Kinder Morgan Louisiana Pipeline

(KMLP) Pipe issues

FY

PHMSA meeting
MOnday December 15, 2008
 KMLP Project Summary Introduction

• Project Description
• 137 mile 42 inch diameter pipeline
• 18 miles open water (approx.)
• 17 miles marsh (approx.)
• 102 miles upland (approx.)
• 23 HDD's totaling approx. 87,000 ft
Approx. 2.1 Bcf capacity at 1,440 psig MAOP
• 12 interconnects
• Special Rermit / 0.8 design waiver Class 1 locations only
• Class 1— 0.72 design factor (HDD's)
• Class 2 — 0.6 design factor (all)
• Class 3 — 0.5 design factor (all)
• Other design factors per 49 CFR part 192
KMLP Project Map
 Millie
0
1 Urine Ville Platte
0
' Reddel l
0

Evangeline
443I3 • COLUMBIA GULF TRANSMISSION COMPANY
r -r
Oberlin 0 shington

Allen 44397 -TRANSCONTINENTAL GAS PIPE UNE CORPORATION

ChataignIer

44306 • TEXAS EASTERN TRANSMISSION, LP

St. Lanci-j,
Reeves ° Lawton

WIDD ,22 TIGIJ, CUL Lti

KinderSenile

0
Indian Village
= I ;1 "3: " I."16
I II P
I I I ' Ur
,•
Will FuT Lid kAL

Lewisburg

146292-TEXAS GAS TRANSMISSION, LL 443741- FLORIDA GAS TRANSMISSION COMPANY, U.0

ns et
oint

0Fenton
Branch
0

0 Maxi*
C suer
44403 EGAN HUG STORAGE, LLC
Woodlawn 44380-TRUNKS/NE GAS COMPANY, LLC

44308 - TENNESSEE GAS PIPELINE COMPANY

Evangeline

411.0 .176 JJ,Oa,c1.1a

HET G
Lafaye
Mown entau
Jefferson Davis 0
Es tharwood

Sell City

E PIPE LINE LLC

Andrew
Lake Art 0

Guaydrae Meaux
0
midvirid V/3111110 fru

Abbeville
0
taraselna MallonalM16191846081 Era th
0

Herz Hub
OltemY

Vermilion
°Forked Island
neron

oasis St Honing Approx.

Hon e DESCRIPTION Pastor start Rnbh Length DO
Grand Chanter
1 Hwy. 52 0.60 02457 25057 MO
2 Moth of Sabine lake 0.72 153008 201008 5310
3 Make 1.434.81.4voldanda 0.72 14410 mum •. 2540
4 Shag Island 0.72 499+31 952+31 5300
S 35.0 island to 5 ICVMMte 1-2 072 95401 904+31 3000
6 SICVAVto 3 ICWW SW 34 0.72 1048+54 1097+52 5110
7 5 ICVAV to 5 1400 05065
05 0.72 I090+I2 1129+72 3100
8 3 ICVAV to 5 ICVONSIte 34 0.72 1130+72 1164.72 9900
9 S1CWW to SIONVISIte 67 0.71 1170+22 1194+22 2480
10 S ICVAV to 310Wd Ste 7.8 011 1164054 2304042 KINDEIIMORGAII
11 5 ICMAVMSICWW 51% 9-10 PL avoid. 0.72 1507+10 1151053 4445
12 5101W to 6 WNW (bitmenastal Candi 0.72 , 1313049 1330069 9740
13 Vinton 116414134 Canal 0.72 159349 1642+99 4950
14 Pipeline Corddet Podia Moss Rd.) 0.72 2015060 206449 1909 Kinder Morgan Louisiana Pipeline
ligyou Chouplque (Ids Most Rd.) 0.60 2236+06 2279+56 41.50
15
16 Caleaslau River 0.72 2547+21 2393+22 4601
Horizontal Directional Drills
17 1.140TerrninsiCanel (Bait Shop) 780 2336037 2639+73 4276
East Cargernii
sa State lexy.314Gre Lair NJ 0.60 2668.54 2895+99 2745 Prep by: SADavis 10 December 2006
19 km tarknor Rd. 000 2637046 2732+34 3485
20 Inta1911e10 0.60 4019010 4071004 4194 Design Scale: 1 4 Mies File: KMLP_HDD DrIlls_b_y1208a.mxd
21 BAYOU 4e509*. 0.71 5199+63 515943 3910
The sup Wm been mreMlly earnollarl and printed by Kinder Morgan from available Information.
22 716er WM 0.40 3905015 5935+55 3000 Nadu Morgan dee. net guaranies Via soeureey of Ns map or information delineated 01010011.
U 24' KM Lateral- Bayou Des Canna 0.71 63+20 67+20 2400 Her 4000 gamic. Malan *swim reapomfbIlry for any reliance themen. Radplant aim., not
uph diesIbuts or 4gilk. WI map without exprass oinsont from Kinder Morgan id Rs effillales.
24 re Pipeline Avoidance 0.72 95.25 56.24 2000
 KMLP Project Summary Issue/Discovery
OfIRMISMS650.1511.11WATMATI , MMV,Vr

