July 2015

For the latest on Merichem careers

Follow Merichem on Social Media

@MerichemCompany

www.merichem.com/careers
b u i l t
Jana Miller, Intergraph, USA, highlights
the importance of well designed tanks
for safe energy distribution.
 t o
T
he recent earthquake tragedy in Nepal brings into
sharp focus the importance of engineering and
building codes for buildings and facilities and their
enforcement. Even with some of the most stringent
regulations in the world, the outcome in such extreme situations
can be catastrophic. However, this in no way reduces the
importance of employing appropriate standards when
engineering and designing buildings and industrial facilities.
Oil storage tanks are no exception. Storage tanks in refineries
and chemical plants contain large volumes of flammable and
hazardous chemicals. A small accident may lead to multi million
dollar property losses, days of lost production, and weeks and
months of investigations. Larger accidents could also spark
permanent shutdowns, ongoing lawsuits, stock devaluations, or
company bankruptcies. But whatever the size of the incident, the
l a s t
Conwy castle in Wales.
most deeply felt and impactful are those that cause injury or loss
of life.
That is why when it comes to the construction of steel
aboveground storage tanks, designers and engineers must follow
a number of stringent guidelines and regulations that have
evolved over the years. These standards have been updated a
number of times. Most companies follow those standards and
guidelines, but tank accidents and failures still occur. Things
could certainly be better.
Worldwide petroleum
consumption trends
Even with the current slowdown in exploration, indications show
that petroleum consumption is still strong. As demand has
declined in the last few months, it has placed increased pressure

