Okla. Admin. Code § 385:15-1-23 - Measurement standards for oil and gas removal
Measurement standards for oil and gas removal shall be as follows:
(1)
Oil tanks and tank
batteries.
(A) Oil shall be gauged in
tanks located on the leased premises.
(B) Tanks shall be properly set, free from
leakage, sufficiently gas tight, and maintained to preserve the full gravity of
the oil, and to prevent evaporation losses.
(C) The lessee shall be accountable for all
oil lost by leakage, overflowing, or for other reasonably preventable reasons.
(D) Oil produced from more than
one lease may be stored in a common tank battery only with written approval of
a common tank battery agreement by the Land Office.
(E) Lessee requests for approval of a common
tank battery shall be accompanied by proof of settlement for surface damages
with the Land Office's surface lessee, if applicable, and payment of a common
tank battery approval fee to be set by resolution of the Board.
(2)
Oil tank
requirements.
(A) All tanks shall be
strapped to a full 100 percent of their capacity and individual tank tables
shall be prepared and submitted.
(B) Tank strapping shall be measured and
calibrated using American Petroleum Institute Standards for measuring,
sampling, and testing crude oil.
(C) The lessee shall supply the Land Office
with a certified copy of the original strapping showing the tank number, make,
and size.
(D) Any tank moved
bodily, taken down and reset, or altered in any way that might change the
capacity thereof; shall be treated as a new tank and lessee shall assign a new
number.
(E) When lessee prepares
new tank tables or assigns new numbers are to old tanks, reference to prior
tank tables or tank numbers shall be provided to the Land Office.
(3)
Oil measurement.
(A) Oil shall be measured by gauge pole or
measuring line marked and numbered in full standard feet, inches, and fractions
thereof and in a clearly legible manner. Numbering for measurements shall start
from the base of said line or pole.
(B) Measurements of oil depth shall be taken
consistently from the same gauge or thief hole in the tank deck. The floor of
the tank directly under the point of measurement shall be level and free from
obstructions.
(C) Oil shall be
measured from the tank floor to the top surface of the liquid level.
(D) Oil measurement readings shall be
recorded to the nearest one-quarter inch.
(E) Oil shall not be measured by automatic
custody transfer without prior approval of the Commission in writing.
(F) Bottoms and solids removed
from tanks shall be measured by first measuring from the tank floor to the top
surface of the liquid level immediately prior to removal and immediately after
removal. Both measurements shall be supplied to the Land Office, upon request,
with a copy of disposal invoices. Bottoms and solids removed without sufficient
evidence of disposal shall be considered marketable production and lessee shall
pay a royalty on such volumes as if sold under the terms of the lease.
(4)
Oil
temperature. Oil temperature shall be taken at the same time oil is
measured. The temperature shall be representative of the average temperature of
the entire body of oil from the tank bottom to the top of the liquid surface.
The temperature in tanks with a capacity less than 500 barrels shall be taken
by suspending a standard thermometer for at least five minutes, at a point not
less than twelve inches from the side of the tank, and midway between the tank
bottom and the top surface of the oil.
(5)
Oil sample. The observed
A.P.I. gravity and hydrometer temperature shall be taken in a sample
representative of the merchantable body of the oil and shall be taken and
recorded at the time of measurement. Samples shall be tested for gravity from a
sealed sample and not by an unsealed (open vapor) hydrometer.
(6)
Instruments of measurement.
All instruments used in determining temperature, A.P.I. gravity, water, and
sediment shall be of a standard make, of reputable manufacture, accurately
calibrated, and in good working order.
(7)
Oil gravity and volume. The
observed gravity and the observed volume of oil shall be corrected to the
standard of 60 degrees Fahrenheit consistent with National Standard of
Petroleum Tables.
(8)
Run
tickets. Run tickets shall be legible, properly executed at the time
measurements are taken, and shall contain all information necessary to complete
final calculations. Lessee shall furnish the original run tickets or a carbon
copy to the Land Office, upon request.
(9)
Gas metering. Gas of all
kinds shall be subject to royalty and shall be measured by a meter approved for
general use by the oil and gas industry. All measurements shall be adjusted to
conform to the Standard Gas Measurement Act.
(10)
Gas measurement. Tests to
determine the approximate natural gas liquid and non-hydrocarbon gas content of
gas delivered to plants processing natural gas liquids and non-hydrocarbon gas
shall be provided by the lessee at the request of the Land Office to check
plant efficiency and to obtain an equitable basis for allocating the natural
gas liquid and non-hydrocarbon gas output of any processing plant.
Notes
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