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Penn West - Third-Party Tie-ins - Producer Guidelines

Third-Party Tie-in Policy

Producer Guidelines

Rev 3 June 2012 1


Penn West - Third-Party Tie-ins - Producer Guidelines

Table of Contents

Section Page

1.0 Introduction 3

2.0 General 3

3.0 Communications 3

4.0 Specifications 3

5.0 Approval 4

6.0 Costs 4

7.0 Access to Producers Sites and Information 5

8.0 Regulatory 5

9.0 Technical Details 5


9.2 Production Data Required 5
9.3 Design 6
9.4 Certification of Producer Designs and Information 9

10.0 Emergency Response Plans 10

11.0 Operatorship 11

12.0 Asset Integrity 12

13.0 Measurement 14

14.0 Environmental, Health, and Safety 20

15.0 Construction 21

16.0 Commissioning 24

Appendix 1 - Available Penn West General Specifications

Appendix 2 - Acceptable Piping Tie-in Configurations

Appendix 3 - Penn West Forms

PWE-01 Third-Party Tie-in Information Form


PWE-02 Construction Supervisor Request

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Penn West - Third-Party Tie-ins - Producer Guidelines

1.0 Introduction

1.1 Producers (Third Parties) who wish to investigate the technical and
commercial viability of a well tie-in to a Penn West operated facility are
requested to review the following facility design requirements and supply the
information requested within.

2.0 General

2.1 Penn West requests the following information for review to ensure that the
integrity of its systems, safety of its staff and the public, and the protection of
the environment is addressed. Penn West may request changes to the
Producers facilities if necessary and these requests must be complied with
unless the Producer can demonstrate that these changes will impact safety,
compliance with the codes and regulations and environment. Acceptance
and compliance with these requests, Penn Wests specifications and
standards shall in no way be considered as release of the Producer and its
employees from the applicable codes, standards and Producers practices,
procedures, standards and specifications. In all cases the most stringent
rules shall apply.

2.2 Producers shall be responsible for verification of the site conditions, the
facility and piping arrangements at the point of tie-in. Penn West shall not be
held responsible for any changes to the Producers tie-in in the event that the
site conditions, facility and piping configuration are different from the
information provided by Penn West to the Producer.

2.3 Producers shall ensure that the design, installation, construction and
operation of their facilities does not harm, damage or disrupt operation of
Penn Wests Facilities during and after construction.

2.4 There are various types of tie-ins. A direct tie-in is one which ties directly into
Penn West owned and/or operated facilities and/or piping. An indirect tie-in is
one which ties into a non-owned and/or operated facility and/or pipeline. An
other type of tie-in is one which may involve utilities such as fuel gas.

3.0 Communications

3.1 All initial communications from the Producer will be directed to the Penn West
- Joint Venture (JV) Representative.

4.0 Specifications

4.1 Producer tie-ins that are connected to Penn Wests facilities and are within
Penn Wests rights-of-way or lease boundaries and any Producer tie-ins to be
contract operated by Penn West shall meet the following requirements:

4.1.1 Facility installations shall be in compliance with all applicable


codes, regulations and standards.

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Penn West - Third-Party Tie-ins - Producer Guidelines

4.1.2 Designs shall meet or exceed Penn West standards and


specifications, which are based on industry standards and good
engineering practice. Any deviations must be approved in writing
by Penn West.

4.1.3 Designs shall meet or exceed the latest edition of CSA Z662 for
pipelines and ASME B31.3 code for facility piping.

4.1.4 All pipeline and pipeline riser materials shall meet the
requirements of CSA Z 662 latest edition (or Z 245.1, Z 245.11 or
Z 245.15 (latest edition of applicable standard). Dual certified
material (e.g. CSA/ASTM) is acceptable, but the manufacturers
and/or distributors documentation must state explicitly to the
purchaser that materials meet the requirements of CSA Z 662
latest edition.

5.0 Approval

5.1 Penn West will initiate review of the Producer information upon receipt of all
information requested. The time required to complete these reviews will
depend upon the complexity of the systems into which the tie-in will be made
and the completeness of this information.

5.2 Producer must be able to verify to Penn West that the work they have
performed is in compliance with the information they have provided, prior to
commencing production into the Penn West system.

6.0 Costs

6.1 Producer shall pay for all costs including Penn Wests internal and external
engineering, project management, material, equipment, construction costs,
and permitting or licensing required to:

6.1.1 Modify Penn West facilities or pipelines.

6.1.2 Modify any associated licenses or permits.

6.1.3 Modify any emergency response plans for these facilities.

6.1.4 Modify facility documentation, programming, measurement, and


reporting, or operating procedures as required to accommodate
the tie-in.

6.2 Whenever costs will be incurred by Penn West for the design and
construction services in support of a tie-in, Penn West shall submit a Penn
West AFE for such costs to Producer for Producers review and approval.
Where a Penn West AFE has been submitted to Producer, the tie-in shall not
proceed until the AFE has been duly approved by Producer and returned to
Penn West.

