below the surface: the importance of mechanical integrity

© ERI Solutions Inc. All Rights Reserved.

Below the Surface: The Importance of Mechanical Integrity at Your Plant


Introduction

• ERI Solutions Inc. (ERI) founded in 2003 to develop insurance markets and standards for the growing ethanol industry. – Insurance Risk Management

– Safety & Health

– ERM SPC, Ltd.

– Process Safety Management (PSM)

– Acquired Environmental Compliance Division from ICM, Inc.

– Developed Non-Destructive Testing (NDT) Service

– Developed (Focused Integrity Testing)

– Acquired Paragon Services, Inc.’s Non-Destructive Testing division

– Acquired Paradigm EH&S Consulting Group, LLC of Owasso, OK

2003 2006 2010 2011 2012 2014 2015


Introduction (Cont.)

To Date over 100+ API 510 / 570 / 653 inspections in ethanol plants in the past 4 years.

Developed or assisted in development of over 40 Mechanical Integrity (MI) programs for ethanol

plants.

Approaching 40 ethanol plants in ERI’s Focused Integrity Testing

Program where we test a portion of required testing annually along

with industry known areas of concern and areas of concern

specific to your facility.

Manage the Ethanol Risk Management SPC, Ltd. captive insurance program for the ethanol industry with over $10 billion dollars of insured ethanol plant

assets.

With over 70 plants – we have a lot of “skin in the game” so to speak.


The Age of the Ethanol Industry

Year Period of Time Plant’s Built (Approx.)

1980 - 1995 15 35

1995 - 2000 5 20

2000 - 2005 5 45

2005 - 2010 5 110

2010 - 2015 5 8

Plant Average Age

27.5

17.5

12.5

7.5

2.5


Why is Asset Integrity so Important?

Erosion of piping circuits in areas where liquids or gases

change direction

Underside corrosion of floors of floating roof

storage tanks


We Want to Avoid this…


We Want to Avoid this…

WORKPLACE FATALITY

1984 – 2015

He passed too soon doing a job he loved


Maintaining Compliance


Inspections for Ethanol

ECOGNIZED

ND

ENERALLY

CCEPTED

OOD

NGINEERING

RACTICES

Your plant should be inspected to the same standards that it was built to


How Your Assets Typically Age

P-F Interval

Potential Failure

Functional Failure

Co

nd

itio

n

Time

Inspections


What Type of Inspections?


Overview of Non-Destructive Testing (NDT)

• Evaluating the properties of a material, component or structure without doing damage.

• Other terms – Non-Destructive Evaluation (NDE)

– Non-Destructive Inspection (NDI)

– Non-Destructive Examination (NDE)

• NDT is a highly valuable technique that can save both money and time in product evaluation, troubleshooting, and research because it doesn’t permanently alter the article being inspected.


Non-Destructive Testing (NDT) Uses

• To assist in product development

• To screen and sort incoming materials ( Raw Materials)

• To monitor, improve or control manufacturing processes

• To verify proper processing (Example: Heat Treating)

• To verify proper assembly

• To inspect for in-service damage


Non-Destructive Testing (NDT) Methods

Certifications & Non-Destructive Testing Methods

Utilized

Ultrasonic

(UT)

Ultrasonic Shear Wave

Eddy Current

(ET)

-INTERNAL-

Penetrant

(PT)

Magnetic Particle

(MT)

Magnetic Flux Leakage

(MFL)

-INTERNAL-

Visual

(VT)

Radiography

(RT)


Mirrors Magnifying Glass.

Fiberscope Robotic Crawlers Borescope

Visual (VT) Inspection

Visual is the most basic and common inspection method


Liquid Penetrant (PT) Inspection

Application Cleaning Developing Interpretation

Penetrant Crack Developer Interpretation


Magnetic Particle (MT) Inspection

The part is magnetized. Finely milled iron particles coated with a dye pigment are then applied to the specimen. These particles are attracted to magnetic flux leakage fields and will cluster to form an indication directly over the discontinuity. This indication can be visually detected under proper lighting conditions.


Radiography (RT) Inspection

The part is placed between the radiation source and a piece of film. The part will stop some of the radiation. Thicker and more dense area will stop more of the radiation. The film darkness (density) will vary with the amount of radiation reaching the film through the test object.

