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1

Agenda

Executive Committee on Standardization of Oilfield Equipment & Materials

J
anuary

2
1
, 200
8


12:00


1:00


Lunch

1:00



5
:00 PM


Committee Meeting

(All times US
Central
Standard Time)


Renaissance Worthington Hotel

Ft. Worth, Texas


Conference Call
Information

Toll Free:
1
-
866
-
443
-
0059

T
oll
N
umber
:

770
-
765
-
9147

C
onference
Call
C
ode
: 2026828159


Charlie Williams, Chairman



1.
Welcome/Meeting Opening






C. Williams


The meeting will open with a welcome and introductions as necessary.

The J
une 25,
2007 meeting minutes will be reviewed, see Attachment 1.


Action:

Approve Agenda

and previous meeting minutes
.


2.
General Committee on Special Program
and Upstream Committee
Update

C. Williams


C. Will
iams will give an update o
n

the
August 15
th

General
Committee on Special
Programs Committee and the
October 16
th

Upstream Committee Meeting
meeting
s, see
Attachments 2 and 3.


3
. 200
8

Budget Planning


D. Miller
will review the
status of the
2007
budget and the proposed 2008 budget, see
Attachment
4
.


4. Re
port on RP6 HP Project


E. Shanks will report on the “Equipment Rated Greater than 15 KSI” project.


5
. SC Chairs Reports


SC Chairs are asked to report on any subcommittee concerns.




2

6
. ECS
and Subcommittee
Officers


C. Williams will discuss ECS
and Subc
ommittee
officer rotation.


7
.
Future
Meeting
s


The next ECS meeting is
scheduled to take place during the
2008
Exploration &
Production Standards Conference on Oilfield Equipment and Materials

is scheduled for
June 23
-
27 in Calgary, Alberta, Canada.


The
2009
Exploration & Production

Standards Winter Meeting i
s planned for San
Antonio, Texas, dates and venue under consideration.


8
.
Adjournment



Reviewed by API

Office of General Counsel



3

Attachment 1


Draft Minutes

Executive Committee on Standardization
of Oilfield Equipment & Materials

June 25, 2007


Hyatt Regency Embarcadero Hotel

Bayview B Room

San Francesco, California


Charlie Williams, Chairman


1. Welcome/Meeting Opening






C. Williams


C. Williams opened the meeting welcoming the attendees and a
sking for self
introductions, see attached attendance sheet. It was moved
-
seconded
-
and
-
passed
(MSP’d) to approve the draft January 23, 2007 meeting minutes as distributed.


2. Upstream and General Committee on Special Program Update


C. Williams


C. Willi
ams gave an update of the May 18
th

General Committee on Special Programs
meeting and the June 15
th

Upstream Committee Meeting.


3. Report of the ECS Reorganization Ad Hoc Group


A. Radford and members of the Ad Hoc Group (C.
Williams, A. Freeman, and G. De
vlin
)
reported on the activities of the Reorganization Ad Hoc Group, see Attachment 2. After
discussion, it was MSP’d to approve the staff recommendations to:




Overhaul SC16 and
work to i
ncrease SC8 participation



Consider formation of an Operator/Drilling

Contractor led Oversight
Group



Expand
the
Scope of SC19



Need to consider industry commitment



Identify Contractors to maintain
the
Tank Standards



Identify Contractor to maintain
the
Mooring Hardware Standards


The Ad Hoc Group will canvass the affected sub
committees and present an
implementation plan at the next ECS meeting.


4. Report on RP6 HP Project


E. Shanks reported on the “Equipment Rated Greater than 15 KSI” project.


5. 2007 Budget Planning



4

A. Radford reviewed the status of the 2007 budget and t
he proposed 2008 budget.


6. API Marking Requirements Guidance


D. Miller reviewed the draft API product marking guidance for inclusion in the national
adoption of ISO standards. After discussion, the draft marking guidance was approved
with revisions and

API staff was asked to address this issue in the US National Adoption
Template. In this revised marking section, due to confusion related to identical and
modified national adoptions not specifically addressing additional marking options is
preferred but

the marking section was modified during the meeting, see attached.



