Technical Support Documents

Lessons Learned from Natural Gas STAR Partners

Using Hot Taps for In Service Pipeline Connections

Executive Summary

Natural gas transmission and distribution companies often need to make new connections
between pipelines to expand or modify their existing system. Historically, this has necessitated
shutting down a portion of the system and purging the gas to the atmosphere to ensure a safe
connection. This procedure, referred to as a shutdown interconnect, results in methane
emissions, loss of product and sales, customer inconvenience, and costs associated with
evacuating the existing piping system.

Hot tapping is an alternative procedure that makes a new pipeline connection while the pipeline
remains in service, flowing natural gas un-der pressure. The hot tap procedure involves attaching
a branch connection and valve on the outside of an operating pipeline, and then cutting out the
pipeline wall within the branch and removing the wall section through the valve. Hot tapping
avoids product loss, methane emissions and disruption of service to customers.

While hot tapping is not a new practice, recent design improvements have reduced the
complications and uncertainty operators may have experienced in the past. Several Natural Gas
STAR Transmission and Distribution Partners report using hot tap procedures regularly-small
jobs are performed almost daily while larger taps (greater than 12 inches) are made two or three
times per year.

By performing hot taps, natural gas star partners have achieved methane emissions
reductions and increased revenues, while avoiding transmission and distribution service
interruptions. Gas savings are generally sufficient to justify making all new connections
to operating lines by hot tapping. The payback period for utilizing hot tapping is often
immediate.

Method for Volume of Value of Other Capital Other Payback

Reducing Natural Natural Savings Cost Cost 4 (months)
Gas Loss Gas Gas ($) ($/yr) ($/yr)
Savings Savings
(Mcf/yr) ($/yr)
Hot Tap 24,400 73,320 2 6,840 3 36,200 43,000 12
Connection 1
1 Annual savings and costs are based on an average 320 hot taps (of various sizes) per year).
2 Assumes a natural gas price of $3.00/Mcf.
3 Other savings shown are for inert gas. See Appendix - additional shutdown expenditures. These expenditures
are avoided when operators perform hot taps instead of shutdowns.
4 Other cost includes the O&M and contract services cost.

Technology Background

In natural gas transmission and distribution systems, it is often necessary to relocate or expand
existing pipelines, install new valves or repair old ones, install new laterals, perform maintenance,
or access lines during emergencies. Historically, it has been common practice to shut down the
portion of the system during the alteration, vent the gas within the isolated segment, and purge
the pipeline with inert gas to ensure a safe connection.

The procedure for performing the shutdown interconnect differs slightly depending on system
pressure. In high-pressure systems, the sur-rounding valves are closed to isolate the pipeline
segment and additional stoppers are placed next to the valves to prevent natural gas leakage and
improve the safety conditions at the interconnection site. In a low-pressure system, the length of
pipeline that is shutdown is typically much shorter. Rather than shutting the surrounding valves,
stoppers are used to isolate the portion of the pipeline directly around the area of the tap. In both
cases, the gas in the isolated pipeline segment is vented and the line is purged.

The impacts associated with performing a shutdown interconnect are both economic and
environmental. Gas vented from the pipeline segment represents a loss of product and an
increase in methane emissions. In addition, removing a pipeline segment from service may cause
gas service interruptions to customers. For example, a shutdown connection on a steel line can
require one to three or more days of pipeline outage and possible interruption of natural gas
shipments in addition to the release of methane to the atmosphere.

Hot tapping is an alternative technique that allows the connection to be made without shutting
down the system and venting gas to the at-mosphere. Hot tapping is also referred to as line
tapping, pressure tapping, pressure cutting and side cutting. The process involves making branch
connections and cutting holes into an operating pipeline without interruption of gas flow, and with
no release or loss of product. Hot taps permit new tie-ins to existing systems, the insertion of
devices into the flow stream, permanent or temporary bypasses, and are the preparatory stage
for line plugging with inflatable, temporary balloon plugs.

Hot tapping equipment is available for almost any pipeline size, pipe material and pressure rating
found in transmission and distribution sys-tems. The primary equipment for a typical hot tap
application includes a drilling machine, a branch fitting and a valve. Hot tapping equipment is
described below and shown in Exhibit 1.

 Drilling machine. The drilling machine generally consists of a mechanically driven

telescoping boring bar that controls a cutting tool. The cutting tool is used to bore a pilot
hole into the pipeline wall in order to center a hole saw that cuts out the "coupon," or
curved section of pipeline wall.

