BREAKOUT TANK INSPECTION FORM

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BREAKOUT TANK INSPECTION FORMA completed Standard Inspection Report is to be submitted to the Director within 60 days from completion of the inspection. APost Inspection Memorandum (PIM) is to be completed and submitted to the Director within 30 days from the completion of theinspection, or series of inspections, and is to be filed as part of the Standard Inspection Report.Inspection ReportInspector/Submit Date: Kuang Chu/7/18/2012Post Inspection MemorandumInspector/Submit Date:Peer Review/Date:Director Approval/Date:Inspection ReportPost Inspection MemorandumInspector/Submit Date:ChiefEngineerReview/ Joe Subsits/7/19/12Peer Review/Date:Date:Director Approval/Date:POST INSPECTION MEMORANDUM (PIM)30781Name of Operator: Olympic Pipe Line CompanyOPID #:Intrastate LateralsName of Unit(s):Unit #(s): N/ARecords Location: Renton, WAActivity # N/AUnit Type & Commodity: Intrastate Hazardous Liquid transporting refined petroleum productsInspection Type: Unit InspectionInspection Date(s): June 18 – 22, 20125PHMSA Representative(s): Kuang Chu/UTCAFO Days:Summary:There are 3 breakout tanks for the laterals, one each at the Seattle Delivery Facility (DF) (T-102), Tacoma DF (T-103), andVancouver DF (T-107).Findings:There were no probable violations. The concrete containment and impoundment area inside the dike at the Seattle DF was completedin late 2010 and it appeared to be in good condition. The concrete containment and impoundment for the Tacoma breakout tank wascompleted several years ago and an API 653 In-Service inspection was conducted in July 2011. The inspector noted narrow radialcracks on the concrete apron. The BP Tank Specialist in Chicago reviewed the inspection report and had scheduled the repair beforethe end of 2013. However, the Olympic Area Team Leader decided to repair the cracks immediately and completed the repair withina week after the inspection. A similar API 653 In-Service inspection was conducted for the breakout tank T-107 in Vancouver DF inJuly 2011 and the inspector had noted voids between chime and the concrete foundation in the inspection report. The BP TankSpecialist in Chicago reviewed the report and had scheduled the repair before the end of 2013.Company System Maps (copies for Region Files):Validate SMART Data (components, miles, etc):Acquisition(s), Sale or New Construction(submit SMART update):Validate Additional Requirements Resulting From Waiver(s) or Special Permit(s):Page 1 of 12Form-10 Breakout Tank Inspection Form (Rev. 03/17/11 through Amdt. 195-95).

BREAKOUT TANK INSPECTION FORMName of Operator: BP Olympic Pipe Line CompanyOP ID No. (1) 30781HQ Address:BP Pipeline (North America), Inc28100 Torch ParkwayWarrenville, IL 60555Unit ID No. (1)System/Unit Name & Address: (1)BP Olympic Pipe Line Company2201 Lind Avenue SW, Suite 270Renton, WA 98055Steve Pankhurst, PresidentCo. Official:Activity Record ID #:(630) 536-2161Phone No.:Phone No.:(630) 536-2653Fax No.:Fax No.:Emergency Phone No.: (800) 362-6742Emergency Phone No.:Persons InterviewedTitleJim BruenDOT Compliance AdvisorKen CarltonCentral Area Team LeadJeff BerrySouth Area Team Lead(360) 371-1744(360) 371-1697(800) 362-6742Phone No.630 536-2535206 510-0589206 510-0562PHMSA Representative(s) (1)Inspection Date(s) (1)Company System Maps (Copies for Region Files):Comments:There were no probable violations found during this inspection. The unit should be inspected on a two-year cycle.For hazardous liquid operators, the attached evaluation form should be supplemented withPHMSA Form 3 and 49 CFR 195 during PHMSA inspections.1Information not required if included on page 1.Page 2 of 12Form-10 Breakout Tank Inspection Form (Rev. 03/17/11 through Amdt. 195-95).

