Pee Dee Empty Oil Storage Tank at



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Mechanical Integrity Report for the Pee Dee Empty Oil Storage Tank at 208 North Palmetto Boulevard Clemson, South Carolina 29631 Inspection: 10 October 2012 Prepared by: George E. Matthews, E.I.T. Senior Consultant Reviewed by: Jeremy M. Orr, P.E., C.W.I. Principal Engineer - Manager Purchase Order Number: CU00134445 ATS Job Number: 187436 Professional Engineers and Scientists Design Consulting Testing and Inspection Members in AAFS, ACS, ANSI, ASM, ASME, ASNT, ASQ, ASTM, AWS, BOMA, FSCT, IAAI, IWCA, NACE, NCSL, NFPA, SAFS, TAPPI GEORGIA SOCIETY OF PROFESSIONAL ENGINEERS, NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS In the state of North Carolina, Engineering Services will be provided by ATS Engineering, PLLC or a properly licensed subcontractor In the state of New York, Engineering Services will be provided by Neville W. Sachs, P.E., PLLC or a properly licensed subcontractor Page 1 of 10

Table of Contents Table of Contents General Information, Background, Equipment Orientation and Access Page 3 Present Condition and Analysis Page 4 Action Items Page 6 Future Inspections, Personnel Qualifications and Reference Industry Codes and Standards Page 7 Photographs Page 8 Appendix A: NDE Report Appendix B: Calculations Summary Page 2 of 10

General Information, Background, Equipment Orientation and Access Design Pressure Unknown Design Temperature Unknown Operating Pressure Atmospheric Operating Temperature Ambient Contents Oil Specific Gravity 1.0 (used for calculations) Shell Height / Length 5 feet Diameter 3 feet Manufacturer Unknown Year Constructed Unknown Serial Number Not applicable UL Number Unknown Material Unknown Carbon Steel Previous Inspection None Drawing(s) None NDE Performed by Jesse Showalter (VT) Stan Sullivan (UTT) Overall View Background This report contains the results of the inspection, analysis and action items regarding the Empty Oil Storage Tank. The inspection included an external visual inspection and applicable NDE to the accessible portions of the tank. Equipment Orientation The zero references as discussed in this report were as follows: The tank was oriented beginning with 0 at the top of the shell as viewed from the east head and progressing to 360 in a counter-clockwise direction (refer to the roll-out in Appendix A). All nozzles and manways were individually oriented with 0 at the top of the individual nozzle and manway necks (towards the top of the tank) and progressed to 360 in a counterclockwise direction. Equipment Access Access equipment was not required for the inspection. Page 3 of 10

External Present Condition Present Condition and Analysis Access was limited due to containment dike. As accessible, severe coating failure was observed throughout. Minor to moderate general surface corrosion was observed at areas of coating failure. A minor dent was observed at 270 on the East Head. A minor dent was observed at 90 on the West Head. The tank was observed resting on two pressure treated wooden saddles. No normal vent or emergency vent was located. No grounding cable was located. Analysis The tank was analyzed as STI SP001 Category 2 for the operating parameters as provided by the client. The tank lacked proper normal and emergency venting requirements per UL 142. The tank requires at least a 1¼ normal vent and at least a 3 emergency vent.. A summary of the ultrasonic thickness measurements is located in the Summary of Measurements table that immediately follows. The completed NDE Report is located in Appendix A. The calculations summary is located in Appendix B. Calculated minimum required thicknesses are exclusive of any corrosion allowance. Page 4 of 10

Summary of Measurements Present Condition and Analysis Component East Head Shell West Head Previous Average Minimum Minimum Required Corrosion Rate (inches/year) Remaining Life (years) 0.090 0.083 0.079 0.045 0.090 0.083 0.079 0.045 0.090 0.082 0.073 0.045 Assumed, per STI SP001 7.2.4 Corrosion rates and remaining life calculations cannot be performed until a second set of UT measurements is acquired. Legend > 10% Above Minimum Required Within 10% of Minimum Required At Minimum Required or Below Page 5 of 10

