Lessons
 Learned
NaturalGas
EPA POLLUTION PREVENTER

                                     0
From  Natural  Gas STAR  Partners
USING HOT TAPS FOR IN SERVICE PIPELINE CONNECTIONS

Executive Summary
Natural gas transmission and distribution companies need to make new connections to pipelines many times a
year to expand or modify their existing system. Historically, this has necessitated shutting down a portion of the
system and purging the gas to the atmosphere to ensure a safe connection. This procedure, referred to as a
shutdown interconnect, results in methane emissions, loss of product and sales, occasionally customer incon-
venience, and costs associated with evacuating the existing piping system.

Hot tapping is an alternative procedure that makes a new pipeline connection while the pipeline remains in
service, flowing natural gas under pressure. The hot tap procedure involves attaching a branch connection and
valve on the outside of an operating pipeline, and then cutting out the pipe-line wall within the branch and
removing the wall section through the valve. Hot tapping avoids product loss, methane emissions, and disruption
of service to customers.

While hot tapping is not a new practice, recent design improvements have reduced the complications and uncer-
tainty operators might have experienced in the past. Several Natural Gas STAR transmission and distribution
partners report using hot tap procedures routinely—small jobs are performed almost daily while larger taps
(greater than 12 inches) are made two or three times per year.

By performing hot taps, Natural Gas Star partners have  achieved methane emissions reductions and increased
revenues. Gas savings are generally sufficient to justify making all new connections to operating lines by hot
tapping. The payback period for utilizing hot tapping is often immediate.
Method for
Reducing Gas
Loss
Hot Tap
Connection 1
Volume of NG
Savings
(Mcf/yr)
24,400

Value of NG
Savings
($/yr)
73,3202

Other
Savings
($)
6,8403

Capital
Cost
($)
36,200

Other
Cost4
($/yr)
43,000

Payback
(Months)

12

  1 Annual savings and costs are based on an average 320 hot taps (of various sizes) per year.
  2 Assumes a natural gas price of $3.00/Mcf.
  3 Other savings shown are for inert gas.
  4 Other cost includes the O&M and contract services cost.
This is one of a series of Lessons Learned Summaries developed by EPA in cooperation with the natural gas industry on superior
applications of Natural Gas STAR Program Best Management Practices (BMPs) and Partner Reported Opportunities (PROs).

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In natural gas transmission and distribution systems, it is frequently neces-
sary to relocate or expand existing pipelines, install new valves or repair old
ones, install new laterals, perform maintenance, or access lines during emer-
gencies. Historically, it has been common  practice to shut down the portion
of the system during the alteration, vent the gas within the isolated segment,
and purge the pipeline with inert gas to ensure a safe connection.

The procedure for performing the shutdown  interconnect differs slightly de-
pending on system pressure. In high-pressure systems, the surrounding
valves are closed to isolate the pipeline segment and additional stoppels
(inserted plugs) are placed next to the valves to prevent natural gas leakage
and improve the safety conditions at the interconnection site. In a low-pres-
sure system, the length of pipeline that is shutdown is typically much shorter.
Rather than shutting the surrounding valves,  stoppels are used to isolate the
portion of the pipeline directly around the area of the tap. In both cases, the
gas in the isolated pipeline segment is vented and the line is purged.

The impacts associated with performing a shutdown interconnect are both
economic and environmental. Gas vented from the pipeline segment repre-
sents a loss of product and an increase in methane emissions. In addition,
removing a pipeline segment from service can occasionally cause gas serv-
ice interruptions to customers. For example,  a shutdown connection on a
steel line can  require one to three or more days of pipeline outage and pos-
sible interruption of natural gas shipments in  addition to the release of
methane to the atmosphere.

Hot tapping is an alternative technique that allows the connection to be
made without shutting down the system and venting gas to the atmosphere.
Hot tapping is also referred to as line tapping, pressure tapping, pressure
cutting, and side cutting. The process involves attaching branch connections
and cutting holes into the operating pipeline  without interruption of gas flow,
and with no release or loss of product. Hot taps permit new tie-ins to exist-
ing systems, the insertion of devices into the flow stream, permanent or
temporary bypasses, and is the preparatory  stage for line plugging with
inflatable, temporary balloon plugs (stoppels).

