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We have the

energyto make things better

… for you, for our investors

and for our stakeholders.

April 11, 2014

Wade E. Miller, P.E. – Planning & Design Manager

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Background

●Odor fade occurs when iron oxide reacts with tertiary butyl mercaptan (TBM) in our odorant.

●Result is a chemical reaction that converts TBM to compounds with much weaker odor characteristics.

●Conversion, absorption and adsorption of the TBM by the steel continues to take place until equilibrium has been reached within the pipe wall.

●An under odorized gas condition can result if actions are not taken to ensure that adequate odorant stays within the gas stream.

●A “no gas odor” call was received in 2012 within a new science wing of Glen Rock High School.

●Although the cause of this event was odor fade in newly installed steel customer piping, it was determined that the phenomenon needed further investigation to ensure adequate Company procedures are in place.

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Intermediate Steps Taken

• Conducted sniff testing on large main projects

• Only done for large diameter or low flow projects

• Tests conducted immediately after gas-out and two week

later

• Hired contractor to inject oil and odorant into a

replacement project of 8,900 ft, 16” steel main

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Goal: Develop Company procedures to address odor fade

Two Areas of Focus

• Mitigating Odor Fade during Construction Activities

• Research

• Testing of Internally Coated Pipe

• Safety Testing

• Recognition and Awareness by Field Personnel

• Technical Support News Bulletin

• Company Standards Update

• Operator Qualification Program Update

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Mitigating Odor Fade During

Construction

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Research

• Reviewed responses to previous AGA SOS surveys

• Reviewed industry journals and advisories

• Requested information on company standards from

other LDCs in the Northeast

• Held discussions with multiple odorization contractors

• Weighed pros and cons of various methods including:

• Pickling

• Oil and odorant injection

• Portable odorizer

• Glycol slug

• Internally coated pipe

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Option: Internally Coated Pipe

• An epoxy coating is mill-applied to the ID of steel pipe

• Advantages

• One northeast utility using this method

• No impact to project scheduling

• Provides enhanced flow efficiencies

• Protects against corrosion during pipe storage

• No risk of odorant release or over-odorization

• Disadvantages

• Adequate test data on the use is unavailable

• Application of internal coating increases the cost of steel pipe

• Risk of exacerbating internal corrosion if coating is damaged

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Evaluating Internally Coated Steel Pipe

• Test project performed at PSE&G’s Central Plant

• Eight 20 ft lengths of 12” steel pipe tested with

different ID treatment

• (2) lengths bare, uncleaned

• (2) lengths bare, wire brushed

• (2) lengths ID coated with Endcor 745 (Dampney) epoxy, 2

mil avg. DFT, edge to edge

• (2) lengths ID coated with Pipeliner SG (Induron) epoxy, 2

mil avg. DFT, edge to edge

• Each sample sealed with compression end cap

• Test risers were constructed of 1” galvanized pipe

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Evaluating Internally Coated Steel Pipe

• Each sample pressurized to approximately 5 psig

• One of each sample was pressurized with MEG

injected gas

• One of each sample was pressurized with clean

pipeline gas

• All gas used was from the same supplier with

known odorant

• Duration: 65 Days

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Odor Testing Instruments

• Odor level tested with two different instruments

Odor Handy Plus(Axel Semrau)Odorometer

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Preparation of Test Pieces

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Baseline and Initial Testing

• Baseline odorant level: 0.59 lbs/MMCF

• Initial readings taken after pressurization of all test pieces

• All bare steel test pieces had no detectible odorant level at initial reading

• More frequent readings were taken on an extra bare steel test piece

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Test Results – Bare, Uncleaned Steel Pipe

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0.05

0.1

0.15

0.2

0.25

Me

rca

pta

n R

ea

din

g (

lbs

/MM

CF

)

Duration (hr:min:sec)

Test Pipe #9 - Bare, Uncleaned

Test indicates bare steel pipe experienced odor fade within minutes of

exposure

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Test indicates positive mercaptan retention

results with internally coated pipe up to 65 days

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Test indicates positive odor retention results with internally coated

pipe to 30 daysFederal Requirement - RDL

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Post-Test Visual Examination – Endcor 745

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Results of Odor Fade Testing

• Internally coating steel pipe is effective in mitigating

odor fade.

• Neither coating was measurably more effective.

• The coatings did not degrade over the course of the

test.

• Pipeliner SG has a lower VOC content, which makes

it safer for the coating mill to apply.

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Additional Considerations

• Safety

• Engineering & Design

• Gas Quality and Composition

• Cost

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Safety

• What is welder exposure due to burning epoxy

coating on the ID?

• Worst case scenario testing was performed.

• Short (open-end) pipe lengths

• Roll welding of joints

• Two consecutive butt welds and a branch weld to create an

extended period of continuous welding

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Welding to Standard PSE&G Procedures

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Impact on Internal Coating

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Welder Exposure Testing

• Pipeliner SG MSDS was reviewed to determine

which compounds to sample for

• An environmental testing contractor was used to

perform the monitoring during welding and post-

test sample analysis

• Workplace exposure criteria are published by OSHA

and ACGIH

• Exposure criteria are identified as personal

exposure limits (PELs) and threshold limit values

(TLVs)

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Welder Exposure Test Results

• Coating decomposition compounds measured

• Aldehydes (12 compound scan)

• Volatile Organic Compounds (24 compound scan)

• Inorganic Acids (6 compound scan)

• Nitrogen Compounds (2 compound scan)

• Eight-hour time weighted averages (TWAs) calculated based on 2 hours of continuous stationary welding time – not indicative of typical welding operations

• All TWAs were below published OSHA PELs and ACGIH TLVs

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Engineering and Design

• Coating provides corrosion protection during storage

• Coating reduces roughness of the pipe ID, yielding improved flow

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Gas Quality and Composition

• PSE&G has had little experience with internal

corrosion issues due to a very dry historical gas

quality

• In areas of active internal corrosion, gaps in internal

coating can accelerate corrosion

• Analysis should be done based on your system to

determine the level of risk for internal corrosion

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Cost

• Coating cost varies based on pipe diameter and

quantity

• PSE&G’s internal analysis indicates that ID coating

increases the per-foot cost of steel pipe from 4.5%

to 12%

• Additional cost increases can be incurred if the pipe

to be internally coated has already been externally

coated, due to increased handling precautions

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Recognition and Awareness by Field

Personnel

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Operator Qualification Program Update

• Currently individual odor verification is done in the

M&R department only. This group is responsible for

performing sniff tests.

• Moving forward:

• Inclusion of individual odor verification capability in OQ

purging air/gas and investigate leak/odor complaint tasks

(scratch & sniff test cards). Tasks scheduled for 2015.

• Inclusion of odor verification in gas-out operational

procedures.

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Technical Support News Bulletin &

Company Standards Update

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Implemented Practices

• Mitigating Odor Fade during Construction

• All steel pipe 12” and larger to be internally coated with

Pipeliner SG epoxy, 2 mil avg. DFT

• Decision to internally coat 8” and smaller steel pipe to be

made on a case-by-case basis

• Recognition and Awareness by Field Personnel

• Distribution of Technical Support News Bulletin to

Distribution and AS personnel

• Update procedures in Distribution and AS standards

• Update OQ program for Distribution and AS

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Acknowledgements

• Liberty Coating Company for providing coated pipe samples

• Mulcare Pipeline Solutions for loaning the Odor Handy hand-held mercaptan concentration meter

• Project Team

• Tim Lauder• Gabriel Wood, P.E.

• Other PSE&G Departments

• M&R and Plants• New Brunswick Distribution• Edison Training Center• Procurement

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Questions?