7. SC Chairs Reports


The SC Chairs in attendance reported on subcommittee issues and concerns.


8. ECS and Subcommittee Officers


C. Williams discuss ECS and Subcommittee officer rotat
ion, noting that the following SC
Chairs were rotating off at this meeting: Mike Payne, BP, SC5, George Huntoon, BP,
SC6 and Marty Smith, ExxonMobil, SC13. Each were recognized with a outgoing
chair’s “Half
-
Gavel” Plaque, and all SC Chairs were encourage
d to consider succession
planning and appoint vice chairs so as to follow the S1 guidance of section 6.1.3.1
regarding three
-
year terms.


9. Future Meetings


The next ECS meeting is scheduled for the week of January 23
-
27, 2008, in conjunction
with the
Exp
loration & Production

Standards Winter Meeting, Fort Worth, Texas, hotel
contract in progress.


The 2008
Exploration & Production Standards Conference on Oilfield Equipment and
Materials

is scheduled for June 23
-
27 in Calgary, Alberta, Canada.


The 2009
Ex
ploration & Production

Standards Winter Meeting is planned for San
Antonio, Texas, dates and venue under consideration.


The following future locations were recommended:


2009
Exploration & Production Standards Conference on Oilfield Equipment and
Material
s



Denver, Colorado, dates and location TBD


2010 Exploration & Production Standards Winter Meeting


Austin/Dallas/New
Orleans/San Antonio, dates and location TBD


2010
Exploration & Production Standards Conference on Oilfield Equipment and
Materials



J
uly 28
-
July 2, Hyatt Regency Washington on Capitol Hill


5


2011 Exploration & Production Standards Winter Meeting


Austin/Dallas/New
Orleans/San Antonio, dates and location TBD


2011
Exploration & Production Standards Conference on Oilfield Equipment and
Ma
terials



San Francisco, California, dates and location TBD


10. Adjournment


The meeting was adjourned at 5:45 PM.


Secretary’s note: The NACE/API E&P Liaison Report is included as Attachment 2.



Reviewed by API Office of General Counsel



ECS June 25,

2007 Meeting Minutes Attachment 1


US National Adoptions

Policy Guidance for Marking Requirements


Current
l
anguage in
Guide for the National Adoption of ISO Standards as API/American National
Standards:


5.
4

Marking Requirements


If an ISO standard cont
ains requirements that the ISO standard designation be marked
on the product, these marking requirements shall be modified during the national
adoption process by replacing the ISO standard designation with the API standard
designation. This modification
is to be considered editorial and will not result in the
national adoption becoming a Modified (MOD) National Adoption.


ISO standards should not have any requirements related to the marking of the API
product specification or API Monogram.


Proposed new l
anguage:


5.4

Marking Requirements


5.4.1

Preferred Method [
same as existing language shown above
]

If an ISO standard contains requirements that the ISO standard designation be marked
on the product, these marking requirements shall be modified during the national
a
doption process by replacing the ISO standard designation with the API standard
designation. This modification is to be considered editorial and will not result in the
national adoption becoming a Modified (MOD) National Adoption.


ISO standards should no
t have any requirements related to the marking of the API
product specification or API Monogram.


5.4.2

Alternative Method


6

If the consensus group that is balloting the US National Adoption needs to deviate from
the preferred method described in 5.4.1 to obtain c
onsensus, the following guidance shall
be followed:



Language concerning the marking of technically equivalent standard
designations that also meet the US National Adoption requirements is acceptable
provided that the language in the US National Adoption do
es not make reference
to a specific standard.


ECS June 25, 2007 Meeting Minutes Attachment 2


NACE / API E&P LIAISON REPORT
--

JUNE 2006



NACE MR0175/ISO 15156,

"Petroleum and natural gas industries

Materials for use in H
2
S
-
containing environments in oi
l and gas production."



