2. Value from Measurement Schematics
Introductory Comments
15 High Level Ideas (white paper has details)
Ask your questions as we go along
Discuss other ideas/opportunities

3. Introduction
Assumes you already have a decent set of measurement schematics.
Built in any software.
The ideas are not original. But company’s go through cycles of learning, focussing and then forgetting.
Key to get measurement schematics outside the measurement group.

4. #1 – Production Hours Work with Production Accounting
Required to be on measurement schematics
Most forms of artificial lift have downtime as part of their production cycle.
Routine, planned down time on an artificial lift well can be counted as “on time”.
Under reported hours cause over calculated production rates, which gives a higher monthly royalty rate.
Can re-file up to 5 years after.

5. #2 - Sales of Fuel Gas Work with Production Accounting & JI
Required to be on measurement schematics
Fuel gas sold off lease needs to be reported and billed out.
Financial impact wherever the working interests differ.
Many auditors will only bring up cases where they win.

6. #3 – Non-Accounting Meters
Work with Field and Measurement
Not required to be on measurement schematics
Non-accounting meters do not need to be calibrated or have samples taken for them at any regulated frequency.
Unless marked, it is not clearly agreed across the company.

7. #4 – Gas Well Producing Oil
Work with Production Accounting
Required to be on measurement schematics
It is only recently that the Volumetric Gas Well Liquid (VGWL) was exportable from Petrinex
Royalty rates are lower on oil than on condensate.

8. #5 – PD Gas Measurement Work with Production Accounting
Required to be on measurement schematics
PD meters on gas need to be manually pressure and temperature compensated.
Typically a factor of 5 to 10
Auditors often only identify where it helps them.

9. #6 – Suspended Wells and Pipelines
Work with Production Accounting and Asset Mgt.
Not required to be on measurement schematics, but Shut-In wells are to be shown
Alberta Energy has industry maintain 2 different lists of suspended wells
Petrinex statuses are fed to the municipalities to be used in property tax calculations.
Lower taxes are charged on suspended facilities
Also can impact DD&A calculations

10. #7 – Fuel Gas Estimates Work with Field and Production Accounting
Required to be on measurement schematics
Need to provide a consistent and supportable method of estimating fuel gas, with a paper trail
Auditors will often only identify where it helps them

11. #8 – Effluent Testing Waivers
Work with Field and Measurement
Required to be on measurement schematics
Four ways;
Low pressure (350 kpa)
Listed zone
Plunger with EFM
Low liquid rate and partner/royalty agreement
Saves about $3,000 to $5,000 per year per well

12. #9 – Upstream vs. Downstream
Work with Production Accounting
Required to be on measurement schematics
The math in the allocation system needs to match the location of the offtakes
Auditors sometimes only identify where it helps them

13. #10 – 3rd Party Fees Work with JI and Revenue Accounting
Required to be on measurement schematics
If 3 months after start-up a 3rd Party company has not seen volumes or capital fees allocated to it, who do they call?

14. #11 – Excel Cross Checks Work with Engineers and others
Partially required to be on measurement schematics
Many roles in a company use data that partially shows on the measurement schematics;
Benzene testing of Amine Dehys
Compression Engineers
Cross Checking improves/validates both sides

15. #12 – Air Eliminators Work with Field and Measurement
Not required to be on measurement schematics

16. #13 – EPAP Controls Work with EPAP Coordinators
Ideas 1 to 12 inclusive are EPAP controls
Do the documentation

17. #14 – Emergency Response Maps
Work with HSE
The current flow connection maps on a measurement schematic are useful in emergencies.
Can reduce the expense of updating existing maps in the Emergency Response Team’s maps

18. #15 – Reduce PA Rework Work with Production Accounting leads
Measurement Schematics were originally mandated to help improve the production accounting process.
Often 25% of a PA team is working on rework
Ask what else could be done to reduce this more

19. Conclusion
Working several of these issues will improve and validate your measurement schematics.
Valid measurement schematics have value that exceeds the costs

20. Please complete your course evaluation online: www.cshmsurvey.com