Equipment and pipe and fittings typically are rated for maximum pressure.
If I use a pipe fitting or chiller that is only rated for 150 psig, I have to make sure that during no flow (static) and flow (dynamic) conditions - that fitting or chiller is not experiencing pressure exceeding its rating.
The article was talking about where to put the chiller.
From the article, "The decision about the level on which the refrigeration machines and the supporting chilled water and condenser water pumps are located in a building is a decision that can have a cost impact on the refrigeration equipment, the pumps, the piping, and the fittings and valves associated with the piping. The economic impact will be due to the change in the design working pressure to which the equipment, piping, fittings, and valves will be subjected by the system.... The working pressure on any equipment or the piping, valves, and fittings at any location in a building is the sum of the hydrostatic height of the water in the piping above the point being considered plus the dynamic pressure created by the pump at the point being analyzed. The hydrostatic and dynamic pressures are determined in feet of water. Their sum, when added together, is the total pressure or working pressure in feet at the referenced point. To determine the working pressure in PSIG, this total pressure in feet must be divided by 2.31. This is the conversion factor to convert pressure in feet of water to pressure in PSIG."
Using the example, the maximum pressure the chiller would see, if on the bottom floor, is approximately 900 ft (due to elevation) + 140 ft (due to pump shut off pressure, which is basically the TDH provided by the pump during operation and the shut off pressure of the pump) for a total static pressure of 1040 ft (450 psi) per Solution A. This would exceed the rated pressure of the described fitting/chiller.
If the chiller is on the top floor (Solution C), then the total pressure the chiller would see would be 65 psi. This would be within the pressure rating of the fitting/chiller. The pump is still contributing 140 ft to the pressure, but because of the difference in elevation, the static effect is much less.
In this case you would specify fittings/pipe with higher pressure ratings on the lower floors and decreasing ratings as you went up. You would locate the chiller at a level where the pressure does not exceed its maximum pressure.
I hope that helps.