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2017 Award Nomination Title of Innovation: New Approach to Pipeline Integrity

Nominee(s) U.S. Water’s Energy Services Team Category: (select one below) Coatings and Linings Instrumentation Cathodic Protection Testing Materials Design Integrity Assessment Chemical Treatment Other—fill in

Dates of Innovation Development: 2011 – 2015. New chemical formulations and analytical capabilities and reports were developed from 2012 – 2015. Commercialization occurred in 2015 and 2016.

Web site: www.uswaterservices.com

Summary Description: Midstream Oil and Gas pipelines are wasting millions of dollars each year on traditional internal

corrosion programs. Even with a corrosion program in place, these pipelines still suffer from corrosion.

U.S. Water’s new approach to pipeline integrity combines innovative multi-functional chemistries,

mechanical pigging and automation in a new way to get and keep the pipeline clean and corrosion

essentially eliminated. This process is combined with industry leading monitoring to ensure integrity is

maintained.

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Full Description:

(Please provide complete answers to the questions below. Graphs, charts, and photos can be

inserted to support the answers.)

1. What is the innovation?

A new approach to pipeline integrity, combining chemical, equipment, automation and monitoring in a

unique program that allows the pipeline operator to identify the root cause of their corrosion issues,

clean up the system while mitigating risk, and keep the system clean with a transparent maintenance

plan. U.S. Water’s integrated approach will lower operating costs, increase profitability, and reduce

personnel and environmental risks.

2. How does the innovation work?

This integrated approach combines a custom chemistry treatment with a mechanical, pigging program

to get pipelines bare metal clean. Innovative chemistries combining filming amines with cleaners, scale

inhibitors, oxygen scavengers, etc. are inserted into the line to remove the debris from the pipe wall.

Once suspended in the system, a spreader pig can be used to move the debris to the end of the line. To

ensure the system is bare metal clean, chemical batch treating and brush pigging is done in intervals

until the pig comes out of the system clean.

Once the pipeline is bare metal clean, a combined approach of monitoring technology and pumping

systems can be used to optimize the chemical and inhibitor program to keep the system clean. Sampling

and testing can again be utilized when determining the system’s ideal chemical program and to ensure

operators are not over or under-treating the system. It is important to also continue to kill/prevent

bacteria so it does not corrode the pipe or create corrosion bi-products that deposit further down the

line.

3. Describe the corrosion problem or technological gap that sparked the development of the

innovation? How does the innovation improve upon existing methods/technologies to

address this corrosion problem or provide a new solution to bridge the technology gap?

The standard industry pipeline treatment method is to apply a corrosion inhibitor directly over the

debris (crude/iron debris, etc). Operators then follow up by batch treating biocide to eliminate

Microbiologically Induced Corrosion (MIC). Often, a pigging treatment will follow the chemical program.

Corrosion inhibitors work best when they are able to attach to bare metal clean pipelines and create a

film to prevent under-deposit and sessile corrosion sites. Equally, a biocide treatment is most effective

when it is able to reach the planktonic bacteria hiding underneath the under-deposit corrosion. If the

chemical program application does not address the sessile colonies, corrosion is still able to cause pitting

damage to the pipeline. Pigging the pipeline without removing the debris out of the system just smears

the debris around the pipe, similar to waxing a car without washing it first.

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Introduced in 2015, the Pipeline and Hazardous Materials Safety Administration (PHMSA) regulated

Pipeline Modernization and Consumer Protection Act requires gas pipeline facilities to follow best

practice guidelines to identify and classify high risk pipeline infrastructure and leaks for repair or

replacement. In Line Inspections (ILI) are used by the PHMSA to identify pipeline wall loss based on

pitting corrosion rates. This data is then used to predict general wall pipe loss and develop any repair or

replacement plans needed prior to leak or environmental disaster. Clean pipeline systems ensure

accurate ILI data.

4. Has the innovation been tested in the laboratory or in the field? If so, please describe any

tests or field demonstrations and the results that support the capability and feasibility of the

innovation.

See attached case studies:

Gas Plant Saves Thousands in Compressor Repairs with Unique Chemistry

Preventing Condensate System Fouling with U.S. Water’s Integrated Solutions

5. How can the innovation be incorporated into existing corrosion prevention and control

activities and how does it benefit the industry/industries it serves (i.e., does it provide a cost

and/or time savings; improve an inspection, testing, or data collection process; help to

extend the service life of assets or corrosion-control systems, etc.)?

Deposits, microbiological activity, and corrosion are all inextricably linked in their effect on pipeline

asset integrity, reliability, and transport efficiency. In the end, it all translates to financial performance,

environmental stewardship and human safety.

Ineffectively treating corrosion can result in unscheduled downtime, expensive waste disposal,

increased operating costs, and even pipeline rupture. Advancements in testing capabilities, chemistries

and cloud-based technologies have given operators the tools needed to develop a complete integrated

approach for corrosion control and pipeline integrity. A new integrated approach to pipeline integrity

management combines industry best practices to achieve and maintain a clean pipeline. As a result,

producers will experience maximized profitability, improved final product and a system protected from

environmental catastrophes.

6. Is the innovation commercially available? If yes, how long has it been utilized? If not, what

is the next step in making the innovation commercially available? What are the challenges, if

any, that may affect further development or use of this innovation and how could they be

overcome?

