Field Services Shipper Handbook. Residue Gas & Product Allocation. Spectra Energy Transmission. Revision Tracking

Transcription

1 Spectra Energy Transmission Field Services Shipper Handbook Residue Gas & Product Allocation Prepared by: Gas Accounting Revision Tracking Date Created September 2002 Last Updated September 2017 Document No 51 Revision 70

2 Table of Contents 1 Residue Gas & Product Allocation 3 11 Overview Dawson Plant 3 12 Plant Allocation Cycles Plant Allocation Actual Cycle Plant Allocation Correction Cycle Plant & Receipt Point Corrections 4 13 Rounding 4 14 Forced Balancing 4 15 Receipt Point Analysis Determination Receipt Point Representative Analysis Receipt Point Analysis Used at Start Up FWA Gas Analysis at Exemption Receipt Points Daily FWA Gas Analysis at Receipt Point Fixed Analysis at a Receipt Point Calculate a Recombined Analysis at a Receipt Point Liquid / Gas Ratio Daily Recombined Analysis at a Receipt Point Monthly FWA Recombined Analysis at a Receipt Point Liquid Receipt Points Plant Allocation Adjustments & Exceptions Return Fuel Gas Raw Return Fuel Gas at a Receipt Point Sweet Return Fuel Gas at a Receipt Point Pine River s Kwoen Facility Plant-to-Receipt Point Allocation (Step One) Recovery Efficiency Methodology (REM) Gas Equivalent of Metered Liquid Volume Theoretical Propane Product Allocation Theoretical Butane Product Allocation Theoretical Pentanes Product Allocation Theoretical Sulphur Product Allocation 16 ResidueGas_ProductAllocations VER docx -1-9/11/2017

3 1716 Calculation of Receipt Point Liquids Gas Equivalent Volume and Energy Theoretical Residue Gas Volume Allocation Theoretical Residue Gas Energy Allocation Actual Residue Gas, Energy & By-product Allocation Actual Liquid Product Allocation Actual Residue Gas Volume & Energy Allocation Actual Sulphur Allocation Plant Fuel Gas Allocation Plant Fuel Gas Allocation Determination of Receipt Point Plant Fuel Gas Allocation Gathering Fuel Gas Allocation at a Receipt Point Production Source Allocation at a Receipt Point (Step Two) Receipt Point Daily Proration Theoretical Receipt Point Raw Gas Volume (Sum of Production Source Dailies) Allocation of Receipt Point Values to a Production Source Raw Gas Volume Allocation Residue Volume Allocation Residue Energy Allocation Sulphur Allocation Liquid Product Allocation H 2 S & Acid Gas Allocation Plant Fuel Gas Allocation at a Production Source Gathering Fuel Gas Allocation at a Production Source Residue Gas & Product Splits to Shippers Product Allocation to Marketers Residue Outlet Allocation (Step 3) 38 ResidueGas_ProductAllocations VER docx -2-9/11/2017

4 1 Residue Gas & Product Allocation 11 Overview The allocation process is performed using two logical steps Step 1 allocates residue gas (10 3 m 3 ), energy (GJ), and by-products from a BC Pipeline and Field Services Processing Plant to a Receipt Point (RP) within that plant's raw gas gathering system using the Recovery Efficiency Methodology (REM) Step 2 allocates residue gas (10 3 m 3 ), energy (GJ), and by-products from the RP to the Production Source (PS) on a Prorated Basis with Shipper splits from the PS based on the Production Source Priority Sell Schedule This step is described in detail in Section 110 Note: Although the plant allocation process is performed in two steps, it consists of the following four distinct processes: 1 residue gas, energy and by-products allocation from a Processing Plant to an RP; 2 residue gas, energy and by-products allocation from an RP to a PS; and 3 residue gas, energy and by-products allocation from a PS to a Shipper 4 residue energy is allocated by shipper total to plant outlets This plant allocation process is used at each of the BC Pipeline and Field Services' processing plants (Fort Nelson Area, Pine River, Sikanni and McMahon) BC Pipeline and Field Services allocates residue gas, energy and by-products from the Plant to the RP, based on the measurement of liquids and gas at the RP 111 Dawson Plant The allocation of product at the Dawson facility located in the South Peace area of North Eastern British Columbia is performed using Quorum TIPS software The following description of the allocation processes do not therefore apply to the Dawson Plant 12 Plant Allocation Cycles The plant allocation process may be run as an Actual or as a Correction Cycle The Actual allocation process: is run monthly to determine product allocations for the previous production month; is required for BC Pipeline and Field Services to produce Shipper invoices by the 20 th of each month; is run after the 15 th of each month requires that all RP and PS actuals be received by BC Pipeline and Field Services from the RPO by 9:00 AM CCT of the 16 th day of each month unless otherwise specified requires that all BC Pipeline and Field Services Actual Plant Allocations are to be published by the 20 th of each month The Correction Cycle allocation process: is used to process any material adjustments or corrections to a Plant Allocation; and ResidueGas_ProductAllocations VER docx -3-9/11/2017

5 may be run any time after an Actual Plant Allocation has been approved Note: Both the Actual and Correction Cycle Allocation results are posted via the Customer Interface (CI) 121 Plant Allocation Actual Cycle Each RPO must provide the daily month-end actuals for non-efm RP sites and every PS behind their operated RP, by 9 am Central Clock Time (CCT) on the 16 th for the previous month s production These reported actuals are used for determining the actual month end allocation and Shipper Invoices 122 Plant Allocation Correction Cycle The Plant Allocation Correction Cycle is designed to provide a means of re-running a previously approved Plant Allocation Cycle without impacting the original data The Correction Cycle includes corrections deemed material All corrections are applied with the appropriate adjustments to Reliability, Overproduction, and Contract Demand Crediting 1221 Plant & Receipt Point Corrections Corrections are sometimes required at the Plant and/or RP levels The adjustments are typically required for the following reasons: 1 raw fuel gas at an RP supplied by the BC Pipeline and Field Services RGT system: monthly raw fuel gas volume at an RP is adjusted on a daily basis using the raw sales gas volume; 2 sweet fuel gas at an RP supplied by BC Pipeline and Field Services RGT system: plant residue gas and energy is adjusted on a daily basis by the sum of all sweet and gathering fuel gas used; allocated residue gas and energy at an RP is adjusted by sweet and gathering fuel gas used on a daily basis; 3 corrections are made to the plant residue gas, energy or by-products due to measurement and/or reporting errors; 4 corrections are made to the raw gas volume at an RP due to measurement or reporting errors; 5 allocation exceptions; and 6 audit recommendations 13 Rounding All reported values in the Plant Allocation will conform to the following rounding rules: 1 round volume in 10 3 m 3 to one decimal place; 2 round energy in GJ to whole numbers, no decimal places; 3 round liquid volume in m 3 to three decimal places; and 4 round sulphur volume in tonnes to one decimal place 14 Forced Balancing Forced Balancing is used in the final allocation steps to adjust for rounding errors in the allocation of residue gas, energy and by-products at the production source and Shipper levels Forced Balancing is applied at the production source level as follows: ResidueGas_ProductAllocations VER docx -4-9/11/2017

