1. Assignment on Fundamentals of Oil and
Gas Business
Submitted by-
Anubhav Talukdar
Roll no :R020216010
MBA Oil and Gas
CoMES, UPES, Dehradun

2. North Dakota Oil pipeline
Regions connecting- North Dakota and Illinois, USA
Approximate length- 1170 miles
Project cost- $4 billion dollars
Introduction: -
The Dakota Access Pipeline Project is another rough 1,172-mile, 30-inch
measurement pipeline that will interface the quickly extending Bakken and Three
Forks generation regions in North Dakota to Patoka, Illinois. The pipeline will
empower locally created light sweet unrefined petroleum from North Dakota to
achieve real refining markets in a more straightforward, financially savvy, more
secure and ecologically mindful way. The pipeline will likewise diminish the
present utilization of rail and truck transportation to move Bakken unrefined
petroleum to major U.S. markets to bolster residential interest.
It will transport roughly 470,000 barrels for each day with a limit as high as
570,000 barrels for every day or more. Shippers will have the capacity to get to
numerous business sectors, including Midwest and East Coast markets and the
Gulf Coast by means of the Nederland, Texas raw petroleum terminal office of
Sunoco Logistics Partners.
Contingent on administrative endorsements, the pipeline is anticipated to be in
administration by the final quarter of 2016.
What is a Pipeline:
Pipelines are used for following purposes in onshore and offshore operations-
1. Transportation of hydrocarbons
2. Providing Flow lines to transfer product from a platform to export lines
3. To provide Flow lines to transfer product between platforms, subsea
manifolds and satellite wells.
4. Injection of water, gas or chemicals in secondary and tertiary recovery
processes.

3. Pipeline design stages include the following three stages
a. Conceptual engineering
b. Pre-engineering
c. Detailed engineering
a. Conceptual engineering
Here engineers try to establish technical feasibility and constraints on the system
design and construction. Which includes the following
- To eliminate non- viable options;
- To identify the required information for the forthcoming design and
construction;
- To allow basic cost and scheduling exercises to be performed;
- To identify interfaces with other systems planned or currently in existence.
The estimation of the early designing work is that it uncovers potential
troubles and zones where
more exertion might be required in the information gathering and outline zones.
b. Pre-engineering or preliminary engineering:
-Basically done to determine the size of the pipeline.
-Determining the thickness of the wall and the required grade for the
pipeline
-Verifying the pipeline against design and code requirements for
installation and operation.
The level of building is here and there indicated as being adequate
to detail the outline for incorporation into a "Building, Procurement,
Construction and Installation" (EPCI) delicate. The EPCItemporary
worker ought to then have the capacity to play out the nitty gritty
outline with the base number of varieties as point by point in their
offer.
c. Detail engineering
In this stage, the point by point building stage is, as the depiction
recommends, the improvement of the plan to a point where the
specialized contribution for all acquirement and development
offering can be characterized in adequate detail.
This stage includes the following stages-
-Course advancement;

4. -Choice of divider thickness and covering;
-Affirm codenecessities on quality, Vortex-Induced Vibrations (VIV), on-
base soundness, worldwide clasping and establishment;
-Affirm the plan andor play out extra outline as characterized in the
preparatory designing;
-Advancement ofthe outline and drawings in adequate detail for the subsea
scope. This may incorporate pipelines, tie-ins, intersections, traverse
adjustments, risers, shore approaches, subsea structures;
-Plan point by point arrangement sheets in view oflatest study information;
-Planning of determinations, commonly covering materials, cost
applications, development exercises (i.e. pipelay, study, welding, riser
establishments, spoolpiece establishment, subsea tie-ins, subsea structure
establishment) and charging (i.e. flooding, pigging, hydrotest,
cleaning,drying);
-Plan material take off (h4TO) and order essential demand data for the
acquisition of materials;
-Plan outline information and other data required for the confirmation
powers.

