Midstream/Pipeline

URS is one of the world’s largest engineering, construction and technical services firms. We are a FORTUNE 500 Company providing services for industrial and commercial, power, infrastructure, and federal projects and programs worldwide.

Solutions for the Appalachian Basin Midstream and Pipeline Markets

Oil & Gas Midstream & Pipeline Services Appalachian Basin

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Answering the Challenge With several decades of midstream and pipeline experience, we have identified a list of common project challenges. Projects are typically schedule and budget-driven as clients work to get product to the market profitably and efficiently. Those challenges can be summarized as follows:

Coordinating a Broad Service Offering Resource constraints are leading clients to become much leaner organizations. Most client project managers are asked to manage multiple interfaces. It is conceivable that a client would use a separate contractor for each discipline within the project. For midstream and pipeline projects, a project manager might have separate contractors performing survey, right-of-way, permitting, engineering, procurement and construction. By offering all of these services through local offices in the Appalachian Basin, URS helps reduce the number of contractors needed to be retained by the client and integrates the services into a single offering.

Design One, Build Many Predictable production rates in the Appalachian Basin allow for a factory model of executing facilities projects. Our design-one, build many approach accommodates site-specific requirements and allows for optimization of design over time. By eliminating repetitive engineering, we are able to streamline the design effort and drive down the total installed cost for similar, consecutive projects. This approach also allows for remote fabrication and testing of equipment, which correlates to reduced field construction and a better overall safety record.

Old Challenges, New Technology Advances in computer-aided design tools are leading to much more user-friendly interfaces. By simplifying this function, these design tools allow us to continually improve the quality of our work product. URS is at the leading edge in using these tools. Some are third party and others developed internally based on our years of experience in design. Our pipeline systems database (URS Pipe Book) is one of many examples.

Field Services—Anywhere, Anytime The demand for pipeline Construction Management and Inspection personnel is projected to steadily increase over the next four years. Being able to provide proven resources in the given timeframe will be key to meeting a lot of conflicting project needs. URS has created a field services operation focused on this part of our business and has provided the tools and resource base to provide consistent delivery of these services.

URS is here to serve you in all of your project needs. With dedicated

staff and resources, we can help you get your gas to market faster.

National Presence, Local Knowledge As clients expand into new operating regions—either by organic growth or by acquisition, they might face significant resource and regulatory challenges. In order to respond to market drivers, they are often mobilizing quickly, without much time to plan for resources or set up infrastructure. If the client is new to an area, then they are confronted with a myriad of unfamiliar local, regional and state regulations. URS’ philosophy of being geographically diverse has created a U.S. network of approximately 300 offices. These offices are staffed with local experts that are able to assimilate new clients into a new regulatory environment.

In reviewing each of these challenges we offer the following:

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National Presence, Local Knowledge Today, projects are developing in parts of the country (the Appalachian, Bakken, Eagle Ford) that have not seen significant Oil and Gas work in recent times. As such, the presence of local qualified resources for the execution of these projects is very limited. URS is positioned to offer this unique capability with our geographic foot print of over 300 offices across the United States. This provides resources in close proximity to the projects, but also local knowledge and familiarity with the regulatory entities, local suppliers, and contractors. Building on our long term strategy of being close to our clients, as of today, we have offices in 49 of the 50 United States. This local presence allows us access to your operations while minimizing long distance travel costs. It also provides resources that are known to the regulatory entities in the locale and provides that important “local” interface demonstrating our commitment to maximizing business with local companies. All of these locations include environmental professionals that are familiar with, and help navigate our clients through the different regulatory requirements from by, county, or municipal entities.

In the Appalachian Basin, we have saved our clients more than 60% of overall travel costs by conveniently

working in close proximity to project locations from our 15

strategically located offices in the area. Additionally, we have

accelerated permitting timelines for our clients by leveraging our

longstanding relationships with regulatory staff within the Basin.

URS’ current operations in the Appalachian Basin plays house over 3,000 professionals to support EPC development of your projects.

