Democratic and Popular Republic of Algeria

Liquid Hydrocarbons Transport Pipelines Safety Regulation

October 1991

General Provisions of the Regulation Article 1: The aim of the present safety regulation is to set out the main rules governing the construction and operation of liquid hydrocarbons transport pipelines (1) from a flash point of 100C at most, except for works left out from article 2. Works Excluded from the Regulation Article 2: The present regulation does not apply to pipelines or pipeline sections made of at least 3.5 mm thick tubes, when the maximum operating pressure does not exceed 4 kgf/cm2 or the P.D output of the P maximum operating pressure, stated in kgf/cm2, by the D external diameter of the tube, stated in millimeters, does not exceed, for none of the transported products, the following values: - 2000 if the pipeline or the considered section lies within zone I, as per the definition given in article 4, - Or 3000 if the pipeline or the considered section lie within zones II or III. If a pipeline section is located in zone I, the value 2000 applies to the whole section encompassing this part. The section designates a pipeline length between two flange joints that can, thus, be separated during testing. Gathering stations, when assembled by screwed bushings, are excluded from the regulation in hand. Building and operation of liquid hydrocarbons transport works, other than those provided for by the present regulation provisions and those that should be object of the aforementioned specific prescriptions, must comply with the prevailing rules, despite they can be object, if need be, of the specific prescriptions enacted by the Ministry of Energy and Mines. -----------------------------------------------------------------------------------------------------------------(1) Pipeline is a work made of one or several pipes feeding one or many terminals, and can contain one or more pumping stations. -----------------------------------------------------------------------------------------------------------------Delivery Pressure Article 3: The maximum delivery pressure from a pumping station should not lead to overflowing the in- service delivery pressure bearable for upstream tubes and pipes fittings. When the pipeline is telescopic, that is when calculating the nominal thickness of the different sections takes account of pressure drops, adequate devices should be used to prevent untimely clasp of a pipe section during pumping from overflowing delivery pressure bearable in downstream sections. Pipe Location

Article 4: Pipe locations are spread into three zones: Zone I: consists of locations within urban suburbs or close to remote premises manned by posted staff or visited by public. These locations are defined as situated in: Less than 40 km far from a premises hosting more than 200 people or non oil or gas facilities entailing fire or explosion. Less than 15 km far from a block of flats other than those mentioned in the previous subparagraph. The latter limit might, however, be reduced to 10 m when the block of flats in question is remote that is situated at more than 200 km from any posted staff manned premises. In any case, public domain will be considered as belonging to zone I which also implies pipelines within oil facilities.

Zone II: consists of locations within rural areas, pasturelands, agricultural lands, forests and suburbs vicinity. Zone III: consists of locations situated in desert areas. The division of these areas is set by the pipeline transport company (PTC). PTC consults the relevant department of the Ministry of Energy and Mines.
TITLE II

Factory-made Tubes Metal specifications and Constraints limits for Tubes and Fittings
Tubes Metal Quality

Article 5: Pipes are made up of seamless or welded tubes. Tubes are of Martin steel, Thomas steel or carbonized steel of equivalent technical quality, especially in terms of aging stability. Sheets used in manufacturing welded tubes must be of regular commercial quality and free from blatant coppering on edges or faces. The same applies to strip steel or flat bars used in manufacturing spiral (helical) welded tubes. The metal must be easily welded on site, given the prevailing manufacturing technique. Once the overall tubular elements manufacturing is completed, the elongation A, measured in lengthwise test tubes according to the agreed standard, must fulfill the following conditions: A > 18 % if the tubular element is designed to be laid in a location within zones II and III, or situated in an area prone to ground movements, as provided for in article 22 of the regulation in hand. A > if the tubular element is meant to be laid in a location within zones II and III, and is not situated in a field prone to ground movements. Moreover, the elasticity limit E should no exceed the following values: * 90 % of the breaking load R in case of a steel seamless welded tubes. * 85 % of the breaking load in case of rolled and welded sheets, with or without cold 3

drawing. The measure of E 0.2 is regulated in article 7. (1) The elasticity limit E 0.2, considered in the present regulation, is the load quotient, stated in kgf, which provokes a remanent extension of the initial length between coupon marks as defined in article 7. Welded Tubes specifications Article 6: Welded tubes are factory-made of curved sheets or strips, and butt jointed by fusion or resistance as per a pipeline welding generator or a helix. Welding is followed by a strain hardening through dilatation or pinching, when we want to increase the elasticity limit. Tubes can be manufactured by stubbing two welded ferrules, provided that the shortest one is at least 1.50 m. The gasket nominal coefficient a, that is to say, the ratio between the unit breaking load of the assembly and the unit breaking load of the finished tube metal, is fixed by the agreed standard. Checking this coefficient, that should not be lower than 0.6, is regulated by article 11. Tubes Stress Rate Article 7:

