The ERCB Directive 017 Overview

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The ERCB Directive 017 Overview November 4, 2009 By Bill Cheung

Why measure and report production, flaring, and venting? Public Safety and Environment Understand and monitor emissions Reservoir Engineering Better understand the adverse impacts to reservoirs Conservation To do proper economic evaluations to conserve Information and Statistics Balance Facilities AND Calculate Production and Royalty

Directive 017 - Overview Directive 017 is designed to consolidate all of Alberta s measurement requirement under one document when completed it describes: What, where, and how volumes must be measured, calculated, or estimated If accounting procedures must be performed on the determined volumes and what they are What data must be kept for audit purposes What resultant volumes must be reported

Directive 017 The 15 sections planned are: Section 1 Standards of Accuracy Section 2 Calibration and Proving Section 3 Proration and Allocation Factors, and Metering Differences Section 4 Gas Measurement Section 5 Site-specific Deviation from Base Requirements Section 6 Conventional Oil Measurement Section 7 Gas Proration Batteries Section 8 Gas and Liquid Sampling and Analysis

Directive 017 Section 9 Cross Border Measurement Section 10 Trucked Liquids Measurement Section 11 Acid Gas and Sulphur Measurement Section 12 Heavy Oil Measurement Section 13 Condensate and HVP Liquid Measurement Under Development are: Section 14 Liquids Measurement Section 15 Water Measurement Appendices are provided for definitions, information, and calculation examples only and are not enforceable items and there are 8 appendices so far.

Section 1 Standards of Accuracy Single Point Uncertainty this is the limits applicable to equipment and/or procedures used to determine a single-phase specific volume at a single measurement point

Uncertainty Calculation for a Single Gas Measurement Point Primary measurement device gas meter uncertainty = 1.0% Secondary device (pulse counter or transducer, etc.) uncertainty = 0.5% Secondary device calibration uncertainty = 0.5% Tertiary device (flow calculation, EFM, etc.) uncertainty = 0.2% Gas sampling and analysis uncertainty = 1.5% Combined uncertainty = [1.0) 2 + (0.5) 2 + (0.5) 2 + (0.2) 2 + (1.5) 2 ] = 1.95% (rounded to 2.0%)

Gas Uncertainty Limit Requirements Gas Measurement Type Gas delivery (sales gas) 2% Flare gas Acid Gas Fuel gas > 0.50 10 3 m 3 /d 0.50 10 3 m 3 /d (estimation allowed) Other gas measurement points 3% Single point measurement uncertainty 5% 10% 3% 10%

Liquid Uncertainty Limit Requirements Liquid Measurement Type Delivery Point Hydrocarbon Liquid > 100 m 3 /d 100 m 3 /d Well hydrocarbon production, Facility inlet or total facility hydrocarbon (if not delivery point) Injected water Produced Water Single point measurement uncertainty 0.5% 1% 2% 5% 10%

General Facility Schematics of Measurement Points

Gas Plant Measurement Points

Fuel Gas Usage Schematics of Measurement Points

Proration Oil Battery Schematic Test Meter A Oil Well Oil Well Group Meter Accounting Meter C Flare Gas Gathering Systems Oil Well Test Meter B Treater Fuel Oil Storage Vented Gas M OIl Sales to Pipeline Oil Well Oil Well Water Storage Disposal

Gas Proration Battery Schematic Separator

Gas Meter Instrumentation Calibration Frequency within the first calendar month of operation of a new meter, immediately (by the end of the calendar month) following service or repairs to the meter, semiannually thereafter if the meter is used in a gas plant or for sales/delivery point annually for all other meters

Gas Meter Inspections For meters with no internal moving parts inspection of primary measurement element is required: semiannually if the meter is used in a gas plant or for sales/delivery point (royalty trigger points), and annually for all other meters some inspection is done at scheduled shutdowns only for those facilities, such as a gas plant, where the metering differences and balances are checked regularly to ensure measurement integrity no inspection required if there are sufficient internal diagnostics to detect problems with the primary measurement element

Gas Meter Proving Proving: Meters (rotary or turbine) with internal moving parts must be proved at a frequency of once every 7 years following an initial proving prior to installation

Liquid Hydrocarbon Meter Proving Frequency Meter application Delivery point, LACT Gas plant, Cross-border Wellhead, Group, Injection Fluid type Oil, condensate, live condensate, NGL, LPG Live condensate, NGL, LPG Test oil, test emulsion, live condensate, water Proving frequency Monthly (see exceptions) Semiannually Annually

Proration & Allocation Factors It is generally used to: Correct bias error in the system and the factor range depends on the type of production Gas, Conventional Oil, Heavy Oil, or Water Target factors system performance monitors to track how the system is functioning and may be used to analyze or correct problems

Proration & Allocation Factors Facilities that should have proration or allocation factors are proration batteries and custom treaters Facilities that should not have proration factors are gathering systems, gas plants, injection facilities, gas groups, and single well batteries

