CONSTRUCTION SPECIFICATION FOR PIPELINE

RIGHT-OF-WAY

URUGUAY TO BRAZIL PIPELINE

PREPARED FOR

BRITISH GAS / PAN-AMERICAN ENERGY

GASODUCTO CRUZ DEL SUR

INTEC PROJECT H-1096.02

FEBRUARY 1999

0 FEB-01-99 ISSUED FOR INVITATION TO

TENDER
B DEC-10-98 ISSUED FOR CLIENT APPROVAL /
REVIEW CLR RJP GG II

A1 NOV-24-98 ISSUED FOR IN-HOUSE REVIEW CLR RJP GG

REV. DATE DESCRIPTION BY CHKD APPD CLIENT

 Specification No. H-1096.XX
Rev. X/Page 2
Date

SPECIFICATION NO.: H-1096.02-CS-001

 Specification No. H-1096.02-CS-001
Rev. 0/Page i
Feb.-99

TABLE OF CONTENTS

1 SCOPE 1
2 CODES AND STANDARDS...............................................1
3 CONSENTS, PERMITS, LICENCES AND AUTHORISATIONS. 1
4 MINIMIZE DAMAGES AND INCONVENIENCES...................1
5 COMPANY PROVIDED RIGHT-OF-WAY.............................1
5.1 WIDTH OF RIGHT-OF-WAY................................................2
5.2 CLEARING RIGHT-OF-WAY.................................................2
5.3 GRADING THE RIGHT-OF-WAY...........................................4
5.4 FENCES, TELEPHONE AND UTILITY SERVICES (ABOVE AND
UNDERGROUND)............................................................5
5.5 CROSSING OF RICE FIELDS...............................................6
5.6 GENERAL.........................................................................7
6 ACCESS AND TRAFFIC PLANNING...................................8
 Specification No. H-1096.02-CS-001
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1 SCOPE
The WORK required under this specification includes the furnishing of all
supervision, labor, mobilization of materials and equipment, and services
necessary for and reasonably incidental to the clearing, grading and
preparation of the WORKING WIDTH in a manner satisfactory to the
COMPANY.

2 CODES AND STANDARDS

The CONTRACTOR has the responsibility of compliance with all the
applicable regulations, codes, standards and specifications. In the event
of any apparent conflict between this specification and any such applicable
regulation, code or standard, or in the event of disagreement concerning
the requirements of any such applicable code, regulation or standard, or in
the event of a disagreement concerning the requirements of any such
applicable code, regulation or standard, the COMPANY shall have the
right, but not the obligation, of interpreting the regulations, codes,
standards, and specifications and their application to the WORK. The
COMPANY’s decision on any disputed interpretation shall be the final
resolution of the dispute.

3 CONSENTS, PERMITS, LICENCES AND

AUTHORISATIONS
The CONTRACTOR is required to obtain and/or procure all consents,
permits, licenses, authorizations and all such approvals required during
the design, engineering, construction, pressure testing and pre-
commissioning stages of the WORK other then those that are specifically
indicated as being obtained by the COMPANY.

4 MINIMIZE DAMAGES AND INCONVENIENCES

In addition to complying with the specifications and special provisions of
the CONTRACT documents, the CONTRACTOR shall, to the greatest
degree possible, perform the WORK at all locations so as to minimize
damage to the rights-of-way, and to minimize inconveniences to the
interests of the land owners and tenants.

5 COMPANY PROVIDED RIGHT-OF-WAY

The COMPANY shall provide right-of-way within which the PIPELINE shall
be constructed and the right of ingress and egress to and from the
 Specification No. H-1096.02-CS-001
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WORKING WIDTH. Such right-of-way, wherever feasible, shall be the

width as stated in the special provisions of the CONTRACT documents.
Where it is not feasible for the COMPANY to secure the width indicated in
the special provisions of the CONTRACT documents, the CONTRACTOR
shall comply with the terms of the right-of-way easement and all
environmental permit conditions.

