PRCI: Technology for Energy Pipelines
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About PRCI

Vision "To be the preeminent collaborative technology development organization of, by, and for the energy pipeline industry."

PRCI Description
Membership and Administration
Membership Subscription
Coordination Activities
Funding
PRCI Structure & Organization
Technical Committees
Technical Program Planning
Intellectual Property
New Member's Checklist
Access to the PRCI Members' Area Website
PRCI Members
Conclusions

PRCI DESCRIPTION

Mission: "To conduct a collaboratively-funded technology development program that enables energy pipeline companies around the world to provide safe, reliable, environmentally compatible, and cost-effective service to meet customer energy requirements."

Pipeline Research Council International, Inc. (PRCI) is a tax-exempt, not-for-profit corporation comprised of energy pipeline companies. PRCI was first organized in 1952, as the Pipeline Research Committee, (click here to view photo of founders), by 15 natural gas transmission pipeline companies to address the problem of long-running brittle fractures in natural gas transmission pipelines. In solving that problem within two years, the Committee demonstrated the benefit of industry collaboration and the leveraging of voluntary industry funding. Although originally focused on technology development for the gas transmission pipeline industry across the research spectrum from basic to applied, over the years PRCI has increasingly focused on near-term integrity and reliability solutions to design and operating problems and realizing the opportunities that an industry-managed program generates. As the focus of the work has evolved and broadened so too has PRCI's membership with an increasing focus on oil and petroleum products pipelines. As a result, PRCI is now a critical resource for all 'energy pipelines'.

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MEMBERSHIP AND ADMINISTRATION

Membership is open to natural gas transmission companies, and other companies with operating pipeline systems and having an interest in pipeline technology including crude oil and petroleum products pipelines. The current membership includes companies operating in the United States, Canada, South America, Europe and Saudi Arabia. Each member company, regardless of its individual subscription level, is represented on PRCI's Board of Directors and may make such further assignments to PRCI's technical supervisory committees as reflective of its interests. The Board elects a chairman from among its membership for a two-year term. PRCI's current Chairman is Winston Johnson II, of El Paso Energy Pipelines Group. PRCI provides a small professional staff for contract and program administration, meeting planning, and project management.

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MEMBERSHIP SUBSCRIPTION

PRCI's revenues are primarily derived from individual member subscriptions calculated annually based on reported "qualifying" pipeline mileage. Qualifying mileage is defined as welded steel pipe that is 6-inches or larger in diameter and having a maximum allowable operating pressure of 500 psi or greater; or, in the case of crude oil and petroleum product pipelines, operating at 20% or greater of the pipe's specified minimum yield strength.

  • Full voting membership in PRCI is open to companies operating natural gas transmission and crude oil and petroleum products pipelines (or, "liquid pipelines")
  • The Association of Oil Pipelines holds a 'Pipeline Industry Organization' membership that provides AOPL with a seat on the Board to represent all of its members not otherwise a member of PRCI.
  • All members joining after 2000, must commit to a 3-year membership, for which they get immediate access to all PRCI technology developed over its 50 years. The following is the fee structure for these companies in fulfillment of their 3-year commitment
Year
Base Assessment Fee/Mile of Qualifying Pipe
2004 $93,831 $3.58
2005 $101,713 $7.15
2006 $101,713* $7.75*
* Or, as otherwise determined by the Board prior to 2006

The annual budget, which determines the sum to be raised through subscription, is developed by the PRCI membership and approved by a majority vote of the Board. In addition, a number of cooperative projects have been developed that bring in outside funding in return for participation in the management of projects in the technical committees and the deliverables generated. There are currently six technical committees comprised of industry technical representatives from member companies who carry out the PRCI program (see below). Additional funding is obtained from member companies, non-member companies, and government agencies for projects of special interest to those contributors.

