the pressure equipment safety authority

Risk Based Inspection Programs

for
Pressure Equipment

2001-March-27 Rev 0
AB-505
 Risk Based Inspection Programs for Pressure Equipment AB-505 01/03

Table of Contents

FOREWORD ......................................................................................................................... 2

1.0 PURPOSE...................................................................................................................... 3

2.0 INTRODUCTION............................................................................................................ 3

3.0 DEFINITIONS................................................................................................................. 4

4.0 APPLICATION AND LIMITATIONS .............................................................................. 4

5.0 INSPECTION INTERVALS ............................................................................................ 5

6.0 BASIC REQUIREMENTS OF A RISK-BASED INSPECTION PROGRAM ................... 5

6.1 LOGICAL AND FULLY DOCUMENTED PROCESS.................................................................. 5
6.2 PERSONNEL .................................................................................................................. 6
6.3 DOCUMENTATION .......................................................................................................... 6
6.4 PRE-COMMISSIONING INSPECTIONS ................................................................................ 7
6.5 MANAGEMENT OF CHANGE ............................................................................................. 7
7.0 DETERMINATION OF RISK .......................................................................................... 7
7.1 SYSTEM DEFINITION ...................................................................................................... 8
7.2 HAZARD IDENTIFICATION ................................................................................................ 8
7.3 CONSEQUENCE ASSESSMENT ........................................................................................ 9
7.4 LIKELIHOOD ASSESSMENT .............................................................................................. 9
7.5 RISK DETERMINATION .................................................................................................. 10
7.6 MITIGATION/INSPECTION PLAN ..................................................................................... 11
7.7 REASSESSMENT .......................................................................................................... 11
REFERENCE PUBLICATIONS........................................................................................... 12

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FOREWORD

This document defines the minimum requirements for the development and use of risk
based inspection (RBI) to manage the safety of pressure equipment operating in Alberta.
While a RBI program is not mandatory in Alberta, a company who chooses to apply RBI in
this context must meet the requirements specified herein.

A committee of representatives from ABSA (the pressure equipment safety authority) and
the Upstream Chief Inspectors Association (UCIA) developed this document with input from
other industry groups. The requirements specified in this document will apply in all industries
where RBI may be utilized.

This document will be reviewed annually by a review committee, which will include
representatives from ABSA and user groups such as ARPIA (Alberta Refinery and
Petrochemical Inspection Association) and UCIA to ensure that it remains current with
industry practice and that safety considerations are adequately addressed.

If you have any suggestions on how to improve this document, please send them to ABSA
at 200, 4208-97 Street, Edmonton, AB, T6E 5Z9, Attention: Bill Litvinchuk.
(litvinchuk@albertaboilers.com)

Committee Members:
Bill Litvinchuk, ABSA
Bernie Hurst, ABSA
Mike Poehlmann, ABSA
Joe Dusseault, AEC Oil & Gas
Roy Foley, AEC Oil & Gas
Pat Teevens, AEC Oil & Gas
Paul Jensen, Amoco Canada Petroleum Company
Colin McGovern, Anderson Exploration
Alan Greenfield, Chevron Canada Resources
Albert Van Roodselaar, Chevron Canada Resources
Philip Girard, Petro-Canada Oil & Gas
Rick King, Gulf Midstream Services

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1.0 PURPOSE

The purpose of this document is to promote and maintain pressure equipment safety
in Alberta by defining the essential elements to be addressed in a RBI program.
Through the use of these guidelines, it is intended that RBI programs will be applied
correctly, based on sound judgement and principles, such that the inherent fiscal and
operational benefits of RBI can be realized in conjunction with enhanced safety.

RBI is a complex process that requires careful and detailed development and
planning. It is not the intent of this document to provide comprehensive information
regarding RBI program development. Owners, wishing to pursue such a program,
are directed to the reference documents section for more detailed information about
RBI.

A comprehensive risk based program will typically consider environmental, economic,

and other factors in addition to safety. Since ABSA is concerned with the safety and
integrity of pressure equipment, this document addresses safety and environmental
considerations only.

