Mandatory Appendix XXVI of Section III of the ASME B&PV Code contains rules for the construction of Class 3 polyethylene pressure piping systems. The scope is limited to buried portions of Class 3 service water or buried portions of Class 3 cooling water systems, consisting of PE4710 High Density Polyethylene (HDPE) materials. The minimum Pennsylvania Notched Test (PENT) rating for the HDPE material is 2,000 hours. Appendix XXVI contains acceptance standards for the maximum allowable depths of gouges, cuts or other surface conditions that are characterized as indentations. The acceptance standards are considered to be very restrictive, in particular for large diameter HDPE pipes. Less restrictive maximum allowable indentation depths for pipes with a minimum PENT rating of 2,000 hours were developed based on use of results from tests performed on pressurized HDPE pipes containing flaws in the parent material. These maximum allowable indentation depths were implemented into the new Section III Code Case N-891 on alternative requirements to Appendix XXVI for inspection and repair. The technical basis for the maximum allowable indentation depths is described in this paper.