Safety and Security Review for the Process Industries: Application of HAZOP, PHA, What-IF and SVA Reviews

Safety and Security Review for the Process Industries

Application of HAZOP, PHA, What-IF and SVA Reviews

Fourth Edition

Dennis P. Nolan, PH.D., P.E.

Table of Contents

Cover image

Title page

Dedication

Copyright

About the Author

Preface

Acknowledgments

List of Acronyms

Notice

Chapter 1. Purpose

Chapter 2. Scope

Chapter 3. Objective and Description of PHA, What-If, and HAZOP Reviews

3.1 Definition

3.2 Objectives

3.3 Origins of Qualitative Safety Reviews

3.4 Limitations and Disadvantages

Chapter 4. Adaptation to Security Vulnerability Analysis

4.1 Comparison to PHA Reviews

4.2 SVA Overall Procedure

4.3 Major Differences Between SVAs and PHAs

4.4 Threat Analysis Necessity

Chapter 5. Specialized Reviews—CHAZOP, EHAZOP, Bow-Tie Analysis, Layers of Protection Analysis, Safety Integrity Level, Fishbone Diagram, and Cyber Security Vulnerability Analysis

5.1 Computer Hazard and Operability Study

5.2 Electrical Hazard and Operability Study

5.3 Bow-Tie Analysis

5.4 Layers of Protection Analysis

5.5 SIL Analysis

5.6 Fishbone Diagram—A Cause and Effect Investigative Technique

5.7 Cyber Security Vulnerability Analysis

Chapter 6. Team Members: Qualifications and Responsibilities

6.1 Team Members

6.2 Team Member Qualifications

6.3 Team Responsibilities

6.4 Team Dynamics

6.5 Use of Consultants

6.6 Record of Employee Experience

Chapter 7. Management Support and Responsibilities

Chapter 8. Review Applications for Typical Facilities

8.1 PHA Review Applications

8.2 What-If Review Applications

8.3 HAZOP Review Applications

8.4 SVA Review Applications

8.5 Application During Changes at a Facility

Chapter 9. Review Procedures

9.1 Review Preparation and Setup

9.2 Review Methodology

9.3 Review Procedure

9.4 Credible Scenarios and Causes

9.5 Safeguards

9.6 Likelihood (Probabilities)

9.7 Consequences

9.8 Worksheet Recording and Note Taking

9.9 Helpful Review Suggestions

9.10 Helpful Technical Suggestions

9.11 Assumptions for the Review Process

9.12 Providing Recommendations

9.13 Quality Audit

Chapter 10. Review Worksheets

10.1 PHA Worksheet

10.2 What-If Worksheet

10.3 HAZOP Worksheet

10.4 SVA Worksheet

10.5 Worksheet Identification

Chapter 11. Report Preparation and Distribution

11.1 Report Stages and Purposes

11.2 Report Preparation and Organization

11.3 Report Distribution

Chapter 12. Handling and Resolution of Recommendations

12.1 Ranking and Classifying Recommendations

12.2 Objectives of a Safe and Secure Facility Design

12.3 Recommendation Action Plans

12.4 Risk Assessment Studies

12.5 Risk Acceptance Criteria

12.6 Cost-Benefit Analysis

Chapter 13. Schedule and Cost Estimates

13.1 Schedule

13.2 Cost Estimate

13.3 Estimating Formula

13.4 Example Calculation for Schedule and Cost

Appendix A. Typical Company Policy Statement

Appendix B. Quality Assurance Audit Checklist

Appendix C. Probability, Severity, Risk, and Risk Acceptance Tables

Appendix D. PHA and What-If/Checklist Questions

Part 1 Piping

Part 2 Valves

Part 3 Processing Vessels

Part 4 Tanks

Part 5 Pumps

Part 6 Compressors

Part 7 Heat Exchangers

Part 8 Reactors

Part 9 Columns (Towers)

Part 10 Flares

Part 11 Electrical Equipment

Part 12 Cooling Towers

Part 13 Utility Systems

Part 14 Human Factors

Part 15 Global Events

Appendix E. HAZOP Parameters, Deviations, and Possible Causes

Parameter, Deviation, and Possible Causes

Glossary

References

Index

Dedication

Dedicated to

Kushal, Nicholas, and Zebulon

Copyright

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Notices

Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.

Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.

To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein.

ISBN: 978-0-323-32295-9

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About the Author

Dr. Dennis P. Nolan has had a long career devoted to risk engineering, fire protection engineering, loss prevention engineering, and systems safety engineering. He holds a Doctor of Philosophy degree in Business Administration from Berne University, a Master of Science degree in Systems Management from Florida Institute of Technology, and a Bachelor of Science Degree in Fire Protection Engineering from the University of Maryland. He is a US-registered professional engineer in fire protection engineering in the state of California.

He is currently on the Executive Management staff of Saudi Aramco, located in Dhahran, Saudi Arabia, as a Loss Prevention Consultant/Chief Fire Prevention Engineer. He covers some of the largest oil and gas facilities in the world. The magnitude of the risks, worldwide sensitivity, and foreign location make this one of the most highly critical fire risk operations in the world. He has also been associated with Boeing, Lockheed, Marathon Oil Company, and Occidental Petroleum Corporation in various fire protection engineering, risk analysis, and safety roles in several locations in the United States and overseas. As part of his career, he has examined oil production, refining, and marketing facilities under severe conditions and in various unique worldwide locations, including Africa, Asia, Europe, the Middle East, Russia, and North and South America. His activity in the aerospace field has included engineering support for the NASA Space Shuttle launch facilities at Kennedy Space Center (and for those undertaken at Vandenberg Air Force Base, California) and classified national defense systems.

Dr. Nolan has received numerous safety awards and is a member of the American Society of Safety Engineers. He is the author of many technical papers and professional articles in various international fire safety publications. He has written four other books: Handbook of Fire and Explosion Protection Engineering Principles for Oil, Gas, Chemical, and Related Facilities (1st, 2nd, and 3rd editions), Fire Fighting Pumping Systems at Industrial Facilities (1st and 2nd editions), Encyclopedia of Fire Protection (1st and 2nd editions), and Loss Prevention and Safety Control Terms and Definitions. Dr. Nolan has also been listed for many years in Who’s Who in California, Who’s Who in the West, Who’s Who in the World, and Who’s Who in Science and Engineering publications. He was also listed in Outstanding Individuals of the 20th Century (2001) and Living Legends (2004), published by the International Biographical Center, Cambridge, England.

Preface

This book is intended as a typical resource and reference book that may be applied to industrial facilities, commercial processes, and systems. It is suggested that this resource be used as a practical reference to prepare the safety review requirements for a process safety or security management system.

The first edition of this book was titled Application of HAZOP and What-If Safety Reviews in the Petroleum, Petrochemical, and Chemical Industries and was originally published in 1994. Since that time, the use of Preliminary Hazard Analyses (PHAs) has become more prevalent and the threat to industrial and commercial facilities from security incidents has also become more relevant. Numerous other industrial and trade organizations have also since published similar guidance documents for PHAs and Security Vulnerability Analyses (SVAs). It was therefore prudent to update this book to include these aspects and also incorporate additional technical updates and features.

The third edition of this book added similar safety reviews related to PHAs and HAZOPs such as Bow-Tie Analysis (BTA), Layers of Protection Analysis (LOPA), and Safety Integrity Levels (SIL). This fourth edition includes recent variations on the HAZOP, that is, Control or Computer HAZOPs (CHAZOPs) and Power HAZOPs (PHAZOPs), utilization of the fishbone technique, and the integration of these safety reviews with the current trend of operational excellence that is being applied throughout the management of process facilities. Further refinements in the scope, overall content, regulatory changes, economics, and timing have also been incorporated. Using these methodologies to examine industrial facilities will greatly reduce the probability of an incident occurring from process upsets, unknown hazards, or security threats.

Acknowledgments

Figure 9.1 was provided by Issam Karkoutlie of INOVx Solutions, EAM Plant Solutions, Irvine, CA, reprinted with permission. Figures 10.1–10.4 were provided by Steve Metzler of Primatech, Inc., Columbus, OH, reprinted with permission.