2.0 INTRODUCTION

Risk Based Inspection is a management process by which inspection and other

mitigation requirements are determined based on the inherent risk of a pressure
equipment item. The inherent risk of an item is considered to be the product of the
likelihood of the item to fail, and the expected consequences should that failure
occur.

In general, the risk is determined in accordance with a defined, logical and consistent
method. The likelihood and consequences of failure are determined for each item
through a qualitative assessment (or in some cases more rigorously through a
quantitative assessment). The assessment is based on available information
including equipment failure modes, design data, process data, inspection and
operating history, and equipment location. Based on this assessment the relative
likelihood and severity of a failure is determined. These values are typically plotted
on a matrix with the location of the point in the matrix indicating the risk hazard
associated with the item. Items, which exhibit both a high likelihood and high
consequence of failure, will be identified as requiring the most attention from
inspection and other mitigation techniques. Similarly, items with a low likelihood and
low consequence of failure would receive a relatively lower degree of attention.

The use of a RBI approach, to manage pressure equipment safety, offers many
benefits. Primarily, it allows inspection resources to be allocated in the most efficient
way to minimize risk. A proper RBI assessment may show that a reduced frequency
or scope of inspection for lower risk items is justified. It allows a benefit analysis to
be performed whereby the owner can ensure that inspection resources are being

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allocated properly. Traditionally, mitigation (such as inspection) is focused on

reducing the likelihood of failure. Since a RBI program causes the owner to consider
consequences, other mitigation methods designed to reduce the consequences of
failure may identify alternate techniques that should be applied to a particular vessel
or system.

A RBI program can be very beneficial. However, it can not be over-emphasized that
such a program must be carefully planned and controlled, and requires skilled,
knowledgeable personnel to operate effectively. If not properly applied, the process
can focus attention away from items that are incorrectly assessed as having a low
risk. This can result in hazardous situations.

3.0 DEFINITIONS
3.1 Public Occupancy means any facility where members of the general public are likely
to be present. This would include educational facilities, hospitals, office buildings,
apartment buildings, and plant control rooms.

3.2 Owner-User means an organization who has provided a satisfactory program for
managing the integrity of their pressure equipment and has been issued an ABSA
Certificate of Authorization to perform activities defined in their accepted Owner-User
Quality Manual on file with ABSA.

3.3 Pressure Equipment means a thermal liquid heating system or any containment for
an expansible fluid under pressure, including, but not limited to, fittings, boilers, fired
heaters, pressure vessels and pressure piping systems, as defined in the
Regulations.

4.0 APPLICATION AND LIMITATIONS

RBI may be applied in any industry in Alberta provided that the requirements of this
document are satisfied. In addition, all RBI programs must meet the intent of API 580
(qualitative assessments at minimum). The pressure equipment in a facility to be
managed under a RBI program needs to be clearly defined . Consideration should be
given to the impact on the auxiliary equipment not included in the RBI scope. RBI is
not to be applied to public occupancy equipment.

Because RBI is a complex process that requires a thorough understanding of

processes, material degradation and failure mechanisms, mitigation strategies and
techniques, inspection techniques and their reliabilities, companies must meet and
demonstrate certain basic pre-requisites before embarking on a RBI program in
Alberta.

For a RBI program to be accepted in Alberta, the company must be an Owner-User

with a valid Certificate of Authorization from ABSA. The company must maintain an

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accurate inventory of all pressure equipment along with relevant design details. The
scope of the Owner-User Program must include pre-commissioning inspections
(inspection of new installations) since this is the time when the initial risk assessment
of new installations should be made. The Owner-User audit performed by ABSA
must include the RBI program. The results of the audit must demonstrate program
compliance with this document.

