A Case Study: SAFETY INSTRUMENTED BURNER MANAGEMENT SYSTEM (SI-BMS)

1. A Case Study: SAFETY INSTRUMENTED BURNER MANAGEMENT SYSTEM (SI-BMS) Safety Symposium Houston, TX May 24, 2006

2. Mike Scott, PE, CFSE • VP, Process Safety with AE Solutions • Registered Professional Engineer in AK, SC,GA & IL • Certified Functional Safety Expert (CFSE) • Author / presenter of numerous technical papers on process safety • ISA Instructor • SI-BMS Webinar • SI-FGS Webinar • SI-BMS Class • ISA SP84 Committee Member • BMS Subcommittee member • FGS Subcommittee co-chair • ISA Safety Division BMS sub-committee chair

3. Bud Adler • Director, Business Development with AE Solutions • Active in process instrumentation field for over 40 years • Numerous sales, marketing and executive positions with instrumentation vendors • Life Member of ISA • Member of ISA SP84 Safety Committee • Member of the BMS Subcommittee • Member of the FGS Subcommittee • Author of numerous technical papers related to process safety • Frequent presenter at technical conferences and user seminars worldwide • Director-elect of ISA Safety Division

4. Project Overview • Installation of two (2) new redundant Boilers • Single Burner Boiler (NFPA 85) • Capable of firing natural gas, oil and / or waste gas • 1365 PSIG steam at 310,000 lbs/hr • Client is fully S84 aware and has implemented numerous IEC61511 compliant projects • Complex multiple entity project team

5. Chemical Manufacturer Engineering Firm Boiler OEM Burner OEM SI-BMS Consultant Project Team Organization Chart • Multiple sub-contractors • Various degrees of SIS application knowledge • Boiler OEM had primary PO for Boiler • Burner OEM and SI-BMS contracts were subs to Boiler OEM SIS Aware Semi-SIS Aware NON-SIS Aware NON-SIS Aware SIS Aware

6. Construction Industry Institute • Front End Loading “effort level directly affects the cost and schedule predictability of the project”. • As the level of FEL tasks increase: • The project cost performance from authorization decreases by as much as 20% • The variance between project schedule performance versus authorization decreases by as much as 39% • The plant design capacity attained and facility utilization improved by as 15% • The project scope changes after authorization tend to decrease • The likelihood that a project met or exceeded its financial goals increased

7. SIS FEL Package • HAZARD Identification • Conduct HAZOP • Risk Assessment • Perform LOPA • Develop • SIF List • SIS Design Basis Support Report • Safety Requirements Specification • Develop • Lifecycle Cost Analysis • Interlock List • Sequence of Operations • Conceptual Design Specification • Redline P&ID’s • Develop • System Architecture Diagram • E-stop Philosophy • SIS Logic Solver Specification – Bill of Materials • Approved Inst Vendor List / Procure Plan for SIS • SIL Verification Report • Control Panel Location Sketch • Control Philosophy Specification • Summary Safety Report • Construction Estimate, TIC (+/- 20 %)

8. Safety Lifecycle Start Establish Operating & Maintenance Procedures Project Design Basis / Company Standards Define Target SIL Develop Safety Requirements Specification Conceptual Process Design Pre-Startup Safety Review Assessment SIS Startup, Operation, Maintenance, Periodic Functional Testing SIS Conceptual Design, & Verify Compliance With SRS Define PHA Input /Output Requirements Modify or Decommission SIS? Perform SIS Detail Design Perform Process Hazards Analysis & Risk Assessment SIS Installation, Commissioning, and Pre-Startup Acceptance Test Apply non-SIS Protection Layers to Prevent Identified Hazards or Reduce Risks SIS Decommissioning No Yes SIS Required? (Based on ISA-S84)

9. PT 107B PT 101B PT 101C PT 101A PT 106B PT 106C PT 111A PT 111C PT 111B PT 107A PT 107C PT 106A Initial Design P&ID – NG & Bio Gas SV 110 FO SV 108 SV 109 Combustion Chamber Pilot Line FC FC SV 105 Flame Sensor Igniter FO Main Flame HV 104 HV 103 BN 102 BS 102A Main Flame Natural Gas BS 102B Main Gas Line FC FC Main Flame BS 102C Pilot Flame SV 105 BS 102C FO HV 104 HV 103 Bio Gas Bio Gas Line FC FC

