NDT/NDE Inspection Service in Edmonton | Buffalo Inspection Services

Presentation to Plains MidStream Canada By

Larry Kaumeyer, Chief Executive Group Kyle McOustra, VP of Operations Jonathon Edgington, Surface Supervisor Feb 8th, 2018

LEADERS IN TRADITIONAL AND ADVANCED NON-DESTRUCTIVE TESTING TECHNIQUES

Who is Buffalo?

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Largest non-union, non-destructive examination (NDE) services company in Canada Since 1979, providing unparalleled value to companies in the oil and gas industry across Western Canada for over 30 years 150 staff with 6 physical locations across western Canada New direction, new leadership with a focus on innovation and leading technological NDT applications

“Buffalo is a technology centric company that embraces continuous improvement; this has resulted in the adoption of the most up to date software, equipment and practices available, to always ensure the faster, better and cheaper option to our clients.”

Our Purpose Statement We exist to provide project and lifetime integrity for our clients’ assets and to ensure their investments reflect the best information possible to reduce all forms of risk, enhance social license and deliver better performance and optimized returns.

Our Brand Promise Buffalo will proactively deliver uncompromising quality, reporting and ongoing monitoring in a safe manner on every shot and on every job or we will do the work again at no cost to the client.

Our Footprint Aligns With Major Pipeline Routes Buffalo has six principle locations of business providing a full spectrum of inspection services.

These locations are Edmonton (Corporate Office), Red Deer (AB), Grande Prairie (AB), Fort St John (BC), Kelowna (BC), and Estevan (SK) along with independent Contractor teams that work directly with our in-house Quality and Safety Managers to ensure a consistent level of service and competitive reach across most of Western Canada. Buffalo’s fleet includes over 100 mobile units serving Western Canada.

Inspection Philosophy Buffalo Inspection Services believes that an asset integrity program must: • • • • • •

Create a baseline reference Clearly identify and quantify problem areas Provide compliant and immediate reports Integrate with client software Have value added engineering support Provide inspection solutions to problems found

All while being cost effective for the client.

We develop customized plans for the needs of our clients.

Inspection Resources In Remote Locations • Buffalo is the only company in Canada with PCN PAUT Level 2 qualified technicians specifically on the Gekko.

• Employs certified API 510, 570, 653 , CGSB, ASNT, CWB and SNT inspectors.

• Level III Inspectors in both the field and office oversee specific auditing in-house, third party auditing as required and custom procedure creation for site specific NDT requirements.

• NACE certified inspectors to conduct certification on coatings and linings.

• Advanced UT technicians in phased array, time of flight diffraction and TFM. • Equipment manufacturer relationships to support integrated solutions

Real Time Access for all Reports and Records Our clients have real time access to all reports and records via our Extranet portal tied to our Connex work order system.

• Buffalo’s proprietary work order management system, CONNEX is designed to exceed the diverse requirements of the NDE industry. It is a one-of-a-kind system and a first for the industry. A world-class product, Connex gives Buffalo technicians the tools they need to track and complete inspection reports for all inspection methods.

• This standard of electronic reporting ensures real-time code compliance across Buffalo and the ability to integrate specific client reporting requirements, resulting in the highest of reporting standards and consistency.

• Connex also ensures that our clients’ contract compliance requirements are met through the ability to track, in real time, purchase order spend and associated invoicing.

Client Extranet Portal: Access for Real Time Reporting Buffalo Connect • Through the company’s customer-facing Extranet Portal, BUFFALO CONNECT, our clients can view work orders and reports in real time.

Clients can search for reports containing specific project information, providing ease of access to specific reports as they need.

• Asset records for pipelines, tie-in connections and pipeline integrity reports are made available through Buffalo Connect to allow ease of tracking for the inspection and maintenance of these assets.

• Copies of certifications and tickets for technicians that have completed inspection reports can also be downloaded, providing an unprecedented level of transparency within the NDE industry.

Newest Technology •

Buffalo have recently acquired the new Total Focus Method (TFM) Gekko phased array units. o Enabling unprecedented resolution for hydrogen induced cracking evaluation o Full geometric and volumetric evaluations with minimal technical input o Simplified flange face corrosion analysis o Post inspection analysis and re-evaluation capabilities

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Currently, Buffalo is the only Canadian provider of PAUT with TFM.

Newest Technology •

Buffalo is also engaged currently in acquiring and utilizing the best laser, OES PAUT and hardness testing technology on a global basis.

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We firmly believe that new technology provides a higher accuracy in probability of detection and more “fact-based” decisions in asset integrity that the industry is lacking.

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We intend on leading this change as a company and believe that being a world class transporter of hydrocarbons, our clients' would benefit from utilizing the best equipment for their assets.

