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    Custody Transfer John Sweeney

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    metasla
    This document discusses ConocoPhillips' processes for determining quantity and quality (Q&Q) during custody transfer of oil and gas. It outlines the roles of independent inspectors, loss control, and measurement standards in verifying accurate Q&Q determination when ownership changes hands. The presentation addresses key factors like meter proving and vessel experience factors that influence Q&Q methodologies per API and ASTM standards.

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    Custody Transfer John Sweeney

    Uploaded by

    metasla
    387 views22 pages
    This document discusses ConocoPhillips' processes for determining quantity and quality (Q&Q) during custody transfer of oil and gas. It outlines the roles of independent inspectors, loss control, and measurement standards in verifying accurate Q&Q determination when ownership changes hands. The presentation addresses key factors like meter proving and vessel experience factors that influence Q&Q methodologies per API and ASTM standards.

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    This document discusses ConocoPhillips' processes for determining quantity and quality (Q&Q) during custody transfer of oil and gas. It outlines the roles of independent inspectors, loss control, and measurement standards in verifying accurate Q&Q determination when ownership changes hands. The presentation addresses key factors like meter proving and vessel experience factors that influence Q&Q methodologies per API and ASTM standards.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    387 views22 pages

    Custody Transfer John Sweeney

    Uploaded by

    metasla
    This document discusses ConocoPhillips' processes for determining quantity and quality (Q&Q) during custody transfer of oil and gas. It outlines the roles of independent inspectors, loss control, and measurement standards in verifying accurate Q&Q determination when ownership changes hands. The presentation addresses key factors like meter proving and vessel experience factors that influence Q&Q methodologies per API and ASTM standards.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    The key takeaways are that custody transfer involves determining the quantity and quality of commodities during a change in ownership or responsibility. It aims to manage risks through adherence to industry measurement standards.

    The risks associated with custody transfer operations include security, health, safety, environmental, financial, and regulatory risks.

    The role of an independent inspection company is to independently determine quantity and quality, ensure measurement standards are followed, prepare documentation, assist in resolving discrepancies, and act as an expert witness.

    ConocoPhillips Company Americas Supply & Trading Q & Q Determination and Loss Control

    2011 A.P.I. International Trade and Customs Conference Houston, Texas


    March 28, 2011

    Agenda

    Welcome & Introduction Definition of Custody Transfer & Inherent Risk(s) Commercial & Operations Overview The Role of the Independent Inspector Loss Control & its Role Some Custody Transfer Scenarios Q&Q Determination Methodologies Overview of Industry Measurement Standards Q&A
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    Definition of Custody Transfer


    Custody transfer measurement: Provides quantity and quality (Q&Q) information used for the physical and fiscal documentation of a change in ownership and/or a change in responsibility for commodities. (API MPMS Chapter 1 Vocabulary)

    Q&Q Determination Change in Ownership and/or Accountability


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    Risks Associated with Custody Transfer Operations


    Security Health Safety Environmental Financial Regulatory (US Customs & BP, EPA)

    Commercial & Operational Processes


    Commercial (Contracts & Optimization) Traders, Schedulers, Chartering, Contract Admin. Operations Upstream, Refining, PLs, Terminals, Marine & Vessel Q&Q Determination ~ Measurement & Sampling Independent Inspectors (IICs), Terminals, LC Financial Systems & Reporting Upstream, Commercial and Refining, Invoicing/Settlements, Audit & Regulatory Compliance
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    Role of Independent Inspection Company (IIC) Inspector (aka Approved Commercial Gauger)
    CFR 19 151.13(c) approved gaugers must comply with appropriate procedures published by such organizations as the ASTM and the American Petroleum Institute (API),
    Quantity as determined by the IIC shall be final and binding on all parties and will be the basis for preparing relevant shipping documents and invoices save fraud and/or manifest error.COP Q&Q Determination Guidelines

    Independent Q&Q Determination Early Warning System for Terminal and Vessel Cargo Transfer Problems & Measurement Anomalies Facts/Expert Witness in Claims Resolution

    IIC Inspector Role in Custody Transfer Processes


    Witness and/or Independent Marine Cargo Surveyor Measurements and Samples (Q&Q Determination)

    Quality Assurance
    Validation~API/ASTM/ISO Standards are followed Static (Manual Tank Gauges) Dynamic (Meter Proving, K factors) Prepares Documentation (Meter & Sampler Performance, Vessel Ullage, Quality Reports, Letters of Apparent Discrepancies/Protest etc.) Assists in Resolution of Discrepancies
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    What is Loss Control ?


