Pipeline Projects

Pipelines Construction Management

and
Commissioning Procedures

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Pipeline Projects

Elements of Construction Management

Construction Planning
Project Scheduling
Project controlling
Construction Management
Project Implementation
Commissioning Procures
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Construction Planning & Scheduling

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Construction Planning - Prerequisites

Pre construction activities

Establishment of offices / camps
Resource identification & allocation
Suitable Manpower
Logistics (Vehicles, Office paraphernalia)

.
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Pre-construction Activities

Reconnaissance Survey
Detailed Engineering Survey
ROW Acquisition
Land Acquisition
Soil Investigation
Stations
HDD crossings
Mainline route
.
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Pre-construction Activities

Crossing Permissions
Rail
Road
Water-bodies
Foreign Pipelines
.

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Pre-construction activities

Environmental Clearances
EMP/RA study
PCB Clearance
MoE&F Clearance
Forest Clearance
CRZ Clearance

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Pre-construction activities

Other Statutory clearances

Explosive Clearance
Clearance from Town & Country Planner
Clearance from Maritime Board / Port Trust
Clearance from Navigational Safety in Port
Committee

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Detailed Route Survey

Detailed map study to obtain optimum route

passing through specific obligatory points
satisfying technical constraints
Route to avoid reserved & protected forest area,
water logged and marshy areas etc. to the extent
possible
Pipeline route to stay clear of inhabited areas &
wild life sanctuaries
Clear corridor to the possible extent
Effort to minimise pipeline length
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Activities leading to ROW Acquisition

Cadastral Survey
Gazette Notification u/s 3(1) of P&MP Act
Serving of Notices, inviting objections and
hearing of the cases etc.
Gazette Notification u/s 6(1) of P&MP Act
Taking Possession of ROW
Compensation as per P&MP Act
Opening of ROW
Termination of Operation / Closing of ROW
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Cadastral Survey - Objectives

To assess amounts of compensation to be paid

towards ROW acquisition
To assess amount of compensation towards
standing crop, trees etc. at the time of taking of
ROW and of presumptive crops during PL Laying

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Cadastral Survey - Activities

Collection and tracing of village maps

Marking of route and width of ROW on village
maps
Extraction of plotwise area within ROW
Consolidation of list of plot nos. and respective
area village wise in sequential manner
Segregation of private land from Govt. land and
public bodies

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Acquisition of Right of Way (ROW)

Acquisition of ROW means to acquire only Right

of User in Land in accordance with The
Petroleum & Mineral Pipelines (Acquisition of
Right of User in Land) Act, 1962 (50 of 1962) as
amended in 1977.
18 M strip of land is acquired as ROW for laying
of Pipeline

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Pre-requisites for ROW Acquisition

Notification in Central Gazette regarding

declaration of Competent Authority u/s 1 of
P&MP Act - for dealing with cases related with
land and further notifications etc.
Competent Authority Dy Collector / DRO /
Tehsildar (On deputation)
Services of State Govt. Revenue personnel like
Tehsildar, Revenue Inspector, Patwaris etc. (on
deputation / contract)
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Taking Possession of ROW

As per Section 7(1), Govt. / Corporation can enter

upon the land and lay pipeline after 6(1)
No pipeline can be laid under
land used for residential purpose / permanent
structure prior to 3(1)
land which is appurtenant to a dwelling house

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Section 9(1) - Constraints in land

use after 6(1) Notification

Landowner is entitled to use the land as before

3(1) Notification provided :
Landowner shall not construct any building or
structure
Landowner shall not construct or excavate any
tank, well, reservoir or dam
Landowner shall not plant any tree on the said
land which has been notified u/s 6(1)

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Opening of ROW

Subsequent upon 6(1) Notification in Gazette,

ROW can be opened for commencement of
construction activities and for handing over to
contractor
Notices served to individual landowners for start
of construction activities
Preparation of Panchnama in respect of each plot
indicating no. of trees, bushes, standing crops,
kutcha well and other features.
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Compensation as per P&MP Act