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Penn West - Third-Party Tie-ins - Producer Guidelines

6.3 Producers shall reimburse Penn West for Penn West Construction Supervisor
costs.

7.0 Access to Producers Sites and Information

7.1 Producer shall provide Penn West unencumbered access to all associated
work sites as reasonably required.

7.2 Where protection systems that impact Penn West facilities are located on
Producers sites, Producer shall provide Penn West with unencumbered
access, as reasonably required, for the purpose of verifying the protection
systems have been installed and are being maintained as necessary to
protect the integrity and compliance of Penn West facilities.

7.3 When the protection systems that impact facilities are located within
Producers facilities and are maintained by a Producer, the Producer shall
provide Penn West with documentation showing that said equipment is being
properly serviced, calibrated and maintained in compliance with national and
provincial acts, regulations, directives, codes and standards within seven
days of being requested by Penn West.

8.0 Regulatory

8.1 Producers shall provide the following documentation for review by Penn West
and verification of compliance with rules and regulations prior to proceeding
with the tie-in:

8.1.1 Copy of the regulatory permit and if requested, the audit file.

8.1.2 For contract operated facilities, a copy of the Directive 56


Participant Notifications (or equivalent if in a province other than
Alberta) and a copy of any relevant public or industry concerns
pertaining to the installation and operation of the facility.

9.0 Technical Details

9.1 The Producer shall provide Penn West with specific technical details of their
proposed tie-in, with PWE-01 Third-Party Tie-in Information Form in Appendix
3.

9.2 Production Data Required

9.2.1 As a minimum, Penn West requires the following production data


prior to obtaining approval for the tie-in. Additional data may be
required depending on the type of the facilities and well
conditions. See form PWE-01 Third Party Tie-in Information Form
in Appendix 3.

9.2.2 Analysis showing gas and liquid quality

9.2.2.1 H2S content (indicate detection method).

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Penn West - Third-Party Tie-ins - Producer Guidelines

9.2.2.2 CO2 content.

9.2.2.3 Wax content (if known).

9.2.2.4 Asphaltenes content (if known).

9.2.2.5 Elemental sulphur content (if known).

9.2.2.6 Chloride content.

9.2.2.7 Tendency to form emulsions.

9.2.2.8 Other trace elements, compounds, contaminants that will


impact operations, integrity of Penn Wests facilities or
the salability of the well effluent.

9.2.3 If analyses are not available for the specific well being tied in then
representative analyses from analogous wells shall be provided.
Well specific analysis shall be provided within seven (7) days of
the commencement of operations.

9.3 Design

9.3.1 All facilities on Penn West leases and/or rights-of-way shall be


designed and constructed to Penn West specifications. See
Appendix 1 for a list of available Penn West specifications.

9.3.2 If facilities on Penn West leases and/or rights-of-way are to be


designed and/or constructed by the Producer then all designs and
construction plans must be approved by a Penn West Facilities
Engineer prior to commencement of construction.

9.3.3 The Producer is responsible for verification of actual site


conditions, piping/pipeline layouts, and operating protocols that
may affect their tie-in.

9.3.4 Following is a list of general requirements to aid Producers in their


design work that Producers shall use as guidelines, unless
otherwise specified by Penn West:

9.3.4.1 Tie-ins shall be made at an existing riser where


possible or at a riser installed specifically for the tie-in.

9.3.4.2 The location of the riser shall be approved by Penn


West.

9.3.4.3 The riser shall include a check valve and a lockable


manual trunnion mounted double block and bleed block
valve.

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Penn West - Third-Party Tie-ins - Producer Guidelines

9.3.4.4 The piping arrangement shall include a connection


available for future Penn West tie-ins.

9.3.4.5 All valves at the tie-in point, shall be fire safe,


greaseable valves (with fittings installed).

9.3.4.6 All valves must be serviced prior to start-up.

9.3.4.7 Tie-ins to existing Penn West pipelines shall be cold


cuts unless otherwise approved by Penn West.

9.3.4.8 The replacement piping materials, design and


installation shall be in accordance with CSA Z662.

9.3.4.9 The replacement piping arrangement cut into any Penn


West pipeline must be pre-tested in accordance with
CSA Z662.

9.3.4.10 The Producer pipeline, unless otherwise approved by


Penn West, must have pigging capability for the entire
length of its pipeline.

9.3.4.11 The Producer shall license its pipeline to the same


MOP as Penn Wests pipeline and if sour service, to
the same H2S content.

9.3.4.12 Where the pipeline is connected to wells having a shut-


in pressure or to a compressor or to a higher pressure
rated system, a pressure control system and a
separate, independent overpressure protection system
shall be provided.

9.3.4.12.1 The overpressure system shall be either a


full flow relief valve or an ESD valve.