5. Design Process: -
The North Dakota pipeline
 Capital Expenditure of the project $ 3.8 billion.
 Geological area coveres four states of North- America. They are discussed
below-
 North Dakota- Stanley, Ramberg site, Epping terminal,Trenton
option site, Watford city terminal site, Johnson corner Terminal
 South Dakota-Campbell, McPherson, Edmunds, Faluk, Spink,
Beadle, kingsbury, Miner, Lake, McCook, Minnehaha, Linchon.
 Iowa- Lyon, Sioux. O’ Brien, Cherokee, Buena Vista, Sac, Calhoun,
Webster, Boone, Story, Polk, Jasper, Des Moines, Mahaska,
Keokuk, Wapello, Jefferson, Van Buren, Lee,
Requirement to
transport product
specific
requirement of
operator
codes, standards
and specifications
requirement of the
process
selection of wall
thickness
selection of
material grade
selection of route
Projection of
flowline
flowline stress
analysis and
material grading &
coding

6.  Illinois- Hancock, Adams, Schuyler, Brown, Pike, Scott, Morgan,
Scott, Macoupin, Montgomery, Bond,Fayette.
Overview of the pipeline: -
The pipeline has been developed by Dakota Access LLC. The
companyis a subsidiary ofEnergy Transfer Crudeoil company. The
pipeline will connectNorth Dakota to the Illinois Terminals and will
transport crude oil from Bakken, North Dakota.
Key elements of the pipeline are-
 During the constructionphase, an estimated $ 156 million will
be earned by sales and income taxes.
 The Investment of the project is $ 3.7 billion.
 The project is impacting local and natural labours of US by
creating around 11,000 construction jobs. Out of which
around 35% will become permanent jobs.
 The pipeline will carry half of the Bakken’s current daily
crude oil production.
 The pipeline is likely to meet or exceed state and federal
requirements of safety. At minimum, it will designed in
accordance to 49th code of Federal Regulations part 195
 The pipeline is expected to be operational by 2016.
Introduction of the pipeline: The Dakota Access Pipeline Project is another
underground unrefined petroleum pipeline intended to transport 470,000 barrels
of raw petroleum every day (with a development potential up to 570,000 barrels
for every day) from the Bakken/Three Forks arrangements in North Dakota to an
end close Patoka, Illinois. The venture will require the development of around
1,172 miles of 12-creep to 30-crawl distance across pipeline through the
conditions ofNorth Dakota, SouthDakota, Iowa and Illinois ending close Patoka,
Illinois. The venture is upheld by long haul restricting authoritative
responsibilities from shippers and expects that the new pipeline and its related
offices will be prepared for administration in late 2016, pending administrative
endorsements.
Why is the pipeline required: The motivation behind the Dakota Access
Project is to securely transport U.S. unrefined petroleum from the Bakken/Three
Forks arrangements in North Dakota to an end close Patoka, Illinois to bolster
U.S. customers' vitality needs. The U.S. still imports half of the oil it devours
every day and DAPL will give a basic connection to close the crevice between
what we create as a nation and what we expend as we work to be genuinely free
of vitality from precarious districts of the world. Each barrel of unrefined

7. petroleum created in the United States straightforwardly dislodges a barrel of
imported outside oil. What's more, the Dakota Access Pipeline will lessen the
measure of raw petroleum delivered by truck and by rail and increment the sum
transported by pipeline. Since pipelines are measurably the most secure and most
solid method of transporting rough, DAPL will enhance wellbeing to people in
general and environment and free up rail limit for the transportation of products
and different wares as of now obliged by unrefined petroleum loads.
Pipelines assume an indispensable part in our day by day lives and give a basic
connection between the wellsprings of vitality underway fields and end-clients or
customers. Without pipelines, most of the United States would not have entry to
American oil and characteristic gas and would need to depend upon remote
wellsprings of less solid, less accessible, and significantly more costly
wellsprings of vitality to make items, controlour homes and organizations, go via
air, land and ocean, and drive mechanical and fabricating ventures.
The North Dakota Bakken has seen a critical increment in the creation of
unrefined petroleum, from 309,000 barrels a day in 2010 to more than 1 million
barrels for each day in 2014. This vitality will require dependable transportation
systems to achieve U.S. markets, and pipelines are the most secure, most
proficient strategy fortransporting oil, as per the U.S. Division ofTransportation.
Uniquely composed, fastidiously developed and precisely kept up to meet or
surpass state and government wellbeing guidelines, today there are more than
190,000 raw petroleum pipelines working in the United States. Pipelines are
planned and kept up to last several years and withstand outrageous climate
situations.
Dakota Access/ DALP: Dakota Access, LLC (ordinarily alluded to as
"DAPL" or "Dakota Access") is an organization of Energy Transfer Partners
shaped to securely and dependably transport American raw petroleum from the
Bakken/Three Forks arrangements in North Dakota to business sectors and
refineries situated in the Midwest, East Coastand Gulf Coastlocales ofthe United
States. Its will likely ease transportation strains on rail for rough transportation
and securely transport U.S. unrefined petroleum to U.S. markets by means of
pipeline to facilitate the objective of vitality autonomy.
Vitality Transfer, and its joined offshoots, is the biggest pipeline organization in
the U.S. by yearly volume transported and the second biggest U.S. pipeline
organization measured by foundation. Vitality Transfer and its different pipelines
have given transportation administrations since the mid 1900s through a broad
system of underground pipelines. Vitality Transfer's raw petroleum pipeline
business comprises of around 5,400 miles of pipelines. We have planned,

