Open-RBI

Financial Consequence — Level 1 & Level 2 Training Calculator

Training tool for financial COF: component damage, surrounding equipment, business interruption, injury, and environmental cleanup. Implements the Part 3 §4.12 calculation flow for Level 1 and the same financial equations for Level 2 (which uses Level 2 consequence areas). Includes screening data tables and training notes on every input and formula. Always verify numeric tables against your licensed API RP 581 copy.

FCtotal = FCcmd + FCaffa + FCprod + FCinj + FCenviron Tables 4.15 · 4.16 · 4.17 Level 1 & Level 2 Training notes on every field
Level 1 Financial math is the same; Level 2 uses L2 CAcmd / CAinj and detection/isolation context.

1 · Component damage cost

§4.12.2 · Eq. (3.83)

Edit holecost / Outage / GFF below. Prefer plant-specific repair costs when available. Click any ℹ for training notes.

Hole size holecost ($) Outage (days) GFF (/yr)

2 · Surrounding equipment & business interruption

§4.12.3–4.12.4

Level 2 context — detection & isolation

Detection/isolation primarily affect consequence area upstream. This calculator does not invent area reductions — enter the final Level 2 CA values from your area workbook.

3 · Injury & environmental

§4.12.5–4.12.6

Spill volume pathway

Table 4.15 — Example component damage costs (holecost)

2001 USD screening basis · verify vs licensed standard

Training notes — Table 4.15

Purpose: Provides example repair/replacement costs for each release hole size (small, medium, large, rupture) by equipment/component type.

Why hole-size specific? A small leak may be clamped online; rupture usually forces shutdown and full replacement. Costs therefore differ dramatically by hole size.

How used: Entered into Eq. (3.83) as holecostn, probability-weighted by GFFn, then multiplied by matcost and costfactor.

Training warning: These are example costs (carbon-steel, ~2001). Do not treat as bid estimates. Update with owner cost data and inflate with costfactor.

N/A: Some component types do not use all four hole sizes (see Annex guidance). Leave blank / exclude from weighting.

Table 4.16 — Material cost factors (matcost)

relative to carbon steel = 1.0

Training notes — Table 4.16

Purpose: Scales Table 4.15 carbon-steel repair costs for other materials of construction.

How used: FCcmd ∝ matcost. Example: 316 SS (4.8) makes component damage ~4.8× the CS example cost before costfactor.

Training tip: Clad / lined materials often sit between substrate and cladding alloy costs — use the table value, then sense-check with site purchasing history.

Table 4.17 — Estimated equipment outage (Outagen, days)

minimum repair downtime estimates

Training notes — Table 4.17

Purpose: Estimated days of downtime to repair the failed component for each hole size. Used to form Outagecmd (GFF-weighted), then business-interruption cost.

Note 1: Values are estimates — owners should replace with realistic turnaround durations (spares, crafts, permitting, isolation).

Note 2: N/A means that hole size is not used for that component type.

Pumps: Often assumed to have online spares → Outage ≈ 0 in the example table for many pump hole sizes.

Outagemult: Multiply when actual downtime is systematically longer than the table (mobilisation, remote site, etc.).

Default GFF reminders (Part 2 Table 3.1 — vessel example)

training reminder · use library GFF for the asset

Financial component-damage and outage weighting use the same generic failure frequencies as PoF screening. Example vessel row often cited in worked examples:

gff₁=8×10⁻⁶, gff₂=2×10⁻⁵, gff₃=2×10⁻⁶, gff₄=6×10⁻⁷, gfftotal=3.06×10⁻⁵ /yr.

Always pull the GFF row that matches the component type from your GFF library — do not invent frequencies.

What financial COF is trying to capture

§4.12.1 overview

A loss of containment has costs even when the release does not injure people or damage neighbouring equipment. The methodology therefore adds five money terms:

  1. FCcmd — repair/replace the component that failed.
  2. FCaffa — repair/replace surrounding equipment in the fire/explosion damage area.
  3. FCprod — lost production / business interruption during outage.
  4. FCinj — potential injury costs in the personnel injury area.
  5. FCenviron — cleanup / environmental costs for liquid spills that remain.

