sc20 meeting minutes api subcommittee on …mycommittees.api.org/standards/ecs/sc20/meeting...

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SC20 MEETING MINUTES January 19, 2017

2017 E&P Standards Conference on Oilfield Equipment and Standards JW Marriott

Austin, Texas

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

Neal Ferguson (Element Materials Technology), Vice chairman Time: 8:30 PM – 12:00 PM

Safety Briefing

Chairman Rick Faircloth gave briefing

Approval of Agenda

Agenda for the meeting was presented for approval - Motion made, 2nd and approved.

Review and Approval of Previous Meeting Minutes

Minutes from the last meeting held in Washington, D.C. at the 2016 E&P Summer Standards Meeting were presented. - Motion made, 2nd and approved.

Introduction of Attendees

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

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-SLB), chair of the 20A Task Group, reported.

Status: 20A -1st Edition 2012; Addendum 2 published April 2015.

Action since last SC meeting: Spec 20A, 2nd edition revision was completed January 13, 2017 with the recirculation email. As the document had a consensus, it will now proceed for final legal review and publication. However, due to the backlog in publication in API it appears that the may be end 1Q17 before publication.

Action for next SC meeting: The 20A TG to develop a small WG to assist API Quality Programs on updating the audit questions.

Licensing status: 7 licenses, 4 applicants.

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- 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.

Licensing status: 29 licenses, 5 applicants, 1 Cancelled.

- 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 who has retired. SC20 leadership will work to find a new 20C TG Chairman. SC20 to request API Standards to issue a Subcommittee Commendation for Gary Kingry years of service to API standard development.

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: 12 licensees, 1 applicant.

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

Eddie Pompa (GE Oil&Gas), new chair of 20D Task Group reported.

Status: First edition published September 2013.

Action since last SC meeting: Task group to meet and resolve Addendum 1 ballot comments and the addendum has been published.

Action for next SC meeting: Task group many meet to discuss any new issue for possible revision.

Registration/Certifiction 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 first 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 issued early March 2016 was 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. Some late objections on restraint of trade were resolved. The document is to be published in late January 2017. The TG chair at the API Winter E&P standards conference made a 20E presentation on changes in the second edition.

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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 first Edition was published June 2015.

Action since last SC meeting: 20F 2nd Edition is under development to address the CSOEM – Multi Segment bolting failures task group report issued early March 2016. A small-group has held two meetings, with assignments made for special tasks involving the integration of 6ACRA material grades and MP35N material into the Specification. Additional, minor changes are also being addressed in this revision.

Action for next SC meeting: Continue work on the second edition with possible ballot and publication by end of 2Q17.

Licensing status: 0 licenseees, 8 applicants.

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

Rick Faircloth 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 plans to have a ballot ready by 3Q17.

Registration/Certification 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/Certification status: N/A

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

Kevin Metter (Cameron-SLB), 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.

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Action for next SC meeting: Resolve comments, if any, from recirculation ballot. However, due to the backlog in publication in API it appears that the may be 1Q17 before publication.

Registration/Certification status: N/A

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

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

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 March 2017.

Action for next SC meeting: After ballot is completed, hold comment resolution meeting and continue with processing the document for publication by end 3Q17.


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

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

Status: first Edition under development, started 4Q15.

Action for next SC meeting: Continue meetings until a final draft is achieved. Planned to go out for ballot sometime in 1Q17 and with final publication by end 3Q17 or 4Q17. The TG chair at the API Winter E&P standards conference made a 20M presentation on how the document will be structured.


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

Al Gavenas, (Energy Alloys), Task Group Chair, reported on the work of the 20N Task Group

Status The TG has met six times and is 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 to have first ballot out by 2Q17.

Registration/Certifiaation status: N/A.

- Standard 20P - Qualification of Suppliers for 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 four meetings to date. We are moving forward with constructing the document and continuing to hold monthly meetings in January, February and March 2017. There is currently no estimated date for first ballot. Will plan to have first ballot out by 3Q17.