8. constructed, and securely worked pipelines all through the United States. Our
workers guarantee our pipelines work securely, proficiently, and dependably year
round and in consistence with all Federal, state, and neighborhood laws and
directions.
The project timeline:-
 3rd Quarter 2014 Initial Meetings of the company with State Permitting
Agencies
 3rd & 4th Quarter 2014 Project Open Houses/Informational Meetings
 4th Quarter & 1st Quarter 2015 State Applications Filed
 3rd Quarter 2015 State Authorizations Anticipated
 4th Quarter 2015/ 1st Quarter 2016 Construction Commences
 4th Quarter 2016 Facilities In-Services.
Data according to the Region:
1. North Dakota
• State Project cost - $1.4 billion
• Amount that will be spent in state - $656 million
• Estimated affect on generation and deals - $1.05 billion
• Right-of-route installments to landowners – roughly $57 m
•Labor wage (with half beginning from venture locale) – approx. $450
million
•State utilize, net receipts and cabin charges amid development – approx.
$32.9 million
•Local utilize, net receipts and cabin charges amid development – approx.
$1.7 million
•Increase in state singular wage assess income – approx. $5.9 million
•State property impose on a yearly premise year-over-year – approx. $13
million
2. South Dakota:
a.State Project cost - $820 million
b.Amount that will be spent in state - $486 million
c.Estimated effect on generation and deals - $838 million
d.Right-of-path installments to landowners – around $47 million
e.Labor wage (with half starting from venture district) – approx. $303
million

9. f.State utilize, net receipts and cabin charges amid development – approx.
$35.6 million
g.Local utilize, net receipts and hotel charges amid development – approx.
$2.9 million
h.State property charge on a yearly premise year-over-year – approx. $13
million
3. Iowa:
State Project cost - $1.04 billion
Sum that will be spent in state - $628 million
a. Evaluated affect on generation and deals - $1.09 billion
b. Right-of-path installments to landowners – around $60 million
c. Work salary (with half starting from venture district) – approx. $390
million
d. State utilize, net receipts and cabin charges amid development – approx.
$33.1 million
e. Neighborhood utilize, net receipts and hotel charges amid development
– approx. $2.2 million
f. Increment in state singular wage impose income – approx. $7.7 million
g. State propertyassess ona yearly premise year-over-year – approx. $14.6
million
4. Illinois:
a.State Project cost - $516 million
b. Sum that will be spent in state - $367 million
c. Assessed affect on generation and deals - $734 million
d. Right-of-route installments to landowners – roughly $31 million

10. e. Work wage (with half beginning from venture area) – approx.
$303 million
f. State utilize, net receipts and cabin charges amid development –
approx. $16.4 million
g. Nearby utilize, net receipts and hotel charges amid development
– approx. $3 million
h. Increment in state singular wage assess income – approx. $7.7
million
I.State propertyimposeona yearly premise year-over-year – approx.
$750,000.
Safety of the pipeline: -
Statement: Vitality Transfer has long standing duties to the wellbeing of
individuals, nature, and our property and resources. We do this since it bodes
well, yet more vitally, it is the best thing to do. These responsibilities are held as
crucial centre values and are an indispensable piece of us as an organization and
a corporate native. Our wellbeing duty stretches out to our workers, the overall
population, and our temporary workers. Regarding wellbeing execution, we will
likely be among the "mostelite" in our companion aggregate. To accomplish this
operational incredibleness, Energy Transfer attempts to employ and keep up the
mostqualified and committed workforce in the business and to make security and
wellbeing responsibility a portion of our everyday operations. The initial step of
the wellbeing responsibility program is the improvement of security gauges and
desires. Once built up, these guidelines and desires are then plainly conveyed to
all workers and temporary workers, who are held to these measures with the
desire that every individual ought to feel the commitment to make wellbeing the
most elevated need. For as long as five years, we have reliably achieved our
security objective by having a representative OSHA recordable wellbeing record
that set us in the top quartile of expansive midstream organizations. While we
take incredible pride in our accomplishments, we are not fulfilled. Vitality
Transfer has a dream with a true objective of a working environment that
accomplishes a damage and occurrence free day consistently.
Environment Safety statement: Vitality Transfer is focused on open
security and the assurance of the earth. Vitality Transfer and its subsidiaries are
focused onworking our offices in consistencewith all material government, state,
and nearby ecological laws, controls, and benchmarks. Besides, our

