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Allied Horizontal Wireline Services Revision Date: 30-Jul-14 Revision 2.1 Page1 EXPLOSIVES STANDARD (STANDARD 4) – AHWS-S04-EXP Standard Objective: The creation, distribution, and adherence to the Explosives Standard (AHWS-S04-EXP) are to satisfy 4 primary objectives. 1) To protect our employees and limit / mitigate any situation from creating an explosives hazard. 2) To educate our employees to the risks associated with the use of explosives in our operations. 3) To ensure compliance with all governing bodies with regards to explosives including BATFE, DOT, PHMSA, OSHA, and state regulations for specific states where sub or separate licensing is required (PA, LA, etc.) 4) To satisfy client requirements, to educate our clients, and to assist with the safe operating environment at the wellsite. The use of explosives to perforate well bores, or to assist in down-hole functions and remediation, is a normal part of oilfield wireline operations. The traditional methods for allowing communication between the wellbore and the formation through pipe or tubing are through the use of explosives and shaped charges. All explosives pose a danger to personnel which can only be controlled through the safe use and safe operating procedures. The overall guidance for oilfield explosives use is through the recommended practices from API RP-67 (Recommended Practice for Oilfield Explosives Safety). This standard will aim to reduce associated risks of handling, transporting, using, and storing explosives as they relate to oilfield perforation services. This standard should serve as a guide and shall not constitute a replacement for the official rules, regulations, and procedures set forth by government agencies and compliance groups. Personnel Requirements and Training: All personnel within Allied Horizontal Well Services (AHWS) will receive documented training and will undergo specific background screening and checks. The background checks and training requirements are specific to each employee position type. For regions or districts that do not use, store, or come in contact with explosives, the training may be adjusted accordingly and the employees may be exempt from the standards protocol. There are 3 levels of formalized training. Level 1 training consists of general explosives information that will be given to all employees. Level 1 is a permanent training given when an employee is hired and is given during the orientation process. Level 2 training is given to all personnel who will be handling explosives and similar to Level 1 training. Level 2 training will be given every year for each of these employee types, and will be followed by a test for competency and understanding. Level 3 training is a hands on certification for field employees. This hands-on certification involves a manager who will verify that the engineer, operator, and/or explosive users in charge are following safe operating procedures. These procedures, including AHWS Explosives Field Safety Practices are a direct descendent from API RP-67. An explosive certified crew indicates that the crew leaving for the job has the proper knowledge and training to perform explosives operations at the wellsite. Crews that are un-certified, or have their certificates expired, will not be permitted to perform wellsite explosives operations. To be an explosives certified crew, 100% of the members must have completed level 1 or level 2 (if applicable) training. The engineer in charge must have level 3 training. Testing and Certification levels are summarized in Table 1.

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Page 1: EXPLOSIVES STANDARD (STANDARD 4) AHWS-S04-EXP...EXPLOSIVES STANDARD (STANDARD 4) – AHWS-S04-EXP Standard Objective: The creation, distribution, and adherence to the Explosives Standard

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EXPLOSIVES STANDARD (STANDARD 4) – AHWS-S04-EXP

Standard Objective:

The creation, distribution, and adherence to the Explosives Standard (AHWS-S04-EXP) are to satisfy 4 primary objectives.

1) To protect our employees and limit / mitigate any situation from creating an explosives hazard.

2) To educate our employees to the risks associated with the use of explosives in our operations.

3) To ensure compliance with all governing bodies with regards to explosives including BATFE, DOT, PHMSA, OSHA,

and state regulations for specific states where sub or separate licensing is required (PA, LA, etc.)

4) To satisfy client requirements, to educate our clients, and to assist with the safe operating environment at the

wellsite.

The use of explosives to perforate well bores, or to assist in down-hole functions and remediation, is a normal part of oilfield

wireline operations. The traditional methods for allowing communication between the wellbore and the formation through

pipe or tubing are through the use of explosives and shaped charges. All explosives pose a danger to personnel which can only

be controlled through the safe use and safe operating procedures. The overall guidance for oilfield explosives use is through

the recommended practices from API RP-67 (Recommended Practice for Oilfield Explosives Safety). This standard will aim to

reduce associated risks of handling, transporting, using, and storing explosives as they relate to oilfield perforation services.