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COORDINATION ACTIVITIES

In order to increase the scope of its research program, leverage its available subscription resources, and share knowledge, PRCI has developed relationships with the following organizations and groups having complementary interests:

  • The Interstate Natural Gas Association of America (INGAA)
  • The INGAA Foundation
  • NYSEARCH/Northeast Gas Association
  • The American Petroleum Institute
  • The American Gas Association
  • The Southern Gas Association
  • European Pipeline Research Group (EPRG)
  • Australian Pipeline Industry Association (APIA)

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FUNDING

Member Subscription

The majority of funding for PRCI's technology program comes from the pipeline industry through the voluntary annual contributions of member companies and the pipeline portion of GTI's research and development program funded under a surcharge mandated by the Federal Energy Regulatory Commission, and collected by interstate gas transmission pipeline companies. In 2004, these combined funding sources will invest more than $12.0MM in the ongoing energy pipeline technology development program. With this level of funding, the technology program will attract nearly $8.0MM in co-funding, thereby generating a total 2004 technology program of $20.0MM.

Co-funding

Funding for the PRCI technology development program is augmented by the co-funding of member companies, non-member energy pipeline companies, technology development firms, and government agencies and instrumentalities. Co-funding allows non-members to participate in the selection, management, and benefits of PRCI's technology development.

Marketing PRCI Technology

PRCI makes much of the intellectual property it has developed over its 50-year history available for purchase by non-members. PRCI technology products and reports are available from a widely diverse catalogue by contacting our strategic partner, Technical Toolboxes, Inc., or from the PRCI website, www.prci.com.

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PRCI STRUCTURE & ORGANIZATION


Board of Directors

PRCI is governed by a Board of Directors, comprised of one voting member from each member pipeline company, the Association of Oil Pipelines, and the Gas Technology Institute (GTI). The Board of Directors meets two times each year, in early Spring and in conjunction with PRCI's corporate Annual Meeting in midsummer. The 9-member Executive Committee of the Board develops policy and program recommendations for the Board and exercises executive decision-making for the Board in specific areas of delegation.

  • Board of Directors comprised of a voting representative from each member company, following a policy of "one member-one vote".
  • Members may also designate non-voting Board representatives who may participate in all Board discussions and may serve on Board-level committees and ad hoc groups.
  • The Board meets twice a year to review program progress and provide guidance on program selection for the following year (April), and provides final technical program approval (August).

Executive Committee

  • From the 35-member Board of Directors nine members are drawn to form the Executive Committee, which is the primary "steering committee" of the corporation
  • The Executive Committee meets in conjunction with the Board meetings, and on its own each November
  • In addition, the Executive Committee meets with the Technical Committee chairs in mid-February and early July to provide executive guidance on the development of the technical programs being developed by the Technical Committees
  • The composition of the Executive Committee is: the Chairman and Vice Chairman; five members of the Board elected by the Board; two members of the Board appointed by the Chairman.

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Technical Committees

  • The Technical Committees meet three times each year, usually for 2 - 3 days, in January/February, April/May, and August/September.
  • At each Technical Committee meeting the Committees invite some of their contractors to attend and provide status updates on their work when: 1) there is an issue the Committees need to decide in order for the work to go forward; 2) an important result has been achieved; 3) a unique problem has been encountered; or, 4) a final draft report is ready for distribution within the Committee for comment and/or approval. In addition, contractors post periodic status reports on the Technical Committees' pages on the PRCI website.
  • Assigning technical representatives to the Technical Committees is the responsibility of each member company. Each PRCI member is entitled one vote in each Technical Committee in which it participates. However, all member companies are encouraged to send as many technical representatives as they wish to all technical meetings.
  • Under PRCI by-laws, the chair of each Technical Committee is appointed by the Chairman of the Board of Directors of PRCI. These appointments usually are based on recommendations from member companies.
  • Each Technical Committee assigns, based first upon the request of interested technical representatives, members of the Committee to head either specific programs or "emphasis areas" (e.g., in Corrosion and Inspection, there are separate emphasis areas for external and internal corrosion). The heads of these programs or emphasis areas are usually called "ad hoc chairs" or "program managers", and they are selected upon request by a technical representative wishing the assignment or, failing that, by the chair of the Technical Committee.