Hot tapping equipment is available for almost any pipeline size, pipe mate-
rial, and pressure rating found in transmission and distribution systems. The
primary equipment for a typical hot tap application includes a drilling ma-
chine, a branch fitting, and a valve. Hot tapping equipment is described be-
low and shown in Exhibit 1.

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*  Drilling machine. The drilling machine generally consists of a mechani-
    cally driven telescoping boring bar that controls a cutting tool. The cut-
    ting tool is used to bore a pilot hole into the pipeline wall in order to cen-
    ter a hole saw that cuts out the "coupon," or curved section of pipeline
    wall.
*  Fitting. Connection to the existing pipe is made within a fitting, which
    can be a simple welded nipple for small (e.g., one inch) connection to a
    larger pipeline, or a full-encirclement split-sleeve tee for extra  support
    when the branch is the same size as the parent pipeline. The tee wraps
    completely around the pipeline, and when welded,  provides mechanical
    reinforcement of the branch and carrier pipe.
*  Valve. The valve on a hot tap connection can be either a block valve or
    a control valve for the new connection, and must allow the coupon (sec-
    tion of pipeline wall cut out by the drilling machine)  to be removed after
    the cutting operation.  Suitable valves include a ball or gate valve, but not
    a plug or butterfly valve.
        Exhibit 1: Schematic of Hot Tapping Machine with Profile
                                      Tapping Machine
                                      Seal
                                       alve
                                      Boring Bar
                                      Cutler
                                      Pilot  Drill
                                                        ouport
                                                 Full-encirclement
                                                 fitting
          IPSCO

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Exhibit 2 provides a general schematic of a hot tapping procedure. The
basic steps to perform a hot tap are:

    1.   Connect the fitting on the existing pipeline by welding (steel), bolting
        (cast iron), or bonding (plastic) and install the valve.
    2.   Install the hot tap machine through the permanent valve.
    3.   Perform the hot tap by cutting the coupon from the pipeline through
        the open valve. A special device retains the "coupon" for removal af-
        ter the hot tap operation. Withdraw the coupon through the valve
        and close the valve.
    4.   Remove the tapping machine and add the branch pipeline. Purge
        oxygen, open the valve, and the new connection  is put into service.
             Exhibit 2: Schematic of Hot Tapping Procedure
  Soa&t  T.D
Hot taps can be vertical, horizontal, or at any angle around the pipe as long
as there is sufficient room to install the valve, fitting, and tapping machine.
Current technology allows for taps to be made on all types of pipelines, at all
pressures, diameters, and compositions, even older pipes merging with
new. New, lightweight tapping machines are also available that allow a hot
tap to be performed by a single operator, without additional blocking or
bracing.

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                             Safety manuals and procedural outlines are available from the American Pe-
                             troleum Institute (API), American Society of Mechanical Engineers (ASME),
                             and other organizations for welding on in-service pipelines for all sizes, flow
                             rates, and locations. These manuals provide information on what to consider
                             during welding, including  burn-through prevention, flow in lines, metal thick-
                             ness, fittings, post weld heat treatment, metal temperature, hot tap connec-
                             tion and welding design, and piping and equipment contents.

                             Vendor manuals and equipment catalogues are also good sources for deter-
                             mining which size and type of equipment is most appropriate. Several ven-
                             dors have published comprehensive outlines and guides for performing hot
                             tap procedures, including information on tapping on various materials, job-
                             site evaluation and preparation, selection and installation of fittings and other
                             equipment, and safety precautions. Most importantly, because this is a haz-
                             ardous procedure, each potential hot tap must be evaluated on a case-by-
                             case basis and a detailed, written procedure should be prepared or
                             reviewed before starting each job to ensure that all steps are taken properly
                             and safely.

                             Key economic and environmental benefits of employing hot tapping proce-
                             dures instead of shutdown connections include:
Environmental
                             *  Continuous system operation—shutdown and service interruptions are
                                avoided.
                             *  No gas released to the atmosphere.
                             *  Avoided cutting, realignment and re-welding of pipeline sections
                             *  Reduction of costs associated with planning and coordinator
                                ings, schedules, paperwork, lost production, and direct m?
                             *  Increased worker safety.
                             *  Elimination of obligations to notify customers of gas c
                             By ensuring that best practices are followed when pert'
                             time required for the procedure,  as well as the potent'
                             duced.