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


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

Mike Gentry- (Baker Hughes) reported on behalf of Tim Lindholm (Baker-Hughes), Task Group Chair.

Status: This is a new Task Group held two meetings in 2016 and plans to hold TG meetings and advise status going forward in 2017.

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


New Business

API Monogram Program Board Presentation – Mia Zager (Shell) chair of MPB and Vice Chair of CSOEM made a presentation on status on new advisory specifying activities and processes that are not eligible for licensing has been developed and will be ready Q2 2017. Also, advise update that the APIQR TAB has been merged with the MPB. Additional presentation made to launch a pilot audit for centralized design functions. A copy of presentation is included with the minutes.

Next Meeting The next meeting of SC20 will be at the 2017 Exploration and production Standards Conference on Oilfield Equipment and Materials at the Telus Convention Center, Calgary, Alberta, Canada, June 26- 30, 2017.

Adjournment

Motion made, 2nd and approved to adjourn the meeting at 11:15am.

Attachment:

Copy of Record of Meeting Attendance Copy of 20E presentation Copy of 20M presentation Copy of MPB presentation

RECORD OF MEETING ATTENDANCE

Group: Chairperson(s): Faircloth

Meeting: ubcommittee on Supply Chain Time: 8:30 pm - 12:00 pm Date: 1119/2017 Management (SC 2-0)

Committee members should mak changes to their contact information on the ro ter provided. For voting committees, verifY the intere t category indicated on the roster (any queries hould be referred to AP I staff). Visitors adding names to the roster will NOT automatically become members of th committee.

Indicate in the first column ( ) if YOll are: (M) Member of the commillee in session. (R) Representing a Committee Member (if so, tate the member's name), (V) Visitor - 0 L Y voting member or their representative ' may vote, or ( ) SlafT.

Name (please print clearly) CompanylEmail

API standards mecIJngs are open (0 all Intcrested partIes. By partlclpalJng In the stundardi£8110n process and signing thIS rOrnl . YOll agree (I ) to fully compl) with API 's policies and procedures governing standards lind antllrust concerns. (2) that once balloted lind approved by API . API shall have a non-exclusivc. pcrpl!tual. royalty-free worldwide Ilcen e to use an) materials submilled by the partICipant for usc in the standard. Includmg crea\lon orany dcriva\lve works. ( ) you will not provld any matenal that will VIolate the fights or any thIrd panics including, but not limIted to, patents. copyright . trade secrets. and trademarks. (4) not to prOVIde any techlllcul lIIJ'ormalion or other mah:rials that would VIolate U. export controlla\\s, (5) to dIsclose the e ISlence of uny patented Ie hn logICS 10 the materillllhat you provide, and (6) you will not make audio or video recordmgs of API meetings without the express wrlllen consem of all persons bemg recorded

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API standard mCQ\lngs are open \0 all int~rested parties By partIcipating in the standardlzallon proccss Hnd signing thi fonn. you agre\) (I) to rully comply with API's poliCIes and procedures governing standards and Mtllrusl concerns. (2) thaI once balloted and approved by API. API shall have a non-exclUSIve, perpeluaL royahy-free worldWIde license 10 use any malcflals submllU:d by the panJclpanl to! use in the stllfldaTd. including crealion of any derivative work . (3) you Will nOt provide any material that will vlolnle the righls orany third part ie including, but not limited to. pattnts. copyrights. trade secreLS. and trademarks. (4) nOl lO provide any technical infonnalion or olher malerials thnt wuuld violat!: U. expon control law . (5) 10 lliscillse Ihe exi tence Or any patented lechnologle in lhe maleriallhal you provide. and (6) you will not make audio or video recordings of APt meellngs wilholli lhe express wrlllen consenl of all persons beIng recorded.

January 17, 2017TSP/U.S. Bolt Manufacturing, Inc.