5.1 WIDTH OF RIGHT-OF-WAY

5.1.1 The width of the right-of-way across streets, highways, railroads, and other
public right-of-ways shall comply with such specifications required by the
authorities having jurisdiction over such thoroughfares. It is the
responsibility of the CONTRACTOR to become familiar with, and comply
with these local specifications.

5.1.2 WORKING WIDTH and WORKING AREA secured by the COMPANY will
be as illustrated on alignment sheets. The CONTRACTOR may request
the COMPANY to provide additional WORKING AREA or additional
accesses to the WORKING WIDTH. Refer to Scope of Work (SECTION 3
of CONTRACT). The COMPANY may attempt, but is not obligated, to
obtain these additional WORKING AREA or additional accesses.

5.2 CLEARING RIGHT-OF-WAY

5.2.1 CONTRACTOR, before starting any clearing operations, shall comply with
all special provisions included in the CONTRACT documents, right-of-way
easements and environmental permits secured by the COMPANY. The
WORKING WIDTH shall be cleared over its entire width, unless restricted
by the terrain or other features shown on the 1:10,000 Drawings in
SECTION 9 (Contract Information).

5.2.2 Subject to the special provisions of the right-of-way easements, the

CONTRACTOR shall confine all WORK to the width of the right-of-way.
Such right-of-way shall be indicated in either the special provisions of the
CONTRACT documents for the job under which the WORK is being
performed, or in the right-of-way easement documents.

5.2.3 The CONTRACTOR shall protect all shrines, monuments, and sites of
interest. If it is necessary to remove a number of these items for
safekeeping, the CONTRACTOR shall contact the responsible authorities
or persons concerned in advance and shall fully conform to their
requirements. The COMPANY shall also be advised in advance of any
actions to be taken by the CONTRACTOR.
 Specification No. H-1096.02-CS-001
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5.2.4 Where blasting is considered necessary, CONTRACTOR is to comply with

the Blasting specification H-1096.02-CS-005

5.2.5 Where timber is encountered it shall be subject to all special provisions of

the right-of-way easement and the special provisions of the CONTRACT.
The right-of-way shall be cleared to the minimum stated therein by the
removal of all trees, brush, stumps and other encumbrances level with the
surface of the ground. The CONTRACTOR shall also remove stumps in
the way of the trench and dispose of all stumps and debris during the
clearing operation. Holes remaining after stumps have been cleared, shall
be filled with suitable material and compacted. CONTRACTOR shall clean
the right-of-way a sufficient distance from the trench line so that the spoil
bank from the trenching operations shall not fall on any foreign material
that might become mixed with the excavated soil. Clearing operations
done with bulldozers shall be confined to the right-of-way and shall comply
with all environmental permit conditions related to the crossings. Trees,
stumps and brush, shall not be pushed off the right-of-way.

5.2.6 All timber, and all tree tops, brush and stumps shall be hauled away and
disposed of outside right-of-way limits during the clearing operation by
CONTRACTOR at a place and in a manner satisfactory to the COMPANY.
In no case shall the CONTRACTOR allow hauling and disposal of debris
to remain for the clean-up operation. The CONTRACTOR shall offer
timber removed from the land during right-of-way clearing free of charge to
the landowner. It shall be the responsibility of the CONTRACTOR to
secure all necessary permits for disposal of debris.

5.2.7 The CONTRACTOR shall provide and maintain suitable temporary walks,
passageways, fences, or other structures so as not to obstruct or interfere
with traffic in public streets, highways, or private rights-of-way, to the
satisfaction of the COMPANY. The CONTRACTOR shall maintain from
the beginning of twilight through the whole of each night, on or near the
construction SITE, sufficient and proper light, to protect from injury all
persons, horse drawn or automotive vehicles, or livestock. At all times
CONTRACTOR shall have sufficient acceptable equipment/material in
place to prevent any animate or inanimate object from entering the right-
of-way/open pipe ditch. Whenever WORK is suspended, the
CONTRACTOR shall keep all roadways and walks in proper condition,
and put and leave in the same proper condition at the termination of the
WORK.
 Specification No. H-1096.02-CS-001
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5.2.8 The CONTRACTOR shall provide and maintain suitable temporary

passageway in brooks, streams or rivers, so as not to interfere with travel
on or through, or irrigation from these waterways.

