Attachment 2 - API Report Tank 1.pdf

Preliminary Report

PRELIMINARY INSPECTION REPORT

API 653 OFF-STREAM INSPECTION

Client ECC Romania

Tank Number TK1

Location Mihail Kogălniceanu, Romania

Project Number 3-4000-10970

Report Number FR-40-MIH-TK1-20170930-0

Revision Number 0

Inspection Date September 25, 2017 till September 26, 2017

Revision Date September 30, 2017

Client: Name: ECC Romania ROSEN Project No.: 3-4000-10970 Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

This document is classified as confidential ROSEN · page 2 of 54

ROSEN Europe B.V.

NDT Diagnostic Zutphenstraat 15 7575 EJ Oldenzaal Netherlands

Phone +31 (0) 541 671 477 Fax +31 (0) 541 671 130 bsilva@rosen-group.com www.rosen-group.com

Prepared by

L.M.E. Schmidt API 653 Tank Inspector, Cert. no. 62883 API 570 Piping Inspector, Cert. no. 38038 STI SP001 Cert. No. AC 44157 EEMUA 159 Tank Assessor, Cert. no. 54663 UTT level II, Cert. No. C14021003

Checked by

Ivo Peddemors API 653 Tank Inspector, Cert. no. 44333 STI SP001 Cert. No. AC 44075 EEMUA 159 Tank Assessor, Cert. no. 10ND/10TA/151 UT level II, Cert. No. N30381

Approved by

Bibiana Silva Project Manager

0 30-Sep-2017 54 Preliminary Report L.M.E. Schmidt

Rev. Date Pages Description Prepared by Checked by Approved by

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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TABLE OF CONTENTS

1 MANAGEMENT SUMMARY 5

1.1 Actions/recommendations 8

1.2 Corrosion rates and next inspection date 9

1.2.1 Next inspection date

2 INTRODUCTION 12

2.1 General 12

2.2 References 12

3 TANK DETAILS 13

4 SAFETY REPORT 16

4.1 Tank Isolation 16

4.2 Safe Entry 16

4.3 Roof Support 16

4.4 Falling Object Hazards 17

4.5 Tripping and Slipping Hazards 17

4.6 Roof Plate Thickness 17

4.7 Stair and Walkway 18

5 BOTTOM INSPECTION REPORT 19

5.1 Cleaning of Tank Bottom 19

5.2 Bottom Plate Construction 19

5.3 Bottom Lining 20

5.4 Bottom Plate Condition 20

5.5 Bottom Plate Condition Outside Tank 21

5.6 Condition of Bottom Welds 22

5.6 Condition of Bottom Welds Continued 23

5.7 Bottom Plate Settlement 24

5.8 Bottom Sump 24

5.8 Bottom Sump Continued 25

5.9 Bottom Attachments 25

5.9 Bottom Attachments Continued 26

5.10 Cathodic Protection of Tank(bottom) 27

6 SHELL REPORT 28

6.1 Shell Construction 28

6.2 Shell Exterior Condition 29

6.3 Shell Interior Condition and Liner 30

6.4 Wind Girders, Shell Stiffeners and Curb Angle 31

6.5 Shell Appurtenances 32

6.6 Foundation / LDS 33

6.6 Foundation / LDS Continued 34

7 FIXED ROOF REPORT 35

7.1 Fixed Roof Type 35

7.2 Fixed Roof Plate Condition 36

7.3 Fixed Roof Supports 37

7.4 Fixed Roof Appurtenances 37

7.5 Fixed Roof Appurtenances Continued 38

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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7.4 Fixed Roof Appurtenances Continued 39

7.5 Roof-to-Shell Joint 39

8 INTERNAL EQUIPMENT 40

8.1 Diffusers/Air Rolling Systems 40

8.2 Roof Drains 40

8.3 Internal Piping 41

8.4 Internal Floating Cover (IFC) 42

9 EXTERNAL EQUIPMENT 43

9.1 External Piping and Valves (secondary containment area) 43

9.1 External Piping and Valves (secondary containment area) Continued 44

9.2 Access Structure 45

9.3 Pressure - Vacuum Vents and Breather Valves 46

9.4 Level Alarm System 47

9.5 Site and Dike Inspection 49

9.5 Site and Dike Inspection Continued 50

9.6 Fire Fighting Equipment 51

9.7 Grounding of Tank and auxiliary equipment 52

9.8 Tank Instruments 53

10 ABBREVIATIONS 54

APPENDIX A: TANK BOTTOM RESULTS

APPENDIX B: MEASUREMENT RESULTS

APPENDIX C: COMPLIANCE CALCULATION RESULTS

APPENDIX D: API 653 CHECKLIST

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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1 MANAGEMENT SUMMARY

General The condition of tank 1, located within the containment area (Facility number P7005) and within at the Bulk Fuel Point , at the 34th BDE Base in Mihail Kogălniceanu, Romania has been inspected by the Survey Engineer(s) by means of a Detailed Visual Inspection (DVI) in combination with necessary NDT equipment. This DVI includes inspection of the tank exterior and interior as required for an API653 compliance check. Evidence of leaks, shell distortions, signs of settlement, corrosion, condition of the foundation, paint coatings, insulation systems, and appurtenances have been documented for follow-up action by the authorized API 653 inspector if deemed necessary. The survey has been concluded on 25 and 26 September, 2017. This section provides a summary of the inspection findings. Finding details are reported in this document under correspondent section.

