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Northlake WE P1-6-CN 860301 CON-DOR PIPE LINE CO~P~N¥ PHASE VI RELOC~~ Construction Contract and Specifications Larryk~. C,lyn~, P.E. Lake Charles, Louisiana March, 1986 TABLE OF CONTENTS Section I General Specifications Section II Technical Specifications Section III Safety Requirements Section IV Section V Section VI Materials Drawings Instruction to Bidders and Description of Bid Items Exhibit A Uniform Bid Sheets ADDENDUM I Insurance Certificate ADDENDUM II Receipt Certificate of Pipeline and Terminal Safety Manual ADDENDUM III Contractor's Affidavit ADDENDUM IV Memorandum of Agreement SECTION I GENERAL SPECIFICATIONS SECTION I GENERAL SPECIFICATIONS INDEX 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 General Scope Definitions Specifications and Drawings Contractor's Responsibility to Inform Himself Insufficient Instruction Non-Waiver of Defaults Changes in the Work Inspector Contractor's Representative Grades, Lines, Surveys, and Levels Construction Facilities Public Relations and Notice of Injury Cooperation Between Contractors Clean-up Independent Contractor Materials, Tools, and Equipment Furnished by the Company Materials Furnished by Contractor Protection of Material and Finished Work Workmanship Assignability Warranty Project Work Schedule Delays Extension of Time Shutdown Due to Strike or Labor Dispute Force Majeure Company's Right of Termination Payment of Bills Indemnity Insurance Payment to Contractor Ethics; Conflicts of Interest Audits Insolvency Payroll and Other Taxes Permits, Laws, and Regulations Governmental Regulations - Federal SECTION I GENERAL SPECIFICATIONS 1.1 General The Company desires the Contractor to perform the work as described and set forth in the General Specifications (Section I), Technical Specifications (Section II), Safety Requirements (Section III), Materials (Section IV), Drawings (Section V), and Definition of Bid Items (Section VI). It is not the intent of the Company to deviate from customary good engineering practice and, while the Specifications and Drawings herein referred to are intended to be full and complete in themselves, Contractor shall consider himself bound by customary good engineering practice whether referred to specifically or not. 1.2 Scope The work to be performed is set forth in the Specifications, attached exhibits, drawings, and references contained herein and more fully described in Section II, Technical Specifica- tions and Section VI, Instructions to Bidders and Description of Bid Items. 1.3 Definitions Hereinafter, the term "Contractor" shall mean the successful bidder and/or his subcontractors, agents or representatives. Hereinafter, the term "Company" shall mean Con-Dor Pipe Line Co., its subsidiaries, agents or representatives. Hereinafter, the term "Specifications" shall mean Section I, II, III, IV, V and VI hereof together with all exhibits and addendums thereto and all references noted therein which are incorporated into such documents by designation or recital. Hereinafter, the term "Agreement" shall mean the Memorandum of Agreement entered into and between the Contractor and Company which incorporates therein these Specifications. Hereinafter, the term "Final Acceptance" shall mean acceptance in writing by the Company to the Contractor. Such acceptance shall be given after thirty days of continuous satisfactory operation by the Company of the facility herein specified, or thirty days after satisfactory completion of all phases of work covered by this agreement, whichever occurs first. I-1 1.4 Specifications and Drawings These Specifications and Drawings made a part hereof are intended to be mutually cooperative and that which is shown and specified in one and not in the other shall be considered as shown and specified in both. Should a conflict exist between the Specifications and Drawings, Contractor shall request the Company to determine which governs. Contractor shall request such determination prior to execution of the Agreement and his failure to do so will be his consent to be bound by Company's later determination. 1.5 Contractor's Responsibility to Inform Himself It shall be the responsibility of the Contractor to inspect and become familiar with the site or route of the proposed facility and to acquaint himself thoroughly with all condi- tions likely to be encountered in performing the work. 1.6 Insufficient Instruction If, in the opinion of the Contractor, any work shown on the Drawings or called for by these Specifications is insuffi- ciently specified or specified in such a manner as to make it impossible for Contractor to produce first class work, he shall refer same to the Company before proceeding with the work. 1.7 Non-Waiver of Defaults The waiver by the Company at any time of a breach or default in any of the terms or conditions of these Specifications shall not be construed as a waiver of any succeeding breach of the terms or conditions. 1.8 Changes in the Work Company may, without invalidating the Agreement or any bond given thereon, request extra work or make changes by altering, adding to, or deducting from the work. Contractor will be furnished a written change order on each such change. No change, alteration, or deviation shall be made without a written change order signed by both the Contractor's repre- sentative and the Inspector. No claim for extra cost or deduction shall be valid unless supported by a written change order. Payment for extra work, unless otherwise provided for in the change order, shall be made based on either the extra work schedule of the Uniform Bid Sheet, or on the basis of the sum of the following: (1) charges for direct labor in accordance with the Wage Schedule (a part of the Uniform Bid Sheet), (2) actual material costs to be evidenced by invoices plus fifteen I-2 percent for handling, and (3) charges for the use of equipment based on the Schedule of Equipment Rental Rates (a part of the Uniform Bid Sheet). Acceptance by the Contractor of a change order shall not relieve the Contractor of any responsibility for schedule completion and/or the performance of the com- pleted system, except as specified in the change order. 1.9 Inspector The Inspector shall, at all times, have access to the work for the purpose of inspecting, testing, and insuring the satis- factory completion of the work. The Inspector may decide on the amount, quality, acceptability, and fitness of the work and material utilized in the work to be performed by the Contractor. A decision of the Inspector does not, however, constitute the Final Acceptance by the Company of any portion of the project as such Final Acceptance is defined above in Paragraph 1.3, above. 1.10 Contractor's Representative Contractor shall have a designated representative on the job site at all times when work is in progress. Notices given to the Contractor's representative shall be considered as having been given to the Contractor. The Contractor's representative shall have available on the job copies of the plans and Specifications. The Contractor shall advise the Company in writing of the name, address, office telephone number and home telephone number of the Contractor's representative. 1.11 Grades, Lines, Surveys, and Levels The Company shall establish the property lines, any necessary restrictions, and a bench mark, if required. All other grades, lines and levels shall be the responsibility of the Contractor. Contractor shall preserve permanent Company survey corners and elevations. 1.12 Construction Facilities Contractor shall provide and pay for temporary services for power, light, water, and heating required for construction purposes. Contractor shall provide and maintain sanitary accommodations for the use of his employees in a manner that will comply with the requirements and regulations of health departments and of other governmental bodies having jurisdic- tion thereof. The Company will not be responsible for providing shelter, food, water, medical attention, sanitation facilities, or transportation for employees of the Contractor or any of his subcontractors. I-3 1.13 Public Relations and Notice of Injury Contractor shall make all reasonable efforts to maintain good- will among landowners, tenants, lessees, and members of the general public and shall not knowingly violate any rights of such persons in the performance of the Agreement. Should Contractor's operations cause injury to person or persons or damage to public or private property, Contractor shall immedi- ately notify the Inspector and, within twenty-four (24) hours, notify the Company in writing of such injury or damage. 1.14 Cooperation Between Contractors Company reserves the right to perform other work on its premises and to let other contracts in connection with work not contracted for hereunder. Contractor shall cooperate with Company or other contractors in the reasonable execution of their work and will undertake to coordinate his work with theirs. 1.15 Clean-Up Contractor shall keep the premises where work is being per- formed in a neat, clean, and orderly condition. On completion of the work, Contractor shall, at his cost, clear the premises and dispose of waste material and debris in a manner satis- factory to the Inspector. Contractor shall, as directed by the Inspector, haul all materials belonging to the Company to a storage site or the nearest shipping point. Payment for this will be made based on the Wage Rate and Equipment Rental Schedules. Contractor shall remove all of his equipment and material after completion of work. 1.16 Independent Contractor It is agreed that the Contractor is an independent contractor with full power and authority to select the means, methods and manner of performing the work hereunder in accordance with the Specifications. Contractor is responsible to the Company only for the results herein contracted and for the faithful completion of the work. Company shall not have or exercise control of supervision over the employees of the Contractor; however, the Company reserves the right to require the Contractor to remove any employee of the Contractor or of any subcontractor if such employee is, in the opinion of the Company, incompetent or not qualified to performed the work he is engaged in or is performing any work in an unsafe manner. 1.17 Materials, Tools, and Equipment Furnished by Company Company shall furnish only those materials, tools, and equip- ment listed in Section IV of the Specifications. All materials, tools, and equipment furnished by the Company shall be checked by both Company and Contractor for quantity and condition upon receipt thereof by the Contractor. A written record of such receipt, quantity, and condition shall be kept by Contractor on Company's prescribed form. Contractor is responsible for the care and safekeeping of all material signed over to him. Should Contractor find, after his accep- tance, Company furnished materials, tools, and equipment to be defective in any respect or not suitable for their intended use, Contractor shall return same at his own expense to the point or points at which they were accepted. 1.18 Materials Furnished by Contractor All materials furnished by Contractor that becomes a part of the finished facility shall, unless otherwise specified, be new and of the specified grade and type. No substitutions of material from that specified may be made without the written approval of the Company. Any material used by the Contractor which does not conform to the Specifications will be removed and replaced by the Contractor at his expense. 1.19 Protection of Material and Finished Work Contractor shall be responsible for the protection of all equipment, supplies, materials, and finished work from loss, injury, and/or damages from any cause whatsoever until Final Acceptance by the Company. 1.20 Workmanship Contractor shall perform all work hereunder in a workmanlike manner and in accordance with the best and approved practices of the industry with qualified, careful, and efficient workers and in strict conformity with the Specifications. The Company shall have the right to require the Contractor, at his expense, to remedy or replace work determined by Inspector to be defective. 1.21 Assi~nabilit~ Contractor shall not assign, sublet, or subcontract wholly or in part any work hereunder without the prior written consent of the Company. Any sublettin§ by Contractor of any part of the work covered hereby shall not relieve Contractor of any responsibility for the proper performance of the work under the Specifications. All provisions of the Specifications shall remain binding against Contractor to the same extent as though no subletting had occurred. Any request for subletting I-5 shall be made to the Company in writing and it shall be the complete responsibility of the Contractor to bring any intentions of subletting to the attention of the Company as soon as the Contractor determines that any such subletting is necessary or desirable. 