Pipeline Design

PIPELINE DESIGN

Cross Country Petroleum Pipelines Pipeline Design


PIPELINE DESIGN


LEGISLATION & REGULATIONS

_ The Petroleum Act, 1934
_ The Petroleum Rules, 2002
_ Petroleum and Mineral Pipelines (Acquisition of Right of User in Land) Act,
1962 & Amendment Act, 1977
_ Indian Forest Act, 1927 And Indian Forest (Conservation) Act, 1980
_ Guidelines for laying Petroleum Product Pipelines (Gazette Notification no. P-
20012/5/99-PP dated 20.11.02)
_ Supplementary guidelines for laying Petroleum Product Pipelines (Gazette
Notification no. P-20012/5/99-PP/OR-II dated 26.10.04)


1) THE PETROLEUM ACT, 1934
The Petroleum Act, 1934 consolidates and amends the law relating to import,
transport, storage, production, refining and blending of Petroleum products.


2) THE PETROLEUM RULES, 2002
The Petroleum Rules, 1976 were replaced by Petroleum Rules, 2002 with effect
from 13th march, 2002. Part V of Petroleum Rules, 2002 deals in Transportation
of Petroleum Products by Pipelines. The salient details of Part V of Petroleum
rules are given below:

Right of Way to be acquired - No pipeline and installation connected with a
pipeline, shall be constructed without acquiring the necessary land, leasements
and right for the construction.

Approval of the design and route of the pipeline - No pipeline shall be laid
without the prior written approval of the Chief Controller of the route of the
pipeline, and of the design, construction and working thereof.

Design of pipeline and attachments - The pipeline shall be constructed of suitable
steel which is safe for the conditions under which it is to be used. The pipeline
and its components shall be designed and constructed in accordance with a code
recognized by the Chief Controller or OISD Standard 141 and shall be capable of
withstanding a pressure which shall not be less than the maximum working
pressure thereof plus an allowance for surge pressure, as anticipated. Provision
shall be made for thermal expansion or contraction of the pipeline.

The pipeline shall be protected by a casing of steel pipe or by increasing the
thickness of its wall to prevent damage to the pipeline from usual external
conditions which may be encountered in railway crossings, road crossings, river
or water course crossings, bridges, long self supported spans, unstable ground,
vibrations, weight of special attachments or thermal forces.

By-pass relief valves, pressure limiting stations or automatic shut down
equipment of approved design shall be provided in the pipe line.

Isolation valves shall be installed at each of the following locations -
_ On the suction end and the discharge end of the pump station.
_ On each line entering or leaving the installation.
_ On each main line at locations along the pipeline system that will minimize
damage from accidental product discharge, as appropriate for the terrain in
open country or for the location near cities or other populated areas.
_ On each lateral take off from a trunk line.
_ On each side of a water crossing that is more than 30m wide from high water
mark to high-water mark.
_ On each side of a reservoir holding water for human consumption.
Laying of Pipe Line - Pipeline shall be laid in the most favorable route, avoiding
known obstructions and areas in which unusual external conditions prevail.

Pipeline shall be laid below the ground level except where laying above the
ground level is desirable for topographical, economic or other special reasons.

Where an underground Pipeline has to cross any existing underground water or
gas line, cable, drain or other services, the pipeline shall be laid at least thirty
centimeters below such services. The number of bends in the pipeline shall be
kept to the minimum.

The route of underground sections of a pipeline shall be indicated by markers and
not less than two such markers shall be visible from any point along the route.


Protection against corrosion - The pipeline shall be protected against corrosion by
suitable coating strapping and where necessary by cathodic protection.

Hydrostatic testing of pipeline – Before transporting petroleum for the first time,
each pipeline or completed sections thereof shall be filled with water and the
pressure in the line or section, as the case may be raised to 1.1 times the design
internal pressure and maintained for a period of atleast 24 hours or as per
procedure laid down in the relevant pipelines design code recognized by Chief
Controller. A pipeline or a section thereof showing any significant drop of
pressure during the period of testing shall not be used for transporting petroleum
until necessary repairs have been carried out and satisfactory retest done.


The test specified above shall be carried out atleast once in every 12 months in
each completed pipeline section which crosses an area where there is danger of
water pollution by any leakage. However, the provision shall not apply to crosscountry
pipelines, for which new technologies are available.

Shut down of pipeline - Except when shut down for maintenance work, a pipeline
when not in operation shall be shut down under pressure and a careful record
made of the pressure during the shut down period. Any significant drop in
pressure shall be deemed to render the pipeline unfit for transport of petroleum
until it is repaired and tested.

