The Pipeline Research Council International, Inc.

What is it? How can you and your company benefit?

HistoryHistoryOrganized in 1952 by 15 Natural Gas Transmission Pipeline Companies

Originally formed to address the problem of long-running brittle fractures in natural gas transmission pipelines.

In solving the problem within 2 years, the Committee demonstrated the benefit to the industry of collaboration and the leveraging of voluntary industry funding.

The Committee grew into the Pipeline Research Council International, Inc. (PRCI) a non-profit organization now composed of 34 of the Worlds largest pipeline companies.

TECHNOLOGY DEVELOPMENT OF, BY AND FOR ENERGY PIPELINES

PRCI MembersPRCI Members

VisionVision“To be the preeminent collaborative

technology development organization of, by, and for the energy pipeline industry.”

MissionMission“To conduct a collaboratively-funded technology development program that

enables energy pipeline companies around the world to provide safe, reliable,

environmentally compatible, and cost-effective service to meet customer energy

requirements.”

Note the focus is on “Technology Development”NOT “Research & Development” - better suited to Pipeline business drivers

PRCI TodayPRCI Today

PRCI is a tax exempt, not for profit corporation comprised of energy pipeline companies

Annual membership fees based on Miles/Km of pipeline and invests >90% of all collected funds on technology development.PRCI celebrated its 50th Anniversary in 2002 and has produced over 1,600 research studies, software applications, patents many of which are in use todayPRCI is governed by a Board of Directors (BOD), comprising one voting member for each member company.

PRCI & Technical Toolboxes, Inc. (TTI)PRCI & Technical Toolboxes, Inc. (TTI)

Commercialization of all PRCI Intellectual Property (IP)Licensing and integration assistanceDesigned, built and maintain the PRCI web site www.prci.com for sale of PRCI IP (public) as well as member communications (private)Software enhancement and maintenanceTraining, conferences & seminar preparation and coordinationMarketing and solicitation of new members

TTI is the exclusive strategic partner of PRCI providing the following services:

European Pipeline Research Group (EPRG)Australian Pipeline Industry Association (APIA)European Gas Research Group (EGRG)Gas Research Institute (Gas Technology Institute)American Petroleum Institute (API)American Gas Association (AGA)Interstate Natural Gas Association of America (INGAA)

Professional AffiliationsProfessional Affiliations

Design, Construction & OperationsMaterialsCorrosion & InspectionCompressor Stations & PumpsUnderground StorageMeasurement

Technical CommitteesTechnical Committees

Design, Construction & Operations Mission

Design, Construction & Operations Mission

“To develop safe, environmentally responsible, cost-effective and reliable solutions for the design, construction, and operation of energy pipelines.”

Design, Construction & OperationsDesign, Construction & Operations

Technical AreasOffshore design, Engineering operations, Reliability based design

Recent AccomplishmentsDeveloped reference guide for ROVsEstablished clamp-type repair system for minor pipeline leaks below diver reachDeveloped comprehensive guidelines for horizontal directional drilled crossingsDeveloped finite element analysis and full scale rupture tests to establish failure envelopes for fittingsCompleted upgrade of the PRCI model for on-bottom stability of offshore pipelinesDeveloped dents and cyclical fatigue criteria

Materials MissionMaterials Mission

“To improve the performance and integrity of new and existing pipelines and lower the costs of

pipeline construction, operation, and maintenance through the development and implementation of material, joining, and inspection technologies.”

MaterialsMaterialsTechnical Areas

Welding on pressurized linesJoining high strength materialsWeld discontinuitiesNew, improved joining processesJoining for severe servicesStructural integrityStress corrosion crackingMaterials technologyIn-Line inspection technology (Smart Pigging)Non-Intrusive TechnologyCoating Adherence

Recent AccomplishmentsProcedure for repair of pipeline corrosion defects by weld metal depositionRSTRENG and enhancements to former guidelines for evaluating corrosion defects on pipelinesPrediction of weld cooling rates to aid in the process of welding on in-service pipelinesDevelopment of a comprehensive model for Stress Corrosion Cracking (SCC)Ultrasonic long range inspection technology for buried pipelinesLaser tool for accurate mapping of external corrosion defectsDevelopment of EMAT technology for in-line inspection of SCCUltrasonic tool for limited distance detection of internal and external defects from bellhole digs

Corrosion & Inspection MissionCorrosion & Inspection Mission

“To provide value to the energy pipeline industry through improved system integrity and

reliability by developing the means for locating and characterizing pipeline imperfections, and

improved corrosion prevention, monitoring, and mitigation capabilities.”