6 1 The monthly PS values (Residue Volume, Residue Energy, Fuel Gas Volume, Fuel Gas Energy, Sulphur, C 3, C 4, and C 5 ) are force balanced to the monthly plant values Residue volume and energy, including Plant Fuel variances, will be applied to PS with the largest associated volume Propane, Butane, Pentanes and Sulphur variances will be applied to PS with the largest corresponding value, eg PS with the largest propane value will have its propane adjusted and the PS with the largest butane value will have its butane adjusted Any residual rounding error after completion of the forced balancing of the PS to RP will again be force balanced The sum of the monthly variances at the PS levels for Residue volume, energy (including plant fuel), sulphur, C 3, C 4, and C 5 will be force balanced to the monthly plant values Daily variances will be applied to the PS with the largest associated volume, eg PS with the largest residue gas volume will have its residue gas volume adjusted and the PS with the largest propane volume will have its propane volume adjusted 2 The daily Shipper allocated values are force balanced to their respective daily PS values Any variances are applied to the Shipper with the largest allocated residue volume NOTE: Raw, Acid and H 2 S volumes are not force balanced to the RP; however, these products are force balanced as part of the PS to Shipper process 15 Receipt Point Analysis Determination The analysis at an RP must be calculated before any theoretical calculations or actual allocation of residue gas, energy, and by-products can be determined The RP analysis process is outlined as follows: 1 The RPO validates and submits a representative Receipt Point Analysis to Volume Accounting for use in the allocation process This is the primary and desired method for obtaining Receipt Point analyses 2 If no RP sample is received (see note below regarding RP sample exceptions) by noon on the 1 st day of the following month the allocation will use the most recent validated RP analysis submitted to Volume Accounting by the RPO Note: FWA (flow weighted average) Exceptions (ie: Pine River) Under certain circumstances SET West will approve a RP analysis compliance exemption For these RP s the analysis will be determined by the flow-weighted average (FWA) at the production source level 3 The FWA process is as follows: a) calculate the liquid/gas ratio for each RP b) calculate the daily recombined analysis at each RP c) calculate the monthly FWA recombined analysis at each RP 151 Receipt Point Representative Analysis A representative RP sample will be taken on a predetermined frequency basis The sampling frequencies are outlined in the RP Sampling Risk Matrix (MES-010) The validated sample will be submitted by the RPO to SET West Volume Accounting for use in the allocation process by noon on the 1 st day of the following production month Only RPO validated RP samples taken by an approved lab will be accepted for use as a RP representative analysis ResidueGas_ProductAllocations VER docx -5-9/11/2017

7 If an analysis is not received 30 days past the scheduled frequency sampling date a noncompliance letter will be sent out advising the RPO of the situation The letter will advise the RPO that a sample must be sent to SET West within 30 days If an RP sample is still not received after this notice period (60 days after original scheduled sampling date) then SET West will close and lock the tap valve effectively shutting in the RP SET West may, at its sole discretion, allow the RP to continue flowing subject to a proposed plan of corrective action acceptable to SET West (MES-010) 1511 Receipt Point Analysis Used at Start Up Due to the varying nature of the gas analysis profile at an RP during the commissioning, recommissioning or start up process the following procedures will be followed: a) SET West will receive well analyses and estimated flow rates from the producer for all the wells upstream of the new RP b) The representative well analyses upstream of the RP will be entered into the Set West system database c) PSs will be created based on the well analysis reported from the producer for each well d) A FWA will be created for each PS based on the provided well analysis and estimated flow rate data e) The PS FWAs will be used to calculate the RP analysis for the allocation process as per item 153 in this document f) RP samples will be taken every month and submitted to SET West for evaluation g) Once three consecutive representative monthly RP samples have been received by SET West the RP analysis used for the allocation process will be changed from FWA to use the RP sample h) An RP sampling frequency will then be determined from the RP Sampling Risk Matrix (MES-010) 152 FWA Gas Analysis at Exemption Receipt Points The FWA process outlined below will only be used for those sites that have SET West exemption authorization The FWA gas analysis at an Exemption RP is based on the monthly "Fixed Representative" gas analysis for each PS upstream of that RP Using the RPO daily reported PS actual volumes a FWA gas analysis is calculated for the RP As each PS will have a fixed representative gas analysis the PS gas analysis is a complete gas composition in mole fractions Therefore using the daily PS raw gas volume, a FWA is calculated for each gas component at the RP level This is done by flow weighting all the PS volumes multiplied by the applicable gas component s mole fraction for each gas component (including relative density) on a daily basis 153 Daily FWA Gas Analysis at Receipt Point The daily FWA gas analysis must be calculated for all RPs The FWA gas analysis at an RP is based on the monthly "Fixed Representative" gas analysis for each PS upstream of that RP Using either the RPO daily reported PS actual or estimated volumes, an FWA gas analysis is calculated for each RP Each PS will have a fixed representative gas analysis The PS gas analysis is a complete gas composition in mole fractions Using the daily PS raw gas volume, an FWA is calculated for each gas component at the RP level by summing all the PS volumes multiplied by the applicable gas component s mole fraction This process is done for each gas component (including relative density) on a daily basis ResidueGas_ProductAllocations VER docx -6-9/11/2017

8 RPFWA c1d1 = ((RGV ps1 x PSCOMP ps1 ) (RGV ps2 x PSCOMP ps2 )) (RGV psn x PSCOMP psn ) / V Where: RPFWA c1d1 = daily FWA value for component one for Day 1 (MolF) RGV ps1 = daily raw gas volume for PS1 for Day 1 (10 3 m 3 ) RGV ps2 = daily raw gas volume for PS2 for Day 1 (10 3 m 3 ) RGV psn = daily raw gas volume for PSn for Day 1 (10 3 m 3 ) PSCOMP ps1 = PSCOMP ps2 = PSCOMP psn = monthly fixed gas component one value for PS1 (MolF) monthly fixed gas component one value for PS2 (MolF) monthly fixed gas component one value for PSn (MolF) V = raw gas volume at the RP (10 3 m 3 ) ResidueGas_ProductAllocations VER docx -7-9/11/2017

