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SC20 MEETING MINUTES June 29, 2016

2016 E&P Standards Conference on Oilfield Equipment and Standards Grand Hyatt Washington

Washington, DC

API Subcommittee on Supply Chain Management (SC20) Rick Faircloth (Cameron), Chairman

Neal Ferguson (Element Materials Technology), Vice chairman George Hill (GJMH Consulting), Secretary

Time: 1:30 PM – 5:00 PM

Introduction of Attendees

Rick Faircloth, SC20 chair, opened the meeting. Those in attendance introduced themselves. A voting quorum was established. An attendance record was circulated.

Approval of Agenda

Agenda for the meeting was presented and approved.

Review and Approval of Previous Meeting Minutes

Minutes from the last meeting held in Austin, Texas at the 2016 E&P Winter Standards Meeting were approved.

Status of SC20 Specifications and Standards

- Specification 20A – Carbon Steel, Alloy Steel, Stainless Steel, and Nickel Base Alloy Castings for Use in the Petroleum and Natural Gas Industry

Rick Faircloth (Cameron), chair of the 20A Task Group, reported.

Status: The First Edition of Spec 20A was published March, 2012; Addendum 1 published October 2013; Addendum 2 published April 2015.

Action since last SC meeting: Spec 20A, 2nd edition revision in process. Publication is planned by the end of 2016

Action for next SC meeting: May meet in January 2017 during the API E&P Winter Meeting in Austin.

Licensing status: 3 licenses, 6 applicants.

- Specification 20B – Open Die Shaped Forgings for Use in the Petroleum and Natural Gas Industry

Joel Russo (FMC), chair of the 20B Task Group, reported.

Status: First edition published April 2013. One errata published in December 2013.

Action since last SC meeting: N/A.

Action for next SC meeting: N/A.

 

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Licensing status: 24 licenses, 11 applicants.

- Specification 20C – Closed Die Forgings for use in the Petroleum and Natural Gas Industry

Rick Faircloth reported on behalf of Gary Kingry (Ellwood Texas Forge Co.), chair of the 20C Task Group.

Status: First edition published October 2009; Second edition published November 2015.

Action since last SC meeting: N/A

Action for next SC meeting: N/A

Licensing status: 9 licensees, 2 applicants.

- Standard 20D - Non-Destructive Examination (NDE) Services for Equipment Manufactured in accordance with API Product Specification used in the Petroleum and Natural Gas Industry

George Hill reported. The chair of Task Group 20D is open.

Status: First edition published September 2013.

Action since last SC meeting: Color code issues addressed in Addendum 1. Ballot closed on Addendum 1 on 11/19/15 with no negative votes. Comments were received that require resolution. Addendum 1 ballot remains open.

Action for next SC meeting: Task group to meet and resolve Addendum 1 ballot comments.

Registration status: None

- Specification 20E - Alloy and Carbon Steel Bolting for use in the Petroleum and Natural Gas Industry

Tom Goin (US Bolt), chair of the 20E Task Group, reported.

Status: The 1st Edition was published October 1, 2012.

Action since last SC meeting: Draft of 20E 2nd Edition to address CSOEM – Multi Segment bolting failure task group report completed and released for ballot on May 31, 2016, with the ballot closing on July 12, 2016. TG goal is to resolve any ballot comments and release for publication by Oct. 1, 2016.

Action for next SC meeting: Publication of Specification 20E, Second Edition.

Licensing status: 16 licensees, 4 applicants.

- Specification 20F - Stainless Steel and CRA Bolting for use in the Petroleum and Natural Gas Industry

Tom Goin (TSP), chair of the 20F Task Group, reported.

Status: The 1st Edition was published June 2015.

Action since last SC meeting: 20F 2nd Edition is under development. A small-group has held two meetings, with assignments made for special tasks involving the integration of 6ACRA material grades and MP35N material into Specification 20F. Additional minor changes are also

 

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being addressed in this revision

Action for next SC meeting: Future work on SC20F is being delayed until conclusion of 20E 2nd Edition. Work is expected to resume in Sept. 2016, with a target publication by year end, 2016.

Licensing status: 0 licenseees, 8 applicants.

- Standard 20G - Qualification of Welding Suppliers for Equipment Used in the Petroleum and Natural Gas Industry

George Hill reported on behalf of Dr. Daya Singh, (GE Oil & Gas), chair of the 20G Task Group.

Action since last SC meeting: TG developed a general outline of the document and began to focus on specific areas.

Action for next SC meeting: Continue developing Standard 20G.

Registration status: N/A.