1.22 WarrantS The Contractor warrants all equipment and materials furnished by it and all work performed by it under this Agreement against defective design (except design furnished by the Company), materials, and workmanship for a period of one year from and after Final Acceptance, as Final Acceptance is defined in Paragraph 1.3 above, regardless of whether the same were furnished and performed by the Contractor or by any of its subcontractors of any tier. Upon receipt of written notice from the Company of a breach of warranty during the applicable warranty period, the affected items shall be redesigned, repaired or replaced by the Contractor; and the Contractor shall perform such tests as the Company may require to verify that such redesign, repairs, and replacement comply with the requirements of this Agreement. As to the redesigned, repaired or replaced work, the Contractor warrants such redesigned, repaired or replaced work against defective design, materials, and workmanship for a period of one year from and after the date of acceptance of such work. The Company reserves the right to have such repair or replacement work done when it deems advisable. All costs incidental to redesign, repair, replacement and testing (including labor, the removal, replacement, reinstallation of equipment neces- sary to gain access, the repair or replacement of damage to the work and the project resulting therefrom) and all other costs incurred as the result of a breach of warranty shall be borne by the Contractor. Should the Contractor fail to promptly make the necessary repairs, replacement, and tests, the Company may perform or cause to be performed the necessary work at the Contractor's expense. If an item of material carried a manufacturer's guarantee for a period other than one year, the manufacturer's guarantee shall be in force for the period stated. The above warranties are not intended as a limitation but are in addition to all other express warranties set forth in this Agreement and such other warranties as are implied by law, custom, and usage of trade. 1.23 Project Work Schedule Before commencement of the work, the Contractor will provide the Company a project work schedule divided into at least as many activities as are shown on the Uniform Bid Sheet. The schedule shall be suitable for use by the Company to deter- mine, at any point in time, if the project is capable of I-6 completion within the total number of calendar days specified in the Uniform Bid Sheet. The schedule shall be updated as necessary to show any change in the forecasted completion of any of the activities listed. 1.24 Delays If the Contractor is responsible for a delay causing the work to be more than seven calendar days behind schedule and will be unable, in the Inspector's opinion, to complete the work on time, the Contractor shall, upon written notice by the Company and without any additional cost to the Company, work such overtime and utilize such additional equipment as may be necessary to complete the work by the specified date. If the Contractor fails to perform the work at a rate which, in the opinion of the Inspector, will insure the completion by the specified date, the Company may provide for additional con- tracting needed for the timely completion of the work by whatever means or method it may deem expedient. The extra cost above contract cost of such additional contracting shall be deducted from the Contract price and, should the cost exceed the total proposal price, the difference shall be paid by the Contractor to the Company. If the Contractor is delayed by the Company's failure to provide materials or site for the work, the Company agrees to reimburse the Contractor for his actual costs, based on the rates in the Uniform Bid Sheet, for such men and equipment that cannot be utilized during such a delay. The Inspector and the Contractor's representative will itemize all costs incurred by such a delay and a change order will be issued each day in which these costs are incurred. 1.25 Extension of Time Should Contractor be delayed in the prosecution or completion of the work by the act, neglect, delay, or default of the Company, then any such delay shall not be deemed a default by the ContractBr in the performance of his obligation hereunder. The period for the completion of the work shall be extended for a period equivalent to that lost by reason of the afore- said causes, such causes and period of extension to be determined by the Company. No extension shall be allowed without written request for such being presented to the Company within three days after the period of delay commences. 1.26 Shutdown Due to Strike or Labor Dispute Company shall not be liable to Contractor for any expenses, charges, or delays which Contractor might sustain or become liable for on account of work being suspended because of a strike, boycott, picketing or labor dispute. If picketing occurs at any place on, or leading to, the work site, other than at the gate or gates reserved for the use of I-7 Contractor, its subcontractors (at whatever tier) and the employees or suppliers of any of them, and if, in the opinion of Company (which shall be final), it appears that such picketing: 1. Has resulted from the award of this contract to Con- tractor (or any of its subcontractors, at whatever tier); and 2. That such picketing is in violation of the National Labor Relations Act, as amended; then, upon appropriate notification from Company, Contractor shall use all reasonable, lawful means available (including legal recourse) to stop such picketing, at the sole cost, risk, and expense of Contractor. Absence of any such notification from Company shall not deprive Contractor of its rights to take any such action on its own as in its judgment it may deem appropriate. 1.27 Force Majeure In the event of either party's being rendered unable wholly or in part by Force Majeure to carry out its obligations under the Agreement, then on such party's giving notice and full particulars of Force Majeure in writing to the other party as soon as possible after the occurrence of the cause relied on, the obligation of the party giving notice, so far as affected by such Force Majeure, shall be suspended during the continu- ance of any inability so caused, and such inability shall not be a breach of the Agreement, and such party shall not be liable for damages or otherwise on account thereof. The term "Force Majeure" as employed herein shall mean acts of God, hurricanes, earthquakes, fire, flood, malicious mischief, insurrection, strikes, (except as noted in 1.26 above), riot, war (declared or undeclared), landslides, washout, explosion, epidemics, compliance with any federal, state or municipal law or with any regulation, order, rule or recommendation of any governmental agency or authority acting under claim or color of authority, total or partial failure or loss of all or any part of transportation facilities ordinarily available to and used by a party hereto in the performance of the obligations imposed by the Agreement, or any cause whatsoever beyond the control of either party thereto, whether similar to or dissimilar from the causes herein enumerated. Any delay caused by Force Majeure shall automatically extend completion date by a corresponding length of time. 1.28 Company's Right of Termination Company shall have the right at any time to cancel the Agree- ment or any portion thereof upon giving ten days' notice in I-8 writing to Contractor. In such event, Contractor shall be entitled to full payment for the work done up to the time of such cancellation, provided that satisfactory evidence is sub- mitted to Company that all bills and claims in connection with the work have been satisfactorily discharged. Contractor, in such event, shall be reimbursed by Company for expenditures required in preparing for and removing to and from the work and for such expenditures which, in the judgment of the Inspector, are not otherwise compensated for; the intent being that an equitable settlement be made for Contractor under such circumstances. If the work to be done under the Agreement shall be abandoned by Contractor, if the Agreement shall be assigned or the work sublet by Contractor otherwise than is provided for herein, if Contractor shall be adjudged as bankrupt or shall be insol- vent, if a receiver of the business or any part of the property of Contractor shall be appointed on account of the Contractor's insolvency, if Contractor shall refuse or fail to supply sufficient, properly skilled workmen, equipment, supplies, or materials to perform the work, or if Contractor shall disregard laws, ordinances, or violate any provision of the Agreement, Company may, without prejudice to any other right or remedy, by giving five days' notice in writing to Contractor, terminate the Agreement and Contractor shall discontinue any further work thereunder. In the event of such termination, Company shall have the right and power to complete the work by whatever method it may deem expedient. In such case, the Contractor shall not be entitled to receive any further payments until all the work is com- pleted and accepted. In case such expense of completing the work shall exceed the amount which would have been payable under the Agreement if same had been completed by Contractor, Contractor shall pay the amount of such excess to the Company. In case such expense shall be less than the amount which would have been payable under this Agreement had same been completed by the Contractor, the Contractor shall be entitled to such difference provided all expenses, claims and damages shall have been satisfied. 1.29 Payment of Bills In the event Contractor fails or refuses to promptly and satisfactorily pay for all labor performed and all materials, tools, equipment, utilities, facilities, and supplies furnished in connection with the work, Company may, after giving written notice thereof, pay and settle such just and reasonable claims for account of Contractor and deduct amount of such payment from invoice payments to Contractor. I-9 1.30 Indemnity Contractor shall indemnify and hold Company harmless from any and all claims, expense (including attorneys' fees), loss, or damage arising from any cause whatsoever out of the work to be performed under this Agreement whether in tort, contract, strict liability, or otherwise, and whether arising before or after Final Acceptance, and Contractor shall defend Company at Contractor's sole expense in any litigation involving the same, regardless of whether such work is performed by either the Contractor, his employees, subcontractors, their employees, or all of them. 1.31 Insurance Contractor shall provide and maintain at his sole cost and expense and in full force and effect from the date on which work commences until this Agreement has been completely performed, the following insurance: 1. Insurance which shall comply with all applicable Workers' Compensation and Occupational Disease laws and which shall cover all of Contractor's employees performing work under the contract. Employers' liability coverage shall be provided with a limit of not less than $100,000. If any work to be performed under the contract will involve operations on docks, wharves, piers, terminals, or other installations adjacent to navigable waters within the territorial limits of the United States of America, such insurance shall include coverage for claims under the United States Longshoremen's and Harbor Workers' Act. If any of the work to be performed under the contract will involve operations on waters offshore the United States, insurance shall include coverage for claims under the United States 'Longshoremen's and Harbor Workers' Act extended to include the Outer Continental Shelf. 2. Comprehensive general Public Liability Insurance with bodily injury limit of not less than $300,000 per occurrence and with a property damage limit of not less than $100,000. Such insurance shall include coverage for all liability assumed by Contractor under the terms of this contract with limits of liability not less than those set out above. Such policies must include coverage for damage caused by fire, blasting, and explosion. The proposed construction will occur on St. Louis Southwestern Railway Company right-of-way, Contractor shall, in addition to the above-mentioned, provide and maintain at his sole cost and expense and in full force and effect from the date on which work commences until this agreement has been completely performed, insurance which satisfies the following St. Louis Southwestern Railway company requirements: I-lO 1. Comprehensive General Liability With Contractual Liability Endorsement - Combined single limit of at least $2 million. - Railroad is named as additional insured without any qualifications or restrictions. - Contractual liability endorsement must have exclusions for operations within 50 feet of a railroad and for XCU hazards deleted. - Railroad must have 30 days notice of cancellation or modification. 