This standard should serve as a guide and shall not constitute a replacement for the official rules, regulations, and procedures

set forth by government agencies and compliance groups.

Personnel Requirements and Training:

All personnel within Allied Horizontal Well Services (AHWS) will receive documented training and will undergo specific

background screening and checks. The background checks and training requirements are specific to each employee position

type. For regions or districts that do not use, store, or come in contact with explosives, the training may be adjusted

accordingly and the employees may be exempt from the standards protocol.

There are 3 levels of formalized training. Level 1 training consists of general explosives information that will be given to all

employees. Level 1 is a permanent training given when an employee is hired and is given during the orientation process. Level

2 training is given to all personnel who will be handling explosives and similar to Level 1 training. Level 2 training will be given

every year for each of these employee types, and will be followed by a test for competency and understanding. Level 3

training is a hands on certification for field employees. This hands-on certification involves a manager who will verify that the

engineer, operator, and/or explosive users in charge are following safe operating procedures. These procedures, including

AHWS Explosives Field Safety Practices are a direct descendent from API RP-67.

An explosive certified crew indicates that the crew leaving for the job has the proper knowledge and training to perform

explosives operations at the wellsite. Crews that are un-certified, or have their certificates expired, will not be permitted to

perform wellsite explosives operations. To be an explosives certified crew, 100% of the members must have completed level 1

or level 2 (if applicable) training. The engineer in charge must have level 3 training. Testing and Certification levels are

summarized in Table 1.

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TABLE 1: Explosives Training and Certification

Level Employee Type Materials Taken When Validity

Level 1 All non-admin employees Introduction After Hire Date Permanent

Level 2 All non-admin employees Annual Explosives Exp. Certification Annual

Level 3 Field employees Hands on Certification Exp. Certification Permanent

State Permit Eng / Op / GL / Man. State Program / Test Exp. Certification Per State

AHWS employees are required to have level 1 training in order to handle, ship, receive, or transport explosives. Training

materials and requirements are summarized in Table 1.

Table 2: Training Level Requirements

Level 1: Training will include:

a) Classification and characteristics of explosives used in oilfield service operations. b) Perforation and Perf. Guns. c) Gunshop safety. d) Procedures for the safe handling of explosives, including detonators at wellsite e) Applicable laws and procedures concerning the transportation of explosives.

f) Explosive storage and security g)PEC Core

Level 2: Training will include:

a) Classification and characteristics of explosives used in oilfield service operations. b) Perforation and Perf. Guns. c) Gunshop safety. d) Procedures for the safe handling of explosives, including detonators at wellsite e) Applicable laws and procedures concerning the transportation of explosives. f) Explosive storage and security

Level 3: Hands on verification and checklist of safe operating procedures. (2% Test, FE Breakout)

Specific Employee Categories Explosive User in Charge The Explosives User in Charge is the explosive user responsible for safe explosive operations at the wellsite. The Explosives User in Charge shall be responsible for connecting detonators to explosive devices and shall therefore be trained and qualified to arm explosive devices in addition to completing certification. Explosive Trainee

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An Explosives Trainee is any other person directly involved in explosives operations that has completed Level 1 training and that works under the direct supervision of an Explosive User.

Employee Prerequisites per BATFE regulations

The BATFE has specific prerequisites for any employee that will be exposed to explosives. Before becoming an employee, each

candidate will complete an “Employee Possessor Questionnaire”. The BATFE will review the questionnaire and verify that their

criteria have been met. If at any time before or during employment any of the below criteria comes into question, it is the

employees responsibility to notify their immediate or proposed manager. In addition, since for many of our locations exposure

to explosives material is unavoidable for day-to-day operations, any deviation or violation of the ATF criteria can be grounds

for dismissal.

BATFE Explosive Personnel Guideline

It shall be unlawful for any person knowingly to distribute to, or receive explosive materials from any individual who:

1) Is under 21 years of age

2) Has been convicted in any court of a crime punishable by imprisonment for a term exceeding one year.

3) Is under indictment for a crime punishable by imprisonment for a term exceeding one year.

4) Is a fugitive from justice.

5) Is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled

Substances Act)

6) Has been adjudicated a mental defective or has been committed to a mental institution.

