Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 1104 - INTEGRITY MANAGEMENT

Universal Citation: 2 CO Code Regs 404-1 ยง 1104

Current through Register Vol. 47, No. 17, September 10, 2024

1104.a. Initial Pressure Testing Requirements.

(1) Within 90 days prior to placing any newly installed segment of flowline or crude oil transfer line into active status, an operator must test the line to at least maximum anticipated operating pressure and demonstrate integrity.

(2) If an operator successfully completes an initial pressure test for an off-location flowline or crude oil transfer line, but does not place the line into active status within 90 days, the line may remain in pre-commissioned status and will not require an additional initial pressure test if:
A. The operator applied best practices to protect the line's integrity for the time between completing the successful initial pressure test and placing the line into active status; and

B. The operator submits a Field Operations Notice, Form 42 - Notice of Return to Service, to the Director of the scheduled date for placing the line into active status not less than 48 hours prior to placing the line into service.

(3) In conducting tests, each operator must ensure that reasonable precautions are taken to protect its employees and the general public.

(4) The operator may use a hydrostatic test or conduct the test using inert gas or wellhead pressure sources and well bore fluids, including gas, in accordance with one of the applicable standards set forth in Rule 1104.h.(1) below.

1104.b. Testing upon request. An operator will conduct an integrity test of any segment of flowline or crude oil transfer line at any time upon request of the Director.

1104.c. Integrity Management for Active Status Below-ground Dump Lines. An operator must verify integrity of below-ground dump lines by performing an annual static-head test and a monthly audio, visual, olfactory (AVO) detection survey of the entire line.

1104.d. Integrity Management for Active Status Above-ground On-location Flowlines. An operator must verify the integrity of above-ground on-location flowlines by performing a monthly audio, visual, olfactory (AVO) detection survey of the entire flowline.

1104.e. Integrity Management for Active Status Below-Ground On-location Flowlines.

(1) For any below-ground on-location flowlines not subject to Rule 1104.c. or d., above, an operator must adhere to one of the following integrity management programs:
A. A pressure test to maximum anticipated operating pressure every three years;

B. Smart pigging conducted every three years;

C. Continuous pressure monitoring; or

D. Annual instrument monitoring conducted pursuant to Rule 1104.j.(2).

(2) If an operator elects to use smart pigging to comply with this section, the smart pig must be able to measure flowline wall thickness, and measure for flowline defects that could affect integrity, including measurement of metal loss. If no Geographic Information System (GIS) data of the flowline exists, the smart pig will have GPS capabilities to the extent such capabilities do not materially compromise the ability of the smart pig to conduct the integrity testing required by this section.

1104.f. Integrity Management for Active Status Off-Location Flowlines and Crude Oil Transfer Lines.

(1) For active status off-location flowlines and crude oil transfer lines, but not including off-location produced water flowlines, operators must adhere to one of the following integrity management programs:
A. An annual pressure test to maximum anticipated operating pressure;

B. Continuous pressure monitoring;

C. Smart pigging conducted every three years; or

D. Annual instrument monitoring conducted pursuant to Rule 1104.j.(2).

(2) For active status off-location below-ground produced water flowlines, operators must adhere to one of the following integrity management programs:
A. An annual pressure test to maximum anticipated operating pressure;

B. Continuous pressure monitoring; or

C. Smart pigging conducted every three years.

(3) For active status above-ground off-location produced water flowlines, operators may use any of the options listed in Rule 1104.f.(2), or monthly AVO inspections.

(4) If an operator elects to use smart pigging to comply with this section, the smart pig must be able to measure flowline wall thickness, and measure for flowline defects that could affect integrity, including measurement of metal loss. If no geodatabase file of the flowline exists, the smart pig will have GPS capabilities to the extent such capabilities do not materially compromise the ability of the smart pig to conduct the integrity testing required by this section.

1104.g. Leak protection, detection, and monitoring.

(1) All crude oil transfer line operators must prepare and file with the Director a leak protection and monitoring plan with their registration.

(2) All crude oil transfer line operators must develop and maintain a plan to coordinate the assessment of all inflow and outflow data. The plan must provide for the assessment of inflow and outflow data between the production facility operator, the crude oil transfer line operator, and the operator at the point or points of disposal, storage, or sale. Upon discovery of a material data discrepancy, the discovering party is to notify all other appropriate parties and take action to determine the cause. The crude oil transfer line operator is to retain a record of all material data discrepancies.

1104.h. Pressure Test Requirements.