2. Comprehensive Automobile Liability Policy. - Combined single limit of at least $2 million. - Railroad is named as additional insured without any qualifications or restrictions. - Railroad must have 30 days notice of cancellation or modification. 3. Certified copy of insurance policy is required in the State of Texas. Review will be expedited if the following items are marked with a tab or a paper clip: - The page showing the limits on the policy. - Endorsement showing Railroad named as additional insured and requiring that Railroad be given 30 days notice of cancellation or modification. - Contractual liability endorsement. - Endorsement removing exclusions form contractual liability endorsement for operations within 50 feet of a railroad and for SCU hazards. 4. Policies should contain a cross liability endorsement reading as follows: It is agreed that the inclusion of more than one person, corporation, organization, firm or entity as insured under this policy shall not in any way affect the rights of any such person, corporation, organization, firm or entity with respect to any claim, demand, suit or judgment made, brought or recovered by or in favor of any other insured. This policy shall protect each person, corporation, organization, firm or entity in the same manner as though a separate policy had been issued to each; 1-11 provided that this endorsement shall not operate to increase the company's limits of liability as set forth elsewhere in this policy. It shall be the Contractor's obligation to see that each and every subcontractor employed by him carries and pays for the same kinds and amounts of insurance as are required of the Contractor. All insurance coverage required by the Agreement shall be written on policy forms and by insurance companies approved by the Company. The Contractor shall furnish to the Company certificates of insurance for approval prior to the commence- ment of work, a true copy of which is made a part of this contract in Addendum I. Certification of Insurance shall contain a statement that the said insurance will not be materially changed or cancelled without at least ten (10) days' prior written notice to the Company. On contracts of $10,000,000 or less, the Company will provide "All Risk" protection on equipment, materials and machinery which will become a part of the completed project covered by this contract, while in transit, if purchased F.O.B. factory, or upon delivery, if purchased F.O.B. job site; while awaiting and during erection or installation; and until the project is completed and accepted by the Company. On contracts of $1,000,000 or less any loss amounting to $5,000 or less will be paid by Contractor except for equip- ment, materials and machinery which were ordered by Company and the loss occurred before acceptance by Contractor. On contracts of $1,000,000 or more the Contractor will be respon- sible for any loss amounting to $25,000 or less. Contractor shall not include the cost of any "All Risk" insurance in his bid for contracts of $10,000,000 or less. On contracts of $10,000,000 or greater, Contractor shall submit a separate quotation for providing "All Risk" Insurance. 1.32 Payment to Contractor The Company will make progress payments to the Contractor at the end of each calendar month for work completed, less fifteen (15%) percent of the invoice amount for retainage purposes. Payment shall be made within thirty days after receipt of Contractor's invoice. The amount of work completed at the end of each calendar month shall be determined by the Inspector. Progress payments for material furnished by Contractor shall be made only for material installed, not material delivered to job site. Invoices for work performed under Change Orders shall be submitted independently of progress payment invoices and a 1-12 copy of the Change Order shall be attached to the invoice. Retainage may or may not be withheld from invoices referencing Change Orders. The Company shall decide at the time of invoice submittal if retainage will be withheld or not. The Company reserves the right to hold lien on payments to Contractor in the event of damage to Company's property by Contractor until such damage has been corrected at. the Contractor's expense to the satisfaction of the Inspector. Upon project completion and final testing, the Inspector and the Contractor's representative shall make a final certified statement as to the work performed and the Company will assume operating responsibility for the facility. Final testing shall consist of the satisfactory performance of all tests required under the Technical Specifications. The Contractor may invoice the Company for final payment of the fifteen percent (15%} contract retainage amount when Company has given Final Acceptance, as defined in Paragraph 1.3, and Contractor has furnished to Company a complete waiver of all liens arising or which may arise out of this Agreement and an affidavit that full payment has been made for all labor, materials, and subcontracts for which a lien could be filed, when the above conditions for final payment have been met, the Company shall make such payment within thirty days after receipt at Contractor's invoice and affidavit, the form of which is attached as Addendum III. Invoices should be forwarded in triplicate to: Con-Dor Pipe Line Co. c/o Continental Pipe Line Company 1909 Southwood Drive Lake Charles, LA 70605 Attention: Marcus Dominguez 1.33 Ethics; Conflicts of Interest Contractor shall not pay any commissions or fees, or make any payments or rebates, to any employee or officer of Company, or favor any employee or officer of Company with gifts or enter- tainment of significant cost or value, or enter into any business arrangements with any employee or officer of Company other than as a representative of Company. Contractor's obligations to Company under this paragraph shall also be binding upon any subcontractors (at whatever tier) of work hereunder. Contractor shall insert the provisions of this paragraph in each subcontract. 1.34 Audits Contractor shall maintaim, and for a period of two years following Final Acceptance of the work or termination of this 1-13 Agreement, retain, a true and accurate set of records and information which may have any effect on or be related to this Agreement or the work. Prior to the expiration of such two-year period, Company shall have access to, and shall have the right to audit at reasonable times and places during normal working hours, all such records and information except {a) costs of work performed and paid on a lump sum basis and (b) calculation of the percentage(s) used as mark-up{s) or multiplier{s) applied to other cots. Contractor shall cooperate fully in furnishing all requested records and information. Company shall have the right to obtain state- ments from any of Contractor's personnel in order to conduct or complete such audits. All audits will be conducted in accordance with generally accepted auditing standards. Contractor's obligations to Company under this paragraph shall also be binding upon any subcontractors (at whatever tier} of work hereunder. Contractor shall insert the provisions of this paragraph in each such subcontract. 1.34 Insolvency In the event the Contractor becomes insolvent, has his equip- ment or machinery reduced to possession by one or more of his creditors or is subjected to receivership, bankruptcy or any creditor's arrangement, the Company shall be entitled to terminate the Agreement upon delivery of notice in writing one day in advance, under such circumstances, and subject to the provisions of Paragraphs 1.21, 1.26, 1.27, 1.28, 1.29, 1.30, 1.31, 1.33, 1.34, 1.35, and 1.37, the Company will make payment to Contractor or his creditors as their interests may appear for 85% of the work which has been completed as certified by the Inspector. Payment to Contractor or his creditors for materials will be on the basis of material installed only. Following completion and final testing, Inspector and representatives of the Contractor shall make a final certified statement as to the work performed. When Final Acceptance in writing has been given by the Company and the Contractor has furnished evidence satisfactory to Company that all bills and claims in connection with the work have been satisfactorily discharged, the Company will pay to Contractor or his creditors within 30 days after receipt of Contractor's invoice the remaining amount due, except such sums as may be retained under the provisions of these Speci- fications and the Agreement. Termination pursuant to this paragraph shall not give rise to a cause of action for damage on behalf of the Contractor. 1.36 Payroll and Other Taxes Contractor agrees to accept full and exclusive liability for the payment of all taxes and contributions now or hereafter imposed by the governments of the United States, any state or states, or any locality which are measured by the wages, salaries, and other remunerations paid to persons employed by Contractor in the performance of the work covered herein. 1-14 Contractor further agrees to pay and be liable for all sales, use, excise, and other similar taxes applicable to materials and service to be furnished by Contractor herein. Contractor agrees to report and pay such taxes and contribu- tions directly to such agencies as may be charged with the duty of collecting same. Contractor shall require all subcon- tractors to abide by the provisions of this section. 1.37 Permits, Laws, and Regulations Contractor shall abide by all applicable federal, state, and local laws and the rules and regulations of any other regula- tory body in connection with any and all work to be performed hereunder. Contractor shall give particular attention to all applicable sections of the OSHA (Occupational Safety and Health Administration) standards and shall comply with such standards during fulfillment of this contract. Contractor represents that he is licensed by the representative governmental agencies having jurisdiction. Contractor agrees to secure, at his own expense, unless otherwise specified herein, all additional permits and licenses to fully cover all operations and work to be conducted hereunder, includin§ the hauling and transportation of equipment and material. Contractor shall require all subcontractors to abide by the provisions of this section. To the extent permitted by law, the Agreement shall be governed by the internal laws of the State of Texas. 1.38 Government Regulations - Federal The following clauses, where applicable, are incorporated in this contract by reference as if fully set out: the Equal Opportunity Clause prescribed in 41C.F.R.60-1.4: the Affirma- tive Action Clause prescribed in 41C.F.R. 60-250.4, regarding veterans and veterans of the Vietnam Era; and the Affirmative Action Clause for Handicapped Workers prescribed in 41C.F.R. 60-741.4. To the extent required by 45 F.R. 31028, Contractor agrees that, in awarding subcontracts, it will utilize small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals to the fullest extent consistent with efficient performance of this contract. Contractor further agrees to cooperate in any studies or surveys that may be conducted by the Small Business Administration (SBA), or the contracting agency which may be necessary to determine the extend to Contractor's compliance with this clause. The terms "small business concern" and "small business concern owned and controlled by socially and economically disadvantaged individuals" shall have the mean- in§s set forth in 45 F.R. 31028. Contractor shall assume that 1-15 socially and economically disadvantaged individuals include Black Americans, Hispanic American, Native Americans, Asian-Pacific Americans, and other minorities or any other individual found to be disadvantaged by the SBA pursuant to Section 8 (a) of the Act. Contractor, acting in good faith, may rely on written representations by its subcontractors regarding their status as small business concerns or small business concerns owned and controlled by socially and econom- ically disadvantaged individuals. If this contract is in excess of $500,000, Contractor further agrees to carry out the subcontracting programs set forth in 41C.F.R. 9-1.710 to the extend required. To the extend required by Executive Order 12138 and regu- lations thereunder, Contractor agrees that, in awarding subcontracts, it will use its best efforts to utilize women- owned businesses to fullest extent consistent with efficient performance of this contract. A women-owned business concern means a business that is a least fifty-one percent {51%) owned by a woman or women who also control and operate it. Control in this context means exercising the power to make policy decisions. Operate in this context means being actively involved in the day-to-day management. Women means all women business owners. If this contract is in excess of $500,000, Contractor further agrees to carry out the subcontracting programs set forth in 45 F.R. 31034 to the extent required. 