5.2.9 The CONTRACTOR shall carefully comply with all special provisions of
the right-of-way easements and environmental permits, including, for
example, the preservation of all trees, shrubs, hedges, lawns and the
preservation of fish and game, pollution control or other ecological
considerations specified in such agreement as not to be disturbed, and
pay for all damage resulting from failure to afford such protection.

5.2.10 The CONTRACTOR shall provide and maintain erosion and sedimentation
control structures as required by applicable regulations and/or the Erosion
and Sedimentation Control Plan. This may include, but not necessarily be
limited to, the installation of temporary bridges for stream crossings,
erection of silt containment structures, and construction of water diversions
to minimize the impact of earth moving activities.

5.3 GRADING THE RIGHT-OF-WAY

5.3.1 Irregularities in the topography along the right-of-way shall be graded

preceding the trenching operation. Right-of-way grading and other
operations shall be performed in a manner that will preserve topsoil
through all cultivated or improved fields and pastures for replacement in its
original position. Top soil shall at all times be segregated and stored
separately from other material.

5.3.2 The grading operation includes proper grading of the terrain so as to allow
safe passage of loaded trucks and equipment without undue wear and tear
thereon, as well as to permit the trench to be graded properly for the
placement of field made pipe bends. Grading shall be performed in a
manner acceptable to the COMPANY. Blasting shall be as specified in
paragraph 5.2.4 herein. Pipe shall not be laid in fill areas created as a
result of right-of-way grading.

5.3.3 Grading shall be performed in compliance with all applicable

environmental permits. In general, grading shall be minimized in
environmentally sensitive areas such as along stream banks adjacent to
the right-of-way in order to preserve protective vegetation such as grass
and shrubs that reduce the potential for erosion in these areas. The
CONTRACTOR shall be responsible for constructing diversion levees to
control surface runoff.
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5.4 FENCES, TELEPHONE AND UTILITY SERVICES (ABOVE AND

UNDERGROUND)

5.4.1 Wherever it is necessary to cut fences for access to the right-of-way, the
CONTRACTOR shall furnish the necessary materials and labor for the
construction of suitable temporary gates and fencing. These temporary
fences are to be securely braced adjacent to the proposed cut before the
cut is made so that no additional sagging will occur in existing fences. The
temporary fences will be constructed so that livestock shall be prevented
from entering or leaving the property and shall comply with any specific
requirements in the right-of-way easement.

5.4.2 When necessary, or required by the COMPANY, CONTRACTOR shall

furnish watchmen to maintain these gates or gaps.

5.4.3 Gaps in hedges shall be permanently closed with a suitable fence to the
satisfaction of the COMPANY, at no cost to the COMPANY for labor or
materials.

5.4.4 When telephone or utility lines interfere with the safe ingress
and egress of CONTRACTOR’s tools and equipment in the
construction of the PIPELINE, the CONTRACTOR shall
make all arrangements necessary to preserve the continuous
use of the telephone or utility lines during the construction of
the PIPELINE and shall pay all the costs of maintaining and
relocating their services.