10. PT 201A PT 301A PT 301C PT 301B PT 201C PT 201B FT 309 Initial Design P&ID - Oil Combustion Chamber HV 204 HV 203 No.2 Oil Main Oil Line FC FC SV 305 FO HV 304 Steam Atom Steam Line FC

11. FT 501A FT 501C PDT 401B PDT 401C PDT 401A FT 501B Initial Design P&ID - Air STACK ID Fan Combustion Chamber Clean Air PT 602A PT 601B PT 601C FD Fan FGR Air Combustion Air

12. PT 702A PT 701B PT 701C LT 801B LT 801C LT 801A Initial Design P&ID - Steam Steam Drum

13. Start SIS Conceptual Design Architecture Options Perform SIL Calc’s (PFDavg and MTTFS) Calculate Benefit to Cost Ratio B/C > 1.0 No Yes Calculate Lifecycle Cost Lowest LCC? No Yes Economic & Safety Analysis

14. Risk Analysis Results 7 – SIL 1; 4 – SIL 2; 4 - SIL A; 1 - MPF

15. Is a BMS a SIS? • Yes, a BMS is a SIS if: • Risk Analysis determines additional risk reduction is required and a Safety Integrity Level of 1 or greater is assigned to a BMS Safety Instrumented Function • No, a BMS is not a SIS if: • Risk Analysis determines no additional risk reduction is required

16. SIL Verification Results

17. SIL Verification Results

18. Start SIS Conceptual Design Architecture Options Perform SIL Calc’s (PFDavg and MTTFS) Calculate Benefit to Cost Ratio B/C > 1.0 No Yes Calculate Lifecycle Cost Lowest LCC? No Yes Economic & Safety Analysis

19. Benefit-to-Cost-Ratio   B-C Ratio = FNo-SIS x EVNo-SIS - FSIS x EVSIS CostSIS + CostNT B-C Ratio = Ratio of benefits to cost FNo-SIS = Frequency of the unwanted event without a SIS FSIS = Frequency of the unwanted event with a SIS EVNo-SIS = Total expected value of loss of the event without a SIS EVSIS = Total expected value of loss of the event with a SIS CostSIS = Total lifecycle cost of the SIS (Annualized) CostNT = Cost incurred due to nuisance trips (Annualized)

20. B-C Ratio – 2oo3 Architectures

21. B-C Ratio – 1oo1 Architectures

22. Start SIS Conceptual Design Architecture Options Perform SIL Calc’s (PFDavg and MTTFS) Calculate Benefit to Cost Ratio B/C > 1.0 No Yes Calculate Lifecycle Cost Lowest LCC? No Yes Economic & Safety Analysis

23. Lifecycle Costs Procurement Costs Description System Design Engineering costs associated with Front End Loading and Detailed Design Purchase Cost of Equipment including Factory Acceptance Testing and Shipping Installation Construction costs associated with SIS Start-up Commissioning, PSAT and Initial Functional Testing of SIS Operating Costs Description Engineering Changes Engineering costs associated with maintenance Consumption Power, spare parts, instrument air, etc. Maintenance Inspection, Functional Testing Cost of MTTFS Description Lost Production Cost of lost production Asset Loss Cost of lost equipment Lifecycle Cost Analysis

24. LCC Analysis Results

25. LCC Analysis Results

26. Final Results

27. Conclusion • Complex project team with multi-layered contractual arrangement • Implementation of a SIS FEL saved project team cost and schedule • Implementation of Safety Lifecycle reduced Risk associated with BMS • Implementation of Economic Analysis coupled with Safety Availability requirements resulted in over $500K in savings

28. Make your money Conclusion Proper Implementation of the Safety Lifecycle Can Reduce Cost of Ownership! work for you! 28

29. Thank You! Are There Any… Questions Applied Engineering Solutions, Inc. www.aesolns.com