The maximum operation pressure acceptable for each tube is equivalent to the metal corresponding transverse constraints t, stated in kgf/mm and calculated by means of the ratio defined in article 8. This pressure is limited compared to the elasticity limit E0.2 and the unit breaking load R, also stated in kgf/mm, as per the following values:

LOCATIONS

T/E 0.2 T/R (Buried or surface pipe) Buried pipe Surface pipe (Except for onground crossings of stateowned properties, covered by article 24 C) 0,44 0,44 0,65

ZONE I ZONE II ZONE III

0,67 0,75 0,82

0,47 0,59 0,65

The elasticity limits E0.2 and the breaking unit load R relate to the finished tube metal at an ordinary temperature. The specifications E 0.2 and R are measured by test coupon sampled from finished tubes of initial length ranging between marks LO = 5.65 S0, where S0 designates the initial section of the calibrated section. The aforementioned stress rates limits can be increased by 10 % in case of incidental dynamic suppression; notably of water hammer.

Tubes Dimension

Article 8: A/- Thickness: the tubes thickness E, the external maximum diameter D, the liquid pressure P and the metal transverse stress T are measured by the ratio: P.D E = -------2 TX Where P and T, on the one hand, D and E, on the other hand, are respectively stated in the same X unit as a coefficient equal to 1 for seamless tubes, or equal to gasket nominal coefficient E for welding defined in article 6. Tubes thickness E and that set by the specifications, cut from wall thickness tolerance, except for welding reinforcement, are determined by the agreed standard. In case of welded tubes, the welding reinforcement should not exceed 3 mm and the internal rim is removed at both edges along 80 km length, due to the slight tie-in slope that should be left by the grinding. Tubes should not show external defects the depth of which exceeds eight of the thickness E. B/- Diameter: manufacturing tolerance of external diameter is set by the agreed standard. Each tube wall should not show local depression of more than 6mm depth or affecting a surface the larger chore of which exceeds half the diameter D. C/- Trail: Tubes should be suitably straight. Dimension control can be carried out according to the agreed standard. Chamfering of Tubes Edges Article 9: Tubes of 3mm thickness at most in case of arc-welded joint and of 4mm in case of oxyacetylene welding may be finished by a straight chamfer-free fraction. For other tubes, the edges are chamfered by machining or mechanical oxygas cutting, according to an angle of 30 to 35, measured perpendicularly to the axis of the tube so as to perform, on both edges, a flat surface of 0.8 to 2.4 mm. If the chamfering develops a double wall, defective part should be dropped. The straight cut or the flat surface should be plane and this flat surface, slightly perpendicular to the right, connects the middle of the terminal sections. Fittings Article 10: Valves, ball valves and check valves are made up of steel, bronze or special material if required by operation conditions. Working pressure on valves and other fittings embedded in the pipes should be at least equal to the maximum aforementioned pressure expected in operation: it is guaranteed

by the manufacturer.

TITLE III Tubes and Fittings In-factory Tests Gasket Coefficient Check for Welded Tubes Manufacturing

Article 11: The PTC (1) determines in factory the actual weld gasket coefficient, defined as the ratio between the nominal unit breaking load of the test coupon, referred to in the following subparagraph, and the nominal unit breaking load indicated by the agreed standard for the finished tube metal. This determination is made by pulling tests A and cutting on transverse test coupons from finished tubes, so that the welding takes up the middle of the test coupon. Batch sampling is carried out on test coupon test as follows: 400 tubes, when the diameter D is, at most, equal to 170 mm, 200 tubes when D ranges between 170 mm and 320 mm, 100 tubes when D is, at least, equal to 320 mm. Tubes made up of butted ferrules count double. Results of the test are deemed satisfactory when a 1 is at least equal to 1+ a2. (1) In the regulation in hand, the PTC refers to any legal entity or natural person undertaking the construction or operation of a liquid hydrocarbons transport pipeline. When it is not finished, the batch is rejected if a is equal to 0.6. However, if a is higher, the test is repeated on three other test coupons, the value a 2 carried for a1 being the smallest one among the values achieved during the four test coupons. If a2 is below 0.8, the batch is rejected. If a2 is at least equal to 0.8, the batch is accepted. Nevertheless, it can be used only in the pipe section where the maximum pressure acceptable in service and the metal transverse constraints are linked by the