1-16 SECTION II TECHNICAL SPECIFICATIONS SECTION I I TECHNICAL SPECIFICATIONS 2.0 Scope 2.1 Right-of-Way 2.2 Clearing and Grading of Right-of-Way 2.3 Marking of Existing Lines 2.4 Stringing and Unloading of New Pipe 2.5 Ditching 2.6 Protection of Pipeline, Telephone Conduits, Etc. 2.7 Welding 2.8 Protective Coating 2.9 Laying and Lowering-In 2.10 Installation of Test Leads 2.11 Backfilling and Cleanup 2.12 Testing 2.13 Tie-Ins 2.14 Protection of Finished Work 2.15 Removal of Existing Line SECTION II TECHNICAL SPECIFICATIONS 2.0 Scope Contractor shall furnish all labor, materials, and equipment necessary for the complete installation and hydrostatic testing of the pipeline system as shown on the drawings and specified herein, for the replacement and lowering of the Con-Dor Pipe Line 6-inch products pipeline at the Northlake Woodland East Phase VI location. This will include the installation of 100' of concrete coated pipe; the hydrostatic testing of all 100'; the hot tapping and cold cutting of the line; the drainup of the line with the exception of the vacuum truck which will be Company supplied; the tie-ins; backfill; and the removal, cutting, and hauling of the existing 6" line. All work and materials shall be in accordance with the Department of Transportation, Part 195, "Transportation of Liquids by Pipelines," ANSI/ASME B31.4, "Liquid Petroleum Transportation Piping Systems" and all appropriate API Standards, OSHA Regu- lations, and Federal and State Regulations and Requirements. The Contractor shall be responsible for familiarizing himself with the above regulations and adhering to the applicable requirements. 2.1 Right-of-Wa~ The Company will make available a map showing the route of the pipeline. Company will furnish all necessary right-of-way permits. Contractor shall comply with all reasonable requirements of landowners. It will be the Contractor's responsibility to limit traffic on the right-of-way to such vehicles as are necessary to the operations thereon. 2.2 Clearing and Gradin~ of Ri~ht-of-Way Contractor will restrict his clearing and grading operations to the limits of the right-of-way obtained by the Company. Contractor shall be responsible for any damages outside of right-of-way limits, as defined and agreed upon previous to the commencement of said construction. Contractor shall perform all necessary grading at road crossings, stream and gully crossings, and at other locations where needed. II-1 Only that amount of right-of-way necessary for actual ditching and laying of pipe shall be used, and work shall be performed in such manner as to minimize damages. 2.3 Markin9 of Existin9 Lines The Contractor shall be responsible for locating and adequately marking the existing pipeline(s). The Contractor shall place stakes or similar markers at a spacing which will provide an accurate plot of the pipeline's path through the right-of-way. The markers shall be spaced close enough to assure safe excava- tion of the new ditch without any risk of damage or rupture to the existing line. Careful marking of the existing line is essential since it will be in service while the new ditch is being excavated adjacent to the existing line. Any damage to the existing line during excavation of the new ditch will be repaired at Contractor's expense and to the Inspec- tor's approval. In addition, all costs associated with such damage (such as spill cleanup, crop damages due to spills, etc.) will also be borne by the Contractor. 2.4 Strin~in9 and Unloadin~ of New Pipe Contractor shall be responsible for all costs associated with, and shall furnish all necessary labor, equipment and supplies to store, and string on right-of-way all material required for the work. The pipe will be delivered on site. Cost of delivery will be incurred by the Company. The contractor will be responsible for and will incur the cost of unloading the pipe on site. If the pipe is shipped to a point other than the job site, at the request or for the convenience of the Contractor, the expenses of such action shall be borne by the Contractor. When Contractor takes custody of the pipe from the Company (i.e., when a pipe tally and material custody transfer is complete), a note wiql be made as to the number of damaged bevels, number of defective joints, and number of joints with damaged or defective coating. Satisfaction of the above requirements is the Contrac- tor's responsibility and is necessary for later reimbursement to the Contractor for rework of damaged material. If materials are transferred to the Contractor damaged, Company will either repair these materials at its expense or wi,ll request Contractor to make repairs and reimburse Contractor for such work per the Wage Rate Schedule and Equipment List. The hauling and stringing of pipe and other materials on the right-of-way by Contractor shall be performed in such manner as to prevent damage to materials. Under no circumstances will the pipe be rolled, pushed, or dropped from the truck during string- ing. All pipe will be gently lowered from the truck to the ground using a properly rigged piece of heavy equipment. The II-2 rigging should be a non-abrasive rubberized canvas sling, suffi- ciently long and wide so that no metal part can touch the coated pipe. However, an equivalent, company approved device may also be used in lowering the pipe from the truck to the ground. Contractor shall prevent entrance of dirt or debris into pipe during stringing, and pipe should not be dragged behind tractors or trucks. Stringing of pipe on right-of-way shall be done in such a manner as to cause least interference with the normal use of the land and gaps shall be left at intervals to permit the use of the land. Should excess pipe remain upon completion of the project, the contractor will be requested to haul said pipe to a company designated location. Contractor shall promptly repair all bridges, private roads, fences, buildings, or other property damaged by it in the pro- gress of work. Written permission must be secured from owner before private roads or bridges are used. Such written permis- sion will be obtained by Company. 2.5 Ditching Equipment and General Methods - Contractor shall use such equip- ment and methods as required to excavate the ditch to the stake line established, regardless of the type of soil encountered and regardless of the depth of excavation necessary. All ditching and other excavations shall be in compliance with applicable portions of the Code of Federal Regulations - Title 29, Subpart P, "Excavation, Trenching and Shoring," and all local, county, state, federal and railroad regulations in effect. Shoring - The sides of all excavations in which employees are exposed to danger from moving ground shall be sloped in accordance with OSHA 2226. If such sloping is not feasible, shoring shall be used. Such shoring, bracing, or underpinning shall be inspected daily or more often, as conditions warrant. Stakes - Contractor shall carefully preserve all stakes set by Company and shall be liable for any extra expenses because of its failure to maintain such stakes. Ditch Specifications - Minimum depth of cover shall be three and eight tenths (3.8) feet and shall be measured from the top of the pipe to the lowest level of the original ground level on the two sides of the ditch. The bottom of the ditch shall be cut to a uniform grade. Loose dirt shall not be allowed to fall into the ditch. II-3 The ditch shall be graded to pass under all pipelines, ditches, or other obstructions and as specified by the Inspector. The ditch shall be graded to allow a minimum clearance of twelve (12") inches between the pipe and other pipelines or underground structures except drain tile. However, where twelve (12") inches of clearance is impracticable, the clearance may be reduced if adequate provisions are made for corrosion control as determined by Inspector. When rock, gravel, and/or soil unsuitable for use as top soil is encountered, the Contractor shall remove top soil before removing the rock, gravel, and/or unsuitable soil. The undesirable material and top soil shall be placed in separate spoil banks. Backfilling shall be done in a manner that all top soil will be placed back in its original location. Under no circumstances shall top soil be mixed with undesirable materials. In areas where sufficient rock is encountered, or where Inspector deems necessary, Contractor at his own expense will pad the ditch with sand; or a dirt pad free of rocks, hard clods, or foreign material at fifteen (15') foot intervals sufficient to support the pipe six (6") inches above bottom of the ditch. The pipe will be covered with dirt free of rock a depth of six (6") inches above the pipe. All unsuitable backfill material shall be disposed of at Contractor's expense. If suitable dirt for padding is not readily available along the pipeline right-of-way, then the Contractor, at his expense, shall provide and haul in from off right-of-way, sufficient quantities of padding materials as may be required. In no case will dirt be procured by sloping the shoulder of the ditch. Backfilling will be done in accordance with the Technical Specifications, Section 2.10. Spoil Bank - The spoil bank from the ditching operations shall not be allowed to fall on any loose debris or foreign matter that might become mixed with the soil excavated from the ditch. Hand-Ditch Requirement - In any location where, in the opinion of the Company, the use of ditching equipment may result in unneces- sary damage or injury to property crossed by the right-of-way, Company may require the ditch to be excavated by hand at Contrac- tor's expense. Protection of Ditches - Contractor shall protect all trenches or ditches with signs, barricades, guardrails, lanterns, flares and other equipment as required by law and by an ordinarily prudent person to protect employees of Contractor, employees of Company, and third persons from injury to person or property. Addition- ally, Contractor shall comply with any city, county, state, and federal regulations relative to the placing of danger signals, lights or flares. II-4 2.6 Protection of Pipeline, Telephone Conduits, Etc. Contractor is to take due precautions to avoid damage to drain tile, pipelines, telephone lines or cable or other properties of the Company or others crossing or adjacent to the pipeline being constructed, accepting final liability for all expenses of repairing, loss of commodity, and loss of revenue occasioned by damage to such pipelines, telephone lines, or other property. 2.7 Weldin9 General - The Contractor shall use the shielded arc method for all welding. All welding and testing shall be in accordance with API Standard 1104, "Standard for Welding Pipelines and Related Facilities." Welding rods shall be stored and used in accordance with the manufacturer's recommendations. The voltage and amperage output of welding machine shall be in accordance with the specified values supplied by the manufacturer of the welding rods. Company will, at its expense, X-ray all welds. Contractor shall cooperate with X-ray company on all tests. Procedure Qualification - Contractor shall have a weld made and tested for each size category of pipe furnished by Company. Procedure and qualification shall be recorded on Pipe Line Standard T-5, "Welding Procedure." Company approval of the welding procedure is required. Procedures not approved by Company may not be used. Welder's Qualifications - Contractor shall use only competent, skilled, and qualified workmen, and all work shall be completed to the satisfaction of the Inspector. Each welder employed by Contractor shall be required to satisfactorily pass the welding test at the expense of the Contractor before being allowed to weld on the job. Contractor may allow preliminary practice welds prior to test weld; however, Contractor will reimburse Company for the pipe used during practice welding. Alignin9, Tacking, and Weldin9 - All adjoining lengths of pipe are to be accurately aligned and spaced before welding as speci- fied in API Code 1104. All welds are to be cleaned free of slag between each pass through the use of a power grinder. The completed weld shall be free from pinholes, non-metallic inclusions, air pockets, under- cutting, and/or any other defects, as specified in API Code 1104. Any welds containing any of these defects will be cut out and rewelded at Contractor's expense. Defective or Damaged Pipe - Should laminations or split ends be discovered in the pipe during the process of welding, such laminations or split ends shall be cut out and beveled before placing in the line. II-5 If ends of the pipe are damaged to the extent that satisfactory welding contact cannot be obtained, pipe shall be cut and beveled to satisfaction of Inspector. The cost of beveling any joint shall be borne by Contractor unless it is determined that the damages