Variant name / location / photographs / conversion For the tank’s north direction, manhole A1 has been used, this does not correspond with the geographical North.

Pictures shown in this report were edited using image-processing application to enhance visibility and richness of detail.

Measurements were taken in metric values (SI). Conversion to US values, where necessary, were made using 1mm = 0.03937“, 1m = 3.2808`. US values in [Brackets].

General Condition Tank 1, is a steel Aboveground Storage Tank (AST) with the intended service of the storage of JP-8(F- 34). Since construction in 2009 the tank has not yet been in service. The tank is resting and a concrete ring beam and has an Under Tank Leak Detection installed. The bund floor of the secondary containment area is constructed out concrete. As per received design drawing there is no liner installed in the secondary containment area. The concrete wall 1.6m high and floor of the secondary containment area are cracked at several locations and are therefore not considered impermeable.

The tank has a diameter of 9.55m and a height of 11.864m.

The design is API 650 10th edition addendum 3, including Appendixes B, E, F, H, I. according the nameplate present. Assumption is that all NDT has been performed during construction.

It has been noticed that the tank is not equipped with an internal floating cover nor independent fire-fighting equipment on the tank and / or secondary containment area.

Brittle Fracture consideration The lowest recorded temperature at Constanta weather station: 14 m.a.s.l (meter above sea level., 21.0 km away from Mihail Kogălniceanu level is -20.3 degrees Celsius. (Source: YR.no) The tank is designed conform API 650 10th edition, 3rd addendum. Therefore the assumption is that the brittle fracture considerations have been taken in account during the design of the tank. Furthermore the brittle fracture assessment conform API 653 fig 5.1 indicates that there is a low risk of brittle fracture. Also when applying a LODMAT of -30°C Degrees at the request of ECC the risk is stated as low. Therefore Rosen does not see the need to perform a brittle fracture assessment against European Codes as request by ECC especially there the tank is designed conform API 650 10th edition, 3rd addendum.

Note: The Design Metal Temperate is not the same as the out-side air temperature, when a tank contains product the tank shell will have a temperature between the out-side air temperature and product temperature.

Seismic Load:

According to the nameplate this tank has been constructed in accordance with API 650 10th edition addendum 3, including Appendixes B, E, F, H, I. Therefore it is assumed that the Seismic design of storage tanks has been applied. The inspection and NDE performed did not indicate a change has occurred from the original physical condition of the tank and therefore it can be assumed that the seismic evaluation which has been applied during the design phase is applicable.

For further details see the separate report Seismic Assessment of Tank 1.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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Safety Tank was electrically isolated and the valves were in closed position and no safety concerns observed.

Bottom The bottom was sufficient clean to perform a visual and a MFL inspection.

There is a butt welded annular ring installed and the bottom plate rows are lap welded. The bottom plates within one and the same row are lap welded.

The bottom has been inspected by means of an MFL/EC scan (ROSEN TBIT). In total, zero (0) metal loss indications have been recorded in the bottom of the tank, exceeding the reporting threshold of 20%t metal loss. Assessment has shown that the repair threshold is 52%t metal loss for the bottom plates and 53%t metal loss for the annular plates, this means that the tank bottom is in compliance with API 653 at the time of inspection. The liner is in a good condition, and no limitations for continued service have been observed. Taking the thin film liner and the leak detection system into account, no repairs are required for a next service period of 5 years. Refer to Appendix A.

The bottom projection has a drip ring installed to prevent rain water penetrating underneath the tank bottom. Minor coating damage observed to the external bottom projection, only the top layer is affected.

In agreement with the ECC representative it has been agreed, that no magnetic particle inspection (MPI) will be performed on the Corner Weld and the sump weld, due to the applied liner on these welds.

The welds have been visually inspected with the liner still applied. Generally the welds appear to be in a good condition. Except at one are on the internal bottom-to-shell weld there is a section over a length of ~ 1320mm were there is undercut / remaining slag present. The on-site ECC representative has been made aware of this. It is recommended to remove the undercut / slag by means of grinding and perform MPI , and weld profiling measurements afterwards to assure no cracks are present in the area and the weld profile meets the requirements of API 650 section 5.1.5.7.

Furthermore there are two (2) intersections were the weld spacing between the butt welded vertical shell weld and the butt welded radial annular plate weld is less or equal to 5t the bottom shell course thickness.

API does not state a minimum required weld spacing as it does for adjacent shell courses ( See API

5.1.5.2 Vertical Shell Weld). Therefore the design is deemed acceptable.

The measurements of the internal and external bottom projection are within acceptable limits of API 653 section 4.4, nevertheless minor coating failure has been observed to the external bottom projection.

A laser survey has been performed to measure the bottom slope and edge settlement. All measurements are within API 653 rejection limits.

The sump is covered with a lining, which is in good condition. UT spot measurements did not reveal wall thinning of the bottom sump.

The internal piping supports are equipped with a bearing pads. Not at all bearing pads the minimum weld spacing requirements were taken in consideration.

The tank bottom is not equipped with a cathodic protection system. The tank has 4 earth cables ø8.0mm connected, unknown when the last annual resistance check has been performed.

Shell The shell is constructed out of eight (8) butt welded steel plates. UT spot measurements did not reveal any general wall thinning.

Assessment has shown that the shell is strong enough to withstand the liquid load of the stored the product (and during hydro test) when the tank is completely filled (spec. gravity product: 0.84, joint efficiency factor: 1.0).

