API Standards and the StandardsDevelopment ProcessRoland GoodmanManager, Upstream StandardsAmerican Petroleum Institute

API Standards and the StandardsDevelopment ProcessDiscussion will cover: API history and organizational structure Standards development process Standards committee structure and organization Format and style guide Global standards update

API History 1919: API founded as non-profit national trade association,New York City Taxes Statistics Standards (equipment and operations) 1923: Standards Department formed; first standardpublished in 1924 (drill pipe threads) 1980s: API relocates to Washington, DC 2007 – 2010: Opened three international offices in Beijing,Dubai, and Singapore

API Mission Influence public policy in support of strong US oiland natural gas industry Engage in legislative and regulatory advocacy Provide a forum to develop consensus industrypolicies Work collaboratively with other associations Develop industry standards that ensure reliabilityaddress safety, and codify best work practices

Other API Roles Gather statistics Conduct research Inform government and public Implement and manage industrycertification programs Provide education and training

API Structure Over 500 member companies involved in allaspects of the oil and natural gas industry Over 700 committees and task forces coveringvarious advocacy and technical issues Staff of 240 led by board of directors who are theCEO’s of API member companies

API Standards Program All industry segments active in standardization: Exploration and Production Refining Petroleum measurement Marketing Pipeline Transportation

API Standards API now publishes and maintains 600 standardscovering all aspects of the oil and natural gasindustry Foundation of self-supporting industry programs Basis for company’s worldwide operations Developed by industry volunteers

Standards Development Process API is accredited by the American National Standards Institute(ANSI)–Openness, balance, consensus, due process–Periodic program audits (conducted by ANSI) Transparent process Any interested party can participate on committees andcomment on API standards All comments must be considered One vote per company

Standards Development Process Developed by consensus (does not meanunanimity) Committee balance between users, manufacturersand contractors/consultants Standards developed using ANSI-approved APIProcedures for Standards Development API corporate membership is not a requirement forparticipation on API standards committees

API Standards CommitteesCommittee onStandardization ofOilfield Equipment& Materials Committee onPetroleumMeasurementMarketing/AviationPipeline TransportationSafety & Fire ProtectionCommittee onRefinery EquipmentDrilling andProductionOperationsSubcommittee

API Document Designations Specifications Standards Recommended Practices Bulletins and Technical Reports

API Document Designations Specifications - Documents that are written insuch as way as to facilitate communicationsbetween purchasers, manufacturers, and/orservice suppliers Standards - Documents that combine elementsof both specifications and recommendedpractices

API Document Designations Recommended Practices - Documents thatcommunicate recognized industry practices;RPs may include both mandatory and nonmandatory requirements Bulletins & Technical Reports - Documents thatconvey technical information on a specificsubject or topic and are generally issued on aone time-basis

Expression of Provisions in aStandard shall – indicates that a provision is mandatory should – indicates that a provision is notmandatory, but recommended as good practice may – signifies permission and indicates aprovision is optional can – used for statements of possibility orcapability

Common Mistakes Scope contains information that is unrelated to whatthe standard covers and/or contains requirements Dated vs. undated references to other standards Definitions contain requirements or are too lengthy Defined terms or abbreviations are not used in thedocument Annexes are in the wrong order Hanging paragraphs

Scope Appears at the beginning of each document anddefine without ambiguity the subject of thedocument and the aspects covered Indicates the limits of applicability of thedocument and cannot contain “shall” or“should” statements The scope should be brief so that it can be usedas a summary for and the API PublicationsCatalog

References to other Documents Undated references may be made to a completedocument or a part thereof Dated references are references to a specificedition, indicated by the year of publication References to specific sections or subsections,tables, and figures of another document shouldbe dated

Definitions Only terms used in the document can be defined Cannot contain requirements Should be a brief, self-contained description ofthe term in question (one sentence) Any term that is not self-explanatory orcommonly known and which can be differentlyinterpreted in different contexts should bedefined

Annexes Must be referenced at least once in the text Must appear in the order in which they are citedin the text Their presence is optional Annexes must be identified as “informative”(FYI) or “normative” (required)

Annexes Normative annexes give provisions additional tothose in the body of the document Informative annexes give additional informationintended to assist the understanding or use of thedocument Informative annexes may contain optionalrequirements An annex’s normative/informative status must bemade clear by the way in which it is referred to inthe text

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Global Standards Update API has ceased its interactions with ISO due tosanctions concerns Participation/information sharing sublicensing API’s Executive Committee (subgroup of theBoard of Directors) requested Global IndustryServices Committee develop recommendations

Global Standards Update Executive Committee endorsed five guiding principlesat June 2012 meeting: Need for single set of standards Global acceptance and wide use Regulatory acceptance Build on existing API standards infrastructure Legal compliance Requested API work with OGP on long-term plan forindustry standardization (meeting held on August 1st)

Global Standards Update API/OGP Standards Task Force established Purpose: determine a process for the continueddevelopment of globally accepted internationalstandards for the oil and gas industry, given thecurrent US and EU trade sanctions Deliverables: recommend a process for globalstandards development with options, includingroles of API/OGP/others, resourcing requirements,and a recommended timeline and transitionprocess to implement

Global Standards Update Task Force has ten representatives (five fromeach organization) from BP, Cameron, Chevron,ConocoPhillips, ExxonMobil, Halliburton, Pemex,Shell, Qatar Petroleum, and Total Goal is to provide recommendations by the endof the 1st quarter 2013 Four face-to-face meetings, bi-weekly conferencecalls

Global Standards Update API, OGP, and ISO/TC 67 Chair presented atSeptember 26th IRF meeting – focus was oncurrent status and API/OGP Standards TaskForce August OFAC response to ANSI petition –response limited to existing law API Law Committee approved filing ofsupplemental request on October 4th