occurred prior to the Contractor's accepting the custody of the pipe with such defects being clearly noted on the pipe tally signed by the Contractor's representative and the Company's representative at the time of material custody transfer. This note shall contain the type of damage {example, bad bevel or buckle) and the footage of pipe rendered useless because of the damage. No repair welding shall be performed on the longitudinal seams of any pipe. Weather Conditions - Welding shall not be permitted when weather conditions are unsatisfactory and would impair the quality of welds. No welding shall be done if, in the opinion of Inspector, the high winds, rain, snow, dust, or sandstorms are of sufficient magnitude to prevent satisfactory welding. The Contractor shall bear all shutdown and associated costs due to bad weather. Bad weather shall be defined as weather which, in the opinion of the Inspector, prevents satisfactory welding or impairs the quality of work. Suitable wind guards shall be provided by Contractor in windy weather at Contractor's expense. Preheating will be done when the temperature of the pipe in the area of the weld is less than 40 degrees F. at the time of welding. A welding area of 3 inches on either side of the intended weld shall be preheated by Contractor to not less than 200 degrees F. prior to welding. All costs associated with preheating welds shall be borne by the Contractor. Linin9 Up of Longitudinal Seams - The pipe to be used for con- struction of the line may have a longitudinal seam with an external upset. If there are such seams, the longitudinal seams shall be staggered at "ten o'clock" and "two o'clock" positions, and welded sections or single lengths shall be assembled in such manner that the longitudinal seams shall remain on the top half of the pipe after lowering into ditch. In bends, the longitudi- nal seam shall be in a plane at right angles to the bend. 2.8 Protective Coatin9 General - Contractor shall be responsible for coating all field joints and locating and repairing all holidays and construction damage. Field coating shall consist of Protecto Wrap No. 1170 primer and Protecto Wrap No. 310 tape, or Company approved equal, furnished by Contractor. Any coating materials which, in Company's opinion, show evidence of deterioration because of weathering or any other cause may be rejected by Company. All coating shall be applied in accordance with manufacturer's instruction. II-6 The joints within the concrete coated pipe will be field coated with the above specified material. The joint wire will then be tied as shown on the included Pipeline Standard ML-8. After the wire has been tied, the joints will be formed and grouted with 3000 lb. grout. Cleanin9 - In preparation for the application for primer, pipe shall be cleaned until free from all loose mill scale, rust scale, corrosion, pipe coating, dirt, grease, moisture or other foreign material with a wire brush and then with a non-flammable, volatile solvent. Coating shall be applied immediately after the solvent has dried. Primin9 and Tapin9 - The primer shall be applied immediately after the cleaning operation in a thin, uniform coating, leaving no drips or runs and covering the entire surface of the pipe. Freshly primed pipe shall be supported so that it will not come in contact with dirt and weeds. After the primer coat has set, the primed area shall be spiral wrapped with one layer of tape, applying sufficient tension on the tape to provide a firm, smooth bond to the primed pipe. Tape shall be applied with each wrap of tape overlapping the previous spiral by i inch. Spiral wraps shall overlap the existing coating a minimum of 3 inches on each end. The spiral shall be started and ended with a wrap which is square with the length of the pipe. Tape shall not be applied at temperatures below the minimum application temperatures recom- mended by the manufacturer. All pipe which is primed shall be wrapped the same day. Care and Handling of Coated Pipe - Coated pipe shall be handled at all times with wide, nonabrasive, rubberized canvas belts or other equipment approved by the Inspector. The use of tongs, bare pinch bars, chain slings, rope slings, canvas or composition belt slings with protruding rivets, pipehooks, or any other handling equipment found to be injurious to the coating or the bevel shall not be permitted. Yard-coated pipe shall be unloaded and handled in such a manner as to protect the coating from damage at all times. After field joints have been coated, the entire line, excluding the concrete coated pipe, will be tested with a holiday detector furnished and operated by the Contractor in a manner acceptable to the Inspector. The Inspector will specify the voltage setting of the holiday detector prior to jeeping. All coating defects indicated by the holiday detector, damaged areas, and holes in the coating shall be repaired by the Contractor at the Contrac- tor's expense. The coated and wrapped line shall be immediately lowered into the ditch. Coating damage shall be noted on the material transfer when pipe is signed for. Any damage noted shall be paid for by the Company. Any damage not noted shall be repaired at the expense of the Contractor. II-7 Repairs - All holidays and damaged coating shall be repaired by removing all loose coating materials and cleaning and applying primer and tape as described in those sections. When making repairs, the tape should overlap the damaged area by I inch. A full wrap of tape should be made around the circumference of the pipe and the ends of the tape should overlap each other by 3 inches. 2.9 Lasin9 and Lowering-In Closing Ends of Line - The open ends of the line shall be securemy closed at the end of each day's work to prevent the entrance of water, small animals, trash or any other obstructions and shall not'be opened until work is resumed. Lowerin9 and Obtaining Slack - The line may be lowered into the ditch following radiographic testing of every weld, joint coating operations and after holiday detection. No slack loops will be permitted in the pipeline. The Contractor may employ any accept- able means of lowering, provided that such means will secure the necessary amount of slack uniformly distributed in the bottom of the ditch and does not injure the pipe or protective coatings. When lowering the line into the ditch, the Contractor shall support the pipe so as to provide for necessary slack. Before lowering pipe into the ditch, all skid marks and other damaged places shall be repaired. Excess slack, if any, shall be removed by the Contractor by cutting out as requested by the Inspector and rewelding the resulting two ends of the line together. A nonabrasive, rubberized canvas sling, sufficiently long and wide so that no metal part can touch the coated pipe, or a wheel with rubber tires shall be used in lowering all coated pipe sections. The necessary amount of slack must be obtained without injury to the protective coating. Coating which is injured in handling or lowering pipe shall be repaired by the Contractor at his expense. In removing the sling, a bell hole shall be dug if necessary so that no part of the sling will damage the coating. 2.10 Installation of Test Leads The Contractor will supply all labor, equipment and materials necessary to install the Company provided test leads (2). Installation shall be accomplished by means of cad weld using an inspector approved charge. The pipe surface shall be cleaned and roughed with a rasp to provide a good bonding surface. The leads shall be placed on the top side of the pipe. Having completed the weld, the Contractor shall insure sufficient bondage has resulted and the rough edges of the weld will be smoothed by means of a rasp. The area of damaged coating will then be primed and coated as per Section 2.8 of the Technical Specifications. II-8 2.11 Backfillin9 and Cleanup Approval by Company's Inspector - No ditch shall be backfilled unless the pipe has proper depth, fit, and a proper dirt pad. The Inspector's approval must be obtained before backfilling any section of ditch. Manual backfilling shall be used where mech- anical equipment, if used, would damage property. All backfill shall be crowned directly over the ditch to a height not less than 8 inches nor greater than 14 inches above the adjacent ground surface. The earth on both sides of the pipeline ditch shall be graded in a manner satisfactory to the Inspector. Backfill shall be maintained by the Contractor until the Company assumes operating responsibility as defined. Disposal of Rock - Rock taken from the ditch may be replaced, providing no rock is piled on top or near the top of the ditch in such a way as to add to the difficulties of plowing, cultivating, or grading. All surplus rock removed from the ditch shall be disposed of by the Contractor to the satisfaction of the Inspector at the Contractor's expense. In all areas, the final appearance of the right-of-way after final cleanup must be the same as the general surrounding terrain. No rock will be left protruding from the surface within the ditch area along the right-of-way. Site inspections by the Inspector will determine whether excavated material is suitable for backfill. If it is determined unsuitable, the material will be removed from the site at the expense of the Contractor. Backfill on Slopin9 Ground - When backfilling hillsides or sloping ground, Contractor shall provide furrows or terraces across the pipeline ditch as requested by Inspector to direct the flow of water into natural drainage courses and away from the pipeline ditch. Backfillin9 Over Coated Pipe - Backfilling shall be accomplished in a manner approved by Inspector such that no rocks, hard clods, or other hard objects will be permitted to fall on the coated pipe; the pipe shall be covered with 6" of sand or suitable material before any rocks or hard objects are put into the ditch. The Contractor shall, at his expense, provide additional compaction as needed to minimize settling of backfill. No Trash to be Thrown into Ditch - Throwing of foreign substances or refuse of any kind into ditch will not be permitted. All such materials and refuse must be removed from the right-of-way, by the Contractor, to the satisfaction of the Inspector. II-9 Cleanup of Right-of-Wa~ - As soon as backfill is completed, Contractor shall immediately clean up the right-of-way, removing all defective materials and disposing of all refuse, to the complete satisfaction of the Inspector. Insofar as possible, the earth on both sides of the pipeline ditch which has been disturbed during the construction of the pipeline shall be smoothed up and left in a condition satisfactory to the landowner and the Inspector. Cleanup of Storage Points - Contractor shall clean up all storage places where pipe and other materials have been stored. Negotiations with Property Owners - Should the Contractor make separate negotiations with individual landowners for items above the normal amount of cleanup or construction, he shall obtain a written release on Company's form from the landowner and tenant as soon as these negotiations are satisfied. A copy of the executed release will be given to the Company before the work begins. 