 Fitting. Connection to the existing pipe is made within a fitting, which can be a simple
welded nipple for small (e.g., one inch) connection to a larger pipeline, or a full-
encirclement split tee for extra support when the branch is the same size as the parent
pipeline. The tee wraps completely around the pipeline, and when welded, provides
mechanical reinforcement of the branch and carrier pipe.
 Valve. The valve on a hot tap connection can be either a block valve or a control
valve for the new connection, and must allow the coupon (section of pipeline wall
cut out by the drilling machine) to be removed after the cutting operation. Suitable
valves include a ball or gate valve, but not a plug or butterfly valve.

Exhibit 1: Schematic of Hot Tapping Machine with Profile

Exhibit 2 provides a general schematic of a hot tapping procedure. The basic steps to perform a
hot tap are:

1. Connect the fitting on the existing pipeline by welding (steel), bolting (cast iron), or
bonding (plastic) and install the valve.

2. Install the hot tap machine through the permanent valve.

3. Perform the hot tap by cutting the coupon from the pipeline through the open valve. A
special device retains the "coupon" for removal after the hot tap operation. Withdraw the
coupon through the valve and close the valve.
4. Remove the tapping machine and add the branch pipeline. Purge oxygen, open
valve, and the new connection is put into service.

Exhibit 2: Schematic of Hot Tapping Procedure

Hot taps may be vertical, horizontal, or at any angle around the pipe as long as there is sufficient
room to install the valve, fitting, and tapping machine. Current technology allows for taps to be
made on all types of pipeline pressures, diameters, and compositions, even older pipes merging
with new. New, lightweight tapping machines are also available that allow a hot tap to be
performed by a single operator, without additional blocking or bracing.

Safety manuals and procedural outlines are available from the American Petroleum Institute
(API), American Society of Mechanical Engineers (ASME), and other organizations for welding on
in-service pipelines for all sizes, flow rates, and locations. These manuals provide information on
what to consider during welding, including burn-through prevention, flow in lines, metal thickness,
fittings, post weld heat treatment, metal temperature, hot tap connection and welding design, and
piping and equipment contents.

Vendor manuals and equipment catalogues are also good sources for determining which size and
type of equipment is most appropriate. Several vendors have published comprehensive outlines
and guides for performing hot tap procedures, including information on tapping on various
materials, job-site evaluation and preparation, selection and installation of fittings and other
equipment, and safety precautions. Most importantly, because this is a hazardous procedure,
each potential hot tap must be evaluated on a case-by-case basis and a detailed, written
procedure should be prepared or reviewed before starting each job to ensure that all steps are
taken properly and safely.

Economic and Environmental Benefits

Key economic and environmental benefits of employing hot tapping procedures instead of
shutdown connections include:

 Continuous system operation - shutdown and service interruptions are avoided;

 No gas released to the atmosphere;

 Avoided cutting, realignment and re-welding of pipeline sections;
  Reduction of costs associated with planning and coordination - meetings, schedules,
paperwork; lost production and direct manpower;
 Increased worker safety; and
 Elimination of obligations to notify customers of gas outages.

By ensuring that best practices are followed when performing a hot tap, the time required for the
procedure, as well as the potential for failure, is reduced.

Decision Process

Operators can assess the economics of performing a hot tap as an alternative to a

shutdown connection by following the five steps below:

Five Steps for Assessing Hot Tap Economics:

1. Determine physical conditions of existing line and connection (temperature, pressure, wall
thickness, and diameter);
2. Calculate costs of performing a shutdown interconnect;
3. Calculate the cost of hot tap procedure performed by company or contractor;
4. Evaluate the gas savings benefits of hot tapping; and
5. Compare the options to determine the economics of hot tapping.

Step 1: Determine physical conditions of the existing line and connection. In preparation for
a hot-tap project, operators will need to determine the maximum operating pressure (during the
hot tap), type of pipe material (steel, cast iron, plastic), and condition of the parent pipe-line
(internal/external corrosion, wall thickness) to assure a safe project. Other conditions to evaluate
include the location of nearby valves for emergency isolation in the event of an accident, the
desired tap diameter, working space around the connection, location of other pipeline welds, and
imperfections or obstructions. Operators should also determine if the line is "looped," as many
gas transmission companies avoid operational disruptions by shifting the load to a parallel line. It
is advisable to develop and follow a written plan to assure full and proper evaluation of a future
connection.