7) Is an alien, other than as prescribed by BATFE Regulation of Explosives Chapter 40, Sec 842 part d7.

8) Has been discharged from the armed forces under dishonorable conditions.

9) Having been a citizen of the United States, has renounced the citizenship of that person.

Employee Responsibilities and General Rules

1) Employees are required to follow all applicable laws and regulations as put forth by BATFE, DOT, PHMSA, and local /

state agencies.

2) Employees are responsible for following the guidelines of this standard. Should a conflict exist between BATFE, DOT,

OSHA, or state agency requirements and this document, immediately notify a manager of the conflict before making

any decisions.

3) Employees are required to follow AHWS’ Explosives Field Safety Practices (pages 8-9), information and rules presented

in Level 1, Level 2, and Level 3 training, and are as well required to follow the guidelines as prescribed by API RP-67.

4) Employees are responsible for ensuring that their training and certifications (both internal and external) are up to date

and they are subsequently qualified to for their duties including all work in and around explosives.

5) Employees are responsible for reporting to management any personal changes that may deem them inoperable per

the BATFE personnel qualification criteria.

6) Employees are responsible for reporting theft or loss of explosives immediately to their supervisor.

7) Employees may not distribute explosives material to any person or organization outside of AHWS, or knowingly

distribute material to any person whom is not explosives certified.

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8) Employees may not use, handle, store, or transport explosives other than the use of explosives for normal business

operations including:

a. transport between districts

b. receiving explosives from qualified vendors

c. The utilization of explosives to produce revenue for AHWS in a normal wellsite job and environment.

Explosives cannot be taken from the shop or shipped for any other reason, may not be borrowed, and are not to be

handled for any other purpose.

9) Explosives may never be detonated on surface – and will only be detonated inside of a wellbore that has been

requested or approved by our clients.

10) Responsible Persons – as dictated by the BATFE (which may include gun loaders, engineers, and all management) will

be required to submit photograph and fingerprint information in order to obtain proper licensing.

11) Penalties: Any employee violating BATFE regulation may be prosecuted which may include punishments up to 20 years

imprisonment and include additional fines and penalties (actual fines and penalties are dictated by BATFE Regulation).

Manager and Base Requirements

Manager Responsibilities and General Rules

1) It is the manager’s responsibility to ensure that all federal, state, and local regulations are adhered to for their

respective district. This includes regulation pertinent to BATFE, DOT, OSHA, PHMSA, local state licenses and local fire

codes.

2) Managers are responsible for ensuring that any explosive operation is performed by an explosives certified crew.

3) Managers are responsible for ensuring proper training for all employees handling explosives.

4) Managers are responsible for ensuring that BATFE and state agencies are notified of any explosives personnel changes.

5) Managers are responsible for reporting any documents, letters, inspections, or communications from BATFE or other

agencies relevant to explosives to their immediate supervisor.

6) Managers are responsible for reporting any theft or loss of explosives immediately to their supervisor.

7) Managers may not distribute explosives material to any person or organization outside of AHWS, or knowingly

distribute material to any person whom is not explosives certified.

8) Managers are responsible for ensuring that the receipt of or disposition of any explosives is per regulations.

9) Managers are responsible for all record keeping for their respective district. Records need to be kept for 5 years and

maintained for training, inspections, magazine inventory, receipt records, and hazmat forms (record form examples

can be found on pages 13-15).

10) Managers are responsible for performing well audits and level 3 training for their staff.

11) Managers are responsible for performing base audits for explosives every 6 months.

12) Change of Employee Possessors (Employee changes) must happen within 30 days of the change.

Theft or Loss of Explosives

It is unlawful per BATFE regulation for any person having knowledge of the theft or loss of any explosives material to fail to

report such theft or loss within 24 hours of discovery. Any theft or loss must be immediately communicated to management

who will direct the actions for contacting the BATFE. The BATFE 24 hour hotline numbers are 1-800-800-3855 and 1-888-283-

2662. Information regarding the theft or loss must include:

1) Manufacturer or brand name

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2) Manufacturers ID marks (Date / Shift Code)

3) Quantity

4) Description (i.e. PETN Primacord) and UN identification Number

5) Size (length, diameter, weight)

Facility and Base

Facility Inspection: Any ATF officer may enter during business hours the premises, including places of storage…for the purpose

of inspecting or examining any records or documents required…,and any facilities in which explosive materials are kept or

stored.

