Oil and gas companies that measure natural gas and hydrocarbon liquid products need to remember the importance of reviewing and updating their manuals for custody transfer measurement. Said another way, oil and gas companies should periodically review and update their Standard Operating Procedures (SOPs).
Manuals for custody transfer measurement can satisfy the Sarbanes-Oxley (SOX) requirement to outline proper measurement practices. This ensures that your personnel understand how to generate accurate measurements and ensures that outside parties can rely on those measurements.
If you are unsure whether your SOPs are complete or need to be updated, consider this guide to verify the completeness of your SOPs.
What’s the Difference Between Liquid Measurement and Natural Gas Measurement?
To illustrate the uniqueness and complexities of liquid measurement, consider this comparison to gas measurement:
- Liquid measurement is based on determining mass and density; gas measurement is based on volumes and analysis.
- API sets the standards for liquid measurement, while AGA sets the standards for gas measurement.
- Liquid measurement best practices require repeatability and reproducibility to ensure accuracy. Comparatively, gas measurement best practices only require that a measurement is taken once.
It is critical for companies to outline a consistent and repeatable approach to achieve an accurate measurement each time.
How Should the Liquid Measurement Manual Be Structured?
To ensure measurement accuracy and operational efficiency, your liquid measurement manual should be structured to address the following topics:
- Guidelines and Requirements
- Control Evidence
Once you have this structure in place, each topic should detail the following procedures to achieve accurate measurement:
- QA Inspection
- Field Inspection / Verification
- Operation and Maintenance
What Chapters Should Be Included in the Liquid Measurement SOPs Manual?
There are specific requirements that relate to liquid measurement to meet the SOX requirement. Though this list is not comprehensive, at a minimum, you should include the following chapters in your liquid measurement manual:
- EFM for NGLs and Crude
- Turbine Meters
- Crude Sampling
- NGL Sampling
- Tank Sales Points
- Coriolis Meters
- Portable Dew Point Testers
The complete list of chapters you will include may vary. Manuals should be customized to the unique requirements of your organization.
Work With GCI to Update Your SOPs
GCI provides validated SOPs for energy and gas companies. We start with a set of SOX-compliant templates and then populate the templates with the procedures that are essential to your organization.
We include a set of chapters on liquid measurement (as well as gas measurement) that satisfy the SOX requirement. Each portion of the manual identifies the recommended standard (AGA, API, or GPA), allowing companies to reference documents in their SOPs.
The benefit of using our templates is that you ensure SOX compliance. If you need to update or complete your SOPs for liquid measurement, contact GCI today to review your SOPs.