Step 2: Calculate costs of performing a shutdown interconnect. Operators should reference

historical data to determine all costs of performing shutdown interconnects. The cost estimate
should include direct costs such as material and equipment, welding requirements, quality
control, blowdown and purge costs, labor, and scheduling ex-penses. For the purposes of this
analysis, material and labor costs for cutting out the line section and welding in a tee connection
in the shutdown method are assumed to be comparable to the cost of welding on the fitting and
performing the hot tap when the branch connection is the same size as the pipeline. The costs of
the gas lost through venting and inert gas purging are unique to the shutdown interconnect.
Additional indirect expenses or "hidden" costs may include the cost of shut off valves, advertising
if service is to be shutdown, re-lighting of customer services, and excavating for stoppers and
purge connections.

The formulas used to determine the cost of a shutdown interconnect are shown in Exhibit
3. For these calculations, low pressure is defined as less than 2 psig.

Exhibit 3: Calculating the cost of Shutdown Interconnect

Given:
 D = inside diameter of pipeline (inches)
T = taphole diameter (inches) - for low pressure shutdown with tapholes for stoppers
L = length of pipeline between tapholes (feet) - for high pressure shutdown
Ppgas = Current purge gas market price ($/Mcf) - assumed $4/Mcf
Pg = Current gas market price ($/Mcf) - assumed $3/Mcf
Ce = cost of extra excavation, use company records ($)
Cp = cost of purge connections and excavation, see Appendix ($)
Cf = cost of fittings, see Appendix ($)
Cs = cost of hidden shutdown expenditures, see Appendix ($)

  Time Taphole is open = from prior experience (minutes)

Calculate Direct Costs:

  1. Calculate A = area of pipeline (ft2) = 3.14 * D2 / 4 / 144 in2/ft2 = D2/183

 
2. Calculate Vp = volume of pipeline (Mcf) = (A * L) / 1000 (Mcf/ft3)
3. Calculate Vpgas = volume of purge gas = Vp * 2.2(shutdown + restore + 20% wasted)
4. Calculate Cpgas = cost of nitrogen purge gas ($) = Vpgas * Ppgas
*5. Calculate Vg = volume of gas lost in high pressure systems: Vg (Mcf) = D2* P * (L/1,000) *
0.372) / 1,000 in low pressure systems: Vg (Mcf) = T2 * P * No. of Tapholes * Time taphole is
open /60(min/hr)
6. Calculate Cg = cost of gas lost ($) = Vg * Pg
Calculate Indirect Costs:

  1. Calculate Ce = cost of extra excavation for tie-in ($)

2. Calculate Cp = cost of purge connections ($)
3. Calculate Cs = cost of hidden shutdown expenditures ($)
4. Calculate Ci = indirect costs ($) = Ce + Cp + Cs
Calculate Total Costs:

  Calculate Ctotal = total cost ($) = Cg + Cpgas + Ci

* Source: Pipeline Rules of Thumb, p270 and p278

For comparative purposes, calculating the cost of a shutdown interconnect should take
into consideration a multiple-project scenario. This multiple-project perspective allows
for a more complete comparative cost analysis given the up-front capital costs of owning
and operating a hot tap machine and the need to perform several interconnections
throughout a given year. Exhibit 4 illustrates how the cost calculations in Exhibit 3 can be
applied in a multiple connection scenario. The hypothetical situation presented includes
several projects on pipelines of various sizes and pressures. Cost calculations, however,
are only provided for the 4 inch pipeline scenario and only cover direct costs.

Exhibit 4: Hypothetical Scenario and Example Calculation of Direct

Costs for a Shutdown Interconnect
 Given:
A pipeline company requires numerous shutdown or hot tap connections as follows:

  Pipeline Diamters, Inches 4 8 10 18

Pipeline Pressures, psig 350 100 1,000 200
Pipeline Lengths1, miles 2 1 3 2
Annual Taps2, number 250 30 25 15
(1) Calculate: Vg = Volume of Natural Gas Lost
Vg (Mcf) = (D2 * P * (L/1,000) * 0.372) / 1,00
Vg = (42 * 350 * (2 * 5,280/1,000) * 0.372) / 1,000
Vg = 22 Mcf
(2) Calculate: Vpgas = Volume of Purge Gas 3
Vpgas (Mcf) = ((D2 / 183 * L) / 1,000) * 2.2
Vpgas = ((42 / 183 * 2 * 5,280) / 1,000) * 2.2
Vpgas = 2 Mcf
(3) Calculate: Value of Gas Lost by Shutdown Interconnects
Cost = Cg + Cpgas + Vg * Pg + Vpgas * Ppgas
Cost = (22 Mcf * $3/Mcf) + (2 Mcf * $4/Mcf)
Cost = $74 for each of the 4 inch pipeline shutdown interconnects
1 Isolation length between block valves or stoppers
2 Scenario is based on partner and vendor information
3 Inert gas assumed to be nitrogen

Again, individual operators will need to reference company records to determine the exact
procedures and factors to use when performing shutdown interconnects. The procedures
described above are general guidelines for preliminary economic assessment and may differ from
company to company. Additional factors that are company specific include gas leakage past the
pipeline valves on both ends of the shutdown, number of stoppers, tap holes for venting and
purging, and type of purge gas. Leakage is particularly important as large pipeline block valves
may leak significant volumes of gas because they are used infrequently and the valve seat may
accumulate debris that inhibits a tight seal. The volume of leakage is highly variable, dependent
on valve type, age, pipeline pressure and service (dry gas causes much less corrosion and
accumulation of debris than wet gas). If a partner's individual evaluation following this lesson
learned results in marginal economic justification, then company experience on pipeline valve
leakage should be factored in to improve the economics.

Step 3: Calculate the cost of hot tap procedure performed by company or contractor. When
comparing the up-front costs of hot tapping with shutdown interconnects the only significant
difference is the cost of the hot tap equipment. The tee fitting or full encirclement sleeve, and the
valve have nearly the same cost for either method when the branch is essentially the same size
as the pipeline (information on fitting types and costs is shown in the Appendix). The cost of
welding a full encirclement sleeve is nearly the same as the cost of welding a tee fitting in a line.
Labor cost for cold cutting the pipeline and hot-tap cutting out a coupon are sufficiently close for
this type of feasibility evaluation. Maintenance costs apply only to hot tap equipment, such as drill
sharpening and other equipment care and replacement.
Tapping machines come in several sizes, and a single machine can perform hot taps from 3 to 12
inches. Less expensive machines can be purchased to perform small (e.g., one to 3 inch) taps. In
general, capital costs for purchasing the hot tap machines typically used by gas companies for
the most common sized connections range from $13,200 to $23,000.

Equipment cost is normally a one-time capital expenditure and can be depreciated over the life of
the equipment, typically 15 to 20 years. Each company, however, should calculate the
depreciation in the same manner used for other equipment purchases (e.g., amortized, over a
fixed period of time, etc.). This should be considered in conjunction with how often the machine
will be used in the future. To make this determination, operators should look at company records
to determine the number of times similar connections have been performed.

Typically, a company that performs several hot taps a year will find it economical to own the
equipment, especially in sizes up to 12 inches, and to maintain trained personnel to perform the
service. These jobs are usually simpler and require less specialized training. For larger and less
frequent hot taps a company may consider it more cost effective to hire a contractor who will
supply the equipment and trained personnel. Most hot tap vendors will supply all necessary
tapping equipment, including the drilling machine, fittings, valves, cutters, and repair services.
The majority of vendors also offer contract services for larger or infrequent jobs, or will rent out
the tapping equipment. The costs of using an outside contractor can be reduced by supplying
support services, such as excavation, welding, and cranes.

Other factors, such as the line material and thickness, and system pressure and temperature,
should also be considered when determining the alternatives of purchasing hot tapping
equipment or hiring contractors. A company should evaluate how often the tapping equipment
would be used and if they would realize savings by owning and maintaining the equipment and
training operators.

Exhibit 5 presents ranges of hot tapping costs for both equipment purchase and
contracted services. The cost ranges shown include all materials; additional expenses will
result from labor and maintenance expenditures, as discussed above. Vendors state that
the operations and maintenance (O&M) costs can vary greatly, depending on the number
of taps performed and equipment and procedural care. Ranges are shown because
variables, such as equipment size, tap size, and other special conditions, make
standardized prices inaccurate.