A copy of license or user permit will be posted and available for inspection on the business premises.

For shipping of explosives material by common contract carrier the following items are needed:

a) Bill Of Lading must be filled out including name of driver and name of common carrier.

b) A copy of the driver’s license is needed to be kept on file.

Any person who stores explosive material shall notify the authority having jurisdiction for fire safety in the locality in which the

explosive materials are being stored of the type, magazine capacity, and location of each site where such explosive materials

are stored. The communication needs to happen orally on the day explosive materials storage commenced, and in writing

within 48 hours.

Any change in magazine location, type, or the addition of a magazine will require written notification to BATFE.

Storage of explosives will follow the limitations of the BATFE Table of Distances (5) 55.218 (page 16). Storage inside of facilities

is limited to 50 lbs. total.

Storage of explosives will only be permitted in BATFE approved magazines:

a) Type 1 magazine: Outdoor permanent ATF approved magazine

b) Type 2 magazine: Portable ATF approved indoor magazines.

c) Type 3 magazine: Portable Outdoor magazine (Day box)

d) Type 4 magazine: ATF approved low explosives storage.

Locks: Each door is to be equipped with two mortise locks or two padlocks fastened in separate hasps. Locks must be ATF

approved with a minimum of 3/8 inch diameter shackle, ¼ inch steel hoods, and have at least 5 tumblers.

Detonators must be stored separate from shape charges and other explosive material.

Smoking, matches, open flames, and spark producing devices are not permitted in any magazine, within 50 feet of any outdoor

magazine, or within any room containing an indoor magazine.

Managers will have in place a plan for restricted access to magazine keys.

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Magazines must be physically inspected twice per week. In addition, accurate records for magazines must be maintained per

approved AHWS Forms (pages 13-15).

“No Trespassing “, or “Visitors must check-in at front gate” sign must be posted at the facility.

Explosives material will be locked and secured appropriately and accounted for at all times.

For Transportation of Explosives, DOT and Hazmat rules will apply. In general:

a) All explosives shipments need to be properly secured.

b) Placards will be applied as required by DOT.

c) Hazmat form filled out appropriately when required by DOT.

d) Driver is qualified for Hazmat transportation.

e) Loads are not left unattended while traveling to, from, on wellsites, or at the base.

Field Operations

Human error is the principle cause of accidents and incidents involving explosives. Persons who use explosives on a regular basis over a long period of time must guard against becoming complacent and taking “short-cuts” with the required operations and procedures. The AHWS Explosives Field Safety Practices (pages 8-9) should be faithfully observed in order to prevent explosives accidents. Also, the general practices of Titan’s “Always and Never – Warnings and Instructions” (pages 10-11) should be observed. Unit Checks: When in safe mode, the cable circuit shall open all cable connectors from the electric wireline unit circuits and all conductors shall be shunted to armor through a nominal resistance of 5,000 ohms. This resistance shall be provided by a minimum of two similar resistors in parallel with the net resistance being 5,000 ohms. Electric Detonator Safety Tube: The electrical detonator safety tube shall be a heavy-walled tube with one end closed and a cover at the other end. Each tube design shall be shown to contain the fragments of the detonator in use and mitigate the blast. This tube is mandatory for use when connecting any detonator. Explosives warning signs shall include the words “DANGER EXPLOSIVES,” or equivalent. In operations involving electric detonators, warning signs should also include the words “TURN OFF RADIO TRANSMITTERS,” or equivalent. The explosives warning signs should be durable and should be visible and legible from a distance of 50 ft (15 m). Well site pressure testing of pressure control equipment should be completed prior to inserting a loaded explosive device into the lubricator. Integrity of the surface pressure control equipment can be tested and maintained using a Quick Test Safety Sub or a Wireline Safety Valve. These devices enable re-testing of the broken connection after introduction of the explosive device without applying pressure to the device itself. HMX Explosives: Special Handling of HMX Exposed to Elevated Temperature. Special attention must be paid when retrieving any device containing HMX explosive that has been exposed to a temperature exceeding the HMX phase transition temperature, which occurs at or above 150°C (300°F) and results in higher impact sensitivity. All HMX explosive devices shall be designed to prevent explosive from becoming loose during such a thermal cycle. Any uninitiated device containing HMX explosive that is retrieved after being exposed to a temperature exceeding the transition temperature shall be handled with care. The detonator shall be removed immediately and the gun or explosive device placed in a safe area for a period of not less than 24 hours. Downloading of explosives shall only take place at service company premises under its technical supervision. Specific consultation shall take place between the operator and the service company whenever it is planned to expose HMX charges to temperatures approaching or exceeding the transition