Haynesville ‐Bossier

Shale Gas Plays

Appalachian Basin

Barnett

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Coordinating a Broad Service Offering For the foreseeable future, resource and talent constraints, accelerated project schedules, and complex regulatory burdens, will challenge the operating environment. The market is further complicated by the fact that very few midstream and pipeline sector service providers are able to offer a full range of services. For a single project, a project manager may contract with a different provider for survey, right-of-way, permitting, engineering, procurement and construction. This requires a significant investment in time to coordinate the data or deliverables from each supplier. As most of the information is interconnected, it is essential that the client is able to assure that each contractor is using the correct information and that all parties are getting real-time updates of geospatial data. By using an integrated service provider like URS, the client eliminates the cost of managing multiple service providers. It also places the responsibility for data management with a single contractor and eliminates the need for the client to manage the interface between multiple service providers. On the rare occasion that we need to use a specialized subcontractor, URS project managers are still able to monitor the work of subcontractor according to the scope, schedule and budget of the project. URS assigns a single project manager as the point of contact with a client for a specific project. This guarantees the client a very simple communication interface with URS. It also provides a single point of accountability within the URS organization for all work related to that project. URS project managers have significant midstream and pipeline experience and are constantly training within the URS system so that they meet our rigorous quality and performance standards.

Today, URS has overall management responsibility for

right-of-way, permitting, survey, logistics, engineering, procurement

and construction support for approximately 160 miles of new

natural gas pipelines. By offering our integrated solutions

approach, owner resources required for the project were much

lower than the typical execution strategy.

Owner Project Manager

URS Project Manager

Safety Manager Project Controls

Right-of-Way Pipeline Design

Environmental

Field Survey

Facility Design

Procurement

Constructability

URS Integrated Project Delivery

An example of the value of this organizational structure is seen in our current work with Piedmont Natural Gas on the Wayne and Sutton Pipelines projects. We have created a project management structure where we oversee a combination of self-performed services. URS manages six different subcontractors where Piedmont can look to URS for single-source accountability.

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“Design One, Build Many” Capital Project Execution

In order to be successful in the U.S. onshore energy market, our clients are looking for ways to work faster and reduce the cost of their projects. The use of standard designs will allow clients to keep up with the rapid pace of drilling and completion operations. URS challenges every project team to apply its experience to identify cost reduction opportunities to benefit our clients’ project financial performance. URS is providing engineering, procurement services and construction management for well pad facility projects from conception through commissioning. We have played an integral role in reducing per well installed costs (both engineering and capital cost expenditures) through development of “plug and play” modular designs and efficient project execution. Plug and play designs are easily replicated using one of our 3D design platforms. These tools provide very accurate designs, give built in dimensional checking and provide visual representations of the projects that aid in Owner reviews. In taking the “design one, build many’ approach, we produce IFC deliverables for additional facilities with minimal cost while also leveraging economies of scale during procurement. Engineering and design savings have achieved a 32 - 38 % reduction in the cost of engineering and a 10 – 20 % reduction in construction costs for well pad construction and installation of production equipment. The anticipated total value of ongoing project savings, based on the full development program, is in excess of $5 MM for one of these programs.

$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$251,125.00

$165,066.00

C

o

s

t

Facility Location

Engineering/Procurement/CM Cost

Reduced cost from the “A” Facility to the “C” Facility from $251,000 to $165,000. Savings: $86,000 per site

$520,000.00

$540,000.00

$560,000.00

$580,000.00

$600,000.00

$620,000.00

$640,000.00

$637,400.00

$565,600.00C

o

s

t

Facility Location

Material Cost

Reduced material costs from Facility “A” to Facility “C” from $637,000 to $565,000. Savings: $72,000 per site

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Tools to Support Efficient Execution In today’s global Pipeline industry, one of the most challenging issues is communication, coordination, and data sharing among project team members. As capital projects rarely involve a centrally localized team; collaborative efforts; clear, timely and accurate interaction and exchanges are critical to the success of any project. A formal process of information sharing where team members request or route data can develop during large capital project execution. As requests usually are not sequential in nature and only increase in number, project progress is hindered as management is generally required to authorize or facilitate each data request or transfer.

Typical communication techniques have included meetings, conferences, data share points (FTP site) and e-mail. While each has its own purpose, none are all inclusive. With a large and scattered design team, overseeing these types of communications exhaust valuable resources on a project. Pipe Book is specifically designed to function as the communication nucleus for pipeline projects. All communication and data exchange for the project team, regardless of their location, can be accessed, logged and archived within Pipe Book 24 hours a day. Pipe Book, a web-based, operational and project tool, is designed to be intuitive and secure. It harnesses the power of GIS and the portability of the internet. Pipe Book provides end-to-end confidentiality with three levels of authentication and data transfer as secure as institutional banks. After selecting a point on the pipeline route, Pipe Book enables you to see any referenced drawings and data intersected with that point. Referenced information that can be loaded into Pipe Book includes drawings, specifications, design requirements, construction specifications, plats, surveys, procurement data, environmental information, and right-of-way. Pipe Book’s interactive and collaborative functionality allows the user to identify project task areas, such as inspection reports. Task areas can be identified and assigned to users by managers while reports, photographs and videos can be uploaded by field personnel. Completion reports and graphs can be generated in real time.