                             Operators can assess the economics of performing a hot tap as an alterna-
                             tive to a shutdown connection by following the five steps below:

                             Step 1: Determine physical conditions of the existing line. In preparation
                             for a hot tap project,  operators will need to determine the maximum operat-
                             ing pressure (during the hot tap), type of pipe material (steel, cast iron, plas-
                             tic), and condition of the parent pipeline (internal/external corrosion, wall
                             thickness) to assure a safe project.  A hot tap connection can be made on a
                             pipeline only where the parent pipe material is in good condition. Other
                             conditions to evaluate include the location of nearby valves for emergency

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Five Steps for Assessing Hot Tap
Economics:

I.   Determine physical conditions of existing
    line.
2.   Calculate cost of performing a shutdown
    interconnect.
3.   Calculate the cost of a hot tap procedure.
4.   Evaluate the gas savings benefits of hot
    tapping.
5.   Compare the options and determine the
    economics of hot tapping.
isolation in the event of an accident, the desired tap diameter, working space
around the connection, location of other pipeline welds, and imperfections or
obstructions. Operators should also determine if the line is "looped," as
many gas transmission companies avoid operational disruptions by shifting
the load to a parallel line. It is advisable to develop and follow a written plan
to assure full and proper evaluation of a future connection.

Step 2: Calculate cost of performing a shutdown interconnect. The cost
of an actual project would include direct costs such as material and equip-
ment, welding requirements, quality control, blowdown and purge costs,
labor, and scheduling expenses. Additional indirect  expenses or "hidden"
costs might include the cost of shut-off valves, advertising if service is to be
interrupted,  relighting of customer services, and excavating for stopples and
purge connections. Operators  would be advised to reference historical data
to determine these costs.

For the purposes of this scoping analysis, material and labor costs for cut-
ting out the line section and welding in a tee connection in the shutdown
method are assumed to be comparable to the cost of welding on the fitting
and performing the hot tap when the branch connection is the same size as
the pipeline. However, the costs of the gas lost through venting and inert
gas purging are unique to the shutdown interconnect.

The formulas used to determine the cost of a shutdown interconnect are
shown in Exhibit 3. For these calculations, low  pressure is defined as less
than 2 psig.

For comparative purposes, calculating the cost of a shutdown interconnect
should take into consideration  a multiple-project scenario. This multiple-proj-
ect perspective allows for a more complete comparative cost analysis given
the up-front capital costs of owning and operating a hot tap machine and
the need to perform several interconnections throughout a given year. Exhibit
4 illustrates how the cost calculations in Exhibit 3 can be applied  in a multi-
ple connection scenario. The hypothetical situation  presented includes sev-
eral projects on pipelines of various sizes and pressures. Cost calculations,
however, are only provided for  the 4-inch pipeline scenario and  only cover
direct costs.

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Exhibit 3: Calculating the Cost of Shutdown Interconnect

Given:
D    = diameter of pipeline (inches)
T    = taphole diameter (inches) - for low pressure shutdown with tapholes for stoppers
L    = length of pipeline between tapholes (feet) - for high pressure shutdown
P    = line pressure (psia for low pressure, psig for high pressure)
Ppoas  = current purge gas market price ($/Mcf) - assumed $4/Mcf
Po   = current gas market price ($/Mcf) - assumed $3/Mcf
Ce   = cost of extra excavation, use company records ($)
CP   = cost of purge connections and excavation
Cs   = cost of hidden shutdown expenditures, see Appendix ($)
Cf   = cost of fittings, see Appendix ($)
 Time Taphole is open = from prior experience (minutes)
Calculate Direct  Costs:
                                      3.14*D2  fft"^   D"
          Calculate A =area of pipeline (fT ) =
                                       4*144 \Jn J  183

                                           A *L fMcf*1
     2.    Calculate  Vp = volume of pipeline (Mcf)=
     3.   Calculate V^  = volume of purge gas =VP *2.2 (shutdown + restore+20% wasted)
     4.   Calculate CK;B  = cost of nitrogen purge gas = Vp^  *Ppga,
                                                                D2 *p *| —!^|* 0.372
                                                                        U 000 >
     5.   Calculate Vg = volume of gas lost in high pressure systems: Vg (Mcf) =	
                                                                         1,000
                 V  = volume of gas lost in low pressure systems: V (Mcf)
                    T2 *P *No. of Tapholes *Time taphole is open I hr