The shell is coated internal and external form the inside. The coating is in a good condition except at the high and high-level openings, localized coating damage with starting surface corrosion has been observed from the tank floor.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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No anomalies have been observed to the curb angle. Assessment has shown that the tank does not require intermediate wind stiffeners.

Shell appurtenances attached to the shell are in good condition. UT spot measurements did not reveal any general thinning.

Localized minor coating failure has been observed to the nozzle neck, flanges and reinforcing plates of the manholes. The rust level has been estimated to be Ri2 according to ISO 4628-3, which is described as “no anomaly”.

Were reinforcement plates have been applied they are equipped with tell-tale holes of ø 6.0mm, however the reinforcement plate of the both man ways or constructed out of two segments, it is unknown if the butt weld connecting both segments is a full penetration weld and has fused with the original shell plate. The upper segment does not have a tell-tale hole. .

The foundation has a height of ~600mm (2ft) and is expected to be in a good condition since the tank has not been in service yet. The concrete ring beam is not visible since the foundation is sloped with compacted sub-grade and paved with concrete.

Fixed Roof Minor localized coating failure and starting corrosion was noted on the roof deck and appurtenances. The Rust level has been estimated to be Ri2 according to ISO 4628-3, which is described as “no anomaly”.

UT spot measurements did not reveal wall thinning of the roof deck and appurtenances plates. During the inspection it has been observed that the roof deck plates are constructed in such way that condense water may entrap in the crevice of the overlap to the underside of the tank roof.

The Tank roof is equipped the following appurtenances: One (1) 24” free vent, one (1) 35½” manhole, four

(4) rectangular circulation vents 19*27½”, one (1) 8” blind nozzle, two (2) 8” sample hatches of which one

(1) is installed on the cover-plate of the manhole.

Assessment has shown that the roof-to-shell weld is not frangible. As per API 2000 emergency venting shall be installed if a tank is not frangible, due to the presence of the four (4) rectangular Circulation vents 19*27½” the emergency venting requirements are met.

The roof structure has been visually inspected from the ground floor. No distortion or damaged members of the roof was observed. Taking into account that the roof is internally coated and no corrosion has been observed form the roof plates. The inspector does not see the necessity of further detailed investigation of the roof structure.

Internal Equipment The diffuser is made from carbon steel and has minimum a thickness of ~7.5mm. No signs of degradation have been observed.

Ultrasonic spot measurements did not reveal major wall thinning, minor deviations were observed during the ultrasonic measurements presumably due to milling tolerances. Coating appears in good condition.

Although there are circulation vents present, the tank is not equipped with an internal floating cover.

External Equipment On the external piping system (inlet, outlet, pressure relieve system and water draw-off piping) the following observations have been made:

- Minor localized coating failure and starting corrosion with minor metal loss 0.5mm deep is present.

- The wire-seal of the 1¾RPV’s of the outlet is are damaged, unknown if the PRV is tripped or that only the wire-seal is broken.

- Assumption is that all valves installed are conform the received design drawing.

The access structure to the secondary containment is in good and safe condition. Nevertheless the grating of the walk-ways is not anchored.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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The hinges of the sample hatches are not “running” free.

The davit of the man-way covers are not grease

The free vent and circulation vents are equipped with a screen to prevent foreign objects entering the tank and the maze mesh meets the API requirements.

The reinforcement plates on the tank roof are equipped with telltale hole, due to the “horizontal pane” of the reinforcement plate rain water can entrap and cause crevice corrosion to the roof deck plate.

The tank is equipped with a low, high and high-high level switches. In the event the high-high level is reached an alarm will sound at the CCR. Unknown when the last function test has been performed.

The tank is resting and a concrete ring beam and has an Under Tank Leak Detection installed. The bund floor of the secondary containment area is constructed out concrete. As per received design drawing there is no liner installed in the secondary containment area. The concrete wall 1.6m high and floor of the secondary containment area are cracked at several locations and are therefore not considered impermeable. Were the import and export piping penetrate the bund wall there is no jacket pipe present and also no link-seal. Light vegetation was noticed within the secondary containment area.

The tank is not equipped with fire-fighting equipment but has a nozzle on the top-shell course for installation of foam piping.

Four grounding cables are equally spaced attached to the first shell course.

The light bulb at the top landing platform of the staircase has water ingress. Lights were not activated when the inspection was performed during day-time.

1.1 Actions/recommendations

Mandatory Repairs Group 1 – Required repairs to return the facility to service:

The following items below are directly structural integrity related repairs and require repair prior the tank can return to service.

1) No structural integrity related concerns were observed during the inspection.

The following items below are not directly structural integrity related repairs but are repairs / actions to allow safe operation of the tank; taking in consideration that the tank will be used to store JP-8 (F-34).

2) Install an independent fire-fighting system for the tank as well as for the secondary containment area.

3) Perform annual resistance checks of the Earthing. The total resistance from the tank to earth potential should not exceed approximately 25 Ohms as per API 575 3rd edition section 8.2.5., also see API 545.

4) Install an Internal Floating Cover to meet the local emission legislation and to minimize the explosion hazard in the vapor space. USACE - This item will not be included in project. Item previously installed via separate task order.

5) Perform inspection / function test the PRV with the damaged wire-seal at the thermal relieve system of the out-let piping.

Mandatory Repairs Group 2 – Repairs that can be performed while the facility is in service The following items below are directly structural integrity related repairs and require repair prior the tank can return to service.

6) No structural integrity related concerns were observed during the inspection.

