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RIM SEAL FIRE PROTECTION FRAUD

RIM SEAL FIRE PROTECTION HOLLOW METALLIC TUBE TYPE DETECTION OISD 116 117 MOPNG FRAUD SCAM

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RIM SEAL FIRE PROTECTION FRAUD

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  1. Rim Seal Fire Protection System This slide presentation carries information about an irregularity committed while amending Oil Industry Safety Directorate (OISD) standards OISD 116 and 117. Information is intended for benefit of all stake holders involved in decisions pertaining to procurement of Automatic Rim Seal Fire Protection System for protection of Floating roof Tanks. Automatic Rim Seal Fire Protection System specified by OISD namely Hollow Metallic Tube Type Linear Heat Detection using foam based extinguishing media is not certified by UL/VdS/FM/LPCB for Rim Seal Fire Protection of Floating Roof Tanks. This irregularity will have far reaching implications that can result in procurement of unapproved Automatic rim Seal Fire Protection system and jeopardize safety of the oil installations.

  2. In October 2009 a devastating fire destroyed IOCL depot in Jaipur. Government constituted a committee headed by M.B.Lal to enquire into the incident and suggest remedial measures to prevent re-occurrence. M.B.Lal committee recommended that all Floating Roof tanks shall be protected by an Automatic Rim Seal Fire Protection System. Go to next slide to view the relevant document.

  3. It is pertinent to note that the recommendation was generic in nature without reference to any particular type/make/model of the system that would encourage competition and provide flexibility in procurement for the benefit of the oil industry. At this point in time, applicable OISD standards for Automatic Rim Seal Fire Protection System were OISD 116 and OISD 117 2008 edition that recommended two types of system namely foam based with suitable detection and clean agent based with quartz bulb type detection. Subsequently Petroleum Ministry set up a committee of Chairmen of IOCL BPCL and HPCL to revise OISD 116 and 117 2008 edition vide MoPNG circular No.R-21012/1/2008.OR-1 dated 26.10.2009. The motto behind setting up of the Chairmen committee was as follows.

  4. Go to next slide to view the relevant document.

  5. The committee in their first meeting chaired by Chairman of IOCL was held on 26.11.2009 and concluded that

  6. A second meeting was held on 4.5.2010 where it was concluded Go to next slide to view the relevant document.

  7. Following recommendations were given by EIL referred in serial 3.3 above Go to next slide to view the relevant document.

  8. It is important to note that EIL had very clearly recommended that all the systems shall have UL/FM/VdS/LPC approval / listing for the composite system. Hollow metallic tube type detection with foam media was not meeting this criteria, only the clean agent was meeting the criteria. Information obtained from ONGC Uran through RTI reveals that hollow metallic tube type detectors had generated 44 false alarm and 10 fault alarms from 2005 to 2009. Leakages n the detection tubing and malfunctioning of the evaluation unit ADW were identified as the major causes. Go to next slide to view the relevant document.

  9. It is clear that CMD ONGC misreported that linear heat detection system was functioning satisfactorily. Based on the incorrect feedback given by CMD ONGC the linear heat hollow metallic tube detector was considered for inclusion in the OISD 116 and 117 standards apart from clean agent system After release of MOM of the second Chairmen committee meeting by Executive Director OISD vide letter EDS:CC-2 dated 4.5.2010 supplier of Hollow Metallic Tube Type Detection system with foam based extinguishing media approached the Chairman of IOCL and CMD of BPCL, who chaired the second meeting of Chairmen committee held on 27.4.2010, requesting him to recommend only Hollow Metallic Tube Type Detection system with foam based extinguishing media in order to have monopoly and thwart competition posed by clean agent based system. Hence Chairman of IOCL wrote an email advising Chairman of BPCL and HPCL not to consider clean agent based system even though clean agent system was recommended in the second Chairmen committee meeting held on 27.4.2010.

  10. After taking care of personal interest given by one of the manufacturer, the recommendations were changed to suit him. Go to next slide to view the relevant document.

  11. The above decision was not a part of the Chairmen committee meeting (MOM) but was an email exchanged as per the request of the supplier of hollow metallic tube type detector for favoritism. • No de-merits or other reasons were specified for exclusion of clean agent based system despite the fact that the clean agent system had complete system approval and used worldover. In fact quartz bulb efficacy was proven since it • Was recommended by OISD vide OISD 116 and 117 for Rim Seal Fire Protection since it is non-electrically operated and hence reliable in lightning prone areas • Was Recommended by OISD for protecting comparatively more hazardous storage facility such as liquefied Petroleum Gas mounted storage facilities vide OISD 150 • Had extinguished rim seal fire on one of the tanks at IOCL Vadinar and second rim seal fire on one of the tanks at Shell Petroleum. Go to next slide to view the relevant document.