A company, wanting to implement a RBI program, must have the resources and
structure to make such a program work. This would include having the ongoing
involvement of experienced corrosion, materials, maintenance, and process
engineers/technologists. If a company proposes to contract some or all of this
capability to an outside vendor, then this would have to be reviewed by ABSA on a
case by case basis. It is essential that the personnel involved in the operation of the
RBI program are intimately familiar with the processes, operating parameters,
procedures, history and other factors to make thorough risk assessments.
Furthermore, since risk tolerance is highly subjective, it is mandatory that policies
governing RBI be the responsibility of upper management, within the owner
company, as defined in the Owner-User Program.

5.0 INSPECTION INTERVALS

The ABSA document Inspection and Servicing Requirements for Pressure
Equipment, defines the maximum permissible inspection intervals for pressure
vessels and boilers. That document defines how inspection and operating history are
to be used to determine the appropriate interval grade to be assigned. The maximum
inspection intervals are set based on the type of equipment and the grade assigned,
and their application under a RBI program.

6.0 BASIC REQUIREMENTS OF A RISK-BASED INSPECTION

PROGRAM

For a RBI program to be successful in assessing risk and assigning appropriate

inspection intervals and mitigation techniques, the program must meet some basic
requirements. The following sections address the minimum requirements that must
be met for a RBI program to be acceptable for pressure equipment in Alberta.

6.1 Logical and Fully Documented Process

The assignment of a risk based inspection interval for a pressure equipment item
must follow a well defined, rigorous, and logical process to ensure that all pertinent
information has been considered. Otherwise, critical factors may be overlooked.

The RBI process must be clearly documented in a written procedure. This procedure
must be a referenced and controlled document under the Owner-User Quality

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Manual. The procedure must define, in detail, each step to be taken during the risk
assessment process. The procedure must detail how hazards are defined for each
pressure item, how the likelihood and consequences of failure are established, and
how this is used to determine risk level and inspection intervals. The RBI Procedure
will be subject to audit by ABSA during Owner-User review and renewal audits.

6.2 Personnel

The RBI program must define the personnel required to participate during each stage
of the risk assessment, including the required qualifications and experience. At
minimum, operations, maintenance, inspection, and process personnel, experienced
with the equipment under consideration, must be included in the consequence and
likelihood assessment stages. A corrosion specialist with sufficient qualifications and
experience to understand the process, predict failure mechanisms, and identify
limitations in inspection techniques, must be involved in the entire risk assessment.
The role of the chief inspector in the RBI process must be clearly defined.

Part of the RBI process must be an evaluation of the personnel involved in the risk
assessment to ensure that the knowledge and experience required to make sound
judgements are present. The impact of personnel changes on the RBI program must
be managed and controlled to ensure continued competency.

All personnel participating in the RBI program must be fully trained in the program
and understand the implications of the decisions made. The training must be
documented.

6.3 Documentation

It is essential that all RBI assessments be clearly documented with all factors
contributing to the final risk assessment defined. At minimum the documentation
must include:

Team members performing the assessment and their qualifications

Reassessment interval
Factors used to determine risk
Assumptions made during the assessment
Risk assessment results (unmitigated risk levels)
Follow up mitigation strategy
Mitigated risk levels.

This documentation will allow risk assessments to be reviewed on a regular basis

and to be revised based on changes to process, updated inspection information, and
other new information. This documentation will be required during internal and ABSA
audits of the RBI program.

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6.4 Pre-commissioning Inspections

Pre-commissioning inspections must be an integral part of the written RBI procedure.

It is critical that a risk assessment is made at this time and that appropriate mitigation
and inspection intervals are set. The RBI program must address how specific
challenges (such as a lack of historical operating data) are to be addressed.

6.5 Management of Change

A critical factor in the success of a RBI program is the ability of the company to
manage change. Even seemingly minor and insignificant changes can have a
tremendous impact on the likelihood or consequences of pressure equipment failure.

Management of change must be controlled by a written procedure that is referenced

in the Owner-User Quality Manual. The process by which the impact of changes
identified is reviewed under the RBI program must be audited by ABSA during the
Owner-User audits.

API-750 and OSHA 29CFR part 1910 provide guidance on the development of an
effective management of change program.