Exhibit 5: Hot Tap Expenses

Capital Cost ($) Contracting Equipment O&M
Connection
Machine Service Cost Cost
Size Material
1 ($) ($/yr)

13,200 -
Small Taps (<12") - - 500 - 5,000
23,000
2,000 -
Large Taps (>12") - 1,000 - 4,000 -
9,120
1 Hot tap machines can last from 5 to 40 years. A company may perform as many as 400 small taps per year.
Note: Cost information provided by Hot Tap manufacturers and contractors. Prices are only provided for the most
economic options.
Exhibit 6 shows the equipment, O&M, and contractor services cost to perform the 320
taps per year in the hypothetical scenario. The as-sumption is made that the 4", 8", and
10" taps (a total of 295 taps) would be performed by the company. Because few taps
equal to or larger than 18 inches are performed each year, these taps (a total of 15 taps)
would be contracted to vendors. The equipment cost includes the purchase cost of two
small (<12") tap machines. For the purpose of this lessons learned, the average value of
the purchase, O&M, and contracting service costs listed in Exhibit 5 are used to complete
the cost analysis for the hypothetical scenario. Based on these assumptions the total
equipment cost is calculated at $36,200, the O&M cost at $5,500 and the contract
services cost at $37,500.

Exhibit 6: Estimated Annual Hot Tap Costs for the Hypothetical Scenario
Given:
Equipment Cost per machine = $18,100 1
Operations and Maintenance (O&M) Cost per Machine = $2,750 1

  Contract Services cost per tap = $2,500 1

Number of hot tap machines = 2
Number of contracted taps = 15 (all taps 12 inches and larger)
Calculate:
Total Equipment Cost = $18,000 * 2 = $36,200

  Total O&M Cost = $2,750 * 2 = $5,500

Contract Services Cost = $2,500 * 15 = $37,500
1 Average costs from ranges in Exhibit 5

Exhibit 7 presents the natural gas

Step 4: Evaluate the gas savings benefits of hot tapping.
and purge gas savings associated with hot tapping on small and large diameter high-
pressure pipelines in the hypothetical scenario of 320 taps per year. The values are
calculated using the equations in exhibit 3, multiplied by the number of annual
connections. Gas losses associated with shutdown interconnects are the primary savings
when these connections are made by hot tapping.

Exhibit 7: Estimated Annual Gas Savings for the Hypothetical Scenario

Tap Scenario 1 Natural Gas Purge Gas Total Gas Savings 3
Savings Savings 2
Pipelines Annual Per Tap Annual Per Annual $
Taps Mcf Mcf Tap Mcf
Number Mcf
4" pipeline 250 22 5,500 2 500 18,500
350 psig, 2 mile line
8" pipeline 30 13 390 4 120 1,650
100 psig, 1 mile line
 10" pipeline 25 589 14,725 19 475 46,075
1,000 psig, 3 mile line
18" pipeline 15 255 3,825 41 615 13,935
200 psig, 2 mile line
Total Annual 320   24,440   1,710 80,160

1 The sizes and number of taps from scenario given in Exhibit 4.

2 Example for 4-inch pipe interconnect shown in Exhibit 4.
3 Natural gas valued as $3 per Mcf, inert gas (nitrogen) valued at $4 per Mcf.

Step 5: Compare the options and determine the economics of hot tapping. The economic
analysis shown in Exhibit 8 compares the significant cost and benefit differences between hot
tapping and shutdown interconnections for the hypothetical scenario of 320 taps per year. The
significant costs are the purchase, operation and maintenance of hot tapping equipment and/or
contracting for hot tapping services. In this scenario, both costs are included: the purchase of two
hot tapping machines for $36,200 for the smaller sizes and contracting the 15 large taps at
$37,500 per year. The purchased hot tap machines are operated and maintained at $5,500 per
year. All these costs are calculated in Exhibit 6. Many expenses, including the cost of fittings,
valves and basic labor, are assumed to be similar in both hot tap and shutdown procedures, and
therefore can be excluded in the comparative analysis. A more complete analysis can be done by
evaluating and in-cluding the company specific "hidden" costs per Exhibit 3.

The significant benefit differences are the reduction in natural gas loss by eliminating
venting and the inert purge gas used in the shutdown interconnect procedure. As
summarized in Exhibit 7, annual natural gas savings total 24,440 Mcf for the hypothetical
hot tapping scenario, worth $73,320 per year at $3 per Mcf gas price. The annual inert
gas savings of 1,710 Mcf is worth $6,840 per year at $4 per Mcf of nitrogen, for a total
annual benefit of $80,160. Additional benefits from avoiding gas leakage through
pipeline block valves during shutdown interconnect would further improve the hot
tapping economics.

