Procedure No: 10.400.

412
Occidental Oil and Gas Revision No.: 0
Revision Date: 0
Corporation Page No. 1 of 12
General Inspection Procedure Approved By: D A Stangor
for Pressure Equipment and Endorsed By:
Last Review
M L Ashby

Piping Date:
Effective Date: 1/28/2010

Table of Contents

1. PURPOSE ...................................................................................................2
2. APPLICATION/APPLICABILITY .................................................................2
3. REQUIREMENTS.........................................................................................2
3.1 BU Mechanical Integrity Program ..........................................................2
3.2 New Construction ..................................................................................3
3.3 TML/CML Criteria...................................................................................4
3.4 Baseline Inspections .............................................................................3
3.5 In-Service Inspections ..........................................................................5
3.6 Establishing Inspection Intervals ..........................................................6
3.7 Deferral Process ....................................................................................6
3.8 Risk-Based Inspections .........................................................................7
3.9 Deficiency Management.........................................................................7
3.10 Data Management, Storage, and Retrieval...........................................7
4. ROLES/RESPONSIBILITIES. ......................................................................7
5. REVIEW. ....................................................................................................7
6. DEFINITIONS/ABBREVIATIONS ................................................................7
7. REFERENCE DOCUMENTS ...........................................................................8
8. REVIEW LOG..............................................................................................9
9. ATTACHMENTS ..........................................................................................9
Occidental Oil and Gas Corporation Document No.: 10.400.412
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1. PURPOSE
The purpose of this procedure is to provide general mechanical integrity inspection
requirements that are applicable to all items covered under the scope of OOG
Mechanical Integrity Standard. This procedure shall be used in conjunction with
specific equipment and piping inspection procedures that shall be developed by each
individual BU, as required by the OOG Mechanical Integrity (MI) Standard and
individual OOG MI Equipment Inspection Procedures.

2. APPLICATION/APPLICABILITY
This procedure is applicable to all equipment categories covered under the OOG
Mechanical Integrity Standard 10.400.410. This procedure is applicable to all OOG
operated BU’s.
In all cases, the requirements of the jurisdiction applicable at the point of
installation must be met, regardless of the provisions contained in this
procedure. In case of conflict between jurisdictional regulations and this
procedure, the jurisdictional regulations shall govern as long as they are
more stringent.

3. REQUIREMENTS

3.1 BU Mechanical Integrity Program

Each BU shall establish a written Mechanical Integrity Inspection Program approved
by the BU Mechanical Integrity Coordinator (MIC). The MIC shall retain ultimate
authority and responsibility for implementation of the Program. The MIC (or
inspection personnel authorized by the MIC) shall be consulted on all matters
affecting the mechanical integrity of covered items in each BU.
The written Mechanical Integrity Inspection Program shall address the following
items, at a minimum (see OOG MI Equipment and Piping Procedures for additional
details):
a. Organization and reporting structure for inspection personnel;
b. Documenting of inspection and quality assurance procedures;
c. Documenting and reporting inspection and test results;
d. Developing and implementing inspection plans – (only applies to API 510
Pressure Vessels);
e. Developing and documenting risk-based assessments, if utilized;
f. Establishing and documenting appropriate inspection intervals;
g. Corrective action for inspection and test results;
h. Internal auditing for compliance with the inspection procedure;
i. Review and approval of drawings, design calculations, and specifications for
repairs, alterations, and reratings;
j. Ensuring that all jurisdictional requirements for inspection, repairs,
alterations, and rerating are continuously met;
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k. Reporting to the inspector any process changes or other conditions that could
affect the integrity of the item;
l. Training requirements for inspection personnel regarding inspection tools,
techniques, and technical knowledge base;
m. Controls necessary to ensure that only qualified welders and welding
procedures are used for repairs and alterations;
n. Controls necessary to ensure that all repairs and alterations are performed in
accordance with the applicable inspection code and applicable OOG
Procedures;
o. Controls necessary to ensure that only qualified NDE examiners and
procedures are utilized;
p. Controls necessary to ensure that only materials conforming to the applicable
construction codes are utilized for repairs and alterations, including PMI
requirements;
q. Controls necessary to ensure that all inspection measurement, NDE and
testing equipment are properly maintained and calibrated;
r. Controls necessary to ensure the work of contract inspection agencies or
repair organizations meet the same inspection requirements as the applicable
OOG Business Unit;
s. Internal auditing requirements for effectiveness of the program (including
relieving devices).
The above program must be documented in a controlled format, and kept current
with applicable API Code edition/addenda revisions.
Specific jurisdictional requirements may dictate additional or alternative inspection
program elements be described (e.g. PHMSA/DOT pipelines). In these cases,
additions to the above program elements shall be approved by the BU MIC.

