Bulletin 2015-19

Bulletin 2015-19: Updates to Directive 017: Measurement Requirements for Oil and Gas Operations

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Updates to Directive 017: Measurement Requirements for Oil and Gas Operations

May 28, 2015

The Alberta Energy Regulator (AER) has released a revised edition of Directive 017: Measurement Requirements for Oil and Gas Operations (Directive 017), which replaces the edition released on May 15, 2013. The updated directive revises specific measurement requirements based on feedback from industry and on observations the AER has made while monitoring operations.

Directive 017 consolidates, clarifies, and updates AER requirements for measurement points used for AER accounting and reporting purposes, as well as those measurement points required for upstream petroleum facilities and some downstream pipeline operations under existing regulations.

The purpose of the revised edition of Directive 017 is to update requirements primarily related to aspects of proration measurement (sections 3, 4, 5, 7, and 8), as well as heavy oil measurement (section 12) and water measurement (section 15). These changes provide greater flexibility in measurement equipment and reduce operating costs without compromising accurate measurement and reporting.

The new edition of Directive 017 includes the following changes:

Change

Location in revised directive

The gas proration target range for southeastern Alberta gas batteries (subtype 363 and 366) has been increased to 0.80000 – 1.20000.

Section 3.1.4

Two-phase separation and three-phase measurement at a group separator for effluent and proration measured gas wells is now permitted.

Sections 4.2.2.3 and 7.1.1

A facility-level gas-oil ratio (GOR) may be used to determine gas production for individual wells of oil batteries that produce very little gas. An application is not required for batteries with an average well monthly gas production (battery gas production divided by the number of wells) of less than or equal to 0.5 103 m3/day per well. For wells that produce an average monthly oil production greater than 2.0 m3/day, well GOR tests must be conducted to determine well gas production.

Section 4.3.5.2

Measured condensate volumes can now be reported as a liquid disposition and receipt, instead of a gas equivalent volume (GEV), where a measured gas source delivers condensate to a gas proration battery and the condensate at the proration battery is tanked and disposed to sales.

Section 5.5.1

The allowed ratio of measured gas compared to battery gas disposition (“R” ratio) for gas measurement by difference has been increased from 0.35 to 0.75.

Section 5.5.1

The allowed ratio of measured oil compared to battery oil production (“R” ratio) for oil measurement by difference has been increased from 0.25 to 1.00.

Section 5.5.2

Reporting options have been revised for condensate (diluent) delivery to an oil battery.

Sections 5.5.1, 5.5.3, and 5.5.5; table 5.6

Combined oil receipts by truck and pipeline into one section.

Section 5.5.3.2

Condensate reporting options have changed as a result of changes to table 5.6.

Section 6.6

Effluent wells that have a liquid-gas ratio (LGR) greater than 0.2 m3/103 m3 but less than 0.28 m3/103 m3 and that have test gas volumes less than 5.0 103 m3/day may conduct effluent correction factor tests (ECF) biennially instead of annually.

Section 7.4.1.1, figure 7.10

Wells that are ECF-tested and that have a liquid-gas ratio (LGR) of less than or equal to 0.20 m3 (liquid) / 103 m3 (gas) and the test gas rate is less than or equal to 5.0 103 m3/day for two consecutive tests are exempted from further ECF testing.

Section 7.4.1.1, figure 7.10

Gas proration battery water production may be allocated to wells based upon each well’s percentage of the total theoretical gas production.

Section 7.4.2

Gas sampling and analysis requirements are the same for both heavy oil and bitumen wells, and if a well produces less than 2.0 m3/day, only the initial sample is required.

Table 8.3

At gas proration batteries outside southeastern Alberta (subtype 364: Proration Gas Wells), all wells from a single pool (or commingled pool) producing to a test meter may use one representative sample analysis of well gas and condensate to calculate test meter volumes.

Section 8.4.2

Effluent proration battery wells (subtype 362) are allowed the same exception to gas sampling and analysis frequency requirements as gas proration batteries outside of southeastern Alberta (subtype 364). Analyses do not need to be updated in situations where three consecutive gas relative density (RD) determinations are all within ±1.0 per cent of the average of the previous three RD values.

Section 8.4.3

Added flaring to reporting requirements for crude bitumen administrative batteries.

Section 12.2.1.2

Heavy oil and bitumen wells, including thermal in situ wells, are required to have one valid testing hour for every 40 hours the well is in operation. The previous limitation of a maximum of 12 wells per test separator has been eliminated.

Section 12.3.9

The AER will permit commingled production of a steam-assisted gravity drainage (SAGD) well and an infill production well upstream of the well test separation-measurement system in situations where licensees can demonstrate that steam chambers have coalesced.

Section 12.3.9

Water injected into injection or disposal wells that were constructed before September 11, 2012, may be metered at a field injection header, an injection facility, or the wellhead. For facilities constructed after September 11, 2012, injected well volumes must be metered at the wellhead.

Section 15.2.4

Directive 017 has been updated to reflect current AER organization and contact information.

Throughout.

The abbreviation for the Petroleum Information Network has been changed from “PETRINEX” to “Petrinex.”

Throughout.


Due to these changes, some aspects of the Enhanced Production Audit Program (EPAP) will change, such as Compliance Assurance Indicators on Petrinex. Details on any changes required to EPAP will be communicated separately once finalized.

Further Information

Directive 017 is available on the AER website, www.aer.ca. Printed copies of the directive can be purchased from AER Order Fulfillment, Suite 1000, 250 – 5 Street SW, Calgary, Alberta T2P 0R4; telephone: 403-297-8311 or 1-855-297-8311 (toll free; option 2); fax: 403-297-7040; e-mail: InformationRequest@aer.ca.

Comments or questions should be directed to the AER Customer Contact Centre at 403-297-8311 or by e-mail at inquiries@aer.ca.

<original signed by>

Kirk Bailey
Executive Vice President
Operations Division