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LCC Modeling as a Decision Making Tool in Pipeline Design             473


        In the paper by S@rheim and Bai (1999) a detailed development of the Risk Analysis is given.
        This chapter discusses the different methods of  determining the Probability of  Failure and
        Consequence Modeling.

        25.3.2  Probability of Failure
        In  determining  the  probability  of  failure  two  different  levels  of  failure  causes  can  be
        identified, direct failure and indirect failure. Direct failures are related to physical aspects of
        the pipeline failing, such as corrosion, fatigue or on-bottom stability. Indirect failures pertain
        to system or human errors which may eventually lead to a direct failure. The direct failures
        can be determined using structural reliability analysis. For reliability analysis to be considered
        a probabiIity of  failure, it is necessary to incorporate a deterministic value for human  error
        (usually a factor between 5 and lo). The indirect failures can be modeled using a number of
        quantitative  risk  analysis  techniques  including  event  tree  analysis.  Both  the  structural
        reliability analysis and quantitative risk analysis techniques are developed fully in SHheim
        and Bai (1999).
        25.3.3  Consequence

        1.  General
        Consequence is the determination of the possible outcome(s) of a failure event. Two methods
        are available to measure the consequences of a release event, these are consequence modeling
        and the interval method.


           Consequence modeling - This is an analytical method which assess the sequence of events
           after a  failure has  occurred. The  different  stages  that  occur  after a  release  include;
           discharge, dispersion, ignition, combustion and damage and loss. This method is discussed
           further in Sgjrheim and Bai (1999).

        0  Interval method -  The  second, Interval method  is  an  approximate method.  By  using
           engineering judgement and historical data it is possible to give estimated upper and lower
           bound consequence scenarios. This allows a scope of  different consequence scenarios to
           be evaluated, thus a decision can be reached on which  scenario best suits the philosophy
           of  the  decision-maker, (optimist- low  consequences, pessimist- high  consequences  or
           othcr).


        The different types of consequences that are likely to occur as a result of a release event are:

        0  Cost associated with averting fatalities and injuries
           Environmental damage
        0  Production Loss
           Material Repair

        Cost Associated with Averting Fatalities and Injuries
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