List of Acronyms

AIChE American Institute of Chemical Engineers

ALARP As Low As Reasonably Practical

ANSI American National Standards Institute

API American Petroleum Institute

ASME American Society of Mechanical Engineers

BPCS Basic Process Control System

BS & W Basic Sediment and Water

BTA Bow-Tie Analysis

CCPS Center for Chemical Process Safety

CFATS Chemical Facility Anti-Terrorism Standard

CFR Code of Federal Regulations

CHAZOP Computer Hazard and Operability Study

CSAT Chemical Security Assessment Tool

CSB Chemical Safety and Hazard Investigation Board

CSVA Cyber Security Vulnerability Analysis

DHS Department of Homeland Security

DMR Dual Modular Redundant

EHAZOP Electrical Hazard and Operability Study

EPA Environmental Protection Agency

ERP Emergency Response Plan

ESD Emergency Shutdown

FBI Federal Bureau of Investigation

FDA Food and Drug Administration

FEED Front End Engineering Design

FMEA Failure Modes and Effects Analysis

FTA Fault Tree Analysis

GW Guideword

H2S Hydrogen Sulfide

HAZOP Hazard and Operability

HIPS High Integrity Protective Systems

HSE Health, Safety, and Environment

HVAC Heating, Ventilation, and Air Conditioning

ICI Imperial Chemical Industries, Ltd.

I/O Input/Output

IPL Independent Protection Layer

ISA International Society of Automation

JSA Job Safety Analysis

LNG Liquefied Natural Gas

LOPA Layers of Protection Analysis

LPG Liquefied Petroleum Gas

MOC Management of Change

MSDS Material Safety Data Sheet

MTBF Mean Time Between Failures

NACE National Association of Corrosion Engineers

NFPA National Fire Protection Association

NIST National Institute of Science and Technology

OE Operational Excellence

OSHA Occupational Safety and Health Administration

PC Personal Computer

PCV Pressure Control Valve

PET Project Estimated Time

PFD Process Flow Diagram

PHA Preliminary Hazard Analysis

PHL Preliminary Hazard List

P&ID Piping and Instrumentation Diagram

PL Protection Layer

PLC Programmable Logic Controller

PSM Process Safety Management

PSSR Pre-Startup Safety Review

PSV Pressure Safety Valve

QA Quality Assurance

RAM Risk Assessment Matrix

ROPA Ring of Protection Analysis

RP Recommended Practice

RR Risk Reduction

RRF Risk Reduction Factor

SAFE Safety and Failure Effects

SIF Safety Instrumented Function

SIL Safety Integrity Level

SIS Safety Instrumented System

SSP Site Security Plan

SVA Security Vulnerability Analysis

TMR Triple Modular Redundant

UK United Kingdom

Notice

Reasonable care has been taken to assure that the book’s content is authentic, timely, and relevant to the industry today; however, no representation or warranty is made as to its accuracy, completeness, or reliability. Consequentially, the author and publisher shall have no responsibility or legal liability to any person or organization for loss or damage caused or believed caused, directly or indirectly, by this information. In publishing this book, the publisher is not engaged in rendering legal advice or other professional services. It is up to the reader to investigate and assess his or her own situation. Should such study disclose a need for legal or other professional assistance, the reader should seek and engage the services of qualified professionals.

Chapter 1

Purpose

This chapter summarizes the US regulations that require Process Hazards Analysis (PHA) and Security Vulnerability Analyses (SVAs). It highlights the most common types of reviews undertaken and the depth of the subject reviews, discussing both qualitative (e.g., PHAs, What-Ifs, and HAZOPs) and quantitative methods (Event Trees, Fault Trees, Failure Mode and Analysis, etc.). It also discusses the need to undertake such reviews for periodic revalidation and facility changes. The benefits of such reviews can be used to demonstrate that the required PHAs or SVAs have been undertaken to interested parties.

Keywords

American Institute of Chemical Engineers (AIChE); American Petroleum Institute (API); Chemical Facility Anti-Terrorism Standard (CFATS); Chemical Safety Hazard Investigation Board (CSB); Department of Homeland Security (DHS); Environmental Protection Agency (EPA); executive order; hazard identification; hazardous substances; methodology; Occupational Safety and Health Administration (OSHA); procedures; Process Safety Management (PSM); regulations; security requirements

This publication is intended to provide guidance to qualitative hazard analyses conducted for industrial and commercial process, specifically for PHA (Preliminary Hazard Analysis), What-If, and HAZOP (Hazard and Operability) review teams. It also highlights how the methodology and procedures used for these reviews can be adopted and applied for