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SIX TECHNICAL COMMITTEES:

The technology development work of PRCI - planning, execution, and management - is done by its six Technical Committees, comprised of technical representatives assigned by the member companies:

Materials [2004 Funding: $3.0MM]

  • Integrity Assessment and Management of In-service Damage
  • New Materials, Improved Welding Processes, and Improved Defect Detection
  • Improved Maintenance Welding Techniques
  • Refined Materials Design
  • Safe Use of Early Generation Pipeline Research Council International
  • Framework for Pipeline Integrity and Risk Management

Design, Construction and Operations [2004 Funding: $2.0MM]

  • Procedures and Applications for Periodic Integrity Assessment
  • Methodologies for Prevention and Detection of Mechanical Damage
  • Characterizing and Quantifying Loads and Load Effects on Onshore and Offshore Pipelines
  • Reliability-based Design Methodology for New Onshore and Offshore Pipeline Construction

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Corrosion & Inspection [2004 Funding: $3.7MM]

  • NDT Methods to Effectively Find and Characterize Existing Corrosion
  • Improved Methods for Mitigating Internal and External Corrosion
  • Improved ILI Tools to Find and Characterize Defects and Damage
  • Improved Methods to Find, Characterize, and Manage Environmental Cracking (including stress corrosion cracking (SCC))

Compressor & Pump Station [2004 Funding: $1.3MM]

  • Increased Response Time for Implementing Environmental Controls
  • Increased Reliability of Existing Engines in Reduction of NOx Emissions without Retrofitting

Measurement [2004 Funding: $1.0MM]

  • Product Sampling Techniques to Reduce Impurities and Consequent System Damage
  • New Metering Technology to Enhance Reliability and Deliverability

Underground Storage [2004 Funding: $1.0MM]

  • Improved Criteria for Well Casing Repair
  • Enhanced Deliverability and Facility Re-engineering

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TECHNICAL PROGRAM PLANNING

  • At the February meeting of the Executive Committee and the Technical Committee chairs, the chairs describe potential programs for the next program year, and receive guidance from the Executive Committee on developing the programs for the Board at its April meeting.
  • At the April meeting of the Executive Committee (held the day prior to the Board meeting), the Technical Committee chairs present a full set of proposed programs for the Board's consideration. The Executive Committee makes a recommendation for the Board on proposed target budget levels, and based on the recommendation, the Board approves an "order of magnitude" prioritization and proposed target budgets to guide the Technical Committees in the further refinement of their program proposals.
  • In early July, the Executive Committee Planning Subcommittee meets with the Technical Committee chairs to review the refinement of the programs following the April Board meeting, and develops a recommended technology budget for the Board's adoption at its August meeting.
  • Upon a presentation by the Technical Committees at the August Board meeting, the Board does a final vote to approve the technical programs, by Technical Committee, for the upcoming year.
  • All contracts are executed following the final round of Technical Committee meetings in mid-August to mid-September, with the goal of the work beginning on or before January 1 of the program year.

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INTELLECTUAL PROPERTY

  • Upon becoming a member of PRCI and executing a Membership Subscription Agreement with a three-year commitment, the new member has immediate access to all the technology reports and software developed by PRCI since its inception.
  • In PRCI parlance, a report is "published" when the Board determines that it can be disseminated outside the membership of PRCI. Upon approval of a report by the Board, each member company is provided two hard copy versions of the report, and may obtain more by request and payment of a small shipping charge.
  • If the Board approves a technical report for "publication", it is assigned a catalogue number and its availability is posted on the PRCI website, along with direction on how to purchase the report from Technical Toolboxes, Inc., PRCI's strategic partner for marketing and distribution of PRCI's intellectual property (IP).
  • The new member is referred to the Subscription Agreement provided in Attachment B for rights and obligations regarding the access to, and use of, PRCI IP.
  • A member company may load any PRCI IP - paper reports and software - in its company database(s), but in accordance with the rights and obligations set forth in the Subscription Agreement, the information may only be applied on the mileage and related facilities declared by the member in the Subscription Agreement.
  • With respect to software, the member receives two copies of the software for installation on two computers, but the member may also download the software for broad distribution for use on the mileage and facilities that comprise its membership per the Subscription Agreement. Additional copies of the software for installation on specific computers are available for the cost of shipping.
  • All representatives of the member company who would use the technology on the mileage and related facilities are declared by the member company in the Subscription Agreement.
  • There is no limitation on the number of paper copies that can be made; the limitation runs to the facilities on which the information in the report can be used.