Top view of developed film

X-ray film

= more exposure

= less exposure


Radiography (RT) Inspection – Examples

Naked Eye Naked Eye Naked Eye

Inspection Result Inspection Result Inspection Result


Eddy Current (ET) Inspection

Eddy current testing is particularly well suited for detecting surface cracks but can also be used to make electrical conductivity and coating thickness measurements. Here a small surface probe is scanned over the part surface in an attempt to detect a crack.


Ultrasonic (UT) Inspection

High frequency sound waves are introduced into a material and they are reflected back from surfaces or flaws. Reflected sound energy is displayed versus time, and inspector can visualize a cross section of the specimen showing the depth of features that reflect sound.

plate

crack

0 2 4 6 8 10

initial

pulse

crack

echo

back surface

echo

Oscilloscope, or flaw detector screen


Inspection of Raw Products

• Forgings

• Castings

• Extrusions

• Etc.


Inspection Following Secondary Processing

• Machining

• Welding

• Extrusions

• Etc.


Inspection For In-Service Damage

• Cracking

• Corrosion

• Erosion/wear

• Heat Damage

• Etc.


Processing Plant Inspection – Tube & Shell Heat Exchangers

Periodically, power plants, refineries, chemical plants, biofuels plants and other industrial processing plants are shutdown for inspection. Inspectors feed eddy current probes into heat exchanger tubes to check for corrosion damage.

Probe

Signals produced

by various

amounts of

corrosion

thinning.

Pipe with damage

Eddy Current (ET) Inspection 190P Condenser August 1, 2015


Camera - use long articulating arms are used to inspect underground storage tanks for damage.

Processing Plant Inspection – Storage Tanks

Robotic Crawlers - use ultrasound to inspect the walls of large above ground tanks for signs of thinning due to corrosion

Magnetic Flux Leakage – use a magnetic field to map the underside of tank floors to identify corrosion


Processing Plant Inspection – Pressure Vessels

The failure of a pressure vessel can result in the rapid release of a large amount of energy. To protect against this dangerous event, the tanks are inspected using radiography and ultrasonic testing.


Common Findings/Issues in the Ethanol Industry


Findings from Inspections in Ethanol Industry

1 2 3



4 5 6



7 8 9



10 11 12



13 14 15


Why Should you Care?


Fines / Citations

Other Than Serious Up to $7,000 per violation

Serious Mandatory Minimum of

$7,000 per violation

Repeat Up to $70,000 per violation

Willful Up to $70,000 per violation and if found to

be criminal, up to $250,000 fine for an individual or $500,000 for a corporation

plus up to 6 months imprisonment.


A Property Claim Will Cost You!

Fully-Insured Ethanol Companies

• Property Damage Deductible (Generally $100,000 to $250,000 depending on company size and risk tolerance)

• Business Interruption Deductible (Generally 5 to 15 day Average Daily Value or no profit of continuing expenses paid)

Self-Insured Ethanol Companies

• Pay total cost to rebuild • Has no profit or continuing expenses covered while

rebuilding

INSURANCE COSTS


Other Costs (Uninsurable Portion)

Legal / Attorney

Insurance

Employee

Public

Fees

Rate Increases

Lose Positive Morale

Perception becomes Negative

Customers Contract Elsewhere

Production Efficiencies

Civil Lawsuits


But it is OK because…

DUMB THINGS HAPPEN

100% of property damage events (excluding acts of God) are preventable… Many of them will be prevented because of your Maintenance Activity


So What Can You Do?

• Educate yourself & company management – Understand & explain legal requirements

– Understand and explain how this is about reliability, continued operations and compliance and how it is much more that a “Check the Box” activity

– Seek examples (To build your case)

o Other similar instances in ethanol or in similar industries (I hope you have several provided here in this presentation)

Loss control, reliability, safety and compliance with regulatory agencies is the right thing to do, but it has also proven to be a very smart financial business decision


(316) 927-4290

125 N. First Street | Colwich, KS 67030

www.erisolutions.com

For more Information:

http://www.erisolutions.com/

below the surface: the importance of mechanical integrity

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