     6.   Calculate  C g = cost of gas lost ($) = Vg *Pg

Calculate Indirect Costs:
     1. Calculate Ce = cost of extra excavation for tie-in ($)
     2. Calculate Cp = cost of purge connections ($)
     3. Calculate Cs = cost of hidden shutdown expenditures ($)
     4. Calculate Cf = cost of fittings ($)
     5. Calculate C| = indirect costs ($) = Ce + Cp + Cs + C,
Calculate Total Costs:
     Calculate Ctota| = total cost ($) = Cg + Cpgas +  Cj

Source: Pipeline Rules of Thumb, p. 270 and p. 278

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Exhibit 4: Hypothetical Scenario and Example Calculation of Lost Gas and
Purge Gas Costs for a Shutdown Interconnect

Given:
A pipeline company requires numerous shutdown or hot tap connections as follows:
    Pipeline Diameters, Inches        4       8        10       18
    Pipeline Pressures, psig          350     100      1,000    200
    Pipeline Lengths1,  miles2          2132
    Annual Taps3, number            250     30       25       15
(1) Calculate: V0 = Volume of Natural Gas Lost
                            *0.372
Vg(Mcf)
                      1,000
                        1 ,000
                               *0.372
                       1,000
Vg         -22 Mcf

(2) Calculate: Vpgas = Volume of Purge Gas "
VDaas(Mcf) =
              1,000
W           I     133
vpgas
Vpgas       = 2 Mcf
(3) Calculate: Value of Gas Lost by Shutdown Interconnects (Including Purge Gas)
         = r + c   =v *p +v   *p
Cost       S+Sgas   vg  ^g + vpgas  ^pgas
         = ( 22 Mcf *S3/Mcf )  +( 2 Mcf *S4/Mcf )
Cost = $74 for each of the 4 inch pipeline shutdown interconnects
1 Isolation length between block valves or stoppers
2 Formula requires length in feet. 1 mile = 5,280 feet.
3 Scenario is based on partner and vendor information
4 Inert gas assumed to be nitrogen

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Again, individual operators will need to reference company records to deter-
mine the exact procedures and factors to use when performing shutdown
interconnects. The procedures described above are general guidelines for
preliminary economic assessment and can differ from company to company.
Additional  factors that are company specific include gas leakage past the
pipeline valves on both ends of the shutdown, number of stoppers, tap
holes for venting and purging, and type of purge gas. Leakage is particularly
important as large pipeline block valves can leak significant volumes of gas
because they are used infrequently and the valve seat can accumulate
debris that inhibits a tight seal. The volume of leakage is highly variable,
dependent on valve type, age, pipeline pressure and service (dry gas causes
much less corrosion and accumulation of debris than wet gas). If a partner's
individual evaluation following this lesson learned results in marginal eco-
nomic justification, then company experience on pipeline valve leakage
should be  factored in to improve the economics.

Step 3: Calculate the cost of a hot tap procedure. When comparing the
up-front costs of hot tapping  with shutdown interconnects the only signifi-
cant difference is the cost of the  hot tap equipment. The tee fitting or full
encirclement sleeve, and the valve have nearly the same cost for either
method when the branch is essentially the same size as the pipeline (infor-
mation on  fitting types and costs is shown in the Appendix). The cost of
welding a full encirclement sleeve is nearly the same as the cost of welding a
tee fitting in a line. Labor cost for cold cutting the pipeline and hot tap cut-
ting out a coupon are sufficiently close for this type of feasibility evaluation.
Maintenance costs apply only to hot tap equipment, such as drill  sharpening
and other  equipment care and replacement.

Tapping machines come in several sizes, and a single machine can  perform
hot taps from 3 to 12 inches. Less expensive machines can be purchased
to perform small (e.g., 1 to 3  inch) taps. In general, capital costs for purchas-
ing the hot tap machines typically used by gas companies for the most
common sized connections range from $13,200 to $23,000.

