Ala. Admin. Code r. 400-2-6-.10

Current through Register Vol. 43, No. 1, October 31, 2024

Section 400-2-6-.10 - Production Facilities, Processing Facilities, And Offshore Plants

Onshore facilities processing hydrocarbons produced from submerged offshore lands are subject to this rule. All offshore production facilities, processing facilities, and offshore plants shall be designed, installed, and maintained in a manner which provides for efficiency, safety of operation, and protection of the environment. All information required for the Supervisor's approval in this rule shall be submitted at least thirty (30) days prior to installation.

(1)Production Facilities.

(a) All production equipment shall be designed, installed, and maintained in accordance with generally accepted industry practices or standards.

(b) A generalized process schematic flow diagram showing all equipment with size, capacity, and design working pressure of separators, flare scrubbers, treaters, storage tanks, compressors, line pumps, metering devices, and other hydrocarbon-handling vessels, and the location of safety and pollution control equipment shall be submitted to the Supervisor for approval.

(c) Prior to construction and operation of a sour gas production facility, approval must be obtained from the Supervisor. Application for permission to construct and operate a sour gas production facility shall be considered a two-step process.

1.Step 1. An operator seeking the Supervisor's approval for the construction and operation of a sour gas production facility shall submit in duplicate the information listed below:

(i) A generalized schematic flow diagram showing all equipment on location with size, capacity, and design working pressure of separators, flare scrubbers, treaters, storage tanks, compressors, line pumps, metering devices, and other hydrocarbon-handling vessels, and the location of safety and pollution control equipment.

(ii) A description and schematic diagram showing hydrogen sulfide safety and monitoring equipment specified in Rule 400-2-8-.04 relating to Operations Involving Hydrogen Sulfide.

2.Step 2. Prior to placing equipment in service, the following information shall be submitted:

(i) The following certification signed and dated with the title of the company representative: "(Operator) certifies that the (Production Facility) has been designed, installed and will be operated in accordance with generally accepted industry practices or standards for such facilities."

(ii) In accordance with Rule 400-2-8-.04 relating to Operations Involving Hydrogen Sulfide, an Operator's Certificate of Compliance for Operations Involving Hydrogen Sulfide on Form OGB-24 for the facility, and associated wells, shall be submitted to the Supervisor.

(d) Additional information when required by the Supervisor.

(2)Processing Facilities.

(a) Processing facilities shall be designed, installed, and maintained in accordance with generally accepted industry practices or standards.

(b) Prior to the construction and operation of a processing facility, approval must be obtained from the Supervisor. Application for permission to construct and operate a processing facility shall be considered as a two-step process.

1.Step 1. An operator seeking the Supervisor's approval for the design and construction of a processing facility shall submit in duplicate the information listed below:

(i) A plat of the site.

(ii) A generalized statement of processes and procedures used in the facility and the design capacity of the facility.

(iii) A generalized schematic flow diagram showing all equipment on location and a plat showing location, size, capacity, and design working pressure of separators, flare scrubbers, treaters, storage tanks, compressors, line pumps, metering devices, and other hydrocarbon-handling vessels, and the location of safety and pollution control equipment.

(iv) Generalized schematic diagrams showing location of hydrogen sulfide and combustible gas detection equipment, sensors and alarms, personnel safety equipment, fire fighting equipment, and emergency shutdown devices.

(v) Construction plans and schedules shall be submitted to the Supervisor prior to initiating construction of the facility.

2.Step 2. Prior to placing a processing facility into service, the following certification signed and dated with the title of the company representative shall be submitted: "(Operator) certifies that the (Processing Facility) has been designed, installed and will be operated to meet or exceed generally accepted industry standards or practices for such facilities. "

(c) Notification shall be given to the Supervisor for turnaround operations.

(d) For sour gas operations, in addition to the above, the following information shall be submitted:

1. A description and schematic diagram showing hydrogen sulfide safety and monitoring equipment specified in Rule 400-2-8-.04 relating to Operations Involving Hydrogen Sulfide.

2. Operator's Certificate of Compliance for Operations Involving Hydrogen Sulfide on Form OGB-24 for the facility, and associated wells, shall be submitted to the Supervisor.

(e) Additional information when required by the Supervisor.

(3)Offshore Plant.

(a) An offshore plant shall be designed, installed, and maintained in accordance with generally accepted industry practices or standards.

(b) Prior to the construction and operation of an offshore plant, approval must be obtained from the Supervisor. Application for permission to construct and operate an offshore plant shall be considered as a two-step process.

1.Step 1. An operator seeking the Supervisor's approval for the design and construction of an offshore plant shall submit in duplicate the information listed below:

(i) A plat of the site.

(ii) A generalized statement of processes and procedures used in the facility and the design capacity of the facility.

(v) Construction plans and schedules shall be submitted to the Supervisor prior to initiating construction of the facility.