Figure 1. Even with the current slowdown in
exploration, the need for steel aboveground
storage tanks remains high.
Figure 2. The transport and storage of crude oil
and petroleum products is critical to support local
demands.
on existing storage facilities that, around the world, are reaching
some of their highest capacities ever. Therefore, the need for
steel aboveground storage tanks will remain high.
A 2014 report by the US Department of Energy found that
from 1980 - 2013, overall world petroleum consumption grew
from 63 to 90 million bpd. Although petroleum consumption in
the US and Europe has declined since 2007, this is offset by
growing consumption from the rest of the world. China has seen
a rapid increase in petroleum consumption over the last decade
while India has experienced a gradual rise in petroleum
consumption. Not including the US, Europe, China, and India,
petroleum consumption by the rest of the world rose by 12.4%
from 2008 - 2013.
In 2014, approximately 27% of the petroleum consumed by
the US was imported from foreign countries, the lowest level
since 1985, according to the US Energy Information
Administration. Most of Europe is even more dependent upon
imported crude oil, as are the large industrialised and
industrialising economies of Asia such as Japan, China and India.
Meeting global demands at a
local level
Due to the wide variation between the locations of production
and the locations of heavy demand for crude oil and petroleum
products, the transport and storage of crude oil and petroleum
HYDROCARBON
Reprinted from July 2015 ENGINEERING
products is critical to ensuring that the product gets to where it
is needed at the time it is needed. Billions of barrels of crude oil
and petroleum products are transported to meet this demand.
Steel aboveground storage tanks are a key link in the energy
transportation system, a system that ensures adequate supplies
reach the locations of demand when needed. Yet tanks are
sometimes taken for granted and their important roles in
distribution not well understood. Often hidden from view in
industrial locations, tanks play vital roles at key stages of getting
the product from source to the end user, and they handle large
amounts of product.
Storage tanks may be located at a tank farm, a terminal used
for transport purposes, a gathering system near a production
site, or a refining operation. These facilities interconnect with
modes of bulk liquid carriers such as oceangoing tank ships, tank
barges, tank trucks, tank rail cars and pipelines.
Key engineering standards for
the tank industry
Organisations such as American Petroleum Institute (API),
American Institute of Chemical Engineers (AIChE), American
Society of Mechanical Engineers (ASME), and National Fire
Protection Association (NFPA) publish engineering guidelines and
standards for the construction, material selection, design and
management of storage tanks and related facilities.
In 1922, Underwriters Laboratories created the first US
standard for aboveground storage tanks. UL 142: Steel
Aboveground Tanks for Flammable and Combustible Liquids was
created to provide standards that people could trust and
facilities that insurance companies would insure. Formed in 1919,
API developed its first standard, which was API-12A for steel
aboveground storage tanks with riveted shells. In 1935 API-12C
was issued for welded oil storage tanks. The transition from
riveted to welded tanks was slow at first, due in part to suspicion
regarding variable weld quality at the time.
By 1951 API-12C was superseded by API Standard 650, which is
still the standard for designing new tanks in much of the world
today. Welded tanks for oil storage fall under API 650. This
standard establishes the minimum requirements for material,
design, fabrication, erection and testing of vertical, cylindrical,
aboveground, closed and open top welded carbon or stainless
steel storage tanks. The sizes and capacities vary although
internal pressures approximate atmospheric pressure. This
standard applies only to tanks whose entire bottom is uniformly
supported and to tanks in non-refrigerated service. Appendix M
of the code allows design temperatures of up to 260˚C (500˚F).
Another standard for storage tanks, API 620, covers low
pressure (up to 15 psig), cylindrical and non-cylindrical tanks and
capabilities for low temperature operation. The API 653 standard
covers the inspection, repair, alteration, testing and rerating of
tanks after they have been put in service. It provides the
minimum requirements for maintaining the integrity of welded
or riveted, non-refrigerated, atmospheric pressure, aboveground
storage tanks.
Multiple causes of tank failure
Most oil storage tank damage is attributable to age
deterioration, corrosion and, in some locations, seismic motions.
Oil storage tanks deteriorate with the passage of time due to
rust, fatigue or cracks. Many tanks are subject to harsh
environments because they are near the seashore and a saltwater
environment, and the loads of continuous charging and
discharging add to the wear. Damage can lead to leakage of a
hazardous material, disastrous fires and environmental damage.
In March 2015, an aboveground storage tank located in
Sunnyside, Washington, leaked as much as 1500 gal. of used
motor oil into a creek that flows into the Yakima River, a water
source crucial to the state’s agricultural status as an apple
growing hub.
At the time of writing, the cause of the spill is still under
investigation. Evidence of the leak was found in the water as far
as 15 miles away from the site. The state Department of Ecology
warned that the leak was a major threat to the area’s hundreds of
species of otters, beavers, waterfowl, and fish, as well as its apple
orchards and other crops.
A study by Elsevier (©2006 Elsevier Ltd) reported on an
analysis of storage tank accidents using information collected
from published reports from March and Mclennan and Persson
and Lonnermark; books by CPC, Pekalski, and Lees; CSB incident
news; and databases from UQ, ICHemE, PAJ, and USNOAO. The
study analysed accidents at 242 bulk oil storage tanks over the
past 40 years. These tanks were located throughout the world,
storing such materials as crude oil, gasoline, fuel oil, and diesel.
The most common type of tank in the study was the
atmospheric external floating roof tank followed by the
atmospheric cone top tank.

