Executive Committee on Standardization of Oilfield Equipment & Materials (ECS)

1. Executive Committee on Standardization of Oilfield Equipment & Materials (ECS) New Member Orientation Roland GoodmanManager, Upstream Standards June 24, 2008Hyatt Regency, Calgary AB, Canada 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

2. New Member Orientation Presentation will cover: • API background • Value of API standards • Committee organization • Standards development process • Antitrust • Contact information 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

3. API Background • API formed in 1919 as national trade association to support the U.S. oil and natural gas industry through legislative and regulatory advocacy and standards development • The API Standards Department was formed in 1923, and the first API standard was published in 1924 covering pipe sizes, threads, and couplings • All industry segments are now active in standardization – Exploration & Production, Refining, Marketing, Petroleum Measurement, and Pipeline Transportation 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

4. API Roles • Develop industry standards • Government advocacy • Conduct research • Gather statistics • Inform government and public • Publish technical industry information • Provide education • Oversee certification programs 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

5. API Standards • Foundation of self supporting programs, including API Monogram Program • Basis for worldwide operations • Core of Institute’s technical authority • API publishes ~500 technical standards covering all aspects of the oil and natural gas industry 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

6. Value of API Standards • Improved safety and reliability • Improve equipment interchangeability • Reduced compliance costs • Reduced procurement costs • Foundation for company standards • Basis for a majority of the ISO equipment standards in the oil and gas industry 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

7. International Standards Activities API is involved in international standardization via ANSI • Secretariat for ISO TC 67 (Equipment & Materials) and US Technical Advisory Groups (TAGs) • ~70% of ISO TC 67’s international work program is based on API standards • Several API standards committee members also participate on ISO committees 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

8. Standards Development Process API is an ANSI-accredited Standards Developing Organization (SDO) • Open, transparent consensus process • Approved and published procedures • Parliamentary procedures (booklet) • Regular program audits 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

9. E&P Standards Committees • ECS: • Supervises work of subcommittees • Coordinates cross-subcommittee issues • Approves standards research • Subcommittees: • Develops maintains standards • Serves as the consensus voting body • Supervises standards research 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

10. ECS Organization Chart 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

11. Standards Development Process • Developed by consensus (does not mean unanimity) • Subcommittee members are voters • Voting categories are established in some subcommittees • One company – One vote • Balance between owner/users, manufacturers, contractors, and consultants • Entire process typically takes 12-36 months (balloting/comment resolution 3-12 months) • API corporate membership is not a requirement for participation on API standardization committees 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

12. Requirements for Standards Committee Membership • Be technically proficient in a discipline related to the standard • Attend two committee meetings per year • Agree to work on committee business such as standards revisions and technical inquiries • Have the support of company management to participate 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

13. Antitrust Concerns • Standards meetings are gatherings of competing operators, manufacturers, and suppliers • U.S. antitrust laws impose restrictions on what we can and cannot do: • We can work on standards • We CANNOT share business plans • We CANNOT disparage another company’s products or services • We CANNOT exchange price, cost, or production data 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

14. Antitrust Concerns (cont.) • Development and interpretation of standards are sensitive activities • AVOID: • Anti-competitive activities • Conflicts of interest • Bias or lack of objectivity • The API Antitrust Compliance Guide is available in your new member packet 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

15. API Information Links • Committee Websites – http://committees.api.org/standards/ecs/index.html • Ballot System – http://ballots.api.org/ • Meeting Information – www.api.org/meetings • Catalog of Publications – www.api.org/cat • Document Sales – IHS (800) 854-7179 or www.ihs.com 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

16. API Standards Contact Information • David Miller, Director, API Standards Program, miller@api.org, (202) 682-8159 • Roland Goodman, Manager Upstream Standards, goodmanr@api.org, (202) 682-8571;SC 2, SC 8, SC 19, SC 20 • Ed Baniak, Senior Standards Associate, baniake@api.org, (202) 682-8135;SC 6, SC 11, SC 17, SC 18 • Brad Bellinger, Senior Standards Associate, bellingerb@api.org, (202) 682-8073;SC 5, SC 10, SC 13, SC 15 • Carriann Kuryla, Program Assistant, kurylac@api.org, (202) 682-8565;ballot system, rosters updates, website • Gerardo Uria, Manager - Monogram/APIQR, uriag@api.org, (202) 682-8522;Monogram program administration • Chip Evans, Global Services Manager, evanst@api.org (713) 964-2662;Monogram program applications 1220 L Street, NW • Washington, DC 20005-4070 • www.api.org