3.2 New Construction

For new construction quality assurance and installation requirements, see OOG
Mechanical Integrity and Quality Assurance Procedure 60.400.0305. Specific
documentation requirements (i.e., documents to be obtained) are identified in each
OOG MI Equipment and Piping Procedure (10.400.413 through 10.400.421).

3.3 TML/CML Criteria

The written program shall also specifically address thickness measurement locations
(TMLs) and/or condition monitoring locations (CMLs). Decisions regarding placement
and number of TMLs/CMLs shall be established based on the following:
• Potential and existing damage mechanisms (such as corrosion under
insulation (CUI)), identified per the OOG Corrosion Management Program,
10.400.423;
• Criticality assessment;
• Operating history/previous failures.
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Thickness Measurement Locations (TMLs) and/or Condition Monitoring Locations

(CMLs) shall be established by the MIC or MIC delegate.
After an appropriate number of subsequent inspections have been performed,
TML/CML number and coverage shall be:
• Increased, due to higher overall damage than expected;
• Remain the same, due to continued expected damage;
• Reduced, due to lower than expected damage;
• Eliminated, due to proven and documented non-existent damage.

NOTE: TML/CML reduction or elimination will require the documented approval of

the MIC. This can only be considered after a minimum of three inspections. In
considering a change in the inspection frequencies, the possibility of a change in the
corrosivity of a fluid or change in flow conditions shall be considered.
All TMLs/CMLs shall be permanently marked on each item and/or shall be accurately
mapped on a location sketch (i.e., isometric drawings) to ensure repeatability. Each
TML/CML shall have a unique identification to maintain traceability from the
equipment inspection location and sketch to the inspection database. Examples of
TML/CML sketches for some items are shown in the OOG MI Equipment and Piping
Procedures. TML/CML monitoring shall be documented in the inspection database
and be readily available for evaluation.
3.4 Baseline Inspections (See Attachment #1 – Flow Chart)
The following requirements apply when any of the following conditions are
encountered by each BU:
• Pressure Retaining Items (PRI) or structures are transitioned from new
construction to in-service;
• OOG acquisitions are transitioned from the existing owner/user to OOG and
credible documentation does not exist;
• Previously unknown or un-inspected items, items with no or partial
documentation;
• Component, equipment, item or pipe spool is replaced-in-kind.

1. Develop a summary list of all equipment and piping systems within the
BU scope of responsibility (i.e. assets, plants, GPS locations, off-shore
platforms, etc.)
2. Assign a unique identification number to each item (see the OOG Data
Management Procedure 10.400.424.) that is specific to that item, and
cannot be duplicated within the BU.
3. Obtain construction/installation data per the applicable OOG MI
Equipment/Piping Procedure (10.400.413 thru 10.400.421).
4. Using the OOG Critical Systems and Equipment Assessment Procedure,
determine if each equipment item or piping system/circuit is “critical”
or “non-critical”.
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5. If the system/PRI is “critical” proceed to step 6. If the system/PRI is

“non-critical”, then follow any applicable requirements established by
each BU.
6. Develop “critical” equipment/systems list for all “critical” items. Begin
preparing electronic and/or hard copy filing system for each item.
7. Perform or confirm that baseline inspections have been completed per
OOG MI Procedures and applicable codes/standards. Document
accordingly.
8. Evaluate inspection information and, if necessary, follow OOG
Deficiency Management Procedure 10.400.422.
9. Using the information above, develop an inspection plan and/or
schedule subsequent inspections/examinations per OOG MI Equipment
and Piping Procedures.
3.5 In-Service Inspections (Intrusive/Non-Intrusive)
After completion of the baseline inspections conducted as specified in section 3.4
above, each applicable item shall be scheduled for appropriate intrusive/non-
intrusive inspections in accordance with the OOG MI Equipment and Piping
Inspection Procedures.
a. Intrusive inspections (internal) may be considered as any of the following, as
determined by each BU MIC:
• Full-Body entry of the item, with complete access to all interior surfaces;
Where this cannot be achieved, a combination of the following will be
sufficient:
• Full or partial body entry of the item, with limited access to all interior
surfaces;
and/or
• Remote visual or electronic scanning with access to all interior surfaces.

b. Non-Intrusive inspections (external) may be considered as any of the following,

as determined by each BU MIC:
• Non-entry of the item, with complete visual access to all exterior surfaces;
Where this can not be achieved, a combination of the following will be sufficient:
• Non-entry of the item, with visual and additional Non Destructive
Examination (NDE) used to assess fitness for continued service (“on-stream”
inspections);
and/or
• Full or partial electronic scanning of exterior surfaces by electronic or other
NDE methods.