ration mentioned in article 8, where X is replaced by 2 a2-1. Weld Checks Article 12: In-factory welds are checked and mended, when necessary, by the tubes manufacturer as per a technique approved by the Expert or the registered organization. This technique aims at spotting any defect that may endanger the tubes operation safety. When the gasket nominal coefficient a, stated by the agreed standard, is at least equal to 0.8, manufacturing welds are subjected to an additional check. As regards lengthwise and helical welds, checks are carried out in transverse test coupons, sampled under the conditions set forth in the second subparagraph of article 11, except for those the ratio of which is one test coupons per 500 meters of welded tubes. Checks are undertaken by means of flare tests (tests B), when the welded tubes external diameter is at least equal to 150 mm, or by means of bend tests (test C) in other cases. As regards girth welds of buttered ferrules, checks are carried out by pulling tests (test D) on lengthwise test coupons, overlapping the weld and sampled at the rate of one test coupon per 200 buttings. However, this test coupon sample may be substituted by a radiographic test (test E) on one percent of the buttings. Just one lengthwise test coupon is sampled for a mechanical test aiming at checking, on the one hand, that the used electrodes fit well to the tubes steel grade and, on the other hand, that the weld is rightly implemented. The method of test coupon sampling, identification of tests B, C, D and E, as well as required results should adhere to the agreed standards requirements. Welded Tubes Choc and Notch Failure Characteristics Article 13: After being through an expander or a ground decreasing roll-mill, welded tubes are subjected to a choc failure and notch failure characteristics measurement, following an artificial aging (test F). The test F is made on transverse test coupon cut right onto steel metal in the spot facing the weld, at the rate of three per one tube, sampled from 400 tubes. When the tubes thickness is more than 10 mm, test coupon thickness is reduced to 10 mm by stubbing the external surface. The test F, identified in the agreed standard, is designed to provide technical information.

Tubes Test Article 14: Tubes manufacturer undertakes, in factory and under its responsibility, a hydraulic testing on every tube at the pressure fixed by the Expert or the agreed organization. The latter pressure should be such that the transverse constraints T, calculated through the ratio mentioned in article 8, is at least equal to 60 % of the elasticity limit E 0.2 and, at most, equal to 90 % of this limit. The test lasts 15 seconds. Only tubes the test of which has revealed no obvious distortion or defect are accepted by the Expert or the agreed organization. Nevertheless, when the manufacturer has repaired the weld defect after a test, the Expert or the agreed the organization might accept the tube if its defect, its repair and the possible repeat of its test fulfill the technical requirements of the agreed standard. Fittings Test Article 15: Elbows manufactured with the tubes accepted by the Expert or the agreed organization, in the conditions of the article 14, undergo no test at the manufactures. Other elbows, joints, substitutes and tees are subjected, in factory, to a hydraulic testing under the conditions of the article 14. Gates valves, taper plug cocks and check valves undergo, in factory, a hydraulic pressure, at least equal to 120 % of the maximum pressure expected in service, without that test pressure causing, at a set spot, constraints exceeding 90 % of the metal elasticity limit. They are accepted by the Expert and the agreed organization if they stand this test pressure without any leak or distortion for an acceptable spell. Tubes and Fittings Marking Article 16: Tubes which passed the test referred to in article 14, along with the elbows manufactured in factory from tubes accepted by the Expert or the agreed organization, under the conditions fixed in the aforementioned article, bear one or several indelible and distinguishing marks allowing their identification as per requirements of the agreed standard. Other fittings accepted by the Expert or the agreed organization under the conditions set forth in subparagraph 3 of article 15 also bear an indelible identification mark. In-Factory Test Reports Article 17: The PTC files, in its archives, the reports of in-factory tests and those mentioned in articles 11,12,13,14 and 15, as well as justifications drawn up by the manufacturer of tubes as regards steel quality and the specifications mentioned in articles 5 and 7. A copy of these reports is handed over to the Ministry of Energy and Mines.