2.12 Testin~ Hydrostatic Testin~ - All hydrostatic tests will conform to API RP 1110 "Recommended Practice for the Pressure Testing of Liquid Petroleum Pipelines." The replaced section will be the only part hydrostatically tested. The hydrostatic test will be conducted prior to installation. Contractor will supply all necessary pumps, labor, fuel, lubej valves, piping, fittings, scrapers, pig sigs, and any other equipment necessary to fill and test the 100 foot. Fresh water will be the test medium. Water for testing the line shall be furnished by Contractor from a source approved by Inspector. The Contractor, at no expense to the Company, is to take any necessary steps to prevent water in exposed piping from freezing when hydrostatic testing is being performed in cold weather. The Contractor will be responsible for any damage done by freezing water in exposed piping. The Contractor will furnish and lay the necessary temporary piping to supply the main line fill pump. Contractor will remove all temporary facilities after testing. During the hydrostatic test, pressure gauges, pumps, meters, and any equipment which will be damaged by the test pressure shall be protected by blinds or caps by the Contractor. Contractor shall remove all blinds or caps installed by same at the completion of the hydrostatic test. Equipment affecting the accuracy of the measurements used to validate the specified test pressure will be designed to measure the pressures to be encountered during the hydrostatic test~ Contractor will furnish the following equipment for conducting the hydrostatic test: II-10 a) A high volume pump capable of filling the line. b) A meter capable of measuring line fill. c) A variable speed, positive displacement pump capable of pressurizing the line at least 100 psi in excess of the specified test pressure. The pump should have a known volume per stroke and should be equipped with a stroke counter. The pump shall have no bypass valve. d) A large diameter Bourdon pressure gauge with a pressure range and increment divisions necessary to measure antic- ipated test pressures. e) A deadweight tester certified for accuracy and capable of measuring increments of I psi. f) A 24-hour recording pressure recorder with charts and ink. g) Two glass laboratory thermometers, with a 3-inch immersion capability, capable of measuring temperatures from 30 degrees F to 120 degrees F. h) A temperature recorder with charts and ink. Contractor is to conduct filling operation in a manner which prevents the intrusion of air into the test segment. Contractor will provide Company-approved vents to permit the purging of trapped air. Hydrostatic test pressure for the section being tested shall be 1800 psi. The test segment will be pressurized at a moderate and constant rate. When approximately 70 percent of the specified test pressure is reached, the pumping rate will be regulated to minimize pressure variations and to ensure that increments of no greater than 10 psi may be accurately read and recorded. The pressure record will be installed in parallel with a deadweight tester and will be checked prior to the test, during, and after the test. The pressure will be raised to the maximum test pressure, stabilized, and allowed to stand for 4 hours without repressuring. After test pressure is reached and observed to be stabilized, the pressure and temperature recorders will be started, using charts in real time orientation. Pressure will be monitored and recorded continuously during the duration of the test. All tests and checks will be recorded. During the course of the test period, the pressure will not vary more than that caused by temperature variation. II-Il Contractor will cooperate with the Inspector on the gathering of data during the test. At the conclusion of the test, Contractor will sign, date, and note the time on all the charts and turn them over to the Company. Contractor will also assist the Inspector in preparing a testing report on a form furnished by Company. Both the Inspector and the Contractor will sign the charts and test reports. Contractor shall bear the cost and be responsible for locating all leaks. All leaks resulting from faulty workmanship or faulty material furnished by Contractor shall be repaired by and at the expense of the Contractor. The Company shall bear the cost of replacement or repair of Company furnished material or equipment which fails during the pressure test. Contractor shall bear the cost of pressure testing until a final and complete pressure test is accepted by the Company regardless of failure of equipment or materials furnished by the Company or by the Contractor, except that in the event that more than one failure occurs in a test section due to faulty material furnished by the Company, reimbursement for the cost of retesting that section shall be paid by the Company at the rates set forth in the Uniform Bid Sheet. 2.13 Tie-Ins With the exception of the vacuum truck, the Contractor will provide all equipment and labor needed to complete the drainup and tie-ins. The Contractor will have maximum of 24 hours to complete the tie-ins. The Contractor will hot tap the line at the lowest point in the segment to be replaced. Upon completion of the drainup, the Contractor will cold cut the existing line, seal both ends with bentonite plugs, and insure that a vapor free atmosphere exists before proceeding with any welding. 2.14 Protection of Finished Work The Contractor shall be responsible for protection of the fin- ished work from injury or damage from any cause until final acceptance thereof by the Company. 2.15 Removal of Existin9 Line The Contractor shall evacuate the abandoned 6-inch line of any pocketed product by means of a poly pig pushed with air. The line will then be cut into 40' joints to allow for transporting to Southlake Products Terminal located at the 3500 block of Highway 26 West in Grapevine, Texas. II-12 SECTION III SAFETY REQUIREMENTS SECTION III SAFETY REQUIREMENTS 3.1 Safet~ and Compan~ Regulations The Contractor shall take all reasonable precautions to protect the workmen and the public and shall provide, where reasonable and necessary, barriers, guards, temporary bridges, lights, and watchmen. Company's applicable safety rules and regulations shall be observed as given in the Company's Safety Manual, Pipeline and Terminal Safet~ Manual. Special Company safety rules and regulations for the particular area of operation shall be followed and observed. The Contractor will, upon arrival at the construction site, sign a form indicating that he has received and familiarized himself with the manual. The Contractor shall familiarize himself with the area and/or operating units bordering the jobsite and the hazards that might be encountered in working next to them. He should be prepared to cooperate fully with the police, Company safety men, fire chief, and Company representative when requested to alter his operations during times of emergency or when violating any of their regulations and rules. The Contractor shall complete a safety checkout prior to begin- ning any work. This check list consists of a review of local company policies and the location of various emergency and safety equipment. The Contractor shall insure that all subcontractors used on the job also complete this check list and sign a copy for the Terminal Supervisor. Contractor shall comply with any and all applicable provisions of and amendments to the Williams-Steiger Occupational Safety and Health Act of 1970. 3.2 Precautions at the Jobsite General - The Contractor shall familiarize himself with the location of fire extinguishers, fire blankets, first aid kits, and other safety equipment already existing on the terminal property. When excavating for piping or conduit, special care shall be taken to avoid all live buried lines, cathodic protection cables and conduit, and to maintain the minimum distance between exist- ing conduits and pipe. No welding or electrical work shall take place near existing piping until the Company Inspector and Supervisor of Operations have given their approval. III-1 Areas of smoking, prefabrication of structures, etc., shall be designated by Company Inspector, and under no circumstances will these activities be allowed in undesignated areas. Absolutel~ no firearms will be permitted on, at or near the jobsite or on Compans premises. Fire Safety - Contractor shall be familiar with the location and use of fire-fighting equipment, including blankets, extin- guishers, hose, and ansul powder. Smoking materials should be immediately extinguished in the event of any accident or equip- ment failure resulting in the release of flammable vapors or liquids. Mechanical Safets - Contractor shall conspicuously mark all open ditches. Dangerous parts of machinery shall be indicated by safety colors or warning signs on Company equipment, particularly when equipment is remote controlled. Extreme care shall be exercised in moving about such equipment during icy or wet conditions. First Aid - Contractor shall review locations and use of first aid equipment. Local emergency telephone numbers for ambulance, fire department, and law enforcement agencies shall be posted in a prominent place in the temporary construction building. Vehicle Safety - Contractor shall review traffic patterns in and around the job site, particularly entrances, exits and parking areas. Contractor shall furnish required road signs, flashers, and equipment warning signs. All equipment and vehicles shall be operated in a legal and safe manner. III-2 SECTION IV MATERIALS SECTION IV MATERIALS 4.1 Material Custody and Handling Company-supplied materials will be transferred to Contractor by means of the Memorandum Transfer Forms. Contractor will assume responsibility for material at that time. 4.2 Materials Furnished by Company 1) Pipe, 6", 0.280 W.T., X-42, ERW, BFW, DRL coated with TGF-3 and 1" concrete coating 2) Test Leads 4.3 Materials Furnished by Contractor A. Piping Materials 1) Welding rods 2) Holiday detector 3) Threading equipment 5) Line locator 6) Hydrostatic test equipment a. Pumps b. Valves c. Piping d. Fittings e. Temperature and pressure recorders f. Deadweight tester g. Pressure gauge h. Water for test i. Skillet blinds 7) Skids and timbers 8) Stakes (used for marking the line) 9) "Nite Caps" 10) Line up clamps 11) Swabs for cleaning inside of pipe and tubing IV-1 12) Teflon tape 13) Coating materials 14) Materials and equipment for hot tap B. Other Material - Contractor will furnish all material not speci- fically detailed as Company-furnished. 4.4 Material Locations A. 6" Pipe: To be delivered on site. The cost of delivery will be incurred by the Company. B. Other Company-Supplied Materials: To be delivered on site IV-2 SECTION V DRAWINGS SECTION V DRAWINGS A. Conoco Pipe Line Standard Drawings ML-2 Backfill Requirements ML-8 Field Joint Concrete River Crossing ML-26 Bonding Requirements Prior to Removing and Replacing a Section of Pipe T-1 Welders Test Specimen Locations T-2 Welding Procedure Test Specimen Locations T-3 Welding Test Specimen T-4 Coupon Test Report T-5 Welding Procedure T-lO Hydrostatic Test Report T-11 Field Hydrostatic Test Report T-12 Hydrostatic Test Record And Certification T-13 Pressuring Log Data Sheet B. Drawings under Separate Cover 1. Plat Map of Construction Location 2. Detail Drawing of Construction Site ROCK EXCAVATION 1~" "'~DI~T PAD OR STYROFOAM EVERY 15' NORMAL EXCAVATION BAC,~.FILL R EQUIR E?~ E~.rrS .. Continental Pioe Line Company Hous:on. Texas iAo~°vt'd ................. FORMS ALONG TIE.WlRI PIPE LINE COATIN( AND WRAI~ING CONCRET! I DIMENSION '.'A~ TO BE AS S~ECIFIED ON CONSTRUCTION DRAWINGS FIELD JOINT CONCRETE RIVER CROSSING ~": ~ Std. ML-.~ ...~~ Pipe Line Standard Continental Pipe Line ComData/ _Issue '-- Oate TERMINA, c CABLE WITH "BURNQY'° SECTION OF PIPE SLEEVE CATALOGUE NO. YDS a W TO TO BE INSTALLED ~ ~ ADO THICKNESS FOR MORE CONTACT. %~ · AIN CABLE, SEE ' // ~ I, DETAtC"a". -- /,~ SEE NOTE 1. TE~"~AT~ ~SE ~ . " // ~BLES WITH BURNDY TERMINAL NO YSA 6 ~A* ~ ~ . // ~LD + ENOS WITH AN EXTRA 5/~ BOLT AND NUT OUTSIDE OF ~ / ~ II ~~/ ~ CABLE ~EC=FICATION . . SEE D AIL "8" · EX ~1o. DI~ONNECT CABLE FROM DAMAGED PIPE WHEN OU~IDE OF BELL HOLE '~0 CONNECT TO REPLACEMENT PIPE BEFORE LOWERIN~ IT INTO BELL HOLE. BURNDAY TERMINAL. EXTRA 5/8" BOLT ANI NO. YSA 6 WA - 2N ~'--- IF PIPE IS COATED \COATING TO BE REMOVED AND/OR CT. 'GASO" OR EQUIVALENT PIPE CLAMP. "INELD + ENDS'' DETAIL "A" COUFLING DETAIL SURNDY "HUG-A- NOTE: BUG" COVER 1. CABLES MAY BE DISCONNECTED FROM MAIN BURND¥CONNECTO~ JUMPER CABLE AT "B" WHEN WELD + END TYPE KS;5 · COUPLINGS ARE NOT BEING INSTALLED. :2. DISCONNECT RECTIFIERS BEFORE CUTTING ) LINE. ALL MATERIAL FURNISHED BY CONTRACTOR. DETAIL"S" BONDING REQUIREMENTS PRIOR TO REMOVING AND REPLACING A SECTION OF PIPE Pipe Line Standard STD. ML-26 Continental Pipe Line Company I~sue Hous[on, Texas A~)pm ovv(I , TOP OF PIPE-~ OR SIDE BEND TENSILE SECTION  NICK-B REA NICK-BREAK TENSILE SECTI* FACE BEND OR SIDE BEND rA .... t~cl~D ON .c;inc BENI TENSILE SECTION NIC~(-BREAK NICK-BREAK TENSILE SECTION ' ROOT BEND OR SIDE BEND PIPE 12-3/4" O.D. AND LARGER TENSILe' SECTION7 / TOP OF PIPE - / / TENSILE SECTION , NICK-BREAK ~ - _ -. FACE BEND / ~ '-'. ROOT BEND OR OR SiDE BEND SI~E BEND .... PIPE 10-1/2" O,D. AND SMALLER NOTE: 1. AT THE C~MPANY'S OPTION. THE LCCAT10NS MAY BE ROTATED 4S DEGREES COUNTERCLOCKWISE OR THEY MAY BE EQUALLY S~ACED AROUNO THE PIPE EXCEPT S~ECIMENS SHALL NOT INCLUDE THE LONGITUDINAL WELD. ALSO. AT · THE COMPANY'S OPTION, ADDITIONAL S?~ECIMENS MAY BE TAKEN. WELDERS TEST SPECIMEN LOCATIONS ~EF: APl 5-T~. 1104 Std. T-1  Pipe Line Standard Continental Pipe Line Company Issue Houston. Texas A~o~oved Dat.. TOP OF PIPE FACE BEND OR SIDEBEND_.~ ~ ~,..TENSILESECTION ROOT BEND OR S,DE BEND NIC)C-BREAK PIPE 10-1/2" O.D. AND S.'vIALLER fTOP OF PiPE ROOT BEND OR SIDE BEND--~ J ~.-FACE BEND OR SIDE BEND N,CK-BREAK- i\ / ,,--TENS,LE SEer,ON FACE BEND OR SIDE BEN NICK-BREAK TENSILE SECTION J / ~ ~ ~ ~ TENSmLE SE~ION ROOT BEND OR SIDE BEND FACE BEND OR SIDE BEND~' ' ' ~ROO1 · ' PIPE 12-3/4" O.D. AND L~RGER NOTE: 1. AT THE COMPANY'S OPTION. THE LOC~TIONS MAY BE ROTATED 45 DEGREES COUNTERCLOCKWISE OR THEY MAY BE EQUALLY SPACED ARCUN0 THE PIPE EXCEPT S~EC1MENS SHALL NOT INCLUDE THE LONGITUDINAL WELD. ALSO, AT THE COMPANY'S OPTION. ADDI'FIONAL SPECIMENS MAY 8E TAKEN. 'WELDING PROCEDURE TEST SPECIMEN LOCATIONS II~F: AP! STO. 1104 /~':'~ ~ Pipe L,ne Standard Std. T-2 ' Continental Pipe Line Company Issue Houston. Texas AoDroved - Date SPECIME'N MI BE I~'~,CH'I~E'OR OXYGEN CUT.--/ ~ SHALL BE PARALLEL AND S~TH. ~ .~,.~oac~E~ s.ou~ .~ ~ . .~ov~ o. ~,~.