Introduction to The Augustus Group and RBI

1
Risk Based Inspection Plan
for MI Enhancement and
Optimization
A Cost Effective Solution for
Asset Preservation

The Augustus Group (TAG or Augustus)
Mission Statement
• Problem Solving
– Assist with Problem Definition and
Strategy for Solution
– Work with You as Part of Your Team
• Provide Project Management and
Engineering Consulting in our
Specialized Technologies

 Huntsman
Chemical
 BHP Refinery
 Aimvenca &
Sincor
 Jose Cryogenics
(PDVSA)
 ENGEN Refinery
 Altura Energy
 Marathon
Ashland
 HB Fuller
 Condea Vista
 Minh Foods
 ABB Lummus
 Global Santa Fe
 NCRA
 CVR Refining
 Aristech
Chemical
 AKZONobel
 NASA
 Chemical
Manufacturer’s
Association
 Electric Power
Research Institute
 BP Refining &
Chemicals
 BP Upstream
 Arco Chemicals
 Engen Refinery
 DSM CoPolymer
 Orion Refinery
 SK Chemical
 Yukong Refinery
 Eastman Chemical
Company
 Transworld Pipeline
 Williams Refining
 Products and
Industrial Projects
 Carghill Fertilizer
Services and Experience
 Industries
 Petroleum and Chemical Downstream
 Oil and Gas Upstream, on-shore and off-
shore
 Food and Pharmaceutical
 Nuclear and Fossil Power
 Waste Water Treatment
 Principle Services
 Risk-Based Inspection of Facilities,
Equipment, and Pipelines
 Tank and Pipe line Integrity Management
and Risk Analysis
 Incident Investigation &
Insurance/Litigation Support
 Metallurgy, Corrosion Engineering &
Fitness for Service
 Fire & Explosion Hazard Analysis and
Management
 Environmental Impact and Remediation
Studies and Plans
 Security Planning and Emergency
Response
 Audits, Seminars, and Training
 Regulatory Support

RBI & TA Planning, Petroleum and Chemical
Industry Examples on TAG’s Resume
 Risk Analysis of Oman to India $6B Deep-water
Pipeline, Circa 1994
 RBI Analysis of 650 Pressure Vessels, BHP Refinery,
Circa 1995
 About 30 RBI Implementations Worldwide, 1995 - Present
 Pre-TA Analysis of About 300 Pressure Vessels
Previously Not Inspected, 3 Mo. Prior to TA, $14M
Savings, Circa 2006
 Risk Based Bolting QC Program, Two Mo. Prior to TA,
$MM no Leak Startup, Circa 2006

Most Companies Have or/are Making the
Transition
NFPA Diamond
Conventional
MI Program
API 570 Piping
Classes:
 I – Highest potential
of immediate
emergency on leak
 II – Not included in
other classes,
majority of lines
 III – Flammable, but
do not significantly
vaporize on leak, and
not in high activity
area.

Most Companies Have or/are
Making the Transition
NFPA Diamond Discrimination
Engineering
Analysis
RBI
Expert
Opinion
High
Low
High
RCM
Risk Based Mechanical
Integrity Using FFS and
Advanced NDE When
Needed
Conventional
MI Program
API 570 Piping
Classes:
of immediate
emergency on leak
other classes,
majority of lines
area.

Most Companies Have or/are
Making the Transition
NFPA Diamond Discrimination
Engineering
Analysis
RBI
Expert
Opinion
High
Low
High
RCM
Consequence Ranking
ABCDE
1
2
3
4
5
ProbabilityRanking
HIGH
MED HIGH
MEDIUM
LOW
Risk Based Mechanical
Integrity Using FFS and
Advanced NDE When
Needed
Conventional
MI Program
API 570 Piping
Classes:
of immediate
emergency on leak
other classes,
majority of lines
area.