Identified pipe issue

▪ 42" OD x 0.864 w.t. pipe not in conformance to API 51.)(70
• Random tensile testing results indicate approx. 13% of 0.864 w.t. pipe
has yield values that are not in conformance to API 51)(70
• pipe in question exceeds yield strength required for MAOP
• Yield value variability within same heats
Plate rolling parameters
Metallurgical strength model by DGS Metallurgical Solutions, inc.
• Discovery of issue
• It is standard practice to subject assembled string of HDD pipe to a
pre-installation hydrostatic pressure test
• Pre-installation test pressures from approx. 2,160 psig (1.5 x design) to
approx. 2,678 psig (93% SMYS)
• Minor deformation in the pipe diameter of several pipe joints was
observed on pipe tested to 93% SMYS or higher.
 KMLP Project Summary —Discovery (con't)

• Discovery of issue (con't)

• Deformation confirmed with diameter tape measurements and
later using high resolution caliper tool survey
It The discovery of deformation of pipe resulting from pre-test
suggested low yield strength
• At time of discovery five (HDD's) had already been pulled in
place, five additional HDD's ready for installation
HDD #1 — Hwy 82, 2,560 ft (removed after discovery of pipe issue)
HDI? #4 — Shell Island, 5,300 ft
4 HDD #5 — Shell Island site 1— 2, 3,000 ft
HDD #7 - Shell Island site 4 — 5, 3,100 ft
4 HDD #8 — Shell Island site 5 — 6, 3,900 ft
• Upon discovery of the issue, KMLP undertook a study to
determine the extent of the pipe issue and develop resolutions.
 KMLP Issue Assessment/Testing

• Assessment
• Review pipe that had been tested to approx. 93% SMYS
▪ Reviewed tested pipe ready for HDD installation
Coating on pipe strings was visually inspected
. Indications of coating stress marks (discoloration) and longitudinally
aligned (LA) coating imperfections were identified
• Jeeping confirmed LA coating imperfections
Diameter tape measurements confirmed pipe had expanded at locations of
LA coating anomalies and minor expansions at locations with coating stress
Marks
• Preparedplan to run high resolution caliper surveys
▪ Reviewed information on installed HDD's
it Multiple coating repairs were required after pressure testing and prior to
HDD installation
Conducted high resolution caliper surveys
 KMLP Issue Assessment/Testing
Assessment (con/0
• Picture — pipe with confirmed expansion, approx. 0.27 and 0.5 inch clitt.
 KMLP Issue Assessment/Testing

• Assessment (con't)
• Picture — coating longitudinally aligned imperfections
 KMLP Issue Assessment/Testing

I. Assessment (con't)
• Picture — coating stress marks (discoloration)
 KMLP Issue Assessment/Testing

• Assessment (con't)
• Picture — coating stress marks (discoloration)
 KM LP Issue Assessment/Testing

• Assessment (con't)
• Commissioned third party coating lab to analyze stressed FBE/ARO
coating
▪ Coating test results indicate that the areas with stress marks perform
as well as areas without stress marks; "...the coating should deliver
satisfactory performance in the intended service...'
▪ Reviewed high resolution survey results by comparing variability from
nominal diameter within each pipe joint
Diameter variability ranged from approx. 0.05 inches to approx. 0.8 inches
for all pipe surveyed, and approx .05 inches to approx. 0.46 inches in the
installed HDD's.
Qeveloped criteria using caliper tool data to flag 'potential" expansion
within each joint based on:
• Criteria needed to account for pipe manufacturing/forming process
allowance of +0.250 inches, per API 5L
▪ Criteria used data trends (signature), severity of (data) rate change
• Criteria established a variance threshold — 0.10 inch min to max
diameter variance
 KMLP Issue Assessment/Testing

Magpie high resolution caliper tool