5.4.5 The CONTRACTOR is responsible to evaluate which

services (buried or above ground) encroach upon the
PIPELINE route. The CONTRACTOR shall be responsible
for notifying owners of these facilities in advance of any right-
of-way clearing or construction WORK which could affect or
disrupt these services. The CONTRACTOR will be
responsible for working with these service owners to
establish agreed on construction methods which should
protect such services through all WORK related activities
until final reinstatement is complete. The CONTRACTOR
shall notify the COMPANY of these agreed on construction
methods. Regardless of the service owner’s cooperation
and agreements, full responsibility shall remain with the
CONTRACTOR for all WORK related damages to or
disruptions of these services caused by, either directly or
indirectly, the CONTRACTOR.
 Specification No. H-1096.02-CS-001
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Feb.-99

5.5 CROSSING OF RICE FIELDS

5.5.1 Prior to the commencement of construction through rice fields the

CONTRACTOR shall submit for COMPANY approval a comprehensive
Method Statement detailing how the isolation of the right-of-way will be
carried out to ensure minimum crop losses, the control of surface water,
control of water in the excavated trench, and the proposed reinstatement
of the right-of-way. Construction operations shall not commence until the
method statement has been approved by the COMPANY.

5.5.2 Part of the PIPELINE route crosses a number of large rice

fields. Due to the importance placed on this crop, the
CONTRACTOR shall exercise all reasonable diligence to
ensure that only those areas required for construction are
isolated for the execution of the WORK, and, once these
areas are isolated, that construction proceeds without any
undue delay to ensure crop losses and the period of land
occupancy is kept to the absolute minimum.

5.5.3 The majority of rice fields are artificially irrigated by the use
of large diameter lift pumps from a network of irrigation
channels and ditches. The CONTRACTOR shall not disturb
any levee, berm, dike, dam or other such water control
facility, nor cut, fill, divert any watercourse without prior
approval of the COMPANY. Under no circumstances shall
the flow in the main irrigation channels to adjacent crop fields
be interrupted or blocked.

5.5.4 The CONTRACTOR shall execute a full right-of-way topsoil

strip and ensure that a physical segregation of topsoil and
subsoil is provided, and maintained throughout the
construction period. Topsoil shall be stored within the width
of the right-of-way. Any and all loss for whatever reason,
shall be the responsibility of the CONTRACTOR.

5.5.5 The passage of construction traffic across irrigation channels

and ditches shall be by means of bridging or fluming. In the
case of the latter, it shall be the CONTRACTOR’s sole
responsibility to ensure sufficient flume pipes are installed to
maintain the regular flow of water. The fording of channels
and ditches will not be permitted.
 Specification No. H-1096.02-CS-001
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5.5.6 The programming of construction activities will be critical to

successful completion through these crop fields and it is
expected that the CONTRACTOR will, where possible,
coordinate the timing of these activities to coincide with the
period between harvesting and re-planting.

5.5.7 Where the Landowner/occupier wishes to flood rice fields on

the PIPELINE route during the CONTRACTOR’s occupation
of the right-of-way for performance of the WORK, then the
CONTRACTOR shall isolate the right-of-way by constructing
levees or berms along each side of the right-of-way. The
CONTRACTOR shall ensure the supply of sufficient capacity
of pumping power to transfer water and maintain the flow of
irrigation water to adjacent fields. The CONTRACTOR shall
be responsible for sourcing the material to be used to
construct such levees and berms, and for the subsequent
removal from site of this material on completion of the works.
All such levees or berms shall be contained within the right-
of way.

5.5.8 Whenever it is deemed necessary to cut through existing

levees, it is the responsibility of the CONTRACTOR to
construct and maintain any temporary dikes or levees, and
for any subsequent failure of these temporary facilities.

5.6 GENERAL

5.7.1 While doing right-of-way WORK the CONTRACTOR shall make ever effort
to locate, mark, record and report to the COMPANY any foreign pipeline,
utility, or any other items that would be considered during the design or
construction of the PIPELINE and its facilities.

5.7.2 The CONTRACTOR shall provide a photographic record showing all

boundary crossings, river crossings, creek crossings, road crossings and
rail crossings and/or any other sensitive areas before commencement of
the WORK. A similar photographic record shall be taken after completion
of reinstatement and submitted to the COMPANY.