License Holders: 18 License Applicants: 10◦ USA 7 3◦ China 4 2◦ UK 2 2◦ Mexico 1 0◦ Italy 1 1◦ S. Korea 1 1◦ Malaysia 1 1◦ Singapore 1 0

Publication of 2nd Edition is imminent

Affirmative: 11 Negative: 2Approval Rate: 85%Response Rate: 93%

Total Ballots: 14◦ Operator-Users 5◦ Manufacturer 7◦ Contractor 1◦ Consultant 1

bolting manufacturerAn organization that, through the use of manufacturing equipment and processes appropriate for the bolting product form, transforms raw material into finished bolting.

technical authorityA competent and technically qualified person or organization with evidence to demonstrate the expertise, skills, and experience regarding quality and manufacturing processes necessary to perform the required verification(s).

All requirements of the referenced ASTM specifications or the equipment manufacturer’s proprietary bolting material specification shall be met except as modified by this standard. In the case of conflict between the requirements of referenced specifications and this standard, the requirements of this standard shall apply. Bolting manufactured from proprietary materials shall conform to the requirements of this standard.

a) head forging/head forming of individual fasteners;

b) heat treatment; c) threading; d) plating/coating; e) NDE; f) mechanical and hardness testing; g) metallurgical examination; h) chemical analysis.

Quality management system in accordance with ISO 9001, API Q1, or ISO 17025.

An onsite process evaluation performed by a technical authority.

Suppliers of subcontracted operations shall have a documented onsite technical authority.

a) BSL-2 requirements◦ Onsite process audit by a technical authority every

3 years.◦ Evaluation of the supplier’s documented evidence

of technical capability to perform subcontracted operations; including, certifications, production logs, written procedures, and nonconformance analyses.

b) BSL-3 requirements◦ First article evaluation of each subcontracted

process per manufacturer’s documented procedure.

The following are forging/hot heading parameters, as applicable: a) equipment; b) heating method (furnace, induction); c) temperature control (thermocouple,

optical or infrared pyrometer, fail safe cut-off);

d) times and temperatures; e) dimensional control.

Requirements for furnace loading. (5.4.6.5 & 5.4.6.6)

Requirement for control of quenchant. (5.4.6.7)

Contact thermocouple for BSL-3. (5.4.7.2)

Continuous, induction and direct resistance prohibited for BSL-3. (5.4.7.4 & 5.4.7.5)

Provided only when specified in the purchase agreement.

Zinc electroplating not permitted for splash zone or subsea service.

Internal hydrogen embrittlement prevention:◦ All electroplated parts (regardless of strength

level) shall be baked within 2 hours after plating at 375 ºF–425 ºF for 8 hours minimum.◦ Heat Treat furnace requirements apply to the ovens

used for baking.◦ Control of the electroplating bath shall be in

conformance with ASTM F519.

Test labs must meet requirements of ISO 17025. (4.2.2)

Bolting manufacture must meet the requirements of Q1. (4.2.4)

Welding is not permitted - clarified. (4.3.4)

Full reheat treatments limited to two. (4.4.2.3)

Removed dash from “Marking” – 20E1 (8.2)

Deleted “Annex A – Coating”

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Overview of Draft API Standard 20M Qualification of Suppliers of Machining Services for Use in the Petroleum and Natural Gas IndustriesAPI STANDARD 20M

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Overview of Draft API Standard 20M

4.2 Machining Quality Levels (MQL)

4.2.2 MQL 1 Machining Services Supplier

The base level of qualification to ensure that the machining service provided meets specific customer and industry requirements. A MQL 1 machining services supplier, at a minimum, shall have a self-certified quality management system.

The MQL 1 machining services supplier shall determine the processes needed for the management of machining services. A MQL 1 machining services supplier shall only supply the machining services defined in 3.1.7.

The MQL 1, machining services supplier shall conform to the quality management system (QMS) elements identified in Section 5.

Image here

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A MQL 2 machining services supplier shall establish, document, implement and maintain, at all times, a QMS in conformity with API Specification Q1 or to ISO 9001 with the addition of the QMS requirements defined in Section 5 as listed in Table 1.

A MQL 2 machining services supplier may procure raw material and outsource services only from customer specified suppliers.

Qualification to MQL 2 also qualifies a machining services supplier to MQL 1.