ISO
has published four Technical Corrigenda for the parts of NACE MR0175/ISO 15156
:

Technical Corrigendum 1


Part 1

Technical Corrigendum 1


Part 2

Technical Corrigendum 1


Part 3

Technical Corrigendum 2


Part 3


These changes

are the results of 15 ballot items that were passed by the Maintenance Panel and
NACE TG 299 (oversight committee) in 2004 and 2005. One of them simply removes trade
names from tables and uses only UNS numbers instead, but some of the others involve
sign
ificant technical changes. Technical Corrigendum 2 for Part 3 is 18 pages long and includes
many tables. ISO chooses to publish these as technical corridenda and wait until the 5
-
year
revision to include them in the main text. At the time of the 5
-
year
revision, they will also have to
be voted on by the member bodies of ISO/TC 67, but hopefully there won’t be any problems.



The corridenda are downloadable free for NACE members from the NACE Web site, and also
downloadable free for anyone from the ISO Li
velink Web site.


The Maintenance Panel handled 31 technical inquiries during 2005 (with 3 still outstanding) and
has received 9 so far in 2006, with 5 still outstanding. Inquiries and answers completed as of
March 1, 2006, with 5 still outstanding. Inq
uiries and answers completed as of March 1, 2006,
are posted on the ISO Web site:

www.iso.org/iso15156maintenance
.



Technical Publications Released Since June 2005:


---

New Standards Related to Produ
ction and Pipelines


RP0205
-
2005

“Recommended Practice for the Design, Fabrication, and Inspection of Tanks for the
Storage of Petroleum Refining Alkylation Unit Spent Sulfuric Acid at Ambient Temperatures”



---

Standards and Reports
Related to Producti
on and Pipelines

Revised or Reaffirmed Since June
2005



TM0177
-
2005

“Laboratory Testing of Metals for Resistance to Sulfide Stress Cracking and Stress
Corrosion Cracking in H2S Environments”


TM0399
-
2005

“Standard Test Method for Phosphonate in Brine”



7

T
M0185
-
2006

“Evaluation of Internal Plastic Coatings for Corrosion Control of Tubular Goods by
Autoclave Testing”


If there are questions or more information is desired please contact NACE Technical Activities Department
at: 281/228
-
6221 or email
Linda.Goldberg@mail.nace.org


or contact your liaison representative at:
214/348
-
7692 or email:
hbyars@swbell.net
.


Harry G Byars, NACE/API E&P Liaison Representative, June 07, 2006


8

Attachment 2

API GENERAL COMMITTEE ON SPECIAL PROGRAMS

Report to the Program and Budget Work Group



The API General Committee on Special Programs (GCSP) met by conference call
Wednesday, A
ugust 15, to review API’s 2008 Special Programs proposals, and to make
recommendations to the Program and Budget Work Group (PBWG).


Participating members: John Baxter (BP), Wendy Dominguez (Shell Global Solutions
(US) Inc.), Brian Harney (ExxonMobil Refi
ning & Supply Company), Steve Irving
(Enbridge Pipelines Incorporated, Del Major (Shell Oil
-
Motiva Enterprises), Neil
Naiman (Marathon Petroleum Company), Beau Urech (Lone Star Steel Company),
Charlie Williams
-
Chair (Shell International Exploration & Produ
ction, Inc.).


The GCSP reviewed the 2008 Special Programs

Self
-
Supporting and Special
Solicitation Programs

budget requests in detail. All program plans were endorsed and
the GCSP recommended that the budget requests be accepted. Additionally, two items
were highlighted:




The API St
atistics Program is facing an increased risk as merger activity has
increased and as the program’s flagship product

the Weekly Statistical Bulletin
(WSB)

loses visibility. Recently, the
Oil & Gas Journal

(
OGJ
) published an
anno
uncement that it will discontinue publishing API’s data and will rely exclusively
on EIA’s data. API data has already lost some visibility in the media, and this change
represents a further and significant loss. API staff are currently preparing a
“marketi
ng plan” with the goal of reversing this trend and stave off other longer term
issues. The plan will be presented for approval as necessary.




The GCSP is concerned that the Center for Liquefied Natural Gas (CLNG) may make
a decision to separate from API an
d form an independent organization without other
API committees and member companies providing the necessary input. It is
recommended that a decision such as this be fully vetted beyond the CLNG
Management Committee before any action is taken.