(1) Initial Pressure Test.
A. Before putting an off-location flowline or crude oil transfer line into active status, the successful initial pressure test must be conducted for a minimum of four hours or in compliance with the manufacturer's specifications and in accordance with one of the following applicable standards.
i. American Society of Mechanical Engineers (ASME), Process Piping, 2016 Edition (ASME 31.3-2016) and no later edition;

ii. ASME Pipeline Transportation Systems for Liquids and Slurries, 2016 Edition (ASME B31.4-2016) and no later edition;

iii. ASME Gas Transmission and Distribution Piping Systems, 2016 Edition (ASME B31.8-2016) and no later edition;

iv. API Specification 15S, Spoolable Reinforced Plastic Line Pipe, Second Edition, March 2016 (API Specification 15S) and no later edition;

v. API RP 15TL4 (R2018) Recommended Practice for Care and Use of Fiberglass Tubulars, Second Edition, March 1999, together with API Specification 15HR, High-pressure Fiberglass Line Pipe, Fourth Edition, February 2016 (API Specification 15HR), and no later editions;

vi. API RP 1110, Recommended Practice for the Pressure Testing of Steel Pipelines for the Transportation of Gas, Petroleum Gas, Hazardous Liquids, Highly Volatile Liquids or Carbon Dioxide (6th Ed., February 1, 2013) (API RP 1110) and no later edition; or vii. ASTM F2164-13, Standard Practice for Field Leak Testing of Polyethylene (PE) and Crosslinked Polyethylene (PEX) Pressure Piping Systems Using Hydrostatic Pressure, and no later edition, or manufacturer's specifications and must test the line to at least maximum anticipated operating pressure.

B. The ASME, API and ASTM standards identified in A. above are available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado 80203. Additionally, the standards may be examined at any state publications depository library. The ASME standards are available to purchase from the ASME at Two Park Avenue, New York, NY 10016-5990, 1-800-843 -2763. The API standard is available to purchase from the API at 1220 L Street, NW Washington, DC 20005-4070, 1-202-682 -8000. The ASTM standard is available to purchase from the ASTM at ASTM International, West Conshohocken, PA, 19428-2959, 1-877-909 -2786.

C. Before putting an on-location flowline into active status, the initial pressure test must be conducted in compliance with the manufacturer's specifications or in accordance with one of the applicable standards identified in Rule 1104.h.(1)A.

D. The initial pressure test can be hydrostatic or the test fluid can be the produced fluids of oil, condensate, produced water, or natural gas or inert gas in accordance with the applicable sections of the above-mentioned standards.

E. A successful initial pressure test must demonstrate that the flowline or crude oil transfer line does not leak.

(2) Annual and Triennial Pressure Testing Requirements. For annual or triennial pressure tests conducted to meet the requirements of Rules 1104.e and 1104.f:
A. A pressure test must test to at least the maximum operating pressure and run for at least 30 minutes once the fluid pressure has stabilized.

B. The test can be hydrostatic or the test fluid can be the produced fluids of oil, produced water or natural gas.

C. A successful test will demonstrate the flowline or crude oil transfer line does not leak, that pressure loss does not exceed 10%, and the fluid pressure is stable for the last five minutes of the pressure test.

1104.i. Continuous Pressure Monitoring Requirements. An operator's continuous pressure monitoring program must meet API RP 1175 "Pipeline Leak Detection Program Management" (2017), and no later editions of the standard, and ensure:

(1) Pressure data are monitored continuously, i.e., 24 hours per day and 7 days a week, and the monitoring is sufficiently sophisticated to identify flowline or crude oil transfer line integrity or pressure anomalies;

(2) Systems are capable of being shut-in for repairs immediately upon discovery of a suspected leak, either through automation or a documented, manual process;

(3) The operator documents the continuous monitoring program, including suspected or identified integrity failures and how the operator will maintain and repair flowlines or crude oil transfer lines; and

(4) The API RP 1175 is available for public inspection during normal business hours from the Public Room Administrator at the office of the Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado 80203. In addition, API RP 1175 may be examined at any state publications depository library and is available from API at 1220 L Street NW, Washington, DO 20005-4070, 1-202-682 -8000.

1104.j. Audio, Visual and Olfactory (AVO) Detection Survey or Alternative Survey Requirements.

(1) When performing an AVO detection survey, an operator must survey the entire flowline length using audio, visual and olfactory techniques to detect integrity failures, leaks, spills, or releases, or signs of a leak, spill, or release like stressed vegetation or soil discoloration.

(2) Instrument Monitoring Method (IMM). Where the regulations permit, an operator also may conduct a survey using an instrument monitoring method capable of detecting integrity failures, leaks, spills or releases, or signs of a leak, spill or release.

(3) For either survey method, an operator must document the date and time of the survey, the detection methodology and technology, if any, used and the name of the employee who conducted the survey.

1104.k. Integrity Failure Investigation.

(1) If the integrity management program indicates that a flowline or crude oil transfer line has or has had an integrity failure, the operator must investigate the cause of the failure, investigate whether the failure resulted in a spill or release of liquids, produced water, or gas, and repair any failure as required by Rule 1102.j.

(2) If the failure resulted in a spill or release of liquids, produced water or gas, the operator must comply with the 900 Series Rules.

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