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October 31, 2003, without any problems, and this section of the pipeline passed the test <br />on the first try. <br />The second phase of the test was performed November 8, 2003, after completing <br />the rest of the HDPE pipeline, from the first cleanout to the PT. In this phase of the test, <br />the upper section of the pipeline was also tested again (although at a slightly lower <br />pressure), as the entire pipeline was filled with water and pressurized. Once again, no <br />problems with the pipeline were found and this test was also passed on the first try. <br />During both test phases, as much of the pipeline that was visible was inspected: . <br />for leaks during the "hold" phase and none were found. Some small leaks were found at <br />a few of the flanges during the initial pressurization phase, but these leaks were sealed <br />by re-torquing the flange bolts. During the final test phase, no further leaks were found. <br />In addition, even though a 5% drop in pressure would have been acceptable, virtually no <br />pressure loss at all was measured. These facts confirm that a watertight pipeline has <br />been produced. <br />After the hydrostatic testing was successfully concluded, a letter was written to <br />Mr. Bryce Romig with the Climax Molybdenum Co. confirming that the Storke pipeline <br />was ready for service. For additional information about the hydrostatic testing, refer to <br />the information attached in the Appendix. <br />11 <br />