The following items below are not directly structural integrity related repairs but are repairs / actions to allow safe operation of the tank; taking in consideration that the tank will be used to store JP-8 (F-34).

7) Perform repairs to the bund wall and floor of the secondary containment area, since in its current condition it is not deemed impermeable. Detailed assessment has been made by ECC prior to the API 653 inspection.

8) Consider to apply a jacket sleeve with the use of a link-seal at bund wall penetrations.

e7ppemlt Line e7ppemlt Line e7ppemlt Line e7ppemlt Line e7ppemlt Line e7ppebmp Line e7ppebmp Line e7ppebmp Line e7ppebmp Typewritten Text Contractor to correct any ground resistance deficiencies.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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Recommended Repairs: – Repairs recommended but not required to return the facility to service.

9) It is recommended to remove the undercut / slag by means of grinding and perform MPI , and perform weld profiling measurements afterwards to assure no cracks are present in the area and the weld profile meets the requirements of API 650 section 5.1.5.7t at the west side of the tank ( annular plate 15 and 16).

10) Give service to the sample hatches, grease rotating parts.

11) Grease the Davits of the man-way’s.

12) Remove loose coating and surface corrosion to the external as well internal tank bottom / shell / roof including all appurtenances and re-apply protective coating by means of localized coating repair.(~ 5m2) as well to the piping system within the secondary containment area.

13) Install one telltale hole in each upper segment of the two reinforcement plates of the man-ways on the tank shell.

14) Seal the tell-tale holes on the reinforcement plates present on the tank roof since water may entrap and cause crevice corrosion. During routine inspection by terminal personnel the bolts shall be remove and the telltale hole shall be checked for signs of leakage, after the inspection the bolts shall be installed again.

15) During the routine inspections the leak detection system should be checked whether product is in the system or not and this crack should be monitored too. USACE - This item will not be included in project. Item not required.

16) Perform maintenance / function test of the all the level switches.

17) Perform maintenance / function test of all rotating equipment prior to taking the tank into service.

18) It’s recommended to MPI the two (2) intersections were the weld spacing between the butt welded vertical shell weld and the butt welded radial annular plate weld. It this is an uncommon design.

19) Install anchorage at the grating of the walk-way into the secondary containment area.

20) Accept deviation from design code or replace none compliant bearing pads for meeting the requirements of API 650 / 653. USACE - Non-compliant bearing pads shall be replaced.

21) Remove vegetation from the secondary containment area.

22) Remove water from light fixture at the top land of the staircase, replace seals of light fixtures and perform function test of lighting (E&I).

Future Recommended Repairs: – Repairs that can be performed at the next inspection.

23) Perform regular (e.g. once every year) UT inspection of the roof deck plates at the “lap” to determine if crevice corrosion is occurring at the “lap” area.

24) After the next off-stream inspection perform a corrosion assessment and remaining life calculation for the bottom. If severe corrosion is found at the next inspection is should be considered to install a Cathodic Protection System.

1.2 Corrosion rates and next inspection date

Shell corrosion rate and life expectancy (API 653, sect. 4.3.3)

C o u r s e N o

O ri g in a l W

T

[m m m in

W e a s.

m m

C R m e a s

[m m

/y

W t m in a llo w a b le

[m

C A m m

R L

C

A /C

R m a x

[y e a rs

E xt e rn a l

In sp e ct io n

[y a rs

U in sp e ct i o n

[y a rs

8 8.0 7.6 0.05 2.54 5.06 81.0 25.3 50.6

7 8.0 7.8 0.025 2.54 5.26 84.2 52.6 105.2

6 8.0 7.5 0.063 2.54 4.96 79.4 19.8 39.7

5 8.0 7.6 0.050 2.54 5.06 81.0 25.3 50.6

4 8.0 7.6 0.050 2.54 5.06 81.0 25.3 50.6

3 8.0 7.6 0.050 2.54 5.06 81.0 25.3 50.6

2 8.0 7.6 0.050 2.54 5.06 81.0 25.3 50.6

1(bottom) 8.0 7.5 0.063 2.54 4.96 79.4 19.8 39.7 e7ppemlt Line e7ppemlt Line e7ppebmp Cross-Out e7ppebmp Cross-Out e7ppebmp Cross-Out

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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Maximum

CR

(mm/yr):

0.06 Maximum

Allowable:

5 15

Bottom corrosion rate and life expectancy (API 653, sect. 4.4.5)

Note: a conservative general corrosion rate of 0.05 mm/yr has been used.

Remaining Life Assessment as per ROSEN (note 3) Internal Corrosion Assessment Bottom Annular M ax. wall loss measured %t 20% M ax. wall loss measured %t 20%

M ax. wall loss measured mm 1.6 M ax. wall loss measured mm 2.4

RWT prior repair mm 6.4 RWT prior repair mm 9.6

Number o f years installed years 8 Number of years installed years 8

Corrosion Rate CR (pitting) mm/y 0.200 Corrosion Rate CR (pitting) mm/y 0.300

Corrosion Rate CR (general) mm/y 0.05 Corrosion Rate CR (general) mm/y 0.050

Actual Corrosion Rate mm/y 0.250 Actual Corrosion Rate mm/y 0.350

Corrosion Rate used mm/y 0.350 Corrosion Rate used mm/y 0.350

Rejection limit WTs,min mm 1.27 Rejection limit WTa,min mm 4.32

Repair threshold applied 50% Repair thresho ld applied 50%

RWT after repair mm 6.4 RWT after repair mm 9.6

Corrosion Allowance CA mm 5.1 Corrosion A llowance CA mm 5.3

RL (bo ttom), max years 14.7 RL (annular), max years 15.1

Safety Facto r є[0,1] 1 Safety Facto r є[0,1] 1.0

M II (Internal bottom) years 14.7 M II (Internal annular) years 15.1

External Corrosion Bottom Annular M ax. wall loss measured %t 20% M ax. wall loss measured %t 20%