9.3.4.12.2 ESD valves shall be equipped with a car-


seal open pilot valve, a high/low pressure
pilot, a test port and a gauge port.

9.3.4.13 Producer systems shall be designed to avoid


unacceptable movement or stress or strain being in
imposed on Penn Wests facilities.

9.3.4.13.1 At the tie-in point, the Producer pipeline


must be anchored or restrained and shall
provide sufficient flexibility in its pipeline
system design to allow for its expansion.

9.3.4.13.2 Single point riser and pipeline supports shall


be avoided.

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Penn West - Third-Party Tie-ins - Producer Guidelines

9.3.4.13.3 Stress analysis shall be performed on all tie-


ins having an operating temperature greater
than 50 oC or an H2S or CO2 content greater
than 5% or a size 273 mm OD and larger.

9.3.4.13.4 A copy of the stress analysis shall be


provided for Penn Wests review.

9.3.4.14 Producer connections into sour systems as defined


under ERCB Directive 56 and 71 shall be isolated
from Penn Wests systems by a Penn West approved
emergency shutdown (ESD) valve assembly unless
otherwise approved by Penn West.

9.3.4.14.1 ESD valves shall be equipped with a car-


sealed open pilot valve, a high/ low
pressure pilot, a test port and a gauge port.

9.3.4.15 Steel pipeline systems must be cathodically


protected. If connected to Penn Wests cathodic
system, the pipeline riser at the wellhead must have
Pikotek cathodic insulation kit installed. The
insulation kit shall be installed on the upstream side
of the first block valve above ground.

9.3.4.16 Hydrate control shall be by the method specified by


Penn West. Producer shall obtain prior approval
from Penn West before injecting MEOH or other
chemicals to control or remove hydrates.

9.3.5 The custody transfer point shall be indicated on the P&ID, and
shall be on the upstream side of the tie-in manual block valve.

9.3.6 Unless otherwise approved by Penn West, Producers


measurement and SCADA system shall be of the same type,
manufacturer, and configuration as Penn West existing systems.

9.3.7 All pipelines that tie-in to Penn West facilities and/or pipelines
shall be licensed to a same Maximum Operating Pressure (MOP)
as the Penn West system they are being tied into. In cases where
the MOP of the Producers facilities and/or pipeline do not match
the MOP of the Penn West system, the Producer shall install a
Penn West approved pressure control system and automated
Emergency Shutdown Valve set to close at the MOP of the Penn
West system.

9.3.8 Sour pipelines that tie into Penn West sour pipelines shall be
licensed to the same H2S content as the Penn West pipeline.

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Penn West - Third-Party Tie-ins - Producer Guidelines

9.3.9 When required, Producers shall install corrosion monitoring, high


pressure access fittings at the tie-in point to Penn West system.

9.3.10 See Appendix 2 for Acceptable Pipeline Tie-in Configurations.

9.4 Certification of Producers Designs and Information

9.4.1 All designs and drawings submitted to Penn West shall be signed
and stamped by a professional engineer registered within the
province in which the facilities will be installed.

9.4.2 Penn West does not intend to review and/or approve Producers
off lease/right-of-way facilities designs. At the same time, Penn
West recognizes that in certain situations it is advantageous to
have the required protection systems installed within the
Producers upstream facilities. Penn West therefore requests that
the producer provide a professional engineered signed and
stamped detail description of:

9.4.2.1 The over pressure protection system that will be in place


and verification that it complies with CSA Z662.

9.4.2.2 How inlet temperatures will be limited.

9.4.2.3 How H2S concentrations will be monitored and/or limited.

9.4.2.4 The hydrate/freeze protection system that will be in


place.

9.4.3 Typical drawings required include:

9.4.3.1 Detailed P&ID showing specification break points,


equipment capacities and ratings, safety devices and
set points, instrumentation and controls, measurement
points.

9.4.3.2 Dimensioned Isometric Drawing showing applicable


code, design and operating pressures and
temperatures, materials, level of inspection and
pressure test requirements. A description of support
requirements should also be included on the drawing
or attached thereto.

9.4.3.3 Dimensioned plot plan showing the tie-in location and


in the case of contract operated facilities, the facility.
The plot plan must show that all on and off lease
regulatory spacing requirements have been met.
These drawings must extend 100 metres beyond the
edge of the lease boundary.

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Penn West - Third-Party Tie-ins - Producer Guidelines

9.4.3.4 For sites that will tie into the PennWest SCADA
systems, a copy of the electrical (I/O) drawings and
shutdown key are required to coordinate programming
and SCADA commissioning. Measurement only
applications with no supervisory control do not require
these drawings.

9.4.3.5 For sites requiring automation/electrification, a copy of


the area classification diagram, grounding details,
cable schedule and single line diagram. (If site is Penn
West Operated).