9

Attachm
ent
3


For Information API Upstream Committee


October 16, 2007


HURRICANE RESPONSE

(C
OHR)

AND API STANDARDS UPDATE


Issue:

Update on API Hurricane Response and API Standards Update.


Background:

The 2004
-
2005 hurricane seasons in the Gulf of Mexico had an
unprecedented impact on the offshore floating and fixed facilities and the connectin
g
pipelines system. As a result of the extreme wind and wave conditions arising out of the
Category V hurricanes, more than 190 platforms were damaged or destroyed and more
that 30 semi submersibles and jackup rigs either lost station or were destroyed.


Although the vast majority of facilities survived the hurricanes with minimal damage, the
industry believed it was necessary to perform an extensive review of existing industry
design practices to determine if they were adequate to ensure that offshore fac
ilities could
survive similar storms in the future. The initiative was being coordinated by a special
Hurricane Evaluation and Assessment Team (HEAT) formed by API’s Subcommittee on
Offshore Structures.


As a result of this extensive review, API publish
ed three interim documents for the 2006
hurricane season covering the operation and construction of both mobile offshore drilling
units (MODUs) and fixed and floating production platforms.
The industry also has
initiated a study of

wind, wave and current
c
onditions
(“metocean” data)

in the Gulf of
Mexico to determine if additional changes

to existing standards and recommended
practices were necessary.


Discussion:

Hurricane preparedness continues to be an important issue for the Upstream
Committee and API i
n 2007.

HEAT continues to analyze and apply updated metocean
data to further fine
-
tune API’s
standards
.
Since the March 2007 update to the Upstream
Committee, a number of activities have been underway on Hurricane Response. For
example, API updated its MO
DU mooring recommended practice and issued a second
edition that addresses the latest metocean criteria; three interim bulletins were published
addressing metocean criteria, assessment of existing structures, and new platform design.
Workshops were held in

July to roll out the interim documents, followed by a webcast
conference that was organized by the HEAT and Offshore Magazine. The MMS has
issued NTLs that reference these interim bulletins.


Work is currently underway to incorporate the interim bulletin

information into the
existing group of API offshore facility design standards with completion targeted for
2008.


The Executive Committee on Standardization of Oilfield Equipment and Materials has
also been advancing its overall 2007 standards program, w
ith twelve new or revised

10

standards published to date with three of those being first edition standards introducing
new equipment and recommended practices for the industry. Another four standards are
approved and in editing and should be published by yea
r’s end.


Action:

No action required at this tim
e
.



11

Attachment 4


API ECS 2008 Approved Budget




ECS Budget


The ECS budget for research and contracted experts is approved by the Upstream
Committee for API dues funds and the GCSP for API non
-
dues funds
.


The approved 2008 budget includes:




$250,000 from the Upstream Committee for hurricane response
and readiness standards, with $15
5
,000 under contract for four
projects and the remaining
$95,000
available for HPHT and other
work
.



Contracts already underway
include:



$50,000 for Ward
-
OTRC for Dynamic Loading of Drill Rig
Tie
-
downs on floating structures



$30,000 for Mercier
-
OTRC for Non
-
Linear Short
-
crested
Wave Loads on Fixed Platforms and Decks



$25,000 for Puksar
-
Energo for Mean Yield Strength of
GOM Fixed Pl
atforms (2A, 2SIM)



$50,000 for Gilbert
-
OTRC for Platform Jacket Foundation
Strength (2A)




$
285
,000 from the General Committee on Special Programs for
standards research and contracted experts, with $2
10
,000 for
contracted experts and $75,000 for three spec
ific research projects



Specific
research
projects in
clude
:



$30,000 for RP 5A3 Update


SC5



$10,000 for Research on 6A/17D Materials


SC6/17



$35,000 for HPHT Fluid Filter Research


SC13




$55,000 for two programs in support of the API monogram
program
:



$30
,000 for NIST Gauge Program


SC45/7



$25,000 for 10A Laboratory Testing


SC10