Corrosion & InspectionCorrosion & InspectionRecent Accomplishments

Establishment of CP polarization levels as a function of soil type and time of exposurePrediction of corrosion rates for H2S/CO2 matrices with other ions presentDeveloped guidelines for mitigating stray DCDeveloped CP Guidelines for SCC growth ratesAC interference prediction system for pipelines and power lines in common corridors

Technical AreasCathodic ProtectionPipeline CoatingsInternal Corrosion ControlStress Corrosion Cracking (SCC)

Compressor Stations & Pumps Mission

Compressor Stations & Pumps Mission

“To minimize the operating costs and capital requirements of compression service while meeting market demand and all applicable

environmental regulations.”

Compressor Stations & PumpsCompressor Stations & Pumps

Recent AccomplishmentsDeveloped high pressure fuel injection for 2-stroke engines that reduces emissions and improves efficiencyDeveloped electronically enhanced engine control that has become the first step in NOx reductionDeveloped sensors to implement PEMS emissions and compressor performance monitoring, and engine balancing systemsCompleted study characterizing the performance of 2 stroke compressor engines, demonstrating operating limits on emissions and efficiency for use in educating regulators

Technical AreasEmissions ControlOperating flexibilityOperations and maintenance cost reduction

Underground StorageMission

Underground StorageMission

“To develop and deploy natural gas storage technologies that address current and changing

customer demands for storage services at competitive prices so as to help maintain both

system efficiency and overall gas market share.”

Underground StorageUnderground StorageTechnical Areas

Cavern StorageDeliverability (Damage Remediation)Re-Engineering (Maximizing storage asset performance)

Recent AccomplishmentsDeveloped effective downhole damage determination procedures for underground storage operatorsDeveloped software (Salt Cavern Thermal Simulator – SCTS) to follow the thermal effects during cavern design and operationsDeveloped software (Damage Expert System) to help storage operators with diagnosis and design of treatments for well damageDeveloped guidelines (geotechnical and risk) for delta-pressuring storage fields

MeasurementMISSION

MeasurementMISSION

“To provide measurement technologies that result in increased customer satisfaction and achieve cost savings through more accurate metering,

better management of data, improved operational efficiency, and reduced capital expenditures.”

MeasurementMeasurementTechnical Areas

New MetersGas SamplingOperational Integrity

Recent AccomplishmentsProvided data and assisted in the development of the revision to API 14.3, Part 2, pertaining to the application, installation and use of orifice metersProvided data and assisted in the development of AGA Report 9 pertaining to the use of ultrasonic metersProvided the data and assisted in the development of API 14.1, pertaining to gas sampling practicesProvided data characterizing the effects of flow conditions on gas measurement

Membership AdvantagesMembership AdvantagesMember funding is supplemented by various government and trade association co-funding leveraging $ invested to >US$15Million/Year.Periodic assessments by individual PRCI member companies have consistently produced a 5 to 1 ration of return on annual investment.Current value of technology offered for sale to non-members (see www.prci.com) exceeds US$3Million.

Companies enjoy important benefits from their membership in PRCI:Shaping and directing the technology agendaLeveraging technology investmentGaining earliest access to technologyExpanding the knowledge base – the industry, the company, the employeeEnhancing the image of the member companyProviding a forum for addressing unique, time-sensitive problems

PRCI Pipeline Technology Subscription Service

PRCI Pipeline Technology Subscription Service

Associate Member StatusAvailable only to non owner/operators of pipelinesCost based on ability to pay just like PRCI membersBenefits include:

• Unlimited IP Access• Pre Approved and preferred

vendor/contractor status for PRCI project work

• Invitation to attend Technical Committee meetings and formal PRCI functions