  12. Thus it is clear that Rim Seal Fire Protection system with Quartz bulb detection despite having proven performance was deleted. The above recommendations thus concluded that only those rim seal fire protection system that use Hollow Metallic Tube Type Detection System with foam based extinguishing media should be used on Floating Roof Tanks. Go to next slide to view the relevant document.

  13. Further the Chairmen committee in their recommendations specified that these system should be certified by international certifying bodies UL/VdS/FM/LPCB. The system comprises of detection system and extinguishing system. These recommendations were forwarded to Oil Industry Safety Directorate for putting up before the 28th Safety council meeting for adoption in OISD 116 and 117 standards This aspect came to the knowledge of the supplier who tried to change the recommendation to his advantage but was too late since these recommendations had reached OISD, hence supplier approached some key personnel in OISD involved in amending the standards to modify Chairmen committee recommendation from complete system approval to approval of detection system. A comparative statement prepared by OISD clearly reveals how OISD modified the Chairmen recommendation to favour the supplier.

  14. Go to next slide to view the relevant document.

  15. OISD thus diluted the Chairmen recommendations while amending the OISD standards by specifying that only the detector viz Hollow Metallic Tube Type Linear Heat Detection shall be certified by UL/VdS/FM/LPCB and not complete system ( detection system and extinguishing system). Finally OISD published the standards 116 and 117 in October 2010 specifying Rim Seal Fire Protection System using Hollow Metallic Tube Type Detection certified by UL/VdS/FM/LPCB. Rim Seal area is classified as a hazardous area of zone 1 category according to the Petroleum Rules 2002. It is pertinent to note that these international certifying bodies have not certified Hollow Metallic Tube Type Detection for zone 1 application. However it is certified for non-hazardous application which means the certification is not valid for Rim Seal Fire Protection application. Concerned personnel in OISD did not verify this aspect. Oil companies under the pressure from Petroleum ministry for implementing the M.B.Lal committee recommendation and complying with defective OISD standards began floating tenders. They soon discovered that Hollow Metallic Tube Type Detection System was not certified for zone 1 by UL/VdS/FM/LPCB. UL Certificate submitted by the manufacturer of Hollow Metallic Tube Type Detection system with foam based extinguishing media having certificate number UTHV.S7197. Go to next slide to view the relevant document.

  16. UL website mentions products certified for hazardous location fall under the UIPV category and not UTHV. Go to next slide to view the relevant document.

  17. As a result the tenders were either cancelled or kept in abeyance. OISD realized the above mistake hence decided to amend the standards to introduce an equivalency clause. Tender was invited calling vendors for demonstrating their technology. Go to next slide to view the relevant document.

  18. A Technical Expert Committee (TEC) was formed by OISD to evaluate and recommend equivalent/superior system. The TEC comprised of Director CBRI Roorkee, Professor of IIT Delhi, representative from Indian Institute of Petroleum Dehradun with coordinator from OISD. OISD had an agenda to demonstrate to the oil companies that there was no equivalent / superior system other than Hollow Metallic Tube Type Linear Heat Detection and thereby send a message to go ahead with the procurements. In response to OISD tender Indian and International vendors submitted their proposals for approval of equivalent/superior assuming that the exercise was genuine. However when all of them were rejected did they realize that OISD intentions were malafide, OISD ensured other vendors were not approved.

  19. TEC concluded that • The proposals submitted by the vendors were examined and evaluated by the Technical Expert Committee (TEC) and after due diligence it was concluded that none of the offered system is Equivalent to Linear Hollow Metallic Tube type Rim Seal Fire Detection System with foam based extinguishing media. • However, TEC noted that Impolene Tube Type Rim Seal Fire Detection System can be considered equivalent provided the detection system is UL Listed and/or FM/VdS/LPC approved for the intended purpose of its use. • Go to next slide to view the relevant document.

  20. None in the ministry questioned the first recommendation of TEC as to how the Hollow Metallic Tube Type Detection not approved for intended use can be superior to Impolene detection (that needs to be approved for its intended use) and the second recommendation as to how Impolene tube Detection system rejected by the Chairmen committee was re-introduced by this committee. Summary of irregularity appears in the next slide

  21. Chairmen of IOCL retired on 1.2.2011 and CMD BPCL retired on 18.8.2010.

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