6.6 Computer Models

Computer models developed to assist in the determination of risk must be used with
great care. It is necessary that the persons using the model be fully trained in the
RBI process and understand how the computer determines risk based on the data
that it receives. The system must ensure the integrity of computer records. All
computer generated risk levels must be reviewed and verified, by the owner, to be
consistent with the principles used to develop the RBI program. The model must be
part of the ABSA audit process. The accuracy of the model may be demonstrated by
comparing computer results with some generated manually.

7.0 DETERMINATION OF RISK

The following discusses the typical stages of a RBI assessment and defines the
minimum elements that must be addressed during each stage. The stages are as
follows:

System Definition
Hazard Identification
Consequence Assessment
Likelihood Assessment
Risk Determination

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Mitigation/Inspection Plan
Reassessment.

As the exact process for assigning risk to pressure equipment will vary from company
to company, it is not necessary that the system outlined in this document be followed
provided that all essential elements are addressed. Much more detail regarding risk
assessment is available in some of the referenced documents, particularly API 580.

7.1 System Definition

This stage involves the collection of pertinent data to be used in assessing the
likelihood and consequence of failure for each pressure item.
As a minimum, the following data must be considered, and collected if appropriate:

Operating pressure and temperature (including transient and upset conditions)

Process fluid description (including flammability, toxicity, and reactivity)
Process stability
Process impurities
Equipment design data (including materials, temperature, and pressure)
Inspection and repair history
Operating history
Current mitigation strategy
Personnel exposure
Proximity to the public
Environmental consequences
The RBI program must define the required information to be collected.

7.2 Hazard Identification

Once the background information is in place, the hazards must be identified. This
involves identifying potential and credible degradation modes and damage
mechanisms expected, based on the equipment being studied, using the inspection
and process data and industry experience. OSHA 29CFR part 1910 can be
referenced. This stage is critical and requires careful analysis by a corrosion
specialist having sufficient detailed knowledge of the equipment, process, and failure
mechanisms to make accurate evaluations (see Personnel above).

All basic modes of degradation must be considered when identifying damage

mechanisms for equipment. Modes of degradation include thinning due to corrosion
or erosion, cracking, metallurgical changes, mechanical forces, etc. API 572 & 580
can be referenced regarding modes of deterioration.

At this stage, potential failure scenarios (for example, pit to leak to ignition, or crack
to rupture) are to be identified based on the damage mechanisms expected. This will
assist in evaluating consequences and also, mitigation methods in later stages.

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7.3 Consequence Assessment

As previously discussed, the consequences of a failure of pressure equipment can

include impact on public safety, employee safety, and the environment, as well as
direct and indirect financial costs. The focus of this guideline and any RBI program
applied to pressure equipment must be safety. Although the other consequences are
certainly important, they must not be given higher importance than safety. As well,
the importance of safety must not be diluted due to inclusion of other consequence in
a RBI program.

The following factors must be considered for each failure scenario during the
consequence assessment:

Proximity to residential areas, highways, other industries

Frequency and density of employee population
Process fluid properties (with respect to flammability, toxicity, exposure limits and
reactivity)
Potential for fatality or knockdown
Potential for explosion, BLEVE, or vapour cloud
Contained energy
Environmental impact

The outcome of this consequence assessment must be utilized when determining

risk (see Risk Determination below).

It is useful to assess the consequences of failure in both mitigated and un-mitigated

states. This will allow for a determination of the effectiveness and reliability of the
mitigation used and may highlight other forms of mitigation that would be more
beneficial.

7.4 Likelihood Assessment

In the context of RBI, likelihood is the probability that a given failure event will occur.
Often likelihood will be measured as a frequency of failure events over a period of
time (for example - events per year). Likelihood assessment is often considered the
most difficult stage in determining risk. The owner must demonstrate a valid process
based on historical data, an understanding of failure mechanisms, current operation,
and recognition of possible future changes to compile all available data into a single
value or category.