9 The following table gives an example of determining the FWA for He Production Source at a Receipt Point Gas Volume He MolF He Volume He FWA MolF PS PS PS RP Totals Example formula: 04/3700 = Fixed Analysis at a Receipt Point If an RP falls within the definition of a PS, then the FWA analysis at the RP may be obtained from the proportional sampler This analysis is applied to each day and to each PS associated with that RP A daily FWA analysis will still be calculated but since all the PSs associated with that RP will have the same analysis, the FWA analysis calculated for the RP is the same as the PS(s) The proportional sampler and PS analysis determination is defined in detail in the Production Source Grouping Section of the Shipper Handbook 155 Calculate a Recombined Analysis at a Receipt Point The Recovery Efficiency Methodology (REM) uses the recombined analysis at the RP for the determination of theoretical RP by-products recovery efficiency factors In order to calculate the recombined analysis at an RP, both the gas and liquid volumes and their associated compositions must be known If there is no liquid metering and liquid sampling at an RP, then the recombined analysis is assumed to be that of the gas composition This also assumes that the liquid volumes measured at the RP will be converted to a gas equivalent volume and added to the raw gas volume to form a recombined raw gas volume This recombined volume will be used for allocation of plant products and fuel 1551 Liquid / Gas Ratio The liquid/gas ratio at an RP is required to calculate the recombined analysis at the RP The liquid/gas ratio is determined by dividing the raw liquid volume (RLV) by the raw gas volume (V) at an RP This ratio requires the raw liquid and gas volumes to be measured litre units and 10 3 m 3 respectively If there is no liquid metering at an RP, then the liquid/gas ratio is zero The liquid/gas ratio is calculated using actual/monthly RP raw volumes LGRATIO = RLV / V Where: LGRATIO = actual liquid/gas ratio (ml/m 3 ) RLV = raw liquid volume at the RP (litres) V = raw gas volume at the RP (10 3 m 3 ) ResidueGas_ProductAllocations VER docx -8-9/11/2017

10 Note: Reference to RP Raw Gas Volumes, with the exception to this LGRATIO formula, will include the gas equivalent volumes of any RP metered liquids 1552 Daily Recombined Analysis at a Receipt Point To determine the recombined analysis at the RP, the gas and liquid composition must be converted to common units Using the liquid/gas ratio, the liquid volume fraction is converted to ml/m 3 The ml/m 3 determination for the gas phase is calculated using the gas mole fraction and the appropriate GPA (Gas Processors Association) constants Once the liquid volume and gas fractions have been converted to ml/m 3, the values can be summed together to obtain the liquid recombined value for each component Liquid recombined values are used for determination of the theoretical liquid by-products allocation Similarly, the mol/m 3 for the gas and liquid analysis are summed to determine the gas recombined mole fraction Again, the gas recombined mole fraction is used for recovery efficiency calculations, and the theoretical residue gas volume and energy determinations Determination of the recombined analysis at an RP is broken down into the following basic steps: 1 Using the liquid/gas ratio and liquid volume fraction (from the laboratory liquid analysis), calculate the ml/m 3 for each component LIQCOM 1 = LGRATIO x LIQVF 1 (liquid common unit conversion) Where: LIQCOM 1 = ml/m 3 for liquid component one at RP1 LGRATIO = LIQVF 1 = actual liquid/gas ratio for RP1 (dimensionless) liquid volume fraction for component one at RP1 (VolF) 2 Using the GPA liquid constant (cm 3 /mol) for each liquid component, calculate the mol/m 3 for each component (ml/m 3 /Liq Constant = mol/m 3 ) The constant for volume liquid (cm 3 /mol) is obtained from the GPA Physical Constants publication 2145 SI-03 3 Calculate the gas component mol/m 3 for each component based on the gas Z factor and gas composition mole fraction (obtained from the daily FWA gas analysis) The Z factor is based on the equation provided through AGA Report No 5 Mol/m 3 = Z factor = 1 / Z factor / * Raw Gas Mole Fraction 1 / [ (00101 * Raw Gas RP) 0007 * (sum of mole fractions for He, H 2, N 2, and CO 2 )] Mole Volume = at standard condition 4 Using each gas component's mol/m 3 and the GPA volume liquid cm 3 /mol, calculate the ml/m 3 for each gas component 5 Add the liquid and gas mol/m 3 of each component and normalize one (or 100%) to obtain a result in mole fractions 6 The recombined analysis is determined by adding the liquid and gas ml/m 3 to obtain each component's ml/m 3 The recombined gas and liquid component data is used throughout the Recovery Efficiency Method ResidueGas_ProductAllocations VER docx -9-9/11/2017

11 1553 Monthly FWA Recombined Analysis at a Receipt Point A monthly FWA analysis at an RP is required for the plant-to-rp allocation Basically, an FWA analysis for each RP is calculated using the daily recombined analysis; see paragraph 8322 The monthly FWA analysis is weighted using the daily raw gas volume at an RP MRPFWA c1 = ((V 1 x RPFWA c1d1 ) (V 2 x RPFWA c1d2 )) (V n x RPFWA c1dn ) / (V 1 V 2 V n ) Where: MRPFWA c1 = monthly FWA recombined value for component one (MolF) V 1 = daily raw gas volume for RP1 for Day 1 (10 3 m 3 ) V 2 = daily raw gas volume for RP1 for Day 2 (10 3 m 3 ) V n = daily raw gas volume for RP1 for Day n (10 3 m 3 ) RPFWA c1d1 = RPFWA c1d2 = RPFWA c1dn = daily recombined value for component one Day 1 (MolF) daily recombined value for component one Day 2 (MolF) daily recombined value for component one Day n (MolF) The same calculation is repeated for each of the recombined gas and liquid components (eg He, H 2, C 1, C 2, through to C 10 ), including relative gas density and ml/m 3 of propane, butane, and pentanes The table below gives an example determining the monthly FWA for He Receipt Point 1 Gas Volume He He Volume He FWA MolF Day Day Day n RP Monthly total Component Weighted Average Example formula: 12/11050 = The monthly FWA analysis at an RP must be normalized to one (or 100%) ResidueGas_ProductAllocations VER docx -10-9/11/2017