2.Step 2. Prior to placing the offshore plant in service the operator shall submit information pertaining to operation and maintenance as listed below:

(i) The operator shall submit a schedule for initial testing and inspection of the safety systems at the offshore plant. Such test shall be witnessed by the Board's representative prior to commencing the operation of the offshore plant. Schedules for subsequent inspections and testing shall be submitted to the Supervisor.

(ii) Gas monitoring equipment, including equipment for hydrogen sulfide monitoring and combustible gas detection, shall be maintained in accordance with industry standards.

(iii) The operator shall maintain records showing the dates and results of inspection, testing, repairing, adjustment, and reinstallation of all shut-in devices, relief valves, and safety systems for a period of two (2) years, during which time they shall be available for review by an agent of the Board.

(iv) Prior to placing an offshore plant into service, the following certification signed and dated with the title of the company representative shall be submitted: "(Operator) certifies that the (Offshore Plant) has been designed, constructed and will be operated to meet or exceed generally accepted industry practices or standards for such facilities."

(c) Prior to placing an offshore plant involving extraction, into service, approval must be obtained from the Board after notice and hearing.

(d) Notification shall be given to the Supervisor for turnaround operations.

(e) For sour gas operations, in addition to the above, the following information shall be submitted:

1. A description and schematic diagram showing hydrogen sulfide safety and monitoring equipment specified in Rule 400-2-8-.04, relating to Operations Involving Hydrogen Sulfide.

2. Operator's Certificate of Compliance for Operations Involving Hydrogen Sulfide on Form OGB-24 for the facility and associated wells shall be submitted to the Supervisor.

(f) Additional information when required by the Supervisor.

(4)Modifications to Production Facilities, Processing Facilities, and Offshore Plants. Modifications to production facilities, processing facilities, and offshore plants shall be addressed in the following manner:

(a) If any production facility requires modifications or metering changes that revise the basic information pertaining to flow diagrams or treatment, revised schematics shall be submitted to the Supervisor for his approval prior to making such modifications.

(b) If any sour gas production facility, processing facility or offshore plant requires modifications or metering changes that revise the basic information pertaining to flow diagrams, processing, safety systems, or equipment size and locations, revised schematics shall be submitted to the Supervisor for the approval prior to making such modifications.

(c) Additional information when required by the Supervisor.

(5)Safety and Pollution Control Equipment and Procedures. All platform production facilities, processing facilities, and offshore plants shall be protected with a basic and ancillary surface safety system designed, analyzed, installed, tested, and maintained in operating condition in accordance with the provisions of API RP 14C, or subsequent revisions thereof, and in accordance with the following:

(a) All pressure vessel relief valves shall be connected to a flare line.

(b) All pressure sensors and all pressure relief valves shall be equipped to permit testing with an external pressure source. A relief valve shall be set no higher than the designed working pressure of the vessel. The high-pressure shut-in sensor shall be set no higher than five percent (5%) or five (5) pounds per square inch (psi), whichever is greater, below the rated or designed working pressure of the vessel. The low pressure shut-in sensor shall be set no lower than fifteen percent (15%) or 5 psi, whichever is greater below the lowest pressure in the operating pressure range. The activation of low-pressure sensors on pressure vessels that operate at less than 5 psi shall be approved by the Supervisor.

(c) All flare lines shall be equipped with a scrubber or similar separation equipment capable of handling the rated capacity of the vessel on the platform.

(d) All wellhead assemblies shall be equipped with an automatic fail-close valve. Automatic safety valves temporarily out of service shall be flagged.

(e) Flowlines from wells shall be equipped with high-and low-pressure shut-in sensors located in accordance with Figure Al of API RP 14C, or subsequent revisions thereof.

(f) All shut-in systems shall be activated by fusible material as specified by Table CI of API RP 14C, or subsequent revisions thereof.

(g) The Emergency Shutdown Device (ESD) shall conform to the requirements of Appendix C, Section CI, of API RP 14C, or subsequent revisions thereof. The manually operated ESD valve(s) shall be quick opening and nonrestricted to enable the rapid actuation of the shutdown system.

(h) The following safety devices shall be tested monthly for the first four (4) months after being placed in service.

1. All Pressure Sensor High (PSH) or Pressure Sensor Low (PSL),

2. All Level Sensor High (LSH) and Level Sensor Low (LSL) controls,

3. All automatic inlet Shutdown Valves (SDV's) which are actuated by a sensor on a vessel or compressor, and

4. All SDV's in liquid discharge lines and actuated by vessel low-level sensors.

(i) If the monthly results are consistently within test tolerance, a quarterly test shall be required for at least one (1) year. If these results are consistently within test tolerance, upon request of the operator, a longer period of time between testing may be considered for approval by the Supervisor.

(j) All automatic wellhead safety valves shall be tested monthly for operation. If these results are consistently within test tolerance, a longer period of time between pressure tests, not to exceed quarterly, may be considered for approval by the Supervisor.