9.4.3.6 Bill of materials for separator package if applicable.

9.4.3.7 Analysis (gas and/or liquid).

10.0 Emergency Response Plans (ERP)

10.1 In accordance with Directive 71, Penn West as licensee of a sour


production facility is responsible for emergency response procedures for
the entire gathering system.

10.2 Producer licensees of a gathering system associated with the facility are
required to enter into a cooperative mutual aid agreement with the facility
licensee operator to ensure appropriate initial response.

10.3 Producers shall provide the following for all sour systems:

10.3.1 A copy of the Directive 71 Notification Letter (or equivalent in a


province other than Alberta).

10.3.2 A copy of the Emergency Response Plan approved by the


regulator for that province. This plan must be accepted by Penn
West prior to the commencement of operations.

10.3.3 A copy of the data, including a gas analysis showing maximum


H2S content, survey showing measured length and the
calculations showing all of the input parameters and formula used
to determine the emergency planning zone. The calculations shall
be prepared under the direction of, and shall be stamped and
signed by a professional engineer having authority to do so within
the jurisdiction of the facilities being installed.

10.3.4 A copy of any relevant public or industry concerns pertaining to


the installation and operation of the facility that have arisen as a
result of the notification process.

10.4 In situations where an Emergency Response Plan is required:

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Penn West - Third-Party Tie-ins - Producer Guidelines

10.4.1 Producers shall incorporate an automated Emergency Shutdown


(ESD) valve at the tie-in point to Penn West system immediately
upstream of the custody transfer point.

10.4.2 Producers shall supply calibration and maintenance records for


ESD valves that impact Penn West system annually or as
requested.

11.0 Operatorship

11.1 In cases where Penn West is the contract operator of Producers facilities,
the Producer shall provide information necessary to incorporate
Producers facilities into Penn Wests ERP. As a minimum this shall
include:

11.1.1 Copies of information packages provided to residents and other


affected parties within the emergency planning zone. This
information shall indicate that Penn West is the operator and the
first responder should an emergency occur.

11.1.2 Copies of the gas or fluid analysis showing maximum H2S


content.

11.1.3 Copies of the facility and/or pipeline survey showing measured


length, locations of the ESD valves.

11.1.4 Copies of the calculations used to determine the emergency


planning zone including input parameters and formula. In Alberta,
these calculations shall be performed using the ERCB H2S Model.

11.1.5 Third-party contact information including names, titles, location,


telephone number and responsibilities.

11.1.6 Producers 24 hour emergency contact (name, telephone number


and location).

11.1.7 Resident and other affected partys consultation information within


the emergency planning zone.

11.1.8 Copy of any relevant public or industry concerns pertaining to the


installation and operation of the facility that have arisen as a result
of the notification process.

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Penn West - Third-Party Tie-ins - Producer Guidelines

12.0 Asset Integrity

12.1 All sour systems, multiphase systems, systems containing greater than
2% CO2 or other corrosive fluids shall be reviewed by Penn Wests Asset
Integrity Group.

12.2 Producers corrosion mitigation program must be compatible with Penn


Wests mitigation program.

12.3 Producers must seek prior approval before injecting any substances into
the system upstream of Penn West.

12.4 Penn West reserves the right to require Producers to:

12.4.1 Use specific chemical vendors and products.

12.4.2 Install chemical injection facilities; injection points, pumps, tanks,


etc.

12.4.3 Monitor the corrosiveness of their systems.

12.4.4 Share corrosion monitoring and control information.

12.5 Facilities shall be equipped with:

12.5.1 Chemical injection pumps and chemical storage, as required by


Penn West.

12.5.2 Corrosion coupon holder c/w coupons set at the midpoint of the
process flow at the tie-in riser. The corrosion coupon holder must
be mounted on the process piping with flange connection in a
segment of pipe in the normal process flow. The corrosion
coupon must be in such position to allow the piping to be isolated
(block valves on either side) and depressurized to allow safe
removal of the coupons. Producer shall provide Penn West with a
copy of all corrosion monitoring reports.

12.6 If cathodic protection is supplied by Penn West (current drained onto


Penn West system), the Producer shall ensure their system is isolated
from above ground facilities and/or wellhead(s).

12.7 Within seven (7) days of completion of the work, the Producer shall send
to Penn Wests Joint Venture Representative a copy of the above
information together with the following information for all work conducted
upon Penn Wests leases or rights-of-way up to the designated tie-in point
which shall be the first block valve or lease boundary (which ever is first
unless otherwise noted):

12.7.1 Radiography film and radiograph and hardness test records.

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Penn West - Third-Party Tie-ins - Producer Guidelines

12.7.2 Piping Pressure test report and charts. For pipeline systems a
copy of pressure test chart and the back of the chart shall indicate:

12.7.2.1 Pipe specifications.

12.7.2.2 Regulatory permit number and line number.

12.7.2.3 Maximum operating pressure (MOP).

12.7.2.4 Description of the pipeline to/from coordinates.

12.7.2.5 Test pressure.

12.7.2.6 Test medium.

12.7.2.7 Duration of the test.

12.7.2.8 Deadweight pressures.

12.7.2.9 Test start time and date.

12.7.2.10 Test completion time and date.

12.7.2.11 Temperature.

12.7.2.12 Comments on any test deviation.

12.7.2.13 Signature of witnesses.

12.7.2.14 Copy of Test Equipment calibration records.

12.7.2.15 Sequential heat numbers of pipe as installed.

12.7.2.16 X-ray maps. To be shown on piping isos for


facilities and on survey construction plans showing
direction of radiography and location of tie-in welds.