TITLE IV Pipe laying, operation and maintenance regulation Underground Pipe Laying Article 18: The pipe is generally buried, except in particular cases such as those presented in the last subparagraph of paragraph b and the first subparagraph of paragraph c of article 25. The pipe is in principle grounded in other locations within zones I and II. All arrangements are made during the pipe laying so that it is perfectly fitted into the trench and does not undergo, once laid, unusual pressures. In zone I, the overlay height that is the vertical distance between the surface and the Pipeline welding generator is of 80 cm at least. In zone II, the overlay height is 80 cm at least, in the absence of local environment constraints, such as welding, thin topsoil, presence of drainage system or catchments area. In the event of environment constraints, the overlay height is fixed after consulting the relevant public administration. The height should not be below than 40 cm or higher than 100 cm. When the fields in zone II are intermittently ploughed, for instance, low lands ploughed after rainfall, the pipe should be grounded and the overlay height should be fixed as per the previous subparagraph. Surface Pipeline Laying Article 19: In some special cases pertaining to public domain, mainly those provided for in the last subparagraph of paragraph b and the first subparagraph of paragraph c of the article 25, such as locations in zone I, that are outside the public domain and within zone II, a section of the pipe may be laid straight on the ground as per conditions fixed in article 7, if the type of the field or any technical reasons warrant it. The PTC makes all the provisions to limit the consequences of additional constraints on the pipeline, notably those stemming from temperature changes. Pipeline Upstream and Downstream Pumping Stations Article 20: The PTC have to make all the necessary arrangements to deal with vibrations induced by pumping stations on pipes sections laid upstream and downstream these stations. Underground Works Neighboring Article 21: When the pipe is buried near to neighboring works, such as piping or cables of different sorts, the pipeline is sheltered so as to prevent damages that might be caused by operation of theses works. The minimum measurements to observe between the nearest pipeline welding generator and the works are as follows:

* 0.40 m for: - Non metallic piping for gas or non burning liquid transport. - Telecommunication lines. * 0.50 m for: - Metallic piping for gas or non burning liquid transport. - Electric power transport cables. * 0.60m for: - Metallic and non metallic piping for gas or non burning liquids transport. * 3 m for: - Earth electrodes of electric power overhead lines transport or other facilities. When the buried piping crosses an underground telecommunication line, it is laid above it and is overlaid by a reinforced coating 3 meters around the crossing point. When it is intended to cross the pipeline, before laying it, with new hydrocarbons, gas, water or electric power piping, or grounded telecommunication lines, the pipeline is laid over these pipings so as to prevent them from any damages. Pipeline Laid on Ground Movement Fields Article 22: When the pipeline goes across ground movement prone field, the Ministry of Energy and Mines can compel the PTC, after studying the case, to make provisions so as to remedy the sagging. The quality of the steel used in manufacturing tubular elements should comply with the conditions of the article 5. Boundaries of ground movement prone fields are marked out by the relevant department or wilayate crossed by the pipeline. Article 23: High-voltage Lines Neighborhood

When the pipeline must cross a category 3 overhead line (1), or run alongside it within a horizontal measured distance and below the electric cables, while specific provisions are necessary, specially for some pylons grounding, the PTC must take measures helping make up for the drawbacks induced by the pipeline crossing or neighboring, under the provisions of the Article 26. Crossover of stream and canals outside of the property Article 24: When the pipeline is laid on a stream or canal banks outside the public domain, the PTC makes all the provisions enabling its preservation and ensuring the continuous water outflow. The PTC is responsible for any flood.

10

Article 25: When the pipeline must cross a part of the public domain, the PTC adheres to the following prescriptions which also cover restricted areas alongside department roads subject to booking scheme: A - Railways or road crossings are classified under two types: - The first type is applicable to highways and crossing railways - The second one is applicable to other roads, except for special cases. - For both crossings, the pipeline is outwardly sheltered by a reinforced coating. First type crossings are laid in a way to enable maintenance or change of the affected part of the pipeline, without digging trenches in the public domain. To that purpose, the pipeline is fitted in a sheath made of a steel tube, so as to stand up to strains induced by the overlying fillings and moving loads on the crossed road. The pipeline is laid at a certain depth so that the pipeline welding generator of the sheath is located at least: 1 m under the crossings for railway crossings; 1 m under the ground and 60 cm under the trenches for highway crossings. The sheath length is calculated in such a way that its edges are: 60 cm far from the land take for highways. 13 m far from the nearest rail for railways crossings.