M ax. wall loss measured mm 1.6 M ax. wall loss measured mm 2.4

RWT prior repair mm 6.4 RWT prior repair mm 9.6

Number o f years installed years 8 Number of years installed years 8

Corrosion Rate CR (pitting) mm/y 0.200 Corrosion Rate CR (pitting) mm/y 0.300

Corrosion Rate CR (general) mm/y 0.050 Corrosion Rate CR (general) mm/y 0.050

Actual Corrosion Rate mm/y 0.250 Actual Corrosion Rate mm/y 0.350

Corrosion Rate used mm/y 0.350 Corrosion Rate used mm/y 0.350

Rejection limit WTs,min mm 1.27 Rejection limit WTa,min mm 4.32

Repair threshold applied mm 50% Repair thresho ld applied mm 50%

RWT after repair mm 6.4 RWT after repair mm 9.6

Corrosion Allowance CA mm 5.1 Corrosion A llowance CA mm 5.3

RL (bo ttom), max years 14.7 RL (annular), max years 15.1

Safety Facto r є[0,1] 1 Safety Facto r є[0,1] 1.0

M II (External bottom) years 14.7 M II (External annular) years 15.1

Abreviations RWT Prior Repairs: minimum remaining wall thickness at the time of the inspection.

CR: Corrosion Rate RWT After Repairs: minimum remaining thickness of the features that were not repaired.RWT after repairs : Remaining Wall Thickness of non-repaired features

RL: Remaining Life CA: Corrosion Allowance MII: Maximum inspection Interval

Note: The max. wall loss measured refers to the average o f the 5 deepest features. These measurements are used to calculate the corrosion o f the complete tank bottom internal and external.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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1.2.1 Next inspection date

The recommended next inspection date are only valid if the required and recommended actions described in this document are followed up and/or installed properly.

Inspection frequency based on API 653, chapter 6. Local authorities or national legislation may require a different inspection period.

Periodic in-service inspection by facility personnel (API 653, sect. 6.3.1):

Every month.

External inspection by a certified inspector (API 653, sect. 6.3.2):

September, 2022.

Ultrasonic thickness inspection of the shell (API 653, sect. 6.3.3):

September, 2032.

Internal inspection by a certified inspector(API 653, sect. 6.4):

September, 2027.

Based on the fact that the tank has not yet been in-service, the current inspection is seen as a base-line inspection and the next inspection as the initial inspection after 10 years as per API 653 section 6.4.2.1

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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2 INTRODUCTION

2.1 General

This inspection report describes the API 653 tank inspection survey carried out by Rosen Europe for ECC at tank 1, located within the secondary containment area (Facility number P7005) and within at the Bulk Fuel Point , at the 34th BDE Base in Mihail Kogălniceanu, Romania on September 25th and 26th, 2017.

This inspection report should be read in conjunction with API 653, particularly if the reader is not familiar with this Standard and the terms used in it, as some terms are particular to the Standard. We have exercised and applied API 653 in good faith and provide/present all details in accordance with this Standard.

However, the API 653 is not to be interpreted as approving, recommending, or endorsing any specific design or limiting the methods of inspection, repair, alteration, or reconstruction. Deviations to this standard will only be applied when seems necessary and will be conform one of the standards as given in section 2.2 of this report and after consulting the Customer. In all cases, the technical integrity of the tank under consideration will be safeguarded.

Evaluation for structural integrity of areas that do not meet the Standard is often case-by-case and depends on the available information. For information not available or provided, assumptions have been made on basis of best experiences within our Company. Where necessary, our engineers will recognize and report whether a more dedicated (tank construction) engineering judgment is required. Additionally, we are receptive to any request from the Customer to reprocess the tank data in accordance with their differing interpretation of the API 653 standard.

2.2 References

The latest editions of the following standards were used during the inspection and for the preparation of this report:

1) API RP 575, "Inspection of Atmospheric and Low-Pressure Storage Tanks"

2) API RP 651, “Cathodic Protection of Aboveground Petroleum Storage Tanks”

3) API RP 652, “Lining of Aboveground Petroleum Storage Tank Bottoms”

4) API 653, "Tank Inspection, Repair, Alteration and Reconstruction”

5) API 2015, "Safe Entry and Cleaning of Petroleum Storage Tanks"

6) API 2000, “Venting Atmospheric and Low-Pressure Storage Tanks”

7) TI X147 NDT Instruction UT-01, ROSEN procedure, “Procedure for Wall Thickness

Measurements of Steel.

8) TI F332 NDT Instruction MFL-01 (TBIT), ROSEN procedure, “Procedure for the flux leakage examination of ferromagnetic tank bottom sketch and annular plates using Rosen’s tank Bottom inspection Tool (TBIT)”.