Pipe Book provides a common data platform that can be securely accessed by all project team

members, Owners and subcontractors.

Project FEED Study

Preliminary Route Evaluation / Hydraulic Modeling

Environmental Desktop Review

Road and Railroad Crossing

Right-of-Way

Mainline Detail Design

Route Finalization

Survey Permissions

Centerline Staking

Constructability Review / Finalize Construction Route

Environmental Direct Assessment Survey

30 Year ROW Study

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Utilizing our database of 1,500 field resources, we were able to

quickly mobilize two survey crews to compress a swing schedule

before snow season.

Field Resources—Anytime, Anywhere Historically major long distance pipeline projects can be substantially impacted by the availability of qualified survey, construction management and inspection resources. Projects like the TransCanada XL pipeline could require in excess of 200 inspectors over a two year period. To support major projects and the day to day needs of our ongoing customers, URS has created a dedicated pipeline field services operation for the provision of these services. This team is led by field staff with extensive construction experience. They are able to structure employment contracts that fit the needs of the individual, as we provide resources on a direct hire or contract basis. This allows all employees and clients to choose what best fits their personal needs or project teams, whether it’s full benefits or the flexibility of contract employment. Anchored by a database of over 1,500 work histories of pipeline construction staff, we have ready access to resources and can respond to rapid requests for resources. As an example, on the Pennsylvania Gas and Electric pipeline project, we mobilized two different crews of five survey teams each, for a total of 28 surveyors, in a two week timeframe in an effort to compress the swing schedule before the snow season. Our team completed assignments on schedule which eliminated increased costs to the owner for dealing with cold weather conditions.

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WHY URS? URS is committed to providing the most qualified people and resources for every project. With a highly qualified staff of more than 47,000 engineers, scientists, planners and architects, URS evaluates each project and commits the appropriate personnel and resources for the life cycle of the project. We are strategically located in the heart of the Appalachian Basin, with satellite offices in all of the major operating areas. We have experts with a thorough understanding of local, regional and state regulations and are integrated into the local communities where our clients work and live. In addition to their dedication to the technical profession, our people, as local residents, have a personal stake in the intelligent and safe development of these abundant natural resources. We are eager to fulfill your project needs with the experience and resources that make URS a leader in the industry. In considering support for your projects, remember these key points: Local Knowledge and Presence – Our network of 300 offices in the U.S.

provides both experience and knowledge in close proximity to your projects.

Coordinating Multiple Entities – We are accustomed to managing integrated services and have the depth in resources to help leverage small owner organizations.

Design One, Build Many Methodology – Planning our projects across a portfolio of projects, rather than on an individual basis, reduces inefficiencies and increase cost and schedule savings opportunities across project phases.

Technology to Support Project Execution – Tools like URS Pipe Book, which provide a database platform for both compilation of data and sharing of appropriate data with multiple parties, and 3D Design tools help drive down the cost of services.

Predictability and Availability of Field Resources – Whether you need 5, or 50, URS has the organization to provide qualified field staff in a timely fashion.

For more information contact:

URS Corporation is a fully

Integrated engineering,

construction and technical

services organization with the

capabilities to support every

stage of the project lifecycle. We

offer a full range of program

management; planning, design

and engineering; systems

engineering and technical

assistance; construction and

construction management;

commissioning; operations and

maintenance; and

decommissioning and closure

services.

URS has approximately 47,000

employees in a network of offices

in more than 40 countries.

Andrew Ghiz Vice President

Midstream & Pipeline Services URS Process Engineering

10550 Richmond Avenue Suite 155

Houston, Texas 77042 720-889-9429 Direct Line

281-253-2220 Mobile [email protected]

David Beachler Vice President

URS Corporation 501 Holiday Drive, Suite 300

Pittsburgh, PA 15220 412-503-4600 Direct Line

412-600-5460 Mobile [email protected]

Rick DeCesar, Ph.D. Appalachian Basin Midstream

Services Leader URS Corporation

501 Holiday Drive, Suite 300 Pittsburgh, PA 15220

412-503-4574 Direct Line 412-894-6207 Mobile

[email protected]