As per Section 10(1), landowner shall be

compensated for any damage or loss; amount to
be decided by CA
As per Section 12, CA shall, for all purposes of
Act, have powers of Civil Court
If amount of compensation is not acceptable to
either parties, they can appeal to District Judge

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Land Compensation

Equivalent to 1/10th of the land cost prevailing in

the market on date of 3(1) Notification in Gazette
Cost of land to be obtained from records of land
sale deeds with registration authority of Tehsil

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Crop Compensation

Standing crop / Presumptive crop

As per prevalent market rates obtained from
market committees or Upaj Mandis in nearby
towns and the yield pattern of the crop as per land
(Non cultivable / cultivable / Irrigated / Non
irrigated)

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Disbursement of Compensation

Govt. / Corporation to deposit amount of

compensation declared in award, with CA
CA shall maintain separate account in respective
sub-treasury of states
Disbursement by Cash / Cheque

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Closing of ROW / Termination of operations

Once the construction is over, NOCs are taken

from the landowners by contractor and handed
over to the pipeline owning company.
Pipeline owning company sends the draft of the
Gazette notification to MoP&NG for termination
of operation for publication in the Gazette of
India.

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Procurement of Land

By Direct purchase from Private parties

By Transfer of Govt. land
By Govt. acquisition as per L A Act, 1894
By Consent award

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Crossing Permissions

Identification of jurisdiction
Submission of application
Joint survey of the crossing sites
Preparation of estimates & drawings by agencies
Issuance of demand notice
Security deposit / Supervision charges
Agreement signing
Receipt of permission for crossing
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NOC from Pollution Control Board

As per Section 21 of the Air (Prevention &

Control of Pollution) Act,1981 and Section 25
of the Water (Prevention and Control of
Pollution) Act, 1974, no industry can be
established or operated without consent of
State Pollution Control Board.
In case, pipeline is passing through more than
one state, applications to be submitted to all
the state PCBs.

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Environmental Clearance

As per section 5 of The Environment Protection

Rules 1986, formulated for implementation of the
Environment Protection Act, 1986, Central Govt.
can impose prohibition / restriction on the
location of industries in an area by notification of
such intention.
Environmental Clearance is issued by MoE&F.

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Environmental Clearance

Vide gazette notification no. 60(E) dated 27.01.1994, MoE&F

directed that certain projects listed in the schedule I
annexed to that notification, can not be undertaken unless
environmental clearance is obtained from Central Govt.
Petroleum Pipelines covered under Schedule I
However, as per gazette notification of November 2002, New
Pipeline Projects costing less than Rs 100 crore and
Pipeline Augmentation Projects costing less than Rs 50
crore are exempted from this clearance.

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Environmental Clearance

Copy of NOC received from respective SPCBs

submitted to MoE&F
An Expert Committee constituted by MoE&F
examines the project
Intimation of issuance of the environment
clearance given to the public through publication
in the local newspapers.
Report on compliance of conditions stipulated in
the environmental clearance submitted to MoE&F
on six monthly basis.
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Forest Clearance

Forest (Conservation) Act1980

Objective of this Regulation is to prevent
deforestation and to check the environmental
deterioration.
Section 2(ii) of the Act restricts the use of forest
land for non-forest purposes; unless prior
approval of Central Govt. is obtained.

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Forest Clearance

Types of Forest
Reserve Forest
Protected Forest
Unclassified Forest
Forest clearance required for reserved, protected and
unclassified forests.
For felling of certain species of trees, permission of CF
is to be obtained even if the trees are on private land.

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Forest Clearance

Detailed proposal submitted to DFO concerned

along with the afforestation charges @ 10 times
the number of trees to be felled, the estimate for
which is obtained from DFO office
Land for compensatory afforestation not required
to be transferred by user deptt. if the total forest
land involved is <1 Hectare
As per latest Supreme Court guidelines,
Afforestation Charges for Protected Forest are to
be paid at Net Present Value, NPV Basis, which is
over and above the normal charges
NPV is 5.0 9.0 Lac / Ha of forest land
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CRZ Clearance

CRZ Govt has declared the coastal stretches of

Seas, Ways, Estuaries, Creeks, Rivers &
Backwaters which are influenced by tidal actions
upto 500M landwards from High Tide Line
Pipeline construction permitted
Clearance required from CRZ Authority

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Explosive Clearance

As per Section 3 of the Petroleum Act 1934, no

one shall import, transport or store petroleum
products without obtaining license for the same.