12.7.2.17 Producers Contractor must complete any other


documentation as stipulated in its approved Quality
Control Procedure. Weld and x-ray map will be
made available if completed.

12.7.2.18 For facility piping a copy of a completed AB-83 form


(or equivalent).

12.7.2.19 An as-built drawing and pictures of the tie-in. The


drawings and pictures shall show the above and
below ground piping arrangement and piping
supports.

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Penn West - Third-Party Tie-ins - Producer Guidelines

12.7.2.20 Calibration reports for shutdown switches and


measurement.

13.0 Third Party Measurement Guidelines

Gas and liquid meters and associated equipment shall be installed by the
producer as specified in the guidelines below. Electronic flow measurement is
required for all third party gas production. Facility configuration, whether 2-phase,
3-phase, effluent or otherwise, shall be determined by Penn West. All
measurement equipment must be fully operational and must never be bypassed
or taken out of service without notification of Penn West operations personnel.

Penn West reserves the right to perform an initial inspection of each producer's
facilities to confirm that construction meets the installation requirements as
submitted to and approved by the Production Measurement Coordinator (PMC).
With reasonable notice to the producer, Penn West also reserves the right to
review the facilities at any time thereafter. Any facility modifications after initial
Penn West approval must be pre-approved by Penn West.

Penn West reserves the right to witness meter calibrations for start-up purposes.
Written (e-mail) notification shall be provided to the Penn West PMC 4 working
days prior to expected start-up. The notification shall include the following:
Detailed directions to location
Site contact name and telephone number
Time of start for calibration activities
The Penn West PMC will note any variances from this requirement and will take
action appropriate to the nature of the variance.

Penn West reserves the right to manage calibration and maintenance of the
measurement devices and will charge all associated costs back to the producer.
The metering equipment shall meet the specifications of Penn West as detailed
below.

13.1 Gas Measurement

1. Where orifice measurement is employed, the meter will be equipped with


senior (dual chamber) flange-tapped orifice plate holders with beveled edge
orifice plates and appropriate meter tube sections. The measurement
equipment shall be installed in accordance with Orifice Metering of Natural
Gas and Other Related Hydrocarbon Fluids, AGA Report No. 3 (latest
edition). The orifice meter run shall conform to AGA 2000 edition utilizing a
flange-style flow conditioning plate and installed as per the manufacturers
recommended design specifications.

2. Other flow conditioners such as pin-mounted flow-conditioning plates and 19-


tube bundle flow straighteners shall not be used.

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Penn West - Third-Party Tie-ins - Producer Guidelines

3. Any alternate technology used for gas measurement must be approved by


the PMC.

4. Super compressibility shall be calculated in accordance with AGA 8 Detailed


(latest edition) specifications.

5. Gas volumes shall be calculated in accordance with AGA Report No.3 (latest
edition) specifications.

6. Orifice meter runs must be installed in the vertical position, unless otherwise
approved by the PMC.

7. All sensing lines shall not exceed 1 metre in length.

8. The sensing lines shall have a minimum nominal diameter of 12.7mm (0.500
inch).

9. Sensing lines shall be sloped upward from the orifice fitting toward the
primary device with a slope of approximately 45 degrees.

10. The manifold shall be a five-valve manifold.

11. The isolation valves to the manifold shall be fully ported ball valves with a
nominal diameter identical to the sensing lines.

12. The static pressure shall be taken from the upstream side of the orifice fitting.
The flow computer performing the AGA volume calculation shall be checked
to confirm the static pressure is associated to the upstream pressure tap.

13. The meter run must be outfitted with a thermo well for temperature
measurement as indicated on Figure 1.

Thermowell
with RTD--
CPA 50 E Flow
Accounting
Conditioner Meter ID Meter
Plate

Figure 1

DUAL CHAMBER AGA 2000 METER RUN


WITH 3-PIECE FLANGED FLOW CONDITIONER

14. The beta ratio shall be maintained within a range of 0.15 to 0.70.

15. No connection or equipment shall be installed within the meter run that can
cause a flow disturbance, such as fuel gas take-off or chemical injection.
Chemical injection must be downstream of the meter run and sample point.