12 156 Liquid Receipt Points With prior approval, SET West allows for the delivery of raw liquids without an associated gas stream into the McMahon gathering system A Liquid Receipt Point (LRP) has raw liquid volumes reported in cubic meters (m 3 ) which will converted to a Raw Gas Volume by using the RP Gas Equivalent Factor that is supplied by the lab Metered LV (Day 1) x GEF (RP) ) = RGV (Day 1) Metered LV (Day 2) x GEF (RP) ) = RGV (Day 2) Metered LV (Day n) x GEF (RP) ) = RGV (Day n) Where: Metered LV (Day 1) = Daily metered receipt point liquid volume (m 3 ) GEF (RP) = Receipt point gas equivalent factor RGV (Day 1) = Daily receipt point gas equivalent volume (10 3 m 3 ) of liquid volume Once the LRP is converted to a Gas Equivalent Volume the RP sample mole fractions will be used and the RP will be treated like a standard Raw Gas RP 16 Plant Allocation Adjustments & Exceptions There are a number of adjustments and exceptions that must be handled before the plant allocation process is run These are addressed below 161 Return Fuel Gas Raw fuel gas is provided to the production facility from the RGT system for emergency situations when normal fuel supplies are not available The raw return fuel gas tap must be located directly downstream of the raw sales gas meter There are two different scenarios for return fuel gas that must be dealt with in the plant allocation process Return fuel gas to an RPO can be supplied either from the RGT system or the sweet gas transmission system (downstream of the plant outlet metering) 1611 Raw Return Fuel Gas at a Receipt Point Raw return fuel gas is any raw gas supplied to a production facility from a tap located downstream of the RP sales gas meter Return fuel gas at an RP is subtracted from the raw gas sales meter at the RP, resulting in a net raw gas volume at the RP The net raw gas volume is used within the plant allocation process To properly account for the return fuel gas at an RP, the RPO must provide the return fuel gas volume to BC Pipeline and Field Services as follows: 1 The return fuel gas meter can be connected to the electronic flow measurement (EFM) device at the RP in order to determine a net raw gas volume at the RP In this case, the EFM device provides both the sales and return fuel gas volumes and the net volume is used in the Plant Allocation 2 If the return fuel gas meter is not connected to the EFM device, then the RPO must provide a monthly fuel gas volume If an actual monthly fuel gas volume cannot be provided to BC ResidueGas_ProductAllocations VER docx -11-9/11/2017

13 Pipeline and Field Services before the 16 th of the month, then an estimate fuel gas volume is required from the RPO before the 16 th The monthly return fuel gas volume is pro-rated back to each day that there was an actual sales gas volume The pro-ration calculation is based on the sales raw gas volume for each day in that month V 1 = V s1 - V f1 V f1 = V fuel x (V s1 /VTOT s ) VTOT s = V s1 V s2 V sn Where: V 1 = raw gas volume at the RP for Day 1 (10 3 m 3 ) V f1 = the daily theoretical return fuel gas volume at an RP for day1 (10 3 m 3 ) V fuel = the monthly return fuel gas volume at an RP (10 3 m 3 ) VTOT s = the monthly raw gas volume at an RP (10 3 m 3 ) V s1 = the daily sales raw gas volume at an RP for Day 1 (10 3 m 3 ) V s2 = the daily sales raw gas volume at an RP for Day 2 (10 3 m 3 ) V sn = the daily sales raw gas volume at an RP for Day n (10 3 m 3 ) 1612 Sweet Return Fuel Gas at a Receipt Point If sweet return fuel gas is provided from a point other than the plant outlet The fuel gas has been sweetened through a secondary BC Pipeline and Field Services facility somewhere upstream of the processing plant This sweet gas is provided to producers upstream on the secondary facility for continuous fuel gas usage at an RP For those RPs that obtain sweet fuel gas from the RGT system, the fuel gas is treated as residue gas and energy, and thus subtracted from the actual residue gas and energy allocated to that RP To properly account for the RGT gas, the total sweet fuel gas and energy supplied to RPs must also be added to the plant residue gas volume and energy SUMFGV = RESFGV 1 RESFGV 2 RESFGV n Where: SUMFGV = the total return fuel gas (sweet) volume for all RP for the month (10 3 m 3 ) RESFGV 1 = the return fuel gas (sweet) volume for RP1 (10 3 m 3 ) RESFGV 2 = the return fuel gas (sweet) volume for RP2 (10 3 m 3 ) RESFGV n = the return fuel gas (sweet) volume for RPn (10 3 m 3 ) ResidueGas_ProductAllocations VER docx -12-9/11/2017

14 Similarly, the total return fuel gas energy for a month has to be determined since this is added to the plant residue gas and energy SUMFGQ = RESFGQ 1 RESFGQ 2 RESFGQ n Where: SUMFGQ = the total return fuel gas (sweet) energy for all RP for the month (GJ) RESFGQ 1 = RESFGQ 2 = RESFGQ n = the return fuel gas (sweet) energy for RP1 (GJ) the return fuel gas (sweet) energy for RP2 (GJ) the return fuel gas (sweet) energy for RPn (GJ) The monthly sweet return fuel gas volume and energy at an RP is subtracted from the allocated residue volume and energy to that RP Negative values are adjusted to the next day 162 Pine River s Kwoen Facility The Kwoen facility is located upstream of the Pine River processing plant, and acts as a pretreatment facility Acid gas is extracted from the supplying streams prior to the gas reaching Pine River for further treatment From a plant allocation perspective the allocation will occur as a single plant concept and not have a separate allocation for the gas processed at Kwoen The gas will be treated as just another train flowing to the Pine River processing plant The acid gas, which is removed at the Kwoen facility, will be re-injected into depleted gas wells for the purpose of reducing the acid and sulphur content of the gas flowing to Pine River Shippers contracted at Kwoen will qualify for a reduction in their allocated elemental sulphur produced at the Pine River plant This reduction in allocated sulphur will be based on their deemed amount of H 2 S volume injected at Kwoen This facility is currently off line 17 Plant-to-Receipt Point Allocation (Step One) This section defines the formulas and procedures used to perform monthly allocations of residue gas, energy and by-products from a BC P&FS process plant to an RP In order to complete the allocations, the following steps must be completed: 1 Recovery Efficiency Methodology (REM) 2 Theoretical Propane Product Allocation 3 Theoretical Butane Product Allocation 4 Theoretical Pentanes Plus Allocation 5 Theoretical Sulphur Product Allocation 6 Theoretical Residue Gas Volume Allocation 7 Theoretical Residue Gas Energy Allocation 171 Recovery Efficiency Methodology (REM) The REM is based on the calculation of recovery efficiencies for each of the propane, butane and pentanes plus components Unique recovery efficiencies are calculated for each of these components at each RP based on the RP composition for the particular component and the remaining concentration of the component in the plant residue gas stream Plant liquids are allocated back to the RP based on REM ResidueGas_ProductAllocations VER docx -13-9/11/2017