BREAKOUT TANK INSPECTION FORMDesign and New Construction of Aboveground Breakout Tanks.132SU(a) Each aboveground breakout tank must be designed and constructed to withstand the internal pressureproduced by the hazardous liquid to be stored therein and any anticipated external loads.N/A N/Cx(b) After Oct. 2, 2000 compliance with paragraph (a) above requires:(1) Shop-fabricated, vertical, cylindrical, closed top, welded steel tanks with nominal capacities of 90to 750 barrels and with internal vapor space pressures that are approximately atmospheric must bedesigned and constructed in accordance with API Specification 12F, (11th edition, November 1,1994, reaffirmed 2000, errata February 2007).x(2) Welded, low-pressure (i.e., internal vapor space pressure not greater than 15 psig) carbon steeltanks that have wall shapes that can be generated by a single vertical axis of revolution must bedesigned and constructed in accordance with API Standard 620, (11th edition, February 2008,addendum 1 March 2009).(3) Vertical, cylindrical, welded steel tanks with internal pressures at the tank top approximatingatmospheric pressures (i.e., internal vapor space pressures not greater than 2.5 psig, or not greater thanthe pressure developed by the weight of the tank roof) must be designed and constructed in accordancewith API Standard 650, (11th edition, June 2007, addendum 1, November 2008).(4) High pressure steel tanks (i.e., internal gas or vapor space pressures greater than 15 psig) with anominal capacity of 2000 gallons or more of LPG must be designed and constructed in accordancewith API Standard 2510, (8th edition, 2001).xxxComments:This inspection only reviewed intrastate requirements. The 191 and 195 requirements were not checked. They are under TeamO&M inspection and will not be repeated during this inspection.Tank Repairs, Alterations, and Reconstruction Procedures.205SUN/A N/C(a) Aboveground breakout tanks repaired, altered, or reconstructed and returned to service must be capableof withstanding the internal pressure produced by the hazardous liquid to be stored therein and anyanticipated external loads.The repair/alteration history includes all data accumulated on a tank from the time of its constructionwith regard to repairs, alterations, replacements, and service changes (recorded with serviceconditions such as stored product temperature and pressure). These records should include the resultsof any experiences with coatings and linings.x(b) After Oct. 2, 2000 compliance with paragraph (a) above requires:(1) Tanks designed for approximately atmospheric pressure, constructed of carbon and low alloy steel,welded or riveted, and non-refrigerated built to API Standard 650, or its predecessor Standard 12C,must be repaired, altered, or reconstructed according to API Standard 653, (3rd edition, December2001, addendum 1 (September 2003), addendum 2 (November 2005), addendum 3 (February2008), and errata (April 2008)).(2) Tanks built to API Specification 12F, or API Standard 620, the repair, alteration, andreconstruction must be in accordance with the design, welding, examination, and material requirementsof those respective standards.xxTanks built to API 620 may be modified by the design, welding examination and testing provisions ofAPI 653 in proper conformance with the stresses, joint efficiencies, material and other provisions inAPI standard 620.(3) For high pressure tanks built to API Standards 2510, repaired, altered, or reconstructed will be inaccordance with API 510, (9th edition, June 2006).Comments:Page 3 of 12Form-10 Breakout Tank Inspection Form (Rev. 03/17/11 through Amdt. 195-95).x

BREAKOUT TANK INSPECTION FORMImpoundment, Protection Against Entry, Relief, and Venting Procedures.264SU(a) A means must be provided for containing hazardous liquids in the event of spillage or failure of anaboveground breakout tank. Containment and impoundment are effective means of controllingenvironmental releases and fires.N/A N/Cx(b) (1) For tanks built to API Specification 12F, API Standard 620, and others (such as API Standard650 or its predecessor Standard 12C), the installation of impoundment must be in accordance with thefollowing sections of NFPA 30, Flammable and Combustible Liquids Code, (2008 edition, approvedAugust 15, 2007):(i) Impoundment around a breakout tank must be installed in accordance withSection 3.2.3.2; andx(ii) Impoundment by drainage to a remote impounding area must be installed inaccordance with Section 4.3.2.3.1.x(2) For tanks built to API Standard 2510, the installation of impoundment must be in accordance withSection 5 or 11 of API Standard 2510, (8th edition, 2001).x(c) Aboveground breakout tank areas must be adequately protected against unauthorized entry.x(d) Normal/emergency relief venting must be provided for each atmospheric pressure breakout tank. Eachlow-pressure and high-pressure breakout tank must have pressure/vacuum-relieving devices.x(e) For normal/emergency relief venting and pressure/vacuum-relieving devices installed on abovegroundbreakout tanks after October 2, 2000, compliance with paragraph (d) of this section requires thefollowing for the tanks specified:(1) Normal and emergency relief venting installed on atmospheric pressure tanks built to APISpecification 12F, Specification for Shop Welded Tanks for Storage of Production Liquids, mustbe in accordance with Section 4, and Appendices B and C, of API Specification 12F, (applicableedition IBR at time of installation).x(2) Normal/emergency relief venting installed on atmospheric pressure tanks (such as those built toAPI Standard 650 or its predecessor Standard 12C) must be in accordance with API Standard2000, Venting Atmospheric and Low-Pressure Storage Tanks Nonrefrigerated and Refrigerated,(applicable edition IBR at time of installation).x(3) Pressure-relieving and emergency vacuum-relieving devices installed on low pressure tanks builtto API Standard 620 (Design, Construction, Large, Welded, Low-Pressure Storage Tanks) mustbe in accordance with Section 9 of API Standard 620 and its references to normal and emergencyventing requirements in API Standard 2000, (applicable editions IBR at time of installation).(4) Pressure and vacuum-relieving devices installed on high pressure tanks built to API Standard2510, Design and Construction of LPG Installations, must be in accordance with Sections 7 or 11of API Standard 2510, (applicable edition IBR at time of installation).xxComments:Pressure Test Procedures/Pressure Testing Aboveground Breakout Tanks.307(a) Aboveground breakout tanks built to API Specification 12F and first placed in service after October 2,2000, pneumatic testing must be in accordance with section 5.3 of API Specification 12F (applicableedition IBR at time of testing).(b) Aboveground breakout tanks built to API Standard 620 and first placed in service after October 2,2000, hydrostatic and pneumatic testing must be in accordance with section 7.18 of API Standard 620(applicable edition IBR at time of testing).(c) Aboveground breakout tanks built to API Standard 650 and first placed in service after October 2,2000, hydrostatic and pneumatic testing must be in accordance with section 5.3.5 of API Standard650 (applicable edition IBR at time of testing).(d) Aboveground atmospheric pressure breakout tanks constructed of carbon and low alloy steel, weldedor riveted, and non-refrigerated and tanks built to API Standard 650 or its predecessor Standard 12Cthat are returned to service after October 2, 2000, the necessity for the hydrostatic testing of repair,alteration, and reconstruction is covered in section 12.3 of API Standard 653, (applicable editionsIBR at time of testing).Page 4 of 12Form-10 Breakout Tank Inspection Form (Rev. 03/17/11 through Amdt. 195-95).SUN/A N/Cxxxx