The sheath internal diameter is 10 cm bigger than the pipeline. If the sheath is made of several elements, they should be butt-welded electrically or by fusion so as to make a tight set. Filling metal with the quality set in the first subparagraph of article 28, as well as welders must comply with the requirements of article 29. The pipeline is insulated from the sheath using an appropriate material. The gap between the pipeline and the sheath is left empty, except for the sheath edges which are sealed by a waterproof plug. Two breather valves are put close to the sheath plug edges. Each breather valve edge is fitted with bronze pressure pipe plug that can be unscrewed only by using a special wrench; it leads to a grounded work with a metal tight lid that can be removed only using special wrenches. However, when local conditions in highways crossing are not favorable to opening the metallic sheath, for instance, due to low under clearance, another crossing mode is undertaken as part of the aforementioned conditions. Crossings of second type are, in principle, placed without metallic sheath. The pipeline is laid under 10 cm sand layer and protected by a warning set consisting of a lean concrete cake of 10 cm thickness at least or a galvanized wire netting. Nevertheless, when the traffic at the crossing point is heavy and makes it necessary to dig a trench, and when the crossing point is made using a horizontal drilling, a metallic sheath is then laid as per the conditions indicated in the following subparagraph. In some special cases of crossings points within public roads, determination of the metallic sheath variant, the choice between the lean concrete layer and the warning wire netting, the resort to metallic sheath or to crossings provisions provided for in the previous subparagraph, are defined in the administrative instruction preceding the carrying out of

11

works and issued in the form of an order, agreement or any other form. b/- Lengthwise occupation of train ways, highways, county or important rural roads do not exceed 50 m length and should not affect: In case of a railway, the pipeline crossarm support area should be 2 meters far from the nearest rail and, at least, 1.50 meter from buildings and civil engineering works foundation, in case of a road. A galvanized wire netting designed to signpost the underground pipeline is placed between the pipeline welding generator and the ground level. When the underground pipeline must cross the right-of-way lengthwise, the trench dug to that effect should be 2 meters far from the slope crest if the railway is made of bank material. The trench meant for sheltering the pipeline is buried in a non clayey ground if the depth exceeds half the distance from the nearest railway and in a clayey ground if the distance is more than the former. In case of electric lines, trenches are dug away from the catenaries and provisions are made to prevent destabilizing catenaries blocks foundations. If the trench is dug less than 3.50 m from the pylons, the latter are shored up for the duration of works. Furthermore, if the trench is dug less than 1 m from the block foundation, it is filled with concrete. When the pipeline must be laid lengthwise the right-of-way and on surface, due to local conditions, the pipeline is, in principle, formed in a channel. If this solution is not applicable and the pipeline must be fixed to a work, this work resistance should not be affected by the used fixture material. Finally, if the pipeline must span a work crossed by a railway, it should be thoroughly sheltered by a sheath designed for rail crossing. C/ When the pipeline must span part of the maritime of fluvial public domain, the carrier company has to comply, as for roadways and railways crossing, with the regulation enumerated in paragraphs a and b. As regards pipeline bridges, the t/R ratio, defined in article 7 for tubes and pipelines, should be 0.33 at most. Piping hangers are also calculated according to a safety coefficient at least equal to 3. When the pipeline must cross a canal, it should not affect its outflow. When the pipeline is laid on waterway bank or port area, it must be formed in an excavation the depth of which is decided on by the Ministries of Public Works and of Transport. d/ In case of a very important crossing of public domain, the PTC must undertake the specific safety regulation required by the authorities in charge of these properties management. If these measures implied fitting the crossing edges with gate valves, these fittings must be placed out of public reach. For est Cro ssi ng Article 26: The pipeline should not cross paths of forests to lay category 3 overhead lines, barring derogation from the relevant administration.

12

Welding Article 27: Tubes on site are butt jointed electrically or by fusion. The internal alignment of the two tubes to assemble once curved and on the spot with the clamps, should not exceed 2 millimeters if the external diameter is at most equal to 513 millimeters or to 3 millimeters in the other cases. Oxyacetylene welding is, however, allowed when the pipeline external diameter is 100 millimeters at most, the thickness does not exceed 6 millimeters and the metal unit breaking load does not exceed 45 kgf/cm . Filling Metal Quality Article 28: In case of arc welding, filling material should suit the tubes steel grade and the welding technique. These materials lay a metal with mechanical specifications corresponding to the quality defined by the agreed standard and a breaking unit load equal to that of the finished tubes metal. They are stocked until using time as per hygroscopic conditions defined by the manufacturer. Welders Qualifications Article 29: Welding is entrusted exclusively to qualified welders having passed the professional aptitude test. They are monitored by a qualified staff and periodically subjected to assessment tests. Welding Implementation Article 30: The conditions of welding preparation, implementation and control are specified in a technical note handed over to each operating or monitoring agent. In case of oxyacetylene welding, the Contractor uses properly scrubbed acetylene. If a tube is double walled during welding, the assembly is interrupted and the defective part of the tube dropped. When the tubes are factory-welded according to a pipeline welding generator, the lengthwise weld beads of the butted tubes must be staggered with the assembly by about 45 so as to fit the upper section of the laid pipeline. Girth Weld Control Article 31: Welding must give the assembly an overall breaking resistance at least equal to that of the tubes. Moreover, the welding will be x-rayed (radiographic test) and the percentage of joints to be controlled must be: 100 % for tubular elements laid in zone I, 40 to 50 % for tubular elements laid in zone II, 13