Each failure scenario must be assessed to determine the likelihood of it occurring. A

number of factors must be considered to accomplish this as detailed below:

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Design Factor considering design parameters versus operating parameters,

design complexity, adequacy of design given current knowledge and codes
Process Factor considering potential for upset and transient conditions, process
stability, system cleanliness, operating history, operating procedures, operator
skill, and the potential for failure of protective devices due to plugging or other
concerns
Inspection Factor considering the effectiveness of previous inspections based
on damage expected, inspection techniques utilized, and accessibility
Damage Factor considering results of previous inspections (direct and
equivalent), known or expected damage mechanisms, rate of deterioration, and
the date of the last inspection
Equipment Factor considering the complexity of the equipment
Condition Factor considering the physical condition of the equipment
The outcome of the likelihood assessment must be utilized when determining the risk
(see Risk Determination below).

It is useful to assess the likelihood of failure in both mitigated and unmitigated states.
This will allow for a determination of the effectiveness and reliability of the mitigation
used and may highlight other forms of mitigation that would be more beneficial.

7.5 Risk Determination

Based on the previously obtained consequence and likelihood of failure, the risk level
for each item can be assigned. The RBI program must define how risk is derived.
Typically, consequence and likelihood are plotted against each other in a matrix with
the location of the point falling into a range with a pre-defined risk index. A generic
example of a risk matrix is shown below in Figure 1. The same matrix (or other
method) must be used consistently for all risk assessments. The matrix is subject to
ABSA acceptance during audits. A revision to the matrix shall require review by
ABSA.
Increasing Risk
Likelihood of Failure

Increasing

Increasing
Consequence of Failure
Figure 1. Generic Risk Matrix

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In most cases, the highest resulting risk for each item based on the analyses should
be used to determine the inspection and mitigation strategy. However, it may be
necessary to consider more than one risk level if different degradation modes, that
require different mitigation techniques, are involved.

The critical step, during this stage, is the assignment of the level of risk to the matrix.
The RBI program must define how each risk will be addressed in terms of inspection
frequency and scope, and other mitigation techniques. Typically this is achieved by
segregating blocks in the matrix as having acceptable and unacceptable risks, and
assigning required actions for each risk level. This is a policy decision that must
come from upper management, within the owner company, as defined in the Owner-
User Program.

7.6 Mitigation/Inspection Plan

A RBI program must have a mechanism for establishing a mitigation/ inspection plan
(including intervals) based on the risk level determined from the matrix. The plan
must be appropriate to the level of risk and consider the expected failure modes and
the key factors affecting risk. It must define inspection techniques to be used,
specific regions to be examined and the nature of damage to be expected. Mitigation
activities, as appropriate, are to be documented and validated as part of the plan.
Examples may include (but are not limited to) the following:

Modify process
Modify operating procedures
Upgrade alarm and detection systems
Replace or repair equipment
Construct secondary containment or restraints
Control of ignition sources.

7.7 Reassessment

The RBI program must include updating the risk assessments to ensure that the
results are current with the most recent inspection, process, and maintenance
information. The effectiveness of mitigation techniques must be validated. At
minimum, RBI reassessments are to be performed under the following conditions:

After changes to the process, personnel, or other critical factors; or when new
information becomes available that could impact the previous assessment
After new inspection data is obtained (after turnarounds)
After a preset maximum time period has elapsed.

The specified maximum time period must be established and documented with
respect to its suitability for ensuring that risk assessments remain current.

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REFERENCE PUBLICATIONS

API 510 Pressure Vessel Inspection Code *

API 570 Piping Inspection Code *

API 572 Inspection of Pressure Vessels *

API 580 Recommended Practice Risk Based Inspection *

API RP 750 Management of Process Hazards

OSHA 29CFR part 1910 Process Safety Management of Highly Hazardous

Chemicals; Explosives and Blasting Agents; Final Rule

ABSA - Inspection & Servicing Requirements for Pressure Equipment

* These documents are required for a RBI Program

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