- Standard 20H - Heat Treatment Services – Batch Type for Equipment used in the Petroleum and Natural Gas Industry

Joel Russo (FMC), chair of the 20H Task Group, reported.

Action since last SC meeting: 1st Edition published in October, 2015. Currently being colored coded and audit questions and auditor training being developed.

Action for next SC meeting: N/A

Registration status: N/A

- Standard 20J - Distributors of Metallic Materials for use in the Petroleum and Natural Gas Industries

Kevin Metter (Cameron), Co-Chair of the 20J Task Group reported.

Status: 1st Edition ballot closed in April 2016. Publication is targeted for 4Q16.

Action since last SC meeting: Ballot comments were resolved and a draft prepared for a recirculation ballot. 

Action for next SC meeting: Resolve comments, if any, from recirculation ballot.

Registration status: N/A

- Standard 20L - Qualification of Suppliers of Non-Metallic Seals for Equipment used in the Petroleum and Natural Gas Industry

Neal Ferguson (Element), chair of the 20L Task Group, reported.

Status: The TG has met monthly and reviewed the latest API 20L draft, making changes to the text and directives as appropriate. Goal is to have the document ready to go out for ballot by the Winter Meetings in January.

 

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Action for next SC meeting: Continue with monthly meetings in order to complete the document.

Registration status: N/A.

- Standard 20M - Qualification of Suppliers providing Machining Services for Equipment used in the Petroleum and Natural Gas Industry

Bud Weightman (QSI), chair of the 20L Task Group, reported.

Status: 1st Edition under development, started 4Q15

Action for next SC meeting: Continue meetings until a final draft is achieved.

Registration status: N/A.

- Standard 20N - Qualification of Suppliers for Heat Treating Services – Continuous Furnaces used in the Petroleum and Natural Gas Industries

Rick Faircloth) Cameron, reported on the work of the 20N Task Group on behalf of Al Gavenas, (Energy Alloys), Task Group Chair.

Status The TG has met for the 6th time and are in the process of developing the specific expectations for furnace uniformity of continuous line heat treatment facilities. API 20H, which has been published, is being used as a base line document. The TG has agreed upon the applicability and scope of work, and has started work on the structure of the document.

Action for next SC meeting: Continue developing Standard 20N.

Registration status: N/A.

- Standard 20P - Qualification of Suppliers Providing Plating and Coating Services for Equipment used in the Petroleum and Natural Gas Industry

Terry Hood (S&S Plating), chair of the 20P Task Group, reported.

Status: The TG has held two meetings to date. We are moving forward with constructing the document and continuing to hold monthly meetings. There is currently no estimated completion date or deadlines set with regards to publication at this time.

Action for next SC meeting: Continue developing Standard 20G.

Registration status: N/A.

- Standard 20R - Qualification of Suppliers for Subsurface Electronic Equipment used the Petroleum and Natural Gas Industry

Rick Faircloth (Cameron) reported on behalf of Tim Lindholm (Baker-Hughes), Task Group Chair.

Status: This is a new Task Group; first meeting is planned for July 2016.

Action for next SC meeting: Begin developing Standard 20R.

Registration status: N/A.

New Business

 

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API Monogram Program / QR Presentation – Ana Filgueras (API) made two presentations to group: 20 Series: Program Status and Executive Summary of Standard 20E Bolt Study. Copies of both presentations are included with the minutes.

Next Meeting The next meeting of SC20 will be at the 2017 E&P Winter Standards Meeting at the J.W. Marriott

Austin in Austin, Texas, January 16-20, 2017.

20 Series:Program Status2016 Summer Standards Conference

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20 Series: Licensees and Licenses

0 10 20 30 40 50 60

Licenses

Licensees

Active Certifications

Active Certifications

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20 Series: Top Specifications

0

30

20A 20B20C

20E

Number of Licenses per 20 Series Spec

Spec Product Number

API-20B Group 2: Alloy Steel Forgings 24API-20B Group 1: Carbon Steel Forgings 22API-20B Group 3: Non-Duplex Stainless Steel Forgings 19API-20E Studs 14API-20E Hot Formed Nuts 12API-20E Fully Machined Bolts, Screws and Nuts 12API-20E Hot Formed Bolts and Screws 11API-20C Closed Die Forgings 10

20 Series: Top Products

20 Series: Licensee Regional DistributionChina-Taiwan

India-South Asia

USA

South East Asia

United Kingdom-IrelandMexico-CentralAmericaWestern Europe

PER COUNTRYChina 33India 5United States 5United Kingdom 2Italy 1Malaysia 1Mexico 1Singapore 1

Spec Title Number

API-20B Open Die Shaped Forgings 11API-20F Corrosion Resistant Bolting 8

API-20ACarbon Steel, Alloy Steel, Stainless Steel, and Nickel Base Alloy Castings 6

