workshop on hydrocarbon production accounting and flared gas
TRANSCRIPT
Workshop on Hydrocarbon Production Accounting and Flared Gas Volume
Measurement ERCB Measurement, Accounting, Reporting,
and Audit
By Bill Cheung
OutlineOverview of Directive 017Facility Types and Measurement Overview of Directive 060Flare Measurement & Estimating
RequirementsProduction Accounting &
Reporting Auditing Protocols Compliance-Enforcement Field Surveillance
Why measure and report production, flaring, and venting?
Public Safety and EnvironmentUnderstand and monitor emissions
Reservoir EngineeringBetter understand the adverse impacts to reservoirs
ConservationTo do proper economic evaluations to conserve
Information and StatisticsBalance FacilitiesAND Calculate Production and Royalty
Directive 017 OverviewFirst 5 sections implemented in 2005Sections 6 to 9 implemented in 2007Sections 10 & 11 to be implemented soonWhat and how volumes must be measured or calculatedWhat, where, and how volumes may be estimatedAccounting procedures for volume determinationWhat data must be kept for audit purposesWhat resultant volumes must be reported
Using “Dispositions” to Calculate Production
In Alberta, oil and gas production for wells and batteries is often calculated using “Dispositions”Gas production = Gas Sales Meter (1800.0 103m3) + Vented Gas (6.0 103m3) + Lease Fuel (50.0 103m3) + Flared Gas (150.0 103m3)
= 2006.0 103m3
Oil production = Oil Sales + Inventory Change
Production from a Single Well Oil Battery
Crude Oil Multiwell Proration Battery
Oil Well
Oil Well
Oil Well
Oil Well
Treater OilStorage
Water Storage
MOil Sales to
Pipeline
Vented Gas
Flare
Fuel
Compressor
Gas Sales to Pipeline
Disposal
Accounting Meter C
Test Meter A
Test Meter B
Oil Well
M
M
M
M
M
M
M
M
Oil Proration BatteryWell tests according to the following:
Purge and stabilization time before starting test
S&W performed for every test
The total monthly battery dispositions are to be proratedback to the individual well monthly estimated production volume based on test volume and production hours for gas, oil, and water
ClassNo. Name1 High > 30 3 per month 5 12
2 Medium > 6 but ≤ 30 2 per month 10 22
3 Low > 2 but ≤ 6 1 per month 15 22
4 Stripper ≤ 2 1 every quarter 45 22
Oil rate (m3/d)Minimum test
frequencyMinimum time between
tests (days)Minimum test
duration (hours)
Multi-Well Gas Group Battery
Flowing Gas Well
Produced Water
M
M
Flowing Gas Well
M
Flowing Gas Well
To Gas Gathering or
Gas Plant Inlet
Metered and Recombined Condensate
Produced Oil
Produced Water
Compressor
Fuel to Compressor
M
M
Metered and Recombined Condensate
FR
M
Metered and Recombined Condensate
Produced Water
M
M
Multi-Well Gas Proration Battery
Multi-Well Gas Effluent Proration Battery
M
M
Condensate Metered and Recombined
Group Measurement
Point
To Gas Gathering System
Gas Meter A
Produced Water Metered and
Recombined or Disposal
M
SP
SP
M
Test Taps
Effluent Meter
M
Test Taps
Effluent Meter
M
Test Taps
Effluent Meter
Gas Well
Gas Well
Gas Well
Calibration/Proving Frequency
Gas measurement calibration requirements:within the 1st calendar month of operation of a
new meterby the end of the month following service or
repairs to the meter, semi-annually thereafter if the meter is used in
a gas plant or at royalty trigger pointsannually for all other meters
Calibration/Proving Frequency
Gas meters with internal moving parts is to be proved once every 7 years after the initial proveInternal inspection of measurement element is required for those without internal moving parts – same frequency as the calibration but with exceptions such as inside a gas plant or with internal diagnostics
Liquid Meter Proving Frequency
Meter Application Fluid Type Proving Frequency
Wellhead, group, injection
Test oil, test emulsion, live condensate, water
Annually
Gas plant, cross-border
Live condensate, NGL, LPG Semi-annually
Delivery point, LACT Oil, condensate, live condensate, NGL, LPG
Monthly (with some exceptions)
Multi-phase Metering
Suppliers are testing some multi-phase metering packages at various oil facilities within Alberta Generally in series with a production separatorMostly for production volume test of conventional oil, heavy oil, or insitu oil sand wells
Directive 60 OverviewAlberta Requirement for Upstream
Petroleum Industry Flaring – June 1999Incorporated the recommendations by the
Clean Air Strategic Alliance (CASA) made to the EUB
It’s requirements apply to all gas flaring,incinerating, and venting
Clarification updated in February 2001Revised directive implemented on
November 16, 2006
Flaring, Incinerating, and Venting Measurement
Measurement required when:Continuous or intermittent flaring, incinerating, or venting at conventional oil and gas production facilities, including gas plants, over 0.5 103m3/dAcid gas flared, either continuously or in emergency, from gas sweetening systems must be measured Fuel (dilution or purge) gas added to acid gas to meet minimum acid gas heating value or ground sulphur concentration requirements
Estimating Requirements
If it is not listed above as required to measure the flared, incinerated, or vented gas, the ERCB will accept estimates of gas usage, example:
Emergency or maintenance operations outside gas plants
Volumes outside existing meter rangeWell testingDepressurizing of pipelines, compressors, and
other vessels
Estimating RequirementsEstimates must be based on engineeringcalculationsProcedures or software use for estimating must be developed by a technically knowledgeable personConsistency and repeatability for estimationDocumentation and reporting procedure for ERCB reviewERCB may require an operator to installmeasurement devices if the above is deemed to be inadequate
