The proposed project pipeline system consists of two major segments:

Delivery Pipeline
A 42-inch diameter pipeline will be installed to connect the Marine Terminal to the Crude Storage Terminals located on Pier 400 and Terminal Island. This large diameter line will be installed approximately 3-4 feet below grade and will generally follow an existing utility right-of-way, paralleling an existing 30“ water line along Navy Way between the facilities. The line has the capacity to transport approximate 100,000 barrels of crude oil per hour away from the Marine Berth.

Distribution Pipelines
The Crude Terminals will be connected to several local refineries, and other potential customers through new and existing 24 and 36-inch diameter pipelines. Two new 36“ pipelines will exit the Crude Terminals and connect to an existing 36“ pipeline (former GATX / KMEP pipeline). The southern portion of the line will terminate at a nearby terminal. The northern portion terminates on Mormon Island. From this point, a new 24 and 36-inch diameter pipelines will be installed, roughly following POLA property and Alameda Street to the Valero Refinery. Connections will be provided for ConocoPhillips and other distribution systems. These lines have the capacity to transport approximate 40,000 barrels of crude oil per hour away from the Crude Terminal sites.

I. Pipeline Design
The pipeline will be designed and constructed in accordance with all current design standards

II. Pipeline Design
The pipeline will be designed and constructed in accordance all current design standards including:

• Code of Federal Regulations: Title 49, Part 195. Transportation of Hazardous Liquids by Pipeline. (DOT-195)
• ASME/ANSI B31.4 Pipeline Transportation Systems for Liquid Hydrocarbons and Other Liquids
• API 1104 Welding of Pipeline and Related Facilities, 19th Edition

IV. Coating and Cathodic Protection Systems
The primary protection from corrosion for pipelines will be provided by industrial grade coatings. The project currently proposes to coat all external pipe with fusion bonded powdered epoxy or equal coating.

The Cathodic Protection (CP) systems will be designed and installed to protect all below grade steel piping and structures installed by the project as a secondary means to protect against corrosion. Design of all CP systems shall be in accordance with the latest NACE design standards and Pacific’s engineering standards.

Basic components of the CP system will consist of rectifiers which convert AC to DC power, deep well ground beds and/or buried anode beds, test stations along the pipelines and within the terminal and tank farms, electrical insulators at above grade connections and cathodic protection bonds to existing nearby steel pipelines and other substructures if determine necessary following steady state potential surveys. The performance of the system will be monitored on a regular basis. Any problems will be corrected immediately.

V. Pipeline Integrity Assessment
The pipelines will be designed to run all available internal inspection tools (Also known as Smart Pigs).

Smart Pigs are inspection vehicles that move inside a pipe line pushed along by the flowing material. They have been in commercial use since 1965, and can accurately detect, size, and locate corrosion or any other anomalies in pipelines. Smart Pigs use different technologies to locate problems along the pipelines, including Magnetic Flux Leakage (MFL) and Ultrasonics (UT). The Global Positioning System (GPS) technology can also be incorporated in the Smart Pig to obtain the exact location of any problem in the pipe or to map the pipe itself.

After installation of the pipelines for the Pier 400 project, internal inspection tools will be run to establish the baseline parameters for each pipeline system. This baseline data will be used to established trends and comparisons from data gathered by future internal inspections.

VI. Leak Detection Systems
A leak detection system will be installed for all major pipelines systems. The system will automatically alert the operator when a leak occurs so that appropriate actions can be taken to minimize the spill volume and duration. The system is designed to protect the public and the environment from the consequences of a pipeline failure.

The project will utilize a Computational Pipeline Monitoring (CPM) system to monitor the pipelines. This method employs numerous monitored variables and a sophisticated computer model to identify upsets or potential leaks. The input to the computer will include operating parameters for temperature, pressure, flow, and density, and include equipment input such as pump start/stop and valve open/close signals. The output from all of the sensors will be compared against a baseline model for values that differ from the modeled case indicating a potential leak. Operational transients such as pump starts, line fills, valve closures, etc., will be modeled as well, so that this automatic leak detection system can continue to work during operational changes that occur in the normal day-to-day operation of the pipeline system.

In addition to this electronic leak detection system, many other methods of leak detection, including aerial and land-based surveillance, will also employed.

VII. Pipeline Construction
Pipeline construction will be accomplished using a construction spread. The construction spread is a combination of manpower and equipment assembled to perform ditching, hauling spoil, stringing pipe along the route, welding, pipe coating welds, backfilling the ditch and restoring the ROW.

Typically a trench is excavated to a depth where the pipe will have 3 to 5 feet of cover. Ditch depth can vary due to pipe size, existing substructures and other special conditions. The trench will be excavated using backhoes with some hand digging to locate buried utilities.

Dump trucks will be used to haul trench soils off site for disposal. Typically, there will be 200 to 600 feet of open trench during construction.

Pipe will be transported to the construction site by truck from storage areas. The pipe will come in 45-65 foot lengths. The pipe will be removed from the trucks using cranes. The pipe will be strung end to end in the trench.

Where required, the pipe will be bent by a portable bending machine to fit the horizontal and vertical contours of the ditch. Where field bending is not practical, manufactured bends will be used.

A line up crew will fit up the pipe for welding using internal and external lineup clamps. Welding crews will weld the pipe. Due to the size of pipe on this project, multiple crews will be required for each weld. Each crew has a welding rig and consists of a welder and helper.

After radiographic inspection, the girth weld is then coated with a heat shrinkable sleeve or a primer and tape. The entire length of pipe is holiday tested and any damage to the coating is repaired.

Typically, in city streets the trench is backfilled with sand slurry to a level 1 foot over the top of pipe. From that level to the bottom of asphalt one sack cement slurry is used.