9) EN 13018, “Non-destructive testing – Visual testing – general principles”

10) EN 13927, “Non-destructive testing – Visual testing – Equipment”

11) EN 9934, “Non-destructive testing – magnetic particle testing – parts 1 to 3”

12) EN 1593, “Non-destructive testing – Leak testing – Bubble emission techniques”

13) EN14015, The European Standard EN 14015, “Specification for the design and manufacture of site built, vertical, cylindrical, flat-bottomed, above ground, welded, steel tanks for the storage of liquids at ambient temperature and above”

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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3 TANK DETAILS

- Overview of tank 1, Facility number P7005 -

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

This document is classified as confidential ROSEN · page 14 of 54

The following is a brief summary of the tank details. Other parameters are included in the document where relevant.

General

Tank number 1 Facility P7005

Tank type FRT

Design Standard API 650 10th edition addendum 3, including Appendixes B, E, F, H, I.

Construction year 2009

Manufacture Havatek Makina Sanayi Ve

Ticaret A.Ş.

Name plate present? [y/n] Yes

As built drawings available? [y/n] Yes NDT results from erection are not present

Dimensions

Diameter [m] 9.550m [31` 3.3ʺ]

Bottom surface [m²] ~71.63 m² [~771.02 ft2]

Height [m] 11.864m [~38` 9.2ʺ]

Maximum filling height [m] 10.900m [~37` 7.6ʺ]

Foundation

Type Concrete Ring

Leak detection present [y/n] Yes

Bottom

Installed year 2009

Nominal thickness plates [mm] 8.0 [0.315 ʺ]

Construction Lap-welded

Annular Ring Present [y/n] Yes

Annular Nominal Thickness [mm] 12.0 [0.472”]

Annular Plate Width [mm] 875 Minimum width

Internal Coating [y/n] Yes Thin film coating

Shell

Main Material ASTM S 275 JR

Construction Butt-welded

Internal Coated? [y/n] Yes

Height/Thickness Course 8 [m/mm] 1.480 / 8.0

Height/Thickness Course 7 [m/mm] 1.480 / 8.0

Height/Thickness Course 6 [m/mm] 1.480 / 8.0

Height/Thickness Course 5 [m/mm] 1.480 / 8.0

Height/Thickness Course 4 [m/mm] 1.480 / 8.0

Height/Thickness Course 3 [m/mm] 1.480 / 8.0

Height/Thickness Course 2 [m/mm] 1.480 / 8.0

Height/Thickness Course 1 [m/mm] 1.480 / 8.0

Wind Stiffener Installed? [y/n] No

Top curb angle dimensions [mm] 70x70x6.9mm

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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Roof

Roof type Cone

Spacing between radial beams 1.87m

Construction Lap-welded

Roof slope [°] 6.3°

Internal coated [y/n] Yes

Operational

Product Stored JP-8 (F-34) Jet Fuel

Gravity of Product 0.84

Storage Temperature [°C] ambient

Pressure / Vacuum range [mbar] 7.5 / 2.5

Anchored [y/n] Yes, 20x M32 Bolts

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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4 SAFETY REPORT

4.1 Tank Isolation

(API 2015 & API 653, Table C-2)

Visual Inspection Blinding of lines

Electrical disconnection

Line valves closed

Pump Electrically disconnected Comments: None.

Recommendations: None.

4.2 Safe Entry

(API 2015 & API 653, Table C-2)

Visual Inspection Confined Space Entry Permit

Vapor and gas freeing

Cleanliness

Adequate venting

Comments: Tank has never been in-service since erection.

Recommendation: None.

4.3 Roof Support

(API 2015 & API 653, Table C-2)

Visual Inspection Adequate fixed roof support structure

Adequate floating roof support legs

Comments: None.

Recommendations: None.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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4.4 Falling Object Hazards

(API 2015 & API 653, Table C-2)

Visual Inspection Falling scale

Product in appurtenances

Corrode through roof structure

Loose Items Comments: Loose threaded end-cap observed on staircase at high and high-high level switches. Loose item was taken to base of the tank by Rosen Engineers Recommendations: When disconnection end-caps, reconnect them afterwards to prevent them from becoming a loose items with a potential hazard for falling objects.

4.5 Tripping and Slipping Hazards

(API 653, Table C-2)

Visual Inspection Obstructions

Presence of ice

Liquids on deck plate

Comments: None.

Recommendations: None

4.6 Roof Plate Thickness

(API 653, Table C-2)

Visual Inspection Checked plate thickness before accessing

Ultrasonic Thickness Gauge roof.

Checked support structure before from tank floor before accessing roof.

Comments: None.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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4.7 Stair and Walkway

(API 653, Table C-2)

Visual Inspection Check stair-walkway before access

Hammer Test Checked structural welds

Ultrasonic Thickness Gauge

Comments:

Access structures of the tank in good and safe condition.

The access structure to the secondary containment is in good and safe condition. Nevertheless the grating of the walk-ways are not anchored.

Recommended Repairs: – Repairs recommended but not required to return the facility to service.

Install anchorage at the grating of the walk-way into the secondary containment area.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5 BOTTOM INSPECTION REPORT

5.1 Cleaning of Tank Bottom

(API RP 575, Section 7.1 Preparations for Inspections)

Visual Inspection Grid-blasted

Washed

Scale present

Tack welds present

Comments: The bottom was sufficient clean to perform a visual and a MFL inspection.

Recommendations: None.