BREAKOUT TANK INSPECTION FORMPressure Test Procedures/Pressure Testing Aboveground Breakout TanksSUN/A N/C(e) Aboveground breakout tanks built to API Standard 2510 and first placed in service after October 2,2000, pressure testing must be in accordance with ASME Boiler and Pressure Vessel Code, SectionVIII, Div.1 or 2, (applicable edition IBR at time of testing).310x(a) A record must be made of each pressure test required by this subpart, and the record of the latest testmust be retained as long as the facility tested is in use.(b) The record required by paragraph (a) of this section must include:(1) The pressure recording charts;(2) Test instrument calibration data;(3) The name of the operator, the name of the person responsible for making the test, and thename of the test company used, if any;(4) The date and time of the test;(5) The minimum test pressure;(6) The test medium;(7) A description of the facility tested and the test apparatus;(8) An explanation of any pressure discontinuities, including test failures, that appear on thepressure recording charts;(9) Where elevation differences in the section under test exceed 100 feet (30 meters), a profile ofthe pipeline that shows the elevation and test sites over the entire length of the test section; and(10) Temperature of the test medium or pipe during the test period.xxComments:BREAKOUT TANK PROCEDURES.402(c)(3).404(a) Operator shall maintain current maps and records of its pipeline systems that include at leastthe following information; (1) Location and identification of (i) breakout tanks.405(a) Provide protection against ignitions arising out of static electricity, lightning, and straycurrents IAW API Recommended Practice 2003, Protection Against Ignitions Arising Outof Static, Lightning, and Stray Currents, (7th edition, January 2008).405(b) Review, consider, and incorporate into operator’s procedure manual, the potentially hazardousconditions, safety practices and procedures associated with access/egress onto floating roofsIAW API 2026, Safe Access/Egress Involving Floating Roofs of Storage Tanks InPetroleum Service, (2nd edition, April 1998, reaffirmed June 2006).422 Repairs shall be made in a safe manner and made so as to prevent damage to persons orproperty.428(a) Inspect and test each overfill protection system, pressure limiting device, relief valve, pressureregulator, or other pressure control equipment (annually/NTE 15 mo), except as provided inparagraph (b) of this section.428(b) In the case of or relief valves on pressure breakout tanks containing HVLs, operator shall testeach valve at intervals not exceeding 5 years.428(c) Aboveground breakout tanks constructed or significantly altered according to section 5.1.2 of API Standard2510 after October 2, 2000, must have an overfill protection system according to5.1.2 of API Standard 2510, (8th edition, 2001). if (600 gallons or more) constructed or significantly altered after October 2, 2000,must have overfill protection according to API Recommended Practice 2350,Overfill Protection for Storage Tanks in a Petroleum Facility, (3rd edition,January 2005).Eachoperatorshall maintain adequate firefighting equipment at each breakout tank area. The.430equipment must be–(a) In proper operating condition at all times;(b) Plainly marked so that its identity as firefighting equipment is clear; and(c) Located so that it is easily accessible during a fire.Page 5 of 12Form-10 Breakout Tank Inspection Form (Rev. 03/17/11 through Amdt. 195-95).SUN/AN/Cxxxxxxxx

