OPERATIONAL PROCEDURES

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Introduction

URSA is committed to the integrity of every aspect of our operations, including buried and above ground

waterlines. Following is our overview of our INTEGRITY POLICY.

Testing and Certification

1. All URSA waterlines have been tested and passed the “Hydrostatic Test Certification” per COGCC ASME

B31.8 upon construction.

2. Waterlines are tested periodically using the “Hydrostatic Testing Procedure for all HDPE line pipe”

process. (Testing is only done on laterals and lines that are in service for water movement purposes.)

3. URSA uses new quality reliable Ball Valves, Unions, Joints, Flanges, and Piping for all projects.

Water movement Procedures – SOP’s

For every project, there is a written procedure that specifies every detail of the process.

1. Individual project procedure is written every time, that is specific to that project and has to be

approved/filed by authorized URSA representative.

2. Valves/valve sets are numbered/named and color coded for clear identification purposes.

3. Many “hands” are involved with the transfer of water:

a. Sending - Supervisors monitor the sending pumps, lines, pressures when in operation.

b. Receiving – same as sending, Supervisors are present during the operations.

c. Mobile “quality control Supervisor” - runs the line (in between send and receive) and valve sets

to verify that there are no issues, monitor pressures, and ensure no leaks.

d. Many hands – monitor tanks and lines in the sending/receiving locations, and are

communicated with via 2 way radios from Supervisors.

e. Communication – 2 radio frequencies are used and are privately owned and secure for the

Water crew to communicate back and forth

f. Line is de-pressured – bled off during times (mostly nights) where we are not moving water.

g. Waterlines are drained/winterized – when not in use, and locked out

4. Pressure observation – Pressures are observed at all points (start and finish, everything in between) of

the active transfer process, and consider: elevation rises/drops, Temperature, pipe pressure specs,

changes in dimensions, etc..

5. Closed valves/laterals – All non-used lines are locked/tagged out of service, blind flanges and other

measures are taken to ensure that no water is capable of escaping. During a water transfer, these sites

are also monitored.

6. Emergency response plan – Is in place, and details Spill Prevention, Notification protocol, Stopping the

Job, Cleanup, etc..

7. JSA’s – (Job Safety Analysis) are reviewed every day, and detail the above in each meeting.

Ursa Operating: How Do We Control Pipeline Corrosion

Common methods used to control corrosion on pipelines are protective coatings and linings, cathodic protection, materials selection, inhibitors, and coupon monitoring systems.

1. Ursa Operating uses 2 styles of Pipeline coatings to protect the Natural Gas Pipelines

against corrosion depending on the pipeline configuration. (Line Pipe or Bore Pipe)

A. Line Pipe is FBE coated (Fusion bonded epoxy coating) It is an epoxy-based

powder coating that is widely used to protect steel pipe used in pipeline

construction.

B. Bore Pipe is ARO coated (Abrasion Resistant Overlay) Used to protect FBE

mainline coatings for directional drilling, bores, river crossings and other rough

terrain applications.

2. Ursa Operating uses Cathodic Protection to protect their Pipelines.

A. Cathodic protection (CP) is a technique used to control the corrosion of a

metal surface by making it the cathode of an electrochemical cell. A simple

method of protection connects the metal to be protected to a more easily

corroded "sacrificial metal" to act as the anode.

B. In some situations an Impressed Current Cathodic Protection (ICCP) system is

used along with sacrificial metal anodes. These consist of anodes connected

to a DC power source, often a transformer-rectifier connected to AC power.

C. All cathodic protection is checked by a third party inspection company

quarterly.

3. Ursa Operating also uses third party inspection to run chemical tests on produced

liquids for bacteria and pig the pipeline quarterly with biocides to protect the

pipelines from bacterial corrosion.

4. Ursa Operating uses Coupon Monitoring as well to detect loss in metals to help

detect pipeline deterioration.

A. A weighed sample (coupon) of the metal or alloy is introduced into the process,

and later removed after a reasonable time interval. The coupon is then cleaned

of all corrosion product and is reweighed. The weight loss is converted to a

corrosion rate (CR) or metal loss (ML) Coupons are sampled and analyzed

quarterly. If metal loss is detected higher frequency of pipeline treating will

occur.

5. Ursa Operating uses an assortment of products to combat corrosion in the produced

water pipelines.

A. HDPE Poly (4710 Gas) Line pipe is used for most of the Produced Water

Pipelines.

B. Flexsteel Corrosion-resistant SS 316L spooled pipe (1,500 psi 600 ANSI) is

used for elevation issues.

Ursa Operating: How Do We Control Pipeline Corrosion

C. Stainless Steel (316L) is used for most fittings and connections.

Pipeline ROW will be inspected annually. Inspection includes checking for low spots, leakage,

staining, subsidence, pipeline makers, vegetation, erosion, and any other potential items of

concern.

Valve sets are inspected during every pigging operation.