5.2 Bottom Plate Construction

(API 650, Section 5 - Design)

Visual Inspection Lap welded Sketch plates

Butt welded Sketch plates

Riveted Sketch plates

Lap welded Annular ring

Butt welded annular ring

Riveted Annular pates

Patch plate present

Comments: There is a butt welded annular ring installed and the bottom plate rows are lap welded. The bottom plates within one and the same row are butt welded.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.3 Bottom Lining

(API RP 652)

Visual Inspection No Lining

Ultrasonic Thickness Gauge Thick film lining (thickness ≥ 20mils=0.51mm)

Coating Thickness Gauge Thin film lining (thickness < 20mils=0.51mm)

Holiday tester Epoxy lining

GRE lining

Installation date of liner

Warranty time of liner

Found:

Holes Blisters Bulges

Cracking Mech. Damage other openings

Comments: The liner is in a good condition, and no limitations for continued service have been observed.

Recommendations: None

5.4 Bottom Plate Condition

(API 653, Section 4 - Suitability for Service Section 4.4, page 4-11)

TBIT Inspection (MFL) Internal corrosion

Visual Inspection External corrosion

Ultrasonic Thickness Gauge Heavy pitting

Light pitting

Heavy Scale

Light scale

General thinning

Tack welds present

Lamination

Comments: The bottom has been inspected by means of an MFL/EC scan (ROSEN TBIT). In total, zero

(0) metal loss indications have been recorded in the bottom of the tank, exceeding the reporting threshold of 20%t metal loss. Assessment has shown that the repair threshold is 52%t metal loss for the bottom plates and 53%t metal loss for the annular plates, this means that the tank bottom is in compliance with API 653 at the time of inspection. The liner is in a good condition, and no limitations for continued service have been observed. Taking the thin film liner and the leak detection system into account, no repairs are required for a next service period of 5 years. Refer to Appendix A Recommendations: None.

Unknown

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.5 Bottom Plate Condition Outside Tank

(API 653, Section 4.4.5.7, page 4-14)

Visual Inspection External corrosion

Ultrasonic Thickness Gauge Coating failure

Bottom to foundation seal damaged

Projection has a welded on rain skirt

Thinning

Comments:

a. The bottom projection has a drip ring installed to prevent rain water penetrating underneath the tank bottom.

b. Minor coating damage observed to the external bottom projection, only the top layer is affected.

Recommended Repairs: – Repairs recommended but not required to return the facility to service:

a) None.

b) Remove loose coating and surface corrosion to the external tank bottom / shell / roof including all appurtenances and re-apply protective coating by means of localized coating repair.(~ 5m2).

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.6 Condition of Bottom Welds

(API 653, Section 4.4.2)

Visual Inspection Corrosion

Vacuum Box test Undercutting

Eddy Current Cracks

Magnetic Particle Arc strikes

Liquid Penetrant Geometrical imperfections

Slag remains under coating

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.6 Condition of Bottom Welds Continued

(API 653, Section 4.4.2)

Comments:

a) In agreement with the ECC representative it has been agreed, that no magnetic particle inspection (MPI) will be performed on the Corner Weld and the sump weld, due to the applied liner on these welds. The welds have been visually inspected with the liner still applied.

Generally the welds appear to be in a good condition.

b) Except at one are on the internal bottom-to-shell weld there is a section over a length of ~ 1320mm were there is undercut / remaining slag present. The on-site ECC representative has been made aware of this.

c) There are two (2) intersections were the weld spacing between the butt welded vertical shell weld and the butt welded radial annular plate weld is less or equal to 5t the bottom shell course thickness. API does not state a minimum required weld spacing as it does for adjacent shell courses ( See API 5.1.5.2 Vertical Shell Weld). Therefore the design is deemed acceptable.

Recommended Repairs: – Repairs recommended but not required to return the facility to service:

a) None.

b) It is recommended to remove the undercut / slag by means of grinding and perform MPI , and perform weld profiling measurements afterwards to assure no cracks are present in the area and the weld profile meets the requirements of API 650 section 5.1.5.7t at the west side of the tank ( annular plate 15 and 16).

c) It’s recommended to MPI the two (2) intersections were the weld spacing between the butt welded vertical shell weld and the butt welded radial annular plate weld. There this is an uncommon design.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.7 Bottom Plate Settlement

(API 653, Annex B)

Visual Inspection Edge settlement

Laser Evaluation Depression

Differential Settlement Survey Voids under bottom

Magnetic Particle Bulges

Liquid Penetrant Areas with minor drainage problems

Uneven settlement of the shell

Cone down bottom

Cone up bottom

Comments: A laser survey has been performed to measure the bottom slope and edge settlement. All measurements are within API 653 rejection criteria.

Recommendations: None.

5.8 Bottom Sump

(API 653, Annex C, C.2.3)

Visual Inspection Internal corrosion

Ultrasonic Thickness Gauge External corrosion

Magnetic Particle Heavy pitting

Liquid Penetrant Light pitting

Hammer Test Heavy Scale

Light scale

General thinning

Dirt and debris

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.8 Bottom Sump Continued

(API 653, Annex C, C.2.3)

Comments: The sump is covered with a lining, which is in good condition. UT spot measurements did not reveal wall thinning of the bottom sump.

Recommendations: None.

5.9 Bottom Attachments

(API 653, Annex C)

Visual Inspection Check columns for corrosion up to 6 feet (1.8 m)

Ultrasonic Thickness Gauge Bearing pads under fixed roof column bases

Hammer Test Restraining clips welded to bearing pads and not to column bases

Reinforcing pads under all bottom attached brackets, supports and clips

Welded attachments/reinforcing pads not in the critical zone

Attachments/reinforcing pads full seal welded

If pipe columns are present, perform random UT

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.9 Bottom Attachments Continued

(API 653, Annex C)

Comments:

a) The internal piping supports are equipped with bearing pads.

b) Not at all bearing pads the minimum weld spacing requirements were taken in consideration.