Action Items Action Items The following are the prioritized action items based on the observations and findings at the time of the inspection: No. Item Priority 1 A 1¼ normal vent should be installed on the tank, per UL 142. 1 2 A 3 emergency vent should be installed on the tank, per UL 142. 1 3 The carbon steel components should be cleaned and coated to prevent further deterioration. 3 4 Proper grounding should be verified or installed. 3 Priority 1 Priority 2 Priority 3 Legend High likelihood and consequence of failure. Critical Code or Standard deficiency. May not be fit for continued service without repair. Medium likelihood and consequence of failure. Low likelihood and consequence of failure. Non-critical Code or Standard deficiency. Industry best practice or preventative maintenance. Housekeeping items. Page 6 of 10

Future Inspections, Personnel Qualifications and Reference Industry Codes and Standards Future Inspections Per STI SP001 Table 5.5 for Category 2 tanks, the tank should be periodically inspected by a competent person, per the guidelines in STI SP001 Section 6. According to the Clemson University Spill Prevention Control and Countermeasure (SPCC) Plan, the tank should be reinspected within 10 years. Personnel Qualifications Jeremy M. Orr SC PE # 27219 API 653 # 27205 STI # AC11307 GA, AL, ME, FL, LA, TX, SC, CA registered Professional Engineer; Mechanical Engineer with 13 years experience in inspection, evaluation, repair and design in various industries; AWS CWI, API 653 / 510 / 570 / 580 / 571/ 577 certified; STI certified inspector; NACE coating inspector level I certified; ASNT certified level II VT; SPRAT level I certified rope access technician; ATS certified Level II UTT, MT, PT, VT per SNT-TC- 1A; active member of TAPPI, AWS, NACE International, ASME George E. Matthews GA Registered Engineer-in-Training, Mechanical Engineer with 3 years experience in inspection, evaluation, repair and design in various industries Jesse B. Showalter GA Registered Engineer-in-Training, Mechanical Engineer with 3 years experience in inspection, evaluation, repair and design in various industries Peter Dudley Joey Laprade Reference Industry Codes and Standards ATS certified Level II UTT, MT, PT per SNT-TC-1A ATS certified Level II UTT, MT, PT per SNT-TC-1A Clemson University, Spill Prevention Control and Countermeasure Plan STI SP001, Standard for the Inspection of Aboveground Storage Tanks UL 142, Steel Aboveground Tanks for Flammable and Combustible Liquids Page 7 of 10

Photographs Photo 1: Overall view of the tank. Photo 2: View of coating failure throughout. Page 8 of 10

Photographs Photo 3: View of minor dent at 270 at the East Head. Photo 4: View of inaccessible portion of tank. Page 9 of 10

Photographs Photo 5: View of wooden saddle. Page 10 of 10

Appendix A: NDE Report External Visual Inspection: Component Condition / Comments Nameplate Information East Head Shell West Head Coating None located. Minor to moderate general surface corrosion was observed at areas of coating failure. A minor dent was observed at 270. Minor to moderate general surface corrosion was observed at areas of coating failure. Access was limited from 180 to 250 due to containment dike. Minor to moderate general surface corrosion was observed at areas of coating failure. A minor dent was observed at 90. Severe coating failure throughout. Nozzle / Manway / Repad Minor general surface corrsion was observed at areas of coating failure. Relief / Vent(s) - Main Tank No vent or emergency vent was located. Relief / Vent(s) - Interstitial Space Weld Seam Support System Anchor Bolt / Saddle / Lug Grounding Cable Not applicable. Minor to moderate general surface corrosion was observed at areas of coating failure. No visible deterioration or damage was observed. None located. None located. Internal Visual Inspection: Component Condition / Comments Interstitial Space Not applicable. Notes: ATS460, 4/18/12 Empty Oil Storage Tank.xls

Appendix A: NDE Report Rollout / Nozzle Locations (NOT TO SCALE): End View: (AS SEEN FROM THE SIDE) East Head: West Head: Shell: Plan View: ATS460, 4/18/12 Empty Oil Storage Tank.xls