Risk Based Inspection (RBI) Provides
MI Program Definition
 Focuses Limited
Resources on High Risk
Items
 Substantially Reduces
Time & Money Spent
Compared to Traditional
Programs
 Recognized & Accepted as
Good Engineering Practice
RBI Approach
Conventional Approach

Why Do we Do It?
 Risk Based Inspection Planning For
 On-stream Inspections
 Optimization Of Outage or
Turnaround Scope
 Risk Based Inspection Planning For New
Design Prior To Construction And
Operations
 Application Of Risk Based Principals To
Management Of Degraded Equipment
 Risk Based Inspection of Orphaned
Buried Piping
 RBI/FFS of Bullet Tanks Suspected of
Caustic Cracking
Hazard
Screen
Risk
Benchmark
Inspection
Plans
Non-
Intrusive
Inspections
Opportunity
Inspections
Turnaround
Plan
Evergreen
Risk
Analysis
Turnaround
Inspections

Important Concepts
 Three Parameters Define Risk
 Scenario or what can go wrong
 Probability of the scenario occurring or POF
 Consequence if the scenario occurs or COF
 Risk = POF x COF (parameters are not absolutes)
 Inspections do not reduce risk, inspections:
 Improve our state of knowledge of the POF
 Provide information to manage potential damage that
could lead to failure
 Risk-Based Inspection is Simply the Application
of Engineering Intensity to the Inspection
Function

Scenario - Initiation of Event and
Probability of Failure
Damage
Mechanism
Initiates, P1
Damage
Arrests
Damage
Continues,
P2
Damage is
Detected
Damage is
not
Detected or
Arrested
Damage
Continues,
P3
Damage
does not
arrest
Pressure
Boundary
is
Breached
Stressor(s)
Active
Mitigating
Factors &/or
Self Limiting
Nature of
Mechanism
Initiating Events
Effectiveness
of Non-Destructive
Examination
Damage
Continues
to Failure
(1-f2) = probability
damage will
be detected by NDE
Damage
Mechanisms are
Identified and Evaluated
Considering Process
Stream Conditions,
Metallurgy, and
Stressors
damage will
be mitigated

Scenario – Effect of Event and
Consequence of Failure
Pressure
Boundary
is
Breached
Leak is not
Arrested or
Mitigated
Leak
Continues,
P4
Leak
Disperses no
Con-
sequence
Leak Finds
Ignition
Source
Or Receptor
Destruction
Occurs,
P5
Leak
Arrests
Damage
Continues
to Failure
Effectiveness of
Detection System
Or Mitigation
Potential for
Finding
Ignition
Source or
Toxic Receptor
lleak will be mitigated
(1-f4) = probabability
leak will disperse
with no problems
Pinhole
or Minor Leak,
Subcritical
Defect or Leak, or
Gross Failure are
Evaluated for
Potential Damage
Mechanisms

How it Is Done?
 For Success Will Need:
1. Management Commitment
2. Policy, Procedures
3. Tools (Management Systems,
SW, etc.)
4. Training and
5. Audit of Implementation

How it Is Done?
2. Policy & Procedures
SW etc.)
4. Training and

How it Is Done?
2. Policy & Procedures
SW, etc.)
 Management System for
Qualitative Analysis
 Customized Integration
 PHA Software
 XLS/Access
 SharePoint for Data
Management
 Associated Apps
 Inspection and Testing
Management System
 RBI Software, e.g. Aptech,
Capstone RBMI, API,
Reliasoft, PCMS, Tischuk,
TWI, Orbit, etc.
 Inspection Data
Management Software, e.g.
Ultra-pipe, 3-Rivers, etc.
 Deficiency Resolution
Management System
4. Training and

Qualitative Risk Discovery to Semi-
Quantitative When Needed

Qualitative RBI
 Expert Judgment and Weighting of Qualitative Factors
 Training Participants On Scope, Approach, And Details
 Materials And Corrosion Analysis with Process
Segmentation
 Qualitative Review With Plant Personnel
 Reduction Of Data
 Presentation Review Of Results and Inspection Plans
 Final Report
 Recommend Integration with PHA to Ensure
Continuous Improvement and Employee
Involvement

