Engineering StandardsStandard

0172Page

ENRON 1 of 2GAS PIPELINE DOCUMENTATION OF MATERIALS Issue Date

GROUP 06/86Rev. No. 5Date 04/95

1. SCOPE

This standard states the Company policy regarding the documentation requirements for pipe, valves, flanges, fittings, pressure containing components and major electrical and mechanical equipment items.

2. CODES AND STANDARDS

49 CFR Part 192 requires that "pipelines" be constructed with materials that meet certain referenced specifications and that they be marked in accordance with those specifications or MSS SP-25 (Manufacturer's Standardization Society, Standard Practice No. 25). This standard covers the Company's approach to satisfying the requirements of 49 CFR Part 192.

Specific requirements are shown in the Engineering Standards (ES), Operating Procedures (OP) and Materials Management Procedures (MMP) listed below. For Northern Border Pipeline Company, see also Accounting Policy & Procedures (APP)

ES-4701, Selection of Pipe and Piping ComponentsES-8705, Preparation of As-Built Drawings and Field Checks,ES-8706, Engineering Drawings and Records, As-Built Data for Transmis sion and Non-Rural Gathering

Pipelines, ES-8707, Engineering Drawings and Records, As-Built Data for Rural Gathering Pipelines,ES-8708, Documentation Requirements for Offshore Projects Designed and Constructed by Others,OP-10.105, Marking of MaterialsMMP-20.60, Material Marking and Certification Requirements.

* APP 14C, Material Certification Requirement Procedure.

3. POLICY

3.1 Pipe, valves, flanges, fittings and pressure containing components used in non-hazardous service such as instrument air and potable water are exempt from the requirements of this standard if the service is low pressure (<60 psig) and moderate temperature (40°F to 130°F). Hazardous fluid means a flammable, poisonous or corrosive gas, or a liquid that is poisonous, will burn, inflame or irritate human tissue, or produces flammable vapor at atmospheric pressure at or below 120°F.

3.2 Only those items which satisfy the requirements of 49 CFR Part 192 will be purchased. To accomplish this, each item purchased (by the Company or by a third party for the Company) is to be purchased from a purchasing document that lists the item specification (e.g. API 5L), the applicable edition and the appropriate markings required on the item. Note that Company "standards for purchase" when referenced in the purchase order become part of the purchase document and often specify special marking and documentation for items such as major mechanical and electrical equipment and fabricated assemblies.

3.3 Each applicable item will be verified as complying with the purchase document at the time of its receipt. Only those items which meet or exceed the purchase document requirements will be accepted by the receiving location.

* Indicates revised paragraph, this Rev. No.

Engineering StandardsStandard

0172Page

ENRON 2 of 2GAS PIPELINE DOCUMENTATION OF MATERIALS Issue Date

GROUP 06/86Rev. No. 5Date 04/95

3.4 After material is received as in 3.3 above, it will be considered usable throughout the Company's pipeline system. Each item will have markings on it to assure its use in the correct application (pressure, voltage, etc.). Correlation of specific material items to purchase documents will not exist after receipt except as determined by the Company for selected items as in 3.5 below.

3.5 The Company has elected to maintain permanent purchase records on:

a. All Y-Grade fittings except saddles, wrap-around reinforcements and high yield strength F-grade flanges.

b. Pipe for use in natural gas transmission and non-rural gathering service, and pressurized hydrocarbon liquid service, excluding all 2-3/8" O.D. and smaller piping except for 2-3/8" O.D. and smaller piping used cross country, such as for branchlines.

3.6 Correlation of material items to purchase documents will be accomplished by the following:

3.6.1 Applying the purchase document number to each item of the types listed in Section 3.5 above and to the required material certification document, i.e., mill test report, fitting certification;

3.6.2 Maintaining the item marking until the item is installed;

3.6.3 Recording applicable purchase document numbers on as-built material lists; and

3.6.4 Maintaining a permanent file of applicable purchase documents, material certifications and as-built drawings with material lists for the life of the facility.

* Indicates revised paragraph, this Rev. No.