Deficient conditions shall be reported and corrected as described in section 3.8,

below.
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3.6 Establishing Inspection Intervals

Inspection intervals shall be established by the BU MIC using one of three methods
shown below:

a. Time-Based Criteria
b. Time/Condition-Based Criteria
c. Risk-Based Criteria

The chosen method (s) for each item shall be clearly identified in the inspection plan.
3.7 Deferral Process
Each BU shall develop a procedure which defines a systematic documented process
for notifying management of upcoming and past due inspections or
recommendations. It shall also establish the process for technical and risk
evaluations, and Management approval for deferring inspections or
recommendations.

If a deferral is required, documentation of the deferral request and approval shall

include the following: (see Attachment #2 for an example form)

• The reason the inspection or recommendation is, or will be, delinquent;

• Resolution plan (e.g. next turnaround);
• Justification for delaying the inspection or recommendation (i.e. technical
evaluation, risk assessment, etc.);
• Interim mitigation and monitoring plan including temporary safety
measures as applicable;
• New approved due date.

For equipment subject to jurisdictional inspections, deferral of inspection shall be

approved in writing per regulatory agency requirements. If deferral of the inspection
is approved by the agency, the deferral form shall be completed, and the agency’s
written approval shall be attached to the completed deferral form.
3.8 Risk-Based Inspections
Risk-Based Inspection (RBI) assessments may be performed to establish the nature
and frequency of inspections, if allowed by jurisdictional rules. All RBI assessments
must be conducted in accordance with the applicable referencing Code (i.e., API 510,
570, 653 or National Board Inspection Code (NBIC)) and the specific provisions
contained in API RP 580.
Specific RBI procedures in accordance with API RP 580 (semi-quantitative) shall be
established by each BU prior to implementing an RBI program. All RBI contractors,
software, and personnel shall be reviewed and approved by each BU MIC prior to
implementation. All RBI results must be reviewed and accepted (by signature) by the
MIC.
3.9 Deficiency Management
Any inspections that result in the identification of deficiencies associated with critical
equipment shall be processed in accordance with OOG Deficiency Management
Procedure 10.400.422.
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3.10 Data Management, Storage and Retrieval

Each BU shall establish a procedure for reporting and retention of all inspection,
engineering, and evaluation documentation pertaining to the integrity of items
covered by the MI Standard. These procedures shall be in accordance with the OOG
Data Management procedure 10.400.424.
The BU MIC shall identify whether electronic filing, hard copy filing, or both will be
used. The security of all files shall be controlled to limit access and prevent un-
authorized access to the inspection data.

4. ROLES/RESPONSIBILITIES
Each BU must appoint a qualified Mechanical Integrity Coordinator (MIC). This
individual will retain overall responsibility and authority for development and
implementation of the BU Mechanical Integrity Program
The OOG requirements for personnel qualifications and certifications are contained in
OOG Competency Procedure 10.400.427 which covers the minimum qualifications
and certifications required for:
• Equipment and Piping Inspectors;
• NDE/Examination Personnel;
• RBI and Fitness For Service (FFS) Personnel.

5. REVIEW
This procedure shall be reviewed by World Wide Engineering (WWE) within three (3)
years of its revision date.

6. DEFINITIONS/ABBREVIATIONS
(See Mechanical Integrity Standard 10.400.410 for additional definitions/abbreviations)

6.1 Baseline Inspection

The initial or first formal inspection of a piece of equipment, piping, or structure.
6.2 BU
Individual business units within the OOG structure.
6.3 CUI
Corrosion Under Insulation
6.4 FFS
Fitness-for-Service evaluations
6.5 In-service (post commissioning) Inspections
Inspections conducted after an item or system has been transitioned from new-
construction or acquisition status to operational.
6.6 MIQA
OOG HES&S Mechanical Integrity & Quality Assurance Program 60.400.0305.
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6.7 MIC
Business Unit Mechanical Integrity Coordinator.
6.8 NDE
Non-Destructive Examination
6.9 On-stream Inspections
All inspection activities associated with equipment and piping after it has been
initially placed in-service, but before it has been retired.
6.10 PMI
Positive Material Identification
6.11 PRI
Pressure Retaining Item (including vessels, atmospheric storage tanks, relieving
devices, piping, pipelines, and apertures).
6.12 TML/CML
Thickness Monitoring Location/Condition Monitoring Location