RBI Management System
Implementation Process
Equipment
Data
Collection
Process
System
Corrosion
Analysis
Qualitative
Analysis
Data Entry
Quantitative
Analysis
QC Audit and
Equipment
Integrity
Review
RBI Plan
Approval
Action
(Inspections
etc)
Results
Analysis
Criticality and
Plan Update
 Plan
 Document
 Execute
 Continuously
Improve

Implementation Process
Equipment
Data
Collection
Process
System
Corrosion
Analysis
Qualitative
Analysis
Data Entry
Quantitative
Analysis
QC Audit and
Equipment
Integrity
Review
RBI Plan
Approval
Action
(Inspections
etc)
Results
Analysis
Criticality and
Plan Update

Chance of Occurring X Failure Mode =
Qualitative Likelihood of Failure
CHANCE OF OCCURRING X FAILURE MODE
LIKELIHOOD

Qualitative Consequence of Failure

RESULT = 5x5 Matrix with History
Documented, For Use In Inspection Planning
Consequence Ranking
ABCDE
HIGH
MED HIGH
MEDIUM
LOW
1
2
3
4
5
ProbabilityRanking
Consequence
A-Catastrophic
B-Very Serious
C-Serious
D-Significant
E-Minor
Probability
1-Very High
2-High
3-Moderate
4-Low
5-Very Low

API RP 580 “Risk Based Inspection”
 Supports 510, 570, and 653
with Detailed Broad Based
Guidance and Criteria
 Provides Definition
 What RBI is
 Key Elements
 How to Implement a
Program
 No Preference to Single
Methodology
 Further Legitimatizes RBI
 Requirements for
 Documentation and Record
Keeping
 Training Program and
Certification in Conducting
RBI Analysis and Maintaining
the Program
 QC/QA of the RBI Analysis
and Maintenance
 Audits of the Program

Traditional MI vs RBI Implementation
 Collect PFDs and P&IDs for Unit. – Identical Activity for
RBI
 Create/Classify/Systems – Slight Modification to
Procedure for RBI Implementation
 System Break PFD Using Traditional Methods
 Collect MSDS Sheets For Each Major Stream As They Appear On
PFD
 Consult With Process Engineer/Operator To Obtain Pressures And
Temperatures For Process Lines On PFD
 Using Good Engineering Practices, And Accepted Procedures, Break
Major Systems At Locations That Best Achieve System Breaks IE:
Specs Break, Control Valves, Major Equipment Etc.
 Transfer systems to P&IDs and add systems as needed
and line breaks per procedures. – Requirements
Essentially Identical for RBI Implementation

 Risk Analysis - Qualitative Risk Analysis & Integration
with Process Hazard Analysis Using Agreed Upon Criteria
– Option to Use Quantitative Risk Based Software If
Desired on Select Items
 Walk down P&IDs (redline as needed and make system
adjustments per field changes) and develop FIELD
INVENTORY LIST as it is in the field.
 Develop System files for each system including MSDS
sheets and any other documentation collected to fortify
decisions made in systemizing. Classification is marked
for each system based on API 570 and MSDS /NFPA
flammability rating. – Identical Activity for RBI, Except
Potential Cost Savings and Potential to Focus on High
Risk Items if QRA is Done

 Taking each system at a time, Develop ISOs for FE and Piping
(separate) for Visual, UT, and/or any other needed NDT. Identical
Activity for RBI; Potential Cost Savings and Potential to Focus on High
Risk Items if QRA is Done
 Ensure Completeness and/or Build FE and Piping System Files –
Identical Activity for RBI
 UT each FE item along with Visual (using pre-accepted Check lists) -
Identical Activity for RBI, Except Cost Savings Using Prioritization of
Assets
 UT each Piping ISO including Visual (using checklists) - Identical
Activity for RBI, Except Cost Savings Using Prioritization of Assets
 Enter data into data management program for review with client for
deficiencies and inspection planning. - Identical Activity for RBI, Except
Cost Savings Using Prioritization of Assets
 Develop TROI list and/or NCR list for dispensation.
 Analyze Data and Develop Inspection Plans for Future - Identical
Activity for RBI, Except Cost Savings Using Prioritization of Assets