Tank accidents
The Elsevier study reported that 47.9% of storage tank accidents Figure 3. Proper roof design is vital for safe and
and failures were at petroleum refineries. Next were terminals efficient tank operations.
and pumping stations with 26.4%, petrochemical plants at 12.8%
and oilfields at 2.5%. Other types of industrial facilities such as
power plants, gas plants, and pipelines comprised the remaining
10.3%. These accidents were caused by lightning, human error,
poor maintenance, equipment failure, sabotage, crack and
rupture, leak and line rupture, static electricity and open flames.
Human errors were involved in 30% of the accidents, including
such things as substandard operations and poor maintenance.
Fire and explosion occurred in 85% of all accidents, presenting a
major risk to property and lives.
In April 2015, lightning struck an aboveground storage tank
used for wastewater at a hydraulic fracking operation in Greeley,
Colorado. After the lightning strike, several explosions were
heard and a fire broke out. One of the aboveground storage tanks
was launched into the air by the force of an explosion.
The liquid storage tanks at the site contained wastewater
from the fracking process that contained some oil and gas. This Figure 4. As energy demands shift globally,
combination of oil and gas in the water in addition to any vapour production and transportation services must
from the mix is likely why the explosions and resulting fire were address these changing needs.
so powerful.
Due to the flammable contents of the tanks, the flames and
potential for additional explosions were too dangerous for in 2002 dollars. This would be approximately US$150 million in
firefighters to immediately address. After the blaze settled down, 2015 dollars. The largest accident in the study occurred in 1986 in
the local firefighters used fire suppression foam on the area to Greece when sparks from a flame cutting torch ignited fuel from
fully extinguish the fire. Luckily the site was in an open field away a tank spill in the dike of the tank facility. The fire spread and
from residential areas, so only three houses were evacuated and destroyed 10 of the 12 crude oil tanks. Another major accident
no damage to homes occurred. occurred in 1968 in the Netherlands when frothing in a hot oil
According to the Elsevier report, the average property loss of and water emulsion reacted with volatile material, causing a fire
the 10 largest storage tank damage incidents was US$114 million that destroyed a hydrocarbon and sulfur plant and 80 storage

HYDROCARBON
ENGINEERING Reprinted from July 2015

Figure 5. Tank design must follow many stringent
guidelines and regulations.
Figure 6. Intergraph TANK enables accurate design
of new storage tanks and checks fitness of service
for existing tanks.
tanks. In 1978 in Texas City, Texas, a tank failure caused a leak that
ignited, destroying 11 tanks. Many accidents could have been
avoided through good engineering practices.
Failing tank roofs
Among the equipment failure accidents in the report, 11 cases
involved a sunken roof. The typical external floating roof tank
has an open topped cylindrical steel shell with a roof that floats
HYDROCARBON
Reprinted from July 2015 ENGINEERING
on the surface of the stored liquid. A seal system around the
floating roof’s perimeter reduces evaporation of the stored
liquid. As the liquid level in the tank is raised or lowered, the
roof floats with the changing level and the seal system slides
against the tank wall. If the roof is out of balance or the tank
body distorted, it may not function properly. Floating roofs can
also sink after a heavy storm due to inadequate drainage,
allowing flammable vapours to be ignited by lightning or static
charge.
When designing a tank with a simple cone roof, the
calculation is very simple. However, large span roofs require a
supporting structure. Otherwise they would collapse under their
own weight. This presents a structural problem. To calculate
what sort of structure would support the roof, the engineer
would have to make several trial calculations, a process that can
be very time consuming. A conventional structure is comprised
of ring girders and rafters supported by columns. When designing
a roof today, appropriate software is considered to be required
by many designers and engineers. Intergraph® TANK™ is one of
the most widely used programmes for tank design and
engineering analysis. The software delivers accurate and quick
results on complicated issues such as roof design and tank
structure.
Ageing tanks edge closer to
failure
Another ongoing challenge for the industry is the ever increasing
age of existing storage tanks. According to the US Environmental
Protection Agency (EPA), steel aboveground storage tanks begin
to deteriorate at 15 years of age. An API study some years ago
estimated that 90% of aboveground steel storage tanks in the US
were already over 11 years old, so the proportion of aging tanks
today is even higher. In the marketing, refining and transportation
sectors, approximately 75% of tanks are over 20 years old,
according to industry estimates.
In 1988, a storage tank collapsed at the Ashland Oil facility in
Floreffe, Pennsylvania, spilling 3.7 million gal. of diesel fuel, some
of which found its way into the Monongahela River, covering the
water and river ice with diesel. The tank, built in 1940, had been
disassembled and reassembled at the site in 1987. When finished,
the tank was 50 ft high and 120 ft in diameter, with a surrounding
dike that would hold 150% of the tank capacity. The welds were
Xrayed and leak tested, and the results indicated that none of
the welds needed rework. However, the tank failed
catastrophically, without warning, creating a tidal wave with at
least 500 000 gal. of diesel ending up in the river, causing a major
environmental problem so severe that the entire water supply of
South Pittsburgh had to be shut down for two weeks. The
investigative team determined that the failure was caused by an
undetected flaw in the base metal of the original tank, rather
than the actual welds, as had been considered initially as a
possible cause. Ambient conditions as well as pressure from the
filled tanks caused this flaw to yield catastrophically.
In 1990, an Amerada Hess storage tank holding 6 million gal.
(22 700 m3) of No. 6 oil failed in Perth Amboy, New Jersey, with a
lake of oil soon covering the ground. This failure was caused by
the collapse of an underground piling supporting a portion of
the wall. An open valve on the inside of the surrounding
concrete safety wall combined with a malfunctioning valve on
the outside allowed 5000 gal. (19 m3) to reach the Arthur Kill
Waterway. This incident was caused by a ‘perfect storm’
combining structural, maintenance, and human failures.