10 % for tubular elements laid in zone III. At the beginning of works, destructive samplings are carried out every one hundred girth welding. The rate of sampling can be stepped down to one per 300 weldings as soon as welding quality is deemed satisfactory. Checking the quality of the girth welding is undertook using pulling tests (tests D). Pipeline sections tie-in weld will be subjected to a compulsory radiographic test. At the beginning of works, only one test coupon is sampled for a mechanical test intended to check, on the one hand, the adherence of the used electrodes to tubes steel grade, and, on the other hand, the welding proper implementation. This test is made at every change of electrodes type. Coupon sampling method, definition of tests D and E, as well as the required results are specified in the agreed standard. Flanged Joint Article 32: Butt joint can be replaced by flanged joint when necessary, notably for reasons of electrical insulation or dismantling easiness, provided that the breaking resistance, according to the pipeline axis, the flanges and bolting it consists of are, at least, equal to the sixth of that of the tubes. Materials used to ensure the proper sealing of joints must be non-putrescible and resistant to the effect of the ground, water, transported products and all other materials which could be put in contact with these joints. Cold Bended Elbows Article 33: The PTC can use cold manufactured elbows made of factory-curved tubes, accepted in factory as per the conditions set forth in article 14, when their curve central ray is 20 times higher than the tube internal diameter. Branch Connection Article 34: When a tube is holed in order to perform a branch connection, the tie-in is carried out using an adequate material so as to keep the resistance, in that spot, at a sufficient value. Corrosion Prevention and Monitoring Article 35: With a view to detect, follow up and limit the corrosive action of transported products or their impurities on the internal wall of the pipeline in zone I, the PTC takes the following provisions: - Either sets up, during the pipeline installation, indicators permanently bathing in the

14

transported liquid while undertaking control of the operation; - Or entrusts the routine inspection of mud originating from the pipeline to a specialized personnel in charge of applying particular instructions. When results of the control are positive, the PTC immediately takes measures to curve the corrosive action of the transported products. It can particularly use a corrosion inhibitor. External Corrosion Prevention Article 36: Buried pipelines must be sheltered from external corrosion by a coating (made of coal-tar pitch, petroleum asphalt, insulating plastic materials or other materials showing satisfactory specifications in terms of resistivity, adherence, plasticity, mechanical strength etc), a cathodic protection device, or all these means combined as per the following regulation: A/- Before laying the pipeline, the PTC checks its route and undertakes on-the-spot measures to determine the aggression of the route ground. b/- If these measures reveal a corrosion risk, the PTC must set up, as soon as possible, a cathodic protection device, taking into account the adopted coating. C/- In areas void of stray current, the PTC assesses the pipeline coating efficiency according to its potential value. In these areas, if the resistivity of the ground on which the pipeline is laid is lower than 80 ohm/m /m during a given spell of the year, the PTC must provide an efficient cathodic protection, one year at the latest after the grounding of the pipeline, whether it is coated or not. However, if the resistivity hovers between 20 and 80ohm/m /m and the pipeline is of short length or temporary, the PTC would be exempted from applying this prescription. d/- In areas where the PTC has set up a cathodic protection device, control of this device efficiency, at least twice a year and at well-thought-out spells, is incumbent upon the pipeline transport company. E/- If the PTC fears, after the pipe laying, an increase in the aggressivity of the route ground, it undertakes the relevant control measures. F/- When results of procedures indicated in paragraphs D and E reveals the need to a cathodic protection, the PTC should take all the provisions to set up such a device in an effective way. Corrosion Control Article 37: The PTC files in its archives the detailed reports of measures taken and annexes indicated in articles 35 and 36, as well as the provisions made to make up for noticed defects.