Patrolling of pipeline -
_ The whole of every pipeline shall be efficiently patrolled by the company
owning the pipeline.
_ Telegraph or telephone or radio communication facilities shall be provided at
frequent intervals along the pipeline.
Checking of gauges - Tank gauges or gauges at intermediate or booster pump
stations shall be checked atleast once a year.


Additions and alterations in the pipeline -
No addition or alteration to a pipeline shall be carried out without the previous
approval of Chief Controller in writing. Every person desirous of carrying out any
additions or alterations in any pipeline shall submit an application to the Chief
Controller. The Chief Controller shall, if he is satisfied, approve the proposed
additions or alterations subject to such conditions as he may deem fit.







Repair and maintenance of pipeline
- No maintenance or repair involving cutting
or rewelding of any pipeline shall be carried out except under following
conditions, namely:

(i) An experienced engineer shall inspect the section requiring maintenance or
repair before the work is undertaken and issue a written permit specifying
therein the precautions to be observed and the procedure to be followed for
carrying out the work. The permit so issued shall be preserved by the owner
of the pipeline for a period of six months.

(ii) All work involving cutting or welding shall be carried out by an experienced
person.

(iii) The section of the pipeline shall be isolated and drained before starting
repairs or maintenance.

(iv) Only mechanical cutters shall be used for cutting the pipeline or any
connection thereof unless the section of the pipeline and its connections
have been purged with an inert gas.

(v) No hot work shall be carried out on any pipeline until the section thereof
requiring repair has been isolated drained and purged with inert gas or steam
or kept filled with water or until such section has been prepared in a manner
approved in writing by the experienced engineer.

(vi) The section of the pipeline in which repairs or maintenance work has been
carried out shall not be used for transporting petroleum until such sections
are replaced with hydrostatically pre tested sections and the repaired weld
joints pass the radiography test.

(vii) No section of any pipeline, and no valve fitted to it shall be separated until
an efficient electrical bond has been established between the parts to be so
separated which shall not be broken until the separated parts have been
rejoined.


Relaying or repairs to a pipeline in public interest - Where the Chief Controller is
of the opinion that it is in the interest of public safety to do so, he may, by a notice
in writing given to the owner of the pipeline, require such owner, to relay, renew
repair such pipeline in accordance with such requirements as may be specified in
such notice.

Power of inspection and examination - The Chief Controller or Controller may at
any time inspect and examine any pipeline.

Reports of fire or major leakage - The occurrence of any fire or major leakage in a
pipeline and connected facilities shall be reported immediately by the person for
the time being incharge of the pipeline to the nearest Magistrate or officer-in
charge of the nearest police station and to the Chief Controller by telephone/fax
and also by telegram at his telegraphic address, namely “Explosives Nagpur”.


3) PETROLEUM AND MINERAL PIPELINES (ACQUISITION OF RIGHT
OF USER IN LAND) ACT, 1962 & AMENDMENT ACT, 1977

The Petroleum and Mineral Pipelines (Acquisition of Right of User in Land) Act
(P&MP Act), 1962 provides for the acquisition of Right of User in land for laying
petroleum pipelines. Given below are the salient details of this Act:

Competent Authority: Competent Authority is defined as any person or authority
authorized by the Central Government, by notification in the Official Gazette, to
perform the functions of the Competent Authority under the P&MP Act.

Publication of notifications for acquisition - Section 3(1): Whenever it appears to
the Central Government that it is necessary in the public interest that for the
transport of petroleum or any mineral from one locality to another locality
pipelines may be laid by that Government or by any State Government or a
corporation and that for the purpose of laying such pipelines it is necessary to
acquire the right of user in any land under which such pipelines may be laid, it
may, by notification in the Official Gazette, declare its intention to acquire the
right of user therein.

Power to enter, survey etc.(Section 4): On the issue of 3(1) notification, it shall be
lawful for any person authorized by the Central Government or by the State
Government or the corporation which proposes to lay pipelines for transporting
petroleum or any mineral, and his servants and workmen –

a) To enter upon and survey and take levels of any land specified in the
notification.

To dig or bore into the subsoil.

c) To setout the intended line of work.

d) To mark such levels, boundaries & line by placing marks and cutting
trenches.

e) Where otherwise survey cannot be completed and levels taken and the
boundaries and lines marked, to cut down and clear away any part of
standing crop, fence or jungle; and

f) To do all other acts necessary to ascertain whether pipelines can be
laid under the land.

Hearing of Objections - Section 5(1): Any person interested in land may, within
21 days from the date of notification under sub-section (1) of section 3, object to
the lying of the pipelines under the land.