Training mantra: Risk ($) ≈ POF × FCtotal. Evaluating FC at each hole size (via GFF weighting) keeps small leaks from being treated the same as ruptures.

Formula sheet (training)

write these on the whiteboard
FC_cmd = ( Σ gff_n · holecost_n / Σ gff_n ) · matcost · costfactor FC_affa = CA_cmd · equipcost Outage_cmd = ( Σ gff_n · Outage_n / Σ gff_n ) · Outage_mult Outage_affa = 10 ^ ( 1.242 + 0.585 · log10( FC_affa · 10^-6 ) ) (for FC_affa > 0; else 0) FC_prod = ( Outage_cmd + Outage_affa ) · prodcost FC_inj = CA_inj · popdens · injcost vol_n = C13 · mass_n · (1 − frac_evap) / ρ_l FC_environ = ( Σ gff_n · vol_n / Σ gff_n ) · envcost FC_total = FC_cmd + FC_affa + FC_prod + FC_inj + FC_environ

Worked intuition — Outageaffa

Surrounding-equipment downtime is not taken from Table 4.17. It is estimated from the dollar magnitude of surrounding damage using a log relationship (Dow F&EI-inspired). Larger FCaffa ⇒ longer outage ⇒ larger business interruption.

Quick check: FCaffa ≈ $6.7M → Outageaffa ≈ 53 days in classic worked examples.

When to include environmental cost

§4.12.6 training gates
  • Release is a liquid (or can pool as liquid).
  • Normal boiling point typically ≥ 93 °C (200 °F) so evaporation does not wipe out the spill (otherwise environmental cost often negligible).
  • Release is not expected to autoignite and burn away.
  • envcost ($/bbl) must reflect where the spill goes (ground vs waterway vs subsurface) — analyst estimate.
  • frac_evap from Table 4.18 / NBP correlation; only the non-evaporated fraction needs cleanup.

How this training tool should be used in class

suggested lesson flow
  1. Open Data tables — walk Table 4.15 hole costs and ask why rupture ≫ small.
  2. Open Calculator · Level 1 — load vessel sample; change matcost from CS to 316 SS and watch FCcmd jump.
  3. Increase CAcmd — show FCaffa and Outageaffa both rise, then FCprod.
  4. Switch to Level 2 — discuss that financial equations do not change; the CA inputs do (and detection/isolation belong in the area model).
  5. Open L1 vs L2 tab — reinforce the boundary between area modelling and money modelling.

Level 1 financial COF

Part 3 §4.12

What you bring in

  • Level 1 final consequence areas CAcmd, CAinj (from Level 1 area steps).
  • Table 4.15 / 4.16 / 4.17 defaults or site costs.
  • Unit economic factors: equipcost, prodcost, popdens, injcost, envcost.
  • GFF row for the component.

What you calculate

All five FC terms and FCtotal using §4.12.7 Steps 12.1–12.6.

Training use

Best for teaching the money model quickly with simplified areas.

Level 2 financial COF

Part 3 §5.12

What changes vs Level 1

  • §5.12.1: financial consequence is determined in accordance with Level 1 §4.12.7 — same FC equations.
  • Use Level 2 final areas: CAf,cmd (Step 11.1) and CAf,inj (Step 11.2 / Eq. references in Part 3 Level 2).
  • Detection & isolation systems influence release duration and therefore areas upstream of the financial sum (§5.12.2 points back to the detect/isolate methodology).
  • Safety consequence (SC) for Level 2 uses Level 2 CAinj (§5.13) — separate from financial FCinj but related conceptually.

Training pitfall

Do not “double discount” for detection/isolation inside the financial calculator if your pasted CA already includes those effects.

Boundary diagram (training)

keep area model and money model separate
[ Fluid + hole size + inventory + detect/isolate + dispersion ] → Level 1 or Level 2 consequence AREAS (CA_cmd, CA_inj) → Financial calculator (§4.12 / §5.12) → FC_total ($) → Risk ($) = POF × FC_total

Open-RBI training tool. Screening table values are reconstructed for instruction from the Economic Analysis Study Reference extract and must be verified against the licensed API RP 581 document before any plant decision. This page does not reproduce copyrighted standard narrative text.