Appendix A: NDE Report Ultrasonic Measurements: East Head: UTT Inspection Location (A) Minimum Required 0 to 180 Minimum 90 to 270 Minimum 0.2 0.045 0.082 0.8 0.045 0.082 1.5 0.045 0.086 0.8 0.045 0.079 0.2 0.045 0.089 0.083 0.082 0.082 0.083 0.086 Legend > 10% Above Minimum Required Within 10% of Minimum Required At Minimum Required or Below ATS460, 4/18/12 Empty Oil Storage Tank.xls

Appendix A: NDE Report Ultrasonic Measurements: West Head: UTT Inspection Location (A) Minimum Required 0 to 180 Minimum 90 to 270 Minimum 0.2 0.045 0.073 0.082 0.8 0.045 0.077 0.085 1.5 0.045 0.083 0.084 0.8 0.045 0.082 0.085 0.2 0.045 0.083 0.082 Legend > 10% Above Minimum Required Within 10% of Minimum Required At Minimum Required or Below ATS460, 4/18/12 Empty Oil Storage Tank.xls

Appendix A: NDE Report Shell Ultrasonic Measurements: UTT Inspection Location (A) Minimum Required 0 Minimum 90 Minimum 170 Minimum 270 Minimum 4.8 0.045 0.083 3.7 0.045 0.085 2.5 1.3 0.045 0.045 0.085 0.082 0.2 0.045 0.087 0.080 0.083 0.079 0.080 0.082 0.081 0.087 0.079 0.081 0.085 0.088 0.082 0.085 0.080 0.081 Legend > 10% Above Minimum Required Within 10% of Minimum Required At Minimum Required or Below ATS460, 4/18/12 Empty Oil Storage Tank.xls

Appendix A: NDE Report Nozzles / Manways / Reinforcement Ultrasonic Measurements: Notes: A Threaded Nozzle Reinforcement Pad Nozzle NPS 0 Scan 180 Width Internal Projection N1 2 A A A None N/A Unknown N2 2 A A A None N/A Unknown N3 0.75 A A A None N/A Unknown ATS460, 4/18/12 Empty Oil Storage Tank.xls

APPLIED TECHNICAL SERVICES, INCORPORATED Corporate Headquarters 1049 Triad Court, Marietta, Georgia 30062 770.423.1400 Fax 770.514.3299 www.atslab.com APPENDIX B: CALCULATIONS SUMMARY UL 142: MINIMUM THICKNESS (s.g. less than or equal to 1.0) Horizontal Construction (with flat heads) Actual Capacity = 264 U.S. gallons Minimum Design = 0.093 in. (per UL142 section 13) STI Min. Required = 0.045 in. (per STI SP001, 10.0) Per STI SP001 10.0, the minimum required thickness for Category 2 tanks is 50% of the original construction thickness. The original construction thickness for this tank was assumed to be 0.090" (13 gauge) based on measuring an uncorroded area per STI SP001 7.2.4. The minimum required thickness was calculated as 50% of that value. Where: D = Diameter of Tank (ft.) = 3.00 L = Length of the Tank (ft.) = 5.00 (cannot be greater than 6 times D) UL 142: VENTING Actual Capacity = 264 U.S. gallons Wetted Surface Area (horizontal) = 46 ft 2 (assumes flat heads) Normal Venting Minimum Opening = 1 1/4 NPS (per Table 8.2) A vent opening must be in addition to the fill, withdrawal and liquid level gauge openings. The normal vent must be at least as large as the filling or withdrawal connection, whichever is larger. Emergency Venting Horizontal Minimum Opening = 3 NPS (per Table 8.1) Emergency vents are not prohibited from use for normal venting. The pipe size applies to lengths of not more than 12 in. Page 1 of 2

APPLIED TECHNICAL SERVICES, INCORPORATED Corporate Headquarters 1049 Triad Court, Marietta, Georgia 30062 770.423.1400 Fax 770.514.3299 www.atslab.com APPENDIX B: CALCULATIONS SUMMARY UL 142: SADDLES The tank was supported by non-standard saddles. The geometry of the saddles could not be analyzed without performing a finite element analysis (FEA). No damage to the tank shell was observed at the saddle attachment locations. Page 2 of 2