15

Scraper and Radioactive Indictors Use Article 38: Scrapers and radioactive indicators are used as per the regulation defined in an instruction issued by the pipeline transport company. Leak Detection and Maintenance works Article 39: Leak detection and maintenance works are carried out according to special safety regulation. Before any operation involving the use of open flames, the PTC makes the provisions helping avoid any explosion or fire risks. Moreover, when the maintenance of a hot products pipeline requires digging a trench, the former must be filled before resuming operation. During every pipeline inspection, to be undertaken at least once a year, the PTC has to control underground pipelines by unscrewing the sniffer screwed plug and make sure no leak is sprung. Accidents and Incidents Article 40: In the event of a pipeline-induced accident or an incident likely to endanger the public safety, the PTC takes all measures it deems urgent and immediately inform the Ministry of Energy and Mines, as well as the relevant authorities. Plans Complying Implementation Article 41: Once a hydrocarbons pipeline is completed, the PTC has to draw and update the plans of the pipeline route, pointing out ground elevation numbers, pipeline burying depth and pipeline location indicators. The plans must also highlight the pipeline coating diameter, thickness and type of material, as well as the location of protection devices mentioned in Articles 31, 32, 33 and 34. A copy of theses plans is forwarded to the Ministry of Energy and Mines and wilayate crossed by the pipeline, as well as the Ministry of Public Works as regards locations within public domain. (1) A category 3 electric cable is an electric line where the higher operating voltage existing between one of the wires and the ground transforming station is higher or equal to: 60.000 Volts in D.C. current. 33.000 Volts in AC current. In three-phase facilities, this tension is evaluated compared to the neutral point and is worth U, U being the RMS voltage between phases. 1/2 TITLE V

16

Tests and Noticing before operation Tests Organization Article 42: Before undertaking these tests, the PTC has to notice, through an agreed body, that facilities comply with safety regulation. Tests to which the PTC works must be subjected before operation revolve around resistance and sealing tests. Tests which will be subject to a detailed procedure, the methods of which are specified in article 43 hereafter, are carried out in the presence of one or several experts appointed by the relevant department of the Ministry of Energy and Mines. These experts must draw up and forward to the PTC reports detailing the results of the tests. The relevant departments of the Ministry of Energy and Mines can have, if they want to, an expert or a registered organization to represent them, by derogation, in the tests. During the tests, the PTC must envisage all useful provisions to guarantee public safety. Measures taken must be advertised. Sections will be 30 km length at most. Resistance and Seal Tests Article 43: The PTC must produce and maintain, in the pipeline section or the tested fittings for at least 24 hours, a test pressure equal to the weakest in-factory test pressures of the tubular elements and fittings making up the aforementioned pipeline section. If the in-factory test is not undertaken, the test pressure is subjected to the same strains as those exerted on the individual hydraulic testing pressure. The minimum test pressure of the pipeline section to be laid in zones I, II and III is equal to: Zone I and II Pr min = PMS X 120% Zone III Pr min = PMS X 110% Given these constraints, the test pressure must be as high as possible without exceeding the in-factory test pressure of tubular elements and fittings. Transporting the production is carried out by derogation of the Ministry of Energy and Mines. The test which uses water as a fluid must be started once the thermal balance of the pipeline section and the water is reached. During the test, the PTC has to check that pipeline pressure does not drop sharply. In view of the dips, checking it must be implemented on rather short sections so as the pressure keeps, at the highest points, a value equal to that of the aforementioned minimum test pressure.

17

Appurtenance works defined in the first article of the regulation in hand are subjected to a 2 hours resistance and seal tests under a pressure equal to that of zone I. Article 44: Gaskets to be checked

Gaskets the seal of which has not been checked during the tests, especially sections tie-in, are checked before completing the coating if need be, making sure there are no leaks in the assembled elements. The checking is done by back flowing one of the transported products under the minimum pressure expected in operation. Operation Regulation Article 45: For the pipeline section test defined in Article 43, account is taken of the used liquid density and the lengthwise profile of the pipeline. The used water must be suspended materials-free, but can be mixed with a corrosion inhibitor. Before the test, the pipeline must be filled so as to expel the air out of it. If a defect appears during a section test or a gasket check, the PTC must make up for it and repeat the test before stepping to the next pipeline or gasket. Any welding flaw must be bridged to the core by gouging or grinding, and then reinforced by arc or oxyacetylene welding which is allowed if already used in the assembly. The PTC files in its archives the reports of section tests specified in article 43 and the decennial test repetition defined in article 46, as well as gaskets check mentioned in article 44. The PTC should not start up the pipeline operation or part of the work only if section tests and gaskets check show satisfactory results. Decennial Tests Article 46: The test dealt with in article 43 is renewed every ten years with an equal pressure: - In zone I or II, the pressure is equal to 110% of the allowed maximum pressure in service, - In zone III, it is 105% of the allowed maximum pressure in service, - And so on as regards other regulation of the above mentioned article and article 45. The PTC can use one of the transported products. Moreover, when the pipeline is telescopic and that sections of different thickness are not fitted with gate valves allowing their insulation, seal checking is undertaken by back flowing one of the transported products with allowed maximum pressure in service.