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Explosive Clearance
Procedure

After projects approval, application submitted to

Chief Controller of Explosives, Nagpur along with
the hazardous area layout plan of stations, route
maps of mainline and drawings of storage tanks.
CCE issues approval for commencement of
construction.

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Explosive Clearance

The license is issued for a period of one year

and it is to be got renewed every year from the
concerned Regional Office of the Explosives
Department.

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Clearance from town & country planning dept.

Depending upon the regulations in the particular

state, clearance is to be obtained from the Urban
development / Town Planning department for
construction of the buildings in pump stations /
terminals / repeaters and the prescribed
stipulations are to be followed.

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Clearance for Offshore facilities

Maritime Board / Port Trust

Navigational Safety in Port Committee

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Construction Planning

Establishing Field Offices

Establishing Field Camps
Manpower positioning
Pre-construction documentation
Road maps with approach roads to ROW
Reference Manuals
Copies of Acts

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Project Scheduling

Planned dates for executing activities and

meeting milestones
Project is monitored & controlled against this
schedule

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Scheduling through software

Primavera
MS Project
Project Scheduler
Project Workbench

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Pipeline
Projects

Flow Chart
Project
Approval

Communication sent
to furnish detailed
scope of works

Details received

incorporated. Final
PERT schedule
circulated

Comments received

Draft PERT schedule

circulated
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Project Controlling

Create detailed Work Breakdown Structure (WBS)

Determine the critical path
Pay special attention to activities on critical path
Concurrence of management for resource
availability
Regular monitoring of resources
Taking full advantage of all floats in activities

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Financial Progress

Monthly forecasting and phasing of expenditure

Monitor financial Commitment & Expenditure
Expenditure on key milestones tracked closely
Analysis of variation in scheduled and actual
Financial progress
Appraisal of reasons for variations to management

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Implications of project delay

Direct losses
Cost Overrun
Reduced rate of return
Financing costs (Interest on loans,
Depreciation)
Loss of market
Indirect Losses
Contractual complications
Lost synergy
Consequential losses
Loss of goodwill

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Time Extension
Reasons:
Required due to extra items and deviation in
contract quantity
Force Majure conditions
Synchronisation with dependent projects
Delay in Statutory Clearances

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Concepts in Pipeline
Construction Management

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Motto of Project Management

Safety

: Ensure no accident .

Quality

: As per specification.

Completion

: No time over-run, without claims,

extra items and variations.

Cost

: No cost over-run.

Strong determination to complete the project on

time. Time is as valuable as money.
Team spirit is necessary for success.

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Project Managers Role

Make aware the contractor and his key personnel about
the requirements of the project.
Convince the contractor to perform and adhere to
schedule.

Encourage them to accelerate progress, catch-up with

the delays and time lost.
Pay the contractor promptly.

Try to be fair and reasonable. Understand the difficulties.

Do not look at or treat the contractor with contempt.
Success of the contractor is the success of the project
manager.
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Construction Management
Cuts across the boundaries of functional
management like Engineering, Materials, Contract
Execution, Operations, Finance and Human
Resources Management.
Adopts an integrated approach to move onto the
concept of Projectisation from the earlier
philosophy of Productisation.
Directed at customer orientation.

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Construction Controlling
Process of measuring progress made vis--vis planned
schedule.

Evaluating what should be done to bridge gaps.

Taking corrective actions.
Enabling project manager to:

Identify reasons and possible action steps to correct

the deviations from planned performance.
Monitor specific project results to determine if they
comply with the relevant quality standards, costs.
Find ways to eliminate the cause of inferior quality
and cost over-runs.
Take mid-term corrective actions.

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Construction Controlling
SAP being implemented across the corporation.
Would facilitate

Resource leveling.
Single window data processing.

Expeditious information sharing.