API-20E Alloy and Carbon Steel Bolting 5API-20C Closed Die Forgings 2

20 Series: Applications

32 Applications Received5 Countries

20 Series: 2016 Licensee Statuses

0

10

20

30

40

50

60

Current Statistics

ActiveWithdrawn*

7*Withdrawn in 2016

Remember…Report nonconforming product, process and QMS concerns to API Monogram-QR at:• Nonconformance reporting website: http://ncr.api.org/ncr.aspx, OR

Ian Wood at woodi@api.org• Information kept confidential• All complaints investigated and appropriate action taken• Website shows process and important information

Executive Summary of Standard 20E Bolt Study

22 April 2016

Monogram / APIQR Program

Executive Summary of Standard 20E Bolt Study – 22 April 2016

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Project DescriptionProject Manager Monogram/APIQR Program Manager Project Sponsor Director, API Standards

Project Description

• Review Monogram/APIQR program audit reports related to API Spec 20E (Alloy and Carbon Steel Bolting for Use in the Petroleum and Natural Gas Industries) licensees to:

• Identify possible trends in non-conformities related to raw materials provided to API Spec 20E licensees by their suppliers

• Where possible, differentiate between technical (API Spec 20E) and quality management process (API Spec Q1) issues

• Data as basis for API subcommittee considerations for possible improvements in API Spec 20E, API Spec Q1, and other API standards to address concerns with standard requirements or industry performance.

• Identify ways to improve auditing of licensees and their suppliers

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Executive Summary of Standard 20E Bolt Study – 22 April 2016

Background Information

API Spec 20E: Alloy and Carbon Steel Bolting for Use in the Petroleum and Natural Gas Industries

• First API Spec 20E Licensing audit in October 2013• First License Issued in November 2013 • Less than 25 API Spec 20E Licensees and Applicants

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Executive Summary of Standard 20E Bolt Study – 22 April 2016

Analysis of QMS Audits of Manufacturers • Considers only QMS non-

conformities documented during audits of manufacturing facilities

• Excludes non-conformities against ISO 14001, OHSAS 18001 and API Spec Q2

• Based on QMS audits of manufacturers conducted between October 15, 2013 and March 31, 2016

• Small sample size of 20E audits may have had an impact on the data and analysis

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API Spec 20E Audits and Audits of Other ManufacturersOctober 15, 2013 to March 31, 2016

Executive Summary of Standard 20E Bolt Study – 22 April 2016

Year API Spec 20E Audits(% of Total)

Audits of Other Manufacturers(% of Total)

October 15, 2013 to year end

0.55 % 99.45 %

2014 0.29 % 99.71 %

2015 0.36 % 99.64 %

Up to March 31, 2016

0.12 % 99.88 %

TOTALS 0.33 % 99.67 %

Analysis – Distribution of Non-Conformities

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API Spec 20E QMS Audits % of NCs Documented Against Requirements

Executive Summary of Standard 20E Bolt Study – 22 April 2016

API QMS Audits of Other Manufacturers % of NCs Documented Against Requirements

• Distribution of non-conformities cited during QMS audits of other manufacturers follows a similar pattern to API Spec 20E audits

• Higher percent of non-conformities cited against requirements of API Spec Q1

Analysis – Frequency of 20E NCs by Section and Requirements

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API Spec 20E Audits % of Total NCs v/s Section of API Spec 20E

Executive Summary of Standard 20E Bolt Study – 22 April 2016

Analysis – Percentage of Total NCs Documented Against API Spec Q1

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API Spec 20E Audits % of Total NCs v/s Section of API Spec Q1

Executive Summary of Standard 20E Bolt Study – 22 April 2016

Analysis – Variations in NCs Cited During API Spec 20E and Other Manufacturer Audits

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% of API Spec Q1 NCs for API Spec 20E and Other Manufacturer AuditsOctober 15, 2013 to March 31, 2016

Executive Summary of Standard 20E Bolt Study – 22 April 2016

Analysis – NCs Cited in Product, Technology, Document/Record and Other QMS Areas

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% NCs Cited in Product, Technology, Document/Record and Other Areas of the QMS for API Spec 20E and Other Manufacturer Audits 

October 15, 2013 to March 31, 2016

Executive Summary of Standard 20E Bolt Study – 22 April 2016

Summary• Data may be used to inform changes and

improvements to API Spec Q1 and API Spec 20E• Summarizes information that can be used to asses

industry performance and trends in QMS and technical areas

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Executive Summary of Standard 20E Bolt Study – 22 April 2016