Risk After
Inspection
at Next TA
Date of
2016
Risk
Before
Inspection,
circa 2010

$$-TAG Savings From FFS and RBI
Well Documented
 Mid to Late 1990’s TAG Personnel Presented Cost
Savings (O&G Journal Article and NPRA)
 Open Less FE Items Just For Inspection
 Extend TA Interval
 2009 - Well Quantified, Tesoro NPRA
 TA Inspection Cost Savings Mo. 17, About $2.5M
 PV Inspection,
 Less RVs Maintenance
 LESS UT/Year, About $600K
 Safety, Environmental, and Lost Production Cost Benefits,
About $6.4M in Reduced Risk within 3 Mos Project
 2012, Caustic Cracking Example, $5MM To $10MM

Delivered Benefits From Project
Inspection Method Current
inspections
Cost RBMI
inspection
s
Cost Projected
Savings
Delivered
savings
INSPECTION COST RECUCTIONS
Thickness reading inspection costs vessels -
annual savings
11,580 $231,600 5,790 $115,800 $115,800
Thickness reading inspection costs piping
circuits - annual savings
32,236 $644,720 8,000 $160,000 $484,720
Total projected thickness reading inspection
costs vessels and piping
43,816 $876,320 13,790 $275,800 $600,520 $600,520
(on going)
TURN AROUND SAVINGS
2006 Turn around savings from reduced
frequency of relief valve maintenance
370 $555,000 222 $333,000 $222,000 $222,000
(month 17)
2010 Turn around savings from reduced
frequency of relief valve maintenance
370 $555,000 222 $333,000 $222,000
2006 turn around savings from reducing the
number of pressure vessels to be opened for
internal inspections
261 $5,220,000 183 $3,660,000 $1,560,000 $1,543,000
(month 17)
2010 turn around savings from reducing the
number of pressure vessels to be opened for
internal inspections
261 $5,220,000 183 $3,660,000 $1,560,000
RISK REDUCTION
10 year reduced risk of equipment
failure
$13,510,000 $6,373,000
(To date!!)

Calculating Risk And Risk Reduction
Cumulative Risk Curves, Production and Safety Losses
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
1 105 209 313 417 521 625 729 833 937 1041 1145 1249 1353 1457 1561 1665 1769 1873 1977 2081 2185
Equipment Component Count
CumulativeRisk($/yr)
As-Found Risk
Risk Distribution
10 1 10 0 0 0 0
33 2 1 10 3 18 1
22 3 0 6 3 12 1
25 4 5 0 0 17 3
100 5 27 0 0 65 8
E D C B A
190 43 16 6 112 13
After Risk Mitigation
Risk Distribution
3 1 3 0 0 0 0
13 2 2 6 0 5 0
25 3 4 10 3 8 0
35 4 6 0 3 21 5
114 5 28 0 0 78 8
E D C B A
190 43 16 6 112 13
• #4 gas risk reduction = $4,100,000
• Alky risk reduction = $3,950,000
• ACID risk reduction = $3,000,000
• FCC risk reduction = $1,300,000
• ARU risk reduction = $400,000
• #4 HDS risk reduction = $400,000
• #3 HDS risk reduction = $360,000
• Total $13,510,000

RBI Inspection Plan
The RBI Inspection Plan must use the
risk assessment to determine:
 When to Inspect (Interval)
 What to Inspect (Scope)
 How to Inspect (Method)
This must be done in a way that ensures that the
same risk values yield the same actions every
time.

Top 5 Reasons for Disappointment
with RBI
 1.
 2.
 3.
 4.
 5. The consultants didn’t understand our
plant or our systems

 1.
 2.
 3.
 4. RBI was too complicated for the
company team members
with RBI

 1.
 2.
 3. Problems with basic plant data
with RBI

 1.
 2. Lack of buy-in by some or all of the
organization
with RBI

 1. No measurable return on investment
 2. Lack of buy-in by some or all of the
organization
with RBI

Introduction to The Augustus Group and RBI

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