Periodic interaction between HO & Units.
Faster decision making.
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Implementation
Many problems arise due to involvement of multiple
agencies, lack of coordination and absence of single-

point responsibility.
LSTK concept intends to overcome these.
Also enables one-to-one interaction with Owner.
LSTK approach adopted selectively, keeping critical
activities in Owners scope.
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Building Trusteeship
Reaching out to people at grassroots level.
Creating awareness about the need for effective,
cohesive working for attainment of common goals and
objectives.
Accomplishing feeling of togetherness.
Developing climate that fosters creativity.
Bringing stakeholders on common platform for common

appreciation of key issues.

Treating multiple agencies involved in the project as
partners.
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Gaining new Insights

Knowledge is power.

Critical to update the knowledge and skills of project

managers.

Workshops with involvement of resource persons,

consultants and contractors for exchange of ideas,
energizing the thought process and providing new
insights to all team members.
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Collaborative Process
Collaboration with business partners.

Involvement of business partners in decision-making

process.

Improving the efficacy of organizational learning process

through mutual sharing.

Sharing of resources by different contractors for the

common cause.
Aligning diversity and creating synergy.
Win-Win situation.
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Pipeline Construction & Safety

Video coverage of Mainline construction activities
(KBPL construction_film).

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Commissioning
Procedures
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Aspects of Commissioning Guidelines

Pipeline Systems details and route & profile maps

Facilities installed and P&I diagram
Commissioning prerequisites
Operation Philosophy and positioning of operating
personnel
Commissioning methodology & procedures and
deployment of commissioning team
Commissioning Tools.
Commissioning materials, water & air
Safety requirements & precautions to be taken
Disposal of commissioning water
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Pipeline Systems details

System configuration and hydraulics
Detailed Pipeline Route Map and Profile Map
Chainages and altitudes of pump stations, scrapper
stations and delivery stations.
List of various types of crossings along with their
chainages and altitudes, terrain details, location of
block valves

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Facilities installed
Station Piping and Instrumentation as-built drawings
Details of the major mechanical equipments
installed
Details of the various electrical equipments and
panels
Details of various instrumentation systems
Details of communication systems
Details of various Fire-fighting equipments and
systems

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Commissioning prerequisites

Hydrotest and caliper pigging reports of the Mainline

Hydrotest reports of the station piping
Reports of No-load trial runs of various equipments
Statutory clearances like CCE, OISD, CEA, SPCB
Readiness of Oil Water Separator

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Operation Philosophy

Operation Guidelines of major equipments

Operation Guidelines for the Pipelines
Product Batch-length, inter-face management
Operation formats, tables, dip tape & memo book,
Oil/Water finding pastes, sampling jar, hydrometer,
thermometer, sampling bottles, stock registers, cotton
wastes, essential spares and explosive meter
Deployment of Operation Personnel and Line
Patrolmen

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Commissioning procedures
Deployment of dedicated commissioning team
Setting up of Commissioning Control Room with
necessary disaster management & exigency plan
Pre-commissioning checks & activity/action plan with
corresponding responsibilities
Action Plan of commissioning of Station equipments
and Mainline
Procedures for Water Pumping & Product pumping in
the Mainline
Procedure for back pressure control, air venting and
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Commissioning tools & materials

Necessary Pigs for the mainline

Necessary spare gaskets & stud bolts
Temporary spools & blinds
Pressure gauges, calipers & meters
Spare O ring for scrapper barrel
Tools and tackles, greasing gun
Portable get-set, pneumatic pump, de-watering pump,
empty drums, Walkie-talkie sets
Jeeps & tractor with trailer
Portable flood lights, bulbs, pumps, lamps, HRC fuses
Lube oil, grease, fuel, air, water
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Safety requirements & precautions

CO2 & DCP extinguishers
Universal/fog/water curtain/jet nozzles
Foam Branch Pipes and jet nozzles with branch pipe
Personal protective equipments
Stretcher, fire proximity suits, water jell blanket
Fire Hoses & sand scoops
Breathing apparatus with oxygen cylinders, resuscitator
First Aid Box, Hand & electrical operated sirens
Red & green flags, wind socks, safety torch
AFFF Compound & Sand buckets
Scheme for safe disposal of commissioning water
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Thank You
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