11. Environmental Policy Manual effectively actualizes arrangements, systems and
practices to accomplish our objective of full consistence. Our administration
group is in charge of guaranteeing that the Environmental Policy Manual is a vital
piece of our corporate culture keeping in mind the end goal to better serve the
workers, clients, and constrained accomplices of Energy Transfer. We
consistently look for approaches to improve our operations in the zones of
ecological and asset security and preservation.
How will the Dakota pipeline will maximise safety: -
At Energy Transfer and with the Dakota Access pipeline, wellbeing is
company’s top need. Comapany will likely give sheltered and dependable
transportation of raw petroleum in the groups we cross and to the clients they
serve. DAPL Pipeline actualizes all state and elected guidelines into the plan and
operations of the pipeline and in numerous examples they surpass government
wellbeing gauges to guarantee a long haul, sheltered and solid pipeline. A portion
of the wellbeing measures we are fusing into DAPL incorporate.
The company states that-
a. They outline, build, work, and keep up the pipeline to meet or surpass Federal
and security necessities, and utilize gear and materials that meet or surpass
industry norms.
b. They investigate each weld that joins every area of pipe both outwardly and
with x-beams.
c. They introduce weight and temperature sensors along the pipeline at mainline
valves, pump stations, and meter stations to give triggers to close off the stream
of raw petroleum through pipe areas in crises. These actuators can be activated
close to the distinguishing proofof an issue and the valve can be closed close to
setting off the flag.
d. They investigate and hydrotest as per administrative prerequisites and in
addition distributed industry measures before putting the pipeline in
administration.
e. They utilize both a neighbourhood and remote controlled crisis shutdown
framework to instantly and securely shutdown pump stations and the pipeline.
f. They introduce uncommon control gadgets to keep pipeline weight from
surpassing safe points of confinement.
all day, every day checking of pipeline stream weights by a brought together
Pipeline Control Centre. Pipeline can be closed around a Control administrator,
or send nearby field staff to physically close down the pipeline.

12. g. They perform routine ground and flying hole assessments of the pipeline at
least 26 times each year. Vitality Transfer commonly flies the pipeline at regular
intervals, climate allowing.
h. They test and align controls and security gear on a normal premise.
i. They teach people in general and direct harm avoidance programs consistently.
We lead and hostcrisis reaction drills with our workers and neighbourhood crisis
responders situated along the pipeline course.
j. They facilitate with nearby crisis responders and prepare neighbourhood
dominant voices in averting and reacting to any pipeline related issues.
k. They present signs on demonstrate the area of the pipeline and a telephone
number to call before burrowing.
l. They bolster state-wide underground utility harm aversion programs. The
Dakota Access Pipeline will use the 811 One-Call System.
Socio-cultural impact of the pipeline:
The Sioux tribe is opposingthe entire project since the very beginning who
are also the native of North Dakota.
The tribe's fundamental contention is that controllers at the Army Corps of
Engineers didn't allow it enough of to evaluate the pipeline's effect on social
locales and the conceivable impacts of a spill along the line.
The tribe is looking for a directive hindering extra development until it can
make those evaluations.
According to Jan Hasselman, who is representing the tribe, the law doesn't
give the tribes veto control over anything, it gives them the privilege to have an
exchange around their social legacy
Past lawful issues, however, the tribe has raised social complaints to the
pipeline, calling it the most recent slight from organizations and governments
looking to benefit off of regular assets on or close tribal terrains.
In that sense, Hasselman and tribal partners said, the Standing RockSioux
are prepared to wage a more careful challenge the venture and transform it into a
social equity issue.
According to Standing Rock Sioux Chairman David Archambault II-

13. Whether it's gold from the Black Hills or hydropower from the Missouri
River or oil pipelines that undermine our familial legacy, the tribes have
constantly paid the cost for America's success, We are additionally a flexible
people who have survived unspeakable hardships before, so we recognize what
is in question now.