Recommended Repairs: – Repairs recommended but not required to return the facility to service:

a) None.

b) Accept deviation from design code or replace none compliant bearing pads for meeting the requirements of API 650 / 653.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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5.10 Cathodic Protection of Tank(bottom)

(API RP 651, API RP 575, API 653 Section 4.4.3)

Comments:

The tank bottom is not equipped with a cathodic protection system. The tank has 4 earth cables ø8.0mm connected, unknown when the last annual resistance check has been performed.

Mandatory Repairs Group 1: – Required repairs to return the facility to service:

The following items below are directly structural integrity related repairs and require repair prior the tank can return to service.

a) No structural integrity related concerns were observed during the inspection.

The following item below is not “directly” a structural integrity related repair but a repair / action to allow safe operation of the tank; taking in consideration that the tank will be used to store JP-8 (F-34).

b) Perform annual resistance checks of the Earthing. The total resistance from the tank to earth potential should not exceed approximately 25 Ohms as per API 575 3rd edition section 8.2.5., also see API 545.

e7ppebmp Line e7ppebmp Typewritten Text Contractor to correct any ground resistance deficiencies.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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6 SHELL REPORT

6.1 Shell Construction

(API 650, Section 5 - Design)

Visual Inspection Butt Welded

Lap Welded

Riveted

Comments:

The shell is constructed out of eight (8) butt welded steel plates. UT spot measurements did not reveal any general wall thinning.

Assessment has shown that the shell is strong enough to withstand the liquid load of the stored the product (and during hydro test) when the tank is completely filled (spec. gravity product: 0.84, joint efficiency factor: 1.0).

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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6.2 Shell Exterior Condition

(API 653, Section 4, Suitability for Service)

Visual Inspection Pit Gauge

Ultrasonic Thickness Gauge Sweep board

Found:

Corrosion Pitting Mechanical Damage

Peaking Banding Settlement

Comments: The shell is coated externally, coating is in good condition.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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6.3 Shell Interior Condition and Liner

(API 653, Section 4, Suitability for Service)

Visual Inspection Pit Gauge

Ultrasonic Thickness Gauge Sweep board

Found:

Corrosion Pitting Mechanical Damage

Peaking Banding Settlement

Grooving damage (floating roofs)

Comments:

a) The shell is coated internal.

b) The coating is in a good condition except at the high and high-level openings, localized coating damage with starting surface corrosion has been observed from the tank floor.

Recommended Repairs: – Repairs recommended but not required to return the facility to service.

a) None.

b) Remove loose coating and surface corrosion to the external as well internal tank bottom / shell / roof including all appurtenances and re-apply protective coating by means of localized coating repair.(~ 5m2).

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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6.4 Wind Girders, Shell Stiffeners and Curb Angle

(API 653, Section 4, Suitability for Service, section 4.3.7, page 4-10)

Visual Inspection

Ultrasonic Thickness Gauge

Pit Gauge

Comments: No anomalies have been observed to the curb angle. Assessment has shown that the tank does not require intermediate wind stiffeners.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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6.5 Shell Appurtenances

(API 653, Section 4, Suitability for Service, Section 4.3.9, page 4-10)

Comments:

a) Shell appurtenances attached to the shell are in good condition. UT spot measurements did not reveal any general thinning.

b) Localized minor coating failure has been observed to the nozzle neck, flanges and reinforcing plates of the manholes. The rust level has been estimated to be Ri2 according to ISO 4628-3, which is described as “no anomaly”.

c) Were reinforcement plates have been applied they are equipped with tell-tale holes of ø 6.0mm, however the reinforcement plate of the both man ways or constructed out of two segments, it is unknown if the butt weld connecting both segments is a full penetration weld and has fused with the original shell plate. The upper segment does not have a tell-tale hole.

Recommended Repairs: – Repairs recommended but not required to return the facility to service

a) None.

b) Grease the Davits of the man-way’s.

b) Remove loose coating and surface corrosion to the external as well internal tank bottom / shell / roof including all appurtenances and re-apply protective coating by means of localized coating repair.(~ 5m2).

c) Install one telltale hole in each upper segment of the two reinforcement plates of the man-ways on the tank shell.

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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6.6 Foundation / LDS

(API 653, Annex B, API RP 575, Section 7.2.3)

Visual Inspection Concrete

Laser Elevation Survey

Found:

Settlement Washed out areas Cracking

Spalling Grade against tank Vegetation

Exposed reinforcing bars

Standing water against tank

Date of Inspection: 25 / 26 September 2017 Revision No.: 0 Tank Number: Tk 1 Location: 34th BDE Base in Mihail Kogălniceanu

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6.6 Foundation / LDS Continued

(API 653, Annex B, API RP 575, Section 7.2.3)

Comments:

The tank is resting and a concrete ring beam and has an Under Tank Leak Detection installed.

The bund floor of the secondary containment area is constructed out of concrete. As per received design drawing there is no liner installed in the secondary containment area.

The concrete wall 1.6m high and floor of the secondary containment area are cracked at several locations and are therefore not considered impermeable. Were the import and export piping penetrate the bund wall there is no jacket pipe present and also no link-seal. Light vegetation was noticed within the secondary containment area.

Mandatory Repairs Group 2 – Repairs that can be performed while the facility…