Exhibit 8: Economic Analysis of Hot Tap versus Shutdown

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Capital Cost, $ (36,200) 0 0 0 0 0
Contract Service Cost, $ 0 (37,500) (37,500) (37,500) (37,500) (37,500)
O&M Cost. $ 0 (5,500) (5,500) (5,500) (5,500) (5,500)
Total Cost. $ (36,200) (43,000) (43,000) (43,000) (43,000) (43,000)

Natural Gas Savings. ($)   73,320 73,320 73,320 73,320 73,320

Inert Gas Savings, ($)   6,840 6,840 6,840 6,840 6,840

Net Benefit $ (36,200) 37,160 37,160 37,160 37,160 37,160

Payback 12
IRR 113%
NPV1 $104,665
1 Net Present Value (NPV) based on 10% discount rate for 5 years.
In conclusion, hot tapping has been found to be more cost effective than shutdown
interconnects. Even when the system must be taken out of service, hot tapping presents
opportunities for both time and cost savings. While hot tapping is a practice that has
historically been per-formed by companies for reasons other than the gas savings,
consideration of the methane reduction benefits can often serve to justify hot tapping over
the shutdown interconnect procedure in a variety of circumstances.

One Vendor's Experience

A vendor reports that, for a gas transmission client, one day of gas service in a 36" natural gas
pipeline operating at 1,000 psig is worth $365,000 in gross revenue. It would take approximately 4
days to perform a shut down connection at a cost of $1.5 million, not including the cost of venting the
pipeline contents in order to perform the tie-in with shutdown. A hot tap connections would eliminate
this loss of revenue by enabling uninterrupted service.

Lessons Learned

Pipelines typically undergo several transformations each year. Performing hot taps to make these
connections and installations can reduce methane emissions from pipelines and increase savings
and efficiency. The following are several lessons learned offered by partners and hot tap vendors:

 Hot tapping has been performed by transmission and distribution companies for decades.
By evaluating the gas savings associated with this practice, hot tapping can be used in
many situations where it would not ordinarily have been used.

 The site for the branch weld must be free of general corrosion, stress corrosion cracking,
and laminations.
 Hot tap should not be performed immediately upstream of rotating equipment or
automatic control valves, unless such equipment is pro-tected from the cuttings by filters
or traps.
 For tapping on steel pipes, fittings generally consist of a welded branch connection.
However, when tapping into cast iron, asbestos cement, or concrete, the fitting cannot be
welded onto the existing header. Alternative fitting attachment techniques, such as a split
cast iron compression sleeve or a mechanical joint saddle, must be employed.
 For plastic systems, the operator should ensure that the hot tapping fit-tings are
compatible with the type of plastic pipe in the system and appropriate joining methods are
used. Vendors can supply suitable fittings and tools for almost every kind of plastic
system.
 If hot tapping has not been performed in the past, a hot tapping procedure should be
developed and personnel trained. Be sure to include instructions concerning possible
burn through or hydrogen cracking during welding.
 All equipment must meet minimum industry and Federal standards for pressure,
temperature, and operating requirements.
 If conditions of temperature, pressure, pipe composition or tap diameter are encountered
that are unusual for your system, be sure to consult the manufacturer of the tapping
equipment or fittings.
 Industry and Federal codes and standards should be consulted for more specific
specifications (e.g., ASME B31.8, API 2201, API 1104, API D12750, 49CRD192).

Sources Consulted

Paul LaShoto, Bay State Gas, (508) 836-7240

Tom Davaney, Con Edison, (718) 579-1237

Anthony Hranicka, Con Edison, (212) 466-2758

William A. Bruce, Edison Welding Institute, (614) 688-5500

Don Petolick, Gary Vanderhye, Hydra-Stop, Inc., (708) 389-5111

Vern Chila, International Piping Services Company, (609) 423-5600

Sharlye Smith, Mueller Co., (800) 798-3131 (ext. 7515)

James Chaput, Michigan Gas, (313) 256-5303

Dal Vandervort, T.D. Williamson, Inc., (630) 820-2500

Mike McMicken, Brian Boucher, Team Industrial Services, Inc., (804) 743-1597

Erick Rodgers, Topaz Inc., (713) 461-1000

David Burns, TransCanada Hot Taps, (403) 261-7401

Deanna Doig, TransCanada Alberta System, TransCanada Pipelines, (403) 541-4907

Shrikanth Venugopal, TransCanada Transmission, (403) 290-7343

Paul M. Gunning, US EPA Natural Gas STAR Program, (202) 564-9736

End Notes

49CFR192, Part 192, Subpart D, "Transportation of Natural and other Gas by Pipeline: Minimum
Federal Safety Standards; Design of Pipeline Components".