Equipment cost is normally a one-time capital expenditure and can  be de-
preciated over the life of the equipment, typically 15 to 20 years. Each com-
pany, however, should calculate the depreciation in the  same manner used
for other equipment  purchases (e.g., amortized, over a fixed period  of time).
This should be considered in  conjunction with how often the machine will be
used in the future. To make this determination, operators should look at

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                                          company records to determine the number of times similar connections
                                          have been performed.

                                          Typically, a company that performs several hot taps a year will find it eco-
                                          nomical to own the equipment, especially in sizes up to 12 inches, and to
                                          maintain trained personnel to perform the service. These jobs are usually
                                          simpler and require less specialized training than larger hot tap jobs. For
                                          larger and less frequent hot taps a company might consider it more cost
                                          effective to hire a contractor who will supply the equipment and trained
                                          personnel. Most hot tap vendors will supply all necessary tapping equip-
                                          ment, including the drilling machine, fittings, valves, cutters, and repair
                                          services. The majority of vendors also offer contract services for larger or
                                          infrequent jobs, or will rent out the tapping equipment. Supplying support
                                          services, such as excavation, welding, and cranes, can reduce the costs of
                                          using an outside contractor.

                                          Other factors, such as the line material and thickness,  system pressure, and
                                          temperature, should also be considered when determining the alterna-tives
                                          of purchasing hot tapping equipment or hiring contractors. A company
                                          should evaluate how often the tapping equipment would be used and if they
                                          would realize savings by owning and maintaining the equipment and training
                                          operators.

                                          Exhibit 5 presents ranges of hot tapping costs for both equipment purchase
                                          and contracted services. The cost  ranges shown include all materials;
                                          addi-tional expenses will result from labor and maintenance expenditures,
                                          as dis-cussed above. Vendors state that the operations and maintenance
                                          (O&M) costs can vary greatly, depending on the number of taps performed
                                          and equipment and procedural care.
10

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 Connection
 Size
     Exhibit 5: Hot Tap Expenses
     Capital Cost ($)
                  Machine
            Material
  Contracting
 Service Cost
     ($)
Equipment
O&M Cost
  ($/yr)
 Small Taps
13,200-
 23,000
                                                           500 - 5,000
 Large Taps
100,000-
200,0002
                               2,000-9,1202
1,000-4,000
 1 Hot tap machines can last from 5 to 40 years. A company can perform as many as 400
  small taps per year.
 2 Most companies will find it more economical to contract out large hot tapping jobs, and
  would not therefore incur these costs.
 Note: Cost information provided by Hot Tap manufacturers and contractors. Prices are only
 provided for the most economic options.
Exhibit 6 shows the equipment, O&M, and contractor services cost to per-
form the 320 taps per year in the hypothetical scenario first described in
Exhibit 4. The assumption is made that the 4", 8", and 10" taps (a total of
305 taps) would be performed by the company. Because few taps equal to
or larger than  18  inches are performed each year, these taps (a total of 15
taps) would be contracted to vendors. The equipment cost includes the
purchase cost of two small (<12") tap machines. For the purpose of this
lessons learned, the average value of the purchase, O&M, and contracting
service costs listed in Exhibit 5 are used to complete the cost analysis for
the hypothetical scenario. Based  on these assumptions the total equipment
cost is calculated at  $36,200, the O&M cost at $5,500 and the contract
services cost at $37,500.
                                                                         11

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                                              Exhibit 6: Estimated Annual Hot Tap Costs for the Hypothetical Scenario
                                              Given:
                                                  Equipment Cost per machine = $18,100 1
                                                  Operations and Maintenance (O&M) Cost per Machine = $2,750 1
                                                  Contract Services cost per tap = $2,500 1
                                                  Number of hot tap machines = 2
                                                  Number of contracted taps = 15 (all taps 12 inches and larger)
                                              Calculate:
                                                  Total Equipment Cost = $18,100 * 2 = $36,200
                                                  Total O&M Cost = $2,750 * 2 = $5,500
                                                  Contract Services Cost = $2,500 * 15 = $37,500
                                               Average costs from ranges in Exhibit 5
                                             Step 4: Evaluate the gas savings benefits of hot tapping. Exhibit 7 pres-
                                             ents the natural gas and purge gas savings associated with hot tapping on
                                             small and large diameter high-pressure pipelines in the hypothetical scenario
                                             of 320 taps per year. The values are calculated using the equations in exhibit
                                             3, multiplied by the number of annual connections. Gas losses associated
                                             with shutdown interconnects are the primary savings when these connec-
                                             tions are made by hot tapping.
Exhibit 7: Estimated Annual Gas Savings for the Hypothetical Scenario
Tap Scenario 1
Pipelines
4" pipeline
350 psig, 2 mile line
8" pipelinelOO psig, 1
mile line
10" pipeline1,000
psig, 3 mile line
18" pipeline200 psig,
2 mile line
Total Annual
Annual
Taps
Number
250
30
25
15
320
Natural Gas Savings
Per Tap Mcf
22
13
589
255