~. s,~ o~ ~c,~.. ! ! W~L~' TH,C~.E~ ~NSILE TEST SPECIMEN NOTCH ~ aY HACK~W. ~ ~ECIMEN MAY BE'MACHINE OR ~ ~ / OXYGEN C~. EDGES SHALL BE APPROX. ,~ ~ . ~ pARALLeL AND SMOOTH. DO NOT REMOVE REINFORCEME~ OF _ WELD ON EITHER SIDE OF SPE~IMEN. ! ~ ' I... WALL THICKNE~ NIC~ BREAK TE~ ~ECIMEN SPECIMEN MAY BE MACHINE . . 1/8" MAX.  OR OXYGEN CUT. ~ RAD. ALL I Ii ~APPRO~ 1" -t ~ ~ MINIMUM ~ REINFORCEMENT SHALL BE REMOVED FROM BOTH FACES FL~H WITH THE ~RFA~ OF ~E ~EClMEN. ~ECIMEN SHALL NOT BE F~ENED PRIOR TO TEeiNG. ROOT BEND AND FACE BEND TE~ ~ECIME~ WELD REINFORCEMENT SHALL BE REMOVED FROM BO~ FAC~ FLUSH WITH THE SURFACF OF THE ~E~MEN t [ WALL THICKNE~ I ' ~ M[NIMUM ~ ~1~ ~X. ~ [RAD. ALL ~[m~ MAY BE MA~INE ~ TO la IN~ ~Dm OR ~ ~Y BEO~GEN t ~_ ~0 ~ROXI~TELY ~4 IN~ WIDE AND ~EN 1~ IN~ REMOVED BY ~ ~ ~E~MEN ~INING Off GRINDING ~ SURFAC~ ~LL BE ~ ~D PARALLEL /z WALL ~IC~N~ SIDE BEND T~ ~ECIMEN R~F~ A~ ~..~ WELDING ~ST SPECIMENS S~. T-3 ~nti~l Pi~ Li~ ~m~,, H~n, Tex~ PROJECT: AFE: LOCATION: CONTRACTOR: CONTRACT NO.: WELDER:. MARK: TIME AND DATE: AM/PM TEMPERATURE: WELDING TIME: WEATHER: WIND BREAK: TYPE OF WELDING MACHINE: ' SIZE: VOLTAGE: AMPERAGE: ROLLWELD: FIXED POSITION WELD: FILLER METAL: SIZE OF REINFORCEMENT- PIPE: O.D.: W.T.: GRADE: SOURCE: BEAD NO. I I SIZEOFELECTRODE J J __ j j NO. OF ELECTRODE I t I j t COUPON LOCATION I J t J J ORIGINAL DIMENSIONS J ' ORIG. AREA SQ. ,N. ,I i ' "!' ' 1 MAXIMUM LOAD I I t I TENSILE STRENGTH, LBS./SQ: IN. J ' ' , ' J i FRACTURE LOCATION I ' i i , J REMARKS ON TENSILE TEST: ........ 1. 3. 4. REMARKS ON NICK-BREAK TEST: 1. 3o, 4 REMARKS ON ROOT BEND TEST' 2. 3. 4. REMARKS ON FACE BEND TEST: 1. 2, 4. [] WELDER ~ QUALIFYING TEST [::] QUALIFIED [] PROCEDURE [] LINE TEST {:::] DISQUALIFIED TEST MADE AT: TESTED BY: SIGNED: INSPECTOR COUPON TEST REPORT REF: APl STD. 1104 ~ Pipe Line Standard Std. 1-4 Continental Pioe Line Company Issue Houston, Texas Aooroved Date PROJECT: AFB: /~'~" CONTRACTOR:. CONTRAC r NO.: ~ LOCATION: A. PRO~ES~: B. MATERIAL: C. DIAMETER AND WALL THICKNESS: D. JOINT DESIGN: -- E. FILLER METAL AND NIJM8ER OF BEADS: F. ELECTRIC.,~L OR FLAME CHARACTERISTICS: G. POSITION: .... H. DIRECTION OF WELDING: I. NUMBER OF WELDERS: : J. TIME LAPSE BE'P,~/EEN PA.SSES: K. T~'PE OF LINE-UP CLAMP:. ,,,"~' L. REMOVAL OF LINE-UP CLAMP: --- M. CLEANING: N. PREHEAT, STRESS RELIEF: O. SHIELDING GAS AND FLOW RATE: P. SHIELDING FLUX: Q...S~EED OF TRAVEL: R. S~(ETCHES AND TASUI,ATIONS (TO BE ATTACHED) TESTED: WELDER: APPROVED: I N~ECTOR: ADOPTED: ¢.~NSTR. SUPT.: WELDING PROCEDURE REF: AP! STD. 1104 /~ Std. T-5 ~ Pipe Line Standard Continental Pipe Line Company h~ue Houston, Texas Aooroved m ...... Oa~e PROJECT: AFE: PIPELINE: {NAME) { LOC.-%T IO N) ,/,~.~ TESTING CONTRACTOR: {NAME) {CONTRACT NO.) ~ {ADDRESS) {PHONE) CCNSTRUCTION CONTRACTOR: (NAMEI (CONTRACT NO.) (AD DR E$$~ {PHON E) PIPE: O.D. W.T. WT. GRADE TYPE SMYP MFG'R.: P.O. REMARKS: TEST FLUID: -- (TYPE) (SOURCE) ADDITIVE: :~-YPE) (QUANTITY PER UNIT VOLUME) SECTION TESTED FROM: MP STA. TO: MP STA. TEST SECTION NO. LENGTH: VOLUME: PUMP LOCATION: MP STA. PRESS RECORDER LOC.: MP STA. .... PUMP DAT. A.: , .GAL/STROKE STROKES/MIN GAL./MIN. MAXIMUM TE~'F SPEC)FlED TEST LOCATION ELEVATION PRES:SURE PSIG PRESSURE :~31G HIGH POINT: LOW POINT: MEASURING POINT NO. 1: MEASURING POINT NO.2:  PRE~SURE ATWHEN STRAIGHT LINE DEVIATION OCCURED: PSIG ~ TEMPERATURES: AMBIENT MAX., MIN.; FILLWATER: .... PIPELINE: - TEST STARTED: AM/PM TEST ENDED: AM/PM (TIME) {DATE) (TIME) {DATE) SECTION ACCEPTED:, SECTION LEAKING: SECTION RUPTURED: LOCATION AND TYPE OF FAILURE: REMARKS: WEATHER: TE~"I'ING CONTRACTOR'S REPRESENTATIVE .... (NAME) {TITLE) (SIGNATURE) (DATE) CON~'I'R. CONTRACTOR'S REPRESENTATIVE {NAME) {TITLE) {SIGNATURE) {DATE) COMPANY REPRESENTATIVE (NAMe) {TITLE) {SIGNATURE) {DATE) CON.~rRUCTION ~.JPERINTENOENT (NA~E) (TITLEJ (SIGNATURE) ~DATE) HYDROSTATIC TEST REPORT REF: APl RP 1110 ~ ~ Pipe Line Standard Std. T-10 Continental Pipe Line Comoany Issue ' Houston, Texas Aooroved " Oate .... PROJECT: AFE: PIPELINE NAME: PIPELINE LOCATION: TESTING CONTRACTOR: CCNSTR. CONTRACTOR: PIPE: O.D,: W.T,: GRADE: MFG'R.: TEST FLUID: [TYPE) (SOURCE) (,TEMPERATURE) ADOITIVE: (.tYPE) . ..~_QUANT!TY) SECTION TESTED: NO. FROM TO LENGTH: VOLUME: PUMP LOCATION: PUMP NO.: .... GALLONS/STROKE: DEADWEIGHT TESTER: LOCATION MFG'R. SN TIME PSIG TEMP. TIME P~JlG TEMP. TIME I:~JIG TEMP. -. STROKES PER 10 PSi: FIRST 100 PSIG LAST 100 PSIG TEST STARTED: ({TIME) AM/FM (DATE) TEST ENDED: ~_ AM/PM... (DATE) SECTION ACCEPTED:. SECTION LEAKING: SECTION RUPTURE: LOCATION AND TYPE OF FAILURE: REMARKS: WEATHER: TESTING COI';TR ACTOR'S REPRESENTATIVE {NAME] (TITLE) {SIGNATURE] IOATE] REPRESENTATIVE {NAME] {TITL,E) {SIGNATURE] {DATE] COMPANY REPRESENTATIVE {NAME] {TI T L.F.c) tSIGNATUREI {DATE] CONSTRUCTION SUPERINTENDENT {NAME] {TITLE] {$1GNATURE. I ID.ATE) REF:A~'IRP~0 FIELD HYDROSTATIC TEST REPORT Pipe Line Standard Std. T-11  Continental Pipe Line Company I~$ue HousTon, Texas Ao~3roved Oate -.- APPENDIX i FORM I HYDROSTATIC TEST Report No. RECORD AND CERTIFICATION Date Company SYSTEM Description From To New Construction ~ Replacement or Relocation E] Pipeline [] Station [] Requalification C] Service Date of System Test Medium: Water E] Other Additive DESIGN DATA Code Pipe Design Data Weld Joint Design Design Spec. & Grade Factor Factor OD WT SMYS Pressure CommenTs - - PRESSURE TEST ....... Test Pressure Should Be Min. % SMY Max. % SMY ELEVATIONS Low Point High Point DWT TEST DATA Began Test Date Time Hour DWT Pressure Temp. Hour DWT Pressure Temp. 1. .5. 2. 6. 3. 7. 4. 8. Failures Location Description Qualification Testing & Recording Witnessed By Date COMPANY Title Company Representative Title Testing Pressures: Max. for % SMYS Min. for % SMYS Qualified to Operate at lor % SMYS Report Checked By Date Approved By Title Company Documents Pressure Temp. DWT Sketch Or Attached Charts [] Charts C Data [] Diagram [] Profile ID Comments / T-12 : PROJECT: AFE: -: PIPE LINE: (NAME} (LOCATIONI ':i ~ CONTRACTOR: .~, PIPE: O.D. W.T. GRAOE MFG'R. '" TEST FLUID: ADDITIVE: TEST SECTION: LOCATION LENGTH: VOLUME: PUMP LOCATION: DEAD WEIGHT TESTER SN: PUMP: IDESCRIPTION} [MFG'R) PLUNGER x STROKE GALLONS PER REV. ! CONTRACTOR REPRESENTATIVE COMPANY REPRESENTATIVE PRESSURING LOG DATA SHEET REF:APt RP 1110  Pipe Line Standard Std. T-13 [~;~r]~{~{~) ~ Continental Pipe Line Company Issue Houston, Texas Aooroved Oate SECTION VI INSTRUCTION TO BIDDERS AND DESCRIPTION OF BID ITEMS SECTION VI INSTRUCTION TO BIDDERS AND DESCRIPTION OF BID ITEMS 6.1 General This Job includes all work and material furnished by the Con- tractor as described ih the Specifications and all work described on the Drawings whether or not specifically mentioned in each. The Contractor shall use the following description of work to be done as general guide in preparing the Uniform Bid Sheets but shall bid completion of all work as described on the Drawings and in the written Specifications, whether or not specifically referred to in Section 6.3. The Lump Sum Bid is for all labor and materials for excavation, piping, backfilling and earthwork whether accomplished by equip- ment or by hand, moving materials, and equipment to test the facilities prior to operation to the satisfaction of the Company. Unit Cost for Extra Work, Wage Rate Schedule for Extra Work and Equipment List and Rental Schedule sheets shall be completed by the Contractor to provide the Company a fixed rate for any extras that the Company may wish to have completed while the Contractor is still on location. 6.2 Instruction to Bidders Bid Document - The Bid Document will eventually form part of the Specifications as defined in General Conditions. The Bidder is required to check his issued set of the Bid Documents in order to insure that they are complete. Completeness of Bids - The Bidder is to complete and return all the forms stipulated within the Specifications. Similarly all information stipulated within the Specifications shall also be supplied and incorporated into the Bid. Issue of Addenda - Prior to the date for submission of Bids, the Company may issue addenda to clarify or modify the Specifica- tions. A copy of each addendum will become part of the Speci- fications. Receipt of each addendum must be acknowled§ed in writing. Bid Expense - Bidders will not be reimbursed for any expenses incurred in the preparation of submission of bids. Instruction for Returning Bids - Bids must be returned in sealed envelopes endorsed "Bid for Northlake Woodland East Phase VI." Bids shall be treated confidentially. Bids must be sent by registered mail or Express Carrier. VI-1 Cover Letter Conditions and Addenda - Bidders proposals shall be in accordance with any specific conditions outlined in the letter transmitting the bid Request and any addenda issued prior to submission of bids. Both the letter of transmittal and addenda will become a part of the Agreement. Exceptions to Bid Requirements - Bidder's price shall cover the Job in accordance with the Specifications. Any exceptions to these requirements shall be cited with the proposal as separate items, fully explained and alternative given, including the amount to be added to or deducted from the Bid Price. The Company may accept or reject the changes or alterations. However, all will be considered in selecting the successful Bidder. Price Schedules of Prices and Workin9 Hours - The Bid price shall cover and shall be deemed for all purposes to cover the due completion of the Job and the performance of all the Contractor's obligations contained in the Specifications and without prejudice to the generality of the aforegoing, the Bid Price shall include the supply of all services and requirements as specified in the Specifications including for all materials, labor, equipment, transport and all other things and the payment of all costs incurred in the performance of the Job other than those items specifically stated as being supplied or paid for by the Company. The Bidder shall complete the Schedules of Prices attached inserting all details called for, including information for each item and alternative listed. The Bidder shall also state his normal working hours per day and days per week in the Bid. Starting and Completion Requirements - The Job shall commence on or before the date and be completed within the period stipulated in the letter transmitting the Bid Request. The Bidder is to confirm his understanding of and give a firm undertaking to abide by this performance requirement on the Bid Form. Sufficiency of Bids - The Bidder shall carefully examine the Specifications and shall be deemed to have satisfied himself before bidding as to the correctness and sufficiency of his bid for the Job and of the rates and prices stated in the Schedule of Pric~s and any quantities stated, which Bid, rates and prices shall cover all of his obligations under the Agreement including all taxes, assessments, fees, contributions, insurance, wages and salaries, holiday pay, pension and similar funds, special conditions payments, bonus, traveling allowance, payments in respect of time loss due to inclement weather, small tools, site supervision, main office charges, escalation on labor and materials, freight charges, specific supplied service charges, and all other expenses applying to work of the Contractor. VI -2 Summaries and Proposal Communications Not Permitted - Proposals shall not contain any recapitulation of work to be done. Oral, telegraphic or telephone proposals or modifications will not be accepted. Verification of Information - Where the Bidder is in any doubt as to the true meaning of any part of the Specifications, he shall notify the Company and request clarification before submitting his bid. Such clarifications will be valid only if made by the Company by means of formal addenda in accordance with Issue of Addenda. The burden is on the Bidder to request any such additional information, explanation or clarification of ambiguities or discrepancies he requires regarding the Job as described in the Specifications before submitting his bid. No claim for additional payments will be admitted during the progress of the Job as a result of subsequent explanation or adjustment or on the grounds of lack of information should the Bidder fail to act in accordance with the foregoing. Visit to Site - The Bidder is urged to visit the Job site and pipeline route to fully inform himself as to all existing conditions, facilities and limitations. Discussions with the Inspector regarding specific area work and safety practices with which the successful Bidder must comply is also encouraged. In preparing his bid, the Bidder shall be deemed to have acquainted himself with the construction site and pipeline route, terrain and access, taking into account all obstacles and to have provided for overcoming such obstacles in his Bid Price. All queries are to be cleared with the Company before bids are submitted. No claims on the grounds of insufficient or inaccu- rate information will be entertained. Bidders