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Penn West - Third-Party Tie-ins - Producer Guidelines

16. Where a contract does not dictate, the atmospheric pressure must be based
on the site elevation and programmed into the electronic flow measurement
device. The site elevation shall be determined by using GPS or certified
government topographical maps. The calculation of atmospheric pressure is
based on the following:

a) Elevation in meters: 101.325 - (0.0113 x elevation) kPa

13.2 Liquid Measurement

1. All liquids shall be measured with a coriolis or turbine meter, as determined


by the PMC.

2. Any alternate technology used for liquid measurement must be approved by


the PMC.

3. Liquid meters shall be installed in accordance with applicable regulatory


standards and API requirements.

4. A minimum of 20 pipe diameters and 5 pipe diameters of straight pipe shall


be installed upstream and downstream, respectively, of a turbine meter. All
other meters shall be configured to the manufacturers specifications or local
regulatory requirements if they are more stringent.

5. All liquid meter configurations must include a static mixer installed


downstream of the straight pipe requirements of the meter and upstream of
the sample point.

6. The size of the prover taps must not alter or restrict flow through the meter.

7. Meter proving tap configuration at a well level must be as per Figure 2.

8. Meter proving tap configuration at a delivery point must be approved by the


PMC.

9. Delivery point meters for live hydrocarbon liquid must have temperature and
pressure correction, and meters for dead hydrocarbon liquid must have
temperature correction.

10. Delivery point hydrocarbon liquid meters must have a thermowell for
temperature measurement, and a second thermowell for monthly temperature
verification.

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Proving Taps

Figure 2
Typical Well Proving Tap Location

11. For 2-phase separated oil well applications, liquid meters must be equipped
with a PMC approved proportional sample system and a water-cut analyzer.
See example Figure 3 shown with Red Eye.

12. Three-phase separated oil well applications must be approved by PMC.

13. Liquid level controllers for the fluid dump valves must be snap acting.

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Penn West - Third-Party Tie-ins - Producer Guidelines

AGA 2000 3 PIECE FLANGED FLOW CONDITIONER

1 2 3 4 5 6

20 PD 5 PD
9

10
7

Descriptions:

1) Gas Sample Probe (Either 1 or 5) 2) CPA 50E Flow Conditioner


3) Thermowell with RTD for Accounting Meter 4) Thermowell with RTD for
2nd device
5) Gas sample Probe (Either 1 or 5) 6) Fuel Gas
7) Turbine Meter 8) Static Mixer
9) Red Eye 10) Sample Point and
Proportional Sampler Hook up

Figure 3
Typical Two-Phase Production Test Separator shown with Red Eye

13.3 Fuel Gas Measurement

1. The fuel gas shall be taken upstream of the gas meter, except for oil well test
separator applications where fuel gas shall be taken downstream of the gas
meter.

2. Fuel gas shall be metered if greater than 500m3/day (0.5 E3M3/day) or as


specified by Penn West.

3. Orifice meters or positive displacement meters with internal temperature and


pressure compensation are allowed for use. Any other meters must be
approved by the PMC.

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Penn West - Third-Party Tie-ins - Producer Guidelines

13.4 Sampling and Analysis

1. The producer shall supply to Penn West a representative gas and liquid
analysis prior to start-up. Penn West reserves the right to manage and control
future scheduling for sampling and analysis. All sampling shall be charged
back to the producer.

2. The producer shall install a sample probe for both liquid and gas. Sample
probes shall be located such that phase changes due to changes in
temperature and/or pressure are minimized.

3. The preferred location for gas sample points is the top of horizontal lines but
may also be located on the side of vertical lines with the probe tip sloping 45
degrees downward.

4. Gas sample probes shall be located on the upstream side of the orifice meter
run, and shall be at least 5 pipe diameters downstream of any piping
disturbances such as bends or elbows. Alternately, the sample probe may be
located at least 5 pipe diameters downstream of the orifice fitting, with any
chemical injection being installed downstream of sample probe.

5. The preferred location for liquid sample points is the side of horizontal lines
but may also be located on the side of vertical lines with the probe tip sloping
45 degrees downward.

6. For 3-phase separators, liquid sample probes shall be located between the
separator outlet and the level control valve upstream of the meter, unless a
pressure booster pump is used, in which case the sample probe shall be
between the pump discharge and the meter.

7. For 2-phase separators, liquid sample probes for S&W sampling shall be
located downstream of the meter but upstream of the level control valve.

13.5 Audit Trail and Reporting

1. All calibration and proving records for gas, liquid, or S&W devices shall be
stored and retained by the operator of record for a period of 7 years.

2. All gas and liquid delivery point meters must meet ERCB Directive 017 audit
trail and reporting requirements or local regulatory requirements if they are
more stringent.

3. All EFM (electronic flow measurement) devices must be accessible, have


read/write access by Penn West, be connected to a Penn West approved
host, and data must be transferable into Penn Wests Field Data Capture
(FDC) system.