BREAKOUT TANK INSPECTION FORMBREAKOUT TANK PROCEDURESSU.432(b) Each operator shall inspect the physical integrity of in-service atmospheric and low-pressuresteel aboveground breakout tanks according to API Standard 653, (3rd edition December2001, includes addendum 1 (September 2003), addendum 2 (November 2005), addendum3 (February 2008), and errata (April 2008). However, if structural conditions preventaccess to the tank bottom, the bottom integrity may be assessed according to a plan includedin the operations and maintenance manual under '195.402(c)(3).-Owner/operator visual, external condition inspection interval not to exceed one month (morefrequent inspections may be needed based on conditions at particular sites)-External inspection, visual, by an Authorized Inspector at least every five years or at thequarter corrosion rate life of the shell, whichever is less.-External ultrasonic thickness measurement of the shell based on the corrosion rate. If thecorrosion rate is not known, the maximum interval shall be five years.Are corrosion rate-based internal inspection intervals established in accordance with API 653,and in no case exceed 20 years? (Unless Risk-Based Inspection alternative is applied).If tank bottom upper or lower side corrosion rate is unknown, the Out of Service inspectioninterval shall not exceed 10 years.432(c) Each operator shall inspect the physical integrity of in-service steel aboveground breakouttanks built to API Standard 2510 according to section 6 of API 510.432(d) The intervals of inspection specified by documents referenced in paragraphs (b) and (c) of thissection begin on May 3, 1999, or on the operator's last recorded date of the inspection,whichever is earlier.434 Maintain signs visible to the public around each breakout tank area. Each sign must containthe name of the operator and a telephone number (including area code) where the operator canbe reached at all times.436 Operator shall provide protection for each breakout tank area and other exposed facility (suchas scraper traps) from vandalism and unauthorized entry.438 Operator shall prohibit smoking and open flames in each breakout tank area where there is apossibility of the leakage of a flammable hazardous liquid or of the presence of flammablevapors.N/AN/CxxxxxxxxxxComments:Corrosion Control Procedures.402(c)(3).563(d) Breakout tank areas, bare pipelines, and buried pumping station piping must have cathodicprotection in places where previous editions of this part required cathodic protection as aresult of electrical inspections.565 Breakout Tank CP installation After 10/02/2000, required cathodic protection systems toprotect above ground breakout tanks over 500 bbl capacity, shall be installed in accordancewith API RP 651, (3rd edition, January 2007).571 Cathodic Protection (CP) Acceptance Criteria CP levels must comply with NACEStandard RP0169-96 (paragraphs 6.2 and 6.3), (reaffirmed March 15, 2007).573(d) Breakout Tank CP inspections Cathodic protection systems used to protect breakout tanksmust be inspected in accordance with API 651, (3rd edition, January 2007).11.3.2 Cathodic Protection Surveys – Annual CP surveys are required. Surveys may include oneor more of the following:1. Structure to soil potential.SUN/A N/Cxxxxx2. Anode current.x3. Native structure to soil potentialsx4. Structure-to-structure potentialx5. Piping-to-tank isolation if protected separately.x6. Structure-to-soil potential on adjacent structures.xPage 6 of 12Form-10 Breakout Tank Inspection Form (Rev. 03/17/11 through Amdt. 195-95).

BREAKOUT TANK INSPECTION FORMCorrosion Control ProceduresSUN/A N/C7. Continuity of structures if protected as a single structure.x8. Rectifier DC volts, DC amps, efficiency, and tap settings.xRectifier Inspections:- Every 2 months. – (Inspections should include a check for electrical shorts, groundconnections, meter accuracy, and circuit resistance).11.3.3.4 Tank Bottoms – Tank bottom should be examined for evidence of corrosion wheneveraccess to the bottom is possible. (During repairs, modifications, during API653 inspections)Examinations may be done by coupon cutouts or nondestructive methods.577(a) Interference Currents For breakout tanks exposed to stray currents, is there a program tominimize the detrimental effects?.579(d) Breakout tank – internal corrosion mitigation After October 2, 2000, tank bottom liningsinstalled in tanks built to API 12F, API 620, API 650, or its predecessor 12C must beinstalled in accordance with API RP 652 (3rd edition, October 2005).581(c) Atmospheric Corrosion Protection Except for soil-to-air interfaces, atmospheric corrosionprotection is not required where it is demonstrated by test, investigation, or similarenvironmental experience; that corrosion will –(1) Only be a light surface oxide; or(2) Not affect the safe operation of the pipeline before the next scheduled inspection.583(a) Atmospheric Corrosion Monitoring I

BREAKOUT TANK INSPECTION FORM Page 1 of 12 Form-10 Breakout Tank Inspection Form (Rev. 03/17/11 through Amdt. 195-95). . API 653 in proper conformance with the stresses, joint efficiencie (a) of withstanding the internal pressure produced by the hazardous liquid to be stored therein and any anticipated external loads. The repair/alteration history includes all data accumulated on a tank from .

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