(k) All flowline check valves shall be tested monthly for leakage for the first four (4) months after being placed in service. If the monthly results are consistently within test tolerance, quarterly tests shall be required for at least one (1) year. If these results are consistently within test tolerance, or upon request of the operator, a longer period of time between tests may be considered for approval by the Supervisor.

(l) A complete testing and inspection of the safety system shall be witnessed by the Supervisor's representative at the time production is commenced. Thereafter, the operator shall arrange for a test every twelve- (12-) months. The test shall be conducted when it can be witnessed by the Supervisor's representative.

(m) The operator shall maintain records showing the dates and results of inspection, testing, repairing, adjustment and reinstallation of all surface and subsurface safety devices for a period of two (2) years, during which time they shall be available for review by the Supervisor.

(n) Additional information when required by the Supervisor.

(6)Fire Fighting System. A fire fighting system shall be installed in accordance with the following:

(a) A fire fighting system shall be installed in conformance with Subsection 5.2, Fire Water Systems, of API RP14G, or subsequent revisions thereof. The firewater system shall consist of rigid pipe with fire hose stations or fixed firewater monitors and shall be installed in all areas where hydrocarbon production equipment is located. A fire fighting system using chemicals may be installed in lieu of a firewater system if it is determined that it will provide equivalent fire protection. A fixed water spray system shall be installed in enclosed well-bay areas where hydrocarbon vapors may accumulate.

(b) Fuel or power for firewater pump drivers shall be available for at least thirty (30) minutes of run time during platform shut-in time. If necessary, an alternate fuel or power supply shall be installed to provide continued pump operation during platform shut down unless an alternate fire fighting system is provided.

(c) Portable fire extinguishers shall be placed in conformance with Subsection 6.2, Placement of Extinguishers, of API RP14G, or subsequent revisions thereof.

(d) The fire fighting system and all portable fire extinguishers shall be inspected and maintained in conformance with Section 7, Inspection, Testing, and Maintenance, of API RP14G, or subsequent revisions thereof. A record of testing shall be retained for a period of two (2) years during which time they shall be available for review by the Supervisor.

(e) A diagram of the fire fighting system showing the location of all equipment shall be posted in a prominent place on the platform or structure.

(f) Additional information when required by the Supervisor.

(7)Automatic Detector and Alarm System. Fire and gas detection systems shall be capable of continuous monitoring. Fire-detection systems and portions of combustible gas-detection systems related to the higher gas concentration levels shall be of the manual-reset type. Combustible gas-detection systems related to the lower gas-concentration level may be of the automatic-reset type.

(a) Gas detection systems shall be installed in all enclosed areas containing gas handling facilities or equipment and in other enclosed areas which are not adequately ventilated as defined in Section CI.3b. of API RP14C, or subsequent revisions thereof.

(b) Fire and gas detection systems shall be an approved type, designed and installed in accordance with API RP14C, RP14G, and RP14F, or subsequent revisions thereof.

(c) The central control shall be capable of initiating an alarm at a maximum of twenty-five (25%) of the lower explosive limit (LEL). This low level shall be for alarm purposes only.

(d) A high level setting of no greater than sixty percent (60%) LEL shall initiate appropriate sequences on the platform or structure.

(e) Fire (flame, heat, or smoke) sensors shall be installed in all enclosed classified areas.

(f) Additional information when required by the Supervisor.

(8)Electrical Equipment and Systems. The following requirements shall be applicable to all electrical equipment and systems installed on platforms, fixed structures, and mobile drilling facilities:

(a) All electrical generators, motors, and lighting systems shall be installed, protected and maintained in accordance with the most current edition of the National Electrical Code and API RP 500, or subsequent revisions thereof.

(b) Marine-armored cable or metal-clad cable may be substituted for wire in conduit in any area.

(c) Additional information when required by the Supervisor.

(9)Certification. The following certification signed and dated with the title of the company representative: "(Operator) certifies that the design and installation of the safety and pollution control equipment and procedures in section (5), the fire fighting system in section (6), the automatic detector and alarm system in section (7), and the electrical equipment and systems in section (8), to be installed on (platform or structure identification number) have been approved by qualified personnel including a registered professional engineer(s) and that future modifications and maintenance of these systems will be in accordance with acceptable industry standards."

Ala. Admin. Code r. 400-2-6-.10

New Rule: Filed April 11, 2000; effective May 16, 2000. Amended: Filed June 28, 2011; effective August 2, 2011.

Previous Chapter 400-2 (Rules 400-2-X-.01 through 400-2-X-.09) Repealed and New Chapters400-2-1 through 400-2-9adopted in lieu thereof: Filed April 11, 2000.

Author: State Oil and Gas Board

Statutory Authority:Code of Ala. 1975, §§ 9-17-1, etseq.