13.6 Electronic Flow Measurement (EFM) Devices

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Penn West - Third-Party Tie-ins - Producer Guidelines

1. Floboss 103 is the Penn West standard EFM device, any other device must
be approved by the PMC.

2. Calibration and proving frequency shall be performed according to ERCB


Directive 017 or local regulatory requirements if they are more stringent.

3. Gas delivery point meters shall be calibrated semi-annually at a minimum.

4. Liquid delivery point meters shall be proved monthly, exceptions must be


approved by the PMC.

5. Gas and liquid EFM devices must meet all requirements specified in Chapter
21 of the API Manual of Petroleum Measurement Standard (latest edition).

6. Gas and liquid meters using EFM must meet calculation and reporting
requirements specified in ERCB Directive 017, or local regulatory
requirements if they are more stringent.

7. A performance evaluation test must be completed for gas and liquid EFM
upon commissioning and immediately after any change to the computer
program or algorithms that affects the flow calculation. A copy of the
evaluation must be submitted to the Penn West PMC, along with a copy of
the initial calibration or proving report.

13.7 Measurement Schematics

All receipts points and/or facilities that deliver into a Penn West facility shall
have a measurement schematic created by Penn West that will be charged
back to the producer. Access to site must be provided for this purpose.

14.0 Environment, Health, and Safety

14.1 All work on Penn West leases and/or rights-of-way shall comply with
Penn West Safety Policies and Codes of Practice.

14.2 All Producer personnel (including Producers contractors and sub-


contractors) that will be working at Penn West leases, and/or rights-of-
way, shall attend a Penn West worksite orientation in accordance with
Penn West safety practices and procedures.

14.3 A pre-job meeting for Producer personnel (including Producers


contractors and sub-contractors) shall be held daily for work that will be
conducted at Penn West owned facilities and shall be conducted prior to
the initiation of any work. Applicable, Penn West safety requirements and
Codes of Practice shall be reviewed and adhered to.

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Penn West - Third-Party Tie-ins - Producer Guidelines

14.3.1 All pre-job meetings shall be documented including the


names of all who are in attendance.

14.4 All work conducted at Penn West-owned facilities shall be performed


under a Work Permit issued or renewed daily by Penn West.

14.5 Producer shall immediately notify Penn West in the event of an incident
and, at the latest, such notification must be provided the same day as the
incident has occurred. It is the responsibility of the Producers to notify the
appropriate authorities.

14.5.1 All incidents, including conversations, meetings and


telephone calls shall be documented.

14.5.2 Producer shall provide to Penn West for each incident, a


written description of what occurred, outlining the contributing
factors.

15.0 Construction

15.1 Penn West reserves the right to perform any or all work on Penn West
leases and/or rights-of-way.

15.2 Penn West reserves the right to approve any contractors who will perform
work on Penn West controlled sites.

15.3 No work shall be undertaken on a Penn West lease and/or right-of-way


until:

15.3.1 Penn West has granted approval to proceed.

15.3.2 A Contract Operating Agreement has been executed if


required.

15.3.3 A Processing Agreement has been executed if


required.

15.3.4 A Marketing Agreement if required.

15.3.5 A Transportation Agreement if required.

15.3.6 All applicable Crossing, Encroachment, Proximity


agreements have been executed.

15.3.7 A regulatory approved Emergency Response Plan has


been supplied if required.

15.3.8 Appropriate work permits from Penn Wests field office.

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Penn West - Third-Party Tie-ins - Producer Guidelines

15.4 If there is work on Penn West leases and/or rights-of-way that


the Producer will be responsible for executing, the Producer shall arrange
for a Penn West Construction Supervisor to oversee the work, PWE-02
Construction Supervisor Request. No work occurs without Penn West
supervision or on-site approval.

15.5 All construction on Penn West leases and/or rights-of-way


shall be done under the supervision of a Penn West Construction
Supervisor.

15.5.1 Penn West Construction Supervisors will be supplied on a best


effort basis and Penn West will bear no costs associated with
any delays caused by the unavailability of a Penn West
Construction Supervisor.

15.5.2 Producer shall provide notification of the commencement of


field work to Penn West field office a minimum of 7 days prior
to initiating field work.

15.6 A pre-job meeting shall be held prior to the initiation of any work.

15.6.1 Applicable Penn Wests safety requirements and Codes of


Practice shall be reviewed.

15.6.2 All pre-job meetings shall be documented including the names


of all who are in attendance.

15.7 Producer shall coordinate a construction kick-off meeting a


maximum of 72 hours prior to commencement of work on Penn West
lease and/or right-of-way. As a minimum this kick-off meeting shall
include representation from Penn West Operations and the Penn West
Construction Supervisor that will be responsible for overseeing the work.

15.8 The Producer shall have on hand the following information:

15.8.1 Copy of the contractors safety manual.

15.8.2 Copy of the regulatory permit for the line


being installed and the facility being tied into.

15.8.3 Copy of the approved tie-in drawings,


applicable Penn West specifications and procedures.