Since 2011, U.S. Water’s Energy Services team has been supporting the oil and gas industry. The Energy

Services team is dedicated to focusing on innovative, engineered solutions for the oil and gas industry

that get at the root cause of problems – finding and eliminating them at their source. From start to

finish, our system integrity program allows us to identify and monitor areas that are most exposed to

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risk, map the pipeline, perform risk mitigation analysis on production, and introduce best practices to

ensure successful management of pipeline integrity programs. With product development and field

trials throughout 2015 and 2016, we were able to bring this approach to commercialization.

7. Are there any patents related to this work? If yes, please provide the patent title, number,

and inventor.

No patents.

(© July 2016)

CASE STUDY

Gas Plant Saves Thousands in Compressor Repairs with Unique ChemistryA midstream gas plant in Texas was experiencing severe black powder fouling resulting in compressor, valves and piston failure of two of their compressors every week. Valve and piston repairs were costing $11,200 each, and plant was paying approximately $1,164,800 in repairs annually. Compressor repairs were costing $3,400 a week in manpower, equaling an additional $176,800 a year. This was not sustainable, and the plant looked to U.S. Water’s experienced Energy team for a system solution.

The plant has experienced a reduction in unscheduled down-time.

U.S. Water’s unique chemistry, combined with automation and monitoring, allowed the plant to get, and keep, their system clean.

Plant saved $22,400 a week in compressor repair costs, or $1,164,800 a year.

U.S. Water’s solution ROI is approximately 400%, with a 2 month payback.

SYSTEM ACHIEVEMENTS

After U.S. Water representatives conducted a plant survey, they discovered the plant was experiencing unscheduled compressor downtime, resulting from the formation of black powder. The black powder was causing backpressure on the second stage with valve noise, indicating eminent unscheduled compressor downtime and weekend repairs.

Black powder is an industry term used for black/brown/grey colored deposits within gas systems. It can be composed of pure iron sulfide or any combination of FeS, FeCO2, FeO species or oxides with glycol, salt, condensate, sand, amines and compressor oils. During one of the compressor repairs, U.S. Water representatives sent samples of the black deposit to the analytical laboratory to identify the exact makeup of the deposit.

The U.S. Water’s Energy team’s first recommendation was to conduct a trial antifoulant chemistry on the

second stage compressor inlet to remove the blockage and measure the debris concentration located in the gas streams. The results from the debris analysis allowed U.S. Water to formulate a custom inhibitor package for the two separate trains. Working together with the Engineering & Equipment team, chemical feed equipment was designed to allow the plant to deliver the antifoulant by atomization throughout the entire system. Paired with targeted monitoring technology, U.S. Water’s solution allowed the plant to get, and keep, the system clean and then optimized the chemical costs.

Since the plant introduced U.S. Water’s solution into their system, one compressor has been running uninterrupted, and other has been on a six month run. In addition to continuous production, the plant was able to save $670,800. The plants Return on Investment (ROI) is approximately 400%, with a two month payback.

U.S. Water 12270 43rd Street NE St. Michael, MN 55376(P) 1-866-663-7633 (F) 763-553-0613 www.uswaterservices.com

(© July 2016)

CASE STUDY

Preventing Condensate System Fouling with U.S. Water’s Integrated SolutionsDue to product scale and buildup, a midstream Natural Gas Liquids (NGL) plant was changing their filters every three days, as well as conducting heat exchanger cleanings eight times a year. This redundant maintenance was costing the plant approximately $206,000 a year. While conducting a plant survey, U.S. Water representatives recommended a new solution to resolve their perpetual issue.

Plant efficiency increased now that personnel are no longer conducting redundant filter changes.

U.S. Water’s unique chemistry, combined with automation and monitoring, allowed the plant to get, and keep, their system clean.

Plant saved approximately $195,400 annually in costly filter changes and heat exchanger cleanings.

U.S. Water’s solution ROI is approximately 350%, with a two month payback.

SYSTEM ACHIEVEMENTS

This unique NGL plant processes off-spec product for operators throughout the country. Dealing with the contaminants and debris from the off-spec product propelled excessive filter plugging, exchanger fouling and cleanings. If the plant did not change the filters regularly or conduct exchanger cleaning, the debris could foul the condensate stabilizer and result in additional unscheduled plant downtime.

After conducting on-site debris testing, U.S. Water’s Energy team recommended a proprietary chemical additive formulated to dissolve and inhibit iron scales, to be used upstream of process equipment. Integrated automation equipment and engineering testing were implemented to deliver and monitor the treatment program as trucks were being off-loaded by monitoring Differential Pressure (DP) across the filter housings and heat exchanger.

Since the plant introduced U.S. Water’s solution into their system, the existing pipeline build-up began to detach and fluidize. Filter changes have reduced from every three days, to every six weeks, saving the plant $157,000 annually. The heat exchanger cleanings have also been reduced, as the unit has not yet required any cleanings, saving the plant approximately $38,400. The plant’s total ROI to implement the U.S. Water solution is 350%.

Engineered services include:• deposition monitoring• pitting corrosion monitoring• total suspended solids monitoring• bacteria testing• deposit analysis

U.S. Water 12270 43rd Street NE St. Michael, MN 55376(P) 1-866-663-7633 (F) 763-553-0613 www.uswaterservices.com