18

TITLE VI Operation Conditions Modification Pipeline modification Article 47: Any change in the pipeline is made according to the rules highlighted in article 39, pertaining to maintenance work. When the modification implies replacing sections of the pipeline, each section is then subjected to a pneumatic test and, if necessary, to gasket checking under the pressure conditions and duration fixed in articles 42, 43 and 44. The PTC carries out the test and gasket checking once operation is possible and reports are filed in its archives. When the PTC undertakes a temporary tie-in during the pipeline modification, tubes, fittings and devices used must have passed an in-factory hydraulic testing under a pressure P and can be used only where the temporary local pressure in service is limited to: P P in locations within areas I or II. 1.2 in locations within area III. 1.1

Moreover, the welded assemblies must, before being hooked up to the pipeline, have successfully undergone a hydraulic testing under the pressure and duration conditions fixed in article 43. The PTC has to inform the Ministry of Energy and Mines, in the shortest possible time, of any repair carried out and provide it with a report on works and checks implemented. Article 48: The PTC can increase the maximum backflow pressure if the rates of tubes strains are confined to the values fixed in Article 7, if accessories mentioned in the second paragraph of article 15 underwent successfully in-factory hydraulic testing under a pressure at least equal to 120% of the new maximum pressure provided in service, and if a complementary test on the relevant fields yield satisfactory results as per articles 43 and 45, except for a pressure equal: In zone I or II, equal to 110% of the new maximum pressure provided in service; In zone III, to 105% of the new maximum pressure in service; Finally, controlling the gaskets to be checked must be done under the conditions defined in article 43. The PTC files, in its archives, the report of tests and gaskets control. TITLE VII Pumping Stations and Terminals General regulation

19

Article 49: Pipeline pumping stations and terminals are built and exploited, whatever their locations, in accordance with the rules governing the setting up of liquid hydrocarbons facilities. Moni tori ng Inst rume nts Article 50: Each pumping station is fitted with a pressure gauge indicating the backflow pressure. If the transported fluid is heated, a thermometer indicates the fluid temperature at the station. The maximum backflow pressure is clearly indicated in each pumping station. Suitable provisions are made to prevent exceeding the maximum backflow pressure and, in case of water hammer, to prevent overstepping, in any section of the pipeline, the constraints rates set forth in the last subparagraph Article 7. TITLE VIII In-line Block Valves Article 51: In-line block valves must be set up at least 30 meters far from residential and public buildings other non oil buildings that are classified, because of fire or explosion hazards, in the first category of hazardous, insalubrious or inconvenient buildings, as well as national defense facilities showing fire or explosion hazards. In-line block valves, their command instruments and the electric cables feeding the valve electric engine must be kept away from choc or other source of defect. A fence must be raised so as to put valves steering wheel out of outside reach. It must be cemented and provided with a fireproof and key-closing door. When the block valve is driven by an electric engine, this engine and the control electric devices must be ADF safety system complying. When the installation inside the fence is electrically lit, the electrical light generator must be waterproof. TITLE IX Safety endangering Operation Troubles Article 52: Any incident or any circumstance likely to endanger safety must be immediately reported to the Ministry of Energy and Mines. In the event of pipeline accident or incident, the Ministry of Energy and Mines can order, after fixing its value, a curb in the effective in-service pressure of the pipeline or pipeline section, when manufacturing and operation conditions expose them to hazards similar to those which caused this accident or incident.

20

In the event of serious accident, notably explosion or asphyxiation or other accidents causing casualties or injuries likely to lead to death, the PTC must immediately inform the Ministry of Energy and Mines which opens an investigation the results of which should be submitted to the Wali and the Attorney General in case of death or serious injuries. The PTC has also to adhere to instructions of ORSEC/Hydrocarbons plans, developed by the pipeline crossed Wilayate. Article 53: The provisions of the regulation in hand are applicable to liquid hydrocarbons transport works and are effective as from their issue date.

21