Objections shall be made to CA and order by CA shall be final.

Declaration of Acquisition of Right of User - Section 6 (1): Where no objections
under subsection of section 5 have been made to the CA within the period
specified therein or where the CA has disallowed the objections, CA shall submit
a report containing his recommendations and record of the proceedings to Central
Government and upon receipt of such report, the Central Government shall
declare, by notification in the Official Gazette, that the right of user in the land for
laying the pipeline should be acquired.

On publication of 6(1) notification, the right of user shall vest in the Central
Government free from all encumbrances. Central Government may direct by
order in writing that the right of user instead of vesting in Central Government,
vest in the State Government or the corporation proposing to lay the pipelines,
free from all encumbrances.

Central Government or State Government or corporation to lay pipelines -
Section 7: It is lawful for the Central Government or State Government or
corporation to lay pipelines provided that no pipeline shall be laid under –

a) any land which was used for residential purposes immediately before the
date of 3(1) notification.

any land on which a permanent structure is there.

c) any land which is appurtenant to a dwelling house.

d) any land at a depth which is less than one metre from the surface.


Power to enter land for maintaining, examining, repairing, alerting inspection etc.
– Section 8

Compensation – Section 10: For any damage, loss or injury sustained by any
person interested in the land under which the pipeline is proposed to be, or is
being, or has been laid, by reason of

i) the removal of trees or standing crops

ii) the temporary severance of land under which the pipeline has been laid from
other lands belonging to or in occupation of such person

iii) any injury to any other property or the earnings of such person
the Central Government, State Government or the Corporation, as the case may
be, shall be liable to pay compensation to such person for such damage, loss or
injury, the amount of which shall be determined by the CA. In case the amount of
compensation is not acceptable to either of the parties, the amount of
compensation shall be determined by the District Judge.

No account shall be taken of any structure or other improvement made in the land
after the date of the notification under section 3(1) in determining the
compensation.

A compensation calculated by the CA at 10% of the market value of that land on
the date of 3(1) notification shall also be paid to the affected land owner.

Penalty – Section 15 (1): Whoever willfully obstructs any person in doing any of
the act authorized by P&MP act or willfully fills up, destroys, damages or
displaces any trench or mark shall be punishable with imprisonment which may
extend to six months or fine or with both.

(2) Whoever willfully removes, displaces, damages or destroys any pipeline laid
under section 7, shall be punishable with rigorous imprisonment for a term which
shall not be less than one year, but which may extend to 3 years and shall also be
liable to fine.


4) INDIAN FOREST ACT, 1927 AND INDIAN FOREST (CONSERVATION)
ACT, 1980

This act is applicable to the Pipeline ROU passing through reserved forest,
protected forest or any area recorded as forest in the government records.


5) GUIDELINES FOR LAYING PETROLEUM PRODUCT PIPELINES
(GAZETTE NOTIFICATION NO. P-20012/5/99-PP DATED 20.11.02)

Categorization of Pipelines

1. The petroleum product pipelines would be categorized as follows:

(i) Pipelines originating from refineries, whether coastal or inland unto a
distance of around 300 kilometers from the refinery.


(ii) Pipelines dedicated for supplying product to particular consumer,
originating either from a refinery or from oil company's terminal and,

(iii) Pipelines originating from refineries exceeding 300 Km in length and
pipelines originating from ports, other than those specified in (i) and (ii)
above.

Ownership and access
2. Right of User (RoU) in land for laying pipelines under the Petroleum
Pipelines (Acquisition of right of User in Land) Act, 1962 for the pipelines
falling under category specified in sub-clauses (i) and (ii) of Clause 1, will be
granted in favor of applicant company treating such pipelines as captive
pipelines for exclusive use by the proposer company.

3. For grant of ROU in land for laying pipelines under the Petroleum Pipelines
(Acquisition of right of User in Land) Act 1962 for the pipelines falling under
the category specified in sub-clause (iii) of clause 1, the following procedure
will be followed:

3.1 A proposal for laying common usage product pipeline could originate from
any single interested party or a joint-venture (herein after referred to as
proposer).

3.2 The Ministry of Petroleum and Natural Gas shall publicize in such manner as
the Ministry may decide, the proposal inviting expression of interest, within a
period of three months from anyone interested in the proposal. In case any
company is interested in taking any capacity in the pipeline, it could express
its interest and enter into “take of pay” or any other mutually agreeable
contract with the proposer. The pipeline size and design would be finalized by
the proposer after taking into consideration all such requests.