    Loss Control is a risk management process that minimizes & prevents Quantity & Quality (Q&Q) losses. Loss Control begins with the commercial contract Terms & Conditions.
    Loss Control processes validate performance of operations and IICs (measurement, sampling & lab). Performance and Compliance (Financial & Regulatory) rely upon adherence to accepted custody transfer measurement standards.
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    Loss Controls Role in Custody Transfer Processes


    Witness Custody Transfer Measurements and Cargo Transfer Operations Validate that Measurement Accuracy & Quality Specifications/Assurance is Achieved (API/ASTM/ISO Standards are followed) Reinforce Independence of IIC Inspector Minimize/manage excess water, other contaminants

    Vessel Ops. (Cleanliness, COWing & stripping)


    Support Contract(s)~Claims and Claims Settlement
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    Quantity Determination Methodologies


    A.) Preferred

    Measurements for Custody Transfer at a Terminal

    Primary; Meters or Static Shore Tank(s) Gauges Secondary; Vessel (Receiving or Delivering) Measurements with Valid VEF Applied NB: Truck & Rail Car ~ rack meters, certified truck/rail car calibration tables, certified weigh scales
    B.) Preferred

    Measurements for Custody Transfer Offshore (Ship to Ship

    Transfers or STS)
    Primary; Lighter Vessel (Receiving or Delivering) Measurements with Valid VEF Applied
    C.) Default

    Measurements for Custody Transfer at a Terminal or

    Offshore

    Good Faith Agreement between the parties.


    16

    Quantity Determination Methodologies - Key Factors

    I. Key Measurement Factors


    No non-perforated standpipe/stilling wells Shore Line Fullness Verification (SLFV))

    Floating Shore Tank(s) Roofs to be Afloat (Critical Zone)


    Shore Tank Strapping (Calibration) Tables & Marine Cargo Capacity Tables

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    Quality Determination Methodologies I. A.) Preferred Sampling for Custody Transfer at a Terminal
    Primary; Flow Proportional in-line Sampler Secondary; Vessel (post-Receiving or pre-Delivering)

    Volumetric Composite or Shore Tanks (post-Receiving or


    pre-Delivering) Composite NB: Refined Products Certificate of Quality (COQ)

    B.) Default Sampling for Custody Transfer at a


    Terminal or Offshore
    Good Faith Agreement between the parties.
    18

    Role of Measurement Standards


    Industry Standards Development Organizations (SDO) ISO/ASTM/API/EI Industry standards are voluntary. As non-governmental organizations, SDOs have no legal authority to enforce their implementation. Some standards (i.e. those concerned with health, safety, trade or the environment ) have been adopted in some countries as part of their regulatory framework. Some standards are referred to in legislation for which they provide a technical basis for reporting & compliance. Industry standards have become a commercial requirement because they serve as a technical means to determine measurement accuracy and procedural best practices for all participants.
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    Measurement & Laboratory Test(s) Standards


    American Petroleum Institute (API) Primary source for many companies petroleum measurement standards API measurement standards are organized as documents within a manual called the Manual of Petroleum Measurement Standards (MPMS) ASTM International Primary source for many companies petroleum laboratory test methods Former name was American Society for Testing Materials International Standards Organization (ISO) Choice of some companies/countries for measurement standards Includes measurement and laboratory test methods ISOs scope is very broad and covers standards outside the petroleum industry (food, building, manufacturing, safety etc.)

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    Goal: Globally Accepted Standards~API and ISO


    ISO has developed a limited number of new measurement standards in recent years. Most ISO petroleum measurement standards are based on API standards, some of which are joint standards with ASTM International & Energy Institute. Not all API standards are processed through ISO only where there is a need of the international oil and natural gas industries. API & ISO standards are reviewed at intervals of not more than 5 years.
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    Current API COPM Measurement Standard(s) Initiatives


    The API COPM develops, approves, and maintains hydrocarbon measurement standards involving all modes of transportation. Examples of Current Standards Development Manual Gauging & Level Measurement by ATG of Petrol./Petrol. Products (COLM Ch 3.1A & CH 3.1B respectively). Temperature Determination (COMQ Ch 7) Manual & Automatic Sampling of Petrol./Petrol. Products (COMQ Ch 8) Cargo Analysis and Reconciliation of Cargo Quantities (COMA Ch.17.5) Determining Fullness of PLs between Vessels and Shore Tanks (COMA Ch.17.6) Vessel Experience Factors (COMA Ch. 17.9) Measurement of LPGs/Chemical Gases & LNG on Board Marine Gas Carriers (COMA Ch. 17.10.1~ISO 10976) Evaporative Loss from Fixed Roof Tanks (CELE Ch. 19.1) Allocation Measurement Single & Multiphase Measurement (CPMA Ch. 20) Measurement & Sampling On Board Tank Vessels Using Closed/Restricted Equipment (COMA Ch17.11)
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