5.7.3 The CONTRACTOR shall be responsible for scheduling the work so that
disruption of irrigation will not occur. Off right-of-way crop damage due to
disruption of irrigation resulting from PIPELINE construction activities shall
be the CONTRACTOR’s responsibility.
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5.7.4 In areas of high ground water, CONTRACTOR shall

construct earthen work pads or other suitable means to
support construction equipment. All fill materials used shall
be provided by the CONTRACTOR.

6 Access and Traffic Planning

6.1 Gasoducto Cruz del Sur has developed a preliminary Traffic Plan that shall
be issued to the contractors. Once the CONTRACTOR has determined
his logistic plan for material supply (i.e.: locations of local pipe storage, site
offices, sources of bulk imported materials, etc.), CONTRACTOR will be
required to submit a revised Traffic Plan to the local authorities
incorporating movement of materials from supply locations to the site.

6.2 The CONTRACTOR is expected to utilize existing roadways (paved roads,

dirt roads, permitted use of private roads, etc.) for direct access to the
Working Width and Working Areas at authorized entry/exit points to the
right-of-way. Construction of temporary access roads other than those
authorized roads specified above shall not be permitted except under
unusual circumstances and then, only with the approval of Gasoducto
Cruz del Sur and the relevant local municipalities.

6.2.1 In the unusual case where the distance between any two existing access
routes (paved roads, dirt roads, permitted use of private roads, etc.) to the
right-of-way would be judged by the CONTRACTOR to be excessive, i.e.:
requiring extremely long distances of travel along the right-of-way (from
either direction of the two available accesses) to the WORK SITE areas,
the CONTRACTOR would be required to identify these areas within the
revised Traffic Plan.

6.2.2 Within the CONTRACTOR revised Traffic Plan, the CONTRACTOR is

required to provide full justification for these areas where a temporary
access road, between the available access roads and the PIPELINE right-
of-way, would be necessary.

6.2.3 The CONTRACTOR shall also identify within the revised Traffic Plan the
method of construction to be utilized for the temporary access road. The
defined method of road construction shall be based on a CONTRACTOR
Engineering study of the geography and topography of the land to be
crossed by the temporary road, and the size, weight and type of
CONTRACTOR equipment to use the temporary road.
 Specification No. H-1096.02-CS-001
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6.2.4 When temporary roads are required and approved, they shall be
constructed so that environmental impacts of the CONTRACTOR’s
construction, usage and reinstatement of the temporary road will be
minimal, i.e.: sprayed oil on dirt shall not be allowed, water run-off from the
temporary road should not cause a contamination of adjoining land areas,
roadway compaction such that ruts or furrows are not created due to the
weight of the CONTRACTOR equipment using the road. Reinstatement
shall return the land utilized for the temporary road to its original condition
to the same degree as required for the reinstatement of the right-of-way
and to the COMPANY’s and landowners satisfaction.

6.3 In conjunction with the Traffic Plan and local authorities, the
CONTRACTOR is responsible for assessing the suitability of roads for the
types and weight of heavy equipment that must be transported to the site.
In some instances, rehabilitation or strengthening by the CONTRACTOR
of critical roads, bridges, or overpasses may be required to safely
transport the heaviest equipment.

6.4 The Traffic Plan generally covers the following topics:

A. Traffic Classification:

All vehicles used for the project will be classified according to

weight and cargo type, and the access of various classifications
may be limited based on the carrying capacity of certain roads.

B. Road Condition:

Prior to the start of construction, local municipalities may conduct

road assessment surveys. These surveys will be provided to the
CONTRACTOR and form a baseline against which any damage to
the roads from construction activities will be compared. The
CONTRACTOR is required to repair any damage to the satisfaction
of the local municipalities. During construction, the CONTRACTOR
will keep all roads free of dirt and debris using methods acceptable
to the local municipalities.

C. Traffic Flow:

This section of the traffic plan details all approved roads and entry/
exit points to the PIPELINE right-of-way.

D. Road Signs and Crossing Control:

 Specification No. H-1096.02-CS-001
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The CONTRACTOR will use a system of temporary road signs that

is acceptable to the relevant statutory or municipal authorities.