3.3 In case, no expression of interest is received from any industry player within a
period of three months of publicizing the proposal, the proposer would be at
liberty to go ahead with the project.

3.4 The designed pipeline capacity would be atleast 25% more than the capacity
requirement of the proposer and of those who take capacity under clause 3.2
as may be decided by the Ministry of Petroleum and Natural Gas.

3.5 The ownership of the pipeline would be that of the proposer or as may be
decided by the proposer, irrespective of whether the other industry player(s)
take pipeline capacity or not.

3.6 The excess capacity, as mentioned in clause 3.4, would be available for use by
anyone other than the owner and those taking capacity under clause 3.2 at the
approved tariff as per the provisions under clause 4, on “common carrier”
basis i.e. capacity would be made available to anyone interested and offering
to pay the tariff. In case, such demand exceeds this excess capacity, the
allocation of the excess capacity would be prorated amongst the interested
users other than the owner and those taking capacity under clause 3.2.

Tariff

4. Tariff for the pipelines commissioned after the date of publication of this
notification in the Official Gazette and falling in the category specified in subclause
(iii) of clause 1, will be subject to the control orders or the regulations
that may be issued by the Government or the statutory authority in this behalf
under any law for the time being in force.

Conditions under ROU acquisition

5. The ROU acquisition under the Petroleum Pipelines (Acquisition of Right of
User in Land) Act, 1962 will be subject to such conditions as may be deemed
fit by the Government in public interest. Such conditions may inter alia
include the following:

5.1 Sharing of portions of acquired ROU falling in forest areas, wild life/marine
sanctuaries/parks, prohibited/restricted areas etc with the other interested
parties.

5.2 In case the route alignment of the Pipeline crosses another pipeline
route/alignment, the points of crossing would be decided by mutual agreement
between the parties failing which the matter will be referred to the Ministry of
Petroleum and Natural Gas whose decision will be final.


6) SUPPLEMENTARY GUIDELINES FOR LAYING PETROLEUM
PRODUCT PIPELINES (GAZETTE NOTIFICATION NO. P-20012/5/99-
PP/OR-II DATED 26.10.04)

The Supplementary guidelines are applicable for pipelines falling under category
– 1(iii) of Guidelines for laying Petroleum Product Pipelines.
Common Carrier Capacity

1. The “Common carrier” capacity to be built under para 3.4 of the Guidelines
for Laying Petroleum Product Pipelines notification F.No.P-20012/5/99-PP
dated 20.11.2002 provides the right of first use to any party other than the
owner / proposer, throughout the life of the pipeline.

2. In the event that capacity is available out of the common carrier capacity, the
owner / proposer may utilize the same with the stipulation that should any
other party seek transportation through common carrier capacity, the owner /
proposer would vacate and make available common carrier capacity up to the
designated level immediately.

Time Frame for Completion of Pipeline

3. Pipeline project will be required to be commissioned with in the time period
provided in the sanction / approval letter, which shall have an outer limit of 36
months from the date of sanction / approval.

Bank Guarantee

4. The owner / proposer will be required to furnish an irrevocable bank
guarantee of an amount equivalent to 2% of the project outlay or Rs. 2 lakhs
per kilometer of pipeline proposed, whichever is higher, as a guarantee for
commissioning the pipeline project as per the approved time schedule. The
irrevocable bank guarantee shall be encashable any time after 36 months from
the date of the sanction / approval and will be dischargeable only on advice of
the Government. If the completion of the project is delayed beyond 36 months
from the date of sanction / approval of the project, then the bank guarantee
may be invoked.

5. The ROU acquisition would be commenced after execution of Bank
Guarantee and its deposit with the Government.

6. The Bank Guarantee may be deposited within 30 days of issue of sanction
letter failing which sanction letter would stand withdrawn.

7. The Bank Guarantee will be discharged on commissioning of the pipeline
within the time period specified and satisfactory compliance of conditions
imposed through the sanction / approval letter.

Competent Authority for Acquiring ROU

8. Only serving Government Officers will be considered for working as
Competent Authority under the Petroleum and Minerals Pipelines
(Acquisition of Right of User in Land) Act, 1962.

Transfer of Ownership

9. Where a pipeline implementing company is a subsidiary company and has
been granted sanction / approval letter on the basis of its holding / parent
company’s balance sheet, permission of Ministry of Petroleum and Natural
Gas will be required to be obtained prior to any change in management
majority holding in such pipeline implementing subsidiary.
Eligibility of Players Seeking Capacity in a Pipeline Project

10. Any party may approach the proposer to seek capacity in a pipeline project for
which an EOI has been issued under Guidelines for Laying Petroleum Product
Pipelines Notification F.No.P-20012/5/99-PP dated 20.11.2002. Eligibility of
parties seeking capacity will not be limited on the grounds that the party,
seeking capacity is neither a refinery nor possessing any marketing rights.