15.8.4 Welder Qualification Test (Standard Test Radiograph Record).

15.8.5 Copy of Welder Qualification.

15.8.6 Welder Qualification Test (Destructive Test Record) if applicable.

15.8.7 Welder Log.

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Penn West - Third-Party Tie-ins - Producer Guidelines

15.8.8 Radiograph Technician Record.

15.8.9 Copy of Test Equipment calibration records.

15.8.10 For pipelines, a copy of CSA Z662-99 Weld Procedures.

15.8.11 For facilities, a copy of an approved quality control plan and


registered ASME Section IX welding procedures.

15.8.12 NDE Technician Qualifications/Record.

15.9 All Producer personnel shall attend a Penn West worksite orientation.

15.9.1 The worksite orientation shall consist of a review of Penn


Wests Health, Safety and Environment Handbook and of the
site specific safety, environmental requirements and a review
of the work to be conducted and job-site conditions.

15.9.2 The events of the orientations shall be documented.


Attendees shall be provided with a copy of Penn Wests
General Safety Handbook.

15.10 Tie-ins to existing Penn West pipelines shall be cold cuts unless
approved otherwise by Penn West.

15.11 Producers shall conduct all ground disturbances in accordance with Penn
Wests Ground Disturbance procedures.

15.11.1 Producers on-site supervisory personnel shall have


successfully completed a Ground Disturbance training course
from a recognized agency approved by Penn West.

15.11.2 Proof of Ground Disturbance training shall be provided to


Penn Wests field representative prior to commencement of
work.

15.12 Producer is responsible for coordinating with Penn West Electrical,


Instrumentation and Control staff for any controls or SCADA interfaces
back into the Penn West area controls/information gathering systems.

15.13 Producer shall supply Penn West with as built drawings of


the tie-in facilities on Penn West leases and/or rights-of-way within 30
days of completion of construction. Drawings to be submitted to the Penn
West JV Representative.

15.14 Producer shall supply Penn West with a copy of the Quality
Control documentation for those portions of the facilities on Penn West
leases and/or rights-of-way that are on Penn West side of the custody
transfer point within 30 days of completion of construction.

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Penn West - Third-Party Tie-ins - Producer Guidelines

16.0 Commissioning

16.1 Unless agreed otherwise, the Producer is responsible for commissioning


their equipment.

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Penn West - Third-Party Tie-ins - Producer Guidelines

Appendix 1 - Available Penn West General Specifications

ME.S.001 Pressure Vessel/Shell and Tube Heat Exchanger

ME.S.002 Reciprocating Compressor

ME.S.003 Dehydrator

ME.S.004 Line Heater

ME.S.005 Positive Displacement Pumps

ME.S.006 Air Compressor

ME.S.007 Fire tube and Burner Controls

ME.S.008 Piping

ME.S.010 Valves

ME.S.011 Insulation and Tracing

ME.S.012 Painting

ME.S.013 Internal Coating

JE.S.001 Tubing

CE.S.001 Structural Steel

CE.S.002 Steel Buildings

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Penn West - Third-Party Tie-ins - Producer Guidelines

Appendix 2 Acceptable Piping Tie-in Configurations

Acceptable Pipeline Tie-in Configurations


Type of Production H2S Content Tie-in Connection
U/G Tie-in A/G Tie-in A/G Tie-in Cut-in Cut-in Camel
c/w Block c/w Block Barred Barred Tee Back
Valve Valve & Tee with A/G Installed in
ESD Valve without Vertical Main Line
Riser Riser
Dehydrated Gas sweet (includes F/G) X* X X X X X
sour < 1% H2S X X X
sour > 1% H2S X X
Dehydrated Gas / Condensate sweet X X X X
sour < 1% H2S X X X
sour > 1% H2S X X
Gas / Condensate / Produced Water sweet X X X X
sour < 1% H2S X X X
sour > 1% H2S X X
Multiphase Oil sweet X X X X
sour X X X
Produced Water sweet X* X X X ** X ** X
Fresh Water sweet X* X X X X X

Notes:
1. X * - Reviewed on an individual basis.
2. X ** - HDPE Lined Pipe - Requires flanged and coated tee, and new section of liner to be pulled to next flange each side of
tie-in point (fusing of HDPE flanges onto existing pipe is not allowed).
3. ERCB pipeline regulations require that dead-legs be removed within one year of becoming inactive unless the licensed
operator can annually prove that they are not affecting the integrity of the line.

Figure 1: Cut-in Barred Tee Without Riser

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Penn West - Third-Party Tie-ins - Producer Guidelines

Appendix 2 Acceptable Piping Tie-in Configurations

Figure 2: Cut-in Barred Tee with Above Ground Vertical Riser

Figure 3: Camel Back Installed in Mainline

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Penn West - Third-Party Tie-ins - Producer Guidelines

Appendix 3 - Penn West Forms

Rev 3 June 2012 28

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