15 If a plant does not recover any propane, butane or pentanes plus, the recovery efficiency for each RP will be set to zero In order to determine the allocation of residue gas and energy, the recovery efficiency for each of the liquid by-products must be determined first The recovery efficiency factor is used to determine the theoretical amount of by-products that should be allocated to an RP The actual by-products allocation is based on a pro-rata allocation of the actual plant byproducts to the RP using the theoretical allocation amount and total theoretical for all RPs in a raw gas gathering system Residue gas and energy allocations are based on pro-rata allocation of the actual plant residue gas and energy after accounting for liquid by-products recoveries and fuel gas shrinkage Ideally, the recovery efficiency calculation will result in a number between zero and one However, for instances where the RP component (propane, butane, or pentanes) content is lower than the content of the same component in the plant residue gas, then the recovery efficiency will result in a negative value Negative recovery efficiencies will result in zero allocation of that component as a liquid by-product to an RP 1711 Gas Equivalent of Metered Liquid Volume At the start of the monthly allocation process the Gas Equivalent Volume of the liquids metered at a Receipt Point must be calculated on a daily basis and added to the Receipt Point Metered Raw Gas Volume The Gas Equivalent Factor will be supplied by the Lab calculating the Receipt Point Sample Metered RGV (Day 1) (Metered LV (Day 1) x GEF (RP) ) = RGV (Day 1) Metered RGV (Day 2) (Metered LV (Day 2) x GEF (RP) ) = RGV (Day 2) Metered RGV (Day n) (Metered LV (Day n) x GEF (RP) ) = RGV (Day n) Where: Metered RGV (Day 1) = Daily metered receipt point raw gas volume (10 3 m 3 ) Metered LV (Day 1) = Daily metered receipt point liquid volume (m 3 ) GEF (RP) = RGV (Day 1) = Receipt point gas equivalent factor Daily receipt point raw gas volume including liquid gas equivalent volume (10 3 m 3 ) ResidueGas_ProductAllocations VER docx -14-9/11/2017

16 1712 Theoretical Propane Product Allocation To determine the theoretical amount of propane allocated to an RP, the RP recovery efficiency has to be calculated The formula for determining the theoretical propane allocation and propane recover efficiency is as follows: APROP = V x C 3 ml x EC 3 EC 3 = 1 (Z x C 3 RES) / ((1 - C 3 RES) x V x C 3 ) Where: APROP = theoretical volume for propane allocation at an RP (litres) V = raw gas volume at the RP (10 3 m 3 ) C 3 = recombined propane content at an RP (ml/m 3 ) EC 3 = C 3 = propane recovery efficiency at an RP recombined propane content at an RP (MolF) Z = volume of components lighter than propane at an RP (ie, H 2 He N 2 C 1 C 2 ) (10 3 m 3 ) C 3 RES = propane content of plant residue gas (MolF) 1713 Theoretical Butane Product Allocation To determine the theoretical amount of butane allocated to an RP, the RP recovery efficiency for each of ic 4 and NC 4 must be calculated The formula for determining the i-butane recovery efficiency and the theoretical i-butane allocation is as follows: ABUT = AiBUT AnBUT AiBUT = V x ic 4ml x EiC 4 EiC 4 = 1 - (W x ic 4 RES) / ((1 - ic 4 RES) x V x ic 4 ) Where: AiBUT = theoretical volume for i-butane allocation at an RP (litres) AnBUT = theoretical volume for n-butane allocation at an RP (litres) V = raw gas volume at the RP (10 3 m 3 ) ic 4 ml = recombined i-butane content at an RP (ml/m 3 ) EiC 4 = ic 4 = i-butane recovery efficiency at an RP recombined i-butane content at an RP (MolF) W = volume of components lighter than i-butane at an RP (ie, H 2 He N 2 C 1 C 2 C 3 x (1-EC 3 )) (10 3 m 3 ) ic 4 RES = i-butane content of plant residue gas (MolF) If the RP i-butane content is lower than the i-butane content in the plant residue gas, then the recovery efficiency will result in a negative value This will result in no i-butane liquids being allocated to the RP An analogous calculation procedure is performed for n-butane The only difference is that n-butane values replace the i-butane values above and the equation showing the components lighter than n-butane would contain the additional parameter ic 4 x (1 EiC 4 ) The theoretical allocations calculated for ic 4 and nc 4 are then summed up for a theoretical butane amount for the RP, ie, ABUT, where ABUT is the theoretical volume of butane allocated to the RP in litres of product ResidueGas_ProductAllocations VER docx -15-9/11/2017

17 1714 Theoretical Pentanes Product Allocation To determine the theoretical amount of pentanes allocated to an RP, the RP recovery efficiencies must be calculated for each of the ic 5 to C 10 components Once each component s theoretical amounts are determined, they are summed to determine the total C 5 amount for that RP (AC 5 ) For example, the formula for determining the i-pentane recovery efficiency and the theoretical pentanes (ic 5 ) allocation is shown below A similar calculation is done for the theoretical allocation and recovery efficiencies for each of nc 5 through to C 10 Note: each component s equations would ensure that volumes of components lighter than the component being calculated accounted for AC 5 = AiC 5 AnC 5 AC 6 AC 7 AC 8 AC 9 AC 10 Example of Theoretical Allocation and Recovery Efficiency for the ic 5 Component AiC 5 = V x ic 5 ml x EiC 5 EiC 5 = 1 - (T x ic 5 RES) / ((1 - ic 5 RES) x V x ic 5 ) Where: AiC 5 = theoretical volume for i-pentane allocation at an RP (litres) V = raw gas volume at the RP (10 3 m 3 ) ic 5 ml = recombined i-pentane content at an RP (ml/m 3 ) EiC 5 = ic 5 = i-pentane recovery efficiency at an RP recombined i-pentane content at an RP (MolF) T = volume of components lighter than i-pentane at an RP (ie, H 2 He N 2 C 1 C 2 C 3 x (1-EC 3 ) ic 4 x (1-EiC 4 ) NC 4 x (1 ENC 4 )) (10 3 m 3 ) ic 5 RES = i-pentanes content of plant residue gas (MolF) 1715 Theoretical Sulphur Product Allocation Allocation of sulphur product is based on the amount of H 2 S volume at the RP The theoretical amount of sulphur product at any RP is calculated as follows: ASUL = V x H 2 S x 1356 (theoretical sulphur allocation) Where: ASUL = theoretical sulphur by-product at an RP (tonnes) V = raw gas volume at an RP (10 3 m 3 ) H 2 S = recombined H 2 S content at an RP (MolF) 1356 = conversion factor for tonnes sulphur per 10 3 m 3 H 2 S 1716 Calculation of Receipt Point Liquids Gas Equivalent Volume and Energy The volume of liquids allocated to a Receipt Point is converted to a Gas Equivalent Volume (GEV) and energy value and subtracted from the monthly Receipt Point Theoretical Volume and Energy calculation The GEV is subtracted from the RP theoretical volume and energy calculations in order to compensate for product received in the liquid allocation process ResidueGas_ProductAllocations VER docx -16-9/11/2017