Annual Mcf
5,500
390
14,725
3,825
24,440
Purge Gas Savings 2
Per Tap Mcf
2
4
19
41

Annual Mcf
500
120
475
615
1,710
Total Gas
Savings3
$
18,500
1,650
46,075
13,935
80,160
1 The sizes and number of taps from scenario given in Exhibit 4.
2 Example for 4-inch pipe interconnect shown in Exhibit 4.
3 Natural gas valued as $3 per Mcf, inert gas (nitrogen) valued at $4 per Mcf.
12

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Step 5: Compare the options and determine the economics of hot tap-
ping. The economic analysis shown in Exhibit 8 compares the significant
cost and  benefit differences  between hot tapping and shutdown intercon-
nections for the hypothetical scenario of 320 taps per year. The significant
costs are the purchase, operation and maintenance of hot tapping equip-
ment and/or contracting for  hot tapping services. In this scenario, both costs
are included: the purchase of two hot tapping machines for $36,200 for the
smaller sizes and contracting the 15 large taps at $37,500 per year. The
purchased hot tap machines are operated and maintained at $5,500 per
year. All these costs are calculated in Exhibit 6. Many expenses, including
the cost of fittings, valves and basic labor, are assumed to be similar in both
hot tap and shutdown procedures, and therefore can be excluded in the
comparative analysis. A more complete analysis can be done by evaluating
and including the company specific "hidden" costs per Exhibit 3.

The significant  benefit differences are the reduction in natural  gas loss by
eliminating venting and the inert purge gas used in the shutdown intercon-
nect procedure. As summarized in Exhibit 7, annual natural gas savings total
24,440 Mcf for the hypothetical hot tapping scenario, worth $73,320 per
year at $3 per Mcf gas price. The annual inert gas savings of 1,710 Mcf  is
worth $6,840 per year at $4 per Mcf of nitrogen, for a total annual benefit of
$80,160. Additional benefits from avoiding gas leakage through pipeline
block valves during shutdown interconnect would  further improve the hot
tapping economics.
Exhibit 8: Economic Analysis of Hot Tap Versus Shutdown

Capital Cost, $
Contract Service Cost, $
O&M Cost. $
Total Cost. $
Natural Gas Savings. ($)
Inert Gas Savings, ($)
Net Benefit $
Payback (months)
IRR
NPV1
YearO
(36,200)
0
0
(36,200)


(36,200)
YeaM
0
(37,500)
(5,500)
(43,000)
73,320
6,840
37,160
Year 2
0
(37,500)
(5,500)
(43,000)
73,320
6,840
37,160
Year 3
0
(37,500)
(5,500)
(43,000)
73,320
6,840
37,160
Year 4
0
(37,500)
(5,500)
(43,000)
73,320
6,840
37,160



Year5
0
(37,500)
(5,500)
(43,000)
73,320
6,840
37,160
12
113%
$104,665
1 Net Present Value (NPV) based on 10% discount rate for 5 years.
                                                                     13

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                                            In conclusion, hot tapping has been found to be more cost effective than
                                            shutdown interconnects.  Even when the system must be taken out of serv-
                                            ice, hot tapping presents opportunities for both time and cost savings. While
                                            hot tapping is a practice that has historically been performed by companies
                                            for reasons other than the gas savings, consideration of the methane reduc-
                                            tion benefits can often serve to justify hot tapping over the shutdown inter-
                                            connect procedure in a variety of circumstances.
                                               One Vendor's Experience