Image here

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4.2.4.1 QMS Requirements

A MQL 3 machining services supplier shall establish, document, implement and maintain, at all times, a quality management system in conformity with API Spec Q1 with the addition of the QMS requirements defined in Section 5 as listed in Table 1.

An exclusion to API Spec Q1, section 5.8 is not permitted. A MQL 3 machining services supplier may perform or procure raw material and/or services such as machining, material testing, NDE, heat treatment, plating, coating, and welding with the ability to approve service suppliers, subject to the limitations of Section 6 for Control Service Suppliers.

Qualification to MQL 3 also qualifies a machining services supplier to MQL 2 and MQL 1.

Image here

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4.2 Machining Quality Levels (MQL)Image here

QMSRequirements

MQL 1(see 4.2.2)

MQL 2(see 4.2.3)

MQL3(see 4.2.4)

Base Requirements Self-Assessment ISO 9001 API Spec. Q1Competency 5.2 -- --Equipment Maintenance 5.3 -- --

Test, Measuring and Monitoring Equipment

5.4

5.4.2

5.4.4

5.4.7.2

5.4.7.2

Document Control 5.5 -- --

Customer Property 5.6 -- --

Order Review 5.7 -- --Identification & Traceability 5.8 5.8 b), c), d) 5.8 b)

Inspection 5.95.9.1.2

5.9.1.3

5.9.1.2

5.9.1.3Nonconforming Product 5.10 -- --Preservation of Product 5.11 -- --Records 5.12 5.12.2 --Continued Conformity of the QMS 5.13 Not Applicable Not Applicable

Supplier Control

Prohibited from Purchasing Material or Outsourcing Services;

See 6.1

Purchasing Material or Outsourcing Services from

Customer-Specified Suppliers Per ISO

9001 + 6.2

Purchasing of Material and

Outsourcing Services from Approved

Suppliers per API Q1 + 6.3

Table 1 – Quality Management System Requirements

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6 Control of SuppliersImage here

There are additional controls for the outsourced services identified in 20M Table for the following:o Machiningo Material Testingo Heat Treatmento Nondestructive Examinationo Platingo Coating o Welding

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Sample Requirements from Table 2Image here

Table 2 – Supplier Qualification Requirements

Service Qualification Requirements

Machining

Verification of capabilities and controls through an on-site audit or a remote technical assessment that addresses the following elements of Section 5, as a minimum:

Test, measuring and monitoring equipment (section 5.4)

Customer property (section 5.6)

Identification and traceability (section 5.8)

Inspection (section 5.9)

Preservation of product (section 5.11)

Records (section 5.12)

For suppliers performing machining services, certification to API Standard 20M is acceptable in lieu of an audit or remote technical assessment.

Heat Treatment

Verification of capabilities and controls through an on-site technical audit or remote technical assessment addressing the following elements as a minimum:

Furnace instrumentation

Furnace calibration

Test, measuring and monitoring equipment

Identification and traceability

Inspection and testing

Records

For suppliers performing batch heat treatment, certification to API Standard 20H is acceptable in lieu of an audit or remote technical assessment.

NOTE API Standard 20N, Qualification of Heat Treat Services-Continuous Line is currently indevelopment.

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Documentation RequirementsImage here

Documentation requirements have been established for MQL 1-2-3.

API Monogram Program Board Update

1. An advisory specifying activities and processes that are not eligible for

licensing has been developed and will be ready Q2 2017

– Changes to API Spec Q1, Annex A will be drafted once final advisory language set

– Draft SC18TR3 content was considered in development of draft

– Draft SC18TR3 content referenced to draft key processes that will be vetted by SCs

2. The APIQR TAB has been merged with the MPB

– Applicable S1 changes are complete and will be finalized at CSOEM meeting

3. The process and criteria used for adding specs to the Monogram

Program are being documented

4. Activities have been initiated to review the current portfolio of specs

within the program

5. Launching a pilot audit for centralized design functions

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org Winter E&P Standards Conference – January 16-20, 2017

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