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NEW MEMBER'S CHECKLIST

Pipeline companies wishing to join PRCI should provide the following information to Administrative Assistant, Natalie M. Zawada, via email, at nzawada@prci.org , or by mail at 1401 Wilson Boulevard, Suite 1100, Arlington, VA 22209.

  1. Completed 2004 Subscription Agreement. Note: It is imperative that you provide the name, address, phone number, fax number, email address (you may also include your assistant's contact information if you wish) of the individual that will be representing your company on the PRCI Board of Directors.
  2. A list of any subsidiaries who operate the qualifying mileage declared in the mileage portion in the 2004 Subscription Agreement.
  3. The Member Company's main address and phone number (if different than the address of the Board member identified in the Agreement), which may be used in future marketing materials such as the PRCI Pipeline Integrity Service Sourcebook.
  4. For each of the Technical Committees in which your company plans to participate, the name and contact information of the individual who will be your "voting" member for that committee. Note, an alternate member may also be selected for each committee.
  5. Contact information of individual to whom the subscription invoice should be sent and who would be available for any billing questions.
  6. Electronic version (JPEG or TIFF) of the company logo for use on the PRCI website. The Logo will be posted at the following address: http://www.prci.org/member_list.cfm (If your company prefers NOT to be listed, please let Mary know.)
  7. Your company's website URL address. This information will be linked to your Logo (see #6 above).

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ACCESS TO THE PRCI MEMBERS' AREA WEBSITE

Access to the PRCI "Members Area" may be accomplished as follows:

On or after January 1st, 2003 (as your Subscription to PRCI starts January 1, 2003) go to http://www.prci.org/members_area/index.cfm, select "Sign Up Today" and complete the required information. Note: This should be completed by EACH individual from your company, who is authorized to access the PRCI Member's Documentation, per the terms of the 2003 Subscription Agreement. For assistance, contact either Administrative Assistant at 703/387-0190 (nzawada@prci.org) or Webmaster at 403/250-2700 webmaster@prci.org).

MEMBER COMPANIES





Alliance Pipeline Limited
Association of Oil Pipe Lines
Boardwalk Pipelines
BP
Buckeye Partners, L.P.
CenterPoint Energy Gas Transmission Company
Chevron Pipe Line Company
Colonial Pipeline Company
Colorado Interstate Gas
Columbia Gas Transmission Corp.
Conoco Phillips
Dominion Resources, Inc.
El Paso Natural Gas
Enbridge Pipelines & Enbridge Energy Partners
EPCO, Inc.
Explorer Pipeline Company
Exxon Mobil Corporation
Gassco A.S.
Gasum Oy
Gaz de France
Marathon Pipe Line LLC
N.V. Nederlandse Gasunie
National Fuel Gas Supply Corporation
National Grid
ONEOK Partners
Pacific Gas and Electric Company
Panhandle Energy
Petrobras
Saudi Aramco
Shell Pipeline Company LP
Southern California Gas Company, a Sempra Energy utility
Southern Natural Gas
Spectra Energy Transmission, LLC
Tennessee Gas Pipeline Company
TOTAL S.A.
TransCanada PipeLines Limited
TransGas Limited
Transwestern Pipeline Company
Williams Companies, Inc.

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Conclusions

By joining their common interests in technology development and application, PRCI members are able to focus considerable expertise and experience on significant technology needs common to all participants. PRCI focuses on reliability and integrity, with a special emphasis on safety and environmental performance. In addition, with both policy and funding responsibilities vested in a single governing Board of Directors, PRCI is able to react to short-term needs while maintaining the proprietary nature of its ongoing activities. Periodic assessments by individual member companies of the return on their PRCI investment, relative to their subscription obligation, have consistently produced ratios in excess of 5 to 1. For the past 50 years, PRCI's success has been attributable to its adherence to three principal commitments:

  • To foster role of the Board of Directors and the technical representatives in the development of priorities and the management of the overall technology program;
  • To establish a fiscally and technically sound position for PRCI in the industry's technology development spectrum; and,
  • To expand the membership base and broaden PRCI's technical perspectives.

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Please contact us to learn more about PRCI, Including how to become a member of the premier technology development organization 'of, by, and for the energy pipeline industry'.

For complete contact details, click here.

For the latest PRCI news, click here.

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