Whether your company is engaged in acquisitions or joint ventures, expanding your pipeline network, or simply trying to weather the storm of economic uncertainty in 2020, you need a comprehensive measurement policy.
A comprehensive measurement policy dictates how to perform accurate and reliable measurement of product, provides training for new measurement personnel, allows you to prove the accuracy of measurements to uphold interconnect commitments, and reduces your risk of legal disputes.
In today’s economic climate, a measurement policy is increasingly valuable to companies to maintain the integrity of operations.
One of the critical pieces of the puzzle to complete your measurement policy is building out measurement Standard Operating Procedures (SOPs) that outline the processes that should be followed to ensure accurate and reliable measurement.
The most effective way to build out your company’s measurement SOPs is using an SOP template that aligns with the Sarbanes-Oxley (SOX) measurement and reporting requirements.
Essentially, SOX says that all financial transactions should be completely transparent; that others can rely on what they are viewing. And, because gas measurement, liquid measurement, or any other hydrocarbon measurement is considered a financial transaction, the measurements generated by your company carry considerable weight.
Because the goal is transparency, measurement SOPs represent the ideal method to repeatedly produce accurate and reliable measurements that satisfy the SOX standard.
Why Use an SOP Template in Measurement SOPs?
One of the most important pieces of measurement SOPs is incorporating the applicable industry standard (API, AGA, ISA, etc.) that identifies the measurement practice behind the process.
Incorporating the industry standard into measurement SOPs supports accurate and reliable measurement in a variety of ways:
- Your company and other parties/stakeholders speak the same language about measurement through the use of the SOX format.
- There is clarity about the applicability of a standard to equipment used in the field.
- Measurement supervisors can ensure that all tools are installed and operating correctly.
- Measurement personnel can readily produce control evidence that satisfies an industry standard to prove validity of the measurements.
Using an SOP template allows you to ensure that the applicable standards are included in each SOP manual that is created. This way, there are no gaps between the SOPs and required SOX format.
How to Address Your Company’s Unique Profile
One other important reason why you should start with an SOP template is that the SOP template can be adapted to your unique operating activity to build the measurement Standard Operating Procedures.
The measurement SOPs should be created in a manner that reflects your company’s:
- Available technology
- Equipment used in the field
- Personnel that supports operations
- Product(s) being produced or transported
- Facilities in use
- Types of contracts entered into
- Whether you are conducting oil and gas operations on federal and Indian lands (BLM Onshore Orders)
This allows you to build out SOP manuals for gas measurement, liquid measurement, and the BLM Onshore Orders that provide guidance on how to accurately and reliably perform measurement based on your unique operating profile.
Then, if your company acquires assets from another company or enters into an expansion of your pipeline network, you can easily adapt the SOP manuals to reflect your new operating profile.
Work with GCI To Create SOP Manuals
Gas Certification Institute (GCI) works with companies to create SOP manuals that align with SOX measurement and reporting requirements.
We start with SOP templates that reflect the industry standards, then we fill in the SOP manuals with information that is specific to your operation.
The result is reliable measurement SOPs that complete your comprehensive measurement policy.
Whether your company is looking to acquire assets, enter into a joint venture, or improve the accuracy of your measurements to uphold contracts, we can help.
Contact us today about creating SOP manuals that reflect your company’s operating profile. Complete our contact form, call 281-598-7200, or email email@example.com.