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temperature, or whenever it is believed that charges may have been exposed to temperatures approaching or exceeding the transition temperature. Under such circumstances, operators and service companies are advised to review and agree to the retrieval and disarming procedures prior to deployment.

Perforating Guns Misfired - Retrieval to Surface

Conventional Perforating Gun:

The explosive device should be retrieved at a rate not exceeding any limits recommended by the manufacturer. The explosive

device should be kept in the well at a minimum depth of 200 ft (60 m) below ground level until the following steps have been

completed:

1. Notify the company representative to let him or her know a perforating gun has misfired.

2. Power down (re-enter safe mode). At a depth of not less than 200 ft (60 m) below ground level, place the cable

circuit back in safe mode and isolate unit power.

3. Lock circuits in safe mode. After placing the cable circuit in safe mode, the key to the lockout device shall be

removed and shall remain outside the electric wireline unit until the explosive device has been retrieved from the

well and has been disarmed.

4. Wait at a depth of not less than 200 ft (60 m) for minimum 30 minutes.

5. Relocate all personnel unnecessary to the operation to a safe area. Ensure all personnel are clear of the line of fire

of the explosive device.

6. All essential and non-essential personnel will meet at the location’s designated muster point to review all steps

involved in disarming misfired devices (JSA).

7. Non-essential personnel will remain at the muster point until the operation is complete.

8. Ensure all RF transmitting devices are off. If the RF transmitting device cannot be turned off, it must be

removed from location and must remain there for the entirety of the gun download process.

9. Turn off all power equipment (i.e. diesel, gasoline engines) not critical to the operation.

RF Safe Perforating Gun:

The explosive device should be retrieved at a rate not exceeding any limits recommended by the manufacturer. The explosive

device should be kept in the well at a minimum depth of 200 ft (60 m) below ground level until the following steps have been

completed:

1. Notify the company representative to let him or her know a perforating gun has misfired.

2. Power down (re-enter safe mode). At a depth of not less than 200 ft (60 m) below ground level, place the cable

circuit back in safe mode and isolate unit power.

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3. Lock circuits in safe mode. After placing the cable circuit in safe mode, the key to the lockout device shall be

removed and shall remain outside the electric wireline unit until the explosive device has been retrieved from the well

and has been disarmed.

4. Wait at a depth of not less than 200 ft (60 m) for minimum 30 minutes.

5. All essential and non-essential personnel will meet at the location’s designated muster point to review all steps

involved in disarming misfired devices (JSA).

Rigging Down Misfired Guns

1. Special attention must be paid when retrieving any device containing HMX explosive that has been exposed to a

temperature exceeding the HMX phase transition temperature, which occurs at or above 150°C (300°F) and results in

higher impact sensitivity. Any uninitiated device containing HMX explosive that is retrieved after being exposed to a

temperature exceeding the transition temperature shall be handled with care. The detonator should be disarmed

immediately and the gun or explosive device placed in a safe area for a period of not less than 24 hours.

2. Check for internal pressure - Both fired and misfired tools shall be checked for any evidence of internal

pressure (if applicable, e.g., when using hollow carrier guns). If internal pressure is encountered, the AHWS

engineer will call the Service Quality Manager or Field Service Manager on call and review/discuss the appropriate

AHWS procedures.

Disarming any Misfired Devices

Any misfired devices shall be disarmed immediately, as follows:

1. Remove the detonator from the detonating cord (or device).

2. Put the detonator into the safety tube.

3. Disconnect the detonator electrically from the circuit.

4. Shunt the detonator lead wires together then remove the detonator from the safety tube and place it into an

appropriate container for transportation from the well site.