7. REFERENCE DOCUMENTS
OOG Mechanical Integrity Standard, 10.400.0410
OOG Unfired Pressure Vessels Procedure 10.400.413
OOG Fired Pressure Vessels Procedure 10.400.414
OOG Relief Devices Procedure 10.400.415
OOG Piping Systems Procedure 10.400.416
OOG Atmospheric Storage Tanks Procedure 10.400.417
OOG Pipelines Procedure 10.400.418
OOG Offshore Steel Structures Procedure 10.400.419
OOG Offshore Risers Procedure 10.400.420
OOG Flare Systems Procedure 10.400.421
OOG Deficiency Management Procedure 10.400.422
OOG Corrosion Management Procedure 10.400.423
OOG Data Management Procedure 10.400.424
OOG Competency Procedure 10.400.427
OOG HES&S Mechanical Integrity and Quality Assurance Procedure
60.400.0305

8. REVIEW LOG

Date Reviewed: Reviewed By:

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9. ATTACHMENTS

Attachment #1 – Initial Baseline Assessment Flowchart

Attachment #2 – Deferral Form
 Occidental Oil and Gas Corporation Document No.: 10.400.412
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ATTACHMENT #1

PRESSURE RETAINING ITEM (PRI)

INITIAL BASELINE ASSESSMENT FLOW CHART

Develop summary list of all equipment and piping systems within BU

scope of responsibility (i.e., assets, plants, GPS locations, offshore
platforms, etc.)

Assign a unique identification number to each item (see the

OOG Data Management Procedure 10.400.424.) that is specific
to that item and cannot be duplicated within the BU.

Obtain construction/installation data per the applicable OOG MI

Equipment/Piping Procedure (10.400.413 thru 10.400.421).

Using the OOG Critical Systems and Equipment Assessment

Procedure, determine if each equipment item or piping
system/circuit is “critical” or “non-critical”.

NO Is
PRI/system
Critical?

Non-critical items shall be

inspected/evaluated at Yes
the discretion of each BU
Develop critical equipment/systems list for all critical
per the OOG Critical
items. Begin preparing electronic and/or hard copy
Systems and Equipment filing system for each item/system.
Procedure.

Perform or confirm baseline inspections have been

completed per OOG Inspection Procedures and
applicable codes/standards. Document accordingly.

Next page
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Continued from previous page

Deficiencies
No discovered Yes
or further
evaluation
required?

Perform remediation or fitness-

for-service evaluations per
OOG Deficiency Management
Procedure.

Using the information above, develop an

inspection plan and schedule subsequent
inspections/examinations per OOG MI
Equipment and Piping Procedures.

END
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ATTACHMENT #2 – DEFERRAL FORM

REQUEST FOR DEFERRAL OF CRITICAL MAINTENANCE OR INSPECTION

SUBJECT

DATE OF REQUEST REQUESTER

DATE OF LAST PM/INSP. WO No.

CURRENT DUE DATE PROPOSED

RESCHEDULED
DATE

DETAILS OF WAIVER AND PROPOSED MITIGATING MEASURES

EQUIPMENT:

REASON/CAUSE:

EVALUATION/MITIGATION:

COMMENTS:

RISK LEVEL (A - E) NB AI risk as per RBI evaluation (above)

APPROVAL
I confirm that the above proposal has been reviewed. A risk determination has been carried out and I hereby signify that the deferral be allowed.

NAME SIGNATURE DATE

Area Authority
HES Team Leader
Field Operation Manager

EXTENSION APPROVAL

EXTENSION DATE Field Operation Manager SIGNATURE DATE

Extension 1:
Extension 2:
Extension 3:

WITHDRAWAL

TO BE COMPLETED BY EQUIPMENT MAINTENANCE TEAM LEADER OR ASSET INTEGRITY TEAM LEADER

This deferral is cancelled. Original signed-off form to be held in maintenance/ asset integrity dept records.

NAME SIGNATURE DATE