We have technicians across our geographic footprint to meet any of your Integrity requirements. Buffalo’s motto is “Multiple Tickets and competency in One Truck.”

Buffalo is Leading Innovation with PAUT

Electronic Scanning

TFM

TFM provides a vastly higher resolution and POD%.

Total Focusing Method (TFM)

TFM Comparison with Traditional PAUT

Phased Array Flange Inspection Technique

Inspection scan plan to assess the ID bore and raised face

Phased Array Findings • • • •

Nozzle C4 showed signs of minor, isolated corrosion at the 6 O’clock position Nozzle C5a showed signs of corrosion from the 3 to 9 O’clock positions Nozzle C5a also showed signs of corrosion on the gasket seating surface Due to part geometry limited sound amplitude was returned from the ID bore surface but corrosion patterns were still discernable

Total Focusing Method “TFM” TFM Inspection • “TFM” allows for selective discrimination of the ID bore surface.

• Removing spurious indications caused by mode conversion in PAUT

TFM (Total Focusing Method) Inspection Nozzle C4 shown, minor thickness changes across entire circumference of nozzle (+/approximately 0.5mm)

TFM (Total Focusing Method) Inspection Nozzle C5a shown, advanced corrosion across entire circumference of nozzle (approximately 4mm)

Visual Inspection Of Nozzles Nozzle C4-Minor corrosion noted at 6 O'clock on bore

Nozzle C5a-Advanced corrosion and deposits noted over entire circumference

Nozzle C4 Minimal signs of corrosion (epoxy coating damage noted on flange face) minor corrosion noted at 6 O’clock on bore surface

Nozzle C5A Substantial damage to flange face Corrosion under deposits around circumference of bore

TFM on Bold with Seal Weld

TFM on Bolt

Three Dimension View of Pipe via Gekko

ILI Inspection validation with TFM SCOPE: Verification of data collected by inline inspection equipment provided by pigging vendor, to determine actual wall loss at feature locations. Locations were shadow shot by a separate vendor and marked for TFM inspection

ILI Inspection verification with TFM Results: During validation inspection, we were able to determine the remaining wall thickness as a tangible measurement that will allow of trending/tracking of corrosion rates to ensure client does not sustain a process safety failure. Shadow shots from RT did not generally match locations found a marked with TFM.

Locations highlighted in RED are locations marked by RT vendor. Inherent issues with shadow shot inspection resulted in areas being marked for inspection that did not contain any indications of orrosion.

ILI Inspection verification with TFM Results CON’T: Below are signals obtained from TFM inspection that clearly show the shape, depth, and length of corrosion indications.

ILI Depth % = 26% wall loss TFM Findings = 42% wall loss

ILI Depth % = 29% wall loss TFM Findings = 23% wall loss in deepest feature (ABOVE): Photos from cut out sections

ILI Inspection verification with TFM Results CON’T: Below are signals obtained from TFM inspection that clearly show the shape, depth, and length of corrosion indications.

(ABOVE): Photo from cut out section

Utilizing the M2M Gekko’s TFM feature we have been able to accurately identify and represent the features found with the ILI equipment while also providing accurate measurements of each feature location. This allows us to offer our clients a more accurate outlook on remaining life of pipelines that are showing signs of corrosion as well as providing baseline data for new lines.

To our clients, Buffalo means trust A sampling of our clients

Why Buffalo?

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Transparency: Buffalo regularly conducts internal audits on all of our technicians to ensure that our technicians demonstrate and maintain an active commitment to both quality and safety. We share the results with our clients.

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Committed to a TQMS program and ISO 9001 compliant.

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Radiation and General Safety Program and in good standing with Partners in Injury Reduction. COR Certified in AB and BC.

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Buffalo has PCN Certified Level II PAUT technicians across Western Canada to meet your needs.

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We deploy technicians from the closest points to reduce added costs and enhance communication and execution at the point of our clients’ needs.

Why Buffalo?

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Buffalo is investing in innovation and technology in support of our core purpose of providing “life time integrity for our clients assets”.

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We believe in a partnership approach to reduce risks and support social license.

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We look forward to building a plan that can meet all of your needs.

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We are prepared to offer volume discounts based on dollars.

OUR HEADQUARTERS 3867 Roper Road Edmonton, AB, T6B 3S5 Phone: (780) 486-7344 24 Hour Dispatch: (780) 975-6475 Grande Prairie: (780) 933-6573 Fort St John: (250) 785-0202 Red Deer: (403) 318-8866 Kelowna: (250) 808-9375 Estevan: (306) 421-2883

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www.buffaloinspection.com