wishing to visit and inspect the Job site may do so at their own convenience. A formal reconnaissance will not be held. Acceptance of Bids - The Company reserves the right to reject any or all bids, and no public opening of bids will be made. Further, the Company may award separate contracts for any or all of the alternatives as listed in the Bid Form Acceptance of General Conditions - Bidders shall indicate in their proposal acceptance of an agreement with the General Conditions or clearly state any exceptions or additions. Successful Bidder - The successful Bidder will be expected to enter into an Agreement with the Company using the Memorandum of Agreement contained in these specifications. Closin~ Date - The closing date for receipt of bids is stipulated in the letter transmitting the Bid Request. VI-3 Award of Contract and Commencement - A Contract will be awarded as soon as possible after review of all bids submitted. Bids must remain valid for at least 6 months from the bid closing date. Information for Evaluation of Bids - The bidder must include with his proposal all undertakings and information required by the Company to make a complete evaluation of his bid, which undertak- ings and information should in any event include as a minimum the following specific data: a) details of the construction methods and procedure it is proposed to adopt b) exceptions to bid requirements c) Schedules of Prices and details of working hours d) confirmation of completion schedule e) confirmation that General Conditions are acceptable f) details of any alternatives proposed g) details of any associations or joint ventures it is proposed to form for carrying out the Job, if any h) details of any existing major pipeline works or other major commitments Contractor may have during proposed construction period i) a list of the supervisory personnel the Contractor proposes to deploy for the Job j) details of those parts of the Job, if any, that the Contractor intends to subcontract k) a brief resume of the project manager, who would be assigned to the Job, with an outline of this field organization and qualifications and experience. l) information on the office location where engineering, procurement, and coordination of the Job will be carried out. 6.3 Description of Bid Items The bid item descriptions which follow are meant to serve as a supplement to the Drawings and written Specifications and an aid to the Contractor in preparing the Uniform Bid Sheets. Although these descriptions are reasonably specific, they are in no way a complete listing of all work which is to be included in the price and should not be interpreted as such. VI-4 Bid items shall include the cost of all labor, equipment and materials (except those furnished by the Company as described in Section IV) to completely install all materials and equipment and to complete all other work associated with construction of the new pipeline segment as described on the Drawings and in these written Specifications. 1) 6" Products Pipeline Construction - This item includes the clearing and grading of working width, ditching, unloading, stringing, welding, joint coating, lowering in, installing of test leads, hydrostatic testing, backfilling, removal, cutting and hauling of abandoned pipe, and clean-up of the right-of-way of the 6-inch products pipeline in Coppell, Texas. VI-5 EXHIBIT B UNIFORM BID SHEETS EQUIPMENT LIST AND RENTAL SCHEDULE FOR EXTRA WORK WAGE RATE SCHEDULE FOR EXTRA WORK /l CON-DOR PIPE LINE COMPANY NORTHLAKE WOODLAND EAST PHASE VI DEVELOPMENT RELOCATION UNIFORM BID SHEET The Items listed below comprise the bid for the construction of the 6" Con-Dor Products Line in its entirety as described in Section I through VI of these specification and as outlined in the Description of Bid Items Section. I tern Amount (1) 6-inch Products Pipeline Construction $ The above price includes all taxes, licenses, fees, assessments, and charges applicable to this Contract, the materials and supplies furnished by Contractor and used in the performance of the contract, or the services performed by the Contractor or any subcontractor, now or hereafter imposed by any governmental agency, authority, or subdivision. If awarded the contract for the construction of the above listed items, we will complete the project within 35 calendar days after notification to begin. Federal Employer Registration No. State of Texas Employer Registration No. State of Texas Contractors License No. Signature: Printed Name: Title: Company: Address: City, State, Zip Code: Telephone Number: Date: NORTHLAKE WOODLAND EAST PHASE VI RELOCATION EQUIPMENT LIST AND RENTAL'SCHEDULE Equipment Classification Hourly Rate Daily Rate Note: Rates for equipment indicated above are on a maintained basis, including operatin9 labor, oil, grease, fuel, and other supplies and including repair parts, repair labor, taxes, license fees, rentals, insurance, supervision, overhead, profit and all other costs inci- dental to use of equipment furnished by Contractor; and Contractor shall be solely responsible for all injury to or destruction of such equipment while he is employed in work under this contract. The above rates apply only for the time the equipment is in actual use on the job. NORTHLAKE WOODLAND EAST PHASE VI RELOCATION WAGE RATE SCHEDULE WAGE PER HOUR Expense (See Note) Allowance Straight Classification Per Da~ Time* Overtime ( hours per day shall be worked on straight time)* Note: Rates for extra work as shown above, include applicable insurance, taxes, benefits, overhead, and profit. We will pay "an extra" for applicable foreman but not for superintendents. *Contractor is required to specify the number of straight hours per day before overtime rates apply. ? CON-DOR PIPE LINE COMPANY NORTHLAKE WOODLAND EAST PHASE VI RELOCATION UNIT COST FOR EXTRA WORK Classification Unit Cost A. Replacement of Backfill Material $ (Including disposal of existing spoils) B. Dirt Excavation Manual (Per Cubic Yard) $ Machine (Per Cubic Yard) $ C. Backfilling Manual (Per Cubic Yard) $ Machine (Per Cubic Yard) $ D. Cutting Out, Rebeveling, Rewelding (Per Weld) Cutting & Beveling $ Welding $ E. Replace Defective Joint (DRL) Before Backfill $ After Backfill $ F. Cost of Welds Cut Out by Inspector Which $ Proved Satisfactory G. Laying of Additional Pipe (Includes Stringing, Welding, Coating, Ditching, & Backfilling, Per Foot) 6 Inch $ H. Cost of placing lowest point of crossing to a greater depth (per linear foot of lowered line). One foot deeper $ /L. ft. Two feet deeper $ /L. ft. Three feet deeper $ /L. ft. ADDENDUM I INSURANCE CERTIFICATE NOTICE TO CONTRACTORS, AGENTS AND INSURANCE COMPANIES. PLEASE COMPLETE AND RETURN THIS FORM TO Conoco lac. CER. TIFICATE OF IHSUR.ANCE This is to certify that the following insurance policies, issued by Name of Insured Address INSURANCE POLICIES IN FORCE A. Workmen's Compensation Statutor"y ~.Employers' LiablLi. ty $ each accident B. General Public Liability Bodily Injury  Ii each occurrence Property Damage ' $ aggregate C. Automobile l.iab~lity $ each ~erson Bodily Injury ~ $ ea~ a~ident $ each acciden~ Prope~y Damage J D. Aircr~i Liabilily B~ily lni~ (O~er Pa~engers ~ $ ~ch ~cciden~ $ each ~rson Pain,er Liability $ ea~ accident $ ea~ accident ~o~rty Damage ~. Hull and Mac~th~ ( Name o[ Vessel) F. Protection and Indemnity { Name o{ Ves~ei~ ~ G. Drilling Equlpmen,t Floater $. ADDENDUM II RECEIPT CERTIFICATE OF PIPELINE AND TERMINAL SAFETY MANUAL CONTRACTOR'S RECEIPT FOR THE CONTINENTAL PIPE LINE COMPANY PIPELINE AND TERMINAL SAFETY MANUAL I as an authorized representative of have received copy of the "Pipe Line and Terminal Safety Manual," published by Continental Pipe Line Company. These requirements will be complied with while performing work for Conoco Inc. and/or Continental Pipe Line Company or any of its subsidiary companies. Date Signature ADDENDUM III CONTRACTOR'S AFFIDAVIT CONTRACTOR'S AFFIDAVIT Place Date (Contractor) by and through its (Name) (Title) does hereby and herewith declare that all labor costs, bills for materials, supplies, utilities, including any taxes thereon, and all other things furnished or caused to be furnished by the above named Contractor and used in the execution of the contract dated for between and Con-Dor Pipe Line Company have been fully paid, and that there are no unpaid claims or demands of subcontractors, materialmen, mechanics, laborers or any others resulting from or arising out of any work done or ordered to be done by said Contractor under the above identified contract; and declares: That all Federal and State payroll taxes and contributions for unemployment insurance, old age pensions, annuities, and retirement benefits imposed or assessed under any provision of any law, State or Federal, and measured by wages, salaries, or other remuneration paid by said Contractor to employees of his own or subcontractors engaged in said work, or in any operation incidental thereto, have been paid. (Contractor) By: Subscribed to and sworn before me this __ day of , 19__. SEAL: NOTARY PUBLIC My commission expires: ADDENDUM IV MEMORANDUM OF AGREEMENT MEMORANDUM OF AGREEMENT THIS AGREEMENT, made and entered into this ~ day of 1986, by and between Con-Dor Pipe Line Company, a Texas ~-~poration, with offices in Houston, Texas, as first party, hereinafter designated as COMPANY, and , with offices in , as second party, hereinafter designated as CONTRACTOR. W I TNE SSETH THAT In consideration of the covenants and agreements hereinafter contained to be performed by the parties hereto and the payments hereinafter to be made, it is mutually agreed as follows: Except as may be amended by this Memorandum of Agreement, CONTRACTOR agrees to furnish and pay for all material, labor, tools, supplies, utilities, equipment, and other facilities in the manner in which COMPANY has outlined in the Specifications, a copy of which is attached hereto, marked "Exhibit A", and made a part hereof. CONTRACTOR hereby specifically agrees to and accepts all conditions and obligations expressed in said Specifications which are imposed or required to be assumed by CONTRACTOR as though such obligations and conditions were set forth at length in this Memorandum of Agreement. Where a difference exists between the provisions of this Memorandum of Agreement and the Specifications, this Memorandum of Agreement shall apply. II. CONTRACTOR covenants to and with COMPANY that the said Specifications including exhibits made a part thereof, have been carefully examined and studied and that CONTRACTOR is familiar with the uses and purposes for which they are intended. III. For the work to be performed, CONTRACTOR agrees to accept and COMPANY agrees to pay CONTRACTOR, in the manner provided in the Specifications, the total sum of $ , as shown on the Bid Sheets dated , 1986, a true copy of which is attached hereto, made a part hereof, and marked "Exhibit B". COMPANY'S rights and CONTRACTOR'S rights to terminate and cancel this agreement shall be as shown in Section 1.28 of the Specifications and in Article IV hereof. Ve CONTRACTOR shall commence construction work within 5 calendar days after receiving written notification, to commence and shall complete all work ready for operation within 30 calendar days after work commences. VI. CONTRACTOR is, and during performance hereof will continue to be, registered as an employer under such federal and state laws as are appli- cable, and CONTRACTOR'S employer registration numbers thereunder are: Federal: State: VII. Any notice provided for herein or in the Specifications may be given by registered mail as follows: A. By COMPANY to CONTRACTOR, addressed to: B. By CONTRACTOR to COMPANY, addressed to: Con-Dor Pipe Line Co. c/o Continental Pipe Line Company 1909 Southwood Drive Lake Charles, LA 70605 Attention: Marcus Dominguez Project Engineer VIII This Agreement shall inure to the benefit of and be binding upon the parties hereto, their successors and assigns, provided, however, that the obligations imposed upon CONTRACTOR hereunder are personal, and CONTRACTOR may not sublet or assign this agreement or any rights or benefits hereunder without securing COMPANY'S prior approval in writing. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Agreement as of the day and year first written above. CON-DOR PIPE LINE COMPANY By: (Title) (Contractor) By: (Title) CON-DOR PIPE LINE COMPANY CONSTRUCTION QUOTATION Contractor's List Apache Pipeline Contractors, Inc. P. O. Box 15097 Fort Worth, Texas 76119 Attn: Ed Whisenant Ayres Welding Co. P. O. Box 124 Holiday, Texas 76366 Attn: C. U. Ayres Driver Pipe Line Company, Inc. 2019 Ruder Dallas, Texas 75212 (214) 638-7131 Attn: Jess Keever Exl~ess Pipe Line Conq~ny P. O~'"Box 7~.9 Fort W~exas 76179 At..tl~r~Don~la~z) Pruitt Sunland Construction, Inc. P. O. Box 1087 Eunice, La. 70535 (318) 456-0241 Attn: James Daigle Watkins Construction Company, Inc. Rt. 3 Hillside Drive South Corsicana, Texas 75110 (214) 872-1791 Attn: Jerry Watkins