TANK
Automating design and analysis TM
There is no way to totally prevent tank failure, but there are
prudent steps that can help reduce the risk. Software such as
Intergraph TANK helps owner operators follow industry
standards and make their aboveground storage tanks safer over Analysis & Design
the facility lifetime. Intergraph TANK enables engineers to
accurately design new storage tanks and check fitness of service
for existing tanks.
Industry tested for the last 20 years, TANK performs all of
the analysis for wind loading and seismic loading. TANK
supports the important API 650 and 653 standards. Plus,
international databases for structural steel members are also
offered.
Visualisation tools provide 3D interactive graphics that show
not only the exterior of the tank but also the interior with the
structural steel members that hold up the roof. If the owner
needs to do any work in the tank, they have a 3D model to see
how the structure is built on the inside of the tank. Sections and
cutaways help users better visualise the tank for improved
safety and faster inspections.
Design graphics promote quality assurance by enabling users
to verify that their input was correct. TANK offers code
equations and substitutions with the members plugged in so
users can see how the software arrived at its answers to more
easily verify the calculations. Having that piece of information VISUALIZE
ANALYZE
on tap makes it very convenient for staff members to review
these calculations and consult this information in years to come.
TANK provides 3D PDF capability for better reporting to

DESIGN
stakeholders. The PDF can contain bookmarks along with
navigable 3D graphics so that everyone on the team understands
the tank’s structure, inside and out. This helps ensure safety for

SHARE
personnel, the facility, and the environment for years to come.

Conclusion
The engineering, procurement and construction companies
(EPCs), owners, and operators of tank storage facilities will
require the most cutting edge tools available as they are faced
with the challenges of designing and engineering tank facilities Intergraph TANK allows engineers
® TM

in new environments and locations in the future, as energy to quickly and accurately design new
demands shift globally and production and transportation storage tanks and check tness of
services seek to address this demand. service for existing tanks.
Many of the newer tank facilities that will be needed for
storing product in transit will be in the midst of large and • 3D interactive graphics
growing population centres in Asia and elsewhere. The • Reporting with 3D PDFs
engineering challenges will be many. Stringent environmental • API 650 and 653
protections will be required to ensure the maintenance of • Equations and substitutions
supplies of potable water and food plus a safe environment for • Quality assurance
so many people living nearby. All of these issues must be • Sections and cutaways
considerations as the industry attempts to meet and keep up • Easy-to-use interface
with the world’s growing and shifting demands for energy and • Dependable accuracy
the storage facilities that will be required.
www.intergraph.com/go/tank
Notes
1. All photos by Genevieve N. Bruce of Heartland Tank Services, Inc.

©
2015 Integraph Corporation. All rights reserved. Intergraph
is part of Hexagon. Intergraph and the Intergraph logo are
registered trademarks of Intergraph Corporation or its subsidiaries
in the United States and in other countries.