American Petroleum Institute, Procedures for Welding or Hot Tapping on Equipment in Service,
API Recommended Practice 2201, Third and Fourth Editions, October 1985 and September
1995.

American Petroleum Institute, Welding of Pipelines and Related Facilities, Publication No. 1104,
19th Edition, September 1999.

American Society of Mechanical Engineers (ASME), ASME Code for Pressure Piping, B3I, ASME
B31.8-1995 Edition.

Hydra-Stop, Inc., A Pressure Installation Primer: Basic Information and Procedures for Line
Tapping and Linestopping.

McElligott, John A., John Delanty, and Burke Delanty, "Use of Hot Taps for Gas Pipelines Can be
Expanded," Oil and Gas Journal, 11/30/98.

Pipeline Rules of Thumb Handbook, E.W. McAllister, Editor; Fourth Edition, Gulf Publishing
Company.
Appendix: Supplemental Information

Valves. Valves used in hot tapping are typically full opening ball or wedge gate valves. Pipe
suppliers can usually supply prices for valves and fittings, if provided with the scenario
information including pipe size, outlet size, and line content, pressure and material.

Tees/Fittings. There are several different types of mechanical and welded fittings
applicable to hot tapping including weldolet, threadolet, scarfed nipple, tapping tee or full
encirclement saddle. The most common tapping fitting is a split cast iron sleeve. Fittings
are typically priced by size, flange (ANSI/pressure) rating and any special characteristics.
Typical vendor fitting costs are presented below.

TD Williamson - Full Split Tee Costs ($)

Size (pipeline x outlet)  
16" x 16" $2,000
18" x 18" $3,000
20" x 20" $5,000
24" x 24" $6,000
30" x 30" $9,000
40" x 16" $2,500
60" x 16" $2,500
Price estimates are for a 300# rating.
Fittings are also available for 150#, 400#, 600#, 900#, and 1,500# flange ratings and sizes 1" x 1" to 96" x 96".

Topaz - Tapping Tee Costs ($)

150#
Size 300# Flange 600# Flange
Flange
(pipeline x outlet) Rating Rating
Rating
2" x 2" $352 $364 $403
4" x 4" $370 $390 $438
12" x 12" $1,273 $1,356 $1,484
20" x 20" $3,332 $3,526 $3,921
12" x 4" $841 $1,142 $940
20" x 8" $2,411 $2,493 $2,606
Fittings are available for other sizes.

Topaz - Full Encirclement Saddle Costs ($)

Size
Part 1 Part 2
(pipeline x outlet)
2" x 2" $204 $170
 4" x 4" $204 $170
12" x 12" $580 $485
20" x 20" N/A $1,175
12" x 4" $534 $445
20" x 8" $1,172 $968
40" x 16" N/A $3,143
Fittings are available for other sizes.

One of the possible hidden costs of a shutdown connection, if gas cannot be supplied from
alternate sources, may be the cost of relighting customers. This process would require two visits,
one to shut down and the second to turn on and relight. Typically, a visit to a residential customer
would take 15 to 30 minutes, and a visit to a commercial or industrial customer would take
approximately 1 hour. According to the Bureau of Labor Statistics , an employee would be paid
approximately $9.75 per hour for this work.

Cost of Relighting = [(No. of residential customers) * (0.38 hrs)]

+ [(No. of commercial/industrial customers) * (1 hr)]
* $9.75/hr

It may not be possible to perform a shutdown connection during optimal hours. Scheduling and
additional planning may have to be completed to arrange the construction and additional
excavation necessary to shut down the line, pay employees overtime, and advertise the
shutdown to customers. These costs are variable and will depend on the company and internal
factors.

Other additional costs such as scheduling, labor, overtime, advertising, etc. exist, but are unique
to each company, and beyond the scope of this study. These costs can be estimated based on
past shutdown experience. An operator should examine past records to determine what, if any,
costs are being avoided by performing a hot tap versus a shutdown connection.