Tubing Conveyed Perforating Gun:

1. Drop bar systems - Explosive systems that use a drop bar to initiate the firing sequence shall not be brought to

surface without making all reasonable attempts to retrieve the drop bar, unless a positive indication has been

observed that the gun has fired.

2. Devices with self-contained power sources - Explosive devices that include a self-contained power source shall

be deactivated prior to being retrieved from the well, following service company recommended procedures.

3. Special attention must be paid when retrieving any device containing HMX explosive that has been exposed to a

temperature exceeding the HMX phase transition temperature, which occurs at or above 150°C (300°F) and

results in higher impact sensitivity. Any uninitiated device containing HMX explosive that is retrieved after being

exposed to a temperature exceeding the transition temperature shall be handled with care.

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4. Check for internal pressure - Both fired and misfired tools shall be checked for any evidence of internal

pressure (if applicable, e.g., when using hollow carrier guns). If internal pressure is encountered, the supervisor will

call the Service Quality Manager or Field Service Manager on call and review/discuss the appropriate AHWS

procedures.

5. Relocate all personnel unnecessary to the operation to a safe area before retrieving the explosive device to a depth

of less than 200 ft (60 m) below ground level or below the sea floor. No personnel should be present below the rig

floor during retrieval or disarming operations. Ensure all personnel are clear of the line of fire of the explosive device.

6. Immediately remove the firing mechanism. Proceed to break down the guns. Any misfired components

should be placed in an appropriate container for transportation from the wellsite.

Emergency Response and Communication

Immediate communication is required from the field crews and base management when the following occurs:

a) When a theft or loss of explosives is discovered.

b) When an accident involving a vehicle carrying explosives occurs.

c) When a deviation from standard operating procedures is required or requested.

d) When an explosive device is stuck in the hole.

e) Any accident utilizing explosives.

f) Any accident not attributed to explosives where explosives are on location.

g) Off depth perforation.

h) If at any time the field crew, manager, or client deems a job unsafe for explosive operations.

Emergency Response Communication Plan

For any of the above items a-h, the Emergency Communication Flowchart will be followed (page 12).

References

Organized Crime Control Act of 1970, Title XI, Regulation of Explosives

Title 27, Code of Federal Regulations, Part-555 Commerce in Explosives

API-RP 67 Recommended Practice for Oilfield Explosive Safety; May 2007

TITAN – Always and Never Warning and Instructions, Feb 2004

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Proper Grounding - Field Operations and Explosives

When AHWS handles explosive at the wellsite, safety will always be paramount. Grounding our equipment properly and

identifying unsafe conditions is a critical step in avoiding dangerous conditions. Although different procedures could be used

to identify a proper ground or identify an unsafe condition, these steps shall be taken to ensure the safety of all individuals on

the wellsite during explosive operations.

Rig-up procedure: Proper grounding of equipment

1. Un-spool the ground clamps on the perforator and place them in front of the wellhead.

2. Check and make sure the ground clamp cable is properly connected to the perforator chassis ground.

3. Connect the extension cord to the trailer’s external AC input.

4. Connect the trailer’s ground clamp to the perforator chassis.

5. Using the multi-meter, check the electrical resistivity between the perforator chassis and the ground pin on the

extension cord connected to the external AC input.

a. The resistance should be less than 250 Ω – If the resistance is greater than 250 Ω, check electrical

connections. *Must be < 250 Ω to proceed to step 6.

6. Using the multi-meter, check the difference of potential (DC and AC) between the wellhead and the perforator

ground clamp.

a. The measurement should not be greater than 250mV for either DC or AC (conventional detonator/igniter).

b. The measurement should not be greater than 2V for either DC or AC (RF Safe: Dyna/EBW only)

7. Using the multi-meter, check the difference of potential (DC and AC) between the crane and the perforator ground

clamp.

a. The measurement should not be greater than 250mV for either DC or AC (conventional detonator/igniter).

b. The measurement should not be greater than 2V for either DC or AC (RF Safe: Dyna/EBW only)

8. Once the ground clamps are connected to the wellhead and crane, check the resistivity between the clamp and the

item it is connected to (crane or wellhead).

a. The resistance should be less than 250 Ω – If the resistance is greater than 250 Ω, check electrical

connections.

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Table of Distances