18 RP Liquids Gas Equivalent Volume 1) RP GEV = C 3 GEV C 4 GEV C 5 GEV 2) C 3 GEV = C 1(Propane) C 2(Propane) C 3(Propane) ic 4(Propane) nc 4(Propane) C 7 (Propane) C 4 GEV = C 5 GEV = C 1(Butane) C 2(Butane) C 3(Butane) ic 4(Butane) nc 4(Butane) C 7 (Butane) C 1(Pentane) C 2(Pentane) C 3(Pentane) ic 4(Pentane) nc 4(Pentane) C 7 (Pentane) 3) C 1(Propane) = C 3(RP) x C 1 VolF (C3) x C 1 RGEF C 2(Propane) = C 3(RP) x C 2 VolF (C3) x C 2 RGEF C 7 (Propane) = C 3(RP) x C 7 VolF (C3) x C 7 RGEF C 1(Butane) = C 4(RP) x C 1 VolF (C4) x C 1 RGEF C 2(Butane) = C 4(RP) x C 2 VolF (C4) x C 2 RGEF C 7 (Butane) = C 4(RP) x C 7 VolF (C4) x C 7 RGEF C 1(Pentane) = C 5(RP) x C 1 VolF (C5) x C 1 RGEF C 2(Pentane) = C 5(RP) x C 2 VolF (C5) x C 2 RGEF ResidueGas_ProductAllocations VER docx -17-9/11/2017

19 RP Liquids Gas Equivalent Volume (Continued) C 7 (Pentane) = C 5(RP) x C 7 VolF (C5) x C 7 RGEF Where: RP GEV = gas equivalent volume of allocated liquids at a Receipt Point (10 3 m 3 ) C 3 GEV = gas equivalent volume of allocated Propane at a Receipt Point (10 3 m 3 ) C 4 GEV = gas equivalent volume of allocated Butane at a Receipt Point (10 3 m 3 ) C 5 GEV = gas equivalent volume of allocated Pentane at a Receipt Point (10 3 m 3 ) n (Propane) = gas equivalent volume of component n in allocated Propane (10 3 m 3 ) n (Butane) = gas equivalent volume of component n in allocated Butane (10 3 m 3 ) n (Pentane) = gas equivalent volume of component n in allocated Pentane (10 3 m 3 ) C 3(RP) = allocated propane at a receipt point (ml/m 3 ) C 4(RP) = allocated butane at a receipt point (ml/m 3 ) C 5(RP) = allocated pentane at a receipt point (ml/m 3 ) nvolf (C3) = monthly analysis of plant propane for component n (VolF) nvolf (C4) = monthly analysis of plant butane for component n (VolF) nvolf (C5) = monthly analysis of plant pentane for component n (VolF) n RGEF =ratio, ideal gas/ liquid for component n ResidueGas_ProductAllocations VER docx -18-9/11/2017

20 RP Liquids Gas Equivalent Energy 1) RP GEV(Energy) = ( [ C 1(Propane) C 1(Butane) C 1(Pentane) ] x HVC 1 ) ( [ C 2(Propane) C 2(Butane) C 2(Pentane) ] x HVC 2 ) ( [ C 3(Propane) C 3(Butane) C 3(Pentane) ] x HVC 3 ) ( [ ic 4(Propane) ic 4(Butane) ic 4(Pentane) ] x HViC 4 ) ( [ C 7 (Propane) C 7 (Butane) C 7 (Pentane) ] x HVC 7 ) Where: n (Propane) = n (Butane) = n (Pentane) = HVn = RP GEV (Energy) = gas equivalent volume of allocated liquids at a Receipt Point (GJ) gas equivalent volume of component n in allocated propane at a receipt point gas equivalent volume of component n in allocated butane at a receipt point gas equivalent volume of component n in allocated pentane at a receipt point MJ/m 3, fuel as ideal gas for component n (Heating Value) 1717 Theoretical Residue Gas Volume Allocation Allocation of residue gas and energy to an RP also takes into account the RP composition in relation to the plant residue gas composition To determine the theoretical amount of residue volume and energy allocated, the RP recovery efficiencies are required along with the recombined raw gas RP analysis The formula for determining the theoretical residue volume allocation is as follows: Theoretical Allocation of Residue Volume ARESV = V x (N 2 C 1 C 2 C 3 ic 4 NC 4 ic 5 C 10 ) - GEV Where: ARESV = theoretical residue volume allocation to an RP (10 3 m 3 ) V = raw gas volume at the RP (10 3 m 3 ) N 2 = C 1 = C 2 = C 10 = recombined nitrogen content at an RP (MolF) recombined methane content at an RP (MolF) recombined ethane content at an RP (MolF) recombined decane plus content at an RP (MolF) GEV = allocated liquids gas equivalent volume at an RP (10 3 m 3 ) 1718 Theoretical Residue Gas Energy Allocation In order to allocate the proper heating value (energy) to an RP, the individual heating values for each component in the residue volume formula are added ResidueGas_ProductAllocations VER docx -19-9/11/2017

21 Theoretical Allocation of Residue Energy ARESQ = V x [(N 2 x HVN 2 ) (C 1 x HVC 1 ) (C 2 x HVC 2 ) (C 3 x HVC 3 ) (ic 4 x HViC 4 ) (NC 4 x HVNC 4 ) (ic 5 x HViC 5 ) (C 10 x HVC 10 )] GEV (Energy) Where: ARESQ = theoretical residue gas energy allocation to an RP (GJ) V = raw gas volume at the RP (10 3 m 3 ) N 2 = C 1 = C 2 = C 10 = recombined nitrogen content at an RP (MolF) recombined methane content at an RP (MolF) recombined ethane content at an RP (MolF) recombined decane plus content at an RP (MolF) HVN 2 = heating value for nitrogen (MJ/m 3 ) HVC 1 = heating value for methane (MJ/m 3 ) HVC 2 = heating value for ethane (MJ/m 3 ) HVC 10 = heating value for decane plus (MJ/m 3 ) GEV (Energy) = allocated liquids gas equivalent energy at an RP (GJ) 18 Actual Residue Gas, Energy & By-product Allocation The actual allocation of residue gas, energy and by-products to an RP is processed after the REM process is complete 181 Actual Liquid Product Allocation Actual liquid by-products from the plant are allocated pro-rata to each RP The equations for determining the actual liquid product allocations are as follows: Propane C 3 ACT = (APROP / TAPROP) x C 3 PLANT Where: C 3 ACT = actual propane allocated to an RP (m 3 ) APROP = TAPROP = theoretical volume for propane allocation at an RP (litres) the total theoretical volume for propane from all RPs (litres) C 3 PLANT = actual propane liquid production from plant for month (m 3 ) Butane C 4 ACT = (ABUT / TABUT) x C 4 PLANT Where: C 4 ACT = actual butane allocated to an RP (m 3 ) ABUT = theoretical volume for butane allocation at an RP (litres) TABUT = the total theoretical volume for butane from all RPs (litres) C 4 PLANT = actual butane liquid production from plant for month (m 3 ) Pentanes C 5 ACT = (AC 5 / TAC 5 ) x C 5 PLANT -20-9/11/2017 ResidueGas_ProductAllocations VER docx