Proration & Allocation Factors Facility Type Acceptable Factor Range Conventional oil battery oil = 0.95000 1.05000 gas = 0.90000 1.10000 water = 0.90000 1.10000 Gas battery gas = 0.90000 1.10000 water = 0.90000 1.10000 Custom treating plant, clean oil terminal oil = 0.95000 1.05000 water = 0.90000 1.10000

Metering Difference It is used to balance, on a monthly basis, any difference that occurs between the measured inlet volumes and the measured outlet / disposition volumes at a facility Target Metering Difference generally around +/- 5.0% for all facilities

Gas Measurement Base Pressure and Temperature for Reporting: 101.325 kpa and 15 o C Gas volume reports in unit of 10 3 m 3 rounded to 1 decimal place The installation must include instrumentation that allows for continuous pressure, temperature, and compressibility corrections (where required)

Meter Selection Selection of meter type and size must consider: process operating conditions (e.g., pressure, temperature, flow rate, fluid phase) required accuracy to meet Section 1 uncertainty requirements meter pressure drop required straight lengths required back pressure

Design and Installation Standards Meter Type Standard Orifice AGA #3 1991 and 2000 Turbine, Vortex AGA #7 Diaphragm or Rotary ANSI B109.1 & B109.3 Venturi or Flow Nozzle ISO 5167 Ultrasonic AGA #9 Coriolis AGA #11 Others Applicable industry standard or manufacturer s recommendation

Other Gas Measurement Requirements Electronic Flow Measurement (EFM) requirements and test cases Conventional & heavy oil gas production estimate Gas-Oil-ratio (GOR) are required for low gas production wells 0.5 10 3 m 3 /day. Gas-in-Solution (GIS) calculations for associated gas production Physical Properties of Gas and Liquid Components use the latest version of Gas Processors Association 2145, or Gas Processors Suppliers Association SI Engineering Data Book published values

Other Gas Measurement Requirements Gas chart field and chart reading operation requirements Sensing line sloping, drip pot, and tap valves requirements New chart reading technology (chart scanning) requirements for data storage and accuracy

Temperature Measurement Frequency Min. temperature reading frequency Continuous Criteria or events Daily > 16.9 10 3 m 3 /d Weekly 16.9 10 3 m 3 /d Sales/delivery points and/or EFM devices Daily Production (proration) volume testing, or Nonroutine or emergency flaring and venting

Gas Measurement Requirements Compressibility Calculation Methods: AGA8 Other methods used with Wichert-Aziz sour gas correction: Redlich-Kwong Standing and Katz Starling Hall, Yarborough Others

EFM Systems API MPMS 21.1 complaint systems are accepted Performance Evaluation: Performed within 2 weeks of installation or immediately after any changes to the algorithms or program Reporting requirements Daily, Monthly, and Configuration reports, Events and Alarm logs

EFM Systems Performance Evaluation By inputting known values (provided 8 test cases - AGA3 and AGA7) of flow parameters into the EFM to verify the volume calculation, coefficient factors, and other parameters, or A snapshot of the instantaneous flow parameters and factors, flow rates, and configuration information is to be taken from the EFM and input to a flow calculation checking program that performs within the target limits for all the factors and parameters listed in the test cases. Accuracy requirements

Gas and Liquid Sampling and Analysis Frequency Flowrate > 16.9 10 3 m 3 /d - Annual Flowrate 16.9 10 3 m 3 /d - Biannual Sales, Gas Plants Semi-annual Other schemes per approval

Flare & Vent Volume Determination Flare and vent volumes can be determined using one of the following methods: equipment leak or flow test calculations based on beginning and final pressure and temperature and volume of equipment software program simulation other methods listed in the Canadian Association of Petroleum Producers (CAPP) Guide for Estimation of Flaring and Venting Volumes from Upstream Oil and Gas Facilities operators must be able to demonstrate that volumes of gas are accurately and consistently determined

Gas-Oil-Ratio (GOR) & Gas-in- Solution (GIS) Determination GOR & GIS can be determined using one of the following methods: 24 hour test Pressurized oil sample taken for Pressure-volumetemperature (PVT) or a laboratory analysis Other methods listed in the Canadian Association of Petroleum Producers (CAPP) Guide for Estimation of Flaring and Venting Volumes from Upstream Oil and Gas Facilities Use a rule-of-thumb estimate of 0.0257 m 3 of gas per m 3 of oil per kpa pressure drop for 2.0 m 3 /d of oil production (not applicable for GIS)

Websites ERCB regulations and directives http://www.ercb.ca/portal/server.pt?open=512&objid =253&PageID=0&cached=true&mode=2 CAPP Flaring and Venting Estimation Guide http://www.capp.ca/library/publications/sourgasflarin gventing/pages/pubinfo.aspx?docid=38234