LIST OF STATUTORY APPROVALS REQUIRED FOR A PIPELINE PROJECT

a) Environmental Clearance –

i) State Pollution Control Board’s (SPCB) Consent for Establishment

ii) Ministry Of Environment and Forest clearance (including CRZ & non
CRZ areas)

iii) State Forest Clearance for Reserve / Protected / State forest crossing
ROUs (upto 5 hectares in a state). Clearance from State Forest Department
in case of Social forest crossings specifically in case of such notified areas
along High way/ Local road networks

iv) Clearance from Regional Conservator of Forests for Reserve / Protected /
State forest crossing ROUs (From 5 to 20 hectares of forest areas in a
state). For more than 20 hectares, approval of Central Forest department is
required under MOEF

v) SPCB consent for operation before commissioning of the project

ROU approvals –

i) State Government’s deputation of in service Government officer (preferably
revenue officers) for notification as Competent Authority under Petroleum
& Mineral Pipeline (Right of Use Acquisition) Act., 1962

ii) MOP&NG’s notification of Competent Authority under PMP Act 1962

iii) MOP&NG’s notification of ROU under 3(1), 6(1) sections of PMP
Act,1962, CA’s conduction of Objection hearing under 5(1) section after
3(1) notification

iv) Approval of Zonal railways for railway crossings

v) Approval of State Panchayat, State R&Bs (PWD), NH authorities for
various road crossings


vi) Approval of Rivers/canals/Streams/Nalahs/Drains/ water body crossings
from respective State Irrigation Authorities

vii) Approval / Consent from other Utility owners like Telecom, Water/
Petroleum pipelines etc.

viii) Approval of District Magistrate for crossing of ROU in Government, lands

ix) Approval from Port Trust and other Govt. bodies where ever applicable for
restricted ROUs in their lands

c) Approvals from Central Departments -

i) CCOE Construction approvals for Pipeline alignment, Station / Terminal
layouts & approval for commissioning after project completion

ii) Approval for Fire Advisor, Ministry of Home

iii) Approval of Ministry of Finance for concessional Custom Duty

iv) Notification of entry ports for concessional duty imports

v) Approval from Ministry of Communication for HF/ VHF wireless frequency

vi) Approval of Central Electricity Authority for energizing HV/EHV electrical
installations


d) Approvals from State Departments -

i) Certificate of Registration from Regional Labor commissioner

ii) Construction approval from Director of Factories

iii) NOC from respective District Magistrates for all Stations/ Terminals

iv) Approval of plans from respective Municipal authorities

v) Approval of HT/LT Electrical Loads, DG set installation

vi) State Fire Service Dept.’s approval of plans and Fire officer’s approval
before commissioning




PIPELINE DESIGN CODES
OISD (Oil Industry Safety Directorate) Standards

1) OISD 138 Inspection of Onshore Pipelines

2) OISD 140 Inspection of Jetty Pipelines

3) OISD 141 Design & Construction of Hydrocarbon Pipelines

International Codes, Standards & Practice

1) DNV Rules for Submarine Pipeline Systems

2) ASME B 31.8 Gas Transportation and Distribution Piping Systems

3) ASME B 31.4 Pipeline transportation Systems for Liquid Hydrocarbons
and other liquids

4) API RP 1102 Recommended Practice for Rail And Highway Crossings

5) API 1104 Standard for Welding Pipeline and Related Facilities

6) API RP 1110 Recommended Practice for Pressure Testing of Liquid
Petroleum Pipelines

7) API RP 1111 Recommended Practice for Design, Construction,
Operation and Maintenance of Offshore Hydrocarbon
Pipelines

8) NACE MR 0175 Material Requirements- Sulphide Stress Cracking Resistant
Materials for Oil Field Equipment

9) IP 6 Pipeline Safety Code

10) OTHER


REFERENCES

Applicable Standards / Specifications Of ANSI / ASME,
API, NACE, MSS, BS and DIN

OISD : Oil Industry Safety Directorate
API : American Petroleum Institute
ASME : The American Society of Mechanical Engineers
ANSI : American National Standards Institute
NACE : The National Association of Corrosion Engineers
BS : British Standard
DNV : Det Norske Veritas
MSS : Manufacturers Standardization Society of Valve and Fittings Industry
AWS : American Welding Society
DIN : Deutsches Institute fur Normung
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