22 Where: C 5 ACT = actual pentanes allocated to an RP (m 3 ) AC 5 = TAC 5 = theoretical volume for pentanes allocated to an RP (litres) the total theoretical volume for pentanes from all RPs (litres) C 5 PLANT = actual pentanes liquid production from plant for month (m 3 ) 182 Actual Residue Gas Volume & Energy Allocation The plant residue gas volume and energy is pro-rated to each RP Equations for determining the actual allocate volume of residue gas and energy to an RP are as follows: Residue Gas Volume RESVACT = ((ARESV / TARESV) x RESVPLANT) - RESFGV Where: RESVACT = actual residue volume allocated to an RP (10 3 m 3 ) ARESV = theoretical residue volume allocated to an RP (10 3 m 3 ) TARESV = total theoretical residue volume allocated to all RPs (10 3 m 3 ) RESVPLANT = actual net residue volume from plant (10 3 m 3 ) RESFGV = measured return fuel gas (sweet) volume at an RP (10 3 m 3 ) Residue Gas Energy RESQACT = ((ARESQ / TARESQ) x RESQPLANT) - RESFGQ Where: RESQACT = actual residue gas energy allocated to an RP (GJ) ARESQ = TARESQ = RESQPLANT = RESFGQ = 183 Actual Sulphur Allocation theoretical residue gas energy allocation to an RP (GJ) total theoretical gas energy allocated to all RPs (GJ) actual net residue energy volume from plant (GJ) measured return fuel gas (sweet) energy at an RP (GJ) Actual sulphur by-product from the plant is allocated pro-rata to each RP The equation for determining the actual sulphur by-product allocation is as follows: SULACT = (ASUL / TASUL) x SULPLANT Where: SULACT = actual sulphur allocated to an RP (tonnes) ASUL = TASUL = SULPLANT = 19 Plant Fuel Gas Allocation theoretical sulphur to an RP (tonnes) total theoretical sulphur allocated to all RPs (tonnes) actual amount of sulphur produced at plant (tonnes) Starting the production month of November 2009 Fuel Gas will be allocated and reported using two distinct processes The process will depend on which of the two following groups a fuel meter falls under: 1) Plant Fuel Gas 2) Gathering Fuel Gas ResidueGas_ProductAllocations VER docx -21-9/11/2017

23 Plant Fuel Gas is defined as that which is burned during processing of the raw gas into products This includes, but is not limited to, the fuel gas used for steam production, compression within the plant, boilers and heaters Gathering Fuel Gas is defined as that which is burned in order to bring the raw gas to the plant inlet This includes, but is not limited to, fuel gas used in the gathering system compressor and booster stations and plant inlet compressor units 191 Plant Fuel Gas Allocation The plant fuel gas allocation is based on the RP s theoretical usage of a functional unit process within a plant and that unit s amount of fuel usage There are three functional units defined within a processing plant: 1 Functional unit based on Acid Gas This process includes Gas treating, Sulphur plant, Sulfreen unit, Drizo/Dehy unit and the Dew point control function 2 Functional unit based on Pentanes This process includes pentanes stabilization 3 Functional unit based on Propane and Butane This process includes Absorption and Fractionation These plant-specific percentages can be applied to a single formula to allocate plant fuel to each RP Since the percent of fuel gas usage of each functional unit process is different at each plant, customized percent fuel usage for each functional unit is unique for each plant These fuel usage percentages will be periodically reviewed and updated on an as needed basis The following table lists the Functional Unit Factors as of December 2014 Functional Units McMahon Fort Nelson Area Pine River Sikanni Aitken Creek Acid Gas Pentanes Propane/Butane Raw Total Determination of Receipt Point Plant Fuel Gas Allocation For each RP, the associated plant fuel gas (volume and energy) must be determined for each month based on that plant s functional units When using component content at a receipt point level in any of the allocation equations, the value is always based on the recombined content The fuel gas usage is determined at an RP based on each of the functional unit s recombined usage Acid Gas Plant Fuel Usage AGVOL rp1 = PFGV x AGPU rp1 ResidueGas_ProductAllocations VER docx -22-9/11/2017

24 PFGV = Plant Fuel Gas Volume (10 3 m 3 ) AGPU rp1 = AGFF x [(V rp1 x (H 2 S rp1 CO 2 rp1 )) / AGTOT] AGTOT = [(V rp1 x (H 2 S rp1 CO 2 rp1 )) (V rp2 x (H 2 S rp2 CO 2 rp2 )) (V rpn x (H 2 S rpn CO 2 rpn ))] Where: AGVOL rp1 = the acid gas fuel volume for RP1 (10 3 m 3 ) AGPU rp1 = AGFF = acid gas plant fuel usage for RP1 (fraction) the acid gas plant fuel factor (percent) AGTOT = the total acid gas volume from all RPs (10 3 m 3 ) V rp1 = raw gas volume at RP1 (10 3 m 3 ) V rp2 = raw gas volume at RP2 (10 3 m 3 ) V rpn = raw gas volume at RPn (10 3 m 3 ) H 2 S rp1 = H 2 S rp2 = H 2 S rpn = CO 2 rp1 = CO 2 rp2 = CO 2 rpn = the recombined H 2 S content for RP1 (MolF) the recombined H 2 S content for RP2 (MolF) the recombined H 2 S content for RPn (MolF) the recombined CO 2 content for RP1 (MolF) the recombined CO 2 content for RP2 (MolF) the recombined CO 2 content for RPn (MolF) ResidueGas_ProductAllocations VER docx -23-9/11/2017

