offshore reported the San Pedro Bay Pipeline was shut down at approximately 06:01 PDT (09:01 EDT) on October 2, 2021—over three hours later.

Comment: Very interesting finding. Good to learn that the pipeline pressures were being monitored. Need to see the pressure history for the pipeline and hear from the crew before reaching any conclusions regarding the conduct of the operator.

Also note that PHMSA is estimating that the spill volume was 700 barrels, far less than the 3000+ bbl maximum estimate. Further, a footnote in the PHMSA letter reports an updated company estimate of 588 barrels. I’m assuming that the refined estimate was based on meter differentials. These lower estimates are more in line with the oil recover data that have been provided and the visual images of the slick.

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The evidence to date indicates that the leak was detected by visual observation of the oil slick. There are some reports that the slick and associated smell were evident on Friday night (10/1). The pipeline operator Amplify issued a statement advising that they first observed an oil sheen on Saturday morning (10/2), which is when the response was initiated. Nothing in Amplify’s statement suggests that a drop in pipeline pressure or a reduction in the flow rate at the onshore terminal was observed.

So, what do the regulations require with regard to leak detection? It depends whether the pipeline is regulated by the Department of Transportation (DOT) or the Department of the Interior (DOI/BSEE). This is how DOI authority is delineated:

DOI pipelines include:
(1) Producer-operated pipelines extending upstream (generally seaward) from each point on the OCS at which operating responsibility transfers from a producing operator to a transporting operator;
(2) Producer-operated pipelines extending upstream (generally seaward) of the last valve (including associated safety equipment) on the last production facility on the OCS that do not connect to a transporter-operated pipeline on the OCS before crossing into State waters;
(3) Producer-operated pipelines connecting production facilities on the OCS;
(4) Transporter-operated pipelines that DOI and DOT have agreed are to be regulated as DOI pipelines; and
(5) All OCS pipelines not subject to regulation under 49 CFR parts 192 and 195.

Unless provision (4) applies, the Elly to shore pipeline is either a producer or transporter-operated pipeline (depending on how the Amplify’s San Pedro Bay Pipeline Co. is classified) that falls under DOT jurisdiction. DOT leak detection requirements (49 CFR 195.134) are new as of 10/1/2019 and do not take effect until 10/1/2024. Unless DOI or similar leak detection requirements are being applied (by agreement, condition of approval, or some other administrative means), there are no such requirements for this pipeline.

Assuming the protection specified below for DOI pipelines is being required, why wasn’t the leak detected and production shut-in. This will be determined during the investigation, but the most probable explanation is that the pressure sensor was set too low, perhaps because the pipeline’s operating range is broad. With regard to a volumetric comparison system (250.1004 (5)), I don’t get the sense that such a capability was in place. If it was, the operator should be able to provide a good estimate of the amount of oil that was spilled (i.e. Elly output – onshore input – any oil recovered from the line after the leak was detected).

§ 250.1004 Safety equipment requirements for DOI pipelines.

(3) Departing pipelines receiving production from production facilities shall be protected by high- and low-pressure sensors (PSHL) to directly or indirectly shut in all production facilities. The PSHL shall be set not to exceed 15 percent above and below the normal operating pressure range. However, high pilots shall not be set above the pipeline’s MAOP.

(5) The Regional Supervisor may require that oil pipelines be equipped with a metering system to provide a continuous volumetric comparison between the input to the line at the structure(s) and the deliveries onshore. The system shall include an alarm system and shall be of adequate sensitivity to detect variations between input and discharge volumes. In lieu of the foregoing, a system capable of detecting leaks in the pipeline may be substituted with the approval of the Regional Supervisor.

One would hope that this major spill will lead to an independent review of the regulatory regime for offshore pipelines. Consideration should be given to designating a single regulator that is responsible and accountable for offshore pipeline safety (a joint authority approach might also merit consideration) and developing a single set of clear and consistent regulations.

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