Production ReportingAll production volumes are reported to: Gas Standard Conditions: 101.325 kPa at 15 oC
Liquids Standard Conditions: Atmospheric,
101.325 kPa, or equilibrium pressure and at 15 oC
The receiver of the product is responsible for measuring and reporting the volume and the sourceReporting is on a monthly basis generally from 8:00 am on first day of the production month to 8:00 am of the first day of the next month
Reporting to the Registry
The Alberta Petroleum Registry is:A web based system Developed and operated by a joint interest group composed of the Operators, Alberta Energy (royalty), and the ERCBIt provides a single database access for all interested parties to minimize duplication and improves data integrityBusiness rules set by the ERCB after consultation with the other joint interest partners
Registry Volumetric and Infrastructure Data Elements
WellsUnique IDProduction volumes
Gas, condensate, oil, water
Fuel, flare, and vent volumesProduction hours for each well
FacilitiesProduction (batteries)
Gas, condensate, oil, waterThe total for all wells
Plant Products (gas plants)Gas, C2, C3, C4, C5, NGL, MixesAcid Gas
Receipts & DispositionsFuel, Flare, and Vent Inventories
Registry Reports
Registry Reports
Registry Reports
Registry Reports
Registry Reports
Registry Reports
Reporting Flared, Incinerated,and Vented Gas
All gas flared, incinerated, and vented must be reported at the location where it occurred, including:
Well sitesCompressor SitesBatteries Gathering SystemsGas Injection FacilitiesGas Plants
Incinerated gas is reported as flared
Flare & Vent Reporting Issues
Tracking solution gas flaringAssociated gas produced from oil wells has to be
reported separately from non-associated gas (gas wells)
Gas wells may be tied into Oil Batteries (and vice versa), but they are measured and reported separately
If flaring, incinerating, and venting occurred at anon-reporting facility, such as pipelines, small compressors, pig traps, etc.
Report at the closest and connected reporting entityReport at the gas gathering system (GS) if no other
reporting entity exists within the GSReport only produced gas flare or vent volumes
excluding fuel added for purging or dilution
Audit of Measurement, Accounting, and Reporting
When a well, facility, or plant has been selected for audit by the ERCB, all streams may be audited, such as oil, gas, water, or condensate production, receipts and dispositions, including fuel, flare, and vent volumesThese are normally selected based on a Risk Matrix in which the reported production, receipt, disposition, fuel, flared, and vented volumes are tracked and risked together with other criteriaOther audits maybe initiated from internal or external request
Audit Protocol
Directive 46 – Production Audit Handbookoutlines the production audit protocols:
ERCB auditing process in the areas of production measurement, accounting, and reporting
What data is required to be submitted for an audit, and
Consequence for non-compliance in production measurement and reporting is listed as part of Directive 019: ERCB Compliance Assurance-Enforcement
Compliance Assurance-Enforcement
2 classes of non-compliances: High or Low RiskA written notice is sent to the licensee on the noncompliance(s) assessmentFor Low Risk, the approach is more collaborativeFor High Risk, the approach is more prescriptiveLicensee must take remedial action to correct the noncompliance(s) and notify the ERCB of its completion within the specified time
High Risk Non-Compliance Handling Procedures
Failure to correct the noncompliance(s) will result in escalated enforcement actions and may eventually lead to one or more of the followings:
3rd party audit of the facility
Partial or full suspension of facility operation
Focused or Global “Refer” status on the licensee
Subsequent High Risk noncompliance events that occur in the same compliance category during this time will result in additional High Risk Enforcement Actions
An appeal process is available for any noncompliance assessment
Audit Statistics
ERCB audited 27 facilities in the areas of production measurement, accounting, and reporting in the last 12 monthsLow Risk Noncompliances Findings = 153High Risk Noncompliances Findings = 83
Field Surveillance
ERCB’s Field Surveillance Branch (FS) conducts routine inspection on various facilities around the provinceThere are 9 field centers in different parts of Alberta each with inspectorsThe focus is on safety, environment, and equipment operationCheck for measurement equipment compliance and flare log as part of their inspection
Field Surveillance on Flaring
FS receives notifications from facility operators who flare for a minimum of 4hours and/or over 30 103m3
Receive complaints from residents living near the facility on odour or excessive flaringCall in from other operators or interested parties Inspectors can be dispatch to investigate when required
ERCB Website http://www.ercb.ca
Backup material following, not for presentation
Gas Facility Production –Single Well Battery
Sepa
rato
r
Heavy Oil / Bitumen Production (Density ≥ 920 kg/m3)
Measurement required ifAnnual average flare and/or vent volumes exceed 2.0 103 m3/d for primary heavy oil/crude bitumen facilities, such as Cold Production or Water-flood
Annual average flare and/or vent volumes exceed 0.5 103 m3/d for in-situ heavy oil/crude bitumen facilities, such as SAGD, CSS, THAI processes