25 Propane/Butane Plant Fuel Usage PBVOL rp1 = PFGV x PBPU PFGV = Plant Fuel Gas Volume (10 3 m 3 ) PBPU = PBFF x [(V rp1 x (C 3 rp1 C 4 rp1 )) / PBTOT] PBTOT = [(V rp1 x (C 3 rp1 C 4 rp1 )) (V rp2 x (C 3 rp2 C 4 rp2 )) (V rpn x (C 3 rpn C 4 rpn ))] Where: PBVOL rp1 = the propane/butane gas fuel volume for RP1 (10 3 m 3 ) PBPU = PBFF = PBTOT = the propane/butane plant fuel usage for an RP (fraction) the propane/butane plant fuel factor (percent) the total propane/butane volume from all RPs (litres) V rp1 = raw gas volume at RP1 (10 3 m 3 ) V rp2 = raw gas volume at RP2 (10 3 m 3 ) V rpn = raw gas volume at RPn (10 3 m 3 ) C 3 rp1 = the recombined propane content for RP1 (ml/m 3 ) C 3 rp2 = the recombined propane content for RP2 (ml/m 3 ) C 3 rpn = the recombined propane content for RPn (ml/m 3 ) C 4 rp1 = the recombined butane content for RP1 (ml/m 3 ) C 4 rp2 = the recombined butane content for RP2 (ml/m 3 ) C 4 rpn = the recombined butane content for RPn (ml/m 3 ) NOTE: In order to allocate the propane/butane fuel usage at the production source level, the propane/butane fuel consumption must be split to allocate the propane and butane usage separately at the receipt point level PVOL rp1 = ((PBVOL rp1 x C 3 rp1 ) / (C 3 rp1 C 4 rp1 )) BVOL rp1 = (PBVOL rp1 - PVOL rp1) Where: PBVOL rp1 = the propane/butane gas fuel volume for RP1 (10 3 m 3 ) PVOL rp1 = plant fuel propane volume for RP1 (10 3 m 3 ) BVOL rp1 = plant fuel butane volume for RP1 (10 3 m 3 ) C 3 rp1 = the recombined propane content for RP1 (ml/m 3 ) C 4 rp1 = the recombined butane content for RP1 (ml/m 3 ) ResidueGas_ProductAllocations VER docx -24-9/11/2017

26 Pentanes Plant Fuel Usage C 5 VOL rp1 = PFGV x CPU rp1 CPU rp1 = C 5 FF x [(V rp1 x C 5 rp1 ) / C 5 TOT] C 5 TOT = [(V rp1 x C 5 rp1 ) (V rp2 x C 5 rp2 ) (V rpn x C 5 rpn )] Where: C 5 VOL rp1 = plant fuel pentanes volume for RP1 (10 3 m 3 ) PFGV = plant fuel gas volume (10 3 m 3 ) CPU rp1 = C 5 FF = C 5 TOT = the pentanes plant fuel usage for RP1 (fraction) the pentanes plant fuel factor (percent) the total pentanes volumes from all RPs (litres) V rp1 = raw gas volume at RP1 (10 3 m 3 ) V rp2 = raw gas volume at RP2 (10 3 m 3 ) V rpn = raw gas volume at RPn (10 3 m 3 ) C 5 rp1 = the recombined C 5 content for RP1 (ml/m 3 ) C 5 rp2 = the recombined C 5 content for RP2 (ml/m 3 ) C 5 rpn = the recombined C 5 content for RPn (ml/m 3 ) 1912 Gathering Fuel Gas Allocation at a Receipt Point The gathering fuel gas allocation is based on the RP s raw gas volume The measured amount of gathering system fuel is prorated to the sum of raw gas at each RP (less any excepted RP s) Gathering Fuel Usage RGVOL rp1 = GFGV x RGFU rp1 GFGV = Gathering Fuel Gas Volume (10 3 m 3 ) RGFU rp1 = V rp1 /(VTOT-VTOT ex ) VTOT = V rp1 V rp2 V rpn Where: RGVOL rp1 = the gathering fuel volume for non exempted RP1 (10 3 m 3 ) RGFU rp1 = the gathering fuel usage for RP1 (fraction) VTOT = the total raw gas volume from all RPs (10 3 m 3 ) VTOT ex = the total raw gas volume from all RPs exempted from gathering fuel allocation (10 3 m 3 ) V rp1 = raw gas volume at RP1 (10 3 m 3 ) V rp2 = raw gas volume at RP2 (10 3 m 3 ) V rpn = raw gas volume at RPn (10 3 m 3 ) ResidueGas_ProductAllocations VER docx -25-9/11/2017

27 110 Production Source Allocation at a Receipt Point (Step Two) The allocation of raw gas, residue gas and energy, liquid by-products, and sulphur is performed once the Plant-to-RP allocation process (Section 71) has been validated The production source allocation process will allocate each of these products to a PS on a pro-rated basis 1101 Receipt Point Daily Proration The monthly residue gas, energy and by-products must be prorated back to a daily actual This process uses the daily RP raw gas volumes and RP FWA analysis to prorate each RP monthly actual into a daily actual The proration factor for monthly to daily actuals is based at the RP on the following: Raw Gas Volumes This is based on the estimated daily volume or actual measured daily volume Residue Gas Volume This is based on the daily theoretical residue volume that is calculated using the raw gas volume less the acid gas content (recombined) Residue Gas Energy This is based on the daily theoretical residue energy that is calculated using the raw gas volume less the acid gas content (recombined) Sulphur This is based on the daily raw gas volume and daily-recombined H 2 S content Propane This is based on the daily raw gas volume and daily-recombined propane content Butane This is based on the daily raw gas volume and daily-recombined butane content Pentanes This is based on the daily raw gas volume and daily-recombined pentanes content Plant Fuel Volume and Energy This is based on the daily raw gas volume Gathering Fuel Volume and Energy This is based on the daily raw gas volume Example for Daily Residue Gas Volume Determination at a Receipt Point RESVOL d1 = (TRESVOL d1 / TRESTOT m ) x RESVACT m TRESVOL d1 = [V d1 x (1 - (H 2 S d1 CO 2 d1 ))] TRESTOT m = (TRESVOL d1 TRESVOL d2 TRESVOL dn) Where: RESVOL d1 = allocated residue gas volume for Day 1 (10 3 m 3 ) RESVACT m = monthly allocated residue volume for the RP (10 3 m 3 ) V d1 = RP raw gas volume for Day 1 (10 3 m 3 ) H 2 S d1 = CO 2 d1 = daily recombined H 2 S content at an RP for Day 1 (MolF) daily recombined CO 2 content at an RP for Day 1 (MolF) TRESTOT m = monthly theoretical total residue volume (10 3 m 3 ) TRESVOL d1 = theoretical residue volume for Day 1 (10 3 m 3 ) TRESVOL d2 = theoretical residue volume for Day 2 (10 3 m 3 ) TRESVOL dn = theoretical residue volume for Day n (10 3 m 3 ) The monthly allocated residue gas energy for the RP is pro-rated on a daily basis using the same theoretical residue gas volumes as above ResidueGas_ProductAllocations VER docx -26-9/11/2017