                                               A vendor reports that, for a gas transmission client, one day of gas service in a
                                               36" natural gas pipeline operating at 1,000 psig is worth $365,000 in gross rev-
                                               enue. It would take approximately 4 days to perform a shut down connection at a
                                               cost of $1.5 million, not including the cost of venting the pipeline contents in
                                               order to perform the tie-in with shutdown.  A hot tap connection would eliminate
                                               this loss of revenue by enabling uninterrupted service.
                                            Pipelines typically undergo several transformations each year. Performing hot
                                            taps to make these connections and installations can reduce methane emis-
                                            sions from pipelines and increase savings and efficiency. The following are
                                            several lessons learned offered by partners and hot tap vendors:

                                            *   Hot tapping has been performed by transmission and distribution com-
                                                panies for decades. By evaluating the gas savings associated with this
                                                practice, hot tapping can be used in many situations where it would not
                                                ordinarily have  been used.
                                            *   The site for the branch weld must be free of general corrosion, stress
                                                corrosion cracking, and laminations.
                                            *   Hot tap should not be performed immediately upstream of rotating
                                                equipment or automatic control valves, unless such equipment is pro-
                                                tected from the cuttings by filters or traps.
                                            *   For tapping on steel pipes, fittings generally consist of a welded branch
                                                connection. However, when tapping into cast iron, asbestos cement, or
                                                concrete, the fitting cannot be welded onto the existing header. Alterna-
                                                tive fitting attachment techniques, such as a split cast iron compression
                                                sleeve or a  mechanical joint saddle, must be employed.
                                            *   For plastic systems, the operator should ensure that the hot tapping fit-
                                                tings are compatible with the type of plastic pipe in the system and ap-
                                                propriate joining methods are used. Vendors can supply suitable fittings
                                                and tools for almost every kind of plastic system.
                                            *   If hot tapping has not been  performed in the past, a hot tapping proce-
                                                dure should be developed and personnel trained. Be sure to include in-
14

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structions concerning possible burn through or hydrogen cracking dur-
ing welding.
All equipment must meet minimum industry and federal standards for
pressure, temperature, and operating requirements.
If conditions of temperature, pressure, pipe composition, or tap diameter
are encountered that are unusual for your system, be sure to consult the
manufacturer of the tapping equipment or fittings.
Industry and federal codes and standards should be consulted for more
specific specifications (e.g., ASME B31.8, API 2201, API 1104, API
D12750, 49CFR192).
Record emissions reductions associated with using hot taps and submit
them with your Natural Gas STAR Annual Report.
                                                                15

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                                         American Petroleum Institute. Procedures for Welding or Hot Tapping on
                                         Equipment in Service. API Recommended Practice 2201, Third and Fourth
                                         Editions, October 1985 and September 1995.
                                         American Petroleum Institute. Welding of Pipelines and Related Facilities,
                                         Publication No. 1104, 19th Edition, September 1999.
                                         American Society of Mechanical Engineers (ASME). ASME Code for Pressure
                                         Piping, B3I, ASME B31.8-1995 Edition.
                                         Bruce, William A. Edison Welding Institute. Personal contact.
                                         Burns, David. TransCanada Hot Taps. Personal contact.
                                         Chaput, James. Michigan Gas. Personal contact.
                                         Chila, Vern. International Piping Services Company. Personal contact.
                                         Davaney, Tom. Con Edison. Personal contact.
                                         Doig, Deanna. TransCanada Alberta System, TransCanada Pipelines.
                                         Personal contact.
                                         Hranicka, Anthony. Con Edison. Personal contact.
                                         Hydra-Stop, Inc.  A Pressure Installation  Primer: Basic Information and
                                         Procedures for Line Tapping and Linestopping.
                                         LaShoto, Paul. Bay State Gas. Personal contact.
                                         McAllister, E.W. Editor. Pipeline Rules of Thumb Handbook. Fourth Edition,
                                         Gulf Publishing Company.
                                         McElligott, John A., John Delanty, and Burke Delanty, "Use of Hot Taps for
                                         Gas Pipelines Can be Expanded," Oil and Gas Journal, 11/30/98.
                                         McMicken, Mike  and Brian Boucher. Team Industrial Services,  Inc. Personal
                                         contact.
                                         Petolick, Don and Gary Vanderhye. Hydra-Stop, Inc. Personal  contact.
                                         Rodgers, Erick. Topaz Inc. Personal contact.
                                         Smith, Sharlye. Mueller Co. Personal contact.
                                         Vandervort, Dal and T.D. Williamson. Inc. Personal contact.
                                         Venugopal, Shrikanth. TransCanada Transmission. Personal contact.
                                         Tingley, Kevin. EPA Natural Gas STAR Program. Personal contact.
                                         U.S. Code of Federal Regulations. Title 49, Part 192 (49 CFR 192), Subpart
                                         D, "Transportation of Natural and Other  Gas by Pipeline: Minimum Federal
                                         Safety Standards; Design of Pipeline Components".
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Valves. Valves used in hot tapping are typically full opening ball or wedge
gate valves. Pipe suppliers can usually supply prices for valves and fittings, if
provided with the scenario information including pipe size, outlet size, and
line content, pressure, and material.

Tees/Fittings. There are several different types of mechanical and welded
fittings applicable to hot tapping including weldolet, threadolet, scarfed nip-
ple, tapping tee, or full encirclement saddle. The most common tapping fit-
ting is a split cast iron sleeve. Fittings are typically priced by size, flange
(ANSI/pressure) rating, and any special characteristics. Typical vendor fitting
costs are presented below.
TD Williamson - Full Split Tee Costs ($)
Size
(pipeline x outlet)
16"x16"
18"x18"
20"x20"
24"x24"
30"x30"
40"x16"
60"x16"
Price estimates
Fittings are also
1"x1"to96"x

$2,000
$3,000
$5,000
$6,000
$9,000
$2,500
$2,500
are for a 300# rating.
available for 1 50#, 400#, 600#, 900#, and 1 ,500# flange ratings and sizes
96".
Topaz - Tapping Tee Costs ($)
Size (pipeline x outlet)
2"x2"
4"x4"
12"x12"
20"x20"
12"x4"
20"x8"
150# Flange Rating
$386
$407
$1,394
$3,645
$1,248
$1,428
300# Flange Rating
$399
$428
$1,484
$3,857
$1,251
$1,468
600# Flange Rating
$443
$481
$1,624
$4,290
$1,347
$1,521
Fittings are available for other sizes.
                                                                         17

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Topaz - Full Encirclement Saddle Costs ($)
Size (pipeline x outlet)
2"x2"
4"x4"
12"x12"
20"x20"
12"x4"
20"x8"
40"x16"
Parti
$227
$227
$645
N/A
$594
$1,303
N/A
Part 2
$189
$189
$539
$1,306
$495
$1,076
$3,493
Fittings are available for other sizes.
                                          One of the possible hidden costs of a shutdown connection, if gas cannot
                                          be supplied from alternate sources, can be the cost of relighting customers.
                                          This process would require two visits, one to shut down and the second to
                                          turn on and relight. Typically, a visit to a residential customer would take 15
                                          to 30 minutes, and a visit to a commercial or industrial customer would take
                                          approximately 1  hour. According to the Bureau of Labor Statistics, an
                                          employee would be paid approximately $9.75 per hour for this work.

                                          Cost of Relighting = [(No. of residential customers) * (0.38 hrs)]
                                          + [(No. of commercial/industrial customers) * (1 hr)]  * $9.75/hr

                                          It might not be possible to perform a shutdown connection during optimal
                                          hours. Scheduling and additional planning might have to  be completed to
                                          arrange the construction and additional excavation  necessary to shut
                                          down the line, pay employees overtime, and advertise the shutdown to
                                          customers. These costs are variable and will depend on the company and
                                          internal fac-tors.

                                          Other additional costs exist, such as scheduling,  labor, overtime, and adver-
                                          tising,  but are unique to each company,  and beyond the  scope of this study.
                                          These costs can be estimated based on past shutdown  experience. An
                                          operator should examine past records to determine what, if any, costs are
                                          being avoided by performing a hot tap versus a shutdown connection.
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&EPA
    United States
    Environmental Protection Agency
    Air and Radiation (6202J)
    1200 Pennsylvania Ave., NW
    Washington, DC 20460
    EPA430-B-03-01
    December 2003

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